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Contract Assets and Liabilities
6 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Contract Assets and Liabilities

4. CONTRACT ASSETS AND CONTRACT LIABILITIES

Contract assets and liabilities result due to the timing of revenue recognition, billings and cash collections.

Contract assets include our right to payment for goods and services already transferred to a customer when the right to payment is conditional on something other than the passage of time, for example contracts where we recognize revenue over time but do not have a contractual right to payment until we complete the performance obligations. Contract assets are included in accounts receivable in our Consolidated Balance Sheet.

Contract liabilities consist of advance payments received and billings in excess of revenue recognized. We generally receive up-front payments relating to our consortia studies; we recognize revenue over the life of the study as the testing and analysis results are made available to our consortia members. We record billings in excess of revenue recognized for contracts with a duration less than twelve months as unearned revenue. We classify contract liabilities for contracts with a duration greater than twelve months as current or non-current based on the timing of when we expect to recognize revenue. The current portion of contract liabilities is included in unearned revenue and the non-current portion of contract liabilities is included in other long-term liabilities in our Consolidated Balance Sheet.

The balance of contract assets and contract liabilities consisted of the following (in thousands):

 

 

June 30,

2019

 

 

December 31,

2018

 

Contract assets

 

 

 

 

 

 

 

 

Current

 

$

892

 

 

$

1,145

 

Non-Current

 

 

 

 

 

188

 

 

 

$

892

 

 

$

1,333

 

Contract Liabilities

 

 

 

 

 

 

 

 

Current

 

$

6,379

 

 

$

5,963

 

Non-current

 

 

576

 

 

 

1,401

 

 

 

$

6,955

 

 

$

7,364

 

 

 

 

June 30,

2019

 

Estimate of when contract liabilities will be recognized as revenue

 

 

 

 

within 12 months

 

$

6,379

 

within 12 to 24 months

 

 

576

 

greater than 24 months

 

 

 

We did not recognize any impairment losses on our receivables and contract assets for the three and six months ended June 30, 2019.