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Accounts Receivable, Sales and Allowances (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Trade accounts receivable, net consists of the following (in thousands):
 
December 31,
 
2019
 
2018
Gross accounts receivable (1)
$
258,173

 
$
308,305

Less reserves for:
 
 
 
Chargebacks (2)
(40,498
)
 
(55,312
)
Rebates (3)
(42,515
)
 
(55,963
)
Product returns
(33,127
)
 
(35,146
)
Discounts and allowances
(5,816
)
 
(6,561
)
Advertising and promotions
(1,508
)
 
(1,574
)
Doubtful accounts
(536
)
 
(623
)
Trade accounts receivable, net
$
134,173

 
$
153,126



(1) The reduction in the Gross accounts receivable balance as of December 31, 2019 when compared to the December 31, 2018 balance is due to the decline in gross sales in 2019 compared to the prior year.

(2) The decrease in the reserve for chargebacks as of December 31, 2019 compared to December 31, 2018 is primarily due to volume declines and changes in product and customer mix.

(3) The decrease in the reserve for rebates as of December 31, 2019 compared to December 31, 2018 is primarily due to volume declines, lower failure to supply penalties and timing of payments and settlements.
Schedule of Principal Transactions Revenue

For the years ended December 31, 2019, 2018 and 2017, the Company recorded the following adjustments to gross sales (in thousands):
 
Year ended December 31,
 
2019
 
2018
 
2017
Gross sales
$
1,674,196

 
$
1,887,862

 
$
2,351,071

Less adjustments for:
 
 
 
 
 
Chargebacks (1)
(678,204
)
 
(830,038
)
 
(953,326
)
Rebates, administrative fees and others (2)
(241,548
)
 
(297,802
)
 
(476,601
)
Product returns (3)
(30,699
)
 
(20,162
)
 
(26,874
)
Discounts and allowances
(32,555
)
 
(36,933
)
 
(45,292
)
Advertising, promotions, and others
(8,761
)
 
(8,909
)
 
(7,933
)
Revenues, net
$
682,429

 
$
694,018

 
$
841,045



(1) The decrease in chargeback expense in 2019, compared to 2018 was due to volume declines as well as changes in product and customer mix.

(2) The decrease in rebates, administrative fees and other expenses in 2019, compared to 2018 was primarily due to volume declines and lower failure to supply penalties.

(3) The dollar increase in 2019, compared to 2018 was primarily due to unfavorable outcome on disputed returns claims.
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, 2019, 2018 and 2017 is as follows (in thousands):
 
Chargebacks
 
Rebates (1)
 
Returns
 
Discounts
 
Doubtful Accounts
 
Advertising & Promotions
 
Total
Balance at December 31, 2016
$
80,360

 
$
97,935

 
$
43,689

 
$
12,389

 
$
960

 
$
688

 
$
236,021

Provision
953,326

 
416,125

 
26,874

 
45,292

 
—

 
7,933

 
1,449,550

Charges processed
(959,702
)
 
(402,115
)
 
(28,876
)
 
(49,902
)
 
(280
)
 
(7,320
)
 
(1,448,195
)
Balance at December 31, 2017
$
73,984

 
$
111,945

 
$
41,687

 
$
7,779

 
$
680

 
$
1,301

 
$
237,376

Provision
830,038

 
257,417

 
20,162

 
36,933

 
—

 
8,909

 
1,153,459

Charges processed
(848,710
)
 
(313,399
)
 
(26,703
)
 
(38,151
)
 
(57
)
 
(8,636
)
 
(1,235,656
)
Balance at December 31, 2018
$
55,312

 
$
55,963

 
$
35,146

 
$
6,561

 
$
623

 
$
1,574

 
$
155,179

Provision
678,204

 
218,635

 
30,699

 
32,555

 
—

 
8,761

 
968,854

Charges processed
(693,018
)
 
(232,083
)
 
(32,718
)
 
(33,300
)
 
(87
)
 
(8,827
)
 
(1,000,033
)
Balance at December 31, 2019
$
40,498

 
$
42,515

 
$
33,127

 
$
5,816

 
$
536

 
$
1,508

 
$
124,000



(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, 2019, 2018 and 2017, an additional $22.9 million, $40.4 million and $60.5 million, respectively, of provision was associated with administrative fees and others.