10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             .

Commission file number: 1-6311

Tidewater Inc.

(Exact name of registrant as specified in its charter)

Delaware	72-0487776
(State of incorporation)	(I.R.S. Employer Identification No.)

6002 Rogerdale Road, Suite 600

Houston, Texas 77072

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code:     (713) 470-5300

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐ 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,  smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐	Accelerated filer  ☐	Non-accelerated filer  ☐	Smaller reporting company ☒
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    Yes  ☒    No  ☐

26,085,155 shares of Tidewater Inc. common stock $0.001 par value per share were outstanding on July 27, 2018.  Registrant has no other class of common stock outstanding.

PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

	Successor
	June 30,			December 31,
ASSETS	2018			2017
Current assets:
Cash and cash equivalents	$	459,286			432,035
Restricted cash		5,213			21,300
Trade and other receivables, net		96,630			114,184
Due from affiliates		197,059			230,315
Marine operating supplies		28,930			28,220
Other current assets		10,213			19,130
Total current assets		797,331			845,184
Investments in, at equity, and advances to unconsolidated companies		1,335			29,216
Net properties and equipment		803,725			837,520
Deferred drydocking and survey costs		14,372			3,208
Other assets		26,779			31,052
Total assets	$	1,643,542			1,746,180
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	30,561			38,497
Accrued expenses		49,312			54,806
Due to affiliates		62,353			99,448
Accrued property and liability losses		2,790			2,585
Current portion of long-term debt		6,290			5,103
Other current liabilities		17,815			19,693
Total current liabilities		169,121			220,132
Long-term debt		438,559			443,057
Accrued property and liability losses		2,651			2,471
Other liabilities		57,685			58,576
Commitments and Contingencies (Note 10)
Equity:
Successor Common stock of $0.001 par value, 125,000,000 shares authorized, 26,085,274 and 22,115,916 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		26			22
Additional paid-in capital		1,064,039			1,059,120
Retained deficit		(89,378	)		(39,266	)
Accumulated other comprehensive loss		(403	)		(147	)
Total stockholders’ equity		974,284			1,019,729
Noncontrolling interests		1,242			2,215
Total equity		975,526			1,021,944
Total liabilities and equity	$	1,643,542			1,746,180

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Revenues:
Vessel revenues	$	104,174			112,257			191,668			269,162
Other operating revenues		1,427			2,849			5,426			6,693
		105,601			115,106			197,094			275,855
Costs and expenses:
Vessel operating costs		68,012			83,773			129,376			164,618
Costs of other operating revenues		642			1,585			3,116			4,274
General and administrative		24,425			33,059			47,990			74,786
Vessel operating leases		—			5,542			—			13,985
Depreciation and amortization		12,785			36,287			24,802			73,879
Gain on asset dispositions, net		(1,338	)		(3,189	)		(3,257	)		(9,253	)
Asset impairments		1,215			163,423			7,401			228,280
		105,741			320,480			209,428			550,569
Operating loss		(140	)		(205,374	)		(12,334	)		(274,714	)
Other income (expenses):
Foreign exchange loss		(1,002	)		(1,157	)		(1,350	)		(493	)
Equity in net earnings (losses) of unconsolidated companies		390			4,517			(15,049	)		7,358
Interest income and other, net		2,914			1,680			2,786			3,268
Reorganization items		—			(313,176	)		—			(313,176	)
Interest and other debt costs, net		(7,547	)		(10,605	)		(15,146	)		(31,613	)
		(5,245	)		(318,741	)		(28,759	)		(334,656	)
Loss before income taxes		(5,385	)		(524,115	)		(41,093	)		(609,370	)
Income tax expense		5,797			295			9,118			2,012
Net loss	$	(11,182	)		(524,410	)		(50,211	)		(611,382	)
Less: Net income (loss) attributable to noncontrolling interests		(242	)		24			(99	)		7,907
Net loss attributable to Tidewater Inc.	$	(10,940	)		(524,434	)		(50,112	)		(619,289	)
Basic loss per common share	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Diluted loss per common share	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Weighted average common shares outstanding		24,654,220			47,121,304			23,989,254			47,101,155
Dilutive effect of stock options and restricted stock		—			—			—			—
Adjusted weighted average common shares		24,654,220			47,121,304			23,989,254			47,101,155

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Net loss	$	(11,182	)		(524,410	)		(50,211	)		(611,382	)
Other comprehensive income:
Unrealized gains (losses) on available for sale securities,    net of tax of $0, $0, $0 and $61		43			86			(256	)		(8	)
Change in loss on derivative contract, net of tax of    $0, $0, $0 and $823		—			—			—			1,317
Change in supplemental executive retirement plan liability,    net of tax of $0, $0, $0 and ($927)		—			—			—			(1,721	)
Change in pension plan minimum liability, net of tax    of $0, $0, $0 and $215		—			—			—			399
Change in other benefit plan minimum liability, net of tax    of $0, $0, $0 and ($2,046)		—			—			—			(3,799	)
Total comprehensive loss	$	(11,139	)		(524,324	)		(50,467	)		(615,194	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Successor			Predecessor
	Six Months Ended			Six Months Ended
	June 30, 2018			June 30, 2017
Operating activities:
Net loss	$	(50,211	)		(611,382	)
Adjustments to reconcile net loss to net cash provided by (used in) operating    activities:
Reorganization items		—			308,011
Depreciation and amortization		22,572			73,879
Amortization of deferred drydocking and survey costs		2,230			—
Amortization of debt premium and discounts		(900	)		—
Provision for deferred income taxes		—			(7,743	)
Gain on asset dispositions, net		(3,257	)		(9,253	)
Asset impairments		7,401			228,280
Changes in investments in, at equity, and advances      to unconsolidated companies		27,881			(9,163	)
Compensation expense - stock-based		6,139			(562	)
Excess tax liability on stock option activity		—			4,927
Changes in assets and liabilities, net:
Trade and other receivables		(15,097	)		57,701
Changes in due to/from related parties, net		19,869			22,983
Marine operating supplies		(711	)		(922	)
Other current assets		8,752			(22,668	)
Accounts payable		1,709			(15,384	)
Accrued expenses		(6,652	)		17,870
Accrued property and liability losses		205			(816	)
Other current liabilities		5,590			(1,216	)
Other liabilities		11			3,135
Cash paid for deferred drydocking and survey costs		(13,394	)		—
Other, net		4,846			9,110
Net cash provided by operating activities		16,983			46,787
Cash flows from investing activities:
Proceeds from sales of assets		12,968			3,072
Additions to properties and equipment		(5,775	)		(9,982	)
Proceeds related to novated vessel construction contract		—			5,272
Net cash provided by (used in) investing activities		7,193			(1,638	)
Cash flows from financing activities:
Principal payment on long-term debt		(2,637	)		(5,048	)
Payments to General Unsecured Creditors		(8,377	)		—
Other		(1,998	)		(6,127	)
Net cash used in financing activities		(13,012	)		(11,175	)
Net change in cash, cash equivalents and restricted cash		11,164			33,974
Cash, cash equivalents and restricted cash at beginning of period		453,335			649,804
Cash, cash equivalents and restricted cash at end of period	$	464,499			683,778
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	16,134			8,651
Income taxes	$	10,083			5,778
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	—			282

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands)

									Accumulated
			Additional						other			Non
	Common		paid-in			Retained			comprehensive			controlling
	stock		capital			(deficit) earnings			loss			interest			Total
Balance at December 31, 2017 (Successor)	$	22		1,059,120			(39,266	)		(147	)		2,215			1,021,944
Total comprehensive loss		—		—			(50,112	)		(256	)		(99	)		(50,467	)
Issuance of common stock		4		(2	)		—			—			—			2
Amortization of restricted stock units		—		6,047			—			—			—			6,047
Acquisition of noncontrolling interests		—		(1,126	)		—			—			(874	)		(2,000	)
Balance at June 30, 2018 (Successor)	$	26		1,064,039			(89,378	)		(403	)		1,242			975,526
Balance at December 31, 2016  (Predecessor)	$	4,707		171,018			1,570,027			(6,446	)		8,258			1,747,564
Total comprehensive loss		—		—			(619,289	)		(3,812	)		7,907			(615,194	)
Stock option activity		—		562			—			—			—			562
Cancellation of restricted stock awards		—		—			157			—			—			157
Amortization/cancellation of restricted stock units		5		(6,064	)		—			—			—			(6,059	)
Cash paid to noncontrolling interests		—		—			—			—			(1,200	)		(1,200	)
Balance at June 30, 2017 (Predecessor)	$	4,712		165,516			950,895			(10,258	)		14,965			1,125,830

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

(1) INTERIM FINANCIAL STATEMENTS

The unaudited condensed consolidated financial statements for the interim periods presented herein have been prepared in conformity with United States generally accepted accounting principles and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the unaudited condensed consolidated financial statements at the dates and for the periods indicated as required by Rule 10-01 of Regulation S‑X of the Securities and Exchange Commission (SEC). Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Tidewater Inc. (the company) Transition Report on Form 10-K for the nine month period ended December 31, 2017, filed with the SEC on March 15, 2018.

The unaudited condensed consolidated financial statements include the accounts of the company and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation. The company uses the equity method to account for equity investments over which the company exercises significant influence but does not exercise control and is not the primary beneficiary. Unless otherwise specified, all per share information included in this document is on a diluted earnings per share basis.

Reorganization and Fresh Start Accounting

References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the company through July 31, 2017.

On July 31, 2017, the company and certain of its subsidiaries that had been named as additional debtors in the Chapter 11 proceedings emerged from bankruptcy after successfully completing its reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of the company and its Affiliated Debtors (the “Plan”). Upon the company's emergence from Chapter 11 bankruptcy, the company qualified for and adopted fresh-start accounting in accordance with the provisions set forth in ASC 852, which requires the company to present its assets, liabilities, and equity as if it were a new entity upon emergence from bankruptcy. The implementation of the Plan and the application of fresh-start accounting materially changed the carrying amounts and classifications reported in the company’s consolidated financial statements and resulted in the company becoming a new entity for financial reporting purposes. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan, the financial statements after July 31, 2017 are not comparable with the financial statements prior to July 31, 2017. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor companies.

(2) ACCOUNTING PRONOUNCEMENTS

From time to time new accounting pronouncements are issued by the FASB that are adopted by the company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the company’s consolidated financial statements upon adoption.

In March 2017, the FASB issued ASU 2017-7, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Costs. This new guidance amends the requirements related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. This new guidance was effective for the company in January 2018. The adoption of this guidance required a retrospective approach and did not have a material effect on the company’s consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This new guidance was effective for the company in January 2018. The adoption of this guidance required a modified retrospective approach and did not have a material effect on the company’s consolidated financial statements.

7

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230 to add or clarify guidance on the classification of certain specific types of cash receipts in the statement of cash flows with the intent of reducing diversity in practice. This new guidance was effective for the company in January 2018. The adoption of this guidance required a retrospective approach and did not have a material effect on the company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance requires lessees to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. In July 2018, the FASB finalized the targeted improvements to ASU 2016-02, which provided for an optional transition method whereby entities may prospectively adopt the ASU with cumulative catch-up upon adoption and provided lessors with a practical expedient that would allow lessors to account for the combined lease and non-lease components under ASU 2014-09 when the non-lease component is the predominant element of the combined component. The new guidance will be effective for the company in January 2019. Upon adoption of the new lease accounting standard the company will record right of use assets and corresponding lease liabilities that are not expected to be material to the consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes prior revenue recognition guidance and provides a five step recognition framework that requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of goods and services. This new revenue standard was effective for the company in January 2018 and was adopted using the modified retrospective approach. The company adopted this standard on January 1, 2018, and did not adjust the beginning accumulated deficit. The necessary changes to the company’s business processes, systems and controls to support recognition and disclosure of this ASU upon adoption on January 1, 2018, have been implemented. Prior to the adoption of this ASU, the company recognized mobilization fees as revenue in the period earned. Customer reimbursed vessel modifications were not reflected in the statement of earnings.  Refer to Note (3) for further details.

(3) REVENUE RECOGNITION

The company’s primary source of revenue is derived from time charter contracts for which the company provides a vessel and crew on a rate per day of service basis.Services provided under respective charter contracts represent a single performance obligation satisfied over time and are comprised of a series of time increments; therefore, vessel revenues are recognized on a daily basis throughout the contract period. These vessel time charter contracts are generally either on a “term” basis (ranging from three months to three years) or on a “spot” basis.Spot contract terms generally range from one day to three months. There are no material differences in the cost structure of the company’s contracts based on whether the contracts are spot or term since the operating costs are generally the same without regard to the length of a contract. Customers are typically billed on a monthly basis for dayrate services and payment terms are generally 30 to 45 days.

Occasionally, customers pay additional lump-sum fees to the company in order to either mobilize a vessel to a new location prior to the start of a charter contract or demobilize the vessel at the end of a charter contract. Mobilizations are not considered to be a separate performance obligation, thus, the company has determined that mobilization fees are a component of the vessel’s charter contract.  As such, the company defers lump-sum mobilization fees as a liability and recognizes such fees as revenue consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of the vessel’s respective charter. Lump-sum demobilization revenue expected to be received upon contract termination is deferred as an asset and recognized ratably as revenue but only in circumstances where the receipt of the demobilization fee at the end of the contract is estimable and there is a high degree of certainty that collection will occur. Costs associated with mobilizations and demobilizations are recognized in vessel operating expense.

Customers also occasionally reimburse the company for modifications to vessels in order to meet contractual requirements. These vessel modifications are not considered to be a separate performance obligation of the vessel’s charter; thus, the company records a liability for lump-sum payments made by customers for vessel modification and recognizes it as revenue consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of the vessel’s respective charter.

Total revenue is determined for each individual contract by estimating both fixed (mobilization, demobilization and vessels modifications) and variable (dayrate services) consideration expected to be earned over the contract term. The company has applied the optional exemption under the revenue standard and has not disclosed the estimated transaction price related to the variable portion of the unsatisfied performance obligation at the end of the reporting period.  

8

Prior to the adoption of ASU 2014-09, the company recognized mobilization fees as revenue in the period earned and customer reimbursed vessel modifications were not reflected in earnings.

Costs associated with customer-directed mobilizations and reimbursed modifications to vessels are considered costs of fulfilling a charter contract and are expected to be recovered. Mobilization costs such as crew, travel, fuel, port fees, temporary importation fees and other costs are deferred as an asset and amortized as other vessel operating expenses consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. Costs incurred for modifications to vessels in order to meet contractual requirements are capitalized as a fixed asset and depreciated either over the term of the respective charter contract or over the remaining estimated useful life of the vessel in instances where the modification is a permanent upgrade to the vessel and enhances its usefulness.

The following table discloses the amount of revenue by segment and in total for the worldwide fleet, for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Vessel revenues:
Americas	$	32,601		31,887		58,682		112,420
Middle East/Asia Pacific		22,406		27,766		40,794		54,444
Europe/Mediterranean Sea		13,357		11,031		22,980		21,197
West Africa		35,810		41,573		69,212		81,101
		104,174		112,257		191,668		269,162

Contract Balances

Trade accounts receivables are recognized when revenue is earned and collectible. Contract assets include pre-contract costs, primarily related to vessel mobilizations, which have been deferred and will be amortized as other vessel expenses consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. Contract liabilities include payments received for mobilizations or reimbursable vessel modifications to be recognized consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. At June 30, 2018, the company had $0.1 million of deferred mobilization costs included within other current assets and $1.2 million of contract liabilities/deferred revenue included within other current liabilities.

The table below summarizes the revenue expected to be recognized in future quarters related to unsatisfied performance obligations as of June 30, 2018:

		Successor
		For the quarter period ended
(In thousands)		September 30, 2018		December 31, 2018		Total
Contract liabilities/deferred revenue	$		692		552		1,244

The impact of adopting the new revenue recognition guidance on the unaudited condensed consolidated balance sheets, statement of earnings (loss) and statement of cash flows as of and for the six months ended June 30, 2018 was immaterial.

9

(4) STOCKHOLDERS' EQUITY

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive income (loss) by component, net of tax for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	For the quarter ended June 30, 2018 (Successor)												For the six months ended June 30, 2018 (Successor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/18			in OCI		net income		OCI		6/30/18			12/31/17			in OCI			net income		OCI			6/30/18
Available for sale securities		(43	)		—		43		43		—			256			(660	)		404		(256	)		—
Pension/Post- retirement benefits		(403	)		—		—		—		(403	)		(403	)		—			—		—			(403	)
Total		(446	)		—		43		43		(403	)		(147	)		(660	)		404		(256	)		(403	)

	For the quarter ended June 30, 2017 (Predecessor)												For the six months ended June 30, 2017 (Predecessor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/17			in OCI		net income		OCI		6/30/17			12/31/16			in OCI			net income		OCI			6/30/17
Available for sale securities		(95	)		6		80		86		(9	)		(1	)		(209	)		201		(8	)		(9	)
Currency translation adjustment		(9,811	)		—		—		—		(9,811	)		(9,811	)		—			—		—			(9,811	)
Pension/Post- retirement benefits		(438	)		—		—		—		(438	)		4,683			(5,121	)		—		(5,121	)		(438	)
Interest rate swap		—			—		—		—		—			(1,317	)		—			1,317		1,317			—
Total		(10,344	)		6		80		86		(10,258	)		(6,446	)		(5,330	)		1,518		(3,812	)		(10,258	)

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statement of income for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,		Affected line item in thecondensed
(In thousands)	2018		2017		2018		2017		consolidated statements of income
Realized gains on available for sale securities	$	43		80		404		405	Interest income and other, net
Interest rate swap		—		—		—		2,140	Interest and other debt costs
Total pre-tax amounts		43		80		404		2,545
Tax effect		—		—		—		1,027
Total gains for the period, net of tax	$	43		80		404		1,518

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(5) INCOME TAXES

For all periods prior to March 31, 2015, we calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Beginning in the quarter ended June 30, 2015, we use a discrete effective tax rate method to calculate taxes for interim periods. We determined that due to the level of volatility and unpredictability of earnings in our industry, both overall and by jurisdiction, use of the discrete method would continue to be proper for the period ended June 30, 2018.

Income tax expense for the quarter ended June 30, 2018, reflects tax liabilities in various jurisdictions that are either based on revenue (deemed profit regimes) or pre-tax profits.

The company’s balance sheet at June 30, 2018, reflects the following in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes:

	June 30,
(In thousands)	2018
Tax liabilities for uncertain tax positions	$	19,626
Income tax payable	$	8,995
Income tax receivable	$	7,814

The tax liabilities for uncertain tax positions are primarily attributable to permanent establishment issues related to a foreign joint venture. Penalties and interest related to income tax liabilities are included in income tax expense. Income tax payable is included in other current liabilities.

Unrecognized tax benefits, which would lower the effective tax rate if realized at June 30, 2018, are as follows:

	June 30,
(In thousands)	2018
Unrecognized tax benefit related to state tax issues	$	12,425
Interest receivable on unrecognized tax benefit related to state tax issues	$	58

As of December 31, 2017, the company’s balance sheet reflected approximately $43.2 million of net deferred tax assets with a valuation allowance of $43.2 million. For the quarter ended June 30, 2018, the company has net deferred tax assets of approximately $47.7 million prior to a valuation allowance analysis.  

Management assesses all available positive and negative evidence to estimate the company’s ability to generate sufficient future taxable income of the appropriate character, and in the appropriate taxing jurisdictions, to permit use of existing deferred tax assets. A significant piece of objective negative evidence is a cumulative loss incurred over a three-year period in a taxing jurisdiction. Prevailing accounting practice is that such objective evidence would limit the ability to consider other subjective evidence, such as projections for future growth.

On the basis of this evaluation, a valuation allowance of $47.7 million has been recorded against net deferred tax assets which are more likely than not to be unrealized.  The amount of deferred tax assets considered realizable could be adjusted if future estimates of U.S. taxable income change, or if objective negative evidence in the form of cumulative losses is no longer present and subjective evidence, such as financial projections for future growth and tax planning strategies, are given additional weight.

With limited exceptions, the company is no longer subject to tax audits by U.S. federal, state, local or foreign taxing authorities for years prior to 2014. The company has ongoing examinations by various foreign tax authorities and does not believe that the results of these examinations will have a material adverse effect on the company’s financial position, results of operations, or cash flows.

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On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was enacted. As of June 30, 2018, the company has not completed its accounting for the tax effects of enactment of the Tax Act. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, or SAB 118, to address the accounting and reporting of the Tax Act. SAB 118 allows companies to take a reasonable period, which should not extend beyond one year from enactment of the Tax Act, to measure and recognize the effects of the new tax law. For various reasons discussed further below, we have not yet completed the accounting for the income tax effects of certain elements of the Tax Act. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as discussed below:

Reduction of US federal corporate tax rate: The Tax Act reduces the corporate tax rate to 21 percent effective January 1, 2018. Therefore, the company made a reasonable estimate of the effects on existing deferred tax balances as of December 31, 2017. While we were able to make a reasonable estimate of the impact of the reduction in corporate rate, it may be affected by other analyses related to the Tax Act, including, but not limited to, our calculation of the one-time transition tax. During the six month period ended June 30, 2018, we recognized no adjustments to the provisional amounts recorded at December 31, 2017.

One Time Transition Tax: The deemed repatriation transition tax is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To determine the amount of the transition tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries.  We were able to make a reasonable estimate of the one-time transition tax and recognized a provisional deemed dividend inclusion at December 31, 2017. During the six month period ended June 30, 2018, we recognized no adjustments to the provisional amounts recorded at December 31, 2017.

Global Intangible Low-taxed Income (“GILTI”): The company continues to evaluate the impacts of the newly enacted GILTI provisions which subject the company’s foreign earnings to a minimum level of tax. Because of the complexities of the new legislation, the company has not elected an accounting policy for GILTI at this time. Recent FASB guidance indicates that accounting for GILTI either as part of deferred taxes or as a period cost are both acceptable methods. Once further information is gathered and interpretation and analysis of the tax legislation evolves, the company will make an appropriate accounting method election. For the six month period ended June 30, 2018, we were able to make a reasonable estimate of GILTI and do not expect that it will have a material impact on our 2018 financial statements.

Base Erosion Anti-abuse Tax (“BEAT”): The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations beginning in 2018. For the six month period ended June 30, 2018, we are in the process of analyzing the impact of BEAT and have provisionally concluded that we are below the required thresholds defined in the Tax Act. Therefore, we do not expect BEAT to have a material impact on our 2018 financial statements.

Foreign-Derived Intangible Income (“FDII”): The FDII provisions in the Tax Act provide tax incentives to US companies to earn income from the sale, lease or license of goods and services abroad in the form of a deduction for foreign-derived intangible income. For the six month period ended June 30, 2018, we are in the process of analyzing the impact of FDII and have provisionally concluded FDII will be inapplicable in 2018 due to our net operating loss position.  Therefore, we do not expect FDII to have a material impact on our 2018 financial statements.

Executive Compensation: The Tax Act expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility under Section 162(m) and repealed the exclusion for performance-based compensation. For the six month period ended June 30, 2018, we were able to make a reasonable estimate of the impact of the executive compensation changes and do not expect those changes to have a material impact on our 2018 financial statements.

Interest Expense Limitation: The Tax Act limits the deduction for net interest expense that exceeds 30% of the adjusted taxable income for the year under IRC Section 163(j). For the six month period ended June 30, 2018, we were able to make a reasonable estimate of the interest expense limitation and have included the resulting limitation of approximately $7.5 million before consideration of the valuation allowance in the financial statements. We recorded this adjustment as of June 30, 2018; however, because of the offsetting adjustment to our valuation allowance we estimate no impact to 2018 net income as a result of this provision.

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(6) EMPLOYEE BENEFIT PLANS

U.S. Defined Benefit Pension Plan

The company has a defined benefit pension plan (pension plan) that covers certain U.S. citizen employees and other employees who are permanent residents of the United States. Effective April 1, 1996, the pension plan was closed to new participation. In December 2009, the Board of Directors amended the pension plan to discontinue the accrual of benefits on December 31, 2010. This change did not affect benefits earned by participants prior to January 1, 2011. The company did not contribute to the pension plan during the quarters and six months ended June 30, 2018 and 2017, and currently is evaluating whether to contribute to the pension plan during the remaining quarters of calendar year 2018.

Supplemental Executive Retirement Plan

The company maintains a non-contributory, defined benefit supplemental executive retirement plan (supplemental plan) that provides pension benefits to certain employees in excess of those allowed under the company’s tax-qualified pension plan. A Rabbi Trust has been established for the benefit of participants in the supplemental plan. Effective March 4, 2010, the supplemental plan was closed to new participation. The supplemental plan is a non-qualified plan and, as such, the company is not required to make contributions to the supplemental plan. During the quarter and six month periods ended June 30, 2018, the companycontributed $0.04 million and $0.3 million, respectively, and did not contribute during the quarter and six month periods ended June 30, 2017, to the supplemental plan.The company expects to contribute $0.7 million to the supplemental plan during the remaining quarters of 2018.

The Rabbi Trust assets, which were invested in a variety of marketable securities (but not the company’s stock), were recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (loss) until the investments were sold in the March 2018 quarter. Investments consisting of money market funds held in a Rabbi Trust at June 30, 2018 and December 31, 2017, are included in other assets at fair value. The following table summarizes the carrying value of the trust assets, including unrealized gains or losses at June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Investments held in Rabbi Trust at fair value	$	45		8,908
Unrealized gains in fair value of trust assets		—		256
Obligations under the supplemental plan		23,797		32,508

The company’s obligations under the supplemental plan are included in ‘accrued expenses’ and ‘other liabilities’ on the consolidated balance sheet.

Jeffrey M. Platt retired from his position as the company’s President and Chief Executive Officer and resigned as a member of the company’s board of directors (the “Board”), effective October 15, 2017. As a result of Mr. Platt’s retirement, he received in May 2018 an $8.9 million lump sum distribution in settlement of his supplemental executive retirement plan obligation. A settlement loss of approximately $0.3 million was recorded during the quarter ended June 30, 2018. During the six months period ended June 30, 2018 the company elected to sell its investments held in the rabbi trust in order to preserve the value of such investments and to fund the payment due to the former CEO.

Postretirement Benefit Plan

Qualified retired employees currently are covered by a plan which provides limited health care and life insurance benefits. Costs of the plan are based on actuarially determined amounts and are accrued over the period from the date of hire to the full eligibility date of employees who are expected to qualify for these benefits. This plan is funded through payments by the company as benefits are required. The company eliminated the life insurance portion of its post retirement benefit effective January 1, 2018.

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Net Periodic Benefit Costs

The net periodic benefit cost for the company’s defined benefit pension plans and supplemental plan (referred to collectively as “Pension Benefits”) and the postretirement health care and life insurance plan (referred to collectively as “Other Benefits”) is comprised of the following components:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Pension Benefits:
Service cost	$	41			294			71			713
Interest cost		882			984			1,784			1,975
Expected return on plan assets		(482	)		(518	)		(964	)		(1,119	)
Administrative expenses		2			2			3			24
Payroll tax of net pension costs		—			—			—			56
Amortization of net actuarial losses		—			—			—			32
Recognized actuarial loss		—			561			—			1,008
Settlement loss recognized		335			—			335			—
Net periodic pension cost	$	778			1,323			1,229			2,689
Other Benefits:
Service cost	$	15			17			30			38
Interest cost		29			48			58			99
Amortization of prior service cost		(75	)		(695	)		(150	)		(1,783	)
Recognized actuarial benefit		11			(252	)		22			(535	)
Net periodic postretirement benefit	$	(20	)		(882	)		(40	)		(2,181	)

The company also has a defined benefit pension plan that covers certain Norwegian citizen employees and other employees who are permanent residents of Norway. Benefits are based on years of service and employee compensation. The company contributed 1.9 million NOK (approximately $0.2 million) during the quarter and six months ended June 30, 2018, and 3.0 million NOK (approximately $0.4 million) during the quarter and six months ended June 30, 2017, to the Norwegian defined benefit pension plan. The company currently does not expect to contribute to the Norwegian pension plan during the remaining quarters of calendar year 2018. The preceding net periodic benefit cost table includes the Norwegian pension plan.

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(7)INDEBTEDNESS

The following is a summary of all debt outstanding at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
New secured notes:
8.00% New secured notes due August 2022 (A)		349,954		350,000
Troms Offshore borrowings (B):
NOK denominated notes due May 2024		13,595		14,054
NOK denominated notes due January 2026		25,315		25,965
USD denominated notes due January 2027		22,729		23,345
USD denominated notes due April 2027		24,810		25,463
	$	436,403		438,827
Debt premiums and discounts, net		8,446		9,333
Less: Current portion of long-term debt		6,290		5,103
Total long-term debt	$	438,559		443,057

(A)   As of June 30, 2018 and December 31, 2017, the fair value (Level 2) of the New Secured Notes was $361.5 million and $359.8 million, respectively.  

(B) The company pays principal and interest on these notes semi-annually.  As of June 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $86.4 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of June 30, 2018, was 5.00%.

New Secured Notes Tender Offer

Pursuant to the New Secured Notes indenture dated July 31, 2017, among the company, each of the guarantors party thereto, and Wilmington Trust, National Association, as Trustee and Collateral Agent (the “Indenture”) governing the Notes, the company is required to make cash offers to the registered or beneficial holders (the “Holders” and each, a “Holder”) of the Notes within 60 days of the date that the net proceeds realized by the company from Asset Sales (as defined in the Indenture, but which generally equates to 65% of the proceeds from Asset Sales, net of any commission paid) exceed $10.0 million (the “Asset Sale Threshold”). Since the issuance of the Notes, the company executed certain Asset Sales and on December 19, 2017, the aggregate net proceeds realized from such Asset Sales exceeded the Asset Sale Threshold, which triggered the obligation under the Indenture for the company to commence the Offer.  

On February 2, 2018, the company commenced an offer to purchase (the “Offer”) up to $24.7 million aggregate principal amount (the “Offer Amount”) of its outstanding 8.00% senior secured notes due 2022 (the “Notes”) for cash. On March 7, 2018, we purchased $46,023 aggregate principal amount of the Notes that were validly tendered in accordance with the terms and conditions of the Offer. 

Because the aggregate principal amount of tendered and accepted Notes was less than the Offer Amount, cash in an amount equal to the difference between the Offer Amount and the principal amount of the Notes accepted for tender   became available for use by the company in any manner not prohibited by the Indenture and is no longer shown as restricted cash on the balance sheet. The $5.2 million restricted cash on the balance sheet at June 30, 2018, represents additional proceeds from Asset Sales since the date of the February 2018 tender offer and is, therefore, restricted by the terms of the Indenture.

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Debt Costs

The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. The following is a summary of interest and debt costs incurred, net of interest capitalized, for the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Interest and debt costs incurred, net of interest capitalized	$	7,547		10,605	$	15,146		31,613
Interest costs capitalized		194		601		368		1,818
Total interest and debt costs	$	7,741		11,206	$	15,514		33,431

(8) LOSS PER SHARE

The components of basic and diluted loss per share for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands, except share and per share data)	2018			2017			2018			2017
Net loss available to common shareholders	$	(10,940	)		(524,434	)		(50,112	)		(619,289	)
Weighted average outstanding shares of common stock, basic (A)		24,654,220			47,121,304			23,989,254			47,101,155
Dilutive effect of options, warrants and restricted stock awards and units		—			—			—			—
Weighted average shares of common stock and equivalents		24,654,220			47,121,304			23,989,254			47,101,155
Loss per share, basic (B)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Loss per share, diluted (C)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Additional information:
Incremental "in-the-money" options, warrants and restricted stock awards and units at the end of the period (D)		4,521,727			183			5,454,218			183

(A) Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018, were 26,085,274, 3,924,441 and 30,009,715, respectively.

(B) The company calculates “Loss per share, basic” by dividing “Net loss available to common shareholders” by “Weighted average outstanding shares of common stock, basic”.

(C) The company calculates “Loss per share, diluted” by dividing “Net loss available to common shareholders” by “Weighted average common stock and equivalents”.

(D) For the six months ended June 30, 2018, the company also had 5,062,089 shares of “out-of- the-money” warrants outstanding at the end of the period.

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(9) RELATED PARTY BALANCES

The company maintained the following balances with related parties as of June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Due from related parties:
Sonatide (Angola)	$	152,826		230,315
DTDW (Nigeria)		44,233		33,353
Due to related parties:
Sonatide (Angola)	$	46,742		99,448
DTDW (Nigeria)		15,611		9,645
Due from related parties, net of due to related parties	$	134,706		154,575

Included in due from related parties balances are customer receivables expected to be remitted to the company through joint ventures, receivables related to operating expenses paid by the company on behalf of joint ventures and cash received by joint ventures from customers and due to the company.  Included in the due to related parties balances are commissions payable by the company to the related parties  and payables related to local expenses paid by the related parties on behalf of the company. For more information regarding amounts due to and from Sonatide please refer to Note (10). Amounts due from and due to DTDW (Nigeria) of $33.4 million and $9.6 million, respectively, are included in trade and other receivables, net, and accounts payable line items at December 31, 2017.

(10) COMMITMENTS AND CONTINGENCIES

Vessel and Other Commitments

The company has $2.3 million in unfunded capital commitments associated with one 5,400 deadweight ton (DWT) deepwater platform supply vessel (PSV) under construction at June 30, 2018. The total cost of the new-build vessel includes contract costs and other incidental costs. The company took delivery of this vessel on July 31, 2018.      

Sonatide Joint Venture

The company has previously disclosed the significant financial and operational challenges that it confronts with respect to its operations in Angola, as well as steps that the company has taken to address or mitigate those risks. Most of the company’s attention has been focused in three areas: (i) reducing the net receivable balance due to the company from Sonatide, its Angolan joint venture with Sonangol, for vessel services; (ii) reducing the foreign currency risk created by virtue of provisions of Angolan law that require that payment for a significant  portion of the services provided by Sonatide be paid in Angolan kwanza; and (iii) optimizing opportunities, consistent with Angolan law, for services provided by the company to be paid for directly in U.S. dollars. These challenges, and the company’s efforts to respond, continue.

Amounts due from Sonatide (Due from affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $153 million and $230 million, respectively, represent cash received by Sonatide from customers and due to the company, amounts due from customers that are expected to be remitted to the company through Sonatide and costs incurred by the company on behalf of Sonatide. Approximately $25 million of the balance at June 30, 2018 represents invoiced but unpaid vessel revenue related to services performed by the company through the Sonatide joint venture. Remaining amounts due to the company from Sonatide are, in part, supported by approximately $67 million of cash held by Sonatide, of which the equivalent of $43 million is denominated in Angolan kwanzas, pending conversion into U.S. dollars and subsequent expatriation. In addition, the company owes Sonatide the aggregate sum of approximately $47 million, including $30 million in commissions payable by the company to Sonatide. The company monitors the aggregate amounts due from Sonatide relative to the amounts due to Sonatide.

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For the six months ended June 30, 2018, the company collected (primarily through Sonatide) approximately $51 million from its Angolan operations. Of the $51 million collected, approximately $47 million were U.S. dollars received by Sonatide on behalf of the company or U.S. dollars received directly by the company from customers. The balance of $4 million collected reflects Sonatide’s conversion of Angolan kwanza into U.S. dollars and the subsequent expatriation of the dollars and payment to the company. The company also reduced the respective due from affiliates and due to affiliates balances by approximately $55 million during the six months ended June 30, 2018 through netting transactions based on an agreement with the joint venture.

Amounts due to Sonatide (Due to affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $47 million and $99 million, respectively, represents amounts due to Sonatide for commissions payable and other costs paid by Sonatide on behalf of the company.

The company believes that the process for converting Angolan kwanzas continues to function, but the relative scarcity of U.S. dollars in Angola continues to hinder the conversion process. Sonatide continues to press the commercial banks with which it has relationships to increase the amount of U.S. dollars that are made available to Sonatide.

For the six month period ended June, 2018, the company’s Angolan operations generated vessel revenues of approximately $29 million, or 15%, of its consolidated vessel revenue, from an average of approximately 38 company-owned vessels that are marketed through the Sonatide joint venture (17 of which were stacked on average during the six months ended June 30, 2018).  For the six months ended June 30, 2017, the company’s Angolan operations generated vessel revenues of approximately $53 million, or 20%, of consolidated vessel revenue, from an average of approximately 53 company-owned vessels (23 of which were stacked on average during the six months ended June 30, 2017).

In addition to vessels that Sonatide charters from the company, Sonatide owns seven vessels (five of which are currently stacked) and certain other assets, in addition to earning commission from company-owned vessels marketed through the Sonatide joint venture (owned 49% by the company). As of June 30, 2018 and December 31, 2017, the carrying value of the company’s investment in the Sonatide joint venture, which is included in “Investments in, at equity, and advances to unconsolidated companies,” was $0 and approximately $27 million, respectively. During the six months ended June 30, 2018, the exchange rate of the Angolan kwanza versus the U.S. dollar was devalued from a ratio of approximately 168 to 1 to a ratio of approximately 250 to 1, or approximately 49%. As a result, the company recognized 49% of the total foreign exchange loss, or approximately $20.6 million through equity in net earnings (losses) of unconsolidated companies.

Also during the quarter ended June 30, 2018, the company received a dividend from Sonatide of $12.3 million which reduced the carrying value of the company’s investment in Sonatide to zero.  Approximately $4.9 million of dividends received in excess of the investment balance was recognized in earnings during the quarter ended June 30, 2018.

Management continues to explore ways to profitably participate in the Angolan market while evaluating opportunities to reduce the overall level of exposure to the increased risks that the company believes characterize the Angolan market. Included among mitigating measures taken by the company to address these risks is the redeployment of vessels from time to time to other markets. Redeployment of vessels to and from Angola since June 30, 2017has resulted in a net 8 vessels transferred out of Angola. Company-owned vessels operating in Angola decreased by 47 vessels, from June 30, 2014 to June 30, 2018 (from 84 vessels to 37 vessels).  Company-owned active vessels decreased in the same period by 58 vessels (from 80 vessels to 22 vessels).

Brazilian Customs

In April 2011, two Brazilian subsidiaries of the company were notified by the Customs Office in Macae, Brazil that they were jointly and severally being assessed fines of 33.0 million Brazilian reais (approximately $8.5 million as of June 30, 2018). Other fines imposed at that same time by the Customs Office have been formally resolved in favor of the company. The assessment of these fines is for the alleged failure of these subsidiaries to obtain import licenses with respect to company vessels that provided Brazilian offshore vessel services to Petrobras, the Brazilian national oil company, over a three-year period ended December 2009. After consultation with its Brazilian tax advisors, the company and its Brazilian subsidiaries believe that vessels that provide services under contract to the Brazilian offshore oil and gas industry are deemed, under applicable law and regulations, to be temporarily imported into Brazil, and thus exempt from the import license requirement.

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The company is vigorously contesting these fines (which it has neither paid nor accrued). Based on the advice of its Brazilian counsel, the company believes that it has a high probability of success with respect to overturning the entire amount of the fines, either at the administrative appeal level or, if necessary, in Brazilian courts. In May 2016, a final administrative appeal allowed fines totaling 3.0 million Brazilian reais (approximately $0.8 million as of June 30, 2018). The company appealed this 3.0 million Brazilian reais administrative award to the appropriate Brazilian court and deposited 6.0 million Brazilian reais (approximately $1.5 million as of June 30, 2018) with the court. The 6.0 million Brazilian reais deposit represents the amount of the award and the substantial interest that would be due if the company did not prevail in this court action. The court action is in its initial stages. The remaining fines totaling 30.0 million Brazilian reais(approximately $7.7 million as of June 30, 2018) are still subject to additional administrative appeals board hearings, but the company believes that previous administrative appeals boarddecisions will be helpful in those upcoming hearings for the vast majority of amounts still claimed by the Macae Customs Office. The company believes that the ultimate resolution of this matter will not have a material effect on the company’s financial position, results of operations or cash flows.

Repairs to U.S. Flagged Vessels Operating Abroad

During fiscal 2015 the company became aware that it may have had compliance deficiencies in documenting and declaring upon re-entry to the U.S. certain foreign purchases for or repairs to U.S. flagged vessels while they were working outside of the U.S.  When a U.S. flagged vessel operates abroad, certain foreign purchases for or repairs made to the U.S. flagged vessel while it is outside of the U.S. are subject to declaration with U.S. Customs and Border Protection (CBP) upon re-entry to the U.S. and are subject to 50% vessel repair duty. During our examination of our filings made in or prior to fiscal 2015 with CBP, we determined that it was necessary to file amended forms with CBP to supplement previous filings.  We have amended several vessel repair entries with CBP and have paid additional vessel repair duties and interest associated with these amended forms. In connection with three of our amended filings, CBP assessed penalties, which the company paid after CBP granted mitigation and reduced the amount of each civil penalty.  The amount paid in civil penalties was not material.  It is possible that CBP may seek to impose further civil penalties or fines in connection with some or all of the other amended filings that could be material.

Currency Devaluation and Fluctuation Risk

Due to the company’s international operations, the company is exposed to foreign currency exchange rate fluctuations and exchange rate risks on all charter hire contracts denominated in foreign currencies. For some of our international contracts, a portion of the revenue and local expenses are incurred in local currencies with the result that the company is at risk of changes in the exchange rates between the U.S. dollar and foreign currencies. We generally do not hedge against any foreign currency rate fluctuations associated with foreign currency contracts that arise in the normal course of business, which exposes us to the risk of exchange rate losses. To minimize the financial impact of these items, the

company attempts to contract a significant majority of its services in U.S. dollars. In addition, the company attempts to minimize the financial impact of these risks by matching the currency of the company’s operating costs with the currency of the revenue streams when considered appropriate. The company continually monitors the currency exchange risks associated with all contracts not denominated in U.S. dollars.  

For more information regarding the reduction in the company’s investment balance as a result of currency devaluation, please refer to the section of Note (10) entitled Sonatide Joint Venture.

Legal Proceedings

Arbitral Award for the Taking of the Company’s Venezuelan Operations

Committees formed under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) have awarded two subsidiaries of the company compensation for the expropriation of the investments of the two subsidiaries by the Bolivarian Republic of Venezuela. The nature of the investments expropriated and the progress of the ICSID proceeding were previously reported by the company in prior filings.  The final aggregate award is $56.9 million as of June 30, 2018 and accrues interest at approximately $0.6 million per quarter. The committees’ decisions are not subject to any further ICSID review, appeal or other substantive proceeding or any stay of enforcement.

The company is committed to taking appropriate steps to enforce and collect the award, which is enforceable in any of the 150 member states that are party to the ICSID Convention.  As an initial step, the company had the award recognized and entered as a judgment by the United States District Court for the Southern District of New York.  A recent federal court of appeals decision resulted in that judgment being vacated for reasons related to service of process. The company has initiated a separate court action in Washington, D.C. using a different service of process method and expects to be

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successful in having the award recognized in the Washington, D.C. court. In addition, the award has been recognized and entered in November 2016 as a final judgment of the High Court of Justice of England and Wales. Even with the likely eventual recognition of the award in the United States and the current recognition by the court in the United Kingdom, the company recognizes that collection of the award presents significant practical challenges. The company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies.

Various legal proceedings and claims are outstanding which arose in the ordinary course of business. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions, will not have a material adverse effect on the company's financial position, results of operations, or cash flows.

(11) FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The company’s supplemental plan assets are accounted for at fair value and are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement, with the exception of investments for which fair value is measured using the net asset value (NAV) per share expedient.

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable		Measured at
			active markets		inputs		inputs		Net Asset
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Value
Cash and cash equivalents	$	45		—		—		—		45
Total fair value of plan assets	$	45		—		—		—		45

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of December 31, 2017 (Successor):

							Significant		Significant
				Quoted prices in			observable		unobservable		Measured at
				active markets			inputs		inputs		Net Asset
(In thousands)	Total			(Level 1)			(Level 2)		(Level 3)		Value
Equity securities	$	5,295			5,295			—		—		—
Debt securities		3,368			851			841		—		1,676
Cash and cash equivalents		246			27			170		—		49
Total	$	8,909			6,173			1,011		—		1,725
Other pending transactions		(1	)		(1	)		—		—		—
Total fair value of plan assets	$	8,908			6,172			1,011		—		1,725

Other Financial Instruments

The company’s primary financial instruments consist of cash, cash equivalents and restricted cash, trade receivables and trade payables with book values that are considered to be representative of their respective fair values. The company periodically utilizes derivative financial instruments to hedge against foreign currency denominated assets and liabilities, currency commitments, or to lock in desired interest rates. These transactions are generally spot or forward currency contracts or interest rate swaps that are entered into with major financial institutions. Derivative financial instruments are intended to reduce the company’s exposure to foreign currency exchange risk and interest rate risk. The company enters into derivative instruments only to the extent considered necessary to address its risk management objectives and does not use derivative contracts for speculative purposes. The derivative instruments are recorded at fair value using quoted prices and quotes obtainable from the counterparties to the derivative instruments.

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Cash Equivalents.  The company’s cash equivalents, which are securities with maturities less than 90 days, are held in deposit accounts with highly rated financial institutions. The carrying value for cash equivalents is considered to be representative of its fair value due to the short duration and conservative nature of the cash equivalent investment portfolio.

Spot Derivatives. Spot derivative financial instruments are short-term in nature and generally settle within two business days. The fair value of spot derivatives approximates the carrying value due to the short-term nature of this instrument, and as a result, no gains or losses are recognized.

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	423,131		423,131		—		—
Total fair value of assets	$	423,131		423,131		—		—

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of December 31, 2017 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	399,322		399,322		—		—
Total fair value of assets	$	399,322		399,322		—		—

For disclosures related to assets and liabilities measured at fair value on a nonrecurring basis refer to Note (14).

(12) OTHER CURRENT ASSETS, PROPERTIES AND EQUIPMENT, OTHER ASSETS, ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES          

A summary of other current assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Deposits	$	2,151		1,780
Investments held in rabbi trust (A)		45		8,908
Prepaid expenses		8,017		8,442
	$	10,213		19,130

(A) The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

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A summary of net properties and equipment at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Properties and equipment:
Vessels and related equipment	$	836,773		850,268
Other properties and equipment		5,481		5,710
		842,254		855,978
Less accumulated depreciation and amortization		38,529		18,458
Net properties and equipment	$	803,725		837,520

A summary of other assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Recoverable insurance losses	$	2,585		2,405
Investments held for supplemental savings plan accounts		5,274		6,583
Long-term deposits		13,763		16,217
Other		5,157		5,847
	$	26,779		31,052

A summary of accrued expenses at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Payroll and related payables (B)	$	9,004		17,344
Commissions payable (C)		2,488		1,898
Accrued vessel expenses		28,701		27,222
Accrued interest expense		5,958		6,036
Other accrued expenses		3,161		2,306
	$	49,312		54,806

(B) The balance at December 31, 2017 includes $8.9 million payable to the former CEO, which was paid in May 2018.

(C) Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

respectively. These amounts are included in amounts due to affiliates.

A summary of other current liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Taxes payable	$	15,988		10,326
Amounts payable to holders of General Unsecured Claims		—		8,474
Other		1,827		893
	$	17,815		19,693

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A summary of other liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Postretirement benefits liability	$	2,420		2,642
Pension liabilities		36,526		36,614
Deferred supplemental savings plan liability		5,277		6,592
Other		13,462		12,728
	$	57,685		58,576

(13) SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS

During the quarter ended March 31, 2018, the company’s Africa/Europe segment was split as a result of management realignment such that the company’s operations in Europe and Mediterranean Sea regions and the company’s West African regions are now separately reported segments. As such, the company now discloses these new segments as Europe/Mediterranean Sea and West Africa, respectively. The company’s Americas and Middle East/Asia Pacific segments are not affected by this change. This new segment alignment is consistent with how the company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Prior year amounts have been recast to conform to the new segment alignment.

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The following table provides a comparison of segment revenues, vessel operating profit (loss), depreciation and amortization, and additions to properties and equipment for the quarters and six month periods ended June 30, 2018 and 2017. Vessel revenues and operating costs relate to vessels owned and operated by the company while other operating revenues relate to brokered vessels and other miscellaneous marine-related businesses.

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Revenues:
Vessel revenues:
Americas	$	32,601			31,887			58,682			112,420
Middle East/Asia Pacific		22,406			27,766			40,794			54,444
Europe/Mediterranean Sea		13,357			11,031			22,980			21,197
West Africa		35,810			41,573			69,212			81,101
		104,174			112,257			191,668			269,162
Other operating revenues (A)		1,427			2,849			5,426			6,693
	$	105,601			115,106			197,094			275,855
Vessel operating profit (loss):
Americas	$	5,681			(15,699	)		10,592			14,919
Middle East/Asia Pacific		625			(1,316	)		(1,628	)		(7,480	)
Europe/Mediterranean Sea		(1,142	)		(10,163	)		(4,696	)		(17,265	)
West Africa		1,705			(2,774	)		(48	)		(8,127	)
		6,869			(29,952	)		4,220			(17,953	)
Other operating profit (loss)		778			55			2,284			(170	)
		7,647			(29,897	)		6,504			(18,123	)
Corporate general and administrative expenses		(7,810	)		(14,702	)		(14,494	)		(36,459	)
Corporate depreciation		(100	)		(541	)		(200	)		(1,105	)
Corporate expenses		(7,910	)		(15,243	)		(14,694	)		(37,564	)
Gain on asset dispositions, net		1,338			3,189			3,257			9,253
Asset impairments (B)		(1,215	)		(163,423	)		(7,401	)		(228,280	)
Operating loss	$	(140	)		(205,374	)		(12,334	)		(274,714	)
Foreign exchange loss		(1,002	)		(1,157	)		(1,350	)		(493	)
Equity in net earnings (losses) of unconsolidated companies		390			4,517			(15,049	)		7,358
Interest income and other, net		2,914			1,680			2,786			3,268
Reorganization items		—			(313,176	)		—			(313,176	)
Interest and other debt costs, net		(7,547	)		(10,605	)		(15,146	)		(31,613	)
Loss before income taxes	$	(5,385	)		(524,115	)		(41,093	)		(609,370	)
Depreciation and amortization:
Americas	$	3,530			10,748			6,843			22,045
Middle East/Asia Pacific		2,844			7,746			5,613			16,245
Europe/Mediterranean Sea		2,239			6,803			4,043			13,364
West Africa		4,067			9,595			8,093			19,411
		12,680			34,892			24,592			71,065
Other		5			854			10			1,709
Corporate		100			541			200			1,105
	$	12,785			36,287			24,802			73,879
Additions to properties and equipment:
Americas	$	1,230			27			2,267			27
Middle East/Asia Pacific		1,073			648			1,496			1,673
Europe/Mediterranean Sea		135			—			135			—
West Africa		—			274			1			368
		2,438			949			3,899			2,068
Other		—			—			—			—
Corporate (C)		1,659			678			1,876			7,632
	$	4,097			1,627			5,775			9,700

(A) Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

(B) Refer to Note (14) for additional information regarding asset impairment.

(C) Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not yet been assigned to a non-corporate reporting segment as of the dates presented.

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The following table provides a comparison of total assets at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
Total assets (A):
Americas (B)	$	310,121		164,958
Middle East/Asia Pacific		215,105		48,268
Europe/Mediterranean Sea		167,695		171,157
West Africa (C)		486,333		864,299
		1,179,254		1,248,682
Other		363		2,443
		1,179,617		1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,335		29,216
		1,180,953		1,280,341
Corporate (D)		462,589		465,839
	$	1,643,542		1,746,180

(A) The company’s segment level assets as of June 30, 2018, reflect the elimination of certain intersegment balances.

(B) Americas segment assets include cash held by non-corporate subsidiaries of $94.6 million and 95.1 million, as of June 30, 2018 and December 31, 2017, respectively.

(C) West Africa segment assets include due from related parties of $197.1 million and $263.7 million as of June 30, 2018 and December 31, 2017, respectively.

(D) Corporate includes cash (including restricted cash) of $353.2 million and $336.4 million as of June 30, 2018 and December 31. 2017, respectively. Also included in Corporate is a vessel under construction which has not yet been assigned to a non-corporate reporting segment. A vessel’s construction costs are reported in Corporate until the earlier of the date the vessel is assigned to a non-corporate reporting segment or the date it is delivered. At June 30, 2018 and December 31, 2017, $11.2 million and $9.3 million, respectively, of vessel construction costs are included in Corporate.

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The following table compares revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue for the quarters and six month periods ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor):

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
Vessel revenue by vessel class (In thousands)			% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue						% of Vessel Revenue
Americas fleet:
Deepwater	$	22,661		22	%		17,313		15	%	$	38,866		20	%		80,144			30	%
Towing-supply		7,560		7	%		11,274		10	%		14,406		8	%		26,012			10	%
Other		2,380		2	%		3,300		3	%		5,410		3	%		6,264			2	%
Total	$	32,601		31	%		31,887		28	%	$	58,682		31	%		112,420			42	%
Middle East/Asia Pacific fleet:
Deepwater	$	9,603		9	%		10,701		10	%	$	19,167		10	%		20,134			7	%
Towing-supply		12,783		12	%		17,065		15	%		21,607		11	%		34,310			13	%
Other		20		<1	%		—		—			20		<1	%		—			—
Total	$	22,406		21	%		27,766		25	%	$	40,794		21	%		54,444			20	%
Europe/Mediterranean Sea fleet:
Deepwater	$	12,596		12	%		8,237		8	%	$	21,616		11	%		18,090			7	%
Towing-supply		761		1	%		2,794		2	%		1,364		1	%		3,116			1	%
Other		—		—			—		—			—		—			(9	)		(<1	%)
Total	$	13,357		13	%		11,031		10	%	$	22,980		12	%		21,197			8	%
West Africa fleet:
Deepwater	$	14,314		14	%		13,921		12	%	$	28,252		15	%		27,100			10	%
Towing-supply		17,321		17	%		24,225		22	%		33,460		17	%		46,697			17	%
Other		4,175		4	%		3,427		3	%		7,500		4	%		7,304			3	%
Total	$	35,810		35	%		41,573		37	%	$	69,212		36	%		81,101			30	%
Worldwide fleet:
Deepwater	$	59,174		57	%		50,172		45	%	$	107,901		56	%		145,468			54	%
Towing-supply		38,425		37	%		55,358		49	%		70,837		37	%		110,135			41	%
Other		6,575		6	%		6,727		6	%		12,930		7	%		13,559			5	%
Total	$	104,174		100	%		112,257		100	%	$	191,668		100	%		269,162			100	%

(14) ASSET IMPAIRMENTS

Management estimates the fair value of each vessel not expected to return to active service (considered Level 3, as defined by ASC 820, Fair Value Measurements and Disclosures) by considering items such as the vessel’s age, length of time stacked, likelihood of a return to active service and actual recent sales of similar vessels, among others. For vessels with more significant carrying values, we obtain an estimate of the fair value of the stacked vessel from third-party appraisers or brokers for use in our determination of fair value estimates.

Stacked vessels expected to return to active service are generally newer vessels, have similar capabilities and likelihood of future active service as other currently operating vessels, are generally current with classification societies in regards to their regulatory certification status, and are being actively marketed. Stacked vessels expected to return to service are evaluated for impairment as part of their assigned active asset group and not individually.

The company reviews the vessels in its active fleet for impairment whenever events occur or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. In such evaluation, the estimated future undiscounted cash flows generated by an asset group are compared with the carrying amount of the asset group to determine if a write-down may be required. If an asset group fails the undiscounted cash flow test, the company estimates the fair value of each asset group and compares such estimated fair value, considered Level 3, as defined by ASC 820, Fair Value Measurements and Disclosures, to the carrying value of each asset group in order to determine if impairment exists. Similar to stacked vessels, management obtains estimates of the fair values of the active vessels from third party appraisers or brokers for use in determining fair value estimates.

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The below table summarizes the number of vessels impaired and the amount of the impairment incurred during the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands, except number of vessels impaired)	2018		2017		2018		2017
Number of vessels impaired in the period (A)		2		77		15		89
Amount of impairment incurred	$	1,215		163,423		7,401		228,280

(A) For the quarter and six months periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively and for the six month period ended June 30, 2017 there were 83 stacked vessels and 6 active vessels impaired, respectively.  

(15) SUBSEQUENT EVENT

On July 15, 2018, the company and GulfMark Offshore, Inc. (“GulfMark”) entered into a definitive merger agreement to combine the two companies. Under the terms of the agreement, GulfMark stockholders will receive 1.1 shares of company common stock for each share of GulfMark common stock.  Each GulfMark noteholder warrant will be automatically converted into the right to receive 1.1 company shares, subject to Jones Act restrictions on maximum ownership of shares by non-U.S. citizens.  The company will assume GulfMark's obligations under existing GulfMark equity warrants. Upon completion of the proposed merger, the company’s and GulfMark’s stockholders will own approximately 74 percent and 26 percent, respectively, of the combined company.

The proposed merger is expected to close in the fourth quarter of 2018, subject to regulatory and other customary closing conditions, including approval from the stockholders of the company and GulfMark. If the merger agreement is terminated under certain circumstances, the company may be obligated to pay GulfMark a termination fee of $35.0 million, and GulfMark may be obligated to pay the company a termination fee of $13.0 million.  

On August 6, 2018, GulfMark issued a press release confirming receipt of a non-binding, unsolicited proposal from HGIM Corp. (“Harvey Gulf”) to combine the companies through a merger in which GulfMark would acquire Harvey Gulf, with the combined company remaining publicly listed and GulfMark stockholders owning 41.2% of the combined company.  According to GulfMark, its Board of Directors, with the assistance of outside financial and legal advisors, will review the Harvey Gulf unsolicited proposal.  In that same press release, the GulfMark Board of Directors confirmed its belief that, at the time of the release, the Tidewater merger is in the best interests of GulfMark's stockholders and continues to recommend that GulfMark stockholders adopt the merger agreement at the special meeting of GulfMark stockholders to be scheduled for this fall.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

FORWARD-LOOKING STATEMENT

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the company notes that this Quarterly Report on Form 10-Q and the information incorporated herein by reference contain certain forward-looking statements which reflect the company’s current view with respect to future events and future financial performance. Forward-looking statements are all statements other than statements of historical fact. All such forward-looking statements are subject to risks and uncertainties, and the company’s future results of operations could differ materially from its historical results or current expectations reflected by such forward-looking statements. Some of these risks are discussed in this Quarterly Report on Form 10-Q and include, without limitation, the ability of the company to complete the proposed transaction with GulfMark Offshore, Inc. (the “proposed merger”) on the anticipated terms and timetable, if at all; the ability to obtain shareholder and government approval of the proposed merger; the ability to satisfy various other conditions to the closing of the transaction; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the possibility of litigation (related to the proposed merger); the diversion of management’s time from day-to-day operations by the proposed merger; the difficulty attracting, motivating and retaining executives and other employees with the proposed merger pending; restrictions on the conduct of business pursuant to the merger agreement; incurrence of substantial transaction-related costs; new accounting policies and our consolidation activities; volatility in worldwide energy demand and oil and gas prices, and continuing depressed levels of oil and gas prices without a clear indication of if, or when, prices will recover to a level to support renewed offshore exploration activities; fleet additions by competitors and industry overcapacity; our limited capital resources available to replenish our asset base, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers in the energy industry and the industry expectations for offshore exploration, field development and production; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel construction and maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; the risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; the effects of asserted and unasserted claims and the extent of available insurance coverage; and the resolution of pending legal proceedings.

Forward-looking statements, which can generally be identified by the use of such terminology as “may,” “can,” “potential,” “expect,” “project,” “target,” “anticipate,” “estimate,” “forecast,” “believe,” “think,” “could,” “continue,” “intend,” “seek,” “plan,” and similar expressions contained in this Quarterly Report on Form 10-Q, are not guarantees of future performance or events. Any forward-looking statements are based on the company’s assessment of current industry, financial and economic information, which by its nature is dynamic and subject to rapid and possibly abrupt changes, which the company may or may not be able to control.  Further, the company may make changes to its business plans that could or will affect its results. While management believes that these forward-looking statements are reasonable when made, there can be no assurance that future developments that affect us will be those that we anticipate and have identified. The forward-looking statements should be considered in the context of the risk factors listed above and discussed in Item 1A included in the company’s Transition Report on Form 10-K for the nine month period ended December 31, 2017, filed with the Securities and Exchange Commission (SEC) on March 15, 2018, as updated by subsequent filings with the SEC. Investors and prospective investors are cautioned not to rely unduly on such forward-looking statements, which speak only as of the date hereof. Management disclaims any obligation to update or revise any forward-looking statements contained herein to reflect new information, future events or developments.

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In certain places in this Quarterly Report on Form 10-Q, we may refer to reports published by third parties that purport to describe trends or developments in energy production and drilling and exploration activity. The company does so for the convenience of our investors and potential investors and in an effort to provide information available in the market that will lead to a better understanding of the market environment in which the company operates. The company specifically disclaims any responsibility for the accuracy and completeness of such information reports and undertakes no obligation to update such information.

The following information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included in Item 1 of this Quarterly Report and related disclosures and the company’s Transition Report on Form 10-K for the nine month period ended December 31, 2017, filed with the SEC on March 15, 2018.

About Tidewater

The company’s vessels and associated vessel services provide support for all phases of offshore exploration, field development and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover and production activities; offshore construction and seismic and subsea support; and a variety of specialized services such as pipe and cable laying. Our offshore support vessel fleet includes vessels that are operated under joint ventures, as well as vessels that have been stacked. At June 30, 2018, we owned or chartered 204 vessels (excluding eight joint venture vessels, but including 66 stacked vessels) available to serve the global energy industry.

The company has one of the broadest geographic operating footprints in the offshore energy industry with operations in most of the world’s significant offshore crude oil and natural gas exploration and production regions. Our global operating footprint allows us to react quickly to changing local market conditions and to be responsive to the changing requirements of the many customers with which we believe we have strong relationships. The company is also one of the most experienced international operators in the offshore energy industry with over 60 years of international experience.

Recent Developments

On July 15, 2018, the company and GulfMark Offshore, Inc. (“GulfMark”) entered into a definitive merger agreement to combine the two companies. Under the terms of the agreement, GulfMark stockholders will receive 1.1 shares of company common stock for each share of GulfMark common stock.  Each GulfMark noteholder warrant will be automatically converted into the right to receive 1.1 company shares, subject to Jones Act restrictions on maximum ownership of shares by non-U.S. citizens.  The company will assume GulfMark's obligations under existing GulfMark equity warrants. Upon completion of the proposed merger, the company’s and GulfMark’s stockholders will own approximately 74 percent and 26 percent, respectively, of the combined company.

The proposed merger is expected to close in the fourth quarter of 2018, subject to regulatory and other customary closing conditions, including approval from the stockholders of the company and GulfMark. If the merger agreement is terminated under certain circumstances, the company may be obligated to pay GulfMark a termination fee of $35.0 million and GulfMark may be obligated to pay the company a termination fee of $13.0 million.  

On August 6, 2018, GulfMark issued a press release confirming receipt of a non-binding, unsolicited proposal from HGIM Corp. (“Harvey Gulf”) to combine the companies through a merger in which GulfMark would acquire Harvey Gulf, with the combined company remaining publicly listed and GulfMark stockholders owning 41.2% of the combined company.  According to GulfMark, its Board of Directors, with the assistance of outside financial and legal advisors, will review the Harvey Gulf unsolicited proposal.  In that same press release, the GulfMark Board of Directors confirmed its belief that, at the time of the release, the Tidewater merger is in the best interests of GulfMark's stockholders and continues to recommend that GulfMark stockholders adopt the merger agreement at the special meeting of GulfMark stockholders to be scheduled for this fall.

Reorganization and Fresh Start Accounting

References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the company through July 31, 2017.

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On July 31, 2017, the company and certain of its subsidiaries that had been named as additional debtors in the Chapter 11 proceedings emerged from bankruptcy after successfully completing its financial reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of the company and its Affiliated Debtors (the “Plan”). Upon the company's emergence from Chapter 11 bankruptcy, the company qualified for and adopted fresh-start accounting in accordance with the provisions set forth in ASC 852, which requires the company to present its assets, liabilities, and equity as if it were a new entity upon emergence from bankruptcy. The implementation of the Plan and the application of fresh-start accounting materially changed the carrying amounts and classifications reported in the company’s consolidated financial statements and resulted in the company becoming a new entity for financial reporting purposes. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan, the financial statements after July 31, 2017 are not comparable with the financial statements prior to July 31, 2017. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor companies.

Principal Factors That Drive Our Revenues

The company’s revenues, net earnings and net cash provided by (used in) operating activities are largely dependent upon the activity level of its offshore marine vessel fleet. As is the case with the numerous other vessel operators in our industry, our business activity is largely dependent on the level of exploration, field development and production activity of our customers. Our customers’ business activity, in turn, is dependent on crude oil and natural gas prices, which fluctuate depending on expected future levels of supply and demand for crude oil and natural gas, and on estimates of the cost to find, develop and produce reserves.

The company’s revenues in all segments are driven primarily by the company’s fleet size, vessel utilization and day rates. Because a sizeable portion of the company’s operating costs and its depreciation does not change proportionally with changes in revenue, the company’s operating profit is largely dependent on revenue levels.

Principal Factors That Drive Our Operating Costs

Operating costs consist primarily of crew costs, repair and maintenance costs, insurance costs and loss reserves, fuel, lube oil and supplies costs and other vessel operating costs. Fleet size, fleet composition, geographic areas of operation, supply and demand for marine personnel, and local labor requirements are the major factors which affect overall crew costs in all segments. In addition, the company’s newer, more technologically sophisticated PSVs and AHTS vessels generally require a greater number of specially trained, more highly compensated fleet personnel than the company’s older, smaller and less sophisticated vessels. Crew costs may increase if competition for skilled personnel intensifies, though a weaker offshore energy market should somewhat mitigate any potential inflation of crew costs.

Concurrent with emergence from Chapter 11 bankruptcy, the Successor Company adopted a new policy for the recognition of the costs of planned major maintenance activities incurred to ensure compliance with applicable regulations and maintain certifications for vessels with classification societies. These costs include drydocking and survey costs necessary to maintain certifications and generally occur twice in every five year period. These recertification costs are typically incurred while the vessel is in drydock and may be incurred concurrent with other vessel maintenance and improvement activities. Costs related to the recertification of vessels are deferred and amortized over 30 months on a straight-line basis. Maintenance costs incurred at the time of the recertification drydocking that are not related to the recertification of the vessel are expensed as incurred. Costs related to vessel improvements that either extend the vessel’s useful life or increase the vessel’s functionality are capitalized and depreciated. The company’s previous policy (Predecessor) was to expense vessel recertification costs in the period incurred.

Insurance and loss reserves costs are dependent on a variety of factors, including the company’s safety record and pricing in the insurance markets, and can fluctuate over time. The company’s vessels are generally insured for up to their estimated fair market value in order to cover damage or loss resulting from marine casualties, adverse weather conditions, mechanical failure, collisions, and property losses to the vessel. The company also purchases coverage for potential liabilities stemming from third-party losses with limits that it believes are reasonable for its operations but does not generally purchase business interruption insurance or similar coverage. Insurance limits are reviewed annually, and third-party coverage is purchased based on the expected scope of ongoing operations and the cost of third-party coverage.

Fuel and lube costs can also fluctuate in any given period depending on the number and distance of vessel mobilizations, the number of active vessels off charter, drydockings, and changes in fuel prices. The company also incurs vessel operating costs that are aggregated as “other” vessel operating costs. These costs consist of brokers’ commissions, including commissions paid to unconsolidated joint venture companies, training costs and other miscellaneous costs. Brokers’

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commissions are incurred primarily in the company’s non-United States operations where brokers often assist in obtaining work for the company’s vessels. Brokers generally are paid a percentage of day rates, and accordingly, commissions paid to brokers generally fluctuate in accordance with vessel revenue. Other costs include, but are not limited to, satellite communication fees, agent fees, port fees, canal transit fees, vessel certification fees, the amortization of previously deferred mobilization costs, temporary vessel importation fees and any fines or penalties.

Sonatide Joint Venture

The company has previously disclosed the significant financial and operational challenges that it confronts with respect to its operations in Angola, as well as steps that the company has taken to address or mitigate those risks. Most of the company’s attention has been focused in three areas: (i) reducing the net receivable balance due to the company from Sonatide, its Angolan joint venture with Sonangol, for vessel services; (ii) reducing the foreign currency risk created by virtue of provisions of Angolan law that require that payment for a significant  portion of the services provided by Sonatide be paid in Angolan kwanza; and (iii) optimizing opportunities, consistent with Angolan law, for services provided by the company to be paid for directly in U.S. dollars. These challenges, and the company’s efforts to respond, continue.

Amounts due from Sonatide (Due from affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $153 million and $230 million, respectively, represent cash received by Sonatide from customers and due to the company, amounts due from customers that are expected to be remitted to the company through Sonatide and costs incurred by the company on behalf of Sonatide. Approximately $25 million of the balance at June 30, 2018 represents invoiced but unpaid vessel revenue related to services performed by the company through the Sonatide joint venture. Remaining amounts due to the company from Sonatide are, in part, supported by approximately $67 million of cash held by Sonatide, of which the equivalent of $43 million is denominated in Angolan kwanzas, pending conversion into U.S. dollars and subsequent expatriation. In addition, the company owes Sonatide the aggregate sum of approximately $47 million, including $30 million in commissions payable by the company to Sonatide. The company monitors the aggregate amounts due from Sonatide relative to the amounts due to Sonatide.

For the six months ended June 30, 2018, the company collected (primarily through Sonatide) approximately $51 million from its Angolan operations. Of the $51 million collected, approximately $47 million were U.S. dollars received by Sonatide on behalf of the company or U.S. dollars received directly by the company from customers. The balance of $4 million collected reflects Sonatide’s conversion of Angolan kwanza into U.S. dollars and the subsequent expatriation of the dollars and payment to the company. The company also reduced the respective due from affiliates and due to affiliates balances by approximately $55 million during the six months ended June 30, 2018 through netting transactions based on an agreement with the joint venture.

Amounts due to Sonatide (Due to affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $47 million and $99 million, respectively, represents amounts due to Sonatide for commissions payable and other costs paid by Sonatide on behalf of the company.

The company believes that the process for converting Angolan kwanzas continues to function, but the relative scarcity of U.S. dollars in Angola continues to hinder the conversion process. Sonatide continues to press the commercial banks with which it has relationships to increase the amount of U.S. dollars that are made available to Sonatide.

For the six month period ended June 30, 2018, the company’s Angolan operations generated vessel revenues of approximately $29 million, or 15%, of its consolidated vessel revenue, from an average of approximately 38 company-owned vessels that are marketed through the Sonatide joint venture (17 of which were stacked on average during the six months ended June 30, 2018).  For the six months ended June 30, 2017, the company’s Angolan operations generated vessel revenues of approximately $53 million, or 20%, of consolidated vessel revenue, from an average of approximately 53 company-owned vessels (23 of which were stacked on average during the six months ended June 30, 2017).

In addition to vessels that Sonatide charters from the company, Sonatide owns seven vessels (five of which are currently stacked) and certain other assets, in addition to earning commission from company-owned vessels marketed through the Sonatide joint venture (owned 49% by the company). As of June 30, 2018 and December 31, 2017, the carrying value of the company’s investment in the Sonatide joint venture, which is included in “Investments in, at equity, and advances to unconsolidated companies,” was $0 and approximately $27 million, respectively. During the six months ended June 30, 2018, the exchange rate of the Angolan kwanza versus the U.S. dollar was devalued from a ratio of approximately 168 to 1 to a ratio of approximately 250 to 1, or approximately 49%. As a result, the company recognized 49% of the total foreign exchange loss, or approximately $20.6 million through equity in net earnings (losses) of unconsolidated companies.

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Also during the quarter ended June 30, 2018, the company received a dividend from Sonatide of $12.3 million which reduced the carrying value of the company’s investment in Sonatide to zero.  Approximately $4.9 million of dividends received in excess of the investment balance was recognized in earnings during the quarter ended June 30, 2018.

Management continues to explore ways to profitably participate in the Angolan market while evaluating opportunities to reduce the overall level of exposure to the increased risks that the company believes characterize the Angolan market. Included among mitigating measures taken by the company to address these risks is the redeployment of vessels from time to time to other markets. Redeployment of vessels to and from Angola since June 30, 2017has resulted in a net 8 vessels transferred out of Angola. Company-owned vessels operating in Angola decreased by 47 vessels, from June 30, 2014 to June 30, 2018 (from 84 vessels to 37 vessels).  Company-owned active vessels decreased in the same period by 58 vessels (from 80 vessels to 22 vessels).

International Labour Organization’s Maritime Labour Convention

The International Labour Organization's Maritime Labour Convention, 2006 (the "Convention") mandates globally, among other things, seafarer living and working conditions (accommodations, wages, conditions of employment, health and other benefits) aboard ships that are engaged in commercial activities.  Since its initial entry into force on August 20, 2013, 84 countries have now ratified the Convention.

The company continues to prioritize certification of its vessels to Convention requirements based on the dates of enforcement by countries in which the company has operations, performs maintenance and repairs at shipyards, or may make port calls during ocean voyages. Once obtained, vessel certifications are maintained, regardless of the area of operation. Additionally, where possible, the company continues to work with its operationally identified flag states to seek substantial equivalencies to comparable national and industry laws that meet the intent of the Convention and allow the company to standardize operational protocols among its fleet of vessels that work in various areas around the world.

Macroeconomic Environment and Outlook

The primary driver of our business (and revenues) is the level of our customers’ capital and operating expenditures for offshore oil and natural gas exploration, field development and production. These expenditures, in turn, generally reflect our customers’ expectations for future oil and natural gas prices, economic growth, hydrocarbon demand, estimates of current and future oil and natural gas production, the relative cost of exploring, developing and producing onshore and offshore oil and natural gas, and our customers’ ability to access exploitable oil and natural gas resources. Current and future estimated prices of crude oil and natural gas are critical factors in our customers’ investment and spending decisions, including their decisions to contract drilling rigs and offshore support vessels in support of offshore exploration, field development and production activities in the various global geographic markets.

After a significant decrease in the price of oil during calendar years 2014 and 2015 largely due to an increase in global supply without a commensurate increase in worldwide demand, the price of crude oil, though volatile, generally increased during the calendar years 2016 and 2017. Our longer-term utilization and average day rate trends for our vessels will generally correlate with demand for, and the price of, crude oil, which at the end of June 2018 was trading around $74 per barrel for West Texas Intermediate (WTI) crude and $75 per barrel for Intercontinental Exchange (ICE) Brent crude, up from $50 and $52 per barrel for WTI and ICE Brent, respectively, at the end of December 2017. Several analysts expect that oil production will continue to rise (led by North America) and that this should balance the market, if not create a supply surplus over the near to immediate term. A supply surplus would likely exert downward pressure on the recently improved market prices for crude oil.

A recovery in onshore exploration, development and production activity and spending, and in North American onshore activity and spending in particular as noted above, is underway and is expected to continue if oil and gas prices remain at current levels or continue to rise. However, a recovery in offshore activity and spending, much of which takes place in the international markets, is expected to lag increases in onshore exploration, development and production activity and spending. These same analysts also expect that any material improvements in offshore exploration and development activity would likely not occur until calendar year 2019 or calendar year 2020, the timing of which is generally consistent with the trend of the projected global working offshore rig count according to recent IHS-Markit reports, as there are indications that exploration and production companies will remain conservative with their offshore-related capital expenditures in the near future.

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The production of unconventional gas resources in North America and the commissioning of a number of Liquefied Natural Gas (LNG) export facilities around the world have contributed to an oversupplied natural gas market. Some analysts have noted that natural gas is being produced at historically high levels while consumption, at least in the United States, has waned somewhat in 2017 primarily as a result of less demand by the electric power sector. At the end of June 2018, natural gas was trading in the U.S. at approximately $3.00 per Mcf, which was comparable to natural gas prices reported by the U.S. Energy Information Administration at the end of December 2017. Generally, high levels of onshore gas production and the prolonged downturn in natural gas prices experienced over the previous several years have had a negative impact on the offshore exploration and development plans of energy companies and the demand for offshore support vessel services.

Deepwater activity is a significant segment of the global offshore crude oil and natural gas markets, and development typically involves significant capital investment and multi-year development plans. Such projects are generally underwritten by the participating exploration, field development and production companies using relatively conservative crude oil and natural gas pricing assumptions. Although these projects are generally less susceptible to short-term fluctuations in the price of crude oil and natural gas, deepwater exploration and development projects can be more costly relative to onshore and non-deepwater offshore exploration and development. As a result, lower and volatile crude oil prices and a relatively greater emphasis on onshore exploration, development and production activity and spending have caused, and may continue to cause, many of our customers and potential customers to reevaluate and further reduce their future capital expenditures in regards to offshore projects, in general, and deepwater projects, in particular.

Data published by IHS-Markit in June of 2018 estimate that the worldwide movable offshore drilling rig count is 850 rigs, of which approximately 435 offshore rigs were working in June of 2018, a slight increase over the approximate 430 working rigs in June of 2017, and a decrease of approximately 9%, or 45 working rigs, from the number of working rigs in June of 2016. While the supply of, and demand for, offshore drilling rigs that meet the technical requirements of end user exploration and development companies may be key drivers of pricing for contract drilling services, the company believes that the number of rigs working offshore (rather than the total population of moveable offshore drilling rigs or the pricing for contract drilling services) is a more reliable indicator of overall offshore activity levels and the demand for offshore support vessel services.

According to IHS-Markit, of the estimated 850 movable offshore rigs worldwide, approximately 30%, or approximately 255 rigs, are designed to operate in deeper waters. Of the approximately 435 working offshore rigs at the end of June 2018, approximately 120 rigs, or 28%, are designed to operate in deeper waters. Utilization of deepwater rigs at the end of June 2018 was approximately 47% (120 working deepwater rigs divided by 255 total deepwater rigs). At the end of June 2018, the approximate 120 working deepwater rigs was comparable to the approximate number of working deepwater rigs at the end of June 2017 and down 20%, or approximately 30 working deepwater rigs, from the number of working deepwater rigs at the end of June 2016. IHS-Markit also estimates that approximately 29% of the approximate 140 total offshore rigs currently under construction, or approximately 40 rigs, are being built to operate in deeper waters, suggesting that new build deepwater rigs represent approximately 33% of the approximately 120 deepwater rigs working at the end of June 2018. There is uncertainty as to whether the deepwater rigs currently under construction will increase the working fleet or merely replace older, less productive drilling units. As a result, it is not clear what impact the delivery of additional rigs (deepwater and otherwise) within the next several years will have on the working rig count, especially in an environment of reduced offshore exploration and development spending.

Also, according to IHS-Markit, of the estimated 850 movable offshore rigs worldwide, approximately 61%, or approximately 515 rigs, are jack-up rigs. Of the approximately 435 working offshore rigs, approximately 290 rigs, or 67%, are jack-up rigs. As of the end of June 2018, the number of working jack-up rigs was nominally higher than the number of jack-up rigs that were working at the end of June 2017, suggesting that worldwide shallow-water exploration and production activity has at least stabilized during the last twelve months, despite a slight decrease of approximately 3%, or 10 working rigs, from the number of working rigs at the end of June 2016. Utilization of jack-up rigs at the end of June 2018 was approximately 56% (290 working jack-up rigs divided by 515 total jack-up rigs). The construction backlog for new jack-up rigs at the end of June 2018 (90 rigs) has been reduced from the jack-up construction backlog at the end of June 2017 by approximately 10 rigs. Nearly all of the jack-up rigs currently under construction are scheduled for delivery in the next 24 months, although the timing of such deliveries as scheduled remains uncertain given the generally depressed offshore rig market that currently exists. As discussed above with regards to the deepwater rig market and recognizing that 90 new build jack-up rigs represent 31% of the approximately 290 jack-up rigs working at the end of June 2018, there is also uncertainty as to how many of the jack-up rigs currently under construction, if delivered, will either increase the working fleet or replace older, less productive jack-up rigs.

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The floating production unit market is also a current source of demand for offshore support vessels and also has potential to grow as a source of additional demand for offshore support vessels. Approximately 52 new floating production units are under construction, most of which are scheduled to be delivered over the next eighteen months. If delivered, these new units will supplement the approximately 375 floating production units currently operating worldwide, which is slightly higher than the number of floating production units working in June 2017 and approximately 9% higher than the number of floating production units working in June 2016. While the recent market trend in working floating production units currently appears to be a net positive for the offshore support vessel market, the risk of cancellation of some new build contracts or the stacking of currently operating floating production units remains.

In June 2018, the worldwide fleet of offshore support vessels (deepwater PSVs, deepwater AHTS vessels and towing-supply vessels only) is estimated at approximately 3,520 vessels which includes approximately 550 vessels, or approximately 16%, that are at least 25 years old and exceeding original expectations of their estimated economic lives. An additional 445 vessels, or 13% of the worldwide fleet, are at least 15 years old, but less than 25 years old. Older offshore support vessels, whether such vessels are at least 25 years old or at least 15 years old, could potentially be removed from the market if the cost of extending such vessels’ lives is not economical, especially in light of recent market conditions.

Also, according to IHS-Markit, there are approximately 240 new-build offshore support vessels (deepwater PSVs, deepwater AHTS vessels and towing-supply vessels only) either under construction (215 vessels), on order or planned at the end of June 2018. The majority of the vessels under construction are scheduled to be delivered within the next 12 to 24 months; however, the company does not anticipate that all, or even a majority, of these vessels will ultimately be completed based on current and expected future offshore exploration and development activity, in addition to the substantial oversupply that still exists. Further increases in worldwide vessel capacity, due to either newbuild deliveries, or stacked vessel reactivations, would tend to have the effect of lowering charter rates, particularly when there are lower levels of exploration, field development and production activity.

Excluding the 550 vessels that are at least 25 years old from the overall population, the number of offshore support vessels under construction (215 vessels) represents approximately 7% of the remaining worldwide fleet of approximately 2,970 offshore support vessels. Excluding the 995 vessels that are at least 15 years old from the overall population, the number of offshore support vessels under construction (215 vessels) represents approximately 9% of the remaining worldwide fleet of approximately 2,525 offshore support vessels.

Since late 2014, the number of older offshore support vessels that have been removed from market has not been sufficient to counteract the significant reduction in offshore exploration, development and production activity by our customers. As a result, we and other offshore support vessel owners have also selectively stacked more recently constructed vessels. Should market conditions further deteriorate, the stacking or underutilization of additional, more recently constructed vessels by the offshore support vessel industry is likely.

Although the future attrition rate of older offshore support vessels cannot be determined with certainty, we believe that the retirement and/or sale to owners outside of the oil and gas market of a vast majority of these aged vessels (a majority of which the company believes have already been stacked or are not being actively marketed to oil and gas development-focused customers by the vessels’ owners) could mitigate the potential negative effects on vessel utilization and vessel pricing of (i) additional offshore support vessel supply resulting from the delivery of additional new-build vessels and/or (ii) reduced demand for offshore support vessels resulting from further reductions in offshore exploration, development and production spending by our customers.

Alternatively, the cancellation or deferral of delivery of some portion of the offshore support vessels that are under construction could mitigate the potential negative effects on vessel utilization and vessel pricing of reduced offshore exploration, development and production spending by our customers. To the extent the significant increase in crude oil prices that began in early 2016 ultimately leads to an increase both in offshore spending by our customers and additional vessel demand, additional vessel demand could also mitigate the possible negative effects of the new-build vessels being added to the global offshore support vessel fleet. In addition, the need to incur and fund recertification and other maintenance costs, particularly for vessels that have been stacked, may have an impact on the availability of vessels to support customers’ future offshore exploration, development and production activity, and could have a positive impact on the charter rates that vessel owners are able to secure for those vessels that have current certifications with the relevant classification societies and are otherwise available to work.

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The company believes that a material improvement in vessel utilization and vessel pricing will require a combination of increased vessel demand and a reduction in vessel supply, including the retirement of a majority of the vessels that are older than 15 years. Absent a significant and unexpected increase in vessel demand, we believe that low vessel utilization and average day rates will likely persist across the offshore support vessel industry, at least in the near to intermediate term, due to the current overcapacity in the worldwide offshore support vessel fleet. It is also possible that overcapacity and excess financial leverage will lead to industry consolidation and/or business failures within the global offshore support vessel industry.

Results of Operations

During the quarter ended March 31, 2018 the company’s Africa/Europe segment was split as a result of management realignment such that the company’s operations in Europe and Mediterranean Sea regions and the company’s West African regions are now separately reported segments. As such, the company now discloses these new segments as Europe/Mediterranean Sea and West Africa, respectively. The company’s Americas and Middle East/Asia Pacific segments are not affected by this change. This new segment alignment is consistent with how the company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Prior year amounts have been recast to conform to the new segment alignment.

The following table compares vessel revenues and vessel operating costs (excluding general and administrative expenses, depreciation and amortization expense, vessel operating leases and gains on asset dispositions, net) for the company’s owned and operated vessel fleet and the related percentage of vessel revenue for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%					%
Vessel revenues:
Americas (A)	$	32,601		31	%		31,887		28	%		58,682		31	%		112,420		42	%
Middle East/Asia Pacific		22,406		21	%		27,766		25	%		40,794		21	%		54,444		20	%
Europe/Mediterranean Sea		13,357		13	%		11,031		10	%		22,980		12	%		21,197		8	%
West Africa		35,810		35	%		41,573		37	%		69,212		36	%		81,101		30	%
Total vessel revenues	$	104,174		100	%		112,257		100	%		191,668		100	%		269,162		100	%
Vessel operating costs:
Crew costs	$	36,368		35	%		42,210		38	%		70,592		37	%		84,039		31	%
Repair and maintenance		7,978		8	%		13,844		12	%		15,682		8	%		30,918		11	%
Insurance and loss reserves		2,191		2	%		3,124		3	%		1,120		2	%		1,357		1	%
Fuel, lube and supplies		8,181		8	%		9,428		8	%		17,193		9	%		18,707		7	%
Other		13,294		13	%		15,167		14	%		24,789		13	%		29,597		11	%
Total vessel operating costs	$	68,012		65	%		83,773		75	%		129,376		69	%		164,618		61	%

(A) Included in Americas vessel revenue for the six months ended June 30, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

The following table compares other operating revenues and costs related to brokered vessels, ROVs and other miscellaneous marine-related activities for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Other operating revenues	$	1,427		2,849		5,426		6,693
Costs of other operating revenues		642		1,585		3,116		4,274

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The following table presents vessel operating costs by our four geographic segments, the related segment vessel operating costs as a percentage of segment vessel revenues, total vessel operating costs and the related total vessel operating costs as a percentage of total vessel revenues for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%						%
Vessel operating costs:
Americas:
Crew costs	$	11,158		34	%		14,457		45	%		20,251		34	%		30,218			27	%
Repair and maintenance		1,529		5	%		3,841		12	%		3,259		6	%		6,727			6	%
Insurance and loss reserves		1,031		3	%		933		3	%		480		1	%		414			1	%
Fuel, lube and supplies		1,792		5	%		3,394		11	%		3,410		6	%		7,290			6	%
Other		2,790		9	%		4,655		15	%		3,196		5	%		8,210			7	%
		18,300		56	%		27,280		86	%		30,596		52	%		52,859			47	%
Middle East/Asia Pacific:
Crew costs	$	8,596		38	%		9,795		35	%		16,704		41	%		19,290			35	%
Repair and maintenance		1,594		7	%		2,675		10	%		3,057		7	%		8,981			17	%
Insurance and loss reserves		383		2	%		681		2	%		233		1	%		(51	)		(<1	%)
Fuel, lube and supplies		2,221		10	%		1,539		6	%		4,560		11	%		4,082			8	%
Other		2,578		12	%		2,908		10	%		5,320		13	%		6,259			11	%
		15,372		69	%		17,598		63	%		29,874		73	%		38,561			71	%
Europe/Mediterranean Sea:
Crew costs	$	5,777		43	%		5,593		51	%		10,768		47	%		10,520			50	%
Repair and maintenance		1,983		15	%		3,227		29	%		3,561		15	%		4,488			21	%
Insurance and loss reserves		247		2	%		426		4	%		357		2	%		652			3	%
Fuel, lube and supplies		1,136		8	%		1,393		13	%		2,946		13	%		2,494			12	%
Other		1,459		11	%		1,835		16	%		3,065		13	%		3,229			15	%
		10,602		79	%		12,474		113	%		20,697		90	%		21,383			101	%
West Africa:
Crew costs	$	10,837		30	%		12,365		30	%		22,869		33	%		24,011			30	%
Repair and maintenance		2,872		8	%		4,101		10	%		5,805		9	%		10,722			13	%
Insurance and loss reserves		530		1	%		1,084		3	%		50		<1	%		342			<1	%
Fuel, lube and supplies		3,032		9	%		3,102		7	%		6,277		9	%		4,841			6	%
Other		6,467		18	%		5,769		14	%		13,208		19	%		11,899			15	%
		23,738		66	%		26,421		64	%		48,209		70	%		51,815			64	%
Total vessel operating costs	$	68,012		65	%		83,773		75	%		129,376		68	%		164,618			61	%

36

The following table presents vessel operations general and administrative expenses by our four geographic segments, the related segment vessel operations general and administrative expenses as a percentage of segment vessel revenues, total vessel operations general and administrative expenses and the related total vessel operations general and administrative expenses as a percentage of total vessel revenues for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%					%
Vessel operations general and    administrative expenses:
Americas	$	5,090		16	%		5,771		18	%		10,651		18	%		12,183		11	%
Middle East/Asia Pacific		3,565		16	%		3,738		13	%		6,935		17	%		7,118		13	%
Europe/Mediterranean Sea		1,658		12	%		1,196		11	%		2,936		13	%		2,562		12	%
West Africa		6,300		18	%		7,297		18	%		12,958		19	%		15,584		19	%
Total vessel operations general and administrative expenses	$	16,613		16	%		18,002		16	%		33,480		17	%		37,447		14	%

The following table presents vessel operating leases by our four geographic segments, the related segment vessel operating leases as a percentage of segment vessel revenues, total vessel operating leases and the related total vessel operating leases as a percentage of total vessel revenues for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor				Predecessor					Successor				Predecessor
	Quarter Ended				Quarter Ended					Six Months Ended				Six Months Ended
	June 30, 2018				June 30, 2017					June 30, 2018				June 30, 2017
(In thousands)			%				%					%				%
Vessel operating leases (A):
Americas	$	—		—		3,787		12	%		—		—		10,414		9	%
Middle East/Asia Pacific		—		—		—		—			—		—		—		—
Europe/Mediterranean Sea		—		—		721		7	%		—		—		1,153		5	%
West Africa		—		—		1,034		2	%		—		—		2,418		3	%
Total vessel operating leases	$	—		—		5,542		5	%		—		—		13,985		5	%

(A) As part of the Plan of reorganization, we rejected all vessel lease agreements during the quarter ended June 30, 2017.

37

The following table presents vessel depreciation expense by the company’s geographic segments, the related segment vessel depreciation expense as a percentage of segment vessel revenues, total vessel depreciation expense and the related total vessel depreciation expense as a percentage of total vessel revenues for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%					%
Vessel depreciation expense (A):
Americas	$	3,530		11	%		10,748		34	%		6,843		12	%		22,045		20	%
Middle East/Asia Pacific		2,844		13	%		7,746		28	%		5,613		14	%		16,245		30	%
Europe/Mediterranean Sea		2,239		17	%		6,803		62	%		4,043		18	%		13,364		63	%
West Africa		4,067		11	%		9,595		23	%		8,093		12	%		19,411		24	%
Total vessel depreciation expense	$	12,680		12	%		34,892		31	%		24,592		13	%		71,065		26	%

(A) As a result of the application of fresh-start accounting upon emergence from bankruptcy, we significantly reduced the carrying value of properties and equipment.

The following table compares other operating revenues and costs related to the company’s ROV and related subsea services operations, brokered vessels and other miscellaneous marine-related activities for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor						Predecessor						Successor						Predecessor
	Quarter Ended						Quarter Ended						Six Months Ended						Six Months Ended
	June 30, 2018						June 30, 2017						June 30, 2018						June 30, 2017
(In thousands)				%						%						%						%
Other operating revenues (A)	$	1,427			100	%		2,849			100	%		5,426			100	%		6,693			100	%
Costs of other operating revenues		(642	)		(45	%)		(1,585	)		(56	%)		(3,116	)		(57	%)		(4,274	)		(64	%)
General and administrative expenses - other operating activities		(2	)		(<1	%)		(355	)		(12	%)		(16	)		(<1	%)		(880	)		(13	%)
Depreciation and amortization - other operating activities		(5	)		(<1	%)		(854	)		(30	%)		(10	)		(<1	%)		(1,709	)		(26	%)
Total other operating profit (loss)	$	778			55	%		55			2	%		2,284			43	%		(170	)		(3	%)

(A) Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

38

The following table compares operating loss and other components of loss before income taxes and its related percentage of total revenue for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor						Predecessor						Successor						Predecessor
	Quarter Ended						Quarter Ended						Six Months Ended						Six Months Ended
	June 30, 2018						June 30, 2017						June 30, 2018						June 30, 2017
(In thousands)				%						%						%						%
Vessel operating profit (loss):
Americas (A)	$	5,681			5	%		(15,699	)		(14	%)		10,592			5	%		14,919			5	%
Middle East/Asia Pacific		625			1	%		(1,316	)		(1	%)		(1,628	)		(1	%)		(7,480	)		(3	%)
Europe/Mediterranean Sea		(1,142	)		(1	%)		(10,163	)		(9	%)		(4,696	)		(2	%)		(17,265	)		(6	%)
West Africa		1,705			2	%		(2,774	)		(2	%)		(48	)		<1	%		(8,127	)		(3	%)
		6,869			7	%		(29,952	)		(26	%)		4,220			2	%		(17,953	)		(7	%)
Other operating profit (loss)		778			1	%		55			<1	%		2,284			1	%		(170	)		(<1	%)
		7,647			7	%		(29,897	)		(26	%)		6,504			2	%		(18,123	)		(7	%)
Corporate general and administrative expenses (B)		(7,810	)		(7	%)		(14,702	)		(13	%)		(14,494	)		(7	%)		(36,459	)		(13	%)
Corporate depreciation		(100	)		(<1	%)		(541	)		(<1	%)		(200	)		(<1	%)		(1,105	)		(<1	%)
Corporate expenses		(7,910	)		(7	%)		(15,243	)		(13	%)		(14,694	)		(7	%)		(37,564	)		(13	%)
Gain on asset dispositions, net		1,338			1	%		3,189			3	%		3,257			2	%		9,253			3	%
Asset impairments		(1,215	)		(1	%)		(163,423	)		(142	%)		(7,401	)		(4	%)		(228,280	)		(83	%)
Operating loss	$	(140	)		(<1	%)		(205,374	)		(178	%)		(12,334	)		(6	%)		(274,714	)		(100	%)
Foreign exchange loss		(1,002	)		(1	%)		(1,157	)		(1	%)		(1,350	)		(1	%)		(493	)		(<1	%)
Equity in net earnings (losses) of unconsolidated companies		390			<1	%		4,517			4	%		(15,049	)		(8	%)		7,358			3	%
Interest income and other, net		2,914			3	%		1,680			1	%		2,786			2	%		3,268			1	%
Reorganization items		—			—			(313,176	)		(272	%)		—			—			(313,176	)		(114	%)
Interest and other debt costs, net		(7,547	)		(7	%)		(10,605	)		(9	%)		(15,146	)		(8	%)		(31,613	)		(11	%)
Loss before income taxes	$	(5,385	)		(5	%)		(524,115	)		(455	%)		(41,093	)		(21	%)		(609,370	)		(221	%)

(A) Included in Americas vessel operating profit for the six month period ended June 30, 2017, is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

(B) Included in corporate general and administrative expenses for the quarter and six month periods ended June 30, 2017, are restructuring-related professional services costs of $6.7 million and $23.4 million, respectively. Included in corporate general and administrative expenses for the quarter and six month periods ended June 30, 2018, are professional services costs related the proposed combination with GulfMark of $1.5 million.

During the first six months of 2018, we continued to focus on identifying and implementing cost saving measures given the sharp reduction in revenues due to a continued challenging operating environment and reduced E&P spending (and reduced offshore spending in particular). Key elements of our response to these conditions during the first six months of 2018 included sustaining our offshore support vessel fleet and its global operating footprint while maintaining adequate liquidity to fund operations. During the period, operating management was focused on safe, compliant operations, minimizing unscheduled vessel downtime, improving the oversight over major repairs and maintenance projects and drydockings and maintaining disciplined cost control.

At June 30, 2018, the company had 204 owned or chartered vessels (excluding joint-venture vessels) in its fleet with an average age of 9.4 years. The average age of the company’s 138 active vessels at June 30, 2018 is 8.7 years.

39

Three Months Ended June 30, 2018 and 2017

Consolidated Results. Revenues earned for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $105.6 million and $115.1 million, respectively. Revenues have generally decreased as compared to the periods of the prior year primarily as a result of the prolonged industry downturn which has led to the operation of a smaller active vessel fleet as demand for offshore supply vessel services has decreased.

As a result of lower demand for our vessels as compared to the quarter ended June 30, 2017, we have reduced vessel operating costs and especially crew, fuel, lube and supplies and other vessel costs. Such operating costs for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $68.0 million and $83.8 million, respectively. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized. Such costs were expensed in the period incurred under the accounting policy of the Predecessor.

Depreciation expense for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) was $12.8 million and $36.3 million, respectively. Depreciation expense for Successor periods is substantially lower than that of Predecessor periods as a result of the application of fresh-start accounting upon emergence from bankruptcy, which significantly reduced the carrying value of properties and equipment. In addition, the company has scrapped or otherwise disposed of 39 vessels since June 30, 2017.

General and administrative expenses for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $24.4 million and $33.1 million, respectively, or down $8.7 million, or 26%, in the comparable periods. General and administrative expenses have decreased during the quarter  ended June 30, 2018 as compared to the comparable period of the prior year primarily as a result of lower restructuring-related professional services expenses and the company’s continuing efforts to reduce overhead costs due to the downturn in the offshore services market. Included in general and administrative expenses for the quarter ended June 30, 2017 (Predecessor) were $6.7 million of restructuring-related professional services expenses. The company did not incur any such restructuring-related professional services expenses during the quarter ended June 30, 2018 (Successor), but did incur professional services costs related to the proposed combination with GulfMark of $1.5 million. Note also that general and administrative expenses for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) included stock-based compensation of $3.2 million and $0.3 million, respectively.

We recorded $1.2 million and $163.4 million of asset impairments during the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor), respectively, primarily due to the continued stacking of underutilized vessels (as a result of the decrease in the volume of oil and gas exploration, field development and production spending by our customers) and a decline in offshore support vessel values. As of the company’s emergence from Chapter 11 bankruptcy on July 31, 2017 the company adopted fresh-start accounting and significantly reduced the carrying values of its vessels and other long-lived assets.

Interest and other debt expenses for the quarter ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $7.5 million and $10.6 million, respectively. Interest and other debt costs for the six months ended June 30, 2018 reflects our post-restructuring capital structure which includes debt of $444.8 million at June 30, 2018.

The company’s outstanding receivable from Sonatide related to our work in Angola was reduced by approximately $55 million to approximately $153 million during the quarter ended June 30, 2018 (Successor). The company’s outstanding payable to Sonatide (including commissions payable) decreased by approximately $31 million to approximately $47 million during the same period. Sonatide has had some success in obtaining contracts that allow for a portion of services in Angola to be paid in dollars, has successfully initiated some conversion of kwanzas into dollars and has also successfully reduced the due from affiliates and due to affiliates balances via agreed netting transactions between the company and Sonatide. Somewhat mitigating the generally positive trend in the Sonatide-related due from/due to balance was a $3.4 million increase during the quarter ended June 30, 2018 in the net amount due from our Nigeria joint venture, DTDW. For additional disclosure regarding the Sonatide Joint Venture, refer to the Sonatide Joint Venture disclosure in Management’s Discussion and Analysis of this Quarterly Report on Form 10-Q.

40

Americas Segment Operations.Vessel revenues in the Americas segment increased 2%, or $0.7 million, during the quarter ended June 30, 2018 (Successor), as compared to the quarter ended June 30, 2017 (Predecessor), primarily due to increased revenue from deepwater vessels of 31%, or $5.3 million, during the same comparative periods. The increase in revenue from deepwater vessels is, in part, a result of vessels working on new contracts in Canada. Offsetting this increase in revenue was a decrease in revenue related to towing-supply vessels during the comparative periods. The decrease in revenue from towing-supply vessels is generally a result of a decrease in average day rates and fewer vessels working in the region.

Americas segment operating profit for the quarter ended June 30, 2018 (Successor) was $5.7 million and operating loss for the quarter ended June 30, 2017 (Predecessor) was $15.7 million.

Vessel operating costs for the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were $18.3 million and $27.3 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the quarter ended June 30, 2017 (Predecessor) primarily due to the reduction in crew costs, fuel, lube and supplies and other vessel costs reflecting the overall decline in operating activity within the segment. Decreases to repairs and maintenance costs are primarily the result of a new planned major maintenance policy the company implemented subsequent to July 31, 2017, and in connection with the application of fresh start accounting, requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

There were no vessel operating lease costs in the quarter ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the quarter ended June 30, 2017 (Predecessor) were $3.8 million.

Depreciation expensefor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) was $3.5 million and $10.7 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values recognized at July 31, 2017 resulting from the application of fresh-start accounting.

General and administrative expensesfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) was $5.1 million and $5.8 million, respectively. General and administrative expenses have decreased as compared to the prior year primarily as a result of cost reduction initiatives that the company has undertaken as a result of the significant industry downturn which has continued through June 2018.

Middle East/Asia Pacific Segment Operations.  Vessel revenues in the Middle East/Asia Pacific segment decreased 19%, or $5.4 million, during the quarter ended June 30, 2018 (Successor), as compared to the quarter ended June 30, 2017 (Predecessor), primarily as a result of a decrease in revenue from towing-supply vessels due to lower average day rates and fewer vessels working in the region, partially the result of more vessels commencing drydockings during the quarter ended June 30, 2018.

Operating profit for the Middle East/Asia Pacific segment for the quarter ended June 30, 2018 (Successor) was $0.7 million and operating loss for the quarter ended June 30, 2017 (Predecessor) was $1.3 million.

Vessel operating costsfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were $15.4 million and $17.6 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the quarter ended June 30, 2017 (Predecessor) primarily due to a reduction in crew costs and repair and maintenance costs, reflecting the decline in operating activity in the segment in the current year and the Successor company’s accounting policy in regards to planned major maintenance activities. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

Depreciation expensefor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) was $2.8 million and $7.7 million, respectively. Depreciation expense has decreased significantly as compared to prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017 resulting from the application of fresh-start accounting.

General and administrative expensesfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were comparable.

41

Europe/Mediterranean Sea Segment Operations.Vessel revenues in the Europe/Mediterranean Sea segment increased 21%, or $2.3 million, during the quarter ended June 30, 2018 (Successor), as compared to the quarter ended June 30, 2017 (Predecessor), primarily as a result of an increase in revenue from deepwater vessels due to seasonally higher utilization (especially in our North Sea operations) and an increase in the number of deepwater vessels operating in the Mediterranean Sea. This increase was partially offset by a decrease in revenue from towing-supply vessels as a result of fewer towing supply vessels working in the Mediterranean Sea which have generally been replaced by additional deepwater vessels working in the Mediterranean Sea.

Operating loss for the Europe/Mediterranean Sea segment was $1.1 million and $10.2 million for the quarters ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor), respectively.

Vessel operating costsfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were $10.6 million and $12.5 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the quarter ended June 30, 2017 (Predecessor) primarily due to decreased repair and maintenance costs. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

There were no vessel operating lease costs in the quarter ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the quarter ended June 30, 2017 (Predecessor) were $0.7 million.

Depreciation expensefor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) was $2.2 million and $6.8 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017 resulting from the application of fresh-start accounting.

General and administrative expensesfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were comparable.

West Africa Segment Operations.Vessel revenues in the West Africa segment decreased 14%, or $5.8 million, during the quarter ended June 30, 2018 (Successor), as compared to the quarter ended June 30, 2017 (Predecessor), primarily as a result of a decrease in revenue from towing supply vessels of 29%, or $6.9 million, largely due to lower average day rates as a result of the continuing effects of the industry-wide downturn.

Operating profit for the West Africa segment for the quarter ended June 30, 2018 (Successor) was $1.7 million, and operating loss for the quarter ended June 30, 2017 (Predecessor) was $2.8 million.

Vessel operating costsfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were $23.2 million and $26.4 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the quarter ended June 30, 2017 (Predecessor) primarily due to a reduction in crew costs and repair and maintenance costs, reflecting the decline in operating activity in the segment in the current year and the Successor company’s accounting policy in regards to planned major maintenance activities. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

There were no vessel operating lease costs in the quarter ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the quarter ended June 30, 2017 (Predecessor) were $1.0 million.

Depreciation expense forthe quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) was $4.1 million and $9.6 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017, resulting from the application of fresh-start accounting.

General and administrative expensesfor the quarter ended June 30, 2018 (Successor) and quarter ended June 30, 2017 (Predecessor) were $6.3 million and $7.3 million, respectively. General and administrative expenses have decreased as compared to the prior year primarily as a result of continuing cost reduction initiatives, which include headcount reductions and office consolidations.

42

Six Months Ended June 30, 2018 and 2017

Consolidated Results. Revenues earned for the six months ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $197.1 million and $275.9 million, respectively. Revenues have generally decreased as compared to the periods of the prior year primarily as a result of the prolonged industry downturn. Since June 30, 2017, the number of active vessels and the worldwide average vessel day rates have decreased. Additionally, revenues for the six months ended June 30, 2017 included a $39.1 million early termination fee related to the early cancellation of a long-term vessel charter contract.

We have responded to reductions in revenue by reducing vessel operating costs. Such operating costs for the six months ended June 30, 2018 (Successor) and the six months ended June 30, 2017 (Predecessor) were $129.4 million and $164.6 million, respectively. While a portion of these costs related to lower levels of vessel operations, subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized. Such costs were expensed in the period incurred under the accounting policy of the Predecessor.

Depreciation expense for the six months ended June 30, 2018 (Successor) and the six months ended June 30, 2017 (Predecessor) was $24.8 million and $73.9 million, respectively. Depreciation expense for Successor periods is substantially lower than that of Predecessor periods as a result of the application of fresh-start accounting upon emergence from bankruptcy, which significantly reduced the carrying value of properties and equipment. In addition, the company has scrapped or disposed of 42 vessels since June 30, 2017.

General and administrative expenses for the six months ended June 30, 2018 (Successor) and the six months ended June 30, 2017 (Predecessor) were $48.0 million and $74.8 million, respectively, or down $26.8 million, or 36%, in the comparable periods. General and administrative expenses have decreased during the six months ended June 30, 2018 as compared to the comparable period of the prior year primarily as a result of lower restructuring-related professional services expenses and the company’s continuing efforts to reduce overhead costs due to the downturn in the offshore services market. Included in general and administrative expenses for the six months ended June 30, 2017 (Predecessor) were $23.4 million of restructuring-related professional services expenses. The company did not incur any such restructuring-related professional services expenses during the six months ended June 30, 2018 (Successor), but did incur professional services costs related to the proposed combination with GulfMark of $1.5 million.  Note also that general and administrative expenses for the six months ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) included stock-based compensation of $6.1 million and $(0.6) million, respectively.

We recorded $7.4 million and $228.3 million of asset impairments during the six months ended June 30, 2018 (Successor) and the six months ended June 30, 2017 (Predecessor), respectively, primarily due to the continued stacking of underutilized vessels (as a result of the decrease in the volume of oil and gas exploration, field development and production spending by our customers) and a decline in offshore support vessel values. As of the company’s emergence from Chapter 11 bankruptcy on July 31, 2017, the company adopted fresh-start accounting and significantly reduced the carrying values of its vessels and other long-lived assets.

Interest and other debt expenses for the six months ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) were $15.1 million and $31.6 million, respectively. Interest and other debt costs for the six months ended June 30, 2018 reflects our post-restructuring capital structure, which includes debt of $444.8 million at June 30, 2018.

The company’s outstanding receivable from Sonatide for work in Angola was reduced by approximately $77 million to approximately $153 million during the six months ended June 30, 2018 (Successor). The company’s outstanding payable to Sonatide (including commissions payable) decreased by approximately $53 million to approximately $47 million during the same period. Sonatide has had some success in obtaining contracts that allow for a portion of services in Angola to be paid in dollars, has successfully initiated some conversion of kwanzas into dollars and has also successfully reduced the due from affiliates and due to affiliates balances via agreed netting transactions between the company and Sonatide. For additional disclosure regarding the Sonatide Joint Venture, refer to the Sonatide Joint Venture disclosure in Management’s Discussion and Analysis of this Quarterly Report on Form 10-Q.

43

Americas Segment Operations. Vessel revenues in the Americas segment decreased 48%, or $53.7 million, during the six months ended June 30, 2018 (Successor), as compared to the six months ended June 30, 2017 (Predecessor), primarily due to a $39.1 million early termination fee related to the early cancellation of a long-term vessel charter contract included in the six months ended June 30, 2017. Deepwater revenues during the six months ended June 30, 2018 (Successor) were approximately $41.3 million less than the six months ended June 30, 2017, primarily as the result of the recognition of the early termination fee and lower average dayrates for deepwater vessels working in the region, especially in the U.S. Gulf of Mexico. Revenues from towing-supply vessels decreased 45%, or $11.6 million, during the same comparative periods. The decrease in revenue from towing-supply vessels is primarily the result of decreased demand for towing supply vessels especially in Brazil.

At December 31, 2017, we had 27 stacked Americas-based vessels. During the first six months of 2018, we stacked two additional vessels and disposed of eight vessels, resulting in a total of 21 stacked Americas-based vessels, or approximately 45% of the Americas-based fleet, as of June 30, 2018.

Operating profit for the Americas segment was $10.6 million for the six months ended June 30, 2018 (Successor) and $14.9 million for the six months ended June 30, 2017 (Predecessor).

Vessel operating costs for the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $30.6 million and $52.9 million, respectively. Overall vessel operating costs have decreased for the six months ended June 30, 2018 (Successor) as compared to the six months ended June 30, 2017 (Predecessor) primarily due to the reduction in crew costs, other vessel costs, and supplies, fuel and lube reflecting the decline in operating activity in the segment in the current year. Repairs and maintenance expense has decreased, in part, as the result of a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized, which the company adopted subsequent to July 31, 2017, and in connection with the application of fresh start accounting.

There were no vessel operating lease costs in the six months ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the six months ended June 30, 2017 (Predecessor) were $10.4 million.

Depreciation expensefor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) was $6.8 million and $22.0 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values recognized at July 31, 2017, resulting from the application of fresh-start accounting.

General and administrative expensesfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $10.7 million and $12.2 million, respectively. General and administrative expenses have decreased as compared to the prior year primarily as a result of cost reduction initiatives, including headcount reductions.

Middle East/Asia Pacific Segment Operations. Vessel revenues in the Middle East/Asia Pacific segment decreased 25%, or $13.6 million, during the six months ended June 30, 2018 (Successor), as compared to the six months ended June 30, 2017 (Predecessor), primarily as a result of a decrease in revenue from towing-supply vessels due to decreased average day rates, decreased utilization and fewer vessels working in the region.

At December 31, 2017, we had 16 stacked Middle East/Asia Pacific-based vessels. During the first six months of 2018, we returned two previously stacked vessels to service and disposed of two vessels, resulting in a total of 12 stacked Middle East/Asia Pacific-based vessels, or approximately 23% of the Middle East/Asia Pacific-based fleet, as of June 30, 2018.

Operating loss for the Middle East/Asia Pacific segment for the six months ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) was $1.6 million and $7.5 million, respectively.

Vessel operating costsfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $29.9 million and $38.6 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the six months ended June 30, 2017 (Predecessor) primarily due to a reduction in crew costs and repair and maintenance costs, reflecting the decline in operating activity in the segment in the current year and the Successor company’s accounting policy in regards to planned major maintenance activities. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

44

Depreciation expensefor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) was $5.6 million and $16.2 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017, resulting from the application of fresh-start accounting.

General and administrative expensesfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were comparable.

Europe/Mediterranean Sea Segment Operations.Vessel revenues in the Europe/Mediterranean Sea segment increased 8%, or $1.8 million, during the six months ended June 30, 2018 (Successor), as compared to the six months ended June 30, 2017 (Predecessor), primarily as a result of an increase in revenue from deepwater vessels due to increased utilization especially in our Norway and North Sea operations and an increase in the number of deepwater vessels operating in the Mediterranean Sea. This increase was partially offset by a decrease in revenue from towing-supply vessels, as a result of fewer towing supply vessels working in the Mediterranean Sea which have generally been replaced by additional deepwater vessels working in the Mediterranean Sea.

At December 31, 2017, we had six stacked Europe/Mediterranean Sea -based vessels. During the first six months of 2018, we returned three previously stacked vessels to work resulting in a total of three stacked Europe/Mediterranean Sea-based vessels, or approximately 14% of the Europe/Mediterranean Sea-based fleet, as of June 30, 2018.

Operating loss for the Europe/Mediterranean Sea segment for the six months ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) was $4.7 million and $17.3 million, respectively.

Vessel operating costsfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $20.7 million and $21.4 million, respectively. The modest decrease in vessel operating costs in the current period as compared to the six months ended June 30, 2017 (Predecessor) is primarily due to decreased repair and maintenance costs. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

There were no vessel operating lease costs in the six months ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the six months ended June 30, 2017 (Predecessor) were $1.2 million.

Depreciation expensefor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) was $4.0 million and $13.4 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017 resulting from the application of fresh-start accounting.

General and administrative expensesfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were comparable.

West Africa Segment Operations. Vessel revenues in the West Africa segment decreased 15%, or $11.9 million, during the six months ended June 30, 2018 (Successor), as compared to the six months ended June 30, 2017 (Predecessor), primarily as a result of a decrease in revenue from towing supply vessels due to decreased average day rates, as a result of the continuing effects of the industry-wide downturn.

At December 31, 2017, we had 40 stacked West Africa-based vessels. During the first six months of 2018, we stacked four additional vessels, disposed of 13 vessels and returned one previously stacked vessel to work, resulting in a total of 30 stacked West Africa-based vessels, or approximately 36% of the West Africa-based fleet, as of June 30, 2018.

Operating loss for the West Africa segment was less than $0.1 million for the six months ended June 30, 2018 (Successor), and operating loss was $8.1 million for the six months ended June 30, 2017 (Predecessor).

45

Vessel operating costsfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $48.2 million and $51.8 million, respectively. Overall vessel operating costs have decreased in the current period as compared to the six months ended June 30, 2017 (Predecessor) primarily due to a reduction in repair and maintenance costs. Subsequent to July 31, 2017, and in connection with the application of fresh start accounting, the company implemented a new planned major maintenance policy requiring the costs of drydockings and surveys associated with regulatory compliance to be deferred and amortized.

There were no vessel operating lease costs in the six months ended June 30, 2018 (Successor), as a result of the termination of lease contracts in conjunction with the Plan. Vessel operating lease costs in the six months ended June 30, 2017 (Predecessor) were $2.4 million.

Depreciation expense for the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) was $8.1 million and $19.4 million, respectively. Depreciation expense has decreased significantly as compared to the prior year primarily due to the substantial reduction in vessel carrying values at July 31, 2017 resulting from the application of fresh-start accounting.

General and administrative expensesfor the six months ended June 30, 2018 (Successor) and six months ended June 30, 2017 (Predecessor) were $13.0 million and $15.6 million, respectively. General and administrative expenses have decreased as compared to the prior year primarily as a result of cost reduction initiatives that the company has undertaken as a result of the significant industry downturn which has continued through June 2018.

Other Items.

Asset Impairments. Stacked vessels expected to return to active service are generally newer vessels, have similar capabilities and likelihood of future active service as other currently operating vessels, are generally current with classification societies in regards to their regulatory certification status, and are being actively marketed. Stacked vessels expected to return to active service are evaluated for impairment as part of their assigned active asset group and not individually.

The company reviews the vessels in its active fleet for impairment whenever events occur or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. In such evaluation, the estimated future undiscounted cash flows generated by an asset group are compared with the carrying amount of the asset group to determine if a write-down may be required. If an asset group fails the undiscounted cash flow test, the company estimates the fair value of each asset group and compares such estimated fair value, considered Level 3, as defined by ASC 820, Fair Value Measurements and Disclosures, to the carrying value of each asset group in order to determine if impairment exists. Similar to stacked vessels, management obtains estimates of the fair values of the active vessels from third party appraisers or brokers for use in determining fair value estimates.

As of the company’s emergence from Chapter 11 bankruptcy on July 31, 2017, the company significantly reduced the carrying values of its vessels and other assets.

The table below summarizes the number of vessels impaired and the amount of the impairment incurred.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands, except number of vessels impaired)	2018		2017		2018		2017
Number of vessels impaired in the period (A)		2		77		15		89
Amount of impairment incurred	$	1,215		163,423		7,401		228,280

(A) For the quarter and six month periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively, and for the six month period ended June 30, 2017, there were 83 stacked vessels and 6 active vessels impaired, respectively.

Insurance and Loss Reserves.  Insurance and loss reserves in the quarter and six month periods ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor) reflect favorable developments in case-based reserves and experience-based, retrospective premium adjustments and the decline in the number of vessels in the company’s fleet.

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Gains on Asset Dispositions, Net. During the quarter and six months ended June 30, 2018 (Successor), the company recognized net gains of $1.3 million and $3.3 million, respectively, related to the sale of vessels and other assets. Included in gain on asset dispositions, net for the quarter and six months ended June 30, 2017 (Predecessor), were $3.0 million and $8.9 million of amortized gains from sale leaseback transactions, respectively, and $0.2 million and $0.4 million of net gains from the sale of vessels and other assets, respectively.

Foreign Exchange Losses. During the quarter and six months ended June 30, 2018 (Successor), the company recognized net foreign exchange losses of $1.0 million and $1.4 million, respectively, primarily as a result of the revaluation of Brazilian reais- denominated balances to the U.S. dollar reporting currency. The company recognized foreign currency losses of $1.2 million and $0.5 million, respectively, for the quarter and six months ended June 30, 2017 (Predecessor), which were primarily due to the revaluation of Norwegian kroner-denominated debt to the U.S. dollar reporting currency.

During the six months ended June 30, 2018, the currency exchange rate of the Angolan kwanza versus the U.S. dollar devalued from a ratio of approximately 168 to 1 to a ratio of approximately 250 to 1, or approximately 49%. As a result, the company recognized 49% of the total foreign exchange loss, or approximately $20.6 million, through equity in net earnings (losses) of unconsolidated companies.

Vessel Class Revenue and Statistics by Segment

Vessel utilization is determined primarily by market conditions and to a lesser extent by drydocking requirements. Vessel day rates are determined by the demand created largely through the level of offshore exploration, field development and production spending by energy companies relative to the supply of offshore service vessels. Suitability of equipment and the quality of service provided may also influence vessel day rates. Vessel utilization rates are calculated by dividing the number of days a vessel works during a reporting period by the number of days the vessel is available to work in the reporting period. Stacked vessels reduce utilization rates because stacked vessels are considered available to work, and as such, are included in the calculation of utilization rates. Average day rates are calculated by dividing the revenue a vessel earns during a reporting period by the number of days the vessel worked in the reporting period.

Vessel utilization and average day rates are calculated on all vessels in service (which includes stacked vessels and vessels in drydock) but do not include vessels owned by joint ventures (eight vessels at June 30, 2018).

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The following tables compare revenues, day-based utilization percentages and average day rates by vessel class and in total for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor			Predecessor		Successor		Predecessor
	Quarter Ended			Quarter Ended		Six Months Ended		Six Months Ended
	June 30,			June 30,		June 30,		June 30,
	2018			2017		2018		2017
REVENUE BY VESSEL CLASS (In thousands):
Americas fleet:
Deepwater (A)	$	22,661			17,313		38,866		80,144
Towing-supply		7,560			11,274		14,406		26,012
Other		2,380			3,300		5,410		6,264
Total	$	32,601			31,887		58,682		112,420
Middle East/Asia Pacific fleet:
Deepwater	$	9,603			10,701		19,167		20,134
Towing-supply		12,783			17,065		21,607		34,310
Other		20			—		20		—
Total	$	22,406			27,766		40,794		54,444
Europe/Mediterranean Sea fleet:
Deepwater	$	12,596			8,237		21,616		18,090
Towing-supply		761			2,794		1,364		3,116
Other		—			—		—		(9	)
Total	$	13,357			11,031		22,980		21,197
West Africa fleet:
Deepwater	$	14,314			13,921		28,252		27,100
Towing-supply		17,321			24,225		33,460		46,697
Other		4,175			3,427		7,500		7,304
Total	$	35,810			41,573		69,212		81,101
Worldwide fleet:
Deepwater	$	59,174			50,172		107,901		145,468
Towing-supply		38,425			55,358		70,837		110,135
Other		6,575			6,727		12,930		13,559
Total	$	104,174			112,257		191,668		269,162
UTILIZATION:
Americas fleet:
Deepwater		54.8	%		23.4		48.5		26.5
Towing-supply		37.7			36.4		36.7		39.1
Other		48.3			50.0		55.1		47.8
Total		48.3	%		30.3		45.5		32.8
Middle East/Asia Pacific fleet:
Deepwater		64.2	%		54.4		59.1		50.1
Towing-supply		60.2			57.2		49.9		55.7
Other		100.0			—		—		—
Total		61.6	%		55.4		53.0		53.0
Europe/Mediterranean Sea fleet:
Deepwater		79.5	%		59.7		72.3		60.4
Towing-supply		29.0			66.1		27.0		45.9
Other		—			—		—		—
Total		70.3	%		56.5		63.9		52.4
West Africa fleet:
Deepwater		60.2	%		46.1		56.2		47.0
Towing-supply		47.0			49.4		42.8		47.1
Other		49.2			33.1		42.5		32.9
Total		51.9	%		42.7		46.8		41.9
Worldwide fleet:
Deepwater		63.5	%		41.1		57.8		41.8
Towing-supply		49.9			50.9		44.0		48.9
Other		49.1			33.9		44.7		33.3
Total		55.5	%		44.0		49.9		43.3

(A)  Included in Americas fleet deepwater revenue for the six months ended June 30, 2017, is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

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	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater (A)	$	18,162		19,869		17,488		40,730
Towing-supply		14,349		15,959		14,273		16,961
Other		9,029		9,071		9,047		9,045
Total	$	15,995		16,423		15,323		26,806
Middle East/Asia Pacific fleet:
Deepwater	$	9,287		9,825		9,686		9,872
Towing-supply		6,627		7,511		6,612		7,770
Other		6,122		—		6,122		—
Total	$	7,554		8,261		7,770		8,435
Europe/Mediterranean Sea fleet:
Deepwater	$	9,676		8,967		9,441		9,608
Towing-supply		7,195		7,459		6,965		7,349
Other		—		—		—		—
Total	$	9,489		8,530		9,246		9,189
West Africa fleet:
Deepwater	$	9,940		13,768		10,344		13,516
Towing-supply		13,054		14,271		13,145		14,223
Other		3,508		3,265		3,415		3,464
Total	$	9,050		11,061		9,262		10,964
Worldwide fleet:
Deepwater	$	11,779		12,897		11,700		18,426
Towing-supply		9,882		10,961		10,093		11,405
Other		4,513		4,759		4,622		4,840
Total	$	10,047		10,842		10,068		13,225

(A)    Included in Americas fleet deepwater average day rates for the six months ended June 30, 2017, is $39.1 million of revenue related to early cancellation of a long-term vessel charter contract. Americas fleet deepwater average day rates for the six months ended June 30, 2018 were increased by $19,895 as a result of the recognition of revenue related to the early cancellation of the vessel charter contract.

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Vessel Count, Dispositions, Acquisitions and Construction Programs

The following table compares the average number of vessels by class and geographic distribution for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017
Americas fleet:
Deepwater		25			41			26			41
Towing-supply		15			21			15			22
Other		6			8			6			8
Total		46			70			47			71
Less stacked vessels		(19	)		(35	)		(20	)		(35	)
Active vessels		27			35			27			36
Middle East/Asia Pacific fleet:
Deepwater		18			22			19			22
Towing-supply		35			44			36			44
Other		—			1			—			1
Total		53			67			55			67
Less stacked vessels		(12	)		(25	)		(14	)		(25	)
Active vessels		41			42			41			42
Europe/Mediterranean Sea fleet:
Deepwater		18			17			17			17
Towing-supply		4			6			4			5
Other		—			2			—			2
Total		22			25			21			24
Less stacked vessels		(4	)		(6	)		(4	)		(7	)
Active vessels		18			19			17			17
West Africa fleet:
Deepwater		26			24			27			24
Towing-supply		31			38			33			38
Other		27			35			28			36
Total		84			97			88			98
Less stacked vessel		(29	)		(43	)		(34	)		(44	)
Active vessels		55			54			54			54
Worldwide fleet:
Deepwater		87			104			89			104
Towing-supply		85			109			88			109
Other		33			46			34			47
Total		205			259			211			260
Less stacked vessel		(64	)		(109	)		(72	)		(111	)
Active vessels		141			150			139			149
Total active		141			150			139			149
Total stacked		64			109			72			111
Total joint venture and other vessels		8			8			8			8
Total		213			267			219			268

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	Successor		Predecessor			Successor		Predecessor
	Quarter Ended		Quarter Ended			Six Months Ended		Six Months Ended
	June 30,		June 30,			June 30,		June 30,
	2018		2017			2018		2017
Leased Vessels Included in Vessel Counts Above:
Americas fleet:
Deepwater		—		8			—		8
Towing-supply		—		3			—		3
Total		—		11			—		11
Stacked vessels		—		(10	)		—		(10	)
Active vessels		—		1			—		1
Europe/Mediterranean Sea fleet:
Towing-supply		—		2			—		2
Total		—		2			—		2
Stacked vessels		—		—			—		—
Active vessels		—		2			—		2
West Africa fleet:
Towing-supply		—		3			—		3
Total		—		3			—		3
Stacked vessels		—		—			—		—
Active vessels		—		3			—		3
Worldwide fleet:
Deepwater		—		8			—		8
Towing-supply		—		8			—		8
Total		—		16			—		16
Stacked vessels		—		(10	)		—		(10	)
Active vessels		—		6			—		6

Owned or chartered vessels include vessels stacked by the company. The company considers a vessel to be stacked if the vessel crew is furloughed or substantially reduced and limited maintenance is being performed on the vessel. The company reduces operating costs by stacking vessels when management does not foresee opportunities to profitably or strategically operate the vessels in the near future. Vessels are stacked when market conditions warrant and are no longer considered stacked when they are returned to active service, sold or otherwise disposed. When economically practical marketing opportunities arise, the stacked vessels can be returned to active service by performing any necessary maintenance on the vessel and either rehiring or returning fleet personnel to operate the vessel. Although not currently fulfilling charters, stacked vessels are considered to be in service and are included in the calculation of the company’s utilization statistics.

The company had 66 and 115 stacked vessels at June 30, 2018 and 2017, respectively.

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The following is a summary of net properties and equipment at June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Properties and equipment:
Vessels and related equipment	$	836,773		850,268
Other properties and equipment		5,481		5,710
		842,254		855,978
Less accumulated depreciation and amortization		38,529		18,458
Net properties and equipment	$	803,725		837,520

	June 30, 2018				December 31, 2017
	Number		Carrying		Number		Carrying
	Of Vessels		Value		of Vessels		Value
			(In thousands)				(In thousands)
Owned vessels in active service		138	$	640,394		138	$	632,978
Stacked vessels		66		146,857		89		189,710
Marine equipment and other assets under construction				11,903				9,501
Other property and equipment				4,571				5,331
Totals		204	$	803,725		227	$	837,520

Vessel Dispositions

We seek opportunities to sell and/or scrap our older vessels when market conditions warrant and opportunities arise. The majority of our vessels are sold to buyers who do not compete with the company in the offshore energy industry. The following is a summary of the number of vessels disposed of by vessel type and segment:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
Number of vessels disposed by vessel type:
Deepwater vessels		—		—		10		1
Towing-supply vessels		1		—		8		1
Other		2		2		5		2
Total		3		2		23		4
Number of vessels disposed by segment:
Americas		—		—		8		—
Middle East/Asia Pacific		1		—		2		1
Europe/Mediterranean Sea		—		—		—		1
West Africa		2		2		13		2
Total		3		2		23		4

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Vessel Commitments at June 30, 2018

The company has $2.3 million in unfunded capital commitments associated with one 5,400 deadweight ton (DWT) deepwater platform supply vessel (PSV) under construction at June 30, 2018. The total cost of the new-build vessel includes contract costs and other incidental costs.  The company took delivery of this vessel on July 31, 2018.

General and Administrative Expenses

Consolidated general and administrative expenses and the related percentage of total revenue for the quarters and six month periods ended June 30, 2018 and 2017 consist of the following components:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%					%
Personnel	$	14,135		13	%		16,257		14	%		28,936		14	%		29,567		11	%
Office and property		3,123		3	%		3,899		3	%		6,504		3	%		7,929		3	%
Sales and marketing		772		1	%		648		1	%		1,410		1	%		1,333		<1	%
Professional services		4,560		4	%		10,160		9	%		7,540		4	%		30,352		11	%
Other		1,835		2	%		2,095		2	%		3,600		2	%		5,605		2	%
Total	$	24,425		23	%		33,059		29	%		47,990		24	%		74,786		27	%

Segment and corporate general and administrative expenses and the related percentage of total general and administrative expenses for the quarters and six month periods ended June 30, 2018 and 2017 were as follows:

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
(In thousands)			%					%					%					%
Vessel operations	$	16,613		68	%		18,002		55	%	$	33,480		70	%		37,447		50	%
Other operating activities		2		<1	%		355		1	%		16		<1	%		880		1	%
Corporate		7,810		32	%		14,702		44	%		14,494		30	%		36,459		49	%
Total	$	24,425		100	%		33,059		100	%	$	47,990		100	%		74,786		100	%

General and administrative expenses during the quarter and six months ended June 30, 2018 were 26%, or $8.6 million, and 36%, or $26.8 million, lower as compared to the same periods in 2017. Decreases to professional services costs are primarily the result of a decrease in restructuring-related professional service expenses. Such restructuring-related professional service expenses of $6.7 million and $23.4 million were recognized in the quarter and six months ended June 30, 2017. During the quarter and six months ended June 30, 2018, the company did not incur additional restructuring-related professional service expenses, but did incur professional services costs related to the proposed combination with GulfMark during the quarter ended June 30, 2018 of $1.5 million. Overall decreases to personnel, office and property and other general and administrative expenses are a result of our continuing efforts to reduce overhead costs and have included wage and headcount reductions, shore-based office consolidations and reductions in compensation.  

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Liquidity, Capital Resources and Other Matters

Availability of Cash

At June 30, 2018, we had $464.5 million in cash and cash equivalents (including $5.2 million of restricted cash), of which $111.3 million was held by foreign subsidiaries, the majority of which is available to the company without adverse tax consequences. Included in foreign subsidiary cash are balances held in U.S. dollars and foreign currencies that await repatriation due to various currency conversion and repatriation constraints, partner and tax related matters, prior to the cash being made available for remittance to the company’s domestic accounts. We currently intend that earnings by foreign subsidiaries will be indefinitely reinvested in foreign jurisdictions in order to fund strategic initiatives (such as investment, expansion and acquisitions), fund working capital requirements and repay debt (both third-party and intercompany) of our foreign subsidiaries in the normal course of business. Moreover, we do not currently intend to repatriate earnings of our foreign subsidiaries to the United States because cash generated from our domestic businesses and the repayment of intercompany liabilities from foreign subsidiaries are currently deemed to be sufficient to fund the cash needs of our operations in the United States.

Our objective in financing our business is to maintain adequate financial resources and access to sufficient levels of liquidity. We do not have a revolving credit facility. Cash and cash equivalents and future net cash provided by operating activities provide us with sufficient liquidity to meet our liquidity requirements.

Indebtedness

The following is a summary of debt outstanding at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
New secured notes:
8.00% New secured notes due August 2022 (A)		349,954		350,000
Troms Offshore borrowings (B):
NOK denominated notes due May 2024		13,595		14,054
NOK denominated notes due January 2026		25,315		25,965
USD denominated notes due January 2027		22,729		23,345
USD denominated notes due April 2027		24,810		25,463
	$	436,403		438,827
Debt premiums and discounts, net		8,446		9,333
Less: Current portion of long-term debt		6,290		5,103
Total long-term debt	$	438,559		443,057

(A) As of June 30, 2018 and December 31, 2017, the fair value (Level 2) of the New Secured Notes was $361.5 million and $359.8 million, respectively.

(B) The company pays principal and interest on these notes semi-annually. As of June 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $86.4 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of June 30, 2018 was 5.00%.

New Secured Notes Tender Offer

Pursuant to the New Secured Notes indenture dated July 31, 2017, among the company, each of the guarantors party thereto, and Wilmington Trust, National Association, as Trustee and Collateral Agent (the “Indenture”) governing the Notes, the company is required to make cash offers to the registered or beneficial holders (the “Holders” and each, a “Holder”) of the Notes within 60 days of the date that the net proceeds realized by the company from Asset Sales (as defined in the Indenture, but which generally equates to 65% of the proceeds from Asset Sales, net of any commission paid) exceed $10.0 million (the “Asset Sale Threshold”). Since the issuance of the Notes, the company conducted certain Asset Sales and on December 19, 2017, the aggregate net proceeds realized from such Asset Sales exceeded the Asset Sale Threshold, which triggered the obligation under the Indenture for the company to commence the Offer.  

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On February 2, 2018, the company commenced an offer to purchase (the “Offer”) up to $24.7 million aggregate principal amount (the “Offer Amount”) of its outstanding 8.00% senior secured notes due 2022 (the “Notes”) for cash. On March 7, 2018, we purchased $46,023 aggregate principal amount of the Notes that were validly tendered in accordance with the terms and conditions of the Offer.

Because the aggregate principal amount of tendered and accepted Notes was less than the Offer Amount, cash in an amount equal to the difference between the Offer Amount and the principal amount of the Notes accepted for tender is now available for use by the company in any manner not prohibited by the Indenture and is no longer shown as restricted cash on the balance sheet. The $5.2 million restricted cash on the balance sheet at June 30, 2018, represents additional proceeds from Asset Sales since the date of the February 2018 tender offer and is, therefore, restricted by the terms of the Indenture.

Debt Costs

The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. Interest and debt costs incurred, net of interest capitalized, for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Interest and debt costs incurred, net of interest    capitalized	$	7,547		10,605		15,146		31,613
Interest costs capitalized		194		601		368		1,818
Total interest and debt costs	$	7,741		11,206		15,514		33,431

Dividends

There were no dividends declared by the company during the quarter and six months ended June 30, 2018 and 2017.

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Operating Activities

Net cash provided by operating activities for any period will fluctuate according to the level of business activity for the applicable period.

Net cash provided by operating activities for the six month periods ended June 30, 2018 and 2017 is as follows:

	Successor			Predecessor
	Six Months Ended			Six Months Ended
	June 30,			June 30,
(In thousands)	2018			2017
Net loss	$	(50,211	)		(611,382	)
Reorganization items		—			308,011
Depreciation and amortization		22,572			73,879
Amortization of deferred drydocking and survey costs		2,230			—
Amortization of debt premium and discounts		(900	)		—
Provision for deferred income taxes		—			(7,743	)
Gain on asset dispositions, net		(3,257	)		(9,253	)
Asset impairments		7,401			228,280
Changes in investments in, at equity, and advances      to unconsolidated companies		27,881			(9,163	)
Compensation expense - stock-based		6,139			(562	)
Excess tax liability on stock option activity		—			4,927
Cash paid for deferred drydocking and survey costs		(13,394	)		—
Changes in operating assets and liabilities		(1,347	)		46,810
Changes in due to/from related parties, net		19,869			22,983
Net cash provided by operating activities	$	16,983			46,787

Net cash provided by operations for the six months ended June 30, 2018 (Successor) was $17.0 million and reflects a net loss of $50.2 million, which includes non-cash asset impairments of $7.4 million, non-cash depreciation and amortization of $23.9 million, gain on asset dispositions, net, of $3.3 million and stock-based compensation expense of $6.1 million. Changes in investments in, at equity, and advances to unconsolidated companies decreased by $27.9 million, which primarily reflects foreign exchange losses recognized by the company’s 49% owned Sonatide joint venture. Changes in due from/due to related parties, net during the six months ended June 30, 2018 of $19.9 million generally reflect collections from Sonatide, net of an approximate $5 million dollar increase in the due from/due to our Nigeria joint venture, DTDW. Change in operating assets and liabilities used $1.3 million of cash in the six months ended June 30, 2018.

Net cash provided by operations for the six months ended June 30, 2017 (Predecessor) was $46.8 million and reflects a net loss of $611.4 million, which includes non-cash reorganization items of $308.0 million, non-cash asset impairments of $228.3 million, non-cash depreciation and amortization of $73.9 million and gain on asset dispositions, net of $9.3 million. Changes in operating assets and liabilities provided $46.8 million of cash, largely as the result of a decrease in accounts receivables, in part, due to the receipt of a lump sum payment for the early termination of a vessel charter contract. The changes in due to/due from related parties, net, provided $23.0 million of net cash primarily as the result of cash repatriations during the six months.

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Investing Activities

Net cash provided by investing activities for the six month periods ended June 30, 2018 and 2017, is as follows:

	Successor			Predecessor
	Six Months Ended			Six Months Ended
	June 30,			June 30,
(In thousands)	2018			2017
Proceeds from the sale of assets	$	12,968			3,072
Additions to properties and equipment		(5,775	)		(9,982	)
Payments related to novated vessel construction contract		—			5,272
Net cash provided by (used in) investing activities	$	7,193			(1,638	)

Net cash provided by investing activities for the six months ended June 30, 2018 (Successor) was $7.2 million, reflecting the receipt of proceeds from the sale of assets of $13.0 million related to the disposal of 23 vessels, 16 of which were scrapped. Additions to properties and equipment were comprised of approximately $3.9 million in capitalized upgrades to existing vessels and equipment and $1.9 million for the construction of offshore support vessels. 

Investing activities for the six months ended June 30, 2017 (Predecessor) used $1.6 million of cash. Additions to properties and equipment were comprised of approximately $8.2 million for the construction of offshore support vessels, $1.7 million in capitalized upgrades to existing vessels and equipment and $0.1 million in other property and equipment purchases.  Partially offsetting these uses of cash were the receipt of $5.3 million from an unaffiliated entity in connection with that entity’s assumption of the company’s obligations related to a vessel under construction at an international shipyard and proceeds received from the sale of assets of $3.1 million.

Financing Activities

Net cash used in financing activities for the six month periods ended June 30, 2018 and 2017, is as follows:

	Successor			Predecessor
	Six Months Ended			Six Months Ended
	June 30,			June 30,
(In thousands)	2018			2017
Principal payment on long-term debt	$	(2,637	)		(5,048	)
Payments to General Unsecured Creditors		(8,377	)		—
Other		(1,998	)		(6,127	)
Net cash used in financing activities	$	(13,012	)		(11,175	)

Financing activities for the six months ended June 30, 2018 (Successor) used $13.0 million of cash, as a result of payments made to creditors pursuant to the Plan of $8.4 million, $2.6 million of scheduled semiannual principal payments on Troms offshore debt, a $2 million payment to acquire the remaining noncontrolling interest in a consolidated joint venture and the repurchase of $46,023 of New Secured Notes resulting from a recent tender offer. For more information on this tender offer, please refer to the “New Secured Notes Tender Offer” discussion within the “Indebtedness” section of Management’s Discussion and Analysis.    

Financing activities for the six months ended June 30, 2017 (Predecessor) used $11.2 million of cash, primarily due to $5.0 million of scheduled semiannual principal payments on Troms Offshore debt, the effect of deferred taxes related to stock options that expired during the six months and $1.2 million of commissions paid to a non-controlling owner of a consolidated joint venture entity.

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Other Liquidity Matters

Vessel Construction. We have successfully replaced the vast majority of the older vessels in our fleet with fewer, larger and more efficient vessels that have a more extensive range of capabilities. Those efforts are now complete with the delivery of the final vessel under construction in July 2018. We used available cash in order to fund the remaining $2.6 million due on this remaining vessel. Refer to the “Vessel Commitments at June 30, 2018” section of Management’s Discussion and Analysis for more information on the status of vessels currently under construction.

Brazilian Customs.

In April 2011, two Brazilian subsidiaries of the company were notified by the Customs Office in Macae, Brazil that they were jointly and severally being assessed fines of 33.0 million Brazilian reais (approximately $8.5 million as of June 30, 2018). Other fines imposed at that same time by the Customs Office have been formally resolved in favor of the company. The assessment of these fines is for the alleged failure of these subsidiaries to obtain import licenses with respect to company vessels that provided Brazilian offshore vessel services to Petrobras, the Brazilian national oil company, over a three-year period ended December 2009. After consultation with its Brazilian tax advisors, the company and its Brazilian subsidiaries believe that vessels that provide services under contract to the Brazilian offshore oil and gas industry are deemed, under applicable law and regulations, to be temporarily imported into Brazil, and thus exempt from the import license requirement.

The company is vigorously contesting these fines (which it has neither paid nor accrued). Based on the advice of its Brazilian counsel, the company believes that it has a high probability of success with respect to overturning the entire amount of the fines, either at the administrative appeal level or, if necessary, in Brazilian courts. In May 2016, a final administrative appeal allowed fines totaling 3.0 million Brazilian reais (approximately $0.8 million as of June 30, 2018). The company appealed this 3.0 million Brazilian reais administrative award to the appropriate Brazilian court and deposited 6.0 million Brazilian reais (approximately $1.5 million as of June 30, 2018) with the court. The 6.0 million Brazilian reais deposit represents the amount of the award and the substantial interest that would be due if the company did not prevail in this court action. The court action is in its initial stages. The remaining fines totaling 30.0 million Brazilian reais(approximately $7.7 million as of June 30, 2018) are still subject to additional administrative appeals board hearings, but the company believes that previous administrative appeals boarddecisions will be helpful in those upcoming hearings for the vast majority of amounts still claimed by the Macae Customs Office. The company believes that the ultimate resolution of this matter will not have a material effect on the company’s financial position, results of operations or cash flows.

Repairs to U.S. Flagged Vessels Operating Abroad.

During fiscal 2015, the company became aware that it may have had compliance deficiencies in documenting and declaring upon re-entry to the U.S. certain foreign purchases for or repairs to U.S. flagged vessels while they were working outside of the U.S.  When a U.S. flagged vessel operates abroad, certain foreign purchases for or repairs made to the U.S. flagged vessel while it is outside of the U.S. are subject to declaration with U.S. Customs and Border Protection (CBP) upon re-entry to the U.S. and are subject to 50% vessel repair duty. During our examination of our filings made in or prior to fiscal 2015 with CBP, we determined that it was necessary to file amended forms with CBP to supplement previous filings.  We have amended several vessel repair entries with CBP and have paid additional vessel repair duties and interest associated with these amended forms. In connection with three of our amended filings, CBP assessed penalties, which the company paid after CBP granted mitigation and reduced the amount of each civil penalty.  The amount paid in civil penalties was not material.  It is possible that CBP may seek to impose further civil penalties or fines in connection with some or all of the other amended filings that could be material.

Legal Proceedings.

Arbitral Award for the Taking of the Company’s Venezuelan Operations.Committees formed under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) have awarded two subsidiaries of the company compensation for the expropriation of the investments of the two subsidiaries by the Bolivarian Republic of Venezuela.  The nature of the investments expropriated and the progress of the ICSID proceeding were previously reported by the company in prior filings.  The final aggregate award is $56.9 million as of June 30, 2018, and accrues interest at approximately $0.6 million per quarter. The committees’ decisions are not subject to any further ICSID review, appeal or other substantive proceeding or any stay of enforcement.

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The company is committed to taking appropriate steps to enforce and collect the award, which is enforceable in any of the 150 member states that are party to the ICSID Convention.  As an initial step, the company had the award recognized and entered as a judgment by the United States District Court for the Southern District of New York.  A recent federal court of appeals decision resulted in that judgment being vacated for reasons related to service of process. The company has initiated a separate court action in Washington, D.C. using a different service of process method and expects to be successful in having the award recognized in the Washington, D.C. court. In addition, the award has been recognized and entered in November 2016 as a final judgment of the High Court of Justice of England and Wales. Even with the likely eventual recognition of the award in the United States and the current recognition by the court in the United Kingdom, the company recognizes that collection of the award presents significant practical challenges. The company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies.

Various legal proceedings and claims are outstanding which arose in the ordinary course of business. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions, will not have a material adverse effect on the company's financial position, results of operations, or cash flows.

Contractual Obligations and Other Commercial Commitments

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the company is not required to provide this information.

Off-Balance Sheet Arrangements

Sale/Leasebacks

In connection with the restructuring contemplated by the Plan, the Debtors filed a motion seeking to reject all Sale Leaseback Agreements (the rejection damage claims related thereto, the “Sale Leaseback Claims”). Pursuant to an order by the Bankruptcy Court in May 2017, the Sale Leaseback Agreements for all 16 leased vessels were rejected. The company successfully reached agreement with the Sale Leaseback Parties between August and November 2017. Pursuant to such settlements, approximately $233.6 million of additional Sale Leaseback Claims were allowed and emergence consideration was paid to the Sale Leaseback Parties as each claim was settled. The remaining emergence consideration withheld was distributed pro-rata to holders of allowed General Unsecured Claims, including the remaining Sale Leaseback Parties, in December 2017 and January 2018.

Application of Critical Accounting Policies and Estimates

Our Transition Report on Form 10-K for the nine month period ended December 31, 2017, filed with the Securities and Exchange Commission on March 15, 2018, describes the accounting policies that are critical to reporting our financial position and operating results and that require management’s most difficult, subjective or complex judgments. This Quarterly Report on Form 10-Q should be read in conjunction with the discussion contained in the company’s Transition Report on Form 10-K for the nine month period ended December 31, 2017, regarding these critical accounting policies.

New Accounting Pronouncements

For information regarding the effect of new accounting pronouncements, refer to Note (2) of Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Effects of Inflation

Day-to-day operating costs are generally affected by inflation. Because the energy services industry requires specialized goods and services, general economic inflationary trends may not affect the company’s operating costs. The major impact on operating costs is the level of offshore exploration, field development and production spending by energy exploration and production companies. As spending increases, prices of goods and services used by the energy industry and the energy services industry will increase. Increases in vessel day rates may shield the company from the inflationary effects on operating costs.

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Environmental Compliance

During the ordinary course of business, the company’s operations are subject to a wide variety of environmental laws and regulations that govern the discharge of oil and pollutants into navigable waters. Violations of these laws may result in civil and criminal penalties, fines, injunction and other sanctions. Compliance with the existing governmental regulations that have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment has not had, nor is expected to have, a material effect on the company. Environmental laws and regulations are subject to change however, and may impose increasingly strict requirements and, as such, the company cannot estimate the ultimate cost of complying with such potential changes to environmental laws and regulations.

The company is also involved in various legal proceedings that relate to asbestos and other environmental matters. The amount of ultimate liability, if any, with respect to these proceedings is not expected to have a material adverse effect on the company’s financial position, results of operations, or cash flows. The company is proactive in establishing policies and operating procedures for safeguarding the environment against any hazardous materials aboard its vessels and at shore-based locations. Whenever possible, hazardous materials are maintained or transferred in confined areas in an attempt to ensure containment if an accident was to occur.

In addition, we have established operating policies that are intended to increase awareness of actions that may harm the environment.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the company is not required to provide this information.

ITEM 4. CONTROLS AND PROCEDURES

CEO and CFO Certificates

Included as exhibits to this Quarterly Report on Form 10-Q are “Certifications” of the Chief Executive Officer and the Chief Financial Officer. The first form of certification is required in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. This section of the Quarterly Report contains the information concerning the controls evaluation referred to in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed with the objective of ensuring that all information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 ("Exchange Act'), such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer and principal financial officer, or person performing similar functions, as appropriate to allow timely decisions regarding required disclosure. However, any control system, no matter how well conceived and followed, can provide only reasonable, and not absolute, assurance that the objectives of the control system are met.

The company evaluated, under the supervision and with the participation of the company’s management, including the company’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, as amended), as of the end of the period covered by this Quarterly Report on Form 10-Q.  Based on that evaluation, the company’s Chief Executive Officer along with the company’s Chief Financial Officer concluded that the company’s disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There was no change in the company’s internal control over financial reporting that occurred during the quarter ended June 30, 2018, that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Arbitral Award for the Taking of the Company’s Venezuelan Operations

Committees formed under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) have awarded two subsidiaries of the company compensation for the expropriation of the investments of the two subsidiaries by the Bolivarian Republic of Venezuela. The nature of the investments expropriated and the progress of the ICSID proceeding were previously reported by the company in prior filings. The final aggregate award is $56.9 million as of June 30, 2018 and accrues interest at approximately $0.6 million per quarter. The committees’ decisions are not subject to any further ICSID review, appeal or other substantive proceeding or any stay of enforcement.

The company is committed to taking appropriate steps to enforce and collect the award, which is enforceable in any of the 150 member states that are party to the ICSID Convention.  As an initial step, the company had the award recognized and entered as a judgment by the United States District Court for the Southern District of New York.  A recent federal court of appeals decision resulted in that judgment being vacated for reasons related to service of process. The company has initiated a separate court action in Washington, D.C. using a different service of process method and expects to be successful in having the award recognized in the Washington, D.C. court. In addition, the award has been recognized and entered in November 2016 as a final judgment of the High Court of Justice of England and Wales. Even with the likely eventual recognition of the award in the United States and the current recognition by the court in the United Kingdom, the company recognizes that collection of the award presents significant practical challenges. The company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies.

Various legal proceedings and claims are outstanding which arose in the ordinary course of business. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions, will not have a material adverse effect on the company's financial position, results of operations, or cash flows. Information related to various commitments and contingencies, including legal proceedings, is disclosed in Note (8) of Notes to the Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.

ITEM 1A. RISK FACTORS

Our business faces many risks. Any of the risks discussed in this Quarterly Report or our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. For a detailed discussion of the risk factors that should be understood by any investor contemplating investment in our securities, please refer to Part I—Item 1A—Risk Factors in our Annual Report on Form 10-K for the period ended December 31, 2017. There have been no material changes to the risk factors set forth in our 2017 Annual Report, other than as set forth below.

Risk Factors Relating to the GulfMark Merger (the “proposed merger”)

The proposed merger is subject to conditions, including certain conditions that may not be satisfied on a timely basis, if at all. Failure to complete the proposed merger, or significant delays in completing the proposed merger, could negatively affect the trading prices of our common stock and our future business and financial results of operations.

The completion of the proposed merger is subject to a number of conditions. The completion of the proposed merger is not assured and is subject to risks, including the risk that the approval of the proposed merger by the GulfMark stockholders and the risk that the approval of the company’s common stock issuance by the company’s common stockholders are not obtained or that other closing conditions are not satisfied and the risk of a competing unsolicited proposal constituting, or reasonably expected to result in, a “superior offer” as defined in the merger agreement. If the proposed merger is not completed, or if there are significant delays in completing the proposed merger, the trading prices of our common stock and our future business and financial results could be negatively affected, and would be subject to several risks, including the following:

•the company may be liable for damages under the terms and conditions of the merger agreement;

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•negative reactions from the financial markets, including a decline in the price of our common stock due to the fact

that current prices may reflect a market assumption that the proposed merger will be completed;

•having to pay certain significant costs relating to the proposed merger, including, in certain circumstances, the termination fee of $35.0 million and the obligation to reimburse costs of legal fees associated with stockholder litigation if the merger agreement is terminated under certain circumstances, as described in the merger agreement;

•the attention of management of the company will have been diverted to the proposed merger rather than our own operations and the pursuit of other opportunities that could have been beneficial to us,

•the manner in which customers, vendors, business partners and other third parties perceive us may be negatively impacted, which in turn could affect our marketing, operations or our ability to compete for new business or obtain renewals in the marketplace more broadly; and

•the company may experience negative reactions from employees.

There may be substantial disruption to the company’s business and distraction of its management and employees as a result of the proposed merger.

There may be substantial disruption to the company’s business and distraction of its management and employees from day-to-day operations because matters related to the proposed merger may require substantial commitments of time and resources, which could otherwise have been devoted to other opportunities that could have been beneficial to the company.

The company may have difficulty attracting, motivating and retaining executives and other employees in light of the proposed merger.

Uncertainty about the effect of the proposed merger on employees may have an adverse effect on the company’s business.  These uncertainties may impair the company’s ability to attract, retain and motivate key personnel until the proposed merger is completed and for a period of time thereafter, which could affect the company’s relationship with customers, vendors and others. Also, the success of the combined company after the proposed merger will depend in part upon the ability of the company to attract, motivate and retain its key employees, including key GulfMark employees. Key employees may depart either before or after the proposed merger because of issues relating to the uncertainty and difficulty of integration or a desire not to remain following the proposed merger. Accordingly, no assurance can be given that the combined company will be able to attract, retain and motivate key employees to the same extent as in the past.

The company is subject to business uncertainties and contractual restrictions while the proposed merger is pending, which could adversely affect each party’s business and operations.

In connection with the proposed merger, it is possible that some customers, suppliers and other persons with whom the company has business relationships may delay or defer certain business decisions or might decide to seek to terminate, change or renegotiate their relationship with the company as a result of the proposed merger, which could negatively affect the company’s revenues, earnings and cash flow, as well as the market price of the company’s common stock, regardless of whether the proposed merger is closed.

The merger agreement restricts the company and GulfMark from entering into certain corporate transactions and taking other specified actions without the consent of the other party, and generally requires the parties to continue its operations in the ordinary course until completion of the proposed merger, which may adversely affect the company’s ability to execute certain of its business strategies. Such limitations could negatively affect each party’s business and operations prior to the completion of the proposed merger. Furthermore, the process of planning to integrate two businesses and organizations for the post-merger period can divert management attention and resources and could ultimately have an adverse effect on each company.

The company will incur substantial transaction-related costs in connection with the proposed mergers.

The company has incurred and will incur substantial expenses in connection with the negotiation and completion of the proposed merger. The company expects to continue to incur substantial non-recurring expenses in connection with completing the proposed merger and integrating the business, operations, networks, systems, technologies, policies and procedures of the company and GulfMark and achieving the desired synergies. These expenses include, but are not limited to, severance costs, fees paid to legal, financial and accounting advisors, filing fees and printing costs. There are a large number of systems that must be integrated, including billing, management information, purchasing, accounting and finance,

63

sales, payroll and benefits, lease administration and regulatory compliance, and there are a number of factors beyond our control that could affect the total amount or the timing of transaction (including severance and integration) expenses. Many of the expenses that will be incurred, by their nature, are difficult to estimate accurately at the present time. Due to these factors, the proposed merger (including severance and integration) expenses associated with the proposed merger could, particularly in the near term, exceed the savings that the combined organization expects to achieve from the elimination of duplicative expenses and the realization of economies of scale and cost savings related to the integration of businesses following the completion of the proposed merger. These costs and other unanticipated costs could have a material adverse effect on the financial condition and operating results of the company.

The market value of our common stock could decline if large amounts of our common stock are sold following the proposed merger.

Following the proposed merger, our stockholders and the former stockholders of GulfMark will own interests in a combined company operating an expanded business with more assets and a different mix of liabilities. Our current stockholders and the current stockholders of GulfMark may not wish to continue to invest in the combined company, or may wish to reduce their investment in the combined company, in order to comply with institutional investing guidelines, or to increase diversification. If, following the proposed merger, large amounts of our common stock are sold, the price of our common stock could decline.

The proposed merger may not realize the anticipated synergies and other benefits because of difficulties related to the integration of the company and GulfMark, the achievement of synergies and other challenges.

The company and GulfMark currently operate as independent public companies and, until completion of the proposed merger, will continue to operate, independently, and there can be no assurance that our businesses can be combined in a manner that allows for the achievement of substantial benefits. The proposed merger involves numerous operational, strategic, financial, accounting, legal, tax and other risks, potential liabilities associated with GulfMark and uncertainties related to design, operation and integration of GulfMark’s internal control over financial reporting. If we are not able to successfully integrate GulfMark’s businesses with ours, the anticipated benefits and cost savings of the proposed merger may not be fully realized or may take longer than expected to be realized.

Specifically, potential difficulties the combined company may encounter in the integration process include the following:

• combining the companies’ corporate functions, operations, procedures and systems;

• integrating the companies’ administrative and information technology infrastructures;

• determining whether and how to address possible differences in corporate cultures and management philosophies;

• combining the businesses of the company and GulfMark in a manner that permits us to achieve the synergies anticipated to result from the proposed merger in the time frame currently anticipated, if at all, or incurring unexpected costs to realize such synergies;

• integrating personnel from the two companies while maintaining focus on providing consistent, high-quality products and services;

• complexities associated with managing the larger, more complex, combined company;

• loss of key employees;

• the disruption of, or the loss of momentum in, each company’s ongoing business or inconsistencies in standards, controls, procedures or policies;

• maintaining existing agreements with customers, suppliers, talent and vendors and avoiding delays in entering into new agreements with prospective customers, suppliers, talent and vendors;

• potential unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the proposed merger; and

64

• performance shortfalls as a result ofthe diversion of management’s attention caused by completing the proposed merger and integrating GulfMark’s businesses.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The information required by this Item 6 is set forth in the Index to Exhibits accompanying this quarterly report on Form 10-Q.

65

EXHIBIT INDEX

Exhibit Number	Description
2.1	Joint Prepackaged Chapter 11 Plan of Reorganization of Tidewater Inc. and its Affiliated Debtors dated May 11, 2017 (filed with the Commission as Exhibit A to Exhibit T3E.1 to the Company’s application for the qualification of indentures on Form T-3 filed on May 12, 2017, File No. 22-29043).
2.2	Disclosure Statement for Joint Prepackaged Chapter 11 Plan of Reorganization of Tidewater Inc. and its Affiliated Debtors dated May 11, 2017 (filed with the Commission as Exhibit T3E.1 to the Company’s application for the qualification of indentures on Form T-3 filed on May 12, 2017, File No. 22-29043).
2.3	Second Amended Joint Prepackaged Chapter 11 Plan of Tidewater Inc. and Its Affiliated Debtors dated July 13, 2017 (filed with the Commission as Exhibit 2.1 to the company’s current report on Form 8-K filed on July 18, 2017, File No. 1-6311).
2.4	Agreement and Plan of Merger by and between Tidewater Inc. and GulfMark Offshore, Inc.dated as of July 15, 2018 (filed with the Commission as Exhibit 2.1 to the company’s current report on Form 8-K filed on July 16, 2018, File No. 1-6311).
3.1	Amended and Restated Certificate of Incorporation of Tidewater Inc. dated July 31, 2017 (filed with the Commission as Exhibit 3.1 to the company’s current report on Form 8-K filed on July 31, 2017, File No. 1-6311).
3.2	Amended and Restated By-Laws of Tidewater Inc. dated July 31, 2017 (filed with the Commission as Exhibit 3.2 to the company’s current report on Form 8-K filed on July 31, 2017, File No. 1-6311).
4.1	Indenture for 8.00% Senior Secured Notes due 2022 among Tidewater Inc., each of the Guarantors party thereto, and Wilmington Trust, National Association, as Trustee and Collateral Agent dated as of July 31, 2017 (filed with the Commission as Exhibit 4.1 to the company’s current report on Form 8-K filed on July 31, 2017, File No. 1-6311).
10.1	Restructuring Support Agreement, dated May 11, 2017 (filed with the Commission as Schedule 1 to Exhibit A to Exhibit T3E.1 to the Company’s application for the qualification of indentures on Form T-3 filed on May 12, 2017, File No. 22-29043).
10.2	Amendment and Restatement Agreement No. 4 to the Troms Facility Agreement, dated May 11, 2017 (filed with the Commission as Exhibit C to Schedule 1 to Exhibit A to Exhibit T3E.1 to the Company’s application for the qualification of indentures on Form T-3 filed on May 12, 2017, File No. 22-29043).
10.3	Creditor Warrant Agreement between Tidewater Inc., as Issuer and Computershare Inc. and Computershare Trust Company, N.A., collectively as Warrant Agent dated July 31, 2017 (filed with the Commission as Exhibit 10.1 to the company’s current report on Form 8-K filed on July 31, 2017, File No. 1-6311).
10.4	Existing Equity Warrant Agreement between Tidewater Inc., as Issuer and Computershare Inc. and Computershare Trust Company, N.A., collectively as Warrant Agent dated July 31, 2017 (filed with the Commission as Exhibit 10.2 to the company’s current report on Form 8-K filed on July 31, 2017, File No. 1-6311).
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase.

66

Exhibit Number	Description
101.LAB*	XBRL Taxonomy Extension Label Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase.

* Filed with this quarterly report on Form 10-Q.

** Furnished with the quarterly report on Form 10-Q.

⁺ Indicates a management contract or compensatory plan or arrangement

67

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized

	TIDEWATER INC.
	(Registrant)
Date:  August 13, 2018	/s/ John T. Rynd
	John T. Rynd
	President and Chief Executive Officer
	(Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated.

Date:  August 13, 2018	/s/ Quinn P. Fanning
	Quinn P. Fanning
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)
Date:  August 13, 2018	/s/ Craig J. Demarest
	Craig J. Demarest
	Vice President, Principal Accounting Officer and Controller
	(Principal Accounting Officer)

68

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a-14 OR 15d-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John T. Rynd, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tidewater Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 13, 2018	/s/ John T. Rynd
		John T. Rynd
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a-14 OR 15d-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Quinn P. Fanning, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tidewater Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 13, 2018	/s/ Quinn P. Fanning
		Quinn P. Fanning
		Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Tidewater Inc. (the “company”) for the quarter ending
June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), We, John T. Rynd President and Chief Executive Officer, and Quinn P. Fanning, Executive Vice President and Chief Financial Officer, each hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company

Date:	August 13, 2018	/s/ John T. Rynd
		John T. Rynd
		President and Chief Executive Officer
Date:	August 13, 2018	/s/ Quinn P. Fanning
		Quinn P. Fanning
		Executive Vice President and Chief Financial Officer

A signed original of this written statement has been provided to the company and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

The certification the registrant furnishes in this exhibit is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Registration Statements or other documents filed with the Securities and Exchange Commission shall not incorporate this exhibit by reference, except as otherwise expressly stated

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	TDW
Entity Registrant Name	TIDEWATER INC
Entity Central Index Key	0000098222
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		26,085,155

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 459,286	$ 432,035
Restricted cash	5,213	21,300
Trade and other receivables, net	96,630	114,184
Due from affiliates	197,059	230,315
Marine operating supplies	28,930	28,220
Other current assets	10,213	19,130
Total current assets	797,331	845,184
Investments in, at equity, and advances to unconsolidated companies	1,335	29,216
Net properties and equipment	803,725	837,520
Deferred drydocking and survey costs	14,372	3,208
Other assets	26,779	31,052
Total assets	1,643,542	1,746,180
Current liabilities:
Accounts payable	30,561	38,497
Accrued expenses	49,312	54,806
Due to affiliates	62,353	99,448
Accrued property and liability losses	2,790	2,585
Current portion of long-term debt	6,290	5,103
Other current liabilities	17,815	19,693
Total current liabilities	169,121	220,132
Long-term debt	438,559	443,057
Accrued property and liability losses	2,651	2,471
Other liabilities	57,685	58,576
Commitments and Contingencies (Note 10)
Equity:
Successor Common stock of $0.001 par value, 125,000,000 shares authorized, 26,085,274 and 22,115,916 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	26	22
Additional paid-in capital	1,064,039	1,059,120
Retained deficit	(89,378)	(39,266)
Accumulated other comprehensive loss	(403)	(147)
Total stockholders’ equity	974,284	1,019,729
Noncontrolling interests	1,242	2,215
Total equity	975,526	1,021,944
Total liabilities and equity	$ 1,643,542	$ 1,746,180

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	26,085,274	22,115,916
Common stock, shares outstanding	26,085,274	22,115,916

XML

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues		$ 105,601		$ 197,094
Costs and expenses:
Vessel operating costs		68,012		129,376
Costs of other operating revenues		642		3,116
General and administrative		24,425		47,990
Depreciation and amortization		12,785		24,802
Gain on asset dispositions, net		(1,338)		(3,257)
Asset impairments	[1]	1,215		7,401
Total costs and expenses		105,741		209,428
Operating loss		(140)		(12,334)
Other income (expenses):
Foreign exchange loss		(1,002)		(1,350)
Equity in net earnings (losses) of unconsolidated companies		390		(15,049)
Interest income and other, net		2,914		2,786
Interest and other debt costs, net		(7,547)		(15,146)
Total other income (expenses)		(5,245)		(28,759)
Loss before income taxes		(5,385)		(41,093)
Income tax expense		5,797		9,118
Net loss		(11,182)		(50,211)
Less: Net income (loss) attributable to noncontrolling interests		(242)		(99)
Net loss attributable to Tidewater Inc.		$ (10,940)		$ (50,112)
Basic loss per common share	[2]	$ (0.44)		$ (2.09)
Diluted loss per common share	[3]	$ (0.44)		$ (2.09)
Weighted average common shares outstanding	[4]	24,654,220		23,989,254
Adjusted weighted average common shares		24,654,220		23,989,254
Vessel Revenues
Revenues:
Total revenues		$ 104,174		$ 191,668
Other Operating Revenues
Revenues:
Total revenues	[5]	$ 1,427		$ 5,426
Predecessor
Revenues:
Total revenues			$ 115,106		$ 275,855
Costs and expenses:
Vessel operating costs			83,773		164,618
Costs of other operating revenues			1,585		4,274
General and administrative			33,059		74,786
Vessel operating leases			5,542		13,985
Depreciation and amortization			36,287		73,879
Gain on asset dispositions, net			(3,189)		(9,253)
Asset impairments	[1]		163,423		228,280
Total costs and expenses			320,480		550,569
Operating loss			(205,374)		(274,714)
Other income (expenses):
Foreign exchange loss			(1,157)		(493)
Equity in net earnings (losses) of unconsolidated companies			4,517		7,358
Interest income and other, net			1,680		3,268
Reorganization items			(313,176)		(313,176)
Interest and other debt costs, net			(10,605)		(31,613)
Total other income (expenses)			(318,741)		(334,656)
Loss before income taxes			(524,115)		(609,370)
Income tax expense			295		2,012
Net loss			(524,410)		(611,382)
Less: Net income (loss) attributable to noncontrolling interests			24		7,907
Net loss attributable to Tidewater Inc.			$ (524,434)		$ (619,289)
Basic loss per common share	[2]		$ (11.13)		$ (13.15)
Diluted loss per common share	[3]		$ (11.13)		$ (13.15)
Weighted average common shares outstanding	[4]		47,121,304		47,101,155
Adjusted weighted average common shares			47,121,304		47,101,155
Predecessor | Vessel Revenues
Revenues:
Total revenues			$ 112,257		$ 269,162
Predecessor | Other Operating Revenues
Revenues:
Total revenues	[5]		$ 2,849		$ 6,693

[1] Refer to Note (14) for additional information regarding asset impairment.

[2] The company calculates “Loss per share, basic” by dividing “Net loss available to common shareholders” by “Weighted average outstanding shares of common stock, basic”.

[3] The company calculates “Loss per share, diluted” by dividing “Net loss available to common shareholders” by “Weighted average common stock and equivalents”.

[4] Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018, were 26,085,274, 3,924,441 and 30,009,715, respectively.

[5] Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net loss	$ (11,182)		$ (50,211)
Other comprehensive income:
Unrealized gains (losses) on available for sale securities, net of tax of $0, $0, $0 and $61	43		(256)
Total comprehensive loss	$ (11,139)		$ (50,467)
Predecessor
Net loss		$ (524,410)		$ (611,382)
Other comprehensive income:
Unrealized gains (losses) on available for sale securities, net of tax of $0, $0, $0 and $61		86		(8)
Change in loss on derivative contract, net of tax of $0, $0, $0 and $823				1,317
Change in supplemental executive retirement plan liability, net of tax of $0, $0, $0 and ($927)				(1,721)
Change in pension plan minimum liability, net of tax of $0, $0, $0 and $215				399
Change in other benefit plan minimum liability, net of tax of $0, $0, $0 and ($2,046)				(3,799)
Total comprehensive loss		$ (524,324)		$ (615,194)

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Unrealized gains (losses) on available-for-sale securities, tax	$ 0		$ 0
Change in loss on derivative contract, tax	0		0
Change in supplemental executive retirement plan liability, tax	0		0
Change in Pension Plan minimum liability, tax	0		0
Change in Other Benefit Plan minimum liability, tax	$ 0		$ 0
Predecessor
Unrealized gains (losses) on available-for-sale securities, tax		$ 0		$ 61
Change in loss on derivative contract, tax		0		823
Change in supplemental executive retirement plan liability, tax		0		(927)
Change in Pension Plan minimum liability, tax		0		215
Change in Other Benefit Plan minimum liability, tax		$ 0		$ (2,046)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net loss		$ (50,211)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		22,572
Amortization of deferred drydocking and survey costs		2,230
Amortization of debt premium and discounts		(900)
Gain on asset dispositions, net		(3,257)
Asset impairments	[1]	7,401
Changes in investments in, at equity, and advances to unconsolidated companies		27,881
Compensation expense - stock-based		6,139
Changes in assets and liabilities, net:
Trade and other receivables		(15,097)
Changes in due to/from related parties, net		19,869
Marine operating supplies		(711)
Other current assets		8,752
Accounts payable		1,709
Accrued expenses		(6,652)
Accrued property and liability losses		205
Other current liabilities		5,590
Other liabilities		11
Cash paid for deferred drydocking and survey costs		(13,394)
Other, net		4,846
Net cash provided by operating activities		16,983
Cash flows from investing activities:
Proceeds from sales of assets		12,968
Additions to properties and equipment		(5,775)
Net cash provided by (used in) investing activities		7,193
Cash flows from financing activities:
Principal payment on long-term debt		(2,637)
Payments to General Unsecured Creditors		(8,377)
Other		(1,998)
Net cash used in financing activities		(13,012)
Net change in cash, cash equivalents and restricted cash		11,164
Cash, cash equivalents and restricted cash at beginning of period		453,335
Cash, cash equivalents and restricted cash at end of period		464,499
Cash paid during the period for:
Interest, net of amounts capitalized		16,134
Income taxes		$ 10,083
Predecessor
Operating activities:
Net loss			$ (611,382)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Reorganization items			308,011
Depreciation and amortization			73,879
Provision for deferred income taxes			(7,743)
Gain on asset dispositions, net			(9,253)
Asset impairments	[1]		228,280
Changes in investments in, at equity, and advances to unconsolidated companies			(9,163)
Compensation expense - stock-based			(562)
Excess tax liability on stock option activity			4,927
Changes in assets and liabilities, net:
Trade and other receivables			57,701
Changes in due to/from related parties, net			22,983
Marine operating supplies			(922)
Other current assets			(22,668)
Accounts payable			(15,384)
Accrued expenses			17,870
Accrued property and liability losses			(816)
Other current liabilities			(1,216)
Other liabilities			3,135
Other, net			9,110
Net cash provided by operating activities			46,787
Cash flows from investing activities:
Proceeds from sales of assets			3,072
Additions to properties and equipment			(9,982)
Proceeds related to novated vessel construction contract			5,272
Net cash provided by (used in) investing activities			(1,638)
Cash flows from financing activities:
Principal payment on long-term debt			(5,048)
Other			(6,127)
Net cash used in financing activities			(11,175)
Net change in cash, cash equivalents and restricted cash			33,974
Cash, cash equivalents and restricted cash at beginning of period			649,804
Cash, cash equivalents and restricted cash at end of period			683,778
Cash paid during the period for:
Interest, net of amounts capitalized			8,651
Income taxes			5,778
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment			$ 282

[1] Refer to Note (14) for additional information regarding asset impairment.

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Non controlling interest
Balance (Predecessor) at Dec. 31, 2016	$ 1,747,564	$ 4,707	$ 171,018	$ 1,570,027	$ (6,446)	$ 8,258
Total comprehensive loss | Predecessor	(615,194)			(619,289)	(3,812)	7,907
Stock option expense/activity | Predecessor	562		562
Cancellation of restricted stock awards | Predecessor	157			157
Amortization/cancellation of restricted stock units | Predecessor	(6,059)	5	(6,064)
Cash paid to noncontrolling interests | Predecessor	(1,200)					(1,200)
Balance (Predecessor) at Jun. 30, 2017	1,125,830	4,712	165,516	950,895	(10,258)	14,965
Balance (Predecessor) at Mar. 31, 2017					(10,344)
Total comprehensive loss | Predecessor	(524,324)
Balance (Predecessor) at Jun. 30, 2017	1,125,830	4,712	165,516	950,895	(10,258)	14,965
Balance at Dec. 31, 2017	1,021,944	22	1,059,120	(39,266)	(147)	2,215
Total comprehensive loss	(50,467)			(50,112)	(256)	(99)
Issuance of common stock	2	4	(2)
Amortization of restricted stock units	6,047		6,047
Acquisition of noncontrolling interests	(2,000)		(1,126)			(874)
Balance at Jun. 30, 2018	975,526	26	1,064,039	(89,378)	(403)	1,242
Balance at Mar. 31, 2018					(446)
Total comprehensive loss	(11,139)
Balance at Jun. 30, 2018	$ 975,526	$ 26	$ 1,064,039	$ (89,378)	$ (403)	$ 1,242

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INTERIM FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

INTERIM FINANCIAL STATEMENTS

(1) INTERIM FINANCIAL STATEMENTS

The unaudited condensed consolidated financial statements for the interim periods presented herein have been prepared in conformity with United States generally accepted accounting principles and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the unaudited condensed consolidated financial statements at the dates and for the periods indicated as required by Rule 10-01 of Regulation S‑X of the Securities and Exchange Commission (SEC). Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Tidewater Inc. (the company) Transition Report on Form 10-K for the nine month period ended December 31, 2017, filed with the SEC on March 15, 2018.

The unaudited condensed consolidated financial statements include the accounts of the company and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation. The company uses the equity method to account for equity investments over which the company exercises significant influence but does not exercise control and is not the primary beneficiary. Unless otherwise specified, all per share information included in this document is on a diluted earnings per share basis.

Reorganization and Fresh Start Accounting

References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the company through July 31, 2017.

On July 31, 2017, the company and certain of its subsidiaries that had been named as additional debtors in the Chapter 11 proceedings emerged from bankruptcy after successfully completing its reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of the company and its Affiliated Debtors (the “Plan”). Upon the company's emergence from Chapter 11 bankruptcy, the company qualified for and adopted fresh-start accounting in accordance with the provisions set forth in ASC 852, which requires the company to present its assets, liabilities, and equity as if it were a new entity upon emergence from bankruptcy. The implementation of the Plan and the application of fresh-start accounting materially changed the carrying amounts and classifications reported in the company’s consolidated financial statements and resulted in the company becoming a new entity for financial reporting purposes. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan, the financial statements after July 31, 2017 are not comparable with the financial statements prior to July 31, 2017. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor companies.

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ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2018

Accounting Changes And Error Corrections [Abstract]

ACCOUNTING PRONOUNCEMENTS

(2) ACCOUNTING PRONOUNCEMENTS

From time to time new accounting pronouncements are issued by the FASB that are adopted by the company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the company’s consolidated financial statements upon adoption.

In March 2017, the FASB issued ASU 2017-7, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Costs. This new guidance amends the requirements related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. This new guidance was effective for the company in January 2018. The adoption of this guidance required a retrospective approach and did not have a material effect on the company’s consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This new guidance was effective for the company in January 2018. The adoption of this guidance required a modified retrospective approach and did not have a material effect on the company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230 to add or clarify guidance on the classification of certain specific types of cash receipts in the statement of cash flows with the intent of reducing diversity in practice. This new guidance was effective for the company in January 2018. The adoption of this guidance required a retrospective approach and did not have a material effect on the company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance requires lessees to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. In July 2018, the FASB finalized the targeted improvements to ASU 2016-02, which provided for an optional transition method whereby entities may prospectively adopt the ASU with cumulative catch-up upon adoption and provided lessors with a practical expedient that would allow lessors to account for the combined lease and non-lease components under ASU 2014-09 when the non-lease component is the predominant element of the combined component. The new guidance will be effective for the company in January 2019. Upon adoption of the new lease accounting standard the company will record right of use assets and corresponding lease liabilities that are not expected to be material to the consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes prior revenue recognition guidance and provides a five step recognition framework that requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of goods and services. This new revenue standard was effective for the company in January 2018 and was adopted using the modified retrospective approach. The company adopted this standard on January 1, 2018, and did not adjust the beginning accumulated deficit. The necessary changes to the company’s business processes, systems and controls to support recognition and disclosure of this ASU upon adoption on January 1, 2018, have been implemented. Prior to the adoption of this ASU, the company recognized mobilization fees as revenue in the period earned. Customer reimbursed vessel modifications were not reflected in the statement of earnings.  Refer to Note (3) for further details.

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REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

REVENUE RECOGNITION

(3) REVENUE RECOGNITION

The company’s primary source of revenue is derived from time charter contracts for which the company provides a vessel and crew on a rate per day of service basis.Services provided under respective charter contracts represent a single performance obligation satisfied over time and are comprised of a series of time increments; therefore, vessel revenues are recognized on a daily basis throughout the contract period. These vessel time charter contracts are generally either on a “term” basis (ranging from three months to three years) or on a “spot” basis.Spot contract terms generally range from one day to three months. There are no material differences in the cost structure of the company’s contracts based on whether the contracts are spot or term since the operating costs are generally the same without regard to the length of a contract. Customers are typically billed on a monthly basis for dayrate services and payment terms are generally 30 to 45 days.

Occasionally, customers pay additional lump-sum fees to the company in order to either mobilize a vessel to a new location prior to the start of a charter contract or demobilize the vessel at the end of a charter contract. Mobilizations are not considered to be a separate performance obligation, thus, the company has determined that mobilization fees are a component of the vessel’s charter contract.  As such, the company defers lump-sum mobilization fees as a liability and recognizes such fees as revenue consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of the vessel’s respective charter. Lump-sum demobilization revenue expected to be received upon contract termination is deferred as an asset and recognized ratably as revenue but only in circumstances where the receipt of the demobilization fee at the end of the contract is estimable and there is a high degree of certainty that collection will occur. Costs associated with mobilizations and demobilizations are recognized in vessel operating expense.

Customers also occasionally reimburse the company for modifications to vessels in order to meet contractual requirements. These vessel modifications are not considered to be a separate performance obligation of the vessel’s charter; thus, the company records a liability for lump-sum payments made by customers for vessel modification and recognizes it as revenue consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of the vessel’s respective charter.

Total revenue is determined for each individual contract by estimating both fixed (mobilization, demobilization and vessels modifications) and variable (dayrate services) consideration expected to be earned over the contract term. The company has applied the optional exemption under the revenue standard and has not disclosed the estimated transaction price related to the variable portion of the unsatisfied performance obligation at the end of the reporting period.  

Prior to the adoption of ASU 2014-09, the company recognized mobilization fees as revenue in the period earned and customer reimbursed vessel modifications were not reflected in earnings.

Costs associated with customer-directed mobilizations and reimbursed modifications to vessels are considered costs of fulfilling a charter contract and are expected to be recovered. Mobilization costs such as crew, travel, fuel, port fees, temporary importation fees and other costs are deferred as an asset and amortized as other vessel operating expenses consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. Costs incurred for modifications to vessels in order to meet contractual requirements are capitalized as a fixed asset and depreciated either over the term of the respective charter contract or over the remaining estimated useful life of the vessel in instances where the modification is a permanent upgrade to the vessel and enhances its usefulness.

The following table discloses the amount of revenue by segment and in total for the worldwide fleet, for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Vessel revenues:
Americas	$	32,601		31,887		58,682		112,420
Middle East/Asia Pacific		22,406		27,766		40,794		54,444
Europe/Mediterranean Sea		13,357		11,031		22,980		21,197
West Africa		35,810		41,573		69,212		81,101
		104,174		112,257		191,668		269,162

Contract Balances

Trade accounts receivables are recognized when revenue is earned and collectible. Contract assets include pre-contract costs, primarily related to vessel mobilizations, which have been deferred and will be amortized as other vessel expenses consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. Contract liabilities include payments received for mobilizations or reimbursable vessel modifications to be recognized consistent with the pattern of revenue recognition (primarily on a straight-line basis) over the term of such vessel’s charter. At June 30, 2018, the company had $0.1 million of deferred mobilization costs included within other current assets and $1.2 million of contract liabilities/deferred revenue included within other current liabilities.

The table below summarizes the revenue expected to be recognized in future quarters related to unsatisfied performance obligations as of June 30, 2018:

		Successor
		For the quarter period ended
(In thousands)		September 30, 2018		December 31, 2018		Total
Contract liabilities/deferred revenue	$		692		552		1,244

The impact of adopting the new revenue recognition guidance on the unaudited condensed consolidated balance sheets, statement of earnings (loss) and statement of cash flows as of and for the six months ended June 30, 2018 was immaterial.

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STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

STOCKHOLDERS' EQUITY

(4) STOCKHOLDERS' EQUITY

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive income (loss) by component, net of tax for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	For the quarter ended June 30, 2018 (Successor)												For the six months ended June 30, 2018 (Successor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/18			in OCI		net income		OCI		6/30/18			12/31/17			in OCI			net income		OCI			6/30/18
Available for sale securities		(43	)		—		43		43		—			256			(660	)		404		(256	)		—
Pension/Post- retirement benefits		(403	)		—		—		—		(403	)		(403	)		—			—		—			(403	)
Total		(446	)		—		43		43		(403	)		(147	)		(660	)		404		(256	)		(403	)

	For the quarter ended June 30, 2017 (Predecessor)												For the six months ended June 30, 2017 (Predecessor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/17			in OCI		net income		OCI		6/30/17			12/31/16			in OCI			net income		OCI			6/30/17
Available for sale securities		(95	)		6		80		86		(9	)		(1	)		(209	)		201		(8	)		(9	)
Currency translation adjustment		(9,811	)		—		—		—		(9,811	)		(9,811	)		—			—		—			(9,811	)
Pension/Post- retirement benefits		(438	)		—		—		—		(438	)		4,683			(5,121	)		—		(5,121	)		(438	)
Interest rate swap		—			—		—		—		—			(1,317	)		—			1,317		1,317			—
Total		(10,344	)		6		80		86		(10,258	)		(6,446	)		(5,330	)		1,518		(3,812	)		(10,258	)

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statement of income for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,		Affected line item in thecondensed
(In thousands)	2018		2017		2018		2017		consolidated statements of income
Realized gains on available for sale securities	$	43		80		404		405	Interest income and other, net
Interest rate swap		—		—		—		2,140	Interest and other debt costs
Total pre-tax amounts		43		80		404		2,545
Tax effect		—		—		—		1,027
Total gains for the period, net of tax	$	43		80		404		1,518

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INCOME TAXES

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

(5) INCOME TAXES

For all periods prior to March 31, 2015, we calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Beginning in the quarter ended June 30, 2015, we use a discrete effective tax rate method to calculate taxes for interim periods. We determined that due to the level of volatility and unpredictability of earnings in our industry, both overall and by jurisdiction, use of the discrete method would continue to be proper for the period ended June 30, 2018.

Income tax expense for the quarter ended June 30, 2018, reflects tax liabilities in various jurisdictions that are either based on revenue (deemed profit regimes) or pre-tax profits.

The company’s balance sheet at June 30, 2018, reflects the following in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes:

	June 30,
(In thousands)	2018
Tax liabilities for uncertain tax positions	$	19,626
Income tax payable	$	8,995
Income tax receivable	$	7,814

The tax liabilities for uncertain tax positions are primarily attributable to permanent establishment issues related to a foreign joint venture. Penalties and interest related to income tax liabilities are included in income tax expense. Income tax payable is included in other current liabilities.

Unrecognized tax benefits, which would lower the effective tax rate if realized at June 30, 2018, are as follows:

	June 30,
(In thousands)	2018
Unrecognized tax benefit related to state tax issues	$	12,425
Interest receivable on unrecognized tax benefit related to state tax issues	$	58

As of December 31, 2017, the company’s balance sheet reflected approximately $43.2 million of net deferred tax assets with a valuation allowance of $43.2 million. For the quarter ended June 30, 2018, the company has net deferred tax assets of approximately $47.7 million prior to a valuation allowance analysis.  

Management assesses all available positive and negative evidence to estimate the company’s ability to generate sufficient future taxable income of the appropriate character, and in the appropriate taxing jurisdictions, to permit use of existing deferred tax assets. A significant piece of objective negative evidence is a cumulative loss incurred over a three-year period in a taxing jurisdiction. Prevailing accounting practice is that such objective evidence would limit the ability to consider other subjective evidence, such as projections for future growth.

On the basis of this evaluation, a valuation allowance of $47.7 million has been recorded against net deferred tax assets which are more likely than not to be unrealized.  The amount of deferred tax assets considered realizable could be adjusted if future estimates of U.S. taxable income change, or if objective negative evidence in the form of cumulative losses is no longer present and subjective evidence, such as financial projections for future growth and tax planning strategies, are given additional weight.

With limited exceptions, the company is no longer subject to tax audits by U.S. federal, state, local or foreign taxing authorities for years prior to 2014. The company has ongoing examinations by various foreign tax authorities and does not believe that the results of these examinations will have a material adverse effect on the company’s financial position, results of operations, or cash flows.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was enacted. As of June 30, 2018, the company has not completed its accounting for the tax effects of enactment of the Tax Act. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, or SAB 118, to address the accounting and reporting of the Tax Act. SAB 118 allows companies to take a reasonable period, which should not extend beyond one year from enactment of the Tax Act, to measure and recognize the effects of the new tax law. For various reasons discussed further below, we have not yet completed the accounting for the income tax effects of certain elements of the Tax Act. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as discussed below:

Reduction of US federal corporate tax rate: The Tax Act reduces the corporate tax rate to 21 percent effective January 1, 2018. Therefore, the company made a reasonable estimate of the effects on existing deferred tax balances as of December 31, 2017. While we were able to make a reasonable estimate of the impact of the reduction in corporate rate, it may be affected by other analyses related to the Tax Act, including, but not limited to, our calculation of the one-time transition tax. During the six month period ended June 30, 2018, we recognized no adjustments to the provisional amounts recorded at December 31, 2017.

One Time Transition Tax: The deemed repatriation transition tax is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To determine the amount of the transition tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries.  We were able to make a reasonable estimate of the one-time transition tax and recognized a provisional deemed dividend inclusion at December 31, 2017. During the six month period ended June 30, 2018, we recognized no adjustments to the provisional amounts recorded at December 31, 2017.

Global Intangible Low-taxed Income (“GILTI”): The company continues to evaluate the impacts of the newly enacted GILTI provisions which subject the company’s foreign earnings to a minimum level of tax. Because of the complexities of the new legislation, the company has not elected an accounting policy for GILTI at this time. Recent FASB guidance indicates that accounting for GILTI either as part of deferred taxes or as a period cost are both acceptable methods. Once further information is gathered and interpretation and analysis of the tax legislation evolves, the company will make an appropriate accounting method election. For the six month period ended June 30, 2018, we were able to make a reasonable estimate of GILTI and do not expect that it will have a material impact on our 2018 financial statements.

Base Erosion Anti-abuse Tax (“BEAT”): The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations beginning in 2018. For the six month period ended June 30, 2018, we are in the process of analyzing the impact of BEAT and have provisionally concluded that we are below the required thresholds defined in the Tax Act. Therefore, we do not expect BEAT to have a material impact on our 2018 financial statements.

Foreign-Derived Intangible Income (“FDII”): The FDII provisions in the Tax Act provide tax incentives to US companies to earn income from the sale, lease or license of goods and services abroad in the form of a deduction for foreign-derived intangible income. For the six month period ended June 30, 2018, we are in the process of analyzing the impact of FDII and have provisionally concluded FDII will be inapplicable in 2018 due to our net operating loss position.  Therefore, we do not expect FDII to have a material impact on our 2018 financial statements.

Executive Compensation: The Tax Act expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility under Section 162(m) and repealed the exclusion for performance-based compensation. For the six month period ended June 30, 2018, we were able to make a reasonable estimate of the impact of the executive compensation changes and do not expect those changes to have a material impact on our 2018 financial statements.

Interest Expense Limitation: The Tax Act limits the deduction for net interest expense that exceeds 30% of the adjusted taxable income for the year under IRC Section 163(j). For the six month period ended June 30, 2018, we were able to make a reasonable estimate of the interest expense limitation and have included the resulting limitation of approximately $7.5 million before consideration of the valuation allowance in the financial statements. We recorded this adjustment as of June 30, 2018; however, because of the offsetting adjustment to our valuation allowance we estimate no impact to 2018 net income as a result of this provision.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

(6) EMPLOYEE BENEFIT PLANS

U.S. Defined Benefit Pension Plan

The company has a defined benefit pension plan (pension plan) that covers certain U.S. citizen employees and other employees who are permanent residents of the United States. Effective April 1, 1996, the pension plan was closed to new participation. In December 2009, the Board of Directors amended the pension plan to discontinue the accrual of benefits on December 31, 2010. This change did not affect benefits earned by participants prior to January 1, 2011. The company did not contribute to the pension plan during the quarters and six months ended June 30, 2018 and 2017, and currently is evaluating whether to contribute to the pension plan during the remaining quarters of calendar year 2018.

Supplemental Executive Retirement Plan

The company maintains a non-contributory, defined benefit supplemental executive retirement plan (supplemental plan) that provides pension benefits to certain employees in excess of those allowed under the company’s tax-qualified pension plan. A Rabbi Trust has been established for the benefit of participants in the supplemental plan. Effective March 4, 2010, the supplemental plan was closed to new participation. The supplemental plan is a non-qualified plan and, as such, the company is not required to make contributions to the supplemental plan. During the quarter and six month periods ended June 30, 2018, the companycontributed $0.04 million and $0.3 million, respectively, and did not contribute during the quarter and six month periods ended June 30, 2017, to the supplemental plan.The company expects to contribute $0.7 million to the supplemental plan during the remaining quarters of 2018.

The Rabbi Trust assets, which were invested in a variety of marketable securities (but not the company’s stock), were recorded at fair value with unrealized gains or losses included in accumulated other comprehensive income (loss) until the investments were sold in the March 2018 quarter. Investments consisting of money market funds held in a Rabbi Trust at June 30, 2018 and December 31, 2017, are included in other assets at fair value. The following table summarizes the carrying value of the trust assets, including unrealized gains or losses at June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Investments held in Rabbi Trust at fair value	$	45		8,908
Unrealized gains in fair value of trust assets		—		256
Obligations under the supplemental plan		23,797		32,508

The company’s obligations under the supplemental plan are included in ‘accrued expenses’ and ‘other liabilities’ on the consolidated balance sheet.

Jeffrey M. Platt retired from his position as the company’s President and Chief Executive Officer and resigned as a member of the company’s board of directors (the “Board”), effective October 15, 2017. As a result of Mr. Platt’s retirement, he received in May 2018 an $8.9 million lump sum distribution in settlement of his supplemental executive retirement plan obligation. A settlement loss of approximately $0.3 million was recorded during the quarter ended June 30, 2018. During the six months period ended June 30, 2018 the company elected to sell its investments held in the rabbi trust in order to preserve the value of such investments and to fund the payment due to the former CEO.

Postretirement Benefit Plan

Qualified retired employees currently are covered by a plan which provides limited health care and life insurance benefits. Costs of the plan are based on actuarially determined amounts and are accrued over the period from the date of hire to the full eligibility date of employees who are expected to qualify for these benefits. This plan is funded through payments by the company as benefits are required. The company eliminated the life insurance portion of its post retirement benefit effective January 1, 2018.

Net Periodic Benefit Costs

The net periodic benefit cost for the company’s defined benefit pension plans and supplemental plan (referred to collectively as “Pension Benefits”) and the postretirement health care and life insurance plan (referred to collectively as “Other Benefits”) is comprised of the following components:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Pension Benefits:
Service cost	$	41			294			71			713
Interest cost		882			984			1,784			1,975
Expected return on plan assets		(482	)		(518	)		(964	)		(1,119	)
Administrative expenses		2			2			3			24
Payroll tax of net pension costs		—			—			—			56
Amortization of net actuarial losses		—			—			—			32
Recognized actuarial loss		—			561			—			1,008
Settlement loss recognized		335			—			335			—
Net periodic pension cost	$	778			1,323			1,229			2,689
Other Benefits:
Service cost	$	15			17			30			38
Interest cost		29			48			58			99
Amortization of prior service cost		(75	)		(695	)		(150	)		(1,783	)
Recognized actuarial benefit		11			(252	)		22			(535	)
Net periodic postretirement benefit	$	(20	)		(882	)		(40	)		(2,181	)

The company also has a defined benefit pension plan that covers certain Norwegian citizen employees and other employees who are permanent residents of Norway. Benefits are based on years of service and employee compensation. The company contributed 1.9 million NOK (approximately $0.2 million) during the quarter and six months ended June 30, 2018, and 3.0 million NOK (approximately $0.4 million) during the quarter and six months ended June 30, 2017, to the Norwegian defined benefit pension plan. The company currently does not expect to contribute to the Norwegian pension plan during the remaining quarters of calendar year 2018. The preceding net periodic benefit cost table includes the Norwegian pension plan.

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INDEBTEDNESS

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

INDEBTEDNESS

(7)INDEBTEDNESS

The following is a summary of all debt outstanding at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
New secured notes:
8.00% New secured notes due August 2022 (A)		349,954		350,000
Troms Offshore borrowings (B):
NOK denominated notes due May 2024		13,595		14,054
NOK denominated notes due January 2026		25,315		25,965
USD denominated notes due January 2027		22,729		23,345
USD denominated notes due April 2027		24,810		25,463
	$	436,403		438,827
Debt premiums and discounts, net		8,446		9,333
Less: Current portion of long-term debt		6,290		5,103
Total long-term debt	$	438,559		443,057

(A)   As of June 30, 2018 and December 31, 2017, the fair value (Level 2) of the New Secured Notes was $361.5 million and $359.8 million, respectively.  

(B) The company pays principal and interest on these notes semi-annually.  As of June 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $86.4 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of June 30, 2018, was 5.00%.

New Secured Notes Tender Offer

Pursuant to the New Secured Notes indenture dated July 31, 2017, among the company, each of the guarantors party thereto, and Wilmington Trust, National Association, as Trustee and Collateral Agent (the “Indenture”) governing the Notes, the company is required to make cash offers to the registered or beneficial holders (the “Holders” and each, a “Holder”) of the Notes within 60 days of the date that the net proceeds realized by the company from Asset Sales (as defined in the Indenture, but which generally equates to 65% of the proceeds from Asset Sales, net of any commission paid) exceed $10.0 million (the “Asset Sale Threshold”). Since the issuance of the Notes, the company executed certain Asset Sales and on December 19, 2017, the aggregate net proceeds realized from such Asset Sales exceeded the Asset Sale Threshold, which triggered the obligation under the Indenture for the company to commence the Offer.  

On February 2, 2018, the company commenced an offer to purchase (the “Offer”) up to $24.7 million aggregate principal amount (the “Offer Amount”) of its outstanding 8.00% senior secured notes due 2022 (the “Notes”) for cash. On March 7, 2018, we purchased $46,023 aggregate principal amount of the Notes that were validly tendered in accordance with the terms and conditions of the Offer. 

Because the aggregate principal amount of tendered and accepted Notes was less than the Offer Amount, cash in an amount equal to the difference between the Offer Amount and the principal amount of the Notes accepted for tender   became available for use by the company in any manner not prohibited by the Indenture and is no longer shown as restricted cash on the balance sheet. The $5.2 million restricted cash on the balance sheet at June 30, 2018, represents additional proceeds from Asset Sales since the date of the February 2018 tender offer and is, therefore, restricted by the terms of the Indenture.

Debt Costs

The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. The following is a summary of interest and debt costs incurred, net of interest capitalized, for the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Interest and debt costs incurred, net of interest capitalized	$	7,547		10,605	$	15,146		31,613
Interest costs capitalized		194		601		368		1,818
Total interest and debt costs	$	7,741		11,206	$	15,514		33,431

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LOSS PER SHARE

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

LOSS PER SHARE

(8) LOSS PER SHARE

The components of basic and diluted loss per share for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands, except share and per share data)	2018			2017			2018			2017
Net loss available to common shareholders	$	(10,940	)		(524,434	)		(50,112	)		(619,289	)
Weighted average outstanding shares of common stock, basic (A)		24,654,220			47,121,304			23,989,254			47,101,155
Dilutive effect of options, warrants and restricted stock awards and units		—			—			—			—
Weighted average shares of common stock and equivalents		24,654,220			47,121,304			23,989,254			47,101,155
Loss per share, basic (B)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Loss per share, diluted (C)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Additional information:
Incremental "in-the-money" options, warrants and restricted stock awards and units at the end of the period (D)		4,521,727			183			5,454,218			183

(A) Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018, were 26,085,274, 3,924,441 and 30,009,715, respectively.

(B) The company calculates “Loss per share, basic” by dividing “Net loss available to common shareholders” by “Weighted average outstanding shares of common stock, basic”.

(C) The company calculates “Loss per share, diluted” by dividing “Net loss available to common shareholders” by “Weighted average common stock and equivalents”.

(D) For the six months ended June 30, 2018, the company also had 5,062,089 shares of “out-of- the-money” warrants outstanding at the end of the period.

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RELATED PARTY BALANCES

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

RELATED PARTY BALANCES

(9) RELATED PARTY BALANCES

The company maintained the following balances with related parties as of June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Due from related parties:
Sonatide (Angola)	$	152,826		230,315
DTDW (Nigeria)		44,233		33,353
Due to related parties:
Sonatide (Angola)	$	46,742		99,448
DTDW (Nigeria)		15,611		9,645
Due from related parties, net of due to related parties	$	134,706		154,575

Included in due from related parties balances are customer receivables expected to be remitted to the company through joint ventures, receivables related to operating expenses paid by the company on behalf of joint ventures and cash received by joint ventures from customers and due to the company.  Included in the due to related parties balances are commissions payable by the company to the related parties  and payables related to local expenses paid by the related parties on behalf of the company. For more information regarding amounts due to and from Sonatide please refer to Note (10). Amounts due from and due to DTDW (Nigeria) of $33.4 million and $9.6 million, respectively, are included in trade and other receivables, net, and accounts payable line items at December 31, 2017.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

(10) COMMITMENTS AND CONTINGENCIES

Vessel and Other Commitments

The company has $2.3 million in unfunded capital commitments associated with one 5,400 deadweight ton (DWT) deepwater platform supply vessel (PSV) under construction at June 30, 2018. The total cost of the new-build vessel includes contract costs and other incidental costs. The company took delivery of this vessel on July 31, 2018.      

Sonatide Joint Venture

The company has previously disclosed the significant financial and operational challenges that it confronts with respect to its operations in Angola, as well as steps that the company has taken to address or mitigate those risks. Most of the company’s attention has been focused in three areas: (i) reducing the net receivable balance due to the company from Sonatide, its Angolan joint venture with Sonangol, for vessel services; (ii) reducing the foreign currency risk created by virtue of provisions of Angolan law that require that payment for a significant  portion of the services provided by Sonatide be paid in Angolan kwanza; and (iii) optimizing opportunities, consistent with Angolan law, for services provided by the company to be paid for directly in U.S. dollars. These challenges, and the company’s efforts to respond, continue.

Amounts due from Sonatide (Due from affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $153 million and $230 million, respectively, represent cash received by Sonatide from customers and due to the company, amounts due from customers that are expected to be remitted to the company through Sonatide and costs incurred by the company on behalf of Sonatide. Approximately $25 million of the balance at June 30, 2018 represents invoiced but unpaid vessel revenue related to services performed by the company through the Sonatide joint venture. Remaining amounts due to the company from Sonatide are, in part, supported by approximately $67 million of cash held by Sonatide, of which the equivalent of $43 million is denominated in Angolan kwanzas, pending conversion into U.S. dollars and subsequent expatriation. In addition, the company owes Sonatide the aggregate sum of approximately $47 million, including $30 million in commissions payable by the company to Sonatide. The company monitors the aggregate amounts due from Sonatide relative to the amounts due to Sonatide.

For the six months ended June 30, 2018, the company collected (primarily through Sonatide) approximately $51 million from its Angolan operations. Of the $51 million collected, approximately $47 million were U.S. dollars received by Sonatide on behalf of the company or U.S. dollars received directly by the company from customers. The balance of $4 million collected reflects Sonatide’s conversion of Angolan kwanza into U.S. dollars and the subsequent expatriation of the dollars and payment to the company. The company also reduced the respective due from affiliates and due to affiliates balances by approximately $55 million during the six months ended June 30, 2018 through netting transactions based on an agreement with the joint venture.

Amounts due to Sonatide (Due to affiliates in the consolidated balance sheets) at June 30, 2018 and December 31, 2017 of approximately $47 million and $99 million, respectively, represents amounts due to Sonatide for commissions payable and other costs paid by Sonatide on behalf of the company.

The company believes that the process for converting Angolan kwanzas continues to function, but the relative scarcity of U.S. dollars in Angola continues to hinder the conversion process. Sonatide continues to press the commercial banks with which it has relationships to increase the amount of U.S. dollars that are made available to Sonatide.

For the six month period ended June, 2018, the company’s Angolan operations generated vessel revenues of approximately $29 million, or 15%, of its consolidated vessel revenue, from an average of approximately 38 company-owned vessels that are marketed through the Sonatide joint venture (17 of which were stacked on average during the six months ended June 30, 2018).  For the six months ended June 30, 2017, the company’s Angolan operations generated vessel revenues of approximately $53 million, or 20%, of consolidated vessel revenue, from an average of approximately 53 company-owned vessels (23 of which were stacked on average during the six months ended June 30, 2017).

In addition to vessels that Sonatide charters from the company, Sonatide owns seven vessels (five of which are currently stacked) and certain other assets, in addition to earning commission from company-owned vessels marketed through the Sonatide joint venture (owned 49% by the company). As of June 30, 2018 and December 31, 2017, the carrying value of the company’s investment in the Sonatide joint venture, which is included in “Investments in, at equity, and advances to unconsolidated companies,” was $0 and approximately $27 million, respectively. During the six months ended June 30, 2018, the exchange rate of the Angolan kwanza versus the U.S. dollar was devalued from a ratio of approximately 168 to 1 to a ratio of approximately 250 to 1, or approximately 49%. As a result, the company recognized 49% of the total foreign exchange loss, or approximately $20.6 million through equity in net earnings (losses) of unconsolidated companies.

Also during the quarter ended June 30, 2018, the company received a dividend from Sonatide of $12.3 million which reduced the carrying value of the company’s investment in Sonatide to zero.  Approximately $4.9 million of dividends received in excess of the investment balance was recognized in earnings during the quarter ended June 30, 2018.

Management continues to explore ways to profitably participate in the Angolan market while evaluating opportunities to reduce the overall level of exposure to the increased risks that the company believes characterize the Angolan market. Included among mitigating measures taken by the company to address these risks is the redeployment of vessels from time to time to other markets. Redeployment of vessels to and from Angola since June 30, 2017has resulted in a net 8 vessels transferred out of Angola. Company-owned vessels operating in Angola decreased by 47 vessels, from June 30, 2014 to June 30, 2018 (from 84 vessels to 37 vessels).  Company-owned active vessels decreased in the same period by 58 vessels (from 80 vessels to 22 vessels).

Brazilian Customs

In April 2011, two Brazilian subsidiaries of the company were notified by the Customs Office in Macae, Brazil that they were jointly and severally being assessed fines of 33.0 million Brazilian reais (approximately $8.5 million as of June 30, 2018). Other fines imposed at that same time by the Customs Office have been formally resolved in favor of the company. The assessment of these fines is for the alleged failure of these subsidiaries to obtain import licenses with respect to company vessels that provided Brazilian offshore vessel services to Petrobras, the Brazilian national oil company, over a three-year period ended December 2009. After consultation with its Brazilian tax advisors, the company and its Brazilian subsidiaries believe that vessels that provide services under contract to the Brazilian offshore oil and gas industry are deemed, under applicable law and regulations, to be temporarily imported into Brazil, and thus exempt from the import license requirement.

The company is vigorously contesting these fines (which it has neither paid nor accrued). Based on the advice of its Brazilian counsel, the company believes that it has a high probability of success with respect to overturning the entire amount of the fines, either at the administrative appeal level or, if necessary, in Brazilian courts. In May 2016, a final administrative appeal allowed fines totaling 3.0 million Brazilian reais (approximately $0.8 million as of June 30, 2018). The company appealed this 3.0 million Brazilian reais administrative award to the appropriate Brazilian court and deposited 6.0 million Brazilian reais (approximately $1.5 million as of June 30, 2018) with the court. The 6.0 million Brazilian reais deposit represents the amount of the award and the substantial interest that would be due if the company did not prevail in this court action. The court action is in its initial stages. The remaining fines totaling 30.0 million Brazilian reais(approximately $7.7 million as of June 30, 2018) are still subject to additional administrative appeals board hearings, but the company believes that previous administrative appeals boarddecisions will be helpful in those upcoming hearings for the vast majority of amounts still claimed by the Macae Customs Office. The company believes that the ultimate resolution of this matter will not have a material effect on the company’s financial position, results of operations or cash flows.

Repairs to U.S. Flagged Vessels Operating Abroad

During fiscal 2015 the company became aware that it may have had compliance deficiencies in documenting and declaring upon re-entry to the U.S. certain foreign purchases for or repairs to U.S. flagged vessels while they were working outside of the U.S.  When a U.S. flagged vessel operates abroad, certain foreign purchases for or repairs made to the U.S. flagged vessel while it is outside of the U.S. are subject to declaration with U.S. Customs and Border Protection (CBP) upon re-entry to the U.S. and are subject to 50% vessel repair duty. During our examination of our filings made in or prior to fiscal 2015 with CBP, we determined that it was necessary to file amended forms with CBP to supplement previous filings.  We have amended several vessel repair entries with CBP and have paid additional vessel repair duties and interest associated with these amended forms. In connection with three of our amended filings, CBP assessed penalties, which the company paid after CBP granted mitigation and reduced the amount of each civil penalty.  The amount paid in civil penalties was not material.  It is possible that CBP may seek to impose further civil penalties or fines in connection with some or all of the other amended filings that could be material.

Currency Devaluation and Fluctuation Risk

Due to the company’s international operations, the company is exposed to foreign currency exchange rate fluctuations and exchange rate risks on all charter hire contracts denominated in foreign currencies. For some of our international contracts, a portion of the revenue and local expenses are incurred in local currencies with the result that the company is at risk of changes in the exchange rates between the U.S. dollar and foreign currencies. We generally do not hedge against any foreign currency rate fluctuations associated with foreign currency contracts that arise in the normal course of business, which exposes us to the risk of exchange rate losses. To minimize the financial impact of these items, the

company attempts to contract a significant majority of its services in U.S. dollars. In addition, the company attempts to minimize the financial impact of these risks by matching the currency of the company’s operating costs with the currency of the revenue streams when considered appropriate. The company continually monitors the currency exchange risks associated with all contracts not denominated in U.S. dollars.  

For more information regarding the reduction in the company’s investment balance as a result of currency devaluation, please refer to the section of Note (10) entitled Sonatide Joint Venture.

Legal Proceedings

Arbitral Award for the Taking of the Company’s Venezuelan Operations

Committees formed under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) have awarded two subsidiaries of the company compensation for the expropriation of the investments of the two subsidiaries by the Bolivarian Republic of Venezuela. The nature of the investments expropriated and the progress of the ICSID proceeding were previously reported by the company in prior filings.  The final aggregate award is $56.9 million as of June 30, 2018 and accrues interest at approximately $0.6 million per quarter. The committees’ decisions are not subject to any further ICSID review, appeal or other substantive proceeding or any stay of enforcement.

The company is committed to taking appropriate steps to enforce and collect the award, which is enforceable in any of the 150 member states that are party to the ICSID Convention.  As an initial step, the company had the award recognized and entered as a judgment by the United States District Court for the Southern District of New York.  A recent federal court of appeals decision resulted in that judgment being vacated for reasons related to service of process. The company has initiated a separate court action in Washington, D.C. using a different service of process method and expects to be successful in having the award recognized in the Washington, D.C. court. In addition, the award has been recognized and entered in November 2016 as a final judgment of the High Court of Justice of England and Wales. Even with the likely eventual recognition of the award in the United States and the current recognition by the court in the United Kingdom, the company recognizes that collection of the award presents significant practical challenges. The company is accounting for this matter as a gain contingency, and will record any such gain in future periods if and when the contingency is resolved, in accordance with ASC 450 Contingencies.

Various legal proceedings and claims are outstanding which arose in the ordinary course of business. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions, will not have a material adverse effect on the company's financial position, results of operations, or cash flows.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

(11) FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The company’s supplemental plan assets are accounted for at fair value and are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement, with the exception of investments for which fair value is measured using the net asset value (NAV) per share expedient.

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable		Measured at
			active markets		inputs		inputs		Net Asset
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Value
Cash and cash equivalents	$	45		—		—		—		45
Total fair value of plan assets	$	45		—		—		—		45

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of December 31, 2017 (Successor):

							Significant		Significant
				Quoted prices in			observable		unobservable		Measured at
				active markets			inputs		inputs		Net Asset
(In thousands)	Total			(Level 1)			(Level 2)		(Level 3)		Value
Equity securities	$	5,295			5,295			—		—		—
Debt securities		3,368			851			841		—		1,676
Cash and cash equivalents		246			27			170		—		49
Total	$	8,909			6,173			1,011		—		1,725
Other pending transactions		(1	)		(1	)		—		—		—
Total fair value of plan assets	$	8,908			6,172			1,011		—		1,725

Other Financial Instruments

The company’s primary financial instruments consist of cash, cash equivalents and restricted cash, trade receivables and trade payables with book values that are considered to be representative of their respective fair values. The company periodically utilizes derivative financial instruments to hedge against foreign currency denominated assets and liabilities, currency commitments, or to lock in desired interest rates. These transactions are generally spot or forward currency contracts or interest rate swaps that are entered into with major financial institutions. Derivative financial instruments are intended to reduce the company’s exposure to foreign currency exchange risk and interest rate risk. The company enters into derivative instruments only to the extent considered necessary to address its risk management objectives and does not use derivative contracts for speculative purposes. The derivative instruments are recorded at fair value using quoted prices and quotes obtainable from the counterparties to the derivative instruments.

Cash Equivalents.  The company’s cash equivalents, which are securities with maturities less than 90 days, are held in deposit accounts with highly rated financial institutions. The carrying value for cash equivalents is considered to be representative of its fair value due to the short duration and conservative nature of the cash equivalent investment portfolio.

Spot Derivatives. Spot derivative financial instruments are short-term in nature and generally settle within two business days. The fair value of spot derivatives approximates the carrying value due to the short-term nature of this instrument, and as a result, no gains or losses are recognized.

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	423,131		423,131		—		—
Total fair value of assets	$	423,131		423,131		—		—

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of December 31, 2017 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	399,322		399,322		—		—
Total fair value of assets	$	399,322		399,322		—		—

For disclosures related to assets and liabilities measured at fair value on a nonrecurring basis refer to Note (14).

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OTHER CURRENT ASSETS, PROPERTIES AND EQUIPMENT, OTHER ASSETS, ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES AND DEFERRED CREDITS

6 Months Ended

Jun. 30, 2018

Other Current Assets Properties And Equipment Other Assets Accrued Expenses Other Current Liabilities And Other Non Current Liabilities And Deferred Credits [Abstract]

OTHER CURRENT ASSETS, PROPERTIES AND EQUIPMENT, OTHER ASSETS, ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES AND DEFERRED CREDITS

(12) OTHER CURRENT ASSETS, PROPERTIES AND EQUIPMENT, OTHER ASSETS, ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES          

A summary of other current assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Deposits	$	2,151		1,780
Investments held in rabbi trust (A)		45		8,908
Prepaid expenses		8,017		8,442
	$	10,213		19,130

(A) The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

A summary of net properties and equipment at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Properties and equipment:
Vessels and related equipment	$	836,773		850,268
Other properties and equipment		5,481		5,710
		842,254		855,978
Less accumulated depreciation and amortization		38,529		18,458
Net properties and equipment	$	803,725		837,520

A summary of other assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Recoverable insurance losses	$	2,585		2,405
Investments held for supplemental savings plan accounts		5,274		6,583
Long-term deposits		13,763		16,217
Other		5,157		5,847
	$	26,779		31,052

A summary of accrued expenses at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Payroll and related payables (B)	$	9,004		17,344
Commissions payable (C)		2,488		1,898
Accrued vessel expenses		28,701		27,222
Accrued interest expense		5,958		6,036
Other accrued expenses		3,161		2,306
	$	49,312		54,806

(B) The balance at December 31, 2017 includes $8.9 million payable to the former CEO, which was paid in May 2018.

(C) Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

respectively. These amounts are included in amounts due to affiliates.

A summary of other current liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Taxes payable	$	15,988		10,326
Amounts payable to holders of General Unsecured Claims		—		8,474
Other		1,827		893
	$	17,815		19,693

A summary of other liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Postretirement benefits liability	$	2,420		2,642
Pension liabilities		36,526		36,614
Deferred supplemental savings plan liability		5,277		6,592
Other		13,462		12,728
	$	57,685		58,576

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SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS

(13) SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS

During the quarter ended March 31, 2018, the company’s Africa/Europe segment was split as a result of management realignment such that the company’s operations in Europe and Mediterranean Sea regions and the company’s West African regions are now separately reported segments. As such, the company now discloses these new segments as Europe/Mediterranean Sea and West Africa, respectively. The company’s Americas and Middle East/Asia Pacific segments are not affected by this change. This new segment alignment is consistent with how the company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Prior year amounts have been recast to conform to the new segment alignment.

The following table provides a comparison of segment revenues, vessel operating profit (loss), depreciation and amortization, and additions to properties and equipment for the quarters and six month periods ended June 30, 2018 and 2017. Vessel revenues and operating costs relate to vessels owned and operated by the company while other operating revenues relate to brokered vessels and other miscellaneous marine-related businesses.

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Revenues:
Vessel revenues:
Americas	$	32,601			31,887			58,682			112,420
Middle East/Asia Pacific		22,406			27,766			40,794			54,444
Europe/Mediterranean Sea		13,357			11,031			22,980			21,197
West Africa		35,810			41,573			69,212			81,101
		104,174			112,257			191,668			269,162
Other operating revenues (A)		1,427			2,849			5,426			6,693
	$	105,601			115,106			197,094			275,855
Vessel operating profit (loss):
Americas	$	5,681			(15,699	)		10,592			14,919
Middle East/Asia Pacific		625			(1,316	)		(1,628	)		(7,480	)
Europe/Mediterranean Sea		(1,142	)		(10,163	)		(4,696	)		(17,265	)
West Africa		1,705			(2,774	)		(48	)		(8,127	)
		6,869			(29,952	)		4,220			(17,953	)
Other operating profit (loss)		778			55			2,284			(170	)
		7,647			(29,897	)		6,504			(18,123	)
Corporate general and administrative expenses		(7,810	)		(14,702	)		(14,494	)		(36,459	)
Corporate depreciation		(100	)		(541	)		(200	)		(1,105	)
Corporate expenses		(7,910	)		(15,243	)		(14,694	)		(37,564	)
Gain on asset dispositions, net		1,338			3,189			3,257			9,253
Asset impairments (B)		(1,215	)		(163,423	)		(7,401	)		(228,280	)
Operating loss	$	(140	)		(205,374	)		(12,334	)		(274,714	)
Foreign exchange loss		(1,002	)		(1,157	)		(1,350	)		(493	)
Equity in net earnings (losses) of unconsolidated companies		390			4,517			(15,049	)		7,358
Interest income and other, net		2,914			1,680			2,786			3,268
Reorganization items		—			(313,176	)		—			(313,176	)
Interest and other debt costs, net		(7,547	)		(10,605	)		(15,146	)		(31,613	)
Loss before income taxes	$	(5,385	)		(524,115	)		(41,093	)		(609,370	)
Depreciation and amortization:
Americas	$	3,530			10,748			6,843			22,045
Middle East/Asia Pacific		2,844			7,746			5,613			16,245
Europe/Mediterranean Sea		2,239			6,803			4,043			13,364
West Africa		4,067			9,595			8,093			19,411
		12,680			34,892			24,592			71,065
Other		5			854			10			1,709
Corporate		100			541			200			1,105
	$	12,785			36,287			24,802			73,879
Additions to properties and equipment:
Americas	$	1,230			27			2,267			27
Middle East/Asia Pacific		1,073			648			1,496			1,673
Europe/Mediterranean Sea		135			—			135			—
West Africa		—			274			1			368
		2,438			949			3,899			2,068
Other		—			—			—			—
Corporate (C)		1,659			678			1,876			7,632
	$	4,097			1,627			5,775			9,700

(A) Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

(B) Refer to Note (14) for additional information regarding asset impairment.

(C) Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not yet been assigned to a non-corporate reporting segment as of the dates presented.

The following table provides a comparison of total assets at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
Total assets (A):
Americas (B)	$	310,121		164,958
Middle East/Asia Pacific		215,105		48,268
Europe/Mediterranean Sea		167,695		171,157
West Africa (C)		486,333		864,299
		1,179,254		1,248,682
Other		363		2,443
		1,179,617		1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,335		29,216
		1,180,953		1,280,341
Corporate (D)		462,589		465,839
	$	1,643,542		1,746,180

(A) The company’s segment level assets as of June 30, 2018, reflect the elimination of certain intersegment balances.

(B) Americas segment assets include cash held by non-corporate subsidiaries of $94.6 million and 95.1 million, as of June 30, 2018 and December 31, 2017, respectively.

(C) West Africa segment assets include due from related parties of $197.1 million and $263.7 million as of June 30, 2018 and December 31, 2017, respectively.

(D) Corporate includes cash (including restricted cash) of $353.2 million and $336.4 million as of June 30, 2018 and December 31. 2017, respectively. Also included in Corporate is a vessel under construction which has not yet been assigned to a non-corporate reporting segment. A vessel’s construction costs are reported in Corporate until the earlier of the date the vessel is assigned to a non-corporate reporting segment or the date it is delivered. At June 30, 2018 and December 31, 2017, $11.2 million and $9.3 million, respectively, of vessel construction costs are included in Corporate.

The following table compares revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue for the quarters and six month periods ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor):

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
Vessel revenue by vessel class (In thousands)			% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue						% of Vessel Revenue
Americas fleet:
Deepwater	$	22,661		22	%		17,313		15	%	$	38,866		20	%		80,144			30	%
Towing-supply		7,560		7	%		11,274		10	%		14,406		8	%		26,012			10	%
Other		2,380		2	%		3,300		3	%		5,410		3	%		6,264			2	%
Total	$	32,601		31	%		31,887		28	%	$	58,682		31	%		112,420			42	%
Middle East/Asia Pacific fleet:
Deepwater	$	9,603		9	%		10,701		10	%	$	19,167		10	%		20,134			7	%
Towing-supply		12,783		12	%		17,065		15	%		21,607		11	%		34,310			13	%
Other		20		<1	%		—		—			20		<1	%		—			—
Total	$	22,406		21	%		27,766		25	%	$	40,794		21	%		54,444			20	%
Europe/Mediterranean Sea fleet:
Deepwater	$	12,596		12	%		8,237		8	%	$	21,616		11	%		18,090			7	%
Towing-supply		761		1	%		2,794		2	%		1,364		1	%		3,116			1	%
Other		—		—			—		—			—		—			(9	)		(<1	%)
Total	$	13,357		13	%		11,031		10	%	$	22,980		12	%		21,197			8	%
West Africa fleet:
Deepwater	$	14,314		14	%		13,921		12	%	$	28,252		15	%		27,100			10	%
Towing-supply		17,321		17	%		24,225		22	%		33,460		17	%		46,697			17	%
Other		4,175		4	%		3,427		3	%		7,500		4	%		7,304			3	%
Total	$	35,810		35	%		41,573		37	%	$	69,212		36	%		81,101			30	%
Worldwide fleet:
Deepwater	$	59,174		57	%		50,172		45	%	$	107,901		56	%		145,468			54	%
Towing-supply		38,425		37	%		55,358		49	%		70,837		37	%		110,135			41	%
Other		6,575		6	%		6,727		6	%		12,930		7	%		13,559			5	%
Total	$	104,174		100	%		112,257		100	%	$	191,668		100	%		269,162			100	%

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ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 2018

Asset Impairment Charges [Abstract]

ASSET IMPAIRMENTS

(14) ASSET IMPAIRMENTS

Management estimates the fair value of each vessel not expected to return to active service (considered Level 3, as defined by ASC 820, Fair Value Measurements and Disclosures) by considering items such as the vessel’s age, length of time stacked, likelihood of a return to active service and actual recent sales of similar vessels, among others. For vessels with more significant carrying values, we obtain an estimate of the fair value of the stacked vessel from third-party appraisers or brokers for use in our determination of fair value estimates.

Stacked vessels expected to return to active service are generally newer vessels, have similar capabilities and likelihood of future active service as other currently operating vessels, are generally current with classification societies in regards to their regulatory certification status, and are being actively marketed. Stacked vessels expected to return to service are evaluated for impairment as part of their assigned active asset group and not individually.

The company reviews the vessels in its active fleet for impairment whenever events occur or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. In such evaluation, the estimated future undiscounted cash flows generated by an asset group are compared with the carrying amount of the asset group to determine if a write-down may be required. If an asset group fails the undiscounted cash flow test, the company estimates the fair value of each asset group and compares such estimated fair value, considered Level 3, as defined by ASC 820, Fair Value Measurements and Disclosures, to the carrying value of each asset group in order to determine if impairment exists. Similar to stacked vessels, management obtains estimates of the fair values of the active vessels from third party appraisers or brokers for use in determining fair value estimates.

The below table summarizes the number of vessels impaired and the amount of the impairment incurred during the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands, except number of vessels impaired)	2018		2017		2018		2017
Number of vessels impaired in the period (A)		2		77		15		89
Amount of impairment incurred	$	1,215		163,423		7,401		228,280

(A) For the quarter and six months periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively and for the six month period ended June 30, 2017 there were 83 stacked vessels and 6 active vessels impaired, respectively.  

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Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Event

(15) SUBSEQUENT EVENT

On July 15, 2018, the company and GulfMark Offshore, Inc. (“GulfMark”) entered into a definitive merger agreement to combine the two companies. Under the terms of the agreement, GulfMark stockholders will receive 1.1 shares of company common stock for each share of GulfMark common stock.  Each GulfMark noteholder warrant will be automatically converted into the right to receive 1.1 company shares, subject to Jones Act restrictions on maximum ownership of shares by non-U.S. citizens.  The company will assume GulfMark's obligations under existing GulfMark equity warrants. Upon completion of the proposed merger, the company’s and GulfMark’s stockholders will own approximately 74 percent and 26 percent, respectively, of the combined company.

The proposed merger is expected to close in the fourth quarter of 2018, subject to regulatory and other customary closing conditions, including approval from the stockholders of the company and GulfMark. If the merger agreement is terminated under certain circumstances, the company may be obligated to pay GulfMark a termination fee of $35.0 million, and GulfMark may be obligated to pay the company a termination fee of $13.0 million.  

On August 6, 2018, GulfMark issued a press release confirming receipt of a non-binding, unsolicited proposal from HGIM Corp. (“Harvey Gulf”) to combine the companies through a merger in which GulfMark would acquire Harvey Gulf, with the combined company remaining publicly listed and GulfMark stockholders owning 41.2% of the combined company.  According to GulfMark, its Board of Directors, with the assistance of outside financial and legal advisors, will review the Harvey Gulf unsolicited proposal.  In that same press release, the GulfMark Board of Directors confirmed its belief that, at the time of the release, the Tidewater merger is in the best interests of GulfMark's stockholders and continues to recommend that GulfMark stockholders adopt the merger agreement at the special meeting of GulfMark stockholders to be scheduled for this fall.

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INTERIM FINANCIAL STATEMENTS (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Reorganization and Fresh Start Accounting

Reorganization and Fresh Start Accounting

References to "Successor" or "Successor Company" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017. References to "Predecessor" or "Predecessor Company" relate to the financial position and results of operations of the company through July 31, 2017.

On July 31, 2017, the company and certain of its subsidiaries that had been named as additional debtors in the Chapter 11 proceedings emerged from bankruptcy after successfully completing its reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of the company and its Affiliated Debtors (the “Plan”). Upon the company's emergence from Chapter 11 bankruptcy, the company qualified for and adopted fresh-start accounting in accordance with the provisions set forth in ASC 852, which requires the company to present its assets, liabilities, and equity as if it were a new entity upon emergence from bankruptcy. The implementation of the Plan and the application of fresh-start accounting materially changed the carrying amounts and classifications reported in the company’s consolidated financial statements and resulted in the company becoming a new entity for financial reporting purposes. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan, the financial statements after July 31, 2017 are not comparable with the financial statements prior to July 31, 2017. Therefore, "black-line" financial statements are presented to distinguish between the Predecessor and Successor companies.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

Schedule of Segment Reporting Information, Revenue by Vessel

The following table discloses the amount of revenue by segment and in total for the worldwide fleet, for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Vessel revenues:
Americas	$	32,601		31,887		58,682		112,420
Middle East/Asia Pacific		22,406		27,766		40,794		54,444
Europe/Mediterranean Sea		13,357		11,031		22,980		21,197
West Africa		35,810		41,573		69,212		81,101
		104,174		112,257		191,668		269,162

Summarizes The Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations

The table below summarizes the revenue expected to be recognized in future quarters related to unsatisfied performance obligations as of June 30, 2018:

		Successor
		For the quarter period ended
(In thousands)		September 30, 2018		December 31, 2018		Total
Contract liabilities/deferred revenue	$		692		552		1,244

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STOCKHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax

The changes in accumulated other comprehensive income (loss) by component, net of tax for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	For the quarter ended June 30, 2018 (Successor)												For the six months ended June 30, 2018 (Successor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/18			in OCI		net income		OCI		6/30/18			12/31/17			in OCI			net income		OCI			6/30/18
Available for sale securities		(43	)		—		43		43		—			256			(660	)		404		(256	)		—
Pension/Post- retirement benefits		(403	)		—		—		—		(403	)		(403	)		—			—		—			(403	)
Total		(446	)		—		43		43		(403	)		(147	)		(660	)		404		(256	)		(403	)

	For the quarter ended June 30, 2017 (Predecessor)												For the six months ended June 30, 2017 (Predecessor)
	Balance			Gains/(losses)		Reclasses		Net		Remaining			Balance			Gains/(losses)			Reclasses		Net			Remaining
	at			recognized		fromOCI to		period		balance			at			recognized			fromOCI to		period			balance
(in thousands)	3/31/17			in OCI		net income		OCI		6/30/17			12/31/16			in OCI			net income		OCI			6/30/17
Available for sale securities		(95	)		6		80		86		(9	)		(1	)		(209	)		201		(8	)		(9	)
Currency translation adjustment		(9,811	)		—		—		—		(9,811	)		(9,811	)		—			—		—			(9,811	)
Pension/Post- retirement benefits		(438	)		—		—		—		(438	)		4,683			(5,121	)		—		(5,121	)		(438	)
Interest rate swap		—			—		—		—		—			(1,317	)		—			1,317		1,317			—
Total		(10,344	)		6		80		86		(10,258	)		(6,446	)		(5,330	)		1,518		(3,812	)		(10,258	)

Reclassifications from Accumulated Other Comprehensive Income (Loss) to Condensed Consolidated Statement of Income

The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statement of income for the quarters and six month periods ended June 30, 2018 and 2017:

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,		Affected line item in thecondensed
(In thousands)	2018		2017		2018		2017		consolidated statements of income
Realized gains on available for sale securities	$	43		80		404		405	Interest income and other, net
Interest rate swap		—		—		—		2,140	Interest and other debt costs
Total pre-tax amounts		43		80		404		2,545
Tax effect		—		—		—		1,027
Total gains for the period, net of tax	$	43		80		404		1,518

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of Uncertain Tax Positions and Income Tax Payable

The company’s balance sheet at June 30, 2018, reflects the following in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes:

	June 30,
(In thousands)	2018
Tax liabilities for uncertain tax positions	$	19,626
Income tax payable	$	8,995
Income tax receivable	$	7,814

Schedule of Unrecognized Tax Benefits Which Would Lower Effective Tax Rate if Realized

Unrecognized tax benefits, which would lower the effective tax rate if realized at June 30, 2018, are as follows:

	June 30,
(In thousands)	2018
Unrecognized tax benefit related to state tax issues	$	12,425
Interest receivable on unrecognized tax benefit related to state tax issues	$	58

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Schedule of Carrying Value of Trust Assets, Including Unrealized Gains or Losses

The following table summarizes the carrying value of the trust assets, including unrealized gains or losses at June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Investments held in Rabbi Trust at fair value	$	45		8,908
Unrealized gains in fair value of trust assets		—		256
Obligations under the supplemental plan		23,797		32,508

Schedule of Net Periodic Benefit Cost

The net periodic benefit cost for the company’s defined benefit pension plans and supplemental plan (referred to collectively as “Pension Benefits”) and the postretirement health care and life insurance plan (referred to collectively as “Other Benefits”) is comprised of the following components:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Pension Benefits:
Service cost	$	41			294			71			713
Interest cost		882			984			1,784			1,975
Expected return on plan assets		(482	)		(518	)		(964	)		(1,119	)
Administrative expenses		2			2			3			24
Payroll tax of net pension costs		—			—			—			56
Amortization of net actuarial losses		—			—			—			32
Recognized actuarial loss		—			561			—			1,008
Settlement loss recognized		335			—			335			—
Net periodic pension cost	$	778			1,323			1,229			2,689
Other Benefits:
Service cost	$	15			17			30			38
Interest cost		29			48			58			99
Amortization of prior service cost		(75	)		(695	)		(150	)		(1,783	)
Recognized actuarial benefit		11			(252	)		22			(535	)
Net periodic postretirement benefit	$	(20	)		(882	)		(40	)		(2,181	)

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INDEBTEDNESS (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Debt Outstanding

The following is a summary of all debt outstanding at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
New secured notes:
8.00% New secured notes due August 2022 (A)		349,954		350,000
Troms Offshore borrowings (B):
NOK denominated notes due May 2024		13,595		14,054
NOK denominated notes due January 2026		25,315		25,965
USD denominated notes due January 2027		22,729		23,345
USD denominated notes due April 2027		24,810		25,463
	$	436,403		438,827
Debt premiums and discounts, net		8,446		9,333
Less: Current portion of long-term debt		6,290		5,103
Total long-term debt	$	438,559		443,057

(A)   As of June 30, 2018 and December 31, 2017, the fair value (Level 2) of the New Secured Notes was $361.5 million and $359.8 million, respectively.  

(B) The company pays principal and interest on these notes semi-annually.  As of June 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $86.4 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of June 30, 2018, was 5.00%.

Debt Costs

The following is a summary of interest and debt costs incurred, net of interest capitalized, for the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands)	2018		2017		2018		2017
Interest and debt costs incurred, net of interest capitalized	$	7,547		10,605	$	15,146		31,613
Interest costs capitalized		194		601		368		1,818
Total interest and debt costs	$	7,741		11,206	$	15,514		33,431

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LOSS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Components of Basic and Diluted Loss Per Share

The components of basic and diluted loss per share for the quarters and six month periods ended June 30, 2018 and 2017 are as follows:

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands, except share and per share data)	2018			2017			2018			2017
Net loss available to common shareholders	$	(10,940	)		(524,434	)		(50,112	)		(619,289	)
Weighted average outstanding shares of common stock, basic (A)		24,654,220			47,121,304			23,989,254			47,101,155
Dilutive effect of options, warrants and restricted stock awards and units		—			—			—			—
Weighted average shares of common stock and equivalents		24,654,220			47,121,304			23,989,254			47,101,155
Loss per share, basic (B)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Loss per share, diluted (C)	$	(0.44	)		(11.13	)		(2.09	)		(13.15	)
Additional information:
Incremental "in-the-money" options, warrants and restricted stock awards and units at the end of the period (D)		4,521,727			183			5,454,218			183

(A) Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018, were 26,085,274, 3,924,441 and 30,009,715, respectively.

(B) The company calculates “Loss per share, basic” by dividing “Net loss available to common shareholders” by “Weighted average outstanding shares of common stock, basic”.

(C) The company calculates “Loss per share, diluted” by dividing “Net loss available to common shareholders” by “Weighted average common stock and equivalents”.

(D) For the six months ended June 30, 2018, the company also had 5,062,089 shares of “out-of- the-money” warrants outstanding at the end of the period.

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RELATED PARTY BALANCES (Tables)

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Schedule of Balances with Related Parties

The company maintained the following balances with related parties as of June 30, 2018 and December 31, 2017:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Due from related parties:
Sonatide (Angola)	$	152,826		230,315
DTDW (Nigeria)		44,233		33,353
Due to related parties:
Sonatide (Angola)	$	46,742		99,448
DTDW (Nigeria)		15,611		9,645
Due from related parties, net of due to related parties	$	134,706		154,575

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable		Measured at
			active markets		inputs		inputs		Net Asset
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)		Value
Cash and cash equivalents	$	45		—		—		—		45
Total fair value of plan assets	$	45		—		—		—		45

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of December 31, 2017 (Successor):

							Significant		Significant
				Quoted prices in			observable		unobservable		Measured at
				active markets			inputs		inputs		Net Asset
(In thousands)	Total			(Level 1)			(Level 2)		(Level 3)		Value
Equity securities	$	5,295			5,295			—		—		—
Debt securities		3,368			851			841		—		1,676
Cash and cash equivalents		246			27			170		—		49
Total	$	8,909			6,173			1,011		—		1,725
Other pending transactions		(1	)		(1	)		—		—		—
Total fair value of plan assets	$	8,908			6,172			1,011		—		1,725

Schedule of Fair Value Other Financial Instruments Measured

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of June 30, 2018 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	423,131		423,131		—		—
Total fair value of assets	$	423,131		423,131		—		—

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of December 31, 2017 (Successor):

					Significant		Significant
			Quoted prices in		observable		unobservable
			active markets		inputs		inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	399,322		399,322		—		—
Total fair value of assets	$	399,322		399,322		—		—

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OTHER CURRENT ASSETS, PROPERTIES AND EQUIPMENT, OTHER ASSETS, ACCRUED EXPENSES, OTHER CURRENT LIABILITIES AND OTHER LIABILITIES AND DEFERRED CREDITS (Tables)

6 Months Ended

Jun. 30, 2018

Other Current Assets Properties And Equipment Other Assets Accrued Expenses Other Current Liabilities And Other Non Current Liabilities And Deferred Credits [Abstract]

Schedule of Other Current Assets

A summary of other current assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Deposits	$	2,151		1,780
Investments held in rabbi trust (A)		45		8,908
Prepaid expenses		8,017		8,442
	$	10,213		19,130

(A) The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

Summary of Net Properties and Equipment

A summary of net properties and equipment at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Properties and equipment:
Vessels and related equipment	$	836,773		850,268
Other properties and equipment		5,481		5,710
		842,254		855,978
Less accumulated depreciation and amortization		38,529		18,458
Net properties and equipment	$	803,725		837,520

Schedule Of Other Assets

A summary of other assets at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Recoverable insurance losses	$	2,585		2,405
Investments held for supplemental savings plan accounts		5,274		6,583
Long-term deposits		13,763		16,217
Other		5,157		5,847
	$	26,779		31,052

Schedule of Accrued Expenses

A summary of accrued expenses at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Payroll and related payables (B)	$	9,004		17,344
Commissions payable (C)		2,488		1,898
Accrued vessel expenses		28,701		27,222
Accrued interest expense		5,958		6,036
Other accrued expenses		3,161		2,306
	$	49,312		54,806

(A) The balance at December 31, 2017 includes $8.9 million payable to the former CEO, which was paid in May 2018.

(B) Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

respectively. These amounts are included in amounts due to affiliates.

Schedule of Other Current Liabilities

A summary of other current liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Taxes payable	$	15,988		10,326
Amounts payable to holders of General Unsecured Claims		—		8,474
Other		1,827		893
	$	17,815		19,693

Schedule of Other Liabilities and Deferred Credits

A summary of other liabilities at June 30, 2018 and December 31, 2017 is as follows:

	Successor
	June 30,		December 31,
(In thousands)	2018		2017
Postretirement benefits liability	$	2,420		2,642
Pension liabilities		36,526		36,614
Deferred supplemental savings plan liability		5,277		6,592
Other		13,462		12,728
	$	57,685		58,576

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SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information, Geographical Data and Major Customers

The following table provides a comparison of segment revenues, vessel operating profit (loss), depreciation and amortization, and additions to properties and equipment for the quarters and six month periods ended June 30, 2018 and 2017. Vessel revenues and operating costs relate to vessels owned and operated by the company while other operating revenues relate to brokered vessels and other miscellaneous marine-related businesses.

	Successor			Predecessor			Successor			Predecessor
	Quarter Ended			Quarter Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)	2018			2017			2018			2017
Revenues:
Vessel revenues:
Americas	$	32,601			31,887			58,682			112,420
Middle East/Asia Pacific		22,406			27,766			40,794			54,444
Europe/Mediterranean Sea		13,357			11,031			22,980			21,197
West Africa		35,810			41,573			69,212			81,101
		104,174			112,257			191,668			269,162
Other operating revenues (A)		1,427			2,849			5,426			6,693
	$	105,601			115,106			197,094			275,855
Vessel operating profit (loss):
Americas	$	5,681			(15,699	)		10,592			14,919
Middle East/Asia Pacific		625			(1,316	)		(1,628	)		(7,480	)
Europe/Mediterranean Sea		(1,142	)		(10,163	)		(4,696	)		(17,265	)
West Africa		1,705			(2,774	)		(48	)		(8,127	)
		6,869			(29,952	)		4,220			(17,953	)
Other operating profit (loss)		778			55			2,284			(170	)
		7,647			(29,897	)		6,504			(18,123	)
Corporate general and administrative expenses		(7,810	)		(14,702	)		(14,494	)		(36,459	)
Corporate depreciation		(100	)		(541	)		(200	)		(1,105	)
Corporate expenses		(7,910	)		(15,243	)		(14,694	)		(37,564	)
Gain on asset dispositions, net		1,338			3,189			3,257			9,253
Asset impairments (B)		(1,215	)		(163,423	)		(7,401	)		(228,280	)
Operating loss	$	(140	)		(205,374	)		(12,334	)		(274,714	)
Foreign exchange loss		(1,002	)		(1,157	)		(1,350	)		(493	)
Equity in net earnings (losses) of unconsolidated companies		390			4,517			(15,049	)		7,358
Interest income and other, net		2,914			1,680			2,786			3,268
Reorganization items		—			(313,176	)		—			(313,176	)
Interest and other debt costs, net		(7,547	)		(10,605	)		(15,146	)		(31,613	)
Loss before income taxes	$	(5,385	)		(524,115	)		(41,093	)		(609,370	)
Depreciation and amortization:
Americas	$	3,530			10,748			6,843			22,045
Middle East/Asia Pacific		2,844			7,746			5,613			16,245
Europe/Mediterranean Sea		2,239			6,803			4,043			13,364
West Africa		4,067			9,595			8,093			19,411
		12,680			34,892			24,592			71,065
Other		5			854			10			1,709
Corporate		100			541			200			1,105
	$	12,785			36,287			24,802			73,879
Additions to properties and equipment:
Americas	$	1,230			27			2,267			27
Middle East/Asia Pacific		1,073			648			1,496			1,673
Europe/Mediterranean Sea		135			—			135			—
West Africa		—			274			1			368
		2,438			949			3,899			2,068
Other		—			—			—			—
Corporate (C)		1,659			678			1,876			7,632
	$	4,097			1,627			5,775			9,700

(A) Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

(B) Refer to Note (14) for additional information regarding asset impairment.

(C) Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not yet been assigned to a non-corporate reporting segment as of the dates presented.

Comparison of Total Assets

The following table provides a comparison of total assets at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In thousands)	2018		2017
Total assets (A):
Americas (B)	$	310,121		164,958
Middle East/Asia Pacific		215,105		48,268
Europe/Mediterranean Sea		167,695		171,157
West Africa (C)		486,333		864,299
		1,179,254		1,248,682
Other		363		2,443
		1,179,617		1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,335		29,216
		1,180,953		1,280,341
Corporate (D)		462,589		465,839
	$	1,643,542		1,746,180

(A) The company’s segment level assets as of June 30, 2018, reflect the elimination of certain intersegment balances.

(B) Americas segment assets include cash held by non-corporate subsidiaries of $94.6 million and 95.1 million, as of June 30, 2018 and December 31, 2017, respectively.

(C) West Africa segment assets include due from related parties of $197.1 million and $263.7 million as of June 30, 2018 and December 31, 2017, respectively.

(D) Corporate includes cash (including restricted cash) of $353.2 million and $336.4 million as of June 30, 2018 and December 31. 2017, respectively. Also included in Corporate is a vessel under construction which has not yet been assigned to a non-corporate reporting segment. A vessel’s construction costs are reported in Corporate until the earlier of the date the vessel is assigned to a non-corporate reporting segment or the date it is delivered. At June 30, 2018 and December 31, 2017, $11.2 million and $9.3 million, respectively, of vessel construction costs are included in Corporate.

Schedule of Segment Reporting Information, Revenue by Vessel Class

The following table compares revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue for the quarters and six month periods ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor):

	Successor					Predecessor					Successor					Predecessor
	Quarter Ended					Quarter Ended					Six Months Ended					Six Months Ended
	June 30, 2018					June 30, 2017					June 30, 2018					June 30, 2017
Vessel revenue by vessel class (In thousands)			% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue						% of Vessel Revenue
Americas fleet:
Deepwater	$	22,661		22	%		17,313		15	%	$	38,866		20	%		80,144			30	%
Towing-supply		7,560		7	%		11,274		10	%		14,406		8	%		26,012			10	%
Other		2,380		2	%		3,300		3	%		5,410		3	%		6,264			2	%
Total	$	32,601		31	%		31,887		28	%	$	58,682		31	%		112,420			42	%
Middle East/Asia Pacific fleet:
Deepwater	$	9,603		9	%		10,701		10	%	$	19,167		10	%		20,134			7	%
Towing-supply		12,783		12	%		17,065		15	%		21,607		11	%		34,310			13	%
Other		20		<1	%		—		—			20		<1	%		—			—
Total	$	22,406		21	%		27,766		25	%	$	40,794		21	%		54,444			20	%
Europe/Mediterranean Sea fleet:
Deepwater	$	12,596		12	%		8,237		8	%	$	21,616		11	%		18,090			7	%
Towing-supply		761		1	%		2,794		2	%		1,364		1	%		3,116			1	%
Other		—		—			—		—			—		—			(9	)		(<1	%)
Total	$	13,357		13	%		11,031		10	%	$	22,980		12	%		21,197			8	%
West Africa fleet:
Deepwater	$	14,314		14	%		13,921		12	%	$	28,252		15	%		27,100			10	%
Towing-supply		17,321		17	%		24,225		22	%		33,460		17	%		46,697			17	%
Other		4,175		4	%		3,427		3	%		7,500		4	%		7,304			3	%
Total	$	35,810		35	%		41,573		37	%	$	69,212		36	%		81,101			30	%
Worldwide fleet:
Deepwater	$	59,174		57	%		50,172		45	%	$	107,901		56	%		145,468			54	%
Towing-supply		38,425		37	%		55,358		49	%		70,837		37	%		110,135			41	%
Other		6,575		6	%		6,727		6	%		12,930		7	%		13,559			5	%
Total	$	104,174		100	%		112,257		100	%	$	191,668		100	%		269,162			100	%

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ASSET IMPAIRMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Asset Impairment Charges [Abstract]

Summary of Vessels Impaired and Amount of Impairment Incurred

The below table summarizes the number of vessels impaired and the amount of the impairment incurred during the quarters and six month periods ended June 30, 2018 and 2017.

	Successor		Predecessor		Successor		Predecessor
	Quarter Ended		Quarter Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(In thousands, except number of vessels impaired)	2018		2017		2018		2017
Number of vessels impaired in the period (A)		2		77		15		89
Amount of impairment incurred	$	1,215		163,423		7,401		228,280

(A) For the quarter and six months periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively and for the six month period ended June 30, 2017 there were 83 stacked vessels and 6 active vessels impaired, respectively.  

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Schedule of Segment Reporting Information, Revenue by Vessel (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 105,601		$ 197,094
Vessel Revenues
Segment Reporting Information [Line Items]
Total revenues	104,174		191,668
Vessel Revenues | Americas
Segment Reporting Information [Line Items]
Total revenues	32,601		58,682
Vessel Revenues | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues	22,406		40,794
Vessel Revenues | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues	13,357		22,980
Vessel Revenues | West Africa
Segment Reporting Information [Line Items]
Total revenues	$ 35,810		$ 69,212
Predecessor
Segment Reporting Information [Line Items]
Total revenues		$ 115,106		$ 275,855
Predecessor | Vessel Revenues
Segment Reporting Information [Line Items]
Total revenues		112,257		269,162
Predecessor | Vessel Revenues | Americas
Segment Reporting Information [Line Items]
Total revenues		31,887		112,420
Predecessor | Vessel Revenues | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues		27,766		54,444
Predecessor | Vessel Revenues | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues		11,031		21,197
Predecessor | Vessel Revenues | West Africa
Segment Reporting Information [Line Items]
Total revenues		$ 41,573		$ 81,101

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Revenue Recognition - Additional Information (Detail) - Vessel Mobilization $ in Millions	Jun. 30, 2018 USD ($)
Disaggregation Of Revenue [Line Items]
Deferred costs included within other current assets	$ 0.1
Contract liabilities/deferred revenue included within other current liabilities	$ 1.2

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Summarizes The Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) - Unsatisfied Performance Obligations - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018
Revenue expected to be recognized in future related to unsatisfied performance obligations [Line Items]
Contract liabilities/deferred revenue			$ 1,244
Scenario, Forecast
Revenue expected to be recognized in future related to unsatisfied performance obligations [Line Items]
Contract liabilities/deferred revenue	$ 552	$ 692

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Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 1,021,944
Balance	$ 975,526		975,526
Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance				$ 1,747,564
Balance		$ 1,125,830		1,125,830
Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(43)		256
Gains/(losses) recognized in OCI			(660)
Reclasses from OCI to net income	43		404
Net period OCI	43		(256)
Balance	0		0
Available for Sale Securities | Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(95)		(1)
Gains/(losses) recognized in OCI		6		(209)
Reclasses from OCI to net income		80		201
Net period OCI		86		(8)
Balance		(9)		(9)
Pension/Post-retirement Benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(403)		(403)
Gains/(losses) recognized in OCI	0		0
Reclasses from OCI to net income	0		0
Net period OCI	0		0
Balance	(403)		(403)
Pension/Post-retirement Benefits | Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(438)		4,683
Gains/(losses) recognized in OCI		0		(5,121)
Reclasses from OCI to net income		0
Net period OCI		0		(5,121)
Balance		(438)		(438)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(446)		(147)
Gains/(losses) recognized in OCI			(660)
Reclasses from OCI to net income	43		404
Net period OCI	43		(256)
Balance	$ (403)		$ (403)
Accumulated other comprehensive loss | Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(10,344)		(6,446)
Gains/(losses) recognized in OCI		6		(5,330)
Reclasses from OCI to net income		80		1,518
Net period OCI		86		(3,812)
Balance		(10,258)		(10,258)
Currency Translation Adjustment | Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance		(9,811)		(9,811)
Gains/(losses) recognized in OCI		0		0
Reclasses from OCI to net income		0		0
Net period OCI		0		0
Balance		(9,811)		(9,811)
Interest Rate Swaps | Predecessor
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance				(1,317)
Gains/(losses) recognized in OCI				0
Reclasses from OCI to net income				1,317
Net period OCI				1,317
Balance		$ 0		$ 0

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Reclassifications from Accumulated Other Comprehensive Income (Loss) to Condensed Consolidated Statement of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income and other, net	$ 2,914		$ 2,786
Interest and other debt costs	7,547		15,146
Loss before income taxes	(5,385)		(41,093)
Tax effect	5,797		9,118
Net loss attributable to Tidewater Inc.	(10,940)		(50,112)
Predecessor
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income and other, net		$ 1,680		$ 3,268
Interest and other debt costs		10,605		31,613
Loss before income taxes		(524,115)		(609,370)
Tax effect		295		2,012
Net loss attributable to Tidewater Inc.		(524,434)		(619,289)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss before income taxes	43		404
Net loss attributable to Tidewater Inc.	43		404
Reclassification out of Accumulated Other Comprehensive Income | Available for Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income and other, net	$ 43		$ 404
Reclassification out of Accumulated Other Comprehensive Income | Predecessor
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss before income taxes		80		2,545
Tax effect				1,027
Net loss attributable to Tidewater Inc.		80		1,518
Reclassification out of Accumulated Other Comprehensive Income | Predecessor | Available for Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income and other, net		$ 80		405
Reclassification out of Accumulated Other Comprehensive Income | Predecessor | Interest Rate Swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other debt costs				$ 2,140

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Schedule of Uncertain Tax Positions and Income Tax Payable (Detail) $ in Thousands	Jun. 30, 2018 USD ($)
Income Tax Disclosure [Abstract]
Tax liabilities for uncertain tax positions	$ 19,626
Income tax payable	8,995
Income tax receivable	$ 7,814

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Schedule of Unrecognized Tax Benefits Which Would Lower Effective Tax Rate if Realized (Detail) - State and Local Jurisdiction $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Income Tax Contingency [Line Items]
Unrecognized tax benefit related to state tax issues	$ 12,425
Interest receivable on unrecognized tax benefit related to state tax issues	$ 58

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Income Taxes - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Net deferred tax assets	$ 47,700,000	$ 43,200,000
Valuation allowance	$ 47,700,000	$ 43,200,000
Federal statutory tax rate	21.00%
Adjustments to provisional amounts recorded	$ 0
One-time transition tax, adjustments to provisional amounts recorded	0
Tax act, executive compensation, cap on deductibility, amount	$ 1,000,000
Tax act, interest expense limitation, minimum percentage of adjusted taxable income	30.00%
Estimate of interest expense limitation before consideration of valuation allowance	$ 7,500,000
Net impact in income loss	$ 0

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Employee Benefit Plans - Additional Information (Detail) kr in Millions	1 Months Ended	3 Months Ended				6 Months Ended
	May 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 NOK (kr)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 NOK (kr)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 NOK (kr)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 NOK (kr)
President, and Chief Executive Officer [Member] | Supplemental Executive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Settlement of distribution	$ 8,900,000
Settlement loss		$ 300,000
Pension Plans, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, employer contributions		0		$ 0		$ 0		$ 0
Supplemental Executive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, employer contributions		40,000		0		300,000		0
Expected contribution to the plan during the remaining quarters of fiscal 2018		700,000				700,000
Norway’s Defined Benefit Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, employer contributions		200,000	kr 1.9	$ 400,000	kr 3.0	200,000	kr 1.9	$ 400,000	kr 3.0
Expected contribution to the plan during the remaining quarters of fiscal 2018		$ 0				$ 0

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Schedule of Carrying Value of Trust Assets, Including Unrealized Gains or Losses (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Investments held in Rabbi Trust at fair value	[1]	$ 45	$ 8,908
Unrealized gains in fair value of trust assets			256
Obligations under the supplemental plan		$ 23,797	$ 32,508

[1] The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

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Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Pension Benefits
Net Period Benefit Cost Assumptions [Line Items]
Service cost	$ 41		$ 71
Interest cost	882		1,784
Expected return on plan assets	(482)		(964)
Administrative expenses	2		3
Settlement loss recognized	335		335
Net periodic pension cost	778		1,229
Pension Benefits | Predecessor
Net Period Benefit Cost Assumptions [Line Items]
Service cost		$ 294		$ 713
Interest cost		984		1,975
Expected return on plan assets		(518)		(1,119)
Administrative expenses		2		24
Payroll tax of net pension costs				56
Amortization of net actuarial losses				32
Recognized actuarial (benefit) loss		561		1,008
Net periodic pension cost		1,323		2,689
Other Benefits
Net Period Benefit Cost Assumptions [Line Items]
Service cost	15		30
Interest cost	29		58
Amortization of prior service cost	(75)		(150)
Recognized actuarial (benefit) loss	11		22
Net periodic pension cost	$ (20)		$ (40)
Other Benefits | Predecessor
Net Period Benefit Cost Assumptions [Line Items]
Service cost		17		38
Interest cost		48		99
Amortization of prior service cost		(695)		(1,783)
Recognized actuarial (benefit) loss		(252)		(535)
Net periodic pension cost		$ (882)		$ (2,181)

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Summary of Debt Outstanding (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Debt [Line Items]
Amount outstanding	[1]	$ 436,403	$ 438,827
Debt premiums and discounts, net		8,446	9,333
Less: Current portion of long-term debt		6,290	5,103
Total long-term debt		438,559	443,057
8.00% New Secured Notes Due August 2022
Debt [Line Items]
Secured notes	[2]	349,954	350,000
Norwegian Kroner Denominated Notes Due May 2024 | Troms Offshore Supply AS
Debt [Line Items]
Amount outstanding	[1]	13,595	14,054
Norwegian Kroner Denominated Notes Due January 2026 | Troms Offshore Supply AS
Debt [Line Items]
Amount outstanding	[1]	25,315	25,965
United States Dollar Denominated Notes Due January 2027 | Troms Offshore Supply AS
Debt [Line Items]
Amount outstanding	[1]	22,729	23,345
United States Dollar Denominated Notes Due April 2027 | Troms Offshore Supply AS
Debt [Line Items]
Amount outstanding	[1]	$ 24,810	$ 25,463

[1] The company pays principal and interest on these notes semi-annually. As of June 30, 2018 and December 31, 2017, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $86.4 million and $88.5 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of June 30, 2018, was 5.00%.

[2] As of June 30, 2018 and December 31, 2017, the fair value (Level 2) of the New Secured Notes was $361.5 million and $359.8 million, respectively.

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Summary of Debt Outstanding (Parenthetical) (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Troms Offshore Supply AS
Debt [Line Items]
Description of frequency of periodic payments on notes	semi-annually
Weighted average interest rate of debt borrowings	5.00%
Troms Offshore Supply AS | Level 2
Debt [Line Items]
Fair value of debt outstanding	$ 86.4	$ 88.5
8.00% New Secured Notes Due August 2022
Debt [Line Items]
Debt instrument interest rate	8.00%
Debt Instrument Maturity Period	August 2022
8.00% New Secured Notes Due August 2022 | Level 2
Debt [Line Items]
Fair value of debt outstanding	$ 361.5	$ 359.8
Norwegian Kroner Denominated Notes Due May 2024 | Troms Offshore Supply AS
Debt [Line Items]
Debt Instrument Maturity Period	May 2024
Norwegian Kroner Denominated Notes Due January 2026 | Troms Offshore Supply AS
Debt [Line Items]
Debt Instrument Maturity Period	January 2026
United States Dollar Denominated Notes Due January 2027 | Troms Offshore Supply AS
Debt [Line Items]
Debt Instrument Maturity Period	January 2027
United States Dollar Denominated Notes Due April 2027 | Troms Offshore Supply AS
Debt [Line Items]
Debt Instrument Maturity Period	April 2027

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Indebtedness - Additional Information (Detail) - USD ($)	Feb. 02, 2018	Jul. 31, 2017	Jun. 30, 2018	Mar. 07, 2018	Dec. 31, 2017
Debt [Line Items]
Restricted cash			$ 5,213,000		$ 21,300,000
Tendered Notes
Debt [Line Items]
Debt Instrument Face Amount				$ 46,023
Offer | Senior Secured Notes
Debt [Line Items]
Debt instrument fixed interest rate	8.00%
Debt instrument maturity year	2022
Predecessor | Offer
Debt [Line Items]
Debt instrument repurchase period		60 days
Percentage of proceeds from Asset Sales, net of commission paid		65.00%
Minimum | Predecessor | Offer
Debt [Line Items]
Net proceeds realized from asset sales exceed amount		$ 10,000,000
Maximum | Offer | Senior Secured Notes
Debt [Line Items]
Debt Instrument Face Amount	$ 24,700,000

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Debt Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt [Line Items]
Interest and debt costs incurred, net of interest capitalized	$ 7,547		$ 15,146
Interest costs capitalized	194		368
Total interest and debt costs	$ 7,741		$ 15,514
Predecessor
Debt [Line Items]
Interest and debt costs incurred, net of interest capitalized		$ 10,605		$ 31,613
Interest costs capitalized		601		1,818
Total interest and debt costs		$ 11,206		$ 33,431

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Components of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net loss available to common shareholders		$ (10,940)		$ (50,112)
Weighted average outstanding shares of common stock, basic	[1]	24,654,220		23,989,254
Weighted average shares of common stock and equivalents		24,654,220		23,989,254
Loss per share, basic	[2]	$ (0.44)		$ (2.09)
Loss per share, diluted	[3]	$ (0.44)		$ (2.09)
In-the-money Options, Warrants and Restricted Stock Awards and Units
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Incremental "in-the-money" options, warrants, and restricted stock awards and units at the end of the period	[4]	4,521,727		5,454,218
Predecessor
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net loss available to common shareholders			$ (524,434)		$ (619,289)
Weighted average outstanding shares of common stock, basic	[1]		47,121,304		47,101,155
Weighted average shares of common stock and equivalents			47,121,304		47,101,155
Loss per share, basic	[2]		$ (11.13)		$ (13.15)
Loss per share, diluted	[3]		$ (11.13)		$ (13.15)
Predecessor | In-the-money Options, Warrants and Restricted Stock Awards and Units
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Incremental "in-the-money" options, warrants, and restricted stock awards and units at the end of the period	[4]		183		183

[1] Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018, were 26,085,274, 3,924,441 and 30,009,715, respectively.

[2] The company calculates “Loss per share, basic” by dividing “Net loss available to common shareholders” by “Weighted average outstanding shares of common stock, basic”.

[3] The company calculates “Loss per share, diluted” by dividing “Net loss available to common shareholders” by “Weighted average common stock and equivalents”.

[4] For the six months ended June 30, 2018, the company also had 5,062,089 shares of “out-of- the-money” warrants outstanding at the end of the period.

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Components of Basic and Diluted Loss Per Share (Parenthetical) (Detail) - shares	Jun. 30, 2018	Dec. 31, 2017
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Common shares outstanding	26,085,274	22,115,916
Warrants outstanding	3,924,441
Common shares and new creditor warrants outstanding	30,009,715
Out-of-the-money Warrants
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Warrants outstanding	5,062,089

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Related Party Balances - Schedule of Balances with Related Parties (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Due to related parties:
Due from related parties, net of due to related parties	$ 134,706	$ 154,575
Sonatide | ANGOLA
Due from related parties:
Total due from related parties	152,826	230,315
Due to related parties:
Total due to related parties	46,742	99,448
DTDW | NIGERIA
Due from related parties:
Total due from related parties	44,233	33,353
Due to related parties:
Total due to related parties	$ 15,611	$ 9,645

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Related Party Balances - Additional Information (Detail) - DTDW - NIGERIA - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Due from related party	$ 44,233	$ 33,353
Due to related party	$ 15,611	9,645
Trade and Other Receivables, Net
Related Party Transaction [Line Items]
Due from related party		33,400
Accounts Payable
Related Party Transaction [Line Items]
Due to related party		$ 9,600

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Commitments and Contingencies - Additional Information (Detail) - Vessel Commitments $ in Millions	Jun. 30, 2018 USD ($) Vessel T
Significant Purchase and Supply Commitment [Line Items]
Remaining Balance, commitments | $	$ 2.3
Number of Vessels, commitments | Vessel	1
Significant commitment, new construction deadweight tons capacity | T	5,400

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Commitments and Contingencies (Sonatide Joint Venture) - Additional Information (Detail)		3 Months Ended	6 Months Ended
		Jun. 30, 2018 USD ($) Vessel Kz / $	Jun. 30, 2018 USD ($) Vessel Kz / $	Jun. 30, 2017 USD ($) Vessel	Dec. 31, 2017 USD ($) Kz / $	Jun. 30, 2014 Vessel
Commitments and Contingencies Disclosure [Line Items]
Due from affiliates		$ 197,059,000	$ 197,059,000		$ 230,315,000
Cash and cash equivalents		459,286,000	459,286,000		432,035,000
Due to affiliates		62,353,000	62,353,000		99,448,000
Commissions payable	[1]	2,488,000	2,488,000		1,898,000
Total revenues		105,601,000	197,094,000
Investments in, at equity, and advances to unconsolidated companies		$ 1,335,000	1,335,000		$ 29,216,000
Dividend received in excess of investment			$ 4,900,000
Devaluation Of Angolan kwanza Versus US Dollar
Commitments and Contingencies Disclosure [Line Items]
Foreign currency exchange rate | Kz / $		250	250		168
Percentage of devaluation of currency			49.00%
Percentage of foreign exchange loss recognized			49.00%
Estimated exchange loss			$ 20,600,000
Vessel Revenues
Commitments and Contingencies Disclosure [Line Items]
Total revenues		$ 104,174,000	$ 191,668,000
ANGOLA
Commitments and Contingencies Disclosure [Line Items]
Number of vessels operating | Vessel		37	37			84
Decrease in number of vessels operating | Vessel		47	47
Decrease in number of active vessels | Vessel		58	58
Number of active vessels | Vessel		22	22			80
Sonatide joint venture
Commitments and Contingencies Disclosure [Line Items]
Due from affiliates		$ 153,000,000	$ 153,000,000		$ 230,000,000
Unpaid vessel revenue		25,000,000	25,000,000
Due to affiliates		47,000,000	47,000,000		99,000,000
Commissions payable		$ 30,200,000	30,200,000		36,400,000
Due from affiliates and due to affiliates			$ 55,000,000
Number of vessels operating | Vessel		7	7
Number of vessels stacked | Vessel		5	5
Ownership Interest In Joint Venture		49.00%	49.00%
Investments in, at equity, and advances to unconsolidated companies		$ 0	$ 0		$ 27,000,000
Dividend received			12,300,000
Sonatide joint venture | ANGOLA
Commitments and Contingencies Disclosure [Line Items]
Proceeds from related party			$ 51,000,000
Percentage of Angolan operation revenue			15.00%	20.00%
Number of vessels operating | Vessel		38	38	53
Number of vessels stacked | Vessel		17	17	23
Number of vessels transferred out of Angola | Vessel			8
Sonatide joint venture | ANGOLA | Vessel Revenues
Commitments and Contingencies Disclosure [Line Items]
Total revenues			$ 29,000,000	$ 53,000,000
Sonatide joint venture | U.S. dollars initially received by Sonatide on behalf of the company or dollars collected from other customers
Commitments and Contingencies Disclosure [Line Items]
Proceeds from related party			47,000,000
Sonatide joint venture | Sonatide's converting kwanzas into dollars and subsequent payment to company
Commitments and Contingencies Disclosure [Line Items]
Proceeds from related party			4,000,000
Sonatide joint venture | Angolan kwanza-denominated
Commitments and Contingencies Disclosure [Line Items]
Bank deposits maintained		$ 67,000,000	67,000,000
Cash and cash equivalents		$ 43,000,000	$ 43,000,000

[1] Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

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Commitments and Contingencies (Brazilian Customs) - Additional Information (Detail) R$ in Millions, $ in Millions	1 Months Ended	6 Months Ended
	May 31, 2016 BRL (R$)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 BRL (R$)	Apr. 30, 2011 BRL (R$)
Commitments And Contingencies Disclosure [Abstract]
Fines assessed		$ 8.5		R$ 33.0
Fines assessed	R$ 3.0	0.8
Deposit Amount		1.5	R$ 6.0
Remaining amount of fines contested		$ 7.7	R$ 30.0

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Commitment and Contingencies (Repairs to U.S. Flagged Vessels Operating Abroad) - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Percentage of vessel repair duty	50.00%

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Commitment and Contingencies (Arbitral Award for the Taking of the Company's Venezuelan Operations) - Additional Information (Detail) - Compensatory Purposes - VENEZUELA $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) Subsidiary
Commitments and Contingencies Disclosure [Line Items]
Number of subsidiaries awarded grant | Subsidiary	2
Compensation awarded to the claimants	$ 56.9
Litigation settlement accrual interest	$ 0.6

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Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of plan assets	[1]	$ 45	$ 8,908
Supplemental Executive Retirement Plan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			8,909
Other pending transactions			(1)
Total fair value of plan assets		45	8,908
Supplemental Executive Retirement Plan | Measured At Net Asset Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			1,725
Total fair value of plan assets		45	1,725
Supplemental Executive Retirement Plan | Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			6,173
Other pending transactions			(1)
Total fair value of plan assets			6,172
Supplemental Executive Retirement Plan | Significant Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			1,011
Total fair value of plan assets			1,011
Supplemental Executive Retirement Plan | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets		45	246
Supplemental Executive Retirement Plan | Cash and Cash Equivalents | Measured At Net Asset Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets		$ 45	49
Supplemental Executive Retirement Plan | Cash and Cash Equivalents | Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			27
Supplemental Executive Retirement Plan | Cash and Cash Equivalents | Significant Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			170
Supplemental Executive Retirement Plan | Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			5,295
Supplemental Executive Retirement Plan | Equity Securities | Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			5,295
Supplemental Executive Retirement Plan | Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			3,368
Supplemental Executive Retirement Plan | Debt Securities | Measured At Net Asset Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			1,676
Supplemental Executive Retirement Plan | Debt Securities | Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			851
Supplemental Executive Retirement Plan | Debt Securities | Significant Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of plan assets			$ 841

[1] The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

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Fair Value Measurements - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Cash equivalents maturity period, days	90 days

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Schedule of Fair Value Other Financial Instruments Measured (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 423,131	$ 399,322
Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	423,131	399,322
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	423,131	399,322
Cash Equivalents | Quoted Prices In Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of assets	$ 423,131	$ 399,322

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Schedule of Other Current Assets (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Other Current Assets, Properties and Equipment, Other Assets Accrued Expenses Other Current Liabilities and other Non current liabilities and Deferred Credits [Abstract]
Deposits		$ 2,151	$ 1,780
Investments held in rabbi trust	[1]	45	8,908
Prepaid expenses		8,017	8,442
Total other current assets		$ 10,213	$ 19,130

[1] The company converted substantially all investments held in the rabbi trust to cash to fund a lump sum benefit to the former CEO in May 2018. Refer to Note (6) for more information regarding this payment.

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Summary of Net Properties and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property Plant And Equipment [Abstract]
Vessels and related equipment	$ 836,773	$ 850,268
Other properties and equipment	5,481	5,710
Properties and equipment, gross	842,254	855,978
Less accumulated depreciation and amortization	38,529	18,458
Net properties and equipment	$ 803,725	$ 837,520

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Schedule of Other Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Assets, Noncurrent [Abstract]
Recoverable insurance losses	$ 2,585	$ 2,405
Investments held for supplemental savings plan accounts	5,274	6,583
Long-term deposits	13,763	16,217
Other	5,157	5,847
Total other assets	$ 26,779	$ 31,052

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Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities Current [Abstract]
Payroll and related payables	[1]	$ 9,004	$ 17,344
Commissions payable	[2]	2,488	1,898
Accrued vessel expenses		28,701	27,222
Accrued interest expense		5,958	6,036
Other accrued expenses		3,161	2,306
Accrued expenses		$ 49,312	$ 54,806

[1] The balance at December 31, 2017 includes $8.9 million payable to the former CEO, which was paid in May 2018.

[2] Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

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Schedule of Accrued Expenses (Parenthetical) (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Schedule of Accrued Liabilities [Line Items]
Payroll and related payables	[1]	$ 9,004	$ 17,344
Commissions payable	[2]	2,488	1,898
Sonatide joint venture
Schedule of Accrued Liabilities [Line Items]
Commissions payable		$ 30,200	36,400
Former CEO
Schedule of Accrued Liabilities [Line Items]
Payroll and related payables			$ 8,900

[1] The balance at December 31, 2017 includes $8.9 million payable to the former CEO, which was paid in May 2018.

[2] Excludes $30.2 million and $36.4 million of commissions due to Sonatide at June 30, 2018 and December 31, 2017,

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Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Current [Abstract]
Taxes payable	$ 15,988	$ 10,326
Amounts payable to holders of General Unsecured Claims		8,474
Other	1,827	893
Other current liabilities	$ 17,815	$ 19,693

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Schedule of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred Credits and Other Liabilities [Abstract]
Postretirement benefits liability	$ 2,420	$ 2,642
Pension liabilities	36,526	36,614
Deferred supplemental savings plan liability	5,277	6,592
Other	13,462	12,728
Other liabilities and deferred credits	$ 57,685	$ 58,576

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Segment Information, Geographical Data and Major Customers (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total revenues		$ 105,601		$ 197,094
Operating profit (loss)		7,647		6,504
General and administrative expenses		(24,425)		(47,990)
Depreciation and amortization		12,785		24,802
Corporate expenses		(7,910)		(14,694)
Gain on asset dispositions, net		1,338		3,257
Asset impairments	[1]	(1,215)		(7,401)
Operating loss		(140)		(12,334)
Foreign exchange loss		(1,002)		(1,350)
Equity in net earnings (losses) of unconsolidated companies		390		(15,049)
Interest income and other, net		2,914		2,786
Interest and other debt costs, net		(7,547)		(15,146)
Loss before income taxes		(5,385)		(41,093)
Additions to properties and equipment		4,097		5,775
All Other Segments
Segment Reporting Information [Line Items]
Operating profit (loss)		778		2,284
Depreciation and amortization		5		10
Operating Segments
Segment Reporting Information [Line Items]
Operating profit (loss)		6,869		4,220
Depreciation and amortization		12,680		24,592
Additions to properties and equipment		2,438		3,899
Operating Segments | Americas
Segment Reporting Information [Line Items]
Operating profit (loss)		5,681		10,592
Depreciation and amortization		3,530		6,843
Additions to properties and equipment		1,230		2,267
Operating Segments | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Operating profit (loss)		625		(1,628)
Depreciation and amortization		2,844		5,613
Additions to properties and equipment		1,073		1,496
Operating Segments | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Operating profit (loss)		(1,142)		(4,696)
Depreciation and amortization		2,239		4,043
Additions to properties and equipment		135		135
Operating Segments | West Africa
Segment Reporting Information [Line Items]
Operating profit (loss)		1,705		(48)
Depreciation and amortization		4,067		8,093
Additions to properties and equipment				1
Corporate
Segment Reporting Information [Line Items]
General and administrative expenses		(7,810)		(14,494)
Depreciation and amortization		100		200
Additions to properties and equipment	[2]	1,659		1,876
Vessel Revenues
Segment Reporting Information [Line Items]
Total revenues		104,174		191,668
Vessel Revenues | Americas
Segment Reporting Information [Line Items]
Total revenues		32,601		58,682
Vessel Revenues | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues		22,406		40,794
Vessel Revenues | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues		13,357		22,980
Vessel Revenues | West Africa
Segment Reporting Information [Line Items]
Total revenues		35,810		69,212
Vessel Revenues | Operating Segments | Americas
Segment Reporting Information [Line Items]
Total revenues		32,601		58,682
Vessel Revenues | Operating Segments | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues		22,406		40,794
Vessel Revenues | Operating Segments | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues		13,357		22,980
Vessel Revenues | Operating Segments | West Africa
Segment Reporting Information [Line Items]
Total revenues		35,810		69,212
Other Operating Revenues
Segment Reporting Information [Line Items]
Total revenues	[3]	$ 1,427		$ 5,426
Predecessor
Segment Reporting Information [Line Items]
Total revenues			$ 115,106		$ 275,855
Operating profit (loss)			(29,897)		(18,123)
General and administrative expenses			(33,059)		(74,786)
Depreciation and amortization			36,287		73,879
Corporate expenses			(15,243)		(37,564)
Gain on asset dispositions, net			3,189		9,253
Asset impairments	[1]		(163,423)		(228,280)
Operating loss			(205,374)		(274,714)
Foreign exchange loss			(1,157)		(493)
Equity in net earnings (losses) of unconsolidated companies			4,517		7,358
Interest income and other, net			1,680		3,268
Reorganization items			(313,176)		(313,176)
Interest and other debt costs, net			(10,605)		(31,613)
Loss before income taxes			(524,115)		(609,370)
Additions to properties and equipment			1,627		9,700
Predecessor | All Other Segments
Segment Reporting Information [Line Items]
Operating profit (loss)			55		(170)
Depreciation and amortization			854		1,709
Predecessor | Operating Segments
Segment Reporting Information [Line Items]
Operating profit (loss)			(29,952)		(17,953)
Depreciation and amortization			34,892		71,065
Additions to properties and equipment			949		2,068
Predecessor | Operating Segments | Americas
Segment Reporting Information [Line Items]
Operating profit (loss)			(15,699)		14,919
Depreciation and amortization			10,748		22,045
Additions to properties and equipment			27		27
Predecessor | Operating Segments | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Operating profit (loss)			(1,316)		(7,480)
Depreciation and amortization			7,746		16,245
Additions to properties and equipment			648		1,673
Predecessor | Operating Segments | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Operating profit (loss)			(10,163)		(17,265)
Depreciation and amortization			6,803		13,364
Predecessor | Operating Segments | West Africa
Segment Reporting Information [Line Items]
Operating profit (loss)			(2,774)		(8,127)
Depreciation and amortization			9,595		19,411
Additions to properties and equipment			274		368
Predecessor | Corporate
Segment Reporting Information [Line Items]
General and administrative expenses			(14,702)		(36,459)
Depreciation and amortization			541		1,105
Additions to properties and equipment	[2]		678		7,632
Predecessor | Vessel Revenues
Segment Reporting Information [Line Items]
Total revenues			112,257		269,162
Predecessor | Vessel Revenues | Americas
Segment Reporting Information [Line Items]
Total revenues			31,887		112,420
Predecessor | Vessel Revenues | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues			27,766		54,444
Predecessor | Vessel Revenues | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues			11,031		21,197
Predecessor | Vessel Revenues | West Africa
Segment Reporting Information [Line Items]
Total revenues			41,573		81,101
Predecessor | Vessel Revenues | Operating Segments | Americas
Segment Reporting Information [Line Items]
Total revenues			31,887		112,420
Predecessor | Vessel Revenues | Operating Segments | Middle East/Asia Pacific
Segment Reporting Information [Line Items]
Total revenues			27,766		54,444
Predecessor | Vessel Revenues | Operating Segments | Europe/Mediterranean Sea
Segment Reporting Information [Line Items]
Total revenues			11,031		21,197
Predecessor | Vessel Revenues | Operating Segments | West Africa
Segment Reporting Information [Line Items]
Total revenues			41,573		81,101
Predecessor | Other Operating Revenues
Segment Reporting Information [Line Items]
Total revenues	[3]		$ 2,849		$ 6,693

[1] Refer to Note (14) for additional information regarding asset impairment.

[2] Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not yet been assigned to a non-corporate reporting segment as of the dates presented.

[3] Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

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Segment Information, Geographical Data and Major Customers (Parenthetical) (Detail) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 Vessel
Segment Reporting Information [Line Items]
Other operating revenues		$ 105,601		$ 197,094
Number of ROVs disposed | Vessel						8
Other Operating Revenues
Segment Reporting Information [Line Items]
Other operating revenues	[1]	$ 1,427		$ 5,426
Other Operating Revenues | Subsea Business
Segment Reporting Information [Line Items]
Other operating revenues			$ 500		$ 800

[1] Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 million, respectively, of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

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Comparison of Total Assets (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Segment and Geographic Distribution of Operations [Line Items]
Assets		$ 1,643,542	$ 1,746,180
Assets excluding equity investments		1,179,617	1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,335	29,216
Assets except corporate portion		1,180,953	1,280,341
All Other Segments
Segment and Geographic Distribution of Operations [Line Items]
Assets		363	2,443
Operating Segments
Segment and Geographic Distribution of Operations [Line Items]
Assets	[1]	1,179,254	1,248,682
Operating Segments | Americas
Segment and Geographic Distribution of Operations [Line Items]
Assets	[1],[2]	310,121	164,958
Operating Segments | Middle East/Asia Pacific
Segment and Geographic Distribution of Operations [Line Items]
Assets	[1]	215,105	48,268
Operating Segments | Europe/Mediterranean Sea
Segment and Geographic Distribution of Operations [Line Items]
Assets	[1]	167,695	171,157
Operating Segments | West Africa
Segment and Geographic Distribution of Operations [Line Items]
Assets	[3]	486,333	864,299
Corporate
Segment and Geographic Distribution of Operations [Line Items]
Assets	[4]	$ 462,589	$ 465,839

[1] The company’s segment level assets as of June 30, 2018, reflect the elimination of certain intersegment balances.

[2] Americas segment assets include cash held by non-corporate subsidiaries of $94.6 million and 95.1 million, as of June 30, 2018 and December 31, 2017, respectively.

[3] West Africa segment assets include due from related parties of $197.1 million and $263.7 million as of June 30, 2018 and December 31, 2017, respectively.

[4] Corporate includes cash (including restricted cash) of $353.2 million and $336.4 million as of June 30, 2018 and December 31. 2017, respectively. Also included in Corporate is a vessel under construction which has not yet been assigned to a non-corporate reporting segment. A vessel’s construction costs are reported in Corporate until the earlier of the date the vessel is assigned to a non-corporate reporting segment or the date it is delivered. At June 30, 2018 and December 31, 2017, $11.2 million and $9.3 million, respectively, of vessel construction costs are included in Corporate.

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Comparison of Total Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Segment and Geographic Distribution of Operations [Line Items]
Cash held by non-corporate subsidiaries	$ 197,059	$ 230,315
Cash including restricted cash	5,213	21,300
Corporate
Segment and Geographic Distribution of Operations [Line Items]
Cash including restricted cash	353,200	336,400
Corporate Vessels
Segment and Geographic Distribution of Operations [Line Items]
Construction costs	11,200	9,300
Americas
Segment and Geographic Distribution of Operations [Line Items]
Cash held by non-corporate subsidiaries	94,600	95,100
West Africa
Segment and Geographic Distribution of Operations [Line Items]
Due from related parties	$ 197,100	$ 263,700

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Schedule of Segment Reporting Information, Revenue by Vessel Class (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 105,601		$ 197,094
Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 115,106		$ 275,855
Americas Fleet Deepwater vessels
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 22,661		$ 38,866
Percentage of Angolan operation revenue	22.00%		20.00%
Americas Fleet Deepwater vessels | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 17,313		$ 80,144
Percentage of Angolan operation revenue		15.00%		30.00%
Americas Fleet Towing-Supply/supply
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 7,560		$ 14,406
Percentage of Angolan operation revenue	7.00%		8.00%
Americas Fleet Towing-Supply/supply | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 11,274		$ 26,012
Percentage of Angolan operation revenue		10.00%		10.00%
Americas Fleet Other
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 2,380		$ 5,410
Percentage of Angolan operation revenue	2.00%		3.00%
Americas Fleet Other | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 3,300		$ 6,264
Percentage of Angolan operation revenue		3.00%		2.00%
Americas Fleet
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 32,601		$ 58,682
Percentage of Angolan operation revenue	31.00%		31.00%
Americas Fleet | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 31,887		$ 112,420
Percentage of Angolan operation revenue		28.00%		42.00%
Middle East/Asia Pacific Fleet Deepwater vessels
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 9,603		$ 19,167
Percentage of Angolan operation revenue	9.00%		10.00%
Middle East/Asia Pacific Fleet Deepwater vessels | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 10,701		$ 20,134
Percentage of Angolan operation revenue		10.00%		7.00%
Middle East/Asia Pacific Fleet Towing-Supply/supply
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 12,783		$ 21,607
Percentage of Angolan operation revenue	12.00%		11.00%
Middle East/Asia Pacific Fleet Towing-Supply/supply | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 17,065		$ 34,310
Percentage of Angolan operation revenue		15.00%		13.00%
Middle East/Asia Pacific Fleet Other
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 20		$ 20
Middle East/Asia Pacific Fleet Other | Maximum
Segment and Geographic Distribution of Operations [Line Items]
Percentage of Angolan operation revenue	1.00%		1.00%
Middle East/Asia Pacific Fleet
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 22,406		$ 40,794
Percentage of Angolan operation revenue	21.00%		21.00%
Middle East/Asia Pacific Fleet | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 27,766		$ 54,444
Percentage of Angolan operation revenue		25.00%		20.00%
Europe/Mediterranean Sea fleet Deepwater vessels
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 12,596		$ 21,616
Percentage of Angolan operation revenue	12.00%		11.00%
Europe/Mediterranean Sea fleet Deepwater vessels | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 8,237		$ 18,090
Percentage of Angolan operation revenue		8.00%		7.00%
Europe/Mediterranean Sea fleet Towing-Supply/supply
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 761		$ 1,364
Percentage of Angolan operation revenue	1.00%		1.00%
Europe/Mediterranean Sea fleet Towing-Supply/supply | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 2,794		$ 3,116
Percentage of Angolan operation revenue		2.00%		1.00%
Europe/Mediterranean Sea fleet Other | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues				$ (9)
Europe/Mediterranean Sea fleet Other | Predecessor | Maximum
Segment and Geographic Distribution of Operations [Line Items]
Percentage of Angolan operation revenue				1.00%
Europe/Mediterranean Sea fleet
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 13,357		$ 22,980
Percentage of Angolan operation revenue	13.00%		12.00%
Europe/Mediterranean Sea fleet | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 11,031		$ 21,197
Percentage of Angolan operation revenue		10.00%		8.00%
West Africa fleet Deepwater vessels
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 14,314		$ 28,252
Percentage of Angolan operation revenue	14.00%		15.00%
West Africa fleet Deepwater vessels | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 13,921		$ 27,100
Percentage of Angolan operation revenue		12.00%		10.00%
West Africa fleet Towing-Supply/supply
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 17,321		$ 33,460
Percentage of Angolan operation revenue	17.00%		17.00%
West Africa fleet Towing-Supply/supply | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 24,225		$ 46,697
Percentage of Angolan operation revenue		22.00%		17.00%
West Africa fleet Other
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 4,175		$ 7,500
Percentage of Angolan operation revenue	4.00%		4.00%
West Africa fleet Other | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 3,427		$ 7,304
Percentage of Angolan operation revenue		3.00%		3.00%
West Africa fleet
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 35,810		$ 69,212
Percentage of Angolan operation revenue	35.00%		36.00%
West Africa fleet | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 41,573		$ 81,101
Percentage of Angolan operation revenue		37.00%		30.00%
Worldwide Fleet Deepwater vessels
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 59,174		$ 107,901
Percentage of Angolan operation revenue	57.00%		56.00%
Worldwide Fleet Deepwater vessels | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 50,172		$ 145,468
Percentage of Angolan operation revenue		45.00%		54.00%
Worldwide Fleet Towing-Supply/supply
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 38,425		$ 70,837
Percentage of Angolan operation revenue	37.00%		37.00%
Worldwide Fleet Towing-Supply/supply | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 55,358		$ 110,135
Percentage of Angolan operation revenue		49.00%		41.00%
Worldwide Fleet Other
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 6,575		$ 12,930
Percentage of Angolan operation revenue	6.00%		7.00%
Worldwide Fleet Other | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 6,727		$ 13,559
Percentage of Angolan operation revenue		6.00%		5.00%
Worldwide Fleet
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues	$ 104,174		$ 191,668
Percentage of Angolan operation revenue	100.00%		100.00%
Worldwide Fleet | Predecessor
Segment and Geographic Distribution of Operations [Line Items]
Vessel revenues		$ 112,257		$ 269,162
Percentage of Angolan operation revenue		100.00%		100.00%

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Summary of Vessels Impaired and Amount of Impairment Incurred (Detail) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018 USD ($) Vessel	Jun. 30, 2017 USD ($) Vessel	Jun. 30, 2018 USD ($) Vessel	Jun. 30, 2017 USD ($) Vessel
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period | Vessel	[1]	2		15
Amount of impairment incurred | $	[2]	$ 1,215		$ 7,401
Predecessor
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period | Vessel	[1]		77		89
Amount of impairment incurred | $	[2]		$ 163,423		$ 228,280

[1] For the quarter and six months periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively and for the six month period ended June 30, 2017 there were 83 stacked vessels and 6 active vessels impaired, respectively.

[2] Refer to Note (14) for additional information regarding asset impairment.

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Summary of Vessels Impaired and Amount of Impairment Incurred (Parenthetical) (Detail) - Vessel		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period	[1]	2		15
Stacked Vessels
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period		2		15
Predecessor
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period	[1]		77		89
Predecessor | Stacked Vessels
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period			72		83
Predecessor | Active Vessels
Schedule of Vessels Impaired and Amount of Impairment Incurred [Line Items]
Number of vessels impaired in the period			5		6

[1] For the quarter and six months periods ended June 30, 2018, there were 2 and 15 stacked vessels impaired, respectively. For the quarter ended June 30, 2017, there were 72 stacked vessels and 5 active vessels impaired, respectively and for the six month period ended June 30, 2017 there were 83 stacked vessels and 6 active vessels impaired, respectively.

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Subsequent Event - Additional Information (Details) - Subsequent Event - USD ($) $ in Millions	Jul. 15, 2018	Aug. 06, 2018
Subsequent Event [Line Items]
Ownership percentage	74.00%
Fee payable on termination	$ 35.0
GulfMark
Subsequent Event [Line Items]
Shares received upon conversion	1.1
Shares received upon warrant coversion	1.1
Ownership percentage	26.00%	41.20%
Fee payable on termination	$ 13.0