Other Expense
|
| | | | | | | | | | | |
(In millions) Expense(Income) | 2013 | | 2012 | | 2011 |
Net foreign currency exchange losses | $ | 118 |
| | $ | 26 |
| | $ | 27 |
|
Financing fees and financial instruments | 56 |
| | 156 |
| | 89 |
|
Royalty income | (51 | ) | | (38 | ) | | (47 | ) |
Interest income | (41 | ) | | (17 | ) | | (16 | ) |
General and product liability — discontinued products | 15 |
| | 8 |
| | 21 |
|
Net gains on asset sales | (8 | ) | | (25 | ) | | (16 | ) |
Miscellaneous expense | 8 |
| | 29 |
| | 15 |
|
| $ | 97 |
| | $ | 139 |
| | $ | 73 |
|
Net foreign currency exchange losses in 2013 were $118 million, which included a net loss of $115 million resulting from the devaluation of the Venezuelan bolivar fuerte against the U.S. dollar, compared to losses of $26 million and $27 million in 2012 and 2011, respectively. Foreign currency exchange in all periods reflected net gains and losses resulting from the effect of exchange rate changes on various foreign currency transactions worldwide.
Effective February 13, 2013, Venezuela's official exchange rate changed from 4.3 to 6.3 bolivares fuertes to the U.S. dollar for substantially all goods. In the first quarter of 2013, we recorded a $115 million remeasurement loss on bolivar-denominated net monetary assets and liabilities, including deferred taxes, primarily related to cash deposits in Venezuela. We also recorded a one-time subsidy receivable of $13 million related to certain U.S. dollar-denominated payables that are expected to be settled at the official subsidy exchange rate of 4.3 bolivares fuertes per U.S. dollar applicable to certain import purchases prior to the devaluation date. A portion of this subsidy reduced cost of goods sold in periods when the related inventory was sold.
Financing fees and financial instruments expense was $56 million in 2013, compared to $156 million in 2012 and $89 million in 2011. Financing fees and financial instruments expense consists of the amortization of deferred financing fees, commitment fees and charges incurred in connection with financing transactions. Financing fees in 2012 included $86 million related to the redemption of $650 million in aggregate principal amount of our outstanding 10.5% senior notes due 2016 and $24 million of charges related to the amendment and restatement of our U.S. second lien term loan facility. Financing fees in 2011 included $53 million of charges on the redemption of $350 million in aggregate principal amount of our outstanding 10.5% senior notes due 2016.
Royalty income in 2013 was $51 million, compared to income of $38 million and $47 million in 2012 and 2011, respectively. Royalty income in 2013 and 2011 includes one-time royalties of $11 million and $6 million, respectively, related to our chemical operations. Royalty income is derived primarily from licensing arrangements related to divested businesses.
Interest income consists primarily of amounts earned on cash deposits. Interest income in 2013 also included $11 million earned on favorable tax judgments in Latin America. General and product liability — discontinued products includes charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries. General and product liability in 2011 includes $13 million of expense related to an adjustment for prior periods.
Net gains on asset sales in 2013 include gains on the transfer of property in Dalian, China to the Chinese government and the sale of property in North America. Net gains on asset sales in 2012 include gains from the sale of a minority interest in a retail business in EMEA, the sale of certain assets related to our bias truck tire business in Latin America and the sale of property in North America. Net gains on asset sales in 2011 include gains on the sale of the farm tire business in Latin America and the sale of property in Asia Pacific.
Miscellaneous expense in 2013 and 2012 includes $6 million and $25 million, respectively, of charges for certain labor claims relating to a previously closed facility in EMEA. Miscellaneous expense in 2011 includes $9 million related to our insurance deductible with respect to losses as a result of flooding in Thailand.
