Revenue Recognition

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
	(in millions)
TRIKAFTA/KAFTRIO	$	2,240.4	$	1,893.2	$	4,337.1	$	3,654.8
KALYDECO	125.3		138.7		250.3		277.7
ORKAMBI	96.3		121.6		218.8		253.7
SYMDEKO/SYMKEVI	31.2		42.7		61.8		107.5
Total product revenues, net	$	2,493.2	$	2,196.2	$	4,868.0	$	4,293.7

Product Revenues by Geographic Location

“Product revenues, net” by geographic region, based on the location of the customer, consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
United States	$	1,507.8	$	1,415.1	$	2,911.6	$	2,783.3
Outside of the United States
Europe	800.0		655.5		1,607.2		1,287.8
Other	185.4		125.6		349.2		222.6
Total product revenues outside of the United States	985.4		781.1		1,956.4		1,510.4
Total product revenues, net	$	2,493.2	$	2,196.2	$	4,868.0	$	4,293.7

Contract Liabilities

We had contract liabilities of $179.1 million and $159.6 million as of June 30, 2023 and December 31, 2022, respectively, related to annual contracts with government-owned and supported customers in international markets that limit the amount of annual reimbursement we 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. We defer 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. Our product revenue contracts include performance obligations that are one year or less.

Our 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 our fiscal year. In these markets, we recognize 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.