Other Income, Net

3 Months Ended

Mar. 31, 2015

Other Income and Expenses [Abstract]

Other Income, Net

Other Income, Net

	Three Months Ended
	March 31,
	2015		2014
Royalty income	$	39	$	39
Interest income	25		28
Equity in earnings of affiliates, net	9		13
Net gain on sales of other assets	6		7
Net exchange gains (losses)1	64		(96		)
Miscellaneous income and expenses, net 2	55		26
Other income, net	$	198	$	17

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 the company's interim Consolidated Income Statements. The increase in pre-tax exchange gains over prior year was driven by gains on foreign currency contracts due to strengthening of the USD versus global currencies partially offset by losses on the related foreign currency-denominated monetary assets and liabilities. The $64 net exchange gain for the three months ended March 31, 2015, includes a $(40) pre-tax exchange loss, $(38) after-tax, associated with the devaluation of the Ukrainian hryvnia. The $(96) net exchange loss for the three months ended March 31, 2014, includes a $(39) pre-tax exchange loss, $(27) after-tax, associated with the devaluation of the Ukrainian hryvnia.

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