Accounts Receivable, net

6 Months Ended

Dec. 31, 2021

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

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

	December 31,		June 30,
(In thousands)	2021		2021
Gross accounts receivable	$	204,746	$	239,271
Less: Chargebacks reserve		(66,833)		(69,564)
Less: Rebates reserve		(18,497)		(16,272)
Less: Returns reserve		(36,770)		(38,395)
Less: Other deductions		(15,298)		(15,505)
Less: Allowance for doubtful accounts		(1,073)		(701)
Accounts receivable, net	$	66,275	$	98,834

For the three months ended December 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $114.7 million, $26.5 million, $7.4 million and $7.8 million, respectively. For the three months ended December 31, 2020, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $191.5 million, $43.4 million, $5.2 million and $20.8 million, respectively.

For the six months ended December 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $245.9 million, $55.3 million, $13.3 million and $26.8 million, respectively. For the six months ended December 31, 2020, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $379.8 million, $77.7 million, $10.7 million and $36.6 million, respectively.

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

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2021	$	69,564	$	35,297	$	38,395	$	15,505	$	158,761
Current period provision		245,900		55,262		13,305		26,761		341,228
Credits issued during the period		(248,631)		(46,857)		(14,930)		(26,968)		(337,386)
Balance at December 31, 2021	$	66,833	$	43,702	$	36,770	$	15,298	$	162,603

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		379,821		77,657		10,652		36,624		504,754
Credits issued during the period		(360,242)		(77,536)		(12,181)		(34,833)		(484,792)
Balance at December 31, 2020	$	81,456	$	62,832	$	39,267	$	19,348	$	202,903

For the three months ended December 31, 2021 and 2020, as a percentage of gross sales the provision for chargebacks was 47.8% and 49.3%, the provision for rebates was 11.1% and 11.2%, the provision for returns was 3.1% and 1.3% and the provision for other adjustments was 3.2% and 5.4%, respectively.

For the six months ended December 31, 2021 and 2020, as a percentage of gross sales the provision for chargebacks was 46.9% and 50.5%, the provision for rebates was 10.5% and 10.3%, the provision for returns was 2.5% and 1.4% and the provision for other adjustments was 5.1% and 4.9%, respectively.

The decreases in the reserves for chargebacks, rebates and returns from June 30, 2021 to December 31, 2021 was primarily attributable to lower net sales in the three months ended December 31, 2021 as compared to the three months ended June 30, 2021. The rebates reserve was also impacted by the lower net sales in the three months ended December 31, 2021; however, the reserve increased due to the timing of payments in Fiscal 2022. We have not recorded any material amounts in the current period related to reversals or additions of prior period reserves.