SPECIAL CHARGES, NET

12 Months Ended

Dec. 31, 2015

9.	SPECIAL CHARGES, NET

The Company’s NATG segment incurred special charges of approximately $27.2 million for the year, of which $25.6 million is included in continuing operations, $1.6 million is included in discontinued operations. Charges incurred included approximately $29.9 million for lease termination costs for the retail stores and warehouse closures, $5.5 million in workforce reductions, $3.3 million in consulting expenses and net asset impairment charges of $0.1 million. These charges were offset by approximately $14.1 million, net from the sale of the NATG business and Circuit City name and trademarks. Amounts related to the exit from NATG operations that are unpaid at December 31, 2015 are recorded in Accounts payable, Accrued expenses and other current liabilities and Other liabilities in the accompanying Consolidated Balance Sheets. The Company expects that additional NATG wind-down costs incurred during 2016 or later will aggregate between $15 and $25 million which will be presented in discontinued operations.

Included in the charges noted above is $2.5 million for the year of professional costs, net of $1.0 million from an insurance recovery settlement related to the investigation, settlement, prosecution, and restitution proceedings related to the former NATG executives; and professional costs related to the investigation conducted at the request of the US Attorney for the Southern District of Florida.

EMEA incurred special charges of approximately $0.7 million in 2015 related to the termination of the Chief Executive of EMEA. Amounts related to this action that are unpaid at December 31, 2015 are recorded in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets. EMEA recorded $0.1 million benefit from adjustments to previously accrued workforce reductions and personnel costs.

The following table details the associated liabilities incurred related to the Technology Products segments special charges (in millions):

	EMEA- Workforce Reductions and Personnel Costs			NATG- Workforce Reductions			NATG- Other Exit Costs			Total
Balance, January 1, 2015	$	4.7			-		$	-		$	4.7
Charged to expense		0.4			5.5			33.0			38.9
Paid or otherwise settled		(4.8	)		(2.8	)		(16.7	)		(24.3	)
Balance, December 31, 2015	$	0.3			2.7		$	16.3		$	19.3

The Company conducted an evaluation of its long-lived assets in certain EMEA locations (Germany, Italy, Spain and Sweden) and, as a result of negative cash flows in 2015 and a forecast for continued cash use, concluded that those assets were impaired and as a result, an impairment charge of approximately $0.7 million was recorded to adjust the long-lived assets to fair market value.

IPG incurred special charges of approximately $1.0 million during 2015. In the fourth quarter, IPG recorded $0.6 million for lease termination costs related to one of their leased facilities. In the first quarter of 2015, IPG recorded $0.4 million of special charges related to severance costs associated with the integration of PEG. The unpaid severance cost and unpaid lease costs are included in the Condensed Consolidated Balance Sheet within Accrued expenses and other current liabilities and Other liabilities.