REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

Cumulative Effect of Revenue Recognition Accounting Change

The cumulative effect of adopting ASC 606 due to our change in method of measuring project progress toward completion, as discussed in Note 2, Basis of Presentation and Significant Accounting Policies, is as follows:

	Impact of ASC 606 adoption
	Recognition under previous guidance		Adjustment			Recognition under ASC 606
	(In millions)
Consolidated Statement of Operations for six months ended June 30, 2018
Revenues	$	2,550	$	(207	)	$	2,343
Cost of operations		2,141		(179	)		1,962
Net income		110		(28	)		82

Consolidated Balance Sheet as of June 30, 2018
Assets
Current assets:
Contracts in progress		926		(8	)		918

Stockholders' equity ⁽¹⁾
Retained earnings		62		(8	)		54

⁽¹⁾

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

Summary of RPOs by Segment

Our RPOs by segment were as follows:

	June 30, 2018				December 31, 2017
	(In approximate millions)
NCSA	$	5,181	51	%	$	437	11	%
EARC		1,250	12	%		732	19	%
MENA		2,630	26	%		2,249	58	%
APAC		638	6	%		483	12	%
Technology		487	5	%		-	-
Total	$	10,186	100	%	$	3,901	100	%

Summary of RPOs Expected Revenue Recognition

Of the June 30, 2018 RPOs, we expect to recognize revenues as follows:

	2018		2019		Thereafter
	(In approximate millions)
Total RPOs	$	4,480	$	4,249	$	1,457

Summary of Revenue by Product Offering, Contract Types and Revenue Recognition Methodology

Our revenue by product offering, contract types and revenue recognition methodology was as follows:

	Three months ended June 30, ⁽²⁾				Six months ended June 30, ⁽²⁾
	2018		2017		2018		2017
	(In millions)
Revenue by product offering:
Offshore and subsea	$	653	$	789	$	1,261	$	1,308
LNG		382		-		382		-
Downstream ⁽¹⁾		496		-		496		-
Power		204		-		204		-
	$	1,735	$	789	$	2,343	$	1,308

Contract types:
Fixed priced	$	1,313	$	786	$	1,896		1,262
Reimbursable		269		-		269		-
Hybrid		124		-		124		-
Unit-basis and other		29		3		54		46
	$	1,735	$	789	$	2,343	$	1,308

Revenue recognition methodology
Over time	$	1,707	$	789	$	2,315	$	1,308
At a point in time		28		-		28		-
	$	1,735	$	789	$	2,343	$	1,308

⁽¹⁾

Includes the results of our Technology operating group.

⁽²⁾

Intercompany amounts have been eliminated in consolidation.