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Revenues
 9 Months Ended
Sep. 30, 2022
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,
2022202120222021
Product revenues:
Gross product revenues$496,141 $357,462 $1,427,451 $1,051,871 
Discounts and allowances(129,659)(94,345)(403,627)(277,294)
Net product revenues366,482 263,117 1,023,824 774,577 
Collaboration revenues:
License revenues34,384 49,694 123,977 116,862 
Collaboration services revenues10,872 15,612 39,344 92,391 
Total collaboration revenues45,256 65,306 163,321 209,253 
Total revenues$411,738 $328,423 $1,187,145 $983,830 
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,
2022202120222021
Affiliates of McKesson Corporation18 %15 %18 %15 %
Affiliates of CVS Health Corporation19 %16 %17 %15 %
Affiliates of AmerisourceBergen Corporation18 %16 %16 %14 %
Ipsen Pharma SAS8 %12 %11 %17 %
Accredo Health, Incorporated11 %9 %10 %8 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
September 30, 2022December 31, 2021
Affiliates of McKesson Corporation23 %10 %
Ipsen Pharma SAS21 %50 %
Affiliates of AmerisourceBergen Corporation20 %11 %
Affiliates of CVS Health Corporation15 %9 %
Revenues by geographic region were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
U.S.$369,480 $266,436 $1,033,160 $783,583 
Europe34,818 38,095 131,585 162,822 
Japan7,440 23,892 22,400 37,425 
Total revenues$411,738 $328,423 $1,187,145 $983,830 
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 September 30,Nine Months Ended September 30,
2022202120222021
CABOMETYX$361,385 $259,791 $1,003,356 $759,000 
COMETRIQ5,097 3,326 20,468 15,577 
Net product revenues$366,482 $263,117 $1,023,824 $774,577 
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 period261,143 36,847 105,280 403,270 
Prior periods632 (169)(106)357 
Payments and customer credits issued(255,002)(32,765)(98,996)(386,763)
Balance at September 30, 2022
$21,398 $12,788 $31,003 $65,189 
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):
September 30, 2022December 31, 2021
Contract assets (1)
$364 $1,665 
Contract liabilities:
Current portion (2)
$6,932 $7,814 
Long-term portion (3)
6,491 8,739 
Total contract liabilities$13,423 $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 nine months ended September 30, 2022 and 2021, we recognized $6.6 million and $6.8 million, respectively, in revenues that were included in the beginning deferred revenues balance for those periods.
During the three and nine months ended September 30, 2022, we recognized $33.9 million and $125.0 million, respectively, in revenues for performance obligations satisfied in previous periods, as compared to $48.4 million and $116.2 million for the corresponding prior year 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 second quarter of 2022, allocated to the license performance obligations for our collaboration with Ipsen.
As of September 30, 2022, $83.1 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.