Ace Company's income statements for the three years 2012, 2011, and 2010 are given below (all amounts in $ millions): 2012 2011 2010 Sales...... 3,424 3,036 2,818 Cost of goods sold (1,604) (1,297) (1,157) Gross profit... 1,820 1,738 1,661 Selling, general administration (1,260) (1,099) (1.126) Restructuring..... (765) Goodwill impairment... (23) Other income (expense). 110 33 55 Tax provision .... (201) (222) 19 Income from continuing operations. 447 451 (155) Income from discontinued operation.. 32 46 55 Gain on discontinued operation..... 69 Net income..... 548 497 (100) Note information from the annual report provided the following additional information: 1. Other income (expense) comprised the following: 2012 2011 2010 Interest income.. 159 173 194 Interest expense (215) (189) (130) Loss on early extinguishment of debt (13) Gain (loss) from sale of business units.. 80 Gain (loss) from sale of marketable securities .. 122 Unrealized gain (loss) on trading securities .... Early retirement charge... 11 (34) 110 (11) (6) 2 55 2. In 2012, cost of goods sold included inventory write-off of $45 million. This write-off pertained to obsolete in- ventory that was not sold for many years. Much of the written down inventory was unsold at the end of 2012. 3. Selling, general administration included share compensation expense of $23, $25, and $22 million, respectively, for 2012, 2011, and 2010. This expense relates to option grants given to the new CEO in 2010, which was valued at around $70 million on the date of grant. 4. The restructuring charge in 2010 was taken to significantly downsize and streamline operations and close a number of underperforming businesses. Of the charge of $765 million, $312 million was in the form of asset im- pairments and the remaining $453 million was cash payments related to lease cancellations, employee re- trenchment, and reorganization costs. It was expected that this restructuring would lead to cost reductions and improved efficiency that would last at least five years. The following items were reported in the statement of shareholders' equity: 2012 2011 2010 Foreign currency translation gains... Unrealized gain (loss) on available for sale securities Postretirement benefit adjustment... 23 4 55 23 (33) (40) 173 345 (433) 219 316 (418)