Revenue

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Revenue by Category

We recognized revenue, disaggregated by business segment, geographical region, and timing of transfer of goods or services, as follows:

			Three Months Ended						Six Months Ended
(in thousands)			Jun 30, 2019		Jun 30, 2018		Mar 31, 2019		Jun 30, 2019		Jun 30, 2018
Business Segment:
	Energy Services and Products
		Remotely Operated Vehicles	$	120,363	$	107,426	$	100,346	$	220,709	$	193,020
		Subsea Products	138,910		121,704		128,844		267,754		248,392
		Subsea Projects	75,104		78,036		89,728		164,832		134,896
		Asset Integrity	61,156		67,422		60,689		121,845		128,710
	Total Energy Services and Products		395,533		374,588		379,607		775,140		705,018
	Advanced Technologies		100,248		104,086		114,279		214,527		190,069
		Total	$	495,781	$	478,674	$	493,886	$	989,667	$	895,087

			Three Months Ended						Six Months Ended
(in thousands)			Jun 30, 2019		Jun 30, 2018		Mar 31, 2019		Jun 30, 2019		Jun 30, 2018
Geographic Operating Areas:
	Foreign:
		Africa	$	61,390	$	61,966	$	87,106	$	148,496	$	117,053
		United Kingdom	65,058		50,999		53,298		118,356		96,318
		Norway	60,252		51,827		42,466		102,718		90,869
		Asia and Australia	43,123		43,448		41,426		84,549		82,394
		Brazil	23,658		13,461		17,763		41,421		32,289
		Other	28,334		14,811		21,222		49,556		34,450
	Total Foreign		281,815		236,512		263,281		545,096		453,373
	United States		213,966		242,162		230,605		444,571		441,714
Total			$	495,781	$	478,674	$	493,886	$	989,667	$	895,087

Timing of Transfer of Goods or Services:
	Revenue recognized over time	$	455,937	$	437,035	$	461,245	$	917,182	$	811,702
	Revenue recognized at a point in time	39,844		41,639		32,641		72,485		83,385
Total		$	495,781	$	478,674	$	493,886	$	989,667	$	895,087

Contract Balances

Our contracts with milestone payments have, in the aggregate, a significant impact on the contract asset and the contract liability balances. Milestones are contractually agreed with customers and relate to significant events across the contract lives. Some milestones are achieved before revenue is recognized, resulting in a contract liability, other milestones are achieved after revenue is recognized resulting in a contract asset.

Our payment terms consist of those services billed regularly as provided and those products delivered at a point in time, which are invoiced after the performance obligation is satisfied. Our product and service contracts with milestone payments due at agreed progress points during the contract are invoiced when those milestones are reached, which may differ from the timing of revenue recognition.

During the six months ended June 30, 2019, contract assets decreased by $59 million from its opening balance due to billings of approximately $1.0 billion, which exceeded revenue earned of $961 million. Contract liabilities decreased $12 million from its opening balance, due to revenue recognition of $29 million less deferrals of milestone payments that totaled $17 million. There were no cancellations, impairments or other significant impacts in the period that relate to other categories of explanation.

Performance Obligations

As of June 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $405 million. In arriving at this value, we have used two expedients available to us and are not disclosing amounts in relation to performance obligations: (1) that are part of contracts with an original expected duration of one year or less; or (2) on contracts where we recognize revenue in line with the billing. Of this amount, we expect to recognize revenue of $309 million over the next 12 months.

Due to the nature of our service contracts in our Remotely Operated Vehicle, Subsea Projects, Asset Integrity and Advanced Technologies segments, the majority of our contracts either have initial contract terms of one year or less or have customer option cancellation clauses that lead us to consider the original expected duration of one year or less.

In our Subsea Products and Advanced Technologies segments, we have long-term contracts that extend beyond one year, and these make up the majority of the balance reported. We also have shorter-term product contracts with an expected original duration of one year or less that have been excluded.

Where appropriate, we have made estimates within the transaction price of elements of variable consideration within the contracts and constrained those amounts to a level where we consider that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The amount of revenue recognized in the three- and six-month periods ended June 30, 2019, which was associated with performance obligations completed or partially completed in prior periods was not significant.

As of June 30, 2019, there was no outstanding liability balance for refunds or returns due to the nature of our contracts and the services and products we provide. Our warranties are limited to assurance warranties that are of a standard length and are not considered to be a material right. The majority of our contracts consist of a single performance obligation. When there are multiple obligations, we look for observable evidence of stand-alone selling prices on which to base the allocation. This involves judgment as to the appropriateness of the observable evidence relating to the facts and circumstances of the contract. If we do not have observable evidence, we estimate stand-alone selling prices by taking a cost plus margin approach, using typical margins from the type of product or service, customer and regional geography involved.

Costs to Obtain or Fulfill a Contract

In line with the available expedient, we capitalize costs to obtain a contract when those amounts are significant and the contract is expected at inception to exceed one year in duration; otherwise, the costs are expensed in the period when incurred. Costs to obtain a contract primarily consist of bid and proposal costs, which are incremental to our fixed costs. There were no balances or amortization of costs to obtain a contract in the current reporting periods.

Costs to fulfill a contract primarily consist of certain mobilization costs incurred to provide services or products to our customers. These costs are deferred and amortized over the period of contract performance. The closing balance of costs to fulfill a contract was $14 million and $13 million as of June 30, 2019 and December 31, 2018, respectively. For the three- and six-month periods ended June 30, 2019, $1.7 million and $4.3 million of amortization expense was recorded, respectively. For the three- and six-month periods ended June 30, 2018, we recorded amortization expense of $1.2 million and $2.5 million, respectively. No impairment costs were recognized.