Revenue Recognition Collaborations Effective January 1, 2011, the Company adopted the accounting standards for revenue recognition related to multiple-deliverable revenue arrangements entered into or significantly modified after the date of adoption. Under the authoritative guidance, each deliverable within a multiple-element revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis and (2) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the Company s control. The Company considers a deliverable to have standalone value if the Company sells this item separately or if the item is sold by another vendor or could be resold by the customer. Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting. The Company determined that the adoption of this standard had no impact on revenues reported for the year ended December 31, 2010. In addition, there would be no change in the Company s accounting if the accounting standard were applied to ongoing collaboration agreements entered into prior to January 1, 2011. The Company determined that the adoption of this standard had no impact on revenues reported for the years ended December 31, 2012 and December 31, 2011. In the event the Company enters into or modifies a contract in which the deliverables are required to be separated, the Company will allocate arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company determines selling price using vendor-specific objective evidence ( VSOE ), if it exists; otherwise, the Company uses third-p