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13. Related Party Transactions
9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

The Company paid fees for training course development and utilization of the delivery platform from a company, the majority of which is owned by a partnership in which a stockholder and another director have a controlling interest. Fees paid during the nine months ended September 30, 2013 and 2012 were less than $0.1 million, respectively.

 

As discussed further below in Note 14, “Commitments and Contingencies,” the Company entered into a Manufacturing and Supply Agreement (the “Cavalier Agreement”) with a plant in connection with its acquisition of Sanolite in July of 2011. Also in connection with the acquisition, two of the owners of both Sanolite and the manufacturing plant became Company employees. Purchases, pursuant to the Cavalier Agreement, for the three months ended September 30, 2013 and 2012 were $1.6 million and $1.8 million, respectively. Purchases, pursuant to the Cavalier Agreement, for the nine months ended September 30, 2013 and 2012 were $5.2 million and $5.6 million, respectively. At September 30, 2013 and December 31, 2012, the Company has $0.4 million and $0.5 million included in accounts payable due to this entity, respectively. As described further below, the transactions pursuant to the Cavalier Agreement are considered to be conducted at the going market prices for such products.

 

The Company is obligated to make lease payments pursuant to certain real property and equipment lease agreements with employees that were former owners of acquired companies. Payments during the three months ended September 30, 2013 and 2012 were $0.3 million and $0.4 million, respectively, and for the nine months ended September 30, 2013 and 2012 were $0.8 million and $1.2 million, respectively. In addition, during the nine months ended September 30, 2013, previously leased equipment was acquired at a fair market value, determined by a third party appraiser, of $0.2 million.