Product Revenue and Reserves for Variable Consideration

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Product Revenue and Reserves for Variable Consideration

3. Product Revenue and Reserves for Variable Consideration

To date, the Company’s only source of product revenue has been product revenue from the U.S. sales of Auryxia, which it began recording on December 12, 2018 following the consummation of the Merger. Total net product revenue was $29.1 million and $52.2 million for the three and six months ended June 30, 2019, respectively. The following table summarizes activity in each of the product revenue allowance and reserve categories for the six months ended June 30, 2019 (in thousands):

	Chargebacks and Discounts			Rebates, Fees and other Deductions			Returns			Total
Balance at December 31, 2018	$	516		$	22,861		$	360		$	23,737
Current provisions related to sales in current year		3,306			44,708			1,596			49,610
Adjustments related to prior period sales		(22	)		479			—			457
Credits/payments made relating to sales in current    year		(2,392	)		(14,809	)		—			(17,201	)
Credits/payments made relating to prior period    sales		(928	)		(31,322	)		(1,663	)		(33,913	)
Balance at June 30, 2019	$	480		$	21,917		$	293		$	22,690

Chargebacks, discounts and returns are recorded as a direct reduction of revenue on the unaudited condensed consolidated statement of operations with a corresponding reduction to accounts receivable on the unaudited condensed consolidated balance sheets. Rebates, distribution-related fees, and other sales-related deductions are recorded as a reduction in revenue on the unaudited condensed consolidated statement of operations with a corresponding increase to accrued liabilities or accounts payable on the unaudited condensed consolidated balance sheets.