Company: GIFLF
Filing Date: 2025-02-26
Form Type: 6-K
Source: 0001104659-25-017501
Chunk: 35

Company: Grifols SA
Filing Date: 2025-02-26
Form: 6-K
Chunk 35
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 the sale of goods is recognized when the Group satisfies the performance obligation by transferring the     
 committed goods to the customer. A good is transferred when the customer obtains control of that asset. In assessing     
 the satisfaction of the performance obligation, the Group considers the following indicators of the transfer of control, 
 which include, but are not limited to, the following:                                                                    
 • The Group has a present right to payment for the good                                                                  
 • The customer has the legal right to the good                                                                           
 • The Group has transferred the physical possession of the good                                                          
 • Customer has the significant risks and rewards of asset ownership                                                      
 • The customer has accepted the good                                                                                     
 The nature of the good that the Group undertakes to transfer are mainly: sale of goods, sale of equipment, toll          
 contracts, maintenance and technical service contracts, training, licenses, royalties and know-how and engineering       
 contracts, among others.                                                                                                 
 In determining the transaction price, it is assumed that the goods and/or services are transferred in accordance with    
 the terms of the contract. The consideration committed to a customer may include fixed amounts, variable amounts,        
 or both. The price should be estimated taking into account the effect of variable consideration (as applicable) for      
 returns, chargebacks/volume discounts or other incentives, provided that the same is highly probable.                    
 The Group participates in state Medicaid programs in the United States. Provision for Medicaid rebates is recorded at    
 the time the sale is recorded in an amount equal to the estimated Medicaid rebate claims attributable to such sale. The  
 Group determines the estimate of the accrual for Medicaid rebates primarily based on historical Medicaid rebate          
 experience, legal interpretations of applicable laws related to the Medicaid program and any new information             
 regarding changes in Medicaid program guidelines and regulations that could affect the amount of the rebates. The        
 Group considers pending Medicaid claims, Medicaid payments, and inventory levels in the distribution channel and         
 adjusts the provision periodically to reflect actual experience. Although rebate payments typically occur with a lag of  
 one to two quarters, adjustments for actual experience have not been material.                                           
 As is standard industry practice, certain customers have entered into contracts with the Group for purchases that are    
 eligible for a price discount based on a minimum purchase quantity, volume discounts or cash discounts. These            
 discounts are accounted for as a reduction in revenues and accounts receivable in the same month in which the            
 revenues are recognized based on a combination of the customer's actual purchase data and historical experience          
 when the customer's actual purchase data is later known