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. Refer to Note 9 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



	Year Ended December 31,
(In millions)	2018			2017			2016
Segment revenue
Subsea	$	4,840.0		$	5,877.4		$	5,850.5
Onshore/Offshore	6,120.7			7,904.5			3,349.1
Surface Technologies	1,592.2			1,274.6			—
Other revenue and intercompany eliminations	—			0.4			—
Total revenue	$	12,552.9		$	15,056.9		$	9,199.6

Segment operating profit (loss)
Subsea	$	(1,529.5	)	$	460.5		$	732.0
Onshore/Offshore	824.0			810.9			34.1
Surface Technologies	172.8			82.7			—
Total segment operating profit (loss)	(532.7		)	1,354.1			766.1

Corporate items
Corporate expense ^(a)	(594.5		)	(359.2		)	(185.9		)
Interest income	121.4			140.8			85.3
Interest expense	(482.3		)	(456.0		)	(114.1		)
Total corporate items	(955.4		)	(674.4		)	(214.7		)
Income (loss) before income taxes ^(b)	$	(1,488.1	)	$	679.7		$	551.4


(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-related transaction expenses.


(b)	Includes amounts attributable to noncontrolling interests.

Segment assets



	December 31,
(In millions)	2018			2017
Segment assets
Subsea	$	11,037.8		$	12,944.4
Onshore/Offshore	4,355.2			4,604.8
Surface Technologies	2,825.6			2,453.3
Intercompany eliminations	(26.4		)	(24.3		)
Total segment assets	18,192.2			19,978.2
Corporate ^(a)	6,592.3			8,285.5
Total assets	$	24,784.5		$	28,263.7


(a)	Corporate includes cash, LIFO adjustments, deferred income tax balances, legal provisions, property, plant and equipment not associated with a specific segment, pension assets and the fair value of derivative financial instruments.

Geographic segment information

Geographic segment sales were identified based on the country where our products and services were delivered.



	Year Ended December 31,
(In millions)	2018		2017		2016
Revenue
Russia	$	2,773.3	$	4,894.2	$	283.3
Brazil	1,478.7		911.1		1,006.9
United States	1,275.8		1,534.7		1,033.7
Norway	1,202.6		971.2		574.4
Australia	926.6		953.9		776.6
United Kingdom	442.1		465.9		761.5
Angola	385.7		1,016.2		935.3
All other countries	4,068.1		4,309.7		3,827.9
Total revenue	$	12,552.9	$	15,056.9	$	9,199.6

Geographic segment long-lived assets represent property, plant and equipment, net.



	December 31,
(In millions)	2018		2017
Long-lived assets
United Kingdom	$	925.6	$	1,190.1
United States	589.9		567.1
Netherlands	360.5		574.2
Brazil	325.8		408.3
Norway	311.4		321.4
All other countries	746.6		810.4
Total long-lived assets	$	3,259.8	$	3,871.5

Other business segment information



	Capital Expenditures						Depreciation and Amortization						Research and Development Expense
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
(In millions)	2018		2017		2016		2018		2017		2016		2018		2017		2016
Subsea	$	223.2	$	179.1	$	286.9	$	440.4	$	507.2	$	256.8	$	145.2	$	169.2	$	75.4
Onshore/Offshore	7.6		16.2		26.0		38.2		41.1		43.9		29.7		31.4		30.0
Surface Technologies	111.9		35.4		—		66.6		63.6		—		14.3		12.3		—
Corporate	25.4		25.0		—		5.2		2.8		—		—		—		—
Total	$	368.1	$	255.7	$	312.9	$	550.4	$	614.7	$	300.7	$	189.2	$	212.9	$	105.4

During the years ended December 31, 2018, 2017 and 2016, revenue from JSC Yamal LNG exceeded 10% of our consolidated revenue. During the year ended December 31, 2016, revenue from Total exceeded 10% of our consolidated revenue.