Business Segment Information

6 Months Ended

Jun. 30, 2019

Note 12 — Business Segment Information

We have three reportable business segments: Well Intervention, Robotics and Production Facilities. Our U.S., U.K. and Brazil well intervention operating segments are aggregated into the Well Intervention business segment for financial reporting purposes. Our Well Intervention segment includes our vessels and/or equipment used to perform well intervention services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa. Our well intervention vessels include the Q4000, the Q5000, the Seawell, the Well Enhancer, and the chartered Siem Helix 1 and Siem Helix 2 vessels. Our well intervention equipment includes IRSs and SILs, some of which we provide on a stand-alone basis, and also includes STL beginning in the second quarter of 2019 (Note 2). Our Robotics segment includes ROVs, trenchers and a ROVDrill, which are designed to complement offshore construction and well intervention services, and three ROV support vessels under long-term charter: the Grand Canyon, the Grand Canyon II and the Grand Canyon III. Our Production Facilities segment includes the HP I, the HFRS, our ownership interest in Independence Hub (Note 4) and our ownership of certain oil and gas properties that we acquired from Marathon Oil in January 2019 (Note 13). All material intercompany transactions between the segments have been eliminated.

We evaluate our performance based on operating income of each reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net revenues —
Well Intervention	$	159,074		$	161,759		$	281,305		$	291,328
Robotics	45,446			39,060			84,487			66,229
Production Facilities	15,621			16,343			30,874			32,664
Intercompany eliminations	(18,413		)	(12,537		)	(28,115		)	(21,334		)
Total	$	201,728		$	204,625		$	368,551		$	368,887

Income (loss) from operations —
Well Intervention	$	26,672		$	34,470		$	36,313		$	48,347
Robotics	2,949			(4,102		)	(955		)	(18,419		)
Production Facilities	4,452			6,866			8,857			14,225
Segment operating income	34,073			37,234			44,215			44,153
Corporate, eliminations and other	(11,001		)	(12,462		)	(20,874		)	(20,497		)
Total	$	23,072		$	24,772		$	23,341		$	23,656

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 are as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018

Well Intervention ⁽¹⁾	$	9,812	$	4,215	$	13,037	$	6,167
Robotics	8,601		8,322		15,078		15,167
Total	$	18,413	$	12,537	$	28,115	$	21,334


(1)	Amounts in 2019 include $5.3 million associated with P&A work that commenced on one of the Droshky wells for our Production Facilities segment (Notes 2 and 13). Upon completion of the P&A work Marathon Oil is contractually obligated to remit payment to us, which is reflected in “Other receivable” in the accompanying condensed consolidated balance sheet (Note 3).

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):



	June 30, 2019		December 31, 2018

Well Intervention	$	2,111,752	$	1,916,638
Robotics	187,401		147,602
Production Facilities	177,230		120,845
Corporate and other	143,839		162,645
Total	$	2,620,222	$	2,347,730