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Business Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segment Information
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 shallow and deepwater 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, 2019.

The following table presents revenue, income (loss) from operations and depreciation and amortization expense by business segment for each of the periods indicated.
 
 
 
Three Months Ended
 
Six Months Ended
(in thousands)
 
Jun 30, 2020
 
Jun 30, 2019
 
Mar 31, 2020
 
Jun 30, 2020

 
Jun 30, 2019
Revenue
 
 
 
 
 
 
 
 
 
 
Energy Services and Products
 
 
 
 
 
 
 
 
 
 
Remotely Operated Vehicles
 
$
98,778

 
$
120,363

 
$
111,780

 
$
210,558

 
$
220,709

Subsea Products
 
130,655

 
138,910

 
194,838

 
325,493

 
267,754

Subsea Projects
 
56,326

 
75,104

 
61,455

 
117,781

 
164,832

Asset Integrity
 
48,077

 
61,156

 
59,132

 
107,209

 
121,845

Total Energy Services and Products
 
333,836

 
395,533

 
427,205

 
761,041

 
775,140

Advanced Technologies
 
93,380

 
100,248

 
109,463

 
202,843

 
214,527

Total
 
$
427,216

 
$
495,781

 
$
536,668

 
$
963,884

 
$
989,667

Income (Loss) from Operations
 
 
 
 
 
 
 
 
 
 
Energy Services and Products
 
 
 
 
 
 
 
 
 
 
Remotely Operated Vehicles
 
$
5,975

 
$
8,688

 
$
9,066

 
$
15,041

 
$
10,106

Subsea Products
 
9,068

 
7,413

 
(91,858
)
 
(82,790
)
 
6,937

Subsea Projects
 
845

 
87

 
(145,290
)
 
(144,445
)
 
2,979

Asset Integrity
 
(2,598
)
 
(1,302
)
 
(109,441
)
 
(112,039
)
 
(2,015
)
Total Energy Services and Products
 
13,290

 
14,886

 
(337,523
)
 
(324,233
)
 
18,007

Advanced Technologies
 
9,707

 
7,241

 
(10,585
)
 
(878
)
 
16,840

Unallocated Expenses
 
(28,179
)
 
(31,762
)
 
(32,649
)
 
(60,828
)
 
(66,196
)
Total
 
$
(5,182
)
 
$
(9,635
)
 
$
(380,757
)
 
$
(385,939
)
 
$
(31,349
)
Depreciation and Amortization, including Goodwill Impairment
 
 
 
 
 
 
 
 
 
 
Energy Services and Products
 
 
 
 
 
 
 
 
 
 
Remotely Operated Vehicles
 
$
22,892

 
$
26,871

 
$
25,725

 
$
48,617

 
$
54,861

Subsea Products
 
10,024

 
12,366

 
62,454

 
72,478

 
25,357

Subsea Projects
 
4,597

 
7,550

 
143,346

 
147,943

 
15,432

Asset Integrity
 
190

 
1,570

 
111,385

 
111,575

 
3,204

Total Energy Services and Products
 
37,703

 
48,357

 
342,910

 
380,613

 
98,854

Advanced Technologies
 
634

 
765

 
12,178

 
12,812

 
1,595

Unallocated Expenses
 
361

 
1,182

 
1,108

 
1,469

 
2,341

Total
 
$
38,698

 
$
50,304

 
$
356,196

 
$
394,894

 
$
102,790


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.
Income (Loss) from Operations
Three Months Ended March 31, 2020 and Six Months Ended June 30, 2020—During the three-month period ended March 31, 2020 and the six-month period ended June 30, 2020, we recorded total adjustments of $386 million for:
•
loss on impairment of $69 million in our Subsea Products, Subsea Projects and Advanced Technologies segments for long-lived assets;
•
write-downs and write-offs of certain intangible assets as discussed below in "Depreciation and Amortization Expense" of $7.3 million;
•
pre-tax goodwill impairment of $303 million in our Subsea Products, Subsea Projects, Asset Integrity and Advanced Technologies segments; and
•
other expenses of $6.6 million.
These total adjustments of $386 million, attributable to each of our reporting segments, are summarized as follows:
•
Remotely Operated Vehicles - $0.7 million;
•
Subsea Products - $108 million;
•
Subsea Projects - $146 million;
•
Asset Integrity - $112 million; and
•
Advanced Technologies - $18 million.
Depreciation and Amortization, including Goodwill Impairment
Depreciation expense on property and equipment, reflected in Depreciation and Amortization, including Goodwill Impairment in the table above, was $38 million, $49 million and $43 million in the three-month periods ended June 30, 2020 and 2019 and March 31, 2020, respectively, and $81 million and $97 million in the six-month periods ended June 30, 2020 and 2019, respectively.
Amortization expense on long-lived intangible assets, reflected in Depreciation and Amortization, including Goodwill Impairment in the table above, was $0.8 million, $1.8 million and $2.6 million in the three-month periods ended June 30, 2020 and 2019 and March 31, 2020, respectively, and $3.4 million and $5.6 million in the six-month periods ended June 30, 2020 and 2019, respectively.
Goodwill impairment expense, reflected in Depreciation and Amortization, including Goodwill Impairment in the table above, was $303 million, in the three-month period ended March 31, 2020 and the six-month period ended June 30, 2020, attributable to each reporting segment as follows:
•
Subsea Products - $51 million;
•
Subsea Projects - $130 million; and
•
Asset Integrity - $111 million; and
•
Advanced Technologies - $11 million.
In the three-month period ended March 31, 2020 and the six-month period ended June 30, 2020, we also recorded the write-downs and write-offs of certain intangible assets of $7.3 million in our Subsea Projects segment, which is included in Depreciation and Amortization, including Goodwill Impairment in the table above.
Goodwill

The following table presents Goodwill by business segment:

 
 
 
 
 
(in thousands)
 
Jun 30, 2020
 
Dec 31, 2019
Goodwill
 
 
 
 
Energy Services and Products
 
 
 
 
Remotely Operated Vehicles
 
$
23,935

 
$
24,423

Subsea Products
 
40,557

 
99,409

Subsea Projects
 
—

 
131,768

Asset Integrity
 
—

 
127,637

Total Energy Services and Products
 
64,492

 
383,237

Advanced Technologies
 
10,454

 
21,842

Total
 
$
74,946

 
$
405,079