Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37983 | |
Entity Registrant Name | TechnipFMC plc | |
Entity Incorporation, State or Country Code | X0 | |
Entity Tax Identification Number | 98-1283037 | |
Entity Address, Address Line One | One Subsea Lane | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 77044 | |
Country Region | 1 | |
City Area Code | 281 | |
Local Phone Number | 591-4000 | |
Title of 12(b) Security | Ordinary shares, $1.00 par value per share | |
Trading Symbol | FTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 430,973,995 | |
Entity Central Index Key | 0001681459 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Lease revenue | $ 62.3 | $ 54.2 |
Total revenue | 2,042 | 1,717.4 |
Costs and expenses | ||
Cost of lease revenue | 38.3 | 39.8 |
Selling, general and administrative expense | 159.8 | 153.9 |
Research and development expense | 17.6 | 15.4 |
Restructuring, impairment and other charges | 5 | 0.6 |
Total costs and expenses | 1,883 | 1,666.4 |
Other income (expense), net | (12.3) | (1.3) |
Gain on disposal of Measurement Solutions business (Note 3) | 75.2 | 0 |
Income from equity affiliates (Note 10) | 1.4 | 14.2 |
Income before net interest expense and income taxes | 223.3 | 63.9 |
Interest income | 13.7 | 8.3 |
Interest expense | (26.4) | (27) |
Income before income taxes | 210.6 | 45.2 |
Provision for income taxes (Note 16) | 49.7 | 37.4 |
Net income | 160.9 | 7.8 |
Net income attributable to non-controlling interests | (3.8) | (7.4) |
Net income attributable to TechnipFMC plc | $ 157.1 | $ 0.4 |
Earnings per share attributable to TechnipFMC plc | ||
Basic (usd per share) | $ 0.36 | $ 0 |
Diluted (usd per share) | $ 0.35 | $ 0 |
Weighted average shares outstanding (Note 6) | ||
Basic (in shares) | 433.6 | 442.1 |
Diluted (in shares) | 446.3 | 455 |
Service revenue | ||
Revenue | ||
Revenue | $ 1,165.8 | $ 868.1 |
Costs and expenses | ||
Cost of product and service revenue | 1,019.1 | 802 |
Products | ||
Revenue | ||
Revenue | 813.9 | 795.1 |
Costs and expenses | ||
Cost of product and service revenue | $ 643.2 | $ 654.7 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to TechnipFMC plc | $ 157.1 | $ 0.4 | |
Net income attributable to non-controlling interests | (3.8) | (7.4) | |
Net income attributable to TechnipFMC plc, including non-controlling interests | 160.9 | 7.8 | |
Foreign currency translation adjustments | |||
Net unrealized gains (losses) arising during the period | (62.7) | 15.9 | |
Reclassification adjustment for net losses (gains) included in net income | 10.5 | (0.1) | |
Foreign currency translation adjustments | [1] | (52.2) | 15.8 |
Net losses on hedging instruments | |||
Net losses arising during the period | (34.4) | (6.1) | |
Reclassification adjustment for net (gains) losses included in net income | (3.1) | 1.6 | |
Net losses on hedging instruments | [2] | (37.5) | (4.5) |
Pension and other post-retirement benefits | |||
Net gains (losses) arising during the period | 4.1 | (2) | |
Reclassification adjustment for amortization of prior service cost included in net income | 0.1 | 0.1 | |
Reclassification adjustment for amortization of net actuarial loss included in net income | 3.1 | 2.2 | |
Reclassification adjustment for net gain included in net income | (2.3) | 0 | |
Net pension and other post-retirement benefits | [3] | 5 | 0.3 |
Other comprehensive income (loss) | (84.7) | 11.6 | |
Comprehensive income | 76.2 | 19.4 | |
Comprehensive (income) attributable to non-controlling interest | (3.9) | (5.4) | |
Comprehensive income attributable to TechnipFMC plc | $ 72.3 | $ 14 | |
[1] Net of income tax of nil for the three months ended March 31, 2024 and 2023. Net of income tax benefit (expense) of $6.6 million and $(4.6) million for the three months ended March 31, 2024 and 2023, respectively. Net of income tax benefit (expense) of $1.0 million and $(1.0) million for the three months ended March 31, 2024 and 2023, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax (expense) benefit | $ 0 | $ 0 |
Net income tax benefit (expense) | 6.6 | (4.6) |
Net income tax benefit (expense) | $ 1 | $ (1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 696.8 | $ 951.7 |
Trade receivables, net of allowances of $33.2 in 2024 and $34.4 in 2023 | 1,076.8 | 1,138.1 |
Contract assets, net of allowances of $1.3 in 2024 and $1.4 in 2023 | 1,062.7 | 1,010.1 |
Inventories, net (Note 8) | 1,162.4 | 1,100.3 |
Derivative financial instruments (Note 17) | 119.3 | 183.4 |
Income taxes receivable | 143.1 | 156.2 |
Advances paid to suppliers | 77.6 | 89.5 |
Measurements Solutions business classified as assets held for sale (Note 3) | 0 | 152.1 |
Other current assets (Note 9) | 431.7 | 414 |
Total current assets | 4,770.4 | 5,195.4 |
Investments in equity affiliates (Note 10) | 275.3 | 274.4 |
Property, plant and equipment, net of accumulated depreciation of $2,562.5 in 2024 and $2,496.5 in 2023 | 2,213.3 | 2,270.9 |
Operating lease right-of-use assets | 724.9 | 739.6 |
Finance lease right-of-use assets | 100.2 | 91.6 |
Intangible assets, net of accumulated amortization of $744.8 in 2024 and $725.3 in 2023 | 579.9 | 601.6 |
Deferred income taxes | 135.9 | 164.8 |
Derivative financial instruments (Note 17) | 18.5 | 30.4 |
Other assets | 270.3 | 287.9 |
Total assets | 9,088.7 | 9,656.6 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt (Note 12) | 136.6 | 153.8 |
Operating lease liabilities | 132.8 | 136.5 |
Finance lease liabilities | 65 | 9.9 |
Accounts payable, trade | 1,361 | 1,355.8 |
Contract liabilities | 1,331.6 | 1,485.8 |
Accrued payroll | 193.6 | 187.8 |
Derivative financial instruments (Note 17) | 155.3 | 179.9 |
Income taxes payable | 163.2 | 146.8 |
Measurements Solutions business classified as liabilities held for sale (Note 3) | 0 | 64.3 |
Other current liabilities (Note 9) | 589.8 | 748 |
Total current liabilities | 4,128.9 | 4,468.6 |
Long-term debt, less current portion (Note 12) | 887.2 | 913.5 |
Operating lease liabilities, less current portion | 654.9 | 667.1 |
Financing lease liabilities, less current portion | 43.8 | 88.4 |
Deferred income taxes | 76.6 | 92.2 |
Accrued pension and other post-retirement benefits, less current portion | 82.4 | 84.4 |
Derivative financial instruments (Note 17) | 44.4 | 24.8 |
Other liabilities | 125.3 | 145.5 |
Total liabilities | 6,043.5 | 6,484.5 |
Commitments and contingent liabilities (Note 15) | ||
Stockholders’ equity (Note 13) | ||
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2024 and 2023; 430.9 shares and 432.9 shares issued and outstanding in 2024 and 2023, respectively | 430.9 | 432.9 |
Capital in excess of par value of ordinary shares | 8,774.3 | 8,938.9 |
Accumulated deficit | (4,872.5) | (4,993.1) |
Accumulated other comprehensive loss | (1,326.8) | (1,242) |
Total TechnipFMC plc stockholders’ equity | 3,005.9 | 3,136.7 |
Non-controlling interests | 39.3 | 35.4 |
Total equity | 3,045.2 | 3,172.1 |
Total liabilities and equity | $ 9,088.7 | $ 9,656.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 33.2 | $ 34.4 |
Allowance for contract assets | 1.3 | 1.4 |
Property, plant and equipment, accumulated depreciation | 2,562.5 | 2,496.5 |
Intangible assets, accumulated amortization | $ 744.8 | $ 725.3 |
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) | 430,900,000 | 432,900,000 |
Ordinary shares, shares outstanding (in shares) | 430,900,000 | 432,900,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash required by operating activities | ||
Net income | $ 160.9 | $ 7.8 |
Adjustments to reconcile income to cash required by operating activities | ||
Depreciation and amortization | 99.5 | 93 |
Income from equity affiliates, net of dividends received | (1.4) | (14.2) |
Gain on disposal of Measurement Solutions business | (75.2) | 0 |
Other non-cash items, net | 32.5 | 18 |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Trade receivables, net and Contract assets, net | (19.5) | (392.1) |
Inventories, net | (76.2) | (94.7) |
Accounts payable, trade | 27.4 | 123.3 |
Contract liabilities | (134) | 14.3 |
Income taxes payable, net | 10.9 | 12.8 |
Other current assets and liabilities, net | (199.6) | (148.4) |
Other non-current assets and liabilities, net | 48 | (6) |
Cash required by operating activities | (126.7) | (386.2) |
Cash provided (required) by investing activities | ||
Capital expenditures | (52) | (57.3) |
Proceeds from sale of Measurement Solutions business | 186.1 | 0 |
Other investing activities | 2.2 | 4.5 |
Cash provided (required) by investing activities | 136.3 | (52.8) |
Cash required by financing activities | ||
Net decrease in short-term debt | (27.4) | (9.2) |
Share repurchases | (150.1) | (50) |
Dividends paid | (21.7) | 0 |
Payments related to taxes withheld on share-based compensation | (49.7) | (14.6) |
Other financing activities | (7.3) | (13.7) |
Cash required by financing activities | (256.2) | (87.5) |
Effect of changes in foreign exchange rates on cash and cash equivalents | (8.3) | (8.3) |
Change in cash and cash equivalents | (254.9) | (534.8) |
Cash and cash equivalents, beginning of period | 951.7 | 1,057.1 |
Cash and cash equivalents, end of period | $ 696.8 | $ 522.3 |
CONDENSED CONSLOIDATED STATEMEN
CONDENSED CONSLOIDATED 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, 2022 | $ 3,276.7 | $ 442.2 | $ 9,109.7 | $ (5,010) | $ (1,301.7) | $ 36.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7.8 | 0.4 | 7.4 | |||
Other comprehensive income (loss) | 11.6 | 13.6 | (2) | |||
Issuance of ordinary shares, net of shares withheld for tax | (14.6) | 2.7 | (17.3) | |||
Share-based compensation | 11.1 | 11.1 | ||||
Shares repurchased and cancelled | (50) | (3.3) | (46.7) | |||
Other | 0.1 | 0.1 | ||||
Ending balance at Mar. 31, 2023 | 3,242.7 | 441.6 | 9,056.8 | (5,009.5) | (1,288.1) | 41.9 |
Beginning balance at Dec. 31, 2023 | 3,172.1 | 432.9 | 8,938.9 | (4,993.1) | (1,242) | 35.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 160.9 | 157.1 | 3.8 | |||
Other comprehensive income (loss) | (84.7) | (84.8) | 0.1 | |||
Issuance of ordinary shares, net of shares withheld for tax | (49.7) | 4.3 | (54) | |||
Share-based compensation | 18.5 | 18.5 | ||||
Shares repurchased and cancelled | (150.1) | (6.3) | (129) | (14.8) | ||
Dividends declared and paid | (21.7) | (21.7) | ||||
Other | (0.1) | (0.1) | ||||
Ending balance at Mar. 31, 2024 | $ 3,045.2 | $ 430.9 | $ 8,774.3 | $ (4,872.5) | $ (1,326.8) | $ 39.3 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 condensed consolidated financial statements may not be representative of the results that may be expected for the year ending December 31, 2024. Certain prior-year amounts have been reclassified to conform to the current year’s presentation. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards under GAAP In November 2023, the Financial Accounting Standards Board (“the FASB”) issued ASU 2023-07, “Improvements to Reportable Segment Disclosures,” which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The new guidance is effective for fiscal years beginning after December 31, 2024, and for interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this standard on the related disclosures. Recently Issued Accounting Standards under GAAP In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. We are currently evaluating the impact of this standard on the related disclosures. On March 6, 2024, the SEC issued their final rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors” designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The final rule includes disclosures relating to climate-related risks and risk management as well as the board and management’s governance of such risks. In addition, the rule includes requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. On April 4, 2024, the SEC stayed its climate disclosure rule to “facilitate the orderly judicial resolution” of pending legal challenges. We are currently evaluating the impact of this rule on our disclosures. 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. |
DISPOSAL OF MEASUREMENT SOLUTIO
DISPOSAL OF MEASUREMENT SOLUTIONS BUSINESS AND OTHER TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSAL OF MEASUREMENT SOLUTIONS BUSINESS AND OTHER TRANSACTIONS | DISPOSAL OF MEASUREMENT SOLUTIONS BUSINESS AND OTHER TRANSACTIONS Disposal of Measurement Solutions business In November 2023, TechnipFMC announced an agreement to sell the Company’s Measurement Solutions business (the “MSB”) for $205 million in cash, subject to customary adjustments at the closing of the transaction. As part of the Surface Technologies segment, MSB encompasses terminal management solutions and metering products and systems and includes engineering and manufacturing locations in North America and Europe. We recorded transaction costs associated with the sale of $5.2 million during each of the three months ended March 31, 2024 and December 31, 2023. These transaction costs are included within impairment, restructuring and other expenses in our condensed consolidated statement of income. On March 11, 2024, we completed the sale of equity interests and assets of MSB for cash proceeds of $186.1 million and recognized a gain on disposal of $75.2 million. The purchase consideration was adjusted for various working capital balances and assumed liabilities as of the transaction closing date. FMC Technologies (UK) Pension Plan Buy-In In February 2024, one of the U.K. pension plans entered into a buy-in contract for its pensioners. Under the buy-in contract terms, the responsibility to pay pension benefits still rests with the plan and the obligation is still recorded by the Company. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
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 the exploration and production of 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, 2024 and 2023: Reportable segments Three Months Ended March 31, 2024 March 31, 2023 (In millions) Subsea Surface Technologies Subsea Surface Technologies Latin America $ 676.8 $ 25.3 $ 440.4 $ 27.2 Europe and Central Asia 358.9 36.7 378.5 44.2 North America 317.0 125.1 249.9 146.1 Africa 295.7 12.8 210.5 9.7 Asia Pacific 91.0 23.2 71.9 17.9 Middle East (4.6) 84.1 36.4 84.7 Total revenue $ 1,734.8 $ 307.2 $ 1,387.6 $ 329.8 The following tables present total revenue by contract type for each reportable segment for the three months ended March 31, 2024 and 2023: Reportable segments Three Months Ended March 31, 2024 March 31, 2023 (In millions) Subsea Surface Technologies Subsea Surface Technologies Services $ 1,117.5 $ 48.3 $ 815.3 $ 52.8 Products 597.6 216.3 564.8 230.3 Lease 19.7 42.6 7.5 46.7 Total revenue $ 1,734.8 $ 307.2 $ 1,387.6 $ 329.8 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, 2024 and December 31, 2023: (In millions) March 31, December 31, Contract assets $ 1,062.7 $ 1,010.1 Contract liabilities (1,331.6) (1,485.8) Net contract liabilities $ (268.9) $ (475.7) 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 subsequ ent revenue we recognize increases the contract asset balance. Revenue recognized for the three months ended March 31, 2024 and 2023 that was included in the contract liabilities balance as of December 31, 2023 and 2022 was $479.6 million and $347.7 million, respectively. In addition, net revenue recognized from our performance obligations satisfied or partially satisfied in previous periods had a favorable impact of $0.6 million an d unfavorable impact of $(2.6) million for the three months ended March 31, 2024 and 2023, respectively. One project was materially and favorably impacted for the three months ended March 31, 2024 by $23.5 million as result of improved performance in the delivery and was offset by individually immaterial net negative impacts of $22.9 million. For the three months ended March 31, 2023, there were no projects with individually material impacts. Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations Remaining unsatisfied performance obligations (“RUPO” or “order backlog”) represent the transaction price for products and services for which we have a material right, but work has not been performed. The 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, 2024, the aggregate amount of the transaction price allocated to order backlog was $13.5 billion. TechnipFMC expects to recognize revenue on approximately 35.1% of the order backlog through 2024 and 64.9% thereafter. The following table details the order backlog for each business segment as of March 31, 2024: (In millions) 2024 2025 Thereafter Subsea $ 4,315.0 $ 3,876.0 $ 4,264.5 Surface Technologies 422.4 219.2 395.4 Total order backlog $ 4,737.4 $ 4,095.2 $ 4,659.9 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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 and allocates resources. 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 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 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. The decline in total assets of $567.9 million is mainly attributable to the sale of MSB within the Surface Technologies segment of $152.1 million of assets held for sale. Other changes are mainly related to decline in cash of $254.9 million within the corporate assets and the remaining $160.9 million changes in working capital, and foreign exchange within both the Subsea and Surface Technologies segments. Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in segment operating profit. The following items have been excluded in computing segment operating profit: corporate staff expense, foreign exchange gains (losses), net interest income (expense) associated with corporate debt facilities and income taxes. Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (In millions) 2024 2023 Segment revenue Subsea $ 1,734.8 $ 1,387.6 Surface Technologies 307.2 329.8 Total segment revenue $ 2,042.0 $ 1,717.4 Segment operating profit Subsea $ 156.6 $ 66.8 Surface Technologies (c) 103.4 22.4 Total segment operating profit $ 260.0 $ 89.2 Corporate items Corporate expens e (a) (32.2) (27.4) Net interest expense (12.7) (18.7) Foreign exchange gains (losses) (4.5) 2.1 Total corporate items (49.4) (44.0) Income before income taxes (b) $ 210.6 $ 45.2 (a) Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits. (b) Includes amounts attributable to non-controlling interests. (c) Includes gain on disposal of MSB, see Note 3 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net income attributable to TechnipFMC plc $ 157.1 $ 0.4 Weighted average number of shares outstanding 433.6 442.1 Dilutive effect of restricted stock units 5.0 7.0 Dilutive effect of stock options 0.1 — Dilutive effect of performance shares 7.6 5.9 Total shares and dilutive securities 446.3 455.0 Basic and diluted earnings per share attributable to TechnipFMC plc: Earnings per share attributable to TechnipFMC plc Basic $ 0.36 $ 0.00 Diluted $ 0.35 $ 0.00 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) 2024 2023 Share option awards 0.5 1.4 Restricted share units — 0.7 Performance shares 0.4 0.5 Total 0.9 2.6 |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES We manage our receivables portfolios using published default risk as a key credit quality indicator for our loans and receivables. Our loans receivable and other are 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. March 31, 2024 December 31, 2023 (In millions) Credit rating Year of origination Balance Credit rating Year of origination Balance Loans receivables and other Moody’s rating A3 - Ba2 2020-2023 $ 139.6 Moody’s rating Aa3 -Ba2 2020-2023 $ 138.1 Debt securities at amortized cost — Moody’s rating B3 2021 1.4 Total financial assets $ 139.6 $ 139.5 Credit Losses For contract assets and trade receivables, 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 loans receivable and other and held-to-maturity debt securities at amortized cost, we evaluate whether these securities are considered to have low credit risk at the reporting date using available, reasonable and supportable information. The table below shows the roll forward of allowance for credit losses as of March 31, 2024 and 2023, respectively. Balance as of March 31, 2024 (In millions) Trade receivables Contract assets Loans receivable and other Allowance for credit losses at December 31, 2023 $ 34.4 $ 1.4 $ 2.3 Current period provision (release) for expected credit losses (1.2) (0.1) 7.3 Allowance for credit losses at March 31, 2024 $ 33.2 $ 1.3 $ 9.6 Balance as of March 31, 2023 (In millions) Trade receivables Contract assets Loans receivable and other Allowance for credit losses at December 31, 2022 $ 34.1 $ 1.1 $ 0.5 Current period provision (release) for expected credit losses 0.5 0.5 — Recoveries (0.6) — — Allowance for credit losses at March 31, 2023 $ 34.0 $ 1.6 $ 0.5 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, 2024 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 426.9 $ 401.3 Work in process 174.9 148.2 Finished goods 560.6 550.8 Inventories, net $ 1,162.4 $ 1,100.3 |
OTHER CURRENT ASSETS & OTHER CU
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 184.8 $ 196.0 Prepaid expenses 115.7 83.5 Withholding tax and other receivables 88.9 96.8 Current financial assets at amortized cost 11.7 9.1 Held-to-maturity investments — 1.3 Other 30.6 27.3 Total other current assets $ 431.7 $ 414.0 Other current liabilities consisted of the following: (In millions) March 31, December 31, Legal settlement liability (a) $ 111.5 $ 171.1 Social security liability 109.5 81.9 Value-added tax and other taxes payable 63.2 78.5 Warranty accruals and project contingencies 57.7 60.9 Legal provisions 54.4 57.7 Compensation accrual 33.8 136.2 Provisions 9.9 16.2 Current portion of accrued pension and other post-retirement benefits 4.6 4.4 Other accrued liabilities 145.2 141.1 Total other current liabilities $ 589.8 $ 748.0 (a) See N ote 1 5 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS Our income from equity affiliates is included in our Subsea segment. During the three months ended March 31, 2024 and 2023, our income from equity affiliates was $1.4 million and $14.2 million, respectively. Our major equity method investment is as follows: Dofcon Brasil AS is an affiliated company in the form of a joint venture between TechnipFMC and DOF Subsea (“DOF”) and was founded in 2006. The joint venture is composed of three legal entities: Dofcon Brasil AS, Techdof Brasil AS and Dofcon Navegacao Ltda. Dofcon Brasil AS is the joint venture holding company and is owned 50% by DOF and 50% by TechnipFMC. Dofcon Brasil AS owns 100% of both Dofcon Navegacao Ltda and Techdof Brasil AS. All joint venture entities are collectively referred to as “Dofcon.” Dofcon provides Pipe-Laying Support Vessels for work in oil and natural gas fields offshore Brazil. Dofcon is considered a variable interest entity (“VIE”) because it does not have sufficient equity to finance its activities without additional subordinated financial support from other parties. We are not the primary beneficiary of the VIE. As such, we have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment. In June 2023, Dofcon Brasil AS declar ed a $170.0 million dividend to its joint venture partners. The dividend receivable was recorded within other current assets on our consolidated balance sheets until December 2023 when t he joint venture partners agreed and signed the agreement to convert their outstanding dividend receivable into a long-term loan receivable from Dofcon. As a result of this conversion, we converted our 50% share of this dividend receivable into a long-term loan receivable that has a due date of June 26, 2028 and is included in other assets on our condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 . Dofcon Navegacao Ltda and Techdof Brasil AS have debts related to loans on their vessels. TechnipFMC and DOF provide guarantees for the debts and our share of the guarant ees was $367.0 million as of March 31, 2024. TechDof Brasil AS owns and operates the Skandi Buzios vessel. During June 2023, a fire occurred onboard the vessel alongside Porto do Açu in Brazil. Repairs on the vessel started during the fourth quarter of 2023 and are progressing according to plan. The vessel is scheduled to be back in operation during the second half of 2024. We did not record an impairment on the carrying value of our investment as we did not note any impairment indicators from the incident that were other than temporary. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
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, were not material as of and for the three months ended March 31, 2024 and the comparable periods of the prior year. Related parties are defined as entities related to our directors, officers, and main shareholders as well as the partners of our consolidated joint ventures. Loan receivables as of March 31, 2024 and December 31, 2023 include $85.0 million to Dofcon, for which interest income of $1.8 million has been recorded during the three months ended March 31, 2024 and nil for the three months ended March 31, 2023. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Overview Long-term debt consisted of the following: (In millions) March 31, December 31, 5.75% 2020 Private Placement Notes due 2025 $ 216.2 $ 221.0 6.50% Senior notes due 2026 202.9 202.9 4.00% 2012 Private Placement Notes due 2027 81.1 82.9 4.00% 2012 Private Placement Notes due 2032 108.1 110.5 3.75% 2013 Private Placement Notes due 2033 108.1 110.5 Bank borrowings and other 314.9 347.6 Unamortized debt issuance costs and discounts (7.5) (8.1) Total debt 1,023.8 1,067.3 Less: current borrowings 136.6 153.8 Long-term debt $ 887.2 $ 913.5 Credit Facilities and Debt Revolving Credit Facility - On February 16, 2021, we entered into a credit agreement, which provided for a $1.0 billion three-year senior secured multi-currency revolving credit facility, including a $450.0 million letter of credit sub-facility (the “Revolving Credit Facility”). 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 sheets. The deferred debt issuance costs are amortized to interest expense over the term of the Revolving Credit Facility. On April 24, 2023, we entered into a fifth amendment (the “Amendment No. 5”) to the Revolving Credit Facility (as amended, the “Credit Agreement”) , which increased the commitments available to the Company to $1.25 billion and extended the term to five years from the date of the Amendment No. 5. The Credit Agreement also provides for a $250.0 million letter of credit sub-facility. We incurred $16.7 million of debt issuance costs in connection with the Amendment No. 5. These debt issuance costs are deferred and are included in other assets in our condensed consolidated balance sheets. The deferred debt issuance costs are amortized to interest expense over the term of the Credit Agreement. Availability of borrowings under the Credit Agreement is reduced by the outstanding letters of credit issued against the facility. As of March 31, 2024, there were no letters of credit outstanding, and our availability under the Credit Agreement was $1,250.0 million. Borrowings under the Credit Agreement 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 Secured Overnight Financing Rate (“Adjusted Term SOFR”); • British pound-denominated loans bear interest on an adjusted rate linked to the British pound interbank offered rate; and • Euro-denominated loans bear interest on an adjusted rate linked to the Euro interbank offered rate. The applicable margin for borrowings under the Credit Agreement ranges from 2.50% to 3.50% for Term Benchmark (as defined in the Credit Agreement) loans and 1.50% to 2.50% for base rate loans, depending on a total leverage ratio. In case of upgrade to Baa3/BBB- by two out of three rating agencies, the rates for Term Benchmark loans and for base rate loans would decrease by 100 basis points. The Credit Agreement is subject to customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants. Letter of Credit Facility - On April 24, 2023, the Company entered into a new $500 million five-year senior secured performance letters of credit facility (the “Performance LC Credit Agreement”). The commitments under the Performance LC Credit Agreement may be increased to $1.0 billion, subject to the satisfaction of certain customary conditions precedent. The Performance LC Credit Agreement permits the Company and its subsidiaries to have access to performance letters of credit denominated in a variety of currencies to support the contracting activities with counterparties that require or request a performance or similar guarantee. It contains substantially the same customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants as the Credit Agreement and benefits from the same guarantees and security as the Credit Agreement on a pari passu basis. Upon the occurrence of an Investment Grade Debt Rating (as defined in the Credit Agreement) by any two of three Rating Agencies (as defined in the Credit Agreement) and the satisfaction of certain other conditions precedent, the collateral securing the Credit Agreement and the Performance LC Credit Agreement and the guarantees provided by certain subsidiaries of the Company shall be automatically released and certain negative covenants will no longer apply to the Company. 2021 Notes - On January 29, 2021, we issued $1.0 billion of 6.50% senior notes due 2026 (the “2021 Notes”). 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 sheets. 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, 2024, TechnipFMC was 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, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY On July 26, 2023, the Company announced that its Board of Directors authorized the initiation of a quarterly cash dividend of $0.05 per share. The Company intends to pay dividends on a quarterly basis, and this dividend represents $0.20 per share on an annualized basis. The cash dividend paid during the three months ended March 31, 2024 was $21.7 million. As an English public limited company, we are required under U.K. law to have available “distributable reserves” to conduct share repurchases or pay dividends to shareholders. Distributable reserves are a statutory requirement and are not linked to a GAAP reported amount (e.g., retained earnings). The declaration and payment of dividends require the authorization of our Board of Directors, provided that such dividends on issued share capital may be paid only out of our “distributable reserves” on our statutory balance sheet. Therefore, we are not permitted to pay dividends out of share capital, which includes share premium. In July 2022, the Board of Directors authorized the repurchase of up to $400.0 million of our outstanding ordinary shares under our share repurchase program. On July 26, 2023, the Board of Directors authorized additional share repurchase of up to $400.0 million, and the Company’s total share repurchase authorization was increased to $800.0 million of our outstanding ordinary shares under our share repurchase program. Pursuant to this share repurchase program, we repurchased $150.1 million of ordinary shares during the three months ended March 31, 2024. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of $455.4 million of ordinary shares through March 31, 2024. All repurchased shares were immediately cancelled. Accumulated other comprehensive income (loss) for three months ended March 31, 2024 and 2023 consisted of the following: (In millions) Foreign Currency Hedging Defined Pension Accumulated Other Accumulated Other December 31, 2022 $ (1,177.7) $ (17.1) $ (106.9) $ (1,301.7) $ (9.8) Other comprehensive income (loss) before reclassifications, net of tax 17.9 (6.1) (2.0) 9.8 (2.0) Reclassification adjustment for net (gains) losses included in net income (loss), net of tax (0.1) 1.6 2.3 3.8 — Other comprehensive income (loss), net of tax 17.8 (4.5) 0.3 13.6 (2.0) March 31, 2023 $ (1,159.9) $ (21.6) $ (106.6) $ (1,288.1) $ (11.8) December 31, 2023 $ (1,120.5) $ 20.9 $ (142.4) $ (1,242.0) $ (6.0) Other comprehensive income (loss) before reclassifications, net of tax (62.8) (34.4) 4.1 (93.1) 0.1 Reclassification adjustment for net (gains) losses included in net income, net of tax 10.5 (3.1) 0.9 8.3 — Other comprehensive income (loss), net of tax (52.3) (37.5) 5.0 (84.8) 0.1 March 31, 2024 $ (1,172.8) $ (16.6) $ (137.4) $ (1,326.8) $ (5.9) Reclassifications out of accumulated other comprehensive income (loss) consisted of the following: Three Months Ended March 31, (In millions) 2024 2023 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Comprehensive Affected Line Item in the Condensed Consolidated Statements of Income Release of CTA loss (10.5) — Other income (expense), net $ (10.5) $ — Gains (losses) on hedging instruments Foreign exchange contracts $ 0.9 $ (1.7) Revenue 0.6 3.5 Cost of sales 2.8 (4.1) Other income (expense), net 4.3 (2.3) Income (loss) before income taxes 1.2 (0.7) Provision for income taxes $ 3.1 $ (1.6) Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) $ (0.1) $ (0.1) Other income (expense), net (a) Amortization of net actuarial loss (2.1) (3.2) Other income (expense), net (a) Reclassification adjustment for net gain included in net income 2.3 — Other income (expense), net (a) 0.1 (3.3) Income (loss) before income taxes 1.0 (1.0) Provision for income taxes $ (0.9) $ (2.3) Net income (loss) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
SUPPLIER FINANCE PROGRAM OBLIGA
SUPPLIER FINANCE PROGRAM OBLIGATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
SUPPLIER FINANCE PROGRAM OBLIGATIONS | SUPPLIER FINANCE PROGRAM OBLIGATIONS We facilitate a supply chain finance program (“SCF”) that is administered by a third-party financial institution, which allows qualifying suppliers to sell their receivables from the Company to the SCF bank. These participating suppliers negotiate their outstanding receivable(s) directly with the SCF bank. We are not a party to those agreements and the terms of our payment obligations are not impacted by a supplier’s participation in the SCF. We agree to pay the SCF bank based on the original invoice amounts and maturity dates as consistent with our other Accounts payables. All outstanding amounts related to suppliers participating in the SCF are recorded within Accounts payable, trade in our condensed consolidated balance sheets, and the associated payments are included in operating activities within our condensed consolidated statements of cash flows. As of March 31, 2024 and December 31, 2023, the amounts due to suppliers participating in the SCF were $135.3 million and $132.9 million, respectively. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 would have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows. Guarantees made by our consolidated subsidiaries consisted of the following: (In millions) March 31, December 31, Financial guarantees (a) $ 184.2 $ 231.9 Performance guarantees (b) 1,826.7 1,821.7 Maximum potential undiscounted payments $ 2,010.9 $ 2,053.6 (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 non-financial 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 condensed 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, including certain put or call options. 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 condensed consolidated financial position, results of operations or cash flows. The Company has resolved an anti-corruption investigation by French authorities (the Parquet National Financier (“PNF”)). On June 22, 2023, the Company, through its subsidiary Technip UK Limited, along with Technip Energies SAS, a subsidiary of Technip Energies NV, reached a resolution with the PNF of all outstanding matters, including its investigations into historical projects in Equatorial Guinea, Ghana, and Angola. The resolution took the form of a convention judiciaire d'interet public (“CJIP”), which does not involve any admission of liability or guilt. Under the terms of the CJIP, Technip UK and Technip Energies France will pay a public interest fine of €154.8 million and €54.1 million, respectively, for a total of €208.9 million. Under the companies’ separation agreements, TechnipFMC is responsible for €179.45 million to be paid in installments through July 2024, and Technip Energies is responsible for the remaining €29.45 million. During the three-months ended June 30, 2023, we recorded an incremental liability of $126.5 million. After making scheduled installment payments of €24.7 million and €51.6 million on July 13, 2023 and January 15, 2024, respectively, we have an outstanding balance of €103.2 million that is translated to $111.5 million and is recorded in other current liabilities in our condensed consolidated balance sheets as of March 31, 2024. TechnipFMC fully cooperated with the PNF and was not required to retain a monitor. The CJIP received final approval by the President of the Tribunal Judiciaire of Paris at a hearing on June 28, 2023. 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 as of March 31, 2024 and December 31, 2023, and that the ultimate resolution of such matters will not materially affect our condensed consolidated financial position, results of operations or cash flows. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our provision for income taxes for the three months ended March 31, 2024 and 2023 reflected effective tax rates of 23.6% and 82.7%, respectively. The change in the effective tax rate was largely due to the change in geographical profit mix year over year, tax adjustments related to the reassessment of prior year tax accruals and changes in valuation allowances on some of our deferred tax assets. 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, 2024 | |
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, 2024, we held the following material net positions: Net Notional Amount (In millions) USD Equivalent Euro 1,150.0 1,243.0 Norwegian krone 5,120.0 473.0 Brazilian real 2,194.0 439.0 Australian dollar 285.0 186.0 Singapore dollar 118.0 87.0 Malaysian ringgit 229.0 48.0 Czech koruna 383.0 16.0 Swedish krona 103.0 10.0 Canadian dollar 12.0 9.0 Indian rupee 607.0 7.0 Polish zloty 22.0 6.0 Indonesian rupiah (723,464.0) (46.0) British pound (264.0) (334.0) U.S. dollar (2,367.0) (2,367.0) Foreign exchange rate instruments embedded in purchase and sale contracts - The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or comply with government restrictions on the currency used to purchase goods in certain countries. As of March 31, 2024, our portfolio of these instruments included the following material net positions: Net Notional Amount (In millions) USD Equivalent Brazilian real 33.4 6.7 Norwegian krone 9.6 0.9 Euro (10.7) (11.5) U.S. dollar 4.4 4.4 Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. See Note 18 The following table presents the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheets: March 31, 2024 December 31, 2023 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 119.5 $ 139.9 $ 183.5 $ 167.9 Long-term - Derivative financial instruments 18.5 42.2 30.4 24.8 Total derivatives designated as hedging instruments 138.0 182.1 213.9 192.7 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments (0.2) 15.4 (0.1) 12.0 Long-term - Derivative financial instruments — 2.2 — — Total derivatives not designated as hedging instruments (0.2) 17.6 (0.1) 12.0 Total derivatives $ 137.8 $ 199.7 $ 213.8 $ 204.7 Cash flow hedges of forecasted transactions, net of tax, which qualify for hedge accounting, resulted in accumulated other comprehensive loss of $16.8 million and accumulated other comprehensive income of $19.5 million as of March 31, 2024 and December 31, 2023, respectively. We expect to transfer an approximate $4.8 million gain 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 2027. 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) 2024 2023 Foreign exchange contracts $ (39.8) $ (2.4) The following table represents the effect of cash flow hedge accounting in the condensed consolidated statements of income for the three months ended March 31, 2024 and 2023: (In millions) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Total amount of income (expense) presented in the condensed consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Other income (expense), net Revenue Cost of sales Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income (loss) $ 0.9 $ 0.6 $ 2.8 $ (1.7) $ 3.5 $ (4.1) Amounts excluded from effectiveness testing 7.0 4.9 (4.9) 1.7 (8.4) 40.1 Total cash flow hedge gain (loss) recognized in income 7.9 5.5 (2.1) — (4.9) 36.0 Gain (loss) recognized in income on derivatives not designated as hedging instruments 0.2 — (21.4) (0.1) 0.3 8.8 Total (a) $ 8.1 $ 5.5 $ (23.5) $ (0.1) $ (4.6) $ 44.8 (a) The total effect of cash flow hedge accounting on selling, general and administrative expense is not material for the three months ended March 31, 2024 and 2023. 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, 2024 and December 31, 2023, we had no collateralized derivative contracts. The following tables present both gross and net information of recognized derivative instruments: March 31, 2024 December 31, 2023 (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 $ 137.8 $ (91.9) $ 45.9 $ 213.8 $ (103.4) $ 110.4 Derivative liabilities $ 199.7 $ (91.9) $ 107.8 $ 204.7 $ (103.4) $ 101.3 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Equity securities $ 26.6 $ 26.6 $ — $ — $ 24.3 $ 24.3 $ — $ — Money market and stable value funds 2.3 — 1.9 — 2.1 — 1.7 — Derivative financial instruments Foreign exchange contracts 137.8 — 137.8 — 213.8 — 213.8 — Total assets $ 166.7 $ 26.6 $ 139.7 $ — $ 240.2 $ 24.3 $ 215.5 $ — Liabilities Derivative financial instruments Foreign exchange contracts 199.7 — 199.7 — 204.7 — 204.7 — Total liabilities $ 199.7 $ — $ 199.7 $ — $ 204.7 $ — $ 204.7 $ — 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. Money market and stable value funds - These funds 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. These funds include fixed income and other investments measured at fair value. 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. Held-to-maturity debt securities - These investments consist of government bonds and are stated at amortized cost, which approximates fair value. 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 17 Other fair value disclosures The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, 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 and senior note s was $670.9 million a nd $683.4 million as of March 31, 2024 and December 31, 2023, 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, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTSOn April 23, 2024, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on June 5, 2024 to shareholders of record as of the close of business on the New York Stock Exchange on May 21, 2024. The ex-dividend date is May 20, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income attributable to TechnipFMC plc | $ 157.1 | $ 0.4 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
David Light [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the three months ended March 31, 2024, certain of our directors or officers adopted Rule 10b5-1 trading arrangements (each, a “Rule 10b5-1 Plan”). Rule 10b5-1 Plans allow our directors or officers to transact in Company equity pursuant to a non-discretionary written plan adopted at a time when the director or officer is not in possession of material, nonpublic information and require a waiting period of at least 90 days prior to the first trade. Plans Name and Title Action Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Maximum Number of Ordinary Shares to be Sold Expiration Duration (in days) David Light Adoption 03/27/2024 X 5,928 The earlier of (i) the date when all securities under the plan are sold and (ii) March 26, 2025 364 Senior Vice President, Controller and Chief Accounting Officer (1) Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). |
Name | David Light |
Title | Senior Vice President, Controller and Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 03/27/2024 |
Arrangement Duration | 364 days |
Aggregate Available | 5,928 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. 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 condensed consolidated financial statements may not be representative of the results that may be expected for the year ending December 31, 2024. Certain prior-year amounts have been reclassified to conform to the current year’s presentation. |
Recently Adopted Accounting Standards under GAAP and Recently Issued Accounting Standards under GAAP | Recently Adopted Accounting Standards under GAAP In November 2023, the Financial Accounting Standards Board (“the FASB”) issued ASU 2023-07, “Improvements to Reportable Segment Disclosures,” which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The new guidance is effective for fiscal years beginning after December 31, 2024, and for interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this standard on the related disclosures. Recently Issued Accounting Standards under GAAP In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. We are currently evaluating the impact of this standard on the related disclosures. On March 6, 2024, the SEC issued their final rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors” designed to enhance public company disclosures related to the risks and impacts of climate-related matters. The final rule includes disclosures relating to climate-related risks and risk management as well as the board and management’s governance of such risks. In addition, the rule includes requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. On April 4, 2024, the SEC stayed its climate disclosure rule to “facilitate the orderly judicial resolution” of pending legal challenges. We are currently evaluating the impact of this rule on our disclosures. 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 (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023: Reportable segments Three Months Ended March 31, 2024 March 31, 2023 (In millions) Subsea Surface Technologies Subsea Surface Technologies Latin America $ 676.8 $ 25.3 $ 440.4 $ 27.2 Europe and Central Asia 358.9 36.7 378.5 44.2 North America 317.0 125.1 249.9 146.1 Africa 295.7 12.8 210.5 9.7 Asia Pacific 91.0 23.2 71.9 17.9 Middle East (4.6) 84.1 36.4 84.7 Total revenue $ 1,734.8 $ 307.2 $ 1,387.6 $ 329.8 The following tables present total revenue by contract type for each reportable segment for the three months ended March 31, 2024 and 2023: Reportable segments Three Months Ended March 31, 2024 March 31, 2023 (In millions) Subsea Surface Technologies Subsea Surface Technologies Services $ 1,117.5 $ 48.3 $ 815.3 $ 52.8 Products 597.6 216.3 564.8 230.3 Lease 19.7 42.6 7.5 46.7 Total revenue $ 1,734.8 $ 307.2 $ 1,387.6 $ 329.8 |
Schedule of Contract Balances | The following table provides information about net contract assets (liabilities) as of March 31, 2024 and December 31, 2023: (In millions) March 31, December 31, Contract assets $ 1,062.7 $ 1,010.1 Contract liabilities (1,331.6) (1,485.8) Net contract liabilities $ (268.9) $ (475.7) |
Schedule of Remaining Revenue Performance Obligations | The following table details the order backlog for each business segment as of March 31, 2024: (In millions) 2024 2025 Thereafter Subsea $ 4,315.0 $ 3,876.0 $ 4,264.5 Surface Technologies 422.4 219.2 395.4 Total order backlog $ 4,737.4 $ 4,095.2 $ 4,659.9 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Segment Revenue and Segment Operating Profit | Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (In millions) 2024 2023 Segment revenue Subsea $ 1,734.8 $ 1,387.6 Surface Technologies 307.2 329.8 Total segment revenue $ 2,042.0 $ 1,717.4 Segment operating profit Subsea $ 156.6 $ 66.8 Surface Technologies (c) 103.4 22.4 Total segment operating profit $ 260.0 $ 89.2 Corporate items Corporate expens e (a) (32.2) (27.4) Net interest expense (12.7) (18.7) Foreign exchange gains (losses) (4.5) 2.1 Total corporate items (49.4) (44.0) Income before income taxes (b) $ 210.6 $ 45.2 (a) Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits. (b) Includes amounts attributable to non-controlling interests. (c) Includes gain on disposal of MSB, see Note 3 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Number of Shares Used for the Basic and Diluted Earnings Per Share | A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net income attributable to TechnipFMC plc $ 157.1 $ 0.4 Weighted average number of shares outstanding 433.6 442.1 Dilutive effect of restricted stock units 5.0 7.0 Dilutive effect of stock options 0.1 — Dilutive effect of performance shares 7.6 5.9 Total shares and dilutive securities 446.3 455.0 Basic and diluted earnings per share attributable to TechnipFMC plc: Earnings per share attributable to TechnipFMC plc Basic $ 0.36 $ 0.00 Diluted $ 0.35 $ 0.00 |
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) 2024 2023 Share option awards 0.5 1.4 Restricted share units — 0.7 Performance shares 0.4 0.5 Total 0.9 2.6 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Financing Receivable Credit Quality Indicators | The table below summarizes the amortized cost basis of financial assets by years of origination and credit quality. March 31, 2024 December 31, 2023 (In millions) Credit rating Year of origination Balance Credit rating Year of origination Balance Loans receivables and other Moody’s rating A3 - Ba2 2020-2023 $ 139.6 Moody’s rating Aa3 -Ba2 2020-2023 $ 138.1 Debt securities at amortized cost — Moody’s rating B3 2021 1.4 Total financial assets $ 139.6 $ 139.5 |
Schedule of Financing Receivable, Allowance for Credit Loss | The table below shows the roll forward of allowance for credit losses as of March 31, 2024 and 2023, respectively. Balance as of March 31, 2024 (In millions) Trade receivables Contract assets Loans receivable and other Allowance for credit losses at December 31, 2023 $ 34.4 $ 1.4 $ 2.3 Current period provision (release) for expected credit losses (1.2) (0.1) 7.3 Allowance for credit losses at March 31, 2024 $ 33.2 $ 1.3 $ 9.6 Balance as of March 31, 2023 (In millions) Trade receivables Contract assets Loans receivable and other Allowance for credit losses at December 31, 2022 $ 34.1 $ 1.1 $ 0.5 Current period provision (release) for expected credit losses 0.5 0.5 — Recoveries (0.6) — — Allowance for credit losses at March 31, 2023 $ 34.0 $ 1.6 $ 0.5 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: (In millions) March 31, December 31, Raw materials $ 426.9 $ 401.3 Work in process 174.9 148.2 Finished goods 560.6 550.8 Inventories, net $ 1,162.4 $ 1,100.3 |
OTHER CURRENT ASSETS & OTHER _2
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 184.8 $ 196.0 Prepaid expenses 115.7 83.5 Withholding tax and other receivables 88.9 96.8 Current financial assets at amortized cost 11.7 9.1 Held-to-maturity investments — 1.3 Other 30.6 27.3 Total other current assets $ 431.7 $ 414.0 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: (In millions) March 31, December 31, Legal settlement liability (a) $ 111.5 $ 171.1 Social security liability 109.5 81.9 Value-added tax and other taxes payable 63.2 78.5 Warranty accruals and project contingencies 57.7 60.9 Legal provisions 54.4 57.7 Compensation accrual 33.8 136.2 Provisions 9.9 16.2 Current portion of accrued pension and other post-retirement benefits 4.6 4.4 Other accrued liabilities 145.2 141.1 Total other current liabilities $ 589.8 $ 748.0 (a) See N ote 1 5 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: (In millions) March 31, December 31, 5.75% 2020 Private Placement Notes due 2025 $ 216.2 $ 221.0 6.50% Senior notes due 2026 202.9 202.9 4.00% 2012 Private Placement Notes due 2027 81.1 82.9 4.00% 2012 Private Placement Notes due 2032 108.1 110.5 3.75% 2013 Private Placement Notes due 2033 108.1 110.5 Bank borrowings and other 314.9 347.6 Unamortized debt issuance costs and discounts (7.5) (8.1) Total debt 1,023.8 1,067.3 Less: current borrowings 136.6 153.8 Long-term debt $ 887.2 $ 913.5 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive income (loss) for three months ended March 31, 2024 and 2023 consisted of the following: (In millions) Foreign Currency Hedging Defined Pension Accumulated Other Accumulated Other December 31, 2022 $ (1,177.7) $ (17.1) $ (106.9) $ (1,301.7) $ (9.8) Other comprehensive income (loss) before reclassifications, net of tax 17.9 (6.1) (2.0) 9.8 (2.0) Reclassification adjustment for net (gains) losses included in net income (loss), net of tax (0.1) 1.6 2.3 3.8 — Other comprehensive income (loss), net of tax 17.8 (4.5) 0.3 13.6 (2.0) March 31, 2023 $ (1,159.9) $ (21.6) $ (106.6) $ (1,288.1) $ (11.8) December 31, 2023 $ (1,120.5) $ 20.9 $ (142.4) $ (1,242.0) $ (6.0) Other comprehensive income (loss) before reclassifications, net of tax (62.8) (34.4) 4.1 (93.1) 0.1 Reclassification adjustment for net (gains) losses included in net income, net of tax 10.5 (3.1) 0.9 8.3 — Other comprehensive income (loss), net of tax (52.3) (37.5) 5.0 (84.8) 0.1 March 31, 2024 $ (1,172.8) $ (16.6) $ (137.4) $ (1,326.8) $ (5.9) |
Schedule of 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) 2024 2023 Details about Accumulated Other Comprehensive Income (loss) Components Amount Reclassified out of Accumulated Other Comprehensive Affected Line Item in the Condensed Consolidated Statements of Income Release of CTA loss (10.5) — Other income (expense), net $ (10.5) $ — Gains (losses) on hedging instruments Foreign exchange contracts $ 0.9 $ (1.7) Revenue 0.6 3.5 Cost of sales 2.8 (4.1) Other income (expense), net 4.3 (2.3) Income (loss) before income taxes 1.2 (0.7) Provision for income taxes $ 3.1 $ (1.6) Net income (loss) Pension and other post-retirement benefits Amortization of prior service credit (cost) $ (0.1) $ (0.1) Other income (expense), net (a) Amortization of net actuarial loss (2.1) (3.2) Other income (expense), net (a) Reclassification adjustment for net gain included in net income 2.3 — Other income (expense), net (a) 0.1 (3.3) Income (loss) before income taxes 1.0 (1.0) Provision for income taxes $ (0.9) $ (2.3) Net income (loss) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | Guarantees made by our consolidated subsidiaries consisted of the following: (In millions) March 31, December 31, Financial guarantees (a) $ 184.2 $ 231.9 Performance guarantees (b) 1,826.7 1,821.7 Maximum potential undiscounted payments $ 2,010.9 $ 2,053.6 (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 non-financial 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, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2024, we held the following material net positions: Net Notional Amount (In millions) USD Equivalent Euro 1,150.0 1,243.0 Norwegian krone 5,120.0 473.0 Brazilian real 2,194.0 439.0 Australian dollar 285.0 186.0 Singapore dollar 118.0 87.0 Malaysian ringgit 229.0 48.0 Czech koruna 383.0 16.0 Swedish krona 103.0 10.0 Canadian dollar 12.0 9.0 Indian rupee 607.0 7.0 Polish zloty 22.0 6.0 Indonesian rupiah (723,464.0) (46.0) British pound (264.0) (334.0) U.S. dollar (2,367.0) (2,367.0) Foreign exchange rate instruments embedded in purchase and sale contracts - The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or comply with government restrictions on the currency used to purchase goods in certain countries. As of March 31, 2024, our portfolio of these instruments included the following material net positions: Net Notional Amount (In millions) USD Equivalent Brazilian real 33.4 6.7 Norwegian krone 9.6 0.9 Euro (10.7) (11.5) U.S. dollar 4.4 4.4 |
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, 2024 December 31, 2023 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments $ 119.5 $ 139.9 $ 183.5 $ 167.9 Long-term - Derivative financial instruments 18.5 42.2 30.4 24.8 Total derivatives designated as hedging instruments 138.0 182.1 213.9 192.7 Derivatives not designated as hedging instruments Foreign exchange contracts Current - Derivative financial instruments (0.2) 15.4 (0.1) 12.0 Long-term - Derivative financial instruments — 2.2 — — Total derivatives not designated as hedging instruments (0.2) 17.6 (0.1) 12.0 Total derivatives $ 137.8 $ 199.7 $ 213.8 $ 204.7 |
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) 2024 2023 Foreign exchange contracts $ (39.8) $ (2.4) |
Schedule of Gain (Loss) Recognized in Income Related to Hedges and Derivatives | The following table represents the effect of cash flow hedge accounting in the condensed consolidated statements of income for the three months ended March 31, 2024 and 2023: (In millions) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Total amount of income (expense) presented in the condensed consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Other income (expense), net Revenue Cost of sales Other income (expense), net Cash Flow hedge gain (loss) recognized in income Foreign Exchange Contracts Amounts reclassified from accumulated OCI to income (loss) $ 0.9 $ 0.6 $ 2.8 $ (1.7) $ 3.5 $ (4.1) Amounts excluded from effectiveness testing 7.0 4.9 (4.9) 1.7 (8.4) 40.1 Total cash flow hedge gain (loss) recognized in income 7.9 5.5 (2.1) — (4.9) 36.0 Gain (loss) recognized in income on derivatives not designated as hedging instruments 0.2 — (21.4) (0.1) 0.3 8.8 Total (a) $ 8.1 $ 5.5 $ (23.5) $ (0.1) $ (4.6) $ 44.8 (a) |
Schedule of Derivative Assets, Gross and Net | The following tables present both gross and net information of recognized derivative instruments: March 31, 2024 December 31, 2023 (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 $ 137.8 $ (91.9) $ 45.9 $ 213.8 $ (103.4) $ 110.4 Derivative liabilities $ 199.7 $ (91.9) $ 107.8 $ 204.7 $ (103.4) $ 101.3 |
Schedule of Derivative Liabilities, Gross and Net | The following tables present both gross and net information of recognized derivative instruments: March 31, 2024 December 31, 2023 (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 $ 137.8 $ (91.9) $ 45.9 $ 213.8 $ (103.4) $ 110.4 Derivative liabilities $ 199.7 $ (91.9) $ 107.8 $ 204.7 $ (103.4) $ 101.3 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 (In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Investments Equity securities $ 26.6 $ 26.6 $ — $ — $ 24.3 $ 24.3 $ — $ — Money market and stable value funds 2.3 — 1.9 — 2.1 — 1.7 — Derivative financial instruments Foreign exchange contracts 137.8 — 137.8 — 213.8 — 213.8 — Total assets $ 166.7 $ 26.6 $ 139.7 $ — $ 240.2 $ 24.3 $ 215.5 $ — Liabilities Derivative financial instruments Foreign exchange contracts 199.7 — 199.7 — 204.7 — 204.7 — Total liabilities $ 199.7 $ — $ 199.7 $ — $ 204.7 $ — $ 204.7 $ — |
DISPOSAL OF MEASUREMENT SOLUT_2
DISPOSAL OF MEASUREMENT SOLUTIONS BUSINESS AND OTHER TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 11, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Nov. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Transaction costs | $ 5 | $ 0.6 | |||
Proceeds from sale of Measurement Solutions business | 186.1 | 0 | |||
Gain on disposal | 75.2 | $ 0 | |||
Disposal Group, Held-for-Sale, Not Discontinued Operations | Measurement Solutions Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration | $ 205 | ||||
Transaction costs | $ 5.2 | $ 5.2 | |||
Proceeds from sale of Measurement Solutions business | $ 186.1 | ||||
Gain on disposal | $ 75.2 |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Lease revenue | $ 62.3 | $ 54.2 |
Total revenue | 2,042 | 1,717.4 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,165.8 | 868.1 |
Products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 813.9 | 795.1 |
Subsea | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,734.8 | 1,387.6 |
Subsea | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Lease revenue | 19.7 | 7.5 |
Total revenue | 1,734.8 | 1,387.6 |
Subsea | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,117.5 | 815.3 |
Subsea | Products | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 597.6 | 564.8 |
Subsea | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 676.8 | 440.4 |
Subsea | Europe and Central Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 358.9 | 378.5 |
Subsea | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 317 | 249.9 |
Subsea | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 295.7 | 210.5 |
Subsea | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 91 | 71.9 |
Subsea | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (4.6) | 36.4 |
Surface Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 307.2 | 329.8 |
Surface Technologies | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Lease revenue | 42.6 | 46.7 |
Total revenue | 307.2 | 329.8 |
Surface Technologies | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 48.3 | 52.8 |
Surface Technologies | Products | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 216.3 | 230.3 |
Surface Technologies | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25.3 | 27.2 |
Surface Technologies | Europe and Central Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 36.7 | 44.2 |
Surface Technologies | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 125.1 | 146.1 |
Surface Technologies | Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12.8 | 9.7 |
Surface Technologies | Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 23.2 | 17.9 |
Surface Technologies | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 84.1 | $ 84.7 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 1,062.7 | $ 1,010.1 | |
Contract liabilities | (1,331.6) | (1,485.8) | |
Net contract liabilities | (268.9) | $ (475.7) | |
Contract with customer, liability, revenue recognized | 479.6 | $ 347.7 | |
Unfavorable impact of revenue from performance obligation satisfied in previous periods | 0.6 | $ 2.6 | |
Favorable negotiations of variable consideration | 23.5 | ||
Offset for individually immaterial positive (negative) impacts | $ 22.9 |
REVENUE - Schedule of Remaining
REVENUE - Schedule of Remaining Revenue Performance Obligations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, total amount | $ 13,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 35.10% |
Revenue, remaining performance obligation, amount | $ 4,737.4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4,315 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 422.4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 64.90% |
Revenue, remaining performance obligation, amount | $ 4,095.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3,876 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 219.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4,659.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Subsea | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4,264.5 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Surface Technologies | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 395.4 |
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, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting, Measurement Disclosures [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information | ||
Decrease in assets | $ 567.9 | |
Total segment revenue | 2,042 | $ 1,717.4 |
Total segment operating profit | 260 | 89.2 |
Total corporate items | (49.4) | (44) |
Income before income taxes | 210.6 | 45.2 |
Operating Segments | ||
Segment Reporting Information | ||
Decrease in assets | 160.9 | |
Operating Segments | Subsea | ||
Segment Reporting Information | ||
Total segment revenue | 1,734.8 | 1,387.6 |
Total segment operating profit | 156.6 | 66.8 |
Operating Segments | Surface Technologies | ||
Segment Reporting Information | ||
Decrease in assets | 152.1 | |
Total segment revenue | 307.2 | 329.8 |
Total segment operating profit | 103.4 | 22.4 |
Corporate | ||
Segment Reporting Information | ||
Decrease in assets | 254.9 | |
Corporate expense | (32.2) | (27.4) |
Net interest expense | (12.7) | (18.7) |
Foreign exchange gains (losses) | $ (4.5) | $ 2.1 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Number of Shares Used for Basic and Diluted Earnings Per Share ("EPS") Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Net income attributable to TechnipFMC plc | $ 157.1 | $ 0.4 |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment [Abstract] | ||
Weighted average number of shares outstanding (in shares) | 433.6 | 442.1 |
Total shares and dilutive securities (in shares) | 446.3 | 455 |
Earnings per share attributable to TechnipFMC plc | ||
Basic (usd per share) | $ 0.36 | $ 0 |
Diluted (usd per share) | $ 0.35 | $ 0 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.9 | 2.6 |
Share option awards | ||
Earnings per share attributable to TechnipFMC plc | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.5 | 1.4 |
Restricted share units | ||
Earnings per share attributable to TechnipFMC plc | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0.7 |
Performance shares | ||
Earnings per share attributable to TechnipFMC plc | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.4 | 0.5 |
Restricted share units | ||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment [Abstract] | ||
Dilutive effect of restricted stock units (in shares) | 5 | 7 |
Share option awards | ||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment [Abstract] | ||
Dilutive effect of restricted stock units (in shares) | 0.1 | 0 |
Performance shares | ||
Weighted Average Number of Shares Outstanding, Diluted, Adjustment [Abstract] | ||
Dilutive effect of restricted stock units (in shares) | 7.6 | 5.9 |
RECEIVABLES - Schedule of Finan
RECEIVABLES - Schedule of Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial assets originated 2020 - 2023 | $ 139.6 | $ 139.5 |
Moody’s rating A3 - Ba2 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial assets originated 2020 - 2023 | 139.6 | 138.1 |
Moody’s rating B3 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financial assets originated 2020 - 2023 | $ 0 | $ 1.4 |
RECEIVABLES - Schedule of Fin_2
RECEIVABLES - Schedule of Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Trade receivables | ||
Beginning balance | $ 34.4 | $ 34.1 |
Current period provision (release) for expected credit losses | (1.2) | 0.5 |
Recoveries | (0.6) | |
Ending balance | 33.2 | 34 |
Contract assets | ||
Beginning balance | 1.4 | 1.1 |
Current period provision (release) for expected credit losses | (0.1) | 0.5 |
Recoveries | 0 | |
Ending balance | 1.3 | 1.6 |
Loans receivable and other | ||
Beginning balance | 2.3 | 0.5 |
Current period provision (release) for expected credit losses | 7.3 | 0 |
Recoveries | 0 | |
Ending balance | $ 9.6 | $ 0.5 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 426.9 | $ 401.3 |
Work in process | 174.9 | 148.2 |
Finished goods | 560.6 | 550.8 |
Inventories, net | $ 1,162.4 | $ 1,100.3 |
OTHER CURRENT ASSETS & OTHER _3
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Value-added tax receivables | $ 184.8 | $ 196 |
Prepaid expenses | 115.7 | 83.5 |
Withholding tax and other receivables | 88.9 | 96.8 |
Current financial assets at amortized cost | 11.7 | 9.1 |
Held-to-maturity investments | 0 | 1.3 |
Other | 30.6 | 27.3 |
Total other current assets | $ 431.7 | $ 414 |
OTHER CURRENT ASSETS & OTHER _4
OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Current Assets and Other Current Liabilities [Abstract] | ||
Legal settlement liability | $ 111.5 | $ 171.1 |
Social security liability | 109.5 | 81.9 |
Value-added tax and other taxes payable | 63.2 | 78.5 |
Warranty accruals and project contingencies | 57.7 | 60.9 |
Legal provisions | 54.4 | 57.7 |
Compensation accrual | 33.8 | 136.2 |
Provisions | 9.9 | 16.2 |
Current portion of accrued pension and other post-retirement benefits | 4.6 | 4.4 |
Other accrued liabilities | 145.2 | 141.1 |
Total other current liabilities | $ 589.8 | $ 748 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Schedule of Equity Method Investments | |||
Income (loss) from equity affiliates | $ 1.4 | $ 14.2 | |
Dofcon Brasil AS | |||
Schedule of Equity Method Investments | |||
Equity method investment, ownership percentage | 50% | ||
Dividends declared | $ 170 | ||
Guarantor obligations, current carrying value | $ 367 | ||
Dofcon Brasil AS | DOF | |||
Schedule of Equity Method Investments | |||
Equity method investment, ownership percentage | 50% | ||
Dofcon Brasil AS | Dofcon Brasil AS | |||
Schedule of Equity Method Investments | |||
Equity method investment, ownership percentage | 100% | ||
Dofcon | Dofcon Brasil AS | |||
Schedule of Equity Method Investments | |||
Equity method investment, ownership percentage | 100% |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - DOF - Related Party - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Loan receivables | $ 85 | |
Interest income | $ 1.8 | $ 0 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument | ||
Unamortized debt issuance costs and discounts | $ (7.5) | $ (8.1) |
Total debt | 1,023.8 | 1,067.3 |
Less: current borrowings | 136.6 | 153.8 |
Long-term debt | $ 887.2 | $ 913.5 |
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 | $ 216.2 | $ 221 |
Private Placement Notes | 4.00% 2012 Private Placement Notes due 2027 | ||
Debt Instrument | ||
Interest rate, stated percentage (in percent) | 4% | 4% |
Long-term debt, gross | $ 81.1 | $ 82.9 |
Private Placement Notes | 4.00% 2012 Private Placement Notes due 2032 | ||
Debt Instrument | ||
Interest rate, stated percentage (in percent) | 4% | 4% |
Long-term debt, gross | $ 108.1 | $ 110.5 |
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 | $ 108.1 | $ 110.5 |
Senior Notes | 6.50% Senior notes due 2026 | ||
Debt Instrument | ||
Interest rate, stated percentage (in percent) | 6.50% | 6.50% |
Long-term debt, gross | $ 202.9 | $ 202.9 |
Bank borrowings and other | ||
Debt Instrument | ||
Long-term debt, gross | $ 314.9 | $ 347.6 |
DEBT - Credit Facilities and De
DEBT - Credit Facilities and Debt (Details) | 3 Months Ended | ||||
Apr. 24, 2023 USD ($) | Feb. 16, 2021 USD ($) | Mar. 31, 2024 USD ($) agency | Dec. 31, 2023 | Jan. 29, 2021 USD ($) | |
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% | 6.50% | |||
Senior Notes | Note 2021 | |||||
Line of Credit Facility | |||||
Debt issuance costs | $ 25,700,000 | ||||
Revolving credit facility | Term Benchmark loans | |||||
Line of Credit Facility | |||||
Decrease in basis points in case of rating upgrade (percent) | 0.0100 | ||||
Revolving credit facility | Minimum | Term Benchmark loans | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate (percent) | 2.50% | ||||
Revolving credit facility | Minimum | Base Rate | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate (percent) | 1.50% | ||||
Revolving credit facility | Maximum | Term Benchmark loans | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate (percent) | 3.50% | ||||
Revolving credit facility | Maximum | Base Rate | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate (percent) | 2.50% | ||||
Revolving credit facility | Letter of Credit | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 450,000,000 | ||||
Letters of credit outstanding amount | $ 0 | ||||
Line of credit facility borrowing capacity | $ 1,250,000,000 | ||||
Revolving credit facility | Line of Credit | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 1,250,000,000 | $ 1,000,000,000 | |||
Debt instrument, term | 5 years | 3 years | |||
Debt issuance costs | $ 16,700,000 | $ 34,800,000 | |||
Revolving credit facility | Letter of Credit | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | 250,000,000 | ||||
Revolving credit facility | Letter of Credit | Five-Year Senior Secured Performance Letters of Credit | |||||
Line of Credit Facility | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Debt instrument, term | 5 years | ||||
Maximum available commitments under accordion feature | $ 1,000,000,000 | ||||
Number of rating agencies providing investment grade rating needed to result in automatic release of collateral | agency | 2 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 21 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Jul. 26, 2023 | Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |||||
Dividends declared (in usd per share) | $ 0.05 | ||||
Annualized dividends declared (in usd per share) | $ 0.20 | ||||
Dividends paid | $ 21.7 | $ 0 | |||
Stock repurchase program, authorized amount | $ 800 | $ 400 | |||
Stock repurchase program, increase in authorized amount | $ 400 | ||||
Treasury stock, value, acquired, par value method | $ 150.1 | $ 455.4 |
STOCKHOLDERS_ EQUITY -Schedule
STOCKHOLDERS’ EQUITY -Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,172.1 | $ 3,276.7 |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | 10.5 | (0.1) |
Other comprehensive income (loss), net of tax | (84.7) | 11.6 |
Ending balance | 3,045.2 | 3,242.7 |
Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,242) | (1,301.7) |
Other comprehensive income (loss) before reclassifications, net of tax | (93.1) | 9.8 |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | 8.3 | 3.8 |
Other comprehensive income (loss), net of tax | (84.8) | 13.6 |
Ending balance | (1,326.8) | (1,288.1) |
Foreign Currency Translation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,120.5) | (1,177.7) |
Other comprehensive income (loss) before reclassifications, net of tax | (62.8) | 17.9 |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | 10.5 | (0.1) |
Other comprehensive income (loss), net of tax | (52.3) | 17.8 |
Ending balance | (1,172.8) | (1,159.9) |
Hedging | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 20.9 | (17.1) |
Other comprehensive income (loss) before reclassifications, net of tax | (34.4) | (6.1) |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | (3.1) | 1.6 |
Other comprehensive income (loss), net of tax | (37.5) | (4.5) |
Ending balance | (16.6) | (21.6) |
Defined Pension and Other Post-Retirement Benefits | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (142.4) | (106.9) |
Other comprehensive income (loss) before reclassifications, net of tax | 4.1 | (2) |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | 0.9 | 2.3 |
Other comprehensive income (loss), net of tax | 5 | 0.3 |
Ending balance | (137.4) | (106.6) |
Accumulated Other Comprehensive Loss Attributable to Non-Controlling Interest | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (6) | (9.8) |
Other comprehensive income (loss) before reclassifications, net of tax | 0.1 | (2) |
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax | 0 | 0 |
Other comprehensive income (loss), net of tax | 0.1 | (2) |
Ending balance | $ (5.9) | $ (11.8) |
STOCKHOLDERS_ EQUITY - Reclassi
STOCKHOLDERS’ EQUITY - Reclassification out of accumulated other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | $ (12.3) | $ (1.3) |
Revenue | 2,042 | 1,717.4 |
Income before income taxes | 210.6 | 45.2 |
Provision for income taxes | 49.7 | 37.4 |
Net income attributable to TechnipFMC plc | 157.1 | 0.4 |
Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | (10.5) | 0 |
Release of CTA loss | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | (10.5) | 0 |
Defined Pension and Other Post-Retirement Benefits | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Income before income taxes | 0.1 | (3.3) |
Provision for income taxes | 1 | (1) |
Net income attributable to TechnipFMC plc | (0.9) | (2.3) |
Amortization of prior service credit (cost) | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | (0.1) | (0.1) |
Amortization of net actuarial loss | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | (2.1) | (3.2) |
Reclassification adjustment for net gain included in net income | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | 2.3 | 0 |
Foreign exchange contracts | Gains (losses) on hedging instruments | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Net income attributable to TechnipFMC plc | 3.1 | (1.6) |
Cash Flow Hedging | Foreign exchange contracts | Gains (losses) on hedging instruments | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification out of Accumulated Other Comprehensive Income | ||
Other income (expense), net | 2.8 | (4.1) |
Revenue | 0.9 | (1.7) |
Cost of sales | 0.6 | 3.5 |
Income before income taxes | 4.3 | (2.3) |
Provision for income taxes | $ 1.2 | $ (0.7) |
SUPPLIER FINANCE PROGRAM OBLI_2
SUPPLIER FINANCE PROGRAM OBLIGATIONS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Structured Finance | ||
Supply Commitment [Line Items] | ||
Amounts due suppliers of Supply Chain Finance program | $ 135.3 | $ 132.9 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Narratives (Details) € in Thousands, $ in Millions | 3 Months Ended | ||||||
Jan. 15, 2024 EUR (€) | Jul. 13, 2023 EUR (€) | Jun. 22, 2023 EUR (€) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) | |
Guarantor Obligations | |||||||
Legal settlement liability | $ | $ 111.5 | $ 171.1 | |||||
CJIP | |||||||
Guarantor Obligations | |||||||
Litigation settlement, amount awarded to other party | € 179,450 | ||||||
Liability recorded during the period | $ | $ 126.5 | ||||||
Payments of scheduled installment | € 51,600 | € 24,700 | |||||
Legal settlement liability | $ 111.5 | € 103,200 | |||||
CJIP | Technip UK | |||||||
Guarantor Obligations | |||||||
Litigation settlement, amount awarded to other party | 154,800 | ||||||
CJIP | Technip Energies France | |||||||
Guarantor Obligations | |||||||
Litigation settlement, amount awarded to other party | 54,100 | ||||||
CJIP | Technip UK and Technip Energies France | |||||||
Guarantor Obligations | |||||||
Litigation settlement, amount awarded to other party | 208,900 | ||||||
CJIP | Technip Energies | |||||||
Guarantor Obligations | |||||||
Litigation settlement, amount awarded to other party | € 29,450 | ||||||
Indirect guarantee of indebtedness | |||||||
Guarantor Obligations | |||||||
Guarantor obligations, term of obligation (in years) | 5 years |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Guarantor Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Guarantor Obligations | ||
Maximum potential undiscounted payments | $ 2,010.9 | $ 2,053.6 |
Financial guarantees | ||
Guarantor Obligations | ||
Maximum potential undiscounted payments | 184.2 | 231.9 |
Performance guarantees | ||
Guarantor Obligations | ||
Maximum potential undiscounted payments | $ 1,826.7 | $ 1,821.7 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.60% | 82.70% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - Mar. 31, 2024 € in Millions, ₨ in Millions, £ in Millions, zł in Millions, kr in Millions, kr in Millions, Rp in Millions, RM in Millions, R$ in Millions, Kč in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | EUR (€) | USD ($) | NOK (kr) | BRL (R$) | AUD ($) | SGD ($) | MYR (RM) | CZK (Kč) | SEK (kr) | CAD ($) | INR (₨) | PLN (zł) | IDR (Rp) | GBP (£) |
Foreign Exchange Forward | Euro | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | € 1,150 | $ 1,243 | ||||||||||||
Foreign Exchange Forward | Norwegian krone | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 473 | kr 5,120 | ||||||||||||
Foreign Exchange Forward | Brazilian real | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 439 | R$ 2194.0 | ||||||||||||
Foreign Exchange Forward | Australian dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 186 | $ 285 | ||||||||||||
Foreign Exchange Forward | Singapore dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 87 | $ 118 | ||||||||||||
Foreign Exchange Forward | Malaysian ringgit | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 48 | RM 229 | ||||||||||||
Foreign Exchange Forward | Czech koruna | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 16 | Kč 383 | ||||||||||||
Foreign Exchange Forward | Swedish krona | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 10 | kr 103 | ||||||||||||
Foreign Exchange Forward | Canadian dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 9 | $ 12 | ||||||||||||
Foreign Exchange Forward | Indian rupee | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 7 | ₨ 607 | ||||||||||||
Foreign Exchange Forward | Polish zloty | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 6 | zł 22 | ||||||||||||
Foreign Exchange Forward | Indonesian rupiah | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 46 | Rp 723,464 | ||||||||||||
Foreign Exchange Forward | British pound | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 334 | £ 264 | ||||||||||||
Foreign Exchange Forward | U.S. dollar | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 2,367 | |||||||||||||
Derivative financial instruments – Embedded Derivatives | Euro | Notional Amount Sold | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | € 10.7 | 11.5 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | Norwegian krone | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 0.9 | kr 9.6 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | Brazilian real | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 6.7 | R$ 33.4 | ||||||||||||
Derivative financial instruments – Embedded Derivatives | U.S. dollar | Notional Amount Bought | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 4.4 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivatives, Fair Value | |||
Derivative assets | $ 137.8 | $ 213.8 | |
Derivative liabilities | 199.7 | 204.7 | |
Foreign exchange contracts | Cash Flow Hedging | |||
Derivatives, Fair Value | |||
Foreign exchange contracts | (39.8) | $ (2.4) | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Derivative assets | 138 | 213.9 | |
Derivative liabilities | 182.1 | 192.7 | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 119.5 | 183.5 | |
Derivative liabilities | 139.9 | 167.9 | |
Derivatives Designated As Hedging Instruments | Foreign exchange contracts | Long-term - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 18.5 | 30.4 | |
Derivative liabilities | 42.2 | 24.8 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Derivative assets | (0.2) | (0.1) | |
Derivative liabilities | 17.6 | 12 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Current - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | (0.2) | (0.1) | |
Derivative liabilities | 15.4 | 12 | |
Derivatives Not Designated As Hedging Instruments | Foreign exchange contracts | Long-term - Derivative financial instruments | |||
Derivatives, Fair Value | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | $ 2.2 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative [Line Items] | ||
Accumulated other comprehensive income (loss) on forecasted cash flow hedges | $ 3,005.9 | $ 3,136.7 |
Cash flow hedge gain expected to be reclassified within 12 months | $ 4.8 | |
Hedges maturity year | 2027 | |
Hedging | ||
Derivative [Line Items] | ||
Accumulated other comprehensive income (loss) on forecasted cash flow hedges | $ (16.8) | $ 19.5 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Gain (Loss) Recognized in Income Related to Hedges and Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Total revenue | $ 2,042 | $ 1,717.4 |
Other income (expense), net | (12.3) | (1.3) |
Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Other income (expense), net | (10.5) | 0 |
Foreign exchange contracts | Revenue | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Loss recognized in income on derivatives not designated as hedging instruments | 0.2 | (0.1) |
Total | 8.1 | (0.1) |
Foreign exchange contracts | Cost of sales | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Loss recognized in income on derivatives not designated as hedging instruments | 0 | 0.3 |
Total | 5.5 | (4.6) |
Foreign exchange contracts | Other income (expense), net | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Loss recognized in income on derivatives not designated as hedging instruments | (21.4) | 8.8 |
Total | (23.5) | 44.8 |
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 | 7 | 1.7 |
Total cash flow hedge gain (loss) recognized in income | 7.9 | 0 |
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 | 4.9 | (8.4) |
Total cash flow hedge gain (loss) recognized in income | 5.5 | (4.9) |
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 | (4.9) | 40.1 |
Total cash flow hedge gain (loss) recognized in income | (2.1) | 36 |
Foreign exchange contracts | Cash Flow Hedging | Amount Reclassified out of Accumulated Other Comprehensive Income (Loss) | Hedging | ||
Location of gain (loss) recognized in income related to hedges and derivatives [Line Items] | ||
Total revenue | 0.9 | (1.7) |
Cost of sales | 0.6 | 3.5 |
Other income (expense), net | $ 2.8 | $ (4.1) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross Amount Recognized | $ 137.8 | $ 213.8 |
Gross Amounts Not Offset, Permitted Under Master Netting Agreements | (91.9) | (103.4) |
Net Amount | 45.9 | 110.4 |
Derivative liabilities | ||
Gross Amount Recognized | 199.7 | 204.7 |
Gross Amounts Not Offset, Permitted Under Master Netting Agreements | (91.9) | (103.4) |
Net Amount | $ 107.8 | $ 101.3 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | $ 45.9 | $ 110.4 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 107.8 | 101.3 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 26.6 | 24.3 |
Money market and stable value funds | 2.3 | 2.1 |
Total assets | 166.7 | 240.2 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 199.7 | 204.7 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 137.8 | 213.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 199.7 | 204.7 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 26.6 | 24.3 |
Money market and stable value funds | 0 | 0 |
Total assets | 26.6 | 24.3 |
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] | ||
Foreign exchange contracts | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Money market and stable value funds | 1.9 | 1.7 |
Total assets | 139.7 | 215.5 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total liabilities | 199.7 | 204.7 |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 137.8 | 213.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 199.7 | 204.7 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities | 0 | 0 |
Money market and stable value funds | 0 | 0 |
Total assets | 0 | 0 |
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] | ||
Foreign exchange contracts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Debt, fair value | $ 670.9 | $ 683.4 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - $ / shares | Apr. 23, 2024 | Jul. 26, 2023 |
Subsequent Event [Line Items] | ||
Dividends declared (in usd per share) | $ 0.05 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends declared (in usd per share) | $ 0.05 |