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Other Income - Net
 12 Months Ended
Dec. 31, 2018
Other Income and Expenses [Abstract]  
Other Income - Net
Other Income - Net

The Company derives income from items that are not considered operating activities. Income from these items is reported net of related expense. All components of net periodic pension and postretirement benefit costs, excluding service cost, are included in other income - net. Miscellaneous income (expense) may fluctuate due to timing and includes investment gains, losses and interest income as well as other non-operating activities. 

As substantially all real estate activities are focused on supporting railroad operations, beginning in first quarter 2017, all results of these activities are included in operating income. Previously, these activities were classified as operating or non-operating based on the nature of the activity. The results of these activities were not material in 2016 and were not reclassified.

Net periodic pension and postretirement benefit credit increased from 2016 to 2017 primarily due to adoption in 2017 of the spot rate approach for measuring employee benefit plan interest costs, pension contributions in 2016 and other favorable benefit plan experience. Interest income increased from 2017 to 2018 primarily as a result of higher average investment balances. Income from real estate operations were recorded as part of operating expenses during 2018 and 2017.

Other income – net consisted of the following:
 
Fiscal Years 
(Dollars in Millions)
2018
 
2017
 
2016
Net Periodic Pension and Postretirement Benefit Credit (Expense) (a)
$
38

 
$
32

 
$
(24
)
Interest Income
32

 
13

 
10

Income from Non-operating Real Estate Activities
—

 
—

 
27

Miscellaneous Income
4

 
8

 
9

Total Other Income - Net
$
74


$
53


$
22

 
 
 
 
 
 
Gross Revenue from Real Estate Operations included above
$
—

 
$
—

 
$
56


(a) Excludes the service cost component of net periodic benefit cost.