Accounts Receivable, net

9 Months Ended

Mar. 31, 2022

Accounts Receivable, net

Accounts Receivable, net

Note 5. Accounts Receivable, net

Accounts receivable, net consisted of the following components at March 31, 2022 and June 30, 2021:

	March 31,		June 30,
(In thousands)	2022		2021
Gross accounts receivable	$	202,112	$	239,271
Less: Chargebacks reserve		(58,601)		(69,564)
Less: Rebates reserve		(20,342)		(16,272)
Less: Returns reserve		(41,977)		(38,395)
Less: Other deductions		(16,145)		(15,505)
Less: Allowance for doubtful accounts		(1,073)		(701)
Accounts receivable, net	$	63,974	$	98,834

For the three months ended March 31, 2022, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $93.8 million, $22.1 million, $12.7 million and $11.9 million, respectively. For the three months ended March 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $135.4 million, $27.1 million, $3.9 million and $18.6 million, respectively.

For the nine months ended March 31, 2022, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $339.7 million, $77.4 million, $26.0 million and $38.6 million, respectively. For the nine months ended March 31, 2021, the Company recorded a provision for chargebacks, rebates (including rebates presented as rebates payable), returns and other deductions of $515.2 million, $104.8 million, $14.5 million and $55.2 million, respectively.

The following table identifies the activity and ending balances of each major category of revenue-related reserve for the nine months ended March 31, 2022 and 2021:

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		339,663		77,352		25,979		38,625		481,619
Credits issued during the period		(350,626)		(67,975)		(22,397)		(37,985)		(478,983)
Balance at March 31, 2022	$	58,601	$	44,674	$	41,977	$	16,145	$	161,397

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		515,196		104,795		14,545		55,213		689,749
Credits issued during the period		(502,344)		(119,212)		(16,633)		(59,321)		(697,510)
Balance at March 31, 2021	$	74,729	$	48,294	$	38,708	$	13,449	$	175,180

For the three months ended March 31, 2022 and 2021, as a percentage of gross sales the provision for chargebacks was 43.4% and 46.1 %, the provision for rebates was 10.2% and 9.2%, the provision for returns was 5.9% and 1.3% and the provision for other adjustments was 5.5% and 6.3%, respectively.

For the nine months ended March 31, 2022 and 2021, as a percentage of gross sales the provision for chargebacks was 45.9% and 49.2%, the provision for rebates was 10.5% and 10.0%, the provision for returns was 3.5% and 1.4% and the provision for other adjustments was 5.2% and 5.3%, respectively.

Overall reserves increased primarily as a result of the timing of rebate payments as well as higher than average prior period returns reserve adjustments of certain products in the endocrinology medical indication category. The increase was partially offset by lower net sales in the three months ended March 31, 2022 as compared to the three months ended June 30, 2021.