Asset Impairment, Restructuring, and Other Special Charges

The components of the charges included in asset impairment, restructuring, and other special charges in our consolidated statements of operations are described below.



	2017		2016			2015
Severance:
Human pharmaceutical products	$	601.0	$	85.9		$	81.5
Animal health products	96.4		40.8			59.5
Total severance	697.4		126.7			141.0
Pension and post-retirement medical charges associated with U.S. early retirement program (see Note 14):
Human pharmaceutical products	446.7		—			—
Animal health products	67.0		—			—
Total pension and post-retirement medical charges associated with U.S. early retirement program	513.7		—			—
Asset impairment (gains from facility sales) and other special charges:
Human pharmaceutical products	81.7		(13.0		)	24.6
Animal health products	380.8		268.8			202.1
Total asset impairment and other special charges	462.5		255.8			226.7
Total asset impairment, restructuring, and other special charges	$	1,673.6	$	382.5		$	367.7

Severance costs recognized during the years ended December 31, 2017, 2016 and 2015 were incurred as a result of actions taken to reduce our cost structure, including severance costs recognized in 2017 associated with the U.S. voluntary early retirement program, as well as the integration of Novartis AH. During 2017, severance costs recognized in the U.S. and outside the U.S. were $412.5 million and $284.9 million, respectively. In relation to these charges, we paid approximately $300 million of the U.S. charges through January 31, 2018, and paid approximately half of the charges incurred outside the U.S. in 2017. Substantially all of the severance costs incurred during the year ended December 31, 2017 are expected to be paid in the next 12 months.

Asset impairment and other special charges related to animal health products recognized during the year ended December 31, 2017 resulted primarily from asset impairments related to lower projected revenue for Posilac^® (rbST). The assets associated with Posilac were written down to their fair values, which were determined based upon a discounted cash flow valuation. Impairment charges were recorded for the associated fixed assets and intangible asset of $151.5 million and $50.0 million, respectively. We are exploring strategic options for Posilac, including seeking a buyer for the molecule and its Augusta, Georgia manufacturing site. The remaining book value of assets associated with Posilac subsequent to the impairment charge is not material. In addition, we incurred approximately $43.4 million of costs associated with the temporary shut down of our Puerto Rico facility following Hurricane Maria. The remaining asset impairment and other special charges recognized in 2017 were primarily related to integration costs and asset impairments due to product rationalizations and site closures resulting from our acquisition and integration of Novartis AH (refer to Note 8 for further detail relating to intangible asset impairments).

Asset impairment and other special charges recognized during the years ended December 31, 2016 and 2015 resulted primarily from integration costs and asset impairments due to product rationalization and site closures resulting from our acquisition and integration of Novartis AH, including the closure of a manufacturing facility in Ireland in 2016.