Operations by Business Segment and Geographic Area

12 Months Ended

Dec. 31, 2011

Segment Reporting, Measurement Disclosures [Abstract]

Business Segment Information

OPERATIONS BY BUSINESS SEGMENT AND GEOGRAPHIC AREA

Business Segment Information

We are a global oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of our applied technology expertise, we also serve the defense and aerospace industries. Our Oil and Gas business consists of Remotely Operated Vehicles ("ROVs"), Subsea Products, Subsea Projects and Asset Integrity. Our ROV segment provides submersible vehicles operated from the surface to support offshore oil and gas exploration, production and construction activities. Our Subsea Products segment supplies a variety of built-to-order specialty subsea hardware. Our Subsea Projects segment provides multiservice vessels, oilfield diving and support vessel operations, which are used primarily in inspection, repair and maintenance and installation activities, and a mobile offshore production system, through a 50% interest in an entity which holds a 75% interest in the system. With the acquisition of AGR FO in December 2011, we also operate and maintain offshore and onshore oil and gas production facilities, provide subsea engineering services, and operate an offshore logistics supply base in Australia. Our Asset Integrity segment, which was previously named Inspection, provides asset integrity management and assessment services and nondestructive testing and inspection. We renamed Inspection to Asset Integrity to more appropriately describe the services we are providing after our acquisition of AGR FO. Our Advanced Technologies business provides project management, engineering services and equipment for applications in non-oilfield markets. Unallocated Expenses are those not associated with a specific business segment. These consist of expenses related to our incentive and deferred compensation plans, including restricted stock and bonuses, as well as other general expenses, including corporate administrative expenses.

There are no differences in the basis of segmentation or in the basis of measurement of segment profit or loss in the year ended December 31, 2011 from those used in our consolidated financial statements for the years ended December 31, 2010 and 2009, except for the change in the name of Inspection to Asset Integrity.

The table that follows presents Revenue, Income from Operations, Depreciation and Amortization Expense and Equity Earnings of Unconsolidated Affiliates by business segment:

	Year Ended December 31,
(in thousands)	2011			2010			2009
Revenue
Oil and Gas
Remotely Operated Vehicles	$	755,033		$	662,105		$	649,228
Subsea Products	770,212			549,233			487,726
Subsea Projects	167,477			247,538			274,607
Asset Integrity	266,577			223,469			216,140
Total Oil and Gas	1,959,299			1,682,345			1,627,701
Advanced Technologies	233,364			234,700			194,380
Total	$	2,192,663		$	1,917,045		$	1,822,081
Income from Operations
Oil and Gas
Remotely Operated Vehicles	$	224,705		$	211,725		$	207,683
Subsea Products	142,184			108,522			60,526
Subsea Projects	32,662			46,910			75,404
Asset Integrity	30,560			25,893			26,443
Total Oil and Gas	430,111			393,050			370,056
Advanced Technologies	16,661			16,934			12,366
Unallocated Expenses	(111,941		)	(100,484		)	(90,306		)
Total	$	334,831		$	309,500		$	292,116
Depreciation and Amortization Expense
Oil and Gas
Remotely Operated Vehicles	$	100,089		$	86,232		$	68,022
Subsea Products	31,299			27,956			24,133
Subsea Projects	8,024			25,826			19,011
Asset Integrity	5,689			4,098			3,794
Total Oil and Gas	145,101			144,112			114,960
Advanced Technologies	3,134			4,588			2,526
Unallocated Expenses	2,992			4,951			5,459
Total	$	151,227		$	153,651		$	122,945
Equity Earnings of Unconsolidated Affiliates
Subsea Projects	$	3,937		$	2,078		$	3,242
Subsea Products	(136		)	—			—
Total	$	3,801		$	2,078		$	3,242

We determine income from operations for each business segment before interest income or expense, other income (expense) and provision for income taxes. We do not consider an allocation of these items to be practical.

During 2011, we sold the Ocean Legend, a mobile offshore production system. The sale resulted in a gain of $19.6 million, which we recognized as a reduction of the costs of services and products in our Subsea Projects segment.

Depreciation and amortization expense for Subsea Projects in 2010 includes an impairment charge of $5.2 million in the first quarter to reduce the carrying value of our vessel held for sale, The Performer, to its fair value, less estimated costs to sell. In the third quarter of 2010, we sold the vessel for approximately its reduced carrying value.

During 2010, revenue from one customer, BP plc and subsidiaries in our oil and gas business segments, accounted for 12% of our total consolidated revenue. No individual customer accounted for more than 10% of our consolidated revenue during 2011 or 2009.

The following table presents Assets, Property and Equipment and Goodwill by business segment as of the dates indicated:

	December 31,
(in thousands)	2011		2010
Assets
Oil and Gas
Remotely Operated Vehicles	$	861,059	$	774,011
Subsea Products	659,211		511,406
Subsea Projects	338,205		249,259
Asset Integrity	284,159		90,357
Total Oil and Gas	2,142,634		1,625,033
Advanced Technologies	62,627		54,378
Corporate and Other	195,283		351,095
Total	$	2,400,544	$	2,030,506
Property and Equipment, net
Oil and Gas
Remotely Operated Vehicles	$	517,098	$	488,581
Subsea Products	184,911		159,505
Subsea Projects	141,178		109,761
Asset Integrity	30,327		15,238
Total Oil and Gas	873,514		773,085
Advanced Technologies	9,272		6,143
Corporate and Other	10,522		7,145
Total	$	893,308	$	786,373
Goodwill
Oil and Gas
Remotely Operated Vehicles	$	26,908	$	27,125
Subsea Products	112,817		87,492
Asset Integrity	183,292		18,163
Total Oil and Gas	323,017		132,780
Advanced Technologies	10,454		10,454
Total	$	333,471	$	143,234

All assets specifically identified with a particular business segment have been segregated. Cash and cash equivalents, certain other current assets, certain investments and other assets have not been allocated to particular business segments and are included in Corporate and Other.

The following table presents Capital Expenditures, including business acquisitions, by business segment for the periods indicated:

	Year Ended December 31,
(in thousands)	2011		2010		2009
Capital Expenditures
Oil and Gas
Remotely Operated Vehicles	$	135,770	$	109,377	$	146,707
Subsea Products	100,824		41,802		13,694
Subsea Projects	64,803		43,506		2,817
Asset Integrity	212,951		9,551		6,611
Total Oil and Gas	514,348		204,236		169,829
Advanced Technologies	5,757		2,351		3,234
Corporate and Other	6,540		593		1,958
Total	$	526,645	$	207,180	$	175,021

Geographic Operating Areas

The following table summarizes certain financial data by geographic area:

	Year Ended December 31,
(in thousands)	2011		2010		2009
Revenue
Foreign:
Norway	$	310,891	$	212,854	$	230,874
West Africa	284,642		260,377		280,707
United Kingdom	256,565		156,114		156,748
Asia and Australia	217,094		136,518		135,721
Brazil	155,532		135,510		97,401
Other	93,325		72,157		60,610
Total Foreign	1,318,049		973,530		962,061
United States	874,614		943,515		860,020
Total	$	2,192,663	$	1,917,045	$	1,822,081
Long-Lived Assets
Foreign:
Norway	$	436,043	$	165,942	$	170,617
West Africa	120,732		106,028		95,326
United Kingdom	65,830		70,730		63,334
Asia and Australia	72,518		76,835		76,622
Brazil	99,709		79,484		63,653
Other	30,633		28,569		20,490
Total Foreign	825,465		527,588		490,042
United States	552,639		483,078		487,453
Total	$	1,378,104	$	1,010,666	$	977,495

Revenue is based on location where services are performed and products are manufactured.