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Other Income, Net
 9 Months Ended
Sep. 30, 2014
Other Income and Expenses [Abstract]  
Other Income, Net
Other Income, Net 
 
Three Months Ended
Nine Months Ended
 
September 30,
September 30,
 
2014
2013
2014
2013
Royalty income
$
48

$
35

$
120

$
122

Interest income
33

34

104

106

Equity in earnings of affiliates, excluding exchange gains/losses1
6

28

28

14

Gain on sale of equity method investment
—

—

—

9

Net gain on sales of businesses and other assets
29

7

440

17

Net exchange gains (losses)1
218

(101
)
13

(55
)
Cozaar®/Hyzaar® income
—

—

1

14

Miscellaneous income and expenses, net 2
23

67

76

94

Other income, net
$
357

$
70

$
782

$
321

 

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 (benefit from) income taxes on continuing operations on the company's interim Consolidated Income Statements. Exchange gains (losses) related to earnings of affiliates was $3 and $1 for the three and nine months ended September 30, 2014, respectively. Exchange gains (losses) related to earnings of affiliates was $(1) and $4 for the three and nine months ended September 30, 2013, respectively. The $13 net exchange gain for the nine months ended September 30, 2014, includes $(58), $(46) and $(14) exchange losses, associated with the devaluation of the Venezuelan bolivar, Ukrainian hryvnia, and Argentinian peso, respectively. The $(55) net exchange losses 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, includes interest items, certain insurance recoveries and litigation settlements, and other items.