BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2024

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 Chair and Chief Executive Officer, as our chief operating decision maker, reviews and evaluates operating performance and allocates resources. We operate under two reporting segments, Subsea and Surface Technologies:

•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 oil and natural gas.

•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 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.

The decline in total assets of $567.9 million is mainly attributable to the sale of MSB within the Surface Technologies segment of $152.1 million of assets held for sale. Other changes are mainly related to decline in cash of $254.9 million within the corporate assets and the remaining $160.9 million changes in working capital, and foreign exchange within both the Subsea and Surface Technologies segments.

Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in segment operating profit. The following items have been excluded in computing segment operating profit: corporate staff expense, foreign exchange gains (losses), net interest income (expense) associated with corporate debt facilities and income taxes.

Segment revenue and segment operating profit were as follows:

	Three Months Ended
	March 31,
(In millions)	2024		2023
Segment revenue
Subsea	$	1,734.8	$	1,387.6
Surface Technologies	307.2		329.8
Total segment revenue	$	2,042.0	$	1,717.4
Segment operating profit
Subsea	$	156.6	$	66.8
Surface Technologies(c)	103.4		22.4
Total segment operating profit	$	260.0	$	89.2
Corporate items
Corporate expense(a)	(32.2)		(27.4)
Net interest expense	(12.7)		(18.7)
Foreign exchange gains (losses)	(4.5)		2.1
Total corporate items	(49.4)		(44.0)
Income before income taxes(b)	$	210.6	$	45.2

(a)Corporate expense primarily includes corporate staff expenses, share-based compensation expenses, and other employee benefits.

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

(c)Includes gain on disposal of MSB, see Note 3 for additional details.