Other Expense

Other expense consists of:



	Three Months Ended March 31,
($ in millions)	2018			2017
Restructuring and related charges:
Severance and post-employment benefits	$	2.0		$	—
Asset-related charges	0.1			—
Other charges	1.2			—
Total restructuring and related charges	3.3			—
Development and licensing income	(0.2		)	(0.4		)
Contingent consideration	0.3			0.3
Other items	(0.3		)	1.0
Total other expense	$	3.1		$	0.9

Restructuring and Related Charges

In February 2018, our Board of Directors approved a restructuring plan designed to realign our manufacturing capacity with demand. These changes are expected to be implemented over the following twelve to twenty-four

months. The plan will require restructuring and related charges in the range of $8.0 million to $13.0 million and capital expenditures in the range of $9.0 million to $14.0 million. Once fully completed, we expect that the plan will provide us with annualized savings in the range of $17.0 million to $22.0 million.

During the three months ended March 31, 2018, we recorded $3.3 million in restructuring and related charges associated with this plan, consisting of $2.0 million for severance charges, $0.1 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $1.2 million for other non-cash charges.

The following table presents activity related to our restructuring obligations related to the 2018 restructuring plan:



($ in millions)	Severance and benefits		Asset-related charges			Other charges			Total
Balance, December 31, 2017	$	—	$	—		$	—		$	—
Charges	2.0		0.1			1.2			3.3
Cash payments	—		—			—			—
Non-cash asset write-downs	—		(0.1		)	(1.2		)	(1.3		)
Balance, March 31, 2018	$	2.0	$	—		$	—		$	2.0

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. Please refer to Note 14, Other Expense, to the consolidated financial statements in our 2017 Annual Report for further discussion of the 2016 Plan. Our remaining restructuring obligations related to the 2016 Plan as of March 31, 2018 were $1.8 million.

Other Items

During the three months ended March 31, 2018 and 2017, we recorded development income of $0.2 million and $0.4 million, respectively, 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. Please refer to Note 3, Revenue, for additional information on this nonrefundable customer payment.

Contingent consideration represents changes in the fair value of the SmartDose contingent consideration. Please refer to Note 9, 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.