Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 ________________________________________
FORM 10-Q
________________________________________ 
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2014              or             
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 1-12289
SEACOR Holdings Inc.
(Exact Name of Registrant as Specified in Its Charter)
________________________________________ 
Delaware
 
13-3542736
(State or Other Jurisdiction of
Incorporation or Organization)
 
(IRS Employer
Identification No.)
 
 
2200 Eller Drive, P.O. Box 13038,
 
 
Fort Lauderdale, Florida
 
33316
(Address of Principal Executive Offices)
 
(Zip Code)
954-523-2200
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
________________________________________ 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  ý     No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer  x
 
Accelerated filer  ¨
 
Non-accelerated filer  ¨
(Do not check if a smaller
reporting company)
 
Smaller reporting company  ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨    No  ý
The total number of shares of common stock, par value $.01 per share, outstanding as of July 29, 2014 was 19,822,438. The Registrant has no other class of common stock outstanding.


Table of Contents

SEACOR HOLDINGS INC.
Table of Contents
 
Part I.
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
 
Item 3.
 
 
 
 
Item 4.
 
 
 
Part II.
 
 
 
 
Item 1.
 
 
 
 
 
Item 1A.
 
 
 
 
 
Item 2.
 
 
 
 
 
Item 3.
 
 
 
 
 
Item 4.
 
 
 
 
 
Item 5.
 
 
 
 
 
Item 6.


i

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data, unaudited)
 
June 30,
2014
 
December 31,
2013
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and cash equivalents
$
453,415

 
$
527,435

Restricted cash
14,346

 
12,175

Marketable securities
33,275

 
24,292

Receivables:
 
 
 
Trade, net of allowance for doubtful accounts of $2,260 and $1,162 in 2014 and 2013, respectively
198,768

 
215,768

Other
50,571

 
48,181

Inventories
20,207

 
27,615

Deferred income taxes
116

 
116

Prepaid expenses and other
12,837

 
6,701

Total current assets
783,535

 
862,283

Property and Equipment:
 
 
 
Historical cost
2,216,627

 
2,199,183

Accumulated depreciation
(888,442
)
 
(866,330
)
 
1,328,185

 
1,332,853

Construction in progress
297,523

 
143,482

Net property and equipment
1,625,708

 
1,476,335

Investments, at Equity, and Advances to 50% or Less Owned Companies
484,164

 
440,853

Construction Reserve Funds & Title XI Reserve Funds
324,856

 
261,739

Goodwill
18,012

 
17,985

Intangible Assets, Net
10,754

 
12,423

Other Assets
48,964

 
44,615

 
$
3,295,993

 
$
3,116,233

LIABILITIES AND EQUITY
 
 
 
Current Liabilities:
 
 
 
Current portion of long-term debt
$
43,557

 
$
45,323

Accounts payable and accrued expenses
87,235

 
85,477

Other current liabilities
119,501

 
123,619

Total current liabilities
250,293

 
254,419

Long-Term Debt
830,303

 
834,118

Deferred Income Taxes
456,403

 
457,827

Deferred Gains and Other Liabilities
175,229

 
144,441

Total liabilities
1,712,228

 
1,690,805

Equity:
 
 
 
SEACOR Holdings Inc. stockholders’ equity:
 
 
 
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued nor outstanding

 

Common stock, $.01 par value, 60,000,000 shares authorized; 37,458,240 and 37,219,201 shares issued in 2014 and 2013, respectively
375

 
372

Additional paid-in capital
1,479,942

 
1,394,621

Retained earnings
1,127,846

 
1,095,270

Shares held in treasury of 17,314,425 and 16,837,113 in 2014 and 2013, respectively, at cost
(1,126,322
)
 
(1,088,219
)
Accumulated other comprehensive income (loss), net of tax
225

 
(1,192
)
 
1,482,066

 
1,400,852

Noncontrolling interests in subsidiaries
101,699

 
24,576

Total equity
1,583,765

 
1,425,428

 
$
3,295,993

 
$
3,116,233



The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.
SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data, unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Operating Revenues
$
328,224

 
$
315,563

 
$
638,241

 
$
582,627

Costs and Expenses:
 
 
 
 
 
 
 
Operating
231,906

 
240,113

 
450,882

 
441,026

Administrative and general
34,686

 
34,718

 
72,763

 
70,363

Depreciation and amortization
33,220

 
33,783

 
66,612

 
67,331

 
299,812

 
308,614

 
590,257

 
578,720

Gains on Asset Dispositions and Impairments, Net
4,295

 
12,305

 
8,973

 
14,320

Operating Income
32,707

 
19,254

 
56,957

 
18,227

Other Income (Expense):
 
 
 
 
 
 
 
Interest income
6,030

 
3,218

 
10,073

 
6,385

Interest expense
(10,458
)
 
(7,922
)
 
(21,861
)
 
(20,762
)
Marketable security gains, net
731

 
6,557

 
5,801

 
10,552

Derivative gains (losses), net
94

 
(825
)
 
(143
)
 
(2,932
)
Foreign currency gains (losses), net
1,720

 
(916
)
 
1,521

 
(4,927
)
Other, net
10,213

 
195

 
6,558

 
198

 
8,330

 
307

 
1,949

 
(11,486
)
Income from Continuing Operations Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies
41,037

 
19,561

 
58,906

 
6,741

Income Tax Expense
13,000

 
7,975

 
19,375

 
5,322

Income from Continuing Operations Before Equity in Earnings (Losses) of 50% or Less Owned Companies
28,037

 
11,586

 
39,531

 
1,419

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
(512
)
 
7,710

 
1,709

 
6,841

Income from Continuing Operations
27,525

 
19,296

 
41,240

 
8,260

Loss from Discontinued Operations, Net of Tax

 

 

 
(10,325
)
Net Income (Loss)
27,525

 
19,296

 
41,240

 
(2,065
)
Net Income (Loss) attributable to Noncontrolling Interests in Subsidiaries
6,458

 
25

 
8,664

 
(348
)
Net Income (Loss) attributable to SEACOR Holdings Inc.
$
21,067

 
$
19,271

 
$
32,576

 
$
(1,717
)
 
 
 
 
 
 
 
 
Net Income (Loss) attributable to SEACOR Holdings Inc.:
 
 
 
 
 
 
Continuing operations
$
21,067

 
$
19,271

 
$
32,576

 
$
8,508

Discontinued operations

 

 

 
(10,225
)
 
$
21,067

 
$
19,271

 
$
32,576

 
$
(1,717
)
 
 
 
 
 
 
 
 
Basic Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:
 
 
 
 
 
 
Continuing operations
$
1.05

 
$
0.97

 
$
1.62

 
$
0.43

Discontinued operations

 

 

 
(0.52
)
 
$
1.05

 
$
0.97

 
$
1.62

 
$
(0.09
)
 
 
 
 
 
 
 
 
Diluted Earnings (Loss) Per Common Share of SEACOR Holdings Inc.:
 
 
 
 
 
 
Continuing operations
$
0.98

 
$
0.91

 
$
1.58

 
$
0.42

Discontinued operations

 

 

 
(0.51
)
 
$
0.98

 
$
0.91

 
$
1.58

 
$
(0.09
)
 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding:
 
 
 
 
 
 
 
Basic
19,989,402

 
19,825,229

 
20,049,056

 
19,782,318

Diluted
24,584,494

 
24,392,312

 
24,665,869

 
20,114,904


The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.

1

Table of Contents

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands, unaudited)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Net Income (Loss)
 
$
27,525

 
$
19,296

 
$
41,240

 
$
(2,065
)
Other Comprehensive Income (Loss):
 
 
 
 
 
 
 
 
Foreign currency translation gains (losses)
 
1,826

 
(340
)
 
2,238

 
(4,538
)
Reclassification of foreign currency translation gains to foreign currency gains (losses), net
 
(11
)
 

 
(11
)
 

Derivative gains (losses) on cash flow hedges
 
50

 
331

 
(23
)
 
380

Reclassification of derivative losses on cash flow hedges to equity in earnings (losses) of 50% or less owned companies
 
102

 
151

 
215

 
318

 
 
1,967

 
142

 
2,419

 
(3,840
)
Income tax (expense) benefit
 
(621
)
 
(41
)
 
(763
)
 
1,186

 
 
1,346

 
101

 
1,656

 
(2,654
)
Comprehensive Income (Loss)
 
28,871

 
19,397

 
42,896

 
(4,719
)
Comprehensive Income (Loss) attributable to Noncontrolling Interests in Subsidiaries
 
6,650

 
48

 
8,903

 
(800
)
Comprehensive Income (Loss) attributable to SEACOR Holdings Inc.
 
$
22,221

 
$
19,349

 
$
33,993

 
$
(3,919
)


















The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.

2

Table of Contents

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in thousands, unaudited)
 
 
SEACOR Holdings Inc. Stockholders’ Equity
 
Non-
Controlling
Interests In
Subsidiaries
 
Total
Equity
 
 
Common
Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Shares
Held In
Treasury
 
Accumulated
Other
Comprehensive
Loss
 
December 31, 2013
 
$
372

 
$
1,394,621

 
$
1,095,270

 
$
(1,088,219
)
 
$
(1,192
)
 
$
24,576

 
$
1,425,428

Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan
 

 

 

 
1,201

 

 

 
1,201

Exercise of stock options
 
1

 
4,915

 

 

 

 

 
4,916

Director stock awards
 

 
103

 

 

 

 

 
103

Restricted stock
 
2

 
168

 

 

 

 

 
170

Purchase of treasury shares
 

 

 

 
(39,221
)
 

 

 
(39,221
)
Amortization of share awards
 

 
6,484

 

 

 

 

 
6,484

Cancellation of restricted stock
 

 
83

 

 
(83
)
 

 

 

Purchase of subsidiary shares from noncontrolling interests
 

 
(1,242
)
 

 

 

 
(1,868
)
 
(3,110
)
Issuance of noncontrolling interests, net of issue costs
 

 
74,810

 

 

 

 
70,880

 
145,690

Dividends paid to noncontrolling interests
 

 

 

 

 

 
(792
)
 
(792
)
Net income
 

 

 
32,576

 

 

 
8,664

 
41,240

Other comprehensive income
 

 

 

 

 
1,417

 
239

 
1,656

Six months ended June 30, 2014
 
$
375

 
$
1,479,942

 
$
1,127,846

 
$
(1,126,322
)
 
$
225

 
$
101,699

 
$
1,583,765































The accompanying notes are an integral part of these consolidated financial statements
and should be read in conjunction herewith.

3

Table of Contents

SEACOR HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 
Six Months Ended June 30,
 
2014
 
2013
Net Cash Provided by Operating Activities of Continuing Operations
$
107,866

 
$
78,235

Cash Flows from Investing Activities of Continuing Operations:
 
 
 
Purchases of property and equipment
(273,669
)
 
(87,931
)
Proceeds from disposition of property and equipment
78,039

 
125,432

Investments in and advances to 50% or less owned companies
(21,464
)
 
(26,822
)
Return of investments and advances from 50% or less owned companies
10,013

 
8,315

(Issuances of) payments received on third party leases and notes receivable, net
(6,377
)
 
6,240

Net (increase) decrease in restricted cash
(2,171
)
 
11,509

Net (increase) decrease in construction reserve funds and Title XI reserve funds
(63,117
)
 
45,254

Business acquisitions, net of cash acquired

 
(10,540
)
Net cash provided by (used in) investing activities of continuing operations
(278,746
)
 
71,457

Cash Flows from Financing Activities of Continuing Operations:
 
 
 
Payments on long-term debt and capital lease obligations
(7,226
)
 
(10,027
)
Net (repayments) borrowings under inventory financing arrangements
(6,294
)
 
2,365

Proceeds from issuance of long-term debt
6

 
6

Common stock acquired for treasury
(39,221
)
 

Share award settlements for Era Group employees and directors

 
(357
)
Proceeds and tax benefits from share award plans
6,288

 
8,779

Issuance of noncontrolling interests, net of issue costs
145,116

 
40

Purchase of subsidiary shares from noncontrolling interests
(2,090
)
 

Dividends paid to noncontrolling interests
(792
)
 
(3,276
)
Net cash provided by (used in) financing activities of continuing operations
95,787

 
(2,470
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents
1,073

 
(2,565
)
Net Increase (Decrease) in Cash and Cash Equivalents from Continuing Operations
(74,020
)
 
144,657

Cash Flows from Discontinued Operations:
 
 
 
Operating Activities

 
24,298

Investing Activities

 
(8,502
)
Financing Activities

 
(14,017
)
Effects of Exchange Rate Changes on Cash and Cash Equivalents

 
143

Net Increase in Cash and Cash Equivalents from Discontinued Operations

 
1,922

Net Increase (Decrease) in Cash and Cash Equivalents
(74,020
)
 
146,579

Cash and Cash Equivalents, Beginning of Period
527,435

 
248,204

Cash and Cash Equivalents, End of Period
$
453,415

 
$
394,783






The accompanying notes are an integral part of these condensed consolidated financial statements
and should be read in conjunction herewith.

4

Table of Contents

SEACOR HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1.
BASIS OF PRESENTATION AND ACCOUNTING POLICY
The condensed consolidated financial information for the three and six months ended June 30, 2014 and 2013 has been prepared by the Company and has not been audited by its independent registered public accounting firm. The condensed consolidated financial statements include the accounts of SEACOR Holdings Inc. and its consolidated subsidiaries. In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made to fairly present the Company’s financial position as of June 30, 2014, its results of operations for the three and six months ended June 30, 2014 and 2013, its comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013, its changes in equity for the six months ended June 30, 2014, and its cash flows for the six months ended June 30, 2014 and 2013. Results of operations for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Unless the context otherwise indicates, any reference in this Quarterly Report on Form 10-Q to the “Company” refers to SEACOR Holdings Inc. and its consolidated subsidiaries and any reference in this Quarterly Report on Form 10-Q to “SEACOR” refers to SEACOR Holdings Inc. Capitalized terms used and not specifically defined herein have the same meaning as such defined terms used in the Company's Annual report on Form 10-K for the year ended December 31, 2013.
Discontinued Operations (see Note 15). The Company reports disposed businesses as discontinued operations when it has no continuing interest in the business. Discontinued operations includes the historical financial position, results of operations and cash flows of the operations previously reported as discontinued in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.
Revenue Recognition. The Company recognizes revenue when it is realized or realizable and earned. Revenue is realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price to the buyer is fixed or determinable, and collectability is reasonably assured. Revenue that does not meet these criteria is deferred until the criteria are met. Deferred revenues, included in other current liabilities, for the six months ended June 30, were as follows (in thousands):
 
2014
 
2013
Balance at beginning of period
$
6,592

 
$
6,592

Revenues deferred during the period
202

 

Balance at end of period
$
6,794

 
$
6,592

As of June 30, 2014 and 2013, the Company's deferred revenues related to the time charter of several offshore support vessels scheduled to be paid through the conveyance of an overriding royalty interest (the "Conveyance") in developmental oil and gas producing properties operated by a customer in the U.S. Gulf of Mexico. Payments under the Conveyance, and the timing of such payments, were contingent upon production and energy sale prices. On August 17, 2012, the customer filed a voluntary petition for chapter 11 bankruptcy, which was converted to chapter 7 in June 2014. The Company is vigorously defending its interest in connection with the bankruptcy filing; however, payments received under the Conveyance subsequent to August 17, 2012 and during the 90 days prior to the filing are subject to bankruptcy court approval. The Company will recognize revenues as approved by the bankruptcy court. All costs and expenses related to these charters were recognized as incurred.

5

Table of Contents

Accumulated Other Comprehensive Income (Loss). The components of accumulated other comprehensive income (loss) were as follows:
 
 
SEACOR Holdings Inc. Stockholders' Equity
 
Noncontrolling
Interests
 
 
 
 
Foreign
Currency
Translation
Adjustments
 
Derivative
Losses on
Cash Flow
Hedges, net
 
Other
 
Total
 
Foreign
Currency
Translation
Adjustments
 
Other
 
Other
Comprehensive
Income
December 31, 2013
 
$
(927
)
 
$
(257
)
 
$
(8
)
 
$
(1,192
)
 
$
395

 
$
(5
)
 
 
Other comprehensive income
 
1,988

 
192

 

 
2,180

 
239

 

 
$
2,419

Income tax expense
 
(696
)
 
(67
)
 

 
(763
)
 

 

 
(763
)
Six months ended June 30, 2014
 
$
365

 
$
(132
)
 
$
(8
)
 
$
225

 
$
634

 
$
(5
)
 
$
1,656

New Accounting Pronouncement. On May 28, 2014, the Financial Accounting Standards Board issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under generally accepted accounting principles in the United States. The core principal of the new standard is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard is effective for annual and interim periods beginning after December 15, 2016 and early adoption is prohibited. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows.
Reclassifications. Certain reclassifications of prior period information have been made to conform to the presentation of the current period information. These reclassifications had no effect on net income as previously reported.
2.
FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
The Company’s financial assets and liabilities as of June 30, 2014 that are measured at fair value on a recurring basis were as follows (in thousands):
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
Marketable securities(1)
$
33,275

 
$

 
$

Derivative instruments (included in other receivables)
2,012

 
4,442

 

Construction reserve funds and Title XI reserve funds
324,856

 

 

LIABILITIES
 
 
 
 
 
Short sale of marketable securities (included in other current liabilities)
10,061

 

 

Derivative instruments (included in other current liabilities)
2,043

 
1,016

 

 ______________________
(1)
Marketable security gains, net include unrealized gains of $0.7 million and $6.5 million for the three months ended June 30, 2014 and 2013, respectively, related to marketable security positions held by the Company as of June 30, 2014. Marketable security gains, net include unrealized gains of $5.7 million and $10.5 million for the six months ended June 30, 2014 and 2013, respectively, related to marketable security positions held by the Company as of June 30, 2014.

6

Table of Contents

The estimated fair values of the Company’s other financial assets and liabilities as of June 30, 2014 were as follows (in thousands): 
 
 
 
Estimated Fair Value
 
Carrying
Amount
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
$
467,761

 
$
467,761

 
$

 
$

Investments, at cost, in 50% or less owned companies (included in other
  assets)
9,331

 
see below
 
 
 
 
Notes receivable from third parties (included in other receivables and other assets)
20,228

 
see below
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
Long-term debt, including current portion(1)
873,860

 

 
1,055,228

 

______________________
(1)
The estimated fair value includes the conversion options on the Company's 2.5% and 3.0% Convertible Senior Notes.
The carrying value of cash, cash equivalents and restricted cash approximates fair value. The fair value of the Company’s long-term debt was estimated based upon quoted market prices or by using discounted cash flow analyses based on estimated current rates for similar types of arrangements. It was not practicable to estimate the fair value of the Company’s investments, at cost, in 50% or less owned companies because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. It was not practicable to estimate the fair value of the Company’s notes receivable from third parties as the overall returns are uncertain due to certain provisions for additional payments contingent upon future events. Considerable judgment was required in developing certain of the estimates of fair value and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.
The Company’s non-financial assets and liabilities that were measured at fair value during the six months ended June 30, 2014 were as follows (in thousands):
 
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
 
Long-lived assets held for sale(1)
 
$

 
$
11,700

 
$

______________________
(1)
During the six months ended June 30, 2014, the Company recognized impairment charges of $3.9 million related to two aircraft following the adjustment of their carrying value to fair value based on the expected sales price of each.
3.
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES
Derivative instruments are classified as either assets or liabilities based on their individual fair values. Derivative assets and liabilities are included in other receivables and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. The fair values of the Company’s derivative instruments as of June 30, 2014 were as follows (in thousands): 
 
Derivative
Asset
 
Derivative
Liability
 
 
 
 
Forward currency exchange, option and future contracts
$
92

 
$
60

Interest rate swap agreements

 
998

Commodity swap, option and future contracts:
 
 
 
Exchange traded
2,012

 
1,983

Non-exchange traded
4,350

 
18

 
$
6,454

 
$
3,059

Cash Flow Hedges. As of June 30, 2014, the Company had no interest rate swap agreements designated as cash flow hedges. As of June 30, 2014, one of the Company’s Offshore Marine Services 50% or less owned companies had an interest rate swap agreement maturing in 2015 that has been designated as a cash flow hedge. This instrument calls for this company to pay a fixed interest rate of 1.48% on the amortized notional value of $16.1 million and receive a variable interest rate based on LIBOR on the amortized notional value. Subsequent to June 30, 2014, this interest rate swap was dedesignated. As of June 30, 2014, one of the Company’s Inland River Services 50% or less owned companies had two interest rate swap agreements with maturities in 2015 that have been designated as cash flow hedges. These instruments call for this company to pay fixed rates of interest ranging

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from 1.53% to 1.62% on the aggregate amortized notional value of $18.8 million and receive a variable interest rate based on LIBOR on the aggregate amortized notional value. Additionally, as of June 30, 2014, one of the Company’s Shipping Services 50% or less owned companies had an interest rate swap agreement maturing in 2017 that has been designated as a cash flow hedge. The instrument calls for this company to pay a fixed interest rate of 2.79% on the amortized notional value of $36.2 million and received a variable interest rate based on LIBOR on the amortized notional value. By entering into these interest rate swap agreements, the Company's 50% or less owned companies have converted the variable LIBOR component of certain of their outstanding borrowings to a fixed interest rate.
Other Derivative Instruments. The Company recognized gains (losses) on derivative instruments not designated as hedging instruments for the six months ended June 30 as follows (in thousands):
 
2014
 
2013
Options on equities and equity indices
$
22

 
$
(3,012
)
Forward currency exchange, option and future contracts
187

 
(592
)
Interest rate swap agreements
(135
)
 
237

Commodity swap, option and future contracts:
 
 
 
Exchange traded
950

 
(821
)
Non-exchange traded
(1,167
)
 
1,256

 
$
(143
)
 
$
(2,932
)
The Company holds positions in publicly traded equity options that convey the right or obligation to engage in a future transaction on the underlying equity security or index. The Company’s investment in equity options primarily includes positions in energy, marine, transportation and other related businesses. These contracts are typically entered into to mitigate the risk of changes in the market value of marketable security positions that the Company is either about to acquire, has acquired or is about to dispose of.
The Company enters and settles forward currency exchange, option and future contracts with respect to various foreign currencies. As of June 30, 2014, the outstanding forward currency exchange contracts translated into a net purchase of foreign currencies with an aggregate U.S. dollar equivalent of $4.7 million. These contracts enable the Company to buy currencies in the future at fixed exchange rates, which could offset possible consequences of changes in currency exchange rates with respect to the Company’s business conducted outside of the United States. The Company generally does not enter into contracts with forward settlement dates beyond twelve to eighteen months.
The Company has entered into various interest rate swap agreements with maturities ranging from 2014 through 2018 that call for the Company to pay fixed interest rates ranging from 3.00% to 3.05% on an aggregate amortized notional value of $34.5 million and receive a variable interest rate based on LIBOR or Euribor on these aggregate amortized notional values. As of June 30, 2014, one of the Company’s Offshore Marine Services 50% or less owned companies has an interest rate swap agreement maturing in 2018 that calls for this company to pay a fixed interest rate of 1.30% on the amortized notional value of $98.3 million and receive a variable interest rate based on LIBOR on the amortized notional value. Additionally, another one of the Company's Offshore Marine Services 50% or less owned companies has two interest rate swap agreements maturing in 2020 that call for this company to pay fixed interest rates ranging from 1.89% to 2.27% on the aggregate amortized notional value of $24.9 million and receive a variable interest rate based on LIBOR on the amortized notional value. As of June 30, 2014, one of the Company's Shipping Services 50% or less owned companies has six interest rate swap agreements with maturities ranging from 2018 to 2020 that call for this company to pay fixed rates of interest ranging from 2.96% to 5.40% on the aggregate amortized notional value of $126.0 million and receive a variable interest rate based on LIBOR on the aggregate amortized notional value. The general purpose of these interest rate swap agreements is to provide protection against increases in interest rates, which might lead to higher interest costs for the Company or its 50% or less owned companies.
The Company enters and settles positions in various exchange and non-exchange traded commodity swap, option and future contracts. ICP enters into exchange traded positions (primarily corn) to protect its raw material and finished goods inventory balance from market changes. In the Company’s agricultural commodity trading and logistics business, fixed price future purchase and sale contracts for sugar are included in the Company’s non-exchange traded derivative positions. The Company enters into exchange traded positions to protect these purchase and sale contracts as well as its inventory balances from market changes. As of June 30, 2014, the net market exposure to corn and sugar under these contracts was not material. The Company also enters into exchange traded positions (primarily natural gas, heating oil, crude oil, gasoline, corn and sugar) to provide value to the Company should there be a sustained decline in the price of commodities that could lead to a reduction in the market values and cash flows of the Company’s Offshore Marine Services, Inland River Services and Shipping Services businesses. As of June 30, 2014, none of these types of positions were outstanding.

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4.
BUSINESS ACQUISITIONS
C-Lift Acquisition. On June 6, 2013, the Company acquired a controlling interest in C-Lift through the acquisition of its partner's 50% equity interest for $13.3 million in cash. C-Lift owned and operated two liftboats in the U.S. Gulf of Mexico. The Company performed a fair value analysis and the purchase price was allocated to the acquired assets and liabilities based on their fair values resulting in no goodwill being recorded. The preliminary fair value analysis was finalized in March 2014.
Witt O'Brien's. Subsequent to June 30, 2014, the Company acquired a controlling interest in Witt O'Brien's, a global leader in preparedness, crisis management, and disaster response and recovery, through the acquisition of its partner's 45.8% equity interest for $35.4 million (see Note 6).
5.
EQUIPMENT ACQUISITIONS, DISPOSITIONS AND DEPRECIATION AND IMPAIRMENT POLICIES
During the six months ended June 30, 2014, capital expenditures were $273.7 million, including $148.3 million of progress payments toward the construction of three U.S.-flag product tankers. Equipment deliveries during the period included two crew boats, one supply boat, one wind farm utility vessel, 65 inland river dry-cargo barges and one inland river towboat.
During the six months ended June 30, 2014, the Company sold five crew boats, three supply boats, one wind farm utility vessel, one U.S.-flag product tanker, which was leased back, one foreign-flag short-sea container/RORO vessel and other property and equipment for net proceeds of $100.9 million ($75.3 million in cash and $25.6 million in seller financing) and gains of $50.6 million, of which $10.2 million were recognized currently and $40.4 million were deferred. In addition, the Company recognized previously deferred gains of $2.7 million. The Company also received deposits of $2.7 million related to future offshore support vessel sales.
The Company has sold certain equipment to its 50% or less owned companies, entered into vessel sale-leaseback transactions with finance companies, and provided seller financing on sales of its equipment to third parties and its 50% or less owned companies. A portion of the gains realized from these transactions were deferred and recorded in deferred gains and other liabilities in the accompanying condensed consolidated balance sheets. Deferred gain activity related to these transactions for the six months ended June 30 was as follows (in thousands):
 
2014
 
2013
Balance at beginning of period
$
124,763

 
$
111,514

Adjustments to deferred gains arising from asset sales
40,445

 
2,289

Amortization of deferred gains included in operating expenses as a reduction to rental expense
(7,155
)
 
(5,192
)
Amortization of deferred gains included in gains on asset dispositions and impairments, net
(2,656
)
 
(1,431
)
Balance at end of period
$
155,397

 
$
107,180

Equipment, stated at cost, is depreciated using the straight-line method over the estimated useful life of the asset to an estimated salvage value. With respect to each class of asset, the estimated useful life is based upon a newly built asset being placed into service and represents the point at which it is typically not justifiable for the Company to continue to operate the asset in the same or similar manner. From time to time, the Company may acquire older assets that have already exceeded the Company’s useful life policy, in which case the Company depreciates such assets based on its best estimate of remaining useful life, typically the next survey or certification date.

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As of June 30, 2014, the estimated useful life (in years) of each of the Company’s major categories of new equipment was as follows:
Offshore support vessels (excluding wind farm utility)
20
Wind farm utility vessels
10
Inland river dry-cargo and deck barges
20
Inland river liquid tank barges
25
Inland river towboats
25
U.S.-flag product tankers
25
Short-sea Container/RORO(1) vessels
20
Harbor tugs
25
Ocean liquid tank barges
25
Terminal and manufacturing facilities
20
______________________ 
(1)
Roll on/Roll off ("RORO").
The Company performs an impairment analysis of long-lived assets used in operations, including intangible assets, when indicators of impairment are present. If the carrying value of the assets is not recoverable, as determined by the estimated undiscounted cash flows, the carrying value of the assets is reduced to fair value. Generally, fair value is determined using valuation techniques, such as expected discounted cash flows or appraisals, as appropriate. During the six months ended June 30, 2014, the Company recognized impairment charges of $3.9 million related to two aircraft.
6.
INVESTMENTS, AT EQUITY, AND ADVANCES TO 50% OR LESS OWNED COMPANIES
Mexmar. Mexmar operates offshore support vessels in Mexico. During the six months ended June 30, 2014, Mexmar purchased two offshore support vessels from the Company for $32.0 million ($6.4 million in cash and $25.6 million in seller financing). During the six months ended June 30, 2014, Mexmar repaid $2.6 million of the seller financing.
OSV Partners. OSV Partners was formed to own and operate six offshore support vessels. During the six months ended June 30, 2014, the Company contributed additional capital of $1.6 million to fund certain capital acquisitions. During the six months ended June 30, 2014, OSV Partners purchased one offshore support vessel from the Company for $13.5 million in cash.
SCFCo Holdings. SCFCo Holdings was established to operate towboats and dry-cargo barges on the Parana-Paraguay Rivers and a terminal facility at Port Ibicuy, Argentina. During the six months ended June 30, 2014, the Company and its partner each contributed additional capital of $12.2 million. As of June 30, 2014, the Company had outstanding loans to SCFCo Holdings of $3.7 million.
SeaJon. SeaJon owns an articulated tug-barge operating in the Great Lakes trade. During the six months ended June 30, 2014, the Company and its partner each contributed additional capital of $1.3 million to fund certain capital acquisitions.
Avion. Avion is a distributor of aircraft and aircraft related parts. During the six months ended June 30, 2014, Avion repaid $4.0 million of outstanding notes to the Company.
Witt-O'Brien's. Witt-O'Brien's is a global leader in preparedness, crisis management, and disaster response and recovery. During the six months ended June 30, 2014, the Company received distributions of $0.8 million from Witt-O'Brien's. Subsequent to June 30, 2014, the Company acquired a controlling interest in Witt-O'Brien's through the acquisition of its partner's 45.8% equity interest for $35.4 million (see Note 4).
Cleancor. On August 20, 2013, CLEANCOR Energy Solutions LLC ("Cleancor") was established to be a full service solution provider delivering clean fuel to end users. During the six months ended June 30, 2014, the Company contributed capital of $4.8 million to Cleancor to fund its start-up operations and provide capital for future investments.
Other. During the six months ended June 30, 2014, the Company received a capital distribution of $2.1 million from one of Inland River Services' 50% or less owned companies, loaned $0.7 million to one of Offshore Marine Services' 50% or less owned companies and contributed capital of $0.2 million and loaned $0.3 million to certain of its industrial aviation businesses in Asia.
Guarantees. The Company has guaranteed the payment of amounts owed by one of its 50% or less owned companies under a vessel charter and has guaranteed amounts owed under banking facilities by certain of its 50% or less owned companies. As of June 30, 2014, the total amount guaranteed by the Company under these arrangements was $15.3 million. In addition, as of June 30, 2014, the Company had uncalled capital commitments to two of its 50% or less owned companies for a total of $2.4

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million. Subsequent to June 30, 2014, the Company's guarantees increased by $19.0 million after certain of the Company's 50% or less owned companies obtained bank financing.
7.
COMMITMENTS AND CONTINGENCIES
As of June 30, 2014, the Company's unfunded capital commitments were $412.8 million and included: $86.5 million for 13 offshore support vessels; $1.1 million for two inland river tank barges; $4.6 million for four inland river towboats; $230.2 million for three U.S.-flag product tankers; $78.4 million for one U.S.-flag articulated tug-barge; and $12.0 million for other equipment and improvements. These commitments are payable as follows: $99.7 million is payable during the remainder of 2014; $303.8 million is payable during 2015-2016; and $9.3 million is payable during 2017.
On July 20, 2010, two individuals purporting to represent a class commenced a civil action in the Civil District Court for the Parish of Orleans in the State of Louisiana, John Wunstell, Jr. and Kelly Blanchard v. BP, et al., No. 2010-7437 (Division K) (the “Wunstell Action”), in which they assert, among other theories, that Mr. Wunstell suffered injuries as a result of his exposure to certain noxious fumes and chemicals in connection with the provision of remediation, containment and response services by ORM, a subsidiary of the Company prior to the ORM Transaction, during the Deepwater Horizon oil spill response and clean-up in the U.S Gulf of Mexico. The action now is part of the overall multi-district litigation, In re Oil Spill by the Oil Rig "Deepwater Horizon", MDL No. 2179 filed in the U.S. District Court for the Eastern District of Louisiana ("MDL"). The complaint also seeks to establish a “class-wide court-supervised medical monitoring program” for all individuals “participating in BP's Deepwater Horizon Vessels of Opportunity Program and/or Horizon Response Program” who allegedly experienced injuries similar to those of Mr. Wunstell. The Company believes this lawsuit has no merit and will continue to vigorously defend the action and pursuant to contractual agreements with the responsible party, the responsible party has agreed, subject to certain potential limitations, to indemnify and defend ORM in connection with the Wunstell Action and claims asserted in the MDL, discussed further below. Although the Company is unable to estimate the potential exposure, if any, resulting from this matter, the Company does not expect it will have a material effect on the Company's consolidated financial position, results of operations or cash flows.
On December 15, 2010, ORM and NRC, subsidiaries of the Company prior to the ORM Transaction and SES Business Transaction, respectively, were named as defendants in one of the several consolidated “master complaints” that have been filed in the overall MDL. The master complaint naming ORM and NRC asserts various claims on behalf of a putative class against multiple defendants concerning the clean-up activities generally, and the use of dispersants specifically. By court order, the Wunstell Action has been stayed as a result of the filing of the referenced master complaint. The Company believes that the claims asserted against ORM and NRC in the master complaint have no merit and on February 28, 2011, ORM and NRC moved to dismiss all claims against them in the master complaint on legal grounds. On September 30, 2011, the Court granted in part and denied in part the motion to dismiss that ORM and NRC had filed (an amended decision was issued on October 4, 2011 that corrected several grammatical errors and non-substantive oversights in the original order). Although the Court refused to dismiss the referenced master complaint in its entirety at that time, the Court did recognize the validity of the “derivative immunity” and “implied preemption” arguments that ORM and NRC advanced and directed ORM and NRC to (i) conduct limited discovery to develop evidence to support those arguments and (ii) then re-assert the arguments. The Court did, however, dismiss all state-law claims and certain other claims that had been asserted in the referenced master complaint, and dismissed the claims of all plaintiffs that have failed to allege a legally-sufficient injury. A schedule for limited discovery and motion practice was established by the Court and, in accordance with that schedule, ORM and NRC filed for summary judgment re-asserting their derivative immunity and implied preemption arguments on May 18, 2012. Those motions were argued on July 13, 2012 and are still pending decision. In addition to the indemnity provided to ORM, pursuant to contractual agreements with the responsible party, the responsible party has agreed, subject to certain potential limitations, to indemnify and defend ORM and NRC in connection with these claims in the MDL. Although the Company is unable to estimate the potential exposure, if any, resulting from this matter, the Company does not expect it will have a material effect on the Company's consolidated financial position, results of operations or cash flows.
Subsequent to the filing of the referenced master complaint, ten additional individual civil actions have been filed in or removed to the U.S. District Court for the Eastern District of Louisiana concerning the clean-up activities generally, which name the Company, ORM and/or NRC as defendants or third-party defendants and are part of the overall MDL. By court order, all of these additional individuals' cases have been stayed until further notice. On April 8, 2011, ORM was named as a defendant in Johnson Bros. Corporation of Louisiana v. BP, PLC, et al., No. 2:11-CV-00781 (E.D. La.), which is a suit by an individual business seeking damages allegedly caused by a delay on a construction project alleged to have resulted from the clean-up operations. On April 13, 2011, the Company was named as a defendant in Mason v. Seacor Marine, LLC, No. 2:11-CV-00826 (E.D. La.), an action in which plaintiff, a former employee, alleges sustaining personal injuries in connection with responding to the explosion and fire, but also in the months thereafter in connection with the clean-up of oil and dispersants while a member of the crew of the M/V Seacor Vanguard. Although the case is subject to the MDL Court’s stay of individual proceedings, the employee moved to sever his case from the MDL on July 16, 2012, which the Court denied on March 5, 2013. The employee filed a motion asking the Court to reconsider, which was denied on May 3, 2013, and the employee filed a Notice of Appeal to the U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) on May 22, 2013. On July 24, 2013, the Company filed a motion to dismiss for lack of appellate jurisdiction, which was granted on August 16, 2013. The same company employee has also brought a claim in the M/

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V Seacor Vanguard vessel’s limitation action in the MDL which relates to any actions that may have been taken by vessels owned by the Company to extinguish the fire. On April 15, 2011, ORM and NRC were named as defendants in James and Krista Pearson v. BP Exploration & Production, Inc. ("BP Exploration"), et al., No. 2:11-CV-00863 (E.D. La.), which is a suit by a husband and wife, who allegedly participated in the clean-up effort and are seeking damages for personal injury, property damage to their boat, and amounts allegedly due under contract. On April 15, 2011, ORM and NRC were named as defendants in Thomas Edward Black v. BP Exploration, et al., No. 2:11-CV-00867 (E.D. La.), which is a suit by an individual who is seeking damages for lost income because he allegedly could not find work in the fishing industry after the oil spill. On April 20, 2011, a complaint was filed in Darnell Alexander, et al. v. BP, PLC, et al., No. 2:11-CV-00951 (E.D. La.) on behalf of 117 individual plaintiffs that seek to adopt the allegations made in the referenced master complaint against ORM and NRC (and the other defendants). Plaintiffs in this matter have since been granted leave to amend their complaint to include 410 additional individual plaintiffs. On October 3, 2012, ORM and NRC were served with a Rule 14(c) Third-Party Complaint by Jambon Supplier II, L.L.C. and Jambon Marine Holdings L.L.C. in their Limitation of Liability action, In the Matter of Jambon Supplier II, L.L.C., et al., No. 2:12-CV-00426 (E.D. La.). This Third-Party Complaint alleges that if claimant David Dinwiddie, who served as a clean-up crewmember aboard the M/V JAMBON SUPPLIER II vessel during the clean-up efforts, was injured as a result of his exposure to dispersants and chemicals during the course and scope of his employment, then said injuries were caused by the third-party defendants. On November 25, 2012, ORM was named as a defendant in Victoria Sanchez v. American Pollution Control Corp. et al., No. 2:12-CV-00164 (E.D. La.), a maritime suit filed by an individual who allegedly participated in the clean-up effort and sustained personal injuries during the course of such employment. On December 17, 2012, the Court unsealed a False Claims Act lawsuit naming ORM as a defendant, Dillon v. BP, PLC et al., No. 2:12-CV-00987 (E.D. La.)., which is a suit by an individual seeking damages and penalties arising from alleged false reports and claims made to the federal government with respect to the amount of oil burned and dispersed during the clean-up. The federal government has declined to intervene in this suit. On April 8, 2013, the Company, ORM, and NRC were named as defendants in William and Dianna Fitzgerald v. BP Exploration et al., No. 2:13-CV-00650 (E.D. La.), which is a suit by a husband and wife whose son allegedly participated in the clean-up effort and became ill as a result of his exposure to oil and dispersants. Finally, on April 17, 2013, ORM was named as a defendant in Danos et al. v. BP America Production Co. et al., No. 2:13-CV-03747 (removed to E.D. La.), which is a suit by eight individuals seeking damages for dispersant exposure either as a result of their work during clean-up operations or as a result of their residence in the Gulf. The Company is unable to estimate the potential exposure, if any, resulting from these matters but believes they are without merit and does not expect that they will have a material effect on its consolidated financial position, results of operations or cash flows.
On February 18, 2011, Triton Asset Leasing GmbH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., and Transocean Deepwater Inc. (collectively “Transocean”) named ORM and NRC as third-party defendants in a Rule 14(c) Third-Party Complaint in Transocean's own Limitation of Liability Act action, which is part of the overall MDL, tendering to ORM and NRC the claims in the referenced master complaint that have already been asserted against ORM and NRC. Transocean, Cameron International Corporation, Halliburton Energy Services, Inc., and M-I L.L.C. also filed cross-claims against ORM and NRC for contribution and tort indemnity should they be found liable for any damages in Transocean's Limitation of Liability Act action and ORM and NRC have asserted counterclaims against those same parties for identical relief. Weatherford U.S., L.P. and Weatherford International, Inc. (collectively "Weatherford") had also filed cross-claims against ORM and NRC, but moved to voluntarily dismiss these cross-claims without prejudice on February 8, 2013. The Court granted Weatherford's motion that same day. Transcoean's limitation action, and thus the remainder of the aforementioned cross-claims, remains pending. As indicated above, the Company is unable to estimate the potential exposure, if any, resulting from these actions but believes they are without merit and does not expect that these matters will have a material effect on its consolidated financial position, results of operations or cash flows.
On November 16, 2012, 668 individuals who served as beach clean-up workers in Escambia County, Florida during the Deepwater Horizon oil spill response commenced a civil action in the Circuit Court for the First Judicial Circuit of Florida, in and for Escambia County, Abney et al. v. Plant Performance Services, LLC et al., No. 2012-CA-002947, in which they allege, among other things, that ORM and other defendants engaged in the contamination of Florida waters and beaches in violation of Florida Statutes Chapter 376 and injured the plaintiffs by exposing them to dispersants during the course and scope of their employment. The case was removed to the U.S. District Court for the Northern District of Florida on January 13, 2013, Abney et al. v. Plant Performance Services, LLC et al., No. 3:13-CV-00024 (N.D. Fla.), and on January 16, 2013, the United States Judicial Panel on Multidistrict Litigation (“JPML”) issued a Conditional Transfer Order (“CTO”) transferring the case to the MDL, subject to any timely-filed notice of objection from the plaintiffs. Upon receipt of a notice of objection from the plaintiffs, a briefing schedule was set by the JPML, and so a stay of proceedings and suspension of deadlines was sought and obtained by the Court in the U.S. District Court for the Northern District of Florida. Following briefing before the JPML, the case was transferred to the U.S. District Court for the Eastern District of Louisiana and consolidated with the MDL on April 2, 2013. On April 22, 2013, a companion case to this matter was filed in the U.S. District Court for the Northern District of Florida, Abood et al. v. Plant Performance Services, LLC et al., No. 3:13-CV-00284 (N.D. Fla.), which alleges identical allegations against the same parties but names an additional 174 plaintiffs, all of whom served as clean-up workers in various Florida counties during the Deepwater Horizon oil spill response.  A CTO was issued by the JPML on May 2, 2013, no objection was filed by the plaintiffs, and the case was transferred to the U.S. District Court for the Eastern District of Louisiana and consolidated with the MDL on May 10, 2013.  By court order,

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both of these matters have been stayed until further notice. The Company is unable to estimate the potential exposure, if any, resulting from these matters but believes they are without merit and does not expect that these matters will have a material effect on its consolidated financial position, results of operations or cash flows.
Separately, on March 2, 2012, the Court announced that BP Exploration and BP America Production Company ("BP America") (collectively "BP") and the plaintiffs had reached an agreement on the terms of two proposed class action settlements that will resolve, among other things, plaintiffs' economic loss claims and clean-up related claims against BP. The parties filed their proposed settlement agreements on April 18, 2012 along with motions seeking preliminary approval of the settlements. The Court held a hearing on April 25, 2012 to consider those motions and preliminarily approved both settlements on May 2, 2012. A final fairness hearing took place on November 8, 2012. The Court granted final approval to the Economic and Property Damages Class Action Settlement ("E&P Settlement") on December 21, 2012, and granted final approval to the Medical Benefits Class Action Settlement ("Medical Settlement") on January 11, 2013. Both class action settlements were appealed to the Fifth Circuit. The Fifth Circuit affirmed the MDL Court's decision concerning the E&P Settlement on January 10, 2014, and also affirmed the MDL Court's decision concerning the interpretation of the E&P Settlement with respect to business economic loss claims on March 3, 2014. The appeal of the Medical Settlement, on the other hand, was voluntarily dismissed and the Medical Settlement became effective on February 12, 2014. The deadline for bringing a claim to the Medical Benefits Claims Administrator is one year from the effective date of the Settlement. Although neither the Company, ORM, or NRC are parties to the settlement agreements, the Company, ORM, and NRC are listed as released parties on the releases accompanying both settlement agreements. Consequently, barring any further successful appeal, class members who did not file timely requests for exclusion will be barred from pursuing economic loss, property damage, personal injury, medical monitoring, and/or other released claims against the Company, ORM, and NRC. The Company believes these settlements have reduced the Company and ORM's potential exposure, if any, from some of the pending actions described above, and continues to evaluate the settlements' impacts on these cases.
On January 29, 2013, HEPACO, LLC ("HEPACO"), served a demand for arbitration upon ORM, in which HEPACO claimed that ORM owed HEPACO an additional fee of $20,291,178.92 under the parties' Management Services Agreement (“MSA”), dated June 1, 2010.  HEPACO claimed that the MSA required ORM to pay HEPACO an additional fee of 30% of total charges paid under the MSA ("Surcharge") to compensate HEPACO for U.S. Longshoremen's and Harbor Workers' insurance or Jones Act insurance and related risks attendant to the work when a contract requires labor to be performed over, adjoining and/or in water. On June 23, 2014, ORM and HEPACO entered into an agreement to settle HEPACO's claims in the arbitration without a material impact to the Company's results of operations or cash flows and, on July 2, 2014, the HEPACO arbitration was dismissed with prejudice.
ORM is defending against two collective action lawsuits, each asserting failure to pay overtime with respect to individuals who provided service on the Deepwater Horizon oil spill response (the “DPH FLSA Actions”) under the Fair Labor Standards Act (“FLSA”).  These cases, Dennis Prejean v. O'Brien's Response Management Inc. (E.D. La., Case No.: 2:12-cv-01045) (the “Prejean Action”) and Himmerite et al. v. O'Brien's Response Management Inc. et al. (E.D. La., Case No.: 2:12-cv-01533) (the “Himmerite Action”), were each brought on behalf of certain individuals who worked on the Deepwater Horizon oil spill response and who were classified as independent contractors.  The Prejean and Himmerite Actions were each filed in the United States District Court for the Eastern District of Louisiana and then subsequently consolidated with the overall MDL, in which the Himmerite Action was stayed pursuant to procedures of the MDL.  However, both the Prejean and Himmerite Actions were severed from the MDL on September 19, 2013, and referred to a Magistrate Judge for pretrial case management, including issuing a scheduling order, overseeing discovery, and any other preliminary matters.  On October 31, 2013, ORM filed an answer in the Himmerite Action.  In the Himmerite Action, pursuant to an earlier tolling order entered by the Court, the limitations periods for potential plaintiffs to opt-in to the action has been tolled pending further action by the Court.  In the Prejean Action, ORM has answered the complaint and a scheduling order has been issued. On November 6, 2013, the Court conditionally certified a collective class in the Prejean Action.  On December 9, 2013 the Court approved a jointly-submitted form notice and authorized the issuance of notice to all members of the conditionally certified class in the Prejean Action. On December 20, 2013, ORM served plaintiffs’ counsel with a list containing information for approximately 330 potential class members in the Prejean Action. The deadline for plaintiffs to file executed consent forms with the Court has expired. As of February 28, 2014 the Court-ordered deadline for potential class members to opt into the class, 142 individuals have opted in. Although the Court has conditionally certified the Prejean class, the Court has not made a final ruling on whether a class exists. The Company intends to vigorously defend its position that a class should not be certified, and intends on filing a motion to decertify the Prejean class. The Court has also not yet ruled on any of the merits of Plaintiffs’ claims. The Company does not expect the potential exposure, if any, resulting from these DPH FLSA Actions will have a material impact on the Company's results of operations or cash flows, but believes the actions are without merit and will continue to vigorously defend against them.
In a related action, Baylor Singleton et. al. v. O'Brien's Response Management Inc. et. al. (E.D. La., Case No.: 2:12-cv-01716) (the “Singleton Action”), which was also filed in the United States District Court for the Eastern District of Louisiana and in which plaintiffs alleged claims similar to those alleged in the Prejean and Himmerite Actions, the parties reached a full and final settlement agreement on February 13, 2014 with respect to all of the Plaintiff’s individual claims for an undisclosed amount.

13

Table of Contents

On April 11, 2014, the Court approved the parties’ settlement and dismissed the Singleton Action with prejudice in its entirety. The Court also ordered that the tolling order which had been entered in the Singleton Action expired as of April 11, 2014.
In the course of the Company's business, it may agree to indemnify the counterparty to an agreement.  If the indemnified party makes a successful claim for indemnification, the Company would be required to reimburse that party in accordance with the terms of the indemnification agreement.  Indemnification agreements generally are subject to threshold amounts, specified claim periods and other restrictions and limitations.
In connection with the SES Business Transaction and the ORM Transaction, the Company remains contingently liable for certain obligations, including potential liabilities relating to work performed in connection with the Deepwater Horizon oil spill response. In the case of the SES Business Transaction, such potential liabilities may not exceed the consideration received by the Company for the SES Business Transaction and in the case of the ORM Transaction are subject to a negotiated cap. The Company currently is indemnified under contractual agreements with BP.
During the six months ended June 30, 2014, the Company received net litigation settlement proceeds of $14.7 million from an equipment supplier relating to the May 2008 mechanical malfunction and fire onboard the SEACOR Sherman, an anchor handling towing supply vessel then under construction.  Upon settlement of the litigation, the Company recognized a gain of $14.7 million, which is included in other income (expense) in the accompanying condensed consolidated statements of income (loss).
In the normal course of its business, the Company becomes involved in various other litigation matters including, among other things, claims by third parties for alleged property damages and personal injuries. Management has used estimates in determining the Company's potential exposure to these matters and has recorded reserves in its financial statements related thereto where appropriate. It is possible that a change in the Company's estimates of that exposure could occur, but the Company does not expect such changes in estimated costs would have a material effect on the Company's consolidated financial position, results of operations or cash flows.
8.
MULTI-EMPLOYER PENSION PLANS
During the six months ended June 30, 2014, the Company received notification from the American Maritime Officers Pension Plan (the "AMOPP”) that the Company's withdrawal liability as of September 30, 2013 was $46.5 million based on an actuarial valuation performed as of that date. That liability may change in future years based on various factors, primarily employee census. As of June 30, 2014, the Company has no intention to withdraw from the AMOPP and no deficit amounts have been invoiced. Depending upon the results of the future actuarial valuations and the ten-year rehabilitation plan, it is possible that the AMOPP will experience further funding deficits, requiring the Company to recognize additional payroll related operating expenses in the periods invoices are received or contribution levels are increased.
9.
LONG-TERM DEBT
As of June 30, 2014, the Company had outstanding letters of credit totaling $18.2 million with various expiration dates through 2018.
During the six months ended June 30, 2014, the Company made scheduled payments on long-term debt of $7.2 million and made net repayments of $6.3 million under inventory financing arrangements.
SEACOR’s Board of Directors has previously authorized the Company to purchase any or all of its 7.375% Senior Notes due 2019, which may be acquired through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. During the six months ended June 30, 2014, the Company did not repurchase any of its 7.375% Senior Notes due 2019.
10.
STOCK REPURCHASES
SEACOR’s Board of Directors previously approved a securities repurchase plan that authorizes the Company to acquire shares of SEACOR common stock, par value $0.01 per share (“Common Stock”), which may be acquired through open market purchases, privately negotiated transactions or otherwise, depending on market conditions. During the six months ended June 30, 2014, the Company acquired 493,032 shares of Common Stock for treasury for an aggregate purchase price of $39.2 million. As of June 30, 2014, the remaining authority under the repurchase plan was $60.8 million.
On June 20, 2014, the Company executed a purchase agreement whereby the Company appointed Goldman, Sachs & Co. as broker to purchase Common Stock in compliance with the requirements of Rule 10b5-1(c)(l)(i) for the period June 19, 2014 through August 4, 2014. Subsequent to June 30, 2014 and through July 29, 2014, the Company purchased 321,377 shares

14

Table of Contents

of Common Stock for treasury for an aggregate purchase price of $25.4 million. Effective July 31, 2014, SEACOR’s Board of Directors increased the Company's authority to repurchase Common Stock to $150.0 million.
11.
NONCONTROLLING INTERESTS IN SUBSIDIARIES
Noncontrolling interests in the Company's consolidated subsidiaries were as follows (amounts in thousands except noncontrolling interests' percentages):
 
Noncontrolling Interests
 
June 30, 2014
 
December 31, 2013
Offshore Marine Services:
 
 
 
 
 
 
 
Windcat Workboats Ltd.
25%
 
$
7,761

 
$
7,541

Other
1.8
%
33.3%
 
1,233

 
1,600

Inland River Services:
 
 
 
 
 
 
 
Other
3.0
%
51.8%
 
1,204

 
2,612

Shipping Services:
 
 
 
 
 
 
 
Sea-Vista
49%
 
72,886

 

Illinois Corn Processing
30%
 
16,864

 
10,894

Other
5.0
%
18.9%
 
1,751

 
1,929

 
 
 
 
 
$
101,699

 
$
24,576

Windcat Workboats. Windcat Workboats Holdings Ltd. (“Windcat Workboats”) owns and operates the Company’s wind farm utility vessels that are primarily used to move personnel and supplies in the major offshore wind markets of Europe. As of June 30, 2014, the net assets of Windcat Workboats were $31.0 million. During the six months ended June 30, 2014, the net loss of Windcat Workboats was $0.1 million and the amount attributable to the noncontrolling interest was not material. During the six months ended June 30, 2013, the net loss of Windcat Workboats was $2.7 million, of which $0.7 million was attributable to noncontrolling interests.
SEA-Vista. On May 2, 2014, the Company issued a 49% noncontrolling interest to a financial investor in certain of its subsidiaries (collectively "SEA-Vista") that own and operate the Company's fleet of U.S.-flag product tankers used in the U.S. coastwise trade of crude oil, petroleum and specialty chemical products for $145.7 million, net of $3.2 million in issue costs. SEA-Vista also holds the Company's contracts for the construction of three 50,000 DWT (deadweight tonnage) product tankers with expected deliveries in May 2016, October 2016 and March 2017, as well as its Title XI bonds payable and reserve funds and certain other working capital. The Company has evaluated the noncontrolling interest's protective rights in SEA-Vista, its ownership interest, and the underlying terms and conditions that govern SEA-Vista's operations and determined that the Company controls SEA-Vista. As a result, the Company has consolidated the financial position, operating results and cash flows of SEA-Vista. As of June 30, 2014, the net assets of SEA-Vista were $148.7 million. From May 2, 2014 through June 30, 2014, the net income of SEA-Vista was $4.1 million, of which $2.0 million was attributable to noncontrolling interests.
Illinois Corn Processing. Illinois Corn Processing LLC (“ICP”) owns and operates an alcohol manufacturing, storage and distribution facility located in Pekin, IL. As of June 30, 2014, the net assets of ICP were $62.5 million. During the six months ended June 30, 2014, the net income of ICP was $23.8 million, of which $6.0 million was attributable to noncontrolling interests. During the six months ended June 30, 2013, the net loss of ICP was $3.5 million, of which $1.3 million was attributable to noncontrolling interests.
For the twelve months ending March 31, 2014, the noncontrolling member of ICP had invoked a plant shutdown election that is available to each LLC member under certain circumstances; however, under its member rights, the Company elected to keep the plant in operation. As a result, the earnings and losses of ICP were disproportionately allocated to its members during the plant shutdown election period. Effective April 1, 2014, the noncontrolling member of ICP withdrew its plant shutdown election.
Inland River Services. During the six months ended June 30, 2014, the Company acquired the noncontrolling interest in one of its Inland River Services partnerships for $3.1 million ($2.1 million in cash and $1.0 million through the distribution of an inland river towboat to the noncontrolling interest holder).
12.
EARNINGS PER COMMON SHARE OF SEACOR
Basic earnings per common share of SEACOR are computed based on the weighted average number of common shares issued and outstanding during the relevant periods. Diluted earnings per common share of SEACOR are computed based on the weighted average number of common shares issued and outstanding plus the effect of potentially dilutive securities through the application of the treasury stock and if-converted methods. Dilutive securities for this purpose assumes restricted stock grants have vested, common shares have been issued pursuant to the exercise of outstanding stock options and common shares have been issued pursuant to the conversion of all outstanding convertible notes.

15

Table of Contents

Computations of basic and diluted earnings per common share of SEACOR were as follows (in thousands, except share data):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Net Income Attributable to SEACOR
 
Average O/S Shares
 
Per Share
 
Net Income (Loss) Attributable to SEACOR
 
Average O/S Shares
 
Per Share
2014
 
 
 
 
 
 
 
 
 
 
 
Basic Weighted Average Common Shares Outstanding
$
21,067

 
19,989,402

 
$
1.05

 
$
32,576

 
20,049,056

 
$
1.62

Effect of Dilutive Share Awards:
 
 
 
 
 
 
 
 
 
 
 
Options and Restricted Stock(1)

 
394,567

 
 
 

 
416,288

 
 
Convertible Notes(2)
3,148

 
4,200,525

 
 
 
6,287

 
4,200,525

 
 
Diluted Weighted Average Common Shares Outstanding
$
24,215

 
24,584,494

 
$
0.98

 
$
38,863

 
24,665,869

 
$
1.58

2013
 
 
 
 
 
 
 
 
 
 
 
Basic Weighted Average Common Shares Outstanding
$
19,271

 
19,825,229

 
$
0.97

 
$
(1,717
)
 
19,782,318

 
$
(0.09
)
Effect of Dilutive Share Awards:
 
 
 
 
 
 
 
 
 
 
 
Options and Restricted Stock(1)

 
366,558

 
 
 

 
332,586

 
 
Convertible Notes(3)
3,044

 
4,200,525

 
 
 

 

 
 
Diluted Weighted Average Common Shares Outstanding
$
22,315

 
24,392,312

 
$
0.91

 
$
(1,717
)
 
20,114,904

 
$
(0.09
)
______________________ 
(1)
For the three months ended June 30, 2014 and 2013, diluted earnings per common share of SEACOR excluded 365,398 and 355,490 of certain share awards, respectively, as the effect of their inclusion in the computation would be anti-dilutive. For the six months ended June 30, 2014 and 2013, diluted earnings per common share of SEACOR excluded 288,510 and 503,726 of certain share awards, respectively, as the effect of their inclusion in the computation would be anti-dilutive.
(2)
For the three and six months ended June 30, 2014, diluted earnings per common share of SEACOR excluded 1,825,326 common shares issuable pursuant to the Company's 3.0% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive.
(3)
For the six months ended June 30, 2013, diluted earnings per common share of SEACOR excluded 4,200,525 common shares issuable pursuant to the Company's 2.5% Convertible Senior Notes as the effect of their inclusion in the computation would be anti-dilutive.
13.
SHARE BASED COMPENSATION
Transactions in connection with the Company’s share based compensation plans during the six months ended June 30, 2014 were as follows:
Director stock awards granted
1,250

Employee Stock Purchase Plan (“ESPP”) shares issued
16,720

Restricted stock awards granted
147,645

Restricted stock awards canceled
1,000

Shares released from Deferred Compensation Plan

Stock Option Activities:
 
Outstanding as of December 31, 2013
1,481,280

Granted
106,925

Exercised
(90,144
)
Outstanding as of June 30, 2014
1,498,061

Shares available for future grants and ESPP purchases as of June 30, 2014
1,236,955


16

Table of Contents

14.    SEGMENT INFORMATION
Accounting standards require public business enterprises to report information about each of their operating business segments that exceed certain quantitative thresholds or meet certain other reporting requirements. Operating business segments have been defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s segment presentation and basis of measurement of segment profit or loss are as previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
The following tables summarize the operating results, capital expenditures and assets of the Company's reportable segments.
 
Offshore
Marine
Services
$’000
 
Inland
River
Services
$’000
 
Shipping
Services
$’000
 
ICP
$’000
 
Other
$’000
 
Corporate
and
Eliminations
$’000
 
Total
$’000
For the three months ended
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
138,214

 
55,200

 
53,575

 
72,798

 
8,437

 

 
328,224

Intersegment
33

 
807

 

 

 

 
(840
)
 

 
138,247

 
56,007

 
53,575

 
72,798

 
8,437

 
(840
)
 
328,224

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
93,755

 
45,047

 
28,018

 
56,429

 
9,464

 
(807
)
 
231,906

Administrative and general
13,426

 
3,835

 
5,421

 
594

 
3,449

 
7,961

 
34,686

Depreciation and amortization
16,448

 
7,564

 
7,115

 
1,010

 
82

 
1,001

 
33,220

 
123,629

 
56,446

 
40,554

 
58,033

 
12,995

 
8,155

 
299,812

Gains (Losses) on Asset Dispositions
3,526

 
810

 
(41
)
 

 

 

 
4,295

Operating Income (Loss)
18,144

 
371

 
12,980

 
14,765

 
(4,558
)
 
(8,995
)
 
32,707

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative gains (losses), net
(70
)
 

 

 
(1,519
)
 
1,500

 
183

 
94

Foreign currency (gains) losses, net
1,322

 
474

 
1

 

 
53

 
(130
)
 
1,720

Other, net
14,739

 

 
158

 
300

 
(5,013
)
 
29

 
10,213

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
2,244

 
(3,335
)
 
1,564

 

 
(985
)
 

 
(512
)
Segment Profit (Loss)
36,379

 
(2,490
)
 
14,703

 
13,546

 
(9,003
)
 
 
 
 
Other Income (Expense) not included in Segment Profit (Loss)
 
(3,697
)
Less Equity Losses included in Segment Profit (Loss)
 
512

Income Before Taxes and Equity Earnings
 
41,037


17

Table of Contents


 
Offshore
Marine
Services
$’000
 
Inland
River
Services
$’000
 
Shipping
Services
$’000
 
ICP(1)(2)
$’000
 
Other
$’000
 
Corporate
and
Eliminations
$’000
 
Total
$’000
For the six months ended
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
267,171

 
112,211

 
105,976

 
131,454

 
21,429

 

 
638,241

Intersegment
77

 
1,755

 

 

 

 
(1,832
)
 

 
267,248

 
113,966

 
105,976

 
131,454

 
21,429

 
(1,832
)
 
638,241

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
187,798

 
84,721

 
55,015

 
103,703

 
21,400

 
(1,755
)
 
450,882

Administrative and general
28,586

 
8,172

 
11,317

 
1,105

 
6,560

 
17,023

 
72,763

Depreciation and amortization
32,752

 
14,934

 
14,869

 
2,000

 
167

 
1,890

 
66,612

 
249,136

 
107,827

 
81,201

 
106,808

 
28,127

 
17,158

 
590,257

Gains (Losses) on Asset Dispositions
  and Impairments, Net
11,264

 
1,663

 
(41
)
 

 
(409
)
 
(3,504
)
 
8,973

Operating Income (Loss)
29,376

 
7,802

 
24,734

 
24,646

 
(7,107
)
 
(22,494
)
 
56,957

Other Income (Expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative gains (losses), net
(131
)
 

 

 
(801
)
 
767

 
22

 
(143
)
Foreign currency gains (losses), net
1,429

 
147

 
(9
)
 

 
62

 
(108
)
 
1,521

Other, net
14,739

 
(38
)
 
(3,775
)
 
493

 
(4,838
)
 
(23
)
 
6,558

Equity in Earnings (Losses) of 50% or Less Owned Companies, Net of Tax
4,885

 
(3,747
)
 
2,317

 

 
(1,746
)
 

 
1,709

Segment Profit (Loss)
50,298

 
4,164

 
23,267

 
24,338

 
(12,862
)
 
 
 
 
Other Income (Expense) not included in Segment Profit (Loss)
 
 
 
 
 
 
 
 
 
(5,987
)
Less Equity Earnings included in Segment Profit (Loss)
 
 
 
 
 
 
 
 
 
(1,709
)
Income Before Taxes and Equity Earnings
 
 
 
 
 
 
 
58,906

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures
46,621

 
44,086

 
165,160

 
2,098

 
123

 
15,581

 
273,669

 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment:
 
 
 
 
 
 
 
 
 
 
 
 


Historical cost
1,154,174

 
519,586

 
451,123

 
44,808

 
3,760

 
43,176

 
2,216,627

Accumulated depreciation
(499,092
)
 
(161,091
)
 
(200,908
)
 
(13,369
)
 
(769
)
 
(13,213
)
 
(888,442
)
 
655,082

 
358,495

 
250,215

 
31,439

 
2,991

 
29,963

 
1,328,185

Construction in progress
91,824

 
32,175

 
171,204

 
2,156

 
224

 
(60
)
 
297,523

 
746,906

 
390,670

 
421,419

 
33,595

 
3,215

 
29,903

 
1,625,708

Investments, at Equity, and Advances to 50% or Less Owned Companies
129,775

 
61,653

 
205,110

 

 
87,626

 

 
484,164

Inventories
5,571

 
2,309

 
1,438

 
9,926

 
963

 

 
20,207

Goodwill
13,367

 
2,793

 
1,852

 

 

 

 
18,012

Intangible Assets
2,784

 
7,085

 
575

 

 
310

 

 
10,754

Other current and long-term assets, excluding cash and near cash assets(3)
154,188

 
55,819

 
19,816

 
13,559

 
49,232

 
18,642

 
311,256

Segment Assets
1,052,591

 
520,329

 
650,210

 
57,080

 
141,346

 
 
 
 
Cash and near cash assets(3)
 
 
 
 
 
 
 
 
 
 
 
 
825,892

Total Assets
 
 
 
 
 
 
 
 
 
 
 
 
3,295,993

______________________
(1)
Operating revenues includes $126.1 million of tangible product sales and operating expenses includes $98.2 million of costs of goods sold.
(2)
Inventories includes raw materials of $2.2 million and work in process of $1.3 million.
(3)
Cash and near cash assets includes cash, cash equivalents, restricted cash, marketable securities, construction reserve funds and Title XI reserve funds.

18

Table of Contents

 
Offshore
Marine
Services
$’000
 
Inland
River
Services
$’000
 
Shipping
Services
$’000
 
ICP
$’000
 
Other
$’000
 
Corporate
and
Eliminations
$’000
 
Total
$’000
For the three months ended
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
138,650

 
46,780

 
48,103

 
61,378

 
20,652

 

 
315,563

Intersegment
28

 
577

 

 

 

 
(605
)