Prepaid Expenses and Other Assets

12 Months Ended

Dec. 31, 2013

Prepaid Expenses and Other Assets

Prepaid Expenses and Other Assets

Note 4. Prepaid Expenses and Other Assets

        Prepaid expenses and other assets consist of (in thousands):

	Balance as of
	December 31, 2013		December 31, 2012
Prepaid insurance	$	3,617	$	6,979
Prepaid sales and marketing expenses		5,187		5,735
Prepaid medical affairs expenses		444		1,782
Manufacturing capacity commitment fees		461		2,300
Withholding tax receivable		5,560		—
Debt issuance costs		1,247		—
Other prepaid expenses and assets		3,422		2,363
Total	$	19,938	$	19,159

        The amounts included in prepaid expenses and other assets consist primarily of prepaid insurance, deposits and prepayments for future services, primarily related to prepaid product commercialization costs for services relating to future periods in support of the sales and marketing of Qsymia in the U.S., prepayments related to medical affairs activities for Qsymia and STENDRA, current portion of debt issuance costs, interest income receivable, withholding tax receivable and manufacturing capacity commitment fees. The withholding tax receivable represents refundable foreign tax withheld on payments Menarini Group, through its subsidiary Berlin-Chemie AG, or Menarini, made to the Company. These amounts represent probable future economic benefits obtained or controlled by the Company as a result of past transactions or events, which meet the definition of an asset under FASB Concept Statement 6. As such, these costs have been deferred as prepaid expenses and other assets on the condensed consolidated balance sheets and will be either (i) charged to expense accordingly when the related prepaid services are rendered to the Company, or (ii) converted to cash when the receivables are collected by the Company.