Originally Posted by Dutchrudder
The 1.3 million is part of what he restructured in 2011. The team converted 3.9 million of his 2011 salary into signing bonus, thus prorating it over 3 years. That 1.3 million in 2013 has already been paid to him and is guaranteed to hit the cap next year regardless of what happens to him. The only money on his deal that can be adjusted is the 6 million in salary, which is not guaranteed.
This was all part of the effort to fit JJo and Manning into the cap.
So then if the Texans cut Smith, they will incur $3.8M in dead money, yet still has very little room to find a replacement ($6M), but with a total of $9.8M in cap charge just the same.
He most likely comes back for at least another year to finish out his contract