Other (Income) Expense, Net

Other (income) expense, net, consisted of:



Years Ended December 31	2017			2016			2015
Interest income	$	(385	)	$	(328	)	$	(289	)
Interest expense	754			693			672
Exchange (gains) losses	(11		)	174			1,277
Equity income from affiliates	(42		)	(86		)	(205		)
Other, net	(304		)	267			72
	$	12		$	720		$	1,527

The exchange losses in 2015 were related primarily to the Venezuelan Bolívar. During 2015, upon evaluation of evolving economic conditions in Venezuela and volatility in the country, combined with a decline in transactions that were settled at the then official (CENCOEX) rate, the Company determined it was unlikely that all outstanding net monetary assets would be settled at the CENCOEX rate. Accordingly, during 2015, the Company recorded charges of $876 million to devalue its net monetary assets in Venezuela to amounts that represented the Company’s estimate of the U.S. dollar amount that would ultimately be collected and recorded additional exchange losses of $138 million in the aggregate during 2015 reflecting the ongoing effect of translating transactions and net monetary assets consistent with these rates. 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.

The decline in equity income from affiliates in 2017 as compared with 2016 was driven primarily by the termination of the SPMSD joint venture on December 31, 2016, partially offset by higher equity income from certain research investment funds. The decline in equity income from affiliates in 2016 as compared with 2015 was driven primarily by lower equity income from certain research investment funds.

Other, net (as presented in the table above) in 2017 includes gains of $291 million on the sale of equity investments, income of $232 million related to AstraZeneca’s option exercise (see Note 9), and a $191 million loss on extinguishment of debt (see Note 10).

Other, net in 2016 includes a charge of $625 million to settle worldwide patent litigation related to Keytruda (see Note 11), a gain of $117 million related to the settlement of other patent litigation, gains of $100 million resulting from the receipt of milestone payments for out-licensed migraine clinical development programs (see Note 3) and $98 million of income related to AstraZeneca’s option exercise.

Other, net in 2015 includes a $680 million net charge related to the settlement of Vioxx shareholder class action litigation (which was paid in 2016) and an expense of $78 million for a contribution of investments in equity securities to the Merck Foundation, partially offset by a $250 million gain on the sale of certain migraine clinical development programs (see Note 3), a $147 million gain on the divestiture of Merck’s remaining ophthalmics business in international markets (see Note 3), and the recognition of $182 million of income related to AstraZeneca’s option exercise.

Interest paid was $723 million in 2017, $686 million in 2016 and $653 million in 2015.