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Revenues
 12 Months Ended
Jan. 01, 2021
Revenue from Contract with Customer [Abstract]  
Revenues REVENUES
Revenues consisted of the following (in thousands):
 Year Ended December 31,
 202020192018
Product revenues:
Gross product revenues$962,591 $957,621 $738,529 
Discounts and allowances(221,041)(197,671)(119,250)
Net product revenues741,550 759,950 619,279 
Collaboration revenues:
License revenues167,295 165,914 200,272 
Collaboration services revenues
78,693 41,911 34,275 
Total collaboration revenues245,988 207,825 234,547 
Total revenues$987,538 $967,775 $853,826 
Net product revenues and license revenues are recorded in accordance with Topic 606. License revenues include the recognition of the portion of milestones payments 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 reversal of revenues would not occur, as well as royalty revenues and our share of profits under our collaboration agreement with Genentech. Collaboration services revenues were recorded in accordance with Topic 808 and by analogy to Topic 606. Collaboration services revenues include the recognition of deferred revenues for the portion of upfront and milestone payments allocated to our research and development services performance obligations, development cost reimbursements earned under our collaboration agreements, product supply revenues, net of product supply costs, and the royalties we paid to GSK on sales of products containing cabozantinib by our collaboration partners.
Net product revenues by product were as follows (in thousands):
Year Ended December 31,
202020192018
CABOMETYX
$718,687 $733,421 $599,946 
COMETRIQ
22,863 26,529 19,333 
Net product revenues
$741,550 $759,950 $619,279 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
 
Year Ended December 31,
 
202020192018
Ipsen15 %16 %21 %
Affiliates of CVS Health Corporation14 %15 %13 %
Affiliates of McKesson Corporation12 %12 %12 %
Affiliates of Optum Specialty Pharmacy11 %13 %14 %
Affiliates of AmerisourceBergen Corporation11 %11 %9 %
Total revenues by geographic region were as follows (in thousands):
Year Ended December 31,
202020192018
U.S.
$752,890 $770,244 $632,927 
Europe
151,631 152,771 182,879 
Japan
83,017 44,760 38,020 
Total revenues
$987,538 $967,775 $853,826 
Total revenues are comprised of net product revenues which are attributed to geographic regions based on the ship-to location and license and collaboration services revenues which are attributed to geographic regions based on the location of our collaboration partners’ headquarters.
Product Sales Discounts and Allowances
The activities and ending allowance balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):
Chargebacks, Discounts for Prompt Payment and Other
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 period129,936 15,605 48,250 193,791 
Prior periods3,989 (111)2 3,880 
Payments and customer credits issued(128,733)(15,035)(44,946)(188,714)
Balance at December 31, 2019
7,514 3,497 15,222 26,233 
Provision related to sales made in:
Current period146,537 16,162 58,049 220,748 
Prior periods33 (352)612 293 
Payments and customer credits issued(144,231)(16,028)(56,479)(216,738)
Balance at December 31, 2020
$9,853 $3,279 $17,404 $30,536 
The allowances for chargebacks, discounts for prompt payment and other are recorded as a reduction of trade receivables, net, and the remaining reserves are recorded as rebates and fees due to customers in the accompanying Consolidated Balance Sheets.
Contract Assets and Liabilities
We receive payments from our collaboration partners 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 a contract asset when recognized. We may be required to defer recognition of revenue for upfront and milestone payments until we perform our obligations under these arrangements, and such amounts are recorded as deferred revenue upon receipt or when due. For those contracts that have multiple performance obligations, contract assets and liabilities are reported on a net basis at the contract level. Contract assets and liabilities were as follows (in thousands):
 
December 31,
 
20202019
Contract assets(1)
$— $1,062 
Contract liabilities:
Current portion(2)
$1,790 $— 
Long-term portion(3)
3,755 6,596 
Total contract liabilities$5,545 $6,596 
____________________
(1)    Presented in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets.
(2)    Presented in other current liabilities in the accompanying Consolidated Balance Sheets.
(3)    Presented in the long-term portion of deferred revenues in the accompanying Consolidated Balance Sheets.
During the years ended December 31, 2020, 2019 and 2018, we recognized $9.2 million, $6.5 million and $8.7 million, respectively, in revenues that were included in the beginning deferred revenue balance for those years.
During the years ended December 31, 2020, 2019 and 2018, we recognized $169.7 million, $161.2 million and $198.1 million, respectively, in revenues for performance obligations satisfied in previous periods. Such revenues were primarily related to milestone and royalty payments allocated to our license performance obligations for our collaborations with Ipsen, Takeda, Daiichi Sankyo and Genentech.
As of December 31, 2020, $86.1 million of the combined transaction prices for our Ipsen and Takeda collaborations were allocated to performance obligations that had not yet been satisfied. See “Note 3. Collaboration Agreements - Cabozantinib Collaborations - Performance Obligations and Transaction Prices for our Ipsen and Takeda Collaborations” for additional information about the expected timing to satisfy these performance obligations.