4. RESTRUCTURING

As a result of the Credence merger in August 2008, the Company assumed restructuring plans previously approved by Credence management designed to reduce headcount, consolidate facilities and to align that company's capacity and infrastructure to anticipated customer demand and transition of its operations for higher utilization of facility space.

During the three months ended October 31, 2011 and 2010, the Company extended the sublease assumptions for its previously restructured facilities which increased the accrued restructuring liability by $0.1 million in each of these quarters. As of October 31, 2011 the accrual for facility leases includes $3.1 million of long term payments to be made for the remainder of the respective lease terms which is included in other long term liabilities on the Company's consolidated balance sheet. The remainder of the accrual of $1.4 million is included in other accrued expenses on the Company's consolidated balance sheet.

The following table sets forth the Company's restructuring accrual activity for the three months ended October 31, 2011 and October 31, 2010 (in thousands):


	Severance Costs			Facility Leases			Total
	(in thousands)
Balance July 31, 2011	$	6		$	4,761		$	4,767
Additions to expense		—			46			46
Accretion and elimination of unfavorable lease liability		—			40			40
Cash paid		(6	)		(373	)		(379	)

Balance October 31, 2011	$	—		$	4,474		$	4,474


	Severance Costs			Facility Leases			Total
	(in thousands)
Balance July 31, 2010	$	84		$	5,810		$	5,894
Additions to expense		—			116			116
Accretion and elimination of unfavorable lease liability		—			21			21
Cash paid		(8	)		(406	)		(414	)

Balance October 31, 2010	$	76		$	5,541		$	5,617