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Accounts Receivable Allowances
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
ACCOUNTS RECEIVABLE ALLOWANCES
ACCOUNTS RECEIVABLE ALLOWANCES
 
The nature of the Company’s business inherently involves, in the ordinary course, significant amounts and substantial volumes of transactions and estimates relating to allowances for product returns, chargebacks, rebates, doubtful accounts and discounts given to customers. This is a natural circumstance of the pharmaceutical industry and is not specific to the Company. Depending on the product, the customer, the specific terms of national supply contracts and the particular arrangements with the Company’s wholesaler customers, certain rebates, chargebacks and other credits are deducted from the Company’s accounts receivable. The process of claiming these deductions depends on wholesalers reporting to the Company the amount of deductions that were earned under the terms of the respective agreement with the customer (which in turn depends on the specific customer, each having its own pricing arrangement, which entitles it to a particular deduction). This process can lead to partial payments against outstanding invoices as the wholesalers take the claimed deductions at the time of payment.
 
With the exception of the provision for doubtful accounts, which is reflected as part of selling, general and administrative expense, the provisions for the following customer reserves are reflected as a reduction of revenues in the accompanying condensed consolidated statements of comprehensive income. Additionally, with the exception of administrative fees, which is included as a current liability in the accompany condensed consolidated balance sheet, the ending reserve balances are included in trade accounts receivable, net in the Company’s condensed consolidated balance sheets.

As of and for the quarter and year to date period ended June 30, 2016, the Company determined that in order to more closely align with internal analysis of associated reserves it would adjust the allowances disclosure to separately report rebates from chargebacks and rebates for both net trade accounts receivable and gross sale adjustments and to consolidate administrative fees and others with rebates for purposes of reporting of gross to net revenue reserves. All prior period information, including as of and for the three and six months ended June 30, 2015 have been recasted to reflect this disclosure change.
 
Net trade accounts receivable consists of the following (in thousands):
 
June 30,
2016
 
December 31,
2015
Gross accounts receivable
$
512,417

 
$
466,570

Less reserves for:
 
 
 
Chargebacks
(80,880
)
 
(91,844
)
Rebates
(153,768
)
 
(162,596
)
Product returns
(60,043
)
 
(48,333
)
Discounts and allowances
(9,835
)
 
(10,079
)
Advertising and promotions
(1,403
)
 
(1,518
)
Doubtful accounts
(1,483
)
 
(1,579
)
Trade accounts receivable, net
$
205,005

 
$
150,621



For the three and six month periods ended June 30, 2016 and 2015, the Company recorded the following adjustments to gross sales (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Gross sales
$
708,368

 
$
607,307

 
$
1,301,759

 
$
1,175,324

Less adjustments for:
 
 
 
 
 
 
 
Chargebacks
(290,218
)
 
(266,781
)
 
(509,593
)
 
(510,848
)
Rebates, administrative fees and others
(102,941
)
 
(100,013
)
 
(191,289
)
 
(175,250
)
Product returns
(18,799
)
 
(5,896
)
 
(23,086
)
 
(11,470
)
Discounts and allowances
(13,218
)
 
(11,622
)
 
(25,171
)
 
(25,667
)
Advertising, promotions and others
(2,458
)
 
(2,075
)
 
(3,539
)
 
(3,791
)
Revenues, net
$
280,734

 
$
220,920

 
$
549,081

 
$
448,298