Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Revenue

Revenues by Product

Product revenues, net consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
TRIKAFTA	$	917,715	$	—	$	1,812,948	$	—
SYMDEKO/SYMKEVI	171,729		361,832		344,888		682,107
ORKAMBI	231,981		316,441		466,119		609,448
KALYDECO	203,060		262,107		415,637		506,078
Total product revenues, net*	$	1,524,485	$	940,380	$	3,039,592	$	1,797,633

^* The preceding table does not include collaborative and royalty revenues.

Revenues by Geographic Location

Net product revenues are attributed to countries based on the location of the customer. Collaborative and royalty revenues are attributed to countries based on the location of the Company’s subsidiary associated with the collaborative arrangement related to such revenues. Total revenues from external customers and collaborators by geographic region consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
United States	$	1,210,314	$	700,618	$	2,397,902	$	1,341,721
Outside of the United States
Europe	257,681		180,196		515,072		347,947
Other	56,490		60,479		126,618		110,060
Total revenues outside of the United States	314,171		240,675		641,690		458,007
Total revenues	$	1,524,485	$	941,293	$	3,039,592	$	1,799,728

Contract Liabilities

The Company recorded contract liabilities of $70.7 million and $62.3 million as of June 30, 2020 and December 31, 2019, respectively, related to annual contracts with government-owned and supported customers in international markets that limit the amount of annual reimbursement the Company can receive. Upon exceeding the annual reimbursement amount, products are provided free of charge, which is a material right. These contracts include upfront payments and fees.  The Company defers a portion of the consideration received for shipments made up to the annual reimbursement limit as a portion of “Other current liabilities.” The deferred amount is recognized as revenue when the free products are shipped. The Company’s product revenue contracts include performance obligations that are one year or less.

The Company’s contract liabilities at the end of each fiscal year relate to contracts with annual reimbursement limits in international markets in which the annual period associated with the contract is not the same as the Company’s fiscal year. In these markets, the Company recognizes revenues related to performance obligations satisfied in previous years; however, these revenues do not relate to any performance obligations that were satisfied more than 12 months prior to the beginning of the current year.