11. Restructuring

On October 29, 2007, the Company announced restructuring initiatives to improve manufacturing efficiency and cost position by ceasing manufacturing operations at its Sarasota, Florida (Control Devices reportable segment), and Mitcheldean, United Kingdom (Electronics reportable segment), locations. During 2008 and 2009, in response to the depressed conditions in the North American and European commercial and automotive vehicle markets, the Company continued and expanded the restructuring initiatives in the Control Devices and Electronics reportable segments. While the initiatives were completed in 2009 in regards to the Control Devices reportable segment, in 2010 the Company continued restructuring initiatives within the Electronics reportable segment and recorded amounts related to its cancelled lease in Mitcheldean, United Kingdom. During 2011, the Company continued negotiations in regards to this lease and recorded additional amounts to reflect the expected costs to be paid under the currently proposed settlement agreement. In connection with the restructuring initiatives, the Company recorded a restructuring charge of $951, $304 and $3,668 in the Company’s consolidated statements of operations as part of selling, general and administrative for the years ended December 31, 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, the only remaining restructuring liability relates to the cancelled lease in Mitcheldean, United Kingdom, for which the Company has accrued $1,920 and $1,117, respectively, on the consolidated balance sheets as a component of other long-term liabilities.

The expenses related to the restructuring activities that belong to the Electronics reportable segment include the following:

				Contract
	Severance			termination			Other exit
	costs			costs			costs			Total
Total expected restructuing charges	$	5,250		$	2,264		$	2,401		$	9,915
Accrued balance at January 1, 2009	$	531		$	1,305		$	180		$	2,016
2009 charge to expense		2,237			374			-			2,611
Foreign currency translation effect		-			400			-			400
Cash payments		(2,641	)		(656	)		(180	)		(3,477	)
Accrued balance at December 31, 2009		127			1,423			-			1,550
2010 charge to expense		183			121			-			304
Foreign currency translation effect		-			64			-			64
Cash payments		(310	)		(491	)		-			(801	)
Accrued balance at December 31, 2010		-			1,117			-			1,117
2011 charge to expense		-			951			-			951
Foreign currency translation effect		-			(148	)		-			(148	)
Cash payments		-			-			-			-
Accrued balance at December 31, 2011	$	-		$	1,920		$	-		$	1,920

The expenses related to restructuring charges that belong to the Control Devices reportable segment include the following:

	Severance			Other exit
	costs			costs			Total
Total expected restructuing charges	$	3,555		$	6,348		$	9,903
Accrued balance at January 1, 2009	$	1,468		$	400		$	1,868
2009 charge to expense		1,034			23			1,057
Cash payments		(2,463	)		(164	)		(2,627	)
Accrued balance at December 31, 2009		39			259			298
Cash payments		(39	)		(259	)		(298	)
Accrued balance at December 31, 2010	$	-		$	-		$	-

All restructuring charges, except for asset-related charges, result in cash outflows. Severance costs relate to a reduction in workforce. Contract termination costs represent costs associated with long-term lease obligations that were cancelled as part of the restructuring initiatives. Other exit costs include premium direct labor, inventory and equipment move costs, relocation expense, increased inventory carrying cost and miscellaneous expenditures associated with exiting business activities. No fixed-asset impairment charges were incurred because assets were transferred to other locations for continued production.