13. Supplemental financial information

Acquisition charges

Acquisition charges represent the ongoing amortization of intangible assets resulting from the acquisition of National Semiconductor Corporation. These amounts are included in Other for segment reporting purposes, consistent with how management measures the performance of its segments. See Note 9 for additional information.

Other income (expense), net (OI&E)

	For Years Ended December 31,
	2017			2016			2015
Royalty income (a)	$	119		$	—		$	—
Income from settlements related to intellectual property infringement		—			188			—
Pension and other retiree benefit costs (b)		(61	)		(56	)		(48	)
Other (c)		17			23			32
Total	$	75		$	155		$	(16	)

(a)	As of January 1, 2017, royalties are recorded in OI&E. See Note 1 for additional information.

(b)	Reflects the adoption of ASU 2017-07. See Note 2 for additional information.

(c)	Other includes interest and lease income, investment and currency gains and losses, and tax interest income and expense.

Prepaid expenses and other current assets

	December 31,
	2017		2016
Prepaid taxes on intercompany inventory profits, net	$	768	$	566
Other		262		344
Total	$	1,030	$	910

Property, plant and equipment at cost

	Depreciable	December 31,
	Lives (Years)	2017		2016
Land	n/a	$	127	$	127
Buildings and improvements	5 - 40		2,467		2,753
Machinery and equipment	2 - 10		2,195		2,043
Total		$	4,789	$	4,923

Other long-term liabilities

	December 31,
	2017		2016
Long-term portion of tax on indefinitely reinvested earnings	$	635	$	—
Other		668		554
Total	$	1,303	$	554

Accumulated other comprehensive income (loss), net of taxes (AOCI)

	December 31,
	2017			2016
Postretirement benefit plans:
Net actuarial loss	$	(394	)	$	(542	)
Prior service credit		10			17
Cash flow hedge derivative instruments		—			(1	)
Total	$	(384	)	$	(526	)

Details on amounts reclassified out of Accumulated other comprehensive income (loss), net of taxes, to Net income

Our Consolidated Statements of Comprehensive Income include items that have been recognized within Net income in 2017, 2016 and 2015. The table below details where these transactions are recorded in our Consolidated Statements of Income.

	For Years Ended									Impact to
	December 31,									Related Statement
	2017			2016			2015			of Income Line
Net actuarial losses of defined benefit plans:
Recognized net actuarial loss and Settlement losses (a)	$	83		$	76		$	78		Decrease to OI&E
Tax effect		(27	)		(25	)		(25	)	Decrease to Provision for income taxes
Recognized within Net income, net of taxes	$	56		$	51		$	53		Decrease to Net income

Prior service credit of defined benefit plans:
Amortization of prior service cost (credit) (a)	$	(6	)	$	(5	)	$	—		Increase to OI&E
Tax effect		1			2			—		Increase to Provision for income taxes
Recognized within Net income, net of taxes	$	(5	)	$	(3	)	$	—		Increase to Net income

Derivative instruments:
Amortization of treasury-rate locks	$	1		$	1		$	2		Increase to Interest and debt expense
Tax effect		—			—			(1	)	Decrease to Provision for income taxes
Recognized within Net income, net of taxes	$	1		$	1		$	1		Decrease to Net income

(a)	Detailed in Note 10.