Business Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business Segment Information

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 segment for financial reporting purposes. Our Well Intervention segment provides services enabling our customers to safely access offshore wells for the purpose of performing production enhancement or decommissioning operations 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 Siem Helix 1 and Siem Helix 2 chartered vessels. Our well intervention equipment includes intervention systems, some of which we provide on a stand-alone basis. Our Robotics segment provides offshore construction, trenching, seabed clearance and IRM services to both the oil and gas and the renewable energy markets globally. Additionally, our Robotics services are used in and complement our well intervention services. Our Robotics segment includes ROVs, trenchers and robotics support vessels under long-term charter as well as spot vessels as needed. Our Production Facilities segment includes the HP I, the HFRS and our ownership of oil and gas properties (Note 16). 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,
	2021		2020		2019
Net revenues —
Well Intervention	$	516,564	$	539,249	$	593,300
Robotics		137,295		178,018		171,672
Production Facilities		69,348		58,303		61,210
Intercompany eliminations		(48,479)		(42,015)		(74,273)
Total	$	674,728	$	733,555	$	751,909
Income (loss) from operations —
Well Intervention	$	(35,882)	$	26,855	$	89,564
Robotics		5,762		13,755		7,261
Production Facilities		22,906		15,975		17,160
Segment operating income (loss)		(7,214)		56,585		113,985
Goodwill impairment (1)		—		(6,689)		—
Corporate, eliminations and other		(41,473)		(36,871)		(45,988)
Total	$	(48,687)	$	13,025	$	67,997
Net interest expense		(23,201)		(28,531)		(8,333)
Other non-operating income (expense), net		1,246		16,889		5,892
Income (loss) before income taxes	$	(70,642)	$	1,383	$	65,556
Capital expenditures —
Well Intervention	$	2,349	$	19,523	$	139,212
Robotics		120		257		417
Production Facilities		6,770		—		123
Corporate, eliminations and other		(917)		464		1,102
Total	$	8,322	$	20,244	$	140,854
Depreciation and amortization —
Well Intervention	$	107,551	$	101,756	$	80,153
Robotics		15,158		15,952		16,459
Production Facilities		19,465		15,652		15,658
Corporate and eliminations		(660)		349		450
Total	$	141,514	$	133,709	$	112,720

(1) Relates to the impairment of the entire STL goodwill balance (Note 7).

Intercompany segment amounts are derived primarily from equipment and services provided to other business segments. Intercompany segment revenues are as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Well Intervention (1)	$	21,521	$	15,039	$	43,484
Robotics		26,958		26,976		30,789
Total	$	48,479	$	42,015	$	74,273

(1) Amount for the year ended December 31, 2019 included $27.5 million associated with the P&A work on our oil and gas properties in our Production Facilities segment (Note 16).

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

	Year Ended December 31,
	2021		2020		2019
U.S.	$	232,661	$	304,563	$	297,162
U.K.		100,154		133,005		193,903
Brazil		154,326		208,565		216,796
West Africa		126,856		41,840		646
Other		60,731		45,582		43,402
Total	$	674,728	$	733,555	$	751,909

Our operational assets work 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 where those assets are based (in thousands):

	December 31,
	2021		2020
U.S.	$	693,062	$	750,986
U.K. (1)		713,385		764,070
Brazil (2)		251,194		267,896
Singapore		4		12
Total	$	1,657,645	$	1,782,964

(1) Includes the Q7000 and certain other assets that are based in the U.K. but are currently operating in West Africa and may also operate in the North Sea, Asia Pacific and other regions.

(2) Includes the equipment on the Siem Helix 1 chartered vessel and certain other assets that are based in Brazil but are currently operating in West Africa and may also operate in the North Sea, Asia Pacific and other regions.

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,		December 31,
	2021		2020
Well Intervention	$	2,012,214	$	2,134,081
Robotics		96,249		132,550
Production Facilities		119,004		129,773
Corporate and other		98,561		101,874
Total	$	2,326,028	$	2,498,278