Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

6. Revenue Recognition

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

	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Revenues:
Products:
Subsea products	$	55,427	$	48,480	$	146,123	$	144,229
Well construction		22,176		10,028		46,554		31,900
Total products	$	77,603	$	58,508	$	192,677	$	176,129
Services:
Subsea services	$	17,412	$	15,806	$	50,230	$	43,748
Well construction services		9,802		4,637		21,998		13,790
Total services	$	27,214	$	20,443	$	72,228	$	57,538

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		147,250
Transfers to Trade receivables, net		(137,423	)
Contract assets at September 30, 2023	$	148,419

Contract Liabilities (amounts shown in thousands)

Contract liabilities at December 31, 2022	$	6,824
Additions		12,614
Revenue recognized		(11,961	)
Contract liabilities at September 30, 2023	$	7,477

Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $92.3 million and $92.6 million at September 30, 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 September 30, 2023.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $41.8 million as of September 30, 2023. The Company expects to recognize revenue on approximately 98.6% of the remaining performance obligations over the next 12 months and the remaining 1.4% 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.