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Other (Income)/Deductions - Net
 3 Months Ended
Apr. 03, 2016
Other Income and Expenses [Abstract]  
Other (Income)/Deductions - Net
Other (Income)/Deductions—Net
The following table provides components of Other (income)/deductions––net:
 
 
Three Months Ended
(MILLIONS OF DOLLARS)
 
April 3,
2016

 
March 29,
2015

Interest income(a)
 
$
(113
)
 
$
(93
)
Interest expense
 
306

 
309

Net interest expense
 
193

 
216

Royalty-related income
 
(187
)
 
(222
)
Certain legal matters, net(b)
 
274

 
—

Net gains on asset disposals(c)
 
(9
)
 
(175
)
Certain asset impairments(d)
 
131

 
—

Business and legal entity alignment costs(e)
 
51

 
101

Other, net(f)
 
(122
)
 
34

Other (income)/deductions––net
 
$
330

 
$
(46
)
(a) 
Interest income increased in the first quarter of 2016, primarily due to higher investment returns.
(b) 
In the first quarter of 2016, primarily includes an accrual for an unresolved legal matter and a settlement related to a patent matter.
(c) 
In the first quarter of 2016, primarily includes gains on sales/out-licensing of product and compound rights (approximately $16 million). In the first quarter of 2015, primarily includes gains on sales/out-licensing of product and compound rights (approximately $45 million) and gains on sales of investments in equity securities (approximately $120 million).
(d) 
In the first quarter of 2016, represents an impairment loss of $81 million related to Pfizer’s 49%-owned equity-method investment with Zhejiang Hisun Pharmaceuticals Co., Ltd. (Hisun) in China, Hisun Pfizer, and an impairment loss of $50 million related to Pfizer's 40%-owned equity-method investment in Teuto. For additional information concerning Hisun Pfizer and Teuto, see Note 2C.
(e) 
In the first quarter of 2016 and 2015, represents expenses for changes to our infrastructure to align our commercial operations, including costs to internally separate our businesses into distinct legal entities, as well as to streamline our intercompany supply operations to better support each business.
(f) 
In the first quarter of 2016, primarily includes, among other things, income of $116 million from resolution of a contract disagreement.