ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
England and Wales | 98-1283037 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
One St. Paul’s Churchyard London, United Kingdom | EC4M 8AP |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Ordinary shares, $1.00 par value per share | New York Stock Exchange |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer (Do not check if a smaller reporting company) | ý | Smaller reporting company | o |
Emerging growth company | o |
Page | |
PART I | |
PART II | |
PART III | |
PART IV | |
Item 16. Summary | |
• | early involvement in the conceptual design and integrated front-end engineering, or iFEED of subsea development projects to create value through technology and integration of scopes (integrated engineering, procurement, construction, and installation, or iEPCI ) by simplifying field architecture accelerating delivery schedules, and time to first production; |
• | innovative research and development (“R&D”), often in collaboration with clients and partners, to develop leading products and technologies that deliver greater efficiency to the client, lower development costs, and enable frontier developments; |
• | superior project execution capabilities allowing the Company to mobilize the right teams, assets and facilities to capture and profitably execute complex subsea projects and services; |
• | capitalization on combined competencies coming from alliances and partnerships with both clients and suppliers; and |
• | leverage of supplier relationships to capitalize on supply chain market dynamics and implement greater simplification and standardization in products and processes. |
• | Smaller projects and direct awards represent a growing portion of our order mix. In 2017, these awards represented just over half of total inbound orders; the remainder being publicly announced projects as well as subsea service activities. Subsea tiebacks are often part of this mix; these shorter cycle brownfield expansions provide operators with faster paybacks and higher returns. |
• | There is a growing trend towards independent operators and new entrants undertaking subsea developments; we are a natural partner for this customer group because of the ability to offer fully integrated solutions. |
• | Natural gas developments are growing in prominence. We believe that more than half of offshore capital expenditures could be directed at natural gas developments by early next decade. |
• | Spar platforms: capable of operating in a wide range of water depths, the Spar is a low motion floater that can support full drilling with dry trees or with tender assist and flexible or steel catenary risers. The Spar topside is installed offshore either by heavy lift or floatover; |
• | Semi-Submersible Platforms: these platforms are well suited to oil field developments where subsea wells drilled by the mobile offshore drilling unit are appropriate. Semi-Submersibles can operate in a wide range of water depths and have full drilling and large topside capability. We have our own unique design of low-motion Semi-Submersible platforms that can accommodate dry trees; and |
• | Tension-Leg Platform (“TLP”): an appropriate platform for deepwater drilling and production in water depths up to approximately 1,500 meters, the TLP can be configured with full drilling or with tender assist and is generally a dry tree unit. The TLP and our topside can be integrated onto the substructure at a cost effective manner at quayside. |
• | selectivity of clients, projects, and geographies, which serves to maintain early engagement, leading to influence over technological choices, design considerations, and project specifications that make projects economically viable; |
• | technology-driven differentiation with strong project management, which eliminates or significantly reduces technical and project risks, leading to both schedule and cost certainty without compromising safety; and |
• | excellence in project execution, because of our global, multi-center project delivery model complemented by deep partnerships and alliances to ensure the best possible execution for complex projects. |
Name | Age | Current Position and Business Experience (Start Date) | ||
Thierry Pilenko | 60 | Executive Chairman (2017) Chairman and Chief Executive Officer of Technip (2007) | ||
Douglas J. Pferdehirt | 54 | Chief Executive Officer (2017) President and Chief Executive Officer of FMC Technologies (2016) President and Chief Operating Officer of FMC Technologies (2015) Executive Vice President and Chief Operating Officer of FMC Technologies (2012) | ||
Maryann T. Mannen | 55 | Executive Vice President and Chief Financial Officer (2017) Executive Vice President and Chief Financial Officer for FMC Technologies (2014) Senior Vice President and Chief Financial Officer for FMC Technologies (2011) | ||
Dianne B. Ralston | 51 | Executive Vice President, Chief Legal Officer and Secretary (2017) Senior Vice President, General Counsel, and Secretary of FMC Technologies, Inc. (2015) Executive Vice President, General Counsel, and Secretary of Weatherford International plc (2014) Deputy General Counsel—Corporate of Schlumberger (2012) | ||
Bradley D. Beitler | 64 | Executive Vice President—Technology and R&D (2017) Vice President—Technology of FMC Technologies (2009) | ||
Samik Mukherjee | 48 | Executive Vice President—Corporate Development, Strategy, Digital and IT (2017) Senior Vice President—Paris Operating Center of Technip (2016) Senior Vice President—Subsea Strategy and Business Development of Technip (2015) Managing Director and Country Head—India of Technip (2012) | ||
Arnaud Piéton | 44 | Executive Vice President—People and Culture (2017) President—Asia-Pacific Region of Technip (2016) Chief Operating Officer, Subsea—Asia-Pacific Region of Technip (2014) Vice President, Subsea Projects—North America Region of Technip (2011) | ||
Richard G. Alabaster | 57 | President—Surface Technologies (2017) Vice President—Surface Technologies of FMC Technologies (2015) General Manager—Surface Integrated Services of FMC Technologies (2013) General Manager—Fluid Control of FMC Technologies (2010) | ||
Barry Glickman | 49 | President—Engineering, Manufacturing and Supply Chain (2017) Vice President—Subsea Services of FMC Technologies (2015) General Manager—Subsea Systems Western Region of FMC Technologies (2012) | ||
Hallvard Hasselknippe | 58 | President—Subsea (2017) President and Chief Operating Officer—Subsea of Technip (2014) Chief Operating Officer—Subsea Asia-Pacific Region of Technip (2010) | ||
Nello Uccelletti | 64 | President—Onshore/Offshore (2017) President—Onshore/Offshore of Technip (2014) Senior Vice President—Onshore/Offshore of Technip (2008) |
• | demand for hydrocarbons, which is affected by worldwide population growth, economic growth rates and general economic and business conditions; |
• | costs of exploring for, producing and delivering oil and natural gas; |
• | political and economic uncertainty and socio-political unrest; |
• | government policies and subsidies; |
• | available excess production capacity within the Organization of Petroleum Exporting Countries (“OPEC”) and the level of oil production by non-OPEC countries; |
• | oil refining capacity and shifts in end-customer preferences toward fuel efficiency and the use of natural gas; |
• | technological advances affecting energy consumption; |
• | potential acceleration of the development of alternative fuels; |
• | access to capital and credit markets, which may affect our customers’ activity levels and spending for our products and services; and |
• | natural disasters. |
• | unforeseen additional costs related to the purchase of substantial equipment necessary for contract fulfillment; |
• | mechanical failure of our production equipment and machinery; |
• | delays caused by local weather conditions and/or natural disasters (including earthquakes and floods); and |
• | a failure of suppliers or subcontractors to perform their contractual obligations. |
• | shortages of key equipment, materials or skilled labor; |
• | unscheduled delays in the delivery or ordered materials and equipment; |
• | issues regarding the design and engineering; and |
• | shipyard delays and performance issues. |
• | nationalization and expropriation; |
• | potentially burdensome taxation; |
• | inflationary and recessionary markets, including capital and equity markets; |
• | civil unrest, labor issues, political instability, terrorist attacks, cyber-terrorism, military activity and wars; |
• | supply disruptions in key oil producing countries; |
• | the ability of OPEC to set and maintain production levels and pricing; |
• | trade restrictions, trade protection measures or price controls; |
• | sanctions, such as restrictions by the United States against countries deemed to sponsor terrorism; |
• | foreign ownership restrictions; |
• | import or export licensing requirements; |
• | restrictions on operations, trade practices, trade partners and investment decisions resulting from domestic and foreign laws and regulations; |
• | regime changes; |
• | changes in, and the administration of, treaties, laws and regulations; |
• | inability to repatriate income or capital; |
• | reductions in the availability of qualified personnel; |
• | foreign currency fluctuations or currency restrictions; and |
• | fluctuations in the interest rate component of forward foreign currency rates. |
• | make it more difficult for us to make payments on our debt; |
• | require us to dedicate a substantial portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, distributions and other general partnership purposes; |
• | increase our vulnerability to adverse economic or industry conditions; |
• | limit our ability to obtain additional financing to enable us to react to changes in our business; or |
• | place us at a competitive disadvantage compared to businesses in our industry that have less debt. |
• | managing a significantly larger company; |
• | coordinating geographically separate organizations; |
• | the potential diversion of management focus and resources from other strategic opportunities and from operational matters; |
• | aligning and executing our strategy; |
• | retaining existing customers and attracting new customers; |
• | maintaining employee morale and retaining key management and other employees; |
• | integrating two unique business cultures, which may prove to be incompatible; |
• | the possibility of faulty assumptions underlying expectations regarding the integration process; |
• | consolidating corporate and administrative infrastructures and eliminating duplicative operations; |
• | coordinating distribution and marketing efforts; |
• | integrating IT, communications and other systems; |
• | changes in applicable laws and regulations; |
• | managing tax costs or inefficiencies associated with integrating our operations; |
• | unforeseen expenses or delays associated with the Merger; and |
• | taking actions that may be required in connection with obtaining regulatory approvals. |
Location | Segment | |
Africa | ||
Accra, Ghana | Subsea | |
Danda, Angola | Subsea | |
Hassi-Messaoud, Algeria | Surface | |
Lagos, Nigeria | Subsea | |
Lobito, Angola | Subsea | |
Luanda, Angola | Subsea | |
Malabo, Equatorial New Guinea | Subsea | |
Port Harcourt, Nigeria | Subsea | |
Takoradi, Ghana | Subsea | |
Asia | ||
Hyderadbad, India | Surface | |
Jakarta, Indonesia | Subsea, Onshore/Offshore, Surface | |
Kuala Lumpur, Malaysia | Subsea, Onshore/Offshore | |
Labuan, Malaysia | Subsea | |
New Delhi, India | Onshore/Offshore | |
Noida, India | Onshore/Offshore | |
Nusajaya, Malaysia | Subsea, Surface | |
Singapore | Surface | |
Australia | ||
Henderson, Australia | Subsea | |
Perth, Australia | Subsea, Onshore/Offshore | |
Europe | ||
Aberdeen (Scotland), United Kingdom | Subsea, Surface | |
Aktau, Kazakhstan | Subsea, Surface | |
Atyrau, Kazakhstan | Subsea, Surface | |
Arnhem, The Netherlands | Surface | |
Barcelona, Spain | Onshore/Offshore | |
Bergen, Norway | Subsea, Surface | |
Compiegne, France | Subsea | |
Courbevoie (Paris - La Défense), France | Subsea, Onshore/Offshore | |
Dunfermline, Scotland | Subsea, Surface | |
Ellerbeck, Germany | Surface | |
Evanton (Scotland), United Kingdom | Subsea | |
Horten, Norway | Subsea | |
Kongsberg, Norway | Subsea, Surface | |
Le Trait, France | Subsea |
London, United Kingdom | Subsea, Onshore/Offshore | |
Lyon, France | Subsea | |
Newcastle, United Kingdom | Subsea | |
Orkanger, Norway | Subsea | |
Oslo, Norway | Subsea | |
Paris, France | Subsea, Onshore/Offshore | |
Pori (Mäntyluoto), Finland | Onshore/Offshore | |
Rome, Italy | Onshore/Offshore | |
Schoonebeck, Netherlands | Surface | |
Sens, France | Surface | |
Stavanger, Norway | Subsea, Surface | |
Zoetermeer, Netherlands | Onshore/Offshore | |
Middle East | ||
Abu Dhabi, United Arab Emirates | Onshore/Offshore, Surface | |
Dammam, Saudi Arabia | Surface | |
North America | ||
Brighton (Colorado), United States | Surface | |
Corpus Christi (Texas), United States | Surface | |
Davis (California), United States | Subsea | |
Houston (Texas), United States | Subsea, Onshore/Offshore, Surface | |
Edmonton (Alberta), Canada | Surface | |
Erie (Pennsylvania), United States | Surface | |
Odessa (Texas), United States | Surface | |
Oklahoma City (Oklahoma), United States | Surface | |
San Antonio (Texas), United States | Surface | |
Stephenville (Texas), United States | Surface | |
St. John’s (Newfoundland), Canada | Subsea | |
Theodore (Alabama), United States | Subsea | |
South America | ||
Bogota, Colombia | Onshore/Offshore | |
Macaé, Brazil | Subsea | |
Maracaibo, Venezuela | Surface | |
Neuquén, Argentina | Surface | |
Rio de Janeiro, Brazil | Subsea, Surface | |
São João da Barra, Brazil | Subsea | |
Vitória, Brazil | Subsea | |
Yogal, Colombia | Surface |
Vessel Name | Vessel Type | Special Equipment | ||
Deep Blue | PLSV | Reeled pipelay/flexible pipelay/umbilical systems | ||
Deep Energy | PLSV | Reeled pipelay/flexible pipelay/umbilical systems | ||
Apache II | PLSV | Reeled pipelay/umbilical systems | ||
Global 1200 | PLSV/HCV | Conventional pipelay/Heavy handling operations | ||
Global 1201 | PLSV/HCV | Conventional pipelay/Heavy handling operations | ||
Deep Orient | HCV | Construction/installation systems | ||
North Sea Atlantic (1) | HCV | Construction/installation systems | ||
Skandi Africa (1) | HCV | Construction/installation systems | ||
North Sea Giant (1) | HCV | Construction/installation systems | ||
Deep Arctic | DSV/HCV | Diver support systems | ||
Wellservicer (3) | DSV/HCV | Diver support systems | ||
Deep Explorer | DSV/HCV | Diver support systems | ||
Skandi Vitória | PLSV | Flexible pipelay/umbilical systems | ||
Skandi Niterói | PLSV | Flexible pipelay/umbilical systems | ||
Coral do Atlantico | PLSV | Flexible pipelay/umbilical systems | ||
Estrela do Mar | PLSV | Flexible pipelay/umbilical systems | ||
Skandi Açu | PLSV | Flexible pipelay/umbilical systems | ||
Skandi Búzios | PLSV | Flexible pipelay/umbilical systems | ||
Skandi Olinda (2) | PLSV | Flexible pipelay/umbilical systems | ||
Skandi Recife (2) | PLSV | Flexible pipelay/umbilical systems |
(1) | Vessels under long term charter. |
(2) | Vessel under construction. |
(3) | Vessels held for sale. |
2017 | 2016 | ||||||||||||||||||||||||||||||
4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||||||||||||||||||||
Share closing price: | |||||||||||||||||||||||||||||||
High | $ | 31.48 | $ | 28.89 | $ | 33.64 | $ | 36.73 | $ | 36.31 | $ | 29.67 | $ | 30.49 | $ | 29.22 | |||||||||||||||
Low | $ | 24.96 | $ | 25.17 | $ | 26.49 | $ | 31.22 | $ | 29.88 | $ | 24.20 | $ | 24.42 | $ | 22.77 |
Closing share price at December 29, 2017 | $ | 31.31 | |||||||||||||||
Closing share price at March 27, 2018 | $ | 29.00 | |||||||||||||||
Number of ordinary share stockholders of record at March 27, 2018 | 697 |
(shares in thousands) | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans(1) | ||||||
Equity compensation plans approved by security holders | 4,883.8 | $ | 36.35 | 30,284.5 | |||||
Equity compensation plans not approved by security holders | — | — | — | ||||||
Total | 4,883.8 | $ | 36.35 | 30,284.5 |
(1) | The table includes our ordinary shares available for future issuance under the TechnipFMC plc Incentive Award Plan as well as plans approved prior to, and still active on the date of, the Merger. This number includes 3,170.5 thousand shares available for issuance for non-vested share awards that vest after December 31, 2017 under the TechnipFMC plc Incentive Award Plan, and 6,184.5 thousand shares issued under plans approved prior to the merger that vest after December 31, 2017. |
Issuer Purchases of Equity Securities Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (b) | ||||||||
October 1, 2017 – October 31, 2017 | 732,500 | $ | 26.53 | 732,100 | 17,642,911 | |||||||
November 1, 2017 – November 30, 2017 | 668,100 | $ | 27.79 | 667,740 | 16,975,171 | |||||||
December 1, 2017 – December 31, 2017 | 583,580 | $ | 29.10 | 583,000 | 16,392,171 | |||||||
Total | 1,984,180 | 1,982,840 | 16,392,171 |
(a) | Represents 1,982,840 ordinary shares purchased and canceled and 1,340 ordinary shares purchased and held in an employee benefit trust established for the FMC Technologies, Inc. Non-Qualified Savings and Investment Plan (the “Non-Qualified Plan”). In addition to these shares purchased on the open market, we sold 6,680 registered ordinary shares held in this trust, as directed by the beneficiaries during the three months ended December 31, 2017. |
(b) | In April 2017, we announced a repurchase plan approved by our Board of Directors authorizing up to $500 million to repurchase shares of our issued and outstanding ordinary shares through open market purchases. Following a court-approved reduction of our capital, we implemented our share repurchase program on September 25, 2017. |
(In millions, except per share data) Years Ended December 31 | 2017 (1) | 2016 | 2015 | ||||||||
Statement of income data: | |||||||||||
Total revenue | $ | 15,056.9 | $ | 9,199.6 | $ | 11,471.9 | |||||
Total costs and expenses | $ | 14,091.7 | $ | 8,743.6 | $ | 11,198.3 | |||||
Net income | $ | 134.2 | $ | 371.1 | $ | 14.0 | |||||
Net income attributable to TechnipFMC plc | $ | 113.3 | $ | 393.3 | $ | 14.4 | |||||
Earnings per share from continuing operations attributable to TechnipFMC plc: | |||||||||||
Basic earnings per share | $ | 0.24 | $ | 3.29 | $ | 0.13 | |||||
Diluted earnings per share | $ | 0.24 | $ | 3.16 | $ | 0.13 | |||||
(In millions) As of December 31 | 2017 (1) | 2016 | 2015 | ||||||||
Balance sheet data: | |||||||||||
Total assets | $ | 28,263.7 | $ | 18,679.3 | $ | 14,953.6 | |||||
Long-term debt, less current portion | $ | 3,777.9 | $ | 1,869.3 | $ | 2,005.0 | |||||
Total TechnipFMC plc stockholders’ equity | $ | 13,387.9 | $ | 5,055.8 | $ | 4,947.2 |
(In millions) Years Ended December 31 | 2017 (1) | 2016 | 2015 | ||||||||
Other financial information: | |||||||||||
Capital expenditures | $ | 255.7 | $ | 312.9 | $ | 325.5 | |||||
Cash flows provided by operating activities | $ | 210.7 | $ | 493.8 | $ | 700.3 | |||||
Net (debt) cash (2) | $ | 2,882.4 | $ | 3,716.4 | $ | 370.4 | |||||
Order backlog (3) | $ | 12,982.8 | $ | 15,002.0 | $ | 18,475.5 |
(1) | The results of our operations for the year ended December 31, 2017 consist of the combined results of operations of Technip and FMC Technologies. Due to the Merger, FMC Technologies’ results of operations have been included in our financial statements for periods subsequent to the consummation of the merger on January 16, 2017 and as result data presented for the year December 31, 2017 is not comparable to actual results presented in prior periods. Since Technip was identified as the accounting acquiree for the Merger, our actual results for the years ended December 31, 2016 and December 31, 2015 represent Technip only. |
(2) | Net (debt) cash consists of cash and cash equivalents less short-term debt, long-term debt and the current portion of long-term debt. Net (debt) cash is a non-GAAP measure that management uses to evaluate our capital structure and financial leverage. See “Liquidity and Capital Resources” in Part II, Item 7 of this Annual Report on Form 10-K for additional discussion and reconciliations of net (debt) cash. |
(3) | Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date. |
Year Ended December 31, | Change | ||||||||||||||||||||||||||
(In millions, except percentages) | 2017 | 2016 Pro Forma** | 2016 | 2015 | 2017 vs. 2016 Pro Forma | 2016 vs. 2015 | |||||||||||||||||||||
Revenue | $ | 15,056.9 | $ | 19,068.8 | $ | 9,199.6 | $ | 11,471.9 | $ | (4,011.9 | ) | (21)% | $ | (2,272.3 | ) | (20)% | |||||||||||
Costs and expenses: | |||||||||||||||||||||||||||
Cost of sales | 12,524.6 | 16,382.5 | 7,630.0 | 9,975.1 | (3,857.9 | ) | (24) | (2,345.1 | ) | (24) | |||||||||||||||||
Selling, general and administrative expense | 1,060.9 | 1,229.9 | 572.6 | 689.6 | (169.0 | ) | (14) | (117.0 | ) | (17) | |||||||||||||||||
Research and development expense | 212.9 | 219.5 | 105.4 | 95.5 | (6.6 | ) | (3) | 9.9 | 10 | ||||||||||||||||||
Impairment, restructuring and other expense | 191.5 | 443.6 | 343.0 | 438.1 | (252.1 | ) | (57) | (95.1 | ) | (22) | |||||||||||||||||
Merger transaction and integration costs | 101.8 | 137.8 | 92.6 | — | (36.0 | ) | (26) | 92.6 | * | ||||||||||||||||||
Total costs and expenses | 14,091.7 | 18,413.3 | 8,743.6 | 11,198.3 | (4,321.6 | ) | (23) | (2,454.7 | ) | (22) | |||||||||||||||||
Other income (expense), net | (25.9 | ) | 12.1 | 6.5 | (102.9 | ) | (38.0 | ) | (314) | 109.4 | 106 | ||||||||||||||||
Income from equity affiliates | 55.6 | 10.9 | 117.7 | 51.0 | 44.7 | 410 | 66.7 | 131 | |||||||||||||||||||
Net interest expense | (315.2 | ) | (29.1 | ) | (28.8 | ) | (71.2 | ) | (286.1 | ) | (983) | 42.4 | 60 | ||||||||||||||
Income before income taxes | 679.7 | 649.4 | 551.4 | 150.5 | 30.3 | 5 | 400.9 | 266 | |||||||||||||||||||
Provision for income taxes | 545.5 | 284.7 | 180.3 | 136.5 | 260.8 | 92 | 43.8 | 32 | |||||||||||||||||||
Income from continuing operations | 134.2 | 364.7 | 371.1 | 14.0 | (230.5 | ) | (63) | 357.1 | * | ||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (10.1 | ) | — | — | 10.1 | 100 | — | — | ||||||||||||||||||
Net income | 134.2 | 354.6 | 371.1 | 14.0 | (220.4 | ) | (62) | 357.1 | * | ||||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | (20.9 | ) | 23.6 | 22.2 | 0.4 | (44.5 | ) | (189) | 21.8 | * | |||||||||||||||||
Net income attributable to TechnipFMC plc | $ | 113.3 | $ | 378.2 | $ | 393.3 | $ | 14.4 | $ | (264.9 | ) | (70)% | 378.9 | * |
* | Not meaningful |
** | Refer to “Pro Forma Results of Operations” above for further information related to the presentation of and transactions included in pro forma results for the year ended December 31, 2016. |
Year Ended December 31, | Favorable/(Unfavorable) | ||||||||||||||||||||||||||||
(In millions, except %) | 2017 (1) | 2016 Pro Forma | 2016 | 2015 | 2017 vs. 2016 Pro Forma | 2016 vs. 2015 | |||||||||||||||||||||||
Revenue | $ | 5,877.4 | $ | 9,150.5 | $ | 5,850.5 | $ | 6,520.6 | $ | (3,273.1 | ) | (36)% | $ | (670.1 | ) | (10)% | |||||||||||||
Operating profit | $ | 460.5 | $ | 982.6 | $ | 732.0 | $ | 866.9 | $ | (522.1 | ) | (53)% | $ | (134.9 | ) | (16)% | |||||||||||||
Operating profit as a percent of revenue | 7.8 | % | 10.7 | % | 12.5 | % | 13.3 | % | (2.9 | ) pts. | (0.8 | ) pts. |
(1) | Due to the Merger, there were 11.5 months included in the year ended 2017 for legacy FMC Technologies, compared with twelve months in pro forma 2016. Refer to Note 2 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further information related to the Merger. |
Year Ended December 31, | Favorable/(Unfavorable) | ||||||||||||||||||||||||||||
(In millions, except %) | 2017 | 2016 Pro Forma | 2016 | 2015 | 2017 vs. 2016 Pro Forma | 2016 vs. 2015 | |||||||||||||||||||||||
Revenue | $ | 7,904.5 | $ | 8,690.0 | $ | 3,349.1 | $ | 4,951.3 | $ | (785.5 | ) | (9)% | $ | (1,602.2 | ) | (32)% | |||||||||||||
Operating profit (loss) | $ | 810.9 | $ | 184.5 | $ | 34.1 | $ | (313.3 | ) | $ | 626.4 | 340% | $ | 347.4 | 111% | ||||||||||||||
Operating profit (loss) as a percent of revenue | 10.3 | % | 2.1 | % | 1.0 | % | (6.3 | )% | 8.2 | pts. | 7.3 | pts. |
Year Ended December 31, | Favorable/(Unfavorable) | |||||||||||||
(In millions, except %) | 2017 (1) | 2016 Pro Forma | 2017 vs. 2016 Pro Forma | |||||||||||
Revenue | $ | 1,274.6 | $ | 1,252.2 | $ | 22.4 | 2% | |||||||
Operating profit (loss) | $ | 82.7 | $ | (122.0 | ) | $ | 204.7 | 168% | ||||||
Operating profit (loss) as a percent of revenue | 6.5 | % | (9.7 | )% | 16.2 | pts. |
(1) | Due to the Merger, there were 11.5 months included in the year ended 2017 for legacy FMC Technologies, compared with twelve months in 2016. Refer to Note 2 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. |
(2) | Prior to the Merger, we reported our business in two segments, Subsea and Onshore/Offshore. As a result of the Merger and the addition of FMC Technologies, we began reporting our business in three segments. As such, actual results of operations for 2016 and 2015 do not include Surface Technologies. |
Year Ended December 31, | Favorable/(Unfavorable) | ||||||||||||||||||||||||||
(In millions, except %) | 2017 | 2016 Pro Forma | 2016 | 2015 | 2017 vs. 2016 Pro Forma | 2016 vs. 2015 | |||||||||||||||||||||
Corporate expense | $ | (359.2 | ) | $ | (366.6 | ) | $ | (185.9 | ) | $ | (331.9 | ) | $ | 7.4 | 2% | $ | 146.0 | 44% |
Inbound Orders Year Ended December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Subsea | $ | 5,143.6 | $ | 2,384.9 | |||
Onshore/Offshore | 3,812.9 | 3,689.0 | |||||
Surface Technologies | 1,239.8 | — | |||||
Total inbound orders | $ | 10,196.3 | $ | 6,073.9 |
Order Backlog December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Subsea | $ | 6,203.9 | $ | 4,909.0 | |||
Onshore/Offshore | 6,369.1 | 10,093.0 | |||||
Surface Technologies | 409.8 | — | |||||
Total order backlog | $ | 12,982.8 | $ | 15,002.0 |
(In millions) | December 31, 2017 | December 31, 2016 | |||||
Cash and cash equivalents | $ | 6,737.4 | $ | 6,269.3 | |||
Short-term debt and current portion of long-term debt | (77.1 | ) | (683.6 | ) | |||
Long-term debt, less current portion | (3,777.9 | ) | (1,869.3 | ) | |||
Net cash | $ | 2,882.4 | $ | 3,716.4 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Cash provided by operating activities | $ | 210.7 | $ | 493.8 | $ | 700.3 | |||||
Cash provided (required) by investing activities | 1,250.0 | 3,110.5 | (335.1 | ) | |||||||
Cash required by financing activities | (1,054.8 | ) | (534.6 | ) | (127.2 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 62.2 | 21.6 | (320.6 | ) | |||||||
Increase (decrease) in cash and cash equivalents | $ | 468.1 | $ | 3,091.3 | $ | (82.6 | ) |
(In millions) | December 31, 2017 | December 31, 2016 | |||||
Revolving credit facility | $ | — | $ | — | |||
Bilateral credit facilities | — | — | |||||
Commercial paper | 1,450.4 | 210.8 | |||||
Synthetic bonds due 2021 | 502.4 | 431.8 | |||||
Convertible bonds due 2017 | — | 524.5 | |||||
3.45% Senior Notes due 2022 | 500.0 | — | |||||
5.00% Notes due 2020 | 239.9 | 210.8 | |||||
3.40% Notes due 2022 | 179.9 | 158.1 | |||||
3.15% Notes due 2023 | 155.9 | 137.0 | |||||
3.15% Notes due 2023 | 149.9 | 131.8 | |||||
4.00% Notes due 2027 | 89.9 | 79.1 | |||||
4.00% Notes due 2032 | 119.9 | 105.4 | |||||
3.75% Notes due 2033 | 119.9 | 105.4 | |||||
Bank borrowings | 332.5 | 452.1 | |||||
Other | 28.2 | 20.3 | |||||
Unamortized debt issuance costs and discounts | (13.8 | ) | (14.2 | ) | |||
Total borrowings | $ | 3,855.0 | $ | 2,552.9 |
(In millions) Description | Amount | Debt Outstanding | Commercial Paper Outstanding (a) | Letters of Credit | Unused Capacity | Maturity | |||||||||||||||
Five-year revolving credit facility | $ | 2,500.0 | $ | — | $ | 1,450.4 | $ | — | $ | 1,049.6 | January 2022 |
(a) | Under our commercial paper program, we have the ability to access up to $1.5 billion and €1.0 billion of financing through our commercial paper dealers. Our available capacity under our revolving credit facility is reduced by any outstanding commercial paper. |
Payments Due by Period | |||||||||||||||||||
(In millions) Contractual obligations | Total payments | Less than 1 year | 1-3 years | 3 -5 years | After 5 years | ||||||||||||||
Debt (a) | $ | 3,855.0 | $ | 77.1 | $ | 1,972.9 | $ | 1,179.0 | $ | 626.0 | |||||||||
Interest on debt (a) | 409.4 | 62.6 | 125.2 | 96.5 | 125.1 | ||||||||||||||
Operating leases (b) | 1,783.6 | 347.2 | 556.4 | 302.9 | 577.1 | ||||||||||||||
Purchase obligations (c) | 5,263.4 | 4,140.2 | 912.8 | 11.7 | 198.7 | ||||||||||||||
Pension and other post-retirement benefits (d) | 25.2 | 25.2 | — | — | — | ||||||||||||||
Unrecognized tax benefits (e) | 96.3 | 96.3 | — | — | — | ||||||||||||||
Other contractual obligations (f) | $ | 312.0 | $ | 69.7 | $ | 151.6 | $ | 70.0 | $ | 20.7 | |||||||||
Total contractual obligations | $ | 11,744.9 | $ | 4,818.3 | $ | 3,718.9 | $ | 1,660.1 | $ | 1,547.6 |
(a) | Our available debt is dependent upon our compliance with covenants, including negative covenants related to liens and our total capitalization ratio. Any violation of covenants or other events of default, which are not waived or cured, or changes in our credit rating could have a material impact on our ability to maintain our committed financing arrangements. |
(b) | In 2014 we entered into construction and operating lease agreements to finance the construction of manufacturing and office facilities located in Houston, TX. In January 2016, construction of the facilities was completed and the operating lease commenced. Upon expiration of the lease term in September 2021, we have the option to renew the lease, purchase the facilities or re-market the facilities on behalf of the lessor, including certain guarantees of residual value under the re-marketing option. |
(c) | In the normal course of business, we enter into agreements with our suppliers to purchase raw materials or services. These agreements include a requirement that our supplier provide products or services to our specifications and require us to make a firm purchase commitment to our supplier. As substantially all of these commitments are associated with purchases made to fulfill our customers’ orders, the costs associated with these agreements will ultimately be reflected in cost of sales on our consolidated statements of income. |
(d) | We expect to contribute approximately $19.9 million to our international pension plans during 2018. Required contributions for future years depend on factors that cannot be determined at this time. Additionally, we expect to contribute $5.3 million to our U.S. Non-Qualified Defined Benefit Pension Plan in 2018. |
(e) | It is reasonably possible that $96.3 million of liabilities for unrecognized tax benefits will be settled during 2018, and this amount is reflected in income taxes payable in our consolidated balance sheet as of December 31, 2017. Although unrecognized tax benefits are not contractual obligations, they are presented in this table because they represent demands on our liquidity. |
(f) | Other contractual obligations represent a mandatorily redeemable financial liability. In the fourth quarter of 2016, we obtained voting control interests in legal onshore/offshore contract entities which own and account for the design, engineering and construction of the Yamal LNG plant. Prior to the amendments of the contractual terms that provided us with voting interest control, we accounted for these entities under the equity method of accounting based on our previously held interests in each of these entities. A mandatorily redeemable financial liability of $174.8 million was recognized as of December 31, 2016 to account for the fair value of the non-controlling interests. During the year ended December 31, 2017 we revalued the liability to reflect current expectations about the obligation. Refer to Note 22 for further information regarding the fair value measurement assumptions of the mandatorily redeemable financial liability and related changes in its fair value. |
Amount of Commitment Expiration per Period | |||||||||||||||||||
(In millions) Other off-balance sheet arrangements | Total amount | Less than 1 year | 1-3 years | 3-5 years | After 5 years | ||||||||||||||
Letters of credit and bank guarantees (a) | $ | 4,566.4 | $ | 2,174.4 | $ | 2,164.4 | $ | 185.1 | $ | 42.5 | |||||||||
Surety bonds (a) | 37.2 | 29.7 | 7.5 | — | — | ||||||||||||||
Total other off-balance sheet arrangements | $ | 4,603.6 | $ | 2,204.1 | $ | 2,171.9 | $ | 185.1 | $ | 42.5 |
(a) | As collateral for our performance on certain sales contracts or as part of our agreements with insurance companies, we are liable under letters of credit, surety bonds and other bank guarantees. Our ability to generate revenue from certain contracts is dependent upon our ability to obtain these off-balance sheet financial instruments. These off-balance sheet financial instruments may be renewed, revised or released based on changes in the underlying commitment. Historically, our commercial commitments have not been drawn upon to a material extent; consequently, management believes it is not reasonably likely there will be material claims against these commitments. However, should these financial instruments become unavailable to us, our operations and liquidity could be negatively impacted. |
(In millions, except basis points) | Increase (Decrease) in 2017 Pension Expense Before Income Taxes | Increase (Decrease) in Projected Benefit Obligation at December 31, 2017 | |||||
25 basis point decrease in discount rate | $ | (0.1 | ) | $ | 62.9 | ||
25 basis point increase in discount rate | $ | — | $ | (59.0 | ) | ||
25 basis point decrease in expected long-term rate of return on plan assets | $ | 3.1 | $ | — | |||
25 basis point increase in expected long-term rate of return on plan assets | $ | (3.1 | ) | $ | — |
Year Ended December 31, | |||||||||||
(In millions, except per share data) | 2017 | 2016 | 2015 | ||||||||
Revenue: | |||||||||||
Service revenue | $ | 12,210.5 | $ | 9,128.7 | $ | 11,323.1 | |||||
Product revenue | 2,651.8 | 70.9 | 148.8 | ||||||||
Lease and other revenue | 194.6 | — | — | ||||||||
Total revenue | 15,056.9 | 9,199.6 | 11,471.9 | ||||||||
Costs and expenses: | |||||||||||
Cost of service revenue | 9,984.0 | 7,585.7 | 9,863.0 | ||||||||
Cost of product revenue | 2,403.4 | 44.3 | 112.1 | ||||||||
Cost of lease and other revenue | 137.2 | — | — | ||||||||
Selling, general and administrative expense | 1,060.9 | 572.6 | 689.6 | ||||||||
Research and development expense | 212.9 | 105.4 | 95.5 | ||||||||
Impairment, restructuring and other expense (Note 5) | 191.5 | 343.0 | 438.1 | ||||||||
Merger transaction and integration costs (Note 2) | 101.8 | 92.6 | — | ||||||||
Total costs and expenses | 14,091.7 | 8,743.6 | 11,198.3 | ||||||||
Other income (expense), net | (25.9 | ) | 6.5 | (102.9 | ) | ||||||
Income from equity affiliates (Note 8) | 55.6 | 117.7 | 51.0 | ||||||||
Income before interest income, interest expense and income taxes | 994.9 | 580.2 | 221.7 | ||||||||
Interest income | 140.8 | 85.3 | 77.7 | ||||||||
Interest expense | (456.0 | ) | (114.1 | ) | (148.9 | ) | |||||
Income before income taxes | 679.7 | 551.4 | 150.5 | ||||||||
Provision for income taxes (Note 17) | 545.5 | 180.3 | 136.5 | ||||||||
Net income | 134.2 | 371.1 | 14.0 | ||||||||
Net (income) loss attributable to noncontrolling interests | (20.9 | ) | 22.2 | 0.4 | |||||||
Net income attributable to TechnipFMC plc | $ | 113.3 | $ | 393.3 | $ | 14.4 | |||||
Earnings per share attributable to TechnipFMC plc (Note 4): | |||||||||||
Basic | $ | 0.24 | $ | 3.29 | $ | 0.13 | |||||
Diluted | $ | 0.24 | $ | 3.16 | $ | 0.13 | |||||
Weighted average shares outstanding (Note 4): | |||||||||||
Basic | 466.7 | 119.4 | 114.9 | ||||||||
Diluted | 468.3 | 125.1 | 127.3 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 134.2 | $ | 371.1 | $ | 14.0 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments (1) | (87.2 | ) | (71.4 | ) | (394.9 | ) | |||||
Net gains (losses) on hedging instruments: | |||||||||||
Net gains (losses) arising during the period | 53.8 | (64.8 | ) | (70.5 | ) | ||||||
Reclassification adjustment for net gains included in net income | 101.2 | 120.1 | 67.8 | ||||||||
Net gains (losses) on hedging instruments (2) | 155.0 | 55.3 | (2.7 | ) | |||||||
Pension and other post-retirement benefits: | |||||||||||
Net gains arising during the period | 43.2 | 7.0 | 18.6 | ||||||||
Prior service cost arising during the period | — | — | 0.2 | ||||||||
Reclassification adjustment for settlement losses included in net income | (15.2 | ) | (7.4 | ) | — | ||||||
Reclassification adjustment for amortization of prior service cost included in net income | 0.7 | 0.5 | 0.5 | ||||||||
Reclassification adjustment for amortization of net actuarial loss included in net income | 1.8 | 0.7 | 2.6 | ||||||||
Net pension and other post-retirement benefits (3) | 30.5 | 0.8 | 21.9 | ||||||||
Other comprehensive income (loss), net of tax | 98.3 | (15.3 | ) | (375.7 | ) | ||||||
Comprehensive income (loss) | 232.5 | 355.8 | (361.7 | ) | |||||||
Comprehensive (income) loss attributable to noncontrolling interest | (21.3 | ) | 20.9 | 3.0 | |||||||
Comprehensive income (loss) attributable to TechnipFMC plc | $ | 211.2 | $ | 376.7 | $ | (358.7 | ) |
(1) | Net of income tax (expense) benefit of $(11.5), nil and nil for the years ended December 31, 2017, 2016 and 2015, respectively. |
(2) | Net of income tax (expense) benefit of $(52.5), $(24.3) and $(4.7) for the years ended December 31, 2017, 2016 and 2015, respectively. |
(3) | Net of income tax (expense) benefit of $(11.7), $1.0 and $(9.3) for the years ended December 31, 2017, 2016 and 2015, respectively. |
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
December 31, | |||||||
(In millions, except par value data) | 2017 | 2016 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 6,737.4 | $ | 6,269.3 | |||
Trade receivables, net of allowances of $117.4 in 2017 and $85.6 in 2016 | 1,484.4 | 1,469.5 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,755.5 | 1,040.8 | |||||
Inventories, net (Note 6) | 987.0 | 334.7 | |||||
Derivative financial instruments (Note 20) | 78.3 | 47.2 | |||||
Income taxes receivable | 337.0 | 265.0 | |||||
Advances paid to suppliers | 391.3 | 711.5 | |||||
Other current assets (Note 7) | 1,206.2 | 799.2 | |||||
Total current assets | 12,977.1 | 10,937.2 | |||||
Investments in equity affiliates (Note 8) | 272.5 | 235.4 | |||||
Property, plant and equipment, net (Note 10) | 3,871.5 | 2,620.1 | |||||
Goodwill (Note 11) | 8,929.8 | 3,718.3 | |||||
Intangible assets, net (Note 11) | 1,333.8 | 173.7 | |||||
Deferred income taxes (Note 17) | 454.7 | 553.6 | |||||
Derivative financial instruments (Note 20) | 94.9 | 190.8 | |||||
Other assets | 329.4 | 250.2 | |||||
Total assets | $ | 28,263.7 | $ | 18,679.3 | |||
Liabilities and equity | |||||||
Short-term debt and current portion of long-term debt (Note 13) | $ | 77.1 | $ | 683.6 | |||
Accounts payable, trade | 3,958.7 | 3,837.7 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,314.2 | 4,141.8 | |||||
Accrued payroll | 402.2 | 307.7 | |||||
Derivative financial instruments (Note 20) | 69.0 | 183.0 | |||||
Income taxes payable | 320.3 | 317.5 | |||||
Other current liabilities (Note 12) | 1,687.9 | 1,417.6 | |||||
Total current liabilities | 9,829.4 | 10,888.9 | |||||
Long-term debt, less current portion (Note 13) | 3,777.9 | 1,869.3 | |||||
Accrued pension and other post-retirement benefits, less current portion (Note 18) | 282.0 | 160.8 | |||||
Derivative financial instruments (Note 20) | 68.1 | 227.7 | |||||
Deferred income taxes (Note 17) | 419.7 | 130.5 | |||||
Other liabilities | 477.2 | 358.0 | |||||
Commitments and contingent liabilities (Note 15) | |||||||
Stockholders’ equity (Note 16): | |||||||
Ordinary shares, $1.00 and €0.7625 par values in 2017 and 2016, respectively; 525.0 and 119.2 shares authorized in 2017 and 2016, respectively; 465.1 and 119.2 shares issued in 2017 and 2016, respectively; 2.1 and 3.2 shares canceled in 2017 and 2016, respectively; 465.1 and 118.9 shares outstanding in 2017 and 2016, respectively | 465.1 | 114.7 | |||||
Ordinary shares held in employee benefit trust, at cost; 0.1 shares in 2017 | (4.8 | ) | — | ||||
Treasury stock, at cost; 0.0 shares and 0.3 shares in 2017 and 2016, respectively | — | (44.5 | ) | ||||
Capital in excess of par value of ordinary shares | 10,483.3 | 2,683.1 | |||||
Retained earnings | 3,448.0 | 3,404.1 | |||||
Accumulated other comprehensive loss | (1,003.7 | ) | (1,101.6 | ) | |||
Total TechnipFMC plc stockholders’ equity | 13,387.9 | 5,055.8 | |||||
Noncontrolling interests | 21.5 | (11.7 | ) | ||||
Total equity | 13,409.4 | 5,044.1 | |||||
Total liabilities and equity | $ | 28,263.7 | $ | 18,679.3 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Cash provided (required) by operating activities: | |||||||||||
Net income | $ | 134.2 | $ | 371.1 | $ | 14.0 | |||||
Adjustments to reconcile net income to cash provided (required) by operating activities: | |||||||||||
Depreciation | 370.2 | 283.2 | 315.3 | ||||||||
Amortization | 244.5 | 17.5 | 23.4 | ||||||||
Employee benefit plan and share-based compensation costs | 18.7 | 27.4 | 57.2 | ||||||||
Deferred income tax provision (benefit), net | 141.6 | (172.1 | ) | (64.1 | ) | ||||||
Unrealized loss (gain) on derivative instruments and foreign exchange | (73.5 | ) | (123.2 | ) | (30.2 | ) | |||||
Impairments (Note 5) | 34.3 | 38.2 | 45.2 | ||||||||
Income from equity affiliates, net of dividends received | (37.9 | ) | (48.1 | ) | (26.3 | ) | |||||
Other | 4.7 | 161.8 | 140.1 | ||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Trade receivables, net and costs in excess of billings | 286.8 | (268.7 | ) | 232.7 | |||||||
Inventories, net | 130.9 | 172.7 | (128.3 | ) | |||||||
Accounts payable, trade | (525.8 | ) | 115.5 | 125.6 | |||||||
Billings in excess of costs | (1,111.4 | ) | (498.3 | ) | (408.2 | ) | |||||
Income taxes payable (receivable), net | (152.2 | ) | 71.7 | 8.8 | |||||||
Other assets and liabilities, net | 745.6 | 345.1 | 395.1 | ||||||||
Cash provided (required) by operating activities | 210.7 | 493.8 | 700.3 | ||||||||
Cash provided (required) by investing activities: | |||||||||||
Capital expenditures | (255.7 | ) | (312.9 | ) | (325.5 | ) | |||||
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. (Note 2) | 1,479.2 | — | — | ||||||||
Cash acquired upon consolidation of investee | — | 3,480.7 | — | ||||||||
Cash divested from deconsolidation | — | (89.1 | ) | — | |||||||
Proceeds from sale of assets | 14.4 | 39.2 | 27.1 | ||||||||
Other | 12.1 | (7.4 | ) | (36.7 | ) | ||||||
Cash provided (required) by investing activities | 1,250.0 | 3,110.5 | (335.1 | ) | |||||||
Cash provided (required) by financing activities: | |||||||||||
Net increase (decrease) in short-term debt | (106.4 | ) | 8.6 | 12.0 | |||||||
Net increase (decrease) in commercial paper | 234.9 | — | 48.8 | ||||||||
Proceeds from issuance of long-term debt | 25.7 | 644.5 | 31.5 | ||||||||
Repayments of long-term debt | (888.0 | ) | (891.2 | ) | (219.1 | ) | |||||
Purchase of treasury stock | (58.5 | ) | (186.8 | ) | — | ||||||
Dividends paid | (60.6 | ) | (111.5 | ) | (98.7 | ) | |||||
Payments related to taxes withheld on share-based compensation | (46.6 | ) | — | — | |||||||
Settlements of mandatorily redeemable financial liability | (156.5 | ) | — | — | |||||||
Other | 1.2 | 1.8 | 98.3 | ||||||||
Cash provided (required) by financing activities | (1,054.8 | ) | (534.6 | ) | (127.2 | ) | |||||
Effect of changes in foreign exchange rates on cash and cash equivalents | 62.2 | 21.6 | (320.6 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 468.1 | 3,091.3 | (82.6 | ) | |||||||
Cash and cash equivalents, beginning of year | 6,269.3 | 3,178.0 | 3,260.6 | ||||||||
Cash and cash equivalents, end of year | $ | 6,737.4 | $ | 6,269.3 | $ | 3,178.0 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest (net of interest capitalized) | $ | 50.3 | $ | 40.2 | $ | 61.0 | |||||
Cash paid for income taxes (net of refunds received) | $ | 424.7 | $ | 261.3 | $ | 188.4 |
(In millions) | Ordinary Shares | Ordinary Shares Held in Treasury and Employee Benefit Trust | Capital in Excess of Par Value of Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 110.2 | $ | (127.4 | ) | $ | 2,451.9 | $ | 3,559.1 | $ | (711.9 | ) | $ | 14.3 | $ | 5,296.2 | |||||||||||
Net income (loss) | — | — | — | 14.4 | — | (0.4 | ) | 14.0 | |||||||||||||||||||
Other comprehensive (loss) | — | — | — | — | (373.1 | ) | (2.6 | ) | (375.7 | ) | |||||||||||||||||
Net capital transactions | 4.3 | — | 276.1 | — | — | — | 280.4 | ||||||||||||||||||||
Treasury shares (Note 16) | — | 46.3 | (39.5 | ) | — | — | — | 6.8 | |||||||||||||||||||
Dividends (Note 16) | — | — | — | (300.1 | ) | — | — | (300.1 | ) | ||||||||||||||||||
Share-based compensation (Note 19) | — | — | 36.1 | — | — | — | 36.1 | ||||||||||||||||||||
Other | — | — | 0.8 | — | — | (2.1 | ) | (1.3 | ) | ||||||||||||||||||
Balance at December 31, 2015 | $ | 114.5 | $ | (81.1 | ) | $ | 2,725.4 | $ | 3,273.4 | $ | (1,085.0 | ) | $ | 9.2 | $ | 4,956.4 | |||||||||||
Net income (loss) | — | — | — | 393.3 | — | (22.2 | ) | 371.1 | |||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (16.6 | ) | 1.3 | (15.3 | ) | ||||||||||||||||||
Net capital transactions | 0.2 | — | (35.1 | ) | — | — | — | (34.9 | ) | ||||||||||||||||||
Treasury shares (Note 16) | — | 36.6 | (31.1 | ) | — | — | — | 5.5 | |||||||||||||||||||
Dividends (Note 16) | — | — | — | (262.6 | ) | — | — | (262.6 | ) | ||||||||||||||||||
Share-based compensation (Note 19) | — | — | 22.0 | — | — | — | 22.0 | ||||||||||||||||||||
Other | — | — | 1.9 | — | — | — | 1.9 | ||||||||||||||||||||
Balance at December 31, 2016 | $ | 114.7 | $ | (44.5 | ) | $ | 2,683.1 | $ | 3,404.1 | $ | (1,101.6 | ) | $ | (11.7 | ) | $ | 5,044.1 | ||||||||||
Net income | — | — | — | 113.3 | — | 20.9 | 134.2 | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | 97.9 | 0.4 | 98.3 | ||||||||||||||||||||
Issuance of ordinary shares due to the merger of FMC Technologies and Technip | 351.9 | (6.6 | ) | 7,825.4 | — | — | — | 8,170.7 | |||||||||||||||||||
Cancellation of treasury shares due to the merger of FMC Technologies and Technip | — | 44.5 | (23.3 | ) | — | — | — | 21.2 | |||||||||||||||||||
Cancellation of treasury shares (Note 16) | (2.1 | ) | — | (47.6 | ) | (8.8 | ) | — | — | (58.5 | ) | ||||||||||||||||
Net sales of ordinary shares for employee benefit trust | — | 1.8 | — | — | — | — | 1.8 | ||||||||||||||||||||
Issuance of ordinary shares | 0.6 | — | 0.6 | — | — | — | 1.2 | ||||||||||||||||||||
Dividends (Note 16) | — | — | — | (60.6 | ) | — | — | (60.6 | ) | ||||||||||||||||||
Share-based compensation (Note 19) | — | — | 44.4 | — | — | — | 44.4 | ||||||||||||||||||||
Other | — | 0.7 | — | — | 11.9 | 12.6 | |||||||||||||||||||||
Balance at December 31, 2017 | $ | 465.1 | $ | (4.8 | ) | $ | 10,483.3 | $ | 3,448.0 | $ | (1,003.7 | ) | $ | 21.5 | $ | 13,409.4 |
• | Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. |
• | Level 2: Observable inputs other than quoted prices included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |
• | Level 3: Unobservable inputs reflecting management’s own assumptions about the assumptions market participants would use in pricing the asset or liability. |
(In millions, except per share data) | ||||
Total FMC Technologies, Inc. shares subject to exchange as of January 16, 2017 | 228.9 | |||
FMC Technologies, Inc. exchange ratio (1) | 0.5 | |||
Shares of TechnipFMC issued | 114.4 | |||
Value per share of Technip as of January 16, 2017 (2) | $ | 71.4 | ||
Total purchase consideration | $ | 8,170.7 |
(1) | As the calculation is deemed to reflect a share capital increase of the accounting acquirer, the FMC Technologies exchange ratio (1 share of TechnipFMC for 1 share of FMC Technologies as provided in the business combination agreement) is adjusted by dividing the FMC Technologies exchange ratio by the Technip exchange ratio (2 shares of TechnipFMC for 1 share of Technip as provided in the business combination agreement), i.e., 1 ⁄ 2 = 0.5 in order to reflect the number of shares of Technip that FMC Technologies stockholders would have received if Technip was to have issued its own shares. |
(2) | Closing price of Technip’s ordinary shares on Euronext Paris on January 16, 2017 in Euro converted at the Euro to U.S. dollar exchange rate of $1.0594 on January 16, 2017. |
(In millions) | ||||
Assets: | ||||
Cash | $ | 1,479.2 | ||
Accounts receivable | 647.8 | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | 599.6 | |||
Inventory | 764.8 | |||
Income taxes receivable | 139.2 | |||
Other current assets | 282.2 | |||
Property, plant and equipment | 1,293.3 | |||
Intangible assets | 1,390.3 | |||
Other long-term assets | 167.3 | |||
Total identifiable assets acquired | 6,763.7 | |||
Liabilities: | ||||
Short-term and current portion of long-term debt | 319.5 | |||
Accounts payable, trade | 386.0 | |||
Billings in excess of costs and estimated earnings on uncompleted contracts | 454.0 | |||
Income taxes payable | 92.1 | |||
Other current liabilities | 524.3 | |||
Long-term debt, less current portion | 1,444.2 | |||
Accrued pension and other post-retirement benefits, less current portion | 195.5 | |||
Deferred income taxes | 199.7 | |||
Other long-term liabilities | 138.7 | |||
Total liabilities assumed | 3,754.0 | |||
Net identifiable assets acquired | 3,009.7 | |||
Goodwill | 5,161.0 | |||
Net assets acquired | $ | 8,170.7 |
(In millions) | Allocated Goodwill | ||
Subsea | $ | 2,527.7 | |
Onshore/Offshore | 1,635.5 | ||
Surface Technologies | 997.8 | ||
Total | $ | 5,161.0 |
(In millions, except estimated useful lives) | Fair Value | Estimated Useful Lives | |||
Acquired technology | $ | 240.0 | 10 | ||
Backlog | 175.0 | 2 | |||
Customer relationships | 285.0 | 10 | |||
Tradenames | 635.0 | 20 | |||
Software | 55.3 | Various | |||
Total identifiable intangible assets acquired | $ | 1,390.3 |
Unaudited | |||||||
Year Ended December 31, | |||||||
(In millions) | 2017 Pro Forma | 2016 Pro Forma | |||||
Revenue | $ | 15,169.8 | $ | 13,727.9 | |||
Net income attributable to TechnipFMC adjusted for dilutive effects | $ | 28.5 | $ | 291.8 | |||
Diluted earnings per share | $ | 0.06 | $ | 0.62 |
Year Ended December 31, | |||||||||||
(In millions, except per share data) | 2017 | 2016 | 2015 | ||||||||
Net income attributable to TechnipFMC plc | $ | 113.3 | $ | 393.3 | $ | 14.4 | |||||
After-tax interest expense related to dilutive shares | — | 1.5 | 2.5 | ||||||||
Net income attributable to TechnipFMC plc adjusted for dilutive effects | 113.3 | 394.8 | 16.9 | ||||||||
Weighted average number of shares outstanding | 466.7 | 119.4 | 114.9 | ||||||||
Dilutive effect of restricted stock units | 0.2 | — | — | ||||||||
Dilutive effect of stock options | — | — | — | ||||||||
Dilutive effect of performance shares | 1.4 | 0.5 | 0.6 | ||||||||
Dilutive effect of convertible bonds | — | 5.2 | 11.8 | ||||||||
Total shares and dilutive securities | 468.3 | 125.1 | 127.3 | ||||||||
Basic earnings per share attributable to TechnipFMC plc | $ | 0.24 | $ | 3.29 | $ | 0.13 | |||||
Diluted earnings per share attributable to TechnipFMC plc | $ | 0.24 | $ | 3.16 | $ | 0.13 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Impairment expense: | |||||||||||
Subsea | $ | 11.5 | $ | 23.0 | $ | 42.9 | |||||
Onshore/Offshore | — | 14.6 | — | ||||||||
Surface Technologies | 10.2 | — | — | ||||||||
Corporate and other | 12.6 | 0.6 | 2.3 | ||||||||
Total impairment expense | 34.3 | 38.2 | 45.2 | ||||||||
Restructuring and other expense: | |||||||||||
Subsea | $ | 88.4 | $ | 58.7 | $ | 34.0 | |||||
Onshore/Offshore | 27.0 | 214.4 | 342.2 | ||||||||
Surface Technologies | 9.0 | — | — | ||||||||
Corporate and other | 32.8 | 31.7 | 16.7 | ||||||||
Total restructuring and other expense | 157.2 | 304.8 | 392.9 | ||||||||
Total impairment, restructuring and other expense | $ | 191.5 | $ | 343.0 | $ | 438.1 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Raw materials | $ | 271.4 | $ | 240.4 | |||
Work in process | 130.2 | 36.0 | |||||
Finished goods | 585.4 | 58.3 | |||||
Inventory, net | $ | 987.0 | $ | 334.7 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Value-added tax receivables | $ | 532.5 | $ | 319.4 | |||
Other tax receivables | 155.8 | 124.9 | |||||
Prepaid expenses | 136.2 | 106.4 | |||||
Held-to-maturity investments (short-term) | 60.0 | — | |||||
Assets held for sale | 50.2 | 2.2 | |||||
Available-for-sale securities (short-term) | 9.9 | — | |||||
Other | 261.6 | 246.3 | |||||
Other current assets | $ | 1,206.2 | $ | 799.2 |
December 31, 2017 | ||||
Percentage Owned | Carrying Value | |||
Technip Odebrecht PLSV CV | 50.0 | % | 111.4 | |
Dofcon Brasil AS | 50.0 | % | 74.1 | |
Serimax Holdings SAS | 20.0 | % | 25.1 | |
FSTP Brasil Ltda | 25.0 | % | 21.5 | |
Other | 40.4 | |||
Investments in equity affiliates | 272.5 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Subsea | $ | 55.3 | $ | 35.0 | $ | 21.2 | |||||
Onshore/Offshore | 0.3 | 82.7 | 29.8 | ||||||||
Surface Technologies | — | — | — | ||||||||
Income from equity affiliates | $ | 55.6 | $ | 117.7 | $ | 51.0 |
(In millions) | 2016 (1) | 2015 | |||||
As of December 31 | |||||||
Current assets | $ | 619.2 | $ | 4,769.3 | |||
Noncurrent assets | 2,176.1 | 1,587.2 | |||||
Current liabilities | 796.9 | 4,853.7 | |||||
Noncurrent liabilities | 1,355.0 | 925.6 | |||||
Year ended December 31 | |||||||
Revenues | $ | 6,782.9 | $ | 5,426.1 | |||
Gross profit | 461.0 | 721.8 | |||||
Net income (loss) | (348.4 | ) | 561.1 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Trade receivables | $ | 98.4 | $ | 220.2 | |||
Trade payables | (121.8 | ) | (200.0 | ) | |||
Net trade receivables/(payables) | $ | (23.4 | ) | $ | 20.2 | ||
Note receivables | $ | 140.9 | $ | 153.9 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Revenue | $ | 238.1 | $ | 284.5 | $ | 413.5 | |||||
Expenses | $ | (141.4 | ) | $ | (105.5 | ) | $ | (53.4 | ) |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Land and land improvements | $ | 105.2 | $ | 17.3 | |||
Buildings | 691.2 | 337.5 | |||||
Vessels | 2,246.0 | 1,921.7 | |||||
Machinery and equipment | 1,892.2 | 1,056.6 | |||||
Office fixtures and furniture | 350.4 | 292.0 | |||||
Construction in process | 136.7 | 310.5 | |||||
Other | 397.7 | 376.3 | |||||
5,819.4 | 4,311.9 | ||||||
Accumulated depreciation | (1,947.9 | ) | (1,691.8 | ) | |||
Property, plant and equipment, net | $ | 3,871.5 | $ | 2,620.1 |
(In millions) | Subsea | Onshore/Offshore | Surface Technologies | Total | |||||||||||
December 31, 2014 | $ | 3,232.0 | $ | 882.2 | $ | — | $ | 4,114.2 | |||||||
Additions due to business combinations | 41.9 | — | — | 41.9 | |||||||||||
Impairment | — | — | — | — | |||||||||||
Translation | (296.5 | ) | (73.1 | ) | — | (369.6 | ) | ||||||||
December 31, 2015 | 2,977.4 | 809.1 | — | 3,786.5 | |||||||||||
Additions due to business combinations | — | — | — | — | |||||||||||
Impairment | — | — | — | — | |||||||||||
Translation | (46.3 | ) | (21.9 | ) | — | (68.2 | ) | ||||||||
December 31, 2016 | 2,931.1 | 787.2 | — | 3,718.3 | |||||||||||
Additions due to business combinations | 2,532.6 | 1,635.5 | 997.8 | 5,165.9 | |||||||||||
Impairment | — | — | — | — | |||||||||||
Translation | 6.7 | 38.9 | — | 45.6 | |||||||||||
December 31, 2017 | $ | 5,470.4 | $ | 2,461.6 | $ | 997.8 | $ | 8,929.8 |
December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
(In millions) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Acquired technology | $ | 240.0 | $ | 25.0 | $ | — | $ | — | |||||||
Backlog | 175.0 | 118.0 | — | — | |||||||||||
Customer relationships | 285.0 | 29.0 | — | — | |||||||||||
Licenses, patents and trademarks | 810.1 | 157.7 | 167.3 | 120.9 | |||||||||||
Software | 237.9 | 145.5 | 154.7 | 107.4 | |||||||||||
Other | 72.7 | 11.7 | 97.6 | 17.6 | |||||||||||
Total intangible assets | $ | 1,820.7 | $ | 486.9 | $ | 419.6 | $ | 245.9 |
(In millions) | December 31, 2017 | December 31, 2016 | |||||
Warranty accruals on completed contracts | $ | 321.3 | $ | 271.9 | |||
Contingencies related to completed contracts | 214.9 | 370.1 | |||||
Other taxes payable | 204.4 | 143.5 | |||||
Social security liability | 145.0 | 66.3 | |||||
Compensation accrual | 123.5 | 27.5 | |||||
Redeemable financial liability | 69.7 | 33.7 | |||||
Liabilities held for sale | 13.7 | — | |||||
Other accrued liabilities | 595.4 | 504.6 | |||||
Total other current liabilities | $ | 1,687.9 | $ | 1,417.6 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Convertible bonds due 2017 | $ | — | $ | 524.5 | |||
Bank borrowings | 48.9 | 138.8 | |||||
Other | 28.2 | 20.3 | |||||
Total short-term debt and current portion of long-term debt | $ | 77.1 | $ | 683.6 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Revolving credit facility | $ | — | $ | — | |||
Bilateral credit facilities | — | — | |||||
Commercial paper (1) | 1,450.4 | 210.8 | |||||
Synthetic bonds due 2021 | 502.4 | 431.8 | |||||
Convertible bonds due 2017 | — | 524.5 | |||||
3.45% Senior Notes due 2022 | 500.0 | — | |||||
5.00% Notes due 2020 | 239.9 | 210.8 | |||||
3.40% Notes due 2022 | 179.9 | 158.1 | |||||
3.15% Notes due 2023 | 155.9 | 137.0 | |||||
3.15% Notes due 2023 | 149.9 | 131.8 | |||||
4.00% Notes due 2027 | 89.9 | 79.1 | |||||
4.00% Notes due 2032 | 119.9 | 105.4 | |||||
3.75% Notes due 2033 | 119.9 | 105.4 | |||||
Bank borrowings | 332.5 | 452.1 | |||||
Other | 28.2 | 20.3 | |||||
Unamortized debt issuance costs and discounts | (13.8 | ) | (14.2 | ) | |||
Total debt | 3,855.0 | 2,552.9 | |||||
Less: current borrowings | (77.1 | ) | (683.6 | ) | |||
Long-term debt | $ | 3,777.9 | $ | 1,869.3 |
(1) | At December 31, 2017 and 2016, committed credit available under our revolving credit facility provided the ability to refinance our commercial paper obligations on a long-term basis. |
Payments Due by Period | |||||||||||||||||||
(In millions) | Total payments | Less than 1 year | 1-3 years | 3-5 years | After 5 years | ||||||||||||||
Total debt | $ | 3,855.0 | $ | 77.1 | $ | 1,972.9 | $ | 1,179.0 | $ | 626.0 |
• | U.S. dollar-denominated loans bear interest, at the Borrowers’ option, at a base rate or an adjusted rate linked to the London interbank offered rate (“Adjusted LIBOR”); |
• | sterling-denominated loans bear interest at Adjusted LIBOR; and |
• | euro-denominated loans bear interest at the Euro interbank offered rate (“EURIBOR”). |
• | two credit facilities of €80.0 million each expiring in May 2019; |
• | a credit facility of €80.0 million expiring in June 2019; and |
• | a credit facility of €100.0 million expiring in May 2021. |
(In millions) | |||
2018 | $ | 347.2 | |
2019 | 290.2 | ||
2020 | 266.2 | ||
2021 | 178.2 | ||
2022 | 124.7 | ||
Thereafter | 577.1 | ||
Total | 1,783.6 | ||
Less income from sub-leases | 6.3 | ||
Net minimum operating lease payments | $ | 1,777.3 |
(In millions) | December 31, 2017 | ||
Financial guarantees (1) | $ | 933.3 | |
Performance guarantees (2) | 3,670.3 | ||
Maximum potential undiscounted payments | $ | 4,603.6 |
(1) | Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party. These tend to be drawn down only if there is a failure to fulfill our financial obligations. |
(2) | Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a nonfinancial obligating agreement. Events that trigger payment are performance related, such as failure to ship a product or provide a service. |
(Number of shares in millions) | Ordinary Shares Issued | Ordinary Shares Held in Employee Benefit Trust | Treasury Stock | |||||
December 31, 2014 | 113.9 | — | 1.4 | |||||
Stock awards | 0.6 | — | (0.5 | ) | ||||
Treasury stock purchases | — | — | — | |||||
Capital increase reserved for employees | 1.9 | — | — | |||||
Shares acquired pursuant to liquidity contract | — | — | 1.3 | |||||
Shares sold pursuant to liquidity contract | — | — | (1.4 | ) | ||||
Dividend payment in shares | 2.6 | — | — | |||||
December 31, 2015 | 119.0 | — | 0.8 | |||||
Stock awards | 0.2 | — | (0.4 | ) | ||||
Treasury stock purchases | — | — | 3.2 | |||||
Dividend payment in shares | 3.2 | — | — | |||||
Shares acquired pursuant to liquidity contract | — | — | 1.3 | |||||
Shares sold pursuant to liquidity contract | — | — | (1.4 | ) | ||||
Cancellation of treasury shares | (3.2 | ) | — | (3.2 | ) | |||
December 31, 2016 | 119.2 | — | 0.3 | |||||
Net capital increases due to the merger of FMC Technologies and Technip | 347.4 | — | — | |||||
Stock awards | 0.6 | — | — | |||||
Treasury stock cancellation due to the merger of FMC Technologies and Technip | — | — | (0.3 | ) | ||||
Treasury stock purchases | — | — | 2.1 | |||||
Treasury stock cancellations | (2.1 | ) | — | (2.1 | ) | |||
Net stock purchased for employee benefit trust | — | 0.1 | — | |||||
December 31, 2017 | 465.1 | 0.1 | — |
(In millions) | Foreign Currency Translation | Hedging | Defined Pension and Other Post-Retirement Benefits | Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc | Accumulated Other Comprehensive Loss Attributable to Non-controlling interest | ||||||||||||||
December 31, 2015 | $ | (855.3 | ) | $ | (181.5 | ) | $ | (48.2 | ) | $ | (1,085.0 | ) | $ | (1.1 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax | (71.8 | ) | (65.7 | ) | 7.0 | (130.5 | ) | 1.3 | |||||||||||
Reclassification adjustment for net (gains) losses included in net income, net of tax | — | 120.1 | (6.2 | ) | 113.9 | — | |||||||||||||
Other comprehensive income (loss), net of tax | (71.8 | ) | 54.4 | 0.8 | (16.6 | ) | 1.3 | ||||||||||||
December 31, 2016 | (927.1 | ) | (127.1 | ) | (47.4 | ) | (1,101.6 | ) | 0.2 | ||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | (87.5 | ) | 53.7 | 43.2 | 9.4 | 0.4 | |||||||||||||
Reclassification adjustment for net (gains) losses included in net income, net of tax | — | 101.2 | (12.7 | ) | 88.5 | — | |||||||||||||
Other comprehensive income (loss), net of tax | (87.5 | ) | 154.9 | 30.5 | 97.9 | 0.4 | |||||||||||||
December 31, 2017 | $ | (1,014.6 | ) | $ | 27.8 | $ | (16.9 | ) | $ | (1,003.7 | ) | $ | 0.6 |
Year Ended | ||||||||||||||
(In millions) | December 31, 2017 | December 31, 2016 | December 31, 2015 | |||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified out of Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statement of Income | ||||||||||||
Gains (losses) on hedging instruments | ||||||||||||||
Foreign exchange contracts: | $ | (39.3 | ) | $ | — | $ | — | Revenue | ||||||
5.3 | — | — | Costs of sales | |||||||||||
0.8 | — | — | Selling, general and administrative expense | |||||||||||
(102.2 | ) | (165.7 | ) | (93.6 | ) | Other (expense), net | ||||||||
(135.4 | ) | (165.7 | ) | (93.6 | ) | Income before income taxes | ||||||||
(34.2 | ) | (45.6 | ) | (25.8 | ) | Provision (benefit) for income taxes | ||||||||
$ | (101.2 | ) | $ | (120.1 | ) | $ | (67.8 | ) | Net income | |||||
Defined pension and other post-retirement benefits | ||||||||||||||
Settlements and curtailments | $ | 25.3 | $ | 10.7 | $ | — | (a) | |||||||
Amortization of actuarial gain (loss) | (2.5 | ) | (1.0 | ) | (3.7 | ) | (a) | |||||||
Amortization of prior service credit (cost) | (1.0 | ) | (0.7 | ) | (0.7 | ) | (a) | |||||||
21.8 | 9.0 | (4.4 | ) | Income before income taxes | ||||||||||
9.1 | 2.8 | (1.3 | ) | Provision (benefit) for income taxes | ||||||||||
$ | 12.7 | $ | 6.2 | $ | (3.1 | ) | Net income |
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 18 for additional details). |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
United States | $ | 284.3 | $ | 154.3 | $ | 152.0 | |||||
Outside United States | 395.4 | 397.1 | (1.5 | ) | |||||||
Income before income taxes | $ | 679.7 | $ | 551.4 | $ | 150.5 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
United States | $ | 30.2 | $ | 54.1 | $ | 10.8 | |||||
Outside United States | 373.7 | 298.3 | 189.8 | ||||||||
Total current | 403.9 | 352.4 | 200.6 | ||||||||
Deferred: | |||||||||||
United States | 71.4 | (7.2 | ) | 46.6 | |||||||
Outside United States | 70.2 | (164.9 | ) | (110.7 | ) | ||||||
Total deferred | 141.6 | (172.1 | ) | (64.1 | ) | ||||||
Provision for income taxes | $ | 545.5 | $ | 180.3 | $ | 136.5 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Deferred tax assets attributable to: | |||||||
Accrued expenses | $ | 155.2 | $ | 49.3 | |||
Non-deductible interest | 85.9 | — | |||||
Foreign tax credit carryforwards | 34.9 | — | |||||
Net operating loss carryforwards | 390.7 | 225.9 | |||||
Inventories | 13.4 | — | |||||
Research and development credit | 7.5 | — | |||||
Provisions for pensions and other long-term employee benefits | 86.4 | 56.2 | |||||
Contingencies related to contracts | 111.3 | 188.3 | |||||
Other contingencies | 33.5 | 63.1 | |||||
Fair value losses/gains | 12.4 | 103.1 | |||||
Other | 11.1 | 15.1 | |||||
Deferred tax assets | 942.3 | 701.0 | |||||
Valuation allowance | (430.0 | ) | (172.7 | ) | |||
Deferred tax assets, net of valuation allowance | 512.3 | 528.3 | |||||
Deferred tax liabilities attributable to: | |||||||
Revenue in excess of billings on contracts accounted for under the percentage of completion method | 41.2 | — | |||||
U.S. tax on foreign subsidiaries’ undistributed earnings not indefinitely reinvested | 4.9 | — | |||||
Foreign exchange | 21.5 | — | |||||
Property, plant and equipment, intangibles and other assets | 403.3 | 101.1 | |||||
Margin recognition on construction contracts | 6.4 | 4.1 | |||||
Deferred tax liabilities | 477.3 | 105.2 | |||||
Net deferred tax assets | $ | 35.0 | $ | 423.1 |
(In millions) | Federal, State and Foreign Tax | Accrued Interest and Penalties | Total Gross Unrecognized Income Tax Benefits | ||||||||
Balance at December 31, 2015 | $ | — | $ | — | $ | — | |||||
Additions for tax positions related to prior years | — | — | — | ||||||||
Additions for tax positions related to current year | 16.6 | — | 16.6 | ||||||||
Reductions for tax positions due to settlements | — | — | — | ||||||||
Balance at December 31, 2016 | $ | 16.6 | $ | — | $ | 16.6 | |||||
Reductions for tax positions related to prior years | (13.6 | ) | — | (13.6 | ) | ||||||
Additions for tax positions related to current year | 39.5 | 3.8 | 43.3 | ||||||||
Reductions for tax positions due to settlements | (0.2 | ) | — | (0.2 | ) | ||||||
Additions for tax positions related to purchase accounting | 48.1 | 2.1 | 50.2 | ||||||||
Balance at December 31, 2017 | $ | 90.4 | $ | 5.9 | $ | 96.3 |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Statutory income tax rate | 19.3 | % | 34.4 | % | 38.0 | % | ||
Net difference resulting from: | ||||||||
Foreign earnings subject to different tax rates | 18.2 | % | (18.5 | )% | 28.4 | % | ||
Net change in unrecognized tax benefits | 4.3 | % | 3.0 | % | — | % | ||
Adjustments on prior year taxes | (4.4 | )% | 2.4 | % | (11.0 | )% | ||
Change in valuation allowance | 19.3 | % | 13.1 | % | 36.9 | % | ||
Deferred tax asset/liability revaluation for tax rate change | 1.4 | % | (0.8 | )% | 1.8 | % | ||
U.S. transition tax | 17.1 | % | — | % | — | % | ||
Other | 5.1 | % | (0.9 | )% | (3.5 | )% | ||
Effective income tax rate | 80.3 | % | 32.7 | % | 90.6 | % |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Accumulated benefit obligation | $ | 659.8 | $ | 769.9 | $ | — | $ | 360.9 | |||||||||||||||
Projected benefit obligation at January 1 | $ | — | $ | 399.6 | $ | — | $ | 457.2 | $ | 0.9 | $ | 0.9 | |||||||||||
Service cost | 10.3 | 21.0 | — | 11.7 | — | — | |||||||||||||||||
Interest cost | 26.7 | 19.6 | — | 10.9 | 0.3 | — | |||||||||||||||||
Actuarial (gain) loss | 56.2 | (13.5 | ) | — | 39.3 | 0.8 | — | ||||||||||||||||
Amendments | 0.2 | — | — | — | — | — | |||||||||||||||||
Curtailments | (67.9 | ) | (2.8 | ) | — | (8.2 | ) | — | — | ||||||||||||||
Settlements | — | (13.5 | ) | — | — | — | — | ||||||||||||||||
Foreign currency exchange rate changes | — | 68.9 | — | (31.1 | ) | — | — | ||||||||||||||||
Plan participants’ contributions | — | 1.4 | — | 0.1 | — | — | |||||||||||||||||
Benefits paid | (27.5 | ) | (27.6 | ) | — | (24.0 | ) | (0.6 | ) | — | |||||||||||||
Acquisition/Business Combination/Divestiture | 661.9 | 432.3 | — | (52.2 | ) | 7.7 | — | ||||||||||||||||
Other | (0.1 | ) | 12.7 | — | (4.1 | ) | 0.9 | — | |||||||||||||||
Projected benefit obligation at December 31 | 659.8 | 898.1 | — | 399.6 | 10.0 | 0.9 | |||||||||||||||||
Fair value of plan assets at January 1 | — | 229.7 | — | 236.0 | — | — | |||||||||||||||||
Actual return on plan assets | 60.4 | 63.3 | — | 29.0 | — | — | |||||||||||||||||
Company contributions | — | 19.1 | — | 0.4 | — | — | |||||||||||||||||
Foreign currency exchange rate changes | — | 50.4 | — | (26.1 | ) | — | — | ||||||||||||||||
Settlements | — | (7.0 | ) | — | — | — | — | ||||||||||||||||
Plan participants’ contributions | — | 1.4 | — | 0.1 | — | — | |||||||||||||||||
Benefits paid | (24.8 | ) | (21.5 | ) | — | (9.7 | ) | — | — | ||||||||||||||
Acquisition/Business Combination/Divestiture | 540.8 | 361.4 | — | — | — | — | |||||||||||||||||
Other | — | 2.4 | — | — | — | — | |||||||||||||||||
Fair value of plan assets at December 31 | 576.4 | 699.2 | — | 229.7 | — | — | |||||||||||||||||
Funded status of the plans (liability) at December 31 | $ | (83.4 | ) | $ | (198.9 | ) | $ | — | $ | (169.9 | ) | $ | (10.0 | ) | $ | (0.9 | ) |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Other assets | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Current portion of accrued pension and other post-retirement benefits | $ | (5.4 | ) | $ | (4.1 | ) | $ | — | $ | (10.0 | ) | $ | (0.7 | ) | $ | — | |||||||
Accrued pension and other post-retirement benefits, net of current portion | (78.0 | ) | (194.8 | ) | — | (159.9 | ) | (9.3 | ) | (0.9 | ) | ||||||||||||
Funded status recognized in the consolidated balance sheets at December 31 | $ | (83.4 | ) | $ | (198.9 | ) | $ | — | $ | (169.9 | ) | $ | (10.0 | ) | $ | (0.9 | ) |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Pre-tax amounts recognized in accumulated other comprehensive (income) loss: | |||||||||||||||||||||||
Unrecognized actuarial (gain) loss | $ | 0.1 | $ | 21.2 | $ | — | $ | 63.7 | $ | 0.8 | $ | 0.1 | |||||||||||
Unrecognized prior service (credit) cost | 0.2 | 5.5 | — | 5.7 | — | — | |||||||||||||||||
Unrecognized transition asset | — | — | — | — | — | — | |||||||||||||||||
Accumulated other comprehensive (income) loss at December 31 | $ | 0.3 | $ | 26.7 | $ | — | $ | 69.4 | $ | 0.8 | $ | 0.1 |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Plans with underfunded or non-funded projected benefit obligation: | |||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 659.8 | $ | 744.3 | $ | — | $ | 399.6 | $ | 9.9 | $ | 0.8 | |||||||||||
Aggregate fair value of plan assets | $ | 576.4 | $ | 558.0 | $ | — | $ | 229.7 | $ | — | $ | — |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Plans with underfunded or non-funded accumulated benefit obligation: | |||||||||||||||||||||||
Aggregate accumulated benefit obligation | $ | 659.8 | $ | 212.5 | $ | — | $ | 360.9 | $ | — | $ | — | |||||||||||
Aggregate fair value of plan assets | $ | 576.4 | $ | 82.2 | $ | — | $ | 229.7 | $ | — | $ | — |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||||||||||||
Components of net periodic benefit cost (income): | |||||||||||||||||||||||||||||||||||
Service cost | $ | 10.3 | $ | 21.0 | $ | — | $ | 11.7 | $ | — | $ | 13.7 | $ | — | $ | — | $ | — | |||||||||||||||||
Interest cost | 26.7 | 19.6 | — | 10.9 | — | 11.6 | 0.3 | — | — | ||||||||||||||||||||||||||
Expected return on plan assets | (45.5 | ) | (36.3 | ) | — | (8.2 | ) | — | (8.6 | ) | — | — | — | ||||||||||||||||||||||
Settlement cost | — | 1.5 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Curtailment benefit | (26.8 | ) | — | — | (10.7 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of net actuarial loss (gain) | — | 2.5 | — | 1.0 | — | 3.7 | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service cost (credit) | — | 1.0 | — | 0.7 | — | 0.7 | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | (35.3 | ) | $ | 9.3 | $ | — | $ | 5.4 | $ | — | $ | 21.1 | $ | 0.3 | $ | — | $ | — |
Pensions | Other Post-retirement Benefits | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||
(In millions) | U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net actuarial gain (loss) arising during period | $ | 26.7 | $ | 43.3 | $ | — | $ | (10.5 | ) | $ | — | $ | 18.4 | $ | (0.8 | ) | $ | — | $ | — | |||||||||||||||
Prior service (cost) credit arising during period | (0.2 | ) | 0.1 | — | 0.1 | — | 0.3 | — | — | — | |||||||||||||||||||||||||
Settlements and curtailments | (26.8 | ) | 1.5 | — | (10.7 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of net actuarial loss (gain) | — | 2.5 | — | 1.0 | — | 3.7 | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service cost (credit) | — | 1.0 | — | 0.7 | — | 0.7 | — | — | — | ||||||||||||||||||||||||||
Other | — | (5.1 | ) | — | 17.6 | — | 8.1 | — | — | — | |||||||||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | (0.3 | ) | $ | 43.3 | $ | — | $ | (1.8 | ) | $ | — | $ | 31.2 | $ | (0.8 | ) | $ | — | $ | — |
Pensions | Other Post-retirement Benefits | ||||||||||
(In millions) | U.S. | Int’l | |||||||||
Net actuarial losses (gains) | $ | — | $ | 1.2 | $ | — | |||||
Prior service cost (credit) | $ | — | $ | 1.1 | $ | — |
Pensions | Other Post-retirement Benefits | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
U.S. | Int’l | U.S. | Int’l | |||||||||||||
Discount rate | 3.70 | % | 2.42 | % | N/A | 2.15 | % | 4.33 | % | 1.70 | % | |||||
Rate of compensation increase | — | % | 2.37 | % | N/A | 2.80 | % | 4.00 | % | N/A |
Pensions | Other Post-retirement Benefits | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||
U.S. | Int’l | U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||
Discount rate | 4.30 | % | 2.37 | % | N/A | 2.80 | % | N/A | 2.50 | % | 4.05 | % | 2.20 | % | 1.90 | % | ||||||||
Rate of compensation increase | 4.00 | % | 2.39 | % | N/A | 2.30 | % | N/A | 2.60 | % | 4.00 | % | 3.00 | % | 3.00 | % | ||||||||
Expected rate of return on plan assets | 9.00 | % | 6.24 | % | N/A | 2.80 | % | N/A | 3.60 | % | N/A | N/A | N/A |
• | Cash is valued at cost, which approximates fair value. |
• | Equity securities are comprised of common stock and preferred stock. The fair values of equity securities are valued at the closing price reported on the active market on which the securities are traded. |
• | Fair values of registered investment companies and common/collective trusts are valued based on quoted market prices, which represent the net asset value (“NAV”) of shares held. Registered investment companies primarily include investments in emerging market bonds. Common/collective trusts primarily includes money market instruments with short maturities. |
• | Insurance contracts are valued at book value, which approximates fair value, and is calculated using the prior-year balance plus or minus investment returns and changes in cash flows. |
• | The fair values of hedge funds are valued using the NAV as determined by the administrator or custodian of the fund. The funds primarily invest in U.S. and international equities, debt securities and other hedge funds. |
• | The fair values of limited partnerships are valued using the NAV as determined by the administrator or custodian of the fund. The partnerships primarily invest in U.S. and international equities and debt securities. |
• | Real estate and other investments primarily consists of real estate investment trusts and other investments. These investments are measured at quoted market prices, which represent the NAV of the securities held in such funds at year end. |
U.S. | International | ||||||||||||||||||||||||||||||
December 31, 2017 (In millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 41.2 | $ | 41.2 | $ | — | $ | — | $ | 4.8 | $ | 4.8 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
U.S. companies | 131.7 | 131.7 | — | — | 106.9 | 106.9 | — | — | |||||||||||||||||||||||
International companies | 33.7 | 33.7 | — | — | 216.7 | 216.7 | — | — | |||||||||||||||||||||||
Registered investment companies (1) | 33.6 | — | — | — | 72.6 | — | — | — | |||||||||||||||||||||||
Common/collective trusts (1) | 31.2 | — | — | — | 13.0 | — | — | — | |||||||||||||||||||||||
Insurance contracts | — | — | — | — | 208.2 | — | 208.2 | — | |||||||||||||||||||||||
Hedge funds (1) | 194.3 | — | — | — | 74.7 | — | — | — | |||||||||||||||||||||||
Limited partnerships (1) | 109.7 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate and other investments | 0.8 | 0.8 | — | — | 1.5 | 1.5 | — | — | |||||||||||||||||||||||
Total assets | $ | 576.2 | $ | 207.4 | $ | — | $ | — | $ | 698.4 | $ | 329.9 | $ | 208.2 | $ | — | |||||||||||||||
December 31, 2016 (In millions) | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | — | $ | 2.1 | $ | 2.1 | $ | — | $ | — | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
U.S. companies | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
International companies | — | — | — | — | 37.2 | 37.2 | — | — | |||||||||||||||||||||||
Registered investment companies (1) | — | — | — | — | 52.7 | — | — | — | |||||||||||||||||||||||
Common/collective trusts (1) | — | — | — | — | 10.6 | — | — | — | |||||||||||||||||||||||
Insurance contracts | — | — | — | — | 112.2 | — | 112.2 | — | |||||||||||||||||||||||
Hedge funds (1) | — | — | — | — | 12.3 | — | — | — | |||||||||||||||||||||||
Limited partnerships (1) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Real estate and other investments | — | — | — | — | 2.5 | 2.5 | — | — | |||||||||||||||||||||||
Total assets | $ | — | $ | — | $ | — | $ | — | $ | 229.6 | $ | 41.8 | $ | 112.2 | $ | — |
(1) | Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. |
Pensions | Other Post-retirement Benefits | ||||||||||
(In millions) | U.S. | International | |||||||||
2018 | $ | 33.4 | $ | 28.2 | $ | 0.7 | |||||
2019 | 34.1 | 30.9 | 0.7 | ||||||||
2020 | 34.7 | 33.3 | 0.7 | ||||||||
2021 | 35.5 | 34.4 | 0.7 | ||||||||
2022 | 34.9 | 35.5 | 0.7 | ||||||||
2023-2027 | 174.3 | 197.5 | 2.9 |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Share-based compensation expense | $ | 44.4 | $ | 22.0 | $ | 36.1 | |||||
Income tax benefits related to share-based compensation expense | $ | 12.0 | $ | 5.9 | $ | 9.7 |
December 31, 2017 | ||||
Share-based compensation expense not yet recognized (in millions) | $ | 77.9 | ||
Weighted-average recognition period (in years) | 2.2 |
(Shares in thousands) | Shares | Weighted-Average Grant Date Fair Value | ||||
Nonvested at December 31, 2016 | — | $ | — | |||
Assumed in the FMC Technologies Merger | 213.1 | $ | 35.85 | |||
Granted | 1,516.9 | $ | 27.54 | |||
Vested | — | $ | — | |||
Cancelled/forfeited | (7.7 | ) | $ | 35.85 | ||
Nonvested at December 31, 2017 | 1,722.3 | $ | 28.53 |
Year Ended December 31, | |||
2017 | |||
Weighted average grant date fair value of restricted share units granted | $ | 27.54 | |
Vest date fair value of restricted share units vested (in millions) | $ | — |
(Shares in thousands) | Shares | Weighted-Average Grant Date Fair Value | ||||
Nonvested at December 31, 2016 | 1,314.6 | $ | 60.15 | |||
Adjustment due to FMC Technologies transaction (1) | 1,306.0 | $ | — | |||
Granted | 855.2 | $ | 31.65 | |||
Vested | (642.0 | ) | $ | 52.42 | ||
Cancelled/forfeited | (85.0 | ) | $ | 25.33 | ||
Nonvested at December 31, 2017 | 2,748.8 | $ | 25.59 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Weighted average grant date fair value of performance shares granted | $ | 31.65 | $ | 42.74 | $ | 43.16 | |||||
Vest date fair value of performance shares vested (in millions) | $ | 18.60 | $ | 26.38 | $ | 29.01 |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Expected volatility | 35.7 | % | 34.5 | % | 29.2 | % | ||
Expected term (in years) | 6.5 | 4.2 | 4.2 | |||||
Risk-free interest rate | 2.1 | % | — | % | 1.1 | % |
(shares in thousands) | Number of shares | Weighted average exercise price | Weighted average remaining life (in years) | |||||
Balance at December 31, 2014 | 2,520.5 | € | 60.03 | 2.7 | ||||
Granted | 568.6 | € | 47.83 | |||||
Exercised | (561.7 | ) | € | 37.87 | ||||
Cancelled | (106.9 | ) | € | 69.62 | ||||
Balance at December 31, 2015 | 2,420.5 | € | 61.88 | 3.5 | ||||
Granted | 595.1 | € | 48.33 | |||||
Exercised | (25.5 | ) | € | 57.22 | ||||
Cancelled | (801.3 | ) | € | 52.43 | ||||
Balance at December 31, 2016 | 2,188.8 | € | 61.72 | 5.0 | ||||
Adjustment due to FMC Technologies transaction (1) | 2,188.8 | $ | — | |||||
Granted | 798.4 | $ | 29.29 | |||||
Exercised | — | $ | — | |||||
Cancelled | (292.2 | ) | $ | 47.60 | ||||
Balance at December 31, 2017 | 4,883.8 | $ | 36.35 | 4.6 | ||||
Exercisable at December 31, 2017 | 1,788.8 | $ | 51.61 | 1.6 |
Options Outstanding | Options Exercisable | ||||||||||||||
Exercise Price Range | Number of options (in thousands) | Weighted average remaining life (in years) | Weighted average exercise price | Number of options (in thousands) | Weighted average exercise price | ||||||||||
$26.00 - $33.00 | 3,061.9 | 6.4 | $ | 27.33 | — | $ | — | ||||||||
$45.00 - $51.00 | 1,277.0 | 1.0 | $ | 49.23 | 1,244.0 | $ | 49.33 | ||||||||
$55.00 - $57.00 | 544.9 | 3.2 | $ | 56.82 | 544.9 | $ | 56.82 | ||||||||
Total | 4,883.8 | 4.6 | $ | 36.35 | 1,788.9 | $ | 51.61 |
Net Notional Amount Bought (Sold) | |||||
(In millions) | USD Equivalent | ||||
Australian dollar | 156.5 | 122.3 | |||
Brazilian real | 783.1 | 236.7 | |||
British pound | 142.0 | 191.9 | |||
Canadian dollar | (181.9 | ) | (144.9 | ) | |
Euro | 354.9 | 425.6 | |||
Norwegian krone | (1,857.5 | ) | 226.3 | ||
Singapore dollar | 116.2 | 87.0 | |||
U.S. dollar | (647.6 | ) | (647.6 | ) |
Net Notional Amount Bought (Sold) | |||||
(In millions) | USD Equivalent | ||||
Norwegian krone | (290.1 | ) | (35.3 | ) | |
U.S. dollar | 32.8 | 32.8 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(In millions) | Assets | Liabilities | Assets | Liabilities | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts: | |||||||||||||||
Current – Derivative financial instruments | $ | 65.6 | $ | 51.0 | $ | 47.2 | $ | 183.0 | |||||||
Long-term – Derivative financial instruments | 28.0 | 1.7 | 10.7 | 47.6 | |||||||||||
Total derivatives designated as hedging instruments | 93.6 | 52.7 | 57.9 | 230.6 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts: | |||||||||||||||
Current – Derivative financial instruments | 12.7 | 18.0 | — | — | |||||||||||
Long-term – Derivative financial instruments | 4.7 | 4.2 | — | — | |||||||||||
Total derivatives not designated as hedging instruments | 17.4 | 22.2 | — | — | |||||||||||
Long-term – Derivative financial instruments – Synthetic Bonds – Call Option Premium | 62.2 | — | 180.1 | — | |||||||||||
Long-term – Derivative financial instruments – Synthetic Bonds – Embedded Derivatives | — | 62.2 | — | 180.1 | |||||||||||
Total derivatives | $ | 173.2 | $ | 137.1 | $ | 238.0 | $ | 410.7 |
Location of Fair Value Hedge Gain (Loss) Recognized in Income | Gain (Loss) Recognized in Income | ||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Other income (expense), net | $ | 44.9 | $ | 32.8 | $ | (10.2 | ) |
Gain (Loss) Recognized in OCI (Effective Portion) | |||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Foreign exchange contracts | $ | 72.1 | $ | (86.1 | ) | $ | (91.6 | ) |
Location of Cash Flow Hedge Gain (Loss) Reclassified from Accumulated OCI into Income | Gain (Loss) Reclassified From Accumulated OCI into Income (Effective Portion) | ||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Foreign exchange contracts: | |||||||||||
Revenue | $ | (39.3 | ) | $ | — | $ | — | ||||
Cost of sales | 5.3 | — | — | ||||||||
Selling, general and administrative expense | 0.8 | — | — | ||||||||
Research and development expense | — | — | — | ||||||||
Other (expense), net | (102.2 | ) | (165.7 | ) | (93.6 | ) | |||||
Total | $ | (135.4 | ) | $ | (165.7 | ) | $ | (93.6 | ) |
Location of Cash Flow Hedge Gain (Loss) Recognized in Income | Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Foreign exchange contracts: | |||||||||||
Revenue | $ | 9.5 | $ | — | $ | — | |||||
Cost of sales | (9.0 | ) | — | — | |||||||
Selling, general and administrative expense | 0.1 | — | — | ||||||||
Other income (expense), net | 23.0 | (13.2 | ) | (16.9 | ) | ||||||
Total | $ | 23.6 | $ | (13.2 | ) | $ | (16.9 | ) |
Location of Gain (Loss) Recognized in Income | Gain (Loss) Recognized in Income on Derivatives (Instruments Not Designated as Hedging Instruments) | ||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Foreign exchange contracts: | |||||||||||
Revenue | $ | 0.9 | $ | — | $ | — | |||||
Cost of sales | (0.3 | ) | — | — | |||||||
Other income, net | 43.0 | 0.1 | 1.6 | ||||||||
Total | $ | 43.6 | $ | 0.1 | $ | 1.6 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(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 | $ | 173.2 | $ | (114.4 | ) | $ | 58.8 | $ | 238.0 | $ | (236.6 | ) | $ | 1.4 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(In millions) | Gross Amount Recognized | Gross Amounts Not Offset Permitted Under Master Netting Agreements | Net Amount | Gross Amount Recognized | Gross Amounts Not Offset Permitted Under Master Netting Agreements | Net Amount | |||||||||||||||||
Derivative liabilities | $ | 137.1 | $ | (114.4 | ) | $ | 22.7 | $ | 410.7 | $ | (236.6 | ) | $ | 174.1 |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||
Nonqualified Plan: | |||||||||||||||||||||||||||||||
Traded securities (1) | $ | 26.2 | $ | 26.2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Money market fund | 2.4 | — | 2.4 | — | — | — | — | — | |||||||||||||||||||||||
Stable value fund (2) | 0.6 | — | |||||||||||||||||||||||||||||
Available-for-sale securities | 37.5 | 37.5 | — | — | 27.9 | 27.9 | — | — | |||||||||||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||||||||||
Synthetic bonds - call option premium | 62.2 | — | 62.2 | — | 180.1 | — | 180.1 | — | |||||||||||||||||||||||
Foreign exchange contracts | 111.0 | — | 111.0 | — | 57.9 | — | 57.9 | — | |||||||||||||||||||||||
Assets held for sale | 50.2 | — | — | 50.2 | 2.2 | — | — | 2.2 | |||||||||||||||||||||||
Total assets | $ | 290.1 | $ | 63.7 | $ | 175.6 | $ | 50.2 | $ | 268.1 | $ | 27.9 | $ | 238.0 | $ | 2.2 | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Redeemable financial liability | $ | 312.0 | $ | — | $ | — | $ | 312.0 | $ | 174.8 | $ | — | $ | — | $ | 174.8 | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||||||||||
Synthetic bonds - embedded derivatives | 62.2 | — | 62.2 | — | 180.1 | — | 180.1 | — | |||||||||||||||||||||||
Foreign exchange contracts | 74.9 | — | 74.9 | — | 230.6 | — | 230.6 | — | |||||||||||||||||||||||
Liabilities held for sale | 13.7 | — | — | 13.7 | — | — | — | — | |||||||||||||||||||||||
Total liabilities | $ | 462.8 | $ | — | $ | 137.1 | $ | 325.7 | $ | 585.5 | $ | — | $ | 410.7 | $ | 174.8 |
(1) | Includes equity securities, fixed income and other investments measured at fair value. |
(2) | Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. |
(In millions) | Year Ended December 31, 2017 | |||
Balance at beginning of period | $ | 174.8 | ||
Less: Gains (losses) recognized in interest expense | (293.7 | ) | ||
Less: Settlements | 156.5 | |||
Balance at end of period | $ | 312.0 |
December 31, 2017 | December 31, 2016 | ||||||||||||||
(In millions) | Carrying Amount (1) | Fair Value (2) | Carrying Amount (1) | Fair Value (2) | |||||||||||
Synthetic bonds due 2021 | $ | 499.2 | $ | 647.4 | $ | 428.0 | $ | 661.5 | |||||||
3.45% Senior Notes due 2022 | 500.0 | 497.7 | — | — | |||||||||||
5.00% Notes due 2020 | 238.9 | 265.2 | 209.7 | 239.0 | |||||||||||
3.40% Notes due 2022 | 179.8 | 199.4 | 158.0 | 177.8 | |||||||||||
3.15% Notes due 2023 | 155.0 | 167.6 | 136.1 | 153.1 | |||||||||||
3.15% Notes due 2023 | 149.6 | 161.4 | 131.4 | 142.8 | |||||||||||
4.00% Notes due 2027 | 89.9 | 99.9 | 79.0 | 89.6 | |||||||||||
4.00% Notes due 2032 | 115.4 | 142.9 | 101.2 | 127.3 | |||||||||||
3.75% Notes due 2033 | 116.0 | 126.7 | 101.8 | 107.8 |
(1) | Carrying amounts are shown net of unamortized debt discounts and premiums and unamortized debt issuance costs of $13.8 million and $14.2 million as of 2017 and 2016, respectively. |
(2) | Fair values are based on Level 2 quoted market rates. |
• | Subsea—manufactures and designs products and systems, performs engineering, procurement and project management and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas. |
• | Onshore/Offshore—designs and builds onshore facilities related to the production, treatment and transportation of oil and gas; and designs, manufactures and installs fixed and floating platforms for the production and processing of oil and gas reserves for companies in the oil and gas industry. |
• | Surface Technologies—designs and manufactures systems and provides services used by oil and gas companies involved in land and offshore exploration and production of crude oil and natural gas; designs, manufactures and supplies technologically advanced high pressure valves and fittings for oilfield service companies; and also provides flowback and well testing services for exploration companies in the oil and gas industry. |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Segment revenue | |||||||||||
Subsea | $ | 5,877.4 | $ | 5,850.5 | $ | 6,520.6 | |||||
Onshore/Offshore | 7,904.5 | 3,349.1 | 4,951.3 | ||||||||
Surface Technologies | 1,274.6 | — | — | ||||||||
Other revenue and intercompany eliminations | 0.4 | — | — | ||||||||
Total revenue | $ | 15,056.9 | $ | 9,199.6 | $ | 11,471.9 | |||||
Income before income taxes: | |||||||||||
Segment operating profit (loss): | |||||||||||
Subsea | $ | 460.5 | $ | 732.0 | $ | 866.9 | |||||
Onshore/Offshore | 810.9 | 34.1 | (313.3 | ) | |||||||
Surface Technologies | 82.7 | — | — | ||||||||
Total segment operating profit | 1,354.1 | 766.1 | 553.6 | ||||||||
Corporate items: | |||||||||||
Corporate expense (1) | (359.2 | ) | (185.9 | ) | (331.9 | ) | |||||
Interest income | 140.8 | 85.3 | 77.7 | ||||||||
Interest expense | (456.0 | ) | (114.1 | ) | (148.9 | ) | |||||
Total corporate items | (674.4 | ) | (214.7 | ) | (403.1 | ) | |||||
Income before income taxes (2) | $ | 679.7 | $ | 551.4 | $ | 150.5 |
(1) | Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses. |
(2) | Includes amounts attributable to noncontrolling interests. |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Segment assets: | |||||||
Subsea | $ | 12,944.4 | $ | 7,823.1 | |||
Onshore/Offshore | 4,604.8 | 3,229.3 | |||||
Surface Technologies | 2,453.3 | — | |||||
Intercompany eliminations | (24.3 | ) | — | ||||
Total segment assets | 19,978.2 | 11,052.4 | |||||
Corporate (3) | 8,285.5 | 7,626.9 | |||||
Total assets | $ | 28,263.7 | $ | 18,679.3 |
(3) | Corporate includes cash, LIFO adjustments, deferred income tax balances, property, plant and equipment not associated with a specific segment, pension assets and the fair value of derivative financial instruments. |
Year Ended December 31, | |||||||||||
(In millions) | 2017 | 2016 | 2015 | ||||||||
Revenue: | |||||||||||
Russia | $ | 4,894.2 | $ | 283.3 | $ | — | |||||
United States | 1,534.7 | 1,033.7 | 1,402.5 | ||||||||
Angola | 1,016.2 | 935.3 | 1,013.7 | ||||||||
Norway | 971.2 | 574.4 | 1,293.3 | ||||||||
Brazil | 911.1 | 1,006.9 | 1,102.3 | ||||||||
Australia | 953.9 | 776.6 | 1,044.8 | ||||||||
United Kingdom | 465.9 | 761.5 | 1,155.4 | ||||||||
All other countries | 4,309.7 | 3,827.9 | 4,459.9 | ||||||||
Total revenue | $ | 15,056.9 | $ | 9,199.6 | $ | 11,471.9 |
December 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Long-lived assets: | |||||||
United States | $ | 567.1 | $ | 44.1 | |||
Norway | 321.4 | 121.9 | |||||
Malaysia | 257.1 | 166.3 | |||||
Brazil | 408.3 | 319.5 | |||||
United Kingdom | 1,190.1 | 1,078.2 | |||||
All other countries | 1,127.5 | 890.1 | |||||
Total long-lived assets | $ | 3,871.5 | $ | 2,620.1 |
Capital Expenditures Year Ended December 31, | Depreciation and Amortization Year Ended December 31, | Research and Development Expense Year Ended December 31, | |||||||||||||||||||||||||||||||||
(In millions) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
Subsea | $ | 179.1 | $ | 286.9 | $ | 290.1 | $ | 507.2 | $ | 256.8 | $ | 295.9 | $ | 169.2 | $ | 75.4 | $ | 67.1 | |||||||||||||||||
Onshore/Offshore | 16.2 | 26.0 | 35.4 | 41.1 | 43.9 | 42.8 | 31.4 | 30.0 | 28.4 | ||||||||||||||||||||||||||
Surface Technologies | 35.4 | — | — | 63.6 | — | — | 12.3 | — | — | ||||||||||||||||||||||||||
Corporate | 25.0 | — | — | 2.8 | — | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 255.7 | $ | 312.9 | $ | 325.5 | $ | 614.7 | $ | 300.7 | $ | 338.7 | $ | 212.9 | $ | 105.4 | $ | 95.5 |
2017 | 2016 | ||||||||||||||||||||||||||||||
(In millions, except per share data) | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | |||||||||||||||||||||||
Revenue | $ | 3,683.0 | $ | 4,140.9 | $ | 3,845.0 | $ | 3,388.0 | $ | 2,047.7 | $ | 2,375.7 | $ | 2,370.5 | $ | 2,405.7 | |||||||||||||||
Cost of sales | 2,914.1 | 3,468.2 | 3,162.0 | 2,980.3 | 1,766.3 | 1,931.0 | 1,927.0 | 2,005.7 | |||||||||||||||||||||||
Net income (loss) | (127.5 | ) | 117.9 | 159.0 | (15.2 | ) | (155.0 | ) | 301.7 | 103.8 | 120.6 | ||||||||||||||||||||
Net income (loss) attributable to TechnipFMC plc | $ | (153.9 | ) | $ | 121.0 | $ | 164.9 | $ | (18.7 | ) | $ | (133.8 | ) | $ | 302.4 | $ | 104.0 | $ | 120.7 | ||||||||||||
Basic earnings (loss) per share | $ | (0.33 | ) | $ | 0.26 | $ | 0.35 | $ | (0.04 | ) | $ | (1.13 | ) | $ | 2.50 | $ | 0.87 | $ | 1.02 | ||||||||||||
Diluted earnings (loss) per share | $ | (0.33 | ) | $ | 0.26 | $ | 0.35 | $ | (0.04 | ) | $ | (1.13 | ) | $ | 2.39 | $ | 0.83 | $ | 0.97 |
(a) | The following documents are filed as part of this Annual Report on Form 10-K: |
1. | The following consolidated financial statements of TechnipFMC plc and subsidiaries are filed as part of this Annual Report on Form 10-K under Part II, Item 8: |
2. | Financial Statement Schedule and related Report of Independent Registered Public Accounting Firm: |
3. | Exhibits: |
(In millions) | Additions | ||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts (a) | Deductions and Adjustments (b) | Balance at End of Period | ||||||||||||||
Year Ended December 31, 2015: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 43.0 | $ | 21.4 | $ | — | $ | (16.2 | ) | $ | 48.2 | ||||||||
Valuation allowance for deferred tax assets | $ | 119.9 | $ | 13.9 | $ | — | $ | — | $ | 133.8 | |||||||||
Year Ended December 31, 2016: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 48.2 | $ | 58.4 | $ | — | $ | (21.0 | ) | $ | 85.6 | ||||||||
Valuation allowance for deferred tax assets | $ | 133.8 | $ | 38.9 | $ | — | $ | — | $ | 172.7 | |||||||||
Year Ended December 31, 2017: | |||||||||||||||||||
Allowance for doubtful accounts | $ | 85.6 | $ | 15.5 | $ | 19.8 | $ | (3.5 | ) | $ | 117.4 | ||||||||
Valuation allowance for deferred tax assets | $ | 172.7 | $ | 258.7 | $ | 4.4 | $ | (5.8 | ) | $ | 430.0 |
(a) | “Additions charged to other accounts” includes translation adjustments. |
(b) | “Deductions and adjustments” includes write-offs, net of recoveries, and reductions in the allowances credited to expense. |
Exhibit No. | Exhibit Description | |
2.1 | ||
2.1.a | ||
2.3 | ||
3.1 | ||
4.1 | ||
4.1.a | ||
4.1.b | ||
4.4 | ||
10.1* | ||
10.1.a* | ||
10.1.b* | ||
10.2* | ||
10.3* | ||
10.4* | ||
10.5* | ||
10.6* | ||
10.7* | ||
10.8* | ||
10.9* | ||
10.10* | ||
10.11* | ||
10.12* | ||
10.13* | ||
10.14* | ||
10.15* | ||
10.16* | ||
10.17* | ||
10.18* | ||
10.19* | ||
10.20* | ||
10.21* | ||
10.22* | ||
10.23 | ||
10.24 | ||
10.25 | ||
10.26 | ||
10.27 | ||
10.28 | ||
10.29 | ||
21.1 | ||
23.1 | ||
23.2 | ||
31.1 | ||
31.2 | ||
32.1** | ||
32.2** | ||
101.INS | ||
101.SCH | ||
101.CAL | ||
101.DEF | ||
101.LAB | ||
101.PRE |
TechnipFMC plc (Registrant) | ||
By: | /S/ MARYANN T. MANNEN | |
Maryann T. Mannen Executive Vice President and Chief Financial Officer (Principal Financial Officer and a Duly Authorized Officer) |
Date | Signature | |
April 2, 2018 | /S/ DOUGLAS J. PFERDEHIRT | |
Douglas J. Pferdehirt Chief Executive Officer (Principal Executive Officer) | ||
April 2, 2018 | /S/ MARYANN T. MANNEN | |
Maryann T. Mannen Executive Vice President and Chief Financial Officer (Principal Financial Officer and a Duly Authorized Officer) | ||
April 2, 2018 | /S/ THIERRY PILENKO | |
Thierry Pilenko Executive Chairman | ||
April 2, 2018 | /S/ ARNAUD CAUDOUX | |
Arnaud Caudox, Director | ||
April 2, 2018 | /S/ MARIE-ANGE DEBON | |
Marie-Ange Debon, Director | ||
April 2, 2018 | /S/ ELEAZAR DE CARVALHO FILHO | |
Eleazar De Carvalho Filho, Director | ||
April 2, 2018 | /S/ KAY G. PRIESTLY | |
Kay G. Priestly, Director | ||
April 2, 2018 | /S/ JOSEPH RINALDI | |
Joseph Rinaldi, Director | ||
April 2, 2018 | /S/ JAMES M. RINGLER | |
James M. Ringler, Director |
TECHNIP STOCK OPTION PLAN RULES Authorization of the Extraordinary General Meeting of April 28, 2011 TRANCHE 2 Board of Directors of December 14, 2011 Grant of Stock Options (Translation for information purpose) |
1. | BENEFICIARIES |
2. | NATURE OF OPTIONS |
3. | EXERCISE PRICE |
4. | VALIDITY OF OPTIONS |
5. | CONDITIONS FOR EXERCISING THE OPTIONS |
5.1 | General conditions |
5.1.1 | The exercise of Options under this Plan is subject to the condition that the Beneficiary remains an employee or an Executive Officer until the Date of exercise of the Options. |
5.1.2 | Notwithstanding the condition provided for in provisions of Article 5.1.1. hereabove, the right to exercise the Options is maintained in the following situations: |
5.1.2.1 | Retirement leave once satisfying the legal minimum period of contributions to the National Insurance in France (or corresponding rules in other countries). |
5.1.2.2 | Full disability impairing any employment contract as classified in categories two or three under article L.341-4 of the French Social Security Code (or corresponding rules in other countries). In such a case the exercise of options by the Beneficiary shall occur prior to the end of the four years period referred to in Article 4. |
5.1.2.3 | Redundancy or dismissal for any reasons other than gross or willful misconduct or negotiated leave. |
5.1.2.4 | Departure from the Group in the context of a sale of assets. |
5.1.2.5 | Waiver of the condition mentioned in Article 5.1.1 above if granted by the Chairman and Chief Executive Officer. |
5.1.3 | Case of death |
5.2 | Conditions relating to the number of Options |
5.2.1. | Principle |
5.2.2. | Exceptions |
5.2.2.1. | Death - Disability |
5.2.2.2. | Take-over bid or exchange offer on the shares of the Company |
5.3 | Suspension of the right to exercise Options |
5.4 | Disposal and hedging of shares are prohibited |
6. | MODE OF EXERCISE OF OPTIONS |
– | A completed and signed Options exercise form, |
– | Except in the case of a cash-less exercise, payment made to the Managing Bank amounting to the global exercise price of the exercised Options. |
7. | TEMPORARY PROHIBITION TO SELL THE SHARES |
8. | NATURE AND RIGHTS OF ENTITLEMENT OF SHARES |
9. | INFORMATION OF THE BENEFICIARIES |
10. | AMENDMENTS TO THE PLAN AND NOTIFICATIONS |
10.1. | This Plan may be amended by the Board of Directors. |
10.2. | Notifications may be made by any means, including by internal mail, regular mail, or mail with acknowledgment of receipt, by fax or by electronic mail to the address or fax number indicated by the Beneficiary. |
11. | BENEFICIARIES NON RESIDING IN FRANCE |
11.1. | As concern Beneficiary subject to taxations in the United States of America, the Plan shall be construed and enforced so that the exercise of Options and the delivery of shares shall not result in a deferred compensation under Section 409 A of the US Internal Revenue Code of 1986, as modified. |
11.2. | The Beneficiary’s eligibility to participate in the Plan, the exercise of Options and the delivery of Shares are contingent upon the Company and/or the companies in its Group obtaining the necessary or desirable local authorizations, settlements or formality, in the relevant countries. As for the United States, while the grant of Options and the acquisition of shares by an American resident is possible in accordance with current American tax and securities regulations, if there is a change to such regulations or the interpretations thereof, or their interpretation by the Company, making it impossible or inopportune the delivery of Shares to an American resident, the ability to exercise the Options or the delivery of Shares resulting from such exercise may be suspended by the Company without prior notice. |
11.3. | More generally, if the legislation of the country in which the Beneficiary is located makes the delivery of the Shares to such Beneficiary impossible or inopportune, the exercise of the Options or the delivery of the Shares may be suspended without any prior notice by the Company. |
11.4. | Neither the Options, not the resulting shares were of will be registered with the US Securities and Exchange Commission or any other US Authority. Shares subscribed for under this Plan may not be sold in the United States. Such Shares may be sold only through Euronext Paris. |
11.5. | Each Beneficiary is responsible for being informed to the tax consequences (including social charges) as a result of the Options granted to him or her, the Shares and the gains received through the exercise of Options and/or the sale of the Shares. All such taxes and social chares imposed on the Beneficiary shall be his or her sole responsibility. If upon grant of any Options, the delivery or sale of Shares in connection therewith, the Beneficiary’s employer or any member of the Group is responsible for withholding tax or social charges for the amount of the Beneficiary, he or she immediately accepts that the Company suspends the exercise of the Option and/or delay the delivery of Shares resulting from exercise or prohibit the sale of Shares until the Beneficiary has made or arranged for payment of the required amount. Alternatively, the Company has the right to sell all or a portion the Shares in order to reimburse the amounts owed with the proceeds of such sales. |
12. | APPLICABLE LAW |
12.1. | The present Plan is governed by French Law. |
12.2. | In case of conflict regarding its interpretation, validity or implementation, the parties will attempt to find an amicable settlement; if not, the dispute will be brought before the competent French Court. |
12.3. | Should a provision be deemed invalid for any reason, the enforcement of the Plan will not be affected therefrom and will be construed as closely as possible in accordance with the initial intent. |
• | The TSR metric is calculated as the rate of return of a share over a year, taking into account the payment of a dividend during the period. The dividend is assumed to be reinvested at the dividend record date closing share price (definition used by Bloomberg); |
• | The OIFRA metric is the operating income from recurring activities, as reported in Technip's Annual Report; |
• | The ROCE metric (Return on Capital Employed) |
– | if the Reference Performance is below 25%, the At Risk Portion of the Plan will be lost; |
– | if the Reference Performance is at least equal to 25%, the percentage of the options that will be exercisable in the At Risk Portion of the Plan will be defined on a straight line basis against the Reference Performance: |
◦ | from 0 to 100% for the Comex At Risk Portion, |
◦ | from 0 to 50% for the Other Beneficiaries At Risk Portion. |
(1) | The list of competitors to be retained for the comparison of the TSR competitors is the following: Subsea7, Amec, Petrofac, Tecnicas Reunidas, Saipem, KBR, Chiyoda, SBM Offshore, Aker Solutions, JGC, Oceaneering and McDermott. The Board of Directors, upon consultation of the Nominations and Remunerations Committee, may make any necessary adjustments in order to preserve the representativeness of the sample and, in particular, decide to replace any of the companies in the sample which may disappear or the financial statements of which would cease to be available or relevant. |
– | The TSR of the two competitors with the lowest and the highest TSR will be eliminated |
– | The TSR performance will be: |
◦ | 100% if Technip’s TSR performance is above of or equal to that of the two remaining best competitors |
◦ | 80% if Technip’s TSR performance is above of or equal to that of the 3rd and 4th remaining best competitors |
◦ | 60% if Technip’s TSR performance is above of or equal to that of the 5th and 6th remaining best competitors |
◦ | 40% if Technip’s TSR performance is above of or equal to that of the 7th and 8th remaining best competitors |
◦ | 20% if Technip’s TSR performance is above of or equal to that of the 9th and 10th remaining best competitors |
◦ | 0% if Technip’s TSR performance is below that of the 10th remaining best competitor. |
(2) | The target values for the OIFRA and ROCE metrics are confidential data likely to have an influence of the share price which prohibits any ex ante disclosure even to the Beneficiaries. Conversely the calculation of the Reference Performance ex post, shall be fully disclosed based on actual reported figures. |
TECHNIPFMC PLC - AND - THIERRY PILENKO | ||||
SERVICE AGREEMENT | ||||
(1) | TECHNIPFMC PLC, a company incorporated in England and Wales whose registered office is at One St Paul’s Churchyard, London, EC4M 8AP (the "Company"); and |
(2) | THIERRY PILENKO c/o One St Paul’s Churchyard, London, EC4M 8AP (the "Employee"). |
1. | PERIOD OF EMPLOYMENT |
2. | DUTIES |
2.1. | The Employee shall serve the Company in the capacity of Executive Chairman or such other capacity as the Board may determine from time to time and shall at all times comply with the lawful and reasonable directions of the Board and the duties and requirements delineated in Exhibit A of the Corporate Governance Guidelines included in the BCA in the capacity of Executive Chairman. |
2.2. | The Employee shall devote his full time and attention to the business and affairs of the Company and any Associated Company for whom he is required to perform duties and shall not without the prior written consent of the Company directly or indirectly carry on or be engaged, concerned or interested in any other business trade or occupation. The Employee acknowledges that he has unmeasured working time for the purposes of any legislation which derives from Council Directive 93/104/EC in any jurisdiction. |
2.3. | The Employee's normal place of work shall be the Company's offices in France, the United Kingdom and the United States or such other place of business of the Company or any Associated Company as the Company may reasonably determine from time to time. |
2.4. | The Employee shall comply with all rules or codes of conduct in force from time to time required by any regulatory body in relation to the business of the Company or any Associated Company or the status of the Employee or which the Company shall reasonably determine are necessary for the proper functioning of its business. |
2.5. | The Board, on behalf of the Company, reserves the right at any time to require the Employee for such period or periods as it sees fit to cease carrying out his duties and/or to exclude him from any premises belonging to the Company or any Associated Company provided that during such period or periods the Company continues to pay and provide to the Employee his salary and contractual benefits and the Employee must continue to comply without exception with all of his obligations under this Agreement. For the avoidance of doubt during such period of suspension or exclusion the Employee shall not without the prior written consent of the Company directly or indirectly carry on or be engaged concerned or interested in any other business trade or occupation or contact any customers, clients, advertisers, suppliers, agents, professional advisers, broker or employees of the Company or any Associated Company. |
3. | SALARY AND BENEFITS |
3.1. | The Company shall pay the Employee during his employment a gross salary of €900,000 per annum. This salary shall be paid in equal monthly instalments in arrears by credit transfer to the Employee's bank account after deduction of tax and social security contributions required by applicable law. The payment of the salary will be managed through the payroll of the French Associated Company on behalf of the Company. |
3.2. | At the discretion of the Company, the Employee shall be eligible to receive variable remuneration including being eligible to participate in any long-term employee incentive plans assumed or adopted by the Company from time to time in accordance with the undertakings given by Technip in its letter of 23 April 2015. This variable remuneration shall be considered and paid as salary and such deductions shall be made as are required by the applicable social security regime. The terms and amount of any variable remuneration (and whether it is paid in cash or in other forms, such as shares or share based incentives) will be approved from time to time and notified to the Employee by the Company’s Compensation Committee. There are no circumstances whether in reliance on express or implied terms or otherwise where the Employee can require pay out of a particular sum or payment in a particular form or claim compensation for loss of any variable remuneration. |
3.3. | The Company agrees that the Employee will be provided with the following benefits: |
(a) | reimbursement of administrative and reasonable legal expenses for his green card for himself and for his family in the United States; |
(b) | the continuation of supplementary health coverage for him and his spouse (currently PREVINTER) subject always to such coverage being available at reasonable cost; |
(c) | the reimbursement of the cost of up to twelve intercontinental flights for his spouse in the same category as the Employee in relation to the Employee's business trips; |
(d) | vehicle with driver to be made available for his business trips; and |
(e) | the reimbursement of reasonable expenses relating to preparing and filing his tax returns in France, the United Kingdom and the United States. |
3.4. | The Employee shall benefit from all existing or future supplementary retirement plans applicable to the Company’s executive officers working in France from time to time. |
3.5. | The Employee shall be entitled to 25 days paid holiday in each of the Company's holiday years in addition to the usual public holidays in the UK and France. Holiday entitlement in the holiday years that the employment starts and ends shall be calculated at the rate of 2.08 days for each complete month of employment. On termination the Employee shall be paid in lieu of any untaken holiday entitlement in respect of the holiday year in which termination takes effect (if any) or shall be obliged to repay any holiday pay received in excess of the Employee's entitlement (if any). |
3.6. | In the event that the Employee is unable to carry out his duties by reason of sickness or injury he shall, subject to compliance with the Company's procedures relating to notification and certification periods, be entitled to statutory sick pay in accordance with the relevant applicable statutory rules. |
3.7. | The Company shall reimburse the Employee for all reasonable travelling and similar out-of-pocket expenses incurred in the discharge of his duties subject to the provision of receipts and invoices in accordance with the Company's expenses policy in force from time to time. |
3.8. | In the event of termination of employment for any reason other than gross misconduct or serious professional fault by the Employee, any outstanding stock options, performance shares or other awards (including cash awards) granted prior to the effective date of this Agreement under Technip’s long term employee incentive plans will continue on their existing terms, subject to any clawback policies required by applicable law and as implemented by the board of the Company. Any subsequent grants of stock options, performance shares, restricted shares, or other awards will be governed by the terms of the award. |
4. | COMPANY PROPERTY AND CONFIDENTIALITY |
4.1. | The Employee shall disclose full details of all Intellectual Property that he discovers or makes, or assists in discovering or making, during his employment and to the extent that such Intellectual Property is the property of the Company shall do all things during and after the termination of his employment which may be necessary or desirable for obtaining appropriate forms of protection for such property and for fully vesting such property in the Company or its nominee as the Company may specify. |
4.2. | All documents and other things (in whatever form or media) relating to the business or affairs of the Company or any Associated Company which are acquired received or created by the Employee during his employment shall be the property of the Company and shall be surrendered to the Company (together with all copies) on demand at any time and, in any event, upon termination of employment. |
4.3. | The Employee shall not at any time either during or after the termination of his employment disclose to any person or use for his own purposes any confidential information he acquires during his employment concerning the organisation, business, finances, transactions or affairs of the Company or any Associated Company other than in the proper performance of his duties or as ordered by a competent court. This clause shall not apply to any confidential information which shall enter the public domain unless it does so through the Employee's default. |
5. | TERMINATON |
5.1. | The Board, on behalf of the Company, reserves the right in its absolute discretion to terminate the employment with immediate effect (whether or not notice has been given by either party) by giving written notice of its intention to make a payment in lieu of notice to the Employee and if it does so the Company shall make a payment of money in lieu of notice equal to the base salary only that the Employee would be entitled to receive during any unexpired part of the Term less any applicable tax and social security within 60 days of such notice. For the avoidance of doubt where the Employee's employment is terminated in accordance with this clause, this Agreement will terminate on the date the Company notifies the Employee that it is terminating his employment in accordance with this clause. |
5.2. | Subject to clause 5.3, upon termination of the Employee’s employment (other than pursuant to clause 5.4), the Employee will be entitled to receive a gross payment equal to 12 months’ gross remuneration calculated as the salary and the total amount of any variable remuneration for he would have received under any long term equity incentive plan assumed or adopted by the Company during that year (the "Severance Indemnity"). |
5.3. | The Severance Indemnity, which includes all and any mandatory payments the Employee would be entitled to by law resulting from the termination of this Agreement, is in full and final settlement of all and any rights and claims that the Employee may have against the Company arising out of the termination of his employment (including both contractual and statutory employment claims wherever in the world arising). The Employee agrees to waive, release and discharge any and all such rights and claims and acknowledges that it is a condition of the payment of the Severance Indemnity that he will execute a settlement agreement (and any other documents reasonably required by the Company) in a form reasonably acceptable to the Company in order to give effect to the release and waiver in this clause 5.3. |
5.4. | The Board, on behalf of the Company, may terminate the employment with immediate effect at any time without notice or payment in lieu of notice if the Employee: |
(a) | commits any serious or persistent breach or non observance of the terms and conditions of this Agreement; |
(b) | is guilty of gross misconduct or gross negligence in connection with or affecting his employment; |
(c) | is guilty of conduct which brings or is likely to bring him or the Company or any Associated Company into disrepute; |
(d) | is convicted of an arrestable offence (other than a road traffic offence for which a non-custodial penalty is imposed); or |
(e) | is or becomes prohibited (by law or the articles of association of the Company) from being a director or voluntarily resigns as a director of the Company. |
5.5. | On termination the Employee shall: |
(a) | at the request of the Board immediately resign from any office held by him in the Company or any Associated Company without claim for compensation (without prejudice to any claims he may have |
(b) | immediately repay all outstanding debts and loans due to the Company or any Associated Company and the Company is hereby authorised to deduct from any monies due to the Employee a sum in repayment of all or any part of any such debts or loans. |
6. | POST-TERMINATION UNDERTAKINGS |
6.1. | The Employee undertakes that he will not for the period of 12 months’ after the termination of his employment without the prior written consent of the Board be entitled to exercise any activity of any kind whatsoever in the Restricted Area, on behalf of himself or on behalf of any natural person or legal entity in connection with the carrying on of any business in competition with the Business. |
6.2. | In consideration for the obligation in clause 6.1 but subject to clauses 6.3 and 6.4, the Company will procure that the Executive receives compensation of 12 months’ gross remuneration calculated by averaging the amount of gross basic salary and variable remuneration (excluding the value received under any long term equity incentive plan assumed or adopted by the Company) received by the Executive over the 3 previous full financial years from the Company or any predecessor thereto. This compensation shall be paid on an average monthly basis as from the date of the effective termination of his employment, and the Employee shall continue to benefit, throughout the period indicated in clause 6.1, from any mandatory and/or supplementary insurance contracted by the Company and applicable to the Employee in consideration of his social security status. |
6.3. | In the event that the Employee's employment terminates pursuant to clause 5.4 or serious professional fault, the Board may determine that the compensation referred to in clause 6.2 shall not be payable. |
6.4. | If the Employee is determined, in the reasonable opinion of the Board, to be in breach of his obligation in clause 6.1 at any time, the Employee shall be liable to pay an amount to the Company by way of damages, such amount being determined by the Board but being no less than 12 months' gross remuneration calculated by averaging the amount of the annual gross basic salary and variable remuneration (excluding the value received under any long term equity incentive plan assumed or adopted by the Company) received by the Executive over the 3 previous full financial years. The Board also reserves the right to bring legal proceedings against the Employee for compensation in respect of any damages actually suffered by the Company or any Associated Company. |
6.5. | The restrictions in this clause 6 (on which the Employee has had the opportunity to take independent advice, as the Employee hereby acknowledges) are separate and severable restrictions and are considered by the parties to be reasonable in all the circumstances. It is agreed that if any such restrictions, by themselves, or taken together, shall be adjudged to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Company or an Associated Company but would be adjudged reasonable if some part of it were reformed or deleted, the relevant restriction or restrictions shall be reformed or apply with such deletion(s) as may be necessary to make it or them valid and enforceable. |
7. | MISCELLANEOUS |
7.1. | The Employee warrants that he has lawful authority to work in the United Kingdom, France and the United States and that by entering into this Agreement he is not and will not be in breach of any express or implied term of any contract court order or any other legal obligation. |
7.2. | The Company shall be entitled at any time during the employment to set off and/or make deductions from the Employee's salary or other sums due to him monies due to the Company or any Associated Company in respect of any overpayment debt or other monies due from him. |
8. | DEFINITIONS AND INTERPRETATION |
8.1. | In this Agreement unless the context otherwise requires: |
8.2. | This Agreement contains the entire understanding between the parties and supersedes all (if any) subsisting agreements, arrangements and understandings (written or oral) relating to the employment or engagement of the Employee with the Company or any predecessors or Associated Company, including but not limited to any undertakings given by Technip SA in its letter of 23 April 2015, and all such agreements, arrangements and understandings shall be deemed to have been terminated by mutual consent. |
8.3. | Any amendments to this Agreement shall only be valid if set out in writing and signed by both parties. The Board, on behalf of the Company, reserves the right to amend or replace any term of this Agreement and any such amendments shall be notified to the Employee in writing. |
8.4. | If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: (i) the legality, validity or enforceability in that jurisdiction of any other provisions of this Agreement; or (ii) the legality, validity or enforceability in any other jurisdiction of that or any other provision of this Agreement. |
8.5. | This Agreement and all non-contractual or other obligations arising out of or in connection with it are governed by and shall be construed in accordance with English law and are subject to the exclusive jurisdiction of the English Courts. |
(a) | Salary: Your annual salary shall remain unchanged at €900,000 per annum payable in accordance with Clause 3.1 of the Service Agreement. You shall continue to be paid through the Company’s French branch, and French social security contributions shall be made in respect of you. Accordingly, you shall continue to be entitled to all benefits granted under the French social security system. |
(b) | Annual Bonus: You will be eligible to receive a bonus annually subject to the achievement of performance criteria which will be notified to you separately by the Compensation Committee (the “Annual Bonus”). Your “on target” Annual Bonus is 120% of your annual salary with the possibility of a lower or higher bonus (up to 200% of the on target amount, or 240% of annual salary) for performance below or above target level. The actual amount of any Annual Bonus payable will be determined by the Compensation Committee in its sole discretion, taking into account Company performance against the relevant performance criteria. The Bonus will be paid by the Company after financial results for the year are approved by the Compensation Committee. For the avoidance of doubt, in the year when the Service Agreement terminates, you will be eligible for a pro-rated portion of your Annual Bonus for that year calculated by reference to your employment from the start of such year up until the date on which your employment terminates. |
(c) | Payments on termination of employment: Clauses 5.2 and 6.2 of the Service Agreement are hereby amended to reflect that your “gross remuneration” for calculation of the Severance Indemnity and the non-competition compensation will be equal to your annual base salary and target Annual Bonus for the year of termination. In addition to your entitlement to a Severance Indemnity pursuant to Clause 5.2 of the Service Agreement and the non-competition compensation pursuant to Clause 6.2 of the Service Agreement, upon termination of your employment (regardless of the reason for termination) you will be entitled to receive a |
1. | I have reviewed this annual report on Form 10-K for the year ended December 31, 2017 of TechnipFMC plc (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
/s/ DOUGLAS J. PFERDEHIRT | ||
Douglas J. Pferdehirt | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K for the year ended December 31, 2017 of TechnipFMC plc (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
/s/ MARYANN T. MANNEN | ||
Maryann T. Mannen | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
/s/ DOUGLAS J. PFERDEHIRT | ||
Douglas J. Pferdehirt | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ MARYANN T. MANNEN | ||
Maryann T. Mannen | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Mar. 27, 2018 |
Jun. 30, 2017 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | fti | ||
Entity Registrant Name | TECHNIPFMC PLC | ||
Entity Central Index Key | 0001681459 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 462,497,601 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 10,268,441,348 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||
Net income | $ 134.2 | $ 371.1 | $ 14.0 | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||
Foreign currency translation adjustments | [1] | (87.2) | (71.4) | (394.9) | ||||||
Net gains (losses) on hedging instruments: | ||||||||||
Net gains (losses) arising during the period | 53.8 | (64.8) | (70.5) | |||||||
Reclassification adjustment for net gains included in net income | 101.2 | 120.1 | 67.8 | |||||||
Net gains (losses) on hedging instruments | [2] | 155.0 | 55.3 | (2.7) | ||||||
Pension and other post-retirement benefits: | ||||||||||
Net gains arising during the period | 43.2 | 7.0 | 18.6 | |||||||
Prior service cost arising during the period | 0.0 | 0.0 | 0.2 | |||||||
Reclassification adjustment for settlement losses included in net income | (15.2) | (7.4) | 0.0 | |||||||
Reclassification adjustment for amortization of prior service cost included in net income | 0.7 | 0.5 | 0.5 | |||||||
Reclassification adjustment for amortization of net actuarial loss included in net income | 1.8 | 0.7 | 2.6 | |||||||
Net pension and other post-retirement benefits | [3] | 30.5 | 0.8 | 21.9 | ||||||
Other comprehensive income (loss), net of tax | 98.3 | (15.3) | (375.7) | |||||||
Comprehensive income (loss) | 232.5 | 355.8 | (361.7) | |||||||
Comprehensive (income) loss attributable to noncontrolling interest | (21.3) | 20.9 | 3.0 | |||||||
Comprehensive income (loss) attributable to TechnipFMC plc | $ 211.2 | $ 376.7 | $ (358.7) | |||||||
|
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Foreign currency translation adjustments, tax (expense) benefit | $ (11.5) | $ 0.0 | $ 0.0 |
Net gains (losses) on hedging instruments, tax benefit | (52.5) | (24.3) | (4.7) |
Net pension and other post-retirement benefits, tax (expense) benefit | $ (11.7) | $ 1.0 | $ (9.3) |
Consolidated Balance Sheets - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets | ||
Cash and cash equivalents | $ 6,737.4 | $ 6,269.3 |
Trade receivables, net of allowances of $117.4 in 2017 and $85.6 in 2016 | 1,484.4 | 1,469.5 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,755.5 | 1,040.8 |
Inventories, net (Note 6) | 987.0 | 334.7 |
Derivative financial instruments (Note 20) | 78.3 | 47.2 |
Income taxes receivable | 337.0 | 265.0 |
Advances paid to suppliers | 391.3 | 711.5 |
Other current assets (Note 7) | 1,206.2 | 799.2 |
Total current assets | 12,977.1 | 10,937.2 |
Investments in equity affiliates (Note 8) | 272.5 | 235.4 |
Property, plant and equipment, net (Note 10) | 3,871.5 | 2,620.1 |
Goodwill (Note 11) | 8,929.8 | 3,718.3 |
Intangible assets, net (Note 11) | 1,333.8 | 173.7 |
Deferred income taxes (Note 17) | 454.7 | 553.6 |
Derivative financial instruments (Note 20) | 94.9 | 190.8 |
Other assets | 329.4 | 250.2 |
Total assets | 28,263.7 | 18,679.3 |
Liabilities and equity | ||
Short-term debt and current portion of long-term debt (Note 13) | 77.1 | 683.6 |
Accounts payable, trade | 3,958.7 | 3,837.7 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,314.2 | 4,141.8 |
Accrued payroll | 402.2 | 307.7 |
Derivative financial instruments (Note 20) | 69.0 | 183.0 |
Income taxes payable | 320.3 | 317.5 |
Other current liabilities (Note 12) | 1,687.9 | 1,417.6 |
Total current liabilities | 9,829.4 | 10,888.9 |
Long-term debt, less current portion (Note 13) | 3,777.9 | 1,869.3 |
Accrued pension and other post-retirement benefits, less current portion (Note 18) | 282.0 | 160.8 |
Derivative financial instruments (Note 20) | 68.1 | 227.7 |
Deferred income taxes (Note 17) | 419.7 | 130.5 |
Other liabilities | 477.2 | 358.0 |
Commitments and contingent liabilities (Note 15) | ||
Stockholders’ equity (Note 16): | ||
Ordinary shares, $1.00 and €0.7625 par values in 2017 and 2016, respectively; 525.0 and 119.2 shares authorized in 2017 and 2016, respectively; 465.1 and 119.2 shares issued in 2017 and 2016, respectively; 2.1 and 3.2 shares canceled in 2017 and 2016, respectively; 465.1 and 118.9 shares outstanding in 2017 and 2016, respectively | 465.1 | 114.7 |
Ordinary shares held in employee benefit trust, at cost; 0.1 shares in 2017 | (4.8) | 0.0 |
Treasury stock, at cost; 0.0 shares and 0.3 shares in 2017 and 2016, respectively | 0.0 | (44.5) |
Capital in excess of par value of ordinary shares | 10,483.3 | 2,683.1 |
Retained earnings | 3,448.0 | 3,404.1 |
Accumulated other comprehensive loss | (1,003.7) | (1,101.6) |
Total TechnipFMC plc stockholders’ equity | 13,387.9 | 5,055.8 |
Noncontrolling interests | 21.5 | (11.7) |
Total equity | 13,409.4 | 5,044.1 |
Total liabilities and equity | $ 28,263.7 | $ 18,679.3 |
Consolidated Balance Sheets (Parenthetical) $ in Millions |
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2016
€ / shares
|
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Receivables, allowances | $ | $ 117.4 | $ 85.6 | |
Ordinary shares, par value (in dollars/EURO per share) | (per share) | $ 1.00 | € 0.7625 | |
Ordinary shares, shares authorized (in shares) | 525,000,000 | 119,200,000.0 | |
Ordinary shares, shares issued (in shares) | 465,100,000 | 119,200,000 | |
Ordinary shares, shares outstanding (in shares) | 465,100,000 | 118,900,000 | |
Canceled shares (in shares) | 2,100,000 | 3,200,000 | |
Ordinary shares, held in employee benefit trust (in shares) | 100,000 | 0 | |
Treasury stock, at cost (in shares) | 0 | 300,000 |
Consolidated Statements Of Cash Flows - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Cash provided (required) by operating activities: | |||
Net income | $ 134.2 | $ 371.1 | $ 14.0 |
Adjustments to reconcile net income to cash provided (required) by operating activities: | |||
Depreciation | 370.2 | 283.2 | 315.3 |
Amortization | 244.5 | 17.5 | 23.4 |
Employee benefit plan and share-based compensation costs | 18.7 | 27.4 | 57.2 |
Deferred income tax provision (benefit), net | 141.6 | (172.1) | (64.1) |
Unrealized loss (gain) on derivative instruments and foreign exchange | (73.5) | (123.2) | (30.2) |
Impairments (Note 5) | 34.3 | 38.2 | 45.2 |
Income from equity affiliates, net of dividends received | (37.9) | (48.1) | (26.3) |
Other | 4.7 | 161.8 | 140.1 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Trade receivables, net and costs in excess of billings | 286.8 | (268.7) | 232.7 |
Inventories, net | 130.9 | 172.7 | (128.3) |
Accounts payable, trade | (525.8) | 115.5 | 125.6 |
Billings in excess of costs | (1,111.4) | (498.3) | (408.2) |
Income taxes payable (receivable), net | (152.2) | 71.7 | 8.8 |
Other assets and liabilities, net | 745.6 | 345.1 | 395.1 |
Cash provided (required) by operating activities | 210.7 | 493.8 | 700.3 |
Cash provided (required) by investing activities: | |||
Capital expenditures | (255.7) | (312.9) | (325.5) |
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. (Note 2) | 1,479.2 | 0.0 | 0.0 |
Cash acquired upon consolidation of investee | 0.0 | 3,480.7 | 0.0 |
Cash divested from deconsolidation | 0.0 | (89.1) | 0.0 |
Proceeds from sale of assets | 14.4 | 39.2 | 27.1 |
Other | 12.1 | (7.4) | (36.7) |
Cash provided (required) by investing activities | 1,250.0 | 3,110.5 | (335.1) |
Cash provided (required) by financing activities: | |||
Net increase (decrease) in short-term debt | (106.4) | 8.6 | 12.0 |
Net increase (decrease) in commercial paper | 234.9 | 0.0 | 48.8 |
Proceeds from issuance of long-term debt | 25.7 | 644.5 | 31.5 |
Repayments of long-term debt | (888.0) | (891.2) | (219.1) |
Purchase of treasury stock | (58.5) | (186.8) | 0.0 |
Dividends paid | (60.6) | (111.5) | (98.7) |
Payments related to taxes withheld on share-based compensation | (46.6) | 0.0 | 0.0 |
Settlements of mandatorily redeemable financial liability | (156.5) | 0.0 | 0.0 |
Other | 1.2 | 1.8 | 98.3 |
Cash provided (required) by financing activities | (1,054.8) | (534.6) | (127.2) |
Effect of changes in foreign exchange rates on cash and cash equivalents | 62.2 | 21.6 | (320.6) |
Increase (decrease) in cash and cash equivalents | 468.1 | 3,091.3 | (82.6) |
Cash and cash equivalents, beginning of year | 6,269.3 | 3,178.0 | 3,260.6 |
Cash and cash equivalents, end of year | 6,737.4 | 6,269.3 | 3,178.0 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest (net of interest capitalized) | 50.3 | 40.2 | 61.0 |
Cash paid for income taxes (net of refunds received) | $ 424.7 | $ 261.3 | $ 188.4 |
Consolidated Statements of Changes in Stockholders Equity € in Millions, $ in Millions |
USD ($) |
EUR (€) |
Ordinary Shares Issued
USD ($)
|
Ordinary Shares Held In Treasury And Employee Benefit Trust [Member]
USD ($)
|
Capital in Excess of Par Value of Ordinary Shares
USD ($)
|
Retained Earnings
USD ($)
|
Accumulated Other Comprehensive Income (Loss)
USD ($)
|
Noncontrolling Interest
USD ($)
|
---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2014 | $ 5,296.2 | $ 110.2 | $ (127.4) | $ 2,451.9 | $ 3,559.1 | $ (711.9) | $ 14.3 | |
Net income | 14.0 | 14.4 | (0.4) | |||||
Other comprehensive income | (375.7) | (373.1) | (2.6) | |||||
Treasury shares (Note 16) | 6.8 | 46.3 | (39.5) | |||||
Net capital transactions | 280.4 | 4.3 | 276.1 | |||||
Dividends (Note 16) | (300.1) | € (225.8) | (300.1) | |||||
Share-based compensation (Note 19) | 36.1 | 36.1 | ||||||
Other | (1.3) | 0.8 | (2.1) | |||||
Ending balance at Dec. 31, 2015 | 4,956.4 | 114.5 | (81.1) | 2,725.4 | 3,273.4 | (1,085.0) | 9.2 | |
Net income | 371.1 | 393.3 | (22.2) | |||||
Other comprehensive income | (15.3) | (16.6) | 1.3 | |||||
Treasury shares (Note 16) | 5.5 | 36.6 | (31.1) | |||||
Net capital transactions | (34.9) | 0.2 | (35.1) | |||||
Dividends (Note 16) | (262.6) | € (236.6) | (262.6) | |||||
Share-based compensation (Note 19) | 22.0 | 22.0 | ||||||
Other | 1.9 | 1.9 | 0.0 | |||||
Ending balance at Dec. 31, 2016 | 5,044.1 | 114.7 | (44.5) | 2,683.1 | 3,404.1 | (1,101.6) | (11.7) | |
Net income | 134.2 | 113.3 | 20.9 | |||||
Other comprehensive income | 98.3 | 97.9 | 0.4 | |||||
Issuance of ordinary shares due to the merger of FMC Technologies and Technip | 8,170.7 | 351.9 | (6.6) | 7,825.4 | ||||
Cancellation of treasury shares due to the merger of FMC Technologies and Technip | 21.2 | 44.5 | (23.3) | |||||
Cancellation of treasury shares (Note 16) | (58.5) | (2.1) | (47.6) | (8.8) | ||||
Net sales of ordinary shares for employee benefit trust | 1.8 | 1.8 | ||||||
Net capital transactions | 1.2 | 0.6 | 0.6 | |||||
Dividends (Note 16) | (60.6) | (60.6) | ||||||
Share-based compensation (Note 19) | 44.4 | 44.4 | ||||||
Other | 12.6 | 0.7 | 11.9 | |||||
Ending balance at Dec. 31, 2017 | $ 13,409.4 | $ 465.1 | $ (4.8) | $ 10,483.3 | $ 3,448.0 | $ (1,003.7) | $ 21.5 |
Basis of Presentation and Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations—TechnipFMC plc and consolidated subsidiaries (“TechnipFMC,” “we,” “us” or “our”) is a global leader in oil and gas projects, technologies, systems and services through our business segments: Subsea, Onshore/Offshore and Surface Technologies. We have manufacturing operations worldwide, strategically located to facilitate delivery of our products, systems and services to our customers. Basis of presentation—Our consolidated financial statements were prepared in U.S. dollars and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to annual financial information. In this Annual Report on Form 10-K, we are reporting the results of our operations for the year ended December 31, 2017, which consist of the combined results of operations of Technip S.A. (“Technip”) and FMC Technologies, Inc. (“FMC Technologies”). Due to the merger of FMC Technologies and Technip, FMC Technologies’ results of operations have been included in our financial statements for periods subsequent to the consummation of the merger on January 16, 2017. Since TechnipFMC is the successor company to Technip, we are presenting the results of Technip’s operations for the years ended December 31, 2016 and December 31, 2015 and as of December 31, 2016. Refer to Note 2 for further information related to the merger of FMC Technologies and Technip. Principles of consolidation—The consolidated financial statements include the accounts of TechnipFMC and its majority-owned subsidiaries and affiliates. Intercompany accounts and transactions are eliminated in consolidation. Use of estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Such estimates include, but are not limited to, estimates of total contract profit or loss on long-term construction-type contracts; estimated realizable value on excess and obsolete inventory; estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimate of fair value in business combinations and estimates related to income taxes. Investments in the common stock of unconsolidated affiliates—The equity method of accounting is used to account for investments in unconsolidated affiliates where we can have the ability to exert significant influence over the affiliates operating and financial policies. The cost method of accounting is used where significant influence over the affiliate is not present. For certain construction joint ventures, we use the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying consolidated financial statements. Investments in unconsolidated affiliates are assessed for impairment whenever events or changes in facts and circumstances indicate the carrying value of the investments may not be fully recoverable. When such a condition is subjectively determined to be other than temporary, the carrying value of the investment is written down to fair value. Management’s assessment as to whether any decline in value is other than temporary is based on our ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. Management generally considers our investments in equity method investees to be strategic, long-term investments and completes its assessments for impairment with a long-term viewpoint. Investments in which ownership is less than 20% or that do not represent significant investments are reported in other assets on the consolidated balance sheets. Where no active market exists and where no other valuation method can be used, these financial assets are maintained at historical cost, less any accumulated impairment losses. We determine whether investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if we are the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb significant losses of or the right to receive significant benefits from the VIE. If we are deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. Our unconsolidated VIEs are accounted for using the equity method of accounting. Business combinations—Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their respective fair values as of the acquisition date. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. The purchase price is allocated to the assets, assumed liabilities and identifiable intangible assets based on their estimated fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Transaction related costs are expensed as incurred. Revenue recognition—Revenue is generally recognized once the following four criteria are met: i) persuasive evidence of an arrangement exists, ii) delivery of the equipment has occurred (which is upon shipment or when customer-specific acceptance requirements are met) or services have been rendered, iii) the price of the equipment or service is fixed or determinable, and iv) collectibility is reasonably assured. We record our sales net of any value added, sales or use tax. For certain construction-type manufacturing and assembly projects that involve significant design and engineering efforts to satisfy detailed customer specifications, revenue is recognized using the percentage of completion method of accounting. Under the percentage of completion method, revenue is recognized as work progresses on each contract. We apply the ratio of costs incurred to date to total estimated contract costs at completion or on physical progress defined for the main deliverables under the contracts. If it is not possible to form a reliable estimate of progress toward completion, no revenue or costs are recognized until the project is complete or substantially complete. Any expected losses on construction-type contracts in progress are charged to earnings, in total, in the period the losses are identified. Modifications to construction-type contracts, referred to as “change orders,” effectively change the provisions of the original contract, and may, for example, alter the specifications or design, method or manner of performance, equipment, materials, sites and/or period for completion of the work. If a change order represents a firm price commitment from a customer, we account for the revised estimate as if it had been included in the original estimate, effectively recognizing the pro rata impact of the new estimate on our calculation of progress toward completion in the period in which the firm commitment is received. If a change order is unpriced: (1) we include the costs of contract performance in our calculation of progress toward completion in the period in which the costs are incurred or become probable; and (2) when it is determined that the revenue is probable of recovery, we include the change order revenue, limited to the costs incurred to date related to the change order, in our calculation of progress toward completion. Unpriced change orders included in revenue were immaterial to our consolidated revenue for all periods presented. Margin is not recorded on unpriced change orders unless realization is assured beyond a reasonable doubt. The assessment of realization may be based upon our previous experience with the customer or based upon our receipt of a firm price commitment from the customer. Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Revenue in excess of progress billings are reported in costs and estimated earnings in excess of billings on uncompleted contracts in our consolidated balance sheets. Progress billings and cash collections in excess of revenue recognized on a contract are classified as billings in excess of costs and estimated earnings on uncompleted contracts and advance payments, respectively, in our consolidated balance sheets. Our operating profit for the year ended December 31, 2017 was positively impacted by approximately $378.4 million, as a result of changes in contract estimates related to projects that were in progress at December 31, 2016. During the year ended December 31, 2017, we recognized favorable changes in our estimates which had an impact on our margin in the amounts of $325.0 million and $53.4 million in our Onshore/Offshore and Subsea segment’s, respectively. The changes in contract estimates are attributed to better than expected performance throughout our execution of our projects. Cash equivalents—Cash equivalents are highly-liquid, short-term instruments with original maturities of generally three months or less from their date of purchase. Trade receivables, net of allowances—An allowance for doubtful accounts is provided on receivables equal to the estimated uncollectible amounts. This estimate is based on historical collection experience and a specific review of each customer’s receivables balance. Inventories—Inventories are stated at the lower of cost or net realizable value, except as it relates to inventory measured using the last-in, first-out (“LIFO”) method, for which the inventories are stated at the lower of cost or market. Inventory costs include those costs directly attributable to products, including all manufacturing overhead, but excluding costs to distribute. Cost for a significant portion of the U.S. domiciled inventories is determined on the LIFO method. The first-in, first-out (“FIFO”) or weighted average methods are used to determine the cost for the remaining inventories. Write-down on inventories are recorded when the net realizable value of inventories is lower than their net book value. Property, plant and equipment—Property, plant, and equipment is recorded at cost. Depreciation is principally provided on the straight-line basis over the estimated useful lives of the assets (vessels—10 to 30 years; buildings—10 to 50 years; and machinery and equipment—3 to 20 years). Gains and losses are realized upon the sale or retirement of assets and are recorded in other income (expense), net on our consolidated statements of income. Maintenance and repair costs are expensed as incurred. Expenditures that extend the useful lives of property, plant and equipment are capitalized and depreciated over the estimated new remaining life of the asset. Impairment of property, plant and equipment—Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying value of the long-lived asset may not be recoverable. The carrying value of an asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the impairment loss is measured as the amount by which the carrying value of the long-lived asset exceeds its fair value. Long-lived assets classified as held for sale are reported at the lower of carrying value or fair value less cost to sell. Goodwill—Goodwill is not subject to amortization but is tested for impairment on an annual basis (or more frequently if impairment indicators arise) by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. A reporting unit is defined as an operating segment or one level below the operating segment. We have established October 31 as the date of our annual test for impairment of goodwill. Reporting units with goodwill are tested for impairment using a quantitative impairment test known as the income approach, which estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we use estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and cash expenditures. Future revenues are also adjusted to match changes in our business strategy. If the fair value of the reporting unit is less than its carrying amount as a result of this method, then an impairment loss is recorded. A lower fair value estimate in the future for any of our reporting units could result in goodwill impairments. Factors that could trigger a lower fair value estimate include sustained price declines of the reporting unit’s products and services, cost increases, regulatory or political environment changes, changes in customer demand, and other changes in market conditions, which may affect certain market participant assumptions used in the discounted future cash flow model. Intangible assets—Our acquired intangible assets are generally amortized on a straight-line basis over their estimated useful lives, which generally range from 2 to 20 years. Our acquired intangible assets do not have indefinite lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the intangible asset may not be recoverable. The carrying amount of an intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the intangible asset exceeds its fair value. Capitalized software costs are recorded at cost. Capitalized software costs include purchases of software and internal and external costs incurred during the application development stage of software projects. These costs are amortized on a straight-line basis over the estimated useful lives. For internal use software, the useful lives range from three to ten years. For Internet website costs, the estimated useful lives do not exceed three years. Debt instruments—Debt instruments include convertible and synthetic bonds, senior and private placement notes and other borrowings. Issuance fees and redemption premium on debt instruments are included in the cost of debt in the consolidated balance sheets, as an adjustment to the nominal amount of the debt. Loan origination costs for revolving credit facilities are recorded as an asset and amortized over the life of the underlying debt. Fair value measurements—Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The fair value framework requires the categorization of assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities, with the exception of certain assets and liabilities measured using the net asset value practical expedient, which are not required to be leveled. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
Income taxes—Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance is established whenever management believes that it is more likely than not that deferred tax assets may not be realizable. Income taxes are not provided on our equity in undistributed earnings of foreign subsidiaries or affiliates to the extent we have determined that the earnings are indefinitely reinvested. Income taxes are provided on such earnings in the period in which we can no longer support that such earnings are indefinitely reinvested. Tax benefits related to uncertain tax positions are recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We classify interest expense and penalties recognized on underpayments of income taxes as income tax expense. Share-based employee compensation—The measurement of share-based compensation expense on restricted share awards and performance share awards is based on the market price at the grant date and the number of shares awarded. We used the Cox Ross Rubinstein binomial model to measure the fair value of stock options granted prior to December 31, 2016 and Black-Scholes options pricing model to measure the fair value of stock options granted on or after January 1, 2017. The stock-based compensation expense for each award is recognized ratably over the applicable service period or the period beginning at the start of the service period and ending when an employee becomes eligible for retirement, after taking into account estimated forfeitures,. Ordinary shares held in employee benefit trust—Our ordinary shares are purchased by the plan administrator of the FMC Technologies, Inc. Non-Qualified Savings and Investment Plan and placed in a trust that we own. Purchased shares are recorded at cost and classified as a reduction of stockholders’ equity on the consolidated balance sheets. Treasury shares—Treasury shares held are recorded as a reduction to stockholders’ equity using the cost method. Any gain or loss related to the sale of treasury shares is included in stockholders’ equity. Canceled treasury shares are accounted for using the constructive retirement method. For shares repurchased in excess of par, we allocate the value to capital in excess of par value of ordinary shares and retained earnings, if any, using the weighted average method to identify the net original issue proceeds to the cost of the shares repurchased. Earnings per ordinary share (“EPS”)—Basic EPS is computed using the weighted-average number of ordinary shares outstanding during the year. We use the treasury stock method to compute diluted EPS which gives effect to the potential dilution of earnings that could have occurred if additional shares were issued for awards granted under our incentive compensation and stock plan. The treasury stock method assumes proceeds that would be obtained upon exercise of awards granted under our incentive compensation and stock plan are used to purchase outstanding ordinary shares at the average market price during the period. Convertible bonds that could be converted into or be exchangeable for new or existing shares would additionally result in a dilution of earnings per share. The ordinary shares assumed to be converted as of the issuance date are included to compute diluted EPS under the if-converted method. Additionally, the net profit of the period is adjusted as if converted for the after-tax interest expense related to these dilutive shares. Foreign currency—Financial statements of operations for which the U.S. dollar is not the functional currency, and which are located in non-highly inflationary countries, are translated into U.S. dollars prior to consolidation. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date, while income statement accounts are translated at the average exchange rate for each period. For these operations, translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity until the foreign entity is sold or liquidated. For operations in highly inflationary countries and where the local currency is not the functional currency, inventories, property, plant and equipment, and other non-current assets are converted to U.S. dollars at historical exchange rates, and all gains or losses from conversion are included in net income. Foreign currency effects on cash, cash equivalents and debt in hyperinflationary economies are included in interest income or expense. For certain committed and anticipated future cash flows and recognized assets and liabilities which are denominated in a foreign currency, we may choose to manage our risk against changes in the exchange rates, when compared against the functional currency, through the economic netting of exposures instead of derivative instruments. Cash outflows or liabilities in a foreign currency are matched against cash inflows or assets in the same currency, such that movements in exchanges rates will result in offsetting gains or losses. Due to the inherent unpredictability of the timing of cash flows, gains and losses in the current period may be economically offset by gains and losses in a future period. All gains and losses are recorded in our consolidated statements of income in the period in which they are incurred. Gains and losses from the remeasurement of assets and liabilities are recognized in other income (expense), net. Derivative instruments—Derivatives are recognized on the consolidated balance sheets at fair value, with classification as current or non-current based upon the maturity of the derivative instrument. Changes in the fair value of derivative instruments are recorded in current earnings or deferred in accumulated other comprehensive income (loss), depending on the type of hedging transaction and whether a derivative is designated as, and is effective as, a hedge. Each instrument is accounted for individually and assets and liabilities are not offset. Hedge accounting is only applied when the derivative is deemed to be highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive income (loss) until the underlying transactions are recognized in earnings. At such time, related deferred hedging gains or losses are recorded in earnings on the same line as the hedged item. Effectiveness is assessed at the inception of the hedge and on a quarterly basis. Effectiveness of forward contract cash flow hedges are assessed based solely on changes in fair value attributable to the change in the spot rate. The change in the fair value of the contract related to the change in forward rates is excluded from the assessment of hedge effectiveness. Changes in this excluded component of the derivative instrument, along with any ineffectiveness identified, are recorded in earnings as incurred. We document our risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. We also use forward contracts to hedge foreign currency assets and liabilities, for which we do not apply hedge accounting. The changes in fair value of these contracts are recognized in other income (expense), net on our consolidated statements of income, as they occur and offset gains or losses on the remeasurement of the related asset or liability. |
Merger of FMC Technologies and Technip |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MERGER OF FMC TECHNOLOGIES AND TECHNIP | MERGER OF FMC TECHNOLOGIES AND TECHNIP Description of the merger of FMC Technologies and Technip On June 14, 2016, FMC Technologies and Technip entered into a definitive business combination agreement providing for the business combination among FMC Technologies, FMC Technologies SIS Limited, a private limited company incorporated under the laws of England and Wales and a wholly-owned subsidiary of FMC Technologies, and Technip. On August 4, 2016, the legal name of FMC Technologies SIS Limited was changed to TechnipFMC Limited, and on January 11, 2017, was subsequently re-registered as TechnipFMC plc, a public limited company incorporated under the laws of England and Wales. On January 16, 2017, the business combination was completed. Pursuant to the terms of the definitive business combination agreement, Technip merged with and into TechnipFMC, with TechnipFMC continuing as the surviving company (the “Technip Merger”), and each ordinary share of Technip (the “Technip Shares”), other than Technip Shares owned by Technip or its wholly-owned subsidiaries, were exchanged for 2.0 ordinary shares of TechnipFMC, subject to the terms of the definitive business combination agreement. Immediately following the Technip Merger, a wholly-owned indirect subsidiary of TechnipFMC (“Merger Sub”) merged with and into FMC Technologies, with FMC Technologies continuing as the surviving company and as a wholly-owned indirect subsidiary of TechnipFMC (the “FMCTI Merger”), and each share of common stock of FMC Technologies (the “FMCTI Shares”), other than FMCTI Shares owned by FMC Technologies, TechnipFMC, Merger Sub or their wholly-owned subsidiaries, were exchanged for 1.0 ordinary share of TechnipFMC, subject to the terms of the definitive business combination agreement. Under the acquisition method of accounting, Technip was identified as the accounting acquirer and acquired a 100% interest in FMC Technologies. The merger of FMC Technologies and Technip (the “Merger”) has created a larger and more diversified company that is better equipped to respond to economic and industry developments and better positioned to develop and build on its offerings in the subsea, surface, and onshore/offshore markets as compared to the former companies on a standalone basis. More importantly, the Merger has brought about the ability of the combined company to (i) standardize its product and service offerings to customers, (ii) reduce costs to customers, and (iii) provide integrated product offerings to the oil and gas industry with the aim to innovate the markets in which the combined company operates. We incurred merger transaction and integration costs of $101.8 million and $92.6 million during the years ended December 31, 2017 and 2016, respectively. Description of FMC Technologies as Accounting Acquiree FMC Technologies is a global provider of technology solutions for the energy industry. FMC Technologies designs, manufactures and services technologically sophisticated systems and products, including subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems for the energy industry. Subsea systems produced by FMC Technologies are used in the offshore production of crude oil and natural gas and are placed on the seafloor to control the flow of crude oil and natural gas from the reservoir to a host processing facility. Additionally, FMC Technologies provides a full range of drilling, completion and production wellhead systems for both standard and custom-engineered applications. Surface wellhead production systems, or trees, are used to control and regulate the flow of crude oil and natural gas from the well and are used in both onshore and offshore applications. Consideration Transferred The acquisition-date fair value of the consideration transferred consisted of the following:
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Assets Acquired and Liabilities Assumed The following table summarizes the final allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date:
Segment Allocation of Goodwill The final allocation of goodwill to the reporting segments based on the final valuation is as follows:
Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined company, which are further described above. Goodwill recognized as a result of the acquisition is not deductible for tax purposes. Acquired Identifiable Intangible Assets The identifiable intangible assets acquired include the following:
FMC Technologies’ results of operations have been included in our financial statements for periods subsequent to the consummation of the Merger on January 16, 2017. FMC Technologies contributed revenues and a net loss of $3,441.1 million and $251.2 million, respectively, for the period from January 17, 2017 through December 31, 2017. Pro Forma Impact of the Merger (unaudited) The following unaudited supplemental pro forma results present consolidated information as if the Merger had been completed as of January 1, 2016. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the Merger. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the Merger had been consummated as of January 1, 2016, nor are they indicative of future results. For comparative purposes, the weighted average shares outstanding used for the diluted earnings per share calculation for the year ended December 31, 2017 was also used to calculate the diluted earnings per share for the year ended December 31, 2016.
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New Accounting Standards |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards Effective January 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Among other amendments, this update requires that excess tax benefits or deficiencies be recognized as income tax expense or benefit in the income statement and eliminates the requirement to reclassify excess tax benefits and deficiencies from operating activities to financing activities in the statement of cash flows. This updated guidance also gives an entity the election to either (i) estimate the forfeiture rate of employee stock-based awards or (ii) account for forfeitures as they occur. We elected to retrospectively classify excess tax benefits and deficiencies as operating activity and these amounts, which were immaterial for all periods presented, are reflected in the income taxes payable, net line item in the accompanying consolidated statement of cash flows. In addition, we elected to continue to estimate forfeitures on the grant date to account for the estimated number of awards for which the requisite service period will not be rendered. The adoption of this update did not have a material impact on our consolidated financial statements. Effective January 1, 2017, we adopted ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This update requires in scope inventory to be measured at the lower of cost or net realizable value rather than at the lower of cost or market under existing guidance. We adopted the updated guidance prospectively. The adoption of this update did not have a material impact on our consolidated financial statements. Effective January 1, 2017, we adopted ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” This update states that substantial doubt exists if it is probable that an entity will be unable to meet its current and future obligations. Disclosures are required if conditions give rise to substantial doubt. However, management will need to assess if its plans will alleviate substantial doubt to determine the specific disclosures. The Company adopted this standard in 2017 and management does not believe there is substantial doubt about the entity's ability to continue as a going concern. Effective September 30, 2017, we early adopted ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” This update eliminates step two from the goodwill impairment test. An annual or interim goodwill test should be performed by comparing the fair value of a reporting unit with its carrying amount. Income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should also be considered when measuring any applicable goodwill impairment loss. This updated guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and if it fails that qualitative assessment, to perform step two of the goodwill impairment test. Any goodwill amount allocated to a reporting unit with a zero or negative carrying amount net of assets is required to be disclosed. The adoption of this update did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU will supersede most existing GAAP related to revenue recognition and will supersede some cost guidance in existing GAAP related to construction-type and production-type contract accounting. Additionally, the ASU will significantly increase disclosures related to revenue recognition. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU No. 2014-09 by one year, and as a result, is now effective for us on January 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. Early application is permitted to the original effective date of January 1, 2017. Entities are permitted to apply the amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The new standard requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time based on when control of goods and services transfer to a customer. As a result, we expect changes in the presentation of our financial statements, including: (1) timing of revenue recognition, and (2) changes in classification between revenue and costs. We have performed a detailed review of our contract portfolio representative of our different businesses and compared historical accounting policies and practices to the new standard. Over the course of 2017, we have formed an implementation work team, conducted training for the relevant staff regarding a detailed overview of the key changes within the new standard. We have engaged external resources to assist us in our efforts of establishing new policies, procedures, and controls, establishing appropriate presentation and disclosure changes. We adopted new revenue recognition guidance using the modified retrospective transition method effective for the quarter ending March 31, 2018, applying the guidance to contracts with customers that were not substantially complete as of January 1, 2018. Our financial results for reporting periods after January 1, 2018 will be presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and our historical accounting policy. We have evaluated the impact of the new guidance on a substantial portion our contracts with customers, including identification of differences that will result from the new requirements. Based on the analysis performed to date, we do not anticipate any significant changes in our revenue recognition and do not believe that the guidance surrounding identification of contracts and performance obligations or measurement of variable consideration will have a material impact on the revenue recognition for these arrangements. We expect our disclosures related to revenue recognition will expand to address new quantitative and qualitative requirements regarding the nature, amount and timing of revenue from contracts with customers and additional information related to contract assets and liabilities. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This update addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other amendments, this update requires equity investments not accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This updated guidance also simplifies the impairment assessment of equity investments without readily determinable fair values and eliminates the requirement to disclose significant assumptions and methods used to estimate the fair value of financial instruments measured at amortized cost. The updated guidance further requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this ASU are effective for us on January 1, 2018. All amendments are required to be adopted on a modified retrospective basis, with two exceptions. The amendments related to equity investments without readily determinable fair values and the requirement to use an exit price notion are required to be adopted prospectively. Early adoption is not permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. On February 28, 2018 the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments-Overall(Subtopic825-10):Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10).” These amendments clarify the guidance in ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10), on the following issues (among other things): Equity Securities without a Readily Determinable Fair Value-Discontinuation; Equity Securities without a Readily Determinable Fair Value- Adjustments; Forward Contracts and Purchase Options; Presentation Requirements for Certain Fair Value Option Liabilities; Fair Value Option Liabilities Denominated in a Foreign Currency; Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendments in this ASU are effective for us January 1, 2018 in conjunction with the adoption of ASU 2016-01. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. Early application is permitted. Entities are required to use a modified retrospective adoption, with certain relief provisions, for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements when adopted. The guidance will become effective for us on January 1, 2019. The impacts that adoption of the ASU is expected to have on our consolidated financial statements and related disclosures are being evaluated. Additionally, we have not determined the effect of the ASU on our internal control over financial reporting or other changes in business practices and processes. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses.” This update introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The updated guidance applies to (i) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (ii) loan commitments and other off-balance sheet credit exposures, (iii) debt securities and other financial assets measured at fair value through other comprehensive income, and (iv) beneficial interests in securitized financial assets. The amendments in this ASU are effective for us on January 1, 2020 and are required to be adopted on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” This update amends the existing guidance for the statement of cash flows and provides guidance on eight classification issues related to the statement of cash flows. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted retrospectively. For issues that are impracticable to adopt retrospectively, the amendments may be adopted prospectively as of the earliest date practicable. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” This update requires that income tax consequences are recognized on an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted on a modified retrospective basis. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business.” This update clarifies the definition of a business and provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, such set of assets is not a business. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted prospectively. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” This update defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sale of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The amendments in this ASU are effective for us January 1, 2018 and are required to be adopted with either a full retrospective approach or a modified retrospective approach. This ASU is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This update requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount of net benefit cost that is included in the income statement or capitalized in assets, by line item. The updated guidance requires employers to report the service cost component in the same line item(s) as other compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs from prior periods, and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The updated guidance also allows only the service cost component to be eligible for capitalization when applicable. The amendments in this ASU are effective for us on January 1, 2018. Early adoption is permitted. The guidance requires adoption on a retrospective basis for the presentation of the service cost component and the other components of net periodic pension cost and net periodic post-retirement benefit cost in the income statement and on a prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic post-retirement benefit in assets. We will adopt this ASU on January 1, 2018. This ASU is not expected to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting.” This update provides clarity on when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The amendments in this ASU are effective for us January 1, 2018 and are required to be adopted prospectively. We will adopt this ASU on January 1, 2018. This ASU is not expected to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This update improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments in this ASU are effective for us January 1, 2019. Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required to be adopted prospectively. We are currently evaluating the impact of this ASU on our consolidated financial statements. On February 14, 2018 the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI).” These amendments provide an option to reclassify stranded tax effects with AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate tax rate in the Tax Cuts and Jobs Act ( or portion thereof) is recorded. The ASU requires financial statement disclosures that indicate a description of the accounting policy for releasing income tax effects from AOCI; whether there is an election to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other income tax effects are reclassified. These amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this ASU are effective for us January 1, 2019. We are currently evaluating the impact of this ASU on our consolidated financial statements. |
Earnings Per Share |
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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:
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Impairment, Restructuring and Other Expense |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSE | IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSE Impairment, restructuring and other expense were as follows:
Asset impairments—We conduct impairment tests on long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition over the asset’s remaining useful life. Our review of recoverability of the carrying value of our assets considers several assumptions including the intended use and service potential of the asset. During 2017, our impairment expense was primarily related to leasehold improvements, decommissioning vacant buildings and other long-lived assets. During 2016 and 2015, our impairment expense was primarily associated with the restructuring plan discussed below. Restructuring and other—In July 2015, as a result of the decline in crude oil prices and its effect on the demand for products and services in the oilfield services industry worldwide, we initiated a company-wide reduction in workforce and facility consolidation (the “July 2015 Plan”) intended to reduce costs and better align our workforce with current and anticipated activity levels, which resulted in the continued recognition of severance costs relating to termination benefits and other restructuring charges. The initial plan included a workforce reduction of approximately 6,000 employees. A significant part of the restructuring plan was focused on the Onshore/Offshore segment. In this segment, we reduced our presence in North America, Latin America, Asia and Europe. In the Subsea segment, we reduced our presence in the North Sea. Additionally, during 2017 we initiated further cost cutting measures that have resulted in restructuring expense primarily related to termination of lease contracts. In the year ended December 31, 2016, as part of our restructuring plan, we divested and deconsolidated our wholly owned subsidiaries Technip Germany Holding GmBH and Technip Germany GmBH. |
Inventories |
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Inventory, Finished Goods and Work in Process, Gross [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following:
All amounts in the table above are reported net of obsolescence reserves of $70.8 million and $38.8 million at December 31, 2017 and 2016, respectively. Net inventories accounted for under the LIFO method totaled $300.9 million at December 31, 2017. There were no net inventories accounted for under the LIFO method at December 31, 2016. The current replacement costs of LIFO inventories exceeded their recorded values by $0.6 million at December 31, 2017. There was no reduction to the base LIFO inventory in 2017. |
Other Current Assets |
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OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consisted of the following:
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Equity Method Investments |
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EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS The equity method of accounting is used to account for investments in unconsolidated affiliates where we can have the ability to exert significant influence over the affiliates operating and financial policies. For certain construction joint ventures, we use the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. None of our proportionate consolidation investments, individually or in the aggregate, are significant to our consolidated results for 2017, 2016, or 2015. Our equity investments were as follows as of December 31, 2017:
Our income (loss) from equity affiliates included in each of our reporting segments was as follows:
Summarized financial information(2)—Summarized financial information for our equity method investments is presented below for 2016 and 2015. Our major equity method investments are as follows: Technip Odebrecht. Technip Odebrecht PLSV CV (“Technip Odebrecht”) is an affiliated company in the form of a joint venture between Technip SA and Odebrecht Oleo & Gas. Technip Odebrecht was formed in 2011 when awarded a contract to provide pipeline installation ships to state-controlled Petroleo Brasileiro SA (“Petrobras”) for their work in oil and gas fields offshore Brazil. We have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment. Dofcon. Dofcon Brasil AS (“Dofcon”) is an affiliated company in the form of a joint venture between Technip SA and DOF Subsea and was founded in 2006. Dofcon provides Pipe-Laying Support Vessels (PLSVs) for work in oil and gas fields offshore Brazil. Dofcon is considered a VIE because it does not have sufficient equity to finance its activities without additional subordinated financial. We are not the primarily 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. Serimax. Serimax Holdings SAS (“Serimax”) is an affiliated company in the form of a joint venture between Technip SA and Vallourec SA and was founded in 2016. Serimax is headquartered in Paris, France and provides rigid pipes welding services for work in oil and gas fields around the world. We have accounted for our 20% investment using the equity method of accounting with results reported in our Subsea segment. FSTP Brasil. FSTP Brasil Ltda. (“FSTP Brasil”) is an affiliated company in the form of a joint venture between Technip Brasil - Engenharia, Instalações e Apoio Marítimo Ltda. and Keppel FELS Brasil S.A. FSTP Brasil was formed in 2003 to operate in the engineering, construction, manufacture and repair of offshore platforms and vessels segments, especially for oil and natural gas companies. We have accounted for our 25% investment using the equity method of accounting with results reported in our Subsea segment. Yamgaz. In 2015, Yamgaz was an affiliated company in the form of a joint venture between Technip, JGC Corporation (“JGC”), and Chiyoda International Corporation (“Chiyoda”). Yamgaz was formed in 2013 when it was awarded a contract to carry out the engineering, procurement, supply, construction and commissioning of an integrated facility for natural gas liquefaction based on the resources of the South Tambey Gas Condensate field located on the Yamal Peninsula, Russia. In the fourth quarter of 2016, we obtained voting control interests in legal onshore/offshore contract entities which own and account for the design, engineering and construction of the Yamal LNG plant. Prior to the amendments of the contractual terms that provided us with voting interest control, we accounted for our 50% investment using the equity method of accounting with results reported in our Onshore/Offshore segment. Subsequent to this transaction we recorded the results in our consolidated financial information. The following table presents summarized financial information of the equity method investments:
(1) As discussed above, in the fourth quarter of 2016, we obtained the voting control interests of legal Onshore/Offshore entities that own and account for the design, engineering and construction of Yamal. As a result of the acquisition and consolidation, we recorded $3.5 billion in cash, $601.7 million in advances to suppliers, $71.1 million in intangibles, $3.8 billion in current liabilities, $191.2 million in noncurrent liabilities, and a $7.7 million gain. (2) As of December 31, 2017, our equity method investments were no longer significant individually or in the aggregate. As such, summarized financial information for 2017 is not presented. |
Related Party Transactions |
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RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Receivables, payables, revenues and expenses which are included in our consolidated financial statements for all transactions with related parties, defined as entities related to our directors and main shareholders as well as the partners of our consolidated joint ventures, were as follows:
A member of our Board of Directors serves on the board of directors of Anadarko and the table above includes trade receivable balances of $22.3 million from Anadarko at December 31, 2017 as well as $42.5 million from TP JGC Coral France SNC and $13.8 million from Technip Odebrecht PLSV CV, as both companies are equity method affiliates. The trade receivables balance at December 31, 2016 includes $98.8 million and $25.8 million from Dofcon Brasil AS and Technip Odebrecht PLSV CV, respectively, both are equity method affiliates. The balance in trade payables includes $52.4 million to JGC Corporation and $48.3 million to Chiyoda, both JV partners on our Yamal project, at December 31, 2017. The trade payables balance at December 31, 2016 includes $50.3 million and $64.3 million to JGC Corporation and Chiyoda, respectively, and $46.0 million to Heerema, a joint venture partner of one of our consolidated subsidiaries. The note receivables balance includes $114.9 million and $104.2 million with Dofcon Brasil AS at December 31, 2017 and 2016, respectively. Dofcon Brasil AS is a VIE and accounted for as an equity method affiliate. These are included in other noncurrent assets on our consolidated balance sheets.
Revenue in the table above includes $111.3 million from Anadarko and $69.9 million from TP JGC Coral France SNC, an equity method affiliate, during the year ended December 31, 2017. Revenue for the years ended December 31, 2016 and 2015 included $196.7 million and $272.4 million, respectively, from Yamgaz, which was an equity method affiliate during that time. Expense activity for the year ended December 31, 2017 includes $46.8 million to JGC Corporation and $44.1 million to Chiyoda. Expense activity for the year ended December 31, 2016 includes $71.3 million to Heerema. For the year ended December 31, 2015, there was no expense activity with an individually significant related party. |
Property, Plant And Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following:
Depreciation expense was $370.2 million, $283.2 million and $315.3 million in 2017, 2016 and 2015, respectively. The amount of interest cost capitalized was not material for the years presented. |
Goodwill And Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill—We record goodwill as the excess of the purchase price over the fair value of the net assets acquired in acquisitions accounted for under the purchase method of accounting. We test goodwill for impairment annually, or more frequently if circumstances indicate possible impairment. We identify a potential impairment by comparing the fair value of the applicable reporting unit to its net book value, including goodwill. If the net book value exceeds the fair value of the reporting unit, we measure the impairment by comparing the carrying value of the reporting unit to its fair value. We test our goodwill for impairment by comparing the fair value of each of our reporting units to their net carrying value as of October 31 of each year. Our impairment analysis is quantitative; however, it includes subjective estimates based on assumptions regarding future growth rates, interest rates and operating expenses. A lower fair value estimate in the future for any of our reporting units could result in goodwill impairments. Factors that could trigger a lower fair value estimate include sustained price declines of the reporting unit’s products and services, cost increases, regulatory or political environment changes, changes in customer demand, and other changes in market conditions, which may affect certain market participant assumptions used in the discounted future cash flow model based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach). The income approach estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we use estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and cash expenditures. Future revenues are also adjusted to match changes in our business strategy. We believe this approach is an appropriate valuation method. The risk-adjusted discount rate applied to our future cash flows was 10.8%. The excess of fair value over carrying amount for our reporting units ranged from approximately 15% to in excess of 200% of the respective carrying amounts. The carrying amount of goodwill by reporting segment was as follows:
Intangible assets—The components of intangible assets were as follows:
In connection with the Merger, we recorded identifiable intangible assets acquired. Refer to Note 2 to these consolidated financial statements for additional information regarding the Merger. All of our acquired identifiable intangible assets are subject to amortization and, where applicable, foreign currency translation adjustments. We recorded $244.5 million, $17.5 million and $23.4 million in amortization expense related to intangible assets during the years ended December 31, 2017, 2016 and 2015, respectively. During the years 2018 through 2022, annual amortization expense is expected to be as follows: $173.5 million in 2018, $124.1 million in 2019, $114.8 million in 2020, $109.1 million in 2021, $106.6 million in 2022 and $705.7 million thereafter. |
Other Current Liabilities |
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Other Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following:
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Debt |
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Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Short-term debt and current portion of long-term debt—Short-term debt and current portion of long-term debt consisted of the following:
Long-term debt—Long-term debt consisted of the following:
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Maturities of debt as of December 31, 2017, are payable as follows:
Revolving credit facility—On January 17, 2017, we acceded to a new $2.5 billion senior unsecured revolving credit facility agreement (“facility agreement”) between FMC Technologies, Inc. and Technip Eurocash SNC (the “Borrowers”) with JPMorgan Chase Bank, National Association, as agent and an arranger, SG Americas Securities LLC as an arranger, and the lenders party thereto. The facility agreement provides for the establishment of a multicurrency, revolving credit facility, which includes a $1.5 billion letter of credit subfacility. Subject to certain conditions, the Borrowers may request the aggregate commitments under the facility agreement be increased by an additional $500.0 million. The facility expires in January 2022. Borrowings under the facility agreement bear interest at the following rates, plus an applicable margin, depending on currency:
Depending on the credit rating of TechnipFMC, the applicable margin for revolving loans varies (i) in the case of Adjusted LIBOR and EURIBOR loans, from 0.820% to 1.300% and (ii) in the case of base rate loans, from 0.000% to 0.300%. The “base rate” is the highest of (a) the prime rate announced by JPMorgan, (b) the greater of the Federal Funds Rate and the Overnight Bank Funding Rate plus 0.5% or (c) one-month Adjusted LIBOR plus 1.0%. The facility agreement contains usual and customary covenants, representations and warranties and events of default for credit facilities of this type, including financial covenants requiring that our total capitalization ratio not exceed 60% at the end of any financial quarter. The facility agreement also contains covenants restricting our ability and our subsidiaries ability to incur additional liens and indebtedness, enter into asset sales, make certain investments. Bilateral credit facilities—We have access to four bilateral credit facilities in the aggregate of €340.0 million. The bilateral credit facilities consist of:
Each bilateral credit facility contains usual and customary covenants, representations and warranties and events of default for credit facilities of this type. Commercial paper—Under our commercial paper program, we have the ability to access $1.5 billion and €1.0 billion of short-term financing through our commercial paper dealers, subject to the limit of unused capacity of our facility agreement. As we have both the ability and intent to refinance these obligations on a long-term basis, our commercial paper borrowings were classified as long-term in the consolidated balance sheets as of December 31, 2017 and December 31, 2016. Commercial paper borrowings are issued at market interest rates. As of December 31, 2017, our commercial paper borrowings had a weighted average interest rate of 1.78% on the U.S. dollar denominated borrowings and (0.27)% on the Euro denominated borrowings. Synthetic bonds—On January 25, 2016, we issued €375.0 million principal amount of 0.875% convertible bonds with a maturity date of January 25, 2021 and a redemption at par of the bonds which have not been converted. On March 3, 2016, we issued additional convertible bonds for a principal amount of €75.0 million issued on the same terms, fully fungible with and assimilated to the bonds issued on January 25, 2016. The issuance of these non-dilutive cash-settled convertible bonds (“Synthetic Bonds”), which are linked to our ordinary shares were backed simultaneously by the purchase of cash-settled equity call options in order to hedge our economic exposure to the potential exercise of the conversion rights embedded in the Synthetic Bonds. As the Synthetic Bonds will only be cash settled, they will not result in the issuance of new ordinary shares or the delivery of existing ordinary shares upon conversion. Interest on the Synthetic Bonds is payable semi-annually in arrears on January 25 and July 25 of each year, beginning July 26, 2016. Net proceeds from the Synthetic Bonds were used for general corporate purposes and to finance the purchase of the call options. The Synthetic Bonds are our unsecured obligations. The Synthetic Bonds will rank equally in right of payment with all of our existing and future unsubordinated debt. The Synthetic Bonds issued on January 25, 2016 were issued at par. The Synthetic Bonds issued on March 3, 2016 were issued at a premium of 112.43802% resulting from an adjustment over the 3-day trading period following the issuance resulting in a share reference price of €48.8355. A 40.0% conversion premium was applied to the share reference price of €40.7940. The share reference price was computed using the average of the daily volume weighted average price of our ordinary shares on the Euronext Paris market over the 10 consecutive trading days from January 21 to February 3, 2016. The initial conversion price of the bonds was then fixed at €57.1116. The Synthetic Bonds each have a nominal value of €100.0 thousand with a conversion ratio of 3,464.6193 and a conversion price of €28.8632. Any bondholder may, at its sole option, request the conversion in cash of all or part of the bonds it owns, beginning November 15, 2020 to the 38th business day before the maturity date. Convertible bonds—On December 15, 2011, we issued 5,178,455 bonds convertible (the “2011-2017 Convertible Bonds”) into and/or exchangeable for new or existing shares (“OCEANE”) for approximately €497.6 million with a maturity date of January 1, 2017. Net proceeds from the issuance were used to partially restore our cash balance position following the acquisition of Global Industries, Ltd. in December 2011 for a cash consideration of $936.4 million. At maturity, all outstanding amounts under the 2011-2017 Convertible Bonds were repaid. Senior Notes—On February 28, 2017, we commenced offers to exchange any and all outstanding notes issued by FMC Technologies for up to $800.0 million aggregate principal amount of new notes issued by TechnipFMC and cash. In conjunction with the offers to exchange, FMC Technologies solicited consents to adopt certain proposed amendments to each of the indentures governing the previously issued notes to eliminate certain covenants, restrictive provisions and events of defaults from such indentures. On March 29, 2017, we settled the offers to exchange and consent solicitations (the “Exchange Offers”) for (i) any and all 2.00% senior notes due October 1, 2017 (the “2017 FMC Notes”) issued by FMC Technologies for up to an aggregate principal amount of $300.0 million of new 2.00% senior notes due October 1, 2017 (the “2017 Senior Notes’) issued by TechnipFMC and cash, and (ii) any and all 3.45% senior notes due October 1, 2022 (the “2022 FMC Notes”) issued by FMC Technologies for up to an aggregate principal amount of $500.0 million in new 3.45% senior notes due October 1, 2022 (the “2022 Senior Notes”) issued by TechnipFMC with registration rights and cash. Pursuant to the Exchange Offers, we issued approximately $215.4 million in aggregate principal amount of 2017 Senior Notes and $459.8 million in aggregate principal amount of 2022 Senior Notes (collectively the “Senior Notes”). Interest on the 2017 Senior Notes is payable on October 1, 2017. Interest on the 2022 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2017. The terms of the Senior Notes are governed by the indenture, dated as of March 29, 2017 between TechnipFMC and U.S. Bank National Association, as trustee (the “Trustee”), as amended and supplemented by the First Supplemental Indenture between TechnipFMC and the Trustee (the “First Supplemental Indenture”) relating to the issuance of the 2017 Notes and the Second Supplemental Indenture between TechnipFMC and the Trustee (the “Second Supplemental Indenture”) relating to the issuance of the 2022 Notes. At maturity, all outstanding amounts under the 2017 Senior Notes were repaid. At any time prior to July 1, 2022, in the case of the 2022 Notes, we may redeem some or all of the Senior Notes at the redemption prices specified in the First Supplemental Indenture and Second Supplemental Indenture, respectively. At any time on or after July 1, 2022, we may redeem the 2022 Notes at the redemption price equal to 100% of the principal amount of the 2022 Notes redeemed. The Senior Notes are our senior unsecured obligations. The Senior Notes will rank equally in right of payment with all of our existing and future unsubordinated debt, and will rank senior in right of payment to all of our future subordinated debt. Private Placement Notes—On July 27, 2010, we completed the private placement of €200.0 million aggregate principal amount of 5.0% notes due July 2020 (the “2020 Notes”). Interest on the 2020 Notes is payable annually in arrears on July 27 of each year, beginning July 27, 2011. Net proceeds of the 2020 Notes were used to partially finance the 2004-2011 bond issue, which was repaid at its maturity date on May 26, 2011. The 2020 Notes contain contains usual and customary covenants and events of default for notes of this type. In the event of a change of control resulting in a downgrade in the rating of the notes below BBB-, the 2020 Notes may be redeemed early by any bondholder, at its sole discretion. The 2020 Notes are our unsecured obligations. The 2020 Notes will rank equally in right of payment with all of our existing and future unsubordinated debt. In June 2012, we completed the private placement of €325.0 million aggregate principal amount of notes. The notes were issued in three tranches with €150.0 million bearing interest at 3.40% and due June 2022 (the “Tranche A 2022 Notes”), €75.0 million bearing interest of 4.0% and due June 2027 (the “Tranche B 2027 Notes”) and €100.0 million bearing interest of 4.0% and due June 2032 (the “Tranche C 2032 Notes” and, collectively with the “Tranche A 2022 Notes and the “Tranche B 2027 Notes”, the “2012 Private Placement Notes”). Interest on the Tranche A 2022 Notes and the Tranche C 2032 Notes is payable annually in arrears on June 14 of each year beginning June 14, 2013. Interest on the Tranche B 2027 Notes is payable annually in arrears on June 15 of each year, beginning June 15, 2013. Net proceeds of the 2012 Private Placement Notes were used for general corporate purposes. The 2012 Private Placement Notes contain usual and customary covenants and events of default for notes of this type. In the event of a change of control resulting in a downgrade in the rating of the notes below BBB-, the 2012 Private Placement Notes may be redeemed early by any bondholder, at its sole discretion. The 2012 Private Placement Notes are our unsecured obligations. The 2012 Private Placement Notes will rank equally in right of payment with all of our existing and future unsubordinated debt. In October 2013, we completed the private placement of €355.0 million aggregate principal amount of senior notes. The notes were issued in three tranches with €100.0 million bearing interest at 3.75% and due October 2033 (the “Tranche A 2033 Notes”), €130.0 million bearing interest of 3.15% and due October 2023 (the “Tranche B 2023 Notes) and €125.0 million bearing interest of 3.15% and due October 2023 (the “Tranche C 2023 Notes” and, collectively with the “Tranche A 2033 Notes and the “Tranche B 2023 Notes”, the “2013 Private Placement Notes”). Interest on the Tranche A 2033 Notes is payable annually in arrears on October 7 each year, beginning October 7, 2014. Interest on the Tranche B 2023 Notes is payable annually in arrears on October 16 of each year beginning October 16, 2014. Interest on the Tranche C 2023 Notes is payable annually in arrears on October 18 of each year, beginning October 18, 2014. Net proceeds of the 2013 Private Placement Notes were used for general corporate purposes. The 2013 Private Placement Notes contain contains usual and customary covenants and events of default for notes of this type. In the event of a change of control resulting in a downgrade in the rating of the notes below BBB-, the 2013 Private Placement Notes may be redeemed early by any bondholder, at its sole discretion. The 2013 Private Placement Notes are our unsecured obligations. The 2013 Private Placement Notes will rank equally in right of payment with all of our existing and future unsubordinated debt. Term loan—In December 2016, we entered into a £160.0 million term loan agreement to finance the Deep Explorer, a diving support vessel (“DSV”), maturing December 2028. Under the loan agreement, interest accrues at an annual rate of 2.813%. This loan agreement contains usual and customary covenants and events of default for loans of this type. 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. |
Other Liabilities |
12 Months Ended |
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Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES In the fourth quarter of 2016, we obtained voting control interests in legal onshore/offshore contract entities which own and account for the design, engineering and construction of the Yamal LNG plant. Prior to the amendments of the contractual terms that provided us with voting interest control, we accounted for these entities under the equity method of accounting based on our previously held interests in each of these entities. Since nearly all substantive processes to perform and execute the obligations of the underlying contract are conducted by TechnipFMC and the noncontrolling interest holders, we accounted for these entities as an acquisition upon our obtaining control and recognized a net gain of $7.7 million during 2016. As of December 31, 2016, total assets, liabilities and equity related to these entities were consolidated onto our balance sheet and our results of operations for the year ended December 31, 2017 reflect the consolidated results of operations related to these entities. Refer to Note 8 for further information regarding the acquisition and consolidation of these entities. A mandatorily redeemable financial liability of $174.8 million was recognized as of December 31, 2016 to account for the fair value of the non-controlling interests, for which $33.7 million was recorded as other current liabilities. During the year ended December 31, 2017 we revalued the liability to reflect current expectations about the obligation which resulted in the recognition of a loss of $293.7 million for the year ended December 31, 2017. Changes in the fair value of the financial liability are recorded as interest expense on the consolidated statements of income. Refer to Note 12 for further information regarding our other current liabilities. Refer to Note 21 for further information regarding the fair value measurement assumptions of the mandatorily redeemable financial liability and related changes in its fair value. |
Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Commitments associated with leases—We lease office space, manufacturing facilities and various types of manufacturing and data processing equipment. Leases of real estate generally provide for payment of property taxes, insurance and repairs by us. Substantially all of our leases are classified as operating leases. Rent expense under operating leases amounted to $369.2 million, $313.5 million and $381.6 million in 2017, 2016 and 2015, respectively. In March 2014, we entered into construction and operating lease agreements to finance the construction of manufacturing and office facilities located in Houston, TX. In January 2016, construction of the facilities was completed and the operating lease commenced. Upon expiration of the operating lease in September 2021, we have the option to renew the lease, purchase the facilities or re-market the facilities on behalf of the lessor, including certain guarantees of residual value under the re-marketing option. At December 31, 2017, future minimum rental payments under noncancellable operating leases were:
Contingent liabilities associated with guarantees—In the ordinary course of business, we enter into standby letters of credit, performance bonds, surety bonds and other guarantees with financial institutions for the benefit of our customers, vendors and other parties. The majority of these financial instruments expire within five years. Management does not expect any of these financial instruments to result in losses that, if incurred, would have a material adverse effect on our consolidated financial position, results of operations or cash flows. Guarantees consisted of the following:
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Management believes the ultimate resolution of our known contingencies will not materially affect our consolidated financial position, results of operations, or cash flows. Contingent liabilities associated with legal matters—We are involved in various pending or potential legal actions or disputes in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions because of their inherent uncertainty. However, management believes that the most probable, ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. On March 28, 2016, FMC Technologies received an inquiry from the U.S. Department of Justice ("DOJ") related to the DOJ's investigation of whether certain services Unaoil S.A.M. provided to its clients, including FMC Technologies, violated the U.S. Foreign Corrupt Practices Act ("FCPA"). On March 29, 2016 Technip S.A. also received an inquiry from the DOJ related to Unaoil. We are cooperating with the DOJ's investigations and, with regard to FMC Technologies, a related investigation by the U.S. Securities and Exchange Commission. In late 2016, Technip S.A. was contacted by the DOJ regarding its investigation of offshore platform projects awarded between 2003 and 2007, performed in Brazil by a joint venture company in which Technip S.A. was a minority participant, and we have also raised with DOJ certain other projects performed by Technip S.A. subsidiaries in Brazil between 2002 and 2013. The DOJ has also inquired about projects in Ghana and Equatorial Guinea that were awarded to Technip S.A. subsidiaries in 2008 and 2009, respectively. We are cooperating with the DOJ in its investigation into potential violations of the FCPA in connection with these projects and have also contacted the Brazilian authorities and are cooperating with their investigation concerning the projects in Brazil. Certain of the government investigations have identified issues relating to potential non-compliance with applicable laws and regulations, including the FCPA and Brazilian law, related to these historic matters. U.S. authorities have a broad range of civil and criminal sanctions under the FCPA and other laws and regulations, which they may seek to impose against corporations and individuals in appropriate circumstances including, but not limited to, fines, penalties and modifications to business practices and compliance programs. These authorities have entered into agreements with, and obtained a range of sanctions against, numerous public corporations and individuals arising from allegations of improper payments whereby civil and/or criminal penalties were imposed. Recent civil and criminal settlements have included fines of tens or hundreds of millions of dollars, deferred prosecution agreements, guilty pleas, and other sanctions, including the requirement that the relevant corporation retain a monitor to oversee its compliance with the FCPA. Brazilian authorities also have a range of sanctions available to them and have recently imposed substantial fines on corporations for anti-corruption violations. Any of these remedial measures, if applicable to us, as well as potential customer reaction to such remedial measures, could have a material adverse impact on our business, results of operations, and financial condition. Contingent liabilities associated with liquidated damages—Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a conforming claim under these provisions. These contracts define the conditions under which our customers may make claims against us for liquidated damages. Based upon the evaluation of our performance and other commercial and legal analysis, management believes we have appropriately recognized probable liquidated damages at December 31, 2017 and 2016, and that the ultimate resolution of such matters will not materially affect our consolidated financial position, results of operations, or cash flows. |
Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividends declared and paid during the year ended December 31, 2017 were $60.6 million. Dividends declared and paid during the year ended December 31, 2016 based on the results of the year ended December 31, 2015 were €236.6 million. The dividends were paid in cash and shares in the amount of €100.8 million and €135.8 million, respectively. Dividends declared and paid during the year ended December 31, 2015 based on the results of the year ended December 31, 2014 were €225.8 million. The dividends were paid in cash and shares in the amount of €88.9 million and €136.9 million, respectively. 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 U.S. GAAP reported amount (e.g. retained earnings). As of December 31, 2017 we had distributable reserves in excess of $10.1 billion. The following is a summary of our capital stock activity for the years ended December 31, 2017, 2016 and 2015:
The plan administrator of the Non-Qualified Plan purchases shares of our ordinary shares on the open market. Such shares are placed in a trust owned by FMC Technologies. In April 2017, the Board of Directors authorized the repurchase of $500.0 million in ordinary shares under our share repurchase program. We implemented our share repurchase plan in September 2017. We repurchased $58.5 million of ordinary shares during the year ended December 31, 2017, under our authorized share repurchase program. We intend to cancel repurchased shares and not hold them in treasury. Canceled treasury shares are accounted for using the constructive retirement method. Accumulated other comprehensive income (loss)—Accumulated other comprehensive income (loss) consisted of the following:
Reclassifications out of accumulated other comprehensive income (loss)—Reclassifications out of accumulated other comprehensive income (loss) consisted of the following:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Components of income (loss) before income taxes—U.S. and outside U.S. components of income (loss) before income taxes were as follows:
Provision for income tax—The provision for income taxes consisted of:
Deferred tax assets and liabilities—Significant components of deferred tax assets and liabilities were as follows:
At December 31, 2017 and 2016, the carrying amount of net deferred tax assets and the related valuation allowance included the impact of foreign currency translation adjustments. Non-deductible interest. At December 31, 2017, deferred tax assets include tax benefits of related to certain intercompany interest costs which are not currently deductible, but which may be deductible in future periods. If not utilized, these costs will become permanently nondeductible beginning in 2025. Management believes that it is more likely than not that we will not be able to deduct these costs before expiration of the carry forward period; therefore, we have established a valuation allowance against the related deferred tax assets. Foreign tax credit carryforwards. At December 31, 2017, deferred tax assets included U.S. foreign tax credit carryforwards of $34.9 million, which, if not utilized, will begin to expire in 2024. Realization of these deferred tax assets is dependent on the generation of sufficient U.S. taxable income prior to the above date. Based on long-term forecasts of operating results, management believes that it is more likely than not that our U.S. earnings over the forecast period will not result in sufficient U.S. taxable income to fully realize these deferred tax assets; therefore, we have established a valuation allowance against the related deferred tax assets. In its analysis, management has considered the effect of deemed dividends and other expected adjustments to U.S. earnings that are required in determining U.S. taxable income. Non-U.S. earnings subject to U.S. tax, including deemed dividends for U.S. tax purposes, were $1.4 billion in 2017 and nil in both 2016 and 2015. Net operating loss carryforwards. As of December 31, 2017, deferred tax assets included tax benefits related to net operating loss carryforwards. If not utilized, these net operating loss carryforwards will begin to expire in 2018. Management believes it is more likely than not that we will not be able to utilize certain of these operating loss carryforwards before expiration; therefore, we have established a valuation allowance against the related deferred tax assets. The majority of the net operating loss carryforwards came from a Brazil entity for $315.6 million, a Saudi Arabia entity for $196.8 million, a Mexico entity for $127.0 million, a France entity for $93.2 million, a U.K. entity for $121.0 million, and a Finland entity for $57.7 million. Except where there is a statutory carryforward loss time limit (i.e. Finland and Mexico), all of these tax loss carryforwards extend indefinitely. Unrecognized tax benefits—The following table presents a summary of changes in our unrecognized tax benefits and associated interest and penalties(1):
(1) We did not have any unrecognized tax benefits prior to 2016. At December 31, 2017, 2016 and 2015, there were $96.3 million, $16.6 million and nil, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. It is reasonably possible that within twelve months, a significant portion of the above unrecognized tax benefits related to certain tax reporting positions taken in prior periods could decrease due to either the expiration of the statute of limitations in certain jurisdictions, or the resolution of current income tax examinations, or both. Included in additions for tax positions related to purchase accounting is $45.2 million for potential adjustments for intercompany interest expense pertaining to a financing structure in Norway. We operate in numerous jurisdictions around the world and could be subject to multiple tax audits at any given time. Most notably, the following tax years and thereafter remain subject to examination: 2006 for Norway, 2013 for Nigeria, 2012 for Brazil and 2014 for the United States. As a result of the Merger, TechnipFMC plc is a public limited company incorporated under the laws of England and Wales. Therefore, our earnings are subject to the United Kingdom statutory rate of 19.3% beginning on the effective date of the Merger. Previously these earnings were subject to the French statutory rate of 34.4%. Our consolidated effective income tax rate information has been presented accordingly. The Merger transaction was generally a non-taxable event for the significant jurisdictions in which we operate. As of the date of the Merger, the Company recorded $306.3 million of deferred tax liability related to purchase accounting. Effective income tax rate reconciliation—The effective income tax rate was different from the statutory federal income tax rate due to the following:
U.S. Tax Cuts and Jobs Act (TCJA) and Other Jurisdictional Tax Reform. Included in the 2017 provision for income taxes are taxes related to the deemed repatriation to the United States of foreign earnings. The Tax Cuts and Jobs Act (TCJA), signed into U.S. law on December 22, 2017, made significant changes to the U.S. federal income taxation of non-U.S. corporate subsidiaries that are controlled by one or more U.S. shareholders. As part of these changes, the TCJA required a onetime deemed repatriation of all accumulated non-U.S. earnings. The TCJA generally requires that, for the last taxable year of a non-U.S. corporation beginning before January 1, 2018, all U.S. shareholders of such corporation that is at least 10-percent U.S.-owned must include in income their pro rata share of the corporation’s accumulated post-1986 deferred foreign income that was not previously subject to U.S. tax. Accordingly, the Company recorded income tax expense of approximately $148.7 million in 2017 associated with the deemed repatriation of approximately $2.9 billion of non-U.S. earnings that were not previously subject to U.S. tax. The company has recorded no current tax payable associated with the deemed repatriation. Also included in the 2017 provision for income taxes is the result of the revaluation of deferred tax attributes as a result of changes in corporate tax rates as part of jurisdictional tax reform. The tax expense from the revaluation of U.S. deferred tax attributes is $18.9 million. The tax benefit from the revaluation of deferred tax attributes in other foreign jurisdictions is $9.7 million. As of January 17, 2017, the Company had recorded a deferred tax asset of $77.7 million related to the carryforward of U.S.foreign tax credits. This deferred tax asset was offset by a valuation allowance of $77.7 million, resulting in a net carrying value of the deferred tax asset related to the carryforward of U.S. foreign tax credits of zero as of January 17, 2017. The deemed repatriation allowed for the utilization of $32.1 million of these foreign tax credit carryforwards. Accordingly, the Company recorded a tax benefit of $32.1 million in the fourth quarter of 2017 related to the utilization of these tax assets. As of December 31, 2017, the Company has recorded a deferred tax asset of $34.9 million related to the carryforward of U.S. foreign tax credits. This deferred tax asset is offset by a valuation allowance of $34.9 million, resulting in a net carrying value of the deferred tax asset associated with the carryforward of the U.S. foreign tax credits of zero as of December 31, 2017. As a result of the deemed repatriation, U.S. income tax has been provided on all undistributed earnings of non-U.S. subsidiaries of the Company’s U.S. affiliates as of December 31, 2017. The cumulative balance of these undistributed earnings was approximately $2.9 billion as of December 31, 2017. We are currently evaluating provisions of United States tax reform enacted in December 2017. In the fourth quarter of 2017, we recorded a provision to income taxes for our preliminary assessment of the impact of tax reform. As we do not have all the necessary information to analyze all income tax effects of tax reform, this is a provisional amount which we believe represents a reasonable estimate of the accounting implications of this tax reform. We will continue to evaluate tax reform and adjust the provisional amounts as additional information is obtained. The ultimate impact of tax reform may differ from our provisional amounts due to changes in our interpretations and assumptions, as well as additional regulatory guidance that may be issued. We expect to complete our detailed analysis no later than the fourth quarter of 2018. As of the date of the Merger, the cumulative balance of legacy FMC Technologies foreign earnings with respect to which no provision for U.S. income taxes has been recorded was $2.3 billion. Although the parent company of TechnipFMC has since changed jurisdictions, the undistributed foreign earnings previously reported would still be liable for U.S. income taxes. In light of 2017’s tax reform, the entirety of the previously untaxed foreign earnings have been taxed via the deemed repatriation accounted for and included in the transition tax which eliminates the company’s liability on such earnings. Income tax holidays. We benefit from income tax holidays in Singapore and Malaysia which will expire after 2018 for Singapore and 2020 for Malaysia. For the year ended December 31, 2017, these tax holidays reduced our provision for income taxes by $4.4 million, or $0.01 per share on a diluted basis. |
Pension and Other Post-Retirement Benefit Plans |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS We have funded and unfunded defined benefit pension plans which provide defined benefits based on years of service and final average salary. On December 31, 2017, we amended the retirement plans (the “Plans”) to freeze benefit accruals for all participants of the Plans as of December 31, 2017. After that date, participants in the Plans will no longer accrue any further benefits and participants’ benefits under the Plans will be determined based on credited service and eligible earnings as of December 31, 2017. Foreign-based employees are eligible to participate in TechnipFMC-sponsored or government-sponsored benefit plans to which we contribute. Several of the foreign defined benefit pension plans sponsored by us provide for employee contributions; the remaining plans are noncontributory. The most significant of these plans are in the Netherlands, France, Norway and the United Kingdom. We have other post-retirement benefit plans covering substantially all of our U.S. employees who were hired prior to January 1, 2003. The post-retirement health care plans are contributory; the post-retirement life insurance plans are noncontributory. We are required to recognize the funded status of defined benefit post-retirement plans as an asset or liability in the consolidated balance sheet and recognize changes in that funded status in comprehensive income in the year in which the changes occur. Further, we are required to measure the plan’s assets and its obligations that determine its funded status as of the date of the consolidated balance sheet. We have applied this guidance to our domestic pension and other post-retirement benefit plans as well as for many of our non-U.S. plans, including those in the United Kingdom, Norway, Germany, France and Canada. Pension expense measured in compliance with GAAP for the other non-U.S. pension plans is not materially different from the locally reported pension expense. The funded status of our U.S. Pension Plans, certain foreign pension plans and U.S. post-retirement health care and life insurance benefit plans, together with the associated balances recognized in our consolidated balance sheets as of December 31, 2017 and 2016, were as follows:
The following table summarizes the pre-tax amounts in accumulated other comprehensive (income) loss at December 31, 2017 and 2016 that have not been recognized as components of net periodic benefit cost:
The following tables summarize the projected and accumulated benefit obligations and fair values of plan assets where the projected or accumulated benefit obligation exceeds the fair value of plan assets at December 31, 2017 and 2016:
The following table summarizes the components of net periodic benefit cost (income) for the years ended December 31, 2017, 2016 and 2015:
The following table summarizes changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015:
Included in accumulated other comprehensive income (loss) at December 31, 2017, are noncash, pre-tax charges which have not yet been recognized in net periodic benefit cost (income). The estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive income (loss) as a component of net period benefit cost (income), during the next fiscal year are as follows:
Key assumptions—The following weighted-average assumptions were used to determine the benefit obligations:
The following weighted-average assumptions were used to determine net periodic benefit cost:
Our estimate of expected rate of return on plan assets is primarily based on the historical performance of plan assets, current market conditions, our asset allocation and long-term growth expectations. Plan assets—Our pension investment strategy emphasizes maximizing returns consistent with balancing risk. Excluding our international plans with insurance-based investments, 98% of our total pension plan assets represent the U.S. qualified plan, the U.K. plan, the Norway plan and the Netherlands plan. These plans are primarily invested in equity securities to maximize the long-term returns of the plans. The investment managers of these assets, including the hedge funds and limited partnerships, use Graham and Dodd fundamental investment analysis to select securities that have a margin of safety between the price of the security and the estimated value of the security. This value-oriented approach tends to mitigate the risk of a large equity allocation. The following is a description of the valuation methodologies used for the pension plan assets. There have been no changes in the methodologies used at December 31, 2017 and 2016.
Our pension plan assets measured at fair value on a recurring basis are as follows at December 31, 2017 and 2016. Refer to “Fair value measurements” in Note 1 to these consolidated financial statements for a description of the levels.
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Contributions—We expect to contribute approximately $19.9 million to our international pension plans, representing primarily the U.K. qualified pension plans and approximately $5.3 million to our U.S. Non-Qualified Defined Benefit Pension Plan in 2018. We do not expect to make any contributions to our U.S. Qualified Pension Plan in 2018. All of the contributions are expected to be in the form of cash. In 2017 and 2016, we contributed $19.1 million and $3.0 million to all pension plans, respectively. Estimated future benefit payments—The following table summarizes expected benefit payments from our various pension and post-retirement benefit plans through 2025. Actual benefit payments may differ from expected benefit payments.
Savings plans—The FMC Technologies, Inc. Savings and Investment Plan (“Qualified Plan”), a qualified salary reduction plan under Section 401(k) of the Internal Revenue Code, is a defined contribution plan. Additionally, we have a non-qualified deferred compensation plan, the Non-Qualified Plan, which allows certain highly compensated employees the option to defer the receipt of a portion of their salary. We match a portion of the participants’ deferrals to both plans. Both plans relate to FMC Technologies, Inc and therefore only 2017 amounts are presented below. Participants in the Non-Qualified Plan earn a return based on hypothetical investments in the same options as our 401(k) plan, including TehnipFMC plc stock. Changes in the market value of these participant investments are reflected as an adjustment to the deferred compensation liability with an offset to other income (expense), net. As of December 31, 2017, our liability for the Non-Qualified Plan was $29.4 million and was recorded in other non-current liabilities. We hedge the financial impact of changes in the participants’ hypothetical investments by purchasing the investments that the participants have chosen. With the exception of TechnipFMC plc stock, which is maintained at its cost basis, changes in the fair value of these investments are recognized as an offset to other income (expense), net. As of December 31, 2017, we had investments for the Non-Qualified Plan totaling $25.1 million at fair market value and TechnipFMC stock held in trust of $4.8 million at its cost basis. Refer to Note 18 to these consolidated financial statements for fair value disclosure of the Non-Qualified Plan investments. We recognized expense of $20.3 million for matching contributions to these plans in 2017. Additionally, we recognized expense of $12.5 million for non-elective contributions in 2017. |
Share-Based Compensation |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Incentive compensation and award plan—On January 11, 2017, we adopted the TechnipFMC plc Incentive Award Plan (the “Plan”). The Plan provides certain incentives and awards to officers, employees, non-employee directors and consultants of TechnipFMC and its subsidiaries. The Plan allows our Board of Directors to make various types of awards to non-employee directors and the Compensation Committee (the “Committee”) of the Board of Directors to make various types of awards to other eligible individuals. Awards may include share options, share appreciation rights, performance share units, restricted share units, restricted shares or other awards authorized under the Plan. All awards are subject to the Plan’s provisions, including all share-based grants previously issued by FMC Technologies and Technip prior to consummation of the Merger. Under the Plan, 24.1 million ordinary shares were authorized for awards. The exercise price for options is determined by the Committee but cannot be less than the fair market value of our ordinary shares at the grant date. Restricted share and performance share unit grants generally vest after three years of service. Under the Plan, our Board of Directors has the authority to grant non-employee directors share options, restricted shares, restricted share units and performance shares. Unless otherwise determined by our Board of Directors, awards to non-employee directors generally vest on the date of our annual shareholder meeting following the date of grant. Restricted share units are settled when a director ceases services to the Board of Directors. At December 31, 2017, outstanding awards to active and retired non-employee directors included 64.9 thousand share units. The measurement of share-based compensation expense on restricted share awards and performance share awards is based on the market price at the grant date and the number of shares awarded. We used the Cox Ross Rubinstein binomial model to measure the fair value of stock options granted prior to December 31, 2016 and Black-Scholes options pricing model to measure the fair value of stock options granted on or after January 1, 2017. The share-based compensation expense for each award is recognized ratably over the applicable service period or the period beginning at the start of the service period and ending when an employee becomes eligible for retirement (currently age 62 under the plan), after taking into account estimated forfeitures.We recognize compensation expense and the corresponding tax benefits for awards under the Plan. The compensation expense for nonvested share units under the Plan is as follows:
As of December 31, 2017, the portion of share-based compensation expense related to outstanding awards to be recognized in future periods is as follows:
Restricted share units. A summary of the nonvested restricted share units awarded to employees as of December 31, 2017, and changes during the year is presented below:
The following summarizes values for restricted share unit activity to employees(1):
(1) We began issuing restricted share units in 2017. Performance Shares. The Board of Directors has granted certain employees, senior executives and Directors or Officers shares subject to achieving satisfactory performances. For performance shares issued prior to December 31, 2016, performance is based on results in terms of health/safety/environment, operating income from recurring activities, and treasury generated from operating activities or total shareholder return. For performance shares issued on or after January 1, 2017, performance is based on results of return on investment or shareholder value. A summary of the nonvested performance share units awarded to employees as of December 31, 2017, and changes during the year is presented below:
(1) The Weighted-Average Grant Date Fair Value for the increase in shares due to the merger remains at $0.00 in order to recalculate the new weighted average for the December 31, 2016 nonvested shares (see Note 2). The following summarizes values for performance share activity to employees:
Share Option Awards. The fair value of each option award is estimated as of the date of grant using the Black-Scholes options pricing model or the Cox Ross Rubinstein binomial model. Expected volatility is based on normalized historical volatility of our shares over a preceding period commensurate with the expected term of the option. From 2017, the risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Prior to 2017, the risk free rate was based on the bond yields from the European Central Bank. Share options awarded prior to 2017 were valued using an expected dividend yield of between 2.0% and 4.5% while those awarded in 2017 used 2.0%. Share options awarded prior to 2017 were granted subject to performance criteria based upon certain targets, such as total shareholder return, return on capital employed, and operating income from recurring activities. Subsequent share options granted are time based awards vesting over a three year period. The weighted average assumptions for the option awards granted in the years ended December 31, 2017, 2016 and 2015 are as follows:
During the years ended December 31, 2017, 2016 and 2015, we granted 798.4 thousand, 595.1 thousand and 568.6 thousand options, respectively, and the weighted average grant-date fair value of options granted during years ended December 31, 2017, 2016 and 2015 was $8.79, €7.70 and €6.01, respectively. The following is a summary of option transactions during years ended December 31, 2017, 2016 and 2015:
(1) The Weighted-Average Grant Date Fair Value for the increase in shares due to the merger remains at $0.00 in order to recalculate the new weighted average for the December 31, 2016 nonvested shares (see Note 2) The aggregate intrinsic value of stock options outstanding and stock options exercisable as of December 31, 2017 was $12.5 million and nil, respectively. There were nil, 25.5 thousand and 561.7 thousand options exercised during the years ended December 31, 2017, 2016 and 2015, respectively. Cash received from the option exercises was nil, €1.5 million and €21.3 million during years ended December 31, 2017, 2016 and 2015, respectively. The total intrinsic value of options exercised during the years ended December 31, 2017, 2016 and 2015 was nil, nil and €12.9 million, respectively. To exercise stock options, an employee may choose (1) to pay, either directly or by way of the group savings plan, the stock option strike price to obtain shares, or (2) to sell the shares immediately after having exercised the stock option (in this case, the employee does not pay the strike price but instead receives the intrinsic value of the stock options in cash). The following summarizes additional information concerning outstanding and exercisable options at December 31, 2017 :
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Derivative Financial Instruments |
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS For purposes of mitigating the effect of changes in exchange rates, we hold derivative financial instruments to hedge the risks of certain identifiable and anticipated transactions and recorded assets and liabilities in our consolidated balance sheets. The types of risks hedged are those relating to the variability of future earnings and cash flows caused by movements in foreign currency exchange rates. Our policy is to hold derivatives only for the purpose of hedging risks associated with anticipated foreign currency purchases and sales created in the normal course of business and not for trading purposes where the objective is solely to generate profit. Generally, we enter into hedging relationships such that changes in the fair values or cash flows of the transactions being hedged are expected to be offset by corresponding changes in the fair value of the derivatives. For derivative instruments that qualify as a cash flow hedge, the effective portion of the gain or loss of the derivative, which does not include the time value component of a forward currency rate, is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, any change in the fair value of those instruments are reflected in earnings in the period such change occurs. We hold the following types of derivative instruments: Foreign exchange rate forward contracts – The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies and recorded assets and liabilities in our consolidated balance sheets. At December 31, 2017, we held the following material net positions:
Foreign exchange rate instruments embedded in purchase and sale contracts – The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or conduct business in internationally recognized and traded currencies. At December 31, 2017, our portfolio of these instruments included the following material net positions:
Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. Refer to Note 21 to these consolidated financial statements for further disclosures related to the fair value measurement process. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a current market exchange and may not be indicative of the gains or losses we may ultimately incur when these contracts are settled. The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets.
We recognized a gain of $25.3 million and losses of $10.3 million and $9.0 million on cash flow hedges for the years ended December 31, 2017, 2016 and 2015, respectively, due to hedge ineffectiveness as it was probable that the original forecasted transaction would not occur. Cash flow hedges of forecasted transactions, net of tax, resulted in accumulated other comprehensive income of $28.5 million and accumulated comprehensive loss $126.5 million at December 31, 2017 and 2016, respectively. We expect to transfer approximately $23.0 million income 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 2020. The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as fair value hedges.
The following tables present the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as cash flow hedges.
The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments not designated as hedging instruments.
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 December 31, 2017 and 2016, we had no collateralized derivative contracts. The following tables present both gross information and net information of recognized derivative instruments:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis were as follows:
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Non-qualified plan—The fair value measurement of our traded securities is based on quoted prices that we have the ability to access in public markets. Our stable value fund and money market fund are valued at the net asset value of the shares held at the end of the quarter, which is based on the fair value of the underlying investments using information reported by our investment adviser at quarter-end. Available-for-sale investments—The fair value measurement of our available-for-sale investments is based on quoted prices that we have the ability to access in public markets. Other investments—Held-to-maturity investments included in the investments line item on the consolidated balance sheet are carried at amortized cost. Assets and liabilities held for sale—The fair value of our assets and liabilities held for sale was determined using a market approach that took into consideration the expected sales price as of December 31, 2017. Mandatorily redeemable financial liability—We determined the fair value of the mandatorily redeemable financial liability using a discounted cash flow model. Refer to Note 14 for further information related to this liability. The key assumption used in applying the income approach is the selected discount rates and the expected dividends to be distributed in the future to the noncontrolling interest holders. Expected dividends to be distributed is based on the noncontrolling interests’ share of the expected profitability of the underlying contract, the selected discount rate, and the overall timing of completion of the project. A decrease of one percentage point in the discount rate would have increased the liability by $6.6 million as of December 31, 2017. The fair value measurement is based upon significant unobservable inputs not observable in the market and is consequently classified as a Level 3 fair value measurement. Changes in the fair value of our Level 3 mandatorily redeemable financial liability is presented below. Since the liability was created during the three months ended December 31, 2016, no changes in fair value are presented for the prior period.
Derivative financial instruments—We use the income approach as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used. Our credit spread, and the credit spread of other counterparties not publicly available are approximated by using the spread of similar companies in the same industry, of similar size and with the same credit rating. At this time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. Refer to Note 20 to these consolidated financial statements for additional disclosure related to derivative financial instruments. Assets measured at fair value on a non-recurring basis were as follows: Fair value of long-lived, non-financial assets—Long-lived, non-financial assets are measured at fair value on a non-recurring basis for the purposes of calculating impairment, when the recoverable amount of the assets has been determined to be less than the book value of the assets. The fair value measurements of our long-lived, non-financial assets measured by estimating the amount and timing of net future cash flows, which are Level 3 unobservable inputs, and discounting them using a risk-adjusted rate of interest. Significant increases or decreases in actual or estimated cash flows may result in changes to the fair value of long-lived non-financial assets. Refer to Note 5 for additional disclosure related to these asset impairments. Other fair value disclosures: Fair value of debt—The fair value of our Synthetic Bonds, Senior Notes and private placement notes are as follows:
Other fair value disclosures—The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, commercial paper, debt associated with our bank borrowings, credit facilities, convertible bonds, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value. Credit risk—By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectibility assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement, which permits the net settlement of gross derivative assets against gross derivative liabilities. |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide, which corresponds to the manner in which our Chief Executive Officer, as our chief operating decision maker, reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. Upon completion of the Merger, we reorganized our reporting structure and aligned our segments and the underlying businesses to execute the strategy of TechnipFMC. As a result, we report the results of operations in the following segments: Subsea, Onshore/Offshore and Surface Technologies. Our reportable segments are:
Total revenue by segment includes intersegment sales, which are made at prices approximating those that the selling entity is able to obtain on external sales. Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in computing segment operating profit. Refer to Note 8 for additional information. The following items have been excluded in computing segment operating profit: corporate staff expense, net interest income (expense) associated with corporate debt facilities, income taxes, and other revenue and other expense, net. Segment revenue and segment operating profit
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Segment assets
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Geographic segment information Geographic segment sales were identified based on the location where our products and services were delivered.
Geographic segment long-lived assets represent property, plant and equipment, net.
Other business segment information
During the years ended December 31, 2017, 2016 and 2015, revenue from JSC Yamal LNG exceeded 10% of our consolidated revenue. During the year ended December 31, 2016, revenue from Total exceeded 10% of our consolidated revenue. |
Quarterly Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY INFORMATION (UNAUDITED) | QUARTERLY INFORMATION (UNAUDITED)
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Schedule II - Valuation and Qualifying Accounts |
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SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | Schedule II—Valuation and Qualifying Accounts
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Basis of Presentation and Summary of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||
Basis of presentation | Basis of presentation—Our consolidated financial statements were prepared in U.S. dollars and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to annual financial information. In this Annual Report on Form 10-K, we are reporting the results of our operations for the year ended December 31, 2017, which consist of the combined results of operations of Technip S.A. (“Technip”) and FMC Technologies, Inc. (“FMC Technologies”). Due to the merger of FMC Technologies and Technip, FMC Technologies’ results of operations have been included in our financial statements for periods subsequent to the consummation of the merger on January 16, 2017. Since TechnipFMC is the successor company to Technip, we are presenting the results of Technip’s operations for the years ended December 31, 2016 and December 31, 2015 and as of December 31, 2016. Refer to Note 2 for further information related to the merger of FMC Technologies and Technip. |
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Principles of consolidation | Principles of consolidation—The consolidated financial statements include the accounts of TechnipFMC and its majority-owned subsidiaries and affiliates. Intercompany accounts and transactions are eliminated in consolidation. |
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Use of estimates | Use of estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Such estimates include, but are not limited to, estimates of total contract profit or loss on long-term construction-type contracts; estimated realizable value on excess and obsolete inventory; estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimate of fair value in business combinations and estimates related to income taxes. |
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Investments in the common stock of unconsolidated affiliates | Investments in the common stock of unconsolidated affiliates—The equity method of accounting is used to account for investments in unconsolidated affiliates where we can have the ability to exert significant influence over the affiliates operating and financial policies. The cost method of accounting is used where significant influence over the affiliate is not present. For certain construction joint ventures, we use the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. Intercompany balances and transactions have been eliminated in preparing the accompanying consolidated financial statements. Investments in unconsolidated affiliates are assessed for impairment whenever events or changes in facts and circumstances indicate the carrying value of the investments may not be fully recoverable. When such a condition is subjectively determined to be other than temporary, the carrying value of the investment is written down to fair value. Management’s assessment as to whether any decline in value is other than temporary is based on our ability and intent to hold the investment and whether evidence indicating the carrying value of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. Management generally considers our investments in equity method investees to be strategic, long-term investments and completes its assessments for impairment with a long-term viewpoint. Investments in which ownership is less than 20% or that do not represent significant investments are reported in other assets on the consolidated balance sheets. Where no active market exists and where no other valuation method can be used, these financial assets are maintained at historical cost, less any accumulated impairment losses. |
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Variable interest entity | We determine whether investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if we are the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb significant losses of or the right to receive significant benefits from the VIE. If we are deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a non-controlling interest. Our unconsolidated VIEs are accounted for using the equity method of accounting. |
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Business combinations | Business combinations—Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their respective fair values as of the acquisition date. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. The purchase price is allocated to the assets, assumed liabilities and identifiable intangible assets based on their estimated fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Transaction related costs are expensed as incurred. |
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Revenue recognition | Revenue recognition—Revenue is generally recognized once the following four criteria are met: i) persuasive evidence of an arrangement exists, ii) delivery of the equipment has occurred (which is upon shipment or when customer-specific acceptance requirements are met) or services have been rendered, iii) the price of the equipment or service is fixed or determinable, and iv) collectibility is reasonably assured. We record our sales net of any value added, sales or use tax. For certain construction-type manufacturing and assembly projects that involve significant design and engineering efforts to satisfy detailed customer specifications, revenue is recognized using the percentage of completion method of accounting. Under the percentage of completion method, revenue is recognized as work progresses on each contract. We apply the ratio of costs incurred to date to total estimated contract costs at completion or on physical progress defined for the main deliverables under the contracts. If it is not possible to form a reliable estimate of progress toward completion, no revenue or costs are recognized until the project is complete or substantially complete. Any expected losses on construction-type contracts in progress are charged to earnings, in total, in the period the losses are identified. Modifications to construction-type contracts, referred to as “change orders,” effectively change the provisions of the original contract, and may, for example, alter the specifications or design, method or manner of performance, equipment, materials, sites and/or period for completion of the work. If a change order represents a firm price commitment from a customer, we account for the revised estimate as if it had been included in the original estimate, effectively recognizing the pro rata impact of the new estimate on our calculation of progress toward completion in the period in which the firm commitment is received. If a change order is unpriced: (1) we include the costs of contract performance in our calculation of progress toward completion in the period in which the costs are incurred or become probable; and (2) when it is determined that the revenue is probable of recovery, we include the change order revenue, limited to the costs incurred to date related to the change order, in our calculation of progress toward completion. Unpriced change orders included in revenue were immaterial to our consolidated revenue for all periods presented. Margin is not recorded on unpriced change orders unless realization is assured beyond a reasonable doubt. The assessment of realization may be based upon our previous experience with the customer or based upon our receipt of a firm price commitment from the customer. Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Revenue in excess of progress billings are reported in costs and estimated earnings in excess of billings on uncompleted contracts in our consolidated balance sheets. Progress billings and cash collections in excess of revenue recognized on a contract are classified as billings in excess of costs and estimated earnings on uncompleted contracts and advance payments, respectively, in our consolidated balance sheets. Our operating profit for the year ended December 31, 2017 was positively impacted by approximately $378.4 million, as a result of changes in contract estimates related to projects that were in progress at December 31, 2016. During the year ended December 31, 2017, we recognized favorable changes in our estimates which had an impact on our margin in the amounts of $325.0 million and $53.4 million in our Onshore/Offshore and Subsea segment’s, respectively. The changes in contract estimates are attributed to better than expected performance throughout our execution of our projects. |
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Cash equivalents | Cash equivalents—Cash equivalents are highly-liquid, short-term instruments with original maturities of generally three months or less from their date of purchase. |
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Trade receivables, net of allowances | Trade receivables, net of allowances—An allowance for doubtful accounts is provided on receivables equal to the estimated uncollectible amounts. This estimate is based on historical collection experience and a specific review of each customer’s receivables balance. |
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Inventories | Inventories—Inventories are stated at the lower of cost or net realizable value, except as it relates to inventory measured using the last-in, first-out (“LIFO”) method, for which the inventories are stated at the lower of cost or market. Inventory costs include those costs directly attributable to products, including all manufacturing overhead, but excluding costs to distribute. Cost for a significant portion of the U.S. domiciled inventories is determined on the LIFO method. The first-in, first-out (“FIFO”) or weighted average methods are used to determine the cost for the remaining inventories. Write-down on inventories are recorded when the net realizable value of inventories is lower than their net book value. |
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Property, plant and equipment | Property, plant and equipment—Property, plant, and equipment is recorded at cost. Depreciation is principally provided on the straight-line basis over the estimated useful lives of the assets (vessels—10 to 30 years; buildings—10 to 50 years; and machinery and equipment—3 to 20 years). Gains and losses are realized upon the sale or retirement of assets and are recorded in other income (expense), net on our consolidated statements of income. Maintenance and repair costs are expensed as incurred. Expenditures that extend the useful lives of property, plant and equipment are capitalized and depreciated over the estimated new remaining life of the asset. |
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Impairment of property, plant, and equipment | Impairment of property, plant and equipment—Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying value of the long-lived asset may not be recoverable. The carrying value of an asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the impairment loss is measured as the amount by which the carrying value of the long-lived asset exceeds its fair value. Long-lived assets classified as held for sale are reported at the lower of carrying value or fair value less cost to sell. |
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Goodwill | Goodwill—Goodwill is not subject to amortization but is tested for impairment on an annual basis (or more frequently if impairment indicators arise) by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. A reporting unit is defined as an operating segment or one level below the operating segment. We have established October 31 as the date of our annual test for impairment of goodwill. Reporting units with goodwill are tested for impairment using a quantitative impairment test known as the income approach, which estimates fair value by discounting each reporting unit’s estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the reporting unit. To arrive at our future cash flows, we use estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and cash expenditures. Future revenues are also adjusted to match changes in our business strategy. If the fair value of the reporting unit is less than its carrying amount as a result of this method, then an impairment loss is recorded. A lower fair value estimate in the future for any of our reporting units could result in goodwill impairments. Factors that could trigger a lower fair value estimate include sustained price declines of the reporting unit’s products and services, cost increases, regulatory or political environment changes, changes in customer demand, and other changes in market conditions, which may affect certain market participant assumptions used in the discounted future cash flow model. |
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Intangible assets | Intangible assets—Our acquired intangible assets are generally amortized on a straight-line basis over their estimated useful lives, which generally range from 2 to 20 years. Our acquired intangible assets do not have indefinite lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the intangible asset may not be recoverable. The carrying amount of an intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the intangible asset exceeds its fair value. Capitalized software costs are recorded at cost. Capitalized software costs include purchases of software and internal and external costs incurred during the application development stage of software projects. These costs are amortized on a straight-line basis over the estimated useful lives. For internal use software, the useful lives range from three to ten years. For Internet website costs, the estimated useful lives do not exceed three years. |
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Debt instruments | Debt instruments—Debt instruments include convertible and synthetic bonds, senior and private placement notes and other borrowings. Issuance fees and redemption premium on debt instruments are included in the cost of debt in the consolidated balance sheets, as an adjustment to the nominal amount of the debt. |
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Fair value measurements | Fair value measurements—Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The fair value framework requires the categorization of assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities, with the exception of certain assets and liabilities measured using the net asset value practical expedient, which are not required to be leveled. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
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Income taxes | Income taxes—Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance is established whenever management believes that it is more likely than not that deferred tax assets may not be realizable. Income taxes are not provided on our equity in undistributed earnings of foreign subsidiaries or affiliates to the extent we have determined that the earnings are indefinitely reinvested. Income taxes are provided on such earnings in the period in which we can no longer support that such earnings are indefinitely reinvested. Tax benefits related to uncertain tax positions are recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. We classify interest expense and penalties recognized on underpayments of income taxes as income tax expense. |
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Stock-based employee compensation | Share-based employee compensation—The measurement of share-based compensation expense on restricted share awards and performance share awards is based on the market price at the grant date and the number of shares awarded. We used the Cox Ross Rubinstein binomial model to measure the fair value of stock options granted prior to December 31, 2016 and Black-Scholes options pricing model to measure the fair value of stock options granted on or after January 1, 2017. The stock-based compensation expense for each award is recognized ratably over the applicable service period or the period beginning at the start of the service period and ending when an employee becomes eligible for retirement, after taking into account estimated forfeitures,. |
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Ordinary shares held in employee benefit trust | Ordinary shares held in employee benefit trust—Our ordinary shares are purchased by the plan administrator of the FMC Technologies, Inc. Non-Qualified Savings and Investment Plan and placed in a trust that we own. Purchased shares are recorded at cost and classified as a reduction of stockholders’ equity on the consolidated balance sheets. |
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Treasury shares | Treasury shares—Treasury shares held are recorded as a reduction to stockholders’ equity using the cost method. Any gain or loss related to the sale of treasury shares is included in stockholders’ equity. Canceled treasury shares are accounted for using the constructive retirement method. |
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Earnings per common share (“EPS”) | Earnings per ordinary share (“EPS”)—Basic EPS is computed using the weighted-average number of ordinary shares outstanding during the year. We use the treasury stock method to compute diluted EPS which gives effect to the potential dilution of earnings that could have occurred if additional shares were issued for awards granted under our incentive compensation and stock plan. The treasury stock method assumes proceeds that would be obtained upon exercise of awards granted under our incentive compensation and stock plan are used to purchase outstanding ordinary shares at the average market price during the period. Convertible bonds that could be converted into or be exchangeable for new or existing shares would additionally result in a dilution of earnings per share. The ordinary shares assumed to be converted as of the issuance date are included to compute diluted EPS under the if-converted method. Additionally, the net profit of the period is adjusted as if converted for the after-tax interest expense related to these dilutive shares. |
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Foreign currency | Foreign currency—Financial statements of operations for which the U.S. dollar is not the functional currency, and which are located in non-highly inflationary countries, are translated into U.S. dollars prior to consolidation. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date, while income statement accounts are translated at the average exchange rate for each period. For these operations, translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity until the foreign entity is sold or liquidated. For operations in highly inflationary countries and where the local currency is not the functional currency, inventories, property, plant and equipment, and other non-current assets are converted to U.S. dollars at historical exchange rates, and all gains or losses from conversion are included in net income. Foreign currency effects on cash, cash equivalents and debt in hyperinflationary economies are included in interest income or expense. For certain committed and anticipated future cash flows and recognized assets and liabilities which are denominated in a foreign currency, we may choose to manage our risk against changes in the exchange rates, when compared against the functional currency, through the economic netting of exposures instead of derivative instruments. Cash outflows or liabilities in a foreign currency are matched against cash inflows or assets in the same currency, such that movements in exchanges rates will result in offsetting gains or losses. Due to the inherent unpredictability of the timing of cash flows, gains and losses in the current period may be economically offset by gains and losses in a future period. All gains and losses are recorded in our consolidated statements of income in the period in which they are incurred. Gains and losses from the remeasurement of assets and liabilities are recognized in other income (expense), net. |
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Derivative instruments | Derivative instruments—Derivatives are recognized on the consolidated balance sheets at fair value, with classification as current or non-current based upon the maturity of the derivative instrument. Changes in the fair value of derivative instruments are recorded in current earnings or deferred in accumulated other comprehensive income (loss), depending on the type of hedging transaction and whether a derivative is designated as, and is effective as, a hedge. Each instrument is accounted for individually and assets and liabilities are not offset. Hedge accounting is only applied when the derivative is deemed to be highly effective at offsetting changes in anticipated cash flows of the hedged item or transaction. Changes in fair value of derivatives that are designated as cash flow hedges are deferred in accumulated other comprehensive income (loss) until the underlying transactions are recognized in earnings. At such time, related deferred hedging gains or losses are recorded in earnings on the same line as the hedged item. Effectiveness is assessed at the inception of the hedge and on a quarterly basis. Effectiveness of forward contract cash flow hedges are assessed based solely on changes in fair value attributable to the change in the spot rate. The change in the fair value of the contract related to the change in forward rates is excluded from the assessment of hedge effectiveness. Changes in this excluded component of the derivative instrument, along with any ineffectiveness identified, are recorded in earnings as incurred. We document our risk management strategy and hedge effectiveness at the inception of, and during the term of, each hedge. We also use forward contracts to hedge foreign currency assets and liabilities, for which we do not apply hedge accounting. The changes in fair value of these contracts are recognized in other income (expense), net on our consolidated statements of income, as they occur and offset gains or losses on the remeasurement of the related asset or liability. |
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Recently adopted and issued accounting standards | Recently Adopted Accounting Standards Effective January 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Among other amendments, this update requires that excess tax benefits or deficiencies be recognized as income tax expense or benefit in the income statement and eliminates the requirement to reclassify excess tax benefits and deficiencies from operating activities to financing activities in the statement of cash flows. This updated guidance also gives an entity the election to either (i) estimate the forfeiture rate of employee stock-based awards or (ii) account for forfeitures as they occur. We elected to retrospectively classify excess tax benefits and deficiencies as operating activity and these amounts, which were immaterial for all periods presented, are reflected in the income taxes payable, net line item in the accompanying consolidated statement of cash flows. In addition, we elected to continue to estimate forfeitures on the grant date to account for the estimated number of awards for which the requisite service period will not be rendered. The adoption of this update did not have a material impact on our consolidated financial statements. Effective January 1, 2017, we adopted ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This update requires in scope inventory to be measured at the lower of cost or net realizable value rather than at the lower of cost or market under existing guidance. We adopted the updated guidance prospectively. The adoption of this update did not have a material impact on our consolidated financial statements. Effective January 1, 2017, we adopted ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” This update states that substantial doubt exists if it is probable that an entity will be unable to meet its current and future obligations. Disclosures are required if conditions give rise to substantial doubt. However, management will need to assess if its plans will alleviate substantial doubt to determine the specific disclosures. The Company adopted this standard in 2017 and management does not believe there is substantial doubt about the entity's ability to continue as a going concern. Effective September 30, 2017, we early adopted ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” This update eliminates step two from the goodwill impairment test. An annual or interim goodwill test should be performed by comparing the fair value of a reporting unit with its carrying amount. Income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should also be considered when measuring any applicable goodwill impairment loss. This updated guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and if it fails that qualitative assessment, to perform step two of the goodwill impairment test. Any goodwill amount allocated to a reporting unit with a zero or negative carrying amount net of assets is required to be disclosed. The adoption of this update did not have a material impact on our consolidated financial statements. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU will supersede most existing GAAP related to revenue recognition and will supersede some cost guidance in existing GAAP related to construction-type and production-type contract accounting. Additionally, the ASU will significantly increase disclosures related to revenue recognition. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU No. 2014-09 by one year, and as a result, is now effective for us on January 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” which clarifies the implementation guidance on principal versus agent considerations. Early application is permitted to the original effective date of January 1, 2017. Entities are permitted to apply the amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The new standard requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time based on when control of goods and services transfer to a customer. As a result, we expect changes in the presentation of our financial statements, including: (1) timing of revenue recognition, and (2) changes in classification between revenue and costs. We have performed a detailed review of our contract portfolio representative of our different businesses and compared historical accounting policies and practices to the new standard. Over the course of 2017, we have formed an implementation work team, conducted training for the relevant staff regarding a detailed overview of the key changes within the new standard. We have engaged external resources to assist us in our efforts of establishing new policies, procedures, and controls, establishing appropriate presentation and disclosure changes. We adopted new revenue recognition guidance using the modified retrospective transition method effective for the quarter ending March 31, 2018, applying the guidance to contracts with customers that were not substantially complete as of January 1, 2018. Our financial results for reporting periods after January 1, 2018 will be presented under the new guidance, while financial results for prior periods will continue to be reported in accordance with the prior guidance and our historical accounting policy. We have evaluated the impact of the new guidance on a substantial portion our contracts with customers, including identification of differences that will result from the new requirements. Based on the analysis performed to date, we do not anticipate any significant changes in our revenue recognition and do not believe that the guidance surrounding identification of contracts and performance obligations or measurement of variable consideration will have a material impact on the revenue recognition for these arrangements. We expect our disclosures related to revenue recognition will expand to address new quantitative and qualitative requirements regarding the nature, amount and timing of revenue from contracts with customers and additional information related to contract assets and liabilities. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This update addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other amendments, this update requires equity investments not accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. An entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This updated guidance also simplifies the impairment assessment of equity investments without readily determinable fair values and eliminates the requirement to disclose significant assumptions and methods used to estimate the fair value of financial instruments measured at amortized cost. The updated guidance further requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this ASU are effective for us on January 1, 2018. All amendments are required to be adopted on a modified retrospective basis, with two exceptions. The amendments related to equity investments without readily determinable fair values and the requirement to use an exit price notion are required to be adopted prospectively. Early adoption is not permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. On February 28, 2018 the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments-Overall(Subtopic825-10):Recognition and Measurement of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10).” These amendments clarify the guidance in ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10), on the following issues (among other things): Equity Securities without a Readily Determinable Fair Value-Discontinuation; Equity Securities without a Readily Determinable Fair Value- Adjustments; Forward Contracts and Purchase Options; Presentation Requirements for Certain Fair Value Option Liabilities; Fair Value Option Liabilities Denominated in a Foreign Currency; Transition Guidance for Equity Securities without a Readily Determinable Fair Value. The amendments in this ASU are effective for us January 1, 2018 in conjunction with the adoption of ASU 2016-01. We are currently evaluating the impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. Early application is permitted. Entities are required to use a modified retrospective adoption, with certain relief provisions, for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements when adopted. The guidance will become effective for us on January 1, 2019. The impacts that adoption of the ASU is expected to have on our consolidated financial statements and related disclosures are being evaluated. Additionally, we have not determined the effect of the ASU on our internal control over financial reporting or other changes in business practices and processes. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses.” This update introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The updated guidance applies to (i) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (ii) loan commitments and other off-balance sheet credit exposures, (iii) debt securities and other financial assets measured at fair value through other comprehensive income, and (iv) beneficial interests in securitized financial assets. The amendments in this ASU are effective for us on January 1, 2020 and are required to be adopted on a modified retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” This update amends the existing guidance for the statement of cash flows and provides guidance on eight classification issues related to the statement of cash flows. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted retrospectively. For issues that are impracticable to adopt retrospectively, the amendments may be adopted prospectively as of the earliest date practicable. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” This update requires that income tax consequences are recognized on an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted on a modified retrospective basis. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business.” This update clarifies the definition of a business and provides a screen to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, such set of assets is not a business. The amendments in this ASU are effective for us on January 1, 2018 and are required to be adopted prospectively. Early adoption is permitted. This ASU is not expected to have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” This update defines an in-substance nonfinancial asset, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sale of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The amendments in this ASU are effective for us January 1, 2018 and are required to be adopted with either a full retrospective approach or a modified retrospective approach. This ASU is not expected to have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This update requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount of net benefit cost that is included in the income statement or capitalized in assets, by line item. The updated guidance requires employers to report the service cost component in the same line item(s) as other compensation costs and to report other pension-related costs (which include interest costs, amortization of pension-related costs from prior periods, and the gains or losses on plan assets) separately and exclude them from the subtotal of operating income. The updated guidance also allows only the service cost component to be eligible for capitalization when applicable. The amendments in this ASU are effective for us on January 1, 2018. Early adoption is permitted. The guidance requires adoption on a retrospective basis for the presentation of the service cost component and the other components of net periodic pension cost and net periodic post-retirement benefit cost in the income statement and on a prospective basis for the capitalization of the service cost component of net periodic pension cost and net periodic post-retirement benefit in assets. We will adopt this ASU on January 1, 2018. This ASU is not expected to have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting.” This update provides clarity on when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The amendments in this ASU are effective for us January 1, 2018 and are required to be adopted prospectively. We will adopt this ASU on January 1, 2018. This ASU is not expected to have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This update improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments in this ASU are effective for us January 1, 2019. Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required to be adopted prospectively. We are currently evaluating the impact of this ASU on our consolidated financial statements. On February 14, 2018 the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI).” These amendments provide an option to reclassify stranded tax effects with AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate tax rate in the Tax Cuts and Jobs Act ( or portion thereof) is recorded. The ASU requires financial statement disclosures that indicate a description of the accounting policy for releasing income tax effects from AOCI; whether there is an election to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act, and information about the other income tax effects are reclassified. These amendments affect any organization that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this ASU are effective for us January 1, 2019. We are currently evaluating the impact of this ASU on our consolidated financial statements. |
Merger of FMC Technologies and Technip (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquisition-date fair value of the consideration transferred | The acquisition-date fair value of the consideration transferred consisted of the following:
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Schedule of assets acquired and liabilities assumed | Assets Acquired and Liabilities Assumed The following table summarizes the final allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date:
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Schedule of final allocation of goodwill | The final allocation of goodwill to the reporting segments based on the final valuation is as follows:
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Schedule of acquired identifiable intangible assets | The identifiable intangible assets acquired include the following:
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Schedule of pro forma impact of the merger | The following unaudited supplemental pro forma results present consolidated information as if the Merger had been completed as of January 1, 2016. The pro forma results do not include any potential synergies, cost savings or other expected benefits of the Merger. Accordingly, the pro forma results should not be considered indicative of the results that would have occurred if the Merger had been consummated as of January 1, 2016, nor are they indicative of future results. For comparative purposes, the weighted average shares outstanding used for the diluted earnings per share calculation for the year ended December 31, 2017 was also used to calculate the diluted earnings per share for the year ended December 31, 2016.
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Earnings Per Share (Tables) |
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Reconciliation of basic and diluted EPS | A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows:
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Impairment, Restructuring and Other Expense (Tables) |
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Impairment, restructuring and other expenses | Impairment, restructuring and other expense were as follows:
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Inventories (Tables) |
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Schedule of components of inventories | Inventories consisted of the following:
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Other Current Assets (Tables) |
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Schedule of Other Current Assets | Other current assets consisted of the following:
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Equity Method Investments (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | The following table presents summarized financial information of the equity method investments:
(1) As discussed above, in the fourth quarter of 2016, we obtained the voting control interests of legal Onshore/Offshore entities that own and account for the design, engineering and construction of Yamal. As a result of the acquisition and consolidation, we recorded $3.5 billion in cash, $601.7 million in advances to suppliers, $71.1 million in intangibles, $3.8 billion in current liabilities, $191.2 million in noncurrent liabilities, and a $7.7 million gain. (2) As of December 31, 2017, our equity method investments were no longer significant individually or in the aggregate. As such, summarized financial information for 2017 is not presented. Our income (loss) from equity affiliates included in each of our reporting segments was as follows:
Our equity investments were as follows as of December 31, 2017:
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions |
Receivables, payables, revenues and expenses which are included in our consolidated financial statements for all transactions with related parties, defined as entities related to our directors and main shareholders as well as the partners of our consolidated joint ventures, were as follows:
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Property, Plant And Equipment (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following:
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Goodwill And Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The carrying amount of goodwill by reporting segment was as follows:
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Schedule of finite-lived intangible assets | Intangible assets—The components of intangible assets were as follows:
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Other Current Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities | Other current liabilities consisted of the following:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of short-term debt and current portion of long-term debt | Short-term debt and current portion of long-term debt—Short-term debt and current portion of long-term debt consisted of the following:
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Schedule of long-term debt | Long-term debt—Long-term debt consisted of the following:
_______________________
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Schedule of maturities of long-term debt | Maturities of debt as of December 31, 2017, are payable as follows:
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Commitments and Contingent Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | At December 31, 2017, future minimum rental payments under noncancellable operating leases were:
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Schedule of guarantor obligations | Guarantees consisted of the following:
_______________________
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Stockholders' Equity (Tables) |
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of capital stock activity | The following is a summary of our capital stock activity for the years ended December 31, 2017, 2016 and 2015:
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Schedule of accumulated other comprehensive loss | Accumulated other comprehensive income (loss)—Accumulated other comprehensive income (loss) consisted of the following:
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Reclassification out of accumulated other comprehensive income | Reclassifications out of accumulated other comprehensive income (loss)—Reclassifications out of accumulated other comprehensive income (loss) consisted of the following:
_______________________
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of domestic and foreign components of income before taxes | U.S. and outside U.S. components of income (loss) before income taxes were as follows:
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Provision for income taxes | The provision for income taxes consisted of:
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Deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities were as follows:
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Unrecognized tax benefits and associated interest and penalties | The following table presents a summary of changes in our unrecognized tax benefits and associated interest and penalties(1):
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Reconciliation of effective tax rate | The effective income tax rate was different from the statutory federal income tax rate due to the following:
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Pension and Other Post-Retirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of funded status | The funded status of our U.S. Pension Plans, certain foreign pension plans and U.S. post-retirement health care and life insurance benefit plans, together with the associated balances recognized in our consolidated balance sheets as of December 31, 2017 and 2016, were as follows:
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Schedule of funded status recognized in the consolidated balance sheets |
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Schedule of pre-tax amounts in accumulated other comprehensive (income) loss | The following table summarizes the pre-tax amounts in accumulated other comprehensive (income) loss at December 31, 2017 and 2016 that have not been recognized as components of net periodic benefit cost:
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Schedule of plans with underfunded or non-funded projected benefit obligation | The following tables summarize the projected and accumulated benefit obligations and fair values of plan assets where the projected or accumulated benefit obligation exceeds the fair value of plan assets at December 31, 2017 and 2016:
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Schedule of plans with underfunded or non-funded accumulated benefit obligation |
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Schedule of components of net periodic benefit cost (income) | The following table summarizes the components of net periodic benefit cost (income) for the years ended December 31, 2017, 2016 and 2015:
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Schedule of changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | The following table summarizes changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015:
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Schedule of estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive income (loss) | The estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive income (loss) as a component of net period benefit cost (income), during the next fiscal year are as follows:
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Schedule of weighted-average assumptions | The following weighted-average assumptions were used to determine the benefit obligations:
The following weighted-average assumptions were used to determine net periodic benefit cost:
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Schedule of pension plan assets | Our pension plan assets measured at fair value on a recurring basis are as follows at December 31, 2017 and 2016. Refer to “Fair value measurements” in Note 1 to these consolidated financial statements for a description of the levels.
_______________________
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Schedule of estimated future benefit payments | The following table summarizes expected benefit payments from our various pension and post-retirement benefit plans through 2025. Actual benefit payments may differ from expected benefit payments.
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of compensation expense under stock based compensation plan | The compensation expense for nonvested share units under the Plan is as follows:
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Schedule of unrecognized compensation cost, nonvested awards | As of December 31, 2017, the portion of share-based compensation expense related to outstanding awards to be recognized in future periods is as follows:
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Summary of changes in nonvested stock awards | A summary of the nonvested performance share units awarded to employees as of December 31, 2017, and changes during the year is presented below:
(1) The Weighted-Average Grant Date Fair Value for the increase in shares due to the merger remains at $0.00 in order to recalculate the new weighted average for the December 31, 2016 nonvested shares (see Note 2). The following summarizes values for performance share activity to employees:
Restricted share units. A summary of the nonvested restricted share units awarded to employees as of December 31, 2017, and changes during the year is presented below:
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Summary of restricted stock activity | The following summarizes values for restricted share unit activity to employees(1):
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Schedule of weighted average assumptions | The weighted average assumptions for the option awards granted in the years ended December 31, 2017, 2016 and 2015 are as follows:
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Summary of option transactions | The following is a summary of option transactions during years ended December 31, 2017, 2016 and 2015:
(1) The Weighted-Average Grant Date Fair Value for the increase in shares due to the merger remains at $0.00 in order to recalculate the new weighted average for the December 31, 2016 nonvested shares (see Note 2) |
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Summary of additional information concerning outstanding and exercisable options | The following summarizes additional information concerning outstanding and exercisable options at December 31, 2017 :
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Derivative Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of notional amounts of outstanding derivative positions | Foreign exchange rate instruments embedded in purchase and sale contracts – The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or conduct business in internationally recognized and traded currencies. At December 31, 2017, our portfolio of these instruments included the following material net positions:
We hold the following types of derivative instruments: Foreign exchange rate forward contracts – The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies and recorded assets and liabilities in our consolidated balance sheets. At December 31, 2017, we held the following material net positions:
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Schedule of fair value of derivative instruments | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets.
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Schedule of location of fair value hedge gain (loss) recognized in income | The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as fair value hedges.
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Schedule of location of gains (losses) related to derivative instruments designated as cash flow hedges | The following tables present the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as cash flow hedges.
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Schedule of cash flow hedge |
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Schedule of location of gain (loss) recognized in income | The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments not designated as hedging instruments.
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Schedule of derivative assets, gross and net | The following tables present both gross information and net information of recognized derivative instruments:
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Schedule of derivative liabilities, gross and net |
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
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Schedule of changes in fair value of level 3 mandatorily redeemable financial liabilities | Changes in the fair value of our Level 3 mandatorily redeemable financial liability is presented below. Since the liability was created during the three months ended December 31, 2016, no changes in fair value are presented for the prior period.
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Schedule of fair value of debt | Other fair value disclosures: Fair value of debt—The fair value of our Synthetic Bonds, Senior Notes and private placement notes are as follows:
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Business Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenue, segment operating profit and corporate items | Segment revenue and segment operating profit
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Segment operating capital employed and segment assets | Segment assets
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Geographic segment information | Geographic segment information Geographic segment sales were identified based on the location where our products and services were delivered.
Geographic segment long-lived assets represent property, plant and equipment, net.
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Reconciliation of other significant reconciling items from segments to consolidated | Other business segment information
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Quarterly Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information |
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Schedule II - Valuation and Qualifying Accounts (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts |
______________________________
|
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue recognition, contract estimate increase (decrease) | $ 378.4 | |
Minimum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets, useful life | 2 years | |
Minimum | Vessels | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Minimum | Buildings | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Minimum | Machinery and equipment | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Minimum | Software and software development costs | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets, useful life | 3 years | |
Maximum | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets, useful life | 20 years | |
Maximum | Vessels | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Maximum | Buildings | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 50 years | |
Maximum | Machinery and equipment | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 20 years | |
Maximum | Software and software development costs | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets, useful life | 10 years | |
Maximum | Internet website costs | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Intangible assets, useful life | 3 years | |
LNG | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue recognition, contract estimate increase (decrease) | $ 325.0 | |
EPCI One | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue recognition, contract estimate increase (decrease) | $ 53.4 |
Merger of FMC Technologies and Technip (Narrative) (Details) $ in Millions |
11 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jan. 16, 2017 |
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|||
Business Acquisition [Line Items] | |||||||
Merger transaction and integration costs | $ 101.8 | $ 92.6 | $ 0.0 | ||||
FMC Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of business acquired | 100.00% | ||||||
FMCTI Merger | |||||||
Business Acquisition [Line Items] | |||||||
FMC Technologies, Inc. exchange ratio | [1] | 0.5 | |||||
Revenues contributed | $ 3,441.1 | ||||||
Net income (loss) contributed | $ 251.2 | ||||||
Technip | |||||||
Business Acquisition [Line Items] | |||||||
FMC Technologies, Inc. exchange ratio | 2.0 | ||||||
FMC Technologies | |||||||
Business Acquisition [Line Items] | |||||||
FMC Technologies, Inc. exchange ratio | 1.0 | ||||||
|
Merger of FMC Technologies and Technip (Acquisition Date Fair Value) (Details) $ / shares in Units, shares in Millions, $ in Millions |
Jan. 16, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2017
shares
|
Dec. 31, 2016
shares
|
|||||
---|---|---|---|---|---|---|---|---|
Business Acquisition [Line Items] | ||||||||
Shares subject to exchange (in shares) | 465.1 | 118.9 | ||||||
Euro to U.S. dollar exchange rate | 1.0594 | |||||||
Technip | ||||||||
Business Acquisition [Line Items] | ||||||||
FMC Technologies, Inc. exchange ratio | 2.0 | |||||||
FMCTI Merger | ||||||||
Business Acquisition [Line Items] | ||||||||
Shares subject to exchange (in shares) | 228.9 | |||||||
FMC Technologies, Inc. exchange ratio | [1] | 0.5 | ||||||
Shares of TechnipFMC issued (in shares) | 114.4 | |||||||
Value per share of Technip (usd per share) | $ / shares | [2] | $ 71.40 | ||||||
Total purchase consideration | $ | $ 8,170.7 | |||||||
|
Merger of FMC Technologies and Technip (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Jan. 16, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,929.8 | $ 3,718.3 | $ 3,786.5 | $ 4,114.2 | |
FMCTI Merger | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,479.2 | ||||
Accounts receivable | 647.8 | ||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 599.6 | ||||
Inventory | 764.8 | ||||
Income taxes receivable | 139.2 | ||||
Other current assets | 282.2 | ||||
Property, plant and equipment | 1,293.3 | ||||
Intangible assets | 1,390.3 | ||||
Other long-term assets | 167.3 | ||||
Total identifiable assets acquired | 6,763.7 | ||||
Short-term and current portion of long-term debt | 319.5 | ||||
Accounts payable, trade | 386.0 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 454.0 | ||||
Income taxes payable | 92.1 | ||||
Other current liabilities | 524.3 | ||||
Long-term debt, less current portion | 1,444.2 | ||||
Accrued pension and other post-retirement benefits, less current portion | 195.5 | ||||
Deferred income taxes | 199.7 | ||||
Other long-term liabilities | 138.7 | ||||
Total liabilities assumed | 3,754.0 | ||||
Net identifiable assets acquired | 3,009.7 | ||||
Goodwill | 5,161.0 | ||||
Net assets acquired | $ 8,170.7 |
Merger of FMC Technologies and Technip (Goodwill Allocation) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Jan. 16, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,929.8 | $ 3,718.3 | $ 3,786.5 | $ 4,114.2 | |
Subsea | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 5,470.4 | 2,931.1 | 2,977.4 | 3,232.0 | |
Onshore/Offshore | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 2,461.6 | 787.2 | 809.1 | 882.2 | |
Surface Technologies | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 997.8 | $ 0.0 | $ 0.0 | $ 0.0 | |
FMCTI Merger | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,161.0 | ||||
FMCTI Merger | Subsea | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 2,527.7 | ||||
FMCTI Merger | Onshore/Offshore | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,635.5 | ||||
FMCTI Merger | Surface Technologies | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 997.8 |
Merger of FMC Technologies and Technip (Identifiable Intangible Assets) (Details) - FMCTI Merger $ in Millions |
Jan. 16, 2017
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 1,390.3 |
Technology-Based Intangible Assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 240.0 |
Estimated Useful Lives | 10 years |
Order or Production Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 175.0 |
Estimated Useful Lives | 2 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 285.0 |
Estimated Useful Lives | 10 years |
Trade Names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 635.0 |
Estimated Useful Lives | 20 years |
Computer Software, Intangible Asset | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total identifiable intangible assets acquired | $ 55.3 |
Merger of FMC Technologies and Technip (Pro Forma Impact) (Details) - FMCTI Merger - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | ||
Revenue | $ 15,169.8 | $ 13,727.9 |
Net income attributable to TechnipFMC adjusted for dilutive effects | $ 28.5 | $ 291.8 |
Diluted earnings per share (usd per share) | $ 0.06 | $ 0.62 |
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 | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income attributable to TechnipFMC plc | $ 113.3 | $ 393.3 | $ 14.4 | ||||||||
After-tax interest expense related to dilutive shares | 0.0 | 1.5 | 2.5 | ||||||||
Net income attributable to TechnipFMC plc adjusted for dilutive effects | $ 113.3 | $ 394.8 | $ 16.9 | ||||||||
Weighted average number of shares outstanding | 466.7 | 119.4 | 114.9 | ||||||||
Total shares and dilutive securities (in shares) | 468.3 | 125.1 | 127.3 | ||||||||
Basic earnings per share attributable to TechnipFMC plc (usd per share) | $ (0.33) | $ 0.26 | $ 0.35 | $ (0.04) | $ (1.13) | $ 2.50 | $ 0.87 | $ 1.02 | $ 0.24 | $ 3.29 | $ 0.13 |
Diluted earnings per share attributable to TechnipFMC plc (usd per share) | $ (0.33) | $ 0.26 | $ 0.35 | $ (0.04) | $ (1.13) | $ 2.39 | $ 0.83 | $ 0.97 | $ 0.24 | $ 3.16 | $ 0.13 |
Restricted Stock Units (RSUs) | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive effect of share-based payment arrangements (in shares) | 0.2 | 0.0 | 0.0 | ||||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive effect of share-based payment arrangements (in shares) | 0.0 | 0.0 | 0.0 | ||||||||
Performance shares | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive effect of share-based payment arrangements (in shares) | 1.4 | 0.5 | 0.6 | ||||||||
Convertible debt securities | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dilutive effect of convertible bonds (in shares) | 0.0 | 5.2 | 11.8 |
Impairment, Restructuring and Other Expense (Details) employee in Thousands, $ in Millions |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2015
employee
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Restructuring and Impairment [Line Items] | ||||
Impairment expense | $ 34.3 | $ 38.2 | $ 45.2 | |
Charges | 157.2 | 304.8 | 392.9 | |
Restructuring and impairment expense | 191.5 | 343.0 | 438.1 | |
Restructuring workforce reduction | employee | 6 | |||
Subsea | ||||
Restructuring and Impairment [Line Items] | ||||
Impairment expense | 11.5 | 23.0 | 42.9 | |
Charges | 88.4 | 58.7 | 34.0 | |
Onshore/Offshore | ||||
Restructuring and Impairment [Line Items] | ||||
Impairment expense | 0.0 | 14.6 | 0.0 | |
Charges | 27.0 | 214.4 | 342.2 | |
Surface Technologies | ||||
Restructuring and Impairment [Line Items] | ||||
Impairment expense | 10.2 | 0.0 | 0.0 | |
Charges | 9.0 | 0.0 | 0.0 | |
Corporate and other | ||||
Restructuring and Impairment [Line Items] | ||||
Impairment expense | 12.6 | 0.6 | 2.3 | |
Charges | $ 32.8 | $ 31.7 | $ 16.7 |
Inventories (Components Of Inventories) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||
Raw materials | $ 271.4 | $ 240.4 |
Work in process | 130.2 | 36.0 |
Finished goods | 585.4 | 58.3 |
Inventory, net | $ 987.0 | $ 334.7 |
Inventories Narrative (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves | $ 70,800,000 | $ 38,800,000 |
LIFO inventory amount | 300,900,000 | $ 0 |
Replacement costs over stated LIFO value | 600,000 | |
Effect of LIFO inventory liquidation on income | $ 0 |
Other Current Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Current Assets [Abstract] | ||
Value-added tax receivables | $ 532.5 | $ 319.4 |
Other tax receivables | 155.8 | 124.9 |
Prepaid expenses | 136.2 | 106.4 |
Held-to-maturity investments (short-term) | 60.0 | 0.0 |
Assets held for sale | 50.2 | 2.2 |
Available-for-sale securities (short-term) | 9.9 | 0.0 |
Other | 261.6 | 246.3 |
Other current assets | $ 1,206.2 | $ 799.2 |
Equity Method Investments (Percentage Owned and Carrying Value) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Carrying value | $ 272.5 | $ 235.4 |
Technip Odebrecht PLSV CV | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value | $ 111.4 | |
Dofcon Brasil AS | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50.00% | |
Carrying value | $ 74.1 | |
Serimax Holdings SAS | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% | |
Carrying value | $ 25.1 | |
FSTP Brasil Ltda | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 25.00% | |
Carrying value | $ 21.5 | |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value | $ 40.4 |
Equity Method Investments (Income (Loss) From Equity Affiliates by Segment) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Schedule of Equity Method Investments [Line Items] | |||
Income from equity affiliates | $ 55.6 | $ 117.7 | $ 51.0 |
Subsea | |||
Schedule of Equity Method Investments [Line Items] | |||
Income from equity affiliates | 55.3 | 35.0 | 21.2 |
Onshore/Offshore | |||
Schedule of Equity Method Investments [Line Items] | |||
Income from equity affiliates | 0.3 | 82.7 | 29.8 |
Surface Technologies | |||
Schedule of Equity Method Investments [Line Items] | |||
Income from equity affiliates | $ 0.0 | $ 0.0 | $ 0.0 |
Technip Odebrecht PLSV CV | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Technip Odebrecht PLSV CV | Subsea | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Dofcon Brasil AS | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Dofcon Brasil AS | Subsea | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Serimax Holdings SAS | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.00% | ||
Serimax Holdings SAS | Subsea | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.00% | ||
FSTP Brasil Ltda | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.00% | ||
FSTP Brasil Ltda | Subsea | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.00% | ||
Yamgaz | Onshore/Offshore | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Equity Method Investments (Summarized Financial Information) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Current assets | $ 619.2 | [1] | $ 619.2 | [1] | $ 4,769.3 | |||
Noncurrent assets | 2,176.1 | [1] | 2,176.1 | [1] | 1,587.2 | |||
Current liabilities | 796.9 | [1] | 796.9 | [1] | 4,853.7 | |||
Noncurrent liabilities | 1,355.0 | [1] | 1,355.0 | [1] | 925.6 | |||
Revenues | 6,782.9 | [1] | 5,426.1 | |||||
Gross profit | 461.0 | [1] | 721.8 | |||||
Net income (loss) | (348.4) | [1] | $ 561.1 | |||||
Yamal | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Current liabilities | [1] | 3,800.0 | 3,800.0 | |||||
Noncurrent liabilities | [1] | 191.2 | 191.2 | |||||
Net income (loss) | [1] | 7.7 | ||||||
Cash | Yamal | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Current assets | [1] | 3,500.0 | 3,500.0 | |||||
Advances to suppliers | Yamal | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Current assets | [1] | 601.7 | 601.7 | |||||
Intangible assets | Yamal | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Noncurrent assets | [1] | $ 71.1 | $ 71.1 | |||||
|
Related Party Transactions (Details) - Equity affiliates - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Related Party Transaction [Line Items] | |||
Trade receivables(1) | $ 98.4 | $ 220.2 | |
Trade payables(2) | (121.8) | (200.0) | |
Net trade receivables/(payables) | (23.4) | 20.2 | |
Note receivables | 140.9 | 153.9 | |
Revenue | 238.1 | 284.5 | $ 413.5 |
Expenses | $ 141.4 | $ 105.5 | $ 53.4 |
Related Party Transactions (Narrative) (Details) - Equity affiliates - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Related Party Transaction [Line Items] | |||
Trade receivables | $ 98.4 | $ 220.2 | |
Trade payables | 121.8 | 200.0 | |
Note receivables | 140.9 | 153.9 | |
Revenue from related parties | 238.1 | 284.5 | $ 413.5 |
Related party expenses | 141.4 | 105.5 | 53.4 |
Anadarko | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 22.3 | ||
Revenue from related parties | 111.3 | ||
TP JGC Coral France SNC | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 42.5 | ||
Revenue from related parties | 69.9 | ||
Technip Odebrecht PLSV CV | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 13.8 | 25.8 | |
Dofcon Brasil AS | |||
Related Party Transaction [Line Items] | |||
Trade receivables | 98.8 | ||
Note receivables | 114.9 | 104.2 | |
JGC Corporation | |||
Related Party Transaction [Line Items] | |||
Trade payables | 52.4 | 50.3 | |
Related party expenses | 46.8 | ||
Chiyoda | |||
Related Party Transaction [Line Items] | |||
Trade payables | 48.3 | 64.3 | |
Related party expenses | $ 44.1 | ||
Heerema | |||
Related Party Transaction [Line Items] | |||
Trade payables | 46.0 | ||
Related party expenses | 71.3 | ||
Yamgaz | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 196.7 | $ 272.4 |
Property, Plant And Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | $ 5,819.4 | $ 4,311.9 | |
Accumulated depreciation | (1,947.9) | (1,691.8) | |
Property, plant and equipment, net | 3,871.5 | 2,620.1 | |
Depreciation expense | 370.2 | 283.2 | $ 315.3 |
Land and land improvements | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 105.2 | 17.3 | |
Buildings | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 691.2 | 337.5 | |
Vessels | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 2,246.0 | 1,921.7 | |
Machinery and equipment | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 1,892.2 | 1,056.6 | |
Office fixtures and furniture | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 350.4 | 292.0 | |
Construction in process | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | 136.7 | 310.5 | |
Other | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, gross | $ 397.7 | $ 376.3 |
Goodwill And Intangible Assets (Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | |||
Beginning balance | $ 3,718.3 | $ 3,786.5 | $ 4,114.2 |
Additions due to business combinations | 5,165.9 | 0.0 | 41.9 |
Impairment | 0.0 | 0.0 | 0.0 |
Translation | 45.6 | (68.2) | (369.6) |
Ending balance | 8,929.8 | 3,718.3 | 3,786.5 |
Subsea | |||
Goodwill [Roll Forward] | |||
Beginning balance | 2,931.1 | 2,977.4 | 3,232.0 |
Additions due to business combinations | 2,532.6 | 0.0 | 41.9 |
Impairment | 0.0 | 0.0 | 0.0 |
Translation | 6.7 | (46.3) | (296.5) |
Ending balance | 5,470.4 | 2,931.1 | 2,977.4 |
Onshore/Offshore | |||
Goodwill [Roll Forward] | |||
Beginning balance | 787.2 | 809.1 | 882.2 |
Additions due to business combinations | 1,635.5 | 0.0 | 0.0 |
Impairment | 0.0 | 0.0 | 0.0 |
Translation | 38.9 | (21.9) | (73.1) |
Ending balance | 2,461.6 | 787.2 | 809.1 |
Surface Technologies | |||
Goodwill [Roll Forward] | |||
Beginning balance | 0.0 | 0.0 | 0.0 |
Additions due to business combinations | 997.8 | 0.0 | 0.0 |
Impairment | 0.0 | 0.0 | 0.0 |
Translation | 0.0 | 0.0 | 0.0 |
Ending balance | $ 997.8 | $ 0.0 | $ 0.0 |
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | $ 1,820.7 | $ 419.6 |
Intangible assets, accumulated amortization | 486.9 | 245.9 |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 240.0 | 0.0 |
Intangible assets, accumulated amortization | 25.0 | 0.0 |
Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 175.0 | 0.0 |
Intangible assets, accumulated amortization | 118.0 | 0.0 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 285.0 | 0.0 |
Intangible assets, accumulated amortization | 29.0 | 0.0 |
Licenses, patents and trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 810.1 | 167.3 |
Intangible assets, accumulated amortization | 157.7 | 120.9 |
Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 237.9 | 154.7 |
Intangible assets, accumulated amortization | 145.5 | 107.4 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 72.7 | 97.6 |
Intangible assets, accumulated amortization | $ 11.7 | $ 17.6 |
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill [Line Items] | |||
Risk-adjusted discount rate | 10.80% | ||
Amortization | $ 244.5 | $ 17.5 | $ 23.4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization expense, 2018 | 173.5 | ||
Amortization expense, 2019 | 124.1 | ||
Amortization expense, 2020 | 114.8 | ||
Amortization expense, 2021 | 109.1 | ||
Amortization expense, 2022 | 106.6 | ||
Amortization expense, Thereafter | $ 705.7 | ||
Minimum | |||
Goodwill [Line Items] | |||
Reporting unit, percentage of fair value in excess of carrying amount | 15.00% | ||
Maximum | |||
Goodwill [Line Items] | |||
Reporting unit, percentage of fair value in excess of carrying amount | 200.00% |
Other Current Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Liabilities, Current [Abstract] | ||
Warranty accruals on completed contracts | $ 321.3 | $ 271.9 |
Contingencies related to completed contracts | 214.9 | 370.1 |
Other taxes payable | 204.4 | 143.5 |
Social security liability | 145.0 | 66.3 |
Compensation accrual | 123.5 | 27.5 |
Redeemable financial liability | 69.7 | 33.7 |
Liabilities held for sale | 13.7 | 0.0 |
Other accrued liabilities | 595.4 | 504.6 |
Total other current liabilities | $ 1,687.9 | $ 1,417.6 |
Debt (Short-Term Debt And Current Portion Of Long-Term Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt [Abstract] | ||
Convertible bonds due 2017 | $ 0.0 | $ 524.5 |
Bank borrowings | 48.9 | 138.8 |
Other | 28.2 | 20.3 |
Total short-term debt and current portion of long-term debt | $ 77.1 | $ 683.6 |
Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Mar. 29, 2017 |
Dec. 31, 2016 |
Oct. 31, 2013 |
Jun. 30, 2012 |
Jul. 27, 2010 |
||
---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||
Unamortized debt issuance costs and discounts | $ (13.8) | $ (14.2) | ||||||
Total debt | 3,855.0 | 2,552.9 | ||||||
Less: current borrowings | (77.1) | (683.6) | ||||||
Long-term debt | 3,777.9 | 1,869.3 | ||||||
Commercial paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | [1] | 1,450.4 | 210.8 | |||||
Synthetic bonds due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 502.4 | 431.8 | ||||||
Convertible debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 524.5 | |||||||
Senior notes | 3.45% Senior Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.45% | 3.45% | 3.45% | |||||
Long-term Debt, Gross | $ 500.0 | |||||||
Unsecured debt | 5.00% Notes due 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | |||||
Long-term Debt, Gross | $ 239.9 | $ 210.8 | ||||||
Unsecured debt | 3.40% Notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.40% | 3.40% | 3.40% | |||||
Long-term Debt, Gross | $ 179.9 | $ 158.1 | ||||||
Unsecured debt | 3.15% Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | |||||
Long-term Debt, Gross | $ 155.9 | $ 137.0 | ||||||
Unsecured debt | 3.15% Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | |||||
Long-term Debt, Gross | $ 149.9 | $ 131.8 | ||||||
Unsecured debt | 4.00% Notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | |||||
Long-term Debt, Gross | $ 89.9 | $ 79.1 | ||||||
Unsecured debt | 4.00% Notes due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | |||||
Long-term Debt, Gross | $ 119.9 | $ 105.4 | ||||||
Unsecured debt | 3.75% Notes due 2033 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||||
Long-term Debt, Gross | $ 119.9 | $ 105.4 | ||||||
Bank borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 332.5 | 452.1 | ||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 28.2 | 20.3 | ||||||
Revolving credit facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 0.0 | 0.0 | ||||||
Bilateral credit facilities | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 0.0 | $ 0.0 | ||||||
|
Debt (Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Maturities of Long-term Debt [Abstract] | ||
Total debt | $ 3,855.0 | $ 2,552.9 |
Less than 1 year | 77.1 | |
1-3 years | 1,972.9 | |
3-5 years | 1,179.0 | |
After 5 years | $ 626.0 |
Debt (Revolving Credit Facility) (Details) |
Jan. 17, 2017
USD ($)
|
Dec. 31, 2017 |
---|---|---|
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Capitalization ratio | 0.6 | |
Line of Credit | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | |
Line of credit facility, conditional increase in maximum borrowing | 500,000,000 | |
Line of Credit | JPMorgan Chase Bank | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |
LIBOR and EURIBOR rate | Minimum | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.82% | |
LIBOR and EURIBOR rate | Maximum | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.30% | |
Base rate | Minimum | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.00% | |
Base rate | Maximum | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.30% | |
Federal funds rate and overnight bank funding rate spread | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
London Interbank Offered Rate (LIBOR) | Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% |
Debt (Bilateral Credit Facilities) (Details) - Line of Credit - Bilateral credit facilities - EUR (€) |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | € 340,000,000 | |
Bilateral credit facility expiring in May 2019, tranche one | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 80,000,000 | |
Bilateral credit facility expiring in May 2019, tranche two | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | € 80,000,000 | |
Bilateral credit facility expiring in June 2019 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 80,000,000 | |
Bilateral credit facility expiring in May 2021 | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | € 100,000,000 |
Debt (Commercial Paper) (Details) - Commercial paper € in Millions, $ in Millions |
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
EUR (€)
|
---|---|---|
U.S. dollar | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ | $ 1,500.0 | |
Weighted average interest rate | 1.78% | 1.78% |
Euro | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | € | € 1,000.0 | |
Weighted average interest rate | (0.27%) | (0.27%) |
Debt (Synthetic Bonds) (Details) - Convertible debt - Synthetic bonds due 2021 |
Mar. 10, 2016
EUR (€)
€ / shares
|
Mar. 03, 2016
EUR (€)
€ / shares
|
Feb. 03, 2016
€ / shares
|
Jan. 25, 2016
EUR (€)
|
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | € 375,000,000 | |||
Interest rate, stated percentage | 0.875% | |||
Debt instrument, face amount, additional debt issued | € 75,000,000 | |||
Debt instrument, unamortized premium, percentage | 112.43802% | |||
Debt instrument, convertible, share reference price | € / shares | € 48.8355 | € 40.7940 | ||
Debt instrument, convertible, conversion premium, percentage | 40.00% | |||
Debt instrument, convertible, conversion price | € / shares | € 28.8632 | € 57.1116 | ||
Debt instrument, convertible, conversion ratio | 3,464.6193 | |||
Debt instrument, face amount of individual bonds issued | € 100,000 |
Debt (Convertible Bonds) (Details) - Convertible debt - 2011-2017 Convertible Bonds € in Millions, $ in Millions |
1 Months Ended | |
---|---|---|
Dec. 31, 2011
USD ($)
|
Dec. 15, 2011
EUR (€)
bonds
|
|
Debt Instrument [Line Items] | ||
Debt instrument, convertible, number of convertible bonds issued | bonds | 5,178,455 | |
Debt instrument, face amount | € | € 497.6 | |
Proceeds from convertible debt | $ | $ 936.4 |
Debt (Senior Notes) (Details) - Senior notes - USD ($) |
Mar. 29, 2017 |
Dec. 31, 2017 |
Feb. 28, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Debt instrument, maximum aggregate principal amount | $ 800,000,000 | |||
2017 FMC Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maximum aggregate principal amount | $ 300,000,000 | |||
Interest rate, stated percentage | 2.00% | |||
Debt instrument, face amount | $ 215,400,000 | |||
3.45% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maximum aggregate principal amount | $ 500,000,000 | |||
Interest rate, stated percentage | 3.45% | 3.45% | 3.45% | |
Debt instrument, redemption price, percentage | 100.00% | |||
Debt instrument, face amount | $ 459,800,000 |
Debt (Private Placement Notes) (Details) - Unsecured debt - EUR (€) |
Dec. 31, 2017 |
Dec. 31, 2016 |
Oct. 31, 2013 |
Jun. 30, 2012 |
Jul. 27, 2010 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 355,000,000 | € 325,000,000 | |||
5.00% Notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 200,000,000 | ||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | ||
3.40% Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 150,000,000 | ||||
Interest rate, stated percentage | 3.40% | 3.40% | 3.40% | ||
4.00% Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 75,000,000 | ||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | ||
4.00% Notes due 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 100,000,000 | ||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | ||
3.75% Notes due 2033 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 100,000,000 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | ||
3.15% Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 130,000,000 | ||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | ||
3.15% Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € 125,000,000 | ||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% |
Debt (Term Loan) (Details) - Term loan £ in Millions |
Dec. 31, 2016
GBP (£)
|
---|---|
Debt Instrument [Line Items] | |
Debt instrument, face amount | £ 160.0 |
Interest rate, stated percentage | 2.813% |
Other Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Asset Acquisition, gain recognized | $ 7.7 | |
Redeemable financial liability | 174.8 | |
Less: Gains (losses) recognized in interest expense | $ (293.7) | |
Other Current Liabilities | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Financial instruments subject to mandatory redemption, dividends owed to noncontrolling interest, current portion | $ 33.7 |
Commitments and Contingent Liabilities (Details) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
| ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2018 | $ 347.2 | |||||
2019 | 290.2 | |||||
2020 | 266.2 | |||||
2021 | 178.2 | |||||
2022 | 124.7 | |||||
Thereafter | 577.1 | |||||
Total | 1,783.6 | |||||
Less income from subleases | 6.3 | |||||
Net minimum operating lease payments | 1,777.3 | |||||
Guarantor Obligations [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | $ 4,603.6 | |||||
Indirect guarantee of indebtedness | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantor obligations, term | 5 years | |||||
Financial guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | $ 933.3 | [1] | ||||
Performance guarantees | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantor obligations, maximum exposure, undiscounted | $ 3,670.3 | [2] | ||||
|
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense | $ 369.2 | $ 313.5 | $ 381.6 |
Stockholders' Equity (Narrative) (Details) € in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
EUR (€)
|
|
Stockholders' Equity Note [Abstract] | |||||
Dividends (Note 16) | $ (60.6) | $ (262.6) | € (236.6) | $ (300.1) | € (225.8) |
Dividends, common stock, cash | € | 100.8 | 88.9 | |||
Dividends, common stock, stock | € | € 135.8 | € 136.9 | |||
Distributable reserves | 10,100.0 | ||||
Stock repurchase program, authorized amount | 500.0 | ||||
Treasury stock value, acquired, constructive retirement method | $ 58.5 |
Stockholders' Equity (Capital Stock Activity) (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Ordinary shares, shares outstanding, beginning (in shares) | 118.9 | ||
Ordinary shares, shares outstanding, ending (in shares) | 465.1 | 118.9 | |
Ordinary Shares Issued | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Ordinary shares, shares outstanding, beginning (in shares) | 119.2 | 119.0 | 113.9 |
Stock awards | 0.6 | 0.2 | 0.6 |
Treasury stock purchases | 0.0 | 0.0 | 0.0 |
Capital increase reserved for employees | 1.9 | ||
Shares acquired pursuant to liquidity contract | 0.0 | 0.0 | |
Shares sold pursuant to liquidity contract | 0.0 | 0.0 | |
Dividend payment in shares | 3.2 | 2.6 | |
Cancellation of treasury shares | (3.2) | ||
Net capital increases due to the merger of FMC Technologies and Technip | 347.4 | ||
Treasury stock cancellation due to the merger of FMC Technologies and Technip | 0.0 | ||
Treasury stock cancellations | (2.1) | ||
Net stock purchased for employee benefit trust | 0.0 | ||
Ordinary shares, shares outstanding, ending (in shares) | 465.1 | 119.2 | 119.0 |
Ordinary Shares Held in Employee Benefit Trust | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Ordinary shares, shares outstanding, beginning (in shares) | 0.0 | 0.0 | 0.0 |
Stock awards | 0.0 | 0.0 | 0.0 |
Treasury stock purchases | 0.0 | 0.0 | 0.0 |
Capital increase reserved for employees | 0.0 | ||
Shares acquired pursuant to liquidity contract | 0.0 | 0.0 | |
Shares sold pursuant to liquidity contract | 0.0 | 0.0 | |
Dividend payment in shares | 0.0 | 0.0 | |
Cancellation of treasury shares | 0.0 | ||
Net capital increases due to the merger of FMC Technologies and Technip | 0.0 | ||
Treasury stock cancellation due to the merger of FMC Technologies and Technip | 0.0 | ||
Treasury stock cancellations | 0.0 | ||
Net stock purchased for employee benefit trust | 0.1 | ||
Ordinary shares, shares outstanding, ending (in shares) | 0.1 | 0.0 | 0.0 |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Ordinary shares, shares outstanding, beginning (in shares) | 0.3 | 0.8 | 1.4 |
Stock awards | 0.0 | (0.4) | (0.5) |
Treasury stock purchases | 2.1 | 3.2 | 0.0 |
Capital increase reserved for employees | 0.0 | ||
Shares acquired pursuant to liquidity contract | 1.3 | 1.3 | |
Shares sold pursuant to liquidity contract | (1.4) | (1.4) | |
Dividend payment in shares | 0.0 | 0.0 | |
Cancellation of treasury shares | (3.2) | ||
Net capital increases due to the merger of FMC Technologies and Technip | 0.0 | ||
Treasury stock cancellation due to the merger of FMC Technologies and Technip | (0.3) | ||
Treasury stock cancellations | (2.1) | ||
Net stock purchased for employee benefit trust | 0.0 | ||
Ordinary shares, shares outstanding, ending (in shares) | 0.0 | 0.3 | 0.8 |
Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 5,044.1 | $ 4,956.4 | $ 5,296.2 |
Other comprehensive income (loss), net of tax | 98.3 | (15.3) | (375.7) |
Ending balance | 13,409.4 | 5,044.1 | 4,956.4 |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (927.1) | (855.3) | |
Other comprehensive income (loss) before reclassifications, net of tax | (87.5) | (71.8) | |
Reclassification adjustment for net (gains) losses included in net income, net of tax | 0.0 | 0.0 | |
Other comprehensive income (loss), net of tax | (87.5) | (71.8) | |
Ending balance | (1,014.6) | (927.1) | (855.3) |
Hedging | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (127.1) | (181.5) | |
Other comprehensive income (loss) before reclassifications, net of tax | 53.7 | (65.7) | |
Reclassification adjustment for net (gains) losses included in net income, net of tax | 101.2 | 120.1 | |
Other comprehensive income (loss), net of tax | 154.9 | 54.4 | |
Ending balance | 27.8 | (127.1) | (181.5) |
Defined Pension and Other Post-Retirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (47.4) | (48.2) | |
Other comprehensive income (loss) before reclassifications, net of tax | 43.2 | 7.0 | |
Reclassification adjustment for net (gains) losses included in net income, net of tax | (12.7) | (6.2) | |
Other comprehensive income (loss), net of tax | 30.5 | 0.8 | |
Ending balance | (16.9) | (47.4) | (48.2) |
Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,101.6) | (1,085.0) | |
Other comprehensive income (loss) before reclassifications, net of tax | 9.4 | (130.5) | |
Reclassification adjustment for net (gains) losses included in net income, net of tax | 88.5 | 113.9 | |
Other comprehensive income (loss), net of tax | 97.9 | (16.6) | |
Ending balance | (1,003.7) | (1,101.6) | (1,085.0) |
Accumulated Other Comprehensive Loss Attributable to Non-controlling interest | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 0.2 | (1.1) | |
Other comprehensive income (loss) before reclassifications, net of tax | 0.4 | 1.3 | |
Reclassification adjustment for net (gains) losses included in net income, net of tax | 0.0 | 0.0 | |
Other comprehensive income (loss), net of tax | 0.4 | 1.3 | |
Ending balance | $ 0.6 | $ 0.2 | $ (1.1) |
Stockholders' Equity (Reclassification Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Revenue | $ 3,683.0 | $ 4,140.9 | $ 3,845.0 | $ 3,388.0 | $ 2,047.7 | $ 2,375.7 | $ 2,370.5 | $ 2,405.7 | $ 15,056.9 | $ 9,199.6 | $ 11,471.9 | |||||
Selling, general and administrative expense | (1,060.9) | (572.6) | (689.6) | |||||||||||||
Other income (expense), net | (25.9) | 6.5 | (102.9) | |||||||||||||
Income before income taxes | [1] | 679.7 | 551.4 | 150.5 | ||||||||||||
Provision (benefit) for income taxes | 545.5 | 180.3 | 136.5 | |||||||||||||
Net income | $ (127.5) | $ 117.9 | $ 159.0 | $ (15.2) | $ (155.0) | $ 301.7 | $ 103.8 | $ 120.6 | 134.2 | 371.1 | 14.0 | |||||
Defined pension and other post-retirement benefits | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Income before income taxes | 21.8 | 9.0 | (4.4) | |||||||||||||
Provision (benefit) for income taxes | 9.1 | 2.8 | (1.3) | |||||||||||||
Net income | 12.7 | 6.2 | (3.1) | |||||||||||||
Settlements and curtailments | 25.3 | [2] | 10.7 | 0.0 | ||||||||||||
Foreign exchange contract | Hedging | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Revenue | (39.3) | 0.0 | 0.0 | |||||||||||||
Costs of sales | 5.3 | 0.0 | 0.0 | |||||||||||||
Selling, general and administrative expense | 0.8 | 0.0 | 0.0 | |||||||||||||
Other income (expense), net | (102.2) | (165.7) | (93.6) | |||||||||||||
Income before income taxes | (135.4) | (165.7) | (93.6) | |||||||||||||
Provision (benefit) for income taxes | (34.2) | (45.6) | (25.8) | |||||||||||||
Net income | (101.2) | (120.1) | (67.8) | |||||||||||||
International | Pensions | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Settlements and curtailments | 1.5 | (10.7) | 0.0 | |||||||||||||
Amortization of actuarial gain (loss) | (2.5) | (1.0) | (3.7) | |||||||||||||
Amortization of prior service credit (cost) | $ (1.0) | $ (0.7) | $ (0.7) | |||||||||||||
|
Income Taxes (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jan. 17, 2017 |
Jan. 16, 2017 |
|
Income Tax [Line Items] | ||||||
Foreign tax credit carryforwards | $ 34,900,000 | $ 34,900,000 | $ 0 | |||
Foreign tax credit carryforwards, expiration date | Dec. 31, 2024 | |||||
Foreign earnings taxable as dividend | $ 1,400,000,000 | 0 | $ 0 | |||
Net operating loss carryforwards, expiration date | Dec. 31, 2018 | |||||
Unrecognized tax benefits that would impact effective tax rate | 96,300,000 | $ 96,300,000 | $ 16,600,000 | $ 0 | ||
Unrecognized tax benefits, increase from purchase accounting | $ 50,200,000 | |||||
Statutory income tax rate | 19.30% | 34.40% | 38.00% | |||
Deferred tax liabilities | 477,300,000 | $ 477,300,000 | $ 105,200,000 | |||
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, provisional income tax expense | 32,100,000 | 148,700,000 | ||||
Effective income tax rate reconciliation, repatriation of foreign earnings, amount | 2,900,000,000 | |||||
Tax Cuts and Jobs Act of 2017, deferred tax assets, tax credit carryforwards, foreign | 34,900,000 | 34,900,000 | $ 77,700,000 | |||
Tax Cuts and Job Acts of 2017, deferred tax assets, valuation allowance | 34,900,000 | 34,900,000 | 77,700,000 | |||
Tax Cuts and Jobs Act of 2017, deferred tax assets, net of valuation allowance | 0 | 0 | $ 0 | |||
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, provisional liability | 32,100,000 | 32,100,000 | ||||
Income tax holiday, aggregate dollar amount | $ 4,400,000 | |||||
Income tax holiday, income tax benefits (in dollars per share) | $ 0.01 | |||||
Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, change in tax rate, deferred tax asset, provisional income tax expense | $ 9,700,000 | |||||
Domestic tax authority | ||||||
Income Tax [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, change in tax rate, deferred tax asset, provisional income tax expense | 18,900,000 | |||||
Brazil | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 315,600,000 | 315,600,000 | ||||
Saudi Arabia | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 196,800,000 | 196,800,000 | ||||
Mexico | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 127,000,000 | 127,000,000 | ||||
France | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 93,200,000 | 93,200,000 | ||||
United Kingdom | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 121,000,000 | 121,000,000 | ||||
Finland | Foreign tax authority | ||||||
Income Tax [Line Items] | ||||||
Operating loss carryforwards | 57,700,000 | 57,700,000 | ||||
FMCTI Merger | ||||||
Income Tax [Line Items] | ||||||
Deferred tax liabilities | $ 306,300,000 | 306,300,000 | ||||
FMC Technologies | ||||||
Income Tax [Line Items] | ||||||
Foreign tax credit carryforwards | $ 2,300,000,000 | |||||
Federal, State and Foreign Tax | ||||||
Income Tax [Line Items] | ||||||
Unrecognized tax benefits, increase from purchase accounting | 48,100,000 | |||||
Federal, State and Foreign Tax | Norway | ||||||
Income Tax [Line Items] | ||||||
Unrecognized tax benefits, increase from purchase accounting | $ 45,200,000 |
Income Taxes (Domestic And Foreign Components Of Income Before Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 284.3 | $ 154.3 | $ 152.0 |
Outside United States | 395.4 | 397.1 | (1.5) |
Income before income taxes | $ 679.7 | $ 551.4 | $ 150.5 |
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current: | |||
United States | $ 30.2 | $ 54.1 | $ 10.8 |
Outside United States | 373.7 | 298.3 | 189.8 |
Total current | 403.9 | 352.4 | 200.6 |
Deferred: | |||
United States | 71.4 | (7.2) | 46.6 |
Outside United States | 70.2 | (164.9) | (110.7) |
Total deferred | 141.6 | (172.1) | (64.1) |
Provision for income taxes | $ 545.5 | $ 180.3 | $ 136.5 |
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred tax assets attributable to: | ||
Accrued expenses | $ 155.2 | $ 49.3 |
Non-deductible interest | 85.9 | 0.0 |
Foreign tax credit carryforwards | 34.9 | 0.0 |
Net operating loss carryforwards | 390.7 | 225.9 |
Inventories | 13.4 | 0.0 |
Research and development credit | 7.5 | 0.0 |
Provisions for pensions and other long-term employee benefits | 86.4 | 56.2 |
Contingencies related to contracts | 111.3 | 188.3 |
Other contingencies | 33.5 | 63.1 |
Fair value losses/gains | 12.4 | 103.1 |
Other | 11.1 | 15.1 |
Deferred tax assets | 942.3 | 701.0 |
Valuation allowance | (430.0) | (172.7) |
Deferred tax assets, net of valuation allowance | 512.3 | 528.3 |
Deferred tax liabilities attributable to: | ||
Revenue in excess of billings on contracts accounted for under the percentage of completion method | 41.2 | 0.0 |
U.S. tax on foreign subsidiaries’ undistributed earnings not indefinitely reinvested | 4.9 | 0.0 |
Foreign exchange | 21.5 | 0.0 |
Property, plant and equipment, intangibles and other assets | 403.3 | 101.1 |
Margin recognition on construction contracts | 6.4 | 4.1 |
Deferred tax liabilities | 477.3 | 105.2 |
Net deferred tax assets | $ 35.0 | $ 423.1 |
Income Taxes (Unrecognized Tax Benefits And Associated Interest And Penalties) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | $ 16.6 | $ 0.0 |
Additions for tax positions related to prior years | 0.0 | |
Reductions for tax positions related to prior years | (13.6) | |
Additions for tax positions related to current year | 43.3 | 16.6 |
Reductions for tax positions due to settlements | (0.2) | 0.0 |
Additions for tax positions related to purchase accounting | 50.2 | |
Unrecognized tax benefits, ending balance | 96.3 | 16.6 |
Federal, State and Foreign Tax | ||
Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | 16.6 | 0.0 |
Additions for tax positions related to prior years | 0.0 | |
Reductions for tax positions related to prior years | (13.6) | |
Additions for tax positions related to current year | 39.5 | 16.6 |
Reductions for tax positions due to settlements | (0.2) | 0.0 |
Additions for tax positions related to purchase accounting | 48.1 | |
Unrecognized tax benefits, ending balance | 90.4 | 16.6 |
Accrued Interest and Penalties | ||
Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | 0.0 | 0.0 |
Additions for tax positions related to prior years | 0.0 | |
Reductions for tax positions related to prior years | 0.0 | |
Additions for tax positions related to current year | 3.8 | 0.0 |
Reductions for tax positions due to settlements | 0.0 | 0.0 |
Additions for tax positions related to purchase accounting | 2.1 | |
Unrecognized tax benefits, ending balance | $ 5.9 | $ 0.0 |
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory income tax rate | 19.30% | 34.40% | 38.00% |
Foreign earnings subject to different tax rates | 18.20% | (18.50%) | 28.40% |
Net change in unrecognized tax benefits | 4.30% | 3.00% | |
Adjustments on prior year taxes | (4.40%) | 2.40% | (11.00%) |
Change in valuation allowance | 19.30% | 13.10% | 36.90% |
Deferred tax asset/liability revaluation for tax rate change | 1.40% | (0.80%) | 1.80% |
U.S. transition tax | 17.10% | ||
Other | 5.10% | (0.90%) | (3.50%) |
Effective income tax rate | 80.30% | 32.70% | 90.60% |
Pension and Other Post-Retirement Benefit Plans (Changes in Projected Benefit Obligations, Fair Value of Plan Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Amounts recognized in balance sheet | |||
Accrued pension and other post-retirement benefits, net of current portion | $ (282.0) | $ (160.8) | |
Other Post-retirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning balance | 0.9 | 0.9 | |
Service cost | 0.0 | 0.0 | $ 0.0 |
Interest cost | 0.3 | 0.0 | 0.0 |
Actuarial (gain) loss | 0.8 | 0.0 | |
Amendments | 0.0 | 0.0 | |
Curtailments | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Plan participants’ contributions | 0.0 | 0.0 | |
Benefits paid | (0.6) | 0.0 | |
Acquisition/Business Combination/Divestiture | 7.7 | 0.0 | |
Other | 0.9 | 0.0 | |
Projected benefit obligation, ending balance | 10.0 | 0.9 | 0.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 0.0 | 0.0 | |
Actual return on plan assets | 0.0 | 0.0 | |
Company contributions | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Plan participants’ contributions | 0.0 | 0.0 | |
Benefits paid | 0.0 | 0.0 | |
Acquisition/Business Combination/Divestiture | 0.0 | 0.0 | |
Other | 0.0 | 0.0 | |
Fair value of plan assets, ending balance | 0.0 | 0.0 | 0.0 |
Funded status of the plans (liability) at December 31 | (10.0) | (0.9) | |
Amounts recognized in balance sheet | |||
Other assets | 0.0 | 0.0 | |
Current portion of accrued pension and other post-retirement benefits | (0.7) | 0.0 | |
Accrued pension and other post-retirement benefits, net of current portion | (9.3) | (0.9) | |
Funded status recognized in the consolidated balance sheets at December 31 | (10.0) | (0.9) | |
Pre-tax amounts recognized in accumulated other comprehensive (income) loss: | |||
Unrecognized actuarial (gain) loss | 0.8 | 0.1 | |
Unrecognized prior service (credit) cost | 0.0 | 0.0 | |
Unrecognized transition asset | 0.0 | 0.0 | |
Accumulated other comprehensive (income) loss at December 31 | 0.8 | 0.1 | |
Plans with underfunded or non-funded projected benefit obligation: | |||
Aggregate projected benefit obligation | 9.9 | 0.8 | |
Aggregate fair value of plan assets | 0.0 | 0.0 | |
Plans with underfunded or non-funded accumulated benefit obligation: | |||
Aggregate accumulated benefit obligation | 0.0 | 0.0 | |
Aggregate fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pensions | |||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |||
Accumulated benefit obligation | 659.8 | 0.0 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning balance | 0.0 | 0.0 | |
Service cost | 10.3 | 0.0 | 0.0 |
Interest cost | 26.7 | 0.0 | 0.0 |
Actuarial (gain) loss | 56.2 | 0.0 | |
Amendments | 0.2 | 0.0 | |
Curtailments | (67.9) | 0.0 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Plan participants’ contributions | 0.0 | 0.0 | |
Benefits paid | (27.5) | 0.0 | |
Acquisition/Business Combination/Divestiture | 661.9 | 0.0 | |
Other | (0.1) | 0.0 | |
Projected benefit obligation, ending balance | 659.8 | 0.0 | 0.0 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 0.0 | 0.0 | |
Actual return on plan assets | 60.4 | 0.0 | |
Company contributions | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Plan participants’ contributions | 0.0 | 0.0 | |
Benefits paid | (24.8) | 0.0 | |
Acquisition/Business Combination/Divestiture | 540.8 | 0.0 | |
Other | 0.0 | 0.0 | |
Fair value of plan assets, ending balance | 576.4 | 0.0 | 0.0 |
Funded status of the plans (liability) at December 31 | (83.4) | 0.0 | |
Amounts recognized in balance sheet | |||
Other assets | 0.0 | 0.0 | |
Current portion of accrued pension and other post-retirement benefits | (5.4) | 0.0 | |
Accrued pension and other post-retirement benefits, net of current portion | (78.0) | 0.0 | |
Funded status recognized in the consolidated balance sheets at December 31 | (83.4) | 0.0 | |
Pre-tax amounts recognized in accumulated other comprehensive (income) loss: | |||
Unrecognized actuarial (gain) loss | 0.1 | 0.0 | |
Unrecognized prior service (credit) cost | 0.2 | 0.0 | |
Unrecognized transition asset | 0.0 | 0.0 | |
Accumulated other comprehensive (income) loss at December 31 | 0.3 | 0.0 | |
Plans with underfunded or non-funded projected benefit obligation: | |||
Aggregate projected benefit obligation | 659.8 | 0.0 | |
Aggregate fair value of plan assets | 576.4 | 0.0 | |
Plans with underfunded or non-funded accumulated benefit obligation: | |||
Aggregate accumulated benefit obligation | 659.8 | 0.0 | |
Aggregate fair value of plan assets | 576.4 | 0.0 | |
International | Pensions | |||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |||
Accumulated benefit obligation | 769.9 | 360.9 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning balance | 399.6 | 457.2 | |
Service cost | 21.0 | 11.7 | 13.7 |
Interest cost | 19.6 | 10.9 | 11.6 |
Actuarial (gain) loss | (13.5) | 39.3 | |
Amendments | 0.0 | 0.0 | |
Curtailments | (2.8) | (8.2) | |
Settlements | (13.5) | 0.0 | |
Foreign currency exchange rate changes | 68.9 | (31.1) | |
Plan participants’ contributions | 1.4 | 0.1 | |
Benefits paid | (27.6) | (24.0) | |
Acquisition/Business Combination/Divestiture | 432.3 | (52.2) | |
Other | 12.7 | (4.1) | |
Projected benefit obligation, ending balance | 898.1 | 399.6 | 457.2 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning balance | 229.7 | 236.0 | |
Actual return on plan assets | 63.3 | 29.0 | |
Company contributions | 19.1 | 0.4 | |
Foreign currency exchange rate changes | 50.4 | (26.1) | |
Settlements | (7.0) | 0.0 | |
Plan participants’ contributions | 1.4 | 0.1 | |
Benefits paid | (21.5) | (9.7) | |
Acquisition/Business Combination/Divestiture | 361.4 | 0.0 | |
Other | 2.4 | 0.0 | |
Fair value of plan assets, ending balance | 699.2 | 229.7 | $ 236.0 |
Funded status of the plans (liability) at December 31 | (198.9) | (169.9) | |
Amounts recognized in balance sheet | |||
Other assets | 0.0 | 0.0 | |
Current portion of accrued pension and other post-retirement benefits | (4.1) | (10.0) | |
Accrued pension and other post-retirement benefits, net of current portion | (194.8) | (159.9) | |
Funded status recognized in the consolidated balance sheets at December 31 | (198.9) | (169.9) | |
Pre-tax amounts recognized in accumulated other comprehensive (income) loss: | |||
Unrecognized actuarial (gain) loss | 21.2 | 63.7 | |
Unrecognized prior service (credit) cost | 5.5 | 5.7 | |
Unrecognized transition asset | 0.0 | 0.0 | |
Accumulated other comprehensive (income) loss at December 31 | 26.7 | 69.4 | |
Plans with underfunded or non-funded projected benefit obligation: | |||
Aggregate projected benefit obligation | 744.3 | 399.6 | |
Aggregate fair value of plan assets | 558.0 | 229.7 | |
Plans with underfunded or non-funded accumulated benefit obligation: | |||
Aggregate accumulated benefit obligation | 212.5 | 360.9 | |
Aggregate fair value of plan assets | $ 82.2 | $ 229.7 |
Pension and Other Post-Retirement Benefit Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Post-retirement Benefits | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 0.0 | $ 0.0 | $ 0.0 |
Interest cost | 0.3 | 0.0 | 0.0 |
Expected return on plan assets | 0.0 | 0.0 | 0.0 |
Settlement cost | 0.0 | 0.0 | 0.0 |
Curtailment benefit | 0.0 | 0.0 | 0.0 |
Amortization of net actuarial loss (gain) | 0.0 | 0.0 | 0.0 |
Amortization of prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost (income) | 0.3 | 0.0 | 0.0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial gain (loss) arising during period | (0.8) | 0.0 | 0.0 |
Prior service (cost) credit arising during period | 0.0 | 0.0 | 0.0 |
Settlements and curtailments | 0.0 | 0.0 | 0.0 |
Amortization of net actuarial loss (gain) | 0.0 | 0.0 | 0.0 |
Amortization of prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Other | 0.0 | 0.0 | 0.0 |
Total recognized in other comprehensive income (loss) | (0.8) | 0.0 | 0.0 |
U.S. | Pensions | |||
Components of net periodic benefit cost (income): | |||
Service cost | 10.3 | 0.0 | 0.0 |
Interest cost | 26.7 | 0.0 | 0.0 |
Expected return on plan assets | (45.5) | 0.0 | 0.0 |
Settlement cost | 0.0 | 0.0 | 0.0 |
Curtailment benefit | (26.8) | 0.0 | 0.0 |
Amortization of net actuarial loss (gain) | 0.0 | 0.0 | 0.0 |
Amortization of prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost (income) | (35.3) | 0.0 | 0.0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial gain (loss) arising during period | 26.7 | 0.0 | 0.0 |
Prior service (cost) credit arising during period | (0.2) | 0.0 | 0.0 |
Settlements and curtailments | (26.8) | 0.0 | 0.0 |
Amortization of net actuarial loss (gain) | 0.0 | 0.0 | 0.0 |
Amortization of prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Other | 0.0 | 0.0 | 0.0 |
Total recognized in other comprehensive income (loss) | (0.3) | 0.0 | 0.0 |
International | Pensions | |||
Components of net periodic benefit cost (income): | |||
Service cost | 21.0 | 11.7 | 13.7 |
Interest cost | 19.6 | 10.9 | 11.6 |
Expected return on plan assets | (36.3) | (8.2) | (8.6) |
Settlement cost | 1.5 | 0.0 | 0.0 |
Curtailment benefit | 0.0 | (10.7) | 0.0 |
Amortization of net actuarial loss (gain) | 2.5 | 1.0 | 3.7 |
Amortization of prior service cost (credit) | 1.0 | 0.7 | 0.7 |
Net periodic benefit cost (income) | 9.3 | 5.4 | 21.1 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial gain (loss) arising during period | 43.3 | (10.5) | 18.4 |
Prior service (cost) credit arising during period | 0.1 | 0.1 | 0.3 |
Settlements and curtailments | 1.5 | (10.7) | 0.0 |
Amortization of net actuarial loss (gain) | 2.5 | 1.0 | 3.7 |
Amortization of prior service cost (credit) | 1.0 | 0.7 | 0.7 |
Other | (5.1) | 17.6 | 8.1 |
Total recognized in other comprehensive income (loss) | $ 43.3 | $ (1.8) | $ 31.2 |
Pension and Other Post-Retirement Benefit Plans (Accumulated Other Comprehensive Income As A Component Of Net Period Benefit Cost) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Other Post-retirement Benefits | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
Net actuarial losses (gains) | $ 0.0 |
Prior service cost (credit) | 0.0 |
U.S. | Pensions | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
Net actuarial losses (gains) | 0.0 |
Prior service cost (credit) | 0.0 |
International | Pensions | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
Net actuarial losses (gains) | 1.2 |
Prior service cost (credit) | $ 1.1 |
Pension and Other Post-Retirement Benefit Plans (Weighted-Average Assumptions Used Benefit Obligations) (Details) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Pensions | U.S. | ||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||
Discount rate | 3.70% | |
Rate of compensation increase | 0.00% | |
Pensions | International | ||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||
Discount rate | 2.42% | 2.15% |
Rate of compensation increase | 2.37% | 2.80% |
Other Post-retirement Benefits | ||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||
Discount rate | 4.33% | 1.70% |
Rate of compensation increase | 4.00% |
Pension and Other Post-Retirement Benefit Plans (Weighted-Average Assumptions Used Net Periodic Benefit Cost) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other Post-retirement Benefits | |||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |||
Discount rate | 4.05% | 2.20% | 1.90% |
Rate of compensation increase | 4.00% | 3.00% | 3.00% |
U.S. | Pensions | |||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |||
Discount rate | 4.30% | ||
Rate of compensation increase | 4.00% | ||
Expected rate of return on plan assets | 9.00% | ||
International | Pensions | |||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |||
Discount rate | 2.37% | 2.80% | 2.50% |
Rate of compensation increase | 2.39% | 2.30% | 2.60% |
Expected rate of return on plan assets | 6.24% | 2.80% | 3.60% |
Pension and Other Post-Retirement Benefit Plans (Pension Plan Assets Measured At Fair Value) (Details) - Pensions - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total pension plan assets, percent | 98.00% | |||||
U.S. | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | $ 576.4 | $ 0.0 | $ 0.0 | |||
U.S. | Fair value, measurements, recurring | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 576.2 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 41.2 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | U.S. companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 131.7 | |||||
U.S. | Fair value, measurements, recurring | International companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 33.7 | |||||
U.S. | Fair value, measurements, recurring | Registered investment companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 33.6 | ||||
U.S. | Fair value, measurements, recurring | Common/collective trusts | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 31.2 | ||||
U.S. | Fair value, measurements, recurring | Hedge funds | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 194.3 | ||||
U.S. | Fair value, measurements, recurring | Limited partnerships | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 109.7 | ||||
U.S. | Fair value, measurements, recurring | Real estate and other investments | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.8 | |||||
U.S. | Fair value, measurements, recurring | Level 1 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 207.4 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Level 1 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 41.2 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Level 1 | U.S. companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 131.7 | |||||
U.S. | Fair value, measurements, recurring | Level 1 | International companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 33.7 | |||||
U.S. | Fair value, measurements, recurring | Level 1 | Real estate and other investments | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.8 | |||||
U.S. | Fair value, measurements, recurring | Level 2 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Level 2 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Level 3 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | 0.0 | ||||
U.S. | Fair value, measurements, recurring | Level 3 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | 0.0 | ||||
International | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 699.2 | 229.7 | $ 236.0 | |||
International | Fair value, measurements, recurring | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 698.4 | 229.6 | ||||
International | Fair value, measurements, recurring | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 4.8 | 2.1 | ||||
International | Fair value, measurements, recurring | U.S. companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 106.9 | |||||
International | Fair value, measurements, recurring | International companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 216.7 | 37.2 | ||||
International | Fair value, measurements, recurring | Registered investment companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 72.6 | 52.7 | |||
International | Fair value, measurements, recurring | Common/collective trusts | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 13.0 | 10.6 | |||
International | Fair value, measurements, recurring | Insurance contracts | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 208.2 | 112.2 | ||||
International | Fair value, measurements, recurring | Hedge funds | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | [1] | 74.7 | 12.3 | |||
International | Fair value, measurements, recurring | Real estate and other investments | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 1.5 | 2.5 | ||||
International | Fair value, measurements, recurring | Level 1 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 329.9 | 41.8 | ||||
International | Fair value, measurements, recurring | Level 1 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 4.8 | 2.1 | ||||
International | Fair value, measurements, recurring | Level 1 | U.S. companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 106.9 | |||||
International | Fair value, measurements, recurring | Level 1 | International companies | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 216.7 | 37.2 | ||||
International | Fair value, measurements, recurring | Level 1 | Real estate and other investments | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 1.5 | 2.5 | ||||
International | Fair value, measurements, recurring | Level 2 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 208.2 | 112.2 | ||||
International | Fair value, measurements, recurring | Level 2 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | |||||
International | Fair value, measurements, recurring | Level 2 | Insurance contracts | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 208.2 | 112.2 | ||||
International | Fair value, measurements, recurring | Level 3 | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | 0.0 | 0.0 | ||||
International | Fair value, measurements, recurring | Level 3 | Cash and cash equivalents | ||||||
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | ||||||
Total plan assets | $ 0.0 | $ 0.0 | ||||
|
Pension and Other Post-Retirement Benefit Plans (Contributions) (Details) - Pensions - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employer contributions | $ 19.1 | $ 3.0 |
International | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected employer contributions | 19.9 | |
U.S. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected employer contributions | $ 5.3 |
Pension and Other Post-Retirement Benefit Plans (Expected Benefit Payments) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Other Post-retirement Benefits | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
2018 | $ 0.7 |
2019 | 0.7 |
2020 | 0.7 |
2021 | 0.7 |
2022 | 0.7 |
2023-2027 | 2.9 |
U.S. | Pensions | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
2018 | 33.4 |
2019 | 34.1 |
2020 | 34.7 |
2021 | 35.5 |
2022 | 34.9 |
2023-2027 | 174.3 |
International | Pensions | |
Pension and Other Postretirement Benefit Plans Disclosure [Line Items] | |
2018 | 28.2 |
2019 | 30.9 |
2020 | 33.3 |
2021 | 34.4 |
2022 | 35.5 |
2023-2027 | $ 197.5 |
Pension and Other Post-Retirement Benefit Plans (Savings Plans) (Details) - Non-Qualified Plan $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred compensation, non-current | $ 29.4 |
Employer matching contributions | 20.3 |
Employer contributions | 12.5 |
Defined benefit plan, equity securities, common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred compensation plan assets | 25.1 |
Asset held in trust | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred compensation plan assets | $ 4.8 |
Share-Based Compensation (Narrative) (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Jan. 11, 2017
shares
|
Dec. 31, 2017
EUR (€)
shares
|
Dec. 31, 2016
EUR (€)
shares
|
Dec. 31, 2015
EUR (€)
shares
|
Dec. 31, 2017
USD ($)
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 2.00% | ||||
Stock options outstanding, intrinsic value | $ | $ 12,500,000 | ||||
Stock options exercisable, intrinsic value | $ | $ 0 | ||||
Number of options exercised | 0 | 25,500 | 561,700 | ||
Proceeds from stock options exercised | € | € 0 | € 1,500,000 | € 21,300,000 | ||
Stock option exercised during period, intrinsic value | € | € 0 | € 0 | € 12,900,000 | ||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 2.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected dividend yield | 4.50% | ||||
TechnipFMC plc Incentive Award Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares authorized for awards (in shares) | 24,100,000 | ||||
Vesting service | 3 years | ||||
Number of stock units outstanding to active and nonemployee directors (in units) | 64,900 |
Share-Based Compensation (Compensation Expenses Under Stock Based Compensation Plan) (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 44.4 | $ 22.0 | $ 36.1 |
Income tax benefits related to share-based compensation expense | $ 12.0 | $ 5.9 | $ 9.7 |
Share-Based Compensation (Unrecognized Compensation Cost, Nonvested Awards) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation expense not yet recognized (in millions) | $ 77.9 |
Weighted-average recognition period (in years) | 2 years 2 months 12 days |
Share-Based Compensation (Summary Of Changes In Nonvested Stock Units) (Details) - $ / shares |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 11, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Restricted Stock Units (RSUs) | |||||||
Shares [Roll Forward] | |||||||
Nonvested at beginning of period (in shares) | 0 | ||||||
Adjustment due to FMC Technologies transaction (in shares) | 213,100 | ||||||
Granted (in shares) | 1,516,900 | ||||||
Vested (in shares) | 0 | ||||||
Cancelled/forfeited (in shares) | (7,700) | ||||||
Nonvested at period end (in shares) | 1,722,300 | 0 | |||||
Weighted-Average Grant Date Fair Value [Roll Forward] | |||||||
Granted, weighted-average grant date fair value, beginning of period (in dollars per share) | $ 0.00 | ||||||
Assumed in the FMC Technologies Merger (in dollars per share) | 35.85 | ||||||
Granted, weighted-average grant date fair value (in dollars per share) | 27.54 | ||||||
Vested, weighted average grant date fair value (in dollars per share) | 0.00 | ||||||
Cancelled/forfeited, weighted-average grant date fair value (in dollars per share) | 35.85 | ||||||
Granted, weighted-average grant date fair value, period end ( in dollars per share) | $ 28.53 | $ 0.00 | |||||
Performance Share Units | |||||||
Shares [Roll Forward] | |||||||
Nonvested at beginning of period (in shares) | 1,314,600 | ||||||
Adjustment due to FMC Technologies transaction (in shares) | [1] | 1,306,000 | |||||
Granted (in shares) | 855,200 | ||||||
Vested (in shares) | (642,000) | ||||||
Cancelled/forfeited (in shares) | (85,000) | ||||||
Nonvested at period end (in shares) | 2,748,800 | 1,314,600 | |||||
Weighted-Average Grant Date Fair Value [Roll Forward] | |||||||
Granted, weighted-average grant date fair value, beginning of period (in dollars per share) | $ 60.15 | ||||||
Assumed in the FMC Technologies Merger (in dollars per share) | [1] | $ 0 | 0.00 | ||||
Granted, weighted-average grant date fair value (in dollars per share) | 31.65 | $ 42.74 | $ 43.16 | ||||
Vested, weighted average grant date fair value (in dollars per share) | 52.42 | ||||||
Cancelled/forfeited, weighted-average grant date fair value (in dollars per share) | 25.33 | ||||||
Granted, weighted-average grant date fair value, period end ( in dollars per share) | $ 25.59 | $ 60.15 | |||||
|
Share-Based Compensation (Summary Of Restricted Stock Unit Activity) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of restricted share units granted | $ 27.54 | ||
Vest date fair value of restricted share units vested (in millions) | $ 0.0 | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of restricted share units granted | $ 31.65 | $ 42.74 | $ 43.16 |
Vest date fair value of restricted share units vested (in millions) | $ 18.6 | $ 26.4 | $ 29.0 |
Share-Based Compensation (Weighted Average Assumptions) (Details) - Stock options |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.70% | 34.50% | 29.20% |
Expected term (in years) | 6 years 6 months | 4 years 2 months 12 days | 4 years 2 months 12 days |
Risk-free interest rate | 2.10% | 0.00% | 1.10% |
Share-Based Compensation (Summary of Option Transactions) (Details) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jan. 11, 2017
$ / shares
|
Dec. 31, 2017
$ / shares
shares
|
Dec. 31, 2017
$ / shares
€ / shares
shares
|
Dec. 31, 2016
€ / shares
shares
|
Dec. 31, 2015
€ / shares
shares
|
Dec. 31, 2014
€ / shares
shares
|
||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Weighted average grant-date fair value of options granted (in dollars per share) | (per share) | $ 8.79 | € 7.70 | € 6.01 | ||||||
Stock Option Activity | |||||||||
Number of options outstanding, beginning balance | 2,188,800 | 2,188,800 | 2,420,500 | 2,520,500 | |||||
Number of options adjusted due to FMC technologies transaction | [1] | 2,188,800 | 2,188,800 | ||||||
Number of options granted | 798,400 | 798,400 | 595,100 | 568,600 | |||||
Number of options exercised | 0 | 0 | (25,500) | (561,700) | |||||
Number of options cancelled | (292,200) | (292,200) | (801,300) | (106,900) | |||||
Number of options outstanding, ending balance | 4,883,800 | 4,883,800 | 2,188,800 | 2,420,500 | 2,520,500 | ||||
Stock Option Weighted Average Exercise Price | |||||||||
Options outstanding, weighted average exercise price per share, beginning balance (in dollars per share) | € / shares | € 61.72 | € 61.88 | € 60.03 | ||||||
Options adjusted due to FMC Technologies transaction, weighted average exercise price per share (in dollars per share) | $ / shares | [1] | $ 0 | $ 0.00 | ||||||
Options granted, weighted average exercise price per share (in dollars per share) | (per share) | 29.29 | 48.33 | 47.83 | ||||||
Options exercised, weighted average exercise price per share (in dollars per share) | (per share) | 0.00 | 57.22 | 37.87 | ||||||
Options cancelled, weighted average exercise price per share (in dollars per share) | (per share) | 47.60 | 52.43 | 69.62 | ||||||
Options outstanding, weighted average exercise price per share, ending balance (in dollars per share) | (per share) | $ 36.35 | € 61.72 | € 61.88 | € 60.03 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||||
Options outstanding, Weighted average remaining contractual term (in years) | 4 years 7 months 6 days | 4 years 7 months 6 days | 5 years | 3 years 6 months | 2 years 8 months 12 days | ||||
Options exercisable, number of options (in shares) | 1,788,800 | 1,788,800 | |||||||
Options exercisable, weighted average exercise price per share (in dollars per share) | $ / shares | $ 51.61 | € 51.61 | |||||||
Options exercisable, Weighted average remaining contractual term (in years) | 1 year 7 months 6 days | 1 year 7 months 6 days | |||||||
|
Share-Based Compensation (Outstanding and Exercisable Options) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, number of options (in options) | shares | 4,883,800 |
Options outstanding, weighted average remaining (in years) | 4 years 7 months 6 days |
Options outstanding, weighted average exercise price (in dollars per option) | $ 36.35 |
Options exercisable, number of options (in options) | shares | 1,788,900 |
Options exercisable, weighted average exercise price (in dollars per option) | $ 51.61 |
$26.00 - $33.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, number of options (in options) | shares | 3,061,900 |
Options outstanding, weighted average remaining (in years) | 6 years 4 months 24 days |
Options outstanding, weighted average exercise price (in dollars per option) | $ 27.33 |
Options exercisable, number of options (in options) | shares | 0 |
Options exercisable, weighted average exercise price (in dollars per option) | $ 0.00 |
$45.00 - $51.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, number of options (in options) | shares | 1,277,000 |
Options outstanding, weighted average remaining (in years) | 1 year |
Options outstanding, weighted average exercise price (in dollars per option) | $ 49.23 |
Options exercisable, number of options (in options) | shares | 1,244,000 |
Options exercisable, weighted average exercise price (in dollars per option) | $ 49.33 |
$55.00 - $57.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, number of options (in options) | shares | 544,900 |
Options outstanding, weighted average remaining (in years) | 3 years 2 months 12 days |
Options outstanding, weighted average exercise price (in dollars per option) | $ 56.82 |
Options exercisable, number of options (in options) | shares | 544,900 |
Options exercisable, weighted average exercise price (in dollars per option) | $ 56.82 |
Minimum | $26.00 - $33.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, lower range limit | 26.00 |
Minimum | $45.00 - $51.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, lower range limit | 45.00 |
Minimum | $55.00 - $57.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, lower range limit | 55.00 |
Maximum | $26.00 - $33.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, upper range limit | 33.00 |
Maximum | $45.00 - $51.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, upper range limit | 51.00 |
Maximum | $55.00 - $57.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, exercise price range, upper range limit | $ 57.00 |
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments and Hedges, Assets [Abstract] | ||||
Gain on cash flow hedges | $ 25.3 | |||
Loss on cash flow hedges | $ (10.3) | $ (9.0) | ||
Cash flow hedges of forecasted transactions, net of tax, AOCI | $ 28.5 | 28.5 | $ 126.5 | |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 23.0 | |||
Total derivative contracts, maturity year | 2020 |
Derivative Financial Instruments (Schedule Of Notional Amounts Of Outstanding Derivative Positions (Details) - Dec. 31, 2017 € in Millions, £ in Millions, kr in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions |
USD ($) |
EUR (€) |
GBP (£) |
CAD ($) |
BRL (R$) |
NOK (kr) |
SGD ($) |
AUD ($) |
---|---|---|---|---|---|---|---|---|
Foreign exchange forward | Australian dollar | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 122.3 | $ 156.5 | ||||||
Foreign exchange forward | Brazilian real | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 236.7 | R$ 783.1 | ||||||
Foreign exchange forward | British pound | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 191.9 | £ 142.0 | ||||||
Foreign exchange forward | Canadian dollar | Notional amount sold | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 144.9 | $ 181.9 | ||||||
Foreign exchange forward | Euro | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 425.6 | € 354.9 | ||||||
Foreign exchange forward | Norwegian krone | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 226.3 | |||||||
Foreign exchange forward | Norwegian krone | Notional amount sold | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | kr | kr 1,857.5 | |||||||
Foreign exchange forward | Singapore dollar | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 87.0 | $ 116.2 | ||||||
Foreign exchange forward | U.S. dollar | Notional amount sold | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 647.6 | |||||||
Embedded derivative financial instruments | Norwegian krone | Notional amount sold | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 35.3 | kr 290.1 | ||||||
Embedded derivative financial instruments | U.S. dollar | Notional amount bought | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 32.8 |
Derivative Financial Instruments (Fair Value Of Derivative Instruments In Statement Of Financial Position) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 173.2 | $ 238.0 | |
Derivative liabilities | 137.1 | 410.7 | |
Foreign exchange contract | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 173.2 | 238.0 | |
Derivative liabilities | 137.1 | 410.7 | |
Call option | Long-term – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 62.2 | 180.1 | |
Derivative liabilities | 0.0 | 0.0 | |
Embedded derivative financial instruments | Long-term – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0.0 | 0.0 | |
Derivative liabilities | 62.2 | 180.1 | |
Derivatives designated as hedging instruments | Foreign exchange contract | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 93.6 | 57.9 | |
Derivative liabilities | 52.7 | 230.6 | |
Derivatives designated as hedging instruments | Foreign exchange contract | Current – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 65.6 | 47.2 | |
Derivative liabilities | 51.0 | 183.0 | |
Derivatives designated as hedging instruments | Foreign exchange contract | Long-term – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 28.0 | 10.7 | |
Derivative liabilities | 1.7 | 47.6 | |
Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 17.4 | 0.0 | |
Derivative liabilities | 22.2 | 0.0 | |
Derivatives not designated as hedging instruments | Foreign exchange contract | Current – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 12.7 | 0.0 | |
Derivative liabilities | 18.0 | ||
Derivatives not designated as hedging instruments | Foreign exchange contract | Long-term – Derivative financial instruments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 4.7 | ||
Derivative liabilities | 4.2 | 0.0 | |
Cash flow hedging | Foreign exchange contract | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) recognized in OCI (effective portion) | 72.1 | (86.1) | $ (91.6) |
Other (expense), net | Fair value hedging | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on fair value hedges recognized in earnings | $ 44.9 | $ 32.8 | $ (10.2) |
Derivative Financial Instruments (Derivative Instruments In Cash Flow Hedging Relationships Gain (Loss)) (Details) - Foreign exchange contract - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivatives (instruments not designated as hedging instruments) | $ 43.6 | $ 0.1 | $ 1.6 |
Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivatives (instruments not designated as hedging instruments) | 0.9 | 0.0 | |
Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivatives (instruments not designated as hedging instruments) | (0.3) | 0.0 | 0.0 |
Other (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income on derivatives (instruments not designated as hedging instruments) | 43.0 | 0.1 | 1.6 |
Cash flow hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into incom | (135.4) | (165.7) | (93.6) |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | 23.6 | (13.2) | (16.9) |
Cash flow hedging | Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into incom | (39.3) | 0.0 | |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | 9.5 | 0.0 | |
Cash flow hedging | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into incom | 5.3 | 0.0 | |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | (9.0) | 0.0 | |
Cash flow hedging | Selling, general and administrative expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into incom | 0.8 | ||
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | 0.1 | ||
Cash flow hedging | Other (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified from accumulated OCI into incom | (102.2) | (165.7) | (93.6) |
Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing) | $ 23.0 | $ (13.2) | $ (16.9) |
Derivative Financial Instruments (Derivative Instruments Offsetting Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Offsetting Derivative Assets [Abstract] | ||
Gross Amount Recognized | $ 173.2 | $ 238.0 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (114.4) | (236.6) |
Net Amount | $ 58.8 | $ 1.4 |
Derivative Financial Instruments (Derivative Instruments Offsetting Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amount Recognized | $ 137.1 | $ 410.7 |
Gross Amounts Not Offset Permitted Under Master Netting Agreements | (114.4) | (236.6) |
Net Amount | $ 22.7 | $ 174.1 |
Fair Value Measurements (Assets And Liabilities Measured On A Recurring Basis) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative asset | $ 58.8 | $ 1.4 | |||||
Assets held for sale | 50.2 | 2.2 | |||||
Redeemable financial liability | 174.8 | ||||||
Derivative liability | 22.7 | 174.1 | |||||
Liabilities held for sale | 13.7 | 0.0 | |||||
Fair value, measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Traded securities | [1] | 26.2 | |||||
Money market fund | 2.4 | 0.0 | |||||
Stable value fund | [2] | 0.6 | 0.0 | ||||
Available-for-sale Securities | 37.5 | 27.9 | |||||
Assets held for sale | 50.2 | 2.2 | |||||
Total assets | 290.1 | 268.1 | |||||
Liabilities held for sale | 13.7 | ||||||
Total liabilities | 462.8 | 585.5 | |||||
Fair value, measurements, recurring | Level 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Traded securities | [1] | 26.2 | |||||
Available-for-sale Securities | 37.5 | 27.9 | |||||
Total assets | 63.7 | 27.9 | |||||
Fair value, measurements, recurring | Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Money market fund | 2.4 | ||||||
Assets held for sale | 0.0 | 0.0 | |||||
Total assets | 175.6 | 238.0 | |||||
Liabilities held for sale | 0.0 | 0.0 | |||||
Total liabilities | 137.1 | 410.7 | |||||
Fair value, measurements, recurring | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Assets held for sale | 50.2 | 2.2 | |||||
Total assets | 50.2 | 2.2 | |||||
Liabilities held for sale | 13.7 | ||||||
Total liabilities | 325.7 | 174.8 | |||||
Redeemable financial liability | Fair value, measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Redeemable financial liability | 312.0 | 174.8 | |||||
Redeemable financial liability | Fair value, measurements, recurring | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Redeemable financial liability | 312.0 | 174.8 | |||||
Call option | Fair value, measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative asset | 62.2 | 180.1 | |||||
Call option | Fair value, measurements, recurring | Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative asset | 62.2 | 180.1 | |||||
Foreign exchange contract | Fair value, measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative asset | 111.0 | 57.9 | |||||
Derivative liability | 74.9 | 230.6 | |||||
Foreign exchange contract | Fair value, measurements, recurring | Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative asset | 111.0 | 57.9 | |||||
Derivative liability | 74.9 | 230.6 | |||||
Embedded derivative financial instruments | Fair value, measurements, recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative liability | 62.2 | 180.1 | |||||
Embedded derivative financial instruments | Fair value, measurements, recurring | Level 2 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Derivative liability | $ 62.2 | $ 180.1 | |||||
|
Fair Value Measurements (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Fair Value Disclosures [Abstract] | |
Sensitivity analysis of fair value, increase in liabilities, impact of 1 percent increase in discount rate | $ 6.6 |
Credit-risk-related contingent features | we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position |
Fair Value Measurements (Level 3 Reconciliation) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Fair Value Disclosures [Abstract] | |
Balance at beginning of period | $ 174.8 |
Less: Gains (losses) recognized in interest expense | (293.7) |
Less: Settlements | 156.5 |
Balance at end of period | $ 312.0 |
Fair Value Measurements (Carrying Value of Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Unamortized debt issuance costs and discounts | $ 13.8 | $ 14.2 | |||||
Carrying Amount | Synthetic bonds due 2021 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 499.2 | 428.0 | ||||
Carrying Amount | 3.45% Senior Notes due 2022 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 500.0 | |||||
Carrying Amount | 5.00% Notes due 2020 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 238.9 | 209.7 | ||||
Carrying Amount | 3.40% Notes due 2022 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 179.8 | 158.0 | ||||
Carrying Amount | 3.15% Notes due 2023 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 155.0 | 136.1 | ||||
Carrying Amount | 3.15% Notes due 2023 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 149.6 | 131.4 | ||||
Carrying Amount | 4.00% Notes due 2027 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 89.9 | 79.0 | ||||
Carrying Amount | 4.00% Notes due 2032 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 115.4 | 101.2 | ||||
Carrying Amount | 3.75% Notes due 2033 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [1] | 116.0 | 101.8 | ||||
Fair Value | Synthetic bonds due 2021 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 647.4 | 661.5 | ||||
Fair Value | 3.45% Senior Notes due 2022 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 497.7 | |||||
Fair Value | 5.00% Notes due 2020 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 265.2 | 239.0 | ||||
Fair Value | 3.40% Notes due 2022 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 199.4 | 177.8 | ||||
Fair Value | 3.15% Notes due 2023 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 167.6 | 153.1 | ||||
Fair Value | 3.15% Notes due 2023 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 161.4 | 142.8 | ||||
Fair Value | 4.00% Notes due 2027 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 99.9 | 89.6 | ||||
Fair Value | 4.00% Notes due 2032 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | 142.9 | 127.3 | ||||
Fair Value | 3.75% Notes due 2033 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||||
Senior notes | [2] | $ 126.7 | $ 107.8 | ||||
|
Business Segments (Schedule Of Segment Revenue And Segment Operating Profit) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | $ 3,683.0 | $ 4,140.9 | $ 3,845.0 | $ 3,388.0 | $ 2,047.7 | $ 2,375.7 | $ 2,370.5 | $ 2,405.7 | $ 15,056.9 | $ 9,199.6 | $ 11,471.9 | |||||
Total segment operating profit | 1,354.1 | 766.1 | 553.6 | |||||||||||||
Interest income | 140.8 | 85.3 | 77.7 | |||||||||||||
Interest expense | (456.0) | (114.1) | (148.9) | |||||||||||||
Income before income taxes | [1] | 679.7 | 551.4 | 150.5 | ||||||||||||
Operating segments | Subsea | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 5,877.4 | 5,850.5 | 6,520.6 | |||||||||||||
Total segment operating profit | 460.5 | 732.0 | 866.9 | |||||||||||||
Operating segments | Onshore/Offshore | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 7,904.5 | 3,349.1 | 4,951.3 | |||||||||||||
Total segment operating profit | 810.9 | 34.1 | (313.3) | |||||||||||||
Operating segments | Surface Technologies | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 1,274.6 | |||||||||||||||
Total segment operating profit | 82.7 | |||||||||||||||
Segment reconciling items | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenue | 0.4 | |||||||||||||||
Corporate | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Corporate expense | [2] | (359.2) | (185.9) | (331.9) | ||||||||||||
Interest income | 140.8 | 85.3 | 77.7 | |||||||||||||
Interest expense | (456.0) | (114.1) | (148.9) | |||||||||||||
Total corporate items | $ (674.4) | $ (214.7) | $ (403.1) | |||||||||||||
|
Business Segments (Segment Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total Assets | $ 28,263.7 | $ 18,679.3 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 19,978.2 | 11,052.4 |
Operating segments | Subsea | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 12,944.4 | 7,823.1 |
Operating segments | Onshore/Offshore | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 4,604.8 | 3,229.3 |
Operating segments | Surface Technologies | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 2,453.3 | |
Intercompany eliminations | ||
Segment Reporting Information [Line Items] | ||
Total Assets | (24.3) | |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 8,285.5 | $ 7,626.9 |
Business Segments (Geographic Segment Information) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 3,683.0 | $ 4,140.9 | $ 3,845.0 | $ 3,388.0 | $ 2,047.7 | $ 2,375.7 | $ 2,370.5 | $ 2,405.7 | $ 15,056.9 | $ 9,199.6 | $ 11,471.9 |
Long-lived assets | 3,871.5 | 2,620.1 | 3,871.5 | 2,620.1 | |||||||
Russia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,894.2 | 283.3 | 0.0 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,534.7 | 1,033.7 | 1,402.5 | ||||||||
Long-lived assets | 567.1 | 44.1 | 567.1 | 44.1 | |||||||
Angola | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,016.2 | 935.3 | 1,013.7 | ||||||||
Norway | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 971.2 | 574.4 | 1,293.3 | ||||||||
Long-lived assets | 321.4 | 121.9 | 321.4 | 121.9 | |||||||
Malaysia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 257.1 | 166.3 | 257.1 | 166.3 | |||||||
Brazil | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 911.1 | 1,006.9 | 1,102.3 | ||||||||
Long-lived assets | 408.3 | 319.5 | 408.3 | 319.5 | |||||||
Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 953.9 | 776.6 | 1,044.8 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 465.9 | 761.5 | 1,155.4 | ||||||||
Long-lived assets | 1,190.1 | 1,078.2 | 1,190.1 | 1,078.2 | |||||||
All Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,309.7 | 3,827.9 | $ 4,459.9 | ||||||||
Long-lived assets | $ 1,127.5 | $ 890.1 | $ 1,127.5 | $ 890.1 |
Business Segments (Other Business Segment Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 255.7 | $ 312.9 | $ 325.5 |
Depreciation and amortization | 614.7 | 300.7 | 338.7 |
Research and development expense | 212.9 | 105.4 | 95.5 |
Operating segments | Subsea | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 179.1 | 286.9 | 290.1 |
Depreciation and amortization | 507.2 | 256.8 | 295.9 |
Research and development expense | 169.2 | 75.4 | 67.1 |
Operating segments | Onshore/Offshore | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 16.2 | 26.0 | 35.4 |
Depreciation and amortization | 41.1 | 43.9 | 42.8 |
Research and development expense | 31.4 | 30.0 | 28.4 |
Operating segments | Surface Technologies | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 35.4 | 0.0 | 0.0 |
Depreciation and amortization | 63.6 | 0.0 | 0.0 |
Research and development expense | 12.3 | 0.0 | 0.0 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 25.0 | 0.0 | 0.0 |
Depreciation and amortization | 2.8 | 0.0 | 0.0 |
Research and development expense | $ 0.0 | $ 0.0 | $ 0.0 |
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 3,683.0 | $ 4,140.9 | $ 3,845.0 | $ 3,388.0 | $ 2,047.7 | $ 2,375.7 | $ 2,370.5 | $ 2,405.7 | $ 15,056.9 | $ 9,199.6 | $ 11,471.9 |
Cost of sales | 2,914.1 | 3,468.2 | 3,162.0 | 2,980.3 | 1,766.3 | 1,931.0 | 1,927.0 | 2,005.7 | |||
Net income (loss) | (127.5) | 117.9 | 159.0 | (15.2) | (155.0) | 301.7 | 103.8 | 120.6 | 134.2 | 371.1 | 14.0 |
Net income (loss) attributable to TechnipFMC plc | $ (153.9) | $ 121.0 | $ 164.9 | $ (18.7) | $ (133.8) | $ 302.4 | $ 104.0 | $ 120.7 | $ 113.3 | $ 393.3 | $ 14.4 |
Basic earnings (loss) per share (usd per share) | $ (0.33) | $ 0.26 | $ 0.35 | $ (0.04) | $ (1.13) | $ 2.50 | $ 0.87 | $ 1.02 | $ 0.24 | $ 3.29 | $ 0.13 |
Diluted earnings (loss) per share (usd per share) | $ (0.33) | $ 0.26 | $ 0.35 | $ (0.04) | $ (1.13) | $ 2.39 | $ 0.83 | $ 0.97 | $ 0.24 | $ 3.16 | $ 0.13 |
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||
Allowance for doubtful accounts | ||||||||||
Change in the Valuation and Qualifying Accounts [Abstract] | ||||||||||
Balance at Beginning of Period | $ 85.6 | $ 48.2 | $ 43.0 | |||||||
Charged to Costs and Expenses | [1] | 15.5 | 58.4 | 21.4 | ||||||
Charged to Other Accounts | [2] | 19.8 | 0.0 | 0.0 | ||||||
Deductions and Adjustments | [3] | (3.5) | (21.0) | (16.2) | ||||||
Balance at End of Period | 117.4 | 85.6 | 48.2 | |||||||
Valuation allowance for deferred tax assets | ||||||||||
Change in the Valuation and Qualifying Accounts [Abstract] | ||||||||||
Balance at Beginning of Period | 172.7 | 133.8 | 119.9 | |||||||
Charged to Costs and Expenses | [1] | 258.7 | 38.9 | 13.9 | ||||||
Charged to Other Accounts | [2] | 4.4 | 0.0 | 0.0 | ||||||
Deductions and Adjustments | [3] | (5.8) | 0.0 | 0.0 | ||||||
Balance at End of Period | $ 430.0 | $ 172.7 | $ 133.8 | |||||||
|
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