Litigation settlements, net reflects cash proceeds of $8.0 million from Hospira, Inc. and a waiver of $1.4 million in marketing fees payable to Abbott Laboratories. A receivable from Abbott for $144 thousand was also waived.
Benefit for income taxes consists principally of additional refunds due for our 2009 federal tax return reduced by $130 thousand due in Alternative Minimum Tax for 2010.
Cash flow from operations was $8.7 million for 2010 due principally to litigation settlements and improved results from operations.
Our cash position has improved $5.1 million, or 28.4%, over 2009. The improvement is directly related to the litigation settlement proceeds paid in 2010 and the effect of cost reduction measures taken in 2009 and 2010. The reduction in litigation costs, particularly from the second quarter of 2010 through the end of the year, was significant. We expect these lower litigation costs and the effect of the cost reductions to continue.Retractable manufactures and markets safety medical products, principally VanishPoint ® automated retraction safety syringes, automated retraction blood collection devices, and automated retraction IV catheters, that virtually eliminate healthcare worker exposure to accidental needlestick injuries. These revolutionary devices use patented technology that causes the contaminated needle to retract automatically, a feature that is designed to prevent both accidental needlestick injury and device reuse. Retractable also manufactures and markets Patient Safe ® syringes that are uniquely designed to reduce the risk of bloodstream infections resulting from catheter hub contamination. Retractable's products are distributed by various specialty and general line distributors. For more information on Retractable, visit our website at www.vanishpoint.com. Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect our current views with respect to future events. We believe that the expectations reflected in such forward-looking statements are accurate. However, we cannot assure you that such expectations will materialize. Our actual future performance could differ materially from such statements.
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