Business Segment Information

9 Months Ended

Sep. 30, 2013

Business Segment Information [Abstract]

Business Segment Information

Note 12 — Business Segment Information 

Our operationsare currently disaggregated into four business segments:Well Intervention, Robotics,Subsea Construction and Production Facilities.  Our Well Intervention segment includes our vessels and related equipment that are used to perform both heavy and light well intervention services primarily in the Gulf of Mexico and North Sea regions.  Our well intervention vessels include the Q4000, the Seawell, the Well Enhancer and the Skandi Constructor, which is chartered.  We are currently constructing two additional well intervention vessels, the Q5000 and the Q7000.  Additionally, the Helix 534, a refurbished drillship, is expected to join our fleet in December 2013.  Our Robotics segment currently operates five chartered vessels and also includes ROVs, trenchers and ROVDrills designed to complement offshore construction and well intervention services.  We have sold substantially all of the assets associated with our former Subsea Construction operations (Note 2).The Production Facilities segment includes our consolidated investment in the HP I and Kommandor LLC as well as our equity investments in Deepwater Gateway and Independence Hub that are accounted for under the equity method.  All material intercompany transactions between the segments have been eliminated.  In February 2013, we sold ERT and as a result, we have presented the assets and liabilities included in the sale of ERT and the historical operating results of our former Oil and Gas segment as discontinued operations in the accompanying condensed consolidated financial statements.  See Note 4 for additional information regarding our discontinued operations.

We evaluate our performance based on operating income and income before income taxes of each segment.  Segment assets are comprised of all assets attributable to the reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Revenues —
Well Intervention	$	114,238	$	88,711	$	319,893	$	274,249
Robotics		90,370		95,107		242,940		238,762
Subsea Construction		4,120		37,673		69,305		162,581
Production Facilities		24,366		20,024		68,933		60,009
Intercompany elimination		(12,977)		(24,405)		(51,347)		(91,188)
Total	$	220,117	$	217,110	$	649,724	$	644,413
Income (loss) from operations —
Well Intervention	$	33,544	$	17,405	$	93,906	$	53,647
Robotics		16,392		22,627		28,991		50,301
Subsea Construction (1)		15,088		(7,020)		29,031		7,411
Production Facilities		14,136		10,180		39,964		30,111
Corporate and other		(16,522)		(23,015)		(64,260)		(61,434)
Intercompany elimination		21		39		(2,538)		(2,883)
Total	$	62,659	$	20,216	$	125,094	$	77,153
Equity in earnings of equity investments	$	857	$	1,392	$	2,150	$	7,547

(1) The 2013 amounts include the $1.1 million loss on the sale of the Caesar in June 2013 and the $15.6 million gain on the sale of the Express in July 2013 (Note 2).

Intercompany segment revenues are as follows (in thousands): 

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Well Intervention	$	4,784	$	5,797	$	15,052	$	18,231
Robotics		8,193		7,099		31,305		34,684
Subsea Construction		-		-		317		3,720
Production Facilities		-		11,509		4,673		34,553
Total	$	12,977	$	24,405	$	51,347	$	91,188

Intercompany segment profits (losses) (which only relate to intercompany capital projects) are as follows (in thousands): 

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Well Intervention	$	(45)	$	(57)	$	(91)	$	1,259
Robotics		67		62		2,602		98
Subsea Construction		-		-		158		1,657
Production Facilities		(43)		(44)		(131)		(131)
Total	$	(21)	$	(39)	$	2,538	$	2,883

Segment assets are comprised of all assets attributable to each reportable segment.  Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents.  The following table reflects total assets by reportable segment (in thousands): 

		September 30,		December 31,
		2013		2012
Well Intervention	$	1,191,001	$	936,926
Robotics		276,057		258,117
Subsea Construction		57,623		303,479
Production Facilities		491,535		504,828
Corporate and other		495,690		483,003
Discontinued operations		-		900,227
Total	$	2,511,906	$	3,386,580