Accounts Receivable, Sales and Allowances (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Net Trade Accounts Receivable

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


	June 30, 2020		December 31, 2019
Gross accounts receivable⁽¹⁾	$	248,938	$	258,173
Less reserves for:
Chargebacks	(40,093)		(40,498)
Rebates	(36,717)		(42,515)
Product returns	(33,049)		(33,127)
Discounts and allowances	(5,810)		(5,816)
Advertising and promotions	(1,672)		(1,508)
Doubtful accounts	(265)		(536)
Trade accounts receivable, net	$	131,332	$	134,173

(1) As it relates to the market exit and sale of the unapproved product discussed above, gross accounts receivable reflects only the portion of the contractual price that is probable such that a significant reversal in the cumulative amount of revenue recognized will not occur, less any amounts collected as of June 30, 2020.

Schedule of Adjustments to Gross Sales

For the three and six month periods ended June 30, 2020 and 2019, the Company recorded the following adjustments to gross sales (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Gross sales ⁽¹⁾	$	300,880	$	466,009	$	730,256	$	924,649
Less adjustments for:
Chargebacks ⁽²⁾	(121,453)		(192,717)		(277,728)		(398,111)
Rebates, administrative and other fees ⁽³⁾	(42,358)		(77,969)		(95,202)		(142,233)
Product returns ⁽⁴⁾	(8,025)		(5,471)		(12,284)		(17,373)
Discounts and allowances	(6,087)		(9,025)		(15,365)		(18,075)
Advertising, promotions and others	(2,647)		(2,770)		(4,674)		(4,929)
Revenues, net	$	120,310	$	178,057	$	325,003	$	343,928

(1) As it relates to the market exit and sale of an unapproved product discussed above, gross sales for the six months ended June 30, 2020, 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 and six month periods ended June 30, 2020, as compared to the same periods in 2019 was due to volume declines and 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 and six month periods ended June 30, 2020, compared to the same periods in 2019 was primarily due to volume declines, lower failure to supply claims, decreases in contract prices and product mix.

(4) The increase in product returns for the three month period ended June 30, 2020, as compared to the same period in 2019, was primarily due to higher returns processed. The decrease in product returns for the six month period ended June 30, 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.