Business Segment Information

9 Months Ended

Sep. 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. Our Robotics segment includes ROVs, trenchers and a ROVDrill, which are designed to complement offshore construction and well intervention services, three robotics support vessels under long-term charter: the Grand Canyon, the Grand Canyon II and the Grand Canyon III, and spot vessels, including the Ross Candies, which is under a flexible charter agreement. 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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net revenues —
Well Intervention	$	170,206		$	154,441		$	451,511		$	445,769
Robotics	51,909			54,340			136,396			120,569
Production Facilities	13,777			15,877			44,651			48,541
Intercompany eliminations	(23,283		)	(12,083		)	(51,398		)	(33,417		)
Total	$	212,609		$	212,575		$	581,160		$	581,462

Income (loss) from operations —
Well Intervention	$	37,689		$	34,427		$	74,002		$	82,774
Robotics	8,876			5,601			7,921			(12,818		)
Production Facilities	3,050			6,694			11,907			20,919
Segment operating income	49,615			46,722			93,830			90,875
Corporate, eliminations and other	(10,617		)	(15,345		)	(31,491		)	(35,842		)
Total	$	38,998		$	31,377		$	62,339		$	55,033

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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Well Intervention ⁽¹⁾	$	15,318	$	4,379	$	28,355	$	10,546
Robotics	7,965		7,704		23,043		22,871
Total	$	23,283	$	12,083	$	51,398	$	33,417


(1)	Amounts in the three- and nine-month periods ended September 30, 2019 included $10.6 million and $15.9 million, respectively, associated with P&A work on 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.

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, 2019		December 31, 2018

Well Intervention	$	2,133,205	$	1,916,638
Robotics	183,125		147,602
Production Facilities	159,225		120,845
Corporate and other	137,956		162,645
Total	$	2,613,511	$	2,347,730