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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 29, 2024
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 major business line and timing of transfer of products or services:
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$95,299 $94,458 $192,348 $188,097 
Services and products transferred at a point in time111,090 115,490 234,948 221,617 
Total RMS revenue206,389 209,948 427,296 409,714 
DSA
Services and products transferred over time626,785 662,653 1,230,910 1,324,489 
Services and products transferred at a point in time634 804 1,961 1,321 
Total DSA revenue627,419 663,457 1,232,871 1,325,810 
Manufacturing
Services and products transferred over time104,481 100,460 204,539 186,546 
Services and products transferred at a point in time87,828 86,072 172,971 167,240 
Total Manufacturing revenue192,309 186,532 377,510 353,786 
Total revenue$1,026,117 $1,059,937 $2,037,677 $2,089,310 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
June 29, 2024December 30, 2023
(in thousands)
Assets from contracts with customers
Client receivables$568,283 $578,077 
Unbilled revenue218,889 228,020 
Total787,172 806,097 
Less: Allowance for credit losses(24,951)(25,722)
Trade receivables and contract assets, net$762,221 $780,375 
Liabilities from contracts with customers
Current deferred revenue$247,177 $241,820 
Long-term deferred revenue (included in Other long-term liabilities)29,139 30,919 
Customer contract deposits (included in Other current liabilities)92,032 85,554 
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 85% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the six months ended July 1, 2023.
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. Approximately 75% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the six months ended July 1, 2023.
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 $46 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of June 29, 2024 and December 30, 2023, 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 29, 2024July 1, 2023
(in thousands)
Beginning balance$25,722 $11,278 
Provisions4,719 9,849 
Reductions(5,490)(3,087)
Ending balance$24,951 $18,040 
Net provision expenses were $4.1 million and $9.2 million during the six months ended June 29, 2024 and July 1, 2023, 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 29, 2024. 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 29, 2024 was $856.6 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.
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
(in thousands)Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
Lease revenue$16,716 $23,891 $37,690 $47,981 Service revenue