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REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 29, 2025
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
March 29, 2025March 30, 2024
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$97,004 $97,049 
Services and products transferred at a point in time116,069 123,858 
Total RMS revenue213,073 220,907 
DSA
Services and products transferred over time591,520 604,125 
Services and products transferred at a point in time1,089 1,327 
Total DSA revenue592,609 605,452 
Manufacturing
Services and products transferred over time91,467 100,058 
Services and products transferred at a point in time87,019 85,143 
Total Manufacturing revenue178,486 185,201 
Total revenue$984,168 $1,011,560 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
March 29, 2025December 28, 2024
(in thousands)
Assets from contracts with customers
Client receivables$556,937 $527,705 
Unbilled revenue215,950 211,511 
Total772,887 739,216 
Less: Allowance for credit losses(16,258)(18,301)
Trade receivables and contract assets, net$756,629 $720,915 
Liabilities from contracts with customers
Current deferred revenue$250,462 $248,322 
Long-term deferred revenue (included in Other long-term liabilities)33,945 34,291 
Customer contract deposits (included in Other current liabilities)99,654 89,446 
Approximately 70% of unbilled revenue as of December 28, 2024, which was $212 million, was billed during the three months ended March 29, 2025. Approximately 70% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the three months ended March 30, 2024.
Approximately 60% of contract liabilities as of December 28, 2024, which was $283 million, were recognized as revenue during the three months ended March 29, 2025. Approximately 60% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the three months ended March 30, 2024.
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 $39 million and $38 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of March 29, 2025 and December 28, 2024, respectively.
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
Three Months Ended
March 29, 2025March 30, 2024
(in thousands)
Beginning balance$18,301 $25,722 
Provisions2,007 934 
Reductions(4,050)(1,249)
Ending balance$16,258 $25,407 
Net provision expenses were $1.5 million and $0.8 million during the three months ended March 29, 2025 and March 30, 2024, 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 March 29, 2025. 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 March 29, 2025 was $781.9 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 $11.6 million and $21.0 million in lease revenue during the three months ended March 29, 2025 and March 30, 2024. 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 unaudited condensed consolidated financial statements.