ASSET IMPAIRMENTS

6 Months Ended

Sep. 30, 2016

(15)	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, 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.

Due in part to the modernization of the company’s fleet more vessels that are being stacked are newer vessels that are expected to return to active service. 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 below table summarizes the combined fair value of the assets that incurred impairments during the quarters and six-month periods ended September 30, 2016 and 2015, along with the amount of impairment.

	Quarter Ended				Six Months Ended
	September 30,				September 30,
(In thousands)	2016		2015		2016		2015
Number of vessels impaired during the period		42		19		54		33
Number of ROVs impaired during the period		8		—		8		—
Amount of impairment incurred	$	129,562		31,672		166,448		46,630
Combined fair value of assets incurring impairment		322,550		107,445		477,950		154,300