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Revenues
 6 Months Ended
Jul. 01, 2022
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Product revenues:
Gross product revenues$483,073 $380,204 $931,310 $694,409 
Discounts and allowances(136,029)(95,956)(273,968)(182,949)
Net product revenues347,044 284,248 657,342 511,460 
Collaboration revenues:
License revenues57,526 39,640 89,593 67,168 
Collaboration services revenues14,857 61,289 28,472 76,779 
Total collaboration revenues72,383 100,929 118,065 143,947 
Total revenues$419,427 $385,177 $775,407 $655,407 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Affiliates of McKesson Corporation16 %14 %17 %14 %
Affiliates of CVS Health Corporation16 %13 %16 %14 %
Affiliates of AmerisourceBergen Corporation15 %12 %16 %13 %
Ipsen Pharma SAS15 %24 %12 %19 %
Accredo Health, Incorporated10 %8 %9 %8 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
June 30, 2022December 31, 2021
Ipsen Pharma SAS30 %50 %
Affiliates of McKesson Corporation17 %10 %
Affiliates of AmerisourceBergen Corporation14 %11 %
Affiliates of CVS Health Corporation14 %9 %
Cardinal Health10 %6 %
Revenues by geographic region were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
U.S.$349,615 $287,190 $663,680 $517,147 
Europe62,240 90,921 96,767 124,727 
Japan7,572 7,066 14,960 13,533 
Total revenues$419,427 $385,177 $775,407 $655,407 
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.
Net product revenues by product were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
CABOMETYX$339,159 $275,614 $641,971 $499,209 
COMETRIQ7,885 8,634 15,371 12,251 
Net product revenues$347,044 $284,248 $657,342 $511,460 
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, 2021
$14,625 $8,875 $24,825 $48,325 
Provision related to sales made in:
Current period175,564 24,444 72,890 272,898 
Prior periods1,311 (168)(73)1,070 
Payments and customer credits issued(171,534)(22,186)(64,812)(258,532)
Balance at June 30, 2022
$19,966 $10,965 $32,830 $63,761 
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 are primarily related to Ipsen Pharma SAS (Ipsen) and contract liabilities are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract assets and liabilities were as follows (in thousands):
June 30, 2022December 31, 2021
Contract assets (1)
$394 $1,665 
Contract liabilities:
Current portion (2)
$7,513 $7,814 
Long-term portion (3)
7,209 8,739 
Total contract liabilities$14,722 $16,553 
____________________
(1)    Presented in other long-term assets in the accompanying Condensed Consolidated Balance Sheets.
(2)    Presented in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.
(3)    Presented in the long-term portion of deferred revenues in the accompanying Condensed Consolidated Balance Sheets
During the six months ended June 30, 2022 and 2021, we recognized $4.5 million and $4.8 million, respectively, in revenues that were included in the beginning deferred revenues balance for those periods.
During the three and six months ended June 30, 2022, we recognized $59.4 million and $91.1 million, respectively, in revenues for performance obligations satisfied in previous periods. Such revenues were primarily related to royalty payments allocated to the license performance obligations for our collaborations with Ipsen, Takeda, Daiichi Sankyo and Genentech and the recognition of license revenue for the achievement of milestones during the three months ended June 30, 2022, allocated to the license performance obligations for our collaboration with Ipsen.
As of June 30, 2022, $89.3 million of the combined transaction prices for our Ipsen and Takeda collaborations were allocated to our research and development services performance obligations that had not yet been satisfied. See “Note 3. Collaboration Agreements and Business Development Activities” of the “Notes to Consolidated Financial Statements”
included in Part II, Item 8 of our Fiscal 2021 Form 10-K for additional information about the expected timing to satisfy these performance obligations.