Business Segment Information

9 Months Ended

Sep. 30, 2019

Segment Reporting, Measurement Disclosures [Abstract]

BUSINESS SEGMENT INFORMATION

We are a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of our applied technology expertise, we also serve the defense, aerospace and commercial theme park industries. Our Energy Services and Products business consists of 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 offshore diving and support vessel operations, primarily for inspection, maintenance and repair and installation activities. We also provide survey, autonomous underwater vehicle and satellite-positioning services. For the renewable energy markets, we provide seabed preparation, route clearance and trenching services for submarine cables. Our Asset Integrity segment provides asset integrity management and assessment services, nondestructive testing and inspection. Our Advanced Technologies business provides project management, engineering services and equipment for applications in non-energy industries. 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 from those used in our consolidated financial statements for the year ended December 31, 2018.

The table that follows presents Revenue, Income (Loss) from Operations and Depreciation and Amortization by business segment for each of the periods indicated.



	Three Months Ended									Nine Months Ended
(in thousands)	Sep 30, 2019			Sep 30, 2018			Jun 30, 2019			Sep 30, 2019			Sep 30, 2018
Revenue
Energy Services and Products
Remotely Operated Vehicles	$	113,101		$	105,045		$	120,363		$	333,810		$	298,065
Subsea Products	150,836			137,099			138,910			418,590			385,491
Subsea Projects	75,996			104,972			75,104			240,828			239,868
Asset Integrity	59,274			62,346			61,156			181,119			191,056
Total Energy Services and Products	399,207			409,462			395,533			1,174,347			1,114,480
Advanced Technologies	98,440			109,838			100,248			312,967			299,907
Total	$	497,647		$	519,300		$	495,781		$	1,487,314		$	1,414,387
Income (Loss) from Operations
Energy Services and Products
Remotely Operated Vehicles	$	10,145		$	772		$	8,688		$	20,251		$	2,916
Subsea Products	13,219			5,367			7,413			20,156			9,417
Subsea Projects	(616		)	6,088			87			2,363			(6,629		)
Asset Integrity	(2,453		)	2,275			(1,302		)	(4,468		)	7,311
Total Energy Services and Products	20,295			14,502			14,886			38,302			13,015
Advanced Technologies	2,958			8,960			7,241			19,798			18,514
Unallocated Expenses	(28,447		)	(25,014		)	(31,762		)	(94,643		)	(79,867		)
Total	$	(5,194	)	$	(1,552	)	$	(9,635	)	$	(36,543	)	$	(48,338	)
Depreciation and Amortization
Energy Services and Products
Remotely Operated Vehicles	$	26,767		$	27,428		$	26,871		$	81,628		$	83,339
Subsea Products	12,055			12,349			12,366			37,412			41,288
Subsea Projects	8,130			7,464			7,550			23,562			28,830
Asset Integrity	1,634			1,635			1,570			4,838			5,319
Total Energy Services and Products	48,586			48,876			48,357			147,440			158,776
Advanced Technologies	761			792			765			2,356			2,295
Unallocated Expenses	1,220			1,035			1,182			3,561			3,603
Total	$	50,567		$	50,703		$	50,304		$	153,357		$	164,674

We determine Income (Loss) 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. Our equity in earnings (losses) of unconsolidated affiliates is part of our Subsea Projects segment.

During the nine-month period ended September 30, 2018, we recorded write-offs of certain equipment and intangible assets associated with exiting the land survey business and equipment obsolescence of $7.6 million, attributable to our reporting segments as follows:


•	Remotely Operated Vehicles - $0.6 million;


•	Subsea Products - $1.5 million; and

•

Subsea Projects - $5.5 million.