Other Income, Net



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012			2011
Cozaar^®/Hyzaar^® income	$	14	$	79	$	39		$	127
Royalty income	25		35		66			66
Interest income	37		32		60			60
Equity in earnings of affiliates, excluding exchange gains/losses	21		35		31			83
Gain on sale of equity method investment	122		—		122			—
Net gain on sales of other assets	5		33		10			39
Net exchange gains (losses) ¹	28		4		(52		)	(139		)
Miscellaneous income and expenses, net ²	25		11		27			18
Total	$	277	$	229	$	303		$	254

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 the interim Consolidated Income Statements.


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