Business Segment Information

9 Months Ended

Sep. 30, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 11 — Business Segment Information 

We have four business segments: Well Intervention, Robotics, Subsea Construction and Production Facilities.  Our Well Intervention segment includes our vessels and related equipment that are used to perform well intervention services primarily in the Gulf of Mexico and North Sea regions.  Our well intervention vessels include the Q4000, the Helix 534, the Seawell, the Well Enhancer and the Skandi Constructor, which is a  chartered vessel.  We are currently constructing two additional well intervention vessels, the Q5000 and the Q7000.  We have also contracted to charter two newbuild vessels, which are expected to be delivered in 2016 and used in connection with our contracts to provide well intervention services offshore Brazil.  Our Robotics segment currently operates four chartered vessels, and also includes remotely operated vehicles (“ROVs”), trenchers and ROVDrills designed to complement offshore construction and well intervention services.  We have sold substantially all of the assets associated with our former Subsea Construction operations, including the sale in January2014 of ourIngleside spoolbase.  The Production Facilities segment includes the HP I as well as our equity investments in Deepwater Gateway and Independence Hub that are accounted for under the equity method.  All material intercompany transactions between the segments have been eliminated.  In February 2013, we sold ERT and as a result, the assets and liabilities included in the sale of ERT and the historical operating results of our former Oil and Gas segment are presented as discontinued operations in the accompanying consolidated financial statements.  See Note 3 to our 2013 Form 10-K for additional information regarding our discontinued operations.

We evaluate our performance based on operating income and income before income taxes of each segment.  Segment assets are comprised of all assets attributable to each reportable segment.  Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents.  Certain financial data by reportable segment is summarized as follows (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Net revenues —
Well Intervention	$	205,139	$	114,238	$	546,057	$	319,893
Robotics		131,707		90,370		339,301		242,940
Subsea Construction		-		4,120		358		69,305
Production Facilities		24,184		24,366		71,373		68,933
Intercompany elimination		(20,193)		(12,977)		(57,093)		(51,347)
Total	$	340,837	$	220,117	$	899,996	$	649,724
Income (loss) from operations —
Well Intervention	$	80,789	$	33,544	$	194,297	$	93,906
Robotics		28,397		16,392		60,415		28,991
Subsea Construction (1)		41		15,088		10,871		29,031
Production Facilities		11,284		14,136		33,127		39,964
Corporate and other		(14,283)		(16,522)		(45,625)		(64,260)
Intercompany elimination		103		21		(1,050)		(2,538)
Total	$	106,331	$	62,659	$	252,035	$	125,094
Equity in earnings of equity investments	$	508	$	857	$	709	$	2,150

(1) Amount in 2014 includes the $10.5 million gain on the sale of our Ingleside spoolbasein January2014.  Amounts in 2013 includethe $1.1 million loss on the sale of the Caesar in June2013 and the $15.6 million gain on the sale of theExpress in July2013.

Intercompany segment revenues are as follows (inthousands): 

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Well Intervention	$	8,635	$	4,784	$	22,052	$	15,052
Robotics		11,558		8,193		35,041		31,305
Subsea Construction		-		-		-		317
Production Facilities		-		-		-		4,673
Total	$	20,193	$	12,977	$	57,093	$	51,347

Intercompany segment profits (losses), which only relate to intercompany capital projects, are as follows (inthousands): 

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Well Intervention	$	(87)	$	(45)	$	(236)	$	(91)
Robotics		28		67		1,417		2,602
Subsea Construction		-		-		-		158
Production Facilities		(44)		(43)		(131)		(131)
Total	$	(103)	$	(21)	$	1,050	$	2,538

Segment assets are comprised of all assets attributable to each reportable segment.  Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents.  The following table reflects total assets by reportable segment (in thousands): 

		September 30,		December 31,
		2014		2013
Well Intervention	$	1,503,592	$	1,245,229
Robotics		324,101		282,373
Subsea Construction		32,959		38,054
Production Facilities		469,374		495,829
Corporate and other		414,930		482,795
Total	$	2,744,956	$	2,544,280