Nutrisystem 2014 Annual Report Download - page 29

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(a) In 2013, a charge of $5,000 was recorded to settle certain disputes that had arisen with a supplier over a
legacy contract.
(b) In 2013, we recorded $2,357 for severance, including $696 of non-cash expense related to the acceleration
of previously awarded equity-based awards.
(c) During 2012, we recorded $5,724 of severance in general and administrative expense, including $3,293 of
non-cash expense related to the acceleration of previously awarded equity-based awards, for our former
President and Chief Executive Officer’s cessation of employment. Additionally, we recorded an impairment
charge of $2,100 related to advances paid to a frozen food supplier as the supplier was in default with its
bank lender and negotiating a work out plan and a charge of $1,980 to vacate a facility. We also recorded a
charge of $2,476 to restructure certain third party marketing vendor contracts and a charge of $1,079 to
write off unamortized debt issuance costs.
(d) In 2010, we committed to a plan to sell the business operations conducted by our subsidiary, Nutrisystem
Fresh, Inc., as it was no longer aligned with the business direction of the Company. During the third quarter
of 2010, this business was shut down as we were unsuccessful in locating a buyer. Accordingly, the
operating results of this discontinued operation have been presented separately from continuing operations
for all periods presented. The loss on discontinued operations during 2010 was primarily from operations.
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