Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | TechnipFMC plc (the “Company”) is filing this Amendment No. 1 (“Form 10-Q/A”) to our Quarterly Report on Form 10-Q for the quarter-ended March 31, 2017, which was originally filed (“Original Filing”) on May 4, 2017, to reflect the restatement of its unaudited interim condensed consolidated U.S. GAAP financial statements for all periods presented in the Original Filing and to amend related disclosures, including our conclusion on disclosure controls and procedures, in order to correct errors in our financial statements caused by the miscalculation of the foreign currency effects on certain of our engineering and construction projects and related ownership interests, as more fully described in Note 2 to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q/A. Additionally, conforming changes occur throughout this filing because of the changes to the condensed consolidated financial statements. | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | fti | |
Entity Registrant Name | TechnipFMC plc | |
Entity Central Index Key | 1,681,459 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 466,592,009 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Revenue: | ||||
Service revenue | $ 2,791.8 | $ 2,378.2 | ||
Product revenue | 562.5 | 27.5 | ||
Lease and other revenue | 33.7 | |||
Total revenue | 3,388 | 2,405.7 | ||
Costs and expenses: | ||||
Cost of service revenue | 2,377.6 | 1,983.9 | ||
Cost of product revenue | 577.7 | 21.8 | ||
Cost of lease and other revenue | 25 | |||
Selling, general and administrative expense | 254.1 | 147.6 | ||
Research and development expense | 43.4 | 20.3 | ||
Restructuring and impairment expense (Note 6) | 9.7 | 35.7 | ||
Merger transaction and integration costs (Note 3) | 54.7 | |||
Total costs and expenses | 3,342.2 | 2,209.3 | ||
Other income (expense), net | 63.5 | (42.1) | ||
Income from equity affiliates (Note 9) | 9.4 | 25.5 | [1] | |
Income before net interest expense and income taxes | 118.7 | 179.8 | ||
Net interest expense | (82.1) | (13.3) | ||
Income before income taxes | [2] | 36.6 | 166.5 | |
Provision for income taxes (Note 15) | 51.8 | 45.9 | ||
Net income (loss) | (15.2) | 120.6 | ||
Net (income) loss attributable to noncontrolling interests | (3.5) | 0.1 | ||
Net income (loss) attributable to TechnipFMC plc | $ (18.7) | $ 120.7 | ||
Earnings per share attributable to TechnipFMC plc (Note 5): | ||||
Basic (usd per share) | $ (0.04) | $ 1.02 | ||
Diluted (usd per share) | $ (0.04) | $ 0.97 | ||
Weighted average shares outstanding (Note 5): | ||||
Basic (in shares) | 466.6 | 118.2 | ||
Diluted (in shares) | 466.6 | 124.4 | ||
[1] | Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. | |||
[2] | Includes amounts attributable to noncontrolling interests. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Net income (loss) | $ (15.2) | $ 120.6 | |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | [1] | 6.6 | (41.6) |
Net unrealized gains (losses) on available-for-sale securities: | |||
Net unrealized gains arising during the period | 0.8 | 2.4 | |
Reclassification adjustment for net gains (losses) included in net income | 0 | 0 | |
Net unrealized gains on available-for-sale securities | [2] | 0.8 | 2.4 |
Net gains (losses) on hedging instruments: | |||
Net gains arising during the period | 24.7 | (32.4) | |
Reclassification adjustment for net (gains) losses included in net income | 34.4 | 42.8 | |
Net gains (losses) on hedging instruments | [3] | 59.1 | 10.4 |
Pension and other post-retirement benefits: | |||
Reclassification adjustment for amortization of prior service cost included in net income | 0.1 | ||
Reclassification adjustment for amortization of net actuarial loss included in net income | 0.4 | 0.1 | |
Net pension and other post-retirement benefits (costs) | [4] | 0.5 | 0.1 |
Other comprehensive income (loss), net of tax | 67 | (28.7) | |
Comprehensive income | 51.8 | 91.9 | |
Comprehensive (income) loss attributable to noncontrolling interest | (3.7) | 0.9 | |
Comprehensive income attributable to TechnipFMC plc | $ 48.1 | $ 92.8 | |
[1] | Net of income tax (expense) benefit of $(0.7) and nil for the three months ended March 31, 2017 and 2016, respectively. | ||
[2] | Net of income tax (expense) benefit of nil and nil for the three months ended March 31, 2017 and 2016, respectively. | ||
[3] | Net of income tax (expense) benefit of $(18.6) and $(7.6) for the three months ended March 31, 2017 and 2016, respectively. | ||
[4] | Net of income tax (expense) benefit of $0.2 and $0.1 for the three months ended March 31, 2017 and 2016, respectively. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Foreign currency translation adjustments, tax (expense) benefit | $ (0.7) | $ 0 |
Net unrealized gains (losses) on available-for-sale securities, tax (expense) benefit | 0 | 0 |
Net gains (losses) on hedging instruments, tax (expense) benefit | (18.6) | (7.6) |
Net pensions and other post-retirement benefits, tax (expense) benefit | $ 0.2 | $ 0.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 7,041.7 | $ 6,269.3 |
Trade receivables, net of allowances of $104.2 in 2017 and $85.6 in 2016 | 2,433.3 | 2,024.5 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,036.8 | 485.8 |
Inventories, net (Note 7) | 983.5 | 334.7 |
Derivative financial instruments (Note 18) | 84.6 | 47.2 |
Income taxes receivable | 381.7 | 265 |
Advances paid to suppliers | 682.8 | 711.5 |
Other current assets (Note 8) | 1,090.4 | 799.2 |
Total current assets | 13,734.8 | 10,937.2 |
Investments in equity affiliates | 207.6 | 177.8 |
Property, plant and equipment, net of accumulated depreciation of $1,765.0 in 2017 and $1,691.8 in 2016 | 3,975.5 | 2,620.1 |
Goodwill | 9,023.6 | 3,718.3 |
Intangible assets, net of accumulated amortization of $316.6 in 2017 and $245.9 in 2016 | 1,501.2 | 173.7 |
Deferred income taxes | 643.6 | 621.6 |
Derivative financial instruments (Note 18) | 128.7 | 190.8 |
Other assets | 400.9 | 250.2 |
Total assets | 29,615.9 | 18,689.7 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt (Note 11) | 499 | 683.6 |
Accounts payable, trade | 4,131.5 | 3,837.7 |
Advance payments | 314.9 | 411.1 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,701.1 | 3,323 |
Accrued payroll | 403.8 | 307.7 |
Derivative financial instruments (Note 18) | 180.5 | 183 |
Income taxes payable | 298.3 | 317.5 |
Other current liabilities (Note 10) | 2,190.3 | 1,825.3 |
Total current liabilities | 11,719.4 | 10,888.9 |
Long-term debt, less current portion (Note 11) | 3,082.8 | 1,869.3 |
Accrued pension and other post-retirement benefits, less current portion | 352 | 160.8 |
Derivative financial instruments (Note 18) | 158.7 | 227.7 |
Deferred income taxes | 530.9 | 130.5 |
Other liabilities (Note 12) | 389.9 | 300.6 |
Commitments and contingent liabilities (Note 13) | ||
Stockholders' equity (Note 14): | ||
Ordinary shares, $1.00 par value and €0.7625 in 2017 and 2016, respectively; 525.0 shares and 119.2 shares authorized in 2017 and 2016, respectively; 347.4 shares and 3.3 shares issued in 2017 and 2016, respectively; no shares and 3.2 shares canceled in 2017 and 2016, respectively; 466.6 and 118.9 shares outstanding in 2017 and 2016, respectively | 466.6 | 114.7 |
Ordinary shares held in employee benefit trust, at cost; 0.1 shares in 2017 | (5.4) | |
Treasury stock, at cost; no shares and 0.3 shares in 2017 and 2016, respectively | (44.5) | |
Capital in excess of par value of ordinary shares | 10,507.6 | 2,694.7 |
Retained earnings | 3,397.4 | 3,416.1 |
Accumulated other comprehensive loss | (990.4) | (1,057.4) |
Total TechnipFMC plc stockholders' equity | 13,375.8 | 5,123.6 |
Noncontrolling interests | 6.4 | (11.7) |
Total equity | 13,382.2 | 5,111.9 |
Total liabilities and equity | $ 29,615.9 | $ 18,689.7 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) $ in Millions | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016€ / shares | Dec. 31, 2016USD ($)shares |
Statement of Financial Position [Abstract] | |||
Receivables, allowances | $ | $ 104.2 | $ 85.6 | |
Property, plant and equipment, accumulated depreciation | $ | 1,765 | 1,691.8 | |
Intangible assets, accumulated amortization | $ | $ 316.6 | $ 245.9 | |
Ordinary shares, par value (in dollars/EUR per share) | (per share) | $ 1 | € 0.7625 | |
Ordinary shares, shares authorized (in shares) | 525,000,000 | 119,200,000 | |
Ordinary shares, shares issued (in shares) | 347,400,000 | 3,300,000 | |
Canceled shares (in shares) | 0 | 3,200,000 | |
Ordinary shares, shares outstanding (in shares) | 466,600,000 | 118,900,000 | |
Ordinary shares, held in employee benefit trust (in shares) | 100,000 | ||
Treasury stock (in shares) | 0 | 300,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash provided (required) by operating activities: | ||
Net income (loss) | $ (15.2) | $ 120.6 |
Adjustments to reconcile net income to cash provided (required) by operating activities: | ||
Depreciation | 83.2 | 69.4 |
Amortization | 68 | 5.2 |
Employee benefit plan and stock-based compensation costs | 8.1 | 6 |
Unrealized (gain) loss on derivative instruments and foreign exchange | (10.7) | 27.6 |
Deferred income tax provision (benefit) | 4 | (19.8) |
Impairments (Note 6) | 0.4 | |
Other | 54 | (2.1) |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Trade receivables, net and costs in excess of billings | 267.7 | 8.8 |
Inventories, net | 126.6 | 42 |
Accounts payable, trade | (168.8) | (84) |
Advance payments and billings in excess of costs | 43.3 | (83.4) |
Income taxes payable (receivable), net | (88.1) | 7.2 |
Other assets and liabilities, net | (221.5) | 62.9 |
Cash provided by operating activities | 151 | 160.4 |
Cash provided (required) by investing activities: | ||
Capital expenditures | (51.2) | (25.5) |
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. (Note 3) | 1,479.2 | |
Proceeds from sale of assets | 4.4 | 0.5 |
Other | 10.5 | |
Cash provided (required) by investing activities | 1,442.9 | (25) |
Cash provided (required) by financing activities: | ||
Net increase (decrease) in short-term debt | 4.2 | (694.4) |
Net increase (decrease) in commercial paper | (290.2) | 11 |
Proceeds from issuance of long-term debt | 438.4 | |
Repayments of long-term debt | (534.1) | (4.8) |
Payments related to taxes withheld on stock-based compensation | (46.6) | |
Other | 1.2 | (19.4) |
Cash required by financing activities | (865.5) | (269.2) |
Effect of changes in foreign exchange rates on cash and cash equivalents | 44 | (97.7) |
Increase (decrease) in cash and cash equivalents | 772.4 | (231.5) |
Cash and cash equivalents, beginning of period | 6,269.3 | 3,178 |
Cash and cash equivalents, end of period | $ 7,041.7 | $ 2,946.5 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Millions | Total | Ordinary Shares | Ordinary Shares Held in Treasury and Employee Benefit Trust | Capital in Excess of Par Value of Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2016 | $ 5,111.9 | $ 114.7 | $ (44.5) | $ 2,694.7 | $ 3,416.1 | $ (1,057.4) | $ (11.7) |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (15.2) | (18.7) | 3.5 | ||||
Other comprehensive income | 67 | 67 | |||||
Issuance of ordinary shares due to the Merger of FMC Technologies and Technip | 8,170.7 | 351.9 | (6.6) | 7,825.4 | |||
Cancellation of treasury stock (Note 14) | 21.3 | 44.5 | (23.2) | ||||
Net sales of ordinary shares for employee benefit trust | 1.2 | 1.2 | |||||
Stock-based compensation (Note 17) | 11.4 | 11.4 | |||||
Other | 13.9 | (0.7) | 14.6 | ||||
Ending balance at Mar. 31, 2017 | $ 13,382.2 | $ 466.6 | $ (5.4) | $ 10,507.6 | $ 3,397.4 | $ (990.4) | $ 6.4 |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis Of Presentation and Significant Accounting Policies | NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC”) 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. 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 consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments as well as adjustments to our financial position pursuant to a business combination, necessary for a fair statement 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, 2017. In this Quarterly Report on Form 10-Q/A, Since TechnipFMC is the successor company to Technip, we are presenting the results of Technip’s operations for the three months ended March 31, 2016 and as of December 31, 2016. Refer to Note 3 for further information related to the merger of FMC Technologies and Technip. Principles of consolidation Use of estimates Investments in the common stock of unconsolidated affiliates Investments in unconsolidated affiliates are assessed for impairment whenever events or changes in facts and circumstances indicate the carrying value of the investments may not be fully recoverable. When such a condition is subjectively determined to be other than temporary, the carrying value of the investment is written down to fair value. Management’s assessment as to whether any decline in value is other than temporary is based on our ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. Management generally considers our investments in equity method investees to be strategic, long-term investments and completes its assessments for impairment with a long-term viewpoint. Investments in which ownership is less than 20% or that do not represent significant investments are reported in other assets on the consolidated balance sheets. Where no active market exists and where no other valuation method can be used, these financial assets are maintained at historical cost, less any accumulated impairment losses. Business combinations— Revenue recognition For certain construction-type manufacturing and assembly projects that involve significant design and engineering efforts to satisfy detailed customer specifications, revenue is recognized using the percentage of completion method of accounting. Under the percentage of completion method, revenue is recognized as work progresses on each contract. We apply the ratio of costs incurred to date to total estimated contract costs at completion or on physical progress defined for the main deliverables under the contracts. If it is not possible to form a reliable estimate of progress toward completion, no revenue or costs are recognized until the project is complete or substantially complete. Any expected losses on construction-type contracts in progress are charged to earnings, in total, in the period the losses are identified. Modifications to construction-type contracts, referred to as “change orders,” effectively change the provisions of the original contract, and may, for example, alter the specifications or design, method or manner of performance, equipment, materials, sites and/or period for completion of the work. If a change order represents a firm price commitment from a customer, we account for the revised estimate as if it had been included in the original estimate, effectively recognizing the pro rata impact of the new estimate on our calculation of progress toward completion in the period in which the firm commitment is received. If a change order is unpriced: (1) we include the costs of contract performance in our calculation of progress toward completion in the period in which the costs are incurred or become probable; and (2) when it is determined that the revenue is probable of recovery, we include the change order revenue, limited to the costs incurred to date related to the change order, in our calculation of progress toward completion. Unpriced change orders included in revenue were immaterial to our consolidated revenue for all periods presented. Margin is not recorded on unpriced change orders unless realization is assured beyond a reasonable doubt. The assessment of realization may be based upon our previous experience with the customer or based upon our receipt of a firm price commitment from the customer. Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Revenue in excess of progress billings are reported in costs and estimated earnings in excess of billings on uncompleted contracts in our condensed consolidated balance sheets. Progress billings and cash collections in excess of revenue recognized on a contract are classified as billings in excess of costs and estimated earnings on uncompleted contracts and advance payments, respectively, in our condensed consolidated balance sheets. Revenue generated from the installation portion of construction-type contracts is included in service and product revenue in our condensed consolidated statements of income. Cash equivalents Trade receivables, net of allowances Inventories last-in, first-out first-in, first-out Impairment of property, plant and equipment Long-lived assets classified as held for sale are reported at the lower of carrying value or fair value less cost to sell. Goodwill two-step Debt instruments— Fair value measurements • Level 1 • Level 2 • Level 3 Income taxes U.S. income taxes are not provided on our equity in undistributed earnings of foreign subsidiaries or affiliates to the extent we have determined that the earnings are indefinitely reinvested. U.S. income taxes are provided on such earnings in the period in which we can no longer support that such earnings are indefinitely reinvested. Tax benefits related to uncertain tax positions are recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We classify interest expense and penalties recognized on underpayments of income taxes as income tax expense. Stock-based employee compensation Ordinary shares held in employee benefit trust Non-Qualified Treasury shares Earnings per ordinary share (“EPS”) Convertible bonds that could be converted into or be exchangeable for new or existing shares would additionally result in a dilution of earnings per share. The common shares assumed to be converted as of the issuance date are included to compute diluted EPS under the if-converted after-tax Foreign currency non-highly non-current For certain committed and anticipated future cash flows and recognized assets and liabilities which are denominated in a foreign currency, we may choose to manage our risk against changes in the exchange rates, when compared against the functional currency, through the economic netting of exposures instead of derivative instruments. Cash outflows or liabilities in a foreign currency are matched against cash inflows or assets in the same currency, such that movements in exchanges rates will result in offsetting gains or losses. Due to the inherent unpredictability of the timing of cash flows, gains and losses in the current period may be economically offset by gains and losses in a future period. All gains and losses are recorded in our consolidated statements of income in the period in which they are incurred. Gains and losses from the remeasurement of assets and liabilities are recognized in other income (expense), net. Derivative instruments— non-current Hedge accounting is only applied when the derivative is deemed to be highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive income (loss) until the underlying transactions are recognized in earnings. At such time, related deferred hedging gains or losses are recorded in earnings on the same line as the hedged item. Effectiveness is assessed at the inception of the hedge and on a quarterly basis. Effectiveness of forward contract cash flow hedges are assessed based solely on changes in fair value attributable to the change in the spot rate. The change in the fair value of the contract related to the change in forward rates is excluded from the assessment of hedge effectiveness. Changes in this excluded component of the derivative instrument, along with any ineffectiveness identified, are recorded in earnings as incurred. We document our risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. We also use forward contracts to hedge foreign currency assets and liabilities, for which we do not apply hedge accounting. The changes in fair value of these contracts are recognized in other income (expense), net on our condensed consolidated statements of income, as they occur and offset gains or losses on the remeasurement of the related asset or liability. |
Restatement of Financial Statem
Restatement of Financial Statement | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Financial Statement | NOTE 2. RESTATEMENT OF FINANCIAL STATEMENTS In the Original Filing, we recognized significant net foreign exchange gains. In July 2017, incremental reviews were performed on the gains and losses from foreign currency denominated transactions which operate as natural hedges on its projects. For each project, a currency rate is established at the time the project is awarded, and this “project rate” is used to measure foreign currency gains and losses throughout the life of the project for project performance purposes. Periodic remeasurement of foreign exchange gains and losses is required for financial statement reporting. During our review, management found that there were errors in the rates used for remeasurement and related foreign exchange adjustments. In late July 2017, management concluded that this deviation led to the misstatement of foreign exchange gains and losses in certain of our engineering and construction projects and the fair value measurement of certain related ownership interests for the periods presented in the Original Filing. On July 24, 2017, the Audit Committee of the Board of Directors of the Company, after consideration of relevant facts and circumstances and after consultation with management and PricewaterhouseCoopers LLP, our independent registered public accounting firm, concluded that our unaudited interim condensed consolidated U.S. GAAP financial statements as of March 31, 2017 and for the three months ended March 31, 2017 and prior year periods included for comparison purposes in our Quarterly Report on Form 10-Q These errors resulted in the restatement of the Company’s financial statements for the periods presented in the Original Filing. Restatement adjustments were recorded for other income (expense), income from equity affiliates, net interest expense, provision for income taxes and billings in excess of costs as a result of the correction of foreign currency exchange rates used to initially measure these amounts. Restatement adjustments were also recorded for intangible assets, other assets and stockholders’ equity to reflect corrections of exchange rates used in the calculation of the fair value of certain acquired assets. Certain assets acquired were adjusted to reflect the impact of using the correct foreign exchange rates. Adjustments were recorded to cost and expenses to reflect decreased amortization of intangible assets for the period due to the revalued intangible assets. The Condensed Consolidated Statements of Income, the Condensed Consolidated Statements of Comprehensive Income, the Condensed Consolidated Balance Sheets, the Condensed Consolidated Statements of Cash Flows and the Condensed Consolidated States of Changes in Stockholders’ Equity, and Notes 1, 2, 3, 5, 9, 12, 14, 15, 19 and 20 in these financial statements were updated to reflect the restatement. See “Part I—Item 4. Controls and Procedures As restated” herein. The following tables summarize the impact of these adjustments on our previously reported results filed on our Condensed Consolidated Financial Statement line items in our Original Filing: The effects of the restatement on our Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended (In millions, except per share data) March 31, 2017 As Previously Restatement As Restated Costs and expenses: Cost of service revenue $ 2,380.5 $ (2.9 ) $ 2,377.6 Costs and expenses 3,345.1 (2.9 ) 3,342.2 Other income (expense), net 327.4 (263.9 ) 63.5 Income before net interest expense and income taxes 379.7 (261.0 ) 118.7 Net interest expense (81.7 ) (0.4 ) (82.1 ) Income before income taxes 298.0 (261.4 ) 36.6 Provision for income taxes 103.7 (51.9 ) 51.8 Net income (loss) 194.3 (209.5 ) (15.2 ) Net income (loss) attributable to TechnipFMC plc $ 190.8 $ (209.5 ) $ (18.7 ) Earnings (loss) per share attributable to TechnipFMC plc: Basic $ 0.41 $ (0.45 ) $ (0.04 ) Diluted $ 0.41 $ (0.45 ) $ (0.04 ) Weighted average shares outstanding: Diluted 468.9 466.6 Three Months Ended (In millions, except per share data) March 31, 2016 As Previously Restatement As Restated Other income (expense), net $ (33.9 ) $ (8.2 ) $ (42.1 ) Income from equity affiliates (Note 9) 45.6 (20.1 ) 25.5 Income before net interest expense and income taxes 208.1 (28.3 ) 179.8 Income before income taxes 194.8 (28.3 ) 166.5 Provision for income taxes (Note 15) 47.5 (1.6 ) 45.9 Net income 147.3 (26.7 ) 120.6 Net income attributable to TechnipFMC plc $ 147.4 $ (26.7 ) $ 120.7 Earnings per share attributable to TechnipFMC plc (Note 5): Basic $ 1.25 $ (0.23 ) $ 1.02 Diluted $ 1.21 $ (0.24 ) $ 0.97 The effects of the restatement on our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, 2017 (In millions) As Previously Restatement As Restated Net income (loss) $ 194.3 $ (209.5 ) $ (15.2 ) Comprehensive income 261.3 (209.5 ) 51.8 Comprehensive income attributable to TechnipFMC plc $ 257.6 $ (209.5 ) $ 48.1 Three Months Ended March 31, 2016 (In millions) As Previously Restatement As Restated Net income $ 147.3 $ (26.7 ) $ 120.6 Comprehensive income 118.6 (26.7 ) 91.9 Comprehensive income attributable to TechnipFMC plc $ 119.5 $ (26.7 ) $ 92.8 The effects of the restatement on our Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 are as follows: March 31, 2017 (In millions) As Previously Restatement As Restated Intangible assets, net $ 1,580.0 $ (78.8 ) $ 1,501.2 Deferred income taxes 519.4 124.2 643.6 Total assets 29,570.5 45.4 29,615.9 Billings in excess of costs 3,478.7 222.4 3,701.1 Total current liabilities 11,497.0 222.4 11,719.4 Accrued pension and other post-retirement benefits, less current portion 351.2 0.8 352.0 Other liabilities 390.7 (0.8 ) 389.9 Retained earnings 2,992.2 405.2 3,397.4 Accumulated other comprehensive loss (408.2 ) (582.2 ) (990.4 ) Total TechnipFMC plc stockholders’ equity 13,552.8 (177.0 ) 13,375.8 Total liabilities and equity $ 29,570.5 $ 45.4 $ 29,615.9 December 31, 2016 (In millions) As Previously Restatement As Restated Intangible assets, net $ 255.4 $ (81.7 ) $ 173.7 Deferred income taxes 549.3 72.3 621.6 Total assets 18,699.1 (9.4 ) 18,689.7 Billings in excess of costs 3,364.5 (41.5 ) 3,323.0 Total current liabilities 10,930.4 (41.5 ) 10,888.9 Accrued pension and other post-retirement benefits, less current portion 160.0 0.8 160.8 Other liabilities 301.8 (1.2 ) 300.6 Retained earnings 2,801.4 614.7 3,416.1 Accumulated other comprehensive loss (475.2 ) (582.2 ) (1,057.4 ) Total TechnipFMC plc stockholders’ equity 5,091.1 32.5 5,123.6 Total liabilities and equity $ 18,699.1 $ (9.4 ) $ 18,689.7 The effects of the restatement on our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 are as follows: (In millions) Three Months Ended March 31, 2017 As Previously Restatement As Restated Cash provided (required) by operating activities: Net income (loss) $ 194.3 $ (209.5 ) $ (15.2 ) Amortization 70.9 (2.9 ) 68.0 Deferred income tax provision (benefit) 55.9 (51.9 ) 4.0 Other 53.6 0.4 54.0 Advance payments and billings in excess of costs (220.6 ) 263.9 43.3 (In millions) Three Months Ended March 31, 2016 As Previously Restatement As Restated Cash provided (required) by operating activities: Net income $ 147.3 $ (26.7 ) $ 120.6 Deferred income tax provision (benefit) (18.2 ) (1.6 ) (19.8 ) Other (22.2 ) 20.1 (2.1 ) Advance payments and billings in excess of costs (91.6 ) 8.2 (83.4 ) The effects of the restatement on our Condensed Consolidated Statements of Changes in Stockholders’ Equity as of March 31, 2017 and December 31, 2016 are as follows: (In millions) Ordinary Ordinary Treasury and Employee Benefit Trust Capital in Excess of Par Value of Ordinary Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interest Total Stockholders’ Equity Balance as of December 31, 2016 as previously reported $ 114.7 $ (44.5 ) $ 2,694.7 $ 2,801.4 $ (475.2 ) $ (11.7 ) $ 5,079.4 Restatement Adjustments — — — 614.7 (582.2 ) — 32.5 Balance as of December 31, 2016 as restated $ 114.7 $ (44.5 ) $ 2,694.7 $ 3,416.1 $ (1,057.4 ) $ (11.7 ) $ 5,111.9 Balance as of March 31, 2017 as previously reported $ 466.6 $ (5.4 ) $ 10,507.6 $ 2,992.2 $ (408.2 ) $ 6.4 $ 13,559.2 Restatement Adjustments — — — 405.2 (582.2 ) — (177.0 ) Balance as March 31, 2017 as restated $ 466.6 $ (5.4 ) $ 10,507.6 $ 3,397.4 $ (990.4 ) $ 6.4 $ 13,382.2 The effects of the restatement on our reportable segments for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, 2017 (In millions) As Previously Restatement As Restated Income before income taxes: Segment operating profit (loss): Onshore/Offshore $ 139.9 $ 2.9 $ 142.8 Total segment operating profit 175.5 2.9 178.4 Corporate items: Corporate income (expense) 204.2 (263.9 ) (59.7 ) Net interest expense (81.7 ) (0.4 ) (82.1 ) Total corporate items 122.5 (264.3 ) (141.8 ) Income before income taxes $ 298.0 $ (261.4 ) $ 36.6 Three Months Ended March 31, 2016 (In millions) As Previously Restatement As Restated Income before income taxes: Segment operating profit (loss): Onshore/Offshore $ 58.5 $ (20.1 ) $ 38.4 Total segment operating profit 254.9 (20.1 ) 234.8 Corporate items: Corporate income (expense) (46.8 ) (8.2 ) (55.0 ) Total corporate items (60.1 ) (8.2 ) (68.3 ) Income before income taxes $ 194.8 $ (28.3 ) $ 166.5 |
Merger of FMC Technologies and
Merger of FMC Technologies and Technip | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Merger of FMC Technologies and Technip | NOTE 3. MERGER OF FMC TECHNOLOGIES AND TECHNIP Description of the Merger On June 14, 2016, FMC Technologies and Technip entered into a definitive business combination agreement providing for the business combination among FMC Technologies, FMC Technologies SIS Limited, a private limited company incorporated under the laws of England and Wales and a wholly-owned subsidiary of FMC Technologies, and Technip. On August 4, 2016, the legal name of FMC Technologies SIS Limited was changed to TechnipFMC Limited, and on January 11, 2017, was subsequently re-registered On January 16, 2017, the business combination was completed. Pursuant to the terms of the definitive business combination agreement, Technip merged with and into TechnipFMC, with TechnipFMC continuing as the surviving company (the “Technip Merger”), and each ordinary share of Technip (the “Technip Shares”), other than Technip Shares owned by Technip or its wholly-owned subsidiaries, were exchanged for 2.0 ordinary shares of TechnipFMC, subject to the terms of the definitive business combination agreement. Immediately following the Technip Merger, a wholly-owned indirect subsidiary of TechnipFMC (“Merger Sub”) merged with and into FMC Technologies, with FMC Technologies continuing as the surviving company and as a wholly-owned indirect subsidiary of TechnipFMC (the “FMCTI Merger”), and each share of common stock of FMC Technologies (the “FMCTI Shares”), other than FMCTI Shares owned by FMC Technologies, TechnipFMC, Merger Sub or their wholly-owned subsidiaries, were exchanged for 1.0 ordinary share of TechnipFMC, subject to the terms of the definitive business combination agreement. Under the acquisition method of accounting, Technip was identified as the accounting acquirer and acquired a 100% interest in FMC Technologies. The Merger of FMC Technologies and Technip (the “Merger”) is expected to create a larger and more diversified company that is better equipped to respond to economic and industry developments and better positioned to develop and build on its offerings in the subsea, surface, and onshore/offshore markets as compared to the former companies on a standalone basis. More importantly, the Merger will bring about the ability of the combined company to (i) standardize its product and service offerings to customers, (ii) reduce costs to customers, and (iii) provide integrated product offerings to the oil and gas industry with the aim of innovating the markets in which the combined company operates. We incurred $54.7 million in merger transaction and integration costs for the three months ended March 31, 2017. No similar costs were incurred for the comparable prior year quarter. Description of FMC Technologies as Accounting Acquiree FMC Technologies is a global provider of technology solutions for the energy industry. FMC Technologies designs, manufactures and services technologically sophisticated systems and products, including subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems for the energy industry. Subsea systems produced by FMC Technologies are used in the offshore production of crude oil and natural gas and are placed on the seafloor to control the flow of crude oil and natural gas from the reservoir to a host processing facility. Additionally, FMC Technologies provides a full range of drilling, completion and production wellhead systems for both standard and custom-engineered applications. Surface wellhead production systems, or trees, are used to control and regulate the flow of crude oil and natural gas from the well and are used in both onshore and offshore applications. Consideration Transferred The acquisition-date fair value of the consideration transferred consisted of the following: (In millions, except per share data) Total FMC Technologies, Inc. shares subject to exchange as of January 16, 2017 228.9 FMC Technologies, Inc. exchange ratio (1) 0.5 Shares of TechnipFMC issued 114.4 Value per share of Technip as of January 16, 2017 (2) $ 71.40 Total purchase consideration $ 8,170.7 (1) As the calculation is deemed to reflect a share capital increase of the accounting acquirer, the FMC Technologies, Inc. exchange ratio (1 share of TechnipFMC for 1 share of FMC Technologies, Inc. as provided in the business combination agreement) is adjusted by dividing the FMC Technologies exchange ratio by the Technip exchange ratio (2 shares of TechnipFMC for 1 share of Technip as provided in the business combination agreement), i.e., 1 / 2 = 0.5 in order to reflect the number of shares of Technip that FMC Technologies stockholders would have received if Technip was to have issued its own shares. (2) Closing price of Technip’s ordinary shares on Euronext Paris on January 16, 2017 in Euro converted at the Euro to U.S. dollar exchange rate of $1.0594 on January 16, 2017. Assets Acquired and Liabilities Assumed The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date. The Company’s purchase price allocation is subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period. The final purchase price allocation will be based on final appraisals and other analysis of fair values of acquired assets and liabilities. (In millions) Assets: Cash $ 1,479.2 Accounts receivable 1,247.4 Inventory 764.8 Income taxes receivable 139.2 Other current assets 282.2 Property, plant and equipment 1,351.3 Intangible assets 1,390.3 Deferred income taxes 67.0 Other long-term assets 167.3 Total identifiable assets acquired 6,888.7 Liabilities: Short-term and current portion of long-term debt 327.1 Accounts payable, trade 386.0 Advance payments 467.0 Income taxes payable 92.1 Other current liabilities 518.6 Long-term debt, less current portion 1,466.6 Accrued pension and other post-retirement benefits, less current portion 195.5 Deferred income taxes 433.5 Other long-term liabilities 123.6 Total liabilities assumed 4,010.0 Net identifiable assets acquired 2,878.7 Goodwill 5,292.0 Net assets acquired $ 8,170.7 Segment Allocation of Goodwill Goodwill is preliminary due to the draft status of the purchase valuation. The allocation to the reporting segments based on the draft valuation is as follows: (In millions) Allocated Subsea $ 3,078.7 Onshore/Offshore 1,677.0 Surface Technologies 536.3 Total $ 5,292.0 Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company, which are further described above. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. Acquired Identifiable Intangible Assets The identifiable intangible assets acquired include the following: (In millions, except estimated useful lives) Fair Value Estimated Useful Lives Acquired technology $ 240.0 10 Backlog 175.0 2 Customer relationships 285.0 10 Tradenames 635.0 20 Software 55.3 Various Total identifiable intangible assets acquired $ 1,390.3 FMC Technologies’ results of operations have been included in our financial statements for periods subsequent to the consummation of the Merger on January 16, 2017. FMC Technologies contributed revenues and an operating loss of $739.4 million and $80.9 million, respectively, for the period from January 17, 2017 through March 31, 2017. Pro Forma Impact of the Merger (unaudited) The following unaudited supplemental pro forma results present consolidated information as if the Merger had been completed as of January 1, 2016. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the Merger. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the Merger had been consummated as of January 1, 2016, nor are they indicative of future results. For comparative purposes, the weighted average shares outstanding used for the diluted earnings per share calculation for the three months ended March 31, 2017 was also used to calculate the diluted earnings per share for the three months ended March 31, 2016. Three Months Ended March 31, (In millions, except per share data) 2017 Pro Forma 2016 Pro Forma As Restated As Restated Revenue $ 3,500.9 $ 3,611.2 Net income (loss) attributable to TechnipFMC adjusted for dilutive effects $ (103.5 ) $ 46.4 Diluted earnings (loss) per share (0.22 ) 0.10 |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements And Changes In Accounting Principles Abstract | |
New Accounting Standards | NOTE 4. NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards Effective January 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Effective January 1, 2017, we adopted ASU No. 2015-11, Simplifying the Measurement of Inventory Effective January 1, 2017, we adopted ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” No. 2015-14 No. 2014-09 No. 2016-08, In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” In February 2016, the FASB issued ASU No. 2016-02, “Leases.” right-of-use In June 2016, the FASB issued ASU 2016-13, “Financial Instruments Credit Losses.” off-balance In August 2016, the FASB issued ASU No. 2016-15 , “Classification of Certain Cash Receipts and Cash Payments.” In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business.” In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” in-substance In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 5. EARNINGS (LOSS) PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings (loss) per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2017 2016 As Restated As Restated Net income (loss) attributable to TechnipFMC plc $ (18.7 ) $ 120.7 After-tax — 0.4 Net income (loss) attributable to TechnipFMC plc adjusted for dilutive effects (18.7 ) 121.1 Weighted average number of shares outstanding 466.6 118.2 Dilutive effect of stock options — — Dilutive effect of performance shares — 1.0 Dilutive effect of convertible bonds — 5.2 Total shares and dilutive securities 466.6 124.4 Basic earnings (loss) per share attributable to TechnipFMC plc $ (0.04 ) $ 1.02 Diluted earnings (loss) per share attributable to TechnipFMC plc $ (0.04 ) $ 0.97 |
Restructuring and Impairment Ex
Restructuring and Impairment Expense | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Expense | NOTE 6. RESTRUCTURING AND IMPAIRMENT EXPENSE Restructuring and impairment expense was as follows: Three Months Ended March 31, (In millions) 2017 2016 Subsea $ 6.7 $ 0.3 Onshore/Offshore (0.3 ) 35.4 Surface Technologies 1.4 — Corporate and other 1.9 — Total restructuring and impairment expense $ 9.7 $ 35.7 Restructuring Asset impairments— |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Inventories | NOTE 7. INVENTORIES Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 278.4 $ 272.9 Work in process 216.6 36.1 Finished goods 540.2 64.6 1,035.2 373.6 Valuation adjustments (51.7 ) (38.9 ) Inventories, net $ 983.5 $ 334.7 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2017 | |
Other Current Assets [Abstract] | |
Other Current Assets | NOTE 8. OTHER CURRENT ASSETS Other current assets consisted of the following: (In millions) March 31, December 31, Value added tax receivables $ 432.3 $ 319.4 Other tax receivables 183.8 124.9 Prepaid expenses 161.3 106.4 Other 313.0 248.5 Other current assets $ 1,090.4 $ 799.2 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | NOTE 9. EQUITY METHOD INVESTMENTS Our income from equity affiliates included in each of our reporting segments was as follows: Three Months Ended (In millions) 2017 2016 As Restated (1) Subsea $ 9.4 $ 1.9 Onshore/Offshore — 23.6 Surface Technologies — — Income from equity affiliates $ 9.4 $ 25.5 (1) Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | NOTE 10. OTHER CURRENT LIABILITIES Other current liabilities consisted of the following: (In millions) March 31, December 31, Accruals on completed contracts $ 304.8 $ 271.9 Deferred income on contracts 364.6 407.6 Contingencies related to contracts 390.9 370.1 Other taxes payable 236.2 143.5 Redeemable financial liability 88.2 33.7 Other 805.6 598.5 Total other current liabilities $ 2,190.3 $ 1,825.3 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 11. DEBT Long-term debt consisted of the following: (In millions) March 31, December 31, Revolving credit facility $ — $ — Bilateral credit facilities — — Commercial paper 870.3 210.8 Synthetic bonds due 2021 441.5 428.0 Convertible bonds due 2017 — 524.5 2.00% Senior Notes due 2017 300.0 — 3.45% Senior Notes due 2022 500.0 — 5.00% Notes due 2020 215.0 209.7 3.40% Notes due 2022 161.9 158.0 3.15% Notes due 2023 139.5 136.1 3.15% Notes due 2023 134.8 131.4 4.00% Notes due 2027 81.0 79.0 4.00% Notes due 2032 103.8 101.2 3.75% Notes due 2033 104.4 101.8 Bank borrowings 454.3 452.1 Capital leases 28.3 — Other 47.0 20.3 Total long-term debt 3,581.8 2,552.9 Less: current portion (499.0 ) (683.6 ) Long-term debt, less current portion $ 3,082.8 $ 1,869.3 Revolving credit facility The facility agreement provides for the establishment of a multicurrency, revolving credit facility, which includes a $1.5 billion letter of credit subfacility. Subject to certain conditions, the Borrowers may request the aggregate commitments under the facility agreement be increased by an additional $500.0 million. The facility expires in January 2022. Borrowings under the facility agreement bear interest at the following rates, plus an applicable margin, depending on currency: • U.S. dollar-denominated loans bear interest, at the Borrowers’ option, at a base rate or an adjusted rate linked to the London interbank offered rate (“Adjusted LIBOR”); • sterling-denominated loans bear interest at Adjusted LIBOR; and • euro-denominated loans bear interest at the Euro interbank offered rate (“EURIBOR”). Depending on the credit rating of TechnipFMC, the applicable margin for revolving loans varies (i) in the case of Adjusted LIBOR and EURIBOR loans, from 0.820% to 1.300% and (ii) in the case of base rate loans, from 0.000% to 0.300%. The “base rate” is the highest of (a) the prime rate announced by JPMorgan, (b) the greater of the Federal Funds Rate and the Overnight Bank Funding Rate plus 0.5% or (c) one-month The facility agreement contains usual and customary covenants, representations and warranties and events of default for credit facilities of this type, including financial covenants. Bilateral credit facilities • two credit facilities of €80.0 million each expiring in May 2019; • a credit facility of €80.0 million expiring in June 2019; and • a credit facility of €100.0 million expiring in May 2021. Each bilateral credit facility contains usual and customary covenants, representations and warranties and events of default for credit facilities of this type. Commercial paper Synthetic bonds non-dilutive The Synthetic Bonds issued on January 25, 2016 were issued at par. The Synthetic Bonds issued on March 3, 2016 were issued at a premium of 112.43802% resulting from an adjustment over the 3-day A 40.0% conversion premium was applied to the share reference price of €40.7940. The share reference price was computed using the average of the daily volume weighted average price of our ordinary shares on the Euronext Paris market over the 10 consecutive trading days from January 21 to February 3, 2016. The initial conversion price of the bonds was then fixed at €57.1116. The Synthetic Bonds each have a nominal value of €100.0 thousand with a conversion ratio of 3,558.2757 and a conversion price of €28.1035. Any bondholder may, at its sole option, request the conversion in cash of all or part of the bonds it owns, beginning November 15, 2020 to the 38th business day before the maturity date. Convertible bonds At maturity, all outstanding amounts under the 2011-2017 Convertible Bonds were repaid. Senior Notes On March 29, 2017, we settled the offers to exchange and consent solicitations (the “Exchange Offers”) for (i) any and all 2.00% senior notes due October 1, 2017 (the “2017 FMC Notes”) issued by FMC Technologies for up to an aggregate principal amount of $300.0 million of new 2.00% senior notes due October 1, 2017 (the “2017 Senior Notes’) issued by TechnipFMC and cash, and (ii) any and all 3.45% senior notes due October 1, 2022 (the “2022 FMC Notes”) issued by FMC Technologies for up to an aggregate principal amount of $500.0 million in new 3.45% senior notes due October 1, 2022 (the “2022 Senior Notes”) issued by TechnipFMC with registration rights and cash. Pursuant to the Exchange Offers, we issued approximately $215.4 million in aggregate principal amount of 2017 Senior Notes and $459.8 million in aggregate principal amount of 2022 Senior Notes (collectively the “Senior Notes”). Interest on the 2017 Senior Notes is payable on October 1, 2017. Interest on the 2022 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2017. The terms of the Senior Notes are governed by the indenture, dated as of March 29, 2017 between TechnipFMC and U.S. Bank National Association, as trustee (the “Trustee”), as amended and supplemented by the First Supplemental Indenture between TechnipFMC and the Trustee (the “First Supplemental Indenture”) relating to the issuance of the 2017 Notes and the Second Supplemental Indenture between TechnipFMC and the Trustee (the “Second Supplemental Indenture”) relating to the issuance of the 2022 Notes. At any time prior to their maturity in the case of the 2017 Notes, and at any time prior to July 1, 2022, in the case of the 2022 Notes, we may redeem some or all of the Senior Notes at the redemption prices specified in the First Supplemental Indenture and Second Supplemental Indenture, respectively. At any time on or after July 1, 2022, we may redeem the 2022 Notes at the redemption price equal to 100% of the principal amount of the 2022 Notes redeemed. The Senior Notes are our senior unsecured obligations. The Senior Notes will rank equally in right of payment with all of our existing and future unsubordinated debt, and will rank senior in right of payment to all of our future subordinated debt. Private Placement Notes BBB-, In June 2012, we completed the private placement of €325.0 million aggregate principal amount of notes. The notes were issued in three tranches with €150.0 million bearing interest at 3.40% and due June 2022 (the “Tranche A 2022 Notes”), €75.0 million bearing interest of 4.0% and due June 2027 (the “Tranche B 2027 Notes”) and €100.0 million bearing interest of 4.0% and due June 2032 (the “Tranche C 2032 Notes” and, collectively with the “Tranche A 2022 Notes and the “Tranche B 2027 Notes”, the “2012 Private Placement Notes”). Interest on the Tranche A 2022 Notes and the Tranche C 2032 Notes is payable annually in arrears on June 14 of each year beginning June 14, 2013. Interest on the Tranche B 2027 Notes is payable annually in arrears on June 15 of each year, beginning June 15, 2013. Net proceeds of the 2012 Private Placement Notes were used for general corporate purposes. The 2012 Private Placement Notes contain usual and customary covenants and events of default for notes of this type. In the event of a change of control resulting in a downgrade in the rating of the notes below BBB-, In October 2013, we completed the private placement of €355.0 million aggregate principal amount of senior notes. The notes were issued in three tranches with €100.0 million bearing interest at 3.75% and due October 2033 (the “Tranche A 2033 Notes”), €130.0 million bearing interest of 3.15% and due October 2023 (the “Tranche B 2023 Notes) and €125.0 million bearing interest of 3.15% and due October 2023 (the “Tranche C 2023 Notes” and, collectively with the “Tranche A 2033 Notes and the “Tranche B 2023 Notes”, the “2013 Private Placement Notes”). Interest on the Tranche A 2033 Notes is payable annually in arrears on October 7 each year, beginning October 7, 2014. Interest on the Tranche B 2023 Notes is payable annually in arrears on October 16 of each year beginning October 16, 2014. Interest on the Tranche C 2023 Notes is payable annually in arrears on October 18 of each year, beginning October 18, 2014. Net proceeds of the 2013 Private Placement Notes were used for general corporate purposes. The 2013 Private Placement Notes contain contains usual and customary covenants and events of default for notes of this type. In the event of a change of control resulting in a downgrade in the rating of the notes below BBB-, Term loan Foreign committed credit |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | NOTE 12. OTHER LIABILITIES During the three months ended December 31, 2016, we obtained voting control interests in legal onshore/offshore contract entities which own and account for the design, engineering and construction of the Yamal LNG plant. Prior to the amendments of the contractual terms that provided us with voting interest control, we accounted for these entities under the equity method of accounting based on our previously held interests in each of these entities. Since nearly all substantive processes to perform and execute the obligations of the underlying contract are conducted by TechnipFMC and the noncontrolling interest holders, we accounted for these entities as an asset acquisition upon our obtaining control. In the condensed consolidated financial statements included in the Original Filing we recognized a net gain of $72.6 million during 2016. However, in connection with the restatement, it was determined that because the fair value of the voting control interests was computed using incorrect foreign currency rates, it was overstated by $64.9 million. As a result, we now recognize a net gain of $7.7 million during 2016. As of December 31, 2016, total assets, liabilities and equity related to these entities were consolidated onto our balance sheet and our results of operations for the three months ended March 31, 2017 reflect the consolidated results of operations related to these entities. In addition to the recognition of an intangible asset related to the acquired asset in the underlying entities, a mandatorily redeemable financial liability of $174.8 million (as restated) was recognized as of December 31, 2016 to account for the fair value of the non-controlling |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 13. COMMITMENTS AND CONTINGENT LIABILITIES Contingent liabilities associated with guarantees— Guarantees consisted of the following: (In millions) March 31, 2017 Financial guarantees (1) $ 827.7 Performance guarantees (2) 3,952.1 Maximum potential undiscounted payments $ 4,779.8 (1) Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party. These tend to be drawn down only if the Company fails to fulfill its financial obligations. (2) Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity’s failure to perform under a nonfinancial obligating agreement. Events that trigger payment are performance related, such as failure to ship a product or provide a service. Contingent liabilities associated with legal matters— hook-up 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, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | NOTE 14. STOCKHOLDERS’ EQUITY There were no cash dividends declared during the three months ended March 31, 2017 and 2016. The following is a summary of our capital stock activity for the three months ended March 31, 2017 and 2016: (Number of shares in millions) Ordinary Ordinary Shares Held in Employee Benefit Trust Treasury Stock Balance as of December 31, 2015 119.0 — 0.8 Net stock purchased for (sold from) pursuant to liquidity contract — — (0.1 ) Balance as of March 31, 2016 119.0 — 0.7 Balance as of December 31, 2016 119.2 — 0.3 Net capital increases due to the Merger of FMC Technologies and Technip 347.4 — — Treasury stock cancellation due to the Merger of FMC Technologies and Technip — — (0.3 ) Net stock purchased for (sold from) employee benefit trust — 0.1 — Balance as of March 31, 2017 466.6 0.1 — Accumulated other comprehensive loss consisted of the following: (In millions) Foreign Currency Translation Available-For- Sale Securities Hedging Defined Pension and Other Post-retirement Accumulated Other Comprehensive Loss As Restated As Restated As Restated December 31, 2016 $ (849.8 ) $ — $ (126.9 ) $ (80.7 ) $ (1,057.4 ) Other comprehensive income (loss) before reclassifications, net of tax 6.6 0.8 24.7 — 32.1 Reclassification adjustment for net losses (gains) included in net income, net of tax — — 34.4 0.5 34.9 Other comprehensive income (loss), net of tax 6.6 0.8 59.1 0.5 67.0 March 31, 2017 $ (843.2 ) $ 0.8 $ (67.8 ) $ (80.2 ) $ (990.4 ) Reclassifications out of accumulated other comprehensive loss consisted of the following: Three Months Ended (In millions) March 31, March 31, Details about Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statements of Income Gains (losses) on available-for-sale — — Other expense, net Gains (losses) on hedging instruments Foreign exchange contracts: $ (14.6 ) $ — Revenue (0.1 ) — Cost of sales (0.1 ) — Research and development expense (28.4 ) (63.5 ) Other (expense), net (43.2 ) (63.5 ) Income before income taxes (8.8 ) (20.7 ) Provision (benefit) for income taxes $ (34.4 ) $ (42.8 ) Net income Defined pension and other post-retirement Amortization of actuarial gain (loss) $ (0.5 ) $ (0.1 ) (a) Amortization of prior service credit (cost) (0.2 ) (0.1 ) (a) (0.7 ) (0.2 ) Income before income taxes (0.2 ) (0.1 ) Provision (benefit) for income taxes $ (0.5 ) $ (0.1 ) Net income (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15. INCOME TAXES As a result of the Merger described in Note 3, TechnipFMC plc is a public limited company incorporated under the laws of England and Wales. Therefore, our earnings are subject to the United Kingdom statutory rate of 19.3% beginning on the effective date of the Merger. Previously these earnings were subject to the French statutory rate of 34.4%. Our consolidated effective income tax rate information has been presented accordingly. The Merger transaction was generally a non-taxable Our income tax provision (benefit) for the three months ended March 31, 2017 and 2016, reflected effective tax rates of 141.5% (as restated) and 27.6% (as restated), respectively. The year-over-year increase in the effective tax rate was primarily due to a change in the forecasted country mix of earnings and valuation allowances due to additional losses generated for which no tax benefit is expected to be realized. In addition, individual tax items, combined with lower profitability in the current period, had a greater impact on the effective rate in the three months ended March 31, 2017 as a result of lower earnings as compared to the same period in 2016. The effective income tax rate was different from the statutory income tax rate due to the following: Three Months Ended March 31, (In millions) 2017 2016 As Restated As Restated Statutory income tax rate 19.3 % 34.4 % Net difference resulting from: Foreign earnings subject to different tax rates 14.8 % (11.7) % Branch profits tax 8.5 % — % Deemed dividends 9.6 % — % State, local and provincial taxes 23.2 % 2.6 % Return to provision 10.4 % (4.9) % Valuation allowance 51.4 % 12.0 % Other 4.5 % (4.8) % Effective tax rate 141.5 % 27.6 % |
Pension And Other Post-retireme
Pension And Other Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension And Other Post-retirement Benefits | NOTE 16. PENSION AND OTHER POST-RETIREMENT BENEFITS The components of net periodic benefit cost were as follows: Pension Benefits Three Months Ended March 31, 2017 2016 (In millions) U.S. Int’l U.S. Int’l Service cost $ 2.2 $ 4.6 — $ 2.8 Interest cost 5.8 4.3 — 2.6 Expected return on plan assets (10.5 ) (7.7 ) — (2.0 ) Amortization of prior service cost (credit) — 0.2 — 0.1 Amortization of actuarial loss (gain), net — 0.5 — 0.1 Settlement cost — 0.2 — — Net periodic benefit cost $ (2.5 ) $ 2.1 — $ 3.6 During the three months ended March 31, 2017, we contributed $0.6 million to our U.S. pension benefit plans and $12.6 million to our international pension benefit plans. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock-based Compensation | NOTE 17. STOCK-BASED COMPENSATION On January 11, 2017, we adopted the TechnipFMC plc Incentive Award Plan (the “Plan”). The Plan provides certain incentives and awards to officers, employees, non-employee non-employee We recognize compensation expense and the corresponding tax benefits for awards under the Plan. Stock-based compensation expense for nonvested stock units was $11.4 million and $6.0 million for the three months ended March 31, 2017 and 2016, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 18. 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 Net Notional Amount Bought (Sold) (In millions) USD Equivalent Australian dollar 236.6 180.3 Brazilian real 571.9 179.8 British pound 219.4 273.7 Canadian dollar (172.7 ) (129.8 ) Euro 895.0 966.2 Malaysian ringgit 233.2 52.7 Nigerian naira (5,341.3 ) (17.2 ) Norwegian krone 919.9 107.7 Singapore dollar 129.0 92.3 U.S. dollar (1,741.0 ) (1,741.0 ) Foreign exchange rate instruments embedded in purchase and sale contracts Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (54.4 ) (17.1 ) Euro (23.7 ) (25.4 ) Norwegian krone (240.2 ) (27.9 ) U.S. dollar 68.7 68.7 Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. Refer to Note 19 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, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 67.4 $ 154.6 $ 47.2 $ 183.0 Long-term – Derivative financial instruments 17.3 38.6 10.7 47.6 Total derivatives designated as hedging instruments 84.7 193.2 57.9 230.6 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 17.2 25.9 — — Long-term – Derivative financial instruments 3.0 11.7 — — Total derivatives not designated as hedging instruments 20.2 37.6 — — Long-term – Derivative financial instruments – Synthetic Bonds – Call Option Premium 108.4 — 180.1 — Long-term – Derivative financial instruments – Synthetic Bonds – Embedded Derivatives — 108.4 — 180.1 Total derivatives $ 213.3 $ 339.2 $ 238.0 $ 410.7 We recognized a loss of $2.7 million and a gain of $10.6 million for the three months ended March 31, 2017 and 2016, respectively, due to hedge ineffectiveness as it was probable that the original forecasted transaction would not occur. Cash flow derivative hedges of forecasted transactions, net of tax, which qualify for hedge accounting, resulted in an accumulated other comprehensive loss of $67.8 million and $126.9 million at March 31, 2017, and December 31, 2016, respectively. We expect to transfer an approximate $65.4 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 first half of 2020. The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as fair value hedges. Location of Fair Value Hedge Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Three Months Ended March 31, (In millions) 2017 2016 Other income (expense), net $ 20.8 $ (16.2 ) The following tables present the location of gains (losses) on the consolidated statements of other comprehensive income and/or 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) 2017 2016 Foreign exchange contracts $ 34.5 $ (45.5 ) Location of Cash Flow Hedge Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ (14.6 ) $ — Cost of sales (0.1 ) — Research and development expense (0.1 ) — Other (expense), net (28.4 ) (63.5 ) Total $ (43.2 ) $ (63.5 ) Location of Cash Flow Hedge Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ 1.8 $ — Cost of sales (1.2 ) — Other income (expense), net (3.1 ) 9.8 Total $ (2.5 ) $ 9.8 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 Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ 0.3 $ — Cost of sales (0.5 ) — Other income, net 28.0 1.6 Total $ 27.8 $ 1.6 Balance Sheet Offsetting March 31, 2017 December 31, 2016 (In millions) Gross Amount Gross Amounts Net Amount Gross Amount Gross Amounts Net Amount Derivative assets $ 213.3 $ (81.5 ) $ 131.8 $ 238.0 $ (57.9 ) $ 180.1 March 31, 2017 December 31, 2016 (In millions) Gross Amount Gross Amounts Net Amount Gross Amount Gross Amounts Net Amount Derivative liabilities $ 339.2 $ (81.5 ) $ 257.7 $ 410.7 $ (57.9 ) $ 352.8 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 19. FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2017 December 31, 2016 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 As As As As Assets Investments: Nonqualified Plan: Traded securities (1) $ 26.2 $ 26.2 $ — $ — $ — $ — $ — $ — Money market fund 1.7 — 1.7 — — — — — Stable value fund (2) 0.8 — Available-for-sale 29.5 29.5 — — 27.9 27.9 — — Derivative financial instruments: Synthetic bonds - call option premium 108.4 — 108.4 — 180.1 — 180.1 — Foreign exchange contracts 104.9 — 104.9 — 57.9 — 57.9 — Total assets $ 271.5 $ 55.7 $ 215.0 $ — $ 265.9 $ 27.9 $ 238.0 $ — Liabilities Redeemable financial liability $ 242.9 $ — $ — $ 242.9 $ 174.8 $ — $ — $ 174.8 Derivative financial instruments: Synthetic bonds - embedded derivatives 108.4 — 108.4 — 180.1 — 180.1 — Foreign exchange contracts 230.8 — 230.8 — 230.6 — 230.6 — Total liabilities $ 582.1 $ — $ 339.2 $ 242.9 $ 585.5 $ — $ 410.7 $ 174.8 (1) Includes equity securities, fixed income and other investments measured at fair value. (2) 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. Non-qualified quarter-end. Available-for-sale available-for-sale Mandatorily redeemable financial liability— Changes in the fair value of our Level 3 mandatorily redeemable financial liability is presented below. Since the liability was created during the three months ended December 31, 2016, no changes in fair value are presented for the prior period. (In millions) Three Months Ended March 31, 2017 As Restated Balance at beginning of period $ 174.8 Remeasurement adjustment included in earnings 68.1 Settlements — Balance at end of period $ 242.9 Derivative financial instruments— 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 18 for additional disclosure related to derivative financial instruments. Other fair value disclosures: Fair value of debt March 31, 2017 December 31, 2016 (In millions) Carrying (1) Fair (2) Carrying (1) Fair (2) Synthetic bonds due 2021 $ 441.5 $ 633.6 $ 428.0 $ 663.2 2.00% Senior Notes due 2017 300.0 300.6 — — 3.45% Senior Notes due 2022 500.0 506.8 — — 5.00% Notes due 2020 215.0 240.8 209.7 237.7 3.40% Notes due 2022 161.9 178.0 158.0 177.6 3.15% Notes due 2023 (a) 139.5 154.5 136.1 152.0 3.15% Notes due 2023 134.8 146.5 131.4 142.5 4.00% Notes due 2027 81.0 90.9 79.0 89.5 4.00% Notes due 2032 103.8 123.3 101.2 122.1 3.75% Notes due 2033 104.4 108.2 101.8 104.1 (1) Carrying amounts are shown net of unamortized debt discounts and premiums and unamortized debt issuance costs. (2) Fair values are based on Level 1 quoted market rates, except for the 4.00% Notes due 2027 and 3.15% Notes Due 2023 (a) Other fair value disclosures— Credit risk— non-performance non-performance |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segments | NOTE 20. BUSINESS SEGMENTS Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide, which corresponds to the manner in which our chief operating decision maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. Upon completion of the Merger of FMC Technologies and Technip, we reorganized our reporting structure and aligned our segments and the underlying businesses to execute the strategy of TechnipFMC. As a result, we report the results of operations in the following segments: Subsea, Onshore/Offshore and Surface Technologies. Our reportable segments are: • Subsea — • Onshore/Offshore — • Surface Technologies — Total revenue by segment includes intersegment sales, which are made at prices approximating those that the selling entity is able to obtain on external sales. Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments are included in computing segment operating profit. Refer to Note 9 for additional information. The following items have been excluded in computing segment operating profit: corporate staff expense, net interest income (expense) associated with corporate debt facilities, income taxes, and other revenue and other expense, net. Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (In millions) 2017 2016 As Restated As Restated Segment revenue Subsea $ 1,376.7 $ 1,517.2 Onshore/Offshore 1,764.0 888.5 Surface Technologies 248.4 — Other revenue (1.1 ) — Total revenue $ 3,388.0 $ 2,405.7 Income before income taxes: Segment operating profit (loss) : Subsea $ 54.2 $ 196.4 Onshore/Offshore 142.8 38.4 Surface Technologies (18.6 ) — Total segment operating profit 178.4 234.8 Corporate items: Corporate income (expense) (1) (59.7 ) (55.0 ) Net interest expense (82.1 ) (13.3 ) Total corporate items (141.8 ) (68.3 ) Income before income taxes (2) $ 36.6 $ 166.5 (1) Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. (2) Includes amounts attributable to noncontrolling interests. Segment assets were as follows: (In millions) March 31, 2017 December 31, 2016 As Restated As Restated Segment assets: Subsea $ 13,946.1 $ 7,823.1 Onshore/Offshore 4,888.9 3,229.3 Surface Technologies 1,871.5 — Intercompany eliminations (20.7 ) — Total segment assets 20,685.8 11,052.4 Corporate (1) 8,930.1 7,637.3 Total assets $ 29,615.9 $ 18,689.7 (1) 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 21. SUBSEQUENT EVENTS On April 26, 2017, we announced that our Board of Directors approved a capital allocation plan that includes the authorization of a share repurchase program of up to $500.0 million of our ordinary shares to be completed by the end of 2018 and planning for a quarterly dividend following third quarter 2017 results. The implementation of this capital allocation program is subject to, among other things, completion of a U.K.-court approved reduction of capital and the availability of sufficient distributable reserves, which is expected to be completed in the third quarter of 2017. |
Basis Of Presentation and Sig30
Basis Of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC”) 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. 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 consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments as well as adjustments to our financial position pursuant to a business combination, necessary for a fair statement 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, 2017. In this Quarterly Report on Form 10-Q/A, Since TechnipFMC is the successor company to Technip, we are presenting the results of Technip’s operations for the three months ended March 31, 2016 and as of December 31, 2016. Refer to Note 3 for further information related to the merger of FMC Technologies and Technip. |
Principles of consolidation | Principles of consolidation |
Use of estimates | Use of estimates |
Investments in the common stock of unconsolidated affiliates | Investments in the common stock of unconsolidated affiliates Investments in unconsolidated affiliates are assessed for impairment whenever events or changes in facts and circumstances indicate the carrying value of the investments may not be fully recoverable. When such a condition is subjectively determined to be other than temporary, the carrying value of the investment is written down to fair value. Management’s assessment as to whether any decline in value is other than temporary is based on our ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. Management generally considers our investments in equity method investees to be strategic, long-term investments and completes its assessments for impairment with a long-term viewpoint. Investments in which ownership is less than 20% or that do not represent significant investments are reported in other assets on the consolidated balance sheets. Where no active market exists and where no other valuation method can be used, these financial assets are maintained at historical cost, less any accumulated impairment losses. |
Business combinations | Business combinations— |
Revenue recognition | Revenue recognition For certain construction-type manufacturing and assembly projects that involve significant design and engineering efforts to satisfy detailed customer specifications, revenue is recognized using the percentage of completion method of accounting. Under the percentage of completion method, revenue is recognized as work progresses on each contract. We apply the ratio of costs incurred to date to total estimated contract costs at completion or on physical progress defined for the main deliverables under the contracts. If it is not possible to form a reliable estimate of progress toward completion, no revenue or costs are recognized until the project is complete or substantially complete. Any expected losses on construction-type contracts in progress are charged to earnings, in total, in the period the losses are identified. Modifications to construction-type contracts, referred to as “change orders,” effectively change the provisions of the original contract, and may, for example, alter the specifications or design, method or manner of performance, equipment, materials, sites and/or period for completion of the work. If a change order represents a firm price commitment from a customer, we account for the revised estimate as if it had been included in the original estimate, effectively recognizing the pro rata impact of the new estimate on our calculation of progress toward completion in the period in which the firm commitment is received. If a change order is unpriced: (1) we include the costs of contract performance in our calculation of progress toward completion in the period in which the costs are incurred or become probable; and (2) when it is determined that the revenue is probable of recovery, we include the change order revenue, limited to the costs incurred to date related to the change order, in our calculation of progress toward completion. Unpriced change orders included in revenue were immaterial to our consolidated revenue for all periods presented. Margin is not recorded on unpriced change orders unless realization is assured beyond a reasonable doubt. The assessment of realization may be based upon our previous experience with the customer or based upon our receipt of a firm price commitment from the customer. Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Revenue in excess of progress billings are reported in costs and estimated earnings in excess of billings on uncompleted contracts in our condensed consolidated balance sheets. Progress billings and cash collections in excess of revenue recognized on a contract are classified as billings in excess of costs and estimated earnings on uncompleted contracts and advance payments, respectively, in our condensed consolidated balance sheets. Revenue generated from the installation portion of construction-type contracts is included in service and product revenue in our condensed consolidated statements of income. |
Cash equivalents | Cash equivalents |
Trade receivables, net of allowances | Trade receivables, net of allowances |
Inventories | Inventories last-in, first-out first-in, first-out |
Impairment of property, plant and equipment | Impairment of property, plant and equipment Long-lived assets classified as held for sale are reported at the lower of carrying value or fair value less cost to sell. |
Goodwill | Goodwill two-step |
Debt instruments | Debt instruments— |
Fair value measurements | Fair value measurements • Level 1 • Level 2 • Level 3 |
Income taxes | Income taxes U.S. income taxes are not provided on our equity in undistributed earnings of foreign subsidiaries or affiliates to the extent we have determined that the earnings are indefinitely reinvested. U.S. income taxes are provided on such earnings in the period in which we can no longer support that such earnings are indefinitely reinvested. Tax benefits related to uncertain tax positions are recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We classify interest expense and penalties recognized on underpayments of income taxes as income tax expense. |
Stock-based employee compensation | Stock-based employee compensation |
Ordinary shares held in employee benefit trust | Ordinary shares held in employee benefit trust Non-Qualified |
Treasury stock | Treasury shares |
Earnings per ordinary share (EPS) | Earnings per ordinary share (“EPS”) Convertible bonds that could be converted into or be exchangeable for new or existing shares would additionally result in a dilution of earnings per share. The common shares assumed to be converted as of the issuance date are included to compute diluted EPS under the if-converted after-tax |
Foreign currency | Foreign currency non-highly non-current For certain committed and anticipated future cash flows and recognized assets and liabilities which are denominated in a foreign currency, we may choose to manage our risk against changes in the exchange rates, when compared against the functional currency, through the economic netting of exposures instead of derivative instruments. Cash outflows or liabilities in a foreign currency are matched against cash inflows or assets in the same currency, such that movements in exchanges rates will result in offsetting gains or losses. Due to the inherent unpredictability of the timing of cash flows, gains and losses in the current period may be economically offset by gains and losses in a future period. All gains and losses are recorded in our consolidated statements of income in the period in which they are incurred. Gains and losses from the remeasurement of assets and liabilities are recognized in other income (expense), net. |
Derivative instruments | Derivative instruments— non-current Hedge accounting is only applied when the derivative is deemed to be highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive income (loss) until the underlying transactions are recognized in earnings. At such time, related deferred hedging gains or losses are recorded in earnings on the same line as the hedged item. Effectiveness is assessed at the inception of the hedge and on a quarterly basis. Effectiveness of forward contract cash flow hedges are assessed based solely on changes in fair value attributable to the change in the spot rate. The change in the fair value of the contract related to the change in forward rates is excluded from the assessment of hedge effectiveness. Changes in this excluded component of the derivative instrument, along with any ineffectiveness identified, are recorded in earnings as incurred. We document our risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. We also use forward contracts to hedge foreign currency assets and liabilities, for which we do not apply hedge accounting. The changes in fair value of these contracts are recognized in other income (expense), net on our condensed consolidated statements of income, as they occur and offset gains or losses on the remeasurement of the related asset or liability. |
Recently adopted and issued accounting standards | Recently Adopted Accounting Standards Effective January 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Effective January 1, 2017, we adopted ASU No. 2015-11, Simplifying the Measurement of Inventory Effective January 1, 2017, we adopted ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” No. 2015-14 No. 2014-09 No. 2016-08, In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” In February 2016, the FASB issued ASU No. 2016-02, “Leases.” right-of-use In June 2016, the FASB issued ASU 2016-13, “Financial Instruments Credit Losses.” off-balance In August 2016, the FASB issued ASU No. 2016-15 , “Classification of Certain Cash Receipts and Cash Payments.” In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business.” In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” in-substance In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” |
Restatement of Financial Stat31
Restatement of Financial Statement (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Effects of Restatement of Condensed Consolidated Financial Statement | The effects of the restatement on our Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended (In millions, except per share data) March 31, 2017 As Previously Restatement As Restated Costs and expenses: Cost of service revenue $ 2,380.5 $ (2.9 ) $ 2,377.6 Costs and expenses 3,345.1 (2.9 ) 3,342.2 Other income (expense), net 327.4 (263.9 ) 63.5 Income before net interest expense and income taxes 379.7 (261.0 ) 118.7 Net interest expense (81.7 ) (0.4 ) (82.1 ) Income before income taxes 298.0 (261.4 ) 36.6 Provision for income taxes 103.7 (51.9 ) 51.8 Net income (loss) 194.3 (209.5 ) (15.2 ) Net income (loss) attributable to TechnipFMC plc $ 190.8 $ (209.5 ) $ (18.7 ) Earnings (loss) per share attributable to TechnipFMC plc: Basic $ 0.41 $ (0.45 ) $ (0.04 ) Diluted $ 0.41 $ (0.45 ) $ (0.04 ) Weighted average shares outstanding: Diluted 468.9 466.6 Three Months Ended (In millions, except per share data) March 31, 2016 As Previously Restatement As Restated Other income (expense), net $ (33.9 ) $ (8.2 ) $ (42.1 ) Income from equity affiliates (Note 9) 45.6 (20.1 ) 25.5 Income before net interest expense and income taxes 208.1 (28.3 ) 179.8 Income before income taxes 194.8 (28.3 ) 166.5 Provision for income taxes (Note 15) 47.5 (1.6 ) 45.9 Net income 147.3 (26.7 ) 120.6 Net income attributable to TechnipFMC plc $ 147.4 $ (26.7 ) $ 120.7 Earnings per share attributable to TechnipFMC plc (Note 5): Basic $ 1.25 $ (0.23 ) $ 1.02 Diluted $ 1.21 $ (0.24 ) $ 0.97 The effects of the restatement on our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, 2017 (In millions) As Previously Restatement As Restated Net income (loss) $ 194.3 $ (209.5 ) $ (15.2 ) Comprehensive income 261.3 (209.5 ) 51.8 Comprehensive income attributable to TechnipFMC plc $ 257.6 $ (209.5 ) $ 48.1 Three Months Ended March 31, 2016 (In millions) As Previously Restatement As Restated Net income $ 147.3 $ (26.7 ) $ 120.6 Comprehensive income 118.6 (26.7 ) 91.9 Comprehensive income attributable to TechnipFMC plc $ 119.5 $ (26.7 ) $ 92.8 The effects of the restatement on our Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 are as follows: March 31, 2017 (In millions) As Previously Restatement As Restated Intangible assets, net $ 1,580.0 $ (78.8 ) $ 1,501.2 Deferred income taxes 519.4 124.2 643.6 Total assets 29,570.5 45.4 29,615.9 Billings in excess of costs 3,478.7 222.4 3,701.1 Total current liabilities 11,497.0 222.4 11,719.4 Accrued pension and other post-retirement benefits, less current portion 351.2 0.8 352.0 Other liabilities 390.7 (0.8 ) 389.9 Retained earnings 2,992.2 405.2 3,397.4 Accumulated other comprehensive loss (408.2 ) (582.2 ) (990.4 ) Total TechnipFMC plc stockholders’ equity 13,552.8 (177.0 ) 13,375.8 Total liabilities and equity $ 29,570.5 $ 45.4 $ 29,615.9 December 31, 2016 (In millions) As Previously Restatement As Restated Intangible assets, net $ 255.4 $ (81.7 ) $ 173.7 Deferred income taxes 549.3 72.3 621.6 Total assets 18,699.1 (9.4 ) 18,689.7 Billings in excess of costs 3,364.5 (41.5 ) 3,323.0 Total current liabilities 10,930.4 (41.5 ) 10,888.9 Accrued pension and other post-retirement benefits, less current portion 160.0 0.8 160.8 Other liabilities 301.8 (1.2 ) 300.6 Retained earnings 2,801.4 614.7 3,416.1 Accumulated other comprehensive loss (475.2 ) (582.2 ) (1,057.4 ) Total TechnipFMC plc stockholders’ equity 5,091.1 32.5 5,123.6 Total liabilities and equity $ 18,699.1 $ (9.4 ) $ 18,689.7 The effects of the restatement on our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 are as follows: (In millions) Three Months Ended March 31, 2017 As Previously Restatement As Restated Cash provided (required) by operating activities: Net income (loss) $ 194.3 $ (209.5 ) $ (15.2 ) Amortization 70.9 (2.9 ) 68.0 Deferred income tax provision (benefit) 55.9 (51.9 ) 4.0 Other 53.6 0.4 54.0 Advance payments and billings in excess of costs (220.6 ) 263.9 43.3 (In millions) Three Months Ended March 31, 2016 As Previously Restatement As Restated Cash provided (required) by operating activities: Net income $ 147.3 $ (26.7 ) $ 120.6 Deferred income tax provision (benefit) (18.2 ) (1.6 ) (19.8 ) Other (22.2 ) 20.1 (2.1 ) Advance payments and billings in excess of costs (91.6 ) 8.2 (83.4 ) The effects of the restatement on our Condensed Consolidated Statements of Changes in Stockholders’ Equity as of March 31, 2017 and December 31, 2016 are as follows: (In millions) Ordinary Ordinary Treasury and Employee Benefit Trust Capital in Excess of Par Value of Ordinary Retained Earnings Accumulated Other Comprehensive Income (Loss) Non- controlling Interest Total Stockholders’ Equity Balance as of December 31, 2016 as previously reported $ 114.7 $ (44.5 ) $ 2,694.7 $ 2,801.4 $ (475.2 ) $ (11.7 ) $ 5,079.4 Restatement Adjustments — — — 614.7 (582.2 ) — 32.5 Balance as of December 31, 2016 as restated $ 114.7 $ (44.5 ) $ 2,694.7 $ 3,416.1 $ (1,057.4 ) $ (11.7 ) $ 5,111.9 Balance as of March 31, 2017 as previously reported $ 466.6 $ (5.4 ) $ 10,507.6 $ 2,992.2 $ (408.2 ) $ 6.4 $ 13,559.2 Restatement Adjustments — — — 405.2 (582.2 ) — (177.0 ) Balance as March 31, 2017 as restated $ 466.6 $ (5.4 ) $ 10,507.6 $ 3,397.4 $ (990.4 ) $ 6.4 $ 13,382.2 The effects of the restatement on our reportable segments for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, 2017 (In millions) As Previously Restatement As Restated Income before income taxes: Segment operating profit (loss): Onshore/Offshore $ 139.9 $ 2.9 $ 142.8 Total segment operating profit 175.5 2.9 178.4 Corporate items: Corporate income (expense) 204.2 (263.9 ) (59.7 ) Net interest expense (81.7 ) (0.4 ) (82.1 ) Total corporate items 122.5 (264.3 ) (141.8 ) Income before income taxes $ 298.0 $ (261.4 ) $ 36.6 Three Months Ended March 31, 2016 (In millions) As Previously Restatement As Restated Income before income taxes: Segment operating profit (loss): Onshore/Offshore $ 58.5 $ (20.1 ) $ 38.4 Total segment operating profit 254.9 (20.1 ) 234.8 Corporate items: Corporate income (expense) (46.8 ) (8.2 ) (55.0 ) Total corporate items (60.1 ) (8.2 ) (68.3 ) Income before income taxes $ 194.8 $ (28.3 ) $ 166.5 |
Merger of FMC Technologies an32
Merger of FMC Technologies and Technip (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable | The acquisition-date fair value of the consideration transferred consisted of the following: (In millions, except per share data) Total FMC Technologies, Inc. shares subject to exchange as of January 16, 2017 228.9 FMC Technologies, Inc. exchange ratio (1) 0.5 Shares of TechnipFMC issued 114.4 Value per share of Technip as of January 16, 2017 (2) $ 71.40 Total purchase consideration $ 8,170.7 (1) As the calculation is deemed to reflect a share capital increase of the accounting acquirer, the FMC Technologies, Inc. exchange ratio (1 share of TechnipFMC for 1 share of FMC Technologies, Inc. as provided in the business combination agreement) is adjusted by dividing the FMC Technologies exchange ratio by the Technip exchange ratio (2 shares of TechnipFMC for 1 share of Technip as provided in the business combination agreement), i.e., 1 / 2 = 0.5 in order to reflect the number of shares of Technip that FMC Technologies stockholders would have received if Technip was to have issued its own shares. (2) Closing price of Technip’s ordinary shares on Euronext Paris on January 16, 2017 in Euro converted at the Euro to U.S. dollar exchange rate of $1.0594 on January 16, 2017. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date. The Company’s purchase price allocation is subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period. The final purchase price allocation will be based on final appraisals and other analysis of fair values of acquired assets and liabilities. (In millions) Assets: Cash $ 1,479.2 Accounts receivable 1,247.4 Inventory 764.8 Income taxes receivable 139.2 Other current assets 282.2 Property, plant and equipment 1,351.3 Intangible assets 1,390.3 Deferred income taxes 67.0 Other long-term assets 167.3 Total identifiable assets acquired 6,888.7 Liabilities: Short-term and current portion of long-term debt 327.1 Accounts payable, trade 386.0 Advance payments 467.0 Income taxes payable 92.1 Other current liabilities 518.6 Long-term debt, less current portion 1,466.6 Accrued pension and other post-retirement benefits, less current portion 195.5 Deferred income taxes 433.5 Other long-term liabilities 123.6 Total liabilities assumed 4,010.0 Net identifiable assets acquired 2,878.7 Goodwill 5,292.0 Net assets acquired $ 8,170.7 |
Business Combination, Segment Allocation | (In millions) Allocated Subsea $ 3,078.7 Onshore/Offshore 1,677.0 Surface Technologies 536.3 Total $ 5,292.0 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The identifiable intangible assets acquired include the following: (In millions, except estimated useful lives) Fair Value Estimated Useful Lives Acquired technology $ 240.0 10 Backlog 175.0 2 Customer relationships 285.0 10 Tradenames 635.0 20 Software 55.3 Various Total identifiable intangible assets acquired $ 1,390.3 |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma results present consolidated information as if the Merger had been completed as of January 1, 2016. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the Merger. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the Merger had been consummated as of January 1, 2016, nor are they indicative of future results. For comparative purposes, the weighted average shares outstanding used for the diluted earnings per share calculation for the three months ended March 31, 2017 was also used to calculate the diluted earnings per share for the three months ended March 31, 2016. Three Months Ended March 31, (In millions, except per share data) 2017 Pro Forma 2016 Pro Forma As Restated As Restated Revenue $ 3,500.9 $ 3,611.2 Net income (loss) attributable to TechnipFMC adjusted for dilutive effects $ (103.5 ) $ 46.4 Diluted earnings (loss) per share (0.22 ) 0.10 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Basic And Diluted EPS | A reconciliation of the number of shares used for the basic and diluted earnings (loss) per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2017 2016 As Restated As Restated Net income (loss) attributable to TechnipFMC plc $ (18.7 ) $ 120.7 After-tax — 0.4 Net income (loss) attributable to TechnipFMC plc adjusted for dilutive effects (18.7 ) 121.1 Weighted average number of shares outstanding 466.6 118.2 Dilutive effect of stock options — — Dilutive effect of performance shares — 1.0 Dilutive effect of convertible bonds — 5.2 Total shares and dilutive securities 466.6 124.4 Basic earnings (loss) per share attributable to TechnipFMC plc $ (0.04 ) $ 1.02 Diluted earnings (loss) per share attributable to TechnipFMC plc $ (0.04 ) $ 0.97 |
Restructuring and Impairment 34
Restructuring and Impairment Expense (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Expense | Restructuring and impairment expense was as follows: Three Months Ended March 31, (In millions) 2017 2016 Subsea $ 6.7 $ 0.3 Onshore/Offshore (0.3 ) 35.4 Surface Technologies 1.4 — Corporate and other 1.9 — Total restructuring and impairment expense $ 9.7 $ 35.7 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Components Of Inventories | Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 278.4 $ 272.9 Work in process 216.6 36.1 Finished goods 540.2 64.6 1,035.2 373.6 Valuation adjustments (51.7 ) (38.9 ) Inventories, net $ 983.5 $ 334.7 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: (In millions) March 31, December 31, Value added tax receivables $ 432.3 $ 319.4 Other tax receivables 183.8 124.9 Prepaid expenses 161.3 106.4 Other 313.0 248.5 Other current assets $ 1,090.4 $ 799.2 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | ur income from equity affiliates included in each of our reporting segments was as follows: Three Months Ended (In millions) 2017 2016 As Restated (1) Subsea $ 9.4 $ 1.9 Onshore/Offshore — 23.6 Surface Technologies — — Income from equity affiliates $ 9.4 $ 25.5 (1) Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following: (In millions) March 31, December 31, Accruals on completed contracts $ 304.8 $ 271.9 Deferred income on contracts 364.6 407.6 Contingencies related to contracts 390.9 370.1 Other taxes payable 236.2 143.5 Redeemable financial liability 88.2 33.7 Other 805.6 598.5 Total other current liabilities $ 2,190.3 $ 1,825.3 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term debt | Long-term debt consisted of the following: (In millions) March 31, December 31, Revolving credit facility $ — $ — Bilateral credit facilities — — Commercial paper 870.3 210.8 Synthetic bonds due 2021 441.5 428.0 Convertible bonds due 2017 — 524.5 2.00% Senior Notes due 2017 300.0 — 3.45% Senior Notes due 2022 500.0 — 5.00% Notes due 2020 215.0 209.7 3.40% Notes due 2022 161.9 158.0 3.15% Notes due 2023 139.5 136.1 3.15% Notes due 2023 134.8 131.4 4.00% Notes due 2027 81.0 79.0 4.00% Notes due 2032 103.8 101.2 3.75% Notes due 2033 104.4 101.8 Bank borrowings 454.3 452.1 Capital leases 28.3 — Other 47.0 20.3 Total long-term debt 3,581.8 2,552.9 Less: current portion (499.0 ) (683.6 ) Long-term debt, less current portion $ 3,082.8 $ 1,869.3 |
Commitments and Contingent Li40
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | Guarantees consisted of the following: (In millions) March 31, 2017 Financial guarantees (1) $ 827.7 Performance guarantees (2) 3,952.1 Maximum potential undiscounted payments $ 4,779.8 (1) Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party. These tend to be drawn down only if the Company fails to fulfill its financial obligations. (2) Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity’s failure to perform under a nonfinancial obligating agreement. Events that trigger payment are performance related, such as failure to ship a product or provide a service. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Capital stock activity | The following is a summary of our capital stock activity for the three months ended March 31, 2017 and 2016: (Number of shares in millions) Ordinary Ordinary Shares Held in Employee Benefit Trust Treasury Stock Balance as of December 31, 2015 119.0 — 0.8 Net stock purchased for (sold from) pursuant to liquidity contract — — (0.1 ) Balance as of March 31, 2016 119.0 — 0.7 Balance as of December 31, 2016 119.2 — 0.3 Net capital increases due to the Merger of FMC Technologies and Technip 347.4 — — Treasury stock cancellation due to the Merger of FMC Technologies and Technip — — (0.3 ) Net stock purchased for (sold from) employee benefit trust — 0.1 — Balance as of March 31, 2017 466.6 0.1 — |
Accumulated other comprehensive loss | Accumulated other comprehensive loss consisted of the following: (In millions) Foreign Currency Translation Available-For- Sale Securities Hedging Defined Pension and Other Post-retirement Accumulated Other Comprehensive Loss As Restated As Restated As Restated December 31, 2016 $ (849.8 ) $ — $ (126.9 ) $ (80.7 ) $ (1,057.4 ) Other comprehensive income (loss) before reclassifications, net of tax 6.6 0.8 24.7 — 32.1 Reclassification adjustment for net losses (gains) included in net income, net of tax — — 34.4 0.5 34.9 Other comprehensive income (loss), net of tax 6.6 0.8 59.1 0.5 67.0 March 31, 2017 $ (843.2 ) $ 0.8 $ (67.8 ) $ (80.2 ) $ (990.4 ) |
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, March 31, Details about Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statements of Income Gains (losses) on available-for-sale — — Other expense, net Gains (losses) on hedging instruments Foreign exchange contracts: $ (14.6 ) $ — Revenue (0.1 ) — Cost of sales (0.1 ) — Research and development expense (28.4 ) (63.5 ) Other (expense), net (43.2 ) (63.5 ) Income before income taxes (8.8 ) (20.7 ) Provision (benefit) for income taxes $ (34.4 ) $ (42.8 ) Net income Defined pension and other post-retirement Amortization of actuarial gain (loss) $ (0.5 ) $ (0.1 ) (a) Amortization of prior service credit (cost) (0.2 ) (0.1 ) (a) (0.7 ) (0.2 ) Income before income taxes (0.2 ) (0.1 ) Provision (benefit) for income taxes $ (0.5 ) $ (0.1 ) Net income (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate was different from the statutory income tax rate due to the following: Three Months Ended March 31, (In millions) 2017 2016 As Restated As Restated Statutory income tax rate 19.3 % 34.4 % Net difference resulting from: Foreign earnings subject to different tax rates 14.8 % (11.7) % Branch profits tax 8.5 % — % Deemed dividends 9.6 % — % State, local and provincial taxes 23.2 % 2.6 % Return to provision 10.4 % (4.9) % Valuation allowance 51.4 % 12.0 % Other 4.5 % (4.8) % Effective tax rate 141.5 % 27.6 % |
Pension And Other Post-retire43
Pension And Other Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 (In millions) U.S. Int’l U.S. Int’l Service cost $ 2.2 $ 4.6 — $ 2.8 Interest cost 5.8 4.3 — 2.6 Expected return on plan assets (10.5 ) (7.7 ) — (2.0 ) Amortization of prior service cost (credit) — 0.2 — 0.1 Amortization of actuarial loss (gain), net — 0.5 — 0.1 Settlement cost — 0.2 — — Net periodic benefit cost $ (2.5 ) $ 2.1 — $ 3.6 |
Derivative Financial Instrume44
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Foreign exchange rate forward contracts Net Notional Amount Bought (Sold) (In millions) USD Equivalent Australian dollar 236.6 180.3 Brazilian real 571.9 179.8 British pound 219.4 273.7 Canadian dollar (172.7 ) (129.8 ) Euro 895.0 966.2 Malaysian ringgit 233.2 52.7 Nigerian naira (5,341.3 ) (17.2 ) Norwegian krone 919.9 107.7 Singapore dollar 129.0 92.3 U.S. dollar (1,741.0 ) (1,741.0 ) Foreign exchange rate instruments embedded in purchase and sale contracts Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real (54.4 ) (17.1 ) Euro (23.7 ) (25.4 ) Norwegian krone (240.2 ) (27.9 ) U.S. dollar 68.7 68.7 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets. March 31, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments $ 67.4 $ 154.6 $ 47.2 $ 183.0 Long-term – Derivative financial instruments 17.3 38.6 10.7 47.6 Total derivatives designated as hedging instruments 84.7 193.2 57.9 230.6 Derivatives not designated as hedging instruments: Foreign exchange contracts: Current – Derivative financial instruments 17.2 25.9 — — Long-term – Derivative financial instruments 3.0 11.7 — — Total derivatives not designated as hedging instruments 20.2 37.6 — — Long-term – Derivative financial instruments – Synthetic Bonds – Call Option Premium 108.4 — 180.1 — Long-term – Derivative financial instruments – Synthetic Bonds – Embedded Derivatives — 108.4 — 180.1 Total derivatives $ 213.3 $ 339.2 $ 238.0 $ 410.7 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as fair value hedges. Location of Fair Value Hedge Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Three Months Ended March 31, (In millions) 2017 2016 Other income (expense), net $ 20.8 $ (16.2 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following tables present the location of gains (losses) on the consolidated statements of other comprehensive income and/or 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) 2017 2016 Foreign exchange contracts $ 34.5 $ (45.5 ) |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Gain (Loss) Recognized in OCI (Effective Portion) Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts $ 34.5 $ (45.5 ) Location of Cash Flow Hedge Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ (14.6 ) $ — Cost of sales (0.1 ) — Research and development expense (0.1 ) — Other (expense), net (28.4 ) (63.5 ) Total $ (43.2 ) $ (63.5 ) Location of Cash Flow Hedge Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ 1.8 $ — Cost of sales (1.2 ) — Other income (expense), net (3.1 ) 9.8 Total $ (2.5 ) $ 9.8 |
Schedule of Other Derivatives Not Designated as Hedging Instruments | 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 Three Months Ended March 31, (In millions) 2017 2016 Foreign exchange contracts: Revenue $ 0.3 $ — Cost of sales (0.5 ) — Other income, net 28.0 1.6 Total $ 27.8 $ 1.6 |
Offsetting Assets | The following tables present both gross information and net information of recognized derivative instruments: March 31, 2017 December 31, 2016 (In millions) Gross Amount Gross Amounts Net Amount Gross Amount Gross Amounts Net Amount Derivative assets $ 213.3 $ (81.5 ) $ 131.8 $ 238.0 $ (57.9 ) $ 180.1 |
Offsetting Liabilities | March 31, 2017 December 31, 2016 (In millions) Gross Amount Gross Amounts Net Amount Gross Amount Gross Amounts Net Amount Derivative liabilities $ 339.2 $ (81.5 ) $ 257.7 $ 410.7 $ (57.9 ) $ 352.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 December 31, 2016 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 As As As As Assets Investments: Nonqualified Plan: Traded securities (1) $ 26.2 $ 26.2 $ — $ — $ — $ — $ — $ — Money market fund 1.7 — 1.7 — — — — — Stable value fund (2) 0.8 — Available-for-sale 29.5 29.5 — — 27.9 27.9 — — Derivative financial instruments: Synthetic bonds-call option premium 108.4 — 108.4 — 180.1 — 180.1 — Foreign exchange contracts 104.9 — 104.9 — 57.9 — 57.9 — Total assets $ 271.5 $ 55.7 $ 215.0 $ — $ 265.9 $ 27.9 $ 238.0 $ — Liabilities Redeemable financial liability $ 242.9 $ — $ — $ 242.9 $ 174.8 $ — $ — $ 174.8 Derivative financial instruments: Synthetic bonds-embedded derivatives 108.4 — 108.4 — 180.1 — 180.1 — Foreign exchange contracts 230.8 — 230.8 — 230.6 — 230.6 — Total liabilities $ 582.1 $ — $ 339.2 $ 242.9 $ 585.5 $ — $ 410.7 $ 174.8 (1) Includes equity securities, fixed income and other investments measured at fair value. (2) 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. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the fair value of our Level 3 mandatorily redeemable financial liability is presented below. Since the liability was created during the three months ended December 31, 2016, no changes in fair value are presented for the prior period. (In millions) Three Months Ended March 31, 2017 As Restated Balance at beginning of period $ 174.8 Remeasurement adjustment included in earnings 68.1 Settlements — Balance at end of period $ 242.9 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Fair value of debt March 31, 2017 December 31, 2016 (In millions) Carrying (1) Fair (2) Carrying (1) Fair (2) Synthetic bonds due 2021 $ 441.5 $ 633.6 $ 428.0 $ 663.2 2.00% Senior Notes due 2017 300.0 300.6 — — 3.45% Senior Notes due 2022 500.0 506.8 — — 5.00% Notes due 2020 215.0 240.8 209.7 237.7 3.40% Notes due 2022 161.9 178.0 158.0 177.6 3.15% Notes due 2023 (a) 139.5 154.5 136.1 152.0 3.15% Notes due 2023 134.8 146.5 131.4 142.5 4.00% Notes due 2027 81.0 90.9 79.0 89.5 4.00% Notes due 2032 103.8 123.3 101.2 122.1 3.75% Notes due 2033 104.4 108.2 101.8 104.1 (1) Carrying amounts are shown net of unamortized debt discounts and premiums and unamortized debt issuance costs. (2) Fair values are based on Level 1 quoted market rates, except for the 4.00% Notes due 2027 and 3.15% Notes Due 2023 (a) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) 2017 2016 As Restated As Restated Segment revenue Subsea $ 1,376.7 $ 1,517.2 Onshore/Offshore 1,764.0 888.5 Surface Technologies 248.4 — Other revenue (1.1 ) — Total revenue $ 3,388.0 $ 2,405.7 Income before income taxes: Segment operating profit (loss) : Subsea $ 54.2 $ 196.4 Onshore/Offshore 142.8 38.4 Surface Technologies (18.6 ) — Total segment operating profit 178.4 234.8 Corporate items: Corporate income (expense) (1) (59.7 ) (55.0 ) Net interest expense (82.1 ) (13.3 ) Total corporate items (141.8 ) (68.3 ) Income before income taxes (2) $ 36.6 $ 166.5 (1) Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. (2) Includes amounts attributable to noncontrolling interests. |
Segment Assets | Segment assets were as follows: (In millions) March 31, 2017 December 31, 2016 As Restated As Restated Segment assets: Subsea $ 13,946.1 $ 7,823.1 Onshore/Offshore 4,888.9 3,229.3 Surface Technologies 1,871.5 — Intercompany eliminations (20.7 ) — Total segment assets 20,685.8 11,052.4 Corporate (1) 8,930.1 7,637.3 Total assets $ 29,615.9 $ 18,689.7 (1) 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. |
Effects of Restatement on Conde
Effects of Restatement on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Costs and expenses: | ||||
Cost of service revenue | $ 2,377.6 | $ 1,983.9 | ||
Costs and expenses | 3,342.2 | 2,209.3 | ||
Other income (expense), net | 63.5 | (42.1) | ||
Income from equity affiliates (Note 9) | 9.4 | 25.5 | [1] | |
Income before net interest expense and income taxes | 118.7 | 179.8 | ||
Net interest expense | (82.1) | (13.3) | ||
Income before income taxes | [2] | 36.6 | 166.5 | |
Provision for income taxes | 51.8 | 45.9 | ||
Net income | (15.2) | 120.6 | ||
Net income (loss) attributable to TechnipFMC plc | $ (18.7) | $ 120.7 | ||
Earnings (loss) per share attributable to TechnipFMC plc: | ||||
Basic | $ (0.04) | $ 1.02 | ||
Diluted | $ (0.04) | $ 0.97 | ||
Weighted average shares outstanding: | ||||
Diluted | 466.6 | 124.4 | ||
Previously Reported | ||||
Costs and expenses: | ||||
Cost of service revenue | $ 2,380.5 | |||
Costs and expenses | 3,345.1 | |||
Other income (expense), net | 327.4 | $ (33.9) | ||
Income from equity affiliates (Note 9) | 45.6 | |||
Income before net interest expense and income taxes | 379.7 | 208.1 | ||
Net interest expense | (81.7) | |||
Income before income taxes | 298 | 194.8 | ||
Provision for income taxes | 103.7 | 47.5 | ||
Net income | 194.3 | 147.3 | ||
Net income (loss) attributable to TechnipFMC plc | $ 190.8 | $ 147.4 | ||
Earnings (loss) per share attributable to TechnipFMC plc: | ||||
Basic | $ 0.41 | $ 1.25 | ||
Diluted | $ 0.41 | $ 1.21 | ||
Weighted average shares outstanding: | ||||
Diluted | 468.9 | |||
Restatement Adjustment | ||||
Costs and expenses: | ||||
Cost of service revenue | $ (2.9) | |||
Costs and expenses | (2.9) | |||
Other income (expense), net | (263.9) | $ (8.2) | ||
Income from equity affiliates (Note 9) | (20.1) | |||
Income before net interest expense and income taxes | (261) | (28.3) | ||
Net interest expense | (0.4) | |||
Income before income taxes | (261.4) | (28.3) | ||
Provision for income taxes | (51.9) | (1.6) | ||
Net income | (209.5) | (26.7) | ||
Net income (loss) attributable to TechnipFMC plc | $ (209.5) | $ (26.7) | ||
Earnings (loss) per share attributable to TechnipFMC plc: | ||||
Basic | $ (0.45) | $ (0.23) | ||
Diluted | $ (0.45) | $ (0.24) | ||
[1] | Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. | |||
[2] | Includes amounts attributable to noncontrolling interests. |
Effects of Restatement on Con48
Effects of Restatement on Condensed Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | $ (15.2) | $ 120.6 |
Comprehensive income | 51.8 | 91.9 |
Comprehensive income attributable to TechnipFMC plc | 48.1 | 92.8 |
Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | 194.3 | 147.3 |
Comprehensive income | 261.3 | 118.6 |
Comprehensive income attributable to TechnipFMC plc | 257.6 | 119.5 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | (209.5) | (26.7) |
Comprehensive income | (209.5) | (26.7) |
Comprehensive income attributable to TechnipFMC plc | $ (209.5) | $ (26.7) |
Effects of Restartment on Conde
Effects of Restartment on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Intangible assets, net | $ 1,501.2 | $ 173.7 |
Deferred income taxes | 643.6 | 621.6 |
Total assets | 29,615.9 | 18,689.7 |
Billings in excess of costs | 3,701.1 | 3,323 |
Total current liabilities | 11,719.4 | 10,888.9 |
Accrued pension and other post-retirement benefits, less current portion | 352 | 160.8 |
Other liabilities | 389.9 | 300.6 |
Retained earnings | 3,397.4 | 3,416.1 |
Accumulated other comprehensive loss | (990.4) | (1,057.4) |
Total TechnipFMC plc stockholders' equity | 13,375.8 | 5,123.6 |
Total liabilities and equity | 29,615.9 | 18,689.7 |
Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Intangible assets, net | 1,580 | 255.4 |
Deferred income taxes | 519.4 | 549.3 |
Total assets | 29,570.5 | 18,699.1 |
Billings in excess of costs | 3,478.7 | 3,364.5 |
Total current liabilities | 11,497 | 10,930.4 |
Accrued pension and other post-retirement benefits, less current portion | 351.2 | 160 |
Other liabilities | 390.7 | 301.8 |
Retained earnings | 2,992.2 | 2,801.4 |
Accumulated other comprehensive loss | (408.2) | (475.2) |
Total TechnipFMC plc stockholders' equity | 13,552.8 | 5,091.1 |
Total liabilities and equity | 29,570.5 | 18,699.1 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Intangible assets, net | (78.8) | (81.7) |
Deferred income taxes | 124.2 | 72.3 |
Total assets | 45.4 | (9.4) |
Billings in excess of costs | 222.4 | (41.5) |
Total current liabilities | 222.4 | (41.5) |
Accrued pension and other post-retirement benefits, less current portion | 0.8 | 0.8 |
Other liabilities | (0.8) | (1.2) |
Retained earnings | 405.2 | 614.7 |
Accumulated other comprehensive loss | (582.2) | (582.2) |
Total TechnipFMC plc stockholders' equity | (177) | 32.5 |
Total liabilities and equity | $ 45.4 | $ (9.4) |
Effects of Restatement on Con50
Effects of Restatement on Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash provided (required) by operating activities: | ||
Net income | $ (15.2) | $ 120.6 |
Amortization | 68 | 5.2 |
Deferred income tax provision (benefit) | 4 | (19.8) |
Other | 54 | (2.1) |
Advance payments and billings in excess of costs | 43.3 | (83.4) |
Previously Reported | ||
Cash provided (required) by operating activities: | ||
Net income | 194.3 | 147.3 |
Amortization | 70.9 | |
Deferred income tax provision (benefit) | 55.9 | (18.2) |
Other | 53.6 | (22.2) |
Advance payments and billings in excess of costs | (220.6) | (91.6) |
Restatement Adjustment | ||
Cash provided (required) by operating activities: | ||
Net income | (209.5) | (26.7) |
Amortization | (2.9) | |
Deferred income tax provision (benefit) | (51.9) | (1.6) |
Other | 0.4 | 20.1 |
Advance payments and billings in excess of costs | $ 263.9 | $ 8.2 |
Effects of Restatement on Con51
Effects of Restatement on Condensed Consolidated Statements of Changes in Stockholders' Equity (Detail) $ in Millions | Mar. 31, 2017USD ($) |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | $ 5,111.9 |
Ending balance | 13,382.2 |
Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 5,079.4 |
Ending balance | 13,559.2 |
Restatement Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 32.5 |
Ending balance | (177) |
Ordinary Shares | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 114.7 |
Ending balance | 466.6 |
Ordinary Shares | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 114.7 |
Ending balance | 466.6 |
Ordinary Shares Held in Treasury and Employee Benefit Trust | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (44.5) |
Ending balance | (5.4) |
Ordinary Shares Held in Treasury and Employee Benefit Trust | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (44.5) |
Ending balance | (5.4) |
Capital in Excess of Par Value of Ordinary Shares | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 2,694.7 |
Ending balance | 10,507.6 |
Capital in Excess of Par Value of Ordinary Shares | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 2,694.7 |
Ending balance | 10,507.6 |
Retained Earnings | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 3,416.1 |
Ending balance | 3,397.4 |
Retained Earnings | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 2,801.4 |
Ending balance | 2,992.2 |
Retained Earnings | Restatement Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | 614.7 |
Ending balance | 405.2 |
Accumulated Other Comprehensive Income (Loss) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (1,057.4) |
Ending balance | (990.4) |
Accumulated Other Comprehensive Income (Loss) | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (475.2) |
Ending balance | (408.2) |
Accumulated Other Comprehensive Income (Loss) | Restatement Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (582.2) |
Ending balance | (582.2) |
Noncontrolling Interest | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (11.7) |
Ending balance | 6.4 |
Noncontrolling Interest | Previously Reported | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Beginning balance | (11.7) |
Ending balance | $ 6.4 |
Effects of Restatement on Repor
Effects of Restatement on Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | $ 178.4 | $ 234.8 | |
Income before income taxes | [1] | 36.6 | 166.5 |
Net interest expense | (82.1) | (13.3) | |
Operating segments | Onshore/Offshore | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | 142.8 | 38.4 | |
Corporate items | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Corporate income (expense) | [2] | (59.7) | (55) |
Net interest expense | (82.1) | (13.3) | |
Total corporate items | (141.8) | (68.3) | |
Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | 175.5 | 254.9 | |
Income before income taxes | 298 | 194.8 | |
Net interest expense | (81.7) | ||
Previously Reported | Operating segments | Onshore/Offshore | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | 139.9 | 58.5 | |
Previously Reported | Corporate items | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Corporate income (expense) | 204.2 | (46.8) | |
Net interest expense | (81.7) | ||
Total corporate items | 122.5 | (60.1) | |
Restatement Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | 2.9 | (20.1) | |
Income before income taxes | (261.4) | (28.3) | |
Net interest expense | (0.4) | ||
Restatement Adjustment | Operating segments | Onshore/Offshore | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total segment operating profit | 2.9 | (20.1) | |
Restatement Adjustment | Corporate items | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Corporate income (expense) | (263.9) | (8.2) | |
Net interest expense | (0.4) | ||
Total corporate items | $ (264.3) | $ (8.2) | |
[1] | Includes amounts attributable to noncontrolling interests. | ||
[2] | Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. |
Merger of FMC Technologies an53
Merger of FMC Technologies and Technip (Narrative) (Detail) - USD ($) $ in Millions | Jan. 16, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | |
Business Acquisition | ||||
Merger transaction and integration costs | $ 54.7 | |||
FMC Technologies | ||||
Business Acquisition | ||||
Percentage of business acquired | 100.00% | |||
FMCTI Merger | ||||
Business Acquisition | ||||
FMC Technologies Inc. exchange ratio | [1] | 0.5 | ||
Merger transaction and integration costs | $ 54.7 | |||
Revenues contributed | $ 739.4 | |||
Operating loss contributed | $ (80.9) | |||
FMC Technologies | ||||
Business Acquisition | ||||
FMC Technologies Inc. exchange ratio | 1 | |||
Technip | ||||
Business Acquisition | ||||
FMC Technologies Inc. exchange ratio | 2 | |||
[1] | As the calculation is deemed to reflect a share capital increase of the accounting acquirer, the FMC Technologies, Inc. exchange ratio (1 share of TechnipFMC for 1 share of FMC Technologies, Inc. as provided in the business combination agreement) is adjusted by dividing the FMC Technologies exchange ratio by the Technip exchange ratio (2 shares of TechnipFMC for 1 share of Technip as provided in the business combination agreement), i.e., 1/2 = 0.5 in order to reflect the number of shares of Technip that FMC Technologies stockholders would have received if Technip was to have issued its own shares. |
Merger of FMC Technologies an54
Merger of FMC Technologies and Technip (Acquisition Date Fair Value) (Detail) $ / shares in Units, $ in Millions | Jan. 16, 2017USD ($)$ / sharesshares | Mar. 31, 2017shares | Dec. 31, 2016shares | |
Business Acquisition | ||||
Shares subject to exchange (in shares) | 466,600,000 | 118,900,000 | ||
Euro to U.S. dollar exchange rate | 1.0594 | |||
FMC Technologies | ||||
Business Acquisition | ||||
FMC Technologies Inc. exchange ratio | 1 | |||
Technip | ||||
Business Acquisition | ||||
FMC Technologies Inc. exchange ratio | 2 | |||
FMCTI Merger | ||||
Business Acquisition | ||||
Shares subject to exchange (in shares) | 228,900,000 | |||
FMC Technologies Inc. exchange ratio | [1] | 0.5 | ||
Shares of TechnipFMC issued (in shares) | 114,400,000 | |||
Value per share of Technip (usd per share) | $ / shares | [2] | $ 71.40 | ||
Total purchase consideration | $ | $ 8,170.7 | |||
[1] | As the calculation is deemed to reflect a share capital increase of the accounting acquirer, the FMC Technologies, Inc. exchange ratio (1 share of TechnipFMC for 1 share of FMC Technologies, Inc. as provided in the business combination agreement) is adjusted by dividing the FMC Technologies exchange ratio by the Technip exchange ratio (2 shares of TechnipFMC for 1 share of Technip as provided in the business combination agreement), i.e., 1/2 = 0.5 in order to reflect the number of shares of Technip that FMC Technologies stockholders would have received if Technip was to have issued its own shares. | |||
[2] | Closing price of Technip's ordinary shares on Euronext Paris on January 16, 2017 in Euro converted at the Euro to U.S. dollar exchange rate of $1.0594 on January 16, 2017. |
Merger of FMC Technologies an55
Merger of FMC Technologies and Technip (Assets Acquired and Liabilities Assumed) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Jan. 16, 2017 | Dec. 31, 2016 |
Liabilities: | |||
Goodwill | $ 9,023.6 | $ 3,718.3 | |
FMCTI Merger | |||
Assets: | |||
Cash | $ 1,479.2 | ||
Accounts receivable | 1,247.4 | ||
Inventory | 764.8 | ||
Income taxes receivable | 139.2 | ||
Other current assets | 282.2 | ||
Property, plant and equipment | 1,351.3 | ||
Intangible assets | 1,390.3 | ||
Deferred income taxes | 67 | ||
Other long-term assets | 167.3 | ||
Total identifiable assets acquired | 6,888.7 | ||
Liabilities: | |||
Short-term and current portion of long-term debt | 327.1 | ||
Accounts payable, trade | 386 | ||
Advance payments | 467 | ||
Income taxes payable | 92.1 | ||
Other current liabilities | 518.6 | ||
Long-term debt, less current portion | 1,466.6 | ||
Accrued pension and other post-retirement benefits, less current portion | 195.5 | ||
Deferred income taxes | 433.5 | ||
Other long-term liabilities | 123.6 | ||
Total liabilities assumed | 4,010 | ||
Net identifiable assets acquired | 2,878.7 | ||
Goodwill | 5,292 | ||
Net assets acquired | $ 8,170.7 |
Merger of FMC Technologies an56
Merger of FMC Technologies and Technip (Goodwill Allocation) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Jan. 16, 2017 | Dec. 31, 2016 |
Business Acquisition | |||
Goodwill | $ 9,023.6 | $ 3,718.3 | |
FMCTI Merger | |||
Business Acquisition | |||
Goodwill | $ 5,292 | ||
FMCTI Merger | Subsea | |||
Business Acquisition | |||
Goodwill | 3,078.7 | ||
FMCTI Merger | Onshore/Offshore | |||
Business Acquisition | |||
Goodwill | 1,677 | ||
FMCTI Merger | Surface Technologies | |||
Business Acquisition | |||
Goodwill | $ 536.3 |
Merger of FMC Technologies an57
Merger of FMC Technologies and Technip (Identifiable Intangible Assets Acquired) (Detail) - FMCTI Merger $ in Millions | Jan. 16, 2017USD ($) |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 1,390.3 |
Technology-Based Intangible Assets | |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 240 |
Estimated Useful Lives | 10 years |
Order or Production Backlog | |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 175 |
Estimated Useful Lives | 2 years |
Customer Relationships | |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 285 |
Estimated Useful Lives | 10 years |
Trade Names | |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 635 |
Estimated Useful Lives | 20 years |
Computer Software, Intangible Asset | |
Acquired Finite-Lived Intangible Assets | |
Total identifiable intangible assets acquired | $ 55.3 |
Merger of FMC Technologies an58
Merger of FMC Technologies and Technip (Pro Forma Impact) (Detail) - FMCTI Merger - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition | ||
Revenue | $ 3,500.9 | $ 3,611.2 |
Net income (loss) attributable to TechnipFMC | $ (103.5) | $ 46.4 |
Diluted earnings per share (usd per share) | $ (0.22) | $ 0.10 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Number Of Shares Used For Basic And Diluted Earnings Per Share ("EPS") Calculation ) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Net income (loss) attributable to TechnipFMC plc | $ (18.7) | $ 120.7 |
After-tax interest expense related to dilutive shares | 0.4 | |
Net income (loss) attributable to TechnipFMC plc adjusted for dilutive effects | $ (18.7) | $ 121.1 |
Weighted average number of shares outstanding (in shares) | 466.6 | 118.2 |
Total shares and dilutive securities (in shares) | 466.6 | 124.4 |
Basic earnings (loss) per share attributable to TechnipFMC plc (usd per share) | $ (0.04) | $ 1.02 |
Diluted earnings (loss) per share attributable to TechnipFMC plc (usd per share) | $ (0.04) | $ 0.97 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Dilutive effect of share-based payment arrangements (in shares) | 1 | |
Convertible Debt Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Dilutive effect of convertible bonds (in shares) | 5.2 |
Restructuring and Impairment 60
Restructuring and Impairment Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring and Impairment | ||
Restructuring and impairment expense | $ 9.7 | $ 35.7 |
Subsea | ||
Restructuring and Impairment | ||
Restructuring and impairment expense | 6.7 | 0.3 |
Onshore/Offshore | ||
Restructuring and Impairment | ||
Restructuring and impairment expense | (0.3) | $ 35.4 |
Surface Technologies | ||
Restructuring and Impairment | ||
Restructuring and impairment expense | 1.4 | |
Corporate and Other | ||
Restructuring and Impairment | ||
Restructuring and impairment expense | $ 1.9 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 278.4 | $ 272.9 |
Work in process | 216.6 | 36.1 |
Finished goods | 540.2 | 64.6 |
Inventory, gross | 1,035.2 | 373.6 |
Valuation adjustments | (51.7) | (38.9) |
Inventories, net | $ 983.5 | $ 334.7 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Other Current Assets [Abstract] | ||
Value added tax receivables | $ 432.3 | $ 319.4 |
Other tax receivables | 183.8 | 124.9 |
Prepaid expenses | 161.3 | 106.4 |
Other | 313 | 248.5 |
Other current assets | $ 1,090.4 | $ 799.2 |
Equity Method Investments (Deta
Equity Method Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Schedule of Equity Method Investments | ||||
Income from equity affiliates | $ 9.4 | $ 25.5 | [1] | |
Subsea | ||||
Schedule of Equity Method Investments | ||||
Income from equity affiliates | $ 9.4 | 1.9 | [1] | |
Onshore/Offshore | ||||
Schedule of Equity Method Investments | ||||
Income from equity affiliates | [1] | $ 23.6 | ||
[1] | Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Accruals on completed contracts | $ 304.8 | $ 271.9 |
Deferred income on contracts | 364.6 | 407.6 |
Contingencies related to contracts | 390.9 | 370.1 |
Other taxes payable | 236.2 | 143.5 |
Redeemable financial liability | 88.2 | 33.7 |
Other | 805.6 | 598.5 |
Total other current liabilities | $ 2,190.3 | $ 1,825.3 |
Debt (Schedule Of Long-Term Deb
Debt (Schedule Of Long-Term Debt) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 29, 2017 | Dec. 31, 2016 | Oct. 31, 2013 | Jun. 30, 2012 | Jul. 27, 2010 |
Debt Instrument | ||||||
Capital leases | $ 28.3 | |||||
Total long-term debt | 3,581.8 | $ 2,552.9 | ||||
Less: current portion | (499) | (683.6) | ||||
Long-term debt, less current portion | $ 3,082.8 | $ 1,869.3 | ||||
2.00% Senior Notes due 2017 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 2.00% | 2.00% | ||||
3.45% Senior Notes due 2022 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.45% | 3.45% | ||||
5.00% Notes due 2020 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | ||||
3.40% Notes due 2022 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.40% | 3.40% | ||||
3.15% Notes due 2023 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.15% | 3.15% | ||||
3.15% Notes due 2023 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.15% | 3.15% | ||||
4.00% Notes due 2027 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.00% | 4.00% | ||||
4.00% Notes due 2032 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.00% | 4.00% | ||||
3.75% Notes due 2033 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.75% | 3.75% | ||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Long-term debt | $ 0 | $ 0 | ||||
Line of Credit | Bilateral Credit Facility | ||||||
Debt Instrument | ||||||
Long-term debt | 0 | 0 | ||||
Commercial paper | ||||||
Debt Instrument | ||||||
Long-term debt | 870.3 | 210.8 | ||||
Synthetic bonds due 2021 | ||||||
Debt Instrument | ||||||
Long-term debt | $ 441.5 | 428 | ||||
Convertible Debt | ||||||
Debt Instrument | ||||||
Long-term debt | $ 524.5 | |||||
Senior Notes | 2.00% Senior Notes due 2017 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 2.00% | 2.00% | 2.00% | |||
Long-term debt | $ 300 | |||||
Senior Notes | 3.45% Senior Notes due 2022 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.45% | 3.45% | 3.45% | |||
Long-term debt | $ 500 | |||||
Private Placement Notes | 5.00% Notes due 2020 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | |||
Long-term debt | $ 215 | $ 209.7 | ||||
Private Placement Notes | 3.40% Notes due 2022 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.40% | 3.40% | 3.40% | |||
Long-term debt | $ 161.9 | $ 158 | ||||
Private Placement Notes | 3.15% Notes due 2023 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | |||
Long-term debt | $ 139.5 | $ 136.1 | ||||
Private Placement Notes | 3.15% Notes due 2023 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | |||
Long-term debt | $ 134.8 | $ 131.4 | ||||
Private Placement Notes | 4.00% Notes due 2027 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | |||
Long-term debt | $ 81 | $ 79 | ||||
Private Placement Notes | 4.00% Notes due 2032 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | |||
Long-term debt | $ 103.8 | $ 101.2 | ||||
Private Placement Notes | 3.75% Notes due 2033 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||
Long-term debt | $ 104.4 | $ 101.8 | ||||
Bank borrowings | ||||||
Debt Instrument | ||||||
Long-term debt | 454.3 | 452.1 | ||||
Other | ||||||
Debt Instrument | ||||||
Long-term debt | $ 47 | $ 20.3 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Detail) $ in Millions | Jan. 17, 2017USD ($) |
Revolving Credit Facility | Federal Funds Rate and Overnight Bank Funding Rate spread | |
Line of Credit Facility | |
Basis spread on variable rate | 0.50% |
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |
Line of Credit Facility | |
Basis spread on variable rate | 1.00% |
Revolving Credit Facility | Minimum | LIBOR and EURIBOR Loans | |
Line of Credit Facility | |
Basis spread on variable rate | 0.82% |
Revolving Credit Facility | Minimum | Base Rate | |
Line of Credit Facility | |
Basis spread on variable rate | 0.00% |
Revolving Credit Facility | Maximum | LIBOR and EURIBOR Loans | |
Line of Credit Facility | |
Basis spread on variable rate | 1.30% |
Revolving Credit Facility | Maximum | Base Rate | |
Line of Credit Facility | |
Basis spread on variable rate | 0.30% |
Line of Credit | Revolving Credit Facility | |
Line of Credit Facility | |
Initiation date | Jan. 17, 2017 |
Maximum borrowing capacity | $ 2,500 |
Conditional increase in borrowing capacity | 500 |
Line of Credit | Letter of Credit | JPMorgan Chase Bank | |
Line of Credit Facility | |
Maximum borrowing capacity | $ 1,500 |
Debt (Bilateral Credit Faciliti
Debt (Bilateral Credit Facilities) (Detail) - Line of Credit - Bilateral Credit Facility | Mar. 31, 2017EUR (€) |
Line of Credit Facility | |
Maximum borrowing capacity | € 340,000,000 |
Bilateral Credit Facility Expiring in May 2019 | |
Line of Credit Facility | |
Maximum borrowing capacity | 80,000,000 |
Second Bilateral Credit Facility Expiring in May 2019 | |
Line of Credit Facility | |
Maximum borrowing capacity | 80,000,000 |
Bilateral Credit Facility Expiring in June 2019 | |
Line of Credit Facility | |
Maximum borrowing capacity | 80,000,000 |
Bilateral Credit Facility Expiring in May 2021 | |
Line of Credit Facility | |
Maximum borrowing capacity | € 100,000,000 |
Debt (Commercial Paper) (Detail
Debt (Commercial Paper) (Detail) € in Millions, $ in Millions | Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) |
Commercial paper | ||
Debt Instrument | ||
Maximum borrowing capacity | € | € 1,000 | |
Commercial paper | ||
Debt Instrument | ||
Maximum borrowing capacity | $ | $ 1,000 | |
U.S. dollar | Commercial paper | ||
Debt Instrument | ||
Long term debt, weighted average interest rate | 1.30% | 1.30% |
Euro | Commercial paper | ||
Debt Instrument | ||
Long term debt, weighted average interest rate | (0.22%) | (0.22%) |
Debt (Synthetic Bonds) (Detail)
Debt (Synthetic Bonds) (Detail) - Convertible Debt - Synthetic bonds due 2021 | Mar. 10, 2016EUR (€)€ / shares | Mar. 03, 2016EUR (€)€ / shares | Feb. 03, 2016€ / shares | Jan. 25, 2016EUR (€) |
Debt Instrument | ||||
Principal amount issued | € 375,000,000 | |||
Interest rate, stated percentage | 0.875% | |||
Additional principal amount issued | € 75,000,000 | |||
Premium on debt issued | 112.43802% | |||
Share reference price (euros per share) | € / shares | € 48.8355 | € 40.7940 | ||
Conversion premium percentage | 40.00% | |||
Conversion price (euros per share) | € / shares | € 28.1035 | € 57.1116 | ||
Nominal value of each synthetic bond | € 100,000 | |||
Conversion ratio | 0.003558257 |
Debt (Convertible Bonds) (Detai
Debt (Convertible Bonds) (Detail) - Convertible Debt - 2011-2017 Convertible Bonds € in Millions, $ in Millions | 1 Months Ended | |
Dec. 31, 2011USD ($) | Dec. 15, 2011EUR (€)Bonds | |
Debt Instrument | ||
Number of convertible bonds issued | Bonds | 5,178,455 | |
Face amount | € | € 497.6 | |
Cash consideration | $ | $ 936.4 |
Debt (Senior Notes) (Detail)
Debt (Senior Notes) (Detail) - USD ($) $ in Millions | Mar. 29, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2016 |
2.00% Senior Notes due 2017 | ||||
Debt Instrument | ||||
Interest rate, stated percentage | 2.00% | 2.00% | ||
3.45% Senior Notes due 2022 | ||||
Debt Instrument | ||||
Interest rate, stated percentage | 3.45% | 3.45% | ||
Senior Notes | ||||
Debt Instrument | ||||
Maximum aggregate principal amount | $ 800 | |||
Senior Notes | 2.00% Senior Notes due 2017 | ||||
Debt Instrument | ||||
Maximum aggregate principal amount | $ 300 | |||
Interest rate, stated percentage | 2.00% | 2.00% | 2.00% | |
Debt Instrument, Maturity Date | Oct. 1, 2017 | |||
Face amount | $ 215.4 | |||
Senior Notes | 3.45% Senior Notes due 2022 | ||||
Debt Instrument | ||||
Maximum aggregate principal amount | $ 500 | |||
Interest rate, stated percentage | 3.45% | 3.45% | 3.45% | |
Debt Instrument, Maturity Date | Oct. 1, 2022 | |||
Face amount | $ 459.8 | |||
Percentage of principal amount redemption price | 100.00% |
Debt (Private Placement Notes)
Debt (Private Placement Notes) (Detail) - EUR (€) € in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2013 | Jun. 30, 2012 | Jul. 27, 2010 |
5.00% Notes due 2020 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 5.00% | 5.00% | |||
3.40% Notes due 2022 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 3.40% | 3.40% | |||
4.00% Notes due 2027 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 4.00% | 4.00% | |||
4.00% Notes due 2032 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 4.00% | 4.00% | |||
3.75% Notes due 2033 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 3.75% | 3.75% | |||
3.15% Notes due 2023 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 3.15% | 3.15% | |||
3.15% Notes due 2023 | |||||
Debt Instrument | |||||
Interest rate, stated percentage | 3.15% | 3.15% | |||
Private Placement Notes | |||||
Debt Instrument | |||||
Face amount | € 355 | € 325 | |||
Private Placement Notes | 5.00% Notes due 2020 | |||||
Debt Instrument | |||||
Face amount | € 200 | ||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | ||
Private Placement Notes | 3.40% Notes due 2022 | |||||
Debt Instrument | |||||
Face amount | € 150 | ||||
Interest rate, stated percentage | 3.40% | 3.40% | 3.40% | ||
Private Placement Notes | 4.00% Notes due 2027 | |||||
Debt Instrument | |||||
Face amount | € 75 | ||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | ||
Private Placement Notes | 4.00% Notes due 2032 | |||||
Debt Instrument | |||||
Face amount | € 100 | ||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | ||
Private Placement Notes | 3.75% Notes due 2033 | |||||
Debt Instrument | |||||
Face amount | € 100 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | ||
Private Placement Notes | 3.15% Notes due 2023 | |||||
Debt Instrument | |||||
Face amount | € 130 | ||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | ||
Private Placement Notes | 3.15% Notes due 2023 | |||||
Debt Instrument | |||||
Face amount | € 125 | ||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% |
Debt (Term Loan) (Detail)
Debt (Term Loan) (Detail) - Term Loan £ in Millions | Dec. 31, 2016GBP (£) |
Debt Instrument | |
Face amount | £ 160 |
Interest rate, stated percentage | 2.813% |
Other Liabilities (Detail)
Other Liabilities (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms | |
Gain on asset acquisition | $ 7.7 |
Redeemable financial liability | 174.8 |
Previously Reported | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms | |
Gain on asset acquisition | 72.6 |
Restatement Adjustment | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms | |
Gain on asset acquisition | (64.9) |
Other Current Liabilities | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms | |
Current portion of mandatorily redeemable financial liability | $ 33.7 |
Commitments and Contingent Li75
Commitments and Contingent Liabilities (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Guarantor Obligations | ||
Guarantor obligations, maximum exposure, undiscounted | $ 4,779.8 | |
Indirect Guarantee of Indebtedness | ||
Guarantor Obligations | ||
Financial instruments expiration period | P4Y | |
Financial guarantees | ||
Guarantor Obligations | ||
Guarantor obligations, maximum exposure, undiscounted | $ 827.7 | [1] |
Performance guarantees | ||
Guarantor Obligations | ||
Guarantor obligations, maximum exposure, undiscounted | $ 3,952.1 | [2] |
[1] | Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party. These tend to be drawn down only if the Company fails to fulfill its financial obligations. | |
[2] | Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a nonfinancial obligating agreement. Events that trigger payment are performance related, such as failure to ship a product or provide a service. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Cash dividends declared | $ 0 | $ 0 |
Stockholders' Equity (Treasury
Stockholders' Equity (Treasury stock activity) (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Capital Stock | ||
Beginning balance | 118,900,000 | |
Ending balance | 466,600,000 | |
Ordinary Shares | ||
Capital Stock | ||
Beginning balance | 119,200,000 | 119,000,000 |
Net capital increases due to the merger of FMC Technologies and Technip (in shares) | 347,400,000 | |
Ending balance | 466,600,000 | 119,000,000 |
Ordinary Shares Held in Treasury and Employee Benefit Trust | ||
Capital Stock | ||
Net stock purchased for (sold from) employee benefit trust | 100,000 | |
Ending balance | 100,000 | |
Treasury Stock | ||
Capital Stock | ||
Beginning balance | 300,000 | 800,000 |
Net stock purchased for (sold from) employee benefit trust (in shares) | (100,000) | |
Treasury stock cancellation due to the merger of FMC Technologies and Technip (in shares) | (300,000) | |
Ending balance | 700,000 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | $ 5,111.9 | |
Other comprehensive income (loss), net of tax | 67 | $ (28.7) |
Ending balance | 13,382.2 | |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (849.8) | |
Other comprehensive income (loss) before reclassifications, net of tax | 6.6 | |
Other comprehensive income (loss), net of tax | 6.6 | |
Ending balance | (843.2) | |
Available-For-Sale Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Other comprehensive income (loss) before reclassifications, net of tax | 0.8 | |
Other comprehensive income (loss), net of tax | 0.8 | |
Ending balance | 0.8 | |
Hedging | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (126.9) | |
Other comprehensive income (loss) before reclassifications, net of tax | 24.7 | |
Reclassification adjustment for net losses (gains) included in net income, net of tax | 34.4 | |
Other comprehensive income (loss), net of tax | 59.1 | |
Ending balance | (67.8) | |
Defined Pension and Other Post-retirement Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (80.7) | |
Reclassification adjustment for net losses (gains) included in net income, net of tax | 0.5 | |
Other comprehensive income (loss), net of tax | 0.5 | |
Ending balance | (80.2) | |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||
Beginning balance | (1,057.4) | |
Other comprehensive income (loss) before reclassifications, net of tax | 32.1 | |
Reclassification adjustment for net losses (gains) included in net income, net of tax | 34.9 | |
Other comprehensive income (loss), net of tax | 67 | |
Ending balance | $ (990.4) |
Stockholder's Equity (Reclassif
Stockholder's Equity (Reclassification out of Other Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||
Revenue | $ 3,388 | $ 2,405.7 | |
Research and development expense | (43.4) | (20.3) | |
Other (expense), net | 63.5 | (42.1) | |
Income before income taxes | [1] | 36.6 | 166.5 |
Provision (benefit) for income taxes | 51.8 | 45.9 | |
Net income | (15.2) | 120.6 | |
Reclassification out of Accumulated Other Comprehensive Income | Hedging | Foreign Exchange Contract | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Revenue | (14.6) | ||
Cost of sales | (0.1) | ||
Research and development expense | (0.1) | ||
Other (expense), net | (28.4) | (63.5) | |
Income before income taxes | (43.2) | (63.5) | |
Provision (benefit) for income taxes | (8.8) | (20.7) | |
Net income | (34.4) | (42.8) | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial gain (loss) | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Amortization of actuarial gain (loss) | [2] | (0.5) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credit (cost) | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Amortization of prior service credit (cost) | [2] | (0.2) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Defined Pension and Other Post-retirement Benefits | |||
Reclassification out of Accumulated Other Comprehensive Income | |||
Income before income taxes | (0.7) | (0.2) | |
Provision (benefit) for income taxes | (0.2) | (0.1) | |
Net income | $ (0.5) | $ (0.1) | |
[1] | Includes amounts attributable to noncontrolling interests. | ||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Statutory income tax rate | 19.30% | 34.40% | |
Effective tax rate | 141.50% | 27.60% | |
Domestic Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||
Income Tax Contingency [Line Items] | |||
Statutory income tax rate | 19.30% | ||
Domestic Tax Authority | Ministry of the Economy, Finance and Industry, France | |||
Income Tax Contingency [Line Items] | |||
Statutory income tax rate | 34.40% |
Income Taxes Effective Tax Rate
Income Taxes Effective Tax Rate Reconciliation (Detail) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory income tax rate | 19.30% | 34.40% |
Foreign earnings subject to different tax rates | 14.80% | (11.70%) |
Branch profits tax | 8.50% | |
Deemed dividends | 9.60% | |
State and other complement tax | 23.20% | 2.60% |
Return to provision | 10.40% | (4.90%) |
Valuation allowance | 51.40% | 12.00% |
Other | 4.50% | (4.80%) |
Effective tax rate | 141.50% | 27.60% |
Pension And Other Post-retire82
Pension And Other Post-retirement Benefits (Components Of Net Periodic Benefit Cost) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 4.6 | $ 2.8 |
Interest cost | 4.3 | 2.6 |
Expected return on plan assets | (7.7) | (2) |
Amortization of prior service cost (credit) | 0.2 | 0.1 |
Amortization of actuarial loss (gain), net | 0.5 | 0.1 |
Settlement cost | 0.2 | |
Net periodic benefit cost | 2.1 | $ 3.6 |
Pension contributions | 12.6 | |
United States Pension Plan | ||
Defined Benefit Plan Disclosure | ||
Service cost | 2.2 | |
Interest cost | 5.8 | |
Expected return on plan assets | (10.5) | |
Net periodic benefit cost | (2.5) | |
Pension contributions | $ 0.6 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jan. 11, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense for nonvested stock units | $ 11.4 | $ 6 | |
TechnipFMC plc Incentive Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (in shares) | 24,100,000 |
Derivative Financial Instrume84
Derivative Financial Instruments (Schedule Of Notional Amounts Of Outstanding Derivative Positions) (Detail) - Mar. 31, 2017 € in Millions, £ in Millions, SGD in Millions, NOK in Millions, NGN in Millions, MYR in Millions, CAD in Millions, BRL in Millions, AUD in Millions, $ in Millions | EUR (€) | USD ($) | AUD | BRL | CAD | MYR | GBP (£) | NOK | NGN | SGD |
Foreign Exchange Forward | Australian dollar | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | $ 180.3 | AUD 236.6 | ||||||||
Foreign Exchange Forward | Brazilian real | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 179.8 | BRL 571.9 | ||||||||
Foreign Exchange Forward | British pound | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 273.7 | £ 219.4 | ||||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 129.8 | CAD 172.7 | ||||||||
Foreign Exchange Forward | Euro | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | € 895 | 966.2 | ||||||||
Foreign Exchange Forward | Malaysian ringgit | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 52.7 | MYR 233.2 | ||||||||
Foreign Exchange Forward | Nigerian naira | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 17.2 | NGN 5,341.3 | ||||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 107.7 | NOK 919.9 | ||||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 92.3 | SGD 129 | ||||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 1,741 | |||||||||
Derivative financial instruments - Embedded Derivatives | Brazilian real | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 17.1 | BRL 54.4 | ||||||||
Derivative financial instruments - Embedded Derivatives | Euro | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | € 23.7 | 25.4 | ||||||||
Derivative financial instruments - Embedded Derivatives | Norwegian krone | Notional Amount Sold | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | 27.9 | NOK 240.2 | ||||||||
Derivative financial instruments - Embedded Derivatives | U.S. dollar | Notional Amount Bought | ||||||||||
Derivative | ||||||||||
Derivative, notional amount | $ 68.7 |
Derivative Financial Instrume85
Derivative Financial Instruments (Fair Value Of Derivative Instruments In Statement Of Financial Position) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Derivative assets | $ 213.3 | $ 238 |
Derivative liabilities | 339.2 | 410.7 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 84.7 | 57.9 |
Derivative liabilities | 193.2 | 230.6 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 67.4 | 47.2 |
Derivative liabilities | 154.6 | 183 |
Derivatives Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 17.3 | 10.7 |
Derivative liabilities | 38.6 | 47.6 |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value | ||
Derivative assets | 20.2 | |
Derivative liabilities | 37.6 | |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Current - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 17.2 | |
Derivative liabilities | 25.9 | |
Derivatives Not Designated As Hedging Instruments | Foreign Exchange Contract | Long-Term - Derivative Financial Instruments | ||
Derivatives, Fair Value | ||
Derivative assets | 3 | |
Derivative liabilities | 11.7 | |
Derivatives Not Designated As Hedging Instruments | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | ||
Derivatives, Fair Value | ||
Derivative assets | 108.4 | 180.1 |
Derivatives Not Designated As Hedging Instruments | Derivative financial instruments - Embedded Derivatives | ||
Derivatives, Fair Value | ||
Derivative liabilities | $ 108.4 | $ 180.1 |
Derivative Financial Instrume86
Derivative Financial Instruments (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Loss on cash flow hedge due to forecasted transaction probably of not occurring | $ (2.7) | ||
Gain on cash flow hedge due to forecasted transaction probably of not occurring | $ 10.6 | ||
Cash flow hedges of forecasted transactions, net of tax, in accumulated OCI gain (loss) | (67.8) | $ (126.9) | |
Cash flow hedge gain (loss) expected to be reclassified within 12 months | $ (65.4) | ||
Hedges maturity year | 2,020 |
Derivative Financial Instrume87
Derivative Financial Instruments Schedule of Fair Value Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other income (expense), net | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income | $ 20.8 | $ (16.2) |
Derivative Financial Instrume88
Derivative Financial Instruments (Derivative Instruments In Cash Flow Hedging Relationships Gain (Loss)) (Detail) - Foreign Exchange Contract - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | $ 27.8 | $ 1.6 |
Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | 0.3 | |
Cost of sales | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | (0.5) | |
Other income (expense), net | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | 28 | 1.6 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Recognized in OCI (Effective Portion) | 34.5 | (45.5) |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (43.2) | (63.5) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (2.5) | 9.8 |
Cash Flow Hedging | Revenue | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (14.6) | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1.8 | |
Cash Flow Hedging | Cost of sales | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.1) | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1.2) | |
Cash Flow Hedging | Research and development expense | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.1) | |
Cash Flow Hedging | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (28.4) | (63.5) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (3.1) | $ 9.8 |
Derivative Financial Instrume89
Derivative Financial Instruments Offsetting Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Assets Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 213.3 | 238 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (81.5) | (57.9) |
Net Amount | $ 131.8 | $ 180.1 |
Derivative Financial Instrume90
Derivative Financial Instruments Offsetting Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability Collateral | $ 0 | $ 0 |
Gross Amount Recognized | 339.2 | 410.7 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (81.5) | (57.9) |
Net Amount | $ 257.7 | $ 352.8 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured On A Recurring Basis) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | $ 131.8 | $ 180.1 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 174.8 | ||
Derivative financial instrument liabilities | 257.7 | 352.8 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Traded securities | [1] | 26.2 | |
Money market fund | 1.7 | ||
Stable value fund | [2] | 0.8 | |
Available-for-sale securities | 29.5 | 27.9 | |
Total assets | 271.5 | 265.9 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities | 582.1 | 585.5 | |
Fair Value, Measurements, Recurring [Member] | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 108.4 | 180.1 | |
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 104.9 | 57.9 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 230.8 | 230.6 | |
Fair Value, Measurements, Recurring [Member] | Derivative financial instruments - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 108.4 | 180.1 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Traded securities | [1] | 26.2 | |
Available-for-sale securities | 29.5 | 27.9 | |
Total assets | 55.7 | 27.9 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market fund | 1.7 | ||
Total assets | 215 | 238 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities | 339.2 | 410.7 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 108.4 | 180.1 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Contract | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 104.9 | 57.9 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 230.8 | 230.6 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative financial instruments - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 108.4 | 180.1 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Total liabilities | 242.9 | 174.8 | |
Mandatorily Redeemable Financial Liability | Fair Value, Measurements, Recurring [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 242.9 | 174.8 | |
Mandatorily Redeemable Financial Liability | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | $ 242.9 | $ 174.8 | |
[1] | Includes equity securities, fixed income and other investments measured at fair value. | ||
[2] | 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. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value Disclosures [Abstract] | |
Increase in liability due to one percentage point decrease in discount rate | $ 4 |
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. |
Fair Value Measurements (Level
Fair Value Measurements (Level 3 Reconciliation) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance at beginning of period | $ 174.8 |
Remeasurement adjustment included in earnings | 68.1 |
Settlements | 0 |
Balance at end of period | $ 242.9 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Debt) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Synthetic bonds due 2021 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 633.6 | $ 663.2 |
Synthetic bonds due 2021 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 441.5 | $ 428 |
2.00% Senior Notes due 2017 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 2.00% | 2.00% | |
2.00% Senior Notes due 2017 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 300.6 | |
2.00% Senior Notes due 2017 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 300 | |
3.45% Senior Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 3.45% | 3.45% | |
3.45% Senior Notes due 2022 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 506.8 | |
3.45% Senior Notes due 2022 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 500 | |
5.00% Notes due 2020 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 5.00% | 5.00% | |
5.00% Notes due 2020 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 240.8 | $ 237.7 |
5.00% Notes due 2020 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 215 | $ 209.7 |
3.40% Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 3.40% | 3.40% | |
3.40% Notes due 2022 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 178 | $ 177.6 |
3.40% Notes due 2022 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 161.9 | $ 158 |
3.15% Notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 3.15% | 3.15% | |
3.15% Notes due 2023 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 154.5 | $ 152 |
3.15% Notes due 2023 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 139.5 | $ 136.1 |
3.15% Notes due 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 3.15% | 3.15% | |
3.15% Notes due 2023 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 146.5 | $ 142.5 |
3.15% Notes due 2023 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 134.8 | $ 131.4 |
4.00% Notes due 2027 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 4.00% | 4.00% | |
4.00% Notes due 2027 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 90.9 | $ 89.5 |
4.00% Notes due 2027 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 81 | $ 79 |
4.00% Notes due 2032 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 4.00% | 4.00% | |
4.00% Notes due 2032 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 123.3 | $ 122.1 |
4.00% Notes due 2032 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 103.8 | $ 101.2 |
3.75% Notes due 2033 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Senior notes, interest rate, as a percent | 3.75% | 3.75% | |
3.75% Notes due 2033 | Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [1] | $ 108.2 | $ 104.1 |
3.75% Notes due 2033 | Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of debt | [2] | $ 104.4 | $ 101.8 |
[1] | Restated balances related to adjustments to equity interests due to the use of incorrect foreign exchange rates. | ||
[2] | Carrying amounts are shown net of unamortized debt discounts and premiums and unamortized debt issuance costs. |
Business Segments (Schedule Of
Business Segments (Schedule Of Segment Revenue And Segment Operating Profit) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information | |||
Total revenue | $ 3,388 | $ 2,405.7 | |
Total segment operating profit | 178.4 | 234.8 | |
Net interest expense | (82.1) | (13.3) | |
Income before income taxes | [1] | 36.6 | 166.5 |
Operating segments | Subsea | |||
Segment Reporting Information | |||
Total revenue | 1,376.7 | 1,517.2 | |
Total segment operating profit | 54.2 | 196.4 | |
Operating segments | Onshore/Offshore | |||
Segment Reporting Information | |||
Total revenue | 1,764 | 888.5 | |
Total segment operating profit | 142.8 | 38.4 | |
Operating segments | Surface Technologies | |||
Segment Reporting Information | |||
Total revenue | 248.4 | ||
Total segment operating profit | (18.6) | ||
Segment reconciling items | |||
Segment Reporting Information | |||
Total revenue | (1.1) | ||
Corporate items | |||
Segment Reporting Information | |||
Corporate income (expense) | [2] | (59.7) | (55) |
Net interest expense | (82.1) | (13.3) | |
Total corporate items | $ (141.8) | $ (68.3) | |
[1] | Includes amounts attributable to noncontrolling interests. | ||
[2] | Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. |
Business Segments (Segment Oper
Business Segments (Segment Operating Capital Employed And Segment Assets) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information | |||
Total assets | $ 29,615.9 | $ 18,689.7 | |
Operating segments | |||
Segment Reporting Information | |||
Total assets | 20,685.8 | 11,052.4 | |
Operating segments | Subsea | |||
Segment Reporting Information | |||
Total assets | 13,946.1 | 7,823.1 | |
Operating segments | Onshore/Offshore | |||
Segment Reporting Information | |||
Total assets | 4,888.9 | 3,229.3 | |
Operating segments | Surface Technologies | |||
Segment Reporting Information | |||
Total assets | 1,871.5 | ||
Intercompany eliminations | |||
Segment Reporting Information | |||
Total assets | (20.7) | ||
Corporate items | |||
Segment Reporting Information | |||
Total assets | [1] | $ 8,930.1 | $ 7,637.3 |
[1] | 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. |
Subsequent Events (Detail)
Subsequent Events (Detail) | Apr. 26, 2017USD ($) |
Subsequent Event | |
Subsequent Event | |
Authorized repurchase amount | $ 500,000,000 |