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Revenues
 12 Months Ended
Dec. 29, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
 Year Ended December 31,
 202320222021
Product revenues:
Gross product revenues
$2,272,533 $1,951,169 $1,452,913 
Discounts and allowances
(643,654)(549,926)(375,657)
Net product revenues1,628,879 1,401,243 1,077,256 
Collaboration revenues:
License revenues
178,635 162,056 249,956 
Collaboration services revenues
22,694 47,763 107,758 
Total collaboration revenues201,329 209,819 357,714 
Total revenues$1,830,208 $1,611,062 $1,434,970 
Net product revenues and license revenues are recorded in accordance with 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 Topic 808. 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):
Year Ended December 31,
202320222021
CABOMETYX
$1,614,942 $1,375,909 $1,054,050 
COMETRIQ
13,937 25,334 23,206 
Net product revenues
$1,628,879 $1,401,243 $1,077,256 
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,
 
202320222021
Affiliates of AmerisourceBergen Corporation17 %18 %14 %
Affiliates of McKesson Corporation17 %17 %14 %
Affiliates of CVS Health Corporation17 %17 %14 %
Accredo Health, Incorporated12 %10 %9 %
Affiliates of Optum Specialty Pharmacy10 %10 %8 %
Ipsen Pharma SAS8 %10 %21 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
 
December 31,
 
20232022
Affiliates of McKesson Corporation21 %22 %
Affiliates of CVS Health Corporation20 %18 %
Ipsen Pharma SAS19 %20 %
Affiliates of AmerisourceBergen Corporation17 %18 %
Cardinal Health, Inc.11 %11 %
Total revenues by geographic region were as follows (in thousands):
Year Ended December 31,
202320222021
U.S.
$1,645,749 $1,413,743 $1,089,396 
Europe
144,969 168,592 302,073 
Japan
39,490 28,727 43,501 
Total revenues
$1,830,208 $1,611,062 $1,434,970 
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, 2021
$14,625 $8,875 $24,825 $48,325 
Provision related to sales made in:
Current period355,865 50,312 143,516 549,693 
Prior periods611 (169)(209)233 
Payments and customer credits issued(344,220)(44,094)(132,706)(521,020)
Balance at December 31, 2022
26,881 14,924 35,426 77,231 
Provision related to sales made in:
Current period419,975 56,349 170,788 647,112 
Prior periods295 (1,222)(2,531)(3,458)
Payments and customer credits issued(421,930)(50,330)(163,785)(636,045)
Balance at December 31, 2023
$25,221 $19,721 $39,898 $84,840 
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 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):
 
December 31,
 
20232022
Contract assets(1)
$1,321 $1,659 
Contract liabilities:
Current portion(2)
$5,406 $7,488 
Long-term portion(3)
5,524 6,582 
Total contract liabilities$10,930 $14,070 
____________________
(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 other long-term liabilities in the accompanying Consolidated Balance Sheets.
During the years ended December 31, 2023, 2022 and 2021, we recognized $6.9 million, $8.1 million and $8.5 million, respectively, in revenues that were included in the beginning deferred revenues balance for those years.
During the years ended December 31, 2023, 2022 and 2021, we recognized $179.7 million, $161.6 million and $148.7 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, 2023, $57.8 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.