Rendering

Component: (Network and Table)
Network
2302301 - Disclosure - Accounts Receivable, Sales and Allowances (Tables)
(http://www.akorn.com/role/AccountsReceivableSalesAndAllowancesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000003116 (http://www.sec.gov/CIK)
Receivables [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Receivables [Abstract]
 
Schedule of Accounts, Notes, Loans and Financing Receivable
Trade accounts receivable, net consists of the following (in thousands):

 
December 31,
 
2016
 
2015
Gross accounts receivable
$
519,175

 
$
466,570

Less reserves for:
 
 
 
Chargebacks
(80,360
)
 
(91,844
)
Rebates (1)
(97,935
)
 
(162,596
)
Product returns
(43,689
)
 
(48,333
)
Discounts and allowances
(12,389
)
 
(10,079
)
Advertising and promotions
(688
)
 
(1,518
)
Doubtful accounts
(960
)
 
(1,579
)
Trade accounts receivable, net
$
283,154

 
$
150,621



(1) - The primary reason for the significant decrease in the reserve for rebates for the twelve months period ended December 31, 2016 compared to the balance at December 31, 2015 is due to an abnormal delay in processing the 2015 rebates driven in part by the 2014 Financial Restatement efforts. In 2016, the rebates reserve balance declined each subsequent quarter-end reporting period as the Company progressively returned to normal processing timing of rebate claims. The rebates processed during full year 2016 are disclosed under the caption “charges processed,” in the table below.

  
Schedule of Principal Transactions Revenue
For the years ended December 31, 2016, 2015 and 2014, the Company recorded the following adjustments to gross sales (in thousands):

 
Year ended December 31,
 
2016
 
2015
 
2014
Gross sales
$
2,891,267

 
$
2,511,693

 
$
1,433,603

Less adjustments for:
 
 
 
 
 
Chargebacks
(1,218,560
)
 
(1,065,244
)
 
(643,004
)
Rebates, administrative fees and others
(463,724
)
 
(367,514
)
 
(177,518
)
Product returns
(28,285
)
 
(34,272
)
 
(20,993
)
Discounts and allowances
(55,494
)
 
(50,384
)
 
(30,782
)
Advertising, promotions, and others
(8,361
)
 
(9,203
)
 
(6,258
)
Revenues, net
$
1,116,843

 
$
985,076

 
$
555,048

  
Activity in Allowance for Customer Deductions Accounts
The annual activity in the Company’s allowance for customer deductions accounts for the three years ended December 31, 2016 is as follows (in thousands):

 
Returns
 
Chargebacks
 
Rebates (1)
 
Discounts
 
Doubtful Accounts
 
Advert. & Promotions
 
Total
Balance at December 31, 2013
8,164

 
8,635

 
4,247

 
1,644

 
25

 
452

 
23,167

Provision
20,993

 
643,004

 
132,960

 
30,782

 
247

 
6,258

 
834,244

Additions from acquisitions
35,542

 
38,500

 
—

 
5,160

 
51

 
311

 
79,564

Charges processed
(20,053
)
 
(587,701
)
 
(41,533
)
 
(22,032
)
 
(14
)
 
(6,262
)
 
(677,595
)
Balance at December 31, 2014
$
44,646

 
$
102,438

 
$
95,674

 
$
15,554

 
$
309

 
$
759

 
$
259,380

Provision
34,272

 
1,065,244

 
295,787

 
50,384

 
840

 
9,203

 
1,455,730

Additions from acquisitions
—

 
—

 
—

 
—

 
291

 
—

 
291

Charges processed
(30,585
)
 
(1,075,838
)
 
(228,865
)
 
(55,859
)
 
139

 
(8,444
)
 
(1,399,452
)
Balance at December 31, 2015
$
48,333

 
$
91,844

 
$
162,596

 
$
10,079

 
$
1,579

 
$
1,518

 
$
315,949

Provision
28,285

 
1,218,560

 
384,074

 
55,494

 
—

 
8,361

 
1,694,774

Charges processed
(32,929
)
 
(1,230,044
)
 
(448,735
)
 
(53,184
)
 
(619
)
 
(9,191
)
 
(1,774,702
)
Balance at December 31, 2016
$
43,689

 
$
80,360

 
$
97,935

 
$
12,389

 
$
960

 
$
688

 
$
236,021



(1) - As provisions for rebates, administrative fees and others represent both contra-receivables and current liabilities, depending on the method of settlement, the cumulative provision relating to rebates, administrative fees and others is bifurcated as applicable based on the associated consolidated balance sheet classification. Accordingly, for the years ended December 31, 2016, 2015 and 2014, an additional $79.7 million, $71.7 million and $44.6 million, respectively, of provision was associated with administrative fees and others.