Provisions
Provisions are made and recorded as reductions to revenue in order to estimate the liabilities arising from chargebacks, rebates, returns and other price adjustments, as explained in Note 4.
The following table describes movements in the Company’s provisions balance by nature of provision:
|
| | | | | | | | | | |
| Chargebacks/Rebates/Co-pay |
| Returns |
| Inventory management |
| Prompt pay |
| Total |
|
Balance, January 1, 2016 | 20,880 |
| 7,538 |
| 3,495 |
| 816 |
| 32,729 |
|
Additions | 106,331 |
| 30,081 |
| 22,395 |
| 6,961 |
| 165,768 |
|
Utilization | (112,495 | ) | (29,293 | ) | (22,498 | ) | (6,977 | ) | (171,263 | ) |
Balance, December 31, 2016 | 14,716 |
| 8,326 |
| 3,392 |
| 800 |
| 27,234 |
|
| | | | | |
Additions | 100,450 |
| 32,440 |
| 22,015 |
| 5,347 |
| 160,252 |
|
Utilization | (98,571 | ) | (29,700 | ) | (19,524 | ) | (5,595 | ) | (153,390 | ) |
Balance, December 31, 2017 | 16,595 |
| 11,066 |
| 5,883 |
| 552 |
| 34,096 |
|
Invoices received for such charges and estimates are shown in the accounts payable when received. The provision is for the uninvoiced portion of the charges and estimates. Payments are expected within 12 months from the balance sheet date.
