Revenue Recognition

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands)
TRIKAFTA/KAFTRIO	$	960,308	$	—	$	2,773,256	$	—
SYMDEKO/SYMKEVI	156,178		403,714		501,066		1,085,821
ORKAMBI	225,919		296,711		692,038		906,159
KALYDECO	193,866		249,403		609,503		755,481
Total product revenues, net*	$	1,536,271	$	949,828	$	4,575,863	$	2,747,461

* 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 outside of the United States 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands)
United States	$	1,224,565	$	710,323	$	3,622,467	$	2,052,044
Outside of the United States
Europe	251,366		184,845		766,438		532,809
Other	62,340		54,660		188,958		164,703
Total revenues outside of the United States	313,706		239,505		955,396		697,512
Total revenues	$	1,538,271	$	949,828	$	4,577,863	$	2,749,556

Contract Liabilities

The Company had contract liabilities of $94.8 million and $62.3 million as of September 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.