Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

Revenues from contracts with customers (excludes leasing) consisted of the following:

	Three months ended
	March 31,
	2023		2022
	(In thousands)
Revenues:
Products:
Subsea products	$	46,117	$	46,304
Well construction		13,129		9,338
Total products		59,246		55,642
Services:
Subsea services		16,487		13,157
Well construction services		4,794		4,342
Total services		21,281		17,499

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract Assets at December 31, 2022	$	138,592
Additions		180,755
Transfers to Trade Receivables, Net		(176,410	)
Contract Assets at March 31, 2023	$	142,937

Contract Liabilities (amounts shown in thousands)

Contract Liabilities at December 31, 2022	$	6,824
Additions		5,065
Revenue Recognized		(6,107	)
Contract Liabilities at March 31, 2023	$	5,782

Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $101.9 million and $92.6 million at March 31, 2023 and December 31, 2022, respectively. Unbilled contract assets are transferred to trade receivables, net, when the rights become unconditional. Contract liabilities primarily relate to advance payments from customers.

Obligations for returns and refunds were considered immaterial as of March 31, 2023.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $69.3 million as of March 31, 2023. The Company expects to recognize revenue on approximately 77.5% of the remaining performance obligations over the next 12 months and the remaining 22.5% thereafter.

The Company applies the practical expedient available under the revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less.