Non-Operating ItemsFiscal year 2014

Non-Operating Items
Fiscal year 2014 compared with fiscal year 2013
Interest expense increased 6% in 2014 to $709 million,
primarily due to an increase in average debt outstanding.
Interest income was $100 million in 2014, an increase of $13
million versus the prior year due to an increase in cash, cash
equivalents and investment securities. Other non-operating
income, net, primarily includes divestiture gains and
investment income. Other non-operating income decreased
$736 million to $206 million, primarily due to acquisition
and divestiture impacts. In 2014, we had approximately
$150 million in divestiture gains, primarily related to the
sale of our bleach businesses in CEEMEA and Latin
America, our Pert hair care business in Latin America and
MDVIP. The prior year acquisition and divestiture activities
included a $631 million holding gain resulting from P&G's
purchase of the balance of its Baby Care and Feminine Care
joint venture in Iberia and an approximate $250 million gain
from the divestiture of our Italy bleach business.
Fiscal year 2013 compared with fiscal year 2012
Interest expense decreased 13% in 2013 to $667 million, due
to lower interest rates on floating-rate debt. Interest income
increased 13% in 2013 to $87 million, due to an increase in
cash, cash equivalents and debt securities. Other nonoperating
income increased $757 million to $942 million in
2013 mainly due to net acquisition and divestiture activities.
The $631 million holding gain resulting from the purchase
of the balance of P&G's Baby Care and Feminine Care joint
venture in Iberia and the gain of approximately $250 million
from the sale of our Italian bleach business, both in fiscal
2013, were partially offset by a $130 million divestiture gain
from the PUR water filtration business in 2012.