Revenue Recognition

6 Months Ended

Jun. 30, 2021

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,
	2021		2020		2021		2020
	(in thousands)
TRIKAFTA/KAFTRIO	$	1,255,611	$	917,715	$	2,448,828	$	1,812,948
SYMDEKO/SYMKEVI	133,505		171,729		258,554		344,888
ORKAMBI	220,966		231,981		439,663		466,119
KALYDECO	183,288		203,060		369,630		415,637
Total product revenues, net	$	1,793,370	$	1,524,485	$	3,516,675	$	3,039,592

Product Revenues by Geographic Location

Total net product revenues by geographic region, based on the location of the customer, consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
United States	$	1,256,920	$	1,210,314	$	2,510,353	$	2,397,902
Outside of the United States
Europe	458,906		257,681		863,875		515,072
Other	77,544		56,490		142,447		126,618
Total product revenues outside of the United States	536,450		314,171		1,006,322		641,690
Total product revenues, net	$	1,793,370	$	1,524,485	$	3,516,675	$	3,039,592

Contract Liabilities

The Company had contract liabilities of $122.6 million and $191.5 million as of June 30, 2021 and December 31, 2020, 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.