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Equity Investments | 12 Months Ended
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Dec. 31, 2012
Equity Investments [Abstract] |
Equity Investments | Note 5 — Equity Investments As of December 31, 2012, we had two investments that we account for using the equity method of accounting: Deepwater Gateway and Independence Hub, both of which are included in our Production Facilities segment. Deepwater Gateway, L.L.C. In June 2002, w e, along with Enterprise Products Partners L.P. (”Enterprise”), formed Deepwater Gateway, each with a 50% interest, to design, construct, install, own and operate a tension leg platform production hub primarily for Anadarko Petroleum Corporation's Marco Polo field in the Deepwater Gulf of Mexico. Our investment in Deepwater Gateway totaled $91.4 million and $96.0 million as of December 31, 2012 and 2011, respectively (including capitalized interest of $1.3 million and $1.4 million at December 31, 2012 and 2011, respectively). Independence Hub, LLC. In December 2004, we acquired a 20% interest in Independence Hub, an affiliate of Enterprise. Independence Hub owns the "Independence Hub" platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. Our investment in Independence Hub was $76.2 million and $79.7 million as of December 31, 2012 and 2011, respectively (including capitalized interest of $4.6 m illion and $4.9 million a t December 31, 2012 an d 2011, respectively). We made the following contributions to our equity investments during the years ended December 31, 2012, 2011 and 2010 (in thousands):
|  | Year Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Clough Helix Pty Ltd. (see below) | $ | - | $ | 2,699 | $ | 8,253 |
Total | $ | - | $ | 2,699 | $ | 8,253 |
We received the following distributions from our equity investments during the years ended December 31, 2012, 2011 and 2010 (in thousands):
|  | Year Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Deepwater Gateway | $ | 8,157 | $ | 7,600 | $ | 8,125 |
Independence Hub |  | 8,073 |  | 18,580 |  | 21,615 |
Other |  | - |  | - |  | 268 |
Total | $ | 16,230 | $ | 26,180 | $ | 30,008 |
In February 2010, we announced the formation of a joint venture with Australian-based engineering and construction company, Clough Limited (“Clough”), to provide a range of subsea services to offshore operators in the Asia Pacific region. The joint venture, then named Clough Helix Pty Ltd, was to perform its services using the Normand Clough, a 118-meter long multi-service chartered vessel. The joint venture also utilized each member’s personnel and equipment to perform its subsea services as provided in the joint venture agreement. In 2011, our share of the income associated with the Australian joint venture’s operations was $2.1 million. O ur share of its losses was $3.6 million in 2010, which primarily reflects the cost associated with th e commencement of its operations. In December 2011, the marine construction and offshore engineering operations of Clough were acquired by a third party, including Clough’s 50% ownership interest in the joint venture. At December 31, 2011, we conducted an impairment assessment of our investment in the joint venture based on uncertainties concerning the continued availability of the Normand Clough and the limited backlog of existing projects at the time. We concluded that t he $10.6 million carrying amount of the investment in the joint venture was fully impaired and recorded a $10.6 m illion other than temporary impairment charge in the accompanying consolidated statements of operations. In the first quarter of 2012, we recorded additional los ses totaling $3.8 million, including a $3.0 million fee when we negotiated our exit from the joint venture. In April 2012, we paid this fee. In connection with our exit, we were entitled t o 50% of the value of certain of the net assets on hand at the time of our departure. We received approximatel y $3.7 million of proceeds for our pro rata portion of such assets of the joint venture, which was recorded as income in “Equity in earnings of investments” during the second quarter of 2012. We are no longer a participant in this Australian joint venture. The summarized aggregated financial information related to the subsidiaries we record using the equity investment is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Revenues | $ | 53,159 | $ | 193,521 | $ | 141,705 |
Operating income |  | 30,463 |  | 97,954 |  | 93,324 |
Net income |  | 30,463 |  | 93,215 |  | 93,005 |
|  | December 31, |
|  | 2012 |  | 2011 |  | 2010 |
Current assets | $ | 16,682 | $ | 39,754 | $ | 25,352 |
Total assets |  | 537,251 |  | 591,761 |  | 594,645 |
Current liabilities |  | 706 |  | 11,012 |  | 6,434 |
Total liabilities |  | 5,320 |  | 27,163 |  | 19,695 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 + Details
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