Other Income

12 Months Ended

Jan. 30, 2021

Other Income [Abstract]

Other Income

4. Other Income, net

Other income, net was $198 million, $12 million, and $5 million in 2020, 2019, and 2018, respectively.

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

- franchise royalty income,

- gains associated with disposal of property,

- 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,

- premiums paid to repurchase and retire bonds,

- changes in value for our investments accounted for using the fair value measurement alternative, which is at cost adjusted for changes in observable prices minus impairment,

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

- net benefit expense or income related to our pension and postretirement programs, excluding the service cost component.

In 2020, one of our minority investments, which is measured using the fair value measurement alternative, received additional funding in August at a higher valuation than our initial investment. As a result, we recorded a $190 million non-cash gain during the third quarter of 2020. Other income, net also included $6 million of royalty income, $5 million of net benefit income relating to our pension and post retirement programs. This income was partially offset by $2 million in premiums paid in connection with the repurchase and retirement of bonds and a $1 million loss related to our equity method investments.

During 2019, we recorded $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 $1 million loss related to our equity method investments.

During 2018, we recorded $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.