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7. Revenue from contracts with customers

7.2 Contract assets and liabilities

7.2 Contract assets and liabilities

The group has recognized the following revenue-related contract liabilities:

€ million

Note

2020

2019

Contract liabilities resulting from out-licensing agreements

   

Non-current

35

2

2

Current

35

99

7

Total revenue-related contract liabilities

 

101

9

The Group does not have any revenue-related contract assets.

Revenue-related contract liabilities relate to unsatisfied performance obligations resulting from out-licensing agreements with Otsuka, Genentech, GSK and Pfizer (see below). These liabilities have increased mainly because of the new development and license agreement that was concluded during the year between UCB and Genentech Inc.

The following table shows how much of the revenue recognized in the current reporting period was included in the contract liability balance at the beginning of the period and how much relates to performance obligations that were satisfied in previous periods.

€ million

2020

2019

Revenue recognized that was included in the contract liability balance at the beginning of the period

6

13

Revenue resulting from out-licensing agreements

6

13

Revenue recognized that relates to performance obligations that were satisfied in a prior year

136

107

Product sales

34

20

Revenue resulting from out-licensing agreements

102

87

The following table shows unsatisfied performance obligations resulting from out-licensing agreements:

€ million

Note

2020

2019

Aggregate amount of the transaction price allocated to development agreements that are partially or fully unsatisfied as at 31 December

35

99

3

Upfront payments received for out-licensing agreements to be taken in revenue as performance obligations are satisfied over time

35

2

6

Unsatisfied performance obligations resulting from out-licensing agreements

 

101

9

Management expects that 17% of the transaction price allocated to the unsatisfied development agreements as of December 31, 2020 will be recognized as revenue during the next reporting period. 40% is assessed to be recognized during 2022 and the remaining 43% will be recognized in financial years 2021 till 2026. The amount disclosed above does not include variable consideration which is constrained. The performance obligations still to be satisfied concern development activities to be performed over the next years (€ 99 million) as well as providing access to IP rights owned by the Group (€ 2 million).

All other development, manufacturing or other service agreements are for periods of one year or less or are billed based on time incurred. As permitted under IFRS 15, the transaction price allocated to these unsatisfied agreements is not disclosed.

No assets are recognized from costs to fulfill a contract.