Note 16 - Other Income (Expense), Net

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Other Income and Other Expense Disclosure [Text Block]

Note 16. Other Income (Expense), Net 

	Three Months Ended
	March 31,
	2020			2019
Non-service cost components of pension and OPEB costs	$	(2	)	$	(6	)
Government grants and incentives		4			3
Foreign exchange gain (loss)		5			(11	)
Strategic transaction expenses		(6	)		(13	)
Non-income tax legal judgment					6
Other, net		3			8
Other income (expense), net	$	4		$	(13	)

Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above. Foreign exchange gains and losses on intercompany loans that are permanently invested are reported in OCI. Foreign exchange loss in 2019 included a loss on the undesignated Swiss franc notional deal contingent forward related to the ODS acquisition. See Note 12 for additional information.

Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs. Strategic transaction expenses in 2020 were primarily attributable to the acquisitions of ODS and Nordresa. Strategic transaction expenses in 2019 were primarily attributable to the acquisition of ODS. See Note 2 for additional information.

During the first quarter of 2019, we won a legal judgment regarding the methodology used to calculate PIS/COFINS tax in Brazil.