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Other Income, Net
 12 Months Ended
Dec. 31, 2015
Other Income and Expenses [Abstract]  
Other Income, Net
OTHER INCOME, NET
 
2015
2014
2013
Royalty income
$
138

$
156

$
163

Interest income
129

129

136

Equity in earnings (loss) of affiliates, net
49

(36
)
22

Gain on sale of equity method investment
—

—

9

Net gains on sales of businesses and other assets
92

710

21

Net exchange gains (losses)1
30

196

(101
)
Cozaar®/Hyzaar® income
—

—

14

Miscellaneous income and expenses, net2
259

122

107

Other income, net
$
697

$
1,277

$
371


1. 
The $30 net exchange gain for the year ended December 31, 2015, includes $(58) and $(40) exchange loss associated with the devaluation of the Ukrainian hryvnia and the Argentina peso, respectively. The $196 net exchange gain for the year ended December 31, 2014, includes a $(58), $(46), and $(14) exchange losses, associated with the devaluation of the Venezuelan bolivar, Ukranian hryvnia, and Argentinian peso, respectively. The $(101) 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, certain insurance recoveries, litigation settlements and other items.

The following table summarizes the impacts of the company's foreign currency hedging program on the company's results from operations for the years ended December 31, 2015, 2014 and 2013. 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 hedging program gains are largely taxable in the U.S., whereas the offsetting exchange losses on the re-measurement of the net monetary asset positions are often not tax deductible in their local jurisdictions. 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.
 
2015
2014
2013
Subsidiary/Affiliate Monetary Position Gain (Loss)
 
 
 
Pretax exchange loss1
$
(404
)
$
(410
)
$
(136
)
Local tax (expenses) benefits
(61
)
(207
)
$
47

Net after-tax impact from subsidiary exchange loss
$
(465
)
$
(617
)
$
(89
)
 
 
 
 
Hedging Program Gain (Loss)
 
 
 
Pretax exchange gain
$
434

$
607

$
35

Tax expenses
(157
)
(212
)
$
(12
)
Net after-tax impact from hedging program exchange gain
$
277

$
395

$
23

 
 
 
 
Total Exchange Gain (Loss)
 
 
 
Pretax exchange gain (loss)
$
30

$
196

$
(101
)
Tax (expenses) benefits
(218
)
(419
)
$
35

Net after-tax exchange loss
$
(188
)
$
(223
)
$
(66
)
1. Excludes equity affiliates.