Table:
| (In millions) |  |  |  |
| --- | --- | --- | --- |
| Year Ended June 30, | 2019 | 2018 | 2017 |
| Interest and dividends income | $    2,762 | $    2,214 | $   1,387 |
| Interest expense | (2,686) | (2,733) | (2,222) |
| Net recognized gains on investments | 648 | 2,399 | 2,583 |
| Net gains (losses) on derivatives | 144 | (187) | (510) |
| Net losses on foreign currency remeasurements | (82) | (218) | (111) |
| Other, net | (57) | (59) | (251) |
| Total | $  729 | $ 1,416 | $  876 |
Paragraphs:
OTHER INCOME (EXPENSE), NET
The components of other income (expense), net were as follows:
We use derivative instruments to: manage risks related to foreign currencies, equity prices, interest rates, and credit; enhance investment returns; and facilitate portfolio diversification. Gains and losses from changes in fair values of derivatives that are not designated as hedging instruments are primarily recognized in other income (expense), net.
Fiscal Year 2019 Compared with Fiscal Year 2018 Interest and dividends income increased primarily due to higher yields on fixed-income securities. Interest expense decreased primarily driven by a decrease in outstanding long-term debt due to debt maturities, offset in part by higher finance lease expense. Net recognized gains on investments decreased primarily due to lower gains on sales of equity investments. Net gains on derivatives includes gains on foreign exchange and interest rate derivatives in the current period as compared to losses in the prior period.
Fiscal Year 2018 Compared with Fiscal Year 2017 Dividends and interest income increased primarily due to higher average portfolio balances and yields on fixed-income securities. Interest expense increased primarily due to higher average outstanding long-term debt and higher finance lease expense. Net recognized gains on investments decreased primarily due to higher losses on sales of fixed-income securities, offset in part by higher gains on sales of equity securities. Net losses on derivatives decreased primarily due to lower losses on equity, foreign exchange, and commodity derivatives, offset in part by losses on interest rate derivatives in the current period as compared to gains in the prior period.
Question:
Why did interest and dividends income increase from $1,387 million in 2017 to $2,214 million in 2018?
Answer: Dividends and interest income increased primarily due to higher average portfolio balances and yields on fixed-income securities.