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 has consolidated certain of its other U.S.-based operations to Asia.

The following table reflects severance activity during the three months ended December 31, 2011 and January 1, 2011:

	Three months ended
(in thousands)	December 31, 2011			January 1, 2011
Accrual for estimated severance and benefits, beginning of period	$	1,834		$	2,395
Provision for estimated severance and benefits: Equipment segment (1)		-			1,144
Provision for estimated severance and benefits: Expendable Tools segment (1)		4			324
Payment of severance and benefits		(378	)		(390	)
Accrual for estimated severance and benefits, end of period (2)	$	1,460		$	3,473

(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) Included within accrued expenses and other current liabilities, both periods, and other liabilities as of January 1, 2011, on the Consolidated Balance Sheets.

For the three months ended December 31, 2011 and January 1, 2011, in addition to these restructuring amounts, the Company had other severance obligations included within accrued expenses and other current liabilities and other liabilities on the Consolidated Balance Sheets.