Accounts Receivable, net

6 Months Ended

Dec. 31, 2020

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

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

	December 31,		June 30,
(In thousands)	2020		2020
Gross accounts receivable	$	320,337	$	271,557
Less: Chargebacks reserve		(81,456)		(61,877)
Less: Rebates reserve		(19,041)		(24,536)
Less: Returns reserve		(39,267)		(40,796)
Less: Other deductions		(19,348)		(17,557)
Less: Allowance for doubtful accounts		(1,094)		(1,103)
Accounts receivable, net	$	160,131	$	125,688

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 three months ended December 31, 2019, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $199.6 million, $58.3 million, $6.5 million and $28.7 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. For the six months ended December 31, 2019, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $407.5 million, $116.8 million, $10.2 million and $41.4 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, 2020 and 2019:

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

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		407,523		116,803		10,217		41,424		575,967
Credits issued during the period		(427,293)		(119,701)		(11,120)		(33,450)		(591,564)
Balance at December 31, 2019	$	69,797	$	75,376	$	54,651	$	26,102	$	225,926

For the three months ending December 31, 2020 and 2019, as a percentage of gross sales the provision for chargebacks was 49.3% and 47.2%, the provision for rebates was 11.2% and 13.8%, the provision for returns was 1.3% and 1.5% and the provision for other adjustments was 5.4% and 6.8%, respectively.

For the six months ending December 31, 2020 and 2019, as a percentage of gross sales the provision for chargebacks was 50.5% and 49.3%, the provision for rebates was 10.3% and 14.1%, the provision for returns was 1.4% and 1.2% and the provision for other adjustments was 4.9% and 5.0%, respectively.

The increase in the chargebacks reserve was primarily due to timing of sales and product mix. The rebates reserve also increased due to the timing of sales and product mix but was offset by 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. If the Company were to record a material reversal or addition of any prior period reserve amount, it would be separately disclosed.