Note 9 - Other Financial Information

Legally restricted cash represents cash and cash equivalents that are cash and cash equivalents held in escrow or in similar accounts to ensure indemnification obligations of the Company.

Legally restricted cash is comprised of the following (in thousands):

		September 30, 2013		September 30, 2012

Indemnification reserve		4,000		4,000
Other escrows		0		341
	$	4,000	$	4,341

The indemnification reserve is a specific reserve set aside by the Company for any potential indemnified losses in lieu of the litigation trustee purchasing insurance coverage. Other escrows included a bank guaranty held in the Netherlands as of September 30, 2012 for which the Company received the related funds during the quarter ended September 30, 2013.

As of September 30, 2013, Assets held in trust for deferred compensation plan totaled $490,000. To conform to the current period presentation, the prior period amount has been reclassified from Cash-legally restricted to Assets held in trust for deferred compensation plan.

Other liabilities consist of the following (in thousands):

		September 30, 2013		September 30, 2012
Accrued compensation	$	1,304	$	1,221
CDRs		11,306		11,339
Other liabilities		168		501
	$	12,778	$	13,061

The liability for accrued compensation includes payroll and estimated amounts payable under the Company’s Bankruptcy court approved compensation plans.

The Company estimates the CDR liability based on the net equity of the Company after taking into consideration future operating costs and expenses, and other expected cash inflows in excess of book value, including estimated future interest income, estimated recoveries and the potential net distributions from the Litigation Trust for which estimates are currently not determinable. See the risk factors discussed in Item 1A, “Risk Factors”, particularly the risk entitled “Uncertainties Inherent in the CDR Liability Calculation”.

Other liabilities as of September 30, 2012 included an accrued contingent liability of approximately $340,000 related to a bank guaranty asset held in the Netherlands. The Company has received those funds during the fiscal year ended September 30, 2013.