Other income, net  — The following table shows the major components of other income, net. The change in interest income in 2014 includes a reduction of $1 1 attributable to a payment-in-kind note receivable being  partially prepaid in 2013 and subsequently sold in January 2014.Additionally, interest income in 2013 included $3 from a  favorable legal ruling related to recovery of gross receipts taxes paid in Brazil in earlier periods. Net foreign exchange gain in  2014 resulted in large part from favorable currency movement on an intercompany loan that was fully paid in the first half of  2014. As described in Note 1 of the consolidated financial statements in Item 8, devaluation of the  Venezuelan bolivar was  recognized through use of the SICAD rate for translating the bolivar -denominated activities of our operations in  Venezuela.  Devaluation charges of $20 in 2014 were more than of fset by gains of $22 from subsequent settlement of dollar -denominated  obligations at the more favorable of ficial exchange rate and sales of U.S. dollars at the SICAD 2 exchange rate. (See  Operations in Venezuela section of this Item 7 for further discussion.)  The net foreign exchange loss for 2013 included a char ge  of $6 resulting from the devaluation of the  Venezuelan bolivar and subsequent recoveries of $5 on transactions existing at the  date of devaluation that were subsequently settled at the former exchange rate. During 2013, we wrote of f deferred financing  costs of $2 associated with our prior revolving credit facility and $2 upon the termination of our European accounts receivable  backed credit facility. The January 2014 sale and 2013 prepayment of the payment-in-kind note receivable resulted in  recognition of $2 and $5 of an unrealized gain that arose following the valuation of the note receivable below its callable value  at emergence from bankruptcy. During 2013, we received $4 on the sale of our interest in claims pending in the liquidation  proceedings of an insurer to a third party , $7 of other asbestos-related recoveries and a $2 insurance recovery related to  business interruptions resulting from flooding in  Thailand. Interest expense  — Interest expense was $118 and $99 in 2014 and 2013. The impact of higher average debt levels was  partially offset by a lower average ef fective interest rate. As discussed in Note 13 to the consolidated financial statements in  Item 8, we completed the sale of $425 and $750 in senior unsecured notes in December 2014 and July 2013, respectively , and  redeemed $345 in senior unsecured notes in December 2014. Average effective interest rates, inclusive of amortization of debt  issuance costs, approximated 6.9% and 7.8% in 2014 and 2013. Income tax expense  — Income taxes of our continuing operations was a benefit of $70 in 2014.The primary driver was a  benefit of $179 recorded for the release of a portion of our U.S. deferred tax asset valuation allowance. As discussed more  fully in Note 17 to our consolidated financial statements in Item 8, the release resulted from income forecasted to be realized in  2015 in connection with certain tax planning actions expected to be completed in 2015.The $80 charge associated with the  divestiture of our operations in  Venezuela provided a partial offset as the expected tax benefit was negated by an adjustment to  the valuation allowance. Excluding these valuation allowance adjustments, the ef fective tax rate of continuing operations in  2014 was 33% as the benefit of income in certain jurisdictions outside the U.S. being taxed at lower statutory rates more than  offset withholding taxes incurred in connection with the repatriation of income to the U.S. In 2013, tax expense of $1 19  resulted in an effective tax rate of 32%.  Adjusted for valuation allowance ef fects, primarily in the U.S., the ef fective income tax  rate in 2013 was 34%. Lower statutory rates outside the U.S. were the primary contributor to the adjusted 2013 rate being less  than the U.S. statutory rate. In the U.S. and certain other countries, our recent history of operating losses does not allow us to satisfy the “more likely  than not” criterion for recognition of deferred tax assets.  Therefore, there is generally no income tax recognized on the pre-tax  income or losses in these jurisdictions as valuation allowance adjustments of fset the associated tax ef fects. We believe that it is  reasonably possible that up to $500 of the valuation allowance against our U.S. deferred tax assets could be released in the next  twelve months. See Note 17 to our consolidated financial statements in Item 8 for additional information. 22 2014 2013 Interest income $ 15 $ 25 Government grants and incentives 4 3 Foreign exchange gain (loss) 11 (5 ) Strategic transaction expenses (3 ) (4 ) Write-off of deferred financing costs (4 ) Gain on sale of marketable securities 9 Recognition of unrealized gain on payment-in-kind note receivable 2 5 Insurance and other recoveries 2 13 Other 17 13 Other income, net $ 48 $ 55