Dispositions and Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Dispositions and Discontinued Operations

Dispositions and Discontinued Operations

From time to time the Company enters into agreements to sell assets. The following table provides information related to a sale of the Company’s assets, excluding other miscellaneous asset sales that occur in the normal course of business, during the six months ended June 30, 2012:

Asset		Segment	Period of Sale	Proceeds		Gain/(Loss)
				(in thousands)
2012:
	Hercules 2501	Domestic Offshore	June 2012	$	7,000	$	5,465

Discontinued Operations

In May 2013, the Company entered into an agreement to sell eleven inland barge rigs, comprising the majority of the Inland segment fleet, and related assets for $45 million, and in July 2013 the Company closed on the sale of these Inland assets. The Company retained working capital of its Inland business which was approximately $6.4 million as of June 30, 2013. Additionally, the Company has a separate agreement to sell its Hercules 27 inland barge for $5.0 million, which is expected to occur in the third quarter of 2013. In the second quarter of 2013, the Company recorded an impairment charge of $40.9 million ($40.7 million, net of tax) related to the sale of the Inland barges. The results of operations of the Inland segment are reflected in the Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012 as discontinued operations.

In June 2013, the Company entered into an agreement to sell its U.S. Gulf of Mexico Liftboats and related assets. As a result of this transaction, the Company recorded an impairment charge of $3.5 million ($3.5 million, net of tax). On July 1, 2013, the Company closed on the sale of the liftboats and related assets and received proceeds of approximately $54.4 million. The Company retained working capital of its Domestic Liftboats business which was approximately $6.1 million as of June 30, 2013. The results of operations of the Domestic Liftboats segment are reflected in the Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012 as discontinued operations.

Interest charges have been allocated to the discontinued operations of the Inland and Domestic Liftboat segments in accordance with FASB ASC 205-20, Discontinued Operations. The interest was allocated based on a pro rata calculation of the net assets sold as compared to the Company’s consolidated net assets. Interest allocated to discontinued operations of the Inland segment was $0.5 million and $1.3 million for the three and six months ended June 30, 2013, respectively, and $0.9 million and $1.9 million for the three and six months ended June 30, 2012, respectively. Interest allocated to discontinued operations of the Domestic Liftboat segment was $0.6 million and $1.2 million for the three and six months ended June 30, 2013, respectively, and $0.7 million and $1.5 million for the three and six months ended June 30, 2012, respectively.

Operating results included in discontinued operations were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Inland:
Revenue	$	9,924		$	8,211		$	14,272		$	12,544
Loss Before Income Taxes	$	(39,888	)	$	(4,415	)	$	(44,673	)	$	(9,071	)
Income Tax Benefit (Provision)	(176		)	1,898			174			3,899
Loss from Discontinued Operations, Net of Taxes	$	(40,064	)	$	(2,517	)	$	(44,499	)	$	(5,172	)
Domestic Liftboats:
Revenue	$	14,841		$	16,242		$	29,625		$	26,673
Loss Before Income Taxes	$	(3,889	)	$	(148	)	$	(4,590	)	$	(3,235	)
Income Tax Benefit	—			53			—			1,153
Loss from Discontinued Operations, Net of Taxes	$	(3,889	)	$	(95	)	$	(4,590	)	$	(2,082	)
Total:
Revenue	$	24,765		$	24,453		$	43,897		$	39,217
Loss Before Income Taxes	$	(43,777	)	$	(4,563	)	$	(49,263	)	$	(12,306	)
Income Tax Benefit (Provision)	(176		)	1,951			174			5,052
Loss from Discontinued Operations, Net of Taxes	$	(43,953	)	$	(2,612	)	$	(49,089	)	$	(7,254	)

The carrying amounts, $44.3 million for Inland and $54.5 million for Domestic Liftboats, of the major classes of assets associated with discontinued operations were Property and Equipment and related assets and are included in Assets Held for Sale on the Consolidated Balance Sheet at June 30, 2013.