Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

5. Revenue Recognition

Revenues from contracts with customers consisted of the following:

	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
	(In thousands)
Revenues:
Products:
Subsea products	$	42,681	$	44,579	$	78,013	$	90,696
Well construction		31,649		11,249		60,879		24,378
Total products	$	74,330	$	55,828	$	138,892	$	115,074
Services:
Subsea services	$	19,292	$	16,333	$	36,016	$	32,818
Well construction services		13,422		7,400		26,885		12,196
Total services	$	32,714	$	23,733	$	62,901	$	45,014
Total	$	107,044	$	79,561	$	201,793	$	160,088

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract assets at December 31, 2023	$	144,191
Additions		198,055
Transfers to Trade receivables, net		(213,176	)
Contract assets at June 30, 2024	$	129,070

Contract Liabilities (amounts shown in thousands)

Contract liabilities at December 31, 2023	$	7,583
Additions		4,114
Revenue recognized		(3,737	)
Contract liabilities at June 30, 2024	$	7,960

Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $79.2 million and $90.2 million at June 30, 2024 and December 31, 2023, respectively. Unbilled contract assets are transferred to trade receivables, net, when the right to bill becomes unconditional. Contract liabilities primarily relate to advance payments from customers.

Obligations for returns and refunds were considered immaterial as of June 30, 2024.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $40.2 million as of June 30, 2024. The Company expects to recognize revenue on approximately 97.7% of the remaining performance obligations over the next 12 months and the remaining 2.3% 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.