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Subsequent Events
12 Months Ended
Dec. 31, 2015
Subsequent Events [Abstract]  
Subsequent Events
20. Subsequent Events

Discontinued Operations

On February 11, 2016, we announced our intention to sell the speaker and receiver product line within the MCE business segment. As a result, the Company expects to reclassify the assets, liabilities, and results of operations of the product line to discontinued operations in the first quarter of 2016. As no sale agreement has been agreed to with a buyer for this product line, proceeds from the sale are not currently estimable.

During the year ended December 31, 2015, Knowles recorded pre-tax impairment charges of $191.5 million resulting from the carrying value of the speaker and receiver product line’s net assets being greater than the fair value. See Note 4. Impairments, for additional details. The impairments were recorded within the Impairment of fixed and other assets and Impairment of intangible assets line items within the Consolidated Statements of Earnings.

As of December 31, 2015, the speaker and receiver product line had total assets and liabilities of $441.1 million and $51.8 million, respectively. For the twelve months ended December 31, 2015, the speaker and receiver product line had revenues of $235.0 million and losses before income taxes of $272.4 million.

The Company anticipates incurring incremental charges, including severance expense, as a result of actions in the first quarter of 2016. Knowles will account for these charges in 2016 in accordance with both ASC 420, Exit or Disposal Cost Obligations, for one-time employee termination benefits and ASC 712, Compensation - Nonretirement Postemployment Benefits, for ongoing benefit arrangements.

Credit Facility Amendment

On February 9, 2016, the Company entered into a third amendment to its Credit Agreement in connection with the Company’s decision to sell the speaker and receiver product line of the Company’s Mobile Consumer Electronics segment. The third amendment, among other things, amended the definition of “Consolidated EBITDA” in the Credit Agreement to allow adjustments for (i) the amount by which consolidated net income has been reduced by net losses attributable to the "Speaker and Receiver Discontinued Operations" (defined as the operations (including assets held for sale) comprising the speaker and receiver product line of the Company’s Mobile Consumer Electronics segment that have been disposed of, abandoned or discontinued or which are being held for sale) for any fiscal quarter ending on or prior to December 31, 2016 and (ii) cash costs and expenses incurred in connection with the Speaker and Receiver Discontinued Operations on or prior to March 31, 2017, with an aggregate cap on adjustments attributable to such cash costs and expenses of $45.0 million; provided that, in each case, such adjustments to Consolidated EBITDA attributable to the Speaker and Receiver Discontinued Operations shall be disregarded in calculating the leverage ratio for purposes of determining the Applicable Rate (as defined in the Credit Agreement). The third amendment also includes permanent reduction by the Company of the aggregate revolving commitment under the Credit Agreement from $350.0 million to $300.0 million.