Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 19, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | HELIX ENERGY SOLUTIONS GROUP INC | |
Entity Central Index Key | 866,829 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 112,639,372 | |
Entity Current Reporting Status | Yes | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 492,190 | $ 494,192 |
Accounts receivable: | ||
Trade, net of allowance for uncollectible accounts of $316 and $350, respectively | 59,888 | 76,287 |
Unbilled revenue and other | 16,216 | 20,465 |
Current deferred tax assets | 14,211 | 53,573 |
Income tax receivable | 21,311 | 0 |
Other current assets | 41,465 | 39,518 |
Total current assets | 645,281 | 684,035 |
Property and equipment | 2,565,180 | 2,544,857 |
Less accumulated depreciation | (983,218) | (941,848) |
Property and equipment, net | 1,581,962 | 1,603,009 |
Other assets: | ||
Equity investments | 0 | 26,200 |
Goodwill | 45,107 | 45,107 |
Other assets, net | 42,018 | 41,608 |
Total assets | 2,314,368 | 2,399,959 |
Current liabilities: | ||
Accounts payable | 48,013 | 65,370 |
Accrued liabilities | 71,009 | 71,641 |
Income tax payable | 0 | 2,261 |
Current maturities of long-term debt | 71,786 | 71,640 |
Total current liabilities | 190,808 | 210,912 |
Long-term debt | 638,985 | 677,695 |
Deferred tax liabilities | 166,557 | 180,974 |
Other non-current liabilities | 52,829 | 51,415 |
Total liabilities | 1,049,179 | 1,120,996 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par, 240,000 shares authorized, 112,627 and 106,289 shares issued, respectively | 986,239 | 945,565 |
Retained earnings | 365,805 | 404,299 |
Accumulated other comprehensive loss | (86,855) | (70,901) |
Total shareholders’ equity | 1,265,189 | 1,278,963 |
Total liabilities and shareholders’ equity | $ 2,314,368 | $ 2,399,959 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for uncollectible accounts | $ 316 | $ 350 |
Shareholders’ equity: | ||
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 112,627,000 | 106,289,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net revenues | $ 107,267 | $ 166,016 | $ 198,306 | $ 355,657 |
Cost of sales | 101,609 | 141,808 | 209,578 | 296,502 |
Gross profit (loss) | 5,658 | 24,208 | (11,272) | 59,155 |
Selling, general and administrative expenses | (14,953) | (16,534) | (28,779) | (29,153) |
Income (loss) from operations | (9,295) | 7,674 | (40,051) | 30,002 |
Equity in losses of investments | (121) | (323) | (244) | (302) |
Net interest expense | (7,480) | (5,235) | (18,164) | (9,305) |
Gain on repurchase of long-term debt | 302 | 0 | 302 | 0 |
Other income (expense), net | 1,308 | (5,036) | 3,188 | (6,192) |
Other income – oil and gas | 396 | 899 | 2,968 | 3,825 |
Income (loss) before income taxes | (14,890) | (2,021) | (52,001) | 18,028 |
Income tax provision (benefit) | (4,219) | 614 | (13,507) | 1,021 |
Net income (loss) | $ (10,671) | $ (2,635) | $ (38,494) | $ 17,007 |
Earnings (loss) per share of common stock (in dollars per share) | ||||
Basic | $ (0.10) | $ (0.03) | $ (0.36) | $ 0.16 |
Diluted | $ (0.10) | $ (0.03) | $ (0.36) | $ 0.16 |
Weighted average common shares outstanding (in shares) | ||||
Basic | 107,767 | 105,357 | 106,838 | 105,324 |
Diluted | 107,767 | 105,357 | 106,838 | 105,324 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (10,671) | $ (2,635) | $ (38,494) | $ 17,007 |
Other comprehensive loss, net of tax: | ||||
Unrealized gain (loss) on hedges arising during the period | (2,344) | 3,346 | 1,032 | (8,365) |
Reclassification adjustments for loss on hedges included in net income (loss) | 3,054 | 3,258 | 6,494 | 4,931 |
Income taxes on unrealized (gain) loss on hedges | (236) | (2,311) | (2,553) | 1,202 |
Unrealized gain (loss) on hedges, net of tax | 474 | 4,293 | 4,973 | (2,232) |
Foreign currency translation gain (loss) arising during the period | (21,216) | 2,020 | ||
Reclassification adjustment for translation loss realized upon liquidation | 289 | 0 | ||
Foreign currency translation gain (loss) | (14,641) | 15,889 | (20,927) | 2,020 |
Other comprehensive income (loss), net of tax | (14,167) | 20,182 | (15,954) | (212) |
Comprehensive income (loss) | $ (24,838) | $ 17,547 | $ (54,448) | $ 16,795 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (38,494) | $ 17,007 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 57,239 | 53,528 |
Amortization of debt issuance costs | 5,138 | 2,596 |
Share-based compensation | 2,867 | 3,515 |
Amortization of debt discount | 3,134 | 2,928 |
Deferred income taxes | (10,047) | (2,454) |
Excess tax benefit from share-based compensation | 0 | (86) |
Equity in losses of investments | 244 | 0 |
Gain on repurchase of long-term debt | (302) | 0 |
Unrealized (gain) loss and ineffectiveness on derivative contracts, net | (6,147) | 1,941 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 19,062 | (29,006) |
Other current assets | (3,055) | 11,904 |
Income tax receivable, net of income tax payable | 8,843 | (9,472) |
Accounts payable and accrued liabilities | (7,979) | (35,318) |
Other noncurrent, net | (5,614) | (14,050) |
Net cash provided by operating activities | 24,889 | 3,033 |
Cash flows from investing activities: | ||
Capital expenditures | (57,563) | (232,872) |
Distributions from equity investments, net of earnings | 1,200 | 3,842 |
Proceeds from sale of equity investment | 25,000 | 0 |
Proceeds from sale of assets | 10,887 | 7,500 |
Net cash used in investing activities | (20,476) | (221,530) |
Cash flows from financing activities: | ||
Proceeds from Nordea Q5000 Loan | 0 | 250,000 |
Repayment of Nordea Q5000 Loan | (17,858) | 0 |
Repayment of Term Loan | (15,000) | (7,500) |
Repayment of MARAD Debt | (2,927) | (2,788) |
Repurchase of Convertible Senior Notes due 2032 | (6,480) | 0 |
Debt issuance costs | (1,230) | (1,533) |
Net proceeds from issuance of common stock | 38,773 | 0 |
Repurchase of common stock | (187) | (1,056) |
Excess tax benefit from share-based compensation | 0 | 86 |
Proceeds from issuance of ESPP shares | 600 | 2,512 |
Net cash provided by (used in) financing activities | (4,309) | 239,721 |
Effect of exchange rate changes on cash and cash equivalents | (2,106) | 2,346 |
Net increase (decrease) in cash and cash equivalents | (2,002) | 23,570 |
Cash and cash equivalents: | ||
Balance, beginning of year | 494,192 | 476,492 |
Balance, end of period | $ 492,190 | $ 500,062 |
Basis Of Presentation And New A
Basis Of Presentation And New Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation And New Accounting Standards | Basis of Presentation and New Accounting Standards The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, “Helix” or the “Company”). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements have been prepared pursuant to instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”), and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP and are consistent in all material respects with those applied in our 2015 Annual Report on Form 10-K (“ 2015 Form 10-K”). The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments (which were normal recurring adjustments) that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income (loss), and statements of cash flows, as applicable. The operating results for the three- and six- month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . Our balance sheet as of December 31, 2015 included herein has been derived from the audited balance sheet as of December 31, 2015 included in our 2015 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto included in our 2015 Form 10-K. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU provides a single five-step approach to account for revenue arising from contracts with customers. The ASU requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This revenue standard was originally effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods. In August 2015, the FASB issued ASU No. 2015-14 to defer the effective date of ASU No. 2014-09 by one year to annual reporting periods beginning after December 15, 2017. Adoption as of the original effective date is permitted. In March 2016, the FASB issued ASU No. 2016-08, which amends the guidance to clarify the implementation guidance on principal versus agent considerations (gross versus net revenue presentation). In April 2016, the FASB issued ASU No. 2016-10, which amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, which provides certain narrow-scope improvements and practical expedients to the guidance. The new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a cumulative adjustment. We are currently evaluating our existing revenue recognition policies to determine the types of contracts that are within the scope of this guidance and the impact the adoption of this standard may have on our consolidated financial statements. We have not yet determined if we will apply the full retrospective or the modified retrospective method. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be reported on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU includes an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The subject of this ASU was not previously addressed by ASU No. 2015-03. We adopted this guidance retrospectively in the first quarter of 2016. As a result, we presented $12.0 million of unamortized debt issuance costs that had been included in “Other assets, net” in our consolidated balance sheet as of December 31, 2015 as direct deductions from the carrying amounts of the related debt liabilities. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” This ASU requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. The guidance is effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. This guidance will not affect our statements of operations or statements of cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU amends the existing accounting standards for leases. The amendments are intended to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods. Early adoption is permitted. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. We are currently evaluating the impact these amendments will have on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Company Overview
Company Overview | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Company Overview We are an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. We seek to provide services and methodologies that we believe are critical to developing offshore reservoirs and maximizing production economics. We provide services primarily in deepwater in the U.S. Gulf of Mexico, North Sea, Asia Pacific and West Africa regions, and are expanding our operations offshore Brazil. Our “life of field” services are segregated into three reportable business segments: Well Intervention, Robotics and Production Facilities (Note 11). Our Well Intervention segment includes our vessels and equipment used to perform well intervention services primarily in the U.S. Gulf of Mexico and North Sea regions. Our Well Intervention segment also includes intervention riser systems (“IRSs”), some of which we rent out on a stand-alone basis, and subsea intervention lubricators (“SILs”). Our well intervention vessels include the Q4000 , the Q5000 , the Well Enhancer , the Seawell , the Helix 534 and the Skandi Constructor , which is a chartered vessel. In April 2016, the Q5000 , a newbuild semi-submersible well intervention vessel, commenced operations in the Gulf of Mexico under our five-year contract with BP. The vessel went on contracted rates on May 19, 2016, and we have been notified by BP that they will not take more than the minimum 270 contracted days in 2017. We currently have another semi-submersible well intervention vessel under construction, the Q7000 . We are chartering the Siem Helix 1 and have contracted to charter the Siem Helix 2. These two newbuild monohull vessels are to be used in connection with our contracts to provide well intervention services offshore Brazil. Our Robotics segment includes remotely operated vehicles (“ROVs”), trenchers and ROVDrills designed to complement offshore construction and well intervention services, and currently operates three chartered ROV support vessels following the expiration of the Rem Installer charter on July 12, 2016. Another chartered ROV support vessel, the Grand Canyon III , was delivered by the shipyard to the vessel owner in May 2016. The vessel is currently stacked by the owner and is expected to be in service for us in May 2017. Our Production Facilities segment includes the Helix Producer I vessel ( “HP I” ), a ship-shaped dynamic positioning floating production unit, and the Helix Fast Response System (“HFRS”), which provides certain operators access to our Q4000 and HP I vessels in the event of a well control incident in the Gulf of Mexico. The HP I is currently contracted to process production from the Phoenix field. Our existing contract for service to the Phoenix field has been extended until at least December 31, 2017. The Production Facilities segment also includes our ownership interest in Independence Hub, LLC (“Independence Hub”) and included our former ownership interest in Deepwater Gateway, L.L.C. (“Deepwater Gateway”) that we sold for $25 million in February 2016 (Note 5). In January 2016, we sold our office and warehouse property located in Aberdeen, Scotland for approximately $11 million and entered into a separate agreement with the same party to lease back the facility for a minimum lease term of 15 years with two five -year options to extend the lease at our option. A gain of approximately $7.6 million from the sale of this property is deferred and will be amortized over the 15 -year minimum lease term. |
Details Of Certain Accounts
Details Of Certain Accounts | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details Of Certain Accounts | Details of Certain Accounts Other current assets consist of the following (in thousands): June 30, December 31, Note receivable (1) $ 10,000 $ 10,000 Prepaid insurance 222 5,433 Other prepaids 12,689 10,142 Deferred costs 4,903 609 Spare parts inventory 4,601 4,985 Value added tax receivable 8,774 7,842 Other 276 507 Total other current assets $ 41,465 $ 39,518 (1) Relates to the balance of the promissory note we received in connection with the sale of our former Ingleside spoolbase in January 2014. Interest on the note is payable quarterly at a rate of 6% per annum. Under the terms of the note, the remaining $10 million principal balance is required to be paid on December 31, 2016. Other assets, net consist of the following (in thousands): June 30, December 31, Deferred dry dock expenses, net $ 12,472 $ 19,615 Deferred costs 11,024 — Deferred financing costs, net (1) 4,823 7,863 Charter fee deposit (Note 12) 12,544 12,544 Other 1,155 1,586 Total other assets, net $ 42,018 $ 41,608 (1) Represents unamortized debt issuance costs related to our Revolving Credit Facility (Note 6). Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and related benefits $ 14,671 $ 14,775 Deferred revenue 13,400 12,841 Accrued interest 4,155 4,854 Derivative liability (Note 14) 20,538 23,192 Taxes payable excluding income tax payable 9,988 8,136 Other 8,257 7,843 Total accrued liabilities $ 71,009 $ 71,641 Other non-current liabilities consist of the following (in thousands): June 30, December 31, Loss in excess of equity investment (Note 5) $ 8,315 $ 8,308 Deferred gain on sale of property (Note 2) 6,430 — Deferred revenue 6,333 — Derivative liability (Note 14) 28,276 39,709 Other 3,475 3,398 Total other non-current liabilities $ 52,829 $ 51,415 |
Statement Of Cash Flow Informat
Statement Of Cash Flow Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Statement Of Cash Flow Information | Statement of Cash Flow Information We define cash and cash equivalents as cash and all highly liquid financial instruments with original maturities of three months or less. The following table provides supplemental cash flow information (in thousands): Six Months Ended 2016 2015 Interest paid, net of interest capitalized $ 10,321 $ 3,729 Income taxes paid $ 3,845 $ 13,285 Our non-cash investing activities include accruals for property and equipment capital expenditures. These non-cash investing accruals totaled $12.6 million and $18.7 million as of June 30, 2016 and December 31, 2015 , respectively. |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments We have a 20% ownership interest in Independence Hub, LLC (“Independence Hub”) that we account for using the equity method of accounting. We previously had a 50% ownership interest in Deepwater Gateway, L.L.C., which we sold in February 2016 to a subsidiary of Genesis Energy, L.P., the other owner, for $25 million with no resulting gain or loss. Both equity investments are included in our Production Facilities segment. Independence Hub owns the “Independence Hub” platform located in Mississippi Canyon Block 920 in a water depth of 8,000 feet. Our share of the losses reported by Independence Hub exceeded the carrying amount of our investment by $8.3 million as of June 30, 2016 and December 31, 2015 reflecting our share of Independence Hub’s obligations (primarily its estimated asset retirement obligations to decommission the platform), net of remaining working capital. This liability is reflected in “Other non-current liabilities” in the accompanying condensed consolidated balance sheets. We received the following distributions from our equity method investments (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Deepwater Gateway $ — $ 1,700 $ 1,200 $ 2,700 Independence Hub — 440 — 840 Total $ — $ 2,140 $ 1,200 $ 3,540 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Scheduled maturities of our long-term debt outstanding as of June 30, 2016 are as follows (in thousands): Term Loan 2032 Notes (1) MARAD Debt Nordea Q5000 Loan Total Less than one year $ 30,000 $ — $ 6,072 $ 35,714 $ 71,786 One to two years 30,000 — 6,375 35,715 72,090 Two to three years 180,000 — 6,693 35,714 222,407 Three to four years — — 7,027 107,142 114,169 Four to five years — — 7,378 — 7,378 Over five years — 192,750 52,676 — 245,426 Total debt 240,000 192,750 86,221 214,285 733,256 Current maturities (30,000 ) — (6,072 ) (35,714 ) (71,786 ) Long-term debt, less current maturities 210,000 192,750 80,149 178,571 661,470 Unamortized debt discount (2) — (11,400 ) — — (11,400 ) Unamortized debt issuance costs (3) (1,855 ) (1,036 ) (5,245 ) (2,949 ) (11,085 ) Long-term debt $ 208,145 $ 180,314 $ 74,904 $ 175,622 $ 638,985 (1) Beginning in March 2018, the holders of our Convertible Senior Notes due 2032 may require us to repurchase these notes or we may at our option elect to repurchase these notes. The notes will mature in March 2032 . (2) Our Convertible Senior Notes due 2032 will increase to their face amount through accretion of non-cash interest charges through March 2018. (3) Debt issuance costs are amortized over the life of the applicable debt agreement. Below is a summary of certain components of our indebtedness: Credit Agreement In June 2013, we entered into a credit agreement (the “Credit Agreement”) with a group of lenders pursuant to which we borrowed $300 million under a term loan (the “Term Loan”) and, subject to the terms of the Credit Agreement, may borrow additional amounts (the “Revolving Loans”) and/or obtain letters of credit under a revolving credit facility (the “Revolving Credit Facility”) up to $600 million (reduced to $400 million by the February 2016 amendment to the Credit Agreement, as described below). Pursuant to our Credit Agreement, subject to existing lender participation and/or the participation of new lenders, and subject to standard conditions precedent, we may obtain an increase of up to $200 million in aggregate commitments with respect to the Revolving Credit Facility, additional term loans or a combination thereof. At June 30, 2016 , we had no borrowings under the Revolving Credit Facility and our available borrowing capacity under that facility, based on the leverage ratio covenant, totaled $50.8 million , net of $6.0 million of letters of credit issued. The Term Loan and the Revolving Loans (together, the “Loans”) bear interest, at our election, in relation to either the base rate established by Bank of America N.A. or to a LIBOR rate, provided that all Swing Line Loans (as defined in the Credit Agreement) will be base rate loans. The Loans or portions thereof bearing interest at the base rate currently bear interest at a per annum rate equal to the base rate plus a margin ranging from 1.00% to 3.00% . The Loans or portions thereof bearing interest at a LIBOR rate currently bear interest at the LIBOR rate selected by us plus a margin ranging from 2.00% to 4.00% . A letter of credit fee is payable by us equal to our applicable margin for LIBOR rate Loans multiplied by the daily amount available to be drawn under outstanding letters of credit. Margins on the Loans vary in relation to the consolidated coverage ratio, as provided by the Credit Agreement. We currently also pay a fixed commitment fee of 0.50% on the unused portion of our Revolving Credit Facility. The Term Loan currently bears interest at the one-month LIBOR rate plus 4.00% . In September 2013, we entered into various interest rate swap contracts to fix the one-month LIBOR rate on a portion of our borrowings under the Term Loan (Note 14). The total notional amount of the swaps (initially $148.1 million ) decreases in proportion to the reduction in the principal amount outstanding under our Term Loan. The fixed LIBOR rates are between 74 and 75 basis points. The Term Loan is repayable in scheduled principal installments (currently 10% or $30 million per year), payable quarterly, with a balloon payment of $180 million at maturity. These installment amounts are subject to adjustment for any prepayments on the Term Loan. We may elect to prepay amounts outstanding under the Term Loan without premium or penalty, but may not reborrow any amounts prepaid. We may prepay amounts outstanding under the Revolving Loans without premium or penalty, and may reborrow any amounts paid up to the amount of the Revolving Credit Facility. The Loans mature on June 19, 2018 . In certain circumstances, we will be required to prepay the Loans. The Credit Agreement and the other documents entered into in connection with the Credit Agreement (together, the “Loan Documents”) include terms and conditions, including covenants, that we consider customary for this type of transaction. The covenants include restrictions on our and our subsidiaries’ ability to grant liens, incur indebtedness, make investments, merge or consolidate, sell or transfer assets, pay dividends and incur capital expenditures. In addition, the Credit Agreement obligates us to meet certain financial ratios, including the Consolidated Interest Coverage Ratio and the Consolidated Leverage Ratio (as defined in the Credit Agreement). In January 2016, we amended the Credit Agreement to permit the sale and lease back of certain office and warehouse property located in Aberdeen, Scotland. In February 2016, we amended the Credit Agreement to decrease the lenders’ commitment under the Revolving Credit Facility from $600 million to $400 million . As a result, we recorded a $2.5 million interest charge to accelerate the amortization of debt issuance costs in proportion to the reduced commitment. Also pursuant to the February 2016 amendment to the Credit Agreement: (a) The minimum permitted Consolidated Interest Coverage Ratio was revised as follows: Four Fiscal Quarters Ending Minimum Consolidated Interest Coverage Ratio March 31, 2016 through and including September 30, 2016 2.50 to 1.00 December 31, 2016 through and including March 31, 2017 2.75 to 1.00 June 30, 2017 and each fiscal quarter thereafter 3.00 to 1.00 (b) The maximum permitted Consolidated Leverage Ratio was revised as follows: Four Fiscal Quarters Ending Maximum Consolidated Leverage Ratio March 31, 2016 5.50 to 1.00 June 30, 2016 5.25 to 1.00 September 30, 2016 through and including December 31, 2016 5.00 to 1.00 March 31, 2017 4.75 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 and each fiscal quarter thereafter 3.50 to 1.00 (c) A new financial covenant was established requiring us to maintain a minimum cash balance if our Consolidated Leverage Ratio is 3.50x or greater, as described below. This minimum cash balance is not required to be maintained in any particular bank account or to be segregated from other cash balances in bank accounts that we use in our ordinary course of business. Because the use of this cash is not legally restricted notwithstanding this maintenance covenant, we present it as cash and cash equivalents on our balance sheet. As of June 30, 2016 , we needed to maintain an aggregate cash balance of at least $150 million in order to comply with this covenant. Consolidated Leverage Ratio Minimum Cash Greater than or equal to 4.50x $150,000,000.00 Greater than or equal to 4.00x but less than 4.50x $100,000,000.00 Greater than or equal to 3.50x but less than 4.00x $50,000,000.00 Less than 3.50x $0.00 We have designated five of our foreign subsidiaries, and may designate any newly established foreign subsidiaries, as subsidiaries that are not generally subject to the Credit Agreement’s covenants (the “Unrestricted Subsidiaries”), provided we meet certain liquidity requirements, in which case EBITDA (net of cash distributions to the parent) of the Unrestricted Subsidiaries is not included in the calculations with respect to our financial covenants. Our obligations under the Credit Agreement are guaranteed by our wholly owned domestic subsidiaries (except Cal Dive I – Title XI, Inc.) and Canyon Offshore Limited, a wholly owned Scottish subsidiary. Our obligations under the Credit Agreement, and of the guarantors under their guaranty, are secured by most of our assets of the parent and our wholly owned domestic subsidiaries (except Cal Dive I – Title XI, Inc.) and Canyon Offshore Limited, plus pledges of up to two-thirds of the shares of certain foreign subsidiaries. Convertible Senior Notes Due 2032 In March 2012, we completed a public offering and sale of Convertible Senior Notes in the aggregate principal amount of $200 million due 2032 (the “2032 Notes”). The 2032 Notes bear interest at a rate of 3.25% per annum, and are payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2012. The 2032 Notes mature on March 15, 2032 unless earlier converted, redeemed or repurchased. The 2032 Notes are convertible in certain circumstances and during certain periods at an initial conversion rate of 39.9752 shares of common stock per $1,000 principal amount (which represents an initial conversion price of approximately $25.02 per share of common stock), subject to adjustment in certain circumstances as set forth in the Indenture governing the 2032 Notes. We have the right and the intention to settle any such future conversions in cash. Prior to March 20, 2018, the 2032 Notes are not redeemable. On or after March 20, 2018, we, at our option, may redeem some or all of the 2032 Notes in cash, at any time upon at least 30 days’ notice, at a price equal to 100% of the principal amount plus accrued and unpaid interest (including contingent interest, if any) up to but excluding the redemption date. In addition, the holders of the 2032 Notes may require us to purchase in cash some or all of their 2032 Notes at a repurchase price equal to 100% of the principal amount of the 2032 Notes, plus accrued and unpaid interest (including contingent interest, if any) up to but excluding the applicable repurchase date, on March 15, 2018, March 15, 2022 and March 15, 2027, or, subject to specified exceptions, at any time prior to the 2032 Notes’ maturity following a Fundamental Change (either a Change of Control or a Termination of Trading, as those terms are defined in the Indenture governing the 2032 Notes). In connection with the issuance of the 2032 Notes, we recorded a discount of $35.4 million as required under existing accounting rules. To arrive at this discount amount, we estimated the fair value of the liability component of the 2032 Notes as of the date of their issuance (March 12, 2012) using an income approach. To determine this estimated fair value, we used borrowing rates of similar market transactions involving comparable liabilities at the time of issuance and an expected life of 6.0 years . In selecting the expected life, we selected the earliest date the holders could require us to repurchase all or a portion of the 2032 Notes (March 15, 2018). The effective interest rate for the 2032 Notes is 6.9% after considering the effect of the accretion of the related debt discount that represented the equity component of the 2032 Notes at their inception. We recorded $22.5 million related to the carrying amount of the equity component of the 2032 Notes. The remaining unamortized amount of the debt discount of the 2032 Notes was $11.4 million at June 30, 2016 and $15.0 million at December 31, 2015 . In June 2016, we repurchased $7.3 million in aggregate principal amount of the 2032 Notes for $6.5 million . The purchase price reflects the market price of the notes at the time of purchase. We recognized a total gain of $0.3 million which is presented as “Gain on repurchase of long-term debt” in the accompanying consolidated statements of operations. The gain includes the $0.8 million discount on the 2032 Notes, offset in part by charges totaling $0.5 million for the acceleration of a pro rata portion of unamortized debt discount and debt issuance costs related to the 2032 Notes. MARAD Debt This U.S. government guaranteed financing (the “MARAD Debt”) is pursuant to Title XI of the Merchant Marine Act of 1936 administered by the Maritime Administration, and was used to finance the construction of the Q4000 . The MARAD Debt is payable in equal semi-annual installments beginning in August 2002 and matures in February 2027 . The MARAD Debt is collateralized by the Q4000 , is guaranteed 50% by us, and initially bore interest at a floating rate that approximated AAA Commercial Paper yields plus 20 basis points. As required by the MARAD Debt agreements, in September 2005, we fixed the interest rate on the debt through the issuance of a 4.93% fixed-rate note with the same maturity date. Nordea Credit Agreement In September 2014, a wholly owned subsidiary incorporated in Luxembourg, Helix Q5000 Holdings S.à r.l. (“Q5000 Holdings”), entered into a credit agreement (the “Nordea Credit Agreement”) with a syndicated bank lending group for a term loan (the “Nordea Q5000 Loan”) in an amount of up to $250 million . The Nordea Q5000 Loan was funded in the amount of $250 million in April 2015 at the time the Q5000 vessel was delivered to us. The parent company of Q5000 Holdings, Helix Vessel Finance S.à r.l., also a wholly owned Luxembourg subsidiary, guaranteed the Nordea Q5000 Loan. The loan is secured by the Q5000 and its charter earnings as well as by a pledge of the shares of Q5000 Holdings. This indebtedness is non-recourse to Helix. The Nordea Q5000 Loan bears interest at a LIBOR rate plus a margin of 2.5% , with an undrawn fee of 0.875% prior to funding on April 30, 2015. The Nordea Q5000 Loan matures on April 30, 2020 and is repayable in scheduled quarterly principal installments of $8.9 million with a balloon payment of $80.4 million at maturity. Q5000 Holdings may elect to prepay amounts outstanding under the Nordea Q5000 Loan without premium or penalty, but may not reborrow any amounts prepaid. Installment amounts are subject to adjustment for any prepayments on this debt. In certain circumstances, Q5000 Holdings will be required to prepay the loan. In June 2015, we entered into various interest rate swap contracts to fix the one-month LIBOR rate on a portion of our borrowings under the Nordea Q5000 Loan (Note 14). The total notional amount of the swaps (initially $187.5 million ) decreases in proportion to the reduction in the principal amount outstanding under our Nordea Q5000 Loan. The fixed LIBOR rates are between 149 and 152 basis points. The Nordea Credit Agreement and related loan documents include terms and conditions, including covenants, that are considered customary for this type of transaction. The covenants include restrictions on Q5000 Holdings’s ability to grant liens, incur indebtedness, make investments, merge or consolidate, sell or transfer assets, and pay dividends. In addition, the Nordea Credit Agreement obligates Q5000 Holdings to meet certain minimum financial requirements, including liquidity, consolidated debt service coverage and collateral maintenance. Other In accordance with our Credit Agreement, the 2032 Notes, the MARAD Debt agreements, and the Nordea Credit Agreement, we are required to comply with certain covenants, including certain financial ratios such as a consolidated interest coverage ratio and a consolidated leverage ratio, as well as the maintenance of minimum net worth, working capital and debt-to-equity requirements. As of June 30, 2016 , we were in compliance with these covenants. The following table details the components of our net interest expense (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Interest expense $ 10,435 $ 9,751 $ 23,479 $ 18,160 Interest income (436 ) (457 ) (880 ) (1,107 ) Capitalized interest (2,519 ) (4,059 ) (4,435 ) (7,748 ) Net interest expense $ 7,480 $ 5,235 $ 18,164 $ 9,305 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our estimated annual effective tax rate, adjusted for discrete tax items, is applied to interim periods’ pretax earnings. We believe that our recorded deferred tax assets and liabilities are reasonable. However, tax laws and regulations are subject to interpretation and tax litigation is inherently uncertain, and therefore our assessments can involve a series of complex judgments about future events and rely heavily on estimates and assumptions. The effective tax rates for the three- and six- month periods ended June 30, 2016 were 28.3% and 26.0% , respectively. The effective tax rates for the three- and six- month periods ended June 30, 2015 were (30.4)% and 5.7% , respectively. The variance was primarily attributable to the earnings mix between our higher and lower tax rate jurisdictions. Income taxes are provided based on the U.S. statutory rate of 35% and at the local statutory rate for each foreign jurisdiction adjusted for items that are allowed as deductions for federal and foreign income tax reporting purposes, but not for book purposes. The primary differences between the U.S. statutory rate and our effective rate are as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 U.S. statutory rate 35.0 % 35.0 % 35.0 % 35.0 % Foreign provision (8.3 ) (54.6 ) (9.3 ) (31.5 ) Other 1.6 (10.8 ) 0.3 2.2 Effective rate 28.3 % (30.4 )% 26.0 % 5.7 % |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity On April 25, 2016, we launched an at-the-market (“ATM”) offering program and executed an Equity Distribution Agreement with Wells Fargo Securities, LLC (“Wells Fargo”) to sell up to $50 million of our common stock through Wells Fargo. As of June 30, 2016 , we sold a total of 5,081,339 shares of our common stock under the ATM program for $40.5 million , or an average of $7.98 per share, and received proceeds of $38.8 million , net of transaction costs, including commissions of $1.0 million that were paid to Wells Fargo. The components of Accumulated Other Comprehensive Income (Loss) (“OCI”) are as follows (in thousands): June 30, December 31, Cumulative foreign currency translation adjustment $ (63,937 ) $ (43,010 ) Unrealized loss on hedges, net (1) (22,918 ) (27,891 ) Accumulated other comprehensive loss $ (86,855 ) $ (70,901 ) (1) Amounts relate to foreign currency hedges for the Grand Canyon , Grand Canyon II and Grand Canyon III charters as well as interest rate swap contracts for the Term Loan and the Nordea Q5000 Loan, and are net of deferred income taxes totaling $12.5 million at June 30, 2016 and $15.1 million at December 31, 2015 (Note 14). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We have shares of restricted stock issued and outstanding that currently are unvested. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding unrestricted common stock and the shares of restricted stock are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share (“EPS”) amounts under the two class method in periods in which we have earnings from continuing operations. The presentation of basic EPS amounts on the face of the accompanying condensed consolidated statements of operations is computed by dividing the net income applicable to our common shareholders by the weighted average shares of our outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. The computations of the numerator (income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended Income Shares Income Shares Basic: Net loss $ (10,671 ) $ (2,635 ) Less: Undistributed earnings allocated to participating securities — — Undistributed loss allocated to common shares $ (10,671 ) 107,767 $ (2,635 ) 105,357 Diluted: Undistributed loss allocated to common shares $ (10,671 ) 107,767 $ (2,635 ) 105,357 Effect of dilutive securities: Share-based awards other than participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Net loss $ (10,671 ) 107,767 $ (2,635 ) 105,357 Six Months Ended Six Months Ended Income Shares Income Shares Basic: Net income (loss) $ (38,494 ) $ 17,007 Less undistributed earnings allocated to participating securities — (96 ) Undistributed earnings (loss) allocated to common shares $ (38,494 ) 106,838 $ 16,911 105,324 Diluted: Undistributed earnings (loss) allocated to common shares $ (38,494 ) 106,838 $ 16,911 105,324 Effect of dilutive securities: Share-based awards other than participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Net income (loss) $ (38,494 ) 106,838 $ 16,911 105,324 We had a net loss for the three- and six- month periods ended June 30, 2016 . Accordingly, our diluted EPS calculation for the three- and six- month periods ended June 30, 2016 was equivalent to our basic EPS calculation since diluted EPS excluded any assumed exercise or conversion of common stock equivalents. These common stock equivalents were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. Shares that otherwise would have been included in the diluted per share calculation assuming we had earnings are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2016 Diluted shares (as reported) 107,767 106,838 Share-based awards 377 187 Total 108,144 107,025 In addition, the following potentially dilutive shares related to the 2032 Notes were excluded from the diluted EPS calculation because we have the right and the intention to settle any such future conversions in cash (Note 6) (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 2032 Notes 7,959 7,995 7,977 7,995 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Long-Term Incentive Stock-Based Plan As of June 30, 2016 , there were 3.8 million shares of our common stock available for issuance under our active long-term incentive stock-based plan, the 2005 Long-Term Incentive Plan, as amended and restated (the “2005 Incentive Plan”). During the six -month period ended June 30, 2016 , the following grants of share-based awards were made under the 2005 Incentive Plan: Date of Grant Shares Grant Date Fair Value Per Share Vesting Period January 4, 2016 (1) 1,143,062 $ 5.26 33% per year over three years January 4, 2016 (2) 1,143,062 $ 7.13 100% on January 3, 2019 January 4, 2016 (3) 11,763 $ 5.26 100% on January 1, 2018 February 1, 2016 (1) 18,610 $ 4.03 33% per year over three years February 1, 2016 (2) 18,610 $ 7.13 100% on January 31, 2019 April 1, 2016 (3) 13,727 $ 5.60 100% on January 1, 2018 (1) Reflects the grant of restricted stock to our executive officers and select management employees. (2) Reflects the grant of performance share units (“PSUs”) to our executive officers and select management employees. The PSUs provide for an award based on the performance of our common stock over a three -year period with the maximum amount of the award being 200% of the original awarded PSUs and the minimum amount being zero . The vested PSUs may be settled in either cash or shares of our common stock at the discretion of the Compensation Committee of our Board of Directors (the “Board”). (3) Reflects the grant of restricted stock to certain members of our Board who have made an election to take their quarterly fees in stock in lieu of cash. Compensation cost for restricted stock is the product of grant date fair value of each share and the number of shares granted and is recognized over the applicable vesting period on a straight-line basis. For the three- and six- month periods ended June 30, 2016 , $1.4 million and $2.9 million , respectively, were recognized as share-based compensation related to restricted stock. For the three- and six- month periods ended June 30, 2015 , $1.5 million and $2.9 million , respectively, were recognized as share-based compensation related to restricted stock. The estimated fair value of the PSUs is determined using a Monte Carlo simulation model. Compensation cost for PSUs that are accounted for as equity awards is measured based on the estimated grant date fair value and recognized over the vesting period on a straight-line basis. PSUs that are accounted for as liability awards are measured based on the estimated fair value at the balance sheet date and changes in fair value of the awards are recognized in earnings. Cumulative compensation cost for vested liability PSU awards equals the actual cash payout amount upon vesting. In January 2015, in connection with the vesting of the 2012 PSU awards, a decision was made by the Compensation Committee of our Board to settle these PSUs in cash (rather than with an equivalent number of shares of our common stock, which was the default payment method for PSU awards). Accordingly, PSUs, including those that were previously accounted for as equity awards, are treated as liability awards. To the extent the recognized fair value of the modified liability awards is less than the compensation cost associated with the grant date fair value of the original equity awards at the end of a reporting period, the higher amount is recorded as share-based compensation. The amount of cumulative compensation expense recognized in excess of the fair value of the modified liability awards is recorded in equity. For the three- and six- month periods ended June 30, 2016 , $1.7 million and $2.8 million , respectively, were recognized as share-based compensation related to PSUs. For the three -month period ended June 30, 2015 , $0.2 million was recognized as share-based compensation related to PSUs. For the six -month period ended June 30, 2015 , we recorded a net reduction of $0.9 million of previously recognized compensation cost to reflect the estimated fair value of unvested PSUs as of June 30, 2015 . The equity balance at June 30, 2016 and December 31, 2015 included $3.1 million and $2.9 million , respectively, reflecting the cumulative compensation expense recognized in excess of the estimated fair value of the modified liability PSU awards at the respective balance sheet dates. The liability balance for unvested PSUs was $3.0 million at June 30, 2016 and $0.7 million at December 31, 2015 . We paid $0.2 million in cash to settle the 2013 grant of PSUs when they vested in January 2016. Long-Term Incentive Cash Plans We have certain long-term incentive cash plans (the “LTI Cash Plans”) that provide long-term cash-based compensation to eligible employees. Cash awards are indexed to our common stock with the payment amount at each vesting date, if any, determined by the performance of our common stock. Payment amounts under these awards are calculated based on the ratio of the average stock price during the applicable measurement period over the original base price determined by the Compensation Committee of our Board at the time of the award. Cash awards have a vesting period of three years and payments under these awards are made each year during the vesting period on the anniversary date of the award. The LTI Cash Plans are considered liability plans and as such are re-measured to fair value each reporting period with corresponding changes in the liability amount being reflected in our results of operations. No long-term incentive cash awards were granted in 2015 or 2016. Compensation expense for the three- and six- month periods ended June 30, 2016 was immaterial. For the three- and six- month periods ended June 30, 2015 , we recorded reductions of $0.6 million and $2.5 million , respectively, of previously recognized compensation expense associated with the cash awards issued pursuant to the LTI Cash Plans, reflecting the effect that decreases in our stock price had on the value of our liability plan. The liability balance for the cash awards issued under the LTI Cash Plans was less than $0.1 million at June 30, 2016 and December 31, 2015 . Employee Stock Purchase Plan We also have an employee stock purchase plan (the “ESPP”). The ESPP has 1.5 million shares authorized for issuance, of which 0.7 million shares were available for issuance as of June 30, 2016 . In February 2016, we suspended ESPP purchases for the January through April 2016 purchase period and a purchase limit of 130 shares per employee was imposed for subsequent purchase periods. Share-based compensation with respect to the ESPP was less than $0.1 million for the three- and six- month periods ended June 30, 2016 and $0.3 million and $0.6 million for the three- and six- month periods ended June 30, 2015 . For more information regarding our employee benefit plans, including our long-term incentive stock-based and cash plans and our employee stock purchase plan, see Note 12 to our 2015 Form 10-K. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We have three reportable business segments: Well Intervention, Robotics and Production Facilities. Our U.S., U.K. and Brazil well intervention operating segments are aggregated into the Well Intervention business segment for financial reporting purposes. Our Well Intervention segment includes our vessels and equipment used to perform well intervention services primarily in the U.S. Gulf of Mexico and North Sea regions. Our well intervention vessels include the Q4000 , the Q5000 , the Helix 534 , the Seawell , the Well Enhancer and the Skandi Constructor , which is a chartered vessel. Our well intervention segment also includes IRSs, some of which we rent out on a stand-alone basis, and SILs. Our Robotics segment includes ROVs, trenchers and ROVDrills designed to complement offshore construction and well intervention services, and currently operates three chartered ROV support vessels. Our Production Facilities segment includes the HP I , the HFRS and our investment in Independence Hub that is accounted for under the equity method, and included our former ownership interest in Deepwater Gateway that we sold in February 2016 (Note 5). All material intercompany transactions between the segments have been eliminated. We evaluate our performance primarily based on operating income of each reportable segment. Segment assets are comprised of all assets attributable to each reportable segment. Corporate and other includes all assets not directly identifiable with our business segments. Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net revenues — Well Intervention $ 59,919 $ 85,675 $ 105,975 $ 189,726 Robotics 38,914 75,101 70,908 155,272 Production Facilities 18,957 20,293 37,439 38,678 Intercompany elimination (10,523 ) (15,053 ) (16,016 ) (28,019 ) Total $ 107,267 $ 166,016 $ 198,306 $ 355,657 Income (loss) from operations — Well Intervention $ (538 ) $ 4,135 $ (17,226 ) $ 18,929 Robotics (8,823 ) 4,303 (21,573 ) 13,760 Production Facilities 9,730 8,444 16,913 13,022 Corporate and other (9,827 ) (9,009 ) (18,496 ) (15,616 ) Intercompany elimination 163 (199 ) 331 (93 ) Total $ (9,295 ) $ 7,674 $ (40,051 ) $ 30,002 Intercompany segment amounts are derived primarily from equipment and services provided to other business segments at rates consistent with those charged to third parties. Intercompany segment revenues are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Well Intervention $ 2,201 $ 6,417 $ 2,842 $ 11,363 Robotics 8,322 8,636 13,174 16,656 Total $ 10,523 $ 15,053 $ 16,016 $ 28,019 The following table reflects total assets by reportable segment (in thousands): June 30, December 31, Well Intervention $ 1,475,066 $ 1,484,109 Robotics 240,393 274,926 Production Facilities 158,999 182,007 Corporate and other 439,910 458,917 Total $ 2,314,368 $ 2,399,959 |
Commitments And Contingencies A
Commitments And Contingencies And Other Matters | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies And Other Matters | Commitments and Contingencies and Other Matters Commitments We have charter agreements for the Grand Canyon , Grand Canyon II and Grand Canyon III vessels for use in our robotics operations. Pursuant to the charter amendments in February 2016, in connection with charter rate reductions for the vessels, the term of the vessel charters was revised such that the Grand Canyon charter expires in October 2019, the Grand Canyon II charter expires in April 2021 and the Grand Canyon III charter expires in May 2023. We also have a charter agreement for the Deep Cygnus which expires in March 2018. In September 2013, we executed a contract with the same shipyard in Singapore that constructed the Q5000 . This contract is for the construction of a newbuild semi-submersible well intervention vessel, the Q7000 , which is being built to North Sea standards. This $346.0 million shipyard contract represents the majority of the expected costs associated with the construction of the Q7000 . Pursuant to the original terms of this contract, 20% of the contract price was paid upon the signing of the contract. Pursuant to the first contract amendment we entered into in June 2015, we agreed to pay the shipyard incremental costs of up to $14.5 million to extend the scheduled delivery of the Q7000 from mid-2016 to July 30, 2017 and to defer certain payment obligations. We paid $7.3 million of these costs in July 2015 and the remaining costs were to be paid upon the delivery of the vessel. Pursuant to the second contract amendment we entered into in December 2015, the remaining 80% will be paid in three installments, with 20% in June 2016 (which will be paid in the second half of 2016), 20% upon issuance of the Completion Certificate, which is to be issued on or before December 31, 2017, and 40% upon the delivery of the vessel, which at our option can be deferred until December 30, 2018. Also pursuant to this second amendment, we agreed to reimburse the shipyard for incremental costs in connection with the further deferment of the Q7000 ’s delivery. Incremental costs are capitalized as they are incurred during the construction of the vessel. At June 30, 2016 , our total investment in the Q7000 was $117.4 million , including the $69.2 million paid to the shipyard upon signing the contract. In February 2014, we entered into agreements with Petróleo Brasileiro S.A. (“Petrobras”) to provide well intervention services offshore Brazil, and in connection with the Petrobras agreements, we entered into charter agreements with Siem Offshore AS for two newbuild monohull vessels, the Siem Helix 1 and the Siem Helix 2 . The initial term of the agreements with Petrobras is for four years with options to extend. As part of Petrobras’s efforts to reduce its costs structure with many of its suppliers, we had been in discussions with Petrobras since mid-2015 with respect to potentially amending our contracts in a manner that addressed Petrobras’s objectives and was acceptable to us as well. Those negotiations were finalized in early June 2016 such that the contracts for the Siem Helix 1 , originally scheduled to begin no later than July 22, 2016, were amended to commence between July 22, 2016 and October 21, 2016, with the day rate reduced to a mutually acceptable level, and the contracts for the Siem Helix 2 , originally scheduled to begin no later than January 21, 2017, were amended to commence between October 1, 2017 and December 31, 2017, with no change in the day rate. In early April 2016, a small localized fire occurred on the Siem Helix 1 while it was being constructed for the vessel owner at the shipyard. In our estimation, the repairs to the damage caused by this fire will result in approximately a one -month delay in the vessel being in Brazil, but does not alter our estimate that the Siem Helix 1 will be in service for Petrobras in the fourth quarter of 2016. The Siem Helix 1 vessel was delivered to us and the charter term began on June 14, 2016. We are currently integrating and commissioning our topside equipment onboard the vessel. The Siem Helix 2 is under construction for the owner at the same shipyard that built the Siem Helix 1 , and we anticipate that the vessel will be available for work in the second quarter of 2017 prior to commencing services for Petrobras in the fourth quarter of 2017. At June 30, 2016 , our total investment in the topside equipment for the two vessels was $157.6 million . In November 2014, we paid a charter fee deposit of $12.5 million , which will be used to reduce our final charter payments for the Siem Helix 2 . Contingencies and Claims We believe that there are currently no contingencies which would have a material adverse effect on our financial position, results of operations or cash flows. Litigation On July 31, 2015, a purported stockholder, Parviz Izadjoo, filed a class action lawsuit styled Parviz Izadjoo v. Owen Kratz and Helix Energy Solutions Group, Inc. against the Company and Mr. Kratz, our President and Chief Executive Officer, in the United States District Court for the Southern District of Texas on behalf of a putative class of all purchasers of shares of our common stock between October 21, 2014, and July 21, 2015, inclusive (the “Class Period”). The lawsuit asserts violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and SEC Rule 10b-5 as to both us and Mr. Kratz, and Section 20(a) of the Exchange Act against Mr. Kratz, based on alleged misrepresentations and omissions in SEC filings and other public disclosures regarding projections for 2015 dry docks of two of our vessels working in the Gulf of Mexico that allegedly caused the price at which putative class members bought stock during the proposed class period to be artificially inflated. On January 28, 2016, the judge in the case approved a motion for the appointment of lead plaintiff and lead counsel. On March 14, 2016, the plaintiffs filed an amended class action complaint, adding Mr. Tripodo (our Executive Vice President and Chief Financial Officer) and Mr. Chamblee (our former Executive Vice President and Chief Operating Officer) as individual defendants, alleging the same types of claims made in the original complaint (alleged violations during the Class Period of Section 10(b) of the Exchange Act and SEC Rule 10b-5 with respect to all defendants, and Section 20(a) of the Exchange Act against the individual defendants), but asserting that the alleged misrepresentations and omissions in SEC filings and other public disclosures are related to the condition of and repairs to certain equipment aboard the Q4000 vessel. The defendants filed a motion to dismiss on April 28, 2016 and the parties have completed briefing on that motion. We believe this lawsuit to be without merit and intend to vigorously defend against it. We are involved in various other legal proceedings, some involving claims for personal injury under the General Maritime Laws of the United States and the Jones Act based on alleged negligence. In addition, from time to time we incur other claims, such as contract disputes, in the normal course of business. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value accounting rules establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1. Observable inputs such as quoted prices in active markets; • Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3. Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of three valuation techniques as follows: (a) Market Approach. Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. (b) Cost Approach. Amount that would be required to replace the service capacity of an asset (replacement cost). (c) Income Approach. Techniques to convert expected future cash flows to a single present amount based on market expectations (including present value techniques, option-pricing and excess earnings models). Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, long-term debt and various derivative instruments. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value due to the short-term nature of these instruments. The following tables provide additional information relating to other financial instruments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Level 1 Level 2 (1) Level 3 Total Valuation Technique Liabilities: Foreign exchange contracts $ — $ 45,286 $ — $ 45,286 (c) Interest rate swaps — 3,528 — 3,528 (c) Total liability $ — $ 48,814 $ — $ 48,814 Fair Value Measurements at Level 1 Level 2 (1) Level 3 Total Valuation Technique Assets: Interest rate swaps $ — $ 413 $ — $ 413 (c) Liabilities: Foreign exchange contracts — 61,427 — 61,427 (c) Interest rate swaps — 1,473 — 1,473 (c) Total net liability $ — $ 62,487 $ — $ 62,487 (1) Unless otherwise indicated, the fair value of our Level 2 derivative instruments reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation and market volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. See Note 14 for further discussions on the fair value of our derivative instruments. The carrying values and estimated fair values of our long-term debt are as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Value (1) Fair Value (2) Carrying Value (1) Fair Value (2) Term Loan (matures June 2018) $ 240,000 $ 237,300 $ 255,000 $ 248,467 Nordea Q5000 Loan (matures April 2020) 214,285 207,724 232,143 221,553 MARAD Debt (matures February 2027) 86,221 98,233 89,148 104,897 2032 Notes (mature March 2032) 192,750 169,620 200,000 150,250 Total debt $ 733,256 $ 712,877 $ 776,291 $ 725,167 (1) Carrying value includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2032 Notes was determined using Level 1 inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was determined using a third party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | Derivative Instruments and Hedging Activities Our business is exposed to market risks associated with interest rates and foreign currency exchange rates. Our risk management activities involve the use of derivative financial instruments to hedge the impact of market risk exposure related to variable interest rates and foreign currency exchange rates. To reduce the impact of these risks on earnings and increase the predictability of our cash flows, from time to time we enter into certain derivative contracts, including interest rate swaps and foreign currency exchange contracts. All derivatives are reflected in the accompanying condensed consolidated balance sheets at fair value. We engage solely in cash flow hedges. Hedges of cash flow exposure are entered into to hedge a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. Changes in the fair value of derivatives that are designated as cash flow hedges are deferred to the extent that the hedges are effective. These fair value changes are recorded as a component of Accumulated OCI (a component of shareholders’ equity) until the hedged transactions occur and are recognized in earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized immediately in earnings. In addition, any change in the fair value of a derivative that does not qualify for hedge accounting is recorded in earnings in the period in which the change occurs. For additional information regarding our accounting for derivatives, see Notes 2 and 18 to our 2015 Form 10-K. Interest Rate Risk From time to time, we enter into interest rate swaps to stabilize cash flows related to our long-term variable interest rate debt. In September 2013, we entered into various interest rate swap contracts to fix the interest rate on $148.1 million of our Term Loan borrowings (Note 6). These contracts, which are settled monthly, began in October 2013 and extend through October 2016. Additionally, in June 2015 we entered into various interest rate swap contracts to fix the interest rate on $187.5 million of our Nordea Q5000 Loan borrowings (Note 6). These swap contracts, which are settled monthly, began in June 2015 and extend through April 2020. Our interest rate swap contracts qualify for cash flow hedge accounting treatment. Changes in the fair value of interest rate swaps are deferred to the extent the swaps are effective. These changes are recorded as a component of Accumulated OCI until the anticipated interest is recognized as interest expense. The ineffective portion of the interest rate swaps, if any, is recognized immediately in earnings within the line titled “Net interest expense.” The amount of ineffectiveness associated with our interest rate swap contracts was immaterial for all periods presented. Foreign Currency Exchange Rate Risk Because we operate in various regions around the world, we conduct a portion of our business in currencies other than the U.S. dollar. We enter into foreign currency exchange contracts from time to time to stabilize expected cash outflows related to our vessel charters that are denominated in foreign currencies. In January 2013, we entered into foreign currency exchange contracts to hedge through September 2017 the foreign currency exposure associated with the Grand Canyon charter payments ( $104.6 million ) denominated in Norwegian kroner (NOK 591.3 million ). In February 2013, we entered into similar foreign currency exchange contracts to hedge our foreign currency exposure with respect to the Grand Canyon II and Grand Canyon III charter payments ( $100.4 million and $98.8 million , respectively) denominated in Norwegian kroner (NOK 594.7 million and NOK 595.0 million , respectively), through July 2019 and February 2020, respectively. During discussions with the owner of the Grand Canyon , Grand Canyon II and Grand Canyon III vessels with respect to amending the charter agreements, it became apparent in December 2015 that a portion of previously forecasted charter payments in NOK would no longer be made. We concluded that the foreign currency exchange contracts associated with the charter payments for the Grand Canyon still qualified for cash flow hedge accounting treatment. However, the foreign currency exchange contracts associated with the charter payments for the Grand Canyon II and the Grand Canyon III vessels no longer qualified as cash flow hedges. As a result, we de-designated these hedges and re-designated the hedging relationship between a portion of our foreign currency exchange contracts and our forecasted Grand Canyon II and Grand Canyon III charter payments of NOK 434.1 million and NOK 185.2 million , respectively, that were expected to remain highly probable of occurring. Unrealized losses associated with the effective portion of the re-designated foreign currency exchange contracts that qualify for hedge accounting treatment are included in our Accumulated OCI (net of tax). Changes in unrealized losses associated with the ineffective portion of the re-designated foreign currency exchange contracts are reflected in “Other income (expense), net” in the accompanying condensed consolidated statement of operations. “Other income (expense), net” also includes changes in unrealized losses associated with the foreign currency exchange contracts that are no longer designated as cash flow hedges. Quantitative Disclosures Relating to Derivative Instruments The following table presents the balance sheet location and fair value of our derivative instruments that were designated as hedging instruments (in thousands): June 30, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Asset Derivatives: Interest rate swaps Other assets, net $ — Other assets, net $ 413 $ — $ 413 Liability Derivatives: Foreign exchange contracts Accrued liabilities $ 14,337 Accrued liabilities $ 14,955 Interest rate swaps Accrued liabilities 1,629 Accrued liabilities 1,473 Foreign exchange contracts Other non-current liabilities 18,254 Other non-current liabilities 28,458 Interest rate swaps Other non-current liabilities 1,899 Other non-current liabilities — $ 36,119 $ 44,886 The following table presents the fair value and balance sheet classification of our derivative instruments that were not designated as hedging instruments (in thousands): June 30, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Liability Derivatives: Foreign exchange contracts Accrued liabilities $ 4,572 Accrued liabilities $ 6,763 Foreign exchange contracts Other non-current liabilities 8,123 Other non-current liabilities 11,251 $ 12,695 $ 18,014 For the three- and six- month periods ended June 30, 2016 , we recorded unrealized gains of $0.5 million and $0.1 million , respectively, related to the Grand Canyon and Grand Canyon III hedge ineffectiveness. For the three- and six- month periods ended June 30, 2015 , we recorded unrealized gains of $0.2 million and unrealized losses of $3.2 million , respectively, related to the Grand Canyon III hedge ineffectiveness. We also recorded realized losses of $0.2 million related to the Grand Canyon II hedge ineffectiveness during the first quarter of 2015. The following tables present the impact that derivative instruments designated as hedging instruments had on our Accumulated OCI (net of tax) and our condensed consolidated statements of operations (in thousands). We estimate that as of June 30, 2016 , $9.8 million of losses in Accumulated OCI associated with our derivatives is expected to be reclassified into earnings within the next 12 months. Gain (Loss) Recognized in OCI on Derivatives, Net of Tax (Effective Portion) Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts $ 674 $ 5,002 $ 6,496 $ (1,359 ) Interest rate swaps (200 ) (709 ) (1,523 ) (873 ) $ 474 $ 4,293 $ 4,973 $ (2,232 ) Location of Loss Reclassified from Accumulated OCI into Earnings Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts Cost of sales $ (2,507 ) $ (2,921 ) $ (5,370 ) $ (4,395 ) Interest rate swaps Net interest expense (547 ) (337 ) (1,124 ) (536 ) $ (3,054 ) $ (3,258 ) $ (6,494 ) $ (4,931 ) The following table presents the impact that derivative instruments not designated as hedging instruments had on our condensed consolidated statement of operations (in thousands): Location of Gain (Loss) Recognized in Earnings on Derivatives Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts Other income (expense), net $ (465 ) $ — $ 2,066 $ — $ (465 ) $ — $ 2,066 $ — |
Basis Of Presentation And New21
Basis Of Presentation And New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, “Helix” or the “Company”). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements have been prepared pursuant to instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”), and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP and are consistent in all material respects with those applied in our 2015 Annual Report on Form 10-K (“ 2015 Form 10-K”). The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments (which were normal recurring adjustments) that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive income (loss), and statements of cash flows, as applicable. The operating results for the three- and six- month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . Our balance sheet as of December 31, 2015 included herein has been derived from the audited balance sheet as of December 31, 2015 included in our 2015 Form 10-K. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto included in our 2015 Form 10-K. |
Reclassifications | Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. |
New Accounting Standards | In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU provides a single five-step approach to account for revenue arising from contracts with customers. The ASU requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This revenue standard was originally effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods. In August 2015, the FASB issued ASU No. 2015-14 to defer the effective date of ASU No. 2014-09 by one year to annual reporting periods beginning after December 15, 2017. Adoption as of the original effective date is permitted. In March 2016, the FASB issued ASU No. 2016-08, which amends the guidance to clarify the implementation guidance on principal versus agent considerations (gross versus net revenue presentation). In April 2016, the FASB issued ASU No. 2016-10, which amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, which provides certain narrow-scope improvements and practical expedients to the guidance. The new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a cumulative adjustment. We are currently evaluating our existing revenue recognition policies to determine the types of contracts that are within the scope of this guidance and the impact the adoption of this standard may have on our consolidated financial statements. We have not yet determined if we will apply the full retrospective or the modified retrospective method. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be reported on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU includes an SEC staff announcement that the SEC staff will not object to an entity presenting the cost of securing a revolving line of credit as an asset, regardless of whether a balance is outstanding. The subject of this ASU was not previously addressed by ASU No. 2015-03. We adopted this guidance retrospectively in the first quarter of 2016. As a result, we presented $12.0 million of unamortized debt issuance costs that had been included in “Other assets, net” in our consolidated balance sheet as of December 31, 2015 as direct deductions from the carrying amounts of the related debt liabilities. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” This ASU requires companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this guidance. The guidance is effective prospectively for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. This guidance will not affect our statements of operations or statements of cash flows. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU amends the existing accounting standards for leases. The amendments are intended to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods. Early adoption is permitted. The guidance is required to be adopted at the earliest period presented using a modified retrospective approach. We are currently evaluating the impact these amendments will have on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods. Early adoption is permitted. An entity that elects early adoption of the amendment under this ASU must adopt all aspects of the amendment in the same period. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Details Of Certain Accounts (Ta
Details Of Certain Accounts (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of other current assets | Other current assets consist of the following (in thousands): June 30, December 31, Note receivable (1) $ 10,000 $ 10,000 Prepaid insurance 222 5,433 Other prepaids 12,689 10,142 Deferred costs 4,903 609 Spare parts inventory 4,601 4,985 Value added tax receivable 8,774 7,842 Other 276 507 Total other current assets $ 41,465 $ 39,518 (1) Relates to the balance of the promissory note we received in connection with the sale of our former Ingleside spoolbase in January 2014. Interest on the note is payable quarterly at a rate of 6% per annum. Under the terms of the note, the remaining $10 million principal balance is required to be paid on December 31, 2016. |
Schedule of other assets, net | Other assets, net consist of the following (in thousands): June 30, December 31, Deferred dry dock expenses, net $ 12,472 $ 19,615 Deferred costs 11,024 — Deferred financing costs, net (1) 4,823 7,863 Charter fee deposit (Note 12) 12,544 12,544 Other 1,155 1,586 Total other assets, net $ 42,018 $ 41,608 (1) Represents unamortized debt issuance costs related to our Revolving Credit Facility (Note 6). |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): June 30, December 31, Accrued payroll and related benefits $ 14,671 $ 14,775 Deferred revenue 13,400 12,841 Accrued interest 4,155 4,854 Derivative liability (Note 14) 20,538 23,192 Taxes payable excluding income tax payable 9,988 8,136 Other 8,257 7,843 Total accrued liabilities $ 71,009 $ 71,641 |
Schedule of other non-current liabilities | Other non-current liabilities consist of the following (in thousands): June 30, December 31, Loss in excess of equity investment (Note 5) $ 8,315 $ 8,308 Deferred gain on sale of property (Note 2) 6,430 — Deferred revenue 6,333 — Derivative liability (Note 14) 28,276 39,709 Other 3,475 3,398 Total other non-current liabilities $ 52,829 $ 51,415 |
Statement Of Cash Flow Inform23
Statement Of Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | The following table provides supplemental cash flow information (in thousands): Six Months Ended 2016 2015 Interest paid, net of interest capitalized $ 10,321 $ 3,729 Income taxes paid $ 3,845 $ 13,285 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of distributions from equity method investments | We received the following distributions from our equity method investments (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Deepwater Gateway $ — $ 1,700 $ 1,200 $ 2,700 Independence Hub — 440 — 840 Total $ — $ 2,140 $ 1,200 $ 3,540 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Scheduled maturities of long-term debt outstanding | Scheduled maturities of our long-term debt outstanding as of June 30, 2016 are as follows (in thousands): Term Loan 2032 Notes (1) MARAD Debt Nordea Q5000 Loan Total Less than one year $ 30,000 $ — $ 6,072 $ 35,714 $ 71,786 One to two years 30,000 — 6,375 35,715 72,090 Two to three years 180,000 — 6,693 35,714 222,407 Three to four years — — 7,027 107,142 114,169 Four to five years — — 7,378 — 7,378 Over five years — 192,750 52,676 — 245,426 Total debt 240,000 192,750 86,221 214,285 733,256 Current maturities (30,000 ) — (6,072 ) (35,714 ) (71,786 ) Long-term debt, less current maturities 210,000 192,750 80,149 178,571 661,470 Unamortized debt discount (2) — (11,400 ) — — (11,400 ) Unamortized debt issuance costs (3) (1,855 ) (1,036 ) (5,245 ) (2,949 ) (11,085 ) Long-term debt $ 208,145 $ 180,314 $ 74,904 $ 175,622 $ 638,985 (1) Beginning in March 2018, the holders of our Convertible Senior Notes due 2032 may require us to repurchase these notes or we may at our option elect to repurchase these notes. The notes will mature in March 2032 . (2) Our Convertible Senior Notes due 2032 will increase to their face amount through accretion of non-cash interest charges through March 2018. (3) Debt issuance costs are amortized over the life of the applicable debt agreement. |
Schedule of long-term debt | Also pursuant to the February 2016 amendment to the Credit Agreement: (a) The minimum permitted Consolidated Interest Coverage Ratio was revised as follows: Four Fiscal Quarters Ending Minimum Consolidated Interest Coverage Ratio March 31, 2016 through and including September 30, 2016 2.50 to 1.00 December 31, 2016 through and including March 31, 2017 2.75 to 1.00 June 30, 2017 and each fiscal quarter thereafter 3.00 to 1.00 (b) The maximum permitted Consolidated Leverage Ratio was revised as follows: Four Fiscal Quarters Ending Maximum Consolidated Leverage Ratio March 31, 2016 5.50 to 1.00 June 30, 2016 5.25 to 1.00 September 30, 2016 through and including December 31, 2016 5.00 to 1.00 March 31, 2017 4.75 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 and each fiscal quarter thereafter 3.50 to 1.00 (c) A new financial covenant was established requiring us to maintain a minimum cash balance if our Consolidated Leverage Ratio is 3.50x or greater, as described below. This minimum cash balance is not required to be maintained in any particular bank account or to be segregated from other cash balances in bank accounts that we use in our ordinary course of business. Because the use of this cash is not legally restricted notwithstanding this maintenance covenant, we present it as cash and cash equivalents on our balance sheet. As of June 30, 2016 , we needed to maintain an aggregate cash balance of at least $150 million in order to comply with this covenant. Consolidated Leverage Ratio Minimum Cash Greater than or equal to 4.50x $150,000,000.00 Greater than or equal to 4.00x but less than 4.50x $100,000,000.00 Greater than or equal to 3.50x but less than 4.00x $50,000,000.00 Less than 3.50x $0.00 |
Components of net interest expense | The following table details the components of our net interest expense (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Interest expense $ 10,435 $ 9,751 $ 23,479 $ 18,160 Interest income (436 ) (457 ) (880 ) (1,107 ) Capitalized interest (2,519 ) (4,059 ) (4,435 ) (7,748 ) Net interest expense $ 7,480 $ 5,235 $ 18,164 $ 9,305 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between U.S. statutory rate and effective rate | The primary differences between the U.S. statutory rate and our effective rate are as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 U.S. statutory rate 35.0 % 35.0 % 35.0 % 35.0 % Foreign provision (8.3 ) (54.6 ) (9.3 ) (31.5 ) Other 1.6 (10.8 ) 0.3 2.2 Effective rate 28.3 % (30.4 )% 26.0 % 5.7 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Components of Accumulated OCI | The components of Accumulated Other Comprehensive Income (Loss) (“OCI”) are as follows (in thousands): June 30, December 31, Cumulative foreign currency translation adjustment $ (63,937 ) $ (43,010 ) Unrealized loss on hedges, net (1) (22,918 ) (27,891 ) Accumulated other comprehensive loss $ (86,855 ) $ (70,901 ) (1) Amounts relate to foreign currency hedges for the Grand Canyon , Grand Canyon II and Grand Canyon III charters as well as interest rate swap contracts for the Term Loan and the Nordea Q5000 Loan, and are net of deferred income taxes totaling $12.5 million at June 30, 2016 and $15.1 million at December 31, 2015 (Note 14). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computations of basic and diluted EPS | The computations of the numerator (income) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended Income Shares Income Shares Basic: Net loss $ (10,671 ) $ (2,635 ) Less: Undistributed earnings allocated to participating securities — — Undistributed loss allocated to common shares $ (10,671 ) 107,767 $ (2,635 ) 105,357 Diluted: Undistributed loss allocated to common shares $ (10,671 ) 107,767 $ (2,635 ) 105,357 Effect of dilutive securities: Share-based awards other than participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Net loss $ (10,671 ) 107,767 $ (2,635 ) 105,357 Six Months Ended Six Months Ended Income Shares Income Shares Basic: Net income (loss) $ (38,494 ) $ 17,007 Less undistributed earnings allocated to participating securities — (96 ) Undistributed earnings (loss) allocated to common shares $ (38,494 ) 106,838 $ 16,911 105,324 Diluted: Undistributed earnings (loss) allocated to common shares $ (38,494 ) 106,838 $ 16,911 105,324 Effect of dilutive securities: Share-based awards other than participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Net income (loss) $ (38,494 ) 106,838 $ 16,911 105,324 |
Schedule of shares excluded from diluted per share calculation | Shares that otherwise would have been included in the diluted per share calculation assuming we had earnings are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2016 Diluted shares (as reported) 107,767 106,838 Share-based awards 377 187 Total 108,144 107,025 In addition, the following potentially dilutive shares related to the 2032 Notes were excluded from the diluted EPS calculation because we have the right and the intention to settle any such future conversions in cash (Note 6) (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 2032 Notes 7,959 7,995 7,977 7,995 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based awards granted | During the six -month period ended June 30, 2016 , the following grants of share-based awards were made under the 2005 Incentive Plan: Date of Grant Shares Grant Date Fair Value Per Share Vesting Period January 4, 2016 (1) 1,143,062 $ 5.26 33% per year over three years January 4, 2016 (2) 1,143,062 $ 7.13 100% on January 3, 2019 January 4, 2016 (3) 11,763 $ 5.26 100% on January 1, 2018 February 1, 2016 (1) 18,610 $ 4.03 33% per year over three years February 1, 2016 (2) 18,610 $ 7.13 100% on January 31, 2019 April 1, 2016 (3) 13,727 $ 5.60 100% on January 1, 2018 (1) Reflects the grant of restricted stock to our executive officers and select management employees. (2) Reflects the grant of performance share units (“PSUs”) to our executive officers and select management employees. The PSUs provide for an award based on the performance of our common stock over a three -year period with the maximum amount of the award being 200% of the original awarded PSUs and the minimum amount being zero . The vested PSUs may be settled in either cash or shares of our common stock at the discretion of the Compensation Committee of our Board of Directors (the “Board”). (3) Reflects the grant of restricted stock to certain members of our Board who have made an election to take their quarterly fees in stock in lieu of cash. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of financial data by reportable segment | Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net revenues — Well Intervention $ 59,919 $ 85,675 $ 105,975 $ 189,726 Robotics 38,914 75,101 70,908 155,272 Production Facilities 18,957 20,293 37,439 38,678 Intercompany elimination (10,523 ) (15,053 ) (16,016 ) (28,019 ) Total $ 107,267 $ 166,016 $ 198,306 $ 355,657 Income (loss) from operations — Well Intervention $ (538 ) $ 4,135 $ (17,226 ) $ 18,929 Robotics (8,823 ) 4,303 (21,573 ) 13,760 Production Facilities 9,730 8,444 16,913 13,022 Corporate and other (9,827 ) (9,009 ) (18,496 ) (15,616 ) Intercompany elimination 163 (199 ) 331 (93 ) Total $ (9,295 ) $ 7,674 $ (40,051 ) $ 30,002 |
Summary of intercompany segment revenues | Intercompany segment revenues are as follows (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Well Intervention $ 2,201 $ 6,417 $ 2,842 $ 11,363 Robotics 8,322 8,636 13,174 16,656 Total $ 10,523 $ 15,053 $ 16,016 $ 28,019 |
Schedule of total assets by reportable segment | The following table reflects total assets by reportable segment (in thousands): June 30, December 31, Well Intervention $ 1,475,066 $ 1,484,109 Robotics 240,393 274,926 Production Facilities 158,999 182,007 Corporate and other 439,910 458,917 Total $ 2,314,368 $ 2,399,959 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of other financial instruments measured at fair value on a recurring basis | The following tables provide additional information relating to other financial instruments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Level 1 Level 2 (1) Level 3 Total Valuation Technique Liabilities: Foreign exchange contracts $ — $ 45,286 $ — $ 45,286 (c) Interest rate swaps — 3,528 — 3,528 (c) Total liability $ — $ 48,814 $ — $ 48,814 Fair Value Measurements at Level 1 Level 2 (1) Level 3 Total Valuation Technique Assets: Interest rate swaps $ — $ 413 $ — $ 413 (c) Liabilities: Foreign exchange contracts — 61,427 — 61,427 (c) Interest rate swaps — 1,473 — 1,473 (c) Total net liability $ — $ 62,487 $ — $ 62,487 (1) Unless otherwise indicated, the fair value of our Level 2 derivative instruments reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation and market volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. See Note 14 for further discussions on the fair value of our derivative instruments. |
Schedule of carrying values and estimated fair values of long-term debt | The carrying values and estimated fair values of our long-term debt are as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Value (1) Fair Value (2) Carrying Value (1) Fair Value (2) Term Loan (matures June 2018) $ 240,000 $ 237,300 $ 255,000 $ 248,467 Nordea Q5000 Loan (matures April 2020) 214,285 207,724 232,143 221,553 MARAD Debt (matures February 2027) 86,221 98,233 89,148 104,897 2032 Notes (mature March 2032) 192,750 169,620 200,000 150,250 Total debt $ 733,256 $ 712,877 $ 776,291 $ 725,167 (1) Carrying value includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2032 Notes was determined using Level 1 inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was determined using a third party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. |
Derivative Instruments And He32
Derivative Instruments And Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of balance sheet location and fair value of derivative instruments designated as hedging instruments | The following table presents the balance sheet location and fair value of our derivative instruments that were designated as hedging instruments (in thousands): June 30, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Asset Derivatives: Interest rate swaps Other assets, net $ — Other assets, net $ 413 $ — $ 413 Liability Derivatives: Foreign exchange contracts Accrued liabilities $ 14,337 Accrued liabilities $ 14,955 Interest rate swaps Accrued liabilities 1,629 Accrued liabilities 1,473 Foreign exchange contracts Other non-current liabilities 18,254 Other non-current liabilities 28,458 Interest rate swaps Other non-current liabilities 1,899 Other non-current liabilities — $ 36,119 $ 44,886 |
Schedule of balance sheet location and fair value of derivative instruments not designated as hedging instruments | The following table presents the fair value and balance sheet classification of our derivative instruments that were not designated as hedging instruments (in thousands): June 30, 2016 December 31, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Liability Derivatives: Foreign exchange contracts Accrued liabilities $ 4,572 Accrued liabilities $ 6,763 Foreign exchange contracts Other non-current liabilities 8,123 Other non-current liabilities 11,251 $ 12,695 $ 18,014 |
Schedule of impact of derivative instruments designated as hedging instruments on Accumulated OCI | The following tables present the impact that derivative instruments designated as hedging instruments had on our Accumulated OCI (net of tax) and our condensed consolidated statements of operations (in thousands). We estimate that as of June 30, 2016 , $9.8 million of losses in Accumulated OCI associated with our derivatives is expected to be reclassified into earnings within the next 12 months. Gain (Loss) Recognized in OCI on Derivatives, Net of Tax (Effective Portion) Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts $ 674 $ 5,002 $ 6,496 $ (1,359 ) Interest rate swaps (200 ) (709 ) (1,523 ) (873 ) $ 474 $ 4,293 $ 4,973 $ (2,232 ) |
Schedule of loss reclassified from Accumulated OCI into Earnings | Location of Loss Reclassified from Accumulated OCI into Earnings Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts Cost of sales $ (2,507 ) $ (2,921 ) $ (5,370 ) $ (4,395 ) Interest rate swaps Net interest expense (547 ) (337 ) (1,124 ) (536 ) $ (3,054 ) $ (3,258 ) $ (6,494 ) $ (4,931 ) The following tables present the impact that derivative instruments designated as hedging instruments had on our Accumulated OCI (net of tax) and our condensed consolidated statements of operations (in thousands). We estimate that as of June 30, 2016 , $9.8 million of losses in Accumulated OCI associated with our derivatives is expected to be reclassified into earnings within the next 12 months. |
Schedule of impact of derivative instruments not designated as hedging instruments on consolidated statement of operations | The following table presents the impact that derivative instruments not designated as hedging instruments had on our condensed consolidated statement of operations (in thousands): Location of Gain (Loss) Recognized in Earnings on Derivatives Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended Six Months Ended 2016 2015 2016 2015 Foreign exchange contracts Other income (expense), net $ (465 ) $ — $ 2,066 $ — $ (465 ) $ — $ 2,066 $ — |
Basis Of Presentation And New33
Basis Of Presentation And New Accounting Standards - Basis of Presentation and New Accounting Standards (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 11,085 | |
Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 12,000 |
Company Overview (Details)
Company Overview (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 29, 2016USD ($) | Jan. 31, 2016USD ($)renewal_option | Feb. 28, 2014vessel | Jun. 30, 2016USD ($)segmentvessel | Jun. 30, 2015USD ($) | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Sale of ownership interest for cash | $ 25,000 | $ 0 | ||||
Scotland | ||||||
Segment Reporting Information [Line Items] | ||||||
Proceeds from sale of property | $ 11,000 | |||||
Term of agreement | 15 years | |||||
Number of renewal options | renewal_option | 2 | |||||
Term of renewal option | 5 years | |||||
Gain from sale of property | $ 7,600 | |||||
Deepwater Gateway, L.L.C. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sale of ownership interest for cash | $ 25,000 | |||||
Robotics [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of chartered vessels | vessel | 3 | |||||
Q5000 [Member] | Forecast [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Minimum contracted vessel days | 270 days | |||||
Monohull Vessels [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of chartered vessels | vessel | 2 | |||||
Monohull Vessels [Member] | Well Intervention [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of chartered vessels | vessel | 2 |
Details Of Certain Accounts - O
Details Of Certain Accounts - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Note receivable | $ 10,000 | $ 10,000 |
Prepaid insurance | 222 | 5,433 |
Other prepaids | 12,689 | 10,142 |
Deferred costs | 4,903 | 609 |
Spare parts inventory | 4,601 | 4,985 |
Value added tax receivable | 8,774 | 7,842 |
Other | 276 | 507 |
Total other current assets | $ 41,465 | $ 39,518 |
Note receivable, interest rate | 6.00% | |
Financing receivable, gross | $ 10,000 |
Details Of Certain Accounts -36
Details Of Certain Accounts - Other Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred dry dock expenses, net | $ 12,472 | $ 19,615 |
Deferred costs | 11,024 | 0 |
Deferred financing costs, net | 4,823 | 7,863 |
Charter fee deposit (Note 12) | 12,544 | 12,544 |
Other | 1,155 | 1,586 |
Total other assets, net | $ 42,018 | $ 41,608 |
Details Of Certain Accounts - A
Details Of Certain Accounts - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and related benefits | $ 14,671 | $ 14,775 |
Deferred revenue | 13,400 | 12,841 |
Accrued interest | 4,155 | 4,854 |
Derivative liability (Note 14) | 20,538 | 23,192 |
Taxes payable excluding income tax payable | 9,988 | 8,136 |
Other | 8,257 | 7,843 |
Total accrued liabilities | $ 71,009 | $ 71,641 |
Details Of Certain Accounts -38
Details Of Certain Accounts - Other Non-current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Loss in excess of equity investment (Note 5) | $ 8,315 | $ 8,308 |
Deferred gain on sale of property (Note 2) | 6,430 | 0 |
Deferred revenue | 6,333 | 0 |
Derivative liability (Note 14) | 28,276 | 39,709 |
Other | 3,475 | 3,398 |
Total other non-current liabilities | $ 52,829 | $ 51,415 |
Statement Of Cash Flow Inform39
Statement Of Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid, net of interest capitalized | $ 10,321 | $ 3,729 |
Income taxes paid | $ 3,845 | $ 13,285 |
Statement Of Cash Flow Inform40
Statement Of Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Non-cash investing accruals | $ 12.6 | $ 18.7 |
Equity Investments - Narrative
Equity Investments - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Feb. 29, 2016USD ($) | Jun. 30, 2016USD ($)ft | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Sale of ownership interest for cash | $ 25,000 | $ 0 | ||
Loss in excess of carrying amount of equity investment | $ (8,315) | $ (8,308) | ||
Deepwater Gateway, L.L.C. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of ownership interest | 50.00% | |||
Sale of ownership interest for cash | $ 25,000 | |||
Independence Hub, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of ownership interest | 20.00% | |||
Water depth | ft | 8,000 | |||
Loss in excess of carrying amount of equity investment | $ (8,300) | $ (8,300) |
Equity Investments - Distributi
Equity Investments - Distributions from Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from equity method investments | $ 0 | $ 2,140 | $ 1,200 | $ 3,540 |
Deepwater Gateway, L.L.C. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from equity method investments | 0 | 1,700 | 1,200 | 2,700 |
Independence Hub, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from equity method investments | $ 0 | $ 440 | $ 0 | $ 840 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Aug. 31, 2002 | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | ||||
Less than one year | $ 71,786 | |||
One to two years | 72,090 | |||
Two to three years | 222,407 | |||
Three to four years | 114,169 | |||
Four to five years | 7,378 | |||
Over five years | 245,426 | |||
Total debt | 733,256 | |||
Current maturities | (71,786) | $ (71,640) | ||
Long-term debt, less current maturities | 661,470 | |||
Unamortized debt discount | (11,400) | |||
Unamortized debt issuance costs | (11,085) | |||
Long-term debt | 638,985 | 677,695 | ||
Term Loan Maturing June 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Less than one year | 30,000 | |||
One to two years | 30,000 | |||
Two to three years | 180,000 | |||
Total debt | 240,000 | 255,000 | ||
Current maturities | (30,000) | |||
Long-term debt, less current maturities | 210,000 | |||
Unamortized debt issuance costs | (1,855) | |||
Long-term debt | 208,145 | |||
Convertible Senior Notes Maturing March 2032 [Member] | ||||
Debt Instrument [Line Items] | ||||
Over five years | 192,750 | |||
Total debt | 192,750 | 200,000 | $ 200,000 | |
Long-term debt, less current maturities | 192,750 | |||
Unamortized debt discount | (11,400) | (15,000) | $ (35,400) | |
Unamortized debt issuance costs | (1,036) | |||
Long-term debt | $ 180,314 | |||
Maturity date | March 2032 | |||
MARAD Debt Maturing February 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Less than one year | $ 6,072 | |||
One to two years | 6,375 | |||
Two to three years | 6,693 | |||
Three to four years | 7,027 | |||
Four to five years | 7,378 | |||
Over five years | 52,676 | |||
Total debt | 86,221 | 89,148 | ||
Current maturities | (6,072) | |||
Long-term debt, less current maturities | 80,149 | |||
Unamortized debt issuance costs | (5,245) | |||
Long-term debt | 74,904 | |||
Maturity date | February 2027 | |||
Nordea Q5000 Loan Maturing April 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Less than one year | 35,714 | |||
One to two years | 35,715 | |||
Two to three years | 35,714 | |||
Three to four years | 107,142 | |||
Total debt | 214,285 | $ 232,143 | ||
Current maturities | (35,714) | |||
Long-term debt, less current maturities | 178,571 | |||
Unamortized debt issuance costs | (2,949) | |||
Long-term debt | $ 175,622 |
Long-Term Debt - Credit Agreeme
Long-Term Debt - Credit Agreement (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2016USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Amortization of debt issuance costs | $ 5,138,000 | $ 2,596,000 | ||||
Number of foreign subsidiaries designated as not subject to Credit Agreement covenants | 5 | |||||
Term Loan Maturing June 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 300,000,000 | |||||
Percentage of scheduled principal installments | 10.00% | |||||
Scheduled principal installments | $ 30,000,000 | |||||
Balloon payment | $ 180,000,000 | $ 180,000,000 | ||||
Maturity date | Jun. 19, 2018 | |||||
Term Loan Maturing June 2018 [Member] | Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 148,100,000 | |||||
Term Loan Maturing June 2018 [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 4.00% | |||||
Term Loan Maturing June 2018 [Member] | Minimum [Member] | Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed LIBOR rate on interest rate swaps (as a percent) | 0.74% | |||||
Term Loan Maturing June 2018 [Member] | Minimum [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||
Term Loan Maturing June 2018 [Member] | Minimum [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||
Term Loan Maturing June 2018 [Member] | Maximum [Member] | Interest Rate Swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Fixed LIBOR rate on interest rate swaps (as a percent) | 0.75% | |||||
Term Loan Maturing June 2018 [Member] | Maximum [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 3.00% | |||||
Term Loan Maturing June 2018 [Member] | Maximum [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 4.00% | |||||
Revolving Credit Facility Maturing June 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 400,000,000 | $ 600,000,000 | ||||
Increase in aggregate commitments (up to) | $ 200,000,000 | |||||
Available borrowing capacity | $ 50,800,000 | 50,800,000 | ||||
Letters of credit issued | $ 6,000,000 | $ 6,000,000 | ||||
Commitment fee percentage | 0.50% | |||||
Amortization of debt issuance costs | $ 2,500,000 |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Consolidated Interest Coverage Ratio (Details) - February 2016 Amendment [Member] - Line of Credit [Member] | Feb. 29, 2016 |
March 31, 2016 through and including September 30, 2016 [Member] | |
Debt Instrument [Line Items] | |
Minimum Consolidated Interest Coverage Ratio | 2.5 |
December 31, 2016 through and including March 31, 2017 [Member] | |
Debt Instrument [Line Items] | |
Minimum Consolidated Interest Coverage Ratio | 2.75 |
June 30, 2017 and each fiscal quarter thereafter [Member] | |
Debt Instrument [Line Items] | |
Minimum Consolidated Interest Coverage Ratio | 3 |
Long-Term Debt - Schedule of 46
Long-Term Debt - Schedule of Consolidated Leverage Ratio (Details) - Line of Credit [Member] - February 2016 Amendment [Member] | Feb. 29, 2016 |
March 31, 2016 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 5.50 |
June 30, 2016 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 5.25 |
September 30, 2016 through and including December 31, 2016 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 5 |
March 31, 2017 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.75 |
June 30, 2017 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 4.25 |
September 30, 2017 [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 3.75 |
December 31, 2017 and each fiscal quarter thereafter [Member] | |
Debt Instrument [Line Items] | |
Maximum Consolidated Leverage Ratio | 3.50 |
Long-Term Debt - Schedule of 47
Long-Term Debt - Schedule of Consolidated Leverage Ratio Cash Balances (Details) - USD ($) | Jun. 30, 2016 | Feb. 29, 2016 |
Debt Instrument [Line Items] | ||
Minimum Cash | $ 150,000,000 | |
Greater than or equal to 4.50x [Member] | February 2016 Amendment [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Minimum Cash | $ 150,000,000 | |
Greater than or equal to 4.00x but less than 4.50x [Member] | February 2016 Amendment [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Minimum Cash | 100,000,000 | |
Greater than or equal to 3.50x but less than 4.00x [Member] | February 2016 Amendment [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Minimum Cash | 50,000,000 | |
Less than 3.50x [Member] | February 2016 Amendment [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Minimum Cash | $ 0 |
Long-Term Debt - Convertible Se
Long-Term Debt - Convertible Senior Notes Dues 2032 (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2012 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||
Carrying amount | $ 733,256 | $ 733,256 | $ 733,256 | ||||
Unamortized debt discount | 11,400 | 11,400 | 11,400 | ||||
Gain on repurchase of long-term debt | 302 | $ 0 | 302 | $ 0 | |||
Convertible Senior Notes Maturing March 2032 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying amount | 192,750 | $ 200,000 | 192,750 | 192,750 | $ 200,000 | ||
Interest rate (as a percent) | 3.25% | ||||||
Frequency of periodic payment | semi-annually | ||||||
Maturity date | Mar. 15, 2032 | ||||||
Initial conversion ratio | 0.0399752 | ||||||
Initial conversion price per share | $ 25.02 | ||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||
Repurchase price as a percentage of principal amount | 100.00% | ||||||
Expected life used to estimate fair value | 6 years | ||||||
Effective interest rate (as a percent) | 6.90% | ||||||
Carrying amount of equity component | $ 22,500 | ||||||
Unamortized debt discount | 11,400 | $ 35,400 | 11,400 | 11,400 | $ 15,000 | ||
Repurchased principal amount | 7,300 | 7,300 | 7,300 | ||||
Repurchase amount | 6,500 | 6,500 | 6,500 | ||||
Gain on repurchase of long-term debt | 300 | ||||||
Repurchase discount | 800 | $ 800 | $ 800 | ||||
Amortization of debt issuance costs and discounts | $ 500 |
Long-Term Debt - MARAD Debt (De
Long-Term Debt - MARAD Debt (Details) - MARAD Debt Maturing February 2027 [Member] | 1 Months Ended | |
Aug. 31, 2002 | Sep. 30, 2005 | |
Debt Instrument [Line Items] | ||
Frequency of periodic payment | semi-annual | |
Maturity date | February 2027 | |
Guarantor obligations (as a percent) | 50.00% | |
Basis spread on variable rate (as a percent) | 0.20% | |
Interest rate (as a percent) | 4.93% |
Long-Term Debt - Nordea Credit
Long-Term Debt - Nordea Credit Agreement (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 8 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 29, 2015 | |
Debt Instrument [Line Items] | |||||
Funded amount | $ 0 | $ 250,000 | |||
Nordea Q5000 Loan Maturing April 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 250,000 | ||||
Funded amount | $ 250,000 | ||||
Commitment fee percentage | 0.875% | ||||
Maturity date | Apr. 30, 2020 | ||||
Scheduled principal installments | $ 8,900 | ||||
Frequency of periodic payment | quarterly | ||||
Balloon payment | $ 80,400 | ||||
Nordea Q5000 Loan Maturing April 2020 [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional amount | $ 187,500 | ||||
Nordea Q5000 Loan Maturing April 2020 [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.50% | ||||
Minimum [Member] | Nordea Q5000 Loan Maturing April 2020 [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed LIBOR rate on interest rate swaps (as a percent) | 1.49% | ||||
Maximum [Member] | Nordea Q5000 Loan Maturing April 2020 [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed LIBOR rate on interest rate swaps (as a percent) | 1.52% |
Long-Term Debt - Net Interest E
Long-Term Debt - Net Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 10,435 | $ 9,751 | $ 23,479 | $ 18,160 |
Interest income | (436) | (457) | (880) | (1,107) |
Capitalized interest | (2,519) | (4,059) | (4,435) | (7,748) |
Net interest expense | $ 7,480 | $ 5,235 | $ 18,164 | $ 9,305 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 28.30% | (30.40%) | 26.00% | 5.70% |
U.S. statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Foreign provision | (8.30%) | (54.60%) | (9.30%) | (31.50%) |
Other | 1.60% | (10.80%) | 0.30% | 2.20% |
Effective rate | 28.30% | (30.40%) | 26.00% | 5.70% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Apr. 25, 2016 | |
Class of Stock [Line Items] | |||
Net proceeds from issuance of common stock | $ 38,773 | $ 0 | |
ATM [Member] | |||
Class of Stock [Line Items] | |||
Maximum value of common stock to be issued | $ 50,000 | ||
Value of common stock issued | 40,500 | ||
Net proceeds from issuance of common stock | 38,800 | ||
Payments for commissions | $ 1,000 | ||
ATM [Member] | Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued | 5,081,339 | ||
Price per share issued | $ 7.98 |
Shareholders' Equity - Componen
Shareholders' Equity - Components Of Accumulated OCI (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Cumulative foreign currency translation adjustment | $ (63,937) | $ (43,010) |
Unrealized loss on hedges, net | (22,918) | (27,891) |
Accumulated other comprehensive loss | (86,855) | (70,901) |
Deferred income taxes | $ 12,500 | $ 15,100 |
Earnings Per Share - Computatio
Earnings Per Share - Computations of Basic and Diluted EPS (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic: | ||||
Net income (loss) | $ (10,671) | $ (2,635) | $ (38,494) | $ 17,007 |
Less undistributed earnings allocated to participating securities | 0 | 0 | 0 | (96) |
Undistributed earnings (loss) allocated to common shares | $ (10,671) | $ (2,635) | $ (38,494) | $ 16,911 |
Weighted average number of shares outstanding, basic | 107,767 | 105,357 | 106,838 | 105,324 |
Diluted: | ||||
Undistributed earnings (loss) allocated to common shares | $ (10,671) | $ (2,635) | $ (38,494) | $ 16,911 |
Share-based awards other than participating securities | $ 0 | $ 0 | $ 0 | $ 0 |
Share-based awards other than participating securities (in shares) | 0 | 0 | 0 | 0 |
Undistributed earnings reallocated to participating securities | $ 0 | $ 0 | $ 0 | $ 0 |
Net income (loss) | $ (10,671) | $ (2,635) | $ (38,494) | $ 16,911 |
Weighted average number of shares outstanding, diluted | 107,767 | 105,357 | 106,838 | 105,324 |
Earnings Per Share - Excluded S
Earnings Per Share - Excluded Securities on Diluted Shares Calculation (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Diluted shares (as reported) | 107,767 | 105,357 | 106,838 | 105,324 |
Total (in shares) | 108,144 | 107,025 | ||
Share-based Awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 377 | 187 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Shares Excluded from Diluted EPS Calculation (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Convertible Senior Notes Maturing March 2032 [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 7,959 | 7,995 | 7,977 | 7,995 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2012 | Jan. 31, 2016 | |
2005 Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuance (in shares) | 3,800,000 | 3,800,000 | ||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $ 1.4 | $ 1.5 | $ 2.9 | $ 2.9 | ||||
Performance Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | 1.7 | 0.2 | 2.8 | |||||
Share-based award liability | 3 | 3 | $ 0.7 | |||||
Cash paid to settle share-based award liability | $ 0.2 | |||||||
Performance Share Units [Member] | Adjustment [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | (0.9) | |||||||
Modified Liability Performance Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cumulative compensation expense in excess of fair value (recorded in equity) | 3.1 | 2.9 | ||||||
LTI Cash Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cash-based award vesting period | 3 years | |||||||
Long-term incentive cash awards granted | 0 | 0 | 0 | |||||
Cash-based award liability | $ 0.1 | $ 0.1 | $ 0.1 | |||||
LTI Cash Awards [Member] | Adjustment [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Reduction of previously recorded compensation expense | (0.6) | (2.5) | ||||||
ESPP [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuance (in shares) | 700,000 | 700,000 | ||||||
Shares authorized for issuance (in shares) | 1,500,000 | 1,500,000 | ||||||
Purchase limit per employee (in shares) | 130 | |||||||
Share-based compensation expense | $ 0.1 | $ 0.3 | $ 0.6 |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-based Awards Granted (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Performance Share Units [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Vesting Period | 3 years |
Maximum [Member] | Performance Share Units [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Award percentage | 200.00% |
Minimum [Member] | Performance Share Units [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Award percentage | 0.00% |
January 4, 2016 - 33% per year over three years [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 4, 2016 |
Shares | shares | 1,143,062 |
Grant Date Fair Value Per Share | $ / shares | $ 5.26 |
Vesting Percentage | 33.00% |
Vesting Period | 3 years |
January 4, 2016 - 100% on January 3, 2019 [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 4, 2016 |
Shares | shares | 1,143,062 |
Grant Date Fair Value Per Share | $ / shares | $ 7.13 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 3, 2019 |
January 4, 2016 - 100% on January 1, 2018 [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Jan. 4, 2016 |
Shares | shares | 11,763 |
Grant Date Fair Value Per Share | $ / shares | $ 5.26 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 1, 2018 |
February 1, 2016 - 33% per year over three years [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Feb. 1, 2016 |
Shares | shares | 18,610 |
Grant Date Fair Value Per Share | $ / shares | $ 4.03 |
Vesting Percentage | 33.00% |
Vesting Period | 3 years |
February 1, 2016 - 100% on January 31, 2019 [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Feb. 1, 2016 |
Shares | shares | 18,610 |
Grant Date Fair Value Per Share | $ / shares | $ 7.13 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 31, 2019 |
April 1, 2016 - 100% on January 1, 2018 [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Date of Grant | Apr. 1, 2016 |
Shares | shares | 13,727 |
Grant Date Fair Value Per Share | $ / shares | $ 5.60 |
Vesting Percentage | 100.00% |
Vesting Date | Jan. 1, 2018 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2016segmentvessel | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Robotics [Member] | |
Segment Reporting Information [Line Items] | |
Number of chartered vessels | vessel | 3 |
Business Segment Information 62
Business Segment Information - Financial Data by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 107,267 | $ 166,016 | $ 198,306 | $ 355,657 |
Income (loss) from operations | (9,295) | 7,674 | (40,051) | 30,002 |
Reportable Segments [Member] | Well Intervention [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 59,919 | 85,675 | 105,975 | 189,726 |
Income (loss) from operations | (538) | 4,135 | (17,226) | 18,929 |
Reportable Segments [Member] | Robotics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 38,914 | 75,101 | 70,908 | 155,272 |
Income (loss) from operations | (8,823) | 4,303 | (21,573) | 13,760 |
Reportable Segments [Member] | Production Facilities [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 18,957 | 20,293 | 37,439 | 38,678 |
Income (loss) from operations | 9,730 | 8,444 | 16,913 | 13,022 |
Intercompany Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (10,523) | (15,053) | (16,016) | (28,019) |
Income (loss) from operations | 163 | (199) | 331 | (93) |
Intercompany Elimination [Member] | Well Intervention [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (2,201) | (6,417) | (2,842) | (11,363) |
Intercompany Elimination [Member] | Robotics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (8,322) | (8,636) | (13,174) | (16,656) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | $ (9,827) | $ (9,009) | $ (18,496) | $ (15,616) |
Business Segment Information 63
Business Segment Information - Summary of Intercompany Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ (107,267) | $ (166,016) | $ (198,306) | $ (355,657) |
Intercompany Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 10,523 | 15,053 | 16,016 | 28,019 |
Intercompany Elimination [Member] | Well Intervention [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,201 | 6,417 | 2,842 | 11,363 |
Intercompany Elimination [Member] | Robotics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 8,322 | $ 8,636 | $ 13,174 | $ 16,656 |
Business Segment Information 64
Business Segment Information - Total Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,314,368 | $ 2,399,959 |
Well Intervention [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,475,066 | 1,484,109 |
Robotics [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 240,393 | 274,926 |
Production Facilities [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 158,999 | 182,007 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 439,910 | $ 458,917 |
Commitments And Contingencies65
Commitments And Contingencies And Other Matters (Narrative) (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Dec. 31, 2015USD ($)payment_installment | Jul. 31, 2015USD ($) | Feb. 28, 2014vessel | Sep. 30, 2013USD ($) | Jun. 30, 2016USD ($) | Nov. 30, 2014USD ($) | |
Commitments And Contingencies [Line Items] | ||||||
Total investment | $ 2,544,857 | $ 2,565,180 | ||||
Charter fee deposit | $ 12,544 | 12,544 | ||||
Q7000 [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Contract amount | $ 346,000 | |||||
Percentage of contract price to be paid | 80.00% | |||||
Number of installments to be paid | payment_installment | 3 | |||||
Total investment | 117,400 | |||||
Q7000 [Member] | Contract Signing [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of contract price to be paid | 20.00% | |||||
Q7000 [Member] | Due June 2016 [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of contract price to be paid | 20.00% | |||||
Q7000 [Member] | Issuance of Completion Certificate [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of contract price to be paid | 20.00% | |||||
Q7000 [Member] | Vessel Delivery [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Percentage of contract price to be paid | 40.00% | |||||
Q7000 [Member] | Capital Addition Purchase Commitments [Member] | Extend Scheduled Delivery [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Total investment | $ 14,500 | |||||
Q7000 [Member] | Capital Addition Purchase Commitments [Member] | Contract Signing [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments of shipyard incremental costs | $ 69,200 | |||||
Q7000 [Member] | Capital Addition Purchase Commitments [Member] | Contract Signing [Member] | Extend Scheduled Delivery [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Payments of shipyard incremental costs | $ 7,300 | |||||
Monohull Vessels [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Term of charter agreement | 4 years | |||||
Number of chartered vessels | vessel | 2 | |||||
Siem Helix 1 [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Delay caused by fire | 1 month | |||||
Topside Equipment [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Total investment | $ 157,600 | |||||
Siem Helix 2 [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Charter fee deposit | $ 12,500 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | $ 48,814 | $ 62,487 |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 413 | |
Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 45,286 | 61,427 |
Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,528 | 1,473 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 0 | 0 |
Level 1 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Level 1 [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 1 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 48,814 | 62,487 |
Level 2 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 413 | |
Level 2 [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 45,286 | 61,427 |
Level 2 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,528 | 1,473 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total net liability | 0 | 0 |
Level 3 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Level 3 [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 733,256 | ||
Term Loan Maturing June 2018 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 240,000 | $ 255,000 | |
Fair Value | 237,300 | 248,467 | |
Nordea Q5000 Loan Maturing April 2020 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 214,285 | 232,143 | |
Fair Value | 207,724 | 221,553 | |
MARAD Debt Maturing February 2027 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 86,221 | 89,148 | |
Fair Value | 98,233 | 104,897 | |
Convertible Senior Notes Maturing March 2032 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 192,750 | 200,000 | $ 200,000 |
Fair Value | 169,620 | 150,250 | |
Loan Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 733,256 | 776,291 | |
Fair Value | $ 712,877 | $ 725,167 |
Derivative Instruments And He68
Derivative Instruments And Hedging Activities - Narrative (Details) NOK in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015NOK | Sep. 30, 2013USD ($) | Feb. 28, 2013NOK | Feb. 28, 2013USD ($) | Jan. 31, 2013NOK | Jan. 31, 2013USD ($) | |
Derivative [Line Items] | ||||||||||
Losses in Accumulated OCI to be re-classified within twelve months | $ 9.8 | |||||||||
Interest Rate Swaps [Member] | Term Loan Maturing June 2018 [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | $ 148.1 | |||||||||
Interest Rate Swaps [Member] | Nordea Q5000 Loan Maturing April 2020 [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | $ 187.5 | $ 187.5 | ||||||||
Grand Canyon [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | NOK 591.3 | $ 104.6 | ||||||||
Grand Canyon II [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | NOK 434.1 | NOK 594.7 | $ 100.4 | |||||||
Grand Canyon I I I [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional amount | NOK 185.2 | NOK 595 | $ 98.8 | |||||||
Foreign Exchange Contracts For Grand Canyon And Grand Canyon III [Member] | Other Income (Expense), Net [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Unrealized gains (losses) on hedge ineffectiveness | $ 0.5 | $ 0.1 | ||||||||
Foreign Exchange Contracts For Grand Canyon II [Member] | Other Income (Expense), Net [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Realized losses on hedge ineffectiveness | 0.2 | |||||||||
Foreign Exchange Contracts For Grand Canyon III [Member] | Other Income (Expense), Net [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Unrealized gains (losses) on hedge ineffectiveness | $ 0.2 | $ (3.2) |
Derivative Instruments And He69
Derivative Instruments And Hedging Activities - Derivative Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives designated as hedging instruments | $ 0 | $ 413 |
Liability derivatives designated as hedging instruments | 36,119 | 44,886 |
Other Assets, Net [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives designated as hedging instruments | 0 | 413 |
Accrued Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives designated as hedging instruments | 1,629 | 1,473 |
Accrued Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives designated as hedging instruments | 14,337 | 14,955 |
Other Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives designated as hedging instruments | 1,899 | 0 |
Other Noncurrent Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives designated as hedging instruments | $ 18,254 | $ 28,458 |
Derivative Instruments And He70
Derivative Instruments And Hedging Activities - Derivative Instruments not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Liability derivatives not designated as hedging instruments | $ 12,695 | $ 18,014 |
Accrued Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives not designated as hedging instruments | 4,572 | 6,763 |
Other Liabilities [Member] | Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives not designated as hedging instruments | $ 8,123 | $ 11,251 |
Derivative Instruments And He71
Derivative Instruments And Hedging Activities - Impact of Derivative Instruments Designated as Hedging Instruments on Accumulated OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivatives, Net of Tax (Effective Portion) | $ 474 | $ 4,293 | $ 4,973 | $ (2,232) |
Foreign Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivatives, Net of Tax (Effective Portion) | 674 | 5,002 | 6,496 | (1,359) |
Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI on Derivatives, Net of Tax (Effective Portion) | $ (200) | $ (709) | $ (1,523) | $ (873) |
Derivative Instruments And He72
Derivative Instruments And Hedging Activities - Loss Reclassified from Accumulated OCI into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) | $ (3,054) | $ (3,258) | $ (6,494) | $ (4,931) |
Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) | (2,507) | (2,921) | (5,370) | (4,395) |
Interest Rate Swaps [Member] | Net Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss Reclassified from Accumulated OCI into Earnings (Effective Portion) | $ (547) | $ (337) | $ (1,124) | $ (536) |
Derivative Instruments And He73
Derivative Instruments And Hedging Activities - Impact of Derivative Instruments Not Designated as Hedging Instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Earnings on Derivatives | $ (465) | $ 0 | $ 2,066 | $ 0 |
Foreign Exchange Contracts [Member] | Other Income (Expense), Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Earnings on Derivatives | $ (465) | $ 0 | $ 2,066 | $ 0 |