SEGMENT INFORMATION, GEOGRAPHICAL DATA AND MAJOR CUSTOMERS (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2018

Dec. 31, 2017

Segment Information, Geographical Data and Major Customers

(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 table provides a comparison of segment revenues, vessel operating profit (loss), depreciation and amortization, and additions to properties and equipment for the quarters and six month periods ended June 30, 2018 and 2017. 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			Successor			Predecessor
(In thousands)	Quarter Ended June 30, 2018			Quarter Ended June 30, 2017			Six Months Ended June 30, 2018			Six Months Ended June 30, 2017
Revenues:
Vessel revenues:
Americas	$	32,601			31,887			58,682			112,420
Middle East/Asia Pacific		22,406			27,766			40,794			54,444
Europe/Mediterranean Sea		13,357			11,031			22,980			21,197
West Africa		35,810			41,573			69,212			81,101

		104,174			112,257			191,668			269,162
Other operating revenues (A)		1,427			2,849			5,426			6,693

	$	105,601			115,106			197,094			275,855

Vessel operating profit (loss):
Americas	$	5,681			(15,699	)		10,592			14,919
Middle East/Asia Pacific		625			(1,316	)		(1,628	)		(7,480	)
Europe/Mediterranean Sea		(1,142	)		(10,163	)		(4,696	)		(17,265	)
West Africa		1,705			(2,774	)		(48	)		(8,127	)

		6,869			(29,952	)		4,220			(17,953	)
Other operating profit (loss)		778			55			2,284			(170	)

		7,647			(29,897	)		6,504			(18,123	)
Corporate general and administrative expenses		(7,810	)		(14,702	)		(14,494	)		(36,459	)
Corporate depreciation		(100	)		(541	)		(200	)		(1,105	)

Corporate expenses		(7,910	)		(15,243	)		(14,694	)		(37,564	)
Gain on asset dispositions, net		1,338			3,189			3,257			9,253
Asset impairments (B)		(1,215	)		(163,423	)		(7,401	)		(228,280	)

Operating loss	$	(140	)		(205,374	)		(12,334	)		(274,714	)

Foreign exchange loss		(1,002	)		(1,157	)		(1,350	)		(493	)
Equity in net earnings (losses) of unconsolidated companies		390			4,517			(15,049	)		7,358
Interest income and other, net		2,914			1,680			2,786			3,268
Reorganization items		—			(313,176	)		—			(313,176	)
Interest and other debt costs, net		(7,547	)		(10,605	)		(15,146	)		(31,613	)

Loss before income taxes	$	(5,385	)		(524,115	)		(41,093	)		(609,370	)

Depreciation and amortization:
Americas	$	3,530			10,748			6,843			22,045
Middle East/Asia Pacific		2,844			7,746			5,613			16,245
Europe/Mediterranean Sea		2,239			6,803			4,043			13,364
West Africa		4,067			9,595			8,093			19,411

		12,680			34,892			24,592			71,065
Other		5			854			10			1,709
Corporate		100			541			200			1,105

	$	12,785			36,287			24,802			73,879

Additions to properties and equipment:
Americas	$	1,230			27			2,267			27
Middle East/Asia Pacific		1,073			648			1,496			1,673
Europe/Mediterranean Sea		135			—			135			—
West Africa		—			274			1			368

		2,438			949			3,899			2,068
Other		—			—			—			—
Corporate (C)		1,659			678			1,876			7,632

	$	4,097			1,627			5,775			9,700

(A)	Included in other operating revenues for the quarter and six months ended June 30, 2017, were $0.5 million and $0.8 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)	Refer to Note (14) for additional information regarding asset impairment.

(C)	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 revenues, vessel operating profit, 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 the activities of the company’s shipyards, brokered vessels and other miscellaneous marine-related businesses.


	Successor			Predecessor
(In thousands)	Period from August 1, 2017 through December 31, 2017			Period from April 1, 2017 through July 31, 2017			Year Ended March 31, 2017
Revenues:
Vessel revenues:
Americas	$	45,784			40,848			239,843
Middle East/Asia Pacific		39,845			36,313			114,618
Europe/Mediterranean Sea		19,895			15,466			42,667
West Africa		66,360			53,970			186,688

		171,884			146,597			583,816
Other operating revenues		6,869			4,772			17,795

	$	178,753			151,369			601,611

Vessel operating profit (loss):
Americas	$	(1,599	)		(22,549	)		18,873
Middle East/Asia Pacific		451			(1,434	)		(25,310	)
Europe/Mediterranean Sea		(1,497	)		(12,680	)		(26,733	)
West Africa		2,308			(8,828	)		(24,662	)

		(337	)		(45,491	)		(57,832	)
Other operating profit (loss)		1,614			876			(1,548	)

		1,277			(44,615	)		(59,380	)
Corporate general and administrative expenses(A)		(14,823	)		(17,542	)		(55,389	)
Corporate depreciation		(166	)		(704	)		(2,456	)

Corporate expenses		(14,989	)		(18,246	)		(57,845	)

Gain on asset dispositions, net		6,616			3,561			24,099
Asset impairments		(16,777	)		(184,748	)		(484,727	)

Operating loss		(23,873	)		(244,048	)		(577,853	)

Foreign exchange loss		(407	)		(3,181	)		(1,638	)
Equity in net earnings of unconsolidated companies		2,130			4,786			5,710
Interest income and other, net		2,771			2,384			5,193
Reorganization items		(4,299	)		(1,396,905	)		—
Interest and other debt costs		(13,009	)		(11,179	)		(75,026	)

Loss before income taxes	$	(36,687	)		(1,648,143	)		(643,614	)

Depreciation and amortization:
Americas	$	5,767			13,945			48,814
Middle East/Asia Pacific		4,716			9,967			40,849
Europe/Mediterranean Sea		2,794			9,060			26,538
West Africa		6,067			12,632			44,204

		19,344			45,604			160,405
Other		827			1,139			4,430
Corporate		166			704			2,456

	$	20,337			47,447			167,291

Additions to properties and equipment:
Americas	$	144			27			93
Middle East/Asia Pacific		2,596			1,042			1,612
Europe/Mediterranean Sea		—			—			—
West Africa		195			375			743

		2,935			1,444			2,448
Corporate		6,899			821			28,099

	$	9,834			2,265			30,547

Total assets(B):
Americas	$	164,958			714,891			779,778
Middle East/Asia Pacific		48,268			424,896			583,385
Europe/Mediterranean Sea		171,157			597,819			588,519
West Africa		864,299			1,277,552			1,308,836

		1,248,682			3,015,158			3,260,518
Other		2,443			20,392			21,580

		1,251,125			3,035,550			3,282,098
Investments in and advances to unconsolidated companies		29,216			49,367			45,115

		1,280,341			3,084,917			3,327,213
Corporate(C)		465,839			799,752			863,486

	$	1,746,180			3,884,669			4,190,699

(A)

Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 are included in reorganization items. Included in corporate general and administrative expenses for the period four month period April 1, 2017 through July 31, 2017 (Predecessor) and year ended March 31, 2017 (Predecessor) were $6.7 million and $29 million of restructuring-related professional service costs, respectively.

(B)

Marine support services are conducted worldwide with assets that are highly mobile. Revenues are principally derived from offshore service vessels, which regularly and routinely move from one operating area to another, often to and from offshore operating areas in different continents. Because of this asset mobility, revenues and long-lived assets attributable to the company’s international marine operations in any one country are not material.

(C)

Included in Corporate are vessels currently under construction which had not yet been assigned to a non-corporate reporting segment. The vessel construction costs will be reported in Corporate until the earlier of the vessels being assigned to a non-corporate reporting segment or the vessels’ delivery. At December 31, 2017 (Successor), July 31, 2017 (Predecessor) and March 31, 2017 (Predecessor), was $9.3 million, $47.5 million and $52.4 million, respectively, of vessel construction costs were included in Corporate.

Schedule of Segment Reporting Information, Revenue by Vessel Class

The following table compares revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue for the quarters and six month periods ended June 30, 2018 (Successor) and June 30, 2017 (Predecessor):


	Successor				Predecessor				Successor				Predecessor
	Quarter Ended June 30, 2018				Quarter Ended June 30, 2017				Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
Vessel revenue by vessel class (In thousands)	% of Vessel Revenue				% of Vessel Revenue				% of Vessel Revenue				% of Vessel Revenue
Americas fleet:
Deepwater	$	22,661	22	%		17,313	15	%	$	38,866	20	%		80,144		30	%
Towing-supply		7,560	7	%		11,274	10	%		14,406	8	%		26,012		10	%
Other		2,380	2	%		3,300	3	%		5,410	3	%		6,264		2	%
Total	$	32,601	31	%		31,887	28	%	$	58,682	31	%		112,420		42	%
Middle East/Asia Pacific fleet:
Deepwater	$	9,603	9	%		10,701	10	%	$	19,167	10	%		20,134		7	%
Towing-supply		12,783	12	%		17,065	15	%		21,607	11	%		34,310		13	%
Other		20	<1	%		—	—			20	<1	%		—		—
Total	$	22,406	21	%		27,766	25	%	$	40,794	21	%		54,444		20	%
Europe/Mediterranean Sea fleet:
Deepwater	$	12,596	12	%		8,237	8	%	$	21,616	11	%		18,090		7	%
Towing-supply		761	1	%		2,794	2	%		1,364	1	%		3,116		1	%
Other		—	—			—	—			—	—			(9	)	(<1	%)
Total	$	13,357	13	%		11,031	10	%	$	22,980	12	%		21,197		8	%
West Africa fleet:
Deepwater	$	14,314	14	%		13,921	12	%	$	28,252	15	%		27,100		10	%
Towing-supply		17,321	17	%		24,225	22	%		33,460	17	%		46,697		17	%
Other		4,175	4	%		3,427	3	%		7,500	4	%		7,304		3	%
Total	$	35,810	35	%		41,573	37	%	$	69,212	36	%		81,101		30	%
Worldwide fleet:
Deepwater	$	59,174	57	%		50,172	45	%	$	107,901	56	%		145,468		54	%
Towing-supply		38,425	37	%		55,358	49	%		70,837	37	%		110,135		41	%
Other		6,575	6	%		6,727	6	%		12,930	7	%		13,559		5	%
Total	$	104,174	100	%		112,257	100	%	$	191,668	100	%		269,162		100	%

The following table discloses the amount of revenue by segment, and in total for the worldwide fleet, along with the respective percentage of total vessel revenue:


	Successor					Predecessor
	Period from August 1, 2017 through December 31, 2017					Period from April 1, 2017 through July 31, 2017					Year Ended March 31, 2017
Revenue by vessel class: (In thousands):			% of Vessel Revenue					% of Vessel Revenue					% of Vessel Revenue
Americas fleet:
Deepwater	$	26,860		16	%		21,617		15	%		171,334		29	%
Towing-supply		13,835		8	%		15,021		10	%		56,561		10	%
Other		5,089		3	%		4,210		3	%		11,948		2	%
Total	$	45,784		27	%		40,848		28	%		239,843		41	%
Middle East/Asia Pacific fleet:
Deepwater	$	14,792		9	%		13,368		9	%		35,526		6	%
Towing-supply		25,053		14	%		22,945		16	%		79,092		13	%
Other		—		—			—		—			—		—
Total	$	39,845		23	%		36,313		25	%		114,618		19	%
Europe/Mediterranean Sea fleet:
Deepwater	$	18,204		10	%		11,620		8	%		39,492		7	%
Towing-supply		1,691		1	%		3,846		3	%		2,659		1	%
Other		—		—			—		—			516		<1	%
Total	$	19,895		11	%		15,466		11	%		42,667		8	%
West Africa fleet:
Deepwater	$	24,131		13	%		18,126		12	%		62,882		11	%
Towing-supply		33,806		20	%		31,297		21	%		100,073		17	%
Other		8,423		5	%		4,547		3	%		23,733		4	%
Total	$	66,360		39	%		53,970		36	%		186,688		32	%
Worldwide fleet:
Deepwater	$	83,987		49	%		64,731		44	%		309,234		53	%
Towing-supply		74,385		43	%		73,109		50	%		238,385		41	%
Other		13,512		8	%		8,757		6	%		36,197		6	%
Total	$	171,884		100	%		146,597		100	%		583,816		100	%

Entity Wide Major Customer Amount

The following table discloses our customers that accounted for 10% or more of total revenues:


	Successor			Predecessor
	Period from August 1, 2017 through December 31, 2017			Period from April 1, 2017 through July 31, 2017			Year Ended March 31, 2017
Chevron Corporation		17.4	%		17.5	%		16.3	%
Freeport McMoRan(A)		—			—			11.3	%
Saudi Aramco		10.1	%		11.7	%		10.0	%

(A)	A significant portion of this customer’s year ended March 31, 2017 revenue was the result of the early termination of a long-term vessel charter contract.

Comparison of Total Assets

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


(In thousands)	June 30, 2018		December 31, 2017
Total assets (A):
Americas (B)	$	310,121		164,958
Middle East/Asia Pacific		215,105		48,268
Europe/Mediterranean Sea		167,695		171,157
West Africa (C)		486,333		864,299

		1,179,254		1,248,682
Other		363		2,443

		1,179,617		1,251,125
Investments in, at equity, and advances to unconsolidated companies		1,335		29,216

		1,180,953		1,280,341
Corporate (D)		462,589		465,839

	$	1,643,542		1,746,180

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

(B)	Americas segment assets include cash held by non-corporate subsidiaries of $94.6 million and 95.1 million, as of June 30, 2018 and December 31, 2017, respectively.

(C)	West Africa segment assets include due from related parties of $197.1 million and $263.7 million as of June 30, 2018 and December 31, 2017, respectively.

(D)

Corporate includes cash (including restricted cash) of $353.2 million and $336.4 million as of June 30, 2018 and December 31. 2017, respectively. Also included in Corporate 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 June 30, 2018 and December 31, 2017, $11.2 million and $9.3 million, respectively, of vessel construction costs are included in Corporate.