Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 17 — 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 business segments: Contracting Services and Production Facilities. As a result, our reportable segments consisted of the following: Contracting Services, Oil and Gas and Production Facilities. Contracting Services operations include well operations and robotics, subsea construction and deepwater pipelay.  Previously, we had a fourth business segment,  Shelf Contracting, which represented the operations of CDI.  In June 2009, we ceased consolidating CDI  when our ownership interest decreased to below 50% following the sale of a substantial portion of CDI common stock held by us (Note 3).  We continued to disclose the results of Shelf Contracting business as a segment up to and through June 10, 2009, the date we deconsolidated it from our financial statements.  All material intercompany transactions between the segments have been eliminated.

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. The majority of our Production Facilities segment (Deepwater Gateway and Independence Hub) is accounted for under the equity method of accounting. We consolidate our investment in the HP I and Kommandor LLC and its results are included within our Production Facilities segment.

The following summarizes certain financial data by business segment:

		Year Ended December 31,
		2011			2010			2009
		(in thousands)
Revenues —
Contracting Services	$	738,235		$	780,339		$	796,158
Shelf Contracting		—			—			404,709
Oil and Gas		696,607			425,369			385,338
Production Facilities(1)		75,460			117,300			3,395
Intercompany elimination		(111,695	)		(123,170	)		(127,913	)
Total	$	1,398,607		$	1,199,838		$	1,461,687
Income (loss) from operations —
Contracting Services	$	107,013		$	77,391		$	118,176
Shelf Contracting		—			—			59,077
Oil and Gas		129,936			(160,206	)		91,668
Production Facilities(1)		38,404			63,863			(3,918	)
Corporate		(39,918	)		(56,609	)		(47,734	)
Intercompany elimination		93			(19,095	)		(13,454	)
Total(2)	$	235,528		$	(94,656	)	$	203,815
Net interest expense and other —
Contracting Services	$	765		$	1,299		$	(2,280	)
Shelf Contracting		—			—			6,642
Oil and Gas		25,833			18,886			20,152
Production Facilities		442			865			2,011
Corporate and eliminations		72,913			65,274			24,970
Total	$	99,953		$	86,324		$	51,495
Equity in earnings of equity investments	$	22,215		$	19,469		$	32,329
Income (loss) before income taxes —
Contracting Services	$	97,798		$	72,459		$	120,456
Shelf Contracting		—			—			52,435
Oil and Gas		104,103			(179,092	)		71,516
Production Facilities(1)		58,064			86,100			18,300
Corporate and eliminations		(111,985	)		(143,218	)		(715	)
Total	$	147,980		$	(163,751	)	$	261,992

		Year Ended December 31,
		2011			2010			2009
		(in thousands)
Provision (benefit) for income taxes —
Contracting Services	$	29,235		$	42,828		$	43,334
Shelf Contracting		—			—			16,275
Oil and Gas		35,858			(62,954	)		23,352
Production Facilities		19,233			29,049			6,198
Corporate and eliminations		(69,423	)		(48,521	)		6,663
Total	$	14,903		$	(39,598	)	$	95,822
Identifiable assets —
Contracting Services	$	2,006,065		$	1,856,016		$	1,738,005
Oil and Gas		1,041,506			1,223,014			1,541,153
Production Facilities		534,776			512,990			499,497
Discontinued operations		—			—			878
Total	$	3,582,347		$	3,592,020		$	3,779,533
Capital expenditures —
Contracting Services	$	69,259		$	65,949		$	204,228
Shelf Contracting		—			—			39,569
Oil and Gas		119,614			84,554			137,168
Production Facilities		30,896			56,269			42,408
Total	$	219,769		$	206,772		$	423,373
Depreciation and amortization —
Contracting Services	$	73,291		$	66,333		$	53,411
Shelf Contracting		—			—			34,243
Oil and Gas		219,915			235,290			168,101
Production Facilities		14,935			9,907			3,295
Corporate and eliminations		2,962			5,586			3,567
Total	$	311,103		$	317,116		$	262,617

(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).   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.    The  HP I participated in the BP oil spill and containment response efforts and is currently being utilized as the processing unit for our Phoenix field.

(2)

Includes $16.7 million of goodwill impairment charge for year ending December 31, 2010 related to our contracting services segment.   Also includes approximately $132.6 million, $181.1 million and $120.6 million of asset impairment charges for certain oil and gas properties for the years ended December 31, 2011, 2010 and 2009 respectively.

Intercompany segment revenues during the years ended December 31, 2011, 2010 and 2009 was as follows (in thousands):

		Year Ended December 31,
		2011		2010		2009
Contracting Services	$	65,638	$	109,012	$	120,048
Production Facilities		46,057		14,158		—
Shelf Contracting		—		—		7,865
Total	$	111,695	$	123,170	$	127,913

Intercompany segment profit (loss) (which only relates to intercompany capital projects) during the years ended December 31, 2011, 2010 and 2009 was as follows (in thousands):

		Year Ended December 31,
		2011			2010		2009
Contracting Services	$	104		$	15,655	$	13,205
Production Facilities		(197	)		3,457		(116	)
Shelf Contracting		—			—		365
Total	$	(93	)	$	19,112	$	13,454

Revenue by individually significant country during the years ended December 31, 2011, 2010 and 2009 was as follows (in thousands):

		Year Ended December 31,
		2011		2010		2009
United States	$	1,013,476	$	827,597	$	923,481
United Kingdom		275,499		198,011		124,896
India		44,772		56,311		233,466
Other		64,860		117,919		179,844
Total	$	1,398,607	$	1,199,838	$	1,461,687

We include the property and equipment, net in the county in which it is legally owned.  The following table provides our property and equipment, net of depreciation by country (in thousands):

		Year Ended December 31,
		2011		2010		2009
United States	$	2,034,978	$	2,236,455	$	2,564,673
United Kingdom		281,430		275,012		284,637
Other		14,919		15,613		14,396
Total	$	2,331,327	$	2,527,080	$	2,863,706