CONTRACTS IN PROGRESS AND ADVANCE BILLINGS ON CONTRACTS (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Contract Assets and Liabilities

Our contract assets and liabilities at June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018 ⁽¹⁾		December 31, 2017
	(In millions)
Costs incurred in excess of costs recognized ⁽¹⁾	$	8	$	98
Revenues recognized less billings to customers ⁽²⁾		910		523
Contracts in progress	$	918	$	621

Costs recognized in excess of costs incurred ⁽¹⁾	$	10	$	(14	)
Billings to customers less revenues recognized ⁽²⁾		1,217		46
Advance billings on contracts	$	1,227	$	32

⁽¹⁾

Costs incurred in excess of costs recognized (assets) and costs recognized in excess of costs incurred (liabilities) resulted from the exclusion of certain costs when measuring progress toward completion under the cost-to-cost method, prior to our adoption of ASC Topic 606. These remaining amounts will be recognized in Cost of operations as the underlying projects progress.

⁽²⁾

During the six months ended June 30, 2018, the change in the asset and liability balances includes $411 million and $1.2 billion, respectively, resulting from the Combination. Revenues recognized for the three and six-months periods ended June 30, 2018 with respect to amounts included in our contract liability balance as of December 31, 2017 were $7 million and $45 million, respectively.