LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

Lessee Arrangements

We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. Substantially all our leases are classified as operating leases.

The following table is a summary of the Company’s components of net lease cost for the years ended December 31, 2023, 2022, and 2021:

	Year Ended December 31,
(In millions)	2023		2022		2021
Operating and Finance lease costs	$	201.9	$	177.9	$	175.9
Short-term lease costs	45.7		14.0		5.2
Less: sublease income (1)	5.7		3.6		2.4
Net lease cost	$	241.9	$	188.3	$	178.7

(1) TechnipFMC currently subleases certain of its leased real estate and vessels to third parties.

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021 is as follows:

	Year Ended December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	197.2	$	171.0	$	176.5
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	67.1	$	279.4	$	114.9
Finance leases	$	48.8	$	8.6	$	24.6

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows:

	December 31,
(In millions, except lease term and discount rate)	2023		2022
Weighted average remaining lease term
Operating leases	11.4 years		11.5 years
Finance leases	2.7 years		0.6 years
Weighted average discount rate
Operating leases	6.0	%	5.8	%
Finance leases	15.04	%	3.2	%

Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows:

(In millions)	Maturity of Operating Lease Liabilities		Maturity of Finance Lease Liabilities
2024	$	180.7	$	19.6
2025	133.4		120.1
2026	101.4		15.2
2027	89.5		11.0
2028	76.5		8.7
Thereafter	584.6		—
Total lease payments	1,166.1		174.6
Less: Imputed interest	362.5		76.3
Total lease liabilities (a)	$	803.6	$	98.3

(a) Includes the current portion of $146.4 million.

Lessor Arrangements

The majority of our leases are operating leases, as opposed to sales-type or direct financing leases. Our operating lease revenue, including variable revenue, was $273.5 million, $215.1 million, and $158.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the term of the leases, we expect to receive committed revenues of $12.8 million in total undiscounted cash flows, of which $3.0 million is expected to be received in 2024 and $3.0 million is expected to be received in 2025.

LEASES

LEASES

Lessee Arrangements

We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. Substantially all our leases are classified as operating leases.

The following table is a summary of the Company’s components of net lease cost for the years ended December 31, 2023, 2022, and 2021:

	Year Ended December 31,
(In millions)	2023		2022		2021
Operating and Finance lease costs	$	201.9	$	177.9	$	175.9
Short-term lease costs	45.7		14.0		5.2
Less: sublease income (1)	5.7		3.6		2.4
Net lease cost	$	241.9	$	188.3	$	178.7

(1) TechnipFMC currently subleases certain of its leased real estate and vessels to third parties.

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021 is as follows:

	Year Ended December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	197.2	$	171.0	$	176.5
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	67.1	$	279.4	$	114.9
Finance leases	$	48.8	$	8.6	$	24.6

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows:

	December 31,
(In millions, except lease term and discount rate)	2023		2022
Weighted average remaining lease term
Operating leases	11.4 years		11.5 years
Finance leases	2.7 years		0.6 years
Weighted average discount rate
Operating leases	6.0	%	5.8	%
Finance leases	15.04	%	3.2	%

Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows:

(In millions)	Maturity of Operating Lease Liabilities		Maturity of Finance Lease Liabilities
2024	$	180.7	$	19.6
2025	133.4		120.1
2026	101.4		15.2
2027	89.5		11.0
2028	76.5		8.7
Thereafter	584.6		—
Total lease payments	1,166.1		174.6
Less: Imputed interest	362.5		76.3
Total lease liabilities (a)	$	803.6	$	98.3

(a) Includes the current portion of $146.4 million.

Lessor Arrangements

The majority of our leases are operating leases, as opposed to sales-type or direct financing leases. Our operating lease revenue, including variable revenue, was $273.5 million, $215.1 million, and $158.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the term of the leases, we expect to receive committed revenues of $12.8 million in total undiscounted cash flows, of which $3.0 million is expected to be received in 2024 and $3.0 million is expected to be received in 2025

LEASES

LEASES

Lessee Arrangements

We lease real estate, including land, buildings and warehouses, machinery/equipment, vessels, vehicles, and various types of manufacturing and data processing equipment, from a lessee perspective. Leases of real estate generally provide for payment of property taxes, insurance, and repairs by us. Substantially all our leases are classified as operating leases.

The following table is a summary of the Company’s components of net lease cost for the years ended December 31, 2023, 2022, and 2021:

	Year Ended December 31,
(In millions)	2023		2022		2021
Operating and Finance lease costs	$	201.9	$	177.9	$	175.9
Short-term lease costs	45.7		14.0		5.2
Less: sublease income (1)	5.7		3.6		2.4
Net lease cost	$	241.9	$	188.3	$	178.7

(1) TechnipFMC currently subleases certain of its leased real estate and vessels to third parties.

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021 is as follows:

	Year Ended December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	197.2	$	171.0	$	176.5
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	67.1	$	279.4	$	114.9
Finance leases	$	48.8	$	8.6	$	24.6

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows:

	December 31,
(In millions, except lease term and discount rate)	2023		2022
Weighted average remaining lease term
Operating leases	11.4 years		11.5 years
Finance leases	2.7 years		0.6 years
Weighted average discount rate
Operating leases	6.0	%	5.8	%
Finance leases	15.04	%	3.2	%

Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows:

(In millions)	Maturity of Operating Lease Liabilities		Maturity of Finance Lease Liabilities
2024	$	180.7	$	19.6
2025	133.4		120.1
2026	101.4		15.2
2027	89.5		11.0
2028	76.5		8.7
Thereafter	584.6		—
Total lease payments	1,166.1		174.6
Less: Imputed interest	362.5		76.3
Total lease liabilities (a)	$	803.6	$	98.3

(a) Includes the current portion of $146.4 million.

Lessor Arrangements

The majority of our leases are operating leases, as opposed to sales-type or direct financing leases. Our operating lease revenue, including variable revenue, was $273.5 million, $215.1 million, and $158.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the term of the leases, we expect to receive committed revenues of $12.8 million in total undiscounted cash flows, of which $3.0 million is expected to be received in 2024 and $3.0 million is expected to be received in 2025