definiens: means all revenues recorded by or on behalf of [COMPANY] or its Affiliates or Sublicensees from sales of Licensed Products in the Field of Use in the Territory to independent or unaffiliated Third Party purchasers of such Licensed Products . The permitted deductions booked on an accrual basis by [COMPANY], its Affiliates and/or its Sublicensees under their respective accounting standards to calculate the recorded net sales from gross sales are as follows : ( a ) discounts actually granted, including without limitation, quantity, trade, cash and other discounts, rebates and charge -backs ( excluding inventory management fees, discounts or credits ) ; ( b ) amounts refunded or credits allowed for Licensed Products or other goods returned or not accepted by customers, including in connection with recalls ( regardless of the Party requesting the recall ) ; ( c ) packaging, freight, transportation and prepaid charges related to the sale, transportation, delivery or retu rn of Licensed Products ; ( d ) taxes, tariffs, customs duties, surcharges and other governmental charges actually incurred and paid by [COMPANY], its Affiliates or its Sublicensees hereunder in connection with the sale, use, exportation, importation or delivery of Licensed Products or other goods to customers ; ( e ) retroactive price reductions made to federal, state or local governments ( or their agencies or programs ) ; ( f ) any deductions to gross invoice price imposed by Regulatory Authorities or other governmental entities, including the annual fee on branded prescription pharmaceutical manufacturers and importers under the United States Patient Protection and Affordable Care Act ; and ( g ) bad debts or provisions for bad debts, provided, that if any bad debt is subsequently collected, it shall be added to Net Sales