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REVENUE FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Dec. 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:
Timing of Revenue Recognition:202420232022
(in thousands)
RMS
Services and products transferred over time$380,899 $377,947 $340,708 
Services and products transferred at a point in time448,478 414,396 398,467 
Total RMS revenue829,377 792,343 739,175 
DSA
Services and products transferred over time2,446,751 2,611,564 2,440,646 
Services and products transferred at a point in time4,529 4,059 6,670 
Total DSA revenue2,451,280 2,615,623 2,447,316 
Manufacturing
Services and products transferred over time407,474 381,942 371,500 
Services and products transferred at a point in time361,858 339,501 418,069 
Total Manufacturing revenue769,332 721,443 789,569 
Total revenue$4,049,989 $4,129,409 $3,976,060 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
December 28, 2024December 30, 2023
(in thousands)
Assets from contracts with customers
Client receivables$527,705 $578,077 
Unbilled revenue211,511 228,020 
Total739,216 806,097 
Less: Allowance for credit losses(18,301)(25,722)
Trade receivables and contract assets, net$720,915 $780,375 
Liabilities from contracts with customers
Current deferred revenue$248,322 $241,820 
Long term deferred revenue (included in Other long-term liabilities)34,291 30,919 
Customer contract deposits (included in Other current liabilities)
89,446 85,554 
Approximately 90% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during fiscal year 2024. Approximately 95% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during fiscal year 2023.
Approximately 80% of contract liabilities as of December 30, 2023, which was $273 million were recognized as revenue during fiscal year 2024. Approximately 85% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during fiscal year 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 $38 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying consolidated balance sheets as of December 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:
Fiscal Year
December 28, 2024December 30, 2023December 31, 2022
(in thousands)
Beginning balance$25,722 $11,278 $7,180 
Provisions14,774 18,225 6,706 
Reductions(22,195)(3,781)(2,608)
Ending balance$18,301 $25,722 $11,278 
Net provision expenses were $12.9 million, $18.2 million, and $6.7 million in fiscal years 2024, 2023, and 2022, 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 December 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 December 28, 2024 was $788.5 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, and recorded within service revenue. The Company recognized $69.0 million, $93.1 million, and $60.1 million in lease revenue in fiscal years 2024, 2023, and 2022, respectively. Due to the nature of these arrangements and timing of the contractual lease term, the remaining revenue to be recognized related to these lease performance obligations is not material to the consolidated financial statements.