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Impairments
12 Months Ended
Dec. 31, 2015
Property, Plant and Equipment [Abstract]  
Impairments
4. Impairments

The Company evaluates long-lived assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During the fourth quarter of 2015, it was determined that the speaker and receiver product line, within the MCE business segment, lacked a future path to profitability, which included a thorough evaluation of key assumptions including selling prices, product margins, as well as future product demand and suggested that the carrying value of the product line’s assets may be impaired. Through the utilization of undiscounted future cash flows to determine the fair value of the assets, the Company concluded that the fair values of the intangible assets and fixed assets associated with the speaker and receiver product line were less than their respective carrying values at December 31, 2015. As a result, the speaker and receiver product line's intangible assets and fixed assets were written down to their fair values and Knowles incurred pre-tax impairment charges of $143.3 million and $48.2 million, respectively.

In addition, during the year ended December 31, 2015, the Company identified other asset impairments within the MCE and SC business segments of $7.6 million and $2.1 million, respectively. These impairments are a result of restructuring actions to consolidate its manufacturing footprint and other measures to further optimize operations.

The Company recorded impairments of fixed and other assets of $53.4 million, impairments of intangible assets of $144.7 million, and $3.1 million resulting from research and development charges, which were recorded within the Impairment of fixed and other assets, Impairment of intangible assets, and Research and development expenses line items within Knowles’ Consolidated Statements of Earnings, respectively.
 
During the years ended December 31, 2014 and 2013, certain fixed and other assets were written down to their fair value and Knowles incurred pre-tax impairment charges of $1.4 million and $3.6 million, respectively. The 2014 and 2013 impairment charges were in connection with restructuring actions within the MCE and SC business segments, respectively, and the impairment losses were recognized to the extent that the asset's carrying value exceeded its fair value less costs to sell. These charges were included within the Impairment of fixed and other assets line item within Knowles’ Consolidated Statements of Earnings.