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Other (Income)/Deductions - Net (Tables)
 3 Months Ended
Mar. 29, 2015
Other Income and Expenses [Abstract]  
Schedule of Other (Income)/Deductions-Net
The following table provides components of Other (income)/deductions––net:
 
 
Three Months Ended
(MILLIONS OF DOLLARS)
 
March 29,
2015

 
March 30,
2014

Interest income
 
$
(93
)
 
$
(92
)
Interest expense(a)
 
309

 
321

Net interest expense
 
216

 
229

Royalty-related income(b)
 
(222
)
 
(248
)
Certain legal matters, net(c)
 
—

 
694

Net gains on asset disposals(d)
 
(175
)
 
(181
)
Certain asset impairments(e)
 
—

 
115

Business and legal entity alignment costs(f)
 
101

 
29

Other, net
 
34

 
(15
)
Other (income)/deductions––net
 
$
(46
)
 
$
623

(a) 
Interest expense decreased in the first quarter of 2015, primarily due to lower interest rates on new fixed rate debt added in the second quarter of 2014 and the benefit of the effective conversion of some fixed-rate liabilities to floating-rate liabilities.
(b) 
Royalty-related income decreased in the first quarter of 2015, primarily due to a decrease in royalties earned on Amgen Inc.'s sales of Enbrel in the U.S. and Canada due to a decrease in the royalty rate per the terms of the collaboration agreement.
(c) 
In the first quarter of 2014, primarily includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $50 million for an Effexor-related matter.
(d) 
In the first quarter of 2015, primarily includes gains on sales/out-licensing of product and compound rights (approximately $45 million) and gains on sales of investments in equity securities (approximately $120 million). In the first quarter of 2014, primarily includes gains on sales/out-licensing of product and compound rights (approximately $70 million) and gains on sales of investments in equity securities (approximately $95 million).
(e) 
In the first quarter of 2014, includes an intangible asset impairment charge of $114 million, virtually all of which relates to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. The intangible asset impairment charge for the first quarter of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program.
(f) 
In the first quarter of 2015 and 2014, represents expenses for planning and implementing changes to our infrastructure to align our operations and reporting for our business segments established in 2014.