Merck & Co. (MRK) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	MRK
Entity Registrant Name	Merck & Co., Inc.
Entity Central Index Key	310,158
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		2,727,354,340

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Sales	$ 9,930	$ 9,844	$ 19,365	$ 19,156
Costs, Expenses and Other
Materials and production	3,080	3,578	6,095	7,150
Marketing and administrative	2,438	2,458	4,849	4,776
Research and development	1,749	2,151	3,545	3,810
Restructuring costs	166	134	317	225
Other (income) expense, net	58	19	117	67
Total Costs, Expenses and Other	7,491	8,340	14,923	16,028
Income Before Taxes	2,439	1,504	4,442	3,128
Taxes on Income	488	295	935	789
Net Income	1,951	1,209	3,507	2,339
Less: Net Income Attributable to Noncontrolling Interests	5	4	11	9
Net Income Attributable to Merck & Co., Inc.	$ 1,946	$ 1,205	$ 3,496	$ 2,330
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ 0.71	$ 0.44	$ 1.28	$ 0.84
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	0.71	0.43	1.27	0.83
Dividends Declared per Common Share (in dollars per share)	$ 0.47	$ 0.46	$ 0.94	$ 0.92

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income Attributable to Merck & Co., Inc.	$ 1,946	$ 1,205	$ 3,496	$ 2,330
Other Comprehensive Income (Loss) Net of Taxes:
Net unrealized loss on derivatives, net of reclassifications	(143)	(91)	(375)	(293)
Net unrealized gain on investments, net of reclassifications	35	63	78	126
Benefit plan net gain (loss) and prior service credit (cost), net of amortization	47	(108)	73	(136)
Cumulative translation adjustment	47	244	356	365
Other comprehensive income (loss), net of taxes	(14)	108	132	62
Comprehensive Income Attributable to Merck & Co., Inc.	$ 1,932	$ 1,313	$ 3,628	$ 2,392

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 7,786	$ 6,515
Short-term investments	4,181	7,826
Accounts receivable (net of allowance for doubtful accounts of $200 in 2017 and $195 in 2016)	7,439	7,018
Inventories (excludes inventories of $1,076 in 2017 and $1,117 in 2016 classified in Other assets - see Note 5)	5,407	4,866
Other current assets	3,354	4,389
Total current assets	28,167	30,614
Investments	12,138	11,416
Property, Plant and Equipment, at cost, net of accumulated depreciation of $16,375 in 2017 and $15,749 in 2016	12,094	12,026
Goodwill	18,358	18,162
Other Intangibles, Net	16,119	17,305
Other Assets	5,928	5,854
Total Assets	92,804	95,377
Current Liabilities
Loans payable and current portion of long-term debt	3,181	568
Trade accounts payable	2,934	2,807
Accrued and other current liabilities	9,363	10,274
Income taxes payable	1,979	2,239
Dividends payable	1,301	1,316
Total current liabilities	18,758	17,204
Long-Term Debt	21,706	24,274
Deferred Income Taxes	4,560	5,077
Other Noncurrent Liabilities	8,068	8,514
Merck & Co., Inc. Stockholders’ Equity
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2017 and 2016	1,788	1,788
Other paid-in capital	39,776	39,939
Retained earnings	45,046	44,133
Accumulated other comprehensive loss	(5,094)	(5,226)
Stockholders' equity before deduction for treasury stock	81,516	80,634
Less treasury stock, at cost: 849,974,743 shares in 2017 and 828,372,200 shares in 2016	42,053	40,546
Total Merck & Co., Inc. stockholders’ equity	39,463	40,088
Noncontrolling Interests	249	220
Total equity	39,712	40,308
Liabilities and Equity	$ 92,804	$ 95,377

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 200	$ 195
Inventories classified in Other assets	1,076	1,117
Accumulated depreciation	$ 16,375	$ 15,749
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (shares)	6,500,000,000	6,500,000,000
Common stock, shares issued (in shares)	3,577,103,522	3,577,103,522
Treasury stock, shares (shares)	849,974,743	828,372,200

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities
Net income	$ 3,507	$ 2,339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,355	3,111
Intangible asset impairment charges	131	567
Deferred income taxes	(272)	(120)
Share-based compensation	156	148
Other	63	166
Net changes in assets and liabilities	(2,337)	(2,438)
Net Cash Provided by Operating Activities	3,603	3,773
Cash Flows from Investing Activities
Capital expenditures	(732)	(654)
Purchases of securities and other investments	(6,280)	(6,355)
Proceeds from sales of securities and other investments	9,363	7,388
Acquisitions of businesses, net of cash acquired	(347)	(157)
Other	62	21
Net Cash Provided by Investing Activities	2,066	243
Cash Flows from Financing Activities
Net change in short-term borrowings	(24)	(9)
Payments on debt	(301)	(2,351)
Purchases of treasury stock	(2,153)	(1,573)
Dividends paid to stockholders	(2,601)	(2,579)
Proceeds from exercise of stock options	408	381
Other	(86)	(101)
Net Cash Used in Financing Activities	(4,757)	(6,232)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	359	300
Net Increase (Decrease) in Cash and Cash Equivalents	1,271	(1,916)
Cash and Cash Equivalents at Beginning of Year	6,515	8,524
Cash and Cash Equivalents at End of Period	$ 7,786	$ 6,608

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Merck & Co., Inc. (Merck or the Company) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by accounting principles generally accepted in the United States for complete consolidated financial statements are not included herein. These interim statements should be read in conjunction with the audited financial statements and notes thereto included in Merck’s Form 10-K filed on February 28, 2017. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. In the Company’s opinion, all adjustments necessary for a fair statement of these interim statements have been included and are of a normal and recurring nature. Certain reclassifications have been made to prior year amounts to conform to the current presentation. On December 31, 2016, Merck and Sanofi Pasteur S.A. (Sanofi) terminated their equally-owned joint venture, Sanofi Pasteur MSD (SPMSD), which developed and marketed vaccines in Europe. Beginning in 2017, Merck is recording vaccine sales and incurring costs as a result of operating its vaccines business in the European markets that were previously part of the SPSMD joint venture, which was accounted for as an equity method affiliate. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued amended accounting guidance on revenue recognition that will be applied to all contracts with customers. The objective of the new guidance is to improve comparability of revenue recognition practices across entities and to provide more useful information to users of financial statements through improved disclosure requirements. The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of adopting the guidance being recognized at the date of initial application (modified retrospective method). The Company will adopt the new standard on January 1, 2018 and currently plans to use the modified retrospective method. The majority of the Company’s business is ship and bill and, on that primary revenue stream, Merck does not expect significant differences. Additionally, the Company has not identified significant changes related to the recognition of revenue for its multiple element arrangements or discount and trade promotion programs when applying the new guidance. However, the Company’s analysis is preliminary and subject to change. In January 2016, the FASB issued revised guidance for the accounting and reporting of financial instruments. The new guidance requires that equity investments with readily determinable fair values currently classified as available-for-sale be measured at fair value with changes in fair value recognized in net income. The new guidance also simplifies the impairment testing of equity investments without readily determinable fair values and changes certain disclosure requirements. This guidance is effective for interim and annual periods beginning in 2018. Early adoption is not permitted. The Company is currently assessing the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued guidance on the classification of certain cash receipts and payments in the statement of cash flows intended to reduce diversity in practice. The guidance is effective for interim and annual periods beginning in 2018. Early adoption is permitted. The guidance is to be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company is currently evaluating the effect of the standard on its Consolidated Statement of Cash Flows. In October 2016, the FASB issued guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under existing guidance, the recognition of current and deferred income taxes for an intra-entity asset transfer is prohibited until the asset has been sold to a third party. The new guidance will require the recognition of the income tax consequences of an intra-entity transfer of an asset (with the exception of inventory) when the intra-entity transfer occurs. The guidance is effective for interim and annual periods beginning in 2018. The new guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings in the beginning of the period of adoption. The Company does not anticipate the adoption of the new guidance will have a material effect on its consolidated financial statements. In November 2016, the FASB issued guidance requiring that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning in 2018 and should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company is currently evaluating the effect of the standard on its Consolidated Statement of Cash Flows. In March 2017, the FASB amended the guidance related to net periodic benefit cost for defined benefit plans that requires entities to (1) disaggregate the current service cost component from the other components of net benefit cost and present it with other employee compensation costs in the income statement within operations if such a subtotal is presented; (2) present the other components of net benefit cost separately in the income statement and outside of income from operations; and (3) only capitalize the service cost component when applicable. The new guidance is effective for interim and annual periods in 2018. Entities must use a retrospective transition method to adopt the requirement for separate presentation in the income statement of service costs and other components and a prospective transition method to adopt the requirement to limit the capitalization of benefit costs to the service cost component. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In May 2017, the FASB issued guidance clarifying when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance is effective prospectively for interim and annual periods beginning in 2018. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued new accounting guidance for the accounting and reporting of leases. The new guidance requires that lessees recognize a right-of-use asset and a lease liability recorded on the balance sheet for each of its leases (other than leases that meet the definition of a short-term lease). Leases will be classified as either operating or finance. Operating leases will result in straight-line expense in the income statement (similar to current operating leases) while finance leases will result in more expense being recognized in the earlier years of the lease term (similar to current capital leases). The new guidance will be effective for interim and annual periods beginning in 2019. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued amended guidance on the accounting for credit losses on financial instruments. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for interim and annual periods beginning in 2020, with earlier application permitted in 2019. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued guidance that provides for the elimination of Step 2 from the goodwill impairment test. Under the new guidance, impairment charges are recognized to the extent the carrying amount of a reporting unit exceeds its fair value with certain limitations. The new guidance is effective for interim and annual periods in 2020. Early adoption is permitted. The Company does not anticipate the adoption of the new guidance will have a material effect on its consolidated financial statements.

Acquisitions, Divestitures, Res

Acquisitions, Divestitures, Research Collaborations and License Agreements	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions, Divestitures, Research Collaborations and License Agreements	Acquisitions, Divestitures, Research Collaborations and License Agreements The Company continues to pursue the acquisition of businesses and establishment of external alliances such as research collaborations and licensing agreements to complement its internal research capabilities. These arrangements often include upfront payments, as well as expense reimbursements or payments to the third party, and milestone, royalty or profit share arrangements, contingent upon the occurrence of certain future events linked to the success of the asset in development. The Company also reviews its marketed products and pipeline to examine candidates which may provide more value through out-licensing and, as part of its portfolio assessment process, may also divest certain assets. Pro forma financial information for acquired businesses is not presented if the historical financial results of the acquired entity are not significant when compared with the Company’s financial results. In July 2017, Merck and AstraZeneca entered a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca’s Lynparza (olaparib) for multiple cancer types. Lynparza is an oral, poly (ADP-ribose) polymerase (PARP) inhibitor currently approved for BRCA-mutated ovarian cancer in multiple lines of treatment. The companies will develop and commercialize Lynparza, both as monotherapy and in combination trials with other potential medicines. Independently, Merck and AstraZeneca will develop and commercialize Lynparza in combinations with their respective PD-1 and PD-L1 medicines, Keytruda (pembrolizumab) and Imfinzi (durvalumab). The companies will also jointly develop and commercialize AstraZeneca’s selumetinib, an oral, potent, selective inhibitor of MEK, part of the mitogen-activated protein kinase (MAPK) pathway, currently being developed for multiple indications including thyroid cancer. Under the terms of the agreement, AstraZeneca and Merck will share the development and commercialization costs for Lynparza and selumetinib monotherapy and non-PD-L1/PD-1 combination therapy opportunities. Gross profits from Lynparza and selumetinib product sales generated through monotherapies or combination therapies will be shared equally. Merck will fund all development and commercialization costs of Keytruda in combination with Lynparza or selumetinib. AstraZeneca will fund all development and commercialization costs of Imfinzi in combination with Lynparza or selumetinib. As part of the agreement, Merck will make an upfront payment to AstraZeneca of $1.6 billion and will make payments of $750 million over a multi-year period for certain license options. The Company will record an aggregate charge of $2.35 billion in Research and development expenses in the third quarter of 2017 related to these payments. In addition, Merck will pay AstraZeneca up to an additional $6.15 billion contingent upon successful achievement of future regulatory and sales milestones for total aggregate consideration of up to $8.5 billion . Future milestone payments will be capitalized and amortized over the estimated useful life of the corresponding intangible asset. Additionally, Merck will record its share of product sales of Lynparza and selumetinib, net of commercialization costs, as alliance revenue within the Pharmaceutical segment and its share of development costs associated with the collaboration as part of Research and development expenses. Merck may terminate the agreement in its entirety or with respect to a given compound (and all products comprising such compound) upon prior written notice to AstraZeneca of at least 180 days. If the agreement is terminated with respect to a given compound, the agreement shall remain in full force and effect with respect to the other compounds. The parties also have the right to terminate the agreement in its entirety or on a product-by-product or country-by-country basis upon mutual written agreement. The agreement may also be terminated at any time with respect to a given product, upon written notice by a party if the other party is in material breach of the agreement with respect to such product and has not cured such breach within the time periods provided for under the agreement. In March 2017, Merck acquired a controlling interest in Vallée S.A. (Vallée), a leading privately held producer of animal health products in Brazil. Vallée has an extensive portfolio of products spanning parasiticides, anti-infectives and vaccines that include products for livestock, horses, and companion animals. Under the terms of the agreement, Merck acquired 93.5% of the shares of Vallée for $358 million . Of the total purchase price, $176 million was placed into escrow pending resolution of certain contingent items. The transaction was accounted for as an acquisition of a business. Merck recognized intangible assets of $297 million related to currently marketed products, net deferred tax liabilities of $95 million , other net assets of $1 million and noncontrolling interest of $25 million . In addition, the Company recorded liabilities of $37 million for contingencies identified at the acquisition date and corresponding indemnification assets of $37 million , representing the amounts to be reimbursed to Merck if and when the contingent liabilities are paid. The excess of the consideration transferred over the fair value of net assets acquired of $180 million was recorded as goodwill. The goodwill was allocated to the Animal Health segment and is not deductible for tax purposes. The estimated fair values of identifiable intangible assets related to currently marketed products were determined using an income approach through which fair value is estimated based on market participant expectations of each asset’s discounted projected net cash flows. The probability-adjusted future net cash flows of each product were then discounted to present value utilizing a discount rate of 15.5% . Actual cash flows are likely to be different than those assumed. The intangible assets related to currently marketed products are being amortized over their estimated useful lives of 15 years. In June 2016, Merck and Moderna Therapeutics (Moderna) entered into a strategic collaboration and license agreement to develop and commercialize novel messenger RNA (mRNA)-based personalized cancer vaccines. The development program will entail multiple studies in several types of cancer and include the evaluation of mRNA-based personalized cancer vaccines in combination with Merck’s Keytruda . Pursuant to the terms of the agreement, Merck made an upfront cash payment to Moderna of $200 million in July of 2016, which was accrued for and recorded in Research and development expenses in the second quarter of 2016. Following human proof of concept studies, Merck has the right to elect to make an additional payment to Moderna. If Merck exercises this right, the two companies will then equally share cost and profits under a worldwide collaboration for the development of personalized cancer vaccines. Moderna will have the right to elect to co-promote the personalized cancer vaccines in the United States. The agreement entails exclusivity around combinations with Keytruda . Moderna and Merck each have the ability to combine mRNA-based personalized cancer vaccines with other (non-PD-1) agents. In January 2016, Merck acquired IOmet Pharma Ltd (IOmet), a privately held UK-based drug discovery company focused on the development of innovative medicines for the treatment of cancer, with a particular emphasis on the fields of cancer immunotherapy and cancer metabolism. The acquisition provides Merck with IOmet’s preclinical pipeline of IDO (indoleamine-2,3-dioxygenase 1), TDO (tryptophan-2,3-dioxygenase), and dual-acting IDO/TDO inhibitors. The transaction was accounted for as an acquisition of a business. Total purchase consideration in the transaction included a cash payment of $150 million and future additional milestone payments of up to $250 million contingent upon certain clinical and regulatory milestones being achieved. The Company determined the fair value of the contingent consideration was $94 million at the acquisition date utilizing a probability-weighted estimated cash flow stream adjusted for the expected timing of each payment utilizing a discount rate of 10.5% . Merck recognized intangible assets for in-process research and development (IPR&D) of $155 million and net deferred tax assets of $32 million . The excess of the consideration transferred over the fair value of net assets acquired of $57 million was recorded as goodwill that was allocated to the Pharmaceutical segment and is not deductible for tax purposes. The fair values of the identifiable intangible assets related to IPR&D were determined using an income approach. The assets’ probability-adjusted future net cash flows were then discounted to present value also using a discount rate of 10.5% . Actual cash flows are likely to be different than those assumed. In July 2017, Merck made a $100 million payment as a result of the achievement of a clinical milestone, which was accrued for at estimated fair value at the time of acquisition as noted above. Additionally, in January 2016, Merck sold the U.S. marketing rights to Cortrophin and Corticotropin Zinc Hydroxide to ANI Pharmaceuticals, Inc. (ANI). Under the terms of the agreement, ANI made a payment of $75 million , which was recorded in Sales in the first six months of 2016, and may make additional payments to the Company based on future sales. Merck does not have any ongoing supply or other performance obligations after the closing date.

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring The Company incurs substantial costs for restructuring program activities related to Merck’s productivity and cost reduction initiatives, as well as in connection with the integration of certain acquired businesses. In 2010 and 2013, the Company commenced actions under global restructuring programs designed to streamline its cost structure. The actions under these programs include the elimination of positions in sales, administrative and headquarters organizations, as well as the sale or closure of certain manufacturing and research and development sites and the consolidation of office facilities. The Company also continues to reduce its global real estate footprint and improve the efficiency of its manufacturing and supply network. The non-facility related restructuring actions under these programs are substantially complete; the remaining activities primarily relate to ongoing facility rationalizations. The Company recorded total pretax costs of $210 million and $351 million in the second quarter of 2017 and 2016 , respectively, and $425 million and $547 million for the first six months of 2017 and 2016 , respectively, related to restructuring program activities. Since inception of the programs through June 30, 2017 , Merck has recorded total pretax accumulated costs of approximately $13.0 billion and eliminated approximately 41,920 positions comprised of employee separations, as well as the elimination of contractors and vacant positions. The Company expects to substantially complete the remaining actions under these programs by the end of 2017 and incur approximately $300 million of additional pretax costs. The Company estimates that approximately two-thirds of the cumulative pretax costs will result in cash outlays, primarily related to employee separation expense. Approximately one-third of the cumulative pretax costs are non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. For segment reporting, restructuring charges are unallocated expenses. The following tables summarize the charges related to restructuring program activities by type of cost: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Materials and production $ — $ (4 ) $ 37 $ 33 $ — $ 47 $ 49 $ 96 Marketing and administrative — 2 — 2 — 2 1 3 Research and development — 8 1 9 — 6 3 9 Restructuring costs 118 — 48 166 202 — 115 317 $ 118 $ 6 $ 86 $ 210 $ 202 $ 55 $ 168 $ 425 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Materials and production $ — $ 29 $ 37 $ 66 $ — $ 51 $ 62 $ 113 Marketing and administrative — 4 83 87 — 7 83 90 Research and development — 64 — 64 — 119 — 119 Restructuring costs 85 — 49 134 111 — 114 225 $ 85 $ 97 $ 169 $ 351 $ 111 $ 177 $ 259 $ 547 Separation costs are associated with actual headcount reductions, as well as those headcount reductions which were probable and could be reasonably estimated. In the second quarter of 2017 and 2016 , approximately 475 positions and 585 positions, respectively, and for the first six months of 2017 and 2016 , approximately 1,020 positions and 1,055 positions, respectively, were eliminated under restructuring program activities. 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 asset, based upon the anticipated date the site will be closed or divested or the equipment disposed of, 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 is recording accelerated depreciation over the revised useful life of the site assets. 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 2017 and 2016 includes asset abandonment, shut-down and other related costs, as well as pretax gains and losses resulting from sales of facilities and related assets. Additionally, other activity includes certain employee-related costs associated with pension and other postretirement benefit plans (see Note 10) and share-based compensation. The following table summarizes the charges and spending relating to restructuring program activities for the six months ended June 30, 2017 : ($ in millions) Separation Costs Accelerated Depreciation Other Total Restructuring reserves January 1, 2017 $ 395 $ — $ 146 $ 541 Expense 202 55 168 425 (Payments) receipts, net (167 ) — (234 ) (401 ) Non-cash activity — (55 ) 50 (5 ) Restructuring reserves June 30, 2017 (1) $ 430 $ — $ 130 $ 560 (1) The remaining cash outlays are expected to be substantially completed by the end of 2017.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2017
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 variability caused by changes in foreign exchange rates that would affect 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 (forecasted sales) that are expected to occur over its planning cycle, typically no more than two years into the future. The Company will layer in hedges over time, increasing the portion of forecasted sales hedged as it gets closer to the expected date of the forecasted sales. The portion of forecasted 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 Company manages its anticipated transaction exposure principally with purchased local currency put options, forward contracts and purchased collar options. The fair values of these derivative contracts are recorded as either assets (gain positions) or liabilities (loss positions) in the Condensed Consolidated Balance Sheet. Changes in the fair value of derivative contracts are recorded each period in either current earnings or Other comprehensive income ( 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 Accumulated other comprehensive income ( 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 Condensed Consolidated Statement of Cash Flows. The Company does not enter into derivatives for trading or speculative purposes. The Company manages operating activities and net asset positions at each local subsidiary in order to mitigate the effects of exchange on monetary assets and liabilities. The Company also uses a balance sheet risk management program to mitigate the exposure of net monetary assets that are denominated in a currency other than a subsidiary’s functional currency from the effects of volatility in foreign exchange. In these instances, Merck principally utilizes forward exchange 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 cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows. 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 may also use 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 that are recorded in Other (income) expense, net . 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 Condensed 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 $339 million and $29 million for the first six months of 2017 and 2016 , respectively, from the euro-denominated notes. Interest Rate Risk Management The Company may use interest rate swap contracts on certain investing and borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. The Company does not use leveraged swaps and, in general, does not leverage any of its investment activities that would put principal capital at risk. At June 30, 2017 , the Company was a party to 26 pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes as detailed in the table below. ($ in millions) June 30, 2017 Debt Instrument Par Value of Debt Number of Interest Rate Swaps Held Total Swap Notional Amount 1.30% notes due 2018 $ 1,000 4 $ 1,000 5.00% notes due 2019 1,250 3 550 1.85% notes due 2020 1,250 5 1,250 3.875% notes due 2021 1,150 5 1,150 2.40% notes due 2022 1,000 4 1,000 2.35% notes due 2022 1,250 5 1,250 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 swap rate 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 Condensed 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: June 30, 2017 December 31, 2016 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional ($ in millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments Interest rate swap contracts Other assets $ 21 $ — $ 2,700 $ 20 $ — $ 2,700 Interest rate swap contracts Accrued and other current liabilities — 4 1,000 — — — Interest rate swap contracts Other noncurrent liabilities — 19 2,500 — 29 3,500 Foreign exchange contracts Other current assets 154 — 4,223 616 — 6,063 Foreign exchange contracts Other assets 31 — 1,388 129 — 2,075 Foreign exchange contracts Accrued and other current liabilities — 58 1,692 — 1 48 Foreign exchange contracts Other noncurrent liabilities — — — — 1 12 $ 206 $ 81 $ 13,503 $ 765 $ 31 $ 14,398 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Other current assets $ 134 $ — $ 5,586 $ 230 $ — $ 8,210 Foreign exchange contracts Accrued and other current liabilities — 120 5,807 — 103 2,931 $ 134 $ 120 $ 11,393 $ 230 $ 103 $ 11,141 $ 340 $ 201 $ 24,896 $ 995 $ 134 $ 25,539 As noted above, the Company records its derivatives on a gross basis in the Condensed 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: June 30, 2017 December 31, 2016 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 340 $ 201 $ 995 $ 134 Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet (132 ) (132 ) (131 ) (131 ) Cash collateral received (65 ) — (529 ) — Net amounts $ 143 $ 69 $ 335 $ 3 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 and (iii) not designated in a hedging relationship: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Derivatives designated in a fair value hedging relationship Interest rate swap contracts Amount of gain recognized in Other (income) expense, net on derivatives (1) $ (22 ) $ (48 ) $ (7 ) $ (198 ) Amount of loss recognized in Other (income) expense, net on hedged item (1) 20 47 4 194 Derivatives designated in foreign currency cash flow hedging relationships Foreign exchange contracts Amount of gain reclassified from AOCI to Sales (49 ) (65 ) (144 ) (207 ) Amount of loss recognized in OCI on derivatives 169 75 432 242 Derivatives not designated in a hedging relationship Foreign exchange contracts Amount of gain recognized in Other (income) expense, net on derivatives (2) (3 ) (140 ) (49 ) (116 ) (1) There was $2 million and $1 million of ineffectiveness on the hedge during the second quarter of 2017 and 2016 , respectively, and $3 million and $4 million , respectively, of ineffectiveness on the hedge during the first six months of 2017 and 2016 , respectively. (2) 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 June 30, 2017 , the Company estimates $50 million of pretax net unrealized losses on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCI to Sales . The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity. Investments in Debt and Equity Securities Information on investments in debt and equity securities is as follows: June 30, 2017 December 31, 2016 Fair Value Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized ($ in millions) Gains Losses Gains Losses Corporate notes and bonds $ 10,469 $ 10,460 $ 28 $ (19 ) $ 10,577 $ 10,601 $ 15 $ (39 ) U.S. government and agency securities 2,009 2,018 — (9 ) 2,232 2,244 1 (13 ) Commercial paper 1,607 1,607 — — 4,330 4,330 — — Asset-backed securities 1,399 1,399 2 (2 ) 1,376 1,380 1 (5 ) Mortgage-backed securities 710 714 1 (5 ) 796 801 1 (6 ) Foreign government bonds 569 571 — (2 ) 519 521 — (2 ) Equity securities 376 285 92 (1 ) 349 281 71 (3 ) $ 17,139 $ 17,054 $ 123 $ (38 ) $ 20,179 $ 20,158 $ 89 $ (68 ) Available-for-sale debt securities included in Short-term investments totaled $4.2 billion at June 30, 2017 . Of the remaining debt securities, $10.8 billion mature within five years. At June 30, 2017 and December 31, 2016 , 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 or liabilities are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as assets or liabilities 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 are summarized below: Fair Value Measurements Using Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in millions) June 30, 2017 December 31, 2016 Assets Investments Corporate notes and bonds $ — $ 10,305 $ — $ 10,305 $ — $ 10,389 $ — $ 10,389 U.S. government and agency securities 67 1,649 — 1,716 29 1,890 — 1,919 Commercial paper — 1,607 — 1,607 — 4,330 — 4,330 Asset-backed securities (1) — 1,314 — 1,314 — 1,257 — 1,257 Mortgage-backed securities (1) — 596 — 596 — 628 — 628 Foreign government bonds — 568 — 568 — 518 — 518 Equity securities 213 — — 213 201 — — 201 280 16,039 — 16,319 230 19,012 — 19,242 Other assets U.S. government and agency securities — 293 — 293 — 313 — 313 Corporate notes and bonds — 164 — 164 — 188 — 188 Mortgage-backed securities (1) — 114 — 114 — 168 — 168 Asset-backed securities (1) — 85 — 85 — 119 — 119 Foreign government bonds — 1 — 1 — 1 — 1 Equity securities 163 — — 163 148 — — 148 163 657 — 820 148 789 — 937 Derivative assets (2) Purchased currency options — 180 — 180 — 644 — 644 Forward exchange contracts — 139 — 139 — 331 — 331 Interest rate swaps — 21 — 21 — 20 — 20 — 340 — 340 — 995 — 995 Total assets $ 443 $ 17,036 $ — $ 17,479 $ 378 $ 20,796 $ — $ 21,174 Liabilities Other liabilities Contingent consideration $ — $ — $ 1,002 $ 1,002 $ — $ — $ 891 $ 891 Derivative liabilities (2) Forward exchange contracts — 178 — 178 — 93 — 93 Interest rate swaps — 23 — 23 — 29 — 29 Written currency options — — — — — 12 — 12 — 201 — 201 — 134 — 134 Total liabilities $ — $ 201 $ 1,002 $ 1,203 $ — $ 134 $ 891 $ 1,025 (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 auto loan, credit card and student loan 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 the first six months of 2017 . As of June 30, 2017 , Cash and cash equivalents of $7.8 billion included $6.7 billion of cash equivalents (which would be considered Level 2 in the fair value hierarchy). Contingent Consideration Summarized information about the changes in liabilities for contingent consideration is as follows: Six Months Ended June 30, ($ in millions) 2017 2016 Fair value January 1 $ 891 $ 590 Changes in fair value (1) 108 19 Additions 3 77 Payments — (25 ) Fair value June 30 (2) $ 1,002 $ 661 (1) Recorded in Research and development expenses, Materials and production costs and Other (income) expense, net . Includes cumulative translation adjustments. (2) Amount at June 30, 2017, includes $308 million recorded as a current liability for amounts expected to be paid within the next 12 months, including $100 million related to the acquisition of IOmet (see Note 2). The additions to contingent consideration in the first six months of 2016 relate to the acquisition of IOmet (see Note 2). The payments of contingent consideration in the first six months of 2016 relate to the first commercial sale of Zerbaxa in the European Union. 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 June 30, 2017 , was $26.0 billion compared with a carrying value of $24.9 billion and at December 31, 2016 , was $25.7 billion compared with a carrying value of $24.8 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. 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. At June 30, 2017 , the Company’s total net accounts receivable outstanding for more than one year were approximately $160 million . 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. 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 June 30, 2017 and December 31, 2016 , the Company had received cash collateral of $65 million and $529 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 June 30, 2017 or December 31, 2016 .

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of: ($ in millions) June 30, 2017 December 31, 2016 Finished goods $ 1,396 $ 1,304 Raw materials and work in process 4,654 4,222 Supplies 175 155 Total (approximates current cost) 6,225 5,681 Increase to LIFO costs 258 302 $ 6,483 $ 5,983 Recognized as: Inventories $ 5,407 $ 4,866 Other assets 1,076 1,117 Amounts recognized as Other assets are comprised almost entirely of raw materials and work in process inventories. At June 30, 2017 and December 31, 2016 , these amounts included $1.0 billion of inventories not expected to be sold within one year. In addition, these amounts included $80 million at June 30, 2017 and December 31, 2016 of inventories produced in preparation for product launches.

Other Intangibles

Other Intangibles	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangibles	Other Intangibles In connection with acquisitions, the Company measures the fair value of marketed products and research and development pipeline programs and capitalizes these amounts. See Note 2 for information on intangible assets acquired as a result of business acquisitions in the first six months of 2017 and 2016. During the second quarter and first six months of 2017, the Company recorded an intangible asset impairment charge of $47 million within Materials and production costs related to Intron A , a treatment for certain types of cancers. Sales of Intron A are being adversely affected by the availability of new therapeutic options. During the second quarter, sales of Intron A in the United States eroded more rapidly than previously anticipated by the Company, which led to changes in the cash flow assumptions for Intron A. These revisions to cash flows indicated that the Intron A intangible asset value was not fully 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 Intron A that, when compared with its related carrying value, resulted in the impairment charge noted above. The remaining intangible asset value for Intron A at June 30, 2017 was $25 million . During the second quarter and first six months of 2016, the Company recorded intangible asset impairment charges of $95 million and $347 million , respectively. During the second quarter of 2016, the Company wrote off amounts that had been capitalized in connection with in-licensed products that, for business reasons, the Company returned to the licensor. The remaining impairment charges of $252 million in the first six months of 2016 related to Zontivity , a product for the reduction of thrombotic cardiovascular events in patients with a history of myocardial infarction or with peripheral arterial disease. In March 2016, following several business decisions that reduced sales expectations for Zontivity in the United States and Europe, the Company lowered its cash flow projections for Zontivity . The Company utilized market participant assumptions and considered several different scenarios to determine the fair value of the intangible asset related to Zontivity that, when compared with its related carrying value, resulted in the impairment charge noted above. Also, during the second quarter and first six months of 2016, the Company recorded $195 million and $220 million , respectively, of IPR&D impairment charges within Research and development expenses. Of these amounts, $112 million related to an in-licensed program that, for business reasons, was returned to the licensor. The remaining IPR&D impairment charges primarily related to deprioritized pipeline programs that were deemed to have no alternative use during the period. 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.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies 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 certain additional matters including environmental matters. 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 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 most product liabilities effective August 1, 2004. Product Liability Litigation Fosamax As previously disclosed, Merck is a defendant in product liability lawsuits in the United States involving Fosamax ( Fosamax Litigation). As of June 30, 2017 , approximately 4,180 cases are filed and pending against Merck in either federal or state court. In approximately 15 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 4,165 of these actions generally allege that they sustained femur fractures and/or other bone injuries (Femur Fractures) in association with the use of Fosamax . 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 ( Fosamax ONJ MDL) for coordinated pre-trial proceedings. In December 2013, Merck reached an agreement in principle with the Plaintiffs’ Steering Committee (PSC) in the Fosamax ONJ MDL 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 . Merck and the PSC subsequently formalized the terms of this agreement in a Master Settlement Agreement (ONJ Master Settlement Agreement) that was executed in April 2014 and included over 1,200 plaintiffs. In July 2014, Merck elected to proceed with the ONJ Master Settlement Agreement at a reduced funding level of $27.3 million since the participation level was approximately 95% . Merck has fully funded the ONJ Master Settlement Agreement and the escrow agent under the agreement has been making settlement payments to qualifying plaintiffs. The ONJ Master Settlement Agreement has no effect on the cases alleging Femur Fractures discussed below. Discovery is currently ongoing in some of the approximately 15 remaining ONJ cases that are pending in various federal and state courts and the Company intends to defend against these lawsuits. 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 (Femur Fracture MDL). In the only bellwether case tried to date in the Femur Fracture MDL, Glynn v. Merck , the jury returned a verdict in Merck’s favor. In addition, in June 2013, the Femur Fracture MDL court 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. The Glynn decision was not appealed by plaintiff. In August 2013, the Femur Fracture MDL court entered an order requiring plaintiffs in the 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. Pursuant to the show cause order, in March 2014, the Femur Fracture MDL court dismissed with prejudice approximately 650 cases on preemption grounds. Plaintiffs in approximately 515 of those cases appealed that decision to the U.S. Court of Appeals for the Third Circuit (Third Circuit). The Femur Fracture MDL court also dismissed without prejudice another approximately 540 cases pending plaintiffs’ appeal of the preemption ruling to the Third Circuit. On March 22, 2017, the Third Circuit issued a decision reversing the Femur Fracture MDL court’s preemption ruling and remanding the appealed cases back to the Femur Fracture MDL court. On April 5, 2017, Merck filed a petition seeking a rehearing on the Third Circuit’s March 22, 2017 decision, which was denied on April 24, 2017. The deadline for Merck to file a petition for a writ of certiorari to the U.S. Supreme Court is August 22, 2017. In addition, in June 2014, the Femur Fracture MDL court granted Merck summary judgment in the Gaynor v. Merck case and found that Merck’s updates in January 2011 to the Fosamax label regarding atypical femur fractures were adequate as a matter of law and that Merck adequately communicated those changes. The plaintiffs in Gaynor did not appeal the Femur Fracture MDL court’s findings with respect to the adequacy of the 2011 label change but did appeal the dismissal of their case based on preemption grounds, and the Third Circuit subsequently reversed that dismissal in its March 22, 2017 decision. In August 2014, Merck filed a motion requesting that the Femur Fracture MDL court enter a further order requiring all plaintiffs in the Femur Fracture MDL who claim that the 2011 Fosamax label is inadequate and the proximate cause of their alleged injuries to show cause why their cases should not be dismissed based on the court’s preemption decision and its ruling in the Gaynor case. In November 2014, the court granted Merck’s motion and entered the requested show cause order. No plaintiffs responded to or appealed the November 2014 show cause order. As of June 30, 2017 , approximately 520 cases were pending in the Femur Fracture MDL following the reinstatement of the cases that had been on appeal to the Third Circuit. The 540 cases dismissed without prejudice that were also pending the final resolution of the aforementioned appeal have not yet been reinstated. As of June 30, 2017 , approximately 2,820 cases alleging Femur Fractures have been filed in New Jersey state court and are pending before Judge James Hyland in Middlesex County. The parties selected an initial group of 30 cases to be reviewed through fact discovery. Two additional groups of 50 cases each to be reviewed through fact discovery were selected in November 2013 and March 2014, respectively. A further group of 25 cases to be reviewed through fact discovery was selected by Merck in July 2015, and Merck has continued to select additional cases to be reviewed through fact discovery during 2016 and 2017. As of June 30, 2017 , approximately 280 cases alleging Femur Fractures have been filed and are pending 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 Thierry Colaw is currently presiding over the coordinated proceedings. In March 2014, the court directed that a group of 10 discovery pool cases be reviewed through fact discovery and subsequently scheduled the Galper v. Merck case, which plaintiffs selected, as the first trial. The Galper trial began in February 2015 and the jury returned a verdict in Merck’s favor in April 2015, and plaintiff appealed that verdict to the California appellate court. Oral argument on plaintiff’s appeal in Galper was held in November 2016 and, on April 24, 2017, the California appellate court issued a decision affirming the lower court’s judgment in favor of Merck. The next Femur Fracture trial in California that was scheduled to begin in April 2016 was stayed at plaintiffs’ request and a new trial date has not been set. Additionally, there are five Femur Fracture cases pending in other state courts. Discovery is ongoing in the 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 June 30, 2017 , Merck is aware of approximately 1,215 product user claims alleging generally that use of Januvia and/or Janumet caused the development of pancreatic cancer and other injuries. These complaints were filed in several different state and federal courts. Most of the claims were filed 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” (MDL). The MDL 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. The majority of claims not filed in the MDL were filed in the Superior Court of California, County of Los Angeles (California State Court). In November 2015, the MDL and California State Court - in separate opinions - granted summary judgment to defendants on grounds of preemption. Of the approximately 1,215 product user claims, these rulings resulted in the dismissal of approximately 1,175 product user claims. Plaintiffs are appealing the MDL and California State Court preemption rulings. As of June 30, 2017, eight product users have claims pending against Merck in state courts other than the California State Court, including four active product user claims pending in Illinois state court. On June 30, 2017, the Illinois court denied Merck’s motion for summary judgment on grounds of preemption. Merck is seeking permission to appeal that order on an interlocutory basis and to stay proceedings in the trial court. Trial for three of the product users in Illinois is currently scheduled to begin in November 2017; trial for the fourth product user is scheduled to begin in February 2018. In addition to the claims noted above, the Company has agreed to toll the statute of limitations for approximately 50 additional claims. The Company intends to continue defending against these lawsuits. Propecia/Proscar As previously disclosed, Merck is a defendant in product liability lawsuits in the United States involving Propecia and/or Proscar . As of June 30, 2017 , approximately 1,190 lawsuits have been filed by plaintiffs who allege that they have experienced persistent sexual side effects following cessation of treatment with Propecia and/or Proscar . Approximately 40 of the plaintiffs also allege that Propecia or Proscar has caused or can cause prostate cancer, testicular 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 Brian Cogan of the Eastern District of New York. The matters pending in state court in New Jersey have been consolidated before Judge James Hyland in Middlesex County. In addition, there is one matter pending in state court in California, one matter pending in state court in Ohio, and one matter on appeal in the Massachusetts Supreme Judicial Court. The Company intends to defend against these lawsuits. Governmental Proceedings The Company recently received an investigative subpoena from the California Insurance Commissioner’s Fraud Liaison Bureau (the Bureau) seeking information from January 1, 2007 to the present related to the pricing and promotion of Cubicin . The Bureau is investigating whether Cubist Pharmaceuticals, Inc., which the Company acquired in 2015, unlawfully induced the presentation of false claims for Cubicin to private insurers under the California Insurance Code False Claims Act. The Company is cooperating with the investigation. From time to time, the Company receives inquiries and is the subject of preliminary investigation activities from competition and other governmental authorities in markets outside the United States. These authorities may include regulators, administrative authorities, and law enforcement and other similar officials, and these preliminary investigation activities may include site visits, formal or informal requests or demands for documents or materials, inquiries or interviews and similar matters. Certain of these preliminary inquiries or activities may lead to the commencement of formal proceedings. Should those proceedings be determined adversely to the Company, monetary fines and/or remedial undertakings may be required. The UK Competition and Markets Authority (the CMA) issued a Statement of Objections against the Company and MSD Sharp & Dohme Limited (MSD UK) on May 23, 2017. In the Statement of Objections, the CMA alleges that MSD UK abused a dominant position through a discount program for Remicade over the period from March 2015 to February 2016. The Company and MSD UK are contesting the CMA’s allegations. Commercial and Other Litigation K-DUR Antitrust Litigation In June 1997 and January 1998, Schering-Plough Corporation (Schering-Plough) settled patent litigation with Upsher-Smith, Inc. (Upsher-Smith) and ESI Lederle, Inc. (Lederle), respectively, relating to generic versions of 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). Putative class and non-class action suits were then filed on behalf of direct and indirect purchasers of K‑DUR against Schering-Plough, Upsher-Smith and Lederle and were consolidated in a multidistrict litigation in the U.S. District Court for the District of New Jersey. In February 2016, the court denied the Company’s motion for summary judgment relating to all of the direct purchasers’ claims concerning the settlement with Upsher-Smith and granted the Company’s motion for summary judgment relating to all of the direct purchasers’ claims concerning the settlement with Lederle. As previously disclosed, in February 2017, Merck and Upsher-Smith reached a settlement in principle with the class of direct purchasers and the opt-outs to the class. Merck will contribute approximately $80 million in the aggregate towards the overall settlement. On April 5, 2017, the claims of the opt-outs were dismissed with prejudice pursuant to a written settlement agreement with those parties. On May 15, 2017, Merck and the class executed a settlement agreement, which received preliminary approval from the court on May 23, 2017. The final approval hearing is scheduled for October 5, 2017, following notice of the settlement to the class members. Sales Force Litigation As previously disclosed, in May 2013, Ms. Kelli Smith filed a complaint against the Company in the U.S. District Court for the District of New Jersey on 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. Plaintiffs sought and were granted leave to file an amended complaint. In January 2014, plaintiffs filed an amended complaint adding four additional named plaintiffs. In October 2014, the court denied the Company’s motion to dismiss or strike the class claims as premature. In September 2015, plaintiffs filed additional motions, including a motion for conditional certification under the Equal Pay Act; a motion to amend the pleadings seeking to add ERISA and constructive discharge claims and a Company subsidiary as a named defendant; and a motion for equitable relief. Merck filed papers in opposition to the motions. On April 27, 2016, the court granted plaintiff’s motion for conditional certification but denied plaintiffs’ motions to extend the liability period for their Equal Pay Act claims back to June 2009. As a result, the liability period will date back to April 2012, at the earliest. On April 29, 2016, the Magistrate Judge granted plaintiffs’ request to amend the complaint to add the following: (i) a Company subsidiary as a corporate defendant; (ii) an ERISA claim and (iii) an individual constructive discharge claim for one of the named plaintiffs. Approximately 700 individuals have opted-in to this action; the opt-in period has closed. On August 1, 2017, plaintiffs filed their motion for class certification. This motion seeks to certify a Title VII pay discrimination class and also seeks final collective action certification of plaintiffs’ Equal Pay Act claim. Merck KGaA Litigation In January 2016, to protect its long-established brand rights in the United States, the Company filed a lawsuit against Merck KGaA, Darmstadt, Germany (KGaA), operating as the EMD Group in the United States, alleging it improperly uses the name “Merck” in the United States. KGaA has filed suit against the Company in France, the United Kingdom (UK), Germany, Switzerland, Mexico, and India alleging breach of the parties’ co-existence agreement, unfair competition and/or trademark infringement. In December 2015, the Paris Court of First Instance issued a judgment finding that certain activities by the Company directed towards France did not constitute trademark infringement and unfair competition while other activities were found to infringe. The Company and KGaA appealed the decision, and the appeal was heard in May 2017. In June 2017, the French appeals court held that certain of the activities by the Company directed to France constituted unfair competition or trademark infringement. In January 2016, the UK High Court issued a judgment finding that the Company had breached the co-existence agreement and infringed KGaA’s trademark rights as a result of certain activities directed towards the UK based on use of the word MERCK on promotional and information activity. As noted in the UK decision, this finding was not based on the Company’s use of the sign MERCK in connection with the sale of products or any material pharmaceutical business transacted in the UK. The Company and KGaA have both appealed this decision, and the appeal was heard in June 2017. The Company is currently awaiting the decision. Patent Litigation From time to time, generic manufacturers of pharmaceutical products file ANDAs with the U.S. Food and Drug Administration (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: Invanz , Nasonex , Noxafil, 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 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 acquisitions, potentially significant intangible asset impairment charges. Invanz — In July 2014, a patent infringement lawsuit was filed in the United States against Hospira, Inc. (Hospira) in respect of Hospira’s application to the FDA seeking pre-patent expiry approval to market a generic version of Invanz . The trial in this matter was held in April 2016 and, in October 2016, the district court ruled that the patent is valid and infringed. In August 2015, a patent infringement lawsuit was filed in the United States against Savior Lifetec Corporation (Savior) in respect of Savior’s application to the FDA seeking pre-patent expiry approval to market a generic version of Invanz . The lawsuit automatically stays FDA approval of Savior’s application until November 2017 or until an adverse court decision, if any, whichever may occur earlier. Nasonex — In July 2014, a patent infringement lawsuit was filed in the United States against Teva Pharmaceuticals USA, Inc. (Teva Pharma) in respect of Teva Pharma’s application to the FDA seeking pre-patent expiry approval to market a generic version of Nasonex . The trial in this matter was held in June 2016. In November 2016, the district court ruled that the patent was valid but not infringed. In March 2017, the parties reached a settlement whereby Teva Pharma can launch its generic version in September 2017, or earlier under certain conditions. In March 2015, a patent infringement lawsuit was filed in the United States against Amneal Pharmaceuticals LLC (Amneal) in respect of Amneal’s application to the FDA seeking pre-patent expiry approval to market a generic version of Nasonex . The trial in this matter was held in June 2016. In January 2017, the district court ruled that the patent was valid but not infringed. The Company has appealed this decision. A previous decision, issued in June 2013, held that the Merck patent in the Teva Pharma and Amneal lawsuits covering mometasone furoate monohydrate was valid, but that it was not infringed by Apotex Corp.’s proposed product. In April 2015, a patent infringement lawsuit was filed against Apotex Inc. and Apotex Corp. (Apotex) in respect of Apotex’s now-launched product that the Company believes differs from the generic version in the previous lawsuit. Noxafil — In August 2015, the Company filed a lawsuit against Actavis Laboratories Fl, Inc. (Actavis) in the United States in respect of that company’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Noxafil . The lawsuit automatically stays FDA approval of Actavis’s application until December 2017 or until an adverse court decision, if any, whichever may occur earlier. The trial was held in July 2017 and closing arguments will be held in August 2017. In March 2016, the Company filed a lawsuit against Roxane Laboratories, Inc. (Roxane) in the United States in respect of that company’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Noxafil . The lawsuit automatically stays FDA approval of Roxane’s application until August 2018 or until an adverse court decision, if any, whichever may occur earlier. In February 2016, the Company filed a lawsuit against Par Sterile Products LLC, Par Pharmaceutical, Inc., Par Pharmaceutical Companies, Inc. and Par Pharmaceutical Holdings, Inc. (collectively, Par) in the United States in respect of that company’s application to the FDA seeking pre-patent expiry approval to sell a generic version of Noxafil . In October 2016, the parties reached a settlement whereby Par can launch its generic version in January 2023, or earlier under certain conditions. NuvaRing — In December 2013, the Company filed a lawsuit against a subsidiary of Allergan plc in the United States in respect of that company’s application to the FDA seeking pre-patent expiry approval to sell a generic version of NuvaRing . The trial in this matter was held in January 2016. In August 2016, the district court ruled that the patent was invalid and the Company has appealed this decision. In September 2015, the Company filed a lawsuit against Teva Pharma in the United States in respect of that company’s application to the FDA seeking pre-patent expiry approval to sell a generic version of NuvaRing . Based on its ruling in the Allergan plc matter, the district court dismissed the Company’s lawsuit in December 2016. The Company has appealed this decision and the appeal will be heard in September 2017. Anti-PD-1 Antibody Patent Oppositions and Litigation As previously disclosed, Ono Pharmaceutical Co. (Ono) has a European patent (EP 1 537 878) (’878) that broadly claims the use of an anti-PD-1 antibody, such as the Company’s immunotherapy, Keytruda , 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. BMS and Ono also own European Patent EP 2 161 336 (’336) that, as granted, broadly claimed anti-PD-1 antibodies that could include Keytruda . As previously disclosed, the Company and BMS and Ono were engaged in worldwide litigation, including in the United States, over the validity and infringement of the ’878 patent, the ’336 patent and their equivalents. In January 2017, the Company announced that it had entered into a settlement and license agreement with BMS and Ono resolving the worldwide patent infringement litigation related to the use of an anti-PD-1 antibody for the treatment of cancer, such as Keytruda. Under the settlement and license agreement, the Company made a one-time payment of $625 million (which was recorded as an expense in the Company’s 2016 financial results) to BMS and will pay royalties on the worldwide sales of Keytruda for a non-exclusive license to market Keytruda in any market in which it is approved. For global net sales of Keytruda , the Company will pay royalties as follows: • 6.5% of net sales occurring from January 1, 2017 through and including December 31, 2023; and • 2.5% of net sales occurring from January 1, 2024 through and including December 31, 2026. The parties also agreed to dismiss all claims worldwide in the relevant legal proceedings. In October 2015, PDL Biopharma (PDL) filed a lawsuit in the United States against the Company alleging that the manufacture of Keytruda infringed US Patent No. 5,693,761 (’761 patent), which expired in December 2014. This patent claims platform technology used in the creation and manufacture of recombinant antibodies and PDL is seeking damages for pre-expiry infringement of the ’761 patent. In April 2017, the parties reached a settlement pursuant to which, in exchange for a lump sum, PDL dismissed its lawsuit with prejudice and granted the Company a fully paid-up non-exclusive license to the ’761 patent. In July 2016, the Company filed a declaratory judgment action in the United States against Genentech and City of Hope seeking a ruling that US Patent No. 7,923,221 (the Cabilly III patent), which claims platform technology used in the creation and manufacture of recombinant antibodies, is invalid and that Keytruda and bezlotoxumab do not infringe the Cabilly III patent. In July 2016, the Company also filed a petition in the USPTO for Inter Partes Review (IPR) of certain claims of US Patent No. 6,331,415 (the Cabilly II patent), which claims platform technology used in the creation and manufacture of recombinant antibodies and is also owned by Genentech and City of Hope, as being invalid. In December 2016, the USPTO denied the petition but allowed the Company to join an IPR filed previously by another party. In May 2017, the parties reached a settlement pursuant to which the Company dismissed its lawsuit with prejudice and moved to terminate the IPR and Genentech and City of Hope granted the Company a fully paid-up non-exclusive license to the Cabilly II and Cabilly III patents. Gilead Patent Litigation and Opposition In August 2013, Gilead Sciences, Inc. (Gilead) filed a lawsuit in the U.S. District Court for the Northern District of California seeking a declaration that two Company patents were invalid and not infringed by the sale of their two sofosbuvir containing products, Sovaldi and Harvoni. The Company filed a counterclaim that the sale of these products did infringe these two patents and sought a reasonable royalty for the past, present and future sales of these products. In March 2016, at the conclusion of a jury trial, the patents were found to be not invalid and infringed. The jury awarded the Company $200 million as a royalty for sales of these products up to December 2015. After the conclusion of the jury trial, the court held a bench trial on the equitable defenses raised by Gilead. In June 2016, the court found for Gilead and determined that Merck could not collect the jury award and that the patents were unenforceable with respect to Gilead. The Company has appealed the court’s decision. Gilead has also asked the court to overturn the jury’s decision on validity. The court held a hearing on Gilead’s motion in August 2016, and the court subsequently rejected Gilead’s request. The Company will pay 20% , net of legal fees, of damages or royalties, if any, that it receives to Ionis Pharmaceuticals, Inc. The Company, through its Idenix Pharmaceuticals, Inc. subsidiary, has pending litigation against Gilead in the United States, the UK, Norway, Canada, Germany, France, and Australia based on different patent estates that would also be infringed by Gilead’s sales of these two products. Gilead has opposed the European patent at the European Patent Office (EPO). Trial in the United States was held in December 2016 and the jury returned a verdict for the Company, awarding damages of $2.54 billion . The Company submitted post-trial motions, including on the issues of enhanced damages and future royalties. Gilead submitted post-trial motions for judgment as a matter of law. A hearing on the motions is scheduled for September 2017. In Australia, the Company was initially unsuccessful and that case is currently under appeal. In Canada, the Company was initially unsuccessful and the Federal Court of Appeals has affirmed the lower court decision. The Company is considering its options in Canada, including seeking leave to the Supreme Court for further review. In the UK and Norway, the patent was held invalid and no further appeal was filed. The EPO opposition division revoked the European patent, and the Company has appealed this decision. The cases in France and Germany have been stayed pending the final decision of the EPO. 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 estima

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Equity Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions) Shares Par Value Shares Cost Balance at January 1, 2016 3,577 $ 1,788 $ 40,222 $ 45,348 $ (4,148 ) 796 $ (38,534 ) $ 91 $ 44,767 Net income attributable to Merck & Co., Inc. — — — 2,330 — — — — 2,330 Other comprehensive income, net of taxes — — — — 62 — — — 62 Cash dividends declared on common stock — — — (2,557 ) — — — — (2,557 ) Treasury stock shares purchased — — — — — 30 (1,573 ) — (1,573 ) Share-based compensation plans and other — — (311 ) — — (15 ) 730 — 419 Net income attributable to noncontrolling interests — — — — — — — 9 9 Distributions attributable to noncontrolling interests — — — — — — — (11 ) (11 ) Balance at June 30, 2016 3,577 $ 1,788 $ 39,911 $ 45,121 $ (4,086 ) 811 $ (39,377 ) $ 89 $ 43,446 Balance at January 1, 2017 3,577 $ 1,788 $ 39,939 $ 44,133 $ (5,226 ) 828 $ (40,546 ) $ 220 $ 40,308 Net income attributable to Merck & Co., Inc. — — — 3,496 — — — — 3,496 Other comprehensive income, net of taxes — — — — 132 — — — 132 Cash dividends declared on common stock — — — (2,583 ) — — — — (2,583 ) Treasury stock shares purchased — — — — — 34 (2,153 ) — (2,153 ) Share-based compensation plans and other — — (163 ) — — (12 ) 646 — 483 Acquisition of Vallée — — — — — — — 25 25 Net income attributable to noncontrolling interests — — — — — — — 11 11 Distributions attributable to noncontrolling interests — — — — — — — (7 ) (7 ) Balance at June 30, 2017 3,577 1,788 39,776 45,046 (5,094 ) 850 (42,053 ) 249 39,712

Share-Based Compensation Plans

Share-Based Compensation Plans	6 Months Ended
	Jun. 30, 2017
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 and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. The following table provides the amounts of share-based compensation cost recorded in the Condensed Consolidated Statement of Income: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Pretax share-based compensation expense $ 82 $ 80 $ 156 $ 148 Income tax benefit (25 ) (25 ) (47 ) (45 ) Total share-based compensation expense, net of taxes $ 57 $ 55 $ 109 $ 103 During the first six months of 2017 and 2016 , the Company granted 5 million RSUs with a weighted-average grant date fair value of $63.97 per RSU and 5 million RSUs with a weighted-average grant date fair value of $54.54 per RSU, respectively. During the first six months of 2017 and 2016 , the Company granted 4 million stock options with a weighted-average exercise price of $63.98 per option and 6 million stock options with a weighted-average exercise price of $54.61 per option, respectively. The weighted-average fair value of options granted for the first six months of 2017 and 2016 was $7.05 and $5.89 per option, respectively, and was determined using the following assumptions: Six Months Ended 2017 2016 Expected dividend yield 3.6 % 3.8 % Risk-free interest rate 2.0 % 1.4 % Expected volatility 17.9 % 19.6 % Expected life (years) 6.1 6.2 At June 30, 2017 , there was $633 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 2.2 years . For segment reporting, share-based compensation costs are unallocated expenses.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2017
Retirement Benefits [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. The net periodic benefit cost (credit) of such plans consisted of the following components: Three Months Ended Six Months Ended 2017 2016 2017 2016 ($ in millions) U.S. International U.S. International U.S. International U.S. International Service cost $ 77 $ 63 $ 73 $ 62 $ 154 $ 124 $ 146 $ 120 Interest cost 113 42 113 52 226 83 226 105 Expected return on plan assets (218 ) (97 ) (210 ) (97 ) (436 ) (191 ) (420 ) (193 ) Amortization of unrecognized prior service credit (13 ) (3 ) (14 ) (3 ) (27 ) (5 ) (27 ) (6 ) Net loss amortization 44 24 29 21 89 47 57 43 Termination benefits 3 1 1 — 8 2 5 — Curtailments 1 (1 ) — — 4 (1 ) — 1 $ 7 $ 29 $ (8 ) $ 35 $ 18 $ 59 $ (13 ) $ 70 The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net cost (credit) of such plans consisted of the following components: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Service cost $ 14 $ 13 $ 28 $ 27 Interest cost 20 21 40 42 Expected return on plan assets (20 ) (34 ) (39 ) (69 ) Amortization of unrecognized prior service credit (24 ) (26 ) (49 ) (53 ) Termination benefits — — 1 1 Curtailments (2 ) (1 ) (5 ) (2 ) $ (12 ) $ (27 ) $ (24 ) $ (54 ) In connection with restructuring actions (see Note 3), termination charges were recorded on pension and other postretirement benefit plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring actions, curtailments were recorded on pension and other postretirement benefit plans as reflected in the tables above.

Other (Income) Expense, Net

Other (Income) Expense, Net	6 Months Ended
	Jun. 30, 2017
Other Income and Expenses [Abstract]
Other (Income) Expense, Net	Other (Income) Expense, Net Other (income) expense, net, consisted of: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Interest income $ (96 ) $ (78 ) $ (194 ) $ (157 ) Interest expense 193 171 375 343 Exchange losses 19 37 11 76 Equity (income) loss from affiliates (5 ) (4 ) 8 (38 ) Other, net (53 ) (107 ) (83 ) (157 ) $ 58 $ 19 $ 117 $ 67 The change in equity (income) loss from affiliates in the first six months of 2017 as compared with the same period of 2016 was driven primarily by lower equity income from certain research investment funds, as well as by the termination of the SPMSD joint venture on December 31, 2016. Other, net (as reflected in the table above) in the second quarter and first six months of 2016 includes a gain of $115 million related to the settlement of certain patent litigation. Interest paid for the six months ended June 30, 2017 and 2016 was $343 million and $321 million , respectively.

Taxes on Income

Taxes on Income	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Taxes on Income	Taxes on Income The effective income tax rates of 20.0% and 19.6% for the second quarter of 2017 and 2016 , respectively, and 21.0% and 25.2% for the first six months of 2017 and 2016 , respectively, reflect the impacts of acquisition and divestiture-related costs and restructuring costs, partially offset by the beneficial impact of foreign earnings. The effective income tax rates for the second quarter and first six months of 2017 also include a benefit of $88 million related to the settlement of a state income tax issue. The effective income tax rates for the second quarter and first six months of 2016 also reflect the beneficial impact of orphan drug federal income tax credits, primarily for Keytruda , recorded in the second quarter. The Company is under examination by numerous tax authorities in various jurisdictions globally. 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. However, there is one item that is currently under discussion with the Internal Revenue Service relating to the 2006 through 2008 examination. The Company has concluded that its position should be sustained upon audit. However, if this item were to result in an unfavorable outcome or settlement, it could have a material adverse impact on the Company’s financial position, liquidity and results of operations.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The calculations of earnings per share are as follows: Three Months Ended Six Months Ended ($ and shares in millions except per share amounts) 2017 2016 2017 2016 Net income attributable to Merck & Co., Inc. $ 1,946 $ 1,205 $ 3,496 $ 2,330 Average common shares outstanding 2,734 2,768 2,739 2,771 Common shares issuable (1) 18 21 20 21 Average common shares outstanding assuming dilution 2,752 2,789 2,759 2,792 Basic earnings per common share attributable to Merck & Co., Inc. common shareholders $ 0.71 $ 0.44 $ 1.28 $ 0.84 Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders $ 0.71 $ 0.43 $ 1.27 $ 0.83 (1) Issuable primarily under share-based compensation plans. For the three months ended June 30, 2017 and 2016 , 5 million and 13 million , respectively, and for the first six months of 2017 and 2016, 4 million and 12 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)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Changes in AOCI by component are as follows: Three Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance April 1, 2016, net of taxes $ 202 $ 104 $ (2,435 ) $ (2,065 ) $ (4,194 ) Other comprehensive income (loss) before reclassification adjustments, pretax (75 ) 76 (183 ) 255 73 Tax 27 (5 ) 68 (11 ) 79 Other comprehensive income (loss) before reclassification adjustments, net of taxes (48 ) 71 (115 ) 244 152 Reclassification adjustments, pretax (66 ) (1) (10 ) (2) 7 (3) — (69 ) Tax 23 2 — — 25 Reclassification adjustments, net of taxes (43 ) (8 ) 7 — (44 ) Other comprehensive income (loss), net of taxes (91 ) 63 (108 ) 244 108 Balance June 30, 2016, net of taxes $ 111 $ 167 $ (2,543 ) $ (1,821 ) $ (4,086 ) Balance April 1, 2017, net of taxes $ 106 $ 40 $ (3,180 ) $ (2,046 ) $ (5,080 ) Other comprehensive income (loss) before reclassification adjustments, pretax (169 ) 26 29 (25 ) (139 ) Tax 59 3 (3 ) 72 131 Other comprehensive income (loss) before reclassification adjustments, net of taxes (110 ) 29 26 47 (8 ) Reclassification adjustments, pretax (50 ) (1) 8 (2) 27 (3) — (15 ) Tax 17 (2 ) (6 ) — 9 Reclassification adjustments, net of taxes (33 ) 6 21 — (6 ) Other comprehensive income (loss), net of taxes (143 ) 35 47 47 (14 ) Balance June 30, 2017, net of taxes $ (37 ) $ 75 $ (3,133 ) $ (1,999 ) $ (5,094 ) Six Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance January 1, 2016, net of taxes $ 404 $ 41 $ (2,407 ) $ (2,186 ) $ (4,148 ) Other comprehensive income (loss) before reclassification adjustments, pretax (242 ) 130 (218 ) 354 24 Tax 85 11 67 11 174 Other comprehensive income (loss) before reclassification adjustments, net of taxes (157 ) 141 (151 ) 365 198 Reclassification adjustments, pretax (209 ) (1) (21 ) (2) 14 (3) — (216 ) Tax 73 6 1 — 80 Reclassification adjustments, net of taxes (136 ) (15 ) 15 — (136 ) Other comprehensive income (loss), net of taxes (293 ) 126 (136 ) 365 62 Balance June 30, 2016, net of taxes $ 111 $ 167 $ (2,543 ) $ (1,821 ) $ (4,086 ) Balance January 1, 2017, net of taxes $ 338 $ (3 ) $ (3,206 ) $ (2,355 ) $ (5,226 ) Other comprehensive income (loss) before reclassification adjustments, pretax (432 ) 113 25 238 (56 ) Tax 151 (4 ) 6 118 271 Other comprehensive income (loss) before reclassification adjustments, net of taxes (281 ) 109 31 356 215 Reclassification adjustments, pretax (145 ) (1) (49 ) (2) 55 (3) — (139 ) Tax 51 18 (13 ) — 56 Reclassification adjustments, net of taxes (94 ) (31 ) 42 — (83 ) Other comprehensive income (loss), net of taxes (375 ) 78 73 356 132 Balance June 30, 2017, net of taxes $ (37 ) $ 75 $ (3,133 ) $ (1,999 ) $ (5,094 ) (1) Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales. (2) Represents net realized (gains) losses 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 10).

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company’s operations are principally managed on a products basis and include the Pharmaceutical, Animal Health, Healthcare Services and Alliances operating segments. The Animal Health, Healthcare Services and Alliances segments are not material for separate reporting. The Pharmaceutical segment includes human health pharmaceutical and vaccine products. 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 vaccine sales are made 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. Sales of vaccines in most major European markets were marketed through the Company’s SPMSD joint venture until its termination on December 31, 2016. The Company also has an Animal Health segment that discovers, develops, manufactures and markets animal health products, including vaccines, which the Company sells to veterinarians, distributors and animal producers. The Company’s Healthcare Services segment provides services and solutions that focus on engagement, health analytics and clinical services to improve the value of care delivered to patients. Sales of the Company’s products were as follows: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Primary Care and Women’s Health Cardiovascular Zetia $ 367 $ 702 $ 701 $ 1,314 Vytorin 182 293 423 570 Atozet 63 33 112 56 Adempas 67 40 151 72 Diabetes Januvia 948 1,064 1,787 1,970 Janumet 563 569 1,059 1,075 General Medicine and Women’s Health NuvaRing 199 200 359 376 Implanon/Nexplanon 178 164 349 298 Follistim AQ 79 73 160 167 Hospital and Specialty Hepatitis Zepatier 517 112 895 161 HIV Isentress/Isentress HD 282 338 587 678 Hospital Acute Care Bridion 163 113 310 204 Noxafil 155 143 296 288 Invanz 150 143 286 257 Cancidas 112 131 233 263 Cubicin 103 357 198 649 Primaxin 71 81 133 154 Immunology Remicade 208 339 437 688 Simponi 199 199 383 387 Oncology Keytruda 881 314 1,465 563 Emend 143 143 276 268 Temodar 65 73 130 139 Diversified Brands Respiratory Singulair 203 229 389 465 Nasonex 85 101 224 331 Dulera 69 121 151 234 Other Cozaar/Hyzaar 119 132 231 258 Arcoxia 89 117 192 228 Fosamax 66 73 127 148 Vaccines (1) Gardasil/Gardasil 9 469 393 1,001 770 ProQuad/M-M-R II /Varivax 399 383 754 739 RotaTeq 123 130 347 318 Pneumovax 23 166 120 329 228 Zostavax 160 149 313 274 Other pharmaceutical (2) 1,116 1,128 2,156 2,214 Total Pharmaceutical segment sales 8,759 8,700 16,944 16,804 Other segment sales (3) 1,056 980 2,089 1,885 Total segment sales 9,815 9,680 19,033 18,689 Other (4) 115 164 332 467 $ 9,930 $ 9,844 $ 19,365 $ 19,156 (1) On December 31, 2016, Merck and Sanofi terminated their equally-owned joint venture, SPMSD, which marketed vaccines in most major European markets. Accordingly, vaccine sales in 2017 include sales in the European markets that were previously part of SPMSD. Amounts for 2016 do not include sales of vaccines sold through SPMSD, the results of which are reflected in equity income from affiliates which is included in Other (income) expense, net . Amounts for 2016 do, however, include supply sales to SPMSD . (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, Healthcare Services and Alliances. (4) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales . Other in the first six months of 2017 and 2016 also includes $50 million and $75 million , respectively, related to the sale of the marketing rights to certain products. A reconciliation of segment profits to Income before taxes is as follows: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Segment profits: Pharmaceutical segment $ 5,613 $ 5,420 $ 10,793 $ 10,537 Other segments 508 386 961 739 Total segment profits 6,121 5,806 11,754 11,276 Other profits 43 93 186 320 Unallocated: Interest income 96 78 194 157 Interest expense (193 ) (171 ) (375 ) (343 ) Equity income from affiliates 5 (6 ) (7 ) 14 Depreciation and amortization (332 ) (438 ) (702 ) (864 ) Research and development (1,527 ) (1,833 ) (3,126 ) (3,206 ) Amortization of purchase accounting adjustments (779 ) (1,027 ) (1,557 ) (2,161 ) Restructuring costs (166 ) (134 ) (317 ) (225 ) Other unallocated, net (829 ) (864 ) (1,608 ) (1,840 ) $ 2,439 $ 1,504 $ 4,442 $ 3,128 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 are primarily comprised of miscellaneous corporate profits, as well as operating profits related to third-party manufacturing sales. Other unallocated, net includes expenses from corporate and manufacturing cost centers, goodwill and intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value of contingent consideration, and other miscellaneous income or expense items.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued amended accounting guidance on revenue recognition that will be applied to all contracts with customers. The objective of the new guidance is to improve comparability of revenue recognition practices across entities and to provide more useful information to users of financial statements through improved disclosure requirements. The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of adopting the guidance being recognized at the date of initial application (modified retrospective method). The Company will adopt the new standard on January 1, 2018 and currently plans to use the modified retrospective method. The majority of the Company’s business is ship and bill and, on that primary revenue stream, Merck does not expect significant differences. Additionally, the Company has not identified significant changes related to the recognition of revenue for its multiple element arrangements or discount and trade promotion programs when applying the new guidance. However, the Company’s analysis is preliminary and subject to change. In January 2016, the FASB issued revised guidance for the accounting and reporting of financial instruments. The new guidance requires that equity investments with readily determinable fair values currently classified as available-for-sale be measured at fair value with changes in fair value recognized in net income. The new guidance also simplifies the impairment testing of equity investments without readily determinable fair values and changes certain disclosure requirements. This guidance is effective for interim and annual periods beginning in 2018. Early adoption is not permitted. The Company is currently assessing the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued guidance on the classification of certain cash receipts and payments in the statement of cash flows intended to reduce diversity in practice. The guidance is effective for interim and annual periods beginning in 2018. Early adoption is permitted. The guidance is to be applied retrospectively to all periods presented but may be applied prospectively if retrospective application would be impracticable. The Company is currently evaluating the effect of the standard on its Consolidated Statement of Cash Flows. In October 2016, the FASB issued guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under existing guidance, the recognition of current and deferred income taxes for an intra-entity asset transfer is prohibited until the asset has been sold to a third party. The new guidance will require the recognition of the income tax consequences of an intra-entity transfer of an asset (with the exception of inventory) when the intra-entity transfer occurs. The guidance is effective for interim and annual periods beginning in 2018. The new guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings in the beginning of the period of adoption. The Company does not anticipate the adoption of the new guidance will have a material effect on its consolidated financial statements. In November 2016, the FASB issued guidance requiring that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance is effective for interim and annual periods beginning in 2018 and should be applied using a retrospective transition method to each period presented. Early adoption is permitted. The Company is currently evaluating the effect of the standard on its Consolidated Statement of Cash Flows. In March 2017, the FASB amended the guidance related to net periodic benefit cost for defined benefit plans that requires entities to (1) disaggregate the current service cost component from the other components of net benefit cost and present it with other employee compensation costs in the income statement within operations if such a subtotal is presented; (2) present the other components of net benefit cost separately in the income statement and outside of income from operations; and (3) only capitalize the service cost component when applicable. The new guidance is effective for interim and annual periods in 2018. Entities must use a retrospective transition method to adopt the requirement for separate presentation in the income statement of service costs and other components and a prospective transition method to adopt the requirement to limit the capitalization of benefit costs to the service cost component. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In May 2017, the FASB issued guidance clarifying when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The new guidance is effective prospectively for interim and annual periods beginning in 2018. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued new accounting guidance for the accounting and reporting of leases. The new guidance requires that lessees recognize a right-of-use asset and a lease liability recorded on the balance sheet for each of its leases (other than leases that meet the definition of a short-term lease). Leases will be classified as either operating or finance. Operating leases will result in straight-line expense in the income statement (similar to current operating leases) while finance leases will result in more expense being recognized in the earlier years of the lease term (similar to current capital leases). The new guidance will be effective for interim and annual periods beginning in 2019. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In June 2016, the FASB issued amended guidance on the accounting for credit losses on financial instruments. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for interim and annual periods beginning in 2020, with earlier application permitted in 2019. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued guidance that provides for the elimination of Step 2 from the goodwill impairment test. Under the new guidance, impairment charges are recognized to the extent the carrying amount of a reporting unit exceeds its fair value with certain limitations. The new guidance is effective for interim and annual periods in 2020. Early adoption is permitted. The Company does not anticipate the adoption of the new guidance will have a material effect on its consolidated financial statements.
Legal defense costs	Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable.

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Charges Related to Restructuring Program Activities by Type of Cost	The following tables summarize the charges related to restructuring program activities by type of cost: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Materials and production $ — $ (4 ) $ 37 $ 33 $ — $ 47 $ 49 $ 96 Marketing and administrative — 2 — 2 — 2 1 3 Research and development — 8 1 9 — 6 3 9 Restructuring costs 118 — 48 166 202 — 115 317 $ 118 $ 6 $ 86 $ 210 $ 202 $ 55 $ 168 $ 425 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Materials and production $ — $ 29 $ 37 $ 66 $ — $ 51 $ 62 $ 113 Marketing and administrative — 4 83 87 — 7 83 90 Research and development — 64 — 64 — 119 — 119 Restructuring costs 85 — 49 134 111 — 114 225 $ 85 $ 97 $ 169 $ 351 $ 111 $ 177 $ 259 $ 547
Charges and Spending Relating to Restructuring Activities by Program	The following table summarizes the charges and spending relating to restructuring program activities for the six months ended June 30, 2017 : ($ in millions) Separation Costs Accelerated Depreciation Other Total Restructuring reserves January 1, 2017 $ 395 $ — $ 146 $ 541 Expense 202 55 168 425 (Payments) receipts, net (167 ) — (234 ) (401 ) Non-cash activity — (55 ) 50 (5 ) Restructuring reserves June 30, 2017 (1) $ 430 $ — $ 130 $ 560 (1) The remaining cash outlays are expected to be substantially completed by the end of 2017.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Interest Rate Swaps Held	At June 30, 2017 , the Company was a party to 26 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 as detailed in the table below. ($ in millions) June 30, 2017 Debt Instrument Par Value of Debt Number of Interest Rate Swaps Held Total Swap Notional Amount 1.30% notes due 2018 $ 1,000 4 $ 1,000 5.00% notes due 2019 1,250 3 550 1.85% notes due 2020 1,250 5 1,250 3.875% notes due 2021 1,150 5 1,150 2.40% notes due 2022 1,000 4 1,000 2.35% notes due 2022 1,250 5 1,250
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: June 30, 2017 December 31, 2016 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional ($ in millions) Balance Sheet Caption Asset Liability Asset Liability Derivatives Designated as Hedging Instruments Interest rate swap contracts Other assets $ 21 $ — $ 2,700 $ 20 $ — $ 2,700 Interest rate swap contracts Accrued and other current liabilities — 4 1,000 — — — Interest rate swap contracts Other noncurrent liabilities — 19 2,500 — 29 3,500 Foreign exchange contracts Other current assets 154 — 4,223 616 — 6,063 Foreign exchange contracts Other assets 31 — 1,388 129 — 2,075 Foreign exchange contracts Accrued and other current liabilities — 58 1,692 — 1 48 Foreign exchange contracts Other noncurrent liabilities — — — — 1 12 $ 206 $ 81 $ 13,503 $ 765 $ 31 $ 14,398 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Other current assets $ 134 $ — $ 5,586 $ 230 $ — $ 8,210 Foreign exchange contracts Accrued and other current liabilities — 120 5,807 — 103 2,931 $ 134 $ 120 $ 11,393 $ 230 $ 103 $ 11,141 $ 340 $ 201 $ 24,896 $ 995 $ 134 $ 25,539
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: June 30, 2017 December 31, 2016 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 340 $ 201 $ 995 $ 134 Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet (132 ) (132 ) (131 ) (131 ) Cash collateral received (65 ) — (529 ) — Net amounts $ 143 $ 69 $ 335 $ 3
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 and (iii) not designated in a hedging relationship: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Derivatives designated in a fair value hedging relationship Interest rate swap contracts Amount of gain recognized in Other (income) expense, net on derivatives (1) $ (22 ) $ (48 ) $ (7 ) $ (198 ) Amount of loss recognized in Other (income) expense, net on hedged item (1) 20 47 4 194 Derivatives designated in foreign currency cash flow hedging relationships Foreign exchange contracts Amount of gain reclassified from AOCI to Sales (49 ) (65 ) (144 ) (207 ) Amount of loss recognized in OCI on derivatives 169 75 432 242 Derivatives not designated in a hedging relationship Foreign exchange contracts Amount of gain recognized in Other (income) expense, net on derivatives (2) (3 ) (140 ) (49 ) (116 ) (1) There was $2 million and $1 million of ineffectiveness on the hedge during the second quarter of 2017 and 2016 , respectively, and $3 million and $4 million , respectively, of ineffectiveness on the hedge during the first six months of 2017 and 2016 , respectively. (2) These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates.
Information on Available-for-sale Investments	Information on investments in debt and equity securities is as follows: June 30, 2017 December 31, 2016 Fair Value Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized ($ in millions) Gains Losses Gains Losses Corporate notes and bonds $ 10,469 $ 10,460 $ 28 $ (19 ) $ 10,577 $ 10,601 $ 15 $ (39 ) U.S. government and agency securities 2,009 2,018 — (9 ) 2,232 2,244 1 (13 ) Commercial paper 1,607 1,607 — — 4,330 4,330 — — Asset-backed securities 1,399 1,399 2 (2 ) 1,376 1,380 1 (5 ) Mortgage-backed securities 710 714 1 (5 ) 796 801 1 (6 ) Foreign government bonds 569 571 — (2 ) 519 521 — (2 ) Equity securities 376 285 92 (1 ) 349 281 71 (3 ) $ 17,139 $ 17,054 $ 123 $ (38 ) $ 20,179 $ 20,158 $ 89 $ (68 )
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in millions) June 30, 2017 December 31, 2016 Assets Investments Corporate notes and bonds $ — $ 10,305 $ — $ 10,305 $ — $ 10,389 $ — $ 10,389 U.S. government and agency securities 67 1,649 — 1,716 29 1,890 — 1,919 Commercial paper — 1,607 — 1,607 — 4,330 — 4,330 Asset-backed securities (1) — 1,314 — 1,314 — 1,257 — 1,257 Mortgage-backed securities (1) — 596 — 596 — 628 — 628 Foreign government bonds — 568 — 568 — 518 — 518 Equity securities 213 — — 213 201 — — 201 280 16,039 — 16,319 230 19,012 — 19,242 Other assets U.S. government and agency securities — 293 — 293 — 313 — 313 Corporate notes and bonds — 164 — 164 — 188 — 188 Mortgage-backed securities (1) — 114 — 114 — 168 — 168 Asset-backed securities (1) — 85 — 85 — 119 — 119 Foreign government bonds — 1 — 1 — 1 — 1 Equity securities 163 — — 163 148 — — 148 163 657 — 820 148 789 — 937 Derivative assets (2) Purchased currency options — 180 — 180 — 644 — 644 Forward exchange contracts — 139 — 139 — 331 — 331 Interest rate swaps — 21 — 21 — 20 — 20 — 340 — 340 — 995 — 995 Total assets $ 443 $ 17,036 $ — $ 17,479 $ 378 $ 20,796 $ — $ 21,174 Liabilities Other liabilities Contingent consideration $ — $ — $ 1,002 $ 1,002 $ — $ — $ 891 $ 891 Derivative liabilities (2) Forward exchange contracts — 178 — 178 — 93 — 93 Interest rate swaps — 23 — 23 — 29 — 29 Written currency options — — — — — 12 — 12 — 201 — 201 — 134 — 134 Total liabilities $ — $ 201 $ 1,002 $ 1,203 $ — $ 134 $ 891 $ 1,025 (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 auto loan, credit card and student loan 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.
Information About the Changes in Liabilities for Contingent Consideration	Summarized information about the changes in liabilities for contingent consideration is as follows: Six Months Ended June 30, ($ in millions) 2017 2016 Fair value January 1 $ 891 $ 590 Changes in fair value (1) 108 19 Additions 3 77 Payments — (25 ) Fair value June 30 (2) $ 1,002 $ 661 (1) Recorded in Research and development expenses, Materials and production costs and Other (income) expense, net . Includes cumulative translation adjustments. (2) Amount at June 30, 2017, includes $308 million recorded as a current liability for amounts expected to be paid within the next 12 months, including $100 million related to the acquisition of IOmet (see Note 2).

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of: ($ in millions) June 30, 2017 December 31, 2016 Finished goods $ 1,396 $ 1,304 Raw materials and work in process 4,654 4,222 Supplies 175 155 Total (approximates current cost) 6,225 5,681 Increase to LIFO costs 258 302 $ 6,483 $ 5,983 Recognized as: Inventories $ 5,407 $ 4,866 Other assets 1,076 1,117

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions) Shares Par Value Shares Cost Balance at January 1, 2016 3,577 $ 1,788 $ 40,222 $ 45,348 $ (4,148 ) 796 $ (38,534 ) $ 91 $ 44,767 Net income attributable to Merck & Co., Inc. — — — 2,330 — — — — 2,330 Other comprehensive income, net of taxes — — — — 62 — — — 62 Cash dividends declared on common stock — — — (2,557 ) — — — — (2,557 ) Treasury stock shares purchased — — — — — 30 (1,573 ) — (1,573 ) Share-based compensation plans and other — — (311 ) — — (15 ) 730 — 419 Net income attributable to noncontrolling interests — — — — — — — 9 9 Distributions attributable to noncontrolling interests — — — — — — — (11 ) (11 ) Balance at June 30, 2016 3,577 $ 1,788 $ 39,911 $ 45,121 $ (4,086 ) 811 $ (39,377 ) $ 89 $ 43,446 Balance at January 1, 2017 3,577 $ 1,788 $ 39,939 $ 44,133 $ (5,226 ) 828 $ (40,546 ) $ 220 $ 40,308 Net income attributable to Merck & Co., Inc. — — — 3,496 — — — — 3,496 Other comprehensive income, net of taxes — — — — 132 — — — 132 Cash dividends declared on common stock — — — (2,583 ) — — — — (2,583 ) Treasury stock shares purchased — — — — — 34 (2,153 ) — (2,153 ) Share-based compensation plans and other — — (163 ) — — (12 ) 646 — 483 Acquisition of Vallée — — — — — — — 25 25 Net income attributable to noncontrolling interests — — — — — — — 11 11 Distributions attributable to noncontrolling interests — — — — — — — (7 ) (7 ) Balance at June 30, 2017 3,577 1,788 39,776 45,046 (5,094 ) 850 (42,053 ) 249 39,712

Share-Based Compensation Plans

Share-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Amounts of Share-Based Compensation Cost Recorded in Consolidated Statement of Income	The following table provides the amounts of share-based compensation cost recorded in the Condensed Consolidated Statement of Income: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Pretax share-based compensation expense $ 82 $ 80 $ 156 $ 148 Income tax benefit (25 ) (25 ) (47 ) (45 ) Total share-based compensation expense, net of taxes $ 57 $ 55 $ 109 $ 103
Assumptions Used to Determine Weighted-Average Fair Value of Options Granted	The weighted-average fair value of options granted for the first six months of 2017 and 2016 was $7.05 and $5.89 per option, respectively, and was determined using the following assumptions: Six Months Ended 2017 2016 Expected dividend yield 3.6 % 3.8 % Risk-free interest rate 2.0 % 1.4 % Expected volatility 17.9 % 19.6 % Expected life (years) 6.1 6.2

Pension and Other Postretirem28

Pension and Other Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Components of net cost of defined benefit plans	The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components: Three Months Ended Six Months Ended 2017 2016 2017 2016 ($ in millions) U.S. International U.S. International U.S. International U.S. International Service cost $ 77 $ 63 $ 73 $ 62 $ 154 $ 124 $ 146 $ 120 Interest cost 113 42 113 52 226 83 226 105 Expected return on plan assets (218 ) (97 ) (210 ) (97 ) (436 ) (191 ) (420 ) (193 ) Amortization of unrecognized prior service credit (13 ) (3 ) (14 ) (3 ) (27 ) (5 ) (27 ) (6 ) Net loss amortization 44 24 29 21 89 47 57 43 Termination benefits 3 1 1 — 8 2 5 — Curtailments 1 (1 ) — — 4 (1 ) — 1 $ 7 $ 29 $ (8 ) $ 35 $ 18 $ 59 $ (13 ) $ 70
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Components of net cost of defined benefit plans	The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net cost (credit) of such plans consisted of the following components: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Service cost $ 14 $ 13 $ 28 $ 27 Interest cost 20 21 40 42 Expected return on plan assets (20 ) (34 ) (39 ) (69 ) Amortization of unrecognized prior service credit (24 ) (26 ) (49 ) (53 ) Termination benefits — — 1 1 Curtailments (2 ) (1 ) (5 ) (2 ) $ (12 ) $ (27 ) $ (24 ) $ (54 )

Other (Income) Expense, Net (Ta

Other (Income) Expense, Net (Tables)	6 Months Ended
	Jun. 30, 2017
Other Income and Expenses [Abstract]
Other (Income) Expense, Net	Other (income) expense, net, consisted of: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Interest income $ (96 ) $ (78 ) $ (194 ) $ (157 ) Interest expense 193 171 375 343 Exchange losses 19 37 11 76 Equity (income) loss from affiliates (5 ) (4 ) 8 (38 ) Other, net (53 ) (107 ) (83 ) (157 ) $ 58 $ 19 $ 117 $ 67

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Calculations of Earnings Per Share	The calculations of earnings per share are as follows: Three Months Ended Six Months Ended ($ and shares in millions except per share amounts) 2017 2016 2017 2016 Net income attributable to Merck & Co., Inc. $ 1,946 $ 1,205 $ 3,496 $ 2,330 Average common shares outstanding 2,734 2,768 2,739 2,771 Common shares issuable (1) 18 21 20 21 Average common shares outstanding assuming dilution 2,752 2,789 2,759 2,792 Basic earnings per common share attributable to Merck & Co., Inc. common shareholders $ 0.71 $ 0.44 $ 1.28 $ 0.84 Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders $ 0.71 $ 0.43 $ 1.27 $ 0.83 (1) Issuable primarily under share-based compensation plans.

Other Comprehensive Income (L31

Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Changes in AOCI by Component	Changes in AOCI by component are as follows: Three Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance April 1, 2016, net of taxes $ 202 $ 104 $ (2,435 ) $ (2,065 ) $ (4,194 ) Other comprehensive income (loss) before reclassification adjustments, pretax (75 ) 76 (183 ) 255 73 Tax 27 (5 ) 68 (11 ) 79 Other comprehensive income (loss) before reclassification adjustments, net of taxes (48 ) 71 (115 ) 244 152 Reclassification adjustments, pretax (66 ) (1) (10 ) (2) 7 (3) — (69 ) Tax 23 2 — — 25 Reclassification adjustments, net of taxes (43 ) (8 ) 7 — (44 ) Other comprehensive income (loss), net of taxes (91 ) 63 (108 ) 244 108 Balance June 30, 2016, net of taxes $ 111 $ 167 $ (2,543 ) $ (1,821 ) $ (4,086 ) Balance April 1, 2017, net of taxes $ 106 $ 40 $ (3,180 ) $ (2,046 ) $ (5,080 ) Other comprehensive income (loss) before reclassification adjustments, pretax (169 ) 26 29 (25 ) (139 ) Tax 59 3 (3 ) 72 131 Other comprehensive income (loss) before reclassification adjustments, net of taxes (110 ) 29 26 47 (8 ) Reclassification adjustments, pretax (50 ) (1) 8 (2) 27 (3) — (15 ) Tax 17 (2 ) (6 ) — 9 Reclassification adjustments, net of taxes (33 ) 6 21 — (6 ) Other comprehensive income (loss), net of taxes (143 ) 35 47 47 (14 ) Balance June 30, 2017, net of taxes $ (37 ) $ 75 $ (3,133 ) $ (1,999 ) $ (5,094 ) Six Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance January 1, 2016, net of taxes $ 404 $ 41 $ (2,407 ) $ (2,186 ) $ (4,148 ) Other comprehensive income (loss) before reclassification adjustments, pretax (242 ) 130 (218 ) 354 24 Tax 85 11 67 11 174 Other comprehensive income (loss) before reclassification adjustments, net of taxes (157 ) 141 (151 ) 365 198 Reclassification adjustments, pretax (209 ) (1) (21 ) (2) 14 (3) — (216 ) Tax 73 6 1 — 80 Reclassification adjustments, net of taxes (136 ) (15 ) 15 — (136 ) Other comprehensive income (loss), net of taxes (293 ) 126 (136 ) 365 62 Balance June 30, 2016, net of taxes $ 111 $ 167 $ (2,543 ) $ (1,821 ) $ (4,086 ) Balance January 1, 2017, net of taxes $ 338 $ (3 ) $ (3,206 ) $ (2,355 ) $ (5,226 ) Other comprehensive income (loss) before reclassification adjustments, pretax (432 ) 113 25 238 (56 ) Tax 151 (4 ) 6 118 271 Other comprehensive income (loss) before reclassification adjustments, net of taxes (281 ) 109 31 356 215 Reclassification adjustments, pretax (145 ) (1) (49 ) (2) 55 (3) — (139 ) Tax 51 18 (13 ) — 56 Reclassification adjustments, net of taxes (94 ) (31 ) 42 — (83 ) Other comprehensive income (loss), net of taxes (375 ) 78 73 356 132 Balance June 30, 2017, net of taxes $ (37 ) $ 75 $ (3,133 ) $ (1,999 ) $ (5,094 ) (1) Relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales. (2) Represents net realized (gains) losses 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 10).

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Sales of Company's products	Sales of the Company’s products were as follows: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Primary Care and Women’s Health Cardiovascular Zetia $ 367 $ 702 $ 701 $ 1,314 Vytorin 182 293 423 570 Atozet 63 33 112 56 Adempas 67 40 151 72 Diabetes Januvia 948 1,064 1,787 1,970 Janumet 563 569 1,059 1,075 General Medicine and Women’s Health NuvaRing 199 200 359 376 Implanon/Nexplanon 178 164 349 298 Follistim AQ 79 73 160 167 Hospital and Specialty Hepatitis Zepatier 517 112 895 161 HIV Isentress/Isentress HD 282 338 587 678 Hospital Acute Care Bridion 163 113 310 204 Noxafil 155 143 296 288 Invanz 150 143 286 257 Cancidas 112 131 233 263 Cubicin 103 357 198 649 Primaxin 71 81 133 154 Immunology Remicade 208 339 437 688 Simponi 199 199 383 387 Oncology Keytruda 881 314 1,465 563 Emend 143 143 276 268 Temodar 65 73 130 139 Diversified Brands Respiratory Singulair 203 229 389 465 Nasonex 85 101 224 331 Dulera 69 121 151 234 Other Cozaar/Hyzaar 119 132 231 258 Arcoxia 89 117 192 228 Fosamax 66 73 127 148 Vaccines (1) Gardasil/Gardasil 9 469 393 1,001 770 ProQuad/M-M-R II /Varivax 399 383 754 739 RotaTeq 123 130 347 318 Pneumovax 23 166 120 329 228 Zostavax 160 149 313 274 Other pharmaceutical (2) 1,116 1,128 2,156 2,214 Total Pharmaceutical segment sales 8,759 8,700 16,944 16,804 Other segment sales (3) 1,056 980 2,089 1,885 Total segment sales 9,815 9,680 19,033 18,689 Other (4) 115 164 332 467 $ 9,930 $ 9,844 $ 19,365 $ 19,156 (1) On December 31, 2016, Merck and Sanofi terminated their equally-owned joint venture, SPMSD, which marketed vaccines in most major European markets. Accordingly, vaccine sales in 2017 include sales in the European markets that were previously part of SPMSD. Amounts for 2016 do not include sales of vaccines sold through SPMSD, the results of which are reflected in equity income from affiliates which is included in Other (income) expense, net . Amounts for 2016 do, however, include supply sales to SPMSD . (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, Healthcare Services and Alliances. (4) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales . Other in the first six months of 2017 and 2016 also includes $50 million and $75 million , respectively, related to the sale of the marketing rights to certain products.
Reconciliation of segment profits to income before taxes	A reconciliation of segment profits to Income before taxes is as follows: Three Months Ended Six Months Ended ($ in millions) 2017 2016 2017 2016 Segment profits: Pharmaceutical segment $ 5,613 $ 5,420 $ 10,793 $ 10,537 Other segments 508 386 961 739 Total segment profits 6,121 5,806 11,754 11,276 Other profits 43 93 186 320 Unallocated: Interest income 96 78 194 157 Interest expense (193 ) (171 ) (375 ) (343 ) Equity income from affiliates 5 (6 ) (7 ) 14 Depreciation and amortization (332 ) (438 ) (702 ) (864 ) Research and development (1,527 ) (1,833 ) (3,126 ) (3,206 ) Amortization of purchase accounting adjustments (779 ) (1,027 ) (1,557 ) (2,161 ) Restructuring costs (166 ) (134 ) (317 ) (225 ) Other unallocated, net (829 ) (864 ) (1,608 ) (1,840 ) $ 2,439 $ 1,504 $ 4,442 $ 3,128

Acquisitions, Divestitures, R33

Acquisitions, Divestitures, Research Collaborations and License Agreements - Collaborative Arrangements Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			6 Months Ended
	Jul. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Research and development			$ 1,749	$ 2,151	$ 3,545	$ 3,810
Subsequent event | AstraZeneca
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront and milestone payments made to collaborative partner	$ 1,600
Payments to acquire intangible assets	750
Maximum amount of contingent payments collaborative arrangement	6,150
Total consideration from collaborative arrangement (up to value)	$ 8,500
Period of notice for agreement termination	180 days
Forecast | AstraZeneca
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Research and development		$ 2,350

Acquisitions, Divestitures, R34

Acquisitions, Divestitures, Research Collaborations and License Agreements - Acquisitions Narrative (Details) - USD ($)	1 Months Ended				6 Months Ended
	Jul. 31, 2017	Mar. 31, 2017	Jun. 30, 2016	Jan. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items]
Goodwill					$ 18,358,000,000		$ 18,162,000,000
Contingent consideration			$ 661,000,000		1,002,000,000	$ 661,000,000	$ 891,000,000	$ 590,000,000
Contingent milestone payment					$ 0	$ 25,000,000
Vallee SA
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items]
Percentage of business acquired (as percent)		93.50%
Cash paid for acquisition of business		$ 358,000,000
Escrow deposit		176,000,000
Intangible assets		297,000,000
Deferred tax liabilities noncurrent		95,000,000
Other net assets		1,000,000
Noncontrolling interest		25,000,000
Contingent liabilities		37,000,000
Indemnification assets		37,000,000
Goodwill		$ 180,000,000
Discount rate (as percent)		15.50%
Acquired finite-lived intangible assets, weighted average useful life		15 years
Moderna Therapeutics
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items]
Upfront and milestone payments made to collaborative partner			$ 200,000,000
IOmet Pharma Ltd
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items]
Cash paid for acquisition of business				$ 150,000,000
Goodwill				$ 57,000,000
Discount rate (as percent)				10.50%
Amount of potential future additional payments for milestones, maximum				$ 250,000,000
Contingent consideration				94,000,000
In-process research and development (IPR&D)				155,000,000
Deferred tax assets noncurrent				$ 32,000,000
Subsequent event | IOmet Pharma Ltd
Acquisitions Divestitures Research Collaborations And License Agreements Transactions [Line Items]
Contingent milestone payment	$ 100,000,000

Acquisitions, Divestitures, R35

Acquisitions, Divestitures, Research Collaborations and License Agreements - Divestitures Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Acquisitions, Divestitures, Research Collaborations and License Agreements Transactions [Line Items]
Proceeds from sale of marketing rights	$ 50	$ 75
corticotropin marketing rights
Acquisitions, Divestitures, Research Collaborations and License Agreements Transactions [Line Items]
Proceeds from sale of marketing rights		$ 75

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)position	Jun. 30, 2016USD ($)position	Jun. 30, 2017USD ($)position	Jun. 30, 2016USD ($)position
Restructuring and Related Activities [Abstract]
Total pretax restructuring costs	$ 210	$ 351	$ 425	$ 547
Cumulative restructuring costs incurred to date since program inception	$ 13,000		$ 13,000
Positions eliminated since inception of program (in positions) | position	41,920		41,920
Estimated remaining costs related to restructuring program activities	$ 300		$ 300
Percentage estimate of cumulative pretax costs that will result in cash outlays (primarily from employee separation expense) (as percent)			66.67%
Percentage estimate of cumulative pretax costs that will be non-cash (primarily from accelerated depreciation of facilities) (as percent)			33.33%
Number of positions eliminated | position	475	585	1,020	1,055

Restructuring - Charges Related

Restructuring - Charges Related to Restructuring Program Activities by Type of Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	$ 210	$ 351	$ 425	$ 547
Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	118	85	202	111
Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	6	97	55	177
Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	86	169	168	259
Materials and production
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	33	66	96	113
Materials and production | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0	0	0
Materials and production | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	(4)	29	47	51
Materials and production | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	37	37	49	62
Marketing and administrative
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	2	87	3	90
Marketing and administrative | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0	0	0
Marketing and administrative | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	2	4	2	7
Marketing and administrative | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	83	1	83
Research and development
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	9	64	9	119
Research and development | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0	0	0
Research and development | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	8	64	6	119
Research and development | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	1	0	3	0
Restructuring costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	166	134	317	225
Restructuring costs | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	118	85	202	111
Restructuring costs | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0	0	0
Restructuring costs | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	$ 48	$ 49	$ 115	$ 114

Restructuring - Charges and Spe

Restructuring - Charges and Spending Relating to Restructuring Activities by Program (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 541
Expense	$ 210	$ 351	425	$ 547
(Payments) receipts, net			(401)
Non-cash activity			(5)
Restructuring reserve, ending balance	560		560
Separation Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			395
Expense	118	85	202	111
(Payments) receipts, net			(167)
Non-cash activity			0
Restructuring reserve, ending balance	430		430
Accelerated Depreciation
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			0
Expense	6	97	55	177
(Payments) receipts, net			0
Non-cash activity			(55)
Restructuring reserve, ending balance	0		0
Other
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			146
Expense	86	$ 169	168	$ 259
(Payments) receipts, net			(234)
Non-cash activity			50
Restructuring reserve, ending balance	$ 130		$ 130

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)interest_rate_swap	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Derivative [Line Items]
Pretax losses from euro-denominated notes included in cumulative translation adjustments	$ 339	$ 29
Number of interest rate swaps held (in interest rate swaps) | interest_rate_swap	26
Pretax net unrealized loss on derivatives maturing within next 12 months estimated to be reclassified from AOCI to sales	$ 50
Available-for-sale debt securities included in Short-term investments	4,200
Available-for-sale debt securities maturing after one year through five years	10,800
Cash and cash equivalents	7,786	$ 6,608	$ 6,515	$ 8,524
Fair value of loans payable and long-term debt, including current portion	26,000		25,700
Carrying value of loans payable and long-term debt, including current portion	24,900		24,800
Accounts receivable outstanding for more than one year	160
Cash collateral received from counterparties	65		$ 529
Significant Other Observable Inputs (Level 2)
Derivative [Line Items]
Cash and cash equivalents	7,800
Cash equivalents	$ 6,700
Derivatives Designated as Hedging Instruments | Maximum
Derivative [Line Items]
Maximum average period of maturities of contracts in years (less than)	2 years
Derivatives Not Designated as Hedging Instruments | Maximum
Derivative [Line Items]
Maximum average period of maturities of contracts in years (less than)	1 year

Financial Instruments - Summary

Financial Instruments - Summary of Interest Rate Swaps Held (Details)	Jun. 30, 2017USD ($)interest_rate_swap	Dec. 31, 2016USD ($)
Derivative [Line Items]
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	26
Total Swap Notional Amount	$ 24,896,000,000	$ 25,539,000,000
1.30% notes due 2018 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	1.30%
Par Value of Debt	$ 1,000,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	4
Total Swap Notional Amount	$ 1,000,000,000
5.00% notes due 2019 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	5.00%
Par Value of Debt	$ 1,250,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	3
Total Swap Notional Amount	$ 550,000,000
1.85% notes due 2020 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	1.85%
Par Value of Debt	$ 1,250,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	5
Total Swap Notional Amount	$ 1,250,000,000
3.875% notes due 2021 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	3.875%
Par Value of Debt	$ 1,150,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	5
Total Swap Notional Amount	$ 1,150,000,000
2.40% notes due 2022 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	2.40%
Par Value of Debt	$ 1,000,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	4
Total Swap Notional Amount	$ 1,000,000,000
2.35% notes due 2022 | Interest rate swap contracts
Derivative [Line Items]
Stated interest rate (as percent)	2.35%
Par Value of Debt	$ 1,250,000,000
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap	5
Total Swap Notional Amount	$ 1,250,000,000

Financial Instruments - Fair Va

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 (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 340	$ 995
Fair Value of Derivative, Liability	201	134
U.S. Dollar Notional	24,896	25,539
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	206	765
Fair Value of Derivative, Liability	81	31
U.S. Dollar Notional	13,503	14,398
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	134	230
Fair Value of Derivative, Liability	120	103
U.S. Dollar Notional	11,393	11,141
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	21	20
U.S. Dollar Notional	2,700	2,700
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	4	0
U.S. Dollar Notional	1,000	0
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	19	29
U.S. Dollar Notional	2,500	3,500
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	31	129
U.S. Dollar Notional	1,388	2,075
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	154	616
U.S. Dollar Notional	4,223	6,063
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	58	1
U.S. Dollar Notional	1,692	48
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other noncurrent liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	0	1
U.S. Dollar Notional	0	12
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	134	230
U.S. Dollar Notional	5,586	8,210
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Accrued and other current liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	120	103
U.S. Dollar Notional	$ 5,807	$ 2,931

Financial Instruments - Informa

Financial Instruments - Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts recognized in the consolidated balance sheet, asset	$ 340	$ 995
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, asset	(132)	(131)
Cash collateral received, asset	(65)	(529)
Net amounts, asset	143	335
Gross amounts recognized in the consolidated balance sheet, liability	201	134
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, liability	(132)	(131)
Cash collateral received, liability	0	0
Net amounts, liability	$ 69	$ 3

Financial Instruments - Locatio

Financial Instruments - Location and Pretax Gain or Loss Amounts for Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, net hedge ineffectiveness (gain) loss	$ (2)	$ (1)	$ (3)	$ (4)
Interest rate swap contracts | Derivatives designated in a fair value hedging relationship
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in Other (income) expense, net on derivatives	(22)	(48)	(7)	(198)
Amount of loss recognized in Other (income) expense, net on hedged item	20	47	4	194
Foreign exchange contracts | Derivatives not designated in a hedging relationship
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in Other (income) expense, net on derivatives	(3)	(140)	(49)	(116)
Foreign exchange contracts | Derivatives designated in foreign currency cash flow hedging relationships
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain reclassified from AOCI to Sales	(49)	(65)	(144)	(207)
Amount of loss recognized in OCI on derivatives	$ 169	$ 75	$ 432	$ 242

Financial Instruments - Infor44

Financial Instruments - Information on Available-for-sale Investments (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 17,139	$ 20,179
Amortized Cost	17,054	20,158
Gross Unrealized Gains	123	89
Gross Unrealized Losses	(38)	(68)
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Fair Value	1,607	4,330
Amortized Cost	1,607	4,330
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Corporate notes and bonds
Schedule of Available-for-sale Securities [Line Items]
Fair Value	10,469	10,577
Amortized Cost	10,460	10,601
Gross Unrealized Gains	28	15
Gross Unrealized Losses	(19)	(39)
U.S. government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	2,009	2,232
Amortized Cost	2,018	2,244
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(9)	(13)
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	1,399	1,376
Amortized Cost	1,399	1,380
Gross Unrealized Gains	2	1
Gross Unrealized Losses	(2)	(5)
Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	710	796
Amortized Cost	714	801
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(5)	(6)
Foreign government bonds
Schedule of Available-for-sale Securities [Line Items]
Fair Value	569	519
Amortized Cost	571	521
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	(2)
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	376	349
Amortized Cost	285	281
Gross Unrealized Gains	92	71
Gross Unrealized Losses	$ (1)	$ (3)

Financial Instruments - Financi

Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Assets
Investments	$ 17,139	$ 20,179
Derivative assets	340	995
Liabilities
Contingent consideration	1,002	891	$ 661	$ 590
Derivative liabilities	201	134
Commercial paper
Assets
Investments	1,607	4,330
Corporate notes and bonds
Assets
Investments	10,469	10,577
U.S. government and agency securities
Assets
Investments	2,009	2,232
Asset-backed securities
Assets
Investments	$ 1,399	1,376
Liabilities
Primary weighted average life of collateral	5 years
Mortgage-backed securities
Assets
Investments	$ 710	796
Foreign government bonds
Assets
Investments	569	519
Equity securities
Assets
Investments	376	349
Fair Value, Measurements, Recurring
Assets
Investments	16,319	19,242
Other assets	820	937
Derivative assets	340	995
Total assets	17,479	21,174
Liabilities
Contingent consideration	1,002	891
Derivative liabilities	201	134
Total liabilities	1,203	1,025
Fair Value, Measurements, Recurring | Purchased currency options
Assets
Derivative assets	180	644
Liabilities
Derivative liabilities	0	12
Fair Value, Measurements, Recurring | Foreign exchange contracts
Assets
Derivative assets	139	331
Liabilities
Derivative liabilities	178	93
Fair Value, Measurements, Recurring | Interest rate swap contracts
Assets
Derivative assets	21	20
Liabilities
Derivative liabilities	23	29
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	280	230
Other assets	163	148
Derivative assets	0	0
Total assets	443	378
Liabilities
Contingent consideration	0	0
Derivative liabilities	0	0
Total liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Purchased currency options
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Foreign exchange contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Assets
Investments	16,039	19,012
Other assets	657	789
Derivative assets	340	995
Total assets	17,036	20,796
Liabilities
Contingent consideration	0	0
Derivative liabilities	201	134
Total liabilities	201	134
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Purchased currency options
Assets
Derivative assets	180	644
Liabilities
Derivative liabilities	0	12
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts
Assets
Derivative assets	139	331
Liabilities
Derivative liabilities	178	93
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap contracts
Assets
Derivative assets	21	20
Liabilities
Derivative liabilities	23	29
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Derivative assets	0	0
Total assets	0	0
Liabilities
Contingent consideration	1,002	891
Derivative liabilities	0	0
Total liabilities	1,002	891
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Purchased currency options
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Commercial paper
Assets
Investments	1,607	4,330
Fair Value, Measurements, Recurring | Commercial paper | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	0	0
Fair Value, Measurements, Recurring | Commercial paper | Significant Other Observable Inputs (Level 2)
Assets
Investments	1,607	4,330
Fair Value, Measurements, Recurring | Commercial paper | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Fair Value, Measurements, Recurring | Corporate notes and bonds
Assets
Investments	10,305	10,389
Other assets	164	188
Fair Value, Measurements, Recurring | Corporate notes and bonds | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Corporate notes and bonds | Significant Other Observable Inputs (Level 2)
Assets
Investments	10,305	10,389
Other assets	164	188
Fair Value, Measurements, Recurring | Corporate notes and bonds | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | U.S. government and agency securities
Assets
Investments	1,716	1,919
Other assets	293	313
Fair Value, Measurements, Recurring | U.S. government and agency securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	67	29
Other assets	0	0
Fair Value, Measurements, Recurring | U.S. government and agency securities | Significant Other Observable Inputs (Level 2)
Assets
Investments	1,649	1,890
Other assets	293	313
Fair Value, Measurements, Recurring | U.S. government and agency securities | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Asset-backed securities
Assets
Investments	1,314	1,257
Other assets	85	119
Fair Value, Measurements, Recurring | Asset-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Other Observable Inputs (Level 2)
Assets
Investments	1,314	1,257
Other assets	85	119
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Mortgage-backed securities
Assets
Investments	596	628
Other assets	114	168
Fair Value, Measurements, Recurring | Mortgage-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Mortgage-backed securities | Significant Other Observable Inputs (Level 2)
Assets
Investments	596	628
Other assets	114	168
Fair Value, Measurements, Recurring | Mortgage-backed securities | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Foreign government bonds
Assets
Investments	568	518
Other assets	1	1
Fair Value, Measurements, Recurring | Foreign government bonds | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Foreign government bonds | Significant Other Observable Inputs (Level 2)
Assets
Investments	568	518
Other assets	1	1
Fair Value, Measurements, Recurring | Foreign government bonds | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Equity securities
Assets
Investments	213	201
Other assets	163	148
Fair Value, Measurements, Recurring | Equity securities | Quoted Prices In Active Markets for Identical Assets (Level 1)
Assets
Investments	213	201
Other assets	163	148
Fair Value, Measurements, Recurring | Equity securities | Significant Other Observable Inputs (Level 2)
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Equity securities | Significant Unobservable Inputs (Level 3)
Assets
Investments	0	0
Other assets	$ 0	$ 0

Financial Instruments - Infor46

Financial Instruments - Information About Changes in Liabilities for Contingent Consideration (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration, Liability, Current		$ 308
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 1,002	891	$ 590
Changes in fair value		108	19
Additions		3	77
Payments		0	(25)
Fair value, ending balance		$ 1,002	$ 661
Subsequent event | IOmet Pharma Ltd
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Payments	$ (100)

Inventories - Inventories (Deta

Inventories - Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 1,396	$ 1,304
Raw materials and work in process	4,654	4,222
Supplies	175	155
Total (approximates current cost)	6,225	5,681
Increase to LIFO costs	258	302
Total current and noncurrent inventories	6,483	5,983
Recognized as:
Inventories	5,407	4,866
Other Assets	$ 1,076	$ 1,117

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Inventories classified in Other assets	$ 1,076	$ 1,117
Inventories Not Expected to be Sold Within One Year
Inventory [Line Items]
Inventories classified in Other assets	1,000	1,000
Inventories Produced in Preparation for Product Launches
Inventory [Line Items]
Inventories classified in Other assets	$ 80	$ 80

Other Intangibles - Finite-Live

Other Intangibles - Finite-Lived Intangible Assets Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment charges related to finite-lived intangible assets		$ 95		$ 347
Other Intangibles, Net	$ 16,119		$ 16,119		$ 17,305
Intron A
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment charges related to finite-lived intangible assets	47		47
Other Intangibles, Net	$ 25		$ 25
Zontivity
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment charges related to finite-lived intangible assets				$ 252

Other Intangibles - Indefinite-

Other Intangibles - Indefinite-Lived Intangible Assets Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Indefinite-lived Intangible Assets [Line Items]
In-process research and development impairment charges	$ 195	$ 220
House Dust Mite
Indefinite-lived Intangible Assets [Line Items]
In-process research and development impairment charges	$ 112	$ 112

Contingencies - Fosamax Litigat

Contingencies - Fosamax Litigation - Narrative (Details) - Fosamax $ in Millions	1 Months Ended			6 Months Ended
	Jul. 31, 2014USD ($)	Mar. 31, 2014legalmatter	Dec. 31, 2013USD ($)legalmatter	Jun. 30, 2017legalmatter	Jul. 31, 2015legalmatter	Nov. 30, 2013legalmatter
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				4,180
ONJ Litigation
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				15
Litigation settlement amount to other party | $	$ 27.3		$ 27.7
Number of claims settled (in legal matters)			1,200
Percentage of participation in litigation settlement (as percent)	95.00%
Femur Fracture Litigation
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				4,165
Femur Fracture Litigation | Federal
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				520
Loss contingency, claims dismissed, number (in legal matters)		650		540
Loss contingency, claims on appeal, number (in legal matters)				515
Femur Fracture Litigation | New Jersey state court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				2,820
Loss contingency, initial cases selected for review, number (in legal matters)				30
Loss contingency, subsequent cases selected for review, number (in legal matters)		50			25	50
Femur Fracture Litigation | California state court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				280
Loss contingency, initial cases selected for review, number (in legal matters)		10
Femur Fracture Litigation | Other state courts
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)				5

Contingencies - Januvia_Janumet

Contingencies - Januvia/Janumet Litigation - Narrative (Details) - Januvia - legalmatter	1 Months Ended
	Nov. 30, 2015	Jun. 30, 2017
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)		1,215
Loss contingency, claims dismissed, number (in legal matters)	1,175
Cases Company Agreed ToToll Statute Of Limitations
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)		50
Other state courts
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)		8
Other state courts | Illinois state court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)		4
Loss contingency, cases scheduled for trial (in legal matters)		3

Contingencies - Propecia_Prosca

Contingencies - Propecia/Proscar Litigation - Narrative (Details) - Propecia/Proscar	6 Months Ended
	Jun. 30, 2017legalmatterPlaintiff
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)	1,190
Other state courts | California state court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)	1
Other state courts | Ohio state court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)	1
Other state courts | Massachusetts Supreme Judicial court
Loss Contingencies [Line Items]
Loss contingency, pending claims, number (in legal matters)	1
Cases alleging cancer
Loss Contingencies [Line Items]
Number of plaintiffs | Plaintiff	40

Contingencies Contingencies - C

Contingencies Contingencies - Commercial and Other Litigation - Narrative (Details) - Commercial and Other Litigation $ in Millions	Apr. 29, 2016legalmatter	Feb. 28, 2017USD ($)	Jan. 31, 2014legalmatter	Jun. 30, 2017legalmatter
Loss Contingencies [Line Items]
Litigation settlement amount to other party | $		$ 80
Loss contingency, new claims filed, number (in legal matters)	1		4
Loss contingency, pending claims, number (in legal matters)				700

Contingencies - Patent Litigati

Contingencies - Patent Litigation - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		12 Months Ended	36 Months Ended	84 Months Ended
	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2026	Dec. 31, 2023
Anti-PD-1 Antibody Patent Case
Loss Contingencies [Line Items]
Payment under settlement and license agreement			$ 625
Anti-PD-1 Antibody Patent Case | Forecast
Loss Contingencies [Line Items]
Royalty rate (as percent)				2.50%	6.50%
Gilead Patent Case
Loss Contingencies [Line Items]
Percentage of settlement to be paid to third-party (as percent)		20.00%
Amount awarded to company	$ 2,540	$ 200

Contingencies - Legal Defense R

Contingencies - Legal Defense Reserves - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Legal Defense Costs
Loss Contingencies [Line Items]
Legal defense costs reserve	$ 175	$ 185

Equity - Shareholders' Equity (

Equity - Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, beginning balance (in shares)			3,577,103,522
Equity, beginning balance			$ 40,308	$ 44,767
Net income attributable to Merck & Co., Inc.	$ 1,946	$ 1,205	3,496	2,330
Other comprehensive income, net of taxes			132	62
Cash dividends declared on common stock			(2,583)	(2,557)
Treasury stock shares purchased			(2,153)	(1,573)
Share-based compensation plans and other			483	419
Acquisition of Vallée			25
Net income attributable to noncontrolling interests	$ 5	4	11	9
Distributions attributable to noncontrolling interests			$ (7)	(11)
Shares, ending balance (in shares)	3,577,103,522		3,577,103,522
Equity, ending balance	$ 39,712	$ 43,446	$ 39,712	$ 43,446
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, beginning balance (in shares)			3,577,000,000	3,577,000,000
Equity, beginning balance			$ 1,788	$ 1,788
Shares, ending balance (in shares)	3,577,000,000	3,577,000,000	3,577,000,000	3,577,000,000
Equity, ending balance	$ 1,788	$ 1,788	$ 1,788	$ 1,788
Other Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance			39,939	40,222
Share-based compensation plans and other			(163)	(311)
Equity, ending balance	39,776	39,911	39,776	39,911
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance			44,133	45,348
Net income attributable to Merck & Co., Inc.			3,496	2,330
Cash dividends declared on common stock			(2,583)	(2,557)
Equity, ending balance	45,046	45,121	45,046	45,121
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance			(5,226)	(4,148)
Other comprehensive income, net of taxes			132	62
Equity, ending balance	$ (5,094)	$ (4,086)	$ (5,094)	$ (4,086)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, beginning balance (in shares)			828,000,000	796,000,000
Equity, beginning balance			$ (40,546)	$ (38,534)
Treasury stock shares purchased (in shares)			34,000,000	30,000,000
Treasury stock shares purchased			$ (2,153)	$ (1,573)
Share-based compensation plans and other (in shares)			(12,000,000)	(15,000,000)
Share-based compensation plans and other			$ 646	$ 730
Shares, ending balance (in shares)	850,000,000	811,000,000	850,000,000	811,000,000
Equity, ending balance	$ (42,053)	$ (39,377)	$ (42,053)	$ (39,377)
Non- Controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance			220	91
Acquisition of Vallée			25
Net income attributable to noncontrolling interests			11	9
Distributions attributable to noncontrolling interests			(7)	(11)
Equity, ending balance	$ 249	$ 89	$ 249	$ 89

Share-Based Compensation Plan58

Share-Based Compensation Plans - Amounts of Share-Based Compensation Cost Recorded in Consolidated Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Pretax share-based compensation expense	$ 82	$ 80	$ 156	$ 148
Income tax benefit	(25)	(25)	(47)	(45)
Total share-based compensation expense, net of taxes	$ 57	$ 55	$ 109	$ 103

Share-Based Compensation Plan59

Share-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
RSUs granted (in shares)	5	5
Weighted-average fair value per RSU granted (in dollars per share)	$ 63.97	$ 54.54
Options granted (in shares)	4	6
Weighted- average exercise price of options granted in period (in dollars per share)	$ 63.98	$ 54.61
Weighted- average fair value per option granted (in dollars per share)	$ 7.05	$ 5.89
Total pretax unrecognized compensation expense related to nonvested stock options	$ 633
Weighted average period in years of recognition for nonvested stock options	2 years 2 months 12 days

Share-Based Compensation Plan60

Share-Based Compensation Plans - Assumptions Used to Determine Weighted-Average Fair Value of Options Granted (Details)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	3.60%	3.80%
Risk-free interest rate	2.00%	1.40%
Expected volatility	17.90%	19.60%
Expected life (years)	6 years 1 month 6 days	6 years 2 months 12 days

Pension and Other Postretirem61

Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 14	$ 13	$ 28	$ 27
Interest cost	20	21	40	42
Expected return on plan assets	(20)	(34)	(39)	(69)
Amortization of unrecognized prior service credit	(24)	(26)	(49)	(53)
Termination benefits	0	0	1	1
Curtailments	(2)	(1)	(5)	(2)
Net periodic benefit cost	(12)	(27)	(24)	(54)
International | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	63	62	124	120
Interest cost	42	52	83	105
Expected return on plan assets	(97)	(97)	(191)	(193)
Amortization of unrecognized prior service credit	(3)	(3)	(5)	(6)
Net loss amortization	24	21	47	43
Termination benefits	1	0	2	0
Curtailments	(1)	0	(1)	1
Net periodic benefit cost	29	35	59	70
U.S. | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	77	73	154	146
Interest cost	113	113	226	226
Expected return on plan assets	(218)	(210)	(436)	(420)
Amortization of unrecognized prior service credit	(13)	(14)	(27)	(27)
Net loss amortization	44	29	89	57
Termination benefits	3	1	8	5
Curtailments	1	0	4	0
Net periodic benefit cost	$ 7	$ (8)	$ 18	$ (13)

Other (Income) Expense, Net (De

Other (Income) Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Income and Expenses [Abstract]
Interest income	$ (96)	$ (78)	$ (194)	$ (157)
Interest expense	193	171	375	343
Exchange losses	19	37	11	76
Equity (income) loss from affiliates	(5)	(4)	8	(38)
Other, net	(53)	(107)	(83)	(157)
Other (income) expense, net	$ 58	$ 19	$ 117	$ 67

Other (Income) Expense, Net - N

Other (Income) Expense, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Component of Other Income / Expense of Nonoperating [Line Items]
Interest paid		$ 343	$ 321
Patent litigation [Member]
Component of Other Income / Expense of Nonoperating [Line Items]
Gain (Loss) Related to Litigation Settlement	$ 115		$ 115

Taxes on Income - Narrative (De

Taxes on Income - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate	20.00%	19.60%	21.00%	25.20%
Tax benefit related to settlement of state income tax issue	$ 88		$ 88

Earnings Per Share - Calculatio

Earnings Per Share - Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income Attributable to Merck & Co., Inc.	$ 1,946	$ 1,205	$ 3,496	$ 2,330
Average common shares outstanding (in shares)	2,734	2,768	2,739	2,771
Common shares issuable (in shares)	18	21	20	21
Average common shares outstanding assuming dilution (in shares)	2,752	2,789	2,759	2,792
Basic earnings per common share attributable to Merck & Co., Inc. common shareholders (in dollars per share)	$ 0.71	$ 0.44	$ 1.28	$ 0.84
Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders (in dollars per share)	$ 0.71	$ 0.43	$ 1.27	$ 0.83

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Common shares issuable under share-based compensation plans excluded from diluted earnings per common share because the effect would have been antidilutive (in shares)	5	13	4	12

Other Comprehensive Income (L67

Other Comprehensive Income (Loss) - Changes in AOCI by Component (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance			$ 40,308	$ 44,767
Other comprehensive income (loss), net of taxes	$ (14)	$ 108	132	62
Equity, ending balance	39,712	43,446	39,712	43,446
Derivatives
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	106	202	338	404
Other comprehensive income (loss) before reclassification adjustments, pretax	(169)	(75)	(432)	(242)
Tax	59	27	151	85
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(110)	(48)	(281)	(157)
Reclassification adjustments, pretax	(50)	(66)	(145)	(209)
Tax	17	23	51	73
Reclassification adjustments, net of taxes	(33)	(43)	(94)	(136)
Other comprehensive income (loss), net of taxes	(143)	(91)	(375)	(293)
Equity, ending balance	(37)	111	(37)	111
Investments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	40	104	(3)	41
Other comprehensive income (loss) before reclassification adjustments, pretax	26	76	113	130
Tax	3	(5)	(4)	11
Other comprehensive income (loss) before reclassification adjustments, net of taxes	29	71	109	141
Reclassification adjustments, pretax	8	(10)	(49)	(21)
Tax	(2)	2	18	6
Reclassification adjustments, net of taxes	6	(8)	(31)	(15)
Other comprehensive income (loss), net of taxes	35	63	78	126
Equity, ending balance	75	167	75	167
Employee Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(3,180)	(2,435)	(3,206)	(2,407)
Other comprehensive income (loss) before reclassification adjustments, pretax	29	(183)	25	(218)
Tax	(3)	68	6	67
Other comprehensive income (loss) before reclassification adjustments, net of taxes	26	(115)	31	(151)
Reclassification adjustments, pretax	27	7	55	14
Tax	(6)	0	(13)	1
Reclassification adjustments, net of taxes	21	7	42	15
Other comprehensive income (loss), net of taxes	47	(108)	73	(136)
Equity, ending balance	(3,133)	(2,543)	(3,133)	(2,543)
Cumulative Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(2,046)	(2,065)	(2,355)	(2,186)
Other comprehensive income (loss) before reclassification adjustments, pretax	(25)	255	238	354
Tax	72	(11)	118	11
Other comprehensive income (loss) before reclassification adjustments, net of taxes	47	244	356	365
Reclassification adjustments, pretax	0	0	0	0
Tax	0	0	0	0
Reclassification adjustments, net of taxes	0	0	0	0
Other comprehensive income (loss), net of taxes	47	244	356	365
Equity, ending balance	(1,999)	(1,821)	(1,999)	(1,821)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(5,080)	(4,194)	(5,226)	(4,148)
Other comprehensive income (loss) before reclassification adjustments, pretax	(139)	73	(56)	24
Tax	131	79	271	174
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(8)	152	215	198
Reclassification adjustments, pretax	(15)	(69)	(139)	(216)
Tax	9	25	56	80
Reclassification adjustments, net of taxes	(6)	(44)	(83)	(136)
Other comprehensive income (loss), net of taxes	(14)	108	132	62
Equity, ending balance	$ (5,094)	$ (4,086)	$ (5,094)	$ (4,086)

Segment Reporting - Sales of Co

Segment Reporting - Sales of Company's Products (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,930	$ 9,844	$ 19,365	$ 19,156
Proceeds from sale of marketing rights			50	75
corticotropin marketing rights
Segment Reporting Information [Line Items]
Proceeds from sale of marketing rights				75
Operating Segments
Segment Reporting Information [Line Items]
Sales	9,815	9,680	19,033	18,689
Operating Segments | Total Pharmaceutical segment sales
Segment Reporting Information [Line Items]
Sales	8,759	8,700	16,944	16,804
Operating Segments | Total Pharmaceutical segment sales | Zetia
Segment Reporting Information [Line Items]
Sales	367	702	701	1,314
Operating Segments | Total Pharmaceutical segment sales | Vytorin
Segment Reporting Information [Line Items]
Sales	182	293	423	570
Operating Segments | Total Pharmaceutical segment sales | Atozet
Segment Reporting Information [Line Items]
Sales	63	33	112	56
Operating Segments | Total Pharmaceutical segment sales | Adempas
Segment Reporting Information [Line Items]
Sales	67	40	151	72
Operating Segments | Total Pharmaceutical segment sales | Januvia
Segment Reporting Information [Line Items]
Sales	948	1,064	1,787	1,970
Operating Segments | Total Pharmaceutical segment sales | Janumet
Segment Reporting Information [Line Items]
Sales	563	569	1,059	1,075
Operating Segments | Total Pharmaceutical segment sales | NuvaRing
Segment Reporting Information [Line Items]
Sales	199	200	359	376
Operating Segments | Total Pharmaceutical segment sales | Implanon/Nexplanon
Segment Reporting Information [Line Items]
Sales	178	164	349	298
Operating Segments | Total Pharmaceutical segment sales | Follistim AQ
Segment Reporting Information [Line Items]
Sales	79	73	160	167
Operating Segments | Total Pharmaceutical segment sales | Zepatier
Segment Reporting Information [Line Items]
Sales	517	112	895	161
Operating Segments | Total Pharmaceutical segment sales | Isentress/Isentress HD
Segment Reporting Information [Line Items]
Sales	282	338	587	678
Operating Segments | Total Pharmaceutical segment sales | Bridion
Segment Reporting Information [Line Items]
Sales	163	113	310	204
Operating Segments | Total Pharmaceutical segment sales | Noxafil
Segment Reporting Information [Line Items]
Sales	155	143	296	288
Operating Segments | Total Pharmaceutical segment sales | Invanz
Segment Reporting Information [Line Items]
Sales	150	143	286	257
Operating Segments | Total Pharmaceutical segment sales | Cancidas
Segment Reporting Information [Line Items]
Sales	112	131	233	263
Operating Segments | Total Pharmaceutical segment sales | Cubicin
Segment Reporting Information [Line Items]
Sales	103	357	198	649
Operating Segments | Total Pharmaceutical segment sales | Primaxin
Segment Reporting Information [Line Items]
Sales	71	81	133	154
Operating Segments | Total Pharmaceutical segment sales | Remicade
Segment Reporting Information [Line Items]
Sales	208	339	437	688
Operating Segments | Total Pharmaceutical segment sales | Simponi
Segment Reporting Information [Line Items]
Sales	199	199	383	387
Operating Segments | Total Pharmaceutical segment sales | Keytruda
Segment Reporting Information [Line Items]
Sales	881	314	1,465	563
Operating Segments | Total Pharmaceutical segment sales | Emend
Segment Reporting Information [Line Items]
Sales	143	143	276	268
Operating Segments | Total Pharmaceutical segment sales | Temodar
Segment Reporting Information [Line Items]
Sales	65	73	130	139
Operating Segments | Total Pharmaceutical segment sales | Singulair
Segment Reporting Information [Line Items]
Sales	203	229	389	465
Operating Segments | Total Pharmaceutical segment sales | Nasonex
Segment Reporting Information [Line Items]
Sales	85	101	224	331
Operating Segments | Total Pharmaceutical segment sales | Dulera
Segment Reporting Information [Line Items]
Sales	69	121	151	234
Operating Segments | Total Pharmaceutical segment sales | Cozaar/Hyzaar
Segment Reporting Information [Line Items]
Sales	119	132	231	258
Operating Segments | Total Pharmaceutical segment sales | Arcoxia
Segment Reporting Information [Line Items]
Sales	89	117	192	228
Operating Segments | Total Pharmaceutical segment sales | Fosamax
Segment Reporting Information [Line Items]
Sales	66	73	127	148
Operating Segments | Total Pharmaceutical segment sales | Gardasil/Gardasil 9
Segment Reporting Information [Line Items]
Sales	469	393	1,001	770
Operating Segments | Total Pharmaceutical segment sales | ProQuad/M-M-R II/Varivax
Segment Reporting Information [Line Items]
Sales	399	383	754	739
Operating Segments | Total Pharmaceutical segment sales | RotaTeq
Segment Reporting Information [Line Items]
Sales	123	130	347	318
Operating Segments | Total Pharmaceutical segment sales | Pneumovax 23
Segment Reporting Information [Line Items]
Sales	166	120	329	228
Operating Segments | Total Pharmaceutical segment sales | Zostavax
Segment Reporting Information [Line Items]
Sales	160	149	313	274
Operating Segments | Total Pharmaceutical segment sales | Other Pharmaceutical
Segment Reporting Information [Line Items]
Sales	1,116	1,128	2,156	2,214
Operating Segments | Other segment sales
Segment Reporting Information [Line Items]
Sales	1,056	980	2,089	1,885
Other
Segment Reporting Information [Line Items]
Sales	$ 115	$ 164	$ 332	$ 467

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Segment Profits to Income Before Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Profits	$ 2,439	$ 1,504	$ 4,442	$ 3,128
Interest income	96	78	194	157
Interest expense	(193)	(171)	(375)	(343)
Equity income from affiliates	5	4	(8)	38
Depreciation and amortization			(2,355)	(3,111)
Research and development	(1,749)	(2,151)	(3,545)	(3,810)
Restructuring costs	(166)	(134)	(317)	(225)
Total segment profits
Segment Reporting Information [Line Items]
Profits	6,121	5,806	11,754	11,276
Total segment profits | Pharmaceutical segment
Segment Reporting Information [Line Items]
Profits	5,613	5,420	10,793	10,537
Total segment profits | Other segments
Segment Reporting Information [Line Items]
Profits	508	386	961	739
Other profits
Segment Reporting Information [Line Items]
Profits	43	93	186	320
Unallocated
Segment Reporting Information [Line Items]
Interest income	96	78	194	157
Interest expense	(193)	(171)	(375)	(343)
Equity income from affiliates	5	(6)	(7)	14
Depreciation and amortization	(332)	(438)	(702)	(864)
Research and development	(1,527)	(1,833)	(3,126)	(3,206)
Amortization of purchase accounting adjustments	(779)	(1,027)	(1,557)	(2,161)
Restructuring costs	(166)	(134)	(317)	(225)
Other unallocated, net	$ (829)	$ (864)	$ (1,608)	$ (1,840)