19. SUPPLY AGREEMENT TERMINATION INCOME
Supply agreement termination income consisted of the following (amounts in thousands):
|
| | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
Supply agreement termination income | $ | — |
| | $ | 26,134 |
| | $ | — |
|
The Company's April 2011 acquisition of Goodyear's farm tire business included a three year supply agreement with Goodyear for certain non-farm tire products. A liability was recorded as the supply agreement was for sales at below market prices. In May 2012, the Company and Goodyear terminated this supply agreement and entered into an agreement under which Titan will sell these products directly to third party customers and pay a royalty to Goodyear. The remaining balance of the supply agreement liability was recorded as income as the Company is no longer obligated to sell the products at below market prices.
