Note 5 — Equity Investments

As of December 31, 2013, we had two investments that we account for using the equity method of accounting: Deepwater Gateway and Independence Hub, both of which are included in our Production Facilities segment.

Deepwater Gateway, L.L.C. In June 2002, we, along with Enterprise Products Partners L.P. (”Enterprise”), formed Deepwater Gateway, each with a 50% interest, to design, construct, install, own and operate a tension leg platform production hub primarily for Anadarko Petroleum Corporation's Marco Polo field in the Deepwater Gulf of Mexico. Our investment in Deepwater Gateway totaled $85.8 million and $91.4 million as of December 31, 2013 and 2012, respectively (including capitalized interest of $1.3 million and $1.3 million at December 31, 2013 and 2012, respectively).

Independence Hub, LLC. In December 2004, we acquired a 20% interest in Independence Hub, an affiliate of Enterprise. Independence Hub owns the "Independence Hub" platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. Our investment in Independence Hub was $72.1 million and $76.2 million as of December 31, 2013 and 2012, respectively (including capitalized interest of $4.3 million and $4.6 million at December 31, 2013 and 2012, respectively).

We received the following distributions from our equity method investments during the years ended December 31, 2013, 2012 and 2011 (in thousands):


		Year Ended December 31,
		2013		2012		2011

Deepwater Gateway	$	7,600	$	8,157	$	7,600
Independence Hub		4,660		8,073		18,580
Total	$	12,260	$	16,230	$	26,180

In February 2010, we announced the formation of a joint venture with an Australian-based engineering and construction company, Clough Limited (“Clough”), to provide a range of subsea services to offshore operators in the Asia Pacific region. Our contribution to the joint venture totaled $2.7 million in 2011 and our share of the income associated with the Australian joint venture’s operations was $2.1 million.

In December 2011, the marine construction and offshore engineering operations of Clough were acquired by a third party, including Clough’s 50% ownership interest in the joint venture. At December 31, 2011, we conducted an impairment assessment of our investment in the joint venture based on uncertainties concerning the continued availability of the Normand Clough and the limited backlog of existing projects at the time. We concluded that the $10.6 million carrying amount of the investment in the joint venture was fully impaired and recorded a $10.6 million other than temporary impairment charge in the accompanying consolidated statements of operations.

In the first quarter of 2012, we recorded additional losses totaling $3.8 million, including a $3.0 million fee when we negotiated our exit from the joint venture. In April 2012, we paid this fee. In connection with our exit, we were entitled to 50% of the value of certain of the net assets on hand at the time of our departure. We received approximately $3.7 million of proceeds for our pro rata portion of such assets of the joint venture, which was recorded as income in “Equity in earnings of investments” during the second quarter of 2012. We are no longer a participant in this Australian joint venture.

The summarized aggregated financial information related to the equity method investment is as follows (in thousands):


		Year Ended December 31,
		2013		2012		2011

Revenues	$	32,942	$	53,159	$	193,521
Operating income		10,058		30,463		97,954
Net income		10,058		30,463		93,215


		December 31,
		2013		2012		2011

Current assets	$	10,314	$	16,682	$	39,754
Total assets		508,495		537,251		591,761
Current liabilities		90		706		11,012
Total liabilities		5,006		5,320		27,163