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REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended
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Sep. 28, 2024
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 reportable segment and timing of transfer of products or services:
| Three Months Ended |  | Nine Months Ended
| September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023
| (in thousands)
Timing of Revenue Recognition: |  |  |  |  |  |  |
RMS |  |  |  |  |  |  |
Services and products transferred over time | $ | 93,446 |  |  | $ | 94,883 |  |  | $ | 285,794 |  |  | $ | 282,980 |
Services and products transferred at a point in time | 104,378 |  |  | 91,965 |  |  | 339,326 |  |  | 313,582 |
Total RMS revenue | 197,824 |  |  | 186,848 |  |  | 625,120 |  |  | 596,562 |
DSA |  |  |  |  |  |  |
Services and products transferred over time | 613,388 |  |  | 663,128 |  |  | 1,844,298 |  |  | 1,987,617 |
Services and products transferred at a point in time | 1,672 |  |  | 900 |  |  | 3,633 |  |  | 2,221 |
Total DSA revenue | 615,060 |  |  | 664,028 |  |  | 1,847,931 |  |  | 1,989,838 |
Manufacturing |  |  |  |  |  |  |
Services and products transferred over time | 107,284 |  |  | 94,446 |  |  | 311,823 |  |  | 280,992 |
Services and products transferred at a point in time | 89,595 |  |  | 81,301 |  |  | 262,566 |  |  | 248,541 |
Total Manufacturing revenue | 196,879 |  |  | 175,747 |  |  | 574,389 |  |  | 529,533 |
Total revenue | $ | 1,009,763 |  |  | $ | 1,026,623 |  |  | $ | 3,047,440 |  |  | $ | 3,115,933 |
Contract Balances from Contracts with Customers The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
| September 28, 2024 |  | December 30, 2023
| (in thousands)
Assets from contracts with customers |  |  |
Client receivables | $ | 557,761 |  |  | $ | 578,077 |
Unbilled revenue | 220,323 |  |  | 228,020 |
Total | 778,084 |  |  | 806,097 |
Less: Allowance for credit losses | (23,877) |  |  | (25,722) |
Trade receivables and contract assets, net | $ | 754,207 |  |  | $ | 780,375 |
Liabilities from contracts with customers |  |  |
Current deferred revenue | $ | 251,968 |  |  | $ | 241,820 |
Long-term deferred revenue (included in Other long-term liabilities) | 34,915 |  |  | 30,919 |
Customer contract deposits (included in Other current liabilities) | 99,455 |  |  | 85,554 |
Approximately 90% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the nine months ended September 28, 2024. Approximately 90% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the nine months ended September 30, 2023. Approximately 80% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the nine months ended September 28, 2024. Approximately 80% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the nine months ended September 30, 2023. 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 $36 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of September 28, 2024 and December 30, 2023, respectively. Allowance for Credit Losses The following is a summary of the activity of the Company’s allowance for credit losses:
|  |  | Nine Months Ended
|  |  |  |  | September 28, 2024 |  | September 30, 2023
|  |  |  |  | (in thousands)
Beginning balance |  |  |  |  | $ | 25,722 |  |  | $ | 11,278 |
Provisions |  |  |  |  | 8,223 |  |  | 11,030 |
Reductions |  |  |  |  | (10,068) |  |  | (1,121) |
Ending balance |  |  |  |  | $ | 23,877 |  |  | $ | 21,187 |
Net provision expenses were $7.2 million and $10.2 million during the nine months ended September 28, 2024 and September 30, 2023, respectively and include recoveries of balances previously written off, which are excluded from the table above. 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 September 28, 2024. 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 September 28, 2024 was $803.5 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 Obligation s 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 Ended |  | Nine Months Ended |  |
| September 28, 2024 |  | September 30, 2023 |  | September 28, 2024 |  | September 30, 2023 |  | Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
| (in thousands) |  |
Lease revenue | $ | 16,622 |  |  | $ | 22,254 |  |  | $ | 54,312 |  |  | $ | 70,235 |  |  | Service revenue

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- 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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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