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Revenue Recognition
3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

5. Revenue Recognition

Revenues from contracts with customers consisted of the following:

 

 

Three months ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

Products:

 

 

 

 

 

 

Subsea products

 

$

35,332

 

 

$

46,117

 

Well construction

 

 

29,230

 

 

 

13,129

 

Total products

 

$

64,562

 

 

$

59,246

 

Services:

 

 

 

 

 

 

Subsea services

 

$

16,723

 

 

$

16,487

 

Well construction services

 

 

13,464

 

 

 

4,794

 

Total services

 

$

30,187

 

 

$

21,281

 

Leasing:

 

 

 

 

 

 

Subsea leasing

 

$

7,856

 

 

$

7,409

 

Well Construction leasing

 

 

7,692

 

 

 

2,929

 

Total leasing

 

$

15,548

 

 

$

10,338

 

Total revenues

 

$

110,297

 

 

$

90,865

 

 

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract assets at December 31, 2023

 

$

148,429

 

Additions

 

 

107,633

 

Transfers to Trade receivables, net

 

 

(116,452

)

Contract assets at March 31, 2024

 

$

139,610

 

 

Contract Liabilities (amounts shown in thousands)

Contract liabilities at December 31, 2023

 

$

7,583

 

Additions

 

 

1,920

 

Revenue recognized

 

 

(2,664

)

Contract liabilities at March 31, 2024

 

$

6,839

 

Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $92.2 million and $90.2 million at March 31, 2024 and December 31, 2023, respectively. Unbilled contract assets are transferred to trade receivables, net, when the right to bill becomes unconditional. Contract liabilities primarily relate to advance payments from customers.

Obligations for returns and refunds were considered immaterial as of March 31, 2024.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $56.0 million as of March 31, 2024. The Company expects to recognize revenue on approximately 92.2% of the remaining performance obligations over the next 12 months and the remaining 7.8% 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.