Operations by Business Segment and Geographic Area

12 Months Ended

Dec. 31, 2012

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 principally in inspection, maintenance and repair and installation activities, and a mobile offshore production system, through a 50% interest in an entity that holds a 75% interest in the system. With the acquisition we made 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 in December 2011. 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, 2012 from those used in our consolidated financial statements for the years ended December 31, 2011 and 2010, 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)	2012			2011			2010
Revenue
Oil and Gas
Remotely Operated Vehicles	$	853,520		$	755,033		$	662,105
Subsea Products	829,034			770,212			549,233
Subsea Projects	379,571			167,477			247,538
Asset Integrity	435,381			266,577			223,469
Total Oil and Gas	2,497,506			1,959,299			1,682,345
Advanced Technologies	285,098			233,364			234,700
Total	$	2,782,604		$	2,192,663		$	1,917,045
Income from Operations
Oil and Gas
Remotely Operated Vehicles	$	248,972		$	224,705		$	211,725
Subsea Products	170,959			142,184			108,522
Subsea Projects	63,461			32,662			46,910
Asset Integrity	45,196			30,560			25,893
Total Oil and Gas	528,588			430,111			393,050
Advanced Technologies	21,182			16,661			16,934
Unallocated Expenses	(121,173		)	(111,941		)	(100,484		)
Total	$	428,597		$	334,831		$	309,500
Depreciation and Amortization Expense
Oil and Gas
Remotely Operated Vehicles	$	108,933		$	100,089		$	86,232
Subsea Products	36,638			31,299			27,956
Subsea Projects	13,340			8,024			25,826
Asset Integrity	11,808			5,689			4,098
Total Oil and Gas	170,719			145,101			144,112
Advanced Technologies	2,677			3,134			4,588
Unallocated Expenses	3,087			2,992			4,951
Total	$	176,483		$	151,227		$	153,651
Equity Earnings of Unconsolidated Affiliates
Subsea Projects	$	1,673		$	3,801		$	2,078
Total	$	1,673		$	3,801		$	2,078

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 2012 and 2010, revenue from one customer, BP plc and subsidiaries in our oil and gas business segments, accounted for 13% and 12% of our total consolidated revenue, respectively. No individual customer accounted for more than 10% of our consolidated revenue during 2011.

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

	December 31,
(in thousands)	2012		2011
Assets
Oil and Gas
Remotely Operated Vehicles	$	1,017,772	$	861,059
Subsea Products	727,703		659,211
Subsea Projects	316,353		338,205
Asset Integrity	404,137		284,159
Total Oil and Gas	2,465,965		2,142,634
Advanced Technologies	73,908		62,627
Corporate and Other	228,245		195,283
Total	$	2,768,118	$	2,400,544
Property and Equipment, net
Oil and Gas
Remotely Operated Vehicles	$	597,770	$	517,098
Subsea Products	213,536		184,911
Subsea Projects	157,755		141,178
Asset Integrity	33,503		30,327
Total Oil and Gas	1,002,564		873,514
Advanced Technologies	9,194		9,272
Corporate and Other	13,374		10,522
Total	$	1,025,132	$	893,308
Goodwill
Oil and Gas
Remotely Operated Vehicles	$	27,428	$	26,908
Subsea Products	120,332		112,817
Asset Integrity	204,979		183,292
Total Oil and Gas	352,739		323,017
Advanced Technologies	10,454		10,454
Total	$	363,193	$	333,471

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)	2012		2011		2010
Capital Expenditures
Oil and Gas
Remotely Operated Vehicles	$	198,323	$	135,770	$	109,377
Subsea Products	68,052		100,824		41,802
Subsea Projects	15,890		64,803		43,506
Asset Integrity	18,560		212,951		9,551
Total Oil and Gas	300,825		514,348		204,236
Advanced Technologies	2,953		5,757		2,351
Corporate and Other	6,080		6,540		593
Total	$	309,858	$	526,645	$	207,180

Geographic Operating Areas

The following table summarizes certain financial data by geographic area:

	Year Ended December 31,
(in thousands)	2012		2011		2010
Revenue
Foreign:
West Africa	$	463,227	$	284,642	$	260,377
Norway	461,863		310,891		212,854
United Kingdom	334,319		256,565		156,114
Asia and Australia	290,821		217,094		136,518
Brazil	164,660		155,532		135,510
Other	112,486		93,325		72,157
Total Foreign	1,827,376		1,318,049		973,530
United States	955,228		874,614		943,515
Total	$	2,782,604	$	2,192,663	$	1,917,045
Long-Lived Assets
Foreign:
Norway	$	474,408	$	436,043	$	165,942
West Africa	141,927		120,732		106,028
United Kingdom	85,434		65,830		70,730
Asia and Australia	65,012		72,518		76,835
Brazil	113,829		99,709		79,484
Other	34,105		30,633		28,569
Total Foreign	914,715		825,465		527,588
United States	607,572		552,639		483,078
Total	$	1,522,287	$	1,378,104	$	1,010,666

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