Concentrations of Credit Risk

3 Months Ended

Mar. 31, 2017

CONCENTRATIONS OF CREDIT RISK

Financial instruments that potentially subject us to concentrations of credit risk are primarily trade and other receivables and investments. Investments consist of money market funds, commercial paper, corporate bonds with high credit quality, and U.S. Treasury and government sponsored enterprises. All investments are maintained with financial institutions that management believes are creditworthy.

Trade and other receivables are unsecured and are concentrated in the pharmaceutical and biotechnology industries. Accordingly, we may be exposed to credit risk generally associated with pharmaceutical and biotechnology companies. We have incurred no bad debt expense since inception. As of March 31, 2017, 21%, 18%, 16%, and 12% of our trade receivables are with Diplomat Specialty Pharmacy, Caremark L.L.C., affiliates of McKesson Corporation, and Accredo Health, Incorporated, respectively. All of these customers have historically paid promptly.

The following table sets forth the percentage of total revenues recognized by customer that represent 10% or more of total revenues:



	Three Months Ended March 31,
	2017		2016
Diplomat Specialty Pharmacy	25	%	55	%
Caremark L.L.C.	17	%	—	%
Affiliates of McKesson Corporation	14	%	—	%
Accredo Health, Incorporated	12	%	—	%
Merck	—	%	32	%

We have operations solely in the U.S., while some of our collaboration partners have headquarters outside of the U.S. and some of our clinical trials for cabozantinib are also conducted outside of the U.S. All of our long-lived assets are located in the U.S.

The following table shows the revenues earned by geographic region. Net product revenues are attributed to regions based on the delivery location. Collaboration revenues are attributed to regions based on where the collaboration partner is headquartered (dollars in thousands):



	Three Months Ended March 31,
	2017		2016
U.S.	$	73,675	$	13,594
Europe	4,530		1,833
Japan	2,682		—

We recorded losses of $0.1 million and $0.2 million relating to foreign exchange fluctuations for three months ended March 31, 2017 and 2016, respectively.