Goodwill and Intangible Assets Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

During the first quarter of 2020, triggering events were identified which led to performing interim goodwill impairment testing in our Subsea and Surface Technologies reporting units as of March 31, 2020. These events included the COVID-19 pandemic breakout, commodity price declines, and a significant decrease in our market capitalization as well as those of our peers and customers.

The fair value for our reporting units was valued using a market approach. An appropriate control premium was considered for each of the reporting units and applied to the output of the market approach.

The impairment assessment resulted in a conclusion that goodwill in the Subsea and Surface Technologies segments was impaired by $2,747.5 million and $335.9 million, respectively. The impairment assessment also concluded the fair value of the Technip Energies reporting unit was in excess of its carrying amount.

The carrying amount of goodwill by business segment was as follows:

(In millions)	Subsea		Technip Energies		Surface		Total
December 31, 2019	$	2,814.1	$	2,423.6	$	360.6	$	5,598.3
Transfers (a)	(21.2)		46.1		(24.9)		—
Impairments	(2,747.5)		—		(335.9)		(3,083.4)
Translation	(45.4)		1.0		0.2		(44.2)
June 30, 2020	$	—	$	2,470.7	$	—	$	2,470.7

(a) Beginning in the first quarter of 2020, Technip Energies includes our Loading Systems business that was previously reported in the Surface Technologies segment and our process automation business, Cybernetix, that was previously reported in the Subsea segment. See Note 6 for further details.