Accounts Receivable, net

6 Months Ended

Dec. 31, 2022

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

Accounts receivable, net consisted of the following components at December 31, 2022 and June 30, 2022:

	December 31,		June 30,
(In thousands)	2022		2022
Gross accounts receivable	$	187,187	$	199,242
Less: Chargebacks reserve		(39,739)		(54,501)
Less: Rebates reserve		(16,139)		(26,921)
Less: Returns reserve		(37,190)		(46,478)
Less: Other deductions		(12,826)		(14,117)
Less: Allowance for expected credit losses		(949)		(984)
Accounts receivable, net	$	80,344	$	56,241

For the three months ended December 31, 2022, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $94.7 million, $25.7 million, $8.2 million and $7.2 million, respectively. 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 six months ended December 31, 2022, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $180.9 million, $47.3 million, $13.5 million and $13.9 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.

The following table identifies the activity and ending balances of each major category of revenue-related reserve for the six months ended December 31, 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		180,856		47,322		13,546		13,931		255,655
Credits issued during the period		(195,618)		(58,295)		(22,834)		(15,222)		(291,969)
Balance at December 31, 2022	$	39,739	$	37,516	$	37,190	$	12,826	$	127,271

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

For the three months ended December 31, 2022 and 2021, as a percentage of gross sales the provision for chargebacks was 44.8% and 47.8%, the provision for rebates was 12.2% and 11.1%, the provision for returns was 3.9% and 3.1% and the provision for other adjustments was 3.4% and 3.2%, respectively.

For the six months ended December 31, 2022 and 2021, as a percentage of gross sales the provision for chargebacks was 44.9% and 46.9%, the provision for rebates was 11.8% and 10.5%, the provision for returns was 3.4% and 2.5% and the provision for other adjustments was 3.5% and 5.1%, respectively.

The decrease in the reserve for chargebacks from June 30, 2022 to December 31, 2022 was primarily attributable to changes in product and customer sales mix. Additionally, the reserve for rebates and returns decreased during the first six months of Fiscal 2023 due to the timing of payments. Higher than average returns in prior periods also contributed to the decrease in the reserve for returns during the period.