Other Expense (Income)

Other expense (income) consisted of:



($ in millions)	2016			2015			2014
Restructuring and related charges:
Severance and post-employment benefits	$	8.9		$	—		$	—
Asset-related charges	17.3			—			—
Other charges	0.2			—			—
Total restructuring and related charges	$	26.4		$	—		$	—
Pension settlement charge	—			50.4			—
Pension curtailment gain	(2.1		)	—			—
Executive retirement and related costs	—			10.9			—
Venezuela currency devaluation	2.7			—			—
License costs	—			—			1.2
Development income	(1.5		)	(1.5		)	(1.6		)
Contingent consideration costs	2.3			1.1			1.0
Other items	(0.1		)	(0.8		)	(0.8		)
Total other expense (income)	$	27.7		$	60.1		$	(0.2	)

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.

During 2016, we incurred $26.4 million in restructuring and related charges in connection with this plan, consisting of $8.9 million for severance charges, $10.0 million for a non-cash asset write-down associated with the discontinued use of a trademark, $7.3 million for non-cash asset write-downs associated with the discontinued use of a patent and certain equipment, and $0.2 million for other charges.

The following table presents activity related to our restructuring obligations:



($ in millions)	Severance and benefits			Asset-related charges			Other charges			Total
Balance, December 31, 2015	$	—		$	—		$	—		$	—
Charges	8.9			17.3			0.2			26.4
Cash payments	(3.0		)	—			—			(3.0		)
Non-cash asset write-downs	—			(17.3		)	(0.2		)	(17.5		)
Balance, December 31, 2016	$	5.9		$	—		$	—		$	5.9

Other Items

During 2015, we recorded a $50.4 million pension settlement charge, of which $47.0 million related to our purchase of a group annuity contract from MetLife and $3.4 million related to lump-sum payouts made to terminated vested participants of our U.S. qualified pension plan. Please refer to Note 13, Benefit Plans, for additional details.

During 2016, we recorded a pension curtailment gain of $2.1 million in connection with our decision to freeze both our U.S. qualified and non-qualified defined benefit pension plans as of January 1, 2019.

In addition, during 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 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 2016, we recorded a $2.7 million charge. After the remeasurement, as of December 31, 2016, we had $1.8 million in net monetary assets denominated in Venezuelan Bolivars, including $0.7 million in cash and cash equivalents, and $4.5 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 $6.3 million could be required. We will continue to actively monitor the political and economic developments in Venezuela.

During 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

Development income of $1.5 million was recognized within Proprietary Products during 2016, related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of the SmartDose technology platform within a specific therapeutic area. As of December 31, 2016, there was $14.4 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $12.9 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 2015 and 2014, we recorded development income of $1.5 million and $1.6 million, respectively, within Proprietary Products, of which $1.5 million for each year related to the nonrefundable customer payment described above.

Contingent consideration costs represent changes in the fair value of the SmartDose contingent consideration. Please refer to Note 10, 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.