We believe that continuing our investments in R&D is critical to attaining
our strategic objectives. We plan to continue to invest in R&D and new products
that will further differentiate us in the marketplace and expect our investment
in dollar terms to increase in future quarters.
Selling, General and Administrative ("SG&A")
SG&A expense increased
$2.3 million, or 0.5%, in fiscal 2013 compared to fiscal 2012. This increase was primarily driven by a $15.3 millionincrease in labor and benefits expense primarily due to higher headcount coupled with higher compensation. This was partially offset by reductions in legal expenses primarily due to the absence in fiscal 2013 of a $7.9 millionlegal expense in fiscal 2012 related to a litigation settlement and $4.7 millionof net decreases in various other expenses. SG&A expense in fiscal 2012 decreased 1.7%, or $7.5 million, to $427.0 millionfrom $434.5 millionin fiscal 2011. The decrease in SG&A expense was primarily due to decreased variable incentive pay and lower sales commissions due to a decrease in net revenue and operating income, partially offset by increased investment in information technology and a litigation settlement. Please refer to "Note 17. Commitment and Contingencies" for more information on legal proceedings. We intend to continue to focus on reducing our SG&A expense as a percentage of revenue. However, we have in the recent past experienced, and may continue to experience in the future, certain non-core expenses, such as mergers and acquisitions-related expenses and litigation expenses, which could increase our SG&A expenses and potentially impact our profitability expectations in any particular quarter.
Amortization of Intangibles
Amortization of intangibles for fiscal 2013 decreased
Amortization of intangibles for fiscal 2012 decreased
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Restructuring and Related Charges
We continue to seek to reduce costs through targeted restructuring efforts intended to consolidate and rationalize business functions and related locations based on core competencies and cost efficiencies, to align the business in response to the market conditions. We estimate annualized cost savings of approximately
$23.2 millionexcluding any one-time charge as a result of the restructuring activities initiated in the past year. See "Note 11. Restructuring and Related Charges" for more detail. As of June 29, 2013, our total restructuring accrual was $16.5 million. During the twelve months ended June 29, 2013, we recorded $19.0 millionin restructuring and related charges. The charges are a combination of new and previously announced restructuring plans and are primarily the result of the following: º (i) º During the fourth quarter of fiscal 2013, management approved a plan to re-align certain functions related to the CCOP segment to drive organizational efficiency and enhance the product line marketing leadership. As a result, a restructuring charge of $1.2 millionwas recorded for severance and employee benefits for 28 employees primarily in manufacturing, R&D and SG&A functions located in the North Americaand Asia. As of June 29, 2013, 21 employees have been terminated and payments related to remaining severance and benefits accrual are expected to be paid by the end of the second quarter of fiscal 2014.