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Revenue
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
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 receive in exchange for those goods or services. For a detailed discussion of our revenue recognition policies, refer to the Company’s 2020 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, we record a contract liability 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. 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, 2021 (in thousands):
March 31, 2021December 31, 2020Increase
$%
Accrued revenue$1,132 $1,687 
Costs and estimated profits in excess of billings9,373 8,516 
Contract assets$10,505 $10,203 $302 3 %
Deferred revenue$8,240 $7,863 
Billings in excess of costs and profits recognized2,621 1,817 
Contract liabilities$10,861 $9,680 $1,181 12 %
During the three months ended March 31, 2021, our contract assets increased by $0.3 million and our contract liabilities increased by $1.2 million due to the timing of billings for significant projects within our Subsea and Production Equipment product lines.
During the three months ended March 31, 2021, we recognized $3.9 million of revenue that was included in the contract liability balance at the beginning of the period.
As substantially all of our contracts are less than one year in duration, 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.