Contract Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Contract with Customer, Asset and Liability [Abstract]

The following table shows the opening and closing balances of contract assets and contract liabilities from contracts with customers (dollars in thousands):



	September 30, 2019		December 31, 2018		$ Change			% Change
Contract assets, net (1)	$	4,283	$	12,065	$	(7,782	)	(65	)%
Contract liabilities, net (2)	$	6,864	$	19,217	$	(12,353	)	(64	)%

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(1)

At September 30, 2019 and December 31, 2018, approximately $4.3 million and $9.3 million, respectively, of these contract asset amounts are classified as current assets and are included in Prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets. The remaining amounts are classified as noncurrent and are included in Other assets. The net decrease in contract assets during the nine months ended September 30, 2019 was primarily due to reclassifications to accounts receivable following the resolution of certain conditions other than the passage of time affecting the Company’s rights to consideration for the sale of certain goods, partially offset by certain sales activity during the period.

(2)

At September 30, 2019 and December 31, 2018, approximately $2.1 million and $1.7 million, respectively, of these contract liability amounts are classified as current liabilities and are included in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets. The remaining amounts are classified as noncurrent and are included in Other liabilities. During the nine months ended September 30, 2019, the Company entered into new contracts resulting in an increase to contract liabilities of approximately $4.0 million. This increase was more than offset by approximately $14.9 million in reductions following certain product discontinuation activities in our International Pharmaceuticals segment and approximately $1.1 million in revenue recognized during the period.