SEGMENT INFORMATION, GEOGRAPHICAL DATA AND MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2018

SEGMENT INFORMATION, GEOGRAPHICAL DATA AND MAJOR CUSTOMERS

(18)SEGMENT INFORMATION, GEOGRAPHICAL DATA AND MAJOR CUSTOMERS

Operating business segments are defined as a component of an enterprise for which separate financial information is available and is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

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

The following table provides a comparison of revenues, vessel operating profit, depreciation and amortization, and additions to properties and equipment. Vessel revenues and operating costs relate to our owned and operated vessels while other operating revenues relate to the activities of our brokered vessels and other miscellaneous marine-related businesses.

	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017			Twelve Months
	Ended			through			through			Ended
(In thousands)	December 31, 2018			December 31, 2017			July 31, 2017			March 31, 2017
Revenues:
Vessel revenues:
Americas	$	118,534			45,784			40,848			239,843
Middle East/Asia Pacific		80,195			39,845			36,313			114,618
Europe/Mediterranean Sea		56,263			19,895			15,466			42,667
West Africa		142,214			66,360			53,970			186,688
		397,206			171,884			146,597			583,816
Other operating revenues		9,314			6,869			4,772			17,795
	$	406,520			178,753			151,369			601,611
Vessel operating profit (loss):
Americas	$	8,860			(1,599	)		(22,549	)		18,873
Middle East/Asia Pacific		(4,417	)		451			(1,434	)		(25,310	)
Europe/Mediterranean Sea		(9,359	)		(1,497	)		(12,680	)		(26,733	)
West Africa		7,240			2,308			(8,828	)		(24,662	)
		2,324			(337	)		(45,491	)		(57,832	)
Other operating profit (loss)		3,742			1,614			876			(1,548	)
		6,066			1,277			(44,615	)		(59,380	)

Corporate expenses		(42,972	)		(14,989	)		(18,246	)		(57,845	)

Gain on asset dispositions, net		10,624			6,616			3,561			24,099
Impairment of due from affiliate		(20,083	)
Asset impairments		(61,132	)		(16,777	)		(184,748	)		(484,727	)
Operating loss		(107,497	)		(23,873	)		(244,048	)		(577,853	)
Foreign exchange gain (loss)		106			(407	)		(3,181	)		(1,638	)
Equity in net earnings (losses) of unconsolidated companies		(18,864	)		2,130			4,786			5,710
Interest income and other, net		11,294			2,771			2,384			5,193
Reorganization items		—			(4,299	)		(1,396,905	)		—
Loss on debt extinguishment		(8,119	)		—			—			—
Interest and other debt costs		(30,439	)		(13,009	)		(11,179	)		(75,026	)
Loss before income taxes	$	(153,519	)		(36,687	)		(1,648,143	)		(643,614	)
Depreciation and amortization:
Americas	$	16,047			5,767			13,945			48,814
Middle East/Asia Pacific		11,871			4,716			9,967			40,849
Europe/Mediterranean Sea		11,385			2,794			9,060			26,538
West Africa		16,612			6,067			12,632			44,204
Other		21			827			1,139			4,430
Corporate		2,357			166			704			2,456
	$	58,293			20,337			47,447			167,291
Additions to properties and equipment:
Americas	$	3,771			144			27			93
Middle East/Asia Pacific		2,982			2,596			1,042			1,612
Europe/Mediterranean Sea		185			—			—			—
West Africa		10,135			195			375			743
Corporate		4,318			6,899			821			28,099
	$	21,391			9,834			2,265			30,547
Total assets (B):
Americas	$	380,168			164,958			714,891			779,778
Middle East/Asia Pacific		233,611			48,268			424,896			583,385
Europe/Mediterranean Sea		316,524			171,156			597,819			588,519
West Africa		483,234			864,300			1,277,552			1,308,836
Other		7,440			2,443			20,392			21,580
Investments in and advances to unconsolidated companies		1,039			29,216			49,367			45,115
Corporate (C)		405,723			479,254			799,752			863,486
	$	1,827,739			1,759,595			3,884,669			4,190,699

(A)

Included in corporate expenses for the twelve months ended December 31, 2018 were $13.2 million of merger and integration costs related to the merger with GulfMark Offshore, Inc. Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 are included in reorganization items. Included in corporate general and administrative expenses for the period four month period April 1, 2017 through July 31, 2017 (Predecessor) and year ended March 31, 2017 (Predecessor) were $6.7 million and $29 million of restructuring-related professional service costs, respectively.

(B)

Marine support services are conducted worldwide with assets that are highly mobile. Revenues are principally derived from offshore service vessels, which regularly and routinely move from one operating area to another, often to and from offshore operating areas in different continents. Because of this asset mobility, revenues and long-lived assets attributable to our international marine operations in any one country are not material.

(C)

Included in Corporate are vessels currently under construction which had not yet been assigned to a non-corporate reporting segment. The vessel construction costs will be reported in Corporate until the earlier of the vessels being assigned to a non-corporate reporting segment or the vessels’ delivery. There were no vessels under construction at December 31, 2018. At December 31, 2017 (Successor), July 31, 2017 (Predecessor) and March 31, 2017 (Predecessor), was $9.3 million, $47.5 million and $52.4 million, respectively, of vessel construction costs were included in Corporate.

The following table discloses the amount of revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue:

	Successor											Predecessor
							Period from					Period from
	Twelve Months						August 1, 2017					April 1, 2017					Twelve Months
	Ended						through					through					Ended
	December 31, 2018						December 31, 2017					July 31, 2017					March 31, 2017
Revenue by vessel class: (In thousands):				% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue
Americas fleet:
Deepwater	$	79,791			20	%		26,860		16	%		21,617		15	%		171,334		29	%
Towing-supply		29,107			7	%		13,835		8	%		15,021		10	%		56,561		10	%
Other		9,636			2	%		5,089		3	%		4,210		3	%		11,948		2	%
Total	$	118,534			30	%		45,784		27	%		40,848		28	%		239,843		41	%
Middle East/Asia Pacific fleet:
Deepwater	$	35,479			9	%		14,792		9	%		13,368		9	%		35,526		6	%
Towing-supply		44,722			10	%		25,053		14	%		22,945		16	%		79,092		13	%
Other		(6	)		—			—		—			—		—			—		—
Total	$	80,195			20	%		39,845		23	%		36,313		25	%		114,618		19	%
Europe/Mediterranean Sea fleet:
Deepwater	$	53,134			12	%		18,204		10	%		11,620		8	%		39,492		7	%
Towing-supply		3,129			1	%		1,691		1	%		3,846		3	%		2,659		1	%
Other		—			—			—		—			—		—			516	<1%
Total	$	56,263			13	%		19,895		11	%		15,466		11	%		42,667		8	%
West Africa fleet:
Deepwater	$	58,641			14	%		24,131		13	%		18,126		12	%		62,882		11	%
Towing-supply		68,072			17	%		33,806		20	%		31,297		21	%		100,073		17	%
Other		15,501			4	%		8,423		5	%		4,547		3	%		23,733		4	%
Total	$	142,214			36	%		66,360		39	%		53,970		36	%		186,688		32	%
Worldwide fleet:
Deepwater	$	227,045			57	%		83,987		49	%		64,731		44	%		309,234		53	%
Towing-supply		145,030			37	%		74,385		43	%		73,109		50	%		238,385		41	%
Other		25,131			6	%		13,512		8	%		8,757		6	%		36,197		6	%
Total	$	397,206			100	%		171,884		100	%		146,597		100	%		583,816		100	%

The following table discloses our customers that accounted for 10% or more of total revenues:

	Successor						Predecessor
				Period from			Period from
	Twelve Months			August 1, 2017			April 1, 2017			Twelve Months
	Ended			through			through			Ended
	December 31, 2018			December 31, 2017			July 31, 2017			March 31, 2017
Chevron Corporation		15.0	%		17.4	%		17.5	%		16.3	%
Freeport McMoRan (A)		—			—			—			11.3	%
Saudi Aramco		8.3	%		10.1	%		11.7	%		10.0	%

(A)

A significant portion of this customer’s year ended March 31, 2017 revenue was the result of the early termination of a long-term vessel charter contract.