2016 Q4 Form 10-Q Financial Statement

#000086682916000089 Filed on October 21, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q4
Revenue $128.0M $161.2M $157.7M
YoY Change -18.8% -11.63% -23.88%
Cost Of Revenue $110.4M $121.1M $137.6M
YoY Change -19.77% -19.56% -21.1%
Gross Profit $17.60M $40.18M -$324.9M
YoY Change -105.42% 25.7% -1090.39%
Gross Profit Margin 13.75% 24.92% -206.05%
Selling, General & Admin $18.40M $18.71M $14.50M
YoY Change 26.9% 37.63% -36.68%
% of Gross Profit 104.52% 46.57%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $29.40M $27.60M $34.10M
YoY Change -13.78% -15.85% 21.79%
% of Gross Profit 167.01% 68.68%
Operating Expenses $18.50M $18.71M $14.50M
YoY Change 27.59% 37.63% -36.4%
Operating Profit -$896.0K $21.47M -$339.4M
YoY Change -99.74% 16.86% -3492.28%
Interest Expense -$10.20M $10.75M -$132.7M
YoY Change -92.31% -1.39% 2664.58%
% of Operating Profit 50.05%
Other Income/Expense, Net $1.900M $830.0K -$17.80M
YoY Change -110.67% -16700.0% -873.91%
Pretax Income -$57.00M $15.11M -$506.2M
YoY Change -88.74% 51.5% -7130.56%
Income Tax -$2.600M $3.649M -$102.3M
% Of Pretax Income 24.15%
Net Earnings -$54.40M $11.46M -$403.9M
YoY Change -86.53% 16.01% -5148.75%
Net Earnings / Revenue -42.49% 7.11% -256.15%
Basic Earnings Per Share -$0.46 $0.10 -$3.83
Diluted Earnings Per Share -$0.46 $0.10 -$3.83
COMMON SHARES
Basic Shares Outstanding 120.6M shares 113.7M shares 106.1M shares
Diluted Shares Outstanding 113.7M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $356.6M $482.1M $494.2M
YoY Change -27.84% 2.82% 3.71%
Cash & Equivalents $356.6M $482.1M $494.2M
Short-Term Investments
Other Short-Term Assets $37.39M $54.06M $39.52M
YoY Change -5.39% 21.49% -22.97%
Inventory $2.500M $4.400M $5.000M
Prepaid Expenses $13.97M
Receivables $101.8M $76.00M $76.29M
Other Receivables $12.20M $5.288M $0.00
Total Short-Term Assets $522.8M $679.0M $684.0M
YoY Change -23.57% -2.5% -1.47%
LONG-TERM ASSETS
Property, Plant & Equipment $1.652B $1.649B $1.603B
YoY Change 3.03% -14.73% -7.63%
Goodwill $0.00 $45.11M $45.11M
YoY Change -100.0% -26.83% -27.42%
Intangibles
YoY Change
Long-Term Investments $0.00 $0.00 $26.20M
YoY Change -100.0% -100.0% -82.49%
Other Assets $72.55M $57.95M $41.61M
YoY Change 74.36% -19.66% -29.8%
Total Long-Term Assets $1.724B $1.753B $1.716B
YoY Change 0.48% -20.76% -14.48%
TOTAL ASSETS
Total Short-Term Assets $522.8M $679.0M $684.0M
Total Long-Term Assets $1.724B $1.753B $1.716B
Total Assets $2.247B $2.432B $2.400B
YoY Change -6.38% -16.38% -11.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $60.21M $127.7M $65.37M
YoY Change -7.89% 68.56% -21.62%
Accrued Expenses $58.61M $69.90M $71.64M
YoY Change -18.18% -11.2% -31.72%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $67.57M $70.91M $71.64M
YoY Change -5.68% -1.03% 154.55%
Total Short-Term Liabilities $186.4M $268.5M $210.9M
YoY Change -11.62% 18.75% -6.52%
LONG-TERM LIABILITIES
Long-Term Debt $558.4M $607.5M $677.7M
YoY Change -17.6% -13.78% 29.52%
Other Long-Term Liabilities $52.99M $44.43M $51.42M
YoY Change 3.05% -4.28% 34.92%
Total Long-Term Liabilities $611.4M $651.9M $729.1M
YoY Change -16.15% -13.19% 29.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $186.4M $268.5M $210.9M
Total Long-Term Liabilities $611.4M $651.9M $729.1M
Total Liabilities $965.1M $1.094B $1.121B
YoY Change -13.9% -11.37% 7.04%
SHAREHOLDERS EQUITY
Retained Earnings $322.9M $377.3M $404.3M
YoY Change -20.14% -53.32% -48.25%
Common Stock $1.056B $1.045B $945.6M
YoY Change 11.67% 10.67% 1.19%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.282B $1.337B $1.279B
YoY Change
Total Liabilities & Shareholders Equity $2.247B $2.432B $2.400B
YoY Change -6.38% -16.38% -11.14%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q4
OPERATING ACTIVITIES
Net Income -$54.40M $11.46M -$403.9M
YoY Change -86.53% 16.01% -5148.75%
Depreciation, Depletion And Amortization $29.40M $27.60M $34.10M
YoY Change -13.78% -15.85% 21.79%
Cash From Operating Activities $23.30M -$9.500M $71.40M
YoY Change -67.37% -126.1% 23.32%
INVESTING ACTIVITIES
Capital Expenditures -$107.1M -$21.80M -$39.80M
YoY Change 169.1% -54.2% -69.94%
Acquisitions
YoY Change
Other Investing Activities $2.300M $0.00 $11.20M
YoY Change -79.46% -100.0% 107.41%
Cash From Investing Activities -$104.8M -$21.80M -$28.50M
YoY Change 267.72% -52.3% -77.56%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -42.70M 21.50M -16.60M
YoY Change 157.23% -216.22% 304.88%
NET CHANGE
Cash From Operating Activities 23.30M -9.500M 71.40M
Cash From Investing Activities -104.8M -21.80M -28.50M
Cash From Financing Activities -42.70M 21.50M -16.60M
Net Change In Cash -124.2M -9.800M 26.30M
YoY Change -572.24% -64.75% -135.93%
FREE CASH FLOW
Cash From Operating Activities $23.30M -$9.500M $71.40M
Capital Expenditures -$107.1M -$21.80M -$39.80M
Free Cash Flow $130.4M $12.30M $111.2M
YoY Change 17.27% -85.36% -41.57%

Facts In Submission

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us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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us-gaap Gain Loss On Repurchase Of Debt Instrument
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us-gaap Gain Loss On Repurchase Of Debt Instrument
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us-gaap Gross Profit
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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us-gaap Income Taxes Paid
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable
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us-gaap Increase Decrease In Other Current Assets
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19164000 USD
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Interest Costs Capitalized Adjustment
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CY2016Q3 us-gaap Interest Costs Capitalized Adjustment
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3069000 USD
us-gaap Interest Costs Capitalized Adjustment
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us-gaap Interest Expense
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InterestExpense
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us-gaap Interest Expense
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34224000 USD
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470000 USD
us-gaap Interest Income Other
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us-gaap Interest Income Other
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us-gaap Interest Paid Net
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Liabilities
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CY2016Q3 us-gaap Liabilities
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CY2016Q3 us-gaap Liabilities And Stockholders Equity
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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us-gaap Net Income Loss
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us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2016Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Number Of Reportable Segments
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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0 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
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us-gaap Other Nonoperating Income Expense
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us-gaap Payments To Acquire Productive Assets
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1760000 USD
us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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5300000 USD
CY2016Q3 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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0 USD
us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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1200000 USD
us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Secured Debt
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us-gaap Proceeds From Sale Of Equity Method Investments
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0 USD
us-gaap Proceeds From Sale Of Equity Method Investments
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25000000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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us-gaap Proceeds From Stock Plans
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us-gaap Proceeds From Stock Plans
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us-gaap Repayments Of Convertible Debt
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us-gaap Repayments Of Convertible Debt
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us-gaap Repayments Of Secured Debt
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CY2016Q3 us-gaap Selling General And Administrative Expense
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us-gaap Selling General And Administrative Expense
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CY2015Q4 us-gaap Stockholders Equity
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us-gaap Undistributed Earnings
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CY2016Q3 us-gaap Undistributed Earnings
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52000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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149000 USD
CY2016Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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160000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
0 USD
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UndistributedEarningsLossAllocatedToParticipatingSecuritiesDiluted
0 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
UndistributedEarningsLossAllocatedToParticipatingSecuritiesDiluted
0 USD
CY2016Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
UndistributedEarningsLossAllocatedToParticipatingSecuritiesDiluted
0 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Diluted
UndistributedEarningsLossAllocatedToParticipatingSecuritiesDiluted
0 USD
us-gaap Unrealized Gain Loss On Derivatives
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us-gaap Unrealized Gain Loss On Derivatives
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9282000 USD
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
105362000 shares
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
113680000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
109135000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
105438000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
105362000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
113680000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
109135000 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Company Overview</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 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 &#8220;life of field&#8221; services are segregated into </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> reportable business segments: Well Intervention, Robotics and Production Facilities (Note&#160;11).</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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 (&#8220;IRSs&#8221;), some of which we rent out on a stand-alone basis, and subsea intervention lubricators (&#8220;SILs&#8221;). Our well intervention vessels include the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Q4000</font><font style="font-family:Arial;font-size:10pt;">, the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Q5000</font><font style="font-family:Arial;font-size:10pt;">, the</font><font style="font-family:Arial;font-size:10pt;font-style:italic;"> Well Enhancer</font><font style="font-family:Arial;font-size:10pt;">, the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Seawell</font><font style="font-family:Arial;font-size:10pt;">, the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Helix 534</font><font style="font-family:Arial;font-size:10pt;"> and the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Skandi Constructor</font><font style="font-family:Arial;font-size:10pt;">, which is a chartered vessel. The </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Q5000</font><font style="font-family:Arial;font-size:10pt;"> vessel went on contracted rates on May&#160;19, 2016 under our </font><font style="font-family:Arial;font-size:10pt;">five</font><font style="font-family:Arial;font-size:10pt;">-year contract with BP; we have been notified by BP that they will not take more than the minimum </font><font style="font-family:Arial;font-size:10pt;">270</font><font style="font-family:Arial;font-size:10pt;"> contracted days in 2017. We currently have another semi-submersible well intervention vessel under construction, the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Q7000</font><font style="font-family:Arial;font-size:10pt;">. We are chartering the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Siem Helix 1</font><font style="font-family:Arial;font-size:10pt;"> and have contracted to charter the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Siem Helix 2.</font><font style="font-family:Arial;font-size:10pt;"> These </font><font style="font-family:Arial;font-size:10pt;">two</font><font style="font-family:Arial;font-size:10pt;"> newbuild monohull vessels are to be used in connection with our contracts to provide well intervention services offshore Brazil.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Our Robotics segment includes remotely operated vehicles (&#8220;ROVs&#8221;), trenchers and ROVDrills designed to complement offshore construction and well intervention services, and currently operates </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> chartered ROV support vessels following the expiration of the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Rem Installer</font><font style="font-family:Arial;font-size:10pt;"> charter on July&#160;12, 2016. Another chartered ROV support vessel, the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Grand Canyon III</font><font style="font-family:Arial;font-size:10pt;">, was delivered by the shipyard to the vessel owner in May&#160;2016. The vessel is currently stacked by the owner and is expected to be in service for us in May&#160;2017.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Our Production Facilities segment includes the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Helix Producer I</font><font style="font-family:Arial;font-size:10pt;"> vessel (</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">&#8220;HP&#160;I&#8221;</font><font style="font-family:Arial;font-size:10pt;">), a ship-shaped dynamic positioning floating production unit, and the Helix Fast Response System (&#8220;HFRS&#8221;), which provides certain operators access to our </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Q4000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">HP&#160;I</font><font style="font-family:Arial;font-size:10pt;"> vessels in the event of a well control incident in the Gulf of Mexico. The </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">HP&#160;I</font><font style="font-family:Arial;font-size:10pt;"> was previously contracted to process production from the Phoenix field until at least December&#160;31, 2017, and in July&#160;2016 we entered into a new fixed fee agreement for the </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">HP&#160;I</font><font style="font-family:Arial;font-size:10pt;"> with the same operator, effective June&#160;1, 2016, for service to the Phoenix field until at least June&#160;1, 2023. The Production Facilities segment also includes our ownership interest in Independence Hub, LLC (&#8220;Independence Hub&#8221;) and included our former ownership interest in Deepwater Gateway, L.L.C. (&#8220;Deepwater Gateway&#8221;) that we sold for </font><font style="font-family:Arial;font-size:10pt;">$25 million</font><font style="font-family:Arial;font-size:10pt;"> in February&#160;2016 (Note&#160;5).</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In January&#160;2016, we sold our office and warehouse property located in Aberdeen, Scotland for approximately </font><font style="font-family:Arial;font-size:10pt;">$11 million</font><font style="font-family:Arial;font-size:10pt;"> and entered into a separate agreement with the same party to lease back the facility for a minimum lease term of </font><font style="font-family:Arial;font-size:10pt;">15</font><font style="font-family:Arial;font-size:10pt;"> years with </font><font style="font-family:Arial;font-size:10pt;">two</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">five</font><font style="font-family:Arial;font-size:10pt;">-year options to extend the lease at our option. A gain of approximately </font><font style="font-family:Arial;font-size:10pt;">$7.6 million</font><font style="font-family:Arial;font-size:10pt;"> from the sale of this property is deferred and will be amortized over the </font><font style="font-family:Arial;font-size:10pt;">15</font><font style="font-family:Arial;font-size:10pt;">-year minimum lease term.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">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.</font></div></div>

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