Severance Costs

On December 3, 2013, the Company entered into the Settlement Agreement, pursuant to which the Company terminated its Chief Executive Officer and President, Timothy W. Newkirk. In connection with the Settlement Agreement, the Company agreed to pay Mr. Newkirk severance costs totaling $714. The Company also entered into a Transition Services Agreement, which obliges the Company to pay Mr. Newkirk up to $201, exclusive of out-of-pocket expenses. All such costs were expensed and accrued during 2013.

Certain other members of management were also terminated in fiscal 2013 and 2014.

Activity related to severance costs was as follows:



	Quarter Ended						Year to Date Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Balance at beginning of period	$	699		$	99		$	1,142		$	126
Provision for additional expense	184			—			313			1
Payments and adjustments	(336		)	(16		)	(908		)	(44		)
Balance at end of period	$	547		$	83		$	547		$	83

Severance costs are included in Selling, General and Administrative Expenses on the Consolidated Statement of Operations and the related accrual is included in Accrued Expenses on the Condensed Consolidated Balance Sheets.