Other Expense

Other expense consists of:



	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2016			2015			2016			2015
Restructuring and related charges:
Severance and post-employment benefits	$	1.4		$	—		$	7.8		$	—
Asset-related charges	0.9			—			15.9			—
Total restructuring and related charges	2.3			—			23.7			—
Pension settlement charge	—			49.0			—			49.0
Executive retirement and related costs	—			—			—			10.9
Venezuela currency devaluation	—			—			2.7			—
Development income	(0.4		)	(0.3		)	(1.2		)	(1.1		)
Contingent consideration costs	—			0.5			1.9			0.8
Other items	0.6			(0.5		)	2.0			(1.5		)
Total other expense	$	2.5		$	48.7		$	29.1		$	58.1

Restructuring and Related Charges

On February 15, 2016, our Board of Directors approved a restructuring plan designed to repurpose several of our production facilities in support of growing high-value proprietary products and to realign operational and commercial activities to meet the needs of our new market-focused commercial organization.

We expect to incur total restructuring and related charges of $25.0 million to $28.0 million under this plan, which consists of approximately $8.0 million in severance charges for personnel reductions and $17.0 million to $20.0 million in non-cash asset write-downs. During the three months ended September 30, 2016, we recorded $2.3 million in restructuring and related charges, consisting of $1.4 million for severance charges and $0.9 million for a non-cash asset write-down associated with the discontinued use of certain equipment. During the nine months ended September 30, 2016, we incurred $23.7 million in restructuring and related charges, consisting of $7.8 million for severance charges, $10.0 million for a non-cash asset write-down associated with the discontinued use of a trademark, and $5.9 million for non-cash asset write-downs associated with the discontinued use of a patent and certain equipment. The balance of the charges related to this plan will be recognized as incurred during the remainder of 2016 and in 2017.

The following table presents activity related to our restructuring obligations:



($ in millions)	Severance and benefits			Asset-related charges			Total
Balance, December 31, 2015	$	—		$	—		$	—
Charges	7.8			15.9			23.7
Cash payments	(1.6		)	—			(1.6		)
Non-cash asset write-downs	—			(15.9		)	(15.9		)
Balance, September 30, 2016	$	6.2		$	—		$	6.2

Other Items

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge in connection with our purchase of a group annuity contract from MetLife. Please refer to Note 10, Benefit Plans, for additional details regarding this purchase.

During the nine months ended September 30, 2015, we recorded a $10.9 million charge for executive retirement and related costs, including $2.4 million for a long-term incentive plan award for our previous Chief Executive Officer (“CEO”), $8.0 million for the revaluation of modified outstanding awards to provide for continued vesting for our previous CEO and Senior Vice President of Human Resources in conjunction with their retirement, and $0.5 million for other costs, including relocation and legal fees.

On February 17, 2016, the Venezuelan government announced a devaluation of the Bolivar, from the previously-prevailing official exchange rate of 6.3 Bolivars to USD to 10.0 Bolivars to USD, and streamlined the previous three-tiered currency exchange mechanism into a dual currency exchange mechanism. As a result, during the nine months ended September 30, 2016, we recorded a $2.7 million charge. After the remeasurement, as of September 30, 2016, we had $3.9 million in net monetary assets denominated in Venezuelan Bolivars, including $2.9 million in cash and cash equivalents, and $1.4 million in non-monetary assets. If there are further devaluations of the Bolivar or other changes in the currency exchange mechanisms in Venezuela in the future, a pre-tax charge of up to $6.0 million could be required. We will continue to actively monitor the political and economic developments in Venezuela.

In addition, during the three and nine months ended September 30, 2016, we recognized development income of $0.4 million and $1.2 million, respectively, within our Proprietary Products segment, 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. During the three and nine months ended September 30, 2015, we recognized development income of $0.3 million and $1.1 million, respectively. As of September 30, 2016, there was $14.8 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $13.3 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.

Contingent consideration costs represent changes in the fair value of the SmartDose contingent consideration. Please refer to Note 8, Fair Value Measurements, for additional details.

Other items consist of foreign exchange transaction gains and losses, gains and losses on the sale of fixed assets, and miscellaneous income and charges.