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
	September 30, 2012		September 30, 2011
Compensation	$	3,798	$	4,222
Warranty	3,692		4,158
Termination fee	2,775		2,775
Professional fees	938		489
Royalty	1,445		1,627
Customer deposits	2,408		601
Deferred revenue	6,670		2,152
Self insurance	1,155		1,048
Capital lease obligations	4,411		1,279
Income and other taxes	1,573		1,269
Loss on sale contracts	765		480
Severance and restructuring accruals	1,521		405
Loss on inventory purchase commitments	723		—
Litigation settlements	—		1,445
Other	761		369
Accrued expenses and other current liabilities	$	32,635	$	22,319

Customer deposits: We signed agreements with certain customers related to our Fiber Optics segment pursuant to which they have received an allocation of our finished goods inventory that was not damaged by the Thailand flood, as well as have started to receive a percentage of output from our new production lines placed into service. As consideration, we received $6.8 million as partial prepayments for future product shipments, of which approximately $1.3 million is outstanding as of September 30, 2012. In December 2011, we also received a $3.3 million deposit from our Suncore joint venture related to an order for terrestrial CPV solar cells, of which $0.6 million is outstanding as of September 30, 2012.

Capital lease obligations: Equipment under capital lease as of September 30, 2011 was damaged by the Thailand flood and was written off against our outstanding capital lease obligation. During the fiscal year ended September 30, 2012, we capitalized the cost of our new manufacturing lines of approximately $5.2 million and recorded an equipment capital lease obligation of $4.4 million, net of equipment deposits.

Severance and restructuring accruals: In August 2012, Mr. Reuben Richards, Jr. proposed to the Board to step-down from his position as the Company's Executive Chairman and all other positions he held as an officer or employee of the Company and its affiliates, effective as of September 30, 2012. Mr. Richards will remain as Chairman of the Board and a member of the Board.

The Company and Mr. Richards entered into a separation agreement and general release, dated August 6, 2012 (Separation Agreement), which includes mutual releases by Mr. Richards and the Company of all claims related to Mr. Richards' employment and service relationship with, and termination of employment and service from, the Company. Under the terms of the Separation Agreement, Mr. Richards acknowledged and agreed that the restrictive covenants contained in his employment agreement would remain in full force and effect. The separation agreement provides for among other things, the continuation of his base salary for 88 weeks, benefits for 18 months, and immediate vesting of all his outstanding non-vested equity awards. These payments are not contingent upon any future service by Mr. Richards. In fiscal year 2012, we recorded a charge of $1.1 million related to Mr. Richards' separation agreement.

Our restructuring-related accrual specifically relates to the Separation Agreement and non-cancelable obligations associated with an abandoned leased facility. Expense related to severance and restructuring accruals is included in sales, general, and administrative expense on our statement of operations and comprehensive loss. 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 - charged to accrual	59			25			84
Payments and accrual adjustments	(234		)	(225		)	(459		)
Balance as of September 30, 2011	5			400			405
Expense - charged to accrual	1,128			230			1,358
Payments and accrual adjustments	(28		)	(214		)	(242		)
Balance as of September 30, 2012	$	1,105		$	416		$	1,521

The following table summarizes the changes in our product warranty accrual accounts:



Product Warranty Accruals (in thousands)	For the Fiscal Years Ended September 30,
	2012			2011			2010
Balance at beginning of period	$	4,158		$	4,851		$	4,287
Provision for product warranty - expense	(49		)	970			1,220
Adjustments and utilization of warranty accrual	(417		)	(1,663		)	(656		)
Balance at end of period	$	3,692		$	4,158		$	4,851