Other (Income) Expense, Net
Other (income) expense, net, consisted of:
|
| | | | | | | | | | | |
Years Ended December 31 | 2013 | | 2012 | | 2011 |
Interest income | $ | (264 | ) | | $ | (232 | ) | | $ | (145 | ) |
Interest expense | 801 |
| | 714 |
| | 695 |
|
Exchange losses | 290 |
| | 185 |
| | 143 |
|
Other, net | (12 | ) | | 449 |
| | 253 |
|
| $ | 815 |
| | $ | 1,116 |
| | $ | 946 |
|
The increase in interest income in 2012 as compared with 2011 reflects the accretion of time value of money discounts related to certain accounts receivables, including accelerated accretion related to significant collections of accounts receivable in Spain (see Note 5). The increase in interest expense in 2013 as compared with 2012 is driven in part by the issuances of debt in September 2012 and May 2013. Exchange losses in 2013 reflect $140 million of losses due to a Venezuelan currency devaluation. In February 2013, the Venezuelan government devalued its currency (Bolívar Fuertes) from 4.30 VEF per U.S. dollar to 6.30 VEF per U.S. dollar. The Company recognized losses due to exchange of approximately $140 million in 2013 resulting from the remeasurement of the local monetary assets and liabilities at the new rate. Since January 2010, Venezuela has been designated hyperinflationary and, as a result, local foreign operations are remeasured in U.S. dollars with the impact recorded in results of operations. Other, net (as presented in the table above) in 2012 reflects a $493 million net charge related to the settlement of the ENHANCE Litigation (see Note 10). Other, net in 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), a $136 million gain on the disposition of the Company’s interest in the JJMCP joint venture (see Note 8), and a $127 million gain on the sale of certain manufacturing facilities and related assets (see Note 4).
Interest paid was $922 million in 2013, $808 million in 2012 and $600 million in 2011. Interest paid for 2011 is net of $288 million received by the Company from the termination of certain interest rate swap contracts during the year (see Note 5).
