Net income in 2008 included gains of approximately $1,200 relating to the sale of nonstrategic properties. Of this amount, approximately $1,000 related to upstream assets. Net income in 2007 included gains of approximately $2,000 relating to the sale of nonstrategic properties. Of this amount, approximately $1,100 related to downstream assets and $680 related to the sale of the company's investment in Dynegy Inc.

Other financial information is as follows:

Year ended December 31
2008 2007 2006
*

Includes $420, $18 and $15 in 2008, 2007 and 2006, respectively, for the company's share of equity affiliates' foreign currency effects.
Total financing interest and debt costs $256 $468 $608
Less: Capitalized interest 256 302 157
Interest and debt expense $– $166 $451
Research and development expenses $835 $562 $468
Foreign currency effects* $862 $(352) $(219)

The excess of replacement cost over the carrying value of inventories for which the Last-In, First-Out (LIFO) method is used was $9,368 and $6,958 at December 31, 2008 and 2007, respectively. Replacement cost is generally based on average acquisition costs for the year. LIFO profits of $210, $113 and $82 were included in net income for the years 2008, 2007 and 2006, respectively.