Impairment, Restructuring and Other Expense

12 Months Ended

Dec. 31, 2019

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)	2019			2018			2017
Impairment expense
Subsea	$	1,798.6		$	1,784.2		$	11.5
Onshore/Offshore	—			—			—
Surface Technologies	685.5			4.5			10.2
Corporate and other	—			3.9			12.6
Total impairment expense	2,484.1			1,792.6			34.3
Restructuring and other expense
Subsea	$	(46.4	)	$	17.7		$	88.4
Onshore/Offshore	17.0			(3.4		)	27.0
Surface Technologies	18.7			9.3			9.0
Corporate and other	17.4			15.0			32.8
Total restructuring and other expense	6.7			38.6			157.2
Total impairment, restructuring and other expense	$	2,490.8		$	1,831.2		$	191.5

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 25 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 and Surface Technologies segments exceeded their fair value. During the year ended December 31, 2019, we recorded $2,484.1 million of impairment charges. These charges included the impairment of goodwill of $1,321.9 million and $666.8 million in our Subsea and Surface Technologies segments, respectively. These charges also included $495.4 million of asset impairments, including $153.8 million related to vessels and $168.9 million related to our flexible pipe and umbilical manufacturing facilities.

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.

Restructuring and other - In December 2019, we initiated a company-wide reduction in workforce intended to reduce costs and better align our workforce with current and anticipated activity levels, which resulted in the recognition of severance costs relating to termination benefits and other restructuring charges. The initial plan included a workforce reduction of approximately 1,600 employees. Restructuring charges related to this global initiative was $32.4 million

On December 30, 2019, the Company completed the acquisition of the remaining 50% of TOP CV, which resulted in a net loss of $0.9 million that was recorded in the Subsea segment. The net loss is comprised of an impairment charge of $84.2 million included within impairment and other charges and a bargain purchase gain of $83.3 million included within restructuring and other charges.

During 2018 and 2017 we initiated cost cutting measures resulting in the recognition of severance costs related to employee termination benefits, expenses related to the consolidation of our facilities and other non-recurring charges.