1. THE COMPANY &amp; BASIS OF PRESENTATION 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 to third parties 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 generic pharmaceutical OTC products sold through an unrelated third-party pharmaceutical entity under its own label pursuant to an alliance agreement. Revenues from the  Global Products  sales channel and the  Private Label  sales channel are reported under the caption  Global Product sales, net  in  Note 18   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 18   Supplementary Financial Information.  The Company provides these services through the research and development group in the Global Division. Revenues from the  OTC Partner  sales channel are also reported under the caption  Other Revenues  in  Note 18   Supplementary Financial Information.  The Impax Division is engaged in the development of proprietary brand pharm