3. SPECIAL (GAINS) CHARGES
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Years Ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
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2013 | 2012 | 2011 | |||||||
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(in millions) |
|||||||||
|
Settlements and litigation |
$ | (83.6 | ) | $ | — | $ | 3.3 | |||
|
Realignment expenses |
10.4 | 9.0 | 5.5 | |||||||
|
IPR&D impairment |
5.9 | — | — | |||||||
|
Licensing of intellectual property |
— | 7.0 | — | |||||||
|
European receivables reserve |
— | — | 12.8 | |||||||
| | | | | | | | | | | |
|
Total special (gains) charges |
$ | (67.3 | ) | $ | 16.0 | $ | 21.6 | |||
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Settlements and Litigation
In February 2013, the Company received $83.6 million from Medtronic, Inc. in satisfaction of the April 2010 jury award of damages for infringement of the U.S. Andersen transcatheter heart valve patent, including accrued interest. For further information, see Note 16.
In December 2011, the Company recorded a $3.3 million charge related to a litigation settlement.
Realignment Expenses
In December 2013, the Company recorded a $10.4 million charge related primarily to severance expenses associated with a global workforce realignment impacting 118 employees. As of December 31, 2013, the Company's remaining severance obligations of $9.2 million are expected to be substantially paid by the end of 2014.
In December 2012, the Company recorded a $9.0 million charge related primarily to severance expenses associated with a global workforce realignment impacting 92 employees. As of December 31, 2013, payments related to the realignment were substantially complete.
In December 2011, the Company recorded a $5.5 million charge related primarily to severance expenses associated with a global workforce realignment impacting 49 employees. As of December 31, 2013, payments related to the realignment were complete.
IPR&D Impairment
In December 2013, the Company recorded a $5.9 million write-off of IPR&D assets acquired from Embrella Cardiovascular, Inc. ("Embrella"). For further information, see Note 5.
Licensing of Intellectual Property
In April 2012, the Company obtained an exclusive license to a suturing device for minimally invasive surgery applications. The intellectual property is under development and there is uncertainty as to whether the product will ultimately be approved. The Company recorded a charge of $2.0 million related to the upfront licensing and royalty fees.
In June 2012, the Company obtained a co-exclusive sublicense to intellectual property related to processing tissue and implanting cardiovascular valves. The intellectual property is under development and there is uncertainty as to whether the product will ultimately be approved. The Company recorded a charge of $5.0 million related to the upfront licensing fee.
European Receivables Reserve
During 2011, the Company recorded a $12.8 million charge to reflect the increased risk associated with its southern European receivables, primarily Greece.