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 property lease in Mitcheldean, United Kingdom. During the third quarter of 2012, the Company finalized a settlement agreement to modify the terms of and the obligation associated with the property consistent with previous estimates.

As a result of the restructuring plan approved on October 29, 2007, the manufacturing facility located in Sarasota, Florida was closed in 2008. During the year ended December 31, 2011, the Company sold the facility and recognized a gain of $95 as a component of selling, general and administrative expense.

In connection with the Electronics segment restructuring initiative, the Company recorded lease related restructuring charges during the year ended December 31, 2013 and 2012 of $469 and $256, respectively, as part of selling, general and administrative expense. At December 31, 2013 and 2012, the only remaining restructuring related accrual relates to the cancelled property lease in Mitcheldean, United Kingdom, for which the Company has accrued $780 and $765, respectively, on the consolidated balance sheets of which $427 and $419, respectively, is 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
		termination costs
Accrued balance at January 1, 2011	$	1,117
2011 charge to expense		951
Foreign currency translation effect		(148)
Cash payments		-
Accrued balance at December 31, 2011		1,920
2012 charge to expense		256
Foreign currency translation effect		172
Cash payments		(1,583)
Accrued balance at December 31, 2012		765
2013 charge to expense		469
Foreign currency translation effect		24
Cash payments		(478)
Accrued balance at December 31, 2013	$	780

There were no significant restructuring expenses related to the Wiring or Control Devices reportable segments during the years ended December 31, 2013, 2012 or 2011.

In response to a change in customer demand, the PST segment incurred and paid business realignment charges of $1,646 for the year ended December 31, 2012, of which $729 was recorded in cost of goods sold with the remainder recorded in selling, general and administrative expenses. The charges consist primarily of severance costs related to workforce reductions. There were no restructuring expenses related to the PST segment during the year ended December 31, 2013.

Contract termination costs represent costs associated with long-term lease obligations that were cancelled as part of the restructuring initiatives.