Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

We adopted ASC

606,

“Revenue from Contracts with Customers,” or ASC

606,

as of

January 1, 2018.

We applied ASC

606

retrospectively after the Effective Date of our emergence from bankruptcy on

November 14, 2017

using the following practical expedients allowed by the standard:

●

Contracts that ended prior to

December 31, 2017

were

not

restated.

●

For reporting periods prior to

January 1, 2018,

we did

not

disclose the transaction price allocated to any remaining performance obligations related to open contracts as of

December 31, 2017

or our expected timing on revenue recognition.

The adoption of ASC

606

primarily resulted in an immaterial change in the classification of reimbursable expenses we incurred on behalf of our customers. Prior to the adoption of ASC

606

the reimbursable revenues recognized and expenses incurred on behalf of our customers were classified on a gross basis in the statement of operations. After adopting ASC

606

only the fee that we earn is recorded as revenue.

Revenue is measured based on the consideration specified in a contract with a customer. Our charter hire contracts contain a single performance obligation. We generate revenue by providing a specific vessel along with a crew that both operates and maintains the vessel contracted by the customer and supports the offshore activities of the customer. In exchange we receive a daily contractual charter rate. Currently, contractual charter terms range from several days to

five

years. We recognize revenue over time as the customer simultaneously receives and consumes the benefits of the offshore marine support services we provide. Generally, our right to consideration from our customers corresponds directly with the value to the customer of our performance to date for substantially all our revenues. Accordingly, we usually recognize revenue as invoiced for vessel charter services. Payments for services rendered do

not

have a financing component as they are typically due from the customer within

days from the invoice date.

Taxes assessed by a governmental authority related to specific revenue producing transactions and collected by us from customers are excluded from revenue. We operate our business in

three

segments (see Note

): the North Sea, Southeast Asia and the Americas. Revenue in each of these segments is provided below.

	Successor								Predecessor
	Three months ended June 30, 2018								Three months ended June 30, 2017
	North Sea		Southeast Asia		Americas		Total		North Sea		Southeast Asia		Americas		Total
Services
Charter hire revenues	$	16,637	$	1,646	$	7,753	$	26,036	$	14,687	$	2,052	$	7,041	$	23,780
Management fees and reimbursables		212		23		182		417		252		89		520		861
	$	16,849	$	1,669	$	7,935	$	26,453	$	14,939	$	2,141	$	7,561	$	24,641

	Successor								Predecessor
	Six months ended June 30, 2018								Six months ended June 30, 2017
	North Sea		Southeast Asia		Americas		Total		North Sea		Southeast Asia		Americas		Total
Services
Charter hire revenues	$	31,861	$	3,568	$	14,529	$	49,958	$	28,381	$	5,124	$	14,216	$	47,721
Management fees and reimbursables		410		38		413		861		553		185		541		1,279
	$	32,271	$	3,606	$	14,942	$	50,819	$	28,934	$	5,309	$	14,757	$	49,000

In the North Sea, we manage

three

vessels for

third

-party owners and receive a fee for providing support services ranging from chartering assistance to full operational management. These managed vessels only provide a small direct financial contribution and are included in the North Sea revenues under management fees and reimbursables.

Costs of obtaining contracts

We expense the incremental costs of obtaining contracts when incurred if the amortization period of the assets that we otherwise would have recognized is

one

year or less. The incremental costs of obtaining charter hire contracts that have greater than a

one

-year term are deferred and amortized over the term of the related charter hire contract. As of

June 30, 2018,

we have

not

deferred any incremental costs of obtaining contracts.

Costs of fulfilling contracts

–

We immediately expense the cost of fulfilling contracts unless these costs: (i) relate directly to an existing contract; (ii) generate or enhance resources that will be used to satisfy performance obligations in the future; and (iii) are expected to be recovered. As of

June 30, 2018,

we have

not

deferred any contract fulfillment costs.

Contract assets and liabilities

We occasionally receive an upfront fee (mobilization fee) to cover the costs associated with moving the vessel and crew to the operating location and its return. These fees are recorded as a contract liability and amortized over the term of the related contract. We received

61,000

in upfront fees during the

three

- and

six

-month periods ended

June 30, 2018

which were amortized over the term of the related contract.

Cash Flow Statement [Policy Text Block]

Cash Flow

Statement

November 2016,

the FASB issued Accounting Standards Update, or ASU,

2016

18,

“Statement of Cash Flows (Topic

230

): Restricted Cash.” ASU

2016

requires that a statement of cash flows explain the change during the period in the combined total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Under the new standard, cash, cash equivalents, restricted cash and restricted cash equivalents are combined and the beginning-of-period and end-of-period combined totals are reconciled on the statement of cash flows. We adopted ASU

2016

as of

January 1, 2018

and applied it retrospectively to the periods presented in our condensed consolidated statements of cash flows. Our

December 31, 2017

condensed consolidated balance sheet included restricted cash of

$3.5

million under “Deferred costs and other assets” related primarily to cash-backed performance bonds associated with

two

vessels operating in our Americas segment. These performance bonds were released during the

first

quarter of

2018

and there is

restricted cash on our condensed consolidated balance sheet as of

June 30, 2018.

In addition, there were

restricted cash balances on our condensed consolidated balance sheets at the beginning or at the end of the

six

-month period ended

June 30, 2017.

The adoption of ASU

2016

resulted in a

$3.5

million increase in net cash used in operating activities for the

six

months ended

June 30, 2018.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

Basic Earnings Per Share, or EPS, is computed by dividing net income (loss) by the weighted average number of shares of our common stock, par value

$0.01

per share, or Common Stock, outstanding during the period. Diluted EPS is computed using the treasury stock method for Common Stock equivalents.