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Deferred Revenue
12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Deferred Revenue

9.

Deferred Revenue

Deferred revenue by revenue classification as of December 31, 2020 and 2019 was as follows (in thousands):

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

Current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

$

15,463

 

 

$

12,482

 

Development

 

 

57,856

 

 

 

48,512

 

Total current deferred revenue

 

 

73,319

 

 

 

60,994

 

Non-current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

 

724

 

 

 

1,459

 

Development

 

 

162,894

 

 

 

217,873

 

Total non-current deferred revenue

 

 

163,618

 

 

 

219,332

 

Total current and non-current deferred revenue

 

$

236,937

 

 

$

280,326

 

 

Deferred revenue from our Genentech Agreement represents $55.1 million and $157.0 million of the current and non-current development deferred revenue balances, respectively, as of December 31, 2020 and $48.1 million and $216.8 million of the current and non-current development deferred revenue balances, respectively, as of December 31, 2019. In general, we expect that the current amounts will be recognized as revenue within 12 months and the non-current amounts will be recognized as revenue over a period of approximately six to seven years. This period of time represents an estimate of the research and development period to develop cellular therapies in oncology, which may be reduced or increased based on the various development activities.

Changes in deferred revenue during the year ended December 31, 2020 were as follows (in thousands):

 

Deferred revenue balance at December 31, 2019

 

$

280,326

 

Additions to deferred revenue during the period

 

 

26,434

 

Revenue recognized during the period

 

 

(69,823

)

Deferred revenue balance at December 31, 2020

 

$

236,937

 

 

As of December 31, 2020, $61.6 million was recognized as revenue that was included in the deferred revenue balance at December 31, 2019. This is inclusive of $1.0 million of sequencing revenue recognized as a result of cancelled biopharmaceutical customer sequencing contracts and $0.6 million of sequencing revenue related to Medicare that was recognized due to our determination that additional testing for specific patients was remote.