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Accounts Receivable, Sales and Allowances (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Trade accounts receivable, net consists of the following (in thousands):

 
December 31,
 
2018
 
2017
Gross accounts receivable (1)
$
308,305

 
$
378,759

Less reserves for:
 
 
 
Chargebacks (2)
(55,312
)
 
(73,984
)
Rebates (2)
(55,963
)
 
(111,945
)
Product returns
(35,146
)
 
(41,687
)
Discounts and allowances
(6,561
)
 
(7,779
)
Advertising and promotions
(1,574
)
 
(1,301
)
Doubtful accounts
(623
)
 
(680
)
Trade accounts receivable, net
$
153,126

 
$
141,383



(1) The reduction in the Gross accounts receivable balance as of December 31, 2018 when compared to the December 31, 2017 balance is due to the decline in Gross sales in the fourth quarter of 2018 compared to the fourth quarter of 2017.

(2) The reductions in the reserve for chargebacks and in the reserve for rebates as of December 31, 2018 compared to December 31, 2017 is primarily due to payment timing, product mix, customer mix and lower wholesaler inventory. Additionally, a change in contractual terms with a major customer in the first quarter of 2018 resulted in an increase in chargebacks and a decrease in rebates, which is also a contributing factor in the comparability between the two periods compared.
Schedule of Principal Transactions Revenue
For the years ended December 31, 2018, 2017 and 2016, the Company recorded the following adjustments to gross sales (in thousands):

 
Year ended December 31,
 
2018
 
2017
 
2016
Gross sales
$
1,887,862

 
$
2,351,071

 
$
2,891,267

Less adjustments for:
 
 
 
 
 
Chargebacks (1)
(830,038
)
 
(953,326
)
 
(1,218,560
)
Rebates, administrative fees and others (1)
(297,802
)
 
(476,601
)
 
(463,724
)
Product returns
(20,162
)
 
(26,874
)
 
(28,285
)
Discounts and allowances
(36,933
)
 
(45,292
)
 
(55,494
)
Advertising, promotions, and others
(8,909
)
 
(7,933
)
 
(8,361
)
Revenues, net
$
694,018

 
$
841,045

 
$
1,116,843



(1) The decreases in chargebacks and rebates, administrative and other fees for the twelve month period ended December 31, 2018 compared to the same period in 2017, were primarily due to product mix, customer mix, volume declines, and price erosion due to increased industry pricing pressure and the competitive nature of our business. Additionally, a change in contractual terms with a major customer in the first quarter of 2018 resulted in an increase in chargebacks and a decrease in rebates, which is also a contributing factor in the variances between the two periods compared.
Activity in Allowance for Customer Deductions Accounts
The annual activity in the Company’s allowance for customer deductions accounts for the three years ended December 31, 2018 is as follows (in thousands):

 
Returns
 
Chargebacks
 
Rebates (1)
 
Discounts
 
Doubtful Accounts
 
Advertising & Promotions
 
Total
Balance at December 31, 2015
$
48,333

 
$
91,844

 
$
162,596

 
$
10,079

 
$
1,579

 
$
1,518

 
$
315,949

Provision
28,285

 
1,218,560

 
384,074

 
55,494

 
—

 
8,361

 
1,694,774

Charges processed
(32,929
)
 
(1,230,044
)
 
(448,735
)
 
(53,184
)
 
(619
)
 
(9,191
)
 
(1,774,702
)
Balance at December 31, 2016
$
43,689

 
$
80,360

 
$
97,935

 
$
12,389

 
$
960

 
$
688

 
$
236,021

Provision
26,874

 
953,326

 
416,125

 
45,292

 
—

 
7,933

 
1,449,550

Charges processed
(28,876
)
 
(959,702
)
 
(402,115
)
 
(49,902
)
 
(280
)
 
(7,320
)
 
(1,448,195
)
Balance at December 31, 2017
$
41,687

 
$
73,984

 
$
111,945

 
$
7,779

 
$
680

 
$
1,301

 
$
237,376

Provision
20,162

 
830,038

 
257,417

 
36,933

 
—

 
8,909

 
1,153,459

Charges processed
(26,703
)
 
(848,710
)
 
(313,399
)
 
(38,151
)
 
(57
)
 
(8,636
)
 
(1,235,656
)
Balance at December 31, 2018
$
35,146

 
$
55,312

 
$
55,963

 
$
6,561

 
$
623

 
$
1,574

 
$
155,179



(1) As provisions for rebates, administrative fees and others represent both contra-receivables and current liabilities, depending on the method of settlement, the cumulative provision relating to rebates, administrative fees and others is bifurcated as applicable based on the associated consolidated balance sheet classification. Accordingly, for the years ended December 31, 2018, 2017 and 2016, an additional $40.4 million, $60.5 million and $79.7 million, respectively, of provision was associated with administrative fees and others.