NOTE 2: RESTRUCTURING

During fiscal 2010, the Company committed to a plan to reduce its Irvine, California workforce by approximately 60 employees over a period of approximately 26 months. As part of this workforce reduction plan, substantially all of the Company's California-based wedge bonder manufacturing, as well as certain administrative functions, have been transferred to the Company's manufacturing facilities in Kuala Lumpur, Malaysia and Singapore. The Company anticipates cash payments for the California-based wedge bonder transfer to Asia to be substantially complete by the end of fiscal 2012. In addition the Company is consolidating certain of its other U.S.-based operations to Asia.

The following table reflects severance activity during the three and nine months ended July 2, 2011 and July 3, 2010:

	Three months ended						Nine months ended
(in thousands)	July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010

Accrual for estimated severance and benefits, beginning of period	$	3,153		$	2,073		$	2,395		$	2,413
Provision for severance and benefits: Equipment segment (1)		275			619			1,961			787
Provision for severance and benefits: Expendable Tools segment (1)		19			427			481			784
Payment of severance and benefits		(783	)		(447	)		(2,173	)		(1,312	)
Accrual for estimated severance and benefits, end of period (2)	$	2,664		$	2,672		$	2,664		$	2,672

(1) Provision for severance and benefits is the total amount expected to be incurred and is included within selling, general and administrative expenses on the Consolidated Statements of Operations.

(2) The accrual for estimated severance as of July 2, 2011 and July 3, 2010 was included within accrued expenses and other current liabilities and other liabilities on the Consolidated Balance Sheets. In addition to these restructuring amounts, as of July 2, 2011, the Company had other non-restructuring severance obligations included within accrued expenses and other current liabilities and other liabilities on the Consolidated Balance Sheets.