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Other (Income)/Deductions - Net
 6 Months Ended
Jun. 28, 2015
Other Income and Expenses [Abstract]  
Other (Income)/Deductions-Net
Other (Income)/Deductions—Net
The following table provides components of Other (income)/deductions––net:
 
 
Three Months Ended
 
Six Months Ended
(MILLIONS OF DOLLARS)
 
June 28,
2015

 
June 29,
2014

 
June 28,
2015

 
June 29,
2014

Interest income(a)
 
$
(119
)
 
$
(104
)
 
$
(211
)
 
$
(196
)
Interest expense(a)
 
278

 
343

 
587

 
664

Net interest expense
 
159

 
239

 
375

 
468

Royalty-related income
 
(257
)
 
(239
)
 
(479
)
 
(487
)
Certain legal matters, net(b)
 
99

 
(2
)
 
99

 
692

Net gains on asset disposals(c)
 
(19
)
 
(33
)
 
(195
)
 
(214
)
Certain asset impairments(d)
 
25

 
—

 
25

 
115

Business and legal entity alignment costs(e)
 
63

 
39

 
164

 
67

Other, net
 
(15
)
 
(57
)
 
20

 
(71
)
Other (income)/deductions––net
 
$
55

 
$
(53
)
 
$
9

 
$
570

(a) 
Interest income increased in the second quarter and first six months of 2015, primarily due to higher investment returns. Interest expense decreased in the second quarter and first six months of 2015, primarily due to lower interest rates on new fixed rate debt added in the second quarter of 2014, the repayment of some long-term debt in the first quarter of 2015 and the benefit of the effective conversion of some fixed-rate liabilities to floating-rate liabilities.
(b) 
In the first six months of 2014, primarily includes approximately $620 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $55 million for an Effexor-related matter.
(c) 
In the first six months of 2015, primarily includes gains on sales/out-licensing of product and compound rights (approximately $69 million) and gains on sales of investments in equity securities (approximately $125 million). In the first six months of 2014, primarily includes gains on sales/out-licensing of product and compound rights (approximately $96 million) and gains on sales of investments in equity securities (approximately $98 million).
(d) 
In the first six months of 2014, includes intangible asset impairment charges 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 six months of 2014 is associated with Worldwide Research and Development and reflects, among other things, the impact of changes to the development program.
(e) 
In the second quarter and first six months 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.