Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37983 | |
Entity Registrant Name | TechnipFMC plc | |
Entity Incorporation, State or Country Code | X0 | |
Entity Tax Identification Number | 98-1283037 | |
Entity Address, Address Line One | One St. Paul’s Churchyard | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | EC4M 8AP | |
Country Region | 44 | |
City Area Code | 203 | |
Local Phone Number | 429-3950 | |
Title of 12(b) Security | Ordinary shares, $1.00 par value per share | |
Trading Symbol | FTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 447,064,767 | |
Entity Central Index Key | 0001681459 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenue: | |||||
Lease revenue | $ 85.7 | $ 60.7 | $ 200.9 | $ 163.4 | |
Total revenue | 3,335.1 | 3,143.8 | 9,682.3 | 9,229.9 | |
Costs and expenses | |||||
Cost of lease revenue | 56.5 | 30.9 | 126.2 | 99.4 | |
Selling, general and administrative expense | 298.1 | 250.6 | 919.7 | 835.1 | |
Research and development expense | 40.6 | 38.6 | 110 | 133.3 | |
Impairment, restructuring and other expenses (Note 16) | 140.3 | 9.7 | 166 | 32.6 | |
Separation costs (Note 2) | 9.4 | 0 | 9.4 | 0 | |
Merger transaction and integration costs | 6.2 | 6.3 | 31.2 | 20.9 | |
Total costs and expenses | 3,221 | 2,863.7 | 9,119.8 | 8,527.2 | |
Other income (expense), net | (57.7) | 10.4 | (156.5) | (12.6) | |
Income from equity affiliates (Note 11) | 25.9 | 16.4 | 54 | 70.6 | |
Income before net interest expense and income taxes | 82.3 | 306.9 | 460 | 760.7 | |
Net interest expense | (116.5) | (106) | (345.3) | (244.3) | |
Income (loss) before income taxes | [1] | (34.2) | 200.9 | 114.7 | 516.4 |
Provision for income taxes (Note 18) | 81.1 | 66.7 | 96.5 | 180.7 | |
Net income (loss) | (115.3) | 134.2 | 18.2 | 335.7 | |
Net (income) loss attributable to noncontrolling interests | (3.8) | 2.7 | (19.4) | 2 | |
Net income (loss) attributable to TechnipFMC plc | $ (119.1) | $ 136.9 | $ (1.2) | $ 337.7 | |
Earnings (loss) per share attributable to TechnipFMC plc (Note 8) | |||||
Basic (usd per share) | $ (0.27) | $ 0.30 | $ 0.73 | ||
Diluted (usd per share) | $ (0.27) | $ 0.30 | $ 0 | $ 0.73 | |
Weighted average shares outstanding (Note 8) | |||||
Basic (in shares) | 446.9 | 454.5 | 448.6 | 460 | |
Diluted (in shares) | 446.9 | 459 | 448.6 | 464 | |
Services | |||||
Revenue: | |||||
Revenue | $ 2,409.6 | $ 2,276.9 | $ 7,009.5 | $ 6,616.9 | |
Costs and expenses | |||||
Cost of goods and services sold | 1,926 | 1,860.2 | 5,520.1 | 5,488.4 | |
Products | |||||
Revenue: | |||||
Revenue | 839.8 | 806.2 | 2,471.9 | 2,449.6 | |
Costs and expenses | |||||
Cost of goods and services sold | $ 743.9 | $ 667.4 | $ 2,237.2 | $ 1,917.5 | |
[1] | Includes amounts attributable to noncontrolling interests. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Net income (loss) | $ (115.3) | $ 134.2 | $ 18.2 | $ 335.7 | |
Foreign currency translation adjustments | |||||
Foreign currency translation adjustments(a) | [1] | (42.5) | (142) | (43.8) | (282.1) |
Net gains (losses) on hedging instruments | |||||
Net gain (losses) arising during the period | (37.3) | 11.2 | (32.1) | (21) | |
Reclassification adjustment for net losses included in net income | (17.1) | (3.8) | (10.7) | (7.2) | |
Net gains (losses) on hedging instruments(b) | [2] | (54.4) | 7.4 | (42.8) | (28.2) |
Pension and other post-retirement benefits: | |||||
Net gains arising during the period | 0.4 | 0.3 | 1.4 | 0.3 | |
Reclassification adjustment for amortization of prior service cost included in net income | 0.9 | 0.3 | 2.3 | 0.6 | |
Net pension and other postretirement benefits(c) | [3] | 1.3 | 0.6 | 3.7 | 0.9 |
Other comprehensive losses, net of tax | (95.6) | (134) | (82.9) | (309.4) | |
Comprehensive income (loss) | (210.9) | 0.2 | (64.7) | 26.3 | |
Comprehensive (income) loss attributable to noncontrolling interest | 0.6 | 2.9 | (16.3) | 1.2 | |
Comprehensive income (loss) attributable to TechnipFMC plc | (210.3) | 3.1 | (81) | 27.5 | |
Foreign currency translation adjustments, tax (expense) benefit | 7.9 | 0 | 7.9 | (0.5) | |
Net gains (losses) on hedging instruments, tax (expense) benefit | 14.4 | (4.1) | 14.1 | 4.8 | |
Net pensions and other post-retirement benefits, tax (expense) benefit | $ (0.2) | $ (0.3) | $ 0.4 | $ (0.5) | |
[1] | Net of income tax (expense) benefit of $7.9 and nil for the three months ended September 30, 2019 and 2018 , respectively, and $7.9 and $(0.5) for the nine months ended September 30, 2019 and 2018 , respectively. | ||||
[2] | Net of income tax (expense) benefit of $14.4 and $(4.1) for the three months ended September 30, 2019 and 2018 , respectively. and $14.1 and $4.8 for the nine months ended September 30, 2019 and 2018 , respectively. | ||||
[3] | Net of income tax (expense) benefit of $(0.2) and $(0.3) for the three months ended September 30, 2019 and 2018 , respectively, and $0.4 and $(0.5) for the nine months ended September 30, 2019 and 2018 , respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Foreign currency translation adjustments, tax (expense) benefit | $ 7.9 | $ 0 | $ 7.9 | $ (0.5) |
Net gains (losses) on hedging instruments, tax (expense) benefit | 14.4 | (4.1) | 14.1 | 4.8 |
Net pensions and other post-retirement benefits, tax (expense) benefit | $ (0.2) | $ (0.3) | $ 0.4 | $ (0.5) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 4,504.4 | $ 5,540 |
Trade receivables, net of allowances of $109.7 in 2019 and $119.6 in 2018 | 2,150 | 2,469.7 |
Contract assets | 1,503 | 1,295 |
Inventories, net (Note 9) | 1,411.9 | 1,251.2 |
Derivative financial instruments (Note 19) | 106.2 | 95.7 |
Income taxes receivable | 340.2 | 284.3 |
Advances paid to suppliers | 233.5 | 189.7 |
Other current assets (Note 10) | 744.2 | 655.6 |
Total current assets | 10,993.4 | 11,781.2 |
Investments in equity affiliates | 433.3 | 394.5 |
Property, plant and equipment, net of accumulated depreciation of $2,054.0 in 2019 and $2,068.5 in 2018 | 3,092 | 3,259.8 |
Operating lease right-of-use assets (Note 5) | 904.5 | 0 |
Goodwill | 7,577.3 | 7,607.6 |
Intangible assets, net of accumulated amortization of $728.3 in 2019 and $658.1 in 2018 | 1,105.6 | 1,176.7 |
Deferred income taxes | 333.7 | 232.4 |
Derivative financial instruments (Note 19) | 46.1 | 18.3 |
Other assets | 293.8 | 314 |
Total assets | 24,779.7 | 24,784.5 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt (Note 13) | 299.4 | 67.4 |
Operating lease liabilities (Note 5) | 224.3 | 0 |
Accounts payable, trade | 2,556.4 | 2,600.3 |
Contract liabilities | 4,122.5 | 4,085.1 |
Accrued payroll | 402.1 | 394.7 |
Derivative financial instruments (Note 19) | 226.3 | 138.4 |
Income taxes payable | 94 | 81.9 |
Other current liabilities (Note 10) | 1,471 | 1,771.6 |
Total current liabilities | 9,396 | 9,139.4 |
Long-term debt, less current portion (Note 13) | 3,608.8 | 4,124.3 |
Operating lease liabilities (Note 5) | 743.4 | 0 |
Deferred income taxes | 172.6 | 209.2 |
Accrued pension and other post-retirement benefits, less current portion | 272.3 | 298.9 |
Derivative financial instruments (Note 19) | 108 | 44.9 |
Other liabilities | 316.3 | 540.4 |
Total liabilities | 14,617.4 | 14,357.1 |
Commitments and contingent liabilities (Note 17) | ||
Redeemable noncontrolling interest (Note 20) | 38.5 | 38.5 |
Stockholders’ equity (Note 14) | ||
Ordinary shares, $1.00 par value; 618.3 shares and 618.3 shares authorized in 2019 and 2018, respectively; 447.1 shares and 450.5 shares issued and outstanding in 2019 and 2018, respectively; 4.0 and 14.8 shares canceled in 2019 and 2018, respectively | 447.1 | 450.5 |
Ordinary shares held in employee benefit trust, at cost; nil and 0.1 shares in 2019 and 2018, respectively | 0 | (2.4) |
Capital in excess of par value of ordinary shares | 10,169.7 | 10,197 |
Retained earnings | 901.6 | 1,072.2 |
Accumulated other comprehensive loss | (1,439.5) | (1,359.7) |
Total TechnipFMC plc stockholders’ equity | 10,078.9 | 10,357.6 |
Noncontrolling interests | 44.9 | 31.3 |
Total equity | 10,123.8 | 10,388.9 |
Total liabilities and equity | $ 24,779.7 | $ 24,784.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 109.7 | $ 119.6 |
Property, plant and equipment, accumulated depreciation | 2,054 | 2,068.5 |
Intangible assets, accumulated amortization | $ 728.3 | $ 658.1 |
Ordinary shares, par value (in dollars) | $ 1 | $ 1 |
Ordinary shares, shares authorized (in shares) | 618.3 | 618.3 |
Ordinary shares, shares issued (in shares) | 447.1 | 450.5 |
Ordinary shares, shares outstanding (in shares) | 447.1 | 450.5 |
Canceled shares (in shares) | 4 | 14.8 |
Ordinary shares, held in employee benefit trust (in shares) | 0 | 0.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash provided (required) by operating activities | ||
Net income | $ 18.2 | $ 335.7 |
Adjustments to reconcile net income to cash provided (required) by operating activities | ||
Depreciation | 282.5 | 276.3 |
Amortization | 96 | 136.2 |
Impairments | 127.5 | 14.1 |
Employee benefit plan and share-based compensation costs | 54.2 | 27.1 |
Deferred income tax provision (benefit), net | (122.6) | (44.6) |
Unrealized loss on derivative instruments and foreign exchange | 108.2 | 19 |
Income from equity affiliates, net of dividends received | (49.6) | (67.3) |
Other | 307.6 | 58.9 |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Trade receivables, net and contract assets | (23) | (25.9) |
Inventories, net | (190.6) | (259.6) |
Accounts payable, trade | 19.4 | (938.2) |
Contract liabilities | 124.8 | (18.6) |
Income taxes payable (receivable), net | (45.3) | (91.8) |
Other current assets and liabilities, net | (431.1) | 416.6 |
Other noncurrent assets and liabilities, net | 13.2 | (182.6) |
Cash provided (required) by operating activities | 289.4 | (344.7) |
Cash provided (required) by investing activities | ||
Capital expenditures | (368.4) | (255.2) |
Payment to acquire debt securities | (59.7) | 0 |
Proceeds from sale of debt securities | 18.9 | 0 |
Acquisitions, net of cash acquired | 0 | (103.4) |
Cash divested from deconsolidation | 0 | (7.5) |
Proceeds from sale of assets | 5.6 | 7.9 |
Proceeds from repayment of advance to joint venture | 46.4 | |
Cash required by investing activities | (357.2) | (358.2) |
Cash required by financing activities | ||
Net decrease in short-term debt | (28.5) | (29.5) |
Net (decrease) increase in commercial paper | (255.5) | 309.3 |
Proceeds from issuance of long-term debt | 96.2 | 2.5 |
Purchase of ordinary shares | (92.7) | (384.2) |
Dividends paid | (174.7) | (179.2) |
Settlements of mandatorily redeemable financial liability | (443.7) | (124.2) |
Other | 0 | 2.3 |
Cash required by financing activities | (898.9) | (403) |
Effect of changes in foreign exchange rates on cash and cash equivalents | (68.9) | (78.2) |
Decrease in cash and cash equivalents | (1,035.6) | (1,184.1) |
Cash and cash equivalents, beginning of period | 5,540 | 6,737.4 |
Cash and cash equivalents, end of period | $ 4,504.4 | $ 5,553.3 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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) | Non-controlling Interest |
Beginning balance at Dec. 31, 2017 | $ 13,367.4 | $ 465.1 | $ (4.8) | $ 10,483.3 | $ 3,406 | $ (1,003.7) | $ 21.5 |
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of accounting standards | (91.4) | (91.5) | 0.1 | ||||
Net income (loss) | 335.7 | 337.7 | (2) | ||||
Other comprehensive loss | (309.4) | (310.2) | 0.8 | ||||
Issuance of ordinary shares | 0.2 | 0.1 | 0.1 | ||||
Cancellation of treasury shares | (384.2) | (12.3) | (278) | (93.9) | |||
Net sales of ordinary shares for employee benefit trust | 2.4 | 2.4 | |||||
Cash dividends declared ($0.13 per share) | (179.2) | (179.2) | |||||
Share-based compensation | 41.7 | 41.7 | |||||
Other | 0.9 | (0.9) | |||||
Ending balance at Sep. 30, 2018 | 12,782.3 | 452.9 | (2.4) | 10,247.1 | 3,379.1 | (1,313.9) | 19.5 |
Beginning balance at Jun. 30, 2018 | 12,965.9 | 457.5 | (3.9) | 10,335.5 | 3,334.5 | (1,180.1) | 22.4 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 134.2 | 136.9 | (2.7) | ||||
Other comprehensive loss | (134) | (133.8) | (0.2) | ||||
Cancellation of treasury shares | (142.2) | (4.6) | (104.3) | (33.3) | |||
Net sales of ordinary shares for employee benefit trust | 1.5 | 1.5 | |||||
Cash dividends declared ($0.13 per share) | (59) | (59) | |||||
Share-based compensation | 15.9 | 15.9 | |||||
Ending balance at Sep. 30, 2018 | 12,782.3 | 452.9 | (2.4) | 10,247.1 | 3,379.1 | (1,313.9) | 19.5 |
Beginning balance at Dec. 31, 2018 | 10,388.9 | 450.5 | (2.4) | 10,197 | 1,072.2 | (1,359.7) | 31.3 |
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of accounting standards | 1.8 | 1.8 | |||||
Net income (loss) | 18.2 | 19.4 | |||||
Other comprehensive loss | (82.9) | (79.8) | (3.1) | ||||
Issuance of ordinary shares | 0.6 | 0.6 | |||||
Cancellation of treasury shares | (92.7) | (4) | (88.7) | ||||
Net sales of ordinary shares for employee benefit trust | 2.4 | 2.4 | |||||
Cash dividends declared ($0.13 per share) | (174.7) | (174.7) | |||||
Share-based compensation | 61.4 | 61.4 | |||||
Other | (0.8) | 3.5 | (2.7) | ||||
Ending balance at Sep. 30, 2019 | 10,123.8 | 447.1 | 0 | 10,169.7 | 901.6 | (1,439.5) | 44.9 |
Beginning balance at Jun. 30, 2019 | 10,380.4 | 446.5 | 0 | 10,152.4 | 1,084 | (1,348.3) | 45.8 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (115.3) | (119.1) | 3.8 | ||||
Other comprehensive loss | (95.6) | (91.2) | (4.4) | ||||
Issuance of ordinary shares | 0.6 | 0.6 | |||||
Cancellation of treasury shares | (2.6) | (2.6) | |||||
Cash dividends declared ($0.13 per share) | (58.1) | (58.1) | |||||
Share-based compensation | 19.9 | 19.9 | |||||
Other | (5.5) | (5.2) | (0.3) | ||||
Ending balance at Sep. 30, 2019 | $ 10,123.8 | $ 447.1 | $ 0 | $ 10,169.7 | $ 901.6 | $ (1,439.5) | $ 44.9 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Dividends [Abstract] | ||||
Cash dividends declared per share | $ 0.13 | $ 0.13 | $ 0.39 | $ 0.39 |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis Of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC” or the “Company”) 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. These unaudited condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2018 . 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, 2019 . Reclassifications – Certain prior-year amounts have been reclassified to conform to the current year’s presentation. Revision of Prior Period Financial Statements - In connection with the preparation of the condensed consolidated financial statements for the three and nine months ended September 30, 2019 , we identified errors in our previously issued financial statements related to the classification between service revenue, product revenue and the related cost of sales. The correction had no effect on the reported total revenues, consolidated net income (loss) or stockholders’ equity for any periods previously presented. In accordance with Staff Accounting Bulletin (“SAB ”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required. In accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections , we corrected the errors for the three and nine months ended September 30, 2018 by revising the condensed consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. The effects of the revision on our condensed consolidated statements of income for the three and nine months ended September 30, 2018 are as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 (In millions, except per share data) As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Revenue Service revenue $ 2,487.9 $ (211.0 ) $ 2,276.9 $ 7,159.2 $ (542.3 ) $ 6,616.9 Product revenue 595.2 211.0 806.2 1,907.3 542.3 2,449.6 Total revenue 3,143.8 — 3,143.8 9,229.9 — 9,229.9 Costs and expenses Cost of service revenue 2,046.6 (186.4 ) 1,860.2 5,846.0 (357.6 ) 5,488.4 Cost of product revenue 481.0 186.4 667.4 1,559.9 357.6 1,917.5 Total costs and expenses 2,863.7 — 2,863.7 8,527.2 — 8,527.2 Net income (loss) attributable to TechnipFMC plc $ 136.9 $ — $ 136.9 $ 337.7 $ — $ 337.7 Earnings (loss) per share attributable to TechnipFMC plc (Note 8) Basic $ 0.30 $ — $ 0.30 $ 0.73 $ — $ 0.73 Diluted $ 0.30 $ — $ 0.30 $ 0.73 $ — $ 0.73 Weighted average shares outstanding (Note 8) Basic 454.5 — 454.5 460.0 — 460.0 Diluted 459.0 — 459.0 464.0 — 464.0 Leases – The majority of our leases are operating leases. We account for leases in accordance with ASC Topic 842, Leases, which we adopted on January 1, 2019 using the modified retrospective method. Refer to Note 5 for further discussion of the adoption, including the impact on our 2019 financial statements. |
Planned spin-off transaction
Planned spin-off transaction | 9 Months Ended |
Sep. 30, 2019 | |
Spin-off [Abstract] | |
Spin-off [Text Block] | PLANNED SPIN-OFF TRANSACTION On August 26, 2019, we announced that our Board of Directors had unanimously approved a plan to separate our Onshore/Offshore segment, loading systems and process automation businesses into an independent, publicly traded company (“Technip Energies”). The transaction is expected to be tax free to certain shareholders where permissible, including the U.S. We expect to complete the transaction in the first half of 2020, subject to general market conditions, regulatory approvals, consultation of employee representatives, where applicable, and final approval from our Board of Directors. Upon completion of the separation, the historical results of Technip Energies will be presented as discontinued operations as the separation represents a strategic shift in operations with a major impact to our consolidated financial statements. We have incurred $9.4 million of separation costs associated with the planned transaction for the three months ended September 30, 2019. |
Business Combination Transactio
Business Combination Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | BUSINESS COMBINATION TRANSACTIONS In February 2018, we signed an agreement with the Island Offshore Group to acquire a 51% stake in Island Offshore’s wholly-owned subsidiary, Island Offshore Subsea AS. Island Offshore Subsea AS provides riserless light well intervention (“RLWI”) project management and engineering services for plug and abandonment, riserless coiled tubing, and well completion operations. In connection with the acquisition of the controlling interest, TechnipFMC and Island Offshore entered into a strategic cooperation agreement to deliver RLWI services on a global basis, which also include TechnipFMC’s RLWI capabilities. Island Offshore Subsea AS has been rebranded to TIOS and is now the operating unit for TechnipFMC’s RLWI activities worldwide. The acquisition was completed for total cash consideration of $42.4 million . As a result of the acquisition, we recorded redeemable financial liability equal to the fair value of a written put option and we increased goodwill by $85.0 million . On July 18, 2018, we entered into a share sale and purchase agreement with POC Holding Oy to sell 100% of the outstanding shares of Technip Offshore Finland Oy. The total gain before tax recognized in the third quarter of 2018 was $27.8 million . Additional acquisitions during the nine months ended September 30, 2018 totaled $61.0 million in consideration paid. There were no acquisitions or disposals during the nine months ended September 30, 2019 . |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards under GAAP Effective January 1, 2019, we adopted (1) Accounting Standards Update (“ASU”) No. “2016-02, Leases (Topic 842).” , (2) ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” (3) ASU 2018-10, “Codification Improvements to Topic 842, Lease.” , (4) ASU 2018-20, “Narrow-scope Improvements for Lessors.” , (5) ASU 2018-11, “Leases (Topic 842): Targeted Improvements.” , (6) ASU No. 2019-01, “Leases (Topic 842) —Codification Improvements.” . These updates require lessees to recognize a right-of-use (“ROU”) asset and a lease liability for virtually all of their leases. See Note 5 to our condensed consolidated financial statements of this Quarterly Report for more information. Effective January 1, 2019, we adopted ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This update improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required to be adopted prospectively. The adoption of this update did not have an impact on our consolidated financial statements. Effective January 1, 2019, we adopted ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI).” This update provides an option to reclassify stranded tax effects with AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The ASU requires financial statement disclosures that indicate a description of the accounting policy for releasing income tax effects from AOCI; whether there is an election to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act and information about the other income tax effects are reclassified. These amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The adoption of this update did not have an impact on our consolidated financial statements. Effective January 1, 2019, we adopted ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This update expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update specify that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. The amendments in this update also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606. The adoption of this update did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards under GAAP In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This update introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The updated guidance applies to (1) loans, accounts receivable, trade receivables and other financial assets measured at amortized cost, (2) loan commitments and other off-balance sheet credit exposures, (iii) debt securities and other financial assets measured at fair value through other comprehensive income and (iv) beneficial interests in securitized financial assets. In May 2019, the FASB issued a new update ASU No.2019-05, that eases transition to the credit losses standard by providing the option to measure certain types of assets at fair value, allowing an option for preparers to irrevocably elect the fair value option for eligible financial assets measured at amortized cost basis on an instrument-by-instrument basis. The amendments in this ASU are effective for us on January 1, 2020 and are required to be adopted on a modified retrospective basis. Early adoption is not permitted. We do not anticipate a material impact to our consolidated financial statements as a result of the adoption of this ASU. In November 2018, the FASB also issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses. ” The update amends the transition requirements and scope of the credit losses standard issued in 2016. This update clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leases standard. The amendments in this ASU are effective for us on January 1, 2020 and are required to be adopted on a modified retrospective basis. Early adoption is not permitted. We do not anticipate a material impact to our consolidated financial statements as a result of the adoption of this ASU. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the disclosure requirement on fair value measurements in Topic 820. The amendments in this ASU are effective for us January 1, 2020. Early adoption is permitted. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively. The adoption of this update concerns presentation and disclosure only as it relates to our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other post-retirement plans. The amendments in this ASU are effective for us January 1, 2021. Early adoption is permitted. The amendments in this update are required to be adopted retrospectively. We are currently evaluating the impact of this ASU on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” This update requires that the implementation costs incurred in a cloud computing arrangement that is a service contract are deferred if they would be capitalized based on the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this ASU are effective for us January 1, 2020. Early adoption is permitted. The amendments in this update are required to be adopted either retrospectively or prospectively. We do not anticipate a material impact to our consolidated financial statements as a result of the adoption of this ASU. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808) -Clarifying the Interaction between Topic 808 and Topic 606.” This update clarifies the interaction between the guidance for certain collaborative arrangements and the Revenue Recognition financial accounting and reporting standard. The amendments in this ASU are effective for us January 1, 2020. Early adoption is permitted. The amendments in this update are required to be adopted retrospectively to the date of initial application of Topic 606. An entity should recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings of the later of the earliest annual period presented and the annual period that includes the date of the entity’s initial application of Topic 606. We do not anticipate a material impact to our consolidated financial statements as a result of the adoption of this ASU. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments .” The update clarifies and improves areas of guidance related to the recently issued standards including (1) ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities.” , (2) ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” , and (3) ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” Early adoption is permitted. The amendments in this update to ASU No. 2016-01 and No. 2016-13 are required to be adopted on a modified retrospective basis. The amendments in this update to ASU No. 2017-12 are required to be adopted either retrospectively or prospectively. This new update will be effective on January 1, 2020. We do not anticipate a material impact to our consolidated financial statements as a result of the adoption of this ASU. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use (“ROU”) asset and a lease liability for all outstanding leases excluding short-term leases. The liability is equal to the present value of the remaining lease payments. The ROU asset is based on the liability, subject to certain adjustments (e.g., initial direct costs, payments made by the lessee prior to lease commencement and any lessor incentives). For income statement purposes, lessees are required to classify leases as either operating or finance leases. Operating leases result in straight-line expense while finance leases result in a front-loaded expense pattern. Lessor accounting is largely unchanged but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. Topic 842 was subsequently amended to provide practical expedient for transition and targeted improvements to the new lease standard. The FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements” to clarify certain transition disclosure requirements. The Company adopted the new lease standard as of January 1, 2019, using a modified retrospective transition method and applying the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings in the period of adoption. In our first annual period after adoption, the year ending December 31, 2019, the comparative periods will not be restated and will be presented under legacy lease accounting guidance in effect for those periods, Topic 840. The new standard provides a number of practical expedients specific to transition. We have elected the “package of practical expedients”, which permits us not to reassess (1) whether any expired or existing arrangements are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The new standard also provides practical expedients for an entity’s ongoing accounting, including a practical expedient which allows lessees and lessors to elect to not separate lease and non-lease components. We have elected the practical expedient available for lessees to not separate lease and non-lease components for all asset classes other than vessels, which typically include significant non-lease components. We have elected the practical expedient available for lessors to not separate lease and non-lease components for vessels. The Company also elected not to recognize right of use assets and lease liabilities on the balance sheet for short-term leases, which have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. Lease cost of short-term leases are recognized on a straight-line basis over the lease term and disclosed within our financial statements. We believe short-term lease commitments are not materially different than the short-term lease cost for the period. Adoption of the new lease accounting guidance had a material impact on our consolidated balance sheets but did not have a material impact on our consolidated income statements. We recognized on January 1, 2019, (1) a lease liability of approximately $1,189.6 million which represents the present value of the remaining lease payments, discounted using the Company’s applicable weighted average incremental borrowing rates, and (2) an ROU asset of approximately $1,115.5 million which represents the lease liability of $1,189.6 million adjusted for accrued and prepaid rent, lease incentives, and other balances. The impact was recorded as an adjustment to increase retained earnings by approximately $1.8 million . In connection with the adoption of the new lease standard, we corrected our balance sheet as of January 1, 2016 to include an additional $42.0 million of liabilities of which $5.0 million and $37.0 million was other current liabilities and other liabilities, respectively, with a corresponding decrease in retained earnings to reflect additional rent expense which was not historically recorded prior to fiscal 2016. Accordingly, the revised other current liabilities, other liabilities retained earnings balances as of January 1, 2016 were $1,044.4 million , $131.3 million , and $3,231.4 million , respectively. These historical errors are not material to any prior interim or annual financial statements. Lessee Arrangements We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. Substantially all our leases are classified as operating leases. We determine if an arrangement is a lease at inception by assessing whether an identified asset exists and if we have the right to control the use of the identified asset. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities (current), and Operating lease liabilities (non-current) on our consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term. With the exception of rare cases in which the implicit rate is readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Operating lease right-of-use assets also includes any lease prepayments made and excludes lease incentives we received from the lessor. Lease cost for lease payments is recognized on a straight-line basis over the lease term. Several of our leases provide for certain guarantees of residual value. We estimate and include in the determination of lease payments any amount probable of being owed under these residual value guarantees. At the date of adoption and September 30, 2019, we determined that there were no residual value guarantees which were probable of being owed. Our leases do not contain any material restrictive covenants. Lease terms within our lessee arrangements may include options to extend/renew or terminate the lease and/or purchase the underlying asset when it is reasonably certain that we will exercise that option. The Company applies a portfolio approach by asset class to determine lease term renewals. The leases within these portfolios are categorized by asset class and have initial lease terms that vary depending on the asset class. The renewal terms range from 60 days to 5 years for asset classes such as temporary residential housing, forklifts, vehicles, vessels, office and IT equipment, and tool rentals, and up to 15 years or more for commercial real estate. Short-term leases with an initial term of 12 months or less that do not include a purchase option are not recorded on the balance sheet. Lease costs for short-term leases are recognized on a straight-line basis over the lease term and amounts related to short-term leases are disclosed within our financial statements. The Company has variable lease payments, including adjustments to lease payments based on an index or rate (such as the Consumer Price Index), fair value adjustments to lease payments, and common area maintenance, real estate taxes, and insurance payments in triple-net real estate leases. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included when measuring consideration within our lease arrangements using the payments’ base rate or index. Variable payments that do not depend on an index or rate are recognized in profit or loss and are disclosed as ‘variable lease cost’ in the period they are incurred. We adopted the practical expedient to not separate lease and non-lease components for all asset classes except for vessels, which have significant non-lease components. The Company currently subleases certain of its leased real estate and vessels to third parties. It is expected that most subleases will be classified as operating leases by the sublessor under GAAP. The following table is a summary of the Company’s components of net lease cost for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (In millions) September 30, 2019 September 30, 2019 Operating lease cost including variable costs $ 90.0 $ 273.4 Short-term lease costs 4.1 19.0 Less: sublease income 2.5 6.5 Net lease cost $ 91.6 $ 285.9 Supplemental cash flow information related to leases for the nine months ended September 30, 2019 is as follows: Nine Months Ended (In millions) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 289.4 Right-of-use assets obtained in exchange for lease liabilities Operating leases 36.3 Supplemental balance sheet information related to leases as of September 30, 2019 is as follows: (In millions, except lease term and discount rate) September 30, 2019 Weighted average remaining lease term Operating leases 7.0 years Weighted average discount rate Operating leases 4.4 % The following table is a summary of the maturity of lease liabilities under operating leases as of September 30, 2019 : (in millions) Operating Leases 2019 $ 305.0 2020 230.2 2021 129.1 2022 101.2 2023 77.2 Thereafter 334.6 Total lease payments 1,177.3 Less: Imputed interest (a) 209.6 Total lease liabilities (b) $ 967.7 Note: For leases commencing prior to 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. (a) Calculated using the interest rate for each lease. (b) Includes the current portion of $224.3 million for operating leases. At December 31, 2018 , future minimum rental payments under noncancellable operating leases under ASC Topic 840 were: (In millions) 2019 $ 329.8 2020 286.1 2021 192.3 2022 123.8 2023 102.1 Thereafter 485.6 Total lease payment 1,519.7 Less income from sub-leases 25.6 Net minimum operating lease payments $ 1,494.1 As of September 30, 2019 , we have an additional operating lease for our future office building in Paris, France, that has not yet commenced for $236.2 million . This operating lease will commence in fiscal year 2021 with a lease term of 10 years. Lessor Arrangements We lease real estate including land, buildings and warehouses, machinery/equipment, and vessels from a lessor perspective. We determine if an arrangement is a lease at inception by assessing whether an identified asset exists and if the customer has the right to control the use of the identified asset. We use our implicit rate for our lessor arrangements. We have elected the practical expedient available for lessors to not separate lease and non-lease components for vessels. If the non-lease component is predominant in our contracts, we account for the contracts under the revenue recognition guidance in ASC 606. If the lease component is predominant in our contracts, we account for the contracts under the lease guidance in ASC 842 . We estimate the amount we expect to derive from the underlying asset following the end of the lease term based on remaining economic life. Our lessor arrangements generally do not include any residual value guarantees. We recognize lessee payments of lessor costs such as taxes and insurance on a net basis when the lessee pays those costs directly to a third party or when the amount paid by the lessee is not readily determinable. The following table is a summary of the Company’s components of lease revenue for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (In millions) September 30, 2019 September 30, 2019 Operating lease revenue including variable revenue $ 85.7 $ 200.9 The following table is a summary of the maturity analysis of the undiscounted cash flows to be received on an annual basis for each of the first five years, and a total of the amounts for the remaining years: (In millions) Operating Leases 2019 $ 6.2 2020 14.9 2021 17.5 2022 18.0 2023 2.5 Thereafter — Total undiscounted cash flows $ 59.1 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The majority of our revenue is from long-term contracts associated with designing and manufacturing products and systems and providing services to customers involved in exploration and production of crude oil and natural gas. Disaggregation of Revenue The Company disaggregates revenue by geographic location and contract types. The tables also include a reconciliation of the disaggregated revenue with the reportable segments. The following tables present products and services revenue by geography for each reportable segment for the three and nine months ended September 30, 2019 and 2018 : Reportable Segments Three Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea Onshore/ Surface Technologies Europe, Russia, Central Asia $ 390.8 $ 682.4 $ 55.5 $ 421.4 $ 831.5 $ 66.0 America 513.1 156.9 171.0 437.4 89.4 208.3 Asia Pacific 171.0 311.7 50.3 118.2 300.6 34.1 Africa 143.6 158.6 14.9 162.5 54.8 16.3 Middle East 81.2 286.7 61.7 38.8 256.2 47.6 Total products and services revenue $ 1,299.7 $ 1,596.3 $ 353.4 $ 1,178.3 $ 1,532.5 $ 372.3 Reportable Segments Nine Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea Onshore/ Surface Technologies Europe, Russia, Central Asia $ 1,250.0 $ 1,975.2 $ 171.3 $ 1,136.3 $ 2,537.9 $ 172.5 America 1,232.0 514.2 564.1 1,219.3 253.0 653.3 Asia Pacific 448.4 889.1 139.4 368.1 906.5 85.9 Africa 663.2 330.1 41.1 703.9 202.3 43.4 Middle East 352.0 727.8 183.5 89.1 548.6 146.4 Total products and services revenue $ 3,945.6 $ 4,436.4 $ 1,099.4 $ 3,516.7 $ 4,448.3 $ 1,101.5 The following tables represent revenue by contract type for each reportable segment for the three and nine months ended September 30, 2019 and 2018 : Reportable Segments Three Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea (b) Onshore/ Surface Technologies Services $ 743.8 $ 1,596.3 $ 69.5 $ 674.2 $ 1,532.5 $ 70.2 Products 555.9 — 283.9 504.1 — 302.1 Total products and services revenue 1,299.7 1,596.3 353.4 1,178.3 1,532.5 372.3 Lease (a) 42.5 — 43.2 30.8 — 29.9 Total revenue $ 1,342.2 $ 1,596.3 $ 396.6 $ 1,209.1 $ 1,532.5 $ 402.2 Reportable Segments Nine Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea (b) Onshore/ Surface Technologies Services $ 2,359.6 $ 4,436.4 $ 213.5 $ 1,983.6 $ 4,448.3 $ 185.0 Products 1,586.0 — 885.9 1,533.1 — 916.5 Total products and services revenue 3,945.6 4,436.4 1,099.4 3,516.7 4,448.3 1,101.5 Lease (a) 90.6 — 110.3 90.0 — 73.4 Total revenue $ 4,036.2 $ 4,436.4 $ 1,209.7 $ 3,606.7 $ 4,448.3 $ 1,174.9 (a) Represents revenue not subject to ASC Topic 606. See Note 5 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to lease revenue. (b) We revised the condensed consolidated statement of operations to correct the classification of service revenue and product revenue in the amount of $211.0 million and $542.3 million for the three and nine months ended September 30, 2018 , respectively. See Note 1 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the revision. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts (contract assets), and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) on the consolidated balance sheets. Contract Assets - Contract Assets, previously disclosed as costs and estimated earnings in excess of billings on uncompleted contracts, include unbilled amounts typically resulting from sales under long-term contracts when revenue is recognized over time and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Costs and estimated earnings in excess of billings on uncompleted contracts are generally classified as current. Contract Liabilities - We sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities. The following table provides information about net contract assets (liabilities) as of September 30, 2019 and December 31, 2018 : (In millions) September 30, December 31, $ change % change Contract assets $ 1,503.0 $ 1,295.0 $ 208.0 16.1 Contract (liabilities) (4,122.5 ) (4,085.1 ) (37.4 ) (0.9 ) Net contract assets (liabilities) $ (2,619.5 ) $ (2,790.1 ) $ 170.6 6.1 The increase in our contract assets from December 31, 2018 to September 30, 2019 was primarily due to the timing of milestones. The increase in our contract liabilities was primarily due to additional cash received, excluding amounts recognized as revenue during the period. In order to determine revenue recognized in the period from contract liabilities, we allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Revenue recognized for the three months ended September 30, 2019 and 2018 that were included in the contract liabilities balance at December 31, 2018 and 2017 was $503.6 million and $678.1 million , respectively, and $1,984.4 million and $2,115.8 million for the nine months ended September 30, 2019 and 2018 , respectively. In addition, revenue recognized for the three months ended September 30, 2019 and 2018 from our performance obligations satisfied in previous periods had a favorable impact of $281.7 million and an favorable impact of $182.5 million , respectively, and favorable impacts of $775.1 million and $489.2 million for the nine months ended September 30, 2019 and 2018 , respectively. This primarily relates to changes in the estimated costs to complete certain projects. Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations Remaining unsatisfied performance obligations (“RUPO” or “order backlog”) represent the transaction price for products and services for which we have a material right but work has not been performed. Transaction price of the order backlog includes the base transaction price, variable consideration, and changes in transaction price. The order backlog table does not include contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The transaction price of order backlog related to unfilled, confirmed customer orders is estimated at each reporting date. As of September 30, 2019 , the aggregate amount of the transaction price allocated to order backlog was $24,115.3 million . The Company expects to recognize revenue on approximately 15.6% of the order backlog through 2019 and 84.4% thereafter. The following table details the order backlog for each business segment as of September 30, 2019 : (In millions) 2019 2020 Thereafter Subsea $ 1,425.6 $ 4,251.0 $ 2,979.2 Onshore/Offshore 2,084.5 5,254.4 7,691.9 Surface Technologies 257.2 171.5 — Total remaining unsatisfied performance obligations $ 3,767.3 $ 9,676.9 $ 10,671.1 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segments | 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 Executive Officer, as our chief operating decision maker, reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. We report the results of operations in the following segments: • Subsea - designs and manufactures products and systems, performs engineering, procurement and project management, and provides services used by oil and gas companies involved in offshore exploration and production of crude oil and natural gas. • Onshore/Offshore - designs and builds onshore facilities related to the production, treatment, transformation, and transportation of oil and gas and designs, manufactures, and installs fixed and floating platforms for the production and processing of oil and gas reserves. • Surface Technologies - designs and manufactures products and systems and provides services used by oil and gas companies involved in land and shallow water exploration and production of crude oil and natural gas; designs, manufactures, and supplies technologically advanced high-pressure valves and fittings for oilfield service companies; and also provides flowback and well testing services. Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in computing segment operating profit. 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 Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Segment revenue Subsea $ 1,342.2 $ 1,209.1 $ 4,036.2 $ 3,606.7 Onshore/Offshore 1,596.3 1,532.5 4,436.4 4,448.3 Surface Technologies 396.6 402.2 1,209.7 1,174.9 Total revenue $ 3,335.1 $ 3,143.8 $ 9,682.3 $ 9,229.9 Segment operating profit (loss) Subsea $ (79.6 ) $ 79.7 $ 65.0 $ 210.0 Onshore/Offshore 284.6 243.4 714.3 617.6 Surface Technologies 6.1 51.9 42.1 134.0 Total segment operating profit $ 211.1 $ 375.0 $ 821.4 $ 961.6 Corporate items Corporate expense (a) $ (128.8 ) $ (68.1 ) $ (361.4 ) $ (200.9 ) Net interest expense (116.5 ) (106.0 ) (345.3 ) (244.3 ) Total corporate items (245.3 ) (174.1 ) (706.7 ) (445.2 ) Income (loss) before income taxes (b) $ (34.2 ) $ 200.9 $ 114.7 $ 516.4 (a) Corporate expense primarily includes corporate staff expenses, legal reserve, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, merger transaction, integration expenses, and separation expenses. (b) Includes amounts attributable to noncontrolling interests. Segment assets were as follows: (In millions) September 30, December 31, 2018 Segment assets Subsea $ 11,817.0 $ 11,037.8 Onshore/Offshore 4,231.4 4,355.2 Surface Technologies 2,992.5 2,825.6 Intercompany eliminations (30.6 ) (26.4 ) Total segment assets 19,010.3 18,192.2 Corporate (a) 5,769.4 6,592.3 Total assets $ 24,779.7 $ 24,784.5 (a) Corporate includes cash, deferred income tax balances, legal provisions, property, plant and equipment not associated with a specific segment, pension assets, the fair value of derivative financial instruments, and LIFO adjustments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share data) 2019 2018 2019 2018 Net income (loss) attributable to TechnipFMC plc $ (119.1 ) $ 136.9 $ (1.2 ) $ 337.7 Weighted average number of shares outstanding 446.9 454.5 448.6 460.0 Dilutive effect of restricted stock units — 1.2 — 1.0 Dilutive effect of stock options — 0.1 — 0.1 Dilutive effect of performance shares — 3.2 — 2.9 Total shares and dilutive securities 446.9 459.0 448.6 464.0 Basic earnings (loss) per share attributable to TechnipFMC plc $ (0.27 ) $ 0.30 $ — $ 0.73 Diluted earnings (loss) per share attributable to TechnipFMC plc $ (0.27 ) $ 0.30 $ — $ 0.73 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (In millions) September 30, December 31, Raw materials $ 366.9 $ 366.4 Work in process 250.5 146.4 Finished goods 794.5 738.4 Inventories, net $ 1,411.9 $ 1,251.2 |
Other Current Assets & Other Cu
Other Current Assets & Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Current Assets and Other Current Liabilities [Abstract] | |
Other Current Assets & Other Current Liabilities | OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES Other current assets consisted of the following: (In millions) September 30, December 31, Value-added tax receivables $ 389.5 $ 305.8 Prepaid expenses 96.9 91.3 Other taxes receivables 87.4 85.0 Sundry receivables 81.5 87.0 Asset held for sale 17.6 9.6 Other 71.3 76.9 Total other current assets $ 744.2 $ 655.6 Other current liabilities consisted of the following: (In millions) September 30, December 31, Warranty accruals and project contingencies 292.4 418.2 Value added tax and other taxes payable 219.8 214.3 Legal provisions 214.0 418.2 Redeemable financial liability 196.3 173.0 Provisions 103.5 135.5 Social security liability 101.1 112.3 Compensation accrual 71.7 87.3 Liabilities held for sale 21.0 16.2 Current portion of accrued pension and other post-retirement benefits 12.8 14.0 Other accrued liabilities 238.4 182.6 Total other current liabilities $ 1,471.0 $ 1,771.6 |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS Our income from equity affiliates included in each of our reporting segments was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Subsea $ 23.3 $ 15.7 $ 49.5 $ 52.0 Onshore/Offshore 2.6 0.7 4.5 18.6 Income from equity affiliates $ 25.9 $ 16.4 $ 54.0 $ 70.6 Summarized financial information for our equity method investments is presented below: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Revenue $ 624.2 $ 250.7 $ 1,693.4 $ 792.8 Gross profit 76.6 51.7 167.4 163.0 Net income (loss) 46.1 34.2 (60.9 ) 97.0 (in millions) September 30, December 31, 2018 Current assets $ 1,498.2 $ 1,217.0 Noncurrent assets 4,364.8 4,026.7 Current liabilities 1,740.7 1,511.9 Noncurrent liabilities 1,475.9 1,177.2 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Receivables, payables, revenues, and expenses which are included in our consolidated financial statements for all transactions with related parties, defined as entities related to our directors and main shareholders as well as the partners of our consolidated joint ventures, were as follows: Trade receivables consisted of receivables due from following related parties: (In millions) September 30, 2019 December 31, 2018 TP JGC Coral France SNC $ 38.9 $ 31.6 TTSJV WLL 27.4 — Technip Odebrecht PLSV CV 11.3 10.9 Anadarko Petroleum Company 4.5 4.9 Others 11.2 14.3 Total trade receivables $ 93.3 $ 61.7 TP JGC Coral France SNC, TTSJV W.L.L. and Technip Odebrecht PLSV CV are equity method affiliates. A member of our Board of Directors (the “Director”) served on the Board of Directors of Anadarko Petroleum Company (“Anadarko”) until August 2019. In August 2019, Anadarko was acquired by Occidental Petroleum Corporation (“Occidental”). As a result, the Director no longer serves as a member of the Board of Directors of Anadarko. The Director is not an officer or director of Occidental. Trade payables consisted of payables due to following related parties: (In millions) September 30, 2019 December 31, 2018 Chiyoda $ 25.3 $ 70.0 JGC Corporation 15.0 69.5 IFP Energies nouvelles 1.2 2.4 Dofcon Navegacao 0.2 2.5 Anadarko Petroleum Company 0.1 0.7 Magma Global Limited — 0.6 Others 5.0 2.9 Total trade payables $ 46.8 $ 148.6 Dofcon Navegacao and Magma Global Limited are equity affiliates. JGC Corporation and Chiyoda are joint venture partners on our Yamal project. A member of our Board of Directors is an executive officer of IFP Energies nouvelles. Additionally, our note receivables balance was $79.0 million and $130.0 million at September 30, 2019 and December 31, 2018 , respectively. The balance includes $76.3 million and $119.9 million with Dofcon Brasil AS at September 30, 2019 and December 31, 2018 , respectively. Dofcon Brasil AS is a variable interest entity and accounted for as an equity method affiliate. These are included in other noncurrent assets on our consolidated balance sheets. Revenue consisted of amount from following related parties: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 TTSJV W.L.L. $ 27.9 $ — $ 107.4 $ — TP JGC Coral France SNC 17.7 26.4 95.4 87.8 Anadarko Petroleum Company 26.3 33.6 67.1 109.1 Techdof Brasil AS 5.2 — 8.5 — Dofcon Navegacao 1.4 — 7.1 — JGC Corporation 0.4 — 6.4 — Technip Odebrecht PLSV CV 2.1 — 6.1 — Storengy 3.7 — 5.0 — Altus Intervention 3.9 — 3.9 — Others 3.7 12.8 11.6 28.7 Total revenue $ 92.3 $ 72.8 $ 318.5 $ 225.6 Expenses consisted of amount to following related parties: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Chiyoda $ 7.7 $ 3.2 $ 25.3 $ 14.3 JGC Corporation 1.0 19.6 19.9 39.2 Serimax Holdings SAS — — 17.7 — Arkema S.A. 6.4 — 16.2 — Magma Global Limited — — 3.2 — IFP Energy nouvelles 1.8 0.8 2.8 3.1 Creowave OY 2.0 — 2.0 — Amaja Oil 1.9 — 1.9 — Jumbo Shipping — — 1.8 — Altus Intervention 1.4 — 1.4 — Competentia 0.8 — 1.3 — Others 6.8 6.5 14.1 10.2 Total expenses $ 29.8 $ 30.1 $ 107.6 $ 66.8 Serimax Holdings SAS is an equity affiliate. Amaja Oil is a joint venture partner. We own a minority interest in a Creowave OY joint venture. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt consisted of the following: (In millions) September 30, December 31, Revolving credit facility $ — $ — Bilateral credit facilities — — Commercial paper 1,639.7 1,916.1 Synthetic bonds due 2021 476.1 490.9 3.45% Senior Notes due 2022 500.0 500.0 5.00% 2010 Private placement notes due 2020 218.2 229.0 3.40% 2012 Private placement notes due 2022 163.6 171.8 3.15% 2013 Private placement notes due 2023 141.8 148.9 3.15% 2013 Private placement notes due 2023 136.4 143.1 4.00% 2012 Private placement notes due 2027 81.8 85.9 4.00% 2012 Private placement notes due 2032 109.1 114.5 3.75% 2013 Private placement notes due 2033 109.1 114.5 Bank borrowings 312.1 265.2 Other 29.6 23.2 Unamortized issuing fees (9.3 ) (11.4 ) Total debt 3,908.2 4,191.7 Less: current borrowings 299.4 67.4 Long-term debt $ 3,608.8 $ 4,124.3 Bilateral credit facilities - We have access to a €100.0 million bilateral credit facility expiring in May 2021. Two bilateral credit facilities of €80.0 million each and a bilateral credit facility of €60.0 million expired in May and June 2019, respectively. The bilateral credit facility contains usual and customary covenants, representations and warranties and events of default for credit facilities of this type. Commercial paper - Under our commercial paper program, we have the ability to access $1.5 billion and €1.0 billion of short-term financing through our commercial paper dealers, subject to the limit of unused capacity of our revolving facility agreement. As we have both the ability and intent to refinance these obligations on a long-term basis, our commercial paper borrowings were classified as long-term debt in the consolidated balance sheets as of September 30, 2019 and December 31, 2018 . Commercial paper borrowings are issued at market interest rates. As of September 30, 2019 , our commercial paper borrowings had a weighted average interest rate of 2.52% on the U.S. dollar denominated borrowings and (0.26)% on the Euro denominated borrowings. Bank borrowings - In January 2019, we executed a sale-leaseback transaction to finance the purchase of a deepwater dive support vessel, Deep Discoverer (the “Vessel”) for the full transaction price of $116.8 million . The sale-leaseback agreement (“Charter”) was entered into with a French joint-stock company, owned by Credit Industrial et Commercial (“CIC”) which was formed for the sole purpose to purchase and act as the lessor of the Vessel. It is a variable interest entity, which is fully consolidated in our condensed consolidated financial statements. The transaction was funded through debt of $96.2 million which is primarily long-term, expiring on January 8, 2031. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Cash dividends paid during the nine months ended September 30, 2019 was $174.7 million . Cash dividends paid during the nine months ended September 30, 2018 was $179.2 million . As an English public limited company, we are required under U.K. law to have available “distributable reserves” to conduct share repurchases or pay dividends to shareholders. Distributable reserves are a statutory requirement and are not linked to a GAAP reported amount (e.g., retained earnings). The declaration and payment of dividends require the authorization of our Board of Directors, provided that such dividends on issued share capital may be paid only out of our “distributable reserves” on our statutory balance sheet. Therefore, we are not permitted to pay dividends out of share capital, which includes share premium. In December 2018, our Board of Directors authorized an extension of our share repurchase program for $300.0 million for the purchase of ordinary shares. We repurchased 4.0 million of ordinary shares for a total consideration of $92.7 million during the nine months ended September 30, 2019 under our authorized share repurchase program. We intend to cancel repurchased shares and not hold them in treasury. Canceled treasury shares are accounted for using the constructive retirement method. Accumulated other comprehensive income (loss) consisted of the following: (In millions) Foreign Currency Hedging Defined Pension Accumulated Other Accumulated Other December 31, 2018 $ (1,234.4 ) $ (32.9 ) $ (92.4 ) $ (1,359.7 ) $ (4.0 ) Other comprehensive income (loss) before reclassifications, net of tax (40.7 ) (32.1 ) 1.4 (71.4 ) (3.1 ) Reclassification adjustment for net losses (gains) included in net income (loss), net of tax — (10.7 ) 2.3 (8.4 ) — Other comprehensive income (loss), net of tax (40.7 ) (42.8 ) 3.7 (79.8 ) (3.1 ) September 30, 2019 $ (1,275.1 ) $ (75.7 ) $ (88.7 ) $ (1,439.5 ) $ (7.1 ) Reclassifications out of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statements of Income Gains on foreign currency translation $ — $ 41.1 $ — $ 41.1 Other income (expense), net Gains (losses) on hedging instruments Foreign exchange contracts $ (3.1 ) $ (0.8 ) $ (15.6 ) $ 2.8 Revenue 1.6 1.1 6.5 6.2 Cost of sales — (0.1 ) 0.1 (0.1 ) Selling, general and administrative expense 23.3 4.8 21.9 0.1 Other income (expense), net 21.8 5.0 12.9 9.0 Income (loss) before income taxes 4.7 1.2 2.2 1.8 Provision for income taxes (Note 17) $ 17.1 $ 3.8 $ 10.7 $ 7.2 Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) (1.0 ) (0.3 ) (2.7 ) (0.6 ) (a) (1.0 ) (0.3 ) (2.7 ) (0.6 ) Income (loss) before income taxes (0.1 ) — (0.4 ) — Provision for income taxes (Note 17) $ (0.9 ) $ (0.3 ) $ (2.3 ) $ (0.6 ) Net income (loss) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Under the TechnipFMC plc Incentive Award Plan (the “Plan”), we grant certain incentives and awards to officers, employees, non-employee directors and consultants of TechnipFMC and its subsidiaries. Awards may include share options, share appreciation rights, performance stock units, restricted stock units, restricted shares or other awards authorized under the Plan. Under the Plan, 24.1 million ordinary shares were authorized for awards. We recognize compensation expense and the corresponding tax benefits for awards under the Plan. Share-based compensation expense for non-vested share options and time-based and performance-based restricted stock units $19.9 million and $15.9 million for the three months ended September 30, 2019 and 2018 , respectively, and $61.4 million and $41.7 million for the nine months ended September 30, 2019 and 2018 , respectively. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Expenses | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Expenses | IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSES Impairment, restructuring and other expenses were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Subsea $ 131.2 $ 5.0 $ 138.0 $ 19.1 Onshore/Offshore 5.2 (0.2 ) 11.1 (5.8 ) Surface Technologies 0.7 1.3 3.4 8.0 Corporate and other 3.2 3.6 13.5 11.3 Total impairment, restructuring and other expenses $ 140.3 $ 9.7 $ 166.0 $ 32.6 Restructuring charges during the three and nine months ended September 30, 2019 and 2018 primarily consisted of severance and other employee related costs. We recorded a $125.1 million vessel impairment charge in Subsea for the three months ended September 30, 2019. See Note 21 for further details. |
Commitments And Contingent Liab
Commitments And Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Contingent liabilities associated with guarantees - In the ordinary course of business, we enter into standby letters of credit, performance bonds, surety bonds and other guarantees with financial institutions for the benefit of our customers, vendors and other parties. The majority of these financial instruments expire within 5 years . Management does not expect any of these financial instruments to result in losses that, if incurred, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Guarantees consisted of the following: (In millions) September 30, December 31, Financial guarantees (a) $ 924.2 $ 750.4 Performance guarantees (b) 4,773.1 4,047.6 Maximum potential undiscounted payments $ 5,697.3 $ 4,798.0 (a) 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 there is a failure to fulfill our financial obligations. (b) 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. Management believes the ultimate resolution of our known contingencies will not materially affect our consolidated financial position, results of operations or cash flows. Contingent liabilities associated with legal and tax matters - We are involved in various pending or potential legal and tax 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. On March 28, 2016, FMC Technologies received an inquiry from the U.S. Department of Justice (“DOJ”) related to the DOJ's investigation of whether certain services Unaoil S.A.M. provided to its clients, including FMC Technologies, violated the U.S. Foreign Corrupt Practices Act (“FCPA”). On March 29, 2016, Technip S.A. also received an inquiry from the DOJ related to Unaoil. We cooperated with the DOJ's investigations and, with regard to FMC Technologies, a related investigation by the U.S. Securities and Exchange Commission (“SEC”). In late 2016, Technip S.A. was contacted by the DOJ regarding its investigation of offshore platform projects awarded between 2003 and 2007, performed in Brazil by a joint venture company in which Technip S.A. was a minority participant, and we have also raised with DOJ certain other projects performed by Technip S.A. subsidiaries in Brazil between 2002 and 2013. The DOJ has also inquired about projects in Ghana and Equatorial Guinea that were awarded to Technip S.A. subsidiaries in 2008 and 2009, respectively. We cooperated with the DOJ in its investigation into potential violations of the FCPA in connection with these projects. We contacted and cooperated with the Brazilian authorities (Federal Prosecution Service (“MPF”), the Comptroller General of Brazil (“CGU”) and the Attorney General of Brazil (“AGU”)) with their investigation concerning the projects in Brazil and have also contacted and are cooperating with French authorities (the Parquet National Financier (“PNF”)) with their investigation about these existing matters. On June 25, 2019, we announced a global resolution to pay a total of $301.3 million to the DOJ, the SEC, the MPF, and the CGU/AGU to resolve these anti-corruption investigations. We will not be required to have a monitor and will, instead, provide reports on our anti-corruption program to the Brazilian and U.S. authorities for two and three years, respectively. As part of this resolution, we entered into a three-year Deferred Prosecution Agreement (“DPA”) with the DOJ related to charges of conspiracy to violate the FCPA related to conduct in Brazil and with Unaoil. In addition, Technip USA, Inc., a U.S. subsidiary, pled guilty to one count of conspiracy to violate the FCPA related to conduct in Brazil. We will also provide the DOJ reports on our anti-corruption program during the term of the DPA. In Brazil, our subsidiaries Technip Brasil - Engenharia, Instalações E Apoio Marítimo Ltda. and Flexibrás Tubos Flexíveis Ltda. entered into leniency agreements with both the MPF and the CGU/AGU. We have committed, as part of those agreements, to make certain enhancements to their compliance programs in Brazil during a two-year self-reporting period, which aligns with our commitment to cooperation and transparency with the compliance community in Brazil and globally. In September 2019, the SEC approved our previously disclosed agreement in principle with the SEC Staff and issued an Administrative Order, pursuant to which we paid the SEC $5.1 million , which was included in the global resolution of $301.3 million . To date, the investigation by PNF related to historical projects in Equatorial Guinea and Ghana has not reached resolution. We remain committed to finding a resolution with the PNF and will maintain a $70.0 million provision related to this investigation. As we continue to progress our discussions with PNF towards resolution, the amount of a settlement could exceed this provision. There is no certainty that a settlement with PNF will be reached or that the settlement will not exceed current accruals. The PNF has a broad range of potential sanctions under anticorruption laws and regulations that it may seek to impose in appropriate circumstances including, but not limited to, fines, penalties, and modifications to business practices and compliance programs. Any of these measures, if applicable to us, as well as potential customer reaction to such measures, could have a material adverse impact on our business, results of operations, and financial condition. If we cannot reach a resolution with the PNF, we could be subject to criminal proceedings in France, the outcome of which cannot be predicted. Contingent liabilities associated with liquidated damages - Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a conforming claim under these provisions. These contracts define the conditions under which our customers may make claims against us for liquidated damages. Based upon the evaluation of our performance and other commercial and legal analysis, management believes we have appropriately recognized probable liquidated damages at September 30, 2019 and December 31, 2018 , and that the ultimate resolution of such matters will not materially affect our consolidated financial position, results of operations, or cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our provision for income taxes for the three months ended September 30, 2019 and 2018 reflected effective tax rates of (237.1)% and 33.2% , respectively. The year-over-year increase in the effective tax rate for the three months ended September 30, 2019 and September 30, 2018 was primarily due to the increased impact of losses (including certain asset impairments) in jurisdictions with a full valuation allowance and an unfavorable change in earnings mix. Our provision for income tax for the nine months ended September 30, 2019 and 2018 reflect effective tax rates of 84.1% and 35.0% , respectively. The year-over-year increase in the effective tax rate for the nine months ended September 30, 2019 and 2018 was primarily due to the increased impact of losses (including certain asset impairments) in jurisdictions with a full valuation allowance and an unfavorable change in forecasted earnings mix, offset in part by recognized tax benefits related to the finalization of previously estimated tax liabilities based on the filing of tax returns in certain jurisdictions and the release of a valuation allowance previously recorded against certain deferred tax assets in Brazil. Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS For purposes of mitigating the effect of changes in exchange rates, we hold derivative financial instruments to hedge the risks of certain identifiable and anticipated transactions and recorded assets and liabilities in our consolidated balance sheets. The types of risks hedged are those relating to the variability of future earnings and cash flows caused by movements in foreign currency exchange rates. Our policy is to hold derivatives only for the purpose of hedging risks associated with anticipated foreign currency purchases and sales created in the normal course of business, and not for trading purposes where the objective is solely to generate profit. Generally, we enter into hedging relationships such that changes in the fair values or cash flows of the transactions being hedged are expected to be offset by corresponding changes in the fair value of the derivatives. For derivative instruments that qualify as a cash flow hedge, the effective portion of the gain or loss of the derivative, which does not include the time value component of a forward currency rate, is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, any change in the fair value of those instruments are reflected in earnings in the period such change occurs. We hold the following types of derivative instruments: Foreign exchange rate forward contracts - The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies and recorded assets and liabilities in our consolidated balance sheets. At September 30, 2019 , we held the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Euro 987.4 1,077.2 Brazilian real 634.2 152.3 British pound 291.1 358.3 Norwegian krone 1,525.1 168.1 Malaysian ringgit 382.0 91.2 Singapore dollar 90.6 65.5 Japanese yen 4,155.0 38.5 Australian dollar 165.1 111.6 Mexican peso (300.0 ) (15.2 ) Canadian dollar (83.3 ) (63.0 ) U.S. dollar (1,264.0 ) (1,264.0 ) Foreign exchange rate instruments embedded in purchase and sale contracts - The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or comply with government restrictions on the currency used to purchase goods in certain countries. At September 30, 2019 , our portfolio of these instruments included the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real 6.6 1.6 Euro (4.9 ) (5.3 ) U.S. dollar 2.8 2.8 Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. See Note 20 to our condensed consolidated financial statements of this Quarterly Report 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: September 30, 2019 December 31, 2018 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 97.5 $ 217.6 $ 83.8 $ 127.7 Long-term - Derivative financial instruments 30.4 92.3 9.0 35.6 Total derivatives designated as hedging instruments 127.9 309.9 92.8 163.3 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments 8.7 8.7 11.9 10.7 Long-term - Derivative financial instruments — — 0.1 0.1 Total derivatives not designated as hedging instruments 8.7 8.7 12.0 10.8 Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium 15.7 — 9.2 — Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives — 15.7 — 9.2 Total derivatives $ 152.3 $ 334.3 $ 114.0 $ 183.3 Cash flow derivative hedges of forecasted transactions, net of tax, which qualify for hedge accounting, resulted in accumulated other comprehensive losses of $75.7 million and $33.0 million at September 30, 2019 and December 31, 2018 , respectively. We expect to transfer an approximately $48.0 million loss from accumulated OCI to earnings during the next 12 months when the anticipated transactions actually occur. All anticipated transactions currently being hedged are expected to occur by the second half of 2023 . 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 Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Foreign exchange contracts $ (47.0 ) $ 16.5 $ (44.0 ) $ (24.0 ) The following represents the effect of cash flow hedge accounting on the consolidated statements of income for the three and nine months ended September 30, 2019 and 2018 : (In millions) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling, Other income (expense), net Revenue Cost of sales Selling, Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income $ (3.1 ) $ 1.6 $ — $ 23.3 $ (0.8 ) $ 1.1 $ (0.1 ) $ 4.8 Amounts excluded from effectiveness testing 2.6 (2.9 ) — (8.6 ) (5.7 ) 6.1 — (26.6 ) Total cash flow hedge gain (loss) recognized in income (0.5 ) (1.3 ) — 14.7 (6.5 ) 7.2 (0.1 ) (21.8 ) Gain (loss) recognized in income on derivatives not designated as hedging instruments (0.1 ) 0.1 — (19.4 ) — 0.2 — (5.3 ) Total $ (0.6 ) $ (1.2 ) $ — $ (4.7 ) $ (6.5 ) $ 7.4 $ (0.1 ) $ (27.1 ) (In millions) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling, Other income (expense), net Revenue Cost of sales Selling, Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income (loss) $ (15.6 ) $ 6.5 $ 0.1 $ 21.9 $ 2.8 $ 6.2 $ (0.1 ) $ 0.1 Amounts excluded from effectiveness testing 1.5 (5.1 ) — (30.7 ) (4.9 ) 4.1 — (23.4 ) Total cash flow hedge gain (loss) recognized in income (14.1 ) 1.4 0.1 (8.8 ) (2.1 ) 10.3 (0.1 ) (23.3 ) Gain (loss) recognized in income on derivatives not designated as hedging instruments (1.2 ) — — (14.4 ) (0.9 ) 0.4 — (6.9 ) Total $ (15.3 ) $ 1.4 $ 0.1 $ (23.2 ) $ (3.0 ) $ 10.7 $ (0.1 ) $ (30.2 ) Balance Sheet Offsetting - We execute derivative contracts only with counterparties that consent to a master netting agreement, which permits net settlement of the gross derivative assets against gross derivative liabilities. Each instrument is accounted for individually and assets and liabilities are not offset. As of September 30, 2019 and December 31, 2018 , we had no collateralized derivative contracts. The following tables present both gross information and net information of recognized derivative instruments: September 30, 2019 December 31, 2018 (In millions) Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Derivative assets $ 152.3 $ (136.4 ) $ 15.9 $ 114.0 $ (105.9 ) $ 8.1 Derivative liabilities $ 334.3 $ (136.4 ) $ 197.9 $ 183.3 $ (105.9 ) $ 77.4 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 December 31, 2018 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Equity securities (a) $ 50.7 $ 50.7 $ — $ — $ 40.4 $ 40.4 $ — $ — Money market fund 1.6 — 1.6 — 1.6 — 1.6 — Stable value fund (b) 2.2 — — — 0.5 — — — Held-to-maturity debt securities 60.0 — 60.0 — 20.0 — 20.0 — Derivative financial instruments Synthetic bonds - call option premium 15.7 — 15.7 — 9.2 — 9.2 — Foreign exchange contracts 136.6 — 136.6 — 104.8 — 104.8 — Assets held for sale 17.6 — — 17.6 9.6 — — 9.6 Total assets $ 284.4 $ 50.7 $ 213.9 $ 17.6 $ 186.1 $ 40.4 $ 135.6 $ 9.6 Liabilities Redeemable financial liability $ 288.8 $ — $ — $ 288.8 $ 408.5 $ — $ — $ 408.5 Derivative financial instruments Synthetic bonds - embedded derivatives 15.7 — 15.7 — 9.2 — 9.2 — Foreign exchange contracts 318.6 — 318.6 — 174.1 — 174.1 — Liabilities held for sale 21.0 — — 21.0 16.2 — — 16.2 Total liabilities $ 644.1 $ — $ 334.3 $ 309.8 $ 608.0 $ — $ 183.3 $ 424.7 (a) Includes fixed income and other investments measured at fair value. (b) 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. Equity securities and Available-for-sale securities - The fair value measurement of our traded securities and Available-for-sale securities is based on quoted prices that we have the ability to access in public markets. Stable value fund and Money market fund - Stable value fund and money market fund are valued at the net asset value of the shares held at the end of the quarter, which is based on the fair value of the underlying investments using information reported by our investment advisor at quarter-end. Held-to-maturity debt securities - held-to-maturity debt securities consist of government bonds. These investments are stated at amortized cost, which approximates fair value. Assets and liabilities held for sale - The fair value of our assets and liabilities held for sale was determined using a market approach that took into consideration the expected sales price. Mandatorily redeemable financial liability - In the fourth quarter of 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. As part of this transaction, we recognized the fair value of the mandatorily redeemable financial liability using a discounted cash flow model. The key assumptions used in applying the income approach are the selected discount rates and the expected dividends to be distributed in the future to the noncontrolling interest holders. Expected dividends to be distributed are based on the noncontrolling interests’ share of the expected profitability of the underlying contract, the selected discount rate and the overall timing of completion of the project. A mandatorily redeemable financial liability of $408.5 million was recognized as of December 31, 2018 to account for the fair value of the non-controlling interests. See Note 10 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the short-term portion of the mandatorily redeemable financial liability. A decrease of one percentage point in the discount rate would have increased the liability by $2.8 million as of September 30, 2019 . The fair value measurement is based upon significant unobservable inputs not observable in the market and is consequently classified as a Level 3 fair value measurement. Change in the fair value of our Level 3 mandatorily redeemable financial liability is recorded as interest expense on the consolidated statements of income and is presented below: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Balance at beginning of period $ 412.8 $ 308.1 $ 408.5 $ 312.0 Less: Gains (losses) recognized in net interest expense (99.1 ) (93.2 ) (324.0 ) (213.5 ) Less: Settlements 223.1 — 443.7 124.2 Balance at end of period $ 288.8 $ 401.3 $ 288.8 $ 401.3 Redeemable noncontrolling interest - In the first quarter of 2018, we acquired a 51% share in Island Offshore. The noncontrolling interest is recorded as mezzanine equity at fair value. The fair value measurement is based upon significant unobservable inputs not observable in the market and is consequently classified as a Level 3 fair value measurement. As of September 30, 2019 and December 31, 2018 , the fair value of our redeemable noncontrolling interest was $38.5 million . See Note 3 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the acquisition. Derivative financial instruments - We use the income approach as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used. Our credit spread, and the credit spread of other counterparties not publicly available, are approximated by using the spread of similar companies in the same industry, of similar size and with the same credit rating. At the present time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. See Note 19 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to derivative financial instruments. Other fair value disclosures Fair value of debt - The respective carrying value and fair value of our Synthetic bonds and our Senior Notes and private placement notes on a combined basis as of September 30, 2019 was $1,926.8 million and $2,085.0 million , respectively. The respective carrying value and fair value of our Synthetic bonds and our Senior Notes and private placement notes on a combined basis as of December 31, 2018 were $1,998.6 million and $2,109.7 million . Other fair value disclosures - The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, commercial paper, debt associated with our bank borrowings, credit facilities, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value. Credit risk - By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectibility assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement, which permits the net settlement of gross derivative assets against gross derivative liabilities. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENT In October 2019, we entered into an agreement to obtain voting control interests of legal entities that own the interest in Technip Odebrecht, currently accounted for as an equity method investment in our Subsea segment. This transaction is expected to close by December 31, 2019. In November 2019, we announced our intent to sell our G1201 vessel as part of our overall strategy to optimize the profile and size of our subsea fleet. We entered into a Memorandum of Agreement (MOA), which is subject to certain conditions precedent to complete the transaction. We expect to complete the sale in December 2019, as these conditions are met, including delivery of the vessel in December 2019. Due to this transaction we reviewed the carrying value of the G1200 vessel, the sister vessel to the G1201, of similar design, asset class and functionality, as of September 30, 2019. As a result of this assessment, an impairment charge of $125.1 million |
Basis Of Presentation and Sig_2
Basis Of Presentation and Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | BASIS OF PRESENTATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC” or the “Company”) 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. These unaudited condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2018 . 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, 2019 . Reclassifications – Certain prior-year amounts have been reclassified to conform to the current year’s presentation. Revision of Prior Period Financial Statements - In connection with the preparation of the condensed consolidated financial statements for the three and nine months ended September 30, 2019 , we identified errors in our previously issued financial statements related to the classification between service revenue, product revenue and the related cost of sales. The correction had no effect on the reported total revenues, consolidated net income (loss) or stockholders’ equity for any periods previously presented. In accordance with Staff Accounting Bulletin (“SAB ”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required. In accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections , we corrected the errors for the three and nine months ended September 30, 2018 by revising the condensed consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. |
Lessor, Leases | Leases – The majority of our leases are operating leases. We account for leases in accordance with ASC Topic 842, Leases, which we adopted on January 1, 2019 using the modified retrospective method. Refer to Note 5 for further discussion of the adoption, including the impact on our 2019 financial statements. Lessor Arrangements We lease real estate including land, buildings and warehouses, machinery/equipment, and vessels from a lessor perspective. We determine if an arrangement is a lease at inception by assessing whether an identified asset exists and if the customer has the right to control the use of the identified asset. We use our implicit rate for our lessor arrangements. We have elected the practical expedient available for lessors to not separate lease and non-lease components for vessels. If the non-lease component is predominant in our contracts, we account for the contracts under the revenue recognition guidance in ASC 606. If the lease component is predominant in our contracts, we account for the contracts under the lease guidance in ASC 842 . We estimate the amount we expect to derive from the underlying asset following the end of the lease term based on remaining economic life. Our lessor arrangements generally do not include any residual value guarantees. We recognize lessee payments of lessor costs such as taxes and insurance on a net basis when the lessee pays those costs directly to a third party or when the amount paid by the lessee is not readily determinable. |
Reclassifications | In accordance with Staff Accounting Bulletin (“SAB ”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required. In accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections , we corrected the errors for the three and nine months ended September 30, 2018 by revising the condensed consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Recently Adopted Accounting Standards, Leases | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use (“ROU”) asset and a lease liability for all outstanding leases excluding short-term leases. The liability is equal to the present value of the remaining lease payments. The ROU asset is based on the liability, subject to certain adjustments (e.g., initial direct costs, payments made by the lessee prior to lease commencement and any lessor incentives). For income statement purposes, lessees are required to classify leases as either operating or finance leases. Operating leases result in straight-line expense while finance leases result in a front-loaded expense pattern. Lessor accounting is largely unchanged but has been updated to align with certain changes to the lessee model and the new revenue recognition standard. Topic 842 was subsequently amended to provide practical expedient for transition and targeted improvements to the new lease standard. The FASB issued in March 2019, ASU 2019-01, “Leases (Topic 842): Codification Improvements” to clarify certain transition disclosure requirements. The Company adopted the new lease standard as of January 1, 2019, using a modified retrospective transition method and applying the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings in the period of adoption. In our first annual period after adoption, the year ending December 31, 2019, the comparative periods will not be restated and will be presented under legacy lease accounting guidance in effect for those periods, Topic 840. The new standard provides a number of practical expedients specific to transition. We have elected the “package of practical expedients”, which permits us not to reassess (1) whether any expired or existing arrangements are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. The new standard also provides practical expedients for an entity’s ongoing accounting, including a practical expedient which allows lessees and lessors to elect to not separate lease and non-lease components. We have elected the practical expedient available for lessees to not separate lease and non-lease components for all asset classes other than vessels, which typically include significant non-lease components. We have elected the practical expedient available for lessors to not separate lease and non-lease components for vessels. The Company also elected not to recognize right of use assets and lease liabilities on the balance sheet for short-term leases, which have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. Lease cost of short-term leases are recognized on a straight-line basis over the lease term and disclosed within our financial statements. We believe short-term lease commitments are not materially different than the short-term lease cost for the period. Adoption of the new lease accounting guidance had a material impact on our consolidated balance sheets but did not have a material impact on our consolidated income statements. We recognized on January 1, 2019, (1) a lease liability of approximately $1,189.6 million which represents the present value of the remaining lease payments, discounted using the Company’s applicable weighted average incremental borrowing rates, and (2) an ROU asset of approximately $1,115.5 million which represents the lease liability of $1,189.6 million adjusted for accrued and prepaid rent, lease incentives, and other balances. The impact was recorded as an adjustment to increase retained earnings by approximately $1.8 million |
Lessee, Leases | Lessee Arrangements We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. Substantially all our leases are classified as operating leases. We determine if an arrangement is a lease at inception by assessing whether an identified asset exists and if we have the right to control the use of the identified asset. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities (current), and Operating lease liabilities (non-current) on our consolidated balance sheets. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term. With the exception of rare cases in which the implicit rate is readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Operating lease right-of-use assets also includes any lease prepayments made and excludes lease incentives we received from the lessor. Lease cost for lease payments is recognized on a straight-line basis over the lease term. Several of our leases provide for certain guarantees of residual value. We estimate and include in the determination of lease payments any amount probable of being owed under these residual value guarantees. At the date of adoption and September 30, 2019, we determined that there were no residual value guarantees which were probable of being owed. Our leases do not contain any material restrictive covenants. Lease terms within our lessee arrangements may include options to extend/renew or terminate the lease and/or purchase the underlying asset when it is reasonably certain that we will exercise that option. The Company applies a portfolio approach by asset class to determine lease term renewals. The leases within these portfolios are categorized by asset class and have initial lease terms that vary depending on the asset class. The renewal terms range from 60 days to 5 years for asset classes such as temporary residential housing, forklifts, vehicles, vessels, office and IT equipment, and tool rentals, and up to 15 years or more for commercial real estate. Short-term leases with an initial term of 12 months or less that do not include a purchase option are not recorded on the balance sheet. Lease costs for short-term leases are recognized on a straight-line basis over the lease term and amounts related to short-term leases are disclosed within our financial statements. The Company has variable lease payments, including adjustments to lease payments based on an index or rate (such as the Consumer Price Index), fair value adjustments to lease payments, and common area maintenance, real estate taxes, and insurance payments in triple-net real estate leases. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included when measuring consideration within our lease arrangements using the payments’ base rate or index. Variable payments that do not depend on an index or rate are recognized in profit or loss and are disclosed as ‘variable lease cost’ in the period they are incurred. We adopted the practical expedient to not separate lease and non-lease components for all asset classes except for vessels, which have significant non-lease components. The Company currently subleases certain of its leased real estate and vessels to third parties. It is expected that most subleases will be classified as operating leases by the sublessor under GAAP. |
Lessor, Leases | Leases – The majority of our leases are operating leases. We account for leases in accordance with ASC Topic 842, Leases, which we adopted on January 1, 2019 using the modified retrospective method. Refer to Note 5 for further discussion of the adoption, including the impact on our 2019 financial statements. Lessor Arrangements We lease real estate including land, buildings and warehouses, machinery/equipment, and vessels from a lessor perspective. We determine if an arrangement is a lease at inception by assessing whether an identified asset exists and if the customer has the right to control the use of the identified asset. We use our implicit rate for our lessor arrangements. We have elected the practical expedient available for lessors to not separate lease and non-lease components for vessels. If the non-lease component is predominant in our contracts, we account for the contracts under the revenue recognition guidance in ASC 606. If the lease component is predominant in our contracts, we account for the contracts under the lease guidance in ASC 842 . We estimate the amount we expect to derive from the underlying asset following the end of the lease term based on remaining economic life. Our lessor arrangements generally do not include any residual value guarantees. We recognize lessee payments of lessor costs such as taxes and insurance on a net basis when the lessee pays those costs directly to a third party or when the amount paid by the lessee is not readily determinable. |
Basis Of Presentation and Sig_3
Basis Of Presentation and Significant Accounting Policies Restatement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement to Prior Year Income | The effects of the revision on our condensed consolidated statements of income for the three and nine months ended September 30, 2018 are as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 (In millions, except per share data) As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Revenue Service revenue $ 2,487.9 $ (211.0 ) $ 2,276.9 $ 7,159.2 $ (542.3 ) $ 6,616.9 Product revenue 595.2 211.0 806.2 1,907.3 542.3 2,449.6 Total revenue 3,143.8 — 3,143.8 9,229.9 — 9,229.9 Costs and expenses Cost of service revenue 2,046.6 (186.4 ) 1,860.2 5,846.0 (357.6 ) 5,488.4 Cost of product revenue 481.0 186.4 667.4 1,559.9 357.6 1,917.5 Total costs and expenses 2,863.7 — 2,863.7 8,527.2 — 8,527.2 Net income (loss) attributable to TechnipFMC plc $ 136.9 $ — $ 136.9 $ 337.7 $ — $ 337.7 Earnings (loss) per share attributable to TechnipFMC plc (Note 8) Basic $ 0.30 $ — $ 0.30 $ 0.73 $ — $ 0.73 Diluted $ 0.30 $ — $ 0.30 $ 0.73 $ — $ 0.73 Weighted average shares outstanding (Note 8) Basic 454.5 — 454.5 460.0 — 460.0 Diluted 459.0 — 459.0 464.0 — 464.0 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table is a summary of the Company’s components of net lease cost for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (In millions) September 30, 2019 September 30, 2019 Operating lease cost including variable costs $ 90.0 $ 273.4 Short-term lease costs 4.1 19.0 Less: sublease income 2.5 6.5 Net lease cost $ 91.6 $ 285.9 |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases for the nine months ended September 30, 2019 is as follows: Nine Months Ended (In millions) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 289.4 Right-of-use assets obtained in exchange for lease liabilities Operating leases 36.3 |
Schedule of supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases as of September 30, 2019 is as follows: (In millions, except lease term and discount rate) September 30, 2019 Weighted average remaining lease term Operating leases 7.0 years Weighted average discount rate Operating leases 4.4 % |
Schedule of maturities of operating and finance leases liabilities | The following table is a summary of the maturity of lease liabilities under operating leases as of September 30, 2019 : (in millions) Operating Leases 2019 $ 305.0 2020 230.2 2021 129.1 2022 101.2 2023 77.2 Thereafter 334.6 Total lease payments 1,177.3 Less: Imputed interest (a) 209.6 Total lease liabilities (b) $ 967.7 Note: For leases commencing prior to 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. (a) Calculated using the interest rate for each lease. (b) Includes the current portion of $224.3 million for operating leases. |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018 , future minimum rental payments under noncancellable operating leases under ASC Topic 840 were: (In millions) 2019 $ 329.8 2020 286.1 2021 192.3 2022 123.8 2023 102.1 Thereafter 485.6 Total lease payment 1,519.7 Less income from sub-leases 25.6 Net minimum operating lease payments $ 1,494.1 |
Lease revenue | The following table is a summary of the Company’s components of lease revenue for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended (In millions) September 30, 2019 September 30, 2019 Operating lease revenue including variable revenue $ 85.7 $ 200.9 |
Schedule of maturities of operating and finance leases receivables | The following table is a summary of the maturity analysis of the undiscounted cash flows to be received on an annual basis for each of the first five years, and a total of the amounts for the remaining years: (In millions) Operating Leases 2019 $ 6.2 2020 14.9 2021 17.5 2022 18.0 2023 2.5 Thereafter — Total undiscounted cash flows $ 59.1 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables present products and services revenue by geography for each reportable segment for the three and nine months ended September 30, 2019 and 2018 : Reportable Segments Three Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea Onshore/ Surface Technologies Europe, Russia, Central Asia $ 390.8 $ 682.4 $ 55.5 $ 421.4 $ 831.5 $ 66.0 America 513.1 156.9 171.0 437.4 89.4 208.3 Asia Pacific 171.0 311.7 50.3 118.2 300.6 34.1 Africa 143.6 158.6 14.9 162.5 54.8 16.3 Middle East 81.2 286.7 61.7 38.8 256.2 47.6 Total products and services revenue $ 1,299.7 $ 1,596.3 $ 353.4 $ 1,178.3 $ 1,532.5 $ 372.3 Reportable Segments Nine Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea Onshore/ Surface Technologies Europe, Russia, Central Asia $ 1,250.0 $ 1,975.2 $ 171.3 $ 1,136.3 $ 2,537.9 $ 172.5 America 1,232.0 514.2 564.1 1,219.3 253.0 653.3 Asia Pacific 448.4 889.1 139.4 368.1 906.5 85.9 Africa 663.2 330.1 41.1 703.9 202.3 43.4 Middle East 352.0 727.8 183.5 89.1 548.6 146.4 Total products and services revenue $ 3,945.6 $ 4,436.4 $ 1,099.4 $ 3,516.7 $ 4,448.3 $ 1,101.5 The following tables represent revenue by contract type for each reportable segment for the three and nine months ended September 30, 2019 and 2018 : Reportable Segments Three Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea (b) Onshore/ Surface Technologies Services $ 743.8 $ 1,596.3 $ 69.5 $ 674.2 $ 1,532.5 $ 70.2 Products 555.9 — 283.9 504.1 — 302.1 Total products and services revenue 1,299.7 1,596.3 353.4 1,178.3 1,532.5 372.3 Lease (a) 42.5 — 43.2 30.8 — 29.9 Total revenue $ 1,342.2 $ 1,596.3 $ 396.6 $ 1,209.1 $ 1,532.5 $ 402.2 Reportable Segments Nine Months Ended September 30, 2019 September 30, 2018 (In millions) Subsea Onshore/ Surface Technologies Subsea (b) Onshore/ Surface Technologies Services $ 2,359.6 $ 4,436.4 $ 213.5 $ 1,983.6 $ 4,448.3 $ 185.0 Products 1,586.0 — 885.9 1,533.1 — 916.5 Total products and services revenue 3,945.6 4,436.4 1,099.4 3,516.7 4,448.3 1,101.5 Lease (a) 90.6 — 110.3 90.0 — 73.4 Total revenue $ 4,036.2 $ 4,436.4 $ 1,209.7 $ 3,606.7 $ 4,448.3 $ 1,174.9 (a) Represents revenue not subject to ASC Topic 606. See Note 5 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to lease revenue. (b) We revised the condensed consolidated statement of operations to correct the classification of service revenue and product revenue in the amount of $211.0 million and $542.3 million for the three and nine months ended September 30, 2018 , respectively. See Note 1 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the revision. |
Contract balances | The following table provides information about net contract assets (liabilities) as of September 30, 2019 and December 31, 2018 : (In millions) September 30, December 31, $ change % change Contract assets $ 1,503.0 $ 1,295.0 $ 208.0 16.1 Contract (liabilities) (4,122.5 ) (4,085.1 ) (37.4 ) (0.9 ) Net contract assets (liabilities) $ (2,619.5 ) $ (2,790.1 ) $ 170.6 6.1 |
Remaining revenue performance obligations | The following table details the order backlog for each business segment as of September 30, 2019 : (In millions) 2019 2020 Thereafter Subsea $ 1,425.6 $ 4,251.0 $ 2,979.2 Onshore/Offshore 2,084.5 5,254.4 7,691.9 Surface Technologies 257.2 171.5 — Total remaining unsatisfied performance obligations $ 3,767.3 $ 9,676.9 $ 10,671.1 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment revenue and segment operating profit | Segment revenue and segment operating profit were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Segment revenue Subsea $ 1,342.2 $ 1,209.1 $ 4,036.2 $ 3,606.7 Onshore/Offshore 1,596.3 1,532.5 4,436.4 4,448.3 Surface Technologies 396.6 402.2 1,209.7 1,174.9 Total revenue $ 3,335.1 $ 3,143.8 $ 9,682.3 $ 9,229.9 Segment operating profit (loss) Subsea $ (79.6 ) $ 79.7 $ 65.0 $ 210.0 Onshore/Offshore 284.6 243.4 714.3 617.6 Surface Technologies 6.1 51.9 42.1 134.0 Total segment operating profit $ 211.1 $ 375.0 $ 821.4 $ 961.6 Corporate items Corporate expense (a) $ (128.8 ) $ (68.1 ) $ (361.4 ) $ (200.9 ) Net interest expense (116.5 ) (106.0 ) (345.3 ) (244.3 ) Total corporate items (245.3 ) (174.1 ) (706.7 ) (445.2 ) Income (loss) before income taxes (b) $ (34.2 ) $ 200.9 $ 114.7 $ 516.4 (a) Corporate expense primarily includes corporate staff expenses, legal reserve, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, merger transaction, integration expenses, and separation expenses. (b) Includes amounts attributable to noncontrolling interests. |
Segment operating capital employed and segment assets | Segment assets were as follows: (In millions) September 30, December 31, 2018 Segment assets Subsea $ 11,817.0 $ 11,037.8 Onshore/Offshore 4,231.4 4,355.2 Surface Technologies 2,992.5 2,825.6 Intercompany eliminations (30.6 ) (26.4 ) Total segment assets 19,010.3 18,192.2 Corporate (a) 5,769.4 6,592.3 Total assets $ 24,779.7 $ 24,784.5 (a) Corporate includes cash, deferred income tax balances, legal provisions, property, plant and equipment not associated with a specific segment, pension assets, the fair value of derivative financial instruments, and LIFO adjustments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of the number of shares used for the basic and diluted earnings per share | A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share data) 2019 2018 2019 2018 Net income (loss) attributable to TechnipFMC plc $ (119.1 ) $ 136.9 $ (1.2 ) $ 337.7 Weighted average number of shares outstanding 446.9 454.5 448.6 460.0 Dilutive effect of restricted stock units — 1.2 — 1.0 Dilutive effect of stock options — 0.1 — 0.1 Dilutive effect of performance shares — 3.2 — 2.9 Total shares and dilutive securities 446.9 459.0 448.6 464.0 Basic earnings (loss) per share attributable to TechnipFMC plc $ (0.27 ) $ 0.30 $ — $ 0.73 Diluted earnings (loss) per share attributable to TechnipFMC plc $ (0.27 ) $ 0.30 $ — $ 0.73 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Components Of Inventories | Inventories consisted of the following: (In millions) September 30, December 31, Raw materials $ 366.9 $ 366.4 Work in process 250.5 146.4 Finished goods 794.5 738.4 Inventories, net $ 1,411.9 $ 1,251.2 |
Other Current Assets & Other _2
Other Current Assets & Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Current Assets and Other Current Liabilities [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following: (In millions) September 30, December 31, Value-added tax receivables $ 389.5 $ 305.8 Prepaid expenses 96.9 91.3 Other taxes receivables 87.4 85.0 Sundry receivables 81.5 87.0 Asset held for sale 17.6 9.6 Other 71.3 76.9 Total other current assets $ 744.2 $ 655.6 |
Schedule of other current liabilities | Other current liabilities consisted of the following: (In millions) September 30, December 31, Warranty accruals and project contingencies 292.4 418.2 Value added tax and other taxes payable 219.8 214.3 Legal provisions 214.0 418.2 Redeemable financial liability 196.3 173.0 Provisions 103.5 135.5 Social security liability 101.1 112.3 Compensation accrual 71.7 87.3 Liabilities held for sale 21.0 16.2 Current portion of accrued pension and other post-retirement benefits 12.8 14.0 Other accrued liabilities 238.4 182.6 Total other current liabilities $ 1,471.0 $ 1,771.6 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our income from equity affiliates included in each of our reporting segments was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Subsea $ 23.3 $ 15.7 $ 49.5 $ 52.0 Onshore/Offshore 2.6 0.7 4.5 18.6 Income from equity affiliates $ 25.9 $ 16.4 $ 54.0 $ 70.6 Summarized financial information for our equity method investments is presented below: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Revenue $ 624.2 $ 250.7 $ 1,693.4 $ 792.8 Gross profit 76.6 51.7 167.4 163.0 Net income (loss) 46.1 34.2 (60.9 ) 97.0 (in millions) September 30, December 31, 2018 Current assets $ 1,498.2 $ 1,217.0 Noncurrent assets 4,364.8 4,026.7 Current liabilities 1,740.7 1,511.9 Noncurrent liabilities 1,475.9 1,177.2 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Receivables [Table Text Block] | Trade receivables consisted of receivables due from following related parties: (In millions) September 30, 2019 December 31, 2018 TP JGC Coral France SNC $ 38.9 $ 31.6 TTSJV WLL 27.4 — Technip Odebrecht PLSV CV 11.3 10.9 Anadarko Petroleum Company 4.5 4.9 Others 11.2 14.3 Total trade receivables $ 93.3 $ 61.7 |
Related Party Transactions Payables [Table Text Block] | Trade payables consisted of payables due to following related parties: (In millions) September 30, 2019 December 31, 2018 Chiyoda $ 25.3 $ 70.0 JGC Corporation 15.0 69.5 IFP Energies nouvelles 1.2 2.4 Dofcon Navegacao 0.2 2.5 Anadarko Petroleum Company 0.1 0.7 Magma Global Limited — 0.6 Others 5.0 2.9 Total trade payables $ 46.8 $ 148.6 |
Related Party Transactions Revenue and Expenses, Details [Table Text Block] | Revenue consisted of amount from following related parties: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 TTSJV W.L.L. $ 27.9 $ — $ 107.4 $ — TP JGC Coral France SNC 17.7 26.4 95.4 87.8 Anadarko Petroleum Company 26.3 33.6 67.1 109.1 Techdof Brasil AS 5.2 — 8.5 — Dofcon Navegacao 1.4 — 7.1 — JGC Corporation 0.4 — 6.4 — Technip Odebrecht PLSV CV 2.1 — 6.1 — Storengy 3.7 — 5.0 — Altus Intervention 3.9 — 3.9 — Others 3.7 12.8 11.6 28.7 Total revenue $ 92.3 $ 72.8 $ 318.5 $ 225.6 Expenses consisted of amount to following related parties: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Chiyoda $ 7.7 $ 3.2 $ 25.3 $ 14.3 JGC Corporation 1.0 19.6 19.9 39.2 Serimax Holdings SAS — — 17.7 — Arkema S.A. 6.4 — 16.2 — Magma Global Limited — — 3.2 — IFP Energy nouvelles 1.8 0.8 2.8 3.1 Creowave OY 2.0 — 2.0 — Amaja Oil 1.9 — 1.9 — Jumbo Shipping — — 1.8 — Altus Intervention 1.4 — 1.4 — Competentia 0.8 — 1.3 — Others 6.8 6.5 14.1 10.2 Total expenses $ 29.8 $ 30.1 $ 107.6 $ 66.8 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | DEBT Long-term debt consisted of the following: (In millions) September 30, December 31, Revolving credit facility $ — $ — Bilateral credit facilities — — Commercial paper 1,639.7 1,916.1 Synthetic bonds due 2021 476.1 490.9 3.45% Senior Notes due 2022 500.0 500.0 5.00% 2010 Private placement notes due 2020 218.2 229.0 3.40% 2012 Private placement notes due 2022 163.6 171.8 3.15% 2013 Private placement notes due 2023 141.8 148.9 3.15% 2013 Private placement notes due 2023 136.4 143.1 4.00% 2012 Private placement notes due 2027 81.8 85.9 4.00% 2012 Private placement notes due 2032 109.1 114.5 3.75% 2013 Private placement notes due 2033 109.1 114.5 Bank borrowings 312.1 265.2 Other 29.6 23.2 Unamortized issuing fees (9.3 ) (11.4 ) Total debt 3,908.2 4,191.7 Less: current borrowings 299.4 67.4 Long-term debt $ 3,608.8 $ 4,124.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated other comprehensive loss | Accumulated other comprehensive income (loss) consisted of the following: (In millions) Foreign Currency Hedging Defined Pension Accumulated Other Accumulated Other December 31, 2018 $ (1,234.4 ) $ (32.9 ) $ (92.4 ) $ (1,359.7 ) $ (4.0 ) Other comprehensive income (loss) before reclassifications, net of tax (40.7 ) (32.1 ) 1.4 (71.4 ) (3.1 ) Reclassification adjustment for net losses (gains) included in net income (loss), net of tax — (10.7 ) 2.3 (8.4 ) — Other comprehensive income (loss), net of tax (40.7 ) (42.8 ) 3.7 (79.8 ) (3.1 ) September 30, 2019 $ (1,275.1 ) $ (75.7 ) $ (88.7 ) $ (1,439.5 ) $ (7.1 ) |
Reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Comprehensive Loss Affected Line Item in the Condensed Consolidated Statements of Income Gains on foreign currency translation $ — $ 41.1 $ — $ 41.1 Other income (expense), net Gains (losses) on hedging instruments Foreign exchange contracts $ (3.1 ) $ (0.8 ) $ (15.6 ) $ 2.8 Revenue 1.6 1.1 6.5 6.2 Cost of sales — (0.1 ) 0.1 (0.1 ) Selling, general and administrative expense 23.3 4.8 21.9 0.1 Other income (expense), net 21.8 5.0 12.9 9.0 Income (loss) before income taxes 4.7 1.2 2.2 1.8 Provision for income taxes (Note 17) $ 17.1 $ 3.8 $ 10.7 $ 7.2 Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) (1.0 ) (0.3 ) (2.7 ) (0.6 ) (a) (1.0 ) (0.3 ) (2.7 ) (0.6 ) Income (loss) before income taxes (0.1 ) — (0.4 ) — Provision for income taxes (Note 17) $ (0.9 ) $ (0.3 ) $ (2.3 ) $ (0.6 ) Net income (loss) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Impairment, restructuring and other expense | Impairment, restructuring and other expenses were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Subsea $ 131.2 $ 5.0 $ 138.0 $ 19.1 Onshore/Offshore 5.2 (0.2 ) 11.1 (5.8 ) Surface Technologies 0.7 1.3 3.4 8.0 Corporate and other 3.2 3.6 13.5 11.3 Total impairment, restructuring and other expenses $ 140.3 $ 9.7 $ 166.0 $ 32.6 |
Commitments And Contingent Li_2
Commitments And Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of guarantor obligations | Guarantees consisted of the following: (In millions) September 30, December 31, Financial guarantees (a) $ 924.2 $ 750.4 Performance guarantees (b) 4,773.1 4,047.6 Maximum potential undiscounted payments $ 5,697.3 $ 4,798.0 (a) 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 there is a failure to fulfill our financial obligations. (b) 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. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | At September 30, 2019 , we held the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Euro 987.4 1,077.2 Brazilian real 634.2 152.3 British pound 291.1 358.3 Norwegian krone 1,525.1 168.1 Malaysian ringgit 382.0 91.2 Singapore dollar 90.6 65.5 Japanese yen 4,155.0 38.5 Australian dollar 165.1 111.6 Mexican peso (300.0 ) (15.2 ) Canadian dollar (83.3 ) (63.0 ) U.S. dollar (1,264.0 ) (1,264.0 ) Foreign exchange rate instruments embedded in purchase and sale contracts - The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or comply with government restrictions on the currency used to purchase goods in certain countries. At September 30, 2019 , our portfolio of these instruments included the following material net positions: Net Notional Amount Bought (Sold) (In millions) USD Equivalent Brazilian real 6.6 1.6 Euro (4.9 ) (5.3 ) U.S. dollar 2.8 2.8 |
Schedule of fair value of derivative instruments | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets: September 30, 2019 December 31, 2018 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 97.5 $ 217.6 $ 83.8 $ 127.7 Long-term - Derivative financial instruments 30.4 92.3 9.0 35.6 Total derivatives designated as hedging instruments 127.9 309.9 92.8 163.3 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments 8.7 8.7 11.9 10.7 Long-term - Derivative financial instruments — — 0.1 0.1 Total derivatives not designated as hedging instruments 8.7 8.7 12.0 10.8 Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium 15.7 — 9.2 — Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives — 15.7 — 9.2 Total derivatives $ 152.3 $ 334.3 $ 114.0 $ 183.3 |
Schedule of location of gains (losses) related to derivative instruments designated as cash flow hedges | 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 Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Foreign exchange contracts $ (47.0 ) $ 16.5 $ (44.0 ) $ (24.0 ) |
Schedule of gain (loss) recognized in income related to hedges and derivatives | The following represents the effect of cash flow hedge accounting on the consolidated statements of income for the three and nine months ended September 30, 2019 and 2018 : (In millions) Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling, Other income (expense), net Revenue Cost of sales Selling, Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income $ (3.1 ) $ 1.6 $ — $ 23.3 $ (0.8 ) $ 1.1 $ (0.1 ) $ 4.8 Amounts excluded from effectiveness testing 2.6 (2.9 ) — (8.6 ) (5.7 ) 6.1 — (26.6 ) Total cash flow hedge gain (loss) recognized in income (0.5 ) (1.3 ) — 14.7 (6.5 ) 7.2 (0.1 ) (21.8 ) Gain (loss) recognized in income on derivatives not designated as hedging instruments (0.1 ) 0.1 — (19.4 ) — 0.2 — (5.3 ) Total $ (0.6 ) $ (1.2 ) $ — $ (4.7 ) $ (6.5 ) $ 7.4 $ (0.1 ) $ (27.1 ) (In millions) Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling, Other income (expense), net Revenue Cost of sales Selling, Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income (loss) $ (15.6 ) $ 6.5 $ 0.1 $ 21.9 $ 2.8 $ 6.2 $ (0.1 ) $ 0.1 Amounts excluded from effectiveness testing 1.5 (5.1 ) — (30.7 ) (4.9 ) 4.1 — (23.4 ) Total cash flow hedge gain (loss) recognized in income (14.1 ) 1.4 0.1 (8.8 ) (2.1 ) 10.3 (0.1 ) (23.3 ) Gain (loss) recognized in income on derivatives not designated as hedging instruments (1.2 ) — — (14.4 ) (0.9 ) 0.4 — (6.9 ) Total $ (15.3 ) $ 1.4 $ 0.1 $ (23.2 ) $ (3.0 ) $ 10.7 $ (0.1 ) $ (30.2 ) |
Schedule of derivative assets, gross and net | The following tables present both gross information and net information of recognized derivative instruments: September 30, 2019 December 31, 2018 (In millions) Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Derivative assets $ 152.3 $ (136.4 ) $ 15.9 $ 114.0 $ (105.9 ) $ 8.1 Derivative liabilities $ 334.3 $ (136.4 ) $ 197.9 $ 183.3 $ (105.9 ) $ 77.4 |
Schedule of derivative liabilities, gross and net | The following tables present both gross information and net information of recognized derivative instruments: September 30, 2019 December 31, 2018 (In millions) Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, But Permitted Under Master Netting Agreements Net Amount Derivative assets $ 152.3 $ (136.4 ) $ 15.9 $ 114.0 $ (105.9 ) $ 8.1 Derivative liabilities $ 334.3 $ (136.4 ) $ 197.9 $ 183.3 $ (105.9 ) $ 77.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 December 31, 2018 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Equity securities (a) $ 50.7 $ 50.7 $ — $ — $ 40.4 $ 40.4 $ — $ — Money market fund 1.6 — 1.6 — 1.6 — 1.6 — Stable value fund (b) 2.2 — — — 0.5 — — — Held-to-maturity debt securities 60.0 — 60.0 — 20.0 — 20.0 — Derivative financial instruments Synthetic bonds - call option premium 15.7 — 15.7 — 9.2 — 9.2 — Foreign exchange contracts 136.6 — 136.6 — 104.8 — 104.8 — Assets held for sale 17.6 — — 17.6 9.6 — — 9.6 Total assets $ 284.4 $ 50.7 $ 213.9 $ 17.6 $ 186.1 $ 40.4 $ 135.6 $ 9.6 Liabilities Redeemable financial liability $ 288.8 $ — $ — $ 288.8 $ 408.5 $ — $ — $ 408.5 Derivative financial instruments Synthetic bonds - embedded derivatives 15.7 — 15.7 — 9.2 — 9.2 — Foreign exchange contracts 318.6 — 318.6 — 174.1 — 174.1 — Liabilities held for sale 21.0 — — 21.0 16.2 — — 16.2 Total liabilities $ 644.1 $ — $ 334.3 $ 309.8 $ 608.0 $ — $ 183.3 $ 424.7 (a) Includes fixed income and other investments measured at fair value. (b) 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. |
Schedule of changes in fair value of level 3 mandatorily redeemable financial liabilities | Change in the fair value of our Level 3 mandatorily redeemable financial liability is recorded as interest expense on the consolidated statements of income and is presented below: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Balance at beginning of period $ 412.8 $ 308.1 $ 408.5 $ 312.0 Less: Gains (losses) recognized in net interest expense (99.1 ) (93.2 ) (324.0 ) (213.5 ) Less: Settlements 223.1 — 443.7 124.2 Balance at end of period $ 288.8 $ 401.3 $ 288.8 $ 401.3 |
Basis Of Presentation and Sig_4
Basis Of Presentation and Significant Accounting Policies Restatement (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenues | $ 3,335.1 | $ 3,143.8 | $ 9,682.3 | $ 9,229.9 |
Costs and Expenses | 3,221 | 2,863.7 | 9,119.8 | 8,527.2 |
Net income (loss) attributable to TechnipFMC plc | $ (119.1) | $ 136.9 | $ (1.2) | $ 337.7 |
Basic (usd per share) | $ (0.27) | $ 0.30 | $ 0.73 | |
Diluted (usd per share) | $ (0.27) | $ 0.30 | $ 0 | $ 0.73 |
Basic (in shares) | 446.9 | 454.5 | 448.6 | 460 |
Diluted (in shares) | 446.9 | 459 | 448.6 | 464 |
Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenues | $ 3,143.8 | $ 9,229.9 | ||
Costs and Expenses | 2,863.7 | 8,527.2 | ||
Net income (loss) attributable to TechnipFMC plc | $ 136.9 | $ 337.7 | ||
Basic (usd per share) | $ 0.30 | $ 0.73 | ||
Diluted (usd per share) | $ 0.30 | $ 0.73 | ||
Basic (in shares) | 454.5 | 460 | ||
Diluted (in shares) | 459 | 464 | ||
Services | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | $ 2,409.6 | $ 2,276.9 | $ 7,009.5 | $ 6,616.9 |
Cost of goods and services sold | 1,926 | 1,860.2 | 5,520.1 | 5,488.4 |
Services | Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | 2,487.9 | 7,159.2 | ||
Cost of goods and services sold | 2,046.6 | 5,846 | ||
Services | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | (211) | (542.3) | ||
Cost of goods and services sold | (186.4) | (357.6) | ||
Products | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | 839.8 | 806.2 | 2,471.9 | 2,449.6 |
Cost of goods and services sold | $ 743.9 | 667.4 | $ 2,237.2 | 1,917.5 |
Products | Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | 595.2 | 1,907.3 | ||
Cost of goods and services sold | 481 | 1,559.9 | ||
Products | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Revenue | 211 | 542.3 | ||
Cost of goods and services sold | $ 186.4 | $ 357.6 |
Planned spin-off transaction (N
Planned spin-off transaction (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Spin-off [Abstract] | ||||
Separation costs | $ 9.4 | $ 0 | $ 9.4 | $ 0 |
Business Combination Transact_2
Business Combination Transactions (Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Business Acquisition | |||
Gain (Loss) on Disposition of Stock in Subsidiary | $ 27.8 | ||
Island Offshore Subsea AS | |||
Business Acquisition | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Cash consideration | $ 42.4 | ||
Goodwill, acquired | $ 85 | ||
Series of individually immaterial business acquisitions | |||
Business Acquisition | |||
Consideration transferred | $ 61 |
Lease Additional Information (N
Lease Additional Information (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2016 | ||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease liability | $ 967.7 | [1] | $ 1,189.6 | |||
Operating lease right-of-use assets | 904.5 | $ 1,115.5 | $ 0 | |||
Adoption of accounting standards | 1.8 | $ (91.4) | ||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ 42 | |||||
Other Liabilities, Current | $ 1,471 | 1,771.6 | ||||
Short-term lease, lease term | 12 months | |||||
Operating Lease, Liability, Current | $ 224.3 | 0 | ||||
Retained earnings | 901.6 | $ 1,072.2 | ||||
Lease Agreements | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Unrecorded Unconditional Purchase Obligation | $ 236.2 | |||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years | |||||
Other Assets | Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Renewal Term | 60 days | |||||
Other Assets | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Renewal Term | 5 years | |||||
Commercial Real Estate | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lessee, Operating Lease, Renewal Term | 15 years | |||||
Other Current Liabilities | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Other Liabilities, Current | 1,044.4 | |||||
Other Liabilities | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Other Liabilities | 131.3 | |||||
Retained Earnings | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Retained earnings | 3,231.4 | |||||
Other Current Liabilities | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | 5 | |||||
Other Liabilities | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ 37 | |||||
Retained Earnings | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Adoption of accounting standards | $ 1.8 | $ (91.5) | ||||
[1] | Includes the current portion of $224.3 million for operating leases. |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases expenses [Abstract] | ||
Operating lease cost including variable costs | $ 90 | $ 273.4 |
Short-term lease costs | 4.1 | 19 |
Less: sublease income | 2.5 | 6.5 |
Net lease cost | $ 91.6 | $ 285.9 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Supplemental Cash Flow Information [Abstract] | |
Operating cash flows from operating leases | $ 289.4 |
Operating leases | $ 36.3 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) | Sep. 30, 2019 |
Supplemental Balance Sheet Information [Abstract] | |
Operating leases, Weighted Average Remaining Lease Term | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.40% |
Leases Maturities of lease liab
Leases Maturities of lease liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Maturities of lease liabilities [Line Items] | |||||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 305 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 230.2 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 129.1 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 101.2 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 77.2 | ||||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 334.6 | ||||
Lessee, Operating Lease, Liability, Payments, Due | 1,177.3 | ||||
Lessee, Operating Lease, Imputed interest | [1] | 209.6 | |||
Operating lease liability | $ 967.7 | [2] | $ 1,189.6 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 329.8 | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | 286.1 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | 192.3 | ||||
Operating Leases, Future Minimum Payments, Due in Four Years | 123.8 | ||||
Operating Leases, Future Minimum Payments, Due in Five Years | 102.1 | ||||
Operating Leases, Future Minimum Payments, Due Thereafter | 485.6 | ||||
Operating Leases, Future Minimum Payments Due | 1,519.7 | ||||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 25.6 | ||||
Operating Leases, Future Minimum Payments Due, Net of Future Sublease Rental Income | $ 1,494.1 | ||||
[1] | Calculated using the interest rate for each lease. | ||||
[2] | Includes the current portion of $224.3 million for operating leases. |
Lease Revenue (Details)
Lease Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases Revenue [Abstract] | ||
Operating lease revenue including variable revenue | $ 85.7 | $ 200.9 |
Leases Maturities of Lease Rece
Leases Maturities of Lease Receivables (Details) $ in Millions | Sep. 30, 2019USD ($) |
Maturities of lease receivables [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year | $ 6.2 |
Lessor, Operating Lease, Payments to be Received, Two Years | 14.9 |
Lessor, Operating Lease, Payments to be Received, Three Years | 17.5 |
Lessor, Operating Lease, Payments to be Received, Four Years | 18 |
Lessor, Operating Lease, Payments to be Received, Five Years | 2.5 |
Lessor, Operating Lease, Payments to be Received, Thereafter | 0 |
Lessor, Operating Lease, Payments to be Received | $ 59.1 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue, Geographical (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||||
Disaggregation of Revenue [Line Items] | ||||||||
Lease revenue | $ 85.7 | $ 60.7 | $ 200.9 | $ 163.4 | ||||
Total revenue | 3,335.1 | 3,143.8 | 9,682.3 | 9,229.9 | ||||
Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 2,409.6 | 2,276.9 | 7,009.5 | 6,616.9 | ||||
Products | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 839.8 | 806.2 | 2,471.9 | 2,449.6 | ||||
Subsea | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 1,299.7 | [1] | 1,178.3 | [1] | 3,945.6 | 3,516.7 | ||
Lease revenue | [2] | 42.5 | 30.8 | 90.6 | 90 | |||
Subsea | Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 743.8 | 674.2 | [1] | 2,359.6 | 1,983.6 | [1] | ||
Subsea | Products | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 555.9 | 504.1 | [1] | 1,586 | 1,533.1 | [1] | ||
Subsea | Europe, Russia, Central Asia | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 390.8 | 421.4 | 1,250 | 1,136.3 | ||||
Subsea | America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 513.1 | 437.4 | 1,232 | 1,219.3 | ||||
Subsea | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 171 | 118.2 | 448.4 | 368.1 | ||||
Subsea | Africa | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 143.6 | 162.5 | 663.2 | 703.9 | ||||
Subsea | Middle East | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 81.2 | 38.8 | 352 | 89.1 | ||||
Onshore/Offshore | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 1,596.3 | 1,532.5 | 4,436.4 | 4,448.3 | ||||
Lease revenue | [2] | 0 | 0 | 0 | 0 | |||
Onshore/Offshore | Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 1,596.3 | 1,532.5 | 4,436.4 | 4,448.3 | ||||
Onshore/Offshore | Products | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 0 | 0 | 0 | 0 | ||||
Onshore/Offshore | Europe, Russia, Central Asia | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 682.4 | 831.5 | 1,975.2 | 2,537.9 | ||||
Onshore/Offshore | America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 156.9 | 89.4 | 514.2 | 253 | ||||
Onshore/Offshore | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 311.7 | 300.6 | 889.1 | 906.5 | ||||
Onshore/Offshore | Africa | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 158.6 | 54.8 | 330.1 | 202.3 | ||||
Onshore/Offshore | Middle East | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 286.7 | 256.2 | 727.8 | 548.6 | ||||
Surface Technologies | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 353.4 | 372.3 | 1,099.4 | 1,101.5 | ||||
Lease revenue | [2] | 43.2 | 29.9 | 110.3 | 73.4 | |||
Surface Technologies | Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 69.5 | 70.2 | 213.5 | 185 | ||||
Surface Technologies | Products | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 283.9 | 302.1 | 885.9 | 916.5 | ||||
Surface Technologies | Europe, Russia, Central Asia | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 55.5 | 66 | 171.3 | 172.5 | ||||
Surface Technologies | America | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 171 | 208.3 | 564.1 | 653.3 | ||||
Surface Technologies | Asia Pacific | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 50.3 | 34.1 | 139.4 | 85.9 | ||||
Surface Technologies | Africa | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 14.9 | 16.3 | 41.1 | 43.4 | ||||
Surface Technologies | Middle East | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 61.7 | 47.6 | 183.5 | 146.4 | ||||
Restatement Adjustment | Services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | (211) | (542.3) | ||||||
Restatement Adjustment | Products | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue | 211 | 542.3 | ||||||
Operating Segments | Subsea | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total revenue | 1,342.2 | 1,209.1 | 4,036.2 | 3,606.7 | ||||
Operating Segments | Onshore/Offshore | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total revenue | 1,596.3 | 1,532.5 | 4,436.4 | 4,448.3 | ||||
Operating Segments | Surface Technologies | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total revenue | $ 396.6 | $ 402.2 | $ 1,209.7 | $ 1,174.9 | ||||
[1] | We revised the condensed consolidated statement of operations to correct the classification of service revenue and product revenue in the amount of $211.0 million and $542.3 million for the three and nine months ended September 30, 2018 , respectively. See Note 1 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the revision. | |||||||
[2] | Represents revenue not subject to ASC Topic 606. See Note 5 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to lease revenue. |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract assets | $ 1,503 | $ 1,503 | $ 1,295 | ||
Contract liabilities | 4,122.5 | 4,122.5 | 4,085.1 | ||
Net contract assets (liabilities) | (2,619.5) | (2,619.5) | $ (2,790.1) | ||
Contract assets, increase (decrease) | $ 208 | ||||
Contract with Customer, Asset, Net, Current, Increase (Decrease), Percent | 16.10% | ||||
Contract (liabilities), (increase) decrease | $ (37.4) | ||||
Contract with Customer Liability, Current, Increase (Decrease), Percent | 0.90% | ||||
Net contract assets (liabilities), increase (decrease) | $ 170.6 | ||||
Contract Assets (Liabilities), Current, Net, Increase (Decrease), Percent | 6.10% | ||||
Contract with Customer, Liability, Revenue Recognized | 503.6 | $ 678.1 | $ 1,984.4 | $ 2,115.8 | |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 281.7 | $ 182.5 | $ 775.1 | $ 489.2 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 3,767.3 |
Revenue, remaining performance obligation, percentage | 15.60% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,425.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 | Onshore/Offshore | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 2,084.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 257.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 9,676.9 |
Revenue, remaining performance obligation, percentage | 84.40% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4,251 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | Onshore/Offshore | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 5,254.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 171.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 10,671.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 2,979.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | Onshore/Offshore | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 7,691.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Business Segments (Schedule Of
Business Segments (Schedule Of Segment Revenue And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting Information | |||||
Revenue | $ 3,335.1 | $ 3,143.8 | $ 9,682.3 | $ 9,229.9 | |
Total segment operating profit | 211.1 | 375 | 821.4 | 961.6 | |
Corporate expense | [1] | (128.8) | (68.1) | (361.4) | (200.9) |
Net interest expense | 116.5 | 106 | 345.3 | 244.3 | |
Total corporate items | (245.3) | (174.1) | (706.7) | (445.2) | |
Income (loss) before income taxes | [2] | (34.2) | 200.9 | 114.7 | 516.4 |
Operating Segments | Subsea | |||||
Segment Reporting Information | |||||
Revenue | 1,342.2 | 1,209.1 | 4,036.2 | 3,606.7 | |
Total segment operating profit | (79.6) | 79.7 | 65 | 210 | |
Operating Segments | Onshore/Offshore | |||||
Segment Reporting Information | |||||
Revenue | 1,596.3 | 1,532.5 | 4,436.4 | 4,448.3 | |
Total segment operating profit | 284.6 | 243.4 | 714.3 | 617.6 | |
Operating Segments | Surface Technologies | |||||
Segment Reporting Information | |||||
Revenue | 396.6 | 402.2 | 1,209.7 | 1,174.9 | |
Total segment operating profit | $ 6.1 | $ 51.9 | $ 42.1 | $ 134 | |
[1] | Corporate expense primarily includes corporate staff expenses, legal reserve, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, merger transaction, integration expenses, and separation expenses. | ||||
[2] | Includes amounts attributable to noncontrolling interests. |
Business Segments (Segment Oper
Business Segments (Segment Operating Capital Employed And Segment Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||
Total assets | $ 24,779.7 | $ 24,784.5 | |
Operating Segments | |||
Segment Reporting Information | |||
Total assets | 19,010.3 | 18,192.2 | |
Operating Segments | Subsea | |||
Segment Reporting Information | |||
Total assets | 11,817 | 11,037.8 | |
Operating Segments | Onshore/Offshore | |||
Segment Reporting Information | |||
Total assets | 4,231.4 | 4,355.2 | |
Operating Segments | Surface Technologies | |||
Segment Reporting Information | |||
Total assets | 2,992.5 | 2,825.6 | |
Intercompany eliminations | |||
Segment Reporting Information | |||
Total assets | (30.6) | (26.4) | |
Corporate | |||
Segment Reporting Information | |||
Total assets | [1] | $ 5,769.4 | $ 6,592.3 |
[1] | Corporate includes cash, deferred income tax balances, legal provisions, property, plant and equipment not associated with a specific segment, pension assets, the fair value of derivative financial instruments, and LIFO adjustments. |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Number Of Shares Used For Basic And Diluted Earnings Per Share ("EPS") Calculation ) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Net income (loss) attributable to TechnipFMC plc | $ (119.1) | $ 136.9 | $ (1.2) | $ 337.7 |
Weighted average number of shares outstanding (in shares) | 446.9 | 454.5 | 448.6 | 460 |
Total shares and dilutive securities (in shares) | 446.9 | 459 | 448.6 | 464 |
Basic earnings per share attributable to TechnipFMC plc (usd per share) | $ (0.27) | $ 0.30 | $ 0.73 | |
Diluted earnings per share attributable to technipFMC plc (usd per share) | $ (0.27) | $ 0.30 | $ 0 | $ 0.73 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Dilutive effect of share-based payment arrangements (in shares) | 1.2 | 1 | ||
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0.1 | 0 | 0.1 |
Performance Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Dilutive effect of share-based payment arrangements (in shares) | 3.2 | 2.9 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 366.9 | $ 366.4 |
Work in process | 250.5 | 146.4 |
Finished goods | 794.5 | 738.4 |
Inventories, net | $ 1,411.9 | $ 1,251.2 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Value-added tax receivables | $ 389.5 | $ 305.8 |
Prepaid expenses | 96.9 | 91.3 |
Other taxes receivables | 87.4 | 85 |
Sundry receivables | 81.5 | 87 |
Asset held for sale | 17.6 | 9.6 |
Other | 71.3 | 76.9 |
Total other current assets | $ 744.2 | $ 655.6 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Warranty accruals and project contingencies | $ 292.4 | $ 418.2 |
Value added tax and other taxes payable | 219.8 | 214.3 |
Legal provisions | 214 | 418.2 |
Redeemable financial liability | 196.3 | 173 |
Provisions | 103.5 | 135.5 |
Social security liability | 101.1 | 112.3 |
Compensation accrual | 71.7 | 87.3 |
Liabilities held for sale | 21 | 16.2 |
Current portion of accrued pension and other post-retirement benefits | 12.8 | 14 |
Other accrued liabilities | 238.4 | 182.6 |
Total other current liabilities | $ 1,471 | $ 1,771.6 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments | |||||
Income from equity affiliates | $ 25.9 | $ 16.4 | $ 54 | $ 70.6 | |
Revenue | 624.2 | 250.7 | 1,693.4 | 792.8 | |
Gross profit | 76.6 | 51.7 | 167.4 | 163 | |
Net income (loss) | 46.1 | 34.2 | (60.9) | 97 | |
Current assets | 1,498.2 | 1,498.2 | $ 1,217 | ||
Noncurrent assets | 4,364.8 | 4,364.8 | 4,026.7 | ||
Current liabilities | 1,740.7 | 1,740.7 | 1,511.9 | ||
Noncurrent liabilities | 1,475.9 | 1,475.9 | $ 1,177.2 | ||
Subsea | |||||
Schedule of Equity Method Investments | |||||
Income from equity affiliates | 23.3 | 15.7 | 49.5 | 52 | |
Onshore/Offshore | |||||
Schedule of Equity Method Investments | |||||
Income from equity affiliates | $ 2.6 | $ 0.7 | $ 4.5 | $ 18.6 |
Related Party Transactions Sche
Related Party Transactions Schedule of Related Party Transactions (Tables) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Trade receivables | $ 93.3 | $ 93.3 | $ 61.7 | ||
Trade payables | 46.8 | 46.8 | 148.6 | ||
Revenue | 92.3 | $ 72.8 | 318.5 | $ 225.6 | |
Expenses | 29.8 | 30.1 | 107.6 | 66.8 | |
TP JGC Coral France SNC | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade receivables | 38.9 | 38.9 | 31.6 | ||
Revenue | 17.7 | 26.4 | 95.4 | 87.8 | |
TTSJV W.L.L. | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade receivables | 27.4 | 27.4 | 0 | ||
Revenue | 27.9 | 0 | 107.4 | 0 | |
Technip Odebrecht PLSV CV | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade receivables | 11.3 | 11.3 | 10.9 | ||
Revenue | 2.1 | 0 | 6.1 | 0 | |
Storengy | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 3.7 | 5 | |||
Serimax Holdings SAS | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 0 | 17.7 | 0 | ||
Chiyoda | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 25.3 | 25.3 | 70 | ||
Chiyoda | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 7.7 | 3.2 | 25.3 | 14.3 | |
JGC Corporation | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 15 | 15 | 69.5 | ||
JGC Corporation | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 0.4 | 0 | 6.4 | 0 | |
Expenses | 1 | 19.6 | 19.9 | 39.2 | |
Arkema S.A. | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 6.4 | 0 | 16.2 | 0 | |
IFP Energies nouvelles | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 1.2 | 1.2 | 2.4 | ||
Expenses | 1.8 | 0.8 | 2.8 | 3.1 | |
Creowave OY | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 2 | 2 | |||
Amaja Oil | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 1.9 | 1.9 | |||
Jumbo Shipping | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 1.8 | ||||
Altus Intervention | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 3.9 | 0 | 3.9 | 0 | |
Expenses | 1.4 | 1.4 | |||
Competentia | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 0.8 | 1.3 | |||
Dofcon Navegacao | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 0.2 | 0.2 | 2.5 | ||
Revenue | 1.4 | 0 | 7.1 | 0 | |
Magma Global Limited | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 0.6 | ||||
Magma Global Limited | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Expenses | 0 | 3.2 | 0 | ||
Anadarko Petroleum Company | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Trade payables | 0.1 | 0.1 | 0.7 | ||
Revenue | 26.3 | 33.6 | 67.1 | 109.1 | |
Anadarko Petroleum Company | Board of Directors Chairman | |||||
Related Party Transaction [Line Items] | |||||
Trade receivables | 4.5 | 4.5 | 4.9 | ||
Techdof Brasil AS | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 5.2 | 8.5 | 0 | ||
Others | Other Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Trade receivables | 11.2 | 11.2 | 14.3 | ||
Trade payables | 5 | 5 | $ 2.9 | ||
Revenue | 3.7 | 12.8 | 11.6 | 28.7 | |
Expenses | $ 6.8 | $ 6.5 | $ 14.1 | $ 10.2 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Note receivables | $ 79 | $ 130 |
Dofcon Brasil AS | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Note receivables | $ 76.3 | $ 119.9 |
Debt (Schedule Of Long-Term Deb
Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Unamortized issuing fees | $ (9.3) | $ (11.4) |
Total debt | 3,908.2 | 4,191.7 |
Less: current borrowings | 299.4 | 67.4 |
Long-term debt | 3,608.8 | 4,124.3 |
Line of Credit | Revolving credit facility | ||
Debt Instrument | ||
Long-term debt, gross | 0 | 0 |
Line of Credit | Bilateral credit facilities | ||
Debt Instrument | ||
Long-term debt, gross | 0 | 0 |
Commercial paper | ||
Debt Instrument | ||
Long-term debt, gross | 1,639.7 | 1,916.1 |
Synthetic bonds due 2021 | ||
Debt Instrument | ||
Long-term debt, gross | $ 476.1 | $ 490.9 |
Senior Notes | 3.45% Senior Notes due 2022 | ||
Debt Instrument | ||
Interest rate, stated percentage | 3.45% | 3.45% |
Long-term debt, gross | $ 500 | $ 500 |
Private Placement Notes | 5.00% 2010 Private placement notes due 2020 | ||
Debt Instrument | ||
Interest rate, stated percentage | 5.00% | 5.00% |
Long-term debt, gross | $ 218.2 | $ 229 |
Private Placement Notes | 3.40% 2012 Private placement notes due 2022 | ||
Debt Instrument | ||
Interest rate, stated percentage | 3.40% | 3.40% |
Long-term debt, gross | $ 163.6 | $ 171.8 |
Private Placement Notes | 3.15% 2013 Private placement notes due 2023 | ||
Debt Instrument | ||
Interest rate, stated percentage | 3.15% | 3.15% |
Long-term debt, gross | $ 141.8 | $ 148.9 |
Private Placement Notes | 3.15% 2013 Private placement notes due 2023 | ||
Debt Instrument | ||
Interest rate, stated percentage | 3.15% | 3.15% |
Long-term debt, gross | $ 136.4 | $ 143.1 |
Private Placement Notes | 4.00% 2012 Private placement notes due 2027 | ||
Debt Instrument | ||
Interest rate, stated percentage | 4.00% | 4.00% |
Long-term debt, gross | $ 81.8 | $ 85.9 |
Private Placement Notes | 4.00% 2012 Private placement notes due 2032 | ||
Debt Instrument | ||
Interest rate, stated percentage | 4.00% | 4.00% |
Long-term debt, gross | $ 109.1 | $ 114.5 |
Private Placement Notes | 3.75% 2013 Private placement notes due 2033 | ||
Debt Instrument | ||
Interest rate, stated percentage | 3.75% | 3.75% |
Long-term debt, gross | $ 109.1 | $ 114.5 |
Bank borrowings | ||
Debt Instrument | ||
Long-term debt, gross | 312.1 | 265.2 |
Other | ||
Debt Instrument | ||
Long-term debt, gross | $ 29.6 | $ 23.2 |
Debt (Bilateral Credit Faciliti
Debt (Bilateral Credit Facilities) (Details) - Line of Credit - Bilateral Credit Facility | Sep. 30, 2019EUR (€) |
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 | 60,000,000 |
Bilateral Credit Facility Expiring in May 2021 | |
Line of Credit Facility | |
Maximum borrowing capacity | € 100,000,000 |
Debt (Commercial Paper) (Detail
Debt (Commercial Paper) (Details) - Commercial Paper € in Billions, $ in Billions | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) |
U.S. dollar | ||
Debt Instrument | ||
Maximum borrowing capacity | $ | $ 1.5 | |
Long term debt, weighted average interest rate | 2.52% | 2.52% |
Euro | ||
Debt Instrument | ||
Maximum borrowing capacity | € | € 1 | |
Long term debt, weighted average interest rate | (0.26%) | (0.26%) |
Debt (Other long-term debt) (De
Debt (Other long-term debt) (Details) - Sale Leaseback Transaction [Member] $ in Millions | Sep. 30, 2019USD ($) |
Sale Leaseback Transaction [Line Items] | |
Long-term debt, gross | $ 96.2 |
Sale Leaseback Transaction, Historical Cost | $ 116.8 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 11, 2018 | |
Stockholders' Equity Note [Abstract] | |||||
Dividends paid | $ 174,700,000 | $ 179,200,000 | |||
Stock repurchase program, authorized amount | $ 300,000,000 | ||||
Shares repurchased (in shares) | 4 | ||||
Shares repurchased, value | $ 2,600,000 | $ 142,200,000 | $ 92,700,000 | $ 384,200,000 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 10,380.4 | $ 12,965.9 | $ 10,388.9 | $ 13,367.4 |
Other comprehensive loss | (95.6) | (134) | (82.9) | (309.4) |
Ending balance | 10,123.8 | $ 12,782.3 | 10,123.8 | $ 12,782.3 |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1,234.4) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (40.7) | |||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 0 | |||
Other comprehensive loss | (40.7) | |||
Ending balance | (1,275.1) | (1,275.1) | ||
Hedging | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (32.9) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (32.1) | |||
Reclassification adjustment for net losses (gains) included in net income, net of tax | (10.7) | |||
Other comprehensive loss | (42.8) | |||
Ending balance | (75.7) | (75.7) | ||
Defined Pension and Other Post-Retirement Benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (92.4) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 1.4 | |||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 2.3 | |||
Other comprehensive loss | 3.7 | |||
Ending balance | (88.7) | (88.7) | ||
Accumulated Other Comprehensive Loss attributable to TechnipFMC plc | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1,359.7) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (71.4) | |||
Reclassification adjustment for net losses (gains) included in net income, net of tax | (8.4) | |||
Other comprehensive loss | (79.8) | |||
Ending balance | (1,439.5) | (1,439.5) | ||
Accumulated Other Comprehensive Loss attributable to Noncontrolling interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (4) | |||
Other comprehensive income (loss) before reclassifications, net of tax | (3.1) | |||
Reclassification adjustment for net losses (gains) included in net income, net of tax | 0 | |||
Other comprehensive loss | (3.1) | |||
Ending balance | $ (7.1) | $ (7.1) |
Stockholder's Equity (Reclassif
Stockholder's Equity (Reclassification out of Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Revenue | $ (3,335.1) | $ (3,143.8) | $ (9,682.3) | $ (9,229.9) | |
Selling, general and administrative expense | (298.1) | (250.6) | (919.7) | (835.1) | |
Other income (expense), net | (57.7) | 10.4 | (156.5) | (12.6) | |
Income (loss) before income taxes | [1] | (34.2) | 200.9 | 114.7 | 516.4 |
Provision for income taxes (Note 17) | 81.1 | 66.7 | 96.5 | 180.7 | |
Net income (loss) | (115.3) | 134.2 | 18.2 | 335.7 | |
Amount Reclassified out of Accumulated Other Comprehensive Loss | |||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Amortization of prior service credit (cost) | [2] | (1) | (0.3) | (2.7) | (0.6) |
Income (loss) before income taxes | (1) | (0.3) | (2.7) | (0.6) | |
Provision for income taxes (Note 17) | (0.1) | 0 | (0.4) | 0 | |
Net income (loss) | (0.9) | (0.3) | (2.3) | (0.6) | |
Amount Reclassified out of Accumulated Other Comprehensive Loss | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Other income (expense), net | 0 | 41.1 | 0 | 41.1 | |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | |||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Revenue | 3.1 | 0.8 | 15.6 | (2.8) | |
Cost of sales | 1.6 | 1.1 | 6.5 | 6.2 | |
Selling, general and administrative expense | 0 | (0.1) | 0.1 | (0.1) | |
Other income (expense), net | 23.3 | 4.8 | 21.9 | 0.1 | |
Income (loss) before income taxes | 21.8 | 5 | 12.9 | 9 | |
Provision for income taxes (Note 17) | 4.7 | 1.2 | 2.2 | 1.8 | |
Net income (loss) | $ 17.1 | $ 3.8 | $ 10.7 | $ 7.2 | |
[1] | Includes amounts attributable to noncontrolling interests. | ||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - TechnipFMC plc Incentive Award Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 11, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares authorized (in shares) | 24,100,000 | ||||
Stock-based compensation expense for nonvested stock units | $ 19.9 | $ 15.9 | $ 61.4 | $ 41.7 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring and Impairment | ||||
Impairment, restructuring and other expenses | $ 140.3 | $ 9.7 | $ 166 | $ 32.6 |
Other Asset Impairment Charges | 125.1 | |||
Subsea | ||||
Restructuring and Impairment | ||||
Impairment, restructuring and other expenses | 131.2 | 5 | 138 | 19.1 |
Onshore/Offshore | ||||
Restructuring and Impairment | ||||
Impairment, restructuring and other expenses | 5.2 | (0.2) | 11.1 | (5.8) |
Surface Technologies | ||||
Restructuring and Impairment | ||||
Impairment, restructuring and other expenses | 0.7 | 1.3 | 3.4 | 8 |
Corporate and other | ||||
Restructuring and Impairment | ||||
Impairment, restructuring and other expenses | $ 3.2 | $ 3.6 | $ 13.5 | $ 11.3 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Guarantor Obligations | |||
Litigation Settlement, Amount Awarded to Other Party | $ 301.3 | ||
Guarantor obligations, maximum exposure, undiscounted | 5,697.3 | $ 4,798 | |
Litigation Settlement, Expense | 5.1 | ||
Estimated Litigation Liability | $ 70 | ||
Indirect guarantee of indebtedness | |||
Guarantor Obligations | |||
Guarantor obligations, term of obligation | P5Y | ||
Financial guarantees | |||
Guarantor Obligations | |||
Guarantor obligations, maximum exposure, undiscounted | [1] | $ 924.2 | 750.4 |
Performance guarantees | |||
Guarantor Obligations | |||
Guarantor obligations, maximum exposure, undiscounted | [2] | $ 4,773.1 | $ 4,047.6 |
[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 there is a failure to fulfill our 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. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (237.10%) | 33.20% | 84.10% | 35.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash flow hedges of forecasted transactions, net of tax, in accumulated OCI gain (loss) | $ (75.7) | $ (33) |
Cash flow hedge gain (loss) expected to be reclassified within 12 months | $ (48) | |
Hedges maturity year | 2023 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of Notional Amounts Of Outstanding Derivative Positions) (Details) - Sep. 30, 2019 € in Millions, ¥ in Millions, £ in Millions, kr in Millions, RM in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | USD ($) | MYR (RM) | BRL (R$) | NOK (kr) | SGD ($) | EUR (€) | CAD ($) | GBP (£) | JPY (¥) | MXN ($) | AUD ($) |
Foreign Exchange Forward | Euro | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | $ 1,077.2 | € 987.4 | |||||||||
Foreign Exchange Forward | Brazilian real | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 152.3 | R$ 634.2 | |||||||||
Foreign Exchange Forward | British pound | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 358.3 | £ 291.1 | |||||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 168.1 | kr 1,525.1 | |||||||||
Foreign Exchange Forward | Malaysian ringgits | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 91.2 | RM 382 | |||||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 65.5 | $ 90.6 | |||||||||
Foreign Exchange Forward | Japanese yen | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 38.5 | ¥ 4,155 | |||||||||
Foreign Exchange Forward | Australian dollar | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 111.6 | $ 165.1 | |||||||||
Foreign Exchange Forward | Mexican peso | Notional Amount Sold | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 15.2 | $ 300 | |||||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Sold | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 63 | $ 83.3 | |||||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 1,264 | ||||||||||
Derivative financial instruments – Embedded Derivatives | Euro | Notional Amount Sold | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 5.3 | € 4.9 | |||||||||
Derivative financial instruments – Embedded Derivatives | Brazilian real | Notional Amount Sold | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | 1.6 | R$ 6.6 | |||||||||
Derivative financial instruments – Embedded Derivatives | U.S. dollar | Notional Amount Bought | |||||||||||
Derivative | |||||||||||
Derivative, notional amount | $ 2.8 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value Of Derivative Instruments In Balance Sheets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value | |||||
Document Period End Date | Sep. 30, 2019 | ||||
Derivative assets | $ 152.3 | $ 152.3 | $ 114 | ||
Derivative liabilities | 334.3 | 334.3 | 183.3 | ||
Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | Long-Term - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 15.7 | 15.7 | 9.2 | ||
Derivative liabilities | 0 | 0 | 0 | ||
Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives | Long-Term - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 0 | 0 | 0 | ||
Derivative liabilities | 15.7 | 15.7 | 9.2 | ||
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | |||||
Derivatives, Fair Value | |||||
Derivative assets | 127.9 | 127.9 | 92.8 | ||
Derivative liabilities | 309.9 | 309.9 | 163.3 | ||
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 97.5 | 97.5 | 83.8 | ||
Derivative liabilities | 217.6 | 217.6 | 127.7 | ||
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Long-Term - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 30.4 | 30.4 | 9 | ||
Derivative liabilities | 92.3 | 92.3 | 35.6 | ||
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | |||||
Derivatives, Fair Value | |||||
Derivative assets | 8.7 | 8.7 | 12 | ||
Derivative liabilities | 8.7 | 8.7 | 10.8 | ||
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 8.7 | 8.7 | 11.9 | ||
Derivative liabilities | 8.7 | 8.7 | 10.7 | ||
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Long-Term - Derivative Financial Instruments | |||||
Derivatives, Fair Value | |||||
Derivative assets | 0 | 0 | 0.1 | ||
Derivative liabilities | 0 | 0 | $ 0.1 | ||
Cash Flow Hedging | Foreign exchange contracts | |||||
Derivatives, Fair Value | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (47) | $ 16.5 | $ (44) | $ (24) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Location of gain (loss) recognized in income related to hedges and derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Revenues | $ 3,335.1 | $ 3,143.8 | $ 9,682.3 | $ 9,229.9 |
Selling, general and administrative expense | (298.1) | (250.6) | (919.7) | (835.1) |
Other income (expense), net | (57.7) | 10.4 | (156.5) | (12.6) |
Sales [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (0.1) | (1.2) | (0.9) | |
Total gain (loss) recognized in income associated with hedges and derivatives | (0.6) | (6.5) | (15.3) | (3) |
Cost of Sales [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0.1 | 0.2 | 0.4 | |
Total gain (loss) recognized in income associated with hedges and derivatives | (1.2) | 7.4 | 1.4 | 10.7 |
Selling, General and Administrative Expenses [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 | 0 | 0 |
Total gain (loss) recognized in income associated with hedges and derivatives | 0 | (0.1) | 0.1 | (0.1) |
Other Nonoperating Income (Expense) [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (19.4) | (5.3) | (14.4) | (6.9) |
Total gain (loss) recognized in income associated with hedges and derivatives | (4.7) | (27.1) | (23.2) | (30.2) |
Cash Flow Hedging | Sales [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 2.6 | (5.7) | 1.5 | (4.9) |
Total cash flow hedge gain (loss) recognized in income | (0.5) | (6.5) | (14.1) | (2.1) |
Cash Flow Hedging | Cost of Sales [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | (2.9) | 6.1 | (5.1) | 4.1 |
Total cash flow hedge gain (loss) recognized in income | (1.3) | 7.2 | 1.4 | 10.3 |
Cash Flow Hedging | Selling, General and Administrative Expenses [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | 0 | 0 |
Total cash flow hedge gain (loss) recognized in income | 0 | (0.1) | 0.1 | (0.1) |
Cash Flow Hedging | Other Nonoperating Income (Expense) [Member] | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | (8.6) | (26.6) | (30.7) | (23.4) |
Total cash flow hedge gain (loss) recognized in income | 14.7 | (21.8) | (8.8) | (23.3) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Amount Reclassified out of Accumulated Other Comprehensive Loss | Cash Flow Hedging | Foreign exchange contracts | ||||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||||
Revenues | (3.1) | (0.8) | (15.6) | 2.8 |
Cost of Revenue | 1.6 | 1.1 | 6.5 | 6.2 |
Selling, general and administrative expense | 0 | (0.1) | 0.1 | (0.1) |
Other income (expense), net | $ 23.3 | $ 4.8 | $ 21.9 | $ 0.1 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Offsetting Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative assets | ||
Gross Amount Recognized | $ 152.3 | $ 114 |
Gross Amounts Not Offset, But Permitted Under Master Netting Agreements | (136.4) | (105.9) |
Net Amount | 15.9 | 8.1 |
Derivative liabilities | ||
Gross Amount Recognized | 334.3 | 183.3 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (136.4) | (105.9) |
Net Amount | $ 197.9 | $ 77.4 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Jan. 29, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||
Mandatorily redeemable financial liability | $ 288.8 | $ 412.8 | $ 408.5 | $ 401.3 | $ 308.1 | $ 312 | |
Increase in liability due to one percentage point decrease in discount rate | 2.8 | ||||||
Redeemable Noncontrolling Interest | $ 38.5 | 38.5 | |||||
Derivative, Credit Risk Related Contingent Features, Existence and Nature | 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. | ||||||
Debt, carrying value | $ 1,926.8 | 1,998.6 | |||||
Debt, fair value | $ 2,085 | $ 2,109.7 | |||||
Island Offshore Subsea AS | Non-controlling Interest | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||
Redeemable noncontrolling interest, acquired percent | 51.00% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured On A Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | $ 15.9 | $ 8.1 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 197.9 | 77.4 | |
Liabilities held for sale | 21 | 16.2 | |
Fair Value, Measurements, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Equity securities | [1] | 50.7 | 40.4 |
Held-to-maturity debt securities | 60 | 20 | |
Assets held for sale | 17.6 | 9.6 | |
Total assets | 284.4 | 186.1 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities held for sale | 21 | 16.2 | |
Total liabilities | 644.1 | 608 | |
Fair Value, Measurements, Recurring | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 15.7 | 9.2 | |
Fair Value, Measurements, Recurring | Foreign exchange contracts | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 136.6 | 104.8 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 318.6 | 174.1 | |
Fair Value, Measurements, Recurring | Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 15.7 | 9.2 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Equity securities | [1] | 50.7 | 40.4 |
Held-to-maturity debt securities | 0 | 0 | |
Assets held for sale | 0 | 0 | |
Total assets | 50.7 | 40.4 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities held for sale | 0 | 0 | |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Equity securities | [1] | 0 | 0 |
Held-to-maturity debt securities | 60 | 20 | |
Assets held for sale | 0 | 0 | |
Total assets | 213.9 | 135.6 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities held for sale | 0 | 0 | |
Total liabilities | 334.3 | 183.3 | |
Fair Value, Measurements, Recurring | Level 2 | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 15.7 | 9.2 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 136.6 | 104.8 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 318.6 | 174.1 | |
Fair Value, Measurements, Recurring | Level 2 | Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 15.7 | 9.2 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Equity securities | [1] | 0 | 0 |
Held-to-maturity debt securities | 0 | 0 | |
Assets held for sale | 17.6 | 9.6 | |
Total assets | 17.6 | 9.6 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Liabilities held for sale | 21 | 16.2 | |
Total liabilities | 309.8 | 424.7 | |
Fair Value, Measurements, Recurring | Level 3 | Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument assets | 0 | 0 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative financial instrument liabilities | 0 | 0 | |
Redeemable financial liability | Fair Value, Measurements, Recurring | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 288.8 | 408.5 | |
Redeemable financial liability | Fair Value, Measurements, Recurring | Level 1 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 0 | 0 | |
Redeemable financial liability | Fair Value, Measurements, Recurring | Level 2 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 0 | 0 | |
Redeemable financial liability | Fair Value, Measurements, Recurring | Level 3 | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Redeemable financial liability | 288.8 | 408.5 | |
Nonqualified Plan [Member] | Fair Value, Measurements, Recurring | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market fund | 1.6 | 1.6 | |
Stable Value Fund | [2] | 2.2 | 0.5 |
Nonqualified Plan [Member] | Fair Value, Measurements, Recurring | Level 1 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market fund | 0 | 0 | |
Stable Value Fund | [2] | 0 | 0 |
Nonqualified Plan [Member] | Fair Value, Measurements, Recurring | Level 2 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market fund | 1.6 | 1.6 | |
Stable Value Fund | [2] | 0 | 0 |
Nonqualified Plan [Member] | Fair Value, Measurements, Recurring | Level 3 | |||
Assets, Fair Value Disclosure [Abstract] | |||
Money market fund | 0 | 0 | |
Stable Value Fund | [2] | $ 0 | $ 0 |
[1] | Includes 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 (Level
Fair Value Measurements (Level 3 Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Balance at beginning of period | $ 412.8 | $ 308.1 | $ 408.5 | $ 312 |
Less: Gains (losses) recognized in net interest expense | (99.1) | (93.2) | (324) | (213.5) |
Less: Settlements | 223.1 | 443.7 | 124.2 | |
Balance at end of period | $ 288.8 | $ 401.3 | $ 288.8 | $ 401.3 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Subsequent Event [Line Items] | |
Other Asset Impairment Charges | $ 125.1 |