Accounts Receivable, net

3 Months Ended

Sep. 30, 2022

Accounts Receivable, net

Accounts Receivable, net

Note 4. Accounts Receivable, net

Accounts receivable, net consisted of the following components at September 30, 2022 and June 30, 2022:

	September 30,		June 30,
(In thousands)	2022		2022
Gross accounts receivable	$	180,598	$	199,242
Less: Chargebacks reserve		(44,059)		(54,501)
Less: Rebates reserve		(28,677)		(26,921)
Less: Returns reserve		(39,294)		(46,478)
Less: Other deductions		(12,703)		(14,117)
Less: Allowance for doubtful accounts		(949)		(984)
Accounts receivable, net	$	54,916	$	56,241

For the three months ended September 30, 2022, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $86.1 million, $21.6 million, $5.3 million and $6.7 million, respectively. For the three months ended September 30, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $131.2 million, $28.8 million, $5.9 million and $19.0 million, respectively.

The following table identifies the activity and ending balances of each major category of revenue-related reserve for the three months ended September 30, 2022 and 2021:

Reserve Category
(In thousands)	Chargebacks		Rebates		Returns		Other		Total
Balance at June 30, 2022	$	54,501	$	48,489	$	46,478	$	14,117	$	163,585
Current period provision		86,149		21,575		5,347		6,746		119,817
Credits issued during the period		(96,591)		(19,636)		(12,531)		(8,160)		(136,918)
Balance at September 30, 2022	$	44,059	$	50,428	$	39,294	$	12,703	$	146,484

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		131,195		28,760		5,939		19,010		184,904
Credits issued during the period		(128,952)		(21,640)		(7,872)		(15,547)		(174,011)
Balance at September 30, 2021	$	71,807	$	42,417	$	36,462	$	18,968	$	169,654

For the three months ended September 30, 2022 and 2021, as a percentage of gross sales the provision for chargebacks was 45.1% and 46.1 %, the provision for rebates was 11.3% and 10.1%, the provision for returns was 2.8% and 2.1% and the provision for other adjustments was 3.5% and 6.7%, respectively.

The decrease in the reserve for chargebacks from June 30, 2022 to September 30, 2022 was primarily attributable to changes in product and customer sales mix. The reserve for returns also decreased during the first quarter of Fiscal 2023 due to the timing of payments as a result of the higher than average returns in prior periods.