Other Income, Net

12 Months Ended

Dec. 31, 2012

Other Income and Expenses [Abstract]

Other Income, Net

OTHER INCOME, NET

	2012			2011			2010
Cozaar®/Hyzaar® income	$	54		$	282		$	483
Royalty income	177			189			140
Interest income	109			110			92
Equity in earnings of affiliates, excluding exchange gains/losses1	99			191			179
Gain on sale of equity method investment	122			—			—
Net gains on sales of assets	130			89			121
Net exchange losses1	(215		)	(146		)	(11		)
Miscellaneous income and expenses, net2	22			27			195
	$	498		$	742		$	1,199

^1.  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 net pre-tax exchange gains and 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. Exchange gains (losses) related to earnings of affiliates was $3, $1 and $(2) for 2012, 2011 and 2010, respectively.

^2.  Miscellaneous income and expenses, net, generally includes interest items, insurance recoveries, litigation settlements and other items.