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Accounts Receivable, Sales and Allowances
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Accounts Receivable, Sales and Allowances Accounts Receivable, Sales and 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 typical of the pharmaceutical industry and is not necessarily specific to the Company. Depending on the product, the end-user 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 end-user customer (which in turn depends on the specific end-user customer, each having its own pricing arrangement that entitles it to a particular deduction). This process can lead to partial payments to the Company 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 (Loss). Additionally, with the exception of administrative fees and others, which is included as a current liability, the ending reserve balances are included in trade accounts receivable, net in the Company’s Condensed Consolidated Balance Sheets.
 
Trade accounts receivable, net consists of the following (in thousands):
 
March 31,
2019
 
December 31,
2018
Gross accounts receivable (1)
$
361,065

 
$
308,305

Less reserves for:
 
 
 
Chargebacks (2)
(67,474
)
 
(55,312
)
Rebates (2)
(74,723
)
 
(55,963
)
Product returns
(34,411
)
 
(35,146
)
Discounts and allowances
(7,740
)
 
(6,561
)
Advertising and promotions
(1,769
)
 
(1,574
)
Doubtful accounts
(623
)
 
(623
)
Trade accounts receivable, net
$
174,325

 
$
153,126



(1) The increase in the Gross accounts receivable balance as of March 31, 2019, when compared to the December 31, 2018 balance is due to higher accounts receivable carryover due to timing of sales during the compared period.

(2) The increase in the Chargebacks and Rebates balances as of March 31, 2019, when compared to the December 31, 2018 balance were primarily due to payment timing, product mix, customer mix and higher wholesaler inventory.

For the three month periods ended March 31, 2019 and 2018, the Company recorded the following adjustments to gross sales (in thousands):
 
Three Months Ended
March 31,
 
2019
 
2018
Gross sales
$
458,641

 
$
520,533

Less adjustments for:
 
 
 
Chargebacks (1)
(205,394
)
 
(223,963
)
Rebates, administrative and other fees (1)
(64,264
)
 
(92,279
)
Product returns (2)
(11,902
)
 
(7,121
)
Discounts and allowances
(9,050
)
 
(10,238
)
Advertising, promotions and others
(2,160
)
 
(2,869
)
Revenues, net
$
165,871

 
$
184,063



(1) The decreases in chargebacks and rebates, administrative and other fees for the three month periods ended March 31, 2019 as compared to the same periods in 2018, were primarily due to volume declines as well as product mix and customer mix.
(2) The increase in product returns for the three month periods ended March 31, 2019, as compared to the same periods in 2018, was primarily due to the timing of returns processing.