(12)

GOODWILL

The company tests goodwill for impairment annually at the reporting unit level using carrying amounts as of December 31 or more frequently if events and circumstances indicate that goodwill might be impaired.

The company performed its most recent annual goodwill impairment assessment during the quarter ended December 31, 2013 and determined that the carrying value of its Asia/Pacific unit exceeded its fair value as a result of the general decline in the level of business and, therefore, expected future cash flow for the company in this region. The Asia/Pacific region continues to be challenged with an excess capacity of vessels as a result of the significant number of vessels that have been built in this region over the past 10 years, without a commensurate increase in working rig count within the region. In recent years, the company has both disposed of older vessels that previously worked in the region and transferred vessels out of the region to other regions where market opportunities are currently more robust. In accordance with ASC 350 goodwill is not reallocated based on vessel movements. A goodwill impairment charge of $56.3 million was recorded during the quarter ended December 31, 2013.

During the first quarter of fiscal 2014, $42.2 million of goodwill related to the acquisition of Troms Offshore was allocated to the Sub-Saharan Africa/Europe segment.

Goodwill by reportable segment at June 30, 2014 and 2013 is as follows:


(In thousands)	March 31, 2014		Goodwill acquired		Impairments		June 30, 2014
Americas	$	114,237		---		---		114,237
Sub-Saharan Africa/Europe		169,462		---		---		169,462
Total carrying amount (A)	$	283,699		---		---		283,699


(In thousands)	March 31, 2013		Goodwill acquired		Impairments		June 30, 2013
Americas	$	114,237		---		---		114,237
Asia/Pacific		56,283		---		---		56,283
Sub-Saharan Africa/Europe		127,302		42,160		---		169,462
Total carrying amount (B)	$	297,822		42,160		---		339,982

(A)

The total carrying amount of goodwill at June 30, 2014 is net of accumulated impairment charges $30.9 million and $56.3 million related to the Middle East/North Africa and Asia/Pacific segments, respectively.

(B)

The total carrying amount of goodwill at June 30, 2013 is net of accumulated impairment charges $30.9 million related to the Middle East/North Africa segment.