(12)

GOODWILL

The company historically performed its annual goodwill impairment test 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.

During the quarter ended December, 31, 2014 the company performed its annual goodwill impairment assessment and determined that the rapid and significant decline in crude oil and natural gas prices (which occurred and accelerated throughout the latter part of the company’s third fiscal quarter), and the expected short to intermediate term effect that the downturn might have on levels of exploration and production activity would likely have a negative effect on average day rates and utilization levels of the company’s vessels. Expected future cash flow analyses using the projected average day rates and utilization levels in this new commodity pricing environment were included in the company’s valuation models and indicated that the carrying value of the Americas and Sub-Saharan Africa/Europe reporting units were less than their respective fair values. A goodwill impairment charge of $283.7 million, to write-off the company’s remaining goodwill, was recorded during the quarter ended December 31, 2014.

Goodwill by reportable segment at June 30, 2015 and 2014 is as follows:


(In thousands)		March 31, 2015		Goodwill acquired		Impairments		June 30, 2015
Americas	$		—		—		—		—
Sub-Saharan Africa/Europe			—		—		—		—
Total carrying amount (A)	$		—		—		—		—


(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 (B)	$		283,699		—		—		283,699

(A)

The total carrying amount of goodwill at June 30, 2015 is net of accumulated impairment charges of $370.9 million.

(B)

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.