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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
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 EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 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 time104,378 91,965 339,326 313,582 
Total RMS revenue197,824 186,848 625,120 596,562 
DSA
Services and products transferred over time613,388 663,128 1,844,298 1,987,617 
Services and products transferred at a point in time1,672 900 3,633 2,221 
Total DSA revenue615,060 664,028 1,847,931 1,989,838 
Manufacturing
Services and products transferred over time107,284 94,446 311,823 280,992 
Services and products transferred at a point in time89,595 81,301 262,566 248,541 
Total Manufacturing revenue196,879 175,747 574,389 529,533 
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, 2024December 30, 2023
(in thousands)
Assets from contracts with customers
Client receivables$557,761 $578,077 
Unbilled revenue220,323 228,020 
Total778,084 806,097 
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, 2024September 30, 2023
(in thousands)
Beginning balance$25,722 $11,278 
Provisions8,223 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 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 EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
(in thousands)
Lease revenue$16,622 $22,254 $54,312 $70,235 Service revenue