XML 62 R10.htm IDEA: XBRL DOCUMENT
v3.20.1

REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended
--- | ---
Mar. 28, 2020
Revenue from Contract with Customer [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services:
| Three Months Ended |  |  |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  |  |  |
| (in thousands) |  |  |  |  |  |
Major Products/Service Lines: |  |  |  |  |  |  |
RMS | $ | 145,996 |  |  | $ | 137,172 |  |  |  |  |
DSA | 438,683 |  |  | 354,197 |  |  |  |  |
Manufacturing | 122,380 |  |  | 113,200 |  |  |  |  |
Total revenue | $ | 707,059 |  |  | $ | 604,569 |  |  |  |  |
| Three Months Ended |  |  |  |  |  |
| March 28, 2020 |  | March 30, 2019 |  |  |  |
| (in thousands) |  |  |  |  |  |
Timing of Revenue Recognition: |  |  |  |  |  |  |
RMS |  |  |  |  |  |  |
Services and products transferred over time | $ | 60,041 |  |  | $ | 54,813 |  |  |  |  |
Services and products transferred at a point in time | 85,955 |  |  | 82,359 |  |  |  |  |
DSA |  |  |  |  |  |  |
Services and products transferred over time | 438,564 |  |  | 354,078 |  |  |  |  |
Services and products transferred at a point in time | 119 |  |  | 119 |  |  |  |  |
Manufacturing |  |  |  |  |  |  |
Services and products transferred over time | 37,314 |  |  | 31,896 |  |  |  |  |
Services and products transferred at a point in time | 85,066 |  |  | 81,304 |  |  |  |  |
Total revenue | $ | 707,059 |  |  | $ | 604,569 |  |  |  |  |
RMS The RMS business generates revenue through the commercial production and sale of research models, research products, and the provision of services related to the maintenance and monitoring of research models and management of clients’ research operations. Revenue from the sale of research models and products is recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the shipping terms of a contract. Revenue generated from research models services is recognized over time and is typically based on a right-to-invoice measure of progress (output method) as invoiced amounts correspond directly to the value of the Company’s performance to date. DSA The Discovery and Safety Assessment business provides a full suite of integrated drug discovery services directed at the identification, screening and selection of a lead compound for drug development and offers a full range of safety assessment services including bioanalysis, drug metabolism, pharmacokinetics, toxicology and pathology. Discovery and Safety Assessment services revenue is generally recognized over time using the cost-to-cost or right to invoice measures of progress, primarily representing fixed fee service contracts and per unit service contracts, respectively. Manufacturing The Manufacturing business includes Microbial Solutions, which provides in vitro (non-animal) lot-release testing products, microbial detection products, and species identification services; Biologics Testing Services (Biologics), which performs specialized testing of biologics; and Avian Vaccine Services (Avian), which supplies specific-pathogen-free chicken eggs and chickens. Species identification service revenue is generally recognized at a point in time as identifications are completed by the Company. Biologics service revenue is generally recognized over time using the cost-to-cost measure of progress. Microbial Solutions and Avian product sales are generally recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Transaction Price Allocated to Future Performance Obligations The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 28, 2020. Excluded from the disclosure is the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The Company has assessed future performance obligations with respect to the COVID-19 pandemic uncertainties and believes there is an insignificant impact on the ability to meet future performance obligations and the amount of revenue to be recognized. Th e following table inclu des estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of March 28, 2020:
| Revenue Expected to be Recognized in Future Periods |  |  |  |  |  |  |  |
| Less than 1 Year |  | 1 to 3 Years |  | 4 to 5 Years |  | Beyond 5 Years |  | Total
| (in thousands) |  |  |  |  |  |  |  |
DSA | $ | 195,192 |  |  | $ | 92,180 |  |  | $ | 4,861 |  |  | $ | 639 |  |  | $ | 292,872 |
Manufacturing | 10,241 |  |  | 8,825 |  |  | 32 |  |  | 21 |  |  | 19,119 |
Total | $ | 205,433 |  |  | $ | 101,005 |  |  | $ | 4,893 |  |  | $ | 660 |  |  | $ | 311,991 |
Contract Balances from Contracts with Customers The timing of revenue recognition, billings and cash collections results in billed receivables (client receivables), contract assets (unbilled revenue), and contract liabilities (current and long-term deferred revenue and customer contract deposits) on the unaudited condensed consolidated balance sheets. The Company’s payment terms are generally 30 days in the United States and consistent with prevailing practice in international markets. A contract asset is recorded when a right to consideration in exchange for goods or services transferred to a customer is conditioned other than the passage of time. Client receivables are recorded separately from contract assets since only the passage of time is required before consideration is due. A contract liability is recorded when consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
| March 28, 2020 |  | December 28, 2019
| (in thousands) |  |
Balances from contracts with customers: |  |  |
Client receivables | $ | 415,359 |  |  | $ | 395,740 |
Contract assets (unbilled revenue) | 131,660 |  |  | 121,957 |
Contract liabilities (current and long-term deferred revenue) | 194,907 |  |  | 192,788 |
Contract liabilities (customer contract deposits) | 37,319 |  |  | 33,080 |
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $19 million a nd $27 million of u npaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of March 28, 2020 and December 28, 2019, respectively. Advanced client payments of approxim ately $37 million and $33 million have been presented as customer contract deposits within other current liabilities in the accompanying unaudited condensed consolidated balance sheets as of March 28, 2020 and December 28, 2019, respectively. Other changes in the contract asset and the contract liability balances during the three months ended March 28, 2020 were as follows: (i) Changes due to business combinations: See Note 2. “Business Combinations” for client receivables, contract assets, and contract liabilities that were acquired as part of the HemaCare acquisition on January 3, 2020. (ii) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract liability, including adjustments arising from a change in the measure of progress, a change in an estimate of the transaction price (including any changes in the assessment of whether an estimate of variable consideration is constrained), or a contract modification: During the three months ended March 28, 2020, an immaterial cumulative catch-up adjustment to revenue was recorded. (iii) A change in the time frame for a right to consideration to become unconditional (that is, for a contract asset to be recorded as a client receivable): Approximatel y 60% of un billed revenue as of December 28, 2019 was billed during the three months ended March 28, 2020. (iv) A change in the time frame for a performance obligation to be satisfied (that is, for the recognition of revenue arising from a contract liability): Approxima tely 60% of contr act liabilities as of December 28, 2019 were recognized as revenue during the three months ended March 28, 2020.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration