Business Segment Information

12 Months Ended

Dec. 31, 2019

Note 15 — 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 reportable 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 Q7000, 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, two robotics support vessels under long-term charter: the Grand Canyon II and the Grand Canyon III, and spot vessels, including the Ross Candies, which is under a flexible charter agreement. We returned the Grand Canyon to its owner during the fourth quarter of 2019. Our Production Facilities segment includes the HP I, the HFRS, our ownership interest in Independence Hub (Note 5) and our ownership of oil and gas properties (Note 1). 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):



	Year Ended December 31,
	2019			2018			2017
Net revenues —
Well Intervention	$	593,300		$	560,568		$	406,341
Robotics	171,672			158,989			152,755
Production Facilities	61,210			64,400			64,352
Intercompany eliminations	(74,273		)	(44,139		)	(42,065		)
Total	$	751,909		$	739,818		$	581,383



Income (loss) from operations —
Well Intervention	$	89,564		$	87,643		$	52,733
Robotics	7,261			(14,054		)	(42,289		)
Production Facilities	17,160			27,263			28,172
Segment operating income	113,985			100,852			38,616
Corporate, eliminations and other	(45,988		)	(49,309		)	(39,746		)
Total	67,997			51,543			(1,130		)
Net interest expense	(8,333		)	(13,751		)	(18,778		)
Other non-operating income (expense), net	5,892			(6,794		)	(464		)
Income (loss) before income taxes	$	65,556		$	30,998		$	(20,372	)



Capital expenditures —
Well Intervention	$	139,212	$	136,164	$	230,354
Robotics	417		151		648
Production Facilities	123		325		—
Corporate and other	1,102		443		125
Total	$	140,854	$	137,083	$	231,127



Depreciation and amortization —
Well Intervention	$	80,153	$	76,943	$	68,301
Robotics	16,459		19,175		23,626
Production Facilities	15,658		14,070		13,936
Corporate and eliminations	450		334		2,882
Total	$	112,720	$	110,522	$	108,745

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):



	Year Ended December 31,
	2019		2018		2017

Well Intervention ⁽¹⁾	$	43,484	$	14,218	$	11,489
Robotics	30,789		29,921		30,576
Total	$	74,273	$	44,139	$	42,065


(1)	Amount in the year ended December 31, 2019 included $27.5 million associated with P&A work on two of the Droshky wells for our Production Facilities segment (Note 16). Marathon Oil has agreed to remit payment to us as the P&A work is completed.

Revenues by individually significant geographic location are as follows (in thousands):



	Year Ended December 31,
	2019		2018		2017

U.S.	$	297,162	$	271,260	$	283,933
U.K.	193,903		194,434		155,954
Brazil	216,796		208,054		70,710
Other	44,048		66,070		70,786
Total	$	751,909	$	739,818	$	581,383

Our operational assets work throughout the year in various regions around the world such as the Gulf of Mexico, Brazil, the North Sea, Asia Pacific and West Africa. The following table provides our property and equipment, net of accumulated depreciation, by individually significant geographic location (in thousands):



	December 31,
	2019		2018

U.S.	$	808,683	$	862,334
U.K. ⁽¹⁾	782,246		236,512
Brazil	281,698		324,083
Singapore ⁽²⁾	10		403,816
Total	$	1,872,637	$	1,826,745


(1)	Includes certain assets that are based in the U.K. but may operate in the North Sea and West Africa regions, including the Q7000 that was delivered to us in November 2019.


(2)	Amount in 2018 primarily included the Q7000 vessel previously under completion at the shipyard in Singapore.

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):



	December 31,
	2019		2018

Well Intervention	$	2,180,180	$	1,916,638
Robotics	151,478		147,602
Production Facilities	142,624		120,845
Corporate and other	122,449		162,645
Total	$	2,596,731	$	2,347,730