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Deferred Revenue
3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]  
Deferred Revenue

7.

Deferred Revenue

Deferred revenue by revenue classification as of March 31, 2021 and December 31, 2020 was as follows (in thousands):

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

$

17,191

 

 

$

15,463

 

Development

 

 

61,157

 

 

 

57,856

 

Total current deferred revenue

 

 

78,348

 

 

 

73,319

 

Non-current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

 

662

 

 

 

724

 

Development

 

 

143,694

 

 

 

162,894

 

Total non-current deferred revenue

 

 

144,356

 

 

 

163,618

 

Total current and non-current deferred revenue

 

$

222,704

 

 

$

236,937

 

 

Deferred revenue from our Genentech Agreement represents $58.6 million and $137.9 million of the current and non-current development deferred revenue balances, respectively, as of March 31, 2021 and $55.1 million and $157.0 million of the current and non-current development deferred revenue balances, respectively, as of December 31, 2020. 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 five to six years from March 31, 2021. 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 three months ended March 31, 2021 were as follows (in thousands):

 

Deferred revenue balance at December 31, 2020

 

$

236,937

 

Additions to deferred revenue during the period

 

 

7,118

 

Revenue recognized during the period

 

 

(21,351

)

Deferred revenue balance at March 31, 2021

 

$

222,704

 

 

As of March 31, 2021, $19.0 million was recognized as revenue that was included in the deferred revenue balance at December 31, 2020. This is inclusive of $0.2 million of sequencing revenue recognized as a result of cancelled biopharmaceutical and research customer sequencing contracts, $0.2 million of sequencing revenue related to Medicare that was recognized due to our determination that additional testing for specific patients was remote and $0.4 million related to a change in anticipated samples to be received in connection with an MRD agreement.