Other Income

12 Months Ended

Feb. 01, 2020

Other Income [Abstract]

Other Income

4. Other Income, net

Other income, net includes non-operating items, such as:

- gains from insurance recoveries,

- lease termination gains related to the sales of leasehold interests,

- franchise royalty income,

- changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts,

- changes in the market value of our available-for-sale security in conjunction with the adoption of ASU 2016-01 effective with the beginning of 2018,

- our share of earnings or losses related to our equity method investment, and

- net benefit expense related to our pension and postretirement programs excluding the service cost component as required by the adoption of ASU 2017-07 as of the beginning of 2018.

Other income, net was $12 million in 2019 and $5 million in both 2018 and 2017.

For 2019, Other income, net included $8 million of royalty income, a $4 million gain associated with the acquisition of a Canadian distribution center lease and related assets from the partial exchange of a note that had previously been written down to zero, a $2 million gain related to the sale of a building, a $1 million gain on our available-for-sale security, partially offset by $2 million of net benefit expense relating to our pension and post retirement programs, and a $1 million loss related to an equity method investment.

For 2018, Other income, net included $6 million of royalty income, $1 million of lease termination gains, a $1 million loss on our available-for-sale security, and $1 million of net benefit expense relating to our pension and post retirement programs. Included in 2017 was $4 million of royalty income and $1 million of lease termination gains.