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Other (Income) Expense, Net
12 Months Ended
Dec. 31, 2016
Other (Income) Expense, Net

13. Other (Income) Expense, Net

The components of other (income) expense, net, for the following years ended December 31 are:

 

     2016     2015     2014  
(dollars in millions)                   

Interest income

   $ (1.6   $ (0.9   $ (2.0

Foreign exchange (gains) losses

     (1.8     3.8        1.7   

Litigation charges, net

     205.2        595.1        288.6   

Restructuring and productivity initiative costs

     30.4        41.5        11.8   

Acquisition-related items

     (1.3     24.7        2.3   

Gore Proceeds

     —          (210.5     —     

Gain on sale of investment

     —          —          (7.1

Other, net

     (1.5     (4.5     (4.4
  

 

 

   

 

 

   

 

 

 

Total other (income) expense, net

   $ 229.4      $ 449.2      $ 290.9   
  

 

 

   

 

 

   

 

 

 

Litigation charges, net – In 2016, the amount reflected the estimated costs for product liability matters, net of recoveries. In 2015, the amount reflected estimated costs for product liability matters, net of recoveries, litigation-related defense costs of $15.1 million in connection with the 2014 WHP Pre-Trial Orders, and certain other litigation-related charges. In 2014, the amount reflected estimated costs for product liability matters, net of recoveries, and litigation-related defense costs of $30.1 million in connection with the 2014 WHP Pre-Trial Orders. See Note 10 of the notes to consolidated financial statements.

Restructuring and productivity initiative costs – In 2016, 2015 and 2014, the amounts primarily reflected costs incurred in connection with productivity initiatives to optimize and streamline certain manufacturing and administrative functions to better align resources to the company’s business strategies. Key activities under these initiatives may include systems enhancements, the implementation of shared services centers designed to standardize and centralize certain functions or the outsourcing of certain services. Productivity initiative costs include consulting costs, primarily related to program creation and management, employee separation costs under the company’s existing severance program, and other related costs. In 2015 and 2014, employee separation costs of $10.3 million and $1.7 million, respectively, were recognized related to these initiatives. In 2015, the amount also reflected employee separation costs of $7.9 million related to the elimination of certain positions and other terminations worldwide. In 2014, the amount also reflected employee separation costs of $7.5 million primarily to improve the overall cost structure in certain of the company’s vascular businesses.

Acquisition-related items – The amounts for 2016, 2015 and 2014 consist of acquisition-related integration costs. The amounts for 2016 and 2015 also include acquisition-related purchase accounting adjustments. See Note 2 of the notes to consolidated financial statements.

Gore Proceeds – In 2015, Gore paid the company $210.5 million, representing the total amount of the enhanced damages awarded by the U.S. District Court for the District of Arizona due to Gore’s willfulness in connection with the company’s lawsuit against Gore for infringing Bard’s patent number 6,436,135 and an audit adjustment related to the payment of royalties through September 30, 2013 (the “Gore Proceeds”).