Revenues (Tables)

9 Months Ended

Sep. 27, 2019

Revenue from Contract with Customer [Abstract]

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 profit 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

Activities and Ending Reserve Balances for Significant Categories of 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