Annual report pursuant to Section 13 and 15(d)

Accrued Expenses

Accrued Expenses

12 Months Ended

Oct. 03, 2015

ACCRUED EXPENSES

Accrued expenses consist of the following (in thousands):



	October 3, 2015		September 27, 2014
Accrued employee compensation and benefits	$	10,704	$	10,505
Taxes accrued and withheld	1,455		1,173
Accrued insurance	349		728
Accrued advertising	363		411
Accrued royalties	2,173		2,878
Accrued commissions	512		564
Derivative liability	184		—
Accrued freight	1,501		780
Other	3,420		3,128
	$	20,661	$	20,167

During the fourth quarter of fiscal year 2014, we implemented certain strategic initiatives to improve our 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, consisting of $2.2 million in severance expense, $0.9 million in expense related to reduced manufacturing production, and $1.0 million in fixed asset impairments.

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

During fiscal year 2015, no additional expenses were incurred in association with our strategic initiatives and $1.3 million was disbursed during the fiscal year. During fiscal year 2014, $2.2 million was disbursed in association with our strategic initiatives. As of October 3, 2015, and September 27, 2014, $0.5 million and $1.8 million, respectively, of these expenses were accrued and reported on our Consolidated Balance Sheets.