Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MRK | ' | ' |
Entity Registrant Name | 'Merck & Co. Inc. | ' | ' |
Entity Central Index Key | '0000310158 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 2,940,622,461 | ' |
Entity Public Float | ' | ' | $135,893 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $44,033 | $47,267 | $48,047 |
Costs, Expenses and Other | ' | ' | ' |
Materials and production | 16,954 | 16,446 | 16,871 |
Marketing and administrative | 11,911 | 12,776 | 13,733 |
Research and development | 7,503 | 8,168 | 8,467 |
Restructuring costs | 1,709 | 664 | 1,306 |
Equity income from affiliates | -404 | -642 | -610 |
Other (income) expense, net | 815 | 1,116 | 946 |
Total Costs, Expenses and Other | 38,488 | 38,528 | 40,713 |
Income Before Taxes | 5,545 | 8,739 | 7,334 |
Taxes on Income | 1,028 | 2,440 | 942 |
Net Income | 4,517 | 6,299 | 6,392 |
Less: Net Income Attributable to Noncontrolling Interests | 113 | 131 | 120 |
Net Income Attributable to Merck & Co., Inc. | $4,404 | $6,168 | $6,272 |
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) | $1.49 | $2.03 | $2.04 |
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) | $1.47 | $2 | $2.02 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net Income Attributable to Merck & Co., Inc. | $4,404 | $6,168 | $6,272 |
Other Comprehensive Income (Loss) Net of Taxes: | ' | ' | ' |
Net unrealized gain (loss) on derivatives, net of reclassifications | 229 | -101 | -37 |
Net unrealized (loss) gain on investments, net of reclassifications | -19 | 52 | -10 |
Benefit plan net gain (loss) and prior service cost (credit), net of amortization | 2,758 | -1,321 | -303 |
Cumulative translation adjustment | -483 | -180 | 434 |
Other comprehensive income (loss), net of taxes | 2,485 | -1,550 | 84 |
Comprehensive Income Attributable to Merck & Co., Inc. | $6,889 | $4,618 | $6,356 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $15,621 | $13,451 |
Short-term investments | 1,865 | 2,690 |
Accounts receivable (net of allowance for doubtful accounts of $146 in 2013 and $163 in 2012) (excludes accounts receivable of $275 in 2013 and $473 in 2012 classified in Other assets - see Note 5) | 7,184 | 7,672 |
Inventories (excludes inventories of $1,704 in 2013 and $1,606 in 2012 classified in Other assets - see Note 6) | 6,226 | 6,535 |
Deferred income taxes and other current assets | 4,789 | 4,509 |
Total current assets | 35,685 | 34,857 |
Investments | 9,770 | 7,305 |
Property, Plant and Equipment (at cost) | ' | ' |
Land | 550 | 591 |
Buildings | 13,627 | 13,196 |
Machinery, equipment and office furnishings | 17,106 | 17,188 |
Construction in progress | 1,811 | 2,440 |
Property, Plant and Equipment, Gross | 33,094 | 33,415 |
Less: accumulated depreciation | 18,121 | 17,385 |
Property, Plant and Equipment, Net, Total | 14,973 | 16,030 |
Goodwill | 12,301 | 12,134 |
Other Intangibles, Net | 23,801 | 29,083 |
Other Assets | 9,115 | 6,723 |
Total Assets | 105,645 | 106,132 |
Current Liabilities | ' | ' |
Loans payable and current portion of long-term debt | 4,521 | 4,315 |
Trade accounts payable | 2,274 | 1,753 |
Accrued and other current liabilities | 9,501 | 9,737 |
Income taxes payable | 251 | 1,200 |
Dividends payable | 1,321 | 1,343 |
Total current liabilities | 17,868 | 18,348 |
Long-Term Debt | 20,539 | 16,254 |
Deferred Income Taxes | 6,776 | 5,740 |
Other Noncurrent Liabilities | 8,136 | 10,327 |
Merck & Co., Inc. Stockholders’ Equity | ' | ' |
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2013 and 2012 | 1,788 | 1,788 |
Other paid-in capital | 40,508 | 40,646 |
Retained earnings | 39,257 | 39,985 |
Accumulated other comprehensive loss | -2,197 | -4,682 |
Stockholders' equity before deduction for treasury stock | 79,356 | 77,737 |
Less treasury stock, at cost: 649,576,808 shares in 2013 and 550,468,221 shares in 2012 | 29,591 | 24,717 |
Total Merck & Co., Inc. stockholders’ equity | 49,765 | 53,020 |
Noncontrolling Interests | 2,561 | 2,443 |
Total equity | 52,326 | 55,463 |
Total Liabilities and Equity | $105,645 | $106,132 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $146 | $163 |
Accounts receivable classified in other assets | 275 | 473 |
Inventories classified in other assets | $1,704 | $1,606 |
Common stock, par value | $0.50 | $0.50 |
Common stock, shares authorized | 6,500,000,000 | 6,500,000,000 |
Common stock, shares issued | 3,577,103,522 | 3,577,103,522 |
Treasury stock, shares | 649,576,808 | 550,468,221 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (USD $) | Total | Common Stock [Member] | Other Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2010 | $56,805 | $1,788 | $40,701 | $37,536 | ($3,216) | ($22,433) | $2,429 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income Attributable to Merck & Co., Inc. | 6,272 | ' | ' | 6,272 | ' | ' | ' |
Other comprehensive income (loss), net of taxes | 84 | ' | ' | ' | 84 | ' | ' |
Cash dividends declared on common stock | -4,818 | ' | ' | -4,818 | ' | ' | ' |
Treasury stock shares purchased | -1,921 | ' | ' | ' | ' | -1,921 | ' |
Net income attributable to noncontrolling interests | 120 | ' | ' | ' | ' | ' | 120 |
Net income attributable to noncontrolling interests | -120 | ' | ' | ' | ' | ' | -120 |
Share-based compensation plans and other | 521 | ' | -38 | ' | ' | 562 | -3 |
Ending Balance at Dec. 31, 2011 | 56,943 | 1,788 | 40,663 | 38,990 | -3,132 | -23,792 | 2,426 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income Attributable to Merck & Co., Inc. | 6,168 | ' | ' | 6,168 | ' | ' | ' |
Other comprehensive income (loss), net of taxes | -1,550 | ' | ' | ' | -1,550 | ' | ' |
Cash dividends declared on common stock | -5,173 | ' | ' | -5,173 | ' | ' | ' |
Treasury stock shares purchased | -2,591 | ' | ' | ' | ' | -2,591 | ' |
Net income attributable to noncontrolling interests | 131 | ' | ' | ' | ' | ' | 131 |
Net income attributable to noncontrolling interests | -120 | ' | ' | ' | ' | ' | -120 |
Share-based compensation plans and other | 1,655 | ' | -17 | ' | ' | 1,666 | 6 |
Ending Balance at Dec. 31, 2012 | 55,463 | 1,788 | 40,646 | 39,985 | -4,682 | -24,717 | 2,443 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income Attributable to Merck & Co., Inc. | 4,404 | ' | ' | 4,404 | ' | ' | ' |
Other comprehensive income (loss), net of taxes | 2,485 | ' | ' | ' | 2,485 | ' | ' |
Cash dividends declared on common stock | -5,132 | ' | ' | -5,132 | ' | ' | ' |
Treasury stock shares purchased | -6,516 | ' | ' | ' | ' | -6,516 | ' |
Supera joint venture formation | 228 | ' | 116 | ' | ' | ' | 112 |
Net income attributable to noncontrolling interests | 113 | ' | ' | ' | ' | ' | 113 |
Net income attributable to noncontrolling interests | -120 | ' | ' | ' | ' | ' | -120 |
Share-based compensation plans and other | 1,401 | ' | -254 | ' | ' | 1,642 | 13 |
Ending Balance at Dec. 31, 2013 | $52,326 | $1,788 | $40,508 | $39,257 | ($2,197) | ($29,591) | $2,561 |
Consolidated_Statement_of_Equi1
Consolidated Statement of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Common stock, dividends declared | $1.73 | $1.69 | $1.56 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | $4,517 | $6,299 | $6,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 6,988 | 6,978 | 7,427 |
Intangible asset impairment charges | 765 | 200 | 705 |
Gain on disposition of interest in equity method investment | 0 | 0 | -136 |
Equity income from affiliates | -404 | -642 | -610 |
Dividends and distributions from equity affiliates | 237 | 291 | 216 |
Deferred income taxes | -330 | 669 | -1,537 |
Share-based compensation | 276 | 335 | 369 |
Other | 399 | 28 | 323 |
Net changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 436 | 349 | -1,168 |
Inventories | -365 | -482 | -678 |
Trade accounts payable | 522 | -302 | 182 |
Accrued and other current liabilities | -397 | -717 | 1,444 |
Income taxes payable | -1,421 | -34 | -277 |
Noncurrent liabilities | -132 | -1,747 | -7 |
Other | 563 | -1,203 | -262 |
Net Cash Provided by Operating Activities | 11,654 | 10,022 | 12,383 |
Cash Flows from Investing Activities | ' | ' | ' |
Capital expenditures | -1,548 | -1,954 | -1,723 |
Purchases of securities and other investments | -17,991 | -12,841 | -7,325 |
Proceeds from sales of securities and other investments | 16,298 | 7,783 | 6,149 |
Proceeds from sale of interest in equity method investment | 0 | 0 | 175 |
Acquisitions of businesses, net of cash acquired | -246 | 0 | -373 |
Dispositions of businesses, net of cash divested | 46 | 0 | 323 |
Cash inflows (outflows) from net investment hedges | 350 | 39 | -86 |
Other | -57 | 168 | -30 |
Net Cash Used in Investing Activities | -3,148 | -6,805 | -2,890 |
Cash Flows from Financing Activities | ' | ' | ' |
Net change in short-term borrowings | -159 | 624 | 1,076 |
Payments on debt | -1,775 | -22 | -1,547 |
Proceeds from issuance of debt | 6,467 | 2,562 | 0 |
Purchases of treasury stock | -6,516 | -2,591 | -1,921 |
Dividends paid to stockholders | -5,157 | -5,116 | -4,691 |
Other dividends paid | -120 | -120 | -120 |
Proceeds from exercise of stock options | 1,210 | 1,310 | 321 |
Other | 60 | 86 | -22 |
Net Cash Used in Financing Activities | -5,990 | -3,267 | -6,904 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -346 | -30 | 42 |
Net Increase (Decrease) in Cash and Cash Equivalents | 2,170 | -80 | 2,631 |
Cash and Cash Equivalents at Beginning of Year | 13,451 | 13,531 | 10,900 |
Cash and Cash Equivalents at End of Year | $15,621 | $13,451 | $13,531 |
Nature_of_Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
Merck & Co., Inc. (“Merck” or “the Company”) is a global health care company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The Company’s operations are principally managed on a products basis and are comprised of four operating segments, which are the Pharmaceutical, Animal Health, Consumer Care and Alliances segments, and one reportable segment, which is the Pharmaceutical segment. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities. The Company also has animal health operations that discover, develop, manufacture and market animal health products, including vaccines, which the Company sells to veterinarians, distributors and animal producers. Additionally, the Company has consumer care operations that develop, manufacture and market over-the-counter, foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets, as well as club stores and specialty channels. |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Accounting Policies | ' |
Summary of Accounting Policies | |
Principles of Consolidation — The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. Intercompany balances and transactions are eliminated. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, by majority exposure to expected losses, residual returns or both. For those consolidated subsidiaries where Merck ownership is less than 100%, the outside shareholders’ interests are shown as Noncontrolling interests in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, such as interests in entities owned equally by the Company and a third party that are under shared control, are carried on the equity basis. | |
Mergers and Acquisitions — In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company may be required to value assets at fair value measures that do not reflect the Company’s intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Company’s consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. | |
Foreign Currency Translation — The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation account, which is included in Accumulated other comprehensive income (loss) (“AOCI”) and reflected as a separate component of equity. For those subsidiaries that operate in highly inflationary economies and for those subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes included in Other (income) expense, net. | |
Cash Equivalents — Cash equivalents are comprised of certain highly liquid investments with original maturities of less than three months. | |
Inventories — Inventories are valued at the lower of cost or market. The cost of a substantial majority of domestic pharmaceutical and vaccine inventories is determined using the last-in, first-out (“LIFO”) method for both financial reporting and tax purposes. The cost of all other inventories is determined using the first-in, first-out (“FIFO”) method. Inventories consist of currently marketed products and certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. | |
Investments — Investments in marketable debt and equity securities classified as available-for-sale are reported at fair value. Fair values of the Company’s investments are determined using quoted market prices in active markets for identical assets or liabilities or quoted prices for similar assets or liabilities or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Changes in fair value that are considered temporary are reported net of tax in Other Comprehensive Income (“OCI”). For declines in the fair value of equity securities that are considered other-than-temporary, impairment losses are charged to Other (income) expense, net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost and, for equity securities, the Company’s ability and intent to hold the investments. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in Other (income) expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in OCI. Realized gains and losses for both debt and equity securities are included in Other (income) expense, net. | |
Revenue Recognition — Revenues from sales of products are recognized at the time of delivery when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds and completion of all performance obligations. Domestically, sales discounts are issued to customers as direct discounts at the point-of-sale or indirectly through an intermediary wholesaler, known as chargebacks, or indirectly in the form of rebates. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns, which are established at the time of sale. In addition, revenues are recorded net of time value of money discounts if collection of accounts receivable is expected to be in excess of one year. Accruals for chargebacks are reflected as a direct reduction to accounts receivable and accruals for rebates are recorded as current liabilities. The accrued balances relative to the provisions for chargebacks and rebates included in Accounts receivable and Accrued and other current liabilities were $87 million and $1.6 billion, respectively, at December 31, 2013 and $120 million and $1.8 billion, respectively, at December 31, 2012. | |
The Company recognizes revenue from the sales of vaccines to the Federal government for placement into vaccine stockpiles in accordance with Securities and Exchange Commission (“SEC”) Interpretation, Commission Guidance Regarding Accounting for Sales of Vaccines and BioTerror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile. | |
Depreciation — Depreciation is provided over the estimated useful lives of the assets, principally using the straight-line method. For tax purposes, accelerated tax methods are used. The estimated useful lives primarily range from 10 to 50 years for Buildings, and from 3 to 15 years for Machinery, equipment and office furnishings. Depreciation expense was $2.2 billion in 2013, $2.0 billion in 2012 and $2.4 billion in 2011. | |
Advertising and Promotion Costs — Advertising and promotion costs are expensed as incurred. The Company recorded advertising and promotion expenses of $2.5 billion, $2.8 billion and $3.1 billion in 2013, 2012 and 2011, respectively. | |
Software Capitalization — The Company capitalizes certain costs incurred in connection with obtaining or developing internal-use software including external direct costs of material and services, and payroll costs for employees directly involved with the software development. Capitalized software costs are included in Property, plant and equipment and amortized beginning when the software project is substantially complete and the asset is ready for its intended use. Capitalized software costs associated with projects that are being amortized over 6 to 10 years (including the Company’s on-going multi-year implementation of an enterprise-wide resource planning system) were $529 million and $428 million, at December 31, 2013 and 2012, respectively. All other capitalized software costs are being amortized over periods ranging from 3 to 5 years. Costs incurred during the preliminary project stage and post-implementation stage, as well as maintenance and training costs, are expensed as incurred. | |
Goodwill — Goodwill represents the excess of the consideration transferred over the fair value of net assets of businesses purchased. Goodwill is assigned to reporting units and evaluated for impairment on at least an annual basis, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed. Based upon the Company’s most recent annual impairment test completed as of October 1, 2013, the Company concluded goodwill was not impaired. | |
Acquired Intangibles — Acquired intangibles include products and product rights, tradenames and patents, which are recorded at fair value, assigned an estimated useful life, and are amortized primarily on a straight-line basis over their estimated useful lives ranging from 3 to 40 years (see Note 7). The Company periodically evaluates whether current facts or circumstances indicate that the carrying values of its acquired intangibles may not be recoverable. If such circumstances are determined to exist, an estimate of the undiscounted future cash flows of these assets, or appropriate asset groupings, is compared to the carrying value to determine whether an impairment exists. If the asset is determined to be impaired, the loss is measured based on the difference between the carrying value of the intangible asset and its fair value, which is determined based on the net present value of estimated future cash flows. | |
In-Process Research and Development — In-process research and development (“IPR&D”) represents the fair value assigned to incomplete research projects that the Company acquires through business combinations which, at the time of acquisition, have not reached technological feasibility. The amounts are capitalized and are accounted for as indefinite-lived intangible assets, subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, Merck will make a determination as to the then useful life of the intangible asset, generally determined by the period in which the substantial majority of the cash flows are expected to be generated, and begin amortization. The Company tests IPR&D for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the IPR&D intangible asset is less than its carrying amount. If the Company concludes it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the IPR&D intangible asset with its carrying value is performed. If the fair value is less than the carrying amount, an impairment loss is recognized in operating results. | |
Research and Development — Research and development is expensed as incurred. Upfront and milestone payments due to third parties in connection with research and development collaborations prior to regulatory approval are expensed as incurred. Payments due to third parties upon or subsequent to regulatory approval are capitalized and amortized over the shorter of the remaining license or product patent life. Amounts due from collaborative partners related to development activities are generally reflected as a reduction of research and development expenses when the specific milestone has been achieved. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made. Research and development expenses include restructuring costs and IPR&D impairment charges in all periods. | |
Share-Based Compensation — The Company expenses all share-based payments to employees over the requisite service period based on the grant-date fair value of the awards. | |
Restructuring Costs — The Company records liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred. In accordance with existing benefit arrangements, employee termination costs are accrued when the restructuring actions are probable and estimable. When accruing these costs, the Company will recognize the amount within a range of costs that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company recognizes the minimum amount within the range. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. | |
Contingencies and Legal Defense Costs — The Company records accruals for contingencies and legal defense costs expected to be incurred in connection with a loss contingency when it is probable that a liability has been incurred and the amount can be reasonably estimated. | |
Taxes on Income — Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates. The Company evaluates tax positions to determine whether the benefits of tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not more likely than not of being sustained upon audit, the Company does not recognize any portion of the benefit in the financial statements. The Company recognizes interest and penalties associated with uncertain tax positions as a component of Taxes on income in the Consolidated Statement of Income. | |
Use of Estimates — The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and, accordingly, include certain amounts that are based on management’s best estimates and judgments. Estimates are used when accounting for amounts recorded in connection with mergers and acquisitions, including initial fair value determinations of assets and liabilities, primarily IPR&D and other intangible assets, as well as subsequent fair value measurements. Additionally, estimates are used in determining such items as provisions for sales discounts and returns, depreciable and amortizable lives, recoverability of inventories, including those produced in preparation for product launches, amounts recorded for contingencies, environmental liabilities and other reserves, pension and other postretirement benefit plan assumptions, share-based compensation assumptions, restructuring costs, impairments of long-lived assets (including intangible assets and goodwill) and investments, and taxes on income. Because of the uncertainty inherent in such estimates, actual results may differ from these estimates. | |
Reclassifications — Certain reclassifications have been made to prior year amounts to conform to the current year presentation. | |
Recently Adopted Accounting Standards — In the first quarter of 2013, the Company adopted guidance issued by the Financial Accounting Standards Board (the “FASB”) that simplifies how an entity tests indefinite-lived intangibles for impairment. The amended guidance allows companies to first assess qualitative factors to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. The adoption of this guidance had no impact on the Company’s financial position and results of operations. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring | ' | |||||||||||||||
Restructuring | ||||||||||||||||
2013 Restructuring Program | ||||||||||||||||
In October 2013, the Company announced a new global restructuring program (the “2013 Restructuring Program”) as part of a global initiative to sharpen its commercial and research and development focus. As part of the new program, the Company expects to reduce its total workforce by approximately 8,500 positions. These workforce reductions will primarily come from the elimination of positions in sales, administrative and headquarters organizations, as well as research and development. The Company will also reduce its global real estate footprint and continue to improve the efficiency of its manufacturing and supply network. The Company will continue to hire employees in strategic growth areas of the business as necessary. | ||||||||||||||||
The Company recorded total pretax costs of $1.2 billion in 2013 related to this restructuring program. The actions under the 2013 Restructuring Program are expected to be substantially completed by the end of 2015 with the cumulative pretax costs estimated to be approximately $2.5 billion to $3.0 billion. The Company estimates that approximately two-thirds of the cumulative pretax costs will result in cash outlays, primarily related to employee separation expense. Approximately one-third of the cumulative pretax costs are non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. | ||||||||||||||||
Merger Restructuring Program | ||||||||||||||||
In 2010, subsequent to the Merck and Schering-Plough Corporation (“Schering-Plough”) merger (the “Merger”), the Company commenced actions under a global restructuring program (the “Merger Restructuring Program”) designed to streamline the cost structure of the combined company. Further actions under this program were initiated in 2011. The actions under this program primarily reflect the elimination of positions in sales, administrative and headquarters organizations, as well as from the sale or closure of certain manufacturing and research and development sites and the consolidation of office facilities. | ||||||||||||||||
On October 1, 2013, the Company sold its active pharmaceutical ingredient (“API”) manufacturing business, including the related manufacturing facility, in the Netherlands to Aspen Holdings (“Aspen”) as part of planned manufacturing facility rationalizations under the Merger Restructuring Program. In conjunction with the sale, the parties entered into a strategic long-term supply agreement whereby Aspen will supply API to the Company and approximately 960 employees who support the API business were transferred from Merck to Aspen. Also in connection with the sale, Aspen acquired certain branded products from Merck, which transferred to Aspen effective December 31, 2013. Consideration for the transaction included cash of $705 million and notes receivable with a present value of $198 million at the time of disposition. The notes receivable consist of a $261 million note with a present value of $138 million due in 2023 and a $67.5 million note with a present value of $60 million that is payable over five years beginning on December 31, 2014. Of the cash portion of the consideration, the Company received $172 million in the fourth quarter of 2013. The remaining $533 million was received by the Company in January 2014; therefore, at December 31, 2013, this amount was recorded as a receivable within Deferred income taxes and other current assets on the Consolidated Balance Sheet. In conjunction with this transaction, the Company transferred inventory of $420 million, property, plant and equipment of $220 million and cash of $125 million to Aspen, reduced goodwill by $45 million, other intangible assets by $45 million and other assets by $23 million and recorded $90 million of transaction-related liabilities. This transaction resulted in a loss of $65 million that was recorded within Restructuring costs in 2013. | ||||||||||||||||
The Company recorded total pretax costs of $1.1 billion in 2013, $951 million in 2012 and $1.8 billion in 2011 related to this restructuring program. Since inception of the Merger Restructuring Program through December 31, 2013, Merck has recorded total pretax accumulated costs of approximately $7.2 billion and eliminated approximately 26,880 positions comprised of employee separations, as well as the elimination of contractors and vacant positions. Approximately 6,300 position eliminations remain pending under this program as of December 31, 2013, which include the remaining actions under the 2008 Restructuring Program that are now being reported as part of the Merger Restructuring Program as discussed below. The restructuring actions under the Merger Restructuring Program were substantially completed by the end of 2013, with the exception of certain actions, principally manufacturing-related. Subsequent to the Merger, the Company has rationalized a number of manufacturing sites worldwide. The remaining actions under this program will result in additional manufacturing facility rationalizations, which are expected to be substantially completed by 2016. The Company expects the estimated total cumulative pretax costs for this program to be approximately $7.4 billion to $7.7 billion. The Company estimates that approximately two-thirds of the cumulative pretax costs relate to cash outlays, primarily related to employee separation expense. Approximately one-third of the cumulative pretax costs are non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. | ||||||||||||||||
2008 Restructuring Program | ||||||||||||||||
In October 2008, Merck announced a global restructuring program (the “2008 Restructuring Program”) to reduce its cost structure, increase efficiency, and enhance competitiveness. Pretax costs of $54 million, $48 million and $45 million were recorded in 2013, 2012 and 2011, respectively, related to the 2008 Restructuring Program. Since inception of the 2008 Restructuring Program through June 30, 2013, Merck has recorded total pretax accumulated costs of $1.7 billion and eliminated approximately 6,460 positions comprised of employee separations and the elimination of contractors and vacant positions. The 2008 Restructuring Program was substantially completed in 2011, with the exception of certain manufacturing-related actions, which are expected to be completed by 2015. As of July 1, 2013, the remaining accrued liability for future separations under the 2008 Restructuring Program was transferred to the Merger Restructuring Program and any remaining activities under the 2008 Restructuring Program are now being accounted for as part of the Merger Restructuring Program. | ||||||||||||||||
For segment reporting, restructuring charges are unallocated expenses. | ||||||||||||||||
The following table summarizes the charges related to restructuring program activities by type of cost: | ||||||||||||||||
Year Ended December 31, 2013 | Separation | Accelerated | Other | Total | ||||||||||||
Costs | Depreciation | |||||||||||||||
2013 Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 186 | $ | 7 | $ | 193 | ||||||||
Marketing and administrative | — | 72 | 3 | 75 | ||||||||||||
Research and development | — | 76 | (1 | ) | 75 | |||||||||||
Restructuring costs | 866 | — | 32 | 898 | ||||||||||||
866 | 334 | 41 | 1,241 | |||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | — | 151 | 98 | 249 | ||||||||||||
Marketing and administrative | — | 63 | 3 | 66 | ||||||||||||
Research and development | — | 27 | (1 | ) | 26 | |||||||||||
Restructuring costs | 481 | — | 284 | 765 | ||||||||||||
481 | 241 | 384 | 1,106 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | (2 | ) | 6 | 4 | |||||||||||
Marketing and administrative | — | 4 | — | 4 | ||||||||||||
Restructuring costs | 34 | — | 12 | 46 | ||||||||||||
34 | 2 | 18 | 54 | |||||||||||||
$ | 1,381 | $ | 577 | $ | 443 | $ | 2,401 | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 92 | $ | 70 | $ | 162 | ||||||||
Marketing and administrative | — | 75 | 6 | 81 | ||||||||||||
Research and development | — | 53 | 4 | 57 | ||||||||||||
Restructuring costs | 497 | — | 154 | 651 | ||||||||||||
497 | 220 | 234 | 951 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | 7 | 19 | 26 | ||||||||||||
Marketing and administrative | — | 8 | 1 | 9 | ||||||||||||
Restructuring costs | (8 | ) | — | 21 | 13 | |||||||||||
(8 | ) | 15 | 41 | 48 | ||||||||||||
$ | 489 | $ | 235 | $ | 275 | $ | 999 | |||||||||
Year Ended December 31, 2011 | ||||||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 282 | $ | 17 | $ | 299 | ||||||||
Marketing and administrative | — | 108 | 11 | 119 | ||||||||||||
Research and development | — | 151 | (17 | ) | 134 | |||||||||||
Restructuring costs | 1,117 | — | 177 | 1,294 | ||||||||||||
1,117 | 541 | 188 | 1,846 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | 24 | 5 | 29 | ||||||||||||
Research and development | — | 4 | — | 4 | ||||||||||||
Restructuring costs | (6 | ) | — | 18 | 12 | |||||||||||
(6 | ) | 28 | 23 | 45 | ||||||||||||
$ | 1,111 | $ | 569 | $ | 211 | $ | 1,891 | |||||||||
Separation costs are associated with actual headcount reductions, as well as those headcount reductions which were probable and could be reasonably estimated. In 2013, approximately 1,540 positions were eliminated under the 2013 Restructuring Program. Positions eliminated under the Merger Restructuring Program were approximately 4,475 in 2013, 3,975 in 2012 and 6,880 in 2011 and positions eliminated under the 2008 Restructuring Program were approximately 55 in 2013, 155 in 2012 and 450 in 2011. These position eliminations were comprised of actual headcount reductions and the elimination of contractors and vacant positions. | ||||||||||||||||
Accelerated depreciation costs primarily relate to manufacturing, research and administrative facilities and equipment to be sold or closed as part of the programs. Accelerated depreciation costs represent the difference between the depreciation expense to be recognized over the revised useful life of the site, based upon the anticipated date the site will be closed or divested, and depreciation expense as determined utilizing the useful life prior to the restructuring actions. All of the sites have and will continue to operate up through the respective closure dates and, since future undiscounted cash flows were sufficient to recover the respective book values, Merck was required to accelerate depreciation of the site assets rather than record an impairment charge. Anticipated site closure dates, particularly related to manufacturing locations, have been and may continue to be adjusted to reflect changes resulting from regulatory or other factors. | ||||||||||||||||
Other activity in 2013, 2012 and 2011 includes $259 million, $155 million and $72 million, respectively, of asset abandonment, shut-down and other related costs. Additionally, other activity includes certain employee-related costs associated with pension and other postretirement benefit plans (see Note 13) and share-based compensation. Other activity also reflects net pretax (losses) gains resulting from sales of facilities and related assets of $(64) million in 2013 (primarily reflecting the loss on the transaction with Aspen discussed above), $28 million in 2012 and $10 million in 2011. | ||||||||||||||||
Adjustments to the recorded amounts were not material in any period. | ||||||||||||||||
The following table summarizes the charges and spending relating to restructuring activities by program: | ||||||||||||||||
Separation | Accelerated | Other | Total | |||||||||||||
Costs | Depreciation | |||||||||||||||
2013 Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
Expenses | 866 | 334 | 41 | 1,241 | ||||||||||||
(Payments) receipts, net | (121 | ) | — | 9 | (112 | ) | ||||||||||
Non-cash activity | — | (334 | ) | (27 | ) | (361 | ) | |||||||||
Restructuring reserves December 31, 2013 (1) | $ | 745 | $ | — | $ | 23 | $ | 768 | ||||||||
Merger Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2012 | $ | 1,144 | $ | — | $ | 51 | $ | 1,195 | ||||||||
Expenses | 497 | 220 | 234 | 951 | ||||||||||||
(Payments) receipts, net | (942 | ) | — | (170 | ) | (1,112 | ) | |||||||||
Non-cash activity | — | (220 | ) | (96 | ) | (316 | ) | |||||||||
Restructuring reserves December 31, 2012 | 699 | — | 19 | 718 | ||||||||||||
Expenses | 481 | 241 | 384 | 1,106 | ||||||||||||
(Payments) receipts, net | (517 | ) | — | (258 | ) | (775 | ) | |||||||||
Non-cash activity | 62 | (241 | ) | (133 | ) | (312 | ) | |||||||||
Restructuring reserves December 31, 2013 (1) | $ | 725 | $ | — | $ | 12 | $ | 737 | ||||||||
2008 Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2012 | $ | 126 | $ | — | $ | — | $ | 126 | ||||||||
Expenses | (8 | ) | 15 | 41 | 48 | |||||||||||
(Payments) receipts, net | (41 | ) | — | (21 | ) | (62 | ) | |||||||||
Non-cash activity | — | (15 | ) | (20 | ) | (35 | ) | |||||||||
Restructuring reserves December 31, 2012 | 77 | — | — | 77 | ||||||||||||
Expenses | 34 | 2 | 18 | 54 | ||||||||||||
(Payments) receipts, net | (49 | ) | — | (11 | ) | (60 | ) | |||||||||
Non-cash activity | (62 | ) | (2 | ) | (7 | ) | (71 | ) | ||||||||
Restructuring reserves December 31, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
(1) | The cash outlays associated with the 2013 Restructuring Program are expected to be substantially completed by the end of 2015. The cash outlays associated with the Merger Restructuring Program were substantially completed by the end of 2013 with the exception of certain actions, principally manufacturing-related, which are expected to be substantially completed by 2016. | |||||||||||||||
Legacy Schering-Plough Program | ||||||||||||||||
Prior to the Merger, Schering-Plough commenced a Productivity Transformation Program which was designed to reduce and avoid costs and increase productivity. During 2011, the Company recorded $20 million of accelerated depreciation costs included in Materials and production costs for this program which was substantially complete at the end of 2011. |
Acquisitions_Divestitures_Rese
Acquisitions, Divestitures, Research Collaborations and License Agreements Acquisitions, Divestitures, Research Collaborations and License Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions Divestitures Research Collaborations And License Agreements | ' |
Acquisitions, Divestitures, Research Collaborations and License Agreements | |
The Company continues its strategy of establishing external alliances to complement its substantial internal research capabilities, including research collaborations, licensing preclinical and clinical compounds and technology platforms to drive both near- and long-term growth. The Company supplements its internal research with a licensing and external alliance strategy focused on the entire spectrum of collaborations from early research to late-stage compounds. These arrangements often include upfront payments and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development, as well as expense reimbursements or payments to the third party. | |
In September 2013, Merck and AstraZeneca announced a worldwide out-licensing agreement for Merck’s oral small molecule inhibitor of WEE1 kinase (MK-1775). MK-1775 is currently being evaluated in Phase 2a clinical studies in combination with standard-of-care therapies for the treatment of patients with certain types of ovarian cancer. Under the terms of the agreement, AstraZeneca paid Merck a $50 million upfront fee, which the Company recorded as revenue. In addition, Merck will be eligible to receive future payments tied to development and regulatory milestones, plus sales-related payments and tiered royalties. AstraZeneca will be responsible for all future clinical development, manufacturing and marketing. | |
In April 2013, Merck and Pfizer Inc. (“Pfizer”) announced that they had entered into a worldwide (except Japan) collaboration agreement for the development and commercialization of Pfizer’s ertugliflozin, an investigational oral sodium glucose cotransporter (“SGLT2”) inhibitor being evaluated for the treatment of type 2 diabetes. The Company has initiated Phase 3 clinical trials for ertugliflozin with Pfizer. Under the terms of the agreement, Merck and Pfizer will collaborate on the clinical development and commercialization of ertugliflozin and ertugliflozin-containing fixed-dose combinations with metformin and with Januvia (sitagliptin) tablets. Merck will continue to retain the rights to its existing portfolio of sitagliptin-containing products. Through the end of 2013, Merck recorded research and development expenses of $125 million for upfront and milestone payments made to Pfizer. Pfizer will be eligible for additional payments associated with the achievement of pre-specified future clinical, regulatory and commercial milestones. The companies will share potential revenues and certain costs 60% to Merck and 40% to Pfizer. Each party will have certain manufacturing and supply obligations. The Company and Pfizer each have the right to terminate the agreement due to a material, uncured breach by, or insolvency of, the other party, or in the event of a safety issue. Pfizer has the right to terminate the agreement upon 12 months notice at any time following the first anniversary of the first commercial sale of a collaboration product, but must assign all rights to ertugliflozin to Merck. Upon termination of the agreement, depending upon the circumstances, the parties have varying rights and obligations with respect to the continued development and commercialization of ertugliflozin and certain payment obligations. | |
In February 2013, Merck and Supera Farma Laboratorios S.A. (“Supera”), a Brazilian pharmaceutical company co-owned by Cristália and Eurofarma, established the previously announced joint venture that markets, distributes and sells a portfolio of pharmaceutical and branded generic products from Merck, Cristália and Eurofarma in Brazil. Merck owns 51% of the joint venture, and Cristália and Eurofarma collectively own 49%. The transaction was accounted for as an acquisition of a business; accordingly, the assets acquired and liabilities assumed were recorded at their respective fair values. This resulted in Merck recognizing intangible assets for currently marketed products of $89 million, IPR&D of $100 million, goodwill of $103 million, and deferred tax liabilities of $64 million. The Company also recorded increases to Noncontrolling interests and Other paid-in capital in the amounts of $112 million and $116 million, respectively. This transaction closed on February 1, 2013, and accordingly, the results of operations of the acquired business have been included in the Company’s results of operations beginning after that date. During the fourth quarter of 2013, as a result of changes in cash flows assumptions for certain compounds, the Company recorded $15 million of impairment charges related to the IPR&D recorded in the Supera transaction. | |
In October 2012, Merck and AiCuris entered into an exclusive licensing agreement which provides Merck with worldwide rights to develop and commercialize candidates in AiCuris’ novel portfolio of investigational medicines targeting human cytomegalovirus (“HCMV”), including letermovir (MK-8228), an oral, late-stage antiviral candidate being investigated for the treatment and prevention of HCMV infection in transplant recipients. AiCuris received an upfront payment of €110 million (approximately $140 million), which the Company recorded as research and development expense, and is eligible for milestone payments of up to €332.5 million based on successful achievement of development, regulatory and commercialization goals for HCMV candidates, including letermovir, an additional back-up candidate as well as other Phase 1 candidates designed to act via an alternate mechanism. In addition, AiCuris will be entitled to receive royalty payments reflecting the advanced stage of the clinical program on any potential products that result from the agreement. Merck will be responsible for all development activities and costs. The agreement may be terminated by either party in the event of a material uncured breach or insolvency. The agreement may be terminated by Merck at any time in the event that any of the compounds licensed from AiCuris develop an adverse safety profile or any material adverse issue arises related to the development, efficacy or dosing regimen of any of the compounds, and/or in the event that certain patents are invalid and/or unenforceable in certain jurisdictions. Merck (i) may terminate the agreement with respect to certain compounds after successful completion of the first proof of concept clinical trial or (ii) must terminate the agreement with respect to certain compounds if Merck fails to minimally invest in such compounds. In addition, Merck may terminate the agreement as a whole at any time upon six months prior written notice at any time after completion of the first Phase 3 clinical trial for a compound. AiCuris may terminate the agreement in the event that Merck challenges any AiCuris patent covering the compounds licensed from AiCuris. Upon termination of the agreement, depending upon the circumstances, the parties have varying rights and obligations with respect to the continued development and commercialization of compounds and, in the case of termination for cause by Merck, certain royalty obligations. | |
In April 2012, the Company entered into an agreement with Endocyte, Inc. (“Endocyte”) to develop and commercialize Endocyte’s novel investigational therapeutic candidate vintafolide (MK-8109). Vintafolide is currently being evaluated in a Phase 3 clinical trial for folate-receptor positive platinum-resistant ovarian cancer (PROCEED) and a Phase 2 trial for non-small cell lung cancer. Under the agreement, Merck gained worldwide rights to develop and commercialize vintafolide. Endocyte received a $120 million upfront payment, which the Company recorded as research and development expense, and is eligible for milestone payments of up to $880 million based on the successful achievement of development, regulatory and commercialization goals for vintafolide for a total of six cancer indications. In addition, if vintafolide receives regulatory approval, Merck and Endocyte will share equally profits and losses in the United States. Endocyte will receive a royalty on sales of the product in the rest of the world. Endocyte has retained the right to co-promote vintafolide with Merck in the United States and Merck has the exclusive right to promote vintafolide in the rest of world. Endocyte will be responsible for the majority of funding and completion of the PROCEED trial. Merck will be responsible for all other development activities and development costs and have all decision rights for vintafolide. Merck has the right to terminate the agreement on 90 days notice. Merck and Endocyte both have the right to terminate the agreement due to the material breach or insolvency of the other party. Endocyte has the right to terminate the agreement in the event that Merck challenges an Endocyte patent right relating to vintafolide. Upon termination of the agreement, depending upon the circumstances, the parties have varying rights and obligations with respect to the continued development and commercialization of vintafolide and, in the case of termination for cause by Merck, certain royalty obligations and U.S. profit and loss sharing. | |
In May 2011, Merck completed the acquisition of Inspire Pharmaceuticals, Inc. (“Inspire”), a specialty pharmaceutical company focused on developing and commercializing ophthalmic products. Under the terms of the merger agreement, Merck acquired all outstanding shares of common stock of Inspire at a price of $5.00 per share in cash for a total of approximately $420 million. The transaction was accounted for as an acquisition of a business; accordingly, the assets acquired and liabilities assumed were recorded at their respective fair values as of the acquisition date. The determination of fair value requires management to make significant estimates and assumptions. In connection with the acquisition, substantially all of the purchase price was allocated to Inspire’s product and product right intangible assets and related deferred tax liabilities, a deferred tax asset relating to Inspire’s net operating loss carryforwards, and goodwill. In November 2013, Merck sold the U.S. rights to certain ophthalmic products to Akorn, Inc., including AzaSite which was acquired from Inspire in this transaction. | |
In March 2011, the Company sold the Merck BioManufacturing Network, a provider of contract manufacturing and development services for the biopharmaceutical industry and wholly owned by Merck, to Fujifilm Corporation (“Fujifilm”). Under the terms of the agreement, Fujifilm purchased all of the equity interests in two Merck subsidiaries which together owned all of the assets of the Merck BioManufacturing Network comprising facilities located in Research Triangle Park, North Carolina and Billingham, United Kingdom. As part of the agreement with Fujifilm, Merck committed to purchase certain development and manufacturing services at fair value from Fujifilm over a three-year period following the closing of the transaction. The transaction resulted in a gain of $127 million in 2011 reflected in Other (income) expense, net. | |
Remicade/Simponi | |
In 1998, a subsidiary of Schering-Plough entered into a licensing agreement with Centocor Ortho Biotech Inc. (“Centocor”), a Johnson & Johnson (“J&J”) company, to market Remicade, which is prescribed for the treatment of inflammatory diseases. In 2005, Schering-Plough’s subsidiary exercised an option under its contract with Centocor for license rights to develop and commercialize Simponi, a fully human monoclonal antibody. The Company has exclusive marketing rights to both products throughout Europe, Russia and Turkey. In December 2007, Schering-Plough and Centocor revised their distribution agreement regarding the development, commercialization and distribution of both Remicade and Simponi, extending the Company’s rights to exclusively market Remicade to match the duration of the Company’s exclusive marketing rights for Simponi. In addition, Schering-Plough and Centocor agreed to share certain development costs relating to Simponi’s auto-injector delivery system. On October 6, 2009, the European Commission approved Simponi as a treatment for rheumatoid arthritis and other immune system disorders in two presentations — a novel auto-injector and a prefilled syringe. As a result, the Company’s marketing rights for both products extend for 15 years from the first commercial sale of Simponi in the European Union (the “EU”) following the receipt of pricing and reimbursement approval within the EU. All profits derived from Merck’s exclusive distribution of the two products are equally divided between Merck and J&J. In April 2011, in connection with an agreement between Merck and J&J to amend the agreement governing the distribution rights to Remicade and Simponi, J&J received a one-time payment from Merck of $500 million, which the Company recorded as a charge to Other (income) expense, net in 2011. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||
The Company manages the impact of foreign exchange rate movements and interest rate movements on its earnings, cash flows and fair values of assets and liabilities through operational means and through the use of various financial instruments, including derivative instruments. | ||||||||||||||||||||||||||||||||
A significant portion of the Company’s revenues and earnings in foreign affiliates is exposed to changes in foreign exchange rates. The objectives and accounting related to the Company’s foreign currency risk management program, as well as its interest rate risk management activities are discussed below. | ||||||||||||||||||||||||||||||||
Foreign Currency Risk Management | ||||||||||||||||||||||||||||||||
The Company has established revenue hedging, balance sheet risk management and net investment hedging programs to protect against volatility of future foreign currency cash flows and changes in fair value caused by volatility in foreign exchange rates. | ||||||||||||||||||||||||||||||||
The objective of the revenue hedging program is to reduce the potential for longer-term unfavorable changes in foreign exchange rates to decrease the U.S. dollar value of future cash flows derived from foreign currency denominated sales, primarily the euro and Japanese yen. To achieve this objective, the Company will hedge a portion of its forecasted foreign currency denominated third-party and intercompany distributor entity sales that are expected to occur over its planning cycle, typically no more than three years into the future. The Company will layer in hedges over time, increasing the portion of third-party and intercompany distributor entity sales hedged as it gets closer to the expected date of the forecasted foreign currency denominated sales. The portion of sales hedged is based on assessments of cost-benefit profiles that consider natural offsetting exposures, revenue and exchange rate volatilities and correlations, and the cost of hedging instruments. The hedged anticipated sales are a specified component of a portfolio of similarly denominated foreign currency-based sales transactions, each of which responds to the hedged currency risk in the same manner. The Company manages its anticipated transaction exposure principally with purchased local currency put options, which provide the Company with a right, but not an obligation, to sell foreign currencies in the future at a predetermined price. If the U.S. dollar strengthens relative to the currency of the hedged anticipated sales, total changes in the options’ cash flows offset the decline in the expected future U.S. dollar equivalent cash flows of the hedged foreign currency sales. Conversely, if the U.S. dollar weakens, the options’ value reduces to zero, but the Company benefits from the increase in the U.S. dollar equivalent value of the anticipated foreign currency cash flows. | ||||||||||||||||||||||||||||||||
In connection with the Company’s revenue hedging program, a purchased collar option strategy may be utilized. With a purchased collar option strategy, the Company writes a local currency call option and purchases a local currency put option. As compared to a purchased put option strategy alone, a purchased collar strategy reduces the upfront costs associated with purchasing puts through the collection of premium by writing call options. If the U.S. dollar weakens relative to the currency of the hedged anticipated sales, the purchased put option value of the collar strategy reduces to zero and the Company benefits from the increase in the U.S. dollar equivalent value of its anticipated foreign currency cash flows, however this benefit would be capped at the strike level of the written call. If the U.S. dollar strengthens relative to the currency of the hedged anticipated sales, the written call option value of the collar strategy reduces to zero and the changes in the purchased put cash flows of the collar strategy would offset the decline in the expected future U.S. dollar equivalent cash flows of the hedged foreign currency sales. | ||||||||||||||||||||||||||||||||
The Company may also utilize forward contracts in its revenue hedging program. If the U.S. dollar strengthens relative to the currency of the hedged anticipated sales, the increase in the fair value of the forward contracts offsets the decrease in the expected future U.S. dollar cash flows of the hedged foreign currency sales. Conversely, if the U.S. dollar weakens, the decrease in the fair value of the forward contracts offsets the increase in the value of the anticipated foreign currency cash flows. | ||||||||||||||||||||||||||||||||
The fair values of these derivative contracts are recorded as either assets (gain positions) or liabilities (loss positions) in the Consolidated Balance Sheet. Changes in the fair value of derivative contracts are recorded each period in either current earnings or OCI, depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in AOCI and reclassified into Sales when the hedged anticipated revenue is recognized. The hedge relationship is highly effective and hedge ineffectiveness has been de minimis. For those derivatives which are not designated as cash flow hedges, but serve as economic hedges of forecasted sales, unrealized gains or losses are recorded in Sales each period. The cash flows from both designated and non-designated contracts are reported as operating activities in the Consolidated Statement of Cash Flows. The Company does not enter into derivatives for trading or speculative purposes. | ||||||||||||||||||||||||||||||||
The primary objective of the balance sheet risk management program is to mitigate the exposure of foreign currency denominated net monetary assets of foreign subsidiaries where the U.S. dollar is the functional currency from the effects of volatility in foreign exchange. In these instances, Merck principally utilizes forward exchange contracts, which enable the Company to buy and sell foreign currencies in the future at fixed exchange rates and economically offset the consequences of changes in foreign exchange from the monetary assets. Merck routinely enters into contracts to offset the effects of exchange on exposures denominated in developed country currencies, primarily the euro and Japanese yen. For exposures in developing country currencies, the Company will enter into forward contracts to partially offset the effects of exchange on exposures when it is deemed economical to do so based on a cost-benefit analysis that considers the magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instrument. The Company will also minimize the effect of exchange on monetary assets and liabilities by managing operating activities and net asset positions at the local level. | ||||||||||||||||||||||||||||||||
Monetary assets and liabilities denominated in a currency other than the functional currency of a given subsidiary are remeasured at spot rates in effect on the balance sheet date with the effects of changes in spot rates reported in Other (income) expense, net. The forward contracts are not designated as hedges and are marked to market through Other (income) expense, net. Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the remeasured assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. These differences are not significant due to the short-term nature of the contracts, which typically have average maturities at inception of less than one year. | ||||||||||||||||||||||||||||||||
The Company also uses forward exchange contracts to hedge its net investment in foreign operations against movements in exchange rates. The forward contracts are designated as hedges of the net investment in a foreign operation. The Company hedges a portion of the net investment in certain of its foreign operations and measures ineffectiveness based upon changes in spot foreign exchange rates. The effective portion of the unrealized gains or losses on these contracts is recorded in foreign currency translation adjustment within OCI, and remains in AOCI until either the sale or complete or substantially complete liquidation of the subsidiary. The cash flows from these contracts are reported as investing activities in the Consolidated Statement of Cash Flows. | ||||||||||||||||||||||||||||||||
Foreign exchange risk is also managed through the use of foreign currency debt. The Company’s senior unsecured euro-denominated notes have been designated as, and are effective as, economic hedges of the net investment in a foreign operation. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in foreign currency translation adjustment within OCI. Included in the cumulative translation adjustment are pretax losses of $84 million in 2013 and $31 million in 2012 and pretax gains of $6 million in 2011 from the euro-denominated notes. | ||||||||||||||||||||||||||||||||
Interest Rate Risk Management | ||||||||||||||||||||||||||||||||
The Company may use interest rate swap contracts on certain investing and borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. The Company does not use leveraged swaps and, in general, does not leverage any of its investment activities that would put principal capital at risk. | ||||||||||||||||||||||||||||||||
During 2013, the Company entered into 15 pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes. There are four swaps maturing in 2016 with notional amounts of $250 million each that effectively convert the Company’s 0.70% fixed-rate notes due in 2016 to floating-rate instruments; four swaps maturing in 2018 with notional amounts of $250 million each that effectively convert the Company’s 1.30% fixed-rate notes due in 2018 to floating-rate instruments; four swaps maturing in 2017, one with a notional amount of $200 million, two with notional amounts of $250 million each, and one with a notional amount of $300 million, that effectively convert the Company’s 6.00% fixed-rate notes due in 2017 to floating-rate instruments; and three swaps maturing in 2019, two with notional amounts of $200 million each, and one with a notional amount of $150 million, that effectively convert a portion of the Company’s 5.00% notes due in 2019 to floating rate instruments. The interest rate swap contracts are designated hedges of the fair value changes in the notes attributable to changes in the benchmark London Interbank Offered Rate (“LIBOR”) swap rate. The fair value changes in the notes attributable to changes in the LIBOR are recorded in interest expense and offset by the fair value changes in the swap contracts. The cash flows from these contracts are reported as operating activities in the Consolidated Statement of Cash Flows. | ||||||||||||||||||||||||||||||||
There were no interest rate swaps outstanding as of December 31, 2012. During 2011, the Company terminated pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes. These swaps effectively converted certain of its fixed-rate notes to floating-rate instruments. The interest rate swap contracts were designated hedges of the fair value changes in the notes attributable to changes in the benchmark LIBOR swap rate. As a result of the swap terminations, the Company received $288 million in cash, which included $43 million in accrued interest. The corresponding $245 million basis adjustment of the debt associated with the terminated interest rate swap contracts was deferred and is being amortized as a reduction of interest expense over the respective term of the notes. The cash flows from these contracts are reported as operating activities in the Consolidated Statement of Cash Flows. | ||||||||||||||||||||||||||||||||
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair Value of | U.S. Dollar | Fair Value of | U.S. Dollar | |||||||||||||||||||||||||||||
Derivative | Notional | Derivative | Notional | |||||||||||||||||||||||||||||
Balance Sheet Caption | Asset | Liability | Asset | Liability | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Interest rate swap contracts (non-current) | Other assets | $ | 13 | $ | — | $ | 1,550 | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest rate swap contracts (non-current) | Other noncurrent liabilities | — | 25 | 2,000 | — | — | — | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Deferred income taxes and other current assets | 493 | — | 4,427 | 281 | — | 6,646 | |||||||||||||||||||||||||
Foreign exchange contracts (non-current) | Other assets | 515 | — | 6,676 | 387 | — | 5,989 | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Accrued and other current liabilities | — | 19 | 1,659 | — | 13 | 938 | |||||||||||||||||||||||||
$ | 1,021 | $ | 44 | $ | 16,312 | $ | 668 | $ | 13 | $ | 13,573 | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Foreign exchange contracts (current) | Deferred income taxes and other current assets | $ | 69 | $ | — | $ | 5,705 | $ | 55 | $ | — | $ | 4,548 | |||||||||||||||||||
Foreign exchange contracts (non-current) | Other assets | — | — | — | 8 | — | 232 | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Accrued and other current liabilities | — | 140 | 7,892 | — | 216 | 8,203 | |||||||||||||||||||||||||
$ | 69 | $ | 140 | $ | 13,597 | $ | 63 | $ | 216 | $ | 12,983 | |||||||||||||||||||||
$ | 1,090 | $ | 184 | $ | 29,909 | $ | 731 | $ | 229 | $ | 26,556 | |||||||||||||||||||||
As noted above, the Company records its derivatives on a gross basis in the Consolidated Balance Sheet. The Company has master netting agreements with several of its financial institution counterparties (see Concentrations of Credit Risk below). The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes at December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||
Gross amounts recognized in the consolidated balance sheet | $ | 1,090 | $ | 184 | $ | 731 | $ | 229 | ||||||||||||||||||||||||
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet | (147 | ) | (147 | ) | (195 | ) | (195 | ) | ||||||||||||||||||||||||
Cash collateral (received) posted | (652 | ) | — | (305 | ) | — | ||||||||||||||||||||||||||
Net amounts | $ | 291 | $ | 37 | $ | 231 | $ | 34 | ||||||||||||||||||||||||
The table below provides information on the location and pretax gain or loss amounts for derivatives that are: (i) designated in a fair value hedging relationship, (ii) designated in a foreign currency cash flow hedging relationship, (iii) designated in a foreign currency net investment hedging relationship and (iv) not designated in a hedging relationship: | ||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Derivatives designated in a fair value hedging relationship | ||||||||||||||||||||||||||||||||
Interest rate swap contracts | ||||||||||||||||||||||||||||||||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (1) | $ | 12 | $ | — | $ | (196 | ) | |||||||||||||||||||||||||
Amount of (gain) loss recognized in Other (income) expense, net on hedged item (1) | (14 | ) | — | 196 | ||||||||||||||||||||||||||||
Derivatives designated in foreign currency cash flow hedging relationships | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of loss reclassified from AOCI to Sales | 45 | 50 | 85 | |||||||||||||||||||||||||||||
Amount of (gain) loss recognized in OCI on derivatives | (306 | ) | 204 | 143 | ||||||||||||||||||||||||||||
Derivatives designated in foreign currency net investment hedging relationships | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of gain recognized in Other (income) expense, net on derivatives (2) | (10 | ) | (20 | ) | (10 | ) | ||||||||||||||||||||||||||
Amount of (gain) loss recognized in OCI on derivatives | (363 | ) | (208 | ) | 122 | |||||||||||||||||||||||||||
Derivatives not designated in a hedging relationship | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (3) | 183 | 382 | (113 | ) | ||||||||||||||||||||||||||||
Amount of loss recognized in Sales | 8 | 30 | — | |||||||||||||||||||||||||||||
(1) | There was $2 million of ineffectiveness on the hedge during 2013. | |||||||||||||||||||||||||||||||
(2) | There was no ineffectiveness on the hedge. Represents the amount excluded from hedge effectiveness testing. | |||||||||||||||||||||||||||||||
(3) | These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. | |||||||||||||||||||||||||||||||
At December 31, 2013, the Company estimates $66 million of pretax net unrealized gains on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCI to Sales. The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity. | ||||||||||||||||||||||||||||||||
Investments in Debt and Equity Securities | ||||||||||||||||||||||||||||||||
Information on available-for-sale investments at December 31 is as follows: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair | Amortized | Gross Unrealized | Fair | Amortized | Gross Unrealized | |||||||||||||||||||||||||||
Value | Cost | Gains | Losses | Value | Cost | Gains | Losses | |||||||||||||||||||||||||
Corporate notes and bonds | $ | 7,054 | $ | 7,037 | $ | 32 | $ | (15 | ) | $ | 5,063 | $ | 5,013 | $ | 52 | $ | (2 | ) | ||||||||||||||
Asset-backed securities | 1,300 | 1,303 | 1 | (4 | ) | 837 | 835 | 3 | (1 | ) | ||||||||||||||||||||||
U.S. government and agency securities | 1,236 | 1,239 | 1 | (4 | ) | 1,206 | 1,204 | 2 | — | |||||||||||||||||||||||
Commercial paper | 1,206 | 1,206 | — | — | 2,150 | 2,150 | — | — | ||||||||||||||||||||||||
Mortgage-backed securities | 476 | 479 | 2 | (5 | ) | 435 | 436 | 2 | (3 | ) | ||||||||||||||||||||||
Foreign government bonds | 125 | 126 | — | (1 | ) | 108 | 107 | 1 | — | |||||||||||||||||||||||
Equity securities | 471 | 397 | 74 | — | 403 | 370 | 33 | — | ||||||||||||||||||||||||
$ | 11,868 | $ | 11,787 | $ | 110 | $ | (29 | ) | $ | 10,202 | $ | 10,115 | $ | 93 | $ | (6 | ) | |||||||||||||||
Available-for-sale debt securities included in Short-term investments totaled $1.9 billion at December 31, 2013. Of the remaining debt securities, $8.8 billion mature within five years. At December 31, 2013 and 2012, there were no debt securities pledged as collateral. | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest: | ||||||||||||||||||||||||||||||||
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity. Level 3 assets are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as instruments for which the determination of fair value requires significant judgment or estimation. | ||||||||||||||||||||||||||||||||
If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis at December 31 are summarized below: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Corporate notes and bonds | $ | — | $ | 7,054 | $ | — | $ | 7,054 | $ | — | $ | 5,063 | $ | — | $ | 5,063 | ||||||||||||||||
Asset-backed securities (1) | — | 1,300 | — | 1,300 | — | 837 | — | 837 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 1,236 | — | 1,236 | — | 1,206 | — | 1,206 | ||||||||||||||||||||||||
Commercial paper | — | 1,206 | — | 1,206 | — | 2,150 | — | 2,150 | ||||||||||||||||||||||||
Mortgage-backed securities (1) | — | 476 | — | 476 | — | 435 | — | 435 | ||||||||||||||||||||||||
Foreign government bonds | — | 125 | — | 125 | — | 108 | — | 108 | ||||||||||||||||||||||||
Equity securities | 238 | — | — | 238 | 196 | — | — | 196 | ||||||||||||||||||||||||
238 | 11,397 | — | 11,635 | 196 | 9,799 | — | 9,995 | |||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||
Securities held for employee compensation | 186 | 47 | — | 233 | 169 | 38 | — | 207 | ||||||||||||||||||||||||
Derivative assets (2) | ||||||||||||||||||||||||||||||||
Purchased currency options | — | 868 | — | 868 | — | 546 | — | 546 | ||||||||||||||||||||||||
Forward exchange contracts | — | 209 | — | 209 | — | 185 | — | 185 | ||||||||||||||||||||||||
Interest rate swaps | — | 13 | — | 13 | — | — | — | — | ||||||||||||||||||||||||
— | 1,090 | — | 1,090 | — | 731 | — | 731 | |||||||||||||||||||||||||
Total assets | $ | 424 | $ | 12,534 | $ | — | $ | 12,958 | $ | 365 | $ | 10,568 | $ | — | $ | 10,933 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities (2) | ||||||||||||||||||||||||||||||||
Forward exchange contracts | $ | — | $ | 134 | $ | — | $ | 134 | $ | — | $ | 216 | $ | — | $ | 216 | ||||||||||||||||
Written currency options | — | 25 | — | 25 | — | 13 | — | 13 | ||||||||||||||||||||||||
Interest rate swaps | — | 25 | — | 25 | — | — | — | — | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | 184 | $ | — | $ | 184 | $ | — | $ | 229 | $ | — | $ | 229 | ||||||||||||||||
(1) | Primarily all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AAA and Moody’s Investors Service rating of Aaa), secured primarily by credit card, auto loan, and home equity receivables, with weighted-average lives of primarily 5 years or less. Mortgage-backed securities represent AAA-rated securities issued or unconditionally guaranteed as to payment of principal and interest by U.S. government agencies. | |||||||||||||||||||||||||||||||
(2) | The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant. | |||||||||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 during 2013. As of December 31, 2013, Cash and cash equivalents of $15.6 billion included $14.7 billion of cash equivalents (considered Level 2 in the fair value hierarchy). The Company has liabilities related to contingent consideration (considered Level 3 in the fair value hierarchy) associated with business combinations, the fair values of which were $69 million and $49 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
Other Fair Value Measurements | ||||||||||||||||||||||||||||||||
Some of the Company’s financial instruments, such as cash and cash equivalents, receivables and payables, are reflected in the balance sheet at carrying value, which approximates fair value due to their short-term nature. | ||||||||||||||||||||||||||||||||
The estimated fair value of loans payable and long-term debt (including current portion) at December 31, 2013, was $25.5 billion compared with a carrying value of $25.1 billion and at December 31, 2012, was $22.8 billion compared with a carrying value of $20.6 billion. Fair value was estimated using recent observable market prices and would be considered Level 2 in the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||
On an ongoing basis, the Company monitors concentrations of credit risk associated with corporate and government issuers of securities and financial institutions with which it conducts business. Credit exposure limits are established to limit a concentration with any single issuer or institution. Cash and investments are placed in instruments that meet high credit quality standards, as specified in the Company’s investment policy guidelines. Approximately one-third of the Company’s cash and cash equivalents are invested in five highly rated money market funds. | ||||||||||||||||||||||||||||||||
The majority of the Company’s accounts receivable arise from product sales in the United States and Europe and are primarily due from drug wholesalers and retailers, hospitals, government agencies, managed health care providers and pharmacy benefit managers. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company also continues to monitor economic conditions, including the volatility associated with international sovereign economies, and associated impacts on the financial markets and its business, taking into consideration global economic conditions and the ongoing sovereign debt issues in certain European countries. The Company continues to monitor the credit and economic conditions within Greece, Italy, Spain and Portugal, among other members of the EU. These economic conditions, as well as inherent variability of timing of cash receipts, have resulted in, and may continue to result in, an increase in the average length of time that it takes to collect accounts receivable outstanding. As such, time value of money discounts have been recorded for those customers for which collection of accounts receivable is expected to be in excess of one year. At December 31, 2013 and 2012, Other assets included $275 million and $473 million, respectively, of accounts receivable not expected to be collected within one year. The Company does not expect to have write-offs or adjustments to accounts receivable which would have a material adverse effect on its financial position, liquidity or results of operations. | ||||||||||||||||||||||||||||||||
As of December 31, 2013, the Company’s accounts receivable in Greece, Italy, Spain and Portugal totaled approximately $900 million. Of this amount, hospital and public sector receivables were approximately $600 million in the aggregate, of which approximately 9%, 41%, 40% and 10% related to Greece, Italy, Spain and Portugal, respectively. As of December 31, 2013, the Company’s total accounts receivable outstanding for more than one year were approximately $200 million, of which approximately 50% related to accounts receivable in Greece, Italy, Spain and Portugal, mostly comprised of hospital and public sector receivables. | ||||||||||||||||||||||||||||||||
During 2013, the Company completed non-recourse factorings of approximately $210 million of hospital and public sector receivables in Spain. During 2012, the Company collected approximately $500 million of accounts receivable in connection with the Spanish government’s debt stabilization/stimulus plan. In addition, the Company completed non-recourse factorings of approximately $230 million in 2012 of hospital and public sector accounts receivable in Italy. | ||||||||||||||||||||||||||||||||
Additionally, the Company continues to expand in the emerging markets. Payment terms in these markets tend to be longer, resulting in an increase in accounts receivable balances in certain of these markets. | ||||||||||||||||||||||||||||||||
The Company’s customers with the largest accounts receivable balances are: AmerisourceBergen Corporation, Cardinal Health, Inc., McKesson Corporation, Zuellig Pharma Ltd. (Asia Pacific) and Alliance Healthcare, which represented, in aggregate, approximately one-fourth of total accounts receivable at December 31, 2013. The Company monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. Bad debts have been minimal. The Company does not normally require collateral or other security to support credit sales. | ||||||||||||||||||||||||||||||||
Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements. The master agreements with several of the Company’s financial institution counterparties also include credit support annexes. These annexes contain provisions that require collateral to be exchanged depending on the value of the derivative assets and liabilities, the Company’s credit rating, and the credit rating of the counterparty. As of December 31, 2013 and 2012, the Company had received cash collateral of $652 million and $305 million, respectively, from various counterparties and the obligation to return such collateral is recorded in Accrued and other current liabilities. The Company had not advanced any cash collateral to counterparties as of December 31, 2013 or 2012. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories at December 31 consisted of: | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 1,738 | $ | 1,924 | ||||
Raw materials and work in process | 5,894 | 5,921 | ||||||
Supplies | 225 | 244 | ||||||
Total (approximates current cost) | 7,857 | 8,089 | ||||||
Increase to LIFO costs | 73 | 52 | ||||||
$ | 7,930 | $ | 8,141 | |||||
Recognized as: | ||||||||
Inventories | $ | 6,226 | $ | 6,535 | ||||
Other assets | 1,704 | 1,606 | ||||||
Inventories valued under the LIFO method comprised approximately $2.3 billion and $2.1 billion of inventories at December 31, 2013 and 2012, respectively. Amounts recognized as Other assets are comprised almost entirely of raw materials and work in process inventories. At December 31, 2013 and 2012, these amounts included $1.5 billion and $1.4 billion, respectively, of inventories not expected to be sold within one year. In addition, these amounts included $177 million and $196 million at December 31, 2013 and 2012, respectively, of inventories produced in preparation for product launches. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangibles | ' | |||||||||||||||||||||||
Goodwill and Other Intangibles | ||||||||||||||||||||||||
The following table summarizes goodwill activity by segment: | ||||||||||||||||||||||||
Pharmaceutical | All Other | Total | ||||||||||||||||||||||
Goodwill balance January 1, 2012 | $ | 10,107 | $ | 2,048 | $ | 12,155 | ||||||||||||||||||
Other (1) | (21 | ) | — | (21 | ) | |||||||||||||||||||
Goodwill balance December 31, 2012 | 10,086 | 2,048 | 12,134 | |||||||||||||||||||||
Acquisitions | 103 | 188 | 291 | |||||||||||||||||||||
Divestitures | (45 | ) | — | (45 | ) | |||||||||||||||||||
Other (1) | (79 | ) | — | (79 | ) | |||||||||||||||||||
Goodwill balance December 31, 2013 | $ | 10,065 | $ | 2,236 | $ | 12,301 | ||||||||||||||||||
(1) Other includes cumulative translation adjustments on goodwill balances and certain other adjustments. | ||||||||||||||||||||||||
The additions to Pharmaceutical segment goodwill in 2013 resulted from the formation of the Supera joint venture (see Note 4) and the reductions resulted from the divestiture of the Company’s API manufacturing business and related branded products (see Note 3). | ||||||||||||||||||||||||
In July 2013, the Company acquired the remaining shares of Physicians Interactive, a provider of on-line and mobile clinical resources and solutions for health care professionals in which Merck had an existing 24% ownership interest, for $97 million. In November 2013, Merck acquired Health Management Resources Corporation, a leader in medical weight management, for $87 million. These transactions collectively resulted in the addition of approximately $175 million of goodwill during 2013 included in other segments. Pro forma financial information has not been included for these transactions because the historical financial results are not significant when compared with the Company’s financial results. | ||||||||||||||||||||||||
Other intangibles at December 31 consisted of: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Products and product rights | $ | 41,691 | $ | 21,216 | $ | 20,475 | $ | 41,932 | $ | 16,678 | $ | 25,254 | ||||||||||||
In-process research and development | 1,856 | — | 1,856 | 2,393 | — | 2,393 | ||||||||||||||||||
Tradenames | 1,632 | 310 | 1,322 | 1,521 | 236 | 1,285 | ||||||||||||||||||
Other | 958 | 810 | 148 | 896 | 745 | 151 | ||||||||||||||||||
$ | 46,137 | $ | 22,336 | $ | 23,801 | $ | 46,742 | $ | 17,659 | $ | 29,083 | |||||||||||||
Acquired intangibles include products and product rights, tradenames and patents, which are recorded at fair value, assigned an estimated useful life, and are amortized primarily on a straight-line basis over their estimated useful lives. Some of the Company’s more significant acquired intangibles related to marketed products at December 31, 2013 include Zetia, $4.7 billion; Vytorin, $2.6 billion; Nasonex, $1.3 billion, Claritin, $1.5 billion, NuvaRing, $867 million, as well as $1.3 billion in the aggregate related to several products marketed for the treatment of chronic hepatitis C (Victrelis, PegIntron and Rebetol). | ||||||||||||||||||||||||
During 2013 and 2011, the Company recorded impairment charges related to marketed products of $486 million and $118 million, respectively, within Material and production costs. Of the amount recorded in 2013, $330 million resulted from lower cash flow projections for Saphris/Sycrest, due to reduced expectations in international markets and in the United States. These revisions to cash flows indicated that the Saphris/Sycrest intangible asset value was not recoverable on an undiscounted cash flows basis. The Company utilized market participant assumptions and considered several different scenarios to determine its best estimate of the fair value of the intangible asset related to Saphris/Sycrest that, when compared with its related carrying value, resulted in the impairment charge noted above. The remaining $156 million of impairment charges in 2013 resulted from lower cash flow projections for Rebetol due to reduced expectations in Japan and Europe. These revisions to cash flows indicated that the Rebetol intangible asset value was not recoverable on an undiscounted cash flows basis. The Company utilized market participant assumptions to determine its best estimate of the fair value of the intangible asset related to Rebetol that, when compared with its related carrying value, resulted in the impairment charge noted above. | ||||||||||||||||||||||||
IPR&D represents the fair value assigned to incomplete research projects that the Company acquires through business combinations which, at the time of acquisition, have not reached technological feasibility. Amounts capitalized as IPR&D are accounted for as indefinite-lived intangible assets, subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, the Company will make a separate determination as to the then useful life of the assets and begin amortization. During 2013, 2012 and 2011, $346 million, $78 million and $666 million, respectively, of IPR&D was reclassified to products and product rights upon receipt of marketing approval in a major market. | ||||||||||||||||||||||||
During 2013, the Company recorded $279 million of IPR&D impairment charges within Research and development expenses. Of this amount, $181 million related to the write-off of the intangible asset associated with preladenant as a result of the discontinuation of the clinical development program for this compound. In addition, the Company recorded impairment charges resulting from changes in cash flow assumptions for certain compounds, as well as for pipeline programs that had previously been deprioritized and were subsequently deemed to have no alternative use in the period. During 2012, the Company recorded $200 million of IPR&D impairment charges primarily for pipeline programs that had previously been deprioritized and were subsequently deemed to have no alternative use during the period. During 2011, the Company recorded $587 million of IPR&D impairment charges primarily for pipeline programs that were abandoned and determined to have no alternative use, as well as for expected delays in the launch timing or changes in the cash flow assumptions for certain compounds. In addition, the impairment charges in 2011 related to pipeline programs that had previously been deprioritized and were either deemed to have no alternative use during the period or were out-licensed to a third party for consideration that was less than the related asset’s carrying value. | ||||||||||||||||||||||||
All of the IPR&D projects that remain in development are subject to the inherent risks and uncertainties in drug development and it is possible that the Company will not be able to successfully develop and complete the IPR&D programs and profitably commercialize the underlying product candidates. | ||||||||||||||||||||||||
The Company may recognize additional non-cash impairment charges in the future related to other marketed products or pipeline programs and such charges could be material. | ||||||||||||||||||||||||
Aggregate amortization expense primarily recorded within Materials and production costs was $4.8 billion in 2013, $5.0 billion in 2012 and $5.1 billion in 2011. The estimated aggregate amortization expense for each of the next five years is as follows: 2014, $4.3 billion; 2015, $4.1 billion; 2016, $3.4 billion; 2017, $3.1 billion; 2018, $1.6 billion. |
Joint_Ventures_and_Other_Equit
Joint Ventures and Other Equity Method Affiliates | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Joint Ventures and Other Equity Method Affiliates | ' | |||||||||||
Joint Ventures and Other Equity Method Affiliates | ||||||||||||
Equity income from affiliates reflects the performance of the Company’s joint ventures and other equity method affiliates and was comprised of the following: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
AstraZeneca LP | $ | 352 | $ | 621 | $ | 574 | ||||||
Other (1) | 52 | 21 | 36 | |||||||||
$ | 404 | $ | 642 | $ | 610 | |||||||
(1) Primarily reflects results from Sanofi Pasteur MSD and Johnson & Johnson°Merck Consumer Pharmaceuticals Company (which was disposed of on September 29, 2011). | ||||||||||||
AstraZeneca LP | ||||||||||||
In 1982, Merck entered into an agreement with Astra AB (“Astra”) to develop and market Astra products under a royalty-bearing license. In 1993, Merck’s total sales of Astra products reached a level that triggered the first step in the establishment of a joint venture business carried on by Astra Merck Inc. (“AMI”), in which Merck and Astra each owned a 50% share. This joint venture, formed in 1994, developed and marketed most of Astra’s new prescription medicines in the United States including Prilosec, the first of a class of medications known as proton pump inhibitors, which slows the production of acid from the cells of the stomach lining. | ||||||||||||
In 1998, Merck and Astra completed the restructuring of the ownership and operations of the joint venture whereby Merck acquired Astra’s interest in AMI, renamed KBI Inc. (“KBI”), and contributed KBI’s operating assets to a new U.S. limited partnership, Astra Pharmaceuticals L.P. (the “Partnership”), in exchange for a 1% limited partner interest. Astra contributed the net assets of its wholly owned subsidiary, Astra USA, Inc., to the Partnership in exchange for a 99% general partner interest. The Partnership, renamed AstraZeneca LP (“AZLP”) upon Astra’s 1999 merger with Zeneca Group Plc, became the exclusive distributor of the products for which KBI retained rights. | ||||||||||||
While maintaining a 1% limited partner interest in AZLP, Merck has consent and protective rights intended to preserve its business and economic interests, including restrictions on the power of the general partner to make certain distributions or dispositions. Furthermore, in limited events of default, additional rights will be granted to the Company, including powers to direct the actions of, or remove and replace, the Partnership’s chief executive officer and chief financial officer. Merck earns ongoing revenue based on sales of KBI products and such revenue was $920 million, $915 million and $1.2 billion in 2013, 2012 and 2011, respectively, primarily relating to sales of Nexium, as well as Prilosec. In addition, Merck earns certain Partnership returns, which are recorded in Equity income from affiliates, as reflected in the table above. Such returns include a priority return provided for in the Partnership Agreement, a preferential return representing Merck’s share of undistributed AZLP GAAP earnings, and a variable return related to the Company’s 1% limited partner interest. | ||||||||||||
In 2014, AstraZeneca has the option to purchase Merck’s interest in KBI based in part on the value of Merck’s interest in Nexium and Prilosec. AstraZeneca’s option is exercisable between March 1, 2014 and April 30, 2014. If AstraZeneca chooses to exercise this option, the closing date is expected to be June 30, 2014. Under the amended agreement, AstraZeneca will make a payment to Merck upon closing of $327 million, reflecting an estimate of the fair value of Merck’s interest in Nexium and Prilosec. This portion of the exercise price is subject to a true-up in 2018 based on actual sales from closing in 2014 to June 2018. The exercise price will also include an additional amount equal to a multiple of ten times Merck’s average 1% annual profit allocation in the partnership for the three years prior to exercise. The Company believes that it is likely that AstraZeneca will exercise its option in 2014. | ||||||||||||
Summarized financial information for AZLP is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Sales | $ | 4,611 | $ | 4,694 | $ | 4,659 | ||||||
Materials and production costs | 2,222 | 2,177 | 2,023 | |||||||||
Other expense, net | 1,175 | 1,312 | 1,392 | |||||||||
Income before taxes (1) | $ | 1,214 | $ | 1,205 | $ | 1,244 | ||||||
December 31 | 2013 | 2012 | ||||||||||
Current assets | $ | 4,832 | $ | 3,662 | ||||||||
Noncurrent assets | 182 | 206 | ||||||||||
Current liabilities | 3,958 | 3,145 | ||||||||||
(1) | Merck’s partnership returns from AZLP are generally contractually determined as noted above and are not based on a percentage of income from AZLP, other than with respect to Merck’s 1% limited partnership interest. | |||||||||||
Sanofi Pasteur MSD | ||||||||||||
In 1994, Merck and Pasteur Mérieux Connaught (now Sanofi Pasteur S.A.) established an equally-owned joint venture to market vaccines in Europe and to collaborate in the development of combination vaccines for distribution in Europe. Joint venture vaccine sales were $1.2 billion for 2013, $1.1 billion for 2012 and $1.1 billion for 2011. | ||||||||||||
Johnson & Johnson°Merck Consumer Pharmaceuticals Company | ||||||||||||
In 2011, Merck sold its 50% interest in the Johnson & Johnson°Merck Consumer Pharmaceuticals Company (“JJMCP”) joint venture to J&J. The venture between Merck and J&J was formed in 1989 to develop, manufacture, market and distribute certain over-the-counter consumer products in the United States and Canada. Merck received a one-time payment of $175 million and recognized a pretax gain of $136 million in 2011 reflected in Other (income) expense, net. The partnership assets also included a manufacturing facility. Sales of products marketed by the joint venture were $62 million for the period from January 1, 2011 until the September 29, 2011 divestiture date. | ||||||||||||
Investments in affiliates accounted for using the equity method, including the above joint ventures, totaled $1.6 billion at December 31, 2013 and $1.3 billion at December 31, 2012. These amounts are reported in Other assets. Amounts due from the above joint ventures included in Deferred income taxes and other current assets were $277 million at December 31, 2013 and $302 million at December 31, 2012. | ||||||||||||
Summarized information for those affiliates (excluding AZLP disclosed separately above) is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011(1) | |||||||||
Sales | $ | 1,326 | $ | 1,295 | $ | 1,331 | ||||||
Materials and production costs | 581 | 573 | 584 | |||||||||
Other expense, net | 691 | 705 | 642 | |||||||||
Income before taxes | 54 | 17 | 105 | |||||||||
December 31 | 2013 | 2012 | ||||||||||
Current assets | $ | 1,486 | $ | 971 | ||||||||
Noncurrent assets | 149 | 112 | ||||||||||
Current liabilities | 456 | 480 | ||||||||||
Noncurrent liabilities | 154 | 97 | ||||||||||
(1) Includes information for the JJMCP joint venture until its divestiture on September 29, 2011. |
Loans_Payable_LongTerm_Debt_an
Loans Payable, Long-Term Debt and Other Commitments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Loans Payable, Long-Term Debt and Other Commitments | ' | |||||||
Loans Payable, Long-Term Debt and Other Commitments | ||||||||
Loans payable at December 31, 2013 included $2.1 billion of notes due in 2014, $1.6 billion of commercial paper, $402 million of short-term foreign borrowings and $370 million of long-dated notes that are subject to repayment at the option of the holder. Loans payable at December 31, 2012 included $1.8 billion of notes due in 2013, $1.7 billion of commercial paper, $454 million of short-term foreign borrowings and $328 million of long-dated notes that are subject to repayment at the option of the holders. The weighted-average interest rate of the commercial paper borrowings was 0.09% and 0.15% at December 31, 2013 and 2012, respectively. | ||||||||
Long-term debt at December 31 consisted of: | ||||||||
2013 | 2012 | |||||||
2.80% notes due 2023 | $ | 1,749 | $ | — | ||||
6.50% notes due 2033 | 1,306 | 1,310 | ||||||
5.00% notes due 2019 | 1,293 | 1,294 | ||||||
4.15% notes due 2043 | 1,246 | — | ||||||
3.875% notes due 2021 | 1,148 | 1,147 | ||||||
6.55% notes due 2037 | 1,143 | 1,146 | ||||||
6.00% notes due 2017 | 1,095 | 1,112 | ||||||
4.00% notes due 2015 | 1,029 | 1,049 | ||||||
4.75% notes due 2015 | 1,023 | 1,044 | ||||||
2.40% notes due 2022 | 1,000 | 1,000 | ||||||
Floating-rate borrowing due 2018 | 1,000 | — | ||||||
1.10% notes due 2018 | 998 | 998 | ||||||
0.70% notes due 2016 | 997 | — | ||||||
1.30% notes due 2018 | 975 | — | ||||||
2.25% notes due 2016 | 866 | 874 | ||||||
5.85% notes due 2039 | 749 | 749 | ||||||
Floating-rate borrowing due 2016 | 500 | — | ||||||
6.40% debentures due 2028 | 499 | 499 | ||||||
5.75% notes due 2036 | 498 | 498 | ||||||
5.95% debentures due 2028 | 498 | 498 | ||||||
3.60% notes due 2042 | 492 | 492 | ||||||
6.30% debentures due 2026 | 249 | 248 | ||||||
5.375% euro-denominated notes due 2014 | — | 2,058 | ||||||
Other | 186 | 238 | ||||||
$ | 20,539 | $ | 16,254 | |||||
Other (as presented in the table above) included $119 million and $165 million at December 31, 2013 and 2012, respectively, of borrowings at variable rates averaging 0.0% for 2013 and 0.1% for 2012. Other also included foreign borrowings of $64 million and $70 million at December 31, 2013 and 2012, respectively, at varying rates up to 4.5% and 8.5%, respectively. | ||||||||
With the exception of the 6.3% debentures due 2026, the notes listed in the table above are redeemable in whole or in part, at Merck’s option at any time, at varying redemption prices. | ||||||||
In May 2013, the Company completed an underwritten public offering of $6.5 billion senior unsecured notes consisting of $1.0 billion aggregate principal amount of 0.70% notes due in 2016, $500 million aggregate principal amount of floating rate notes due in 2016, $1.0 billion aggregate principal amount of 1.30% notes due in 2018, $1.0 billion aggregate principal amount of floating rate notes due in 2018, $1.75 billion aggregate principal amount of 2.80% notes due in 2023 and $1.25 billion aggregate principal amount of 4.15% notes due in 2043. Interest on the notes is payable semi-annually. The notes of each series are redeemable in whole or in part at any time at the Company’s option at varying redemption prices. A substantial portion of the net proceeds from the notes were used to repurchase the Company’s common stock pursuant to an accelerated share repurchase agreement in May 2013 (see Note 11). | ||||||||
Effective as of November 3, 2009, the Company executed a full and unconditional guarantee of the then existing debt of its subsidiary Merck Sharp & Dohme Corp. (“MSD”) and MSD executed a full and unconditional guarantee of the then existing debt of the Company (excluding commercial paper), including for payments of principal and interest. These guarantees do not extend to debt issued subsequent to that date. | ||||||||
Certain of the Company’s borrowings require that Merck comply with financial covenants including a requirement that the Total Debt to Capitalization Ratio (as defined in the applicable agreements) not exceed 60%. At December 31, 2013, the Company was in compliance with these covenants. | ||||||||
The aggregate maturities of long-term debt for each of the next five years are as follows: 2014, $2.1 billion; 2015, $2.1 billion; 2016, $2.4 billion; 2017, $1.1 billion; 2018, $3.0 billion. | ||||||||
In May 2012, the Company entered into a $4.0 billion, five-year credit facility maturing in May 2017. The facility provides backup liquidity for the Company’s commercial paper borrowing facility and is to be used for general corporate purposes. The Company has not drawn funding from this facility. | ||||||||
Rental expense under operating leases, net of sublease income, was $367 million in 2013, $396 million in 2012 and $411 million in 2011. The minimum aggregate rental commitments under noncancellable leases are as follows: 2014, $259 million; 2015, $208 million; 2016, $132 million; 2017, $91 million; 2018, $64 million and thereafter, $144 million. The Company has no significant capital leases. |
Contingencies_and_Environmenta
Contingencies and Environmental Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies and Environmental Liabilities | ' |
Contingencies and Environmental Liabilities | |
The Company is involved in various claims and legal proceedings of a nature considered normal to its business, including product liability, intellectual property, and commercial litigation, as well as additional matters such as antitrust actions and environmental matters. Except for the Vioxx Litigation (as defined below) for which a separate assessment is provided in this Note, in the opinion of the Company, it is unlikely that the resolution of these matters will be material to the Company’s financial position, results of operations or cash flows. | |
Given the nature of the litigation discussed below, including the Vioxx Litigation, and the complexities involved in these matters, the Company is unable to reasonably estimate a possible loss or range of possible loss for such matters until the Company knows, among other factors, (i) what claims, if any, will survive dispositive motion practice, (ii) the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate, (iii) how the discovery process will affect the litigation, (iv) the settlement posture of the other parties to the litigation and (v) any other factors that may have a material effect on the litigation. | |
The Company records accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. For product liability claims, a portion of the overall accrual is actuarially determined and considers such factors as past experience, number of claims reported and estimates of claims incurred but not yet reported. Individually significant contingent losses are accrued when probable and reasonably estimable. Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. | |
The Company’s decision to obtain insurance coverage is dependent on market conditions, including cost and availability, existing at the time such decisions are made. The Company has evaluated its risks and has determined that the cost of obtaining product liability insurance outweighs the likely benefits of the coverage that is available and, as such, has no insurance for certain product liabilities effective August 1, 2004. | |
Vioxx Litigation | |
Product Liability Lawsuits | |
As previously disclosed, Merck is a defendant in approximately 90 federal and state lawsuits (the “Vioxx Product Liability Lawsuits”) alleging personal injury or economic loss as a result of the purchase or use of Vioxx. Most of the remaining cases are coordinated in a multidistrict litigation in the U.S. District Court for the Eastern District of Louisiana (the “Vioxx MDL”) before Judge Eldon E. Fallon. | |
Merck has reached a resolution, approved by Judge Fallon, of all remaining federal court putative class actions that were brought on behalf of individual purchasers or users of Vioxx seeking reimbursement for alleged economic loss. Under the settlement, Merck will pay up to $23 million to pay all properly documented claims submitted by class members, approved attorneys’ fees and expenses, and approved settlement notice costs and certain other administrative expenses. The court entered an order approving the settlement on January 6, 2014. The period for members to submit claims under the settlement is still pending. | |
Merck also settled a Missouri state court class action of plaintiffs who sought reimbursement for out-of-pocket costs relating to Vioxx. The Company established a reserve of $39 million in 2012 in connection with that settlement agreement, which is the minimum amount that the Company is required to pay under the agreement. The settlement was approved, and final judgment in the action has been entered. The court-approved process for class members to submit claims under the settlement closed in October 2013. | |
In Indiana, plaintiffs filed a motion to certify a class of Indiana Vioxx purchasers in a case pending before the Circuit Court of Marion County, Indiana. That case has been dormant for several years. In April 2010, a Kentucky state court denied Merck’s motion for summary judgment and certified a class of Kentucky plaintiffs seeking reimbursement for out-of-pocket costs relating to Vioxx. The trial court subsequently entered an amended class certification order in January 2011. The matter was settled on a named-plaintiff-only basis in December 2013. | |
Merck is also a defendant in lawsuits brought by state Attorneys General of four states — Alaska, Mississippi, Montana and Utah. All of these actions are pending in the Vioxx MDL proceeding. These actions allege that Merck misrepresented the safety of Vioxx. These suits seek recovery for expenditures on Vioxx by government-funded health care programs, such as Medicaid, and/or penalties for alleged Consumer Fraud Act violations. In November 2013, the Circuit Court of Franklin County, Kentucky approved a settlement in an action filed by the Kentucky Attorney General, under which Merck agreed to pay Kentucky $25 million to resolve its lawsuit and the related appeals. | |
Shareholder Lawsuits | |
As previously disclosed, in addition to the Vioxx Product Liability Lawsuits, various putative class actions and individual lawsuits under federal securities laws and state laws have been filed against Merck and various current and former officers and directors (the “Vioxx Securities Lawsuits”). The Vioxx Securities Lawsuits are coordinated in a multidistrict litigation in the U.S. District Court for the District of New Jersey before Judge Stanley R. Chesler, and have been consolidated for all purposes. In August 2011, Judge Chesler granted in part and denied in part Merck’s motion to dismiss the Fifth Amended Class Action Complaint in the consolidated securities action. Among other things, the claims based on statements made on or after the voluntary withdrawal of Vioxx on September 30, 2004, have been dismissed. In October 2011, defendants answered the Fifth Amended Class Action Complaint. In April 2012, plaintiffs filed a motion for class certification and, in January 2013, Judge Chesler granted that motion. In March 2013, plaintiffs filed a motion for leave to amend their complaint to add certain allegations to expand the class period. In May 2013, the court denied plaintiffs’ motion for leave to amend their complaint to expand the class period, but granted plaintiffs’ leave to amend their complaint to add certain allegations within the existing class period. In June 2013, plaintiffs filed their Sixth Amended Class Action Complaint. In July 2013, defendants answered the Sixth Amended Class Action Complaint. Discovery has been completed and is now closed. Under the court’s scheduling order, dispositive motions were filed on January 17, 2014. | |
As previously disclosed, several individual securities lawsuits filed by foreign institutional investors also are consolidated with the Vioxx Securities Lawsuits. In October 2011, plaintiffs filed amended complaints in each of the pending individual securities lawsuits. Also in October 2011, a new individual securities lawsuit (the “KBC Lawsuit”) was filed in the District of New Jersey by several foreign institutional investors; that case is also consolidated with the Vioxx Securities Lawsuits. In January 2012, defendants filed motions to dismiss in one of the individual lawsuits (the “ABP Lawsuit”). Briefing on the motions to dismiss was completed in March 2012. In August 2012, Judge Chesler granted in part and denied in part the motions to dismiss the ABP Lawsuit. Among other things, certain alleged misstatements and omissions were dismissed as inactionable and all state law claims were dismissed in full. In September 2012, defendants answered the complaints in all individual actions other than the KBC Lawsuit; on the same day, defendants moved to dismiss the complaint in the KBC Lawsuit on statute of limitations grounds. In December 2012, Judge Chesler denied the motion to dismiss the KBC Lawsuit and, in January 2013, defendants answered the complaint in the KBC Lawsuit. Discovery has been completed and is now closed. Under the court’s scheduling order, dispositive motions were filed on January 24, 2014. | |
Insurance | |
The Company has Directors and Officers insurance coverage applicable to the Vioxx Securities Lawsuits with remaining stated upper limits of approximately $165 million, which is currently being used to partially fund the Company’s legal fees. As a result of the previously disclosed insurance arbitration, additional insurance coverage for these claims should also be available, if needed, under upper-level excess policies that provide coverage for a variety of risks. There are disputes with the insurers about the availability of some or all of the Company’s insurance coverage for these claims and there are likely to be additional disputes. The amounts actually recovered under the policies discussed in this paragraph may be less than the stated upper limits. | |
International Lawsuits | |
As previously disclosed, in addition to the lawsuits discussed above, Merck has been named as a defendant in litigation relating to Vioxx in Brazil, Canada, Europe and Israel (collectively, the “Vioxx International Lawsuits”). As previously disclosed, the Company has entered into an agreement to resolve all claims related to Vioxx in Canada pursuant to which the Company will pay a minimum of approximately $21 million but not more than an aggregate maximum of approximately $36 million. The agreement has been approved by courts in Canada’s provinces. | |
Reserves | |
The Company believes that it has meritorious defenses to the remaining Vioxx Product Liability Lawsuits, Vioxx Securities Lawsuits and Vioxx International Lawsuits (collectively, the “Vioxx Litigation”) and will vigorously defend against them. In view of the inherent difficulty of predicting the outcome of litigation, particularly where there are many claimants and the claimants seek indeterminate damages, the Company is unable to predict the outcome of these matters and, at this time, cannot reasonably estimate the possible loss or range of loss with respect to the remaining Vioxx Litigation. The Company has established a reserve with respect to the Canadian settlement, certain other Vioxx Product Liability Lawsuits and other immaterial settlements related to certain Vioxx International Lawsuits. The Company also has an immaterial remaining reserve relating to the previously disclosed Vioxx investigation for the non-participating states with which litigation is continuing. The Company has established no other liability reserves with respect to the Vioxx Litigation. Unfavorable outcomes in the Vioxx Litigation could have a material adverse effect on the Company’s financial position, liquidity and results of operations. | |
Other Product Liability Litigation | |
Fosamax | |
As previously disclosed, Merck is a defendant in product liability lawsuits in the United States involving Fosamax (the “Fosamax Litigation”). As of December 31, 2013, approximately 5,415 cases, which include approximately 5,680 plaintiff groups, had been filed and were pending against Merck in either federal or state court, including one case which seeks class action certification, as well as damages and/or medical monitoring. In approximately 1,140 of these actions, plaintiffs allege, among other things, that they have suffered osteonecrosis of the jaw (“ONJ”), generally subsequent to invasive dental procedures, such as tooth extraction or dental implants and/or delayed healing, in association with the use of Fosamax. In addition, plaintiffs in approximately 4,275 of these actions generally allege that they sustained femur fractures and/or other bone injuries (“Femur Fractures”) in association with the use of Fosamax. | |
In December 2013, Merck reached an agreement in principle with the Plaintiffs’ Steering Committee in the Fosamax ONJ MDL (as defined below) to resolve pending ONJ cases not on appeal in the Fosamax ONJ MDL and in the state courts for an aggregate amount of $27.7 million, which the Company recorded as liability in the fourth quarter of 2013. All of plaintiffs’ counsel have advised the Company that they intend to participate in the settlement plan. As a condition to the settlement, 100% of the state and federal ONJ plaintiffs must also agree to participate in the settlement plan by March 31, 2014. If 100% participation is not achieved, Merck has until May 15, 2014, to determine whether it will terminate the agreement, waive the 100% participation requirement, or agree to a lesser funding amount for the settlement fund. This tentative settlement has no effect on the cases alleging Femur Fractures discussed below. | |
Cases Alleging ONJ and/or Other Jaw Related Injuries | |
In August 2006, the Judicial Panel on Multidistrict Litigation (“JPML”) ordered that certain Fosamax product liability cases pending in federal courts nationwide should be transferred and consolidated into one multidistrict litigation (the “Fosamax ONJ MDL”) for coordinated pre-trial proceedings. The Fosamax ONJ MDL has been transferred to Judge John Keenan in the U.S. District Court for the Southern District of New York. As a result of the JPML order, approximately 855 of the cases are before Judge Keenan. In the first Fosamax ONJ MDL trial, Boles v. Merck, the Fosamax ONJ MDL court declared a mistrial because the eight person jury could not reach a unanimous verdict. The Boles case was retried in June 2010 and resulted in a verdict in favor of the plaintiff in the amount of $8 million. Merck filed post-trial motions seeking judgment as a matter of law or, in the alternative, a new trial. In October 2010, the court denied Merck’s post-trial motions but sua sponte ordered a remittitur reducing the verdict to $1.5 million. Plaintiff rejected the remittitur ordered by the court and requested a new trial on damages. Plaintiff and Merck subsequently entered into a confidential stipulation as to the amount of plaintiff’s damages that enabled Merck to appeal the underlying judgment, and Merck filed its appeal in the Boles case in October 2012. Prior to 2013, three other cases were tried to verdict in the Fosamax ONJ MDL. Defense verdicts in favor of Merck were returned in each of those three cases. Plaintiffs have filed an appeal in two of the cases – Graves v. Merck and Secrest v. Merck. In January 2013, the U.S. Court of Appeals for the Second Circuit affirmed the judgment in Merck’s favor in Secrest. Plaintiff in the Secrest case subsequently filed a petition for a writ of certiorari with the U.S. Supreme Court, which was denied in June 2013. | |
In February 2011, Judge Keenan ordered that two further bellwether trials be conducted in the Fosamax ONJ MDL. Spano v. Merck and Jellema v. Merck were selected by the court to be tried in 2012, but each case was dismissed by the plaintiffs. In March 2012, the court selected Scheinberg v. Merck as the next case to be tried. Trial in the Scheinberg case began in January 2013 and, in February 2013, the jury returned a mixed verdict, finding in favor of Merck on plaintiff’s design defect claim and finding in favor of plaintiff on her failure to warn claim, and awarded her $285 thousand in compensatory damages. Merck’s post-trial motion for judgment as a matter of law in the Scheinberg case was denied in July 2013, and the Company has filed an appeal with the U.S. Court of Appeals for the Second Circuit. | |
In November 2012, Judge Keenan issued an order requiring plaintiffs who do not allege certain types of specific injuries to provide expert reports in support of their claims. The deadlines for submission of these reports were staggered throughout the first half of 2013. To date, the claims of approximately 425 plaintiffs subject to the order have been dismissed with prejudice. In August 2013, Judge Keenan denied Merck’s request to extend his order to additional groups of plaintiffs and also decided to start winding down the Fosamax ONJ MDL by the remand/transfer of the remaining cases back to their proper venues at a rate of 200 cases per month beginning November 1, 2013. That date was subsequently changed at plaintiffs’ request to December 1, 2013, and was later suspended indefinitely. | |
In addition, in July 2008, an application was made by the Atlantic County Superior Court of New Jersey requesting that all of the Fosamax cases pending in New Jersey be considered for mass tort designation and centralized management before one judge in New Jersey. In October 2008, the New Jersey Supreme Court ordered that all pending and future actions filed in New Jersey arising out of the use of Fosamax and seeking damages for existing dental and jaw-related injuries, including ONJ, but not solely seeking medical monitoring, be designated as a mass tort for centralized management purposes before Judge Carol E. Higbee in Atlantic County Superior Court. As of December 31, 2013, approximately 280 ONJ cases were pending against Merck in Atlantic County, New Jersey. In July 2009, Judge Higbee entered a Case Management Order (and various amendments thereto) setting forth a schedule that contemplates completing fact and expert discovery in an initial group of cases to be reviewed for trial. In February 2011, the jury in Rosenberg v. Merck, the first trial in the New Jersey coordinated proceeding, returned a verdict in Merck’s favor. In April 2012, the jury in Sessner v. Merck, the second case tried in New Jersey, also returned a verdict in Merck’s favor. Plaintiffs have filed an appeal in both cases. In March 2013, the New Jersey Appellate Division affirmed the judgment in Merck’s favor in the Rosenberg case. | |
Cases Alleging Femur Fractures | |
In March 2011, Merck submitted a Motion to Transfer to the JPML seeking to have all federal cases alleging Femur Fractures consolidated into one multidistrict litigation for coordinated pre-trial proceedings. The Motion to Transfer was granted in May 2011, and all federal cases involving allegations of Femur Fracture have been or will be transferred to a multidistrict litigation in the District of New Jersey (the “Fosamax Femur Fracture MDL”). As a result of the JPML order, approximately 1,105 cases were pending in the Fosamax Femur Fracture MDL as of December 31, 2013. A Case Management Order was entered requiring the parties to review 40 cases (later reduced to 33 cases). Judge Joel Pisano selected four cases from that group to be tried as the initial bellwether cases in the Fosamax Femur Fracture MDL. The first bellwether case, Glynn v. Merck, began on April 8, 2013, and the jury returned a verdict in Merck’s favor on April 29, 2013; in addition, on June 27, 2013, Judge Pisano granted Merck’s motion for judgment as a matter of law in the Glynn case and held that the plaintiff’s failure to warn claim was preempted by federal law. Judge Pisano set a May 5, 2014, trial date for the bellwether trial of a case in which the alleged injury took place after January 31, 2011. Following the completion of fact discovery, the court selected Sweet v. Merck as the next Fosamax Femur Fracture MDL case to be tried on May 5, 2014, but plaintiffs subsequently dismissed that case. As a result, the May 2014 trial date was withdrawn and the court is expected to set an October 1, 2014 trial date for the next bellwether trial in the Fosamax Femur Fracture MDL. | |
In addition, Judge Pisano entered an order in August 2013 requiring plaintiffs in the Fosamax Femur Fracture MDL to show cause why those cases asserting claims for a femur fracture injury that took place prior to September 14, 2010, should not be dismissed based on the court’s preemption decision in the Glynn case. Plaintiffs filed their responses to the show cause order at the end of September 2013 and Merck filed its reply to those responses at the end of October 2013. A hearing on the show cause order was held on January 29, 2014 and a final ruling from the court is pending. | |
As of December 31, 2013, approximately 2,655 cases alleging Femur Fractures have been filed in New Jersey state court and are pending before Judge Higbee in Atlantic County Superior Court. The parties selected an initial group of 30 cases to be reviewed through fact discovery. The first trial of the New Jersey state Femur Fracture cases, Su v. Merck, began in early March 2013, but a mistrial was declared later in March 2013 after the plaintiff suffered a serious medical issue unrelated to her use of Fosamax that prevented her from proceeding with the trial. The next trial, Unanski v. Merck, was set to be tried beginning in November 2013, but was continued and is now set for trial, potentially along with one or two other cases (Love v. Merck and Caravello v. Merck), beginning on March 17, 2014. An additional group of 50 cases to be reviewed through fact discovery was selected in November 2013. | |
As of December 31, 2013, approximately 510 cases alleging Femur Fractures have been filed in California state court. A petition was filed seeking to coordinate all Femur Fracture cases filed in California state court before a single judge in Orange County, California. The petition was granted and Judge Steven Perk is now presiding over the coordinated proceedings. In November 2013, the court ordered that fact discovery commence. The parties are expected to select the first round of cases to be included in a bellwether discovery pool in May 2014. | |
Additionally, there are seven Femur Fracture cases pending in other state courts. | |
Discovery is ongoing in the Fosamax Femur Fracture MDL and in state courts where Femur Fracture cases are pending and the Company intends to defend against these lawsuits. | |
Januvia/Janumet | |
As previously disclosed, Merck is a defendant in product liability lawsuits in the United States involving Januvia and/or Janumet. As of December 31, 2013, approximately 165 cases were served on, and are pending against, Merck alleging generally that use of Januvia and/or Janumet caused the development of pancreatic cancer. These complaints were filed in several different state and federal courts. Most of the claims are pending in a consolidated multidistrict litigation proceeding in the U.S. District Court for the Southern District of California called “In re Incretin-Based Therapies Products Liability Litigation.” That proceeding includes federal lawsuits alleging pancreatic cancer due to use of the following medicines: Januvia, Janumet, Byetta and Victoza, the latter two of which are products manufactured by other pharmaceutical companies. In addition to the cases noted above, the Company has agreed, as of December 31, 2013, to toll the statute of limitations for two additional claims. The Company intends to defend against these lawsuits. | |
NuvaRing | |
As previously disclosed, beginning in May 2007, a number of complaints were filed in various jurisdictions asserting claims against the Company’s subsidiaries Organon USA, Inc., Organon Pharmaceuticals USA, Inc., Organon International (collectively, “Organon”), and the Company arising from Organon’s marketing and sale of NuvaRing (the “NuvaRing Litigation”), a combined hormonal contraceptive vaginal ring. The plaintiffs contend that Organon and Schering-Plough, among other things, failed to adequately design and manufacture NuvaRing and failed to adequately warn of the alleged increased risk of venous thromboembolism (“VTE”) posed by NuvaRing, and/or downplayed the risk of VTE. The plaintiffs seek damages for injuries allegedly sustained from their product use, including some alleged deaths, heart attacks and strokes. The majority of the cases are currently pending in a federal multidistrict litigation (the “NuvaRing MDL”) venued in Missouri and in a coordinated proceeding in New Jersey state court. | |
As of December 31, 2013, there were approximately 1,880 filed NuvaRing cases, and approximately 1,405 unfiled claims that were identified in response to census orders issued in the NuvaRing MDL and New Jersey proceedings. Of the filed cases, approximately 1,660 are or will be pending in the NuvaRing MDL in the U.S. District Court for the Eastern District of Missouri before Judge Rodney Sippel, and approximately 210 are pending in coordinated proceedings in the Bergen County Superior Court of New Jersey before Judge Brian R. Martinotti. Proceedings in the NuvaRing MDL and New Jersey are stayed until May 31, 2014. Seven additional cases are pending in various other state courts, including cases in a coordinated state proceeding in the San Francisco Superior Court in California before Judge John E. Munter. Certain state court cases are scheduled for trial in 2014. | |
Merck and negotiating plaintiffs’ counsel have agreed to a settlement of the NuvaRing Litigation that is intended to resolve at least 95% of cases filed as of February 7, 2014, and unfiled claims under retainer by counsel prior to that date. Merck has agreed to a lump total settlement of $100 million, provided there is participation in the settlement of at least 95% of plaintiffs and eligible claimants overall and in certain categories. The Company has certain insurance coverage available to it, which is currently being used to partially fund the Company’s legal fees. This insurance coverage will also be used to fund the settlement. Accordingly, at December 31, 2013, the Company’s consolidated balance sheet includes a current liability for the settlement amount and a corresponding current asset reflecting anticipated insurance recoveries. | |
Propecia/Proscar | |
As previously disclosed, Merck is a defendant in product liability lawsuits in the United States involving Propecia and/or Proscar. As of December 31, 2013, approximately 1,140 lawsuits involving a total of approximately 1,390 plaintiffs (in a few instances spouses are joined as plaintiffs in the suits) who allege that they have experienced persistent sexual side effects following cessation of treatment with Propecia and/or Proscar have been filed against Merck. Approximately 20 of the plaintiffs also allege that Propecia or Proscar has caused or can cause prostate cancer or male breast cancer. The lawsuits have been filed in various federal courts and in state court in New Jersey. The federal lawsuits have been consolidated for pretrial purposes in a federal multidistrict litigation before Judge John Gleeson of the Eastern District of New York. The matters pending in state court in New Jersey have been consolidated before Judge Jessica Mayer in Middlesex County. In addition, there is one matter pending in federal court in Massachusetts and one matter pending in state court in St. Louis, Missouri. The Company intends to defend against these lawsuits. | |
Vytorin/Zetia Litigation | |
As previously disclosed, in April 2008, a Merck shareholder filed a putative class action lawsuit in federal court which was consolidated in the District of New Jersey under the caption, In re Merck & Co., Inc. Vytorin/Zetia Securities Litigation. The complaint alleged that Merck and other defendants delayed releasing unfavorable results of the ENHANCE clinical trial regarding the efficacy of Vytorin and that Merck made false and misleading statements about expected earnings knowing that, once the results of the ENHANCE study were released, sales of Vytorin would decline and Merck’s earnings would suffer. In February 2013, Merck announced an agreement in principle with plaintiffs to settle this matter for $215 million. The settlement agreement was executed by the parties in June 2013, and approved by the court in October 2013. The settlement was reflected in the Company’s 2012 financial results as discussed below. | |
There was a similar consolidated securities class action lawsuit pending in the District of New Jersey against Schering-Plough and other defendants under the caption, In re Schering-Plough Corporation/ENHANCE Securities Litigation. In February 2013, Merck announced an agreement in principle with plaintiffs to settle this matter for $473 million. The settlement agreement was executed in June 2013, and approved by the court in October 2013. The settlement was reflected in the Company’s 2012 financial results and, together with the settlement described in the preceding paragraph (collectively, the “ENHANCE Litigation”), resulted in an aggregate charge of $493 million after taking into account anticipated insurance recoveries of $195 million. In the second quarter of 2013, the Company paid $480 million into a settlement fund. The Company’s insurers subsequently paid the remaining $208 million, which reflects an additional $13 million of insurance recoveries not previously recognized. | |
On November 14, 2013, two complaints were filed in the District of New Jersey against Merck as successor to Schering-Plough, and other defendants, by certain institutional investors who “opted-out” of the ENHANCE securities class action against Schering-Plough. In addition, on January 14, 2014, two complaints were filed in the District of New Jersey against Merck and other defendants by certain institutional investors who “opted-out” of the Vytorin/Zetia securities class action against Merck. The “opt-out” complaints contain allegations similar to those made by plaintiffs in the settled class actions against Schering-Plough and Merck. The Company intends to move to dismiss these complaints and otherwise to defend itself in the litigation. | |
Governmental Proceedings | |
As previously disclosed, Merck has received a Civil Investigative Demand (“CID”) issued by the U.S. Department of Justice (the “DOJ”) addressed to Inspire, a company acquired by Merck in May 2011. The CID advises that it relates to a False Claims Act investigation concerning allegations that Inspire caused the submission of false claims to federal health benefits programs for the drug AzaSite by marketing it for the treatment of indications not approved by the U.S. Food and Drug Administration (the “FDA”). The Company is cooperating with the DOJ in its investigation. | |
As previously disclosed, the Company received a subpoena from the U.S. Attorney’s Office for the Eastern District of California in 2010 requesting information in a civil federal health care investigation relating to the Company’s marketing and selling activities with respect to Integrilin and Avelox from January 2003 to June 2010. In December 2012, the U.S. District Court for the Eastern District of California unsealed a complaint that a former employee of the Company had filed against it in 2009 under the federal False Claims Act and the False Claims Acts of various states. The complaint alleges that the Company caused false claims to be made to federal and state health care programs by promoting Integrilin for unapproved indications and providing unlawful payments and benefits to physicians and others to increase the utilization of Integrilin and Avelox. The federal government and the states under whose statutes the suit was filed each had the right, after investigating these allegations, to intervene in this suit and assume responsibility for its direction, but each of them has notified the court that they decline to intervene. The Company intends to defend against this lawsuit. | |
As previously disclosed, on June 21, 2012, the U.S. District Court for the Eastern District of Pennsylvania unsealed a complaint that has been filed against the Company under the federal False Claims Act by two former employees alleging, among other things, that the Company defrauded the U.S. government by falsifying data in connection with a clinical study conducted on the mumps component of the Company’s M-M-R II vaccine. The complaint alleges the fraud took place between 1999 and 2001. The U.S. government had the right to participate in and take over the prosecution of this lawsuit, but has notified the court that it declined to exercise that right. The two former employees are pursuing the lawsuit without the involvement of the U.S. government. In addition, a putative class action lawsuit has been filed against the Company in the Eastern District of Pennsylvania on behalf of direct purchasers of the M‑M‑R II vaccine which is predicated on the allegations in the False Claims Act complaint and charges that the Company misrepresented the efficacy of the M-M-R II vaccine in violation of federal antitrust laws and various state consumer protection laws. The Company intends to defend against these lawsuits. | |
The Company has received a subpoena from the Office of Inspector General of the U.S. Department of Health and Human Services on behalf of the U.S. Attorney’s Office for the District of Maryland and the Civil Division of the DOJ which requests information relating to the Company’s marketing of Singulair and Dulera and certain of its other marketing activities from January 1, 2006 to the present. The Company is cooperating with the government. | |
As previously disclosed, the Company has received letters from the DOJ and the SEC that seek information about activities in a number of countries and reference the Foreign Corrupt Practices Act. The Company has cooperated with the agencies in their requests and believes that this inquiry is part of a broader review of pharmaceutical industry practices in foreign countries. The Company has been advised by the DOJ that, based on the information that it has received, it has closed its inquiry into this matter as it relates to the Company. In the future, the Company may receive additional requests for information from either or both of the DOJ and the SEC. | |
The Company’s subsidiaries in China have received and may continue to receive inquiries regarding their operations from various Chinese governmental agencies. Some of these inquiries may be related to matters involving other multinational pharmaceutical companies, as well as Chinese entities doing business with such companies. The Company’s policy is to cooperate with these authorities and to provide responses as appropriate. | |
Commercial Litigation | |
AWP Litigation | |
As previously disclosed, the Company and/or certain of its subsidiaries have been named as defendants in cases brought by various states alleging manipulation by pharmaceutical manufacturers of Average Wholesale Prices (“AWP”), which are sometimes used by public and private payors in calculating provider reimbursement levels. The outcome of these lawsuits could include substantial damages, the imposition of substantial fines and penalties and injunctive or administrative remedies. | |
Since the start of 2012, the Company has settled AWP cases brought by the states of Alabama, Alaska, Kansas, Illinois, Kentucky, Louisiana, Oklahoma, Mississippi, and Wisconsin. A subsidiary of the Company continues to be a defendant in a case brought by one state, Utah. | |
The Company has also been reinstated as a defendant in a putative class action in New Jersey Superior Court which alleges on behalf of third-party payers and individuals that manufacturers inflated drug prices by manipulation of AWPs and other means. This case was originally dismissed against the Company without prejudice in 2007. The Company intends to defend against this lawsuit. | |
K-DUR Antitrust Litigation | |
As previously disclosed, in June 1997 and January 1998, Schering-Plough settled patent litigation with Upsher-Smith, Inc. (“Upsher-Smith”) and ESI Lederle, Inc. (“Lederle”), respectively, relating to generic versions of K-DUR, Schering-Plough’s long-acting potassium chloride product supplement used by cardiac patients, for which Lederle and Upsher-Smith had filed Abbreviated New Drug Applications (“ANDAs”). Following the commencement of an administrative proceeding by the U.S. Federal Trade Commission (the “FTC”) in 2001 alleging anti-competitive effects from those settlements (which has been resolved in Schering-Plough’s favor), putative class and non-class action suits were filed on behalf of direct and indirect purchasers of K-DUR against Schering-Plough, Upsher-Smith and Lederle and were consolidated in a multi-district litigation in the U.S. District Court for the District of New Jersey. These suits claimed violations of federal and state antitrust laws, as well as other state statutory and common law causes of action, and sought unspecified damages. In April 2008, the indirect purchasers voluntarily dismissed their case. In March 2010, the District Court granted summary judgment to the defendants on the remaining lawsuits and dismissed the matter in its entirety. In July 2012, the Third Circuit Court of Appeals reversed the District Court’s grant of summary judgment and remanded the case for further proceedings. At the same time, the Third Circuit upheld a December 2008 decision by the District Court to certify certain direct purchaser plaintiffs’ claims as a class action. | |
In August 2012, the Company filed a petition for certiorari with the U.S. Supreme Court seeking review of the Third Circuit’s decision. In June 2013, the Supreme Court granted that petition, vacated the judgment of the Third Circuit, and remanded the case for further consideration in light of its recent decision in FTC v. Actavis, Inc. That decision held that whether a so-called “reverse payment” — i.e., a payment from the holder of a pharmaceutical patent to a party challenging the patent made in connection with a settlement of their dispute — violates the antitrust laws should be determined on the basis of a “rule of reason” analysis. In September 2013, the Third Circuit returned the case to the District Court for further proceedings in accordance with the Actavis standard. | |
Coupon Litigation | |
In 2012, as previously disclosed, a number of private health plans filed separate putative class action lawsuits against the Company alleging that Merck’s coupon programs injured health insurers by reducing beneficiary co-payment amounts and, thereby, allegedly causing beneficiaries to purchase higher-priced drugs than they otherwise would have purchased and increasing the insurers’ reimbursement costs. The actions, which were assigned to a District Judge in the U.S. District Court for the District of New Jersey, sought damages and injunctive relief barring the Company from issuing coupons that would reduce beneficiary co-pays on behalf of putative nationwide classes of health insurers. Similar actions relating to manufacturer coupon programs have been filed against several other pharmaceutical manufacturers in a variety of federal courts. On April 29, 2013, the District Court dismissed all the actions against Merck without prejudice on the grounds that plaintiffs had failed to demonstrate their standing to sue. Plaintiffs subsequently filed a consolidated amended complaint, and Merck has filed a motion to dismiss that complaint. | |
Sales Force Litigation | |
On May 9, 2013, Ms. Kelli Smith filed a complaint against the Company in the United States District Court for the District of New Jersey of behalf of herself and a putative class of female sales representatives and a putative sub-class of female sales representatives with children, claiming (a) discriminatory policies and practices in selection, promotion and advancement, (b) disparate pay, (c) differential treatment, (d) hostile work environment and (e) retaliation under federal and state discrimination laws. On November 27, 2013, the Company filed a motion to dismiss the class claims. Plaintiffs sought and were granted leave to file an amended complaint. On January 16, 2014, plaintiffs filed an amended complaint adding four additional named plaintiffs. The Company intends to re-file its motion to dismiss the class allegations and to otherwise defend itself. | |
Patent Litigation | |
From time to time, generic manufacturers of pharmaceutical products file ANDAs with the FDA seeking to market generic forms of the Company’s products prior to the expiration of relevant patents owned by the Company. To protect its patent rights, the Company may file patent infringement lawsuits against such generic companies. Certain products of the Company (or products marketed via agreements with other companies) currently involved in such patent infringement litigation in the United States include: Emend for Injection, Integrilin, Nexium, and NuvaRing. Similar lawsuits defending the Company’s patent rights may exist in other countries. The Company intends to vigorously defend its patents, which it believes are valid, against infringement by generic companies attempting to market products prior to the expiration of such patents. As with any litigation, there can be no assurance of the outcomes, which, if adverse, could result in significantly shortened periods of exclusivity for these products and, with respect to products acquired through mergers and acquisitions, potentially significant intangible asset impairment charges. | |
Emend for Injection — In May 2012, a patent infringement lawsuit was filed in the United States against Sandoz Inc. (“Sandoz”) in respect of Sandoz’s application to the FDA seeking pre-patent expiry approval to market a generic version of Emend for Injection. The lawsuit automatically stays FDA approval of Sandoz’s application until July 2015 or until an adverse court decision, if any, whichever may occur earlier. In June 2012, a patent infringement lawsuit was filed in the United States against Accord Healthcare, Inc. US, Accord Healthcare, Inc. and Intas Pharmaceuticals Ltd (collectively, “Intas”) in respect of Intas’ application to the FDA seeking pre-patent expiry approval to market a generic version of Emend for Injection. The Company has agreed with Intas to stay the lawsuit pending the outcome of the lawsuit with Sandoz. | |
Integrilin — In February 2009, a patent infringement lawsuit was filed (jointly with Millennium Pharmaceuticals, Inc.) in the United States against Teva Parenteral Medicines, Inc. (“TPM”) in respect of TPM’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Integrilin. In October 2011, the parties entered into a settlement agreement allowing TPM to sell a generic version of Integrilin beginning June 2, 2015. In November 2012, a patent infringement lawsuit was filed against APP Pharmaceuticals, Inc. and Fresenius Kabi USA Inc. (collectively, “APP”) in respect of APP’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Integrilin. In March 2013, the parties entered into a settlement agreement allowing APP to sell a generic version of Integrilin beginning June 2, 2015. In September 2013, a patent infringement lawsuit was filed against Ben Venue Laboratories d/b/a Bedford Laboratories (“Bedford”) in respect of Bedford’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Integrilin. The lawsuit automatically stays FDA approval of Bedford’s application until February 2016 or until an adverse court decision, if any, whichever may occur earlier. | |
Nexium — Patent infringement lawsuits were brought (jointly with AstraZeneca) in the United States against the following generic companies: Ranbaxy Laboratories Ltd., IVAX Pharmaceuticals, Inc. (later acquired by Teva Pharmaceuticals, Inc.), Dr. Reddy’s Laboratories, Sandoz, Lupin Ltd., Hetero Drugs Limited Unit III and Torrent Pharmaceuticals Ltd. in response to each generic company’s application seeking pre-patent expiry approval to sell a generic version of Nexium. Settlements have been reached in each of these lawsuits, the terms of which provide that the respective generic company may bring a generic version of esomeprazole product to market on May 27, 2014. In addition, a patent infringement lawsuit was also filed (jointly with AstraZeneca) in February 2010 in the United States against Sun Pharma Global Fze (“Sun Pharma”) in respect of its application to the FDA seeking pre-patent expiry approval to sell a generic version of Nexium IV, which lawsuit was settled with an agreement which provided that Sun Pharma was entitled to bring its generic esomeprazole IV product to market in the United States on January 1, 2014. A patent infringement lawsuit was also filed (jointly with AstraZeneca) in the United States against Hanmi USA, Inc. (“Hanmi”) related to its application to the FDA seeking pre-patent expiry approval to sell a different salt of esomeprazole than is found in Nexium (the “Hanmi Product”). In a May 2013 agreement, Hanmi conceded the validity and enforceability of the patents in the lawsuit. The parties also agreed that the Hanmi Product would not infringe those patents under the District Court’s December 2012 claim interpretation order, which AstraZeneca and KBI appealed. On December 19, 2013, the Court of Appeals for the Federal Circuit denied the appeal and affirmed the District Court’s claim interpretation order. Hanmi has launched its esomeprazole product at risk. The Company continues to believe the court’s order was incorrect and is considering its options for further review. Finally, additional patent infringement lawsuits have been filed (jointly with AstraZeneca) in the United States against Mylan Laboratories Limited (“Mylan Labs”) and Actavis, Inc./Watson Pharma Company (collectively, “Actavis/Watson”) related to their applications to the FDA seeking pre-patent expiry approval to sell generic versions of Nexium. The Mylan Labs and Actavis/Watson applications to the FDA remain stayed until August 2014 and October 2015, respectively, or until earlier adverse court decisions, if any, whichever may occur earlier. | |
NuvaRing — In December 2013, the Company filed a lawsuit against Warner Chilcott Company LLC (“Warner Chilcott”) in the United States in respect of Warner Chilcott’s application to the FDA seeking pre-patent expiry approval to sell a generic version of NuvaRing. | |
Patent Oppositions | |
Ono Pharmaceutical Co. (“Ono”) has a European patent that broadly claims the use of an anti-PD-1 antibody, such as the Company’s immunotherapy, MK-3475, for the treatment of cancer. Ono has previously licensed its commercial rights to an anti-PD-1 antibody to Bristol-Myers Squibb (“BMS”) in certain markets. The Company believes that this patent is invalid and has filed an opposition in the European Patent Office (the “EPO”) seeking its revocation. The Opposition Division of the EPO has scheduled a hearing in June 2014. The hearing panel has issued a preliminary opinion that the claims in the patent are valid. The hearing panel usually renders a decision, which is subject to further appeal, at the close of a hearing. If the patent survives these proceedings with similar breadth, Merck can file actions seeking to revoke the patent in each relevant national court in Europe. Ono could file patent infringement actions against the Company in each relevant national court in Europe at or around the time the company launches MK-3475 (if approved). If a national court determines that the Company infringed a valid claim in Ono’s patent, Ono may be entitled to monetary damages, including royalties on future sales of MK-3475, and potentially could seek an injunction to prevent the Company from marketing MK-3475 in that country. In addition, Ono and BMS have similar and other patents and applications, which the Company is closely monitoring, pending in the United States, Japan and other countries. The Company is confident that it will be able to market MK-3475 in any country in which it is approved and that it will not be prevented from doing so by the Ono patent or any pending patent. | |
Environmental Litigation | |
As previously disclosed, Merck was involved in pending litigation against it related to alleged injuries caused by alleged emissions from the site of a former Merck subsidiary in Merced, California. Also as previously disclosed, the parties to that litigation reached an agreement in 2013 intended to resolve the litigation, subject to sufficient plaintiff participation, which was obtained. The parties have now finalized the settlement and this litigation was dismissed with prejudice on January 16, 2014 as to all plaintiffs. | |
Other Litigation | |
There are various other pending legal proceedings involving the Company, principally product liability and intellectual property lawsuits. While it is not feasible to predict the outcome of such proceedings, in the opinion of the Company, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s financial position, results of operations or cash flows either individually or in the aggregate. | |
Legal Defense Reserves | |
Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. Some of the significant factors considered in the review of these legal defense reserves are as follows: the actual costs incurred by the Company; the development of the Company’s legal defense strategy and structure in light of the scope of its litigation; the number of cases being brought against the Company; the costs and outcomes of completed trials and the most current information regarding anticipated timing, progression, and related costs of pre-trial activities and trials in the associated litigation. The amount of legal defense reserves as of December 31, 2013 and December 31, 2012 of approximately $160 million and $260 million, respectively, represents the Company’s best estimate of the minimum amount of defense costs to be incurred in connection with its outstanding litigation; however, events such as additional trials and other events that could arise in the course of its litigation could affect the ultimate amount of legal defense costs to be incurred by the Company. The Company will continue to monitor its legal defense costs and review the adequacy of the associated reserves and may determine to increase the reserves at any time in the future if, based upon the factors set forth, it believes it would be appropriate to do so. | |
Environmental Matters | |
The Company and its subsidiaries are parties to a number of proceedings brought under the Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund, and other federal and state equivalents. These proceedings seek to require the operators of hazardous waste disposal facilities, transporters of waste to the sites and generators of hazardous waste disposed of at the sites to clean up the sites or to reimburse the government for cleanup costs. The Company has been made a party to these proceedings as an alleged generator of waste disposed of at the sites. In each case, the government alleges that the defendants are jointly and severally liable for the cleanup costs. Although joint and several liability is alleged, these proceedings are frequently resolved so that the allocation of cleanup costs among the parties more nearly reflects the relative contributions of the parties to the site situation. The Company’s potential liability varies greatly from site to site. For some sites the potential liability is de minimis and for others the final costs of cleanup have not yet been determined. While it is not feasible to predict the outcome of many of these proceedings brought by federal or state agencies or private litigants, in the opinion of the Company, such proceedings should not ultimately result in any liability which would have a material adverse effect on the financial position, results of operations, liquidity or capital resources of the Company. The Company has taken an active role in identifying and providing for these costs and such amounts do not include any reduction for anticipated recoveries of cleanup costs from former site owners or operators or other recalcitrant potentially responsible parties. | |
In management’s opinion, the liabilities for all environmental matters that are probable and reasonably estimable have been accrued and totaled $213 million and $145 million at December 31, 2013 and 2012, respectively. These liabilities are undiscounted, do not consider potential recoveries from other parties and will be paid out over the periods of remediation for the applicable sites, which are expected to occur primarily over the next 15 years. Although it is not possible to predict with certainty the outcome of these matters, or the ultimate costs of remediation, management does not believe that any reasonably possible expenditures that may be incurred in excess of the liabilities accrued should exceed $84 million in the aggregate. Management also does not believe that these expenditures should result in a material adverse effect on the Company’s financial position, results of operations, liquidity or capital resources for any year. |
Equity
Equity | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Equity | ' | |||||||||||||||||
Equity | ||||||||||||||||||
The Merck certificate of incorporation authorizes 6,500,000,000 shares of common stock and 20,000,000 shares of preferred stock. | ||||||||||||||||||
Capital Stock | ||||||||||||||||||
A summary of common stock and treasury stock transactions (shares in millions) is as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Common | Treasury | Common | Treasury | Common | Treasury | |||||||||||||
Stock | Stock | Stock | Stock | Stock | Stock | |||||||||||||
Balance January 1 | 3,577 | 550 | 3,577 | 536 | 3,577 | 495 | ||||||||||||
Purchases of treasury stock (1) | — | 139 | — | 62 | — | 58 | ||||||||||||
Issuances (2) | — | (39 | ) | — | (48 | ) | — | (17 | ) | |||||||||
Balance December 31 | 3,577 | 650 | 3,577 | 550 | 3,577 | 536 | ||||||||||||
(1) | Purchases of treasury stock in 2013 include 105 million shares purchased pursuant to an accelerated share repurchase agreement as discussed below. | |||||||||||||||||
(2) | Issuances primarily reflect activity under share-based compensation plans. | |||||||||||||||||
On May 20, 2013, Merck entered into an accelerated share repurchase (“ASR”) agreement with Goldman, Sachs & Co. (“Goldman Sachs”). Under the ASR, Merck agreed to purchase $5.0 billion of Merck’s common stock, in total, with an initial delivery of approximately 99.5 million shares of Merck’s common stock, based on current market price, made by Goldman Sachs to Merck, and payment of $5.0 billion made by Merck to Goldman Sachs, on May 21, 2013. Upon settlement of the ASR on October 31, 2013, Merck received an additional 5.5 million shares as determined by the average daily volume weighted-average price of Merck’s common stock during the term of the ASR program bringing the total shares received by Merck under this program to 105 million. The ASR was entered into pursuant to a share repurchase program announced on May 1, 2013. | ||||||||||||||||||
Noncontrolling Interests | ||||||||||||||||||
In connection with the 1998 restructuring of AMI, Merck assumed $2.4 billion par value preferred stock with a dividend rate of 5% per annum, which is carried by KBI and included in Noncontrolling interests. If AstraZeneca exercises its option to acquire Merck’s interest in AZLP (see Note 8) this preferred stock obligation will be retired. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||||
Share-Based Compensation Plans | |||||||||||||||
The Company has share-based compensation plans under which the Company grants restricted stock units (“RSUs”) and performance share units (“PSUs”) to certain management level employees. In addition, employees, non-employee directors and employees of certain of the Company’s equity method investees may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. These plans were approved by the Company’s shareholders. | |||||||||||||||
At December 31, 2013, 143 million shares collectively were authorized for future grants under the Company’s share-based compensation plans. These awards are settled primarily with treasury shares. | |||||||||||||||
Employee stock options are granted to purchase shares of Company stock at the fair market value at the time of grant. These awards generally vest one-third each year over a three-year period, with a contractual term of 7-10 years. RSUs are stock awards that are granted to employees and entitle the holder to shares of common stock as the awards vest. The fair value of the stock option and RSU awards is determined and fixed on the grant date based on the Company’s stock price. PSUs are stock awards where the ultimate number of shares issued will be contingent on the Company’s performance against a pre-set objective or set of objectives. The fair value of each PSU is determined on the date of grant based on the Company’s stock price. For RSUs and certain PSUs granted before December 31, 2009 employees participate in dividends on the same basis as common shares and such dividends are nonforfeitable by the holder. For RSUs and PSUs issued on or after January 1, 2010, dividends declared during the vesting period are payable to the employees only upon vesting. Over the PSU performance period, the number of shares of stock that are expected to be issued will be adjusted based on the probability of achievement of a performance target and final compensation expense will be recognized based on the ultimate number of shares issued. RSU and PSU distributions will be in shares of Company stock after the end of the vesting or performance period, generally three years, subject to the terms applicable to such awards. | |||||||||||||||
Total pretax share-based compensation cost recorded in 2013, 2012 and 2011 was $276 million, $335 million and $369 million, respectively, with related income tax benefits of $84 million, $105 million and $118 million, respectively. | |||||||||||||||
The Company uses the Black-Scholes option pricing model for determining the fair value of option grants. In applying this model, the Company uses both historical data and current market data to estimate the fair value of its options. The Black-Scholes model requires several assumptions including expected dividend yield, risk-free interest rate, volatility, and term of the options. The expected dividend yield is based on historical patterns of dividend payments. The risk-free rate is based on the rate at grant date of zero-coupon U.S. Treasury Notes with a term equal to the expected term of the option. Expected volatility is estimated using a blend of historical and implied volatility. The historical component is based on historical monthly price changes. The implied volatility is obtained from market data on the Company’s traded options. The expected life represents the amount of time that options granted are expected to be outstanding, based on historical and forecasted exercise behavior. | |||||||||||||||
The weighted average exercise price of options granted in 2013, 2012 and 2011 was $45.01, $39.51 and $36.47 per option, respectively. The weighted average fair value of options granted in 2013, 2012 and 2011 was $6.21, $5.47 and $5.39 per option, respectively, and were determined using the following assumptions: | |||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | 4.2 | % | 4.4 | % | 4.3 | % | |||||||||
Risk-free interest rate | 1.2 | % | 1.3 | % | 2.5 | % | |||||||||
Expected volatility | 25 | % | 25.2 | % | 23.4 | % | |||||||||
Expected life (years) | 7 | 7 | 7 | ||||||||||||
Summarized information relative to stock option plan activity (options in thousands) is as follows: | |||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | |||||||||||||
Price | Contractual | ||||||||||||||
Term (Years) | |||||||||||||||
Outstanding January 1, 2013 | 165,941 | $ | 39.46 | ||||||||||||
Granted | 5,703 | 45.01 | |||||||||||||
Exercised | (33,278 | ) | 36.37 | ||||||||||||
Forfeited | (22,561 | ) | 49.01 | ||||||||||||
Outstanding December 31, 2013 | 115,805 | $ | 38.75 | 3.79 | $ | 1,320 | |||||||||
Exercisable December 31, 2013 | 101,600 | $ | 38.48 | 3.25 | $ | 1,187 | |||||||||
Additional information pertaining to stock option plans is provided in the table below: | |||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||
Total intrinsic value of stock options exercised | $ | 374 | $ | 528 | $ | 125 | |||||||||
Fair value of stock options vested | 42 | 80 | 189 | ||||||||||||
Cash received from the exercise of stock options | 1,210 | 1,310 | 321 | ||||||||||||
A summary of nonvested RSU and PSU activity (shares in thousands) is as follows: | |||||||||||||||
RSUs | PSUs | ||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||
of Shares | Average | of Shares | Average | ||||||||||||
Grant Date | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||
Nonvested January 1, 2013 | 22,743 | $ | 36.38 | 1,648 | $ | 33.78 | |||||||||
Granted | 6,394 | 45.04 | 963 | 38.25 | |||||||||||
Vested | (8,705 | ) | 34.1 | (839 | ) | 34.17 | |||||||||
Forfeited | (1,298 | ) | 40.02 | (99 | ) | 36.71 | |||||||||
Nonvested December 31, 2013 | 19,134 | $ | 40.07 | 1,673 | $ | 35.98 | |||||||||
At December 31, 2013, there was $374 million of total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards which will be recognized over a weighted average period of 1.9 years. For segment reporting, share-based compensation costs are unallocated expenses. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | ' | |||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||
The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. As a result of plan design changes approved in 2011, beginning on January 1, 2013, active participants in Merck’s primary U.S. defined benefit pension plans are accruing pension benefits using new cash balance formulas based on age, service, pay and interest. However, during a transition period from January 1, 2013 through December 31, 2019, participants will earn the greater of the benefit as calculated under the employee’s legacy final average pay formula or their new cash balance formula. For all years of service after December 31, 2019, participants will earn future benefits under only the cash balance formula. In addition, the Company provides medical benefits, principally to its eligible U.S. retirees and their dependents, through its other postretirement benefit plans. The Company uses December 31 as the year-end measurement date for all of its pension plans and other postretirement benefit plans. | ||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||
The net periodic benefit cost for pension and other postretirement benefit plans consisted of the following components: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Service cost | $ | 682 | $ | 555 | $ | 619 | $ | 102 | $ | 82 | $ | 110 | ||||||||||||||||||||
Interest cost | 665 | 661 | 718 | 107 | 121 | 141 | ||||||||||||||||||||||||||
Expected return on plan assets | (1,097 | ) | (970 | ) | (972 | ) | (126 | ) | (136 | ) | (142 | ) | ||||||||||||||||||||
Net amortization | 336 | 185 | 201 | (50 | ) | (35 | ) | (17 | ) | |||||||||||||||||||||||
Termination benefits | 58 | 27 | 59 | 50 | 18 | 29 | ||||||||||||||||||||||||||
Curtailments | (23 | ) | (10 | ) | (86 | ) | (11 | ) | (7 | ) | 1 | |||||||||||||||||||||
Settlements | 23 | 18 | 4 | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 644 | $ | 466 | $ | 543 | $ | 72 | $ | 43 | $ | 122 | ||||||||||||||||||||
The increase in net periodic benefit cost for pension and other postretirement benefit plans in 2013 as compared with 2012 is largely attributable to a change in the discount rate. The net periodic benefit cost attributable to U.S. pension plans included in the above table was $348 million in 2013, $268 million in 2012 and $406 million in 2011. | ||||||||||||||||||||||||||||||||
In connection with restructuring actions (see Note 3), termination charges were recorded in 2013, 2012 and 2011 on pension and other postretirement benefit plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring activities, curtailments were recorded in 2013, 2012 and 2011 on pension and other postretirement benefit plans. | ||||||||||||||||||||||||||||||||
In addition, settlements were recorded in 2013, 2012 and 2011 on certain domestic and international pension plans. | ||||||||||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||||||||||
Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31 is as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other | |||||||||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Fair value of plan assets January 1 | $ | 15,349 | $ | 12,481 | $ | 1,760 | $ | 1,628 | ||||||||||||||||||||||||
Actual return on plan assets | 2,524 | 1,739 | 199 | 200 | ||||||||||||||||||||||||||||
Company contributions | 645 | 1,853 | 73 | 48 | ||||||||||||||||||||||||||||
Effects of exchange rate changes | (84 | ) | 3 | — | — | |||||||||||||||||||||||||||
Benefits paid | (780 | ) | (673 | ) | (119 | ) | (115 | ) | ||||||||||||||||||||||||
Settlements | (236 | ) | (75 | ) | — | — | ||||||||||||||||||||||||||
Other | 17 | 21 | — | (1 | ) | |||||||||||||||||||||||||||
Fair value of plan assets December 31 | $ | 17,435 | $ | 15,349 | $ | 1,913 | $ | 1,760 | ||||||||||||||||||||||||
Benefit obligation January 1 | 17,646 | 14,416 | 2,650 | 2,529 | ||||||||||||||||||||||||||||
Service cost | 682 | 555 | 102 | 82 | ||||||||||||||||||||||||||||
Interest cost | 665 | 661 | 107 | 121 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | (1,689 | ) | 2,660 | (428 | ) | 88 | ||||||||||||||||||||||||||
Benefits paid | (780 | ) | (673 | ) | (119 | ) | (115 | ) | ||||||||||||||||||||||||
Effects of exchange rate changes | (21 | ) | 67 | (5 | ) | — | ||||||||||||||||||||||||||
Plan amendments | (225 | ) | 2 | (38 | ) | (86 | ) | |||||||||||||||||||||||||
Curtailments | (61 | ) | (17 | ) | — | 1 | ||||||||||||||||||||||||||
Termination benefits | 58 | 27 | 50 | 18 | ||||||||||||||||||||||||||||
Settlements | (236 | ) | (75 | ) | — | — | ||||||||||||||||||||||||||
Other | 16 | 23 | 10 | 12 | ||||||||||||||||||||||||||||
Benefit obligation December 31 | $ | 16,055 | $ | 17,646 | $ | 2,329 | $ | 2,650 | ||||||||||||||||||||||||
Funded status December 31 | $ | 1,380 | $ | (2,297 | ) | $ | (416 | ) | $ | (890 | ) | |||||||||||||||||||||
Recognized as: | ||||||||||||||||||||||||||||||||
Other assets | $ | 2,811 | $ | 355 | $ | — | $ | 506 | ||||||||||||||||||||||||
Accrued and other current liabilities | (53 | ) | (50 | ) | (8 | ) | (9 | ) | ||||||||||||||||||||||||
Other noncurrent liabilities | (1,378 | ) | (2,602 | ) | (408 | ) | (1,387 | ) | ||||||||||||||||||||||||
The fair value of U.S. pension plan assets included in the preceding table was $10.0 billion and $8.7 billion at December 31, 2013 and 2012, respectively, and the projected benefit obligation of U.S. pension plans was $8.7 billion and $10.0 billion, respectively. Approximately 46% and 44% of the Company’s pension projected benefit obligation at December 31, 2013 and 2012, respectively, relates to international defined benefit plans, of which each individual plan is not significant relative to the total projected benefit obligation. | ||||||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the accumulated benefit obligation was $14.8 billion and $15.9 billion, respectively, for all pension plans, of which $8.0 billion and $9.0 billion, respectively, related to U.S. pension plans. | ||||||||||||||||||||||||||||||||
For pension plans with projected benefit obligations in excess of plan assets at December 31, 2013 and 2012, the fair value of plan assets was $1.5 billion and $12.8 billion, respectively, and the benefit obligations were $3.0 billion and $15.5 billion, respectively. For those plans with accumulated benefit obligations in excess of plan assets at December 31, 2013 and 2012, the fair value of plan assets was $1.4 billion and $6.1 billion, respectively, and the accumulated benefit obligations were $2.5 billion and $7.7 billion, respectively. | ||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
Entities are required to use a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest: | ||||||||||||||||||||||||||||||||
Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity. The Level 3 assets are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as instruments for which the determination of fair value requires significant judgment or estimation. At December 31, 2013 and 2012, $622 million and $692 million, respectively, or approximately 4% and 5%, respectively, of the Company’s pension investments at each year end, were categorized as Level 3 assets. | ||||||||||||||||||||||||||||||||
If the inputs used to measure the financial assets fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||||||||||||||||||||||||
The fair values of the Company’s pension plan assets at December 31 by asset category are as follows: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 88 | $ | 247 | $ | — | $ | 335 | $ | 142 | $ | 587 | $ | — | $ | 729 | ||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||
Developed markets equities | 808 | 7,643 | — | 8,451 | 683 | 5,986 | — | 6,669 | ||||||||||||||||||||||||
Emerging markets equities | 163 | 1,036 | — | 1,199 | 121 | 771 | — | 892 | ||||||||||||||||||||||||
Government and agency obligations | 293 | 1,180 | — | 1,473 | 279 | 720 | — | 999 | ||||||||||||||||||||||||
Corporate obligations | 188 | 77 | — | 265 | 166 | 94 | — | 260 | ||||||||||||||||||||||||
Fixed income obligations | 17 | 145 | — | 162 | 14 | 206 | — | 220 | ||||||||||||||||||||||||
Real estate (1) | 4 | 57 | 49 | 110 | 4 | 14 | 141 | 159 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Developed markets | 2,546 | — | — | 2,546 | 2,277 | — | — | 2,277 | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Government and agency obligations | 2 | 1,096 | — | 1,098 | 2 | 1,052 | — | 1,054 | ||||||||||||||||||||||||
Corporate obligations | — | 741 | — | 741 | — | 1,008 | — | 1,008 | ||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 299 | — | 299 | — | 269 | — | 269 | ||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||
Insurance contracts (2) | — | 128 | 540 | 668 | — | 117 | 496 | 613 | ||||||||||||||||||||||||
Derivatives | 1 | — | — | 1 | — | 162 | — | 162 | ||||||||||||||||||||||||
Other | — | 54 | 33 | 87 | — | 53 | 55 | 108 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 70 | $ | — | $ | 70 | ||||||||||||||||
$ | 4,110 | $ | 12,703 | $ | 622 | $ | 17,435 | $ | 3,688 | $ | 10,969 | $ | 692 | $ | 15,349 | |||||||||||||||||
(1) | The plans’ Level 3 investments in real estate funds are generally valued by market appraisals of the underlying investments in the funds. | |||||||||||||||||||||||||||||||
(2) | The plans’ Level 3 investments in insurance contracts are generally valued using a crediting rate that approximates market returns and invest in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. | |||||||||||||||||||||||||||||||
The table below provides a summary of the changes in fair value, including transfers in and/or out, of all financial assets measured at fair value using significant unobservable inputs (Level 3) for the Company’s pension plan assets: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Insurance | Real | Other | Total | Insurance | Real | Other | Total | |||||||||||||||||||||||||
Contracts | Estate | Contracts | Estate | |||||||||||||||||||||||||||||
Balance January 1 | $ | 496 | $ | 141 | $ | 55 | $ | 692 | $ | 428 | $ | 144 | $ | 65 | $ | 637 | ||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Relating to assets still held at December 31 | 30 | — | 1 | 31 | 35 | 20 | (2 | ) | 53 | |||||||||||||||||||||||
Relating to assets sold during the year | 1 | (1 | ) | 3 | 3 | 1 | (12 | ) | 5 | (6 | ) | |||||||||||||||||||||
Purchases | 18 | — | 3 | 21 | 21 | — | 4 | 25 | ||||||||||||||||||||||||
Sales | (2 | ) | — | (29 | ) | (31 | ) | (11 | ) | (1 | ) | (14 | ) | (26 | ) | |||||||||||||||||
Transfers (out of) into Level 3 | (3 | ) | (91 | ) | — | (94 | ) | 22 | (10 | ) | (3 | ) | 9 | |||||||||||||||||||
Balance December 31 | $ | 540 | $ | 49 | $ | 33 | $ | 622 | $ | 496 | $ | 141 | $ | 55 | $ | 692 | ||||||||||||||||
The fair values of the Company’s other postretirement benefit plan assets at December 31 by asset category are as follows: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 47 | $ | 20 | $ | — | $ | 67 | $ | 27 | $ | 48 | $ | — | $ | 75 | ||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||
Developed markets equities | 54 | 667 | — | 721 | 37 | 501 | — | 538 | ||||||||||||||||||||||||
Emerging markets equities | 36 | 95 | — | 131 | 37 | 75 | — | 112 | ||||||||||||||||||||||||
Fixed income obligations | 3 | 14 | — | 17 | 3 | 23 | — | 26 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Developed markets | 199 | — | — | 199 | 139 | — | — | 139 | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Government and agency obligations | — | 257 | — | 257 | — | 298 | — | 298 | ||||||||||||||||||||||||
Corporate obligations | — | 281 | — | 281 | — | 310 | — | 310 | ||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 219 | — | 219 | — | 238 | — | 238 | ||||||||||||||||||||||||
Other fixed income obligations | — | 21 | — | 21 | — | 24 | — | 24 | ||||||||||||||||||||||||
$ | 339 | $ | 1,574 | $ | — | $ | 1,913 | $ | 243 | $ | 1,517 | $ | — | $ | 1,760 | |||||||||||||||||
The Company has established investment guidelines for its U.S. pension and other postretirement plans to create an asset allocation that is expected to deliver a rate of return sufficient to meet the long-term obligation of each plan, given an acceptable level of risk. The target investment portfolio of the Company’s U.S. pension and other postretirement benefit plans is allocated 40% to 60% in U.S. equities, 20% to 40% in international equities, 15% to 25% in fixed-income investments, and up to 5% in cash and other investments. The portfolio’s equity weighting is consistent with the long-term nature of the plans’ benefit obligations. The expected annual standard deviation of returns of the target portfolio, which approximates 13%, reflects both the equity allocation and the diversification benefits among the asset classes in which the portfolio invests. For non-U.S. pension plans, the targeted investment portfolio varies based on the duration of pension liabilities and local government rules and regulations. Although a significant percentage of plan assets are invested in U.S. equities, concentration risk is mitigated through the use of strategies that are diversified within management guidelines. | ||||||||||||||||||||||||||||||||
Expected Contributions | ||||||||||||||||||||||||||||||||
Contributions to the pension plans and other postretirement benefit plans during 2014 are expected to be approximately $250 million and $75 million, respectively. | ||||||||||||||||||||||||||||||||
Expected Benefit Payments | ||||||||||||||||||||||||||||||||
Expected benefit payments are as follows: | ||||||||||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||||||||||
Benefits | Postretirement | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
2014 | $ | 651 | $ | 119 | ||||||||||||||||||||||||||||
2015 | 663 | 129 | ||||||||||||||||||||||||||||||
2016 | 675 | 134 | ||||||||||||||||||||||||||||||
2017 | 699 | 139 | ||||||||||||||||||||||||||||||
2018 | 739 | 145 | ||||||||||||||||||||||||||||||
2019 — 2023 | 4,440 | 811 | ||||||||||||||||||||||||||||||
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. | ||||||||||||||||||||||||||||||||
Amounts Recognized in Other Comprehensive Income | ||||||||||||||||||||||||||||||||
Net loss amounts reflect experience differentials primarily relating to differences between expected and actual returns on plan assets as well as the effects of changes in actuarial assumptions. Net loss amounts in excess of certain thresholds are amortized into net pension and other postretirement benefit cost over the average remaining service life of employees. The following amounts were reflected as components of OCI: | ||||||||||||||||||||||||||||||||
Pension Plans | Other Postretirement | |||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net gain (loss) arising during the period | $ | 3,189 | $ | (1,907 | ) | $ | (1,628 | ) | $ | 499 | $ | (24 | ) | $ | 106 | |||||||||||||||||
Prior service credit (cost) arising during the period | 203 | (13 | ) | 783 | 26 | 78 | 133 | |||||||||||||||||||||||||
$ | 3,392 | $ | (1,920 | ) | $ | (845 | ) | $ | 525 | $ | 54 | $ | 239 | |||||||||||||||||||
Net loss amortization included in benefit cost | $ | 407 | $ | 256 | $ | 196 | $ | 23 | $ | 31 | $ | 38 | ||||||||||||||||||||
Prior service (credit) cost amortization included in benefit cost | (71 | ) | (71 | ) | 5 | (73 | ) | (66 | ) | (55 | ) | |||||||||||||||||||||
$ | 336 | $ | 185 | $ | 201 | $ | (50 | ) | $ | (35 | ) | $ | (17 | ) | ||||||||||||||||||
The estimated net loss (gain) and prior service cost (credit) amounts that will be amortized from AOCI into net pension and postretirement benefit cost during 2014 are $214 million and $(146) million, respectively, for pension plans and are $2 million and $(75) million, respectively, for other postretirement benefit plans. | ||||||||||||||||||||||||||||||||
Actuarial Assumptions | ||||||||||||||||||||||||||||||||
The Company reassesses its benefit plan assumptions on a regular basis. The weighted average assumptions used in determining pension plan and U.S. pension and other postretirement benefit plan information are as follows: | ||||||||||||||||||||||||||||||||
Pension Plans | U.S. Pension and Other | |||||||||||||||||||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net periodic benefit cost | ||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 4.7 | % | 5.2 | % | 4.1 | % | 4.8 | % | 5.4 | % | ||||||||||||||||||||
Expected rate of return on plan assets | 7.5 | % | 7.5 | % | 7.5 | % | 8.5 | % | 8.7 | % | 8.7 | % | ||||||||||||||||||||
Salary growth rate | 4.2 | % | 4 | % | 4.2 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.9 | % | 4.7 | % | 5.1 | % | 4.1 | % | 4.8 | % | ||||||||||||||||||||
Salary growth rate | 4 | % | 4.2 | % | 4 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
For both the pension and other postretirement benefit plans, the discount rate is evaluated on measurement dates and modified to reflect the prevailing market rate of a portfolio of high-quality fixed-income debt instruments that would provide the future cash flows needed to pay the benefits included in the benefit obligation as they come due. The expected rate of return for both the pension and other postretirement benefit plans represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid and is determined on a plan basis. In developing the expected rate of return within each plan, long-term historical returns data are considered as well as actual returns on the plan assets and other capital markets experience. Using this reference information, the long-term return expectations for each asset category and a weighted average expected return for each plan’s target portfolio is developed, according to the allocation among those investment categories. The expected portfolio performance reflects the contribution of active management as appropriate. For 2014, the Company’s expected rate of return will range from 7.30% to 8.75% compared to a range of 6.00% to 8.75% in 2013 for its U.S. pension and other postretirement benefit plans. | ||||||||||||||||||||||||||||||||
The health care cost trend rate assumptions for other postretirement benefit plans are as follows: | ||||||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.1 | % | 7.5 | % | ||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline | 4.6 | % | 5 | % | ||||||||||||||||||||||||||||
Year that the trend rate reaches the ultimate trend rate | 2027 | 2018 | ||||||||||||||||||||||||||||||
A one percentage point change in the health care cost trend rate would have had the following effects: | ||||||||||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 38 | $ | (30 | ) | |||||||||||||||||||||||||||
Effect on benefit obligation | 316 | (262 | ) | |||||||||||||||||||||||||||||
Savings Plans | ||||||||||||||||||||||||||||||||
The Company also maintains defined contribution savings plans in the United States. The Company matches a percentage of each employee’s contributions consistent with the provisions of the plan for which the employee is eligible. Total employer contributions to these plans in 2013, 2012 and 2011 were $138 million, $146 million and $166 million, respectively. |
Other_Income_Expense_Net
Other (Income) Expense, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other (Income) Expense, Net | ' | |||||||||||
Other (Income) Expense, Net | ||||||||||||
Other (income) expense, net, consisted of: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Interest income | $ | (264 | ) | $ | (232 | ) | $ | (145 | ) | |||
Interest expense | 801 | 714 | 695 | |||||||||
Exchange losses | 290 | 185 | 143 | |||||||||
Other, net | (12 | ) | 449 | 253 | ||||||||
$ | 815 | $ | 1,116 | $ | 946 | |||||||
The increase in interest income in 2012 as compared with 2011 reflects the accretion of time value of money discounts related to certain accounts receivables, including accelerated accretion related to significant collections of accounts receivable in Spain (see Note 5). The increase in interest expense in 2013 as compared with 2012 is driven in part by the issuances of debt in September 2012 and May 2013. Exchange losses in 2013 reflect $140 million of losses due to a Venezuelan currency devaluation. In February 2013, the Venezuelan government devalued its currency (Bolívar Fuertes) from 4.30 VEF per U.S. dollar to 6.30 VEF per U.S. dollar. The Company recognized losses due to exchange of approximately $140 million in 2013 resulting from the remeasurement of the local monetary assets and liabilities at the new rate. Since January 2010, Venezuela has been designated hyperinflationary and, as a result, local foreign operations are remeasured in U.S. dollars with the impact recorded in results of operations. Other, net (as presented in the table above) in 2012 reflects a $493 million net charge related to the settlement of the ENHANCE Litigation (see Note 10). Other, net in 2011 reflects a $500 million charge related to the resolution of the arbitration proceeding involving the Company’s rights to market Remicade and Simponi (see Note 4), a $136 million gain on the disposition of the Company’s interest in the JJMCP joint venture (see Note 8), and a $127 million gain on the sale of certain manufacturing facilities and related assets (see Note 4). | ||||||||||||
Interest paid was $922 million in 2013, $808 million in 2012 and $600 million in 2011. Interest paid for 2011 is net of $288 million received by the Company from the termination of certain interest rate swap contracts during the year (see Note 5). |
Taxes_on_Income
Taxes on Income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Taxes on Income | ' | ||||||||||||||||||||
Taxes on Income | |||||||||||||||||||||
A reconciliation between the effective tax rate and the U.S. statutory rate is as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Tax Rate | Amount | Tax Rate | Amount | Tax Rate | ||||||||||||||||
U.S. statutory rate applied to income before taxes | $ | 1,941 | 35 | % | $ | 3,059 | 35 | % | $ | 2,567 | 35 | % | |||||||||
Differential arising from: | |||||||||||||||||||||
Foreign earnings | (1,316 | ) | (23.7 | ) | (1,955 | ) | (22.4 | ) | (2,220 | ) | (30.3 | ) | |||||||||
Tax settlements | (497 | ) | (9.0 | ) | (113 | ) | (1.3 | ) | (721 | ) | (9.8 | ) | |||||||||
The American Taxpayer Relief Act of 2012 | (269 | ) | (4.8 | ) | — | — | — | — | |||||||||||||
Unremitted foreign earnings | (81 | ) | (1.5 | ) | (11 | ) | (0.1 | ) | (86 | ) | (1.2 | ) | |||||||||
Tax rate changes | (10 | ) | (0.2 | ) | 57 | 0.6 | (295 | ) | (4.0 | ) | |||||||||||
Amortization of purchase accounting adjustments | 934 | 16.8 | 905 | 10.3 | 875 | 11.9 | |||||||||||||||
Restructuring | 224 | 4 | 62 | 0.7 | 163 | 2.2 | |||||||||||||||
U.S. health care reform legislation | 65 | 1.2 | 60 | 0.7 | 50 | 0.7 | |||||||||||||||
Intangible asset impairment charges | 56 | 1 | 40 | 0.5 | (5 | ) | (0.1 | ) | |||||||||||||
Vioxx and ENHANCE litigation settlements | — | — | 98 | 1.2 | — | — | |||||||||||||||
Arbitration settlement charge | — | — | — | — | 177 | 2.4 | |||||||||||||||
State taxes | 44 | 0.8 | 31 | 0.3 | 72 | 1 | |||||||||||||||
Other (1) | (63 | ) | (1.1 | ) | 207 | 2.4 | 365 | 5 | |||||||||||||
$ | 1,028 | 18.5 | % | $ | 2,440 | 27.9 | % | $ | 942 | 12.8 | % | ||||||||||
(1) | Other includes the tax effect of contingency reserves, research credits and miscellaneous items. | ||||||||||||||||||||
The foreign earnings tax rate differentials in the tax rate reconciliation above primarily reflect the impacts of operations in jurisdictions with different tax rates than the United States, particularly Singapore, Ireland, Switzerland and Puerto Rico (which operates under a tax incentive grant), where the earnings have been indefinitely reinvested, thereby yielding a favorable impact on the effective tax rate as compared with the 35.0% U.S. statutory rate. The foreign earnings tax rate differentials do not include the impact of intangible asset impairment charges, amortization of purchase accounting adjustments, restructuring costs and the arbitration settlement charge. These items are presented separately as they each represent a significant, separately disclosed pretax cost or charge, and a substantial portion of each of these items relates to jurisdictions with lower tax rates than the United States. Therefore, the impact of recording these expense items in lower tax rate jurisdictions is an unfavorable impact on the effective tax rate as compared to the 35.0% U.S. statutory rate. | |||||||||||||||||||||
The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013, extending the research credit and the controlled foreign corporation look-through provisions for two years retroactively from January 1, 2012 through December 31, 2013. The Company has recorded the entire 2012 benefit of this legislation in 2013, the financial statements period that includes the date of enactment, and that impact is reflected in the reconciliation above. | |||||||||||||||||||||
Income before taxes consisted of: | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||
Domestic | $ | 3,513 | $ | 4,500 | $ | 2,626 | |||||||||||||||
Foreign | 2,032 | 4,239 | 4,708 | ||||||||||||||||||
$ | 5,545 | $ | 8,739 | $ | 7,334 | ||||||||||||||||
Taxes on income consisted of: | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||
Current provision | |||||||||||||||||||||
Federal | $ | 568 | $ | 1,346 | $ | 859 | |||||||||||||||
Foreign | 923 | 651 | 1,568 | ||||||||||||||||||
State | (133 | ) | (226 | ) | 52 | ||||||||||||||||
1,358 | 1,771 | 2,479 | |||||||||||||||||||
Deferred provision | |||||||||||||||||||||
Federal | 30 | 749 | (584 | ) | |||||||||||||||||
Foreign | (398 | ) | (323 | ) | (683 | ) | |||||||||||||||
State | 38 | 243 | (270 | ) | |||||||||||||||||
(330 | ) | 669 | (1,537 | ) | |||||||||||||||||
$ | 1,028 | $ | 2,440 | $ | 942 | ||||||||||||||||
Deferred income taxes at December 31 consisted of: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Intangibles | $ | — | $ | 3,772 | $ | — | $ | 4,584 | |||||||||||||
Inventory related | 49 | 604 | 79 | 488 | |||||||||||||||||
Accelerated depreciation | 125 | 1,215 | 129 | 1,348 | |||||||||||||||||
Unremitted foreign earnings | — | 2,361 | — | 2,435 | |||||||||||||||||
Equity investments | — | 539 | — | 451 | |||||||||||||||||
Pensions and other postretirement benefits | 162 | 543 | 1,098 | 109 | |||||||||||||||||
Compensation related | 600 | — | 748 | — | |||||||||||||||||
Unrecognized tax benefits | 497 | — | 706 | — | |||||||||||||||||
Net operating losses and other tax credit carryforwards | 225 | — | 425 | — | |||||||||||||||||
Other | 1,605 | 71 | 1,798 | 91 | |||||||||||||||||
Subtotal | 3,263 | 9,105 | 4,983 | 9,506 | |||||||||||||||||
Valuation allowance | (205 | ) | (107 | ) | |||||||||||||||||
Total deferred taxes | $ | 3,058 | $ | 9,105 | $ | 4,876 | $ | 9,506 | |||||||||||||
Net deferred income taxes | $ | 6,047 | $ | 4,630 | |||||||||||||||||
Recognized as: | |||||||||||||||||||||
Deferred income taxes and other current assets | $ | 572 | $ | 624 | |||||||||||||||||
Other assets | 381 | 527 | |||||||||||||||||||
Income taxes payable | $ | 224 | $ | 41 | |||||||||||||||||
Deferred income taxes | 6,776 | 5,740 | |||||||||||||||||||
The Company has net operating loss (“NOL”) carryforwards in several jurisdictions. As of December 31, 2013, approximately $170 million of deferred taxes on NOL carryforwards relate to foreign jurisdictions, none of which are individually significant. Approximately $205 million of valuation allowances have been established on these foreign NOL carryforwards and other foreign deferred tax assets. In addition, the Company has approximately $55 million of deferred tax assets relating to various U.S. tax credit carryforwards and NOL carryforwards, all of which are expected to be fully utilized prior to expiry. | |||||||||||||||||||||
Income taxes paid in 2013, 2012 and 2011 were $2.3 billion, $2.5 billion and $2.7 billion, respectively. Tax benefits relating to stock option exercises reflected in paid-in capital were $61 million in 2013 and $94 million in 2012. These amounts were not material in 2011. | |||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance January 1 | $ | 4,425 | $ | 4,277 | $ | 4,919 | |||||||||||||||
Additions related to current year positions | 320 | 496 | 695 | ||||||||||||||||||
Additions related to prior year positions | 177 | 58 | 145 | ||||||||||||||||||
Reductions for tax positions of prior years (1) | (747 | ) | (320 | ) | (1,223 | ) | |||||||||||||||
Settlements | (603 | ) | (67 | ) | (259 | ) | |||||||||||||||
Lapse of statute of limitations | (69 | ) | (19 | ) | — | ||||||||||||||||
Balance December 31 | $ | 3,503 | $ | 4,425 | $ | 4,277 | |||||||||||||||
(1) | Amounts reflect the settlements with the IRS and CRA as discussed below. | ||||||||||||||||||||
If the Company were to recognize the unrecognized tax benefits of $3.5 billion at December 31, 2013, the income tax provision would reflect a favorable net impact of $3.3 billion. | |||||||||||||||||||||
The Company is under examination by numerous tax authorities in various jurisdictions globally. The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits as of December 31, 2013 could decrease by up to $128 million in the next 12 months as a result of various audit closures, settlements or the expiration of the statute of limitations. The ultimate finalization of the Company’s examinations with relevant taxing authorities can include formal administrative and legal proceedings, which could have a significant impact on the timing of the reversal of unrecognized tax benefits. The Company believes that its reserves for uncertain tax positions are adequate to cover existing risks or exposures. | |||||||||||||||||||||
Interest and penalties associated with uncertain tax positions amounted to a benefit of $319 million in 2013, $88 million in 2012 and $95 million in 2011. These amounts reflect the beneficial impacts of various tax settlements, including those discussed below. Liabilities for accrued interest and penalties were $665 million and $1.2 billion as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
In 2013, the Internal Revenue Service (“IRS”) finalized its examination of Schering-Plough’s 2007-2009 tax years. The Company’s unrecognized tax benefits for the years under examination exceeded the adjustments related to this examination period and therefore the Company recorded a net $165 million tax provision benefit in 2013. | |||||||||||||||||||||
In 2010, the IRS finalized its examination of Schering-Plough’s 2003-2006 tax years. In this audit cycle, the Company reached an agreement with the IRS on an adjustment to income related to intercompany pricing matters. This income adjustment mostly reduced NOLs and other tax credit carryforwards. The Company’s reserves for uncertain tax positions were adequate to cover all adjustments related to this examination period. Additionally, as previously disclosed, the Company was seeking resolution of one issue raised during this examination through the IRS administrative appeals process. In 2013, the Company recorded an out-of-period net tax benefit of $160 million related to this issue, which was settled in the fourth quarter of 2012, with final resolution relating to interest owed being reached in the first quarter of 2013. The Company’s unrecognized tax benefits related to this issue exceeded the settlement amount. Management has concluded that the exclusion of this benefit is not material to current or prior year financial statements. | |||||||||||||||||||||
As previously disclosed, the Canada Revenue Agency (the “CRA”) had proposed adjustments for 1999 and 2000 relating to intercompany pricing matters and, in July 2011, the CRA issued assessments for other miscellaneous audit issues for tax years 2001-2004. In 2012, Merck and the CRA reached a settlement for these years that calls for Merck to pay additional Canadian tax of approximately $65 million. The Company’s unrecognized tax benefits related to these matters exceeded the settlement amount and therefore the Company recorded a net $112 million tax provision benefit in 2012. A portion of the taxes paid is expected to be creditable for U.S. tax purposes. The Company had previously established reserves for these matters. The resolution of these matters did not have a material effect on the Company’s results of operations, financial position or liquidity. | |||||||||||||||||||||
In 2011, the IRS concluded its examination of Merck’s 2002-2005 federal income tax returns and as a result the Company was required to make net payments of approximately $465 million. The Company’s unrecognized tax benefits for the years under examination exceeded the adjustments related to this examination period and therefore the Company recorded a net $700 million tax provision benefit in 2011. This net benefit reflects the decrease of unrecognized tax benefits for the years under examination partially offset by increases to unrecognized tax benefits for years subsequent to the examination period as a result of this settlement. The Company disagrees with the IRS treatment of one issue raised during this examination and is appealing the matter through the IRS administrative process. | |||||||||||||||||||||
In addition, various state and foreign tax examinations are in progress. For most of its other significant tax jurisdictions (both U.S. state and foreign), the Company’s income tax returns are open for examination for the period 2003 through 2013. | |||||||||||||||||||||
At December 31, 2013, foreign earnings of $57.1 billion have been retained indefinitely by subsidiary companies for reinvestment; therefore, no provision has been made for income taxes that would be payable upon the distribution of such earnings and it would not be practicable to determine the amount of the related unrecognized deferred income tax liability. In addition, the Company has subsidiaries operating in Puerto Rico and Singapore under tax incentive grants that began to expire in 2013. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings per Share | ' | |||||||||||
Earnings per Share | ||||||||||||
Prior to 2013, the Company calculated earnings per share pursuant to the two-class method under which all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. RSUs and certain PSUs granted before December 31, 2009 (which generally have a three year vesting period) to certain management level employees met the definition of participating securities. RSUs and PSUs issued on or after January 1, 2010, do not meet the definition of participating securities; therefore, beginning in 2013 the Company no longer applies the two-class method. | ||||||||||||
The calculations of earnings per share are as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Basic Earnings per Common Share | ||||||||||||
Net income attributable to Merck & Co., Inc. | $ | 4,404 | $ | 6,168 | $ | 6,272 | ||||||
Less: Income allocated to participating securities | — | 3 | 15 | |||||||||
Net income allocated to common shareholders | $ | 4,404 | $ | 6,165 | $ | 6,257 | ||||||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||||||||
$ | 1.49 | $ | 2.03 | $ | 2.04 | |||||||
Earnings per Common Share Assuming Dilution | ||||||||||||
Net income attributable to Merck & Co., Inc. | $ | 4,404 | $ | 6,168 | $ | 6,272 | ||||||
Less: Income allocated to participating securities | — | 3 | 15 | |||||||||
Net income allocated to common shareholders | $ | 4,404 | $ | 6,165 | $ | 6,257 | ||||||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||||||||
Common shares issuable (1) | 33 | 35 | 23 | |||||||||
Average common shares outstanding assuming dilution | 2,996 | 3,076 | 3,094 | |||||||||
$ | 1.47 | $ | 2 | $ | 2.02 | |||||||
(1) | Issuable primarily under share-based compensation plans. | |||||||||||
In 2013, 2012 and 2011, 25 million, 104 million and 169 million, respectively, of common shares issuable under share-based compensation plans were excluded from the computation of earnings per common share assuming dilution because the effect would have been antidilutive. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
In the first quarter of 2013, the Company adopted guidance issued by the FASB that requires additional disclosure related to the impact of reclassification adjustments out of AOCI on net income. Changes in AOCI by component are as follows: | ||||||||||||||||||||
Derivatives | Investments | Employee | Cumulative | Accumulated Other | ||||||||||||||||
Benefit | Translation | Comprehensive | ||||||||||||||||||
Plans | Adjustment | Income (Loss) | ||||||||||||||||||
Balance January 1, 2011, net of taxes | $ | 41 | $ | 31 | $ | (2,043 | ) | $ | (1,245 | ) | $ | (3,216 | ) | |||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | (143 | ) | (10 | ) | (573 | ) | 435 | (291 | ) | |||||||||||
Tax | 56 | 5 | 187 | (1 | ) | 247 | ||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (87 | ) | (5 | ) | (386 | ) | 434 | (44 | ) | |||||||||||
Reclassification adjustments, pretax | 83 | (7 | ) | 151 | — | 227 | ||||||||||||||
Tax | (33 | ) | 2 | (68 | ) | — | (99 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 50 | (1) | (5 | ) | (2) | 83 | (3) | — | 128 | |||||||||||
Other comprehensive income (loss), net of taxes | (37 | ) | (10 | ) | (303 | ) | 434 | 84 | ||||||||||||
Balance December 31, 2011, net of taxes | 4 | 21 | (2,346 | ) | (811 | ) | (3,132 | ) | ||||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | (198 | ) | 74 | (1,852 | ) | (99 | ) | (2,075 | ) | |||||||||||
Tax | 77 | (10 | ) | 450 | (81 | ) | 436 | |||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (121 | ) | 64 | (1,402 | ) | (180 | ) | (1,639 | ) | |||||||||||
Reclassification adjustments, pretax | 33 | (13 | ) | 136 | — | 156 | ||||||||||||||
Tax | (13 | ) | 1 | (55 | ) | — | (67 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 20 | (1) | (12 | ) | (2) | 81 | (3) | — | 89 | |||||||||||
Other comprehensive income (loss), net of taxes | (101 | ) | 52 | (1,321 | ) | (180 | ) | (1,550 | ) | |||||||||||
Balance December 31, 2012, net of taxes | (97 | ) | 73 | (3,667 | ) | (4) | (991 | ) | (4,682 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | 335 | 33 | 3,917 | (383 | ) | 3,902 | ||||||||||||||
Tax | (132 | ) | (23 | ) | (1,365 | ) | (100 | ) | (1,620 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 203 | 10 | 2,552 | (483 | ) | 2,282 | ||||||||||||||
Reclassification adjustments, pretax | 42 | (39 | ) | 286 | — | 289 | ||||||||||||||
Tax | (16 | ) | 10 | (80 | ) | — | (86 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 26 | (1) | (29 | ) | (2) | 206 | (3) | — | 203 | |||||||||||
Other comprehensive income (loss), net of taxes | 229 | (19 | ) | 2,758 | (483 | ) | 2,485 | |||||||||||||
Balance December 31, 2013, net of taxes | $ | 132 | $ | 54 | $ | (909 | ) | (4) | $ | (1,474 | ) | $ | (2,197 | ) | ||||||
-1 | Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales. | |||||||||||||||||||
-2 | Represents net realized gains on the sales of available-for-sale investments that were reclassified from AOCI to Other (income) expense, net. | |||||||||||||||||||
-3 | Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 13). | |||||||||||||||||||
(4) | Includes pension plan net loss of $(1.7) billion and $(4.1) billion at December 31, 2013 and 2012, respectively, and other postretirement benefit plan net loss of $(80) million and $(414) million at December 31, 2013 and in 2012, respectively, as well as pension plan prior service credit of $559 million and $449 million at December 31, 2013 and 2012, respectively, and other postretirement benefit plan prior service credit of $331 million and $354 million at December 31, 2013 and 2012. | |||||||||||||||||||
Included in cumulative translation adjustment are pretax gains of approximately $392 million for 2011 relating to translation impacts of intangible assets recorded in conjunction with the Merger. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting | ||||||||||||
The Company’s operations are principally managed on a products basis and are comprised of four operating segments – Pharmaceutical, Animal Health, Consumer Care and Alliances (which includes revenue and equity income from the Company’s relationship with AZLP). The Animal Health, Consumer Care and Alliances segments are not material for separate reporting and are included in all other in the table below. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities. A large component of pediatric and adolescent vaccines is sold to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles. The Company also has animal health operations that discover, develop, manufacture and market animal health products, including vaccines, which the Company sells to veterinarians, distributors and animal producers. Additionally, the Company has consumer care operations that develop, manufacture and market over-the-counter, foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets, as well as club stores and specialty channels. | ||||||||||||
The accounting policies for the segments described above are the same as those described in Note 2. | ||||||||||||
Sales of the Company’s products were as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Primary Care and Women’s Health | ||||||||||||
Cardiovascular | ||||||||||||
Zetia | $ | 2,658 | $ | 2,567 | $ | 2,428 | ||||||
Vytorin | 1,643 | 1,747 | 1,882 | |||||||||
Diabetes and Obesity | ||||||||||||
Januvia | 4,004 | 4,086 | 3,324 | |||||||||
Janumet | 1,829 | 1,659 | 1,363 | |||||||||
Respiratory | ||||||||||||
Nasonex | 1,335 | 1,268 | 1,286 | |||||||||
Singulair | 1,196 | 3,853 | 5,479 | |||||||||
Dulera | 324 | 207 | 96 | |||||||||
Asmanex | 184 | 185 | 206 | |||||||||
Women’s Health and Endocrine | ||||||||||||
NuvaRing | 686 | 623 | 623 | |||||||||
Fosamax | 560 | 676 | 855 | |||||||||
Follistim AQ | 481 | 468 | 530 | |||||||||
Implanon | 403 | 348 | 294 | |||||||||
Cerazette | 208 | 271 | 268 | |||||||||
Other | ||||||||||||
Arcoxia | 484 | 453 | 431 | |||||||||
Avelox | 140 | 201 | 322 | |||||||||
Hospital and Specialty | ||||||||||||
Immunology | ||||||||||||
Remicade | 2,271 | 2,076 | 2,667 | |||||||||
Simponi | 500 | 331 | 264 | |||||||||
Infectious Disease | ||||||||||||
Isentress | 1,643 | 1,515 | 1,359 | |||||||||
Cancidas | 660 | 619 | 640 | |||||||||
PegIntron | 496 | 653 | 657 | |||||||||
Invanz | 488 | 445 | 406 | |||||||||
Victrelis | 428 | 502 | 140 | |||||||||
Noxafil | 309 | 258 | 230 | |||||||||
Oncology | ||||||||||||
Temodar | 708 | 917 | 935 | |||||||||
Emend | 507 | 489 | 419 | |||||||||
Other | ||||||||||||
Cosopt/Trusopt | 416 | 444 | 477 | |||||||||
Bridion | 288 | 261 | 201 | |||||||||
Integrilin | 186 | 211 | 230 | |||||||||
Diversified Brands | ||||||||||||
Cozaar/Hyzaar | 1,006 | 1,284 | 1,663 | |||||||||
Primaxin | 335 | 384 | 515 | |||||||||
Zocor | 301 | 383 | 456 | |||||||||
Propecia | 283 | 424 | 447 | |||||||||
Clarinex | 235 | 393 | 621 | |||||||||
Remeron | 206 | 232 | 241 | |||||||||
Claritin Rx | 204 | 244 | 314 | |||||||||
Proscar | 183 | 217 | 223 | |||||||||
Maxalt | 149 | 638 | 639 | |||||||||
Vaccines (1) | ||||||||||||
Gardasil | 1,831 | 1,631 | 1,209 | |||||||||
ProQuad/M-M-R II/Varivax | 1,306 | 1,273 | 1,202 | |||||||||
Zostavax | 758 | 651 | 332 | |||||||||
Pneumovax 23 | 653 | 580 | 498 | |||||||||
RotaTeq | 636 | 601 | 651 | |||||||||
Other pharmaceutical (2) | 4,316 | 4,333 | 4,266 | |||||||||
Total Pharmaceutical segment sales | 37,437 | 40,601 | 41,289 | |||||||||
Other segment sales (3) | 6,325 | 6,412 | 6,428 | |||||||||
Total segment sales | 43,762 | 47,013 | 47,717 | |||||||||
Other (4) | 271 | 254 | 330 | |||||||||
$ | 44,033 | $ | 47,267 | $ | 48,047 | |||||||
(1) | These amounts do not reflect sales of vaccines sold in most major European markets through the Company’s joint venture, Sanofi Pasteur MSD, the results of which are reflected in Equity income from affiliates. These amounts do, however, reflect supply sales to Sanofi Pasteur MSD. | |||||||||||
(2) | Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. | |||||||||||
(3) | Represents the non-reportable segments of Animal Health, Consumer Care and Alliances. The Alliances segment includes revenue from the Company’s relationship with AZLP. | |||||||||||
(4) | Other revenues are primarily comprised of miscellaneous corporate revenues, third-party manufacturing sales, sales related to divested products or businesses and other supply sales not included in segment results. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales (see Note 3). In addition, other revenues in 2013 reflect $50 million of revenue for the out-license of a pipeline compound. | |||||||||||
Consolidated revenues by geographic area where derived are as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
United States | $ | 18,246 | $ | 20,392 | $ | 20,495 | ||||||
Europe, Middle East and Africa | 13,140 | 12,990 | 13,782 | |||||||||
Japan | 4,044 | 5,102 | 4,835 | |||||||||
Asia Pacific | 3,845 | 3,775 | 3,496 | |||||||||
Latin America | 3,203 | 3,389 | 3,472 | |||||||||
Other | 1,555 | 1,619 | 1,967 | |||||||||
$ | 44,033 | $ | 47,267 | $ | 48,047 | |||||||
A reconciliation of total segment profits to consolidated Income before taxes is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Segment profits: | ||||||||||||
Pharmaceutical segment | $ | 22,983 | $ | 25,852 | $ | 25,617 | ||||||
Other segments | 3,094 | 3,163 | 2,995 | |||||||||
Total segment profits | 26,077 | 29,015 | 28,612 | |||||||||
Other profits (losses) | 19 | 26 | (11 | ) | ||||||||
Unallocated: | ||||||||||||
Interest income | 264 | 232 | 145 | |||||||||
Interest expense | (801 | ) | (714 | ) | (695 | ) | ||||||
Equity income from affiliates | (159 | ) | 102 | 41 | ||||||||
Depreciation and amortization | (2,250 | ) | (2,059 | ) | (2,412 | ) | ||||||
Research and development | (6,381 | ) | (7,126 | ) | (7,251 | ) | ||||||
Amortization of purchase accounting adjustments | (4,690 | ) | (4,872 | ) | (5,000 | ) | ||||||
Restructuring costs | (1,709 | ) | (664 | ) | (1,306 | ) | ||||||
Net charge related to settlement of ENHANCE Litigation | — | (493 | ) | — | ||||||||
Arbitration settlement charge | — | — | (500 | ) | ||||||||
Other unallocated, net | (4,825 | ) | (4,708 | ) | (4,289 | ) | ||||||
$ | 5,545 | $ | 8,739 | $ | 7,334 | |||||||
Segment profits are comprised of segment sales less standard costs and certain operating expenses directly incurred by the segments. For internal management reporting presented to the chief operating decision maker, Merck does not allocate materials and production costs, other than standard costs, the majority of research and development expenses or general and administrative expenses, nor the cost of financing these activities. Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits. In addition, costs related to restructuring activities, as well as the amortization of purchase accounting adjustments are not allocated to segments. | ||||||||||||
Other profits (losses) are primarily comprised of miscellaneous corporate profits (losses), as well as operating profits (losses) related to third-party manufacturing sales, divested products or businesses and other supply sales. | ||||||||||||
Other unallocated, net includes expenses from corporate and manufacturing cost centers, product intangible asset impairment charges, gain or losses on sales of businesses and other miscellaneous income or expense items. | ||||||||||||
Equity income from affiliates and depreciation and amortization included in segment profits is as follows: | ||||||||||||
Pharmaceutical | All Other | Total | ||||||||||
Year Ended December 31, 2013 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 88 | $ | 475 | $ | 563 | ||||||
Depreciation and amortization | (27 | ) | (22 | ) | (49 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 36 | $ | 504 | $ | 540 | ||||||
Depreciation and amortization | (25 | ) | (20 | ) | (45 | ) | ||||||
Year Ended December 31, 2011 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 59 | $ | 510 | $ | 569 | ||||||
Depreciation and amortization | (51 | ) | (20 | ) | (71 | ) | ||||||
Property, plant and equipment, net by geographic area where located is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
United States | $ | 10,076 | $ | 10,687 | $ | 10,826 | ||||||
Europe, Middle East and Africa | 3,346 | 3,688 | 3,780 | |||||||||
Asia Pacific | 1,001 | 1,059 | 1,064 | |||||||||
Latin America | 242 | 250 | 234 | |||||||||
Japan | 211 | 243 | 279 | |||||||||
Other | 97 | 103 | 114 | |||||||||
$ | 14,973 | $ | 16,030 | $ | 16,297 | |||||||
The Company does not disaggregate assets on a products and services basis for internal management reporting and, therefore, such information is not presented. |
Summary_of_Accounting_Policies1
Summary of Accounting Policies Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation — The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. Intercompany balances and transactions are eliminated. Controlling interest is determined by majority ownership interest and the absence of substantive third-party participating rights or, in the case of variable interest entities, by majority exposure to expected losses, residual returns or both. For those consolidated subsidiaries where Merck ownership is less than 100%, the outside shareholders’ interests are shown as Noncontrolling interests in equity. Investments in affiliates over which the Company has significant influence but not a controlling interest, such as interests in entities owned equally by the Company and a third party that are under shared control, are carried on the equity basis. | |
Mergers and Acquisitions | ' |
Mergers and Acquisitions — In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company may be required to value assets at fair value measures that do not reflect the Company’s intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Company’s consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded. | |
Foreign Currency Translation | ' |
Foreign Currency Translation — The net assets of international subsidiaries where the local currencies have been determined to be the functional currencies are translated into U.S. dollars using current exchange rates. The U.S. dollar effects that arise from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation account, which is included in Accumulated other comprehensive income (loss) (“AOCI”) and reflected as a separate component of equity. For those subsidiaries that operate in highly inflationary economies and for those subsidiaries where the U.S. dollar has been determined to be the functional currency, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes included in Other (income) expense, net. | |
Cash Equivalents | ' |
Cash Equivalents — Cash equivalents are comprised of certain highly liquid investments with original maturities of less than three months. | |
Inventories | ' |
Inventories — Inventories are valued at the lower of cost or market. The cost of a substantial majority of domestic pharmaceutical and vaccine inventories is determined using the last-in, first-out (“LIFO”) method for both financial reporting and tax purposes. The cost of all other inventories is determined using the first-in, first-out (“FIFO”) method. Inventories consist of currently marketed products and certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. | |
Investments | ' |
Investments — Investments in marketable debt and equity securities classified as available-for-sale are reported at fair value. Fair values of the Company’s investments are determined using quoted market prices in active markets for identical assets or liabilities or quoted prices for similar assets or liabilities or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Changes in fair value that are considered temporary are reported net of tax in Other Comprehensive Income (“OCI”). For declines in the fair value of equity securities that are considered other-than-temporary, impairment losses are charged to Other (income) expense, net. The Company considers available evidence in evaluating potential impairments of its investments, including the duration and extent to which fair value is less than cost and, for equity securities, the Company’s ability and intent to hold the investments. For debt securities, an other-than-temporary impairment has occurred if the Company does not expect to recover the entire amortized cost basis of the debt security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis, the amount of the other-than-temporary impairment recognized in earnings, recorded in Other (income) expense, net, is limited to the portion attributed to credit loss. The remaining portion of the other-than-temporary impairment related to other factors is recognized in OCI. Realized gains and losses for both debt and equity securities are included in Other (income) expense, net. | |
Revenue Recognition | ' |
Revenue Recognition — Revenues from sales of products are recognized at the time of delivery when title and risk of loss passes to the customer. Recognition of revenue also requires reasonable assurance of collection of sales proceeds and completion of all performance obligations. Domestically, sales discounts are issued to customers as direct discounts at the point-of-sale or indirectly through an intermediary wholesaler, known as chargebacks, or indirectly in the form of rebates. Additionally, sales are generally made with a limited right of return under certain conditions. Revenues are recorded net of provisions for sales discounts and returns, which are established at the time of sale. In addition, revenues are recorded net of time value of money discounts if collection of accounts receivable is expected to be in excess of one year. Accruals for chargebacks are reflected as a direct reduction to accounts receivable and accruals for rebates are recorded as current liabilities. The accrued balances relative to the provisions for chargebacks and rebates included in Accounts receivable and Accrued and other current liabilities were $87 million and $1.6 billion, respectively, at December 31, 2013 and $120 million and $1.8 billion, respectively, at December 31, 2012. | |
The Company recognizes revenue from the sales of vaccines to the Federal government for placement into vaccine stockpiles in accordance with Securities and Exchange Commission (“SEC”) Interpretation, Commission Guidance Regarding Accounting for Sales of Vaccines and BioTerror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile. | |
Depreciation | ' |
Depreciation — Depreciation is provided over the estimated useful lives of the assets, principally using the straight-line method. For tax purposes, accelerated tax methods are used. The estimated useful lives primarily range from 10 to 50 years for Buildings, and from 3 to 15 years for Machinery, equipment and office furnishings. | |
Advertising and Promotion Costs | ' |
Advertising and Promotion Costs — Advertising and promotion costs are expensed as incurred. | |
Software Capitalization | ' |
Software Capitalization — The Company capitalizes certain costs incurred in connection with obtaining or developing internal-use software including external direct costs of material and services, and payroll costs for employees directly involved with the software development. Capitalized software costs are included in Property, plant and equipment and amortized beginning when the software project is substantially complete and the asset is ready for its intended use. Capitalized software costs associated with projects that are being amortized over 6 to 10 years (including the Company’s on-going multi-year implementation of an enterprise-wide resource planning system) were $529 million and $428 million, at December 31, 2013 and 2012, respectively. All other capitalized software costs are being amortized over periods ranging from 3 to 5 years. Costs incurred during the preliminary project stage and post-implementation stage, as well as maintenance and training costs, are expensed as incurred. | |
Goodwill | ' |
Goodwill — Goodwill represents the excess of the consideration transferred over the fair value of net assets of businesses purchased. Goodwill is assigned to reporting units and evaluated for impairment on at least an annual basis, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed. Based upon the Company’s most recent annual impairment test completed as of October 1, 2013, the Company concluded goodwill was not impaired. | |
Acquired Intangibles | ' |
Acquired Intangibles — Acquired intangibles include products and product rights, tradenames and patents, which are recorded at fair value, assigned an estimated useful life, and are amortized primarily on a straight-line basis over their estimated useful lives ranging from 3 to 40 years (see Note 7). The Company periodically evaluates whether current facts or circumstances indicate that the carrying values of its acquired intangibles may not be recoverable. If such circumstances are determined to exist, an estimate of the undiscounted future cash flows of these assets, or appropriate asset groupings, is compared to the carrying value to determine whether an impairment exists. If the asset is determined to be impaired, the loss is measured based on the difference between the carrying value of the intangible asset and its fair value, which is determined based on the net present value of estimated future cash flows. | |
In-Process Research and Development | ' |
In-Process Research and Development — In-process research and development (“IPR&D”) represents the fair value assigned to incomplete research projects that the Company acquires through business combinations which, at the time of acquisition, have not reached technological feasibility. The amounts are capitalized and are accounted for as indefinite-lived intangible assets, subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, Merck will make a determination as to the then useful life of the intangible asset, generally determined by the period in which the substantial majority of the cash flows are expected to be generated, and begin amortization. The Company tests IPR&D for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the IPR&D intangible asset is less than its carrying amount. If the Company concludes it is more likely than not that the fair value is less than the carrying amount, a quantitative test that compares the fair value of the IPR&D intangible asset with its carrying value is performed. If the fair value is less than the carrying amount, an impairment loss is recognized in operating results. | |
Research and Development | ' |
Research and Development — Research and development is expensed as incurred. Upfront and milestone payments due to third parties in connection with research and development collaborations prior to regulatory approval are expensed as incurred. Payments due to third parties upon or subsequent to regulatory approval are capitalized and amortized over the shorter of the remaining license or product patent life. Amounts due from collaborative partners related to development activities are generally reflected as a reduction of research and development expenses when the specific milestone has been achieved. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made. | |
Share-based Compensation | ' |
Share-Based Compensation — The Company expenses all share-based payments to employees over the requisite service period based on the grant-date fair value of the awards. | |
Restructuring Costs | ' |
Restructuring Costs — The Company records liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred. In accordance with existing benefit arrangements, employee termination costs are accrued when the restructuring actions are probable and estimable. When accruing these costs, the Company will recognize the amount within a range of costs that is the best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company recognizes the minimum amount within the range. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. | |
Contingencies and Legal Defense Costs | ' |
Contingencies and Legal Defense Costs — The Company records accruals for contingencies and legal defense costs expected to be incurred in connection with a loss contingency when it is probable that a liability has been incurred and the amount can be reasonably estimated. | |
Taxes on Income | ' |
Taxes on Income — Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based on enacted tax laws and rates. The Company evaluates tax positions to determine whether the benefits of tax positions are more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are more likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not more likely than not of being sustained upon audit, the Company does not recognize any portion of the benefit in the financial statements. The Company recognizes interest and penalties associated with uncertain tax positions as a component of Taxes on income in the Consolidated Statement of Income. | |
Use of Estimates | ' |
Use of Estimates — The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and, accordingly, include certain amounts that are based on management’s best estimates and judgments. Estimates are used when accounting for amounts recorded in connection with mergers and acquisitions, including initial fair value determinations of assets and liabilities, primarily IPR&D and other intangible assets, as well as subsequent fair value measurements. Additionally, estimates are used in determining such items as provisions for sales discounts and returns, depreciable and amortizable lives, recoverability of inventories, including those produced in preparation for product launches, amounts recorded for contingencies, environmental liabilities and other reserves, pension and other postretirement benefit plan assumptions, share-based compensation assumptions, restructuring costs, impairments of long-lived assets (including intangible assets and goodwill) and investments, and taxes on income. Because of the uncertainty inherent in such estimates, actual results may differ from these estimates. | |
Reclassifications | ' |
Reclassifications — Certain reclassifications have been made to prior year amounts to conform to the current year presentation. | |
Recently Adopted Accounting Standards | ' |
Recently Adopted Accounting Standards — In the first quarter of 2013, the Company adopted guidance issued by the Financial Accounting Standards Board (the “FASB”) that simplifies how an entity tests indefinite-lived intangibles for impairment. The amended guidance allows companies to first assess qualitative factors to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. The adoption of this guidance had no impact on the Company’s financial position and results of operations. |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Charges Related to Restructuring Program Activities by Type of Cost | ' | |||||||||||||||
The following table summarizes the charges related to restructuring program activities by type of cost: | ||||||||||||||||
Year Ended December 31, 2013 | Separation | Accelerated | Other | Total | ||||||||||||
Costs | Depreciation | |||||||||||||||
2013 Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 186 | $ | 7 | $ | 193 | ||||||||
Marketing and administrative | — | 72 | 3 | 75 | ||||||||||||
Research and development | — | 76 | (1 | ) | 75 | |||||||||||
Restructuring costs | 866 | — | 32 | 898 | ||||||||||||
866 | 334 | 41 | 1,241 | |||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | — | 151 | 98 | 249 | ||||||||||||
Marketing and administrative | — | 63 | 3 | 66 | ||||||||||||
Research and development | — | 27 | (1 | ) | 26 | |||||||||||
Restructuring costs | 481 | — | 284 | 765 | ||||||||||||
481 | 241 | 384 | 1,106 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | (2 | ) | 6 | 4 | |||||||||||
Marketing and administrative | — | 4 | — | 4 | ||||||||||||
Restructuring costs | 34 | — | 12 | 46 | ||||||||||||
34 | 2 | 18 | 54 | |||||||||||||
$ | 1,381 | $ | 577 | $ | 443 | $ | 2,401 | |||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 92 | $ | 70 | $ | 162 | ||||||||
Marketing and administrative | — | 75 | 6 | 81 | ||||||||||||
Research and development | — | 53 | 4 | 57 | ||||||||||||
Restructuring costs | 497 | — | 154 | 651 | ||||||||||||
497 | 220 | 234 | 951 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | 7 | 19 | 26 | ||||||||||||
Marketing and administrative | — | 8 | 1 | 9 | ||||||||||||
Restructuring costs | (8 | ) | — | 21 | 13 | |||||||||||
(8 | ) | 15 | 41 | 48 | ||||||||||||
$ | 489 | $ | 235 | $ | 275 | $ | 999 | |||||||||
Year Ended December 31, 2011 | ||||||||||||||||
Merger Restructuring Program | ||||||||||||||||
Materials and production | $ | — | $ | 282 | $ | 17 | $ | 299 | ||||||||
Marketing and administrative | — | 108 | 11 | 119 | ||||||||||||
Research and development | — | 151 | (17 | ) | 134 | |||||||||||
Restructuring costs | 1,117 | — | 177 | 1,294 | ||||||||||||
1,117 | 541 | 188 | 1,846 | |||||||||||||
2008 Restructuring Program | ||||||||||||||||
Materials and production | — | 24 | 5 | 29 | ||||||||||||
Research and development | — | 4 | — | 4 | ||||||||||||
Restructuring costs | (6 | ) | — | 18 | 12 | |||||||||||
(6 | ) | 28 | 23 | 45 | ||||||||||||
$ | 1,111 | $ | 569 | $ | 211 | $ | 1,891 | |||||||||
Charges and Spending Relating to Restructuring Activities by Program | ' | |||||||||||||||
The following table summarizes the charges and spending relating to restructuring activities by program: | ||||||||||||||||
Separation | Accelerated | Other | Total | |||||||||||||
Costs | Depreciation | |||||||||||||||
2013 Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
Expenses | 866 | 334 | 41 | 1,241 | ||||||||||||
(Payments) receipts, net | (121 | ) | — | 9 | (112 | ) | ||||||||||
Non-cash activity | — | (334 | ) | (27 | ) | (361 | ) | |||||||||
Restructuring reserves December 31, 2013 (1) | $ | 745 | $ | — | $ | 23 | $ | 768 | ||||||||
Merger Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2012 | $ | 1,144 | $ | — | $ | 51 | $ | 1,195 | ||||||||
Expenses | 497 | 220 | 234 | 951 | ||||||||||||
(Payments) receipts, net | (942 | ) | — | (170 | ) | (1,112 | ) | |||||||||
Non-cash activity | — | (220 | ) | (96 | ) | (316 | ) | |||||||||
Restructuring reserves December 31, 2012 | 699 | — | 19 | 718 | ||||||||||||
Expenses | 481 | 241 | 384 | 1,106 | ||||||||||||
(Payments) receipts, net | (517 | ) | — | (258 | ) | (775 | ) | |||||||||
Non-cash activity | 62 | (241 | ) | (133 | ) | (312 | ) | |||||||||
Restructuring reserves December 31, 2013 (1) | $ | 725 | $ | — | $ | 12 | $ | 737 | ||||||||
2008 Restructuring Program | ||||||||||||||||
Restructuring reserves January 1, 2012 | $ | 126 | $ | — | $ | — | $ | 126 | ||||||||
Expenses | (8 | ) | 15 | 41 | 48 | |||||||||||
(Payments) receipts, net | (41 | ) | — | (21 | ) | (62 | ) | |||||||||
Non-cash activity | — | (15 | ) | (20 | ) | (35 | ) | |||||||||
Restructuring reserves December 31, 2012 | 77 | — | — | 77 | ||||||||||||
Expenses | 34 | 2 | 18 | 54 | ||||||||||||
(Payments) receipts, net | (49 | ) | — | (11 | ) | (60 | ) | |||||||||
Non-cash activity | (62 | ) | (2 | ) | (7 | ) | (71 | ) | ||||||||
Restructuring reserves December 31, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
(1) | The cash outlays associated with the 2013 Restructuring Program are expected to be substantially completed by the end of 2015. The cash outlays associated with the Merger Restructuring Program were substantially completed by the end of 2013 with the exception of certain actions, principally manufacturing-related, which are expected to be substantially completed by 2016. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Derivatives on a Gross Basis Segregated Between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments | ' | |||||||||||||||||||||||||||||||
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments as of December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair Value of | U.S. Dollar | Fair Value of | U.S. Dollar | |||||||||||||||||||||||||||||
Derivative | Notional | Derivative | Notional | |||||||||||||||||||||||||||||
Balance Sheet Caption | Asset | Liability | Asset | Liability | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Interest rate swap contracts (non-current) | Other assets | $ | 13 | $ | — | $ | 1,550 | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest rate swap contracts (non-current) | Other noncurrent liabilities | — | 25 | 2,000 | — | — | — | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Deferred income taxes and other current assets | 493 | — | 4,427 | 281 | — | 6,646 | |||||||||||||||||||||||||
Foreign exchange contracts (non-current) | Other assets | 515 | — | 6,676 | 387 | — | 5,989 | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Accrued and other current liabilities | — | 19 | 1,659 | — | 13 | 938 | |||||||||||||||||||||||||
$ | 1,021 | $ | 44 | $ | 16,312 | $ | 668 | $ | 13 | $ | 13,573 | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
Foreign exchange contracts (current) | Deferred income taxes and other current assets | $ | 69 | $ | — | $ | 5,705 | $ | 55 | $ | — | $ | 4,548 | |||||||||||||||||||
Foreign exchange contracts (non-current) | Other assets | — | — | — | 8 | — | 232 | |||||||||||||||||||||||||
Foreign exchange contracts (current) | Accrued and other current liabilities | — | 140 | 7,892 | — | 216 | 8,203 | |||||||||||||||||||||||||
$ | 69 | $ | 140 | $ | 13,597 | $ | 63 | $ | 216 | $ | 12,983 | |||||||||||||||||||||
$ | 1,090 | $ | 184 | $ | 29,909 | $ | 731 | $ | 229 | $ | 26,556 | |||||||||||||||||||||
Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis | ' | |||||||||||||||||||||||||||||||
The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes at December 31: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||
Gross amounts recognized in the consolidated balance sheet | $ | 1,090 | $ | 184 | $ | 731 | $ | 229 | ||||||||||||||||||||||||
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet | (147 | ) | (147 | ) | (195 | ) | (195 | ) | ||||||||||||||||||||||||
Cash collateral (received) posted | (652 | ) | — | (305 | ) | — | ||||||||||||||||||||||||||
Net amounts | $ | 291 | $ | 37 | $ | 231 | $ | 34 | ||||||||||||||||||||||||
Location and Pretax Gain or Loss Amounts for Derivatives | ' | |||||||||||||||||||||||||||||||
The table below provides information on the location and pretax gain or loss amounts for derivatives that are: (i) designated in a fair value hedging relationship, (ii) designated in a foreign currency cash flow hedging relationship, (iii) designated in a foreign currency net investment hedging relationship and (iv) not designated in a hedging relationship: | ||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Derivatives designated in a fair value hedging relationship | ||||||||||||||||||||||||||||||||
Interest rate swap contracts | ||||||||||||||||||||||||||||||||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (1) | $ | 12 | $ | — | $ | (196 | ) | |||||||||||||||||||||||||
Amount of (gain) loss recognized in Other (income) expense, net on hedged item (1) | (14 | ) | — | 196 | ||||||||||||||||||||||||||||
Derivatives designated in foreign currency cash flow hedging relationships | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of loss reclassified from AOCI to Sales | 45 | 50 | 85 | |||||||||||||||||||||||||||||
Amount of (gain) loss recognized in OCI on derivatives | (306 | ) | 204 | 143 | ||||||||||||||||||||||||||||
Derivatives designated in foreign currency net investment hedging relationships | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of gain recognized in Other (income) expense, net on derivatives (2) | (10 | ) | (20 | ) | (10 | ) | ||||||||||||||||||||||||||
Amount of (gain) loss recognized in OCI on derivatives | (363 | ) | (208 | ) | 122 | |||||||||||||||||||||||||||
Derivatives not designated in a hedging relationship | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (3) | 183 | 382 | (113 | ) | ||||||||||||||||||||||||||||
Amount of loss recognized in Sales | 8 | 30 | — | |||||||||||||||||||||||||||||
(1) | There was $2 million of ineffectiveness on the hedge during 2013. | |||||||||||||||||||||||||||||||
(2) | There was no ineffectiveness on the hedge. Represents the amount excluded from hedge effectiveness testing. | |||||||||||||||||||||||||||||||
(3) | These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates | |||||||||||||||||||||||||||||||
Information on Available-for-Sale Investments | ' | |||||||||||||||||||||||||||||||
Information on available-for-sale investments at December 31 is as follows: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Fair | Amortized | Gross Unrealized | Fair | Amortized | Gross Unrealized | |||||||||||||||||||||||||||
Value | Cost | Gains | Losses | Value | Cost | Gains | Losses | |||||||||||||||||||||||||
Corporate notes and bonds | $ | 7,054 | $ | 7,037 | $ | 32 | $ | (15 | ) | $ | 5,063 | $ | 5,013 | $ | 52 | $ | (2 | ) | ||||||||||||||
Asset-backed securities | 1,300 | 1,303 | 1 | (4 | ) | 837 | 835 | 3 | (1 | ) | ||||||||||||||||||||||
U.S. government and agency securities | 1,236 | 1,239 | 1 | (4 | ) | 1,206 | 1,204 | 2 | — | |||||||||||||||||||||||
Commercial paper | 1,206 | 1,206 | — | — | 2,150 | 2,150 | — | — | ||||||||||||||||||||||||
Mortgage-backed securities | 476 | 479 | 2 | (5 | ) | 435 | 436 | 2 | (3 | ) | ||||||||||||||||||||||
Foreign government bonds | 125 | 126 | — | (1 | ) | 108 | 107 | 1 | — | |||||||||||||||||||||||
Equity securities | 471 | 397 | 74 | — | 403 | 370 | 33 | — | ||||||||||||||||||||||||
$ | 11,868 | $ | 11,787 | $ | 110 | $ | (29 | ) | $ | 10,202 | $ | 10,115 | $ | 93 | $ | (6 | ) | |||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis at December 31 are summarized below: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Corporate notes and bonds | $ | — | $ | 7,054 | $ | — | $ | 7,054 | $ | — | $ | 5,063 | $ | — | $ | 5,063 | ||||||||||||||||
Asset-backed securities (1) | — | 1,300 | — | 1,300 | — | 837 | — | 837 | ||||||||||||||||||||||||
U.S. government and agency securities | — | 1,236 | — | 1,236 | — | 1,206 | — | 1,206 | ||||||||||||||||||||||||
Commercial paper | — | 1,206 | — | 1,206 | — | 2,150 | — | 2,150 | ||||||||||||||||||||||||
Mortgage-backed securities (1) | — | 476 | — | 476 | — | 435 | — | 435 | ||||||||||||||||||||||||
Foreign government bonds | — | 125 | — | 125 | — | 108 | — | 108 | ||||||||||||||||||||||||
Equity securities | 238 | — | — | 238 | 196 | — | — | 196 | ||||||||||||||||||||||||
238 | 11,397 | — | 11,635 | 196 | 9,799 | — | 9,995 | |||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||
Securities held for employee compensation | 186 | 47 | — | 233 | 169 | 38 | — | 207 | ||||||||||||||||||||||||
Derivative assets (2) | ||||||||||||||||||||||||||||||||
Purchased currency options | — | 868 | — | 868 | — | 546 | — | 546 | ||||||||||||||||||||||||
Forward exchange contracts | — | 209 | — | 209 | — | 185 | — | 185 | ||||||||||||||||||||||||
Interest rate swaps | — | 13 | — | 13 | — | — | — | — | ||||||||||||||||||||||||
— | 1,090 | — | 1,090 | — | 731 | — | 731 | |||||||||||||||||||||||||
Total assets | $ | 424 | $ | 12,534 | $ | — | $ | 12,958 | $ | 365 | $ | 10,568 | $ | — | $ | 10,933 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative liabilities (2) | ||||||||||||||||||||||||||||||||
Forward exchange contracts | $ | — | $ | 134 | $ | — | $ | 134 | $ | — | $ | 216 | $ | — | $ | 216 | ||||||||||||||||
Written currency options | — | 25 | — | 25 | — | 13 | — | 13 | ||||||||||||||||||||||||
Interest rate swaps | — | 25 | — | 25 | — | — | — | — | ||||||||||||||||||||||||
Total liabilities | $ | — | $ | 184 | $ | — | $ | 184 | $ | — | $ | 229 | $ | — | $ | 229 | ||||||||||||||||
(1) | Primarily all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AAA and Moody’s Investors Service rating of Aaa), secured primarily by credit card, auto loan, and home equity receivables, with weighted-average lives of primarily 5 years or less. Mortgage-backed securities represent AAA-rated securities issued or unconditionally guaranteed as to payment of principal and interest by U.S. government agencies. | |||||||||||||||||||||||||||||||
(2) | The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories at December 31 consisted of: | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 1,738 | $ | 1,924 | ||||
Raw materials and work in process | 5,894 | 5,921 | ||||||
Supplies | 225 | 244 | ||||||
Total (approximates current cost) | 7,857 | 8,089 | ||||||
Increase to LIFO costs | 73 | 52 | ||||||
$ | 7,930 | $ | 8,141 | |||||
Recognized as: | ||||||||
Inventories | $ | 6,226 | $ | 6,535 | ||||
Other assets | 1,704 | 1,606 | ||||||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill Activity by Segment | ' | |||||||||||||||||||||||
The following table summarizes goodwill activity by segment: | ||||||||||||||||||||||||
Pharmaceutical | All Other | Total | ||||||||||||||||||||||
Goodwill balance January 1, 2012 | $ | 10,107 | $ | 2,048 | $ | 12,155 | ||||||||||||||||||
Other (1) | (21 | ) | — | (21 | ) | |||||||||||||||||||
Goodwill balance December 31, 2012 | 10,086 | 2,048 | 12,134 | |||||||||||||||||||||
Acquisitions | 103 | 188 | 291 | |||||||||||||||||||||
Divestitures | (45 | ) | — | (45 | ) | |||||||||||||||||||
Other (1) | (79 | ) | — | (79 | ) | |||||||||||||||||||
Goodwill balance December 31, 2013 | $ | 10,065 | $ | 2,236 | $ | 12,301 | ||||||||||||||||||
(1) Other includes cumulative translation adjustments on goodwill balances and certain other adjustments. | ||||||||||||||||||||||||
Other Intangibles | ' | |||||||||||||||||||||||
Other intangibles at December 31 consisted of: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Products and product rights | $ | 41,691 | $ | 21,216 | $ | 20,475 | $ | 41,932 | $ | 16,678 | $ | 25,254 | ||||||||||||
In-process research and development | 1,856 | — | 1,856 | 2,393 | — | 2,393 | ||||||||||||||||||
Tradenames | 1,632 | 310 | 1,322 | 1,521 | 236 | 1,285 | ||||||||||||||||||
Other | 958 | 810 | 148 | 896 | 745 | 151 | ||||||||||||||||||
$ | 46,137 | $ | 22,336 | $ | 23,801 | $ | 46,742 | $ | 17,659 | $ | 29,083 | |||||||||||||
Joint_Ventures_and_Other_Equit1
Joint Ventures and Other Equity Method Affiliates (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity Income from Affiliates | ' | |||||||||||
Equity income from affiliates reflects the performance of the Company’s joint ventures and other equity method affiliates and was comprised of the following: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
AstraZeneca LP | $ | 352 | $ | 621 | $ | 574 | ||||||
Other (1) | 52 | 21 | 36 | |||||||||
$ | 404 | $ | 642 | $ | 610 | |||||||
(1) Primarily reflects results from Sanofi Pasteur MSD and Johnson & Johnson°Merck Consumer Pharmaceuticals Company (which was disposed of on September 29, 2011). | ||||||||||||
Summarized Financial Information for AZLP | ' | |||||||||||
Summarized financial information for AZLP is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Sales | $ | 4,611 | $ | 4,694 | $ | 4,659 | ||||||
Materials and production costs | 2,222 | 2,177 | 2,023 | |||||||||
Other expense, net | 1,175 | 1,312 | 1,392 | |||||||||
Income before taxes (1) | $ | 1,214 | $ | 1,205 | $ | 1,244 | ||||||
December 31 | 2013 | 2012 | ||||||||||
Current assets | $ | 4,832 | $ | 3,662 | ||||||||
Noncurrent assets | 182 | 206 | ||||||||||
Current liabilities | 3,958 | 3,145 | ||||||||||
(1) | Merck’s partnership returns from AZLP are generally contractually determined as noted above and are not based on a percentage of income from AZLP, other than with respect to Merck’s 1% limited partnership interest. | |||||||||||
Summarized Financial Information for Affiliates (Excluding AZLP) | ' | |||||||||||
Summarized information for those affiliates (excluding AZLP disclosed separately above) is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011(1) | |||||||||
Sales | $ | 1,326 | $ | 1,295 | $ | 1,331 | ||||||
Materials and production costs | 581 | 573 | 584 | |||||||||
Other expense, net | 691 | 705 | 642 | |||||||||
Income before taxes | 54 | 17 | 105 | |||||||||
December 31 | 2013 | 2012 | ||||||||||
Current assets | $ | 1,486 | $ | 971 | ||||||||
Noncurrent assets | 149 | 112 | ||||||||||
Current liabilities | 456 | 480 | ||||||||||
Noncurrent liabilities | 154 | 97 | ||||||||||
(1) Includes information for the JJMCP joint venture until its divestiture on September 29, 2011. |
Loans_Payable_LongTerm_Debt_an1
Loans Payable, Long-Term Debt and Other Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt at December 31 consisted of: | ||||||||
2013 | 2012 | |||||||
2.80% notes due 2023 | $ | 1,749 | $ | — | ||||
6.50% notes due 2033 | 1,306 | 1,310 | ||||||
5.00% notes due 2019 | 1,293 | 1,294 | ||||||
4.15% notes due 2043 | 1,246 | — | ||||||
3.875% notes due 2021 | 1,148 | 1,147 | ||||||
6.55% notes due 2037 | 1,143 | 1,146 | ||||||
6.00% notes due 2017 | 1,095 | 1,112 | ||||||
4.00% notes due 2015 | 1,029 | 1,049 | ||||||
4.75% notes due 2015 | 1,023 | 1,044 | ||||||
2.40% notes due 2022 | 1,000 | 1,000 | ||||||
Floating-rate borrowing due 2018 | 1,000 | — | ||||||
1.10% notes due 2018 | 998 | 998 | ||||||
0.70% notes due 2016 | 997 | — | ||||||
1.30% notes due 2018 | 975 | — | ||||||
2.25% notes due 2016 | 866 | 874 | ||||||
5.85% notes due 2039 | 749 | 749 | ||||||
Floating-rate borrowing due 2016 | 500 | — | ||||||
6.40% debentures due 2028 | 499 | 499 | ||||||
5.75% notes due 2036 | 498 | 498 | ||||||
5.95% debentures due 2028 | 498 | 498 | ||||||
3.60% notes due 2042 | 492 | 492 | ||||||
6.30% debentures due 2026 | 249 | 248 | ||||||
5.375% euro-denominated notes due 2014 | — | 2,058 | ||||||
Other | 186 | 238 | ||||||
$ | 20,539 | $ | 16,254 | |||||
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Summary of Common Stock and Treasury Stock Transactions | ' | |||||||||||||||||
A summary of common stock and treasury stock transactions (shares in millions) is as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Common | Treasury | Common | Treasury | Common | Treasury | |||||||||||||
Stock | Stock | Stock | Stock | Stock | Stock | |||||||||||||
Balance January 1 | 3,577 | 550 | 3,577 | 536 | 3,577 | 495 | ||||||||||||
Purchases of treasury stock (1) | — | 139 | — | 62 | — | 58 | ||||||||||||
Issuances (2) | — | (39 | ) | — | (48 | ) | — | (17 | ) | |||||||||
Balance December 31 | 3,577 | 650 | 3,577 | 550 | 3,577 | 536 | ||||||||||||
(1) | Purchases of treasury stock in 2013 include 105 million shares purchased pursuant to an accelerated share repurchase agreement as discussed below. | |||||||||||||||||
(2) | Issuances primarily reflect activity under share-based compensation plans. |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Assumptions Used to Determine Weighted-Average Fair Value of Options Granted | ' | ||||||||||||||
The weighted average fair value of options granted in 2013, 2012 and 2011 was $6.21, $5.47 and $5.39 per option, respectively, and were determined using the following assumptions: | |||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | 4.2 | % | 4.4 | % | 4.3 | % | |||||||||
Risk-free interest rate | 1.2 | % | 1.3 | % | 2.5 | % | |||||||||
Expected volatility | 25 | % | 25.2 | % | 23.4 | % | |||||||||
Expected life (years) | 7 | 7 | 7 | ||||||||||||
Summarized Information Relative to Stock Option Plan Activity | ' | ||||||||||||||
Summarized information relative to stock option plan activity (options in thousands) is as follows: | |||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||
of Options | Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | |||||||||||||
Price | Contractual | ||||||||||||||
Term (Years) | |||||||||||||||
Outstanding January 1, 2013 | 165,941 | $ | 39.46 | ||||||||||||
Granted | 5,703 | 45.01 | |||||||||||||
Exercised | (33,278 | ) | 36.37 | ||||||||||||
Forfeited | (22,561 | ) | 49.01 | ||||||||||||
Outstanding December 31, 2013 | 115,805 | $ | 38.75 | 3.79 | $ | 1,320 | |||||||||
Exercisable December 31, 2013 | 101,600 | $ | 38.48 | 3.25 | $ | 1,187 | |||||||||
Additional Information Pertaining to Stock Option Plans | ' | ||||||||||||||
Additional information pertaining to stock option plans is provided in the table below: | |||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||
Total intrinsic value of stock options exercised | $ | 374 | $ | 528 | $ | 125 | |||||||||
Fair value of stock options vested | 42 | 80 | 189 | ||||||||||||
Cash received from the exercise of stock options | 1,210 | 1,310 | 321 | ||||||||||||
Summary of Nonvested RSU and PSU Activity | ' | ||||||||||||||
A summary of nonvested RSU and PSU activity (shares in thousands) is as follows: | |||||||||||||||
RSUs | PSUs | ||||||||||||||
Number | Weighted | Number | Weighted | ||||||||||||
of Shares | Average | of Shares | Average | ||||||||||||
Grant Date | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||
Nonvested January 1, 2013 | 22,743 | $ | 36.38 | 1,648 | $ | 33.78 | |||||||||
Granted | 6,394 | 45.04 | 963 | 38.25 | |||||||||||
Vested | (8,705 | ) | 34.1 | (839 | ) | 34.17 | |||||||||
Forfeited | (1,298 | ) | 40.02 | (99 | ) | 36.71 | |||||||||
Nonvested December 31, 2013 | 19,134 | $ | 40.07 | 1,673 | $ | 35.98 | |||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||||||||||
The net periodic benefit cost for pension and other postretirement benefit plans consisted of the following components: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Service cost | $ | 682 | $ | 555 | $ | 619 | $ | 102 | $ | 82 | $ | 110 | ||||||||||||||||||||
Interest cost | 665 | 661 | 718 | 107 | 121 | 141 | ||||||||||||||||||||||||||
Expected return on plan assets | (1,097 | ) | (970 | ) | (972 | ) | (126 | ) | (136 | ) | (142 | ) | ||||||||||||||||||||
Net amortization | 336 | 185 | 201 | (50 | ) | (35 | ) | (17 | ) | |||||||||||||||||||||||
Termination benefits | 58 | 27 | 59 | 50 | 18 | 29 | ||||||||||||||||||||||||||
Curtailments | (23 | ) | (10 | ) | (86 | ) | (11 | ) | (7 | ) | 1 | |||||||||||||||||||||
Settlements | 23 | 18 | 4 | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 644 | $ | 466 | $ | 543 | $ | 72 | $ | 43 | $ | 122 | ||||||||||||||||||||
Obligation and Funded Status | ' | |||||||||||||||||||||||||||||||
Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31 is as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other | |||||||||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Fair value of plan assets January 1 | $ | 15,349 | $ | 12,481 | $ | 1,760 | $ | 1,628 | ||||||||||||||||||||||||
Actual return on plan assets | 2,524 | 1,739 | 199 | 200 | ||||||||||||||||||||||||||||
Company contributions | 645 | 1,853 | 73 | 48 | ||||||||||||||||||||||||||||
Effects of exchange rate changes | (84 | ) | 3 | — | — | |||||||||||||||||||||||||||
Benefits paid | (780 | ) | (673 | ) | (119 | ) | (115 | ) | ||||||||||||||||||||||||
Settlements | (236 | ) | (75 | ) | — | — | ||||||||||||||||||||||||||
Other | 17 | 21 | — | (1 | ) | |||||||||||||||||||||||||||
Fair value of plan assets December 31 | $ | 17,435 | $ | 15,349 | $ | 1,913 | $ | 1,760 | ||||||||||||||||||||||||
Benefit obligation January 1 | 17,646 | 14,416 | 2,650 | 2,529 | ||||||||||||||||||||||||||||
Service cost | 682 | 555 | 102 | 82 | ||||||||||||||||||||||||||||
Interest cost | 665 | 661 | 107 | 121 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | (1,689 | ) | 2,660 | (428 | ) | 88 | ||||||||||||||||||||||||||
Benefits paid | (780 | ) | (673 | ) | (119 | ) | (115 | ) | ||||||||||||||||||||||||
Effects of exchange rate changes | (21 | ) | 67 | (5 | ) | — | ||||||||||||||||||||||||||
Plan amendments | (225 | ) | 2 | (38 | ) | (86 | ) | |||||||||||||||||||||||||
Curtailments | (61 | ) | (17 | ) | — | 1 | ||||||||||||||||||||||||||
Termination benefits | 58 | 27 | 50 | 18 | ||||||||||||||||||||||||||||
Settlements | (236 | ) | (75 | ) | — | — | ||||||||||||||||||||||||||
Other | 16 | 23 | 10 | 12 | ||||||||||||||||||||||||||||
Benefit obligation December 31 | $ | 16,055 | $ | 17,646 | $ | 2,329 | $ | 2,650 | ||||||||||||||||||||||||
Funded status December 31 | $ | 1,380 | $ | (2,297 | ) | $ | (416 | ) | $ | (890 | ) | |||||||||||||||||||||
Recognized as: | ||||||||||||||||||||||||||||||||
Other assets | $ | 2,811 | $ | 355 | $ | — | $ | 506 | ||||||||||||||||||||||||
Accrued and other current liabilities | (53 | ) | (50 | ) | (8 | ) | (9 | ) | ||||||||||||||||||||||||
Other noncurrent liabilities | (1,378 | ) | (2,602 | ) | (408 | ) | (1,387 | ) | ||||||||||||||||||||||||
Summary of Changes in Fair Value of Company's Level 3 Pension Plan Assets | ' | |||||||||||||||||||||||||||||||
The table below provides a summary of the changes in fair value, including transfers in and/or out, of all financial assets measured at fair value using significant unobservable inputs (Level 3) for the Company’s pension plan assets: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Insurance | Real | Other | Total | Insurance | Real | Other | Total | |||||||||||||||||||||||||
Contracts | Estate | Contracts | Estate | |||||||||||||||||||||||||||||
Balance January 1 | $ | 496 | $ | 141 | $ | 55 | $ | 692 | $ | 428 | $ | 144 | $ | 65 | $ | 637 | ||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Relating to assets still held at December 31 | 30 | — | 1 | 31 | 35 | 20 | (2 | ) | 53 | |||||||||||||||||||||||
Relating to assets sold during the year | 1 | (1 | ) | 3 | 3 | 1 | (12 | ) | 5 | (6 | ) | |||||||||||||||||||||
Purchases | 18 | — | 3 | 21 | 21 | — | 4 | 25 | ||||||||||||||||||||||||
Sales | (2 | ) | — | (29 | ) | (31 | ) | (11 | ) | (1 | ) | (14 | ) | (26 | ) | |||||||||||||||||
Transfers (out of) into Level 3 | (3 | ) | (91 | ) | — | (94 | ) | 22 | (10 | ) | (3 | ) | 9 | |||||||||||||||||||
Balance December 31 | $ | 540 | $ | 49 | $ | 33 | $ | 622 | $ | 496 | $ | 141 | $ | 55 | $ | 692 | ||||||||||||||||
Summary of Expected Benefit Payments | ' | |||||||||||||||||||||||||||||||
Expected benefit payments are as follows: | ||||||||||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||||||||||
Benefits | Postretirement | |||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||
2014 | $ | 651 | $ | 119 | ||||||||||||||||||||||||||||
2015 | 663 | 129 | ||||||||||||||||||||||||||||||
2016 | 675 | 134 | ||||||||||||||||||||||||||||||
2017 | 699 | 139 | ||||||||||||||||||||||||||||||
2018 | 739 | 145 | ||||||||||||||||||||||||||||||
2019 — 2023 | 4,440 | 811 | ||||||||||||||||||||||||||||||
Components of Other Comprehensive Income | ' | |||||||||||||||||||||||||||||||
The following amounts were reflected as components of OCI: | ||||||||||||||||||||||||||||||||
Pension Plans | Other Postretirement | |||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net gain (loss) arising during the period | $ | 3,189 | $ | (1,907 | ) | $ | (1,628 | ) | $ | 499 | $ | (24 | ) | $ | 106 | |||||||||||||||||
Prior service credit (cost) arising during the period | 203 | (13 | ) | 783 | 26 | 78 | 133 | |||||||||||||||||||||||||
$ | 3,392 | $ | (1,920 | ) | $ | (845 | ) | $ | 525 | $ | 54 | $ | 239 | |||||||||||||||||||
Net loss amortization included in benefit cost | $ | 407 | $ | 256 | $ | 196 | $ | 23 | $ | 31 | $ | 38 | ||||||||||||||||||||
Prior service (credit) cost amortization included in benefit cost | (71 | ) | (71 | ) | 5 | (73 | ) | (66 | ) | (55 | ) | |||||||||||||||||||||
$ | 336 | $ | 185 | $ | 201 | $ | (50 | ) | $ | (35 | ) | $ | (17 | ) | ||||||||||||||||||
Summary of Weighted Average Assumptions Used in Determining Pension Plan and U.S. Pension and Other Postretirement Benefit Plan Information | ' | |||||||||||||||||||||||||||||||
The Company reassesses its benefit plan assumptions on a regular basis. The weighted average assumptions used in determining pension plan and U.S. pension and other postretirement benefit plan information are as follows: | ||||||||||||||||||||||||||||||||
Pension Plans | U.S. Pension and Other | |||||||||||||||||||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net periodic benefit cost | ||||||||||||||||||||||||||||||||
Discount rate | 3.9 | % | 4.7 | % | 5.2 | % | 4.1 | % | 4.8 | % | 5.4 | % | ||||||||||||||||||||
Expected rate of return on plan assets | 7.5 | % | 7.5 | % | 7.5 | % | 8.5 | % | 8.7 | % | 8.7 | % | ||||||||||||||||||||
Salary growth rate | 4.2 | % | 4 | % | 4.2 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Benefit obligation | ||||||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.9 | % | 4.7 | % | 5.1 | % | 4.1 | % | 4.8 | % | ||||||||||||||||||||
Salary growth rate | 4 | % | 4.2 | % | 4 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||
Summary of Health Care Cost Trend Rate Assumptions for Other Postretirement Benefit Plans | ' | |||||||||||||||||||||||||||||||
The health care cost trend rate assumptions for other postretirement benefit plans are as follows: | ||||||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.1 | % | 7.5 | % | ||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline | 4.6 | % | 5 | % | ||||||||||||||||||||||||||||
Year that the trend rate reaches the ultimate trend rate | 2027 | 2018 | ||||||||||||||||||||||||||||||
One Percentage Point Change in Health Care Cost Trend Rate | ' | |||||||||||||||||||||||||||||||
A one percentage point change in the health care cost trend rate would have had the following effects: | ||||||||||||||||||||||||||||||||
One Percentage Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 38 | $ | (30 | ) | |||||||||||||||||||||||||||
Effect on benefit obligation | 316 | (262 | ) | |||||||||||||||||||||||||||||
Pension Plans, Defined Benefit [Member] | ' | |||||||||||||||||||||||||||||||
Fair Values of Pension Plan and Other Postretirement Benefit Plan Assets | ' | |||||||||||||||||||||||||||||||
The fair values of the Company’s pension plan assets at December 31 by asset category are as follows: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 88 | $ | 247 | $ | — | $ | 335 | $ | 142 | $ | 587 | $ | — | $ | 729 | ||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||
Developed markets equities | 808 | 7,643 | — | 8,451 | 683 | 5,986 | — | 6,669 | ||||||||||||||||||||||||
Emerging markets equities | 163 | 1,036 | — | 1,199 | 121 | 771 | — | 892 | ||||||||||||||||||||||||
Government and agency obligations | 293 | 1,180 | — | 1,473 | 279 | 720 | — | 999 | ||||||||||||||||||||||||
Corporate obligations | 188 | 77 | — | 265 | 166 | 94 | — | 260 | ||||||||||||||||||||||||
Fixed income obligations | 17 | 145 | — | 162 | 14 | 206 | — | 220 | ||||||||||||||||||||||||
Real estate (1) | 4 | 57 | 49 | 110 | 4 | 14 | 141 | 159 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Developed markets | 2,546 | — | — | 2,546 | 2,277 | — | — | 2,277 | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Government and agency obligations | 2 | 1,096 | — | 1,098 | 2 | 1,052 | — | 1,054 | ||||||||||||||||||||||||
Corporate obligations | — | 741 | — | 741 | — | 1,008 | — | 1,008 | ||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 299 | — | 299 | — | 269 | — | 269 | ||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||
Insurance contracts (2) | — | 128 | 540 | 668 | — | 117 | 496 | 613 | ||||||||||||||||||||||||
Derivatives | 1 | — | — | 1 | — | 162 | — | 162 | ||||||||||||||||||||||||
Other | — | 54 | 33 | 87 | — | 53 | 55 | 108 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 70 | $ | — | $ | 70 | ||||||||||||||||
$ | 4,110 | $ | 12,703 | $ | 622 | $ | 17,435 | $ | 3,688 | $ | 10,969 | $ | 692 | $ | 15,349 | |||||||||||||||||
(1) | The plans’ Level 3 investments in real estate funds are generally valued by market appraisals of the underlying investments in the funds. | |||||||||||||||||||||||||||||||
(2) | The plans’ Level 3 investments in insurance contracts are generally valued using a crediting rate that approximates market returns and invest in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. | |||||||||||||||||||||||||||||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | |||||||||||||||||||||||||||||||
Fair Values of Pension Plan and Other Postretirement Benefit Plan Assets | ' | |||||||||||||||||||||||||||||||
The fair values of the Company’s other postretirement benefit plan assets at December 31 by asset category are as follows: | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||||
In Active | Other | Unobservable | In Active | Other | Unobservable | |||||||||||||||||||||||||||
Markets for | Observable | Inputs | Markets for | Observable | Inputs | |||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | Identical Assets | Inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 47 | $ | 20 | $ | — | $ | 67 | $ | 27 | $ | 48 | $ | — | $ | 75 | ||||||||||||||||
Investment funds | ||||||||||||||||||||||||||||||||
Developed markets equities | 54 | 667 | — | 721 | 37 | 501 | — | 538 | ||||||||||||||||||||||||
Emerging markets equities | 36 | 95 | — | 131 | 37 | 75 | — | 112 | ||||||||||||||||||||||||
Fixed income obligations | 3 | 14 | — | 17 | 3 | 23 | — | 26 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Developed markets | 199 | — | — | 199 | 139 | — | — | 139 | ||||||||||||||||||||||||
Fixed income securities | ||||||||||||||||||||||||||||||||
Government and agency obligations | — | 257 | — | 257 | — | 298 | — | 298 | ||||||||||||||||||||||||
Corporate obligations | — | 281 | — | 281 | — | 310 | — | 310 | ||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 219 | — | 219 | — | 238 | — | 238 | ||||||||||||||||||||||||
Other fixed income obligations | — | 21 | — | 21 | — | 24 | — | 24 | ||||||||||||||||||||||||
$ | 339 | $ | 1,574 | $ | — | $ | 1,913 | $ | 243 | $ | 1,517 | $ | — | $ | 1,760 | |||||||||||||||||
Other_Income_Expense_Net_Table
Other (Income) Expense, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other (Income) Expense, Net | ' | |||||||||||
Other (income) expense, net, consisted of: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Interest income | $ | (264 | ) | $ | (232 | ) | $ | (145 | ) | |||
Interest expense | 801 | 714 | 695 | |||||||||
Exchange losses | 290 | 185 | 143 | |||||||||
Other, net | (12 | ) | 449 | 253 | ||||||||
$ | 815 | $ | 1,116 | $ | 946 | |||||||
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate | ' | ||||||||||||||||||||
A reconciliation between the effective tax rate and the U.S. statutory rate is as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Amount | Tax Rate | Amount | Tax Rate | Amount | Tax Rate | ||||||||||||||||
U.S. statutory rate applied to income before taxes | $ | 1,941 | 35 | % | $ | 3,059 | 35 | % | $ | 2,567 | 35 | % | |||||||||
Differential arising from: | |||||||||||||||||||||
Foreign earnings | (1,316 | ) | (23.7 | ) | (1,955 | ) | (22.4 | ) | (2,220 | ) | (30.3 | ) | |||||||||
Tax settlements | (497 | ) | (9.0 | ) | (113 | ) | (1.3 | ) | (721 | ) | (9.8 | ) | |||||||||
The American Taxpayer Relief Act of 2012 | (269 | ) | (4.8 | ) | — | — | — | — | |||||||||||||
Unremitted foreign earnings | (81 | ) | (1.5 | ) | (11 | ) | (0.1 | ) | (86 | ) | (1.2 | ) | |||||||||
Tax rate changes | (10 | ) | (0.2 | ) | 57 | 0.6 | (295 | ) | (4.0 | ) | |||||||||||
Amortization of purchase accounting adjustments | 934 | 16.8 | 905 | 10.3 | 875 | 11.9 | |||||||||||||||
Restructuring | 224 | 4 | 62 | 0.7 | 163 | 2.2 | |||||||||||||||
U.S. health care reform legislation | 65 | 1.2 | 60 | 0.7 | 50 | 0.7 | |||||||||||||||
Intangible asset impairment charges | 56 | 1 | 40 | 0.5 | (5 | ) | (0.1 | ) | |||||||||||||
Vioxx and ENHANCE litigation settlements | — | — | 98 | 1.2 | — | — | |||||||||||||||
Arbitration settlement charge | — | — | — | — | 177 | 2.4 | |||||||||||||||
State taxes | 44 | 0.8 | 31 | 0.3 | 72 | 1 | |||||||||||||||
Other (1) | (63 | ) | (1.1 | ) | 207 | 2.4 | 365 | 5 | |||||||||||||
$ | 1,028 | 18.5 | % | $ | 2,440 | 27.9 | % | $ | 942 | 12.8 | % | ||||||||||
(1) | Other includes the tax effect of contingency reserves, research credits and miscellaneous items. | ||||||||||||||||||||
Income Before Taxes | ' | ||||||||||||||||||||
Income before taxes consisted of: | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||
Domestic | $ | 3,513 | $ | 4,500 | $ | 2,626 | |||||||||||||||
Foreign | 2,032 | 4,239 | 4,708 | ||||||||||||||||||
$ | 5,545 | $ | 8,739 | $ | 7,334 | ||||||||||||||||
Taxes on Income | ' | ||||||||||||||||||||
Taxes on income consisted of: | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||
Current provision | |||||||||||||||||||||
Federal | $ | 568 | $ | 1,346 | $ | 859 | |||||||||||||||
Foreign | 923 | 651 | 1,568 | ||||||||||||||||||
State | (133 | ) | (226 | ) | 52 | ||||||||||||||||
1,358 | 1,771 | 2,479 | |||||||||||||||||||
Deferred provision | |||||||||||||||||||||
Federal | 30 | 749 | (584 | ) | |||||||||||||||||
Foreign | (398 | ) | (323 | ) | (683 | ) | |||||||||||||||
State | 38 | 243 | (270 | ) | |||||||||||||||||
(330 | ) | 669 | (1,537 | ) | |||||||||||||||||
$ | 1,028 | $ | 2,440 | $ | 942 | ||||||||||||||||
Deferred Income Taxes | ' | ||||||||||||||||||||
Deferred income taxes at December 31 consisted of: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Intangibles | $ | — | $ | 3,772 | $ | — | $ | 4,584 | |||||||||||||
Inventory related | 49 | 604 | 79 | 488 | |||||||||||||||||
Accelerated depreciation | 125 | 1,215 | 129 | 1,348 | |||||||||||||||||
Unremitted foreign earnings | — | 2,361 | — | 2,435 | |||||||||||||||||
Equity investments | — | 539 | — | 451 | |||||||||||||||||
Pensions and other postretirement benefits | 162 | 543 | 1,098 | 109 | |||||||||||||||||
Compensation related | 600 | — | 748 | — | |||||||||||||||||
Unrecognized tax benefits | 497 | — | 706 | — | |||||||||||||||||
Net operating losses and other tax credit carryforwards | 225 | — | 425 | — | |||||||||||||||||
Other | 1,605 | 71 | 1,798 | 91 | |||||||||||||||||
Subtotal | 3,263 | 9,105 | 4,983 | 9,506 | |||||||||||||||||
Valuation allowance | (205 | ) | (107 | ) | |||||||||||||||||
Total deferred taxes | $ | 3,058 | $ | 9,105 | $ | 4,876 | $ | 9,506 | |||||||||||||
Net deferred income taxes | $ | 6,047 | $ | 4,630 | |||||||||||||||||
Recognized as: | |||||||||||||||||||||
Deferred income taxes and other current assets | $ | 572 | $ | 624 | |||||||||||||||||
Other assets | 381 | 527 | |||||||||||||||||||
Income taxes payable | $ | 224 | $ | 41 | |||||||||||||||||
Deferred income taxes | 6,776 | 5,740 | |||||||||||||||||||
Unrecognized Tax Benefits | ' | ||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance January 1 | $ | 4,425 | $ | 4,277 | $ | 4,919 | |||||||||||||||
Additions related to current year positions | 320 | 496 | 695 | ||||||||||||||||||
Additions related to prior year positions | 177 | 58 | 145 | ||||||||||||||||||
Reductions for tax positions of prior years (1) | (747 | ) | (320 | ) | (1,223 | ) | |||||||||||||||
Settlements | (603 | ) | (67 | ) | (259 | ) | |||||||||||||||
Lapse of statute of limitations | (69 | ) | (19 | ) | — | ||||||||||||||||
Balance December 31 | $ | 3,503 | $ | 4,425 | $ | 4,277 | |||||||||||||||
(1) | Amounts reflect the settlements with the IRS and CRA as discussed below. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Calculations of Earnings Per Share | ' | |||||||||||
The calculations of earnings per share are as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Basic Earnings per Common Share | ||||||||||||
Net income attributable to Merck & Co., Inc. | $ | 4,404 | $ | 6,168 | $ | 6,272 | ||||||
Less: Income allocated to participating securities | — | 3 | 15 | |||||||||
Net income allocated to common shareholders | $ | 4,404 | $ | 6,165 | $ | 6,257 | ||||||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||||||||
$ | 1.49 | $ | 2.03 | $ | 2.04 | |||||||
Earnings per Common Share Assuming Dilution | ||||||||||||
Net income attributable to Merck & Co., Inc. | $ | 4,404 | $ | 6,168 | $ | 6,272 | ||||||
Less: Income allocated to participating securities | — | 3 | 15 | |||||||||
Net income allocated to common shareholders | $ | 4,404 | $ | 6,165 | $ | 6,257 | ||||||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||||||||
Common shares issuable (1) | 33 | 35 | 23 | |||||||||
Average common shares outstanding assuming dilution | 2,996 | 3,076 | 3,094 | |||||||||
$ | 1.47 | $ | 2 | $ | 2.02 | |||||||
(1) | Issuable primarily under share-based compensation plans. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Changes in AOCI by component are as follows: | ||||||||||||||||||||
Derivatives | Investments | Employee | Cumulative | Accumulated Other | ||||||||||||||||
Benefit | Translation | Comprehensive | ||||||||||||||||||
Plans | Adjustment | Income (Loss) | ||||||||||||||||||
Balance January 1, 2011, net of taxes | $ | 41 | $ | 31 | $ | (2,043 | ) | $ | (1,245 | ) | $ | (3,216 | ) | |||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | (143 | ) | (10 | ) | (573 | ) | 435 | (291 | ) | |||||||||||
Tax | 56 | 5 | 187 | (1 | ) | 247 | ||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (87 | ) | (5 | ) | (386 | ) | 434 | (44 | ) | |||||||||||
Reclassification adjustments, pretax | 83 | (7 | ) | 151 | — | 227 | ||||||||||||||
Tax | (33 | ) | 2 | (68 | ) | — | (99 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 50 | (1) | (5 | ) | (2) | 83 | (3) | — | 128 | |||||||||||
Other comprehensive income (loss), net of taxes | (37 | ) | (10 | ) | (303 | ) | 434 | 84 | ||||||||||||
Balance December 31, 2011, net of taxes | 4 | 21 | (2,346 | ) | (811 | ) | (3,132 | ) | ||||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | (198 | ) | 74 | (1,852 | ) | (99 | ) | (2,075 | ) | |||||||||||
Tax | 77 | (10 | ) | 450 | (81 | ) | 436 | |||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (121 | ) | 64 | (1,402 | ) | (180 | ) | (1,639 | ) | |||||||||||
Reclassification adjustments, pretax | 33 | (13 | ) | 136 | — | 156 | ||||||||||||||
Tax | (13 | ) | 1 | (55 | ) | — | (67 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 20 | (1) | (12 | ) | (2) | 81 | (3) | — | 89 | |||||||||||
Other comprehensive income (loss), net of taxes | (101 | ) | 52 | (1,321 | ) | (180 | ) | (1,550 | ) | |||||||||||
Balance December 31, 2012, net of taxes | (97 | ) | 73 | (3,667 | ) | (4) | (991 | ) | (4,682 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | 335 | 33 | 3,917 | (383 | ) | 3,902 | ||||||||||||||
Tax | (132 | ) | (23 | ) | (1,365 | ) | (100 | ) | (1,620 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 203 | 10 | 2,552 | (483 | ) | 2,282 | ||||||||||||||
Reclassification adjustments, pretax | 42 | (39 | ) | 286 | — | 289 | ||||||||||||||
Tax | (16 | ) | 10 | (80 | ) | — | (86 | ) | ||||||||||||
Reclassification adjustments, net of taxes | 26 | (1) | (29 | ) | (2) | 206 | (3) | — | 203 | |||||||||||
Other comprehensive income (loss), net of taxes | 229 | (19 | ) | 2,758 | (483 | ) | 2,485 | |||||||||||||
Balance December 31, 2013, net of taxes | $ | 132 | $ | 54 | $ | (909 | ) | (4) | $ | (1,474 | ) | $ | (2,197 | ) | ||||||
-1 | Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales. | |||||||||||||||||||
-2 | Represents net realized gains on the sales of available-for-sale investments that were reclassified from AOCI to Other (income) expense, net. | |||||||||||||||||||
-3 | Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 13). | |||||||||||||||||||
(4) | Includes pension plan net loss of $(1.7) billion and $(4.1) billion at December 31, 2013 and 2012, respectively, and other postretirement benefit plan net loss of $(80) million and $(414) million at December 31, 2013 and in 2012, respectively, as well as pension plan prior service credit of $559 million and $449 million at December 31, 2013 and 2012, respectively, and other postretirement benefit plan prior service credit of $331 million and $354 million at December 31, 2013 and 2012. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Sales of Company's Products | ' | |||||||||||
Sales of the Company’s products were as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Primary Care and Women’s Health | ||||||||||||
Cardiovascular | ||||||||||||
Zetia | $ | 2,658 | $ | 2,567 | $ | 2,428 | ||||||
Vytorin | 1,643 | 1,747 | 1,882 | |||||||||
Diabetes and Obesity | ||||||||||||
Januvia | 4,004 | 4,086 | 3,324 | |||||||||
Janumet | 1,829 | 1,659 | 1,363 | |||||||||
Respiratory | ||||||||||||
Nasonex | 1,335 | 1,268 | 1,286 | |||||||||
Singulair | 1,196 | 3,853 | 5,479 | |||||||||
Dulera | 324 | 207 | 96 | |||||||||
Asmanex | 184 | 185 | 206 | |||||||||
Women’s Health and Endocrine | ||||||||||||
NuvaRing | 686 | 623 | 623 | |||||||||
Fosamax | 560 | 676 | 855 | |||||||||
Follistim AQ | 481 | 468 | 530 | |||||||||
Implanon | 403 | 348 | 294 | |||||||||
Cerazette | 208 | 271 | 268 | |||||||||
Other | ||||||||||||
Arcoxia | 484 | 453 | 431 | |||||||||
Avelox | 140 | 201 | 322 | |||||||||
Hospital and Specialty | ||||||||||||
Immunology | ||||||||||||
Remicade | 2,271 | 2,076 | 2,667 | |||||||||
Simponi | 500 | 331 | 264 | |||||||||
Infectious Disease | ||||||||||||
Isentress | 1,643 | 1,515 | 1,359 | |||||||||
Cancidas | 660 | 619 | 640 | |||||||||
PegIntron | 496 | 653 | 657 | |||||||||
Invanz | 488 | 445 | 406 | |||||||||
Victrelis | 428 | 502 | 140 | |||||||||
Noxafil | 309 | 258 | 230 | |||||||||
Oncology | ||||||||||||
Temodar | 708 | 917 | 935 | |||||||||
Emend | 507 | 489 | 419 | |||||||||
Other | ||||||||||||
Cosopt/Trusopt | 416 | 444 | 477 | |||||||||
Bridion | 288 | 261 | 201 | |||||||||
Integrilin | 186 | 211 | 230 | |||||||||
Diversified Brands | ||||||||||||
Cozaar/Hyzaar | 1,006 | 1,284 | 1,663 | |||||||||
Primaxin | 335 | 384 | 515 | |||||||||
Zocor | 301 | 383 | 456 | |||||||||
Propecia | 283 | 424 | 447 | |||||||||
Clarinex | 235 | 393 | 621 | |||||||||
Remeron | 206 | 232 | 241 | |||||||||
Claritin Rx | 204 | 244 | 314 | |||||||||
Proscar | 183 | 217 | 223 | |||||||||
Maxalt | 149 | 638 | 639 | |||||||||
Vaccines (1) | ||||||||||||
Gardasil | 1,831 | 1,631 | 1,209 | |||||||||
ProQuad/M-M-R II/Varivax | 1,306 | 1,273 | 1,202 | |||||||||
Zostavax | 758 | 651 | 332 | |||||||||
Pneumovax 23 | 653 | 580 | 498 | |||||||||
RotaTeq | 636 | 601 | 651 | |||||||||
Other pharmaceutical (2) | 4,316 | 4,333 | 4,266 | |||||||||
Total Pharmaceutical segment sales | 37,437 | 40,601 | 41,289 | |||||||||
Other segment sales (3) | 6,325 | 6,412 | 6,428 | |||||||||
Total segment sales | 43,762 | 47,013 | 47,717 | |||||||||
Other (4) | 271 | 254 | 330 | |||||||||
$ | 44,033 | $ | 47,267 | $ | 48,047 | |||||||
(1) | These amounts do not reflect sales of vaccines sold in most major European markets through the Company’s joint venture, Sanofi Pasteur MSD, the results of which are reflected in Equity income from affiliates. These amounts do, however, reflect supply sales to Sanofi Pasteur MSD. | |||||||||||
(2) | Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. | |||||||||||
(3) | Represents the non-reportable segments of Animal Health, Consumer Care and Alliances. The Alliances segment includes revenue from the Company’s relationship with AZLP. | |||||||||||
(4) | Other revenues are primarily comprised of miscellaneous corporate revenues, third-party manufacturing sales, sales related to divested products or businesses and other supply sales not included in segment results. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales (see Note 3). In addition, other revenues in 2013 reflect $50 million of revenue for the out-license of a pipeline compound. | |||||||||||
Consolidated Revenues by Geographic Area | ' | |||||||||||
Consolidated revenues by geographic area where derived are as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
United States | $ | 18,246 | $ | 20,392 | $ | 20,495 | ||||||
Europe, Middle East and Africa | 13,140 | 12,990 | 13,782 | |||||||||
Japan | 4,044 | 5,102 | 4,835 | |||||||||
Asia Pacific | 3,845 | 3,775 | 3,496 | |||||||||
Latin America | 3,203 | 3,389 | 3,472 | |||||||||
Other | 1,555 | 1,619 | 1,967 | |||||||||
$ | 44,033 | $ | 47,267 | $ | 48,047 | |||||||
Reconciliation of Segment Profits to Income Before Taxes | ' | |||||||||||
A reconciliation of total segment profits to consolidated Income before taxes is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
Segment profits: | ||||||||||||
Pharmaceutical segment | $ | 22,983 | $ | 25,852 | $ | 25,617 | ||||||
Other segments | 3,094 | 3,163 | 2,995 | |||||||||
Total segment profits | 26,077 | 29,015 | 28,612 | |||||||||
Other profits (losses) | 19 | 26 | (11 | ) | ||||||||
Unallocated: | ||||||||||||
Interest income | 264 | 232 | 145 | |||||||||
Interest expense | (801 | ) | (714 | ) | (695 | ) | ||||||
Equity income from affiliates | (159 | ) | 102 | 41 | ||||||||
Depreciation and amortization | (2,250 | ) | (2,059 | ) | (2,412 | ) | ||||||
Research and development | (6,381 | ) | (7,126 | ) | (7,251 | ) | ||||||
Amortization of purchase accounting adjustments | (4,690 | ) | (4,872 | ) | (5,000 | ) | ||||||
Restructuring costs | (1,709 | ) | (664 | ) | (1,306 | ) | ||||||
Net charge related to settlement of ENHANCE Litigation | — | (493 | ) | — | ||||||||
Arbitration settlement charge | — | — | (500 | ) | ||||||||
Other unallocated, net | (4,825 | ) | (4,708 | ) | (4,289 | ) | ||||||
$ | 5,545 | $ | 8,739 | $ | 7,334 | |||||||
Equity Income from Affiliates and Depreciation and Amortization Included in Segment Profits | ' | |||||||||||
Equity income from affiliates and depreciation and amortization included in segment profits is as follows: | ||||||||||||
Pharmaceutical | All Other | Total | ||||||||||
Year Ended December 31, 2013 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 88 | $ | 475 | $ | 563 | ||||||
Depreciation and amortization | (27 | ) | (22 | ) | (49 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 36 | $ | 504 | $ | 540 | ||||||
Depreciation and amortization | (25 | ) | (20 | ) | (45 | ) | ||||||
Year Ended December 31, 2011 | ||||||||||||
Included in segment profits: | ||||||||||||
Equity income from affiliates | $ | 59 | $ | 510 | $ | 569 | ||||||
Depreciation and amortization | (51 | ) | (20 | ) | (71 | ) | ||||||
Property, Plant and Equipment, Net by Geographic Area | ' | |||||||||||
Property, plant and equipment, net by geographic area where located is as follows: | ||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||
United States | $ | 10,076 | $ | 10,687 | $ | 10,826 | ||||||
Europe, Middle East and Africa | 3,346 | 3,688 | 3,780 | |||||||||
Asia Pacific | 1,001 | 1,059 | 1,064 | |||||||||
Latin America | 242 | 250 | 234 | |||||||||
Japan | 211 | 243 | 279 | |||||||||
Other | 97 | 103 | 114 | |||||||||
$ | 14,973 | $ | 16,030 | $ | 16,297 | |||||||
Nature_of_Operations_Nature_of
Nature of Operations Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of operating segments | 4 |
Number of reportable segments | 1 |
Summary_of_Accounting_Policies2
Summary of Accounting Policies - Textual (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Accrual for chargebacks reflected as direct reduction to Accounts receivable | $87,000,000 | $120,000,000 | ' |
Accrual for rebates included in Accrued and other current liabilities | 1,600,000,000 | 1,800,000,000 | ' |
Depreciation expense | 2,200,000,000 | 2,000,000,000 | 2,400,000,000 |
Advertising expenses | 2,500,000,000 | 2,800,000,000 | 3,100,000,000 |
Capitalized Software [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Unamortized capitalized software costs | $529,000,000 | $428,000,000 | ' |
Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '3 years | ' | ' |
Minimum [Member] | Capitalized Software [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '6 years | ' | ' |
Minimum [Member] | Other capitalized software [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '40 years | ' | ' |
Maximum [Member] | Capitalized Software [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' |
Maximum [Member] | Other capitalized software [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of intangible assets | '5 years | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of property, plant and equipment | '3 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of property, plant and equipment | '15 years | ' | ' |
Building [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of property, plant and equipment | '10 years | ' | ' |
Building [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life of property, plant and equipment | '50 years | ' | ' |
Restructuring_Charges_Related_
Restructuring - Charges Related to Restructuring Program Activities by Type of Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | $16,954 | $16,446 | $16,871 |
Marketing and administrative | 11,911 | 12,776 | 13,733 |
Research and development | 7,503 | 8,168 | 8,467 |
Restructuring costs | 1,709 | 664 | 1,306 |
Expenses | 2,401 | 999 | 1,891 |
2013 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 193 | ' | ' |
Marketing and administrative | 75 | ' | ' |
Research and development | 75 | ' | ' |
Restructuring costs | 898 | ' | ' |
Expenses | 1,241 | ' | ' |
Merger Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 249 | 162 | 299 |
Marketing and administrative | 66 | 81 | 119 |
Research and development | 26 | 57 | 134 |
Restructuring costs | 765 | 651 | 1,294 |
Expenses | 1,106 | 951 | 1,846 |
2008 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 4 | 26 | 29 |
Marketing and administrative | 4 | 9 | ' |
Research and development | ' | ' | 4 |
Restructuring costs | 46 | 13 | 12 |
Expenses | 54 | 48 | 45 |
Separation Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expenses | 1,381 | 489 | 1,111 |
Separation Costs [Member] | 2013 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 0 | ' | ' |
Marketing and administrative | 0 | ' | ' |
Research and development | 0 | ' | ' |
Restructuring costs | 866 | ' | ' |
Expenses | 866 | ' | ' |
Separation Costs [Member] | Merger Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 0 | 0 | 0 |
Marketing and administrative | 0 | 0 | 0 |
Research and development | 0 | 0 | 0 |
Restructuring costs | 481 | 497 | 1,117 |
Expenses | 481 | 497 | 1,117 |
Separation Costs [Member] | 2008 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 0 | 0 | 0 |
Marketing and administrative | 0 | 0 | ' |
Research and development | ' | ' | 0 |
Restructuring costs | 34 | -8 | -6 |
Expenses | 34 | -8 | -6 |
Accelerated Depreciation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expenses | 577 | 235 | 569 |
Accelerated Depreciation [Member] | 2013 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 186 | ' | ' |
Marketing and administrative | 72 | ' | ' |
Research and development | 76 | ' | ' |
Restructuring costs | 0 | ' | ' |
Expenses | 334 | ' | ' |
Accelerated Depreciation [Member] | Merger Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 151 | 92 | 282 |
Marketing and administrative | 63 | 75 | 108 |
Research and development | 27 | 53 | 151 |
Restructuring costs | 0 | 0 | 0 |
Expenses | 241 | 220 | 541 |
Accelerated Depreciation [Member] | 2008 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | -2 | 7 | 24 |
Marketing and administrative | 4 | 8 | ' |
Research and development | ' | ' | 4 |
Restructuring costs | 0 | 0 | 0 |
Expenses | 2 | 15 | 28 |
Other [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expenses | 443 | 275 | 211 |
Other [Member] | 2013 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 7 | ' | ' |
Marketing and administrative | 3 | ' | ' |
Research and development | -1 | ' | ' |
Restructuring costs | 32 | ' | ' |
Expenses | 41 | ' | ' |
Other [Member] | Merger Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 98 | 70 | 17 |
Marketing and administrative | 3 | 6 | 11 |
Research and development | -1 | 4 | -17 |
Restructuring costs | 284 | 154 | 177 |
Expenses | 384 | 234 | 188 |
Other [Member] | 2008 Restructuring Program [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Materials and production | 6 | 19 | 5 |
Marketing and administrative | 0 | 1 | ' |
Research and development | ' | ' | 0 |
Restructuring costs | 12 | 21 | 18 |
Expenses | $18 | $41 | $23 |
Restructuring_Charges_and_Spen
Restructuring - Charges and Spending Relating to Restructuring Activities by Program (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Expenses | $2,401 | $999 | $1,891 | |
2013 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | ' | ' | |
Expenses | 1,241 | ' | ' | |
(Payments) receipts, net | -112 | ' | ' | |
Non-cash activity | -361 | ' | ' | |
Restructuring reserve, ending balance | 768 | [1] | ' | ' |
Merger Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 718 | 1,195 | ' | |
Expenses | 1,106 | 951 | 1,846 | |
(Payments) receipts, net | -775 | -1,112 | ' | |
Non-cash activity | -312 | -316 | ' | |
Restructuring reserve, ending balance | 737 | [1] | 718 | 1,195 |
2008 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 77 | 126 | ' | |
Expenses | 54 | 48 | 45 | |
(Payments) receipts, net | -60 | -62 | ' | |
Non-cash activity | -71 | -35 | ' | |
Restructuring reserve, ending balance | 0 | 77 | 126 | |
Separation Costs [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Expenses | 1,381 | 489 | 1,111 | |
Separation Costs [Member] | 2013 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | ' | ' | |
Expenses | 866 | ' | ' | |
(Payments) receipts, net | -121 | ' | ' | |
Non-cash activity | 0 | ' | ' | |
Restructuring reserve, ending balance | 745 | [1] | ' | ' |
Separation Costs [Member] | Merger Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 699 | 1,144 | ' | |
Expenses | 481 | 497 | 1,117 | |
(Payments) receipts, net | -517 | -942 | ' | |
Non-cash activity | 62 | 0 | ' | |
Restructuring reserve, ending balance | 725 | [1] | 699 | 1,144 |
Separation Costs [Member] | 2008 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 77 | 126 | ' | |
Expenses | 34 | -8 | -6 | |
(Payments) receipts, net | -49 | -41 | ' | |
Non-cash activity | -62 | 0 | ' | |
Restructuring reserve, ending balance | 0 | 77 | 126 | |
Accelerated Depreciation [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Expenses | 577 | 235 | 569 | |
Accelerated Depreciation [Member] | 2013 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | ' | ' | |
Expenses | 334 | ' | ' | |
(Payments) receipts, net | 0 | ' | ' | |
Non-cash activity | -334 | ' | ' | |
Restructuring reserve, ending balance | 0 | [1] | ' | ' |
Accelerated Depreciation [Member] | Merger Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | 0 | ' | |
Expenses | 241 | 220 | 541 | |
(Payments) receipts, net | 0 | 0 | ' | |
Non-cash activity | -241 | -220 | ' | |
Restructuring reserve, ending balance | 0 | [1] | 0 | 0 |
Accelerated Depreciation [Member] | 2008 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | 0 | ' | |
Expenses | 2 | 15 | 28 | |
(Payments) receipts, net | 0 | 0 | ' | |
Non-cash activity | -2 | -15 | ' | |
Restructuring reserve, ending balance | 0 | 0 | 0 | |
Other [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Expenses | 443 | 275 | 211 | |
Other [Member] | 2013 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | ' | ' | |
Expenses | 41 | ' | ' | |
(Payments) receipts, net | 9 | ' | ' | |
Non-cash activity | -27 | ' | ' | |
Restructuring reserve, ending balance | 23 | [1] | ' | ' |
Other [Member] | Merger Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 19 | 51 | ' | |
Expenses | 384 | 234 | 188 | |
(Payments) receipts, net | -258 | -170 | ' | |
Non-cash activity | -133 | -96 | ' | |
Restructuring reserve, ending balance | 12 | [1] | 19 | 51 |
Other [Member] | 2008 Restructuring Program [Member] | ' | ' | ' | |
Restructuring Reserve [Roll Forward] | ' | ' | ' | |
Restructuring reserve, beginning balance | 0 | 0 | ' | |
Expenses | 18 | 41 | 23 | |
(Payments) receipts, net | -11 | -21 | ' | |
Non-cash activity | -7 | -20 | ' | |
Restructuring reserve, ending balance | $0 | $0 | $0 | |
[1] | The cash outlays associated with the 2013 Restructuring Program are expected to be substantially completed by the end of 2015. The cash outlays associated with the Merger Restructuring Program were substantially completed by the end of 2013 with the exception of certain actions, principally manufacturing-related, which are expected to be substantially completed by 2016. |
Restructuring_Textual_Detail
Restructuring - Textual (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
2013 Restructuring Program [Member] | 2013 Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | 2008 Restructuring Program [Member] | 2008 Restructuring Program [Member] | 2008 Restructuring Program [Member] | 2008 Restructuring Program [Member] | Asset abandonment, shut-down and other related costs [Member] | Asset abandonment, shut-down and other related costs [Member] | Asset abandonment, shut-down and other related costs [Member] | Facility Closing [Member] | Facility Closing [Member] | Facility Closing [Member] | Legacy Schering-Plough Program [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | Due 2023 [Member] | Due Over Five Years [Member] | Inventory [Member] | Property, Plant and Equipment, Type [Domain] | Other Assets [Member] | ||||
position | position | position | position | position | position | position | position | position | 2013 Restructuring Program [Member] | Merger Restructuring Program [Member] | 2013 Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | API Manufacturing Business [Member] | |||||||||||
employee | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | Merger Restructuring Program [Member] | ||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of positions expected to be eliminated | ' | ' | ' | 8,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 960 | ' | ' | ' | ' | ' | ' |
Expenses | $2,401,000,000 | $999,000,000 | $1,891,000,000 | ' | $1,241,000,000 | $1,106,000,000 | $951,000,000 | $1,846,000,000 | ' | $54,000,000 | $48,000,000 | $45,000,000 | $259,000,000 | $155,000,000 | $72,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65,000,000 | ' | ' | ' | ' | ' |
Noncash or part noncash divestiture, amount of consideration received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 198,000,000 | ' | 138,000,000 | 60,000,000 | ' | ' | ' |
Financing receivable, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 261,000,000 | 67,500,000 | ' | ' | ' |
Proceeds from divestiture of businesses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 533,000,000 | 172,000,000 | 705,000,000 | ' | ' | ' | ' | ' |
Assets divested - noncash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 420,000,000 | 220,000,000 | 23,000,000 |
Disposal Group, Including Discontinued Operation, Consideration, Total Cash Consideration To Be Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' |
Consideration Transfered in Business Divestiture - Goodwill Reduction | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' |
Consideration Transfered in Business Divestiture - Other Intangible Assets Reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' |
Business divestiture - Liability Assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | 90,000,000 | ' | ' | ' | ' | ' |
Expected cumulative restructuring costs, pretax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | 7,400,000,000 | 3,000,000,000 | 7,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative restructuring costs incurred to date since program inception | ' | ' | ' | ' | ' | 7,200,000,000 | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Positions eliminated since inception of program | ' | ' | ' | ' | ' | 26,880 | ' | ' | 6,460 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining position eliminations expected | ' | ' | ' | ' | ' | 6,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage estimate of cumulative pretax costs that will result in cash outlays (primarily from employee separation expense) | ' | ' | ' | ' | 66.67% | 66.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage estimate of cumulative pretax costs that will be non-cash (primarily from accelerated depreciation of facilities) | ' | ' | ' | ' | 33.33% | 33.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions eliminated | ' | ' | ' | ' | 1,540 | 4,475 | 3,975 | 6,880 | ' | 55 | 155 | 450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pretax gains (losses) resulting from sales of facilities | ' | ' | 127,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -64,000,000 | 28,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated depreciation for Legacy Schering-Plough Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Divestitures_Rese1
Acquisitions, Divestitures, Research Collaborations and License Agreements - Textual (Detail) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Oct. 06, 2009 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Apr. 30, 2012 | 31-May-11 |
Subsidiary | USD ($) | USD ($) | USD ($) | Merck & Co., Inc [Member] | Pfizer Inc [Member] | Pfizer Inc [Member] | Supera [Member] | Supera [Member] | AstraZeneca [Member] | AiCuris [Member] | AiCuris [Member] | Endocyte [Member] | Inspire Pharmaceuticals [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | ||||||||
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from collaborators | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50 | ' | ' | ' | ' |
Expenses for upfront and milestone payments made to collaborative partner | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | 140 | 110 | 120 | ' |
Revenue and cost allocation percentage | ' | ' | ' | ' | ' | 60.00% | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' |
Length of time to give notice to terminate the agreement | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | '90 days | ' |
Controlling interest ownership of the joint venture, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' |
Noncontrolling interest ownership of the joint venture, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' |
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89 | ' | ' | ' | ' | ' |
Business acquisition, assets acquired and liabilities assumed, IPR&D | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 12,301 | 12,134 | 12,155 | ' | ' | ' | ' | 103 | ' | ' | ' | ' | ' |
Business acquisition, assets acquired and liabilities assumed, deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64 | ' | ' | ' | ' | ' |
Increase in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | 112 | ' | ' | ' | ' | ' |
Increase in other paid-in-capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116 | ' | ' | ' | ' | ' |
In-process research and development impairment charges | ' | ' | 279 | 200 | 587 | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' |
Potential future milestone payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332.5 | 880 | ' |
Amount of cash paid per share for acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 |
Purchase price for acquisition | ' | ' | 246 | 0 | 373 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 420 |
Number of subsidiaries sold | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of time following closing of transaction committed to purchase certain development and manufacturing services at fair value | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of manufacturing facilities and related assets | ' | ' | ' | ' | 127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended marketing rights for both products (Remicade and Simponi) | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Arbitration settlement payment | ' | ' | ' | ' | $500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value of Derivatives Segregated Between Those Derivatives That are Designated as Hedging Instruments and Those That are Not Designated as Hedging Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | $1,090,000,000 | $731,000,000 |
Fair value of derivative, Liability | 184,000,000 | 229,000,000 |
U.S. Dollar Notional | 29,909,000,000 | 26,556,000,000 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 1,021,000,000 | 668,000,000 |
Fair value of derivative, Liability | 44,000,000 | 13,000,000 |
U.S. Dollar Notional | 16,312,000,000 | 13,573,000,000 |
Derivatives Not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 69,000,000 | 63,000,000 |
Fair value of derivative, Liability | 140,000,000 | 216,000,000 |
U.S. Dollar Notional | 13,597,000,000 | 12,983,000,000 |
Interest Rate Swap [Member] | Derivatives Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 13,000,000 | 0 |
U.S. Dollar Notional | 1,550,000,000 | 0 |
Interest Rate Swap [Member] | Derivatives Designated as Hedging Instruments [Member] | Deferred income taxes and noncurrent liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Liability | 25,000,000 | 0 |
U.S. Dollar Notional | 2,000,000,000 | 0 |
Foreign exchange contract [Member] | Derivatives Designated as Hedging Instruments [Member] | Deferred income taxes and other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 493,000,000 | 281,000,000 |
U.S. Dollar Notional | 4,427,000,000 | 6,646,000,000 |
Foreign exchange contract [Member] | Derivatives Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 515,000,000 | 387,000,000 |
U.S. Dollar Notional | 6,676,000,000 | 5,989,000,000 |
Foreign exchange contract [Member] | Derivatives Designated as Hedging Instruments [Member] | Accrued and other current liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Liability | 19,000,000 | 13,000,000 |
U.S. Dollar Notional | 1,659,000,000 | 938,000,000 |
Foreign exchange contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Deferred income taxes and other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 69,000,000 | 55,000,000 |
Fair value of derivative, Liability | ' | ' |
U.S. Dollar Notional | 5,705,000,000 | 4,548,000,000 |
Foreign exchange contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Asset | 0 | 8,000,000 |
U.S. Dollar Notional | 0 | 232,000,000 |
Foreign exchange contract [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Accrued and other current liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative, Liability | 140,000,000 | 216,000,000 |
U.S. Dollar Notional | $7,892,000,000 | $8,203,000,000 |
Financial_Instruments_Informat
Financial Instruments - Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Derivative assets | $1,090 | $731 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, Asset | -147 | -195 |
Cash collateral (received) posted, Asset | -652 | -305 |
Derivative, Collateral, Right to Reclaim Cash | ' | ' |
Net amounts, Asset | 291 | 231 |
Derivative liabilities | 184 | 229 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, Liability | -147 | -195 |
Net amounts, Liability | $37 | $34 |
Financial_Instruments_Location
Financial Instruments - Location and Pretax Gain or Loss Amounts for Derivatives (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivatives not designated in a hedging relationship [Member] | Foreign exchange contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (1) | $183 | [1] | $382 | [1] | ($113) | [1] |
Amount of loss recognized in Sales | 8 | 30 | 0 | |||
Derivatives designated in fair value hedging relationships [Member] | Interest rate swap contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of loss (gain) recognized in Other (income) expense, net on derivatives (1) | 12 | [2] | 0 | [2] | -196 | [2] |
Amount of (gain) loss recognized in Other (income) expense, net on hedged item (1) | -14 | [2] | 0 | [2] | 196 | [2] |
Derivatives designated in foreign currency cash flow hedging relationships [Member] | Foreign exchange contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of loss reclassified from AOCI to Sales | 45 | 50 | 85 | |||
Amount of (gain) loss recognized in OCI on derivatives | -306 | 204 | 143 | |||
Derivatives designated in foreign currency net investment hedging relationships [Member] | Foreign exchange contract [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Amount of (gain) loss recognized in OCI on derivatives | -363 | -208 | 122 | |||
Amount of gain recognized in Other (income) expense, net on derivatives (2) | ($10) | [3] | ($20) | [3] | ($10) | [3] |
[1] | These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. | |||||
[2] | There was $2 million of ineffectiveness on the hedge during 2013. | |||||
[3] | There was no ineffectiveness on the hedge. Represents the amount excluded from hedge effectiveness testing. |
Financial_Instruments_Informat1
Financial Instruments - Information on Available-for-sale Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $11,868 | $10,202 |
Amortized Cost | 11,787 | 10,115 |
Gross Unrealized Gains | 110 | 93 |
Gross Unrealized Losses | -29 | -6 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 1,206 | 2,150 |
Amortized Cost | 1,206 | 2,150 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Corporate notes and bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 7,054 | 5,063 |
Amortized Cost | 7,037 | 5,013 |
Gross Unrealized Gains | 32 | 52 |
Gross Unrealized Losses | -15 | -2 |
Asset-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 1,300 | 837 |
Amortized Cost | 1,303 | 835 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | -4 | -1 |
U.S. government and agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 1,236 | 1,206 |
Amortized Cost | 1,239 | 1,204 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | -4 | ' |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 476 | 435 |
Amortized Cost | 479 | 436 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | -5 | -3 |
Foreign government bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 125 | 108 |
Amortized Cost | 126 | 107 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | -1 | ' |
Equity securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 471 | 403 |
Amortized Cost | 397 | 370 |
Gross Unrealized Gains | 74 | 33 |
Gross Unrealized Losses | ' | ' |
Financial_Instruments_Financia
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Assets | ' | ' | ||
Fair Value | $11,868 | $10,202 | ||
Derivative assets | 1,090 | 731 | ||
Liabilities | ' | ' | ||
Derivative liabilities | 184 | 229 | ||
Commercial paper [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,206 | 2,150 | ||
Corporate notes and bonds [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 7,054 | 5,063 | ||
U.S. government and agency securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,236 | 1,206 | ||
Asset-backed securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,300 | 837 | ||
Liabilities | ' | ' | ||
Primary weighted-average lives of investment collateral | '5 years | ' | ||
Mortgage-backed securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 476 | 435 | ||
Foreign government bonds [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 125 | 108 | ||
Equity securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 471 | 403 | ||
Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets | ' | ' | ||
Investments | 11,635 | 9,995 | ||
Securities held for employee compensation | 233 | 207 | ||
Purchased currency options | 868 | [1] | 546 | [1] |
Derivative assets | 1,090 | [1] | 731 | [1] |
Total assets | 12,958 | 10,933 | ||
Liabilities | ' | ' | ||
Total liabilities | 184 | 229 | ||
Fair Value, Measurements, Recurring [Member] | Foreign exchange contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | 209 | [1] | 185 | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | 134 | [1] | 216 | [1] |
Fair Value, Measurements, Recurring [Member] | Interest rate swap contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | 13 | [1] | 0 | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | 25 | [1] | 0 | [1] |
Fair Value, Measurements, Recurring [Member] | Written currency options [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative liabilities | 25 | [1] | 13 | [1] |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,206 | 2,150 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Investments | 238 | 196 | ||
Securities held for employee compensation | 186 | 169 | ||
Purchased currency options | ' | [1] | ' | [1] |
Derivative assets | ' | [1] | ' | [1] |
Total assets | 424 | 365 | ||
Liabilities | ' | ' | ||
Total liabilities | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Foreign exchange contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | ' | [1] | ' | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Interest rate swap contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | ' | [1] | ' | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Written currency options [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Investments | 11,397 | 9,799 | ||
Securities held for employee compensation | 47 | 38 | ||
Purchased currency options | 868 | [1] | 546 | [1] |
Derivative assets | 1,090 | [1] | 731 | [1] |
Total assets | 12,534 | 10,568 | ||
Liabilities | ' | ' | ||
Total liabilities | 184 | 229 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | 209 | [1] | 185 | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | 134 | [1] | 216 | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest rate swap contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | 13 | [1] | 0 | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | 25 | [1] | 0 | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Written currency options [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative liabilities | 25 | [1] | 13 | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,206 | 2,150 | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Investments | ' | ' | ||
Securities held for employee compensation | ' | ' | ||
Purchased currency options | ' | [1] | ' | [1] |
Derivative assets | ' | [1] | ' | [1] |
Total assets | ' | ' | ||
Liabilities | ' | ' | ||
Total liabilities | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign exchange contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | ' | [1] | ' | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest rate swap contract [Member] | ' | ' | ||
Assets | ' | ' | ||
Derivative assets | ' | [1] | ' | [1] |
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Written currency options [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative liabilities | ' | [1] | ' | [1] |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Corporate notes and bonds [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 7,054 | 5,063 | ||
Fair Value, Measurements, Recurring [Member] | Corporate notes and bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Corporate notes and bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 7,054 | 5,063 | ||
Fair Value, Measurements, Recurring [Member] | Corporate notes and bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | U.S. government and agency securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,236 | 1,206 | ||
Fair Value, Measurements, Recurring [Member] | U.S. government and agency securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | U.S. government and agency securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,236 | 1,206 | ||
Fair Value, Measurements, Recurring [Member] | U.S. government and agency securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,300 | [2] | 837 | [2] |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | [2] | ' | [2] |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 1,300 | [2] | 837 | [2] |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | [2] | ' | [2] |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 476 | [2] | 435 | [2] |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | [2] | ' | [2] |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 476 | [2] | 435 | [2] |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | [2] | ' | [2] |
Fair Value, Measurements, Recurring [Member] | Foreign government bonds [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 125 | 108 | ||
Fair Value, Measurements, Recurring [Member] | Foreign government bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Foreign government bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 125 | 108 | ||
Fair Value, Measurements, Recurring [Member] | Foreign government bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 238 | 196 | ||
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | 238 | 196 | ||
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets | ' | ' | ||
Fair Value | ' | ' | ||
[1] | The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant. | |||
[2] | Primarily all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AAA and Moody’s Investors Service rating of Aaa), secured primarily by credit card, auto loan, and home equity receivables, with weighted-average lives of primarily 5 years or less. Mortgage-backed securities represent AAA-rated securities issued or unconditionally guaranteed as to payment of principal and interest by U.S. government agencies. |
Financial_Instruments_Textual_
Financial Instruments - Textual (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fund | Interest_Rate_Swap | Greece, Italy, Spain and Portugal [Member] | Greece, Italy, Spain and Portugal [Member] | Greece [Member] | Italy [Member] | Italy [Member] | Spain [Member] | Portugal [Member] | Spanish government's debt stabilization/stimulus plan [Member] | 5.00% Notes Due 2019 [Member] | 0.70% notes due 2016 [Member] | Due 2018 [Member] | 6.00% Notes Due 2017 [Member] | 0.70% notes due 2016 [Member] | 0.70% notes due 2016 [Member] | 1.30% notes due 2018 [Member] | 1.30% notes due 2018 [Member] | 5.00% Notes Due 2019 [Member] | 6.00% Notes Due 2017 [Member] | $150 Million Notional Amount [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | $300 Million Notional Amount [Member] | $250 Million Notional Amounts [Member] | $200 Million Notional Amounts [Member] | $200 Million Notional Amounts [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Interest_Rate_Swap | Hospital and public sector [Member] | Interest_Rate_Swap | Interest_Rate_Swap | Interest_Rate_Swap | Interest_Rate_Swap | 5.00% Notes Due 2019 [Member] | 1.30% notes due 2018 [Member] | 0.70% notes due 2016 [Member] | $150 Million Notional Amount [Member] | $200 Million Notional Amounts [Member] | $200 Million Notional Amounts [Member] | $250 Million Notional Amounts [Member] | $300 Million Notional Amount [Member] | 6.00% Notes Due 2017 [Member] | 6.00% Notes Due 2017 [Member] | 5.00% Notes Due 2019 [Member] | 6.00% Notes Due 2017 [Member] | ||||||||||||||||||||
Interest_Rate_Swap | 5.00% Notes Due 2019 [Member] | 5.00% Notes Due 2019 [Member] | 6.00% Notes Due 2017 [Member] | 6.00% Notes Due 2017 [Member] | 6.00% Notes Due 2017 [Member] | Interest_Rate_Swap | Interest_Rate_Swap | Interest_Rate_Swap | Interest_Rate_Swap | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum planning cycle of third-party sales hedges | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pretax gains (losses) from euro-denominated notes included in cumulative translation adjustments | ($84,000,000) | ($31,000,000) | $6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate derivatives held | 15 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 4 | 4 | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | 2 | 1 | ' | ' | ' |
Derivative, notional amount | 29,909,000,000 | 26,556,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 250,000,000 | 150,000,000 | 200,000,000 | 200,000,000 | 250,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Fixed-rate notes, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | 0.70% | 1.30% | 1.30% | 5.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received on termination of interest rate swaps | ' | ' | 288,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest received on termination of interest rate swaps | ' | ' | 43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred basis adjustment of debt associated with terminated interest rate swap contracts | ' | ' | 245,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ineffectiveness on the hedged item | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre tax net unrealized loss on derivatives maturing within next 12 months estimated to be reclassified from AOCI to sales | -66,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities included in Short-term investments | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities maturing after one year through five years | 8,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 15,621,000,000 | 13,451,000,000 | 13,531,000,000 | 10,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,600,000,000 | ' | ' |
Cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,700,000,000 | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 | 49,000,000 |
Fair value of loans payable and long-term debt, including current portion | 25,500,000,000 | 22,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of Loans payable and long-term debt, including current portion | 25,100,000,000 | 20,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents invested in highly rated money market funds | 33.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of highly rated money market funds | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum average period of maturities of contracts in years | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent accounts receivable | 275,000,000 | 473,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable in Greece, Italy, Spain and Portugal | ' | ' | ' | ' | 900,000,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total hospital and public sector accounts receivable in Greece, Italy, Spain and Portugal in the aggregate that relate to specified country | ' | ' | ' | ' | ' | ' | 9.00% | ' | 41.00% | 40.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total accounts receivable outstanding in excess of one year | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable outstanding for more than one year that relate to Greece, Italy, Spain and Portugal | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables factored during period | ' | ' | ' | ' | ' | ' | ' | 230,000,000 | ' | 210,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable represented by customers with largest balances | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral received from counterparties | $652,000,000 | $305,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $1,738 | $1,924 |
Raw materials and work in process | 5,894 | 5,921 |
Supplies | 225 | 244 |
Total (approximates current cost) | 7,857 | 8,089 |
Increase to LIFO costs | 73 | 52 |
Total current and noncurrent inventories | 7,930 | 8,141 |
Recognized as: | ' | ' |
Inventories | 6,226 | 6,535 |
Other assets | $1,704 | $1,606 |
Inventories_Textual_Detail
Inventories - Textual (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
LIFO Inventory Amount | $2,300,000,000 | $2,100,000,000 |
Inventories not expected to be sold within one year included in Other assets | 1,500,000,000 | 1,400,000,000 |
Inventories produced in preparation for product launches included in Other Assets | $177,000,000 | $196,000,000 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles - Goodwill Activity by Segment (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Goodwill [Roll Forward] | ' | ' | ||
Goodwill, Beginning Balance | $12,134 | $12,155 | ||
Acquisitions | 291 | ' | ||
Divestitures | -45 | ' | ||
Other | -79 | [1] | -21 | [1] |
Goodwill, Ending Balance | 12,301 | 12,134 | ||
Pharmaceutical [Member] | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ||
Goodwill, Beginning Balance | 10,086 | 10,107 | ||
Acquisitions | 103 | ' | ||
Divestitures | -45 | ' | ||
Other | -79 | [1] | -21 | [1] |
Goodwill, Ending Balance | 10,065 | 10,086 | ||
All Other [Member] | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ||
Goodwill, Beginning Balance | 2,048 | 2,048 | ||
Acquisitions | 188 | ' | ||
Divestitures | 0 | ' | ||
Other | 0 | [1] | 0 | [1] |
Goodwill, Ending Balance | $2,236 | $2,048 | ||
[1] | Other includes cumulative translation adjustments on goodwill balances and certain other adjustments. |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles - Other Intangibles (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangible Assets Excluding Goodwill [Line Items] | ' | ' |
Gross carrying amount | $46,137 | $46,742 |
Accumulated Amortization | 22,336 | 17,659 |
Net | 23,801 | 29,083 |
Products and product rights [Member] | ' | ' |
Intangible Assets Excluding Goodwill [Line Items] | ' | ' |
Gross carrying amount | 41,691 | 41,932 |
Accumulated Amortization | 21,216 | 16,678 |
Net | 20,475 | 25,254 |
In-process research and development [Member] | ' | ' |
Intangible Assets Excluding Goodwill [Line Items] | ' | ' |
Gross carrying amount | 1,856 | 2,393 |
Net | 1,856 | 2,393 |
Tradenames [Member] | ' | ' |
Intangible Assets Excluding Goodwill [Line Items] | ' | ' |
Gross carrying amount | 1,632 | 1,521 |
Accumulated Amortization | 310 | 236 |
Net | 1,322 | 1,285 |
Other [Member] | ' | ' |
Intangible Assets Excluding Goodwill [Line Items] | ' | ' |
Gross carrying amount | 958 | 896 |
Accumulated Amortization | 810 | 745 |
Net | $148 | $151 |
Goodwill_and_Other_Intangibles4
Goodwill and Other Intangibles - Textual (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | |
Zetia [Member] | Vytorin [Member] | Nasonex [Member] | Claritin Rx [Member] | NuvaRing [Member] | Products Marketed for Treatment of Chronic Hepatitis C Virus [Member] | Saphris/Sycrest [Member] | Rebetol [Member] | Preladenant [Member] | Supera [Member] | Physicians Interactive [Member] | Health Management Resources Corporation [Member] | Health Management Resources Corporation [Member] | ||||
Physicians Interactive [Member] | ||||||||||||||||
Intangible Assets Excluding Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | 24.00% | ' | ' |
Business combination, consideration transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $97,000,000 | $87,000,000 | ' |
Acquisitions | 291,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 |
Other Intangibles, Net | 23,801,000,000 | 29,083,000,000 | ' | 4,700,000,000 | 2,600,000,000 | 1,300,000,000 | 1,500,000,000 | 867,000,000 | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Intangible asset impairment charge related to marketed product | 486,000,000 | ' | 118,000,000 | ' | ' | ' | ' | ' | ' | 330,000,000 | 156,000,000 | ' | ' | ' | ' | ' |
IPR&D reclassified to products and product rights upon receipt of marketing approval | 346,000,000 | 78,000,000 | 666,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In-process research and development impairment charges | 279,000,000 | 200,000,000 | 587,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 181,000,000 | 15,000,000 | ' | ' | ' |
Amortization expense for intangible assets | 4,800,000,000 | 5,000,000,000 | 5,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Amortization Expense, 2014 | 4,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Amortization Expense, 2015 | 4,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Amortization Expense, 2016 | 3,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Amortization Expense, 2017 | 3,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Amortization Expense, 2018 | $1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint_Ventures_and_Other_Equit2
Joint Ventures and Other Equity Method Affiliates - Equity Income from Affiliates (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Equity Income from Affiliates [Line Items] | ' | ' | ' | |||
Equity income from affiliates | $404 | $642 | $610 | |||
Other [Member] | ' | ' | ' | |||
Equity Income from Affiliates [Line Items] | ' | ' | ' | |||
Equity income from affiliates | 52 | [1] | 21 | [1] | 36 | [1] |
AstraZeneca LP [Member] | ' | ' | ' | |||
Equity Income from Affiliates [Line Items] | ' | ' | ' | |||
Equity income from affiliates | $352 | $621 | $574 | |||
[1] | Primarily reflects results from Sanofi Pasteur MSD and Johnson & Johnson°Merck Consumer Pharmaceuticals Company (which was disposed of on September 29, 2011). |
Joint_Ventures_and_Other_Equit3
Joint Ventures and Other Equity Method Affiliates - Summarized Financial Information for AZLP (Detail) (AstraZeneca LP [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
AstraZeneca LP [Member] | ' | ' | ' | |||
Equity Income from Affiliates [Line Items] | ' | ' | ' | |||
Sales | $4,611 | $4,694 | $4,659 | |||
Materials and production costs | 2,222 | 2,177 | 2,023 | |||
Other expense, net | 1,175 | 1,312 | 1,392 | |||
Income before taxes | 1,214 | [1] | 1,205 | [1] | 1,244 | [1] |
Current assets | 4,832 | 3,662 | ' | |||
Noncurrent assets | 182 | 206 | ' | |||
Current liabilities | $3,958 | $3,145 | ' | |||
[1] | Merck’s partnership returns from AZLP are generally contractually determined as noted above and are not based on a percentage of income from AZLP, other than with respect to Merck’s 1% limited partnership interest. |
Joint_Ventures_and_Other_Equit4
Joint Ventures and Other Equity Method Affiliates - Summarized Financial Information for Affiliates (Excluding AZLP) (Detail) (Other [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Other [Member] | ' | ' | ' | |
Equity Income from Affiliates [Line Items] | ' | ' | ' | |
Sales | $1,326 | $1,295 | $1,331 | [1] |
Materials and production costs | 581 | 573 | 584 | [1] |
Other expense, net | 691 | 705 | 642 | [1] |
Income before taxes | 54 | 17 | 105 | [1] |
Current assets | 1,486 | 971 | ' | |
Noncurrent assets | 149 | 112 | ' | |
Current liabilities | 456 | 480 | ' | |
Noncurrent liabilities | $154 | $97 | ' | |
[1] | Includes information for the JJMCP joint venture until its divestiture on September 29, 2011. |
Joint_Ventures_and_Other_Equit5
Joint Ventures and Other Equity Method Affiliates - Textual (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 1998 | Dec. 31, 1993 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 29, 2011 | Dec. 31, 2011 | |
AstraZeneca LP [Member] | AstraZeneca LP [Member] | AstraZeneca LP [Member] | AstraZeneca LP [Member] | AMI [Member] | Sanofi Pasteur MSD [Member] | Sanofi Pasteur MSD [Member] | Sanofi Pasteur MSD [Member] | Johnson & Johnson Merck Consumer Pharmaceuticals Company [Member] | Johnson & Johnson Merck Consumer Pharmaceuticals Company [Member] | ||||
Equity Income from Affiliates [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership in joint venture | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Limited partner interest in AZLP | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
General partner interest in AZLP | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' | ' | ' | ' | ' |
Revenue from AZLP | ' | ' | ' | $920,000,000 | $915,000,000 | $1,200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Agreed-upon payment to be made by AstraZeneca at closing for exercise of option | ' | ' | ' | 327,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multiple of average annual profit allocation to be included in option exercise price | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Years prior to option exercise to be included in average annual profit allocation portion of exercise price | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales of products marketed by the joint venture | ' | ' | ' | 4,611,000,000 | 4,694,000,000 | 4,659,000,000 | ' | ' | 1,200,000,000 | 1,100,000,000 | 1,100,000,000 | 62,000,000 | ' |
Percentage of interest in equity method investment sold by Merck | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Gain on disposition of interest in equity method investment | 0 | 0 | 136,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,000,000 |
Proceeds from sale of interest in equity method investment | 0 | 0 | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 |
Investments in affiliates accounted for using the equity method | 1,600,000,000 | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from equity method affiliates | $277,000,000 | $302,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Payable_LongTerm_Debt_an2
Loans Payable, Long-Term Debt and Other Commitments - Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Long-Term Debt | $20,539,000,000 | ' | $16,254,000,000 |
2.80% notes due 2023 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 2.80% | 2.80% | ' |
Long-Term Debt | 1,749,000,000 | 1,750,000,000 | ' |
6.50% notes due 2033 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 6.50% | ' | ' |
Long-Term Debt | 1,306,000,000 | ' | 1,310,000,000 |
5.00% notes due 2019 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 5.00% | ' | ' |
Long-Term Debt | 1,293,000,000 | ' | 1,294,000,000 |
4.15% notes due 2043 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 4.15% | 4.15% | ' |
Long-Term Debt | 1,246,000,000 | 1,250,000,000 | ' |
3.875% notes due 2021 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 3.88% | ' | ' |
Long-Term Debt | 1,148,000,000 | ' | 1,147,000,000 |
6.55% notes due 2037 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 6.55% | ' | ' |
Long-Term Debt | 1,143,000,000 | ' | 1,146,000,000 |
6.00% notes due 2017 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 6.00% | ' | ' |
Long-Term Debt | 1,095,000,000 | ' | 1,112,000,000 |
4.00% notes due 2015 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 4.00% | ' | ' |
Long-Term Debt | 1,029,000,000 | ' | 1,049,000,000 |
4.75% notes due 2015 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 4.75% | ' | ' |
Long-Term Debt | 1,023,000,000 | ' | 1,044,000,000 |
2.40% notes due 2022 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 2.40% | ' | ' |
Long-Term Debt | 1,000,000,000 | ' | 1,000,000,000 |
Floating Rate Notes Due 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-Term Debt | 1,000,000,000 | 1,000,000,000 | ' |
1.10% notes due 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 1.10% | ' | ' |
Long-Term Debt | 998,000,000 | ' | 998,000,000 |
0.70% notes due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 0.70% | 0.70% | ' |
Long-Term Debt | 997,000,000 | 1,000,000,000 | ' |
1.30% notes due 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 1.30% | 1.30% | ' |
Long-Term Debt | 975,000,000 | 1,000,000,000 | ' |
2.25% notes due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 2.25% | ' | ' |
Long-Term Debt | 866,000,000 | ' | 874,000,000 |
5.85% notes due 2039 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 5.85% | ' | ' |
Long-Term Debt | 749,000,000 | ' | 749,000,000 |
Floating Rate Notes Due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-Term Debt | 500,000,000 | 500,000,000 | ' |
6.40% debentures due 2028 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 6.40% | ' | ' |
Long-Term Debt | 499,000,000 | ' | 499,000,000 |
5.75% notes due 2036 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 5.75% | ' | ' |
Long-Term Debt | 498,000,000 | ' | 498,000,000 |
5.95% debentures due 2028 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 5.95% | ' | ' |
Long-Term Debt | 498,000,000 | ' | 498,000,000 |
3.60% notes due 2042 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 3.60% | ' | ' |
Long-Term Debt | 492,000,000 | ' | 492,000,000 |
6.30% debentures due 2026 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 6.30% | ' | ' |
Long-Term Debt | 249,000,000 | ' | 248,000,000 |
5.375% euro-denominated notes due 2014 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Stated interest rate of senior unsecured notes | 5.38% | ' | ' |
Long-Term Debt | 0 | ' | 2,058,000,000 |
Other [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-Term Debt | $186,000,000 | ' | $238,000,000 |
Loans_Payable_LongTerm_Debt_an3
Loans Payable, Long-Term Debt and Other Commitments - Textual (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
2.80% notes due 2023 [Member] | 2.80% notes due 2023 [Member] | 2.80% notes due 2023 [Member] | Variable Rate Obligation [Member] | Variable Rate Obligation [Member] | Other Foreign Debt [Member] | Other Foreign Debt [Member] | 4.15% notes due 2043 [Member] | 4.15% notes due 2043 [Member] | 4.15% notes due 2043 [Member] | Underwritten Public Offering of Senior Unsecured Notes [Member] | 0.70% notes due 2016 [Member] | 0.70% notes due 2016 [Member] | 0.70% notes due 2016 [Member] | Floating Rate Notes Due 2016 [Member] | Floating Rate Notes Due 2016 [Member] | Floating Rate Notes Due 2016 [Member] | 1.30% notes due 2018 [Member] | 1.30% notes due 2018 [Member] | 1.30% notes due 2018 [Member] | Floating Rate Notes Due 2018 [Member] | Floating Rate Notes Due 2018 [Member] | Floating Rate Notes Due 2018 [Member] | Commercial paper [Member] | Commercial paper [Member] | Short Term Foreign Borrowings [Member] | Short Term Foreign Borrowings [Member] | Notes Subject To Repayment At Option Of Holder [Member] | Notes Subject To Repayment At Option Of Holder [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, current maturities | $2,100,000,000 | $1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans payable and current portion of long-term debt | 4,521,000,000 | 4,315,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 | 1,700,000,000 | 402,000,000 | 454,000,000 | 370,000,000 | 328,000,000 |
Weighted-average interest rate of commercial paper | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.09% | 0.15% | ' | ' | ' | ' |
Long-Term Debt | 20,539,000,000 | 16,254,000,000 | ' | 1,749,000,000 | 1,750,000,000 | ' | 119,000,000 | 165,000,000 | 64,000,000 | 70,000,000 | 1,246,000,000 | 1,250,000,000 | ' | 6,500,000,000 | 997,000,000 | 1,000,000,000 | ' | 500,000,000 | 500,000,000 | ' | 975,000,000 | 1,000,000,000 | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Average variable rate of other long term debt borrowings | ' | ' | ' | ' | ' | ' | 0.00% | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum rate of foreign borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate of senior unsecured notes | ' | ' | ' | 2.80% | 2.80% | ' | ' | ' | ' | ' | 4.15% | 4.15% | ' | ' | 0.70% | 0.70% | ' | ' | ' | ' | 1.30% | 1.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum total debt to capitalization ratio allowable by financial covenants under certain borrowings | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in 2014 | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in 2015 | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in 2016 | 2,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in 2017 | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturities, repayments of principal in 2018 | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity under credit facility | 4,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense under operating leases net of sublease income | 367,000,000 | 396,000,000 | 411,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases in 2014 | 259,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases in 2015 | 208,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases in 2016 | 132,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases in 2017 | 91,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases in 2018 | 64,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum aggregate rental commitments under noncancellable leases thereafter | $144,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingencies_and_Environmenta1
Contingencies and Environmental Liabilities - Vioxx Litigation - Textual (Detail) (USD $) | Dec. 31, 2013 | Nov. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Vioxx MDL Litigation [Member] | Vioxx MDL Litigation [Member] | Vioxx Non-Missouri [Member] | Vioxx Securities Lawsuits [Member] | Vioxx Missouri [Member] | Vioxx Cases Brought by State Attorneys General [Member] | Vioxx Canadian Litigation [Member] | Vioxx Canadian Litigation [Member] | |
LegalMatter | Kentucky AG [Member] | LegalMatter | Minimum [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, pending claims number | 90 | ' | ' | ' | ' | 4 | ' | ' |
Reflects the estimated amount of loss from the specified contingency as of the balance sheet date | ' | ' | ' | ' | $39,000,000 | ' | $21,000,000 | $36,000,000 |
Litigation settlement agreement amount | ' | 25,000,000 | 23,000,000 | ' | ' | ' | ' | ' |
Upper limit of Directors and Officers insurance coverage | ' | ' | ' | $165,000,000 | ' | ' | ' | ' |
Contingencies_and_Environmenta2
Contingencies and Environmental Liabilities - Fosamax Product Liability Litigation - Textual (Detail) (Fosamax [Member], USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Oct. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Plaintiff | Cases Alleging ONJ [Member] | Femur Fracture [Member] | Federal [Member] | Federal [Member] | Federal [Member] | Federal [Member] | Federal [Member] | Federal [Member] | New Jersey state court [Member] | New Jersey state court [Member] | California State Court [Member] | Other State Court [Member] | Cases Per Month Remanded [Member] | |
LegalMatter | LegalMatter | LegalMatter | ONJ MDL [Member] | ONJ MDL [Member] | ONJ MDL [Member] | ONJ MDL [Member] | Fosamax ONJ MDL [Member] | Femur Fracture MDL [Member] | Cases Alleging ONJ [Member] | Femur Fracture [Member] | Femur Fracture [Member] | Femur Fracture [Member] | Federal [Member] | |
LegalMatter | Plaintiff | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | Fosamax ONJ MDL [Member] | |||||||
LegalMatter | ||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, pending claims number | 5,415 | 1,140 | 4,275 | ' | ' | ' | 855 | ' | 1,105 | 280 | 2,655 | 510 | 7 | 200 |
Number of plaintiff groups | 5,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement agreement amount | ' | $27,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of participation in litigation settlement condition | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Verdict amount | ' | ' | ' | 285,000 | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced verdict amount | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cases tried to verdict | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Verdicts in favor of Merck under appeal by plaintiffs | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, claims dismissed number | ' | ' | ' | ' | ' | ' | ' | 425 | ' | ' | ' | ' | ' | ' |
Initial number of cases selected for review | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | 30 | ' | ' | ' |
Subsequent number of cases selected for review | ' | ' | ' | ' | ' | ' | ' | ' | 33 | ' | 50 | ' | ' | ' |
Contingencies_and_Environmenta3
Contingencies and Environmental Liabilities Contingencies and Environmental Liabilities - Januvia/Janumet Litigation (Details) (Januvia [Member]) | Dec. 31, 2013 |
LegalMatter | |
Loss Contingencies [Line Items] | ' |
Loss contingency, pending claims number | 165 |
Cases Company Agreed ToToll Statute Of Limitations [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss contingency, pending claims number | 2 |
Contingencies_and_Environmenta4
Contingencies and Environmental Liabilities - NuvaRing Litigation - Textual (Detail) (NuvaRing [Member], USD $) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
LegalMatter | LegalMatter | |
Loss Contingencies [Line Items] | ' | ' |
Loss contingency, unfiled claims number | 1,405 | 1,405 |
Litigation settlement agreement amount | ' | $100,000,000 |
Percentage of participation in litigation settlement condition | 95.00% | ' |
Loss contingency, pending claims number | 1,880 | 1,880 |
New Jersey state court [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Loss contingency, pending claims number | 210 | 210 |
Other State Court [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Loss contingency, pending claims number | 7 | 7 |
NuvaRing MDL [Member] | Federal [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Loss contingency, pending claims number | 1,660 | 1,660 |
Contingencies_and_Environmenta5
Contingencies and Environmental Liabilities - Propecia/Proscar Litigation - Textual (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
LegalMatter | |
Propecia [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss contingency, pending claims number | 1,140 |
Number of plaintiff groups | 1,390 |
PropeciaCancer [Member] | ' |
Loss Contingencies [Line Items] | ' |
Number of plaintiff groups | 20 |
Contingencies_and_Environmenta6
Contingencies and Environmental Liabilities - Vytorin/Zetia Litigation - Textual (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | |
ENHANCE Litigation Merck Defendants [Member] | ENHANCE Litigation Schering Plough Defendants [Member] | ENHANCE Litigation Schering Plough Defendants [Member] | ENHANCE Litigation [Member] | ENHANCE Litigation [Member] | |||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement agreement amount | ' | ' | $215,000,000 | $473,000,000 | ' | ' | ' |
Litigation charges | -493,000,000 | -500,000,000 | ' | ' | ' | ' | 493,000,000 |
Insurance recoveries receivable | ' | ' | ' | ' | 195,000,000 | ' | ' |
Payments for legal settlements | ' | 500,000,000 | ' | ' | ' | 480,000,000 | ' |
Insurance recoveries | ' | ' | ' | ' | $208,000,000 | ' | $13,000,000 |
Contingencies_and_Environmenta7
Contingencies and Environmental Liabilities - AWP Litigation - Textual (Detail) (AWP Litigation [Member]) | Dec. 31, 2013 |
LegalMatter | |
AWP Litigation [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss contingency, pending claims number | 1 |
Contingencies_and_Environmenta8
Contingencies and Environmental Liabilities - Environmental Litigation and Matters - Textual (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | ' | ' |
Accrued liabilities for environmental matters | $213 | $145 |
Term for paying off environmental liabilities | '15 years | ' |
Aggregate possible expenditure on environmental matters in excess of amounts accrued | $84 | ' |
Contingencies_and_Environmenta9
Contingencies and Environmental Liabilities - Legal Defense Reserves - Textual (Detail) (Legal Defense Costs [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Legal Defense Costs [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Legal defense costs reserve | $160 | $260 |
Equity_Shareholders_Equity_Det
Equity - Shareholders' Equity (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | ||||||
Movement in Common Stock and Treasury Stock [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Balance January 1 | 3,577,103,522 | 3,577,103,522 | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | 550,000,000 | 536,000,000 | 495,000,000 | |||
Purchases of treasury stock | ' | ' | ' | ' | ' | ' | 139,000,000 | [1] | 62,000,000 | [1] | 58,000,000 | [1] |
Issuances | ' | ' | ' | ' | ' | ' | -39,000,000 | [2] | -48,000,000 | [2] | -17,000,000 | [2] |
Balance December 31 | 3,577,103,522 | 3,577,103,522 | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | 650,000,000 | 550,000,000 | 536,000,000 | |||
[1] | Purchases of treasury stock in 2013 include 105 million shares purchased pursuant to an accelerated share repurchase agreement as discussed below. | |||||||||||
[2] | Issuances primarily reflect activity under share-based compensation plans. |
Equity_Textual_Detail
Equity - Textual (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 20-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | 20-May-13 | Oct. 31, 2013 | ||||
Accelerated share repurchase agreement (ASR) [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | |||||||
Accelerated share repurchase agreement (ASR) [Member] | Accelerated share repurchase agreement (ASR) [Member] | Accelerated share repurchase agreement (ASR) [Member] | |||||||||||
Common stock, shares authorized | 6,500,000,000 | 6,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock, shares authorized | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Purchases of treasury stock | $6,516,000,000 | $2,591,000,000 | $1,921,000,000 | $5,000,000,000 | ' | ' | ' | ' | ' | ' | |||
Purchases of treasury stock, shares | ' | ' | ' | ' | 139,000,000 | [1] | 62,000,000 | [1] | 58,000,000 | [1] | 5,500,000 | 99,500,000 | 105,000,000 |
Par value preferred stock obligation assumed in connection with 1998 restructuring of AMI | $2,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock dividend rate | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Purchases of treasury stock in 2013 include 105 million shares purchased pursuant to an accelerated share repurchase agreement as discussed below. |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans - Assumptions Used to Determine Weighted-Average Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Expected dividend yield | 4.20% | 4.40% | 4.30% |
Risk-free interest rate | 1.20% | 1.30% | 2.50% |
Expected volatility | 25.00% | 25.20% | 23.40% |
Expected life (years) | '7 years | '7 years | '7 years |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans - Summary of Information Relative to Stock Option Plan Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Number of Options Outstanding, January 1 | 165,941 | ' | ' |
Number of Options, Granted | 5,703 | ' | ' |
Number of Options, Exercised | -33,278 | ' | ' |
Number of Options, Forfeited | -22,561 | ' | ' |
Number of Options Outstanding, December 31 | 115,805 | 165,941 | ' |
Number of Options Exercisable | 101,600 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Weighted Average Exercise Price, Options Outstanding, January 1 | $39.46 | ' | ' |
Weighted Average Exercise Price, Granted | $45.01 | $39.51 | $36.47 |
Weighted Average Exercise Price, Exercised | $36.37 | ' | ' |
Weighted Average Exercise Price, Forfeited | $49.01 | ' | ' |
Weighted Average Exercise Price, Options Outstanding, December 31 | $38.75 | $39.46 | ' |
Weighted Average Exercise Price Exercisable | $38.48 | ' | ' |
Weighted Average Remaining Contractual Term, Outstanding | '3 years 9 months 15 days | ' | ' |
Weighted Average Remaining Contractual Term, Exercisable | '3 years 3 months 0 days | ' | ' |
Aggregate Intrinsic Value, Outstanding | $1,320 | ' | ' |
Aggregate Intrinsic Value, Exercisable | $1,187 | ' | ' |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans - Additional Information Pertaining to Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Total intrinsic value of stock options exercised | $374 | $528 | $125 |
Fair value of stock options vested | 42 | 80 | 189 |
Cash received from the exercise of stock options | $1,210 | $1,310 | $321 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans - Summary of Nonvested RSU and PSU Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
RSU [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Number of Shares, Nonvested January 1 | 22,743 |
Number of Shares, Granted | 6,394 |
Number of Shares, Vested | -8,705 |
Number of Shares, Forfeited | -1,298 |
Number of Shares, Nonvested December 31 | 19,134 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Weighted Average Grant Date Fair Value, Nonvested January 1 | $36.38 |
Weighted Average Grant Date Fair Value, Granted | $45.04 |
Weighted Average Grant Date Fair Value, Vested | $34.10 |
Weighted Average Grant Date Fair Value, Forfeited | $40.02 |
Weighted Average Grant Date Fair Value, Nonvested December 31 | $40.07 |
PSU [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Number of Shares, Nonvested January 1 | 1,648 |
Number of Shares, Granted | 963 |
Number of Shares, Vested | -839 |
Number of Shares, Forfeited | -99 |
Number of Shares, Nonvested December 31 | 1,673 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Weighted Average Grant Date Fair Value, Nonvested January 1 | $33.78 |
Weighted Average Grant Date Fair Value, Granted | $38.25 |
Weighted Average Grant Date Fair Value, Vested | $34.17 |
Weighted Average Grant Date Fair Value, Forfeited | $36.71 |
Weighted Average Grant Date Fair Value, Nonvested December 31 | $35.98 |
ShareBased_Compensation_Plans_5
Share-Based Compensation Plans - Textual (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares collectively authorized for future grants under share-based compensation plans | 143 | ' | ' |
Period for which awards under employee stock option are vested | '3 years | ' | ' |
Quantity of stock options that vest per year | 33.33% | ' | ' |
Pretax share-based compensation cost | $276 | $335 | $369 |
Income tax benefits related to share-based compensation | 84 | 105 | 118 |
Weighted average exercise price of options granted | $45.01 | $39.51 | $36.47 |
Weighted average fair value of options granted | $6.21 | $5.47 | $5.39 |
Total pre tax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards | $374 | ' | ' |
Weighted average period in years of recognition for nonvested stock options, RSU and PSU awards | '1 year 11 months | ' | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Contractual term of options | '7 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Contractual term of options | '10 years | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $682 | $555 | $619 |
Interest cost | 665 | 661 | 718 |
Expected return on plan assets | -1,097 | -970 | -972 |
Net amortization | 336 | 185 | 201 |
Termination benefits | 58 | 27 | 59 |
Curtailments | -23 | -10 | -86 |
Settlements | 23 | 18 | 4 |
Net periodic benefit cost | 644 | 466 | 543 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 102 | 82 | 110 |
Interest cost | 107 | 121 | 141 |
Expected return on plan assets | -126 | -136 | -142 |
Net amortization | -50 | -35 | -17 |
Termination benefits | 50 | 18 | 29 |
Curtailments | -11 | -7 | 1 |
Settlements | 0 | 0 | 0 |
Net periodic benefit cost | $72 | $43 | $122 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefit Plans - Obligation and Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets January 1 | $15,349 | $12,481 | ' |
Actual return on plan assets | 2,524 | 1,739 | ' |
Company contributions | 645 | 1,853 | ' |
Effects of exchange rate changes | -84 | 3 | ' |
Benefits paid | -780 | -673 | ' |
Settlements | -236 | -75 | ' |
Other | 17 | 21 | ' |
Fair value of plan assets December 31 | 17,435 | 15,349 | 12,481 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation January 1 | 17,646 | 14,416 | ' |
Service cost | 682 | 555 | 619 |
Interest cost | 665 | 661 | 718 |
Actuarial (gains) losses | -1,689 | 2,660 | ' |
Benefits paid | -780 | -673 | ' |
Effects of exchange rate changes | -21 | 67 | ' |
Plan amendments | -225 | 2 | ' |
Curtailments | -61 | -17 | ' |
Termination benefits | 58 | 27 | 59 |
Settlements | -236 | -75 | ' |
Other | 16 | 23 | ' |
Benefit obligation December 31 | 16,055 | 17,646 | 14,416 |
Funded status December 31 | 1,380 | -2,297 | ' |
Recognized as: | ' | ' | ' |
Other assets | 2,811 | 355 | ' |
Accrued and other current liabilities | -53 | -50 | ' |
Other noncurrent liabilities | -1,378 | -2,602 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets January 1 | 1,760 | 1,628 | ' |
Actual return on plan assets | 199 | 200 | ' |
Company contributions | 73 | 48 | ' |
Effects of exchange rate changes | 0 | 0 | ' |
Benefits paid | -119 | -115 | ' |
Settlements | 0 | 0 | ' |
Other | 0 | -1 | ' |
Fair value of plan assets December 31 | 1,913 | 1,760 | 1,628 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation January 1 | 2,650 | 2,529 | ' |
Service cost | 102 | 82 | 110 |
Interest cost | 107 | 121 | 141 |
Actuarial (gains) losses | -428 | 88 | ' |
Benefits paid | -119 | -115 | ' |
Effects of exchange rate changes | -5 | 0 | ' |
Plan amendments | -38 | -86 | ' |
Curtailments | 0 | 1 | ' |
Termination benefits | 50 | 18 | 29 |
Settlements | 0 | 0 | ' |
Other | 10 | 12 | ' |
Benefit obligation December 31 | 2,329 | 2,650 | 2,529 |
Funded status December 31 | -416 | -890 | ' |
Recognized as: | ' | ' | ' |
Other assets | 0 | 506 | ' |
Accrued and other current liabilities | -8 | -9 | ' |
Other noncurrent liabilities | ($408) | ($1,387) | ' |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefit Plans - Fair Values of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | |||||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | $622 | $692 | $637 | ||
Significant Unobservable Inputs (Level 3) [Member] | Insurance contracts, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 540 | 496 | 428 | ||
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 17,435 | 15,349 | 12,481 | ||
Pension Plans, Defined Benefit [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 335 | 729 | ' | ||
Pension Plans, Defined Benefit [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 8,451 | 6,669 | ' | ||
Pension Plans, Defined Benefit [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,199 | 892 | ' | ||
Pension Plans, Defined Benefit [Member] | Government and agency obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,473 | 999 | ' | ||
Pension Plans, Defined Benefit [Member] | Corporate obligations, Investment Funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 265 | 260 | ' | ||
Pension Plans, Defined Benefit [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 162 | 220 | ' | ||
Pension Plans, Defined Benefit [Member] | Real estate, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 110 | [1] | 159 | [1] | ' |
Pension Plans, Defined Benefit [Member] | Developed markets, Equity securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 2,546 | 2,277 | ' | ||
Pension Plans, Defined Benefit [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,098 | 1,054 | ' | ||
Pension Plans, Defined Benefit [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 741 | 1,008 | ' | ||
Pension Plans, Defined Benefit [Member] | Mortgage and asset backed-securities, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 299 | 269 | ' | ||
Pension Plans, Defined Benefit [Member] | Insurance contracts, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 668 | [2] | 613 | [2] | ' |
Pension Plans, Defined Benefit [Member] | Other, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 87 | 108 | ' | ||
Pension Plans, Defined Benefit [Member] | Assets [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1 | 162 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 4,110 | 3,688 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 88 | 142 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 808 | 683 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 163 | 121 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Government and agency obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 293 | 279 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Corporate obligations, Investment Funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 188 | 166 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 17 | 14 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Real estate, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 4 | [1] | 4 | [1] | ' |
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 2,546 | 2,277 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 2 | 2 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Mortgage and asset backed-securities, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Insurance contracts, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | [2] | 0 | [2] | ' |
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Other, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Assets [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 12,703 | 10,969 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 247 | 587 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 7,643 | 5,986 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,036 | 771 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government and agency obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,180 | 720 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate obligations, Investment Funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 77 | 94 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 145 | 206 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Real estate, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 57 | [1] | 14 | [1] | ' |
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 1,096 | 1,052 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 741 | 1,008 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage and asset backed-securities, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 299 | 269 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Insurance contracts, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 128 | [2] | 117 | [2] | ' |
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 54 | 53 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Assets [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 162 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 622 | 692 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government and agency obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate obligations, Investment Funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Real estate, Investment funds [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 49 | [1] | 141 | [1] | ' |
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage and asset backed-securities, Fixed income securities [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Insurance contracts, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 540 | [2] | 496 | [2] | ' |
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 33 | 55 | ' | ||
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Assets [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Liability [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 70 | ' | ||
Pension Plans, Defined Benefit [Member] | Liability [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 0 | ' | ||
Pension Plans, Defined Benefit [Member] | Liability [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | 0 | 70 | ' | ||
Pension Plans, Defined Benefit [Member] | Liability [Member] | Significant Unobservable Inputs (Level 3) [Member] | Derivatives, Other investments [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair Value of Plan Assets | $0 | $0 | ' | ||
[1] | The plans’ Level 3 investments in real estate funds are generally valued by market appraisals of the underlying investments in the funds. | ||||
[2] | The plans’ Level 3 investments in insurance contracts are generally valued using a crediting rate that approximates market returns and invest in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefit Plans - Summary of Changes in Fair Value of Company's Level 3 Pension Plan Assets (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets January 1 | $692 | $637 |
Relating to assets still held at December 31 | 31 | 53 |
Relating to assets sold during the year | 3 | -6 |
Purchases | 21 | 25 |
Sales | -31 | -26 |
Transfers (out of) into Level 3 | -94 | 9 |
Fair value of plan assets December 31 | 622 | 692 |
Insurance Contracts [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets January 1 | 496 | 428 |
Relating to assets still held at December 31 | 30 | 35 |
Relating to assets sold during the year | 1 | 1 |
Purchases | 18 | 21 |
Sales | -2 | -11 |
Transfers (out of) into Level 3 | -3 | 22 |
Fair value of plan assets December 31 | 540 | 496 |
Real Estate [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets January 1 | 141 | 144 |
Relating to assets still held at December 31 | 0 | 20 |
Relating to assets sold during the year | -1 | -12 |
Purchases | 0 | 0 |
Sales | 0 | -1 |
Transfers (out of) into Level 3 | -91 | -10 |
Fair value of plan assets December 31 | 49 | 141 |
Other Investment [Member] | ' | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets January 1 | 55 | 65 |
Relating to assets still held at December 31 | 1 | -2 |
Relating to assets sold during the year | 3 | 5 |
Purchases | 3 | 4 |
Sales | -29 | -14 |
Transfers (out of) into Level 3 | 0 | -3 |
Fair value of plan assets December 31 | $33 | $55 |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefit Plans - Fair Values of Other Postretirement Benefit Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | $622 | $692 | $637 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 1,913 | 1,760 | 1,628 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 67 | 75 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 721 | 538 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 131 | 112 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 17 | 26 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Developed markets, Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 199 | 139 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 257 | 298 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 281 | 310 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Mortgage and asset-backed securities, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 219 | 238 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Other Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 21 | 24 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 339 | 243 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 47 | 27 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 54 | 37 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 36 | 37 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 3 | 3 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 199 | 139 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Mortgage and asset-backed securities, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Other Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 1,574 | 1,517 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 20 | 48 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 667 | 501 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 95 | 75 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 14 | 23 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 257 | 298 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 281 | 310 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage and asset-backed securities, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 219 | 238 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 21 | 24 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Developed markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Emerging markets equities, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed income obligations, Investment funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Developed markets, Equity securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government and agency obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate obligations, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage and asset-backed securities, Fixed income securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | $0 | $0 | ' |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefit Plans - Summary of Expected Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $651 |
2015 | 663 |
2016 | 675 |
2017 | 699 |
2018 | 739 |
2019 - 2023 | 4,440 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 119 |
2015 | 129 |
2016 | 134 |
2017 | 139 |
2018 | 145 |
2019 - 2023 | $811 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefit Plans - Components of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ($3,917) | $1,852 | $573 |
Net loss amortization included in benefit cost | -286 | -136 | -151 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net gain (loss) arising during the period | 3,189 | -1,907 | -1,628 |
Prior service credit (cost) arising during the period | 203 | -13 | 783 |
Total | 3,392 | -1,920 | -845 |
Net loss amortization included in benefit cost | 407 | 256 | 196 |
Prior service (credit) cost amortization included in benefit cost | -71 | -71 | 5 |
Total | 336 | 185 | 201 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net gain (loss) arising during the period | 499 | -24 | 106 |
Prior service credit (cost) arising during the period | 26 | 78 | 133 |
Total | 525 | 54 | 239 |
Net loss amortization included in benefit cost | 23 | 31 | 38 |
Prior service (credit) cost amortization included in benefit cost | -73 | -66 | -55 |
Total | ($50) | ($35) | ($17) |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefit Plans - Summary of Weighted Average Assumptions Used in Determining Pension Plan and U.S. Pension and Other Postretirement Benefit Plan Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Net periodic benefit cost | ' | ' | ' |
Discount rate | 3.90% | 4.70% | 5.20% |
Expected rate of return on plan assets | 7.50% | 7.50% | 7.50% |
Salary growth rate | 4.20% | 4.00% | 4.20% |
Benefit obligation | ' | ' | ' |
Discount rate | 4.50% | 3.90% | 4.70% |
Salary growth rate | 4.00% | 4.20% | 4.00% |
U.S. Pension and Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Net periodic benefit cost | ' | ' | ' |
Discount rate | 4.10% | 4.80% | 5.40% |
Expected rate of return on plan assets | 8.50% | 8.70% | 8.70% |
Salary growth rate | 4.50% | 4.50% | 4.50% |
Benefit obligation | ' | ' | ' |
Discount rate | 5.10% | 4.10% | 4.80% |
Salary growth rate | 4.50% | 4.50% | 4.50% |
Recovered_Sheet1
Pension and Other Postretirement Benefit Plans - Summary of Health Care Cost Trend Rate Assumptions for Other Postretirement Benefit Plans (Detail) (Other Postretirement Benefit Plans, Defined Benefit [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Health care cost trend rate assumed for next year | 7.10% | 7.50% |
Rate to which the cost trend rate is assumed to decline | 4.60% | 5.00% |
Year that the trend rate reaches the ultimate trend rate | '2027 | '2018 |
Recovered_Sheet2
Pension and Other Postretirement Benefit Plans - One Percentage Point Change in Health Care Cost Trend Rate (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ' |
Effect on total service and interest cost components, Increase | $38 |
Effect on benefit obligation, Increase | 316 |
Effect on total service and interest cost components, Decrease | -30 |
Effect on benefit obligation, Decrease | ($262) |
Recovered_Sheet3
Pension and Other Postretirement Benefit Plans - Textual (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of Company's pension projected benefit obligation that relates to international defined benefit plans | 46.00% | 44.00% | ' |
Accumulated benefit obligation | $14,800,000,000 | $15,900,000,000 | ' |
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets | 1,500,000,000 | 12,800,000,000 | ' |
Projected benefit obligations for pension plans with benefit obligations in excess of plan assets | 3,000,000,000 | 15,500,000,000 | ' |
Fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 1,400,000,000 | 6,100,000,000 | ' |
Accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | 2,500,000,000 | 7,700,000,000 | ' |
Percentage of Company's pension investments categorized as Level 3 assets | 4.00% | 5.00% | ' |
Expected annual standard deviation in returns of the target portfolio which reflects both the equity allocation and the diversification benefits among the asset classes in which the portfolio invests | 13.00% | ' | ' |
Employer contributions to defined contribution savings plans | 138,000,000 | 146,000,000 | 166,000,000 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 622,000,000 | 692,000,000 | 637,000,000 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net periodic benefit cost | 644,000,000 | 466,000,000 | 543,000,000 |
Fair Value of Plan Assets | 17,435,000,000 | 15,349,000,000 | 12,481,000,000 |
Projected benefit obligation | 16,055,000,000 | 17,646,000,000 | 14,416,000,000 |
Expected contributions to the pension plans and other postretirement benefit plans during next fiscal year | 250,000,000 | ' | ' |
Estimated net loss (gain) amounts that will be amortized from AOCI into net pension and postretirement benefit cost during next fiscal year | 214,000,000 | ' | ' |
Estimated prior service cost (credit) amounts that will be amortized from AOCI into net pension and postretirement benefit cost during next fiscal year | -146,000,000 | ' | ' |
Expected rate of return on plan assets | 7.50% | 7.50% | 7.50% |
Pension Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 622,000,000 | 692,000,000 | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net periodic benefit cost | 72,000,000 | 43,000,000 | 122,000,000 |
Fair Value of Plan Assets | 1,913,000,000 | 1,760,000,000 | 1,628,000,000 |
Projected benefit obligation | 2,329,000,000 | 2,650,000,000 | 2,529,000,000 |
Expected contributions to the pension plans and other postretirement benefit plans during next fiscal year | 75,000,000 | ' | ' |
Estimated net loss (gain) amounts that will be amortized from AOCI into net pension and postretirement benefit cost during next fiscal year | 2,000,000 | ' | ' |
Estimated prior service cost (credit) amounts that will be amortized from AOCI into net pension and postretirement benefit cost during next fiscal year | -75,000,000 | ' | ' |
Other Postretirement Benefit Plans, Defined Benefit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair Value of Plan Assets | 0 | 0 | ' |
U.S. Pension And Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected rate of return on plan assets | 8.50% | 8.70% | 8.70% |
U.S. Pension And Other Postretirement Benefit Plan [Member] | U.S. Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 40.00% | ' | ' |
Maximum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 60.00% | ' | ' |
U.S. Pension And Other Postretirement Benefit Plan [Member] | International Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 20.00% | ' | ' |
Maximum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 40.00% | ' | ' |
U.S. Pension And Other Postretirement Benefit Plan [Member] | Fixed Income Investments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 15.00% | ' | ' |
Maximum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 25.00% | ' | ' |
U.S. Pension And Other Postretirement Benefit Plan [Member] | Cash And Other Investments [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum percentage allocation of target investment portfolio of the Company's U.S. pension and other postretirement benefit plans | 5.00% | ' | ' |
U.S. Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net periodic benefit cost | 348,000,000 | 268,000,000 | 406,000,000 |
Fair Value of Plan Assets | 10,000,000,000 | 8,700,000,000 | ' |
Projected benefit obligation | 8,700,000,000 | 10,000,000,000 | ' |
Accumulated benefit obligation | $8,000,000,000 | $9,000,000,000 | ' |
Minimum [Member] | U.S. Pension And Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected rate of return on plan assets | 6.00% | ' | ' |
Maximum [Member] | U.S. Pension And Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected rate of return on plan assets | 8.75% | ' | ' |
Scenario, Forecast [Member] | Minimum [Member] | U.S. Pension And Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected rate of return on plan assets | 7.30% | ' | ' |
Scenario, Forecast [Member] | Maximum [Member] | U.S. Pension And Other Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expected rate of return on plan assets | 8.75% | ' | ' |
Other_Income_Expense_Net_Detai
Other (Income) Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Nonoperating Income (Expense) [Abstract] | ' | ' | ' |
Interest income | ($264) | ($232) | ($145) |
Interest expense | 801 | 714 | 695 |
Exchange losses | 290 | 185 | 143 |
Other, net | -12 | 449 | 253 |
Other (income) expense, net | $815 | $1,116 | $946 |
Other_Income_Expense_Net_Textu
Other (Income) Expense, Net - Textual (Detail) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 28, 2013 | Feb. 28, 2013 |
USD ($) | USD ($) | USD ($) | VENEZUELA | Before Devaluation [Member] | After Devaluation [Member] | |
USD ($) | VENEZUELA | VENEZUELA | ||||
VEF | VEF | |||||
Component of Other Income / Expense of Nonoperating [Line Items] | ' | ' | ' | ' | ' | ' |
Foreign currency transaction loss | $290 | $185 | $143 | $140 | ' | ' |
Foreign Currency Exchange Rate, Translation | ' | ' | ' | ' | 4.3 | 6.3 |
Litigation charges | ' | -493 | -500 | ' | ' | ' |
Gain on disposition of interest in equity method investment | 0 | 0 | 136 | ' | ' | ' |
Gain on sale of manufacturing facilities and related assets | ' | ' | 127 | ' | ' | ' |
Interest paid | 922 | 808 | 600 | ' | ' | ' |
Cash received from interest rate swap terminations | ' | ' | $288 | ' | ' | ' |
Taxes_on_Income_Reconciliation
Taxes on Income - Reconciliation Between Effective Tax Rate and US Statutory Rate (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ' | ' | ' | |||
U.S. statutory rate applied to income before taxes, Tax rate | 35.00% | 35.00% | 35.00% | |||
Differential arising from: | ' | ' | ' | |||
Foreign earnings, Tax rate | -23.70% | -22.40% | -30.30% | |||
Tax settlements, Tax rate | -9.00% | -1.30% | -9.80% | |||
The American Taxpayer Relief Act of 2012, Tax rate | -4.80% | 0.00% | 0.00% | |||
Unremitted foreign earnings, Tax rate | -1.50% | -0.10% | -1.20% | |||
Tax rate changes, Tax rate | -0.20% | 0.60% | -4.00% | |||
Amortization of purchase accounting adjustments, Tax rate | 16.80% | 10.30% | 11.90% | |||
Restructuring, Tax rate | 4.00% | 0.70% | 2.20% | |||
U.S. health care reform legislation, Tax rate | 1.20% | 0.70% | 0.70% | |||
Intangible asset impairment charges, Percent | 1.00% | 0.50% | -0.10% | |||
Vioxx and ENHANCE litigation settlements, Tax rate | 0.00% | 1.20% | 0.00% | |||
Arbitration settlement charge, Tax rate | 0.00% | 0.00% | 2.40% | |||
State taxes, Tax rate | 0.80% | 0.30% | 1.00% | |||
Other, Tax rate | -1.10% | [1] | 2.40% | [1] | 5.00% | [1] |
Total, Tax rate | 18.50% | 27.90% | 12.80% | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' | |||
U.S. statutory rate applied to income before taxes, Amount | $1,941 | $3,059 | $2,567 | |||
Differential arising from: | ' | ' | ' | |||
Foreign earnings, Amount | -1,316 | -1,955 | -2,220 | |||
Federal and state tax settlements, Amount | -497 | -113 | -721 | |||
The American Taxpayer Relief Act of 2012, Amount | -269 | 0 | 0 | |||
Unremitted foreign earnings, Amount | -81 | -11 | -86 | |||
Tax rate changes, Amount | -10 | 57 | -295 | |||
Amortization of purchase accounting adjustments, Amount | 934 | 905 | 875 | |||
Restructuring, Amount | 224 | 62 | 163 | |||
U.S. health care reform legislation, Amount | 65 | 60 | 50 | |||
Intangible asset impairment charges, Amount | 56 | 40 | -5 | |||
Vioxx Liability Reserve, Amount | 0 | 98 | 0 | |||
Arbitration settlement charge, Amount | 0 | 0 | 177 | |||
State taxes, Amount | 44 | 31 | 72 | |||
Other, Amount | -63 | [1] | 207 | [1] | 365 | [1] |
Taxes on income | $1,028 | $2,440 | $942 | |||
[1] | Other includes the tax effect of contingency reserves, research credits and miscellaneous items. |
Taxes_on_Income_Income_Before_
Taxes on Income - Income Before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $3,513 | $4,500 | $2,626 |
Foreign | 2,032 | 4,239 | 4,708 |
Income Before Taxes | $5,545 | $8,739 | $7,334 |
Taxes_on_Income_Taxes_on_Incom
Taxes on Income - Taxes on Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current provision | ' | ' | ' |
Federal | $568 | $1,346 | $859 |
Foreign | 923 | 651 | 1,568 |
State | -133 | -226 | 52 |
Total current provision | 1,358 | 1,771 | 2,479 |
Deferred provision | ' | ' | ' |
Federal | 30 | 749 | -584 |
Foreign | -398 | -323 | -683 |
State | 38 | 243 | -270 |
Total deferred provision | -330 | 669 | -1,537 |
Taxes on income | $1,028 | $2,440 | $942 |
Taxes_on_Income_Deferred_Incom
Taxes on Income - Deferred Income Taxes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax [Line Items] | ' | ' |
Inventory related, Assets | $49 | $79 |
Accelerated depreciation, Assets | 125 | 129 |
Pensions and other postretirement benefits, Assets | 162 | 1,098 |
Compensation related, Assets | 600 | 748 |
Unrecognized tax benefits, Assets | 497 | 706 |
Net operating losses and other tax credit carryforwards, Assets | 225 | 425 |
Other, Assets | 1,605 | 1,798 |
Subtotal, Assets | 3,263 | 4,983 |
Valuation allowance, Assets | -205 | -107 |
Deferred Tax Assets | 3,058 | 4,876 |
Intangibles, Liabilities | 3,772 | 4,584 |
Inventory related, Liabilities | 604 | 488 |
Accelerated depreciation, Liabilities | 1,215 | 1,348 |
Unremitted foreign earnings, Liabilities | 2,361 | 2,435 |
Equity investments, Liabilities | 539 | 451 |
Pensions and other postretirement benefits, Liabilities | 543 | 109 |
Other, Liabilities | 71 | 91 |
Subtotal, Liabilities | 9,105 | 9,506 |
Deferred Tax Liabilities | 6,047 | 4,630 |
Deferred Income Taxes | 6,776 | 5,740 |
Income Taxes Payable [Member] | ' | ' |
Income Tax [Line Items] | ' | ' |
Deferred Tax Liabilities | 224 | 41 |
Deferred income taxes and other current assets [Member] | ' | ' |
Income Tax [Line Items] | ' | ' |
Deferred Tax Assets | 572 | 624 |
Other assets [Member] | ' | ' |
Income Tax [Line Items] | ' | ' |
Deferred Tax Assets | $381 | $527 |
Taxes_on_Income_Unrecognized_T
Taxes on Income - Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | |||
Balance January 1 | $4,425 | $4,277 | $4,919 | |||
Additions related to current year positions | 320 | 496 | 695 | |||
Additions related to prior year positions | 177 | 58 | 145 | |||
Reductions for tax positions of prior years | -747 | [1] | -320 | [1] | -1,223 | [1] |
Settlements | -603 | -67 | -259 | |||
Lapse of statute of limitations | -69 | -19 | 0 | |||
Balance December 31 | $3,503 | $4,425 | $4,277 | |||
[1] | Amounts reflect the settlements with the IRS and CRA as discussed below. |
Taxes_on_Income_Textual_Detail
Taxes on Income - Textual (Detail) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||||
Income Tax [Line Items] | ' | ' | ' | ' | |||
U.S. statutory rate applied to income before taxes, Tax rate | 35.00% | 35.00% | 35.00% | ' | |||
Deferred tax assets on NOL carryforwards relating to foreign jurisdictions | $170,000,000 | ' | ' | ' | |||
Deferred tax assets relating to various U.S. tax credit carryforwards and NOL carryforwards | 55,000,000 | ' | ' | ' | |||
Income taxes paid | 2,300,000,000 | 2,500,000,000 | 2,700,000,000 | ' | |||
Tax benefits relating to stock option exercises, paid-in capital | 61,000,000 | 94,000,000 | ' | ' | |||
Unrecognized tax benefits | 3,503,000,000 | 4,425,000,000 | 4,277,000,000 | 4,919,000,000 | |||
Favorable net impact to income tax provision if unrecognized tax benefits were recognized | 3,300,000,000 | ' | ' | ' | |||
Reasonably possible amount that liability for unrecognized tax benefits could decline up to in next 12 months | 128,000,000 | ' | ' | ' | |||
Interest and penalties associated with uncertain tax positions, (benefit) expense | 319,000,000 | 88,000,000 | 95,000,000 | ' | |||
Liabilities for accrued interest and penalties | 665,000,000 | 1,200,000,000 | ' | ' | |||
Decrease in unrecognized tax benefits resulting from prior period tax positions | 747,000,000 | [1] | 320,000,000 | [1] | 1,223,000,000 | [1] | ' |
Foreign earnings retained indefinitely by subsidiary companies for reinvestments | 57,100,000,000 | ' | ' | ' | |||
Foreign Jurisdiction [Member] | ' | ' | ' | ' | |||
Income Tax [Line Items] | ' | ' | ' | ' | |||
Valuation allowance on foreign NOL carryforwards | 205,000,000 | ' | ' | ' | |||
Canada Revenue Agency (CRA) [Member] | ' | ' | ' | ' | |||
Income Tax [Line Items] | ' | ' | ' | ' | |||
Decrease in unrecognized tax benefits resulting from prior period tax positions | ' | 112,000,000 | ' | ' | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | ' | 65,000,000 | ' | ' | |||
IRS [Member] | ' | ' | ' | ' | |||
Income Tax [Line Items] | ' | ' | ' | ' | |||
Decrease in unrecognized tax benefits resulting from prior period tax positions | 165,000,000 | ' | 700,000,000 | ' | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | ' | ' | 465,000,000 | ' | |||
Intercompany pricing matters [Member] | IRS [Member] | ' | ' | ' | ' | |||
Income Tax [Line Items] | ' | ' | ' | ' | |||
Decrease in unrecognized tax benefits resulting from prior period tax positions | $160,000,000 | ' | ' | ' | |||
[1] | Amounts reflect the settlements with the IRS and CRA as discussed below. |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculations of Earnings Per Share (Detail) (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Basic Earnings per Common Share | ' | ' | ' | |||
Net Income Attributable to Merck & Co., Inc. | $4,404 | $6,168 | $6,272 | |||
Less: Income allocated to participating securities | 0 | 3 | 15 | |||
Net income allocated to common shareholders | 4,404 | 6,165 | 6,257 | |||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||
Basic Earnings per Common Share | $1.49 | $2.03 | $2.04 | |||
Earnings per Common Share Assuming Dilution | ' | ' | ' | |||
Net Income Attributable to Merck & Co., Inc. | 4,404 | 6,168 | 6,272 | |||
Less: Income allocated to participating securities | 0 | 3 | 15 | |||
Net income allocated to common shareholders | $4,404 | $6,165 | $6,257 | |||
Average common shares outstanding | 2,963 | 3,041 | 3,071 | |||
Common shares issuable | 33 | [1] | 35 | [1] | 23 | [1] |
Average common shares outstanding assuming dilution | 2,996 | 3,076 | 3,094 | |||
Diluted Earnings per Common Share | $1.47 | $2 | $2.02 | |||
[1] | Issuable primarily under share-based compensation plans. |
Earnings_Per_Share_Textual_Det
Earnings Per Share - Textual (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Period for which awards under employee stock option are vested | '3 years | ' | ' |
Common shares issuable under share-based compensation plans excluded from diluted earnings per common share because the effect would have been antidilutive | 25 | 104 | 169 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Changes in AOCI by Component (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Comprehensive Income (Loss), Derivatives [Roll Forward] | ' | ' | ' | |||
Derivatives, Beginning Balance | ($97) | $4 | $41 | |||
Derivatives, Other comprehensive income (loss) before reclassification adjustments, pretax | 335 | -198 | -143 | |||
Derivatives, Tax | -132 | 77 | 56 | |||
Derivatives, Other comprehensive income (loss) before reclassification adjustments, net of taxes | 203 | -121 | -87 | |||
Derivatives, Reclassification adjustments, pretax | 42 | 33 | 83 | |||
Derivatives, Reclassification adjustments, Tax | -16 | -13 | -33 | |||
Derivatives, Reclassification adjustments, net of taxes | 26 | [1] | 20 | [1] | 50 | [1] |
Derivatives, Other comprehensive income (loss), net of taxes | 229 | -101 | -37 | |||
Derivatives, Ending Balance | 132 | -97 | 4 | |||
Other Comprehensive Income (Loss), Investments [Roll Forward] | ' | ' | ' | |||
Investments, Beginning Balance | 73 | 21 | 31 | |||
Investments, Other comprehensive income (loss) before reclassification adjustments, pretax | 33 | 74 | -10 | |||
Investments, Other comprehensive income (loss), Tax | -23 | -10 | 5 | |||
Investments, Other comprehensive income (loss) before reclassification adjustments, net of taxes | 10 | 64 | -5 | |||
Investments, Reclassification adjustments, pretax | -39 | -13 | -7 | |||
Investments, Reclassification adjustments, Tax | 10 | 1 | 2 | |||
Investments, Reclassification adjustments, net of taxes | -29 | [2] | -12 | [2] | -5 | [2] |
Investments, Other comprehensive income (loss), net of taxes | -19 | 52 | -10 | |||
Investments, Ending Balance | 54 | 73 | 21 | |||
Other Comprehensive Income (Loss), Employee Benefit Plans [Roll Forward] | ' | ' | ' | |||
Employee Benefit Plans, Beginning Balance | -3,667 | [3] | -2,346 | -2,043 | ||
Employee Benefit Plans, Other comprehensive income (loss) before reclassifications adjustments, pretax | 3,917 | -1,852 | -573 | |||
Employee Benefit Plans, Tax | -1,365 | 450 | 187 | |||
Employee Benefit Plans, Other comprehensive income (loss) before reclassification adjustments, net of taxes | 2,552 | -1,402 | -386 | |||
Employee Benefit Plans, Reclassification adjustments, pretax | 286 | 136 | 151 | |||
Employee Benefit Plans, Reclassification adjustments, Tax | -80 | -55 | -68 | |||
Employee Benefit Plans, Reclassification adjustments, net of taxes | 206 | [4] | 81 | [4] | 83 | [4] |
Employee Benefit Plans, Other comprehensive income (loss), net of taxes | 2,758 | -1,321 | -303 | |||
Employee Benefit Plans, Ending Balance | -909 | [3] | -3,667 | [3] | -2,346 | |
Other Comprehensive Income (Loss), Cumulative Translation Adjustment [Roll Forward] | ' | ' | ' | |||
Cumulative Translation Adjustment, Beginning Balance | -991 | -811 | -1,245 | |||
Cumulative Translation Adjustment, Other comprehensive income (loss) before reclassification adjustments, pretax | -383 | -99 | 435 | |||
Cumulative Translation Adjustment, Tax | -100 | -81 | -1 | |||
Cumulative Translation Adjustment, Other comprehensive income (loss) before reclassification adjustments, net of taxes | -483 | -180 | 434 | |||
Cumulative Translation Adjustment, Reclassification adjustments, pretax | 0 | 0 | 0 | |||
Cumulative Translation Adjustment, Reclassification adjustments, Tax | 0 | 0 | 0 | |||
Cumulative Translation Adjustment, Reclassification adjustments, net of taxes | 0 | 0 | 0 | |||
Cumulative Translation Adjustment, Other comprehensive income (loss), net of taxes | -483 | -180 | 434 | |||
Cumulative Translation Adjustment, Ending Balance | -1,474 | -991 | -811 | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -4,682 | -3,132 | -3,216 | |||
Other comprehensive income (loss) before reclassification adjustments, pretax | 3,902 | -2,075 | -291 | |||
Other comprehensive income (loss), tax | -1,620 | 436 | 247 | |||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 2,282 | -1,639 | -44 | |||
Other comprehensive income (loss), Reclassification adjustments, pretax | 289 | 156 | 227 | |||
Other comprehensive income (loss), Reclassification adjustments, Tax | -86 | -67 | -99 | |||
Other comprehensive income (loss), Reclassification adjustments, net of taxes | 203 | 89 | 128 | |||
Other comprehensive income (loss), net of taxes | 2,485 | -1,550 | 84 | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($2,197) | ($4,682) | ($3,132) | |||
[1] | Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales. | |||||
[2] | Represents net realized gains on the sales of available-for-sale investments that were reclassified from AOCI to Other (income) expense, net. | |||||
[3] | Includes pension plan net loss of $(1.7) billion and $(4.1) billion at December 31, 2013 and 2012, respectively, and other postretirement benefit plan net loss of $(80) million and $(414) million at December 31, 2013 and in 2012, respectively, as well as pension plan prior service credit of $559 million and $449 million at December 31, 2013 and 2012, respectively, and other postretirement benefit plan prior service credit of $331 million and $354 million at December 31, 2013 and 2012. | |||||
[4] | Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 13). |
Other_Comprehensive_Loss_Incom
Other Comprehensive (Loss) Income - Textual (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | ||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Pension and other postretirement benefit plans | ($2,346) | ($909) | [1] | ($3,667) | [1] | ($2,043) |
Cumulative translation gains (losses) relating to translation impact of intangible assets | 392 | ' | ' | ' | ||
Pension plan net loss [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Pension and other postretirement benefit plans | ' | -1,719 | -4,056 | ' | ||
Other postretirement benefit plan net loss [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Pension and other postretirement benefit plans | ' | -80 | -414 | ' | ||
Pension plan prior service cost credit [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Pension and other postretirement benefit plans | ' | 559 | 449 | ' | ||
Other Postretirement Benefit Plan Prior Service Cost [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Pension and other postretirement benefit plans | ' | $331 | $354 | ' | ||
[1] | Includes pension plan net loss of $(1.7) billion and $(4.1) billion at December 31, 2013 and 2012, respectively, and other postretirement benefit plan net loss of $(80) million and $(414) million at December 31, 2013 and in 2012, respectively, as well as pension plan prior service credit of $559 million and $449 million at December 31, 2013 and 2012, respectively, and other postretirement benefit plan prior service credit of $331 million and $354 million at December 31, 2013 and 2012. |
Segment_Reporting_Textual_Deta
Segment Reporting - Textual (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 4 |
Segment_Reporting_Sales_of_Com
Segment Reporting - Sales of Company's Products (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | $44,033 | $47,267 | $48,047 | |||
Revenue for the out-license of a pipeline compound | 50 | ' | ' | |||
Other pharmaceutical [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 4,316 | [1] | 4,333 | [1] | 4,266 | [1] |
Pharmaceutical segment [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 37,437 | 40,601 | 41,289 | |||
Other segments [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 6,325 | [2] | 6,412 | [2] | 6,428 | [2] |
Operating segments [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 43,762 | 47,013 | 47,717 | |||
Other [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 271 | [3] | 254 | [3] | 330 | [3] |
Zetia [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 2,658 | 2,567 | 2,428 | |||
Vytorin [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,643 | 1,747 | 1,882 | |||
Januvia [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 4,004 | 4,086 | 3,324 | |||
Janumet [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,829 | 1,659 | 1,363 | |||
Nasonex [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,335 | 1,268 | 1,286 | |||
Singulair [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,196 | 3,853 | 5,479 | |||
Dulera [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 324 | 207 | 96 | |||
Asmanex [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 184 | 185 | 206 | |||
NuvaRing [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 686 | 623 | 623 | |||
Fosamax [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 560 | 676 | 855 | |||
Follistim AQ [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 481 | 468 | 530 | |||
Implanon [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 403 | 348 | 294 | |||
Cerazette [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 208 | 271 | 268 | |||
Arcoxia [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 484 | 453 | 431 | |||
Avelox [Member] | Primary Care and Women's Health [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 140 | 201 | 322 | |||
Remicade [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 2,271 | 2,076 | 2,667 | |||
Simponi [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 500 | 331 | 264 | |||
Isentress [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,643 | 1,515 | 1,359 | |||
Cancidas [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 660 | 619 | 640 | |||
PegIntron [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 496 | 653 | 657 | |||
Invanz [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 488 | 445 | 406 | |||
Victrelis [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 428 | 502 | 140 | |||
Noxafil [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 309 | 258 | 230 | |||
Temodar [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 708 | 917 | 935 | |||
Emend [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 507 | 489 | 419 | |||
Cosopt/Trusopt [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 416 | 444 | 477 | |||
Bridion [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 288 | 261 | 201 | |||
Integrilin [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 186 | 211 | 230 | |||
Cozaar/Hyzaar [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,006 | 1,284 | 1,663 | |||
Primaxin [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 335 | 384 | 515 | |||
Zocor [Member] | Hospital and Specialty [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 301 | 383 | 456 | |||
Propecia [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 283 | 424 | 447 | |||
Clarinex [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 235 | 393 | 621 | |||
Remeron [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 206 | 232 | 241 | |||
Claritin Rx [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 204 | 244 | 314 | |||
Proscar [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 183 | 217 | 223 | |||
Maxalt [Member] | Diversified Brands [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 149 | 638 | 639 | |||
Gardasil [Member] | Vaccines [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,831 | [4] | 1,631 | [4] | 1,209 | [4] |
ProQuad/M-M-R II/Varivax [Member] | Vaccines [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 1,306 | [4] | 1,273 | [4] | 1,202 | [4] |
Zostavax [Member] | Vaccines [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 758 | [4] | 651 | [4] | 332 | [4] |
Pneumovax 23 [Member] | Vaccines [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | 653 | [4] | 580 | [4] | 498 | [4] |
RotaTeq [Member] | Vaccines [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Sales | $636 | [4] | $601 | [4] | $651 | [4] |
[1] | Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. | |||||
[2] | Represents the non-reportable segments of Animal Health, Consumer Care and Alliances. The Alliances segment includes revenue from the Company’s relationship with AZLP. | |||||
[3] | Other revenues are primarily comprised of miscellaneous corporate revenues, third-party manufacturing sales, sales related to divested products or businesses and other supply sales not included in segment results. On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales (see Note 3). In addition, other revenues in 2013 reflect $50 million of revenue for the out-license of a pipeline compound. | |||||
[4] | These amounts do not reflect sales of vaccines sold in most major European markets through the Company’s joint venture, Sanofi Pasteur MSD, the results of which are reflected in Equity income from affiliates. These amounts do, however, reflect supply sales to Sanofi Pasteur MSD. |
Segment_Reporting_Consolidated
Segment Reporting - Consolidated Revenues by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | $44,033 | $47,267 | $48,047 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 18,246 | 20,392 | 20,495 |
Europe Middle East And Africa [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 13,140 | 12,990 | 13,782 |
Japan [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 4,044 | 5,102 | 4,835 |
Asia Pacific [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 3,845 | 3,775 | 3,496 |
Latin America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | 3,203 | 3,389 | 3,472 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales | $1,555 | $1,619 | $1,967 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Segment Profits to Income Before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income Before Taxes | $5,545 | $8,739 | $7,334 |
Interest income | 264 | 232 | 145 |
Interest expense | -801 | -714 | -695 |
Equity income from affiliates | 404 | 642 | 610 |
Depreciation and amortization | -6,988 | -6,978 | -7,427 |
Research and development | -7,503 | -8,168 | -8,467 |
Restructuring costs | -1,709 | -664 | -1,306 |
Litigation settlement charges | ' | 493 | 500 |
Pharmaceutical segment [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income Before Taxes | 22,983 | 25,852 | 25,617 |
Equity income from affiliates | 88 | 36 | 59 |
Depreciation and amortization | -27 | -25 | -51 |
Other segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income Before Taxes | 3,094 | 3,163 | 2,995 |
Equity income from affiliates | 475 | 504 | 510 |
Depreciation and amortization | -22 | -20 | -20 |
Operating segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income Before Taxes | 26,077 | 29,015 | 28,612 |
Equity income from affiliates | 563 | 540 | 569 |
Depreciation and amortization | -49 | -45 | -71 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Income Before Taxes | 19 | 26 | -11 |
Unallocated [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Interest income | 264 | 232 | 145 |
Interest expense | -801 | -714 | -695 |
Equity income from affiliates | -159 | 102 | 41 |
Depreciation and amortization | -2,250 | -2,059 | -2,412 |
Research and development | -6,381 | -7,126 | -7,251 |
Amortization of purchase accounting adjustments | -4,690 | -4,872 | -5,000 |
Restructuring costs | -1,709 | -664 | -1,306 |
Other unallocated, net | -4,825 | -4,708 | -4,289 |
ENHANCE Litigation [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Litigation settlement charges | -493 | ' | ' |
ENHANCE Litigation [Member] | Unallocated [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Litigation settlement charges | 0 | -493 | 0 |
Arbitration settlement [Member] | Unallocated [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Litigation settlement charges | $0 | $0 | ($500) |
Segment_Reporting_Schedule_of_
Segment Reporting - Schedule of Equity Income from Affiliates and Depreciation and Amortization Included in Segment Profits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity income from affiliates | $404 | $642 | $610 |
Depreciation and amortization | -6,988 | -6,978 | -7,427 |
Pharmaceutical [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity income from affiliates | 88 | 36 | 59 |
Depreciation and amortization | -27 | -25 | -51 |
All Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity income from affiliates | 475 | 504 | 510 |
Depreciation and amortization | -22 | -20 | -20 |
Total [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Equity income from affiliates | 563 | 540 | 569 |
Depreciation and amortization | ($49) | ($45) | ($71) |
Segment_Reporting_Property_Pla
Segment Reporting - Property, Plant and Equipment, Net by Geographic Area (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | $14,973 | $16,030 | $16,297 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 10,076 | 10,687 | 10,826 |
Europe Middle East And Africa [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 3,346 | 3,688 | 3,780 |
Asia Pacific [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 1,001 | 1,059 | 1,064 |
Latin America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 242 | 250 | 234 |
Japan [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | 211 | 243 | 279 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Net | $97 | $103 | $114 |