13. Commitments and Contingencies Commitments Purchase Commitments The Company periodically enters into non-cancelable purchase contracts in order to ensure the availability of materials to support production of its products. Purchase commitments represent enforceable and legally binding agreements with suppliers to purchase goods or services. The Company periodically assesses the need to provide for impairment on these purchase contracts and record a loss on purchase commitments when required. As of December 31, 2012, the Company recorded a liability for adverse purchase commitments of $ 1.8 million. During the three and nine months ended December 31, 2012, the Company reduced its accrual for adverse purchase commitments by $ 10.3 million and $ 24.1 million, respectively due to settlements with and payments to certain vendors. On May 16, 2012, the Company entered into an agreement with one of its vendors to settle certain of its adverse purchase commitments. The agreement was amended on November 6, 2012 (as amended, the  Settlement Agreement ). In conjunction with the Settlement Agreement , the Company agreed to pay the vendor approximately ¬ 2.2 million (the  Settlement Amount ). Under the Settlement Agreement, the Company had the option, at its sole discretion, to pay the settlement amount in cash, shares of the Company s common stock, or a combination of cash and common stock. Accordingly, during the three months ended December 31, 2012, the Company issued 765,301 shares of common stock to the vendor and filed a registration statement on Form S-3 to register the vendor s resale of such shares of common stock. If the net proceeds from the vendor s resale of the shares of common stock during a specified period plus any other cash payments made by the Company subsequent to the date of the Settlement Agreement were less than the Settlement Amount, the Company agreed to make an additional payment equal to the shortfall in cash to the vendor no later than December 31, 2012. As of December 31, 2012 the Company made