Business Segments

9 Months Ended

Sep. 30, 2020

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 Chairman and 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 - designs and manufactures 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.

•Technip Energies - offers extensive experience, knowledge and unique project management capabilities in onshore and offshore hydrocarbon infrastructure businesses; it also combines its leading engineering and construction capabilities with its technological know-how, products and services to develop new solutions that will support the world’s energy transition.

•Surface Technologies - designs and manufactures products and 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.

Beginning in the first quarter of 2020, in anticipation of our separation transaction, we renamed our Onshore/Offshore segment to Technip Energies, which 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. Prior year information has not been restated due to these businesses not being material.

Segment operating profit (loss) 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 (loss): corporate staff expense, foreign exchange gains (losses), 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				Nine Months Ended
	September 30,				September 30,
(In millions)	2020		2019		2020		2019
Segment revenue
Subsea	$	1,501.8	$	1,342.2	$	4,133.4	$	4,036.2
Technip Energies	1,608.2		1,596.3		4,694.2		4,436.4
Surface Technologies	225.7		396.6		796.9		1,209.7
Total revenue	$	3,335.7	$	3,335.1	$	9,624.5	$	9,682.3
Segment operating profit (loss)
Subsea	$	20.3	$	(79.6)	$	(2,806.0)	$	65.0
Technip Energies	129.5		284.6		512.0		714.3
Surface Technologies	(7.0)		6.1		(444.4)		42.1
Total segment operating profit (loss)	$	142.8	$	211.1	$	(2,738.4)	$	821.4
Corporate items
Impairment, restructuring and other expenses	(3.8)		(3.2)		(9.3)		(13.5)
Separation costs	—		(9.4)		(27.1)		(9.4)
Merger transaction costs	—		(6.2)		—		(31.2)
Legal expenses	—		0.6		—		(54.6)
Other corporate expenses(a)	(23.9)		(57.4)		(89.3)		(169.9)
Corporate expense	(27.7)		(75.6)		(125.7)		(278.6)
Net interest expense	(91.8)		(116.5)		(238.5)		(345.3)
Foreign exchange gains (losses)	5.6		(53.2)		(43.5)		(82.8)
Total corporate items	(113.9)		(245.3)		(407.7)		(706.7)
Income (loss) before income taxes(b)	$	28.9	$	(34.2)	$	(3,146.1)	$	114.7

(a)Other corporate expenses primarily include corporate staff expenses, share-based compensation expenses, and other employee benefits.

(b)Includes amounts attributable to non-controlling interests.

Segment assets were as follows:

(In millions)	September 30, 2020		December 31, 2019
Segment assets
Subsea	$	7,218.6	$	10,824.2
Technip Energies	4,696.7		4,448.8
Surface Technologies	1,450.5		2,246.4
Total segment assets	13,365.8		17,519.4
Corporate (a)	5,545.4		5,999.4
Total assets	$	18,911.2	$	23,518.8

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