

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2015		2014			2015		2014
Royalty income	$	32	$	34		$	71	$	72
Interest income	40		43			65		71
Equity in earnings of affiliates, net	21		9			30		22
Net gain on sales of businesses and other assets	25		404			31		411
Net exchange gains (losses)¹	26		(109		)	90		(205		)
Miscellaneous income and expenses, net ²	139		27			194		54
Other income, net	$	283	$	408		$	481	$	425

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 (losses) are recorded in other income, net and the related tax impact is recorded in provision for income taxes on the company's interim Consolidated Income Statements. The $26 net exchange gain (loss) for the three months ended June 30, 2015, was driven by an $88 adjustment for gains, attributable to the first quarter 2015, on foreign exchange contracts. These contracts were used to align the hedge portfolio to the revised currency exposure of certain foreign entities associated with their change in functional currency during the first quarter of 2015 resulting from the Performance Chemicals separation, coupled with the company's redesign initiative. The impact of the adjustment was not material to either period. The increase in year-to-date pre-tax exchange gains over prior year was driven by gains on foreign currency contracts due to strengthening of the USD versus global currencies partially offset by losses on the related foreign currency-denominated monetary assets and liabilities. The $90 net exchange gain (loss) for the six months ended June 30, 2015, includes a net $(32) pre-tax exchange loss associated with the devaluation of the Ukrainian hryvnia. The $(109) net exchange loss for the three months ended June 30, 2014, includes $(58) and $(7) exchange losses, associated with the devaluation of the Venezuelan bolivar and Ukrainian hryvnia, respectively. The $(205) net exchange loss for the six months ended June 30, 2014, includes $(58), $(46) and $(14) exchange losses, associated with the devaluation of the Venezuela bolivar, Ukrainian hryvnia, and Argentinian peso, respectively.


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