Annual report pursuant to Section 13 and 15(d)

Accrued Expenses

Accrued Expenses

12 Months Ended

Sep. 27, 2014

ACCRUED EXPENSES

Accrued expenses consist of the following (in thousands):



	September 27, 2014		September 28, 2013		June 29, 2013
Accrued employee compensation and benefits	$	10,505	$	8,916	$	9,762
Taxes accrued and withheld	1,173		742		1,199
Accrued insurance	728		557		568
Accrued advertising	411		397		363
Accrued royalties	2,878		3,198		3,001
Accrued commissions	564		650		677
Derivative liability	—		100		49
Other	3,908		2,903		2,807
	$	20,167	$	17,463	$	18,426

During the fourth quarter of fiscal year 2014, certain strategic initiatives were implemented to improve the Company's results of operations and financial position. As a result of these initiatives, approximately $4.0 million in expenses were recognized during the fourth quarter of fiscal year 2014.

These expenses consist of the following (in thousands):



	September 27, 2014
Severance expense	$	2,169
Reduced manufacturing production	868
Fixed asset impairment	984
	$	4,021

These expenses were reported in our Consolidated Statement of Operations as follows (in thousands):



	September 27, 2014
Cost of goods sold	$	868
Selling, general and administrative expenses	2,169
Other expense	984
	$	4,021

In fiscal year 2014, we paid $.8 million of these expenses. As of September 27, 2014, $1.8 million of these expenses were accrued and reported on our Consolidated Balance Sheet.