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DISTRIBUTION AGREEMENTS | 6 Months Ended
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Jun. 30, 2013
DISTRIBUTION AGREEMENTS |
DISTRIBUTION AGREEMENTS | 8. DISTRIBUTION AGREEMENTS Pursuant to new and/or amended distribution agreements entered into with certain distributors, amounts of $9.7 million from such distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, were recorded for the six-months ended June 30, 2013. Such amounts have been accounted for as deferred revenue in the accompanying condensed consolidated balance sheets and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $2.0 million and $1.9 million for the three-months ended June 30, 2013 and 2012, respectively. Revenue recognized was $4.4 million for both the six-months ended June 30, 2013 and 2012, respectively. The Company incurred termination costs to certain of its prior distributors amounting to $2.0 million and $0.6 million in aggregate for the three-months ended June 30, 2013 and 2012, respectively. The Company incurred termination costs to certain of its prior distributors amounting to $10.3 million and $0.6 million in aggregate for the six-months ended June 30, 2013 and 2012, respectively. Such termination costs have been expensed in full and are included in operating expenses for the three- and six-months ended June 30, 2013 and 2012. Accrued distributor terminations included in accrued liabilities in the accompanying consolidated balance sheets as of June 30, 2013 and December 31, 2012 were $4.3 million and $0.9 million, respectively.

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