REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2018

Cumulative Effect of Revenue Recognition Accounting Change

Effect of ASC Topic 606 Adoption―The cumulative effect of adopting ASC 606 due to change in method to measure project progress, as discussed in Note 1, Basis Of Presentation and Significant Accounting Policies, is as follows:

	Impact of ASC 606 adoption
	Legacy GAAP			Adjustment			As reported
	(In thousands)
Consolidated Statements of Operations for the quarter ended March 31, 2018
Revenues	$	590,307		$	17,511		$	607,818
Cost of operations		459,991			15,720			475,711

Operating Income		66,648			1,791			68,439

Provision for income taxes		19,979			736			20,715

Net income		34,134			1,055			35,189

Consolidated Balance Sheets as of March 31, 2018
Assets
Current assets:
Contracts in progress		493,750			12,670			506,420

Liabilities and equity
Current liabilities:
Advance billings on contracts		49,310			(9,103	)		40,207
Income taxes payable		39,934			736			40,670

Stockholders' equity:
Retained earnings (Accumulated deficit)		(14,125	)		21,037			6,912

⁽¹⁾ Includes $20 million of cumulative catch-up adjustment to opening Retained earnings (Accumulated deficit) on January 1, 2018, upon adoption of ASC 606.

Summary of Changes to RPOs

The following table summarizes changes to our RPOs (in thousands):

RPOs at December 31, 2017	$	3,901,443
ASC 606 cumulative effect adjustment at January 1, 2018		(228,126	)
RPOs at January 1, 2018		3,673,317
Bookings from new contracts		193,170
Additions on existing contracts, net		128,004
Less: Amounts recognized in revenues		607,818
RPOs at March 31, 2018 ⁽¹⁾	$	3,386,673

⁽¹⁾	At March 31, 2018, approximately 48% of our RPOs were attributable to Saudi Aramco

Summary of RPOs by Segment

Our RPOs by segment were as follows:

	March 31, 2018
	(in approximate millions)
AEA	$	969	28	%
MEA		2,021	60	%
ASA		397	12	%
Total	$	3,387	100	%

Summary of RPOs Expected Revenue Recognition

Of the March 31, 2018 RPOs, we expect to recognize revenues as follows:

	2018		2019		Thereafter
	(in approximate millions)
Total RPOs	$	1,826	$	1,252	$	309