| 1000 - CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 12 Months Ended
Dec. 31, 2008 |
| Current Assets: | ||
| Cash and cash equivalents | $671,299 | $586,649 |
| Restricted cash and cash equivalents (Note 1) | 81,229 | 50,536 |
| Investments | 20,187 | 131,515 |
| Accounts receivable - trade, net | 731,419 | 712,055 |
| Accounts and notes receivable - unconsolidated affiliates | 1,268 | 1,504 |
| Accounts receivable - other | 87,929 | 139,062 |
| Contracts in progress | 381,196 | 311,713 |
| Inventories (Note 1) | 120,130 | 128,383 |
| Deferred income taxes | 103,568 | 97,069 |
| Other current assets | 67,228 | 58,499 |
| Total Current Assets | 2,265,453 | 2,216,985 |
| Property, Plant and Equipment | 2,362,922 | 2,234,050 |
| Less accumulated depreciation | 1,210,203 | 1,155,191 |
| Net Property, Plant and Equipment | 1,152,719 | 1,078,859 |
| Investments | 279,948 | 319,170 |
| [Goodwill] | 299,168 | 298,265 |
| Deferred Income Taxes | 264,018 | 335,877 |
| Investments in Unconsolidated Affiliates | 78,082 | 70,304 |
| Other Assets | 270,806 | 282,233 |
| TOTAL | 4,610,194 | 4,601,693 |
| Current Liabilities: | ||
| Notes payable and current maturities of long-term debt | 3,780 | 9,021 |
| Accounts payable | 487,396 | 551,435 |
| Accrued employee benefits | 236,075 | 205,521 |
| Accrued liabilities - other | 207,630 | 217,486 |
| Accrued contract cost | 128,807 | 97,041 |
| Advance billings on contracts | 816,948 | 951,895 |
| Accrued warranty expense | 128,195 | 120,237 |
| Income taxes payable | 50,608 | 55,709 |
| Total Current Liabilities | 2,059,439 | 2,208,345 |
| Long-Term Debt | 5,896 | 6,109 |
| Accumulated Postretirement Benefit Obligation | 105,464 | 107,567 |
| Self-Insurance | 93,988 | 88,312 |
| Pension Liability | 644,746 | 682,624 |
| Other Liabilities | 141,540 | 192,223 |
| Commitments and Contingencies (Note 3) | - | - |
| Stockholders' Equity: | ||
| Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 236,239,688 and 234,174,088 shares at June 30, 2009 and December 31, 2008, respectively | 236,240 | 234,174 |
| Capital in excess of par value | 1,274,112 | 1,252,848 |
| Retained earnings | 734,838 | 564,591 |
| Treasury stock at cost, 5,746,871 and 5,840,314 shares at June 30, 2009 and December 31, 2008, respectively | (67,779) | (63,026) |
| Accumulated other comprehensive loss | (624,660) | (672,415) |
| Stockholders' Equity - McDermott International, Inc. | 1,552,751 | 1,316,172 |
| Noncontrolling interest | 6,370 | 341 |
| Total Stockholders' Equity | 1,559,121 | 1,316,513 |
| TOTAL | $4,610,194 | $4,601,693 |
| 1100 - PARANTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
| Jun. 30, 2009
| Dec. 31, 2008
| |
| Stockholders' Equity: | ||
| Common Stock, par value | 1 | 1 |
| Common Stock,authorized shares | 400,000,000 | 400,000,000 |
| Common Stock, issued | 236,239,688 | 234,174,088 |
| Treasury Stock, shares | 5,746,871 | 5,840,314 |
| 2000 - CONSOLIDATED STATEMENTS OF INCOME (USD $) | ||||
| In Thousands, except Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| [Revenues] | $1,564,999 | $1,792,646 | $3,058,262 | $3,243,072 |
| Costs and Expenses: | ||||
| Cost of operations | 1,275,058 | 1,432,736 | 2,503,680 | 2,621,432 |
| Gains on asset disposals - net | (1,897) | (17) | (656) | (11,460) |
| Selling, general and administrative expenses | 153,195 | 138,055 | 294,589 | 264,786 |
| Total Costs and Expenses | 1,426,356 | 1,570,774 | 2,797,613 | 2,874,758 |
| Equity in Income of Investees | 9,097 | 9,252 | 18,297 | 19,922 |
| Operating Income | 147,740 | 231,124 | 278,946 | 388,236 |
| Other Income (Expense): | ||||
| Interest income (expense) - net | 4,987 | 8,186 | 6,844 | 18,641 |
| Other income (expense) - net | (10,201) | (1,843) | (20,971) | (2,097) |
| Total Other Income | (5,214) | 10,029 | (14,127) | 16,544 |
| Income before Provision for Income Taxes | 142,526 | 241,153 | 264,819 | 404,780 |
| Provision for Income Taxes | 44,645 | 63,602 | 88,523 | 103,982 |
| Net Income | 97,881 | 177,551 | 176,296 | 300,798 |
| Less: Net Income Attributable to Noncontrolling Interest | (5,326) | (12) | (6,049) | (69) |
| Net Income Attributable to McDermott International, Inc. | $92,555 | $177,539 | $170,247 | $300,729 |
| Earnings per Common Share: | ||||
| Basic | 0.4 | 0.78 | 0.74 | 1.33 |
| Diluted | 0.4 | 0.77 | 0.73 | 1.31 |
| Shares used in the computation of earnings per share | ||||
| Basic | 229,273,441 | 226,862,500 | 228,794,113 | 226,247,335 |
| Diluted | 233,105,949 | 230,408,760 | 232,846,098 | 230,260,810 |
| 3000 - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | ||||
| In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Net Income | $97,881 | $177,551 | $176,296 | $300,798 |
| Currency translation adjustments: | ||||
| Foreign currency translation adjustments | 21,323 | 2,843 | 15,951 | 6,204 |
| Unrealized gains (losses) on derivative financial instruments: | ||||
| Unrealized gains (losses) on derivative financial instruments | 6,619 | (1,334) | 4,765 | 3,214 |
| Reclassification adjustment for gains included in net income | (2,546) | (3,822) | (624) | (3,750) |
| Amortization of benefit plan costs | 14,267 | 6,490 | 28,422 | 13,029 |
| Unrealized gains (losses) on investments: | ||||
| Unrealized gains (losses) arising during the period | 1,234 | (2,712) | (638) | (5,622) |
| Reclassification adjustment for net gains included in net income | (36) | (228) | (86) | (1,102) |
| Other Comprehensive Income | 40,861 | 1,693 | 47,790 | 11,973 |
| Total Comprehensive Income | 138,742 | 179,244 | 224,086 | 312,771 |
| Comprehensive Income Attributable to Noncontrolling Interest | (5,370) | (68) | (6,084) | (106) |
| McDermott International, Inc. | $133,372 | $179,176 | $218,002 | $312,665 |
| 5000 - CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net Income | $176,296 | $300,798 |
| Non-cash items included in net income: | ||
| Depreciation and amortization | 71,913 | 63,717 |
| Income of investees, less dividends | (4,012) | (8,528) |
| Gains on asset disposals - net | (656) | (11,460) |
| Provision for deferred taxes | 55,221 | 63,547 |
| Amortization of pension and postretirement costs | 44,094 | 20,266 |
| Excess tax benefits from FAS 123(R) stock-based compensation | (235) | (3,388) |
| Other, net | 26,725 | 21,193 |
| Changes in assets and liabilities, net of effects from acquisition and divestitures: | ||
| Accounts receivable | (19,918) | (35,782) |
| Income tax receivable | 56,177 | (2,661) |
| Net contracts in progress and advance billings on contracts | (205,376) | (360,000) |
| Accounts payable | (69,860) | 26,321 |
| Income taxes | (10,093) | 3,002 |
| Accrued and other current liabilities | 24,466 | 22,743 |
| Pension liability, accumulated postretirement benefit obligation and accrued employee benefits | (12,567) | (129,834) |
| Other, net | (29,155) | (56,374) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 103,020 | (86,440) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Increase in restricted cash and cash equivalents | (30,693) | (5,239) |
| Purchases of property, plant and equipment | (129,386) | (120,393) |
| Net (increase) decrease in available-for-sale securities | 148,725 | (124,729) |
| Proceeds from asset disposals | 2,311 | 12,013 |
| Other, net | (2,117) | (2,048) |
| NET CASH USED IN INVESTING ACTIVITIES | (11,160) | (240,396) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Payment of long-term debt | (5,419) | (4,525) |
| Issuance of common stock | 342 | 7,467 |
| Payment of debt issuance costs | (45) | (1,564) |
| Excess tax benefits from FAS 123(R) stock-based compensation | 235 | 3,388 |
| Other, net | (64) | 0 |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (4,951) | 4,766 |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (2,259) | (683) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 84,650 | (322,753) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 586,649 | 1,001,394 |
| CASH AND CASH EQUIVLENTS AT END OF PERIOD | 671,299 | 678,641 |
| Cash paid during the period for | ||
| Interest (net of amount capitalized) | 2,548 | 4,006 |
| Income taxes (net of refunds) | ($16,903) | $43,981 |
| 6000 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
| BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES We have presented our condensed consolidated financial statements in U.S.Dollars in accordance with the interim reporting requirements of Form 10-Q andRule 10-01 of Regulation S-X. Financial information and disclosures normallyincluded in our financial statements prepared annually in accordance withaccounting principles generally accepted in the United States ("GAAP") have beencondensed or omitted. Readers of these financial statements should, therefore,refer to the consolidated financial statements and the notes in our annualreport on Form 10-K for the year ended December 31, 2008. We have included all adjustments, consisting only of normal recurringadjustments, necessary for a fair presentation. These condensed consolidatedfinancial statements include the accounts of McDermott International, Inc. andits subsidiaries and controlled entities consistent with Financial AccountingStandards Board ("FASB") Interpretation No. 46(R), Consolidation of VariableInterest Entities (revised December 2003). We use the equity method to accountfor investments in entities that we do not control, but over which we havesignificant influence. We generally refer to these entities as "joint ventures."We have eliminated all significant intercompany transactions and accounts. Wehave reclassified certain amounts previously reported to conform to thepresentation at June 30, 2009 and for the three and six months ended June 30,2009. We have evaluated subsequent events through August 10, 2009, the date ofissuance of this report. We present the notes to our condensed consolidatedfinancial statements on the basis of continuing operations, unless otherwisestated. McDermott International, Inc. ("MII"), incorporated under the laws of theRepublic of Panama in 1959, is an engineering and construction company withspecialty manufacturing and service capabilities and is the parent company ofthe McDermott group of companies, including J. Ray McDermott, S.A. ("JRMSA") andThe Babcock & Wilcox Company ("B&W"). In this quarterly report on Form 10-Q,unless the context otherwise indicates, "we," "us" and "our" mean MII and itsconsolidated subsidiaries. We operate in three business segments: Offshore Oil and Gas Construction,Government Operations and Power Generation Systems, further described asfollows: - Our Offshore Oil and Gas Construction segment includes the business andoperations of JRMSA, J. Ray McDermott Holdings, LLC and their respectivesubsidiaries. This segment supplies services primarily to offshore oil and gasfield developments worldwide, including the front-end design and detailedengineering, fabrication and installation of offshore drilling and productionfacilities and installation of marine pipelines and subsea production systems.It also provides comprehensive project management and procurement services.This segment operates in most major offshore oil and gas producing regions,including the United States, Mexico, Canada, the Middle East, India, the CaspianSea and Asia Pacific. - Our Government Operations segment includes the business and operations ofBWX Technologies, Inc., Babcock & Wilcox Nuclear Operati |
| 6010 - PENSION PLANS AND POSTRETIREMENT BENEFITS | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| PENSION PLANS AND POSTRETIREMENT BENEFITS | |
| PENSION PLANS AND POSTRETIREMENT BENEFITS | NOTE 2 - PENSION PLANS AND POSTRETIREMENT BENEFITS Components of net periodic benefit cost included in net income are as follows: Pension Benefits Other Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2009 2008 2009 2008 2009 2008 2009 2008 (Unaudited) (In thousands)Service cost $ 9,611 $ 9,757 $ 19,176 $ 19,540 $ 231 $ 82$ 462 $ 165Interest cost 40,086 38,795 80,187 77,650 2,1531,430 4,323 2,843Expected return on plan assets (37,016 ) (45,787 ) (73,925 )(91,620 ) (376 ) - (753 ) -Amortization of prior service cost 697 768 1,387 1,53717 19 32 38Amortization of transition obligation - - - - 6373 122 147Recognized net actuarial loss 20,948 8,904 41,749 17,815404 364 809 728Net periodic benefit cost $ 34,326 $ 12,437 $ 68,574 $ 24,922$ 2,492 $ 1,968 $ 4,995 $ 3,921 |
| 6020 - CONTINGENCIES AND COMMITMENTS | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| CONTINGENCIES AND COMMITMENTS | |
| CONTINGENCIES AND COMMITMENTS | NOTE 3 - COMMITMENTS AND CONTINGENCIES Other than as noted below, there have been no material changes during the periodcovered by this Form 10-Q in the status of the legal proceedings disclosed inNote 11 to the consolidated financial statements in Part II of our annual reporton Form 10-K for the year ended December 31, 2008. Investigations and Litigation With regard to the matter of Donald F. Hall and Mary Ann Hall, et al., v.Babcock & Wilcox Company, et al. (the "Hall Litigation"), the parties enteredinto the final settlement agreement described in our annual report on Form 10-Kfor the year ended December 31, 2008 (our "2008 10-K"), and that settlement wasapproved by the United States District Court for the Western District ofPennsylvania (the "District Court") in April 2009. In May 2009, B&W PGG paidapproximately $52.5 million pursuant to the terms of the final settlementagreement, which is within the amount we have accrued for these claims.Additionally, B&W PGG and Atlantic Richfield Company ("ARCO"), a formerdefendant in the Hall Litigation, entered into the final settlement agreementdescribed in our 2008 10-K, relating to B&W PGG's indemnity action against ARCOfor any liability as a result of the Hall Litigation. The indemnity settlementwas also approved by the District Court in April 2009. B&W PGG and Babcock &Wilcox Technical Services Group, Inc., formerly known as B&W NuclearEnvironmental Services, Inc., have retained all insurance rights and intend tocontinue to pursue recovery from American Nuclear Insurers and mutual AtomicEnergy Liability Underwriters ("ANI") to recover the amounts paid in settlementof the Hall Litigation in the matter of The Babcock & Wilcox Company et al. v.American Nuclear Insurers et al. (the "ANI Litigation"), which is pending before the Court of Common Pleas of AlleghenyCounty, Pennsylvania. A hearing in the ANI Litigation is set for September 14,2009 to determine the legal standard to be applied in determining ANI'sinsurance coverage obligations with respect to the settlement of the HallLitigation. The three separate purported class action complaints against MII, Bruce W.Wilkinson (MII's former Chief Executive Officer and Chairman of the Board), andMichael S. Taff (the Chief Financial Officer of MII) described in our 2008 10-Khave been consolidated. In April 2009, our motion to transfer the consolidatedcases to the Southern District of Texas was granted. On May 22, 2009, theplaintiffs filed an amended consolidated complaint, which, among other things,added Robert A. Deason (JRMSA's President and Chief Executive Officer) as adefendant in the proceedings. On July 1, 2009, MII and the other defendantsfiled a motion to dismiss the complaint. The plaintiffs filed two responses tothe motion to dismiss: (1) a motion to convert the motion to dismiss to a motionfor summary judgment and granting the plaintiffs leave to conduct discovery,which was filed on July 10, 2009; and (2) an opposition to the motion todismiss, which was filed on August 3, 2009. MII and the other defendants fileda response to the plaintiffs' motion to convert on July 30, 2009 and intend tofile a reply to the plaintiffs' opposition to the motion |
| 6030 - DERIVATIVE FINANCIAL INSTRUMENTS | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| DERIVATIVE FINANCIAL INSTRUMENTS | |
| DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 4 - DERIVATIVE FINANCIAL INSTRUMENTS Our worldwide operations give rise to exposure to market risks from changes inforeign exchange rates. We use derivative financial instruments (primarilyforeign currency forward-exchange contracts) to reduce the impact of changes inforeign exchange rates on our operating results. We use these instrumentsprimarily to hedge our exposure associated with revenues or costs on ourlong-term contracts and other cash flow exposures that are denominated incurrencies other than our operating entities' functional currencies. We do nothold or issue financial instruments for trading or other speculative purposes. We enter into derivative financial instruments primarily as hedges of certainfirm purchase and sale commitments denominated in foreign currencies. We recordthese contracts at fair value on our consolidated balance sheets. Depending onthe hedge designation at the inception of the contract, the related gains andlosses on these contracts are either deferred in stockholders' equity (deficit)as a component of accumulated other comprehensive loss, until the hedged item is recognized in earnings, or offset against the change in fairvalue of the hedged firm commitment through earnings. The ineffective portionof a derivative's change in fair value and any portion excluded from theassessment of effectiveness are immediately recognized in earnings. The gain orloss on a derivative instrument not designated as a hedging instrument is alsoimmediately recognized in earnings. Gains and losses on derivative financialinstruments that require immediate recognition are included as a component ofother income (expense) - net in our consolidated statements of income. We have designated all of our forward contracts as either cash flow or fairvalue hedging instruments. The hedged risk is the risk of changes infunctional-currency-equivalent cash flows attributable to changes in spotexchange rates of forecasted transactions related to long-term contracts andcertain capital expenditures. We exclude from our assessment of effectivenessthe portion of the fair value of the forward contracts attributable to thedifference between spot exchange rates and forward exchange rates. At June 30,2009, we had deferred approximately $9.1 million of net losses on thesederivative financial instruments in accumulated other comprehensive loss. Ofthis amount, we expect to recognize approximately $1.0 million of income in thenext 12 months. At June 30, 2009, all of our derivative financial instruments consisted offoreign currency forward-exchange contracts. The notional value of our forwardcontracts totaled $348.5 million at June 30, 2009, with maturities extending toDecember 2011. These instruments consist primarily of contracts to purchase orsell Euros or Canadian Dollars. The fair value of these contracts totaled($10.4) million. We are exposed to credit-related losses in the event ofnonperformance by counterparties to derivative financial instruments. However,when possible, we enter into International Swaps and Derivative Association,Inc. agreements with our hedge counterparties to mitigate this risk. We alsoattempt to mitigate this risk by using major |
| 6040 - FAIR VALUE MEASUREMENTS | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| FAIR VALUE MEASUREMENTS | |
| FAIR VALUE MEASUREMENTS | NOTE 5 - FAIR VALUE MEASUREMENTS The following is a summary of our available-for-sale securities measured at fairvalue at June 30, 2009 (in thousands) (unaudited): 6/30/09 Level 1 Level 2 Level 3Mutual funds $ 4,379 $ - $ 4,379 $ -Certificates of deposit 2,661 - 2,661 -U.S. Government and agency securities 215,589 175,182 40,407-Asset-backed securities and collateralized mortgage obligations 9,498- 3,053 6,445Corporate notes and bonds 68,008 - 68,008 -Total $ 300,135 $ 175,182 $ 118,508 $ 6,445 Changes in Level 3 Instrument The following is a summary of the changes in our Level 3 instrument measured on a recurring basis for the period ended June 30, 2009 (in thousands): Balance, beginning of the year $ 7,456 Total realized and unrealized gains (losses):Included in other income (expense) (7)Included in other comprehensive income 86Purchases, issuances and settlements -Principal repayments (1,090)Balance, end of period $ 6,445 Other Financial Instruments We used the following methods and assumptions in estimating our fair valuedisclosures for our other financial instruments, as follows: Cash and cash equivalents and restricted cash and cash equivalents. Thecarrying amounts that we have reported in the accompanying consolidated balancesheets for cash and cash equivalents and restricted cash and cash equivalentsapproximate their fair values. Long-term and short-term debt. We base the fair values of debt instruments onquoted market prices. Where quoted prices are not available, we base the fairvalues on the present value of future cash flows discounted at estimatedborrowing rates for similar debt instruments or on estimated prices based oncurrent yields for debt issues of similar quality and terms. The estimated fair values of our financial instruments are as follows: June 30, 2009 December 31, 2008 Carrying Amount Fair Value Carrying Amount Fair Value (Unaudited) (In thousands) Balance Sheet Instruments Cash and cash equivalents $ 671,299 $ 671,299 $ 586,649 $ 586,649Restricted cash and cash equivalents $ 81,229 $ 81,229 $ 50,536 $50,536Investments $ 300,135 $ 300,135 $ 450,685 $ 450,685Debt $ 9,676 $ 9,757 $ 15,130 $ 15,221 |
| BASED COMPENSATION | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| STOCK-BASED COMPENSATION | |
| STOCK-BASED COMPENSATION | NOTE 6 - STOCK-BASED COMPENSATION Total stock-based compensation expense recognized for the three and six monthsended June 30, 2009 and 2008 was as follows: Compensation Tax Net Expense Benefit Impact (Unaudited) (In thousands) Three Months Ended June 30, 2009 Stock Options $ 831 $ (279 ) $ 552Restricted Stock 2,216 (366 ) 1,850Performance Shares 4,871 (1,712 ) 3,159Performance and Deferred Stock Units 2,768 (923 ) 1,845Total $ 10,686 $ (3,280 ) $ 7,406 Three Months Ended June 30, 2008 Stock Options $ 245 $ (74 ) $ 171Restricted Stock 1,876 (293 ) 1,583Performance Shares 8,590 (2,767 ) 5,823Performance and Deferred Stock Units 1,748 (576 ) 1,172Total $ 12,459 $ (3,710 ) $ 8,749 Six Months Ended June 30, 2009 Stock Options $ 1,059 $ (355 ) $ 704Restricted Stock 3,378 (728 ) 2,650Performance Shares 11,396 (3,894 ) 7,502Performance and Deferred Stock Units 3,878 (1,289 ) 2,589Total $ 19,711 $ (6,266 ) $ 13,445 Six Months Ended June 30, 2008 Stock Options $ 766 $ (234 ) $ 532Restricted Stock 2,216 (386 ) 1,830Performance Shares 18,345 (5,910 ) 12,435Performance and Deferred Stock Units 3,097 (1,020 ) 2,077Total $ 24,424 $ (7,550 ) $ 16,874 |
| 6060 - SEGMENT REPORTING | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| SEGMENT REPORTING | |
| SEGMENT REPORTING | NOTE 7 - SEGMENT REPORTING An analysis of our operations by segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Unaudited) (In thousands) REVENUES: Offshore Oil and Gas Construction $ 832,700 $ 872,268 $ 1,541,224$ 1,518,217Government Operations 261,397 225,764 518,502 416,358Power Generation Systems 471,591 698,071 1,000,164 1,314,369Adjustments and Eliminations(1) (689 ) (3,457 ) (1,628 ) (5,872) $ 1,564,999 $ 1,792,646 $ 3,058,262 $ 3,243,072 (1) Segment revenues are net of the following intersegment transfers and otheradjustments:Offshore Oil and Gas Construction Transfers $ 359 $ 3,150 $ 674 $5,393Government Operations Transfers 330 254 954 424Power Generation Systems Transfers - 53 - 55 $ 689 $ 3,457 $ 1,628 $ 5,872 OPERATING INCOME: Segment Operating Income: Offshore Oil and Gas Construction $ 66,991 $ 98,959 $ 114,208 $150,842Government Operations 48,821 31,705 85,871 60,906Power Generation Systems 42,334 106,564 98,838 170,500 $ 158,146 $ 237,228 $ 298,917 $ 382,248 Gains (Losses) on Asset Disposals - Net: Offshore Oil and Gas Construction $ 1,867 $ 46 $ 833 $ 1,842 Government Operations - - - - Power Generation Systems 30 (29 ) 42 9,618 $ 1,897 $ 17 $ 875 $ 11,460 Equity in Income (Loss) of Investees: Offshore Oil and Gas Construction $ (1,056 ) $ (996 ) $ (2,201 ) $(1,750 )Government Operations 8,652 10,798 17,354 19,547Power Generation Systems 1,501 (550 ) 3,144 2,125 $ 9,097 $ 9,252 $ 18,297 $ 19,922 Segment Income: Offshore Oil and Gas Construction $ 67,802 $ 98,009 $ 112,840 $150,934Government Operations 57,473 42,503 103,225 80,453Power Generation Systems 43,865 105,985 102,024 182,243 169,140 246,497 318,089 413,630Corporate (21,400 ) (15,373 ) (39,143 ) (25,394 )Total Operating Income $ 147,740 $ 231,124 $ 278,946 $ 388,236 |
| 6070 - EARNINGS PER SHARE | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| EARNINGS PER SHARE | |
| EARNINGS PER SHARE | NOTE 8 - EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings pershare: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Unaudited) (In thousands, except share and per share amounts) Basic: Net income for basic computation $ 92,555 $ 177,539 $ 170,247 $300,729 Weighted average common shares 229,273,441 226,862,500 228,794,113 226,247,335 Basic earnings per common share $ 0.40 $ 0.78 $ 0.74 $ 1.33 Diluted: Net income for diluted computation $ 92,555 $ 177,539 $ 170,247 $300,729 Weighted average common shares (basic) 229,273,441 226,862,500228,794,113 226,247,335Effect of dilutive securities:Stock options, restricted stock and performance shares 3,832,5083,546,260 4,051,985 4,013,475Adjusted weighted average common shares and assumed exercises of stock optionsand vesting of stock awards 233,105,949 230,408,760 232,846,098230,260,810 Diluted earnings per common share $ 0.40 $ 0.77 $ 0.73 $ 1.31 |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Document Period End Date | 2009-06-30 |
| Amendment Flag | true |
| Amendment Description | 30 day grace period |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Entity Information [Line Items] | |||
| Entity Registrant Name | McDermott International, Inc. | ||
| Entity Central Index Key | 0000708819 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | $14,800,000,000 | ||
| Entity Common Stock, Shares Outstanding | 229,905,704 |
