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Impairment, Restructuring and Other Expense
12 Months Ended
Dec. 31, 2018
Restructuring and Related Activities [Abstract]  
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSE
IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSE
Impairment, restructuring and other expense were as follows:
 
Year Ended December 31,
(In millions)
2018
 
2017
 
2016
Impairment expense
 
 
 
 
 
Subsea
$
1,784.2

 
$
11.5

 
$
23.0

Onshore/Offshore

 

 
14.6

Surface Technologies
4.5

 
10.2

 

Corporate and other
3.9

 
12.6

 
0.6

Total impairment expense
1,792.6

 
34.3

 
38.2

 
 
 
 
 
 
Restructuring and other expense
 
 
 
 
 
Subsea
$
17.7

 
$
88.4

 
$
58.7

Onshore/Offshore
(3.4
)
 
27.0

 
214.4

Surface Technologies
9.3

 
9.0

 

Corporate and other
15.0

 
32.8

 
31.7

Total restructuring and other expense
38.6

 
157.2

 
304.8

Total impairment, restructuring and other expense
$
1,831.2

 
$
191.5

 
$
343.0


Asset impairments - We conduct impairment tests on long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition over the asset’s remaining useful life. Our review of recoverability of the carrying value of our assets considers several assumptions including the intended use and service potential of the asset. Refer to Note 22 to these consolidated financial statements for a discussion of the method used to determine the fair value of these assets.
The prolonged downturn in the energy market and its corresponding impact on our business outlook led us to conclude the carrying amount of certain of our assets in our Subsea segment exceeded their fair value. During the year ended December 31, 2018, we recorded $1,784.2 million of impairment charges in our Subsea segment. These charges included impairment of goodwill and vessels of $1,383.0 million and $372.9 million, respectively.
During the year ended December 31, 2017, our impairment expense was primarily related to leasehold improvements, decommissioning vacant buildings and other long-lived assets.
During the year ended December 31, 2016, our impairment expense was primarily associated with the restructuring plan discussed below.
Restructuring and other - During 2018 and 2017 we initiated further cost cutting measures that have resulted in restructuring expense primarily related to termination of lease contracts.
In the year ended December 31, 2016, as part of our restructuring plan, we divested and deconsolidated our wholly owned subsidiaries Technip Germany Holding GmBH and Technip Germany GmBH.
In July 2015, as a result of the decline in crude oil prices and its effect on the demand for products and services in the oilfield services industry worldwide, we initiated a company-wide reduction in workforce and facility consolidation (the “July 2015 Plan”) intended to reduce costs and better align our workforce with current and anticipated activity levels, which resulted in the continued recognition of severance costs relating to termination benefits and other restructuring charges. The initial plan included a workforce reduction of approximately 6,000 employees.
A significant part of the restructuring plan was focused on the Onshore/Offshore segment. In this segment, we reduced our presence in North America, Latin America, Asia and Europe. In the Subsea segment, we reduced our presence in the North Sea.