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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jul. 01, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by major business line and timing of transfer of products or services:
Three Months EndedSix Months Ended
July 1, 2023June 25, 2022July 1, 2023June 25, 2022
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$94,458 $85,803 $188,097 $155,727 
Services and products transferred at a point in time115,490 100,607 221,617 207,225 
Total RMS revenue209,948 186,410 409,714 362,952 
DSA
Services and products transferred over time662,653 589,371 1,324,489 1,131,707 
Services and products transferred at a point in time804 2,546 1,321 4,469 
Total DSA revenue663,457 591,917 1,325,810 1,136,176 
Manufacturing
Services and products transferred over time100,460 92,811 186,546 187,820 
Services and products transferred at a point in time86,072 101,993 167,240 200,112 
Total Manufacturing revenue186,532 194,804 353,786 387,932 
Total revenue$1,059,937 $973,131 $2,089,310 $1,887,060 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
July 1, 2023December 31, 2022
(in thousands)
Assets from contracts with customers
Client receivables$591,006 $559,410 
Unbilled revenue227,680 204,258 
Total818,686 763,668 
Less: Allowance for credit losses(18,040)(11,278)
Trade receivables and contract assets, net$800,646 $752,390 
Liabilities from contracts with customers
Current deferred revenue$257,396 $264,259 
Long-term deferred revenue (included in Other long-term liabilities)29,533 25,795 
Customer contract deposits (included in Other current-liabilities)77,422 91,640 
Approximately 85% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the six months ended July 1, 2023. Approximately 75% of unbilled revenue as of December 25, 2021, which was $161 million, was billed during the six months ended June 25, 2022.
Approximately 75% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the six months ended July 1, 2023. Approximately 75% of contract liabilities as of December 25, 2021, which was $240 million, were recognized as revenue during the six months ended June 25, 2022.
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 $42 million and $54 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of July 1, 2023 and December 31, 2022, respectively. Net provisions of $9.1 million and $0.4 million were recorded to the allowance for credit losses for the six months ended July 1, 2023 and June 25, 2022, respectively.
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 July 1, 2023. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases”. The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of July 1, 2023 was $1,029.1 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
Other Performance Obligations
As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year.
Three Months EndedSix Months Ended
July 1, 2023June 25, 2022July 1, 2023June 25, 2022
(in thousands)Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
Lease revenue$23,891 $13,912 $47,981 $21,768 Service revenue