Other (Income) Expense, Net

9 Months Ended

Sep. 30, 2012

Other (Income) Expense, Net

14. Other (Income) Expense, Net

Other (income) expense, net, consisted of:

	Three Months Ended     September 30,				Nine Months Ended     September 30,
($ in millions)	2012		2011		2012		2011
Interest income	$	(47)	$	(32)	$	(177)	$	(102)
Interest expense		178		176		524		522
Exchange losses		50		59		130		102
Other, net		19		(137)		(31)		287
	$	200	$	66	$	446	$	809

As a result of significant collections of accounts receivable in Spain (see Note 5), the Company recognized incremental interest income of approximately $35 million in the first nine months of 2012 for accelerated accretion of time value of money discounts related to these receivables. Other, net (as presented in the table above) for the third quarter and first nine months of 2011 includes a $136 million gain on the disposition of the Company’s interest in the JJMCP joint venture. In addition, Other, net for the first nine months of 2011 reflects a $500 million charge related to the resolution of the arbitration proceeding involving the Company’s rights to market Remicade and Simponi (see Note 4), as well as a $127 million gain on the sale of certain manufacturing facilities and related assets. Interest paid for the nine months ended September 30, 2012 and 2011 was $583 million and $261 million, respectively, which excludes commitment fees. Interest paid for the nine months ended September 30, 2011 is net of $288 million received by the Company from the termination of certain interest rate swap contracts during the period (see Note 5).