Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-6571 | |
Entity Registrant Name | Merck & Co., Inc. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1918501 | |
Entity Address, Address Line One | 2000 Galloping Hill Road | |
Entity Address, City or Town | Kenilworth | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07033 | |
City Area Code | (908) | |
Local Phone Number | 740-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,560,374,643 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000310158 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock ($0.50 par value) | |
Trading Symbol | MRK | |
Security Exchange Name | NYSE | |
1.125% Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Notes due 2021 | |
Trading Symbol | MRK/21 | |
Security Exchange Name | NYSE | |
0.500% Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes due 2024 | |
Trading Symbol | MRK 24 | |
Security Exchange Name | NYSE | |
1.875% Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.875% Notes due 2026 | |
Trading Symbol | MRK/26 | |
Security Exchange Name | NYSE | |
2.500% Notes due 2034 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.500% Notes due 2034 | |
Trading Symbol | MRK/34 | |
Security Exchange Name | NYSE | |
1.375% Notes due 2036 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2036 | |
Trading Symbol | MRK 36A | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 11,760 | $ 10,465 | $ 22,575 | $ 20,502 |
Costs, Expenses and Other | ||||
Cost of sales | 3,401 | 3,417 | 6,453 | 6,601 |
Selling, general and administrative | 2,712 | 2,508 | 5,138 | 5,016 |
Research and development | 2,189 | 2,274 | 4,119 | 5,470 |
Restructuring costs | 59 | 228 | 212 | 323 |
Other (income) expense, net | 140 | (48) | 327 | (340) |
Total Costs, Expenses and Other | 8,501 | 8,379 | 16,249 | 17,070 |
Income Before Taxes | 3,259 | 2,086 | 6,326 | 3,432 |
Taxes on Income | 615 | 370 | 820 | 975 |
Net Income | 2,644 | 1,716 | 5,506 | 2,457 |
Less: Net (Loss) Income Attributable to Noncontrolling Interests | (26) | 9 | (79) | 14 |
Net Income Attributable to Merck & Co., Inc. | $ 2,670 | $ 1,707 | $ 5,585 | $ 2,443 |
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) | $ 1.04 | $ 0.64 | $ 2.17 | $ 0.91 |
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share) | $ 1.03 | $ 0.63 | $ 2.15 | $ 0.90 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income Attributable to Merck & Co., Inc. | $ 2,670 | $ 1,707 | $ 5,585 | $ 2,443 |
Other Comprehensive (Loss) Income Net of Taxes: | ||||
Net unrealized (loss) gain on derivatives, net of reclassifications | (52) | 266 | (100) | 196 |
Net unrealized gain (loss) on investments, net of reclassifications | 44 | 3 | 126 | (96) |
Benefit plan net gain and prior service credit, net of amortization | 11 | 30 | 26 | 66 |
Cumulative translation adjustment | (19) | (361) | 131 | (104) |
Other comprehensive income (loss), net of taxes | (16) | (62) | 183 | 62 |
Comprehensive Income Attributable to Merck & Co., Inc. | $ 2,654 | $ 1,645 | $ 5,768 | $ 2,505 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 6,659 | $ 7,965 |
Short-term investments | 446 | 899 |
Accounts receivable (net of allowance for doubtful accounts of $122 in 2019 and $119 in 2018) | 7,964 | 7,071 |
Inventories (excludes inventories of $1,464 in 2019 and $1,417 in 2018 classified in Other assets - see Note 6) | 5,847 | 5,440 |
Other current assets | 3,382 | 4,500 |
Total current assets | 24,298 | 25,875 |
Investments | 3,779 | 6,233 |
Property, Plant and Equipment, at cost, net of accumulated depreciation of $17,049 in 2019 and $16,324 in 2018 | 13,862 | 13,291 |
Goodwill | 19,490 | 18,253 |
Other Intangibles, Net | 13,381 | 11,431 |
Other Assets | 9,155 | 7,554 |
Total Assets | 83,965 | 82,637 |
Current Liabilities | ||
Loans payable and current portion of long-term debt | 3,816 | 5,308 |
Trade accounts payable | 3,142 | 3,318 |
Accrued and other current liabilities | 11,054 | 10,151 |
Income taxes payable | 634 | 1,971 |
Dividends payable | 1,439 | 1,458 |
Total current liabilities | 20,085 | 22,206 |
Long-Term Debt | 22,771 | 19,806 |
Deferred Income Taxes | 2,089 | 1,702 |
Other Noncurrent Liabilities | 11,283 | 12,041 |
Merck & Co., Inc. Stockholders’ Equity | ||
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2019 and 2018 | 1,788 | 1,788 |
Other paid-in capital | 39,484 | 38,808 |
Retained earnings | 45,295 | 42,579 |
Accumulated other comprehensive loss | (5,362) | (5,545) |
Stockholders' equity before deduction for treasury stock | 81,205 | 77,630 |
Less treasury stock, at cost: 1,010,308,500 shares in 2019 and 984,543,979 shares in 2018 | 53,570 | 50,929 |
Total Merck & Co., Inc. stockholders’ equity | 27,635 | 26,701 |
Noncontrolling Interests | 102 | 181 |
Total equity | 27,737 | 26,882 |
Liabilities and Equity | $ 83,965 | $ 82,637 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 122 | $ 119 |
Inventories classified in Other assets | 1,464 | 1,417 |
Accumulated depreciation | $ 17,049 | $ 16,324 |
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) | 1,010,308,500 | 984,543,979 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,506 | $ 2,457 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,871 | 2,427 |
Intangible asset impairment charges | 252 | 0 |
Charge for future payments related to collaboration license options | 0 | 650 |
Deferred income taxes | (149) | (258) |
Share-based compensation | 204 | 170 |
Other | 114 | 365 |
Net changes in assets and liabilities | (3,378) | (1,274) |
Net Cash Provided by Operating Activities | 4,420 | 4,537 |
Cash Flows from Investing Activities | ||
Capital expenditures | (1,377) | (1,033) |
Purchases of securities and other investments | (1,810) | (5,248) |
Proceeds from sales of securities and other investments | 4,935 | 7,403 |
Acquisition of Antelliq Corporation, net of cash acquired | (3,620) | 0 |
Other acquisitions, net of cash acquired | (270) | (372) |
Other | 85 | (274) |
Net Cash (Used in) Provided by Investing Activities | (2,057) | 476 |
Cash Flows from Financing Activities | ||
Net change in short-term borrowings | (3,532) | 2,069 |
Payments on debt | 0 | (3,008) |
Proceeds from issuance of debt | 4,958 | 0 |
Purchases of treasury stock | (2,325) | (2,162) |
Dividends paid to stockholders | (2,896) | (2,610) |
Proceeds from exercise of stock options | 304 | 299 |
Other | (207) | (277) |
Net Cash Used in Financing Activities | (3,698) | (5,689) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 28 | (108) |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (1,307) | (784) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes restricted cash of $2 million at January 1, 2019 included in Other Assets) | 7,967 | 6,096 |
Cash, Cash Equivalents and Restricted Cash at End of Period (includes restricted cash of $1 million at June 30, 2019 included in Other Assets) | $ 6,660 | $ 5,312 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 1 | $ 2 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 27, 2019. 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. Recently Adopted Accounting Standards In February 2016, the FASB issued new accounting guidance for the accounting and reporting of leases (ASU 2016-02) and subsequently issued several updates to the new guidance (ASC 842 or new guidance). The new guidance requires that lessees recognize a right-of-use asset and a lease liability 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 previous operating leases), while finance leases will result in more expense being recognized in the earlier years of the lease term (similar to previous capital leases). The Company adopted the new standard on January 1, 2019 using a modified retrospective approach. Merck elected the transition method that allows for application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected available practical expedients. Upon adoption, the Company recognized $1.1 billion of additional assets and related liabilities on its consolidated balance sheet (see Note 7). The adoption of the new guidance did not impact the Company’s consolidated statements of income or cash flows. Recently Issued Accounting Standards Not Yet Adopted 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, including adoption in any interim period. 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 is currently evaluating the impact of adoption on its consolidated financial statements. In April 2018, the FASB issued new guidance on the accounting for costs incurred to implement a cloud computing arrangement that is considered a service arrangement. The new guidance requires the capitalization of such costs, aligning it with the accounting for costs associated with developing or obtaining internal-use software. The new guidance is effective for interim and annual periods beginning in 2020. Early adoption is permitted, including adoption in any interim period. Prospective adoption for eligible costs incurred on or after the date of adoption or retrospective adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In November 2018, the FASB issued new guidance for collaborative arrangements intended to reduce diversity in practice by clarifying whether certain transactions between collaborative arrangement participants should be accounted for under revenue recognition guidance (ASC 606). The new guidance is effective for interim and annual periods beginning in 2020. Early adoption is permitted, including adoption in any interim period. The new guidance is to be applied on a retrospective basis through a cumulative-effect adjustment directly to retained earnings. The Company does not anticipate the adoption of this standard will have a material effect on its consolidated financial statements. |
Acquisitions, Research Collabor
Acquisitions, Research Collaborations and License Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Research Collaborations and License Agreements | Acquisitions, Research Collaborations and License Agreements The Company continues to pursue acquisitions and the 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 2019, Merck acquired Peloton Therapeutics, Inc. (Peloton), a clinical-stage biopharmaceutical company focused on the development of novel small molecule therapeutic candidates targeting hypoxia-inducible factor-2α (HIF-2α) for the treatment of patients with cancer and other non-oncology diseases. Peloton’s lead candidate, MK-6482 (formerly PT2977), is a novel oral HIF-2α inhibitor in late-stage development for renal cell carcinoma. Merck made an upfront payment of $1.05 billion in cash; additionally, former Peloton shareholders will be eligible to receive up to an additional $1.15 billion contingent upon successful achievement of future regulatory and sales-based milestones. The acquisition will be accounted for as an acquisition of an asset. On April 1, 2019, Merck acquired Antelliq Corporation (Antelliq), a leader in digital animal identification, traceability and monitoring solutions. These solutions help veterinarians, farmers and pet owners gather critical data to improve management, health and well-being of livestock and pets. Merck paid $2.3 billion to acquire all outstanding shares of Antelliq and spent $1.3 billion to repay Antelliq’s debt. The transaction was accounted for as an acquisition of a business. The estimated fair value of assets acquired and liabilities assumed from Antelliq is as follows: ($ in millions) April 1, 2019 Cash and cash equivalents $ 31 Accounts receivable 73 Inventories 97 Property, plant and equipment 62 Identifiable intangible assets (useful lives ranging from 18-24 years) (1) 2,689 Deferred income tax liabilities (563 ) Other assets and liabilities, net (81 ) Total identifiable net assets 2,308 Goodwill (2) 1,343 Consideration transferred $ 3,651 (1) The estimated fair values of identifiable intangible assets relate primarily to trade names and were determined using an income approach. The future net cash flows were discounted to present value utilizing a discount rate of 11.5% . Actual cash flows are likely to be different than those assumed. (2) The goodwill recognized is largely attributable to anticipated synergies expected to arise after the acquisition and was allocated to the Animal Health segment. The goodwill is not deductible for tax purposes. The Company’s results for the second quarter of 2019 include two months of activity for Antelliq. The Company incurred $47 million of transaction costs directly related to the acquisition of Antelliq, consisting largely of advisory fees, which are reflected in Selling, general and administrative expenses in the second quarter of 2019. Also in April 2019, Merck acquired Immune Design, a late-stage immunotherapy company employing next-generation in vivo approaches to enable the body’s immune system to fight disease, for $301 million in cash. The transaction was accounted for as an acquisition of a business. Merck recognized intangible assets for in-process research and development (IPR&D) of $156 million , cash of $83 million and other net assets of $31 million . The excess of the consideration transferred over the fair value of net assets acquired of $31 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. Actual cash flows are likely to be different than those assumed. In June 2018, Merck acquired Viralytics Limited (Viralytics), an Australian publicly traded company focused on oncolytic immunotherapy treatments for a range of cancers, for AUD 502 million ( $378 million ). The transaction provided Merck with full rights to Cavatak (V937, formerly CVA21), Viralytics’s investigational oncolytic immunotherapy. Cavatak is based on Viralytics’s proprietary formulation of an oncolytic virus (Coxsackievirus Type A21) that has been shown to preferentially infect and kill cancer cells. Cavatak is currently being evaluated in multiple Phase 1 and Phase 2 clinical trials, both as an intratumoral and intravenous agent, including in combination with Keytruda . Under a previous agreement between Merck and Viralytics, a study is investigating the use of the Keytruda and Cavatak combination in melanoma, prostate, lung and bladder cancers. The transaction was accounted for as an acquisition of an asset. Merck recorded net assets of $34 million (primarily cash) at the acquisition date and Research and development expenses of $344 million in the second quarter and first six months of 2018 related to the transaction. There are no future contingent payments associated with the acquisition. |
Collaborative Arrangements
Collaborative Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Collaborative Arrangements [Abstract] | |
Collaborative Arrangements | Collaborative Arrangements Merck has entered into collaborative arrangements that provide the Company with varying rights to develop, produce and market products together with its collaborative partners. Both parties in these arrangements are active participants and exposed to significant risks and rewards dependent on the commercial success of the activities of the collaboration. Merck’s more significant collaborative arrangements are discussed below. AstraZeneca In July 2017, Merck and AstraZeneca PLC (AstraZeneca) entered into a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca’s Lynparza for multiple cancer types. Lynparza is an oral poly (ADP-ribose) polymerase (PARP) inhibitor currently approved for certain types of ovarian and breast cancer. The companies are jointly developing and commercializing 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 and Imfinzi. 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. 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 are 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. AstraZeneca is the principal on Lynparza sales transactions. Merck records its share of Lynparza product sales, net of cost of sales and 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 costs. Reimbursements received from AstraZeneca for research and development expenses are recognized as reductions to Research and development costs. As part of the agreement, Merck made an upfront payment to AstraZeneca of $1.6 billion in 2017 and will make payments of up to $750 million over a multi-year period for certain license options (of which $250 million was paid in December 2017, $400 million was paid in December 2018 and $100 million is expected to be paid in December 2019). The Company recorded an aggregate charge of $2.35 billion in Research and development expenses in 2017 related to the upfront payment and future license option payments. In addition, the agreement provides for additional contingent payments from Merck to AstraZeneca related to the successful achievement of sales-based and regulatory milestones. In the second quarter of 2019, Merck determined it was probable that annual sales of Lynparza in the future would trigger a $300 million sales-based milestone payment from Merck to AstraZeneca. Accordingly, in the second quarter of 2019, Merck recorded a $300 million liability and a corresponding increase to the intangible asset related to Lynparza and also recognized $52 million of cumulative amortization expense within Cost of sales . Prior to 2019, Merck accrued sales-based milestone payments aggregating $700 million related to Lynparza. Of these amounts, $250 million has been paid to AstraZeneca. Potential future sales-based milestone payments of $3.1 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. In April 2019, Lynparza received regulatory approval in the European Union (EU) as a monotherapy for the treatment of certain adult patients with advanced breast cancer, triggering a $30 million capitalized milestone payment from Merck to AstraZeneca. In June 2019, Lynparza received regulatory approval in the EU as a monotherapy for the maintenance treatment of certain adult patients with BRCA -mutated advanced ovarian cancer, triggering a $30 million capitalized milestone payment from Merck to AstraZeneca. In 2018, Lynparza received regulatory approvals triggering capitalized milestone payments of $140 million in the aggregate from Merck to AstraZeneca. Potential future regulatory milestone payments of $1.7 billion remain under the agreement. The asset balance related to Lynparza (which includes capitalized sales-based and regulatory milestone payments) was $1.0 billion at June 30, 2019 and is included in Other Assets on the Consolidated Balance Sheet. The amount is being amortized over its estimated useful life through 2028 as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Alliance revenue $ 111 $ 44 $ 190 $ 76 Cost of sales (1) 73 24 92 36 Selling, general and administrative 33 9 59 16 Research and development 33 42 78 71 ($ in millions) June 30, 2019 December 31, 2018 Receivables from AstraZeneca included in Other current assets $ 105 $ 52 Payables to AstraZeneca included in Accrued and other current liabilities (2) 605 405 Payables to AstraZeneca included in Other Noncurrent Liabilities (3) 300 250 (1) Represents amortization of capitalized milestone payments. (2) Includes accrued milestone and license option payments. (3) Includes accrued milestone payments. Eisai In March 2018, Merck and Eisai announced a strategic collaboration for the worldwide co-development and co-commercialization of Lenvima, an orally available tyrosine kinase inhibitor discovered by Eisai. Under the agreement, Merck and Eisai will develop and commercialize Lenvima jointly, both as monotherapy and in combination with Merck’s anti-PD-1 therapy, Keytruda . Eisai records Lenvima product sales globally (Eisai is the principal on Lenvima sales transactions), and Merck and Eisai share gross profits equally. Merck records its share of Lenvima product sales, net of cost of sales and commercialization costs, as alliance revenue. Expenses incurred during co-development, including for studies evaluating Lenvima as monotherapy, are shared equally by the two companies and reflected in Research and development costs. Under the agreement, Merck made an upfront payment to Eisai of $750 million and will make payments of up to $650 million for certain option rights through 2021 (of which $325 million was paid in March 2019, $200 million is expected to be paid in March 2020 and $125 million is expected to be paid in March 2021). The Company recorded an aggregate charge of $1.4 billion in Research and development expenses in the first quarter of 2018 related to the upfront payment and future option payments. In addition, the agreement provides for Eisai to receive up to $385 million associated with the achievement of certain clinical and regulatory milestones and up to $3.97 billion for the achievement of milestones associated with sales of Lenvima. In the first quarter of 2019, Merck determined it was probable that annual sales of Lenvima in the future would trigger $282 million of sales-based milestone payments from Merck to Eisai. Accordingly, in the first quarter of 2019, Merck recorded $282 million of liabilities and corresponding increases to the intangible asset related to Lenvima and also recognized $35 million of cumulative amortization expense within Cost of sales . Merck previously accrued sales-based milestone payments aggregating $268 million related to Lenvima in 2018. Of these amounts, $50 million has been paid to Eisai. Potential future sales-based milestone payments of $3.42 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. In 2018, Lenvima received regulatory approvals triggering capitalized milestone payments of $250 million in the aggregate from Merck to Eisai. Potential future regulatory milestone payments of $135 million remain under the agreement. The asset balance related to Lenvima (which includes capitalized sales-based and regulatory milestone payments) was $687 million at June 30, 2019 and is included in Other Assets on the Consolidated Balance Sheet. The amount is being amortized over its estimated useful life through 2026 as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Alliance revenue $ 97 $ 35 $ 171 $ 35 Cost of sales (1) 23 1 74 1 Selling, general and administrative 19 2 38 2 Research and development (2) 62 36 109 1,436 ($ in millions) June 30, 2019 December 31, 2018 Receivables from Eisai included in Other current assets $ 98 $ 71 Payables to Eisai included in Accrued and other current liabilities (3) 709 375 Payables to Eisai included in Other Noncurrent Liabilities (3) 125 543 (1) Represents amortization of capitalized milestone payments. (2) Amount for the first six months of 2018 includes the upfront payment and future option payments. (3) Includes accrued milestone and option payments. Bayer AG In 2014, the Company entered into a worldwide clinical development collaboration with Bayer AG (Bayer) to market and develop soluble guanylate cyclase (sGC) modulators including Bayer’s Adempas, which is approved to treat pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension. The two companies have implemented a joint development and commercialization strategy. The collaboration also includes clinical development of Bayer’s vericiguat, which is in Phase 3 trials for worsening heart failure, as well as opt-in rights for other early-stage sGC compounds in development by Bayer. Merck in turn made available its early-stage sGC compounds under similar terms. Under the agreement, Bayer leads commercialization of Adempas in the Americas, while Merck leads commercialization in the rest of the world. For vericiguat and other potential opt-in products, Bayer will lead commercialization in the rest of world and Merck will lead in the Americas. For all products and candidates included in the agreement, both companies will share in development costs and profits on sales and will have the right to co-promote in territories where they are not the lead. Revenue from Adempas includes sales in Merck’s marketing territories, as well as Merck’s share of profits from the sale of Adempas in Bayer’s marketing territories. In the first quarter of 2018, Merck made a $350 million sales-based milestone payment to Bayer, which was accrued for in 2016 when Merck deemed the payment to be probable. In the second quarter of 2018, Merck determined it was probable that annual worldwide sales of Adempas in the future would trigger a $375 million sales-based milestone payment from Merck to Bayer; accordingly, Merck recorded a $375 million liability and a corresponding increase to the intangible asset related to Adempas and also recognized $106 million of cumulative amortization expense within Cost of sales . There is an additional $400 million potential future sales-based milestone payment that has not yet been accrued as it is not deemed by the Company to be probable at this time. The intangible asset balance related to Adempas (which includes the acquired intangible asset balance, as well as capitalized sales-based milestone payments) was $956 million at June 30, 2019 and is included in Other Intangibles, Net on the Consolidated Balance Sheet. The amount is being amortized over its estimated useful life through 2027 as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Net product sales recorded by Merck $ 53 $ 47 $ 100 $ 90 Merck’s profit share from sales in Bayer’s marketing territories 51 28 94 53 Total sales 104 75 194 143 Cost of sales (1) 29 132 58 159 Selling, general and administrative 11 10 20 17 Research and development 32 28 62 56 ($ in millions) June 30, 2019 December 31, 2018 Receivables from Bayer included in Other current assets $ 41 $ 32 Payables to Bayer included in Other Noncurrent Liabilities (2) 375 375 (1) Includes amortization of intangible assets. (2) Represents accrued milestone payment. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Merck recently approved a new global restructuring program (2019 Restructuring Program) as part of a worldwide initiative focused primarily on further optimizing the Company’s manufacturing and supply network, as well as reducing its global real estate footprint. This program is a continuation of the Company’s plant rationalization and builds on prior restructuring programs. The Company will continue to evaluate its global footprint and overall operating model, which could result in the identification of additional actions over time. The actions contemplated under the 2019 Restructuring Program are expected to be substantially completed by the end of 2023, with the cumulative pretax costs to be incurred by the Company to implement the program estimated to be approximately $800 million to $1.2 billion . The Company estimates that approximately 55% of the cumulative pretax costs will result in cash outlays, primarily related to employee separation expense and facility shut-down costs. Approximately 45% of the cumulative pretax costs will be non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. The Company expects to record charges of approximately $500 million in 2019 related to the program. Actions under previous global restructuring programs have been substantially completed. The Company recorded total pretax costs of $159 million and $235 million in the second quarter of 2019 and 2018 , respectively, and $346 million and $339 million for the first six months of 2019 and 2018, respectively, related to restructuring program activities. For segment reporting, restructuring charges are unallocated expenses. The following tables summarize the charges related to restructuring program activities by type of cost: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Cost of sales $ — $ 64 $ 1 $ 65 $ — $ 98 $ 1 $ 99 Selling, general and administrative — 32 — 32 — 32 — 32 Research and development — 2 1 3 — 2 1 3 Restructuring costs 25 — 34 59 153 — 59 212 $ 25 $ 98 $ 36 $ 159 $ 153 $ 132 $ 61 $ 346 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Cost of sales $ — $ — $ 3 $ 3 $ — $ — $ 9 $ 9 Selling, general and administrative — — 1 1 — 1 1 2 Research and development — — 3 3 — (3 ) 8 5 Restructuring costs 200 — 28 228 255 — 68 323 $ 200 $ — $ 35 $ 235 $ 255 $ (2 ) $ 86 $ 339 Separation costs are associated with actual headcount reductions, as well as those headcount reductions which were probable and could be reasonably estimated. 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 the sites have and will continue to operate up through the respective closure dates and, since future undiscounted cash flows are 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 2019 and 2018 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 11) and share-based compensation. The following table summarizes the charges and spending relating to restructuring program activities for the six months ended June 30, 2019 : ($ in millions) Separation Costs Accelerated Depreciation Other Total Restructuring reserves January 1, 2019 $ 443 $ — $ 91 $ 534 Expense 153 132 61 346 (Payments) receipts, net (126 ) — (77 ) (203 ) Non-cash activity — (132 ) (2 ) (134 ) Restructuring reserves June 30, 2019 (1) $ 470 $ — $ 73 $ 543 (1) |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 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. 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 also uses forward exchange contracts to hedge its net investment in foreign operations against movements in exchange rates. The forward contracts are designated as hedges of the net investment in a foreign operation. The Company hedges a portion of the net investment in certain of its foreign operations. The unrealized gains or losses on these contracts are recorded in foreign currency translation adjustment within OCI and remain in AOCI until either the sale or complete or substantially complete liquidation of the subsidiary. The Company excludes certain portions of the change in fair value of its derivative instruments from the assessment of hedge effectiveness (excluded component). Changes in fair value of the excluded components are recognized in OCI . The Company recognizes in earnings the initial value of the excluded component on a straight-line basis over the life of the derivative instrument, rather than using the mark-to-market approach. 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 . The effects of the Company’s net investment hedges on OCI and the Consolidated Statement of Income are shown below: Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1) Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Net Investment Hedging Relationships Foreign exchange contracts $ 17 $ (12 ) $ 7 $ (14 ) $ (8 ) $ (3 ) $ (15 ) $ (3 ) Euro-denominated notes 28 (271 ) (2 ) (92 ) — — — — (1) No amounts were reclassified from AOCI into income related to the sale of a subsidiary. 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, 2019 , the Company was a party to 19 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. June 30, 2019 ($ in millions) Par Value of Debt Number of Interest Rate Swaps Held Total Swap Notional Amount 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 along with the offsetting 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. The table below presents the location of amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount ($ in millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Balance Sheet Line Item in which Hedged Item is Included Loans payable and current portion of long-term debt $ 1,244 $ — $ (6 ) $ — Long-Term Debt 3,406 4,560 11 (82 ) 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, 2019 December 31, 2018 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 $ 14 $ — $ 2,150 $ — $ — $ — Interest rate swap contracts Accrued and other current liabilities — 6 1,250 — — — Interest rate swap contracts Other Noncurrent Liabilities — 2 1,250 — 81 4,650 Foreign exchange contracts Other current assets 168 — 6,389 263 — 6,222 Foreign exchange contracts Other Assets 49 — 2,790 75 — 2,655 Foreign exchange contracts Accrued and other current liabilities — 13 1,252 — 7 774 Foreign exchange contracts Other Noncurrent Liabilities — — — — 1 89 $ 231 $ 21 $ 15,081 $ 338 $ 89 $ 14,390 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Other current assets $ 70 $ — $ 6,665 $ 116 $ — $ 5,430 Foreign exchange contracts Accrued and other current liabilities — 63 4,982 — 71 9,922 $ 70 $ 63 $ 11,647 $ 116 $ 71 $ 15,352 $ 301 $ 84 $ 26,728 $ 454 $ 160 $ 29,742 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, 2019 December 31, 2018 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 301 $ 84 $ 454 $ 160 Gross amounts subject to offset in master netting arrangements not offset in the consolidated balance sheet (69 ) (69 ) (121 ) (121 ) Cash collateral received (32 ) — (107 ) — Net amounts $ 200 $ 15 $ 226 $ 39 The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value or cash flow hedging relationships: Sales Other (income) expense, net (1) Other comprehensive income (loss) Sales Other (income) expense, net (1) Other comprehensive income (loss) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded $ 11,760 $ 10,465 $ 140 (48 ) $ (16 ) $ (62 ) 22,575 $ 20,502 $ 327 $ (340 ) $ 183 $ 62 (Gain) loss on fair value hedging relationships Interest rate swap contracts Hedged items — — 55 (15 ) — — — — 88 (77 ) — — Derivatives designated as hedging instruments — — (45 ) 22 — — — — (68 ) 84 — — Impact of cash flow hedging relationships Foreign exchange contracts Amount of income (loss) recognized in OCI on derivatives — — — — 10 264 — — — — (2 ) 84 Increase (decrease) in Sales as a result of AOCI reclassifications 75 (73 ) — — (75 ) 73 119 (166 ) — — (119 ) 166 Interest rate contracts Amount of gain recognized in Other (income) expense, net on derivatives — — (1 ) (1 ) — — — — (2 ) (2 ) — — Amount of loss recognized in OCI on derivatives — — — — (1 ) (1 ) — — — — (5 ) (2 ) (1) Interest expense is a component of Other (income) expense, net. The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments: Amount of Derivative Pretax (Gain) Loss Recognized in Income Three Months Ended June 30, Six Months Ended June 30, ($ in millions) Income Statement Caption 2019 2018 2019 2018 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts (1) Other (income) expense, net $ 2 $ (195 ) $ 120 $ (167 ) Foreign exchange contracts (2) Sales (6 ) (14 ) 4 (5 ) (1) These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. (2) These derivative contracts serve as economic hedges of forecasted transactions. At June 30, 2019 , the Company estimates $76 million of pretax net unrealized gains on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCI to Sales . The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity. Investments in Debt and Equity Securities Information on investments in debt and equity securities is as follows: June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value ($ in millions) Gains Losses Gains Losses Corporate notes and bonds $ 2,666 $ 36 $ (2 ) $ 2,700 $ 4,985 $ 3 $ (68 ) $ 4,920 Asset-backed securities 789 4 (1 ) 792 1,285 1 (11 ) 1,275 U.S. government and agency securities 575 10 — 585 895 2 (5 ) 892 Foreign government bonds 41 — — 41 167 — (1 ) 166 Mortgage-backed securities 5 — — 5 8 — — 8 Total debt securities $ 4,076 $ 50 $ (3 ) $ 4,123 $ 7,340 $ 6 $ (85 ) $ 7,261 Publicly traded equity securities (1) 756 456 Total debt and publicly traded equity securities $ 4,879 $ 7,717 (1) Unrealized net (losses) gains recognized in Other (income) expense, net on equity securities still held at June 30, 2019 were $(39) million and $7 million , for the second quarter of 2019 and 2018 , respectively, and were $75 million and $50 million for the first six months of 2019 and 2018 , respectively. At June 30, 2019 , the Company also had $465 million of equity investments without readily determinable fair values included in Other Assets . During the first six months of 2019 , the Company recognized unrealized gains of $4 million on certain of these equity investments recorded in Other (income) expense, net based on favorable observable price changes from transactions involving similar investments of the same investee. In addition, during the first six months of 2019, the Company recognized unrealized losses of $10 million in Other (income) expense, net related to certain of these investments based on unfavorable observable price changes. Since January 1, 2018, cumulative unrealized gains and cumulative unrealized losses based on observable prices changes for investments in equity investments without readily determinable fair values were $172 million and $21 million , respectively. Available-for-sale debt securities included in Short-term investments totaled $398 million at June 30, 2019 . Of the remaining debt securities, $3.4 billion mature within five years. At June 30, 2019 and December 31, 2018 , 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, 2019 December 31, 2018 Assets Investments Corporate notes and bonds $ — $ 2,660 $ — $ 2,660 $ — $ 4,835 $ — $ 4,835 Asset-backed securities (1) — 788 — 788 — 1,253 — 1,253 U.S. government and agency securities — 508 — 508 — 731 — 731 Foreign government bonds — 41 — 41 — 166 — 166 Publicly traded equity securities 228 — — 228 147 — — 147 228 3,997 — 4,225 147 6,985 — 7,132 Other assets (2) U.S. government and agency securities 58 19 — 77 55 106 — 161 Corporate notes and bonds — 40 — 40 — 85 — 85 Mortgage-backed securities — 5 — 5 — 8 — 8 Asset-backed securities (1) — 4 — 4 — 22 — 22 Publicly traded equity securities 528 — — 528 309 — — 309 586 68 — 654 364 221 — 585 Derivative assets (3) Purchased currency options — 158 — 158 — 213 — 213 Forward exchange contracts — 129 — 129 — 241 — 241 Interest rate swaps — 14 — 14 — — — — — 301 — 301 — 454 — 454 Total assets $ 814 $ 4,366 $ — $ 5,180 $ 511 $ 7,660 $ — $ 8,171 Liabilities Other liabilities Contingent consideration $ — $ — $ 753 $ 753 $ — $ — $ 788 $ 788 Derivative liabilities (3) Forward exchange contracts — 73 — 73 — 74 — 74 Interest rate swaps — 8 — 8 — 81 — 81 Written currency options — 3 — 3 — 5 — 5 — 84 — 84 — 160 — 160 Total liabilities $ — $ 84 $ 753 $ 837 $ — $ 160 $ 788 $ 948 (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. (2) Investments included in other assets are restricted as to use, primarily for the payment of benefits under employee benefit plans. (3) 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 2019 . As of June 30, 2019 , Cash and cash equivalents of $6.7 billion included $5.9 billion of cash equivalents (which would be considered Level 2 in the fair value hierarchy). Contingent Consideration Summarized information about the changes in liabilities for contingent consideration is as follows: Six Months Ended June 30, ($ in millions) 2019 2018 Fair value January 1 $ 788 $ 935 Changes in estimated fair value (1) 50 122 Additions — 8 Payments (85 ) (235 ) Fair value June 30 (2) $ 753 $ 830 (1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net . Includes cumulative translation adjustments. (2) Balance at June 30, 2019 includes $114 million recorded as a current liability for amounts expected to be paid within the next 12 months. The payments of contingent consideration in both periods include payments related to liabilities recorded in connection with the 2016 termination of the Sanofi-Pasteur MSD joint venture. The payments of contingent consideration in the first six months of 2018 also include $175 million related to the achievement of a clinical development milestone for MK-7264 (gefapixant), a program obtained in connection with the acquisition of Afferent Pharmaceuticals. 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, 2019 , was $28.6 billion compared with a carrying value of $26.6 billion and at December 31, 2018 , was $25.6 billion compared with a carrying value of $25.1 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 global economic conditions, including the volatility associated with international sovereign economies, and associated impacts on the financial markets and its business. 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. Cash received by the Company from various counterparties was $32 million and $107 million at June 30, 2019 and December 31, 2018 , respectively. The obligation to return such collateral is recorded in Accrued and other current liabilities . No cash collateral was advanced by the Company to counterparties as of June 30, 2019 or December 31, 2018 . |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of: ($ in millions) June 30, 2019 December 31, 2018 Finished goods $ 1,750 $ 1,658 Raw materials and work in process 5,388 5,004 Supplies 202 194 Total (approximates current cost) 7,340 6,856 (Decrease) increase to LIFO costs (29 ) 1 $ 7,311 $ 6,857 Recognized as: Inventories $ 5,847 $ 5,440 Other assets 1,464 1,417 Amounts recognized as Other assets are comprised almost entirely of raw materials and work in process inventories. At June 30, 2019 and December 31, 2018 , these amounts included $1.3 billion and $1.4 billion , respectively, of inventories not expected to be sold within one year. In addition, these amounts included $118 million and $7 million at June 30, 2019 and December 31, 2018 , respectively, of inventories produced in preparation for product launches. |
Loans Payable, Long-Term Debt a
Loans Payable, Long-Term Debt and Leases | 6 Months Ended |
Jun. 30, 2019 | |
Loans Payable, Long-Term Debt and Leases [Abstract] | |
Loans Payable, Long-Term Debt and Leases | Loans Payable, Long-Term Debt and Leases Long-Term Debt In March 2019, the Company issued $5.0 billion principal amount of senior unsecured notes consisting of $750 million of 2.90% notes due 2024, $1.75 billion of 3.40% notes due 2029, $1.0 billion of 3.90% notes due 2039, and $1.5 billion of 4.00% notes due 2049. The Company used the net proceeds from the offering of $5.0 billion for general corporate purposes, including the repayment of outstanding commercial paper borrowings. Leases As discussed in Note 1, on January 1, 2019, Merck adopted new guidance for the accounting and reporting of leases. The Company has operating leases primarily for manufacturing facilities, research and development facilities, corporate offices, employee housing, vehicles and certain equipment. As permitted under the transition guidance in ASC 842, the Company elected a package of practical expedients which, among other provisions, allowed the Company to carry forward historical lease classifications. The Company determines if an arrangement is a lease at inception. When evaluating contracts for embedded leases, the Company exercises judgment to determine if there is an explicit or implicit identified asset in the contract and if Merck controls the use of that asset. Embedded leases, primarily associated with contract manufacturing organizations, are immaterial. Under ASC 842 transition guidance, Merck elected the hindsight practical expedient to determine the lease term for existing leases, which permits companies to consider available information prior to the effective date of the new guidance as to the actual or likely exercise of options to extend or terminate the lease. The lease term includes options to extend or terminate the lease when it is reasonably certain that Merck will exercise that option. Real estate leases for facilities have an average remaining lease term of eight years , which include options to extend the leases for up to four years where applicable. Vehicle leases are generally in effect for four years . The Company has made an accounting policy election not to record short-term leases (leases with an initial term of 12 months or less) on the balance sheet; however, Merck currently has no short-term leases. Lease expense for operating lease payments is recognized on a straight-line basis over the term of the lease. Operating lease assets and liabilities are recognized based on the present value of lease payments over the lease term. Since most of the Company’s leases do not have a readily determinable implicit discount rate, the Company uses its incremental borrowing rate to calculate the present value of lease payments. As a practical expedient, the Company has made an accounting policy election not to separate lease components (e.g. payments for rent, real estate taxes and insurance costs) from non-lease components (e.g. common-area maintenance costs) in the event that the agreement contains both. Merck includes both the lease and non-lease components for purposes of calculating the right-of-use asset and related lease liability (if the non-lease components are fixed). For vehicle leases and employee housing, the Company applies a portfolio approach to effectively account for the operating lease assets and liabilities. Certain of the Company’s lease agreements contain variable lease payments that are adjusted periodically for inflation or for actual operating expense true-ups compared with estimated amounts; however, these amounts are immaterial. Sublease income and activity related to sale and leaseback transactions are immaterial. Merck’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease cost was $82 million and $165 million for the second quarter and first six months of 2019, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $65 million and $138 million for the second quarter and first six months of 2019, respectively. Supplemental balance sheet information related to operating leases is as follows: ($ in millions) June 30, 2019 Assets Other Assets (1) $ 1,063 Liabilities Accrued and other current liabilities $ 241 Other Noncurrent Liabilities 752 $ 993 Weighted-average remaining lease term (years) 7.5 Weighted-average discount rate 3.4 % (1) Includes prepaid leases that have no related lease liability. Maturities of operating leases liabilities are as follows: ($ in millions) June 30, 2019 2019 (excluding the six months ended June 30, 2019) $ 138 2020 232 2021 172 2022 146 2023 98 Thereafter 339 Total lease payments 1,125 Less: imputed interest (132 ) $ 993 As of June 30, 2019 , the Company had entered into additional real estate operating leases that had not yet commenced. The obligations associated with these leases totaled $127 million , of which $72 million related to a lease that commenced in July 2019 and has a lease term of 10 years. As of December 31, 2018, prior to the adoption of ASC 842, the minimum aggregate rental commitments under noncancellable leases were as follows: 2019, $188 million ; 2020, $198 million ; 2021, $150 million ; 2022, $134 million ; 2023, $84 million and thereafter, $243 million |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 governmental and 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, 2019 , approximately 3,900 cases have been filed and either are pending or conditionally dismissed (as noted below) against Merck in either federal or state court. Plaintiffs in the vast majority of these cases generally allege that they sustained femur fractures and/or other bone injuries (Femur Fractures) in association with the use of Fosamax . In March 2011, Merck submitted a Motion to Transfer to the Judicial Panel on Multidistrict Litigation (JPML) seeking to have all federal cases alleging Femur Fractures consolidated into one multidistrict litigation for coordinated pre-trial proceedings. 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. 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). In March 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. Merck filed a petition for a writ of certiorari to the U.S. Supreme Court in August 2017 seeking review of the Third Circuit’s decision. In December 2017, the Supreme Court invited the Solicitor General to file a brief in the case expressing the views of the United States, and in May 2018, the Solicitor General submitted a brief stating that the Third Circuit’s decision was wrongly decided and recommended that the Supreme Court grant Merck’s cert petition. The Supreme Court granted Merck’s petition in June 2018, and an oral argument before the Supreme Court was held on January 7, 2019. On May 20, 2019, the Supreme Court issued its opinion and decided that the Third Circuit had incorrectly concluded that the issue of preemption should be resolved by a jury, and accordingly vacated the judgment of the Third Circuit and remanded the proceedings back to the Third Circuit to address the issue in a manner consistent with the Supreme Court’s opinion. The Third Circuit has requested, by August 6, 2019, ten page letters from each side addressing two specific issues central to the appeal. Accordingly, as of June 30, 2019 , 11 cases were actively pending in the Femur Fracture MDL, and approximately 1,060 cases have either been dismissed without prejudice or administratively closed pending final resolution by the Supreme Court of the appeal of the Femur Fracture MDL court’s preemption order. As of June 30, 2019 , approximately 2,555 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 cases to be reviewed through fact discovery. Merck has continued to select additional cases to be reviewed through fact discovery from 2016 to the present. As of June 30, 2019 , approximately 275 cases alleging Femur Fractures have been filed and are pending in California state court. All of the Femur Fracture cases filed in California state court have been coordinated before a single judge in Orange County, California. Additionally, there are four Femur Fracture cases pending in other state courts. Discovery is presently stayed in the Femur Fracture MDL and in the state court cases in California. Merck 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, 2019 , Merck is aware of approximately 1,350 product users alleging that Januvia and/or Janumet caused the development of pancreatic cancer and other injuries. Most claims have been filed in multidistrict litigation before the U.S. District Court for the Southern District of California (MDL). Outside of the MDL, the majority of claims have been filed in coordinated proceedings before 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 federal preemption. Plaintiffs appealed in both forums. In November 2017, the U.S. Court of Appeals for the Ninth Circuit vacated the judgment and remanded for further discovery, which is ongoing. In November 2018, the California state appellate court reversed and remanded on similar grounds. In March 2019, the parties in the MDL and the California coordinated proceeding agreed to coordinate and adopt a schedule for completing discovery on general causation and preemption issues and for renewing summary judgment and Daubert motions. Under the stipulated case management schedule, the filing deadline for Daubert and summary judgment motions will take place in May 2020. As of June 30, 2019 , seven product users have claims pending against Merck in state courts other than California, including Illinois. In June 2017, the Illinois trial court denied Merck’s motion for summary judgment based on federal preemption. Merck appealed, and the Illinois appellate court affirmed in December 2018. Merck filed a petition for leave to appeal to the Illinois Supreme Court in February 2019. In April 2019, the Illinois Supreme Court stayed consideration of the pending petition to appeal until the United States Supreme Court issued its opinion in Merck Sharp & Dohme Corp. v. Albrecht , No. 17-290. Merck filed the opinion in Albrecht with the Illinois Supreme Court in June 2019. The petition for leave to appeal remains pending. 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. Governmental Proceedings In the fall of 2018, the Company received a records subpoena from the U.S. Attorney’s Office for the District of Vermont (VT USAO) pursuant to Section 248 of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) relating to an investigation of potential health care offenses. The subpoena sought information relating to any actual or potential business relationship or arrangement Merck has had with Practice Fusion, Inc. (PFI), a cloud-based, electronic health records (EHR) company that was acquired by Allscripts in January 2018. The Company cooperated with the government and responded to that subpoena. Subsequently, on May 21, 2019, Merck received a second records subpoena from the VT USAO that broadened the government’s information request by seeking information relating to Merck’s relationship with any EHR company. Shortly thereafter, the VT USAO served a Civil Investigation Demand (CID) upon Merck similarly seeking information on the Company’s relationships with EHR vendors. The CID explains that the government is conducting a False Claims Act investigation concerning whether Merck and/or PFI submitted claims to federal healthcare programs that violate the Federal Anti-Kickback Statute. Merck is cooperating with the government’s investigation. On April 15, 2019, Merck received a set of investigative interrogatories from the California Attorney General’s Office pursuant to its investigation of conduct and agreements that allegedly affected or delayed competition to Lantus in the insulin market. The interrogatories seek information concerning Merck’s development of an insulin glargine product, and its subsequent termination, as well as Merck’s patent litigation against Sanofi S.A. concerning Lantus and the resolution of that litigation. Merck is cooperating with the California Attorney General’s investigation. As previously disclosed, the Company’s subsidiaries in China have, in the past, received and may continue to receive inquiries regarding their operations from various Chinese governmental agencies. Some of these inquiries may be related to matters involving other multinational pharmaceutical companies, as well as Chinese entities doing business with such companies. The Company’s policy is to cooperate with these authorities and to provide responses as appropriate. As previously disclosed, 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. Commercial and Other Litigation Zetia Antitrust Litigation As previously disclosed, Merck, MSD, Schering Corporation and MSP Singapore Company LLC (collectively, the Merck Defendants) are defendants in putative class action and opt-out lawsuits filed in 2018 on behalf of direct and indirect purchasers of Zetia alleging violations of federal and state antitrust laws, as well as other state statutory and common law causes of action. The cases have been consolidated for pretrial purposes in a federal multidistrict litigation before Judge Rebecca Beach Smith in the Eastern District of Virginia. In December 2018, the court denied the Merck Defendants’ motions to dismiss or stay the direct purchaser putative class actions pending bilateral arbitration. On February 6, 2019, the magistrate judge issued a report and recommendation recommending that the district judge grant in part and deny in part defendants’ motions to dismiss on non-arbitration issues. On February 20, 2019, defendants and retailer opt-out plaintiffs filed objections to the report and recommendation. The parties await a decision from the district judge. Trial is currently scheduled to begin on September 30, 2020. Merck KGaA Litigation As previously disclosed, 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), historically 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 UK, Germany, Switzerland, Mexico, India, Australia, Singapore, Hong Kong, and China alleging, among other things, unfair competition, trademark infringement and/or corporate name infringement. In the UK, Australia, Singapore, Hong Kong, and India, KGaA also alleges breach of the parties’ coexistence agreement. The litigation is ongoing in the United States with no trial date set, and also ongoing in numerous jurisdictions outside of the United States; the Company is defending those suits in each jurisdiction. Patent Litigation From time to time, generic manufacturers of pharmaceutical products file abbreviated New Drug Applications (NDAs) 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. 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. Inegy — The patents protecting Inegy in Europe expired; supplemental protection certificates (SPCs) in many European countries expired in April 2019. The Company filed actions for patent infringement seeking damages against those companies that launched generic products before April 2019. Januvia, Janumet, Janumet XR — In February 2019, Par Pharmaceutical, Inc. (Par Pharmaceutical) filed suit against the Company in the U.S. District Court for the District of New Jersey, seeking a declaratory judgment of invalidity of a patent owned by the Company covering certain salt and polymorphic forms of sitagliptin that expires in 2026. In response, the Company filed a patent infringement lawsuit in the U.S. District Court for the District of Delaware against Par Pharmaceutical and additional companies that also indicated an intent to market generic versions of Januvia , Janumet , and Janumet XR following expiration of key patent protection in 2022, but prior to the expiration of the later-granted patent owned by the Company covering certain salt and polymorphic forms of sitagliptin that expires in 2026, and a later granted patent owned by the Company covering the Janumet formulation which expires in 2028. Par Pharmaceutical dismissed its case in the U.S. District Court for the District of New Jersey against the Company and will litigate the action in the U.S. District Court for the District of Delaware. The Company filed a patent infringement lawsuit against Mylan Pharmaceuticals Inc. and Mylan Inc. (Mylan) in the Northern District of West Virginia. The Company has a pending, unopposed motion before the Judicial Panel of Multidistrict Litigation to transfer the Company’s lawsuit against Mylan to the U.S. District Court for the District of Delaware for coordinated and consolidated pretrial proceedings with the other cases pending in that district. The U.S. District Court for the District of Delaware has scheduled the lawsuits for a single 3-day trial on invalidity issues beginning October 4, 2021. The Court will schedule separate 1-day trials on infringement issues if necessary. Other Litigation There are various other pending legal proceedings involving the Company, principally product liability and intellectual property lawsuits. While it is not feasible to predict the outcome of such proceedings, in the opinion of the Company, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to the Company’s financial position, results of operations or cash flows either individually or in the aggregate. Legal Defense Reserves Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. Some of the significant factors considered in the review of these legal defense reserves are as follows: the actual costs incurred by the Company; the development of the Company’s legal defense strategy and structure in light of the scope of its litigation; the number of cases being brought against the Company; the costs and outcomes of completed trials and the most current information regarding anticipated timing, progression, and related costs of pre-trial activities and trials in the associated litigation. The amount of legal defense reserves as of June 30, 2019 and December 31, 2018 of approximately $260 million and $245 million , respectively, represents the Company’s best estimate of the minimum amount of defense costs to be incurred in connection with its outstanding litigation; however, events such as additional trials and other events that could arise in the course of its litigation could affect the ultimate amount of legal defense costs to be incurred by the Company. The Company will continue to monitor its legal defense costs and review the adequacy of the associated reserves and may determine to increase the reserves at any time in the future if, based upon the factors set forth, it believes it would be appropriate to do so. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity Three Months Ended June 30, Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at April 1, 2018 3,577 $ 1,788 $ 39,874 $ 41,107 $ (5,060 ) 885 $ (44,041 ) $ 233 $ 33,901 Net income attributable to Merck & Co., Inc. — — — 1,707 — — — — 1,707 Other comprehensive loss, net of taxes — — — — (62 ) — — — (62 ) Cash dividends declared on common stock ($0.48 per share) — — — (1,291 ) — — — — (1,291 ) Treasury stock shares purchased — — — — — 27 (1,596 ) — (1,596 ) Share-based compensation plans and other — — (133 ) — — (5 ) 236 — 103 Net income attributable to noncontrolling interests — — — — — — — 9 9 Distributions attributable to noncontrolling interests — — — — — — — (5 ) (5 ) Balance at June 30, 2018 3,577 $ 1,788 $ 39,741 $ 41,523 $ (5,122 ) 907 $ (45,401 ) $ 237 $ 32,766 Balance at April 1, 2019 3,577 $ 1,788 $ 38,768 $ 44,065 $ (5,346 ) 994 $ (51,736 ) $ 131 $ 27,670 Net income attributable to Merck & Co., Inc. — — — 2,670 — — — — 2,670 Other comprehensive loss, net of taxes — — — — (16 ) — — — (16 ) Cash dividends declared on common stock ($0.55 per share) — — — (1,440 ) — — — — (1,440 ) Treasury stock shares purchased — — 1,000 — — 24 (2,235 ) — (1,235 ) Share-based compensation plans and other — — (284 ) — — (8 ) 401 — 117 Net loss attributable to noncontrolling interests — — — — — — — (26 ) (26 ) Other changes in noncontrolling ownership interests — — — — — — — (3 ) (3 ) Balance at June 30, 2019 3,577 $ 1,788 $ 39,484 $ 45,295 $ (5,362 ) 1,010 $ (53,570 ) $ 102 $ 27,737 Six Months Ended June 30, Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at January 1, 2018 3,577 $ 1,788 $ 39,902 $ 41,350 $ (4,910 ) 880 $ (43,794 ) $ 233 $ 34,569 Net income attributable to Merck & Co., Inc. — — — 2,443 — — — — 2,443 Adoption of new accounting standards — — — 322 (274 ) — — — 48 Other comprehensive income, net of taxes — — — — 62 — — — 62 Cash dividends declared on common stock ($0.96 per share) — — — (2,592 ) — — — — (2,592 ) Treasury stock shares purchased — — — — — 37 (2,162 ) — (2,162 ) Share-based compensation plans and other — — (161 ) — — (10 ) 555 — 394 Net income attributable to noncontrolling interests — — — — — — — 14 14 Distributions attributable to noncontrolling interests — — — — — — — (10 ) (10 ) Balance at June 30, 2018 3,577 $ 1,788 $ 39,741 $ 41,523 $ (5,122 ) 907 $ (45,401 ) $ 237 $ 32,766 Balance at January 1, 2019 3,577 $ 1,788 $ 38,808 $ 42,579 $ (5,545 ) 985 $ (50,929 ) $ 181 $ 26,882 Net income attributable to Merck & Co., Inc. — — — 5,585 — — — — 5,585 Other comprehensive income, net of taxes — — — — 183 — — — 183 Cash dividends declared on common stock ($1.10 per share) — — — (2,869 ) — — — — (2,869 ) Treasury stock shares purchased — — 1,000 — — 38 (3,325 ) — (2,325 ) Share-based compensation plans and other — — (324 ) — — (13 ) 684 — 360 Net loss attributable to noncontrolling interests — — — — — — — (79 ) (79 ) Balance at June 30, 2019 3,577 $ 1,788 $ 39,484 $ 45,295 $ (5,362 ) 1,010 $ (53,570 ) $ 102 $ 27,737 On October 25, 2018, the Company entered into accelerated share repurchase (ASR) agreements with two third-party financial institutions (Dealers). Under the ASR agreements, Merck agreed to purchase $5 billion of Merck’s common stock, in total, with an initial delivery of 56.7 million shares of Merck’s common stock, based on the then-current market price, made by the Dealers to Merck, and payments of $5 billion made by Merck to the Dealers on October 29, 2018, which were funded with existing cash and investments, as well as short-term borrowings. The payments to the Dealers were recorded as reductions to shareholders’ equity, consisting of a $4 billion increase in treasury stock, which reflected the value of the initial 56.7 million shares received on October 29, 2018, and a $1 billion decrease in other-paid-in capital, which reflected the value of the stock held back by the Dealers pending final settlement. Upon settlement of the ASR agreements in April 2019, Merck received an additional 7.7 million shares as determined by the average daily volume weighted-average price of Merck’s common stock during the term of the ASR program, less a negotiated discount, bringing the total shares received by Merck under this program to 64.4 million |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company has share-based compensation plans under which the Company grants restricted stock units (RSUs) and performance share units (PSUs) to certain management level employees. In addition, employees and non-employee directors may be granted options to purchase shares of Company common stock at the fair market value at the time of grant. The following table provides the amounts of share-based compensation cost recorded in the Condensed Consolidated Statement of Income: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Pretax share-based compensation expense $ 111 $ 90 $ 204 $ 170 Income tax benefit (15 ) (13 ) (28 ) (28 ) Total share-based compensation expense, net of taxes $ 96 $ 77 $ 176 $ 142 During the first six months of 2019 , the Company granted 6 million RSUs with a weighted-average grant date fair value of $76.31 per RSU and during the first six months of 2018 granted 7 million RSUs with a weighted-average grant date fair value of $58.15 per RSU. During the first six months of 2019 , the Company granted 609 thousand PSUs with a weighted-average grant date fair value of $90.50 per PSU and during the first six months of 2018 granted 855 thousand PSUs with a weighted-average grant date fair value of $56.70 per PSU. During the first six months of 2019 , the Company granted 3 million stock options with a weighted-average exercise price of $80.00 per option and during the first six months of 2018 granted 3 million stock options with a weighted-average exercise price of $57.72 per option. The weighted-average fair value of options granted during the first six months of 2019 and 2018 was $10.63 and $8.19 per option, respectively, and was determined using the following assumptions: Six Months Ended 2019 2018 Expected dividend yield 3.2 % 3.4 % Risk-free interest rate 2.4 % 2.8 % Expected volatility 18.7 % 19.1 % Expected life (years) 5.9 6.1 At June 30, 2019 , there was $800 million of total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards which will be recognized over a weighted-average period of 2.2 years . For segment reporting, share-based compensation costs are unallocated expenses. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. The net periodic benefit cost of such plans consisted of the following components: Three Months Ended Six Months Ended 2019 2018 2019 2018 ($ in millions) U.S. International U.S. International U.S. International U.S. International Service cost $ 74 $ 60 $ 85 $ 58 $ 144 $ 120 $ 168 $ 125 Interest cost 113 44 107 45 228 89 215 91 Expected return on plan assets (205 ) (107 ) (211 ) (108 ) (411 ) (214 ) (425 ) (221 ) Amortization of unrecognized prior service credit (12 ) (3 ) (13 ) (3 ) (25 ) (6 ) (25 ) (7 ) Net loss amortization 35 16 56 21 70 31 112 43 Termination benefits 3 1 7 — 5 1 17 — Curtailments — — 5 (1 ) 1 — 3 (1 ) Settlements — — — 4 — — 1 4 $ 8 $ 11 $ 36 $ 16 $ 12 $ 21 $ 66 $ 34 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 credit of such plans consisted of the following components: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 24 $ 28 Interest cost 18 18 35 35 Expected return on plan assets (18 ) (21 ) (36 ) (41 ) Amortization of unrecognized prior service credit (21 ) (21 ) (43 ) (42 ) Termination benefits — 1 — 2 Curtailments (1 ) (2 ) (1 ) (6 ) $ (10 ) $ (11 ) $ (21 ) $ (24 ) In connection with restructuring actions (see Note 4), 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 and settlements were recorded on pension and other postretirement benefit plans as reflected in the tables above. The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 12), with the exception of certain amounts for termination benefits, curtailments and settlements, which are recorded in Restructuring costs if the event giving rise to the termination benefits, curtailment or settlement is related to restructuring actions as noted above. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 6 Months Ended |
Jun. 30, 2019 | |
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) 2019 2018 2019 2018 Interest income $ (75 ) $ (81 ) $ (164 ) $ (165 ) Interest expense 233 194 442 379 Exchange losses 27 71 128 77 Income from investments in equity securities, net (1) (58 ) (153 ) (32 ) (178 ) Net periodic defined benefit plan (credit) cost other than service cost (140 ) (130 ) (281 ) (265 ) Other, net 153 51 234 (188 ) $ 140 $ (48 ) $ 327 $ (340 ) (1) Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investments funds. The higher exchange losses in the first six months of 2019 reflect losses on forward exchange contracts related to the acquisition of Antelliq. Other, net (as reflected in the table above) in the second quarter and first six months of 2019 includes $78 million and $162 million of goodwill impairment charges related to certain businesses in the Healthcare Services segment. Other, net in the first six months of 2018 includes a $115 million gain on the settlement of certain patent litigation. Interest paid for the six months ended June 30, 2019 and 2018 was $356 million and $341 million , respectively. |
Taxes on Income
Taxes on Income | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The effective income tax rates of 18.9% and 17.8% for the second quarter of 2019 and 2018 , respectively, and 13.0% and 28.4% for the first six months of 2019 and 2018, respectively, reflect the impacts of acquisition and divestiture-related costs and restructuring costs, partially offset by the beneficial impact of foreign earnings. In addition, the effective income tax rate for the first six months of 2019 reflects the favorable impact of a $360 million net tax benefit related to the settlement of certain federal income tax matters (discussed below). The effective income tax rate for the first six months of 2018 reflects the unfavorable impact of a $1.4 billion pretax charge recorded in connection with the formation of a collaboration with Eisai for which no tax benefit was recognized. In the first quarter of 2019, the Internal Revenue Service (IRS) concluded its examinations of Merck’s 2012-2014 U.S. federal income tax returns. As a result, the Company was required to make a payment of $107 million . The Company’s reserves for unrecognized tax benefits for the years under examination exceeded the adjustments relating to this examination period and therefore the Company recorded a $360 million net tax benefit in the first six months of 2019. This net benefit reflects reductions in reserves for unrecognized tax benefits for tax positions relating to the years that were under examination, partially offset by additional reserves for tax positions not previously reserved for. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The calculations of earnings per share are as follows: Three Months Ended Six Months Ended ($ and shares in millions except per share amounts) 2019 2018 2019 2018 Net income attributable to Merck & Co., Inc. $ 2,670 $ 1,707 $ 5,585 $ 2,443 Average common shares outstanding 2,574 2,683 2,579 2,689 Common shares issuable (1) 14 13 17 13 Average common shares outstanding assuming dilution 2,588 2,696 2,596 2,702 Basic earnings per common share attributable to Merck & Co., Inc. common shareholders $ 1.04 $ 0.64 $ 2.17 $ 0.91 Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders $ 1.03 $ 0.63 $ 2.15 $ 0.90 (1) Issuable primarily under share-based compensation plans. For the second quarter of 2019 and 2018 , 3 million and 13 million , respectively, and for the first six months of 2019 and 2018 , 4 million and 15 million |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018, net of taxes $ (201 ) $ (167 ) $ (3,095 ) $ (1,597 ) $ (5,060 ) Other comprehensive income (loss) before reclassification adjustments, pretax 265 (17 ) (1 ) (301 ) (54 ) Tax (56 ) — 1 (60 ) (115 ) Other comprehensive income (loss) before reclassification adjustments, net of taxes 209 (17 ) — (361 ) (169 ) Reclassification adjustments, pretax 72 (1) 20 (2) 40 (3) — 132 Tax (15 ) — (10 ) — (25 ) Reclassification adjustments, net of taxes 57 20 30 — 107 Other comprehensive income (loss), net of taxes 266 3 30 (361 ) (62 ) Balance June 30, 2018, net of taxes $ 65 $ (164 ) $ (3,065 ) $ (1,958 ) $ (5,122 ) Balance April 1, 2019, net of taxes $ 118 $ 4 $ (3,541 ) $ (1,927 ) $ (5,346 ) Other comprehensive income (loss) before reclassification adjustments, pretax 10 55 — (25 ) 40 Tax (2 ) — — 6 4 Other comprehensive income (loss) before reclassification adjustments, net of taxes 8 55 — (19 ) 44 Reclassification adjustments, pretax (76 ) (1) (11 ) (2) 14 (3) — (73 ) Tax 16 — (3 ) — 13 Reclassification adjustments, net of taxes (60 ) (11 ) 11 — (60 ) Other comprehensive income (loss), net of taxes (52 ) 44 11 (19 ) (16 ) Balance June 30, 2019, net of taxes $ 66 $ 48 $ (3,530 ) $ (1,946 ) $ (5,362 ) Six Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance January 1, 2018, net of taxes $ (108 ) $ (61 ) $ (2,787 ) $ (1,954 ) $ (4,910 ) Other comprehensive income (loss) before reclassification adjustments, pretax 84 (133 ) (2 ) 18 (33 ) Tax (18 ) 1 4 (122 ) (135 ) Other comprehensive income (loss) before reclassification adjustments, net of taxes 66 (132 ) 2 (104 ) (168 ) Reclassification adjustments, pretax 164 (1) 36 (2) 81 (3) — 281 Tax (34 ) — (17 ) — (51 ) Reclassification adjustments, net of taxes 130 36 64 — 230 Other comprehensive income (loss), net of taxes 196 (96 ) 66 (104 ) 62 Adoption of ASU 2018-02 (23 ) 1 (344 ) 100 (266 ) Adoption of ASU 2016-01 — (8 ) — — (8 ) Balance June 30, 2018, net of taxes $ 65 $ (164 ) $ (3,065 ) $ (1,958 ) $ (5,122 ) Balance January 1, 2019, net of taxes $ 166 $ (78 ) $ (3,556 ) $ (2,077 ) $ (5,545 ) Other comprehensive income (loss) before reclassification adjustments, pretax (3 ) 131 (1 ) 131 258 Tax 1 — 6 — 7 Other comprehensive income (loss) before reclassification adjustments, net of taxes (2 ) 131 5 131 265 Reclassification adjustments, pretax (124 ) (1) (5 ) (2) 28 (3) — (101 ) Tax 26 — (7 ) — 19 Reclassification adjustments, net of taxes (98 ) (5 ) 21 — (82 ) Other comprehensive income (loss), net of taxes (100 ) 126 26 131 183 Balance June 30, 2019, net of taxes $ 66 $ 48 $ (3,530 ) $ (1,946 ) $ (5,362 ) (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 debt securities 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 11). |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s operations are principally managed on a products basis and include four operating segments, which are the Pharmaceutical, Animal Health, Healthcare Services and Alliances segments. The Pharmaceutical and Animal Health segments are the only reportable segments. 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. Human health 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. During 2019, as a result of changes to the Company’s internal reporting structure, certain costs that were previously included in the Pharmaceutical segment are now being included as part of non-segment expenses within Merck Research Laboratories. Prior period Pharmaceutical segment profits have been recast to reflect these changes on a comparable basis. The Animal Health segment discovers, develops, manufactures and markets animal health products, including pharmaceutical and vaccine products, for the prevention, treatment and control of disease in all major livestock and companion animal species, which the Company sells to veterinarians, distributors and animal producers. The 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. The Alliances segment primarily includes activity from the Company’s relationship with AstraZeneca LP related to sales of Nexium and Prilosec, which concluded in 2018. Sales of the Company’s products were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 ($ in millions) U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total Pharmaceutical: Oncology Keytruda $ 1,498 $ 1,136 $ 2,634 $ 959 $ 707 $ 1,667 $ 2,782 $ 2,121 $ 4,903 $ 1,797 $ 1,333 $ 3,131 Emend 67 54 121 89 59 148 130 107 237 168 105 273 Alliance revenue - Lynparza 66 45 111 31 13 44 116 74 190 55 22 76 Alliance revenue - Lenvima 54 43 97 19 16 35 104 67 171 19 16 35 Vaccines Gardasil/Gardasil 9 456 430 886 302 306 608 818 906 1,724 682 586 1,269 ProQuad/M-M-R II /Varivax 500 174 675 356 70 426 843 328 1,171 668 150 818 RotaTeq 104 68 172 99 57 156 258 125 383 250 99 349 Pneumovax 23 123 47 170 122 71 193 248 107 355 234 137 372 Vaqta 38 20 58 42 23 65 67 39 105 60 42 101 Hospital Acute Care Bridion 129 149 278 95 145 240 248 285 533 175 269 444 Noxafil 100 93 193 87 100 188 191 192 383 168 195 363 Cubicin 22 45 67 48 46 94 64 91 155 95 97 192 Invanz 18 60 78 87 63 149 31 118 150 177 123 300 Primaxin — 70 71 — 68 68 1 129 130 5 135 140 Cancidas 3 64 67 4 83 87 4 125 129 7 171 178 Immunology Simponi — 214 214 — 233 233 — 422 422 — 464 464 Remicade — 98 98 — 157 157 — 221 221 — 324 324 Neuroscience Belsomra 21 55 76 29 42 71 45 98 143 52 73 125 Virology Isentress/Isentress HD 94 153 247 132 174 305 202 300 502 260 326 586 Zepatier 39 68 108 (10 ) 123 113 72 149 221 (10 ) 253 243 Cardiovascular Zetia 6 150 156 8 218 226 6 290 296 25 505 531 Vytorin 3 73 76 3 152 155 6 167 174 11 311 322 Atozet — 92 92 — 101 101 — 186 186 — 174 174 Adempas — 104 104 — 75 75 — 194 194 — 143 143 Diabetes Januvia 471 437 908 503 446 949 855 877 1,732 968 862 1,829 Janumet 166 366 533 209 377 585 333 730 1,063 401 729 1,129 Women’s Health NuvaRing 206 34 240 187 49 236 391 68 459 357 95 452 Implanon/Nexplanon 136 48 183 114 60 174 285 98 382 242 106 348 Diversified Brands Singulair 8 153 160 5 180 185 13 338 352 11 350 360 Cozaar/Hyzaar 6 103 109 7 118 125 10 202 213 14 231 245 Nasonex (1 ) 73 72 — 81 81 (2 ) 170 168 2 201 203 Arcoxia — 75 75 — 84 84 — 149 149 — 166 166 Follistim AQ 24 39 63 27 43 70 53 67 121 56 81 138 Other pharmaceutical (1) 401 869 1,268 287 902 1,189 759 1,650 2,406 608 1,770 2,378 Total Pharmaceutical segment sales 4,758 5,702 10,460 3,841 5,442 9,282 8,933 11,190 20,123 7,557 10,644 18,201 Animal Health: Livestock 145 526 671 107 526 633 261 1,021 1,282 231 1,055 1,286 Companion Animals 190 263 453 204 253 457 367 500 867 387 482 869 Total Animal Health segment sales 335 789 1,124 311 779 1,090 628 1,521 2,149 618 1,537 2,155 Other segment sales (2) 47 — 48 56 — 56 86 — 87 140 — 140 Total segment sales 5,140 6,491 11,632 4,208 6,221 10,428 9,647 12,711 22,359 8,315 12,181 20,496 Other (3) 4 125 128 54 (18 ) 37 12 206 216 80 (74 ) 6 $ 5,144 $ 6,616 $ 11,760 $ 4,262 $ 6,203 $ 10,465 $ 9,659 $ 12,917 $ 22,575 $ 8,395 $ 12,107 $ 20,502 U.S. plus international may not equal total due to rounding . (1) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. (2) Represents the non-reportable segments of Healthcare Services and Alliances. (3) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. Product sales are recorded net of the provision for discounts, including chargebacks, which are customer discounts that occur when a contracted customer purchases through an intermediary wholesale purchaser, and rebates that are owed based upon definitive contractual agreements or legal requirements with private sector and public sector (Medicaid and Medicare Part D) benefit providers, after the final dispensing of the product by a pharmacy to a benefit plan participant. These discounts, in the aggregate, reduced U.S. sales by $2.9 billion and $2.8 billion for the three months ended June 30, 2019 and 2018 , respectively, and by $5.5 billion and $5.2 billion for the six months ended June 30, 2019 and 2018 , respectively. Consolidated sales by geographic area where derived are as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 United States $ 5,144 $ 4,262 $ 9,659 $ 8,395 Europe, Middle East and Africa 3,163 3,144 6,265 6,334 Japan 921 855 1,720 1,592 China 763 559 1,509 1,045 Asia Pacific (other than Japan and China) 716 791 1,461 1,543 Latin America 658 594 1,219 1,126 Other 395 260 742 467 $ 11,760 $ 10,465 $ 22,575 $ 20,502 A reconciliation of segment profits to Income before taxes is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Segment profits: Pharmaceutical segment $ 7,115 $ 5,975 $ 13,690 $ 11,914 Animal Health segment 405 450 820 864 Other segments (2 ) 26 — 88 Total segment profits 7,518 6,451 14,510 12,866 Other profits (losses) 94 (2 ) 124 (89 ) Unallocated: Interest income 75 81 164 165 Interest expense (233 ) (194 ) (442 ) (379 ) Depreciation and amortization (427 ) (332 ) (786 ) (682 ) Research and development (2,093 ) (2,190 ) (3,935 ) (5,307 ) Amortization of purchase accounting adjustments (378 ) (732 ) (775 ) (1,464 ) Restructuring costs (59 ) (228 ) (212 ) (323 ) Other unallocated, net (1,238 ) (768 ) (2,322 ) (1,355 ) $ 3,259 $ 2,086 $ 6,326 $ 3,432 Pharmaceutical segment profits are comprised of segment sales less standard costs, as well as selling, general and administrative expenses directly incurred by the segment. Animal Health segment profits are comprised of segment sales, less all cost of sales, as well as selling, general and administrative expenses and research and development costs directly incurred by the segment. For internal management reporting presented to the chief operating decision maker, Merck does not allocate the remaining cost of sales not included in segment profits as described above, research and development expenses incurred in Merck Research Laboratories, the Company’s research and development division that focuses on human health-related activities, 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 other intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value of liabilities for contingent consideration, and other miscellaneous income or expense items. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 27, 2019. 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. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued new accounting guidance for the accounting and reporting of leases (ASU 2016-02) and subsequently issued several updates to the new guidance (ASC 842 or new guidance). The new guidance requires that lessees recognize a right-of-use asset and a lease liability 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 previous operating leases), while finance leases will result in more expense being recognized in the earlier years of the lease term (similar to previous capital leases). The Company adopted the new standard on January 1, 2019 using a modified retrospective approach. Merck elected the transition method that allows for application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented in the financial statements. The Company also elected available practical expedients. Upon adoption, the Company recognized $1.1 billion of additional assets and related liabilities on its consolidated balance sheet (see Note 7). The adoption of the new guidance did not impact the Company’s consolidated statements of income or cash flows. Recently Issued Accounting Standards Not Yet Adopted 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, including adoption in any interim period. 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 is currently evaluating the impact of adoption on its consolidated financial statements. In April 2018, the FASB issued new guidance on the accounting for costs incurred to implement a cloud computing arrangement that is considered a service arrangement. The new guidance requires the capitalization of such costs, aligning it with the accounting for costs associated with developing or obtaining internal-use software. The new guidance is effective for interim and annual periods beginning in 2020. Early adoption is permitted, including adoption in any interim period. Prospective adoption for eligible costs incurred on or after the date of adoption or retrospective adoption is permitted. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In November 2018, the FASB issued new guidance for collaborative arrangements intended to reduce diversity in practice by clarifying whether certain transactions between collaborative arrangement participants should be accounted for under revenue recognition guidance (ASC 606). The new guidance is effective for interim and annual periods beginning in 2020. Early adoption is permitted, including adoption in any interim period. The new guidance is to be applied on a retrospective basis through a cumulative-effect adjustment directly to retained earnings. The Company does not anticipate the adoption of this standard 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. |
Acquisitions, Research Collab_2
Acquisitions, Research Collaborations and License Agreements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Fair Value of Assets Acquired and Liabilities Assumed | The estimated fair value of assets acquired and liabilities assumed from Antelliq is as follows: ($ in millions) April 1, 2019 Cash and cash equivalents $ 31 Accounts receivable 73 Inventories 97 Property, plant and equipment 62 Identifiable intangible assets (useful lives ranging from 18-24 years) (1) 2,689 Deferred income tax liabilities (563 ) Other assets and liabilities, net (81 ) Total identifiable net assets 2,308 Goodwill (2) 1,343 Consideration transferred $ 3,651 (1) The estimated fair values of identifiable intangible assets relate primarily to trade names and were determined using an income approach. The future net cash flows were discounted to present value utilizing a discount rate of 11.5% . Actual cash flows are likely to be different than those assumed. (2) The goodwill recognized is largely attributable to anticipated synergies expected to arise after the acquisition and was allocated to the Animal Health segment. The goodwill is not deductible for tax purposes. |
Collaborative Arrangements (Tab
Collaborative Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Collaborative Arrangements [Abstract] | |
Collaboration Arrangements | Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Alliance revenue $ 97 $ 35 $ 171 $ 35 Cost of sales (1) 23 1 74 1 Selling, general and administrative 19 2 38 2 Research and development (2) 62 36 109 1,436 ($ in millions) June 30, 2019 December 31, 2018 Receivables from Eisai included in Other current assets $ 98 $ 71 Payables to Eisai included in Accrued and other current liabilities (3) 709 375 Payables to Eisai included in Other Noncurrent Liabilities (3) 125 543 (1) Represents amortization of capitalized milestone payments. (2) Amount for the first six months of 2018 includes the upfront payment and future option payments. (3) Includes accrued milestone and option payments. Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Alliance revenue $ 111 $ 44 $ 190 $ 76 Cost of sales (1) 73 24 92 36 Selling, general and administrative 33 9 59 16 Research and development 33 42 78 71 ($ in millions) June 30, 2019 December 31, 2018 Receivables from AstraZeneca included in Other current assets $ 105 $ 52 Payables to AstraZeneca included in Accrued and other current liabilities (2) 605 405 Payables to AstraZeneca included in Other Noncurrent Liabilities (3) 300 250 (1) Represents amortization of capitalized milestone payments. (2) Includes accrued milestone and license option payments. Summarized financial information related to this collaboration is as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Net product sales recorded by Merck $ 53 $ 47 $ 100 $ 90 Merck’s profit share from sales in Bayer’s marketing territories 51 28 94 53 Total sales 104 75 194 143 Cost of sales (1) 29 132 58 159 Selling, general and administrative 11 10 20 17 Research and development 32 28 62 56 ($ in millions) June 30, 2019 December 31, 2018 Receivables from Bayer included in Other current assets $ 41 $ 32 Payables to Bayer included in Other Noncurrent Liabilities (2) 375 375 (1) Includes amortization of intangible assets. (2) Represents accrued milestone payment. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 Six Months Ended June 30, 2019 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Cost of sales $ — $ 64 $ 1 $ 65 $ — $ 98 $ 1 $ 99 Selling, general and administrative — 32 — 32 — 32 — 32 Research and development — 2 1 3 — 2 1 3 Restructuring costs 25 — 34 59 153 — 59 212 $ 25 $ 98 $ 36 $ 159 $ 153 $ 132 $ 61 $ 346 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 ($ in millions) Separation Costs Accelerated Depreciation Other Total Separation Costs Accelerated Depreciation Other Total Cost of sales $ — $ — $ 3 $ 3 $ — $ — $ 9 $ 9 Selling, general and administrative — — 1 1 — 1 1 2 Research and development — — 3 3 — (3 ) 8 5 Restructuring costs 200 — 28 228 255 — 68 323 $ 200 $ — $ 35 $ 235 $ 255 $ (2 ) $ 86 $ 339 |
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, 2019 : ($ in millions) Separation Costs Accelerated Depreciation Other Total Restructuring reserves January 1, 2019 $ 443 $ — $ 91 $ 534 Expense 153 132 61 346 (Payments) receipts, net (126 ) — (77 ) (203 ) Non-cash activity — (132 ) (2 ) (134 ) Restructuring reserves June 30, 2019 (1) $ 470 $ — $ 73 $ 543 (1) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Net Investment Hedges on OCI and the Consolidated Statement of Income | The effects of the Company’s net investment hedges on OCI and the Consolidated Statement of Income are shown below: Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1) Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Net Investment Hedging Relationships Foreign exchange contracts $ 17 $ (12 ) $ 7 $ (14 ) $ (8 ) $ (3 ) $ (15 ) $ (3 ) Euro-denominated notes 28 (271 ) (2 ) (92 ) — — — — (1) No amounts were reclassified from AOCI into income related to the sale of a subsidiary. |
Summary of Interest Rate Swaps Held | At June 30, 2019 , the Company was a party to 19 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. June 30, 2019 ($ in millions) Par Value of Debt Number of Interest Rate Swaps Held Total Swap Notional Amount 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 |
Amounts Recorded on Balance Sheet Related to Fair Value Hedges | The table below presents the location of amounts recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges: Carrying Amount of Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount ($ in millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Balance Sheet Line Item in which Hedged Item is Included Loans payable and current portion of long-term debt $ 1,244 $ — $ (6 ) $ — Long-Term Debt 3,406 4,560 11 (82 ) |
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, 2019 December 31, 2018 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 $ 14 $ — $ 2,150 $ — $ — $ — Interest rate swap contracts Accrued and other current liabilities — 6 1,250 — — — Interest rate swap contracts Other Noncurrent Liabilities — 2 1,250 — 81 4,650 Foreign exchange contracts Other current assets 168 — 6,389 263 — 6,222 Foreign exchange contracts Other Assets 49 — 2,790 75 — 2,655 Foreign exchange contracts Accrued and other current liabilities — 13 1,252 — 7 774 Foreign exchange contracts Other Noncurrent Liabilities — — — — 1 89 $ 231 $ 21 $ 15,081 $ 338 $ 89 $ 14,390 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Other current assets $ 70 $ — $ 6,665 $ 116 $ — $ 5,430 Foreign exchange contracts Accrued and other current liabilities — 63 4,982 — 71 9,922 $ 70 $ 63 $ 11,647 $ 116 $ 71 $ 15,352 $ 301 $ 84 $ 26,728 $ 454 $ 160 $ 29,742 |
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, 2019 December 31, 2018 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the consolidated balance sheet $ 301 $ 84 $ 454 $ 160 Gross amounts subject to offset in master netting arrangements not offset in the consolidated balance sheet (69 ) (69 ) (121 ) (121 ) Cash collateral received (32 ) — (107 ) — Net amounts $ 200 $ 15 $ 226 $ 39 |
Location and Amount of Pretax (Gains) Losses of Derivatives | The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value or cash flow hedging relationships: Sales Other (income) expense, net (1) Other comprehensive income (loss) Sales Other (income) expense, net (1) Other comprehensive income (loss) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, ($ in millions) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded $ 11,760 $ 10,465 $ 140 (48 ) $ (16 ) $ (62 ) 22,575 $ 20,502 $ 327 $ (340 ) $ 183 $ 62 (Gain) loss on fair value hedging relationships Interest rate swap contracts Hedged items — — 55 (15 ) — — — — 88 (77 ) — — Derivatives designated as hedging instruments — — (45 ) 22 — — — — (68 ) 84 — — Impact of cash flow hedging relationships Foreign exchange contracts Amount of income (loss) recognized in OCI on derivatives — — — — 10 264 — — — — (2 ) 84 Increase (decrease) in Sales as a result of AOCI reclassifications 75 (73 ) — — (75 ) 73 119 (166 ) — — (119 ) 166 Interest rate contracts Amount of gain recognized in Other (income) expense, net on derivatives — — (1 ) (1 ) — — — — (2 ) (2 ) — — Amount of loss recognized in OCI on derivatives — — — — (1 ) (1 ) — — — — (5 ) (2 ) (1) Interest expense is a component of Other (income) expense, net. |
Income Statement Effects of Derivatives Not Designated as Hedging Instruments | The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments: Amount of Derivative Pretax (Gain) Loss Recognized in Income Three Months Ended June 30, Six Months Ended June 30, ($ in millions) Income Statement Caption 2019 2018 2019 2018 Derivatives Not Designated as Hedging Instruments Foreign exchange contracts (1) Other (income) expense, net $ 2 $ (195 ) $ 120 $ (167 ) Foreign exchange contracts (2) Sales (6 ) (14 ) 4 (5 ) (1) These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. (2) These derivative contracts serve as economic hedges of forecasted transactions. |
Information on Investments in Debt and Equity Securities | Information on investments in debt and equity securities is as follows: June 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Fair Value Amortized Cost Gross Unrealized Fair Value ($ in millions) Gains Losses Gains Losses Corporate notes and bonds $ 2,666 $ 36 $ (2 ) $ 2,700 $ 4,985 $ 3 $ (68 ) $ 4,920 Asset-backed securities 789 4 (1 ) 792 1,285 1 (11 ) 1,275 U.S. government and agency securities 575 10 — 585 895 2 (5 ) 892 Foreign government bonds 41 — — 41 167 — (1 ) 166 Mortgage-backed securities 5 — — 5 8 — — 8 Total debt securities $ 4,076 $ 50 $ (3 ) $ 4,123 $ 7,340 $ 6 $ (85 ) $ 7,261 Publicly traded equity securities (1) 756 456 Total debt and publicly traded equity securities $ 4,879 $ 7,717 (1) Unrealized net (losses) gains recognized in Other (income) expense, net on equity securities still held at June 30, 2019 were $(39) million and $7 million , for the second quarter of 2019 and 2018 , respectively, and were $75 million and $50 million for the first six months of 2019 and 2018 , respectively. |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in millions) June 30, 2019 December 31, 2018 Assets Investments Corporate notes and bonds $ — $ 2,660 $ — $ 2,660 $ — $ 4,835 $ — $ 4,835 Asset-backed securities (1) — 788 — 788 — 1,253 — 1,253 U.S. government and agency securities — 508 — 508 — 731 — 731 Foreign government bonds — 41 — 41 — 166 — 166 Publicly traded equity securities 228 — — 228 147 — — 147 228 3,997 — 4,225 147 6,985 — 7,132 Other assets (2) U.S. government and agency securities 58 19 — 77 55 106 — 161 Corporate notes and bonds — 40 — 40 — 85 — 85 Mortgage-backed securities — 5 — 5 — 8 — 8 Asset-backed securities (1) — 4 — 4 — 22 — 22 Publicly traded equity securities 528 — — 528 309 — — 309 586 68 — 654 364 221 — 585 Derivative assets (3) Purchased currency options — 158 — 158 — 213 — 213 Forward exchange contracts — 129 — 129 — 241 — 241 Interest rate swaps — 14 — 14 — — — — — 301 — 301 — 454 — 454 Total assets $ 814 $ 4,366 $ — $ 5,180 $ 511 $ 7,660 $ — $ 8,171 Liabilities Other liabilities Contingent consideration $ — $ — $ 753 $ 753 $ — $ — $ 788 $ 788 Derivative liabilities (3) Forward exchange contracts — 73 — 73 — 74 — 74 Interest rate swaps — 8 — 8 — 81 — 81 Written currency options — 3 — 3 — 5 — 5 — 84 — 84 — 160 — 160 Total liabilities $ — $ 84 $ 753 $ 837 $ — $ 160 $ 788 $ 948 (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. (2) Investments included in other assets are restricted as to use, primarily for the payment of benefits under employee benefit plans. (3) 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) 2019 2018 Fair value January 1 $ 788 $ 935 Changes in estimated fair value (1) 50 122 Additions — 8 Payments (85 ) (235 ) Fair value June 30 (2) $ 753 $ 830 (1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net . Includes cumulative translation adjustments. (2) Balance at June 30, 2019 includes $114 million recorded as a current liability for amounts expected to be paid within the next 12 months. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of: ($ in millions) June 30, 2019 December 31, 2018 Finished goods $ 1,750 $ 1,658 Raw materials and work in process 5,388 5,004 Supplies 202 194 Total (approximates current cost) 7,340 6,856 (Decrease) increase to LIFO costs (29 ) 1 $ 7,311 $ 6,857 Recognized as: Inventories $ 5,847 $ 5,440 Other assets 1,464 1,417 |
Loans Payable, Long-Term Debt_2
Loans Payable, Long-Term Debt and Leases Loans Payable, Long-Term Debt and Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans Payable, Long-Term Debt and Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating leases is as follows: ($ in millions) June 30, 2019 Assets Other Assets (1) $ 1,063 Liabilities Accrued and other current liabilities $ 241 Other Noncurrent Liabilities 752 $ 993 Weighted-average remaining lease term (years) 7.5 Weighted-average discount rate 3.4 % (1) Includes prepaid leases that have no related lease liability. |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating leases liabilities are as follows: ($ in millions) June 30, 2019 2019 (excluding the six months ended June 30, 2019) $ 138 2020 232 2021 172 2022 146 2023 98 Thereafter 339 Total lease payments 1,125 Less: imputed interest (132 ) $ 993 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Three Months Ended June 30, Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at April 1, 2018 3,577 $ 1,788 $ 39,874 $ 41,107 $ (5,060 ) 885 $ (44,041 ) $ 233 $ 33,901 Net income attributable to Merck & Co., Inc. — — — 1,707 — — — — 1,707 Other comprehensive loss, net of taxes — — — — (62 ) — — — (62 ) Cash dividends declared on common stock ($0.48 per share) — — — (1,291 ) — — — — (1,291 ) Treasury stock shares purchased — — — — — 27 (1,596 ) — (1,596 ) Share-based compensation plans and other — — (133 ) — — (5 ) 236 — 103 Net income attributable to noncontrolling interests — — — — — — — 9 9 Distributions attributable to noncontrolling interests — — — — — — — (5 ) (5 ) Balance at June 30, 2018 3,577 $ 1,788 $ 39,741 $ 41,523 $ (5,122 ) 907 $ (45,401 ) $ 237 $ 32,766 Balance at April 1, 2019 3,577 $ 1,788 $ 38,768 $ 44,065 $ (5,346 ) 994 $ (51,736 ) $ 131 $ 27,670 Net income attributable to Merck & Co., Inc. — — — 2,670 — — — — 2,670 Other comprehensive loss, net of taxes — — — — (16 ) — — — (16 ) Cash dividends declared on common stock ($0.55 per share) — — — (1,440 ) — — — — (1,440 ) Treasury stock shares purchased — — 1,000 — — 24 (2,235 ) — (1,235 ) Share-based compensation plans and other — — (284 ) — — (8 ) 401 — 117 Net loss attributable to noncontrolling interests — — — — — — — (26 ) (26 ) Other changes in noncontrolling ownership interests — — — — — — — (3 ) (3 ) Balance at June 30, 2019 3,577 $ 1,788 $ 39,484 $ 45,295 $ (5,362 ) 1,010 $ (53,570 ) $ 102 $ 27,737 Six Months Ended June 30, Common Stock Other Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non- Controlling Interests Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at January 1, 2018 3,577 $ 1,788 $ 39,902 $ 41,350 $ (4,910 ) 880 $ (43,794 ) $ 233 $ 34,569 Net income attributable to Merck & Co., Inc. — — — 2,443 — — — — 2,443 Adoption of new accounting standards — — — 322 (274 ) — — — 48 Other comprehensive income, net of taxes — — — — 62 — — — 62 Cash dividends declared on common stock ($0.96 per share) — — — (2,592 ) — — — — (2,592 ) Treasury stock shares purchased — — — — — 37 (2,162 ) — (2,162 ) Share-based compensation plans and other — — (161 ) — — (10 ) 555 — 394 Net income attributable to noncontrolling interests — — — — — — — 14 14 Distributions attributable to noncontrolling interests — — — — — — — (10 ) (10 ) Balance at June 30, 2018 3,577 $ 1,788 $ 39,741 $ 41,523 $ (5,122 ) 907 $ (45,401 ) $ 237 $ 32,766 Balance at January 1, 2019 3,577 $ 1,788 $ 38,808 $ 42,579 $ (5,545 ) 985 $ (50,929 ) $ 181 $ 26,882 Net income attributable to Merck & Co., Inc. — — — 5,585 — — — — 5,585 Other comprehensive income, net of taxes — — — — 183 — — — 183 Cash dividends declared on common stock ($1.10 per share) — — — (2,869 ) — — — — (2,869 ) Treasury stock shares purchased — — 1,000 — — 38 (3,325 ) — (2,325 ) Share-based compensation plans and other — — (324 ) — — (13 ) 684 — 360 Net loss attributable to noncontrolling interests — — — — — — — (79 ) (79 ) Balance at June 30, 2019 3,577 $ 1,788 $ 39,484 $ 45,295 $ (5,362 ) 1,010 $ (53,570 ) $ 102 $ 27,737 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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) 2019 2018 2019 2018 Pretax share-based compensation expense $ 111 $ 90 $ 204 $ 170 Income tax benefit (15 ) (13 ) (28 ) (28 ) Total share-based compensation expense, net of taxes $ 96 $ 77 $ 176 $ 142 |
Assumptions Used to Determine Weighted-Average Fair Value of Options Granted | The weighted-average fair value of options granted during the first six months of 2019 and 2018 was $10.63 and $8.19 per option, respectively, and was determined using the following assumptions: Six Months Ended 2019 2018 Expected dividend yield 3.2 % 3.4 % Risk-free interest rate 2.4 % 2.8 % Expected volatility 18.7 % 19.1 % Expected life (years) 5.9 6.1 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of net cost of defined benefit plans | The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries. The net periodic benefit cost of such plans consisted of the following components: Three Months Ended Six Months Ended 2019 2018 2019 2018 ($ in millions) U.S. International U.S. International U.S. International U.S. International Service cost $ 74 $ 60 $ 85 $ 58 $ 144 $ 120 $ 168 $ 125 Interest cost 113 44 107 45 228 89 215 91 Expected return on plan assets (205 ) (107 ) (211 ) (108 ) (411 ) (214 ) (425 ) (221 ) Amortization of unrecognized prior service credit (12 ) (3 ) (13 ) (3 ) (25 ) (6 ) (25 ) (7 ) Net loss amortization 35 16 56 21 70 31 112 43 Termination benefits 3 1 7 — 5 1 17 — Curtailments — — 5 (1 ) 1 — 3 (1 ) Settlements — — — 4 — — 1 4 $ 8 $ 11 $ 36 $ 16 $ 12 $ 21 $ 66 $ 34 |
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 credit of such plans consisted of the following components: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Service cost $ 12 $ 14 $ 24 $ 28 Interest cost 18 18 35 35 Expected return on plan assets (18 ) (21 ) (36 ) (41 ) Amortization of unrecognized prior service credit (21 ) (21 ) (43 ) (42 ) Termination benefits — 1 — 2 Curtailments (1 ) (2 ) (1 ) (6 ) $ (10 ) $ (11 ) $ (21 ) $ (24 ) |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Other (income) expense, net, consisted of: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 Interest income $ (75 ) $ (81 ) $ (164 ) $ (165 ) Interest expense 233 194 442 379 Exchange losses 27 71 128 77 Income from investments in equity securities, net (1) (58 ) (153 ) (32 ) (178 ) Net periodic defined benefit plan (credit) cost other than service cost (140 ) (130 ) (281 ) (265 ) Other, net 153 51 234 (188 ) $ 140 $ (48 ) $ 327 $ (340 ) (1) Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investments funds. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) 2019 2018 2019 2018 Net income attributable to Merck & Co., Inc. $ 2,670 $ 1,707 $ 5,585 $ 2,443 Average common shares outstanding 2,574 2,683 2,579 2,689 Common shares issuable (1) 14 13 17 13 Average common shares outstanding assuming dilution 2,588 2,696 2,596 2,702 Basic earnings per common share attributable to Merck & Co., Inc. common shareholders $ 1.04 $ 0.64 $ 2.17 $ 0.91 Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders $ 1.03 $ 0.63 $ 2.15 $ 0.90 (1) Issuable primarily under share-based compensation plans. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018, net of taxes $ (201 ) $ (167 ) $ (3,095 ) $ (1,597 ) $ (5,060 ) Other comprehensive income (loss) before reclassification adjustments, pretax 265 (17 ) (1 ) (301 ) (54 ) Tax (56 ) — 1 (60 ) (115 ) Other comprehensive income (loss) before reclassification adjustments, net of taxes 209 (17 ) — (361 ) (169 ) Reclassification adjustments, pretax 72 (1) 20 (2) 40 (3) — 132 Tax (15 ) — (10 ) — (25 ) Reclassification adjustments, net of taxes 57 20 30 — 107 Other comprehensive income (loss), net of taxes 266 3 30 (361 ) (62 ) Balance June 30, 2018, net of taxes $ 65 $ (164 ) $ (3,065 ) $ (1,958 ) $ (5,122 ) Balance April 1, 2019, net of taxes $ 118 $ 4 $ (3,541 ) $ (1,927 ) $ (5,346 ) Other comprehensive income (loss) before reclassification adjustments, pretax 10 55 — (25 ) 40 Tax (2 ) — — 6 4 Other comprehensive income (loss) before reclassification adjustments, net of taxes 8 55 — (19 ) 44 Reclassification adjustments, pretax (76 ) (1) (11 ) (2) 14 (3) — (73 ) Tax 16 — (3 ) — 13 Reclassification adjustments, net of taxes (60 ) (11 ) 11 — (60 ) Other comprehensive income (loss), net of taxes (52 ) 44 11 (19 ) (16 ) Balance June 30, 2019, net of taxes $ 66 $ 48 $ (3,530 ) $ (1,946 ) $ (5,362 ) Six Months Ended June 30, ($ in millions) Derivatives Investments Employee Benefit Plans Cumulative Translation Adjustment Accumulated Other Comprehensive Income (Loss) Balance January 1, 2018, net of taxes $ (108 ) $ (61 ) $ (2,787 ) $ (1,954 ) $ (4,910 ) Other comprehensive income (loss) before reclassification adjustments, pretax 84 (133 ) (2 ) 18 (33 ) Tax (18 ) 1 4 (122 ) (135 ) Other comprehensive income (loss) before reclassification adjustments, net of taxes 66 (132 ) 2 (104 ) (168 ) Reclassification adjustments, pretax 164 (1) 36 (2) 81 (3) — 281 Tax (34 ) — (17 ) — (51 ) Reclassification adjustments, net of taxes 130 36 64 — 230 Other comprehensive income (loss), net of taxes 196 (96 ) 66 (104 ) 62 Adoption of ASU 2018-02 (23 ) 1 (344 ) 100 (266 ) Adoption of ASU 2016-01 — (8 ) — — (8 ) Balance June 30, 2018, net of taxes $ 65 $ (164 ) $ (3,065 ) $ (1,958 ) $ (5,122 ) Balance January 1, 2019, net of taxes $ 166 $ (78 ) $ (3,556 ) $ (2,077 ) $ (5,545 ) Other comprehensive income (loss) before reclassification adjustments, pretax (3 ) 131 (1 ) 131 258 Tax 1 — 6 — 7 Other comprehensive income (loss) before reclassification adjustments, net of taxes (2 ) 131 5 131 265 Reclassification adjustments, pretax (124 ) (1) (5 ) (2) 28 (3) — (101 ) Tax 26 — (7 ) — 19 Reclassification adjustments, net of taxes (98 ) (5 ) 21 — (82 ) Other comprehensive income (loss), net of taxes (100 ) 126 26 131 183 Balance June 30, 2019, net of taxes $ 66 $ 48 $ (3,530 ) $ (1,946 ) $ (5,362 ) (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 debt securities 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 11). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Sales of Company's products | Sales of the Company’s products were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 ($ in millions) U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total Pharmaceutical: Oncology Keytruda $ 1,498 $ 1,136 $ 2,634 $ 959 $ 707 $ 1,667 $ 2,782 $ 2,121 $ 4,903 $ 1,797 $ 1,333 $ 3,131 Emend 67 54 121 89 59 148 130 107 237 168 105 273 Alliance revenue - Lynparza 66 45 111 31 13 44 116 74 190 55 22 76 Alliance revenue - Lenvima 54 43 97 19 16 35 104 67 171 19 16 35 Vaccines Gardasil/Gardasil 9 456 430 886 302 306 608 818 906 1,724 682 586 1,269 ProQuad/M-M-R II /Varivax 500 174 675 356 70 426 843 328 1,171 668 150 818 RotaTeq 104 68 172 99 57 156 258 125 383 250 99 349 Pneumovax 23 123 47 170 122 71 193 248 107 355 234 137 372 Vaqta 38 20 58 42 23 65 67 39 105 60 42 101 Hospital Acute Care Bridion 129 149 278 95 145 240 248 285 533 175 269 444 Noxafil 100 93 193 87 100 188 191 192 383 168 195 363 Cubicin 22 45 67 48 46 94 64 91 155 95 97 192 Invanz 18 60 78 87 63 149 31 118 150 177 123 300 Primaxin — 70 71 — 68 68 1 129 130 5 135 140 Cancidas 3 64 67 4 83 87 4 125 129 7 171 178 Immunology Simponi — 214 214 — 233 233 — 422 422 — 464 464 Remicade — 98 98 — 157 157 — 221 221 — 324 324 Neuroscience Belsomra 21 55 76 29 42 71 45 98 143 52 73 125 Virology Isentress/Isentress HD 94 153 247 132 174 305 202 300 502 260 326 586 Zepatier 39 68 108 (10 ) 123 113 72 149 221 (10 ) 253 243 Cardiovascular Zetia 6 150 156 8 218 226 6 290 296 25 505 531 Vytorin 3 73 76 3 152 155 6 167 174 11 311 322 Atozet — 92 92 — 101 101 — 186 186 — 174 174 Adempas — 104 104 — 75 75 — 194 194 — 143 143 Diabetes Januvia 471 437 908 503 446 949 855 877 1,732 968 862 1,829 Janumet 166 366 533 209 377 585 333 730 1,063 401 729 1,129 Women’s Health NuvaRing 206 34 240 187 49 236 391 68 459 357 95 452 Implanon/Nexplanon 136 48 183 114 60 174 285 98 382 242 106 348 Diversified Brands Singulair 8 153 160 5 180 185 13 338 352 11 350 360 Cozaar/Hyzaar 6 103 109 7 118 125 10 202 213 14 231 245 Nasonex (1 ) 73 72 — 81 81 (2 ) 170 168 2 201 203 Arcoxia — 75 75 — 84 84 — 149 149 — 166 166 Follistim AQ 24 39 63 27 43 70 53 67 121 56 81 138 Other pharmaceutical (1) 401 869 1,268 287 902 1,189 759 1,650 2,406 608 1,770 2,378 Total Pharmaceutical segment sales 4,758 5,702 10,460 3,841 5,442 9,282 8,933 11,190 20,123 7,557 10,644 18,201 Animal Health: Livestock 145 526 671 107 526 633 261 1,021 1,282 231 1,055 1,286 Companion Animals 190 263 453 204 253 457 367 500 867 387 482 869 Total Animal Health segment sales 335 789 1,124 311 779 1,090 628 1,521 2,149 618 1,537 2,155 Other segment sales (2) 47 — 48 56 — 56 86 — 87 140 — 140 Total segment sales 5,140 6,491 11,632 4,208 6,221 10,428 9,647 12,711 22,359 8,315 12,181 20,496 Other (3) 4 125 128 54 (18 ) 37 12 206 216 80 (74 ) 6 $ 5,144 $ 6,616 $ 11,760 $ 4,262 $ 6,203 $ 10,465 $ 9,659 $ 12,917 $ 22,575 $ 8,395 $ 12,107 $ 20,502 U.S. plus international may not equal total due to rounding . (1) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. (2) Represents the non-reportable segments of Healthcare Services and Alliances. (3) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. |
Consolidated revenues by geographic area | Consolidated sales by geographic area where derived are as follows: Three Months Ended Six Months Ended ($ in millions) 2019 2018 2019 2018 United States $ 5,144 $ 4,262 $ 9,659 $ 8,395 Europe, Middle East and Africa 3,163 3,144 6,265 6,334 Japan 921 855 1,720 1,592 China 763 559 1,509 1,045 Asia Pacific (other than Japan and China) 716 791 1,461 1,543 Latin America 658 594 1,219 1,126 Other 395 260 742 467 $ 11,760 $ 10,465 $ 22,575 $ 20,502 |
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) 2019 2018 2019 2018 Segment profits: Pharmaceutical segment $ 7,115 $ 5,975 $ 13,690 $ 11,914 Animal Health segment 405 450 820 864 Other segments (2 ) 26 — 88 Total segment profits 7,518 6,451 14,510 12,866 Other profits (losses) 94 (2 ) 124 (89 ) Unallocated: Interest income 75 81 164 165 Interest expense (233 ) (194 ) (442 ) (379 ) Depreciation and amortization (427 ) (332 ) (786 ) (682 ) Research and development (2,093 ) (2,190 ) (3,935 ) (5,307 ) Amortization of purchase accounting adjustments (378 ) (732 ) (775 ) (1,464 ) Restructuring costs (59 ) (228 ) (212 ) (323 ) Other unallocated, net (1,238 ) (768 ) (2,322 ) (1,355 ) $ 3,259 $ 2,086 $ 6,326 $ 3,432 |
Basis of Presentation - Adoptio
Basis of Presentation - Adoption of New Accounting Standards - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Additional Assets | $ 1,063 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Additional Assets | $ 1,100 |
Acquisitions, Research Collab_3
Acquisitions, Research Collaborations and License Agreements - Acquisitions (Details) $ in Millions, $ in Millions | Apr. 01, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jun. 30, 2018AUD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | ||||||||||
Goodwill | $ 19,490 | $ 19,490 | $ 18,253 | |||||||
Research and development | $ 2,189 | $ 2,274 | $ 4,119 | $ 5,470 | ||||||
Antelliq | ||||||||||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | ||||||||||
Payment to acquire business | $ 2,300 | |||||||||
Payment of debt | 1,300 | |||||||||
Transaction costs | 47 | |||||||||
Cash and cash equivalents | 31 | |||||||||
Goodwill | $ 1,343 | |||||||||
Immune Design | ||||||||||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | ||||||||||
Payment to acquire business | $ 301 | |||||||||
Intangible assets recognized | 156 | |||||||||
Cash and cash equivalents | 83 | |||||||||
Other assets recognized | 31 | |||||||||
Goodwill | $ 31 | |||||||||
Viralytics | ||||||||||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | ||||||||||
Payment to acquire business | $ 502 | $ 378 | ||||||||
Other assets recognized | $ 34 | 34 | 34 | |||||||
Research and development | $ 344 | $ 344 | ||||||||
Subsequent Event | Peloton | ||||||||||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | ||||||||||
Payment to acquire business | $ 1,050 | |||||||||
Potential future milestone payments, maximum | $ 1,150 |
Acquisitions, Research Collab_4
Acquisitions, Research Collaborations and License Agreements - Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Millions | Apr. 01, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | |||
Goodwill | $ 19,490 | $ 18,253 | |
Minimum | |||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | |||
Useful lives of identifiable intangible assets | 18 years | ||
Maximum | |||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | |||
Useful lives of identifiable intangible assets | 24 years | ||
Antelliq | |||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | |||
Cash and cash equivalents | $ 31 | ||
Accounts receivable | 73 | ||
Inventories | 97 | ||
Property, plant and equipment | 62 | ||
Identifiable intangible assets (useful lives ranging from 18-24 years) (1) | 2,689 | ||
Deferred income tax liabilities | (563) | ||
Other assets and liabilities, net | (81) | ||
Total identifiable net assets | 2,308 | ||
Goodwill | 1,343 | ||
Consideration transferred | $ 3,651 | ||
Measurement Input, Discount Rate | Antelliq | |||
Acquisitions Research Collaborations And License Agreements Transactions [Line Items] | |||
Present value discount rate | 0.115 |
Collaborative Arrangements - Na
Collaborative Arrangements - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | 37 Months Ended | ||||||||||||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Mar. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Research and development | $ 2,189 | $ 2,274 | $ 4,119 | $ 5,470 | ||||||||||||||||
Other liabilities, noncurrent | $ 11,283 | $ 12,041 | 11,283 | 11,283 | $ 12,041 | $ 12,041 | ||||||||||||||
Lynparza | Other Assets | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets | 1,000 | 1,000 | 1,000 | |||||||||||||||||
Lenvima | Other Assets | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets | 687 | 687 | 687 | |||||||||||||||||
Adempas | Other intangible assets | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Finite-lived intangible assets | 956 | 956 | 956 | |||||||||||||||||
AstraZeneca | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Upfront and milestone payments | $ 1,600 | |||||||||||||||||||
License option payment related to collaborative arrangement | $ 400 | $ 250 | $ 750 | |||||||||||||||||
Research and development | $ 2,350 | |||||||||||||||||||
AstraZeneca | Forecast | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
License option payment related to collaborative arrangement | $ 100 | |||||||||||||||||||
AstraZeneca | Lynparza | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Cumulative amortization expense | 52 | |||||||||||||||||||
AstraZeneca | Sales-Based Milestones | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Probable contingent payments collaborative arrangement | $ 700 | |||||||||||||||||||
Contingent milestone payments collaborative arrangement | 3,100 | |||||||||||||||||||
AstraZeneca | Sales-Based Milestones | Lynparza | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Probable contingent payments collaborative arrangement | 300 | |||||||||||||||||||
Liabilities | 300 | $ 300 | 300 | |||||||||||||||||
Milestone payments made to collaborative partner | 250 | |||||||||||||||||||
AstraZeneca | Regulatory Milestones | Lynparza | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Milestone payments made to collaborative partner | $ 30 | $ 30 | 140 | |||||||||||||||||
Contingent milestone payments collaborative arrangement | 1,700 | |||||||||||||||||||
Eisai | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Upfront and milestone payments | $ 750 | |||||||||||||||||||
License option payment related to collaborative arrangement | $ 325 | |||||||||||||||||||
Research and development | $ 1,400 | 1,400 | ||||||||||||||||||
Eisai | Forecast | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
License option payment related to collaborative arrangement | $ 125 | $ 200 | $ 650 | |||||||||||||||||
Eisai | Lenvima | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Cumulative amortization expense | $ 35 | |||||||||||||||||||
Eisai | Sales-Based Milestones | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Contingent milestone payments collaborative arrangement | 3,970 | 3,420 | ||||||||||||||||||
Eisai | Sales-Based Milestones | Lenvima | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Probable contingent payments collaborative arrangement | 282 | 268 | ||||||||||||||||||
Liabilities | $ 282 | $ 282 | ||||||||||||||||||
Milestone payments made to collaborative partner | 50 | |||||||||||||||||||
Eisai | Regulatory Milestones | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Contingent milestone payments collaborative arrangement | $ 385 | 135 | ||||||||||||||||||
Eisai | Regulatory Milestones | Lenvima | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Milestone payments made to collaborative partner | $ 250 | |||||||||||||||||||
Bayer AG | Adempas | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Cumulative amortization expense | 106 | |||||||||||||||||||
Bayer AG | Sales-Based Milestones | ||||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||||
Probable contingent payments collaborative arrangement | 375 | |||||||||||||||||||
Milestone payments made to collaborative partner | $ 350 | |||||||||||||||||||
Contingent milestone payments collaborative arrangement | $ 400 | |||||||||||||||||||
Other liabilities, noncurrent | $ 375 | $ 375 |
Collaborative Arrangements - Sc
Collaborative Arrangements - Schedule of Collaborative Arrangement Transactions (Details) - Collaborative Arrangement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other current assets | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Receivables from counterparty | $ 105 | $ 105 | $ 52 | ||
Other current assets | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Receivables from counterparty | 98 | 98 | 71 | ||
Other current assets | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Receivables from counterparty | 41 | 41 | 32 | ||
Accounts payable and accrued liabilities | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payables to counterparty | 605 | 605 | 405 | ||
Accounts payable and accrued liabilities | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payables to counterparty | 709 | 709 | 375 | ||
Other Noncurrent Liabilities | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payables to counterparty | 300 | 300 | 250 | ||
Other Noncurrent Liabilities | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payables to counterparty | 125 | 125 | 543 | ||
Other Noncurrent Liabilities | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Payables to counterparty | 375 | 375 | $ 375 | ||
Revenue | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total sales | 111 | $ 44 | 190 | $ 76 | |
Revenue | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Total sales | 97 | 35 | 171 | 35 | |
Revenue | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Net product sales recorded by Merck | 53 | 47 | 100 | 90 | |
Merck’s profit share from sales in Bayer’s marketing territories | 51 | 28 | 94 | 53 | |
Total sales | 104 | 75 | 194 | 143 | |
Cost of sales | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 73 | 24 | 92 | 36 | |
Cost of sales | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 23 | 1 | 74 | 1 | |
Cost of sales | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 29 | 132 | 58 | 159 | |
Selling, general and administrative | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 33 | 9 | 59 | 16 | |
Selling, general and administrative | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 19 | 2 | 38 | 2 | |
Selling, general and administrative | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 11 | 10 | 20 | 17 | |
Research and development | AstraZeneca | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 33 | 42 | 78 | 71 | |
Research and development | Eisai | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | 62 | 36 | 109 | 1,436 | |
Research and development | Bayer AG | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Expenses | $ 32 | $ 28 | $ 62 | $ 56 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Estimate of cumulative pre tax costs that will result in cash outlays | 55.00% | ||||
Estimate of cumulative pre tax costs that will be noncash | 45.00% | ||||
Total pretax restructuring costs | $ 159 | $ 235 | $ 346 | $ 339 | |
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring and related cost | 800 | 800 | |||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring and related cost | $ 1,200 | $ 1,200 | |||
Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring and related cost | $ 500 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | $ 159 | $ 235 | $ 346 | $ 339 |
Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 25 | 200 | 153 | 255 |
Accelerated Depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 98 | 0 | 132 | (2) |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 36 | 35 | 61 | 86 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 65 | 3 | 99 | 9 |
Cost of sales | Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 0 | 0 | 0 | 0 |
Cost of sales | Accelerated Depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 64 | 0 | 98 | 0 |
Cost of sales | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 1 | 3 | 1 | 9 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 32 | 1 | 32 | 2 |
Selling, general and administrative | Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 0 | 0 | 0 | 0 |
Selling, general and administrative | Accelerated Depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 32 | 0 | 32 | 1 |
Selling, general and administrative | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 0 | 1 | 0 | 1 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 3 | 3 | 3 | 5 |
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 | 2 | 0 | 2 | (3) |
Research and development | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 1 | 3 | 1 | 8 |
Restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 59 | 228 | 212 | 323 |
Restructuring costs | Separation Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total pretax restructuring costs | 25 | 200 | 153 | 255 |
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 | $ 34 | $ 28 | $ 59 | $ 68 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 534 | |||
Expense | $ 159 | $ 235 | 346 | $ 339 |
(Payments) receipts, net | (203) | |||
Non-cash activity | (134) | |||
Restructuring reserve, ending balance | 543 | 543 | ||
Separation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 443 | |||
Expense | 25 | 200 | 153 | 255 |
(Payments) receipts, net | (126) | |||
Non-cash activity | 0 | |||
Restructuring reserve, ending balance | 470 | 470 | ||
Accelerated Depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Expense | 98 | 0 | 132 | (2) |
(Payments) receipts, net | 0 | |||
Non-cash activity | (132) | |||
Restructuring reserve, ending balance | 0 | 0 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 91 | |||
Expense | 36 | $ 35 | 61 | $ 86 |
(Payments) receipts, net | (77) | |||
Non-cash activity | (2) | |||
Restructuring reserve, ending balance | $ 73 | $ 73 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)interest_rate_swap | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Number of interest rate swaps held (in interest rate swaps) | interest_rate_swap | 19 | ||
Pretax net unrealized gain on derivatives maturing within next 12 months estimated to be reclassified from AOCI to sales | $ 76,000,000 | ||
Equity investments without readily determinable fair values | 465,000,000 | ||
Unrealized gains recognized on investments in equity securities without readily determinable fair values | 4,000,000 | ||
Unrealized losses recognized on investments in equity securities without readily determinable fair values | 10,000,000 | ||
Cumulative unrealized gains on investments | 172,000,000 | ||
Cumulative unrealized losses on investments | 21,000,000 | ||
Available-for-sale debt securities included in Short-term investments | 398,000,000 | ||
Available-for-sale debt securities maturing after one year through five years | 3,400,000,000 | ||
Cash and cash equivalents | 6,659,000,000 | $ 7,965,000,000 | |
Payments of contingent consideration | 85,000,000 | $ 235,000,000 | |
Fair value of loans payable and long-term debt, including current portion | 28,600,000,000 | 25,600,000,000 | |
Debt, Long-term and Short-term, Combined Amount | 26,600,000,000 | 25,100,000,000 | |
Cash collateral received from counterparties | 32,000,000 | 107,000,000 | |
Cash collateral advanced to counterparties | 0 | $ 0 | |
Significant Other Observable Inputs (Level 2) | |||
Derivative [Line Items] | |||
Cash and cash equivalents | 6,700,000,000 | ||
Cash equivalents | $ 5,900,000,000 | ||
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 | ||
gefapixant | |||
Derivative [Line Items] | |||
Payments of contingent consideration | $ 175,000,000 |
Financial Instruments - Effect
Financial Instruments - Effect of Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1) | $ 17 | $ (12) | $ 7 | $ (14) |
Foreign exchange contracts | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing | (8) | (3) | (15) | (3) |
Euro-denominated notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1) | 28 | (271) | (2) | (92) |
Euro-denominated notes | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Interest Rate Swaps Held (Details) | Jun. 30, 2019USD ($)interest_rate_swap | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Derivative [Line Items] | |||
Par Value of Debt | $ 5,000,000,000 | ||
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap | 19 | ||
Total Swap Notional Amount | $ 26,728,000,000 | $ 29,742,000,000 | |
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 Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Loans payable and current portion of long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Hedged Liabilities | $ 1,244 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount | (6) | 0 |
Long-Term Debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Hedged Liabilities | 3,406 | 4,560 |
Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount | $ 11 | $ (82) |
Financial Instruments - Fair _2
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, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | $ 301 | $ 454 |
Fair Value of Derivative, Liability | 84 | 160 |
U.S. Dollar Notional | 26,728 | 29,742 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 231 | 338 |
Fair Value of Derivative, Liability | 21 | 89 |
U.S. Dollar Notional | 15,081 | 14,390 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 70 | 116 |
Fair Value of Derivative, Liability | 63 | 71 |
U.S. Dollar Notional | 11,647 | 15,352 |
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 14 | 0 |
U.S. Dollar Notional | 2,150 | 0 |
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Liability | 6 | 0 |
U.S. Dollar Notional | 1,250 | 0 |
Interest rate swap contracts | Derivatives Designated as Hedging Instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Liability | 2 | 81 |
U.S. Dollar Notional | 1,250 | 4,650 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 49 | 75 |
U.S. Dollar Notional | 2,790 | 2,655 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Liability | 13 | 7 |
U.S. Dollar Notional | 1,252 | 774 |
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 | 89 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 168 | 263 |
U.S. Dollar Notional | 6,389 | 6,222 |
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Accrued and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Liability | 63 | 71 |
U.S. Dollar Notional | 4,982 | 9,922 |
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value of Derivative, Asset | 70 | 116 |
U.S. Dollar Notional | $ 6,665 | $ 5,430 |
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 ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts recognized in the consolidated balance sheet, asset | $ 301,000,000 | $ 454,000,000 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, asset | (69,000,000) | (121,000,000) |
Cash collateral received, asset | (32,000,000) | (107,000,000) |
Net amounts, asset | 200,000,000 | 226,000,000 |
Gross amounts recognized in the consolidated balance sheet, liability | 84,000,000 | 160,000,000 |
Gross amount subject to offset in master netting arrangements not offset in the consolidated balance sheet, liability | (69,000,000) | (121,000,000) |
Cash collateral received, liability | 0 | 0 |
Net amounts, liability | $ 15,000,000 | $ 39,000,000 |
Financial Instruments - Locatio
Financial Instruments - Location and Amount of Pretax (Gains) Losses of Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Sales | $ 11,760 | $ 10,465 | $ 22,575 | $ 20,502 |
Other (income) expense, net | 140 | (48) | 327 | (340) |
Other comprehensive income (loss) | (16) | (62) | 183 | 62 |
Interest rate swap contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of income (loss) recognized in OCI on derivatives | (1) | (1) | (5) | (2) |
Interest rate swap contracts | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedged items | 55 | (15) | 88 | (77) |
Derivatives designated as hedging instruments | (45) | 22 | (68) | 84 |
Amount of gain recognized in Other (income) expense, net on derivatives | (1) | (1) | (2) | (2) |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of income (loss) recognized in OCI on derivatives | 10 | 264 | (2) | 84 |
Increase (decrease) in Sales as a result of AOCI reclassifications | (75) | 73 | (119) | 166 |
Foreign exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Sales | $ 75 | $ (73) | $ 119 | $ (166) |
Financial Instruments - Income
Financial Instruments - Income Statement Effects on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign currency | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Derivative Pretax (Gain) Loss Recognized in Income | $ 2 | $ (195) | $ 120 | $ (167) |
Forecasted transactions | Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Derivative Pretax (Gain) Loss Recognized in Income | $ (6) | $ (14) | $ 4 | $ (5) |
Financial Instruments - Infor_2
Financial Instruments - Information on Available-for-sale Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | $ 4,076 | $ 4,076 | $ 7,340 | ||
Debt securities, unrealized gains | 50 | 50 | 6 | ||
Debt securities, unrealized losses | (3) | (3) | (85) | ||
Debt securities, fair value | 4,123 | 4,123 | 7,261 | ||
Publicly traded equity securities, fair value | 756 | 756 | 456 | ||
Total debt and publicly traded equity securities, fair value | 4,879 | 4,879 | 7,717 | ||
Unrealized net gain | (39) | $ 7 | 75 | $ 50 | |
Corporate notes and bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | 2,666 | 2,666 | 4,985 | ||
Debt securities, unrealized gains | 36 | 36 | 3 | ||
Debt securities, unrealized losses | (2) | (2) | (68) | ||
Debt securities, fair value | 2,700 | 2,700 | 4,920 | ||
Asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | 789 | 789 | 1,285 | ||
Debt securities, unrealized gains | 4 | 4 | 1 | ||
Debt securities, unrealized losses | (1) | (1) | (11) | ||
Debt securities, fair value | 792 | 792 | 1,275 | ||
U.S. government and agency securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | 575 | 575 | 895 | ||
Debt securities, unrealized gains | 10 | 10 | 2 | ||
Debt securities, unrealized losses | 0 | 0 | (5) | ||
Debt securities, fair value | 585 | 585 | 892 | ||
Foreign government bonds | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | 41 | 41 | 167 | ||
Debt securities, unrealized gains | 0 | 0 | 0 | ||
Debt securities, unrealized losses | 0 | 0 | (1) | ||
Debt securities, fair value | 41 | 41 | 166 | ||
Mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, amortized cost | 5 | 5 | 8 | ||
Debt securities, unrealized gains | 0 | 0 | 0 | ||
Debt securities, unrealized losses | 0 | 0 | 0 | ||
Debt securities, fair value | $ 5 | $ 5 | $ 8 |
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, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets | ||||
Investments | $ 4,123 | $ 7,261 | ||
Publicly traded equity securities | 756 | 456 | ||
Derivative assets | 301 | 454 | ||
Liabilities | ||||
Contingent consideration | 753 | 788 | $ 830 | $ 935 |
Derivative liabilities | 84 | 160 | ||
Corporate notes and bonds | ||||
Assets | ||||
Investments | 2,700 | 4,920 | ||
Asset-backed securities | ||||
Assets | ||||
Investments | $ 792 | 1,275 | ||
Liabilities | ||||
Primary weighted average life of collateral | 5 years | |||
U.S. government and agency securities | ||||
Assets | ||||
Investments | $ 585 | 892 | ||
Foreign government bonds | ||||
Assets | ||||
Investments | 41 | 166 | ||
Mortgage-backed securities | ||||
Assets | ||||
Investments | 5 | 8 | ||
Fair Value, Measurements, Recurring | ||||
Assets | ||||
Investments | 4,225 | 7,132 | ||
Other assets | 654 | 585 | ||
Derivative assets | 301 | 454 | ||
Total assets | 5,180 | 8,171 | ||
Liabilities | ||||
Contingent consideration | 753 | 788 | ||
Derivative liabilities | 84 | 160 | ||
Total liabilities | 837 | 948 | ||
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 129 | 241 | ||
Liabilities | ||||
Derivative liabilities | 73 | 74 | ||
Fair Value, Measurements, Recurring | Interest rate swap contracts | ||||
Assets | ||||
Derivative assets | 14 | 0 | ||
Fair Value, Measurements, Recurring | Currency options | ||||
Assets | ||||
Derivative assets | 158 | 213 | ||
Liabilities | ||||
Derivative liabilities | 3 | 5 | ||
Fair Value, Measurements, Recurring | Interest rate swap contracts | ||||
Liabilities | ||||
Derivative liabilities | 8 | 81 | ||
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets | ||||
Investments | 228 | 147 | ||
Other assets | 586 | 364 | ||
Derivative assets | 0 | 0 | ||
Total assets | 814 | 511 | ||
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) | 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 | ||
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | 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) | Interest rate swap contracts | ||||
Liabilities | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Investments | 3,997 | 6,985 | ||
Other assets | 68 | 221 | ||
Derivative assets | 301 | 454 | ||
Total assets | 4,366 | 7,660 | ||
Liabilities | ||||
Contingent consideration | 0 | 0 | ||
Derivative liabilities | 84 | 160 | ||
Total liabilities | 84 | 160 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 129 | 241 | ||
Liabilities | ||||
Derivative liabilities | 73 | 74 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap contracts | ||||
Assets | ||||
Derivative assets | 14 | 0 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Currency options | ||||
Assets | ||||
Derivative assets | 158 | 213 | ||
Liabilities | ||||
Derivative liabilities | 3 | 5 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap contracts | ||||
Liabilities | ||||
Derivative liabilities | 8 | 81 | ||
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 | 753 | 788 | ||
Derivative liabilities | 0 | 0 | ||
Total liabilities | 753 | 788 | ||
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 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Currency options | ||||
Assets | ||||
Derivative assets | 0 | 0 | ||
Liabilities | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap contracts | ||||
Liabilities | ||||
Derivative liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Corporate notes and bonds | ||||
Assets | ||||
Investments | 2,660 | 4,835 | ||
Other assets | 40 | 85 | ||
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 | 2,660 | 4,835 | ||
Other assets | 40 | 85 | ||
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 | Asset-backed securities | ||||
Assets | ||||
Investments | 788 | 1,253 | ||
Other assets | 4 | 22 | ||
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 | 788 | 1,253 | ||
Other assets | 4 | 22 | ||
Fair Value, Measurements, Recurring | Asset-backed securities | 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 | 508 | 731 | ||
Other assets | 77 | 161 | ||
Fair Value, Measurements, Recurring | U.S. government and agency securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets | ||||
Investments | 0 | 0 | ||
Other assets | 58 | 55 | ||
Fair Value, Measurements, Recurring | U.S. government and agency securities | Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Investments | 508 | 731 | ||
Other assets | 19 | 106 | ||
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 | Foreign government bonds | ||||
Assets | ||||
Investments | 41 | 166 | ||
Fair Value, Measurements, Recurring | Foreign government bonds | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets | ||||
Investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Foreign government bonds | Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Investments | 41 | 166 | ||
Fair Value, Measurements, Recurring | Foreign government bonds | Significant Unobservable Inputs (Level 3) | ||||
Assets | ||||
Investments | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||||
Assets | ||||
Other assets | 5 | 8 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets | ||||
Other assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Other assets | 5 | 8 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||||
Assets | ||||
Other assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Publicly traded equity securities | ||||
Assets | ||||
Publicly traded equity securities | 228 | 147 | ||
Other assets | 528 | 309 | ||
Fair Value, Measurements, Recurring | Publicly traded equity securities | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets | ||||
Publicly traded equity securities | 228 | 147 | ||
Other assets | 528 | 309 | ||
Fair Value, Measurements, Recurring | Publicly traded equity securities | Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Publicly traded equity securities | 0 | 0 | ||
Other assets | 0 | 0 | ||
Fair Value, Measurements, Recurring | Publicly traded equity securities | Significant Unobservable Inputs (Level 3) | ||||
Assets | ||||
Publicly traded equity securities | 0 | 0 | ||
Other assets | $ 0 | $ 0 |
Financial Instruments - Infor_3
Financial Instruments - Information About Changes in Liabilities for Contingent Consideration (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value, beginning balance | $ 788 | $ 935 |
Changes in estimated fair value | 50 | 122 |
Business Combination, Consideration Transferred, Liabilities Incurred | 0 | 8 |
Payments | (85) | (235) |
Fair value, ending balance | 753 | $ 830 |
Current liability | $ 114 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,750 | $ 1,658 |
Raw materials and work in process | 5,388 | 5,004 |
Supplies | 202 | 194 |
Total (approximates current cost) | 7,340 | 6,856 |
(Decrease) increase to LIFO costs | (29) | 1 |
Total current and noncurrent inventories | 7,311 | 6,857 |
Recognized as: | ||
Inventories | 5,847 | 5,440 |
Other assets | $ 1,464 | $ 1,417 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventories classified in Other assets | $ 1,464 | $ 1,417 |
Inventories Not Expected to be Sold Within One Year | ||
Inventory [Line Items] | ||
Inventories classified in Other assets | 1,300 | 1,400 |
Inventories Produced in Preparation for Product Launches | ||
Inventory [Line Items] | ||
Inventories classified in Other assets | $ 118 | $ 7 |
Loans Payable, Long-Term Debt_3
Loans Payable, Long-Term Debt and Leases - Debt Narrative (Details) | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 5,000,000,000 |
Net proceeds from offering | 5,000,000,000 |
2.90% Notes Due 2024 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 750,000,000 |
Stated interest rate (as percent) | 2.90% |
3.40% Notes Due 2029 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 1,750,000,000 |
Stated interest rate (as percent) | 3.40% |
3.90% Notes Due 2039 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 1,000,000,000 |
Stated interest rate (as percent) | 3.90% |
4.00% Notes Due 2049 | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 1,500,000,000 |
Stated interest rate (as percent) | 4.00% |
Loans Payable, Long-Term Debt_4
Loans Payable, Long-Term Debt and Leases Loans Payable, Long-Term Debt and Leases - Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted-average remaining lease term (in years) | 7 years 6 months | 7 years 6 months | ||
Operating lease cost | $ 82 | $ 165 | ||
Cash payments included in the measurement of operating lease liabilities | 65 | 138 | ||
Obligations associated with operating leases not yet commenced | $ 127 | $ 127 | ||
2019 | $ 188 | |||
2020 | 198 | |||
2021 | 150 | |||
2022 | 134 | |||
2023 | 84 | |||
Thereafter | $ 243 | |||
Facilities | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted-average remaining lease term (in years) | 8 years | 8 years | ||
Renewal term (in years) | 4 years | 4 years | ||
Vehicle | ||||
Lessee, Lease, Description [Line Items] | ||||
Weighted-average remaining lease term (in years) | 4 years | 4 years | ||
Subsequent Event | ||||
Lessee, Lease, Description [Line Items] | ||||
Obligations associated with operating leases not yet commenced | $ 72 | |||
Term for operating lease not yet commenced (in years) | 10 years |
Loans Payable, Long-Term Debt_5
Loans Payable, Long-Term Debt and Leases - Balance Sheet Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Loans Payable, Long-Term Debt and Leases [Abstract] | |
Other Assets | $ 1,063 |
Accrued and other current liabilities | 241 |
Other Noncurrent Liabilities | 752 |
Operating lease liability | $ 993 |
Weighted-average remaining lease term (in years) | 7 years 6 months |
Weighted-average discount rate (as percent) | 3.40% |
Loans Payable, Long-Term Debt_6
Loans Payable, Long-Term Debt and Leases Loans Payable, Long-Term Debt and Leases - Maturity Schedule (Details) $ in Millions | Jun. 30, 2019USD ($) |
Loans Payable, Long-Term Debt and Leases [Abstract] | |
2019 (excluding the six months ended June 30, 2019) | $ 138 |
2020 | 232 |
2021 | 172 |
2022 | 146 |
2023 | 98 |
Thereafter | 339 |
Total lease payments | 1,125 |
Less: imputed interest | (132) |
Operating lease liability | $ 993 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2014Case | Jun. 30, 2019USD ($)ClaimCase | Dec. 31, 2018USD ($) | |
Legal Defense Costs | |||
Loss Contingencies [Line Items] | |||
Legal defense costs reserve | $ | $ 260 | $ 245 | |
Fosamax | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | 3,900 | ||
Fosamax | Femur Fracture Litigation | Federal | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | 11 | ||
Loss contingency, claims dismissed, number (in legal matters) | 650 | 1,060 | |
Loss contingency, claims on appeal, number (in legal matters) | 515 | ||
Fosamax | Femur Fracture Litigation | New Jersey state court | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | 2,555 | ||
Fosamax | Femur Fracture Litigation | California state court | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | 275 | ||
Fosamax | Femur Fracture Litigation | Other state courts | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | 4 | ||
Januvia | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | Claim | 1,350 | ||
Januvia | Other state courts | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | Claim | 7 | ||
Januvia | Cases Company Agreed To Toll Statute Of Limitations | |||
Loss Contingencies [Line Items] | |||
Loss contingency, pending claims, number (in legal matters) | Claim | 50 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance (in shares) | 3,577,103,522 | ||||
Equity, beginning balance | $ 27,670 | $ 33,901 | $ 26,882 | $ 34,569 | |
Net income attributable to Merck & Co., Inc. | 2,670 | 1,707 | 5,585 | 2,443 | |
Adoption of new accounting standards | $ 48 | ||||
Other comprehensive income (loss), net of taxes | (16) | (62) | 183 | 62 | |
Cash dividends declared on common stock | (1,440) | (1,291) | (2,869) | (2,592) | |
Treasury stock shares purchased | (1,235) | (1,596) | (2,325) | (2,162) | |
Share-based compensation plans and other | 117 | 103 | 360 | 394 | |
Net income (loss) attributable to noncontrolling interests | (26) | 9 | $ (79) | 14 | |
Distributions attributable to noncontrolling interests | (5) | (10) | |||
Other changes in noncontrolling ownership interests | $ (3) | ||||
Shares, ending balance (in shares) | 3,577,103,522 | 3,577,103,522 | |||
Equity, ending balance | $ 27,737 | $ 32,766 | $ 27,737 | $ 32,766 | |
Cash dividends declared on common stock (in dollars per share) | $ 0.55 | $ 0.48 | $ 1.10 | $ 0.96 | |
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance (in shares) | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | 3,577,000,000 | |
Equity, beginning balance | $ 1,788 | $ 1,788 | $ 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 | 38,768 | 39,874 | 38,808 | 39,902 | |
Treasury stock shares purchased | 1,000 | 1,000 | |||
Share-based compensation plans and other | (284) | (133) | (324) | (161) | |
Equity, ending balance | 39,484 | 39,741 | 39,484 | 39,741 | |
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity, beginning balance | 44,065 | 41,107 | 42,579 | 41,350 | |
Net income attributable to Merck & Co., Inc. | 2,670 | 1,707 | 5,585 | 2,443 | |
Adoption of new accounting standards | 322 | ||||
Cash dividends declared on common stock | (1,440) | (1,291) | (2,869) | (2,592) | |
Equity, ending balance | 45,295 | 41,523 | 45,295 | 41,523 | |
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity, beginning balance | (5,346) | (5,060) | (5,545) | (4,910) | |
Adoption of new accounting standards | $ (274) | ||||
Other comprehensive income (loss), net of taxes | (16) | (62) | 183 | 62 | |
Equity, ending balance | $ (5,362) | $ (5,122) | $ (5,362) | $ (5,122) | |
Treasury Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares, beginning balance (in shares) | 994,000,000 | 885,000,000 | 985,000,000 | 880,000,000 | |
Equity, beginning balance | $ (51,736) | $ (44,041) | $ (50,929) | $ (43,794) | |
Treasury stock shares purchased (in shares) | 24,000,000 | 27,000,000 | 38,000,000 | 37,000,000 | |
Treasury stock shares purchased | $ (2,235) | $ (1,596) | $ (3,325) | $ (2,162) | |
Share-based compensation plans and other (in shares) | (8,000,000) | (5,000,000) | (13,000,000) | (10,000,000) | |
Share-based compensation plans and other | $ 401 | $ 236 | $ 684 | $ 555 | |
Shares, ending balance (in shares) | 1,010,000,000 | 907,000,000 | 1,010,000,000 | 907,000,000 | |
Equity, ending balance | $ (53,570) | $ (45,401) | $ (53,570) | $ (45,401) | |
Non- Controlling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity, beginning balance | 131 | 233 | 181 | 233 | |
Net income (loss) attributable to noncontrolling interests | (26) | 9 | (79) | 14 | |
Distributions attributable to noncontrolling interests | (5) | (10) | |||
Other changes in noncontrolling ownership interests | (3) | ||||
Equity, ending balance | $ 102 | $ 237 | $ 102 | $ 237 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Oct. 29, 2018 | Apr. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Oct. 25, 2018 |
Accelerated Share Repurchases [Line Items] | ||||||||
Treasury stock shares acquired | $ 1,235 | $ 1,596 | $ 2,325 | $ 2,162 | ||||
Accelerated Share Repurchase Agreement | ||||||||
Accelerated Share Repurchases [Line Items] | ||||||||
Share repurchase program authorized amount | $ 5,000 | |||||||
Treasury stock shares purchased (in shares) | 56.7 | 7.7 | 64.4 | |||||
Payment under ASR agreement | $ 5,000 | |||||||
Treasury stock shares acquired | 4,000 | |||||||
Decrease in other-paid-in capital | $ 1,000 |
Share-Based Compensation Plan_2
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Pretax share-based compensation expense | $ 111 | $ 90 | $ 204 | $ 170 |
Income tax benefit | (15) | (13) | (28) | (28) |
Total share-based compensation expense, net of taxes | $ 96 | $ 77 | $ 176 | $ 142 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 3,000 | 3,000 |
Weighted- average exercise price of options granted in period (in dollars per share) | $ 80 | $ 57.72 |
Weighted- average fair value per option granted (in dollars per share) | $ 10.63 | $ 8.19 |
Total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards | $ 800 | |
Weighted average period in years of recognition for nonvested stock options, RSU and PSU awards | 2 years 2 months 12 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 6,000 | 7,000 |
Weighted-average fair value per share granted (in dollars per share) | $ 76.31 | $ 58.15 |
Performance Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 609 | 855 |
Weighted-average fair value per share granted (in dollars per share) | $ 90.50 | $ 56.70 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Assumptions Used to Determine Weighted-Average Fair Value of Options Granted (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Expected dividend yield | 3.20% | 3.40% |
Risk-free interest rate | 2.40% | 2.80% |
Expected volatility | 18.70% | 19.10% |
Expected life (years) | 5 years 10 months 24 days | 6 years 1 month 6 days |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 12 | $ 14 | $ 24 | $ 28 |
Interest cost | 18 | 18 | 35 | 35 |
Expected return on plan assets | (18) | (21) | (36) | (41) |
Amortization of unrecognized prior service credit | (21) | (21) | (43) | (42) |
Termination benefits | 0 | 1 | 0 | 2 |
Curtailments | (1) | (2) | (1) | (6) |
Net periodic benefit cost | (10) | (11) | (21) | (24) |
U.S. | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 74 | 85 | 144 | 168 |
Interest cost | 113 | 107 | 228 | 215 |
Expected return on plan assets | (205) | (211) | (411) | (425) |
Amortization of unrecognized prior service credit | (12) | (13) | (25) | (25) |
Net loss amortization | 35 | 56 | 70 | 112 |
Termination benefits | 3 | 7 | 5 | 17 |
Curtailments | 0 | 5 | 1 | 3 |
Settlements | 0 | 0 | 0 | 1 |
Net periodic benefit cost | 8 | 36 | 12 | 66 |
International | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 60 | 58 | 120 | 125 |
Interest cost | 44 | 45 | 89 | 91 |
Expected return on plan assets | (107) | (108) | (214) | (221) |
Amortization of unrecognized prior service credit | (3) | (3) | (6) | (7) |
Net loss amortization | 16 | 21 | 31 | 43 |
Termination benefits | 1 | 0 | 1 | 0 |
Curtailments | 0 | (1) | 0 | (1) |
Settlements | 0 | 4 | 0 | 4 |
Net periodic benefit cost | $ 11 | $ 16 | $ 21 | $ 34 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ (75) | $ (81) | $ (164) | $ (165) |
Interest expense | 233 | 194 | 442 | 379 |
Exchange losses | 27 | 71 | 128 | 77 |
Loss (income) from investments in equity securities | (58) | (153) | (32) | (178) |
Net periodic defined benefit plan (credit) cost other than service cost | (140) | (130) | (281) | (265) |
Other, net | 153 | 51 | 234 | (188) |
Other (income) expense, net | $ 140 | $ (48) | $ 327 | $ (340) |
Other (Income) Expense, Net - N
Other (Income) Expense, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |||
Goodwill impairment charges | $ 78 | $ 162 | |
Gain on settlement | $ 115 | ||
Interest paid | $ 356 | $ 341 |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Examination [Line Items] | ||||||
Effective income tax rate (as percent) | 18.90% | 17.80% | 13.00% | 28.40% | ||
Research and development | $ 2,189 | $ 2,274 | $ 4,119 | $ 5,470 | ||
Eisai | ||||||
Income Tax Examination [Line Items] | ||||||
Research and development | $ 1,400 | $ 1,400 | ||||
Internal Revenue Service (IRS) | Domestic Tax Authority | ||||||
Income Tax Examination [Line Items] | ||||||
Tax benefit recognized related to settlement | $ 360 | |||||
Income taxes paid | $ 107 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Merck & Co., Inc. | $ 2,670 | $ 1,707 | $ 5,585 | $ 2,443 |
Average common shares outstanding (in shares) | 2,574 | 2,683 | 2,579 | 2,689 |
Common shares issuable (in shares) | 14 | 13 | 17 | 13 |
Average common shares outstanding assuming dilution (in shares) | 2,588 | 2,696 | 2,596 | 2,702 |
Basic earnings per common share attributable to Merck & Co., Inc. common shareholders (in dollars per share) | $ 1.04 | $ 0.64 | $ 2.17 | $ 0.91 |
Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders (in dollars per share) | $ 1.03 | $ 0.63 | $ 2.15 | $ 0.90 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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) | 3 | 13 | 4 | 15 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Changes in AOCI by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | $ 27,670 | $ 33,901 | $ 26,882 | $ 34,569 | |
Other comprehensive income (loss) before reclassification adjustments, pretax | 40 | (54) | 258 | (33) | |
Tax | 4 | (115) | 7 | (135) | |
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 44 | (169) | 265 | (168) | |
Reclassification adjustments, pretax | (73) | 132 | (101) | 281 | |
Tax | 13 | (25) | 19 | (51) | |
Reclassification adjustments, net of taxes | (60) | 107 | (82) | 230 | |
Other comprehensive income (loss), net of taxes | (16) | (62) | 183 | 62 | |
Adoption of ASU 2018-02 | (266) | ||||
Adoption of ASU 2016-01 | $ (8) | ||||
Equity, ending balance | 27,737 | 32,766 | 27,737 | 32,766 | |
Derivatives | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | 118 | (201) | 166 | (108) | |
Other comprehensive income (loss) before reclassification adjustments, pretax | 10 | 265 | (3) | 84 | |
Tax | (2) | (56) | 1 | (18) | |
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 8 | 209 | (2) | 66 | |
Reclassification adjustments, pretax | (76) | 72 | (124) | 164 | |
Tax | 16 | (15) | 26 | (34) | |
Reclassification adjustments, net of taxes | (60) | 57 | (98) | 130 | |
Other comprehensive income (loss), net of taxes | (52) | 266 | (100) | 196 | |
Adoption of ASU 2018-02 | (23) | ||||
Adoption of ASU 2016-01 | 0 | ||||
Equity, ending balance | 66 | 65 | 66 | 65 | |
Investments | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | 4 | (167) | (78) | (61) | |
Other comprehensive income (loss) before reclassification adjustments, pretax | 55 | (17) | 131 | (133) | |
Tax | 0 | 0 | 0 | 1 | |
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 55 | (17) | 131 | (132) | |
Reclassification adjustments, pretax | (11) | 20 | (5) | 36 | |
Tax | 0 | 0 | 0 | 0 | |
Reclassification adjustments, net of taxes | (11) | 20 | (5) | 36 | |
Other comprehensive income (loss), net of taxes | 44 | 3 | 126 | (96) | |
Adoption of ASU 2018-02 | 1 | ||||
Adoption of ASU 2016-01 | (8) | ||||
Equity, ending balance | 48 | (164) | 48 | (164) | |
Employee Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | (3,541) | (3,095) | (3,556) | (2,787) | |
Other comprehensive income (loss) before reclassification adjustments, pretax | 0 | (1) | (1) | (2) | |
Tax | 0 | 1 | 6 | 4 | |
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 0 | 0 | 5 | 2 | |
Reclassification adjustments, pretax | 14 | 40 | 28 | 81 | |
Tax | (3) | (10) | (7) | (17) | |
Reclassification adjustments, net of taxes | 11 | 30 | 21 | 64 | |
Other comprehensive income (loss), net of taxes | 11 | 30 | 26 | 66 | |
Adoption of ASU 2018-02 | (344) | ||||
Adoption of ASU 2016-01 | 0 | ||||
Equity, ending balance | (3,530) | (3,065) | (3,530) | (3,065) | |
Cumulative Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | (1,927) | (1,597) | (2,077) | (1,954) | |
Other comprehensive income (loss) before reclassification adjustments, pretax | (25) | (301) | 131 | 18 | |
Tax | 6 | (60) | 0 | (122) | |
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (19) | (361) | 131 | (104) | |
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 | (19) | (361) | 131 | (104) | |
Adoption of ASU 2018-02 | 100 | ||||
Adoption of ASU 2016-01 | $ 0 | ||||
Equity, ending balance | (1,946) | (1,958) | (1,946) | (1,958) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Equity, beginning balance | (5,346) | (5,060) | (5,545) | (4,910) | |
Equity, ending balance | $ (5,362) | $ (5,122) | $ (5,362) | $ (5,122) |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Billions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 4 | |||
Sales discounts | $ | $ 2.9 | $ 2.8 | $ 5.5 | $ 5.2 |
Segment Reporting - Sales of Co
Segment Reporting - Sales of Company's Products (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 11,760 | $ 10,465 | $ 22,575 | $ 20,502 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 11,632 | 10,428 | 22,359 | 20,496 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 128 | 37 | 216 | 6 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 5,144 | 4,262 | 9,659 | 8,395 |
United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 5,140 | 4,208 | 9,647 | 8,315 |
United States | Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4 | 54 | 12 | 80 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 6,616 | 6,203 | 12,917 | 12,107 |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 6,491 | 6,221 | 12,711 | 12,181 |
International | Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 125 | (18) | 206 | (74) |
Total Pharmaceutical segment sales | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 10,460 | 9,282 | 20,123 | 18,201 |
Total Pharmaceutical segment sales | Operating Segments | Keytruda | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,634 | 1,667 | 4,903 | 3,131 |
Total Pharmaceutical segment sales | Operating Segments | Emend | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 121 | 148 | 237 | 273 |
Total Pharmaceutical segment sales | Operating Segments | Alliance revenue - Lynparza | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 111 | 44 | 190 | 76 |
Total Pharmaceutical segment sales | Operating Segments | Alliance revenue - Lenvima | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 97 | 35 | 171 | 35 |
Total Pharmaceutical segment sales | Operating Segments | Gardasil/Gardasil 9 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 886 | 608 | 1,724 | 1,269 |
Total Pharmaceutical segment sales | Operating Segments | ProQuad/M-M-R II/Varivax | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 675 | 426 | 1,171 | 818 |
Total Pharmaceutical segment sales | Operating Segments | RotaTeq | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 172 | 156 | 383 | 349 |
Total Pharmaceutical segment sales | Operating Segments | Pneumovax 23 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 170 | 193 | 355 | 372 |
Total Pharmaceutical segment sales | Operating Segments | Vaqta | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 58 | 65 | 105 | 101 |
Total Pharmaceutical segment sales | Operating Segments | Bridion | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 278 | 240 | 533 | 444 |
Total Pharmaceutical segment sales | Operating Segments | Noxafil | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 193 | 188 | 383 | 363 |
Total Pharmaceutical segment sales | Operating Segments | Cubicin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 67 | 94 | 155 | 192 |
Total Pharmaceutical segment sales | Operating Segments | Invanz | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 78 | 149 | 150 | 300 |
Total Pharmaceutical segment sales | Operating Segments | Primaxin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 71 | 68 | 130 | 140 |
Total Pharmaceutical segment sales | Operating Segments | Cancidas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 67 | 87 | 129 | 178 |
Total Pharmaceutical segment sales | Operating Segments | Simponi | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 214 | 233 | 422 | 464 |
Total Pharmaceutical segment sales | Operating Segments | Remicade | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 98 | 157 | 221 | 324 |
Total Pharmaceutical segment sales | Operating Segments | Belsomra | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 76 | 71 | 143 | 125 |
Total Pharmaceutical segment sales | Operating Segments | Isentress/Isentress HD | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 247 | 305 | 502 | 586 |
Total Pharmaceutical segment sales | Operating Segments | Zepatier | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 108 | 113 | 221 | 243 |
Total Pharmaceutical segment sales | Operating Segments | Zetia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 156 | 226 | 296 | 531 |
Total Pharmaceutical segment sales | Operating Segments | Vytorin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 76 | 155 | 174 | 322 |
Total Pharmaceutical segment sales | Operating Segments | Atozet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 92 | 101 | 186 | 174 |
Total Pharmaceutical segment sales | Operating Segments | Adempas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 104 | 75 | 194 | 143 |
Total Pharmaceutical segment sales | Operating Segments | Januvia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 908 | 949 | 1,732 | 1,829 |
Total Pharmaceutical segment sales | Operating Segments | Janumet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 533 | 585 | 1,063 | 1,129 |
Total Pharmaceutical segment sales | Operating Segments | NuvaRing | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 240 | 236 | 459 | 452 |
Total Pharmaceutical segment sales | Operating Segments | Implanon/Nexplanon | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 183 | 174 | 382 | 348 |
Total Pharmaceutical segment sales | Operating Segments | Singulair | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 160 | 185 | 352 | 360 |
Total Pharmaceutical segment sales | Operating Segments | Cozaar/Hyzaar | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 109 | 125 | 213 | 245 |
Total Pharmaceutical segment sales | Operating Segments | Nasonex | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 72 | 81 | 168 | 203 |
Total Pharmaceutical segment sales | Operating Segments | Arcoxia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 75 | 84 | 149 | 166 |
Total Pharmaceutical segment sales | Operating Segments | Follistim AQ | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 63 | 70 | 121 | 138 |
Total Pharmaceutical segment sales | Operating Segments | Other Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,268 | 1,189 | 2,406 | 2,378 |
Total Pharmaceutical segment sales | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,758 | 3,841 | 8,933 | 7,557 |
Total Pharmaceutical segment sales | United States | Operating Segments | Keytruda | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,498 | 959 | 2,782 | 1,797 |
Total Pharmaceutical segment sales | United States | Operating Segments | Emend | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 67 | 89 | 130 | 168 |
Total Pharmaceutical segment sales | United States | Operating Segments | Alliance revenue - Lynparza | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 66 | 31 | 116 | 55 |
Total Pharmaceutical segment sales | United States | Operating Segments | Alliance revenue - Lenvima | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 54 | 19 | 104 | 19 |
Total Pharmaceutical segment sales | United States | Operating Segments | Gardasil/Gardasil 9 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 456 | 302 | 818 | 682 |
Total Pharmaceutical segment sales | United States | Operating Segments | ProQuad/M-M-R II/Varivax | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 500 | 356 | 843 | 668 |
Total Pharmaceutical segment sales | United States | Operating Segments | RotaTeq | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 104 | 99 | 258 | 250 |
Total Pharmaceutical segment sales | United States | Operating Segments | Pneumovax 23 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 123 | 122 | 248 | 234 |
Total Pharmaceutical segment sales | United States | Operating Segments | Vaqta | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 38 | 42 | 67 | 60 |
Total Pharmaceutical segment sales | United States | Operating Segments | Bridion | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 129 | 95 | 248 | 175 |
Total Pharmaceutical segment sales | United States | Operating Segments | Noxafil | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 100 | 87 | 191 | 168 |
Total Pharmaceutical segment sales | United States | Operating Segments | Cubicin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 22 | 48 | 64 | 95 |
Total Pharmaceutical segment sales | United States | Operating Segments | Invanz | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 18 | 87 | 31 | 177 |
Total Pharmaceutical segment sales | United States | Operating Segments | Primaxin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 1 | 5 |
Total Pharmaceutical segment sales | United States | Operating Segments | Cancidas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3 | 4 | 4 | 7 |
Total Pharmaceutical segment sales | United States | Operating Segments | Simponi | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Total Pharmaceutical segment sales | United States | Operating Segments | Remicade | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Total Pharmaceutical segment sales | United States | Operating Segments | Belsomra | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 21 | 29 | 45 | 52 |
Total Pharmaceutical segment sales | United States | Operating Segments | Isentress/Isentress HD | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 94 | 132 | 202 | 260 |
Total Pharmaceutical segment sales | United States | Operating Segments | Zepatier | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 39 | (10) | 72 | (10) |
Total Pharmaceutical segment sales | United States | Operating Segments | Zetia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 6 | 8 | 6 | 25 |
Total Pharmaceutical segment sales | United States | Operating Segments | Vytorin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3 | 3 | 6 | 11 |
Total Pharmaceutical segment sales | United States | Operating Segments | Atozet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Total Pharmaceutical segment sales | United States | Operating Segments | Adempas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Total Pharmaceutical segment sales | United States | Operating Segments | Januvia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 471 | 503 | 855 | 968 |
Total Pharmaceutical segment sales | United States | Operating Segments | Janumet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 166 | 209 | 333 | 401 |
Total Pharmaceutical segment sales | United States | Operating Segments | NuvaRing | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 206 | 187 | 391 | 357 |
Total Pharmaceutical segment sales | United States | Operating Segments | Implanon/Nexplanon | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 136 | 114 | 285 | 242 |
Total Pharmaceutical segment sales | United States | Operating Segments | Singulair | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 8 | 5 | 13 | 11 |
Total Pharmaceutical segment sales | United States | Operating Segments | Cozaar/Hyzaar | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 6 | 7 | 10 | 14 |
Total Pharmaceutical segment sales | United States | Operating Segments | Nasonex | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (1) | 0 | (2) | 2 |
Total Pharmaceutical segment sales | United States | Operating Segments | Arcoxia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Total Pharmaceutical segment sales | United States | Operating Segments | Follistim AQ | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 24 | 27 | 53 | 56 |
Total Pharmaceutical segment sales | United States | Operating Segments | Other Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 401 | 287 | 759 | 608 |
Total Pharmaceutical segment sales | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 5,702 | 5,442 | 11,190 | 10,644 |
Total Pharmaceutical segment sales | International | Operating Segments | Keytruda | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,136 | 707 | 2,121 | 1,333 |
Total Pharmaceutical segment sales | International | Operating Segments | Emend | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 54 | 59 | 107 | 105 |
Total Pharmaceutical segment sales | International | Operating Segments | Alliance revenue - Lynparza | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 45 | 13 | 74 | 22 |
Total Pharmaceutical segment sales | International | Operating Segments | Alliance revenue - Lenvima | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 43 | 16 | 67 | 16 |
Total Pharmaceutical segment sales | International | Operating Segments | Gardasil/Gardasil 9 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 430 | 306 | 906 | 586 |
Total Pharmaceutical segment sales | International | Operating Segments | ProQuad/M-M-R II/Varivax | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 174 | 70 | 328 | 150 |
Total Pharmaceutical segment sales | International | Operating Segments | RotaTeq | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 68 | 57 | 125 | 99 |
Total Pharmaceutical segment sales | International | Operating Segments | Pneumovax 23 | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 47 | 71 | 107 | 137 |
Total Pharmaceutical segment sales | International | Operating Segments | Vaqta | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 20 | 23 | 39 | 42 |
Total Pharmaceutical segment sales | International | Operating Segments | Bridion | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 149 | 145 | 285 | 269 |
Total Pharmaceutical segment sales | International | Operating Segments | Noxafil | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 93 | 100 | 192 | 195 |
Total Pharmaceutical segment sales | International | Operating Segments | Cubicin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 45 | 46 | 91 | 97 |
Total Pharmaceutical segment sales | International | Operating Segments | Invanz | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 60 | 63 | 118 | 123 |
Total Pharmaceutical segment sales | International | Operating Segments | Primaxin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 70 | 68 | 129 | 135 |
Total Pharmaceutical segment sales | International | Operating Segments | Cancidas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 64 | 83 | 125 | 171 |
Total Pharmaceutical segment sales | International | Operating Segments | Simponi | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 214 | 233 | 422 | 464 |
Total Pharmaceutical segment sales | International | Operating Segments | Remicade | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 98 | 157 | 221 | 324 |
Total Pharmaceutical segment sales | International | Operating Segments | Belsomra | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 55 | 42 | 98 | 73 |
Total Pharmaceutical segment sales | International | Operating Segments | Isentress/Isentress HD | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 153 | 174 | 300 | 326 |
Total Pharmaceutical segment sales | International | Operating Segments | Zepatier | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 68 | 123 | 149 | 253 |
Total Pharmaceutical segment sales | International | Operating Segments | Zetia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 150 | 218 | 290 | 505 |
Total Pharmaceutical segment sales | International | Operating Segments | Vytorin | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 73 | 152 | 167 | 311 |
Total Pharmaceutical segment sales | International | Operating Segments | Atozet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 92 | 101 | 186 | 174 |
Total Pharmaceutical segment sales | International | Operating Segments | Adempas | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 104 | 75 | 194 | 143 |
Total Pharmaceutical segment sales | International | Operating Segments | Januvia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 437 | 446 | 877 | 862 |
Total Pharmaceutical segment sales | International | Operating Segments | Janumet | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 366 | 377 | 730 | 729 |
Total Pharmaceutical segment sales | International | Operating Segments | NuvaRing | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 34 | 49 | 68 | 95 |
Total Pharmaceutical segment sales | International | Operating Segments | Implanon/Nexplanon | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 48 | 60 | 98 | 106 |
Total Pharmaceutical segment sales | International | Operating Segments | Singulair | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 153 | 180 | 338 | 350 |
Total Pharmaceutical segment sales | International | Operating Segments | Cozaar/Hyzaar | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 103 | 118 | 202 | 231 |
Total Pharmaceutical segment sales | International | Operating Segments | Nasonex | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 73 | 81 | 170 | 201 |
Total Pharmaceutical segment sales | International | Operating Segments | Arcoxia | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 75 | 84 | 149 | 166 |
Total Pharmaceutical segment sales | International | Operating Segments | Follistim AQ | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 39 | 43 | 67 | 81 |
Total Pharmaceutical segment sales | International | Operating Segments | Other Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 869 | 902 | 1,650 | 1,770 |
Total Animal Health segment sales | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,124 | 1,090 | 2,149 | 2,155 |
Total Animal Health segment sales | Operating Segments | Livestock | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 671 | 633 | 1,282 | 1,286 |
Total Animal Health segment sales | Operating Segments | Companion Animals | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 453 | 457 | 867 | 869 |
Total Animal Health segment sales | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 335 | 311 | 628 | 618 |
Total Animal Health segment sales | United States | Operating Segments | Livestock | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 145 | 107 | 261 | 231 |
Total Animal Health segment sales | United States | Operating Segments | Companion Animals | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 190 | 204 | 367 | 387 |
Total Animal Health segment sales | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 789 | 779 | 1,521 | 1,537 |
Total Animal Health segment sales | International | Operating Segments | Livestock | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 526 | 526 | 1,021 | 1,055 |
Total Animal Health segment sales | International | Operating Segments | Companion Animals | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 263 | 253 | 500 | 482 |
Other segment sales | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 48 | 56 | 87 | 140 |
Other segment sales | United States | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 47 | 56 | 86 | 140 |
Other segment sales | International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Consolidate
Segment Reporting - Consolidated Revenues by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Sales | $ 11,760 | $ 10,465 | $ 22,575 | $ 20,502 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 5,144 | 4,262 | 9,659 | 8,395 |
Europe, Middle East and Africa | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 3,163 | 3,144 | 6,265 | 6,334 |
Japan | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 921 | 855 | 1,720 | 1,592 |
China | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 763 | 559 | 1,509 | 1,045 |
Asia Pacific (other than Japan and China) | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 716 | 791 | 1,461 | 1,543 |
Latin America | ||||
Revenue from External Customer [Line Items] | ||||
Sales | 658 | 594 | 1,219 | 1,126 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 395 | $ 260 | $ 742 | $ 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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Profits | $ 3,259 | $ 2,086 | $ 6,326 | $ 3,432 |
Interest income | 75 | 81 | 164 | 165 |
Interest expense | (233) | (194) | (442) | (379) |
Depreciation and amortization | (1,871) | (2,427) | ||
Research and development | (2,189) | (2,274) | (4,119) | (5,470) |
Restructuring costs | (59) | (228) | (212) | (323) |
Total segment profits | ||||
Segment Reporting Information [Line Items] | ||||
Profits | 7,518 | 6,451 | 14,510 | 12,866 |
Total segment profits | Pharmaceutical segment | ||||
Segment Reporting Information [Line Items] | ||||
Profits | 7,115 | 5,975 | 13,690 | 11,914 |
Total segment profits | Animal Health segment | ||||
Segment Reporting Information [Line Items] | ||||
Profits | 405 | 450 | 820 | 864 |
Total segment profits | Other segments | ||||
Segment Reporting Information [Line Items] | ||||
Profits | (2) | 26 | 0 | 88 |
Other profits (losses) | ||||
Segment Reporting Information [Line Items] | ||||
Profits | 94 | (2) | 124 | (89) |
Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 75 | 81 | 164 | 165 |
Interest expense | (233) | (194) | (442) | (379) |
Depreciation and amortization | (427) | (332) | (786) | (682) |
Research and development | (2,093) | (2,190) | (3,935) | (5,307) |
Amortization of purchase accounting adjustments | (378) | (732) | (775) | (1,464) |
Restructuring costs | (59) | (228) | (212) | (323) |
Other unallocated, net | $ (1,238) | $ (768) | $ (2,322) | $ (1,355) |