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Revenue
 3 Months Ended
Mar. 31, 2022
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 2021 Annual Report on Form 10-K.
Disaggregated Revenue
Refer to Note 10 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, 2022 (in thousands):
March 31, 2022December 31, 2021Increase / (Decrease)
$%
Accrued revenue$1,240 $2,245 
Costs and estimated profits in excess of billings15,020 8,285 
Contract assets$16,260 $10,530 $5,730 54 %
Deferred revenue$7,904 $7,276 
Billings in excess of costs and profits recognized5,851 9,705 
Contract liabilities$13,755 $16,981 $(3,226)(19)%
During the three months ended March 31, 2022, our contract assets increased by $5.7 million due to increasing project activity for process oil treatment equipment in our Production Equipment product line and our contract liabilities decreased by $3.2 million primarily due to lower customer advance payments for projects in our Subsea product line.
During the three months ended March 31, 2022, we recognized $10.8 million of revenue that was included in the contract liability balance at the beginning of the period.
As 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.