Supply Agreement Termination

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Supply Agreement Termination

Supply Agreement Termination

In June 2018, the Company agreed to terminate a previously long-term supply agreement and replaced it with a short-term agreement. In December 2018, as a result of the termination, the Company received consideration of $24.9 million which included $21.3 million in cash as well as receipt of certain tangible assets with a fair value of $3.6 million. The consideration was recorded as a deferred liability with $9.5 million in Other current liabilities and the remaining $15.4 million recorded in Other long-term liabilities. Beginning in January 2019, the deferred liability is being amortized on a straight-line basis through July 2021, which is the end of the new supply agreement, as a reduction of Cost of goods sold. For the three and nine months ended September 30, 2019 amortization of the deferred liability was $2.4 million and $7.2 million, respectively.