Dispositions and Discontinued Operations

6 Months Ended

Jun. 30, 2011

Dispositions and Discontinued Operations [Abstract]

Dispositions and Discontinued Operations

5. Dispositions and Discontinued Operations

Dispositions

     From time to time the Company enters into agreements to sell assets. The following table provides information related to the sale of several of the Company’s assets during the six months ended June 30, 2011 and 2010 (in thousands):

Rig	Segment	Period of Sale	Proceeds		Gain/(Loss)
2011:
Hercules 78	Domestic Offshore	May 2011	$	1,700	$	20
Various(a)	Delta Towing	May 2011		30,000		(13,359	)
			$	31,700	$	(13,339	)
2010:
Various(b)	Inland	March 2010	$	2,200	$	1,753
Various(b)	Inland	April 2010		800		410
Hercules 191	Domestic Offshore	April 2010		5,000		3,067
			$	8,000	$	5,230

(a)	The Company completed the sale of substantially all of Delta Towing’s assets.
(b)	The Company entered into an agreement to sell six of its retired barges for $3.0 million. The sale of 3 barges closed in each of March and April 2010.

     In November 2010, the Company entered into an agreement to sell its retired jackups Hercules 190 and Hercules 254 for a total of $4.0 million for both jackups, which is expected to close in the third quarter of 2011. The financial information for Hercules 190 and Hercules 254 has been reported as part of the Domestic Offshore segment.

     In July 2011, the Company sold Hercules 152 for gross proceeds of $5.0 million. The financial information for Hercules 152 has been reported as part of the Domestic Offshore segment.

Discontinued Operations

     In May 2011, the Company completed the sale of substantially all of Delta Towing’s assets and certain liabilities for aggregate consideration of $30 million in cash (the “Delta Towing Sale”) and recognized a loss on the sale of approximately $13 million. The Company retained the working capital of its Delta Towing business which was approximately $6 million at the date of sale. The results of operations of the Delta Towing segment are reflected in the Consolidated Statements of Operations for the three and six months ended June 30, 2011 and 2010 as discontinued operations.

     Interest charges have been allocated to the discontinued operations of the Delta Towing segment in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 205-20, Discontinued Operations. The interest was allocated based on a pro rata calculation of the net Delta Towing assets sold to the Company’s consolidated net assets. Interest allocated to discontinued operations was $0.3 million and $0.8 million for the three and six months ended June 30, 2011, respectively, and $0.6 million and $1.3 million for the three and six months ended June 30, 2010, respectively.

     Operating results of the Delta Towing segment were as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenue	$	2,954		$	7,997		$	9,822		$	14,286
Loss Before Income Taxes	$	(14,823	)	$	(920	)	$	(15,787	)	$	(2,533	)
Income Tax Benefit		5,696			370			6,084			1,018
Loss from Discontinued Operations, Net of Taxes	$	(9,127	)	$	(550	)	$	(9,703	)	$	(1,515	)

     The carrying value of the assets included in the Delta Towing Sale are as follows:

	May 13,		December 31,
	2011		2010
	(In thousands)
Property and Equipment, Net and Related Assets	$	43,359	$	44,249

     The three and six months ended June 30, 2011 include a loss of $13.4 million, or $8.2 million net of taxes, in connection with the Delta Towing Sale.