Accrued Expenses and Other Current Liabilities

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



	As of		As of
(in thousands)	December 31, 2013		September 30, 2013
Compensation	$	6,118	$	4,361
Warranty	3,884		4,030
Termination fee	2,775		2,775
Professional fees	1,247		676
Royalty	958		1,061
Customer deposits	805		730
Deferred revenue	870		2,565
Self insurance	1,319		1,352
Income and other taxes	1,409		1,345
Loss on sale contracts	551		415
Severance and restructuring accruals	762		601
Other	1,378		1,686
Accrued expenses and other current liabilities	$	22,076	$	21,597

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 remained 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.

On November 15, 2013, Mr. Chris Larocca proposed to resign as the Company's Chief Operating Officer, effective as of November 30, 2013. The Company recorded a charge of $0.5 million in the three months ended December 31, 2013 related to the separation agreement entered into as part of Mr. Larocca's resignation.

Our severance and 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) income. 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, 2013	$	523		$	78	601
Expense - charged to accrual	454			—		454
Payments and accrual adjustments	(293		)	—		(293		)
Balance as of December 31, 2013	$	684		$	78	$	762

Warranty: We generally provide product and other warranties on our solar cells, components, power systems, and fiber optic products, in addition to certain already divested product lines where we retained the warranty obligations. Certain parts and labor warranties from our vendors can be assigned to our customers. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information.

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



Product Warranty Accruals	For the three months ended December 31,
(in thousands)	2013			2012
Balance at beginning of period	$	4,561		$	3,692
Provision for product warranty - expense	265			629
Adjustments and utilization of warranty accrual	(411		)	(149		)
Balance at end of period	$	4,415		$	4,172
Current portion	$	3,884		$	3,764
Non-current portion	531			408
Product warranty liability at end of period	$	4,415		$	4,172

The decrease in our provision for product warranty expense for the three months ended December 31, 2013 compared to the same period in 2012 was primarily due to specific customer warranty claims in 2012.