Dispositions and Discontinued Operations

9 Months Ended

Sep. 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 the sale of several of the Company’s assets, excluding other miscellaneous asset sales that occur in the normal course of business, during the nine months ended September 30, 2013 and 2012:

Asset		Segment	Period of Sale	Proceeds		Gain/(Loss) (a)
				(in thousands)
2013:
	Various (b)	Domestic Liftboats	July 2013	$	54,447	$	—
	Various (c)	Inland	July 2013	44,331		—
	Hercules 27	Inland	August 2013	5,149		4,834
				$	103,927	$	4,834
2012:
	Hercules 2501	Domestic Offshore	June 2012	$	7,000	$	5,465
	Hercules 29	Inland	July 2012	900		770
	Platform Rig 3 (d)	International Offshore	August 2012	35,516		18,350
	Hercules 101	Domestic Offshore	September 2012	1,200		—
				$	44,616	$	24,585

  _____________________

(a) Gains (Losses) on the Domestic Liftboats and Inland segments are reflected in the Consolidated Statement of Operations as discontinued operations.

(b) The Company completed the sale of its U.S. Gulf of Mexico liftboats and related assets.

(c) The Company completed the sale of eleven inland barge rigs and related assets.

(d) This represents the gain on the sale of Platform Rig 3 and related legal entities.

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. Additionally, in August 2013, the Company sold the Hercules 27 inland barge for approximately $5.1 million. 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 nine months ended September 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) in the second quarter of 2013. 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 results of operations of the Domestic Liftboats segment are reflected in the Consolidated Statements of Operations for the three and nine months ended September 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 $0.1 million and $1.4 million for the three and nine months ended September 30, 2013, respectively, and $0.9 million and $2.8 million for the three and nine months ended September 30, 2012, respectively. Interest allocated to discontinued operations of the Domestic Liftboat segment was $1.2 million for the nine months ended September 30, 2013 and $0.7 million and $2.1 million for the three and nine months ended September 30, 2012, respectively.

Operating results included in discontinued operations were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013			2012
	(in thousands)
Inland:
Revenue	$	1,510	$	7,363		$	15,782		$	19,907
Income (Loss) Before Income Taxes	$	5,192	$	(3,168	)	$	(39,481	)	$	(12,245	)
Income Tax Benefit	2,397		1,273			2,571			4,920
Income (Loss) from Discontinued Operations, Net of Taxes	$	7,589	$	(1,895	)	$	(36,910	)	$	(7,325	)
Domestic Liftboats:
Revenue	$	—	$	17,368		$	29,625		$	43,761
Income (Loss) Before Income Taxes	$	504	$	1,866		$	(4,086	)	$	(839	)
Income Tax Benefit (Provision)	—		(663		)	—			298
Income (Loss) from Discontinued Operations, Net of Taxes	$	504	$	1,203		$	(4,086	)	$	(541	)
Total:
Revenue	$	1,510	$	24,731		$	45,407		$	63,668
Income (Loss) Before Income Taxes	$	5,696	$	(1,302	)	$	(43,567	)	$	(13,084	)
Income Tax Benefit	2,397		610			2,571			5,218
Income (Loss) from Discontinued Operations, Net of Taxes	$	8,093	$	(692	)	$	(40,996	)	$	(7,866	)