Current and Long-Term Liabilities

12 Months Ended

Dec. 31, 2012

Current and Long-Term Liabilities

Current and Long-Term Liabilities

G.    Current and Long-Term Liabilities

Accrued Expenses

        Accrued expenses consisted of the following as of December 31, 2012 and 2011 (in thousands):

	December 31,
	2012		2011
Clinical, manufacturing and regulatory consulting fees and expenses	$	7,737	$	11,468
Salaries, bonuses, and other compensation		5,236		5,924
Commercial rebates, fees and returns		3,448		5,943
Professional, license, and other fees and expenses		1,719		1,966
Restructuring expense		1,383		2,366
Commercial consulting fees and expenses		815		1,249
Total accrued expenses	$	20,338	$	28,916

Deferred Revenues

        Deferred revenues consisted of the following as of December 31, 2012 and 2011 (in thousands):

	December 31,
	2012		2011
Short-term deferred revenues:
Takeda	$	8,854	$	6,096
Other short-term deferred revenues		250		250
Total	$	9,104	$	6,346
Long-term deferred revenues:
Takeda	$	49,350	$	44,196
3SBio		1,000		1,000
Total	$	50,350	$	45,196

        During 2010, under the terms of our License, Development and Commercialization Agreement, or the Takeda Agreement, we received certain payments, including a $60.0 million upfront fee and $1.0 million reimbursed to us for certain expenses incurred prior to entering the agreement. We have recorded such payments as deferred revenue which we are recognizing on a straight-line basis over a period of 10 years, which represents the current patent life of Feraheme/Rienso and our best estimate of the period over which we will substantially perform our obligations. In addition, during 2012, we received an aggregate of $18.0 million in milestone payments from Takeda associated with the commercial launches of Feraheme/Rienso in Canada and the EU. These milestone payments were considered non-substantive milestone payments and accounted for in accordance with our revenue attribution method, as described in more detail below in Note N. Therefore, we are amortizing the $18.0 million using the proportional performance method over the original life of the Takeda Agreement. During 2012, we recorded $5.0 million of the $18.0 million to license fee and other collaboration revenues in our consolidated statement of operations and have included the remaining $13.0 million in our deferred revenues in our consolidated balance sheet.

        In consideration of the grant of the license to 3SBio in 2008, we received an upfront payment of $1.0 million, the recognition of which has been deferred and will be recognized under the proportional performance methodology over the remaining portion of the thirteen year initial term of the agreement once we begin to supply Feraheme to 3SBio.

Other Long-Term Liabilities

        Other long-term liabilities at both December 31, 2012 and 2011 consisted solely of deferred rent related to the lease of our principal executive offices in Lexington, Massachusetts.