XML 22 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Other Income (Expense)
 12 Months Ended
Dec. 31, 2019
Other Income and Expenses [Abstract]  
Other Income (Expense) Other Income (Expense)

Other income (expense) for the twelve months ended December 31, 2019, 2018 and 2017 consisted of the following:

In millions
 
2019
 
2018
 
2017
Gain (loss) on disposal of operations and affiliates
 
$
44

 
$
(2
)
 
$
1

Interest income
 
29

 
35

 
45

Other net periodic benefit income
 
24

 
20

 
9

Income (loss) from investments
 
15

 
9

 
16

Equity income in Wilsonart
 
—

 
—

 
—

Gain (loss) on foreign currency transactions, net
 
(10
)
 
(1
)
 
(25
)
Other, net
 
5

 
6

 
(1
)
Total other income (expense)
 
$
107

 
$
67

 
$
45



Refer to Note 2. Divestitures for further information regarding the Gain (loss) on disposal of operations and affiliates of $44 million for the twelve months ended December 31, 2019.

In the fourth quarter of 2012, the Company divested a 51% majority interest in its former Decorative Surfaces segment to certain funds managed by Clayton, Dubilier & Rice, LLC ("CD&R"). As a result of the transaction, the Company owns common units (the "Common Units") of Wilsonart International Holdings LLC ("Wilsonart") initially representing approximately 49% (on an as-converted basis) of the total outstanding equity. CD&R owns cumulative convertible participating preferred units (the "Preferred Units") of Wilsonart representing approximately 51% (on an as-converted basis) of the total outstanding equity. The Preferred Units rank senior to the Common Units as to dividends and liquidation preference, and accrue dividends at a rate of 10% per annum. The ownership interest in Wilsonart is reported using the equity
method of accounting. The Company's proportionate share in income (loss) of Wilsonart is reported in Other income (expense) in the Statement of Income. As the Company's investment in Wilsonart is structured as a partnership for U.S. tax purposes, U.S. taxes are recorded separately from the equity investment. In 2016, the Company received a $167 million dividend distribution from Wilsonart which exceeded the Company's equity investment balance and resulted in a $54 million pre-tax gain in 2016. As a result of the dividend distribution, the equity investment balance in Wilsonart was reduced to zero and any subsequent equity investment income will not be recognized until the gain is recaptured.