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REVENUE
 6 Months Ended
Jun. 30, 2023
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 the exploration and production of crude oil and natural gas.
Disaggregation of Revenue
Revenues are disaggregated by geographic location and contract types.
The following tables present total revenue by geography for each reportable segment for the three and six months ended June 30, 2023 and 2022:
Reportable Segments
Three Months Ended
June 30, 2023June 30, 2022
(In millions)SubseaSurface TechnologiesSubseaSurface Technologies
Latin America$558.9 $33.5 $332.5 $27.2 
Europe and Central Asia520.5 51.0 403.6 40.3 
North America252.2 150.2 176.8 144.5 
Africa216.1 11.0 253.7 9.6 
Asia Pacific59.8 17.5 202.1 20.6 
Middle East10.9 90.6 45.9 60.4 
Total revenue$1,618.4 $353.8 $1,414.6 $302.6 
Reportable segments
Six Months Ended
June 30, 2023June 30, 2022
(In millions)SubseaSurface TechnologiesSubseaSurface Technologies
Latin America$999.3 $60.7 $657.3 $48.8 
Europe and Central Asia899.0 95.2 759.6 79.5 
North America502.1 296.3 377.2 260.7 
Africa426.6 20.7 436.8 18.1 
Asia Pacific131.7 35.4 423.6 44.2 
Middle East47.3 175.3 49.2 118.0 
Total revenue$3,006.0 $683.6 $2,703.7 $569.3 
The following tables present total revenue by contract type for each reportable segment for the three and six months ended June 30, 2023 and 2022:
Reportable Segments
Three Months Ended
June 30, 2023June 30, 2022
(In millions)SubseaSurface TechnologiesSubseaSurface Technologies
Services$996.2 $53.2 $920.4 $54.5 
Products604.3 254.5 475.9 206.3 
Lease17.9 46.1 18.3 41.8 
Total revenue$1,618.4 $353.8 $1,414.6 $302.6 
Reportable segments
Six Months Ended
June 30, 2023June 30, 2022
(In millions)SubseaSurface TechnologiesSubseaSurface Technologies
Services$1,811.5 $106.0 $1,766.0 $105.6 
Products1,169.1 484.8 907.4 388.9 
Lease25.4 92.8 30.3 74.8 
Total revenue$3,006.0 $683.6 $2,703.7 $569.3 
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 condensed consolidated balance sheets. Any expected contract losses are recorded in the period in which they become probable.
Contract Assets - Contract assets 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, 2023 and December 31, 2022:
(In millions)June 30,
2023		December 31,
2022		$ change% change
Contract assets$1,266.5 $981.6 $284.9 29.0 
Contract liabilities(1,219.0)(1,156.4)(62.6)(5.4)
Net contract assets (liabilities)$47.5 $(174.8)$222.3 127.2 
The increase in our contract assets from December 31, 2022 to June 30, 2023 was due to the timing of project milestones. The increase in our contract liabilities was driven from an overall portfolio and client mix enabling an acceleration of cash payments in advance.
In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Any subsequent revenue we recognize increases the contract asset balance. Revenue recognized for the three months ended June 30, 2023 and 2022 that was included in the contract liabilities balance as of December 31, 2022 and 2021 was $154.9 million and $102.8 million, respectively and $502.6 million and $215.7 million for the six months ended June 30, 2023 and 2022, respectively.
Net revenue recognized from our performance obligations satisfied in prior periods had unfavorable impact of $1.1 million and favorable impact of $34.2 million for the three months ended June 30, 2023 and 2022, respectively, from changes in the estimate of the stage of completion that impacted revenue. For the six months ended June 30, 2023 and 2022, we had unfavorable impact of $3.7 million and favorable impact of $22.0 million, respectively, from changes in the estimate of the stage of completion that impacted revenue.
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 transaction price of order backlog related to unfilled, confirmed customer orders is estimated at each reporting date. As of June 30, 2023, the aggregate amount of the transaction price allocated to order backlog was $13.3 billion. TechnipFMC expects to recognize revenue on approximately 21.1% of the order backlog through 2023 and 78.9% thereafter.
The following table details the order backlog for each business segment as of June 30, 2023:
(In millions)20232024Thereafter
Subsea$2,352.6 $4,271.6 $5,464.3 
Surface Technologies448.0 182.9 559.2 
Total order backlog$2,800.6 $4,454.5 $6,023.5