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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

4. Revenue Recognition

Revenues from contracts with customers (excludes leasing) consisted of the following:

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

Subsea products

 

$

44,579

 

 

$

49,466

 

 

$

90,696

 

 

$

95,749

 

Well construction

 

 

11,249

 

 

 

12,513

 

 

 

24,378

 

 

 

21,872

 

Total products

 

 

55,828

 

 

 

61,979

 

 

 

115,074

 

 

 

117,621

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Subsea services

 

 

16,333

 

 

 

14,785

 

 

 

32,818

 

 

 

27,942

 

Well construction services

 

 

7,400

 

 

 

4,811

 

 

 

12,196

 

 

 

9,153

 

Total services

 

 

23,733

 

 

 

19,596

 

 

 

45,014

 

 

 

37,095

 

 

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

 

Contract Assets at December 31, 2022

 

$

138,592

 

Additions

 

 

77,817

 

Transfers to Trade Receivables, Net

 

 

(82,744

)

Contract Assets at June 30, 2023

 

$

133,665

 

Contract Liabilities (amounts shown in thousands)

 

Contract Liabilities at December 31, 2022

 

$

6,824

 

Additions

 

 

9,457

 

Revenue Recognized

 

 

(11,801

)

Contract Liabilities at June 30, 2023

 

$

4,480

 

Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $90.5 million and $92.6 million at June 30, 2023 and December 31, 2022, respectively. Unbilled contract assets are transferred to trade receivables, net, when the rights become unconditional. Contract liabilities primarily relate to advance payments from customers.

Obligations for returns and refunds were considered immaterial as of June 30, 2023.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $55.4 million as of June 30, 2023. The Company expects to recognize revenue on approximately 85.3% of the remaining performance obligations over the next 12 months and the remaining 14.7% 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.