Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | fti | |
Entity Registrant Name | FMC TECHNOLOGIES INC | |
Entity Central Index Key | 1,135,152 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 229,473,847 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Product revenue | $ 1,366.5 | $ 1,590.4 | $ 2,728.8 | $ 3,039.5 |
Service revenue | 255.5 | 314 | 522.2 | 616.4 |
Lease and other income | 73.2 | 80.9 | 139.4 | 153.8 |
Total revenue | 1,695.2 | 1,985.3 | 3,390.4 | 3,809.7 |
Costs and expenses: | ||||
Cost of product revenue | 1,053.8 | 1,227 | 2,083.9 | 2,341.5 |
Cost of service revenue | 193.7 | 226.3 | 400 | 451.8 |
Cost of lease and other revenue | 49.5 | 54.3 | 95.7 | 113.1 |
Selling, general and administrative expense | 164.3 | 188.4 | 338.3 | 371.2 |
Research and development expense | 36.2 | 29.4 | 65.8 | 54.7 |
Restructuring and impairment expense (Note 4) | 9.7 | 0.2 | 20.1 | 4.9 |
Total costs and expenses | 1,507.2 | 1,725.6 | 3,003.8 | 3,337.2 |
Gain on sale of Material Handling Products (Note 5) | 85.6 | 85.6 | ||
Other expense, net | (15.1) | (1.6) | (21.4) | (2.7) |
Income before net interest expense and income taxes | 172.9 | 343.7 | 365.2 | 555.4 |
Net interest expense | (9) | (8.3) | (16.3) | (16.5) |
Income before income taxes | 163.9 | 335.4 | 348.9 | 538.9 |
Provision for income taxes | 55.9 | 107.7 | 92.8 | 174.7 |
Net income | 108 | 227.7 | 256.1 | 364.2 |
Net income attributable to noncontrolling interests | (0.1) | (1.4) | (0.6) | (2.7) |
Net income attributable to FMC Technologies, Inc. | $ 107.9 | $ 226.3 | $ 255.5 | $ 361.5 |
Earnings per share attributable to FMC Technologies, Inc. (Note 3): | ||||
Basic | $ 0.46 | $ 0.96 | $ 1.10 | $ 1.53 |
Diluted | $ 0.46 | $ 0.95 | $ 1.10 | $ 1.52 |
Weighted average shares outstanding (Note 3): | ||||
Basic | 232.3 | 236.7 | 232.7 | 237 |
Diluted | 232.9 | 237.2 | 233.2 | 237.5 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Net income | $ 108 | $ 227.7 | $ 256.1 | $ 364.2 | |
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustments | [1] | 26.7 | 7.1 | (74.3) | 16.4 |
Net gains (losses) on hedging instruments: | |||||
Net gains (losses) arising during the period | 24.2 | (8.2) | (17.2) | (8.4) | |
Reclassification adjustment for net losses (gains) included in net income | 20.1 | (4.5) | 33.1 | (6.9) | |
Net gains (losses) on hedging instruments | [2] | 44.3 | (12.7) | 15.9 | (15.3) |
Pension and other post-retirement benefits: | |||||
Reclassification adjustment for amortization of prior service credit included in net income | (0.1) | ||||
Reclassification adjustment for amortization of net actuarial loss included in net income | 5.4 | 3.2 | 10.7 | 6 | |
Net pension and other post-retirement benefits | [3] | 5.4 | 3.2 | 10.7 | 5.9 |
Other comprehensive income (loss), net of tax | 76.4 | (2.4) | (47.7) | 7 | |
Comprehensive income | 184.4 | 225.3 | 208.4 | 371.2 | |
Comprehensive income attributable to noncontrolling interest | (0.1) | (1.4) | (0.6) | (2.7) | |
Comprehensive income attributable to FMC Technologies, Inc. | $ 184.3 | $ 223.9 | $ 207.8 | $ 368.5 | |
[1] | Net of income tax (expense) benefit of $(1.5) and $(0.2) for the three months ended June 30, 2015 and 2014, respectively, and $6.8 and $(1.2) for the six months ended June 30, 2015 and 2014, respectively. | ||||
[2] | Net of income tax (expense) benefit of $(13.4) and $2.9 for the three months ended June 30, 2015 and 2014, respectively, and $(3.6) and $(0.9) for the six months ended June 30, 2015 and 2014, respectively. | ||||
[3] | Net of income tax (expense) benefit of $(2.5) and $(1.5) for the three months ended June 30, 2015 and 2014, respectively, and $(5.0) and $(3.4) for the six months ended June 30, 2015 and 2014, respectively. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Foreign currency translation adjustments, tax (expense) benefit | $ (1.5) | $ (0.2) | $ 6.8 | $ (1.2) |
Net gains (losses) on hedging instruments, tax (expense) benefit | (13.4) | 2.9 | (3.6) | (0.9) |
Net pensions and other post-retirement benefits, tax (expense) benefit | $ (2.5) | $ (1.5) | $ (5) | $ (3.4) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 587.2 | $ 638.8 |
Trade receivables, net of allowances of $13.2 in 2015 and $9.4 in 2014 | 1,891.5 | 2,127 |
Inventories, net (Note 6) | 970.1 | 1,021.2 |
Derivative financial instruments (Note 14) | 236.8 | 197.6 |
Prepaid expenses | 72.9 | 48.5 |
Deferred income taxes | 83.7 | 70.8 |
Income taxes receivable | 42.8 | 23.4 |
Other current assets | 346.6 | 309.1 |
Total current assets | 4,231.6 | 4,436.4 |
Investments | 33.3 | 35.9 |
Property, plant and equipment, net of accumulated depreciation of $882.8 in 2015 and $833.4 in 2014 | 1,481.5 | 1,458.4 |
Goodwill | 540.1 | 552.1 |
Intangible assets, net of accumulated amortization of $130.5 in 2015 and $119.2 in 2014 | 267.5 | 282.9 |
Deferred income taxes | 115.9 | 106.5 |
Derivative financial instruments (Note 14) | 68.2 | 134.9 |
Other assets | 155.8 | 168.5 |
Total assets | 6,893.9 | 7,175.6 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt | 11.4 | 11.7 |
Accounts payable, trade | 601.7 | 723.5 |
Advance payments and progress billings | 787.3 | 965.2 |
Accrued payroll | 209.1 | 256.8 |
Derivative financial instruments (Note 14) | 355.2 | 230.2 |
Income taxes payable | 103.7 | 152.9 |
Deferred income taxes | 58.2 | 54.2 |
Other current liabilities | 374.5 | 389.1 |
Total current liabilities | 2,501.1 | 2,783.6 |
Long-term debt, less current portion (Note 8) | 1,275.2 | 1,297.2 |
Accrued pension and other post-retirement benefits, less current portion | 215.5 | 236.7 |
Derivative financial instruments (Note 14) | 109.1 | 220.2 |
Deferred income taxes | 75 | 54.3 |
Other liabilities | $ 102.5 | $ 105.9 |
Commitments and contingent liabilities (Note 16) | ||
Stockholders’ equity (Note 13): | ||
Preferred stock, $0.01 par value, 12.0 shares authorized in 2015 and 2014; no shares issued in 2015 or 2014 | $ 0 | $ 0 |
Common stock, $0.01 par value, 600.0 shares authorized in 2015 and 2014; 286.3 shares issued in 2015 and 2014; 229.8 and 231.5 shares outstanding in 2015 and 2014, respectively | 2.9 | 2.9 |
Common stock held in employee benefit trust, at cost; 0.2 shares in 2015 and 2014 | (7.3) | (8) |
Treasury stock, at cost; 56.4 and 54.6 shares in 2015 and 2014, respectively | (1,510.4) | (1,431.1) |
Capital in excess of par value of common stock | 744 | 731.9 |
Retained earnings | 4,099.8 | 3,844.3 |
Accumulated other comprehensive loss | (731.4) | (683.7) |
Total FMC Technologies, Inc. stockholders’ equity | 2,597.6 | 2,456.3 |
Noncontrolling interests | 17.9 | 21.4 |
Total equity | 2,615.5 | 2,477.7 |
Total liabilities and equity | $ 6,893.9 | $ 7,175.6 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Trade receivables, allowances | $ 13.2 | $ 9.4 |
Property, plant and equipment, accumulated depreciation | 882.8 | 833.4 |
Intangible assets, accumulated amortization | $ 130.5 | $ 119.2 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 12,000,000 | 12,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 286,300,000 | 286,300,000 |
Common stock, shares outstanding (in shares) | 229,800,000 | 231,500,000 |
Common stock, held in employee benefit trust (in shares) | 200,000 | 200,000 |
Treasury stock (in shares) | 56,395,000 | 54,626,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash provided (required) by operating activities: | ||
Net income | $ 256.1 | $ 364.2 |
Adjustments to reconcile net income to cash provided (required) by operating activities: | ||
Depreciation | 85.5 | 84.8 |
Amortization | 25.7 | 27.7 |
Employee benefit plan and stock-based compensation costs | 47.7 | 39.7 |
Unrealized loss on derivative instruments | 22.5 | 6.5 |
Deferred income tax provision | 8.2 | 5.4 |
Gain on sale of Material Handling Products | 85.6 | |
Other | 21.2 | 6.7 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Trade receivables, net | 143.1 | (42.9) |
Inventories, net | 29.6 | (59.2) |
Accounts payable, trade | (99.6) | (31.1) |
Advance payments and progress billings | (154.1) | 53.6 |
Income taxes payable, net | (63.4) | (33.8) |
Payment of Multi Phase Meters earn-out consideration | (41.5) | |
Accrued pension and other post-retirement benefits, net | (19) | (23.8) |
Other assets and liabilities, net | (67.8) | (34.9) |
Cash provided by operating activities | 235.7 | 235.8 |
Cash provided (required) by investing activities: | ||
Capital expenditures | (161.2) | (180) |
Proceeds from sale of Material Handling Products, net of cash divested | 106.8 | |
Other | 8.6 | 2.4 |
Cash required by investing activities | (152.6) | (70.8) |
Cash provided (required) by financing activities: | ||
Net increase (decrease) in short-term debt | 0.9 | (20.9) |
Net decrease in commercial paper | (17) | (43.5) |
Repayments of long-term debt | (1.4) | (2.6) |
Purchase of treasury stock | (91.6) | (72) |
Acquisitions, payment of withheld purchase price | (9.6) | |
Payments related to taxes withheld on stock-based compensation | (7.7) | (12.2) |
Excess tax benefits | 0.4 | 1.9 |
Payment of Multi Phase Meters earn-out consideration | (31) | |
Other | (3.3) | (2) |
Cash required by financing activities | (129.3) | (182.3) |
Effect of exchange rate changes on cash and cash equivalents | (5.4) | 0.4 |
Decrease in cash and cash equivalents | (51.6) | (16.9) |
Cash and cash equivalents, beginning of period | 638.8 | 399.1 |
Cash and cash equivalents, end of period | $ 587.2 | $ 382.2 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of FMC Technologies, Inc. and its consolidated subsidiaries (“FMC Technologies”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Prior to 2015, the income taxes financial statement line item in cash provided by operating activities on the condensed consolidated statements of cash flows historically included changes during the reporting period attributable to income taxes receivables and payables and current and deferred income tax assets and liabilities. Beginning in the first quarter of 2015, amounts attributable to current and deferred income tax assets and liabilities are now presented in the other assets and liabilities, net financial statement line item. All prior-year amounts have been revised to conform to the current year presentation. Our accounting policies are in accordance with GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates. In the opinion of management, the statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these statements may not be representative of the results that may be expected for the year ending December 31, 2015 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards Effective January 1, 2015, we adopted Accounting Standards Update (“ASU”) No. 2015-01, “ Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ” which eliminates from GAAP the concept of extraordinary items. However, the presentation and disclosure guidance for items that are unusual in nature or infrequent in occurrence was retained. We adopted the updated guidance prospectively. The adoption of this update concerns presentation and disclosure only as it relates to our condensed consolidated financial statements. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers. ” This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU will supersede most existing GAAP related to revenue recognition and will supersede some cost guidance in existing GAAP related to construction-type and production-type contract accounting. Additionally, the ASU will significantly increase disclosures related to revenue recognition. In July 2015, the FASB deferred the effective date of this ASU, and as a result, the amendments are now effective for us on January 1, 2018. Early adoption is permitted to the original effective date of January 1, 2017. Entities are permitted to apply the amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. We have not determined the method to be utilized upon adoption. The impacts that adoption of the ASU is expected to have on our consolidated financial statements and related disclosures are being evaluated. Additionally, we have not determined the effect of the ASU on our internal control over financial reporting or other changes in business practices and processes. In February 2015, the FASB issued ASU No. 2015-02, “ Amendments to the Consolidation Analysis.” This update amends the criteria for determining whether a limited partnership or similar entity is a variable interest entity, eliminates the presumption in the voting model that a general partner controls a limited partnership, eliminates the deferral of ASU 2009-17 for investments in certain investment funds, removes three of the six criteria a fee must meet for a decision maker or service provider to conclude a fee does not represent a variable interest, alters how variable interests held by related parties affect consolidation, and clarifies the two-step process to determine whether the at-risk equity holders of a corporation have the power to direct the corporation’s significant activities. The amendments in this ASU are effective for us on January 1, 2016. Early application is permitted. We believe the adoption of this guidance will not have a material impact on our consolidated financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-03, “ Simplifying the Presentation of Debt Issuance Costs. ” This update requires debt issuance costs to be presented in the balance sheet as a deduction from the carrying amount of the corresponding debt liability, consistent with debt discounts or premiums. The amendments in this ASU are effective for us on January 1, 2016. Early application is permitted, and a retrospective application is required. We believe the adoption of this guidance will not have a material impact on our consolidated financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-05, “ Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ” This update provides guidance on the recognition of fees paid by a customer for cloud computing arrangements as either the acquisition of a software license or a service contract. The amendments in this ASU are effective for us on January 1, 2016. Early application is permitted. Entities may apply the new guidance either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. We are currently evaluating the impact of this ASU on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, “ Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ” This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and removes certain related disclosure requirements. The amendments in this ASU are effective for us on January 1, 2016. Early application is permitted. We believe the adoption of this guidance concerns disclosure only and will not have an impact on our consolidated financial position or results of operations. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share data) 2015 2014 2015 2014 Net income attributable to FMC Technologies, Inc. $ 107.9 $ 226.3 $ 255.5 $ 361.5 Weighted average number of shares outstanding 232.3 236.7 232.7 237.0 Dilutive effect of restricted stock units and stock options 0.6 0.5 0.5 0.5 Total shares and dilutive securities 232.9 237.2 233.2 237.5 Basic earnings per share attributable to FMC Technologies, Inc. $ 0.46 $ 0.96 $ 1.10 $ 1.53 Diluted earnings per share attributable to FMC Technologies, Inc. $ 0.46 $ 0.95 $ 1.10 $ 1.52 |
Restructuring and other charges
Restructuring and other charges | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure | RESTRUCTURING AND OTHER CHARGES As a result of the downturn in the energy market and its corresponding impact on our businesses, we initiated a company-wide reduction in workforce intended to reduce costs and better align our workforce with activity levels, which resulted in the recognition of severance costs relating to termination benefits and other restructuring charges. Restructuring and impairment expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Restructuring expense $ 9.3 $ 0.2 $ 15.9 $ 4.9 Impairment expense 0.4 — 4.2 — Total restructuring and other charges $ 9.7 $ 0.2 $ 20.1 $ 4.9 |
Sale of Material Handling Produ
Sale of Material Handling Products | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Material Handling Products | SALE OF MATERIAL HANDLING PRODUCTS On April 30, 2014, we completed the sale of our equity interests of Technisys, Inc., a Utah corporation, and FMC Technologies Energy Holdings Ltd., a private limited liability company organized under the laws of Hong Kong, and assets primarily representing a product line of our material handling business (“Material Handling Products”) to Syntron Material Handling, LLC, an affiliate of Levine Leichtman Capital Partners Private Capital Solutions II, L.P. Material Handling Products was historically reported in our Energy Infrastructure segment. We recognized a pretax gain of $85.6 million on the sale during the three months ended June 30, 2014. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (In millions) June 30, December 31, Raw materials $ 185.8 $ 196.6 Work in process 149.3 166.1 Finished goods 830.6 849.9 1,165.7 1,212.6 LIFO and valuation adjustments (195.6 ) (191.4 ) Inventories, net $ 970.1 $ 1,021.2 |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | EQUITY METHOD INVESTMENTS FMC Technologies Offshore, LLC (“FTO Services”) is an affiliated company in the form of a joint venture between FMC Technologies and Edison Chouest Offshore LLC. FTO Services provides integrated vessel-based subsea services for offshore oil and gas fields globally, and its results are reported in our Subsea Technologies segment. Our cumulative cash investment in FTO Services totaled $5.0 million as of June 30, 2015. We have accounted for our 50% investment using the equity method of accounting. Additionally, debt obligations under a revolving credit facility of FTO Services are jointly and severally guaranteed by FMC Technologies and Edison Chouest Offshore LLC. Refer to Note 16 for additional information regarding the guarantee. FTO Services has experienced net losses since formation due to expenses related to startup of operations and as a result of the downturn in the oilfield services industry. We recognized $10.1 million and $18.4 million of losses from equity earnings in affiliates for the three and six months ended June 30, 2015, which are included in lease and other income in the accompanying condensed consolidated statements of income. All prior year results were not material. The carrying value of our equity method investment in FTO Services was $(20.0) million as of June 30, 2015, and is included as a component of other liabilities in the accompanying condensed consolidated balance sheets. As a result of our joint guarantee of FTO Services’ debt obligations under its revolving credit facility, we recognized losses up to our joint share of such obligations and suspended equity method accounting during the three months ended June 30, 2015. As of June 30, 2015, approximately $3.0 million of losses from equity in earnings of affiliates were not recognized. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Debt | DEBT Long-term debt consisted of the following: (In millions) June 30, December 31, Revolving credit facility $ — $ — Commercial paper (1) 452.1 469.1 2.00% Notes due 2017 299.7 299.6 3.45% Notes due 2022 499.7 499.7 Term loan 19.3 22.9 Property financing 7.0 9.7 Total long-term debt 1,277.8 1,301.0 Less: current portion (2.6 ) (3.8 ) Long-term debt, less current portion $ 1,275.2 $ 1,297.2 _______________________ (1) Committed credit available under our revolving credit facility provided the ability to refinance our commercial paper obligations on a long-term basis. As we have both the ability and intent to refinance these obligations on a long-term basis, our commercial paper borrowings were classified as long-term in the condensed consolidated balance sheets at June 30, 2015 and December 31, 2014. As of June 30, 2015, our commercial paper borrowings had a weighted average interest rate of 0.56% . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our income tax provisions for the three months ended June 30, 2015 and 2014, reflected effective tax rates of 34.1% and 32.2% , respectively. The year-over-year increase in the effective tax rate was primarily due to a settlement of an Internal Revenue Service (“IRS”) audit, partially offset by a favorable change in the forecasted country mix of earnings. Our income tax provisions for the six months ended June 30, 2015 and 2014, reflected effective tax rates of 26.6% and 32.6% , respectively. The year-over-year decrease in the effective tax rate was primarily due to a favorable change in the forecasted country mix of earnings and an increase in earnings from foreign operations indefinitely reinvested outside the United States, partially offset by a settlement of an IRS audit. As of January 1, 2015, we changed our position on earnings from foreign operations as indefinitely reinvested due to increased cash demands outside the United States. Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to lower tax rates than in the United States. In certain jurisdictions, primarily Singapore and Malaysia, our tax rate is significantly less than the relevant statutory rate due to tax holidays. |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | WARRANTY OBLIGATIONS Warranty cost and accrual information was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Balance at beginning of period $ 24.1 $ 18.9 $ 23.0 $ 18.0 Expense for new warranties 8.7 5.5 16.4 10.9 Adjustments to existing accruals 0.5 0.2 2.1 0.6 Claims paid (6.7 ) (5.2 ) (14.9 ) (10.1 ) Balance at end of period $ 26.6 $ 19.4 $ 26.6 $ 19.4 |
Pension And Other Post-retireme
Pension And Other Post-retirement Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension And Other Post-retirement Benefits | PENSION AND OTHER POST-RETIREMENT BENEFITS The components of net periodic benefit cost were as follows: Pension Benefits Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l Service cost $ 3.6 $ 4.1 $ 3.5 $ 4.3 $ 7.3 $ 8.2 $ 6.9 $ 8.6 Interest cost 6.6 3.7 7.3 4.7 13.2 7.4 14.6 9.4 Expected return on plan assets (11.0 ) (7.0 ) (11.6 ) (7.7 ) (22.0 ) (13.9 ) (23.2 ) (15.3 ) Amortization of prior service cost (credit) — — — 0.1 — — — 0.1 Amortization of actuarial loss (gain), net 4.9 3.2 3.0 1.7 9.8 6.4 6.1 3.4 Net periodic benefit cost $ 4.1 $ 4.0 $ 2.2 $ 3.1 $ 8.3 $ 8.1 $ 4.4 $ 6.2 Other Post-retirement Benefits Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Interest cost $ 0.1 $ 0.1 0.2 0.2 Amortization of actuarial loss (gain), net — — — (0.1 ) Net periodic benefit cost $ 0.1 $ 0.1 $ 0.2 $ 0.1 During the six months ended June 30, 2015, we contributed $5.8 million to our domestic pension benefit plans and $12.9 million to our international pension benefit plans. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION Under the Amended and Restated FMC Technologies, Inc. Incentive Compensation and Stock Plan (the “Plan”), we have primarily granted awards in the form of nonvested stock units (also known as restricted stock units in the plan document). We recognize compensation expense and the corresponding tax benefits for awards under the Plan. Stock-based compensation expense for nonvested stock units was $11.8 million and $9.9 million for the three months ended June 30, 2015 and 2014, respectively, and $31.6 million and $27.8 million for the six months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015, we granted the following restricted stock units to employees: (Number of restricted stock shares in thousands) Shares Weighted- Average Grant Date Fair Value (per share) Time-based 931 Performance-based 246 * Market-based 123 * Total granted 1,300 $ 39.77 _______________________ * Assumes grant date expected payout For current-year performance-based awards, actual payouts may vary from zero to 492 thousand shares, contingent upon our performance relative to a peer group of companies with respect to earnings growth and return on investment for the year ending December 31, 2015. Compensation cost is measured based on the current expected outcome of the performance conditions and may be adjusted until the performance period ends. For current-year market-based awards, actual payouts may vary from zero to 246 thousand shares, contingent upon our performance relative to the same peer group of companies with respect to total shareholder return (“TSR”) for a three year period ending December 31, 2017. The payout for the TSR metric is determined based on our performance relative to the peer group. A payout is possible regardless of whether our TSR for the three year period is positive or negative. However, if our TSR for the three year period is not positive, the payout with respect to TSR is limited to the target previously established by the Compensation Committee of the Board of Directors. Compensation cost for these awards is calculated using the grant date fair market value, as estimated using a Monte Carlo simulation, and is not subject to change based on future events. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY There were no cash dividends declared during the three and six months ended June 30, 2015 and 2014. The following is a summary of our treasury stock activity for the six months ended June 30, 2015 and 2014 : (Number of shares in thousands) Treasury Stock Balance as of December 31, 2013 50,318 Stock awards (478 ) Treasury stock purchases 1,369 Balance as of June 30, 2014 51,209 Balance as of December 31, 2014 54,626 Stock awards (466 ) Treasury stock purchases 2,235 Balance as of June 30, 2015 56,395 We repurchased $91.6 million and $72.0 million of common stock during the six months ended June 30, 2015 and June 30, 2014 , respectively, under the authorized repurchase program. In February 2015, the Board of Directors authorized an extension of our repurchase program by 15.0 million shares. As of June 30, 2015, our Board of Directors had authorized 90.0 million shares of common stock under our share repurchase program, and approximately 20.8 million shares of common stock remained available for purchase, which may be executed from time to time in the open market. We intend to hold repurchased shares in treasury for general corporate purposes, including issuances under our stock-based compensation plan. Treasury shares are accounted for using the cost method. Accumulated other comprehensive loss consisted of the following: (In millions) Foreign Currency Translation Hedging Defined Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss December 31, 2014 $ (311.9 ) $ (77.3 ) $ (294.5 ) $ (683.7 ) Other comprehensive income (loss) before reclassifications, net of tax (74.3 ) (17.2 ) — (91.5 ) Reclassification adjustment for net losses (gains) included in net income, net of tax — 33.1 10.7 43.8 Other comprehensive income (loss), net of tax (74.3 ) 15.9 10.7 (47.7 ) June 30, 2015 $ (386.2 ) $ (61.4 ) $ (283.8 ) $ (731.4 ) Reclassifications out of accumulated other comprehensive loss consisted of the following: Three Months Ended Six Months Ended (In millions) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified out of Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statement of Income Gains (losses) on hedging instruments Foreign exchange contracts: $ (35.3 ) $ (4.3 ) $ (61.7 ) $ (14.8 ) Revenue 7.5 9.0 19.0 20.3 Cost of sales (0.4 ) 0.1 (0.9 ) — Selling, general and administrative expense (0.1 ) — (0.1 ) — Research and development expense 1.9 — 1.9 — Net interest expense (26.4 ) 4.8 (41.8 ) 5.5 Income before income taxes 6.3 (0.3 ) 8.7 1.4 Income tax (expense) benefit $ (20.1 ) $ 4.5 $ (33.1 ) $ 6.9 Net income Defined pension and other post-retirement benefits Amortization of actuarial gain (loss) $ (7.9 ) $ (4.6 ) $ (15.7 ) $ (9.3 ) (a) Amortization of prior service credit (cost) — — — 0.1 (a) (7.9 ) (4.6 ) (15.7 ) (9.2 ) Income before income taxes 2.5 1.4 5.0 3.3 Income tax (expense) benefit $ (5.4 ) $ (3.2 ) $ (10.7 ) $ (5.9 ) Net income _______________________ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We hold derivative financial instruments for the purpose of hedging the risks of certain identifiable and anticipated transactions. The types of risks hedged are those relating to the variability of future earnings and cash flows caused by movements in foreign currency exchange rates. We hold the following types of derivative instruments: Foreign exchange rate forward contracts —The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies. At June 30, 2015, we held the following material positions: Notional Amount Bought (Sold) (In millions) USD Equivalent Australian dollar 31.9 24.6 Brazilian real 167.5 53.4 British pound 75.0 118.1 Canadian dollar (184.3 ) (148.1 ) Euro 153.6 172.0 Kuwaiti dinar (5.3 ) (17.5 ) Malaysian ringgit 85.8 22.7 Norwegian krone 3,062.0 390.5 Russian ruble 882.6 15.9 Singapore dollar 138.0 102.5 Swiss franc 14.1 15.1 U.S. dollar (934.8 ) (934.8 ) Foreign exchange rate instruments embedded in purchase and sale contracts —The purpose of these instruments is to match offsetting currency payments and receipts for particular projects, or comply with government restrictions on the currency used to purchase goods in certain countries. At June 30, 2015, our portfolio of these instruments included the following material positions: Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (56.4 ) (18.0 ) Euro 13.6 15.2 Norwegian krone (175.8 ) (22.4 ) U.S. dollar 24.2 24.2 The purpose of our foreign currency hedging activities is to manage the volatility associated with anticipated foreign currency purchases and sales created in the normal course of business. Our policy is to hold derivatives only for the purpose of hedging risks and not for trading purposes where the objective is solely to generate profit. Generally, we enter into hedging relationships such that changes in the fair values or cash flows of the transactions being hedged are expected to be offset by corresponding changes in the fair value of the derivatives. For derivative instruments that qualify as a cash flow hedge, the effective portion of the gain or loss of the derivative, which does not include the time value component of a forward currency rate, is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The following table of all outstanding derivative instruments is based on estimated fair value amounts that have been determined using available market information and commonly accepted valuation methodologies. Refer to Note 15 for further disclosures related to the fair value measurement process. Accordingly, the estimates may not be indicative of the gains or losses we may ultimately incur when these contracts settle or mature. June 30, 2015 December 31, 2014 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 222.2 $ 340.6 $ 172.1 $ 207.1 Long-term – Derivative financial instruments 62.9 102.6 129.4 214.6 Total derivatives designated as hedging instruments 285.1 443.2 301.5 421.7 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 14.6 14.6 25.5 23.1 Long-term – Derivative financial instruments 5.3 6.5 5.5 5.6 Total derivatives not designated as hedging instruments 19.9 21.1 31.0 28.7 Total derivatives $ 305.0 $ 464.3 $ 332.5 $ 450.4 We recognized losses of $3.7 million and $0.5 million on cash flow hedges for the three months ended June 30, 2015 and 2014, respectively, and losses of $4.6 million and $0.5 million for the six months ended June 30, 2015 and 2014, respectively, as a result of the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would not occur or would not occur by the originally specified time period. Cash flow hedges of forecasted transactions, net of tax, resulted in an accumulated other comprehensive loss of $61.4 million and $77.3 million at June 30, 2015, and December 31, 2014, respectively. We expect to transfer an approximate $36.7 million loss from accumulated OCI to earnings during the next 12 months when the anticipated transactions actually occur. All anticipated transactions currently being hedged are expected to occur by the end of 2016 . The following tables present the impact of derivative instruments in cash flow hedging relationships and their location within the accompanying condensed consolidated statements of income. Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts $ 31.3 $ (10.8 ) (22.3 ) (8.9 ) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ (35.3 ) $ (4.3 ) $ (61.7 ) $ (14.8 ) Cost of sales 7.5 9.0 19.0 20.3 Selling, general and administrative expense (0.4 ) 0.1 (0.9 ) — Research and development expense (0.1 ) — (0.1 ) — Net interest expense 1.9 — 1.9 — Total $ (26.4 ) $ 4.8 $ (41.8 ) $ 5.5 Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ 6.4 $ 4.1 $ 6.9 $ 8.7 Cost of sales (4.5 ) (9.4 ) (10.3 ) (13.1 ) Net interest expense (0.1 ) — (0.1 ) — Total $ 1.8 $ (5.3 ) $ (3.5 ) $ (4.4 ) Instruments that are not designated as hedging instruments are executed to hedge the effect of exposures in the condensed consolidated balance sheets, and occasionally, forward foreign currency contracts or currency options are executed to hedge exposures which do not meet all of the criteria to qualify for hedge accounting. Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ (3.8 ) $ (1.0 ) $ (5.3 ) $ (2.0 ) Cost of sales 1.4 (0.2 ) 1.5 0.3 Other income (expense), net (1) (6.9 ) (5.9 ) 21.0 (2.3 ) Total $ (9.3 ) $ (7.1 ) $ 17.2 $ (4.0 ) _______________________ (1) Other income (expense), net excludes asset and liability remeasurement gains and losses. Balance Sheet Offsetting —We execute derivative contracts only with counterparties that consent to a master netting agreement which permits net settlement of the gross derivative assets against gross derivative liabilities. Each instrument is accounted for individually and assets and liabilities are not offset. As of June 30, 2015, and December 31, 2014, we had no collateralized derivative contracts. The following tables present both gross information and net information of recognized derivative instruments: June 30, 2015 December 31, 2014 (In millions) Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Derivative assets $ 305.0 $ (288.2 ) $ 16.8 $ 332.5 $ (321.5 ) $ 11.0 June 30, 2015 December 31, 2014 (In millions) Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Derivative liabilities $ 464.3 $ (288.2 ) $ 176.1 $ 450.4 $ (321.5 ) $ 128.9 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements on a Recurring Basis | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2015 December 31, 2014 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments: Equity securities $ 19.9 $ 19.9 $ — $ — $ 22.5 $ 22.5 $ — $ — Fixed income 5.5 5.5 — — 7.1 7.1 — — Money market fund 3.1 — 3.1 — 3.4 — 3.4 — Stable value fund 1.3 — 1.3 — 0.7 — 0.7 — Other 2.0 2.0 — — 2.1 2.1 — — Derivative financial instruments: Foreign exchange contracts 305.0 — 305.0 — 332.5 — 332.5 — Total assets $ 336.8 $ 27.4 $ 309.4 $ — $ 368.3 $ 31.7 $ 336.6 $ — Liabilities Derivative financial instruments: Foreign exchange contracts 464.3 — 464.3 — 450.4 — 450.4 — Total liabilities $ 464.3 $ — $ 464.3 $ — $ 450.4 $ — $ 450.4 $ — Investments— The fair value measurement of our equity securities, fixed income and other investment assets is based on quoted prices that we have the ability to access in public markets. Our stable value fund and money market fund are valued at the net asset value of the shares held at the end of the quarter, which is based on the fair value of the underlying investments using information reported by the investment advisor at quarter-end. Derivative financial instruments— We use the income approach as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used. Our credit spread, and the credit spread of other counterparties not publicly available are approximated by using the spread of similar companies in the same industry, of similar size and with the same credit rating. At the present time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. See Note 14 for additional disclosure related to derivative financial instruments. Fair value of debt —The fair value, based on Level 1 quoted market rates, of our 2.00% Notes due 2017 and 3.45% Notes due 2022 (collectively, “Senior Notes”) was approximately $781.3 million at June 30, 2015 and approximately $779.5 million at December 31, 2014 , as compared to the $800.0 million face value of the debt, net of issue discounts, recorded in the condensed consolidated balance sheets. Other fair value disclosures— The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, commercial paper, debt associated with our term loan, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value. Credit risk— By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectability assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement which permits the net settlement of gross derivative assets against gross derivative liabilities. |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Contingent liabilities associated with guarantees— In the ordinary course of business with customers, vendors and others, we issue standby letters of credit, performance bonds, surety bonds and other guarantees. The majority of these financial instruments represent guarantees of our future performance. In August 2014, FMC Technologies entered into an arrangement to guarantee the debt obligations under a revolving credit facility of FMC Technologies Offshore, LLC (“FTO Services”), our joint venture with Edison Chouest Offshore LLC. Under the terms of the guarantee, FMC Technologies and Edison Chouest Offshore LLC jointly and severally guaranteed amounts under the revolving credit facility with a maximum potential amount of future payments of $40.0 million that would become payable if FTO Services defaults in payment under the terms of the revolving credit facility. The approximate term of the guarantee is two years. The liability recognized at inception for the fair value of our obligation as a guarantor was not material, and we expect our future performance under the guarantee to be remote. Management does not expect any of these financial instruments to result in losses that, if incurred, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Contingent liabilities associated with legal matters— We are involved in various pending or potential legal actions in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of litigation. However, management believes that the most probable, ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Contingent liabilities associated with liquidated damages— Some of our contracts contain penalty provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a conforming claim under these provisions. These contracts define the conditions under which our customers may make claims against us for liquidated damages. Based upon the evaluation of our performance and other commercial and legal analysis, management believes we have appropriately accrued for probable liquidated damages at June 30, 2015, and December 31, 2014, and that the ultimate resolution of such matters will not materially affect our consolidated financial position, results of operations or cash flows for the year ending December 31, 2015 . |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Segment revenue and segment operating profit were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Segment revenue Subsea Technologies (5) $ 1,239.4 $ 1,328.6 $ 2,396.6 $ 2,530.6 Surface Technologies 363.3 510.9 809.6 990.4 Energy Infrastructure 101.4 149.2 202.3 294.7 Other revenue (1) and intercompany eliminations (8.9 ) (3.4 ) (18.1 ) (6.0 ) Total revenue $ 1,695.2 $ 1,985.3 $ 3,390.4 $ 3,809.7 Income before income taxes: Segment operating profit : Subsea Technologies (5) $ 183.5 $ 193.7 $ 352.2 $ 335.4 Surface Technologies 27.5 79.2 90.4 167.1 Energy Infrastructure 5.3 18.2 8.2 33.7 Intercompany eliminations — — — (0.1 ) Total segment operating profit 216.3 291.1 450.8 536.1 Corporate items: Corporate expense (2) (14.0 ) (16.8 ) (30.3 ) (31.7 ) Other revenue (1) and other expense, net (3) (29.5 ) 68.0 (55.9 ) 48.3 Net interest expense (9.0 ) (8.3 ) (16.3 ) (16.5 ) Total corporate items (52.5 ) 42.9 (102.5 ) 0.1 Income before income taxes attributable to FMC Technologies, Inc. (4) $ 163.8 $ 334.0 $ 348.3 $ 536.2 _______________________ (1) Other revenue comprises certain unrealized gains and losses on derivative instruments related to unexecuted sales contracts. (2) Corporate expense primarily includes corporate staff expenses. (3) Other expense, net, generally includes stock-based compensation, other employee benefits, LIFO adjustments, certain foreign exchange gains and losses, and the impact of unusual or strategic transactions not representative of segment operations. (4) Excludes amounts attributable to noncontrolling interests. (5) Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. Segment operating capital employed and assets were as follows: (In millions) June 30, 2015 December 31, 2014 Segment operating capital employed (1) : Subsea Technologies (4) $ 2,287.9 $ 2,175.2 Surface Technologies 1,130.1 1,183.6 Energy Infrastructure 316.0 313.9 Total segment operating capital employed 3,734.0 3,672.7 Segment liabilities included in total segment operating capital employed (2) 2,077.0 2,402.3 Corporate (3) 1,082.9 1,100.6 Total assets $ 6,893.9 $ 7,175.6 Segment assets: Subsea Technologies (4) $ 3,999.8 $ 4,066.1 Surface Technologies 1,406.0 1,587.8 Energy Infrastructure 426.3 442.3 Intercompany eliminations (21.1 ) (21.2 ) Total segment assets 5,811.0 6,075.0 Corporate (3) 1,082.9 1,100.6 Total assets $ 6,893.9 $ 7,175.6 _______________________ (1) FMC Technologies’ management views segment operating capital employed, which consists of assets, net of its liabilities, as the primary measure of segment capital. Segment operating capital employed excludes debt, pension liabilities, income taxes, and LIFO and valuation adjustments. (2) Segment liabilities included in total segment operating capital employed consist of trade and other accounts payable, advance payments and progress billings, accrued payroll and other liabilities. (3) Corporate includes cash, LIFO adjustments, deferred income tax balances, property, plant and equipment not associated with a specific segment, pension assets and the fair value of derivative financial instruments. (4) Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements of FMC Technologies, Inc. and its consolidated subsidiaries (“FMC Technologies”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2014 . |
Reclassifications | Prior to 2015, the income taxes financial statement line item in cash provided by operating activities on the condensed consolidated statements of cash flows historically included changes during the reporting period attributable to income taxes receivables and payables and current and deferred income tax assets and liabilities. Beginning in the first quarter of 2015, amounts attributable to current and deferred income tax assets and liabilities are now presented in the other assets and liabilities, net financial statement line item. All prior-year amounts have been revised to conform to the current year presentation. |
Use Of Estimates | Our accounting policies are in accordance with GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates. In the opinion of management, the statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these statements may not be representative of the results that may be expected for the year ending December 31, 2015 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Basic And Diluted EPS | A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share data) 2015 2014 2015 2014 Net income attributable to FMC Technologies, Inc. $ 107.9 $ 226.3 $ 255.5 $ 361.5 Weighted average number of shares outstanding 232.3 236.7 232.7 237.0 Dilutive effect of restricted stock units and stock options 0.6 0.5 0.5 0.5 Total shares and dilutive securities 232.9 237.2 233.2 237.5 Basic earnings per share attributable to FMC Technologies, Inc. $ 0.46 $ 0.96 $ 1.10 $ 1.53 Diluted earnings per share attributable to FMC Technologies, Inc. $ 0.46 $ 0.95 $ 1.10 $ 1.52 |
Restructuring and other charg27
Restructuring and other charges (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and impairment expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Restructuring expense $ 9.3 $ 0.2 $ 15.9 $ 4.9 Impairment expense 0.4 — 4.2 — Total restructuring and other charges $ 9.7 $ 0.2 $ 20.1 $ 4.9 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Components Of Inventories | Inventories consisted of the following: (In millions) June 30, December 31, Raw materials $ 185.8 $ 196.6 Work in process 149.3 166.1 Finished goods 830.6 849.9 1,165.7 1,212.6 LIFO and valuation adjustments (195.6 ) (191.4 ) Inventories, net $ 970.1 $ 1,021.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Long-Term debt | Long-term debt consisted of the following: (In millions) June 30, December 31, Revolving credit facility $ — $ — Commercial paper (1) 452.1 469.1 2.00% Notes due 2017 299.7 299.6 3.45% Notes due 2022 499.7 499.7 Term loan 19.3 22.9 Property financing 7.0 9.7 Total long-term debt 1,277.8 1,301.0 Less: current portion (2.6 ) (3.8 ) Long-term debt, less current portion $ 1,275.2 $ 1,297.2 _______________________ (1) Committed credit available under our revolving credit facility provided the ability to refinance our commercial paper obligations on a long-term basis. As we have both the ability and intent to refinance these obligations on a long-term basis, our commercial paper borrowings were classified as long-term in the condensed consolidated balance sheets at June 30, 2015 and December 31, 2014. As of June 30, 2015, our commercial paper borrowings had a weighted average interest rate of 0.56% . |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranty Cost And Accrual Information | Warranty cost and accrual information was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Balance at beginning of period $ 24.1 $ 18.9 $ 23.0 $ 18.0 Expense for new warranties 8.7 5.5 16.4 10.9 Adjustments to existing accruals 0.5 0.2 2.1 0.6 Claims paid (6.7 ) (5.2 ) (14.9 ) (10.1 ) Balance at end of period $ 26.6 $ 19.4 $ 26.6 $ 19.4 |
Pension And Other Post-retire31
Pension And Other Post-retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost were as follows: Pension Benefits Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l Service cost $ 3.6 $ 4.1 $ 3.5 $ 4.3 $ 7.3 $ 8.2 $ 6.9 $ 8.6 Interest cost 6.6 3.7 7.3 4.7 13.2 7.4 14.6 9.4 Expected return on plan assets (11.0 ) (7.0 ) (11.6 ) (7.7 ) (22.0 ) (13.9 ) (23.2 ) (15.3 ) Amortization of prior service cost (credit) — — — 0.1 — — — 0.1 Amortization of actuarial loss (gain), net 4.9 3.2 3.0 1.7 9.8 6.4 6.1 3.4 Net periodic benefit cost $ 4.1 $ 4.0 $ 2.2 $ 3.1 $ 8.3 $ 8.1 $ 4.4 $ 6.2 Other Post-retirement Benefits Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Interest cost $ 0.1 $ 0.1 0.2 0.2 Amortization of actuarial loss (gain), net — — — (0.1 ) Net periodic benefit cost $ 0.1 $ 0.1 $ 0.2 $ 0.1 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Restricted Stock Units Granted Disclosure | During the six months ended June 30, 2015, we granted the following restricted stock units to employees: (Number of restricted stock shares in thousands) Shares Weighted- Average Grant Date Fair Value (per share) Time-based 931 Performance-based 246 * Market-based 123 * Total granted 1,300 $ 39.77 _______________________ * Assumes grant date expected payout |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Treasury stock activity | The following is a summary of our treasury stock activity for the six months ended June 30, 2015 and 2014 : (Number of shares in thousands) Treasury Stock Balance as of December 31, 2013 50,318 Stock awards (478 ) Treasury stock purchases 1,369 Balance as of June 30, 2014 51,209 Balance as of December 31, 2014 54,626 Stock awards (466 ) Treasury stock purchases 2,235 Balance as of June 30, 2015 56,395 |
Accumulated other comprehensive loss | Accumulated other comprehensive loss consisted of the following: (In millions) Foreign Currency Translation Hedging Defined Pension and Other Post-retirement Benefits Accumulated Other Comprehensive Loss December 31, 2014 $ (311.9 ) $ (77.3 ) $ (294.5 ) $ (683.7 ) Other comprehensive income (loss) before reclassifications, net of tax (74.3 ) (17.2 ) — (91.5 ) Reclassification adjustment for net losses (gains) included in net income, net of tax — 33.1 10.7 43.8 Other comprehensive income (loss), net of tax (74.3 ) 15.9 10.7 (47.7 ) June 30, 2015 $ (386.2 ) $ (61.4 ) $ (283.8 ) $ (731.4 ) |
Reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive loss consisted of the following: Three Months Ended Six Months Ended (In millions) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified out of Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statement of Income Gains (losses) on hedging instruments Foreign exchange contracts: $ (35.3 ) $ (4.3 ) $ (61.7 ) $ (14.8 ) Revenue 7.5 9.0 19.0 20.3 Cost of sales (0.4 ) 0.1 (0.9 ) — Selling, general and administrative expense (0.1 ) — (0.1 ) — Research and development expense 1.9 — 1.9 — Net interest expense (26.4 ) 4.8 (41.8 ) 5.5 Income before income taxes 6.3 (0.3 ) 8.7 1.4 Income tax (expense) benefit $ (20.1 ) $ 4.5 $ (33.1 ) $ 6.9 Net income Defined pension and other post-retirement benefits Amortization of actuarial gain (loss) $ (7.9 ) $ (4.6 ) $ (15.7 ) $ (9.3 ) (a) Amortization of prior service credit (cost) — — — 0.1 (a) (7.9 ) (4.6 ) (15.7 ) (9.2 ) Income before income taxes 2.5 1.4 5.0 3.3 Income tax (expense) benefit $ (5.4 ) $ (3.2 ) $ (10.7 ) $ (5.9 ) Net income _______________________ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Foreign exchange rate instruments embedded in purchase and sale contracts —The purpose of these instruments is to match offsetting currency payments and receipts for particular projects, or comply with government restrictions on the currency used to purchase goods in certain countries. At June 30, 2015, our portfolio of these instruments included the following material positions: Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (56.4 ) (18.0 ) Euro 13.6 15.2 Norwegian krone (175.8 ) (22.4 ) U.S. dollar 24.2 24.2 Foreign exchange rate forward contracts —The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies. At June 30, 2015, we held the following material positions: Notional Amount Bought (Sold) (In millions) USD Equivalent Australian dollar 31.9 24.6 Brazilian real 167.5 53.4 British pound 75.0 118.1 Canadian dollar (184.3 ) (148.1 ) Euro 153.6 172.0 Kuwaiti dinar (5.3 ) (17.5 ) Malaysian ringgit 85.8 22.7 Norwegian krone 3,062.0 390.5 Russian ruble 882.6 15.9 Singapore dollar 138.0 102.5 Swiss franc 14.1 15.1 U.S. dollar (934.8 ) (934.8 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | June 30, 2015 December 31, 2014 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 222.2 $ 340.6 $ 172.1 $ 207.1 Long-term – Derivative financial instruments 62.9 102.6 129.4 214.6 Total derivatives designated as hedging instruments 285.1 443.2 301.5 421.7 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 14.6 14.6 25.5 23.1 Long-term – Derivative financial instruments 5.3 6.5 5.5 5.6 Total derivatives not designated as hedging instruments 19.9 21.1 31.0 28.7 Total derivatives $ 305.0 $ 464.3 $ 332.5 $ 450.4 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts $ 31.3 $ (10.8 ) (22.3 ) (8.9 ) |
Derivative Instruments, Gain (Loss) in Income | Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ (3.8 ) $ (1.0 ) $ (5.3 ) $ (2.0 ) Cost of sales 1.4 (0.2 ) 1.5 0.3 Other income (expense), net (1) (6.9 ) (5.9 ) 21.0 (2.3 ) Total $ (9.3 ) $ (7.1 ) $ 17.2 $ (4.0 ) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ (35.3 ) $ (4.3 ) $ (61.7 ) $ (14.8 ) Cost of sales 7.5 9.0 19.0 20.3 Selling, general and administrative expense (0.4 ) 0.1 (0.9 ) — Research and development expense (0.1 ) — (0.1 ) — Net interest expense 1.9 — 1.9 — Total $ (26.4 ) $ 4.8 $ (41.8 ) $ 5.5 Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Foreign exchange contracts: Revenue $ 6.4 $ 4.1 $ 6.9 $ 8.7 Cost of sales (4.5 ) (9.4 ) (10.3 ) (13.1 ) Net interest expense (0.1 ) — (0.1 ) — Total $ 1.8 $ (5.3 ) $ (3.5 ) $ (4.4 ) |
Offsetting Assets | June 30, 2015 December 31, 2014 (In millions) Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Derivative assets $ 305.0 $ (288.2 ) $ 16.8 $ 332.5 $ (321.5 ) $ 11.0 |
Offsetting Liabilities | June 30, 2015 December 31, 2014 (In millions) Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset Permitted Under Master Netting Agreements Net Amount Derivative liabilities $ 464.3 $ (288.2 ) $ 176.1 $ 450.4 $ (321.5 ) $ 128.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value | Assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2015 December 31, 2014 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments: Equity securities $ 19.9 $ 19.9 $ — $ — $ 22.5 $ 22.5 $ — $ — Fixed income 5.5 5.5 — — 7.1 7.1 — — Money market fund 3.1 — 3.1 — 3.4 — 3.4 — Stable value fund 1.3 — 1.3 — 0.7 — 0.7 — Other 2.0 2.0 — — 2.1 2.1 — — Derivative financial instruments: Foreign exchange contracts 305.0 — 305.0 — 332.5 — 332.5 — Total assets $ 336.8 $ 27.4 $ 309.4 $ — $ 368.3 $ 31.7 $ 336.6 $ — Liabilities Derivative financial instruments: Foreign exchange contracts 464.3 — 464.3 — 450.4 — 450.4 — Total liabilities $ 464.3 $ — $ 464.3 $ — $ 450.4 $ — $ 450.4 $ — |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Revenue, Segment Operating Profit And Corporate Items | Segment revenue and segment operating profit were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2015 2014 2015 2014 Segment revenue Subsea Technologies (5) $ 1,239.4 $ 1,328.6 $ 2,396.6 $ 2,530.6 Surface Technologies 363.3 510.9 809.6 990.4 Energy Infrastructure 101.4 149.2 202.3 294.7 Other revenue (1) and intercompany eliminations (8.9 ) (3.4 ) (18.1 ) (6.0 ) Total revenue $ 1,695.2 $ 1,985.3 $ 3,390.4 $ 3,809.7 Income before income taxes: Segment operating profit : Subsea Technologies (5) $ 183.5 $ 193.7 $ 352.2 $ 335.4 Surface Technologies 27.5 79.2 90.4 167.1 Energy Infrastructure 5.3 18.2 8.2 33.7 Intercompany eliminations — — — (0.1 ) Total segment operating profit 216.3 291.1 450.8 536.1 Corporate items: Corporate expense (2) (14.0 ) (16.8 ) (30.3 ) (31.7 ) Other revenue (1) and other expense, net (3) (29.5 ) 68.0 (55.9 ) 48.3 Net interest expense (9.0 ) (8.3 ) (16.3 ) (16.5 ) Total corporate items (52.5 ) 42.9 (102.5 ) 0.1 Income before income taxes attributable to FMC Technologies, Inc. (4) $ 163.8 $ 334.0 $ 348.3 $ 536.2 _______________________ (1) Other revenue comprises certain unrealized gains and losses on derivative instruments related to unexecuted sales contracts. (2) Corporate expense primarily includes corporate staff expenses. (3) Other expense, net, generally includes stock-based compensation, other employee benefits, LIFO adjustments, certain foreign exchange gains and losses, and the impact of unusual or strategic transactions not representative of segment operations. (4) Excludes amounts attributable to noncontrolling interests. (5) Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. |
Segment Operating Capital Employed And Segment Assets | Segment operating capital employed and assets were as follows: (In millions) June 30, 2015 December 31, 2014 Segment operating capital employed (1) : Subsea Technologies (4) $ 2,287.9 $ 2,175.2 Surface Technologies 1,130.1 1,183.6 Energy Infrastructure 316.0 313.9 Total segment operating capital employed 3,734.0 3,672.7 Segment liabilities included in total segment operating capital employed (2) 2,077.0 2,402.3 Corporate (3) 1,082.9 1,100.6 Total assets $ 6,893.9 $ 7,175.6 Segment assets: Subsea Technologies (4) $ 3,999.8 $ 4,066.1 Surface Technologies 1,406.0 1,587.8 Energy Infrastructure 426.3 442.3 Intercompany eliminations (21.1 ) (21.2 ) Total segment assets 5,811.0 6,075.0 Corporate (3) 1,082.9 1,100.6 Total assets $ 6,893.9 $ 7,175.6 _______________________ (1) FMC Technologies’ management views segment operating capital employed, which consists of assets, net of its liabilities, as the primary measure of segment capital. Segment operating capital employed excludes debt, pension liabilities, income taxes, and LIFO and valuation adjustments. (2) Segment liabilities included in total segment operating capital employed consist of trade and other accounts payable, advance payments and progress billings, accrued payroll and other liabilities. (3) Corporate includes cash, LIFO adjustments, deferred income tax balances, property, plant and equipment not associated with a specific segment, pension assets and the fair value of derivative financial instruments. (4) Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Number Of Shares Used For Basic And Diluted Earnings Per Share ("EPS") Calculation ) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to FMC Technologies, Inc. | $ 107.9 | $ 226.3 | $ 255.5 | $ 361.5 |
Weighted average number of shares outstanding | 232.3 | 236.7 | 232.7 | 237 |
Dilutive effect of restricted stock units and stock options | 0.6 | 0.5 | 0.5 | 0.5 |
Total shares and dilutive securities | 232.9 | 237.2 | 233.2 | 237.5 |
Basic earnings per share attributable to FMC Technologies, Inc. | $ 0.46 | $ 0.96 | $ 1.10 | $ 1.53 |
Diluted earnings per share attributable to FMC Technologies, Inc. | $ 0.46 | $ 0.95 | $ 1.10 | $ 1.52 |
Restructuring and Other Charg38
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring expense | $ 9.3 | $ 0.2 | $ 15.9 | $ 4.9 |
Impairment expense | 0.4 | 4.2 | ||
Total restructuring and other charges | $ 9.7 | $ 0.2 | $ 20.1 | $ 4.9 |
Sale of Material Handling Pro39
Sale of Material Handling Products (Details) - Jun. 30, 2014 - USD ($) $ in Millions | Total | Total |
Discontinued Operations and Disposal Groups [Abstract] | ||
Gain on sale of Material Handling Products | $ 85.6 | $ 85.6 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 185.8 | $ 196.6 |
Work in process | 149.3 | 166.1 |
Finished goods | 830.6 | 849.9 |
Inventory, gross | 1,165.7 | 1,212.6 |
LIFO and valuation adjustments | (195.6) | (191.4) |
Inventories, net | $ 970.1 | $ 1,021.2 |
Equity Method Investments (Deta
Equity Method Investments (Details) - Jun. 30, 2015 - FTO Services - USD ($) $ in Millions | Total | Total |
Equity Method Investments | ||
Cumulative cash investment | $ 5 | $ 5 |
Ownership percentage | 50.00% | 50.00% |
Income (loss) from equity earnings in affiliates | $ (10.1) | $ (18.4) |
Carrying value | (20) | (20) |
Unrecognized losses from equity in earnings of affiliates | $ (3) | $ (3) |
Debt (Schedule Of Long-Term Deb
Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Commercial paper | [1] | 452.1 | 469.1 |
Term loan | 19.3 | 22.9 | |
Property financing | 7 | 9.7 | |
Total long-term debt | 1,277.8 | 1,301 | |
Less: current portion | (2.6) | (3.8) | |
Long-term debt, less current portion | $ 1,275.2 | 1,297.2 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Commercial paper borrowings weighted average interest rate, as a percent | 0.56% | ||
Senior Notes 2017 | |||
Debt Instrument [Line Items] | |||
Senior notes, noncurrent | $ 299.7 | $ 299.6 | |
Senior notes, interest rate, as a percent | 2.00% | 2.00% | |
Senior Notes 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes, noncurrent | $ 499.7 | $ 499.7 | |
Senior notes, interest rate, as a percent | 3.45% | 3.45% | |
[1] | Committed credit available under our revolving credit facility provided the ability to refinance our commercial paper obligations on a long-term basis. As we have both the ability and intent to refinance these obligations on a long-term basis, our commercial paper borrowings were classified as long-term in the condensed consolidated balance sheets at June 30, 2015 and December 31, 2014. As of June 30, 2015, our commercial paper borrowings had a weighted average interest rate of 0.56%. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate, as a percent | 34.10% | 32.20% | 26.60% | 32.60% |
Warranty Obligations (Schedule
Warranty Obligations (Schedule Of Warranty Cost And Accrual Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ||||
Balance at beginning of period | $ 24.1 | $ 18.9 | $ 23 | $ 18 |
Expense for new warranties | 8.7 | 5.5 | 16.4 | 10.9 |
Adjustments to existing accruals | 0.5 | 0.2 | 2.1 | 0.6 |
Claims paid | (6.7) | (5.2) | (14.9) | (10.1) |
Balance at end of period | $ 26.6 | $ 19.4 | $ 26.6 | $ 19.4 |
Pension And Other Post-retire45
Pension And Other Post-retirement Benefits (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
United States Pension Plans of US Entity, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 3.6 | $ 3.5 | $ 7.3 | $ 6.9 |
Interest cost | 6.6 | 7.3 | 13.2 | 14.6 |
Expected return on plan assets | (11) | (11.6) | (22) | (23.2) |
Amortization of actuarial loss (gain), net | 4.9 | 3 | 9.8 | 6.1 |
Net periodic benefit cost | 4.1 | 2.2 | 8.3 | 4.4 |
Pension contributions | 5.8 | |||
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 4.1 | 4.3 | 8.2 | 8.6 |
Interest cost | 3.7 | 4.7 | 7.4 | 9.4 |
Expected return on plan assets | (7) | (7.7) | (13.9) | (15.3) |
Amortization of prior service cost (credit) | 0.1 | 0.1 | ||
Amortization of actuarial loss (gain), net | 3.2 | 1.7 | 6.4 | 3.4 |
Net periodic benefit cost | 4 | 3.1 | 8.1 | 6.2 |
Pension contributions | 12.9 | |||
Other Post-retirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Amortization of actuarial loss (gain), net | (0.1) | |||
Net periodic benefit cost | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.1 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule Of Restricted Stock) (Details) - 6 months ended Jun. 30, 2015 - $ / shares shares in Thousands | Total | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 1,300 | |
Weighted-average grant date fair value (in dollars per share) | $ 39.77 | |
Time-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 931 | |
Performance-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | [1] | 246 |
Market-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | [1] | 123 |
[1] | *Assumes grant date expected payout |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation arrangement by share-based payment award, restricted stock units, award measurement period for market-based awards | 3 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense for nonvested stock units | $ 11.8 | $ 9.9 | $ 31.6 | $ 27.8 |
Performance-based Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 0 | |||
Performance-based Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 492,000 | |||
Market-based Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 0 | |||
Market-based Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 246,000 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 27, 2015 | |
Stockholders' Equity [Line Items] | |||||
Cash dividends declared | $ 0 | $ 0 | $ 0 | $ 0 | |
Value of common stock repurchased | $ 91.6 | $ 72 | |||
Remaining shares of common stock available for purchase (in shares) | 20,800,000 | 20,800,000 | |||
Cumulative Number Of Shares Authorized For Repurchase | |||||
Stockholders' Equity [Line Items] | |||||
Authorized stock repurchase (in shares) | 90,000,000 | 90,000,000 | |||
Additional Authorization of Shares For Repurchase | |||||
Stockholders' Equity [Line Items] | |||||
Authorized stock repurchase (in shares) | 15,000,000 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Treasury stock activity) (Details) - shares shares in Thousands | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ||||
Treasury stock (in shares) | 56,395 | 51,209 | 54,626 | 50,318 |
Stock awards (in shares) | (466) | (478) | ||
Treasury stock purchases (in shares) | 2,235 | 1,369 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | $ (91.5) | |||||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 43.8 | |||||
Other comprehensive income (loss), net of tax | $ 76.4 | $ (2.4) | (47.7) | $ 7 | ||
Accumulated other comprehensive income (loss), net of tax | (731.4) | (731.4) | $ (683.7) | |||
Foreign Currency Translation | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (74.3) | |||||
Other comprehensive income (loss), net of tax | [1] | (74.3) | ||||
Accumulated other comprehensive income (loss), net of tax | (386.2) | (386.2) | (311.9) | |||
Hedging | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | (17.2) | |||||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 33.1 | |||||
Other comprehensive income (loss), net of tax | [2] | 15.9 | ||||
Accumulated other comprehensive income (loss), net of tax | (61.4) | (61.4) | (77.3) | |||
Defined Pension and Other Post-retirement Benefits | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 10.7 | |||||
Other comprehensive income (loss), net of tax | [3] | 10.7 | ||||
Accumulated other comprehensive income (loss), net of tax | $ (283.8) | $ (283.8) | $ (294.5) | |||
[1] | Net of income tax (expense) benefit of $(1.5) and $(0.2) for the three months ended June 30, 2015 and 2014, respectively, and $6.8 and $(1.2) for the six months ended June 30, 2015 and 2014, respectively. | |||||
[2] | Net of income tax (expense) benefit of $(13.4) and $2.9 for the three months ended June 30, 2015 and 2014, respectively, and $(3.6) and $(0.9) for the six months ended June 30, 2015 and 2014, respectively. | |||||
[3] | Net of income tax (expense) benefit of $(2.5) and $(1.5) for the three months ended June 30, 2015 and 2014, respectively, and $(5.0) and $(3.4) for the six months ended June 30, 2015 and 2014, respectively. |
Stockholders' Equity Stockhol51
Stockholders' Equity Stockholder's Equity (Reclassification out of Other Comprehensive Income) (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Selling, general and administrative expense | $ (164.3) | $ (188.4) | $ (338.3) | $ (371.2) | |
Research and development expense | (36.2) | (29.4) | (65.8) | (54.7) | |
Net interest expense | (9) | (8.3) | (16.3) | (16.5) | |
Income before income taxes | 163.9 | 335.4 | 348.9 | 538.9 | |
Income tax (expense) benefit | (55.9) | (107.7) | (92.8) | (174.7) | |
Net income | 108 | 227.7 | 256.1 | 364.2 | |
Hedging | Foreign Exchange Contract | |||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Revenue | (35.3) | (4.3) | (61.7) | (14.8) | |
Cost of sales | 7.5 | 9 | 19 | 20.3 | |
Selling, general and administrative expense | (0.4) | 0.1 | (0.9) | ||
Research and development expense | (0.1) | (0.1) | |||
Net interest expense | 1.9 | 1.9 | |||
Income before income taxes | (26.4) | 4.8 | (41.8) | 5.5 | |
Income tax (expense) benefit | 6.3 | (0.3) | 8.7 | 1.4 | |
Net income | (20.1) | 4.5 | (33.1) | 6.9 | |
Defined Pension and Other Post-retirement Benefits | |||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Amortization of actuarial gain (loss) | [1] | (7.9) | (4.6) | (15.7) | (9.3) |
Amortization of prior service credit (cost) | [1] | 0.1 | |||
Income before income taxes | (7.9) | (4.6) | (15.7) | (9.2) | |
Income tax (expense) benefit | 2.5 | 1.4 | 5 | 3.3 | |
Net income | $ (5.4) | $ (3.2) | $ (10.7) | $ (5.9) | |
[1] | (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details). |
Derivative Financial Instrume52
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Derivative | |||||
Gain (loss) on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring, net | $ (3.7) | $ (0.5) | $ (4.6) | $ (0.5) | |
Cash flow hedges of forecasted transactions, net of tax, in accumulated OCI gain (loss) | $ (61.4) | (61.4) | $ (77.3) | ||
Cash flow hedge gain (loss) expected to be reclassified within 12 months | $ (36.7) | ||||
Hedges maturity year | 2,016 |
Derivative Financial Instrume53
Derivative Financial Instruments (Schedule Of Notional Amounts Of Outstanding Derivative Positions) (Details) - Jun. 30, 2015 € in Millions, £ in Millions, SGD in Millions, SFr in Millions, RUB in Millions, NOK in Millions, MYR in Millions, KWD in Millions, CAD in Millions, BRL in Millions, AUD in Millions, $ in Millions | CAD | BRL | MYR | SGD | RUB | NOK | EUR (€) | KWD | USD ($) | CHF (SFr) | GBP (£) | AUD |
Foreign Exchange Forward | Australia, Dollars | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | $ 24.6 | AUD 31.9 | ||||||||||
Foreign Exchange Forward | Brazilian real | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | BRL 167.5 | 53.4 | ||||||||||
Foreign Exchange Forward | British pound | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | 118.1 | £ 75 | ||||||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Sold | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | CAD 184.3 | 148.1 | ||||||||||
Foreign Exchange Forward | Euro | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | € 153.6 | 172 | ||||||||||
Foreign Exchange Forward | Kuwaiti dinar | Notional Amount Sold | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | KWD 5.3 | 17.5 | ||||||||||
Foreign Exchange Forward | Malaysia, Ringgits | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | MYR 85.8 | 22.7 | ||||||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | NOK 3,062 | 390.5 | ||||||||||
Foreign Exchange Forward | Russian ruble | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | RUB 882.6 | 15.9 | ||||||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | SGD 138 | 102.5 | ||||||||||
Foreign Exchange Forward | Switzerland, Francs | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | 15.1 | SFr 14.1 | ||||||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | 934.8 | |||||||||||
Embedded Derivative Financial Instruments | Brazilian real | Notional Amount Sold | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | BRL 56.4 | 18 | ||||||||||
Embedded Derivative Financial Instruments | Euro | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | € 13.6 | 15.2 | ||||||||||
Embedded Derivative Financial Instruments | Norwegian krone | Notional Amount Sold | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | NOK 175.8 | 22.4 | ||||||||||
Embedded Derivative Financial Instruments | U.S. dollar | Notional Amount Bought | ||||||||||||
Derivative | ||||||||||||
Derivative, notional amount | $ 24.2 |
Derivative Financial Instrume54
Derivative Financial Instruments (Fair Value Of Derivative Instruments In Statement Of Financial Position) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value | ||
Derivative assets | $ 305 | $ 332.5 |
Derivative liabilities | 464.3 | 450.4 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 285.1 | 301.5 |
Derivative liabilities | 443.2 | 421.7 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 222.2 | 172.1 |
Derivative liabilities | 340.6 | 207.1 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 62.9 | 129.4 |
Derivative liabilities | 102.6 | 214.6 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 19.9 | 31 |
Derivative liabilities | 21.1 | 28.7 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 14.6 | 25.5 |
Derivative liabilities | 14.6 | 23.1 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 5.3 | 5.5 |
Derivative liabilities | $ 6.5 | $ 5.6 |
Derivative Financial Instrume55
Derivative Financial Instruments (Derivative Instruments In Cash Flow Hedging Relationships Gain (Loss)) (Details) - Foreign Exchange Contract - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | $ (9.3) | $ (7.1) | $ 17.2 | $ (4) | |
Revenue | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | (3.8) | (1) | (5.3) | (2) | |
Cost of Sales | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | 1.4 | (0.2) | 1.5 | 0.3 | |
Other Income (Expense), Net | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | [1] | (6.9) | (5.9) | 21 | (2.3) |
Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Recognized in OCI (Effective Portion) | 31.3 | (10.8) | (22.3) | (8.9) | |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (26.4) | 4.8 | (41.8) | 5.5 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1.8 | (5.3) | (3.5) | (4.4) | |
Cash Flow Hedging | Revenue | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (35.3) | (4.3) | (61.7) | (14.8) | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 6.4 | 4.1 | 6.9 | 8.7 | |
Cash Flow Hedging | Cost of Sales | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 7.5 | 9 | 19 | 20.3 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (4.5) | (9.4) | (10.3) | $ (13.1) | |
Cash Flow Hedging | Selling, General and Administrative Expenses | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.4) | $ 0.1 | (0.9) | ||
Cash Flow Hedging | Research and Development Expense | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.1) | (0.1) | |||
Cash Flow Hedging | Net Interest Expense | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 1.9 | 1.9 | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (0.1) | $ (0.1) | |||
[1] | Other income (expense), net excludes asset and liability remeasurement gains and losses. |
Derivative Financial Instrume56
Derivative Financial Instruments Offsetting Assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 305 | 332.5 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (288.2) | (321.5) |
Net Amount | $ 16.8 | $ 11 |
Derivative Financial Instrume57
Derivative Financial Instruments Offsetting Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 464.3 | 450.4 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (288.2) | (321.5) |
Net Amount | $ 176.1 | $ 128.9 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Credit-risk-related contingent features | we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. | |
Senior Notes Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes, fair value | $ 781.3 | $ 779.5 |
Senior notes, face value | $ 800 | $ 800 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Equity securities | $ 19.9 | $ 22.5 |
Fixed income | 5.5 | 7.1 |
Money market fund | 3.1 | 3.4 |
Stable value fund | 1.3 | 0.7 |
Other | 2 | 2.1 |
Foreign exchange contracts | 305 | 332.5 |
Total assets | 336.8 | 368.3 |
Foreign exchange contracts | 464.3 | 450.4 |
Total liabilities | 464.3 | 450.4 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Equity securities | 19.9 | 22.5 |
Fixed income | 5.5 | 7.1 |
Other | 2 | 2.1 |
Total assets | 27.4 | 31.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market fund | 3.1 | 3.4 |
Stable value fund | 1.3 | 0.7 |
Foreign exchange contracts | 305 | 332.5 |
Total assets | 309.4 | 336.6 |
Foreign exchange contracts | 464.3 | 450.4 |
Total liabilities | $ 464.3 | $ 450.4 |
Commitments And Contingent Li60
Commitments And Contingent Liabilities Guarantees (Details) - Jun. 30, 2015 - Indirect Guarantee of Indebtedness - USD ($) $ in Millions | Total |
Loss Contingencies [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 40 |
Guarantor obligations, term | P2Y |
Business Segment Information (S
Business Segment Information (Schedule Of Segment Revenue And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information | |||||
Total revenue | $ 1,695.2 | $ 1,985.3 | $ 3,390.4 | $ 3,809.7 | |
Total segment operating profit | 216.3 | 291.1 | 450.8 | 536.1 | |
Net interest expense | (9) | (8.3) | (16.3) | (16.5) | |
Income before income taxes attributable to FMC Technologies, Inc. | [1] | 163.8 | 334 | 348.3 | 536.2 |
Operating segments | Subsea Technologies | |||||
Segment Reporting Information | |||||
Total revenue | [2] | 1,239.4 | 1,328.6 | 2,396.6 | 2,530.6 |
Total segment operating profit | [2] | 183.5 | 193.7 | 352.2 | 335.4 |
Operating segments | Surface Technologies | |||||
Segment Reporting Information | |||||
Total revenue | 363.3 | 510.9 | 809.6 | 990.4 | |
Total segment operating profit | 27.5 | 79.2 | 90.4 | 167.1 | |
Operating segments | Energy Infrastructure | |||||
Segment Reporting Information | |||||
Total revenue | 101.4 | 149.2 | 202.3 | 294.7 | |
Total segment operating profit | 5.3 | 18.2 | 8.2 | 33.7 | |
Segment reconciling items | |||||
Segment Reporting Information | |||||
Total revenue | [3] | (8.9) | (3.4) | (18.1) | (6) |
Intercompany eliminations | |||||
Segment Reporting Information | |||||
Total segment operating profit | (0.1) | ||||
Corporate items | |||||
Segment Reporting Information | |||||
Corporate expense | [4] | (14) | (16.8) | (30.3) | (31.7) |
Other revenue and other expense, net | [3],[5] | (29.5) | 68 | (55.9) | 48.3 |
Net interest expense | (9) | (8.3) | (16.3) | (16.5) | |
Total corporate items | $ (52.5) | $ 42.9 | $ (102.5) | $ 0.1 | |
[1] | Excludes amounts attributable to noncontrolling interests. | ||||
[2] | Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. | ||||
[3] | Other revenue comprises certain unrealized gains and losses on derivative instruments related to unexecuted sales contracts. | ||||
[4] | Corporate expense primarily includes corporate staff expenses. | ||||
[5] | Other expense, net, generally includes stock-based compensation, other employee benefits, LIFO adjustments, certain foreign exchange gains and losses, and the impact of unusual or strategic transactions not representative of segment operations. |
Business Segment Information 62
Business Segment Information (Segment Operating Capital Employed And Segment Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||
Total assets | $ 6,893.9 | $ 7,175.6 | |
Operating segments | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 3,734 | 3,672.7 |
Total assets | 5,811 | 6,075 | |
Operating segments | Subsea Technologies | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1],[2] | 2,287.9 | 2,175.2 |
Total assets | [2] | 3,999.8 | 4,066.1 |
Operating segments | Surface Technologies | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 1,130.1 | 1,183.6 |
Total assets | 1,406 | 1,587.8 | |
Operating segments | Energy Infrastructure | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 316 | 313.9 |
Total assets | 426.3 | 442.3 | |
Segment reconciling items | |||
Segment Reporting Information | |||
Segment liabilities included in total segment operating capital employed | [3] | 2,077 | 2,402.3 |
Intercompany eliminations | |||
Segment Reporting Information | |||
Total assets | (21.1) | (21.2) | |
Corporate | |||
Segment Reporting Information | |||
Total assets | [4] | $ 1,082.9 | $ 1,100.6 |
[1] | FMC Technologies’ management views segment operating capital employed, which consists of assets, net of its liabilities, as the primary measure of segment capital. Segment operating capital employed excludes debt, pension liabilities, income taxes, and LIFO and valuation adjustments. | ||
[2] | Results of FTO Services are reported in Subsea Technologies. Refer to Note 7 for additional information. | ||
[3] | Segment liabilities included in total segment operating capital employed consist of trade and other accounts payable, advance payments and progress billings, accrued payroll and other liabilities. | ||
[4] | Corporate includes cash, LIFO adjustments, deferred income tax balances, property, plant and equipment not associated with a specific segment, pension assets and the fair value of derivative financial instruments. |