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Revenue
 6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
The majority of our revenue is from long-term contracts associated with designing and manufacturing products and systems and providing services to customers involved in exploration and production of crude oil and natural gas.
Disaggregation of Revenue
The Company disaggregates revenue by geographic location and contract types. The tables also include a reconciliation of the disaggregated revenue with the reportable segments.
The following tables present products and services revenue by geography for each reportable segment for the three and six months ended June 30, 2019 and 2018:
 
Reportable Segments
 
Three Months Ended
 
June 30, 2019
 
June 30, 2018
(In millions)
Subsea
 
Onshore/
Offshore
 
Surface Technologies
 
Subsea
 
Onshore/
Offshore
 
Surface Technologies
Europe, Russia, Central Asia
$
459.6

 
$
651.2

 
$
60.0

 
$
409.4

 
$
705.5

 
$
58.3

America
341.8

 
196.9

 
199.9

 
331.3

 
90.9

 
237.5

Asia Pacific
177.7

 
275.5

 
44.1

 
137.9

 
310.6

 
29.7

Africa
373.8

 
111.1

 
14.9

 
261.6

 
76.9

 
11.4

Middle East
135.6

 
270.3

 
69.2

 
43.8

 
158.5

 
44.3

Total products and services revenue
$
1,488.5

 
$
1,505.0

 
$
388.1

 
$
1,184.0

 
$
1,342.4

 
$
381.2

 
Reportable Segments
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
(In millions)
Subsea
 
Onshore/
Offshore
 
Surface Technologies
 
Subsea
 
Onshore/
Offshore
 
Surface Technologies
Europe, Russia, Central Asia
$
859.2

 
$
1,292.8

 
$
115.8

 
$
714.9

 
$
1,706.4

 
$
106.5

America
718.9

 
357.3

 
393.1

 
781.9

 
163.6

 
445.0

Asia Pacific
277.4

 
577.4

 
89.1

 
249.9

 
605.9

 
51.8

Africa
519.6

 
171.5

 
26.2

 
541.4

 
147.5

 
27.1

Middle East
270.8

 
441.1

 
121.8

 
50.3

 
292.4

 
98.8

Total products and services revenue
$
2,645.9

 
$
2,840.1

 
$
746.0

 
$
2,338.4

 
$
2,915.8

 
$
729.2

The following tables represent revenue by contract type for each reportable segment for the three and six months ended June 30, 2019 and 2018:
 
Reportable Segments
 
Three Months Ended
 
June 30, 2019
 
June 30, 2018
(In millions)
Subsea
 
Onshore/
Offshore
 
Surface Technologies
 
Subsea(b)
 
Onshore/
Offshore
 
Surface Technologies
Services
$
970.2

 
$
1,505.0

 
$
73.6

 
$
656.5

 
$
1,342.4

 
$
67.1

Products
518.3

 
—

 
314.5

 
527.5

 
—

 
314.1

Total products and services revenue
1,488.5


1,505.0


388.1

 
1,184.0

 
1,342.4

 
381.2

Lease(a)
20.2

 
—

 
32.4

 
33.4

 
—

 
19.9

Total revenue
$
1,508.7

 
$
1,505.0

 
$
420.5

 
$
1,217.4

 
$
1,342.4

 
$
401.1


 
Reportable Segments
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
(In millions)
Subsea
 
Onshore/
Offshore
 
Surface Technologies
 
Subsea(b)
 
Onshore/
Offshore
 
Surface Technologies
Services
$
1,615.8

 
$
2,840.1

 
$
144.0

 
$
1,309.4

 
$
2,915.8

 
$
114.8

Products
1,030.1

 
—

 
602.0

 
1,029.0

 
—

 
614.4

Total products and services revenue
2,645.9

 
2,840.1

 
746.0

 
2,338.4

 
2,915.8

 
729.2

Lease(a)
48.1

 
—

 
67.1

 
59.2

 
—

 
43.5

Total revenue
$
2,694.0

 
$
2,840.1

 
$
813.1

 
$
2,397.6

 
$
2,915.8

 
$
772.7

(a)
Represents revenue not subject to ASC Topic 606. See Note 4 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to lease revenue.
(b)
We revised the condensed consolidated statement of operations to correct the classification of service revenue and product revenue in the amount of $177.9 million and $331.3 million for three and six months ended June 30, 2018, respectively. See Note 1 to our condensed consolidated financial statements of this Quarterly Report for additional disclosure related to the revision.
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts (contract assets), and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) on the consolidated balance sheets.
Contract Assets - Contract Assets, previously disclosed as costs and estimated earnings in excess of billings on uncompleted contracts, include unbilled amounts typically resulting from sales under long-term contracts when revenue is recognized over time and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Costs and estimated earnings in excess of billings on uncompleted contracts are generally classified as current.
Contract Liabilities - We sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities.
The following table provides information about net contract assets (liabilities) as of June 30, 2019 and December 31, 2018:
(In millions)
June 30,
2019
 
December 31,
2018
 
$ change
 
% change
Contract assets
$
1,612.4

 
$
1,295.0

 
$
317.4

 
24.5

Contract (liabilities)
(4,354.6
)
 
(4,085.1
)
 
(269.5
)
 
(6.6
)
Net contract assets (liabilities)
$
(2,742.2
)
 
$
(2,790.1
)
 
$
47.9

 
1.7


The increase in our contract assets from December 31, 2018 to June 30, 2019 was primarily due to the timing of milestones.
The increase in our contract liabilities was primarily due to additional cash received, excluding amounts recognized as revenue during the period.
In order to determine revenue recognized in the period from contract liabilities, we allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Revenue recognized for the three months ended June 30, 2019 and 2018 that were included in the contract liabilities balance at December 31, 2018 and 2017 was $1,147.1 million and $601.4 million, respectively, and $2,014.3 million and $1,437.7 million for the six months ended June 30, 2019 and 2018, respectively.
In addition, revenue recognized for the three months ended June 30, 2019 and 2018 from our performance obligations satisfied in previous periods had a favorable impact of $325.7 million and a favorable impact of $136.4 million, respectively, and $493.4 million and $306.8 million for the six months ended June 30, 2019 and 2018, respectively. This primarily relates to changes in the estimated costs to complete certain projects.  
Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations
Remaining unsatisfied performance obligations (“RUPO” or “order backlog”) represent the transaction price for products and services for which we have a material right but work has not been performed. Transaction price of the order backlog includes the base transaction price, variable consideration, and changes in transaction price. The order backlog table does not include contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The transaction price of order backlog related to unfilled, confirmed customer orders is estimated at each reporting date. As of June 30, 2019, the aggregate amount of the transaction price allocated to order backlog was $25,781.9 million. The Company expects to recognize revenue on approximately 23.8% of the order backlog through 2019 and 76.2% thereafter.
The following table details the order backlog for each business segment as of June 30, 2019:
(In millions)
2019
 
2020
 
Thereafter
Subsea
$
2,480.5

 
$
3,465.5

 
$
2,801.0

Onshore/Offshore
3,252.7

 
4,758.7

 
8,596.9

Surface Technologies
393.6

 
33.0

 
—

Total remaining unsatisfied performance obligations
$
6,126.8

 
$
8,257.2

 
$
11,397.9