Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | 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 | 226,355,422 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue: | ||
Product revenue | $ 958.7 | $ 1,362.3 |
Service revenue | 201.2 | 266.7 |
Lease and other income (Note 7) | 48.8 | 66.2 |
Total revenue | 1,208.7 | 1,695.2 |
Costs and expenses: | ||
Cost of product revenue | 742.9 | 1,030.1 |
Cost of service revenue | 160 | 206.3 |
Cost of lease and other revenue | 43.9 | 46.2 |
Selling, general and administrative expense | 143.4 | 174 |
Research and development expense | 33.6 | 29.6 |
Restructuring and impairment expense (Note 4) | 40.3 | 10.4 |
Total costs and expenses | 1,164.1 | 1,496.6 |
Other expense, net | (11.3) | (6.3) |
Income before net interest expense and income taxes | 33.3 | 192.3 |
Net interest expense | (7.5) | (7.3) |
Income before income taxes | 25.8 | 185 |
Provision for income taxes | 6 | 36.9 |
Net income | 19.8 | 148.1 |
Net income attributable to noncontrolling interests | (0.5) | |
Net income attributable to FMC Technologies, Inc. | $ 19.8 | $ 147.6 |
Earnings per share attributable to FMC Technologies, Inc. (Note 3): | ||
Basic | $ 0.09 | $ 0.63 |
Diluted | $ 0.09 | $ 0.63 |
Weighted average shares outstanding (Note 3): | ||
Basic | 228 | 233 |
Diluted | 228.6 | 233.9 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Net income | $ 19.8 | $ 148.1 | |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | [1] | 33.1 | (101) |
Net gains (losses) on hedging instruments: | |||
Net gains (losses) arising during the period | 23.7 | (41.4) | |
Reclassification adjustment for net losses included in net income | 22.6 | 13 | |
Net gains (losses) on hedging instruments | [2] | 46.3 | (28.4) |
Pension and other post-retirement benefits: | |||
Reclassification adjustment for settlement losses included in net income | 0.1 | ||
Reclassification adjustment for amortization of net actuarial loss included in net income | 4.3 | 5.3 | |
Net pension and other post-retirement benefits | [3] | 4.4 | 5.3 |
Other comprehensive income (loss), net of tax | 83.8 | (124.1) | |
Comprehensive income | 103.6 | 24 | |
Comprehensive income attributable to noncontrolling interest | (0.5) | ||
Comprehensive income attributable to FMC Technologies, Inc. | $ 103.6 | $ 23.5 | |
[1] | Net of income tax (expense) benefit of $(2.0) and $8.3 for the three months ended March 31, 2016 and 2015, respectively. | ||
[2] | Net of income tax (expense) benefit of $(12.3) and $9.8 for the three months ended March 31, 2016 and 2015, respectively. | ||
[3] | Net of income tax (expense) benefit of $(1.9) and $(2.5) for the three months ended March 31, 2016 and 2015, respectively. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign currency translation adjustments, tax (expense) benefit | $ (2) | $ 8.3 |
Net gains (losses) on hedging instruments, tax (expense) benefit | (12.3) | 9.8 |
Net pensions and other post-retirement benefits, tax (expense) benefit | $ (1.9) | $ (2.5) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 1,032.3 | $ 916.2 |
Receivables, net of allowances of $20.9 in 2016 and $19.2 in 2015 | 1,413.3 | 1,522.4 |
Inventories, net (Note 6) | 719.7 | 764.1 |
Derivative financial instruments (Note 15) | 274.1 | 333.9 |
Prepaid expenses | 58.5 | 48.9 |
Income taxes receivable | 62.4 | 68.7 |
Other current assets | 277.6 | 276 |
Total current assets | 3,837.9 | 3,930.2 |
Investments | 29.8 | 29.6 |
Property, plant and equipment, net of accumulated depreciation of $931.8 in 2016 and $892.1 in 2015 | 1,340.9 | 1,371.5 |
Goodwill | 520.1 | 514.7 |
Intangible assets, net of accumulated amortization of $146.1 in 2016 and $139.9 in 2015 | 237.2 | 246.3 |
Deferred income taxes | 191.1 | 183.3 |
Derivative financial instruments (Note 15) | 3.7 | 0.1 |
Other assets | 152.5 | 143.7 |
Total assets | 6,313.2 | 6,419.4 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt | 23.5 | 21.9 |
Accounts payable, trade | 418 | 519.3 |
Advance payments and progress billings | 630 | 664.6 |
Accrued payroll | 160.1 | 185.8 |
Derivative financial instruments (Note 15) | 428 | 516.9 |
Income taxes payable | 56.7 | 57.2 |
Other current liabilities | 330.6 | 339.6 |
Total current liabilities | 2,046.9 | 2,305.3 |
Long-term debt, less current portion (Note 9) | 1,218.4 | 1,134.1 |
Accrued pension and other post-retirement benefits, less current portion | 213.1 | 230.4 |
Derivative financial instruments (Note 15) | 1.1 | 0.5 |
Deferred income taxes | 115.4 | 105.4 |
Other liabilities | $ 98.1 | $ 100.5 |
Commitments and contingent liabilities (Note 10) | ||
Stockholders’ equity (Note 11): | ||
Preferred stock, $0.01 par value, 12.0 shares authorized in 2016 and 2015; no shares issued in 2016 or 2015 | $ 0 | $ 0 |
Common stock, $0.01 par value, 600.0 shares authorized in 2016 and 2015; 286.3 shares issued in 2016 and 2015; 226.2 and 226.8 shares outstanding in 2016 and 2015, respectively | 2.9 | 2.9 |
Common stock held in employee benefit trust, at cost; 0.2 shares in 2016 and 2015 | (7) | (7) |
Treasury stock, at cost; 60.0 and 59.4 shares in 2016 and 2015, respectively | (1,622.9) | (1,607.8) |
Capital in excess of par value of common stock | 750.5 | 759 |
Retained earnings | 4,269.5 | 4,249.7 |
Accumulated other comprehensive loss | (788.9) | (872.7) |
Total FMC Technologies, Inc. stockholders’ equity | 2,604.1 | 2,524.1 |
Noncontrolling interests | 16.1 | 19.1 |
Total equity | 2,620.2 | 2,543.2 |
Total liabilities and equity | $ 6,313.2 | $ 6,419.4 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables, allowances | $ 20.9 | $ 19.2 |
Property, plant and equipment, accumulated depreciation | 931.8 | 892.1 |
Intangible assets, accumulated amortization | $ 146.1 | $ 139.9 |
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) | 226,200,000 | 226,800,000 |
Common stock, held in employee benefit trust (in shares) | 200,000 | 200,000 |
Treasury stock (in shares) | 59,977,000 | 59,356,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash provided (required) by operating activities: | ||
Net income | $ 19.8 | $ 148.1 |
Adjustments to reconcile net income to cash provided (required) by operating activities: | ||
Depreciation | 45.4 | 42.2 |
Amortization | 17.9 | 15.6 |
Employee benefit plan and stock-based compensation costs | 23.7 | 26.6 |
Unrealized loss on derivative instruments | 6.8 | 10.4 |
Deferred income tax provision (benefit), net | (15.7) | 17 |
Impairments | 34.4 | 3.9 |
Other | 14.1 | 6 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Receivables, net | 146.9 | 254.8 |
Inventories, net | 51.5 | (23.3) |
Accounts payable, trade | (110.9) | (78.5) |
Advance payments and progress billings | (53.3) | (138.9) |
Income taxes payable, net | 5.2 | (23.4) |
Accrued pension and other post-retirement benefits, net | (8.4) | (13.9) |
Other assets and liabilities, net | (68.4) | (71) |
Cash provided by operating activities | 109 | 175.6 |
Cash provided (required) by investing activities: | ||
Capital expenditures | (35.3) | (86.7) |
Investment in joint ventures | (9.2) | |
Other | 1.8 | 5.3 |
Cash required by investing activities | (42.7) | (81.4) |
Cash provided (required) by financing activities: | ||
Net increase (decrease) in short-term debt | 0.1 | (0.3) |
Net increase in commercial paper | 84.1 | 9 |
Repayments of long-term debt | (0.3) | |
Purchase of treasury stock | (30.5) | (30.8) |
Payments related to taxes withheld on stock-based compensation | (7.7) | (7.6) |
Other | (8.7) | (0.9) |
Cash provided (required) by financing activities | 37.3 | (30.9) |
Effect of exchange rate changes on cash and cash equivalents | 12.5 | (7) |
Increase in cash and cash equivalents | 116.1 | 56.3 |
Cash and cash equivalents, beginning of period | 916.2 | 638.8 |
Cash and cash equivalents, end of period | $ 1,032.3 | $ 695.1 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 financial 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, 2015 . We revised our current derivative financial instrument asset and liability balances as of December 31, 2015 to eliminate certain intercompany derivative transactions. As a result, our total financial position as of December 31, 2015 decreased by $38.0 million . 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 accompanying unaudited condensed financial 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 financial statements may not be representative of the results that may be expected for the year ending December 31, 2016 . Reclassifications— Certain prior-year amounts have been reclassified to conform to the current year’s presentation. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU No. 2014-09 by one year, and as a result, is now effective for us on January 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, “Identifying Performance Obligations and Licensing” which gives further guidance on identifying performance obligations and clarification of the licensing implementation guidance. Early application 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 July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory .” This update requires in scope inventory to be measured at the lower of cost and net realizable value rather than at the lower of cost or market under existing guidance. The amendments in this ASU are effective for us on January 1, 2017. Early application is permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. Early application is permitted. Entities are required to use a modified retrospective adoption, with certain relief provisions, for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements when adopted. The guidance will become effective for us on January 1, 2019. 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 March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Among other amendments, this update requires that excess tax benefits or deficiencies are recognized as income tax expense or benefit in the income statement, gives an entity the ability to elect to estimate the number of awards that are expected to vest or account for forfeitures as they occur and permits withholding up to the maximum statutory tax rates as the threshold to qualify for equity classification. The guidance will become effective for us on January 1, 2017. Early application is permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. Change in Accounting Principle Effective January 1, 2016, we changed the method of valuing inventory for certain domestic inventories in our surface integrated services business from the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method under GAAP. The cumulative effect, net of income taxes, of the change in accounting principle was approximately $12.3 million and was recorded as an increase to retained earnings as of January 1, 2013. The statements of income for the years ended December 31, 2013, 2014, and 2015, including interim periods therein, were not retroactively adjusted as the adjustment for each of the periods was not material. We believe the FIFO method is preferable as it better reflects the current value of inventory reported in the consolidated balance sheets, provides for better matching of costs of goods sold with related revenue, provides for greater consistency and uniformity across our operations with respect to the method of inventory valuation, and is the method used by management to monitor the financial results of the business for operational and financial planning. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In millions, except per share data) 2016 2015 Net income attributable to FMC Technologies, Inc. $ 19.8 $ 147.6 Weighted average number of shares outstanding 228.0 233.0 Dilutive effect of restricted stock units 0.6 0.9 Total shares and dilutive securities 228.6 233.9 Basic earnings per share attributable to FMC Technologies, Inc. $ 0.09 $ 0.63 Diluted earnings per share attributable to FMC Technologies, Inc. $ 0.09 $ 0.63 |
Restructuring and Impairment Ex
Restructuring and Impairment Expense | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Expense | RESTRUCTURING AND IMPAIRMENT EXPENSE Restructuring and impairment expense were as follows: Three Months Ended March 31, (In millions) 2016 2015 Restructuring expense: Subsea Technologies $ 0.1 $ 0.7 Surface Technologies 3.9 4.4 Energy Infrastructure 1.9 1.4 Total restructuring expense 5.9 6.5 Impairment expense: Subsea Technologies 0.1 0.3 Surface Technologies 34.3 3.6 Energy Infrastructure — — Total impairment expense 34.4 3.9 Total restructuring and impairment expense $ 40.3 $ 10.4 Restructuring —As a result of the decline in crude oil prices and its effect on the demand for products and services in the oilfield services industry worldwide, beginning in 2015, we initiated a company-wide reduction in workforce intended to reduce costs and better align our workforce with current and anticipated activity levels, which resulted in the continued recognition of severance costs relating to termination benefits and other restructuring charges. Asset impairments— We conduct impairment tests on long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition over the asset’s remaining useful life. Our review of recoverability of the carrying value of our assets considers several assumptions including the intended use and service potential of the asset. The prolonged downturn in the energy market and its corresponding impact on our business outlook led us to conclude the carrying amount of certain long-lived assets in our United States surface integrated services business exceeded their fair values. The low commodity price environment’s impact on our outlook for revenue growth and profitability of our U.S. surface integrated services business led us to record impairment charges in our Surface Technologies segment during the three months ended March 31, 2016 . These asset impairments included impairment charges of our flowback plant, property and equipment and related customer relationships intangible assets of $12.4 million and $3.4 million , respectively, to record the assets to their combined fair value of $44.7 million as of March 31, 2016 . Also, we recorded impairment charges of $15.3 million and $2.8 million , to our wireline equipment and allocated goodwill, respectively, to record the assets to their combined fair value of $20.0 million as of March 31, 2016 . The impairment charges, recorded in our Surface Technologies segment, include wireline operations in both the United States and Canada and relate to the classification of the assets as held for sale. Refer to Note 5 for information related to the classification of these assets as held for sale. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 31, 2016 | |
Assets Held for Sale [Abstract] | |
Assets Held for Sale | ASSETS HELD FOR SALE As of March 31, 2016, we classified property, plant, and equipment as held for sale related to our wireline operations in our surface integrated services businesses in the United States and Canada. Prior to and as a result of the held for sale classification, we reviewed the assets for and recorded impairments on the wireline property, plant and equipment and allocated goodwill to the disposal group to adjust their carrying values to fair value. Refer to Note 4 for financial information related to these impairments. In addition, during the three months ended March 31, 2016, we recognized a $1.4 million loss on sale as a result of adjusting the held for sale assets to fair value less cost to sell. As of March 31, 2016, assets held for sale of $17.9 million are reported in other current assets on our condensed consolidated balance sheet and are included in our Surface Technologies segment. We expect the completion of the sale to occur during the second quarter of 2016. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (In millions) March 31, December 31, As Adjusted Raw materials $ 140.4 $ 149.9 Work in process 107.0 114.8 Finished goods 699.6 723.4 947.0 988.1 LIFO and valuation adjustments (227.3 ) (224.0 ) Inventories, net $ 719.7 $ 764.1 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS FTO Services —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. We have accounted for our 50% investment using the equity method of accounting, and its results are reported in our Subsea Technologies segment. 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 10 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 $7.3 million and $8.3 million of losses from equity earnings in affiliates for the three months ended March 31, 2016 and 2015 , respectively, which are included in lease and other income in the accompanying condensed consolidated statements of income. The carrying value of our equity method investment in FTO Services was $(20.0) million as of March 31, 2016 , 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 and additional financial support provided and committed, we recognized losses up to our joint share of such obligations and suspended the recognition of $3.6 million of equity method losses as of March 31, 2016 . Equity method losses suspended as of March 31, 2016 will be recognized when additional financial support to FTO Services is provided or committed. Forsys Subsea —Forsys Subsea Limited (“Forsys Subsea”) is an affiliated company in the form of a joint venture between FMC Technologies and Technip S.A. We have accounted for our 50% investment using the equity method of accounting, and its results are reported in our Subsea Technologies segment. Forsys Subsea 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 $4.0 million of losses from equity earnings in affiliates for the three months ended March 31, 2016 , which are included in lease and other income in the accompanying consolidated statements of income. Summarized financial information —Summarized financial information for the entirety of FTO Services and Forsys Subsea is presented below. Three months ended March 31, (In millions) 2016 2015 (1) Revenue $ 8.4 $ — Gross profit (loss) (8.5 ) (0.4 ) Net income (loss) (29.4 ) (15.7 ) ______________________________ (1) Due to its formation in the second quarter of 2015, financial information for Forsys Subsea is not applicable for the three months ended March 31, 2015. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The carrying amount of goodwill by business segment was as follows: (In millions) Subsea Technologies Surface Technologies Energy Infrastructure Total December 31, 2015 $ 357.4 $ 71.9 $ 85.4 $ 514.7 UCOS ® product group transfer (1) 2.7 — (2.7 ) — Impairment (2) — (2.8 ) — (2.8 ) Translation 5.7 2.5 — 8.2 March 31, 2016 $ 365.8 $ 71.6 $ 82.7 $ 520.1 ______________________________ (1) Beginning in the first quarter of 2016, UCOS ® product group results are included in Subsea Technologies. Refer to Note 18 for additional disclosure. (2) Refer to Note 4 for additional disclosure related to impairment of goodwill during the three months ended March 31, 2016. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instruments [Abstract] | |
Debt | DEBT Long-term debt consisted of the following: (In millions) March 31, December 31, Revolving credit facility $ — $ — Commercial paper (1) 421.3 337.2 2.00% Notes due 2017 299.3 299.1 3.45% Notes due 2022 497.6 497.5 Term loan 17.1 15.6 Capital leases 0.6 0.7 Total long-term debt 1,235.9 1,150.1 Less: current portion (17.5 ) (16.0 ) Long-term debt, less current portion $ 1,218.4 $ 1,134.1 _______________________ (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 March 31, 2016 and December 31, 2015 . As of March 31, 2016, our commercial paper borrowings had a weighted average interest rate of 1.14% . |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments associated with leases— In March 2014 we entered into construction and operating lease agreements to finance the construction of manufacturing and office facilities located in Houston, TX. In January 2016 construction of the facilities was completed and rental payments under the operating lease commenced. Upon expiration of the operating lease in September 2021, we have the option to renew the lease, purchase the facilities or re-market the facilities on behalf of the lessor, including certain guarantees of residual value under the re-marketing option. Contingent liabilities associated with guarantees— In the ordinary course of business, we enter into standby letters of credit, performance bonds, surety bonds and other guarantees with financial institutions for the benefit of our customers, vendors and other parties. 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 reasonably possible. 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 or disputes in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions because of their inherent uncertainty. 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY The following table summarizes activity within certain components of stockholders’ equity during the three months ended March 31, 2016 : (In millions) Common Stock Held in Treasury and Employee Benefit Trust Capital in Accumulated Balance as of December 31, 2015 $ (1,614.8 ) $ 759.0 $ (872.7 ) Other comprehensive income (loss) — — 83.8 Excess tax benefits on stock-based payment arrangements — (5.6 ) — Taxes withheld on issuance of stock-based awards — (7.7 ) — Purchases of treasury stock (30.5 ) 2.2 — Reissuances of treasury stock 15.4 (15.4 ) — Net purchases of common stock for employee benefit trust — (0.2 ) — Stock-based compensation (Note 14) — 18.3 — Other — (0.1 ) — Balance as of March 31, 2016 $ (1,629.9 ) $ 750.5 $ (788.9 ) There were no cash dividends declared during the three months ended March 31, 2016 and 2015. The following is a summary of our treasury stock activity for the three months ended March 31, 2016 and 2015 : (Number of shares in thousands) Treasury Stock Balance as of December 31, 2014 54,626 Stock awards (322 ) Treasury stock purchases 776 Balance as of March 31, 2015 55,080 Balance as of December 31, 2015 59,356 Stock awards (487 ) Treasury stock purchases 1,108 Balance as of March 31, 2016 59,977 We repurchased $28.3 million and $30.8 million of common stock during the three months ended March 31, 2016 and March 31, 2015 , respectively, under our authorized share repurchase program. As of March 31, 2016, our Board of Directors had authorized 90.0 million shares of common stock under our share repurchase program, and approximately 16.7 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, 2015 $ (494.2 ) $ (87.1 ) $ (291.4 ) $ (872.7 ) Other comprehensive income (loss) before reclassifications, net of tax 33.1 23.7 — 56.8 Reclassification adjustment for net losses (gains) included in net income, net of tax — 22.6 4.4 27.0 Other comprehensive income (loss), net of tax 33.1 46.3 4.4 83.8 March 31, 2016 $ (461.1 ) $ (40.8 ) $ (287.0 ) $ (788.9 ) Reclassifications out of accumulated other comprehensive loss consisted of the following: Three Months Ended (In millions) March 31, 2016 March 31, 2015 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: $ (37.9 ) $ (26.4 ) Revenue 8.9 11.5 Cost of sales (0.1 ) (0.5 ) Selling, general and administrative expense (29.1 ) (15.4 ) Income before income taxes 6.5 2.4 Provision for income taxes $ (22.6 ) $ (13.0 ) Net income Defined pension and other post-retirement benefits Amortization of actuarial gain (loss) $ (6.2 ) $ (7.8 ) (a) Settlement cost (0.2 ) — (a) (6.4 ) (7.8 ) Income before income taxes 2.0 2.5 Provision for income taxes $ (4.4 ) $ (5.3 ) Net income _______________________ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 13 for additional details). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our income tax provisions for the three months ended March 31, 2016 and 2015, reflected effective tax rates of 23.4% and 20.0% , respectively. Excluding a benefit related to an increase in the amount of prior year foreign earnings considered to be indefinitely reinvested outside the United States, our effective tax rate during the three months ended March 31, 2015 was 26.6% . The year-over-year decrease from this adjusted rate was primarily due to a favorable change in the forecasted country mix of earnings. 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. |
Pension And Other Post-retireme
Pension And Other Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (In millions) U.S. Int’l U.S. Int’l Service cost $ 3.2 $ 3.0 $ 3.7 $ 4.1 Interest cost 7.1 3.5 6.6 3.7 Expected return on plan assets (11.2 ) (6.4 ) (11.0 ) (6.9 ) Amortization of actuarial loss (gain), net 3.9 2.5 4.9 3.2 Other — 0.2 — — Net periodic benefit cost $ 3.0 $ 2.8 $ 4.2 $ 4.1 Other Post-retirement Benefits Three Months Ended March 31, (In millions) 2016 2015 Interest cost $ 0.1 $ 0.1 Net periodic benefit cost $ 0.1 $ 0.1 During the three months ended March 31, 2016, we contributed $0.1 million to our domestic pension benefit plans and $8.2 million to our international pension benefit plans. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
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 $18.3 million and $19.8 million for the three months ended March 31, 2016 and 2015, respectively. During the three months ended March 31, 2016, 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 982 Performance-based 387 * Market-based 193 * Total granted 1,562 $ 23.69 _______________________ * Assumes grant date expected payout For current-year performance-based awards, actual payouts may vary from zero to 774 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, 2016 . Compensation cost is measured based on the current expected outcome of the performance conditions and may be adjusted until the performance period ends. The following table summarizes the potential payouts for market-based awards for the three months ended March 31, 2016 : (Number of market-based awards in thousands) Minimum Maximum 2014 Market-based awards — 86 2015 Market-based awards — 123 2016 Market-based awards — 387 Our 2014, 2015 and 2016 market-based awards actual payouts are contingent upon our performance relative to the same peer group of companies with respect to total shareholder return (“TSR”) for the three year periods ending December 31, 2016, 2017 and 2018, respectively. 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 regardless of our relative ranking to the peer group. 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS For purposes of mitigating the effect of changes in exchange rates, we hold derivative financial instruments to hedge the risks of certain identifiable and anticipated transactions and recorded assets and liabilities in our consolidated balance sheets. 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. Our policy is to hold derivatives only for the purpose of hedging risks associated with anticipated foreign currency purchases and sales created in the normal course of business 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. For derivative instruments not designated as hedging instruments, any change in the fair value of those instruments are reflected in earnings in the period such change occurs. 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 and recorded assets and liabilities in our consolidated balance sheets. At March 31, 2016, we held the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real 405.2 113.9 British pound 70.0 100.8 Canadian dollar (188.3 ) (146.0 ) Euro 163.2 185.9 Malaysian ringgit 114.9 29.5 Norwegian krone 1,633.4 197.4 Russian ruble (1,092.1 ) (16.2 ) Singapore dollar 164.1 122.2 U.S. dollar (769.6 ) (769.6 ) 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 March 31, 2016, our portfolio of these instruments included the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (60.8 ) (17.1 ) Euro 19.2 21.8 Norwegian krone (150.8 ) (18.2 ) U.S. dollar 14.2 14.2 Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. Refer to Note 16 to these consolidated financial statements for further disclosures related to the fair value measurement process. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a current market exchange and may not be indicative of the gains or losses we may ultimately incur when these contracts are settled. The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets. March 31, 2016 December 31, 2015 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 232.0 $ 381.3 $ 307.6 $ 488.2 Long-term – Derivative financial instruments 3.1 1.1 0.1 0.5 Total derivatives designated as hedging instruments 235.1 382.4 307.7 488.7 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 42.1 46.7 26.3 28.7 Long-term – Derivative financial instruments 0.6 — — — Total derivatives not designated as hedging instruments 42.7 46.7 26.3 28.7 Total derivatives $ 277.8 $ 429.1 $ 334.0 $ 517.4 We recognized losses of $1.0 million and $0.9 million on cash flow hedges for the three months ended March 31, 2016 and 2015, respectively, due to hedge ineffectiveness as it was probable that the original forecasted transaction would not occur. Cash flow hedges of forecasted transactions, net of tax, resulted in an accumulated other comprehensive loss of $40.8 million and $87.1 million at March 31, 2016, and December 31, 2015 respectively. We expect to transfer an approximate $25.6 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 second half of 2017 . The following tables present the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as cash flow hedges. Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts $ (29.5 ) $ (53.6 ) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ (37.9 ) $ (26.4 ) Cost of sales 8.9 11.5 Selling, general and administrative expense (0.1 ) (0.5 ) Total $ (29.1 ) $ (15.4 ) Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ 3.6 $ 0.5 Cost of sales (5.1 ) (5.8 ) Total $ (1.5 ) $ (5.3 ) The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments not designated as hedging instruments. Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ (1.9 ) $ (1.5 ) Cost of sales 1.4 0.1 Other income (expense), net (1) (5.9 ) 27.9 Total $ (6.4 ) $ 26.5 _______________________ (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 March 31, 2016, and December 31, 2015 we had no collateralized derivative contracts. The following tables present both gross information and net information of recognized derivative instruments: March 31, 2016 December 31, 2015 (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 $ 277.8 $ (258.4 ) $ 19.4 $ 334.0 $ (316.8 ) $ 17.2 March 31, 2016 December 31, 2015 (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 $ 429.1 $ (258.4 ) $ 170.7 $ 517.4 $ (316.8 ) $ 200.6 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2016 December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments: Equity securities $ 17.8 $ 17.8 $ — $ — $ 18.4 $ 18.4 $ — $ — Fixed income 5.0 5.0 — — 4.9 4.9 — — Money market fund 3.5 — 3.5 — 2.9 — 2.9 — Other investments 1.0 1.0 — — 1.0 1.0 — — Stable value fund (1) 1.2 1.2 Derivative financial instruments: Foreign exchange contracts 277.8 — 277.8 — 334.0 — 334.0 — Total assets $ 306.3 $ 23.8 $ 281.3 $ — $ 362.4 $ 24.3 $ 336.9 $ — Liabilities Derivative financial instruments: Foreign exchange contracts 429.1 — 429.1 — 517.4 — 517.4 — Total liabilities $ 429.1 $ — $ 429.1 $ — $ 517.4 $ — $ 517.4 $ — _______________________ (1) Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. 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. Refer to Note 15 for additional disclosure related to derivative financial instruments. Assets measured at fair value on a non-recurring basis were as follows: Fair value of long-lived non-financial assets— Long-lived, non-financial assets are measured at fair value on a non-recurring basis for the purposes of calculating impairment. The fair value of our wireline long-lived, non-financial assets measured on a non-recurring basis were determined by Level 1 observable inputs related to its held for sale classification. The fair value measurements of our flowback long-lived, non-financial assets measured on a non-recurring basis were determined by estimating the amount and timing of net future cash flows, which are Level 3 unobservable inputs, and discounting them using a risk-adjusted rate of interest. Significant increases or decreases in actual cash flows may result in valuation changes. During the three months ended March 31, 2016 , we recorded asset impairment charges primarily related to our surface integrated services business. Refer to Note 4 for additional disclosure related to these asset impairments. Other fair value disclosures: 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 $771.1 million at March 31, 2016 and approximately $761.9 million at December 31, 2015 , 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. |
Warranty Obligations
Warranty Obligations | 3 Months Ended |
Mar. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | WARRANTY OBLIGATIONS Warranty cost and accrual information was as follows: Three Months Ended March 31, (In millions) 2016 2015 Balance at beginning of period $ 27.0 $ 23.0 Expense for new warranties 6.0 7.7 Adjustments to existing accruals 1.6 1.6 Claims paid (6.8 ) (8.2 ) Balance at end of period $ 27.8 $ 24.1 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segment | BUSINESS SEGMENTS Beginning in the first quarter of 2016, the Invalco product line, formally reported in the results of Surface Technologies, is now reported in Energy Infrastructure. In addition, beginning in the first quarter of 2016, the UCOS ® product group, formally reported in the results of Energy Infrastructure, is now reported in Subsea Technologies. Prior year information has not been restated due to the immateriality of these businesses. The results of our equity method joint ventures, FTO Services and Forsys Subsea, are included in the results of operations and capital employed of the Subsea Technologies segment. Refer to Note 7 for additional information. Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (In millions) 2016 2015 Segment revenue Subsea Technologies $ 864.0 $ 1,157.2 Surface Technologies 265.5 446.3 Energy Infrastructure 84.1 100.9 Other revenue (1) and intercompany eliminations (4.9 ) (9.2 ) Total revenue $ 1,208.7 $ 1,695.2 Income before income taxes: Segment operating profit (loss) : Subsea Technologies $ 109.5 $ 168.7 Surface Technologies (28.6 ) 62.9 Energy Infrastructure (3.3 ) 2.9 Total segment operating profit 77.6 234.5 Corporate items: Corporate expense (2) (14.3 ) (16.3 ) Other revenue (1) and other expense, net (3) (30.0 ) (26.4 ) Net interest expense (7.5 ) (7.3 ) Total corporate items (51.8 ) (50.0 ) Income before income taxes attributable to FMC Technologies, Inc. (4) $ 25.8 $ 184.5 _______________________ (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. Segment operating capital employed and assets were as follows: (In millions) March 31, 2016 December 31, 2015 Segment operating capital employed (1) : As Adjusted Subsea Technologies $ 2,081.2 $ 2,025.7 Surface Technologies 863.6 911.9 Energy Infrastructure 263.9 281.5 Total segment operating capital employed 3,208.7 3,219.1 Segment liabilities included in total segment operating capital employed (2) 1,612.3 1,806.1 Corporate (3) 1,492.2 1,394.2 Total assets $ 6,313.2 $ 6,419.4 Segment assets: Subsea Technologies $ 3,391.6 $ 3,512.3 Surface Technologies 1,088.7 1,131.9 Energy Infrastructure 377.7 396.7 Intercompany eliminations (37.0 ) (15.7 ) Total segment assets 4,821.0 5,025.2 Corporate (3) 1,492.2 1,394.2 Total assets $ 6,313.2 $ 6,419.4 _______________________ (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. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
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 financial 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, 2015 . We revised our current derivative financial instrument asset and liability balances as of December 31, 2015 to eliminate certain intercompany derivative transactions. As a result, our total financial position as of December 31, 2015 decreased by $38.0 million . |
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 accompanying unaudited condensed financial 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 financial statements may not be representative of the results that may be expected for the year ending December 31, 2016 . |
Reclassifications | Reclassifications— Certain prior-year amounts have been reclassified to conform to the current year’s presentation. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In millions, except per share data) 2016 2015 Net income attributable to FMC Technologies, Inc. $ 19.8 $ 147.6 Weighted average number of shares outstanding 228.0 233.0 Dilutive effect of restricted stock units 0.6 0.9 Total shares and dilutive securities 228.6 233.9 Basic earnings per share attributable to FMC Technologies, Inc. $ 0.09 $ 0.63 Diluted earnings per share attributable to FMC Technologies, Inc. $ 0.09 $ 0.63 |
Restructuring and Impairment 28
Restructuring and Impairment Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Expense | Restructuring and impairment expense were as follows: Three Months Ended March 31, (In millions) 2016 2015 Restructuring expense: Subsea Technologies $ 0.1 $ 0.7 Surface Technologies 3.9 4.4 Energy Infrastructure 1.9 1.4 Total restructuring expense 5.9 6.5 Impairment expense: Subsea Technologies 0.1 0.3 Surface Technologies 34.3 3.6 Energy Infrastructure — — Total impairment expense 34.4 3.9 Total restructuring and impairment expense $ 40.3 $ 10.4 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Components Of Inventories | Inventories consisted of the following: (In millions) March 31, December 31, As Adjusted Raw materials $ 140.4 $ 149.9 Work in process 107.0 114.8 Finished goods 699.6 723.4 947.0 988.1 LIFO and valuation adjustments (227.3 ) (224.0 ) Inventories, net $ 719.7 $ 764.1 |
Equity Method Investments Equit
Equity Method Investments Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Summarized financial information for the entirety of FTO Services and Forsys Subsea is presented below. Three months ended March 31, (In millions) 2016 2015 (1) Revenue $ 8.4 $ — Gross profit (loss) (8.5 ) (0.4 ) Net income (loss) (29.4 ) (15.7 ) ______________________________ (1) Due to its formation in the second quarter of 2015, financial information for Forsys Subsea is not applicable for the three months ended March 31, 2015. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill by business segment was as follows: (In millions) Subsea Technologies Surface Technologies Energy Infrastructure Total December 31, 2015 $ 357.4 $ 71.9 $ 85.4 $ 514.7 UCOS ® product group transfer (1) 2.7 — (2.7 ) — Impairment (2) — (2.8 ) — (2.8 ) Translation 5.7 2.5 — 8.2 March 31, 2016 $ 365.8 $ 71.6 $ 82.7 $ 520.1 ______________________________ (1) Beginning in the first quarter of 2016, UCOS ® product group results are included in Subsea Technologies. Refer to Note 18 for additional disclosure. (2) Refer to Note 4 for additional disclosure related to impairment of goodwill during the three months ended March 31, 2016. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Instruments [Abstract] | |
Long-Term debt | Long-term debt consisted of the following: (In millions) March 31, December 31, Revolving credit facility $ — $ — Commercial paper (1) 421.3 337.2 2.00% Notes due 2017 299.3 299.1 3.45% Notes due 2022 497.6 497.5 Term loan 17.1 15.6 Capital leases 0.6 0.7 Total long-term debt 1,235.9 1,150.1 Less: current portion (17.5 ) (16.0 ) Long-term debt, less current portion $ 1,218.4 $ 1,134.1 _______________________ (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 March 31, 2016 and December 31, 2015 . As of March 31, 2016, our commercial paper borrowings had a weighted average interest rate of 1.14% . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Components of Stockholders' Equity | The following table summarizes activity within certain components of stockholders’ equity during the three months ended March 31, 2016 : (In millions) Common Stock Held in Treasury and Employee Benefit Trust Capital in Accumulated Balance as of December 31, 2015 $ (1,614.8 ) $ 759.0 $ (872.7 ) Other comprehensive income (loss) — — 83.8 Excess tax benefits on stock-based payment arrangements — (5.6 ) — Taxes withheld on issuance of stock-based awards — (7.7 ) — Purchases of treasury stock (30.5 ) 2.2 — Reissuances of treasury stock 15.4 (15.4 ) — Net purchases of common stock for employee benefit trust — (0.2 ) — Stock-based compensation (Note 14) — 18.3 — Other — (0.1 ) — Balance as of March 31, 2016 $ (1,629.9 ) $ 750.5 $ (788.9 ) |
Treasury stock activity | The following is a summary of our treasury stock activity for the three months ended March 31, 2016 and 2015 : (Number of shares in thousands) Treasury Stock Balance as of December 31, 2014 54,626 Stock awards (322 ) Treasury stock purchases 776 Balance as of March 31, 2015 55,080 Balance as of December 31, 2015 59,356 Stock awards (487 ) Treasury stock purchases 1,108 Balance as of March 31, 2016 59,977 |
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, 2015 $ (494.2 ) $ (87.1 ) $ (291.4 ) $ (872.7 ) Other comprehensive income (loss) before reclassifications, net of tax 33.1 23.7 — 56.8 Reclassification adjustment for net losses (gains) included in net income, net of tax — 22.6 4.4 27.0 Other comprehensive income (loss), net of tax 33.1 46.3 4.4 83.8 March 31, 2016 $ (461.1 ) $ (40.8 ) $ (287.0 ) $ (788.9 ) |
Reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive loss consisted of the following: Three Months Ended (In millions) March 31, 2016 March 31, 2015 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: $ (37.9 ) $ (26.4 ) Revenue 8.9 11.5 Cost of sales (0.1 ) (0.5 ) Selling, general and administrative expense (29.1 ) (15.4 ) Income before income taxes 6.5 2.4 Provision for income taxes $ (22.6 ) $ (13.0 ) Net income Defined pension and other post-retirement benefits Amortization of actuarial gain (loss) $ (6.2 ) $ (7.8 ) (a) Settlement cost (0.2 ) — (a) (6.4 ) (7.8 ) Income before income taxes 2.0 2.5 Provision for income taxes $ (4.4 ) $ (5.3 ) Net income _______________________ (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 13 for additional details). |
Pension And Other Post-retire34
Pension And Other Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit cost were as follows: Pension Benefits Three Months Ended March 31, 2016 2015 (In millions) U.S. Int’l U.S. Int’l Service cost $ 3.2 $ 3.0 $ 3.7 $ 4.1 Interest cost 7.1 3.5 6.6 3.7 Expected return on plan assets (11.2 ) (6.4 ) (11.0 ) (6.9 ) Amortization of actuarial loss (gain), net 3.9 2.5 4.9 3.2 Other — 0.2 — — Net periodic benefit cost $ 3.0 $ 2.8 $ 4.2 $ 4.1 Other Post-retirement Benefits Three Months Ended March 31, (In millions) 2016 2015 Interest cost $ 0.1 $ 0.1 Net periodic benefit cost $ 0.1 $ 0.1 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Restricted Stock Units Granted Disclosure | During the three months ended March 31, 2016, 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 982 Performance-based 387 * Market-based 193 * Total granted 1,562 $ 23.69 _______________________ * Assumes grant date expected payout |
Schedule of Market-Based Awards Share Payout | The following table summarizes the potential payouts for market-based awards for the three months ended March 31, 2016 : (Number of market-based awards in thousands) Minimum Maximum 2014 Market-based awards — 86 2015 Market-based awards — 123 2016 Market-based awards — 387 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, our portfolio of these instruments included the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (60.8 ) (17.1 ) Euro 19.2 21.8 Norwegian krone (150.8 ) (18.2 ) U.S. dollar 14.2 14.2 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 and recorded assets and liabilities in our consolidated balance sheets. At March 31, 2016, we held the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real 405.2 113.9 British pound 70.0 100.8 Canadian dollar (188.3 ) (146.0 ) Euro 163.2 185.9 Malaysian ringgit 114.9 29.5 Norwegian krone 1,633.4 197.4 Russian ruble (1,092.1 ) (16.2 ) Singapore dollar 164.1 122.2 U.S. dollar (769.6 ) (769.6 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | March 31, 2016 December 31, 2015 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 232.0 $ 381.3 $ 307.6 $ 488.2 Long-term – Derivative financial instruments 3.1 1.1 0.1 0.5 Total derivatives designated as hedging instruments 235.1 382.4 307.7 488.7 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 42.1 46.7 26.3 28.7 Long-term – Derivative financial instruments 0.6 — — — Total derivatives not designated as hedging instruments 42.7 46.7 26.3 28.7 Total derivatives $ 277.8 $ 429.1 $ 334.0 $ 517.4 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts $ (29.5 ) $ (53.6 ) |
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 March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ (1.9 ) $ (1.5 ) Cost of sales 1.4 0.1 Other income (expense), net (1) (5.9 ) 27.9 Total $ (6.4 ) $ 26.5 Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ (37.9 ) $ (26.4 ) Cost of sales 8.9 11.5 Selling, general and administrative expense (0.1 ) (0.5 ) Total $ (29.1 ) $ (15.4 ) Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion Three Months Ended March 31, (In millions) 2016 2015 Foreign exchange contracts: Revenue $ 3.6 $ 0.5 Cost of sales (5.1 ) (5.8 ) Total $ (1.5 ) $ (5.3 ) |
Offsetting Assets | March 31, 2016 December 31, 2015 (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 $ 277.8 $ (258.4 ) $ 19.4 $ 334.0 $ (316.8 ) $ 17.2 |
Offsetting Liabilities | March 31, 2016 December 31, 2015 (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 $ 429.1 $ (258.4 ) $ 170.7 $ 517.4 $ (316.8 ) $ 200.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured On A Recurring Basis At Fair Value | Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2016 December 31, 2015 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments: Equity securities $ 17.8 $ 17.8 $ — $ — $ 18.4 $ 18.4 $ — $ — Fixed income 5.0 5.0 — — 4.9 4.9 — — Money market fund 3.5 — 3.5 — 2.9 — 2.9 — Other investments 1.0 1.0 — — 1.0 1.0 — — Stable value fund (1) 1.2 1.2 Derivative financial instruments: Foreign exchange contracts 277.8 — 277.8 — 334.0 — 334.0 — Total assets $ 306.3 $ 23.8 $ 281.3 $ — $ 362.4 $ 24.3 $ 336.9 $ — Liabilities Derivative financial instruments: Foreign exchange contracts 429.1 — 429.1 — 517.4 — 517.4 — Total liabilities $ 429.1 $ — $ 429.1 $ — $ 517.4 $ — $ 517.4 $ — _______________________ (1) Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |
Warranty Cost And Accrual Information | Warranty cost and accrual information was as follows: Three Months Ended March 31, (In millions) 2016 2015 Balance at beginning of period $ 27.0 $ 23.0 Expense for new warranties 6.0 7.7 Adjustments to existing accruals 1.6 1.6 Claims paid (6.8 ) (8.2 ) Balance at end of period $ 27.8 $ 24.1 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In millions) 2016 2015 Segment revenue Subsea Technologies $ 864.0 $ 1,157.2 Surface Technologies 265.5 446.3 Energy Infrastructure 84.1 100.9 Other revenue (1) and intercompany eliminations (4.9 ) (9.2 ) Total revenue $ 1,208.7 $ 1,695.2 Income before income taxes: Segment operating profit (loss) : Subsea Technologies $ 109.5 $ 168.7 Surface Technologies (28.6 ) 62.9 Energy Infrastructure (3.3 ) 2.9 Total segment operating profit 77.6 234.5 Corporate items: Corporate expense (2) (14.3 ) (16.3 ) Other revenue (1) and other expense, net (3) (30.0 ) (26.4 ) Net interest expense (7.5 ) (7.3 ) Total corporate items (51.8 ) (50.0 ) Income before income taxes attributable to FMC Technologies, Inc. (4) $ 25.8 $ 184.5 _______________________ (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. |
Segment Operating Capital Employed And Segment Assets | Segment operating capital employed and assets were as follows: (In millions) March 31, 2016 December 31, 2015 Segment operating capital employed (1) : As Adjusted Subsea Technologies $ 2,081.2 $ 2,025.7 Surface Technologies 863.6 911.9 Energy Infrastructure 263.9 281.5 Total segment operating capital employed 3,208.7 3,219.1 Segment liabilities included in total segment operating capital employed (2) 1,612.3 1,806.1 Corporate (3) 1,492.2 1,394.2 Total assets $ 6,313.2 $ 6,419.4 Segment assets: Subsea Technologies $ 3,391.6 $ 3,512.3 Surface Technologies 1,088.7 1,131.9 Energy Infrastructure 377.7 396.7 Intercompany eliminations (37.0 ) (15.7 ) Total segment assets 4,821.0 5,025.2 Corporate (3) 1,492.2 1,394.2 Total assets $ 6,313.2 $ 6,419.4 _______________________ (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. |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Derivative Asset, Current | $ 274.1 | $ 333.9 |
Derivative Liability, Current | $ 428 | 516.9 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Derivative Asset, Current | (38) | |
Derivative Liability, Current | $ (38) |
New Accounting Standards (Chang
New Accounting Standards (Change in Accounting Principle) (Details) $ in Millions | Jan. 01, 2013USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 12.3 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income attributable to FMC Technologies, Inc. | $ 19.8 | $ 147.6 |
Weighted average number of shares outstanding | 228 | 233 |
Dilutive effect of restricted stock units and stock options | 0.6 | 0.9 |
Total shares and dilutive securities | 228.6 | 233.9 |
Basic earnings per share attributable to FMC Technologies, Inc. | $ 0.09 | $ 0.63 |
Diluted earnings per share attributable to FMC Technologies, Inc. | $ 0.09 | $ 0.63 |
Restructuring and Impairment 43
Restructuring and Impairment Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring and Impairment [Line Items] | ||
Restructuring expense | $ 5.9 | $ 6.5 |
Impairment expense | 34.4 | 3.9 |
Restructuring and impairment expense | 40.3 | 10.4 |
Subsea Technologies | ||
Restructuring and Impairment [Line Items] | ||
Restructuring expense | 0.1 | 0.7 |
Impairment expense | 0.1 | 0.3 |
Surface Technologies | ||
Restructuring and Impairment [Line Items] | ||
Restructuring expense | 3.9 | 4.4 |
Impairment expense | 34.3 | 3.6 |
Energy Infrastructure | ||
Restructuring and Impairment [Line Items] | ||
Restructuring expense | $ 1.9 | $ 1.4 |
Restructuring and Impairment 44
Restructuring and Impairment Expense (Impairments of Assets Held for Use) (Details) - Flowback - Surface Integrated Services - Surface Technologies $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |
Impairment of Long-Lived Assets Held-for-use | $ 12.4 |
Assets, Fair Value Disclosure, Nonrecurring | 44.7 |
Customer Relationships | |
Property, Plant and Equipment [Line Items] | |
Impairment of Intangible Assets, Finite-lived | $ 3.4 |
Restructuring and Impairment 45
Restructuring and Impairment Expense (Impairment of Assets of Held For Sale) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Property, Plant and Equipment [Line Items] | ||
Goodwill, Impairment Loss | $ 2.8 | |
Surface Technologies | ||
Property, Plant and Equipment [Line Items] | ||
Goodwill, Impairment Loss | 2.8 | [1] |
Wireline | Surface Integrated Services | Surface Technologies | ||
Property, Plant and Equipment [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 20 | |
Goodwill, Impairment Loss | 2.8 | |
Impairment of Long-Lived Assets to be Disposed of | $ 15.3 | |
[1] | Refer to Note 4 for additional disclosure related to impairment of goodwill during the three months ended March 31, 2016. |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | |
Gain (loss) on assets held for sale | $ (1.4) |
Assets of disposal group classified in other current assets | $ 17.9 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 140.4 | $ 149.9 |
Work in process | 107 | 114.8 |
Finished goods | 699.6 | 723.4 |
Inventory, gross | 947 | 988.1 |
LIFO and valuation adjustments | (227.3) | (224) |
Inventories, net | $ 719.7 | $ 764.1 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
FTO Services | ||
Equity Method Investments | ||
Ownership percentage | 50.00% | |
Loss from equity earnings in affiliates | $ 7.3 | $ 8.3 |
Carrying value | (20) | |
Unrecognized losses from equity in earnings of affiliates | $ 3.6 | |
Forsys Subsea | ||
Equity Method Investments | ||
Ownership percentage | 50.00% | |
Loss from equity earnings in affiliates | $ 4 |
Equity Method Investments (Sche
Equity Method Investments (Schedule of Equity Method Investments and Joint Ventures) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | [1] | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 8.4 | ||
Gross Profit (Loss) | (8.5) | $ (0.4) | |
Net Income (Loss) | $ (29.4) | $ (15.7) | |
[1] | Due to its formation in the second quarter of 2015, financial information for Forsys Subsea is not applicable for the three months ended March 31, 2015. |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Goodwill [Roll Forward] | ||
December 31, 2015 | $ 514.7 | |
Impairment | (2.8) | |
Translation | 8.2 | |
March 31, 2016 | 520.1 | |
Subsea Technologies | ||
Goodwill [Roll Forward] | ||
December 31, 2015 | 357.4 | |
UCOS product group transfer | 2.7 | [1] |
Translation | 5.7 | |
March 31, 2016 | 365.8 | |
Surface Technologies | ||
Goodwill [Roll Forward] | ||
December 31, 2015 | 71.9 | |
Impairment | (2.8) | [2] |
Translation | 2.5 | |
March 31, 2016 | 71.6 | |
Energy Infrastructure | ||
Goodwill [Roll Forward] | ||
December 31, 2015 | 85.4 | |
UCOS product group transfer | (2.7) | [1] |
March 31, 2016 | $ 82.7 | |
[1] | Beginning in the first quarter of 2016, UCOS® product group results are included in Subsea Technologies. Refer to Note 18 for additional disclosure. | |
[2] | Refer to Note 4 for additional disclosure related to impairment of goodwill during the three months ended March 31, 2016. |
Debt (Schedule Of Long-Term Deb
Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Commercial paper | [1] | 421.3 | 337.2 |
Term loan | 17.1 | 15.6 | |
Capital leases | 0.6 | 0.7 | |
Total long-term debt | 1,235.9 | 1,150.1 | |
Less: current portion | (17.5) | (16) | |
Long-term debt, less current portion | $ 1,218.4 | 1,134.1 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Commercial paper borrowings weighted average interest rate, as a percent | 1.14% | ||
Senior Notes 2017 | |||
Debt Instrument [Line Items] | |||
Senior notes, noncurrent | $ 299.3 | $ 299.1 | |
Senior notes, interest rate, as a percent | 2.00% | 2.00% | |
Senior Notes 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes, noncurrent | $ 497.6 | $ 497.5 | |
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 March 31, 2016 and December 31, 2015. As of March 31, 2016, our commercial paper borrowings had a weighted average interest rate of 1.14%. |
Commitments And Contingent Li52
Commitments And Contingent Liabilities Guarantees (Details) - Indirect Guarantee of Indebtedness $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Guarantor obligations, maximum exposure, undiscounted | $ 40 |
Guarantor obligations, term | P2Y |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity [Line Items] | ||
Cash dividends declared | $ 0 | $ 0 |
Remaining shares of common stock available for purchase (in shares) | 16,700,000 | |
Cumulative Number Of Shares Authorized For Repurchase | ||
Stockholders' Equity [Line Items] | ||
Authorized stock repurchase (in shares) | 90,000,000 | |
Share Repurchase Program | ||
Stockholders' Equity [Line Items] | ||
Value of common stock repurchased | $ 28.3 | $ 30.8 |
Stockholders' Equity (Component
Stockholders' Equity (Components of Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Capitalization, Equity [Line Items] | ||
Balance as of December 31, 2015 | $ 2,543.2 | |
Other comprehensive income (loss) | 83.8 | $ (124.1) |
Balance as of March 31, 2016 | 2,620.2 | |
Common Stock Held In Treasury And Employee Benefit Trust | ||
Schedule of Capitalization, Equity [Line Items] | ||
Balance as of December 31, 2015 | (1,614.8) | |
Purchases of treasury stock | (30.5) | |
Reissuances of treasury stock | 15.4 | |
Balance as of March 31, 2016 | (1,629.9) | |
Additional Paid-in Capital | ||
Schedule of Capitalization, Equity [Line Items] | ||
Balance as of December 31, 2015 | 759 | |
Excess tax benefits on stock-based payment arrangements | (5.6) | |
Taxes withheld on issuance of stock-based awards | (7.7) | |
Purchases of treasury stock | 2.2 | |
Reissuances of treasury stock | (15.4) | |
Net purchases of common stock for employee benefit trust | (0.2) | |
Stock-based compensation (Note 14) | 18.3 | |
Other | (0.1) | |
Balance as of March 31, 2016 | 750.5 | |
AOCI Attributable to Parent | ||
Schedule of Capitalization, Equity [Line Items] | ||
Balance as of December 31, 2015 | (872.7) | |
Other comprehensive income (loss) | 83.8 | |
Balance as of March 31, 2016 | $ (788.9) |
Stockholders' Equity (Treasury
Stockholders' Equity (Treasury stock activity) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||
Beginning balance (in shares) | 59,356 | 54,626 |
Stock awards (in shares) | (487) | (322) |
Treasury stock purchases (in shares) | 1,108 | 776 |
Ending balance (in shares) | 59,977 | 55,080 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) | |||
December 31, 2015 | $ (872.7) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 56.8 | ||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 27 | ||
Other comprehensive income (loss), net of tax | 83.8 | $ (124.1) | |
March 31, 2016 | (788.9) | ||
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) | |||
December 31, 2015 | (494.2) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 33.1 | ||
Other comprehensive income (loss), net of tax | [1] | 33.1 | |
March 31, 2016 | (461.1) | ||
Hedging | |||
Accumulated Other Comprehensive Income (Loss) | |||
December 31, 2015 | (87.1) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 23.7 | ||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 22.6 | ||
Other comprehensive income (loss), net of tax | [2] | 46.3 | |
March 31, 2016 | (40.8) | ||
Defined Pension and Other Post-retirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) | |||
December 31, 2015 | (291.4) | ||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 4.4 | ||
Other comprehensive income (loss), net of tax | [3] | 4.4 | |
March 31, 2016 | $ (287) | ||
[1] | Net of income tax (expense) benefit of $(2.0) and $8.3 for the three months ended March 31, 2016 and 2015, respectively. | ||
[2] | Net of income tax (expense) benefit of $(12.3) and $9.8 for the three months ended March 31, 2016 and 2015, respectively. | ||
[3] | Net of income tax (expense) benefit of $(1.9) and $(2.5) for the three months ended March 31, 2016 and 2015, respectively. |
Stockholder's Equity (Reclassif
Stockholder's Equity (Reclassification out of Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||
Selling, general and administrative expense | $ (143.4) | $ (174) | |
Research and development expense | (33.6) | (29.6) | |
Interest expense | (7.5) | (7.3) | |
Income before income taxes | 25.8 | 185 | |
Provision for income taxes | (6) | (36.9) | |
Net income | 19.8 | 148.1 | |
Reclassification out of Accumulated Other Comprehensive Income | Hedging | Foreign Exchange Contract | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Revenue | (37.9) | (26.4) | |
Cost of sales | 8.9 | 11.5 | |
Selling, general and administrative expense | (0.1) | (0.5) | |
Income before income taxes | (29.1) | (15.4) | |
Provision for income taxes | 6.5 | 2.4 | |
Net income | (22.6) | (13) | |
Reclassification out of Accumulated Other Comprehensive Income | Defined Pension and Other Post-retirement Benefits | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Amortization of actuarial gain (loss) | [1] | (6.2) | (7.8) |
Settlement cost | [1] | (0.2) | |
Income before income taxes | (6.4) | (7.8) | |
Provision for income taxes | 2 | 2.5 | |
Net income | $ (4.4) | $ (5.3) | |
[1] | (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 13 for additional details). |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, as a percent | 23.40% | 20.00% |
Effective tax rate excluding effects of change in indefinite reinvestment assertion, as a percent | 26.60% |
Pension And Other Post-retire59
Pension And Other Post-retirement Benefits (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
United States Pension Plans of US Entity, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 3.2 | $ 3.7 |
Interest cost | 7.1 | 6.6 |
Expected return on plan assets | (11.2) | (11) |
Amortization of actuarial loss (gain), net | 3.9 | 4.9 |
Net periodic benefit cost | 3 | 4.2 |
Pension contributions | 0.1 | |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Service cost | 3 | 4.1 |
Interest cost | 3.5 | 3.7 |
Expected return on plan assets | (6.4) | (6.9) |
Amortization of actuarial loss (gain), net | 2.5 | 3.2 |
Other | 0.2 | |
Net periodic benefit cost | 2.8 | 4.1 |
Pension contributions | 8.2 | |
Other Post-retirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Interest cost | 0.1 | 0.1 |
Net periodic benefit cost | $ 0.1 | $ 0.1 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Market Based Award Measurement Period | 3 years | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock-based compensation expense for nonvested stock units | $ 18.3 | $ 19.8 |
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) | 774,000 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule Of Restricted Stock) (Details) shares in Thousands | 3 Months Ended | |
Mar. 31, 2016$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 1,562 | |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 23.69 | |
Time-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 982 | |
Performance-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 387 | [1] |
Market-based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of restricted stock units granted to employees (in shares) | 193 | [1] |
[1] | *Assumes grant date expected payout |
Stock-based Compensation (Sch62
Stock-based Compensation (Schedule of Market-Based Awards) (Details) | 3 Months Ended |
Mar. 31, 2016shares | |
2014 Market-based awards | Minimum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 0 |
2014 Market-based awards | Maximum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 86,000 |
2015 Market-based awards | Minimum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 0 |
2015 Market-based awards | Maximum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 123,000 |
2016 Market-based awards | Minimum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 0 |
2016 Market-based awards | Maximum | |
Schedule of Market-Based Awards Payout [Line Items] | |
Share-based compensation arrangement by share-based payment award, restricted stock units, expected payout (in shares) | 387,000 |
Derivative Financial Instrume63
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivative | |||
Gain (loss) on discontinuation of cash flow hedge due to forecasted transaction probable of not occurring, net | $ (1) | $ (0.9) | |
Cash flow hedges of forecasted transactions, net of tax, in accumulated OCI gain (loss) | (40.8) | $ (87.1) | |
Cash flow hedge gain (loss) expected to be reclassified within 12 months | $ (25.6) | ||
Hedges maturity year | 2,017 |
Derivative Financial Instrume64
Derivative Financial Instruments (Schedule Of Notional Amounts Of Outstanding Derivative Positions) (Details) - Mar. 31, 2016 € in Millions, £ in Millions, SGD in Millions, RUB in Millions, NOK in Millions, MYR in Millions, CAD in Millions, BRL in Millions, $ in Millions | USD ($) | BRL | NOK | SGD | MYR | EUR (€) | CAD | GBP (£) | RUB |
Foreign Exchange Forward | Brazilian real | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | $ 113.9 | BRL 405.2 | |||||||
Foreign Exchange Forward | British pound | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 100.8 | £ 70 | |||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Sold | |||||||||
Derivative | |||||||||
Derivative, notional amount | 146 | CAD 188.3 | |||||||
Foreign Exchange Forward | Euro | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 185.9 | € 163.2 | |||||||
Foreign Exchange Forward | Malaysia, Ringgits | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 29.5 | MYR 114.9 | |||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 197.4 | NOK 1,633.4 | |||||||
Foreign Exchange Forward | Russian ruble | Notional Amount Sold | |||||||||
Derivative | |||||||||
Derivative, notional amount | 16.2 | RUB 1,092.1 | |||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 122.2 | SGD 164.1 | |||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | |||||||||
Derivative | |||||||||
Derivative, notional amount | 769.6 | ||||||||
Embedded Derivative Financial Instruments | Brazilian real | Notional Amount Sold | |||||||||
Derivative | |||||||||
Derivative, notional amount | 17.1 | BRL 60.8 | |||||||
Embedded Derivative Financial Instruments | Euro | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | 21.8 | € 19.2 | |||||||
Embedded Derivative Financial Instruments | Norwegian krone | Notional Amount Sold | |||||||||
Derivative | |||||||||
Derivative, notional amount | 18.2 | NOK 150.8 | |||||||
Embedded Derivative Financial Instruments | U.S. dollar | Notional Amount Bought | |||||||||
Derivative | |||||||||
Derivative, notional amount | $ 14.2 |
Derivative Financial Instrume65
Derivative Financial Instruments (Fair Value Of Derivative Instruments In Statement Of Financial Position) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Derivative assets | $ 277.8 | $ 334 |
Derivative liabilities | 429.1 | 517.4 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 235.1 | 307.7 |
Derivative liabilities | 382.4 | 488.7 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 232 | 307.6 |
Derivative liabilities | 381.3 | 488.2 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 3.1 | 0.1 |
Derivative liabilities | 1.1 | 0.5 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 42.7 | 26.3 |
Derivative liabilities | 46.7 | 28.7 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 42.1 | 26.3 |
Derivative liabilities | 46.7 | $ 28.7 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | $ 0.6 |
Derivative Financial Instrume66
Derivative Financial Instruments (Derivative Instruments In Cash Flow Hedging Relationships Gain (Loss)) (Details) - Foreign Exchange Contract - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | $ (6.4) | $ 26.5 | |
Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | (1.9) | (1.5) | |
Cost of Sales | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | 1.4 | 0.1 | |
Other Income (Expense), Net | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | [1] | (5.9) | 27.9 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in OCI (Effective Portion) | (29.5) | (53.6) | |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (29.1) | (15.4) | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1.5) | (5.3) | |
Cash Flow Hedging | Revenue | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (37.9) | (26.4) | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3.6 | 0.5 | |
Cash Flow Hedging | Cost of Sales | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 8.9 | 11.5 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (5.1) | (5.8) | |
Cash Flow Hedging | Selling, General and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (0.1) | $ (0.5) | |
[1] | Other income (expense), net excludes asset and liability remeasurement gains and losses. |
Derivative Financial Instrume67
Derivative Financial Instruments Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Assets Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 277.8 | 334 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (258.4) | (316.8) |
Net Amount | $ 19.4 | $ 17.2 |
Derivative Financial Instrume68
Derivative Financial Instruments Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 429.1 | 517.4 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (258.4) | (316.8) |
Net Amount | $ 170.7 | $ 200.6 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 2017 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes, interest rate, as a percent | 2.00% | 2.00% |
Senior Notes 2022 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes, interest rate, as a percent | 3.45% | 3.45% |
Senior Notes Total | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes, fair value | $ 771.1 | $ 761.9 |
Senior notes, face value | $ 800 | $ 800 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Equity securities | $ 17.8 | $ 18.4 | |
Fixed income | 5 | 4.9 | |
Money market fund | 3.5 | 2.9 | |
Other investments | 1 | 1 | |
Stable value fund | [1] | 1.2 | 1.2 |
Foreign exchange contracts | 277.8 | 334 | |
Total assets | 306.3 | 362.4 | |
Foreign exchange contracts | 429.1 | 517.4 | |
Total liabilities | 429.1 | 517.4 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Equity securities | 17.8 | 18.4 | |
Fixed income | 5 | 4.9 | |
Other investments | 1 | 1 | |
Total assets | 23.8 | 24.3 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Money market fund | 3.5 | 2.9 | |
Foreign exchange contracts | 277.8 | 334 | |
Total assets | 281.3 | 336.9 | |
Foreign exchange contracts | 429.1 | 517.4 | |
Total liabilities | $ 429.1 | $ 517.4 | |
[1] | Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. |
Warranty Obligations (Schedule
Warranty Obligations (Schedule Of Warranty Cost And Accrual Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of period | $ 27 | $ 23 |
Expense for new warranties | 6 | 7.7 |
Adjustments to existing accruals | 1.6 | 1.6 |
Claims paid | (6.8) | (8.2) |
Balance at end of period | $ 27.8 | $ 24.1 |
Business Segments (Schedule Of
Business Segments (Schedule Of Segment Revenue And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information | |||
Total revenue | $ 1,208.7 | $ 1,695.2 | |
Total segment operating profit | 77.6 | 234.5 | |
Net interest expense | (7.5) | (7.3) | |
Income before income taxes attributable to FMC Technologies, Inc. | [1] | 25.8 | 184.5 |
Operating segments | Subsea Technologies | |||
Segment Reporting Information | |||
Total revenue | 864 | 1,157.2 | |
Total segment operating profit | 109.5 | 168.7 | |
Operating segments | Surface Technologies | |||
Segment Reporting Information | |||
Total revenue | 265.5 | 446.3 | |
Total segment operating profit | (28.6) | 62.9 | |
Operating segments | Energy Infrastructure | |||
Segment Reporting Information | |||
Total revenue | 84.1 | 100.9 | |
Total segment operating profit | (3.3) | 2.9 | |
Segment reconciling items | |||
Segment Reporting Information | |||
Total revenue | [2] | (4.9) | (9.2) |
Corporate items | |||
Segment Reporting Information | |||
Corporate expense | [3] | (14.3) | (16.3) |
Other revenue and other expense, net | [2],[4] | (30) | (26.4) |
Net interest expense | (7.5) | (7.3) | |
Total corporate items | $ (51.8) | $ (50) | |
[1] | Excludes amounts attributable to noncontrolling interests. | ||
[2] | Other revenue comprises certain unrealized gains and losses on derivative instruments related to unexecuted sales contracts. | ||
[3] | Corporate expense primarily includes corporate staff expenses. | ||
[4] | 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 Segments (Segment Oper
Business Segments (Segment Operating Capital Employed And Segment Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information | |||
Total assets | $ 6,313.2 | $ 6,419.4 | |
Operating segments | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 3,208.7 | 3,219.1 |
Total assets | 4,821 | 5,025.2 | |
Operating segments | Subsea Technologies | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 2,081.2 | 2,025.7 |
Total assets | 3,391.6 | 3,512.3 | |
Operating segments | Surface Technologies | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 863.6 | 911.9 |
Total assets | 1,088.7 | 1,131.9 | |
Operating segments | Energy Infrastructure | |||
Segment Reporting Information | |||
Total segment operating capital employed | [1] | 263.9 | 281.5 |
Total assets | 377.7 | 396.7 | |
Segment reconciling items | |||
Segment Reporting Information | |||
Segment liabilities included in total segment operating capital employed | [2] | 1,612.3 | 1,806.1 |
Intercompany eliminations | |||
Segment Reporting Information | |||
Total assets | (37) | (15.7) | |
Corporate | |||
Segment Reporting Information | |||
Total assets | [3] | $ 1,492.2 | $ 1,394.2 |
[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. |