Accounts Receivable, net

9 Months Ended

Mar. 31, 2021

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

Accounts receivable, net consisted of the following components at March 31, 2021 and June 30, 2020:

	March 31,		June 30,
(In thousands)	2021		2020
Gross accounts receivable	$	258,652	$	271,557
Less: Chargebacks reserve		(74,729)		(61,877)
Less: Rebates reserve		(16,446)		(24,536)
Less: Returns reserve		(38,708)		(40,796)
Less: Other deductions		(13,449)		(17,557)
Less: Allowance for doubtful accounts		(629)		(1,103)
Accounts receivable, net	$	114,691	$	125,688

For the three months ended March 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $135.4 million, $27.1 million, $3.9 million and $18.6 million, respectively. For the three months ended March 31, 2020, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $201.0 million, $63.8 million, $6.4 million and $35.7 million, respectively.

For the nine months ended March 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $515.2 million, $104.8 million, $14.5 million and $55.2 million, respectively. For the nine months ended March 31, 2020, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $608.6 million, $180.6 million, $16.6 million and $77.2 million, respectively.

The following table identifies the activity and ending balances of each major category of revenue-related reserve for the nine months ended March 31, 2021 and 2020:

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2020	$	61,877	$	62,711	$	40,796	$	17,557	$	182,941
Current period provision		515,196		104,795		14,545		55,213		689,749
Credits issued during the period		(502,344)		(119,212)		(16,633)		(59,321)		(697,510)
Balance at March 31, 2021	$	74,729	$	48,294	$	38,708	$	13,449	$	175,180

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2019	$	89,567	$	78,274	$	55,554	$	18,128	$	241,523
Current period provision		608,570		180,574		16,600		77,167		882,911
Credits issued during the period		(637,664)		(181,465)		(24,466)		(52,508)		(896,103)
Balance at March 31, 2020	$	60,473	$	77,383	$	47,688	$	42,787	$	228,331

For the three months ending March 31, 2021 and 2020, as a percentage of gross sales the provision for chargebacks was 46.1% and 45.1%, the provision for rebates was 9.2% and 14.3%, the provision for returns was 1.3% and 1.4% and the provision for other adjustments was 6.3% and 8.0%, respectively.

For the nine months ending March 31, 2021 and 2020, as a percentage of gross sales the provision for chargebacks was 49.2% and 47.8%, the provision for rebates was 10.0% and 14.2%, the provision for returns was 1.4% and 1.3% and the provision for other adjustments was 5.3% and 6.1%, respectively.

The increase in the chargebacks reserve was primarily due to timing of sales and product mix partially offset by lower sales. The rebates reserve decreased primarily due to lower sales of Fluphenazine in Fiscal 2021, which had higher than average government-related rebates. Historically, we have not recorded any material amounts in the current period related to reversals or additions of prior period reserves.