Note 16. Other Income (expense)

The components of other income (expense) are summarized below (in thousands):



	Year Ended
	December 31,
	2015		2014		2013
Foreign exchange gain (loss)	$	717	$	(999)	$	(1,253)
Gain on sales of investments		859		1,263		—
Other income (expense)		447		97		505
	$	2,023	$	361	$	(748)

Foreign Exchange Contracts and Transaction Gains/Losses

Transaction gains and losses resulting from transactions denominated in currencies other than the U.S. dollar or in the functional currencies of our subsidiaries are included in “other income (expense), net” for the periods presented. The transaction gains for the year ended December 31, 2015 totaled $717,000 and the transaction losses for the years ended December 31, 2014 and 2013 totaled $1.0 million and $1.3 million, respectively.

To partially protect us against fluctuations in foreign currency resulting from accounts receivable in Japanese yen from our Japanese customers, starting in 2015, we instituted a foreign currency hedging program. We place short term hedges that are intended to offset the potential cash exposure related to fluctuations in the exchange rate between the United States dollar and Japanese yen. We measure the fair value of these hedges at each month end and quarter end using current exchange rates and in accordance with generally accepted accounting principles. At quarter end any foreign currency hedges not settled are netted on the consolidated balance sheet and classified as Level 3 assets and liabilities. As of December 31, 2015 the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact to the consolidated results. As of December 31, 2015, our outstanding commitments with respect to foreign exchange contracts were $36,000. As of December 31, 2014, we had no outstanding commitments with respect to foreign exchange contracts.

Gain on Sales of Investments

Gain on sales investments were derived from the realized gain from the sales of our IntelliEpi common stock, an available-for-sales investment, in the Taiwan stock exchange market in year ended December 31, 2015 and 2014. As of December 31, 2015, we no longer hold any IntelliEpi stock.