Note 7. Restructuring and Asset Impairment Charges

As of March 31, 2014, the Company has executed various restructuring plans and may execute additional plans in the future to realign manufacturing capacity to prevailing global automotive production and to improve the utilization of remaining facilities. Estimates of restructuring charges are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established reserves.

Restructuring and Asset Impairment Charges

Net restructuring and asset impairment charges for each of the Company’s segments include the following (in thousands):

	Three Months Ended March 31,
	2014		2013
International	$	180	$	45
Americas		1,209		2,635
Consolidated	$	1,389	$	2,680

The following table sets forth the Company’s net restructuring and asset impairment charges by type for the periods presented (in thousands):

	Three Months Ended March 31,
	2014		2013
Employee termination costs	$	454	$	155
Other exit costs		935		1,570
Asset impairment		-		955
Total restructuring expense	$	1,389	$	2,680

The charges incurred during the three months ended March 31, 2014 and 2013 related primarily to the following actions:

2014 Actions

During the first quarter of 2014, the charges incurred in the Americas segment related to ongoing maintenance expense of facilities closed as a result of prior actions and severance charges to reduce fixed costs. The charges incurred in the International segment related to severance charges in Europe to reduce fixed costs.

2013 Actions

During the first quarter of 2013, the charges incurred in the Americas segment related to ongoing maintenance expense of facilities closed as a result of prior actions and an impairment charge on a facility the Company ceased using during the first quarter of 2013. The charges incurred in the International segment related to severance related charges in Europe to reduce fixed costs.

Restructuring Reserve

The table below summarizes the activity in the restructuring reserve by segment, reflected in accrued liabilities, for the above-mentioned actions through March 31, 2014 (in thousands):

	International		Americas		Consolidated
Balance at December 31, 2013	$	568	$	1,357	$	1,925
Payments		(206)		(94)		(300)
Increase		180		274		454
Balance at March 31, 2014	$	542	$	1,537	$	2,079

Except as disclosed in the table above, the Company does not anticipate incurring additional material cash charges associated with the actions described above. The increase in the restructuring reserve set forth in the above table does not agree with the net restructuring charges for the period, as certain items are expensed as incurred related to the actions described.

The restructuring reserve increased during the first quarter of 2014, reflecting primarily severance accruals, offset partially by severance payments made related to prior accruals. The majority of the $2.1 million restructuring reserve accrued as of March 31, 2014, is expected to be paid in 2014.

During the three months ended March 31, 2014, the Company incurred payments related to prior accruals in Europe of $0.2 million and North America of $0.1 million.

Customer Reimbursed Plant Relocation

In 2013, the Company entered into an agreement with one of its customers in China, in which the customer would purchase the Company’s existing manufacturing facility, located in Changchun, China. Pursuant to the agreement, the customer would also reimburse the Company for costs incurred to construct an addition to the Company’s other manufacturing facility in Changchun, China and to reimburse the Company for certain costs related to the relocation between facilities. During the three months ended March 31, 2014, the Company received a deposit of $13.8 million for the anticipated sale of the Company’s existing manufacturing facility. The Company will continue to occupy and conduct manufacturing at the facility until it moves to the new facility. Pursuant to the agreement, title to the facility will not transfer between parties until the Company vacates the facility and the land transfer is approved by the Chinese government. Accordingly, the sale of the facility, along with any gain or loss, will not be recorded until these actions occur, which is expected to be in the third quarter of 2014.