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Revenue (Notes)
 12 Months Ended
Dec. 31, 2023
Revenue [Abstract]  
Revenue recognition [Text Block] REVENUE
Revenue by Category
The following table presents revenue disaggregated by business segment, geographical region, and timing of transfer of goods or services.
Year Ended December 31,
(in thousands)202320222021
Business Segment:
Energy
Subsea Robotics$752,521 $621,921 $538,515 
Manufactured Products493,692 382,361 344,251 
Offshore Projects Group546,366 489,317 378,121 
Integrity Management & Digital Solutions255,282 229,884 241,393 
Total Energy 2,047,861 1,723,483 1,502,280 
Aerospace and Defense Technologies376,845 342,601 366,995 
Total$2,424,706 $2,066,084 $1,869,275 
Year Ended December 31,
(in thousands)202320222021
Geographic Operating Areas:
Foreign:
Africa$331,891 $286,687 $273,095 
Asia and Australia274,160 206,564 184,659 
United Kingdom205,886 177,234 181,453 
Brazil202,892 139,859 111,198 
Norway189,802 180,186 214,306 
Other189,694 96,742 93,021 
Total Foreign1,394,325 1,087,272 1,057,732 
United States1,030,381 978,812 811,543 
Total$2,424,706 $2,066,084 $1,869,275 
Year Ended December 31,
(in thousands)202320222021
Timing of Transfer of Goods or Services:
Revenue recognized over time$2,272,160 $1,929,031 $1,747,585 
Revenue recognized at a point in time152,546 137,053 121,690 
Total$2,424,706 $2,066,084 $1,869,275 
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, while other milestones are achieved after revenue is recognized resulting in a contract asset.
The following table provides information about contract assets and contract liabilities from contracts with customers.
Year Ended December 31,
(in thousands)20232022
Total contract assets, beginning of period$184,847 $164,847 
Revenue accrued2,328,382 1,984,385 
Amounts billed(2,278,724)(1,964,385)
Total contract assets, end of period$234,505 $184,847 
Total contract liabilities, beginning of period$112,950 $88,175 
Deferrals of milestone payments149,864 104,649 
Recognition of revenue for goods and services(98,183)(79,874)
Total contract liabilities, end of period$164,631 $112,950 
Performance Obligations
As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations that were unsatisfied (or partially unsatisfied) was $432 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 $325 million over the next 12 months, $100 million within the next 24 months and we expect to recognize substantially all of the remaining balance of $7.6 million within the next 36 months.
In our Manufactured Products and ADTech segments, we have long-term contracts that extend beyond one year, and these make up the majority of the performance obligations balance reported as of December 31, 2023. 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 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 years ended December 31, 2023 and 2022 that was associated with performance obligations completed or partially completed in prior periods was not significant.
As of December 31, 2023, there were no significant outstanding liability balances 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 material rights. 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 practical expedient, we capitalize incremental costs to obtain a contract that would not have been incurred if the contract had not been obtained when those amounts are significant and the contract is expected at inception to exceed one year in duration. Our costs to obtain a contract primarily consist of bid and proposal costs, which are generally expensed in the period when incurred. 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 $7.8 million and $10 million as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023, 2022 and 2021, we recorded amortization expense of $5.8 million, $5.6 million and $4.5 million, respectively. No impairment costs were recognized.