OTHER (INCOME) EXPENSE



	Three Months Ended
	March 31,
(In millions)	2018			2017
Non-service related pension and other postretirement benefits cost	$	34		$	8
Financing fees and financial instruments	9			8
Net foreign currency exchange (gains) losses	(7		)	(1		)
Royalty income	(5		)	(5		)
Interest income	(4		)	(4		)
Net (gains) losses on asset sales	2			(1		)
General and product liability expense (income) - discontinued products	1			2
Miscellaneous expense	7			1
	$	37		$	8

Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. Non-service related pension and other postretirement benefits cost for the three months ended March 31, 2018 includes $9 million of expense related to the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory. Also, non-service related pension and other postretirement benefits cost for the three months ended March 31, 2018 and 2017 includes $2 million and $10 million, respectively, in amortization of prior service credits for other postretirement benefits. For further information, refer to Note to the Consolidated Financial Statements No. 10, Pension, Savings and Other Postretirement Benefit Plans, in this Form 10-Q.

Miscellaneous expense for the three months ended March 31, 2018 includes $4 million of transaction costs related to a new joint venture and $3 million of continuing repair expenses incurred by the Company as a direct result of hurricanes Harvey and Irma during the third quarter of 2017.

Other (Income) Expense also includes financing fees and financial instruments expense which consists of commitment fees and charges incurred in connection with financing transactions, net foreign currency exchange (gains) and losses, royalty income which is derived primarily from licensing arrangements related to divested businesses as well as other licensing arrangements, interest income which primarily consists of amounts earned on cash deposits, net (gains) and losses on asset sales, and general and product liability expense (income) - discontinued products which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries.