IMPAX LABORATORIES INC, 10-K filed on 2/25/2014
Annual Report
Document And Entity Information (USD $)
12 Months Ended
Dec. 31, 2013
Feb. 14, 2014
Jun. 30, 2013
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
IMPAX LABORATORIES INC 
 
 
Document Type
10-K 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Common Stock, Shares Outstanding
 
69,748,015 
 
Entity Public Float
 
 
$ 1,298,036,000 
Amendment Flag
false 
 
 
Entity Central Index Key
0001003642 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Balance Sheets (USD $)
Dec. 31, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 184,612,000 
$ 142,162,000 
Short-term investments
228,521,000 
156,756,000 
Accounts receivable, net
112,993,000 
92,249,000 
Inventory, net
70,107,000 
89,764,000 
Deferred income taxes
50,788,000 
42,529,000 
Prepaid expenses and other current assets
12,721,000 
22,083,000 
Total current assets
659,742,000 
545,543,000 
Property, plant and equipment, net
188,191,000 
180,758,000 
Other assets
57,820,000 
42,751,000 
Deferred income taxes
33,926,000 
19,394,000 
Intangible assets, net
29,670,000 
47,950,000 
Goodwill
27,574,000 
27,574,000 
Total assets
996,923,000 
863,970,000 
Current liabilities:
 
 
Accounts payable
26,824,000 
41,340,000 
Accrued expenses
111,523,000 
92,742,000 
Accrued profit sharing and royalty expenses
11,560,000 
4,936,000 
Deferred revenue
3,983,000 
6,277,000 
Total current liabilities
153,890,000 
145,295,000 
Deferred revenue
4,267,000 
6,362,000 
Other liabilities
28,563,000 
21,210,000 
Total liabilities
186,720,000 
172,867,000 
Commitments and contingencies (Notes 18 and 19)
   
   
Preferred Stock, $0.01 par value, 2,000,000 shares authorized, no shares outstanding at December 31, 2013 and 2012
   
   
Common stock, $0.01 par value, 90,000,000 shares authorized and 69,927,609 and 68,516,251 shares issued at December 31, 2013 and 2012, respectively
699,000 
685,000 
Additional paid-in capital
336,648,000 
314,717,000 
Treasury stock - 243,729 shares
(2,157,000)
(2,157,000)
Accumulated other comprehensive income
1,140,000 
5,244,000 
Retained earnings
473,873,000 
372,614,000 
Total stockholders’ equity
810,203,000 
691,103,000 
Total liabilities and stockholders’ equity
$ 996,923,000 
$ 863,970,000 
Consolidated Balance Sheets (Parentheticals) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Preferred Stock, par value (in Dollars per share)
$ 0.01 
$ 0.01 
Preferred Stock, shares authorized
2,000,000 
2,000,000 
Preferred Stock, shares outstanding
Common stock, par value (in Dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized
90,000,000 
90,000,000 
Common stock, shares issued
69,927,609 
68,516,251 
Treasury stock, shares
243,729 
243,729 
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenues:
 
 
 
Revenues
$ 511,502,000 
$ 581,692,000 
$ 512,919,000 
Cost of revenues
312,202,000 
299,138,000 
254,624,000 
Gross profit
199,300,000 
282,554,000 
258,295,000 
Operating expenses:
 
 
 
Research and development
68,854,000 
81,320,000 
82,701,000 
Patent litigation
16,545,000 
9,772,000 
7,506,000 
Selling, general and administrative
120,288,000 
108,470,000 
68,477,000 
Total operating expenses
205,687,000 
199,562,000 
158,684,000 
(Loss) income from operations
(6,387,000)
82,992,000 
99,611,000 
Other income (expense), net
152,447,000 
(138,000)
(2,492,000)
Interest income
1,299,000 
1,089,000 
1,149,000 
Interest expense
(419,000)
(632,000)
(157,000)
Income before income taxes
146,940,000 
83,311,000 
98,111,000 
Provision for income taxes
45,681,000 
27,438,000 
32,616,000 
Net income
101,259,000 
55,873,000 
65,495,000 
Net Income per share:
 
 
 
Basic (in Dollars per share)
$ 1.51 
$ 0.85 
$ 1.02 
Diluted (in Dollars per share)
$ 1.47 
$ 0.82 
$ 0.97 
Weighted average common shares outstanding:
 
 
 
Basic (in Shares)
66,921,181 
65,660,271 
64,126,855 
Diluted (in Shares)
68,655,038 
68,404,551 
67,319,989 
Global Division [Member]
 
 
 
Revenues:
 
 
 
Revenues
398,340,000 
448,682,000 
491,710,000 
Cost of revenues
253,836,000 
229,355,000 
242,713,000 
Operating expenses:
 
 
 
Research and development
41,384,000 
48,604,000 
46,169,000 
Patent litigation
16,545,000 
9,772,000 
7,506,000 
Selling, general and administrative
17,684,000 
15,377,000 
11,313,000 
Income before income taxes
68,891,000 
145,574,000 
184,009,000 
Impax Division [Member]
 
 
 
Revenues:
 
 
 
Revenues
113,162,000 
133,010,000 
21,209,000 
Cost of revenues
58,366,000 
69,783,000 
11,911,000 
Operating expenses:
 
 
 
Research and development
27,470,000 
32,716,000 
36,532,000 
Selling, general and administrative
44,915,000 
37,896,000 
7,435,000 
Income before income taxes
$ (17,589,000)
$ (7,385,000)
$ (34,669,000)
Consolidated Statements of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net income
$ 101,259,000 
$ 55,873,000 
$ 65,495,000 
Currency translation adjustments
(4,104,000)
3,520,000 
(1,087,000)
Comprehensive income
$ 97,155,000 
$ 59,393,000 
$ 64,408,000 
Consolidated Statements Of Changes In Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Total
Balance at December 31 at Dec. 31, 2010
$ 647,000 
$ 255,440,000 
$ (2,157,000)
$ 2,811,000 
$ 251,246,000 
$ 507,987,000 
Balance at December 31 (in Shares) at Dec. 31, 2010
64,477,000 
 
 
 
 
 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP
20,000 
11,306,000 
 
 
 
11,326,000 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP (in Shares)
2,027,000 
 
 
 
 
 
Share-based compensation expense
 
12,685,000 
 
 
 
12,685,000 
Tax benefit related to exercise of stock options and restricted stock
 
6,535,000 
 
 
 
6,535,000 
Currency translation adjustments
 
 
 
(1,087,000)
 
(1,087,000)
Net income
 
 
 
 
65,495,000 
65,495,000 
Balance at December 31 at Dec. 31, 2011
667,000 
285,966,000 
(2,157,000)
1,724,000 
316,741,000 
602,941,000 
Balance at December 31 (in Shares) at Dec. 31, 2011
66,504,000 
 
 
 
 
 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP
18,000 
7,746,000 
 
 
 
7,764,000 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP (in Shares)
1,768,000 
 
 
 
 
 
Share-based compensation expense
 
16,303,000 
 
 
 
16,303,000 
Tax benefit related to exercise of stock options and restricted stock
 
4,702,000 
 
 
 
4,702,000 
Currency translation adjustments
 
 
 
3,520,000 
 
3,520,000 
Net income
 
 
 
 
55,873,000 
55,873,000 
Balance at December 31 at Dec. 31, 2012
685,000 
314,717,000 
(2,157,000)
5,244,000 
372,614,000 
691,103,000 
Balance at December 31 (in Shares) at Dec. 31, 2012
68,272,000 
 
 
 
 
 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP
14,000 
3,538,000 
 
 
 
3,552,000 
Exercise of stock options, issuance of restricted stock and sale of common stock under ESPP (in Shares)
1,412,000 
 
 
 
 
 
Share-based compensation expense
 
17,644,000 
 
 
 
17,644,000 
Tax benefit related to exercise of stock options and restricted stock
 
749,000 
 
 
 
749,000 
Currency translation adjustments
 
 
 
(4,104,000)
 
(4,104,000)
Net income
 
 
 
 
101,259,000 
101,259,000 
Balance at December 31 at Dec. 31, 2013
$ 699,000 
$ 336,648,000 
$ (2,157,000)
$ 1,140,000 
$ 473,873,000 
$ 810,203,000 
Balance at December 31 (in Shares) at Dec. 31, 2013
69,684,000 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:
 
 
 
Net income
$ 101,259 
$ 55,873 
$ 65,495 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
36,006 
77,934 
15,710 
In-process research and development charge
 
1,550 
 
Intangible asset impairment
13,906 
 
 
Provision for inventory reserves
12,476 
(372)
(6,155)
Accretion of interest income on short-term investments
(659)
(639)
(870)
Deferred income taxes - net and uncertain tax positions
(21,132)
(23,561)
7,097 
Tax benefit related to the exercise of employee stock options
(749)
(4,702)
(6,535)
Deferred revenue
 
2,278 
2,568 
Deferred product manufacturing costs
 
(2,823)
(1,721)
Recognition of deferred revenue
(4,390)
(29,099)
(25,579)
Amortization of deferred product manufacturing costs
 
11,669 
3,111 
Accrued profit sharing and royalty expense
61,118 
72,106 
107,760 
Payments of profit sharing and royalty expense
(54,494)
(107,935)
(81,145)
Share-based compensation expense
17,644 
16,303 
12,685 
Bad debt expense
 
 
163 
Changes in certain assets and liabilities:
 
 
 
Accounts receivable
(20,744)
61,524 
(71,882)
Inventory
7,095 
(33,692)
(5,487)
Prepaid expenses and other assets
(7,646)
(22,301)
(16,024)
Accounts payable and accrued expenses
4,698 
28,462 
4,682 
Other liabilities
5,552 
3,254 
2,254 
Net cash provided by operating activities
149,940 
105,829 
6,127 
Cash flows from investing activities:
 
 
 
Purchase of short-term investments
(357,092)
(210,688)
(359,646)
Maturities of short-term investments
285,986 
296,566 
375,126 
Purchases of property, plant and equipment
(32,785)
(66,900)
(30,524)
Payments for product licensing rights, net
(12,000)
(104,760)
 
Net cash used in investing activities
(115,891)
(85,782)
(15,044)
Cash flows from financing activities:
 
 
 
Proceeds from exercise of stock options and ESPP
8,213 
12,614 
14,774 
Tax benefit related to the exercise of employee stock options and restricted stock
749 
4,702 
6,535 
Net cash provided by financing activities
8,962 
17,316 
21,309 
Effect of exchange rate changes on cash and cash equivalents
(561)
380 
231 
Net increase in cash and cash equivalents
42,450 
37,743 
12,623 
Cash and cash equivalents, beginning of year
142,162 
104,419 
91,796 
Cash and cash equivalents, end of year
184,612 
142,162 
104,419 
Cash paid for interest
89 
546 
166 
Cash paid for income taxes, net
$ 34,272 
$ 55,356 
$ 24,421 
Supplemental Cash Flow Information
Cash Flow, Supplemental Disclosures [Text Block]

Unpaid vendor invoices of approximately $6,210,000, $10,017,000 and $795,000 which were accrued as of December 31, 2013, 2012 and 2011, respectively, are excluded from the purchase of property, plant, and equipment and the change in accounts payable and accrued expenses.


Note 1 - The Company
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. THE COMPANY


Impax Laboratories, Inc. (“Impax” or “Company”) is a technology-based, specialty pharmaceutical company. The Company has two reportable segments, referred to as the Global Pharmaceuticals Division (“Global Division”) and the Impax Pharmaceuticals Division (“Impax Division”).


The Global Division develops, manufactures, sells, and distributes generic pharmaceutical products primarily through four sales channels: the “Global products” sales channel, for generic pharmaceutical prescription products the Company sells directly to wholesalers, large retail drug chains, and others; the “Private Label” sales channel, for generic pharmaceutical over-the-counter (“OTC”) and prescription products the Company sells to unrelated third-party customers who in-turn sell the product under their own label; the “Rx Partner” sales channel, for generic prescription products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance and collaboration agreements; and the “OTC Partner” sales channel, for generic pharmaceutical OTC products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance, collaboration and supply agreements.  Revenues from the “Global Products” sales channel and the “Private Label” sales channel are reported under the caption “Global Product sales, net” in “Note 20 - Supplementary Financial Information.”  The Company also generates revenue from research and development services provided under a joint development agreement with an unrelated third party pharmaceutical company, and reports such revenue under the caption “Other Revenues” in “Note 20 - Supplementary Financial Information.”  The Company provides these services through the research and development group in the Global Division. 


The Impax Division is engaged in the development of proprietary brand pharmaceutical products through improvements to already-approved pharmaceutical products to address central nervous system (“CNS”) disorders. The Impax Division currently has one internally developed late stage branded pharmaceutical product candidate, RYTARYTM (IPX066), an extended release capsule formulation of carbidopa-levodopa for the symptomatic treatment of Parkinson’s disease, for which the New Drug Application (“NDA”) was accepted for filing by the U.S. Food and Drug Administration (“FDA”) in February 2012 and which the Company received a Complete Response Letter from the FDA in January 2013. The Company is currently working with the FDA on the appropriate next steps for the RYTARYTM NDA. In addition to RYTARYTM, the Impax Division has a number of other product candidates that are in varying stages of development. The Impax Division is also engaged in product sales and promotion through a direct sales force focused on promoting to physicians, primarily in the CNS community, pharmaceutical products developed by an unrelated third-party pharmaceutical company. Additionally, the Company generates revenue in the Impax Division from research and development services provided under a development and license agreement with another unrelated third-party pharmaceutical company.


In California, the Company utilizes a combination of owned and leased facilities mainly located in Hayward. The Company’s primary properties in California consist of a leased office building used as the Company’s corporate headquarters, in addition to five properties it owns, including a research and development center facility and a manufacturing facility. Additionally, the Company leases three facilities in Hayward, utilized for additional research and development, administrative services, equipment storage and quality assurance support. In Pennsylvania, the Company owns a packaging, warehousing, and distribution center located in Philadelphia and leases a facility in New Britain used for sales and marketing, finance, and administrative personnel, as well as providing additional warehouse space. Outside the United States, in Taiwan, R.O.C., the Company owns a manufacturing facility.


Workforce reduction


On June 4, 2013, the Company committed to a reduction in the Company’s workforce, eliminating approximately 110 positions, with the majority of these positions at the Company’s Hayward, California manufacturing facility. The reduction in workforce is part of the Company’s efforts to streamline its operations in response to the need to reduce expenses and adapt to changing market conditions. The Company recorded an accrual for severance and related termination costs of $3.0 million in the three month period ended June 30, 2013 as a result of this workforce reduction. As of December 31, 2013, all accrued severance and related termination costs had been paid and the Company currently does not expect to pay any additional amounts.  


CEO transition


On June 25, 2013, the Company announced that Dr. Larry Hsu plans to retire as President and Chief Executive Officer of Impax. Dr. Hsu is expected to remain with the Company in his current position until a replacement has been appointed. Dr. Hsu is also expected to remain as a member of the Board of Directors after his retirement from the Company. In connection with his retirement, Dr. Hsu entered into a Separation Agreement with the Company dated June 24, 2013 (the “Separation Agreement”). Pursuant to the Separation Agreement, the Company will provide Dr. Hsu with certain termination benefits and payments. The Company recorded a $5.0 million accrual for costs associated with Dr. Hsu’s retirement in the three month period ended June 30, 2013, comprised of $2.7 million of separation pay and benefits and $2.3 million of accelerated expense related to Dr. Hsu’s outstanding stock options and restricted stock. Refer to “Note 14 – Share-based Compensation” for more information on the acceleration of Dr. Hsu’s equity awards.


Note 2 - Summary of Significant Accounting Policies
Significant Accounting Policies [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Use of Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the U.S. Securities & Exchange Commission (“SEC”) requires the use of estimates and assumptions, based on complex judgments considered reasonable, and affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant judgments are employed in estimates used in determining values of tangible and intangible assets, legal contingencies, tax assets and tax liabilities, fair value of share-based compensation related to equity incentive awards issued to employees and directors, and estimates used in applying the Company’s revenue recognition policy including those related to accrued chargebacks, rebates, product returns, Medicare, Medicaid, and other government rebate programs, shelf-stock adjustments, and the timing and amount of deferred and recognized revenue and deferred and amortized product manufacturing costs related to alliance and collaboration agreements. Actual results may differ from estimated results. Certain prior year amounts have been reclassified to conform to the presentation for the year ended December 31, 2013. The Company’s results for the year ended December 31, 2013 were positively impacted by a credit of approximately $600,000 (net-of-tax), or $0.01 per diluted share, related to certain partially offsetting prior period adjustments. The adjustments related to a non-GAAP depreciation policy and a best price adjustment for government rebates. The Company has determined that the impact of these adjustments is not material to the Company’s corresponding annual or quarterly financial statements.


Principles of Consolidation


The consolidated financial statements of the Company include the accounts of the operating parent company, Impax Laboratories, Inc., its wholly owned subsidiaries, including Impax Laboratories (Taiwan) Inc., and an equity investment in Prohealth Biotech, Inc. (“Prohealth”), in which the Company held a 57.54% majority ownership interest at December 31, 2013. All significant intercompany accounts and transactions have been eliminated. 


Cash and Cash Equivalents


The Company considers all short-term investments with maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are stated at cost, which, for cash equivalents, approximates fair value due to their short-term maturity. The Company is potentially subject to financial instrument concentration of credit risk through its cash and cash equivalents. The Company maintains cash and cash equivalents with several major financial institutions. Such amounts frequently exceed Federal Deposit Insurance Corporation (“FDIC”) limits.


Short-Term Investments


Short-term investments represent investments in fixed rate financial instruments with maturities of greater than three months but less than 12 months at the time of purchase. The Company’s short-term investments are held in U.S. Treasury securities, corporate bonds, and high grade commercial paper, which are not insured by the FDIC. They are stated at amortized cost, which approximates fair value due to their short-term maturity, generally based upon observable market values of similar securities.


Fair Value of Financial Instruments


The Company’s deferred compensation liability is carried at the value of the amount owed to participants, and is derived from observable market data by reference to hypothetical investments. The carrying values of other financial assets and liabilities such as accounts receivable, accounts payable and accrued expenses approximate their fair values due to their short-term nature.


Contingencies


In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, covering a wide range of matters, including, among others, patent litigation, stockholder lawsuits, and product and clinical trial liability. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”) Topic 450, "Contingencies", the Company records accruals for such loss contingencies when it is probable a liability will been incurred and the amount of loss can be reasonably estimated. The Company, in accordance with FASB ASC Topic 450, does not recognize gain contingencies until realized. The Company records an accrual for legal costs in the period incurred. A discussion of contingencies is included in the “Commitments and Contingencies,” and “Legal and Regulatory Matters” footnotes below.


Allowance for Doubtful Accounts


The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers; these allowances are for specific amounts on certain accounts based on facts and circumstances determined on a case-by-case basis.


Concentration of Credit Risk


Financial instruments that potentially subject the Company to concentrations of credit risk are cash, cash equivalents, short-term investments, and accounts receivable. The Company limits its credit risk associated with cash, cash equivalents and short-term investments by placing its investments with high quality money market funds, corporate debt, and short-term commercial paper and in securities backed by the U.S. Government. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary. The Company does not require collateral to secure amounts owed to it by its customers.


The following tables present the percentage of total accounts receivable and gross revenues represented by the Company’s five largest customers as of and for the years ended December 31, 2013, 2012 and 2011:


Percent of Total Accounts Receivable

 

2013

   

2012

   

2011

 
                         

Customer #1

    35.1%       31.9%       30.4%  

Customer #2

    28.8%       23.3%       12.9%  

Customer #3

    18.5%       18.4%       25.7%  

Customer #4

    --%       --%       8.6%  

Customer #5

    --%       3.7%       2.5%  

Customer #6

    --%       3.1%       --%  

Customer #7

    2.9%       --%       --%  

Customer #8

    1.0%       --%       --%  

Total Five largest customers

    86.3%       80.4%       80.1%  

Percent of Gross Revenues

 

2013

   

2012

   

2011

 

 

                       

Customer #1

    25.1%       25.2%       19.6%  

Customer #2

    30.6%       21.8%       15.9%  

Customer #3

    20.3%       15.1%       19.4%  

Customer #4

    --%       9.2%       12.4%  

Customer #5

    2.5%       --%       --%  

Customer #6

    2.4%       2.9%       2.4%  

Total Five largest customers

    80.9%       74.2%       69.7%  

During the years ended December 31, 2013, 2012 and 2011, the Company’s top ten generic products accounted for 68%, 70% and 76%, respectively, of Global Product sales, net.  In our Impax Division, revenue from sales of branded Zomig® products pursuant to our Distribution, License, Development and Supply Agreement with AstraZeneca accounted for 100% of our Impax Product sales, net. Refer to “Note 20 - Supplemental Financial Information” for more information.


Inventory


Inventory is stated at the lower of cost or market. Cost is determined using a standard cost method, and the cost flow assumption is first in, first out (“FIFO”) flow of goods. Standard costs are revised annually, and significant variances between actual costs and standard costs are apportioned to inventory and cost of goods sold based upon inventory turnover. Costs include materials, labor, quality control, and production overhead. Inventory is adjusted for short-dated, unmarketable inventory equal to the difference between the cost of inventory and the estimated value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Consistent with industry practice, the Company may build pre-launch inventories of certain products which are pending required approval from the FDA and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to prepare for the anticipated commercial launch and FDA approval is expected in the near term and/or the related litigation will be resolved in the Company’s favor. The Company accounts for all costs of idle facilities, excess freight and handling costs, and wasted materials (spoilage) as a current period charge in accordance with GAAP.


Property, Plant and Equipment


Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Costs incurred in connection with the construction or major renovation of facilities, including interest directly related to such projects, are capitalized as construction in progress. Depreciation is recognized using the straight-line method based on the estimated useful lives of the related assets, which are generally 40 years for buildings, 10 to 15 years for building improvements, eight to 10 years for equipment, and four to 10 years for office furniture and equipment. Land and construction-in-progress are not depreciated.


Goodwill


In accordance with FASB ASC Topic 350, "Goodwill and Other Intangibles", rather than recording periodic amortization, goodwill is subject to an annual assessment for impairment by applying a fair value based test. Under FASB ASC Topic 350, if the fair value of the reporting unit exceeds the reporting unit’s carrying value, including goodwill, then goodwill is considered not impaired, making further analysis not required. The Company considers the Global Division and the Impax Division operating segments to each be a reporting unit. The Company attributes the entire carrying amount of goodwill to the Global Division.


The Company concluded the carrying value of goodwill was not impaired as of December 31, 2013 and 2012 as the fair value of the Global Division exceeded its carrying value at each date. The Company performs its annual goodwill impairment test in the fourth quarter of each year. The Company estimated the fair value of the Global Division using a discounted cash flow model for both the reporting unit and the enterprise. In addition, on a quarterly basis, the Company performs a review of its business operations to determine whether events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value. If such events or changes in circumstances were deemed to have occurred, the Company would perform an interim impairment analysis, which may include the preparation of a discounted cash flow model, or consultation with one or more valuation specialists, to determine the impact, if any, on the Company’s assessment of the reporting unit’s fair value. The Company has not to date deemed there to have been any significant adverse changes in the legal, regulatory, or general economic environment in which the Company conducts its business operations.


Revenue Recognition


The Company recognizes revenue when the earnings process is complete, which under SEC Staff Accounting Bulletin No. 104, Topic No. 13, “Revenue Recognition” (“SAB 104”), is when revenue is realized or realizable and earned, there is persuasive evidence a revenue arrangement exists, delivery of goods or services has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.


The Company accounts for material revenue arrangements which contain multiple deliverables in accordance with FASB ASC Topic 605-25, revenue recognition for arrangements with multiple elements, which addresses the determination of whether an arrangement involving multiple deliverables contains more than one unit of accounting. A delivered item within an arrangement is considered a separate unit of accounting only if both of the following criteria are met:


  ●  the delivered item has value to the customer on a stand-alone basis; and
 

if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor.


Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. Revenue recognition for arrangements with multiple deliverables constituting a single unit of accounting is recognized generally over the greater of the term of the arrangement or the expected period of performance, either on a straight-line basis or on a modified proportional performance method.


The Company accounts for milestones related to research and development activities in accordance with FASB ASC Topic 605-28, milestone method of revenue recognition. FASB ASC Topic 605-28 allows for the recognition of consideration, which is contingent on the achievement of a substantive milestone, in its entirety in the period the milestone is achieved. A milestone is considered to be substantive if all of the following criteria are met: the milestone is commensurate with either: (1) the performance required to achieve the milestone, or (2) the enhancement of the value of the delivered items resulting from the performance required to achieve the milestone; the milestone relates solely to past performance; and, the milestone payment is reasonable relative to all of the deliverables and payment terms within the agreement.


Global Product sales, net, and Impax Product sales, net:


The Global Product sales, net and Impax Product sales, net include revenue recognized related to shipments of generic and branded pharmaceutical products to the Company’s customers, primarily drug wholesalers and retail chains. Gross sales revenue is recognized at the time title and risk of loss passes to the customer, which is generally when product is received by the customer. Global and Impax Product revenue, net may include deductions from the gross sales price related to estimates for chargebacks, rebates, distribution service fees, returns, shelf-stock, and other pricing adjustments. The Company records an estimate for these deductions in the same period when revenue is recognized. A summary of each of these deductions is as follows:


Chargebacks


The Company has agreements establishing contract prices for certain products with certain indirect customers, such as managed care organizations, hospitals and government agencies who purchase products from drug wholesalers. The contract prices are lower than the prices the customer would otherwise pay to the wholesaler, and the price difference is referred to as a chargeback, which generally takes the form of a credit memo issued by the Company to reduce the invoiced gross selling price charged to the wholesaler. An estimated accrued provision for chargeback deductions is recognized at the time of product shipment. The primary factors considered when estimating the provision for chargebacks are the average historical chargeback credits given, the mix of products shipped, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business. The Company also monitors actual chargebacks granted and compares them to the estimated provision for chargebacks to assess the reasonableness of the chargeback reserve at each quarterly balance sheet date.


Rebates


The Company maintains various rebate programs with its customers in an effort to maintain a competitive position in the marketplace and to promote sales and customer loyalty. The rebates generally take the form of a credit memo to reduce the invoiced gross selling price charged to a customer for products shipped. An estimated accrued provision for rebate deductions is recognized at the time of product shipment. The primary factors the Company considers when estimating the provision for rebates are the average historical experience of aggregate credits issued, the mix of products shipped and the historical relationship of rebates as a percentage of total gross product sales, the contract terms and conditions of the various rebate programs in effect at the time of shipment, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business. The Company also monitors actual rebates granted and compares them to the estimated provision for rebates to assess the reasonableness of the rebate reserve at each quarterly balance sheet date.


Distribution Service Fees


The Company pays distribution service fees to several of its wholesaler customers related to sales of its Impax Products. The wholesalers are generally obligated to provide the Company with periodic outbound sales information as well as inventory levels of the Company’s Impax Products held in their warehouses. Additionally, the wholesalers have agreed to manage the variability of their purchases and inventory levels within specified days on hand limits. An accrued provision for distribution service fees is recognized at the time products are shipped to wholesalers.


Returns


The Company allows its customers to return product if approved by authorized personnel in writing or by telephone with the lot number and expiration date accompanying any request and if such products are returned within six months prior to or until twelve months following, the products’ expiration date. The Company estimates and recognizes an accrued provision for product returns as a percentage of gross sales based upon historical experience. The product return reserve is estimated using a historical lag period, which is the time between when the product is sold and when it is ultimately returned, and estimated return rates which may be adjusted based on various assumptions including changes to internal policies and procedures, changes in business practices, and commercial terms with customers, competitive position of each product, amount of inventory in the wholesaler supply chain, the introduction of new products, and changes in market sales information. The Company also considers other factors, including significant market changes which may impact future expected returns, and actual product returns. The Company monitors actual returns on a quarterly basis and may record specific provisions for returns it believes are not covered by historical percentages.


Shelf-Stock Adjustments


Based upon competitive market conditions, the Company may reduce the selling price of certain Global Division products. The Company may issue a credit against the sales amount to a customer based upon their remaining inventory of the product in question, provided the customer agrees to continue to make future purchases of product from the Company. This type of customer credit is referred to as a shelf-stock adjustment, which is the difference between the sales price and the revised lower sales price, multiplied by an estimate of the number of product units on hand at a given date. Decreases in selling prices are discretionary decisions made by the Company in response to market conditions, including estimated launch dates of competing products and declines in market price. The Company records an estimate for shelf-stock adjustments in the period it agrees to grant such a credit memo to a customer.


Medicaid and Other Government Pricing Programs


As required by law, the Company provides a rebate on drugs dispensed under the Medicaid program, Medicare Part D, TRICARE, and other U.S. government pricing programs. The Company determines its estimated government rebate accrual primarily based on historical experience of claims submitted by the various states and other jurisdictions and any new information regarding changes in the various programs which may impact the Company’s estimate of government rebates. In determining the appropriate accrual amount, the Company considers historical payment rates and processing lag for outstanding claims and payments. The Company records estimates for government rebates as a deduction from gross sales, with a corresponding adjustment to accrued liabilities.


Cash Discounts


The Company offers cash discounts to its customers, generally 2% of the gross selling price, as an incentive for paying within invoice terms, which generally range from 30 to 90 days. An estimate of cash discounts is recorded in the same period when revenue is recognized.


Rx Partner and OTC Partner:


The Rx Partner and OTC Partner contracts include revenue recognized under alliance and collaboration agreements between the Company and unrelated third-party pharmaceutical companies. The Company has entered into these alliance agreements to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform.


The Rx Partners and OTC Partners alliance agreements obligate the Company to deliver multiple goods and/or services over extended periods. Such deliverables include manufactured pharmaceutical products, exclusive and semi-exclusive marketing rights, distribution licenses, and research and development services. In exchange for these deliverables the Company receives payments from its agreement partners for product shipments and research and development services, and may also receive other payments including royalty, profit sharing, upfront, and periodic milestone payments. Revenue received from the alliance agreement partners for product shipments under these agreements is not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments. Royalty and profit sharing amounts the Company receives under these agreements are calculated by the respective agreement partner, with such royalty and profit share amounts generally based upon estimates of net product sales or gross profit which include estimates of deductions for chargebacks, rebates, product returns, and other adjustments the alliance agreement partners may negotiate with their respective customers. The Company records the agreement partner's adjustments to such estimated amounts in the period the agreement partner reports the amounts to the Company.


The Company applies the updated guidance of ASC 605-25 “Multiple Element Arrangements” to the Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited (“Teva Agreement”). The Company looks to the underlying delivery of goods and/or services which give rise to the payment of consideration under the Teva Agreement to determine the appropriate revenue recognition. The Company initially defers consideration received as a result of research and development-related activities performed under the Teva Agreement. The Company recognizes deferred revenue on a straight-line basis over the expected period of performance for such services. Consideration received as a result of the manufacture and delivery of products under the Teva Agreement is recognized at the time title and risk of loss passes to the customer which is generally when product is received by Teva. The Company recognizes profit share revenue in the period earned.


OTC Partner revenue is related to agreements with Pfizer, Inc., formerly Wyeth LLC (“Pfizer”) and L. Perrigo Company (“Perrigo”) with respect to the supply of over-the-counter pharmaceutical products. The OTC Partner sales channel is no longer a core area of the business, and the over-the-counter pharmaceutical products the Company sells through this sales channel are older products which are only sold to Pfizer and Perrigo, and which are currently sold at a loss, on a fully absorbed basis. The Company is currently only required to manufacture the over-the-counter pharmaceutical products under its agreements with Pfizer and Perrigo. In order to avoid deferring the losses incurred upon shipment of these products to Pfizer and Perrigo, the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer or Perrigo, as applicable, which is generally when the product is shipped. The Company recognizes profit share revenue in the period earned.


Research Partner:


The Research Partner contract includes revenue recognized under development agreements with unrelated third-party pharmaceutical companies. The development agreements generally obligate the Company to provide research and development services over multiple periods. In exchange for this service, the Company received upfront payments upon signing of each development agreement and is eligible to receive contingent milestone payments, based upon the achievement of contractually specified events. Additionally, the Company may also receive royalty payments from the sale, if any, of a successfully developed and commercialized product under one of these development agreements. The Company recognizes revenue received from the provision of research and development services, including the upfront payment and the milestone payments received before January 1, 2011 on a straight line basis over the expected period of performance of the research and development services. Revenue received from the achievement of contingent research and development milestones after January 1, 2011 will be recognized currently in the period such payment is earned. Royalty fee income, if any, will be recognized as current period revenue when earned.


Promotional Partner:


The Promotional Partner contract includes revenue recognized under a promotional services agreement with an unrelated third-party pharmaceutical company. The promotional services agreement obligated the Company to provide physician detailing sales calls services to promote certain of the unrelated third-party company’s branded drug products. The Company received service fee revenue in exchange for providing this service. The Company recognized revenue from providing physician detailing sales calls services as the services were provided. The Company’s obligation to provide physician detailing sales calls under the promotional services agreement ended on June 30, 2012.


Shipping and Handling Fees and Costs


Shipping and handling fees related to sales transactions are recorded as selling expense. Shipping costs were $1,890,000, $1,425,000 and $1,341,000 for the years ended December 31, 2013, 2012 and 2011, respectively.


Research and Development


Research and development activities are expensed as incurred and consist of self-funded research and development costs and costs associated with work performed by other participants under collaborative research and development agreements.


Derivatives 


The Company does not engage in hedging transactions for trading or speculative purposes or to hedge exposure to currency or interest rate fluctuations. From time to time, the Company may engage in transactions that result in embedded derivatives (e.g. convertible debt securities). In accordance with FASB ASC Topic 815, derivatives and hedging, the Company records the embedded derivative at fair value on the balance sheet and records any related gains or losses in current earnings in the statement of operations.


Share-Based Compensation


The Company accounts for stock-based employee compensation arrangements in accordance with provisions of FASB ASC Topic 718, stock compensation. Under FASB ASC Topic 718, the Company recognizes the grant date fair value of stock-based employee compensation as expense on a straight-line basis over the vesting period of the grant. The Company uses the Black Scholes option pricing model to determine the grant date fair value of employee stock options; the fair value of restricted stock awards is equal to the closing price of the Company’s stock on the date such award was granted.


Income Taxes


The Company provides for income taxes using the asset and liability method as required by FASB ASC Topic 740, income taxes. This approach recognizes the amount of federal, state, local taxes, and foreign taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law. Under FASB ASC Topic 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income.


FASB ASC Topic 740, Sub-topic 10, tax positions, defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with generally accepted accounting principles. Under FASB ASC Topic 740, Sub-topic 10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Additionally, FASB ASC Topic 740, Sub-topic 10 provides guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. In accordance with the disclosure requirements of FASB ASC Topic 740, Sub-topic 10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of total interest expense and other expense, respectively.


Earnings per Share


Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares adjusted for the dilutive effect of common stock equivalents outstanding during the period.


Other Comprehensive Income


The Company follows the provisions of FASB ASC Topic 220, comprehensive income, which establishes standards for the reporting and display of comprehensive income and its components. Comprehensive income is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company recorded foreign currency translation gains and losses, which are reported as comprehensive income. Foreign currency translation gains (losses) for the years ended December 31, 2013, 2012 and 2011 were $(4,104,000), $3,520,000 and $(1,087,000), respectively.


Deferred Financing Costs


The Company capitalizes direct costs incurred with obtaining debt financing, which are included in other assets on the consolidated balance sheet. Deferred financing costs, including costs incurred in obtaining debt financing, are amortized to interest expense over the term of the underlying debt on a straight-line basis, which approximates the effective interest method. The Company recognized amortization of $30,000, $30,000 and $28,000 in the years ended December 31, 2013, 2012 and 2011, respectively.


Foreign Currency Translation


The Company translates the assets and liabilities of the Taiwan dollar functional currency of its majority-owned affiliate Prohealth Biotech, Inc. and its wholly-owned subsidiary Impax Laboratories (Taiwan), Inc. into the U.S. dollar reporting currency using exchange rates in effect at the end of each reporting period. The revenue and expense of these entities are translated using an average of the rates in effect during the reporting period. Gains and losses from these translations are recorded as currency translation adjustments included in the consolidated statements of comprehensive income and the consolidated statements of changes in stockholders’ equity.


Note 3 - Recent Accounting Pronouncements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

3.     RECENT ACCOUNTING PRONOUNCEMENTS


In December 2011, the FASB issued its updated guidance on balance sheet offsetting. This new standard provides guidance to determine when offsetting in the balance sheet is appropriate. The guidance is designed to enhance disclosures by requiring improved information about financial instruments and derivative instruments. The goal is to provide users of the financial statements the ability to evaluate the effect or potential effect of netting arrangements on an entity's statement of financial position. This guidance will only impact the disclosures within an entity's financial statements and notes to the financial statements and does not result in a change to the accounting treatment of financial instruments and derivative instruments. The Company was required to adopt this guidance on January 1, 2013 and it did not have a material effect on its consolidated financial statements.


In March 2013, the FASB issued updated guidance on foreign currency matters. The update applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. The Company is required to adopt this guidance on January 1, 2014 and does not expect the adoption of this guidance to have a material effect on its consolidated financial statements.


In July 2013, the FASB issued updated guidance related to presentation of an unrecognized tax benefit. The guidance requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss, or tax credit carryforward, rather than as a liability under certain circumstances. The Company is required to adopt this guidance on January 1, 2014 and does not expect the adoption of this guidance to have a material effect on its consolidated financial statements.


Note 4 - Investments
Investment [Text Block]

4.     INVESTMENTS


Investments consist of commercial paper, corporate bonds, medium-term notes, government sponsored enterprise obligations and certificates of deposit. The Company’s policy is to invest in only high quality “AAA-rated” or investment-grade securities. Investments in debt securities are accounted for as “held-to-maturity’ and are recorded at amortized cost, which approximates fair value, generally based upon observable market values of similar securities. The Company has historically held all investments in debt securities until maturity, and has the ability and intent to continue to do so. All of the Company’s investments have remaining contractual maturities of less than 12 months and are classified as short-term. Upon maturity the Company uses a specific identification method.


A summary of short-term investments as of December 31, 2013 and December 31, 2012 follows:


(in $000’s)

 

Amortized

   

Gross

Unrecognized

    Gross

Unrecognized

   

Fair

 

December 31, 2013

 

Cost

   

Gains

   

Losses

   

Value

 

Commercial paper

  $ 91,480     $ 26     $ --     $ 91,506  

Corporate bonds

    137,041       13       (21 )     137,033  

Total short-term investments

  $ 228,521     $ 39     $ (21 )   $ 228,539  

(in $000’s)

  Amortized    

Gross

Unrecognized

    GrossUnrecognized     Fair  

December 31, 2012

 

Cost

   

Gains

   

Losses

   

Value

 

Commercial paper

  $ 70,140     $ 28     $ --     $ 70,168  

Government sponsored enterprise obligations

    9,994       4       --       9,998  

Corporate bonds

    76,622       23       (12 )     76,633  

Total short-term investments

  $ 156,756     $ 55     $ (12 )   $ 156,799  

Note 5 - Accounts Receivable
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5. ACCOUNTS RECEIVABLE


The composition of accounts receivable, net is as follows:


(in $000’s)

 

December 31,

2013

   

December 31,

2012

 

Gross accounts receivable

  $ 246,319     $ 167,696  

Less: Rebate reserve

    (88,449 )     (46,011 )

Less: Chargeback reserve

    (37,066 )     (18,410 )

Less: Other deductions

    (7,811 )     (11,026 )

Accounts receivable, net

  $ 112,993     $ 92,249  

A roll forward of the chargeback and rebate reserves activity for the years ended December 31, 2013, 2012 and 2011 is as follows:


(in $000’s)

 

December 31,

   

December 31,

   

December 31,

 

Rebate reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 46,011     $ 29,164     $ 23,547  

Provision recorded during the period

    193,288       111,099       79,697  

Credits issued during the period

    (150,850 )     (94,252 )     (74,080 )

Ending balance

  $ 88,449     $ 46,011     $ 29,164  

(in $000’s)

 

December 31,

   

December 31,

   

December 31,

 

Chargeback reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 18,410     $ 22,161     $ 14,918  

Provision recorded during the period

    389,707       209,452       166,504  

Credits issued during the period

    (371,051 )     (213,203 )     (159,261 )

Ending balance

  $ 37,066     $ 18,410     $ 22,161  

Other deductions include allowance for uncollectible amounts and cash discounts. The Company maintains an allowance for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers, with such allowances for specific amounts on certain accounts. The Company recorded an allowance for uncollectible amounts of $539,000 and $553,000 at December 31, 2013 and 2012, respectively.


Note 6 - Inventory
Inventory Disclosure [Text Block]

6. INVENTORY


Inventory, net of carrying value reserves at December 31, 2013 and 2012 consisted of the following:


(in $000’s)

 

December 31,

2013

   

December 31,

2

 

Raw materials

  $ 27,981     $ 31,884  

Work in process

    1,434       4,005  

Finished goods

    47,416       60,956  

Total inventory

    76,831       96,845  
                 

Less: Non-current inventory

    6,725       7,081  

Total inventory-current

  $ 70,107     $ 89,764  

Inventory carrying value reserves were $17,702,000 and $5,231,000 at December 31, 2013 and 2012, respectively. During the three month period ended March 31, 2013, the Company decided to discontinue the manufacture and distribution of certain unprofitable products after the Company conducted a strategic review of its currently manufactured generic product portfolio. As a result of this decision, the Company recorded an inventory reserve of $6,700,000 related to the discontinued products. In addition, upon receipt of the Complete Response Letter for RYTARYTM in January 2013, the Company evaluated the impact of the expected delay of FDA approval on its ability to sell the associated inventory. The Company determined that a reserve of $5,000,000 was appropriate and recorded this amount in the three month period ended March 31, 2013. During the three month period ended March 31, 2013, the Company also recorded a $6,400,000 reserve for pre-launch inventory of a product manufactured for another third-party pharmaceutical company due to the anticipated delayed launch of such product as a result of the warning letter related to our Hayward, California manufacturing facility. The carrying value of unapproved inventory less reserves was $6,462,000 and $12,106,000 at December 31, 2013 and 2012, respectively.


The Company recognizes pre-launch inventories at the lower of its cost or the expected net selling price. Cost is determined using a standard cost method, which approximates actual cost, and assumes a FIFO flow of goods. Costs of unapproved products are the same as approved products and include materials, labor, quality control, and production overhead. When the Company concludes FDA approval is expected within approximately six months, the Company will generally begin to schedule manufacturing process validation studies as required by the FDA to demonstrate the production process can be scaled up to manufacture commercial batches. Consistent with industry practice, the Company may build quantities of pre-launch inventories of certain products pending required final FDA approval and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to prepare for the anticipated commercial launch, FDA approval is expected in the near term, and/or the related litigation will be resolved in the Company’s favor. The capitalization of unapproved pre-launch inventory involves risks, including, among other items, FDA approval of product may not occur; approvals may require additional or different testing and/or specifications than used for unapproved inventory; and, in cases where the unapproved inventory is for a product subject to litigation, the litigation may not be resolved or settled in favor of the Company. If any of these risks were to materialize and the launch of the unapproved product delayed or prevented, then the net carrying value of unapproved inventory may be partially or fully reserved. Generally, the selling price of a generic pharmaceutical product is at discount from the corresponding brand product selling price. Typically, a generic drug is easily substituted for the corresponding brand product, and once a generic product is approved, the pre-launch inventory is typically sold within the next three months. If the market prices become lower than the product inventory carrying costs, then the pre-launch inventory value is reduced to such lower market value. If the inventory produced exceeds the estimated market acceptance of the generic product and becomes short-dated, a carrying value reserve will be recorded. In all cases, the carrying value of the Company's pre-launch product inventory is lower than the respective estimated net selling prices.


To the extent inventory is not scheduled to be utilized in the manufacturing process and/or sold within twelve months of the balance sheet date, it is included as a component of other non-current assets. Amounts classified as non-current inventory consist of raw materials, net of valuation reserves. Raw materials generally have a shelf life of approximately three to five years, while finished goods generally have a shelf life of approximately two years.


Note 7 - Property, Plant and Equipment
Property, Plant and Equipment Disclosure [Text Block]

7. PROPERTY, PLANT AND EQUIPMENT


Property, plant and equipment, net consisted of the following:


(in $000’s)

 

December 31,
2013

   

December 31,

2012

 

Land

  $ 5,773     $ 5,773  

Buildings and improvements

    139,657       130,995  

Equipment

    114,950       110,353  

Office furniture and equipment

    11,523       10,558  

Construction-in-progress

    15,910       9,843  

Property, plant and equipment, gross

  $ 287,813     $ 267,522  
                 

Less: Accumulated depreciation

    (99,622 )     (86,764 )

Property, plant and equipment, net

  $ 188,191     $ 180,758  

Depreciation expense was $16,782,000, $15,982,000 and $14,911,000 for the years ended December 31, 2013, 2012 and 2011, respectively.


Note 8 - Goodwill and Intangible Assets
Goodwill and Intangible Assets Disclosure [Text Block]

8. GOODWILL AND INTANGIBLE ASSETS


Goodwill was $27,574,000 at December 31, 2013 and 2012, and the Company attributes the entire carrying amount of goodwill to the Global Division. Goodwill is tested at least annually for impairment or whenever events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value.The Company concluded the carrying value of goodwill was not impaired as of December 31, 2013 and 2012.


(in $000’s)

 

Initial

   

Accumulated

         

Carrying

 

December 31, 2013

 

Cost

 
   

Amortization

 
   

Impairment

   

Value

 
 

Amortized intangible assets:

                               

Zomig® product rights

  $ 41,783     $ (28,641 )   $ ---     $ 13,142  

Tolmar product rights

    31,450       (3,266 )     (13,156 )     15,028  

Other product rights

    2,250       ---       (750 )     1,500  

Total intangible assets

  $ 75,483     $ (31,907 )   $ (13,906 )   $ 29,670  

(in $000’s)

 

Initial

   

Accumulated

         

Carrying

 

December 31, 2012

 

Cost

   

Amortization

   

Impairment

   

Value

 

Amortized intangible assets:

                               

Zomig® product rights

  $ 45,096     $ (17,987 )   $ ---     $ 27,109  

Tolmar product rights

    19,450       (859 )     ---       18,591  

Other product rights

    2,250       ---       ---       2,250  

Total intangible assets

  $ 66,796     $ (18,846 )   $ ---     $ 47,950  

The Zomig® product rights under the Distribution, License, Development and Supply Agreement (“AZ Agreement”) with AstraZeneca UK Limited (“AstraZeneca”) were amortized on a straight-line basis over a period of 14 months starting in April 2012 and ending upon the expiration of the underlying patent for the tablet and over a period of 11 months starting in July 2012 and ending upon the expiration of the underlying patent for the orally disintegrating tablet. The Zomig® product rights under the AZ Agreement are also being amortized over a period of 72 months starting in July 2012 for the nasal spray. The Company recorded a $3,300,000 adjustment to reduce the initial cost of the Zomig® product rights during the year ended December 31, 2013 as a result of certain gross to net adjustments which were recorded during the second quarter of 2013 as more information became available. In June 2012, the Company entered into a Development, Supply and Distribution Agreement (the “Tolmar Agreement”) with TOLMAR, Inc. (“Tolmar”). Under the terms of the Tolmar Agreement, Tolmar granted to the Company an exclusive license to commercialize up to 11 generic topical prescription drug products, including ten currently approved products and one product pending approval at the FDA, in the United States and its territories. Under the terms of the Tolmar Agreement, Tolmar is responsible for developing and manufacturing the products, and the Company is responsible for the marketing and sale of the products. During the three month period ended September 30, 2013, as a result of the most recent market share data obtained by the Company and the Company’s revised five year projections for the Tolmar product lines, the Company performed an intangible asset impairment test on the Tolmar products and recorded a $13,200,000 impairment charge to cost of revenues for the Global Division, which brought the intangible asset down to its estimated fair value. During the fourth quarter of 2013, the Company made a $12,000,000 payment to Tolmar upon Tolmar’s achievement of a regulatory milestone event in accordance with the terms of the Tolmar Agreement. This amount was capitalized as an intangible asset during the quarter ended December 31, 2013. The carrying value of the Tolmar product rights are being amortized over the remaining estimated useful lives of the underlying products over a period ranging from five to 12 years, starting upon commencement of commercialization activities by the Company during the year ended December 31, 2012. Information concerning the AZ Agreement and the Tolmar Agreement can be found in “Note 12 - Alliance and Collaboration Agreements.” Other product rights consist of Abbreviated New Drug Applications (“ANDAs”) which have been filed with the FDA. During the three month period ended September 30, 2013, as a result of a decision by management to withdraw one of these ANDAs and no longer seek FDA approval, the Company recorded an intangible asset impairment charge of $800,000 in research and development expense, representing the full carrying value of the ANDA. For the remaining ANDAs, the Company will either commence amortization upon FDA approval and commercialization over the estimated useful life of the product rights, or will expense the related costs immediately upon failure to obtain FDA approval. Amortization expense is included as a component of cost of revenues on the consolidated statement of operations and was $13,061,000 and $18,846,000 for the years ended December 31, 2013 and 2012, respectively. No amortization expense was incurred related to the Company’s intangible assets during the year ended December 31, 2011.


The following schedule shows the expected amortization of the Zomig® and Tolmar product rights for the next five years and thereafter:


(in $000’s)

 

Amortization

Expense

 

2014

  $ 9,721  

2015

    5,295  

2016

    4,104  

2017

    3,912  

2018

    2,273  

Thereafter

    2,865  

Total

  $ 28,170  

Note 9 - Accrued Expenses
Accrued Liabilities Disclosure [Text Block]

9. ACCRUED EXPENSES


The following table sets forth the Company’s accrued expenses:


(in $000’s)

 

December 31,
2013

   

December 31,
2012

 

Payroll-related expenses

  $ 27,985     $ 22,553  

Product returns

    28,089       23,440  

Government rebates

    23,351       33,794  

Legal and professional fees

    3,162       3,993  

Clinical trial costs

    (277 )     1,610  

Income taxes payable

    21,186       1,541  

Physician detailing sales force fees

    1,512       1,471  

Other

    6,515       4,340  

Total accrued expenses

  $ 111,523     $ 92,742  

Product Returns


The Company maintains a return policy to allow customers to return product within specified guidelines. The Company estimates a provision for product returns as a percentage of gross sales based upon historical experience for sales made through its Global Products and Impax Products sales channels. Sales of product under the Private Label, Rx Partner and OTC Partner alliance, collaboration and supply agreements are not subject to returns. A roll forward of the return reserve activity for the years ended December 31, 2013, 2012 and 2011 is as follows:


(in $000's)   December 31,     December 31,     December 31,  

Returns Reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 23,440     $ 24,101     $ 33,755  

Provision related to sales recorded in the period

    11,015       3,003       688  

Credits issued during the period

    (6,366 )     (3,664 )     (10,342 )

Ending balance

  $ 28,089     $ 23,440     $ 24,101  

Note 10 - Income Taxes
Income Tax Disclosure [Text Block]

10. INCOME TAXES


The Company is subject to federal, state and local income taxes in the United States, and income taxes in Taiwan, R.O.C. The provision for income taxes is comprised of the following:


 

 

For the Years Ended December 31,

 

(in $000’s)

 

2013

   

2012

   

2011

 
Current:                        

Federal taxes

  $ 67,407     $ 49,636     $ 23,500  

State taxes

    2,569       1,721       1,034  

Foreign taxes

    742       453       1,154  

Total current tax expense

    70,718       51,810       25,688  
                         

Deferred:

                       

Federal taxes

  $ (21,050 )   $ (21,650 )   $ 5,646  

State taxes

    (1,965 )     (2,537 )     592  

Foreign taxes

    (2,022 )     (185 )     690  

Total deferred tax (benefit) expense

    (25,037 )     (24,372 )     6,928  
                         

Provision for income taxes

  $ 45,681     $ 27,438     $ 32,616  

A reconciliation of the difference between the tax provision at the federal statutory rate and actual income taxes on income before income taxes, which includes federal, state, and other income taxes, is as follows:


   

For the Years Ended December 31,

 
(in $000’s)  

2013

   

2012

   

2011

 

Income before income taxes

  $ 146,940             $ 83,311             $ 98,111          

Tax provision at the federal statutory rate

    51,429       35.0 %     29,159       35.0 %     34,339       35.0 %
                                                 

Increase (decrease) in tax rate resulting from:

                                               

Tax rate differential and permanent items on foreign income

    383       0.3 %     (1,259 )     (1.5 )%     185       0.2 %

State income taxes, net of federal benefit

    1,616       1.1 %     1,906       2.3 %     3,673       3.7 %

State research and development credits

    (1,787 )     (1.2 )%     (1,560 )     (1.9 )%     (1,560 )     (1.6 )%

Federal research and development credits

    (1,900 )     (1.3 )%     ---       -- %     (2,100 )     (2.2 )%

Share-based compensation

    92       0.1 %     326       0.4 %     92       0.1 %

Executive compensation

    336       0.2 %     825       1.0 %     586       0.6 %

Domestic manufacturing deduction

    (1,666 )     (1.1 )%     (2,010 )     (2.4 )%     (2,187 )     (2.2 )%

Other permanent book/tax differences

    (967 )     (0.7 )%     (185 )     (0.2 )%     (119 )     (0.1 )%

Provision for uncertain tax positions

    1,718       1.1 %     801       0.9 %     178       0.2 %

Revision of prior years’ estimates

    (1,150 )     (0.8 )%     (392 )     (0.5 )%     (309 )     (0.3 )%

Prior year Federal research and development credits

    (1,950 )     (1.3 )%     ---       --     ---       -- %

Other, net

    (473 )     (0.3 )%     (173 )     (0.2 )%     (162 )     (0.2 )%

Provision for income taxes

  $ 45,681       31.1 %   $ 27,438       32.9 %   $ 32,616       33.2 %

On January 3, 2013, the research and development credit (the “R&D credit”) was reinstated retroactively as a part of The American Taxpayer Relief Act of 2012 for expenses paid or incurred from January 1, 2012 through December 31, 2012.  Due to the fact that this legislation was not enacted prior to the Company’s 2012 year-end, no tax benefit related to potential R&D credits was reflected within the 2012 yearend tax provision. The 2012 R&D credit was reflected within the Company’s first quarter tax provision for the year ended December 31, 2013.


Deferred income taxes result from temporary differences between the financial statement carrying values and the tax bases of the Company’s assets and liabilities. Deferred tax assets principally result from deferred revenue related to certain of the Company’s alliance and collaboration agreements (see “Note 12 – Alliance and Collaboration Agreements” below for a discussion of the Company's alliance and collaboration agreements), certain accruals and reserves currently not deductible for tax purposes, acquired product rights and intangibles, capitalized legal and share based compensation expense. Deferred tax liabilities principally result from the use of accelerated depreciation methods for income tax purposes. The components of the Company’s deferred tax assets and liabilities are as follows:


   

December 31,

 

(in $000’s)

 

2013

   

2012

 

Deferred tax assets:

               

Deferred revenues

  $ 2,961     $ 4,545  

Accrued expenses

    44,404       38,839  

Inventory reserves

    6,681       2,630  

Net operating loss carryforwards

    61       149  

Depreciation and amortization

    275       428  

Acquired product rights and intangibles

    15,147       7,284  

Capitalized legal fees

    11,245       6,981  

R&D credit carryforwards

    3,238       2,062  

Share based compensation expense

    4,786       3,446  

Other

    745       850  

Deferred tax assets

  $ 89,543     $ 67,214  
                 

Deferred tax liabilities:

               

Tax depreciation and amortization in excess of book amounts

  $ 2,592     $ 3,544  

Deferred manufacturing costs

    65       80  

Other

    2,172       1,810  

Deferred tax liabilities

  $ 4,829     $ 5,434  
                 

Deferred tax assets, net

  $ 84,714     $ 61,780  

The breakdown between current and long-term deferred tax assets and tax liabilities is as follows:


   

December 31,

 

(in $000’s)

 

2013

   

2012

 

Current deferred tax assets

  $ 52,959     $ 44,196  

Current deferred tax liabilities

    (2,171 )     (1,810 )

Current deferred tax assets, net

    50,788       42,386  
                 

Non-current deferred tax assets

    36,583       23,018  

Non-current deferred tax liabilities

    (2,657 )     (3,624 )

Non-current deferred tax assets, net

    33,926       19,394  
                 

Deferred tax assets, net

  $ 84,714     $ 61,780  

Certain current deferred tax liabilities are included in Accrued Expenses on the consolidated balance sheet as of December 31, 2012. 


As of December 31, 2013, the Company had gross foreign net operating loss (NOL) carryforwards of $244,000, with a nine-year carryforward period, expiring in 2022.


A rollforward of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows:


(in $000’s)

 

For the Years Ended December 31,

 
   

2013

   

2012

   

2011

 

Unrecognized tax benefits beginning of year

  $ 2,920     $ 1,791     $ 1,579  

Gross change for current year positions

    797       249       188  

Gross change for prior period positions

    1,575       1,231       24  

Decrease due to settlements and payments

    --       (351 )     --  

Decrease due to statute expirations

    --       --       --  

Unrecognized tax benefits end of year

  $ 5,292     $ 2,920     $ 1,791  

The amount of unrecognized tax benefits at December 31, 2013, 2012 and 2011 was $5.3 million, $2.9 million and $1.8 million respectively, of which $4.1 million, $2.3 million and $1.5 million would impact the Company’s effective tax rate, respectively, if recognized. The Company currently does not believe that the total amount of unrecognized tax benefits will increase or decrease significantly over the next twelve months. Interest expense related to income taxes is included in “Interest expense” on the consolidated statement of operations. Net interest expense related to unrecognized tax benefits for the year ended December 31, 2013 was $299,000, compared to $3,000 in 2012, principally due to the settlement of the 2008-2009 Internal Revenue Service (‘‘IRS’’) audit, compared to an expense of $85,000 in 2011. Accrued interest expense as of December 31, 2013 and 2012 was $602,000 and $303,000, respectively. Income tax penalties are included in “Other income (expense)” on the consolidated statement of operations. Accrued tax penalties are not significant.


The Company is currently not under audit for its federal income tax, but is currently under audit by the State of California Franchise Tax Board for the tax years ended December 31, 2009, 2008, 2007. During 2013, the Company began and settled a 2010 audit by the Pennsylvania Department of Revenue.


No provision has been made for U.S. federal deferred income taxes on accumulated earnings on foreign subsidiaries since it is the current intention of management to indefinitely reinvest the undistributed earnings in the foreign subsidiary.


Note 11 - Revolving Line of Credit
Line Of Credit Facilities [Text Block]

11. REVOLVING LINE OF CREDIT


The Company has a Credit Agreement, as amended (the “Credit Agreement”) with Wells Fargo Bank, N.A., as a lender and as administrative agent (the “Administrative Agent”). The Credit Agreement provides the Company with a revolving line of credit in the aggregate principal amount of up to $50,000,000 (the “Revolving Credit Facility”). Under the Revolving Credit Facility, up to $10,000,000 is available for letters of credit, the outstanding face amounts of which reduce availability under the Revolving Credit Facility on a dollar for dollar basis. Proceeds under the Credit Agreement may be used for working capital, general corporate and other lawful purposes. The Company has not yet borrowed any amounts under the Revolving Credit Facility.


The Company’s borrowings under the Credit Agreement are secured by substantially all of the personal property assets of the Company pursuant to a Security Agreement (the “Security Agreement”) entered into by the Company and the Administrative Agent. As further security, the Company also pledged to the Administrative Agent, 65% of the Company’s equity interest in its wholly owned subsidiary Impax Laboratories (Taiwan), Inc., all of the Company’s equity interests in its wholly owned domestic subsidiaries and must similarly pledge all or a portion of its equity interest in future subsidiaries. Under the Credit Agreement, among other things:


 

The outstanding principal amount of all revolving credit loans, together with accrued and unpaid interest thereon, will be due and payable on the maturity date, which will occur four years following the February 11, 2011 closing date.


 

Borrowings under the Revolving Credit Facility will bear interest, at the Company’s option, at either an Alternate Base Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 0.5% to 1.5%, or a LIBOR Rate (as defined in the Credit Agreement) plus the applicable margin in effect from time to time ranging from 1.5% to 2.5%. The Company is also required to pay an unused commitment fee ranging from 0.25% to 0.45% per annum based on the daily average undrawn portion of the Revolving Credit Facility. The applicable margin described above and the unused commitment fee in effect at any given time will be determined based on the Company’s Total Net Leverage Ratio (as defined in the Credit Agreement), which is based upon the Company’s consolidated total debt, net of unrestricted cash in excess of $100 million, compared to Consolidated EBITDA (as defined in the Credit Agreement) for the immediately preceding four quarters.


 

The Company may prepay any outstanding loan under the Revolving Credit Facility without premium or penalty.

     
 

The Company is required under the Credit Agreement and the Security Agreement to comply with a number of affirmative, negative and financial covenants. Among other things, these covenants (i) require the Company to provide periodic reports, notices of material events and information regarding collateral, (ii) restrict the Company’s ability, subject to certain exceptions and baskets, to incur additional indebtedness, grant liens on assets, undergo fundamental changes, change the nature of its business, make investments, undertake acquisitions, sell assets, make restricted payments (including the ability to pay dividends and repurchase stock) or engage in affiliate transactions, and (iii) require the Company to maintain a Total Net Leverage Ratio (which is, generally, total funded debt, net of unrestricted cash in excess of $100 million, over EBITDA for the preceding four quarters) of less than 3.75 to 1.00, a Senior Secured Leverage Ratio (which is, generally, total senior secured debt over EBITDA for the preceding four quarters) of less than 2.50 to 1.00 and a Fixed Charge Coverage Ratio (which is, generally, EBITDA for the preceding four quarters over the sum of cash interest expense, cash tax payments, scheduled funded debt payments and capital expenditures during such four quarter period, subject to certain specified exceptions) of at least 2.00 to 1.00 (with each such ratio as more particularly defined as set forth in the Credit Agreement). As of December 31, 2013, the Company was in compliance with the various covenants contained in the Credit Agreement and the Security Agreement. The Company entered into an amendment to the Credit Agreement on February 20, 2014 which amended certain of the financial covenants under the Credit Agreement as follows: (A) addition to the calculation of Consolidated EBITDA of (x) non-recurring remediation and restructuring charges not to exceed $25.0 million and (y) non-cash charges related to the impairment of intangible assets, in each case as incurred by the Company and its subsidiaries during fiscal year 2014; (B) revision to the Fixed Charge Coverage Ratio covenant (as described above) such that the Company is not required to maintain a Fixed Charge Ratio after the year ended December 31, 2013; and (C) addition of two covenants requiring the Company to maintain Consolidated EBITDA of at least $50.0 million and Minimum Liquidity (which is, generally unrestricted cash and cash equivalents) of at least $100.0 million, in each case beginning with the quarter ended March 31, 2014.


 

The Credit Agreement contains customary events of default (subject to customary grace periods, cure rights and materiality thresholds), including, among others, failure to pay principal, interest or fees, violation of covenants, material inaccuracy of representations and warranties, cross-default and cross-acceleration of material indebtedness and other obligations, certain bankruptcy and insolvency events, certain judgments, certain events related to the Employee Retirement Income Security Act of 1974, as amended, and a change of control.

     
 

Following an event of default under the Credit Agreement, the Administrative Agent would be entitled to take various actions, including the acceleration of amounts due under the Credit Agreement and seek other remedies that may be taken by secured creditors.


During the years ended December 31, 2013, 2012 and 2011, unused line fees incurred under the Credit Agreement and our former credit agreement, which we terminated in February 2011, were $139,000, $95,000 and $144,000, respectively.


Note 12 - Alliance and Collaboration Agreements
Collaborative Arrangement Disclosure [Text Block]
12. ALLIANCE AND COLLABORATION AGREEMENTS

The Company has entered into several alliance, collaboration, license and distribution agreements, and similar agreements with respect to certain of its products and services, with unrelated third-party pharmaceutical companies. The statement of operations includes revenue recognized under agreements the Company has entered into to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform, revenue recognized under development agreements which generally obligate the Company to provide research and development services over multiple periods, and revenue recognized under a promotional services agreement which obligates the Company to provide physician detailing sales calls services to promote its promotional partner’s branded drug products over multiple periods.


The Company’s alliance and collaboration agreements often include milestones and provide for milestone payments upon achievement of these milestones. Generally, the milestone events contained in the Company’s alliance and collaboration agreements coincide with the progression of the Company’s products and technologies from pre-commercialization to commercialization.


The Company groups pre-commercialization milestones in its alliance and collaboration agreements into clinical and regulatory categories, each of which may include the following types of events:


Clinical Milestone Events:


 

Designation of a development candidate. Following the designation of a development candidate, generally, IND-enabling animal studies for a new development candidate take 12 to 18 months to complete.


 

Initiation of a Phase I clinical trial. Generally, Phase I clinical trials take one to two years to complete.


 

Initiation or completion of a Phase II clinical trial. Generally, Phase II clinical trials take one to three years to complete.


 

Initiation or completion of a Phase III clinical trial. Generally, Phase III clinical trials take two to four years to complete.


 

Completion of a bioequivalence study. Generally, bioequivalence studies take three months to one year to complete.


Regulatory Milestone Events:


 

Filing or acceptance of regulatory applications for marketing approval such as a New Drug Application in the United States or Marketing Authorization Application in Europe. Generally, it takes six to 12 months to prepare and submit regulatory filings and approximately two months for a regulatory filing to be accepted for substantive review.


 

Marketing approval in a major market, such as the United States or Europe. Generally it takes one to three years after an application is submitted to obtain approval from the applicable regulatory agency.


 

Marketing approval in a major market, such as the United States or Europe for a new indication of an already-approved product. Generally it takes one to three years after an application for a new indication is submitted to obtain approval from the applicable regulatory agency.


Commercialization milestones in the Company’s alliance and collaboration agreements may include the following types of events:


 

First commercial sale in a particular market, such as in the United States or Europe.

 

Product sales in excess of a pre-specified threshold, such as annual sales exceeding $100 million. The amount of time to achieve this type of milestone depends on several factors including but not limited to the dollar amount of the threshold, the pricing of the product and the pace at which customers begin using the product.


License and Distribution Agreement with Shire


In January 2006, the Company entered into a License and Distribution Agreement with an affiliate of Shire Laboratories, Inc., which was subsequently amended (“Prior Shire Agreement”), under which the Company received a non-exclusive license to market and sell an authorized generic of Shire’s Adderall XR® product (“AG Product”) subject to certain conditions, but in any event by no later than January 1, 2010. The Company commenced sales of the AG Product in October 2009. On February 7, 2013, the Company entered into an Amended and Restated License and Distribution Agreement with Shire (the “Amended and Restated Shire Agreement”), which amended and restated the Prior Shire Agreement. The Amended and Restated Shire Agreement was entered into by the parties in connection with the settlement of the Company’s litigation with Shire relating to Shire’s supply of the AG Product to the Company under the Prior Shire Agreement. During 2013, the Company received a payment of $48,000,000 from Shire in connection with such litigation settlement, which was recorded in the first quarter of 2013 under the line item “Other Income” on the consolidated statement of operations. The Amended and Restated Shire Agreement provides for Shire to supply the AG Product and for the Company to market and sell the AG Product subject to the terms and conditions thereof until the earlier of (i) the first commercial sale of the Company’s generic equivalent product to Adderall XR® and (ii) September 30, 2014 (the “Supply Term”), subject to certain continuing obligations of the parties upon expiration or early termination of the Supply Term, including Shire’s obligation to deliver AG Products still owed to the Company as of the end of the Supply Term. The Company is required to pay a profit share to Shire on sales of the AG Product, of which the Company owed a profit share payable to Shire of $20,406,000, $70,948,000 and $107,145,000 on sales of the AG Product during the years ended December 31, 2013, 2012 and 2011, respectively, with a corresponding charge included in the cost of revenues line in the consolidated statement of operations. At the end of the Supply Term, the Company will be permitted to sell any AG Products in our inventory or owed to the Company by Shire under the Amended and Restated Shire Agreement until all such products are sold and the Company will continue to pay a profit share to Shire on such sales.


Development, Supply and Distribution Agreement with TOLMAR, Inc.


In June 2012, the Company entered into the Tolmar Agreement with Tolmar.  Under the terms of the Tolmar Agreement, Tolmar granted to the Company an exclusive license to commercialize up to 11 generic topical prescription drug products, including ten currently approved products and one product pending approval at the FDA, in the United States and its territories.  Under the terms of the Tolmar Agreement, Tolmar is responsible for developing and manufacturing the products, and the Company is responsible for marketing and sale of the products.  The Company is required to pay a profit share to Tolmar on sales of each product commercialized pursuant to the terms of the Tolmar Agreement. The Company paid Tolmar a $21,000,000 upfront payment upon signing of the agreement and a $1,000,000 milestone payment in the year ended December 31, 2012. During the fourth quarter ended December 31, 2013, the Company made a $12,000,000 payment to Tolmar upon Tolmar’s achievement of a regulatory milestone event in accordance with the terms of the agreement. Under the Tolmar Agreement, the Company has the potential to pay up to an aggregate of $12,000,000 in additional contingent milestone payments if certain commercialization events occur.  The upfront payment for the Tolmar product rights has been allocated to the underlying topical products based upon the relative fair value of each product and will be amortized over the remaining estimated useful life of each underlying product, ranging from five to 12 years, starting upon commencement of commercialization activities by the Company during the second half of 2012.  The amortization of the Tolmar product rights has been included as a component of cost of revenues on the consolidated statement of operations.  The Company initially allocated $1,550,000 of the upfront payment to two products which are still in development and has recorded such amount as in-process research and development expense in its results of operations for the year ended December 31, 2012. The Company similarly recorded the $1,000,000 milestone paid in the year ended December 31, 2012 as a research and development expense.


Contingent milestone payments will be initially recognized in the period the triggering event occurs.  Milestone payments which are contingent upon commercialization events will be accounted for as an additional cost of acquiring the product license rights.  Milestone payments which are contingent upon regulatory approval events will be capitalized and amortized over the remaining estimated useful life of the approved product.  As discussed in “Note 8 – Goodwill and Intangible Assets,” the Company recorded a $13.2 million intangible asset impairment charge to cost of revenues in the three month period ended September 30, 2013 related to the Tolmar product rights acquired under the Tolmar Agreement. During the fourth quarter of 2013, the Company made a $12.0 million payment to Tolmar upon Tolmar’s achievement of a regulatory milestone event in accordance with the terms of the Tolmar Agreement.


The Company entered into a Loan and Security Agreement with Tolmar in March 2012 (the “Tolmar Loan Agreement”), under which the Company has agreed to lend to Tolmar one or more loans through December 31, 2014, in an aggregate amount not to exceed $15,000,000. As of December 31, 2013, Tolmar has borrowed $15,000,000 under the Tolmar Loan Agreement, which is included in “Other Assets” on the consolidated balance sheet. The outstanding principal amount of, including any accrued and unpaid interest on, the loans under the Tolmar Loan Agreement are payable by Tolmar beginning from March 31, 2017 through March 31, 2020 or the maturity date, in accordance with the terms therein. Tolmar may prepay all or any portion of the outstanding balance of the loans prior to the maturity date without penalty or premium.


Strategic Alliance Agreement with Teva


The Company entered into a Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited, in June 2001 (“Teva Agreement”). The Teva Agreement commits the Company to develop and manufacture, and Teva to distribute, a specified number controlled release generic pharmaceutical products (“generic products”), each for a 10-year period. The Company is required to develop the products, obtain FDA approval to market the products, and manufacture the products for Teva. The revenue the Company earns from the sale of product under the Teva Agreement consists of Teva’s reimbursement of the Company’s manufacturing costs plus a profit share on Teva’s sales of the product to its customers. The Company invoices Teva for the manufacturing costs or products it ships to Teva and payment is due within 30 days. Teva has the right to determine all terms and conditions of the product sales to its customers. Within 30 days of the end of each calendar quarter, Teva is required to provide the Company with a report of its net sales and profits during the quarter and to pay the Company its share of the profits resulting from those sales. Net sales are Teva’s gross sales less discounts, rebates, chargebacks, returns, and other adjustments, all of which are based upon fixed percentages, except chargebacks, which are estimated by Teva and subject to a true-up reconciliation. The Company identified the following deliverables under the Teva Agreement: (i) the manufacture and delivery of generic products; (ii) the provision of research and development activities (including regulatory services) related to each product; and (iii) market exclusivity associated with the products.


In July 2010, the Teva Agreement was amended to terminate the provisions of the Teva Agreement with respect to the Omeprazole (generic to Prilosec®) 10mg, 20mg and 40mg products. Additionally, in exchange for the return of product rights, the Company agreed to pay to Teva a profit share on future sales of the fexofenadine HCI/psuedoephedrine (generic to Allegra-D®) products, if any, but in no event will such profit share payments exceed an aggregate amount of $3,000,000. As the July 2010 amendment materially modified the Teva Agreement, the Company elected to apply the updated guidance of FASB ASC 605-25 Multiple Element Arrangements (“ASC 605-25”) to the amended Teva Agreement beginning in the three months ended September 30, 2010. The Company evaluated the deliverables of the amended Teva Agreement under the updated guidance of ASC 605-25 and determined there are two units of accounting, including: a combined unit consisting of research and development activities plus market exclusivity, and the manufacture and delivery of 10 products (i.e. contract manufacturing). The market exclusivity deliverable does not meet the criteria for separation as it does not have standalone value to Teva. As the products contemplated by the Teva Agreement were to be developed by the Company, the market exclusivity has no value to Teva without the research and development services needed to complete the products. The contract manufacturing deliverable has standalone value to Teva as it is able to resell the delivered items (i.e. finished product) to third-parties. 


The consideration received by the Company from Teva under the Teva Agreement is contingent upon future performance, as such the Company was unable to allocate any of the consideration received to delivered items, and therefore the Company looked to the underlying services which give rise to the payment of consideration by Teva to determine the appropriate recognition of revenue as follows:


 

-

Research and development related activities (the Combined Unit) – Consideration received as a result of research and development related activities performed under the Teva Agreement is initially deferred and recognized on the straight-line method over the Company’s expected period of performance of the research and development related services, estimated to be from July 2001 to October 2014 (with FDA approval of the ANDA for the final product under the Teva Agreement).

 

 

 

 

-

Manufacture and delivery of the products – Consideration received as a result of the manufacture and delivery of the products under the Teva Agreement is recognized under the Company’s revenue recognition policy applicable to its Global products.

 

 

 

 

-

Profit share – The Company recognizes profit share, if any, as current period revenue when earned.


The Company applied the updated guidance of ASC 605-25 to the Teva Agreement on a prospective basis beginning in the quarter ended September 30, 2010. The following tables show the additions to and deductions from the deferred revenue under the Teva Agreement:


   

For the Years Ended December 31,

 

(in $000’s)

                       

Deferred revenue

 

2013

   

2012

   

2011

 

Beginning balance

  $ 2,396     $ 3,705     $ 4,410  
                         

Additions

    ---       ---       551  
                         

Less amounts recognized

    (1,309 )     (1,309 )     (1,256 )
                         

Ending deferred revenue

  $ 1,087     $ 2,396     $ 3,705  

The following schedule shows the expected recognition of deferred revenue, for transactions recorded through December 31, 2013, for the next five years and thereafter under the Teva Agreement:


(in $000s)

Deferred Revenue

Recognition

 

2014

$ 1,087  

2015

  ---  

2016

  ---  

2017

  ---  

2018

  ---  

Thereafter

  ---  
Total $ 1,087  

OTC Partner Alliance Agreement


In June 2002, the Company entered into a Development, License and Supply Agreement with Pfizer, Inc., formerly Wyeth LLC (“Pfizer”), for a term of approximately 15 years, relating to the Company’s Loratadine and Pseudoephedrine Sulfate 5 mg/120 mg 12-hour Extended Release Tablets and Loratadine and Pseudoephedrine Sulfate 10 mg/240 mg 24-hour Extended Release Tablets for the OTC market. The Company previously developed the products, and is currently only responsible for manufacturing the products, and Pfizer is responsible for marketing and sale. The agreement included payments to the Company upon achievement of development milestones, as well as royalties paid to the Company by Pfizer on its sales of the product. Pfizer launched this product in May 2003 as Alavert® D-12 Hour. In February 2005, the agreement was partially cancelled with respect to the 24-hour Extended Release Product due to lower than planned sales volume. In December 2011, Pfizer and the Company entered into an agreement with L. Perrigo Company (“Perrigo”) whereby the parties agreed that the Company would supply the Company’s generic Claritin-D® 5 mg/120 mg 12-hour extended release product tablets to Perrigo in the United States and its territories. The agreements with Pfizer and Perrigo are no longer a core area of the Company’s business, and the over-the-counter pharmaceutical products the Company sells to Pfizer and Perrigo under the agreements are older products which are only sold to Pfizer and Perrigo, and which are sold at a loss, on a fully absorbed basis. As noted above, the Company is currently only required to manufacture the products under its agreements with Pfizer and Perrigo. In order to avoid deferring the losses incurred upon shipment of these products to Pfizer and Perrigo, the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer or Perrigo, as applicable, which is generally when the product is shipped. The Company recognizes profit share revenue in the period earned.


Agreements with Valeant Pharmaceuticals International, Inc.


In November 2008, the Company and Valeant Pharmaceuticals International, Inc., formerly Medicis Pharmaceutical Corporation (“Valeant”), entered into a Joint Development Agreement and a License and Settlement Agreement (“Joint Development Agreement”).


Joint Development Agreement


The Joint Development Agreement provides for the Company and Valeant to collaborate in the development of a total of five dermatology products, including four of the Company’s generic products and one branded advanced form of Valeant’s SOLODYN® product. Under the provisions of the Joint Development Agreement the Company received a $40,000,000 upfront payment, paid by Valeant in December 2008. The Company has also received an aggregate of $15,000,000 in milestone payments composed of two $5,000,000 milestone payments, paid by Valeant in March 2009 and September 2009, a $2,000,000 milestone payment paid by Valeant in December 2009, and a $3,000,000 milestone payment paid by Valeant in March 2011. The Company has the potential to receive up to an additional $8,000,000 of contingent regulatory milestone payments each of which the Company believes to be substantive, as well as the potential to receive royalty payments from sales, if any, by Valeant of its advanced form SOLODYN® brand product. Finally, to the extent the Company commercializes any of its four generic dermatology products covered by the Joint Development Agreement, the Company will pay to Valeant a gross profit share on sales of such products. The Company began selling one of the four generic dermatology products during the year ended December 31, 2011.


The Joint Development Agreement results in three items of revenue for the Company, as follows:


1.     Research & Development Services


Revenue received from the provision of research and development services including the $40,000,000 upfront payment and the $12,000,000 of milestone payments received prior to January 1, 2011, have been deferred and are being recognized on a straight-line basis over the expected period of performance of the research and development services. During the three month period ended March 31, 2013, the Company extended the revenue recognition period for the Joint Development Agreement from the previous recognition period ending in November 2013 to December 2014, due to changes in the estimated timing of completion of certain research and development activities. This change was made on a prospective basis, and resulted in a reduced periodic amount of revenue recognized in current and future periods. Revenue from the remaining $8,000,000 of contingent milestone payments, including the $3,000,000 received from Valeant in March 2011, will be recognized using the Milestone Method of accounting. Deferred revenue is recorded as a liability captioned “Deferred revenue.” Revenue recognized under the Joint Development Agreement is included in “Note 20 - Supplementary Financial Information”, in the line item captioned “Other Revenues”. The Company determined the straight-line method better aligns revenue recognition with performance as the level of research and development services delivered under the Joint Development Agreement are expected to be provided on a relatively constant basis over the period of performance.


2.     Royalty Fees Earned — Valeant’s Sale of Advanced Form SOLODYN® (Brand) Product


Under the Joint Development Agreement, the Company granted Valeant a license for the advanced form of the SOLODYN® product, with the Company receiving royalty fee income under such license for a period ending eight years after the first commercial sale of the advanced form SOLODYN® product. Commercial sales of the new SOLODYN® product, if any, are expected to commence upon FDA approval of Valeant’s NDA. The royalty fee income, if any, from the new SOLODYN® product, will be recognized by the Company as current period revenue when earned.


3.     Accounting for Sales of the Company’s Four Generic Dermatology Products


Upon FDA approval of the Company’s ANDA for each of the four generic products covered by the Joint Development Agreement, the Company will have the right (but not the obligation) to begin manufacture and sale of its four generic dermatology products. The Company sells its manufactured generic products to all Global Division customers in the ordinary course of business through its Global Product sales channel. The Company accounts for the sale, if any, of the generic products covered by the Joint Development Agreement as current period revenue according to the Company’s revenue recognition policy applicable to its Global products. To the extent the Company sells any of the four generic dermatology products covered by the Joint Development Agreement, the Company pays Valeant a gross profit share, with such profit share payments accounted for as a current period cost of goods sold.


The following table shows the additions to and deductions from deferred revenue under the Joint Development Agreement with Valeant:


(in $000’s) For the Years Ended December 31,    
Deferred revenue 2013   2012   2011  

Beginning balance

$ 3,650   $ 12,410   $ 25,948  

Less amount recognized

  (1,825 )   (8,760 )   (13,538 )

Ending deferred revenue

$ 1,825   $ 3,650   $ 12,410  

The following schedule shows the expected recognition of deferred revenue, for transactions recorded through December 31, 2013, for the next five years and thereafter under the Joint Development Agreement with Valeant:


(in $000’s)    

Deferred

Revenue

Recognition

 

2014

  $ 1,825  

2015

    ---  

2016

    ---  

2017

    ---  

2018

    ---  

Thereafter

    ---  
Total   $ 1,825  

Development and Co-Promotion Agreement with Endo Pharmaceuticals Inc.


In June 2010, the Company and Endo Pharmaceuticals, Inc. ("Endo") entered into a Development and Co-Promotion Agreement (“Endo Agreement”) under which the Company and Endo have agreed to collaborate in the development and commercialization of a next-generation advanced form of the Company’s lead branded product candidate ("Endo Agreement Product"). Under the provisions of the Endo Agreement, in June 2010, Endo paid to the Company a $10,000,000 upfront payment. The Company has the potential to receive up to an additional $30,000,000 of contingent milestone payments which includes $15,000,000 contingent upon the achievement of clinical events, $5,000,000 contingent upon the achievement of regulatory events, and $10,000,000 upon the achievement of commercialization events. The Company believes all milestones under the Endo Agreement are substantive. Upon commercialization of the Endo Agreement Product in the United States, Endo will have the right to co-promote such product to non-neurologists, which will require the Company to pay Endo a co-promotion service fee of up to 100% of the gross profits attributable to prescriptions for the Endo Agreement Product which are written by the non-neurologists.


The Company is recognizing the $10,000,000 upfront payment as revenue on a straight-line basis over a period of 91 months, which is the estimated expected period of performance of research and development activities under the Endo Agreement, commencing with the June 2010 effective date of the Endo Agreement and ending in December 2017, the estimated date of FDA approval of the Company's NDA. The FDA approval of the Endo Agreement Product NDA represents the end of the Company’s expected period of performance, as the Company will have no further contractual obligation to perform research and development activities under the Endo Agreement, and therefore the earnings process will be completed. Deferred revenue is recorded as a liability captioned “Deferred revenue” on the consolidated balance sheet and deferred revenue under the Endo Agreement was $5,338,000 as of December 31, 2013. Revenue recognized under the Endo Agreement is reported on the consolidated statement of operations, in the line item captioned Research Partner. The Company determined the straight-line method aligns revenue recognition with performance as the level of research and development activities performed under the Endo Agreement are expected to be performed on a ratable basis over the Company’s estimated expected period of performance. Upon FDA approval of the Company’s Endo Agreement Product NDA, the Company will have the right (but not the obligation) to begin manufacture and sale of such product. The Company will sell its manufactured branded product to customers in the ordinary course of business through its Impax Pharmaceuticals Division. The Company will account for any sale of the product covered by the Endo Agreement as current period revenue. The co-promotion service fee paid to Endo, as described above, if any, will be accounted for as a current period selling expense as incurred.


The Company and Endo also entered into a Settlement and License Agreement in June 2010 (the “Endo Settlement Agreement”) pursuant to which Endo agreed to make a payment to the Company should prescription sales of Opana® ER (as defined in the Endo Settlement Agreement) fall below a predetermined contractual threshold in the quarter immediately prior to the Company launching a generic version of Opana® ER. As a result of the Company’s launch of its generic version of Opana ER in January 2013 and Endo’s prescription sales of Opana ER during the fourth quarter of 2012, the Company recorded a $102,049,000 settlement gain during the three month period ended March 31, 2013, which is included in “Other Income” in the consolidated statement of operations. Payment of the $102,049,000 settlement was received from Endo in April 2013.


License, Development and Commercialization Agreement with Glaxo Group Limited


In December 2010, the Company entered into a License, Development and Commercialization Agreement with Glaxo Group Limited (“GSK”). Under the terms of the agreement with GSK, GSK received an exclusive license to develop and commercialize IPX066 (brand name RYTARYTM in the United States) throughout the world, except in the United States and Taiwan, and certain follow-on products at the option of GSK. Under the terms of the agreement, GSK paid an $11,500,000 upfront payment in December 2010, and the Company had the potential to receive up to $169,000,000 of contingent milestone payments. The upfront payment was recognized as revenue on a straight-line basis over the Company’s expected period of performance to provide research and development services which ended on December 31, 2012. In April 2013, the Company and GSK announced that they were terminating their collaboration for the development and commercialization of IPX066 outside the United States and Taiwan as a result of delays in the anticipated regulatory approval and launch dates in countries in which GSK had rights to commercialize the product and terminated the License, Development and Commercialization Agreement. At the end of July 2013, GSK’s rights to develop and commercialize IPX066 outside the United States and Taiwan were transferred back to the Company.


Distribution, License, Development and Supply Agreement with AstraZeneca UK Limited


In January 2012, the Company entered into the AZ Agreement with AstraZeneca. Under the terms of the AZ Agreement, AstraZeneca granted to the Company an exclusive license to commercialize the tablet, orally disintegrating tablet and nasal spray formulations of Zomig® (zolmitriptan) products for the treatment of migraine headaches in the United States and in certain U.S. territories, except during an initial transition period when AstraZeneca fulfilled all orders of Zomig® products on the Company’s behalf and AstraZeneca paid to the Company the gross profit on such Zomig® products. The Company is obligated to fulfill certain minimum requirements with respect to the promotion of currently approved Zomig® products as well as other dosage strengths of such products approved by the FDA in the future. The Company may, but has no obligation to, develop and commercialize additional products containing zolmitriptan and additional indications for Zomig®, subject to certain restrictions as set forth in the AZ Agreement. The Company will be responsible for conducting clinical studies and preparing regulatory filings related to the development of any such additional products and would bear all related costs. During the term of the AZ Agreement, AstraZeneca will continue to be the holder of the NDA for existing Zomig® products, as well as any future dosage strengths thereof approved by the FDA, and will be responsible for certain regulatory and quality-related activities for such Zomig® products. AstraZeneca will manufacture and supply Zomig® products to the Company and the Company will purchase its requirements of Zomig® products from AstraZeneca until a date determined in the AZ Agreement. Thereafter, AstraZeneca may terminate its supply obligations upon certain advance notice to the Company, in which case the Company would have the right to manufacture or have manufactured its own requirements for the applicable Zomig® product.


Under the terms of the AZ Agreement, AstraZeneca was required to make payments to the Company representing 100% of the gross profit on sales of AstraZeneca-labeled Zomig® products during the specified transition period. The Company received transition payments from AstraZeneca aggregating $43,564,000 during 2012, and accounted for these payments as a reduction of the $130,000,000 in quarterly payments made to AstraZeneca during 2012. The Company allocated $45,096,000 of the $86,436,000 net payments made to AstraZeneca to an intangible asset, and the remaining $41,340,000 to prepaid royalty expense related to sales of Impax-labeled Zomig® products during 2012, with such royalty expense included in cost of revenues on the consolidated statement of operations. Beginning in January 2013, the Company is obligated to pay AstraZeneca tiered royalties on net sales of branded Zomig® products, depending on brand exclusivity and subject to customary reductions and other terms and conditions set forth in the AZ Agreement. The Company is also obligated to pay AstraZeneca royalties after a certain specified date based on gross profit from sales of authorized generic versions of the Zomig® products subject to certain terms and conditions set forth in the AZ Agreement. In May 2013, the Company’s exclusivity period for branded Zomig® tablets and orally disintegrating tablets expired and the Company launched authorized generic versions of those products in the United States.


Co-Promotion Agreement with Pfizer


In March 2010, the Company and Pfizer, Inc. (“Pfizer”) entered into the First Amendment to the Co-Promotion Agreement (originally entered into with Wyeth LLC, now a wholly owned subsidiary of Pfizer) ("Pfizer Co-Promotion Agreement"). The Company’s obligation to provide physician detailing sales calls under the Pfizer Co-Promotion Agreement ended on June 30, 2012. Prior to such time, the Company had received a fixed fee, effective January 1, 2010, for providing such physician detailing sales calls within a contractually defined range of an aggregate number of physician detailing sales calls rendered, determined on a quarterly basis. The Company recognized the physician detailing sales force fee revenue as the related services were performed and the performance obligations were met. The Company recognized $7,070,000 and $14,140,000 in the years ended December 31, 2012 and 2011, respectively, with such amounts included in the line item “Other Revenues” in “Note 20 - Supplementary Financial Information.”


Note 13 - Employee Benefit Plans
Compensation and Employee Benefit Plans [Text Block]
13. EMPLOYEE BENEFIT PLANS

401(k) Defined Contribution Plan


The Company sponsors a 401(k) defined contribution plan covering all employees. Participants are permitted to contribute up to 25% of their eligible annual pre-tax compensation up to established federal limits on aggregate participant contributions. The Company matches 50% of the employee contributions up to a maximum of 3% of employee compensation. Discretionary profit-sharing contributions made by the Company, if any, are determined annually by the Board of Directors. Participants are 100% vested in discretionary profit-sharing and matching contributions made by the Company after three years of service, and are 25% and 50% vested after one and two years of service, respectively. There were $1,501,000, $1,428,000 and $1,254,000 in matching contributions and no discretionary profit-sharing contributions made under this plan for the years ended December 31, 2013, 2012 and 2011, respectively.


Employee Stock Purchase Plan


In February 2001, the Board of Directors of the Company approved the 2001 Non-Qualified Employee Stock Purchase Plan (“ESPP”), with a 500,000 share reservation. The purpose of the ESPP is to enhance employee interest in the success and progress of the Company by encouraging employee ownership of common stock of the Company. The ESPP provides the opportunity to purchase the Company’s common stock at a 15% discount to the market price through payroll deductions or lump sum cash investments. Under the ESPP plan, for the years ended December 31, 2013, 2012 and 2011, the Company sold shares of its common stock to its employees in the amount of 39,748, 44,731 and 47,128, respectively, for net proceeds of $660,000, $829,000 and $887,000, respectively.


Deferred Compensation Plan


In February 2002, the Board of Directors of the Company approved the Executive Non-Qualified Deferred Compensation Plan (“ENQDCP”) effective August 15, 2002 covering executive level employees of the Company as designated by the Board of Directors. Participants can defer up to 75% of their base salary and quarterly sales bonus and up to 100% of their annual performance based bonus. The Company matches 50% of employee deferrals up to 10% of base salary and bonus compensation. The maximum total match by the company cannot exceed 5% of total base and bonus compensation. Participants are vested in the employer match contribution at 20% each year, with 100% vesting after five years of employment. Participants can earn a return on their deferred compensation based on hypothetical investments in investment funds. Changes in the market value of the participant deferrals and earnings thereon are reflected as an adjustment to the liability for deferred compensation with an offset to compensation expense. There were $764,000, $717,000 and $589,000 in matching contributions under the ENQDCP for the years ended December 31, 2013, 2012 and 2011, respectively.


The deferred compensation liability is a non-current liability recorded at the value of the amount owed to the ENQDCP participants, with changes in the value of such amounts recognized as a compensation expense in the consolidated statement of operations. The calculation of the deferred compensation obligation is derived from observable market data by reference to hypothetical investments selected by the participants and is included in the line item captioned “Other liabilities” on the consolidated balance sheet. The Company invests in corporate owned life insurance (“COLI”) policies, of which the cash surrender value is included in the line item captioned “Other assets” on the consolidated balance sheet. As of December 31, 2013 and 2012, the Company had a cash surrender value asset of $25,025,000 and $19,017,000, respectively, and a deferred compensation liability of $23,940,000 and $18,617,000, respectively, which approximated fair value. The asset representing the cash surrender value of the corporate owned life insurance and the deferred compensation liability are both Level 2 fair value measurements.


Note 14 - Share-Based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
14. SHARE-BASED COMPENSATION

The Company recognizes the grant date fair value of each option and restricted share over its vesting period. Options and restricted shares granted under the Company’s Second Amended and Restated 2002 Equity Incentive Plan (“2002 Plan”) generally vest over a three or four year period and options have a term of ten years.


Impax Laboratories, Inc. 1999 Equity Incentive Plan


In October 2000, the Company’s stockholders approved an increase in the aggregate number of shares of common stock to be issued pursuant to the Company’s 1999 Equity Incentive Plan from 2,400,000 to 5,000,000 shares. Under the 1999 Equity Incentive Plan, 50,312, 115,785, and 379,872 stock options were outstanding at December 31, 2013, 2012 and 2011, respectively.


Impax Laboratories, Inc. Amended and Restated 2002 Equity Incentive Plan


Under the Company’s 2002 Plan, the aggregate number of shares of common stock for issuance pursuant to stock option grants and restricted stock awards was increased by the Company’s Board of Directors from 11,800,000 to 14,950,000 shares during 2013 and was approved by the Company’s stockholders. Under the 2002 Plan, stock options outstanding were 3,720,593, 4,061,436 and 4,693,225 at December 31, 2013, 2012 and 2011, respectively, and unvested restricted stock awards outstanding were 2,123,835, 1,954,570 and 1,663,911 at December 31, 2013, 2012 and 2011, respectively.


The stock option activity for all of the Company’s equity compensation plans noted above is summarized as follows:


Stock Options  

Number of Shares

Under Option

   

Weighted-

Average

Exercise

Price

per share

 

Outstanding at December 31, 2010

    6,514,676     $ 10.84  

Options granted

    424,000       24.78  

Options exercised

    (1,605,043 )     11.02  

Options forfeited

    (260,536 )     9.73  

Outstanding at December 31, 2011

    5,073,097       11.76  

Options granted

    278,500       20.90  

Options exercised

    (1,060,746 )     11.16  

Options forfeited

    (113,630 )     16.69  

Outstanding at December 31, 2012

    4,177,221       12.72  

Options granted

    506,000       18.06  

Options exercised

    (814,177 )     9.28  

Options forfeited

    (98,139 )     19.51  

Outstanding at December 31, 2013

    3,770,905       14.01  
                 

Options exercisable at December 31, 2013

    2,853,560     $ 12.04  

As of December 31, 2013, stock options outstanding and exercisable had average remaining contractual lives of 5.97 years and 4.62 years, respectively. Also, as of December 31, 2013, stock options outstanding and exercisable each had aggregate intrinsic values of $43,089,000 and $37,728,000, respectively and restricted stock awards outstanding had an aggregate intrinsic value of $8,523,000. As of December 31, 2013, the Company estimated 3,338,356 stock options and 1,880,216 restricted shares granted to employees which were vested or expected to vest.


The Company grants restricted stock to certain eligible employees as a component of its long-term incentive compensation program. The restricted stock award grants are made in accordance with the Company’s 2002 Plan. A summary of the non-vested restricted stock awards is as follows:


Restricted Stock Awards  

Non-Vested

Restricted

Awards

   

Weighted-

Average

Grant Date

Fair Value

 

Non-vested at December 31, 2010

    1,434,759     $ 12.93  

Granted

    868,549       20.73  

Vested

    (452,861 )     11.81  

Forfeited

    (186,536 )     13.71  

Non-vested at December 31, 2011

    1,663,911       17.20  

Granted

    1,015,937       23.41  

Vested

    (585,392 )     14.72  

Forfeited

    (139,886 )     19.08  

Non-vested at December 31, 2012

    1,954,570       20.97  

Granted

    1,032,924       19.92  

Vested

    (617,302 )     18.80  

Forfeited

    (246,357 )     20.69  

Non-vested at December 31, 2013

    2,123,835     $ 21.13  

Included in the 617,302 shares of restricted stock vested during the year ended December 31, 2013 are 233,275 shares with a weighted average fair value of $19.97 per share that were withheld for minimum withholding tax purposes upon vesting of such awards from stockholders who elected to net share settle such tax withholding obligation.


As of December 31, 2013, the Company had 3,511,851 shares available for issuance of either stock options or restricted stock awards, including 3,063,055 shares from the 2002 Plan, 296,921 shares from the 1999 Plan, and 151,875 shares from the ESPP Plan.


As of December 31, 2013, the Company had total unrecognized share-based compensation expense, net of estimated forfeitures, of $40,274,000 related to all of its share-based awards, which will be recognized over a weighted average period of 1.91 years. The intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $8,780,000, $12,380,000 and $19,192,000, respectively. The total fair value of restricted shares which vested during the years ended December 31, 2013, 2012 and 2011 was $11,604,000, $8,614,000 and $5,347,000, respectively.


The Company estimated the fair value of each stock option award on the grant date using the Black-Scholes option pricing model with the following assumptions:


   

For the Years Ended December 31,

 
   

2013

   

2012

   

2011

 

Volatility (range)

    41.7%        48.5% - 49.3%      50.7% - 52.7%  

Volatility (weighted average)

    41.7%         49.1%         52.3%    

Risk-free interest rate (range)

   1.1% - 1.9%      0.9% - 1.0%     1.5%  - 2.3%  

Risk-free interest rate (weighted average)

    1.2%         1.0%         2.1%    

Dividend yield

    0%         0%         0%    

Expected life (years)

    6.19         6.19         6.20    

Weighted average grant date fair value

    $7.54         $9.93         $12.85    

The Company estimated the fair value of each stock option award on the grant date using the Black-Scholes option pricing model, wherein expected volatility is based on historical volatility of the Company’s common stock. The expected term calculation is based on the “simplified” method described in SAB No. 107, Share-Based Payment and SAB No. 110, Share-Based Payment, as the result of the simplified method provides a reasonable estimate in comparison to actual experience. The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield of zero is based on the fact that the Company has never paid cash dividends on its common stock, and has no present intention to pay cash dividends. Options granted under each of the above plans generally vest from three to four years and have a term of ten years. With limited exceptions, the Company’s shares of common stock traded on the “Pink Sheets” beginning in August 2005 through May 2008. Subsequent to the Company’s May 2008 deregistration, and before its stock was re-listed in March 2009, the Company granted stock options and restricted stock awards. As there were no quoted market prices during the period when the Company’s shares of common stock was not publicly traded, the Company engaged a valuation firm to assist with its determination of the fair value of the shares of common stock at the stock option and restricted stock award grant dates. In this regard, the methods used to arrive at the fair value of the underlying stock price included a regression analysis, along with market multiples and discounted net cash flow analyses. The resulting fair value on each respective grant date was used to establish the stock option exercise price and the fair value of the restricted stock.


The amount of share-based compensation expense recognized by the Company is as follows:


   

For the Years Ended December 31,

 

(in $000’s)

 

2013

   

2012

   

2011

 

Cost of revenues

  $ 2,035     $ 2,405     $ 1,917  

Research and development

    4,885       4,658       4,119  

Selling, general and administrative

    10,724       9,240       6,649  

Total

  $ 17,644     $ 16,303     $ 12,685  

As discussed in “Note 1 - The Company,” in June 2013, the Company announced that Dr. Larry Hsu plans to retire as President and Chief Executive Officer of Impax. Pursuant to his Separation Agreement, all option grants and restricted stock grants expected to vest in the 12 month period following his retirement date will vest as of the retirement date. As a result, the Company recorded accelerated expense of $2.3 million during the three month period ended June 30, 2013 associated with Dr. Hsu’s outstanding options and restricted stock.


The after tax impact of recognizing the share-based compensation expense related to FASB ASC Topic 718 on basic earnings per common share was $0.19, $0.18 and $0.15 for the years ended December 31, 2013, 2012 and 2011, respectively, and diluted earnings per common share was $0.19, $0.17 and $0.14 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company recognized a deferred tax benefit of $4,829,000, $4,335,000 and $3,078,000 in 2013, 2012 and 2011, respectively; related to share-based compensation expense recorded for non-qualified employee stock options and restricted stock awards.


The Company’s policy is to issue new shares to satisfy stock option exercises and to grant restricted share awards. There were no modifications to any stock options during the years ended December 31, 2013, 2012 or 2011.


Note 15 - Stockholders' Equity
Stockholders' Equity Note Disclosure [Text Block]

15. STOCKHOLDERS’ EQUITY


Preferred Stock


Pursuant to its certificate of incorporation, the Company is authorized to issue 2,000,000 shares, $0.01 par value per share, “blank check” preferred stock, which enables the Board of Directors of the Company, from time to time, to create one or more new series of preferred stock. Each series of preferred stock issued can have the rights, preferences, privileges and restrictions designated by the Company’s Board of Directors. The issuance of any new series of preferred stock could affect, among other things, the dividend, voting, and liquidation rights of the Company’s common stock. During the years ended December 31, 2013, 2012 and 2011, the Company did not issue any preferred stock.


Common Stock


The Company’s Certificate of Incorporation, as amended, authorizes the Company to issue 90,000,000 shares of common stock with $0.01 par value.


Note 16 - Earnings Per Share
Earnings Per Share [Text Block]
16. EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net earnings by the weighted average common shares outstanding for the period. Diluted earnings per common share is computed by dividing net income by the weighted average common shares outstanding adjusted for the dilutive effect of stock options, restricted stock awards, stock purchase warrants and convertible debt, excluding anti-dilutive shares.


A reconciliation of basic and diluted earnings per share is as follows:


   

For the Years Ended December 31,

 
(in $000’s, except share and per share amounts)  

2013

   

2012

   

2011

 

Numerator:

                       

Net income

  $ 101,259     $ 55,873     $ 65,495  
                         

Denominator:

                       

Weighted average common shares outstanding

    66,921,181       65,660,271       64,126,855  

Effect of dilutive stock options and and restricted stock

    1,733,857       2,744,280       3,193,134  

Diluted weighted average common shares outstanding

    68,655,038       68,404,551       67,319,989  
                         

Basic net income per share

  $ 1.51     $ 0.85     $ 1.02  

Diluted net income per share

  $ 1.47     $ 0.82     $ 0.97  

For the years ended December 31, 2013, 2012 and 2011, the Company excluded 1,741,110, 905,899 and 1,244,493, respectively, of stock options from the computation of diluted net income per common share as the effect of these options would have been anti-dilutive.


Note 17 - Segment Information
Segment Reporting Disclosure [Text Block]

17. SEGMENT INFORMATION


The Company has two reportable segments, the Global Division and the Impax Division. The Global Division develops, manufactures, sells, and distributes generic pharmaceutical products, primarily through the following sales channels: the Global Products sales channel for sales of generic prescription products directly to wholesalers, large retail drug chains, and others; the Private Label Product sales channel for generic over-the-counter and prescription products sold to unrelated third-party customers who, in turn, sell the products under their own label; the Rx Partner sales channel for generic prescription products sold through unrelated third-party pharmaceutical entities under their own label pursuant to alliance agreements; and the OTC Partner sales channel for over-the-counter products sold through unrelated third-party pharmaceutical entities under their own labels pursuant to alliance and supply agreements. Revenues from the “Global Products” sales channel and the “Private Label” sales channel are reported under the caption “Global Product sales, net” in “Note 20 – Supplementary Financial Information.” The Company also generates revenue in its Global Division from research and development services provided under a joint development agreement with another unrelated third-party pharmaceutical company, and reports such revenue under the caption “Other Revenues” in “Note 20 – Supplementary Financial Information.” Revenues from the “OTC Partner” sales channel are also reported under the caption “Other Revenues” in “Note 20 – Supplementary Financial Information.” As of February 7, 2014, the Company marketed 117 generic pharmaceutical products representing dosage variations of 38 different pharmaceutical compounds through the Global Division, and eight other generic pharmaceutical products, representing dosage variations of three different pharmaceutical compounds, through the Company’s alliance and collaboration agreement partners. As of February 7, 2014, the Company’s marketed generic products include, but are not limited to authorized generic Adderall XR®, authorized generic Trilipix® delayed release capsules, fenofibrate (generic to Lofibra®) and oxymorphone hydrochloride extended release tablets (non-AB rated to OPANA® ER). On February 20, 2014, the Company announced that it currently plans to begin marketing and selling its allotment of a specified number of bottles of authorized generic RENVELA® tablets beginning in mid-April 2014. The Company continues to pursue the approval of its pending ANDA for generic RENVELA® with the FDA.


The Impax Division is engaged in the development of proprietary brand pharmaceutical products that the Company believes represent improvements to already-approved pharmaceutical products addressing CNS disorders. The Impax Division currently has one internally developed late stage branded pharmaceutical product candidate, RYTARYTM, an extended release capsule formulation of carbidopa-levodopa for the symptomatic treatment of Parkinson’s disease, for which the NDA was accepted for filing by the FDA in February 2012 and for which the Company received a Complete Response Letter from the FDA in January 2013. The Company is currently working with the FDA on the appropriate next steps for the RYTARYTM NDA. The Company has also initiated the preparation of required documents for a Market Authorization Application to the European Medicines Agency for RYTARYTM, currently targeted for filing during the second half of 2014. In addition to RYTARYTM, the Impax Division has a number of other product candidates that are in varying stages of development. The Impax Division is also engaged in the sale and distribution of branded Zomig® (zolmitriptan) products, indicated for the treatment of migraine headaches, under the terms of the AZ Agreement with AstraZeneca in the United States and in certain U.S. territories. Revenues from Impaxlabeled branded Zomig® products are reported under the caption “Impax Product sales, net” in “Note 20 – Supplementary Financial Information.” Finally, the Company generates revenue in the Impax Division from research and development services provided under a development and license agreement with another unrelated third-party pharmaceutical company, and reports such revenue under the caption “Other Revenues” in “Note 20 – Supplementary Financial Information.”


The Company’s chief operating decision maker evaluates the financial performance of the Company’s segments based upon segment income (loss) before income taxes. Items below income (loss) from operations are not reported by segment, except litigation settlements, since they are excluded from the measure of segment profitability reviewed by the Company’s chief operating decision maker. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment since it is not reviewed by the Company’s chief operating decision maker. The accounting policies for the Company’s segments are the same as those described above in "Note 2 - Summary of Significant Accounting Policies – Revenue Recognition.” The Company has no inter-segment revenue.


The tables below present segment information reconciled to total Company financial results, with segment operating income or loss including gross profit less direct research and development expenses, and direct selling expenses as well as any litigation settlements, to the extent specifically identified by segment:


(in $000’s)

 

Global

   

Impax

   

Corporate

   

Total

 

Year Ended December 31, 2013

 

Division

   

Division

   

and Other

   

Company

 

Revenues, net

  $ 398,340     $ 113,162     $ --     $ 511,502  

Cost of revenues

    253,836       58,366       --       312,202  

Research and development

    41,384       27,470       --       68,854  

Patent litigation

    16,545       --       --       16,545  

Selling, general and administrative

    17,684       44,915       57,689       120,288  

Income (loss) before income taxes

  $ 68,891     $ (17,589 )   $ 95,638     $ 146,940  

Year Ended December 31, 2012

 

Global

Division

   

Impax

Division

   

Corporate

and Other

   

Total

Company

 

Revenues, net

  $ 448,682     $ 133,010     $ --     $ 581,692  

Cost of revenues

    229,355       69,783       --       299,138  

Research and development

    48,604       32,716       --       81,320  

Patent litigation

    9,772       --       --       9,772  

Selling, general and administrative

    15,377       37,896       55,197       108,470  

Income (loss) before income taxes

  $ 145,574     $ (7,385 )   $ (54,878 )   $ 83,311  

Year Ended December 31, 2011

 

Global

Division

   

Impax

Division

   

Corporate

and Other

   

Total

Company

 

Revenues, net

  $ 491,710     $ 21,209     $ --     $ 512,919  

Cost of revenues

    242,713       11,911       --       254,624  

Research and development

    46,169       36,532       --       82,701  

Patent litigation

    7,506       --       --       7,506  

Selling, general and administrative

    11,313       7,435       49,729       68,477  

Income (loss) before income taxes

  $ 184,009     $ (34,669 )   $ (51,229 )   $ 98,111  

Foreign Operations


The Company’s wholly-owned subsidiary, Impax Laboratories (Taiwan) Inc., has constructed a facility in Taiwan which is utilized for manufacturing, research and development, warehouse, and administrative functions, with approximately $137,137,000, and $126,684,000 of net carrying value of assets, composed principally of a building and equipment, included in the Company's consolidated balance sheet at December 31, 2013 and 2012, respectively.


Note 18 - Commitments and Contingencies
Commitments and Contingencies Disclosure [Text Block]

18. COMMITMENTS AND CONTINGENCIES


Leases


The Company leases land, office, warehouse and laboratory facilities under non-cancelable operating leases expiring between March 2014 and December 2026. Rent expense for the years ended December 31, 2013, 2012 and 2011 was $1,932,000, $1,719,000 and $1,691,000, respectively. The Company recognizes rent expense on a straight-line basis over the lease period. The Company also leases certain equipment under various non-cancelable operating leases with various expiration dates between December 2014 and May 2016. Future minimum lease payments under the non-cancelable operating leases are as follows:


(in $000s)  

Years Ended

December 31,  

 

2014

  $ 2,253  

2015

    1,365  

2016

    741  

2017

    342  

2018

    310  

Thereafter

    2,362  

Total minimum lease payments

  $ 7,373  

Purchase Order Commitments


As of December 31, 2013, the Company had approximately $48,820,000 of open purchase order commitments, primarily for raw materials. The terms of these purchase order commitments are generally less than one year in duration.


Taiwan Facility


The Company has entered into several contracts related to ongoing expansion activities at its Taiwan manufacturing facility. As of December 31, 2013, the Company had remaining obligations under these contracts of approximately $9,750,000.


Note 20 - Supplementary Financial Information (unaudited)
Quarterly Financial Information [Text Block]

20. SUPPLEMENTARY FINANCIAL INFORMATION (unaudited)


Selected financial information for the quarterly periods noted is as follows:


   

2013 Quarters Ended:

 

(in $000’s except shares and per share amounts)

 

March 31

   

June 30

   

September 30

   

December 31

 
Revenue:                                

Global Product sales, gross

  $ 197,956     $ 217,721     $ 279,441     $ 288,315  

Less:

                               

Chargebacks

    64,345       82,013       98,449       111,903  

Rebates

    30,572       35,649       54,530       68,363  

Product Returns

    94       1,989       2,857       1,989  

Other credits

    5,160       8,312       11,919       21,639  

Global Product sales, net

    97,785       89,758       111,686       84,423  
                                 

Rx Partner

    3,114       3,668       3,016       1,841  

Other Revenues

    737       539       1,046       727  

Global Division revenues, net

    101,636       93,965       115,748       86,991  
                                 

Impax Product sales, gross

    69,292       48,300       22,849       21,244  

Less:

                               

Chargebacks

    7,790       10,095       8,422       6,690  

Rebates

    6,236       (1,735 )     (812 )     485  

Product Returns

    1,490       2,197       175       224  

Other credits

    7,255       2,409       (1,498 )     361  

Impax Product sales, net

    46,521       35,334       16,562       13,484  
                                 

Other Revenues

    332       332       331       266  

Impax Division revenues, net

    46,853       35,666       16,893       13,750  
                                 

Total revenues

    148,489       129,631       132,641       100,741  
                                 

Gross profit

    57,871       58,887       48,342       34,200  
                                 

Net income (loss)

  $ 105,442     $ 5,619     $ (180 )   $ (9,622 )
                                 

Net income (loss) per share (basic)

  $ 1.59     $ 0.08     $ (0.00 )   $ (0.14 )

Net income (loss) per share (diluted)

  $ 1.55     $ 0.08     $ (0.00 )   $ (0.14 )
                                 

Weighted average: common shares outstanding:

                               

Basic

    66,487,470       66,748,864       67,051,121       67,385,969  

Diluted

    68,178,355       68,287,948       67,051,121       67,385,969  

Quarterly computations of net income (loss) per share amounts are made independently for each quarterly reporting period, and the sum of the per share amounts for the quarterly reporting periods may not equal the per share amounts for the year-to-date reporting period.


Selected financial information for the quarterly periods noted is as follows:


   

2012 Quarters Ended:

 
(in $000’s except shares and per share amounts)  

March 31

   

June 30

   

September 30

   

December 31

 
Revenue:                                

Global Product sales, gross

  $ 185,671     $ 223,449     $ 178,628     $ 177,830  

Less:

                               

Chargebacks

    39,155       50,670       47,366       59,460  

Rebates

    20,589       26,847       24,285       22,995  

Product Returns

    (329 )     948       304       (1,730 )

Other credits

    10,045       18,552       7,212       17,334  

Global Product sales, net

    116,211       126,432       99,461       79,771  
                                 

Other Revenues

    7,054       6,633       967       12,153  

Global Division revenues, net

    123,265       133,065       100,428       91,924  
                                 

Impax Product sales, gross

    --       40,818       63,909       65,141  

Less:

                               

Chargebacks

    --       4,449       8,308       44  

Rebates

    --       3,714       5,113       7,556  

Product Returns

    --       878       1,374       1,558  

Other credits

    --       3,683       5,785       9,285  

Impax Product sales, net

    --       28,094       43,329       46,698  
                                 

Other Revenues

    5,303       5,301       1,830       2,455  

Impax Division revenues, net

    5,303       33,395       45,159       49,153  
                                 

Total revenues

    128,568       166,460       145,587       141,077  
                                 

Gross profit

    62,553       77,823       78,027       64,151  
                                 

Net income

  $ 12,365     $ 18,672     $ 20,037     $ 4,799  
                                 

Net income per share (basic)

  $ 0.19     $ 0.29     $ 0.30     $ 0.07  

Net income per share (diluted)

  $ 0.18     $ 0.27     $ 0.29     $ 0.07  
                                 

Weighted average: common shares outstanding:

                               

Basic

    65,122,240       65,482,700       65,797,722       66,217,421  

Diluted

    67,907,263       67,954,573       68,366,849       68,419,888  

Quarterly computations of net income per share amounts are made independently for each quarterly reporting period, and the sum of the per share amounts for the quarterly reporting periods may not equal the per share amounts for the year-to-date reporting period.


Schedule II - Valuation and Qualifying Accounts
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SCHEDULE II, VALUATION AND QUALIFYING ACCOUNTS


For the Year Ended December 31, 2011


(in $000’s)


Column A

 

Column B

   

Column C

   

Column D

   

Column E

 

Description

 

Balance at
Beginning of
Period

   

Charge to
Costs and
Expenses

   

Charge to
Other
Accounts

   

Deductions

   

Balance at
End of
Period

 
                               

Reserve for bad debts

  $ 539       163       ---       (90)     $ 612  

For the Year Ended December 31, 2012


(in $000’s)


Column A

 

Column B

   

Column C

   

Column D

   

Column E

 

Description

 

Balance at
Beginning of
Period

   

Charge to
Costs and
Expenses

   

Charge to
Other
Accounts

   

Deductions

   

Balance at
End of
Period

 
                               

Reserve for bad debts

  $ 612       ---       ---       (59)     $ 553  

For the Year Ended December 31, 2013


(in $000’s)


Column A

 

Column B

   

Column C

   

Column D

   

Column E

 

Description

 

Balance at
Beginning of
Period

   

Charge to
Costs and
Expenses

   

Charge to
Other
Accounts

   

Deductions

   

Balance at
End of
Period

 
                               

Reserve for bad debts

  $ 553       ---       ---       (14)     $ 539  

Accounting Policies, by Policy (Policies)

Use of Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the U.S. Securities & Exchange Commission (“SEC”) requires the use of estimates and assumptions, based on complex judgments considered reasonable, and affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant judgments are employed in estimates used in determining values of tangible and intangible assets, legal contingencies, tax assets and tax liabilities, fair value of share-based compensation related to equity incentive awards issued to employees and directors, and estimates used in applying the Company’s revenue recognition policy including those related to accrued chargebacks, rebates, product returns, Medicare, Medicaid, and other government rebate programs, shelf-stock adjustments, and the timing and amount of deferred and recognized revenue and deferred and amortized product manufacturing costs related to alliance and collaboration agreements. Actual results may differ from estimated results. Certain prior year amounts have been reclassified to conform to the presentation for the year ended December 31, 2013. The Company’s results for the year ended December 31, 2013 were positively impacted by a credit of approximately $600,000 (net-of-tax), or $0.01 per diluted share, related to certain partially offsetting prior period adjustments. The adjustments related to a non-GAAP depreciation policy and a best price adjustment for government rebates. The Company has determined that the impact of these adjustments is not material to the Company’s corresponding annual or quarterly financial statements.

Principles of Consolidation


The consolidated financial statements of the Company include the accounts of the operating parent company, Impax Laboratories, Inc., its wholly owned subsidiaries, including Impax Laboratories (Taiwan) Inc., and an equity investment in Prohealth Biotech, Inc. (“Prohealth”), in which the Company held a 57.54% majority ownership interest at December 31, 2013. All significant intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents


The Company considers all short-term investments with maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are stated at cost, which, for cash equivalents, approximates fair value due to their short-term maturity. The Company is potentially subject to financial instrument concentration of credit risk through its cash and cash equivalents. The Company maintains cash and cash equivalents with several major financial institutions. Such amounts frequently exceed Federal Deposit Insurance Corporation (“FDIC”) limits.

Short-Term Investments


Short-term investments represent investments in fixed rate financial instruments with maturities of greater than three months but less than 12 months at the time of purchase. The Company’s short-term investments are held in U.S. Treasury securities, corporate bonds, and high grade commercial paper, which are not insured by the FDIC. They are stated at amortized cost, which approximates fair value due to their short-term maturity, generally based upon observable market values of similar securities.

Fair Value of Financial Instruments


The Company’s deferred compensation liability is carried at the value of the amount owed to participants, and is derived from observable market data by reference to hypothetical investments. The carrying values of other financial assets and liabilities such as accounts receivable, accounts payable and accrued expenses approximate their fair values due to their short-term nature.

Contingencies


In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, covering a wide range of matters, including, among others, patent litigation, stockholder lawsuits, and product and clinical trial liability. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”) Topic 450, "Contingencies", the Company records accruals for such loss contingencies when it is probable a liability will been incurred and the amount of loss can be reasonably estimated. The Company, in accordance with FASB ASC Topic 450, does not recognize gain contingencies until realized. The Company records an accrual for legal costs in the period incurred. A discussion of contingencies is included in the “Commitments and Contingencies,” and “Legal and Regulatory Matters” footnotes below.

Allowance for Doubtful Accounts


The Company maintains allowances for doubtful accounts for estimated losses resulting from amounts deemed to be uncollectible from its customers; these allowances are for specific amounts on certain accounts based on facts and circumstances determined on a case-by-case basis.

Concentration of Credit Risk


Financial instruments that potentially subject the Company to concentrations of credit risk are cash, cash equivalents, short-term investments, and accounts receivable. The Company limits its credit risk associated with cash, cash equivalents and short-term investments by placing its investments with high quality money market funds, corporate debt, and short-term commercial paper and in securities backed by the U.S. Government. The Company limits its credit risk with respect to accounts receivable by performing credit evaluations when deemed necessary. The Company does not require collateral to secure amounts owed to it by its customers.


The following tables present the percentage of total accounts receivable and gross revenues represented by the Company’s five largest customers as of and for the years ended December 31, 2013, 2012 and 2011:


Percent of Total Accounts Receivable

 

2013

   

2012

   

2011

 
                         

Customer #1

    35.1%       31.9%       30.4%  

Customer #2

    28.8%       23.3%       12.9%  

Customer #3

    18.5%       18.4%       25.7%  

Customer #4

    --%       --%       8.6%  

Customer #5

    --%       3.7%       2.5%  

Customer #6

    --%       3.1%       --%  

Customer #7

    2.9%       --%       --%  

Customer #8

    1.0%       --%       --%  

Total Five largest customers

    86.3%       80.4%       80.1%  

Percent of Gross Revenues

 

2013

   

2012

   

2011

 

 

                       

Customer #1

    25.1%       25.2%       19.6%  

Customer #2

    30.6%       21.8%       15.9%  

Customer #3

    20.3%       15.1%       19.4%  

Customer #4

    --%       9.2%       12.4%  

Customer #5

    2.5%       --%       --%  

Customer #6

    2.4%       2.9%       2.4%  

Total Five largest customers

    80.9%       74.2%       69.7%  

During the years ended December 31, 2013, 2012 and 2011, the Company’s top ten generic products accounted for 68%, 70% and 76%, respectively, of Global Product sales, net.  In our Impax Division, revenue from sales of branded Zomig® products pursuant to our Distribution, License, Development and Supply Agreement with AstraZeneca accounted for 100% of our Impax Product sales, net. Refer to “Note 20 - Supplemental Financial Information” for more information.

Inventory


Inventory is stated at the lower of cost or market. Cost is determined using a standard cost method, and the cost flow assumption is first in, first out (“FIFO”) flow of goods. Standard costs are revised annually, and significant variances between actual costs and standard costs are apportioned to inventory and cost of goods sold based upon inventory turnover. Costs include materials, labor, quality control, and production overhead. Inventory is adjusted for short-dated, unmarketable inventory equal to the difference between the cost of inventory and the estimated value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Consistent with industry practice, the Company may build pre-launch inventories of certain products which are pending required approval from the FDA and/or resolution of patent infringement litigation, when, in the Company’s assessment, such action is appropriate to prepare for the anticipated commercial launch and FDA approval is expected in the near term and/or the related litigation will be resolved in the Company’s favor. The Company accounts for all costs of idle facilities, excess freight and handling costs, and wasted materials (spoilage) as a current period charge in accordance with GAAP.

Property, Plant and Equipment


Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred and costs of improvements and renewals are capitalized. Costs incurred in connection with the construction or major renovation of facilities, including interest directly related to such projects, are capitalized as construction in progress. Depreciation is recognized using the straight-line method based on the estimated useful lives of the related assets, which are generally 40 years for buildings, 10 to 15 years for building improvements, eight to 10 years for equipment, and four to 10 years for office furniture and equipment. Land and construction-in-progress are not depreciated.

Goodwill


In accordance with FASB ASC Topic 350, "Goodwill and Other Intangibles", rather than recording periodic amortization, goodwill is subject to an annual assessment for impairment by applying a fair value based test. Under FASB ASC Topic 350, if the fair value of the reporting unit exceeds the reporting unit’s carrying value, including goodwill, then goodwill is considered not impaired, making further analysis not required. The Company considers the Global Division and the Impax Division operating segments to each be a reporting unit. The Company attributes the entire carrying amount of goodwill to the Global Division.


The Company concluded the carrying value of goodwill was not impaired as of December 31, 2013 and 2012 as the fair value of the Global Division exceeded its carrying value at each date. The Company performs its annual goodwill impairment test in the fourth quarter of each year. The Company estimated the fair value of the Global Division using a discounted cash flow model for both the reporting unit and the enterprise. In addition, on a quarterly basis, the Company performs a review of its business operations to determine whether events or changes in circumstances have occurred which could have a material adverse effect on the estimated fair value of the reporting unit, and thus indicate a potential impairment of the goodwill carrying value. If such events or changes in circumstances were deemed to have occurred, the Company would perform an interim impairment analysis, which may include the preparation of a discounted cash flow model, or consultation with one or more valuation specialists, to determine the impact, if any, on the Company’s assessment of the reporting unit’s fair value. The Company has not to date deemed there to have been any significant adverse changes in the legal, regulatory, or general economic environment in which the Company conducts its business operations.

Revenue Recognition


The Company recognizes revenue when the earnings process is complete, which under SEC Staff Accounting Bulletin No. 104, Topic No. 13, “Revenue Recognition” (“SAB 104”), is when revenue is realized or realizable and earned, there is persuasive evidence a revenue arrangement exists, delivery of goods or services has occurred, the sales price is fixed or determinable, and collectability is reasonably assured.


The Company accounts for material revenue arrangements which contain multiple deliverables in accordance with FASB ASC Topic 605-25, revenue recognition for arrangements with multiple elements, which addresses the determination of whether an arrangement involving multiple deliverables contains more than one unit of accounting. A delivered item within an arrangement is considered a separate unit of accounting only if both of the following criteria are met:


  ●  the delivered item has value to the customer on a stand-alone basis; and
 

if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor.


Under FASB ASC Topic 605-25, if both of the criteria above are not met, then separate accounting for the individual deliverables is not appropriate. Revenue recognition for arrangements with multiple deliverables constituting a single unit of accounting is recognized generally over the greater of the term of the arrangement or the expected period of performance, either on a straight-line basis or on a modified proportional performance method.


The Company accounts for milestones related to research and development activities in accordance with FASB ASC Topic 605-28, milestone method of revenue recognition. FASB ASC Topic 605-28 allows for the recognition of consideration, which is contingent on the achievement of a substantive milestone, in its entirety in the period the milestone is achieved. A milestone is considered to be substantive if all of the following criteria are met: the milestone is commensurate with either: (1) the performance required to achieve the milestone, or (2) the enhancement of the value of the delivered items resulting from the performance required to achieve the milestone; the milestone relates solely to past performance; and, the milestone payment is reasonable relative to all of the deliverables and payment terms within the agreement.


Global Product sales, net, and Impax Product sales, net:


The Global Product sales, net and Impax Product sales, net include revenue recognized related to shipments of generic and branded pharmaceutical products to the Company’s customers, primarily drug wholesalers and retail chains. Gross sales revenue is recognized at the time title and risk of loss passes to the customer, which is generally when product is received by the customer. Global and Impax Product revenue, net may include deductions from the gross sales price related to estimates for chargebacks, rebates, distribution service fees, returns, shelf-stock, and other pricing adjustments. The Company records an estimate for these deductions in the same period when revenue is recognized. A summary of each of these deductions is as follows:


Chargebacks


The Company has agreements establishing contract prices for certain products with certain indirect customers, such as managed care organizations, hospitals and government agencies who purchase products from drug wholesalers. The contract prices are lower than the prices the customer would otherwise pay to the wholesaler, and the price difference is referred to as a chargeback, which generally takes the form of a credit memo issued by the Company to reduce the invoiced gross selling price charged to the wholesaler. An estimated accrued provision for chargeback deductions is recognized at the time of product shipment. The primary factors considered when estimating the provision for chargebacks are the average historical chargeback credits given, the mix of products shipped, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business. The Company also monitors actual chargebacks granted and compares them to the estimated provision for chargebacks to assess the reasonableness of the chargeback reserve at each quarterly balance sheet date.


Rebates


The Company maintains various rebate programs with its customers in an effort to maintain a competitive position in the marketplace and to promote sales and customer loyalty. The rebates generally take the form of a credit memo to reduce the invoiced gross selling price charged to a customer for products shipped. An estimated accrued provision for rebate deductions is recognized at the time of product shipment. The primary factors the Company considers when estimating the provision for rebates are the average historical experience of aggregate credits issued, the mix of products shipped and the historical relationship of rebates as a percentage of total gross product sales, the contract terms and conditions of the various rebate programs in effect at the time of shipment, and the amount of inventory on hand at the major drug wholesalers with whom the Company does business. The Company also monitors actual rebates granted and compares them to the estimated provision for rebates to assess the reasonableness of the rebate reserve at each quarterly balance sheet date.


Distribution Service Fees


The Company pays distribution service fees to several of its wholesaler customers related to sales of its Impax Products. The wholesalers are generally obligated to provide the Company with periodic outbound sales information as well as inventory levels of the Company’s Impax Products held in their warehouses. Additionally, the wholesalers have agreed to manage the variability of their purchases and inventory levels within specified days on hand limits. An accrued provision for distribution service fees is recognized at the time products are shipped to wholesalers.


Returns


The Company allows its customers to return product if approved by authorized personnel in writing or by telephone with the lot number and expiration date accompanying any request and if such products are returned within six months prior to or until twelve months following, the products’ expiration date. The Company estimates and recognizes an accrued provision for product returns as a percentage of gross sales based upon historical experience. The product return reserve is estimated using a historical lag period, which is the time between when the product is sold and when it is ultimately returned, and estimated return rates which may be adjusted based on various assumptions including changes to internal policies and procedures, changes in business practices, and commercial terms with customers, competitive position of each product, amount of inventory in the wholesaler supply chain, the introduction of new products, and changes in market sales information. The Company also considers other factors, including significant market changes which may impact future expected returns, and actual product returns. The Company monitors actual returns on a quarterly basis and may record specific provisions for returns it believes are not covered by historical percentages.


Shelf-Stock Adjustments


Based upon competitive market conditions, the Company may reduce the selling price of certain Global Division products. The Company may issue a credit against the sales amount to a customer based upon their remaining inventory of the product in question, provided the customer agrees to continue to make future purchases of product from the Company. This type of customer credit is referred to as a shelf-stock adjustment, which is the difference between the sales price and the revised lower sales price, multiplied by an estimate of the number of product units on hand at a given date. Decreases in selling prices are discretionary decisions made by the Company in response to market conditions, including estimated launch dates of competing products and declines in market price. The Company records an estimate for shelf-stock adjustments in the period it agrees to grant such a credit memo to a customer.


Medicaid and Other Government Pricing Programs


As required by law, the Company provides a rebate on drugs dispensed under the Medicaid program, Medicare Part D, TRICARE, and other U.S. government pricing programs. The Company determines its estimated government rebate accrual primarily based on historical experience of claims submitted by the various states and other jurisdictions and any new information regarding changes in the various programs which may impact the Company’s estimate of government rebates. In determining the appropriate accrual amount, the Company considers historical payment rates and processing lag for outstanding claims and payments. The Company records estimates for government rebates as a deduction from gross sales, with a corresponding adjustment to accrued liabilities.


Cash Discounts


The Company offers cash discounts to its customers, generally 2% of the gross selling price, as an incentive for paying within invoice terms, which generally range from 30 to 90 days. An estimate of cash discounts is recorded in the same period when revenue is recognized.


Rx Partner and OTC Partner:


The Rx Partner and OTC Partner contracts include revenue recognized under alliance and collaboration agreements between the Company and unrelated third-party pharmaceutical companies. The Company has entered into these alliance agreements to develop marketing and/or distribution relationships with its partners to fully leverage its technology platform.


The Rx Partners and OTC Partners alliance agreements obligate the Company to deliver multiple goods and/or services over extended periods. Such deliverables include manufactured pharmaceutical products, exclusive and semi-exclusive marketing rights, distribution licenses, and research and development services. In exchange for these deliverables the Company receives payments from its agreement partners for product shipments and research and development services, and may also receive other payments including royalty, profit sharing, upfront, and periodic milestone payments. Revenue received from the alliance agreement partners for product shipments under these agreements is not subject to deductions for chargebacks, rebates, product returns, and other pricing adjustments. Royalty and profit sharing amounts the Company receives under these agreements are calculated by the respective agreement partner, with such royalty and profit share amounts generally based upon estimates of net product sales or gross profit which include estimates of deductions for chargebacks, rebates, product returns, and other adjustments the alliance agreement partners may negotiate with their respective customers. The Company records the agreement partner's adjustments to such estimated amounts in the period the agreement partner reports the amounts to the Company.


The Company applies the updated guidance of ASC 605-25 “Multiple Element Arrangements” to the Strategic Alliance Agreement with Teva Pharmaceuticals Curacao N.V., a subsidiary of Teva Pharmaceutical Industries Limited (“Teva Agreement”). The Company looks to the underlying delivery of goods and/or services which give rise to the payment of consideration under the Teva Agreement to determine the appropriate revenue recognition. The Company initially defers consideration received as a result of research and development-related activities performed under the Teva Agreement. The Company recognizes deferred revenue on a straight-line basis over the expected period of performance for such services. Consideration received as a result of the manufacture and delivery of products under the Teva Agreement is recognized at the time title and risk of loss passes to the customer which is generally when product is received by Teva. The Company recognizes profit share revenue in the period earned.


OTC Partner revenue is related to agreements with Pfizer, Inc., formerly Wyeth LLC (“Pfizer”) and L. Perrigo Company (“Perrigo”) with respect to the supply of over-the-counter pharmaceutical products. The OTC Partner sales channel is no longer a core area of the business, and the over-the-counter pharmaceutical products the Company sells through this sales channel are older products which are only sold to Pfizer and Perrigo, and which are currently sold at a loss, on a fully absorbed basis. The Company is currently only required to manufacture the over-the-counter pharmaceutical products under its agreements with Pfizer and Perrigo. In order to avoid deferring the losses incurred upon shipment of these products to Pfizer and Perrigo, the Company recognizes revenue, and the associated manufacturing costs, at the time title and risk of loss passes to Pfizer or Perrigo, as applicable, which is generally when the product is shipped. The Company recognizes profit share revenue in the period earned.


Research Partner:


The Research Partner contract includes revenue recognized under development agreements with unrelated third-party pharmaceutical companies. The development agreements generally obligate the Company to provide research and development services over multiple periods. In exchange for this service, the Company received upfront payments upon signing of each development agreement and is eligible to receive contingent milestone payments, based upon the achievement of contractually specified events. Additionally, the Company may also receive royalty payments from the sale, if any, of a successfully developed and commercialized product under one of these development agreements. The Company recognizes revenue received from the provision of research and development services, including the upfront payment and the milestone payments received before January 1, 2011 on a straight line basis over the expected period of performance of the research and development services. Revenue received from the achievement of contingent research and development milestones after January 1, 2011 will be recognized currently in the period such payment is earned. Royalty fee income, if any, will be recognized as current period revenue when earned.


Promotional Partner:


The Promotional Partner contract includes revenue recognized under a promotional services agreement with an unrelated third-party pharmaceutical company. The promotional services agreement obligated the Company to provide physician detailing sales calls services to promote certain of the unrelated third-party company’s branded drug products. The Company received service fee revenue in exchange for providing this service. The Company recognized revenue from providing physician detailing sales calls services as the services were provided. The Company’s obligation to provide physician detailing sales calls under the promotional services agreement ended on June 30, 2012.

Shipping and Handling Fees and Costs


Shipping and handling fees related to sales transactions are recorded as selling expense. Shipping costs were $1,890,000, $1,425,000 and $1,341,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

Research and Development


Research and development activities are expensed as incurred and consist of self-funded research and development costs and costs associated with work performed by other participants under collaborative research and development agreements

Derivatives 


The Company does not engage in hedging transactions for trading or speculative purposes or to hedge exposure to currency or interest rate fluctuations. From time to time, the Company may engage in transactions that result in embedded derivatives (e.g. convertible debt securities). In accordance with FASB ASC Topic 815, derivatives and hedging, the Company records the embedded derivative at fair value on the balance sheet and records any related gains or losses in current earnings in the statement of operations.

Share-Based Compensation


The Company accounts for stock-based employee compensation arrangements in accordance with provisions of FASB ASC Topic 718, stock compensation. Under FASB ASC Topic 718, the Company recognizes the grant date fair value of stock-based employee compensation as expense on a straight-line basis over the vesting period of the grant. The Company uses the Black Scholes option pricing model to determine the grant date fair value of employee stock options; the fair value of restricted stock awards is equal to the closing price of the Company’s stock on the date such award was granted.

Income Taxes


The Company provides for income taxes using the asset and liability method as required by FASB ASC Topic 740, income taxes. This approach recognizes the amount of federal, state, local taxes, and foreign taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates in the period during which they are signed into law. Under FASB ASC Topic 740, a valuation allowance is required when it is more likely than not all or some portion of the deferred tax assets will not be realized through generating sufficient future taxable income.


FASB ASC Topic 740, Sub-topic 10, tax positions, defines the criterion an individual tax position must meet for any part of the benefit of the tax position to be recognized in financial statements prepared in conformity with generally accepted accounting principles. Under FASB ASC Topic 740, Sub-topic 10, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based solely on the technical merits of the tax position. The tax benefits recognized in the financial statements from such a tax position should be measured based on the largest benefit having a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Additionally, FASB ASC Topic 740, Sub-topic 10 provides guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. In accordance with the disclosure requirements of FASB ASC Topic 740, Sub-topic 10, the Company’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of total interest expense and other expense, respectively.

Earnings per Share


Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares adjusted for the dilutive effect of common stock equivalents outstanding during the period.

Other Comprehensive Income


The Company follows the provisions of FASB ASC Topic 220, comprehensive income, which establishes standards for the reporting and display of comprehensive income and its components. Comprehensive income is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company recorded foreign currency translation gains and losses, which are reported as comprehensive income. Foreign currency translation gains (losses) for the years ended December 31, 2013, 2012 and 2011 were $(4,104,000), $3,520,000 and $(1,087,000), respectively.

Deferred Financing Costs


The Company capitalizes direct costs incurred with obtaining debt financing, which are included in other assets on the consolidated balance sheet. Deferred financing costs, including costs incurred in obtaining debt financing, are amortized to interest expense over the term of the underlying debt on a straight-line basis, which approximates the effective interest method. The Company recognized amortization of $30,000, $30,000 and $28,000 in the years ended December 31, 2013, 2012 and 2011, respectively.

Foreign Currency Translation


The Company translates the assets and liabilities of the Taiwan dollar functional currency of its majority-owned affiliate Prohealth Biotech, Inc. and its wholly-owned subsidiary Impax Laboratories (Taiwan), Inc. into the U.S. dollar reporting currency using exchange rates in effect at the end of each reporting period. The revenue and expense of these entities are translated using an average of the rates in effect during the reporting period. Gains and losses from these translations are recorded as currency translation adjustments included in the consolidated statements of comprehensive income and the consolidated statements of changes in stockholders’ equity.

Note 2 - Summary of Significant Accounting Policies (Tables)
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Percent of Total Accounts Receivable

 

2013

   

2012

   

2011

 
                         

Customer #1

    35.1%       31.9%       30.4%  

Customer #2

    28.8%       23.3%       12.9%  

Customer #3

    18.5%       18.4%       25.7%  

Customer #4

    --%       --%       8.6%  

Customer #5

    --%       3.7%       2.5%  

Customer #6

    --%       3.1%       --%  

Customer #7

    2.9%       --%       --%  

Customer #8

    1.0%       --%       --%  

Total Five largest customers

    86.3%       80.4%       80.1%  

Percent of Gross Revenues

 

2013

   

2012

   

2011

 

 

                       

Customer #1

    25.1%       25.2%       19.6%  

Customer #2

    30.6%       21.8%       15.9%  

Customer #3

    20.3%       15.1%       19.4%  

Customer #4

    --%       9.2%       12.4%  

Customer #5

    2.5%       --%       --%  

Customer #6

    2.4%       2.9%       2.4%  

Total Five largest customers

    80.9%       74.2%       69.7%  
Note 4 - Investments (Tables)
Held-to-maturity Securities [Table Text Block]

(in $000’s)

 

Amortized

   

Gross

Unrecognized

    Gross

Unrecognized

   

Fair

 

December 31, 2013

 

Cost

   

Gains

   

Losses

   

Value

 

Commercial paper

  $ 91,480     $ 26     $ --     $ 91,506  

Corporate bonds

    137,041       13       (21 )     137,033  

Total short-term investments

  $ 228,521     $ 39     $ (21 )   $ 228,539  

(in $000’s)

  Amortized    

Gross

Unrecognized

    GrossUnrecognized     Fair  

December 31, 2012

 

Cost

   

Gains

   

Losses

   

Value

 

Commercial paper

  $ 70,140     $ 28     $ --     $ 70,168  

Government sponsored enterprise obligations

    9,994       4       --       9,998  

Corporate bonds

    76,622       23       (12 )     76,633  

Total short-term investments

  $ 156,756     $ 55     $ (12 )   $ 156,799  
Note 5 - Accounts Receivable (Tables)

(in $000’s)

 

December 31,

2013

   

December 31,

2012

 

Gross accounts receivable

  $ 246,319     $ 167,696  

Less: Rebate reserve

    (88,449 )     (46,011 )

Less: Chargeback reserve

    (37,066 )     (18,410 )

Less: Other deductions

    (7,811 )     (11,026 )

Accounts receivable, net

  $ 112,993     $ 92,249  

(in $000’s)

 

December 31,

   

December 31,

   

December 31,

 

Rebate reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 46,011     $ 29,164     $ 23,547  

Provision recorded during the period

    193,288       111,099       79,697  

Credits issued during the period

    (150,850 )     (94,252 )     (74,080 )

Ending balance

  $ 88,449     $ 46,011     $ 29,164  

(in $000’s)

 

December 31,

   

December 31,

   

December 31,

 

Chargeback reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 18,410     $ 22,161     $ 14,918  

Provision recorded during the period

    389,707       209,452       166,504  

Credits issued during the period

    (371,051 )     (213,203 )     (159,261 )

Ending balance

  $ 37,066     $ 18,410     $ 22,161  
Note 6 - Inventory (Tables)
Schedule of Inventory, Current [Table Text Block]

(in $000’s)

 

December 31,

2013

   

December 31,

2

 

Raw materials

  $ 27,981     $ 31,884  

Work in process

    1,434       4,005  

Finished goods

    47,416       60,956  

Total inventory

    76,831       96,845  
                 

Less: Non-current inventory

    6,725       7,081  

Total inventory-current

  $ 70,107     $ 89,764  
Note 7 - Property, Plant and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]

(in $000’s)

 

December 31,
2013

   

December 31,

2012

 

Land

  $ 5,773     $ 5,773  

Buildings and improvements

    139,657       130,995  

Equipment

    114,950       110,353  

Office furniture and equipment

    11,523       10,558  

Construction-in-progress

    15,910       9,843  

Property, plant and equipment, gross

  $ 287,813     $ 267,522  
                 

Less: Accumulated depreciation

    (99,622 )     (86,764 )

Property, plant and equipment, net

  $ 188,191     $ 180,758  
Note 8 - Goodwill and Intangible Assets (Tables)

(in $000’s)

 

Initial

   

Accumulated

         

Carrying

 

December 31, 2013

 

Cost

 
   

Amortization

 
   

Impairment

   

Value

 
 

Amortized intangible assets:

                               

Zomig® product rights

  $ 41,783     $ (28,641 )   $ ---     $ 13,142  

Tolmar product rights

    31,450       (3,266 )     (13,156 )     15,028  

Other product rights

    2,250       ---       (750 )     1,500  

Total intangible assets

  $ 75,483     $ (31,907 )   $ (13,906 )   $ 29,670  

(in $000’s)

 

Initial

   

Accumulated

         

Carrying

 

December 31, 2012

 

Cost

   

Amortization

   

Impairment

   

Value

 

Amortized intangible assets:

                               

Zomig® product rights

  $ 45,096     $ (17,987 )   $ ---     $ 27,109  

Tolmar product rights

    19,450       (859 )     ---       18,591  

Other product rights

    2,250       ---       ---       2,250  

Total intangible assets

  $ 66,796     $ (18,846 )   $ ---     $ 47,950  

(in $000’s)

 

Amortization

Expense

 

2014

  $ 9,721  

2015

    5,295  

2016

    4,104  

2017

    3,912  

2018

    2,273  

Thereafter

    2,865  

Total

  $ 28,170  
Note 9 - Accrued Expenses (Tables)

(in $000’s)

 

December 31,
2013

   

December 31,
2012

 

Payroll-related expenses

  $ 27,985     $ 22,553  

Product returns

    28,089       23,440  

Government rebates

    23,351       33,794  

Legal and professional fees

    3,162       3,993  

Clinical trial costs

    (277 )     1,610  

Income taxes payable

    21,186       1,541  

Physician detailing sales force fees

    1,512       1,471  

Other

    6,515       4,340  

Total accrued expenses

  $ 111,523     $ 92,742  
(in $000's)   December 31,     December 31,     December 31,  

Returns Reserve

 

2013

   

2012

   

2011

 
                         

Beginning balance

  $ 23,440     $ 24,101     $ 33,755  

Provision related to sales recorded in the period

    11,015       3,003       688  

Credits issued during the period

    (6,366 )     (3,664 )     (10,342 )

Ending balance

  $ 28,089     $ 23,440     $ 24,101  
Note 10 - Income Taxes (Tables)

 

 

For the Years Ended December 31,

 

(in $000’s)

 

2013

   

2012

   

2011

 
Current:                        

Federal taxes

  $ 67,407     $ 49,636     $ 23,500  

State taxes

    2,569       1,721       1,034  

Foreign taxes

    742       453       1,154  

Total current tax expense

    70,718       51,810       25,688  
                         

Deferred:

                       

Federal taxes

  $ (21,050 )   $ (21,650 )   $ 5,646  

State taxes

    (1,965 )     (2,537 )     592  

Foreign taxes

    (2,022 )     (185 )     690  

Total deferred tax (benefit) expense

    (25,037 )     (24,372 )     6,928  
                         

Provision for income taxes

  $ 45,681     $ 27,438     $ 32,616  
   

For the Years Ended December 31,

 
(in $000’s)  

2013

   

2012

   

2011

 

Income before income taxes

  $ 146,940             $ 83,311             $ 98,111          

Tax provision at the federal statutory rate

    51,429       35.0 %     29,159       35.0 %     34,339       35.0 %
                                                 

Increase (decrease) in tax rate resulting from:

                                               

Tax rate differential and permanent items on foreign income

    383       0.3 %     (1,259 )     (1.5 )%     185       0.2 %

State income taxes, net of federal benefit

    1,616       1.1 %     1,906       2.3 %     3,673       3.7 %

State research and development credits

    (1,787 )     (1.2 )%     (1,560 )     (1.9 )%     (1,560 )     (1.6 )%

Federal research and development credits

    (1,900 )     (1.3 )%     ---       -- %     (2,100 )     (2.2 )%

Share-based compensation

    92       0.1 %     326       0.4 %     92       0.1 %

Executive compensation

    336       0.2 %     825       1.0 %     586       0.6 %

Domestic manufacturing deduction

    (1,666 )     (1.1 )%     (2,010 )     (2.4 )%     (2,187 )     (2.2 )%

Other permanent book/tax differences

    (967 )     (0.7 )%     (185 )     (0.2 )%     (119 )     (0.1 )%

Provision for uncertain tax positions

    1,718       1.1 %     801       0.9 %     178       0.2 %

Revision of prior years’ estimates

    (1,150 )     (0.8 )%     (392 )     (0.5 )%     (309 )     (0.3 )%

Prior year Federal research and development credits

    (1,950 )     (1.3 )%     ---       --     ---       -- %

Other, net

    (473 )     (0.3 )%     (173 )     (0.2 )%     (162 )     (0.2 )%

Provision for income taxes

  $ 45,681       31.1 %   $ 27,438       32.9 %   $ 32,616       33.2 %
   

December 31,

 

(in $000’s)

 

2013

   

2012

 

Deferred tax assets:

               

Deferred revenues

  $ 2,961     $ 4,545  

Accrued expenses

    44,404       38,839  

Inventory reserves

    6,681       2,630  

Net operating loss carryforwards

    61       149  

Depreciation and amortization

    275       428  

Acquired product rights and intangibles

    15,147       7,284  

Capitalized legal fees

    11,245       6,981  

R&D credit carryforwards

    3,238       2,062  

Share based compensation expense

    4,786       3,446  

Other

    745       850  

Deferred tax assets

  $ 89,543     $ 67,214  
                 

Deferred tax liabilities:

               

Tax depreciation and amortization in excess of book amounts

  $ 2,592     $ 3,544  

Deferred manufacturing costs

    65       80  

Other

    2,172       1,810  

Deferred tax liabilities

  $ 4,829     $ 5,434  
                 

Deferred tax assets, net

  $ 84,714     $ 61,780  
   

December 31,

 

(in $000’s)

 

2013

   

2012

 

Current deferred tax assets

  $ 52,959     $ 44,196  

Current deferred tax liabilities

    (2,171 )     (1,810 )

Current deferred tax assets, net

    50,788       42,386  
                 

Non-current deferred tax assets

    36,583       23,018  

Non-current deferred tax liabilities

    (2,657 )     (3,624 )

Non-current deferred tax assets, net

    33,926       19,394  
                 

Deferred tax assets, net

  $ 84,714     $ 61,780  

(in $000’s)

 

For the Years Ended December 31,

 
   

2013

   

2012

   

2011

 

Unrecognized tax benefits beginning of year

  $ 2,920     $ 1,791     $ 1,579  

Gross change for current year positions

    797       249       188  

Gross change for prior period positions

    1,575       1,231       24  

Decrease due to settlements and payments

    --       (351 )     --  

Decrease due to statute expirations

    --       --       --  

Unrecognized tax benefits end of year

  $ 5,292     $ 2,920     $ 1,791  
Note 12 - Alliance and Collaboration Agreements (Tables)
   

For the Years Ended December 31,

 

(in $000’s)

                       

Deferred revenue

 

2013

   

2012

   

2011

 

Beginning balance

  $ 2,396     $ 3,705     $ 4,410  
                         

Additions

    ---       ---       551  
                         

Less amounts recognized

    (1,309 )     (1,309 )     (1,256 )
                         

Ending deferred revenue

  $ 1,087     $ 2,396     $ 3,705  

(in $000s)

Deferred Revenue

Recognition

 

2014

$ 1,087  

2015

  ---  

2016

  ---  

2017

  ---  

2018

  ---  

Thereafter

  ---  
Total $ 1,087  
(in $000’s) For the Years Ended December 31,    
Deferred revenue 2013   2012   2011  

Beginning balance

$ 3,650   $ 12,410   $ 25,948  

Less amount recognized

  (1,825 )   (8,760 )   (13,538 )

Ending deferred revenue

$ 1,825   $ 3,650   $ 12,410  
(in $000’s)    

Deferred

Revenue

Recognition

 

2014

  $ 1,825  

2015

    ---  

2016

    ---  

2017

    ---  

2018

    ---  

Thereafter

    ---  
Total   $ 1,825  
Note 14 - Share-Based Compensation (Tables)
Stock Options  

Number of Shares

Under Option

   

Weighted-

Average

Exercise

Price

per share

 

Outstanding at December 31, 2010

    6,514,676     $ 10.84  

Options granted

    424,000       24.78  

Options exercised

    (1,605,043 )     11.02  

Options forfeited

    (260,536 )     9.73  

Outstanding at December 31, 2011

    5,073,097       11.76  

Options granted

    278,500       20.90  

Options exercised

    (1,060,746 )     11.16  

Options forfeited

    (113,630 )     16.69  

Outstanding at December 31, 2012

    4,177,221       12.72  

Options granted

    506,000       18.06  

Options exercised

    (814,177 )     9.28  

Options forfeited

    (98,139 )     19.51  

Outstanding at December 31, 2013

    3,770,905       14.01  
                 

Options exercisable at December 31, 2013

    2,853,560     $ 12.04  
Restricted Stock Awards  

Non-Vested

Restricted

Awards

   

Weighted-

Average

Grant Date

Fair Value

 

Non-vested at December 31, 2010

    1,434,759     $ 12.93  

Granted

    868,549       20.73  

Vested

    (452,861 )     11.81  

Forfeited

    (186,536 )     13.71  

Non-vested at December 31, 2011

    1,663,911       17.20  

Granted

    1,015,937       23.41  

Vested

    (585,392 )     14.72  

Forfeited

    (139,886 )     19.08  

Non-vested at December 31, 2012

    1,954,570       20.97  

Granted

    1,032,924       19.92  

Vested

    (617,302 )     18.80  

Forfeited

    (246,357 )     20.69  

Non-vested at December 31, 2013

    2,123,835     $ 21.13  
   

For the Years Ended December 31,

 
   

2013

   

2012

   

2011

 

Volatility (range)

    41.7%        48.5% - 49.3%      50.7% - 52.7%  

Volatility (weighted average)

    41.7%         49.1%         52.3%    

Risk-free interest rate (range)

   1.1% - 1.9%      0.9% - 1.0%     1.5%  - 2.3%  

Risk-free interest rate (weighted average)

    1.2%         1.0%         2.1%    

Dividend yield

    0%         0%         0%    

Expected life (years)

    6.19         6.19         6.20    

Weighted average grant date fair value

    $7.54         $9.93         $12.85    
   

For the Years Ended December 31,

 

(in $000’s)

 

2013

   

2012

   

2011

 

Cost of revenues

  $ 2,035     $ 2,405     $ 1,917  

Research and development

    4,885       4,658       4,119  

Selling, general and administrative

    10,724       9,240       6,649  

Total

  $ 17,644     $ 16,303     $ 12,685  
Note 16 - Earnings Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   

For the Years Ended December 31,

 
(in $000’s, except share and per share amounts)  

2013

   

2012

   

2011

 

Numerator:

                       

Net income

  $ 101,259     $ 55,873     $ 65,495  
                         

Denominator:

                       

Weighted average common shares outstanding

    66,921,181       65,660,271       64,126,855  

Effect of dilutive stock options and and restricted stock

    1,733,857       2,744,280       3,193,134  

Diluted weighted average common shares outstanding

    68,655,038       68,404,551       67,319,989  
                         

Basic net income per share

  $ 1.51     $ 0.85     $ 1.02  

Diluted net income per share

  $ 1.47     $ 0.82     $ 0.97  
Note 17 - Segment Information (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]

(in $000’s)

 

Global

   

Impax

   

Corporate

   

Total

 

Year Ended December 31, 2013

 

Division

   

Division

   

and Other

   

Company

 

Revenues, net

  $ 398,340     $ 113,162     $ --     $ 511,502  

Cost of revenues

    253,836       58,366       --       312,202  

Research and development

    41,384       27,470       --       68,854  

Patent litigation

    16,545       --       --       16,545  

Selling, general and administrative

    17,684       44,915       57,689       120,288  

Income (loss) before income taxes

  $ 68,891     $ (17,589 )   $ 95,638     $ 146,940  

Year Ended December 31, 2012

 

Global

Division

   

Impax

Division

   

Corporate

and Other

   

Total

Company

 

Revenues, net

  $ 448,682     $ 133,010     $ --     $ 581,692  

Cost of revenues

    229,355       69,783       --       299,138  

Research and development

    48,604       32,716       --       81,320  

Patent litigation

    9,772       --       --       9,772  

Selling, general and administrative

    15,377       37,896       55,197       108,470  

Income (loss) before income taxes

  $ 145,574     $ (7,385 )   $ (54,878 )   $ 83,311  

Year Ended December 31, 2011

 

Global

Division

   

Impax

Division

   

Corporate

and Other

   

Total

Company

 

Revenues, net

  $ 491,710     $ 21,209     $ --     $ 512,919  

Cost of revenues

    242,713       11,911       --       254,624  

Research and development

    46,169       36,532       --       82,701  

Patent litigation

    7,506       --       --       7,506  

Selling, general and administrative

    11,313       7,435       49,729       68,477  

Income (loss) before income taxes

  $ 184,009     $ (34,669 )   $ (51,229 )   $ 98,111  
Note 18 - Commitments and Contingencies (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
(in $000s)  

Years Ended

December 31,  

 

2014

  $ 2,253  

2015

    1,365  

2016

    741  

2017

    342  

2018

    310  

Thereafter

    2,362  

Total minimum lease payments

  $ 7,373  
Note 20 - Supplementary Financial Information (unaudited) (Tables)
12 Months Ended
Dec. 31, 2013
Quarterly Periods In 2013 [Member]
Dec. 31, 2012
Quarterly Periods In 2012 [Member]
Schedule of Quarterly Financial Information [Table Text Block]
   

2013 Quarters Ended:

 

(in $000’s except shares and per share amounts)

 

March 31

   

June 30

   

September 30

   

December 31

 
Revenue:                                

Global Product sales, gross

  $ 197,956     $ 217,721     $ 279,441     $ 288,315  

Less:

                               

Chargebacks

    64,345       82,013       98,449       111,903  

Rebates

    30,572       35,649       54,530       68,363  

Product Returns

    94       1,989       2,857       1,989  

Other credits

    5,160       8,312       11,919       21,639  

Global Product sales, net

    97,785       89,758       111,686       84,423  
                                 

Rx Partner

    3,114       3,668       3,016       1,841  

Other Revenues

    737       539       1,046       727  

Global Division revenues, net

    101,636       93,965       115,748       86,991  
                                 

Impax Product sales, gross

    69,292       48,300       22,849       21,244  

Less:

                               

Chargebacks

    7,790       10,095       8,422       6,690  

Rebates

    6,236       (1,735 )     (812 )     485  

Product Returns

    1,490       2,197       175       224  

Other credits

    7,255       2,409       (1,498 )     361  

Impax Product sales, net

    46,521       35,334       16,562       13,484  
                                 

Other Revenues

    332       332       331       266  

Impax Division revenues, net

    46,853       35,666       16,893       13,750  
                                 

Total revenues

    148,489       129,631       132,641       100,741  
                                 

Gross profit

    57,871       58,887       48,342       34,200  
                                 

Net income (loss)

  $ 105,442     $ 5,619     $ (180 )   $ (9,622 )
                                 

Net income (loss) per share (basic)

  $ 1.59     $ 0.08     $ (0.00 )   $ (0.14 )

Net income (loss) per share (diluted)

  $ 1.55     $ 0.08     $ (0.00 )   $ (0.14 )
                                 

Weighted average: common shares outstanding:

                               

Basic

    66,487,470       66,748,864       67,051,121       67,385,969  

Diluted

    68,178,355       68,287,948       67,051,121       67,385,969  
Schedule of Quarterly Financial Information [Table Text Block]
   

2012 Quarters Ended:

 
(in $000’s except shares and per share amounts)  

March 31

   

June 30

   

September 30

   

December 31

 
Revenue:                                

Global Product sales, gross

  $ 185,671     $ 223,449     $ 178,628     $ 177,830  

Less:

                               

Chargebacks

    39,155       50,670       47,366       59,460  

Rebates

    20,589       26,847       24,285       22,995  

Product Returns

    (329 )     948       304       (1,730 )

Other credits

    10,045       18,552       7,212       17,334  

Global Product sales, net

    116,211       126,432       99,461       79,771  
                                 

Other Revenues

    7,054       6,633       967       12,153  

Global Division revenues, net

    123,265       133,065       100,428       91,924  
                                 

Impax Product sales, gross

    --       40,818       63,909       65,141  

Less:

                               

Chargebacks

    --       4,449       8,308       44  

Rebates

    --       3,714       5,113       7,556  

Product Returns

    --       878       1,374       1,558  

Other credits

    --       3,683       5,785       9,285  

Impax Product sales, net

    --       28,094       43,329       46,698  
                                 

Other Revenues

    5,303       5,301       1,830       2,455  

Impax Division revenues, net

    5,303       33,395       45,159       49,153  
                                 

Total revenues

    128,568       166,460       145,587       141,077  
                                 

Gross profit

    62,553       77,823       78,027       64,151  
                                 

Net income

  $ 12,365     $ 18,672     $ 20,037     $ 4,799  
                                 

Net income per share (basic)

  $ 0.19     $ 0.29     $ 0.30     $ 0.07  

Net income per share (diluted)

  $ 0.18     $ 0.27     $ 0.29     $ 0.07  
                                 

Weighted average: common shares outstanding:

                               

Basic

    65,122,240       65,482,700       65,797,722       66,217,421  

Diluted

    67,907,263       67,954,573       68,366,849       68,419,888  
Supplemental Cash Flow Information (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Supplemental Cash Flow Elements [Abstract]
 
 
 
Accrued Vendor Invoices
$ 6,210,000 
$ 10,017,000 
$ 795,000 
Note 1 - The Company (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended
Jun. 4, 2013
Jun. 30, 2013
Dec. 31, 2013
Note 1 - The Company (Details) [Line Items]
 
 
 
Number of Reportable Segments
 
 
Number Of Channels
 
 
Number of Internally Developed Late Stage Branded Pharmaceutical Product Candidate
 
 
Number Of Properties
 
 
Number Of Leased Properties
 
 
Restructuring and Related Cost, Number of Positions Eliminated
110 
 
 
Restructuring and Related Cost, Incurred Cost (in Dollars)
 
$ 3.0 
 
Separation Pay and Benefits [Member] |
President and CEO [Member]
 
 
 
Note 1 - The Company (Details) [Line Items]
 
 
 
Employee-related Liabilities (in Dollars)
 
2.7 
 
Accelerated Expense, Outstanding Options and Restricted Stock [Member] |
President and CEO [Member]
 
 
 
Note 1 - The Company (Details) [Line Items]
 
 
 
Employee-related Liabilities (in Dollars)
 
2.3 
 
President and CEO [Member]
 
 
 
Note 1 - The Company (Details) [Line Items]
 
 
 
Employee-related Liabilities (in Dollars)
 
$ 5.0 
 
Note 2 - Summary of Significant Accounting Policies (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Quantifying Aggregate Misstatement In Current Year Financial Statements Amount (in Dollars)
$ 600,000 
 
 
Quantifying Misstatement In Current Year Financial Statements Earnings Per Share Diluted (in Dollars per share)
$ 0.01 
 
 
Number of Largest Customers
Cash Discount Discount Rate
2.00% 
 
 
Shipping, Handling and Transportation Costs (in Dollars)
1,890,000 
1,425,000 
1,341,000 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax (in Dollars)
(4,104,000)
3,520,000 
(1,087,000)
Amortization of Financing Costs (in Dollars)
$ 30,000 
$ 30,000 
$ 28,000 
Global Division [Member] |
Top 10 Generic Products [Member] |
Product Concentration Risk [Member] |
Sales [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Concentration Risk, Percentage
68.00% 
70.00% 
76.00% 
Impax Division [Member] |
Zomig Products [Member] |
Product Concentration Risk [Member] |
Sales [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Concentration Risk, Percentage
100.00% 
 
 
Top 10 Generic Products [Member] |
Product Concentration Risk [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Number Of Products
10 
 
 
Prohealth [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Equity Method Investment, Ownership Percentage
57.54% 
 
 
Building [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
40 years 
 
 
Building Improvements [Member] |
Minimum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
10 years 
 
 
Building Improvements [Member] |
Maximum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
15 years 
 
 
Equipment [Member] |
Minimum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
8 years 
 
 
Equipment [Member] |
Maximum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
10 years 
 
 
Office Furniture and Equipment [Member] |
Minimum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
4 years 
 
 
Office Furniture and Equipment [Member] |
Maximum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Property, Plant and Equipment, Useful Life
10 years 
 
 
Period Prior To Expiration Date [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Product Return Period
6 months 
 
 
Period Following Expiration Date [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Product Return Period
12 months 
 
 
Minimum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Cash Discount Invoice Terms
30 days 
 
 
Maximum [Member]
 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
 
 
 
Cash Discount Invoice Terms
90 days 
 
 
Note 2 - Summary of Significant Accounting Policies (Details) - Percentage Of Total Accounts Receivable And Gross Revenues (Customer Concentration Risk [Member])
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Customer 1 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
35.10% 
31.90% 
30.40% 
Customer 1 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
25.10% 
25.20% 
19.60% 
Customer 2 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
28.80% 
23.30% 
12.90% 
Customer 2 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
30.60% 
21.80% 
15.90% 
Customer 3 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
18.50% 
18.40% 
25.70% 
Customer 3 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
20.30% 
15.10% 
19.40% 
Customer 4 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
 
 
8.60% 
Customer 4 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
 
9.20% 
12.40% 
Customer 5 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
 
3.70% 
2.50% 
Customer 5 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
2.50% 
 
 
Customer 6 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
 
3.10% 
 
Customer 6 [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
2.40% 
2.90% 
2.40% 
Customer 7 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
2.90% 
 
 
Customer 8 [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
1.00% 
 
 
Total 5 Largest Customers [Member] |
Accounts Receivable [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
86.30% 
80.40% 
80.10% 
Total 5 Largest Customers [Member] |
Gross Revenues [Member]
 
 
 
Concentration Risk [Line Items]
 
 
 
Concentration percentage
80.90% 
74.20% 
69.70% 
Note 4 - Investments (Details) - A Summary Of Short-Term Investments (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
 
 
Amortized Cost
$ 228,521 
$ 156,756 
Gross Unrecognized Gains
39 
55 
Gross Unrecognized Losses
(21)
(12)
Fair Value
228,539 
156,799 
Commercial Paper [Member]
 
 
Schedule of Held-to-maturity Securities [Line Items]
 
 
Amortized Cost
91,480 
70,140 
Gross Unrecognized Gains
26 
28 
Fair Value
91,506 
70,168 
Corporate Bonds [Member]
 
 
Schedule of Held-to-maturity Securities [Line Items]
 
 
Amortized Cost
137,041 
76,622 
Gross Unrecognized Gains
13 
23 
Gross Unrecognized Losses
(21)
(12)
Fair Value
137,033 
76,633 
US Government-sponsored Enterprises Debt Securities [Member]
 
 
Schedule of Held-to-maturity Securities [Line Items]
 
 
Amortized Cost
 
9,994 
Gross Unrecognized Gains
 
Fair Value
 
$ 9,998 
Note 5 - Accounts Receivable (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Receivables [Abstract]
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 539,000 
$ 553,000 
Note 5 - Accounts Receivable (Details) - The Composition Of Accounts Receivable, Net (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
The Composition Of Accounts Receivable, Net [Abstract]
 
 
Gross accounts receivable
$ 246,319 
$ 167,696 
Less: Rebate reserve
(88,449)
(46,011)
Less: Chargeback reserve
(37,066)
(18,410)
Less: Other deductions
(7,811)
(11,026)
Accounts receivable, net
$ 112,993 
$ 92,249 
Note 5 - Accounts Receivable (Details) - A Roll Forward Of The Rebate And Chargeback Reserves Activity (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Ending balance
$ 37,066 
$ 18,410 
 
Ending balance
88,449 
46,011 
 
Rebate Reserve [Member]
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Beginning balance
46,011 
29,164 
23,547 
Provision recorded during the period
193,288 
111,099 
79,697 
Credits issued during the period
(150,850)
(94,252)
(74,080)
Ending balance
88,449 
46,011 
29,164 
Chargeback Reserve [Member]
 
 
 
Financing Receivable, Allowance for Credit Losses [Line Items]
 
 
 
Provision recorded during the period
389,707 
209,452 
166,504 
Credits issued during the period
(371,051)
(213,203)
(159,261)
Ending balance
37,066 
18,410 
22,161 
Beginning balance
$ 18,410 
$ 22,161 
$ 14,918 
Note 6 - Inventory (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Mar. 31, 2013
Finished and Unfinished Inventory Related to Discontinued Products [Member]
Mar. 31, 2013
Impact of Expected Delay of FDA Approval [Member]
Mar. 31, 2013
Additional Pre-launch Inventory of Product Manufactured for Third-Party [Member]
Dec. 31, 2013
Unapproved Inventory [Member]
Dec. 31, 2012
Unapproved Inventory [Member]
Dec. 31, 2013
Raw Materials [Member]
Dec. 31, 2013
Finished Goods [Member]
Note 6 - Inventory (Details) [Line Items]
 
 
 
 
 
 
 
 
 
Inventory Valuation Reserves
$ 17,702,000 
$ 5,231,000 
$ 6,700,000 
$ 5,000,000 
$ 6,400,000 
 
 
 
 
Unapproved Product Inventory Net
 
 
 
 
 
$ 6,462,000 
$ 12,106,000 
 
 
Inventory Turnover Period Minimum
 
 
 
 
 
 
 
3 years 
 
Inventory Turnover Period Maximum
 
 
 
 
 
 
 
5 years 
2 years 
Note 6 - Inventory (Details) - Inventory, Net Of Carrying Value Reserves (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Inventory, Net Of Carrying Value Reserves [Abstract]
 
 
Raw materials
$ 27,981 
$ 31,884 
Work in process
1,434 
4,005 
Finished goods
47,416 
60,956 
Total inventory
76,831 
96,845 
Less: Non-current inventory
6,725 
7,081 
Total inventory-current
$ 70,107 
$ 89,764 
Note 7 - Property, Plant and Equipment (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Abstract]
 
 
 
Depreciation
$ 16,782,000 
$ 15,982,000 
$ 14,911,000 
Note 7 - Property, Plant and Equipment (Details) - Property, Plant And Equipment, Net (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Property, Plant And Equipment, Net [Abstract]
 
 
Land
$ 5,773 
$ 5,773 
Buildings and improvements
139,657 
130,995 
Equipment
114,950 
110,353 
Office furniture and equipment
11,523 
10,558 
Construction-in-progress
15,910 
9,843 
Property, plant and equipment, gross
287,813 
267,522 
Less: Accumulated depreciation
(99,622)
(86,764)
Property, plant and equipment, net
$ 188,191 
$ 180,758 
Note 8 - Goodwill and Intangible Assets (Details) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2012
Products Approved [Member]
Tolmar Incorporated [Member]
Dec. 31, 2013
Products Approved [Member]
Tolmar Incorporated [Member]
Jun. 30, 2012
Product Pending Approval [Member]
Tolmar Incorporated [Member]
Dec. 31, 2013
Product Pending Approval [Member]
Tolmar Incorporated [Member]
Sep. 30, 2013
Abbreviated New Drug Applications [Member]
Research and Development Expense [Member]
Dec. 31, 2013
Milestone Payment Arrangement [Member]
Tolmar Incorporated [Member]
Sep. 30, 2013
Cost of Sales [Member]
Dec. 31, 2013
Zomig Product Rights Tablet [Member]
Dec. 31, 2013
Zomig Product Rights Orally Disintegrating Tablet [Member]
Dec. 31, 2013
Zomig Product Rights Nasal Spray [Member]
Dec. 31, 2013
Zomig Product Rights [Member]
Dec. 31, 2013
Tolmar Product Rights [Member]
Jun. 30, 2012
Tolmar Incorporated [Member]
Dec. 31, 2013
Tolmar Incorporated [Member]
Dec. 31, 2013
Minimum [Member]
Tolmar Product Rights [Member]
Dec. 31, 2013
Maximum [Member]
Tolmar Product Rights [Member]
Note 8 - Goodwill and Intangible Assets (Details) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$ 27,574,000 
$ 27,574,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
 
 
 
 
 
 
 
14 months 
11 months 
72 months 
 
 
 
 
5 years 
12 years 
Finite-Lived Intangible Assets, Purchase Accounting Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
(3,300,000)
 
 
 
 
 
Number Of Products
 
 
10 
10 
 
 
 
 
 
 
 
 
11 
11 
 
 
Impairment of Intangible Assets (Excluding Goodwill)
13,906,000 
 
 
 
 
 
800,000 
 
13,200,000 
 
 
 
 
13,156,000 
 
 
 
 
Collaborative Arrangement Contingent Payments Received And Potentially To Be Received
 
 
 
 
 
 
 
12,000,000 
 
 
 
 
 
 
 
 
 
 
Amortization of Intangible Assets
$ 13,061,000 
$ 18,846,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 8 - Goodwill and Intangible Assets (Details) - Intangible Assets (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Amortized intangible assets:
 
 
Initial cost
$ 75,483,000 
$ 66,796,000 
Accumulated amortization
(31,907,000)
(18,846,000)
Impairment
(13,906,000)
 
Carrying value
29,670,000 
47,950,000 
Other Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
2,250,000 
2,250,000 
Impairment
(750,000)
 
Carrying value
1,500,000 
2,250,000 
Zomig Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
41,783,000 
45,096,000 
Accumulated amortization
(28,641,000)
(17,987,000)
Carrying value
13,142,000 
27,109,000 
Tolmar Product Rights [Member]
 
 
Amortized intangible assets:
 
 
Initial cost
31,450,000 
19,450,000 
Accumulated amortization
(3,266,000)
(859,000)
Impairment
(13,156,000)
 
Carrying value
$ 15,028,000 
$ 18,591,000 
Note 8 - Goodwill and Intangible Assets (Details) - Expected Amortization Expense (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Expected Amortization Expense [Abstract]
 
2014
$ 9,721 
2015
5,295 
2016
4,104 
2017
3,912 
2018
2,273 
Thereafter
2,865 
Total
$ 28,170 
Note 9 - Accrued Expenses (Details) - The Company’s Accrued Expenses (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
The Company’s Accrued Expenses [Abstract]
 
 
Payroll-related expenses
$ 27,985 
$ 22,553 
Product returns
28,089 
23,440 
Government rebates
23,351 
33,794 
Legal and professional fees
3,162 
3,993 
Clinical trial costs
(277)
1,610 
Income taxes payable
21,186 
1,541 
Physician detailing sales force fees
1,512 
1,471 
Other
6,515 
4,340 
Total accrued expenses
$ 111,523 
$ 92,742 
Note 9 - Accrued Expenses (Details) - A Roll Forward Of The Product Return Reserve (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 9 - Accrued Expenses (Details) - A Roll Forward Of The Product Return Reserve [Line Items]
 
 
 
Ending balance
$ 28,089 
$ 23,440 
 
Returns Reserve [Member]
 
 
 
Note 9 - Accrued Expenses (Details) - A Roll Forward Of The Product Return Reserve [Line Items]
 
 
 
Beginning balance
23,440 
24,101 
33,755 
Provision related to sales recorded in the period
11,015 
3,003 
688 
Credits issued during the period
(6,366)
(3,664)
(10,342)
Ending balance
$ 28,089 
$ 23,440 
$ 24,101 
Note 10 - Income Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Note 10 - Income Taxes (Details) [Line Items]
 
 
 
 
Operating Loss Carryforwards Period
9 years 
 
 
 
Unrecognized Tax Benefits
$ 5,292,000 
$ 2,920,000 
$ 1,791,000 
$ 1,579,000 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
4,100,000 
2,300,000 
1,500,000 
 
Unrecognized Tax Benefits, Interest on Income Taxes Expense
299,000 
3,000 
85,000 
 
Unrecognized Tax Benefits, Interest on Income Taxes Accrued
602,000 
303,000 
 
 
Foreign Tax Authority [Member]
 
 
 
 
Note 10 - Income Taxes (Details) [Line Items]
 
 
 
 
Operating Loss Carryforwards
$ 244,000 
 
 
 
Note 10 - Income Taxes (Details) - Provision For Income Taxes (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Current:
 
 
 
Federal taxes
$ 67,407 
$ 49,636 
$ 23,500 
State taxes
2,569 
1,721 
1,034 
Foreign taxes
742 
453 
1,154 
Total current tax expense
70,718 
51,810 
25,688 
Deferred:
 
 
 
Federal taxes
(21,050)
(21,650)
5,646 
State taxes
(1,965)
(2,537)
592 
Foreign taxes
(2,022)
(185)
690 
Total deferred tax (benefit) expense
(25,037)
(24,372)
6,928 
Provision for income taxes
$ 45,681 
$ 27,438 
$ 32,616 
Note 10 - Income Taxes (Details) - Table Of Effective Income Tax Rate Reconciliation (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 10 - Income Taxes (Details) - Table Of Effective Income Tax Rate Reconciliation [Line Items]
 
 
 
Income before income taxes
$ 146,940 
$ 83,311 
$ 98,111 
Tax provision at the federal statutory rate
51,429 
29,159 
34,339 
Tax provision at the federal statutory rate
35.00% 
35.00% 
35.00% 
Increase (decrease) in tax rate resulting from:
 
 
 
Tax rate differential and permanent items on foreign income
383 
(1,259)
185 
Tax rate differential and permanent items on foreign income
0.30% 
(1.50%)
0.20% 
State income taxes, net of federal benefit
1,616 
1,906 
3,673 
State income taxes, net of federal benefit
1.10% 
2.30% 
3.70% 
Share-based compensation
92 
326 
92 
Share-based compensation
0.10% 
0.40% 
0.10% 
Executive compensation
336 
825 
586 
Executive compensation
0.20% 
1.00% 
0.60% 
Domestic manufacturing deduction
(1,666)
(2,010)
(2,187)
Domestic manufacturing deduction
(1.10%)
(2.40%)
(2.20%)
Other permanent book/tax differences
(967)
(185)
(119)
Other permanent book/tax differences
(0.70%)
(0.20%)
(0.10%)
Provision for uncertain tax positions
1,718 
801 
178 
Provision for uncertain tax positions
1.10% 
0.90% 
0.20% 
Other, net
(473)
(173)
(162)
Other, net
(0.30%)
(0.20%)
(0.20%)
Provision for income taxes
45,681 
27,438 
32,616 
Provision for income taxes
31.10% 
32.90% 
33.20% 
State and Local Jurisdiction [Member]
 
 
 
Increase (decrease) in tax rate resulting from:
 
 
 
Research and development credits
(1,787)
(1,560)
(1,560)
Research and development credits
(1.20%)
(1.90%)
(1.60%)
Domestic Tax Authority [Member]
 
 
 
Increase (decrease) in tax rate resulting from:
 
 
 
Research and development credits
(1,900)
 
(2,100)
Research and development credits
(1.30%)
 
(2.20%)
Prior Year's Estimates [Member]
 
 
 
Increase (decrease) in tax rate resulting from:
 
 
 
Revision of prior years’ income taxes
(1,150)
(392)
(309)
Revision of prior years’ income taxes
(0.80%)
(0.50%)
(0.30%)
Prior Year Federal R&D Credits [Member]
 
 
 
Increase (decrease) in tax rate resulting from:
 
 
 
Revision of prior years’ income taxes
$ (1,950)
 
 
Revision of prior years’ income taxes
(1.30%)
 
 
Note 10 - Income Taxes (Details) - Components Of The Company’s Deferred Tax Assets And Liabilities (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Deferred tax assets:
 
 
Deferred revenues
$ 2,961 
$ 4,545 
Accrued expenses
44,404 
38,839 
Inventory reserves
6,681 
2,630 
Net operating loss carryforwards
61 
149 
Depreciation and amortization
275 
428 
Acquired product rights and intangibles
15,147 
7,284 
Capitalized legal fees
11,245 
6,981 
R&D credit carryforwards
3,238 
2,062 
Share based compensation expense
4,786 
3,446 
Other
745 
850 
Deferred tax assets
89,543 
67,214 
Deferred tax liabilities:
 
 
Tax depreciation and amortization in excess of book amounts
2,592 
3,544 
Deferred manufacturing costs
65 
80 
Other
2,172 
1,810 
Deferred tax liabilities
4,829 
5,434 
Deferred tax assets, net
84,714 
61,780 
Current deferred tax assets
52,959 
44,196 
Current deferred tax liabilities
(2,171)
(1,810)
Current deferred tax assets, net
50,788 
42,386 
Non-current deferred tax assets
36,583 
23,018 
Non-current deferred tax liabilities
(2,657)
(3,624)
Non-current deferred tax assets, net
$ 33,926 
$ 19,394 
Note 10 - Income Taxes (Details) - A Rollforward Of Unrecognized Tax Benefits (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
A Rollforward Of Unrecognized Tax Benefits [Abstract]
 
 
 
Unrecognized tax benefits beginning of year
$ 2,920 
$ 1,791 
$ 1,579 
Gross change for current year positions
797 
249 
188 
Gross change for prior period positions
1,575 
1,231 
24 
Decrease due to settlements and payments
 
(351)
 
Unrecognized tax benefits end of year
$ 5,292 
$ 2,920 
$ 1,791 
Note 11 - Revolving Line of Credit (Details) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2013
Letter of Credit [Member]
Dec. 31, 2013
Minimum [Member]
Alternate Base Rate [Member]
Dec. 31, 2013
Minimum [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 31, 2011
Minimum [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 31, 2013
Minimum [Member]
Dec. 31, 2013
Maximum [Member]
Alternate Base Rate [Member]
Dec. 31, 2012
Maximum [Member]
Alternate Base Rate [Member]
Dec. 31, 2013
Maximum [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 31, 2013
Maximum [Member]
Note 11 - Revolving Line of Credit (Details) [Line Items]
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)
$ 50,000,000 
$ 10,000,000 
 
 
 
 
 
 
 
 
Equity Interest Pledged As Collateral
65.00% 
 
 
 
 
 
 
 
 
 
Debt Instrument, Term
4 years 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
0.50% 
1.50% 
 
 
1.50% 
 
2.50% 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
 
 
 
 
 
0.25% 
 
 
 
0.45% 
Minimum Unrestricted Cash as Defined in Credit Agreement (in Dollars)
100,000,000 
 
 
 
 
 
 
 
 
 
Total Net Leverage Ratio
3.75 
 
 
 
 
 
 
 
 
 
Senior Secured Leverage Ratio
2.50 
 
 
 
 
 
 
 
 
 
Fixed Charge Coverage Ratio
2.00 
 
 
 
 
 
 
 
 
 
EBITDA, Maximum Non-recurring Remediation and Restructuring Charges (in Dollars)
25,000,000 
 
 
 
 
 
 
 
 
 
Minimum Consolidated EBITDA (in Dollars)
50,000,000 
 
 
 
 
 
 
 
 
 
Minimum Liquidity (in Dollars)
100,000,000 
 
 
 
 
 
 
 
 
 
Debt Instrument, Unused Borrowing Capacity, Fee (in Dollars)
 
 
$ 139,000 
 
$ 144,000 
 
 
$ 95,000 
 
 
Note 12 - Alliance and Collaboration Agreements (Details) (USD $)
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 25 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jun. 30, 2012
Products Approved [Member]
Tolmar Incorporated [Member]
Dec. 31, 2013
Products Approved [Member]
Tolmar Incorporated [Member]
Jun. 30, 2012
Product Pending Approval [Member]
Tolmar Incorporated [Member]
Dec. 31, 2013
Product Pending Approval [Member]
Tolmar Incorporated [Member]
Dec. 31, 2012
Products in Development [Member]
Tolmar Incorporated [Member]
Dec. 31, 2013
Generic Products [Member]
Valeant [Member]
Dec. 31, 2013
Branded Advanced Form of Solodyn Product [Member]
Valeant [Member]
Dec. 31, 2011
Generic Dermatology Products Sold [Member]
Valeant [Member]
Dec. 31, 2013
IND-enabling Animal Studies for New Development Candidate [Member]
Minimum [Member]
Dec. 31, 2013
IND-enabling Animal Studies for New Development Candidate [Member]
Maximum [Member]
Dec. 31, 2013
Phase 1 Trials [Member]
Minimum [Member]
Dec. 31, 2013
Phase 1 Trials [Member]
Maximum [Member]
Dec. 31, 2013
Phase 2 Trials [Member]
Minimum [Member]
Dec. 31, 2013
Phase 2 Trials [Member]
Maximum [Member]
Dec. 31, 2013
Phase 3 Trials [Member]
Minimum [Member]
Dec. 31, 2013
Phase 3 Trials [Member]
Maximum [Member]
Dec. 31, 2013
Bioequivalence Studies [Member]
Minimum [Member]
Dec. 31, 2013
Bioequivalence Studies [Member]
Maximum [Member]
Dec. 31, 2013
Preparation And Submission Of Regulatory Filings [Member]
Minimum [Member]
Dec. 31, 2013
Preparation And Submission Of Regulatory Filings [Member]
Maximum [Member]
Dec. 31, 2013
Acceptance Of Regulatory Filings For Substantive Review [Member]
Dec. 31, 2013
Potential Marketing Approval One [Member]
Minimum [Member]
Dec. 31, 2013
Potential Marketing Approval One [Member]
Maximum [Member]
Dec. 31, 2013
Potential Marketing Approval Two [Member]
Minimum [Member]
Dec. 31, 2013
Potential Marketing Approval Two [Member]
Maximum [Member]
Dec. 31, 2013
Milestone Payments [Member]
Tolmar Incorporated [Member]
Dec. 31, 2012
Milestone Payments [Member]
Tolmar Incorporated [Member]
Mar. 31, 2011
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2009
Milestone Payments [Member]
Valeant [Member]
Sep. 30, 2009
Milestone Payments [Member]
Valeant [Member]
Mar. 31, 2009
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2013
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2010
Milestone Payments [Member]
Valeant [Member]
Dec. 31, 2013
Milestone Payments [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2013
Milestone Payments [Member]
Glaxo Group Limited [Member]
Dec. 31, 2008
Up-front Payment Arrangement [Member]
Valeant [Member]
Jun. 30, 2010
Up-front Payment Arrangement [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2010
Up-front Payment Arrangement [Member]
Glaxo Group Limited [Member]
Dec. 31, 2013
Milestone Payment Arrangement [Member]
Tolmar Incorporated [Member]
Mar. 31, 2011
Milestone Payment Arrangement [Member]
Valeant [Member]
Dec. 31, 2013
Clinical Milestone Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2013
Regulatory Milestone Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2013
Commercialization Events [Member]
Endo Pharmaceuticals Incorporation [Member]
Sep. 30, 2013
Cost of Sales [Member]
Sep. 30, 2013
Cost of Sales [Member]
Tolmar Product Rights [Member]
Dec. 31, 2013
Tolmar Product Rights [Member]
Dec. 31, 2013
Specified Threshold [Member]
Dec. 31, 2013
Shire Laboratories Incorporated [Member]
Dec. 31, 2012
Shire Laboratories Incorporated [Member]
Dec. 31, 2011
Shire Laboratories Incorporated [Member]
Jun. 30, 2012
Tolmar Incorporated [Member]
Dec. 31, 2013
Tolmar Incorporated [Member]
Dec. 31, 2012
Tolmar Incorporated [Member]
Dec. 31, 2013
Teva Pharmaceutical Industries Limited [Member]
Dec. 31, 2013
Pfizer Incorporated [Member]
Dec. 31, 2012
Pfizer Incorporated [Member]
Dec. 31, 2011
Pfizer Incorporated [Member]
Dec. 31, 2013
Valeant [Member]
Apr. 30, 2013
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2013
Endo Pharmaceuticals Incorporation [Member]
Dec. 31, 2013
OTC Partners Alliance Agreement [Member]
Dec. 31, 2012
Astra Zeneca [Member]
Dec. 31, 2013
Minimum [Member]
Tolmar Product Rights [Member]
Dec. 31, 2013
Maximum [Member]
Tolmar Product Rights [Member]
Note 12 - Alliance and Collaboration Agreements (Details) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Completion Period
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
18 months 
1 year 
2 years 
1 year 
3 years 
2 years 
4 years 
3 months 
1 year 
6 months 
12 months 
2 months 
1 year 
3 years 
1 year 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Sales
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation Settlement, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
48,000,000 
 
 
 
 
 
 
 
 
 
 
102,049,000 
 
 
 
 
 
Increase (Decrease) in Other Accrued Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,406,000 
70,948,000 
107,145,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Of Products
 
 
 
 
10 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
11 
 
10 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Up Front Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21,000,000 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Required Payment Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
86,436,000 
 
 
Collaborative Arrangement Maximum Contingent Payments Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,000,000 
 
30,000,000 
169,000,000 
 
 
 
 
 
15,000,000 
5,000,000 
10,000,000 
 
 
 
 
 
 
 
 
12,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
12 years 
Research and Development Expense
 
68,854,000 
81,320,000 
82,701,000 
 
 
 
 
1,550,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of Intangible Assets (Excluding Goodwill)
 
13,906,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,200,000 
13,200,000 
13,156,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Loan Amount Pursuant to Loan and Security Agreement
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable, Net
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service Agreement Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
15 years 
 
 
 
 
 
 
 
 
 
Receivable Collection Period
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Profit Share Collection Period
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Maximum Profit Share Payments Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
Number of Units of Accounting
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Contingent Payments Received And Potentially To Be Received
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
2,000,000 
5,000,000 
5,000,000 
 
12,000,000 
 
 
40,000,000 
 
 
12,000,000 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period After The First Commercial Sale Of The Advanced Form Of SOLODYN Product The Company Is Receiving Royalty Fee Income
 
8 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Revenue, Additions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
11,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Copromotion Service Fee Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
Deferred Revenue Estimated Period Of Recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
91 months 
 
 
 
 
Deferred Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,338,000 
 
 
 
 
Gain (Loss) Related to Litigation Settlement
102,049,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collaborative Arrangement Transition Payment Percentage Of Gross Profit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
Collaborative Arrangement Quarterly Payments Made
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
130,000,000 
 
 
Finite-Lived Intangible Assets, Gross
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,096,000 
 
 
Prepaid Royalties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
41,340,000 
 
 
Sales Revenue, Services, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 7,070,000 
$ 14,140,000 
 
 
 
 
 
 
 
Note 12 - Alliance and Collaboration Agreements (Details) - Additions To And Deductions From The Deferred Revenue Under The Teva Agreement (Teva Pharmaceutical Industries Limited [Member], USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
Beginning balance
 
 
$ 4,410,000 
Additions
 
 
551,000 
Ending deferred revenue
1,087,000 
2,396,000 
3,705,000 
Deferred Revenue Recognition [Member]
 
 
 
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
Less amounts recognized
$ (1,309,000)
$ (1,309,000)
$ (1,256,000)
Note 12 - Alliance and Collaboration Agreements (Details) - Expected Recognition Of Deferred Revenue (Teva Pharmaceutical Industries Limited [Member], USD $)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Teva Pharmaceutical Industries Limited [Member]
 
 
 
 
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
 
2014
$ 1,087,000 
 
 
 
Total
$ 1,087,000 
$ 2,396,000 
$ 3,705,000 
$ 4,410,000 
Note 12 - Alliance and Collaboration Agreements (Details) - Additions To And Deductions From Deferred Revenue Under The Joint Development Agreement With Valeant (Valeant [Member], USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Valeant [Member]
 
 
 
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
Beginning balance
$ 3,650,000 
$ 12,410,000 
$ 25,948,000 
Less amount recognized
(1,825,000)
(8,760,000)
(13,538,000)
Ending deferred revenue
$ 1,825,000 
$ 3,650,000 
$ 12,410,000 
Note 12 - Alliance and Collaboration Agreements (Details) - Expected Recognition Of Deferred Revenue (Valeant [Member], USD $)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Valeant [Member]
 
 
 
 
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
 
2014
$ 1,825,000 
 
 
 
Total
$ 1,825,000 
$ 3,650,000 
$ 12,410,000 
$ 25,948,000 
Note 13 - Employee Benefit Plans (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Feb. 28, 2001
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent
25.00% 
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent of Match
50.00% 
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay
3.00% 
 
 
 
Defined Contribution Plan Employers Discretionary Profit-Sharing And Matching Contributions Vesting Period
3 years 
 
 
 
Defined Contribution Plan, Cost Recognized (in Dollars)
$ 1,501,000 
$ 1,428,000 
$ 1,254,000 
 
Common Stock, Capital Shares Reserved for Future Issuance (in Shares)
 
 
 
500,000 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date
15.00% 
 
 
 
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars)
3,552,000 
7,764,000 
11,326,000 
 
Deferred Compensation Arrangement With Individual, Contributions By Plan Participants, Percentage Of Salary, Maximum
75.00% 
 
 
 
Deferred Compensation Arrangement With Individual, Contributions By Plan Participants, Percentage Of Bonus, Maximum
100.00% 
 
 
 
Deferred Compensation Arrangement With Individual, Employer Contribution, Percentage
50.00% 
 
 
 
Deferred Compensation Arrangement With Individual, Employer Contribution, Percentage Of Eligible Salary
10.00% 
 
 
 
Deferred Compensation Arrangement With Individual, Employer Match Contributions, Vesting Period
5 years 
 
 
 
Deferred Compensation Arrangement with Individual, Employer Contribution (in Dollars)
764,000 
717,000 
589,000 
 
Cash Surrender Value of Life Insurance (in Dollars)
25,025,000 
19,017,000 
 
 
Deferred Compensation Liability, Classified, Noncurrent (in Dollars)
23,940,000 
18,617,000 
 
 
Annually For First 5 Years Of Employment [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Deferred Compensation Arrangement With Individual, Percentage Vested
20.00% 
 
 
 
After 5 Years Of Employment [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Deferred Compensation Arrangement With Individual, Percentage Vested
100.00% 
 
 
 
The ESPP Plan [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares)
39,748 
44,731 
47,128 
 
Stock Issued During Period, Value, Employee Stock Purchase Plan (in Dollars)
$ 660,000 
$ 829,000 
$ 887,000 
 
After 3 Years Of Service [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
100.00% 
 
 
 
After 1 Year Of Service [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
25.00% 
 
 
 
After 2 Years Of Service [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage
50.00% 
 
 
 
Maximum [Member]
 
 
 
 
Note 13 - Employee Benefit Plans (Details) [Line Items]
 
 
 
 
Deferred Compensation Arrangement With Individual, Employer Contribution, Percentage Of Eligible Salary
5.00% 
 
 
 
Note 14 - Share-Based Compensation (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2013
Stock Options and Restricted Stock Awards [Member]
Dec. 31, 2013
Stock Options and Restricted Stock Awards [Member]
Minimum [Member]
Dec. 31, 2013
Stock Options and Restricted Stock Awards [Member]
Maximum [Member]
Dec. 31, 2013
Restricted Stock [Member]
Dec. 31, 2013
Restricted Shares Withheld For Minimum Withholding Tax [Member]
Dec. 31, 2013
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2012
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2011
The 1999 Equity Incentive Plan [Member]
Oct. 31, 2000
The 1999 Equity Incentive Plan [Member]
Sep. 30, 2000
The 1999 Equity Incentive Plan [Member]
Dec. 31, 2013
Amended And Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2012
Amended And Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2011
Amended And Restated 2002 Equity Incentive Plan [Member]
Dec. 31, 2013
The ESPP Plan [Member]
Note 14 - Share-Based Compensation (Details) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
 
 
 
 
 
 
 
3 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
2,400,000 
14,950,000 
11,800,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number
 
 
3,770,905 
4,177,221 
5,073,097 
6,514,676 
 
 
 
 
 
50,312 
115,785 
379,872 
 
 
3,720,593 
4,061,436 
4,693,225 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
 
 
2,123,835 
1,954,570 
1,663,911 
1,434,759 
 
 
 
 
 
 
 
 
 
 
2,123,835 
1,954,570 
1,663,911 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term
 
 
5 years 354 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term
 
 
4 years 226 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars)
 
 
$ 43,089,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars)
 
 
37,728,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding (in Dollars)
 
 
 
 
 
 
 
 
 
8,523,000 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number
 
 
3,338,356 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
undefined
 
 
1,880,216 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period
 
 
617,302 
585,392 
452,861 
 
 
 
 
 
233,275 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value (in Dollars per share)
 
 
$ 18.80 
$ 14.72 
$ 11.81 
 
 
 
 
 
$ 19.97 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant
 
 
3,511,851 
 
 
 
 
 
 
 
 
296,921 
 
 
 
 
3,063,055 
 
 
151,875 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)
 
 
40,274,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition
 
 
1 year 332 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars)
 
 
8,780,000 
12,380,000 
19,192,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value (in Dollars)
 
 
11,604,000 
8,614,000 
5,347,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate
 
 
0.00% 
0.00% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Following The Retirement Date For Grants Expected To Vest Which Will Vest As Of The Chief Executive Officer's Retirement Date
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost (in Dollars)
 
2,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After Tax Share-based Compensation Effect On Earnings Per Share Basic (in Dollars per share)
 
 
$ 0.19 
$ 0.18 
$ 0.15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After Tax Share-based Compensation Effect On Earnings Per Share Diluted (in Dollars per share)
 
 
$ 0.19 
$ 0.17 
$ 0.14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense (in Dollars)
 
 
$ 4,829,000 
$ 4,335,000 
$ 3,078,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 14 - Share-Based Compensation (Details) - Summary Of Stock Option Activity (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Summary Of Stock Option Activity [Abstract]
 
 
 
Options Outstanding
4,177,221 
5,073,097 
6,514,676 
Options Outstanding (in Dollars per share)
$ 12.72 
$ 11.76 
$ 10.84 
Options exercisable at December 31, 2013
2,853,560 
 
 
Options exercisable at December 31, 2013 (in Dollars per share)
$ 12.04 
 
 
Options granted
506,000 
278,500 
424,000 
Options granted (in Dollars per share)
$ 18.06 
$ 20.90 
$ 24.78 
Options exercised
(814,177)
(1,060,746)
(1,605,043)
Options exercised (in Dollars per share)
$ 9.28 
$ 11.16 
$ 11.02 
Options forfeited
(98,139)
(113,630)
(260,536)
Options forfeited (in Dollars per share)
$ 19.51 
$ 16.69 
$ 9.73 
Options Outstanding
3,770,905 
4,177,221 
5,073,097 
Options Outstanding (in Dollars per share)
$ 14.01 
$ 12.72 
$ 11.76 
Note 14 - Share-Based Compensation (Details) - A Summary Of Non-Vested Restricted Stock Awards (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
A Summary Of Non-Vested Restricted Stock Awards [Abstract]
 
 
 
Non-vested
1,954,570 
1,663,911 
1,434,759 
Non-vested (in Dollars per share)
$ 20.97 
$ 17.20 
$ 12.93 
Granted
1,032,924 
1,015,937 
868,549 
Granted (in Dollars per share)
$ 19.92 
$ 23.41 
$ 20.73 
Vested
(617,302)
(585,392)
(452,861)
Vested (in Dollars per share)
$ 18.80 
$ 14.72 
$ 11.81 
Forfeited
(246,357)
(139,886)
(186,536)
Forfeited (in Dollars per share)
$ 20.69 
$ 19.08 
$ 13.71 
Non-vested
2,123,835 
1,954,570 
1,663,911 
Non-vested (in Dollars per share)
$ 21.13 
$ 20.97 
$ 17.20 
Note 14 - Share-Based Compensation (Details) - Stock Option Valuation Assumptions
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 14 - Share-Based Compensation (Details) - Stock Option Valuation Assumptions [Line Items]
 
 
 
Volatility (range)
41.70% 
 
 
Volatility (weighted average)
41.70% 
49.10% 
52.30% 
Risk-free interest rate (weighted average)
1.20% 
1.00% 
2.10% 
Dividend yield
0.00% 
0.00% 
0.00% 
Expected life (years)
6 years 69 days 
6 years 69 days 
6 years 73 days 
Weighted average grant date fair value (in Dollars per share)
$ 7.54 
$ 9.93 
$ 12.85 
Minimum [Member]
 
 
 
Note 14 - Share-Based Compensation (Details) - Stock Option Valuation Assumptions [Line Items]
 
 
 
Volatility (range)
 
48.50% 
50.70% 
Risk-free interest rate (range)
1.10% 
0.90% 
1.50% 
Maximum [Member]
 
 
 
Note 14 - Share-Based Compensation (Details) - Stock Option Valuation Assumptions [Line Items]
 
 
 
Volatility (range)
 
49.30% 
52.70% 
Risk-free interest rate (range)
1.90% 
1.00% 
2.30% 
Note 14 - Share-Based Compensation (Details) - Share-Based Compensation Expense Recognized By The Company (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-Based Compensation
$ 17,644 
$ 16,303 
$ 12,685 
Cost of Sales [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-Based Compensation
2,035 
2,405 
1,917 
Research and Development Expense [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-Based Compensation
4,885 
4,658 
4,119 
Selling, General and Administrative Expenses [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Share-Based Compensation
$ 10,724 
$ 9,240 
$ 6,649 
Note 15 - Stockholders' Equity (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Stockholders' Equity Note [Abstract]
 
 
Preferred Stock, Shares Authorized
2,000,000 
2,000,000 
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)
$ 0.01 
$ 0.01 
Common Stock, Shares Authorized
90,000,000 
90,000,000 
Common Stock, Par or Stated Value Per Share (in Dollars per share)
$ 0.01 
$ 0.01 
Note 16 - Earnings Per Share (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Share [Abstract]
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
1,741,110 
905,899 
1,244,493 
Note 16 - Earnings Per Share (Details) - Reconciliation Of Basic And Diluted Earnings Per Share (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Reconciliation Of Basic And Diluted Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income (in Dollars)
$ (9,622)
$ (180)
$ 5,619 
$ 105,442 
$ 4,799 
$ 20,037 
$ 18,672 
$ 12,365 
$ 101,259 
$ 55,873 
$ 65,495 
Weighted average common shares outstanding
67,385,969 
67,051,121 
66,748,864 
66,487,470 
66,217,421 
65,797,722 
65,482,700 
65,122,240 
66,921,181 
65,660,271 
64,126,855 
Effect of dilutive stock options and and restricted stock
 
 
 
 
 
 
 
 
1,733,857 
2,744,280 
3,193,134 
Diluted weighted average common shares outstanding
67,385,969 
67,051,121 
68,287,948 
68,178,355 
68,419,888 
68,366,849 
67,954,573 
67,907,263 
68,655,038 
68,404,551 
67,319,989 
Basic net income per share (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.59 
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 1.51 
$ 0.85 
$ 1.02 
Diluted net income per share (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.55 
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 1.47 
$ 0.82 
$ 0.97 
Note 17 - Segment Information (Details) (USD $)
12 Months Ended 0 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Feb. 7, 2014
Subsequent Event [Member]
Global Division [Member]
Generic Products [Member]
Feb. 7, 2014
Subsequent Event [Member]
Generic Products [Member]
Alliance and Collaboration Agreement Partners [Member]
Dec. 31, 2013
Taiwan Facility Construction [Member]
Dec. 31, 2012
Taiwan Facility Construction [Member]
Note 17 - Segment Information (Details) [Line Items]
 
 
 
 
 
 
Number of Reportable Segments
 
 
 
 
 
Number Of Products
 
 
117 
 
 
Number Of Different Pharmaceutical Compounds
 
 
38 
 
 
Number of Internally Developed Late Stage Branded Pharmaceutical Product Candidate
 
 
 
 
 
Assets (in Dollars)
$ 996,923,000 
$ 863,970,000 
 
 
$ 137,137,000 
$ 126,684,000 
Note 17 - Segment Information (Details) - Segment Information Reconciled To Total Company Consolidated Financial Results (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues, net
$ 100,741,000 
$ 132,641,000 
$ 129,631,000 
$ 148,489,000 
$ 141,077,000 
$ 145,587,000 
$ 166,460,000 
$ 128,568,000 
$ 511,502,000 
$ 581,692,000 
$ 512,919,000 
Cost of revenues
 
 
 
 
 
 
 
 
312,202,000 
299,138,000 
254,624,000 
Research and development
 
 
 
 
 
 
 
 
68,854,000 
81,320,000 
82,701,000 
Patent litigation
 
 
 
 
 
 
 
 
16,545,000 
9,772,000 
7,506,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
120,288,000 
108,470,000 
68,477,000 
Income (loss) before provision for income taxes
 
 
 
 
 
 
 
 
146,940,000 
83,311,000 
98,111,000 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues, net
86,991,000 
115,748,000 
93,965,000 
101,636,000 
91,924,000 
100,428,000 
133,065,000 
123,265,000 
398,340,000 
448,682,000 
491,710,000 
Cost of revenues
 
 
 
 
 
 
 
 
253,836,000 
229,355,000 
242,713,000 
Research and development
 
 
 
 
 
 
 
 
41,384,000 
48,604,000 
46,169,000 
Patent litigation
 
 
 
 
 
 
 
 
16,545,000 
9,772,000 
7,506,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
17,684,000 
15,377,000 
11,313,000 
Income (loss) before provision for income taxes
 
 
 
 
 
 
 
 
68,891,000 
145,574,000 
184,009,000 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues, net
13,750,000 
16,893,000 
35,666,000 
46,853,000 
49,153,000 
45,159,000 
33,395,000 
5,303,000 
113,162,000 
133,010,000 
21,209,000 
Cost of revenues
 
 
 
 
 
 
 
 
58,366,000 
69,783,000 
11,911,000 
Research and development
 
 
 
 
 
 
 
 
27,470,000 
32,716,000 
36,532,000 
Selling, general and administrative
 
 
 
 
 
 
 
 
44,915,000 
37,896,000 
7,435,000 
Income (loss) before provision for income taxes
 
 
 
 
 
 
 
 
(17,589,000)
(7,385,000)
(34,669,000)
Corporate and Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
57,689,000 
55,197,000 
49,729,000 
Income (loss) before provision for income taxes
 
 
 
 
 
 
 
 
$ 95,638,000 
$ (54,878,000)
$ (51,229,000)
Note 18 - Commitments and Contingencies (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 18 - Commitments and Contingencies (Details) [Line Items]
 
 
 
Operating Leases, Rent Expense
$ 1,932,000 
$ 1,719,000 
$ 1,691,000 
Purchase Commitment, Remaining Minimum Amount Committed
48,820,000 
 
 
Purchase Commitment Period
1 year 
 
 
Taiwan Facility Construction [Member]
 
 
 
Note 18 - Commitments and Contingencies (Details) [Line Items]
 
 
 
Contractual Obligation
$ 9,750,000 
 
 
Note 18 - Commitments and Contingencies (Details) - Future Minimum Lease Payments Under The Non-Cancelable Operating Leases (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Future Minimum Lease Payments Under The Non-Cancelable Operating Leases [Abstract]
 
2014
$ 2,253 
2015
1,365 
2016
741 
2017
342 
2018
310 
Thereafter
2,362 
Total minimum lease payments
$ 7,373 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 100,741 
$ 132,641 
$ 129,631 
$ 148,489 
$ 141,077 
$ 145,587 
$ 166,460 
$ 128,568 
$ 511,502 
$ 581,692 
$ 512,919 
Gross profit
34,200 
48,342 
58,887 
57,871 
64,151 
78,027 
77,823 
62,553 
199,300 
282,554 
258,295 
Net income (loss)
(9,622)
(180)
5,619 
105,442 
4,799 
20,037 
18,672 
12,365 
101,259 
55,873 
65,495 
Net income (loss) per share (basic) (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.59 
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 1.51 
$ 0.85 
$ 1.02 
Net income (loss) per share (diluted) (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.55 
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 1.47 
$ 0.82 
$ 0.97 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic (in Shares)
67,385,969 
67,051,121 
66,748,864 
66,487,470 
66,217,421 
65,797,722 
65,482,700 
65,122,240 
66,921,181 
65,660,271 
64,126,855 
Diluted (in Shares)
67,385,969 
67,051,121 
68,287,948 
68,178,355 
68,419,888 
68,366,849 
67,954,573 
67,907,263 
68,655,038 
68,404,551 
67,319,989 
Global Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
111,903 
98,449 
82,013 
64,345 
59,460 
47,366 
50,670 
39,155 
 
 
 
Global Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
68,363 
54,530 
35,649 
30,572 
22,995 
24,285 
26,847 
20,589 
 
 
 
Global Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
21,639 
11,919 
8,312 
5,160 
17,334 
7,212 
18,552 
10,045 
 
 
 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue goods gross
288,315 
279,441 
217,721 
197,956 
177,830 
178,628 
223,449 
185,671 
 
 
 
Sales revenue goods net
84,423 
111,686 
89,758 
97,785 
79,771 
99,461 
126,432 
116,211 
 
 
 
Revenues
86,991 
115,748 
93,965 
101,636 
91,924 
100,428 
133,065 
123,265 
398,340 
448,682 
491,710 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
1,989 
2,857 
1,989 
94 
(1,730)
304 
948 
(329)
 
 
 
Global Division [Member] |
Rx Partner [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
1,841 
3,016 
3,668 
3,114 
 
 
 
 
 
 
 
Global Division [Member] |
Other Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
727 
1,046 
539 
737 
12,153 
967 
6,633 
7,054 
 
 
 
Impax Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
6,690 
8,422 
10,095 
7,790 
44 
8,308 
4,449 
 
 
 
 
Impax Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
485 
(812)
(1,735)
6,236 
7,556 
5,113 
3,714 
 
 
 
 
Impax Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
361 
(1,498)
2,409 
7,255 
9,285 
5,785 
3,683 
 
 
 
 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue goods gross
21,244 
22,849 
48,300 
69,292 
65,141 
63,909 
40,818 
 
 
 
 
Sales revenue goods net
13,484 
16,562 
35,334 
46,521 
46,698 
43,329 
28,094 
 
 
 
 
Sales revenue net
266 
331 
332 
332 
 
 
 
 
 
 
 
Revenues
13,750 
16,893 
35,666 
46,853 
49,153 
45,159 
33,395 
5,303 
113,162 
133,010 
21,209 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
224 
175 
2,197 
1,490 
1,558 
1,374 
878 
 
 
 
 
Impax Division [Member] |
Other Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue net
 
 
 
 
2,455 
1,830 
5,301 
5,303 
 
 
 
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
 
 
 
 
 
 
 
 
389,707 
209,452 
166,504 
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
 
 
 
 
 
 
 
 
$ 193,288 
$ 111,099 
$ 79,697 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 100,741 
$ 132,641 
$ 129,631 
$ 148,489 
$ 141,077 
$ 145,587 
$ 166,460 
$ 128,568 
$ 511,502 
$ 581,692 
$ 512,919 
Gross profit
34,200 
48,342 
58,887 
57,871 
64,151 
78,027 
77,823 
62,553 
199,300 
282,554 
258,295 
Net income
(9,622)
(180)
5,619 
105,442 
4,799 
20,037 
18,672 
12,365 
101,259 
55,873 
65,495 
Net income per share (basic) (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.59 
$ 0.07 
$ 0.30 
$ 0.29 
$ 0.19 
$ 1.51 
$ 0.85 
$ 1.02 
Net income per share (diluted) (in Dollars per share)
$ (0.14)
$ 0.00 
$ 0.08 
$ 1.55 
$ 0.07 
$ 0.29 
$ 0.27 
$ 0.18 
$ 1.47 
$ 0.82 
$ 0.97 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic (in Shares)
67,385,969 
67,051,121 
66,748,864 
66,487,470 
66,217,421 
65,797,722 
65,482,700 
65,122,240 
66,921,181 
65,660,271 
64,126,855 
Diluted (in Shares)
67,385,969 
67,051,121 
68,287,948 
68,178,355 
68,419,888 
68,366,849 
67,954,573 
67,907,263 
68,655,038 
68,404,551 
67,319,989 
Global Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
111,903 
98,449 
82,013 
64,345 
59,460 
47,366 
50,670 
39,155 
 
 
 
Global Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
68,363 
54,530 
35,649 
30,572 
22,995 
24,285 
26,847 
20,589 
 
 
 
Global Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
21,639 
11,919 
8,312 
5,160 
17,334 
7,212 
18,552 
10,045 
 
 
 
Global Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue goods gross
288,315 
279,441 
217,721 
197,956 
177,830 
178,628 
223,449 
185,671 
 
 
 
Sales revenue goods net
84,423 
111,686 
89,758 
97,785 
79,771 
99,461 
126,432 
116,211 
 
 
 
Revenues
86,991 
115,748 
93,965 
101,636 
91,924 
100,428 
133,065 
123,265 
398,340 
448,682 
491,710 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
1,989 
2,857 
1,989 
94 
(1,730)
304 
948 
(329)
 
 
 
Global Division [Member] |
Other Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other Revenues
727 
1,046 
539 
737 
12,153 
967 
6,633 
7,054 
 
 
 
Impax Division [Member] |
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
6,690 
8,422 
10,095 
7,790 
44 
8,308 
4,449 
 
 
 
 
Impax Division [Member] |
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
485 
(812)
(1,735)
6,236 
7,556 
5,113 
3,714 
 
 
 
 
Impax Division [Member] |
Other Credits [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
361 
(1,498)
2,409 
7,255 
9,285 
5,785 
3,683 
 
 
 
 
Impax Division [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales revenue goods gross
21,244 
22,849 
48,300 
69,292 
65,141 
63,909 
40,818 
 
 
 
 
Sales revenue goods net
13,484 
16,562 
35,334 
46,521 
46,698 
43,329 
28,094 
 
 
 
 
Other Revenues
266 
331 
332 
332 
 
 
 
 
 
 
 
Revenues
13,750 
16,893 
35,666 
46,853 
49,153 
45,159 
33,395 
5,303 
113,162 
133,010 
21,209 
Weighted average: common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Product Returns
224 
175 
2,197 
1,490 
1,558 
1,374 
878 
 
 
 
 
Impax Division [Member] |
Other Revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other Revenues
 
 
 
 
2,455 
1,830 
5,301 
5,303 
 
 
 
Chargeback Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
 
 
 
 
 
 
 
 
389,707 
209,452 
166,504 
Rebate Reserve [Member]
 
 
 
 
 
 
 
 
 
 
 
Note 20 - Supplementary Financial Information (unaudited) (Details) - Selected Financial Information For The Quarterly Periods Noted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales allowances goods
 
 
 
 
 
 
 
 
$ 193,288 
$ 111,099 
$ 79,697 
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation And Qualifying Accounts (Allowance for Doubtful Accounts [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Allowance for Doubtful Accounts [Member]
 
 
 
Valuation Allowance [Line Items]
 
 
 
Balance at Beginning of Period
$ 553 
$ 612 
$ 539 
Charge to Costs and Expenses
 
 
163 
Deductions
(14)
(59)
(90)
Balance at End of Period
$ 539 
$ 553 
$ 612