Business Segment Information

6 Months Ended

Jun. 30, 2011

Business Segment Information

Business Segment Information

Note 12 – Business Segment Information

Our operations are conducted through the following lines of business: contracting services and oil and gas.  We have disaggregated our contracting services operations into two reportable segments.  As a result, our reportable segments consisted of the following: Contracting Services, Production Facilities and Oil and Gas. Contracting Services operations include subsea construction, deepwater pipelay, well operations and robotics.  The Production Facilities segment includes our consolidated investment in the HP I and Kommandor LLC as well as the retainer fee related to the HFRS and our equity investments in Deepwater Gateway and Independence Hub that are accounted for under the equity method of accounting.

We evaluate our performance based on income before income taxes of each segment. Segment assets are comprised of all assets attributable to the reportable segment.  All material intercompany transactions between the segments have been eliminated.

 

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2011			2010			2011			2010
		(in thousands)
Revenues —
Contracting Services	$	171,353		$	202,317		$	302,890		$	356,517
Production Facilities		20,545			21,391			36,115			22,711
Oil and Gas		172,458			102,586			341,317			193,301
Intercompany elimination		(26,037	)		(27,032	)		(50,396	)		(71,697	)
Total	$	338,319		$	299,262		$	629,926		$	500,832
Income (loss) from operations —
Contracting Services	$	30,565		$	43,781		$	33,831		$	71,267
Production Facilities (1)		11,920			12,977			17,876			12,940
Oil and Gas		43,064			(154,943	)		96,304			(155,607	)
Corporate (2)		(9,112	)		(12,597	)		(19,553	)		(35,475	)
Intercompany elimination		(19	)		(6,114	)		71			(18,419	)
Total	$	76,418		$	(116,896	)	$	128,529		$	(125,294	)
Equity in earnings of equity investments (Note 6)	$	5,887		$	1,656		$	11,537		$	6,711

(1)In April 2009, Kommandor LLC commenced leasing the HP I to us under terms of a charter arrangement following the completion of the initial conversion of the vessel (Note 8 of our 2010 Form 10-K).  The HP I was certified as a floating oil and gas production unit in June 2010 following the completion of installation of oil and gas processing facilities on the vessel.

(2)The six-month period ended June 30, 2010, included $13.8 million of $17.5 million settlement of a third party claim against us in March 2010 (Note 14).

            Intercompany segment revenues during the three- and six-month periods ended June 30, 2011 and 2010 were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
		(in thousands)
Contracting Services	$	14,295	$	24,426	$	27,164	$	68,167
Production Facilities		11,742		2,606		23,232		3,530
Total	$	26,037	$	27,032	$	50,396	$	71,697

            Intercompany segment gross profit (losses) during the three- and six-month periods ended June 30, 2011 and 2010 were as follows:

		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2011			2010		2011			2010
		(in thousands)
Contracting Services	$	63		$	3,701	$	39		$	15,143
Production Facilities		(44	)		2,413		(110	)		3,293
Total	$	19		$	6,114	$	(71	)	$	18,436

                Our identifiable assets as of June 30, 2011 and December 31, 2010 were as follows:

	June 30, 2011		December 31, 2010
		(in thousands)
Identifiable Assets —
Contracting Services	$	1,869,593	$	1,856,016
Production Facilities		518,220		512,990
Oil and Gas		1,172,824		1,223,014
Total	$	3,560,637	$	3,592,020