Long-Term Contracts

9 Months Ended

Sep. 30, 2012

Long-Term Contracts [Abstract]

Long-Term Contracts

(1) Long-Term Contracts

In 2010, the Company’s wholly owned subsidiary, Wild Well Control, Inc. (Wild Well), acquired 100% ownership of Shell Offshore, Inc.’s Gulf of Mexico Bullwinkle platform and its related assets, and assumed the related decommissioning obligations.  In accordance with the asset purchase agreement with Shell Offshore, Inc., Wild Well obtained a $50.0 million performance bond and funded  $50.0 million into an escrow account.  Included in intangible and other long-term assets, net is escrowed cash of $50.4 million and $50.2 million at September 30, 2012 and December 31, 2011, respectively. 

In December 2007, Wild Well entered into contractual arrangements pursuant to which it decommissionedseven downed oil and gas platforms and related well facilities located in the Gulf of Mexico for a fixed sum of $750 million.  The contract contained certain covenants primarily related to Wild Well’s performance of the work.  As of September 30, 2012,  the work on this project was complete, and all amounts to be collected are included in accounts receivable in the consolidated balance sheet.  At December 31, 2011, there were approximately $129.7 million of costs and estimated earnings in excess of billings related to this contract included in other current assets.