Merck & Co. (MRK) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 30, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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	126 East Lincoln Avenue
Entity Address, City or Town	Rahway
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07065
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		2,537,435,954
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000310158
Current Fiscal Year End Date	--12-31
Common Stock ($0.50 par value)
Entity Information [Line Items]
Title of 12(b) Security	Common Stock ($0.50 par value)
Trading Symbol	MRK
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
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Sales	$ 14,487	$ 15,901
Costs, Expenses and Other
Cost of sales	3,926	5,380
Selling, general and administrative	2,479	2,323
Research and development	4,276	2,576
Restructuring costs	67	53
Other (income) expense, net	89	708
Total Costs, Expenses and Other	10,837	11,040
Income Before Taxes	3,650	4,861
Taxes on Income	825	554
Net Income	2,825	4,307
Less: Net Income (Loss) Attributable to Noncontrolling Interests	4	(3)
Net Income Attributable to Merck & Co., Inc.	$ 2,821	$ 4,310
Basic Earnings Per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ 1.11	$ 1.70
Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ 1.11	$ 1.70

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net Income Attributable to Merck & Co., Inc.	$ 2,821	$ 4,310
Other Comprehensive (Loss) Income Net of Taxes:
Net unrealized (loss) gain on derivatives, net of reclassifications	(133)	63
Benefit plan net (loss) gain and prior service (cost) credit, net of amortization	(50)	32
Cumulative translation adjustment	68	(35)
Other comprehensive income (loss), net of taxes	(115)	60
Comprehensive Income Attributable to Merck & Co., Inc.	$ 2,706	$ 4,370

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 9,707	$ 12,694
Short-term investments	680	498
Accounts receivable (net of allowance for doubtful accounts of $76 in 2023 and $72 in 2022)	10,415	9,450
Inventories (excludes inventories of $3,284 in 2023 and $2,938 in 2022 classified in Other assets - see Note 7)	5,863	5,911
Other current assets	6,737	7,169
Total current assets	33,402	35,722
Investments	1,290	1,015
Property, Plant and Equipment, at cost, net of accumulated depreciation of $18,256 in 2023 and $17,985 in 2022	21,758	21,422
Goodwill	21,209	21,204
Other Intangibles, Net	19,857	20,269
Other Assets	10,280	9,528
Total Assets	107,796	109,160
Current Liabilities
Loans payable and current portion of long-term debt	2,672	1,946
Trade accounts payable	3,680	4,264
Accrued and other current liabilities	13,000	14,159
Income taxes payable	1,872	1,986
Dividends payable	1,907	1,884
Total current liabilities	23,131	24,239
Long-Term Debt	28,074	28,745
Deferred Income Taxes	1,442	1,795
Other Noncurrent Liabilities	8,244	8,323
Merck & Co., Inc. Stockholders’ Equity
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2023 and 2022	1,788	1,788
Other paid-in capital	44,467	44,379
Retained earnings	62,039	61,081
Accumulated other comprehensive loss	(4,883)	(4,768)
Stockholders' equity before deduction for treasury stock	103,411	102,480
Less treasury stock, at cost: 1,039,651,210 shares in 2023 and 1,039,269,638 shares in 2022	56,577	56,489
Total Merck & Co., Inc. stockholders’ equity	46,834	45,991
Noncontrolling Interests	71	67
Total equity	46,905	46,058
Liabilities and Equity	$ 107,796	$ 109,160

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 76	$ 72
Inventories classified in Other assets	3,284	2,938
Accumulated depreciation	$ 18,256	$ 17,985
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized (shares)	6,500,000,000	6,500,000,000
Common stock, issued (in shares)	3,577,103,522	3,577,103,522
Treasury stock (in shares)	1,039,651,210	1,039,269,638

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net income	$ 2,825	$ 4,307
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization	543	699
Depreciation	448	421
(Income) loss from investments in equity securities, net	(450)	708
Charge for the acquisition of Imago BioSciences, Inc.	1,192	0
Deferred income taxes	(277)	(338)
Share-based compensation	145	120
Other	(197)	143
Net changes in assets and liabilities	(2,890)	(1,299)
Net Cash Provided by Operating Activities	1,339	4,761
Cash Flows from Investing Activities
Capital expenditures	(1,007)	(984)
Purchases of securities and other investments	(562)	(372)
Proceeds from sales of securities and other investments	500	1
Acquisition of Imago BioSciences, Inc., net of cash acquired	(1,327)	0
Other	37	182
Net Cash Used in Investing Activities	(2,359)	(1,173)
Cash Flows from Financing Activities
Payments on debt	(1)	(1,250)
Purchases of treasury stock	(149)	0
Dividends paid to stockholders	(1,853)	(1,745)
Proceeds from exercise of stock options	30	12
Other	(81)	(103)
Net Cash Used in Financing Activities	(2,054)	(3,086)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	87	(55)
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash	(2,987)	447
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes restricted cash of $79 and $71 at January 1, 2023 and 2022, respectively, included in Other current assets)	12,773	8,167
Cash, Cash Equivalents and Restricted Cash at End of Period (includes restricted cash of $79 and $58 at March 31, 2023 and 2022, respectively, included in Other current assets)	$ 9,786	$ 8,614

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Statement of Cash Flows [Abstract]
Restricted cash	$ 79	$ 79	$ 58	$ 71

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
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 (U.S.) (GAAP) 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 24, 2023. 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 year presentation. Recently Adopted Accounting Standard In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The Company adopted the guidance effective January 1, 2023. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. Recently Issued Accounting Standard Not Yet Adopted

Spin-Off of Organon & Co.

Spin-Off of Organon & Co.	3 Months Ended
	Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Spin-Off of Organon & Co.	Spin-Off of Organon & Co. On June 2, 2021, Merck completed the spin-off of Organon through a distribution of Organon’s publicly traded stock to Company shareholders. In connection with the spin-off, Merck and Organon entered into a separation and distribution agreement and also entered into various other agreements to effect the spin-off and provide a framework for the relationship between Merck and Organon after the spin-off, including a transition services agreement (TSA), manufacturing and supply agreements (MSAs), trademark license agreements, intellectual property license agreements, an employee matters agreement, a tax matters agreement and certain other commercial agreements. Under the TSA, Merck is providing Organon various services and, similarly, Organon is providing Merck various services. The provision of services under the TSA generally will terminate within 25 months following the spin-off; however, the provision of certain services has been extended to 35 months. Merck and Organon also entered into a series of interim operating agreements pursuant to which in various jurisdictions where Merck held licenses, permits and other rights in connection with marketing, import and/or distribution of Organon products prior to the separation, Merck is continuing to market, import and distribute such products until such time as the relevant licenses and permits are transferred to Organon. Under such interim operating agreements and in accordance with the separation and distribution agreement, Merck is continuing operations in the affected markets on behalf of Organon, with Organon receiving all of the economic benefits and burdens of such activities. Additionally, Merck and Organon entered into a number of MSAs pursuant to which Merck is (a) manufacturing and supplying certain active pharmaceutical ingredients for Organon, (b) manufacturing and supplying certain formulated pharmaceutical products for Organon, and (c) packaging and labeling certain finished pharmaceutical products for Organon. Similarly, Organon and Merck entered into a number of MSAs pursuant to which Organon is (a) manufacturing and supplying certain formulated pharmaceutical products for Merck, and (b) packaging and labeling certain finished pharmaceutical products for Merck. The terms of the MSAs range in initial duration from four years to ten years. The amounts included in the condensed consolidated statement of income for the above MSAs include sales of $94 million and $99 million and related cost of sales of $107 million and $105 million for the first quarter of 2023 and 2022, respectively. Amounts included in the condensed consolidated statement of income for the TSAs were immaterial for both the first quarter of 2023 and 2022. The amounts due from Organon under all of the above agreements were $473 million and $511 million at March 31, 2023 and December 31, 2022, respectively, and are reflected in Other current assets . The amounts due to Organon under these agreements were $229 million and $345 million at March 31, 2023 and December 31, 2022, respectively, and are included in Accrued and other current liabilities .

Acquisitions, Research Collabor

Acquisitions, Research Collaborations and License Agreements	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Research Collaborations and License Agreements	Acquisitions, Research Collaborations and Licensing 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 April 2023, Merck announced an agreement to acquire Prometheus Biosciences, Inc. (Prometheus), a clinical-stage biotechnology company pioneering a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic products for the treatment of immune-mediated diseases. Prometheus’ lead candidate, PRA023, is a humanized monoclonal antibody directed to tumor necrosis factor-like ligand 1A, a target associated with both intestinal inflammation and fibrosis. Prometheus is developing PRA023 for the treatment of immune-mediated diseases including ulcerative colitis, Crohn’s disease, and other autoimmune conditions. Under the terms of the acquisition agreement, Merck, through a subsidiary, will acquire all of the outstanding shares of Prometheus for $200 per share in cash for a total equity value of approximately $10.8 billion. The acquisition is subject to Prometheus shareholder approval. The closing of the proposed transaction will be subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The transaction is expected to close in the third quarter of 2023. If the proposed transaction closes, the Company anticipates it will be accounted for as an asset acquisition, which would result in a charge of approximately $10.3 billion in Research and development expenses. In February 2023, Merck and Kelun-Biotech (a holding subsidiary of Sichuan Kelun Pharmaceutical Co., Ltd.) closed a license and collaboration agreement expanding their relationship in which Merck gained exclusive rights for the research, development, manufacture and commercialization of up to seven investigational preclinical antibody drug conjugates (ADCs) for the treatment of cancer. Kelun-Biotech retained the right to research, develop, manufacture and commercialize certain licensed and option ADCs for Chinese mainland, Hong Kong and Macau. Merck made an upfront payment of $175 million, which was recorded in Research and development expenses in the first quarter of 2023. In addition, Kelun-Biotech is eligible to receive future contingent development-related payments aggregating up to $1.0 billion, $2.8 billion in regulatory milestones, and $5.5 billion in sales-based milestones if Kelun-Biotech does not retain Chinese mainland, Hong Kong and Macau rights for the option ADCs and all candidates achieve regulatory approval. In addition, Kelun-Biotech is eligible to receive tiered royalties ranging from a mid-single-digit rate to a low-double-digit rate on future net sales for any commercialized ADC product. Also, in connection with the agreement, Merck invested $100 million in Kelun-Biotech’s Series B preferred shares in January 2023. In January 2023, Merck acquired Imago BioSciences, Inc. (Imago), a clinical stage biopharmaceutical company developing new medicines for the treatment of myeloproliferative neoplasms and other bone marrow diseases, for $1.35 billion (including payments to settle share-based equity awards) and also incurred approximately $60 million of transaction costs. Imago’s lead candidate bomedemstat, MK-3543 (formerly IMG-7289), is an investigational orally available lysine-specific demethylase 1 inhibitor currently being evaluated in multiple Phase 2 clinical trials for the treatment of essential thrombocythemia, myelofibrosis, and polycythemia vera, in addition to other indications. The transaction was accounted for as an acquisition of an asset since bomedemstat represented substantially all of the fair value of the gross assets acquired (excluding cash and deferred income taxes). Merck recorded net assets of $219 million, as well as Research and development expenses of $1.2 billion in the first quarter of 2023 related to the transaction. There are no future contingent payments associated with the acquisition.

Collaborative Arrangements

Collaborative Arrangements	3 Months Ended
	Mar. 31, 2023
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 2017, Merck and AstraZeneca PLC (AstraZeneca) entered into a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca’s Lynparza (olaparib) for multiple cancer types. Independently, Merck and AstraZeneca will develop and commercialize Lynparza in combinations with their respective PD-1 and PD-L1 medicines, Keytruda (pembrolizumab) and Imfinzi. The companies are also jointly developing and commercializing AstraZeneca’s Koselugo (selumetinib) for multiple indications. Under the terms of the agreement, AstraZeneca and Merck will share the development and commercialization costs for Lynparza and Koselugo monotherapy and non-PD-L1/PD-1 combination therapy opportunities. Profits from Lynparza and Koselugo product sales generated through monotherapies or combination therapies are shared equally. AstraZeneca is the principal on Lynparza and Koselugo sales transactions. Merck records its share of Lynparza and Koselugo product sales, net of cost of sales and commercialization costs, as alliance revenue and its share of development costs associated with the collaboration as part of Research and development expenses. 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 and also made payments over a multi-year period for certain license options. In addition, the agreement provides for contingent payments from Merck to AstraZeneca related to the successful achievement of sales-based and regulatory milestones. In the first quarter of 2022, Merck determined it was probable that sales of Lynparza in the future would trigger a $600 million sales-based milestone payment from Merck to AstraZeneca. Accordingly, Merck recorded a $600 million liability (which remained accrued at March 31, 2023) and a corresponding increase to the intangible asset related to Lynparza. Merck also recognized $250 million of cumulative amortization catch-up expense related to the recognition of this milestone in the first quarter of 2022. Also in the first quarter of 2022, Merck made a sales-based milestone payment to AstraZeneca (which had been previously accrued for) of $400 million. Potential future sales-based milestone payments of $2.1 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. In the first quarter of 2023, Merck made a regulatory milestone payment to AstraZeneca (which had been previously accrued for) of $105 million. In 2022, Lynparza received regulatory approvals triggering capitalized milestone payments of $250 million from Merck to AstraZeneca. Potential future regulatory milestone payments of $1.1 billion remain under the agreement. The intangible asset balance related to Lynparza (which includes capitalized sales-based and regulatory milestone payments) was $1.5 billion at March 31, 2023 and is included in Other Intangibles, Net . The amount is being amortized over its estimated useful life through 2028 as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Lynparza $ 275 $ 266 Alliance revenue - Koselugo 23 9 Total alliance revenue $ 298 $ 275 Cost of sales (1) 70 299 Selling, general and administrative 47 44 Research and development 21 26 ($ in millions) March 31, 2023 December 31, 2022 Receivables from AstraZeneca included in Other current assets $ 303 $ 303 Payables to AstraZeneca included in Accrued and other current liabilities (2) 21 123 Payables to AstraZeneca included in Other Noncurrent Liabilities (2) 600 600 (1) Represents amortization of capitalized milestone payments. Amount in the first quarter of 2022 includes $250 million of cumulative amortization catch-up expense as noted above. (2) Includes accrued milestone payments. Eisai In 2018, Merck and Eisai Co., Ltd. (Eisai) announced a strategic collaboration for the worldwide co-development and co-commercialization of Lenvima (lenvatinib), 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 Keytruda . Eisai records Lenvima product sales globally (Eisai is the principal on Lenvima sales transactions) and Merck and Eisai share applicable 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 are shared by the two companies in accordance with the collaboration agreement and reflected in Research and development expenses. Certain expenses incurred solely by Merck or Eisai are not shareable under the collaboration agreement, including costs incurred in excess of agreed upon caps and costs related to certain combination studies of Keytruda and Lenvima. Under the agreement, Merck made an upfront payment to Eisai and also made payments over a multi-year period for certain option rights. In addition, the agreement provides for contingent payments from Merck to Eisai related to the successful achievement of sales-based and regulatory milestones. In the first quarter of 2023, Merck determined it was probable that sales of Lenvima in the future would trigger a $125 million sales-based milestone payment from Merck to Eisai. Accordingly, Merck recorded a $125 million liability and a corresponding increase to the intangible asset related to Lenvima. Merck also recognized $72 million of cumulative amortization catch-up expense related to the recognition of this milestone. In 2022, Merck made sales-based milestone payments to Eisai (which had been previously accrued for) aggregating $600 million (of which $300 million was paid in the first quarter of 2022). Potential future sales-based milestone payments of $2.4 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. In 2022, Lenvima received regulatory approvals triggering capitalized milestone payments of $50 million from Merck to Eisai (of which $25 million was paid in the first quarter of 2022). There are no regulatory milestone payments remaining under the agreement. The intangible asset balance related to Lenvima (which includes capitalized sales-based and regulatory milestone payments) was $812 million at March 31, 2023 and is included in Other Intangibles, Net . The amount is being amortized over its estimated useful life through 2026 as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Lenvima $ 232 $ 227 Cost of sales (1) 126 53 Selling, general and administrative 51 31 Research and development 39 57 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Eisai included in Other current assets $ 244 $ 214 Payables to Eisai included in Accrued and other current liabilities (2) 125 — (1) Represents amortization of capitalized milestone payments. Amount in the first quarter of 2023 includes $72 million of cumulative amortization catch-up expense as noted above. (2) Represents an accrued milestone payment. 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 (riociguat). The two companies have implemented a joint development and commercialization strategy. The collaboration also includes development of Bayer’s Verquvo (vericiguat), which was approved in the U.S., the European Union (EU) and Japan in 2021, and has since been approved in several other markets. Under the agreement, Bayer commercializes Adempas in the Americas, while Merck commercializes in the rest of the world. For Verquvo, Merck commercializes in the U.S. and Bayer commercializes in the rest of the world. Both companies share in development costs and profits on sales. Merck records sales of Adempas and Verquvo in its marketing territories, as well as alliance revenue. Alliance revenue represents Merck’s share of profits from sales of Adempas and Verquvo in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs. Cost of sales includes Bayer’s share of profits from sales in Merck’s marketing territories. In addition, the agreement provided for contingent payments from Merck to Bayer related to the successful achievement of sales-based milestones. In the first quarter of 2022, Merck made the final $400 million sales-based milestone payment under this collaboration to Bayer. The intangible asset balances related to Adempas (which includes the acquired intangible asset balance, as well as capitalized sales-based milestone payments attributed to Adempas) and Verquvo (which reflects the portion of the final sales-based milestone payment that was attributed to Verquvo) were $613 million and $56 million, respectively, at March 31, 2023 and are included in Other Intangibles, Net . The assets are being amortized over their estimated useful lives (through 2027 for Adempas and through 2031 for Verquvo) as supported by projected future cash flows, subject to impairment testing. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Adempas/Verquvo $ 99 $ 72 Net sales of Adempas recorded by Merck 59 61 Net sales of Verquvo recorded by Merck 7 3 Total sales $ 165 $ 136 Cost of sales (1) 57 50 Selling, general and administrative 33 23 Research and development 25 17 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Bayer included in Other current assets $ 142 $ 143 Payables to Bayer included in Accrued and other current liabilities 68 80 (1) Includes amortization of intangible assets. Ridgeback Biotherapeutics LP In 2020, Merck and Ridgeback Biotherapeutics LP (Ridgeback), a closely held biotechnology company, entered into a collaboration agreement to develop Lagevrio (molnupiravir), an investigational orally available antiviral candidate for the treatment of patients with COVID-19. Merck gained exclusive worldwide rights to develop and commercialize Lagevrio and related molecules. Following initial authorizations in certain markets in the fourth quarter of 2021, Lagevrio has since received multiple additional authorizations worldwide. Under the terms of the agreement, Ridgeback received an upfront payment and is eligible to receive future contingent payments dependent upon the achievement of certain developmental and regulatory approval milestones. The agreement also provides for Merck to reimburse Ridgeback for a portion of certain third-party contingent milestone payments and royalties on net sales, which is part of the profit-sharing calculation. Merck is the principal on sales transactions, recognizing sales and related costs, with profit-sharing amounts recorded within Cost of sales . Profits from the collaboration are split equally between the partners. Reimbursements from Ridgeback for its share of research and development costs (deducted from Ridgeback’s share of profits) are reflected as decreases to Research and development expenses. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Net sales of Lagevrio recorded by Merck $ 392 $ 3,247 Cost of sales (1)(2) 221 1,726 Selling, general and administrative (2) 27 35 Research and development (2) 16 25 ($ in millions) March 31, 2023 December 31, 2022 Payables to Ridgeback included in Accrued and other current liabilities (3) $ 191 $ 348 (1) Includes royalty expense and amortization of capitalized milestone payments. (2) Expenses include an allocation for overhead charges. (3) Includes accrued royalties. Amount at December 31, 2022 also includes an accrued milestone payment . Bristol Myers Squibb Reblozyl (luspatercept-aamt) is a first-in-class erythroid maturation recombinant fusion protein that is being commercialized through a global collaboration with Bristol Myers Squibb (BMS). Reblozyl is approved in the U.S., Europe and certain other markets for the treatment of anemia in certain rare blood disorders and is also being evaluated for additional indications for hematology therapies. BMS is the principal on sales transactions for Reblozyl; however, Merck co-promotes Reblozyl (and will co-promote all future products approved under this collaboration) in North America, which is reimbursed by BMS. Merck receives a 20% sales royalty from BMS which could increase to a maximum of 24% based on sales levels. This royalty will be reduced by 50% upon the earlier of patent expiry or generic entry on an indication-by-indication basis in each market. Additionally, Merck is eligible to receive future contingent sales-based milestone payments of up to $80 million. Merck recorded alliance revenue related to this collaboration within Sales of $43 million in the first quarter of 2023 (consisting of royalties) compared with $52 million in the first quarter of 2022 (consisting of royalties of $32 million and the receipt of a regulatory approval milestone payment of $20 million).

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In 2019, Merck approved a global restructuring program (Restructuring Program) as part of a worldwide initiative focused on optimizing the Company’s manufacturing and supply network, as well as reducing its global real estate footprint. The actions contemplated under the 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 $3.7 billion. The Company estimates that approximately 70% of the cumulative pretax costs will result in cash outlays, primarily related to employee separation expense and facility shut-down costs. Approximately 30% of the cumulative pretax costs will be non-cash, relating primarily to the accelerated depreciation of facilities to be closed or divested. The Company recorded total pretax costs of $97 million and $127 million in the first quarter of 2023 and 2022, respectively, related to restructuring program activities. Since inception of the Restructuring Program through March 31, 2023, Merck has recorded total pretax accumulated costs of approximately $3.4 billion. For the full year of 2023, the Company expects to record charges of approximately $400 million related to the Restructuring Program. For segment reporting, restructuring charges are unallocated expenses. The following tables summarize the charges related to restructuring program activities by type of cost: Three Months Ended March 31, 2023 ($ in millions) Separation Accelerated Other Total Cost of sales $ — $ 21 $ 8 $ 29 Selling, general and administrative — — 1 1 Restructuring costs 41 — 26 67 $ 41 $ 21 $ 35 $ 97 Three Months Ended March 31, 2022 ($ in millions) Separation Accelerated Other Total Cost of sales $ — $ 18 $ 28 $ 46 Selling, general and administrative — 4 17 21 Research and development — 7 — 7 Restructuring costs 26 — 27 53 $ 26 $ 29 $ 72 $ 127 Separation costs are associated with actual headcount reductions, as well as involuntary 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 program. 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 2023 and 2022 includes asset abandonment, facility shut-down and other related costs, as well as pretax gains and losses resulting from the sales of facilities and related assets. Additionally, other activity includes certain employee-related costs associated with pension and other postretirement benefit plans (see Note 10) and share-based compensation. The following table summarizes the charges and spending relating to restructuring program activities for the three months ended March 31, 2023: ($ in millions) Separation Accelerated Other Total Restructuring reserves January 1, 2023 $ 479 $ — $ 34 $ 513 Expenses 41 21 35 97 (Payments) receipts, net (47) — (27) (74) Non-cash activity — (21) (9) (30) Restructuring reserves March 31, 2023 (1) $ 473 $ — $ 33 $ 506

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2023
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 of 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 changes 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, Japanese yen and Chinese renminbi. 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 are recorded in Accumulated Other Comprehensive Loss ( AOCL) 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. 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 Company also uses a balance sheet risk management program to mitigate the exposure of such assets and liabilities from the effects of volatility in foreign exchange. Merck principally utilizes forward exchange contracts to offset the effects of exchange in developed country currencies, primarily the euro, Japanese yen, British pound, Canadian dollar, Australian dollar and Swiss franc. For exposures in developing country currencies, including the Chinese renminbi, the Company will enter into forward contracts to 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 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 six months. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows. The Company also uses forward exchange contracts to hedge a portion of 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 unrealized gains or losses on these contracts are recorded in foreign currency translation adjustment within OCI and remain in AOCL 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 components). Changes in fair value of the excluded components are recognized in OCI . The Company recognizes in earnings the initial value of the excluded components 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 March 31, Three Months Ended March 31, ($ in millions) 2023 2022 2023 2022 Net Investment Hedging Relationships Foreign exchange contracts $ 1 $ (16) $ 1 $ (1) Euro-denominated notes 52 (53) — — (1) No amounts were reclassified from AOCL 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 at risk. In March 2023, the Company entered into five forward starting swaps and in April 2023 entered into two additional forward starting swaps, each with a notional amount of $100 million. Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments: March 31, 2023 December 31, 2022 Fair Value of Derivative U.S. Dollar Fair Value of Derivative U.S. Dollar ($ in millions) Asset Liability Asset Liability Derivatives Designated as Hedging Instruments Balance Sheet Caption Interest rate swap contracts Other Assets $ 1 $ — $ 300 $ — $ — $ — Interest rate swap contracts Other Noncurrent Liabilities — 1 200 — — — Foreign exchange contracts Other current assets 104 — 4,253 220 — 4,824 Foreign exchange contracts Other Assets 32 — 1,756 27 — 1,609 Foreign exchange contracts Accrued and other current liabilities — 116 3,444 — 101 2,691 Foreign exchange contracts Other Noncurrent Liabilities — 2 120 — 1 91 $ 137 $ 119 $ 10,073 $ 247 $ 102 $ 9,215 Derivatives Not Designated as Hedging Instruments Balance Sheet Caption Foreign exchange contracts Other current assets $ 121 $ — $ 9,507 $ 186 $ — $ 8,540 Foreign exchange contracts Other Assets 1 — 65 — — — Foreign exchange contracts Accrued and other current liabilities — 164 10,592 — 307 10,926 Foreign exchange contracts Other Noncurrent Liabilities — 1 124 — — — $ 122 $ 165 $ 20,288 $ 186 $ 307 $ 19,466 $ 259 $ 284 $ 30,361 $ 433 $ 409 $ 28,681 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: March 31, 2023 December 31, 2022 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the condensed consolidated balance sheet $ 259 $ 284 $ 433 $ 409 Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet (148) (148) (220) (220) Cash collateral received/posted (13) — (66) (19) Net amounts $ 98 $ 136 $ 147 $ 170 The table below provides information regarding the location and amount of pretax gains and losses of derivatives designated in fair value or cash flow hedging relationships: Three Months Ended March 31, ($ in millions) 2023 2022 2023 2022 2023 2022 Financial Statement Caption in which Effects of Fair Value or Cash Flow Hedges are Recorded Sales Other (income) expense, net (1) Other comprehensive income (loss) $ 14,487 $ 15,901 $ 89 $ 708 $ (115) $ 60 (Gain) loss on fair value hedging relationships: Interest rate swap contracts Hedged items — — — (10) — — Derivatives designated as hedging instruments — — — 4 — — Impact of cash flow hedging relationships: Foreign exchange contracts Amount of (loss) gain recognized in OCI on derivatives — — — — (66) 148 Increase in Sales as a result of AOCL reclassifications 101 67 — — (101) (67) Interest rate contracts Amount of gain recognized in Other (income) expense, net on derivatives — — (1) (1) — — Amount of loss recognized in OCI on derivatives — — — — (1) (1) (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 March 31, ($ in millions) 2023 2022 Derivatives Not Designated as Hedging Instruments Income Statement Caption Foreign exchange contracts (1) Other (income) expense, net $ 13 $ 28 Foreign exchange contracts (2) Sales 2 (2) (1) These derivative contracts primarily 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 March 31, 2023, the Company estimates $71 million of pretax net unrealized losses on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCL to Sales . The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity. Investments in Debt and Equity Securities Information on investments in debt and equity securities is as follows: March 31, 2023 December 31, 2022 Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair ($ in millions) Gains Losses Gains Losses Commercial paper $ 663 $ — $ — $ 663 $ 498 $ — $ — $ 498 U.S. government and agency securities 92 — — 92 68 — — 68 Corporate notes and bonds 4 — — 4 3 — — 3 Foreign government bonds 1 — — 1 — — — — Total debt securities $ 760 $ — $ — $ 760 $ 569 $ — $ — $ 569 Publicly traded equity securities (1) 1,585 1,284 Total debt and publicly traded equity securities $ 2,345 $ 1,853 (1) Unrealized net gains of $338 million were recorded in Other (income) expense, net in the first quarter of 2023 on equity securities still held at March 31, 2023. Unrealized net losses of $225 million were recorded in Other (income) expense, net in the first quarter of 2022 on equity securities still held at March 31, 2022. At March 31, 2023 and March 31, 2022, the Company also had $942 million and $643 million, respectively, of equity investments without readily determinable fair values included in Other Assets . The Company records unrealized gains on these equity investments based on favorable observable price changes from transactions involving similar investments of the same investee and records unrealized losses based on unfavorable observable price changes, which are included in Other (income) expense, net . During the first quarter of 2023 , the Company recorded unrealized gains of $1 million and unrealized losses of $21 million related to certain of these equity investments still held at March 31, 2023. During the first quarter of 2022 , the Company recorded unrealized gains of $14 million related to certain of these investments still held at March 31, 2022. Cumulative unrealized gains and cumulative unrealized losses based on observable price changes for investments in equity investments without readily determinable fair values still held at March 31, 2023 were $287 million and $40 million, respectively. At March 31, 2023 and March 31, 2022, the Company also had $725 million and $1.2 billion, respectively, recorded in Other Assets for equity securities held through ownership interests in investment funds. (Gains) losses recorded in Other (income) expense, net relating to these investment funds were $(132) million and $509 million for the first quarter of 2023 and 2022, respectively. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3 - Unobservable inputs that are supported by little or no market activity. Level 3 assets or liabilities are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as assets or liabilities for which the determination of fair value requires significant judgment or estimation. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ($ in millions) March 31, 2023 December 31, 2022 Assets Investments Commercial paper $ — $ 663 $ — $ 663 $ — $ 498 $ — $ 498 U.S. government and agency securities — 22 — 22 — — — — Foreign government bonds — 1 — 1 — — — — Publicly traded equity securities 1,284 — — 1,284 1,015 — — 1,015 1,284 686 — 1,970 1,015 498 — 1,513 Other assets (1) U.S. government and agency securities 70 — — 70 68 — — 68 Corporate notes and bonds 4 — — 4 3 — — 3 Publicly traded equity securities 301 — — 301 269 — — 269 375 — — 375 340 — — 340 Derivative assets (2) Purchased currency options — 139 — 139 — 215 — 215 Forward exchange contracts — 119 — 119 — 218 — 218 Interest rate swap contracts — 1 — 1 — — — — — 259 — 259 — 433 — 433 Total assets $ 1,659 $ 945 $ — $ 2,604 $ 1,355 $ 931 $ — $ 2,286 Liabilities Other liabilities Contingent consideration $ — $ — $ 353 $ 353 $ — $ — $ 456 $ 456 Derivative liabilities (2) Forward exchange contracts — 276 — 276 — 402 — 402 Written currency options — 7 — 7 — 7 — 7 Interest rate swap contracts — 1 — 1 — — — — — 284 — 284 — 409 — 409 Total liabilities $ — $ 284 $ 353 $ 637 $ — $ 409 $ 456 $ 865 (1) Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans. (2) The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant. As of March 31, 2023 and December 31, 2022, Cash and cash equivalents included $8.8 billion and $11.3 billion of cash equivalents, respectively (which would be considered Level 2 in the fair value hierarchy). Contingent Consideration Summarized information about the changes in the fair value of liabilities for contingent consideration associated with business combinations is as follows: ($ in millions) 2023 2022 Fair value January 1 $ 456 $ 777 Changes in estimated fair value (1) 14 (84) Payments (117) (119) Other — (2) Fair value March 31 (2) $ 353 $ 572 (1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net . Includes cumulative translation adjustments. (2) At March 31, 2023, $263 million of the liabilities relate to the termination of the Sanofi Pasteur MSD joint venture in 2016. As part of the termination, Merck recorded a liability for contingent future royalty payments of 11.5% on net sales of all Merck products that were previously sold by the joint venture through December 31, 2024. The fair value of this liability is determined utilizing the estimated amount and timing of projected cash flows using a risk-adjusted discount rate to present value the cash flows. Balance at March 31, 2023 includes $127 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 relate to the Sanofi Pasteur MSD liabilities described above. 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 March 31, 2023, was $28.2 billion compared with a carrying value of $30.7 billion and at December 31, 2022, was $26.7 billion compared with a carrying value of $30.7 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 U.S., Europe and China and are primarily due from drug wholesalers and retailers, hospitals and government agencies. 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 has accounts receivable factoring agreements with financial institutions in certain countries to sell accounts receivable. The Company factored $2.4 billion and $2.5 billion of accounts receivable as of March 31, 2023 and December 31, 2022, respectively, under these factoring arrangements, which reduced outstanding accounts receivable. The cash received from the financial institutions is reported within operating activities in the Condensed Consolidated Statement of Cash Flows. In certain of these factoring arrangements, for ease of administration, the Company will collect customer payments related to the factored receivables, which it then remits to the financial institutions. As of March 31, 2023 and December 31, 2022, the Company had collected $31 million and $67 million, respectively, on behalf of the financial institutions, which is reflected as restricted cash in Other current assets and the related obligation to remit the cash within Accrued and other current liabilities . The Company remitted the cash to the financial institutions in April 2023 and January 2023, respectively. The net cash flows related to these collections are reported as financing activities in the Condensed Consolidated Statement of Cash Flows. The cost of factoring such accounts receivable was de minimis . 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 collateral received by the Company from various counterparties was $13 million and $66 million at March 31, 2023 and December 31, 2022, respectively. The obligation to return such collateral is recorded in Accrued and other current liabilities

Inventories

Inventories	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of: ($ in millions) March 31, 2023 December 31, 2022 Finished goods $ 1,883 $ 1,841 Raw materials and work in process 7,348 7,063 Supplies 266 238 Total (approximates current cost) 9,497 9,142 Decrease to LIFO cost (350) (293) $ 9,147 $ 8,849 Recognized as: Inventories $ 5,863 $ 5,911 Other Assets 3,284 2,938 Amounts recognized as Other Assets are comprised almost entirely of raw materials and work in process inventories. At March 31, 2023 and December 31, 2022, these amounts included $2.7 billion and $2.4 billion, respectively, of inventories not expected to be sold within one year. In addition, these amounts included $590 million and $516 million at March 31, 2023 and December 31, 2022, respectively, of inventories produced in preparation for product launches.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
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 condition, 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. Product Liability Litigation Gardasil/Gardasil 9 Merck is a defendant in product liability lawsuits in the U.S. involving Gardasil (Human Papillomavirus Quadrivalent [Types 6, 11, 16 and 18] Vaccine, Recombinant) and Gardasil 9 (Human Papillomavirus 9-valent Vaccine, Recombinant). As of March 31, 2023, approximately 95 cases were filed and pending against Merck in either federal or state court. In these actions, plaintiffs allege, among other things, that they suffered various personal injuries after vaccination with Gardasil or Gardasil 9, with postural orthostatic tachycardia syndrome as a predominate alleged injury. In August 2022, the Judicial Panel on Multidistrict Litigation ordered that Gardasil/Gardasil 9 product liability cases pending in federal courts nationwide be transferred to Judge Robert J. Conrad in the Western District of North Carolina for coordinated pre-trial proceedings. There are fewer than 15 product liability cases pending outside the U.S., including one purported class action in Colombia. Governmental Proceedings As previously disclosed, from time to time, the Company’s subsidiaries in China 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 U.S. 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, Merck Sharp & Dohme, LLC. (MSD), Schering Corporation, Schering-Plough Corporation, and MSP Singapore Company LLC (collectively, the Merck Defendants) are defendants in a number of 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 were consolidated in a federal multidistrict litigation (the Zetia MDL) before Judge Rebecca Beach Smith in the Eastern District of Virginia. In November 2019, the direct purchaser plaintiffs and the indirect purchaser plaintiffs filed motions for class certification. In August 2020, the district court granted in part the direct purchasers’ motion for class certification and certified a class of 35 direct purchasers. In August 2021, the Fourth Circuit vacated the district court’s class certification order and remanded for further proceedings consistent with the court’s ruling. In September 2021, the direct purchaser plaintiffs filed a renewed motion for class certification. In April 2022, the district court denied the direct purchaser plaintiffs’ renewed motion for class certification. In August 2021, the district court granted certification of a class of indirect purchasers. In 2020 and 2021, United Healthcare Services, Inc., Humana Inc., Centene Corporation and others, and Kaiser Foundation Health Plan, Inc. (collectively, the Insurer Plaintiffs), each filed a lawsuit in a jurisdiction outside of the Eastern District of Virginia against the Merck Defendants and others, making similar allegations as those made in the Zetia MDL, as well as additional allegations about Vytorin. These cases have been transferred to the Eastern District of Virginia to proceed with the Zetia MDL and remain pending. In February 2022, the Insurer Plaintiffs filed amended complaints. In March 2022, the Merck Defendants, jointly with other defendants, moved to dismiss certain aspects of the Insurer Plaintiffs’ complaints, including any claims for Vytorin damages. That motion to dismiss the Vytorin-related claims is still pending. In April 2022, the direct purchaser plaintiffs moved for an order setting a deadline for direct purchasers of Zetia not currently parties to the case to file cases against defendants in order for those cases to be coordinated for trial with the existing direct purchaser plaintiffs and other MDL plaintiff groups. The court granted that motion, setting a deadline of June 30, 2022 for unnamed direct purchasers to file claims. On June 30, 2022, 23 new entities, many related, brought new complaints against defendants or otherwise sought to intervene. On February 10, 2023, the district court denied the Merck Defendants’ and Glenmark Defendants’ motions for summary judgment. In April 2023, the Merck Defendants reached settlements with the direct purchaser and retailer plaintiffs and a proposed settlement, subject to court approval, with the indirect purchaser class. Under these agreements, Merck will pay $572.5 million to resolve the direct purchaser, retailer, and indirect purchaser plaintiffs’ claims, which was recorded as an expense in the Company’s first quarter 2023 financial results. RotaTeq Antitrust Litigation On March 3, 2023, the Mayor and City Council of Baltimore filed a putative class action against MSD in the Eastern District of Pennsylvania on behalf of all third-party payors in 35 states that indirectly purchased, paid, and/or provided reimbursement for some or all of the purchase price of RotaTeq (Rotavirus Vaccine, Live Oral, Pentavalent), other than for resale, from March 3, 2019 to the present. Plaintiff alleges that MSD violated federal and state antitrust laws and state consumer protection laws. Plaintiff alleges that MSD has implemented an anticompetitive vaccine bundling scheme whereby MSD leverages its alleged monopoly power in certain pediatric vaccine markets to maintain its alleged monopoly power in the U.S. market for rotavirus vaccines in order to charge supracompetitive prices for RotaTeq . Plaintiff seeks permanent injunctive relief and unspecified monetary damages on purchases of RotaTeq , trebled, and fees and costs. Bravecto Litigation As previously disclosed, in January 2020, the Company was served with a complaint in the U.S. District Court for the District of New Jersey. Following motion practice, the plaintiffs filed a second amended complaint on July 1, 2021, seeking to certify a nationwide class action of purchasers or users of Bravecto (fluralaner) products in the U.S. or its territories between May 1, 2014 and July 1, 2021. Plaintiffs contend Bravecto causes neurological events in dogs and cats and alleges violations of the New Jersey Consumer Fraud Act, Breach of Warranty, Product Liability, and related theories. The Company moved to dismiss or, alternatively, to strike the class allegations from the second amended complaint, and that motion is pending. A similar case was filed in Quebec, Canada in May 2019. The Superior Court certified a class of dog owners in Quebec who gave Bravecto Chew to their dogs between February 16, 2017 and November 2, 2018 whose dogs experienced one of the conditions in the post-marketing adverse reactions section of the labeling approved on November 2, 2018. The Company and plaintiffs each appealed the class certification decision. The Court of Appeal of Quebec heard the appeal in February 2022 and issued a decision in April 2022 allowing both parties’ appeals in part. The Court of Appeal amended the class period to start on July 2, 2014, allowed a second plaintiff to serve as a class representative, and modified the list of conditions in the class definition by adding “death” and removing “lack of efficacy.” The Court of Appeal also added to the list of questions to be considered by the trial court the questions of whether the Consumer Protection Act of Quebec applies to the sale of a veterinary product and, if so, whether it was breached. The Company sought leave to appeal to the Supreme Court of Canada, which was denied. The case is proceeding in the Superior Court. Patent Litigation From time to time, generic manufacturers of pharmaceutical products file abbreviated New Drug Applications (NDAs) with the FDA seeking to market generic forms of the Company’s products prior to the expiration of relevant patents owned by the Company. To protect its patent rights, the Company may file patent infringement lawsuits against such generic companies. 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 accounted for as business combinations, potentially significant intangible asset impairment charges. Bridion — As previously disclosed, between January and November 2020, the Company received multiple Paragraph IV Certification Letters under the Hatch-Waxman Act notifying the Company that generic drug companies have filed applications to the FDA seeking pre-patent expiry approval to sell generic versions of Bridion (sugammadex) Injection. In March, April and December 2020, the Company filed patent infringement lawsuits in the U.S. District Courts for the District of New Jersey and the Northern District of West Virginia against those generic companies. All actions in the District of New Jersey have been consolidated. These lawsuits, which assert one or more patents covering sugammadex and methods of using sugammadex, automatically stay FDA approval of the generic applications until June 2023 or until adverse court decisions, if any, whichever may occur earlier. The West Virginia case was jointly dismissed with prejudice on August 8, 2022 in favor of proceeding in New Jersey. The remaining defendants in the New Jersey action have stipulated to infringement of the asserted claims and have stated they are withdrawing all remaining claims and defenses other than a defense seeking to shorten the patent term extension of the sugammadex patent to December 2022. The U.S. District Court for the District of New Jersey held a one-day trial on December 19, 2022 on this remaining patent term extension calculation defense. The court ordered post-trial briefing on this defense and held closing arguments on February 3, 2023. The Company has settled with five generic companies providing that these generic companies can bring their generic versions of Bridion to the market in January 2026 (which may be delayed by any applicable pediatric exclusivity) or earlier under certain circumstances. The Company has agreed to stay the lawsuit filed against two generic companies, which in exchange agreed to be bound by a judgment on the merits of the consolidated action in the District of New Jersey. One of the generic companies in the consolidated action requested dismissal of the action against it and the Company did not oppose this request, which was subsequently granted by the court. The Company does not expect this company to bring its generic version of Bridion to the market before January 2026 or later, depending on any applicable pediatric exclusivity, unless the Company receives an adverse court decision. Januvia, Janumet, Janumet XR — As previously disclosed, the FDA granted pediatric exclusivity with respect to Januvia (sitagliptin), Janumet (sitagliptin/metformin HCI), and Janumet XR (sitagliptin and metformin HCl extended-release), which provides a further six months of exclusivity in the U.S. beyond the expiration of all patents listed in the FDA’s Orange Book. Adding this exclusivity to the term of the key patent protection extended exclusivity on these products to January 2023. However, Januvia , Janumet , and Janumet XR contain sitagliptin phosphate monohydrate and the Company has another patent covering certain phosphate salt and polymorphic forms of sitagliptin that expires in May 2027, including pediatric exclusivity (2027 salt/polymorph patent). In 2019, 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 the 2027 salt/polymorph patent. 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, but prior to the expiration of the 2027 salt/polymorph patent, and a later granted patent owned by the Company covering the Janumet formulation where its term plus the pediatric exclusivity ends in 2029. The Company also filed a patent infringement lawsuit against Mylan in the Northern District of West Virginia. The Judicial Panel on Multidistrict Litigation entered an order transferring 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. Prior to the beginning of the scheduled October 2021 trial in the U.S. District Court for the District of Delaware on invalidity issues, the Company settled with all defendants scheduled to participate in that trial. In the Company’s case against Mylan, a bench trial was held in December 2021 in the U.S. District Court for the Northern District of West Virginia, and the closing arguments were held in April 2022. In September 2022, the District Court for the Northern District of West Virginia issued a decision in the Company’s favor, upholding all asserted patent claims. Mylan (now Viatris) appealed to the U.S. Court of Appeals for the Federal Circuit. The parties have now settled the matter, and Mylan has agreed to voluntarily dismiss the appeal following entry of an amended final judgment by the district court. Additionally, in 2019, Mylan filed a petition for inter partes review (IPR) at the U.S. Patent and Trademark Office (USPTO) seeking invalidity of some, but not all, of the claims of the 2027 salt/polymorph patent. The USPTO instituted IPR proceedings in May 2020, finding a reasonable likelihood that the challenged claims are not valid. A trial was held in February 2021 and a final decision was rendered in May 2021, holding that all of the challenged claims were not invalid. Mylan appealed the USPTO’s decision to the U.S. Court of Appeals for the Federal Circuit, and a hearing was held in August 2022. In September 2022, the U.S. Court of Appeals for the Federal Circuit ruled in the Company’s favor, upholding the USPTO’s decision. Mylan submitted a combined petition for panel rehearing and rehearing en banc, for which the Company was invited by the court to provide a response. On February 3, 2023, the court issued a per curiam decision denying both rehearing requests. In total, the Company has settled with 25 generic companies providing that these generic companies can bring their generic versions of Januvia and Janumet to the market in May 2026 or earlier under certain circumstances, and their generic versions of Janumet XR to the market in July 2026 or earlier under certain circumstances. In March 2021, the Company filed a patent infringement lawsuit in the U.S. District Court for the District of Delaware against Zydus Worldwide DMCC, Zydus Pharmaceuticals (USA) Inc., and Cadila Healthcare Ltd. (collectively, Zydus). In that lawsuit, the Company alleged infringement of the 2027 salt/polymorph patent based on the filing of Zydus’s NDA seeking approval of its sitagliptin tablets. In December 2022, the parties reached settlement that included dismissal of the case without prejudice enabling Zydus to seek final approval of a non-automatically substitutable product containing a different form of sitagliptin than that used in Januvia . In January 2023, the Company received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying the Company that Zydus has filed a NDA seeking approval of sitagliptin/metformin HCl tablets and certifying that no valid or enforceable claim of any of the patents listed in FDA’s Orange Book for Janumet will be infringed by the proposed Zydus product. In March 2023, the parties reached settlement enabling Zydus to seek final approval of a non-automatically substitutable product containing a different form of sitagliptin than that used in Janumet. As a result of these favorable court rulings and settlement agreements related to the later expiring patent directed to the specific sitagliptin salt form of the products, the Company expects that Januvia and Janumet will not lose market exclusivity in the U.S. until May 2026 and Janumet XR will not lose market exclusivity in the U.S. until July 2026 , although another non-automatically substitutable form of sitagliptin is likely to be available prior to 2026 . Supplementary Protection Certificates (SPCs) for Janumet expired between April 7 and 10, 2023, for the majority of European countries. Prior to expiration, generic companies sought revocation of the Janumet SPCs in a number of European countries. In February 2022, a Finnish court referred certain questions to the Court of Justice of the European Union (CJEU) that could determine the validity of the Janumet SPCs in Europe, for which an oral hearing was held on March 8, 2023, and an Advocate General Opinion is expected on July 13, 2023. If the CJEU renders a decision that negatively impacts the validity of the Janumet SPCs throughout Europe, generic companies that were prevented from launching products during the SPC period in certain European countries may have an action for damages. Those countries include Belgium, Czech Republic, Ireland, Finland, France, Slovakia and Switzerland. If the Janumet SPCs are ultimately upheld, the Company has reserved its rights related to the pursuit of damages for those countries where a generic launched prior to expiry of the Janumet SPC. Keytruda — The Company filed a complaint against The Johns Hopkins University (JHU) on November 29, 2022, in the District Court of Maryland. This action concerns patents emerging from a joint research collaboration between Merck and JHU regarding the use of pembrolizumab, which Merck sells under the trade name Keytruda . Merck and JHU partnered to design and conduct a clinical study administering Keytruda to cancer patients having tumors that had the genetic biomarker known as microsatellite instability-high (MSI-H). After the conclusion of the study, JHU secured U.S. patents citing the joint research study. Merck alleges that JHU has breached the collaboration agreement by filing and obtaining these patents without informing or involving Merck and then licensing the patents to others. Merck therefore brought this action for breach of contract; declaratory judgment of noninfringement; and promissory estoppel. JHU answered the complaint on April 13, 2023, denying Merck’s claims, and counterclaiming for willful infringement of five issued U.S. patents, including a demand for damages. Lynparza — In December 2022, AstraZeneca Pharmaceuticals LP received a Paragraph IV Certification Letter under the Hatch-Waxman Act notifying AstraZeneca that Natco Pharma Limited (Natco) has filed an application to the FDA seeking pre-patent expiry approval to sell generic versions of Lynparza (olaparib) tablet. In February 2023, AstraZeneca and the Company filed a patent infringement lawsuit in the U.S. District Court for the District of New Jersey against Natco. This lawsuit, which asserts one or more patents covering olaparib, automatically stays FDA approval of the generic application until June 2025 or until an adverse court decision, if any, whichever may occur earlier. 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 condition, 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 March 31, 2023 and December 31, 2022 of approximately $225 million and $230 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	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Equity	Equity Three Months Ended March 31, Common Stock Other Retained Accumulated Treasury Stock Non- Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at January 1, 2022 3,577 $ 1,788 $ 44,238 $ 53,696 $ (4,429) 1,049 $ (57,109) $ 73 $ 38,257 Net income attributable to Merck & Co., Inc. — — — 4,310 — — — — 4,310 Other comprehensive income, net of taxes — — — — 60 — — — 60 Cash dividends declared on common stock ($0.69 per share) — — — (1,754) — — — — (1,754) Share-based compensation plans and other — — 37 — — — 46 — 83 Net loss attributable to noncontrolling interests — — — — — — — (3) (3) Balance at March 31, 2022 3,577 $ 1,788 $ 44,275 $ 56,252 $ (4,369) 1,049 $ (57,063) $ 70 $ 40,953 Balance at January 1, 2023 3,577 $ 1,788 $ 44,379 $ 61,081 $ (4,768) 1,039 $ (56,489) $ 67 $ 46,058 Net income attributable to Merck & Co., Inc. — — — 2,821 — — — — 2,821 Other comprehensive loss, net of taxes — — — — (115) — — — (115) Cash dividends declared on common stock ($0.73 per share) — — — (1,863) — — — — (1,863) Treasury stock shares purchased — — — — — 1 (149) — (149) Share-based compensation plans and other — — 88 — — — 61 — 149 Net income attributable to noncontrolling interests — — — — — — — 4 4 Balance at March 31, 2023 3,577 $ 1,788 $ 44,467 $ 62,039 $ (4,883) 1,040 $ (56,577) $ 71 $ 46,905

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans	3 Months Ended
	Mar. 31, 2023
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 U.S. and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components: Three Months Ended 2023 2022 ($ in millions) U.S. International U.S. International Service cost $ 76 $ 49 $ 99 $ 75 Interest cost 133 74 103 38 Expected return on plan assets (187) (128) (196) (101) Amortization of unrecognized prior service credit — (3) (8) (4) Net (gain) loss amortization — (1) 56 25 Curtailments 2 — 3 — Settlements 21 — 1 — $ 45 $ (9) $ 58 $ 33 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 ($ in millions) 2023 2022 Service cost $ 8 $ 12 Interest cost 16 11 Expected return on plan assets (16) (21) Amortization of unrecognized prior service credit (12) (14) Net gain amortization (11) (11) $ (15) $ (23) In connection with restructuring actions (see Note 5), termination charges were recorded on pension plans related to expanded eligibility for certain employees e x iting Merck. Also, in connection with these restructuring activities, curtailments were recorded on certain pension plans. In addition, lump sum payments to U.S. pension plan participants triggered a partial settlement resulting in a charge of $21 million in the first quarter of 2023. This partial settlement triggered a remeasurement of some of the Company’s U.S. pension plans. The remeasurement, which was calculated using discount rates and asset values as of March 31, 2023, resulted in a net increase of $44 million to net pension liabilities and also resulted in a related adjustment to AOCL . The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 11), with the exception of certain amounts for termination benefits and curtailments which are recorded in Restructuring costs if the event giving rise to the termination benefits or curtailment is related to restructuring actions.

Other (Income) Expense, Net

Other (Income) Expense, Net	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other (Income) Expense, Net	Other (Income) Expense, Net Other (income) expense, net, consisted of: Three Months Ended ($ in millions) 2023 2022 Interest income $ (112) $ (7) Interest expense 242 243 Exchange losses 61 39 (Income) loss from investments in equity securities, net (1) (450) 708 Net periodic defined benefit plan (credit) cost other than service cost (115) (121) Other, net 463 (154) $ 89 $ 708 (1) Includes net realized and unrealized gains and losses from investments in equity securities either owned directly or through ownership interests in investment funds. Unrealized gains and losses from investments that are directly owned are determined at the end of the reporting period, while gains and losses from ownership interests in investment funds are accounted for on a one quarter lag. Other, net (as reflected in the table above) in the first quarter of 2023 includes a $572.5 million charge related to settlements with certain plaintiffs in the Zetia antitrust litigation (see Note 8). Interest paid for the three months ended March 31, 2023 and 2022 was $208 million and $211 million, respectively.

Taxes on Income

Taxes on Income	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Taxes on Income	Taxes on IncomeThe effective income tax rates were 22.6% and 11.4% for the first quarter of 2023 and 2022, respectively. The effective income tax rate for the first quarter of 2023 reflects the unfavorable discrete impact of a charge for the acquisition of Imago for which no tax benefit was recognized, as well as higher foreign taxes, the impact of the R&D capitalization provision of the Tax Cuts and Jobs Act of 2017 on the Company’s U.S. global intangible low-taxed income inclusion, and net unrealized gains from investments in equity securities, which were taxed at the U.S. tax rate, partially offset by higher foreign tax credits. The effective income tax rate in the first quarter of 2022 includes the favorable impact of net unrealized losses from investments in equity securities, which were taxed at the U.S. tax rate.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The calculations of earnings per share are as follows: Three Months Ended ($ and shares in millions except per share amounts) 2023 2022 Net Income Attributable to Merck & Co., Inc. $ 2,821 $ 4,310 Average common shares outstanding 2,538 2,528 Common shares issuable (1) 13 9 Average common shares outstanding assuming dilution 2,551 2,537 Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders $ 1.11 $ 1.70 Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders $ 1.11 $ 1.70 (1) Issuable primarily under share-based compensation plans.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Changes in each component of other comprehensive income (loss) are as follows: Three Months Ended March 31, ($ in millions) Derivatives Employee Foreign Currency Accumulated Other Balance January 1, 2022, net of taxes $ 144 $ (2,743) $ (1,830) $ (4,429) Other comprehensive income (loss) before reclassification adjustments, pretax 148 1 (18) 131 Tax (31) (2) (17) (50) Other comprehensive income (loss) before reclassification adjustments, net of taxes 117 (1) (35) 81 Reclassification adjustments, pretax (68) (1) 45 (2) — (23) Tax 14 (12) — 2 Reclassification adjustments, net of taxes (54) 33 — (21) Other comprehensive income (loss), net of taxes 63 32 (35) 60 Balance March 31, 2022, net of taxes $ 207 $ (2,711) $ (1,865) $ (4,369) Balance January 1, 2023, net of taxes $ 73 $ (2,408) $ (2,433) $ (4,768) Other comprehensive income (loss) before reclassification adjustments, pretax (66) (47) 79 (34) Tax 14 2 (20) (4) Other comprehensive income (loss) before reclassification adjustments, net of taxes (52) (45) 59 (38) Reclassification adjustments, pretax (102) (1) (7) (2) 9 (100) Tax 21 2 — 23 Reclassification adjustments, net of taxes (81) (5) 9 (77) Other comprehensive income (loss), net of taxes (133) (50) 68 (115) Balance March 31, 2023, net of taxes $ (60) $ (2,458) $ (2,365) $ (4,883) (1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales . (2) Includes net amortization of prior service cost, actuarial gains and losses, settlements and curtailments included in net periodic benefit cost (see Note 10).

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company’s operations are principally managed on a product basis and include two operating segments, Pharmaceutical and Animal Health, both of which are 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. 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. The Animal Health segment discovers, develops, manufactures and markets a wide range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all major livestock and companion animal species. The Company also offers an extensive suite of digitally connected identification, traceability and monitoring products. The Company sells its products to veterinarians, distributors, animal producers, farmers and pet owners. Sales of the Company’s products were as follows: Three Months Ended March 31, 2023 2022 ($ in millions) U.S. Int’l Total U.S. Int’l Total Pharmaceutical: Oncology Keytruda $ 3,485 $ 2,310 $ 5,795 $ 2,779 $ 2,030 $ 4,809 Alliance revenue-Lynparza (1) 142 133 275 141 125 266 Alliance revenue-Lenvima (1) 153 79 232 156 71 227 Alliance revenue-Reblozyl (2) 30 12 43 27 25 52 Welireg 41 1 42 18 — 18 Vaccines Gardasil/Gardasil 9 416 1,556 1,972 418 1,042 1,460 ProQuad/M-M-R II /Varivax 421 107 528 371 99 470 RotaTeq 180 117 297 175 41 216 Vaxneuvance 94 13 106 5 — 5 Pneumovax 23 40 56 96 118 55 173 Vaqta 30 10 40 29 7 36 Hospital Acute Care Bridion 276 210 487 195 199 395 Prevymis 54 75 129 40 54 94 Primaxin 4 76 80 1 58 58 Dificid 62 3 65 49 3 52 Noxafil 14 46 60 10 48 57 Zerbaxa 27 23 50 18 12 30 Cardiovascular Alliance revenue-Adempas/Verquvo (3) 83 16 99 71 1 72 Adempas — 59 59 — 61 61 Virology Lagevrio (2) 394 392 1,523 1,723 3,247 Isentress/Isentress HD 52 71 123 61 97 158 Neuroscience Belsomra 16 40 56 20 48 69 Immunology Simponi — 180 180 — 186 186 Remicade — 51 51 — 61 61 Diabetes Januvia 271 280 551 325 454 779 Janumet 56 272 329 63 391 454 Other pharmaceutical (4) 172 414 584 160 443 602 Total Pharmaceutical segment sales 6,117 6,604 12,721 6,773 7,334 14,107 Animal Health: Livestock 174 676 849 171 661 832 Companion Animals 308 334 642 302 348 650 Total Animal Health segment sales 482 1,010 1,491 473 1,009 1,482 Total segment sales 6,599 7,614 14,212 7,246 8,343 15,589 Other (5) 60 214 275 93 220 312 $ 6,659 $ 7,828 $ 14,487 $ 7,339 $ 8,563 $ 15,901 U.S. plus international may not equal total due to rounding. (1) Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3). (2) Alliance revenue for Reblozyl represents royalties and, for 2022, also includes the receipt of a regulatory approval milestone payment (see Note 3). (3) Alliance revenue for Adempas/Verquvo represents Merck’s share of profits from sales in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs (see Note 3). (4) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. (5) Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which increased sales by $99 million and $69 million for the three months ended March 31, 2023 and 2022, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the three months ended March 31, 2023 and 2022 also includes $51 million and $114 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements. 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 $3.1 billion and $2.9 billion for the three months ended March 31, 2023 and 2022, respectively. Consolidated sales by geographic area where derived are as follows: Three Months Ended ($ in millions) 2023 2022 United States $ 6,659 $ 7,339 Europe, Middle East and Africa 3,303 4,359 China 1,715 1,143 Asia Pacific (other than China and Japan) 846 930 Japan 758 989 Latin America 661 607 Other 545 534 $ 14,487 $ 15,901 A reconciliation of segment profits to Income Before Taxes is as follows: Three Months Ended ($ in millions) 2023 2022 Segment profits: Pharmaceutical segment $ 9,140 $ 9,501 Animal Health segment 566 585 Total segment profits 9,706 10,086 Other profits 164 194 Unallocated: Interest income 112 7 Interest expense (242) (243) Amortization (543) (699) Depreciation (398) (378) Research and development (4,147) (2,446) Restructuring costs (67) (53) Charge for Zetia antitrust litigation settlements (573) — Other unallocated, net (362) (1,607) $ 3,650 $ 4,861 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 intangible assets and 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 arrangements. 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 measurement of liabilities for contingent consideration, and other miscellaneous income or expense items.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationThe 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 (U.S.) (GAAP) 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 24, 2023. 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.
Reclassifications	Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted	Recently Adopted Accounting Standard In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The Company adopted the guidance effective January 1, 2023. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. Recently Issued Accounting Standard Not Yet Adopted
Legal Costs	Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable.

Collaborative Arrangements (Tab

Collaborative Arrangements (Tables)	3 Months Ended
	Mar. 31, 2023
Collaborative Arrangements [Abstract]
Collaboration Arrangements	Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Lynparza $ 275 $ 266 Alliance revenue - Koselugo 23 9 Total alliance revenue $ 298 $ 275 Cost of sales (1) 70 299 Selling, general and administrative 47 44 Research and development 21 26 ($ in millions) March 31, 2023 December 31, 2022 Receivables from AstraZeneca included in Other current assets $ 303 $ 303 Payables to AstraZeneca included in Accrued and other current liabilities (2) 21 123 Payables to AstraZeneca included in Other Noncurrent Liabilities (2) 600 600 (1) Represents amortization of capitalized milestone payments. Amount in the first quarter of 2022 includes $250 million of cumulative amortization catch-up expense as noted above. (2) Includes accrued milestone payments. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Lenvima $ 232 $ 227 Cost of sales (1) 126 53 Selling, general and administrative 51 31 Research and development 39 57 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Eisai included in Other current assets $ 244 $ 214 Payables to Eisai included in Accrued and other current liabilities (2) 125 — (1) Represents amortization of capitalized milestone payments. Amount in the first quarter of 2023 includes $72 million of cumulative amortization catch-up expense as noted above. (2) Represents an accrued milestone payment. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Alliance revenue - Adempas/Verquvo $ 99 $ 72 Net sales of Adempas recorded by Merck 59 61 Net sales of Verquvo recorded by Merck 7 3 Total sales $ 165 $ 136 Cost of sales (1) 57 50 Selling, general and administrative 33 23 Research and development 25 17 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Bayer included in Other current assets $ 142 $ 143 Payables to Bayer included in Accrued and other current liabilities 68 80 (1) Includes amortization of intangible assets. Summarized financial information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Net sales of Lagevrio recorded by Merck $ 392 $ 3,247 Cost of sales (1)(2) 221 1,726 Selling, general and administrative (2) 27 35 Research and development (2) 16 25 ($ in millions) March 31, 2023 December 31, 2022 Payables to Ridgeback included in Accrued and other current liabilities (3) $ 191 $ 348 (1) Includes royalty expense and amortization of capitalized milestone payments. (2) Expenses include an allocation for overhead charges. (3) Includes accrued royalties. Amount at December 31, 2022 also includes an accrued milestone payment .

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, 2023 ($ in millions) Separation Accelerated Other Total Cost of sales $ — $ 21 $ 8 $ 29 Selling, general and administrative — — 1 1 Restructuring costs 41 — 26 67 $ 41 $ 21 $ 35 $ 97 Three Months Ended March 31, 2022 ($ in millions) Separation Accelerated Other Total Cost of sales $ — $ 18 $ 28 $ 46 Selling, general and administrative — 4 17 21 Research and development — 7 — 7 Restructuring costs 26 — 27 53 $ 26 $ 29 $ 72 $ 127
Charges and Spending Relating to Restructuring Activities by Program	The following table summarizes the charges and spending relating to restructuring program activities for the three months ended March 31, 2023: ($ in millions) Separation Accelerated Other Total Restructuring reserves January 1, 2023 $ 479 $ — $ 34 $ 513 Expenses 41 21 35 97 (Payments) receipts, net (47) — (27) (74) Non-cash activity — (21) (9) (30) Restructuring reserves March 31, 2023 (1) $ 473 $ — $ 33 $ 506

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
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 March 31, Three Months Ended March 31, ($ in millions) 2023 2022 2023 2022 Net Investment Hedging Relationships Foreign exchange contracts $ 1 $ (16) $ 1 $ (1) Euro-denominated notes 52 (53) — — (1) No amounts were reclassified from AOCL into income related to the sale of a subsidiary.
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: March 31, 2023 December 31, 2022 Fair Value of Derivative U.S. Dollar Fair Value of Derivative U.S. Dollar ($ in millions) Asset Liability Asset Liability Derivatives Designated as Hedging Instruments Balance Sheet Caption Interest rate swap contracts Other Assets $ 1 $ — $ 300 $ — $ — $ — Interest rate swap contracts Other Noncurrent Liabilities — 1 200 — — — Foreign exchange contracts Other current assets 104 — 4,253 220 — 4,824 Foreign exchange contracts Other Assets 32 — 1,756 27 — 1,609 Foreign exchange contracts Accrued and other current liabilities — 116 3,444 — 101 2,691 Foreign exchange contracts Other Noncurrent Liabilities — 2 120 — 1 91 $ 137 $ 119 $ 10,073 $ 247 $ 102 $ 9,215 Derivatives Not Designated as Hedging Instruments Balance Sheet Caption Foreign exchange contracts Other current assets $ 121 $ — $ 9,507 $ 186 $ — $ 8,540 Foreign exchange contracts Other Assets 1 — 65 — — — Foreign exchange contracts Accrued and other current liabilities — 164 10,592 — 307 10,926 Foreign exchange contracts Other Noncurrent Liabilities — 1 124 — — — $ 122 $ 165 $ 20,288 $ 186 $ 307 $ 19,466 $ 259 $ 284 $ 30,361 $ 433 $ 409 $ 28,681
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: March 31, 2023 December 31, 2022 ($ in millions) Asset Liability Asset Liability Gross amounts recognized in the condensed consolidated balance sheet $ 259 $ 284 $ 433 $ 409 Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet (148) (148) (220) (220) Cash collateral received/posted (13) — (66) (19) Net amounts $ 98 $ 136 $ 147 $ 170
Location and Amount of Pretax Gains and Losses of Derivatives	The table below provides information regarding the location and amount of pretax gains and losses of derivatives designated in fair value or cash flow hedging relationships: Three Months Ended March 31, ($ in millions) 2023 2022 2023 2022 2023 2022 Financial Statement Caption in which Effects of Fair Value or Cash Flow Hedges are Recorded Sales Other (income) expense, net (1) Other comprehensive income (loss) $ 14,487 $ 15,901 $ 89 $ 708 $ (115) $ 60 (Gain) loss on fair value hedging relationships: Interest rate swap contracts Hedged items — — — (10) — — Derivatives designated as hedging instruments — — — 4 — — Impact of cash flow hedging relationships: Foreign exchange contracts Amount of (loss) gain recognized in OCI on derivatives — — — — (66) 148 Increase in Sales as a result of AOCL reclassifications 101 67 — — (101) (67) Interest rate contracts Amount of gain recognized in Other (income) expense, net on derivatives — — (1) (1) — — Amount of loss recognized in OCI on derivatives — — — — (1) (1) (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 March 31, ($ in millions) 2023 2022 Derivatives Not Designated as Hedging Instruments Income Statement Caption Foreign exchange contracts (1) Other (income) expense, net $ 13 $ 28 Foreign exchange contracts (2) Sales 2 (2) (1) These derivative contracts primarily 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: March 31, 2023 December 31, 2022 Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair ($ in millions) Gains Losses Gains Losses Commercial paper $ 663 $ — $ — $ 663 $ 498 $ — $ — $ 498 U.S. government and agency securities 92 — — 92 68 — — 68 Corporate notes and bonds 4 — — 4 3 — — 3 Foreign government bonds 1 — — 1 — — — — Total debt securities $ 760 $ — $ — $ 760 $ 569 $ — $ — $ 569 Publicly traded equity securities (1) 1,585 1,284 Total debt and publicly traded equity securities $ 2,345 $ 1,853 (1) Unrealized net gains of $338 million were recorded in Other (income) expense, net in the first quarter of 2023 on equity securities still held at March 31, 2023. Unrealized net losses of $225 million were recorded in Other (income) expense, net in the first quarter of 2022 on equity securities still held at March 31, 2022.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ($ in millions) March 31, 2023 December 31, 2022 Assets Investments Commercial paper $ — $ 663 $ — $ 663 $ — $ 498 $ — $ 498 U.S. government and agency securities — 22 — 22 — — — — Foreign government bonds — 1 — 1 — — — — Publicly traded equity securities 1,284 — — 1,284 1,015 — — 1,015 1,284 686 — 1,970 1,015 498 — 1,513 Other assets (1) U.S. government and agency securities 70 — — 70 68 — — 68 Corporate notes and bonds 4 — — 4 3 — — 3 Publicly traded equity securities 301 — — 301 269 — — 269 375 — — 375 340 — — 340 Derivative assets (2) Purchased currency options — 139 — 139 — 215 — 215 Forward exchange contracts — 119 — 119 — 218 — 218 Interest rate swap contracts — 1 — 1 — — — — — 259 — 259 — 433 — 433 Total assets $ 1,659 $ 945 $ — $ 2,604 $ 1,355 $ 931 $ — $ 2,286 Liabilities Other liabilities Contingent consideration $ — $ — $ 353 $ 353 $ — $ — $ 456 $ 456 Derivative liabilities (2) Forward exchange contracts — 276 — 276 — 402 — 402 Written currency options — 7 — 7 — 7 — 7 Interest rate swap contracts — 1 — 1 — — — — — 284 — 284 — 409 — 409 Total liabilities $ — $ 284 $ 353 $ 637 $ — $ 409 $ 456 $ 865 (1) Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans. (2) The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.
Information About the Changes in Liabilities for Contingent Consideration	Summarized information about the changes in the fair value of liabilities for contingent consideration associated with business combinations is as follows: ($ in millions) 2023 2022 Fair value January 1 $ 456 $ 777 Changes in estimated fair value (1) 14 (84) Payments (117) (119) Other — (2) Fair value March 31 (2) $ 353 $ 572 (1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net . Includes cumulative translation adjustments. (2) At March 31, 2023, $263 million of the liabilities relate to the termination of the Sanofi Pasteur MSD joint venture in 2016. As part of the termination, Merck recorded a liability for contingent future royalty payments of 11.5% on net sales of all Merck products that were previously sold by the joint venture through December 31, 2024. The fair value of this liability is determined utilizing the estimated amount and timing of projected cash flows using a risk-adjusted discount rate to present value the cash flows. Balance at March 31, 2023 includes $127 million recorded as a current liability for amounts expected to be paid within the next 12 months.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of: ($ in millions) March 31, 2023 December 31, 2022 Finished goods $ 1,883 $ 1,841 Raw materials and work in process 7,348 7,063 Supplies 266 238 Total (approximates current cost) 9,497 9,142 Decrease to LIFO cost (350) (293) $ 9,147 $ 8,849 Recognized as: Inventories $ 5,863 $ 5,911 Other Assets 3,284 2,938

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Equity	Three Months Ended March 31, Common Stock Other Retained Accumulated Treasury Stock Non- Total ($ and shares in millions except per share amounts) Shares Par Value Shares Cost Balance at January 1, 2022 3,577 $ 1,788 $ 44,238 $ 53,696 $ (4,429) 1,049 $ (57,109) $ 73 $ 38,257 Net income attributable to Merck & Co., Inc. — — — 4,310 — — — — 4,310 Other comprehensive income, net of taxes — — — — 60 — — — 60 Cash dividends declared on common stock ($0.69 per share) — — — (1,754) — — — — (1,754) Share-based compensation plans and other — — 37 — — — 46 — 83 Net loss attributable to noncontrolling interests — — — — — — — (3) (3) Balance at March 31, 2022 3,577 $ 1,788 $ 44,275 $ 56,252 $ (4,369) 1,049 $ (57,063) $ 70 $ 40,953 Balance at January 1, 2023 3,577 $ 1,788 $ 44,379 $ 61,081 $ (4,768) 1,039 $ (56,489) $ 67 $ 46,058 Net income attributable to Merck & Co., Inc. — — — 2,821 — — — — 2,821 Other comprehensive loss, net of taxes — — — — (115) — — — (115) Cash dividends declared on common stock ($0.73 per share) — — — (1,863) — — — — (1,863) Treasury stock shares purchased — — — — — 1 (149) — (149) Share-based compensation plans and other — — 88 — — — 61 — 149 Net income attributable to noncontrolling interests — — — — — — — 4 4 Balance at March 31, 2023 3,577 $ 1,788 $ 44,467 $ 62,039 $ (4,883) 1,040 $ (56,577) $ 71 $ 46,905

Pension and Other Postretirem_2

Pension and Other Postretirement Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Net Benefit Costs	The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost (credit) of such plans consisted of the following components: Three Months Ended 2023 2022 ($ in millions) U.S. International U.S. International Service cost $ 76 $ 49 $ 99 $ 75 Interest cost 133 74 103 38 Expected return on plan assets (187) (128) (196) (101) Amortization of unrecognized prior service credit — (3) (8) (4) Net (gain) loss amortization — (1) 56 25 Curtailments 2 — 3 — Settlements 21 — 1 — $ 45 $ (9) $ 58 $ 33
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net Benefit Costs	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 ($ in millions) 2023 2022 Service cost $ 8 $ 12 Interest cost 16 11 Expected return on plan assets (16) (21) Amortization of unrecognized prior service credit (12) (14) Net gain amortization (11) (11) $ (15) $ (23)

Other (Income) Expense, Net (Ta

Other (Income) Expense, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Other (Income) Expense, Net	Other (income) expense, net, consisted of: Three Months Ended ($ in millions) 2023 2022 Interest income $ (112) $ (7) Interest expense 242 243 Exchange losses 61 39 (Income) loss from investments in equity securities, net (1) (450) 708 Net periodic defined benefit plan (credit) cost other than service cost (115) (121) Other, net 463 (154) $ 89 $ 708

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Calculations of Earnings Per Share	The calculations of earnings per share are as follows: Three Months Ended ($ and shares in millions except per share amounts) 2023 2022 Net Income Attributable to Merck & Co., Inc. $ 2,821 $ 4,310 Average common shares outstanding 2,538 2,528 Common shares issuable (1) 13 9 Average common shares outstanding assuming dilution 2,551 2,537 Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders $ 1.11 $ 1.70 Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders $ 1.11 $ 1.70 (1) Issuable primarily under share-based compensation plans.

Other Comprehensive Income (L_2

Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Changes in AOCI by Component	Changes in each component of other comprehensive income (loss) are as follows: Three Months Ended March 31, ($ in millions) Derivatives Employee Foreign Currency Accumulated Other Balance January 1, 2022, net of taxes $ 144 $ (2,743) $ (1,830) $ (4,429) Other comprehensive income (loss) before reclassification adjustments, pretax 148 1 (18) 131 Tax (31) (2) (17) (50) Other comprehensive income (loss) before reclassification adjustments, net of taxes 117 (1) (35) 81 Reclassification adjustments, pretax (68) (1) 45 (2) — (23) Tax 14 (12) — 2 Reclassification adjustments, net of taxes (54) 33 — (21) Other comprehensive income (loss), net of taxes 63 32 (35) 60 Balance March 31, 2022, net of taxes $ 207 $ (2,711) $ (1,865) $ (4,369) Balance January 1, 2023, net of taxes $ 73 $ (2,408) $ (2,433) $ (4,768) Other comprehensive income (loss) before reclassification adjustments, pretax (66) (47) 79 (34) Tax 14 2 (20) (4) Other comprehensive income (loss) before reclassification adjustments, net of taxes (52) (45) 59 (38) Reclassification adjustments, pretax (102) (1) (7) (2) 9 (100) Tax 21 2 — 23 Reclassification adjustments, net of taxes (81) (5) 9 (77) Other comprehensive income (loss), net of taxes (133) (50) 68 (115) Balance March 31, 2023, net of taxes $ (60) $ (2,458) $ (2,365) $ (4,883) (1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCL to Sales . (2) Includes net amortization of prior service cost, actuarial gains and losses, settlements and curtailments included in net periodic benefit cost (see Note 10).

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Sales from Products	Sales of the Company’s products were as follows: Three Months Ended March 31, 2023 2022 ($ in millions) U.S. Int’l Total U.S. Int’l Total Pharmaceutical: Oncology Keytruda $ 3,485 $ 2,310 $ 5,795 $ 2,779 $ 2,030 $ 4,809 Alliance revenue-Lynparza (1) 142 133 275 141 125 266 Alliance revenue-Lenvima (1) 153 79 232 156 71 227 Alliance revenue-Reblozyl (2) 30 12 43 27 25 52 Welireg 41 1 42 18 — 18 Vaccines Gardasil/Gardasil 9 416 1,556 1,972 418 1,042 1,460 ProQuad/M-M-R II /Varivax 421 107 528 371 99 470 RotaTeq 180 117 297 175 41 216 Vaxneuvance 94 13 106 5 — 5 Pneumovax 23 40 56 96 118 55 173 Vaqta 30 10 40 29 7 36 Hospital Acute Care Bridion 276 210 487 195 199 395 Prevymis 54 75 129 40 54 94 Primaxin 4 76 80 1 58 58 Dificid 62 3 65 49 3 52 Noxafil 14 46 60 10 48 57 Zerbaxa 27 23 50 18 12 30 Cardiovascular Alliance revenue-Adempas/Verquvo (3) 83 16 99 71 1 72 Adempas — 59 59 — 61 61 Virology Lagevrio (2) 394 392 1,523 1,723 3,247 Isentress/Isentress HD 52 71 123 61 97 158 Neuroscience Belsomra 16 40 56 20 48 69 Immunology Simponi — 180 180 — 186 186 Remicade — 51 51 — 61 61 Diabetes Januvia 271 280 551 325 454 779 Janumet 56 272 329 63 391 454 Other pharmaceutical (4) 172 414 584 160 443 602 Total Pharmaceutical segment sales 6,117 6,604 12,721 6,773 7,334 14,107 Animal Health: Livestock 174 676 849 171 661 832 Companion Animals 308 334 642 302 348 650 Total Animal Health segment sales 482 1,010 1,491 473 1,009 1,482 Total segment sales 6,599 7,614 14,212 7,246 8,343 15,589 Other (5) 60 214 275 93 220 312 $ 6,659 $ 7,828 $ 14,487 $ 7,339 $ 8,563 $ 15,901 U.S. plus international may not equal total due to rounding. (1) Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3). (2) Alliance revenue for Reblozyl represents royalties and, for 2022, also includes the receipt of a regulatory approval milestone payment (see Note 3). (3) Alliance revenue for Adempas/Verquvo represents Merck’s share of profits from sales in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs (see Note 3). (4) Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately. (5) Other is primarily comprised of miscellaneous corporate revenue, including revenue hedging activities which increased sales by $99 million and $69 million for the three months ended March 31, 2023 and 2022, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the three months ended March 31, 2023 and 2022 also includes $51 million and $114 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.
Consolidated Sales by Geographic Area	Consolidated sales by geographic area where derived are as follows: Three Months Ended ($ in millions) 2023 2022 United States $ 6,659 $ 7,339 Europe, Middle East and Africa 3,303 4,359 China 1,715 1,143 Asia Pacific (other than China and Japan) 846 930 Japan 758 989 Latin America 661 607 Other 545 534 $ 14,487 $ 15,901
Reconciliation of Segment Profits to Income before Taxes	A reconciliation of segment profits to Income Before Taxes is as follows: Three Months Ended ($ in millions) 2023 2022 Segment profits: Pharmaceutical segment $ 9,140 $ 9,501 Animal Health segment 566 585 Total segment profits 9,706 10,086 Other profits 164 194 Unallocated: Interest income 112 7 Interest expense (242) (243) Amortization (543) (699) Depreciation (398) (378) Research and development (4,147) (2,446) Restructuring costs (67) (53) Charge for Zetia antitrust litigation settlements (573) — Other unallocated, net (362) (1,607) $ 3,650 $ 4,861

Spin-Off of Organon & Co. (Deta

Spin-Off of Organon & Co. (Details) - USD ($) $ in Millions		3 Months Ended
	Jun. 02, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organon & Co.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue from related party		$ 94	$ 99
Related party amount in cost of sales		107	$ 105
Due from related parties, current		473		$ 511
Due to related parties, current		$ 229		$ 345
Minimum | Transition services agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of continuing involvement after disposal	25 months
Minimum | Manufacturing and supply agreements
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of continuing involvement after disposal	4 years
Maximum | Transition services agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of continuing involvement after disposal	35 months
Maximum | Manufacturing and supply agreements
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of continuing involvement after disposal	10 years

Acquisitions, Research Collab_2

Acquisitions, Research Collaborations and License Agreements (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended			3 Months Ended			12 Months Ended
	Apr. 30, 2023	Feb. 28, 2023	Jan. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Research and development					$ 4,276	$ 2,576
Prometheus Biosciences, Inc. | Subsequent Event
Business Acquisition [Line Items]
Asset acquisition, share price (in dollars per share)	$ 200
Asset acquisition, price of acquisition, expected	$ 10,800
Research and development				$ 10,300
Imago Bio Sciences, Inc.
Business Acquisition [Line Items]
Research and development			$ 1,200
Asset acquisition costs			60
Net assets acquired			219
Consideration transferred, asset acquisition			1,350
Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Business Acquisition [Line Items]
Research and development		$ 175
Eligible future contingent development-related payments (up to)		1,000
Regulatory milestones payments		2,800
Sales milestone payments		$ 5,500
Preferred stock investment in counterparty			$ 100
Eisai | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Alliance revenue - Lenvima
Business Acquisition [Line Items]
Capitalized milestone payment						$ 25	$ 50

Collaborative Arrangements - Na

Collaborative Arrangements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amortization	$ 543	$ 699
Sales	14,487	15,901
Operating Segments
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	14,212	15,589
Operating Segments | Pharmaceutical
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	12,721	14,107
Lynparza
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amortization		250
Lynparza | Other Noncurrent Assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Finite-lived intangible assets	1,500
Lenvima
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amortization	72
Lenvima | Operating Segments | Pharmaceutical
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	232	227
Lenvima | Other Noncurrent Assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Finite-lived intangible assets	812
Verquvo | Other Intangible Assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Finite-lived intangible assets	56
Adempas | Operating Segments | Pharmaceutical
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	59	61
Adempas | Other Intangible Assets
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Finite-lived intangible assets	613
Alliance Revenue - Reblozyl | Operating Segments | Pharmaceutical
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	43	52
AstraZeneca | Sales-Based Milestones | Lynparza
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Probable contingent payments		600
Liabilities		600
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Lynparza
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales-based milestone payments		400
Potential future sales-based milestone payments	2,100
Regulatory milestone payments accrued			$ 105
Capitalized milestone payment			250
Potential future regulatory milestone payments	1,100
Eisai | Sales-Based Milestones | Lenvima
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Probable contingent payments	125
Liabilities	125
Eisai | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Lenvima
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales-based milestone payments		300	600
Potential future sales-based milestone payments	$ 2,400
Capitalized milestone payment		25	$ 50
Bayer AG | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales-based milestone payments		400
Bristol Myers Squibb | Licensing Agreements
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty rate, deduction	0.50
Royalties		32
Bristol Myers Squibb | Licensing Agreements | Sales-Based Milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Contingent proceeds collaborative arrangement	$ 80
Bristol Myers Squibb | Licensing Agreements | Regulatory Milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from Collaborators		$ 20
Bristol Myers Squibb | Licensing Agreements | Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty rate	20%
Bristol Myers Squibb | Licensing Agreements | Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty rate	24%

Collaborative Arrangements - Fi

Collaborative Arrangements - Financial Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	$ 14,487	$ 15,901
Cost of sales	3,926	5,380
Selling, general and administrative	2,479	2,323
Research and development	4,276	2,576
Payables included in Accrued and other liabilities	23,131		$ 24,239
Amortization	543	699
Alliance revenue - Lenvima
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amortization	72
Other current assets | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Receivables included in Other current assets	303		303
Other current assets | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Receivables included in Other current assets	244		214
Other current assets | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Receivables included in Other current assets	142		143
Accounts Payable and Accrued Liabilities | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payables included in Accrued and other liabilities	21		123
Accounts Payable and Accrued Liabilities | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payables included in Accrued and other liabilities	125		0
Accounts Payable and Accrued Liabilities | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payables included in Accrued and other liabilities	68		80
Accounts Payable and Accrued Liabilities | Ridgeback Biotherapeutics LP | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payables included in Accrued and other liabilities	191		348
Other Noncurrent Liabilities | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Payables included in Other Noncurrent Liabilities	600		$ 600
Revenue | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Alliance revenue - profit sharing	298	275
Revenue | AstraZeneca | Collaborative Arrangement | Alliance revenue - Lynparza
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Alliance revenue - profit sharing	275	266
Revenue | AstraZeneca | Collaborative Arrangement | Alliance revenue - Koselugo
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Alliance revenue - profit sharing	23	9
Revenue | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Alliance revenue - profit sharing	232	227
Revenue | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Alliance revenue - profit sharing	99	72
Sales	165	136
Revenue | Bayer AG | Collaborative Arrangement | Adempas
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net sales by Merck	59	61
Revenue | Bayer AG | Collaborative Arrangement | Verquvo
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net sales by Merck	7	3
Revenue | Ridgeback Biotherapeutics LP | Collaborative Arrangement | Lagevrio
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sales	392	3,247
Cost of sales | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of sales	70	299
Amortization of intangible assets	250
Cost of sales | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of sales	126	53
Cost of sales | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of sales	57	50
Cost of sales | Ridgeback Biotherapeutics LP | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of sales	221	1,726
Selling, general and administrative | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Selling, general and administrative	47	44
Selling, general and administrative | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Selling, general and administrative	51	31
Selling, general and administrative | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Selling, general and administrative	33	23
Selling, general and administrative | Ridgeback Biotherapeutics LP | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Selling, general and administrative	27	35
Research and development | AstraZeneca | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development	21	26
Research and development | Eisai | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development	39	57
Research and development | Bayer AG | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development	25	17
Research and development | Ridgeback Biotherapeutics LP | Collaborative Arrangement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Research and development	$ 16	$ 25

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Expected restructuring and related cost	$ 3,700
Estimate of cumulative pre tax costs that will result in cash outlays	70%
Estimate of cumulative pre tax costs that will be noncash	30%
Total pretax restructuring costs	$ 97	$ 127
Cumulative costs since program inception	$ 3,400
Forecast
Restructuring Cost and Reserve [Line Items]
Expected restructuring and related cost			$ 400

Restructuring - Charges Activit

Restructuring - Charges Activities by Type of Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	$ 97	$ 127
Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	41	26
Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	21	29
Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	35	72
Cost of sales
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	29	46
Cost of sales | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0
Cost of sales | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	21	18
Cost of sales | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	8	28
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	1	21
Selling, general and administrative | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0
Selling, general and administrative | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	4
Selling, general and administrative | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	1	17
Research and development
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs		7
Research and development | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs		0
Research and development | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs		7
Research and development | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs		0
Restructuring costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	67	53
Restructuring costs | Separation Costs
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	41	26
Restructuring costs | Accelerated Depreciation
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	0	0
Restructuring costs | Other
Restructuring Cost and Reserve [Line Items]
Total pretax restructuring costs	$ 26	$ 27

Restructuring - Activities by P

Restructuring - Activities by Program (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 513
Expenses	97	$ 127
(Payments) receipts, net	(74)
Non-cash activity	(30)
Restructuring reserve, ending balance	506
Separation Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	479
Expenses	41	26
(Payments) receipts, net	(47)
Non-cash activity	0
Restructuring reserve, ending balance	473
Accelerated Depreciation
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	0
Expenses	21	29
(Payments) receipts, net	0
Non-cash activity	(21)
Restructuring reserve, ending balance	0
Other
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	34
Expenses	35	$ 72
(Payments) receipts, net	(27)
Non-cash activity	(9)
Restructuring reserve, ending balance	$ 33

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023 USD ($) interest_rate_swap	Mar. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Apr. 30, 2023 USD ($) interest_rate_swap	Dec. 31, 2022 USD ($)
Derivative [Line Items]
Number of interest rate swaps held (in interest rate swaps) | interest_rate_swap	5
Total swap notional amount	$ 30,361				$ 28,681
Pretax net unrealized losses on derivatives maturing within next 12 months estimated to be reclassified from AOCI to sales	71
Equity investments without readily determinable fair values	942	$ 643
Unrealized gains recognized on investments in equity securities without readily determinable fair value	1	14
Unrealized losses recognized on investments in equity securities without readily determinable fair values	21
Cumulative unrealized gains on investments	287
Cumulative unrealized losses on investments	40
Equity securities, noncurrent	725	1,200
(Income) loss from investments in equity securities, net	(450)	708
Fair value of loans payable and long-term debt, including current portion	28,200				26,700
Debt, carrying amount	30,700				30,700
Factored accounts receivable	2,400		$ 2,500
Restricted cash	31				67
Cash collateral received from counterparties	13				66
Cash collateral advanced to counterparties					19
Subsequent Event
Derivative [Line Items]
Number of interest rate swaps held (in interest rate swaps) | interest_rate_swap				2
Equity Funds
Derivative [Line Items]
(Income) loss from investments in equity securities, net	(132)	$ 509
Level 2
Derivative [Line Items]
Cash equivalents	8,800				11,300
Interest rate swap contracts
Derivative [Line Items]
Total swap notional amount	100
Interest rate swap contracts | Subsequent Event
Derivative [Line Items]
Total swap notional amount				$ 100
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Total swap notional amount	10,073				9,215
Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Total swap notional amount	$ 20,288				$ 19,466
Maximum | Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Maximum average period of maturities of contracts in years (less than)	2 years
Maximum | Derivatives Not Designated as Hedging Instruments
Derivative [Line Items]
Maximum average period of maturities of contracts in years (less than)	6 months

Financial Instruments - Effect

Financial Instruments - Effect of Net Investment Hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income	$ 1	$ (16)
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	1	(1)
Euro-denominated notes
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income	52	(53)
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

Financial Instruments - Fair Va

Financial Instruments - Fair Value of Derivatives Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 259	$ 433
Fair Value of Derivative, Liability	284	409
U.S Dollar Notional Amount	30,361	28,681
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	137	247
Fair Value of Derivative, Liability	119	102
U.S Dollar Notional Amount	10,073	9,215
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	122	186
Fair Value of Derivative, Liability	165	307
U.S Dollar Notional Amount	20,288	19,466
Interest Rate Contract | Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 1	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Fair Value of Derivative, Liability	$ 1	$ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Noncurrent Liabilities	Other Noncurrent Liabilities
Interest Rate Contract | Derivatives Designated as Hedging Instruments | Other Assets
Derivatives, Fair Value [Line Items]
U.S Dollar Notional Amount	$ 300	$ 0
Interest Rate Contract | Derivatives Designated as Hedging Instruments | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
U.S Dollar Notional Amount	200	0
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 32	$ 27
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
U.S Dollar Notional Amount	$ 1,756	$ 1,609
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	$ 2	$ 1
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Noncurrent Liabilities	Other Noncurrent Liabilities
U.S Dollar Notional Amount	$ 120	$ 91
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 104	$ 220
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
U.S Dollar Notional Amount	$ 4,253	$ 4,824
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	$ 116	$ 101
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued and other current liabilities	Accrued and other current liabilities
U.S Dollar Notional Amount	$ 3,444	$ 2,691
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other Assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 1	$ 0
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
U.S Dollar Notional Amount	$ 65	$ 0
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other Noncurrent Liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	$ 1	$ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Noncurrent Liabilities	Other Noncurrent Liabilities
U.S Dollar Notional Amount	$ 124	$ 0
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Asset	$ 121	$ 186
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
U.S Dollar Notional Amount	$ 9,507	$ 8,540
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Accrued and other current liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Derivative, Liability	$ 164	$ 307
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued and other current liabilities	Accrued and other current liabilities
U.S Dollar Notional Amount	$ 10,592	$ 10,926

Financial Instruments - Informa

Financial Instruments - Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts recognized in the consolidated balance sheet, asset	$ 259	$ 433
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, asset	(148)	(220)
Cash collateral received, asset	(13)	(66)
Net amounts, asset	98	147
Gross amounts recognized in the consolidated balance sheet, liability	284	409
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, liability	(148)	(220)
Cash collateral received, liability	0	(19)
Net amounts, liability	$ 136	$ 170

Financial Instruments - Locatio

Financial Instruments - Location and Amount of Pretax (Gains) Losses of Derivatives (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Sales	$ 14,487	$ 15,901
Other (income) expense, net	89	708
Other comprehensive income (loss)	(115)	60
Interest rate swap contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in OCI on derivatives	(1)	(1)
Amount of gain recognized in Other (income) expense, net on derivatives	(1)	(1)
Interest rate swap contracts | Other (income) expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	0	(10)
Derivatives designated as hedging instruments	0	4
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in OCI on derivatives	(66)	148
Increase in Sales as a result of AOCL reclassifications	(101)	(67)
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	$ 101	$ 67

Financial Instruments - Income

Financial Instruments - Income Statement Effects on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Currency Swap | Other (income) expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Derivative Pretax (Gain) Loss Recognized in Income	$ 13	$ 28
Foreign Exchange Future | Sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Derivative Pretax (Gain) Loss Recognized in Income	$ 2	$ (2)

Financial Instruments - Infor_2

Financial Instruments - Information on Available-for-sale Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Debt securities, amortized cost	$ 760		$ 569
Debt securities, unrealized gains	0		0
Debt securities, unrealized losses	0		0
Debt securities, fair value	760		569
Publicly traded equity securities, fair value	1,585		1,284
Total debt and publicly traded equity securities, fair value	2,345		1,853
Unrealized net (gains) losses	(338)	$ 225
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Debt securities, amortized cost	663		498
Debt securities, unrealized gains	0		0
Debt securities, unrealized losses	0		0
Debt securities, fair value	663		498
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Debt securities, amortized cost	92		68
Debt securities, unrealized gains	0		0
Debt securities, unrealized losses	0		0
Debt securities, fair value	92		68
Corporate notes and bonds
Debt Securities, Available-for-sale [Line Items]
Debt securities, amortized cost	4		3
Debt securities, unrealized gains	0		0
Debt securities, unrealized losses	0		0
Debt securities, fair value	4		3
Foreign government bonds
Debt Securities, Available-for-sale [Line Items]
Debt securities, amortized cost	1		0
Debt securities, unrealized gains	0		0
Debt securities, unrealized losses	0		0
Debt securities, fair value	$ 1		$ 0

Financial Instruments - Financi

Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Assets
Investments	$ 760	$ 569
Publicly traded equity securities	1,585	1,284
Derivative assets	259	433
Liabilities
Contingent consideration	353	456	$ 572	$ 777
Derivative liabilities	284	409
Commercial paper
Assets
Investments	663	498
U.S. government and agency securities
Assets
Investments	92	68
Foreign government bonds
Assets
Investments	1	0
Corporate notes and bonds
Assets
Investments	4	3
Fair Value, Measurements, Recurring
Assets
Investments	1,970	1,513
Other assets	375	340
Derivative assets	259	433
Total assets	2,604	2,286
Liabilities
Contingent consideration	353	456
Derivative liabilities	284	409
Total liabilities	637	865
Fair Value, Measurements, Recurring | Currency options
Assets
Derivative assets	139	215
Liabilities
Derivative liabilities	7	7
Fair Value, Measurements, Recurring | Foreign exchange contracts
Assets
Derivative assets	119	218
Liabilities
Derivative liabilities	276	402
Fair Value, Measurements, Recurring | Interest rate swap contracts
Assets
Derivative assets	1	0
Liabilities
Derivative liabilities	1	0
Fair Value, Measurements, Recurring | Level 1
Assets
Investments	1,284	1,015
Other assets	375	340
Derivative assets	0	0
Total assets	1,659	1,355
Liabilities
Contingent consideration	0	0
Derivative liabilities	0	0
Total liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Currency options
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 2
Assets
Investments	686	498
Other assets	0	0
Derivative assets	259	433
Total assets	945	931
Liabilities
Contingent consideration	0	0
Derivative liabilities	284	409
Total liabilities	284	409
Fair Value, Measurements, Recurring | Level 2 | Currency options
Assets
Derivative assets	139	215
Liabilities
Derivative liabilities	7	7
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts
Assets
Derivative assets	119	218
Liabilities
Derivative liabilities	276	402
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap contracts
Assets
Derivative assets	1	0
Liabilities
Derivative liabilities	1	0
Fair Value, Measurements, Recurring | Level 3
Assets
Investments	0	0
Other assets	0	0
Derivative assets	0	0
Total assets	0	0
Liabilities
Contingent consideration	353	456
Derivative liabilities	0	0
Total liabilities	353	456
Fair Value, Measurements, Recurring | Level 3 | Currency options
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Derivative liabilities	0	0
Fair Value, Measurements, Recurring | Commercial paper
Assets
Investments	663	498
Fair Value, Measurements, Recurring | Commercial paper | Level 1
Assets
Investments	0	0
Fair Value, Measurements, Recurring | Commercial paper | Level 2
Assets
Investments	663	498
Fair Value, Measurements, Recurring | Commercial paper | Level 3
Assets
Investments	0	0
Fair Value, Measurements, Recurring | U.S. government and agency securities
Assets
Investments	22	0
Other assets	70	68
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 1
Assets
Investments	0	0
Other assets	70	68
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 2
Assets
Investments	22	0
Other assets	0	0
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 3
Assets
Investments	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Foreign government bonds
Assets
Investments	1	0
Fair Value, Measurements, Recurring | Foreign government bonds | Level 1
Assets
Investments	0	0
Fair Value, Measurements, Recurring | Foreign government bonds | Level 2
Assets
Investments	1	0
Fair Value, Measurements, Recurring | Foreign government bonds | Level 3
Assets
Investments	0	0
Fair Value, Measurements, Recurring | Publicly traded equity securities
Assets
Publicly traded equity securities	1,284	1,015
Other assets	301	269
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 1
Assets
Publicly traded equity securities	1,284	1,015
Other assets	301	269
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 2
Assets
Publicly traded equity securities	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 3
Assets
Publicly traded equity securities	0	0
Other assets	0	0
Fair Value, Measurements, Recurring | Corporate notes and bonds
Assets
Other assets	4	3
Fair Value, Measurements, Recurring | Corporate notes and bonds | Level 1
Assets
Other assets	4	3
Fair Value, Measurements, Recurring | Corporate notes and bonds | Level 2
Assets
Other assets	0	0
Fair Value, Measurements, Recurring | Corporate notes and bonds | Level 3
Assets
Other assets	$ 0	$ 0

Financial Instruments - Infor_3

Financial Instruments - Information About Changes in Liabilities for Contingent Consideration (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 456	$ 777
Changes in estimated fair value	14	(84)
Payments	(117)	(119)
Other	0	(2)
Fair value, ending balance	353	572
Contingent consideration	353	$ 572
Current liability	127
Sanofi Pasteur
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, ending balance	263
Contingent consideration	$ 263
Contingent consideration, measurement input, discount rate	0.115

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 1,883	$ 1,841
Raw materials and work in process	7,348	7,063
Supplies	266	238
Total (approximates current cost)	9,497	9,142
Decrease to LIFO cost	(350)	(293)
Total current and noncurrent inventories	9,147	8,849
Recognized as:
Inventories	5,863	5,911
Other Assets	$ 3,284	$ 2,938

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory [Line Items]
Inventories classified in Other assets	$ 3,284	$ 2,938
Inventories Not Expected to be Sold Within One Year
Inventory [Line Items]
Inventories classified in Other assets	2,700	2,400
Inventories Produced in Preparation for Product Launches
Inventory [Line Items]
Inventories classified in Other assets	$ 590	$ 516

Contingencies (Details)

Contingencies (Details) $ in Millions				3 Months Ended
	Apr. 13, 2023 patent	Dec. 19, 2022	Jun. 30, 2022 claim	Mar. 31, 2023 USD ($) case company	Mar. 03, 2023 state	Dec. 31, 2022 USD ($)	Aug. 31, 2020 direct_purchaser
Legal Defense Costs
Loss Contingencies [Line Items]
Legal defense costs reserve | $				$ 225		$ 230
Zetia antitrust litigation
Loss Contingencies [Line Items]
Loss contingency, pending claims | direct_purchaser							35
Loss related to litigation settlement | $				$ 572.5
Zetia antitrust litigation | Pending Litigation
Loss Contingencies [Line Items]
Loss contingency, new claims filed | claim			23
RotaTeq Antitrust Litigation | Pending Litigation
Loss Contingencies [Line Items]
Loss Contingency, number of states in which plaintiffs reside | state					35
Complaint Against The Johns Hopkins University | Pending Litigation | Subsequent Event
Loss Contingencies [Line Items]
Loss contingency, number of patents allegedly infringed | patent	5
Gardasil/Gardasil 9 | U.S.
Loss Contingencies [Line Items]
Loss contingency, pending claims | case				95
Gardasil/Gardasil 9 | Non-US
Loss Contingencies [Line Items]
Loss contingency, pending claims | case				15
Gardasil/Gardasil 9 | COLOMBIA
Loss Contingencies [Line Items]
Loss contingency, pending claims | case				1
Bridion | Patents
Loss Contingencies [Line Items]
Loss contingency, claims settled | company				5
Bridion | Patents | Pending Litigation
Loss Contingencies [Line Items]
Loss contingency, pending claims | company				2
Loss contingency, trial period		1 day
Januvia and Janumet | Patents
Loss Contingencies [Line Items]
Loss contingency, claims settled | company				25

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, beginning balance (in shares)	3,577,103,522
Treasury stock, beginning balance (in shares)	1,039,269,638
Equity, beginning balance	$ 46,058	$ 38,257
Net income attributable to Merck & Co., Inc.	2,821	4,310
Other comprehensive income (loss), net of taxes	(115)	60
Cash dividends declared on common stock	(1,863)	(1,754)
Treasury stock shares purchased	(149)
Share-based compensation plans and other	149	83
Net income (loss) attributable to noncontrolling interests	$ 4	(3)
Common stock, ending balance (in shares)	3,577,103,522
Treasury stock, ending balance (in shares)	1,039,651,210
Equity, ending balance	$ 46,905	$ 40,953
Cash dividends declared on common stock (in dollars per share)	$ 0.73	$ 0.69
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, beginning balance (in shares)	3,577,000,000	3,577,000,000
Equity, beginning balance	$ 1,788	$ 1,788
Common stock, ending balance (in shares)	3,577,000,000	3,577,000,000
Equity, ending balance	$ 1,788	$ 1,788
Other Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance	44,379	44,238
Share-based compensation plans and other	88	37
Equity, ending balance	44,467	44,275
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance	61,081	53,696
Net income attributable to Merck & Co., Inc.	2,821	4,310
Cash dividends declared on common stock	(1,863)	(1,754)
Equity, ending balance	62,039	56,252
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance	(4,768)	(4,429)
Other comprehensive income (loss), net of taxes	(115)	60
Equity, ending balance	$ (4,883)	$ (4,369)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock, beginning balance (in shares)	1,039,000,000	1,049,000,000
Equity, beginning balance	$ (56,489)	$ (57,109)
Treasury stock shares purchased (in shares)	1,000,000
Treasury stock shares purchased	$ (149)
Share-based compensation plans and other	$ 61	$ 46
Treasury stock, ending balance (in shares)	1,040,000,000	1,049,000,000
Equity, ending balance	$ (56,577)	$ (57,063)
Non- controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity, beginning balance	67	73
Net income (loss) attributable to noncontrolling interests	4	(3)
Equity, ending balance	$ 71	$ 70

Pension and Other Postretirem_3

Pension and Other Postretirement Benefit Plans - Net Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8	$ 12
Interest cost	16	11
Expected return on plan assets	(16)	(21)
Amortization of unrecognized prior service credit	(12)	(14)
Net (gain) loss amortization	(11)	(11)
Net periodic benefit cost	(15)	(23)
U.S. | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	76	99
Interest cost	133	103
Expected return on plan assets	(187)	(196)
Amortization of unrecognized prior service credit	0	(8)
Net (gain) loss amortization	0	56
Curtailments	2	3
Settlements	21	1
Net periodic benefit cost	45	58
International | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	49	75
Interest cost	74	38
Expected return on plan assets	(128)	(101)
Amortization of unrecognized prior service credit	(3)	(4)
Net (gain) loss amortization	(1)	25
Curtailments	0	0
Settlements	0	0
Net periodic benefit cost	$ (9)	$ 33

Pension and Other Postretirem_4

Pension and Other Postretirement Benefit Plans - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Retirement Benefits [Abstract]
Partial settlement charge	$ 21
Increase to pension liabilities due to remeasurement	$ 44

Other (Income) Expense, Net - S

Other (Income) Expense, Net - Schedule of Other (Income) Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Interest income	$ (112)	$ (7)
Interest expense	242	243
Exchange losses	61	39
Loss (income) from investments in equity securities, net	(450)	708
Net periodic defined benefit plan (credit) cost other than service cost	(115)	(121)
Other, net	463	(154)
Other (income) expense, net	$ 89	$ 708

Other (Income) Expense, Net - N

Other (Income) Expense, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Interest paid	$ 208	$ 211
Zetia antitrust litigation
Loss Contingencies [Line Items]
Loss related to litigation settlement	$ 572.5

Taxes on Income (Details)

Taxes on Income (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	22.60%	11.40%
Tax benefit resulting from acquisition charge	$ 0

Earnings Per Share - Calculatio

Earnings Per Share - Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income attributable to Merck & Co., Inc., basic	$ 2,821,000	$ 4,310,000
Net income attributable to Merck & Co., Inc., diluted	$ 2,821,000	$ 4,310,000
Average common shares outstanding (in shares)	2,538	2,528
Common shares issuable (in shares)	13	9
Average common shares outstanding assuming dilution (in shares)	2,551	2,537
Basic Earnings Per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ 1.11	$ 1.70
Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders (in dollars per share)	$ 1.11	$ 1.70

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Antidilutive shares (in shares)	1	7

Other Comprehensive Income (L_3

Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	$ 46,058	$ 38,257
Other comprehensive income (loss) before reclassification adjustments, pretax	(34)	131
Tax	(4)	(50)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(38)	81
Reclassification adjustments, pretax	(100)	(23)
Tax	23	2
Reclassification adjustments, net of taxes	(77)	(21)
Other comprehensive income (loss), net of taxes	(115)	60
Equity, ending balance	46,905	40,953
Derivatives
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	73	144
Other comprehensive income (loss) before reclassification adjustments, pretax	(66)	148
Tax	14	(31)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(52)	117
Reclassification adjustments, pretax	(102)	(68)
Tax	21	14
Reclassification adjustments, net of taxes	(81)	(54)
Other comprehensive income (loss), net of taxes	(133)	63
Equity, ending balance	(60)	207
Employee Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(2,408)	(2,743)
Other comprehensive income (loss) before reclassification adjustments, pretax	(47)	1
Tax	2	(2)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	(45)	(1)
Reclassification adjustments, pretax	(7)	45
Tax	2	(12)
Reclassification adjustments, net of taxes	(5)	33
Other comprehensive income (loss), net of taxes	(50)	32
Equity, ending balance	(2,458)	(2,711)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(2,433)	(1,830)
Other comprehensive income (loss) before reclassification adjustments, pretax	79	(18)
Tax	(20)	(17)
Other comprehensive income (loss) before reclassification adjustments, net of taxes	59	(35)
Reclassification adjustments, pretax	9	0
Tax	0	0
Reclassification adjustments, net of taxes	9	0
Other comprehensive income (loss), net of taxes	68	(35)
Equity, ending balance	(2,365)	(1,865)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Equity, beginning balance	(4,768)	(4,429)
Equity, ending balance	$ (4,883)	$ (4,369)

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details) $ in Billions	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	2
Sales discounts | $	$ 3.1	$ 2.9

Segment Reporting - Sales from

Segment Reporting - Sales from Products (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Sales	$ 14,487	$ 15,901
Revenue related to the sale of the marketing rights	51	114
Increase (Decrease) In Hedge Revenue	99	69
U.S.
Segment Reporting Information [Line Items]
Sales	6,659	7,339
Int’l
Segment Reporting Information [Line Items]
Sales	7,828	8,563
Operating Segments
Segment Reporting Information [Line Items]
Sales	14,212	15,589
Operating Segments | U.S.
Segment Reporting Information [Line Items]
Sales	6,599	7,246
Operating Segments | Int’l
Segment Reporting Information [Line Items]
Sales	7,614	8,343
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Sales	275	312
Corporate, Non-Segment | U.S.
Segment Reporting Information [Line Items]
Sales	60	93
Corporate, Non-Segment | Int’l
Segment Reporting Information [Line Items]
Sales	214	220
Pharmaceutical | Operating Segments
Segment Reporting Information [Line Items]
Sales	12,721	14,107
Pharmaceutical | Operating Segments | U.S.
Segment Reporting Information [Line Items]
Sales	6,117	6,773
Pharmaceutical | Operating Segments | Int’l
Segment Reporting Information [Line Items]
Sales	6,604	7,334
Pharmaceutical | Operating Segments | Keytruda
Segment Reporting Information [Line Items]
Sales	5,795	4,809
Pharmaceutical | Operating Segments | Keytruda | U.S.
Segment Reporting Information [Line Items]
Sales	3,485	2,779
Pharmaceutical | Operating Segments | Keytruda | Int’l
Segment Reporting Information [Line Items]
Sales	2,310	2,030
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza
Segment Reporting Information [Line Items]
Sales	275	266
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza | U.S.
Segment Reporting Information [Line Items]
Sales	142	141
Pharmaceutical | Operating Segments | Alliance revenue - Lynparza | Int’l
Segment Reporting Information [Line Items]
Sales	133	125
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima
Segment Reporting Information [Line Items]
Sales	232	227
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima | U.S.
Segment Reporting Information [Line Items]
Sales	153	156
Pharmaceutical | Operating Segments | Alliance revenue - Lenvima | Int’l
Segment Reporting Information [Line Items]
Sales	79	71
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl
Segment Reporting Information [Line Items]
Sales	43	52
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl | U.S.
Segment Reporting Information [Line Items]
Sales	30	27
Pharmaceutical | Operating Segments | Alliance Revenue - Reblozyl | Int’l
Segment Reporting Information [Line Items]
Sales	12	25
Pharmaceutical | Operating Segments | Welireg
Segment Reporting Information [Line Items]
Sales	42	18
Pharmaceutical | Operating Segments | Welireg | U.S.
Segment Reporting Information [Line Items]
Sales	41	18
Pharmaceutical | Operating Segments | Welireg | Int’l
Segment Reporting Information [Line Items]
Sales	1	0
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9
Segment Reporting Information [Line Items]
Sales	1,972	1,460
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9 | U.S.
Segment Reporting Information [Line Items]
Sales	416	418
Pharmaceutical | Operating Segments | Gardasil/Gardasil 9 | Int’l
Segment Reporting Information [Line Items]
Sales	1,556	1,042
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax
Segment Reporting Information [Line Items]
Sales	528	470
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax | U.S.
Segment Reporting Information [Line Items]
Sales	421	371
Pharmaceutical | Operating Segments | ProQuad/M-M-R II/Varivax | Int’l
Segment Reporting Information [Line Items]
Sales	107	99
Pharmaceutical | Operating Segments | RotaTeq
Segment Reporting Information [Line Items]
Sales	297	216
Pharmaceutical | Operating Segments | RotaTeq | U.S.
Segment Reporting Information [Line Items]
Sales	180	175
Pharmaceutical | Operating Segments | RotaTeq | Int’l
Segment Reporting Information [Line Items]
Sales	117	41
Pharmaceutical | Operating Segments | Vaxneuvance
Segment Reporting Information [Line Items]
Sales	106	5
Pharmaceutical | Operating Segments | Vaxneuvance | U.S.
Segment Reporting Information [Line Items]
Sales	94	5
Pharmaceutical | Operating Segments | Vaxneuvance | Int’l
Segment Reporting Information [Line Items]
Sales	13	0
Pharmaceutical | Operating Segments | Pneumovax 23
Segment Reporting Information [Line Items]
Sales	96	173
Pharmaceutical | Operating Segments | Pneumovax 23 | U.S.
Segment Reporting Information [Line Items]
Sales	40	118
Pharmaceutical | Operating Segments | Pneumovax 23 | Int’l
Segment Reporting Information [Line Items]
Sales	56	55
Pharmaceutical | Operating Segments | Vaqta
Segment Reporting Information [Line Items]
Sales	40	36
Pharmaceutical | Operating Segments | Vaqta | U.S.
Segment Reporting Information [Line Items]
Sales	30	29
Pharmaceutical | Operating Segments | Vaqta | Int’l
Segment Reporting Information [Line Items]
Sales	10	7
Pharmaceutical | Operating Segments | Bridion
Segment Reporting Information [Line Items]
Sales	487	395
Pharmaceutical | Operating Segments | Bridion | U.S.
Segment Reporting Information [Line Items]
Sales	276	195
Pharmaceutical | Operating Segments | Bridion | Int’l
Segment Reporting Information [Line Items]
Sales	210	199
Pharmaceutical | Operating Segments | Prevymis
Segment Reporting Information [Line Items]
Sales	129	94
Pharmaceutical | Operating Segments | Prevymis | U.S.
Segment Reporting Information [Line Items]
Sales	54	40
Pharmaceutical | Operating Segments | Prevymis | Int’l
Segment Reporting Information [Line Items]
Sales	75	54
Pharmaceutical | Operating Segments | Primaxin
Segment Reporting Information [Line Items]
Sales	80	58
Pharmaceutical | Operating Segments | Primaxin | U.S.
Segment Reporting Information [Line Items]
Sales	4	1
Pharmaceutical | Operating Segments | Primaxin | Int’l
Segment Reporting Information [Line Items]
Sales	76	58
Pharmaceutical | Operating Segments | Dificid
Segment Reporting Information [Line Items]
Sales	65	52
Pharmaceutical | Operating Segments | Dificid | U.S.
Segment Reporting Information [Line Items]
Sales	62	49
Pharmaceutical | Operating Segments | Dificid | Int’l
Segment Reporting Information [Line Items]
Sales	3	3
Pharmaceutical | Operating Segments | Noxafil
Segment Reporting Information [Line Items]
Sales	60	57
Pharmaceutical | Operating Segments | Noxafil | U.S.
Segment Reporting Information [Line Items]
Sales	14	10
Pharmaceutical | Operating Segments | Noxafil | Int’l
Segment Reporting Information [Line Items]
Sales	46	48
Pharmaceutical | Operating Segments | Zerbaxa
Segment Reporting Information [Line Items]
Sales	50	30
Pharmaceutical | Operating Segments | Zerbaxa | U.S.
Segment Reporting Information [Line Items]
Sales	27	18
Pharmaceutical | Operating Segments | Zerbaxa | Int’l
Segment Reporting Information [Line Items]
Sales	23	12
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo
Segment Reporting Information [Line Items]
Sales	99	72
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo | U.S.
Segment Reporting Information [Line Items]
Sales	83	71
Pharmaceutical | Operating Segments | Alliance revenue - Adempas/Verquvo | Int’l
Segment Reporting Information [Line Items]
Sales	16	1
Pharmaceutical | Operating Segments | Adempas
Segment Reporting Information [Line Items]
Sales	59	61
Pharmaceutical | Operating Segments | Adempas | U.S.
Segment Reporting Information [Line Items]
Sales	0	0
Pharmaceutical | Operating Segments | Adempas | Int’l
Segment Reporting Information [Line Items]
Sales	59	61
Pharmaceutical | Operating Segments | Lagevrio
Segment Reporting Information [Line Items]
Sales	392	3,247
Pharmaceutical | Operating Segments | Lagevrio | U.S.
Segment Reporting Information [Line Items]
Sales	(2)	1,523
Pharmaceutical | Operating Segments | Lagevrio | Int’l
Segment Reporting Information [Line Items]
Sales	394	1,723
Pharmaceutical | Operating Segments | Isentress/Isentress HD
Segment Reporting Information [Line Items]
Sales	123	158
Pharmaceutical | Operating Segments | Isentress/Isentress HD | U.S.
Segment Reporting Information [Line Items]
Sales	52	61
Pharmaceutical | Operating Segments | Isentress/Isentress HD | Int’l
Segment Reporting Information [Line Items]
Sales	71	97
Pharmaceutical | Operating Segments | Belsomra
Segment Reporting Information [Line Items]
Sales	56	69
Pharmaceutical | Operating Segments | Belsomra | U.S.
Segment Reporting Information [Line Items]
Sales	16	20
Pharmaceutical | Operating Segments | Belsomra | Int’l
Segment Reporting Information [Line Items]
Sales	40	48
Pharmaceutical | Operating Segments | Simponi
Segment Reporting Information [Line Items]
Sales	180	186
Pharmaceutical | Operating Segments | Simponi | U.S.
Segment Reporting Information [Line Items]
Sales	0	0
Pharmaceutical | Operating Segments | Simponi | Int’l
Segment Reporting Information [Line Items]
Sales	180	186
Pharmaceutical | Operating Segments | Remicade
Segment Reporting Information [Line Items]
Sales	51	61
Pharmaceutical | Operating Segments | Remicade | U.S.
Segment Reporting Information [Line Items]
Sales	0	0
Pharmaceutical | Operating Segments | Remicade | Int’l
Segment Reporting Information [Line Items]
Sales	51	61
Pharmaceutical | Operating Segments | Januvia
Segment Reporting Information [Line Items]
Sales	551	779
Pharmaceutical | Operating Segments | Januvia | U.S.
Segment Reporting Information [Line Items]
Sales	271	325
Pharmaceutical | Operating Segments | Januvia | Int’l
Segment Reporting Information [Line Items]
Sales	280	454
Pharmaceutical | Operating Segments | Janumet
Segment Reporting Information [Line Items]
Sales	329	454
Pharmaceutical | Operating Segments | Janumet | U.S.
Segment Reporting Information [Line Items]
Sales	56	63
Pharmaceutical | Operating Segments | Janumet | Int’l
Segment Reporting Information [Line Items]
Sales	272	391
Pharmaceutical | Operating Segments | Other pharmaceutical
Segment Reporting Information [Line Items]
Sales	584	602
Pharmaceutical | Operating Segments | Other pharmaceutical | U.S.
Segment Reporting Information [Line Items]
Sales	172	160
Pharmaceutical | Operating Segments | Other pharmaceutical | Int’l
Segment Reporting Information [Line Items]
Sales	414	443
Animal Health | Operating Segments
Segment Reporting Information [Line Items]
Sales	1,491	1,482
Animal Health | Operating Segments | U.S.
Segment Reporting Information [Line Items]
Sales	482	473
Animal Health | Operating Segments | Int’l
Segment Reporting Information [Line Items]
Sales	1,010	1,009
Animal Health | Operating Segments | Livestock
Segment Reporting Information [Line Items]
Sales	849	832
Animal Health | Operating Segments | Livestock | U.S.
Segment Reporting Information [Line Items]
Sales	174	171
Animal Health | Operating Segments | Livestock | Int’l
Segment Reporting Information [Line Items]
Sales	676	661
Animal Health | Operating Segments | Companion Animals
Segment Reporting Information [Line Items]
Sales	642	650
Animal Health | Operating Segments | Companion Animals | U.S.
Segment Reporting Information [Line Items]
Sales	308	302
Animal Health | Operating Segments | Companion Animals | Int’l
Segment Reporting Information [Line Items]
Sales	$ 334	$ 348

Segment Reporting - Consolidate

Segment Reporting - Consolidated Sales by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Sales	$ 14,487	$ 15,901
United States
Revenue from External Customer [Line Items]
Sales	6,659	7,339
Europe, Middle East and Africa
Revenue from External Customer [Line Items]
Sales	3,303	4,359
China
Revenue from External Customer [Line Items]
Sales	1,715	1,143
Asia Pacific (other than China and Japan)
Revenue from External Customer [Line Items]
Sales	846	930
Japan
Revenue from External Customer [Line Items]
Sales	758	989
Latin America
Revenue from External Customer [Line Items]
Sales	661	607
Other
Revenue from External Customer [Line Items]
Sales	$ 545	$ 534

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Segment Profits to Income before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Profits	$ 3,650,000	$ 4,861,000
Interest income	112,000	7,000
Interest expense	(242,000)	(243,000)
Amortization	(543,000)	(699,000)
Depreciation	(448,000)	(421,000)
Research and development	(4,276,000)	(2,576,000)
Restructuring costs	(67,000)	(53,000)
Operating Segments
Segment Reporting Information [Line Items]
Profits	9,706,000	10,086,000
Operating Segments | Pharmaceutical segment
Segment Reporting Information [Line Items]
Profits	9,140,000	9,501,000
Operating Segments | Animal Health segment
Segment Reporting Information [Line Items]
Profits	566,000	585,000
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Profits	164,000	194,000
Segment Reconciling Items
Segment Reporting Information [Line Items]
Interest income	112,000	7,000
Interest expense	(242,000)	(243,000)
Amortization	(543,000)	(699,000)
Depreciation	(398,000)	(378,000)
Research and development	(4,147,000)	(2,446,000)
Restructuring costs	(67,000)	(53,000)
Charge for Zetia antitrust litigation settlements	(573,000)	0
Other unallocated, net	$ (362,000)	$ (1,607,000)