COMMITMENTS AND CONTINGENCIES	9 Months Ended
Mar. 29, 2013
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES Restructuring – In June 2012, the Company entered into a separation agreement with its former Chief Executive Officer to provide benefits as defined in the original employment agreement. In accordance with the separation agreement, the Company agreed to pay an aggregate amount of $1,000 in severance, to be paid over an 18-month period, commencing with a payment of $250 on December 12, 2012, and the remaining $750 payable in equal installments over the period. In addition to the severance payment, the Company will provide continued health benefits for 18 months and all amounts credited to this individual’s account in an executive retirement plan became fully vested. The Company has recorded a total of $627 and $1,075 in other liabilities and other long-term liabilities on the Company’s consolidated balance sheet at March 29, 2013 and June 29, 2012, respectively. In March 2013, the Company entered into a separation agreement with its former Chief Legal Officer to provide benefits as defined in the original employment agreement. In accordance with the separation agreement, the Company agreed to pay an aggregate amount of $225 in severance, to be paid over a 12-month period, commencing with a payment of $113 on September 5, 2013, and the remaining $112 payable in equal installments over the next six months. The Company has recorded a liability of $225 in other liabilities on the Company’s consolidated balance sheet at March 29, 2013. Leases – In February 2013, the Company signed a lease amendment for our facility in Pittsburgh, Pennsylvania which will extend the lease for five years with the Company’s option for an additional five years after the initial period. The annual rent expense is approximately $618. Purchase Commitments – In March 2013, the Company recorded a charge for $251 related to open purchase order commitments for certain slower moving inventory. The $251 is recorded in other liabilities at March 29, 2013 in the Company’s condensed consolidated balance sheet. Other Matters – From time to time, we may be involved in a variety of claims, lawsuits, investigations and proceedings relating to securities laws, product liability, patent infringement, contract disputes and other matters relating to various claims that arise in the normal course of our business. In management’s opinion, resolution of these matters is not expected to have a material adverse impact on the Company’s results of operations, cash flows or its financial position. However, the results of litigation and claims cannot be predicted with certainty, and unfavorable resolutions are possible and could materially affect our results of operations, cash flows or financial position. In addition, regardless of the outcome, litigation could have an adverse impact on us because of defense costs, diversion of management resources and other factors. The Company has recorded liabilities of $14 as of March 29, 2013 and $495 as of June 29, 2012 for contract disputes and product liability matters. Also, during the thirty-nine weeks ended March 29, 2013, the Company received a payment of $98 for a product liability matter. This gain has been recorded as a reduction to cost of sales on the condensed consolidated statement of operations.

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 29, 2013

11. COMMITMENTS AND CONTINGENCIES

Restructuring – In June 2012, the Company entered into a separation agreement with its former Chief Executive Officer to provide benefits as defined in the original employment agreement. In accordance with the separation agreement, the Company agreed to pay an aggregate amount of $1,000 in severance, to be paid over an 18-month period, commencing with a payment of $250 on December 12, 2012, and the remaining $750 payable in equal installments over the period. In addition to the severance payment, the Company will provide continued health benefits for 18 months and all amounts credited to this individual’s account in an executive retirement plan became fully vested. The Company has recorded a total of $627 and $1,075 in other liabilities and other long-term liabilities on the Company’s consolidated balance sheet at March 29, 2013 and June 29, 2012, respectively.

In March 2013, the Company entered into a separation agreement with its former Chief Legal Officer to provide benefits as defined in the original employment agreement. In accordance with the separation agreement, the Company agreed to pay an aggregate amount of $225 in severance, to be paid over a 12-month period, commencing with a payment of $113 on September 5, 2013, and the remaining $112 payable in equal installments over the next six months. The Company has recorded a liability of $225 in other liabilities on the Company’s consolidated balance sheet at March 29, 2013.

Leases – In February 2013, the Company signed a lease amendment for our facility in Pittsburgh, Pennsylvania which will extend the lease for five years with the Company’s option for an additional five years after the initial period. The annual rent expense is approximately $618.

Purchase Commitments – In March 2013, the Company recorded a charge for $251 related to open purchase order commitments for certain slower moving inventory. The $251 is recorded in other liabilities at March 29, 2013 in the Company’s condensed consolidated balance sheet.

Other Matters – From time to time, we may be involved in a variety of claims, lawsuits, investigations and proceedings relating to securities laws, product liability, patent infringement, contract disputes and other matters relating to various claims that arise in the normal course of our business. In management’s opinion, resolution of these matters is not expected to have a material adverse impact on the Company’s results of operations, cash flows or its financial position. However, the results of litigation and claims cannot be predicted with certainty, and unfavorable resolutions are possible and could materially affect our results of operations, cash flows or financial position. In addition, regardless of the outcome, litigation could have an adverse impact on us because of defense costs, diversion of management resources and other factors. The Company has recorded liabilities of $14 as of March 29, 2013 and $495 as of June 29, 2012 for contract disputes and product liability matters. Also, during the thirty-nine weeks ended March 29, 2013, the Company received a payment of $98 for a product liability matter. This gain has been recorded as a reduction to cost of sales on the condensed consolidated statement of operations.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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-Subparagraph (SX 210.5-02.25)

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

DynaVox Inc. 10-Q