Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contracts with Customers

Summary of product revenue provision and allowance

					Trade
	Rebates and		Product		Allowances and
Three months ended March 31, 2020	Incentives (1)		Returns (2)		Chargebacks (3)
Balance at December 31, 2019	$	129,901	$	27,648	$	14,020
Provision related to current period sales		83,573		3,406		18,770
Changes in estimate related to prior period sales		1,131		—		49
Credits/payments made		(73,075)		(698)		(18,625)
Balance at March 31, 2020	$	141,530	$	30,356	$	14,214

					Trade
	Rebates and		Product		Allowances and
Three months ended March 31, 2019	Incentives (1)		Returns (2)		Chargebacks (3)
Balance at December 31, 2018	$	129,318	$	15,465	$	14,841
Provision related to current period sales		65,881		4,992		15,658
Changes in estimate related to prior period sales		(3,017)		—		—
Credits/payments made		(59,295)		(1,016)		(15,728)
Balance at March 31, 2019	$	132,887	$	19,441	$	14,771

(1)	Provisions for rebates and incentives includes managed care rebates, government rebates and co-pay program incentives. Provisions for rebates and incentives are deducted from gross revenues at the time revenues are recognized and are included in accrued rebates, returns and discounts in the Company’s Consolidated Condensed Balance Sheets.
(2)	Provisions for product returns are deducted from gross revenues at the time revenues are recognized and are included in accrued rebates, returns and discounts in the Company’s Condensed Consolidated Balance Sheets.
(3)		Provisions for trade allowances and chargebacks include fees for distribution service fees, prompt pay discounts, and chargebacks. Trade allowances and chargebacks are deducted from gross revenue at the time revenues are recognized and are recorded as a reduction to accounts receivable in the Company’s Condensed Consolidated Balance Sheets.

Schedule of disaggregation of revenue

	Three months ended March 31,
	2020		2019
Xtampza ER	$	31,507	$	25,134
Nucynta Products		45,004		49,382
Total product revenues, net	$	76,511	$	74,516