Business Realignment Expenses

12 Months Ended

Sep. 30, 2016

16. Business Realignment Expenses

On October 1, 2014, the Company announced that it had realigned its workforce in response to the new terms and scope of its DoD (third) Surplus Contract for non-rolling stock and to adjust for the efficiencies realized in its commercial business through ongoing integration efforts to support the future vision and growth of the Company. The business realignment included employee reductions across the organization. Business realignment expenses during the fiscal year ended September 30, 2014, included costs of $1.8 million in employee severance and benefit costs. In September 2015, the Company evaluated its business realignment effort which resulted in a net increase of $0.3 million in accrued expense primarily due to timing changes in commencement of the third DoD Surplus Contract and the delay in the wind-down of the NESA business.

The table below sets forth the significant components and activity in the business realignment initiatives during the fiscal year ended September 30, 2016.

(in thousands)	Liability Balance at September 30, 2015		Business Realignment Expenses			Cash Payments		Liability Balance at September 30, 2016
Employee severance and benefit costs for fiscal 2014 accrual	$	356	$	(21)		$	(335)	$	—
Employee severance and benefit costs for fiscal 2015 accrual		489		(80	)		(409)		—

Total	$	845	$	(101)		$	(744)	$	—

The business realignment expenses are recorded in costs and expenses from operations in the Consolidated Statement of Operations, and in accrued expenses and other current liabilities on the accompanying Consolidated Balance Sheets as of September 30, 2015 and 2016.