Other Income, Net (Tables)

9 Months Ended

Sep. 30, 2013

Other Income and Expenses [Abstract]

Schedule of Other Income

Other Income, Net

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Cozaar®/Hyzaar® income	$	—		$	9		$	14		$	48
Royalty income	35			21			122			84
Interest income	34			27			106			87
Equity in earnings of affiliates, excluding exchange gains/losses	28			11			14			42
Gain on sale of equity method investment	—			—			9			122
Net gain on sales of other assets	7			1			17			11
Net exchange losses1	(101		)	(130		)	(55		)	(161		)
Miscellaneous income and expenses, net 2	67			7			94			18
Other income (loss), net	$	70		$	(54	)	$	321		$	251

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 (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 $(55) net exchange loss for the nine months ended September 30, 2013, includes a $(33) exchange loss, associated with the devaluation of the Venezuelan bolivar.

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