Other Income, Net



	Three Months Ended
	March 31,
	2017			2016
Royalty income	$	45		$	57
Interest income	25			16
Equity in earnings of affiliates, net	18			10
Net gain on sales of businesses and other assets^1,2	192			373
Net exchange losses	(59		)	(121		)
Miscellaneous income and expenses, net³	85			37
Other income, net	$	306		$	372


^1.	Includes a pre-tax gain of $162 ($86 net of tax) for the three months ended March 31, 2017 related to the sale of the global food safety diagnostic business. See Note 3 for additional information.


^2.	Includes a pre-tax gain of $369 ($214 net of tax) for the three months ended March 31, 2016 related to the sale of DuPont (Shenzhen) Manufacturing Limited. See Note 3 for additional information.

^3.

Miscellaneous income and expenses, net, includes interest items, gains related to litigation settlements, and other items. For the three months ended March 31, 2017, the amount includes a $47 benefit associated with accrued interest reversals related to a reduction in the company's unrecognized tax benefits due to the closure of various tax statutes of limitations. See Note 6 for additional information.

The following table summarizes the impacts of the company's foreign currency hedging program on the company's results of operations for the three months ended March 31, 2017 and 2016. 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 hedging program gains (losses) are largely taxable (tax deductible) in the U.S., whereas the offsetting exchange gains (losses) on the re-measurement of certain net monetary asset positions are not taxable (tax deductible) in their local jurisdictions. 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 continuing operations in the interim Consolidated Income Statements.



	Three Months Ended
	March 31,
	2017			2016
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains	$	26		$	33
Local tax benefits	36			13
Net after-tax impact from subsidiary exchange gains	62			46

Hedging Program Gain (Loss)
Pre-tax exchange losses	(85		)	(154		)
Tax benefits	30			55
Net after-tax impact from hedging program exchange losses	(55		)	(99		)

Total Exchange Gain (Loss)
Pre-tax exchange losses	(59		)	(121		)
Tax benefits	66			68
Net after-tax exchange gains (losses)	$	7		$	(53	)