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Other Expense (Income)
9 Months Ended
Sep. 30, 2014
Other Income and Expenses [Abstract]  
Other Expense (Income)
Other expense (income) consists of:

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
($ in millions)
2014
 
2013
 
2014
 
2013
Development income
$
(0.3
)
 
$
(0.4
)
 
$
(1.2
)
 
$
(1.2
)
Acquisition-related contingencies
0.3

 
0.3

 
1.0

 
0.5

License costs
1.2

 

 
1.2

 

Foreign exchange and other
(0.9
)
 
0.2

 
0.3

 
0.2

 
$
0.3

 
$
0.1

 
$
1.3

 
$
(0.5
)


During the three and nine months ended September 30, 2014, we recognized development income of $0.3 million and $1.2 million, respectively, within our Pharmaceutical Delivery Systems segment ("Delivery Systems"), most of which related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of SmartDose within a specific therapeutic area. As of September 30, 2014, there was $17.8 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $16.3 million was included in other long-term liabilities. The unearned income is being recognized as development income on a straight-line basis over the remaining term of the agreement. The agreement does not include a future minimum purchase commitment from the customer. During the three and nine months ended September 30, 2013, we recorded development income of $0.4 million and $1.2 million, respectively, within Delivery Systems, of which $0.4 million and 0.7 million related to the nonrefundable customer payment described above.

During the three and nine months ended September 30, 2014, the SmartDose contingent consideration increased by $0.3 million and $1.0 million, respectively, due to the time value of money and changes made to sales projections. The SmartDose contingent consideration increased by $0.3 million and $0.5 million during the three and nine months ended September 30, 2013, respectively, due to the same reasons mentioned above. These adjustments are included within Delivery Systems' results.

In addition, during the third quarter of 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.