4. Other Income

Other income includes non-operating items, such as:

gains from insurance recoveries,

lease termination gains related to the sales of leasehold interests,

discounts/premiums paid on the repurchase and retirement of bonds,

franchise royalty income,

changes in fair value, premiums paid, 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,

changes in the fair value of our equity investments, 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 was $5 million in both 2018 and 2017 and was $6 million in 2016. For 2018, other income includes $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. Other income in 2016 included a gain of $2 million on a forward foreign currency contract associated with an intercompany transaction that did not qualify for hedge accounting; $2 million of royalty income; $1 million related to an insurance recovery; and $1 million of lease termination gains.