Aptevo Therapeutics Inc. Revenue Disclosure
Note 15. Revenue Reserves
The following table summarizes activity in each of our receivable-related allowances and revenue-related liabilities for the years ended December 31, 2019 and December 31, 2018:
|
(in thousands) |
|
Chargebacks and Rebates |
|
|
Distribution Fees, Cash Discounts and Patient Assistance |
|
||
|
Balance at December 31, 2018 |
|
$ |
(1,323 |
) |
|
$ |
(865 |
) |
|
Provision related to current period sales |
|
|
(3,917 |
) |
|
|
(2,492 |
) |
|
Credit or payments made during the period |
|
|
3,394 |
|
|
|
2,631 |
|
|
Balance at December 31, 2019 |
|
$ |
(1,845 |
) |
|
$ |
(726 |
) |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Chargebacks |
|
|
Distribution/Data Fees |
|
||
|
Balance at December 31, 2017 |
|
$ |
(428 |
) |
|
$ |
(240 |
) |
|
Provision related to current period sales |
|
|
(2,515 |
) |
|
|
(1,879 |
) |
|
Credit or payments made during the period |
|
|
1,620 |
|
|
|
1,254 |
|
|
Balance at December 31, 2018 |
|
$ |
(1,323 |
) |
|
$ |
(865 |
) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2019 | Mar 25, 2020 | Showing above |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 13, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.