Operations by Business Segment and Geographic Area

12 Months Ended

Dec. 31, 2015

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, aerospace and commercial theme park industries. Our Oilfield 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, development and production activities. Our Subsea Products segment supplies a variety of specialty subsea hardware and related services. Our Subsea Projects segment provides multiservice subsea support vessels and oilfield diving and support vessel operations, primarily for inspection, maintenance and repair and installation activities. Since April 2015, we have also provided survey, autonomous underwater vehicle ("AUV") and satellite-positioning services. Our Asset Integrity segment provides asset integrity management and assessment services and nondestructive testing and inspection. 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, 2015 from those used in our consolidated financial statements for the years ended December 31, 2014 and 2013.

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)	2015			2014			2013
Revenue
Oilfield
Remotely Operated Vehicles	$	807,723		$	1,069,022		$	981,728
Subsea Products	959,714			1,238,746			1,027,792
Subsea Projects	604,484			588,572			509,440
Asset Integrity	372,957			500,237			481,919
Total Oilfield	2,744,878			3,396,577			3,000,879
Advanced Technologies	317,876			263,047			286,140
Total	$	3,062,754		$	3,659,624		$	3,287,019
Income from Operations
Oilfield
Remotely Operated Vehicles	$	192,514		$	320,550		$	281,973
Subsea Products	175,585			281,239			231,050
Subsea Projects	92,034			107,852			93,865
Asset Integrity	18,235			55,469			55,243
Total Oilfield	478,368			765,110			662,131
Advanced Technologies	9,689			13,230			24,954
Unallocated Expenses	(114,247		)	(150,010		)	(141,969		)
Total	$	373,810		$	628,330		$	545,116
Depreciation and Amortization Expense
Oilfield
Remotely Operated Vehicles	$	143,364		$	145,691		$	128,310
Subsea Products	49,792			46,085			39,964
Subsea Projects	29,863			18,561			15,331
Asset Integrity	10,713			12,775			12,401
Total Oilfield	233,732			223,112			196,006
Advanced Technologies	2,549			2,574			2,682
Unallocated Expenses	4,954			4,093			3,540
Total	$	241,235		$	229,779		$	202,228

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 2015, we recognized restructuring expenses of $25.4 million, attributable to each reporting segment as follows:

• Remotely Operated Vehicles - $7.2 million;

• Subsea Products - $8.7 million;

• Subsea Projects - $2.5 million;

• Asset Integrity - $6.4 million;

• Advanced Technologies - $0.2 million; and

• Unallocated Expenses - $0.4 million.

The restructuring expenses consisted substantially of severance costs that totaled $23.1 million during the year, of which $7.0 million was unpaid at December 31, 2015.

During each of 2015, 2014 and 2013, revenue from one customer, BP plc and subsidiaries, accounted for 18% of our total consolidated annual revenue.

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

	December 31,
(in thousands)	2015		2014
Assets
Oilfield
Remotely Operated Vehicles	$	951,001	$	1,148,680
Subsea Products	890,041		904,935
Subsea Projects	671,019		448,378
Asset Integrity	295,955		347,411
Total Oilfield	2,808,016		2,849,404
Advanced Technologies	97,764		86,203
Corporate and Other	523,756		569,333
Total	$	3,429,536	$	3,504,940
Property and Equipment, net
Oilfield
Remotely Operated Vehicles	$	580,315	$	693,240
Subsea Products	348,042		336,125
Subsea Projects	277,695		214,478
Asset Integrity	35,359		41,624
Total Oilfield	1,241,411		1,285,467
Advanced Technologies	12,614		8,780
Corporate and Other	12,706		11,575
Total	$	1,266,731	$	1,305,822
Goodwill
Oilfield
Remotely Operated Vehicles	$	24,344	$	25,458
Subsea Products	88,279		99,656
Subsea Projects	149,389		19,712
Asset Integrity	143,018		164,806
Total Oilfield	405,030		309,632
Advanced Technologies	21,842		21,842
Total	$	426,872	$	331,474

All assets specifically identified with a particular business segment have been segregated. Cash and cash equivalents, certain other current assets, certain investments and certain 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)	2015		2014		2013
Capital Expenditures
Oilfield
Remotely Operated Vehicles	$	57,558	$	188,848	$	225,885
Subsea Products	69,434		112,851		102,653
Subsea Projects	276,308		91,918		40,833
Asset Integrity	9,841		27,027		8,327
Total Oilfield	413,141		420,644		377,698
Advanced Technologies	5,015		2,352		13,175
Corporate and Other	5,832		3,675		2,717
Total	$	423,988	$	426,671	$	393,590

Geographic Operating Areas

The following table summarizes certain financial data by geographic area:

	Year Ended December 31,
(in thousands)	2015		2014		2013
Revenue
Foreign:
Africa	$	659,038	$	795,229	$	696,202
United Kingdom	367,326		456,804		383,397
Norway	250,272		488,789		461,915
Asia and Australia	245,978		317,277		335,129
Brazil	118,056		185,299		213,282
Other	116,647		98,881		90,456
Total Foreign	1,757,317		2,342,279		2,180,381
United States	1,305,437		1,317,345		1,106,638
Total	$	3,062,754	$	3,659,624	$	3,287,019
Long-Lived Assets
Foreign:
Norway	$	274,868	$	332,503	$	429,603
Africa	205,440		215,122		186,865
United Kingdom	138,327		113,191		99,250
Asia and Australia	71,438		90,061		83,885
Brazil	57,896		99,269		112,840
Other	43,128		56,079		38,516
Total Foreign	791,097		906,225		950,959
United States	1,070,841		838,273		691,404
Total	$	1,861,938	$	1,744,498	$	1,642,363

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