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Business Segments
 6 Months Ended
Jun. 30, 2017
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segments
BUSINESS SEGMENTS
Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide, which corresponds to the manner in which our chief operating decision maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment.
Upon completion of the Merger, we reorganized our reporting structure and aligned our segments and the underlying businesses to execute the strategy of TechnipFMC. As a result, we report the results of operations in the following segments: Subsea, Onshore/Offshore and Surface Technologies.
Our reportable segments are:
•
Subsea—manufactures and designs products and systems, performs engineering, procurement and project management and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas.
•
Onshore/Offshore—designs and builds onshore facilities related to the production, treatment and transportation of oil and gas; and designs, manufactures and installs fixed and floating platforms for the production and processing of oil and gas reserves for companies in the oil and gas industry.
•
Surface Technologies—designs and manufactures systems and provides services used by oil and gas companies involved in land and offshore exploration and production of crude oil and natural gas; designs, manufactures and supplies technologically advanced high pressure valves and fittings for oilfield service companies; and also provides flowback and well testing services for exploration companies in the oil and gas industry.
Total revenue by segment includes intersegment sales, which are made at prices approximating those that the selling entity is able to obtain on external sales. Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in computing segment operating profit. Refer to Note 8 for additional information. The following items have been excluded in computing segment operating profit: corporate staff expense, net interest income (expense) associated with corporate debt facilities, income taxes, and other revenue and other expense, net.
Segment revenue and segment operating profit were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Segment revenue
 
 
 
 
 
 
 
Subsea
$
1,730.3

 
$
1,547.2

 
$
3,107.0

 
$
3,064.4

Onshore/Offshore
1,812.9

 
823.3

 
3,576.9

 
1,711.8

Surface Technologies
300.0

 
—

 
548.4

 
—

Other revenue and intercompany eliminations
1.8

 


 
0.7

 
—

Total revenue
$
3,845.0

 
$
2,370.5

 
$
7,233.0

 
$
4,776.2

Income before income taxes:
 
 
 
 
 
 
 
Segment operating profit (loss):
 
 
 
 
 
 
 
Subsea
$
236.1

 
$
191.5

 
$
290.3

 
$
387.9

Onshore/Offshore
204.5

 
30.5

 
347.3

 
68.9

Surface Technologies
(1.0
)
 
—

 
(19.6
)
 
—

Total segment operating profit
439.6

 
222.0

 
618.0

 
456.8

Corporate items:
 
 
 
 
 
 
 
Corporate expense (1)
(122.3
)
 
(105.1
)
 
(182.0
)
 
(160.1
)
Net interest expense
(72.1
)
 
(7.7
)
 
(154.2
)
 
(21.0
)
Total corporate items
(194.4
)
 
(112.8
)
 
(336.2
)
 
(181.1
)
Income before income taxes (2)
$
245.2

 
$
109.2

 
$
281.8

 
$
275.7

 _______________________  
(1) 
Corporate expense primarily includes corporate staff expenses, stock-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses.
(2) 
Includes amounts attributable to noncontrolling interests.




Segment assets were as follows: 
(In millions)
June 30, 2017
 
December 31, 2016
Segment assets:
 
 
 
Subsea
$
13,364.4

 
$
7,823.1

Onshore/Offshore
5,264.9

 
3,229.3

Surface Technologies
2,363.7

 
—

Intercompany eliminations
(12.1
)
 
—

Total segment assets
20,980.9

 
11,052.4

Corporate (1)
8,543.6

 
7,637.3

Total assets
$
29,524.5

 
$
18,689.7

  _______________________  
(1) 
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.