Trade Accounts Receivable, Unbilled Services and Unearned Income |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trade Accounts Receivable, Unbilled Services and Unearned Income | Trade Accounts Receivable, Unbilled Services and Unearned Income Trade accounts receivables and unbilled services consist of the following:
Unbilled services and unearned income were as follows:
Unbilled services, which is comprised of approximately 71% and 69% of unbilled receivables and 29% and 31% of contract assets as of December 31, 2025 and December 31, 2024, respectively, decreased by $73 million as compared to December 31, 2024. Contract assets are unbilled services for which invoicing is based on the timing of certain milestones related to service contracts for clinical research whereas unbilled receivables are billable upon the passage of time. Unearned income increased by $339 million over the same period resulting in a decrease of $412 million in the net balance of unbilled services and unearned income between December 31, 2025 and 2024. The change in the net balance is driven by the difference in timing of revenue recognition in accordance with ASC 606, Revenue from Contracts with Customers, primarily related to the Company’s Research & Development Solutions contracts (which is based on the percentage of costs incurred) versus the timing of invoicing, which is primarily based on certain milestones. The majority of the unearned income balance as of the beginning of the year was recognized in revenues during the year ended December 31, 2025. Bad debt expense recognized on the Company’s receivables and unbilled services was immaterial for the years ended December 31, 2025, 2024 and 2023. Accounts Receivable Factoring Arrangements The Company has accounts receivable factoring agreements to sell certain eligible unsecured trade accounts receivable, either based on automatic arrangements or at its option, without recourse, to unrelated third-party financial institutions for cash. For the year ended December 31, 2025, through its accounts receivable factoring arrangements that the Company utilizes most frequently, the Company factored approximately $704 million of customer invoices on a non-recourse basis and received approximately $698 million in cash proceeds from the sales. For the year ended December 31, 2024, through these same accounts receivable factoring arrangements, the Company factored approximately $678 million of customer invoices on a non-recourse basis and received approximately $666 million in cash proceeds from the sales. The fees associated with these transactions were immaterial. The Company has other accounts receivable arrangements for which the activity associated with them is immaterial. |
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