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United Kingdom
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98-1283037
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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One St. Paul’s Churchyard
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London
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United Kingdom
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EC4M 8AP
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(Address of principal executive offices)
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(Zip Code)
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Securities registered pursuant to Section 12(b) of the Act:
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||||
Title of Each Class
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Trading Symbol
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Name of Each Exchange on Which Registered
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Ordinary shares, $1.00 par value per share
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FTI
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act: None.
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Class
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Outstanding at February 25, 2020
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Ordinary shares, $1.00 par value per share
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447,064,767
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Page
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PART I
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PART II
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PART III
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PART IV
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•
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TechnipFMC will be a fully-integrated technology and services provider, driving energy development across deepwater, conventional, and unconventional resources. The Company continues to successfully demonstrate leadership in integrated subsea project delivery and is focused on replicating this success through the development of integrated production models for the surface market. TechnipFMC is also poised to benefit from service opportunities resulting from the world’s largest installed base of subsea production equipment, umbilicals, risers, and flowlines.
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•
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Technip Energies will be a leading engineering and construction player, with a robust project delivery model, strong technical capabilities, and proven track record as demonstrated by the successful execution of some of the world’s most iconic EPC projects. The new company will continue to leverage its industry-leading process technology portfolio, particularly in the areas of ethylene and hydrogen, while pursuing further opportunities to enhance and differentiate this portfolio.
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•
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Engagement in the conceptual design and integrated front-end engineering, or iFEED, of subsea development projects to create value through technology and integration of scopes (iEPCI) by simplifying field architecture and accelerating both delivery schedules and time to first production;
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•
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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, unlock stranded and/or marginal fields, and enable frontier developments;
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•
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Focus on selecting the right projects to ensure a strong and healthy backlog;
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•
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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;
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•
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Capitalize on combined competencies coming from alliances and partnerships with both clients and suppliers; and
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•
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Leverage supplier relationships to optimize supply chain market dynamics and implement greater simplification and standardization in products and processes.
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•
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Increased market adoption of integrated subsea projects, leading to further penetration of our integrated business model and higher levels of iEPCI order activity for our Company;
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•
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Growing service opportunities, driven by (i) higher levels of project activity, (ii) increased asset integrity and production management activities focused on improving uptime and production volume and lowering emissions, and (iii) increased maintenance and intervention activity resulting from an expanding and aging installed equipment base;
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•
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Smaller projects and direct awards will continue to contribute meaningfully to our order mix. In 2018 and 2019, these awards collectively represented just under one-half of our total subsea inbound orders, with the remainder being publicly announced projects and subsea service activities. Subsea tiebacks are often part of this mix, and these shorter cycle brownfield expansions provide operators with faster paybacks and higher returns;
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•
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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 our ability to offer fully integrated solutions; and
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•
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Natural gas developments are growing in prominence. We believe that more than 20 percent of offshore capital expenditures could be directed at natural gas developments by early next decade. We also anticipate that 45 percent of gas production will come from offshore, with significant growth in the Middle East (shallow water) followed by Australia (deep water) in the next five years.
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•
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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 vessel or floatover.
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•
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Semi-Submersible Platforms: These platforms are well-suited for oil field developments where subsea wells drilled by a mobile offshore drilling unit are appropriate. Semi-Submersibles can operate in a wide range of water depths and may have full drilling and large topside capabilities. We have our own unique design of low-motion Semi-Submersible platforms that can accommodate dry trees.
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•
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Tension-Leg Platforms (“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 in a cost-effective manner at quayside.
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•
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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;
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•
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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
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•
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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.
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Name
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Age
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Current Position and Business Experience (Start Date)
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Douglas J. Pferdehirt1
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56
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Executive Chairman and Chief Executive Officer (2019)
Chief Executive Officer (2017)
President and Chief Executive Officer of FMC Technologies (2016)
President and Chief Operating Officer of FMC Technologies (2015)
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Maryann T. Mannen1
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57
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Executive Vice President and Chief Financial Officer (2017)
Executive Vice President and Chief Financial Officer of FMC Technologies (2014)
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Dianne B. Ralston1
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53
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Executive Vice President, Chief Legal Officer and Secretary (2017)
Senior Vice President, General Counsel, and Secretary of FMC Technologies (2015)
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Justin Rounce1
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53
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Executive Vice President and Chief Technology Officer (2018)
President—Valves & Measurement for Schlumberger Limited (2018)
Senior Vice President—Marketing & Technology for Schlumberger Limited (2016)
Vice President—Marketing & Chief Technology Officer for Cameron International Corporation (2015)
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Agnieszka Kmieciak1
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46
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Executive Vice President—People and Culture (2018)
HR Director—Production Group for Schlumberger Limited (2017)
Talent Manager and Workforce Planning Manager for Schlumberger Limited (2015)
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Arnaud Piéton1
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46
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President—Subsea (2018)
Executive Vice President—People and Culture (2017)
President—Asia-Pacific Region of Technip (2016)
Chief Operating Officer, Subsea—Asia-Pacific Region of Technip (2014)
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Richard G. Alabaster1
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59
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Transition Manager (2019)
President—Surface Technologies (2017)
Vice President—Surface Technologies of FMC Technologies (2015)
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Barry Glickman1
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51
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President —Surface Technologies (2019)
President—Engineering, Manufacturing and Supply Chain (2017)
Vice President—Subsea Services of FMC Technologies (2015)
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Nello Uccelletti1
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66
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President and Advisor to the CEO (2019)
President—Onshore/Offshore (2017)
President—Onshore/Offshore of Technip (2014)
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Catherine MacGregor1
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47
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President—Onshore/Offshore (2019)
President—New Ventures (2019)
President—Drilling Group of Schlumberger Limited (2017)
President—Reservoir Characterization of Schlumberger Limited (2016)
President—Europe and Africa Region of Schlumberger Limited (2013)
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Christophe Bélorgeot2
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53
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Senior Vice President, Corporate Engagement (2018)
Vice President, Corporate Communications (2017)
Senior Vice President, Communications and CEO Office of Technip (2014)
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Krisztina Doroghazi3
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48
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Senior Vice President, Controller, and Chief Accounting Officer (2018)
Senior Vice President, Financing Planning and Reporting of MOL Group (2015)
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•
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demand for hydrocarbons, which is affected by worldwide population growth, economic growth rates, and general economic and business conditions;
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•
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costs of exploring for, producing, and delivering oil and natural gas;
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•
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political and economic uncertainty, and socio-political unrest;
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•
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governmental laws, policies, regulations and subsidies related to or affecting the production, use, and exportation/importation of oil and natural gas;
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•
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available excess production capacity within the Organization of Petroleum Exporting Countries (“OPEC”) and the level of oil production by non-OPEC countries;
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oil refining and transportation capacity and shifts in end-customer preferences toward fuel efficiency and the use of natural gas;
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•
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technological advances affecting energy consumption;
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development, exploitation, relative price, and availability of alternative sources of energy and our customers’ shift of capital to the development of these sources;
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volatility in, and access to, capital and credit markets, which may affect our customers’ activity levels, and spending for our products and services; and
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•
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natural disasters.
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•
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mechanical failure of our production equipment and machinery;
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•
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delays caused by local weather conditions and/or natural disasters (including earthquakes and floods); and
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a failure of suppliers, subcontractors, or joint venture partners to perform their contractual obligations.
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shortages of key equipment, materials or skilled labor;
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delays in the delivery of ordered materials and equipment;
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•
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design and engineering issues; and
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shipyard delays and performance issues.
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nationalization and expropriation;
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•
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potentially burdensome taxation;
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inflationary and recessionary markets, including capital and equity markets;
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civil unrest, labor issues, political instability, disease outbreaks, terrorist attacks, cyber terrorism, military activity, and wars;
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•
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supply disruptions in key oil producing countries;
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•
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the ability of OPEC to set and maintain production levels and pricing;
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•
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trade restrictions, trade protection measures, price controls, or trade disputes;
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sanctions, such as prohibitions or restrictions by the United States against countries that are the targets of economic sanctions, or are designated as state sponsors of terrorism;
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•
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foreign ownership restrictions;
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•
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import or export licensing requirements;
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•
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restrictions on operations, trade practices, trade partners, and investment decisions resulting from domestic and foreign laws, and regulations;
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•
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regime changes;
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changes in, and the administration of, treaties, laws, and regulations including in response to public health issues;
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•
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inability to repatriate income or capital;
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•
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reductions in the availability of qualified personnel;
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•
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foreign currency fluctuations or currency restrictions; and
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•
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fluctuations in the interest rate component of forward foreign currency rates.
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•
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make it more difficult for us to make payments on our debt;
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•
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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;
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•
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increase our vulnerability to adverse economic or industry conditions;
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•
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limit our ability to obtain additional financing to react to changes in our business; or
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•
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place us at a competitive disadvantage compared to businesses in our industry that have less debt.
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Location
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Segment
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Africa
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Dande, Angola
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Subsea
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Hassi-Messaoud, Algeria
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Surface
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Lagos, Nigeria
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Subsea
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Lobito, Angola
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Subsea
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Luanda, Angola
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Subsea
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Malabo, Equatorial Guinea
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Subsea
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Port Harcourt, Nigeria
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Subsea
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Takoradi, Ghana
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Subsea
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Asia
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Chennai, India
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Onshore/Offshore
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Dahej, India
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Onshore/Offshore
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Hyderabad, India
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Surface
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Jakarta, Indonesia
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Subsea, Onshore/Offshore, Surface
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Johor, Malaysia
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Subsea
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Kuala Lumpur, Malaysia
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Subsea, Onshore/Offshore
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Mumbai, India
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Onshore/Offshore
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New Delhi, India
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Onshore/Offshore
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Noida, India
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Subsea, Onshore/Offshore, Surface
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Nusajaya, Malaysia
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Subsea, Surface
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Singapore
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Subsea, Surface, Onshore/Offshore
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Australia
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Henderson, Australia
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Subsea
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Perth, Australia
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Subsea, Onshore/Offshore
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Europe
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Aberdeen, United Kingdom
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Subsea, Surface
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Aktau, Kazakhstan
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Subsea, Surface
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Atyrau, Kazakhstan
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Subsea, Surface
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Arnhem, The Netherlands
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Surface
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Barcelona, Spain
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Onshore/Offshore
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Bergen, Norway
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Subsea, Surface
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Compiegne, France
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Subsea
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Courbevoie (Paris - La Défense), France
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Subsea, Onshore/Offshore
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Dunfermline, United Kingdom
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Subsea, Surface
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Ellerbek, Germany
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Surface
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Evanton, United Kingdom
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Subsea
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Horten, Norway
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Subsea
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Kongsberg, Norway
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Subsea, Surface
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Krakow, Poland
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Subsea
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La Garenne Colombes, France
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Onshore/Offshore
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Le Trait, France
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Subsea
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Lisbon, Portugal
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Subsea
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London, United Kingdom
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Subsea, Onshore/Offshore
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Lyon, France
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Onshore/Offshore
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Moscow, Russia
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Subsea, Onshore/Offshore, Surface
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Newcastle, United Kingdom
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Subsea
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Lysaker, Norway
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Subsea, Onshore/Offshore
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Orkanger, Norway
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Subsea
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Rome, Italy
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Onshore/Offshore
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Schoonebeek, Netherlands
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Surface
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Sens, France
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|
Surface
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St. Petersburg, Russia
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Subsea, Onshore/Offshore
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Stavanger, Norway
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Subsea, Surface
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Zoetermeer, Netherlands
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Onshore/Offshore
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Middle East
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Abu Dhabi, United Arab Emirates
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Onshore/Offshore, Surface
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Dammam, Saudi Arabia
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Surface
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North America
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Brighton (Colorado), United States
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Surface
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Calgary (Alberta), Canada
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Surface
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Corpus Christi (Texas), United States
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|
Surface
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Davis (California), United States
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|
Subsea
|
Houston (Texas), United States
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|
Subsea, Onshore/Offshore, Surface
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Edmonton (Alberta), Canada
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|
Surface
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Erie (Pennsylvania), United States
|
|
Surface
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Odessa (Texas), United States
|
|
Surface
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Oklahoma City (Oklahoma), United States
|
|
Surface
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San Antonio (Texas), United States
|
|
Surface
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Stephenville (Texas), United States
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|
Surface
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St. John’s (Newfoundland), Canada
|
|
Subsea
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Theodore (Alabama), United States
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|
Subsea
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South America
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|
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Bogota, Colombia
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Onshore/Offshore
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Macaé, Brazil
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|
Subsea
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Neuquén, Argentina
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|
Surface
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Rio de Janeiro, Brazil
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Subsea, Surface
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São João da Barra, Brazil
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Subsea
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Vitória, Brazil
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Subsea
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Yopal, Columbia
|
|
Surface
|
Vessel Name
|
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Vessel Type
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Special Equipment
|
Deep Blue
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PLSV
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Reeled pipelay/flexible pipelay/umbilical systems
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Deep Energy
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PLSV
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Reeled pipelay/flexible pipelay/umbilical systems
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Apache II
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|
PLSV
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|
Reeled pipelay/umbilical systems
|
Global 1200
|
|
PLSV/HCV
|
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Conventional pipelay/Heavy handling operations
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Deep Orient
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HCV
|
|
Construction/installation systems
|
North Sea Atlantic (a)
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HCV
|
|
Construction/installation systems
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Skandi Africa (a)
|
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HCV
|
|
Construction/installation systems
|
Deep Arctic
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|
DSV/HCV
|
|
Diver support systems
|
Deep Discoverer
|
|
DSV/HCV
|
|
Diver support systems
|
Deep Explorer
|
|
DSV/HCV
|
|
Diver support systems
|
Skandi Vitória
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
Skandi Niterói
|
|
PLSV
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|
Flexible pipelay/umbilical systems
|
Coral do Atlantico
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
Deep Star (previously Estrela do Mar)
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
Skandi Açu
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
Skandi Búzios
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
Skandi Olinda
|
|
PLSV
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|
Flexible pipelay/umbilical systems
|
Skandi Recife
|
|
PLSV
|
|
Flexible pipelay/umbilical systems
|
(a)
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Vessels under long term charter.
|
Period
|
Total Number
of Shares
Purchased
|
|
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 (a)
|
|||||
October 1, 2019 – October 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
14,286,427
|
|
November 1, 2019 – November 30, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
14,286,427
|
|
December 1, 2019 – December 31, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
14,286,427
|
|
Total
|
—
|
|
|
|
|
—
|
|
|
14,286,427
|
|
(a)
|
In December 2018, our Board of Directors authorized an extension of our share repurchase program for $300 million for the purchase of ordinary shares.
|
|
December 31
|
||||||||||
|
2017
|
|
2018
|
|
2019
|
||||||
TechnipFMC plc
|
$
|
87.76
|
|
|
$
|
55.89
|
|
|
$
|
62.63
|
|
S&P 500 Index
|
119.82
|
|
|
114.56
|
|
|
150.62
|
|
|||
PHLX Oil Services Index
|
82.00
|
|
|
44.93
|
|
|
44.68
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(In millions, except per share data)
|
2019(a)
|
|
2018 (a)
|
|
2017(b)
|
|
2016
|
|
2015
|
||||||||||
Statement of income data
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
$
|
13,409.1
|
|
|
$
|
12,552.9
|
|
|
$
|
15,056.9
|
|
|
$
|
9,199.6
|
|
|
$
|
11,471.9
|
|
Total costs and expenses
|
$
|
14,935.8
|
|
|
$
|
13,470.5
|
|
|
$
|
14,091.7
|
|
|
$
|
8,743.6
|
|
|
$
|
11,198.3
|
|
Net income (loss)
|
$
|
(2,412.1
|
)
|
|
$
|
(1,910.8
|
)
|
|
$
|
134.2
|
|
|
$
|
371.1
|
|
|
$
|
14.0
|
|
Net income (loss) attributable to TechnipFMC plc
|
$
|
(2,415.2
|
)
|
|
$
|
(1,921.6
|
)
|
|
$
|
113.3
|
|
|
$
|
393.3
|
|
|
$
|
14.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per share
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
|
$
|
3.29
|
|
|
$
|
0.13
|
|
Diluted earnings (loss) per share
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
|
$
|
3.16
|
|
|
$
|
0.13
|
|
|
December 31,
|
||||||||||||||||||
(In millions)
|
2019(a)
|
|
2018(a)
|
|
2017(b)
|
|
2016
|
|
2015
|
||||||||||
Balance sheet data
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
23,518.8
|
|
|
$
|
24,784.5
|
|
|
$
|
28,263.7
|
|
|
$
|
18,679.3
|
|
|
$
|
14,953.6
|
|
Long-term debt, less current portion
|
$
|
3,980.0
|
|
|
$
|
4,124.3
|
|
|
$
|
3,777.9
|
|
|
$
|
1,869.3
|
|
|
$
|
2,005.0
|
|
Total TechnipFMC plc stockholders’ equity
|
$
|
7,659.3
|
|
|
$
|
10,357.6
|
|
|
$
|
13,345.9
|
|
|
$
|
5,013.8
|
|
|
$
|
4,947.2
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017 (b)
|
|
2016
|
|
2015
|
||||||||||
Other financial information
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
$
|
454.4
|
|
|
$
|
368.1
|
|
|
$
|
255.7
|
|
|
$
|
312.9
|
|
|
$
|
325.5
|
|
Cash flows provided (required) by operating activities
|
$
|
848.5
|
|
|
$
|
(185.4
|
)
|
|
$
|
210.7
|
|
|
$
|
493.8
|
|
|
$
|
700.3
|
|
Net cash (c)
|
$
|
714.8
|
|
|
$
|
1,348.3
|
|
|
$
|
2,882.4
|
|
|
$
|
3,716.4
|
|
|
$
|
370.4
|
|
Order backlog (d)
|
$
|
24,251.1
|
|
|
$
|
14,560.0
|
|
|
$
|
12,982.8
|
|
|
$
|
15,002.0
|
|
|
$
|
18,475.5
|
|
(a)
|
The results of our operations for the year ended December 31, 2019 includes goodwill and long-lived asset impairment charges of $1,988.7 million and $495.4 million. The results of our operations for the year ended December 31, 2018 includes goodwill and vessels impairment charges of $1,383.0 million and $372.9 million, respectively, and a legal provision of $280.0 million. Refer to Note 20 and Note 21 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information on the impairments and legal provision, respectively.
|
(b)
|
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 2015 represent Technip only.
|
(c)
|
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.
|
(d)
|
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)
|
2019
|
|
2018
|
|
2017
|
|
2019 vs. 2018
|
|
2018 vs. 2017
|
||||||||||||||||
Revenue
|
$
|
13,409.1
|
|
|
$
|
12,552.9
|
|
|
$
|
15,056.9
|
|
|
$
|
856.2
|
|
|
6.8
|
%
|
|
$
|
(2,504.0
|
)
|
|
(16.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales
|
10,950.7
|
|
|
10,273.0
|
|
|
12,524.6
|
|
|
677.7
|
|
|
6.6
|
%
|
|
(2,251.6
|
)
|
|
(18.0
|
)%
|
|||||
Selling, general and administrative expense
|
1,228.1
|
|
|
1,140.6
|
|
|
1,060.9
|
|
|
87.5
|
|
|
7.7
|
%
|
|
79.7
|
|
|
7.5
|
%
|
|||||
Research and development expense
|
162.9
|
|
|
189.2
|
|
|
212.9
|
|
|
(26.3
|
)
|
|
(13.9
|
)%
|
|
(23.7
|
)
|
|
(11.1
|
)%
|
|||||
Impairment, restructuring and other expense
|
2,490.8
|
|
|
1,831.2
|
|
|
191.5
|
|
|
659.6
|
|
|
36.0
|
%
|
|
1,639.7
|
|
|
856.2
|
%
|
|||||
Separation costs
|
72.1
|
|
|
—
|
|
|
—
|
|
|
72.1
|
|
|
n/a
|
|
|
—
|
|
|
—
|
%
|
|||||
Merger transaction and integration costs (a)
|
31.2
|
|
|
36.5
|
|
|
101.8
|
|
|
(5.3
|
)
|
|
(14.5
|
)%
|
|
(65.3
|
)
|
|
(64.1
|
)%
|
|||||
Total costs and expenses
|
14,935.8
|
|
|
13,470.5
|
|
|
14,091.7
|
|
|
1,465.3
|
|
|
10.9
|
%
|
|
(621.2
|
)
|
|
(4.4
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense), net
|
(220.7
|
)
|
|
(323.9
|
)
|
|
(25.9
|
)
|
|
103.2
|
|
|
31.9
|
%
|
|
(298.0
|
)
|
|
(1,150.6
|
)%
|
|||||
Income from equity affiliates
|
62.9
|
|
|
114.3
|
|
|
55.6
|
|
|
(51.4
|
)
|
|
(45.0
|
)%
|
|
58.7
|
|
|
105.6
|
%
|
|||||
Net interest expense
|
(451.3
|
)
|
|
(360.9
|
)
|
|
(315.2
|
)
|
|
(90.4
|
)
|
|
(25.0
|
)%
|
|
(45.7
|
)
|
|
(14.5
|
)%
|
|||||
Income (loss) before income taxes
|
(2,135.8
|
)
|
|
(1,488.1
|
)
|
|
679.7
|
|
|
(647.7
|
)
|
|
(43.5
|
)%
|
|
(2,167.8
|
)
|
|
(318.9
|
)%
|
|||||
Provision for income taxes
|
276.3
|
|
|
422.7
|
|
|
545.5
|
|
|
(146.4
|
)
|
|
(34.6
|
)%
|
|
(122.8
|
)
|
|
(22.5
|
)%
|
|||||
Net income (loss)
|
(2,412.1
|
)
|
|
(1,910.8
|
)
|
|
134.2
|
|
|
(501.3
|
)
|
|
(26.2
|
)%
|
|
(2,045.0
|
)
|
|
(1,523.8
|
)%
|
|||||
Net income attributable to noncontrolling interests
|
(3.1
|
)
|
|
(10.8
|
)
|
|
(20.9
|
)
|
|
7.7
|
|
|
71.3
|
%
|
|
10.1
|
|
|
48.3
|
%
|
|||||
Net income (loss) attributable to TechnipFMC plc
|
$
|
(2,415.2
|
)
|
|
$
|
(1,921.6
|
)
|
|
$
|
113.3
|
|
|
$
|
(493.6
|
)
|
|
(25.7
|
)%
|
|
$
|
(2,034.9
|
)
|
|
(1,796.0
|
)%
|
|
Year Ended December 31,
|
|
Favorable/(Unfavorable)
|
|||||||||||||||||||
(In millions, except %)
|
2019
|
|
2018
|
|
2017(a)
|
|
2019 vs.
2018 |
|
2018 vs.
2017
|
|||||||||||||
Revenue
|
$
|
5,523.0
|
|
|
$
|
4,840.0
|
|
|
$
|
5,877.4
|
|
|
$
|
683.0
|
|
|
14%
|
|
$(1,037.4)
|
|
(18)%
|
|
Operating profit (loss)
|
$
|
(1,447.7
|
)
|
|
$(1,529.5)
|
|
$
|
460.5
|
|
|
$
|
81.8
|
|
|
5%
|
|
$(1,990.0)
|
|
(432)%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit (loss) as a percent of revenue
|
(26.2
|
)%
|
|
(31.6
|
)%
|
|
7.8
|
%
|
|
|
|
5.4
|
pts.
|
|
|
|
n/a
|
(a)
|
Due to the Merger, there were 11.5 months included in the year ended 2017 for legacy FMC Technologies. 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 %)
|
2019
|
|
2018
|
|
2017
|
|
2019 vs.
2018 |
|
2018 vs.
2017
|
||||||||||||||||
Revenue
|
$
|
6,268.8
|
|
|
$
|
6,120.7
|
|
|
$
|
7,904.5
|
|
|
$
|
148.1
|
|
|
2%
|
|
$(1,783.8)
|
|
(23)%
|
||||
Operating profit
|
$
|
959.6
|
|
|
$
|
824.0
|
|
|
$
|
810.9
|
|
|
$
|
135.6
|
|
|
16%
|
|
$
|
13.1
|
|
|
2%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating profit as a percent of revenue
|
15.3
|
%
|
|
13.5
|
%
|
|
10.3
|
%
|
|
|
|
1.8
|
pts.
|
|
|
|
3.2
|
pts.
|
|
Year Ended December 31,
|
Favorable/(Unfavorable)
|
|||||||||||||||||||||||
(In millions, except %)
|
2019
|
|
2018
|
|
2017(a)
|
|
2019 vs.
2018 |
|
2018 vs.
2017
|
||||||||||||||||
Revenue
|
$
|
1,617.3
|
|
|
$
|
1,592.2
|
|
|
$
|
1,274.6
|
|
|
$
|
25.1
|
|
|
2%
|
|
$
|
317.6
|
|
|
25%
|
||
Operating profit (loss)
|
$
|
(656.1
|
)
|
|
$
|
172.8
|
|
|
$
|
82.7
|
|
|
$
|
(828.9
|
)
|
|
(480)%
|
|
$
|
90.1
|
|
|
109%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating profit (loss) as a percent of revenue
|
(40.6
|
)%
|
|
10.9
|
%
|
|
6.5
|
%
|
|
|
|
(51.5
|
) pts.
|
|
|
|
4.4
|
pts.
|
(a)
|
Due to the Merger, there were 11.5 months included in the year ended 2017 for legacy FMC Technologies. Refer to Note 2 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K.
|
|
Year Ended December 31,
|
Favorable/(Unfavorable)
|
|||||||||||||||||||||
(In millions, except %)
|
2019
|
|
2018
|
|
2017
|
|
2019 vs.
2018 |
|
2018 vs.
2017
|
||||||||||||||
Corporate expense
|
$
|
(540.3
|
)
|
|
$
|
(594.5
|
)
|
|
$
|
(359.2
|
)
|
|
$
|
54.2
|
|
|
9%
|
|
$
|
(235.3
|
)
|
|
(66)%
|
|
Year Ended
|
||||||
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Corporate expense, reported
|
$
|
540.3
|
|
|
$
|
594.5
|
|
Less charges and (credits)
|
184.5
|
|
|
335.2
|
|
||
Corporate expense, adjusted
|
355.8
|
|
|
259.3
|
|
||
Less foreign exchange losses
|
146.9
|
|
|
116.5
|
|
||
Corporate expense, adjusted and before foreign exchange losses
|
$
|
208.9
|
|
|
$
|
142.8
|
|
|
Year Ended
|
||||||||||||||||||||||||||
|
December 31, 2019
|
||||||||||||||||||||||||||
|
Net income (loss) attributable to TechnipFMC plc
|
|
Net income (loss) attributable to noncontrolling interests
|
|
Provision for income taxes
|
|
Net interest expense
|
|
Income (loss) before net interest expense and income taxes (Operating profit)
|
|
Depreciation and amortization
|
|
Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
|
||||||||||||||
TechnipFMC plc, as reported
|
$
|
(2,415.2
|
)
|
|
$
|
3.1
|
|
|
$
|
276.3
|
|
|
$
|
451.3
|
|
|
$
|
(1,684.5
|
)
|
|
$
|
509.6
|
|
|
$
|
(1,174.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment and other charges
|
2,364.2
|
|
|
—
|
|
|
119.9
|
|
|
—
|
|
|
2,484.1
|
|
|
—
|
|
|
2,484.1
|
|
|||||||
Restructuring and other charges
|
27.7
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
37.0
|
|
|
—
|
|
|
37.0
|
|
|||||||
Business combination transaction and integration costs
|
23.1
|
|
|
—
|
|
|
8.1
|
|
|
—
|
|
|
31.2
|
|
|
—
|
|
|
31.2
|
|
|||||||
Separation costs
|
54.2
|
|
|
—
|
|
|
17.9
|
|
|
—
|
|
|
72.1
|
|
|
—
|
|
|
72.1
|
|
|||||||
Reorganization
|
17.2
|
|
|
—
|
|
|
8.1
|
|
|
—
|
|
|
25.3
|
|
|
—
|
|
|
25.3
|
|
|||||||
Legal provision, net
|
46.3
|
|
|
—
|
|
|
8.3
|
|
|
—
|
|
|
54.6
|
|
|
—
|
|
|
54.6
|
|
|||||||
Purchase price accounting adjustment
|
26.0
|
|
|
—
|
|
|
8.0
|
|
|
—
|
|
|
34.0
|
|
|
(34.0
|
)
|
|
—
|
|
|||||||
Valuation allowance
|
187.0
|
|
|
—
|
|
|
(187.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Adjusted financial measures
|
$
|
330.5
|
|
|
$
|
3.1
|
|
|
$
|
268.9
|
|
|
$
|
451.3
|
|
|
$
|
1,053.8
|
|
|
$
|
475.6
|
|
|
$
|
1,529.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted earnings (loss) per share attributable to TechnipFMC plc, as reported
|
$
|
(5.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted diluted earnings per share attributable to TechnipFMC plc
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||||||||||
|
Net income (loss) attributable to TechnipFMC plc
|
|
Net income (loss) attributable to noncontrolling interests
|
|
Provision for income taxes
|
|
Net interest expense
|
|
Income (loss) before net interest expense and income taxes (Operating profit)
|
|
Depreciation and amortization
|
|
Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)
|
||||||||||||||
TechnipFMC plc, as reported
|
$
|
(1,921.6
|
)
|
|
$
|
(10.8
|
)
|
|
$
|
422.7
|
|
|
$
|
(360.9
|
)
|
|
$
|
(1,127.2
|
)
|
|
$
|
550.4
|
|
|
$
|
(576.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment and other charges
|
1,698.2
|
|
|
—
|
|
|
94.4
|
|
|
—
|
|
|
1,792.6
|
|
|
—
|
|
|
1,792.6
|
|
|||||||
Restructuring and other severance charges
|
23.9
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
38.6
|
|
|
—
|
|
|
38.6
|
|
|||||||
Business combination transaction and integration costs
|
22.6
|
|
|
—
|
|
|
13.9
|
|
|
—
|
|
|
36.5
|
|
|
—
|
|
|
36.5
|
|
|||||||
Legal provision
|
280.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
280.0
|
|
|
—
|
|
|
280.0
|
|
|||||||
Gain on divestitures
|
(19.5
|
)
|
|
—
|
|
|
(12.1
|
)
|
|
—
|
|
|
(31.6
|
)
|
|
—
|
|
|
(31.6
|
)
|
|||||||
Purchase price accounting adjustment
|
67.9
|
|
|
—
|
|
|
20.9
|
|
|
—
|
|
|
88.8
|
|
|
(91.3
|
)
|
|
(2.5
|
)
|
|||||||
Tax reform
|
11.8
|
|
|
—
|
|
|
(11.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Valuation allowance
|
213.8
|
|
|
—
|
|
|
(213.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Adjusted financial measures
|
$
|
377.1
|
|
|
$
|
10.8
|
|
|
$
|
328.9
|
|
|
$
|
360.9
|
|
|
$
|
1,077.7
|
|
|
$
|
459.1
|
|
|
$
|
1,536.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted earnings per share attributable to TechnipFMC plc, as reported
|
$
|
(4.20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted diluted earnings per share attributable to TechnipFMC plc
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
||||||||||||||||||
|
December 31, 2019
|
||||||||||||||||||
|
Subsea
|
|
Onshore/
Offshore |
|
Surface Technologies
|
|
Corporate and Other
|
|
Total
|
||||||||||
Revenue
|
$
|
5,523.0
|
|
|
$
|
6,268.8
|
|
|
$
|
1,617.3
|
|
|
$
|
—
|
|
|
$
|
13,409.1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (loss), as reported (pre-tax)
|
$
|
(1,447.7
|
)
|
|
$
|
959.6
|
|
|
$
|
(656.1
|
)
|
|
$
|
(540.3
|
)
|
|
$
|
(1,684.5
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment and other charges*
|
1,798.6
|
|
|
—
|
|
|
685.5
|
|
|
—
|
|
|
2,484.1
|
|
|||||
Restructuring and other charges*
|
(46.4
|
)
|
|
17.0
|
|
|
39.8
|
|
|
26.6
|
|
|
37.0
|
|
|||||
Business combination transaction and integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
31.2
|
|
|
31.2
|
|
|||||
Separation costs
|
—
|
|
|
—
|
|
|
—
|
|
|
72.1
|
|
|
72.1
|
|
|||||
Reorganization
|
—
|
|
|
25.3
|
|
|
—
|
|
|
—
|
|
|
25.3
|
|
|||||
Legal provision, net
|
—
|
|
|
—
|
|
|
—
|
|
|
54.6
|
|
|
54.6
|
|
|||||
Purchase price accounting adjustments
|
34.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.0
|
|
|||||
Subtotal
|
1,786.2
|
|
|
42.3
|
|
|
725.3
|
|
|
184.5
|
|
|
2,738.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating profit (loss)
|
338.5
|
|
|
1,001.9
|
|
|
69.2
|
|
|
(355.8
|
)
|
|
1,053.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Depreciation and amortization
|
311.6
|
|
|
38.7
|
|
|
107.9
|
|
|
17.4
|
|
|
475.6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA
|
$
|
650.1
|
|
|
$
|
1,040.6
|
|
|
$
|
177.1
|
|
|
$
|
(338.4
|
)
|
|
$
|
1,529.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit margin
|
(26.2
|
)%
|
|
15.3
|
%
|
|
(40.6
|
)%
|
|
|
|
(12.6
|
)%
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating profit margin
|
6.1
|
%
|
|
16.0
|
%
|
|
4.3
|
%
|
|
|
|
7.9
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margin
|
11.8
|
%
|
|
16.6
|
%
|
|
11.0
|
%
|
|
|
|
11.4
|
%
|
|
Year Ended
|
||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||
|
Subsea
|
|
Onshore/
Offshore |
|
Surface Technologies
|
|
Corporate and Other
|
|
Total
|
||||||||||
Revenue
|
$
|
4,840.0
|
|
|
$
|
6,120.7
|
|
|
$
|
1,592.2
|
|
|
$
|
—
|
|
|
$
|
12,552.9
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit (loss), as reported (pre-tax)
|
$
|
(1,529.5
|
)
|
|
$
|
824.0
|
|
|
$
|
172.8
|
|
|
$
|
(594.5
|
)
|
|
$
|
(1,127.2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charges and (credits):
|
|
|
|
|
|
|
|
|
|
||||||||||
Impairment and other charges
|
1,784.2
|
|
|
—
|
|
|
4.5
|
|
|
3.9
|
|
|
1,792.6
|
|
|||||
Restructuring and other severance charges
|
17.7
|
|
|
(3.4
|
)
|
|
9.3
|
|
|
15.0
|
|
|
38.6
|
|
|||||
Business combination transaction and integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
36.5
|
|
|
36.5
|
|
|||||
Legal provision
|
—
|
|
|
—
|
|
|
—
|
|
|
280.0
|
|
|
280.0
|
|
|||||
Gain on divestitures
|
(3.3
|
)
|
|
(28.3
|
)
|
|
—
|
|
|
—
|
|
|
(31.6
|
)
|
|||||
Purchase price accounting adjustments - non-amortization related
|
(9.4
|
)
|
|
—
|
|
|
7.1
|
|
|
(0.2
|
)
|
|
(2.5
|
)
|
|||||
Purchase price accounting adjustments - amortization related
|
91.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91.3
|
|
|||||
Subtotal
|
1,880.5
|
|
|
(31.7
|
)
|
|
20.9
|
|
|
335.2
|
|
|
2,204.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating profit (loss)
|
351.0
|
|
|
792.3
|
|
|
193.7
|
|
|
(259.3
|
)
|
|
1,077.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Depreciation and amortization
|
349.2
|
|
|
38.1
|
|
|
66.6
|
|
|
5.2
|
|
|
459.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA
|
$
|
700.2
|
|
|
$
|
830.4
|
|
|
$
|
260.3
|
|
|
$
|
(254.1
|
)
|
|
$
|
1,536.8
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit margin
|
-31.6
|
%
|
|
13.5
|
%
|
|
10.9
|
%
|
|
|
|
-9.0
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating profit margin
|
7.3
|
%
|
|
12.9
|
%
|
|
12.2
|
%
|
|
|
|
8.6
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA margin
|
14.5
|
%
|
|
13.6
|
%
|
|
16.3
|
%
|
|
|
|
12.2
|
%
|
|
Inbound Orders
Year Ended December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Subsea
|
$
|
7,992.6
|
|
|
$
|
5,178.5
|
|
Onshore/Offshore
|
13,080.5
|
|
|
7,425.9
|
|
||
Surface Technologies
|
1,619.9
|
|
|
1,686.6
|
|
||
Total inbound orders
|
$
|
22,693.0
|
|
|
$
|
14,291.0
|
|
|
Order Backlog
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Subsea
|
$
|
8,479.8
|
|
|
$
|
5,999.6
|
|
Onshore/Offshore
|
15,298.1
|
|
|
8,090.5
|
|
||
Surface Technologies
|
473.2
|
|
|
469.9
|
|
||
Total order backlog
|
$
|
24,251.1
|
|
|
$
|
14,560.0
|
|
|
Non-consolidated backlog
|
||
(In millions)
|
December 31,
2019 |
||
Subsea
|
$
|
799.2
|
|
Onshore/Offshore
|
2,976.0
|
|
|
Total order backlog
|
$
|
3,775.2
|
|
(In millions)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
$
|
5,190.2
|
|
|
$
|
5,540.0
|
|
Short-term debt and current portion of long-term debt
|
(495.4
|
)
|
|
(67.4
|
)
|
||
Long-term debt, less current portion
|
(3,980.0
|
)
|
|
(4,124.3
|
)
|
||
Net cash
|
$
|
714.8
|
|
|
$
|
1,348.3
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash provided (required) by operating activities
|
$
|
848.5
|
|
|
$
|
(185.4
|
)
|
|
$
|
210.7
|
|
Cash provided (required) by investing activities
|
(419.8
|
)
|
|
(460.2
|
)
|
|
1,250.0
|
|
|||
Cash required by financing activities
|
(784.4
|
)
|
|
(444.8
|
)
|
|
(1,054.8
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
5.9
|
|
|
(107.0
|
)
|
|
62.2
|
|
|||
Increase (decrease) in cash and cash equivalents
|
$
|
(349.8
|
)
|
|
$
|
(1,197.4
|
)
|
|
$
|
468.1
|
|
|
|
|
|
|
|
||||||
Working capital
|
$
|
(82.2
|
)
|
|
$
|
(759.0
|
)
|
|
$
|
(725.2
|
)
|
(In millions)
|
December 31,
2019 |
|
December 31,
2018 |
||||
Commercial paper
|
1,967.0
|
|
|
1,916.1
|
|
||
Synthetic bonds due 2021
|
492.9
|
|
|
490.9
|
|
||
3.45% Senior Notes due 2022
|
500.0
|
|
|
500.0
|
|
||
5.00% Notes due 2020
|
224.6
|
|
|
229.0
|
|
||
3.40% Notes due 2022
|
168.5
|
|
|
171.8
|
|
||
3.15% Notes due 2023
|
146.0
|
|
|
148.9
|
|
||
3.15% Notes due 2023
|
140.4
|
|
|
143.1
|
|
||
4.00% Notes due 2027
|
84.2
|
|
|
85.9
|
|
||
4.00% Notes due 2032
|
112.3
|
|
|
114.5
|
|
||
3.75% Notes due 2033
|
112.3
|
|
|
114.5
|
|
||
Bank borrowings
|
513.3
|
|
|
265.2
|
|
||
Other
|
23.0
|
|
|
23.2
|
|
||
Unamortized debt issuance costs and discounts
|
(9.1
|
)
|
|
(11.4
|
)
|
||
Total borrowings
|
$
|
4,475.4
|
|
|
$
|
4,191.7
|
|
(In millions)
Description
|
Amount
|
|
Debt
Outstanding
|
|
Commercial
Paper
Outstanding
(a)
|
|
Letters
of Credit
|
|
Unused
Capacity
|
|
Maturity
|
||||||||||
Five-year revolving credit facility
|
$
|
2,500.0
|
|
|
$
|
—
|
|
|
$
|
1,967.0
|
|
|
$
|
—
|
|
|
$
|
533.0
|
|
|
January 2023
|
(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)
|
Total
payments
|
|
Less than
1 year
|
|
1-3
years
|
|
3-5
years
|
|
After 5
years
|
||||||||||
Debt (a)
|
$
|
4,475.4
|
|
|
$
|
495.4
|
|
|
$
|
3,392.4
|
|
|
$
|
285.6
|
|
|
$
|
302.0
|
|
Interest on debt (a)
|
232.6
|
|
|
54.9
|
|
|
68.6
|
|
|
31.3
|
|
|
77.8
|
|
|||||
Operating leases (b)
|
956.8
|
|
|
291.2
|
|
|
279.0
|
|
|
155.1
|
|
|
231.5
|
|
|||||
Purchase obligations (c)
|
6,025.9
|
|
|
3,872.0
|
|
|
1,995.7
|
|
|
125.1
|
|
|
33.1
|
|
|||||
Pension and other post-retirement benefits (d)
|
18.8
|
|
|
18.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unrecognized tax benefits (e)
|
62.7
|
|
|
2.1
|
|
|
13.8
|
|
|
46.8
|
|
|
—
|
|
|||||
Other contractual obligations (f)
|
268.8
|
|
|
129.1
|
|
|
107.8
|
|
|
31.9
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
12,041.0
|
|
|
$
|
4,863.5
|
|
|
$
|
5,857.3
|
|
|
$
|
675.8
|
|
|
$
|
644.4
|
|
(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)
|
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. In addition, in 2014 we entered into construction and operating lease agreements to finance the construction of manufacturing and office facilities located in the USA. 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 $6.9 million to our international pension plans during 2020. Required contributions for future years depend on factors that cannot be determined at this time. Additionally, we expect to pay directly to beneficiaries approximately $13.3 million for international unfunded pension plan and $5.5 million for U.S. Non-Qualified unfunded pension plan during 2019.
|
(e)
|
It is reasonably possible that $2.1 million of liabilities for unrecognized tax benefits will be settled during 2020, and this amount is reflected in income taxes payable in our consolidated balance sheet as of December 31, 2019. 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 represents our share of the 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, 2019 we revalued the liability to reflect current expectations about the obligation. Refer to Note 25 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)
|
Total
amount
|
|
Less than
1 year
|
|
1-3
years
|
|
3-5
years
|
|
After 5
years
|
||||||||||
Letters of credit and bank guarantees (a)
|
$
|
5,857.5
|
|
|
$
|
2,240.8
|
|
|
$
|
2,150.3
|
|
|
$
|
894.9
|
|
|
$
|
571.5
|
|
Surety bonds (a)
|
4.0
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Total other off-balance sheet arrangements
|
$
|
5,861.5
|
|
|
$
|
2,244.7
|
|
|
$
|
2,150.3
|
|
|
$
|
894.9
|
|
|
$
|
571.6
|
|
(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 2019 Pension Expense Before Income Taxes
|
|
Increase (Decrease) in Projected Benefit Obligation at December 31, 2019
|
||||
25 basis point decrease in discount rate
|
$
|
3.0
|
|
|
$
|
58.9
|
|
25 basis point increase in discount rate
|
$
|
(1.4
|
)
|
|
$
|
(55.8
|
)
|
25 basis point decrease in expected long-term rate of return on plan assets
|
$
|
(2.9
|
)
|
|
N/A
|
|
|
25 basis point increase in expected long-term rate of return on plan assets
|
$
|
2.9
|
|
|
N/A
|
|
|
2019
|
Year of cash flows before terminal value
|
4
|
Discount rates
|
12.5% to 15.0%
|
EBITDA multiples
|
6.0 - 8.5x
|
|
Year Ended
|
||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
|
|
|
|
|
||||||
Service revenue
|
$
|
9,789.7
|
|
|
$
|
9,057.6
|
|
|
$
|
11,445.9
|
|
Product revenue
|
3,352.9
|
|
|
3,272.6
|
|
|
3,416.4
|
|
|||
Lease revenue
|
266.5
|
|
|
222.7
|
|
|
194.6
|
|
|||
Total revenue
|
13,409.1
|
|
|
12,552.9
|
|
|
15,056.9
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Cost of service revenue
|
7,767.2
|
|
|
7,452.7
|
|
|
9,433.1
|
|
|||
Cost of product revenue
|
3,015.6
|
|
|
2,676.9
|
|
|
2,954.3
|
|
|||
Cost of lease revenue
|
167.9
|
|
|
143.4
|
|
|
137.2
|
|
|||
Selling, general and administrative expense
|
1,228.1
|
|
|
1,140.6
|
|
|
1,060.9
|
|
|||
Research and development expense
|
162.9
|
|
|
189.2
|
|
|
212.9
|
|
|||
Impairment, restructuring and other expense (Note 20)
|
2,490.8
|
|
|
1,831.2
|
|
|
191.5
|
|
|||
Separation costs (Note 3)
|
72.1
|
|
|
—
|
|
|
—
|
|
|||
Merger transaction and integration costs (Note 2)
|
31.2
|
|
|
36.5
|
|
|
101.8
|
|
|||
Total costs and expenses
|
14,935.8
|
|
|
13,470.5
|
|
|
14,091.7
|
|
|||
|
|
|
|
|
|
||||||
Other income (expense), net
|
(220.7
|
)
|
|
(323.9
|
)
|
|
(25.9
|
)
|
|||
Income from equity affiliates (Note 12)
|
62.9
|
|
|
114.3
|
|
|
55.6
|
|
|||
Income (loss) before interest income, interest expense and income taxes
|
(1,684.5
|
)
|
|
(1,127.2
|
)
|
|
994.9
|
|
|||
Interest income
|
116.5
|
|
|
121.4
|
|
|
140.8
|
|
|||
Interest expense
|
(567.8
|
)
|
|
(482.3
|
)
|
|
(456.0
|
)
|
|||
Income (loss) before income taxes
|
(2,135.8
|
)
|
|
(1,488.1
|
)
|
|
679.7
|
|
|||
Provision for income taxes (Note 22)
|
276.3
|
|
|
422.7
|
|
|
545.5
|
|
|||
Net income (loss)
|
(2,412.1
|
)
|
|
(1,910.8
|
)
|
|
134.2
|
|
|||
Net profit attributable to noncontrolling interests
|
(3.1
|
)
|
|
(10.8
|
)
|
|
(20.9
|
)
|
|||
Net income (loss) attributable to TechnipFMC plc
|
$
|
(2,415.2
|
)
|
|
$
|
(1,921.6
|
)
|
|
$
|
113.3
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share attributable to TechnipFMC plc (Note 8)
|
|
|
|
|
|
||||||
Basic
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
Diluted
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
Weighted average shares outstanding (Note 8)
|
|
|
|
|
|
||||||
Basic
|
448.0
|
|
|
458.0
|
|
|
466.7
|
|
|||
Diluted
|
448.0
|
|
|
458.0
|
|
|
468.3
|
|
|
Year Ended
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
$
|
(2,412.1
|
)
|
|
$
|
(1,910.8
|
)
|
|
$
|
134.2
|
|
Foreign currency translation adjustments
|
|
|
|
|
|
||||||
Net gain (losses) arising during the period
|
15.6
|
|
|
(183.3
|
)
|
|
(87.2
|
)
|
|||
Reclassification adjustment for net gains included in net income
|
(12.0
|
)
|
|
(41.1
|
)
|
|
—
|
|
|||
Foreign currency translation adjustments(a)
|
3.6
|
|
|
(224.4
|
)
|
|
(87.2
|
)
|
|||
|
|
|
|
|
|
||||||
Net gains (losses) on hedging instruments
|
|
|
|
|
|
||||||
Net gains (losses) arising during the period
|
8.9
|
|
|
(58.7
|
)
|
|
53.8
|
|
|||
Reclassification adjustment for net losses (gains) included in net income
|
18.2
|
|
|
(2.0
|
)
|
|
101.2
|
|
|||
Net gains (losses) on hedging instruments (b)
|
27.1
|
|
|
(60.7
|
)
|
|
155.0
|
|
|||
|
|
|
|
|
|
||||||
Pension and other post-retirement benefits
|
|
|
|
|
|
||||||
Net gains (losses) arising during the period
|
(81.5
|
)
|
|
(72.4
|
)
|
|
43.2
|
|
|||
Prior service cost arising during the period
|
(0.7
|
)
|
|
(2.1
|
)
|
|
—
|
|
|||
Reclassification adjustment for settlement losses (gains) included in net income
|
0.2
|
|
|
(2.5
|
)
|
|
(15.2
|
)
|
|||
Reclassification adjustment for amortization of prior service cost included in net income
|
2.0
|
|
|
1.2
|
|
|
0.7
|
|
|||
Reclassification adjustment for amortization of net actuarial loss included in net income
|
0.8
|
|
|
0.3
|
|
|
1.8
|
|
|||
Net pension and other post-retirement benefits (c)
|
(79.2
|
)
|
|
(75.5
|
)
|
|
30.5
|
|
|||
Other comprehensive income (loss), net of tax
|
(48.5
|
)
|
|
(360.6
|
)
|
|
98.3
|
|
|||
Comprehensive income (loss)
|
(2,460.6
|
)
|
|
(2,271.4
|
)
|
|
232.5
|
|
|||
Comprehensive income attributable to noncontrolling interest
|
(2.4
|
)
|
|
(6.2
|
)
|
|
(21.3
|
)
|
|||
Comprehensive income (loss) attributable to TechnipFMC plc
|
$
|
(2,463.0
|
)
|
|
$
|
(2,277.6
|
)
|
|
$
|
211.2
|
|
(a)
|
Net of income tax (expense) benefit of $7.9, $3.6 and $(11.5) for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(b)
|
Net of income tax (expense) benefit of $(6.9), $16.6 and $(52.5) for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(c)
|
Net of income tax (expense) benefit of $20.3, $15.5 and $(11.7) for the years ended December 31, 2019, 2018 and 2017, respectively.
|
TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|||||||
(In millions, except par value data)
|
December 31,
|
||||||
Assets
|
2019
|
|
2018
|
||||
Cash and cash equivalents
|
$
|
5,190.2
|
|
|
$
|
5,540.0
|
|
Trade receivables, net of allowances of $95.4 in 2019 and $119.6 in 2018
|
2,287.1
|
|
|
2,469.7
|
|
||
Contract assets
|
1,520.0
|
|
|
1,295.0
|
|
||
Inventories, net (Note 9)
|
1,416.0
|
|
|
1,251.2
|
|
||
Derivative financial instruments (Note 24)
|
101.9
|
|
|
95.7
|
|
||
Income taxes receivable
|
264.6
|
|
|
284.3
|
|
||
Advances paid to suppliers
|
242.9
|
|
|
189.7
|
|
||
Other current assets (Note 10)
|
863.7
|
|
|
655.6
|
|
||
Total current assets
|
11,886.4
|
|
|
11,781.2
|
|
||
Investments in equity affiliates (Note 12)
|
300.4
|
|
|
394.5
|
|
||
Property, plant and equipment, net (Note 14)
|
3,162.0
|
|
|
3,259.8
|
|
||
Operating lease right-of-use assets (Note 5)
|
892.6
|
|
|
—
|
|
||
Goodwill (Note 15)
|
5,598.3
|
|
|
7,607.6
|
|
||
Intangible assets, net (Note 15)
|
1,086.6
|
|
|
1,176.7
|
|
||
Deferred income taxes (Note 22)
|
260.5
|
|
|
232.4
|
|
||
Derivative financial instruments (Note 24)
|
39.5
|
|
|
18.3
|
|
||
Other assets
|
292.5
|
|
|
314.0
|
|
||
Total assets
|
$
|
23,518.8
|
|
|
$
|
24,784.5
|
|
|
|
|
|
||||
Liabilities and equity
|
|
|
|
||||
Short-term debt and current portion of long-term debt (Note 16)
|
$
|
495.4
|
|
|
$
|
67.4
|
|
Operating lease liabilities (Note 5)
|
275.1
|
|
|
—
|
|
||
Accounts payable, trade
|
2,659.8
|
|
|
2,600.3
|
|
||
Contract liabilities
|
4,585.1
|
|
|
4,085.1
|
|
||
Accrued payroll
|
411.5
|
|
|
394.7
|
|
||
Derivative financial instruments (Note 24)
|
141.3
|
|
|
138.4
|
|
||
Income taxes payable
|
75.7
|
|
|
81.9
|
|
||
Other current liabilities (Note 10)
|
1,494.5
|
|
|
1,771.6
|
|
||
Total current liabilities
|
10,138.4
|
|
|
9,139.4
|
|
||
Long-term debt, less current portion (Note 16)
|
3,980.0
|
|
|
4,124.3
|
|
||
Operating lease liabilities (Note 5)
|
681.7
|
|
|
—
|
|
||
Deferred income taxes (Note 22)
|
138.2
|
|
|
209.2
|
|
||
Accrued pension and other post-retirement benefits, less current portion (Note 23)
|
368.6
|
|
|
298.9
|
|
||
Derivative financial instruments (Note 24)
|
52.7
|
|
|
44.9
|
|
||
Other liabilities
|
430.0
|
|
|
540.4
|
|
||
Total liabilities
|
15,789.6
|
|
|
14,357.1
|
|
||
Commitments and contingent liabilities (Note 21)
|
|
|
|
||||
Mezzanine equity
|
|
|
|
||||
Redeemable noncontrolling interest
|
41.1
|
|
|
38.5
|
|
||
Stockholders’ equity (Note 18)
|
|
|
|
||||
Ordinary shares, $1.00 par value; 618.3 shares and 618.3 shares authorized in 2019 and 2018, respectively; 447.1 shares and 450.5 shares issued and outstanding in 2019 and 2018, respectively; 4.0 and 14.8 shares canceled in 2019 and 2018, respectively
|
447.1
|
|
|
450.5
|
|
||
Ordinary shares held in employee benefit trust, at cost; nil and 0.1 shares in 2019 and 2018, respectively
|
—
|
|
|
(2.4
|
)
|
||
Capital in excess of par value of ordinary shares
|
10,182.8
|
|
|
10,197.0
|
|
||
(Accumulated deficit) retained earnings
|
(1,563.1
|
)
|
|
1,072.2
|
|
||
Accumulated other comprehensive loss
|
(1,407.5
|
)
|
|
(1,359.7
|
)
|
||
Total TechnipFMC plc stockholders’ equity
|
7,659.3
|
|
|
10,357.6
|
|
||
Noncontrolling interests
|
28.8
|
|
|
31.3
|
|
||
Total equity
|
7,688.1
|
|
|
10,388.9
|
|
||
Total liabilities and equity
|
$
|
23,518.8
|
|
|
$
|
24,784.5
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash provided (required) by operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(2,412.1
|
)
|
|
$
|
(1,910.8
|
)
|
|
$
|
134.2
|
|
Adjustments to reconcile net income to cash provided (required) by operating activities
|
|
|
|
|
|
||||||
Depreciation
|
383.5
|
|
|
367.8
|
|
|
370.2
|
|
|||
Amortization
|
126.1
|
|
|
182.6
|
|
|
244.5
|
|
|||
Impairments (Note 20)
|
2,484.1
|
|
|
1,792.6
|
|
|
34.3
|
|
|||
Employee benefit plan and share-based compensation costs
|
63.3
|
|
|
22.4
|
|
|
18.7
|
|
|||
Deferred income tax provision (benefit), net
|
(75.4
|
)
|
|
48.8
|
|
|
141.6
|
|
|||
Unrealized loss (gain) on derivative instruments and foreign exchange
|
32.5
|
|
|
102.7
|
|
|
(73.5
|
)
|
|||
Income from equity affiliates, net of dividends received
|
(58.8
|
)
|
|
(110.7
|
)
|
|
(37.9
|
)
|
|||
Other
|
364.4
|
|
|
291.8
|
|
|
4.7
|
|
|||
Changes in operating assets and liabilities, net of effects of acquisitions
|
|
|
|
|
|
||||||
Trade receivables, net and contract assets
|
(39.7
|
)
|
|
(664.1
|
)
|
|
286.8
|
|
|||
Inventories, net
|
(169.6
|
)
|
|
(339.4
|
)
|
|
130.9
|
|
|||
Accounts payable, trade
|
26.1
|
|
|
(1,248.7
|
)
|
|
(525.8
|
)
|
|||
Contract liabilities
|
520.1
|
|
|
762.7
|
|
|
(1,111.4
|
)
|
|||
Income taxes payable (receivable), net
|
12.7
|
|
|
(190.7
|
)
|
|
(152.2
|
)
|
|||
Other current assets and liabilities, net
|
(431.8
|
)
|
|
921.2
|
|
|
646.5
|
|
|||
Other noncurrent assets and liabilities, net
|
23.1
|
|
|
(213.6
|
)
|
|
99.1
|
|
|||
Cash provided (required) by operating activities
|
848.5
|
|
|
(185.4
|
)
|
|
210.7
|
|
|||
|
|
|
|
|
|
||||||
Cash provided (required) by investing activities
|
|
|
|
|
|
||||||
Capital expenditures
|
(454.4
|
)
|
|
(368.1
|
)
|
|
(255.7
|
)
|
|||
Cash acquired in merger of FMC Technologies, Inc. and Technip S.A. (Note 2)
|
—
|
|
|
—
|
|
|
1,479.2
|
|
|||
Payment to acquire debt securities
|
(71.6
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of debt securities
|
18.9
|
|
|
—
|
|
|
—
|
|
|||
Acquisitions, net of cash acquired
|
16.0
|
|
|
(104.9
|
)
|
|
—
|
|
|||
Cash divested from deconsolidation
|
(2.1
|
)
|
|
(6.7
|
)
|
|
—
|
|
|||
Proceeds from sale of assets
|
7.8
|
|
|
19.5
|
|
|
14.4
|
|
|||
Proceeds from repayment of advance to joint venture
|
62.0
|
|
|
—
|
|
|
—
|
|
|||
Other
|
3.6
|
|
|
—
|
|
|
12.1
|
|
|||
Cash provided (required) by investing activities
|
(419.8
|
)
|
|
(460.2
|
)
|
|
1,250.0
|
|
|||
|
|
|
|
|
|
||||||
Cash provided (required) by financing activities
|
|
|
|
|
|
||||||
Net decrease in short-term debt
|
(49.6
|
)
|
|
(34.9
|
)
|
|
(106.4
|
)
|
|||
Net increase in commercial paper
|
57.3
|
|
|
496.6
|
|
|
234.9
|
|
|||
Proceeds from issuance of long-term debt
|
96.2
|
|
|
—
|
|
|
25.7
|
|
|||
Repayments of long-term debt
|
—
|
|
|
—
|
|
|
(888.0
|
)
|
|||
Purchase of ordinary shares
|
(92.7
|
)
|
|
(442.6
|
)
|
|
(58.5
|
)
|
|||
Dividends paid
|
(232.8
|
)
|
|
(238.1
|
)
|
|
(60.6
|
)
|
|||
Payments related to taxes withheld on share-based compensation
|
—
|
|
|
—
|
|
|
(46.6
|
)
|
|||
Settlements of mandatorily redeemable financial liability
|
(562.8
|
)
|
|
(225.8
|
)
|
|
(156.5
|
)
|
|||
Other
|
—
|
|
|
—
|
|
|
1.2
|
|
|||
Cash provided (required) by financing activities
|
(784.4
|
)
|
|
(444.8
|
)
|
|
(1,054.8
|
)
|
|||
Effect of changes in foreign exchange rates on cash and cash equivalents
|
5.9
|
|
|
(107.0
|
)
|
|
62.2
|
|
|||
Increase (decrease) in cash and cash equivalents
|
(349.8
|
)
|
|
(1,197.4
|
)
|
|
468.1
|
|
|||
Cash and cash equivalents, beginning of year
|
5,540.0
|
|
|
6,737.4
|
|
|
6,269.3
|
|
|||
Cash and cash equivalents, end of year
|
$
|
5,190.2
|
|
|
$
|
5,540.0
|
|
|
$
|
6,737.4
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
||||||
Cash paid for interest (net of interest capitalized)
|
$
|
109.4
|
|
|
$
|
99.0
|
|
|
$
|
50.3
|
|
Cash paid for income taxes (net of refunds received)
|
$
|
374.5
|
|
|
$
|
410.6
|
|
|
$
|
424.7
|
|
(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
Deficit)
|
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
|
Non-
controlling
Interest
|
|
Total
Stockholders’
Equity
|
||||||||||||||
Balance as of December 31, 2016
|
$
|
114.7
|
|
|
$
|
(44.5
|
)
|
|
$
|
2,683.1
|
|
|
$
|
3,362.1
|
|
|
$
|
(1,101.6
|
)
|
|
$
|
(11.7
|
)
|
|
$
|
5,002.1
|
|
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 treasury shares (Note 18)
|
(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 ($0.13 per share) (Note 18)
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
|||||||
Share-based compensation (Note 19)
|
—
|
|
|
—
|
|
|
44.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44.4
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
11.9
|
|
|
12.6
|
|
|||||||
Balance as of December 31, 2017
|
$
|
465.1
|
|
|
$
|
(4.8
|
)
|
|
$
|
10,483.3
|
|
|
$
|
3,406.0
|
|
|
$
|
(1,003.7
|
)
|
|
$
|
21.5
|
|
|
$
|
13,367.4
|
|
Adoption of accounting standards (Note 6)
|
—
|
|
|
—
|
|
|
—
|
|
|
(91.5
|
)
|
|
—
|
|
|
0.1
|
|
|
(91.4
|
)
|
|||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,921.6
|
)
|
|
—
|
|
|
10.8
|
|
|
(1,910.8
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(356.0
|
)
|
|
(4.6
|
)
|
|
(360.6
|
)
|
|||||||
Cancellation of treasury shares (Note 18)
|
(14.8
|
)
|
|
—
|
|
|
(333.5
|
)
|
|
(94.5
|
)
|
|
—
|
|
|
—
|
|
|
(442.8
|
)
|
|||||||
Issuance of ordinary shares
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||||
Net sales of ordinary shares for employee benefit trust
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|||||||
Dividends ($0.52 per share) (Note 18)
|
—
|
|
|
—
|
|
|
—
|
|
|
(238.1
|
)
|
|
—
|
|
|
—
|
|
|
(238.1
|
)
|
|||||||
Share-based compensation (Note 19)
|
—
|
|
|
—
|
|
|
49.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49.1
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
11.9
|
|
|
—
|
|
|
3.5
|
|
|
13.5
|
|
|||||||
Balance as of December 31, 2018
|
$
|
450.5
|
|
|
$
|
(2.4
|
)
|
|
$
|
10,197.0
|
|
|
$
|
1,072.2
|
|
|
$
|
(1,359.7
|
)
|
|
$
|
31.3
|
|
|
$
|
10,388.9
|
|
Adoption of accounting standards (Note 5)
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,415.2
|
)
|
|
—
|
|
|
3.1
|
|
|
(2,412.1
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47.8
|
)
|
|
(0.7
|
)
|
|
(48.5
|
)
|
|||||||
Cancellation of treasury shares (Note 18)
|
(4.0
|
)
|
|
—
|
|
|
(88.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92.7
|
)
|
|||||||
Issuance of ordinary shares
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|||||||
Net sales of ordinary shares for employee benefit trust
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|||||||
Dividends ($0.52 per share) (Note 18)
|
—
|
|
|
—
|
|
|
—
|
|
|
(232.8
|
)
|
|
—
|
|
|
—
|
|
|
(232.8
|
)
|
|||||||
Share-based compensation (Note 19)
|
—
|
|
|
—
|
|
|
74.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74.5
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
(4.9
|
)
|
|
6.0
|
|
|||||||
Balance as of December 31, 2019
|
$
|
447.1
|
|
|
$
|
—
|
|
|
$
|
10,182.8
|
|
|
$
|
(1,563.1
|
)
|
|
$
|
(1,407.5
|
)
|
|
$
|
28.8
|
|
|
$
|
7,688.1
|
|
•
|
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.
|
|
Year Ended
|
||||||||||||||||||||||
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(In millions, except per share data)
|
As Previously Reported
|
|
Adjustments
|
|
As Revised
|
|
As Previously Reported
|
|
Adjustments
|
|
As Revised
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service revenue
|
$
|
9,765.0
|
|
|
$
|
(707.4
|
)
|
|
$
|
9,057.6
|
|
|
$
|
12,210.5
|
|
|
$
|
(764.6
|
)
|
|
$
|
11,445.9
|
|
Product revenue
|
2,565.2
|
|
|
707.4
|
|
|
3,272.6
|
|
|
2,651.8
|
|
|
764.6
|
|
|
3,416.4
|
|
||||||
Total revenue
|
12,552.9
|
|
|
—
|
|
|
12,552.9
|
|
|
15,056.9
|
|
|
—
|
|
|
15,056.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of service revenue
|
7,895.1
|
|
|
(442.4
|
)
|
|
7,452.7
|
|
|
9,984.0
|
|
|
(550.9
|
)
|
|
9,433.1
|
|
||||||
Cost of product revenue
|
2,234.5
|
|
|
442.4
|
|
|
2,676.9
|
|
|
2,403.4
|
|
|
550.9
|
|
|
2,954.3
|
|
||||||
Total costs and expenses
|
13,470.5
|
|
|
—
|
|
|
13,470.5
|
|
|
14,091.7
|
|
|
—
|
|
|
14,091.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to TechnipFMC plc
|
$
|
(1,921.6
|
)
|
|
$
|
—
|
|
|
$
|
(1,921.6
|
)
|
|
$
|
113.3
|
|
|
$
|
—
|
|
|
$
|
113.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) per share attributable to TechnipFMC plc (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
(4.20
|
)
|
|
$
|
—
|
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
|
$
|
—
|
|
|
$
|
0.24
|
|
Diluted
|
$
|
(4.20
|
)
|
|
$
|
—
|
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
|
$
|
—
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares outstanding (Note 8)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
458.0
|
|
|
—
|
|
|
458.0
|
|
|
466.7
|
|
|
—
|
|
|
466.7
|
|
||||||
Diluted
|
458.0
|
|
|
—
|
|
|
458.0
|
|
|
468.3
|
|
|
—
|
|
|
468.3
|
|
(a)
|
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.
|
(b)
|
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)
|
Allocated Goodwill
|
||
Subsea
|
$
|
2,527.7
|
|
Onshore/Offshore
|
1,635.5
|
|
|
Surface Technologies
|
1,017.5
|
|
|
Total
|
$
|
5,180.7
|
|
(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, except per share data)
|
2017
Pro Forma
|
||
Revenue
|
$
|
15,169.8
|
|
Net income attributable to TechnipFMC adjusted for dilutive effects
|
$
|
28.5
|
|
Diluted earnings per share
|
0.06
|
|
|
Year Ended
|
||
In millions
|
December 31, 2019
|
||
Operating lease cost including variable costs
|
$
|
362.4
|
|
Short-term lease costs
|
20.8
|
|
|
Less: sublease income
|
8.9
|
|
|
Net lease cost
|
$
|
374.3
|
|
|
Year Ended
|
||
In millions
|
December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows from operating leases
|
$
|
384.7
|
|
|
|
||
Right-of-use assets obtained in exchange for lease liabilities
|
|
||
Operating leases
|
$
|
125.4
|
|
(In millions, except lease term and discount rate)
|
December 31, 2019
|
|
Weighted average remaining lease term
|
|
|
Operating leases
|
7.5 years
|
|
|
|
|
Weighted average discount rate
|
|
|
Operating leases
|
4.4
|
%
|
(in millions)
|
Operating Leases
|
||
2020
|
$
|
305.3
|
|
2021
|
184.6
|
|
|
2022
|
128.0
|
|
|
2023
|
101.9
|
|
|
2024
|
89.7
|
|
|
Thereafter
|
330.4
|
|
|
Total lease payments
|
1,139.9
|
|
|
Less: Imputed interest (a)
|
183.1
|
|
|
Total lease liabilities (b)
|
$
|
956.8
|
|
(a)
|
Calculated using the interest rate for each lease.
|
(b)
|
Includes the current portion of 275.1 million for operating leases.
|
(In millions)
|
|
||
2019
|
$
|
329.8
|
|
2020
|
286.1
|
|
|
2021
|
192.3
|
|
|
2022
|
123.8
|
|
|
2023
|
102.1
|
|
|
Thereafter
|
485.6
|
|
|
Total lease payment
|
1,519.7
|
|
|
Less: income from sub-leases
|
25.6
|
|
|
Net minimum operating lease payments
|
$
|
1,494.1
|
|
|
Year Ended
|
||
(In millions)
|
December 31, 2019
|
||
Operating lease revenue including variable revenue
|
$
|
266.5
|
|
(in millions)
|
Operating Leases
|
||
2020
|
$
|
29.4
|
|
2021
|
17.5
|
|
|
2022
|
14.3
|
|
|
2023
|
1.0
|
|
|
2024
|
—
|
|
|
Thereafter
|
—
|
|
|
Total undiscounted cash flows
|
$
|
62.2
|
|
a.
|
Subsea
|
b.
|
Onshore/Offshore
|
c.
|
Surface Technologies
|
|
Reportable Segments
|
||||||||||||||||||||||
|
Year Ended
|
||||||||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(In millions)
|
Subsea
|
|
Onshore/
Offshore |
|
Surface Technologies
|
|
Subsea
|
|
Onshore/
Offshore |
|
Surface Technologies
|
||||||||||||
Europe, Russia, Central Asia
|
$
|
1,745.2
|
|
|
$
|
2,813.1
|
|
|
$
|
236.7
|
|
|
$
|
1,528.1
|
|
|
$
|
3,506.1
|
|
|
$
|
227.7
|
|
America
|
1,770.0
|
|
|
766.2
|
|
|
732.1
|
|
|
1,721.5
|
|
|
365.1
|
|
|
865.5
|
|
||||||
Asia Pacific
|
659.9
|
|
|
1,152.5
|
|
|
189.3
|
|
|
532.9
|
|
|
1,236.1
|
|
|
123.2
|
|
||||||
Africa
|
824.8
|
|
|
526.0
|
|
|
61.1
|
|
|
758.1
|
|
|
252.7
|
|
|
57.9
|
|
||||||
Middle East
|
407.1
|
|
|
1,011.0
|
|
|
247.6
|
|
|
181.2
|
|
|
760.7
|
|
|
213.4
|
|
||||||
Total products and services revenue
|
$
|
5,407.0
|
|
|
$
|
6,268.8
|
|
|
$
|
1,466.8
|
|
|
$
|
4,721.8
|
|
|
$
|
6,120.7
|
|
|
$
|
1,487.7
|
|
|
Reportable Segments
|
||||||||||||||||||||||
|
Year Ended
|
||||||||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(In millions)
|
Subsea
|
|
Onshore/
Offshore |
|
Surface Technologies
|
|
Subsea(b)
|
|
Onshore/
Offshore |
|
Surface Technologies
|
||||||||||||
Services
|
$
|
3,244.5
|
|
|
$
|
6,268.8
|
|
|
$
|
276.4
|
|
|
$
|
2,687.1
|
|
|
$
|
6,120.7
|
|
|
$
|
249.8
|
|
Products
|
2,162.5
|
|
|
—
|
|
|
1,190.4
|
|
|
2,034.7
|
|
|
—
|
|
|
1,237.9
|
|
||||||
Total products and services revenue
|
5,407.0
|
|
|
6,268.8
|
|
|
1,466.8
|
|
|
4,721.8
|
|
|
6,120.7
|
|
|
1,487.7
|
|
||||||
Lease and other(a)
|
116.0
|
|
|
—
|
|
|
150.5
|
|
|
118.2
|
|
|
—
|
|
|
104.5
|
|
||||||
Total revenue
|
$
|
5,523.0
|
|
|
$
|
6,268.8
|
|
|
$
|
1,617.3
|
|
|
$
|
4,840.0
|
|
|
$
|
6,120.7
|
|
|
$
|
1,592.2
|
|
(a)
|
Represents revenue not subject to ASC Topic 606.
|
(b)
|
We revised the consolidated statement of operations to correct the classification of service revenue and product revenue in the amount of $707.4 million for the year ended December 31, 2018. See Note 1 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional disclosure related to the revision.
|
(In millions)
|
December 31,
2019 |
|
December 31,
2018 |
|
$ change
|
|
% change
|
|||||||
Contract assets
|
$
|
1,520.0
|
|
|
$
|
1,295.0
|
|
|
$
|
225.0
|
|
|
17.4
|
|
Contract (liabilities)
|
(4,585.1
|
)
|
|
(4,085.1
|
)
|
|
(500.0
|
)
|
|
(12.2
|
)
|
|||
Net contract assets (liabilities)
|
$
|
(3,065.1
|
)
|
|
$
|
(2,790.1
|
)
|
|
$
|
(275.0
|
)
|
|
(9.9
|
)
|
(In millions)
|
2020
|
|
2021
|
|
Thereafter
|
||||||
Subsea
|
$
|
4,506.8
|
|
|
$
|
2,472.4
|
|
|
$
|
1,500.6
|
|
Onshore/Offshore
|
6,581.3
|
|
|
5,127.8
|
|
|
3,589.0
|
|
|||
Surface Technologies
|
411.7
|
|
|
61.5
|
|
|
—
|
|
|||
Total remaining unsatisfied performance obligations
|
$
|
11,499.8
|
|
|
$
|
7,661.7
|
|
|
$
|
5,089.6
|
|
•
|
Subsea - manufactures and designs products and systems, performs engineering, procurement and project management and provides services used by oil and gas companies involved in offshore exploration and production of crude oil and natural gas.
|
•
|
Onshore/Offshore - designs and builds onshore facilities related to the production, treatment, transformation and transportation of hydrocarbons; and designs, manufactures and installs fixed and floating platforms for the production and processing of oil and gas reserves.
|
•
|
Surface Technologies - designs and manufactures systems and provides services used by oil and gas companies involved in land and shallow water exploration and production of crude oil and natural gas; designs, manufactures and supplies technologically advanced high pressure valves and fittings for oilfield service companies; and also provides flowback and well testing services.
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Segment revenue
|
|
|
|
|
|
||||||
Subsea
|
$
|
5,523.0
|
|
|
$
|
4,840.0
|
|
|
$
|
5,877.4
|
|
Onshore/Offshore
|
6,268.8
|
|
|
6,120.7
|
|
|
7,904.5
|
|
|||
Surface Technologies
|
1,617.3
|
|
|
1,592.2
|
|
|
1,274.6
|
|
|||
Other revenue and intercompany eliminations
|
—
|
|
|
—
|
|
|
0.4
|
|
|||
Total revenue
|
$
|
13,409.1
|
|
|
$
|
12,552.9
|
|
|
$
|
15,056.9
|
|
|
|
|
|
|
|
||||||
Segment operating profit (loss)
|
|
|
|
|
|
||||||
Subsea
|
$
|
(1,447.7
|
)
|
|
$
|
(1,529.5
|
)
|
|
$
|
460.5
|
|
Onshore/Offshore
|
959.6
|
|
|
824.0
|
|
|
810.9
|
|
|||
Surface Technologies
|
(656.1
|
)
|
|
172.8
|
|
|
82.7
|
|
|||
Total segment operating profit (loss)
|
(1,144.2
|
)
|
|
(532.7
|
)
|
|
1,354.1
|
|
|||
|
|
|
|
|
|
||||||
Corporate items
|
|
|
|
|
|
||||||
Corporate expense (a)
|
(540.3
|
)
|
|
(594.5
|
)
|
|
(359.2
|
)
|
|||
Interest income
|
116.5
|
|
|
121.4
|
|
|
140.8
|
|
|||
Interest expense
|
(567.8
|
)
|
|
(482.3
|
)
|
|
(456.0
|
)
|
|||
Total corporate items
|
(991.6
|
)
|
|
(955.4
|
)
|
|
(674.4
|
)
|
|||
Income (loss) before income taxes (b)
|
$
|
(2,135.8
|
)
|
|
$
|
(1,488.1
|
)
|
|
$
|
679.7
|
|
(a)
|
Corporate expense primarily includes corporate staff expenses, legal reserve, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger transaction and integration expenses and separation expenses.
|
(b)
|
Includes amounts attributable to noncontrolling interests.
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Segment assets
|
|
|
|
||||
Subsea
|
$
|
10,824.2
|
|
|
$
|
11,037.8
|
|
Onshore/Offshore
|
4,448.8
|
|
|
4,355.2
|
|
||
Surface Technologies
|
2,246.4
|
|
|
2,825.6
|
|
||
Intercompany eliminations
|
(33.9
|
)
|
|
(26.4
|
)
|
||
Total segment assets
|
17,485.5
|
|
|
18,192.2
|
|
||
Corporate (a)
|
6,033.3
|
|
|
6,592.3
|
|
||
Total assets
|
$
|
23,518.8
|
|
|
$
|
24,784.5
|
|
(a)
|
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.
|
(In millions)
|
Year Ended December 31,
|
||||||||||
Revenue:
|
2019
|
|
2018
|
|
2017
|
||||||
Russia
|
$
|
2,378.0
|
|
|
$
|
2,773.3
|
|
|
$
|
4,894.2
|
|
USA
|
1,931.2
|
|
|
1,275.8
|
|
|
1,534.7
|
|
|||
Norway
|
1,371.1
|
|
|
1,202.6
|
|
|
971.2
|
|
|||
Brazil
|
1,099.7
|
|
|
1,478.7
|
|
|
911.1
|
|
|||
Israel
|
757.0
|
|
|
243.8
|
|
|
6.9
|
|
|||
United Kingdom
|
540.8
|
|
|
442.1
|
|
|
465.9
|
|
|||
India
|
518.0
|
|
|
214.0
|
|
|
135.2
|
|
|||
Angola
|
447.8
|
|
|
385.7
|
|
|
1,016.2
|
|
|||
Australia
|
372.8
|
|
|
926.6
|
|
|
953.9
|
|
|||
United Arab Emirates
|
327.2
|
|
|
460.3
|
|
|
308.5
|
|
|||
Malaysia
|
283.8
|
|
|
362.3
|
|
|
374.8
|
|
|||
China
|
272.9
|
|
|
112.3
|
|
|
104.7
|
|
|||
Indonesia
|
237.6
|
|
|
130.7
|
|
|
295.4
|
|
|||
All other countries
|
2,871.2
|
|
|
2,544.7
|
|
|
3,084.2
|
|
|||
Total revenue
|
$
|
13,409.1
|
|
|
$
|
12,552.9
|
|
|
$
|
15,056.9
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Long-lived assets
|
|
|
|
||||
United Kingdom
|
$
|
957.1
|
|
|
$
|
925.6
|
|
United States
|
558.1
|
|
|
589.9
|
|
||
Netherlands
|
493.0
|
|
|
360.5
|
|
||
Norway
|
333.0
|
|
|
311.4
|
|
||
Brazil
|
313.2
|
|
|
325.8
|
|
||
All other countries
|
507.6
|
|
|
746.6
|
|
||
Total long-lived assets
|
$
|
3,162.0
|
|
|
$
|
3,259.8
|
|
|
Capital Expenditures
|
|
Depreciation and
Amortization
|
|
Research and
Development Expense
|
||||||||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
Subsea
|
$
|
287.7
|
|
|
$
|
223.2
|
|
|
$
|
179.1
|
|
|
$
|
345.6
|
|
|
$
|
440.4
|
|
|
$
|
507.2
|
|
|
$
|
134.4
|
|
|
$
|
145.2
|
|
|
$
|
169.2
|
|
Onshore/Offshore
|
22.6
|
|
|
7.6
|
|
|
16.2
|
|
|
38.7
|
|
|
38.2
|
|
|
41.1
|
|
|
13.2
|
|
|
29.7
|
|
|
31.4
|
|
|||||||||
Surface Technologies
|
96.6
|
|
|
111.9
|
|
|
35.4
|
|
|
107.9
|
|
|
66.6
|
|
|
63.6
|
|
|
15.3
|
|
|
14.3
|
|
|
12.3
|
|
|||||||||
Corporate
|
47.5
|
|
|
25.4
|
|
|
25.0
|
|
|
17.4
|
|
|
5.2
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
$
|
454.4
|
|
|
$
|
368.1
|
|
|
$
|
255.7
|
|
|
$
|
509.6
|
|
|
$
|
550.4
|
|
|
$
|
614.7
|
|
|
$
|
162.9
|
|
|
$
|
189.2
|
|
|
$
|
212.9
|
|
|
Year Ended December 31,
|
||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss) attributable to TechnipFMC plc
|
$
|
(2,415.2
|
)
|
|
$
|
(1,921.6
|
)
|
|
$
|
113.3
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares outstanding
|
448.0
|
|
|
458.0
|
|
|
466.7
|
|
|||
Dilutive effect of restricted stock units
|
—
|
|
|
—
|
|
|
0.2
|
|
|||
Dilutive effect of performance shares
|
—
|
|
|
—
|
|
|
1.4
|
|
|||
Total shares and dilutive securities
|
448.0
|
|
|
458.0
|
|
|
468.3
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings (loss) per share attributable to TechnipFMC plc
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
Diluted earnings (loss) per share attributable to TechnipFMC plc
|
$
|
(5.39
|
)
|
|
$
|
(4.20
|
)
|
|
$
|
0.24
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Raw materials
|
$
|
347.5
|
|
|
$
|
366.4
|
|
Work in process
|
290.2
|
|
|
146.4
|
|
||
Finished goods
|
778.3
|
|
|
738.4
|
|
||
Inventory, net
|
$
|
1,416.0
|
|
|
$
|
1,251.2
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Value-added tax receivables
|
$
|
395.2
|
|
|
$
|
305.8
|
|
Other taxes receivables
|
100.7
|
|
|
85.0
|
|
||
Sundry receivables
|
69.6
|
|
|
87.0
|
|
||
Prepaid expenses
|
66.8
|
|
|
91.3
|
|
||
Held-to-maturity investments
|
49.7
|
|
|
—
|
|
||
Current financial assets at amortized cost
|
42.0
|
|
|
—
|
|
||
Asset held for sale
|
25.8
|
|
|
9.6
|
|
||
Other
|
113.9
|
|
|
76.9
|
|
||
Other current assets
|
$
|
863.7
|
|
|
$
|
655.6
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Warranty accruals and project contingencies
|
$
|
310.1
|
|
|
$
|
418.2
|
|
Value added tax and other taxes payable
|
240.4
|
|
|
214.3
|
|
||
Legal provisions
|
183.6
|
|
|
418.2
|
|
||
Social security liability
|
116.5
|
|
|
112.3
|
|
||
Redeemable financial liability
|
129.1
|
|
|
173.0
|
|
||
Compensation accrual
|
89.6
|
|
|
87.3
|
|
||
Provision
|
53.2
|
|
|
135.5
|
|
||
Current portion of accrued pension and other post-retirement benefits
|
14.9
|
|
|
14.0
|
|
||
Liabilities held for sale
|
9.3
|
|
|
16.2
|
|
||
Other accrued liabilities
|
347.8
|
|
|
182.6
|
|
||
Total other current liabilities
|
$
|
1,494.5
|
|
|
$
|
1,771.6
|
|
|
December 31, 2019
|
|||||
|
Percentage Owned
|
|
Carrying Value
(in millions)
|
|||
Dofcon Brasil AS
|
50.0
|
%
|
|
167.4
|
|
|
Serimax Holdings SAS
|
20.0
|
%
|
|
21.5
|
|
|
Magma Global Limited
|
25.0
|
%
|
|
50.2
|
|
|
Other
|
|
|
61.3
|
|
||
Investments in equity affiliates
|
|
|
$
|
300.4
|
|
|
December 31, 2018
|
|||||
|
Percentage Owned
|
|
Carrying Value
(in millions)
|
|||
Technip Odebrecht PLSV CV (“TOP CV”)
|
50.0
|
%
|
|
$
|
136.1
|
|
Dofcon Brasil AS
|
50.0
|
%
|
|
126.2
|
|
|
Serimax Holdings SAS
|
20.0
|
%
|
|
23.2
|
|
|
Magma Global Limited
|
25.0
|
%
|
|
49.8
|
|
|
Other
|
|
|
59.2
|
|
||
Investments in equity affiliates
|
|
|
$
|
394.5
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Subsea
|
$
|
59.8
|
|
|
$
|
80.9
|
|
|
$
|
55.3
|
|
Onshore/Offshore
|
3.1
|
|
|
33.4
|
|
|
0.3
|
|
|||
Income from equity affiliates
|
$
|
62.9
|
|
|
$
|
114.3
|
|
|
$
|
55.6
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
TP JGC Coral France SNC
|
$
|
40.1
|
|
|
$
|
31.6
|
|
TTSJV WLL
|
22.4
|
|
|
—
|
|
||
TOP CV
|
—
|
|
|
10.9
|
|
||
Anadarko Petroleum Company
|
—
|
|
|
4.9
|
|
||
Others
|
14.3
|
|
|
14.3
|
|
||
Total trade receivables
|
$
|
76.8
|
|
|
$
|
61.7
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Chiyoda
|
$
|
24.8
|
|
|
$
|
70.0
|
|
JGC Corporation
|
15.1
|
|
|
69.5
|
|
||
IFP Energies nouvelles
|
2.4
|
|
|
2.4
|
|
||
Dofcon Navegacao
|
2.1
|
|
|
2.5
|
|
||
Magma Global Limited
|
—
|
|
|
0.6
|
|
||
Anadarko Petroleum Company
|
—
|
|
|
0.7
|
|
||
Others
|
6.7
|
|
|
2.9
|
|
||
Total trade payables
|
$
|
51.1
|
|
|
$
|
148.6
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
TTSJV W.L.L.
|
$
|
127.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
TP JGC Coral France SNC
|
110.4
|
|
|
118.2
|
|
|
69.9
|
|
|||
Anadarko Petroleum Company
|
67.1
|
|
|
124.8
|
|
|
111.3
|
|
|||
TOP CV
|
11.9
|
|
|
7.2
|
|
|
—
|
|
|||
Storengy
|
8.8
|
|
|
—
|
|
|
—
|
|
|||
Dofcon Navegacao
|
8.4
|
|
|
2.9
|
|
|
—
|
|
|||
Techdof Brasil AS
|
8.3
|
|
|
7.0
|
|
|
—
|
|
|||
JGC Corporation
|
6.7
|
|
|
—
|
|
|
—
|
|
|||
Others
|
30.1
|
|
|
33.2
|
|
|
56.9
|
|
|||
Total revenue
|
$
|
379.6
|
|
|
$
|
293.3
|
|
|
$
|
238.1
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Chiyoda
|
$
|
25.1
|
|
|
$
|
53.0
|
|
|
$
|
44.1
|
|
JGC Corporation
|
20.8
|
|
|
81.2
|
|
|
46.8
|
|
|||
Arkema S.A.
|
18.9
|
|
|
2.6
|
|
|
—
|
|
|||
Serimax Holdings SAS
|
17.7
|
|
|
0.1
|
|
|
—
|
|
|||
Magma Global Limited
|
7.3
|
|
|
3.0
|
|
|
—
|
|
|||
TP JGC Coral France SNC
|
5.0
|
|
|
—
|
|
|
—
|
|
|||
Jumbo Shipping
|
4.5
|
|
|
—
|
|
|
—
|
|
|||
IFP Energies nouvelles
|
3.8
|
|
|
4.4
|
|
|
—
|
|
|||
Creowave OY
|
2.6
|
|
|
1.9
|
|
|
4.7
|
|
|||
Amaja Oil
|
2.0
|
|
|
—
|
|
|
—
|
|
|||
Altus Intervention
|
1.8
|
|
|
—
|
|
|
—
|
|
|||
Competentia
|
1.6
|
|
|
—
|
|
|
—
|
|
|||
Others
|
31.3
|
|
|
8.5
|
|
|
45.8
|
|
|||
Total expenses
|
$
|
142.4
|
|
|
$
|
154.7
|
|
|
$
|
141.4
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Land and land improvements
|
$
|
108.4
|
|
|
$
|
103.5
|
|
Buildings
|
626.9
|
|
|
656.7
|
|
||
Vessels
|
2,091.9
|
|
|
1,893.3
|
|
||
Machinery and equipment
|
1,930.6
|
|
|
1,905.7
|
|
||
Office fixtures and furniture
|
285.0
|
|
|
300.0
|
|
||
Construction in process
|
130.9
|
|
|
179.0
|
|
||
Other
|
277.1
|
|
|
290.1
|
|
||
|
5,450.8
|
|
|
5,328.3
|
|
||
Accumulated depreciation
|
(2,288.8
|
)
|
|
(2,068.5
|
)
|
||
Property, plant and equipment, net
|
$
|
3,162.0
|
|
|
$
|
3,259.8
|
|
|
2019
|
|
2018
|
Year of cash flows before terminal value
|
4
|
|
5
|
Discount rates
|
12.5% to 15.0%
|
|
12% to 13.0%
|
EBITDA multiples
|
6.0 - 8.5x
|
|
7.0 - 8.5x
|
(In millions)
|
Subsea
|
|
Onshore/Offshore
|
|
Surface Technologies
|
|
Total
|
||||||||
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
|
|
||||
Additions due to business combinations
|
85.0
|
|
|
—
|
|
|
—
|
|
|
85.0
|
|
||||
Impairment
|
(1,383.0
|
)
|
|
—
|
|
|
—
|
|
|
(1,383.0
|
)
|
||||
Purchase accounting adjustments
|
—
|
|
|
—
|
|
|
19.7
|
|
|
19.7
|
|
||||
Translation
|
(30.0
|
)
|
|
(13.9
|
)
|
|
—
|
|
|
(43.9
|
)
|
||||
December 31, 2018
|
4,142.4
|
|
|
2,447.7
|
|
|
1,017.5
|
|
|
7,607.6
|
|
||||
Impairments
|
(1,321.9
|
)
|
|
—
|
|
|
(666.8
|
)
|
|
(1,988.7
|
)
|
||||
Purchase accounting adjustment
|
—
|
|
|
—
|
|
|
9.9
|
|
|
9.9
|
|
||||
Other
|
—
|
|
|
(17.7
|
)
|
|
—
|
|
|
(17.7
|
)
|
||||
Translation
|
(6.4
|
)
|
|
(6.4
|
)
|
|
—
|
|
|
(12.8
|
)
|
||||
December 31, 2019
|
$
|
2,814.1
|
|
|
$
|
2,423.6
|
|
|
$
|
360.6
|
|
|
$
|
5,598.3
|
|
|
December 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Acquired technology
|
$
|
246.7
|
|
|
$
|
73.6
|
|
|
$
|
246.7
|
|
|
$
|
49.3
|
|
Backlog
|
175.0
|
|
|
175.0
|
|
|
175.0
|
|
|
175.0
|
|
||||
Customer relationships
|
285.4
|
|
|
85.9
|
|
|
285.0
|
|
|
57.4
|
|
||||
Licenses, patents and trademarks
|
811.1
|
|
|
227.6
|
|
|
812.6
|
|
|
194.8
|
|
||||
Software
|
215.9
|
|
|
151.1
|
|
|
232.1
|
|
|
159.1
|
|
||||
Other
|
115.9
|
|
|
50.2
|
|
|
84.3
|
|
|
23.4
|
|
||||
Total intangible assets
|
$
|
1,850.0
|
|
|
$
|
763.4
|
|
|
$
|
1,835.7
|
|
|
$
|
659.0
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Bank borrowings
|
247.8
|
|
|
44.2
|
|
||
5.00% 2010 Private placement notes due 2020
|
224.6
|
|
|
—
|
|
||
Other
|
23.0
|
|
|
23.2
|
|
||
Total short-term debt and current portion of long-term debt
|
$
|
495.4
|
|
|
$
|
67.4
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Revolving credit facility
|
$
|
—
|
|
|
$
|
—
|
|
Bilateral credit facilities
|
—
|
|
|
—
|
|
||
Commercial paper
|
1,967.0
|
|
|
1,916.1
|
|
||
Synthetic bonds due 2021
|
492.9
|
|
|
490.9
|
|
||
3.45% Senior Notes due 2022
|
500.0
|
|
|
500.0
|
|
||
5.00% 2010 Private placement notes due 2020
|
224.6
|
|
|
229.0
|
|
||
3.40% 2012 Private placement notes due 2022
|
168.5
|
|
|
171.8
|
|
||
3.15% 2013 Private placement notes due 2023
|
146.0
|
|
|
148.9
|
|
||
3.15% 2013 Private placement notes due 2023
|
140.4
|
|
|
143.1
|
|
||
4.00% 2012 Private placement notes due 2027
|
84.2
|
|
|
85.9
|
|
||
4.00% 2012 Private placement notes due 2032
|
112.3
|
|
|
114.5
|
|
||
3.75% 2013 Private placement notes due 2033
|
112.3
|
|
|
114.5
|
|
||
Bank borrowings
|
513.3
|
|
|
265.2
|
|
||
Other
|
23.0
|
|
|
23.2
|
|
||
Unamortized issuing fees
|
(9.1
|
)
|
|
(11.4
|
)
|
||
Total debt
|
4,475.4
|
|
|
4,191.7
|
|
||
Less: current borrowings
|
495.4
|
|
|
67.4
|
|
||
Long-term debt
|
$
|
3,980.0
|
|
|
$
|
4,124.3
|
|
|
Payments Due by Period
|
||||||||||||||||||
(In millions)
|
Total
payments |
|
Less than
1 year |
|
1-3
years |
|
3-5
years |
|
After 5
years |
||||||||||
Total debt
|
$
|
4,475.4
|
|
|
$
|
495.4
|
|
|
$
|
3,392.4
|
|
|
$
|
285.6
|
|
|
$
|
302.0
|
|
•
|
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”).
|
(Number of shares in millions)
|
Ordinary
Shares Issued
|
|
Ordinary Shares
Held in
Employee
Benefit Trust
|
|
Treasury Stock
|
|||
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 cancellation
|
(2.1
|
)
|
|
—
|
|
|
(2.1
|
)
|
Net stock purchased for employee benefit trust
|
—
|
|
|
0.1
|
|
|
—
|
|
December 31, 2017
|
465.1
|
|
|
0.1
|
|
|
—
|
|
Stock awards
|
0.2
|
|
|
—
|
|
|
—
|
|
Treasury stock purchases
|
—
|
|
|
—
|
|
|
14.8
|
|
Treasury stock cancellation
|
(14.8
|
)
|
|
—
|
|
|
(14.8
|
)
|
Net stock purchased for employee benefit trust
|
—
|
|
|
—
|
|
|
—
|
|
December 31, 2018
|
450.5
|
|
|
0.1
|
|
|
—
|
|
Stock awards
|
0.6
|
|
|
—
|
|
|
—
|
|
Treasury stock purchases
|
—
|
|
|
—
|
|
|
4.0
|
|
Treasury stock cancellation
|
(4.0
|
)
|
|
—
|
|
|
(4.0
|
)
|
Net stock purchased for employee benefit trust
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
December 31, 2019
|
447.1
|
|
|
—
|
|
|
—
|
|
(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 Noncontrolling interest |
||||||||||
December 31, 2017
|
$
|
(1,014.6
|
)
|
|
$
|
27.8
|
|
|
$
|
(16.9
|
)
|
|
$
|
(1,003.7
|
)
|
|
$
|
0.6
|
|
Other comprehensive income (loss) before reclassifications, net of tax
|
(178.7
|
)
|
|
(58.7
|
)
|
|
(74.5
|
)
|
|
(311.9
|
)
|
|
(4.6
|
)
|
|||||
Reclassification adjustment for net (gains) losses included in net income, net of tax
|
(41.1
|
)
|
|
(2.0
|
)
|
|
(1.0
|
)
|
|
(44.1
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss), net of tax
|
(219.8
|
)
|
|
(60.7
|
)
|
|
(75.5
|
)
|
|
(356.0
|
)
|
|
(4.6
|
)
|
|||||
December 31, 2018
|
(1,234.4
|
)
|
|
(32.9
|
)
|
|
(92.4
|
)
|
|
(1,359.7
|
)
|
|
(4.0
|
)
|
|||||
Other comprehensive income (loss) before reclassifications, net of tax
|
16.3
|
|
|
8.9
|
|
|
(82.2
|
)
|
|
(57.0
|
)
|
|
(0.7
|
)
|
|||||
Reclassification adjustment for net (gains) losses included in net income, net of tax
|
(12.0
|
)
|
|
18.2
|
|
|
3.0
|
|
|
9.2
|
|
|
—
|
|
|||||
Other comprehensive income (loss), net of tax
|
4.3
|
|
|
27.1
|
|
|
(79.2
|
)
|
|
(47.8
|
)
|
|
(0.7
|
)
|
|||||
December 31, 2019
|
$
|
(1,230.1
|
)
|
|
$
|
(5.8
|
)
|
|
$
|
(171.6
|
)
|
|
$
|
(1,407.5
|
)
|
|
$
|
(4.7
|
)
|
|
|
Year Ended
|
|
|
||||||||||
(In millions)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
||||||
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 on foreign currency translation
|
|
$
|
12.0
|
|
|
$
|
41.1
|
|
|
$
|
—
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
||||||
Gains (losses) on hedging instruments
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
|
$
|
(26.6
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(39.3
|
)
|
|
Revenue
|
|
|
12.0
|
|
|
3.4
|
|
|
5.3
|
|
|
Costs of sales
|
|||
|
|
—
|
|
|
(0.1
|
)
|
|
0.8
|
|
|
Selling, general and administrative expense
|
|||
|
|
(9.1
|
)
|
|
1.0
|
|
|
(102.2
|
)
|
|
Other Income (expense), net
|
|||
|
|
(23.7
|
)
|
|
1.9
|
|
|
(135.4
|
)
|
|
Income (loss) before income taxes
|
|||
|
|
(5.5
|
)
|
|
(0.1
|
)
|
|
(34.2
|
)
|
|
Provision (benefit) for income taxes
|
|||
|
|
$
|
(18.2
|
)
|
|
$
|
2.0
|
|
|
$
|
(101.2
|
)
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
||||||
Pension and other post-retirement benefits
|
|
|
|
|
|
|
|
|
||||||
Settlements and curtailments
|
|
(0.3
|
)
|
|
3.0
|
|
|
25.3
|
|
|
(a)
|
|||
Amortization of actuarial gain (loss)
|
|
(2.5
|
)
|
|
(0.6
|
)
|
|
(2.5
|
)
|
|
(a)
|
|||
Amortization of prior service credit (cost)
|
|
(1.0
|
)
|
|
(1.3
|
)
|
|
(1.0
|
)
|
|
(a)
|
|||
|
|
(3.8
|
)
|
|
1.1
|
|
|
21.8
|
|
|
Income (loss) before income taxes
|
|||
|
|
(0.8
|
)
|
|
0.1
|
|
|
9.1
|
|
|
Provision (benefit) for income taxes
|
|||
|
|
$
|
(3.0
|
)
|
|
$
|
1.0
|
|
|
$
|
12.7
|
|
|
Net income (loss)
|
(a)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 23 for additional details).
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Share-based compensation expense
|
$
|
74.5
|
|
|
$
|
49.1
|
|
|
$
|
44.4
|
|
Income tax benefits related to share-based compensation expense
|
$
|
20.1
|
|
|
$
|
13.2
|
|
|
$
|
12.0
|
|
|
December 31, 2019
|
||
Share-based compensation expense not yet recognized (in millions)
|
$
|
76.9
|
|
Weighted-average recognition period (in years)
|
1.7
|
|
(Shares in thousands)
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|||
Non-vested at December 31, 2018
|
2,977.4
|
|
|
$
|
30.10
|
|
Granted
|
1,969.1
|
|
|
$
|
21.24
|
|
Vested
|
(347.1
|
)
|
|
$
|
29.44
|
|
Cancelled/forfeited
|
(73.5
|
)
|
|
$
|
27.79
|
|
Non-vested at December 31, 2019
|
4,525.9
|
|
|
$
|
27.44
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Weighted-average fair value (a)
|
$29.04
|
|
$41.97
|
|
$34.42
|
|||
Expected volatility (b)
|
34.00
|
%
|
|
34.00
|
%
|
|
34.87
|
%
|
Risk-free interest rate (c)
|
2.42
|
%
|
|
2.37
|
%
|
|
1.50
|
%
|
Expected performance period in years (d)
|
3.0
|
|
|
3.0
|
|
|
3.0
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average fair value (a)
|
$
|
5.64
|
|
|
$
|
9.07
|
|
|
$
|
8.79
|
|
Expected volatility (b)
|
32.5
|
%
|
|
32.5
|
%
|
|
35.7
|
%
|
|||
Risk-free interest rate (c)
|
2.5
|
%
|
|
2.7
|
%
|
|
2.1
|
%
|
|||
Expected dividend yield (d)
|
2.6
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
|||
Expected term in years (e)
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
(a)
|
The weighted-average fair value was based on stock options granted during the period.
|
(b)
|
Expected volatility is based on normalized historical volatility of our shares over a preceding period commensurate with the expected term of the option.
|
(c)
|
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.
|
(d)
|
Share options awarded in 2019, 2018 and 2017 were valued using an expected dividend yield of 2.6%, 2.0% and 2.0%, respectively.
|
(e)
|
For awards subject to service-based vesting, due to the lack of historical exercise and post-vesting termination patterns of the post-Merger employee base, the expected term was estimated using a simplified method for all awards granted in 2019, 2018 and 2017.
|
|
Number of Shares
|
|
Weighted average exercise price
|
|
Weighted average remaining life
(in years) |
|||
Balance as of December 31, 2016
|
2,188.8
|
|
|
€
|
61.72
|
|
|
5.0
|
Adjustments due to Merger (a)
|
2,188.8
|
|
|
€
|
—
|
|
|
|
Granted
|
798.4
|
|
|
€
|
29.29
|
|
|
|
Exercised
|
—
|
|
|
€
|
—
|
|
|
|
Cancelled
|
(292.2
|
)
|
|
€
|
47.60
|
|
|
|
Balance as of December 31, 2017
|
4,883.8
|
|
|
€
|
36.35
|
|
|
4.6
|
Granted
|
602.2
|
|
|
$
|
30.70
|
|
|
|
Exercised
|
—
|
|
|
$
|
—
|
|
|
|
Cancelled
|
(827.6
|
)
|
|
$
|
47.20
|
|
|
|
Balance as of December 31, 2018
|
4,658.4
|
|
|
$
|
33.68
|
|
|
4.8
|
Granted
|
800.0
|
|
|
$
|
20.98
|
|
|
|
Exercised
|
—
|
|
|
$
|
—
|
|
|
|
Cancelled
|
(616.0
|
)
|
|
$
|
48.65
|
|
|
|
Balance as of December 31, 2019
|
4,842.4
|
|
|
$
|
29.68
|
|
|
5.3
|
Exercisable at December 31, 2019
|
1,617.7
|
|
|
$
|
35.92
|
|
|
3.0
|
(a)
|
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 non-vested shares (see Note 2).
|
|
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
|
||||||
$20.00-$33.00
|
4,330.4
|
|
|
5.7
|
|
$
|
26.55
|
|
|
1,105.7
|
|
|
$
|
26.54
|
|
$45.00-$51.00
|
33.0
|
|
|
2.0
|
|
$
|
45.49
|
|
|
33.0
|
|
|
$
|
45.49
|
|
$55.00-$57.00
|
479.0
|
|
|
1.4
|
|
$
|
56.93
|
|
|
479.0
|
|
|
$
|
56.93
|
|
Total
|
4,842.4
|
|
|
5.3
|
|
$
|
29.68
|
|
|
1,617.7
|
|
|
$
|
35.92
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Impairment expense
|
|
|
|
|
|
||||||
Subsea
|
$
|
1,798.6
|
|
|
$
|
1,784.2
|
|
|
$
|
11.5
|
|
Onshore/Offshore
|
—
|
|
|
—
|
|
|
—
|
|
|||
Surface Technologies
|
685.5
|
|
|
4.5
|
|
|
10.2
|
|
|||
Corporate and other
|
—
|
|
|
3.9
|
|
|
12.6
|
|
|||
Total impairment expense
|
2,484.1
|
|
|
1,792.6
|
|
|
34.3
|
|
|||
|
|
|
|
|
|
||||||
Restructuring and other expense
|
|
|
|
|
|
||||||
Subsea
|
$
|
(46.4
|
)
|
|
$
|
17.7
|
|
|
$
|
88.4
|
|
Onshore/Offshore
|
17.0
|
|
|
(3.4
|
)
|
|
27.0
|
|
|||
Surface Technologies
|
18.7
|
|
|
9.3
|
|
|
9.0
|
|
|||
Corporate and other
|
17.4
|
|
|
15.0
|
|
|
32.8
|
|
|||
Total restructuring and other expense
|
6.7
|
|
|
38.6
|
|
|
157.2
|
|
|||
Total impairment, restructuring and other expense
|
$
|
2,490.8
|
|
|
$
|
1,831.2
|
|
|
$
|
191.5
|
|
(In millions)
|
December 31, 2019
|
||
Financial guarantees (a)
|
$
|
945.5
|
|
Performance guarantees (b)
|
4,916.0
|
|
|
Maximum potential undiscounted payments
|
$
|
5,861.5
|
|
(a)
|
Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party. These tend to be drawn down only if there is a failure to fulfill our financial obligations.
|
(b)
|
Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a nonfinancial obligating agreement. Events that trigger payment are performance-related, such as failure to ship a product or provide a service.
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
United States
|
$
|
(1,406.5
|
)
|
|
$
|
(197.0
|
)
|
|
$
|
284.3
|
|
Outside United States
|
$
|
(729.3
|
)
|
|
$
|
(1,291.1
|
)
|
|
$
|
395.4
|
|
Income (loss) before income taxes
|
$
|
(2,135.8
|
)
|
|
$
|
(1,488.1
|
)
|
|
$
|
679.7
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Current
|
|
|
|
|
|
||||||
United States
|
$
|
34.7
|
|
|
$
|
52.1
|
|
|
$
|
30.2
|
|
Outside United States
|
317.0
|
|
|
321.8
|
|
|
373.7
|
|
|||
Total current
|
351.7
|
|
|
373.9
|
|
|
403.9
|
|
|||
Deferred
|
|
|
|
|
|
||||||
United States
|
2.6
|
|
|
19.5
|
|
|
71.4
|
|
|||
Outside United States
|
(78.0
|
)
|
|
29.3
|
|
|
70.2
|
|
|||
Total deferred
|
(75.4
|
)
|
|
48.8
|
|
|
141.6
|
|
|||
Provision for income taxes
|
$
|
276.3
|
|
|
$
|
422.7
|
|
|
$
|
545.5
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Deferred tax assets attributable to
|
|
|
|
||||
Accrued expenses
|
$
|
124.4
|
|
|
$
|
128.0
|
|
Capital Loss
|
21.1
|
|
|
21.2
|
|
||
Non-deductible interest
|
84.7
|
|
|
89.3
|
|
||
Foreign tax credit carryforwards
|
135.3
|
|
|
105.9
|
|
||
Other tax credits
|
113.2
|
|
|
—
|
|
||
Net operating loss carryforwards
|
430.5
|
|
|
382.8
|
|
||
Inventories
|
6.3
|
|
|
3.2
|
|
||
Research and development credit
|
7.6
|
|
|
6.5
|
|
||
Foreign exchange
|
20.4
|
|
|
32.5
|
|
||
Provisions for pensions and other long-term employee benefits
|
84.1
|
|
|
72.4
|
|
||
Contingencies related to contracts
|
89.9
|
|
|
83.7
|
|
||
Other contingencies
|
73.4
|
|
|
28.7
|
|
||
Margin recognition on construction contracts
|
115.9
|
|
|
34.4
|
|
||
Leasing
|
219.8
|
|
|
—
|
|
||
Revenue in excess of billings on contracts accounted for under the percentage of completion method
|
10.9
|
|
|
—
|
|
||
Other
|
6.9
|
|
|
15.2
|
|
||
Deferred tax assets
|
1,544.4
|
|
|
1,003.8
|
|
||
Valuation allowance
|
(916.9
|
)
|
|
(683.4
|
)
|
||
Deferred tax assets, net of valuation allowance
|
627.5
|
|
|
320.4
|
|
||
|
|
|
|
||||
Deferred tax liabilities attributable to
|
|
|
|
||||
Revenue in excess of billings on contracts accounted for under the percentage of completion method
|
—
|
|
|
9.2
|
|
||
U.S. tax on foreign subsidiaries’ undistributed earnings not indefinitely reinvested
|
10.4
|
|
|
9.4
|
|
||
Property, plant and equipment, intangibles and other assets
|
279.6
|
|
|
278.6
|
|
||
Leasing
|
215.2
|
|
|
—
|
|
||
Deferred tax liabilities
|
505.2
|
|
|
297.2
|
|
||
Net deferred tax assets/(liabilities)
|
$
|
122.3
|
|
|
$
|
23.2
|
|
(In millions)
|
Federal,
State and
Foreign
Tax
|
||
Balance as of December 31, 2017
|
$
|
90.4
|
|
Reductions for tax positions related to prior years
|
(11.5
|
)
|
|
Additions for tax positions related to current year
|
21.1
|
|
|
Reductions for tax positions due to settlements
|
(9.0
|
)
|
|
Balance as of December 31, 2018
|
$
|
91.0
|
|
Reductions for tax positions related to prior years
|
(62.4
|
)
|
|
Additions for tax positions related to current year
|
72.9
|
|
|
Reductions for tax positions due to settlements
|
(20.8
|
)
|
|
Balance as of December 31, 2019
|
$
|
80.7
|
|
|
Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Statutory income tax rate
|
19.0
|
%
|
|
19.0
|
%
|
|
19.3
|
%
|
Net difference resulting from
|
|
|
|
|
|
|||
Foreign earnings subject to different tax rates
|
0.3
|
%
|
|
(9.7
|
)%
|
|
18.2
|
%
|
Net change in unrecognized tax benefits
|
1.3
|
%
|
|
(0.7
|
)%
|
|
4.3
|
%
|
Adjustments on prior year taxes
|
(0.4
|
)%
|
|
(0.7
|
)%
|
|
(4.4
|
)%
|
Change in valuation allowance
|
(8.8
|
)%
|
|
(14.4
|
)%
|
|
19.3
|
%
|
Deferred tax asset/liability revaluation for tax rate change
|
(0.5
|
)%
|
|
(1.7
|
)%
|
|
1.4
|
%
|
U.S. transition tax
|
—
|
%
|
|
(0.8
|
)%
|
|
17.1
|
%
|
Impairments
|
(21.9
|
)%
|
|
(16.5
|
)%
|
|
—
|
%
|
Non-deductible legal provision
|
(0.8
|
)%
|
|
(3.8
|
)%
|
|
—
|
%
|
Other
|
(1.1
|
)%
|
|
0.9
|
%
|
|
5.1
|
%
|
Effective income tax rate
|
(12.9
|
)%
|
|
(28.4
|
)%
|
|
80.3
|
%
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
||||||||||||
Accumulated benefit obligation
|
$
|
669.6
|
|
|
$
|
773.3
|
|
|
$
|
598.1
|
|
|
$
|
664.3
|
|
|
|
|
|
||||
Projected benefit obligation at January 1
|
$
|
598.1
|
|
|
$
|
753.4
|
|
|
$
|
659.8
|
|
|
$
|
898.1
|
|
|
$
|
9.5
|
|
|
$
|
10.0
|
|
Service cost
|
—
|
|
|
16.3
|
|
|
0.2
|
|
|
21.2
|
|
|
—
|
|
|
—
|
|
||||||
Interest cost
|
25.6
|
|
|
18.3
|
|
|
23.8
|
|
|
20.9
|
|
|
0.5
|
|
|
0.4
|
|
||||||
Actuarial (gain) loss
|
80.7
|
|
|
102.8
|
|
|
(47.9
|
)
|
|
(40.0
|
)
|
|
1.4
|
|
|
(0.2
|
)
|
||||||
Amendments
|
—
|
|
|
0.9
|
|
|
0.3
|
|
|
2.7
|
|
|
—
|
|
|
0.1
|
|
||||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
—
|
|
|
(0.6
|
)
|
|
(5.3
|
)
|
|
(89.0
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
11.1
|
|
|
—
|
|
|
(25.7
|
)
|
|
(0.1
|
)
|
|
—
|
|
||||||
Plan participants’ contributions
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(34.7
|
)
|
|
(25.7
|
)
|
|
(32.8
|
)
|
|
(31.7
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||||
Other
|
—
|
|
|
3.4
|
|
|
—
|
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||
Projected benefit obligation at December 31
|
669.7
|
|
|
881.0
|
|
|
598.1
|
|
|
753.4
|
|
|
10.6
|
|
|
9.5
|
|
||||||
Fair value of plan assets at January 1
|
477.4
|
|
|
570.6
|
|
|
576.4
|
|
|
699.2
|
|
|
—
|
|
|
—
|
|
||||||
Actual return on plan assets
|
72.0
|
|
|
89.1
|
|
|
(70.7
|
)
|
|
(16.0
|
)
|
|
—
|
|
|
—
|
|
||||||
Company contributions
|
—
|
|
|
6.9
|
|
|
—
|
|
|
18.5
|
|
|
—
|
|
|
—
|
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
13.5
|
|
|
—
|
|
|
(20.9
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
(87.6
|
)
|
|
—
|
|
|
—
|
|
||||||
Plan participants’ contributions
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(29.4
|
)
|
|
(19.6
|
)
|
|
(28.3
|
)
|
|
(23.3
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
(3.8
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value of plan assets at December 31
|
520.0
|
|
|
657.8
|
|
|
477.4
|
|
|
570.6
|
|
|
—
|
|
|
—
|
|
||||||
Funded status of the plans (liability) at December 31
|
$
|
(149.7
|
)
|
|
$
|
(223.2
|
)
|
|
$
|
(120.7
|
)
|
|
$
|
(182.8
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(9.5
|
)
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
||||||||||||
Current portion of accrued pension and other post-retirement benefits
|
(5.5
|
)
|
|
(8.8
|
)
|
|
(5.5
|
)
|
|
(7.9
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
||||||
Accrued pension and other post-retirement benefits, net of current portion
|
(144.2
|
)
|
|
(214.4
|
)
|
|
(115.2
|
)
|
|
(174.9
|
)
|
|
(10.0
|
)
|
|
(8.8
|
)
|
||||||
Funded status recognized in the consolidated balance sheets at December 31
|
$
|
(149.7
|
)
|
|
$
|
(223.2
|
)
|
|
$
|
(120.7
|
)
|
|
$
|
(182.8
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
(9.5
|
)
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
||||||||||||
Plans with underfunded or non-funded projected benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregate projected benefit obligation
|
$
|
668.4
|
|
|
$
|
741.2
|
|
|
$
|
598.1
|
|
|
$
|
621.1
|
|
|
$
|
10.7
|
|
|
$
|
9.5
|
|
Aggregate fair value of plan assets
|
$
|
518.8
|
|
|
$
|
522.8
|
|
|
$
|
477.4
|
|
|
$
|
439.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
||||||||||||
Plans with underfunded or non-funded accumulated benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregate accumulated benefit obligation
|
$
|
668.4
|
|
|
$
|
292.1
|
|
|
$
|
598.1
|
|
|
$
|
269.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Aggregate fair value of plan assets
|
$
|
518.8
|
|
|
$
|
140.3
|
|
|
$
|
477.4
|
|
|
$
|
126.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pensions
|
|
Other Post-retirement
Benefits
|
||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
|
|
||||||||||||||||||
Components of net periodic benefit cost (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
16.3
|
|
|
$
|
0.2
|
|
|
$
|
21.2
|
|
|
$
|
10.3
|
|
|
$
|
21.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
25.6
|
|
|
18.3
|
|
|
23.8
|
|
|
20.9
|
|
|
26.7
|
|
|
19.6
|
|
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
|||||||||
Expected return on plan assets
|
(41.6
|
)
|
|
(33.5
|
)
|
|
(50.1
|
)
|
|
(41.2
|
)
|
|
(45.5
|
)
|
|
(36.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlement cost
|
—
|
|
|
0.3
|
|
|
0.4
|
|
|
0.4
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Curtailment benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|
(26.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of net actuarial loss (gain)
|
1.8
|
|
|
0.7
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of prior service cost (credit)
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net periodic benefit cost (income)
|
$
|
(14.2
|
)
|
|
$
|
3.1
|
|
|
$
|
(25.7
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(35.3
|
)
|
|
$
|
9.3
|
|
|
$
|
0.5
|
|
|
$
|
0.4
|
|
|
$
|
0.3
|
|
|
Pensions
|
|
Other Post-retirement
Benefits
|
||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(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
|
$
|
(50.2
|
)
|
|
$
|
(47.3
|
)
|
|
$
|
(73.5
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
26.7
|
|
|
$
|
43.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.8
|
)
|
Prior service (cost) credit arising during period
|
—
|
|
|
(0.9
|
)
|
|
0.2
|
|
|
(2.7
|
)
|
|
(0.2
|
)
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlements and curtailments
|
—
|
|
|
0.3
|
|
|
0.4
|
|
|
(3.4
|
)
|
|
(26.8
|
)
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of net actuarial loss (gain)
|
1.8
|
|
|
0.7
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization of prior service cost (credit)
|
—
|
|
|
1.0
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Other
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
(5.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|||||||||
Total recognized in other comprehensive income (loss)
|
$
|
(48.4
|
)
|
|
$
|
(47.0
|
)
|
|
$
|
(72.9
|
)
|
|
$
|
(18.1
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
43.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(0.8
|
)
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
|
||||||
Net actuarial losses (gains)
|
$
|
6.9
|
|
|
$
|
1.9
|
|
|
$
|
—
|
|
Prior service cost (credit)
|
$
|
—
|
|
|
$
|
1.1
|
|
|
$
|
—
|
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
||||||
Discount rate
|
3.40
|
%
|
|
1.70
|
%
|
|
4.40
|
%
|
|
2.54
|
%
|
|
4.31
|
%
|
|
5.04
|
%
|
Rate of compensation increase
|
N/A
|
|
|
2.39
|
%
|
|
N/A
|
|
|
2.24
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
Pensions
|
|
Other
Post-retirement
Benefits
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
|
|
|
|
|
|||||||||
Discount rate
|
4.40
|
%
|
|
2.56
|
%
|
|
3.70
|
%
|
|
2.39
|
%
|
|
4.30
|
%
|
|
2.37
|
%
|
|
5.04
|
%
|
|
4.33
|
%
|
|
4.05
|
%
|
Rate of compensation increase
|
N/A
|
|
|
2.34
|
%
|
|
N/A
|
|
|
2.39
|
%
|
|
4.00
|
%
|
|
2.39
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
Expected rate of return on plan assets
|
8.65
|
%
|
|
5.04
|
%
|
|
8.57
|
%
|
|
4.90
|
%
|
|
9.00
|
%
|
|
6.24
|
%
|
|
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.
|
(In millions)
|
U.S.
|
|
International
|
||||||||||||||||||||||||||||
December 31, 2019
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Cash and cash equivalents
|
$
|
50.5
|
|
|
$
|
50.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.0
|
|
|
$
|
10.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. companies
|
110.3
|
|
|
110.3
|
|
|
—
|
|
|
—
|
|
|
70.4
|
|
|
70.4
|
|
|
—
|
|
|
—
|
|
||||||||
International companies
|
5.4
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
|
251.5
|
|
|
251.5
|
|
|
—
|
|
|
—
|
|
||||||||
Registered investment companies (a)
|
36.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Common/collective trusts (a)
|
12.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Insurance contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
138.5
|
|
|
—
|
|
|
138.5
|
|
|
—
|
|
||||||||
Hedge funds (a)
|
164.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Limited partnerships (a)
|
139.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate and other investments
|
1.3
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
36.0
|
|
|
36.0
|
|
|
—
|
|
|
—
|
|
||||||||
Total assets
|
$
|
520.0
|
|
|
$
|
167.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
659.7
|
|
|
$
|
367.9
|
|
|
$
|
138.5
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
46.8
|
|
|
$
|
46.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11.1
|
|
|
$
|
11.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. companies
|
109.4
|
|
|
109.4
|
|
|
—
|
|
|
—
|
|
|
92.2
|
|
|
92.2
|
|
|
—
|
|
|
—
|
|
||||||||
International companies
|
8.5
|
|
|
8.5
|
|
|
—
|
|
|
—
|
|
|
186.8
|
|
|
186.8
|
|
|
—
|
|
|
—
|
|
||||||||
Registered investment companies (a)
|
32.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Common/collective trusts (a)
|
11.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Insurance contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125.0
|
|
|
—
|
|
|
125.0
|
|
|
—
|
|
||||||||
Hedge funds (a)
|
176.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Limited partnerships (a)
|
89.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Real estate and other investments
|
2.2
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
||||||||
Total assets
|
$
|
477.4
|
|
|
$
|
166.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
569.8
|
|
|
$
|
291.3
|
|
|
$
|
125.0
|
|
|
$
|
—
|
|
(a)
|
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
|
|
|
||||||
2020
|
$
|
35.9
|
|
|
$
|
32.8
|
|
|
$
|
0.6
|
|
2021
|
36.3
|
|
|
28.4
|
|
|
0.6
|
|
|||
2022
|
35.7
|
|
|
29.5
|
|
|
0.6
|
|
|||
2023
|
34.1
|
|
|
31.1
|
|
|
0.6
|
|
|||
2024
|
34.6
|
|
|
33.2
|
|
|
0.6
|
|
|||
2025-2029
|
$
|
177.1
|
|
|
$
|
181.5
|
|
|
$
|
2.6
|
|
|
Net Notional Amount
Bought (Sold)
|
||||
(In millions)
|
|
|
USD Equivalent
|
||
Brazilian real
|
57.6
|
|
|
14.3
|
|
Euro
|
(6.8
|
)
|
|
(7.6
|
)
|
Norwegian krone
|
(124.7
|
)
|
|
(14.2
|
)
|
U.S. dollar
|
7.9
|
|
|
7.9
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(In millions)
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Current - Derivative financial instruments
|
$
|
94.3
|
|
|
$
|
125.0
|
|
|
$
|
83.8
|
|
|
$
|
127.7
|
|
Long-term - Derivative financial instruments
|
34.8
|
|
|
48.0
|
|
|
9.0
|
|
|
35.6
|
|
||||
Total derivatives designated as hedging instruments
|
129.1
|
|
|
173.0
|
|
|
92.8
|
|
|
163.3
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Current - Derivative financial instruments
|
7.6
|
|
|
16.3
|
|
|
11.9
|
|
|
10.7
|
|
||||
Long-term - Derivative financial instruments
|
0.4
|
|
|
0.4
|
|
|
0.1
|
|
|
0.1
|
|
||||
Total derivatives not designated as hedging instruments
|
8.0
|
|
|
16.7
|
|
|
12.0
|
|
|
10.8
|
|
||||
Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium
|
4.3
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
||||
Long-term - Derivative financial instruments - Synthetic Bonds - Embedded Derivatives
|
—
|
|
|
4.3
|
|
|
—
|
|
|
9.2
|
|
||||
Total derivatives
|
$
|
141.4
|
|
|
$
|
194.0
|
|
|
$
|
114.0
|
|
|
$
|
183.3
|
|
|
Gain (Loss) Recognized in OCI
|
||||||||||
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign exchange contracts
|
$
|
10.3
|
|
|
$
|
(75.4
|
)
|
|
$
|
72.1
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||||||||||||
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives
|
Revenue
|
|
Cost of sales
|
|
Selling,
general and administrative expense |
|
Other income (expense), net
|
|
Revenue
|
|
Cost of sales
|
|
Selling,
general and administrative expense |
|
Other income (expense), net
|
|
Revenue
|
|
Cost of sales
|
|
Selling,
general and administrative expense |
|
Other income (expense), net
|
||||||||||||||||||||||||
Cash Flow hedge gain (loss) recognized in income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Foreign Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Amounts reclassified from accumulated OCI to income (loss)
|
$
|
(26.6
|
)
|
|
$
|
12.0
|
|
|
$
|
—
|
|
|
$
|
(9.1
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
3.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
1.0
|
|
|
$
|
(39.3
|
)
|
|
$
|
5.3
|
|
|
$
|
0.8
|
|
|
$
|
(102.2
|
)
|
Amounts excluded from effectiveness testing
|
0.6
|
|
|
(7.6
|
)
|
|
—
|
|
|
(34.9
|
)
|
|
(2.2
|
)
|
|
(4.8
|
)
|
|
—
|
|
|
(12.3
|
)
|
|
9.5
|
|
|
(9.0
|
)
|
|
0.1
|
|
|
23.0
|
|
||||||||||||
Total cash flow hedge gain (loss) recognized in income
|
(26.0
|
)
|
|
4.4
|
|
|
—
|
|
|
(44.0
|
)
|
|
(4.6
|
)
|
|
(1.4
|
)
|
|
(0.1
|
)
|
|
(11.3
|
)
|
|
(29.8
|
)
|
|
(3.7
|
)
|
|
0.9
|
|
|
(79.2
|
)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Gain (loss) recognized in income on derivatives not designated as hedging instruments
|
(1.6
|
)
|
|
0.2
|
|
|
—
|
|
|
(10.2
|
)
|
|
(1.7
|
)
|
|
0.2
|
|
|
—
|
|
|
(11.4
|
)
|
|
0.9
|
|
|
(0.3
|
)
|
|
—
|
|
|
43.0
|
|
||||||||||||
Total
|
$
|
(27.6
|
)
|
|
$
|
4.6
|
|
|
$
|
—
|
|
|
$
|
(54.2
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(22.7
|
)
|
|
$
|
(28.9
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
0.9
|
|
|
$
|
(36.2
|
)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(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
|
$
|
141.4
|
|
|
$
|
(112.5
|
)
|
|
$
|
28.9
|
|
|
$
|
114.0
|
|
|
$
|
(105.9
|
)
|
|
$
|
8.1
|
|
Derivative liabilities
|
$
|
194.0
|
|
|
$
|
(112.5
|
)
|
|
$
|
81.5
|
|
|
$
|
183.3
|
|
|
$
|
(105.9
|
)
|
|
$
|
77.4
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(In millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities(a)
|
$
|
54.8
|
|
|
$
|
54.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40.4
|
|
|
$
|
40.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Money market fund
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
||||||||
Stable value fund(b)
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Held to maturity
|
71.9
|
|
|
—
|
|
|
71.9
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Synthetic bonds - call option premium
|
4.3
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
||||||||
Foreign exchange contracts
|
137.1
|
|
|
—
|
|
|
137.1
|
|
|
—
|
|
|
104.8
|
|
|
—
|
|
|
104.8
|
|
|
—
|
|
||||||||
Assets held for sale
|
25.8
|
|
|
—
|
|
|
—
|
|
|
25.8
|
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
||||||||
Total assets
|
$
|
297.5
|
|
|
$
|
54.8
|
|
|
$
|
214.8
|
|
|
$
|
25.8
|
|
|
$
|
186.1
|
|
|
$
|
40.4
|
|
|
$
|
135.6
|
|
|
$
|
9.6
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Redeemable financial liability
|
$
|
268.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
268.8
|
|
|
$
|
408.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
408.5
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Synthetic bonds - embedded derivatives
|
4.3
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
||||||||
Foreign exchange contracts
|
189.7
|
|
|
—
|
|
|
189.7
|
|
|
—
|
|
|
174.1
|
|
|
—
|
|
|
174.1
|
|
|
—
|
|
||||||||
Liabilities held for sale
|
9.3
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
|
16.2
|
|
|
—
|
|
|
—
|
|
|
16.2
|
|
||||||||
Total liabilities
|
$
|
472.1
|
|
|
$
|
—
|
|
|
$
|
194.0
|
|
|
$
|
278.1
|
|
|
$
|
608.0
|
|
|
$
|
—
|
|
|
$
|
183.3
|
|
|
$
|
424.7
|
|
(a)
|
Includes fixed income and other investments measured at fair value.
|
(b)
|
Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of period
|
|
$
|
408.5
|
|
|
$
|
312.0
|
|
|
$
|
174.8
|
|
Less: Expenses recognized in net interest expense
|
|
(423.1
|
)
|
|
(322.3
|
)
|
|
(293.7
|
)
|
|||
Less: Settlements
|
|
562.8
|
|
|
225.8
|
|
|
156.5
|
|
|||
Balance at end of period
|
|
$
|
268.8
|
|
|
$
|
408.5
|
|
|
$
|
312.0
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(In millions)
|
Carrying Amount (a)
|
|
Fair Value (b)
|
|
Carrying Amount (a)
|
|
Fair Value (b)
|
||||||||
Synthetic bonds due 2021
|
$
|
492.9
|
|
|
$
|
513.1
|
|
|
$
|
490.9
|
|
|
$
|
532.4
|
|
3.45% Senior Notes due 2022
|
500.0
|
|
|
499.2
|
|
|
500.0
|
|
|
489.7
|
|
||||
5.00% Notes due 2020
|
224.6
|
|
|
230.0
|
|
|
229.0
|
|
|
244.0
|
|
||||
3.40% Notes due 2022
|
168.5
|
|
|
180.6
|
|
|
171.8
|
|
|
186.9
|
|
||||
3.15% Notes due 2023
|
146.0
|
|
|
156.8
|
|
|
148.9
|
|
|
161.3
|
|
||||
3.15% Notes due 2023
|
140.4
|
|
|
150.5
|
|
|
143.1
|
|
|
153.3
|
|
||||
4.00% Notes due 2027
|
84.2
|
|
|
96.4
|
|
|
85.9
|
|
|
95.8
|
|
||||
4.00% Notes due 2032
|
112.3
|
|
|
127.8
|
|
|
114.5
|
|
|
120.2
|
|
||||
3.75% Notes due 2033
|
112.3
|
|
|
123.8
|
|
|
114.5
|
|
|
126.1
|
|
(a)
|
Carrying amounts include unamortized debt discounts and premiums and unamortized debt issuance costs of $9.1 million and $11.4 million as of 2019 and 2018, respectively.
|
(b)
|
Fair values are based on Level 2 quoted market rates.
|
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
(In millions, except per share data)
|
4th Qtr.
|
|
3rd Qtr.
|
|
2nd Qtr.
|
|
1st Qtr.
|
|
4th Qtr.
|
|
3rd Qtr.
|
|
2nd Qtr.
|
|
1st Qtr.
|
||||||||||||||||
Revenue
|
$
|
3,726.8
|
|
|
$
|
3,335.1
|
|
|
$
|
3,434.2
|
|
|
$
|
2,913.0
|
|
|
$
|
3,323.0
|
|
|
$
|
3,143.8
|
|
|
$
|
2,960.9
|
|
|
$
|
3,125.2
|
|
Cost of sales
|
3,067.2
|
|
|
2,726.4
|
|
|
2,745.2
|
|
|
2,411.9
|
|
|
2,767.7
|
|
|
2,558.5
|
|
|
2,422.2
|
|
|
2,524.6
|
|
||||||||
Net income (loss)
|
(2,430.3
|
)
|
|
(115.3
|
)
|
|
113.7
|
|
|
19.8
|
|
|
(2,246.5
|
)
|
|
134.2
|
|
|
110.1
|
|
|
91.4
|
|
||||||||
Net income (loss) attributable to TechnipFMC plc
|
$
|
(2,414.0
|
)
|
|
$
|
(119.1
|
)
|
|
$
|
97.0
|
|
|
$
|
20.9
|
|
|
$
|
(2,259.3
|
)
|
|
$
|
136.9
|
|
|
$
|
105.7
|
|
|
$
|
95.1
|
|
Basic earnings (loss) per share (1)
|
$
|
(5.40
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
0.22
|
|
|
$
|
0.05
|
|
|
$
|
(5.00
|
)
|
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
Diluted earnings (loss) per share (1)
|
$
|
(5.40
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
0.21
|
|
|
$
|
0.05
|
|
|
$
|
(5.00
|
)
|
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.20
|
|
(1)
|
Basic and diluted earnings (loss) per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings (loss) per share.
|
(i)
|
period-end financial reporting
|
(ii)
|
accounting for income taxes.
|
•
|
Provided additional training and continuous guidance to finance team members on the requirements around control processes;
|
•
|
Improved the timeliness and effectiveness of our review and approval procedures; and
|
•
|
Improved the control activities and execution thereof related to the review of adjustments to and reconciliations of financial information.
|
•
|
Reinforced the proper usage of the Company’s global taxation tool, implemented in 2018, by issuing detailed instructions and application descriptions;
|
•
|
Provided additional training to finance team members on the appropriate use of the global taxation tool;
|
•
|
Improved the timeliness and effectiveness of our review and approval procedures; and
|
•
|
Improved the control activities and execution thereof related to our accounting for income taxes.
|
Name
|
|
|
Principal Occupation
|
Douglas J. Pferdehirt
|
|
|
Executive Chairman and Chief Executive Officer of TechnipFMC
|
Eleazar de Carvalho Filho
|
|
|
Founding Partner of Virtus BR Partners Assessoria Corporativa Ltda. and Founding Partner of Sinfonia Consultoria Financeira e Participações Ltda., financial advisory and consulting firms
|
Arnaud Caudoux
|
|
|
Deputy Chief Executive Officer of Banque publique d'investissement, a French state-owned investment bank
|
Pascal Colombani
|
|
|
President of TII Strategies SASU, a consulting and investment company
|
Marie-Ange Debon
|
|
|
Former Senior Executive Vice President of the Suez Group, a global water and waste company, managing France, Italy, and Central and Eastern Europe operations of the Suez Group
|
Claire S. Farley
|
|
|
Vice Chairman in the Energy & Infrastructure business of KKR & Co. L.P., a global investment firm
|
Didier Houssin
|
|
|
Chairman and Chief Executive Officer of IFP Énergies nouvelles, a research and training company in the fields of energy, transport, and the environment
|
Peter Mellbye
|
|
|
Former Executive Vice President, Development & Production, International, of Statoil ASA, an international oil and gas company
|
John O’Leary
|
|
|
Chief Executive Officer of Strand Energy, a Dubai-based company specializing in business development in the oil and gas industry
|
Olivier Piou
|
|
|
Former Chief Executive Officer and Board member of Gemalto N.V., an international digital security company
|
Kay G. Priestly
|
|
|
Former Chief Executive Officer of Turquoise Hill Resources Ltd., an international mining company
|
Joseph Rinaldi
|
|
|
Managing Partner of Fennecourt Partners, LLC, an investment management and consulting firm
|
James M. Ringler
|
|
|
Former non-executive Chairman of the Board of Teradata Corporation, a provider of database software, data warehousing and analytics
|
John Yearwood
|
|
|
Former Chief Executive Officer, President, and Chief Operating Officer of Smith International, Inc., a supplier of services and manufactured products to oil and gas exploration and production companies
|
(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
|
||||
Equity compensation plans approved by security holders
|
4,842.4
|
|
|
$
|
29.68
|
|
|
21,350.2
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
4,842.4
|
|
|
$
|
29.68
|
|
|
21,350.2
|
|
(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:
|
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, 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
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
117.4
|
|
|
$
|
54.7
|
|
|
$
|
0.3
|
|
|
$
|
(52.8
|
)
|
|
$
|
119.6
|
|
Valuation allowance for deferred tax assets
|
$
|
430.0
|
|
|
$
|
213.8
|
|
|
$
|
(21.3
|
)
|
|
$
|
60.9
|
|
|
$
|
683.4
|
|
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
119.6
|
|
|
$
|
22.0
|
|
|
$
|
(2.9
|
)
|
|
$
|
(43.3
|
)
|
|
$
|
95.4
|
|
Valuation allowance for deferred tax assets
|
$
|
683.4
|
|
|
$
|
187.0
|
|
|
$
|
(2.1
|
)
|
|
$
|
48.6
|
|
|
$
|
916.9
|
|
(a)
|
“Additions charged to other accounts” includes translation adjustments.
|
(b)
|
“Deductions and adjustments” includes write-offs, net of recoveries, increases in allowances offset by increases to deferred tax assets, and reductions in the allowances credited to expense.
|
Exhibit
Number
|
|
Exhibit Description
|
2.1
|
|
|
2.1.a
|
|
|
2.3
|
|
|
3.1
|
|
|
4.1
|
|
|
4.1.a
|
|
|
4.2
|
|
|
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
|
|
|
10.30
|
|
|
10.31
|
|
|
10.32
|
|
|
21.1
|
|
|
23.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1**
|
|
|
32.2**
|
|
|
101.INS
|
|
XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
TechnipFMC plc
(Registrant)
|
|
|
|
|
|
By:
|
/S/ KRISZTINA DOROGHAZI
|
|
|
Krisztina Doroghazi
Senior Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer and a Duly Authorized Officer)
|
Date
|
|
Signature
|
|
|
|
March 2, 2020
|
|
/S/ DOUGLAS J. PFERDEHIRT
|
|
|
Douglas J. Pferdehirt
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
March 2, 2020
|
|
/S/ MARYANN T. MANNEN
|
|
|
Maryann T. Mannen
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
March 2, 2020
|
|
/S/ ELEAZAR DE CARVALHO FILHO
|
|
|
Eleazar de Carvalho Filho,
Director
|
|
|
|
March 2, 2020
|
|
/S/ ARNAUD CAUDOUX
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Arnaud Caudoux,
Director
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March 2, 2020
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/S/ PASCAL COLOMBANI
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Pascal Colombani, Director
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March 2, 2020
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/S/ MARIE-ANGE DEBON
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Marie-Ange Debon,
Director
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March 2, 2020
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/S/ CLAIRE S. FARLEY
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Claire S. Farley,
Director
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March 2, 2020
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/S/ DIDIER HOUSSIN
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Didier Houssin,
Director
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March 2, 2020
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/S/ PETER MELLBYE
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Peter Mellbye,
Director
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March 2, 2020
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/S/ JOHN O’LEARY
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John O’Leary,
Director
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March 2, 2020
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/S/ OLIVIER PIOU
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Oliver Piou,
Director
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March 2, 2020
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/S/ KAY G. PRIESTLY
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Kay G. Priestly,
Director
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March 2, 2020
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/S/ JOSEPH RINALDI
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Joseph Rinaldi,
Director
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March 2, 2020
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/S/ JAMES M. RINGLER
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James M. Ringler,
Director
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March 2, 2020
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/S/ JOHN YEARWOOD
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John Yearwood, Director
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•
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increase its share capital by allotting and issuing new shares in accordance with the Articles and any relevant shareholder resolution;
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•
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consolidate all or any of its share capital into shares of a larger nominal amount (i.e., nominal value) than the existing shares;
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•
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subdivide any of its shares into shares of a smaller nominal amount (i.e., nominal value) than its existing shares;
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•
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redeem and/or cancel any of its shares;
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•
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redenominate its share capital or any class of share capital; or
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•
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determine that, as between the shares resulting from such a sub-division, any of them may have any preference or advantage or different rights as compared with the others.
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•
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Shareholder notice on director nomination. Except as may otherwise be specified by the Articles, for nominations to be properly brought before an annual meeting by a shareholder, the shareholder must have given timely notice in writing to the secretary of the Company not earlier than the close of business on the 120th calendar day nor later than the close of business on the 90th calendar day prior to the date of the first anniversary of the preceding year’s annual general meeting.
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•
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Removal of Directors. The members may by ordinary resolution remove a Director at any time either with or without cause. The Board may by a two-thirds vote of the entire Board remove a Director at any time either with or without cause.
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•
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Power to issue ordinary shares with different or modified rights. Any share in the Company may be issued with preferred, deferred or other special rights, or subject to restrictions, whether as regards dividend, return of capital, voting or otherwise, as the Company may from time to time by ordinary resolution determine (or, in the absence of any such determination, as the Board may determine), and shares may be issued which are to be redeemed or are to be liable to be redeemed at the option of the Company or the holder and the Board may determine the terms, conditions and manner of redemption of shares provided that it does so before the shares are allotted.
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•
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Variation of Rights. Subject to the Articles and the provisions of the Companies Act, if at any time the capital of the Company is divided into different classes of shares, all or any of the rights attached to any existing class may from time to time be varied or abrogated, either while the Company is a going concern or during or in contemplation of a winding up, (a) in such manner (if any) as may be provided by those rights; (b) with the written consent of the holders of 75% in nominal value of the issued shares of that class (excluding any shares of that class held as treasury shares); or (c) with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class.
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1.
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I have reviewed this annual report on Form 10-K for the period ended December 31, 2019 of TechnipFMC plc (the “registrant”);
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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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):
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(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ DOUGLAS J. PFERDEHIRT
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Douglas J. Pferdehirt
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Chief Executive Officer
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(Principal Executive Officer)
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1.
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I have reviewed this this annual report on Form 10-K for the period ended December 31, 2019 of TechnipFMC plc (the “registrant”);
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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.
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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;
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4.
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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:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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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):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ MARYANN T. MANNEN
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Maryann T. Mannen
|
|
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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/s/ DOUGLAS J. PFERDEHIRT
|
|
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Douglas J. Pferdehirt
|
|
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Chief Executive Officer
|
|
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(Principal Executive Officer)
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|
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/s/ MARYANN T. MANNEN
|
|
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Maryann T. Mannen
|
|
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Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
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