XML 23 R11.htm IDEA: XBRL DOCUMENT v3.24.2
Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Revenue by Category

The following tables present revenue disaggregated by business segment, geographical region, and timing of transfer of goods or services.
Three Months EndedSix Months Ended
(in thousands)Jun 30, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
Business Segment:
Energy
Subsea Robotics$214,985 $186,512 $401,917 $355,673 
Manufactured Products139,314 124,882 268,767 237,821 
Offshore Projects Group144,058 130,547 259,112 234,854 
Integrity Management & Digital Solutions73,492 63,166 143,182 123,249 
Total Energy571,849 505,107 1,072,978 951,597 
Aerospace and Defense Technologies96,959 92,803 194,922 183,300 
Total$668,808 $597,910 $1,267,900 $1,134,897 
Geographic Operating Areas:
Foreign:
Africa$114,055 $78,247 $201,294 $161,975 
Norway60,066 48,508 117,790 93,448 
United Kingdom63,990 54,268 114,189 94,633 
Brazil54,620 47,993 111,672 88,608 
Asia and Australia53,505 57,690 102,889 110,584 
Other38,490 43,848 73,377 69,021 
Total Foreign384,726 330,554 721,211 618,269 
United States284,082 267,356 546,689 516,628 
Total$668,808 $597,910 $1,267,900 $1,134,897 
Timing of Transfer of Goods or Services:
Revenue recognized over time$619,832 $557,968 $1,171,682 $1,053,452 
Revenue recognized at a point in time48,976 39,942 96,218 81,445 
Total$668,808 $597,910 $1,267,900 $1,134,897 

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.
Six months ended
(in thousands)Jun 30, 2024Jun 30, 2023
Total contract assets, beginning of period$234,505 $184,847 
Revenue accrued1,167,835 1,077,338 
Amounts billed(1,177,865)(1,047,179)
Total contract assets, end of period$224,475 $215,006 
Total contract liabilities, beginning of period$164,631 $112,950 
Deferrals of milestone payments116,619 65,465 
Recognition of revenue for goods and services(100,193)(59,394)
Total contract liabilities, end of period$181,057 $119,021 
Performance Obligations

As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations that were unsatisfied (or partially unsatisfied) was $572 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 $299 million over the next 12 months, $186 million within the next 24 months, $67 million within the next 36 months, and we expect to recognize substantially all of the remaining balance of $20 million within the next 48 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 June 30, 2024. 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 three- and six-month periods ended June 30, 2024 and 2023, that was associated with performance obligations completed or partially completed in prior periods was not significant.
As of June 30, 2024, 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 $6.0 million and $7.8 million as of June 30, 2024 and December 31, 2023, respectively. For the three- and six-month periods ended June 30, 2024, we recorded amortization expense of $1.1 million and
$2.1 million, respectively. For the three- and six-month periods ended June 30, 2023, we recorded amortization expense of $1.6 million and $2.8 million, respectively. No impairment costs were recognized.