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DISTRIBUTION AGREEMENTS | 9 Months Ended
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Sep. 30, 2014
DISTRIBUTION AGREEMENTS |
DISTRIBUTION AGREEMENTS | 10. DISTRIBUTION AGREEMENTS Amounts received pursuant to new and/or amended distribution agreements entered into with certain distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, 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 $1.9 million and $2.0 million for the three-months ended September 30, 2014 and 2013, respectively. Revenue recognized was $5.8 million and $6.4 million for the nine-months ended September 30, 2014 and 2013, respectively. The Company incurred termination amounts (net of adjustments to estimated amounts previously accrued) to certain of its prior distributors amounting to a credit of ($0.7) million and an expense of $0.4 million in aggregate for the three-months ended September 30, 2014 and 2013, respectively. The Company incurred termination amounts (net of adjustments to estimated amounts previously accrued) to certain of its prior distributors amounting to a credit of ($0.2) million and an expense of $10.7 million in aggregate for the nine-months ended September 30, 2014 and 2013, respectively. Such termination amounts have been expensed in full and are included in operating expenses for the three- and nine-months ended September 30, 2014 and 2013.

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