Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MDR | |
Entity Registrant Name | MCDERMOTT INTERNATIONAL INC | |
Entity Central Index Key | 708,819 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 238,972,816 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
Revenues | [1] | $ 805,857 | $ 414,595 | $ 2,402,857 | $ 1,494,489 |
Costs and Expenses: | |||||
Cost of operations | 720,961 | 370,271 | 2,121,942 | 1,394,062 | |
Selling, general and administrative expenses | 44,664 | 51,681 | 144,133 | 157,089 | |
Loss (gain) on disposal of assets | (100) | (4,818) | 1,443 | (46,362) | |
Impairment loss (recovery) | 6,808 | (10,664) | |||
Restructuring expenses | 6,346 | 4,724 | 32,126 | 12,112 | |
Total costs and expenses | 771,871 | 421,858 | 2,306,452 | 1,506,237 | |
Loss from Investments in Unconsolidated Affiliates | (4,526) | (3,448) | (18,748) | (5,647) | |
Operating Income (Loss) | [2] | 29,460 | (10,711) | 77,657 | (17,395) |
Other Income (Expense): | |||||
Interest expense, net | (13,015) | (11,847) | (38,179) | (50,531) | |
Gain (loss) on foreign currency, net | (1,373) | (2,397) | (898) | 143 | |
Other income (expense), net | 1,556 | 473 | 1,100 | (104) | |
Total other expense | (12,832) | (13,771) | (37,977) | (50,492) | |
Income (loss) before provision for income taxes and noncontrolling interests | 16,628 | (24,482) | 39,680 | (67,887) | |
Provision for income taxes | 9,094 | 1,464 | 30,504 | 9,741 | |
Net income (loss) | 7,534 | (25,946) | 9,176 | (77,628) | |
Less: net income attributable to noncontrolling interest | 3,868 | 4,306 | 8,491 | 6,541 | |
Net income (loss) attributable to McDermott International, Inc. | $ 3,666 | $ (30,252) | $ 685 | $ (84,169) | |
Net income (loss) attributable to McDermott International, Inc.: | |||||
Basic | $ 0.02 | $ (0.13) | $ (0.35) | ||
Diluted | $ 0.01 | $ (0.13) | $ (0.35) | ||
Shares used in the computation of income (loss) per share: | |||||
Basic: | 238,594,178 | 237,429,394 | 238,128,962 | 237,262,044 | |
Diluted: | 280,797,155 | 237,429,394 | 279,025,262 | 237,262,044 | |
[1] | Intersegment transactions included in revenues were not significant for either of the periods presented. | ||||
[2] | Operating results for the ASA segment included a $4 million impairment charge for the DB101 and $3 million of loss on disposal of this asset in the first and second quarters of 2015, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,534 | $ (25,946) | $ 9,176 | $ (77,628) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on investments | (27) | (7) | (11) | |
Foreign currency translation adjustment | (9,333) | (1,454) | (16,319) | (2,714) |
Gain (loss) on derivatives | (701) | (32,930) | 9,973 | (17,664) |
Other comprehensive loss, net of tax | (10,061) | (34,391) | (6,357) | (20,378) |
Total comprehensive income (loss) | (2,527) | (60,337) | 2,819 | (98,006) |
Less: comprehensive income attributable to non-controlling interests | 3,868 | 4,290 | 8,411 | 6,494 |
Comprehensive loss attributable to McDermott International, Inc. | $ (6,395) | $ (64,627) | $ (5,592) | $ (104,500) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 631,385 | $ 665,309 |
Restricted cash and cash equivalents | 135,816 | 187,585 |
Accounts receivable – trade, net | 123,183 | 143,370 |
Accounts receivable – other | 61,058 | 79,915 |
Contracts in progress | 515,418 | 357,617 |
Deferred income taxes | 8,298 | 7,514 |
Other current assets | 41,782 | 46,071 |
Total Current Assets | 1,516,940 | 1,487,381 |
Property, Plant and Equipment | 2,464,319 | 2,487,815 |
Less Accumulated depreciation | (860,011) | (830,467) |
Net Property, Plant and Equipment | 1,604,308 | 1,657,348 |
Accounts Receivable – Long-Term Retainages | 146,361 | 137,468 |
Investments in Unconsolidated Affiliates | 29,022 | 38,186 |
Deferred Income Taxes | 11,953 | 17,313 |
Investments | 729 | 2,216 |
Other Assets | 74,896 | 76,967 |
Total Assets | 3,384,209 | 3,416,879 |
Current Liabilities: | ||
Notes payable and current maturities of long-term debt | 27,749 | 27,026 |
Accounts payable | 303,790 | 219,384 |
Accrued liabilities | 377,663 | 369,749 |
Advance billings on contracts | 97,371 | 199,865 |
Deferred income taxes | 17,492 | 19,753 |
Income taxes payable | 14,547 | 25,165 |
Total Current Liabilities | 838,612 | 860,942 |
Long-Term Debt | 823,485 | 837,443 |
Self-Insurance | 19,589 | 17,026 |
Pension Liability | 16,729 | 18,403 |
Non-current Income Taxes | 49,669 | 49,229 |
Other Liabilities | $ 83,282 | $ 94,722 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 246,774,167 and 245,209,850 shares, respectively | $ 246,774 | $ 245,210 |
Capital in excess of par value (including prepaid common stock purchase contracts) | 1,685,395 | 1,676,815 |
Accumulated Deficit | (242,216) | (239,572) |
Treasury stock, at cost: 7,810,046 and 7,400,027 shares, respectively | (92,294) | (96,441) |
Accumulated other comprehensive loss | (104,085) | (97,808) |
Stockholders' Equity - McDermott International, Inc. | 1,493,574 | 1,488,204 |
Noncontrolling interest | 59,269 | 50,910 |
Total Equity | 1,552,843 | 1,539,114 |
Total Liabilities and Equity | $ 3,384,209 | $ 3,416,879 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 246,774,167 | 245,209,850 |
Treasury stock, shares | 7,810,046 | 7,400,027 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 9,176 | $ (77,628) | |
Non-cash items included in net income (loss): | |||
Depreciation and amortization | 75,982 | 68,655 | |
Drydock amortization | 13,910 | 15,567 | |
Stock-based compensation charges | 12,991 | 14,387 | |
Loss from investments in unconsolidated affiliates | 18,748 | 5,647 | |
Loss (gain) on disposal of assets | 1,443 | (46,362) | |
Impairment loss (recovery) | 6,808 | (10,664) | |
Restructuring expense (gain) | 11,954 | (2,235) | |
Deferred taxes | 2,315 | (4,175) | |
Other non-cash items | 3,164 | 5,210 | |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | |||
Accounts receivable | 11,294 | 44,368 | |
Net contracts in progress and advance billings on contracts | (260,317) | 10,353 | |
Accounts payable | 98,552 | (99,588) | |
Accrued and other current liabilities | (7,269) | (16,200) | |
Pension liability and accrued postretirement and employee benefits | (1,319) | 1,180 | |
Other assets and liabilities | (2,778) | (20,813) | |
TOTAL CASH USED IN OPERATING ACTIVITIES | (5,346) | (112,298) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | [1] | (66,118) | (216,526) |
Restricted cash and cash equivalents | 51,769 | (215,663) | |
Purchases of available-for-sale securities | (1,997) | ||
Sales and maturities of available-for-sale securities | 3,175 | 12,903 | |
Investments in unconsolidated affiliates | (6,960) | ||
Proceeds from asset dispositions | 10,669 | 70,252 | |
Other | 417 | (5,076) | |
TOTAL CASH USED IN INVESTING ACTIVITIES | (7,048) | (356,107) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from debt | 1,337,500 | ||
Repayment of debt | (18,004) | (289,542) | |
Debt issuance cost | (46,914) | ||
Distribution to noncontrolling interest | (24) | (5,002) | |
Other | (928) | (1,537) | |
TOTAL CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (18,956) | 994,505 | |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (2,574) | (851) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (33,924) | 525,249 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 665,309 | 118,702 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 631,385 | $ 643,951 | |
[1] | Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and nine months ended September 30, 2015 included $1.2 million and $10.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three months ended September 30, 2014 exclude $9.5 million in accrued liabilities related to capital expenditures and for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss ("AOCI") [Member] | Treasury Stock [Member] | Stockholders' Equity [Member] | Noncontrolling Interest ("NCI") [Member] |
Beginning Balance at Dec. 31, 2014 | $ 1,539,114 | $ 245,210 | $ 1,676,815 | $ (239,572) | $ (97,808) | $ (96,441) | $ 1,488,204 | $ 50,910 |
Beginning Balance (in shares) at Dec. 31, 2014 | 245,209,850 | |||||||
Net income (loss) | 9,176 | 685 | 685 | 8,491 | ||||
Other comprehensive income (loss), net of tax | (6,357) | (6,277) | (6,277) | (80) | ||||
Exercise of stock options | 678 | $ 196 | (7,274) | (3,329) | 11,085 | 678 | ||
Exercise of stock options (in shares) | 196,340 | |||||||
Share vesting | $ 1,401 | (1,401) | ||||||
Share vesting (in shares) | 1,400,735 | |||||||
Stock-based compensation charges | 11,850 | 17,207 | (5,357) | 11,850 | ||||
Purchase of common stock | (1,614) | (1,614) | (1,614) | |||||
Other | (4) | $ (33) | 48 | 33 | 48 | (52) | ||
Other (in Shares) | (32,758) | |||||||
Ending Balance at Sep. 30, 2015 | $ 1,552,843 | $ 246,774 | $ 1,685,395 | $ (242,216) | $ (104,085) | $ (92,294) | $ 1,493,574 | $ 59,269 |
Ending Balance (in shares) at Sep. 30, 2015 | 246,774,167 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations McDermott International, Inc. (“MII”), a corporation incorporated under the laws of the Republic of Panama in 1959, is an engineering, procurement, construction and installation (“EPCI”) company focused on designing and executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services, we deliver fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. Operating in approximately 20 countries across the Americas, Europe, Africa, the Middle East and Asia, our integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. We report our financial results under three reporting segments, consisting of the Americas, Europe and Africa (“AEA”) segment, the Middle East (“MEA”) segment and the Asia (“ASA”) segment. We support our activities with comprehensive project management and procurement services, while utilizing our fully integrated capabilities in both shallow water and deepwater construction. Our customers include national, major integrated and other oil and gas companies, and we operate in most major offshore oil and gas producing regions throughout the world. We execute our contracts through a variety of methods, principally fixed-price, but also including cost reimbursable, cost-plus, day-rate and unit-rate basis or some combination of those methods. In these notes to our accompanying unaudited Consolidated Financial Statements, unless the context otherwise indicates, “we,” “us” and “our” mean MII and its consolidated subsidiaries. Basis of Presentation The accompanying Consolidated Financial Statements are unaudited and have been prepared from our books and records in accordance with Rule 10-1 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of our management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of results of operations for a full year. These Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and notes thereto included in MII’s Current Report on Form 8-K filed with the SEC on May 11, 2015. Classification During the quarter ended September 30, 2014, we committed to a plan to sell certain vessel equipment, including dynamic positioning thrusters and a deepwater pipelay winch system. These assets were classified as held for sale in subsequent quarterly and annual financial statements. In June 2015, we reclassified these assets as held for use in Property, Plant and Equipment in our Consolidated Balance Sheet. The decision to reclassify these assets was based on our determination not to proceed with a sale and to explore alternative uses for these assets within our vessel fleet instead, which we expect to be economically advantageous compared to a sale in the current environment. Our Consolidated Financial Statements classify current derivative financial instrument assets derivative financial instrument liabilities Accounts receivable–other and Accounts payable, respectively. Recently Issued and Adopted Accounting Guidance Debt— In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-03, , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of debt issuance costs will continue to be calculated using the interest method and reported as interest expense. In August 2015, the FASB issued ASU 2015-15, Interest Imputation of Interest—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Retrospective application of those ASUs are required for public entities for annual and interim periods beginning on or after December 15, 2015, and early adoption is permitted. We adopted ASU 2015-03 and ASU 2015-15 in the first quarter and the third quarter of 2015, respectively. As a result, our accompanying Consolidated Financial Statements reflect debt issuance costs related to long-term debt as components of Long-term debt. These costs were previously reported by us as Other Assets (see Note 7). Costs associated with line-of-credit arrangements continue to be reported as Other Assets. All comparable periods presented have been revised to reflect this change. Extraordinary Items— In January 2015, the FASB issued ASU 2015-01, , which eliminates the concept of extraordinary items. Under this new guidance, entities will no longer be required to separately classify, present and disclose extraordinary events and transactions. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. We adopted this ASU in the second quarter of 2015. Our adoption of this ASU did not have any impact on the accompanying Consolidated Financial Statements. Discontinued Operations— In April 2014, the FASB issued ASU 2014-08, , which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. ASU 2014-08 also requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The pronouncement is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The application of this ASU did not have any impact on the accompanying Consolidated Financial Statements. Accounting Guidance Issued But Not Adopted as of September 30, 2015 Consolidation— In February 2015, the FASB issued ASU 2015-02, , which amends and changes the consolidation analysis currently required under U.S. GAAP. This ASU modifies the process used to evaluate whether limited partnerships and similar entities are variable interest entities or voting interest entities; affects the analysis performed by reporting entities regarding variable interest entities, particularly those with fee arrangements and related party relationships; and provides a scope exception for certain investment funds. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. We are currently assessing the impact of these amendments on our future Consolidated Financial Statements and related disclosures. Going Concern— In August 2014, the FASB issued ASU 2014-15, . Currently, there is no guidance in effect under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, we will be required to assess our ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about our ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. We are currently assessing the impact of the adoption of ASU 2014-15 on our future Consolidated Financial Statements and related disclosures. Revenue— In May 2014, the FASB issued ASU 2014-09, . This ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, We are currently evaluating the requirements of these ASUs and have not yet determined their impact on our future Consolidated Financial Statements and related disclosures. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2015 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 2—REVENUE RECOGNITION Unapproved Change Orders As of September 30, 2015, total unapproved change orders included in our estimates at completion aggregated $146.1 million, of which approximately $22.5 million was included in backlog. As of September 30, 2014, total unapproved change orders included in our estimates at completion aggregated $352.3 million, of which approximately $168.9 million was included in backlog. Claims Revenue The amount of revenues and costs included in our estimates at completion associated with claims, all of which related to our MEA segment, was $9.8 million as of September 30, 2015 and $6.5 million as of September 31, 2014. In the accompanying Consolidated Financial Statements, for the three and nine months ended September 30, 2015 and 2014, no material claims were included in revenues or costs. None of the pending claims reflected in our estimates at completion as of September 30, 2015 were the subject of any litigation proceedings. Deferred Profit Recognition For the three and nine months ended September 30, 2015 and 2014, we did not account for any projects under our deferred profit recognition policy. Completed Contract Method For the three and nine months ended September 30, 2015 and 2014, we did not account for any contracts under the completed contract method. Loss Recognition As of September 30, 2015, we have provided for our estimated costs to complete on all of our ongoing contracts. However, it is possible that current estimates could change due to unforeseen events, which could result in adjustments to overall contract costs. Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. For all contracts, if a current estimate of total contract cost indicates a loss, the projected loss is recognized in full when determined. Of the September 30, 2015 backlog, approximately $317 million primarily related to three active projects that were in loss positions, as a result of which future revenues are expected to equal costs when recognized. Included in this amount was $86 million of backlog associated with an EPCI project, PB Litoral, in Mexico, which is expected to be completed in the first quarter of 2016, and $61 million of backlog pertaining to the five-year Agile |
USE OF ESTIMATES
USE OF ESTIMATES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
USE OF ESTIMATES | NOTE 3—USE OF ESTIMATES We use estimates and assumptions to prepare our financial statements in conformity with U.S. GAAP. Those estimates and assumptions affect the amounts we report in our consolidated financial statements and accompanying notes. Our actual results could differ from those estimates, and variances could materially affect our financial condition and results of operations in future periods. Changes in project estimates generally exclude change orders and changes in scope, but may include, without limitation, changes in cost recovery estimates, unexpected changes in weather conditions, changes in productivity, unidentified required vessel repairs, customer and vendor delays and other costs. We generally expect to experience a reasonable amount of unanticipated events, and some of those events can result in significant cost increases above cost amounts we previously estimated. As of September 30, 2015, we have provided for our estimated costs to complete on all our ongoing contracts. However, it is possible that current estimates could change due to unforeseen events, which could result in adjustments to overall contract costs. Variations from estimated contract performance could result in material adjustments to operating results. For all contracts, if a current estimate of total contract cost indicates a loss, the projected loss is recognized in full when determined. The following is a discussion of our most significant changes in estimates that impacted operating income for the three and nine months ended September 30, 2015 and 2014. Three months ended September 30, 2015 Operating income for the three months ended September 30, 2015 was impacted by net unfavorable changes in cost estimates totaling approximately $8 million. The AEA segment deteriorated by a net $11 million due to changes in estimates during the three months ended September 30, 2015. Results for the third quarter of 2015 included $6 million due to changes in marine campaign execution plan on the PB Litoral EPCI project in Mexico and charges associated with a legal settlement as discussed in Note 14. The changes in the PB Litoral marine campaign execution plan were due to carryover of offshore scope and revised cost estimates for hookup campaign. These were partially offset by the extension of the project completion date on the PB Litoral project, which resulted in a $13 million reversal of liquidated damage reserves. The MEA segment had net favorable changes in estimates aggregating approximately $6 million. Projects in Saudi Arabia were positively impacted by: (1) a $6 million favorable change order for vessel downtime; (2) productivity improvements and associated cost savings on a cable-lay project in Saudi Arabia totaling approximately $3 million; and (3) $1 million in net positive changes in estimates on multiple projects, which were not individually material. These net favorable changes were partially offset by a $4 million increase in pipelay cost estimates on a project in the U.A.E., primarily due to changes in the execution plan as a result of needing to substitute with a third party vessel and hookup associated issues. The ASA segment had net unfavorable changes in estimates aggregating approximately $3 million. The deterioration was primarily due to $8 million of cost overruns and weather downtime on an installation project in Brunei, partially offset by $5 million of net positive changes in estimates on multiple projects, which were not individually material. Nine months ended September 30, 2015 Operating income for the nine months ended September 30, 2015 was positively impacted by net favorable changes in cost estimates totaling approximately $21 million. The AEA segment had net unfavorable changes in estimates aggregating approximately $1 million. For the nine months ended September 30, 2015, the AEA segment was positively impacted by: (1) $13 million reversal of liquidated damage reserves due to the extension of the PB Litoral project completion date; (2) $4 million due to productivity improvements on the Agile North Ocean 105 NO 105 The MEA segment had net favorable changes in estimates aggregating approximately $16 million. Three projects in Saudi Arabia were positively impacted by: 1) $11 million of changes in estimates mostly due to productivity improvements and associated cost savings on the Intermac 406, The ASA segment had net favorable changes in estimates aggregating approximately $6 million. Improvements were driven by $4 million due to productivity gains and improvements in cost estimates realized on the Gorgon MRU fabrication project, as well as $10 million in net improvements on multiple projects that were not individually material. Those improvements were partially offset by $8 million in cost overruns resulting from weather downtime on an installation project in Brunei. Three months ended September 30, 2014 Operating income for the three months ended September 30, 2014 was positively impacted by changes in cost estimates relating to projects in each of our segments. The AEA segment improved by a net $1.5 million from changes in estimates on five projects. On Jack & St. Malo, a subsea project in the Gulf of Mexico completed during the period, project close-out savings on marine spread costs and increased cost recovery based on positive developments from the ongoing negotiations with the customer resulted in a reduction of project losses of $12.4 million. Two projects completed earlier in 2014 improved by an aggregate of approximately $4.8 million based on positive developments from ongoing project close-out negotiations with the customers. These improvements were partially offset by negative changes of approximately $10.9 million on the PB Litoral project, primarily due to increased cost estimates to complete the project as a result of a revised fabrication execution plan, and reduced cost recovery of approximately $4.8 million on a fabrication project in Morgan City completed during 2013, based on an agreement in principle reached with the customer during the three months ended September 30, 2014, which resulted in lower than anticipated recoveries. The MEA segment deteriorated by a net amount of approximately $5.4 million due to change in estimates during the three months ended September 30, 2014. On one EPCI project in Saudi Arabia, estimated costs to complete increased by $7.9 million, primarily as a result of vessel downtime due to weather and standby delays (some of which was recovered from the customer in 2015, but those recoveries were not recognizable at September 30, 2014). On two other EPCI projects in Saudi Arabia, estimated costs to complete increased by an aggregate of $6.7 million, as a result of revisions to project execution plans, primarily due to extended offshore hookup campaigns, increased vessel mobilization activities, and delays in the completion of onshore activities. On another EPCI project in Saudi Arabia, we increased our overall estimated costs to complete by approximately $8.6 million, reflecting the costs of an incremental mobilization and inefficiencies of executing out-of-sequence work due to a revised execution plan, which resulted from delayed access to the project site. These negative changes were offset by an improvement of approximately $17.8 million on a pipelay project in the Caspian, primarily due to increased cost recovery estimates based on positive developments during the three months ended September 30, 2014 from the ongoing project close-out process with the customer. This project was completed earlier in 2014. The ASA segment was positively impacted by favorable changes in estimates aggregating approximately $20.2 million from three projects. On a marine installation project in Brunei, reduction in estimated costs to complete from productivity improvements on marine vessels and offshore support activities resulted in a favorable change of approximately $10.8 million. On two previously completed projects, insurance claim collection and final project close-out adjustments resulted in a combined additional recovery of approximately $9.5 million during the three months ended September 30, 2014. Nine months ended September 30, 2014 Operating income for the nine months ended September 30, 2014 was positively impacted by changes in cost estimates relating to projects in each of our segments. The AEA segment was negatively impacted by net unfavorable changes in estimates aggregating approximately $41.5 million associated with five projects. On the PB Litoral project we increased our estimated costs to complete by approximately $66.3 million due to: 1) liquidated damages and extended project management costs arising from unexpected project delays and projected fabrication cost increases reflecting reduced productivity and execution plan changes to mitigate further project delays; and 2) procurement and marine installation cost increases. This project is in a loss position and is estimated to be completed in the first quarter of 2016. On the Jack & St. Malo project, a subsea project in the Gulf of Mexico, we increased our estimated costs to complete by approximately $10.1 million, primarily due to increased costs from equipment downtime issues on the North Ocean 102 “NO 102” The MEA segment was negatively impacted by net unfavorable changes aggregating approximately $10.7 million due to changes in four projects. On two EPCI projects in Saudi Arabia, we increased our estimated costs at completion by approximately $42.4 million, primarily as a result of vessel downtime due to weather and standby delays (some of which was recovered from the customer in 2015, but those recoveries were not recognizable at September 30, 2014), reduced productivity levels and increased cost estimates to complete the onshore scope of one of the projects. On another EPCI project in the Neutral Zone, we increased our overall estimated costs to complete by approximately $15.2 million to reflect cost overruns related to: 1) the onshore work, which was substantially completed in July 2014; and 2) delays in completing the offshore work due to delayed access to the project site, resulting in a revised execution plan. The revised execution plan included the costs of an incremental mobilization and reflected inefficiencies of executing out-of-sequence work. These negative changes were partially offset by approximately $46.9 million of increased cost recovery estimates on a pipelay project in the Caspian, based on positive developments during the nine months ended September 30, 2014 from the ongoing project close-out process with the customer. This project was substantially completed in June 2014. The ASA segment experienced net favorable changes in estimates aggregating approximately $53.5 million due to changes in estimates on four projects. Changes in estimates on the Siakap Subsea Development (“Siakap”), a subsea project in Malaysia, resulted in improvements of approximately $31.5 million during the nine months ended September 30, 2014, primarily related to productivity improvements on our marine vessels and offshore support activities, as well as project close-out savings. On a marine installation project in Brunei, a reduction in estimated costs to complete from productivity improvements on marine vessels and offshore support activities resulted in a favorable change of approximately $11.8 million. On two previously completed projects, insurance claim collections and final project close-out adjustments resulted in a combined additional recovery of approximately $10.3 million during the nine months ended September 30, 2014. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4—ACCOUNTS RECEIVABLE Accounts Receivable—Trade, Net A summary of contract receivables is as follows: September 30, 2015 December 31, 2014 (in thousands) Contract receivables: Contracts in progress $ 108,173 $ 106,174 Completed contracts 21,128 34,698 Retainages 15,377 28,586 Unbilled 4,303 4,303 Less allowances (25,798 ) (30,391 ) Accounts receivable-trade, net $ 123,183 $ 143,370 Contract retainages generally represent amounts withheld by our customers until project completion, in accordance with the terms of the applicable contracts. The following is a summary of retainages on our contracts: September 30, 2015 December 31, 2014 (in thousands) Retainages expected to be collected within one year $ 15,377 $ 28,586 Retainages expected to be collected after one year 146,361 137,468 Total retainages $ 161,738 $ 166,054 |
CONTRACTS IN PROGRESS AND ADVAN
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS | 9 Months Ended |
Sep. 30, 2015 | |
Contractors [Abstract] | |
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS | NOTE 5—CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS Components of contracts in progress and advance billings on contracts are as follows: September 30, 2015 December 31, 2014 (In thousands) Costs incurred less costs of revenue recognized $ 106,242 $ 90,191 Revenues recognized less billings to customers 409,176 267,426 Contracts in Progress $ 515,418 $ 357,617 Billings to customers less revenue recognized 193,448 578,896 Costs incurred less costs of revenue recognized (96,077 ) (379,031 ) Advance Billings on Contracts $ 97,371 $ 199,865 |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
RESTRUCTURING | NOTE 6—RESTRUCTURING In 2014 we completed a major review of our cost structure, and implemented a plan, which we referred to as the McDermott Profitability Initiative During 2013 and 2014, we implemented a restructuring of our Americas operations, which involved our Morgan City, Louisiana, Houston, Texas, New Orleans, Louisiana and some Brazil locations. The restructuring involved, among other things, reductions of management, administrative, fabrication and engineering personnel, and the discontinued utilization of the Morgan City facility. We completed a Corporate restructuring during 2014. Costs associated with our Corporate restructuring activities primarily included severance, relocation and other personnel-related costs and costs for advisors, as well as costs for certain executive management changes that became effective during the fourth quarter of 2013. The following tables present amounts incurred during the three and nine months ended September 30, 2015 and 2014, as well as amounts incurred from the inception of our restructuring efforts up to September 30, 2015 and amounts expected to be incurred in the future by major type of cost and by segment. Incurred in the three months ended September 30, 2015 Incurred in the three months ended September 30, 2014 Incurred in the nine months ended September 30, 2015 Incurred in the nine months ended September 30, 2014 Incurred from inception to September 30, 2015 Estimate of remaining amounts to be incurred Total (In thousands) Americas Restructuring Impairments and write offs $ - $ 100 $ - $ (1,240 ) $ 12,923 $ - $ 12,923 Severance and other personnel-related costs - (155 ) 601 3,099 13,981 - 13,981 Morgan City environmental reserve - - - - 5,925 - 5,925 Morgan City yard-related expenses (27 ) 2,879 1,707 5,528 12,557 12,557 Other - - - - 158 - 158 (27 ) 2,824 2,308 7,387 45,544 - 45,544 Corporate Restructuring Severance and other personnel-related costs - 53 - 961 2,599 - 2,599 Legal and other advisor fees - 1,117 - 3,034 3,204 - 3,204 Other - 730 - 730 798 - 798 - 1,900 - 4,725 6,601 - 6,601 MPI Severance and other personnel-related costs AEA 2,360 - 6,411 - 6,411 1,694 8,105 MEA 71 - 982 - 982 - 982 ASA 387 - 3,973 - 3,973 5,200 9,173 Corporate and other - - 1,119 - 1,119 - 1,119 Asset impairment and disposal ASA - - 7,471 - 7,471 - 7,471 Legal and other advisor fees - Corporate 3,555 - 6,335 - 10,338 - 10,338 ASA 1,304 1,304 Other - ASA - - 3,527 - 3,527 5,806 9,333 Corporate and other - - - - - 700 700 6,373 - 29,818 - 33,821 14,704 48,525 Total $ 6,346 $ 4,724 $ 32,126 $ 12,112 $ 85,966 $ 14,704 $ 100,670 By segment AEA $ 2,333 $ 2,824 $ 8,719 $ 7,387 $ 51,955 $ 1,694 $ 53,649 MEA 71 - 982 - 982 - 982 ASA 387 - 14,971 - 14,971 12,310 27,281 Corporate 3,555 1,900 7,454 4,725 18,058 700 18,758 Total $ 6,346 $ 4,724 $ 32,126 $ 12,112 $ 85,966 $ 14,704 $ 100,670 In the first quarter of 2015, we reclassified certain MPI-related legal and other advisory fees of $4 million incurred in 2014 from Corporate restructuring costs to MPI costs. The following table presents a roll forward of accrued liabilities associated with our restructuring activities: December 31, 2014 Accruals Payments/ Reversals September 30, 2015 (In thousands) Morgan City environmental reserve $ 3,675 $ - $ (2,101 ) $ 1,574 Morgan City yard-related expenses and other 373 343 (453 ) 263 MPI related accruals - 6,293 (1,812 ) 4,481 Total $ 4,048 $ 6,636 $ (4,366 ) $ 6,318 |
LONG-TERM DEBT AND NOTES PAYABL
LONG-TERM DEBT AND NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND NOTES PAYABLE | NOTE 7—LONG-TERM DEBT AND NOTES PAYABLE The carrying values of our long-term debt obligations are as follows: September 30, 2015 December 31, 2014 (In thousands) Long-term debt consists of: Senior Notes $ 491,537 $ 490,354 Term Loan 290,438 291,424 North Ocean 105 Construction Financing 42,213 45,888 Amortizing Notes 24,329 33,258 Capital lease obligation 2,717 2,802 Other financing - 743 851,234 864,469 Less: Amounts due within one year 27,749 27,026 Total long-term debt $ 823,485 $ 837,443 LC Facility and Cash-Collateralized Bilateral Letters of Credit As of September 30, 2015 and December 31, 2014, the aggregate face amount of letters of credit issued under our $400 million first-lien/first-out, three-year letter of credit facility (the “LC Facility”) provided under our principal credit agreement (“the Credit Agreement”) was $320.4 million and $195.8 million, respectively. No financial letters of credit have been issued under the LC Facility. In October 2015, we entered into an Amendment No. 1 and Commitment Increase Supplement (the “Commitment Increase Supplement”), which amended the Credit Agreement primarily to increase the existing letter of credit capacity from $400 million to $520 million, by adding to the Credit Agreement a new letter of credit lender and by allowing existing letter of credit lenders to increase their respective letter of credit commitments. Costs associated with the Commitment Increase Supplement were not material. As of September 30, 2015, we had outstanding an aggregate face amount of approximately $115.7 million of cash collateralized letters of credit issued on a bilateral basis outside the LC Facility, including financial letters of credit of $46.5 million. Financial letters of credit represent letters of credit that do not support ordinary course project performance obligations or bids. As of December 31, 2014, we had outstanding an aggregate face amount of approximately $88.8 million of cash collateralized letters of credit issued on a bilateral basis outside the LC Facility, including financial letters of credit of $19.7 million. We have included the supporting cash collateral in restricted cash and cash equivalents in the accompanying Consolidated Balance Sheets. Bank Guarantees As of September 30, 2015 and December 31, 2014, bank guarantees issued under general reimbursement agreements in support of contracting activities in the Middle East and India totaled $89.2 million and $56.2 million, respectively. Surety Bonds As of September 30, 2015 and December 31, 2014, surety bonds issued under general agreements of indemnity in favor of surety underwriters based in Mexico in support of contracting activities of our subsidiaries J. Ray McDermott de México, S.A. de C.V. and McDermott, Inc. totaled $49.4 million and $52.5 million, respectively. Debt Issuance Costs Debt issuance costs of $21.8 million and $27.1 million as of September 30, 2015 and December 31, 2014, respectively, are included in the above carrying values of our long-term debt obligations. |
PENSION PLANS
PENSION PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
PENSION PLANS | NOTE 8—PENSION PLANS In 2014 we elected to change our accounting method for recognizing actuarial gains and losses for our pension and other postretirement benefit plans. In connection with our accounting change we have revised previously reported amounts to conform to our current method of accounting. Net periodic benefit for our non-contributory qualified defined benefit pension plan and several of our non-qualified supplemental defined benefit pension plans (the “Domestic Plans”) and our J. Ray McDermott, S.A. Third Country National Employees Pension Plan (the “TCN Plan”) includes the following components: Domestic Plans Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Interest cost $ 5,403 $ 6,743 $ 16,210 $ 20,230 Expected return on plan assets (6,676 ) (6,875 ) (20,030 ) (20,626 ) Net periodic benefit $ (1,273 ) $ (132 ) $ (3,820 ) $ (396 ) TCN Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Interest cost $ 407 $ 475 $ 1,220 $ 1,425 Expected return on plan assets (710 ) (741 ) (2,130 ) (2,221 ) Net periodic benefit $ (303 ) $ (266 ) $ (910 ) $ (796 ) |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 9—DERIVATIVE FINANCIAL INSTRUMENTS We enter into derivative financial instruments primarily to hedge certain firm purchase commitments and forecasted transactions denominated in foreign currencies. We record these contracts at fair value on our Consolidated Balance Sheets. Depending on the hedge designation at the inception of the contract, the related gains and losses on these contracts are either: (1) deferred as a component of AOCI until the hedged item is recognized in earnings; (2) offset against the change in fair value of the hedged firm commitment through earnings; or (3) recognized immediately in earnings. At inception and on an ongoing basis, we assess the hedging relationship to determine its effectiveness in offsetting changes in cash flows or fair value attributable to the hedged risk. We exclude from our assessment of effectiveness the portion of the fair value of the forward contracts attributable to the difference between spot exchange rates and forward exchange rates. The ineffective portion of a derivative’s change in fair value and any portion excluded from the assessment of effectiveness are immediately recognized in earnings. Gains and losses on derivative financial instruments that are immediately recognized in earnings are included as a component of gain (loss) on foreign currency-net in the accompanying Consolidated Statements of Operations. As of September 30, 2015, the majority of our foreign currency forward contracts were designated as cash flow hedging instruments. In addition, we deferred approximately $72.8 million of net losses on these derivative financial instruments in AOCI, and we expect to reclassify approximately $55.6 million of deferred losses out of AOCI by September 30, 2016, as hedged items are recognized. The notional value of our outstanding derivative contracts totaled $673.1 million at September 30, 2015, with maturities extending through 2017. Of this amount, approximately $447 million is associated with various foreign currency expenditures we expect to incur on one of our ASA segment EPCI projects. These instruments consist of contracts to purchase or sell foreign-denominated currencies. As of September 30, 2015, the fair value of these contracts was in a net liability position totaling $47.2 million. The fair value of outstanding derivative instruments is determined using observable financial market inputs, such as quoted market prices, and is classified as Level 2 in nature within the fair value hierarchy. The following tables summarize our derivative financial instruments: Asset and Liability Derivatives September 30, 2015 December 31, 2014 (in thousands) Derivatives Designated as Hedges: Location: Other current assets $ 1,096 $ 1,173 Other assets - 16 Total asset derivatives $ 1,096 $ 1,189 Accrued Liabilities $ 42,049 $ 32,431 Other liabilities 6,277 15,670 Total liability derivatives $ 48,326 $ 48,101 The Effects of Derivative Instruments on our Financial Statements Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Derivatives Designated as Hedges: Amount of gain (loss) recognized in other comprehensive income (loss) $ (28,248 ) $ (39,563 ) $ (56,904 ) $ (26,764 ) Income reclassified from AOCI into income (loss): effective portion Location: Cost of operations 27,547 6,788 66,973 7,283 Gain(loss) recognized in income (loss): ineffective portion and amount excluded from effectiveness testing Location : Gain (loss) on foreign currency—net (1,329 ) (386 ) 2,535 3,842 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10—FAIR VALUE MEASUREMENTS The following is a summary of our available-for-sale securities measured at fair value: September 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Mutual funds (1) $ 729 $ - $ 729 $ - Total $ 729 $ - $ 729 $ - December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Mutual funds (1) $ 2,216 $ - $ 2,216 $ - Commercial paper 1,699 - 1,699 - Total $ 3,915 $ - $ 3,915 $ - (1) Various U.S. equities and other investments managed under mutual funds Our Level 2 investments consist primarily of commercial paper, asset-backed commercial paper notes backed by a pool of mortgage-backed securities and mutual funds. The fair value of our Level 2 investments was determined using a market approach that is based on quoted prices and other information for similar or identical instruments . Other Financial Instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments: Cash and cash equivalents and restricted cash and cash equivalents . The carrying amounts that we have reported in the accompanying Consolidated Balance Sheets for cash, cash equivalents and restricted cash and cash equivalents approximate their fair values and are classified as Level 1 within the fair value hierarchy. Short-term and long-term debt. The fair value of debt instruments is classified as Level 2 within the fair value hierarchy and is valued using a market approach based on quoted prices for similar instruments traded in active markets. Where quoted prices are not available, the income approach is used to value these instruments based on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. Forward contracts . The fair value of forward contracts is classified as Level 2 within the fair value hierarchy and is valued using observable market parameters for similar instruments traded in active markets. Where quoted prices are not available, the income approach is used to value forward contracts, which discounts future cash flows based on current market expectations and credit risk. The estimated fair values of certain of our financial instruments are as follows: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Balance Sheet Instruments (In thousands) Cash and cash equivalents $ 631,385 $ 631,385 $ 665,309 $ 665,309 Restricted cash and cash equivalents 135,816 135,816 187,585 187,585 Investments 729 729 3,915 3,915 Debt (851,234 ) (805,325 ) (864,469 ) (737,980 ) Forward contracts (47,230 ) (47,230 ) (46,912 ) (46,912 ) Non-financial Instruments In accordance with ASC 360-10, Property, Plant and Equipment DB101, In the second quarter of 2015, we abandoned a marine pipelay welding system project and recognized a $6.6 million non-cash impairment charge, which equaled the carrying value of that asset . In June 2014, we cancelled a pipelay system originally intended for the Construction Support Vessel 108 ( “CSV 108”) . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 11—ACCUMULATED OTHER COMPREHENSIVE LOSS The components of AOCI included in stockholders’ equity are as follows: September 30, 2015 December 31, 2014 (In thousands) Foreign currency translation adjustments $ (31,531 ) $ (15,212 ) Net gain on investments 230 241 Net loss on derivative financial instruments (72,784 ) (82,837 ) Accumulated other comprehensive loss $ (104,085 ) $ (97,808 ) The following table presents the components of AOCI and the amounts that were reclassified during the period: Foreign currency gain (loss) Unrealized holding loss on investment Deferred gain (loss) on derivatives (1) TOTAL For the three months ended September 30, 2015 (in thousands) Balance, June 30, 2015 $ (22,198 ) $ 257 $ (72,083 ) $ (94,024 ) Other comprehensive (loss) before reclassification (9,333 ) (27 ) (28,249 ) (37,609 ) Amounts reclassified from AOCI - - 27,548 (2) 27,548 Net current period other comprehensive loss (9,333 ) (27 ) (701 ) (10,061 ) Balance, September 30, 2015 $ (31,531 ) $ 230 $ (72,784 ) $ (104,085 ) For the nine months ended September 30, 2015 Balance, December 31, 2014 $ (15,212 ) $ 241 $ (82,837 ) $ (97,808 ) Other comprehensive (loss) before reclassification (14,076 ) (11 ) (56,905 ) (70,992 ) Amounts reclassified from AOCI (2,243 ) - 66,958 (2) 64,715 Net current period other comprehensive income (loss) (16,319 ) (11 ) 10,053 (6,277 ) Balance, September 30, 2015 $ (31,531 ) $ 230 $ (72,784 ) $ (104,085 ) Foreign currency gain (loss) Unrealized holding loss on investment Deferred gain (loss) on derivatives (1) TOTAL For the three months ended September 30, 2014 (in thousands) Balance, June 30, 2014 $ (3,821 ) $ 245 $ (30,090 ) $ (33,666 ) Other comprehensive (loss) before reclassification (1,455 ) (7 ) (39,563 ) (41,025 ) Amounts reclassified from AOCI - - 6,650 (2) 6,650 Net current period other comprehensive (loss) (1,455 ) (7 ) (32,913 ) (34,375 ) Balance, September 30, 2014 $ (5,276 ) $ 238 $ (63,003 ) $ (68,041 ) For the nine months ended September 30, 2014 Balance, December 31, 2013 $ (2,562 ) $ 238 $ (45,386 ) $ (47,710 ) Other comprehensive (loss) before reclassification (2,714 ) - (26,764 ) (29,478 ) Amounts reclassified from AOCI - - 9,147 (2) 9,147 Net current period other comprehensive (loss) (2,714 ) - (17,617 ) (20,331 ) Balance, September 30, 2014 $ (5,276 ) $ 238 $ (63,003 ) $ (68,041 ) 1 Refer to Note 9 for additional details. 2 Reclassified to cost of operations and gain on foreign currency, net. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 12—EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except share and per share amounts) Net income (loss) attributable to McDermott International, Inc. $ 3,666 $ (30,252 ) $ 685 $ (84,169 ) Weighted average common shares (basic) 238,594,178 237,429,394 238,128,962 237,262,044 Effect of dilutive securities: Tangible equity units 40,896,300 - 40,896,300 - Stock options, restricted stock and restricted stock units 1,306,677 - - - Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) 280,797,155 237,429,394 279,025,262 237,262,044 Basic loss per share Net income (loss) attributable to McDermott International, Inc. $ 0.02 $ (0.13 ) $ - $ (0.35 ) Diluted loss per share: Adjusted net income (loss) attributable to McDermott International, Inc. $ 0.01 $ (0.13 ) $ - $ (0.35 ) Approximately 2.9 million and 11.1 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share because they were anti-dilutive for the three and nine months ended September 30, 2015, respectively. Approximately 2.9 million and 3.0 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share because they were anti-dilutive for the three and nine months ended September 30, 2014, respectively. Potential dilutive common shares for the settlement of our common stock purchase contracts, a component of our tangible equity units or “TEUs”, totaling 40.9 million shares were considered in the calculation of diluted weighted-average shares for the three and nine months ended September 30, 2015. Potential dilutive common shares for the settlement of the common stock purchase contracts totaling 40.9 million and 27.3 million shares were considered in the calculation of diluted weighted-average shares for three months and nine months ended September 30, 2014, respectively. However, due to our net loss position for both of those periods, they have not been reflected above because they would have been anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 13—SEGMENT REPORTING In the first quarter of 2015, we completed changes to our organizational structure which resulted in the realignment of our reporting segments. Our North Sea and Africa operations were previously aggregated into the Middle East reporting segment. However, the responsibility for business decisions relating to the North Sea and Africa was moved to our Americas reporting segment in the first quarter of 2015. As a result, the North Sea and Africa businesses are now reflected in our Americas segment, now referred to as Americas, Europe and Africa, or “AEA”. All comparable presented have been revised to reflect this change. Accordingly, we report financial results under three reporting segments consisting of the AEA, Middle East (or “MEA”) and Asia (or “ASA”) segments. We also report certain corporate and other non-operating activities under the heading “Corporate and other,” which primarily reflects corporate personnel and activities, incentive compensation programs and other costs that are generally fully allocated to our reporting segments. However, corporate restructuring costs associated with our corporate reorganization are not allocated to our reporting segments. Reporting segments are measured based on operating income, which is defined as revenues reduced by total costs and expenses and equity in income (loss) of unconsolidated affiliates. Summarized financial information is shown in the following tables: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Revenues (1) AEA $ 96,371 $ 117,509 $ 344,385 $ 425,060 MEA 318,346 91,659 892,367 588,195 ASA 391,140 205,427 1,166,105 481,234 Total revenues $ 805,857 $ 414,595 $ 2,402,857 $ 1,494,489 Operating income (loss) (2) AEA $ (19,784 ) $ (11,853 ) $ (125 ) $ (41,855 ) MEA 38,981 (17,982 ) 74,952 (1,049 ) ASA 13,886 21,022 12,273 30,232 Corporate (3,623 ) (1,898 ) (9,443 ) (4,723 ) Total operating income (loss) $ 29,460 $ (10,711 ) $ 77,657 $ (17,395 ) Capital expenditures (3) AEA $ 3,286 $ 7,249 $ 6,715 $ 47,602 MEA 2,735 47,354 17,677 76,739 ASA 11,648 5,316 41,141 83,613 Corporate and Other 464 1,650 585 8,572 Total capital expenditures $ 18,133 $ 61,569 $ 66,118 $ 216,526 Depreciation and amortization: AEA $ 9,832 $ 7,897 $ 33,119 $ 23,284 MEA 8,393 7,235 23,150 24,732 ASA 4,191 5,061 11,969 15,048 Corporate and Other 2,195 2,215 7,744 5,591 Total depreciation and amortization $ 24,611 $ 22,408 $ 75,982 $ 68,655 Drydock amortization: AEA $ 3,133 $ 3,162 $ 9,377 $ 8,707 MEA 443 501 1,606 1,398 ASA 676 1,938 2,927 5,462 Total drydock amortization $ 4,252 $ 5,601 $ 13,910 $ 15,567 (1) Intersegment transactions included in revenues were not significant for either of the periods presented. (2) DB101 (3) Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and nine months ended September 30, 2015 included $1.2 million and $10.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three months ended September 30, 2014 exclude $9.5 million in accrued liabilities related to capital expenditures and for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. September 30, 2015 December 31, 2014 (In thousands) Segment assets: AEA $ 611,268 $ 976,179 MEA 1,005,852 990,671 ASA 1,004,896 601,394 Corporate and Other 762,193 848,635 $ 3,384,209 $ 3,416,879 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14—COMMITMENTS AND CONTINGENCIES Investigations and Litigation On January 13, 2014, one of our subsidiaries, J. Ray McDermott de Mexico S.A. de C.V. ("JRMM"), filed separate arbitration proceedings against Atlantic Tiburon 1 Pte. Ltd. ("AT1") and Atlantic Tiburon 3 Pte. Ltd. ("AT3") in the International Court of Arbitration of the International Chamber of Commerce (the "ICC") for damages, including amounts due on unpaid invoices for rig repair work on the drilling rigs Atlantic Tiburon 1 and Atlantic Tiburon 3. On February 26, 2014, AT1 filed a separate arbitration proceeding against JRMM with the ICC generally alleging, among other things, breach of contract, fraudulent inducement, negligence and denial of access to the rigs, and AT3 filed a counterclaim against JRMM with the ICC containing similar allegations to the separate arbitration proceeding filed by AT1. In January 2015, the claims between JRMM and AT3 were resolved by agreement of the parties. In February 2015, the two AT1 arbitrations were consolidated. During the second quarter of 2015, we received AT1’s fact witness statements and expert reports providing further information relating to AT1’s damage claims. AT1’s alleged damage claims were in excess of $170 million, including claims for damages for breach of contract, conversion, usury and duress, as well as consequential damages and/or loss of revenue, as well as additional amounts. In addition, AT1 sought exemplary damages, attorneys' fees and costs. On or about October 15, 2015, the parties entered into a binding term sheet providing for settlement of all remaining claims for a total amount of approximately $16.7 million, which amount represents a cash payment and the value of certain services to be rendered by JRMM. Additionally, on November 2, 2015, Termination Orders were signed by the ICC dismissing the arbitration proceedings with prejudice. On or about August 23, 2004, a declaratory judgment action entitled Certain Underwriters at Lloyd’s London, et al. v. J. Ray McDermott, Inc. et al. Additionally, due to the nature of our business, we and our affiliates are, from time to time, involved in litigation or subject to disputes or claims related to our business activities, including, among other things: · performance or warranty-related matters under our customer and supplier contracts and other business arrangements; and · workers’ compensation claims, Jones Act claims, occupational hazard claims, including asbestos-exposure claims, premises liability claims and other claims. Based upon our prior experience, we do not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on our consolidated financial condition, results of operations or cash flows; however, because of the inherent uncertainty of litigation and other dispute resolution proceedings and, in some cases, the availability and amount of potentially applicable insurance, we can provide no assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material effect on our consolidated financial condition, results of operations or cash flows for the fiscal period in which that resolution occurs. Environmental Matters We have been identified as a potentially responsible party at various cleanup sites under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”). CERCLA and other environmental laws can impose liability for the entire cost of cleanup on any of the potentially responsible parties, regardless of fault or the lawfulness of the original conduct. Generally, however, where there are multiple responsible parties, a final allocation of costs is made based on the amount and type of wastes disposed of by each party and the number of financially viable parties, although this may not be the case with respect to any particular site. We have not been determined to be a major contributor of wastes to any of these sites. On the basis of our relative contribution of waste to each site, we expect our share of the ultimate liability for the various sites will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows in any given year. At September 30, 2015, we had total environmental reserves of $1.6 million, all of which was included in current liabilities and related to our plan to discontinue the utilization of our Morgan City fabrication facility. Inherent in the estimates of those reserves are our expectations regarding the levels of contamination and remediation costs, which may vary significantly as remediation activities progress. Accordingly, changes in estimates could result in material adjustments to our operating results, and the ultimate loss may differ materially from the amounts we have provided for in our consolidated financial statements. Contracts Containing Liquidated Damages Provisions Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a claim under those provisions. Those contracts define the conditions under which our customers may make claims against us for liquidated damages. In many cases in which we have historically had potential exposure for liquidated damages, such damages ultimately were not asserted by our customers. As of September 30, 2015, it is possible that we may incur liabilities for liquidated damages aggregating approximately $31 million, of which approximately $6 million has been recorded in our financial statements, based on our actual or projected failure to meet certain specified contractual milestone dates. We believe we will be successful in obtaining schedule extensions or other customer-agreed changes that should resolve the potential for unaccrued liquidated damages. Accordingly, we believe that no amounts for these unaccrued liquidated damages in excess of the amounts currently reflected in our financial statements are probable of being paid by us. However, we may not achieve relief on some or all of the issues involved and, as a result, could be subject to higher damage amounts. Contractual Obligations As of September 30, 2015, we had outstanding obligations related to our new vessel construction contract on the Deepwater Lay Vessel 2000 |
BASIS OF PRESENTATION AND SIG22
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations McDermott International, Inc. (“MII”), a corporation incorporated under the laws of the Republic of Panama in 1959, is an engineering, procurement, construction and installation (“EPCI”) company focused on designing and executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services, we deliver fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. Operating in approximately 20 countries across the Americas, Europe, Africa, the Middle East and Asia, our integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. We report our financial results under three reporting segments, consisting of the Americas, Europe and Africa (“AEA”) segment, the Middle East (“MEA”) segment and the Asia (“ASA”) segment. We support our activities with comprehensive project management and procurement services, while utilizing our fully integrated capabilities in both shallow water and deepwater construction. Our customers include national, major integrated and other oil and gas companies, and we operate in most major offshore oil and gas producing regions throughout the world. We execute our contracts through a variety of methods, principally fixed-price, but also including cost reimbursable, cost-plus, day-rate and unit-rate basis or some combination of those methods. In these notes to our accompanying unaudited Consolidated Financial Statements, unless the context otherwise indicates, “we,” “us” and “our” mean MII and its consolidated subsidiaries. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements are unaudited and have been prepared from our books and records in accordance with Rule 10-1 of Regulation S-X for interim financial information. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of our management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of results of operations for a full year. These Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and notes thereto included in MII’s Current Report on Form 8-K filed with the SEC on May 11, 2015. Classification During the quarter ended September 30, 2014, we committed to a plan to sell certain vessel equipment, including dynamic positioning thrusters and a deepwater pipelay winch system. These assets were classified as held for sale in subsequent quarterly and annual financial statements. In June 2015, we reclassified these assets as held for use in Property, Plant and Equipment in our Consolidated Balance Sheet. The decision to reclassify these assets was based on our determination not to proceed with a sale and to explore alternative uses for these assets within our vessel fleet instead, which we expect to be economically advantageous compared to a sale in the current environment. Our Consolidated Financial Statements classify current derivative financial instrument assets derivative financial instrument liabilities Accounts receivable–other and Accounts payable, respectively. |
Recently Issued and Adopted Accounting Guidance | Recently Issued and Adopted Accounting Guidance Debt— In April 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-03, , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The guidance in ASU 2015-03 does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of debt issuance costs will continue to be calculated using the interest method and reported as interest expense. In August 2015, the FASB issued ASU 2015-15, Interest Imputation of Interest—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Retrospective application of those ASUs are required for public entities for annual and interim periods beginning on or after December 15, 2015, and early adoption is permitted. We adopted ASU 2015-03 and ASU 2015-15 in the first quarter and the third quarter of 2015, respectively. As a result, our accompanying Consolidated Financial Statements reflect debt issuance costs related to long-term debt as components of Long-term debt. These costs were previously reported by us as Other Assets (see Note 7). Costs associated with line-of-credit arrangements continue to be reported as Other Assets. All comparable periods presented have been revised to reflect this change. Extraordinary Items— In January 2015, the FASB issued ASU 2015-01, , which eliminates the concept of extraordinary items. Under this new guidance, entities will no longer be required to separately classify, present and disclose extraordinary events and transactions. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. We adopted this ASU in the second quarter of 2015. Our adoption of this ASU did not have any impact on the accompanying Consolidated Financial Statements. Discontinued Operations— In April 2014, the FASB issued ASU 2014-08, , which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. ASU 2014-08 also requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The pronouncement is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. The application of this ASU did not have any impact on the accompanying Consolidated Financial Statements. |
Accounting Guidance Issued But Not Adopted | Accounting Guidance Issued But Not Adopted as of September 30, 2015 Consolidation— In February 2015, the FASB issued ASU 2015-02, , which amends and changes the consolidation analysis currently required under U.S. GAAP. This ASU modifies the process used to evaluate whether limited partnerships and similar entities are variable interest entities or voting interest entities; affects the analysis performed by reporting entities regarding variable interest entities, particularly those with fee arrangements and related party relationships; and provides a scope exception for certain investment funds. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. We are currently assessing the impact of these amendments on our future Consolidated Financial Statements and related disclosures. Going Concern— In August 2014, the FASB issued ASU 2014-15, . Currently, there is no guidance in effect under U.S. GAAP regarding management’s responsibility to assess whether there is substantial doubt about an entity’s ability to continue as a going concern. Under ASU 2014-15, we will be required to assess our ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about our ability to continue as a going concern, including management’s plan to alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter with early adoption permitted. We are currently assessing the impact of the adoption of ASU 2014-15 on our future Consolidated Financial Statements and related disclosures. Revenue— In May 2014, the FASB issued ASU 2014-09, . This ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, We are currently evaluating the requirements of these ASUs and have not yet determined their impact on our future Consolidated Financial Statements and related disclosures. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Contract Receivables | A summary of contract receivables is as follows: September 30, 2015 December 31, 2014 (in thousands) Contract receivables: Contracts in progress $ 108,173 $ 106,174 Completed contracts 21,128 34,698 Retainages 15,377 28,586 Unbilled 4,303 4,303 Less allowances (25,798 ) (30,391 ) Accounts receivable-trade, net $ 123,183 $ 143,370 |
Retainages on Contracts | The following is a summary of retainages on our contracts: September 30, 2015 December 31, 2014 (in thousands) Retainages expected to be collected within one year $ 15,377 $ 28,586 Retainages expected to be collected after one year 146,361 137,468 Total retainages $ 161,738 $ 166,054 |
CONTRACTS IN PROGRESS AND ADV24
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Contractors [Abstract] | |
Components of Contracts in Progress and Advance Billings on Contracts | Components of contracts in progress and advance billings on contracts are as follows: September 30, 2015 December 31, 2014 (In thousands) Costs incurred less costs of revenue recognized $ 106,242 $ 90,191 Revenues recognized less billings to customers 409,176 267,426 Contracts in Progress $ 515,418 $ 357,617 Billings to customers less revenue recognized 193,448 578,896 Costs incurred less costs of revenue recognized (96,077 ) (379,031 ) Advance Billings on Contracts $ 97,371 $ 199,865 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Amounts Incurred and Amounts Expected to be Incurred in Future by Major Type of Cost and by Segment | Incurred in the three months ended September 30, 2015 Incurred in the three months ended September 30, 2014 Incurred in the nine months ended September 30, 2015 Incurred in the nine months ended September 30, 2014 Incurred from inception to September 30, 2015 Estimate of remaining amounts to be incurred Total (In thousands) Americas Restructuring Impairments and write offs $ - $ 100 $ - $ (1,240 ) $ 12,923 $ - $ 12,923 Severance and other personnel-related costs - (155 ) 601 3,099 13,981 - 13,981 Morgan City environmental reserve - - - - 5,925 - 5,925 Morgan City yard-related expenses (27 ) 2,879 1,707 5,528 12,557 12,557 Other - - - - 158 - 158 (27 ) 2,824 2,308 7,387 45,544 - 45,544 Corporate Restructuring Severance and other personnel-related costs - 53 - 961 2,599 - 2,599 Legal and other advisor fees - 1,117 - 3,034 3,204 - 3,204 Other - 730 - 730 798 - 798 - 1,900 - 4,725 6,601 - 6,601 MPI Severance and other personnel-related costs AEA 2,360 - 6,411 - 6,411 1,694 8,105 MEA 71 - 982 - 982 - 982 ASA 387 - 3,973 - 3,973 5,200 9,173 Corporate and other - - 1,119 - 1,119 - 1,119 Asset impairment and disposal ASA - - 7,471 - 7,471 - 7,471 Legal and other advisor fees - Corporate 3,555 - 6,335 - 10,338 - 10,338 ASA 1,304 1,304 Other - ASA - - 3,527 - 3,527 5,806 9,333 Corporate and other - - - - - 700 700 6,373 - 29,818 - 33,821 14,704 48,525 Total $ 6,346 $ 4,724 $ 32,126 $ 12,112 $ 85,966 $ 14,704 $ 100,670 By segment AEA $ 2,333 $ 2,824 $ 8,719 $ 7,387 $ 51,955 $ 1,694 $ 53,649 MEA 71 - 982 - 982 - 982 ASA 387 - 14,971 - 14,971 12,310 27,281 Corporate 3,555 1,900 7,454 4,725 18,058 700 18,758 Total $ 6,346 $ 4,724 $ 32,126 $ 12,112 $ 85,966 $ 14,704 $ 100,670 |
Roll Forward of Accrued Liabilities Associated with Restructuring Activities | The following table presents a roll forward of accrued liabilities associated with our restructuring activities: December 31, 2014 Accruals Payments/ Reversals September 30, 2015 (In thousands) Morgan City environmental reserve $ 3,675 $ - $ (2,101 ) $ 1,574 Morgan City yard-related expenses and other 373 343 (453 ) 263 MPI related accruals - 6,293 (1,812 ) 4,481 Total $ 4,048 $ 6,636 $ (4,366 ) $ 6,318 |
LONG-TERM DEBT AND NOTES PAYA26
LONG-TERM DEBT AND NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Obligations | The carrying values of our long-term debt obligations are as follows: September 30, 2015 December 31, 2014 (In thousands) Long-term debt consists of: Senior Notes $ 491,537 $ 490,354 Term Loan 290,438 291,424 North Ocean 105 Construction Financing 42,213 45,888 Amortizing Notes 24,329 33,258 Capital lease obligation 2,717 2,802 Other financing - 743 851,234 864,469 Less: Amounts due within one year 27,749 27,026 Total long-term debt $ 823,485 $ 837,443 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Benefit | Net periodic benefit for our non-contributory qualified defined benefit pension plan and several of our non-qualified supplemental defined benefit pension plans (the “Domestic Plans”) and our J. Ray McDermott, S.A. Third Country National Employees Pension Plan (the “TCN Plan”) includes the following components: Domestic Plans Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Interest cost $ 5,403 $ 6,743 $ 16,210 $ 20,230 Expected return on plan assets (6,676 ) (6,875 ) (20,030 ) (20,626 ) Net periodic benefit $ (1,273 ) $ (132 ) $ (3,820 ) $ (396 ) TCN Plan Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Interest cost $ 407 $ 475 $ 1,220 $ 1,425 Expected return on plan assets (710 ) (741 ) (2,130 ) (2,221 ) Net periodic benefit $ (303 ) $ (266 ) $ (910 ) $ (796 ) |
DERIVATIVE FINANCIAL INSTRUME28
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | The following tables summarize our derivative financial instruments: Asset and Liability Derivatives September 30, 2015 December 31, 2014 (in thousands) Derivatives Designated as Hedges: Location: Other current assets $ 1,096 $ 1,173 Other assets - 16 Total asset derivatives $ 1,096 $ 1,189 Accrued Liabilities $ 42,049 $ 32,431 Other liabilities 6,277 15,670 Total liability derivatives $ 48,326 $ 48,101 |
Effects of Derivative Instruments on Financial Statements | The Effects of Derivative Instruments on our Financial Statements Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Derivatives Designated as Hedges: Amount of gain (loss) recognized in other comprehensive income (loss) $ (28,248 ) $ (39,563 ) $ (56,904 ) $ (26,764 ) Income reclassified from AOCI into income (loss): effective portion Location: Cost of operations 27,547 6,788 66,973 7,283 Gain(loss) recognized in income (loss): ineffective portion and amount excluded from effectiveness testing Location : Gain (loss) on foreign currency—net (1,329 ) (386 ) 2,535 3,842 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Available-for-Sale Securities Measured at Fair Value | The following is a summary of our available-for-sale securities measured at fair value: September 30, 2015 Total Level 1 Level 2 Level 3 (in thousands) Mutual funds (1) $ 729 $ - $ 729 $ - Total $ 729 $ - $ 729 $ - December 31, 2014 Total Level 1 Level 2 Level 3 (in thousands) Mutual funds (1) $ 2,216 $ - $ 2,216 $ - Commercial paper 1,699 - 1,699 - Total $ 3,915 $ - $ 3,915 $ - (1) Various U.S. equities and other investments managed under mutual funds |
Estimated Fair Values of Financial Instruments | The estimated fair values of certain of our financial instruments are as follows: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Balance Sheet Instruments (In thousands) Cash and cash equivalents $ 631,385 $ 631,385 $ 665,309 $ 665,309 Restricted cash and cash equivalents 135,816 135,816 187,585 187,585 Investments 729 729 3,915 3,915 Debt (851,234 ) (805,325 ) (864,469 ) (737,980 ) Forward contracts (47,230 ) (47,230 ) (46,912 ) (46,912 ) |
ACCUMULATED OTHER COMPREHENSI30
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reclassifications [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Components of Accumulated Other Comprehensive Income (Loss) Included in Stockholders' Equity | The components of AOCI included in stockholders’ equity are as follows: September 30, 2015 December 31, 2014 (In thousands) Foreign currency translation adjustments $ (31,531 ) $ (15,212 ) Net gain on investments 230 241 Net loss on derivative financial instruments (72,784 ) (82,837 ) Accumulated other comprehensive loss $ (104,085 ) $ (97,808 ) The following table presents the components of AOCI and the amounts that were reclassified during the period: Foreign currency gain (loss) Unrealized holding loss on investment Deferred gain (loss) on derivatives (1) TOTAL For the three months ended September 30, 2015 (in thousands) Balance, June 30, 2015 $ (22,198 ) $ 257 $ (72,083 ) $ (94,024 ) Other comprehensive (loss) before reclassification (9,333 ) (27 ) (28,249 ) (37,609 ) Amounts reclassified from AOCI - - 27,548 (2) 27,548 Net current period other comprehensive loss (9,333 ) (27 ) (701 ) (10,061 ) Balance, September 30, 2015 $ (31,531 ) $ 230 $ (72,784 ) $ (104,085 ) For the nine months ended September 30, 2015 Balance, December 31, 2014 $ (15,212 ) $ 241 $ (82,837 ) $ (97,808 ) Other comprehensive (loss) before reclassification (14,076 ) (11 ) (56,905 ) (70,992 ) Amounts reclassified from AOCI (2,243 ) - 66,958 (2) 64,715 Net current period other comprehensive income (loss) (16,319 ) (11 ) 10,053 (6,277 ) Balance, September 30, 2015 $ (31,531 ) $ 230 $ (72,784 ) $ (104,085 ) Foreign currency gain (loss) Unrealized holding loss on investment Deferred gain (loss) on derivatives (1) TOTAL For the three months ended September 30, 2014 (in thousands) Balance, June 30, 2014 $ (3,821 ) $ 245 $ (30,090 ) $ (33,666 ) Other comprehensive (loss) before reclassification (1,455 ) (7 ) (39,563 ) (41,025 ) Amounts reclassified from AOCI - - 6,650 (2) 6,650 Net current period other comprehensive (loss) (1,455 ) (7 ) (32,913 ) (34,375 ) Balance, September 30, 2014 $ (5,276 ) $ 238 $ (63,003 ) $ (68,041 ) For the nine months ended September 30, 2014 Balance, December 31, 2013 $ (2,562 ) $ 238 $ (45,386 ) $ (47,710 ) Other comprehensive (loss) before reclassification (2,714 ) - (26,764 ) (29,478 ) Amounts reclassified from AOCI - - 9,147 (2) 9,147 Net current period other comprehensive (loss) (2,714 ) - (17,617 ) (20,331 ) Balance, September 30, 2014 $ (5,276 ) $ 238 $ (63,003 ) $ (68,041 ) 1 Refer to Note 9 for additional details. 2 Reclassified to cost of operations and gain on foreign currency, net. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except share and per share amounts) Net income (loss) attributable to McDermott International, Inc. $ 3,666 $ (30,252 ) $ 685 $ (84,169 ) Weighted average common shares (basic) 238,594,178 237,429,394 238,128,962 237,262,044 Effect of dilutive securities: Tangible equity units 40,896,300 - 40,896,300 - Stock options, restricted stock and restricted stock units 1,306,677 - - - Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) 280,797,155 237,429,394 279,025,262 237,262,044 Basic loss per share Net income (loss) attributable to McDermott International, Inc. $ 0.02 $ (0.13 ) $ - $ (0.35 ) Diluted loss per share: Adjusted net income (loss) attributable to McDermott International, Inc. $ 0.01 $ (0.13 ) $ - $ (0.35 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Information about Operations in Different Segments | Summarized financial information is shown in the following tables: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Revenues (1) AEA $ 96,371 $ 117,509 $ 344,385 $ 425,060 MEA 318,346 91,659 892,367 588,195 ASA 391,140 205,427 1,166,105 481,234 Total revenues $ 805,857 $ 414,595 $ 2,402,857 $ 1,494,489 Operating income (loss) (2) AEA $ (19,784 ) $ (11,853 ) $ (125 ) $ (41,855 ) MEA 38,981 (17,982 ) 74,952 (1,049 ) ASA 13,886 21,022 12,273 30,232 Corporate (3,623 ) (1,898 ) (9,443 ) (4,723 ) Total operating income (loss) $ 29,460 $ (10,711 ) $ 77,657 $ (17,395 ) Capital expenditures (3) AEA $ 3,286 $ 7,249 $ 6,715 $ 47,602 MEA 2,735 47,354 17,677 76,739 ASA 11,648 5,316 41,141 83,613 Corporate and Other 464 1,650 585 8,572 Total capital expenditures $ 18,133 $ 61,569 $ 66,118 $ 216,526 Depreciation and amortization: AEA $ 9,832 $ 7,897 $ 33,119 $ 23,284 MEA 8,393 7,235 23,150 24,732 ASA 4,191 5,061 11,969 15,048 Corporate and Other 2,195 2,215 7,744 5,591 Total depreciation and amortization $ 24,611 $ 22,408 $ 75,982 $ 68,655 Drydock amortization: AEA $ 3,133 $ 3,162 $ 9,377 $ 8,707 MEA 443 501 1,606 1,398 ASA 676 1,938 2,927 5,462 Total drydock amortization $ 4,252 $ 5,601 $ 13,910 $ 15,567 (1) Intersegment transactions included in revenues were not significant for either of the periods presented. (2) DB101 (3) Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and nine months ended September 30, 2015 included $1.2 million and $10.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three months ended September 30, 2014 exclude $9.5 million in accrued liabilities related to capital expenditures and for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. |
Information about Segment Assets by Country | September 30, 2015 December 31, 2014 (In thousands) Segment assets: AEA $ 611,268 $ 976,179 MEA 1,005,852 990,671 ASA 1,004,896 601,394 Corporate and Other 762,193 848,635 $ 3,384,209 $ 3,416,879 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2015CountrySegment | Dec. 31, 2014USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of countries | Country | 20 | |
Number of reporting segments | Segment | 3 | |
Asset derivatives fair value | $ 1.2 | |
Liability derivatives fair value | $ 32.4 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)ProjectContract | Sep. 30, 2014USD ($)ProjectContract | Sep. 30, 2015USD ($)ProjectContract | Sep. 30, 2014USD ($)ProjectContract | ||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Unapproved change orders | $ 146,100,000 | $ 352,300,000 | $ 146,100,000 | $ 352,300,000 | |
Revenues | [1] | 805,857,000 | 414,595,000 | 2,402,857,000 | 1,494,489,000 |
Cost of operations | $ 720,961,000 | $ 370,271,000 | $ 2,121,942,000 | $ 1,394,062,000 | |
Number of projects accounted under deferred profit recognition policy | Project | 0 | 0 | 0 | 0 | |
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Brazil [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Charter contract term | 5 years | ||||
MEA [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Revenues | [1] | $ 318,346,000 | $ 91,659,000 | $ 892,367,000 | $ 588,195,000 |
AEA [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Revenues | [1] | 96,371,000 | 117,509,000 | 344,385,000 | 425,060,000 |
Claims Revenue [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of operations | 0 | 0 | 0 | 0 | |
Claims Revenue [Member] | MEA [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Revenues | 9,800,000 | 6,500,000 | |||
Cost of operations | 9,800,000 | 6,500,000 | |||
Backlog [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Unapproved change orders | $ 22,500,000 | $ 168,900,000 | 22,500,000 | $ 168,900,000 | |
Backlog [Member] | MEA [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Loss on contracts | $ 168,000,000 | ||||
Project completion year | 2,017 | ||||
Backlog [Member] | AEA [Member] | Mexico [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Loss on contracts | $ 86,000,000 | ||||
Backlog Related to Active Projects [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Loss on contracts | 317,000,000 | ||||
Backlog Associated with Charter of Agile [Member] | AEA [Member] | Brazil [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Loss on contracts | $ 61,000,000 | ||||
Project completion year | 2,017 | ||||
Active Projects [Member] | |||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||
Number of projects accounted under deferred profit recognition policy | Project | 3 | ||||
[1] | Intersegment transactions included in revenues were not significant for either of the periods presented. |
Use of Estimates - Additional I
Use of Estimates - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)Project | Sep. 30, 2015USD ($)Project | Sep. 30, 2014USD ($) | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | $ 8 | $ 21 | ||
AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 11 | $ 1.5 | 1 | $ (41.5) |
Number of projects | Project | 5 | |||
MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 6 | $ 5.4 | $ 16 | 10.7 |
Number of projects | Project | 3 | |||
MEA [Member] | Project One [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 6 | |||
MEA [Member] | Project Two | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 3 | |||
ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 3 | $ 20.2 | $ 6 | 10.3 |
Number of projects | Project | 3 | |||
Marine Campaign Execution Plan And Legal Charges | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 6 | |||
PB Litoral project [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 13 | $ 10.9 | 13 | 66.3 |
U.A.E. project [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 4 | 9 | ||
Multiple projects [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 4.8 | 1 | ||
Multiple projects [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | (1) | |||
Partial offset on estimated costs on project | 2 | |||
Multiple projects [Member] | ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 5 | 9.5 | 10 | |
Brunei Project [Member] | ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | $ 8 | 10.8 | 8 | 11.8 |
Agile Charter [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 4 | |||
Papa Terra Project | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 3 | (37.4) | ||
North Ocean one hundred and five demobilization [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 6 | |||
Intermac cable lay project | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 11 | |||
Cable Lay Scope [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 5 | |||
U.A.E. project two [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 5 | |||
Marine Hook-up Campaign Savings Karan 45 [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 4 | |||
KJO Hout Project [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 7 | |||
EPCI project two Saudi Arabia [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 6.7 | (5) | ||
Gorgon MRU Fabrication Project [Member] | ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | $ 4 | |||
Jack & St. Malo [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | (12.4) | 10.1 | ||
Morgan City Fabrication Project [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 4.8 | 7.8 | ||
EPCI project one Saudi Arabia [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 7.9 | |||
EPCI projects Saudi Arabia [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 8.6 | 15.2 | ||
EPCI projects Saudi Arabia [Member] | MEA [Member] | Project Two | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 42.4 | |||
Caspian Pipelay project [Member] | MEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | $ 17.8 | 46.9 | ||
Marine Installation Project [Member] | AEA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 5.2 | |||
Siakap [Member] | ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | 53.5 | |||
Siakap project [Member] | ASA [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Effect of changes in estimated project cost on operating results | $ 31.5 |
Accounts Receivable - Contract
Accounts Receivable - Contract Receivables (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Notes And Loans Receivable [Line Items] | ||
Retainages | $ 15,377 | $ 28,586 |
Accounts receivable-trade, net | 123,183 | 143,370 |
Contract receivables [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unbilled | 4,303 | 4,303 |
Less allowances | (25,798) | (30,391) |
Accounts receivable-trade, net | 123,183 | 143,370 |
Contract receivables [Member] | Contracts in progress [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Contracts receivable | 108,173 | 106,174 |
Contract receivables [Member] | Completed contracts [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Contracts receivable | $ 21,128 | $ 34,698 |
Accounts Receivable - Retainage
Accounts Receivable - Retainages on Contracts (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Retainages expected to be collected within one year | $ 15,377 | $ 28,586 |
Retainages expected to be collected after one year | 146,361 | 137,468 |
Total retainages | $ 161,738 | $ 166,054 |
Contracts in Progress and Adv38
Contracts in Progress and Advance Billings on Contracts - Components of Contracts in Progress and Advance Billings on Contracts (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Contractors [Abstract] | ||
Costs incurred less costs of revenue recognized | $ 106,242 | $ 90,191 |
Revenues recognized less billings to customers | 409,176 | 267,426 |
Contracts in Progress | 515,418 | 357,617 |
Billings to customers less revenue recognized | 193,448 | 578,896 |
Costs incurred less costs of revenue recognized | (96,077) | (379,031) |
Advance Billings on Contracts | $ 97,371 | $ 199,865 |
Restructuring - Amounts Incurre
Restructuring - Amounts Incurred and Amounts Expected to be Incurred in Future by Major Type of Cost and by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | $ 6,346 | $ 4,724 | $ 32,126 | $ 12,112 | |
Incurred from inception to September 30, 2015 | 85,966 | 85,966 | |||
Estimate of remaining amounts to be incurred | 14,704 | 14,704 | |||
Total | 100,670 | 100,670 | |||
Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | (27) | 2,824 | 2,308 | 7,387 | |
Incurred from inception to September 30, 2015 | 45,544 | 45,544 | |||
Total | 45,544 | 45,544 | |||
Corporate Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 1,900 | 4,725 | |||
Incurred from inception to September 30, 2015 | 6,601 | 6,601 | |||
Total | 6,601 | 6,601 | |||
MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 6,373 | 29,818 | |||
Incurred from inception to September 30, 2015 | 33,821 | 33,821 | |||
Estimate of remaining amounts to be incurred | 14,704 | 14,704 | |||
Total | 48,525 | 48,525 | |||
Impairments and write offs [Member] | Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 100 | (1,240) | |||
Incurred from inception to September 30, 2015 | 12,923 | 12,923 | |||
Total | 12,923 | 12,923 | |||
Severance and other personnel-related costs [Member] | Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | (155) | 601 | 3,099 | ||
Incurred from inception to September 30, 2015 | 13,981 | 13,981 | |||
Total | 13,981 | 13,981 | |||
Severance and other personnel-related costs [Member] | Corporate Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 53 | 961 | |||
Incurred from inception to September 30, 2015 | 2,599 | 2,599 | |||
Total | 2,599 | 2,599 | |||
Morgan City yard-related expenses [Member] | Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | (27) | 2,879 | 1,707 | 5,528 | |
Incurred from inception to September 30, 2015 | 12,557 | 12,557 | |||
Total | 12,557 | 12,557 | |||
Other [Member] | Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred from inception to September 30, 2015 | 158 | 158 | |||
Total | 158 | 158 | |||
Other [Member] | Corporate Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 730 | 730 | |||
Incurred from inception to September 30, 2015 | 798 | 798 | |||
Total | 798 | 798 | |||
Legal and other advisor fees [Member] | Corporate Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 1,117 | 3,034 | |||
Incurred from inception to September 30, 2015 | 3,204 | 3,204 | |||
Total | 3,204 | 3,204 | |||
Legal and other advisor fees [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred from inception to September 30, 2015 | $ 4,000 | ||||
Morgan City environmental reserve [Member] | Americas Restructuring [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred from inception to September 30, 2015 | 5,925 | 5,925 | |||
Total | 5,925 | 5,925 | |||
AEA [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 2,333 | 2,824 | 8,719 | 7,387 | |
Incurred from inception to September 30, 2015 | 51,955 | 51,955 | |||
Estimate of remaining amounts to be incurred | 1,694 | 1,694 | |||
Total | 53,649 | 53,649 | |||
AEA [Member] | Severance and other personnel-related costs [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 2,360 | 6,411 | |||
Incurred from inception to September 30, 2015 | 6,411 | 6,411 | |||
Estimate of remaining amounts to be incurred | 1,694 | 1,694 | |||
Total | 8,105 | 8,105 | |||
MEA [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 71 | 982 | |||
Incurred from inception to September 30, 2015 | 982 | 982 | |||
Total | 982 | 982 | |||
MEA [Member] | Severance and other personnel-related costs [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 71 | 982 | |||
Incurred from inception to September 30, 2015 | 982 | 982 | |||
Total | 982 | 982 | |||
ASA [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 387 | 14,971 | |||
Incurred from inception to September 30, 2015 | 14,971 | 14,971 | |||
Estimate of remaining amounts to be incurred | 12,310 | 12,310 | |||
Total | 27,281 | 27,281 | |||
ASA [Member] | Severance and other personnel-related costs [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 387 | 3,973 | |||
Incurred from inception to September 30, 2015 | 3,973 | 3,973 | |||
Estimate of remaining amounts to be incurred | 5,200 | 5,200 | |||
Total | 9,173 | 9,173 | |||
ASA [Member] | Other [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 3,527 | ||||
Incurred from inception to September 30, 2015 | 3,527 | 3,527 | |||
Estimate of remaining amounts to be incurred | 5,806 | 5,806 | |||
Total | 9,333 | 9,333 | |||
ASA [Member] | Legal and other advisor fees [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Estimate of remaining amounts to be incurred | 1,304 | 1,304 | |||
Total | 1,304 | 1,304 | |||
ASA [Member] | Asset impairment [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 7,471 | ||||
Incurred from inception to September 30, 2015 | 7,471 | 7,471 | |||
Total | 7,471 | 7,471 | |||
Corporate and Other [Member] | Severance and other personnel-related costs [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 1,119 | ||||
Incurred from inception to September 30, 2015 | 1,119 | 1,119 | |||
Total | 1,119 | 1,119 | |||
Corporate and Other [Member] | Other [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Estimate of remaining amounts to be incurred | 700 | 700 | |||
Total | 700 | 700 | |||
Corporate [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 3,555 | $ 1,900 | 7,454 | $ 4,725 | |
Incurred from inception to September 30, 2015 | 18,058 | 18,058 | |||
Estimate of remaining amounts to be incurred | 700 | 700 | |||
Total | 18,758 | 18,758 | |||
Corporate [Member] | Legal and other advisor fees [Member] | MPI [Member] | |||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Incurred for the period | 3,555 | 6,335 | |||
Incurred from inception to September 30, 2015 | 10,338 | 10,338 | |||
Total | $ 10,338 | $ 10,338 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to September 30, 2015 | $ 85,966 | |
MPI [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to September 30, 2015 | $ 33,821 | |
MPI [Member] | Legal and other advisor fees [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to September 30, 2015 | $ 4,000 |
Restructuring - Roll Forward of
Restructuring - Roll Forward of Accrued Liabilities Associated with Restructuring Activities (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Reserve [Line Items] | |
Beginning balance | $ 4,048 |
Accruals | 6,636 |
Payments/ Reversals | (4,366) |
Ending balance | 6,318 |
Morgan City environmental reserve [Member] | |
Restructuring Reserve [Line Items] | |
Beginning balance | 3,675 |
Payments/ Reversals | (2,101) |
Ending balance | 1,574 |
Morgan City yard-related expenses and Other [Member] | |
Restructuring Reserve [Line Items] | |
Beginning balance | 373 |
Accruals | 343 |
Payments/ Reversals | (453) |
Ending balance | 263 |
MPI related accruals [Member] | |
Restructuring Reserve [Line Items] | |
Accruals | 6,293 |
Payments/ Reversals | (1,812) |
Ending balance | $ 4,481 |
Long-Term Debt and Notes Paya42
Long-Term Debt and Notes Payable - Summary of Long-Term Debt Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Long-term debt consists of: | ||
Long-term borrowing | $ 851,234 | $ 864,469 |
Less: Amounts due within one year | 27,749 | 27,026 |
Long-Term Debt | 823,485 | 837,443 |
Senior Notes [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | 491,537 | 490,354 |
Term Loan [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | 290,438 | 291,424 |
Amortizing Notes [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | 24,329 | 33,258 |
Capital lease obligation [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | 2,717 | 2,802 |
Other financing [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | 743 | |
North Ocean 105 [Member] | ||
Long-term debt consists of: | ||
Long-term borrowing | $ 42,213 | $ 45,888 |
Long-Term Debt and Notes Paya43
Long-Term Debt and Notes Payable - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | Oct. 31, 2015 | |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 21,800,000 | $ 27,100,000 | |
Mexico [Member] | |||
Debt Instrument [Line Items] | |||
Bonds issued related to JRMSA general agreement of indemnity | 49,400,000 | 52,500,000 | |
Letter of Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit, first lien | 400,000,000 | 400,000,000 | |
Line of Credit Facility maximum amount outstanding | 320,400,000 | 195,800,000 | |
Letter of credit supported by Cash collateral | 115,700,000 | 88,800,000 | |
Letter of Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit, first lien | $ 520,000,000 | ||
Reimbursement Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Bank guarantees issued | 89,200,000 | 56,200,000 | |
Financial Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility maximum amount outstanding | 0 | 0 | |
Letter of credit supported by Cash collateral | $ 46,500,000 | $ 19,700,000 |
Pension Plans - Net Periodic Be
Pension Plans - Net Periodic Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Domestic Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 5,403 | $ 6,743 | $ 16,210 | $ 20,230 |
Expected return on plan assets | (6,676) | (6,875) | (20,030) | (20,626) |
Net periodic benefit | (1,273) | (132) | (3,820) | (396) |
TCN Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 407 | 475 | 1,220 | 1,425 |
Expected return on plan assets | (710) | (741) | (2,130) | (2,221) |
Net periodic benefit | $ (303) | $ (266) | $ (910) | $ (796) |
Derivative Financial Instrume45
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Net gain (loss) on derivative financial instruments | $ (72,784,000) | $ (82,837,000) |
Net deferred losses expected to be reclassified from AOCI over next 12 months | $ (55,600,000) | |
Derivative contracts, maturity date | Dec. 31, 2017 | |
Fair value of derivative contracts | $ 47,230,000 | |
EPCI projects [Member] | ||
Derivative [Line Items] | ||
Notional value of outstanding derivative contracts | 447,000,000 | |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Notional value of outstanding derivative contracts | $ 673,100,000 |
Derivative Financial Instrume46
Derivative Financial Instruments - Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | $ 1,200 | |
Liability derivatives fair value | 32,400 | |
Derivatives Designated as Hedges [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | $ 1,096 | 1,189 |
Liability derivatives fair value | 48,326 | 48,101 |
Derivatives Designated as Hedges [Member] | Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability derivatives fair value | 42,049 | 32,431 |
Derivatives Designated as Hedges [Member] | Other current assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | 1,096 | 1,173 |
Derivatives Designated as Hedges [Member] | Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | 16 | |
Derivatives Designated as Hedges [Member] | Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability derivatives fair value | $ 6,277 | $ 15,670 |
Derivative Financial Instrume47
Derivative Financial Instruments - Effects of Derivative Instruments on Financial Statements (Detail) - Derivatives Designated as Hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ (28,248) | $ (39,563) | $ (56,904) | $ (26,764) |
Cost of operations [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Income (loss) reclassified from AOCI into income: effective portion | 27,547 | 6,788 | 66,973 | 7,283 |
Gain (loss) on foreign currency-net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain(loss) recognized in income (loss): ineffective portion and amount excluded from effectiveness testing | $ (1,329) | $ (386) | $ 2,535 | $ 3,842 |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | $ 729 | $ 3,915 |
Mutual funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | 729 | 2,216 |
Commercial paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | 1,699 | |
Level 2 [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | 729 | 3,915 |
Level 2 [Member] | Mutual funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | $ 729 | 2,216 |
Level 2 [Member] | Commercial paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities | $ 1,699 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments | $ 729 | $ 3,915 |
Forward contracts | (47,230) | |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 631,385 | 665,309 |
Restricted cash and cash equivalents | 135,816 | 187,585 |
Investments | 729 | 3,915 |
Debt | (851,234) | (864,469) |
Forward contracts | (47,230) | (46,912) |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 631,385 | 665,309 |
Restricted cash and cash equivalents | 135,816 | 187,585 |
Investments | 729 | 3,915 |
Debt | (805,325) | (737,980) |
Forward contracts | $ (47,230) | $ (46,912) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||||
Loss (gain) on disposal of assets | $ (100) | $ (4,818) | $ 1,443 | $ (46,362) | |||
ASA [Member] | |||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||||
Property plant and equipment, fair value | $ 14,000 | ||||||
Non-cash impairment charges | $ 4,000 | $ 6,600 | $ 37,800 | ||||
Loss (gain) on disposal of assets | $ 3,000 | ||||||
Property plant and equipment improvement | $ 10,700 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ||||||
Foreign currency translation adjustments | $ (31,531) | $ (15,212) | ||||
Net gain on investments | 230 | 241 | ||||
Net loss on derivative financial instruments | (72,784) | (82,837) | ||||
Accumulated other comprehensive loss | $ (104,085) | $ (94,024) | $ (97,808) | $ (68,041) | $ (33,666) | $ (47,710) |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) Reclassified (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | $ (94,024) | $ (33,666) | $ (97,808) | $ (47,710) | |
Other comprehensive (loss) before reclassification | (37,609) | (41,025) | (70,992) | (29,478) | |
Amounts reclassified from AOCI | 27,548 | 6,650 | 64,715 | 9,147 | |
Net current period other comprehensive loss | (10,061) | (34,375) | (6,277) | (20,331) | |
Ending Balance | (104,085) | (68,041) | (104,085) | (68,041) | |
Foreign currency gain (loss) [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | (22,198) | (3,821) | (15,212) | (2,562) | |
Other comprehensive (loss) before reclassification | (9,333) | (1,455) | (14,076) | (2,714) | |
Amounts reclassified from AOCI | (2,243) | ||||
Net current period other comprehensive loss | (9,333) | (1,455) | (16,319) | (2,714) | |
Ending Balance | (31,531) | (5,276) | (31,531) | (5,276) | |
Unrealized holding loss on investment [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | 257 | 245 | 241 | 238 | |
Other comprehensive (loss) before reclassification | (27) | (7) | (11) | ||
Net current period other comprehensive loss | (27) | (7) | (11) | ||
Ending Balance | 230 | 238 | 230 | 238 | |
Deferred gain (loss) on derivatives [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning Balance | [1] | (72,083) | (30,090) | (82,837) | (45,386) |
Other comprehensive (loss) before reclassification | [1] | (28,249) | (39,563) | (56,905) | (26,764) |
Amounts reclassified from AOCI | [1],[2] | 27,548 | 6,650 | 66,958 | 9,147 |
Net current period other comprehensive loss | [1] | (701) | (32,913) | 10,053 | (17,617) |
Ending Balance | [1] | $ (72,784) | $ (63,003) | $ (72,784) | $ (63,003) |
[1] | Refer to Note 9 for additional details. | ||||
[2] | Reclassified to cost of operations and gain on foreign currency, net. |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to McDermott International, Inc. | $ 3,666 | $ (30,252) | $ 685 | $ (84,169) |
Weighted average common shares (basic) | 238,594,178 | 237,429,394 | 238,128,962 | 237,262,044 |
Effect of dilutive securities: | ||||
Tangible equity units | 40,896,300 | 40,896,300 | ||
Stock options, restricted stock and restricted stock units | 1,306,677 | |||
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) | 280,797,155 | 237,429,394 | 279,025,262 | 237,262,044 |
Basic loss per share | ||||
Net income (loss) attributable to McDermott International, Inc. | $ 0.02 | $ (0.13) | $ (0.35) | |
Diluted loss per share: | ||||
Adjusted net income (loss) attributable to McDermott International, Inc. | $ 0.01 | $ (0.13) | $ (0.35) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from earnings per share computation, shares | 2.9 | 2.9 | 11.1 | 3 |
Antidilutive securities excluded from diluted weighted average shares computation, shares | 40.9 | 40.9 | 40.9 | 27.3 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Segment Reporting - Information
Segment Reporting - Information about Operations in Different Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 805,857 | $ 414,595 | $ 2,402,857 | $ 1,494,489 |
Operating income (loss) | [2] | 29,460 | (10,711) | 77,657 | (17,395) |
Capital expenditures | [3] | 18,133 | 61,569 | 66,118 | 216,526 |
Depreciation and amortization | 24,611 | 22,408 | 75,982 | 68,655 | |
Drydock amortization | 4,252 | 5,601 | 13,910 | 15,567 | |
AEA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 96,371 | 117,509 | 344,385 | 425,060 |
Operating income (loss) | [2] | (19,784) | (11,853) | (125) | (41,855) |
Capital expenditures | [3] | 3,286 | 7,249 | 6,715 | 47,602 |
Depreciation and amortization | 9,832 | 7,897 | 33,119 | 23,284 | |
Drydock amortization | 3,133 | 3,162 | 9,377 | 8,707 | |
MEA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 318,346 | 91,659 | 892,367 | 588,195 |
Operating income (loss) | [2] | 38,981 | (17,982) | 74,952 | (1,049) |
Capital expenditures | [3] | 2,735 | 47,354 | 17,677 | 76,739 |
Depreciation and amortization | 8,393 | 7,235 | 23,150 | 24,732 | |
Drydock amortization | 443 | 501 | 1,606 | 1,398 | |
ASA [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 391,140 | 205,427 | 1,166,105 | 481,234 |
Operating income (loss) | [2] | 13,886 | 21,022 | 12,273 | 30,232 |
Capital expenditures | [3] | 11,648 | 5,316 | 41,141 | 83,613 |
Depreciation and amortization | 4,191 | 5,061 | 11,969 | 15,048 | |
Drydock amortization | 676 | 1,938 | 2,927 | 5,462 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | [2] | (3,623) | (1,898) | (9,443) | (4,723) |
Capital expenditures | [3] | 464 | 1,650 | 585 | 8,572 |
Depreciation and amortization | $ 2,195 | $ 2,215 | $ 7,744 | $ 5,591 | |
[1] | Intersegment transactions included in revenues were not significant for either of the periods presented. | ||||
[2] | Operating results for the ASA segment included a $4 million impairment charge for the DB101 and $3 million of loss on disposal of this asset in the first and second quarters of 2015, respectively. | ||||
[3] | Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and nine months ended September 30, 2015 included $1.2 million and $10.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three months ended September 30, 2014 exclude $9.5 million in accrued liabilities related to capital expenditures and for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. |
Segment Reporting - Informati57
Segment Reporting - Information about Operations in Different Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||
Loss (gain) on disposal of assets | $ (100) | $ (4,818) | $ 1,443 | $ (46,362) | ||||
Capital expenditures | [1] | 18,133 | 61,569 | 66,118 | 216,526 | |||
Accrued Capital Expenditures of 2014 [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Capital expenditures | 1,200 | 10,200 | ||||||
Accrued Capital Expenditures of 2013 [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Capital expenditures | 9,500 | 18,600 | ||||||
ASA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Non-cash impairment charges | $ 4,000 | $ 6,600 | $ 37,800 | |||||
Loss (gain) on disposal of assets | $ 3,000 | |||||||
Capital expenditures | [1] | $ 11,648 | $ 5,316 | $ 41,141 | $ 83,613 | |||
[1] | Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and nine months ended September 30, 2015 included $1.2 million and $10.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three months ended September 30, 2014 exclude $9.5 million in accrued liabilities related to capital expenditures and for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. |
Segment Reporting - Informati58
Segment Reporting - Information about Segment Assets by Country (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,384,209 | $ 3,416,879 |
AEA [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 611,268 | 976,179 |
MEA [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 1,005,852 | 990,671 |
ASA [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 1,004,896 | 601,394 |
Corporate and Other [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 762,193 | $ 848,635 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Oct. 15, 2015USD ($) | Aug. 23, 2004DefendantLegalMatter | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Number of defendants | Defendant | 2 | |||
Number of underlying matters in a cross-claim requesting declaration of non-coverage | LegalMatter | 20 | |||
Environmental reserves, Noncurrent | $ 1.6 | |||
Aggregate possible liquidated damage due to failure to meet specified contractual milestone dates, offshore oil and gas construction segment | 31 | |||
Liquidated damage contingencies, accrued | 6 | |||
Outstanding obligation in 2015 | 22.3 | |||
Outstanding obligation in 2016 | 180.2 | |||
Outstanding obligation | $ 202.5 | |||
AT1 [Member] | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Alleged damage claims amount | $ 170 | |||
Subsequent Event [Member] | AT1 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Claims settlement amount | $ 16.7 |