EQUITY METHOD INVESTMENTS

The equity method of accounting is used to account for investments in unconsolidated affiliates where we can have the ability to exert significant influence over the affiliates operating and financial policies.

For certain construction joint ventures, we use the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. None of our proportionate consolidation investments, individually or in the aggregate, are significant to our consolidated results for 2017, 2016, or 2015.

Our equity investments were as follows as of December 31, 2017:



	December 31, 2017
	Percentage Owned		Carrying Value
Technip Odebrecht PLSV CV	50.0	%	111.4
Dofcon Brasil AS	50.0	%	74.1
Serimax Holdings SAS	20.0	%	25.1
FSTP Brasil Ltda	25.0	%	21.5
Other			40.4
Investments in equity affiliates			272.5

Our income (loss) from equity affiliates included in each of our reporting segments was as follows:



	Year Ended December 31,
(In millions)	2017		2016		2015
Subsea	$	55.3	$	35.0	$	21.2
Onshore/Offshore	0.3		82.7		29.8
Surface Technologies	—		—		—
Income from equity affiliates	$	55.6	$	117.7	$	51.0

Summarized financial information⁽²⁾—Summarized financial information for our equity method investments is presented below for 2016 and 2015. Our major equity method investments are as follows:

Technip Odebrecht. Technip Odebrecht PLSV CV (“Technip Odebrecht”) is an affiliated company in the form of a joint venture between Technip SA and Odebrecht Oleo & Gas. Technip Odebrecht was formed in 2011 when awarded a contract to provide pipeline installation ships to state-controlled Petroleo Brasileiro SA (“Petrobras”) for their work in oil and gas fields offshore Brazil. We have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment.

Dofcon. Dofcon Brasil AS (“Dofcon”) is an affiliated company in the form of a joint venture between Technip SA and DOF Subsea and was founded in 2006. Dofcon provides Pipe-Laying Support Vessels (PLSVs) for work in oil and gas fields offshore Brazil. Dofcon is considered a VIE because it does not have sufficient equity to finance its activities without additional subordinated financial. We are not the primarily beneficiary of the VIE. As such, we have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment.

Serimax. Serimax Holdings SAS (“Serimax”) is an affiliated company in the form of a joint venture between Technip SA and Vallourec SA and was founded in 2016. Serimax is headquartered in Paris, France and provides rigid pipes welding services for work in oil and gas fields around the world. We have accounted for our 20% investment using the equity method of accounting with results reported in our Subsea segment.

FSTP Brasil. FSTP Brasil Ltda. (“FSTP Brasil”) is an affiliated company in the form of a joint venture between Technip Brasil - Engenharia, Instalações e Apoio Marítimo Ltda. and Keppel FELS Brasil S.A. FSTP Brasil was formed in 2003 to operate in the engineering, construction, manufacture and repair of offshore platforms and vessels segments, especially for oil and natural gas companies. We have accounted for our 25% investment using the equity method of accounting with results reported in our Subsea segment.

Yamgaz. In 2015, Yamgaz was an affiliated company in the form of a joint venture between Technip, JGC Corporation (“JGC”), and Chiyoda International Corporation (“Chiyoda”). Yamgaz was formed in 2013 when it was awarded a contract to carry out the engineering, procurement, supply, construction and commissioning of an integrated facility for natural gas liquefaction based on the resources of the South Tambey Gas Condensate field located on the Yamal Peninsula, Russia. In the fourth quarter of 2016, we obtained voting control interests in legal onshore/offshore contract entities which own and account for the design, engineering and construction of the Yamal LNG plant. Prior to the amendments of the contractual terms that provided us with voting interest control, we accounted for our 50% investment using the equity method of accounting with results reported in our Onshore/Offshore segment. Subsequent to this transaction we recorded the results in our consolidated financial information.

The following table presents summarized financial information of the equity method investments:



(In millions)	2016 ⁽¹⁾			2015
As of December 31
Current assets	$	619.2		$	4,769.3
Noncurrent assets	2,176.1			1,587.2
Current liabilities	796.9			4,853.7
Noncurrent liabilities	1,355.0			925.6
Year ended December 31
Revenues	$	6,782.9		$	5,426.1
Gross profit	461.0			721.8
Net income (loss)	(348.4		)	561.1

⁽¹⁾ As discussed above, in the fourth quarter of 2016, we obtained the voting control interests of legal Onshore/Offshore entities that own and account for the design, engineering and construction of Yamal. As a result of the acquisition and consolidation, we recorded $3.5 billion in cash, $601.7 million in advances to suppliers, $71.1 million in intangibles, $3.8 billion in current liabilities, $191.2 million in noncurrent liabilities, and a $7.7 million gain.

⁽²⁾As of December 31, 2017, our equity method investments were no longer significant individually or in the aggregate. As such, summarized financial information for 2017 is not presented.