REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2018
Revenues	$	4,873		$	(241	)	$	4,632
Cost of operations		4,148			(200	)		3,948
Income tax benefit		(18	)		(1	)		(19	)
Net income		124			(40	)		84

Consolidated Balance Sheet as of September 30, 2018
Assets
Current assets:
Contracts in progress		737			(14	)		723

Liabilities and equity
Current liabilities:
Advance billings on contracts		1,733			-			1,733
Income taxes payable		144			(1	)		143

Stockholders' equity⁽¹⁾
Retained earnings		69			(13	)		56

⁽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:

	September 30, 2018				December 31, 2017
	(In approximate millions)
NCSA	$	6,519	57	%	$	437	11	%
EARC		1,502	13	%		732	19	%
MENA		2,164	19	%		2,249	58	%
APAC		713	6	%		483	12	%
Technology		614	5	%		-	-
Total	$	11,512	100	%	$	3,901	100	%

Summary of RPOs Expected Revenue Recognition

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

	2018		2019		Thereafter
	(In approximate millions)
Total RPOs	$	2,288	$	6,158	$	3,066

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 September 30, ⁽²⁾				Nine months ended September 30, ⁽²⁾
	2018		2017		2018		2017
	(In millions)
Revenue by product offerings:
Offshore and subsea	$	548	$	959	$	1,809	$	2,267
LNG		553		-		935		-
Downstream ⁽¹⁾		860		-		1,356		-
Power		328		-		532		-
	$	2,289	$	959	$	4,632	$	2,267

Contract types:
Fixed priced	$	1,797	$	947	$	3,693		2,209
Reimbursable		411		-		680		-
Hybrid		10		-		134		-
Unit-basis and other		71		12		125		58
	$	2,289	$	959	$	4,632	$	2,267

Revenue recognition methodology
Over time	$	2,249	$	959	$	4,564	$	2,267
At a point in time		40		-		68		-
	$	2,289	$	959	$	4,632	$	2,267

⁽¹⁾

Includes the results of our Technology operating group.

⁽²⁾

Intercompany amounts have been eliminated in consolidation.