<SEC-DOCUMENT>0001193125-15-294502.txt : 20160112
<SEC-HEADER>0001193125-15-294502.hdr.sgml : 20160112
<ACCEPTANCE-DATETIME>20150818150959
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-15-294502
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150818

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TIDEWATER INC
		CENTRAL INDEX KEY:			0000098222
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER TRANSPORTATION [4400]
		IRS NUMBER:				720487776
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		601 POYDRAS ST.
		STREET 2:		SUITE 1500
		CITY:			NEW ORLEANS
		STATE:			LA
		ZIP:			70130
		BUSINESS PHONE:		5045681010

	MAIL ADDRESS:	
		STREET 1:		601 POYDRAS ST.
		STREET 2:		SUITE 1500
		CITY:			NEW ORLEANS
		STATE:			LA
		ZIP:			70130

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TIDEWATER MARINE SERVICE INC
		DATE OF NAME CHANGE:	19780724
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>CORRESP</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:54%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">August&nbsp;18, 2015 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B>Via Edgar Transmission</B> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Washington,
D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Re:&nbsp;&nbsp;&nbsp;&nbsp;Tidewater Inc. File No. 001-06311</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Transmitted herewith is Tidewater&#146;s reply to the Commission&#146;s inquiry letter of </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">July&nbsp;22, 2015. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"><B>TIDEWATER INC.</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Quinn P. Fanning</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Quinn P. Fanning</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Executive Vice President and</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chief Financial Officer</TD></TR>
</TABLE></DIV>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:54%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">August&nbsp;18, 2015 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="17%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">Tidewater Inc. </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:21%; font-size:10pt; font-family:Times New Roman">Form 10-K for Fiscal Year Ended March&nbsp;31, 2015 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:21%; font-size:10pt; font-family:Times New Roman">Filed May&nbsp;28, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:21%; font-size:10pt; font-family:Times New Roman">File
No.&nbsp;001-06311 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This letter is
the response of Tidewater Inc. (the &#147;company&#148; or &#147;Tidewater&#148;) to the staff&#146;s comment letter dated July&nbsp;22, 2015 regarding the company&#146;s Annual Report on Form 10-K for the year ended March&nbsp;31, 2015. For the
staff&#146;s convenience, we have reproduced below the full text of the staff&#146;s comment, which is followed by the company&#146;s response. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Impairment of Long-Lived Assets, Page 75</U> </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">Your goodwill-related disclosures on page F-12 and F-57 indicate the impairment charge recognized in 2015 was attributed to (1)&nbsp;the rapid and significant decline in crude oil and natural gas prices; and
(2)&nbsp;the expected short to intermediate term effect that the downturn might have on levels of exploration and production activity, and the likely negative effect such conditions had on average day rates and utilization levels of your vessels. In
this regard, please tell us how you considered the less favorable average day rates, utilization levels and the significant deterioration in your market capitalization from March&nbsp;31, 2014 to March&nbsp;31, 2015, in assessing whether the
carrying value of your vessels groups, including your stacked vessels and vessels withdrawn from service, may not be recoverable pursuant to ASC 360-10-35-21. Please be specific in your response. If such factors were not considered by management as
impairment indicators, please explain why. As part of your response, please tell us whether the carrying value of any of your vessels exceeded their charter-free market value at March&nbsp;31, 2015. If so, please expand your impairment of long-lived
assets critical accounting policy to disclose the number of vessels whose carrying value exceeds their charter-free market value and the aggregate amount. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Response:</U> We evaluate our goodwill for impairment using the standard two-step method prescribed by Accounting Standards Codification (ASC) 350,
<I>Intangibles &#150; Goodwill and Other.</I> This evaluation includes a comparison of the estimated fair value of each reporting unit (which for us is the segment) to its carrying amount to determine if the second step is required to measure any
amount of impairment. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In our evaluation of goodwill during the quarter ended December&nbsp;31, 2014, we determined that the carrying
values of the Americas and Sub-Saharan Africa/Europe reporting units were greater than their respective fair values, and accordingly, recorded a goodwill impairment charge of $283.7 million to write off the company&#146;s remaining goodwill. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We evaluate the carrying value of our vessels in accordance with ASC 360 <I>Impairment or Disposal of Long-Lived Assets</I>. This evaluation is made at the
asset group level (in contrast to the reporting unit approach of ASC 350) and is based on estimated undiscounted cash flows (in contrast to the fair value approach of ASC 350). Our process for vessel impairment review is a <FONT
STYLE="white-space:nowrap">two-pronged</FONT> approach. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">First, we review our fleet of active vessels (i.e., those vessels not stacked) by asset group,
which combines vessels with similar operating and marketing characteristics, and subdivides the asset groups between our older vessels and newer vessels. Our active fleet at March&nbsp;31, 2015 includes a total of 45 different asset groups. We
estimate the future undiscounted cash flows that we expect each asset group will generate over the remaining useful life of each vessel within such group and compare that amount against the carrying values of the asset group to determine if a
write-down may be required. For each asset group with estimated undiscounted cash flows that are less than the carrying values of the group, we estimate the fair values of the asset groups, on a vessel-by-vessel basis, with the assistance of
third-party appraisers or brokers for the vessels with more significant carrying values, and record an impairment charge, if any, for the excess amount of the aggregate carrying value of the vessels within the asset group over the estimated fair
value of such vessels. In estimating the future undiscounted cash flows that we expect an asset group to generate, the primary drivers are anticipated average utilization rates, average dayrates, and average daily operating expenses for each asset
group. These estimates are developed by management based on recent actual utilization, dayrates and operating costs as well as our expectations of market conditions during the period of projected future cash flows (i.e., on the basis of expected
future charter hire). All of these estimates are subject to significant variability and are sensitive to changes in market conditions. Our estimates changed considerably from fiscal 2014 to fiscal 2015 in response to the rapid and significant
decline in oil and gas prices during the last quarter of calendar 2014, and the effect that the downturn had on the demand for our vessels, both of which we recognized would have a significant adverse effect on average dayrates and utilization
levels. As an example, in March 2014, West Texas Intermediate (WTI) crude was trading at over $100 per barrel, but had fallen to under $50 per barrel by March 2015. Likewise, the average utilization of our worldwide fleet was 80.8% for the quarter
ended March&nbsp;31, 2014, but had fallen to 71.4% for the quarter ended March&nbsp;31, 2015. Over the same period, dayrates for our deepwater fleet dropped from $29,730 per day to $27,942 per day while dayrates for other vessel classes in our fleet
dropped more modestly. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The model that we use to estimate the future cash flows of our asset groups when we undertake asset impairment testing in
accordance with Accounting Standards Codification (ASC) 360, <I>Impairment or Disposal of Long-lived Assets</I> is the same model that we use to estimate the fair value of each reporting unit in our goodwill impairment analysis in accordance with
ASC 350, <I>Intangibles&nbsp;&#150;&nbsp;Goodwill and Other</I>. We use the same estimates for average day rates, utilization rates, and average daily operating expenses in both impairment analyses, so they both consider the same less than favorable
market conditions experienced during fiscal 2015 as discussed in the goodwill-related disclosures on pages F-12 and F-57. While the significant deterioration in our market capitalization did not have a direct impact on our estimate of undiscounted
cash </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
flows, as an indicator of market conditions, we considered our market capitalization in arriving at our assumptions about the future operating environment, which, in turn, affected our estimates
of average dayrates and utilization levels. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In fiscal 2015 we conducted a review of our entire active fleet at December&nbsp;31, 2014. For all but five
of our asset groups the estimated undiscounted cash flows associated with each asset group exceeded its carrying value and an impairment write-down was not warranted for any of these asset groups. For the five asset groups that did not satisfy the
undiscounted cash flow test, we estimated the charter-free market value of each vessel in the asset group, with the assistance of third-party appraisers or brokers for the vessels with more significant carrying values (generally, all vessels whose
net book value exceeds $1 million), and compared the aggregate fair value of the group with the group&#146;s aggregate carrying value. None of these groups required an impairment write-down at December&nbsp;31, 2014. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">At March&nbsp;31, 2015, we reviewed actual operating results for each asset group for the three months ended March&nbsp;31, 2015, and compared the average
utilization rates, average dayrates and operating costs for this period with the assumptions used in our review as of December&nbsp;31, 2014. For a limited number of asset groups whose operating results deteriorated more than expected we updated our
undiscounted cash flow test at March&nbsp;31, 2015. There were no asset groups that required an impairment write-down as a result of the updated test at March&nbsp;31, 2015. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Second, we review our stacked fleet and vessels withdrawn from service for impairment at the individual vessel level every six months, or more frequently if
changes in circumstances indicate that the carrying amount of a vessel may not be recoverable. The company considers a vessel to be stacked if the vessel crew is disembarked and limited maintenance is being performed on the vessel. During the year
ended March&nbsp;31, 2015, demand for offshore support vessels, and particularly older offshore support vessels, decreased and we utilized the stacking of vessels to save operating costs. We stack vessels when market conditions warrant and they are
no longer considered stacked when they are returned to active service, sold or otherwise disposed. We stacked 20 vessels during the fiscal year ended March&nbsp;31, 2015, and had 21 vessels stacked at year-end. The stacked vessels are more likely
(than the active fleet) to result in impairments because in performing the impairment analysis they are not projected to generate future operating cash flows. We estimate each stacked vessel&#146;s fair value by considering items such as the
vessel&#146;s age, length of time stacked, likelihood of a return to active service, and actual recent sales of similar vessels. In certain situations (generally all vessels whose net book value is in excess of $1 million) we obtain an estimate of
the fair value of the stacked vessel from third-party appraisers or brokers. For the year ended March&nbsp;31, 2015, there were twelve vessels whose carrying values exceeded their charter-free market values and we recorded an aggregate impairment
charge of $11.2 million on these vessels. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Our current disclosures include the aggregate amount of impairments recorded for each period presented. In
future filings we will disclose the number of vessels or other assets incurring an impairment charge. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This letter confirms our understanding that: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the company is responsible for the adequacy and accuracy of the disclosure in the filing; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and </TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If further detail, clarification, or discussion on these items is desired, please contact me at: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Tidewater Inc. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">6002 Rogerdale Road, Suite 600 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Houston, TX 77072-1655 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">713-470-5231 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">or by e-mail at </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>qfanning@tdw.com</U> </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Very truly yours,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman"><B>TIDEWATER INC.</B></P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Quinn P. Fanning</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Quinn P. Fanning</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Executive Vice President and</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chief Financial Officer</TD></TR>
</TABLE></DIV>
</BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
