Equity Method Investments

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS

The equity method of accounting is used to account for investments in unconsolidated affiliates where we can have the ability to exert significant influence over the affiliates operating and financial policies.

For certain construction joint ventures, we use the proportionate consolidation method, whereby our proportionate share of each entity’s assets, liabilities, revenues, and expenses are included in the appropriate classifications in the accompanying consolidated financial statements. None of our proportionate consolidation investments, individually or in the aggregate, are significant to our consolidated results for 2019, 2018, or 2017.

Our equity investments were as follows as of December 31, 2019 and 2018:

	December 31, 2019
	Percentage Owned		Carrying Value (in millions)
Dofcon Brasil AS	50.0	%	167.4
Serimax Holdings SAS	20.0	%	21.5
Magma Global Limited	25.0	%	50.2
Other			61.3
Investments in equity affiliates			$	300.4

	December 31, 2018
	Percentage Owned		Carrying Value (in millions)
Technip Odebrecht PLSV CV (“TOP CV”)	50.0	%	$	136.1
Dofcon Brasil AS	50.0	%	126.2
Serimax Holdings SAS	20.0	%	23.2
Magma Global Limited	25.0	%	49.8
Other			59.2
Investments in equity affiliates			$	394.5

Our major equity method investments are as follows:

TOP CV - was an affiliated company in the form of a joint venture between Technip SA and Ocyan SA (formerly known as Odebrecht). Technip Odebrecht was formed in 2011 when awarded a contract to provide pipeline installation ships to state-controlled Petrobras for its work in oil and gas fields offshore Brazil. On December 30, 2019, we completed the acquisition of the remaining 50% interest in TOP CV. Prior to the acquisition, we accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment. Subsequent to this transaction we recorded the results in our consolidated financial information.

Dofcon Brasil AS (“Dofcon”) - is an affiliated company in the form of a joint venture between Technip SA and DOF Subsea and was founded in 2006. Dofcon provides Pipe-Laying Support Vessels (PLSVs) for work in oil and gas fields offshore Brazil. Dofcon is considered a VIE because it does not have sufficient equity to finance its activities without additional subordinated financial support from other parties. We are not the primary beneficiary of the VIE. As such, we have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment.

Serimax Holdings SAS (“Serimax”) - is an affiliated company in the form of a joint venture between Technip SA and Vallourec SA and was founded in 2016. Serimax is headquartered in Paris, France and provides rigid pipes welding services for work in oil and gas fields around the world. We have accounted for our 20% investment using the equity method of accounting with results reported in our Subsea segment.

Magma Global Limited (“Magma Global”) - is an affiliated company in the form of a collaborative agreement signed in 2018 between Technip-Coflexip UK Holdings Limited and Magma Global to develop hybrid flexible pipe for use in offshore applications. As part of the collaboration, TechnipFMC holds a minority stake. We have accounted for our 25% investment using the equity method investment of accounting with results reported in our Subsea segment.

Our income from equity affiliates included in each of our reporting segments was as follows:

	Year Ended December 31,
(In millions)	2019		2018		2017
Subsea	$	59.8	$	80.9	$	55.3
Onshore/Offshore	3.1		33.4		0.3
Income from equity affiliates	$	62.9	$	114.3	$	55.6