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Revenues
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues REVENUES
Revenues consisted of the following (in thousands):
 Year Ended December 31,
 202120202019
Product revenues:
Gross product revenues$1,452,913 $962,591 $957,621 
Discounts and allowances(375,657)(221,041)(197,671)
Net product revenues1,077,256 741,550 759,950 
Collaboration revenues:
License revenues249,956 167,295 165,914 
Collaboration services revenues
107,758 78,693 41,911 
Total collaboration revenues357,714 245,988 207,825 
Total revenues$1,434,970 $987,538 $967,775 
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 total net sales of any product 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):
Year Ended December 31,
202120202019
CABOMETYX
$1,054,050 $718,687 $733,421 
COMETRIQ
23,206 22,863 26,529 
Net product revenues
$1,077,256 $741,550 $759,950 
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,
 
202120202019
Ipsen Pharma SAS21 %15 %16 %
Affiliates of CVS Health Corporation14 %14 %15 %
Affiliates of McKesson Corporation14 %12 %12 %
Affiliates of AmerisourceBergen Corporation14 %11 %11 %
Affiliates of Optum Specialty Pharmacy8 %11 %13 %
As of December 31, 2021 and 2020, the percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
 
December 31,
 
20212020
Ipsen Pharma SAS50 %23 %
Affiliates of AmerisourceBergen Corporation11 %11 %
Affiliates of McKesson Corporation10 %12 %
Affiliates of CVS Health Corporation9 %11 %
Takeda Pharmaceutical Company Limited2 %10 %
Total revenues by geographic region were as follows (in thousands):
Year Ended December 31,
202120202019
U.S.
$1,089,396 $752,890 $770,244 
Europe
302,073 151,631 152,771 
Japan
43,501 83,017 44,760 
Total revenues
$1,434,970 $987,538 $967,775 
Total revenues include net product revenues attributed to geographic regions based on ship-to location and license and collaboration services revenues attributed to geographic regions 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, Discounts for Prompt Payment and Other
Other Customer Credits/Fees and Co-pay Assistance
Rebates
Total
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 
Provision related to sales made in:
Current period243,119 30,728 100,361 374,208 
Prior periods(64)(111)1,624 1,449 
Payments and customer credits issued(238,283)(25,021)(94,564)(357,868)
Balance at December 31, 2021
$14,625 $8,875 $24,825 $48,325 
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 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 as of December 31, 2021 are primarily related to contract assets from Ipsen Pharma SAS (Ipsen) and contract liabilities as of December 31, 2021 are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract assets and liabilities were as follows (in thousands):
 
December 31,
 
20212020
Contract assets(1)
$1,665 $— 
Contract liabilities:
Current portion(2)
$7,814 $1,790 
Long-term portion(3)
8,739 3,755 
Total contract liabilities$16,553 $5,545 
____________________
(1)    Presented in other long-term 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, 2021, 2020 and 2019, we recognized $8.5 million, $9.2 million and $6.5 million, respectively, in revenues that were included in the beginning deferred revenues balance for those years.
During the years ended December 31, 2021, 2020 and 2019, we recognized $148.7 million, $169.7 million and $161.2 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 Pharma SAS (Ipsen), Takeda, Daiichi Sankyo and Genentech.
As of December 31, 2021, $87.5 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” for additional information about the expected timing to satisfy these performance obligations.