Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 240,357,706 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Income Statement [Abstract] | |||
Revenues | [1] | $ 729,032 | $ 550,463 |
Costs and Expenses: | |||
Cost of operations | 616,033 | 475,459 | |
Selling, general and administrative expenses | 38,328 | 51,676 | |
Impairment loss | 32,311 | ||
Gains on asset disposals | (367) | ||
Restructuring expenses | 6,367 | 10,389 | |
Total costs and expenses | 693,039 | 537,157 | |
Operating income | [2] | 35,993 | 13,306 |
Other income (expense): | |||
Interest expense, net | (11,238) | (12,179) | |
Loss on foreign currency, net | (3,183) | (1,468) | |
Other expense, net | (208) | (97) | |
Total other expense | (14,629) | (13,744) | |
Income (loss) before provision for income taxes | 21,364 | (438) | |
Provision for income taxes | 19,330 | 4,869 | |
Income (loss) before loss from investments in unconsolidated affiliates | 2,034 | (5,307) | |
Loss from investments in unconsolidated affiliates | (4,478) | (6,741) | |
Net loss | (2,444) | (12,048) | |
Less: Net income (loss) attributable to noncontrolling interest | (272) | 2,459 | |
Net loss attributable to McDermott International, Inc. | $ (2,172) | $ (14,507) | |
Net loss attributable to McDermott International, Inc. | |||
Basic: | $ (0.01) | $ (0.06) | |
Diluted: | $ (0.01) | $ (0.06) | |
Shares used in the computation of loss per share: | |||
Basic: | 239,137,912 | 237,504,719 | |
Diluted: | 239,137,912 | 237,504,719 | |
[1] | Intersegment transactions included in revenues were not significant for either of the periods presented. | ||
[2] | The AEA segment’s operating loss for the three months ended March 31, 2016 includes an impairment charge of $32 million related to the Agile vessel. The ASA segment’s operating loss for the three months ended March 31, 2015 includes an impairment charge of $4 million related to the DB101. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (2,444) | $ (12,048) |
Other comprehensive income (loss), net of tax: | ||
Unrealized gain on investments | 5 | 12 |
Gain (loss) on derivatives | 30,791 | (16,885) |
Foreign currency translation | (3,343) | (2,042) |
Other comprehensive income (loss), net of tax | 27,453 | (18,915) |
Total comprehensive income (loss) | 25,009 | (30,963) |
Less: Comprehensive income (loss) attributable to non-controlling interests | (285) | 2,426 |
Comprehensive income (loss) attributable to McDermott International, Inc. | $ 25,294 | $ (33,389) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 696,103 | $ 664,844 |
Restricted cash and cash equivalents | 101,726 | 116,801 |
Accounts receivable—trade, net | 271,713 | 208,474 |
Accounts receivable—other | 55,350 | 66,689 |
Contracts in progress | 358,501 | 435,829 |
Other current assets | 46,716 | 34,641 |
Total current assets | 1,530,109 | 1,527,278 |
Property, plant and equipment | 2,432,169 | 2,467,352 |
Less accumulated depreciation | (838,050) | (856,493) |
Net property, plant and equipment | 1,594,119 | 1,610,859 |
Accounts receivable – long-term retainages | 160,515 | 155,061 |
Investments in unconsolidated affiliates | 26,844 | 26,551 |
Deferred income taxes | 13,657 | 18,822 |
Other assets | 46,314 | 48,505 |
Total assets | 3,371,558 | 3,387,076 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 25,298 | 24,882 |
Accounts payable | 298,297 | 279,821 |
Accrued liabilities | 299,277 | 330,943 |
Advance billings on contracts | 138,272 | 164,773 |
Income taxes payable | 21,541 | 23,787 |
Total current liabilities | 782,685 | 824,206 |
Long-term debt | 815,641 | 819,001 |
Self-insurance | 19,363 | 18,653 |
Pension liability | 24,025 | 24,066 |
Non-current income taxes | 55,121 | 52,559 |
Other liabilities | $ 104,735 | $ 101,870 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 248,374,567 and 246,841,128 shares, respectively | $ 248,374 | $ 246,841 |
Capital in excess of par value (including prepaid common stock purchase contracts) | 1,685,061 | 1,687,059 |
Accumulated deficit | (263,056) | (260,884) |
Treasury stock, at cost: 8,020,427 and 7,824,204 shares, respectively | (93,539) | (92,262) |
Accumulated other comprehensive loss | (66,489) | (93,955) |
Stockholders' Equity—McDermott International, Inc. | 1,510,351 | 1,486,799 |
Noncontrolling interest | 59,637 | 59,922 |
Total Equity | 1,569,988 | 1,546,721 |
Total Liabilities and Equity | $ 3,371,558 | $ 3,387,076 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 248,374,567 | 246,841,128 |
Treasury stock, shares | 8,020,427 | 7,824,204 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net loss | $ (2,444) | $ (12,048) | |
Non-cash items included in net loss: | |||
Depreciation and amortization | 20,602 | 25,327 | |
Impairment loss | 32,311 | ||
Drydock amortization | 3,940 | 5,272 | |
Stock-based compensation charges | 1,484 | 4,278 | |
Loss from investments in unconsolidated affiliates | 4,478 | 6,741 | |
Restructuring expense | 4,169 | ||
Deferred income taxes | 5,164 | (5,341) | |
Other non-cash items | (2,698) | (1,839) | |
Changes in assets and liabilities that provided (used) cash: | |||
Accounts receivable | (61,248) | (69,214) | |
Contracts in progress net of advance billings on contracts | 50,839 | (61,021) | |
Accounts payable | 16,762 | 110,785 | |
Accrued and other current liabilities | (16,112) | (5,723) | |
Pension liability | (375) | (555) | |
Other assets and liabilities | 6,577 | (19,370) | |
Total cash provided by (used in) operating activities | 59,280 | (18,539) | |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | [1] | (31,900) | (23,972) |
(Increase) decrease in restricted cash and cash equivalents | 15,075 | (12,179) | |
Sales and maturities of available-for-sale securities | 1,775 | ||
Investments in unconsolidated affiliates | (4,105) | (4,696) | |
Other investing activities | 76 | ||
Total cash used in investing activities | (20,930) | (38,996) | |
Cash flows from financing activities: | |||
Repayment of debt | (4,752) | (4,706) | |
Repurchase of common stock | (2,200) | (1,003) | |
Other | (320) | ||
Total cash used in financing activities | (6,952) | (6,029) | |
Effects of exchange rate changes on cash and cash equivalents | (139) | (1,109) | |
Net increase (decrease) in cash and cash equivalents | 31,259 | (64,673) | |
Cash and cash equivalents at beginning of period | 664,844 | 665,309 | |
Cash and cash equivalents at end of period | $ 696,103 | $ 600,636 | |
[1] | Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended March 31, 2016 exclude $2 million in accrued liabilities related to capital expenditures as of December 31, 2015. Capital expenditures for the three months ended March 31, 2015 include $3 million of cash payments for accrued capital expenditures outstanding as of December 31, 2014. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock Par Value [Member] | Capital in Excess of Par Value [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Stockholders' Equity [Member] | Noncontrolling Interest ("NCI") [Member] |
Beginning Balance at Dec. 31, 2015 | $ 1,546,721 | $ 246,841 | $ 1,687,059 | $ (260,884) | $ (93,955) | $ (92,262) | $ 1,486,799 | $ 59,922 |
Net loss | (2,444) | (2,172) | (2,172) | (272) | ||||
Other comprehensive income (loss) net of tax | 27,453 | 27,466 | 27,466 | (13) | ||||
Common stock issued | 1,907 | (1,907) | ||||||
Stock-based compensation charges | 458 | 458 | 458 | |||||
Purchase of treasury shares | (2,200) | (2,200) | (2,200) | |||||
Retirement of common stock | (374) | (549) | 923 | |||||
Ending Balance at Mar. 31, 2016 | $ 1,569,988 | $ 248,374 | $ 1,685,061 | $ (263,056) | $ (66,489) | $ (93,539) | $ 1,510,351 | $ 59,637 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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. (“MDR”), a corporation incorporated under the laws of the Republic of Panama in 1959, is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”) and module fabrication services for upstream field developments worldwide. We deliver fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects. Operating in approximately 20 countries across Americas, Europe, Africa, the Middle East, Asia and Australia, our integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. 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 Consolidated Financial Statements, unless the context otherwise indicates, “we,” “us” and “our” mean MDR 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 MDR’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 22, 2016. Classification Certain prior year amounts have been reclassified for consistency with the current year presentation. Our Consolidated Financial Statements previously reported Loss from investment in unconsolidated affiliates as components of operating income. In the first quarter of 2016, we concluded that classification of loss from investments in unconsolidated affiliates after provision for income tax better reflected how the operations of our unconsolidated affiliates relate to our business as a whole. Recently Issued and Adopted Accounting Guidance Income Tax— In November 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-17, . Under this ASU an entity shall classify deferred tax assets and liabilities as noncurrent. We adopted ASU 2015-17 in the first quarter of 2016. Our adoption of that ASU did not have material impact on the presentation of our Consolidated Financial Statements. All comparable periods presented have been revised to reflect this change. Consolidation— In September 2015, the FASB issued ASU 2015-16, . This ASU eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, The amendments in ASUs 2015-16 and 2015-02 are effective for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. We adopted these ASUs in the first quarter of 2016. Our adoption of these ASUs did not have material impact on the accompanying Consolidated Financial Statements. Accounting Guidance Issued But Not Adopted as of March 31, 2016 Stock Compensation —In March 2016, the FASB issued ASU 2016-09, This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. The application of this ASU is not expected to have a material impact on our future Consolidated Financial Statements and related disclosures. Derivatives —In March 2016, the FASB issued ASU 2016-06 . This ASU clarifies that a contingent put or call option embedded in a debt instrument would be evaluated for possible separate accounting as a derivative instrument without regard to the nature of the exercise contingency. This ASU is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. We are currently assessing the impact of this guidance on our future Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU 2016-05 , Derivatives and hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. Leases —In February 2016, the FASB issued ASU 2016-02 . The ASU will require entities that lease assets—referred to as “lessees”—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current U.S. GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the impact of this ASU on our future Consolidated Financial Statements and related disclosures. Financial Assets and Liabilities —In January 2016, the FASB issued ASU 2016-01, . Under this new guidance, entities will be required to measure all investments in equity securities that are not subject to equity method or consolidation accounting at fair value, with changes recognized in net income. Fair value changes related to instrument-specific credit risk in financial liabilities accounted for under the fair value option in Accounting Standards Codification 825 must be recorded in other comprehensive income instead of earnings. ASU 2016-01 also changes presentation and disclosure requirements for financial assets and liabilities. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017, with early adoption not permitted except related to changes in fair value for financial liabilities. 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 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 (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting revenue Gross versus Net) We are currently evaluating the requirements of these ASUs and have not yet determined their impacts on our future Consolidated Financial Statements and related disclosures. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2016 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | NOTE 2—REVENUE RECOGNITION Unapproved Change Orders As of March 31, 2016, total unapproved change orders included in our estimates at completion aggregated approximately $122 million, of which approximately $20 million was included in backlog. As of March 31, 2015, total unapproved change orders included in our estimates at completion aggregated approximately $240 million, of which approximately $73 million was included in backlog. Claims Revenue The amount of revenues and costs included in our estimates at completion (i.e., contract values) associated with claims was $16 million and $7 million as of March 31, 2016 and 2015, respectively, all in our Middle East segment. These amounts are determined based on various factors, including our analysis of the underlying contractual language and our experience in making and resolving claims. Our unconsolidated joint ventures did not include any material claims revenue or associated costs in their financial results for the quarters ended March 31, 2016 and 2015. None of the claims included in our estimates at completion at March 31, 2016 were the subject of any litigation proceedings. We continue to actively engage in negotiations with our customers on our outstanding claims. However, these claims may be resolved at amounts that differ from our current estimates, which could result in increases or decreases in future estimated contract profits or losses. Loss Recognition As of March 31, 2016, 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. For loss projects, it is possible that our estimates of gross profit could increase or decrease based on changes in productivity, actual downtime and the resolution of change orders and claims with the customers. As of March 31, 2016, one significant active project, the Agile |
USE OF ESTIMATES
USE OF ESTIMATES | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, 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 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 months ended March 31, 2016 and 2015. Three months ended March 31, 2016 Operating income for the three months ended March 31, 2016 was positively impacted by net favorable changes in cost estimates totaling approximately $40 million across all segments. Americas, Europe and Africa Segment (“AEA”) — This segment was positively impacted by net favorable changes in estimates aggregating approximately $16 million, primarily attributable to successful execution and close-out improvements on two significant projects, PB Litoral and Exxon Julia Subsea Tieback, in the first quarter of 2016. Included in the change was a reversal of a $7 million provision for liquidated damages due to an agreed extension of the PB Litoral project completion date. Miscellaneous other projects also experienced net positive changes in estimate, which were individually not material. Middle East Segment (“MEA”) — This segment was positively impacted by net favorable changes in estimates aggregating approximately $7 million, primarily due to productivity improvements and associated cost savings related to the vessel on a Saudi Aramco project and cost savings on miscellaneous other projects. Asia Segment (“ASA”) — This segment had net favorable changes in estimates aggregating approximately $17 million driven by improved productivity and project execution cost savings on the Inpex Ichthys project, agreement on outstanding change orders on the Brunei Shell Petroleum pipeline replacement project and agreement on outstanding change orders and cost savings on miscellaneous other projects. Three months ended March 31, 2015 Operating income for the three months ended March 31, 2015 was positively impacted by net favorable changes in cost estimates totaling approximately $22 million across all segments. AEA — This segment was positively impacted by net favorable changes in estimates aggregating approximately $7 million, primarily due to $4 million in reduced cost estimates attributable to a revised demobilization plan for one of our vessels, the (the “ ”), which is currently working on a subsea project in Brazil. MEA — This segment was positively impacted by net favorable changes in estimates aggregating approximately $9 million. Two EPCI projects in Saudi Arabia were positively impacted by $7 million of changes in revenue recovery and cost savings based on constructive discussions with the customer on design optimization and by $6 million for improvement in revenue recovery estimates and due to the favorable outcome of our discussions with the customer on compensation for vessel downtime due to weather and standby delays. These favorable changes were partially offset by the $5 million negative impact on an EPCI project in Saudi Arabia, primarily due to changes in cost estimates as a result of a change in marine execution plans. ASA — This segment was positively impacted by net favorable changes in estimates aggregating approximately $6 million, driven by multiple projects, none of the individual results of which were material. |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
RESTRUCTURING | NOTE 4—RESTRUCTURING In 2014 we completed a major review of our cost structure, and subsequently implemented a plan, which we referred to as the McDermott Profitability Initiative We continued our efforts to improve our cost structure by initiating the Additional Overhead Reduction 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 table presents amounts incurred during the three months ended March 31, 2016 and 2015, as well as amounts incurred from the inception of our restructuring efforts up to March 31, 2016 and amounts expected to be incurred in the future, by major type of cost and by segment. Incurred in the three months ended March 31, Incurred from inception to Estimate of remaining amounts to be 2016 2015 March 31, 2016 incurred Total (in thousands) Americas Restructuring Impairments and write offs $ - $ - $ 12,923 $ - $ 12,923 Severance and other personnel-related costs - 881 13,981 - 13,981 Morgan City environmental reserve - - 5,925 - 5,925 Morgan City yard-related expenses - 914 12,557 - 12,557 Other - - 158 - 158 - 1,795 45,544 - 45,544 Corporate Restructuring - - 6,601 - 6,601 MPI Severance and other personnel-related costs AEA - 1,252 6,646 - 6,646 MEA - 607 856 - 856 ASA 433 1,800 6,537 1,898 8,435 Corporate and other - 719 1,611 - 1,611 Asset impairment and disposal - ASA - 4,168 7,471 - 7,471 Legal and other advisor fees - ASA - 390 390 Corporate 173 48 11,590 - 11,590 Other - AEA - - 692 - 692 ASA 895 - 6,829 2,327 9,156 Corporate and other - - 983 - 983 1,501 8,594 43,215 4,615 47,830 AOR Severance and other personnel-related costs AEA 2,186 - 2,186 795 2,981 ASA - - - 400 400 Corporate 785 - 785 472 1,257 Legal and other advisor fees - - Corporate 1,728 - 2,528 - 2,528 Other - AEA 150 - 150 - 150 MEA 17 - 17 - 17 Corporate - - - 2,469 2,469 4,866 - 5,666 4,136 9,802 Total $ 6,367 $ 10,389 $ 101,026 $ 8,751 $ 109,777 By segment AEA $ 2,336 $ 3,047 $ 55,218 $ 795 $ 56,013 MEA 17 607 873 - 873 ASA 1,328 5,968 20,837 5,015 25,852 Corporate 2,686 767 24,098 2,941 27,039 Total $ 6,367 $ 10,389 $ 101,026 $ 8,751 $ 109,777 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 5—ACCOUNTS RECEIVABLE Accounts Receivable—Trade, Net A summary of contract receivables is as follows: March 31, 2016 December 31, 2015 (in thousands) Contract receivables: Contracts in progress $ 228,929 164,898 Completed contracts 45,235 35,702 Retainages 7,587 17,896 Unbilled 4,303 4,303 Less allowances (14,341 ) (14,325 ) Accounts receivable—trade, net $ 271,713 $ 208,474 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: March 31, 2016 December 31, 2015 (in thousands) Retainages expected to be collected within one year $ 7,587 $ 17,896 Retainages expected to be collected after one year 160,515 155,061 Total retainages $ 168,102 $ 172,957 |
CONTRACTS IN PROGRESS AND ADVAN
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS | 3 Months Ended |
Mar. 31, 2016 | |
Contractors [Abstract] | |
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS | NOTE 6—CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS A detail of the components of contracts in progress and advance billings on contracts is as follows: March 31, 2016 December 31, 2015 (In thousands) Costs incurred less costs of revenues recognized $ 119,879 $ 112,819 Revenues recognized less billings to customers 238,622 323,010 Contracts in Progress $ 358,501 $ 435,829 Billings to customers less revenues recognized 106,249 265,618 Costs incurred less costs of revenue recognized 32,023 (100,845 ) Advance Billings on Contracts $ 138,272 $ 164,773 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 7—DEBT The carrying values of our long-term debt obligations, net of debt issuance costs of $18 million and $20 million as of March 31, 2016 and December 31, 2015, respectively, are as follows: March 31, 2016 December 31, 2015 (In thousands) Senior Notes $ 492,306 $ 491,890 Term Loan 289,771 289,979 North Ocean 105 Construction Financing 38,399 38,263 Amortizing Notes 18,005 21,205 Capital lease obligation 2,458 2,546 840,939 843,883 Less: Amounts due within one year 25,298 24,882 Total long-term debt $ 815,641 $ 819,001 Credit Agreement, Senior Notes and Amortizing Notes In April 2014 we entered into a credit agreement (the “Credit Agreement”), which initially provided for a $400 million first-lien, first-out three-year letter of credit facility (the “LC Facility”), which is scheduled to mature in 2017, and a $300 million first-lien, second-out five-year term loan (the “Term Loan”), which is scheduled to mature in 2019. We also completed the issuance of (a) $500 million of second-lien, seven-year, senior secured notes; and (b) $288 million of tangible equity units (“TEUs”) composed of (1) three-year amortizing, senior unsecured notes, in an aggregate principal amount of $48 million, and (2) prepaid common stock purchase contracts. In October 2015, we entered into an Amendment No. 1, which amended the Credit Agreement primarily to increase the existing LC Facility from $400 million to $520 million. In February 2016, we entered into an Amendment No. 2 to the Credit Agreement, which amended the Credit Agreement to permit us to add to Covenant EBITDA certain cash restructuring expenses related to the conclusion of MPI or implementation of AOR for the quarters ending on or after March 31, 2016 but before April 16, 2017, in an aggregate amount not to exceed $25 million (as of any date of determination). On April 18, 2016, we entered into an Amendment No. 3 to the Credit Agreement, which, among other things: · replaced the existing EBITDA covenant with new ratios (as defined in Amendment No. 3) as follows: · a minimum fixed charge coverage ratio of 1.15x for the fiscal quarter ended March 31, 2016 and each fiscal quarter thereafter; · a maximum total leverage ratio of 4.5x for the fiscal quarter ended March 31, 2016 and each subsequent fiscal quarter through June 30, 2017, 4.0x for the fiscal quarters ending September 30, 2017 and December 31, 2017, and 3.5x for each fiscal quarter thereafter; and · a maximum secured leverage ratio of 2.0x for the fiscal quarter ended March 31, 2016 and each subsequent fiscal quarter through December 31, 2017, and 1.5x for each fiscal quarter thereafter; · amended the maximum capital expenditure covenant to limit capital expenditures in 2016 and thereafter to $250 million each fiscal year, with any prior fiscal year unused capital expenditure up to $125 million able to be carried forward and added to the next year’s capital expenditure capacity, for a total of $375 million. This change to our financial covenants was effective for the covenants tested as of March 31, 2016, and we were in compliance with these requirements, as shown below: Ratios Requirement Actual Minimum fixed charge coverage ratio 1.15x 2.75x Maximum total leverage ratio 4.5x 2.50x Maximum secured leverage ratio 2x 0.94x As of March 31, 2016 and December 31, 2015, the aggregate face amount of letters of credit issued under the LC Facility was $467 million and $384 million, respectively. No financial letters of credit have been issued under the LC Facility. The LC Facility permits us to deposit up to $300 million with letter of credit issuers to cash collateralize letters of credit issued on a bilateral basis outside the credit facility. As of March 31, 2016 and December 31, 2015, we had an aggregate face amount of approximately $100 million and $102 million of such letters of credit outstanding supported by cash collateral, including financial letters of credit of $43 million and $45 million, respectfully. We have included the supporting cash collateral in restricted cash and cash equivalents in the accompanying Consolidated Balance Sheets. Also, in April 2016, we entered into an unsecured and uncommitted bilateral letter of credit arrangement for approximately $100 million with a Middle Eastern bank. The newly issued bilateral letter of credit arrangement is anticipated to support our Middle Eastern business. North Ocean Financing NO 105 ―On September 30, 2010, MDR, as guarantor, and North Ocean 105 AS, in which we have a 75% ownership interest, as borrower, entered into a financing agreement to finance a portion of the construction costs of the Borrowings under the agreement are secured by, among other things, a pledge of all of the equity of North Ocean 105 AS, a mortgage on the , and a lien on substantially all of the other assets of North Ocean 105 AS. MDR unconditionally guaranteed all amounts to be borrowed under the agreement. Under the current LC Facility, we are required to exercise our option under the North Ocean 105 AS joint venture agreement to purchase Oceanteam ASA’s 25% ownership interest in the vessel-owning company and repay the outstanding debt by April 2017. Bank Guarantees In 2015, MDR executed a reimbursement agreement with a Middle East based bank which provides an uncommitted line of credit in support of our contracting activities in the Middle East. There are no administrative or commitment fees associated with the agreement. As of March 31, 2016, bank guarantees issued under that agreement were $28 million. Bank guarantees issued under other general reimbursement arrangements totaled $101 million and $100 million, as of March 31, 2016 and December 31, 2015, respectively. Surety Bonds As of March 31, 2016 and December 31, 2015, surety bonds issued under general agreements of indemnity in favor of surety underwriters in support of contracting activities of our subsidiaries J. Ray McDermott de México, S.A. de C.V. and McDermott, Inc. totaled $73 million and $54 million, respectively. |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
PENSION AND POSTRETIREMENT BENEFITS | NOTE 8—PENSION AND POSTRETIREMENT BENEFITS Net periodic benefit gain 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 TCN Plan Three Months Ended March 31, 2016 2015 2016 2015 (In thousands) Interest cost $ 5,259 $ 5,382 $ 338 $ 407 Expected return on plan assets (5,003 ) (6,677 ) (397 ) (710 ) Net periodic (benefit) cost $ 256 $ (1,295 ) $ (59 ) $ (303 ) |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
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 Accumulated Other Comprehensive Income (“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 our Consolidated Statements of Operations. As of March 31, 2016, the majority of our foreign currency forward contracts were designated as cash flow hedging instruments. In addition, we deferred approximately $33 million of net losses on those derivative financial instruments in AOCI, and we expect to reclassify approximately $24 million of deferred losses out of AOCI by March 31, 2017, as hedged items are recognized. The notional value of our outstanding derivative contracts totaled $536 million at March 31, 2016, with maturities extending through December 2017. Of this amount, approximately $286 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 March 31, 2016, the fair value of these contracts was in a net liability position totaling approximately $3 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. The following tables summarize our derivative financial instruments: Asset and Liability Derivatives March 31, 2016 December 31, 2015 (In thousands) Derivatives Designated as Hedges: Location: Accounts receivable—other $ 7,686 $ 1,668 Other assets 154 215 Total asset derivatives $ 7,840 $ 1,883 Accounts payable $ 8,330 $ 26,649 Other liabilities 2,080 4,018 Total liability derivatives $ 10,410 $ 30,667 The Effects of Derivative Instruments on our Financial Statements March 31, 2016 2015 (In thousands) Derivatives Designated as Hedges: Amount of loss recognized in other comprehensive income (loss) $ 20,534 $ 36,690 Income reclassified from AOCI into income: effective portion Location: Cost of operations 9,679 19,854 Gain(loss) recognized in income (loss): ineffective portion and amount excluded from effectiveness testing Location: Gain (loss) on foreign currency—net (1,205 ) 1,817 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10—FAIR VALUE MEASUREMENTS The following table presents the financial instruments outstanding as of March 31, 2016 and December 31, 2015 that are measured at fair value on recurring basis and financial instruments that are not measured at fair value on a recurring basis. March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Recurring Forward contracts $ (2,570 ) $ (2,570 ) $ - $ (2,570 ) $ - Non-recurring Cash and cash equivalents 696,103 696,103 696,103 - - Restricted cash and cash equivalents 101,726 101,726 101,726 - - Debt (840,939 ) (733,743 ) - (667,540 ) (66,203 ) December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Recurring Forward contracts $ (28,784 ) $ (28,784 ) $ - $ (28,784 ) $ - Non-recurring Cash and cash equivalents 664,844 664,844 664,844 - - Restricted cash and cash equivalents 116,801 116,801 116,801 - - Debt (843,883 ) (777,634 ) - (707,492 ) (70,142 ) 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 valued using a market approach based on quoted prices for similar instruments traded in active markets is classified as Level 2 within the fair value hierarchy. Quoted prices are not available for Amortizing Notes and NO 105 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. Fair Value Disclosure of Non-financial Assets During the first quarter of 2016, we impaired our Agile Property, Plant and Equipment Another vessel, the DB101 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | NOTE 11—STOCKHOLDERS’ EQUITY The changes in the number of ordinary shares outstanding and treasury shares held by the Company are as follows: Three Months Ended March 31, 2016 2015 Ordinary shares outstanding Beginning balance 239,016,924 237,809,823 Common stock issued 1,907,215 990,039 Purchase of common stock (569,999 ) (300,553 ) Ending balance 240,354,140 238,499,309 Ordinary shares held as Treasury shares Beginning balance 7,824,204 7,400,027 Purchase of common stock 569,999 300,553 Retirement of common stock (373,776 ) - Ending balance 8,020,427 7,700,580 Ordinary shares issued at the end of the period 248,374,567 246,199,889 Accumulated Other Comprehensive Income (Loss) (AOCI) The components of AOCI included in stockholders’ equity are as follows: March 31, 2016 December 31, 2015 (In thousands) Foreign currency translation adjustments (“FCTA”) $ (33,268 ) $ (29,925 ) Net unrealized gain on investments 252 247 Net loss on derivative financial instruments (33,473 ) (64,277 ) Accumulated other comprehensive loss $ (66,489 ) $ (93,955 ) During the first quarter of 2016 we recorded a $7 million adjustment decreasing FCTA with an offsetting reduction of Loss on foreign currency, net to correct amounts accounted for inappropriately in a previous period. The following table presents the components of AOCI and the amounts that were reclassified during the periods indicated: Foreign currency translation adjustments Unrealized holding gain (loss) on investments Gain (loss) on derivative (1) TOTAL (In thousands) Balance, January 1, 2015 $ (15,212 ) $ 241 $ (82,837 ) $ (97,808 ) Other comprehensive income (loss) before reclassification (2,042 ) 12 (36,690 ) (38,720 ) Amounts reclassified from AOCI - - 19,838 (2) 19,838 Net current period other comprehensive income (loss) (2,042 ) 12 (16,852 ) (18,882 ) Balance, March 31, 2015 $ (17,254 ) $ 253 $ (99,689 ) $ (116,690 ) Balance, January 1, 2016 $ (29,925 ) $ 247 $ (64,277 ) $ (93,955 ) Other comprehensive income (loss) before reclassification (3,343 ) 5 20,534 17,196 Amounts reclassified from AOCI - - 10,270 (2) 10,270 Net current period other comprehensive income (loss) (3,343 ) 5 30,804 27,466 Balance, March 31, 2016 $ (33,268 ) $ 252 $ (33,473 ) $ (66,489 ) (1) (2) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (In thousands, except share and per share amounts) Net loss attributable to McDermott International, Inc. $ (2,172 ) $ (14,507 ) Weighted average common shares (basic) 239,137,912 237,504,719 Effect of dilutive securities: Tangible equity units - - Stock options, restricted stock and restricted stock units - - Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) 239,137,912 237,504,719 Loss per share Net loss attributable to McDermott International, Inc. Basic: (0.01 ) (0.06 ) Diluted: (0.01 ) (0.06 ) Approximately 7 million and 3.3 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 months ended March 31, 2016 and 2015, respectively. Potential dilutive common shares for the settlement of the common stock purchase contracts totaling 40.9 million shares were considered in the calculation of diluted weighted-average shares for the three months ended March 31, 2016 and 2015; however, due to our net loss position, they have not been reflected above because they would be anti-dilutive . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13—COMMITMENTS AND CONTINGENCIES Litigation D ue 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. As of March 31, 2016 and December 31, 2015, we had total environmental accruals of $2 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 March 31, 2016, we have not recorded in our Consolidated Financial Statements approximately $10 million of potential liquidated damages liability. 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 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. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 14—SEGMENT REPORTING We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting We manage operating segments along geographic lines consisting of AEA, MEA and ASA. We also report certain corporate and other non-operating activities under the heading “Corporate and Other.” Corporate and Other primarily reflects corporate personnel and activities, incentive compensation programs and other costs, which are generally fully allocated to our operating segments. The only corporate costs currently not being allocated to our operating segments are the restructuring costs associated with our corporate reorganization. We account for intersegment sales at prices that we generally establish by reference to similar transactions with unaffiliated customers. Reporting segments are measured based on operating income, which is defined as revenues reduced by total costs and expenses and equity in loss of unconsolidated affiliates. 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 March 31, 2016 2015 (in thousands) Revenues (1) AEA $ 62,625 $ 143,313 MEA 270,255 153,800 ASA 396,152 253,350 Total revenues $ 729,032 $ 550,463 Operating income (loss) (2) AEA $ (24,921 ) $ 16,257 MEA 38,467 5,242 ASA 25,133 (7,426 ) Corporate (2,686 ) (767 ) Total operating income $ 35,993 $ 13,306 Capital expenditures (3) AEA $ 2,585 $ 2,913 MEA 2,234 10,114 ASA 27,008 10,824 Corporate and Other 73 121 Total capital expenditures $ 31,900 $ 23,972 Depreciation and amortization: AEA $ 7,143 $ 12,823 MEA 4,811 5,738 ASA 6,389 3,916 Corporate and Other 2,259 2,850 Total depreciation and amortization $ 20,602 $ 25,327 Drydock amortization: AEA $ 3,176 $ 3,083 MEA 535 613 ASA 229 1,576 Total drydock amortization $ 3,940 $ 5,272 (1) (2) Agile DB101 (3) Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended March 31, 2016 exclude $2 million in accrued liabilities related to capital expenditures as of December 31, 2015. Capital expenditures for the three months ended March 31, 2015 include $3 million of cash payments for accrued capital expenditures outstanding as of December 31, 2014. March 31, 2016 December 31, 2015 (In thousands) Segment assets: AEA $ 772,111 $ 896,822 MEA 984,296 971,170 ASA 825,029 774,365 Corporate and Other 790,122 744,719 $ 3,371,558 $ 3,387,076 |
BASIS OF PRESENTATION AND SIG22
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations McDermott International, Inc. (“MDR”), a corporation incorporated under the laws of the Republic of Panama in 1959, is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”) and module fabrication services for upstream field developments worldwide. We deliver fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects. Operating in approximately 20 countries across Americas, Europe, Africa, the Middle East, Asia and Australia, our integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. 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 Consolidated Financial Statements, unless the context otherwise indicates, “we,” “us” and “our” mean MDR 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 MDR’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 22, 2016. |
Classification | Classification Certain prior year amounts have been reclassified for consistency with the current year presentation. Our Consolidated Financial Statements previously reported Loss from investment in unconsolidated affiliates as components of operating income. In the first quarter of 2016, we concluded that classification of loss from investments in unconsolidated affiliates after provision for income tax better reflected how the operations of our unconsolidated affiliates relate to our business as a whole. |
Recently Issued and Adopted Accounting Guidance | Recently Issued and Adopted Accounting Guidance Income Tax— In November 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-17, . Under this ASU an entity shall classify deferred tax assets and liabilities as noncurrent. We adopted ASU 2015-17 in the first quarter of 2016. Our adoption of that ASU did not have material impact on the presentation of our Consolidated Financial Statements. All comparable periods presented have been revised to reflect this change. Consolidation— In September 2015, the FASB issued ASU 2015-16, . This ASU eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, The amendments in ASUs 2015-16 and 2015-02 are effective for annual and interim periods beginning after December 15, 2015. Early adoption was permitted. We adopted these ASUs in the first quarter of 2016. Our adoption of these ASUs did not have material impact on the accompanying Consolidated Financial Statements. |
Accounting Guidance Issued But Not Adopted | Accounting Guidance Issued But Not Adopted as of March 31, 2016 Stock Compensation —In March 2016, the FASB issued ASU 2016-09, This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. The application of this ASU is not expected to have a material impact on our future Consolidated Financial Statements and related disclosures. Derivatives —In March 2016, the FASB issued ASU 2016-06 . This ASU clarifies that a contingent put or call option embedded in a debt instrument would be evaluated for possible separate accounting as a derivative instrument without regard to the nature of the exercise contingency. This ASU is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. We are currently assessing the impact of this guidance on our future Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU 2016-05 , Derivatives and hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. Leases —In February 2016, the FASB issued ASU 2016-02 . The ASU will require entities that lease assets—referred to as “lessees”—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current U.S. GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the impact of this ASU on our future Consolidated Financial Statements and related disclosures. Financial Assets and Liabilities —In January 2016, the FASB issued ASU 2016-01, . Under this new guidance, entities will be required to measure all investments in equity securities that are not subject to equity method or consolidation accounting at fair value, with changes recognized in net income. Fair value changes related to instrument-specific credit risk in financial liabilities accounted for under the fair value option in Accounting Standards Codification 825 must be recorded in other comprehensive income instead of earnings. ASU 2016-01 also changes presentation and disclosure requirements for financial assets and liabilities. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017, with early adoption not permitted except related to changes in fair value for financial liabilities. 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 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 (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting revenue Gross versus Net) We are currently evaluating the requirements of these ASUs and have not yet determined their impacts on our future Consolidated Financial Statements and related disclosures. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs Incurred and Future Cost Expected to be Incurred | Incurred in the three months ended March 31, Incurred from inception to Estimate of remaining amounts to be 2016 2015 March 31, 2016 incurred Total (in thousands) Americas Restructuring Impairments and write offs $ - $ - $ 12,923 $ - $ 12,923 Severance and other personnel-related costs - 881 13,981 - 13,981 Morgan City environmental reserve - - 5,925 - 5,925 Morgan City yard-related expenses - 914 12,557 - 12,557 Other - - 158 - 158 - 1,795 45,544 - 45,544 Corporate Restructuring - - 6,601 - 6,601 MPI Severance and other personnel-related costs AEA - 1,252 6,646 - 6,646 MEA - 607 856 - 856 ASA 433 1,800 6,537 1,898 8,435 Corporate and other - 719 1,611 - 1,611 Asset impairment and disposal - ASA - 4,168 7,471 - 7,471 Legal and other advisor fees - ASA - 390 390 Corporate 173 48 11,590 - 11,590 Other - AEA - - 692 - 692 ASA 895 - 6,829 2,327 9,156 Corporate and other - - 983 - 983 1,501 8,594 43,215 4,615 47,830 AOR Severance and other personnel-related costs AEA 2,186 - 2,186 795 2,981 ASA - - - 400 400 Corporate 785 - 785 472 1,257 Legal and other advisor fees - - Corporate 1,728 - 2,528 - 2,528 Other - AEA 150 - 150 - 150 MEA 17 - 17 - 17 Corporate - - - 2,469 2,469 4,866 - 5,666 4,136 9,802 Total $ 6,367 $ 10,389 $ 101,026 $ 8,751 $ 109,777 By segment AEA $ 2,336 $ 3,047 $ 55,218 $ 795 $ 56,013 MEA 17 607 873 - 873 ASA 1,328 5,968 20,837 5,015 25,852 Corporate 2,686 767 24,098 2,941 27,039 Total $ 6,367 $ 10,389 $ 101,026 $ 8,751 $ 109,777 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Contract Receivables | A summary of contract receivables is as follows: March 31, 2016 December 31, 2015 (in thousands) Contract receivables: Contracts in progress $ 228,929 164,898 Completed contracts 45,235 35,702 Retainages 7,587 17,896 Unbilled 4,303 4,303 Less allowances (14,341 ) (14,325 ) Accounts receivable—trade, net $ 271,713 $ 208,474 |
Retainages on Contracts | The following is a summary of retainages on our contracts: March 31, 2016 December 31, 2015 (in thousands) Retainages expected to be collected within one year $ 7,587 $ 17,896 Retainages expected to be collected after one year 160,515 155,061 Total retainages $ 168,102 $ 172,957 |
CONTRACTS IN PROGRESS AND ADV25
CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Contractors [Abstract] | |
Components of Contracts in Progress and Advance Billings on Contracts | A detail of the components of contracts in progress and advance billings on contracts is as follows: March 31, 2016 December 31, 2015 (In thousands) Costs incurred less costs of revenues recognized $ 119,879 $ 112,819 Revenues recognized less billings to customers 238,622 323,010 Contracts in Progress $ 358,501 $ 435,829 Billings to customers less revenues recognized 106,249 265,618 Costs incurred less costs of revenue recognized 32,023 (100,845 ) Advance Billings on Contracts $ 138,272 $ 164,773 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Obligations | The carrying values of our long-term debt obligations, net of debt issuance costs of $18 million and $20 million as of March 31, 2016 and December 31, 2015, respectively, are as follows: March 31, 2016 December 31, 2015 (In thousands) Senior Notes $ 492,306 $ 491,890 Term Loan 289,771 289,979 North Ocean 105 Construction Financing 38,399 38,263 Amortizing Notes 18,005 21,205 Capital lease obligation 2,458 2,546 840,939 843,883 Less: Amounts due within one year 25,298 24,882 Total long-term debt $ 815,641 $ 819,001 |
Schedule Of Required Covenants Credit Agreement Compared To Actual Amounts | This change to our financial covenants was effective for the covenants tested as of March 31, 2016, and we were in compliance with these requirements, as shown below: Ratios Requirement Actual Minimum fixed charge coverage ratio 1.15x 2.75x Maximum total leverage ratio 4.5x 2.50x Maximum secured leverage ratio 2x 0.94x |
PENSION AND POSTRETIREMENT BE27
PENSION AND POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost | Net periodic benefit gain 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 TCN Plan Three Months Ended March 31, 2016 2015 2016 2015 (In thousands) Interest cost $ 5,259 $ 5,382 $ 338 $ 407 Expected return on plan assets (5,003 ) (6,677 ) (397 ) (710 ) Net periodic (benefit) cost $ 256 $ (1,295 ) $ (59 ) $ (303 ) |
DERIVATIVE FINANCIAL INSTRUME28
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | The following tables summarize our derivative financial instruments: Asset and Liability Derivatives March 31, 2016 December 31, 2015 (In thousands) Derivatives Designated as Hedges: Location: Accounts receivable—other $ 7,686 $ 1,668 Other assets 154 215 Total asset derivatives $ 7,840 $ 1,883 Accounts payable $ 8,330 $ 26,649 Other liabilities 2,080 4,018 Total liability derivatives $ 10,410 $ 30,667 |
Effects of Derivative Instruments on Financial Statements | The Effects of Derivative Instruments on our Financial Statements March 31, 2016 2015 (In thousands) Derivatives Designated as Hedges: Amount of loss recognized in other comprehensive income (loss) $ 20,534 $ 36,690 Income reclassified from AOCI into income: effective portion Location: Cost of operations 9,679 19,854 Gain(loss) recognized in income (loss): ineffective portion and amount excluded from effectiveness testing Location: Gain (loss) on foreign currency—net (1,205 ) 1,817 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Outstanding Measured at Fair Value on Recurring and Nonrecurring Basis | The following table presents the financial instruments outstanding as of March 31, 2016 and December 31, 2015 that are measured at fair value on recurring basis and financial instruments that are not measured at fair value on a recurring basis. March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Recurring Forward contracts $ (2,570 ) $ (2,570 ) $ - $ (2,570 ) $ - Non-recurring Cash and cash equivalents 696,103 696,103 696,103 - - Restricted cash and cash equivalents 101,726 101,726 101,726 - - Debt (840,939 ) (733,743 ) - (667,540 ) (66,203 ) December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Recurring Forward contracts $ (28,784 ) $ (28,784 ) $ - $ (28,784 ) $ - Non-recurring Cash and cash equivalents 664,844 664,844 664,844 - - Restricted cash and cash equivalents 116,801 116,801 116,801 - - Debt (843,883 ) (777,634 ) - (707,492 ) (70,142 ) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Changes in the Number of Ordinary Shares Outstanding and Treasury Shares Held by the Company | The changes in the number of ordinary shares outstanding and treasury shares held by the Company are as follows: Three Months Ended March 31, 2016 2015 Ordinary shares outstanding Beginning balance 239,016,924 237,809,823 Common stock issued 1,907,215 990,039 Purchase of common stock (569,999 ) (300,553 ) Ending balance 240,354,140 238,499,309 Ordinary shares held as Treasury shares Beginning balance 7,824,204 7,400,027 Purchase of common stock 569,999 300,553 Retirement of common stock (373,776 ) - Ending balance 8,020,427 7,700,580 Ordinary shares issued at the end of the period 248,374,567 246,199,889 |
Components of Accumulated Other Comprehensive Income (Loss) Included in Stockholders' Equity | The components of AOCI included in stockholders’ equity are as follows: March 31, 2016 December 31, 2015 (In thousands) Foreign currency translation adjustments (“FCTA”) $ (33,268 ) $ (29,925 ) Net unrealized gain on investments 252 247 Net loss on derivative financial instruments (33,473 ) (64,277 ) Accumulated other comprehensive loss $ (66,489 ) $ (93,955 ) |
Reclassifications [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Components of Accumulated Other Comprehensive Income (Loss) Included in Stockholders' Equity | The following table presents the components of AOCI and the amounts that were reclassified during the periods indicated: Foreign currency translation adjustments Unrealized holding gain (loss) on investments Gain (loss) on derivative (1) TOTAL (In thousands) Balance, January 1, 2015 $ (15,212 ) $ 241 $ (82,837 ) $ (97,808 ) Other comprehensive income (loss) before reclassification (2,042 ) 12 (36,690 ) (38,720 ) Amounts reclassified from AOCI - - 19,838 (2) 19,838 Net current period other comprehensive income (loss) (2,042 ) 12 (16,852 ) (18,882 ) Balance, March 31, 2015 $ (17,254 ) $ 253 $ (99,689 ) $ (116,690 ) Balance, January 1, 2016 $ (29,925 ) $ 247 $ (64,277 ) $ (93,955 ) Other comprehensive income (loss) before reclassification (3,343 ) 5 20,534 17,196 Amounts reclassified from AOCI - - 10,270 (2) 10,270 Net current period other comprehensive income (loss) (3,343 ) 5 30,804 27,466 Balance, March 31, 2016 $ (33,268 ) $ 252 $ (33,473 ) $ (66,489 ) (1) (2) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (In thousands, except share and per share amounts) Net loss attributable to McDermott International, Inc. $ (2,172 ) $ (14,507 ) Weighted average common shares (basic) 239,137,912 237,504,719 Effect of dilutive securities: Tangible equity units - - Stock options, restricted stock and restricted stock units - - Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) 239,137,912 237,504,719 Loss per share Net loss attributable to McDermott International, Inc. Basic: (0.01 ) (0.06 ) Diluted: (0.01 ) (0.06 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Information about Operations in Different Segments | Summarized financial information is shown in the following tables: Three Months Ended March 31, 2016 2015 (in thousands) Revenues (1) AEA $ 62,625 $ 143,313 MEA 270,255 153,800 ASA 396,152 253,350 Total revenues $ 729,032 $ 550,463 Operating income (loss) (2) AEA $ (24,921 ) $ 16,257 MEA 38,467 5,242 ASA 25,133 (7,426 ) Corporate (2,686 ) (767 ) Total operating income $ 35,993 $ 13,306 Capital expenditures (3) AEA $ 2,585 $ 2,913 MEA 2,234 10,114 ASA 27,008 10,824 Corporate and Other 73 121 Total capital expenditures $ 31,900 $ 23,972 Depreciation and amortization: AEA $ 7,143 $ 12,823 MEA 4,811 5,738 ASA 6,389 3,916 Corporate and Other 2,259 2,850 Total depreciation and amortization $ 20,602 $ 25,327 Drydock amortization: AEA $ 3,176 $ 3,083 MEA 535 613 ASA 229 1,576 Total drydock amortization $ 3,940 $ 5,272 (1) (2) Agile DB101 (3) Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended March 31, 2016 exclude $2 million in accrued liabilities related to capital expenditures as of December 31, 2015. Capital expenditures for the three months ended March 31, 2015 include $3 million of cash payments for accrued capital expenditures outstanding as of December 31, 2014. |
Information about Segment Assets by Country | March 31, 2016 December 31, 2015 (In thousands) Segment assets: AEA $ 772,111 $ 896,822 MEA 984,296 971,170 ASA 825,029 774,365 Corporate and Other 790,122 744,719 $ 3,371,558 $ 3,387,076 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | Mar. 31, 2016Country |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of countries | 20 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Project | Mar. 31, 2015USD ($) | ||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Unapproved change orders | $ 122,000,000 | $ 240,000,000 | |
Revenues | [1] | 729,032,000 | 550,463,000 |
Cost of operations | 616,033,000 | 475,459,000 | |
MEA [Member] | Unconsolidated joint ventures [Member] | |||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Revenues | 0 | 0 | |
Cost of operations | 0 | 0 | |
MEA [Member] | Claims Revenue [Member] | |||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Revenues | 16,000,000 | 7,000,000 | |
Cost of operations | 16,000,000 | 7,000,000 | |
Backlog [Member] | |||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Unapproved change orders | 20,000,000 | $ 73,000,000 | |
Backlog Related To Active Projects [Member] | |||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Loss on contracts | $ 5,000,000 | ||
Active Projects [Member] | |||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||
Number of projects accounted under deferred profit recognition policy | Project | 1 | ||
[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 | |
Mar. 31, 2016USD ($)Project | Mar. 31, 2015USD ($)Project | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | $ 40 | $ 22 |
AEA [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | 16 | 7 |
AEA [Member] | PB Litoral project [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | $ 7 | |
Number of projects | Project | 2 | |
AEA [Member] | Subsea Project [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | 4 | |
MEA [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | $ 7 | $ 9 |
Number of projects | Project | 2 | |
MEA [Member] | EPCI project two Saudi Arabia [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | $ 7 | |
MEA [Member] | EPCI project two Saudi Arabia [Member] | Project Two | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | 6 | |
MEA [Member] | EPCI projects Saudi Arabia [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | (5) | |
ASA [Member] | ||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||
Effect of changes in estimated project cost on operating results | $ 17 | $ 6 |
Restructuring - Restructuring C
Restructuring - Restructuring Costs Incurred and Future Cost Expected to be Incurred (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | $ 6,367 | $ 10,389 |
Incurred from inception to March 31, 2016 | 101,026 | |
Estimate of remaining amounts to be incurred | 8,751 | |
Total | 109,777 | |
Americas Restructuring [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 1,795 | |
Incurred from inception to March 31, 2016 | 45,544 | |
Total | 45,544 | |
Corporate Restructuring [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to March 31, 2016 | 6,601 | |
Total | 6,601 | |
MPI [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 1,501 | 8,594 |
Incurred from inception to March 31, 2016 | 43,215 | |
Estimate of remaining amounts to be incurred | 4,615 | |
Total | 47,830 | |
AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 4,866 | |
Incurred from inception to March 31, 2016 | 5,666 | |
Estimate of remaining amounts to be incurred | 4,136 | |
Total | 9,802 | |
Impairments and write offs [Member] | Americas Restructuring [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to March 31, 2016 | 12,923 | |
Total | 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 | 881 | |
Incurred from inception to March 31, 2016 | 13,981 | |
Total | 13,981 | |
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 | 914 | |
Incurred from inception to March 31, 2016 | 12,557 | |
Total | 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 March 31, 2016 | 158 | |
Total | 158 | |
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 March 31, 2016 | 5,925 | |
Total | 5,925 | |
AEA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 2,336 | 3,047 |
Incurred from inception to March 31, 2016 | 55,218 | |
Estimate of remaining amounts to be incurred | 795 | |
Total | 56,013 | |
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 | 1,252 | |
Incurred from inception to March 31, 2016 | 6,646 | |
Total | 6,646 | |
AEA [Member] | Severance and other personnel-related costs [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 2,186 | |
Incurred from inception to March 31, 2016 | 2,186 | |
Estimate of remaining amounts to be incurred | 795 | |
Total | 2,981 | |
AEA [Member] | Other [Member] | MPI [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to March 31, 2016 | 692 | |
Total | 692 | |
AEA [Member] | Other [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 150 | |
Incurred from inception to March 31, 2016 | 150 | |
Total | 150 | |
MEA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 17 | 607 |
Incurred from inception to March 31, 2016 | 873 | |
Total | 873 | |
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 | 607 | |
Incurred from inception to March 31, 2016 | 856 | |
Total | 856 | |
MEA [Member] | Other [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 17 | |
Incurred from inception to March 31, 2016 | 17 | |
Total | 17 | |
ASA [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 1,328 | 5,968 |
Incurred from inception to March 31, 2016 | 20,837 | |
Estimate of remaining amounts to be incurred | 5,015 | |
Total | 25,852 | |
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 | 433 | 1,800 |
Incurred from inception to March 31, 2016 | 6,537 | |
Estimate of remaining amounts to be incurred | 1,898 | |
Total | 8,435 | |
ASA [Member] | Severance and other personnel-related costs [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Estimate of remaining amounts to be incurred | 400 | |
Total | 400 | |
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 | 895 | |
Incurred from inception to March 31, 2016 | 6,829 | |
Estimate of remaining amounts to be incurred | 2,327 | |
Total | 9,156 | |
ASA [Member] | Asset impairment and disposal [Member] | MPI [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 4,168 | |
Incurred from inception to March 31, 2016 | 7,471 | |
Total | 7,471 | |
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 | 390 | |
Total | 390 | |
Corporate and Other [Member] | MPI [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred from inception to March 31, 2016 | 983 | |
Total | 983 | |
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 | 719 | |
Incurred from inception to March 31, 2016 | 1,611 | |
Total | 1,611 | |
Corporate [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 2,686 | 767 |
Incurred from inception to March 31, 2016 | 24,098 | |
Estimate of remaining amounts to be incurred | 2,941 | |
Total | 27,039 | |
Corporate [Member] | Severance and other personnel-related costs [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 785 | |
Incurred from inception to March 31, 2016 | 785 | |
Estimate of remaining amounts to be incurred | 472 | |
Total | 1,257 | |
Corporate [Member] | Other [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Estimate of remaining amounts to be incurred | 2,469 | |
Total | 2,469 | |
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 | 173 | $ 48 |
Incurred from inception to March 31, 2016 | 11,590 | |
Total | 11,590 | |
Corporate [Member] | Legal and other advisor fees [Member] | AOR [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Incurred for the period | 1,728 | |
Incurred from inception to March 31, 2016 | 2,528 | |
Total | $ 2,528 |
Accounts Receivable - Contract
Accounts Receivable - Contract Receivables (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Retainages | $ 7,587 | $ 17,896 |
Accounts receivable—trade, net | 271,713 | 208,474 |
Contract receivables [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Contracts receivable | 228,929 | 164,898 |
Unbilled | 4,303 | 4,303 |
Less allowances | (14,341) | (14,325) |
Accounts receivable—trade, net | 271,713 | 208,474 |
Contract receivables [Member] | Completed contracts [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Contracts receivable | $ 45,235 | $ 35,702 |
Accounts Receivable - Retainage
Accounts Receivable - Retainages on Contracts (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Retainages expected to be collected within one year | $ 7,587 | $ 17,896 |
Retainages expected to be collected after one year | 160,515 | 155,061 |
Total retainages | $ 168,102 | $ 172,957 |
Contracts in Progress and Adv39
Contracts in Progress and Advance Billings on Contracts - Components of Contracts in Progress and Advance Billings on Contracts (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Contractors [Abstract] | ||
Costs incurred less costs of revenues recognized | $ 119,879 | $ 112,819 |
Revenues recognized less billings to customers | 238,622 | 323,010 |
Contracts in Progress | 358,501 | 435,829 |
Billings to customers less revenues recognized | 106,249 | 265,618 |
Costs incurred less costs of revenue recognized | 32,023 | (100,845) |
Advance Billings on Contracts | $ 138,272 | $ 164,773 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2014 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2016 | Feb. 29, 2016 | Oct. 31, 2015 | Sep. 30, 2010 | |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 18,000,000 | $ 20,000,000 | ||||||
Bonds issued related to JRMSA general agreement of indemnity | 73,000,000 | 54,000,000 | ||||||
Financial Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letter of credit supported by Cash collateral | $ 43,000,000 | 45,000,000 | ||||||
After March 31, 2016 But Before April 16, 2017 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate amount | $ 25,000,000 | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issue of second-lien seven-year senior secured notes | $ 500,000,000 | |||||||
Tangible equity units, aggregate principal amount | 48,000,000 | |||||||
Letter of Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letter of credit, first lien | 400,000,000 | $ 520,000,000 | ||||||
Debt instrument maturity year | 2,017 | |||||||
Debt instrument covenant maximum capital expenditures | 125,000,000 | |||||||
Line of Credit facility maximum amount outstanding | $ 467,000,000 | 384,000,000 | ||||||
Cash collateralize letter of credit permitted to deposit, Amount | 300,000,000 | |||||||
Letter of credit supported by Cash collateral | 100,000,000 | 102,000,000 | ||||||
Letter of Credit Facility [Member] | Middle Eastern Bank [Member] | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Letter of credit, first lien | $ 100,000,000 | |||||||
Letter of Credit Facility [Member] | Financial Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit facility maximum amount outstanding | $ 0 | |||||||
Letter of Credit Facility [Member] | Scenario Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument covenant maximum capital expenditures | $ 250,000,000 | |||||||
Debt instrument covenant maximum capital expenditures thereafter | $ 375,000,000 | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letter of credit, first lien | 300,000,000 | |||||||
Debt instrument maturity year | 2,019 | |||||||
Tangible Equity Units | ||||||||
Debt Instrument [Line Items] | ||||||||
Issue of tangible equity units | $ 288,000,000 | |||||||
North Ocean 105 [Member] | Secured Debt [Member] | North Ocean Construction Financing [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of interest acquired in subsidiary | 75.00% | |||||||
Ownership percentage in Oceanteam ASA's | 25.00% | |||||||
Reimbursement Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Administrative or commitment fees | 0 | |||||||
Bank guarantees issued | $ 28,000,000 | |||||||
Other General Reimbursement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank guarantees issued | $ 101,000,000 | $ 100,000,000 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term borrowing | $ 840,939 | $ 843,883 |
Less: Amounts due within one year | 25,298 | 24,882 |
Long-term debt | 815,641 | 819,001 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowing | 492,306 | 491,890 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowing | 289,771 | 289,979 |
Amortizing Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowing | 18,005 | 21,205 |
Capital lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowing | 2,458 | 2,546 |
North Ocean 105 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowing | $ 38,399 | $ 38,263 |
Pension and Postretirement Be42
Pension and Postretirement Benefits - Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Domestic Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 5,259 | $ 5,382 |
Expected return on plan assets | (5,003) | (6,677) |
Net periodic (benefit) cost | 256 | (1,295) |
TCN Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 338 | 407 |
Expected return on plan assets | (397) | (710) |
Net periodic (benefit) cost | $ (59) | $ (303) |
Derivative Financial Instrume43
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Net gain (loss) on derivative financial instruments | $ (33,473,000) | $ (64,277,000) |
Net deferred losses expected to be reclassified from AOCI over next 12 months | 24,000,000 | |
Notional value of outstanding derivative contracts | $ 536,000,000 | |
Derivative contracts, maturity date | Dec. 31, 2017 | |
Fair value of derivative contracts | $ 3,000,000 | |
EPCI projects [Member] | ||
Derivative [Line Items] | ||
Notional value of outstanding derivative contracts | $ 286,000,000 |
Derivative Financial Instrume44
Derivative Financial Instruments - Derivative Financial Instruments (Detail) - Derivatives Designated as Hedges [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | $ 7,840 | $ 1,883 |
Liability derivatives fair value | 10,410 | 30,667 |
Accounts receivable-other [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | 7,686 | 1,668 |
Accounts payable [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability derivatives fair value | 8,330 | 26,649 |
Other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives fair value | 154 | 215 |
Other liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability derivatives fair value | $ 2,080 | $ 4,018 |
Derivative Financial Instrume45
Derivative Financial Instruments - Effects of Derivative Instruments on Financial Statements (Detail) - Derivatives Designated as Hedges [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of loss recognized in other comprehensive income (loss) | $ 20,534 | $ 36,690 |
Cost of operations [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Income reclassified from AOCI into income: effective portion | 9,679 | 19,854 |
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 | $ (1,205) | $ 1,817 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Outstanding Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Recurring | ||
Forward contracts | $ (3,000) | |
Carrying Amount [Member] | ||
Recurring | ||
Forward contracts | (2,570) | $ (28,784) |
Non-recurring | ||
Cash and cash equivalents | 696,103 | 664,844 |
Restricted cash and cash equivalents | 101,726 | 116,801 |
Debt | (840,939) | (843,883) |
Fair value [Member] | ||
Recurring | ||
Forward contracts | (2,570) | (28,784) |
Non-recurring | ||
Cash and cash equivalents | 696,103 | 664,844 |
Restricted cash and cash equivalents | 101,726 | 116,801 |
Debt | (733,743) | (777,634) |
Level 1 [Member] | ||
Non-recurring | ||
Cash and cash equivalents | 696,103 | 664,844 |
Restricted cash and cash equivalents | 101,726 | 116,801 |
Level 2 [Member] | ||
Recurring | ||
Forward contracts | (2,570) | (28,784) |
Non-recurring | ||
Debt | (667,540) | (707,492) |
Level 3 [Member] | ||
Non-recurring | ||
Debt | $ (66,203) | $ (70,142) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | |
Fair Value Measurement [Abstract] | |||
Non-cash impairment charges | $ 32 | $ 3 | $ 4 |
Property plant and equipment, fair value | $ 14 |
Stockholder's Equity - Changes
Stockholder's Equity - Changes in the Number of Ordinary Shares Outstanding and Treasury Shares Held by the Company (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Ordinary Shares Outstanding [Abstract] | ||
Beginning balance | 239,016,924 | 237,809,823 |
Common stock issued | 1,907,215 | 990,039 |
Purchase of common stock | (569,999) | (300,553) |
Ending balance | 240,354,140 | 238,499,309 |
Ordinary Shares Held as Treasury Shares [Abstract] | ||
Beginning balance | 7,824,204 | 7,400,027 |
Purchase of common stock | 569,999 | 300,553 |
Retirement of common stock | (373,776) | |
Ending balance | 8,020,427 | 7,700,580 |
Ordinary shares issued at the end of the period | 248,374,567 | 246,199,889 |
Stockholder's Equity - Componen
Stockholder's Equity - Components of Accumulated Other Comprehensive Income (Loss) included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders Equity Note [Abstract] | ||||
Foreign currency translation adjustments (“FCTA”) | $ (33,268) | $ (29,925) | ||
Net unrealized gain on investments | 252 | 247 | ||
Net gain (loss) on derivative financial instruments | (33,473) | (64,277) | ||
Accumulated other comprehensive loss | $ (66,489) | $ (93,955) | $ (116,690) | $ (97,808) |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Equity [Abstract] | |
Adjustment decreasing FCTA with an offsetting reduction of Loss on foreign currency, net to correct amounts | $ 7 |
Stockholder's Equity - Compon51
Stockholder's Equity - Components of Accumulated Other Comprehensive Income (Loss) Reclassified (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ (93,955) | $ (97,808) | |
Other comprehensive income (loss) before reclassification | 17,196 | (38,720) | |
Amounts reclassified from AOCI | 10,270 | 19,838 | |
Net current period other comprehensive income (loss) | 27,466 | (18,882) | |
Ending Balance | (66,489) | (116,690) | |
Foreign currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (29,925) | (15,212) | |
Other comprehensive income (loss) before reclassification | (3,343) | (2,042) | |
Net current period other comprehensive income (loss) | (3,343) | (2,042) | |
Ending Balance | (33,268) | (17,254) | |
Unrealized holding gain (loss) on investments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 247 | 241 | |
Other comprehensive income (loss) before reclassification | 5 | 12 | |
Net current period other comprehensive income (loss) | 5 | 12 | |
Ending Balance | 252 | 253 | |
Gain (loss) on derivatives[Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | [1] | (64,277) | (82,837) |
Other comprehensive income (loss) before reclassification | [1] | 20,534 | (36,690) |
Amounts reclassified from AOCI | [1],[2] | 10,270 | 19,838 |
Net current period other comprehensive income (loss) | [1] | 30,804 | (16,852) |
Ending Balance | [1] | $ (33,473) | $ (99,689) |
[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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to McDermott International, Inc. | $ (2,172) | $ (14,507) |
Weighted average common shares (basic) | 239,137,912 | 237,504,719 |
Effect of dilutive securities: | ||
Stock options, restricted stock and restricted stock units | 40,900,000 | 40,900,000 |
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) | 239,137,912 | 237,504,719 |
Net loss attributable to McDermott International, Inc. | ||
Basic: | $ (0.01) | $ (0.06) |
Diluted: | $ (0.01) | $ (0.06) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from earnings per share computation, shares | 7 | 3.3 |
Antidilutive securities included from diluted weighted average shares computation, shares | 40.9 | 40.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Commitments And Contingencies Disclosure [Abstract] | ||
Environmental accruals, Noncurrent | $ 2 | $ 2 |
Liquidated damages liability | $ 10 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Number of operating segments | 3 |
Segment Reporting - Information
Segment Reporting - Information about Operations in Different Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | $ 729,032 | $ 550,463 |
Operating income (loss) | [2] | 35,993 | 13,306 |
Capital expenditures | [3] | 31,900 | 23,972 |
Depreciation and amortization | 20,602 | 25,327 | |
Drydock amortization | 3,940 | 5,272 | |
Operating Segments [Member] | AEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 62,625 | 143,313 |
Operating income (loss) | [2] | (24,921) | 16,257 |
Capital expenditures | [3] | 2,585 | 2,913 |
Depreciation and amortization | 7,143 | 12,823 | |
Drydock amortization | 3,176 | 3,083 | |
Operating Segments [Member] | MEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 270,255 | 153,800 |
Operating income (loss) | [2] | 38,467 | 5,242 |
Capital expenditures | [3] | 2,234 | 10,114 |
Depreciation and amortization | 4,811 | 5,738 | |
Drydock amortization | 535 | 613 | |
Operating Segments [Member] | ASA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 396,152 | 253,350 |
Operating income (loss) | [2] | 25,133 | (7,426) |
Capital expenditures | [3] | 27,008 | 10,824 |
Depreciation and amortization | 6,389 | 3,916 | |
Drydock amortization | 229 | 1,576 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | [2] | (2,686) | (767) |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [3] | 73 | 121 |
Depreciation and amortization | $ 2,259 | $ 2,850 | |
[1] | Intersegment transactions included in revenues were not significant for either of the periods presented. | ||
[2] | The AEA segment’s operating loss for the three months ended March 31, 2016 includes an impairment charge of $32 million related to the Agile vessel. The ASA segment’s operating loss for the three months ended March 31, 2015 includes an impairment charge of $4 million related to the DB101. | ||
[3] | Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended March 31, 2016 exclude $2 million in accrued liabilities related to capital expenditures as of December 31, 2015. Capital expenditures for the three months ended March 31, 2015 include $3 million of cash payments for accrued capital expenditures outstanding as of December 31, 2014. |
Segment Reporting - Informati57
Segment Reporting - Information about Operations in Different Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Non-cash impairment charges | $ 32,000 | $ 3,000 | $ 4,000 | |
Capital expenditures | [1] | 31,900 | 23,972 | |
Accrued Capital Expenditures of 2015 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 2,000 | |||
Accrued Capital Expenditures of 2014 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 3,000 | |||
AEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash impairment charges | $ 32,000 | |||
ASA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash impairment charges | $ 4,000 | |||
[1] | Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended March 31, 2016 exclude $2 million in accrued liabilities related to capital expenditures as of December 31, 2015. Capital expenditures for the three months ended March 31, 2015 include $3 million of cash payments for accrued capital expenditures outstanding as of December 31, 2014. |
Segment Reporting - Informati58
Segment Reporting - Information about Segment Assets by Country (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,371,558 | $ 3,387,076 |
Operating Segments [Member] | AEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 772,111 | 896,822 |
Operating Segments [Member] | MEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 984,296 | 971,170 |
Operating Segments [Member] | ASA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 825,029 | 774,365 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 790,122 | $ 744,719 |