Business Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Business Segments

11. Business Segments

This footnote was corrected in this Amended Report to remove "Segment depreciation and amortization" and "Segment operating income (loss)" subtotals from the "selected financial data by business segment" table.

Operating segments are defined in FASB ASC Topic 280, Segment Reporting, as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company’s operations are organized into three reportable business segments: Subsea Products, Subsea Services, and Well Construction. The Company evaluates segment performance based on operating income. The accounting policies of the segments are the same as described in the summary of significant accounting policies.

Subsea Products. The Company’s Subsea Products segment designs, manufactures and sells a variety of products including subsea wellheads, connectors and surface equipment, and subsea production systems.

Subsea Services. The Company’s Subsea Services segment delivers a variety of technical services including subsea rental services, subsea rework services and subsea services shared support.

Well Construction. The Company’s Well Construction business provides products and services utilized in the construction of the wellbore such as completions, casing hardware and liner hanger systems. In 2023, the Company acquired Great North and includes its product, service and leasing solutions within the Well Construction segment. Great North offers pressure control and completion solutions, including customized and highly engineered wellhead products for use in heavy oil and thermal production locations, proprietary completion solutions such as the Multi-Well Frac Connector TM, as well as related installation and maintenance services.

During the three months ended March 31, 2024, the Company did not incur any costs under the 2021 global strategic plan. During the three months ended March 31, 2023, the Company incurred $1.7 million of additional costs under the 2021 global strategic plan, all of which is in Corporate.

The following tables presents selected financial data by business segment:

	Three months ended March 31,
	2024			2023
	(In thousands)
Revenue
Subsea products	$	35,332		$	46,117
Subsea services		24,579			23,896
Well construction		50,386			20,852
Total revenue	$	110,297		$	90,865
Depreciation and amortization
Subsea products	$	1,569		$	1,599
Subsea services		2,247			2,754
Well construction		3,867			1,743
Corporate (1)		749			793
Total depreciation and amortization	$	8,432		$	6,889
Operating income (loss)
Subsea products	$	639		$	1,495
Subsea services		1,833			9,384
Well construction		5,632			562
Corporate (1)		(26,906	)		(8,253	)
Total operating income (loss)	$	(18,802	)	$	3,188

(1) Corporate includes the expenses and assets of the Company’s corporate office functions, legal and other administrative expenses that are managed at a consolidated level.

The Company does not allocate assets to its reportable segments as they are not included in the review performed by the Chief Operating Decision Maker (CODM) for purposes of assessing segment performance and allocating resources. The balance sheet is reviewed on a consolidated basis and is not used in the context of segment reporting.