BUSINESS SEGMENTS

Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide, which corresponds to the manner in which our Chief Executive Officer, as our chief operating decision maker, reviews and evaluates operating performance to make decisions about resources to be allocated to the segment.

Upon completion of the Merger, we reorganized our reporting structure and aligned our segments and the underlying businesses to execute the strategy of TechnipFMC. As a result, we report the results of operations in the following segments: Subsea, Onshore/Offshore and Surface Technologies.

Our reportable segments are:


•	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 oil and gas; 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.

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. 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						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Segment revenue
Subsea	$	1,217.4		$	1,730.3		$	2,397.6		$	3,107.0
Onshore/Offshore	1,342.4			1,812.9			2,915.8			3,576.9
Surface Technologies	401.1			300.0			772.7			548.4
Other revenue	—			1.8			—			0.7
Total revenue	2,960.9			3,845.0			$	6,086.1		$	7,233.0

Segment operating profit (loss)
Subsea	75.9			236.1			$	130.3		$	290.3
Onshore/Offshore	171.3			204.5			374.2			347.3
Surface Technologies	51.5			(1.0		)	82.1			(19.6		)
Total segment operating profit	298.7			439.6			586.6			618.0

Corporate items
Corporate expense^(a)	(73.0		)	(122.3		)	(132.8		)	(182.0		)
Net interest expense	(50.9		)	(72.1		)	(138.3		)	(154.2		)
Total corporate items	(123.9		)	(194.4		)	(271.1		)	(336.2		)
Income before income taxes^(b)	$	174.8		$	245.2		$	315.5		$	281.8


a.	Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger-related transaction expenses.


b.	Includes amounts attributable to noncontrolling interests.

Segment assets were as follows:



(In millions)	June 30, 2018			December 31, 2017
Segment assets:
Subsea	$	13,837.8		$	12,944.4
Onshore/Offshore	4,458.8			4,604.8
Surface Technologies	2,647.2			2,453.3
Intercompany eliminations	(20.2		)	(24.3		)
Total segment assets	20,923.6			19,978.2
Corporate ⁽¹⁾	6,134.9			8,285.5
Total assets	$	27,058.5		$	28,263.7

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⁽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.