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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 28, 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 EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$97,748 $95,299 $194,752 $192,348 
Services and products transferred at a point in time115,523 111,090 231,592 234,948 
Total RMS revenue213,271 206,389 426,344 427,296 
DSA
Services and products transferred over time617,865 626,785 1,209,385 1,230,910 
Services and products transferred at a point in time164 634 1,253 1,961 
Total DSA revenue618,029 627,419 1,210,638 1,232,871 
Manufacturing
Services and products transferred over time106,617 104,481 198,084 204,539 
Services and products transferred at a point in time94,218 87,828 181,237 172,971 
Total Manufacturing revenue200,835 192,309 379,321 377,510 
Total revenue$1,032,135 $1,026,117 $2,016,303 $2,037,677 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
June 28, 2025December 28, 2024
(in thousands)
Assets from contracts with customers
Client receivables$565,178 $527,705 
Unbilled revenue215,229 211,511 
Total780,407 739,216 
Less: Allowance for credit losses(12,838)(18,301)
Trade receivables and contract assets, net$767,569 $720,915 
Liabilities from contracts with customers
Current deferred revenue$268,340 $248,322 
Long-term deferred revenue (included in Other long-term liabilities)37,666 34,291 
Customer contract deposits (included in Other current liabilities)92,582 89,446 
Approximately 85% of unbilled revenue as of December 28, 2024, which was $212 million, was billed during the six months ended June 28, 2025. Approximately 85% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the six months ended June 29, 2024.
Approximately 70% of contract liabilities as of December 28, 2024, which was $283 million, were recognized as revenue during the six months ended June 28, 2025. Approximately 70% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the six months ended June 29, 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 $34 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 June 28, 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:
Six Months Ended
June 28, 2025June 29, 2024
(in thousands)
Beginning balance$18,301 $25,722 
Provisions2,191 4,719 
Reductions(7,654)(5,490)
Ending balance$12,838 $24,951 
Net provision expenses were $1.0 million and $4.1 million during the six months ended June 28, 2025 and June 29, 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 June 28, 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 June 28, 2025 was $727.3 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 $12.1 million and $16.7 million in lease revenue during the three months ended June 28, 2025 and June 29, 2024. The Company recognized $23.6 million and $37.7 million in lease revenue during the six months ended June 28, 2025 and June 29, 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.