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Revenues
 9 Months Ended
Oct. 01, 2021
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Product revenues:
Gross product revenues$357,462 $220,401 $1,051,871 $702,865 
Discounts and allowances(94,345)(51,814)(277,294)(161,668)
Net product revenues263,117 168,587 774,577 541,197 
Collaboration revenues:
License revenues49,694 33,205 116,862 113,318 
Collaboration services revenues15,612 29,300 92,391 62,971 
Total collaboration revenues65,306 62,505 209,253 176,289 
Total revenues$328,423 $231,092 $983,830 $717,486 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Ipsen Pharma SAS12 %16 %17 %16 %
Affiliates of McKesson Corporation15 %12 %15 %13 %
Affiliates of CVS Health Corporation16 %14 %15 %15 %
Affiliates of AmerisourceBergen Corporation16 %11 %14 %11 %
Affiliates of Optum Specialty Pharmacy9 %10 %9 %11 %
Takeda Pharmaceutical Company Limited7 %10 %3 %7 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
September 30, 2021December 31, 2020
Ipsen Pharma SAS24 %23 %
Affiliates of McKesson Corporation19 %12 %
Affiliates of AmerisourceBergen Corporation16 %11 %
Affiliates of CVS Health Corporation13 %11 %
Takeda Pharmaceutical Company Limited3 %10 %
Revenues by geographic region were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
U.S.$266,436 $171,552 $783,583 $549,379 
Europe38,095 36,006 162,822 117,959 
Japan23,892 23,534 37,425 50,148 
Total revenues$328,423 $231,092 $983,830 $717,486 
Total revenues include net product revenues attributed to geographic regions based on the ship-to location and license and collaboration services revenues attributed to geographic regions based on the location of our collaboration partners’ headquarters.
Net product revenues and license revenues are recorded in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). License revenues include the recognition of the portion of milestone 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 ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 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 on sales of products containing cabozantinib by our collaboration partners. We received notification that, effective January 1, 2021, Royalty Pharma plc (Royalty Pharma) acquired from GlaxoSmithKline (GSK) all rights, title and interest in royalties on net product sales containing cabozantinib for non-U.S. markets for the full term of the royalty and for the U.S. market through September 2026, after which time U.S. royalties will revert back to GSK.
Net product revenues by product were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
CABOMETYX$259,791 $159,555 $759,000 $522,381 
COMETRIQ3,326 9,032 15,577 18,816 
Net product revenues$263,117 $168,587 $774,577 $541,197 
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, Discounts for Prompt Payment and Other
Other Customer Credits/Fees and Co-pay Assistance
Rebates
Total
Balance at December 31, 2020
$9,853 $3,279 $17,404 $30,536 
Provision related to sales made in:
Current period178,083 22,945 74,851 275,879 
Prior periods(22)(225)1,662 1,415 
Payments and customer credits issued(171,416)(18,789)(70,007)(260,212)
Balance at September 30, 2021
$16,498 $7,210 $23,910 $47,618 
The allowance 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 Condensed 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 were zero as of September 30, 2021 and December 31, 2020. Contract liabilities as of September 30, 2021 are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract liabilities were as follows (in thousands):
September 30, 2021December 31, 2020
Contract liabilities:
Current portion (1)
$7,535 $1,790 
Long-term portion (1)
9,444 3,755 
Total contract liabilities$16,979 $5,545 
____________________
(1)    Presented in Other current liabilities and Long-term portion of deferred revenues, respectively, in the accompanying Condensed Consolidated Balance Sheets.
We recognized $6.8 million in revenues in each of the nine months ended September 30, 2021 and 2020, that were included in the beginning deferred revenues balance for those periods.
During the three and nine months ended September 30, 2021, we recognized $48.4 million and $116.2 million, respectively, in revenues for performance obligations satisfied in previous periods, as compared to $33.1 million and $115.3 million for the corresponding periods in 2020. Such revenues were primarily related to royalty payments allocated to the license performance obligations for our collaborations with Ipsen Pharma SAS (Ipsen), Takeda, Daiichi Sankyo and Genentech.
As of September 30, 2021, $86.5 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” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2020 for information about the expected timing to satisfy these performance obligations.