REVENUE FROM SERVICES

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

NOTE 8. REVENUE FROM SERVICES

Deferred Costs on Contracts

In some instances, we incur third party costs that directly relate to the contract to fulfill the contract obligations. These fulfillment costs are capitalized and amortized consistent with how the related revenue is recognized.

As of June 30, 2018, we had deferred costs on contracts of $0.5 million. In the three months and six months ended June 30, 2018, we recognized $2.3 million and $6.3 million, respectively, of amortization related to these costs.

Deferred Revenue

Typically, our mobilization services are paid by the customer at the beginning of the contract while the revenue is recognized as control transfers to the customer, which can result in deferred revenue. Normally all other revenue is billed as work progresses, which generally will not result in significant deferred revenue except in those cases where a large mobilization is required for the contract. As of June 30, 2018, we had no deferred revenue. In the six months ended June 30, 2018, we recognized $1.5 million of revenue that was included in our deferred revenue balances at the beginning of the period.

Disaggregated Revenue

The following table disaggregates our revenue by major source:

	North America		South America		Total
Three months ended June 30, 2018:
Type of contract:
Turnkey	$	3,592	$	12,123	$	15,715
Term		1,168		—		1,168
Total	$	4,760	$	12,123	$	16,883

Six months ended June 30, 2018:
Type of contract:
Turnkey	$	26,689	$	21,567	$	48,256
Term		5,750		—		5,750
Total	$	32,439	$	21,567	$	54,006

Remaining Performance Obligation

As of June 30, 2018, we had $38.0 million of remaining performance obligations. We expect to recognize revenue of approximately 17% of these performance obligations in 2018 and the remaining approximately 83% in 2019.