Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Summarizes Activity of the Product Revenue Allowance and Reserve Categories

The following table summarizes activity in each of the product revenue allowance and reserve categories described above for the nine months ended September 30, 2013 (in thousands):


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total

Balance at January 1, 2013	$	—		$	—		$	—	$	—		$	—
Provision related to current period and deferred sales		2,839			2,418			72		2,018			7,347
Credits/payments made for current period and deferred sales		(1,951	)		(1,484	)		—		(1,835	)		(5,270	)

Balance at September 30, 2013	$	888		$	934		$	72	$	183		$	2,077

Product Revenue Recognized and Deferred

The following table summarizes product revenue recognized and deferred during the nine months ended September 30, 2013 (in thousands):


	September 30, 2013		December 31, 2012
Product revenue recognized	$	16,245	$	—
Deferred product revenue		1,617		—

	$	17,862	$	—

Expensed and Capitalized Cost of Goods

In conjunction with the Company’s recognition and deferral of product revenues, the Company expensed and capitalized the associated cost of goods, as follows, during the nine months ended September 30, 2013 (in thousands):


	September 30, 2013		December 31, 2012
Cost of goods sold expensed	$	7,813	$	—
Finished goods inventory held by others		641		—

	$	8,454	$	—

Assets and Liability Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s assets and liabilities as of September 30, 2013 and December 31, 2012 that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	September 30, 2013
*In millions*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	113.5	$	113.5	$	—	$	—


Liabilities:
Warrant derivative liability	$	39.6	$	—	$	—	$	39.6
Long-term debt redemption feature	$	7.2	$	—	$	—	$	7.2
Foreign currency contracts	$	0.4	$	—	$	—	$	0.4


	December 31, 2012
*In millions*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	64.1	$	64.1	$	—	$	—


Liability:
Warrant derivative liability	$	54.9	$	—	$	—	$	54.9
Long-term debt redemption feature	$	14.6	$	—	$	—	$	14.6

Change in Fair Value of Financial Instruments

The change in the fair value of financial instruments is as follows (in thousands):


	October 2009 Warrants			Debt Redemption Feature		Foreign Exchange Contracts		Totals

Balance at January 1, 2012	$	123,125		$	—	$	—	$	123,125


Loss on change in fair value of derivative liability		68,686			—		—		68,686
Compensation expense for change in fair value of warrants issued to former employees		3,037							3,037
Transfers to equity		(103,885	)		—		—		(103,885	)


Balance at September 30, 2012	$	90,963		$	—	$	—	$	90,963


	October 2009 Warrants			Debt Redemption Feature			Foreign Exchange Contracts		Totals

Balance at January 1, 2013	$	54,854		$	14,577		$	—	$	69,431


(Gain) loss on change in fair value of derivative liabilities		(14,077	)		(7,377	)		395		(21,059	)
Compensation income for change in fair value of warrants issued to former employees		(1,179	)							(1,179	)
Transfers to equity		—			—			—		—


Balance at September 30, 2013	$	39,598		$	7,200		$	395	$	47,193

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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