Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities consisted of the following:



(in thousands)	As of		As of
	June 30,		September 30,
	2011		2010

Compensation-related	$	7,223	$	4,001
Warranty	4,715		4,851
Termination fee	2,775		2,775
Professional fees	607		2,530
Royalty	1,670		1,772
Advanced payments	4,598		7,437
Self insurance	978		957
Income and other taxes	992		747
Loss on sale contracts	396		561
Restructuring accruals	484		780
Loss on purchase commitments	—		86
Litigation settlements	1,465		—
Other	582		618

Accrued expenses and other current liabilities	$	26,485	$	27,115

We provide our customers with limited rights of return for non-conforming shipments and warranty claims for certain products. Pursuant to ASC 450, Contingencies, we make estimates of product warranty expense using historical experience rates as a percentage of revenue and/or costs of revenue and accrue estimated warranty expense as a cost of revenue. We estimate the costs of our warranty obligations based on historical experience of known product failure rates and anticipated rates if warranty claims, use of materials to repair or replace defective products, and service delivery costs incurred in correcting product issues. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should our actual experience relative to these factors differ from our estimates, we may be required to record additional warranty reserves. Alternatively, if we provide more reserves than needed, we may reverse a portion of such provisions in future periods. The following table summarizes the changes in the product warranty accrual accounts:



(in thousands)	For the Nine Months Ended June 30,
	2011			2010

Balance at beginning of period	$	4,851		$	4,287

Provision adjustment – expense	312			669
Utilization of warranty accrual	(448		)	(571		)

Balance at end of period	$	4,715		$	4,385

Our restructuring-related accrual specifically relates to non-cancelable lease payments on an abandoned facility. The following table summarizes the changes in the severance and restructuring-related accrual accounts:



(in thousands)	Severance-related accruals			Restructuring-related accruals			Total

Balance as of September 30, 2010	$	180		$	600		$	780

Expense - charge to accrual	39			—			39
Payments on accrual	(185		)	(150		)	(335		)

Balance as of June 30, 2011	$	34		$	450		$	484