Revenues

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For a detailed discussion of revenue recognition policies, refer to the Company’s 2018 Annual Report on Form 10-K.

Disaggregated Revenue

Refer to Note 11 Business Segments for disaggregated revenue by product line and geography.

Contract Balances

Contract balances are determined on a contract by contract basis. Contract assets represent revenue recognized for goods and services provided to our customers when payment is conditioned on something other than the passage of time. Similarly, when we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, we record a contract liability. Such contract liabilities typically result from billings in excess of costs incurred on construction contracts and advance payments received on product sales.

The following table reflects the changes in our contract assets and contract liabilities balances for the three months ended March 31, 2019:



	March 31, 2019		December 31, 2018		Decrease
	March 31, 2019		December 31, 2018		$			%
Accrued revenue	$	1,020	$	862
Costs and estimated profits in excess of billings	8,074		9,159
Contract assets	$	9,094	$	10,021	$	(927	)	(9	)%

Deferred revenue	$	7,010	$	8,335
Billings in excess of costs and profits recognized	1,426		3,210
Contract liabilities	$	8,436	$	11,545	$	(3,109	)	(27	)%

During the three months ended March 31, 2019, our contract assets decreased by $0.9 million primarily due to the timing of orders and billings in our Production Equipment product line and our contract liabilities decreased by $3.1 million primarily due the timing of billings for customer projects in our Subsea product line.

During the three months ended March 31, 2019, we recognized revenue of $7.6 million that was included in the contract liability balance at the beginning of the period.

In the second quarter of 2018, our Subsea Technologies product line received an order to supply a submarine rescue vehicle and related equipment which we expect to deliver in 2020. We use the cost-to-cost method to measure progress on this contract to recognize revenue over time. Other than this contract, all of our other contracts are less than one year in duration. As such, we have elected to apply the practical expedient which allows an entity to exclude disclosures about its remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.