Operations by Business Segment and Geographic Area

12 Months Ended

Dec. 31, 2017

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. 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 energy 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-energy 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, 2017 from those used in our consolidated financial statements for the years ended December 31, 2016 and 2015.

The table that follows presents Revenue, Income from Operations and Depreciation and Amortization Expense by business segment:

	Year Ended December 31,
(in thousands)	2017			2016			2015
Revenue
Oilfield
Remotely Operated Vehicles	$	393,655		$	522,121		$	807,723
Subsea Products	625,513			692,030			959,714
Subsea Projects	291,993			472,979			604,484
Asset Integrity	236,778			275,397			372,957
Total Oilfield	1,547,939			1,962,527			2,744,878
Advanced Technologies	373,568			309,076			317,876
Total	$	1,921,507		$	2,271,603		$	3,062,754
Income from Operations
Oilfield
Remotely Operated Vehicles	$	22,366		$	25,193		$	192,514
Subsea Products	45,539			75,938			175,585
Subsea Projects	10,279			34,476			92,034
Asset Integrity	11,231			7,551			18,235
Total Oilfield	89,415			143,158			478,368
Advanced Technologies	22,039			11,809			9,689
Unallocated Expenses	(100,798		)	(84,203		)	(114,247		)
Total	$	10,656		$	70,764		$	373,810
Depreciation and Amortization Expense
Oilfield
Remotely Operated Vehicles	$	113,979		$	140,967		$	143,364
Subsea Products	52,561			53,759			49,792
Subsea Projects	31,869			34,042			29,863
Asset Integrity	7,715			14,336			10,713
Total Oilfield	206,124			243,104			233,732
Advanced Technologies	3,171			3,120			2,549
Unallocated Expenses	4,224			4,023			4,954
Total	$	213,519		$	250,247		$	241,235

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 2016, we recognized restructuring expenses of $11.6 million, attributable to each reporting segment as follows:

• Remotely Operated Vehicles - $3.8 million;

• Subsea Products - $3.7 million;

• Subsea Projects - $2.1 million;

• Asset Integrity - $1.4 million;

• Advanced Technologies - $0.5 million; and

• Unallocated Expenses - $0.1 million.

The restructuring expenses were all severance costs, of which $8.4 million was unpaid at December 31, 2016 and paid in 2017.

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 and paid in 2016.

During each of 2017, 2016 and 2015, revenue from one customer, BP plc and subsidiaries, accounted for 12%, 18% and 18% of our total consolidated annual revenue, respectively.

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

	December 31,
(in thousands)	2017		2016
Assets
Oilfield
Remotely Operated Vehicles	$	650,832	$	755,894
Subsea Products	788,586		833,919
Subsea Projects	626,791		608,411
Asset Integrity	268,055		261,410
Total Oilfield	2,334,264		2,459,634
Advanced Technologies	129,185		101,756
Corporate and Other	560,501		568,925
Total	$	3,023,950	$	3,130,315
Property and Equipment, net
Oilfield
Remotely Operated Vehicles	$	420,088	$	485,063
Subsea Products	329,486		344,973
Subsea Projects	272,649		273,384
Asset Integrity	19,445		24,571
Total Oilfield	1,041,668		1,127,991
Advanced Technologies	10,850		12,057
Corporate and Other	11,686		13,210
Total	$	1,064,204	$	1,153,258
Goodwill
Oilfield
Remotely Operated Vehicles	$	24,777	$	24,406
Subsea Products	103,128		99,336
Subsea Projects	155,292		154,823
Asset Integrity	150,560		143,144
Total Oilfield	433,757		421,709
Advanced Technologies	21,842		21,842
Total	$	455,599	$	443,551

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)	2017		2016		2015
Capital Expenditures
Oilfield
Remotely Operated Vehicles	$	40,425	$	50,339	$	57,558
Subsea Products	27,711		56,669		69,434
Subsea Projects	29,544		25,602		276,308
Asset Integrity	3,651		3,910		9,841
Total Oilfield	101,331		136,520		413,141
Advanced Technologies	2,063		2,742		5,015
Corporate and Other	1,564		3,251		5,832
Total	$	104,958	$	142,513	$	423,988

Geographic Operating Areas

The following tables summarize certain financial data by geographic area:

	Year Ended December 31,
(in thousands)	2017		2016		2015
Revenue
Foreign:
Africa	$	256,198	$	486,615	$	659,038
United Kingdom	236,177		304,635		367,326
Norway	178,712		166,180		250,272
Asia and Australia	193,865		196,679		245,978
Brazil	42,607		73,280		118,056
Other	81,364		66,870		116,647
Total Foreign	988,923		1,294,259		1,757,317
United States	932,584		977,344		1,305,437
Total	$	1,921,507	$	2,271,603	$	3,062,754

	December 31,
(in thousands)	2017		2016
Property and equipment, net
Foreign:
Norway	$	78,279	$	83,129
Africa	135,345		159,715
United Kingdom	87,601		67,522
Asia and Australia	50,057		61,135
Brazil	50,842		55,224
Other	25,346		22,322
Total Foreign	427,470		449,047
United States	636,734		704,211
Total	$	1,064,204	$	1,153,258

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