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PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS
We have funded and unfunded defined benefit pension plans, which provide defined benefits based on years of service and final average salary.
On December 31, 2017, we amended the U.S. retirement plans (the “Plans”) to freeze benefit accruals for all participants of the Plans as of December 31, 2017. After that date, participants in the Plans will no longer accrue any further benefits and participants’ benefits under the Plans will be determined based on credited service and eligible earnings as of December 31, 2017.
Foreign-based employees are eligible to participate in TechnipFMC-sponsored or government-sponsored benefit plans to which we contribute. Several of the foreign defined benefit pension plans sponsored by us provide for employee contributions; the remaining plans are noncontributory. The most significant of these plans are in the Netherlands, France, and the United Kingdom.
We have other post-retirement benefit plans covering substantially all of our U.S. unionized employees. The post-retirement health care plans are contributory; the post-retirement life insurance plans are noncontributory.
We are required to recognize the funded status of defined benefit post-retirement plans as an asset or liability in the consolidated balance sheet and recognize changes in that funded status in comprehensive income (loss) in the year in which the changes occur. Further, we are required to measure the plan’s assets and its obligations that determine its funded status as of the date of the consolidated balance sheet. We have applied this guidance to our domestic pension and other post-retirement benefit plans as well as for many of our non-U.S. plans, including those in the United Kingdom, Germany, France and Canada. Pension expense measured in compliance with GAAP for the other non-U.S. pension plans is not materially different from the locally reported pension expense.
In connection with the Spin-off, certain international plans were transferred to Technip Energies and reported as discontinued operations for the years ended December 31, 2020 and 2019.
The funded status of our U.S. Pension Plans, certain foreign pension plans and U.S. post-retirement health care and life insurance benefit plans, together with the associated balances recognized in our consolidated balance sheets as of December 31, 2021 and 2020, were as follows:
 PensionsOther
Post-retirement
Benefits
 2021202020212020
(In millions)U.S.Int’lU.S.Int’l  
Accumulated benefit obligation$653.6 $589.1 $684.7 $598.1 
Projected benefit obligation at January 1$684.7 $656.4 $669.7 $585.1 $9.4 $10.2 
Service cost— 10.0 — 10.4 — — 
Interest cost18.0 9.8 22.2 11.3 0.3 0.4 
Actuarial (gain) loss7.1 (32.5)53.9 30.4 (0.7)(0.2)
Settlements(22.6)— (25.6)(2.6)— — 
Foreign currency exchange rate changes— (11.9)— 23.6 (0.2)(0.6)
Plan participants’ contributions— 0.9 — 1.1 — — 
Benefits paid(33.6)(22.0)(35.5)(17.8)(0.4)(0.4)
Other— (9.1)— 14.9 — — 
Projected benefit obligation as of December 31653.6 601.6 684.7 656.4 8.4 9.4 
Fair value of plan assets at January 1483.7 591.5 520.0 521.2 — — 
Actual return on plan assets61.1 46.4 14.3 40.1 — — 
Company contributions28.9 19.6 — 27.1 — — 
Foreign currency exchange rate changes— (8.9)— 20.4 — — 
Settlements(22.6)— (19.6)(1.9)— — 
Plan participants’ contributions— 0.9 — 1.1 — — 
Benefits paid(33.6)(22.0)(31.0)(15.8)— — 
Other— — — (0.7)— — 
Fair value of plan assets as of December 31517.5 627.5 483.7 591.5 — — 
Funded status of the plans (liability) as of December 31$(136.1)$25.9 $(201.0)$(64.9)$(8.4)$(9.4)
 PensionsOther
Post-retirement
Benefits
 2021202020212020
(In millions)U.S.Int’lU.S.Int’l  
Current portion of accrued pension and other post-retirement benefits$(2.9)$(1.7)$(4.6)$(1.6)$(0.6)$(0.7)
Accrued pension and other post-retirement benefits, net of current portion(133.2)27.6 (196.4)(63.3)(7.8)(8.7)
Funded status as of December 31$(136.1)$25.9 $(201.0)$(64.9)$(8.4)$(9.4)
The following table summarizes the pre-tax amounts in accumulated other comprehensive (income) loss as of December 31, 2021 and 2020 that have not been recognized as components of net periodic benefit cost:
 PensionsOther
Post-retirement
Benefits
 2021202020212020
(In millions)U.S.Int’lU.S.Int’l  
Pre-tax amounts recognized in accumulated other comprehensive (income) loss
Unrecognized actuarial loss$156.6 $15.9 $198.4 $79.1 $0.4 $1.3 
Unrecognized prior service cost— 3.4 — 3.9 — — 
Accumulated other comprehensive (income) loss as of December 31$156.6 $19.3 $198.4 $83.0 $0.4 $1.3 
The following tables summarize the projected and accumulated benefit obligations and fair values of plan assets where the projected or accumulated benefit obligation exceeds the fair value of plan assets as of December 31, 2021 and 2020:
 PensionsOther
Post-retirement
Benefits
 2021202020212020
(In millions)U.S.Int’lU.S.Int’l  
Plans with underfunded or non-funded projected benefit obligation
Aggregate projected benefit obligation$652.2 $57.9 $684.7 $513.1 $8.4 $9.4 
Aggregate fair value of plan assets$516.0 $— $483.7 $442.7 $— $— 
 PensionsOther
Post-retirement
Benefits
 2021202020212020
(In millions)U.S.Int’lU.S.Int’l  
Plans with underfunded or non-funded accumulated benefit obligation
Aggregate accumulated benefit obligation$652.2 $46.7 $684.7 $50.8 $— $— 
Aggregate fair value of plan assets$516.0 $— $483.7 $— $— $— 
The following table summarizes the components of net periodic benefit cost (income) for the years ended December 31, 2021, 2020 and 2019:
 PensionsOther Post-retirement
Benefits
 202120202019202120202019
(In millions)U.S.Int’lU.S.Int’lU.S.Int’l   
Components of net periodic benefit cost (income)
Service cost$— $10.0 $— $10.4 $— $7.0 $— $— $— 
Interest cost18.0 9.8 22.2 11.3 25.6 13.7 0.3 0.4 0.5 
Expected return on plan assets(31.9)(25.0)(45.4)(36.5)(41.6)(31.3)— — — 
Settlement cost2.8 — 1.4 0.5 — — — — — 
Curtailment benefit— 0.4 — — — — — — — 
Amortization of net actuarial loss (gain)16.8 1.4 6.9 0.6 1.8 0.3 0.1 0.1 — 
Amortization of prior service cost (credit)— 0.5 — 0.6 — 0.4 — — — 
Net periodic benefit cost (income)$5.7 $(2.9)$(14.9)$(13.1)$(14.2)$(9.9)$0.4 $0.5 $0.5 
The following table summarizes changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019:
 PensionsOther Post-retirement
Benefits
 202120202019202120202019
(In millions)U.S.Int’lU.S.Int’lU.S.Int’l   
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss)
Net actuarial gain (loss) arising during period$(22.1)$(58.4)$(85.1)$(26.8)$(50.2)$(37.5)$— $— $— 
Prior service (cost) credit arising during period— 0.6 — — — (0.9)— — — 
Settlements and curtailments(2.8)(0.4)1.4 0.4 — — — — — 
Amortization of net actuarial loss (gain)(16.8)(1.4)6.9 0.6 1.8 0.3 — (0.1)— 
Amortization of prior service cost (credit)— (0.5)— 0.6 — 0.4 — — — 
Other— — — (7.5)— (1.5)(0.9)(0.6)1.5 
Total recognized in other comprehensive income (loss)$(41.7)$(60.1)$(76.8)$(32.7)$(48.4)$(39.2)$(0.9)$(0.7)$1.5 
Included in accumulated other comprehensive income (loss) as of December 31, 2021, are noncash, pre-tax charges which have not yet been recognized in net periodic benefit cost (income). The estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive income (loss) as a component of net period benefit cost (income), during the next fiscal year are as follows:
 PensionsOther
Post-retirement
Benefits
(In millions)U.S.Int’l 
Net actuarial losses$12.0 $— $— 
Prior service cost$— $0.4 $— 
Key assumptions - The following weighted-average assumptions were used to determine the benefit obligations: 
 PensionsOther
Post-retirement
Benefits
 2021202020212020
 U.S.Int’lU.S.Int’l  
Discount rate2.90 %1.99 %2.70 %1.48 %5.26 %3.63 %
Rate of compensation increaseN/A3.15 %N/A2.93 %4.00 %4.00 %
The following weighted-average assumptions were used to determine net periodic benefit cost: 
 PensionsOther
Post-retirement
Benefits
202120202019202120202019
 U.S.Int’lU.S.Int’lU.S.Int’l   
Discount rate2.70 %3.09 %3.40 %2.01 %4.40 %2.89 %4.46 %4.48 %5.32 %
Rate of compensation increaseN/A3.15 %N/A3.84 %N/A3.80 %4.00 %4.00 %4.00 %
Expected rate of return on plan assets6.75 %2.22 %7.75 %7.27 %8.65 %7.15 %N/AN/AN/A
Our estimate of expected rate of return on plan assets is primarily based on the historical performance of plan assets, current market conditions, our asset allocation and long-term growth expectations.
Plan assets - We actively monitor how the duration and the expected yield of the investments are matching the expected cash outflows arising from the pension obligations. We have not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. Our pension investment strategy emphasizes maximizing returns consistent with balancing risk. Excluding our international plans with insurance-based investments, 98.8% of our total pension plan assets represent the U.S. qualified plan and the U.K. plan. These plans are primarily invested in equity securities to maximize the long-term returns of the plans. The investment managers of these assets, including the hedge funds and limited partnerships, use Graham and Dodd fundamental investment analysis to select securities that have a margin of safety between the price of the security and the estimated value of the security. This value-oriented approach tends to mitigate the risk of a large equity allocation.
The following is a description of the valuation methodologies used for the pension plan assets. There have been no changes in the methodologies used as of December 31, 2021 and 2020.
•Cash is valued at cost, which approximates fair value.
•Equity securities are comprised of common stock and preferred stock. The fair values of equity securities are valued at the closing price reported on the active market on which the securities are traded.
•Fair values of registered investment companies and common/collective trusts are valued based on quoted market prices, which represent the net asset value (“NAV”) of shares held. Registered investment companies primarily include investments in emerging market bonds. Common/collective trusts primarily includes money market instruments with short maturities.
•Insurance contracts are valued at book value, which approximates fair value, and is calculated using the prior-year balance plus or minus investment returns and changes in cash flows.
•The fair values of hedge funds are valued using the NAV as determined by the administrator or custodian of the fund. The funds primarily invest in U.S. and international equities, debt securities and other hedge funds.
•The fair values of limited partnerships are valued using the NAV as determined by the administrator or custodian of the fund. The partnerships primarily invest in U.S. and international equities and debt securities.
•Real estate and other investments primarily consist of real estate investment trusts and other investments. These investments are measured at quoted market prices, which represent the NAV of the securities held in such funds at year end.
Our pension plan assets measured at fair value on a recurring basis are as follows as of December 31, 2021 and 2020. Refer to “Fair value measurements” in Note 1 to these consolidated financial statements for a description of the levels.
(In millions)U.S.International
December 31, 2021TotalLevel 1Level 2Level 3
Net Asset Value (a)
TotalLevel 1Level 2Level 3
Net Asset Value (a)
Cash and cash equivalents$43.4 $43.4 $— $— $— $40.5 $40.5 $— $— $— 
Equity securities
U.S. companies102.1 102.1 — — — 45.5 45.5 — — — 
International companies2.1 2.1 — — — 143.4 143.4 — — — 
Registered investment companies37.9 — — — 37.9 36.0 — — — 36.0 
Insurance contracts— — — — — — — — — — 
Hedge funds 138.8 — — — 138.8 291.0 — — — 291.0 
Limited partnerships 192.5 — — — 192.5 3.6 — — — 3.6 
Real estate and other investments0.6 0.6 — — — 69.7 69.7 — — — 
Total assets$517.4 $148.2 $— $— $369.2 $629.7 $299.1 $— $— $330.6 
December 31, 2020        
Cash and cash equivalents$38.1 $38.1 $— $— $— $66.3 $66.3 $— $— $— 
Equity securities
U.S. companies83.3 83.3 — — — 96.3 96.3 — — — 
International companies1.1 1.1 — — — 208.4 208.4 — — — 
Registered investment companies38.4 — — — 38.4 68.2 — — — 68.2 
Hedge funds160.9 — — — 160.9 98.3 — — — 98.3 
Limited partnerships 160.9 — — — 160.9 14.5 — — — 14.5 
Real estate and other investments1.0 1.0 — — — 39.5 39.5 — — — 
Total assets$483.7 $123.5 $— $— $360.2 $591.5 $410.5 $— $— $181.0 
(a)Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.
Contributions - We expect to contribute approximately $12.3 million to our international pension plans, representing primarily the U.K. qualified pension plans in 2022. We do not expect to make any contributions to our U.S. Qualified Pension Plan and our U.S. Non-Qualified Defined Benefit Pension Plan in 2022. All of the contributions are expected to be in the form of cash. In 2021 and 2020, we contributed $34.3 million and $27.1 million to all pension plans, respectively.
Estimated future benefit payments - The following table summarizes expected benefit payments from our various pension and post-retirement benefit plans through 2031. Actual benefit payments may differ from expected benefit payments.
 PensionsOther
Post-retirement
Benefits
(In millions)U.S.International 
2022$33.3 $22.0 $0.6 
202331.4 22.4 0.6 
202431.7 23.8 0.6 
202532.3 24.4 0.5 
202632.7 25.6 0.5 
2027-2031165.9 149.9 2.3 
Savings plans - The TechnipFMC Retirement Savings Plan (“Qualified Plan”), a qualified salary reduction plan under Section 401(k) of the Internal Revenue Code, is a defined contribution plan. Additionally, we have a non-qualified deferred compensation plan, the Non-Qualified Plan, which allows certain highly compensated employees the option to defer the receipt of a portion of their salary. We match a portion of the participants’ deferrals to both plans. Both plans relate to FMC Technologies, Inc.
Participants in the Non-Qualified Plan earn a return based on hypothetical investments in the same options as our 401(k) plan. Changes in the market value of these participant investments are reflected as an adjustment to the deferred compensation liability with an offset to other income (expense), net. As of December 31, 2021 and 2020, our liability for the Non-Qualified Plan was $24.1 million and $22.8 million, respectively, and was recorded in other liabilities in our consolidated balance sheets. We hedge the financial impact of changes in the participants’ hypothetical investments by purchasing the investments that the participants have chosen. Changes in the fair value of these investments are recognized as an offset to other income (expense), net in our consolidated statements of income. As of December 31, 2021 and 2020, we had investments for the Non-Qualified Plan totaling $24.1 million and $22.8 million at fair market value, respectively.
During the years ended December 31, 2021, and 2020 we recognized expense of $21.5 million and $21.3 million, respectively for matching contributions to these plans in 2021 and 2020, respectively. Additionally, during the years ended December 31, 2021 and 2020, we recognized expense of $9.0 million and $8.3 million, respectively, for non-elective contributions.