14.    Professional Fees and Other Expenses

In late 2012, a hedge fund manager publicly raised allegations regarding the legality of the Company’s network marketing program and announced that the hedge fund manager had taken a significant short position regarding the Company’s common shares, leading to intense public scrutiny and significant stock price volatility. The Company believes that the hedge fund manager’s allegations are inaccurate and misleading. The Company has engaged legal and advisory firms to assist with responding to the allegations and to perform other related services in connection to these recent events. The Company recognizes the related expenses as a part of selling, general & administrative expenses within its consolidated statement of income. For the years ended December 31, 2014 and 2013, the Company recorded approximately $25.1 million and $29.1 million, respectively, of professional fees and other expenses related to this matter.

Of the approximately $25.1 million and $29.1 million in expenses incurred during the years ended December 31, 2014 and 2013, respectively, discussed above, approximately $5.2 million and $6.0 million, respectively, was recognized for advisory retainer fees.

The Company was also party to a recently terminated agreement that contains a cash settlement liability award, or the Liability Award which is tied to the Company’s stock price and vests if certain conditions are met relating to the above matter. The fair value of the Liability Award will be revalued each quarter until settlement and the Company will recognize and adjust the expense over the expected requisite service period. During the years ended December 31, 2014 and 2013, the Company recognized a benefit of $1.7 million and an expense of $3.5 million, respectively, relating to the Liability Award, which is included in the approximately $25.1 million and $29.1 million expense amounts described above. As of December 31, 2014, the fair value of the Liability Award was $1.8 million which is recognized in accrued expenses within the Company’s consolidated balance sheet.