Other Income, Net

12 Months Ended

Dec. 31, 2014

Other Income and Expenses [Abstract]

Other Income, Net

OTHER INCOME, NET

	2014			2013			2012
Royalty income	$	183		$	187		$	177
Interest income	129			136			109
Equity in earnings of affiliates, excluding exchange gains/losses1	(10		)	37			99
Gain on sale of equity method investment	—			9			122
Net gains on sales of businesses and other assets	749			25			130
Net exchange gains (losses)1	135			(128		)	(215		)
Cozaar®/Hyzaar® income	—			14			54
Miscellaneous income and expenses, net2	137			130			22
Other income, net	$	1,323		$	410		$	498

^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 Consolidated Income Statements. Exchange gains (losses) related to earnings of affiliates was $0, $4 and $3 for 2014, 2013 and 2012, respectively. The $135 net exchange gain for the year ended December 31, 2014, includes $(58), $(46) and $(14) exchange losses, associated with the devaluation of the Venezuelan bolivar, Ukrainian hryvnia, and Argentinian peso, respectively. The $(128) net exchange loss for the year ended December 31, 2013, includes a $(33) exchange loss, associated with the devaluation of the Venezuelan bolivar.

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