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REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Product Revenue

The following table provides information about disaggregated revenue by product for the years ended December 31, 2019, 2018 and 2017 (in thousands):
 
Years Ended December 31,
 
2019
 
2018
 
2017
Product sales, net
 
 
 
 
 
Makena
$
122,064

 
$
322,265

 
$
387,158

Feraheme
167,947

 
135,001

 
105,930

Intrarosa
21,417

 
16,218

 
1,816

Other
(238
)
 
368

 
741

Total
$
311,190

 
$
473,852

 
$
495,645


Total gross product sales were offset by product sales allowances and accruals for the years ended December 31, 2019, 2018 and 2017 as follows (in thousands):
 
Years Ended December 31,
 
2019
 
2018
 
2017
Gross product sales
$
955,693

 
$
974,330

 
$
920,061

Provision for product sales allowances and accruals:
 
 
 
 
 
Contractual adjustments
530,645

 
387,540

 
310,588

Governmental rebates
113,858

 
112,938

 
113,828

Total
644,503

 
500,478

 
424,416

Product sales, net
$
311,190

 
$
473,852

 
$
495,645



The following table summarizes the product revenue allowance and accrual activity for the years ended December 31, 2019, 2018 and 2017 (in thousands):
 
Contractual
 
Governmental
 
 
 
Adjustments
 
Rebates
 
Total
Balance at January 1, 2017
$
47,600

 
$
51,399

 
$
98,999

Current provisions relating to sales in current year
314,537

 
112,167

 
426,704

Adjustments relating to sales in prior years
(3,949
)
 
1,661

 
(2,288
)
Payments/returns relating to sales in current year
(253,545
)
 
(61,569
)
 
(315,114
)
Payments/returns relating to sales in prior years
(42,479
)
 
(53,060
)
 
(95,539
)
Balance at December 31, 2017
62,164

 
50,598

 
112,762

Current provisions relating to sales in current year
389,861

 
105,034

 
494,895

Adjustments relating to sales in prior years
(2,330
)
 
7,903

 
5,573

Payments/returns relating to sales in current year
(333,694
)
 
(75,920
)
 
(409,614
)
Payments/returns relating to sales in prior years
(58,802
)
 
(58,501
)
 
(117,303
)
Balance at December 31, 2018
57,199

 
29,114

 
86,313

Provisions related to current period sales
521,916

 
99,721

 
621,637

Adjustments related to prior period sales
8,774

 
14,137

 
22,911

Payments/returns relating to current period sales
(431,014
)
 
(60,218
)
 
(491,232
)
Payments/returns relating to prior period sales
(61,654
)
 
(41,435
)
 
(103,089
)
Balance at December 31, 2019
$
95,221

 
$
41,319

 
$
136,540



During the year ended December 31, 2019, we recorded adjustments of $14.1 million for Medicaid rebate claims received that related to prior period sales and $8.8 million for contractual adjustments related to prior period sales. We concluded that these adjustments represented changes in estimate during the year ended December 31, 2019 due to higher Medicaid and payer utilization and subsequent rebate obligations than anticipated based on our historical experience.

Collaboration Revenue

During the first quarter of 2019, in conjunction with the Perosphere transaction, we assumed responsibility for a clinical trial collaboration agreement with a pharmaceutical company. This agreement provided for milestone payments to us, provided we met certain clinical obligations in connection with our ciraparantag program. We also acquired $6.4 million of deferred revenue related to this agreement, which represented the fair value of our remaining performance obligations associated with upfront milestone payments received by Perosphere under this agreement prior to acquisition. We accounted for this agreement under ASC 606.

During the fourth quarter of 2019, we entered into a termination and settlement agreement (the “Termination Agreement”) with the pharmaceutical company which provided for a $10.0 million termination payment to us and stated that no party had any remaining performance obligations effective as of the termination date. The $10.0 million termination payment was received during the fourth quarter of 2019. Under ASC 606, the Termination Agreement met the definition of a contract modification and was accounted for as a cumulative catch-up adjustment at the time of modification.
During the year ended December 31, 2019, the $10.0 million termination payment and $6.4 million of deferred revenue were recognized as collaboration revenue in our consolidated statements of operations.