Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | Hadrian House,Wincomblee Road | |
Entity Address, City or Town | Newcastle Upon Tyne | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | NE6 3PL | |
Country Region | 44 | |
City Area Code | 191 | |
Local Phone Number | 295-0303 | |
Title of 12(b) Security | Ordinary shares, $1.00 par value per share | |
Trading Symbol | FTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 452,211,536 | |
Entity Central Index Key | 0001681459 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Lease revenue | $ 45 | $ 32.8 |
Total revenue | 1,555.8 | 1,632 |
Costs and expenses | ||
Cost of lease revenue | 39.8 | 26.2 |
Selling, general and administrative expense | 159.6 | 147.6 |
Research and development expense | 14.6 | 16.5 |
Impairment, restructuring and other expenses | 1 | 25.5 |
Total costs and expenses | 1,545.4 | 1,630.8 |
Other income, net | 40.8 | 35.6 |
Income from equity affiliates | 5.4 | 7.7 |
Income (loss) from investment in Technip Energies | (28.5) | 470.1 |
Income before net interest expense and income taxes | 28.1 | 514.6 |
Interest income | 4 | 4.1 |
Interest expense | (37.9) | (38.6) |
Loss on early extinguishment of debt | 0 | (23.5) |
Income (loss) before income taxes | (5.8) | 456.6 |
Provision for income taxes | 28.5 | 24.5 |
Income (loss) from continuing operations | (34.3) | 432.1 |
Net (income) from continuing operations attributable to non-controlling interests | (8) | (1.8) |
Income (loss) from continuing operations attributable to TechnipFMC plc | (42.3) | 430.3 |
Loss from discontinued operations | (19.4) | (60.2) |
Income from discontinued operations attributable to non-controlling interests | 0 | (1.9) |
Net income (loss) attributable to TechnipFMC plc | $ (61.7) | $ 368.2 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Basic (usd per share) | $ (0.09) | $ 0.96 |
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Diluted (usd per share) | (0.09) | 0.95 |
Earnings (loss) per share from discontinued operations attributable to TechnipFMC plc basic (usd per share) | (0.04) | (0.14) |
Earnings (loss) per share from discontinued operations attributable to TechnipFMC plc diluted (usd per share) | (0.04) | (0.14) |
Total earnings (loss) per share attributable to TechnipFMC plc Basic (usd per share) | (0.13) | 0.82 |
Total earnings (loss) per share attributable to TechnipFMC plc Diluted (usd per share) | $ (0.13) | $ 0.81 |
Weighted average shares outstanding (Note 6) | ||
Basic (in shares) | 451.1 | 449.7 |
Diluted (in shares) | 451.1 | 451.1 |
Service revenue | ||
Revenue | ||
Revenue | $ 896.7 | $ 826.2 |
Costs and expenses | ||
Cost of goods and services sold | 831.1 | 743.8 |
Products | ||
Revenue | ||
Revenue | 614.1 | 773 |
Costs and expenses | ||
Cost of goods and services sold | $ 499.3 | $ 671.2 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) attributable to TechnipFMC plc | $ (61.7) | $ 368.2 | |
Net (income) from continuing operations attributable to non-controlling interests | (8) | (1.8) | |
Income from discontinued operations attributable to non-controlling interests | 0 | (1.9) | |
Net income (loss) attributable to TechnipFMC plc, including non-controlling interests | (53.7) | 371.9 | |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments | [1] | 125.7 | (28.1) |
Net gains (losses) on hedging instruments | |||
Net losses arising during the period | (14.9) | (14.5) | |
Reclassification adjustment for net (gains) losses included in net income (loss) | 6.4 | (2.7) | |
Net gains (losses) on hedging instruments | [2] | (8.5) | (17.2) |
Pension and other post-retirement benefits | |||
Net gains (losses) arising during the period | (0.2) | 3.5 | |
Reclassification adjustment for amortization of prior service cost included in net income (loss) | 0.1 | 0.1 | |
Reclassification adjustment for amortization of net actuarial loss included in net income (loss) | 3 | 4.8 | |
Net pension and other postretirement benefits | [3] | 2.9 | 8.4 |
Other comprehensive income (loss), net of tax | 120.1 | (36.9) | |
Comprehensive income | 66.4 | 335 | |
Comprehensive income attributable to non-controlling interest | (8.4) | (3.8) | |
Comprehensive income attributable to TechnipFMC plc | $ 58 | $ 331.2 | |
[1] | Net of income tax benefit of nil for the three months ended March 31, 2022 and 2021. | ||
[2] | Net of income tax benefit of $2.1 million and $4.9 million for the three months ended March 31, 2022 and 2021, respectively. | ||
[3] | Net of income tax expense of $0.4 million and $2.1 million for the three months ended March 31, 2022 and 2021, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax (expense) benefit | $ 0 | $ 0 |
Net gains (losses) on hedging instruments, tax benefit | 2.1 | 4.9 |
Net pension and other post-retirement benefits, tax (expense) benefit | $ (0.4) | $ (2.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 1,203 | $ 1,327.4 |
Trade receivables, net of allowances of $38.5 in 2022 and $38.1 in 2021 | 1,020.8 | 911.9 |
Contract assets, net of allowances of $1.3 in 2022 and $1.1 in 2021 | 983.4 | 966 |
Inventories, net | 1,074.4 | 1,031.9 |
Derivative financial instruments | 178.5 | 110.3 |
Income taxes receivable | 82.8 | 85 |
Advances paid to suppliers | 63.9 | 79.4 |
Other current assets | 583 | 512.3 |
Investment in Technip Energies | 49.1 | 317.3 |
Total current assets | 5,238.9 | 5,341.5 |
Investments in equity affiliates | 292.2 | 292.4 |
Property, plant and equipment, net of accumulated depreciation of $2,506.9 in 2022 and $2,204.0 in 2021 | 2,570 | 2,597.2 |
Operating lease right-of-use assets | 780.9 | 707.9 |
Finance lease right-of-use assets | 51.7 | 52.2 |
Intangible assets, net of accumulated amortization of $598.7 in 2022 and $575.5 in 2021 | 788.4 | 813.7 |
Deferred income taxes | 68.2 | 74.3 |
Derivative financial instruments | 144.9 | 10.5 |
Other assets | 143.8 | 130.4 |
Total assets | 10,079 | 10,020.1 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt | 281.8 | 277.6 |
Operating lease liabilities | 137.4 | 126.2 |
Finance lease liabilities | 51.9 | 0.7 |
Accounts payable, trade | 1,283.6 | 1,294.3 |
Contract liabilities | 834.7 | 1,012.9 |
Accrued payroll | 176.7 | 194.1 |
Derivative financial instruments | 209.2 | 161 |
Income taxes payable | 116.7 | 124.6 |
Other current liabilities | 582.8 | 660.4 |
Total current liabilities | 3,674.8 | 3,851.8 |
Long-term debt, less current portion | 1,723.3 | 1,727.3 |
Operating lease liabilities, less current portion | 707.4 | 646.8 |
Financing lease liabilities, less current portion | 0 | 51.1 |
Deferred income taxes | 58.8 | 47.5 |
Accrued pension and other post-retirement benefits, less current portion | 105.2 | 113.4 |
Derivative financial instruments | 168.7 | 15.5 |
Other liabilities | 150.4 | 148.3 |
Total liabilities | 6,588.6 | 6,601.7 |
Commitments and contingent liabilities | ||
Stockholders’ equity (Note 13) | ||
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2022 and 2021; 452.2 shares and 450.7 shares issued and outstanding in 2022 and 2021, respectively | 452.2 | 450.7 |
Capital in excess of par value of ordinary shares | 9,169.1 | 9,160.8 |
Accumulated deficit | (4,969.7) | (4,903.8) |
Accumulated other comprehensive loss | (1,185.3) | (1,305) |
Total TechnipFMC plc stockholders’ equity | 3,466.3 | 3,402.7 |
Non-controlling interests | 24.1 | 15.7 |
Total equity | 3,490.4 | 3,418.4 |
Total liabilities and equity | $ 10,079 | $ 10,020.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 38.5 | $ 38.1 |
Allowance for contract assets | 1.3 | 1.1 |
Property, plant and equipment, accumulated depreciation | 2,506.9 | 2,204 |
Intangible assets, accumulated amortization | $ 598.7 | $ 575.5 |
Ordinary shares, par value (usd per share) | $ 1 | $ 1 |
Ordinary shares, shares authorized (in shares) | 618,300,000 | 618,300,000 |
Ordinary shares, shares issued (in shares) | 452,200,000 | 450,700,000 |
Ordinary shares, shares outstanding (in shares) | 452,200,000 | 450,700,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash provided (required) by operating activities | ||
Net income (loss) | $ (53.7) | $ 371.9 |
Net loss from discontinued operations | 19.4 | 60.2 |
Adjustments to reconcile income (loss) from continuing operations to cash provided (required) by operating activities | ||
Depreciation and amortization | 95.9 | 95.2 |
Impairments | 1.1 | 18.8 |
Employee benefit plan and share-based compensation costs | 7.9 | 4.7 |
Deferred income tax provision (benefit), net | 23 | (31.9) |
(Income) loss from investment in Technip Energies | 28.5 | (470.1) |
Unrealized loss (gain) on derivative instruments and foreign exchange | 13 | (5.5) |
Income from equity affiliates, net of dividends received | (5.4) | (7.7) |
Loss on early extinguishment of debt | 0 | 23.5 |
Other | 8.7 | (0.1) |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Trade receivables, net and contract assets | (64.4) | (165.6) |
Inventories, net | (15.9) | 66 |
Accounts payable, trade | (26.9) | 84.8 |
Contract liabilities | (183.5) | (132.9) |
Income taxes payable, net | 1.8 | 165.3 |
Other current assets and liabilities, net | (161) | 100.7 |
Other non-current assets and liabilities, net | (17.9) | 4.2 |
Cash provided (required) by operating activities from continuing operations | (329.4) | 181.5 |
Cash provided by operating activities from discontinued operations | 0 | 66.3 |
Cash provided (required) by operating activities | (329.4) | 247.8 |
Cash provided (required) by investing activities | ||
Capital expenditures | (27.3) | (44.2) |
Proceeds from redemption of debt securities | 0.5 | 24.2 |
Advances from BPI | 0 | 100 |
Proceeds from sale of investment in Technip Energies | 238.5 | 100 |
Proceeds from repayment of advances to joint venture | 0 | 12.5 |
Other | (8) | 4.4 |
Cash provided by investing activities from continuing operations | 203.7 | 196.9 |
Cash required by investing activities from discontinued operations | 0 | (4.5) |
Cash provided by investing activities | 203.7 | 192.4 |
Cash required by financing activities | ||
Net change in short-term debt | (8) | 6.2 |
Net decrease in commercial paper | 0 | (953.1) |
Net decrease in revolving credit facility | 0 | 200 |
Proceeds from issuance of long-term debt | 0 | 1,000 |
Repayments of long-term debt | 0 | (1,065.8) |
Payments for debt issuance costs | 0 | (53.5) |
Other | (5.1) | (0.4) |
Cash required by financing activities from continuing operations | (13.1) | (866.6) |
Cash required by financing activities from discontinued operations | 0 | (3,617.7) |
Cash required by financing activities | (13.1) | (4,484.3) |
Effect of changes in foreign exchange rates on cash and cash equivalents | 14.4 | (10.9) |
Change in cash and cash equivalents | (124.4) | (4,055) |
Cash and cash equivalents, beginning of period | 1,327.4 | 4,807.8 |
Cash and cash equivalents, end of period | $ 1,203 | $ 752.8 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Ordinary Shares | Capital in Excess of Par Value of Ordinary Shares | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance at Dec. 31, 2020 | $ 4,214.3 | $ 449.5 | $ 10,242.4 | $ (4,915.2) | $ (1,622.5) | $ 60.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 371.9 | 368.2 | 3.7 | |||
Other comprehensive income (loss) | (36.9) | (37) | 0.1 | |||
Issuance of ordinary shares | 0.3 | 0.3 | ||||
Share-based compensation | 3.4 | 3.4 | ||||
Spin-off of Technip Energies | (854.9) | (1,093.7) | 258.7 | (19.9) | ||
Other | (2.6) | (2.6) | ||||
Ending balance at Mar. 31, 2021 | 3,695.5 | 449.8 | 9,152.1 | (4,547) | (1,400.8) | 41.4 |
Beginning balance at Dec. 31, 2021 | 3,418.4 | 450.7 | 9,160.8 | (4,903.8) | (1,305) | 15.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (53.7) | (61.7) | 8 | |||
Other comprehensive income (loss) | 120.1 | 119.7 | 0.4 | |||
Issuance of ordinary shares | (0.1) | 1.5 | (1.6) | |||
Share-based compensation | 9.9 | 9.9 | ||||
Other | (4.2) | (4.2) | ||||
Ending balance at Mar. 31, 2022 | $ 3,490.4 | $ 452.2 | $ 9,169.1 | $ (4,969.7) | $ (1,185.3) | $ 24.1 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the 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, 2021. 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 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, 2022. Reclassifications and revision Certain prior-year amounts have been reclassified to conform to the current year’s presentation. The Company identified an error in the presentation of certain cash flow items related to discontinued operations that impacted cash and cash equivalents at the beginning of period, cash required by financing activities from discontinued operations and change in cash and cash equivalents line items within the previously issued statement of cash flows for the three months ended March 31, 2021. Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC Staff Bulletin (“SAB”) No. 99, Materiality, Codified in ASC 250-10, Accounting Changes and Error Corrections (“ASC 250”) , and concluded that these misstatements were not material to any previously issued financial statements. However, in order to achieve comparability in the financial statements, the Company has determined it appropriate to revise the following financial statement line items (amounts are in millions): Three Months Ended March 31, 2021 (In millions) As previously reported Revision As Revised Cash required by financing activities from continuing operations $ (866.6) $ — $ (866.6) Cash required by financing activities from discontinued operations (79.1) (3,538.6) (3,617.7) Cash required by financing activities (945.7) (3,538.6) (4,484.3) Change in cash and cash equivalents (516.4) (3,538.6) (4,055.0) Cash and cash equivalents, beginning of period 1,269.2 3,538.6 4,807.8 Cash and cash equivalents, end of period $ 752.8 $ — $ 752.8 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The Spin-off On February 16, 2021, we completed our separation of the Technip Energies business segment. The transaction was structured as a spin-off (the “Spin-off”), which occurred by way of a pro rata dividend (the “Distribution”) to our shareholders of 50.1% of the outstanding shares in Technip Energies N.V. Each of our shareholders received one ordinary share of Technip Energies N.V. for every five ordinary shares of TechnipFMC held at 5:00 p.m., Eastern Standard Time, on the record date, February 17, 2021. Technip Energies N.V. is now an independent public company and its shares trade under the ticker symbol “TE” on the Euronext Paris Stock Exchange. In connection with the Spin-off, TechnipFMC and Technip Energies entered into a separation and distribution agreement, as well as various other agreements, including, among others, a tax matters agreement, an employee matters agreement and a transition services agreement and certain agreements relating to intellectual property. These agreements provide for the allocation between TechnipFMC and Technip Energies of assets, employees, taxes, liabilities and obligations attributable to periods prior to, at and after the Spin-off. Discontinued Operations The Spin-off represented a strategic shift that had a major impact to our operations and consolidated financial statements. Accordingly, historical results of Technip Energies prior to the Distribution on February 16, 2021 have been presented as discontinued operations in our condensed consolidated statements of income and condensed consolidated statements of cash flows for the three months ended March 31, 2021. Our condensed consolidated statements of income, condensed consolidated balance sheets and condensed consolidated statements of cash flows and notes to the condensed consolidated financial statements have been updated to reflect continuing operations only. The following table summarizes the components of income from discontinued operations, net of tax: Three Months Ended March 31, (In millions) 2022 2021 Revenue $ — $ 906.0 Costs and expenses — (889.3) Other expense, net — (18.6) Loss from discontinued operations before income taxes $ — $ (1.9) Income taxes 19.4 58.3 Loss from discontinued operations, net of income taxes $ (19.4) $ (60.2) For the three months ended March 31, 2022, we recorded $19.4 million in income taxes from discontinued operations related to a change in estimate in our French tax group, which resulted in a tax liability from the Spin-off transaction. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards under GAAP In August 2020, the FASB issued ASU No. 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). ” This update simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. The amendments to this update are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. We adopted this amendment as of January 1, 2022, which did not have a material impact on our condensed consolidated financial statements. Recently Issued Accounting Standards under GAAP In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848).” In addition, in January 2021, FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848)” which clarifies the scope of Topic 848 . The amendments in these updates apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update were issued as of March 12, 2020, effective through December 31, 2022. We are currently evaluating the impact of this ASU on our condensed consolidated financial statements. We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or were not expected to have a material impact on our financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
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 Revenues are disaggregated by geographic location and contract types. The following tables present total revenue by geography for each reportable segment for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (In millions) Subsea Surface Technologies Subsea Surface Technologies Europe and Central Asia $ 356.0 $ 39.2 $ 268.4 $ 43.8 North America 200.4 116.2 230.1 74.5 Latin America 324.8 21.6 320.8 17.9 Asia Pacific 221.5 23.6 245.0 24.5 Africa 183.1 8.5 295.3 9.6 Middle East 3.3 57.6 26.9 75.2 Total revenue $ 1,289.1 $ 266.7 $ 1,386.5 $ 245.5 The following tables present total revenue by contract type for each reportable segment for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (In millions) Subsea Surface Technologies Subsea Surface Technologies Services $ 845.6 $ 51.1 $ 793.4 $ 32.8 Products 431.5 182.6 581.8 191.2 Lease 12.0 33.0 11.3 21.5 Total revenue $ 1,289.1 $ 266.7 $ 1,386.5 $ 245.5 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 condensed consolidated balance sheets. Any expected contract losses are recorded in the period in which they become probable. Contract Assets - Contract assets 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 March 31, 2022 and December 31, 2021: (In millions) March 31, December 31, $ change % change Contract assets $ 983.4 $ 966.0 $ 17.4 1.8 Contract liabilities (834.7) (1,012.9) 178.2 17.6 Net contract assets (liabilities) $ 148.7 $ (46.9) $ 195.6 417.1 The increase in our contract assets from December 31, 2021 to March 31, 2022 was primarily due to the timing of project milestones. The decrease in our contract liabilities was primarily due to completion of performance obligations for contracts, for which consideration was received in advance of the work performed during the period. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Any subsequent revenue we recognize increases contract asset balance. Revenue recognized for the three months ended March 31, 2022 and 2021 that was included in the contract liabilities balance as of December 31, 2021 and 2020 was $112.9 million and $128.4 million, respectively. In addition, net revenue recognized for the three months ended March 31, 2022 and 2021 from our performance obligations satisfied in previous periods had unfavorable impacts of $(12.2) million and $(5.3) million , respectively, from changes in the estimate of the stage of completion that impacted revenue. Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations Remaining unsatisfied performance obligations (“RUPO” or “order backlog”) represents 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 March 31, 2022, the aggregate amount of the transaction price allocated to order backlog was $8,894.1 million. TechnipFMC expects to recognize revenue on approximately 36% of the order backlog through 2022 and 64% thereafter. The following table details the order backlog for each business segment as of March 31, 2022: (In millions) 2022 2023 Thereafter Subsea $ 2,933.0 $ 2,880.0 $ 1,928.3 Surface Technologies 292.0 125.2 735.6 Total order backlog $ 3,225.0 $ 3,005.2 $ 2,663.9 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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 Chair and 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 operate under two reporting segments, Subsea and Surface Technologies: • 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. • 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 (loss) 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 (loss): corporate staff expense, foreign exchange gains (losses), income (loss) from investment in Technip Energies, net interest income (expense) associated with corporate debt facilities and income taxes. Segment revenue and segment operating profit (loss) were as follows: Three Months Ended March 31, (In millions) 2022 2021 Segment revenue Subsea $ 1,289.1 $ 1,386.5 Surface Technologies 266.7 245.5 Total revenue $ 1,555.8 $ 1,632.0 Segment operating profit Subsea $ 54.0 $ 37.0 Surface Technologies 3.7 8.2 Total segment operating profit $ 57.7 $ 45.2 Corporate items Corporate expense (a) (29.5) (28.8) Net interest expense (33.9) (34.5) Loss on early extinguishment of debt — (23.5) Income (loss) from investment in Technip Energies (28.5) 470.1 Foreign exchange gains 28.4 28.1 Total corporate items (63.5) 411.4 Income (loss) before income taxes (b) $ (5.8) $ 456.6 (a) Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits. (b) Includes amounts attributable to non-controlling interests. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings (loss) per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2022 2021 Income (loss) from continuing operations attributable to TechnipFMC plc $ (42.3) $ 430.3 Loss from discontinued operations attributable to TechnipFMC plc (19.4) (62.1) Net income (loss) attributable to TechnipFMC plc $ (61.7) $ 368.2 Weighted average number of shares outstanding 451.1 449.7 Dilutive effect of restricted stock units — 1.4 Total shares and dilutive securities 451.1 451.1 Basic and diluted earnings (loss) per share attributable to TechnipFMC plc: Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Basic $ (0.09) $ 0.96 Diluted $ (0.09) $ 0.95 Loss per share from discontinued operations attributable to TechnipFMC plc Basic and diluted $ (0.04) $ (0.14) Total earnings (loss) per share attributable to TechnipFMC plc Basic $ (0.13) $ 0.82 Diluted $ (0.13) $ 0.81 For the three months ended March 31, 2022, we incurred a loss from continuing operations; therefore, the impact of 4.8 million shares was anti-dilutive. Weighted average shares of the following share-based compensation awards were excluded from the calculation of diluted weighted average number of shares, where the assumed proceeds exceed the average market price from the calculation of diluted weighted average number of shares, because their effect would be anti-dilutive: Three Months Ended March 31, (millions of shares) 2022 2021 Share option awards 1.6 1.7 Restricted share units 0.7 4.9 Performance shares 0.3 — Total 2.6 6.6 |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES We manage our trade and loans receivables portfolios using published default risk as a key credit quality indicator. Our loans receivable and security deposits were related to sales of long-lived assets or businesses, loans to related parties for capital expenditure purposes, or security deposits for lease arrangements. We manage our held-to-maturity debt securities using published credit ratings as a key credit quality indicator as our held-to-maturity debt securities consist of government bonds. The table below summarizes the amortized cost basis of financial assets by years of origination and credit quality. The key credit quality indicator is updated as of March 31, 2022. (In millions) Year of origination Balance as of March 31, 2022 Balance as of December 31, 2021 Loans receivables, security deposits and other Moody’s rating Ba2 2019 $ 62.6 $ 50.9 Debt securities at amortized cost Moody’s rating B3 2019 23.9 24.0 Total financial assets $ 86.5 $ 74.9 Credit Losses For contract assets, trade receivables, loans receivable, and security deposits and other, we have elected to calculate an expected credit loss based on loss rates from historical data. We develop loss-rate statistics on the basis of the amount written-off over the life of the financial assets and contract assets and adjust these historical credit loss trends for forward-looking factors specific to the debtors and the economic environment to determine lifetime expected losses. For held-to-maturity debt securities at amortized cost, we evaluate whether the debt securities are considered to have low credit risk at the reporting date using available and supportable information. The table below shows the roll-forward of allowance for credit losses as of March 31, 2022 and 2021, respectively. Balance as of March 31, 2022 (In millions) Trade receivables Contract assets Loans receivable Security deposit and other Held-to-maturity debt securities Allowance for credit losses at December 31, 2021 $ 38.1 $ 1.1 $ 0.3 $ 0.3 $ 2.7 Current period provision (release) for expected credit losses 0.9 0.2 (0.1) (0.3) (0.6) Recoveries (0.5) — — — — Allowance for credit losses at March 31, 2022 $ 38.5 $ 1.3 $ 0.2 $ — $ 2.1 Balance as of March 31, 2021 (In millions) Trade receivables Contract assets Loans receivable Security deposit and other Held-to-maturity debt securities Allowance for credit losses at December 31, 2020 $ 40.2 $ 2.4 $ 7.5 $ 0.4 $ 0.5 Current period provision (release) for expected credit losses 3.8 (0.6) (0.5) 0.2 (0.5) Recoveries (5.5) (0.7) (1.1) — — Allowance for credit losses at March 31, 2021 $ 38.5 $ 1.1 $ 5.9 $ 0.6 $ — Certain trade receivables are due in one year or less. We do not have any financial assets that are past due or are on non-accrual status . |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 291.4 $ 250.1 Work in process 189.3 178.7 Finished goods 593.7 603.1 Inventories, net $ 1,074.4 $ 1,031.9 |
OTHER CURRENT ASSETS & OTHER CU
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
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) March 31, December 31, Value - added tax receivables $ 237.3 $ 222.4 Withholding tax and other receivables 203.9 176.7 Prepaid expenses 74.4 50.7 Current financial assets at amortized cost 25.7 21.9 Held-to-maturity investments 9.5 8.8 Assets held for sale 5.0 5.0 Other 27.2 26.8 Total other current assets $ 583.0 $ 512.3 Other current liabilities consisted of the following: (In millions) March 31, December 31, Legal provisions 126.7 121.7 Warranty accruals and project contingencies $ 119.0 $ 119.5 Social security liability 77.1 70.4 Value - added tax and other taxes payable 64.8 71.0 Compensation accrual 18.2 85.7 Provisions 8.6 23.6 Current portion of accrued pension and other post-retirement benefits 4.5 5.2 Other accrued liabilities 163.9 163.3 Total other current liabilities $ 582.8 $ 660.4 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS Our income (loss) from equity affiliates is included in our Subsea segment. Our income from equity affiliates during the three months ended March 31, 2022 and 2021 was $5.4 million and $7.7 million, respectively. During the three months ended March 31, 2022, we entered into a partnership with Magnora ASA, Magnora Offshore Wind, in order to develop floating offshore wind projects. As of March 31, 2022, the equity method investment balance was $2.9 million and represented approximately 20% ownership. Investment in Technip Energies As of March 31, 2022 , we retained a direct stake of 4.0 million shares, representing 2.2% of Technip Energies’ issued and outstanding share capital. The carrying amount of our investment in Technip Energies as of March 31, 2022 was $49.1 million. For the three months ended March 31, 2022 and 2021, we recognized $28.5 million loss and $470.1 million gain, respectively, related to our investment in Technip Energies. The amounts recognized include purchase price discounts on the sales of shares and fair value revaluation losses of our investment. Subsequent to the quarter end, we fully divested of our remaining ownership in Technip Energies. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Receivables, payables, revenues and expenses, which are included in our condensed 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. Accounts receivable consisted of receivables due from the following related parties: (In millions) March 31, December 31, 2021 Dofcon Navegacao $ 19.3 $ 22.7 Techdof Brasil AS 8.5 4.5 Others 1.0 2.5 Total accounts receivable $ 28.8 $ 29.7 Dofcon Navegacao and Techdof Brasil AS are our equity method investments. Additionally, we have a note receivable of $12.7 million and $12.6 million with Dofcon Brasil AS as of March 31, 2022 and December 31, 2021, respectively. These are included in other assets in our condensed consolidated balance sheets. As of March 31, 2022 and December 31, 2021, we did not have significant accounts payable outstanding with our related parties. Revenue consisted of amounts from following related parties: Three Months Ended March 31, (In millions) 2022 2021 Equinor ASA $ — $ 95.5 Dofcon Navegacao 1.6 0.2 Techdof Brasil AS — 3.5 Others 1.7 4.4 Total revenue $ 3.3 $ 103.6 In October 2020, we added a new member to our Board of Directors who was an executive of Equinor ASA up through January 2021. For the three months ended March 31, 2022 and 2021, we did not incur significant expenses relating to transactions with our related parties. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Overview Long-term debt consisted of the following: (In millions) March 31, December 31, 3.40% 2012 Private placement notes due 2022 $ 166.5 $ 169.9 3.15% 2013 Private placement notes due 2023 283.1 288.8 5.75% 2020 Private placement notes due 2025 222.0 226.5 6.50% Senior notes due 2026 633.1 633.1 4.00% 2012 Private placement notes due 2027 83.3 84.9 4.00% 2012 Private placement notes due 2032 111.0 113.3 3.75% 2013 Private placement notes due 2033 111.0 113.3 Bank borrowings and other 416.0 397.4 Unamortized debt issuance costs and discounts (20.9) (22.3) Total debt 2,005.1 2,004.9 Less: current borrowings 281.8 277.6 Long-term debt $ 1,723.3 $ 1,727.3 Credit Facilities and Debt Revolving Credit Facility - On February 16, 2021, we entered into a credit agreement, which provides for a $1.0 billion three-year senior secured multicurrency Revolving Credit Facility including a $450.0 million letter of credit subfacility. We incurred $34.8 million of debt issuance costs in connection with the Revolving Credit Facility. These debt issuance costs are deferred and are included in other assets in our condensed consolidated balance sheet as of March 31, 2022. The deferred debt issuance costs are amortized to interest expense over the term of the Revolving Credit Facility. Availability of borrowings under the Revolving Credit Facility is reduced by the outstanding letters of credit issued against the facility. As of March 31, 2022, there were $39.6 million of letters of credit outstanding and availability of borrowings under the Revolving Credit Facility was $960.4 million. Borrowings under the Revolving Credit Facility bear interest at the following rates, plus an applicable margin, depending on currency: • U.S. dollar-denominated loans bear interest, at the Company’s option, at a base rate or an adjusted rate linked to the London interbank offered rate (“Adjusted LIBOR”); and • Euro-denominated loans bear interest on an adjusted rate linked to the Euro interbank offered rate. The applicable margin for borrowings under the Revolving Credit Facility ranges from 2.50% to 3.50% for Eurocurrency loans and 1.50% to 2.50% for base rate loans, depending on a total leverage ratio. The Revolving Credit Facility is subject to customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants. 2021 Notes - On January 29, 2021, we issued $1.0 billion of 6.50% senior notes due 2026. The interest on the 2021 Notes is paid semi-annually on February 1 and August 1 of each year, beginning on August 1, 2021. The 2021 Notes are senior unsecured obligations and are guaranteed on a senior unsecured basis by substantially all of our wholly-owned U.S. subsidiaries and non-U.S. subsidiaries in Brazil, the Netherlands, Norway, Singapore and the United Kingdom. We incurred $25.7 million of debt issuance costs in connection with issuance of the 2021 Notes. These debt issuance costs are deferred and are included in long-term debt in our condensed consolidated balance sheet as of March 31, 2022. The deferred debt issuance costs are amortized to interest expense over the term of the 2021 Notes, which approximates the effective interest method. As of March 31, 2022 we were in compliance with all debt covenants. Bank borrowings - Include term loans issued in connection with financing for certain of our vessels and amounts outstanding under our foreign committed credit lines. Foreign committed credit - We have committed credit lines at many of our international subsidiaries for immaterial amounts. We utilize these facilities for asset financing and to provide a more efficient daily source of liquidity. The effective interest rates depend upon the local national market. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Accumulated other comprehensive income (loss) consisted of the following: (In millions) Foreign Currency Hedging Defined Pension Accumulated Other Accumulated Other December 31, 2021 $ (1,158.4) $ (17.3) $ (129.3) $ (1,305.0) $ (5.7) Other comprehensive income (loss) before reclassifications, net of tax 125.3 (14.9) (0.2) 110.2 0.4 Reclassification adjustment for net losses included in net income (loss), net of tax — 6.4 3.1 9.5 — Other comprehensive income (loss), net of tax 125.3 (8.5) 2.9 119.7 0.4 March 31, 2022 $ (1,033.1) $ (25.8) $ (126.4) $ (1,185.3) $ (5.3) Reclassifications out of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended March 31, (In millions) 2022 2021 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Affected Line Item in the Condensed Consolidated Statements of Income Gains (losses) on hedging instruments Foreign exchange contracts $ (4.6) $ (10.4) Revenue (0.4) 8.3 Cost of sales (0.1) 0.1 Selling, general and administrative expense (4.0) 4.0 Other income (expense), net (9.1) 2.0 Income (loss) before income taxes (2.7) (0.7) Provision for income taxes $ (6.4) $ 2.7 Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) $ (0.1) $ (0.1) (a) Amortization of net actuarial loss (3.4) (6.9) (a) (3.5) (7.0) Loss before income taxes (0.4) (2.1) Provision for income taxes $ (3.1) $ (4.9) Net loss (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Under the Amended and Restated TechnipFMC plc Incentive Award Plan (the “Plan”), we may grant certain incentives and awards to our officers, employees, non-employee directors and consultants of the Company 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. As of March 31, 2022, 3.3 million ordinary shares were available for future grant. We recognize compensation expense and the corresponding tax benefits for awards under the Plan. Share-based compensation expense for non-vested share options, performance-based shares and restricted stock units was $9.9 million and $3.4 million for the three months ended March 31, 2022 and 2021, respectively. |
IMPAIRMENT, RESTRUCTURING AND O
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSES | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, (In millions) 2022 2021 Subsea $ (3.4) 19.7 Surface Technologies 1.6 2.8 Corporate and other 2.8 3.0 Total impairment, restructuring and other expenses $ 1.0 $ 25.5 During the three months ended March 31, 2021, we recorded $18.8 million of impairment charges, primarily relating to our operating lease right-of-use assets. In addition, we recorded $6.7 million of restructuring and other charges, primarily relating to severance and facilities restructuring costs. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
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 five 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 condensed consolidated financial position, results of operations or cash flows. Guarantees consisted of the following: (In millions) March 31, December 31, Financial guarantees (a) $ 175.5 $ 177.4 Performance guarantees (b) 1,103.1 1,069.0 Maximum potential undiscounted payments $ 1,278.6 $ 1,246.4 (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. We believe the ultimate resolution of our known contingencies will not materially adversely 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. These actions and disputes can involve our agents, suppliers, clients and venture partners, and can include claims related to payment of fees, service quality and ownership arrangements. We are unable to predict the ultimate outcome of these actions because of their inherent uncertainty. However, we believe 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 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 the 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 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 a resolution. We remain committed to finding a resolution with the PNF and will maintain a $70.0 million provision related to this investigation. Additionally, the PNF recently informed us that it is reviewing historical projects in Angola. We are not aware of any evidence that would support a finding of liability with respect to these projects, or whether the PNF would seek any additional penalty. As we continue our discussions with PNF towards a potential resolution of all of these matters, 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 anti-corruption laws and regulations that it may seek to impose in appropriate circumstances including, but not limited to, fines, penalties, confiscations 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 March 31, 2022 and December 31, 2021, 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 | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our provision for income taxes for the three months ended March 31, 2022 and 2021 reflected effective tax rates of (491.4)% and 5.4%, respectively. The year-over-year decrease in the effective tax rate was primarily due to the increased impact of losses in jurisdictions with a full valuation allowance and a change in geographical profit mix year over year. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed 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 speculative purposes. 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 is 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 condensed consolidated balance sheets. As of March 31, 2022, we held the following material net positions: Net Notional Amount (In millions) USD Equivalent Euro 1,194.1 1,325.6 Norwegian krone 2,095.9 240.0 Australian dollar 257.7 192.8 Singapore dollar 110.9 81.9 Canadian dollar 20.3 16.2 Indonesian rupiah 226,122.8 15.7 Indian rupee 690.3 9.1 Russian ruble (0.4) — Mexican peso (63.7) (3.2) Kuwaiti dinar (3.3) (10.9) Brazilian real (380.5) (80.3) Malaysian ringgit (623.4) (148.3) British pound (186.6) (244.9) U.S. dollar (1,496.5) (1,496.5) 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. As of March 31, 2022, our portfolio of these instruments included the following material net positions: Net Notional Amount (In millions) USD Equivalent Brazilian real 102.4 21.6 Norwegian krone 18.4 2.1 Euro (6.8) (7.6) U.S. dollar (11.5) (11.5) Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. See Note 19 for further details. Accordingly, the estimates presented may not be indicative of the amounts 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 condensed consolidated balance sheets: March 31, 2022 December 31, 2021 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 150.5 $ 181.4 $ 106.4 $ 139.5 Long-term - Derivative financial instruments 143.7 168.8 10.5 15.5 Total derivatives designated as hedging instruments 294.2 350.2 116.9 155.0 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments 28.0 27.7 3.9 21.5 Long-term - Derivative financial instruments 1.2 — — — Total derivatives not designated as hedging instruments 29.2 27.7 3.9 21.5 Total derivatives $ 323.4 $ 377.9 $ 120.8 $ 176.5 Cash flow hedges of forecasted transactions, net of tax, which qualify for hedge accounting, resulted in accumulated other comprehensive losses of $27.3 million and $18.7 million as of March 31, 2022 and December 31, 2021, respectively. We expect to transfer an approximate $8.0 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 2024. The following table presents the gains (losses) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges: Gain (Loss) Recognized in OCI Three Months Ended March 31, (In millions) 2022 2021 Foreign exchange contracts $ (19.8) $ (20.2) The following tables represent the effect of cash flow hedge accounting in the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021: (In millions) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 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 Amounts reclassified from accumulated OCI to income (loss) $ (4.6) $ (0.4) $ (0.1) $ (4.0) $ (10.4) $ 8.3 $ 0.1 $ 4.0 Amounts excluded from effectiveness testing 0.7 (1.3) 0.1 (15.8) 1.0 (1.2) 0.9 (0.6) Total cash flow hedge gain (loss) recognized in income (3.9) (1.7) — (19.8) (9.4) 7.1 1.0 3.4 Gain (loss) recognized in income on derivatives not designated as hedging instruments (0.1) (0.4) — 29.5 0.2 0.5 — (11.4) Total $ (4.0) $ (2.1) $ — $ 9.7 $ (9.2) $ 7.6 $ 1.0 $ (8.0) Balance Sheet Offsetting - We execute derivative contracts with counterparties that consent to a master netting agreement, which permits net settlement of the gross derivative assets against gross derivative liabilities. Each instrument is accounted for individually and assets and liabilities are not offset. As of March 31, 2022 and December 31, 2021, we had no collateralized derivative contracts. The following tables present both gross information and net information of recognized derivative instruments: March 31, 2022 December 31, 2021 (In millions) Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Derivative assets $ 323.4 $ (162.9) $ 160.5 $ 120.8 $ (78.6) $ 42.2 Derivative liabilities $ 377.9 $ (162.9) $ 215.0 $ 176.5 $ (78.6) $ 97.9 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2022 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Investment in Technip Energies $ 49.1 $ 49.1 $ — $ — $ 317.3 $ 317.3 $ — $ — Equity securities (a) 23.2 23.2 — — 25.0 25.0 — — Money market fund 2.2 — 2.2 — 2.4 — 2.4 — Stable value fund (b) 0.3 — — — 0.3 — — — Held-to-maturity debt securities 23.3 — 23.3 — 24.0 — 24.0 — Derivative financial instruments Foreign exchange contracts 323.4 — 323.4 — 120.8 — 120.8 — Assets held for sale 5.0 — — 5.0 5.0 — — 5.0 Total assets $ 426.5 $ 72.3 $ 348.9 $ 5.0 $ 494.8 $ 342.3 $ 147.2 $ 5.0 Liabilities Derivative financial instruments Foreign exchange contracts 377.9 — 377.9 — 176.5 — 176.5 — Total liabilities $ 377.9 $ — $ 377.9 $ — $ 176.5 $ — $ 176.5 $ — (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. Investment in Technip Energies - The fair value of our investment in Technip Energies is based on quoted prices that we have the ability to access in public markets; see Note 10 for further details. Equity securities - The fair value measurement of our traded securities is based on quoted prices that we have the ability to access in public markets. Stable value fund and Money market fund - The 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 held for sale - The fair value of our assets held for sale was determined using a market approach that took into consideration the expected sales price. 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. We currently 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 18 for further details. Nonrecurring Fair Value Measurements Fair value of long-lived, non-financial assets - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amounts of such assets may not be recoverable. The following summarizes impairments of our long-lived assets and related post-impairment fair value for the three months ended March 31, 2021: Three Months Ended March 31, 2021 (In millions) Impairment Fair Value Long-lived assets (a) $ 18.8 $ 31.6 (a) Measuring these asset groups for recoverability required the use of unobservable inputs that require significant judgment. Such judgments include expected future asset utilization while taking into account reduced future capital spending by certain customers in response to market conditions. 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. Fair value of debt - We use a market approach to determine the fair value of our fixed-rate debt using observable market data, which results in a Level 2 fair value measurement. The estimated fair value of our private placement notes, senior notes and synthetic bonds was $1,643.5 million and $1,706.1 million as of March 31, 2022 and December 31, 2021, respectively. Credit risk - By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectability assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement, which permits the net settlement of gross derivative assets against gross derivative liabilities. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On April 20, 2022, we announced a commencement of a tender offer (the “Tender Offer”), subject to certain terms and conditions, for up to $320.0 million aggregate principal amount (the “Maximum Tender Amount”) of our 6.50% Senior Notes due 2026 (the “Notes”). In connection with the Tender Offer, we also commenced the solicitation of consents (the “Consents”) of holders with respect to the Notes (the “Consent Solicitation”) to certain proposed amendments to the indenture for the Notes (the |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the 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, 2021. 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 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, 2022. |
Reclassifications and revisions | Reclassifications and revision Certain prior-year amounts have been reclassified to conform to the current year’s presentation. The Company identified an error in the presentation of certain cash flow items related to discontinued operations that impacted cash and cash equivalents at the beginning of period, cash required by financing activities from discontinued operations and change in cash and cash equivalents line items within the previously issued statement of cash flows for the three months ended March 31, 2021. Management assessed the materiality of the misstatement described above on prior period financial statements in accordance with SEC Staff Bulletin (“SAB”) No. 99, Materiality, Codified in ASC 250-10, Accounting Changes and Error Corrections (“ASC 250”) |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Selected Line Items from the Financial Statements Illustrating the Effects of these Revisions | However, in order to achieve comparability in the financial statements, the Company has determined it appropriate to revise the following financial statement line items (amounts are in millions): Three Months Ended March 31, 2021 (In millions) As previously reported Revision As Revised Cash required by financing activities from continuing operations $ (866.6) $ — $ (866.6) Cash required by financing activities from discontinued operations (79.1) (3,538.6) (3,617.7) Cash required by financing activities (945.7) (3,538.6) (4,484.3) Change in cash and cash equivalents (516.4) (3,538.6) (4,055.0) Cash and cash equivalents, beginning of period 1,269.2 3,538.6 4,807.8 Cash and cash equivalents, end of period $ 752.8 $ — $ 752.8 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Income, Assets and liabilities of discontinued operations | The following table summarizes the components of income from discontinued operations, net of tax: Three Months Ended March 31, (In millions) 2022 2021 Revenue $ — $ 906.0 Costs and expenses — (889.3) Other expense, net — (18.6) Loss from discontinued operations before income taxes $ — $ (1.9) Income taxes 19.4 58.3 Loss from discontinued operations, net of income taxes $ (19.4) $ (60.2) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following tables present total revenue by geography for each reportable segment for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (In millions) Subsea Surface Technologies Subsea Surface Technologies Europe and Central Asia $ 356.0 $ 39.2 $ 268.4 $ 43.8 North America 200.4 116.2 230.1 74.5 Latin America 324.8 21.6 320.8 17.9 Asia Pacific 221.5 23.6 245.0 24.5 Africa 183.1 8.5 295.3 9.6 Middle East 3.3 57.6 26.9 75.2 Total revenue $ 1,289.1 $ 266.7 $ 1,386.5 $ 245.5 The following tables present total revenue by contract type for each reportable segment for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 March 31, 2021 (In millions) Subsea Surface Technologies Subsea Surface Technologies Services $ 845.6 $ 51.1 $ 793.4 $ 32.8 Products 431.5 182.6 581.8 191.2 Lease 12.0 33.0 11.3 21.5 Total revenue $ 1,289.1 $ 266.7 $ 1,386.5 $ 245.5 |
Schedule of contract balances | The following table provides information about net contract assets (liabilities) as of March 31, 2022 and December 31, 2021: (In millions) March 31, December 31, $ change % change Contract assets $ 983.4 $ 966.0 $ 17.4 1.8 Contract liabilities (834.7) (1,012.9) 178.2 17.6 Net contract assets (liabilities) $ 148.7 $ (46.9) $ 195.6 417.1 |
Schedule of remaining revenue performance obligations | The following table details the order backlog for each business segment as of March 31, 2022: (In millions) 2022 2023 Thereafter Subsea $ 2,933.0 $ 2,880.0 $ 1,928.3 Surface Technologies 292.0 125.2 735.6 Total order backlog $ 3,225.0 $ 3,005.2 $ 2,663.9 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment revenue and segment operating profit | Segment revenue and segment operating profit (loss) were as follows: Three Months Ended March 31, (In millions) 2022 2021 Segment revenue Subsea $ 1,289.1 $ 1,386.5 Surface Technologies 266.7 245.5 Total revenue $ 1,555.8 $ 1,632.0 Segment operating profit Subsea $ 54.0 $ 37.0 Surface Technologies 3.7 8.2 Total segment operating profit $ 57.7 $ 45.2 Corporate items Corporate expense (a) (29.5) (28.8) Net interest expense (33.9) (34.5) Loss on early extinguishment of debt — (23.5) Income (loss) from investment in Technip Energies (28.5) 470.1 Foreign exchange gains 28.4 28.1 Total corporate items (63.5) 411.4 Income (loss) before income taxes (b) $ (5.8) $ 456.6 (a) Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits. (b) Includes amounts attributable to non-controlling interests. |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 (loss) per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2022 2021 Income (loss) from continuing operations attributable to TechnipFMC plc $ (42.3) $ 430.3 Loss from discontinued operations attributable to TechnipFMC plc (19.4) (62.1) Net income (loss) attributable to TechnipFMC plc $ (61.7) $ 368.2 Weighted average number of shares outstanding 451.1 449.7 Dilutive effect of restricted stock units — 1.4 Total shares and dilutive securities 451.1 451.1 Basic and diluted earnings (loss) per share attributable to TechnipFMC plc: Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Basic $ (0.09) $ 0.96 Diluted $ (0.09) $ 0.95 Loss per share from discontinued operations attributable to TechnipFMC plc Basic and diluted $ (0.04) $ (0.14) Total earnings (loss) per share attributable to TechnipFMC plc Basic $ (0.13) $ 0.82 Diluted $ (0.13) $ 0.81 |
Schedule of antidilutive securities excluded from computation of earnings per share | Weighted average shares of the following share-based compensation awards were excluded from the calculation of diluted weighted average number of shares, where the assumed proceeds exceed the average market price from the calculation of diluted weighted average number of shares, because their effect would be anti-dilutive: Three Months Ended March 31, (millions of shares) 2022 2021 Share option awards 1.6 1.7 Restricted share units 0.7 4.9 Performance shares 0.3 — Total 2.6 6.6 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Financing receivable credit quality indicators | The table below summarizes the amortized cost basis of financial assets by years of origination and credit quality. The key credit quality indicator is updated as of March 31, 2022. (In millions) Year of origination Balance as of March 31, 2022 Balance as of December 31, 2021 Loans receivables, security deposits and other Moody’s rating Ba2 2019 $ 62.6 $ 50.9 Debt securities at amortized cost Moody’s rating B3 2019 23.9 24.0 Total financial assets $ 86.5 $ 74.9 |
Financing receivable, allowance for credit loss | The table below shows the roll-forward of allowance for credit losses as of March 31, 2022 and 2021, respectively. Balance as of March 31, 2022 (In millions) Trade receivables Contract assets Loans receivable Security deposit and other Held-to-maturity debt securities Allowance for credit losses at December 31, 2021 $ 38.1 $ 1.1 $ 0.3 $ 0.3 $ 2.7 Current period provision (release) for expected credit losses 0.9 0.2 (0.1) (0.3) (0.6) Recoveries (0.5) — — — — Allowance for credit losses at March 31, 2022 $ 38.5 $ 1.3 $ 0.2 $ — $ 2.1 Balance as of March 31, 2021 (In millions) Trade receivables Contract assets Loans receivable Security deposit and other Held-to-maturity debt securities Allowance for credit losses at December 31, 2020 $ 40.2 $ 2.4 $ 7.5 $ 0.4 $ 0.5 Current period provision (release) for expected credit losses 3.8 (0.6) (0.5) 0.2 (0.5) Recoveries (5.5) (0.7) (1.1) — — Allowance for credit losses at March 31, 2021 $ 38.5 $ 1.1 $ 5.9 $ 0.6 $ — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Components of inventories | Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 291.4 $ 250.1 Work in process 189.3 178.7 Finished goods 593.7 603.1 Inventories, net $ 1,074.4 $ 1,031.9 |
OTHER CURRENT ASSETS & OTHER _2
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Current Assets and Other Current Liabilities [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following: (In millions) March 31, December 31, Value - added tax receivables $ 237.3 $ 222.4 Withholding tax and other receivables 203.9 176.7 Prepaid expenses 74.4 50.7 Current financial assets at amortized cost 25.7 21.9 Held-to-maturity investments 9.5 8.8 Assets held for sale 5.0 5.0 Other 27.2 26.8 Total other current assets $ 583.0 $ 512.3 |
Schedule of other current liabilities | Other current liabilities consisted of the following: (In millions) March 31, December 31, Legal provisions 126.7 121.7 Warranty accruals and project contingencies $ 119.0 $ 119.5 Social security liability 77.1 70.4 Value - added tax and other taxes payable 64.8 71.0 Compensation accrual 18.2 85.7 Provisions 8.6 23.6 Current portion of accrued pension and other post-retirement benefits 4.5 5.2 Other accrued liabilities 163.9 163.3 Total other current liabilities $ 582.8 $ 660.4 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions receivables | Accounts receivable consisted of receivables due from the following related parties: (In millions) March 31, December 31, 2021 Dofcon Navegacao $ 19.3 $ 22.7 Techdof Brasil AS 8.5 4.5 Others 1.0 2.5 Total accounts receivable $ 28.8 $ 29.7 |
Schedule of related party transactions revenue and expenses | Revenue consisted of amounts from following related parties: Three Months Ended March 31, (In millions) 2022 2021 Equinor ASA $ — $ 95.5 Dofcon Navegacao 1.6 0.2 Techdof Brasil AS — 3.5 Others 1.7 4.4 Total revenue $ 3.3 $ 103.6 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: (In millions) March 31, December 31, 3.40% 2012 Private placement notes due 2022 $ 166.5 $ 169.9 3.15% 2013 Private placement notes due 2023 283.1 288.8 5.75% 2020 Private placement notes due 2025 222.0 226.5 6.50% Senior notes due 2026 633.1 633.1 4.00% 2012 Private placement notes due 2027 83.3 84.9 4.00% 2012 Private placement notes due 2032 111.0 113.3 3.75% 2013 Private placement notes due 2033 111.0 113.3 Bank borrowings and other 416.0 397.4 Unamortized debt issuance costs and discounts (20.9) (22.3) Total debt 2,005.1 2,004.9 Less: current borrowings 281.8 277.6 Long-term debt $ 1,723.3 $ 1,727.3 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 $ (1,158.4) $ (17.3) $ (129.3) $ (1,305.0) $ (5.7) Other comprehensive income (loss) before reclassifications, net of tax 125.3 (14.9) (0.2) 110.2 0.4 Reclassification adjustment for net losses included in net income (loss), net of tax — 6.4 3.1 9.5 — Other comprehensive income (loss), net of tax 125.3 (8.5) 2.9 119.7 0.4 March 31, 2022 $ (1,033.1) $ (25.8) $ (126.4) $ (1,185.3) $ (5.3) |
Reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended March 31, (In millions) 2022 2021 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Affected Line Item in the Condensed Consolidated Statements of Income Gains (losses) on hedging instruments Foreign exchange contracts $ (4.6) $ (10.4) Revenue (0.4) 8.3 Cost of sales (0.1) 0.1 Selling, general and administrative expense (4.0) 4.0 Other income (expense), net (9.1) 2.0 Income (loss) before income taxes (2.7) (0.7) Provision for income taxes $ (6.4) $ 2.7 Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) $ (0.1) $ (0.1) (a) Amortization of net actuarial loss (3.4) (6.9) (a) (3.5) (7.0) Loss before income taxes (0.4) (2.1) Provision for income taxes $ (3.1) $ (4.9) Net 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) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of impairment, restructuring and other expenses | Impairment, restructuring and other expenses were as follows: Three Months Ended March 31, (In millions) 2022 2021 Subsea $ (3.4) 19.7 Surface Technologies 1.6 2.8 Corporate and other 2.8 3.0 Total impairment, restructuring and other expenses $ 1.0 $ 25.5 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of guarantor obligations | Guarantees consisted of the following: (In millions) March 31, December 31, Financial guarantees (a) $ 175.5 $ 177.4 Performance guarantees (b) 1,103.1 1,069.0 Maximum potential undiscounted payments $ 1,278.6 $ 1,246.4 (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) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | As of March 31, 2022, we held the following material net positions: Net Notional Amount (In millions) USD Equivalent Euro 1,194.1 1,325.6 Norwegian krone 2,095.9 240.0 Australian dollar 257.7 192.8 Singapore dollar 110.9 81.9 Canadian dollar 20.3 16.2 Indonesian rupiah 226,122.8 15.7 Indian rupee 690.3 9.1 Russian ruble (0.4) — Mexican peso (63.7) (3.2) Kuwaiti dinar (3.3) (10.9) Brazilian real (380.5) (80.3) Malaysian ringgit (623.4) (148.3) British pound (186.6) (244.9) U.S. dollar (1,496.5) (1,496.5) 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. As of March 31, 2022, our portfolio of these instruments included the following material net positions: Net Notional Amount (In millions) USD Equivalent Brazilian real 102.4 21.6 Norwegian krone 18.4 2.1 Euro (6.8) (7.6) U.S. dollar (11.5) (11.5) |
Schedule of fair value of derivative instruments | The following table presents the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheets: March 31, 2022 December 31, 2021 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 150.5 $ 181.4 $ 106.4 $ 139.5 Long-term - Derivative financial instruments 143.7 168.8 10.5 15.5 Total derivatives designated as hedging instruments 294.2 350.2 116.9 155.0 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments 28.0 27.7 3.9 21.5 Long-term - Derivative financial instruments 1.2 — — — Total derivatives not designated as hedging instruments 29.2 27.7 3.9 21.5 Total derivatives $ 323.4 $ 377.9 $ 120.8 $ 176.5 |
Schedule of location of gains (losses) related to derivative instruments designated as cash flow hedges | The following table presents the gains (losses) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges: Gain (Loss) Recognized in OCI Three Months Ended March 31, (In millions) 2022 2021 Foreign exchange contracts $ (19.8) $ (20.2) |
Schedule of gain (loss) recognized in income related to hedges and derivatives | The following tables represent the effect of cash flow hedge accounting in the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021: (In millions) Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 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 Amounts reclassified from accumulated OCI to income (loss) $ (4.6) $ (0.4) $ (0.1) $ (4.0) $ (10.4) $ 8.3 $ 0.1 $ 4.0 Amounts excluded from effectiveness testing 0.7 (1.3) 0.1 (15.8) 1.0 (1.2) 0.9 (0.6) Total cash flow hedge gain (loss) recognized in income (3.9) (1.7) — (19.8) (9.4) 7.1 1.0 3.4 Gain (loss) recognized in income on derivatives not designated as hedging instruments (0.1) (0.4) — 29.5 0.2 0.5 — (11.4) Total $ (4.0) $ (2.1) $ — $ 9.7 $ (9.2) $ 7.6 $ 1.0 $ (8.0) |
Schedule of derivative assets, gross and net | The following tables present both gross information and net information of recognized derivative instruments: March 31, 2022 December 31, 2021 (In millions) Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Derivative assets $ 323.4 $ (162.9) $ 160.5 $ 120.8 $ (78.6) $ 42.2 Derivative liabilities $ 377.9 $ (162.9) $ 215.0 $ 176.5 $ (78.6) $ 97.9 |
Schedule of derivative liabilities, gross and net | The following tables present both gross information and net information of recognized derivative instruments: March 31, 2022 December 31, 2021 (In millions) Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Gross Amount Recognized Gross Amounts Not Offset, Permitted Under Master Netting Agreements Net Amount Derivative assets $ 323.4 $ (162.9) $ 160.5 $ 120.8 $ (78.6) $ 42.2 Derivative liabilities $ 377.9 $ (162.9) $ 215.0 $ 176.5 $ (78.6) $ 97.9 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2022 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Investment in Technip Energies $ 49.1 $ 49.1 $ — $ — $ 317.3 $ 317.3 $ — $ — Equity securities (a) 23.2 23.2 — — 25.0 25.0 — — Money market fund 2.2 — 2.2 — 2.4 — 2.4 — Stable value fund (b) 0.3 — — — 0.3 — — — Held-to-maturity debt securities 23.3 — 23.3 — 24.0 — 24.0 — Derivative financial instruments Foreign exchange contracts 323.4 — 323.4 — 120.8 — 120.8 — Assets held for sale 5.0 — — 5.0 5.0 — — 5.0 Total assets $ 426.5 $ 72.3 $ 348.9 $ 5.0 $ 494.8 $ 342.3 $ 147.2 $ 5.0 Liabilities Derivative financial instruments Foreign exchange contracts 377.9 — 377.9 — 176.5 — 176.5 — Total liabilities $ 377.9 $ — $ 377.9 $ — $ 176.5 $ — $ 176.5 $ — (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 fair value measurements, nonrecurring | The following summarizes impairments of our long-lived assets and related post-impairment fair value for the three months ended March 31, 2021: Three Months Ended March 31, 2021 (In millions) Impairment Fair Value Long-lived assets (a) $ 18.8 $ 31.6 (a) Measuring these asset groups for recoverability required the use of unobservable inputs that require significant judgment. Such judgments include expected future asset utilization while taking into account reduced future capital spending by certain customers in response to market conditions. |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cash required by financing activities from continuing operations | $ (13.1) | $ (866.6) |
Cash required by financing activities from discontinued operations | 0 | (3,617.7) |
Cash required by financing activities | (13.1) | (4,484.3) |
Change in cash and cash equivalents | (124.4) | (4,055) |
Cash and cash equivalents, beginning of period | 1,327.4 | 4,807.8 |
Cash and cash equivalents, end of period | $ 1,203 | 752.8 |
As previously reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cash required by financing activities from continuing operations | (866.6) | |
Cash required by financing activities from discontinued operations | (79.1) | |
Cash required by financing activities | (945.7) | |
Change in cash and cash equivalents | (516.4) | |
Cash and cash equivalents, beginning of period | 1,269.2 | |
Cash and cash equivalents, end of period | 752.8 | |
Revision | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cash required by financing activities from continuing operations | 0 | |
Cash required by financing activities from discontinued operations | (3,538.6) | |
Cash required by financing activities | (3,538.6) | |
Change in cash and cash equivalents | (3,538.6) | |
Cash and cash equivalents, beginning of period | 3,538.6 | |
Cash and cash equivalents, end of period | $ 0 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narratives (Details) | Feb. 16, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Exchange Ratio | 0.2 |
Technip Energies N.V. | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Spin off, ownership interest percentage by parent | 50.10% |
DISCONTINUED OPERATIONS - Incom
DISCONTINUED OPERATIONS - Income from discontinued operations, net of tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income taxes | $ 19.4 | $ 58.3 |
Loss from discontinued operations, net of income taxes | (19.4) | (60.2) |
Spinoff | Technip Energies N.V. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue | 0 | 906 |
Costs and expenses | 0 | (889.3) |
Other expense, net | 0 | (18.6) |
Loss from discontinued operations before income taxes | 0 | (1.9) |
Loss from discontinued operations, net of income taxes | $ (19.4) | $ (60.2) |
REVENUE - Disaggregation of rev
REVENUE - Disaggregation of revenue, geographical (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Lease revenue | $ 45 | $ 32.8 |
Total revenue | 1,555.8 | 1,632 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 896.7 | 826.2 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 614.1 | 773 |
Subsea | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,289.1 | 1,386.5 |
Lease revenue | 12 | 11.3 |
Subsea | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,289.1 | 1,386.5 |
Subsea | Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 845.6 | 793.4 |
Subsea | Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 431.5 | 581.8 |
Subsea | Europe and Central Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 356 | 268.4 |
Subsea | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 200.4 | 230.1 |
Subsea | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 324.8 | 320.8 |
Subsea | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 221.5 | 245 |
Subsea | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 183.1 | 295.3 |
Subsea | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3.3 | 26.9 |
Surface Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 266.7 | 245.5 |
Lease revenue | 33 | 21.5 |
Surface Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 266.7 | 245.5 |
Surface Technologies | Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 51.1 | 32.8 |
Surface Technologies | Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 182.6 | 191.2 |
Surface Technologies | Europe and Central Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 39.2 | 43.8 |
Surface Technologies | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 116.2 | 74.5 |
Surface Technologies | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21.6 | 17.9 |
Surface Technologies | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 23.6 | 24.5 |
Surface Technologies | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8.5 | 9.6 |
Surface Technologies | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 57.6 | $ 75.2 |
REVENUE - Contract balances (De
REVENUE - Contract balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 983.4 | $ 966 | |
Contract liabilities | (834.7) | (1,012.9) | |
Net contract assets (liabilities) | 148.7 | $ (46.9) | |
Contract assets, increase (decrease) | $ 17.4 | ||
Contract with customer, asset, net, current, increase (decrease), (in percent) | 1.80% | ||
Contract (liabilities), (increase) decrease | $ 178.2 | ||
Contract with customer liability, current, increase (decrease), (in percent) | 17.60% | ||
Net contract assets (liabilities), increase (decrease) | $ 195.6 | ||
Contract assets (liabilities), current, net, increase (decrease), (in percent) | 417.10% | ||
Contract with customer, liability, revenue recognized | $ 112.9 | $ 128.4 | |
Contract with customer, performance obligation satisfied in previous period | $ (12.2) | $ (5.3) |
REVENUE - Performance obligatio
REVENUE - Performance obligations (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, total amount | $ 8,894.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 36.00% |
Revenue, remaining performance obligation, amount | $ 3,225 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,933 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 292 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 64.00% |
Revenue, remaining performance obligation, amount | $ 3,005.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,880 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 125.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,663.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1,928.3 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 735.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of segment revenue and segment operating profit (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting, Measurement Disclosures [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information | ||
Revenue | $ 1,555.8 | $ 1,632 |
Total segment operating profit | 57.7 | 45.2 |
Corporate expense | (29.5) | (28.8) |
Net interest expense | (33.9) | (34.5) |
Loss on early extinguishment of debt | 0 | (23.5) |
Income (loss) from investment in Technip Energies | (28.5) | 470.1 |
Foreign exchange gains | 28.4 | 28.1 |
Income (loss) before income taxes | (5.8) | 456.6 |
Operating Segments | Subsea | ||
Segment Reporting Information | ||
Revenue | 1,289.1 | 1,386.5 |
Total segment operating profit | 54 | 37 |
Operating Segments | Surface Technologies | ||
Segment Reporting Information | ||
Revenue | 266.7 | 245.5 |
Total segment operating profit | 3.7 | 8.2 |
Corporate | ||
Segment Reporting Information | ||
Total corporate items | $ (63.5) | $ 411.4 |
EARNINGS (LOSS) PER SHARE - Rec
EARNINGS (LOSS) PER SHARE - Reconciliation of number of shares used for basic and diluted earnings per share ("Eps") calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Income (loss) from continuing operations attributable to TechnipFMC plc | $ (42.3) | $ 430.3 |
Loss from discontinued operations attributable to TechnipFMC plc | (19.4) | (62.1) |
Net income (loss) attributable to TechnipFMC plc | $ (61.7) | $ 368.2 |
Weighted average number of shares outstanding (in shares) | 451.1 | 449.7 |
Total shares and dilutive securities (in shares) | 451.1 | 451.1 |
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Basic (usd per share) | $ (0.09) | $ 0.96 |
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc Diluted (usd per share) | (0.09) | 0.95 |
Loss per share from discontinued operations attributable to TechnipFMC plc basic (usd per share) | (0.04) | (0.14) |
Loss per share from discontinued operations attributable to TechnipFMC plc diluted (usd per share) | (0.04) | (0.14) |
Total earnings (loss) per share attributable to TechnipFMC plc Basic (usd per share) | (0.13) | 0.82 |
Total earnings (loss) per share attributable to TechnipFMC plc Diluted (usd per share) | $ (0.13) | $ 0.81 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2.6 | 6.6 |
Share option awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1.6 | 1.7 |
Restricted share units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.7 | 4.9 |
Performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.3 | 0 |
Share option awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 4.8 | |
Restricted share units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Dilutive effect of restricted stock units (in shares) | 0 | 1.4 |
RECEIVABLES - Amortized cost ba
RECEIVABLES - Amortized cost basis of financial assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, originated in fiscal year before latest fiscal year | $ 86.5 | $ 74.9 |
Moody's, Ba2 Rating | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, originated in fiscal year before latest fiscal year | 62.6 | 50.9 |
Moody's, B3 Rating | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, originated in fiscal year before latest fiscal year | $ 23.9 | $ 24 |
RECEIVABLES - Roll-forward of a
RECEIVABLES - Roll-forward of allowance for credit losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Contract assets | ||
Allowance for credit losses at December 31, 2021 | $ 1.1 | |
Allowance for credit losses at March 31, 2022 | 1.3 | |
Trade receivables | ||
Trade receivables | ||
Allowance for credit losses at December 31, 2021 | 38.1 | $ 40.2 |
Current period provision (release) for expected credit losses | 0.9 | 3.8 |
Recoveries | (0.5) | (5.5) |
Allowance for credit losses at March 31, 2022 | 38.5 | 38.5 |
Contract assets | ||
Contract assets | ||
Allowance for credit losses at December 31, 2021 | 1.1 | 2.4 |
Current period provision (release) for expected credit losses | 0.2 | (0.6) |
Recoveries | 0 | (0.7) |
Allowance for credit losses at March 31, 2022 | 1.3 | 1.1 |
Loans receivable | ||
Loans receivable | ||
Allowance for credit losses at December 31, 2021 | 0.3 | 7.5 |
Current period provision (release) for expected credit losses | (0.1) | (0.5) |
Recoveries | 0 | (1.1) |
Allowance for credit losses at March 31, 2022 | 0.2 | 5.9 |
Security deposit and other | ||
Security deposit and other | ||
Allowance for credit losses at December 31, 2021 | 0.3 | 0.4 |
Current period provision (release) for expected credit losses | (0.3) | 0.2 |
Recoveries | 0 | 0 |
Allowance for credit losses at March 31, 2022 | 0 | 0.6 |
Held-to-maturity debt securities | ||
Held-to-maturity debt securities | ||
Allowance for credit losses at December 31, 2021 | 2.7 | 0.5 |
Current period provision (release) for expected credit losses | (0.6) | (0.5) |
Recoveries | 0 | 0 |
Allowance for credit losses at March 31, 2022 | $ 2.1 | $ 0 |
INVENTORIES - Components of inv
INVENTORIES - Components of inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 291.4 | $ 250.1 |
Work in process | 189.3 | 178.7 |
Finished goods | 593.7 | 603.1 |
Inventories, net | $ 1,074.4 | $ 1,031.9 |
OTHER CURRENT ASSETS & OTHER _3
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES - Other current assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Value - added tax receivables | $ 237.3 | $ 222.4 |
Withholding tax and other receivables | 203.9 | 176.7 |
Prepaid expenses | 74.4 | 50.7 |
Current financial assets at amortized cost | 25.7 | 21.9 |
Held-to-maturity investments | 9.5 | 8.8 |
Assets held for sale | 5 | 5 |
Other | 27.2 | 26.8 |
Total other current assets | $ 583 | $ 512.3 |
OTHER CURRENT ASSETS & OTHER _4
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES - Other current liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Warranty accruals and project contingencies | $ 119 | $ 119.5 |
Legal provisions | 126.7 | 121.7 |
Value - added tax and other taxes payable | 64.8 | 71 |
Compensation accrual | 18.2 | 85.7 |
Social security liability | 77.1 | 70.4 |
Provisions | 8.6 | 23.6 |
Current portion of accrued pension and other post-retirement benefits | 4.5 | 5.2 |
Other accrued liabilities | 163.9 | 163.3 |
Total other current liabilities | $ 582.8 | $ 660.4 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments | |||
Investment in Technip Energies | $ 5.4 | $ 7.7 | |
Equity method investment | 292.2 | $ 292.4 | |
Investment in Technip Energies | 49.1 | $ 317.3 | |
Investment gain (loss) | (28.5) | $ 470.1 | |
Magnora ASA, Magnora Offshore Wind | |||
Schedule of Equity Method Investments | |||
Equity method investment | $ 2.9 | ||
Equity method investment, ownership percentage | 20.00% | ||
Technip Energies | |||
Schedule of Equity Method Investments | |||
Equity method investment, ownership percentage | 2.20% | ||
Equity securities, number of shares sold (in shares) | 4,000 |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Trade receivables (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Total accounts receivable | $ 28.8 | $ 29.7 |
Dofcon Navegacao | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Total accounts receivable | 19.3 | 22.7 |
Techdof Brasil AS | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Total accounts receivable | 8.5 | 4.5 |
Others | Other Affiliates | ||
Related Party Transaction [Line Items] | ||
Total accounts receivable | $ 1 | $ 2.5 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Dofcon Brasil AS | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Note receivables | $ 12.7 | $ 12.6 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Revenue | $ 3.3 | $ 103.6 |
Equinor ASA | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Revenue | 0 | 95.5 |
Dofcon Navegacao | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Revenue | 1.6 | 0.2 |
Techdof Brasil AS | Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Revenue | 0 | 3.5 |
Others | Other Affiliates | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 1.7 | $ 4.4 |
DEBT - Schedule of long-term de
DEBT - Schedule of long-term debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 29, 2021 |
Debt Instrument | |||
Unamortized debt issuance costs and discounts | $ (20.9) | $ (22.3) | |
Total debt | 2,005.1 | 2,004.9 | |
Less: current borrowings | 281.8 | 277.6 | |
Long-term debt | $ 1,723.3 | $ 1,727.3 | |
Private Placement Notes | 3.40% 2012 Private placement notes due 2022 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 3.40% | 3.40% | |
Long-term debt, gross | $ 166.5 | $ 169.9 | |
Private Placement Notes | 3.15% 2013 Private placement notes due 2023 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 3.15% | 3.15% | |
Long-term debt, gross | $ 283.1 | $ 288.8 | |
Private Placement Notes | 5.75% 2020 Private placement notes due 2025 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 5.75% | 5.75% | |
Long-term debt, gross | $ 222 | $ 226.5 | |
Private Placement Notes | 4.00% 2012 Private placement notes due 2027 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 4.00% | 4.00% | |
Long-term debt, gross | $ 83.3 | $ 84.9 | |
Private Placement Notes | 4.00% 2012 Private placement notes due 2032 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 4.00% | 4.00% | |
Long-term debt, gross | $ 111 | $ 113.3 | |
Private Placement Notes | 3.75% 2013 Private placement notes due 2033 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 3.75% | 3.75% | |
Long-term debt, gross | $ 111 | $ 113.3 | |
Senior Notes | 6.50% Senior notes due 2026 | |||
Debt Instrument | |||
Interest rate, stated percentage (in percent) | 6.50% | ||
Long-term debt, gross | 633.1 | 633.1 | |
Bank borrowings and other | |||
Debt Instrument | |||
Long-term debt, gross | $ 416 | $ 397.4 |
DEBT - Debt financing transacti
DEBT - Debt financing transactions in connection with the spin-off (Details) - USD ($) | Feb. 16, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 29, 2021 |
Line of Credit Facility | |||||
Loss on early extinguishment of debt | $ 0 | $ (23,500,000) | |||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||
Debt instrument, term | 3 years | ||||
Letter of Credit | Revolving Credit Facility | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 450,000,000 | ||||
Senior Notes | 6.50% Senior notes due 2026 | |||||
Line of Credit Facility | |||||
Debt instrument, face amount | $ 1,000,000,000 | ||||
Interest rate, stated percentage (in percent) | 6.50% | ||||
Long-term debt, gross | $ 633,100,000 | $ 633,100,000 |
DEBT - Credit facilities and de
DEBT - Credit facilities and debt (Details) - USD ($) | Feb. 16, 2021 | Mar. 31, 2022 | Jan. 29, 2021 |
Revolving Credit Facility | Minimum | Euro loan | |||
Line of Credit Facility | |||
Debt instrument, basis spread on variable rate | 2.50% | ||
Revolving Credit Facility | Minimum | Base Rate | |||
Line of Credit Facility | |||
Debt instrument, basis spread on variable rate | 1.50% | ||
Revolving Credit Facility | Maximum | Euro loan | |||
Line of Credit Facility | |||
Debt instrument, basis spread on variable rate | 3.50% | ||
Revolving Credit Facility | Maximum | Base Rate | |||
Line of Credit Facility | |||
Debt instrument, basis spread on variable rate | 2.50% | ||
Revolving Credit Facility | Letter of Credit | |||
Line of Credit Facility | |||
Letters of credit outstanding amount | $ 39,600,000 | ||
Line of credit facility borrowing capacity | $ 960,400,000 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Debt instrument, term | 3 years | ||
Senior Notes | 6.50% Senior notes due 2026 | |||
Line of Credit Facility | |||
Debt instrument face amount | $ 1,000,000,000 | ||
Interest rate, stated percentage (in percent) | 6.50% | ||
Senior Notes | Note 2021 | |||
Line of Credit Facility | |||
Debt issuance costs | $ 34,800,000 | ||
Debt issuance costs | $ 25,700,000 |
STOCKHOLDERS_ EQUITY - Accumula
STOCKHOLDERS’ EQUITY - Accumulated other comprehensive loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,418.4 | $ 4,214.3 |
Other comprehensive income (loss), net of tax | 120.1 | (36.9) |
Ending balance | 3,490.4 | 3,695.5 |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,158.4) | |
Other comprehensive income (loss) before reclassifications, net of tax | 125.3 | |
Reclassification adjustment for net losses included in net income (loss), net of tax | 0 | |
Other comprehensive income (loss), net of tax | 125.3 | |
Ending balance | (1,033.1) | |
Hedging | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (17.3) | |
Other comprehensive income (loss) before reclassifications, net of tax | (14.9) | |
Reclassification adjustment for net losses included in net income (loss), net of tax | 6.4 | |
Other comprehensive income (loss), net of tax | (8.5) | |
Ending balance | (25.8) | |
Defined Pension and Other Post-Retirement Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (129.3) | |
Other comprehensive income (loss) before reclassifications, net of tax | (0.2) | |
Reclassification adjustment for net losses included in net income (loss), net of tax | 3.1 | |
Other comprehensive income (loss), net of tax | 2.9 | |
Ending balance | (126.4) | |
Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,305) | (1,622.5) |
Other comprehensive income (loss) before reclassifications, net of tax | 110.2 | |
Reclassification adjustment for net losses included in net income (loss), net of tax | 9.5 | |
Other comprehensive income (loss), net of tax | 119.7 | (37) |
Ending balance | (1,185.3) | $ (1,400.8) |
Accumulated Other Comprehensive Loss Attributable to Non-Controlling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (5.7) | |
Other comprehensive income (loss) before reclassifications, net of tax | 0.4 | |
Reclassification adjustment for net losses included in net income (loss), net of tax | 0 | |
Other comprehensive income (loss), net of tax | 0.4 | |
Ending balance | $ (5.3) |
STOCKHOLDERS_ EQUITY - Reclassi
STOCKHOLDERS’ EQUITY - Reclassification out of other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Revenue | $ (1,555.8) | $ (1,632) |
Selling, general and administrative expense | (159.6) | (147.6) |
Other income (expense), net | 40.8 | 35.6 |
Income (loss) before income taxes | (5.8) | 456.6 |
Provision for income taxes | 28.5 | 24.5 |
Net income (loss) | (53.7) | 371.9 |
Amount Reclassified out of Accumulated Other Comprehensive Loss | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Income (loss) before income taxes | (3.5) | (7) |
Provision for income taxes | (0.4) | (2.1) |
Net income (loss) | (3.1) | (4.9) |
Amount Reclassified out of Accumulated Other Comprehensive Loss | Defined Pension and Other Post-Retirement Benefits | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Amortization of prior service credit (cost) | (0.1) | (0.1) |
Amortization of net actuarial loss | (3.4) | (6.9) |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Revenue | 4.6 | 10.4 |
Cost of sales | (0.4) | 8.3 |
Selling, general and administrative expense | (0.1) | 0.1 |
Other income (expense), net | (4) | 4 |
Income (loss) before income taxes | (9.1) | 2 |
Provision for income taxes | (2.7) | (0.7) |
Net income (loss) | $ (6.4) | $ 2.7 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - TechnipFMC plc Incentive Award Plan - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares available for future grant (in shares) | 3.3 | |
Stock-based compensation expense for nonvested stock units | $ 9.9 | $ 3.4 |
IMPAIRMENT, RESTRUCTURING AND_3
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSES - Restructuring, settlement and impairment provisions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Total impairment, restructuring and other expenses | $ 1 | $ 25.5 |
Subsea | ||
Restructuring Cost and Reserve [Line Items] | ||
Total impairment, restructuring and other expenses | (3.4) | 19.7 |
Surface Technologies | ||
Restructuring Cost and Reserve [Line Items] | ||
Total impairment, restructuring and other expenses | 1.6 | 2.8 |
Corporate and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total impairment, restructuring and other expenses | $ 2.8 | $ 3 |
IMPAIRMENT, RESTRUCTURING AND_4
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSES - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring and Related Activities [Abstract] | |
Operating lease right-of-use assets | $ 18.8 |
Restructuring and other expenses | $ 6.7 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) - USD ($) $ in Millions | Jun. 25, 2019 | Sep. 30, 2019 | Mar. 31, 2022 |
Guarantor Obligations | |||
Litigation settlement, amount awarded to other party | $ 301.3 | ||
Litigation settlement, expense | $ 5.1 | ||
Estimated litigation liability | $ 70 | ||
Brazilian Authorities | |||
Guarantor Obligations | |||
Period anti-corruption program reports will be provided | 2 years | ||
Self reporting period under leniency agreement | 2 years | ||
U.S. Authorities | |||
Guarantor Obligations | |||
Period anti-corruption program reports will be provided | 3 years | ||
DOJ | |||
Guarantor Obligations | |||
Deferred Prosecution Agreement term | 3 years | ||
Indirect guarantee of indebtedness | |||
Guarantor Obligations | |||
Guarantor obligations, term of obligation (in years) | 5 years |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Guarantees of our consolidated subsidiaries (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Guarantor Obligations | ||
Maximum potential undiscounted payments | $ 1,278.6 | $ 1,246.4 |
Financial guarantees | ||
Guarantor Obligations | ||
Maximum potential undiscounted payments | 175.5 | 177.4 |
Performance guarantees | ||
Guarantor Obligations | ||
Maximum potential undiscounted payments | $ 1,103.1 | $ 1,069 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (491.40%) | 5.40% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of notional amounts of outstanding derivative positions (Details) - Mar. 31, 2022 € in Millions, ₨ in Millions, د.ك in Millions, £ in Millions, kr in Millions, Rp in Millions, RM in Millions, R$ in Millions, Br in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | EUR (€) | USD ($) | NOK (kr) | AUD ($) | SGD ($) | CAD ($) | IDR (Rp) | INR (₨) | BYR (Br) | MXN ($) | KWD (د.ك) | BRL (R$) | MYR (RM) | GBP (£) |
Foreign Exchange Forward | Euro | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | € 1,194.1 | $ 1,325.6 | ||||||||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 240 | kr 2,095.9 | ||||||||||||
Foreign Exchange Forward | Australian dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 192.8 | $ 257.7 | ||||||||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 81.9 | $ 110.9 | ||||||||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 16.2 | $ 20.3 | ||||||||||||
Foreign Exchange Forward | Indonesian rupiah | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 15.7 | Rp 226,122.8 | ||||||||||||
Foreign Exchange Forward | Indian rupee | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 9.1 | ₨ 690.3 | ||||||||||||
Foreign Exchange Forward | Russian ruble | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 0 | Br 0.4 | ||||||||||||
Foreign Exchange Forward | Mexican peso | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 3.2 | $ 63.7 | ||||||||||||
Foreign Exchange Forward | Kuwaiti dinar | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 10.9 | د.ك 3.3 | ||||||||||||
Foreign Exchange Forward | Brazilian real | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 80.3 | R$ 380.5 | ||||||||||||
Foreign Exchange Forward | Malaysian ringgit | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 148.3 | RM 623.4 | ||||||||||||
Foreign Exchange Forward | British pound | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 244.9 | £ 186.6 | ||||||||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 1,496.5 | |||||||||||||
Derivative financial instruments – Embedded Derivatives | Euro | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | € 6.8 | 7.6 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | Norwegian krone | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 2.1 | kr 18.4 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | Brazilian real | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 21.6 | R$ 102.4 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | U.S. dollar | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 11.5 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Fair value of derivative instruments in balance sheets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivatives, Fair Value | |||
Derivative assets | $ 323.4 | $ 120.8 | |
Derivative liabilities | 377.9 | 176.5 | |
Foreign exchange contracts | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Foreign exchange contracts | (19.8) | $ (20.2) | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Derivative assets | 294.2 | 116.9 | |
Derivative liabilities | 350.2 | 155 | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 150.5 | 106.4 | |
Derivative liabilities | 181.4 | 139.5 | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Long-term - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 143.7 | 10.5 | |
Derivative liabilities | 168.8 | 15.5 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Derivative assets | 29.2 | 3.9 | |
Derivative liabilities | 27.7 | 21.5 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 28 | 3.9 | |
Derivative liabilities | 27.7 | 21.5 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Long-term - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 1.2 | 0 | |
Derivative liabilities | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Accumulated other comprehensive gains (losses) on forecasted cash flow hedges | $ 3,466.3 | $ 3,402.7 |
Cash flow hedge gain (loss) expected to be reclassified within 12 months | $ (8) | |
Hedges maturity year | 2024 | |
Hedging | ||
Derivative [Line Items] | ||
Accumulated other comprehensive gains (losses) on forecasted cash flow hedges | $ (27.3) | $ (18.7) |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Total revenue | $ 1,555.8 | $ 1,632 |
Selling, general and administrative expense | (159.6) | (147.6) |
Other income, net | 40.8 | 35.6 |
Foreign exchange contracts | Revenue | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Gain (loss) recognized in income on derivatives not designated as hedging instruments | (0.1) | 0.2 |
Total | (4) | (9.2) |
Foreign exchange contracts | Cost of sales | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Gain (loss) recognized in income on derivatives not designated as hedging instruments | (0.4) | 0.5 |
Total | (2.1) | 7.6 |
Foreign exchange contracts | Selling, general and administrative expense | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Gain (loss) recognized in income on derivatives not designated as hedging instruments | 0 | 0 |
Total | 0 | 1 |
Foreign exchange contracts | Other income (expense), net | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Gain (loss) recognized in income on derivatives not designated as hedging instruments | 29.5 | (11.4) |
Total | 9.7 | (8) |
Foreign exchange contracts | Cash Flow Hedging | Revenue | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Amounts excluded from effectiveness testing | 0.7 | 1 |
Total cash flow hedge gain (loss) recognized in income | (3.9) | (9.4) |
Foreign exchange contracts | Cash Flow Hedging | Cost of sales | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Amounts excluded from effectiveness testing | (1.3) | (1.2) |
Total cash flow hedge gain (loss) recognized in income | (1.7) | 7.1 |
Foreign exchange contracts | Cash Flow Hedging | Selling, general and administrative expense | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Amounts excluded from effectiveness testing | 0.1 | 0.9 |
Total cash flow hedge gain (loss) recognized in income | 0 | 1 |
Foreign exchange contracts | Cash Flow Hedging | Other income (expense), net | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Amounts excluded from effectiveness testing | (15.8) | (0.6) |
Total cash flow hedge gain (loss) recognized in income | (19.8) | 3.4 |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Total revenue | (4.6) | (10.4) |
Cost of sales | (0.4) | 8.3 |
Selling, general and administrative expense | (0.1) | 0.1 |
Other income, net | (4) | 4 |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | Revenue | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Total revenue | (4.6) | (10.4) |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | Cost of sales | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Cost of sales | (0.4) | 8.3 |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | Selling, general and administrative expense | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Selling, general and administrative expense | (0.1) | 0.1 |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Loss | Hedging | Other income (expense), net | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Other income, net | $ (4) | $ 4 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Gross Amount Recognized | $ 323.4 | $ 120.8 |
Gross Amounts Not Offset, Permitted Under Master Netting Agreements | (162.9) | (78.6) |
Net Amount | 160.5 | 42.2 |
Derivative liabilities | ||
Gross Amount Recognized | 377.9 | 176.5 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (162.9) | (78.6) |
Net Amount | $ 215 | $ 97.9 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and liabilities measured on a recurring basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets, Fair Value Disclosure [Abstract] | ||
Equity method investment | $ 292.2 | $ 292.4 |
Equity securities | 49.1 | 317.3 |
Foreign exchange contracts | 160.5 | 42.2 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 215 | 97.9 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity method investment | 49.1 | 317.3 |
Equity securities | 23.2 | 25 |
Held-to-maturity debt securities | 23.3 | 24 |
Assets held for sale | 5 | 5 |
Total assets | 426.5 | 494.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 377.9 | 176.5 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 323.4 | 120.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 377.9 | 176.5 |
Fair Value, Measurements, Recurring | Nonqualified Plan | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market fund | 2.2 | 2.4 |
Stable value fund | 0.3 | 0.3 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity method investment | 49.1 | 317.3 |
Equity securities | 23.2 | 25 |
Held-to-maturity debt securities | 0 | 0 |
Assets held for sale | 0 | 0 |
Total assets | 72.3 | 342.3 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Nonqualified Plan | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market fund | 0 | 0 |
Stable value fund | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity method investment | 0 | 0 |
Equity securities | 0 | 0 |
Held-to-maturity debt securities | 23.3 | 24 |
Assets held for sale | 0 | 0 |
Total assets | 348.9 | 147.2 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 377.9 | 176.5 |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 323.4 | 120.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 377.9 | 176.5 |
Fair Value, Measurements, Recurring | Level 2 | Nonqualified Plan | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market fund | 2.2 | 2.4 |
Stable value fund | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity method investment | 0 | 0 |
Equity securities | 0 | 0 |
Held-to-maturity debt securities | 0 | 0 |
Assets held for sale | 5 | 5 |
Total assets | 5 | 5 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Nonqualified Plan | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market fund | 0 | 0 |
Stable value fund | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Debt, fair value | $ 1,643.5 | $ 1,706.1 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets impairment | $ 1.1 | $ 18.8 |
Property, Plant and Equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets impairment | 18.8 | |
Property, Plant and Equipment | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-lived assets, fair value | $ 31.6 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Millions | Apr. 20, 2022 | Jan. 29, 2021 |
Senior Notes | 6.50% Senior notes due 2026 | ||
Subsequent Event [Line Items] | ||
Interest rate, stated percentage (in percent) | 6.50% | |
Subsequent Event | Senior Notes | 6.50% Senior notes due 2026 | ||
Subsequent Event [Line Items] | ||
Interest rate, stated percentage (in percent) | 6.50% | |
Subsequent Event | Tender Offer | ||
Subsequent Event [Line Items] | ||
Tender purchased for cash | $ 320 |