Contract Assets and Contract Liabilities

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Contract Assets and Contract Liabilities

3. CONTRACT ASSETS AND CONTRACT LIABILITIES

Contract assets and liabilities are reflected in the Company’s consolidated balance sheets within the accounts reflected below.

Contract Assets

Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date.

Accounts receivable and unbilled, net consisted of the following at December 31 (in thousands):

	2021			2020
Accounts receivable	$	150,496		$	137,912
Unbilled receivables		36,107			23,396
Less: allowance for doubtful accounts		(171	)		(346	)
Total accounts receivable and unbilled, net	$	186,432		$	160,962

Contract Liabilities

Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. During the year ended December 31, 2021, the Company recognized approximately $221.7 million of revenue that was included in the Advanced billings balance at the beginning of the year.

Advanced billings consisted of the following at December 31 (in thousands):

	2021		2020
Advanced billings	$	344,641	$	255,664

A rollforward of allowance for doubtful account activity is as follows:

	Year Ended December 31,
	2021			2020			2019
Allowance for doubtful accounts - beginning balance	$	(346	)	$	(583	)	$	(1,032	)
Current year provision		(11	)		(167	)		(263	)
Write-offs, recoveries and the effects of foreign currency exchange		186			404			712
Allowance for doubtful accounts - ending balance	$	(171	)	$	(346	)	$	(583	)