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Revenues | 9 Months Ended
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Sep. 27, 2019
Revenue from Contract with Customer [Abstract] |
REVENUES | REVENUES Revenues by disaggregated category were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Product revenues: |  |  |  |  |  |  |
Gross product revenues | $ | 239,916 |  |  | $ | 193,356 |  |  | $ | 704,084 |  |  | $ | 525,438 |
Discounts and allowances | (48,148 | ) |  | (30,410 | ) |  | (139,060 | ) |  | (82,384 | )
Net product revenues | 191,768 |  |  | 162,946 |  |  | 565,024 |  |  | 443,054 |
Collaboration revenues: |  |  |  |  |  |  |
License revenues (1) | 68,035 |  |  | 51,323 |  |  | 128,937 |  |  | 152,261 |
Research and development services revenues (2) | 12,988 |  |  | 10,560 |  |  | 35,814 |  |  | 27,464 |
Other collaboration revenues (3) | (1,088 | ) |  | 568 |  |  | (2,310 | ) |  | 2,445 |
Total collaboration revenues | 79,935 |  |  | 62,451 |  |  | 162,441 |  |  | 182,170 |
Total revenues | $ | 271,703 |  |  | $ | 225,397 |  |  | $ | 727,465 |  |  | $ | 625,224 |
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(1) | License revenues included the recognition of the portion of milestones allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant revenue reversal would not occur, as well as royalty revenues from Ipsen Pharma SAS (Ipsen), Genentech and Daiichi Sankyo.
(2) | Research and development services revenues included the recognition of deferred revenue for the portion of upfront and milestone payments that have been allocated to research and development services performance obligations, as well as development cost reimbursements earned on our collaboration agreements.
(3) | Other collaboration revenues included the profit on the U.S. commercialization of COTELLIC from Genentech and revenues on product supply services provided to Ipsen and Takeda Pharmaceutical Company Ltd. (Takeda), which were offset by the 3% royalty we are required to pay GlaxoSmithKline (GSK) on the net sales by Ipsen of any product incorporating cabozantinib.
Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the p rofit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented. Net product revenues disaggregated by product were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
CABOMETYX | $ | 187,410 |  |  | $ | 158,262 |  |  | $ | 552,315 |  |  | $ | 428,317 |
COMETRIQ | 4,358 |  |  | 4,684 |  |  | 12,709 |  |  | 14,737 |
Net product revenues | $ | 191,768 |  |  | $ | 162,946 |  |  | $ | 565,024 |  |  | $ | 443,054 |
Total revenues disaggregated by significant customer were as follows (dollars in thousands):
| Three Months Ended September 30,
| 2019 |  | 2018
| Dollars |  | Percent of Total |  | Dollars |  | Percent of Total
Ipsen | $ | 76,016 |  |  | 28 | % |  | $ | 57,186 |  |  | 25 | %
Caremark L.L.C. | 35,703 |  |  | 13 | % |  | 30,707 |  |  | 14 | %
Affiliates of McKesson Corporation | 31,901 |  |  | 12 | % |  | 26,597 |  |  | 12 | %
Affiliates of AmerisourceBergen Corporation | 25,235 |  |  | 9 | % |  | 17,232 |  |  | 8 | %
Others, individually less than 10% of Total revenues for all periods presented | 102,848 |  |  | 38 | % |  | 93,675 |  |  | 41 | %
Total revenues | $ | 271,703 |  |  | 100 | % |  | $ | 225,397 |  |  | 100 | %
| Nine Months Ended September 30,
| 2019 |  | 2018
| Dollars |  | Percent of Total |  | Dollars |  | Percent of Total
Ipsen | $ | 120,133 |  |  | 17 | % |  | $ | 145,038 |  |  | 23 | %
Caremark L.L.C. | 105,638 |  |  | 15 | % |  | 83,516 |  |  | 13 | %
Affiliates of McKesson Corporation | 88,496 |  |  | 12 | % |  | 71,249 |  |  | 11 | %
Affiliates of AmerisourceBergen Corporation | 70,503 |  |  | 10 | % |  | 49,995 |  |  | 8 | %
Others, individually less than 10% of Total revenues for all periods presented | 342,695 |  |  | 46 | % |  | 275,426 |  |  | 45 | %
Total revenues | $ | 727,465 |  |  | 100 | % |  | $ | 625,224 |  |  | 100 | %
Total revenues disaggregated by geographic region were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
U.S. | $ | 194,484 |  |  | $ | 166,270 |  |  | $ | 572,957 |  |  | $ | 453,342 |
Europe | 76,017 |  |  | 57,186 |  |  | 120,134 |  |  | 145,038 |
Japan | 1,202 |  |  | 1,941 |  |  | 34,374 |  |  | 26,844 |
Total revenues | $ | 271,703 |  |  | $ | 225,397 |  |  | $ | 727,465 |  |  | $ | 625,224 |
Net product revenues are attributed to geographic region based on the ship-to location. Collaboration revenues are attributed to geographic region based on the location of our collaboration partners’ headquarters. Product Sales Discounts and Allowances The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):
| Chargebacks and Discounts for Prompt Payment |  | Other Customer Credits/Fees and Co-pay Assistance |  | Rebates |  | Total
Balance at December 31, 2018 | $ | 2,322 |  |  | $ | 3,038 |  |  | $ | 11,916 |  |  | $ | 17,276 |
Provision related to sales made in: |  |  |  |  |  |  |
Current period | 92,769 |  |  | 11,190 |  |  | 35,422 |  |  | 139,381 |
Prior periods | (130 | ) |  | (106 | ) |  | (85 | ) |  | (321 | )
Payments and customer credits issued | (92,317 | ) |  | (11,466 | ) |  | (33,127 | ) |  | (136,910 | )
Balance at September 30, 2019 | $ | 2,644 |  |  | $ | 2,656 |  |  | $ | 14,126 |  |  | $ | 19,426 |
Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables and the remaining reserve balances are classified as Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Contract Assets and Liabilities We receive payments from our licensees based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as unbilled collaboration revenue when recognized. Unbilled collaboration revenue was zero as of both September 30, 2019 and December 31, 2018. Upfront and milestone payments may require deferral of revenue recognition to a future period until we perform our obligations under these arrangements and are recorded as deferred revenue upon receipt or when due. Deferred revenue was $15.4 million and $15.9 million as of September 30, 2019 and December 31, 2018, respectively. The amount of revenues recognized during the nine months ended September 30, 2019 and 2018 that were included in the beginning deferred revenue balance as of December 31, 2018 and December 31, 2017 was $2.7 million and $6.1 million, respectively During the three and nine months ended September 30, 2019, we recognized $67.7 million and $129.0 million, respectively, in revenues under Topic 606 for performance obligations satisfied in previous periods as compared to $48.2 million and $151.8 million during the same periods in 2018. Such revenues primarily related to milestone and royalty payments allocated to our license performance obligations of our collaborations with Ipsen, Takeda and Daiichi Sankyo.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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