Business Segment Information

12 Months Ended

Dec. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 12 — Business Segment Information 

We have four reportable business segments: Well Intervention, Robotics, Production Facilities and Subsea Construction.  Our Well Intervention segment includes our vessels and equipment used to perform well intervention services primarily in the Gulf of Mexico and North Sea regions.  Our well intervention vessels include the Q4000, the Helix 534, the Seawell, the Well Enhancer and the Skandi Constructor, which is a chartered vessel.  We are currently constructing two additional well intervention vessels, the Q5000 and the Q7000.  We have also contracted to charter two newbuild vessels, which are expected to be delivered in 2016 and used in connection with our contracts to provide well intervention services offshore Brazil.  Our Robotics segment currently operates four chartered vessels, and also includes ROVs, trenchers and ROVDrills designed to complement offshore subsea construction and well intervention services.  The Production Facilities segment includes the HP I as well as our investments in Deepwater Gateway and Independence Hub that are accounted for under the equity method.  Over the past several years, we have sold essentially all of the assets associated with our Subsea Construction business, including the sale in January 2014 of our spoolbase located in Ingleside, Texas (Note 2).  As mentioned above, our robotics business provides significant direct services to complement the offshore subsea construction industry, and will continue to do so.  All material intercompany transactions between the segments have been eliminated.  In February 2013, we sold ERT and as a result, the assets and liabilities included in the sale of ERT and the historical operating results of our former Oil and Gas segment are presented as discontinued operations in the accompanying consolidated financial statements.  See Note 13 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 each reportable segment.  Corporate and other includes all assets not directly identifiable with our business segments.  Certain financial data by reportable segment are summarized as follows (in thousands): 

		Year Ended December 31,
		2014		2013		2012
Net revenues —
Well Intervention	$	667,849	$	452,452	$	378,546
Robotics		420,224		333,246		328,726
Production Facilities		93,175		88,149		80,091
Subsea Construction		358		71,321		192,521
Intercompany elimination		(74,450)		(68,607)		(133,775)
Total	$	1,107,156	$	876,561	$	846,109
Income (loss) from operations —
Well Intervention	$	204,810	$	131,840	$	85,482
Robotics		68,329		44,132		55,678
Production Facilities		41,138		49,778		40,082
Subsea Construction (1)		10,923		33,685		(148,862)
Corporate and other		(62,523)		(77,041)		(92,985)
Intercompany elimination		(921)		(3,360)		(7,878)
Total	$	261,756	$	179,034	$	(68,483)
Net interest expense and other —
Well Intervention	$	(6,915)	$	(217)	$	2,152
Robotics		7,304		(210)		(1,203)
Production Facilities		384		380		365
Subsea Construction		(278)		480		(247)
Corporate and eliminations (2)		(381)		37,978		64,882
Total	$	114	$	38,411	$	65,949
Equity in earnings of equity investments	$	879	$	2,965	$	8,434

Income (loss) before income taxes —
Well Intervention	$	211,725	$	132,057	$	83,205
Robotics		61,025		44,342		56,881
Production Facilities		41,633		52,363		48,276
Subsea Construction		11,201		33,205		(148,615)
Corporate and eliminations		(63,063)		(118,379)		(165,745)
Total	$	262,521	$	143,588	$	(125,998)
Income tax provision (benefit) —
Well Intervention	$	50,102	$	26,718	$	15,400
Robotics		21,612		15,530		20,222
Production Facilities		14,395		17,233		15,784
Subsea Construction		3,881		11,655		(51,329)
Corporate and eliminations		(23,019)		(39,524)		(59,235)
Total	$	66,971	$	31,612	$	(59,158)

Identifiable assets —
Well Intervention	$	1,470,349	$	1,245,229	$	936,926
Robotics		299,701		282,373		258,117
Production Facilities		459,427		495,829		504,828
Subsea Construction		27,547		38,054		303,479
Corporate and other		443,674		482,795		483,003
Discontinued operations		-		-		900,227
Total	$	2,700,698	$	2,544,280	$	3,386,580
Capital expenditures —
Well Intervention	$	283,635	$	283,132	$	274,451
Robotics		51,348		39,655		44,500
Production Facilities		869		1,252		823
Corporate and other		1,060		387		3,265
Total	$	336,912	$	324,426	$	323,039

Depreciation and amortization —
Well Intervention	$	57,570	$	44,619	$	37,736
Robotics		24,478		22,263		19,933
Production Facilities		21,278		17,193		16,828
Subsea Construction		-		8,651		19,773
Corporate and eliminations		6,019		5,809		2,931
Total	$	109,345	$	98,535	$	97,201

(1) Amount in 2014 includes the $10.5 million gain on the sale of our Ingleside spoolbase in January 2014.  Amount in 2013 includes 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.  Amount in 2012 includes impairment charges of $157.8 million for the Caesar and $14.6 million for the Intrepid (Note 2).

(2) Amount in 2014 includes $16.9 million of income with $7.2 million from an insurance reimbursement related to asset retirement work previously performed and the remaining income associated with our overriding royalty interests in ERT’s Wang well, which commenced production in late April2013.

Intercompany segment amounts are derived primarily from equipment and services provided to other business segments at rates consistent with those charged to third parties.  Intercompany segment revenues during the years ended December 31, 2014,2013 and 2012 are as follows (in thousands): 

		Year Ended December 31,
		2014		2013		2012
Well Intervention	$	29,875	$	22,448	$	36,781
Robotics		44,575		41,169		46,465
Production Facilities		-		4,673		46,057
Subsea Construction		-		317		4,472
Total	$	74,450	$	68,607	$	133,775

Intercompany segment profits (losses) (which only relate to intercompany capital projects) during the years ended December 31, 2014,  2013 and 2012 are as follows (in thousands): 

		Year Ended December 31,
		2014		2013		2012
Well Intervention	$	(323)	$	(141)	$	6,203
Robotics		1,419		3,518		180
Production Facilities		(175)		(175)		(175)
Subsea Construction		-		158		1,670
Total	$	921	$	3,360	$	7,878

Revenues by individually significant region during the years ended December 31, 2014,  2013 and 2012 are as follows (in thousands): 

		Year Ended December 31,
		2014		2013		2012
United States	$	403,994	$	345,525	$	281,308
North Sea (1)		504,016		403,816		345,074
Other		199,146		127,220		219,727
Total	$	1,107,156	$	876,561	$	846,109

(1) Includes revenues of $362.7 million, $327.1 million and $283.1 million, respectively, which were from the United Kingdom during years ended December 31, 2014, 2013 and 2012.

We include the property and equipment, net in the geographic country in which it legally resides.  The following table provides our property and equipment, net of accumulated depreciation, by individually significant region (in thousands): 

		Year Ended December 31,
		2014		2013		2012
United States	$	913,422	$	1,119,075	$	1,180,586
United Kingdom		355,996		336,317		304,062
Luxembourg		465,875		76,749		-
Other		91		76		1,227
Total	$	1,735,384	$	1,532,217	$	1,485,875