Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

6. Revenue Recognition

Revenues from contracts with customers consisted of the following:

	Twelve Months Ended
	December 31,
	2023		2022		2021
	(In thousands)
Revenues:
Products:
Subsea products	$	198,321	$	194,237	$	168,361
Well construction		72,700		46,525		44,902
Total products		271,021		240,762		213,263
Services:
Subsea services		72,241		60,937		58,086
Well construction services		33,439		18,192		16,057
Total services		105,680		79,129		74,143
Leasing:
Subsea leasing		29,023		33,694		27,970
Well Construction leasing		18,336		8,339		7,072
Total leasing (1)		47,359		42,033		35,042
Total revenues	$	424,060	$	361,924	$	322,448

(1) As of December 31, 2023, revenues from contracts with customers includes leasing revenues. Leasing revenue was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022.

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract Assets at December 31, 2022	$	144,428
Additions		417,248
Transfers to Accounts Receivable		(413,247	)
Contract Assets at December 31, 2023	$	148,429

Contract Liabilities (amounts shown in thousands)

Contract Liabilities at December 31, 2022	$	8,020
Additions		6,364
Revenue Recognized		(6,801	)
Contract Liabilities at December 31, 2023	$	7,583

Contract asset receivables were $148.4 million and $144.4 million for the years ended December 31, 2023 and 2022, respectively. Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method which were approximately $90.2 million and $92.6 million at December 31, 2023 and 2022, respectively. Unbilled contract assets are transferred to the trade receivables, net, when the rights become unconditional. The contract liabilities primarily relate to advance payments from customers. As of December 31, 2023, contract assets and liabilities includes leasing. Leasing was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022.

Obligations for returns and refunds were considered immaterial as of December 31, 2023 and 2022.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $43.0 million as of December 31, 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 new revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less.