(13)	SEGMENT AND GEOGRAPHIC DISTRIBUTION OF OPERATIONS

During the quarter ended March 31, 2018, the company’s Africa/Europe segment was split as a result of management realignment such that the company’s operations in Europe and Mediterranean Sea regions and the company’s West African regions are now separately reported segments. As such, the company now discloses these new segments as Europe/Mediterranean Sea and West Africa, respectively. The company’s Americas and Middle East/Asia Pacific segments are not affected by this change. This new segment alignment is consistent with how the company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Prior year amounts have been recast to conform to the new segment alignment.

The following tables provide a comparison of segment revenues, vessel operating profit (loss), depreciation and amortization, and additions to properties and equipment. Vessel revenues and operating costs relate to vessels owned and operated by the company while other operating revenues relate to brokered vessels and other miscellaneous marine-related businesses.

	Successor						Predecessor
				Period from			Period from
	Three Months			August 1, 2017			July 1, 2017
	Ended			through			through
(In thousands)	September 30, 2018			September 30, 2017			July 31, 2017
Revenues:
Vessel revenues:
Americas	$	28,039			17,449			8,961
Middle East/Asia Pacific		19,927			16,669			8,547
Europe/Mediterranean Sea		12,566			8,860			4,435
West Africa		36,479			27,593			12,397
		97,011			70,571			34,340
Other operating revenues (A)		2,181			3,729			1,923
	$	99,192			74,300			36,263
Vessel operating profit (loss):
Americas	$	1,212			(2,651	)		(6,850	)
Middle East/Asia Pacific		(701	)		944			(118	)
Europe/Mediterranean Sea		(2,056	)		(711	)		(2,517	)
West Africa		3,912			687			(6,054	)
		2,367			(1,731	)		(15,539	)
Other operating profit		485			809			821
		2,852			(922	)		(14,718	)

Corporate general and administrative expenses (B)		(9,415	)		(4,797	)		(2,840	)
Corporate depreciation		(99	)		(67	)		(163	)
Corporate expenses		(9,514	)		(4,864	)		(3,003	)

Gain (loss) on asset dispositions, net		(1,571	)		4			372
Asset impairments (C)		(16,853	)		—			(21,325	)
Operating loss	$	(25,086	)		(5,782	)		(38,674	)
Foreign exchange gain (loss)		1			(58	)		(2,024	)
Equity in net earnings (losses) of unconsolidated companies		56			1,305			269
Interest income and other, net		2,709			873			704
Reorganization items		—			(1,880	)		(1,083,729	)
Interest and other debt costs, net		(7,585	)		(5,240	)		(574	)
Loss before income taxes	$	(29,905	)		(10,782	)		(1,124,028	)
Depreciation and amortization:
Americas	$	3,858			2,295			3,197
Middle East/Asia Pacific		2,939			1,807			2,221
Europe/Mediterranean Sea		2,313			1,154			2,257
West Africa		4,176			2,407			3,037
		13,286			7,663			10,712
Other		5			412			285
Corporate		99			67			163
	$	13,390			8,142			11,160
Additions to properties and equipment:
Americas	$	564			—			—
Middle East/Asia Pacific		568			377			394
Europe/Mediterranean Sea		—			—			—
West Africa		54			159			101
		1,186			536			495
Corporate (D)		2,155			53			143
	$	3,341			589			638

(A)

Included in other operating revenues for the period from August 1, 2017 through September 30, 2017 (Successor) and the period from July 1, 2017 through July 31, 2017 (Predecessor), were $1.6 million and $0.4 million, respectively of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

(B)

Included in corporate general and administrative expenses for the three month period ended September 30, 2018 (Successor), are professional services costs related the proposed combination with GulfMark of $3.2 million.

(C)

Refer to Note (14) for additional information regarding asset impairment.

(D)

Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not been assigned to a non-corporate reporting segment as of the date presented.

	Successor						Predecessor
				Period from			Period from
	Nine Months			August 1, 2017			January 1, 2017
	Ended			through			through
(In thousands)	September 30, 2018			September 30, 2017			July 31, 2017
Revenues:
Vessel revenues:
Americas	$	86,721			17,449			121,380
Middle East/Asia Pacific		60,721			16,669			62,991
Europe/Mediterranean Sea		35,546			8,860			25,631
West Africa		105,691			27,593			93,499
		288,679			70,571			303,501
Other operating revenues (A)		7,607			3,729			8,617
	$	296,286			74,300			312,118
Vessel operating profit (loss):
Americas	$	11,804			(2,651	)		8,069
Middle East/Asia Pacific		(2,329	)		944			(7,597	)
Europe/Mediterranean Sea		(6,753	)		(711	)		(19,783	)
West Africa		3,867			687			(14,180	)
		6,589			(1,731	)		(33,491	)
Other operating profit		2,767			809			651
		9,356			(922	)		(32,840	)

Corporate general and administrative expenses (B)		(23,909	)		(4,797	)		(39,299	)
Corporate depreciation		(299	)		(67	)		(1,268	)
Corporate expenses		(24,208	)		(4,864	)		(40,567	)

Gain on asset dispositions, net		1,686			4			9,625
Asset impairments (C)		(24,254	)		—			(249,606	)
Operating loss	$	(37,420	)		(5,782	)		(313,388	)
Foreign exchange loss		(1,349	)		(58	)		(2,516	)
Equity in net earnings (losses) of unconsolidated companies		(14,993	)		1,305			7,627
Interest income and other, net		5,495			873			3,974
Reorganization items		—			(1,880	)		(1,396,905	)
Interest and other debt costs, net		(22,731	)		(5,240	)		(32,188	)
Loss before income taxes	$	(70,998	)		(10,782	)		(1,733,396	)
Depreciation and amortization:
Americas	$	10,700			2,295			25,242
Middle East/Asia Pacific		8,552			1,807			18,466
Europe/Mediterranean Sea		6,356			1,154			15,621
West Africa		12,269			2,407			22,447
		37,877			7,663			81,776
Other		16			412			1,995
Corporate		299			67			1,268
	$	38,192			8,142			85,039
Additions to properties and equipment:
Americas	$	2,831			—			27
Middle East/Asia Pacific		2,064			377			2,067
Europe/Mediterranean Sea		134			—			—
West Africa		35			159			469
		5,064			536			2,563
Corporate (D)		4,052			53			7,775
	$	9,116			589			10,338

(A)

Included in other operating revenues for the period from August 1, 2017 through September 30, 2017 (Successor) and the period from January 1, 2017 through July 31, 2017 (Predecessor), were $1.6 million and $1.1 million, respectively of revenues related to the company’s subsea business. The eight ROVs representing substantially all of the company’s subsea assets were sold in December 2017.

(B)

Included in corporate general and administrative expenses for the period from January 1, 2017 through July 31, 2017 (Predecessor), are restructuring-related professional services costs of $23.4 million. Included in corporate general and administrative expenses for the nine month period ended September 30, 2018 (Successor), are professional services costs related the proposed combination with GulfMark of $4.7 million.

(C)

Refer to Note (14) for additional information regarding asset impairment.

(D)

Included in Corporate are additions to properties and equipment relating to a vessel under construction which has not yet been assigned to a non-corporate reporting segment as of the dates presented.

The following table provides a comparison of total assets at September 30, 2018 and December 31, 2017:

	September 30,		December 31,
(In thousands)	2018		2017
Total assets (A):
Americas (B)	$	319,487		164,958
Middle East/Asia Pacific		203,320		48,268
Europe/Mediterranean Sea		153,877		171,157
West Africa (C)		458,327		864,299
		1,135,011		1,248,682
Other		—		2,443
		1,135,011		1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,129		29,216
		1,136,140		1,280,341
Corporate (D)		454,769		465,839
	$	1,590,909		1,746,180

(A)	The company’s segment level assets as of September 30, 2018, reflect the elimination of certain intersegment balances.

(B)	Americas segment assets include cash held by non-corporate subsidiaries of $100.3 million and $95.1 million, as of September 30, 2018 and December 31, 2017, respectively.

(C)	West Africa segment assets include due from related parties of $174.3 million and $263.7 million as of September 30, 2018 and December 31, 2017, respectively.

(D)

Corporate includes cash (including restricted cash) of $350.2 million and $336.4 million as of September 30, 2018 and December 31, 2017, respectively. Also included in Corporate at December 31, 2017 is a vessel under construction which has not yet been assigned to a non-corporate reporting segment. A vessel’s construction costs are reported in Corporate until the earlier of the date the vessel is assigned to a non-corporate reporting segment or the date it is delivered. At December 31, 2017, $9.3 million of vessel construction costs are included in Corporate.

The following tables compare 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
	Three Months					August 1, 2017					July 1, 2017
	Ended					through					through
	September 30, 2018					September 30, 2017					July 31, 2017
Vessel revenue by vessel class (In thousands)			% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue
Americas fleet:
Deepwater	$	19,513		20	%	$	9,798		14	%		4,304		12	%
Towing-supply		6,417		7	%		5,572		8	%		3,747		11	%
Other		2,109		2	%		2,079		3	%		910		3	%
Total	$	28,039		29	%	$	17,449		25	%		8,961		26	%
Middle East/Asia Pacific fleet:
Deepwater	$	7,607		8	%	$	5,726		8	%		2,667		8	%
Towing-supply		12,156		12	%		10,943		16	%		5,880		17	%
Other		164		<1	%		—		—			—		—
Total	$	19,927		20	%	$	16,669		24	%		8,547		25	%
Europe/Mediterranean Sea fleet:
Deepwater	$	11,643		12	%	$	7,810		11	%		3,383		10	%
Towing-supply		923		1	%		1,050		1	%		1,052		3	%
Other		—		—			—		—			—		—
Total	$	12,566		13	%	$	8,860		12	%	$	4,435		13	%
West Africa fleet:
Deepwater	$	15,101		16	%	$	9,772		14	%		4,205		12	%
Towing-supply		17,805		18	%		13,999		20	%		7,072		21	%
Other		3,573		4	%		3,822		5	%		1,120		3	%
Total	$	36,479		38	%	$	27,593		39	%	$	12,397		36	%
Worldwide fleet:
Deepwater	$	53,864		56	%	$	33,106		47	%		14,559		42	%
Towing-supply		37,301		38	%		31,564		45	%		17,751		52	%
Other		5,846		6	%		5,901		8	%		2,030		6	%
Total	$	97,011		100	%	$	70,571		100	%		34,340		100	%

	Successor										Predecessor
						Period from					Period from
	Nine Months					August 1, 2017					January 1, 2017
	Ended					through					through
	September 30, 2018					September 30, 2017					July 31, 2017
Vessel revenue by vessel class (In thousands)			% of Vessel Revenue					% of Vessel Revenue						% of Vessel Revenue
Americas fleet:
Deepwater (A)	$	58,379		20	%	$	9,798		14	%		84,448			28	%
Towing-supply		20,824		7	%		5,572		8	%		29,759			10	%
Other		7,518		3	%		2,079		3	%		7,173			2	%
Total	$	86,721		30	%	$	17,449		25	%		121,380			40	%
Middle East/Asia Pacific fleet:
Deepwater	$	26,774		9	%	$	5,726		8	%		22,801			8	%
Towing-supply		33,762		12	%		10,943		16	%		40,190			13	%
Other		185		<1	%		—		—			—			—
Total	$	60,721		21	%	$	16,669		24	%		62,991			21	%
Europe/Mediterranean Sea fleet:
Deepwater	$	33,260		11	%	$	7,810		11	%		21,473			7	%
Towing-supply		2,286		1	%		1,050		1	%		4,167			1	%
Other		—		—			—		—			(9	)		(<1	%)
Total	$	35,546		12	%	$	8,860		12	%		25,631			8	%
West Africa fleet:
Deepwater	$	43,354		15	%	$	9,772		14	%		31,306			10	%
Towing-supply		51,265		18	%		13,999		20	%		53,769			18	%
Other		11,072		4	%		3,822		5	%		8,424			3	%
Total	$	105,691		37	%	$	27,593		39	%		93,499			31	%
Worldwide fleet:
Deepwater (A)	$	161,767		55	%	$	33,106		47	%		160,028			53	%
Towing-supply		108,137		38	%		31,564		45	%		127,885			42	%
Other		18,775		7	%		5,901		8	%		15,588			5	%
Total (A)	$	288,679		100	%	$	70,571		100	%		303,501			100	%

(A)

Included in Americas fleet deepwater, Worldwide fleet deepwater and Worldwide total vessel revenues for the period January 1, 2017 through July 31, 2017 (Predecessor), is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.