Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

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Revenue Recognition
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The following table provides information about disaggregated revenue from contracts with customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa), and APAC (Australia, New Zealand, Southeast Asia, China).
Segment information for fiscal year 2019 is as follows (in thousands):
Year Ended December 31, 2019
Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product Revenue $ 29,465    $ —    $ 29,465   
Research and development revenue 28,691    10,302    38,993   
Total revenues $ 58,156    $ 10,302    $ 68,458   
Primary geographical markets:
Americas
$ 13,039    $ —    $ 13,039   
EMEA
26,831    10,302    37,133   
APAC
18,286    —    18,286   
Total revenues $ 58,156    $ 10,302    $ 68,458   

Segment information for fiscal year 2018 is as follows (in thousands):
Year Ended December 31, 2018
Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product Revenue $ 25,590    $ —    $ 25,590   
Research and development revenue 21,483    13,521    35,004   
Total revenues $ 47,073    $ 13,521    $ 60,594   
Primary geographical markets:
Americas
$ 15,332    $ 38    $ 15,370   
EMEA
8,878    13,483    22,361   
APAC
22,863    —    22,863   
Total revenues $ 47,073    $ 13,521    $ 60,594   
Segment information for fiscal year 2017 is as follows (in thousands):
Year Ended December 31, 2017
Performance Enzymes Novel Biotherapeutics Total
Major products and service: $ 26,685    $ —    $ 26,685   
       Product Revenue 15,648    7,691    23,339   
Research and development revenue $ 42,333    $ 7,691    $ 50,024   
Total revenues
Primary geographical markets:
Americas
$ 15,575    $ —    $ 15,575   
EMEA
11,919    7,691    19,610   
APAC
14,839    —    14,839   
Total revenues $ 42,333    $ 7,691    $ 50,024   

Contract Balances
The following table presents changes in the contract assets, unbilled receivables, contract costs, and contract liabilities for the years ended December 31, 2019 and 2018 (in thousands):
Year Ended December 31, 2019
Beginning Balance Additions
Deductions (1)
Ending Balance
Contract Assets $ 35    12,073    (11,081)   $ 1,027   
Unbilled receivables, current $ 1,916    13,014    (4,831)   $ 10,099   
Unbilled receivables, non-current (2)
$ 786    —    (786)   $ —   
Contract Costs (2)
$ 42    —    (42)   $ —   
Contract Liabilities: Deferred Revenue $ 8,288    7,552    (13,796)   $ 2,044   

Year Ended December 31, 2018
Beginning Balance Additions
Deductions (1)
Ending Balance
Contract Assets $ —    8,934    (8,899)   $ 35   
Unbilled receivables, current $ —    2,908    (992)   $ 1,916   
Unbilled receivables, non-current (2)
$ —    786    —    $ 786   
Contract Costs (2)
$ 239    —    (197)   $ 42   
Contract Liabilities: Deferred Revenue $ 18,966    6,446    (17,124)   $ 8,288   
(1) The asset or liability balances are presented as a net position per contract and accordingly the deductions column includes the netting effect of presenting each contract on a net position basis as either a net liability or asset.
(2) Included in non-current assets in our consolidated balance sheets.
We recognize accounts receivable when we have an unconditional right to recognize revenue and have issued an invoice to the customer. Our payment terms are generally between 30 and 90 days. We recognize unbilled receivables when we have an unconditional right to recognize revenue and have not issued an invoice to our customer. Unbilled receivables, current are transferred to accounts receivable on issuance of an invoice. Unbilled receivables, non-current are transferred to accounts receivable on issuance of an invoice; payment is expected from the customer thereon. Unbilled receivables are classified separately on the consolidated balance sheet as assets.
Contract assets represent our right to recognize revenue for custom products with no alternate use and under binding non-cancellable purchase orders and are largely related to our procurement of product. We recognize contract assets when we have a conditional right to recognize revenue. The delivery pattern of certain of products occurs in advance of the invoicing process,
which generates contract assets. In addition, we recognize a contract asset related to milestones not eligible for royalty accounting when we assess it is probable of being achieved and there will be no significant reversal of cumulative revenues. Contract assets are classified separately on the consolidated balance sheet as an asset and transferred to accounts receivable when our rights to payment become unconditional.
Contract liabilities, or deferred revenue, represent our obligation to transfer a product or service to the customer, and for which we have received consideration from the customer. We recognize a contract liability when we receive advance customer payments under development agreements for research and development services, upfront license payments, and from upfront customer payments received under product supply agreements. Contract liabilities are classified as a liability on the consolidated balance sheet.
Contract costs relate to incremental costs of obtaining a contract with a customer. Contract costs are amortized along with the associated revenue over the term of the contract.
During the years ended December 31, 2019 and 2018, we had no asset impairment charges related to contract assets.
We recognized the following revenues (in thousands):

Year Ended December 31,   
Revenue recognized in the period for: 2019 2018
Amounts included in contract liabilities at the beginning of the period:
     Performance obligations satisfied $ 4,567    $ 13,615   
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods 1,442    374   
Performance obligations satisfied from new activities in the period - contract revenue 62,449    46,605   
Total revenue $ 68,458    $ 60,594   


Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of December 31, 2019.
The balances in the table below are partially based on judgments involved in estimating future orders from customers subject to the exercise of material rights pursuant to respective contracts (in thousands):

2020 2021 2022 2023 and Thereafter Total
Product Revenue $ —    $ 365    $ 1,622    $ —    $ 1,987   
Research and development revenue 57    —    —    —    57   
Total revenues $ 57    $ 365    $ 1,622    $ —    $ 2,044