Other Expense

Other expense consists of:



	Three Months Ended March 31,
($ in millions)	2017			2016
Restructuring and related charges:
Severance and post-employment benefits	$	—		$	7.9
Asset-related charges	—			15.0
Total restructuring and related charges	—			22.9
Venezuela currency devaluation	—			2.7
Development income	(0.4		)	(0.4		)
Contingent consideration costs	0.3			0.2
Other items	1.0			0.4
Total other expense	$	0.9		$	25.8

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 the three months ended March 31, 2016, we incurred $22.9 million in restructuring and related charges, consisting of $7.9 million for severance charges, $10.0 million for a non-cash asset write-down associated with the discontinued use of a trademark, and $5.0 million for non-cash asset write-downs associated with the discontinued use of a patent and certain equipment.

During the year ended December 31, 2016, we incurred $26.4 million in restructuring and related charges, 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 balance of the charges related to this plan will be recognized as incurred in 2017.

The following table presents activity related to our restructuring obligations:



($ in millions)	Severance and benefits			Asset-related charges		Other charges		Total
Balance, December 31, 2016	$	5.9		$	—	$	—	$	5.9
Charges	—			—		—		—
Cash payments	(1.1		)	—		—		(1.1		)
Non-cash asset write-downs	—			—		—		—
Balance, March 31, 2017	$	4.8		$	—	$	—	$	4.8

Other Items

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 three months ended March 31, 2016, we recorded a $2.7 million charge. 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 $15.0 million, or $0.12 to $0.15 per diluted share, for the potential deconsolidation of our Venezuelan subsidiary, could be required. We will continue to actively monitor the political and economic developments in Venezuela, particularly as we have recently experienced reduced access to USD controlled by the Venezuelan government.

In addition, during both the three months ended March 31, 2017 and 2016, we recognized development income of $0.4 million within Proprietary Products, 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 March 31, 2017, there was $14.0 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $12.5 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.