Other Income, Net

12 Months Ended

Dec. 31, 2011

Other Income Disclosure, Nonoperating [Abstract]

Other Income, Net

OTHER INCOME, NET

	2011			2010			2009
Cozaar®/Hyzaar® income	$	282		$	483		$	1,032
Royalty income	194			146			127
Interest income	110			93			91
Equity in earnings of affiliates, excluding exchange gains/losses1	191			179			86
Net gains on sales of assets	90			127			63
Net exchange losses1	(163		)	(13		)	(205		)
Miscellaneous income and expenses, net2	54			213			25
	$	758		$	1,228		$	1,219

^1.  The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The net pre-tax exchange gains and losses are recorded in other income, net and the related tax impact is recorded in provision for income taxes on the Consolidated Income Statements. Exchange gains (losses) related to earnings of affiliates was $1, $(2) and $13 for 2011, 2010 and 2009, respectively.

^2.  Miscellaneous income and expenses, net, generally includes interest items, insurance recoveries, litigation settlements and other items.