Other Expense

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Other (income) expense consisted of:


($ in millions)	2019		2018		2017
Restructuring and related charges:
Severance and post-employment benefits	$	2.6	$	3.1	$	—
Asset-related charges	0.3		2.2		—
Other charges	2.0		3.8		—
Total restructuring and related charges	$	4.9	$	9.1	$	—

Argentina currency devaluation	1.0		1.1		—
Tax recovery	(4.7)		—		—
Venezuela deconsolidation	—		—		11.1

Development and licensing income	(0.9)		(0.9)		(10.6)
Contingent consideration	2.1		(2.6)		(2.4)
Other items	(4.9)		(4.8)		3.9
Total other (income) expense	$	(2.5)	$	1.9	$	2.0

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 were expected to be implemented over a period of up to twenty-four months from the date of the approval. The plan was expected to require restructuring and related charges of approximately $16.0 million. Since its approval, we recorded $13.7 million in restructuring and related charges associated with this plan. The plan is now considered complete.

During 2019, we recorded $4.9 million in restructuring and related charges associated with this plan, consisting of $2.6 million for severance charges, $0.3 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $2.0 million for other non-cash charges.

During 2018, we recorded $8.8 million in restructuring and related charges associated with this plan, consisting of $3.1 million for severance charges, $2.2 million for non-cash asset write-downs associated with the discontinued use of certain equipment, and $3.5 million for other non-cash charges.

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


($ in millions)	Severance and benefits		Asset-related charges		Other charges		Total
Balance, December 31, 2017	$	—	$	—	$	—	$	—
Charges	3.1		2.2		3.5		8.8
Cash payments	(0.8)		—		—		(0.8)
Non-cash asset write-downs	—		(2.2)		(3.5)		(5.7)
Balance, December 31, 2018	$	2.3	$	—	$	—	$	2.3
Charges	2.6		0.3		2.0		4.9
Cash payments	(3.5)		—		—		(3.5)
Non-cash asset write-downs	—		(0.3)		(2.0)		(2.3)
Balance, December 31, 2019	$	1.4	$	—	$	—	$	1.4

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 2018, we recorded $0.3 million in additional charges related to this restructuring plan. Our remaining restructuring obligations related to our 2016 restructuring plan as of December 31, 2019 were $0.1 million.

Other Items

During 2019, we recorded a charge of $1.0 million as a result of the continued devaluation of Argentina’s currency. During 2018, we recorded a charge of $1.1 million related to the classification of Argentina’s economy as highly inflationary under U.S. GAAP as of July 1, 2018.

During 2019, we recognized a tax recovery of $4.7 million related to previously-paid international excise taxes, following a favorable court ruling.

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. In 2017, as a result of the continued deterioration of conditions in Venezuela as well as our continued reduced access to USD settlement controlled by the Venezuelan government, we recorded a charge of $11.1 million related to the deconsolidation of our Venezuelan subsidiary, following our determination that we no longer met the U.S. GAAP criteria for control of that subsidiary. This charge included the derecognition of the carrying amounts of our Venezuelan subsidiary’s assets and liabilities, as well as the write-off of our investment in our Venezuelan subsidiary, related unrealized translation adjustments and the elimination of intercompany accounts. As of April 1, 2017, our consolidated financial statements exclude the results of our Venezuelan subsidiary.

During 2019, 2018 and 2017, we recorded development income of $0.9 million, $0.9 million and $1.5 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. In addition, during 2017, we recorded income of $9.1 million attributable to the reimbursement of certain costs related to a technology that we subsequently licensed to a third party. The license of technology to the third party may result in additional income in the future, contingent on commercialization of the related product.

Contingent consideration represents changes in the fair value of the SmartDose contingent consideration. Please refer to Note 12, 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. Other items primarily changed in 2019 as a result of foreign exchange transaction gains of $5.6 million in 2019 and a $1.9 million gain on the sale of fixed assets as a result of our restructuring plan, as compared to foreign exchange transaction gains of $5.5 million in 2018 and a $1.1 million gain on the sale of fixed assets as a result of our restructuring plans.