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Long-Lived Assets
9 Months Ended
Sep. 29, 2013
Property Plant And Equipment [Abstract]  
Long-Lived Assets

Note 6: Long-Lived Assets

Disposals

During the nine months ended September 29, 2013, we sold certain real estate of the Broadcast segment for $1.0 million and recognized a $0.3 million loss on the sale. We also sold certain real estate of the Enterprise Connectivity segment for $2.1 million. There was no gain or loss on the sale.

 

In 2012, we sold our cable operations that primarily conducted business in the consumer electronics end market in China. For the nine months ended September 29, 2013, we recorded a $1.3 million gain on the sale due to a favorable resolution with the buyer of those assets regarding the closing date working capital. See further discussion below.

During the nine months ended September 30, 2012, we sold certain real estate of the Enterprise Connectivity segment for $0.8 million. There was no gain or loss recognized on the sale.

Impairment

During our fiscal third quarter of 2012, we recognized an impairment loss of $26.0 million on certain net assets of our Chinese cable operations that primarily conducted business in the consumer electronics end market. We subsequently sold the assets in our fiscal fourth quarter of 2012. The impairment loss is included in the operating results of the All Other segment. Of the total impairment loss, $10.6 million, $6.8 million, and $5.2 million related to property, plant, and equipment, customer relationships, and trademarks, respectively. We estimated the fair market value of these assets based upon the purchase price per the terms of the sale agreement. The remainder of the impairment loss was due to the accrual of estimated costs to sell, including such items as investment banker fees, legal fees, and other closing costs.

For both the three and nine months ended September 30, 2012, we recognized an impairment loss on property, plant and equipment of $2.5 million and $1.5 million in the operating results of our Industrial Connectivity and Enterprise Connectivity segments, respectively. Of the total impairment loss, approximately $1.5 million related to real estate retained by us from a German cable business we sold in 2009 and leased to the purchasers, $1.4 million related to manufacturing equipment, and $1.1 million related to other property, plant, and equipment. We estimated the fair value of these assets based upon bids received from third parties to potentially buy the assets, quoted prices in active markets or quoted prices for similar assets.

Depreciation and Amortization Expense

We recognized depreciation expense in income from continuing operations of $11.7 million and $33.5 million in the three and nine months ended September 29, 2013, respectively. Depreciation expense for the three and nine months ended September 29, 2013 included $2.2 million and $4.9 million, respectively, of accelerated depreciation expense. The accelerated depreciation expense related to a change in useful lives of certain assets as a result of our decision to consolidate manufacturing facilities as we integrate PPC. We recognized depreciation expense in income from continuing operations of $8.8 million and $26.1 million in the three and nine months ended September 30, 2012, respectively.

We recognized amortization expense in income from continuing operations related to our intangible assets of $12.3 million and $38.4 million in the three and nine months ended September 29, 2013, respectively. We recognized amortization expense in income from continuing operations related to our intangible assets of $7.6 million and $13.1 million in the three and nine months ended September 30, 2012, respectively.