DISTRIBUTION AGREEMENTS

9 Months Ended

Sep. 30, 2012

DISTRIBUTION AGREEMENTS

DISTRIBUTION AGREEMENTS

8.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 for both the three-months ended September 30, 2012 and 2011.  Revenue recognized was $6.3 million and $5.8 million for the nine-months ended September 30, 2012 and 2011, respectively.