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Business Segments
 6 Months Ended
Jun. 30, 2019
Segment Reporting, Measurement Disclosures [Abstract]  
Business Segments 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.
We report the results of operations in the following segments:
•
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)
2019
 
2018
 
2019
 
2018
Segment revenue
 
 
 
 
 
 
 
Subsea
$
1,508.7

 
$
1,217.4

 
$
2,694.0

 
$
2,397.6

Onshore/Offshore
1,505.0

 
1,342.4

 
2,840.1

 
2,915.8

Surface Technologies
420.5

 
401.1

 
813.1

 
772.7

Total revenue
$
3,434.2

 
$
2,960.9

 
$
6,347.2

 
$
6,086.1

 
 
 
 
 
 
 
 
Segment operating profit
 
 
 
 
 
 
 
Subsea
$
94.6

 
$
75.9

 
$
144.5

 
$
130.3

Onshore/Offshore
274.0

 
171.3

 
429.7

 
374.2

Surface Technologies
25.5

 
51.5

 
36.0

 
82.1

Total segment operating profit
394.1

 
298.7

 
610.2

 
586.6

 
 
 
 
 
 
 
 
Corporate items
 
 
 
 
 
 
 
Corporate expense(a)
(138.9
)
 
(73.0
)
 
(232.5
)
 
(132.8
)
Net interest expense
(140.6
)
 
(50.9
)
 
(228.8
)
 
(138.3
)
Total corporate items
(279.5
)
 
(123.9
)
 
(461.3
)
 
(271.1
)
Income before income taxes(b)
$
114.6

 
$
174.8

 
$
148.9

 
$
315.5


(a)
Corporate expense primarily includes corporate staff expenses, legal reserve, share-based compensation expenses, other employee benefits, certain foreign exchange gains and losses, and merger transaction and integration expenses.
(b)
Includes amounts attributable to noncontrolling interests.
Segment assets were as follows:
(In millions)
June 30,
2019
 
December 31, 2018
Segment assets
 
 
 
Subsea
$
12,237.1

 
$
11,037.8

Onshore/Offshore
4,311.8

 
4,355.2

Surface Technologies
2,988.2

 
2,825.6

Intercompany eliminations
(29.7
)
 
(26.4
)
Total segment assets
19,507.4

 
18,192.2

Corporate (a)
6,005.3

 
6,592.3

Total assets
$
25,512.7

 
$
24,784.5

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