Other Income, Net (Tables)

3 Months Ended

Mar. 31, 2013

Other Income and Expenses [Abstract]

Schedule of Other Income

Other Income, Net

	Three Months Ended
	March 31,
	2013			2012
Cozaar®/Hyzaar® income	$	2		$	25
Royalty income	37			40
Interest income	27			23
Equity in earnings of affiliates, excluding exchange gains/losses	(7		)	10
Net gain on sales of other assets	5			5
Net exchange gains (losses) 1	11			(81		)
Miscellaneous income and expenses, net 2	17			(8		)
Other income, net	$	92		$	14

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 continuing operations on the interim Consolidated Income Statements. The $11 net exchange gain for the three months ended March 31, 2013 includes a $36 exchange loss associated with the devaluation of the Venezuelan bolivar.

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