NOTE 3: BALANCE SHEET COMPONENTS

The following tables reflect the components of significant balance sheet accounts as of October 1, 2011 and October 2, 2010:

	As of
(in thousands)	October 1, 2011			October 2, 2010
Short term investments, available-for-sale:
Deposits maturing within one year (1)	$	6,364		$	2,985
	$	6,364		$	2,985

Inventories, net:
Raw materials and supplies	$	45,883		$	41,693
Work in process		26,237			26,682
Finished goods		16,071			15,658
		88,191			84,033
Inventory reserves (2)		(15,099	)		(10,140	)
	$	73,092		$	73,893

Property, plant and equipment, net:
Land	$	2,086		$	2,086
Buildings and building improvements (3)		5,026			8,651
Leasehold improvements		15,389			12,916
Data processing equipment and software		22,804			22,280
Machinery, equipment, furniture and fixtures		38,327			37,007
		83,632			82,940
Accumulated depreciation		(57,131	)		(52,881	)
	$	26,501		$	30,059

Accrued expenses and other current liabilities:
Wages and benefits	$	17,313		$	15,836
Accrued customer obligations (4)		11,388			8,918
Commissions and professional fees (5)		3,293			6,639
Severance (6)		3,083			2,947
Short-term facility accrual related to discontinued operations (Test)		1,564			1,734
Other		6,887			5,424
	$	43,528		$	41,498

(1) All short-term investments were classified as available for sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. As of October 1, 2011 and October 2, 2010, fair value approximated the cost basis for short-term investments. The Company did not recognize any realized gains or losses on the sale of investments during fiscal 2011 or 2010.

(2) Change primarily due to inventory reserves recorded which related to the Company’s die bonder inventory and its wedge bonder inventory in the U.S. and wedge bonder factory transition to Asia.

(3) In accordance with ASC 360, due to negative real estate trends and the Company’s transition of die bonder manufacturing from Berg, Switzerland to Asia, the Company recorded a $3.0 million write down in value for its building in Berg in fiscal 2011.

(4) Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit costs.

(5) Balances as of October 1, 2011 and October 2, 2010 include $0.3 million and $0.9 million, respectively, of liability classified stock compensation expenses in connection with the September 2010 retirement of the Company’s former Chief Executive Officer (“CEO”). In addition, balances for both periods include $0.3 million related to his three year consulting arrangement. An additional $0.2 million of liability classified stock compensation expenses was recorded in other liabilities related to the long term portion of his agreement (see Note 6) as of October 2, 2010. In addition, $0.3 million and $0.6 million were recorded within other liabilities related to the long term portion of his consulting agreement as of October 1, 2011 and October 2, 2010, respectively.

(6) Total severance payable within the next twelve months includes restructuring plan discussed in Note 2 and approximately $1.5 million of other severance not part of the Company’s plan for transition and consolidation of operations to Asia.