Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HELIX ENERGY SOLUTIONS GROUP, INC. | |
Entity Central Index Key | 0000866829 | |
Entity File Number | 001-32936 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 95-3409686 | |
Entity Address, Address Line One | 3505 West Sam Houston Parkway North | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77043 | |
City Area Code | 281 | |
Local Phone Number | 618–0400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 148,809,467 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 286,340 | $ 279,459 |
Accounts receivable: | ||
Trade, net of allowance for uncollectible accounts of $0 | 91,707 | 67,932 |
Unbilled and other | 72,548 | 51,943 |
Other current assets | 61,751 | 51,594 |
Total current assets | 512,346 | 450,928 |
Property and equipment | 2,819,932 | 2,785,778 |
Less accumulated depreciation | (1,022,138) | (959,033) |
Property and equipment, net | 1,797,794 | 1,826,745 |
Operating lease right-of-use assets | 213,048 | 0 |
Other assets, net | 90,323 | 70,057 |
Total assets | 2,613,511 | 2,347,730 |
Current liabilities: | ||
Accounts payable | 79,122 | 54,813 |
Accrued liabilities | 71,982 | 85,594 |
Income tax payable | 0 | 3,829 |
Current maturities of long-term debt | 108,468 | 47,252 |
Current operating lease liabilities | 52,840 | 0 |
Total current liabilities | 312,412 | 191,488 |
Long-term debt | 304,932 | 393,063 |
Operating lease liabilities | 164,761 | 0 |
Deferred tax liabilities | 110,118 | 105,862 |
Other non-current liabilities | 39,008 | 39,538 |
Total liabilities | 931,231 | 729,951 |
Redeemable noncontrolling interests | 3,257 | 0 |
Shareholders’ equity: | ||
Common stock, no par, 240,000 shares authorized, 148,802 and 148,203 shares issued, respectively | 1,316,805 | 1,308,709 |
Retained earnings | 437,418 | 383,034 |
Accumulated other comprehensive loss | (75,200) | (73,964) |
Total shareholders’ equity | 1,679,023 | 1,617,779 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 2,613,511 | $ 2,347,730 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for uncollectible accounts | $ 0 | $ 0 |
Shareholders’ equity: | ||
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 148,802,000 | 148,203,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 212,609 | $ 212,575 | $ 581,160 | $ 581,462 |
Cost of sales | 157,535 | 160,582 | 469,898 | 473,589 |
Gross profit | 55,074 | 51,993 | 111,262 | 107,873 |
Gain on disposition of assets, net | 0 | 146 | 0 | 146 |
Selling, general and administrative expenses | (16,076) | (20,762) | (48,923) | (52,986) |
Income from operations | 38,998 | 31,377 | 62,339 | 55,033 |
Equity in losses of investment | (13) | (107) | (82) | (378) |
Net interest expense | (1,901) | (3,249) | (6,204) | (10,744) |
Loss on extinguishment of long-term debt | 0 | (2) | (18) | (1,183) |
Other expense, net | (2,285) | (709) | (2,430) | (3,225) |
Royalty income and other | 362 | 652 | 2,897 | 4,068 |
Income before income taxes | 35,161 | 27,962 | 56,502 | 43,571 |
Income tax provision | 3,539 | 841 | 6,739 | 1,226 |
Net income | 31,622 | 27,121 | 49,763 | 42,345 |
Net loss attributable to redeemable noncontrolling interests | (73) | 0 | (104) | 0 |
Net income attributable to common shareholders | $ 31,695 | $ 27,121 | $ 49,867 | $ 42,345 |
Earnings per share of common stock (in dollars per share) | ||||
Basic | $ 0.21 | $ 0.18 | $ 0.33 | $ 0.29 |
Diluted | $ 0.21 | $ 0.18 | $ 0.33 | $ 0.29 |
Weighted average common shares outstanding (in shares) | ||||
Basic | 147,575 | 146,700 | 147,506 | 146,679 |
Diluted | 148,354 | 146,964 | 148,086 | 146,761 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 31,622 | $ 27,121 | $ 49,763 | $ 42,345 |
Other comprehensive loss, net of tax: | ||||
Net unrealized gain (loss) on hedges arising during the period | (274) | (88) | (701) | 839 |
Reclassifications to net income | 1,046 | 1,799 | 4,867 | 5,233 |
Income taxes on hedges | (156) | (357) | (838) | (1,298) |
Net change in hedges, net of tax | 616 | 1,354 | 3,328 | 4,774 |
Unrealized loss on note receivable arising during the period | 0 | 0 | 0 | (629) |
Income taxes on note receivable | 0 | 0 | 0 | 132 |
Unrealized loss on note receivable, net of tax | 0 | 0 | 0 | (497) |
Foreign currency translation loss | (4,301) | (1,421) | (4,564) | (4,277) |
Other comprehensive loss, net of tax | (3,685) | (67) | (1,236) | 0 |
Comprehensive income | 27,937 | 27,054 | 48,527 | 42,345 |
Less comprehensive loss attributable to redeemable noncontrolling interests: | ||||
Net loss | (73) | 0 | (104) | 0 |
Foreign currency translation loss | (78) | 0 | (78) | 0 |
Comprehensive loss attributable to redeemable noncontrolling interests | (151) | 0 | (182) | 0 |
Comprehensive income attributable to common shareholders | $ 28,088 | $ 27,054 | $ 48,709 | $ 42,345 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2017 | $ 1,567,393 | $ 1,284,274 | $ 352,906 | $ (69,787) |
Balance, beginning of period (in shares) at Dec. 31, 2017 | 147,740 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income attributable to common shareholders | 42,345 | 42,345 | ||
Reclassification of stranded tax effect to retained earnings | 0 | 1,530 | (1,530) | |
Foreign currency translation adjustments | (4,277) | (4,277) | ||
Unrealized gain on hedges, net of tax | 4,774 | 4,774 | ||
Unrealized loss on note receivable, net of tax | (497) | (497) | ||
Accretion of redeemable noncontrolling interests | 0 | |||
Equity component of debt discount on convertible senior notes | 15,411 | $ 15,411 | ||
Activity in company stock plans, net and other | (438) | $ (438) | ||
Activity in company stock plans, net and other (in shares) | 407 | |||
Share-based compensation | 7,456 | $ 7,456 | ||
Balance, end of period at Sep. 30, 2018 | 1,632,168 | $ 1,306,703 | 396,781 | (71,316) |
Balance, end of period (in shares) at Sep. 30, 2018 | 148,147 | |||
Balance, beginning of period at Jun. 30, 2018 | 1,602,394 | $ 1,303,984 | 369,659 | (71,249) |
Balance, beginning of period (in shares) at Jun. 30, 2018 | 148,107 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income attributable to common shareholders | 27,121 | 27,121 | ||
Foreign currency translation adjustments | (1,421) | (1,421) | ||
Unrealized gain on hedges, net of tax | 1,354 | 1,354 | ||
Unrealized loss on note receivable, net of tax | 0 | |||
Accretion of redeemable noncontrolling interests | 0 | |||
Equity component of debt discount on convertible senior notes | (2) | $ (2) | ||
Activity in company stock plans, net and other | 213 | $ 213 | ||
Activity in company stock plans, net and other (in shares) | 40 | |||
Share-based compensation | 2,509 | $ 2,509 | ||
Balance, end of period at Sep. 30, 2018 | 1,632,168 | $ 1,306,703 | 396,781 | (71,316) |
Balance, end of period (in shares) at Sep. 30, 2018 | 148,147 | |||
Balance, beginning of period at Dec. 31, 2018 | 1,617,779 | $ 1,308,709 | 383,034 | (73,964) |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 148,203 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income attributable to common shareholders | 49,867 | 49,867 | ||
Reclassification of deferred gain from sale and leaseback transaction to retained earnings | 4,560 | 4,560 | ||
Foreign currency translation adjustments | (4,564) | (4,564) | ||
Unrealized gain on hedges, net of tax | 3,328 | 3,328 | ||
Unrealized loss on note receivable, net of tax | 0 | |||
Accretion of redeemable noncontrolling interests | (43) | (43) | ||
Activity in company stock plans, net and other | (765) | $ (765) | ||
Activity in company stock plans, net and other (in shares) | 599 | |||
Share-based compensation | 8,861 | $ 8,861 | ||
Balance, end of period at Sep. 30, 2019 | 1,679,023 | $ 1,316,805 | 437,418 | (75,200) |
Balance, end of period (in shares) at Sep. 30, 2019 | 148,802 | |||
Balance, beginning of period at Jun. 30, 2019 | 1,648,396 | $ 1,314,163 | 405,748 | (71,515) |
Balance, beginning of period (in shares) at Jun. 30, 2019 | 148,759 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income attributable to common shareholders | 31,695 | 31,695 | ||
Foreign currency translation adjustments | (4,301) | (4,301) | ||
Unrealized gain on hedges, net of tax | 616 | 616 | ||
Unrealized loss on note receivable, net of tax | 0 | |||
Accretion of redeemable noncontrolling interests | (25) | (25) | ||
Activity in company stock plans, net and other | 214 | $ 214 | ||
Activity in company stock plans, net and other (in shares) | 43 | |||
Share-based compensation | 2,428 | $ 2,428 | ||
Balance, end of period at Sep. 30, 2019 | $ 1,679,023 | $ 1,316,805 | $ 437,418 | $ (75,200) |
Balance, end of period (in shares) at Sep. 30, 2019 | 148,802 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||
Balance, beginning of period | $ 3,383 | $ 0 |
Net loss attributable to redeemable noncontrolling interests | (73) | (104) |
Foreign currency translation adjustments related to redeemable noncontrolling interests | (78) | (78) |
Issuance of redeemable noncontrolling interests | 3,396 | |
Accretion of redeemable noncontrolling interests | 25 | 43 |
Balance, end of period | $ 3,257 | $ 3,257 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 49,763 | $ 42,345 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 84,420 | 83,339 |
Amortization of debt discounts | 4,642 | 4,238 |
Amortization of debt issuance costs | 2,752 | 2,703 |
Share-based compensation | 8,979 | 7,569 |
Deferred income taxes | 2,347 | (5,716) |
Equity in losses of investment | 82 | 378 |
Gain on disposition of assets, net | 0 | 146 |
Loss on extinguishment of long-term debt | 18 | 1,183 |
Unrealized gain on derivative contracts, net | (2,351) | (2,289) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (45,399) | (15,769) |
Other current assets | 12,215 | (5,662) |
Income tax payable, net of income tax receivable | (3,143) | 2,963 |
Accounts payable and accrued liabilities | (14,765) | 6,968 |
Other, net | 9,683 | (28,723) |
Net cash provided by operating activities | 89,877 | 150,827 |
Cash flows from investing activities: | ||
Capital expenditures | (45,636) | (55,431) |
STL acquisition, net | (4,081) | 0 |
Proceeds from sale of assets | 2,550 | 25 |
Net cash used in investing activities | (47,167) | (55,406) |
Cash flows from financing activities: | ||
Issuance of Convertible Senior Notes due 2023 | 0 | 125,000 |
Repurchase of Convertible Senior Notes due 2032 | 0 | (60,365) |
Proceeds from term loan | 35,000 | 0 |
Repayment of term loan | (34,567) | (62,872) |
Repayment of Nordea Q5000 Loan | (26,786) | (26,786) |
Repayment of MARAD Debt | (6,858) | (6,532) |
Debt issuance costs | (1,544) | (3,867) |
Payments related to tax withholding for share-based compensation | (1,345) | (1,058) |
Proceeds from issuance of ESPP shares | 462 | 506 |
Net cash used in financing activities | (35,638) | (35,974) |
Effect of exchange rate changes on cash and cash equivalents | (191) | (947) |
Net increase in cash and cash equivalents | 6,881 | 58,500 |
Cash and cash equivalents: | ||
Balance, beginning of year | 279,459 | 266,592 |
Balance, end of period | $ 286,340 | $ 325,092 |
Basis Of Presentation And New A
Basis Of Presentation And New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation And New Accounting Standards | Note 1 — Basis of Presentation and New Accounting Standards The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, Helix). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements have been prepared pursuant to instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”) and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP in U.S. dollars and are consistent in all material respects with those applied in our 2018 Annual Report on Form 10-K (“ 2018 Form 10-K”) with the exception of the impact of adopting the new lease accounting standard in 2019 (see below). The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments, which, unless otherwise disclosed, are of normal recurring nature, that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income and statements of cash flows, as applicable. The operating results for the three- and nine- month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Our balance sheet as of December 31, 2018 included herein has been derived from the audited balance sheet as of December 31, 2018 included in our 2018 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto included in our 2018 Form 10-K. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. New accounting standards adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which was updated by subsequent amendments. ASC 842 requires a lessee to recognize a lease right-of-use asset and related lease liability for most leases, including those classified as operating leases. ASC 842 also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. We adopted ASC 842 in the first quarter of 2019 using the modified retrospective method. We also elected the package of practical expedients permitted under the transition guidance that, among other things, allows companies to carry forward their historical lease classification. Our adoption of ASC 842 resulted in the recognition of operating lease liabilities of $259.0 million and corresponding right-of-use (“ROU”) assets of $253.4 million (net of existing prepaid/deferred rent balances) as of January 1, 2019. In addition, we reclassified the remaining deferred gain of $4.6 million (net of deferred taxes of $0.9 million ) on a 2016 sale and leaseback transaction to retained earnings. Subsequent to adoption, leases in foreign currencies will generate foreign currency gains and losses, and we will no longer amortize the deferred gain from the aforementioned sale and leaseback transaction. Aside from these changes, ASC 842 is not expected to have a material impact on our net earnings or cash flows. New accounting standards issued but not yet effective In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which was updated by subsequent amendments. This ASU replaces the current incurred loss model for measurement of credit losses on financial assets (including trade receivables) with a forward-looking expected loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance will be effective for us as of January 1, 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We do not expect any other recent accounting standards to have a material impact on our financial position, results of operations or cash flows. |
Company Overview
Company Overview | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Note 2 — Company Overview We are an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. We provide services and methodologies that we believe are critical to maximizing production economics. Our services cover the lifecycle of an offshore oil or gas field. We provide services primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions. Our “life of field” services are segregated into three reportable business segments: Well Intervention, Robotics and Production Facilities (Note 12). Our Well Intervention segment includes our vessels and/or equipment used to perform well intervention services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa. Our well intervention vessels include the Q4000 , the Q5000 , the Seawell , the Well Enhancer , and two chartered monohull vessels, the Siem H elix 1 and the Siem Helix 2 . We also have a semi-submersible well intervention vessel under completion, the Q7000 . Our well intervention equipment includes intervention riser systems (“IRSs”) and subsea intervention lubricators (“SILs”), some of which we provide on a stand-alone basis. Our Robotics segment includes remotely operated vehicles (“ROVs”), trenchers and a ROVDrill, which are designed to complement offshore construction and well intervention services, and three robotics support vessels under long-term charter: the Grand Canyon , the Grand Canyon II and the Grand Canyon III . We also utilize spot vessels as needed, including the Ross Candies , which is under a flexible charter agreement. Our Production Facilities segment includes the Helix Producer I (the “ HP I ”), a ship-shaped dynamically positioned floating production vessel, the Helix Fast Response System (the “HFRS”), our ownership interest in Independence Hub, LLC (“Independence Hub”) (Note 4), and several wells and related infrastructure associated with the Droshky Prospect that we acquired from Marathon Oil Corporation (“Marathon Oil”) on January 18, 2019. All of our current production facilities activities are located in the Gulf of Mexico. On May 29, 2019, we acquired a 70% controlling interest in Subsea Technologies Group Limited (“STL”), a subsea engineering firm based in Aberdeen, Scotland, for $5.1 million , including $4.1 million in cash and $1.0 million that we loaned to STL in December 2018. The acquisition is expected to strengthen our supply of subsea intervention systems. The holders of the remaining 30% noncontrolling interest have the right to put their shares to us in June 2024. These redeemable noncontrolling interests have been recognized as temporary equity at their estimated fair value of $3.4 million at the acquisition date. We recognized $2.4 million of identifiable intangible assets and $6.9 million of goodwill, which are reflected in “Other assets” in the accompanying condensed consolidated balance sheet (Note 3). Goodwill is related to the synergies expected from the acquisition. The ultimate fair values of acquired assets, liabilities and noncontrolling interests are provisional and pending final assessment of the valuations. STL is included in our Well Intervention segment (Note 12) and its revenue and earnings are immaterial to our consolidated results. |
Details Of Certain Accounts
Details Of Certain Accounts | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details Of Certain Accounts | Note 3 — Details of Certain Accounts Other current assets consist of the following (in thousands): September 30, December 31, Contract assets (Note 9) $ 580 $ 5,829 Prepaids 14,876 10,306 Deferred costs (Note 9) 26,424 27,368 Other receivable (Note 13) 13,000 — Other 6,871 8,091 Total other current assets $ 61,751 $ 51,594 Other assets, net consist of the following (in thousands): September 30, December 31, Prepaids $ 861 $ 5,896 Deferred recertification and dry dock costs, net 16,678 8,525 Deferred costs (Note 9) 20,695 38,574 Charter deposit (1) 12,544 12,544 Other receivable (Note 13) 26,702 — Goodwill (Note 2) 6,637 — Intangible assets with finite lives, net (Note 2) 3,703 1,402 Other 2,503 3,116 Total other assets, net $ 90,323 $ 70,057 (1) This amount is deposited with the owner of the Siem Helix 2 to offset certain payment obligations associated with the vessel at the end of the charter term. Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and related benefits $ 25,853 $ 43,079 Investee losses in excess of investment (Note 4) 7,638 5,125 Deferred revenue (Note 9) 10,814 10,103 Asset retirement obligations (Note 13) 11,556 — Derivative liability (Note 17) 2,723 9,311 Other 13,398 17,976 Total accrued liabilities $ 71,982 $ 85,594 Other non-current liabilities consist of the following (in thousands): September 30, December 31, Investee losses in excess of investment (Note 4) $ — $ 6,035 Deferred gain on sale of property (1) — 5,052 Deferred revenue (Note 9) 9,196 15,767 Asset retirement obligations (Note 13) 27,564 — Derivative liability (Note 17) — 884 Other 2,248 11,800 Total other non-current liabilities $ 39,008 $ 39,538 (1) Relates to the sale and lease-back in January 2016 of our office and warehouse property located in Aberdeen, Scotland. The deferred gain had been amortized over a 15 -year minimum lease term prior to our adoption of ASC 842 on January 1, 2019. See Note 1 for the effect of ASC 842 on this deferred gain. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 4 — Equity Method Investments We have a 20% ownership interest in Independence Hub that we account for using the equity method of accounting. Independence Hub owns the “Independence Hub” platform located in Mississippi Canyon Block 920 in the Gulf of Mexico in a water depth of 8,000 feet. We are committed to providing our pro-rata portion of financial support for Independence Hub to pay its obligations as they become due. The platform decommissioning process is currently underway and is expected to be substantially completed within the next 12 months. We had a liability of $7.6 million at September 30, 2019 and $11.2 million at December 31, 2018 for our share of Independence Hub’s estimated obligations, net of remaining working capital. This liability is reflected in “Accrued liabilities” and “Other non-current liabilities” in the accompanying condensed consolidated balance sheets. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 5 — Leases We charter vessels and lease facilities and equipment under non-cancelable contracts that expire on various dates through 2031. We also sublease some of our facilities under non-cancelable sublease agreements. Leases with a term greater than one year are recognized on our balance sheet as ROU assets and lease liabilities. We have elected to not recognize on our balance sheet leases with an initial term of one year or less. Lease liabilities and their corresponding ROU assets are recorded at the commencement date based on the present value of lease payments over the expected lease term. We use our incremental borrowing rate, which would be the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment, to calculate the present value of lease payments. ROU assets are adjusted for any initial direct costs paid or incentives received. We separate our long-term vessel charters between their lease components and non-lease services. We estimate the lease component using the residual estimate approach by estimating the non-lease services, which are primarily crew, repair and maintenance, and regulatory certification costs. For all other leases, we have not separated the lease components and non-lease services. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. We recognize operating lease cost on a straight-line basis over the lease term for both (i) leases that are recognized on the balance sheet and (ii) short-term leases. We recognize lease cost related to variable lease payments that are not recognized on the balance sheet in the period in which the obligation is incurred. The following table details the components of our lease cost (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 18,002 $ 54,191 Variable lease cost 3,630 9,927 Short-term lease cost 5,587 14,549 Sublease income (351 ) (1,077 ) Net lease cost $ 26,868 $ 77,590 Maturities of our operating lease liabilities as of September 30, 2019 are as follows (in thousands): Vessels Facilities and Equipment Total Remainder of 2019 $ 15,416 $ 1,717 $ 17,133 2020 59,942 6,391 66,333 2021 54,481 5,694 60,175 2022 52,105 5,103 57,208 2023 34,580 4,522 39,102 Thereafter 2,470 10,163 12,633 Total lease payments $ 218,994 $ 33,590 $ 252,584 Less: imputed interest (28,272 ) (6,711 ) (34,983 ) Total operating lease liabilities $ 190,722 $ 26,879 $ 217,601 Current operating lease liabilities $ 47,914 $ 4,926 $ 52,840 Non-current operating lease liabilities 142,808 21,953 164,761 Total operating lease liabilities $ 190,722 $ 26,879 $ 217,601 The following table presents the weighted average remaining lease term and discount rate: September 30, 2019 Weighted average remaining lease term 4.2 years Weighted average discount rate 7.54 % The following table presents other information related to our operating leases (in thousands): Nine Months Ended September 30, 2019 Cash paid for operating lease liabilities $ 54,538 ROU assets obtained in exchange for new operating lease obligations 921 As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, future minimum lease payments for our operating leases as of December 31, 2018 were as follows (in thousands): Vessels Facilities and Equipment Total 2019 $ 116,620 $ 5,881 $ 122,501 2020 96,800 5,340 102,140 2021 89,216 5,185 94,401 2022 90,371 5,064 95,435 2023 51,266 4,533 55,799 Thereafter — 10,448 10,448 Total lease payments $ 444,273 $ 36,451 $ 480,724 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 — Long-Term Debt Scheduled maturities of our long-term debt outstanding as of September 30, 2019 are as follows (in thousands): Term Loan (1) 2022 Notes 2023 Notes MARAD Debt Nordea Q5000 Loan Total Less than one year $ 3,500 $ — $ — $ 7,200 $ 98,214 $ 108,914 One to two years 3,500 — — 7,560 — 11,060 Two to three years 27,125 125,000 — 7,937 — 160,062 Three to four years — — 125,000 8,333 — 133,333 Four to five years — — — 8,749 — 8,749 Over five years — — — 23,831 — 23,831 Gross debt 34,125 125,000 125,000 63,610 98,214 445,949 Unamortized debt discounts (2) — (8,784 ) (15,376 ) — — (24,160 ) Unamortized debt issuance costs (3) (438 ) (1,368 ) (2,478 ) (3,659 ) (446 ) (8,389 ) Total debt 33,687 114,848 107,146 59,951 97,768 413,400 Less: current maturities (3,500 ) — — (7,200 ) (97,768 ) (108,468 ) Long-term debt $ 30,187 $ 114,848 $ 107,146 $ 52,751 $ — $ 304,932 (1) Term Loan pursuant to the Credit Agreement (as defined below) matures in December 2021. (2) Our Convertible Senior Notes due 2022 and 2023 will increase to their face amounts through accretion of their debt discounts to interest expense through May 2022 and September 2023, respectively. (3) Debt issuance costs are amortized to interest expense over the term of the applicable debt agreement. Below is a summary of certain components of our indebtedness: Credit Agreement On June 30, 2017, we entered into an Amended and Restated Credit Agreement (and the amendments made thereafter, collectively the “Credit Agreement”) with a group of lenders led by Bank of America, N.A. (“Bank of America”). On June 28, 2019, we amended our existing term loan (the “Term Loan”) and revolving credit facility (the “Revolving Credit Facility”) under the Credit Agreement. The Credit Agreement is comprised of a $35 million Term Loan and a Revolving Credit Facility of $175 million . The Revolving Credit Facility permits us to obtain letters of credit up to a sublimit of $25 million . Pursuant to the Credit Agreement, subject to existing lender participation and/or the participation of new lenders, and subject to standard conditions precedent, we may request aggregate commitments of up to $100 million with respect to an increase in the Revolving Credit Facility. As of September 30, 2019 , we had no borrowings under the Revolving Credit Facility, and our available borrowing capacity under that facility, based on the leverage ratios, totaled $172.6 million , net of $2.4 million of letters of credit issued under that facility. Borrowings under the Credit Agreement bear interest, at our election, at either Bank of America’s base rate, the LIBOR or a comparable successor rate, or a combination thereof. The Term Loan bearing interest at the base rate will bear interest at a per annum rate equal to Bank of America’s base rate plus a margin of 2.25% . The Term Loan bearing interest at a LIBOR rate will bear interest per annum at the LIBOR or a comparable successor rate selected by us plus a margin of 3.25% . The interest rate on the Term Loan was 5.29% as of September 30, 2019 . Borrowings under the Revolving Credit Facility bearing interest at the base rate will bear interest at a per annum rate equal to Bank of America’s base rate plus a margin ranging from 1.50% to 2.50% . Borrowings under the Revolving Credit Facility bearing interest at a LIBOR rate will bear interest per annum at the LIBOR or a comparable successor rate selected by us plus a margin ranging from 2.50% to 3.50% . A letter of credit fee is payable by us equal to the applicable margin for LIBOR rate loans multiplied by the daily amount available to be drawn under the applicable letter of credit. Margins on borrowings under the Revolving Credit Facility will vary in relation to the Consolidated Total Leverage Ratio (as defined below) as provided for in the Credit Agreement. We also pay a fixed commitment fee of 0.50% per annum on the unused portion of the Revolving Credit Facility. The Term Loan principal is required to be repaid in quarterly installments of 2.5% of the aggregate principal amount of the Term Loan, with a balloon payment at maturity. Installment amounts are subject to adjustment for any prepayments on the Term Loan. We may prepay indebtedness outstanding under the Term Loan without premium or penalty, but may not reborrow any amounts prepaid. We may prepay indebtedness outstanding under the Revolving Credit Facility without premium or penalty, and may reborrow any amounts prepaid up to the amount of the Revolving Credit Facility. Borrowings under the Credit Agreement mature on December 31, 2021. The Credit Agreement and the other documents entered into in connection with the Credit Agreement include terms and conditions, including covenants, which we consider customary for this type of transaction. The covenants include certain restrictions on our and certain of our subsidiaries’ ability to grant liens, incur indebtedness, make investments, merge or consolidate, sell or transfer assets, pay dividends and make capital expenditures. In addition, the Credit Agreement obligates us to meet minimum ratio requirements of EBITDA to interest charges (Consolidated Interest Coverage Ratio), funded debt to EBITDA (Consolidated Total Leverage Ratio) and secured funded debt to EBITDA (Consolidated Secured Leverage Ratio). We may designate one or more of our new foreign subsidiaries as subsidiaries not generally subject to the covenants in the Credit Agreement (the “Unrestricted Subsidiaries”). The debt and EBITDA of the Unrestricted Subsidiaries with the exception of Helix Q5000 Holdings, S.à r.l. (“Q5000 Holdings”), a wholly owned subsidiary incorporated in Luxembourg, are not included in the calculations of our financial covenants. Our obligations under the Credit Agreement, and those of our subsidiary guarantors under their guarantee, are secured by (i) most of the assets of the parent company, (ii) the shares of our domestic subsidiaries (other than Cal Dive I - Title XI, Inc.) and of Helix Robotics Solutions Limited (formerly known as Canyon Offshore Limited) and (iii) most of the assets of our domestic subsidiaries (other than Cal Dive I - Title XI, Inc.) and of Helix Robotics Solutions Limited. In addition, these obligations are secured by pledges of up to 66% of the shares of certain foreign subsidiaries. In March 2018, we prepaid $61 million of the then-existing term loan with a portion of the net proceeds from the 2023 Notes. We recognized a $0.9 million loss to write off the related unamortized debt issuance costs. In June 2019, in connection with the amendment of the Credit Agreement we wrote off the remaining unamortized debt issuance costs associated with a lender exiting the Credit Agreement. These losses are presented as “Loss on extinguishment of long-term debt” in the accompanying condensed consolidated statements of operations. In January 2019, contemporaneously with our purchase from Marathon Oil of several wells and related infrastructure associated with the Droshky Prospect located in offshore Gulf of Mexico Green Canyon Block 244, we amended the Credit Agreement to permit the issuance of certain security to third parties for required plug and abandonment (“P&A”) obligations and to make certain capital expenditures in connection with acquired assets (Notes 2 and 13). Convertible Senior Notes Due 2022 (“2022 Notes”) On November 1, 2016, we completed a public offering and sale of the 2022 Notes in the aggregate principal amount of $125 million . The 2022 Notes bear interest at a rate of 4.25% per annum and are payable semi-annually in arrears on November 1 and May 1 of each year, beginning on May 1, 2017. The 2022 Notes mature on May 1, 2022 unless earlier converted, redeemed or repurchased. During certain periods and subject to certain conditions, the 2022 Notes are convertible by the holders into shares of our common stock at an initial conversion rate of 71.9748 shares of our common stock per $1,000 principal amount (which represents an initial conversion price of approximately $13.89 per share of common stock), subject to adjustment in certain circumstances. We have the right and the intention to settle the principal amount of any such future conversions in cash. Prior to November 1, 2019, the 2022 Notes are not redeemable. On or after November 1, 2019, if certain conditions are met, we may redeem all or any portion of the 2022 Notes at a redemption price payable in cash equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest, and a “make-whole premium” (as defined in the indenture governing the 2022 Notes). Holders of the 2022 Notes may require us to repurchase the notes following a “fundamental change” (as defined in the indenture governing the 2022 Notes). The indenture governing the 2022 Notes contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the trustee under the indenture or the holders of not less than 25% in aggregate principal amount then outstanding under the 2022 Notes may declare the entire principal amount of all the notes, and the interest accrued on such notes, if any, to be immediately due and payable. In the case of certain events of bankruptcy, insolvency or reorganization relating to us or a significant subsidiary, the principal amount of the 2022 Notes together with any accrued and unpaid interest thereon will become immediately due and payable. The 2022 Notes are accounted for by separating the net proceeds between long-term debt and shareholders’ equity. In connection with the issuance of the 2022 Notes, we recorded a debt discount of $16.9 million ( $11.0 million net of tax) as a result of separating the equity component. The effective interest rate for the 2022 Notes is 7.3% after considering the effect of the accretion of the related debt discount that represented the equity component of the 2022 Notes at their inception. For the three- and nine- month periods ended September 30, 2019 , interest expense (including amortization of the debt discount) related to the 2022 Notes totaled $2.1 million and $6.2 million , respectively. For the three- and nine- month periods ended September 30, 2018 , interest expense (including amortization of the debt discount) related to the 2022 Notes totaled $2.0 million and $6.1 million , respectively. The remaining unamortized debt discount of the 2022 Notes was $8.8 million at September 30, 2019 and $11.0 million at December 31, 2018 . Convertible Senior Notes Due 2023 (“2023 Notes”) On March 20, 2018, we completed a public offering and sale of the 2023 Notes in the aggregate principal amount of $125 million . The net proceeds from the issuance of the 2023 Notes were approximately $121.0 million after deducting the underwriters’ discounts and commissions and estimated offering expenses. We used the net proceeds from the issuance of the 2023 Notes to fund the required repurchase by us of $59.3 million in principal of Convertible Senior Notes due 2032 (the “2032 Notes”) described below and to prepay $61.0 million of the then-existing term loan. The 2023 Notes bear interest at a rate of 4.125% per annum and are payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2018. The 2023 Notes mature on September 15, 2023 unless earlier converted, redeemed or repurchased. During certain periods and subject to certain conditions, the 2023 Notes are convertible by the holders into shares of our common stock at an initial conversion rate of 105.6133 shares of our common stock per $1,000 principal amount (which represents an initial conversion price of approximately $9.47 per share of common stock), subject to adjustment in certain circumstances. We have the right and the intention to settle the principal amount of any such future conversions in cash. Prior to March 15, 2021, the 2023 Notes are not redeemable. On or after March 15, 2021, if certain conditions are met, we may redeem all or any portion of the 2023 Notes at a redemption price payable in cash equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest, and a “make-whole premium” (as defined in the indenture governing the 2023 Notes). Holders of the 2023 Notes may require us to repurchase the notes following a “fundamental change” (as defined in the indenture governing the 2023 Notes). The indenture governing the 2023 Notes contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the trustee under the indenture or the holders of not less than 25% in aggregate principal amount then outstanding under the 2023 Notes may declare the entire principal amount of all the notes, and the interest accrued on such notes, if any, to be immediately due and payable. In the case of certain events of bankruptcy, insolvency or reorganization relating to us or a significant subsidiary, the principal amount of the 2023 Notes together with any accrued and unpaid interest thereon will become immediately due and payable. The 2023 Notes are accounted for by separating the net proceeds between long-term debt and shareholders’ equity. In connection with the issuance of the 2023 Notes, we recorded a debt discount of $20.1 million ( $15.9 million net of tax) as a result of separating the equity component. The effective interest rate for the 2023 Notes is 7.8% after considering the effect of the accretion of the related debt discount that represented the equity component of the 2023 Notes at their inception. For the three- and nine- month periods ended September 30, 2019 , interest expense (including amortization of the debt discount) related to the 2023 Notes totaled $2.1 million and $6.3 million , respectively. For the three- and nine- month periods ended September 30, 2018 , interest expense (including amortization of the debt discount) related to the 2023 Notes totaled $2.1 million and $4.3 million , respectively. The remaining unamortized debt discount of the 2023 Notes was $15.4 million at September 30, 2019 and $17.8 million at December 31, 2018 . MARAD Debt This U.S. government-guaranteed financing (the “MARAD Debt”), pursuant to Title XI of the Merchant Marine Act of 1936 administered by the Maritime Administration, was used to finance the construction of the Q4000 . The MARAD Debt is collateralized by the Q4000 and is guaranteed 50% by us. The MARAD Debt is payable in equal semi-annual installments, matures in February 2027 and bears interest at a rate of 4.93% . Nordea Credit Agreement In September 2014, Q5000 Holdings entered into a credit agreement (the “Nordea Credit Agreement”) with a syndicated bank lending group for a term loan (the “Nordea Q5000 Loan”) in an amount of up to $250 million . The Nordea Q5000 Loan was funded in the amount of $250 million in April 2015 at the time the Q5000 was delivered to us. The parent company of Q5000 Holdings, Helix Vessel Finance S.à r.l., also a wholly owned Luxembourg subsidiary, guaranteed the Nordea Q5000 Loan. The loan is secured by the Q5000 and its charter earnings as well as by a pledge of the shares of Q5000 Holdings. This indebtedness is non-recourse to Helix. The Nordea Q5000 Loan bears interest at a LIBOR rate plus a margin of 2.5% . The Nordea Q5000 Loan matures on April 30, 2020 and is repayable in scheduled quarterly principal installments of $8.9 million with a balloon payment of $80.4 million at maturity. The remaining principal balance and unamortized debt issuance costs related to the Nordea Q5000 Loan are classified as current. Q5000 Holdings may elect to prepay indebtedness outstanding under the Nordea Q5000 Loan without premium or penalty, but may not reborrow any amounts prepaid. Quarterly principal installments are subject to adjustment for any prepayments on this debt. In June 2015, we entered into interest rate swap contracts to fix the one-month LIBOR rate on a portion of our borrowings under the Nordea Q5000 Loan (Note 17). The total notional amount of the swaps (initially $187.5 million ) decreases in proportion to the reduction in the principal amount outstanding under the Nordea Q5000 Loan. The fixed LIBOR rates are approximately 150 basis points. The Nordea Credit Agreement and related loan documents include terms and conditions, including covenants and prepayment requirements, that we consider customary for this type of transaction. The covenants include restrictions on Q5000 Holdings’s ability to grant liens, incur indebtedness, make investments, merge or consolidate, sell or transfer assets, and pay dividends. In addition, the Nordea Credit Agreement obligates Q5000 Holdings to meet certain minimum financial requirements, including liquidity, consolidated debt service coverage and collateral maintenance. Convertible Senior Notes Due 2032 In March 2012, we issued $200 million of 3.25% Convertible Senior Notes, which were originally scheduled to mature on March 15, 2032. In March 2018, we made a tender offer for the repurchase of the 2032 Notes outstanding on the first repurchase date as required by the indenture governing the 2032 Notes, and as a result we repurchased $59.3 million in aggregate principal amount of the 2032 Notes on March 20, 2018. The total repurchase price was $59.5 million , including $0.2 million in fees. We recognized a $0.2 million loss in connection with the repurchase of the 2032 Notes. The loss is presented as “Loss on extinguishment of long-term debt” in the accompanying condensed consolidated statement of operations. On May 4, 2018, we redeemed the remaining $0.8 million in aggregate principal amount of the 2032 Notes. Other In accordance with the Credit Agreement, the 2022 Notes, the 2023 Notes, the MARAD Debt agreements and the Nordea Credit Agreement, we are required to comply with certain covenants, including with respect to the Credit Agreement, certain financial ratios such as a consolidated interest coverage ratio, a consolidated total leverage ratio and a consolidated secured leverage ratio, as well as the maintenance of minimum cash balance, net worth, working capital and debt-to-equity requirements. As of September 30, 2019 , we were in compliance with these covenants. The following table details the components of our net interest expense (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest expense $ 7,694 $ 8,171 $ 23,635 $ 24,511 Interest income (652 ) (994 ) (2,085 ) (2,263 ) Capitalized interest (5,141 ) (3,928 ) (15,346 ) (11,504 ) Net interest expense $ 1,901 $ 3,249 $ 6,204 $ 10,744 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes We believe that our recorded deferred tax assets and liabilities are reasonable. However, tax laws and regulations are subject to interpretation, and the outcomes of tax disputes are inherently uncertain; therefore, our assessments can involve a series of complex judgments about future events and rely heavily on estimates and assumptions. The effective tax rates for the three- and nine- month periods ended September 30, 2019 were 10.1% and 11.9% , respectively. The effective tax rates for the three- and nine- month periods ended September 30, 2018 were 3.0% and 2.8% , respectively. The increases were primarily attributable to improvements in profitability in the U.S. year over year. Income taxes are provided based on the U.S. statutory rate and the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the U.S. statutory rate and our effective rate are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 U.S. statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Foreign provision (10.1 ) (18.5 ) (9.7 ) (19.1 ) Other (0.8 ) 0.5 0.6 0.9 Effective rate 10.1 % 3.0 % 11.9 % 2.8 % |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Note 8 — Shareholders’ Equity The components of accumulated other comprehensive loss (“accumulated OCI”) are as follows (in thousands): September 30, December 31, Cumulative foreign currency translation adjustment $ (74,419 ) $ (69,855 ) Net unrealized loss on hedges, net of tax (1) (781 ) (4,109 ) Accumulated OCI $ (75,200 ) $ (73,964 ) (1) Relates to foreign currency hedges for the Grand Canyon II and Grand Canyon III charters as well as interest rate swap contracts for the Nordea Q5000 Loan (Note 17) and is net of deferred income taxes totaling $0.2 million at September 30, 2019 and $1.0 million at December 31, 2018 . |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | Note 9 — Revenue from Contracts with Customers Disaggregation of Revenue Our revenues are derived primarily from short-term and long-term service contracts with customers. Our service contracts generally contain either provisions for specific time, material and equipment charges that are billed in accordance with the terms of such contracts (dayrate contracts) or lump sum payment provisions (lump sum contracts). We record revenues net of taxes collected from customers and remitted to governmental authorities. The following table provides information about disaggregated revenue by contract duration (in thousands): Well Intervention Robotics Production Facilities Intercompany Eliminations (1) Total Revenue Three months ended September 30, 2019 Short-term $ 53,018 $ 26,809 $ — $ — $ 79,827 Long-term (2) 117,188 25,100 13,777 (23,283 ) 132,782 Total $ 170,206 $ 51,909 $ 13,777 $ (23,283 ) $ 212,609 Three months ended September 30, 2018 Short-term $ 39,548 $ 29,877 $ — $ — $ 69,425 Long-term (2) 114,893 24,463 15,877 (12,083 ) 143,150 Total $ 154,441 $ 54,340 $ 15,877 $ (12,083 ) $ 212,575 Nine months ended September 30, 2019 Short-term $ 145,611 $ 80,440 $ — $ — $ 226,051 Long-term (2) 305,900 55,956 44,651 (51,398 ) 355,109 Total $ 451,511 $ 136,396 $ 44,651 $ (51,398 ) $ 581,160 Nine months ended September 30, 2018 Short-term $ 143,510 $ 74,050 $ — $ — $ 217,560 Long-term (2) 302,259 46,519 48,541 (33,417 ) 363,902 Total $ 445,769 $ 120,569 $ 48,541 $ (33,417 ) $ 581,462 (1) Intercompany revenues among our business segments are under agreements that are considered long-term. (2) Contracts are classified as long-term if all or part of the contract is to be performed over a period extending beyond 12 months from the effective date of the contract. Long-term contracts may include multi-year agreements whereby the commitment for services in any one year may be short in duration. Contract Balances Accounts receivable are recognized when our right to consideration becomes unconditional. Accounts receivable that have been billed to customers are recorded as trade accounts receivable while accounts receivable that have not been billed to customers are recorded as unbilled accounts receivable. Contract assets are rights to consideration in exchange for services that we have provided to a customer when those rights are conditioned on our future performance. Contract assets generally consist of (i) demobilization fees recognized ratably over the contract term but invoiced upon completion of the demobilization activities and (ii) revenue recognized in excess of the amount billed to the customer for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract assets are reflected in “Other current assets” on the accompanying condensed consolidated balance sheets (Note 3). Contract assets were $0.6 million at September 30, 2019 and $5.8 million at December 31, 2018 . We incurred no impairment losses on our accounts receivable and contract assets for the three- and nine- month periods ended September 30, 2019 and 2018 . Contract liabilities are obligations to provide future services to a customer for which we have already received, or have the unconditional right to receive, the consideration for those services from the customer. Contract liabilities may consist of (i) advance payments received from customers, including upfront mobilization fees allocated to a single performance obligation and recognized ratably over the contract term and/or (ii) amounts billed to the customer in excess of revenue recognized for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract liabilities are reflected as “Deferred revenue,” a component of “Accrued liabilities” and “Other non-current liabilities” on the accompanying condensed consolidated balance sheets (Note 3). Contract liabilities totaled $20.0 million at September 30, 2019 and $25.9 million at December 31, 2018 . Revenue recognized for the three- and nine- month periods ended September 30, 2019 included $4.0 million and $7.4 million , respectively, that were included in the contract liability balance at the beginning of each period. Revenue recognized for the three- and nine- month periods ended September 30, 2018 included $7.4 million and $10.8 million , respectively, that were included in the contract liability balance at the beginning of each period. We report the net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Performance Obligations As of September 30, 2019 , $833.8 million related to unsatisfied performance obligations was expected to be recognized as revenue in the future, with $114.5 million in 2019, $443.2 million in 2020 and $276.1 million in 2021 and thereafter. These amounts include fixed consideration and estimated variable consideration for both wholly and partially unsatisfied performance obligations, including mobilization and demobilization fees. These amounts are derived from the specific terms of our contracts, and the expected timing for revenue recognition is based on the estimated start date and duration of each contract according to the information known at September 30, 2019 . For the three- and nine- month periods ended September 30, 2019 and 2018 , revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were immaterial. Contract Fulfillment Costs Contract fulfillment costs consist of costs incurred in fulfilling a contract with a customer. Our contract fulfillment costs primarily relate to costs incurred for mobilization of personnel and equipment at the beginning of a contract and costs incurred for demobilization at the end of a contract. Mobilization costs are deferred and amortized ratably over the contract term (including anticipated contract extensions) based on the pattern of the provision of services to which the contract fulfillment costs relate. Demobilization costs are recognized when incurred at the end of the contract. Deferred contract costs are reflected as “Deferred costs,” a component of “Other current assets” and “Other assets, net” on the accompanying condensed consolidated balance sheets (Note 3). Our deferred contract costs totaled $47.1 million at September 30, 2019 and $65.9 million at December 31, 2018 . For the three- and nine- month periods ended September 30, 2019 , we recorded $7.7 million and $23.6 million , respectively, related to amortization of deferred contract costs existing at the beginning of each period. For the three- and nine- month periods ended September 30, 2018 , we recorded $8.5 million and $25.6 million , respectively, related to amortization of deferred contract costs existing at the beginning of each period. There were no associated impairment losses for any period presented. For additional information regarding revenue recognition, see Notes 2 and 10 to our 2018 Form 10-K. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10 — Earnings Per Share We have shares of restricted stock issued and outstanding that are currently unvested. Shares of restricted stock are considered participating securities because holders of shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our unrestricted common stock. We are required to compute earnings per share (“EPS”) under the two-class method in periods in which we have earnings. Under the two-class method, the undistributed earnings for each period are allocated based on the participation rights of both common shareholders and the holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. For periods in which we have a net loss we do not use the two-class method as holders of our restricted shares are not obligated to share in such losses. The presentation of basic EPS on the face of the accompanying condensed consolidated statements of operations is computed by dividing net income or loss by the weighted average shares of our common stock outstanding. The calculation of diluted EPS is similar to that for basic EPS, except that the denominator includes dilutive common stock equivalents and the numerator excludes the effects of dilutive common stock equivalents, if any. The computations of the numerator (income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended Income Shares Income Shares Basic: Net income attributable to common shareholders $ 31,695 $ 27,121 Less: Undistributed earnings allocated to participating securities (261 ) (260 ) Accretion of redeemable noncontrolling interests (25 ) — Net income available to common shareholders, basic $ 31,409 147,575 $ 26,861 146,700 Diluted: Net income available to common shareholders, basic $ 31,409 147,575 $ 26,861 146,700 Effect of dilutive securities: Share-based awards other than participating securities — 779 — 264 Undistributed earnings reallocated to participating securities 1 — — — Net income available to common shareholders, diluted $ 31,410 148,354 $ 26,861 146,964 Nine Months Ended Nine Months Ended Income Shares Income Shares Basic: Net income attributable to common shareholders $ 49,867 $ 42,345 Less: Undistributed earnings allocated to participating securities (435 ) (407 ) Accretion of redeemable noncontrolling interests (43 ) — Net income available to common shareholders, basic $ 49,389 147,506 $ 41,938 146,679 Diluted: Net income available to common shareholders, basic $ 49,389 147,506 $ 41,938 146,679 Effect of dilutive securities: Share-based awards other than participating securities — 580 — 82 Undistributed earnings reallocated to participating securities 2 — — — Net income available to common shareholders, diluted $ 49,391 148,086 $ 41,938 146,761 The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2032 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 2022 Notes 8,997 8,997 8,997 8,997 2023 Notes 13,202 13,202 13,202 9,381 2032 Notes (1) — — — 701 (1) The 2032 Notes were fully redeemed in May 2018. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Note 11 — Employee Benefit Plans Long-Term Incentive Plan We currently have one active long-term incentive plan: the 2005 Long-Term Incentive Plan, as amended and restated (the “2005 Incentive Plan”). On May 15, 2019, our shareholders approved an amendment to and restatement of the 2005 Incentive Plan to: (i) authorize 7.0 million additional shares for issuance pursuant to our equity incentive compensation strategy, (ii) establish a maximum award limit applicable to independent members of our Board of Directors (our “Board”) under the 2005 Incentive Plan, (iii) require, subject to certain exceptions, that all awards under the 2005 Incentive Plan have a minimum vesting or restriction period of one year and (iv) remove certain requirements with respect to performance-based compensation under Section 162(m) of the Internal Revenue Code that were repealed by the U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”). As of September 30, 2019 , there were 8.5 million shares of our common stock available for issuance under the 2005 Incentive Plan. During the nine -month period ended September 30, 2019 , the following grants of share-based awards were made under the 2005 Incentive Plan: Date of Grant Shares/ Units Grant Date Fair Value Per Share/Unit Vesting Period January 2, 2019 (1) 688,540 $ 5.41 33% per year over three years January 2, 2019 (2) 688,540 7.60 100% on January 2, 2022 January 2, 2019 (3) 11,841 5.41 100% on January 1, 2021 April 1, 2019 (3) 7,625 7.91 100% on January 1, 2021 July 1, 2019 (3) 8,727 8.63 100% on January 1, 2021 August 1, 2019 (4) 7,151 8.76 100% on August 1, 2020 (1) Reflects grants of restricted stock to our executive officers and select management employees. (2) Reflects grants of performance share units (“PSUs”) to our executive officers and select management employees. The PSUs provide for an award based on the performance of our common stock over a three -year period with the maximum amount of the award being 200% of the original PSU awards and the minimum amount being zero . (3) Reflects grants of restricted stock to certain independent members of our Board who have elected to take their quarterly fees in stock in lieu of cash. (4) Reflects a grant of restricted stock made to a new independent member of our Board upon her joining our Board. Compensation cost for restricted stock is the product of the grant date fair value of each share and the number of shares granted and is recognized over the applicable vesting period on a straight-line basis. Forfeitures are recognized as they occur. For the three- and nine- month periods ended September 30, 2019 , $1.2 million and $4.9 million respectively, were recognized as share-based compensation related to restricted stock. For the three- and nine- month periods ended September 30, 2018 , $1.5 million and $4.5 million , respectively, were recognized as share-based compensation related to restricted stock. The estimated fair value of PSUs is determined using a Monte Carlo simulation model. PSUs granted prior to 2017 could be settled in either cash or shares of our common stock and were accounted for as liability awards. Beginning in 2017, PSUs granted are to be settled solely in shares of our common stock and therefore are accounted for as equity awards. Compensation cost for PSUs that are accounted for as equity awards is measured based on the estimated grant date fair value and recognized over the vesting period on a straight-line basis as an increase to equity. For the three- and nine- month periods ended September 30, 2019 , $1.2 million and $3.9 million , respectively, were recognized as share-based compensation related to PSUs. For the three- and nine- month periods ended September 30, 2018 , $6.3 million and $11.5 million , respectively, were recognized as share-based compensation related to PSUs. The liability balance for previously unvested PSUs granted in January 2016 was $11.1 million at December 31, 2018 , which we settled in cash when those PSUs vested in January 2019. Additionally in 2019 and 2018, we granted fixed-value cash awards of $4.6 million and $5.2 million , respectively, to select management employees under the 2005 Incentive Plan. The value of fixed value cash awards is recognized on a straight-line basis over a vesting period of three years . For the three- and nine- month periods ended September 30, 2019 , $0.8 million and $2.4 million , respectively, were recognized as compensation cost. For the three- and nine- month periods ended September 30, 2018 , $0.5 million and $1.3 million , respectively, were recognized as compensation cost. Employee Stock Purchase Plan We have an employee stock purchase plan (the “ESPP”). On May 15, 2019, our shareholders approved an amendment to and restatement of the ESPP to: (i) increase the shares authorized for issuance by 1.5 million shares and (ii) delegate to an internal administrator the authority to establish the maximum shares purchasable during a purchase period. As of September 30, 2019 , 2.0 million shares were available for issuance under the ESPP. The ESPP currently has a purchase limit of 260 shares per employee per purchase period. For more information regarding our employee benefit plans, including the 2005 Incentive Plan and the ESPP, see Note 12 to our 2018 Form 10-K. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 12 — Business Segment Information We have three reportable business segments: Well Intervention, Robotics and Production Facilities. Our U.S., U.K. and Brazil well intervention operating segments are aggregated into the Well Intervention business segment for financial reporting purposes. Our Well Intervention segment includes our vessels and/or equipment used to perform well intervention services primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa. Our well intervention vessels include the Q4000 , the Q5000 , the Seawell , the Well Enhancer , and the chartered Siem Helix 1 and Siem Helix 2 vessels. Our well intervention equipment includes IRSs and SILs, some of which we provide on a stand-alone basis. Our Robotics segment includes ROVs, trenchers and a ROVDrill, which are designed to complement offshore construction and well intervention services, three robotics support vessels under long-term charter: the Grand Canyon , the Grand Canyon II and the Grand Canyon III , and spot vessels, including the Ross Candies, which is under a flexible charter agreement. Our Production Facilities segment includes the HP I , the HFRS, our ownership interest in Independence Hub (Note 4) and our ownership of certain oil and gas properties that we acquired from Marathon Oil in January 2019 (Note 13). All material intercompany transactions between the segments have been eliminated. We evaluate our performance based on operating income of each reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenues — Well Intervention $ 170,206 $ 154,441 $ 451,511 $ 445,769 Robotics 51,909 54,340 136,396 120,569 Production Facilities 13,777 15,877 44,651 48,541 Intercompany eliminations (23,283 ) (12,083 ) (51,398 ) (33,417 ) Total $ 212,609 $ 212,575 $ 581,160 $ 581,462 Income (loss) from operations — Well Intervention $ 37,689 $ 34,427 $ 74,002 $ 82,774 Robotics 8,876 5,601 7,921 (12,818 ) Production Facilities 3,050 6,694 11,907 20,919 Segment operating income 49,615 46,722 93,830 90,875 Corporate, eliminations and other (10,617 ) (15,345 ) (31,491 ) (35,842 ) Total $ 38,998 $ 31,377 $ 62,339 $ 55,033 Intercompany segment amounts are derived primarily from equipment and services provided to other business segments at rates consistent with those charged to third parties. Intercompany segment revenues are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Well Intervention (1) $ 15,318 $ 4,379 $ 28,355 $ 10,546 Robotics 7,965 7,704 23,043 22,871 Total $ 23,283 $ 12,083 $ 51,398 $ 33,417 (1) Amounts in the three- and nine- month periods ended September 30, 2019 included $10.6 million and $15.9 million , respectively, associated with P&A work on the Droshky wells for our Production Facilities segment (Notes 2 and 13). Upon completion of the P&A work Marathon Oil is contractually obligated to remit payment to us. Segment assets are comprised of all assets attributable to each reportable segment. Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents. The following table reflects total assets by reportable segment (in thousands): September 30, December 31, Well Intervention $ 2,133,205 $ 1,916,638 Robotics 183,125 147,602 Production Facilities 159,225 120,845 Corporate and other 137,956 162,645 Total $ 2,613,511 $ 2,347,730 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 13 — Asset Retirement Obligations Our asset retirement obligations (“AROs”) consist of estimated costs for subsea infrastructure P&A activities. The estimated costs are discounted to present value using a credit-adjusted risk-free discount rate. After its initial recognition, an ARO liability is increased for the passage of time as accretion expense, which is a component of our depreciation and amortization expense. An ARO liability may also change based on revisions in estimated costs and/or timing to settle the obligations. The following table describes the changes in our AROs (both current and long-term) (in thousands): AROs at January 1, 2019 $ — Liability incurred during the period (1) 53,294 Liability settled during the period (15,944 ) Accretion expense 1,770 AROs at September 30, 2019 $ 39,120 (1) In connection with the acquisition on January 18, 2019 of certain assets related to the Droshky Prospect (Note 2), we assumed the AROs for the required P&A of those assets in exchange for agreed-upon amounts to be paid by Marathon Oil as the P&A work is completed. We initially recognized $53.3 million of ARO liability, $50.8 million of receivables and $2.5 million of acquired property for this transaction. |
Commitments And Contingencies A
Commitments And Contingencies And Other Matters | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies And Other Matters | Note 14 — Commitments and Contingencies and Other Matters Commitments We have long-term charter agreements with Siem Offshore AS (“Siem”) for the Siem Helix 1 and Siem Helix 2 vessels used in connection with our contracts with Petróleo Brasileiro S.A. (“Petrobras”) to perform well intervention work offshore Brazil. The initial term of the charter agreements with Siem is for seven years from the respective vessel delivery dates with options to extend. We have long-term charter agreements for the Grand Canyon , Grand Canyon II and Grand Canyon III vessels for use in our robotics operations. The charter agreements expire in October 2019 for the Grand Canyon , in April 2021 for the Grand Canyon II and in May 2023 for the Grand Canyon III . In September 2013, we entered into a contract for the construction of a newbuild semi-submersible well intervention vessel, the Q7000 , to be built to North Sea standards. Pursuant to the contract and subsequent amendments, 20% of the contract price was paid upon the signing of the contract, 20% was paid in each of 2016, 2017 and 2018, and the remaining 20% is due upon the delivery of the vessel. We have informed the shipyard of our intent to take delivery of the vessel in November 2019. At September 30, 2019 , our total investment in the Q7000 was $446.4 million , including $276.8 million of installment payments to the shipyard. The vessel is currently in the final preparation phase for work expected to commence in early 2020. Contingencies and Claims We believe that there are currently no contingencies that would have a material adverse effect on our financial position, results of operations and cash flows. Litigation We are involved in various legal proceedings, some involving claims for personal injury under the General Maritime Laws of the United States and the Jones Act. In addition, from time to time we receive other claims, such as contract and employment-related disputes, in the normal course of business. |
Statement Of Cash Flow Informat
Statement Of Cash Flow Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Statement Of Cash Flow Information | Note 15 — Statement of Cash Flow Information We define cash and cash equivalents as cash and all highly liquid financial instruments with original maturities of three months or less. The following table provides supplemental cash flow information (in thousands): Nine Months Ended 2019 2018 Interest paid, net of interest capitalized $ 2,404 $ 6,620 Income taxes paid 7,535 4,699 Our non-cash investing activities include the acquisition of property and equipment for which payment has not been made. These non-cash capital additions totaled $14.0 million at September 30, 2019 and $9.9 million at December 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 — Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value accounting rules establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 — Observable inputs such as quoted prices in active markets; • Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 — Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of three valuation approaches as follows: (a) Market Approach — Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. (b) Cost Approach — Amount that would be required to replace the service capacity of an asset (replacement cost). (c) Income Approach — Techniques to convert expected future cash flows to a single present amount based on market expectations (including present value techniques, option-pricing and excess earnings models). Our financial instruments include cash and cash equivalents, receivables, accounts payable, long-term debt and derivative instruments. The carrying amount of cash and cash equivalents, trade and other current receivables as well as accounts payable approximates fair value due to the short-term nature of these instruments. The fair value of our derivative instruments (Note 17) reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation, volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. The following tables provide additional information relating to those financial instruments measured at fair value on a recurring basis (in thousands): Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Total Valuation Approach Assets: Interest rate swaps $ — $ 108 $ — $ 108 (c) Liabilities: Foreign exchange contracts — hedging instruments — 1,089 — 1,089 (c) Foreign exchange contracts — non-hedging instruments — 1,634 — 1,634 (c) Total net liability $ — $ 2,615 $ — $ 2,615 Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Total Valuation Approach Assets: Interest rate swaps $ — $ 1,064 $ — $ 1,064 (c) Liabilities: Foreign exchange contracts — hedging instruments — 6,211 — 6,211 (c) Foreign exchange contracts — non-hedging instruments — 3,984 — 3,984 (c) Total net liability $ — $ 9,131 $ — $ 9,131 The principal amount and estimated fair value of our long-term debt are as follows (in thousands): September 30, 2019 December 31, 2018 Principal Amount (1) Fair Value (2) (3) Principal Amount (1) Fair Value (2) (3) Term Loan (previously scheduled to mature June 2020) $ — $ — $ 33,693 $ 33,314 Term Loan (matures December 2021) 34,125 33,698 — — Nordea Q5000 Loan (matures April 2020) 98,214 98,214 125,000 122,500 MARAD Debt (matures February 2027) 63,610 68,972 70,468 74,406 2022 Notes (mature May 2022) 125,000 126,094 125,000 114,298 2023 Notes (mature September 2023) 125,000 146,719 125,000 114,688 Total debt $ 445,949 $ 473,697 $ 479,161 $ 459,206 (1) Principal amount includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2022 Notes and the 2023 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the term loans, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. (3) The principal amount and estimated fair value of the 2022 Notes and the 2023 Notes are for the entire instrument inclusive of the conversion feature reported in shareholders’ equity. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | Note 17 — Derivative Instruments and Hedging Activities Our business is exposed to market risks associated with interest rates and foreign currency exchange rates. Our risk management activities involve the use of derivative financial instruments to mitigate the impact of market risk exposure related to variable interest rates and foreign currency exchange rates. To reduce the impact of these risks on earnings and increase the predictability of our cash flows, from time to time we enter into certain derivative contracts, including interest rate swaps and foreign currency exchange contracts. All derivative instruments are reflected in the accompanying condensed consolidated balance sheets at fair value. We engage solely in cash flow hedges. Cash flow hedges are entered into to hedge the variability of cash flows related to a forecasted transaction or to be received or paid related to a recognized asset or liability. Changes in the fair value of derivative instruments that are designated as cash flow hedges are reported in OCI. These changes are subsequently reclassified into earnings when the hedged transactions affect earnings. Changes in the fair value of a derivative instrument that does not qualify for hedge accounting are recorded in earnings in the period in which the change occurs. For additional information regarding our accounting for derivative instruments and hedging activities, see Notes 2 and 18 to our 2018 Form 10-K. Interest Rate Risk From time to time, we enter into interest rate swaps to stabilize cash flows related to our long-term variable interest rate debt. In June 2015 we entered into interest rate swap contracts to fix the interest rate on $187.5 million of the Nordea Q5000 Loan (Note 6). These swap contracts, which are settled monthly, began in June 2015 and extend through April 2020. Our interest rate swap contracts qualify for cash flow hedge accounting treatment. Changes in the fair value of interest rate swaps are reported in accumulated OCI (net of tax). These changes are subsequently reclassified into earnings when the anticipated interest is recognized as interest expense. Foreign Currency Exchange Rate Risk Because we operate in various regions around the world, we conduct a portion of our business in currencies other than the U.S. dollar. We enter into foreign currency exchange contracts from time to time to stabilize expected cash outflows related to our vessel charters that are denominated in foreign currencies. In February 2013, we entered into foreign currency exchange contracts to hedge our foreign currency exposure associated with the Grand Canyon II and Grand Canyon III charter payments denominated in Norwegian kroner through July 2019 and February 2020, respectively. Unrealized losses associated with our foreign currency exchange contracts that qualify for hedge accounting treatment are included in accumulated OCI (net of tax). Changes in unrealized losses associated with the foreign currency exchange contracts that are not designated as cash flow hedges are reflected in “Other expense, net” in the accompanying condensed consolidated statements of operations. Quantitative Disclosures Relating to Derivative Instruments The following table presents the balance sheet location and fair value of our derivative instruments that were designated as hedging instruments (in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Asset Derivative Instruments: Interest rate swaps Other current assets $ 108 Other current assets $ 863 Interest rate swaps Other assets, net — Other assets, net 201 $ 108 $ 1,064 Liability Derivative Instruments: Foreign exchange contracts Accrued liabilities $ 1,089 Accrued liabilities $ 5,857 Foreign exchange contracts Other non-current liabilities — Other non-current liabilities 354 $ 1,089 $ 6,211 The following table presents the balance sheet location and fair value of our derivative instruments that were not designated as hedging instruments (in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Liability Derivative Instruments: Foreign exchange contracts Accrued liabilities $ 1,634 Accrued liabilities $ 3,454 Foreign exchange contracts Other non-current liabilities — Other non-current liabilities 530 $ 1,634 $ 3,984 The following tables present the impact that derivative instruments designated as hedging instruments had on our accumulated OCI (net of tax) and our condensed consolidated statements of operations (in thousands). We estimate that as of September 30, 2019 , $0.8 million of net losses in accumulated OCI associated with our derivative instruments is expected to be reclassified into earnings within the next 12 months. Unrealized Gain (Loss) Recognized in OCI Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts $ (280 ) $ (164 ) $ (338 ) $ (35 ) Interest rate swaps 6 76 (363 ) 874 $ (274 ) $ (88 ) $ (701 ) $ 839 Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings Gain (Loss) Reclassified from Accumulated OCI into Earnings Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts Cost of sales $ (1,197 ) $ (1,957 ) $ (5,460 ) $ (5,538 ) Interest rate swaps Net interest expense 151 158 593 305 $ (1,046 ) $ (1,799 ) $ (4,867 ) $ (5,233 ) The following table presents the impact that derivative instruments not designated as hedging instruments had on our condensed consolidated statements of operations (in thousands): Location of Loss Recognized in Earnings Loss Recognized in Earnings Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts Other expense, net $ (371 ) $ (83 ) $ (413 ) $ (26 ) $ (371 ) $ (83 ) $ (413 ) $ (26 ) |
Basis Of Presentation And New_2
Basis Of Presentation And New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, Helix). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements have been prepared pursuant to instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”) and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The accompanying condensed consolidated financial statements have been prepared in conformity with GAAP in U.S. dollars and are consistent in all material respects with those applied in our 2018 Annual Report on Form 10-K (“ 2018 Form 10-K”) with the exception of the impact of adopting the new lease accounting standard in 2019 (see below). The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments, which, unless otherwise disclosed, are of normal recurring nature, that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income and statements of cash flows, as applicable. The operating results for the three- and nine- month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . Our balance sheet as of December 31, 2018 included herein has been derived from the audited balance sheet as of December 31, 2018 included in our 2018 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto included in our 2018 Form 10-K. |
Reclassifications | Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. |
New Accounting Standards | New accounting standards adopted In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASC 842”), which was updated by subsequent amendments. ASC 842 requires a lessee to recognize a lease right-of-use asset and related lease liability for most leases, including those classified as operating leases. ASC 842 also changes the definition of a lease and requires expanded quantitative and qualitative disclosures for both lessees and lessors. We adopted ASC 842 in the first quarter of 2019 using the modified retrospective method. We also elected the package of practical expedients permitted under the transition guidance that, among other things, allows companies to carry forward their historical lease classification. Our adoption of ASC 842 resulted in the recognition of operating lease liabilities of $259.0 million and corresponding right-of-use (“ROU”) assets of $253.4 million (net of existing prepaid/deferred rent balances) as of January 1, 2019. In addition, we reclassified the remaining deferred gain of $4.6 million (net of deferred taxes of $0.9 million ) on a 2016 sale and leaseback transaction to retained earnings. Subsequent to adoption, leases in foreign currencies will generate foreign currency gains and losses, and we will no longer amortize the deferred gain from the aforementioned sale and leaseback transaction. Aside from these changes, ASC 842 is not expected to have a material impact on our net earnings or cash flows. New accounting standards issued but not yet effective In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which was updated by subsequent amendments. This ASU replaces the current incurred loss model for measurement of credit losses on financial assets (including trade receivables) with a forward-looking expected loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance will be effective for us as of January 1, 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We do not expect any other recent accounting standards to have a material impact on our financial position, results of operations or cash flows. |
Details Of Certain Accounts (Ta
Details Of Certain Accounts (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of other current assets | Other current assets consist of the following (in thousands): September 30, December 31, Contract assets (Note 9) $ 580 $ 5,829 Prepaids 14,876 10,306 Deferred costs (Note 9) 26,424 27,368 Other receivable (Note 13) 13,000 — Other 6,871 8,091 Total other current assets $ 61,751 $ 51,594 |
Schedule of other assets, net | Other assets, net consist of the following (in thousands): September 30, December 31, Prepaids $ 861 $ 5,896 Deferred recertification and dry dock costs, net 16,678 8,525 Deferred costs (Note 9) 20,695 38,574 Charter deposit (1) 12,544 12,544 Other receivable (Note 13) 26,702 — Goodwill (Note 2) 6,637 — Intangible assets with finite lives, net (Note 2) 3,703 1,402 Other 2,503 3,116 Total other assets, net $ 90,323 $ 70,057 (1) This amount is deposited with the owner of the Siem Helix 2 to offset certain payment obligations associated with the vessel at the end of the charter term. |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): September 30, December 31, Accrued payroll and related benefits $ 25,853 $ 43,079 Investee losses in excess of investment (Note 4) 7,638 5,125 Deferred revenue (Note 9) 10,814 10,103 Asset retirement obligations (Note 13) 11,556 — Derivative liability (Note 17) 2,723 9,311 Other 13,398 17,976 Total accrued liabilities $ 71,982 $ 85,594 |
Schedule of other non-current liabilities | Other non-current liabilities consist of the following (in thousands): September 30, December 31, Investee losses in excess of investment (Note 4) $ — $ 6,035 Deferred gain on sale of property (1) — 5,052 Deferred revenue (Note 9) 9,196 15,767 Asset retirement obligations (Note 13) 27,564 — Derivative liability (Note 17) — 884 Other 2,248 11,800 Total other non-current liabilities $ 39,008 $ 39,538 (1) Relates to the sale and lease-back in January 2016 of our office and warehouse property located in Aberdeen, Scotland. The deferred gain had been amortized over a 15 -year minimum lease term prior to our adoption of ASC 842 on January 1, 2019. See Note 1 for the effect of ASC 842 on this deferred gain. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of components of lease cost | We recognize operating lease cost on a straight-line basis over the lease term for both (i) leases that are recognized on the balance sheet and (ii) short-term leases. We recognize lease cost related to variable lease payments that are not recognized on the balance sheet in the period in which the obligation is incurred. The following table details the components of our lease cost (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 18,002 $ 54,191 Variable lease cost 3,630 9,927 Short-term lease cost 5,587 14,549 Sublease income (351 ) (1,077 ) Net lease cost $ 26,868 $ 77,590 |
Schedule of maturities of operating lease liabilities | Maturities of our operating lease liabilities as of September 30, 2019 are as follows (in thousands): Vessels Facilities and Equipment Total Remainder of 2019 $ 15,416 $ 1,717 $ 17,133 2020 59,942 6,391 66,333 2021 54,481 5,694 60,175 2022 52,105 5,103 57,208 2023 34,580 4,522 39,102 Thereafter 2,470 10,163 12,633 Total lease payments $ 218,994 $ 33,590 $ 252,584 Less: imputed interest (28,272 ) (6,711 ) (34,983 ) Total operating lease liabilities $ 190,722 $ 26,879 $ 217,601 Current operating lease liabilities $ 47,914 $ 4,926 $ 52,840 Non-current operating lease liabilities 142,808 21,953 164,761 Total operating lease liabilities $ 190,722 $ 26,879 $ 217,601 |
Schedule of weighted average remaining lease term and discount rate | The following table presents the weighted average remaining lease term and discount rate: September 30, 2019 Weighted average remaining lease term 4.2 years Weighted average discount rate 7.54 % |
Schedule of other information related to operating leases | The following table presents other information related to our operating leases (in thousands): Nine Months Ended September 30, 2019 Cash paid for operating lease liabilities $ 54,538 ROU assets obtained in exchange for new operating lease obligations 921 |
Schedule of future minimum operating lease payments | As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, future minimum lease payments for our operating leases as of December 31, 2018 were as follows (in thousands): Vessels Facilities and Equipment Total 2019 $ 116,620 $ 5,881 $ 122,501 2020 96,800 5,340 102,140 2021 89,216 5,185 94,401 2022 90,371 5,064 95,435 2023 51,266 4,533 55,799 Thereafter — 10,448 10,448 Total lease payments $ 444,273 $ 36,451 $ 480,724 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of maturities of long-term debt outstanding | Scheduled maturities of our long-term debt outstanding as of September 30, 2019 are as follows (in thousands): Term Loan (1) 2022 Notes 2023 Notes MARAD Debt Nordea Q5000 Loan Total Less than one year $ 3,500 $ — $ — $ 7,200 $ 98,214 $ 108,914 One to two years 3,500 — — 7,560 — 11,060 Two to three years 27,125 125,000 — 7,937 — 160,062 Three to four years — — 125,000 8,333 — 133,333 Four to five years — — — 8,749 — 8,749 Over five years — — — 23,831 — 23,831 Gross debt 34,125 125,000 125,000 63,610 98,214 445,949 Unamortized debt discounts (2) — (8,784 ) (15,376 ) — — (24,160 ) Unamortized debt issuance costs (3) (438 ) (1,368 ) (2,478 ) (3,659 ) (446 ) (8,389 ) Total debt 33,687 114,848 107,146 59,951 97,768 413,400 Less: current maturities (3,500 ) — — (7,200 ) (97,768 ) (108,468 ) Long-term debt $ 30,187 $ 114,848 $ 107,146 $ 52,751 $ — $ 304,932 (1) Term Loan pursuant to the Credit Agreement (as defined below) matures in December 2021. (2) Our Convertible Senior Notes due 2022 and 2023 will increase to their face amounts through accretion of their debt discounts to interest expense through May 2022 and September 2023, respectively. (3) Debt issuance costs are amortized to interest expense over the term of the applicable debt agreement. |
Schedule of components of net interest expense | The following table details the components of our net interest expense (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest expense $ 7,694 $ 8,171 $ 23,635 $ 24,511 Interest income (652 ) (994 ) (2,085 ) (2,263 ) Capitalized interest (5,141 ) (3,928 ) (15,346 ) (11,504 ) Net interest expense $ 1,901 $ 3,249 $ 6,204 $ 10,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between U.S. statutory rate and effective rate | Income taxes are provided based on the U.S. statutory rate and the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the U.S. statutory rate and our effective rate are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 U.S. statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Foreign provision (10.1 ) (18.5 ) (9.7 ) (19.1 ) Other (0.8 ) 0.5 0.6 0.9 Effective rate 10.1 % 3.0 % 11.9 % 2.8 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of accumulated OCI | The components of accumulated other comprehensive loss (“accumulated OCI”) are as follows (in thousands): September 30, December 31, Cumulative foreign currency translation adjustment $ (74,419 ) $ (69,855 ) Net unrealized loss on hedges, net of tax (1) (781 ) (4,109 ) Accumulated OCI $ (75,200 ) $ (73,964 ) (1) Relates to foreign currency hedges for the Grand Canyon II and Grand Canyon III charters as well as interest rate swap contracts for the Nordea Q5000 Loan (Note 17) and is net of deferred income taxes totaling $0.2 million at September 30, 2019 and $1.0 million at December 31, 2018 . |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Our revenues are derived primarily from short-term and long-term service contracts with customers. Our service contracts generally contain either provisions for specific time, material and equipment charges that are billed in accordance with the terms of such contracts (dayrate contracts) or lump sum payment provisions (lump sum contracts). We record revenues net of taxes collected from customers and remitted to governmental authorities. The following table provides information about disaggregated revenue by contract duration (in thousands): Well Intervention Robotics Production Facilities Intercompany Eliminations (1) Total Revenue Three months ended September 30, 2019 Short-term $ 53,018 $ 26,809 $ — $ — $ 79,827 Long-term (2) 117,188 25,100 13,777 (23,283 ) 132,782 Total $ 170,206 $ 51,909 $ 13,777 $ (23,283 ) $ 212,609 Three months ended September 30, 2018 Short-term $ 39,548 $ 29,877 $ — $ — $ 69,425 Long-term (2) 114,893 24,463 15,877 (12,083 ) 143,150 Total $ 154,441 $ 54,340 $ 15,877 $ (12,083 ) $ 212,575 Nine months ended September 30, 2019 Short-term $ 145,611 $ 80,440 $ — $ — $ 226,051 Long-term (2) 305,900 55,956 44,651 (51,398 ) 355,109 Total $ 451,511 $ 136,396 $ 44,651 $ (51,398 ) $ 581,160 Nine months ended September 30, 2018 Short-term $ 143,510 $ 74,050 $ — $ — $ 217,560 Long-term (2) 302,259 46,519 48,541 (33,417 ) 363,902 Total $ 445,769 $ 120,569 $ 48,541 $ (33,417 ) $ 581,462 (1) Intercompany revenues among our business segments are under agreements that are considered long-term. (2) Contracts are classified as long-term if all or part of the contract is to be performed over a period extending beyond 12 months from the effective date of the contract. Long-term contracts may include multi-year agreements whereby the commitment for services in any one year may be short in duration. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computations of basic and diluted EPS | The presentation of basic EPS on the face of the accompanying condensed consolidated statements of operations is computed by dividing net income or loss by the weighted average shares of our common stock outstanding. The calculation of diluted EPS is similar to that for basic EPS, except that the denominator includes dilutive common stock equivalents and the numerator excludes the effects of dilutive common stock equivalents, if any. The computations of the numerator (income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended Income Shares Income Shares Basic: Net income attributable to common shareholders $ 31,695 $ 27,121 Less: Undistributed earnings allocated to participating securities (261 ) (260 ) Accretion of redeemable noncontrolling interests (25 ) — Net income available to common shareholders, basic $ 31,409 147,575 $ 26,861 146,700 Diluted: Net income available to common shareholders, basic $ 31,409 147,575 $ 26,861 146,700 Effect of dilutive securities: Share-based awards other than participating securities — 779 — 264 Undistributed earnings reallocated to participating securities 1 — — — Net income available to common shareholders, diluted $ 31,410 148,354 $ 26,861 146,964 Nine Months Ended Nine Months Ended Income Shares Income Shares Basic: Net income attributable to common shareholders $ 49,867 $ 42,345 Less: Undistributed earnings allocated to participating securities (435 ) (407 ) Accretion of redeemable noncontrolling interests (43 ) — Net income available to common shareholders, basic $ 49,389 147,506 $ 41,938 146,679 Diluted: Net income available to common shareholders, basic $ 49,389 147,506 $ 41,938 146,679 Effect of dilutive securities: Share-based awards other than participating securities — 580 — 82 Undistributed earnings reallocated to participating securities 2 — — — Net income available to common shareholders, diluted $ 49,391 148,086 $ 41,938 146,761 |
Schedule of shares excluded from diluted EPS calculation | The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2032 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 2022 Notes 8,997 8,997 8,997 8,997 2023 Notes 13,202 13,202 13,202 9,381 2032 Notes (1) — — — 701 (1) The 2032 Notes were fully redeemed in May 2018. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of grants of share-based awards | We currently have one active long-term incentive plan: the 2005 Long-Term Incentive Plan, as amended and restated (the “2005 Incentive Plan”). On May 15, 2019, our shareholders approved an amendment to and restatement of the 2005 Incentive Plan to: (i) authorize 7.0 million additional shares for issuance pursuant to our equity incentive compensation strategy, (ii) establish a maximum award limit applicable to independent members of our Board of Directors (our “Board”) under the 2005 Incentive Plan, (iii) require, subject to certain exceptions, that all awards under the 2005 Incentive Plan have a minimum vesting or restriction period of one year and (iv) remove certain requirements with respect to performance-based compensation under Section 162(m) of the Internal Revenue Code that were repealed by the U.S. Tax Cuts and Jobs Act (the “2017 Tax Act”). As of September 30, 2019 , there were 8.5 million shares of our common stock available for issuance under the 2005 Incentive Plan. During the nine -month period ended September 30, 2019 , the following grants of share-based awards were made under the 2005 Incentive Plan: Date of Grant Shares/ Units Grant Date Fair Value Per Share/Unit Vesting Period January 2, 2019 (1) 688,540 $ 5.41 33% per year over three years January 2, 2019 (2) 688,540 7.60 100% on January 2, 2022 January 2, 2019 (3) 11,841 5.41 100% on January 1, 2021 April 1, 2019 (3) 7,625 7.91 100% on January 1, 2021 July 1, 2019 (3) 8,727 8.63 100% on January 1, 2021 August 1, 2019 (4) 7,151 8.76 100% on August 1, 2020 (1) Reflects grants of restricted stock to our executive officers and select management employees. (2) Reflects grants of performance share units (“PSUs”) to our executive officers and select management employees. The PSUs provide for an award based on the performance of our common stock over a three -year period with the maximum amount of the award being 200% of the original PSU awards and the minimum amount being zero . (3) Reflects grants of restricted stock to certain independent members of our Board who have elected to take their quarterly fees in stock in lieu of cash. (4) Reflects a grant of restricted stock made to a new independent member of our Board upon her joining our Board. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of financial data by reportable segment | We evaluate our performance based on operating income of each reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenues — Well Intervention $ 170,206 $ 154,441 $ 451,511 $ 445,769 Robotics 51,909 54,340 136,396 120,569 Production Facilities 13,777 15,877 44,651 48,541 Intercompany eliminations (23,283 ) (12,083 ) (51,398 ) (33,417 ) Total $ 212,609 $ 212,575 $ 581,160 $ 581,462 Income (loss) from operations — Well Intervention $ 37,689 $ 34,427 $ 74,002 $ 82,774 Robotics 8,876 5,601 7,921 (12,818 ) Production Facilities 3,050 6,694 11,907 20,919 Segment operating income 49,615 46,722 93,830 90,875 Corporate, eliminations and other (10,617 ) (15,345 ) (31,491 ) (35,842 ) Total $ 38,998 $ 31,377 $ 62,339 $ 55,033 |
Schedule of intercompany segment revenues | Intercompany segment amounts are derived primarily from equipment and services provided to other business segments at rates consistent with those charged to third parties. Intercompany segment revenues are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Well Intervention (1) $ 15,318 $ 4,379 $ 28,355 $ 10,546 Robotics 7,965 7,704 23,043 22,871 Total $ 23,283 $ 12,083 $ 51,398 $ 33,417 (1) Amounts in the three- and nine- month periods ended September 30, 2019 included $10.6 million and $15.9 million , respectively, associated with P&A work on the Droshky wells for our Production Facilities segment (Notes 2 and 13). Upon completion of the P&A work Marathon Oil is contractually obligated to remit payment to us. |
Schedule of total assets by reportable segment | Segment assets are comprised of all assets attributable to each reportable segment. Corporate and other includes all assets not directly identifiable with our business segments, most notably the majority of our cash and cash equivalents. The following table reflects total assets by reportable segment (in thousands): September 30, December 31, Well Intervention $ 2,133,205 $ 1,916,638 Robotics 183,125 147,602 Production Facilities 159,225 120,845 Corporate and other 137,956 162,645 Total $ 2,613,511 $ 2,347,730 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of asset retirement obligations | The following table describes the changes in our AROs (both current and long-term) (in thousands): AROs at January 1, 2019 $ — Liability incurred during the period (1) 53,294 Liability settled during the period (15,944 ) Accretion expense 1,770 AROs at September 30, 2019 $ 39,120 (1) In connection with the acquisition on January 18, 2019 of certain assets related to the Droshky Prospect (Note 2), we assumed the AROs for the required P&A of those assets in exchange for agreed-upon amounts to be paid by Marathon Oil as the P&A work is completed. We initially recognized $53.3 million of ARO liability, $50.8 million of receivables and $2.5 million of acquired property for this transaction. |
Statement Of Cash Flow Inform_2
Statement Of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | We define cash and cash equivalents as cash and all highly liquid financial instruments with original maturities of three months or less. The following table provides supplemental cash flow information (in thousands): Nine Months Ended 2019 2018 Interest paid, net of interest capitalized $ 2,404 $ 6,620 Income taxes paid 7,535 4,699 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on a recurring basis | Our financial instruments include cash and cash equivalents, receivables, accounts payable, long-term debt and derivative instruments. The carrying amount of cash and cash equivalents, trade and other current receivables as well as accounts payable approximates fair value due to the short-term nature of these instruments. The fair value of our derivative instruments (Note 17) reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation, volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. The following tables provide additional information relating to those financial instruments measured at fair value on a recurring basis (in thousands): Fair Value at September 30, 2019 Level 1 Level 2 Level 3 Total Valuation Approach Assets: Interest rate swaps $ — $ 108 $ — $ 108 (c) Liabilities: Foreign exchange contracts — hedging instruments — 1,089 — 1,089 (c) Foreign exchange contracts — non-hedging instruments — 1,634 — 1,634 (c) Total net liability $ — $ 2,615 $ — $ 2,615 Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Total Valuation Approach Assets: Interest rate swaps $ — $ 1,064 $ — $ 1,064 (c) Liabilities: Foreign exchange contracts — hedging instruments — 6,211 — 6,211 (c) Foreign exchange contracts — non-hedging instruments — 3,984 — 3,984 (c) Total net liability $ — $ 9,131 $ — $ 9,131 |
Schedule of principal amount and estimated fair value of long-term debt | The principal amount and estimated fair value of our long-term debt are as follows (in thousands): September 30, 2019 December 31, 2018 Principal Amount (1) Fair Value (2) (3) Principal Amount (1) Fair Value (2) (3) Term Loan (previously scheduled to mature June 2020) $ — $ — $ 33,693 $ 33,314 Term Loan (matures December 2021) 34,125 33,698 — — Nordea Q5000 Loan (matures April 2020) 98,214 98,214 125,000 122,500 MARAD Debt (matures February 2027) 63,610 68,972 70,468 74,406 2022 Notes (mature May 2022) 125,000 126,094 125,000 114,298 2023 Notes (mature September 2023) 125,000 146,719 125,000 114,688 Total debt $ 445,949 $ 473,697 $ 479,161 $ 459,206 (1) Principal amount includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2022 Notes and the 2023 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the term loans, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. (3) The principal amount and estimated fair value of the 2022 Notes and the 2023 Notes are for the entire instrument inclusive of the conversion feature reported in shareholders’ equity. |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet location and fair value of derivative instruments designated as hedging instruments | The following table presents the balance sheet location and fair value of our derivative instruments that were designated as hedging instruments (in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Asset Derivative Instruments: Interest rate swaps Other current assets $ 108 Other current assets $ 863 Interest rate swaps Other assets, net — Other assets, net 201 $ 108 $ 1,064 Liability Derivative Instruments: Foreign exchange contracts Accrued liabilities $ 1,089 Accrued liabilities $ 5,857 Foreign exchange contracts Other non-current liabilities — Other non-current liabilities 354 $ 1,089 $ 6,211 |
Schedule of balance sheet location and fair value of derivative instruments not designated as hedging instruments | The following table presents the balance sheet location and fair value of our derivative instruments that were not designated as hedging instruments (in thousands): September 30, 2019 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Liability Derivative Instruments: Foreign exchange contracts Accrued liabilities $ 1,634 Accrued liabilities $ 3,454 Foreign exchange contracts Other non-current liabilities — Other non-current liabilities 530 $ 1,634 $ 3,984 |
Schedule of unrealized gain (loss) recognized in OCI | The following tables present the impact that derivative instruments designated as hedging instruments had on our accumulated OCI (net of tax) and our condensed consolidated statements of operations (in thousands). We estimate that as of September 30, 2019 , $0.8 million of net losses in accumulated OCI associated with our derivative instruments is expected to be reclassified into earnings within the next 12 months. Unrealized Gain (Loss) Recognized in OCI Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts $ (280 ) $ (164 ) $ (338 ) $ (35 ) Interest rate swaps 6 76 (363 ) 874 $ (274 ) $ (88 ) $ (701 ) $ 839 |
Schedule of gain (loss) reclassified from Accumulated OCI into earnings | Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings Gain (Loss) Reclassified from Accumulated OCI into Earnings Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts Cost of sales $ (1,197 ) $ (1,957 ) $ (5,460 ) $ (5,538 ) Interest rate swaps Net interest expense 151 158 593 305 $ (1,046 ) $ (1,799 ) $ (4,867 ) $ (5,233 ) |
Schedule of impact of derivative instruments not designated as hedging instruments on condensed consolidated statements of operations | The following table presents the impact that derivative instruments not designated as hedging instruments had on our condensed consolidated statements of operations (in thousands): Location of Loss Recognized in Earnings Loss Recognized in Earnings Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign exchange contracts Other expense, net $ (371 ) $ (83 ) $ (413 ) $ (26 ) $ (371 ) $ (83 ) $ (413 ) $ (26 ) |
Basis Of Presentation And New_3
Basis Of Presentation And New Accounting Standards - New Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 217,601 | ||
Operating lease right-of-use assets | $ 213,048 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 259,000 | ||
Operating lease right-of-use assets | 253,400 | ||
Retained Earnings | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred gain on sale and leaseback transaction | 4,600 | ||
Tax effect of deferred gain on sale and leaseback transaction | $ 900 |
Company Overview (Details)
Company Overview (Details) | 9 Months Ended |
Sep. 30, 2019segmentvessel | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Well Intervention | |
Segment Reporting Information [Line Items] | |
Number of long-term chartered vessels | 2 |
Robotics | |
Segment Reporting Information [Line Items] | |
Number of long-term chartered vessels | 3 |
Company Overview - STL Acquisit
Company Overview - STL Acquisition (Details) - USD ($) $ in Thousands | May 29, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||||
Cash paid for business acquisition | $ 4,081 | $ 0 | ||
STL | ||||
Business Acquisition [Line Items] | ||||
Controlling interest acquired, ownership percentage | 70.00% | |||
Total Consideration for business acquisition | $ 5,100 | |||
Cash paid for business acquisition | $ 4,100 | |||
Other payment for business acquisition | $ 1,000 | |||
Redeemable noncontrolling interests, ownership percentage | 30.00% | |||
Redeemable noncontrolling interests recognized | $ 3,400 | |||
Intangible assets recognized | $ 2,400 | |||
Goodwill recognized | $ 6,900 |
Details Of Certain Accounts - O
Details Of Certain Accounts - Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract assets (Note 9) | $ 580 | $ 5,829 |
Prepaids | 14,876 | 10,306 |
Deferred costs (Note 9) | 26,424 | 27,368 |
Other receivable (Note 13) | 13,000 | 0 |
Other | 6,871 | 8,091 |
Total other current assets | $ 61,751 | $ 51,594 |
Details Of Certain Accounts -_2
Details Of Certain Accounts - Other Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaids | $ 861 | $ 5,896 |
Deferred recertification and dry dock costs, net | 16,678 | 8,525 |
Deferred costs (Note 9) | 20,695 | 38,574 |
Charter deposit | 12,544 | 12,544 |
Other receivable (Note 13) | 26,702 | 0 |
Goodwill (Note 2) | 6,637 | 0 |
Intangible assets with finite lives, net (Note 2) | 3,703 | 1,402 |
Other | 2,503 | 3,116 |
Total other assets, net | $ 90,323 | $ 70,057 |
Details Of Certain Accounts - A
Details Of Certain Accounts - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and related benefits | $ 25,853 | $ 43,079 |
Investee losses in excess of investment (Note 4) | 7,638 | 5,125 |
Deferred revenue (Note 9) | 10,814 | 10,103 |
Asset retirement obligations (Note 13) | 11,556 | 0 |
Derivative liability (Note 17) | 2,723 | 9,311 |
Other | 13,398 | 17,976 |
Total accrued liabilities | $ 71,982 | $ 85,594 |
Details Of Certain Accounts -_3
Details Of Certain Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investee losses in excess of investment (Note 4) | $ 0 | $ 6,035 |
Deferred gain on sale of property | 0 | 5,052 |
Deferred revenue (Note 9) | 9,196 | 15,767 |
Asset retirement obligations (Note 13) | 27,564 | 0 |
Derivative liability (Note 17) | 0 | 884 |
Other | 2,248 | 11,800 |
Total other non-current liabilities | $ 39,008 | $ 39,538 |
Term of lease agreement | 15 years |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - Independence Hub, LLC $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($)ft | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Water depth | ft | 8,000 | |
Investee losses in excess of investment | $ | $ 7.6 | $ 11.2 |
Leases - Components Of Lease Co
Leases - Components Of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 18,002 | $ 54,191 |
Variable lease cost | 3,630 | 9,927 |
Short-term lease cost | 5,587 | 14,549 |
Sublease income | (351) | (1,077) |
Net lease cost | $ 26,868 | $ 77,590 |
Leases - Maturities Of Operatin
Leases - Maturities Of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2019 | $ 17,133 | |
2020 | 66,333 | |
2021 | 60,175 | |
2022 | 57,208 | |
2023 | 39,102 | |
Thereafter | 12,633 | |
Total lease payments | 252,584 | |
Less: imputed interest | (34,983) | |
Total operating lease liabilities | 217,601 | |
Current operating lease liabilities | 52,840 | $ 0 |
Non-current operating lease liabilities | 164,761 | $ 0 |
Vessels | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2019 | 15,416 | |
2020 | 59,942 | |
2021 | 54,481 | |
2022 | 52,105 | |
2023 | 34,580 | |
Thereafter | 2,470 | |
Total lease payments | 218,994 | |
Less: imputed interest | (28,272) | |
Total operating lease liabilities | 190,722 | |
Current operating lease liabilities | 47,914 | |
Non-current operating lease liabilities | 142,808 | |
Facilities and Equipment | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2019 | 1,717 | |
2020 | 6,391 | |
2021 | 5,694 | |
2022 | 5,103 | |
2023 | 4,522 | |
Thereafter | 10,163 | |
Total lease payments | 33,590 | |
Less: imputed interest | (6,711) | |
Total operating lease liabilities | 26,879 | |
Current operating lease liabilities | 4,926 | |
Non-current operating lease liabilities | $ 21,953 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term And Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 4 years 2 months 12 days |
Weighted average discount rate (as a percent) | 7.54% |
Leases - Other Information Rela
Leases - Other Information Related To Operating Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 54,538 |
ROU assets obtained in exchange for new operating lease obligations | $ 921 |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 122,501 |
2020 | 102,140 |
2021 | 94,401 |
2022 | 95,435 |
2023 | 55,799 |
Thereafter | 10,448 |
Total lease payments | 480,724 |
Vessels | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | 116,620 |
2020 | 96,800 |
2021 | 89,216 |
2022 | 90,371 |
2023 | 51,266 |
Thereafter | 0 |
Total lease payments | 444,273 |
Facilities and Equipment | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | 5,881 |
2020 | 5,340 |
2021 | 5,185 |
2022 | 5,064 |
2023 | 4,533 |
Thereafter | 10,448 |
Total lease payments | $ 36,451 |
Long-Term Debt - Maturities Of
Long-Term Debt - Maturities Of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 28, 2019 | Dec. 31, 2018 | Mar. 20, 2018 | Nov. 01, 2016 |
Debt Instrument [Line Items] | |||||
Less than one year | $ 108,914 | ||||
One to two years | 11,060 | ||||
Two to three years | 160,062 | ||||
Three to four years | 133,333 | ||||
Four to five years | 8,749 | ||||
Over five years | 23,831 | ||||
Gross debt | 445,949 | ||||
Unamortized debt discounts | (24,160) | ||||
Unamortized debt issuance costs | (8,389) | ||||
Total debt | 413,400 | ||||
Less: current maturities | (108,468) | $ (47,252) | |||
Long-term debt | 304,932 | 393,063 | |||
Term Loan Maturing December 2021 | |||||
Debt Instrument [Line Items] | |||||
Less than one year | 3,500 | ||||
One to two years | 3,500 | ||||
Two to three years | 27,125 | ||||
Three to four years | 0 | ||||
Four to five years | 0 | ||||
Over five years | 0 | ||||
Gross debt | 34,125 | $ 35,000 | 0 | ||
Unamortized debt discounts | 0 | ||||
Unamortized debt issuance costs | (438) | ||||
Total debt | 33,687 | ||||
Less: current maturities | (3,500) | ||||
Long-term debt | 30,187 | ||||
Convertible Senior Notes Maturing May 2022 | |||||
Debt Instrument [Line Items] | |||||
Less than one year | 0 | ||||
One to two years | 0 | ||||
Two to three years | 125,000 | ||||
Three to four years | 0 | ||||
Four to five years | 0 | ||||
Over five years | 0 | ||||
Gross debt | 125,000 | 125,000 | $ 125,000 | ||
Unamortized debt discounts | (8,784) | (11,000) | $ (16,900) | ||
Unamortized debt issuance costs | (1,368) | ||||
Total debt | 114,848 | ||||
Less: current maturities | 0 | ||||
Long-term debt | 114,848 | ||||
Convertible Senior Notes Maturing September 2023 | |||||
Debt Instrument [Line Items] | |||||
Less than one year | 0 | ||||
One to two years | 0 | ||||
Two to three years | 0 | ||||
Three to four years | 125,000 | ||||
Four to five years | 0 | ||||
Over five years | 0 | ||||
Gross debt | 125,000 | 125,000 | $ 125,000 | ||
Unamortized debt discounts | (15,376) | (17,800) | $ (20,100) | ||
Unamortized debt issuance costs | (2,478) | ||||
Total debt | 107,146 | ||||
Less: current maturities | 0 | ||||
Long-term debt | 107,146 | ||||
MARAD Debt Maturing February 2027 | |||||
Debt Instrument [Line Items] | |||||
Less than one year | 7,200 | ||||
One to two years | 7,560 | ||||
Two to three years | 7,937 | ||||
Three to four years | 8,333 | ||||
Four to five years | 8,749 | ||||
Over five years | 23,831 | ||||
Gross debt | 63,610 | 70,468 | |||
Unamortized debt discounts | 0 | ||||
Unamortized debt issuance costs | (3,659) | ||||
Total debt | 59,951 | ||||
Less: current maturities | (7,200) | ||||
Long-term debt | 52,751 | ||||
Nordea Q5000 Loan Maturing April 2020 | |||||
Debt Instrument [Line Items] | |||||
Less than one year | 98,214 | ||||
One to two years | 0 | ||||
Two to three years | 0 | ||||
Three to four years | 0 | ||||
Four to five years | 0 | ||||
Over five years | 0 | ||||
Gross debt | 98,214 | $ 125,000 | |||
Unamortized debt discounts | 0 | ||||
Unamortized debt issuance costs | (446) | ||||
Total debt | 97,768 | ||||
Less: current maturities | (97,768) | ||||
Long-term debt | $ 0 |
Long-Term Debt - Credit Agreeme
Long-Term Debt - Credit Agreement (Details) - USD ($) | Jun. 28, 2019 | Jun. 30, 2017 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 445,949,000 | $ 445,949,000 | ||||||
Repayment of term loan | 34,567,000 | $ 62,872,000 | ||||||
Loss on extinguishment of long-term debt | 0 | $ (2,000) | (18,000) | $ (1,183,000) | ||||
Term Loan Maturing December 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 35,000,000 | $ 34,125,000 | $ 34,125,000 | $ 0 | ||||
Interest rate (as a percent) | 5.29% | 5.29% | ||||||
Frequency of periodic payment | quarterly | |||||||
Periodic principal payment (as a percent) | 2.50% | |||||||
Term Loan Maturing December 2021 | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||||
Term Loan Maturing December 2021 | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 3.25% | |||||||
Revolving Credit Facility Maturing December 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 175,000,000 | |||||||
Additional commitments (up to) | $ 100,000,000 | |||||||
Available borrowing capacity | $ 172,600,000 | $ 172,600,000 | ||||||
Letters of credit issued | 2,400,000 | 2,400,000 | ||||||
Commitment fee percentage | 0.50% | |||||||
Revolving Credit Facility Maturing December 2021 | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Revolving Credit Facility Maturing December 2021 | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||
Revolving Credit Facility Maturing December 2021 | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||
Revolving Credit Facility Maturing December 2021 | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 3.50% | |||||||
Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 25,000,000 | |||||||
Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Dec. 31, 2021 | |||||||
Credit Agreement | Collateral Pledged | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum percent of shares of foreign subsidiaries | 66.00% | |||||||
Term Loan Maturing June 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 0 | $ 0 | $ 33,693,000 | |||||
Repayment of term loan | $ 61,000,000 | |||||||
Loss on extinguishment of long-term debt | $ (900,000) |
Long-Term Debt - Convertible Se
Long-Term Debt - Convertible Senior Notes Due 2022 (Details) $ / shares in Units, $ in Thousands | Nov. 01, 2016USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Principal amount | $ 445,949 | $ 445,949 | ||||
Unamortized debt discount | 24,160 | 24,160 | ||||
Interest expense | 7,694 | $ 8,171 | 23,635 | $ 24,511 | ||
Convertible Senior Notes Maturing May 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 125,000 | 125,000 | 125,000 | $ 125,000 | ||
Interest rate (as a percent) | 4.25% | |||||
Frequency of periodic payment | semi-annually | |||||
Maturity date | May 1, 2022 | |||||
Initial conversion ratio | 0.0719748 | |||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 13.89 | |||||
Redemption price as a percentage of principal amount | 100.00% | |||||
Minimum percentage in aggregate principal amount | 25.00% | |||||
Unamortized debt discount | $ 16,900 | 8,784 | 8,784 | $ 11,000 | ||
Carrying amount of equity component | $ 11,000 | |||||
Effective interest rate (as a percent) | 7.30% | |||||
Interest expense | $ 2,100 | $ 2,000 | $ 6,200 | $ 6,100 |
Long-Term Debt - Convertible _2
Long-Term Debt - Convertible Senior Notes Due 2023 (Details) $ / shares in Units, $ in Thousands | Mar. 20, 2018USD ($)$ / shares | Mar. 31, 2018USD ($) | Mar. 31, 2012USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | May 04, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 445,949 | $ 445,949 | |||||||
Repayment of term loan | 34,567 | $ 62,872 | |||||||
Unamortized debt discount | 24,160 | 24,160 | |||||||
Interest expense | 7,694 | $ 8,171 | 23,635 | 24,511 | |||||
Convertible Senior Notes Maturing September 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 125,000 | 125,000 | 125,000 | $ 125,000 | |||||
Net proceeds from debt issuance | $ 121,000 | ||||||||
Interest rate (as a percent) | 4.125% | ||||||||
Frequency of periodic payment | semi-annually | ||||||||
Maturity date | Sep. 15, 2023 | ||||||||
Initial conversion ratio | 0.1056133 | ||||||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 9.47 | ||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||
Minimum percentage in aggregate principal amount | 25.00% | ||||||||
Unamortized debt discount | $ 20,100 | 15,376 | 15,376 | 17,800 | |||||
Carrying amount of equity component | $ 15,900 | ||||||||
Effective interest rate (as a percent) | 7.80% | ||||||||
Interest expense | 2,100 | $ 2,100 | 6,300 | $ 4,300 | |||||
Convertible Senior Notes Maturing March 2032 (Redeemed May 2018) | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 200,000 | ||||||||
Repurchased principal amount | $ 59,300 | $ 800 | |||||||
Interest rate (as a percent) | 3.25% | ||||||||
Maturity date | Mar. 15, 2032 | ||||||||
Term Loan Maturing June 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 0 | $ 0 | $ 33,693 | ||||||
Repayment of term loan | $ 61,000 |
Long-Term Debt - MARAD Debt (De
Long-Term Debt - MARAD Debt (Details) - MARAD Debt Maturing February 2027 | 9 Months Ended |
Sep. 30, 2019 | |
Debt Instrument [Line Items] | |
Guarantor obligations (as a percent) | 50.00% |
Frequency of periodic payment | semi-annual |
Maturity date | February 2027 |
Interest rate (as a percent) | 4.93% |
Long-Term Debt - Nordea Credit
Long-Term Debt - Nordea Credit Agreement (Details) - Nordea Q5000 Loan Maturing April 2020 - USD ($) $ in Millions | 1 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | |||
Borrowing capacity | $ 250 | ||
Funded amount | $ 250 | ||
Maturity date | Apr. 30, 2020 | ||
Frequency of periodic payment | quarterly | ||
Scheduled principal installments | $ 8.9 | ||
Balloon payment | $ 80.4 | ||
Interest Rate Swaps | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 187.5 | ||
Fixed LIBOR rate on interest rate swaps (as a percent) | 1.50% | ||
LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.50% |
Long-Term Debt - Convertible _3
Long-Term Debt - Convertible Senior Notes Due 2032 (Details) - USD ($) $ in Thousands | Mar. 20, 2018 | Mar. 31, 2012 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 04, 2018 |
Debt Instrument [Line Items] | |||||||
Principal amount | $ 445,949 | $ 445,949 | |||||
Repurchase of convertible debt | 0 | $ 60,365 | |||||
Loss on extinguishment of long-term debt | $ 0 | $ (2) | $ (18) | $ (1,183) | |||
Convertible Senior Notes Maturing March 2032 (Redeemed May 2018) | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 200,000 | ||||||
Interest rate (as a percent) | 3.25% | ||||||
Maturity date | Mar. 15, 2032 | ||||||
Repurchased principal amount | $ 59,300 | $ 800 | |||||
Repurchase of convertible debt | 59,500 | ||||||
Payments for fees | 200 | ||||||
Loss on extinguishment of long-term debt | $ (200) |
Long-Term Debt - Components Of
Long-Term Debt - Components Of Net Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 7,694 | $ 8,171 | $ 23,635 | $ 24,511 |
Interest income | (652) | (994) | (2,085) | (2,263) |
Capitalized interest | (5,141) | (3,928) | (15,346) | (11,504) |
Net interest expense | $ 1,901 | $ 3,249 | $ 6,204 | $ 10,744 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 10.10% | 3.00% | 11.90% | 2.80% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
Foreign provision | (10.10%) | (18.50%) | (9.70%) | (19.10%) |
Other | (0.80%) | 0.50% | 0.60% | 0.90% |
Effective rate | 10.10% | 3.00% | 11.90% | 2.80% |
Shareholders' Equity - Componen
Shareholders' Equity - Components Of Accumulated OCI (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative foreign currency translation adjustment | $ (74,419) | $ (69,855) |
Net unrealized loss on hedges, net of tax | (781) | (4,109) |
Accumulated OCI | (75,200) | (73,964) |
Deferred tax assets | $ 200 | $ 1,000 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 212,609 | $ 212,575 | $ 581,160 | $ 581,462 |
Intercompany Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | (23,283) | (12,083) | (51,398) | (33,417) |
Well Intervention | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 170,206 | 154,441 | 451,511 | 445,769 |
Well Intervention | Intercompany Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | (15,318) | (4,379) | (28,355) | (10,546) |
Robotics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 51,909 | 54,340 | 136,396 | 120,569 |
Robotics | Intercompany Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | (7,965) | (7,704) | (23,043) | (22,871) |
Production Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 13,777 | 15,877 | 44,651 | 48,541 |
Short-term | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 79,827 | 69,425 | 226,051 | 217,560 |
Short-term | Intercompany Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Short-term | Well Intervention | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 53,018 | 39,548 | 145,611 | 143,510 |
Short-term | Robotics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 26,809 | 29,877 | 80,440 | 74,050 |
Short-term | Production Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Long-term | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 132,782 | 143,150 | 355,109 | 363,902 |
Long-term | Intercompany Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | (23,283) | (12,083) | (51,398) | (33,417) |
Long-term | Well Intervention | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 117,188 | 114,893 | 305,900 | 302,259 |
Long-term | Robotics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 25,100 | 24,463 | 55,956 | 46,519 |
Long-term | Production Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 13,777 | $ 15,877 | $ 44,651 | $ 48,541 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract assets | $ 0.6 | $ 0.6 | $ 5.8 | ||
Contract liabilities | 20 | 20 | 25.9 | ||
Revenue recognized | 4 | $ 7.4 | 7.4 | $ 10.8 | |
Deferred contract costs | 47.1 | 47.1 | $ 65.9 | ||
Amortization of deferred contract costs | 7.7 | $ 8.5 | 23.6 | $ 25.6 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unsatisfied performance obligations | 114.5 | 114.5 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unsatisfied performance obligations | 443.2 | 443.2 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unsatisfied performance obligations | 276.1 | 276.1 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Unsatisfied performance obligations | $ 833.8 | $ 833.8 |
Earnings Per Share - Computatio
Earnings Per Share - Computations Of Basic And Diluted EPS (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic: | ||||
Net income attributable to common shareholders | $ 31,695 | $ 27,121 | $ 49,867 | $ 42,345 |
Less: Undistributed earnings allocated to participating securities | (261) | (260) | (435) | (407) |
Accretion of redeemable noncontrolling interests | (25) | 0 | (43) | 0 |
Net income available to common shareholders, basic | $ 31,409 | $ 26,861 | $ 49,389 | $ 41,938 |
Weighted average number of shares outstanding, basic (in shares) | 147,575 | 146,700 | 147,506 | 146,679 |
Effect of dilutive securities: | ||||
Net income available to common shareholders, basic | $ 31,409 | $ 26,861 | $ 49,389 | $ 41,938 |
Share-based awards other than participating securities | $ 0 | $ 0 | $ 0 | $ 0 |
Share-based awards other than participating securities (in shares) | 779 | 264 | 580 | 82 |
Undistributed earnings reallocated to participating securities | $ 1 | $ 0 | $ 2 | $ 0 |
Net income available to common shareholders, diluted | $ 31,410 | $ 26,861 | $ 49,391 | $ 41,938 |
Weighted average number of shares outstanding, diluted (in shares) | 148,354 | 146,964 | 148,086 | 146,761 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Shares Excluded From Diluted EPS Calculation (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Convertible Senior Notes Maturing May 2022 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 8,997 | 8,997 | 8,997 | 8,997 |
Convertible Senior Notes Maturing September 2023 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 13,202 | 13,202 | 13,202 | 9,381 |
Convertible Senior Notes Maturing March 2032 (Redeemed May 2018) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 0 | 0 | 701 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | May 15, 2019shares | Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of active incentive plans | 1 | |||||
2005 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized for issuance (in shares) | shares | 7,000,000 | |||||
Shares available for issuance (in shares) | shares | 8,500,000 | 8,500,000 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ | $ 1.2 | $ 1.5 | $ 4.9 | $ 4.5 | ||
Performance Share Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ | 1.2 | 6.3 | $ 3.9 | 11.5 | ||
Share-based award liability | $ | $ 11.1 | |||||
Vesting period | 3 years | |||||
Fixed Value Cash Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Long-term incentive cash awards granted | $ | 4.6 | $ 4.6 | $ 5.2 | |||
Vesting period | 3 years | |||||
Compensation expense | $ | $ 0.8 | $ 0.5 | $ 2.4 | $ 1.3 | ||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized for issuance (in shares) | shares | 1,500,000 | |||||
Shares available for issuance (in shares) | shares | 2,000,000 | 2,000,000 | ||||
Purchase limit per employee (in shares) | shares | 260 |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-Based Awards Granted (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Performance Share Units | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Vesting Period | 3 years |
Maximum | Performance Share Units | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Vesting Percentage | 200.00% |
Minimum | Performance Share Units | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Vesting Percentage | 0.00% |
January 2, 2019 - 33% Per Year over Three Years | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 2, 2019 |
Shares/ Units | shares | 688,540 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 5.41 |
Vesting Percentage | 33.00% |
Vesting Period | 3 years |
January 2, 2019 - 100% on January 2, 2022 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 2, 2019 |
Shares/ Units | shares | 688,540 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 7.60 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 2, 2022 |
January 2, 2019 - 100% on January 1, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 2, 2019 |
Shares/ Units | shares | 11,841 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 5.41 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 1, 2021 |
April 1, 2019 - 100% on January 1, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Apr. 1, 2019 |
Shares/ Units | shares | 7,625 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 7.91 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 1, 2021 |
July 1, 2019 - 100% on January 1, 2021 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jul. 1, 2019 |
Shares/ Units | shares | 8,727 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 8.63 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 1, 2021 |
August 1, 2019 - 100% on August 1, 2020 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Aug. 1, 2019 |
Shares/ Units | shares | 7,151 |
Grant Date Fair Value Per Share/Unit | $ / shares | $ 8.76 |
Vesting Percentage | 100.00% |
Vesting Date | Aug. 1, 2020 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segmentvessel | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Robotics | |
Segment Reporting Information [Line Items] | |
Number of long-term chartered vessels | vessel | 3 |
Business Segment Information _2
Business Segment Information - Financial Data By Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 212,609 | $ 212,575 | $ 581,160 | $ 581,462 |
Income (loss) from operations | 38,998 | 31,377 | 62,339 | 55,033 |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 49,615 | 46,722 | 93,830 | 90,875 |
Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (23,283) | (12,083) | (51,398) | (33,417) |
Corporate, Eliminations and Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (10,617) | (15,345) | (31,491) | (35,842) |
Well Intervention | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 170,206 | 154,441 | 451,511 | 445,769 |
Well Intervention | Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 170,206 | 154,441 | 451,511 | 445,769 |
Income (loss) from operations | 37,689 | 34,427 | 74,002 | 82,774 |
Well Intervention | Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (15,318) | (4,379) | (28,355) | (10,546) |
Robotics | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 51,909 | 54,340 | 136,396 | 120,569 |
Robotics | Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 51,909 | 54,340 | 136,396 | 120,569 |
Income (loss) from operations | 8,876 | 5,601 | 7,921 | (12,818) |
Robotics | Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (7,965) | (7,704) | (23,043) | (22,871) |
Production Facilities | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 13,777 | 15,877 | 44,651 | 48,541 |
Production Facilities | Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 13,777 | 15,877 | 44,651 | 48,541 |
Income (loss) from operations | $ 3,050 | $ 6,694 | $ 11,907 | $ 20,919 |
Business Segment Information _3
Business Segment Information - Intercompany Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ (212,609) | $ (212,575) | $ (581,160) | $ (581,462) |
Well Intervention | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (170,206) | (154,441) | (451,511) | (445,769) |
Robotics | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (51,909) | (54,340) | (136,396) | (120,569) |
Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 23,283 | 12,083 | 51,398 | 33,417 |
Intercompany Eliminations | Well Intervention | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 15,318 | 4,379 | 28,355 | 10,546 |
Intercompany Eliminations | Well Intervention | Droshky Prospect | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 10,600 | 15,900 | ||
Intercompany Eliminations | Robotics | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 7,965 | $ 7,704 | $ 23,043 | $ 22,871 |
Business Segment Information _4
Business Segment Information - Total Assets By Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,613,511 | $ 2,347,730 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 137,956 | 162,645 |
Well Intervention | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,133,205 | 1,916,638 |
Robotics | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 183,125 | 147,602 |
Production Facilities | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 159,225 | $ 120,845 |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 18, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 0 | |
Liability incurred during the period | 53,294 | |
Liability settled during the period | (15,944) | |
Accretion expense | 1,770 | |
Balance at end of period | 39,120 | |
Business Acquisition [Line Items] | ||
ARO liability | $ 0 | |
Droshky Prospect | ||
Business Acquisition [Line Items] | ||
ARO liability | $ 53,300 | |
Other receivables | 50,800 | |
Acquired property | $ 2,500 |
Commitments And Contingencies_2
Commitments And Contingencies And Other Matters - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Total investment | $ 2,819,932 | $ 2,785,778 |
Siem Helix 1 and Siem Helix 2 | ||
Commitments And Contingencies [Line Items] | ||
Term of charter agreement | 7 years | |
Q7000 | ||
Commitments And Contingencies [Line Items] | ||
Total investment | $ 446,400 | |
Q7000 | Contract Signing | ||
Commitments And Contingencies [Line Items] | ||
Percentage of contract price | 20.00% | |
Q7000 | Due 2016 | ||
Commitments And Contingencies [Line Items] | ||
Percentage of contract price | 20.00% | |
Q7000 | Due 2017 | ||
Commitments And Contingencies [Line Items] | ||
Percentage of contract price | 20.00% | |
Q7000 | Due 2018 | ||
Commitments And Contingencies [Line Items] | ||
Percentage of contract price | 20.00% | |
Q7000 | Vessel Delivery | ||
Commitments And Contingencies [Line Items] | ||
Percentage of contract price | 20.00% | |
Q7000 | Shipyard | ||
Commitments And Contingencies [Line Items] | ||
Total investment | $ 276,800 |
Statement Of Cash Flow Inform_3
Statement Of Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of interest capitalized | $ 2,404 | $ 6,620 |
Income taxes paid | $ 7,535 | $ 4,699 |
Statement Of Cash Flow Inform_4
Statement Of Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Non-cash capital additions | $ 14 | $ 9.9 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | $ 2,615 | $ 9,131 |
Foreign Exchange Contracts | Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 1,089 | 6,211 |
Foreign Exchange Contracts | Non-Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 1,634 | 3,984 |
Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 108 | 1,064 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 0 | 0 |
Level 1 | Foreign Exchange Contracts | Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 1 | Foreign Exchange Contracts | Non-Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 1 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 2,615 | 9,131 |
Level 2 | Foreign Exchange Contracts | Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 1,089 | 6,211 |
Level 2 | Foreign Exchange Contracts | Non-Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 1,634 | 3,984 |
Level 2 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 108 | 1,064 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 0 | 0 |
Level 3 | Foreign Exchange Contracts | Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Foreign Exchange Contracts | Non-Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Fair Value Measurements - Princ
Fair Value Measurements - Principal Amount And Estimated Fair Value Of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 28, 2019 | Dec. 31, 2018 | Mar. 20, 2018 | Nov. 01, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | $ 445,949 | ||||
Term Loan Maturing June 2020 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 0 | $ 33,693 | |||
Fair value | 0 | 33,314 | |||
Term Loan Maturing December 2021 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 34,125 | $ 35,000 | 0 | ||
Fair value | 33,698 | 0 | |||
Nordea Q5000 Loan Maturing April 2020 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 98,214 | 125,000 | |||
Fair value | 98,214 | 122,500 | |||
MARAD Debt Maturing February 2027 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 63,610 | 70,468 | |||
Fair value | 68,972 | 74,406 | |||
Convertible Senior Notes Maturing May 2022 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 125,000 | 125,000 | $ 125,000 | ||
Fair value | 126,094 | 114,298 | |||
Convertible Senior Notes Maturing September 2023 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 125,000 | 125,000 | $ 125,000 | ||
Fair value | 146,719 | 114,688 | |||
Total Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Principal amount | 445,949 | 479,161 | |||
Fair value | $ 473,697 | $ 459,206 |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2015 | |
Derivative [Line Items] | ||
Loss in Accumulated OCI to be re-classified within twelve months | $ 0.8 | |
Interest Rate Swaps | Nordea Q5000 Loan Maturing April 2020 | ||
Derivative [Line Items] | ||
Notional amount | $ 187.5 |
Derivative Instruments And He_4
Derivative Instruments And Hedging Activities - Derivative Instruments Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset derivative instruments designated as hedging instruments | $ 108 | $ 1,064 |
Liability derivative instruments designated as hedging instruments | 1,089 | 6,211 |
Other Current Assets | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivative instruments designated as hedging instruments | 108 | 863 |
Other Assets, Net | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivative instruments designated as hedging instruments | 0 | 201 |
Accrued Liabilities | Foreign Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivative instruments designated as hedging instruments | 1,089 | 5,857 |
Other Non-Current Liabilities | Foreign Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivative instruments designated as hedging instruments | $ 0 | $ 354 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities - Derivative Instruments Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Liability derivative instruments not designated as hedging instruments | $ 1,634 | $ 3,984 |
Accrued Liabilities | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Liability derivative instruments not designated as hedging instruments | 1,634 | 3,454 |
Other Non-Current Liabilities | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Liability derivative instruments not designated as hedging instruments | $ 0 | $ 530 |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities - Unrealized Gain (Loss) Recognized In OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in OCI | $ (274) | $ (88) | $ (701) | $ 839 |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in OCI | (280) | (164) | (338) | (35) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) Recognized in OCI | $ 6 | $ 76 | $ (363) | $ 874 |
Derivative Instruments And He_7
Derivative Instruments And Hedging Activities - Gain (Loss) Reclassified From Accumulated OCI Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | $ (1,046) | $ (1,799) | $ (4,867) | $ (5,233) |
Foreign Exchange Contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | (1,197) | (1,957) | (5,460) | (5,538) |
Interest Rate Swaps | Net Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | $ 151 | $ 158 | $ 593 | $ 305 |
Derivative Instruments And He_8
Derivative Instruments And Hedging Activities - Impact Of Derivative Instruments Not Designated As Hedging Instruments On Condensed Consolidated Statements Of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Recognized in Earnings | $ (371) | $ (83) | $ (413) | $ (26) |
Foreign Exchange Contracts | Other Expense, Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Recognized in Earnings | $ (371) | $ (83) | $ (413) | $ (26) |