(

)

NEW ACCOUNTING PRONOUNCEMENTS

February 2016,

the FASB issued ASU

2016

02,

“Leases” to increase transparency and comparability among organizations by recognizing all leases on the balance sheet and disclosing key information about leasing arrangements. In

January 2018,

the FASB issued a Proposed ASU to provide targeted improvements to ASU

2016

02,

which (i) provides for a new transition method whereby companies

may

elect to adopt ASU

2016

prospectively in the period of adoption and (ii) provides lessors with a practical expedient

not

to separate non-lease and lease components. The main difference between current accounting standards and ASU

2016

is the recognition of assets and liabilities by lessees for those leases classified as operating leases under current accounting standards. While we are continuing to assess all potential impacts of these standards, we expect the measurement and recording of our revenues related to the offshore marine support and transportation services to remain substantially unchanged. However, the actual revenue recognition treatment required under the new standard

may

be dependent on contract-specific terms and

may

vary in some instances. With respect to leases where we are the lessee, we expect to recognize right of use assets and lease liabilities for these leases. The new standard is effective for fiscal years beginning after

December 15, 2018.

We intend to adopt the new lease standard on

January 1, 2019.

August 2016,

the FASB issued ASU

2016

15,

“Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments.” The objective of the new standard is to eliminate diversity in practice related to the classification of certain cash receipts and payments by adding or clarifying guidance on

eight

classification issues related to the statement of cash flows. This standard is effective for annual and interim periods in fiscal years beginning after

December 15, 2017.

The adoption of this standard on

January 1, 2018

did

not

have a material effect on our financial condition or results of operations. The standard was applied retrospectively to all periods presented.

October 2016,

the FASB issued ASU

2016

16,

“Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory.” This standard requires recognition of tax consequences in the period in which a transfer takes place, with the exception of inventory transfers. There will be an immediate effect on earnings if the tax rates in the tax jurisdictions of the selling entity and buying entity are different. The adoption of this standard on

January 1, 2018

did

not

have a material effect on our financial condition or results of operations.

January 2017,

the FASB issued ASU

2017

01,

“Business Combinations - Clarifying the Definition of a Business” to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The adoption of this standard on

January 1, 2018

did

not

have a material effect on our financial condition or results of operations.

March 2017,

the FASB issued ASU

2017

07,

“Compensation-Retirement Benefits,” to improve statement of operations presentation of the components of the net periodic pension cost related to defined benefit plans. The adoption of this standard on

January 1, 2018

did

not

have a material effect on our financial condition or results of operations.