Revenue Recognition

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
TRIKAFTA/KAFTRIO	$	1,555,772	$	960,308	$	4,004,600	$	2,773,256
SYMDEKO/SYMKEVI	81,415		156,178		339,969		501,066
ORKAMBI	184,561		225,919		624,224		692,038
KALYDECO	162,416		193,866		532,046		609,503
Total product revenues, net	$	1,984,164	$	1,536,271	$	5,500,839	$	4,575,863

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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
United States	$	1,382,892	$	1,222,565	$	3,893,245	$	3,620,467
Outside of the United States
Europe	518,826		251,366		1,382,701		766,438
Other	82,446		62,340		224,893		188,958
Total product revenues outside of the United States	601,272		313,706		1,607,594		955,396
Total product revenues, net	$	1,984,164	$	1,536,271	$	5,500,839	$	4,575,863

Contract Liabilities

The Company had contract liabilities of $104.1 million and $191.5 million as of September 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.