Concentrations of Credit Risk

6 Months Ended

Jun. 30, 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 securities issued by the U.S. Treasury and other 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 June 30, 2017, 20%, 19%, 17%, and 11% 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 percentage of total revenues recognized by customer that represent 10% or more of total revenues was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Diplomat Specialty Pharmacy	23	%	52	%	24	%	53	%
Caremark L.L.C.	19	%	9	%	18	%	6	%
Accredo Health, Incorporated	14	%	7	%	13	%	5	%
Affiliates of McKesson Corporation	13	%	6	%	13	%	4	%
Merck	—	%	—	%	—	%	10	%

All of our long-lived assets are located in the U.S. 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.

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 the location of our collaboration partner's headquarters (dollars in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
U.S.	$	89,371	$	32,192	$	163,046	$	45,786
Europe	5,494		4,060		10,024		5,893
Japan	4,143		—		6,825		—

We recorded losses of $0.1 million relating to foreign exchange fluctuations for both the six months ended June 30, 2017 and 2016.