Contract Assets and Contract Liabilities

3 Months Ended

Mar. 31, 2018

Revenue From Contract With Customer [Abstract]

Contract Assets and Contract Liabilities

(5) Contract Assets and Contract Liabilities

Contract assets and liabilities are reflected in the Company’s condensed 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 (in thousands):

	As of
	March 31,			January 1,					December 31,
	2018			2018			Adjustments		2017
Accounts receivable	$	67,616		$	55,599		$	-	$	55,599
Unbilled receivables		43,688			37,906			9,753		28,153
Less: allowance for doubtful accounts		(650	)		(673	)		-		(673	)
Total accounts receivable and unbilled, net	$	110,654		$	92,832		$	9,753	$	83,079

Unbilled receivables increased from $37.9 million at January 1, 2018, which includes adjustments of $9.8 million related to the adoption of ASC 606, to $43.7 million at March 31, 2018. The increase is primarily driven by revenue recognized on certain contracts in advance of customer invoicing.

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.

Advanced billings consisted of the following (in thousands):

	As of
	March 31,		January 1,					December 31,
	2018		2018		Adjustments			2017
Advanced billings	$	126,387	$	119,451	$	45,695		$	73,756
Pre-funded study costs	$	-	$	-	$	(57,406	)	$	57,406

Advanced billings increased from $119.5 million at January 1, 2018, which includes adjustments of $45.7 million related to the adoption of ASC 606, to $126.4 million at March 31, 2018. The increase is primarily driven by billing and/or collection activity in the three months ended March 31, 2018 in advance of revenue being earned for services performed.