Basis Of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Basis Of Presentation and Significant Accounting Policies

BASIS OF PRESENTATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC” or the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2018.

Our accounting policies are in accordance with GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments as well as adjustments to our financial position pursuant to a business combination, necessary for a fair statement of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2019.

Reclassifications – Certain prior-year amounts have been reclassified to conform to the current year’s presentation.

Revision of Prior Period Financial Statements - In connection with the preparation of the condensed consolidated financial statements for the three and six months ended June 30, 2019, we identified errors in our previously issued financial statements related to the classification between service revenue, product revenue and the related cost of sales. The correction had no effect on the reported total revenues, consolidated net income (loss) or stockholders’ equity for any periods previously presented.

In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the errors and, based on an analysis of quantitative and qualitative factors, determined that the related impact was not material to our consolidated financial statements for any prior annual or interim period. Therefore, amendments of previously filed reports are not required.

In accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections, we corrected the errors for the three and six months ended June 30, 2018 by revising the condensed consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings.

The effects of the revision on our condensed consolidated statements of income for the three and six months ended June 30, 2018 are as follows:



	Three Months Ended							Six Months Ended
	June 30, 2018							June 30, 2018
(In millions, except per share data)	As Previously Reported		Adjustments			As Revised		As Previously Reported		Adjustments			As Revised
Revenue
Service revenue	$	2,243.9	$	(177.9	)	$	2,066.0	$	4,671.3	$	(331.3	)	$	4,340.0
Product revenue	663.7		177.9			841.6		1,312.1		331.3			1,643.4
Total revenue	2,960.9		—			2,960.9		6,086.1		—			6,086.1

Costs and expenses
Cost of service revenue	1,846.9		(45.6		)	1,801.3		3,799.4		(171.2		)	3,628.2
Cost of product revenue	544.1		45.6			589.7		1,078.9		171.2			1,250.1
Total costs and expenses	2,777.6		—			2,777.6		5,663.5		—			5,663.5

Net income attributable to TechnipFMC plc	$	105.7	$	—		$	105.7	$	200.8	$	—		$	200.8

Earnings per share attributable to TechnipFMC plc (Note 7)
Basic	$	0.23	$	—		$	0.23	$	0.43	$	—		$	0.43
Diluted	$	0.23	$	—		$	0.23	$	0.43	$	—		$	0.43

Weighted average shares outstanding (Note 7)
Basic	461.4		—			461.4		462.8		—			462.8
Diluted	463.3		—			463.3		464.2		—			464.2

Leases – The majority of our leases are operating leases. We account for leases in accordance with ASC Topic 842, Leases, which we adopted on January 1, 2019 using the modified retrospective method. Refer to Note 4 for further discussion of the adoption, including the impact on our 2019 financial statements.