Accounts Receivable, Sales and Allowances (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Net Trade Accounts Receivable

Trade accounts receivable, net consists of the following (in thousands):


	March 31, 2020		December 31, 2019
Gross accounts receivable⁽¹⁾	$	310,007	$	258,173
Less reserves for:
Chargebacks	(43,642)		(40,498)
Rebates	(38,284)		(42,515)
Product returns	(31,588)		(33,127)
Discounts and allowances	(7,393)		(5,816)
Advertising and promotions	(1,335)		(1,508)
Doubtful accounts	(547)		(536)
Trade accounts receivable, net	$	187,218	$	134,173

(1) The increase in the Gross accounts receivable balance as of March 31, 2020, when compared to the December 31, 2019 balance, was primarily due to increase in sales as it relates to the sale of an unapproved product that has since been discontinued and timing of account receivables collections. As it relates to the market exit and sale of an unapproved product discussed above, gross accounts receivable reflects only the portion of the contractual price that is probable that a significant reversal in the cumulative amount of revenue recognized will not occur, less any amounts collected as of March 31, 2020.

Schedule of Adjustments to Gross Sales

For the three month periods ended March 31, 2020 and 2019, the Company recorded the following adjustments to gross sales (in thousands):


	Three Months Ended March 31,
	2020		2019
Gross sales ⁽¹⁾	$	429,376	$	458,641
Less adjustments for:
Chargebacks ⁽²⁾	(156,275)		(205,394)
Rebates, administrative and other fees ⁽³⁾	(52,844)		(64,264)
Product returns ⁽⁴⁾	(4,259)		(11,902)
Discounts and allowances	(9,278)		(9,050)
Advertising, promotions and others	(2,027)		(2,160)
Revenues, net	$	204,693	$	165,871

(1) As it relates to the market exit and sale of an unapproved product discussed above, gross sales reflect only the portion of the contractual price that is probable that a significant reversal in the cumulative amount of revenue recognized will not occur.

(2) The decrease in chargebacks for the three month period ended March 31, 2020, as compared to the same period in 2019 was due to product mix as well as decreases in wholesale acquisition cost of certain products.

(3) The decrease in rebates, administrative fees and other expenses for the three month period ended March 31, 2020, compared to the same period in 2019 was primarily due to lower failure to supply claims, decreases in contract prices and product mix.

(4) The decrease in product returns for the three month periods ended March 31, 2020, as compared to the same period in 2019, was primarily due to the unfavorable outcome on disputed returns claims processed in 2019 that were related 2018 sales.