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Deferred Revenue
6 Months Ended
Jun. 30, 2021
Revenue From Contract With Customer [Abstract]  
Deferred Revenue

7.

Deferred Revenue

Deferred revenue by revenue classification as of June 30, 2021 and December 31, 2020 was as follows (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

$

15,746

 

 

$

15,463

 

Development

 

 

67,807

 

 

 

57,856

 

Total current deferred revenue

 

 

83,553

 

 

 

73,319

 

Non-current deferred revenue

 

 

 

 

 

 

 

 

Sequencing

 

 

298

 

 

 

724

 

Development

 

 

119,344

 

 

 

162,894

 

Total non-current deferred revenue

 

 

119,642

 

 

 

163,618

 

Total current and non-current deferred revenue

 

$

203,195

 

 

$

236,937

 

 

Deferred revenue from our Genentech Agreement represents $64.8 million and $114.4 million of the current and non-current development deferred revenue balances, respectively, as of June 30, 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 June 30, 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.

During the three and six months ended June 30, 2021, we recognized $2.6 million and $3.4 million in revenue, respectively, as a result of changes in estimates of total samples to be provided under certain of our agreements and cancelled biopharmaceutical customer sequencing contracts for which we had received upfront consideration. Additionally, we recognized $0.5 million and $0.7 million of sequencing revenue during the three and six months ended June 30, 2021, respectively, related to Medicare reimbursements resulting from our determination that the likelihood of additional testing for specific patients was remote.

Changes in deferred revenue during the six months ended June 30, 2021 were as follows (in thousands):

 

Deferred revenue balance at December 31, 2020

 

$

236,937

 

Additions to deferred revenue during the period

 

 

14,141

 

Revenue recognized during the period

 

 

(47,883

)

Deferred revenue balance at June 30, 2021

 

$

203,195

 

 

As of June 30, 2021, $40.6 million was recognized as revenue that was included in the deferred revenue balance at December 31, 2020.