Impairment Charge

6 Months Ended

Jun. 30, 2011

Impairment Charge [Abstract]

IMPAIRMENT CHARGE

(3) IMPAIRMENT CHARGE

Goodwill

     Our goodwill consists of $34.5 million related to acquisitions in the North Sea region. The determination of impairment of all long-lived assets, goodwill, and intangibles is conducted when indicators of impairment are present and at least annually for goodwill. Impairment testing for goodwill is performed on a reporting unit basis.

     On July 1, 2008, we acquired a 100% ownership interest in a company that operated a large U.S. Gulf of Mexico vessel fleet for $554.7 million, which included $97.7 million of goodwill. We included this acquisition in our Americas segment. In the second quarter of 2010, we assessed our Americas region goodwill for impairment. In our assessment, we evaluated the impact on the segment’s fair value of events in the U.S. Gulf of Mexico, which included the April 20, 2010 explosion and fire on a deepwater drilling rig, the resulting oil spill and the U.S. Department of Interior moratorium on deepwater drilling. We determined, based on our evaluations and testing as prescribed under U.S. GAAP, that an impairment of our Americas region goodwill existed. As a result, we recorded a $97.7 million impairment charge as of June 30, 2010, reflecting all of our Americas region goodwill. The non-cash charge did not impact our liquidity or debt covenant compliance.