MERCK & CO., INC., 10-Q filed on 8/9/2021
Quarterly Report
v3.21.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2021
Jul. 31, 2021
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2021  
Document Transition Report false  
Entity File Number 1-6571  
Entity Registrant Name Merck & Co., Inc.  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 22-1918501  
Entity Address, Address Line One 2000 Galloping Hill Road  
Entity Address, City or Town Kenilworth  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07033  
City Area Code (908)  
Local Phone Number 740-4000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,531,374,696
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000310158  
Current Fiscal Year End Date --12-31  
   Common Stock    
Entity Information [Line Items]    
Title of 12(b) Security Common Stock ($0.50 par value)  
Trading Symbol MRK  
Security Exchange Name NYSE  
1.125% Notes due 2021    
Entity Information [Line Items]    
Title of 12(b) Security 1.125% Notes due 2021  
Trading Symbol MRK/21  
Security Exchange Name NYSE  
0.500% Notes due 2024    
Entity Information [Line Items]    
Title of 12(b) Security 0.500% Notes due 2024  
Trading Symbol MRK 24  
Security Exchange Name NYSE  
1.875% Notes due 2026    
Entity Information [Line Items]    
Title of 12(b) Security 1.875% Notes due 2026  
Trading Symbol MRK/26  
Security Exchange Name NYSE  
2.500% Notes due 2034    
Entity Information [Line Items]    
Title of 12(b) Security 2.500% Notes due 2034  
Trading Symbol MRK/34  
Security Exchange Name NYSE  
1.375% Notes due 2036    
Entity Information [Line Items]    
Title of 12(b) Security 1.375% Notes due 2036  
Trading Symbol MRK 36A  
Security Exchange Name NYSE  
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Statement [Abstract]        
Sales $ 11,402 $ 9,353 $ 22,029 $ 19,641
Costs, Expenses and Other        
Cost of sales 3,104 2,747 6,303 5,576
Selling, general and administrative 2,281 2,085 4,468 4,276
Research and development 4,321 2,085 6,732 4,260
Restructuring costs 82 82 380 152
Other (income) expense, net (103) (387) (558) (325)
Total Costs, Expenses and Other 9,685 6,612 17,325 13,939
Income from Continuing Operations Before Taxes 1,717 2,741 4,704 5,702
Taxes on Income from Continuing Operations 503 396 741 891
Net Income from Continuing Operations 1,214 2,345 3,963 4,811
Less: Net Income (Loss) Attributable to Noncontrolling Interests 1 4 5 (1)
Net Income from Continuing Operations Attributable to Merck & Co., Inc. 1,213 2,341 3,958 4,812
Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests 332 661 766 1,409
Net Income Attributable to Merck & Co. Inc. $ 1,545 $ 3,002 $ 4,724 $ 6,221
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders:        
Income from Continuing Operations $ 0.48 $ 0.93 $ 1.56 $ 1.90
Income from Discontinued Operations 0.13 0.26 0.30 0.56
Net Income 0.61 1.19 1.87 2.46
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders:        
Income from Continuing Operations 0.48 0.92 1.56 1.89
Income from Discontinued Operations 0.13 0.26 0.30 0.55
Net Income $ 0.61 $ 1.18 $ 1.86 $ 2.45
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net Income Attributable to Merck & Co., Inc. $ 1,545 $ 3,002 $ 4,724 $ 6,221
Other Comprehensive Income (Loss) Net of Taxes:        
Net unrealized gain (loss) on derivatives, net of reclassifications 10 (120) 240 (16)
Net unrealized loss on investments, net of reclassifications 0 0 0 (18)
Benefit plan net gain and prior service credit, net of amortization 1,403 39 1,484 99
Cumulative translation adjustment 132 79 (167) (265)
Other comprehensive income (loss), net of taxes 1,545 (2) 1,557 (200)
Comprehensive Income Attributable to Merck & Co., Inc. $ 3,090 $ 3,000 $ 6,281 $ 6,021
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 8,575 $ 8,050
Accounts receivable (net of allowance for doubtful accounts of $72 in 2021 and $67 in 2020) 7,843 6,803
Inventories (excludes inventories of $2,412 in 2021 and $2,070 in 2020 classified in Other assets - see Note 7) 5,499 5,554
Other current assets 6,748 4,674
Current assets of discontinued operations 0 2,683
Total current assets 28,665 27,764
Investments 411 785
Property, Plant and Equipment, at cost, net of accumulated depreciation of $18,236 in 2021 and $18,162 in 2020 18,064 17,000
Goodwill 18,873 18,882
Other Intangibles, Net 13,622 14,101
Other Assets 11,053 9,881
Noncurrent Assets of Discontinued Operations 0 3,175
Total Assets 90,688 91,588
Current Liabilities    
Loans payable and current portion of long-term debt 2,488 6,431
Trade accounts payable 3,897 4,327
Accrued and other current liabilities 12,888 12,212
Income taxes payable 971 1,597
Dividends payable 1,662 1,674
Current liabilities of discontinued operations 0 1,086
Total current liabilities 21,906 27,327
Long-Term Debt 24,033 25,360
Deferred Income Taxes 1,489 1,005
Other Noncurrent Liabilities 9,872 12,306
Noncurrent Liabilities of Discontinued Operations 0 186
Merck & Co., Inc. Stockholders’ Equity    
Common stock, $0.50 par value Authorized - 6,500,000,000 shares Issued - 3,577,103,522 shares in 2021 and 2020 1,788 1,788
Other paid-in capital 44,039 39,588
Retained earnings 48,777 47,362
Accumulated other comprehensive loss (4,628) (6,634)
Stockholders' equity before deduction for treasury stock 89,976 82,104
Less treasury stock, at cost: 1,044,351,147 shares in 2021 and 1,046,877,695 shares in 2020 56,682 56,787
Total Merck & Co., Inc. stockholders’ equity 33,294 25,317
Noncontrolling Interests 94 87
Total equity 33,388 25,404
Liabilities and Equity $ 90,688 $ 91,588
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 72 $ 67
Inventories classified in Other assets 2,412 2,070
Accumulated depreciation $ 18,236 $ 18,162
Common stock, par value (in dollars per share) $ 0.50 $ 0.50
Common stock, shares authorized (shares) 6,500,000,000 6,500,000,000
Common stock, shares issued (in shares) 3,577,103,522 3,577,103,522
Treasury Stock, Shares 1,044,351,147 1,046,877,695
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash Flows from Operating Activities    
Net income from continuing operations $ 3,963 $ 4,811
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:    
Amortization 871 988
Depreciation 749 808
Intangible asset impairment charges 0 20
Charge for the acquisition of Pandion Therapeutics, Inc. 1,556 0
Deferred income taxes 29 101
Share-based compensation 243 213
Other (526) (204)
Net changes in assets and liabilities (3,655) (4,112)
Net Cash Provided by Operating Activities from Continuing Operations 3,230 2,625
Cash Flows from Investing Activities    
Capital expenditures (2,068) (1,553)
Purchases of securities and other investments (1) (77)
Proceeds from sales of securities and other investments 386 1,892
Acquisition of Pandion Therapeutics, Inc. net of cash acquired (1,554) 0
Acquisition of ArQule, Inc., net of cash acquired 0 (2,545)
Other acquisitions, net of cash acquired (90) (321)
Other 16 194
Net Cash Used in Investing Activities from Continuing Operations (3,311) (2,410)
Cash Flows from Financing Activities    
Net change in short-term borrowings (3,983) 1,967
Payments on debt (1,153) (1,952)
Distribution from Organon & Co. 9,000 0
Proceeds from issuance of debt 0 4,445
Purchases of treasury stock (239) (1,281)
Dividends paid to stockholders (3,318) (3,128)
Proceeds from exercise of stock options 51 40
Other (194) (444)
Net Cash Provided by (Used in) Financing Activities from Continuing Operations 164 (353)
Discontinued Operations    
Net cash provided by operating activities 1,051 1,449
Net cash used in investing activities (134) (100)
Net cash used in financing activities (504) 0
Net Cash Flows Provided by Discontinued Operations 413 1,349
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (19) 2
Net Increase in Cash, Cash Equivalents and Restricted Cash 477 1,213
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes restricted cash of $103 at January 1, 2021 included in Other Assets) 8,153 9,934
Cash, Cash Equivalents and Restricted Cash at End of Period (includes restricted cash of $55 at June 30, 2021 included in Other Assets) $ 8,630 $ 11,147
v3.21.2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Statement of Cash Flows [Abstract]    
Restricted cash $ 55 $ 103
v3.21.2
Basis of Presentation
 6 Months Ended
Jun. 30, 2021
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 25, 2021.
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.
Spin-Off of Organon & Co.
On June 2, 2021, Merck completed the spin-off of products from its women’s health, biosimilars and established brands businesses into a new, independent, publicly traded company named Organon & Co. (Organon) through a distribution of Organon’s publicly traded stock to Company shareholders. The established brands included in the transaction consisted of dermatology, non-opioid pain management, respiratory, select cardiovascular products, as well as the rest of Merck’s diversified brands franchise. Merck’s existing research pipeline programs will continue to be owned and developed within Merck as planned. The historical results of the women’s health, biosimilars and established brands businesses that were contributed to Organon in the spin-off have been reflected as discontinued operations in the Company’s consolidated financial statements through the date of the spin-off (see Note 2).
Recently Adopted Accounting Standards
In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intraperiod tax allocations and deferred tax liabilities, clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination, and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective January 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.
In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective January 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.
Recently Issued Accounting Standard Not Yet Adopted
In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.
v3.21.2
Spin-Off of Organon & Co.
Jun. 02, 2021
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, each Merck shareholder received one tenth of a share of Organon’s common stock for each share of Merck common stock held by such shareholder. The distribution is expected to qualify as tax free to Merck and its shareholders for U.S. federal income tax purposes. Indebtedness of $9.5 billion principal amount, consisting of term loans and senior notes, was issued in 2021 in connection with the spin-off and assumed by Organon. Merck is no longer the obligor of any Organon debt or financing arrangements. Cash proceeds of $9.0 billion were distributed by Organon to Merck in connection with the spin-off.
Also 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 will provide Organon various services and,
similarly, Organon will provide Merck various services. The provision of services under the TSA agreement generally will terminate within 25 months following the spin-off. 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 will continue 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 will continue 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 will (a) manufacture and supply certain active pharmaceutical ingredients for Organon, (b) toll manufacture and supply certain formulated pharmaceutical products for Organon, and (c) package and label certain finished pharmaceutical products for Organon. Similarly, Organon and Merck entered into a number of MSAs pursuant to which Organon will (a) manufacture and supply certain formulated pharmaceutical products for Merck, and (b) package and label certain finished pharmaceutical products for Merck. The terms of the MSAs range in initial duration from four years to ten years.
Amounts included in the condensed consolidated statement of income for the above agreements were immaterial in the second quarter of 2021. The amount due from Organon under the above agreements was $1.6 billion at June 30, 2021 and is reflected in Other current assets. The amount due to Organon under these agreements was $1.0 billion at June 30, 2021 and is included in Accrued and other current liabilities.
The results of the women’s health, biosimilars and established brands businesses (previously included in the Pharmaceutical segment) that were contributed to Organon in the spin-off, as well as interest expense related to the debt issuance in 2021, have been reflected as discontinued operations in the Company’s condensed consolidated statement of income as Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests through June 2, 2021, the date of the spin-off. Prior periods have been recast to reflect this presentation. As a result of the spin-off of Organon, Merck incurred separation costs of $307 million and $556 million in the three and six months ended June 30, 2021, respectively, and $120 million and $290 million in the three and six months ended June 30, 2020, respectively, which are also included in Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests. These costs primarily relate to professional fees for separation activities within finance, tax, legal and information technology system functions, as well as investment banking fees. As of December 31, 2020, the assets and liabilities associated with these businesses are classified as assets and liabilities of discontinued operations in the condensed consolidated balance sheet.
Details of Income from discontinued operations, net of taxes and amounts attributable to noncontrolling interests are as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)
2021 (1)
2020
2021 (1)
2020
Sales$1,059 $1,519 $2,512 $3,288 
Costs, Expenses and Other
Cost of sales318 412 789 895 
Selling, general and administrative431 293 877 657 
Research and development50 38 103 72 
Restructuring costs— 1 1 3 
Other (income) expense, net(23)(4)(15)4 
776 740 1,755 1,631 
Income from discontinued operations before taxes283 779 757 1,657 
Tax (benefit) provision(49)114 (12)239 
Income from discontinued operations, net of taxes332 665 769 1,418 
Less: Income of discontinued operations attributable to noncontrolling interests— 4 3 9 
Income from discontinued operations, net of taxes and amounts attributable to noncontrolling interests$332 $661 $766 $1,409 
(1) Reflects amounts through the June 2, 2021 spin-off date.
Details of assets and liabilities of discontinued operations are as follows: 
($ in millions)December 31, 2020
Cash and cash equivalents$12 
Accounts receivable, less allowance for doubtful accounts1,048 
Inventories756 
Other current assets867 
Current assets of discontinued operations$2,683 
Property, plant and equipment, net$986 
Goodwill1,356 
Other intangibles, net503 
Other assets330 
Noncurrent Assets of Discontinued Operations$3,175 
Trade accounts payable$267 
Accrued and other current liabilities841 
Income taxes payable(22)
Total current liabilities of discontinued operations$1,086 
Deferred income taxes$10 
Other noncurrent liabilities176 
Noncurrent Liabilities of Discontinued Operations$186 
As a result of the spin-off of Organon, Merck distributed net liabilities of $5.1 billion as of June 2, 2021 consisting of debt of $9.4 billion (described above), goodwill of $1.4 billion, property, plant and equipment of $981 million, cash of $929 million, inventory of $815 million, other intangibles, net, of $519 million and other net liabilities of $328 million. The spin-off also resulted in a net decrease to Accumulated other comprehensive loss of $449 million consisting of $421 million for the derecognition of net losses on foreign currency translation adjustments and $28 million associated with employee benefit plans. The distribution of the net liabilities and reduction to Accumulated other comprehensive loss resulted in a net $4.6 billion increase to Other paid-in capital.
The Company has share-based compensation plans under which the Company grants restricted stock units (RSUs) and performance share units (PSUs) to certain management level employees. In addition, employees and non-employee directors were granted options to purchase shares of Company common stock at the fair market value at the time of grant. In connection with the spin-off of Organon, all outstanding Merck stock options, RSUs and PSUs (whether vested or unvested) were converted into adjusted Merck awards for current and former Merck employees or Organon awards for Organon employees. Such adjusted awards preserved the same intrinsic value and general terms and conditions (including vesting) as were in place immediately prior to the adjustments. Approximately 1.3 million RSUs, 1.9 million stock options and 248 thousand PSUs were converted from Merck awards into Organon awards.
Expenses for curtailments, settlements and termination benefits provided to certain employees were incurred in connection with the spin-off. Additionally, the transfer of employees to Organon triggered remeasurements of some of the Company’s pension plans (see Note 11).
v3.21.2
Acquisitions, Research Collaborations and License Agreements
 6 Months Ended
Jun. 30, 2021
Business Combinations [Abstract]  
Acquisitions, Research Collaborations and License Agreements Acquisitions, Research Collaborations and License Agreements
The Company continues to pursue acquisitions and the establishment of external alliances such as research collaborations and licensing agreements to complement its internal research capabilities. These arrangements often include upfront payments, as well as expense reimbursements or payments to the third party, and milestone, royalty or profit share arrangements, contingent upon the occurrence of certain future events linked to the success of the asset in development. The Company also reviews its marketed products and pipeline to examine candidates which may provide more value through out-licensing and, as part of its portfolio assessment process, may also divest certain assets. Pro forma financial information for acquired businesses is not presented if the historical financial results of the acquired entity are not significant when compared with the Company’s financial results.
In April 2021, Merck acquired Pandion Therapeutics, Inc. (Pandion), a clinical-stage biotechnology company developing novel therapeutics designed to address the unmet needs of patients living with autoimmune diseases. Pandion is
advancing a pipeline of precision immune modulators targeting critical immune control nodes. Total consideration paid of $1.9 billion included $147 million of transaction costs primarily comprised of share-based compensation payments to settle equity awards. The transaction was accounted for as an acquisition of an asset. Merck recorded net assets of $156 million (primarily cash) and Research and development expenses of $1.7 billion in the second quarter and first six months of 2021 related to the transaction. There are no future contingent payments associated with the acquisition.
In March 2021, Merck and Gilead Sciences, Inc. (Gilead) entered into an agreement to jointly develop and commercialize long-acting treatments in HIV that combine Merck’s investigational nucleoside reverse transcriptase translocation inhibitor, islatravir, and Gilead’s investigational capsid inhibitor, lenacapavir. The collaboration will initially focus on long-acting oral formulations and long-acting injectable formulations of these combination products, with other formulations potentially added to the collaboration as mutually agreed. There was no upfront payment made by either party upon entering into the agreement.
Under the terms of the agreement, Gilead and Merck will share operational responsibilities, as well as development, commercialization and marketing costs, and any future revenues. Global development and commercialization costs will be shared 60% Gilead and 40% Merck across the oral and injectable formulation programs. For long-acting oral products, Gilead will lead commercialization in the U.S. and Merck will lead commercialization in the EU and the rest of the world. For long-acting injectable products, Merck will lead commercialization in the U.S. and Gilead will lead commercialization in the EU and the rest of the world. Gilead and Merck will co-promote in the U.S. and certain other major markets. Merck and Gilead will share global product revenues equally until product revenues surpass certain pre-agreed per formulation revenue tiers. Upon passing $2.0 billion a year in net product sales for the oral combination, the revenue split will adjust to 65% Gilead and 35% Merck for any revenues above the threshold. Upon passing $3.5 billion a year in net product sales for the injectable combination, the revenue split will adjust to 65% Gilead and 35% Merck for any revenues above the threshold.
Beyond the potential combinations of investigational lenacapavir and investigational islatravir, Gilead will have the option to license certain of Merck’s investigational oral integrase inhibitors to develop in combination with lenacapavir. Reciprocally, Merck will have the option to license certain of Gilead’s investigational oral integrase inhibitors to develop in combination with islatravir. Each company may exercise its option for an investigational oral integrase inhibitor of the other company following completion of the first Phase 1 clinical trial of that integrase inhibitor. Upon exercise of an option, the companies will split development costs and revenues, unless the non-exercising company decides to opt-out.
In January 2021, Merck entered into an exclusive license and research collaboration agreement with Artiva Biotherapeutics, Inc. (Artiva) to discover, develop and manufacture CAR-NK cells that target certain solid tumors using Artiva’s proprietary platform. Merck and Artiva agreed to engage in up to three different research programs, each covering a collaboration target. Merck has sole responsibility for all development and commercialization activities (including regulatory filing and approval). Under the terms of the agreement, Merck made an upfront payment of $30 million, which was included in Research and development expenses in the first six months of 2021, for license and other rights for the first two collaboration targets and agreed to make another upfront payment of $15 million for license and other rights for the third collaboration target when it is selected by Merck and accepted by Artiva. In addition, Artiva is eligible to receive future contingent milestone payments (which span all three collaboration targets), aggregating up to: $217.5 million in developmental milestones, $570 million in regulatory milestones, and $1.05 billion in sales-based milestones. The agreement also provides for Merck to pay tiered royalties ranging from 7% to 14% on future sales.
In December 2020, Merck acquired OncoImmune, a privately held, clinical-stage biopharmaceutical company, for an upfront payment of $423 million. OncoImmune’s lead therapeutic candidate MK-7110 (formerly known as CD24Fc) was being evaluated for the treatment of patients hospitalized with coronavirus disease 2019 (COVID-19). The transaction was accounted for as an acquisition of an asset. Under the agreement, prior to the completion of the acquisition, OncoImmune spun-out certain rights and assets unrelated to the MK-7110 program to a new entity owned by the existing shareholders of OncoImmune. In connection with the closing of the acquisition, Merck invested $50 million for a 20% ownership interest in the new entity, which was valued at $33 million resulting in a $17 million premium. Merck also recognized other net liabilities of $22 million. The Company recorded Research and development expenses of $462 million in 2020 related to this transaction. In 2021, Merck received feedback from the U.S. Food and Drug Administration (FDA) that additional data would be needed to support a potential Emergency Use Authorization application and therefore the Company did not expect MK-7110 would become available until the first half of 2022. Given this timeline and the technical, clinical and regulatory uncertainties, the availability of a number of medicines for patients hospitalized with COVID-19, and the need to concentrate Merck’s resources on accelerating the development and manufacture of the most viable therapeutics and vaccines, Merck decided to discontinue development of MK-7110 for the treatment of COVID-19. Due to the discontinuation, the Company recorded charges of $37 million and $207 million in the second quarter and first six months of 2021, respectively, which are reflected in Cost of sales and relate to fixed-asset and materials write-offs, as well as the recognition of liabilities for purchase commitments.
In June 2020, Merck acquired privately held Themis Bioscience GmbH (Themis), a company focused on vaccines (including a COVID-19 vaccine candidate, V591) and immune-modulation therapies for infectious diseases and cancer for $366
million. The acquisition originally provided for Merck to make additional contingent payments of up to $740 million. The transaction was accounted for as an acquisition of a business. The Company determined the fair value of the contingent consideration was $85 million at the acquisition date utilizing a probability-weighted estimated cash flow stream using an appropriate discount rate dependent on the nature and timing of the milestone payments. Merck recognized intangible assets for in-process research and development (IPR&D) of $113 million, cash of $59 million, deferred tax assets of $72 million and other net liabilities of $32 million. The excess of the consideration transferred over the fair value of net assets acquired of $239 million was recorded as goodwill that was allocated to the Pharmaceutical segment and is not deductible for tax purposes. The fair values of the identifiable intangible assets related to IPR&D were determined using an income approach. Actual cash flows are likely to be different than those assumed. In January 2021, the Company announced it was discontinuing development of V591. As a result, in 2020, the Company recorded an IPR&D impairment charge of $90 million within Research and development expenses. The Company also recorded a reduction in Research and development expenses resulting from a decrease in the related liability for contingent consideration of $45 million since future contingent milestone payments have been reduced to $450 million in the aggregate, including up to $60 million for development milestones, up to $196 million for regulatory approval milestones, and up to $194 million for commercial milestones.
In January 2020, Merck acquired ArQule, Inc. (ArQule), a publicly traded biopharmaceutical company focused on kinase inhibitor discovery and development for the treatment of patients with cancer and other diseases. Total consideration paid of $2.7 billion included $138 million of share-based compensation payments to settle equity awards attributable to precombination service and cash paid for transaction costs on behalf of ArQule. The Company incurred $95 million of transaction costs directly related to the acquisition of ArQule, consisting almost entirely of share-based compensation payments to settle non-vested equity awards attributable to postcombination service. These costs were included in Selling, general and administrative expenses in the first six months of 2020. ArQule’s lead investigational candidate, MK-1026 (formerly known as ARQ 531), is a novel, oral Bruton’s tyrosine kinase (BTK) inhibitor currently being evaluated for the treatment of B-cell malignancies. The transaction was accounted for as an acquisition of a business.
The estimated fair value of assets acquired and liabilities assumed from ArQule is as follows:
($ in millions)January 16, 2020
Cash and cash equivalents$145 
IPR&D MK-1026 (formerly ARQ 531) (1)
2,280 
Licensing arrangement for ARQ 08780 
Deferred income tax liabilities(361)
Other assets and liabilities, net34 
Total identifiable net assets2,178 
Goodwill (2)
512 
Consideration transferred$2,690 
(1) The estimated fair value of the identifiable intangible asset related to IPR&D was determined using an income approach. The future net cash flows were discounted to present value utilizing a discount rate of 12.5%. Actual cash flows are likely to be different than those assumed.
(2) The goodwill was allocated to the Pharmaceutical segment and is not deductible for tax purposes.
v3.21.2
Collaborative Arrangements
 6 Months Ended
Jun. 30, 2021
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. For further details refer to Note 4 to the consolidated financial statements included in Merck’s 2020 Form 10‑K.
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 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 additional contingent payments from Merck to AstraZeneca related to the successful achievement of sales-based and regulatory milestones. As of June 30, 2021, sales-based milestone payments accrued but not yet paid totaled $400 million. Potential future sales-based milestone payments of $2.7 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. Additionally, potential future regulatory milestone payments of $1.4 billion remain under the agreement.
The intangible asset balance related to Lynparza (which includes capitalized sales-based and regulatory milestone payments) was $1.2 billion at June 30, 2021 and is included in Other Intangibles, Net. The amount is being amortized over its estimated useful life through 2028 as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Lynparza$248 $178 $475 $323 
Alliance revenue - Koselugo8 — 14 — 
Total alliance revenue$256 $178 $489 $323 
Cost of sales (1)
42 137 84 164 
Selling, general and administrative43 39 83 72 
Research and development31 37 60 73 
($ in millions)June 30, 2021December 31, 2020
Receivables from AstraZeneca included in Other current assets
$258 $215 
Payables to AstraZeneca included in Accrued and other current liabilities (2)
418 423 
(1) Represents amortization of capitalized milestone payments.
(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 options rights (of which the final $125 million option payment was made in March 2021). In addition, the agreement provides for additional contingent payments from Merck to Eisai related to the successful achievement of sales-based and regulatory milestones. Merck made sales-based milestone payments of $200 million to Eisai in the first six months of 2021. As of June 30, 2021, sales-based milestone payments accrued but not yet paid totaled $600 million. Potential future sales-based milestone payments of $2.6 billion have not yet been accrued as they are not deemed by the Company to be probable at this time. Additionally, potential future regulatory milestone payments of $125 million remain under the agreement.
The intangible asset balance related to Lenvima (which includes capitalized sales-based and regulatory milestone payments) was $1.0 billion at June 30, 2021 and is included in Other Intangibles, Net. The amount is being amortized over its estimated useful life through 2026 as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Lenvima$181 $151 $310 $279 
Cost of sales (1)
47 135 94 170 
Selling, general and administrative31 19 54 31 
Research and development57 56 121 120 
($ in millions)June 30, 2021December 31, 2020
Receivables from Eisai included in Other current assets
$212 $157 
Payables to Eisai included in Accrued and other current liabilities (2)
600 335 
Payables to Eisai included in Other Noncurrent Liabilities (3)
— 600 
(1) Represents amortization of capitalized milestone payments.
(2) Includes accrued milestone and future option payments.
(3) Includes accrued milestone payments.
Bayer AG
In 2014, the Company entered into a worldwide clinical development collaboration with Bayer AG (Bayer) to market and develop soluble guanylate cyclase (sGC) modulators including Bayer’s Adempas (riociguat). The two companies have implemented a joint development and commercialization strategy. The collaboration also includes clinical development of Bayer’s Verquvo (vericiguat), which was approved in the U.S. in January 2021, in Japan in June 2021 and in the EU in July 2021. 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 in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs. In addition, the agreement provides for contingent payments from Merck to Bayer related to the successful achievement of sales-based milestones.
In the first quarter of 2021, following the approval of Verquvo noted above, Merck determined it was probable that sales of Adempas and Verquvo in the future would trigger the remaining $400 million sales-based milestone payment that was outstanding under this agreement. Accordingly, Merck recorded a liability of $400 million and a corresponding increase to the intangible assets related to this collaboration. Merck also recognized $153 million of cumulative amortization expense related to the recognition of this milestone in the first six months of 2021.
The intangible asset balance related to Adempas (which includes the acquired intangible asset balance, as well as capitalized sales-based milestone payments attributed to Adempas) was $920 million at June 30, 2021 and is being amortized over its estimated useful life through 2027 as supported by projected future cash flows, subject to impairment testing. The intangible asset balance related to Verquvo (which reflects the portion of the final sales-based milestone payment that was attributed to Verquvo) was $75 million at June 30, 2021 and is being amortized over its estimated useful life through 2031 as supported by projected future cash flows, subject to impairment testing.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Adempas/Verquvo$74 $79 $149 $133 
Net sales of Adempas recorded by Merck74 57 129 113 
Net sales of Verquvo recorded by Merck1 — 1 — 
Total sales$149 $136 $279 $246 
Cost of sales (1)
39 28 229 57 
Selling, general and administrative32 17 58 28 
Research and development13 16 20 41 
($ in millions)June 30, 2021December 31, 2020
Receivables from Bayer included in Other current assets
$65 $65 
Payables to Bayer included in Other Noncurrent Liabilities (2)
400 — 
(1) Includes amortization of intangible assets. Amount in the first six months of 2021 includes $153 million of cumulative amortization as noted above.
(2) Represents accrued milestone payment.
v3.21.2
Restructuring
 6 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In 2019, Merck approved a new global restructuring program (Restructuring Program) as part of a worldwide initiative focused on further optimizing the Company’s manufacturing and supply network, as well as reducing its global real estate footprint. This program is a continuation of the Company’s plant rationalization, builds on prior restructuring programs and does not include any actions associated with the spin-off of Organon. As the Company continues to evaluate its global footprint and overall operating model, it subsequently identified additional actions under the Restructuring Program, and could identify further actions over time. The actions currently 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 $3.0 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 $128 million and $149 million in the second quarter of 2021 and 2020, respectively, and $462 million and $315 million for the first six months of 2021 and 2020, respectively, related to restructuring program activities. Since inception of the Restructuring Program through June 30, 2021, Merck has recorded total pretax accumulated costs of approximately $2.3 billion. For the full year of 2021, the Company expects to record charges of approximately $700 million related to the Restructuring Program. For segment reporting, restructuring charges are unallocated expenses.
The following tables summarize the charges related to restructuring program activities by type of cost:
 Three Months Ended June 30, 2021Six Months Ended June 30, 2021
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotalSeparation
Costs		Accelerated
Depreciation		OtherTotal
Cost of sales$— $11 $27 $38 $— $21 $44 $65 
Selling, general and administrative— 2 — 2 — 4 — 4 
Research and development— 6 — 6 — 13 — 13 
Restructuring costs64 — 18 82 293 — 87 380 
$64 $19 $45 $128 $293 $38 $131 $462 
 Three Months Ended June 30, 2020Six Months Ended June 30, 2020
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotalSeparation
Costs		Accelerated
Depreciation		OtherTotal
Cost of sales$— $31 $(6)$25 $— $56 $37 $93 
Selling, general and administrative— 11 — 11 — 22 — 22 
Research and development— 31 — 31 — 48 — 48 
Restructuring costs35 — 47 82 82 — 70 152 
$35 $73 $41 $149 $82 $126 $107 $315 
Separation costs are associated with actual headcount reductions, as well as those headcount reductions which were probable and could be reasonably estimated.
Accelerated depreciation costs primarily relate to manufacturing, research and administrative facilities and equipment to be sold or closed as part of the programs. Accelerated depreciation costs represent the difference between the depreciation expense to be recognized over the revised useful life of the asset, based upon the anticipated date the site will be closed or divested or the equipment disposed of, and depreciation expense as determined utilizing the useful life prior to the restructuring actions. All the sites have and will continue to operate up through the respective closure dates and, since future undiscounted cash flows are sufficient to recover the respective book values, Merck is recording accelerated depreciation over the revised useful life of the site assets. Anticipated site closure dates, particularly related to manufacturing locations, have been and may continue to be adjusted to reflect changes resulting from regulatory or other factors.
Other activity in 2021 and 2020 includes asset abandonment, facility shut-down and other related costs, as well as pretax gains and losses resulting from the sales of facilities and related assets. Additionally, other activity includes certain employee-related costs associated with pension and other postretirement benefit plans (see Note 11) and share-based compensation.
The following table summarizes the charges and spending relating to restructuring program activities for the six months ended June 30, 2021:
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotal
Restructuring reserves January 1, 2021
$567 $— $19 $586 
Expense293 38 131 462 
(Payments) receipts, net(230)— (157)(387)
Non-cash activity— (38)48 10 
Restructuring reserves June 30, 2021 (1)
$630 $— $41 $671 
(1)The remaining cash outlays are expected to be substantially completed by the end of 2023.
v3.21.2
Financial Instruments
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
Derivative Instruments and Hedging Activities
The Company manages the impact of foreign exchange rate movements and interest rate movements on its earnings, cash flows and fair values of assets and liabilities through operational means and through the use of various financial instruments, including derivative instruments.
A significant portion of the Company’s revenues and earnings in foreign affiliates is exposed to changes in foreign exchange rates. The objectives and accounting related to the Company’s foreign currency risk management program, as well as its interest rate risk management activities are discussed below.
Foreign Currency Risk Management
The Company has established revenue hedging, balance sheet risk management and net investment hedging programs to protect against volatility of future foreign currency cash flows and changes in fair value caused by 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 income (AOCI) and reclassified into Sales when the hedged anticipated revenue is recognized. For those derivatives which are not designated as cash flow hedges, but serve as economic hedges of forecasted sales, unrealized gains or losses are recorded in Sales each period. The
cash flows from both designated and non-designated contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows. The Company does not enter into derivatives for trading or speculative purposes.
The Company manages operating activities and net asset positions at each local subsidiary in order to mitigate the effects of exchange on monetary assets and liabilities. The Company also uses a balance sheet risk management program to mitigate the exposure of net monetary assets that are denominated in a currency other than a subsidiary’s functional currency from the effects of volatility in foreign exchange. In these instances, Merck principally utilizes forward exchange contracts to offset the effects of exchange on exposures denominated in developed country currencies, primarily the euro and Japanese yen. For exposures in developing country currencies, the Company will enter into forward contracts to partially offset the effects of exchange on exposures when it is deemed economical to do so based on a cost-benefit analysis that considers the magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instrument. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows.
Monetary assets and liabilities denominated in a currency other than the functional currency of a given subsidiary are remeasured at spot rates in effect on the balance sheet date with the effects of changes in spot rates reported in Other (income) expense, net. The forward contracts are not designated as hedges and are marked to market through Other (income) expense, net. Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the remeasured assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. These differences are not significant due to the short-term nature of the contracts, which typically have average maturities at inception of less than one year.
The Company also uses forward exchange contracts to hedge 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 AOCI until either the sale or complete or substantially complete liquidation of the subsidiary. The Company excludes certain portions of the change in fair value of its derivative instruments from the assessment of hedge effectiveness (excluded 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 June 30,Six Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,
($ in millions)20212020202120202021202020212020
Net Investment Hedging Relationships
Foreign exchange contracts
$(3)$8 $(28)$5 $(4)$(4)$(8)$(11)
Euro-denominated notes45 72 (122)21 — — — — 
(1) No amounts were reclassified from AOCI into income related to the sale of a subsidiary.
Interest Rate Risk Management
The Company may use interest rate swap contracts on certain investing and borrowing transactions to manage its net exposure to interest rate changes and to reduce its overall cost of borrowing. The Company does not use leveraged swaps and, in general, does not leverage any of its investment activities that would put principal capital at risk.
In January 2021, five interest rate swaps with a total notional amount of $1.15 billion matured. These swaps effectively converted the Company’s $1.15 billion, 3.875% fixed-rate notes due 2021 to variable rate debt. At June 30, 2021, the Company was a party to nine pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes as detailed in the table below.
June 30, 2021
($ in millions)Par Value of DebtNumber of Interest Rate Swaps HeldTotal Swap Notional Amount
2.40% notes due 2022
$1,000 4 $1,000 
2.35% notes due 2022
1,250 5 1,250 
The interest rate swap contracts are designated hedges of the fair value changes in the notes attributable to changes in the benchmark LIBOR swap rate. The fair value changes in the notes attributable to changes in the LIBOR swap rate are recorded in interest expense along with the offsetting fair value changes in the swap contracts. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statement of Cash Flows.
The table below presents the location of amounts recorded on the Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount
($ in millions)June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Loans payable and current portion of long-term debt$1,261 $1,150 $11 $— 
Long-Term Debt1,022 2,301 23 53 
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments:
  June 30, 2021December 31, 2020
  Fair Value of DerivativeU.S. Dollar
Notional		Fair Value of DerivativeU.S. Dollar
Notional
($ in millions)AssetLiabilityAssetLiability
Derivatives Designated as Hedging Instruments
Balance Sheet Caption
Interest rate swap contractsOther current assets$12 $— $1,250 $1 $— $1,150 
Interest rate swap contractsOther Assets24 — 1,000 54 — 2,250 
Foreign exchange contractsOther current assets156 — 5,970 12 — 3,183 
Foreign exchange contractsOther Assets49 — 1,601 45 — 2,030 
Foreign exchange contractsAccrued and other current liabilities— 40 2,850 — 217 5,049 
Foreign exchange contractsOther Noncurrent Liabilities— 1 84 — 1 52 
  $241 $41 $12,755 $112 $218 $13,714 
Derivatives Not Designated as Hedging Instruments
Balance Sheet Caption      
Foreign exchange contractsOther current assets$92 $— $6,981 $70 $— $7,260 
Foreign exchange contractsAccrued and other current liabilities— 133 9,690 — 307 11,810 
  $92 $133 $16,671 $70 $307 $19,070 
  $333 $174 $29,426 $182 $525 $32,784 
As noted above, the Company records its derivatives on a gross basis in the Condensed Consolidated Balance Sheet. The Company has master netting agreements with several of its financial institution counterparties (see Concentrations of Credit Risk below). The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes:
 June 30, 2021December 31, 2020
($ in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheet$333 $174 $182 $525 
Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet
(152)(152)(156)(156)
Cash collateral received/posted(13)— — (36)
Net amounts$168 $22 $26 $333 
The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value or cash flow hedging relationships (including amounts attributable to discontinued operations):
Sales
Other (income) expense, net (1)
Other comprehensive income (loss)Sales
Other (income) expense, net (1)
Other comprehensive income (loss)
Three Months Ended June 30,Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
($ in millions)202120202021202020212020202120202021202020212020
Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded$11,402 $9,353 $(103)$(387)$1,545 $(2)$22,029 $19,641 $(558)$(325)$1,557 $(200)
(Gain) loss on fair value hedging relationships
Interest rate swap contracts
Hedged items
— — (9)1 — — — — (19)68 — — 
Derivatives designated as hedging instruments
— — (1)(8)— — — — — (76)— — 
Impact of cash flow hedging relationships
Foreign exchange contracts
Amount of gain recognized in OCI on derivatives
— — — — (58)(109)— — — — 121 69 
(Decrease) increase in Sales as a result of AOCI reclassifications
(71)42 — — 71 (42)(183)88 — — 183 (88)
Interest rate contracts
Amount of gain recognized in Other (income) expense, net on derivatives
— — — (1)— — — — (1)(2)— — 
Amount of loss recognized in OCI on derivatives
— — — — — (1)— — — — (1)(2)
(1) Interest expense is a component of Other (income) expense, net.
The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments (including amounts attributable to discontinued operations):
Amount of Derivative Pretax (Gain) Loss Recognized in Income
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Derivatives Not Designated as Hedging InstrumentsIncome Statement Caption
Foreign exchange contracts (1)
Other (income) expense, net$167 $49 $217 $(131)
Foreign exchange contracts (2)
Sales14 4 10 (3)
Interest rate contracts (3)
Other (income) expense, net— 9 — 9 
(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. Amounts in 2021 include a loss on forward exchange contracts entered into in conjunction with the spin-off of Organon.
(2) These derivative contracts serve as economic hedges of forecasted transactions.
(3) These derivative contracts serve as economic hedges against rising treasury rates.
At June 30, 2021, the Company estimates $52 million of pretax net unrealized losses on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCI to Sales. The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity.
Investments in Debt and Equity Securities
Information on investments in debt and equity securities is as follows:
 June 30, 2021December 31, 2020
 Amortized
Cost		Gross UnrealizedFair
Value		Amortized
Cost		Gross UnrealizedFair
Value
($ in millions)GainsLossesGainsLosses
U.S. government and agency securities$82 $— $— $82 $84 $— $— $84 
Corporate notes and bonds4 — — 4 — — — — 
Foreign government bonds2 — — 2 5 — — 5 
Total debt securities$88 $— $— $88 $89 $— $— $89 
Publicly traded equity securities (1)
1,579 1,787 
Total debt and publicly traded equity securities
$1,667 $1,876 
(1) Unrealized net losses recorded in Other (income) expense, net on equity securities still held at June 30, 2021 were $18 million and $199 million in the second quarter and first six months of 2021, respectively. Unrealized net gains recorded in Other (income) expense, net on equity securities still held at June 30, 2020 were $464 million and $469 million in the second quarter and first six months of 2020, respectively.
At June 30, 2021 and June 30, 2020, the Company also had $694 million and $487 million, respectively, of equity investments without readily determinable fair values included in Other Assets. The Company recognizes unrealized gains on these equity investments based on favorable observable price changes from transactions involving similar investments of the same investee and recognizes unrealized losses based on unfavorable observable price changes. During the first six months of 2021, the Company recorded unrealized gains of $75 million and unrealized losses of $1 million in Other (income) expense, net related to these equity investments held at June 30, 2021. During the first six months of 2020, the Company recorded unrealized gains of $18 million and unrealized losses of $3 million in Other (income) expense, net related to these equity investments held at June 30, 2020. Cumulative unrealized gains and cumulative unrealized losses based on observable prices changes for investments in equity investments without readily determinable fair values still held at June 30, 2021 were $244 million and $8 million, respectively.
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3 - Unobservable inputs that are supported by little or no market activity. Level 3 assets or liabilities are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as assets or liabilities for which the determination of fair value requires significant judgment or estimation. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
Fair Value Measurements UsingFair Value Measurements Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
($ in millions)June 30, 2021December 31, 2020
Assets
Investments
Foreign government bonds$— $2 $— $2 $— $5 $— $5 
Publicly traded equity securities409 — — 409 780 — — 780 
 409 2 — 411 780 5 — 785 
Other assets (1)
U.S. government and agency securities82 — — 82 84 — — 84 
Corporate notes and bonds4 — — 4 — — — — 
Publicly traded equity securities1,170 — — 1,170 1,007 — — 1,007 
1,256 — — 1,256 1,091 — — 1,091 
Derivative assets (2)
Forward exchange contracts— 203 — 203 — 90 — 90 
Purchased currency options— 94 — 94 — 37 — 37 
Interest rate swaps— 36 — 36 — 55 — 55 
 — 333 — 333 — 182 — 182 
Total assets$1,665 $335 $— $2,000 $1,871 $187 $— $2,058 
Liabilities
Other liabilities
Contingent consideration$— $— $879 $879 $— $— $841 $841 
Derivative liabilities (2)
Forward exchange contracts— 173 — 173 — 505 — 505 
Written currency options— 1 — 1 — 20 — 20 
— 174 — 174 — 525 — 525 
Total liabilities$— $174 $879 $1,053 $— $525 $841 $1,366 
(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 June 30, 2021 and December 31, 2020, Cash and cash equivalents included $7.5 billion and $6.8 billion of cash equivalents, respectively (which would be considered Level 2 in the fair value hierarchy).
Contingent Consideration
Summarized information about the changes in liabilities for contingent consideration associated with business acquisitions is as follows:
Six Months Ended June 30,
($ in millions)20212020
Fair value January 1$841 $767 
Additions— 97 
Changes in estimated fair value (1)
50 40 
Payments— (106)
Other(12)— 
Fair value June 30 (2)(3)
$879 $798 
(1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net. Includes cumulative translation adjustments.
(2) Balance at June 30, 2021 includes $297 million recorded as a current liability for amounts expected to be paid within the next 12 months.
(3) At June 30, 2021 and December 31, 2020, $759 million and $711 million, respectively, 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 of 8% to present value the cash flows.
The additions to contingent consideration in 2020 relate to the acquisition of Themis (see Note 3). The payments of contingent consideration in 2020 relate to liabilities recorded in connection with the termination of the Sanofi-Pasteur MSD joint venture in 2016.
Other Fair Value Measurements
Some of the Company’s financial instruments, such as cash and cash equivalents, receivables and payables, are reflected in the balance sheet at carrying value, which approximates fair value due to their short-term nature.
The estimated fair value of loans payable and long-term debt (including current portion) at June 30, 2021, was $29.5 billion compared with a carrying value of $26.5 billion and at December 31, 2020, was $36.0 billion compared with a carrying value of $31.8 billion. Fair value was estimated using recent observable market prices and would be considered Level 2 in the fair value hierarchy.
Concentrations of Credit Risk
On an ongoing basis, the Company monitors concentrations of credit risk associated with corporate and government issuers of securities and financial institutions with which it conducts business. Credit exposure limits are established to limit a concentration with any single issuer or institution. Cash and investments are placed in instruments that meet high credit quality standards as specified in the Company’s investment policy guidelines.
The majority of the Company’s accounts receivable arise from product sales in the U.S., Europe and China and are primarily due from drug wholesalers and retailers, hospitals, government agencies, managed health care providers and pharmacy benefit managers. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company also continues to monitor global economic conditions, including the volatility associated with international sovereign economies, and associated impacts on the financial markets and its business.
The Company has accounts receivable factoring agreements with financial institutions in certain countries to sell accounts receivable. The Company factored $2.4 billion and $2.1 billion of accounts receivable at June 30, 2021 and December 31, 2020, respectively, under these factoring arrangements, which reduced outstanding accounts receivable. The cash received from the financial institutions is reported within operating activities in the 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. The net cash flows relating to these collections are reported as financing activities in the 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 at June 30, 2021. The obligation to return such collateral is recorded in Accrued and other current liabilities. Cash collateral advanced by the Company to counterparties was $36 million at December 31, 2020.
v3.21.2
Inventories
 6 Months Ended
Jun. 30, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of:
($ in millions)June 30, 2021December 31, 2020
Finished goods$1,778 $1,610 
Raw materials and work in process5,954 5,949 
Supplies175 146 
Total (approximates current cost)7,907 7,705 
Decrease to LIFO cost4 (81)
 $7,911 $7,624 
Recognized as:
Inventories$5,499 $5,554 
Other assets2,412 2,070 
Amounts recognized as Other Assets are comprised almost entirely of raw materials and work in process inventories. At June 30, 2021 and December 31, 2020, these amounts included $1.7 billion and $1.8 billion, respectively, of inventories not expected to be sold within one year. In addition, these amounts included $681 million and $279 million at June 30, 2021 and December 31, 2020, respectively, of inventories produced in preparation for product launches.
v3.21.2
Goodwill and Intangibles
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles Goodwill and IntangiblesIn connection with the spin-off of Organon (see Note 2), goodwill was reduced by $1.4 billion. Additionally, other intangibles, on a net basis, were reduced by $519 million, including products and products rights of $394 million and licenses of $125 million.
v3.21.2
Contingencies
 6 Months Ended
Jun. 30, 2021
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
Fosamax
As previously disclosed, Merck is a defendant in product liability lawsuits in the U.S. involving Fosamax (Fosamax Litigation). As of June 30, 2021, approximately 3,475 cases are pending against Merck in either a federal multidistrict litigation (Femur Fracture MDL) or state court. Plaintiffs in the vast majority of these cases generally allege that they sustained femur fractures and/or other bone injuries (Femur Fractures) in association with the use of Fosamax.
In March 2014, the Femur Fracture MDL court dismissed with prejudice approximately 650 cases on preemption grounds. Plaintiffs in approximately 515 of those cases appealed that decision to the U.S. Court of Appeals for the Third Circuit (Third Circuit). In March 2017, the Third Circuit issued a decision reversing the Femur Fracture MDL court’s preemption ruling and remanding the appealed cases back to the Femur Fracture MDL court. In May 2019, the U.S. Supreme Court decided that the Third Circuit had incorrectly concluded that the issue of preemption should be resolved by a jury, and accordingly vacated the judgment of the Third Circuit and remanded the proceedings back to the Third Circuit to address the issue in a manner consistent with the Supreme Court’s opinion. In November 2019, the Third Circuit remanded the cases back to the District Court in order to allow that court to determine in the first instance whether the plaintiffs’ state law claims are preempted by federal law under the standards described by the Supreme Court in its opinion. Briefing on the issue is closed, and the parties await the decision of the District Court.
Discovery is presently stayed in the Femur Fracture MDL and in the state court in California. As part of the spin-off of Organon, Organon is required to indemnify Merck for all liabilities relating to, arising from, or resulting from the Fosamax Litigation.
Januvia/Janumet
As previously disclosed, Merck is a defendant in product liability lawsuits in the U.S. involving Januvia and/or Janumet. As of June 30, 2021, Merck is aware of approximately 1,470 product users alleging that Januvia and/or Janumet caused the development of pancreatic cancer and other injuries.
Most claims have been filed in multidistrict litigation before the U.S. District Court for the Southern District of California (MDL). On March 9, 2021, the MDL Court issued an omnibus order granting defendants’ summary judgment
motions based on preemption and failure to establish general causation, as well as granting defendants’ motions to exclude plaintiffs’ expert witnesses.
Outside of the MDL, the majority of claims have been filed in coordinated proceedings before the Superior Court of California, County of Los Angeles (California State Court). On April 6, 2021, the court in California issued an omnibus order granting defendants’ summary judgment motions and also granting defendants’ motions to exclude plaintiffs’ expert witnesses.
As of June 30, 2021, six product users have claims pending against Merck in state courts other than California, including Illinois. In June 2017, the Illinois trial court denied Merck’s motion for summary judgment based on federal preemption. Merck appealed, and the Illinois appellate court affirmed in December 2018. Merck filed a petition for leave to appeal to the Illinois Supreme Court in February 2019. In April 2019, the Illinois Supreme Court stayed consideration of the pending petition to appeal until the U.S. Supreme Court issued its opinion in Merck Sharp & Dohme Corp. v. Albrecht (relating to the Fosamax matter discussed above). Merck filed the opinion in Albrecht with the Illinois Supreme Court in June 2019. The petition for leave to appeal was decided in September 2019, in which the Illinois Supreme Court directed the intermediate appellate court to reconsider its earlier ruling. The Illinois Appellate Court issued a favorable decision concluding, consistent with Albrecht, that preemption presents a legal question to be resolved by the court. In May 2020, the Illinois Appellate Court issued a mandate to the state trial court, which, as of March 31, 2021, had not scheduled a case management conference or otherwise taken action.
In addition to the claims noted above, the Company has agreed to toll the statute of limitations for approximately 50 additional claims. The Company intends to continue defending against any remaining lawsuits.
Governmental Proceedings
As previously disclosed, the Company’s subsidiaries in China have received and may continue to receive inquiries regarding their operations from various Chinese governmental agencies. Some of these inquiries may be related to matters involving other multinational pharmaceutical companies, as well as Chinese entities doing business with such companies. The Company’s policy is to cooperate with these authorities and to provide responses as appropriate.
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, MSD, Schering Corporation, Schering-Plough Corporation, and MSP Singapore Company LLC (collectively, the Merck Defendants) are defendants in putative class action and opt-out lawsuits filed in 2018 on behalf of direct and indirect purchasers of Zetia alleging violations of federal and state antitrust laws, as well as other state statutory and common law causes of action. The cases have been consolidated for pretrial purposes in a federal multidistrict litigation before Judge Rebecca Beach Smith in the Eastern District of Virginia. In December 2018, the court denied the Merck Defendants’ motions to dismiss or stay the direct purchaser putative class actions pending bilateral arbitration. In August 2019, the district court adopted in full the report and recommendation of the magistrate judge with respect to the Merck Defendants’ motions to dismiss on non-arbitration issues, thereby granting in part and denying in part Merck Defendants’ motions to dismiss. In addition, in June 2019, the representatives of the putative direct purchaser class filed an amended complaint, and in August 2019, retailer opt-out plaintiffs filed an amended complaint. In December 2019, the district court granted the Merck Defendants’ motion to dismiss to the extent the motion sought dismissal of claims for overcharges paid by entities that purchased generic ezetimibe from Par Pharmaceutical, Inc. (Par Pharmaceutical) and dismissed any claims for such overcharges. 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 and, in November 2020, the U.S. Court of Appeals for the Fourth Circuit granted the Merck Defendants’ motion for permission to appeal the district court’s order. 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. Also, in August 2020, the magistrate judge recommended that the court grant the motion for class certification filed by the putative indirect purchaser class. The Merck Defendants objected to this report and recommendation and are awaiting a decision from the district court.
In August 2020, the Merck Defendants filed a motion for summary judgment and other motions, and plaintiffs filed a motion for partial summary judgment, and other motions. Those motions are now fully briefed, and the court has heard
argument on certain of the motions. The court may hold additional hearings on the other motions. Trial in this matter has been adjourned.
In September 2020, United Healthcare Services, Inc. filed a lawsuit in the U.S. District Court for the District of Minnesota against the Merck Defendants and others (the UHC Action). The UHC Action makes similar allegations as those made in the Zetia class action. In September 2020, the U.S. Judicial Panel on Multidistrict Litigation transferred the case to the Eastern District of Virginia to proceed with the multidistrict Zetia litigation already in progress.
In December 2020, Humana Inc. filed a lawsuit in the Superior Court of the State of California, County of San Francisco, against Merck and others, alleging defendants violated state antitrust laws in multiple states. Also, in December 2020, Centene Corporation and others filed a lawsuit in the Superior Court of the State of California, County of San Francisco, against the same defendants as Humana. Both lawsuits allege similar anticompetitive acts to those alleged in the Zetia class action. In July 2021, the California Court ruled on defendants’ Motion to Quash for lack of personal jurisdiction, granting the motion as to the out-of-state claims against defendants, and ordering limited jurisdictional discovery with regard to the California claims.
In June 2021, Kaiser Foundation Health Plan, Inc. similarly filed a lawsuit in the Superior Court of the State of California, County of San Francisco, against the same defendants as Humana and Centene. The Kaiser lawsuit alleges similar anticompetitive acts to those alleged in the Zetia class action. The Kaiser action was removed to the United States District Court for the Northern District of California on July 16, 2021.
Also, on July 16, 2021, Humana filed another action against the Merck Defendants in New Jersey in the Bergen County Superior Court, re-asserting the claims that were dismissed in their California action.
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, potentially significant intangible asset impairment charges.
Bridion — 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.
Mylan Pharmaceuticals Inc., Mylan API US LLC, and Mylan Inc. (Mylan) have filed motions to dismiss in the District of New Jersey for lack of venue and failure to state a claim against certain defendants, and in the Northern District of West Virginia for failure to state a claim against certain defendants. The New Jersey motion has not yet been decided, and the West Virginia action is stayed pending resolution of the New Jersey motion.
The Company has settled with two generic companies providing that these generic companies can bring their generic versions of Bridion to the market in January 2026 or earlier under certain circumstances.
Januvia, Janumet, Janumet XR — As previously disclosed, the FDA has granted pediatric exclusivity with respect to Januvia, Janumet, and Janumet XR, 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. Including this exclusivity, key patent protection extends to January 2023. The Company anticipates that sales of Januvia and Janumet in the U.S. will decline significantly after this loss of market exclusivity. 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, which, if determined to be valid, would preclude generic manufacturers from making sitagliptin phosphate salt and polymorphic forms before that patent, inclusive of pediatric exclusivity, expires in 2027 (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 which, inclusive of pediatric exclusivity, expires in 2029. The Company also filed a patent infringement lawsuit against Mylan in the Northern District of West Virginia. The Judicial Panel of 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. In February 2021, the Company amended its complaint against Apotex Inc. and Apotex Corp., additional defendants in the patent infringement lawsuits, to add infringement claims related to a patent that expires in 2025 and covers certain processes for manufacturing sitagliptin.
The U.S. District Court for the District of Delaware has scheduled the lawsuits for a single three-day trial on invalidity issues in October 2021. The Court has scheduled separate one-day trials on infringement issues in November 2021 through January 2022, to the extent such trials are necessary. In the Company’s case against Mylan, the U.S. District Court for the Northern District of West Virginia has conditionally scheduled a three-day trial in December 2021 on all issues.
The Company has settled with ten generic companies providing that these generic companies can bring their generic versions of Januvia and Janumet to the market in May 2027 or earlier under certain circumstances, and their generic versions of Janumet XR to the market in July 2026 or earlier under certain circumstances.
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, which other manufacturers joined. The USPTO instituted IPR proceedings in May 2020, finding a reasonable likelihood that the challenged claims are not valid. Three other generic companies filed similar IPRs, which were joined with Mylan in a single proceeding by the USPTO. A trial was held in February 2021 and a final decision was rendered in May 2021, holding that all of the challenged claims were valid. Mylan and two additional challengers have appealed the USPTO’s decision to the United States Court of Appeals for the Federal Circuit.
In Germany, generic companies have sought the revocation of the Supplementary Protection Certificate (SPC) for Janumet. If the generic companies are successful, Janumet could lose market exclusivity in Germany with expiry of pediatric market exclusivity in September 2022. A hearing was held in June 2021 where the SPC for Janumet was nullified, which the Company has appealed. Challenges to the Janumet SPC have also occurred in other European countries, including Austria, Czech Republic, Finland, Hungary, Italy, Portugal, and Slovakia.
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 June 30, 2021 and December 31, 2020 of approximately $230 million and $235 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.
v3.21.2
Equity
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Equity Equity
Three Months Ended June 30,
 
  
Common Stock
Other
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
Non-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at April 1, 20203,577 $1,788 $39,697 $48,272 $(6,391)1,053 $(57,161)$95 $26,300 
Net income attributable to Merck & Co., Inc.— — — 3,002 — — — — 3,002 
Other comprehensive loss, net of taxes— — — — (2)— — — (2)
Cash dividends declared on common stock ($0.61 per share)
— — — (1,550)— — — — (1,550)
Share-based compensation plans and other— — (324)— — (5)311 — (13)
Net income attributable to noncontrolling interests
— — — — — — — 8 8 
Distributions attributable to noncontrolling interests— — — — — — — (1)(1)
Balance at June 30, 20203,577 $1,788 $39,373 $49,724 $(6,393)1,048 $(56,850)$102 $27,744 
Balance at April 1, 20213,577 $1,788 $39,613 $48,888 $(6,622)1,046 $(56,722)$94 $27,039 
Net income attributable to Merck & Co., Inc.— — — 1,545 — — — — 1,545 
Other comprehensive income, net of taxes— — — — 1,545 — — — 1,545 
Cash dividends declared on common stock ($0.65 per share)
— — — (1,656)— — — — (1,656)
Treasury stock shares purchased— — — — — 3 (239)— (239)
Spin-off of Organon & Co.— — 4,643 — 449 — — (1)5,091 
Share-based compensation plans and other— — (217)— — (5)279 — 62 
Net income attributable to noncontrolling interests
— — — — — — — 1 1 
Balance at June 30, 20213,577 $1,788 $44,039 $48,777 $(4,628)1,044 $(56,682)$94 $33,388 
Six Months Ended June 30,
 
  
Common Stock
Other
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
Non-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at January 1, 20203,577 $1,788 $39,660 $46,602 $(6,193)1,038 $(55,950)$94 $26,001 
Net income attributable to Merck & Co., Inc.— — — 6,221 — — — — 6,221 
Other comprehensive loss, net of taxes— — — — (200)— — — (200)
Cash dividends declared on common stock ($1.22 per share)
— — — (3,099)— — — — (3,099)
Treasury stock shares purchased— — — — — 16 (1,281)— (1,281)
Share-based compensation plans and other— — (287)— — (6)381 — 94 
Net income attributable to noncontrolling interests— — — — — — — 8 8 
Balance at June 30, 20203,577 $1,788 $39,373 $49,724 $(6,393)1,048 $(56,850)$102 $27,744 
Balance at January 1, 20213,577 $1,788 $39,588 $47,362 $(6,634)1,047 $(56,787)$87 $25,404 
Net income attributable to Merck & Co., Inc.— — — 4,724 — — — — 4,724 
Other comprehensive income, net of taxes— — — — 1,557 — — — 1,557 
Cash dividends declared on common stock ($1.30 per share)
— — — (3,309)— — — — (3,309)
Treasury stock shares purchased— — — — — 3 (239)— (239)
Spin-off of Organon & Co.— — 4,643 — 449 — — (1)5,091 
Share-based compensation plans and other— — (192)— — (6)344 — 152 
Net income attributable to noncontrolling interests
— — — — — — — 8 8 
Balance at June 30, 20213,577 $1,788 $44,039 $48,777 $(4,628)1,044 $(56,682)$94 $33,388 
v3.21.2
Pension and Other Postretirement Benefit Plans
 6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost of such plans (including certain costs reported as part of discontinued operations) consisted of the following components: 
  Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
($ in millions)U.S.InternationalU.S.InternationalU.S.InternationalU.S.International
Service cost$98 $87 $88 $73 $198 $179 $175 $146 
Interest cost106 30 109 33 202 59 217 68 
Expected return on plan assets(191)(104)(195)(101)(379)(209)(388)(205)
Amortization of unrecognized prior service credit
(11)(4)(12)(3)(20)(9)(25)(6)
Net loss amortization58 38 76 31 142 78 152 62 
Termination benefits52 2 1 — 53 3 4 1 
Curtailments9 (27)— — 16 (27)2 (1)
Settlements— 2 9 2 — 2 9 2 
 $121 $24 $76 $35 $212 $76 $146 $67 
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components: 
  Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Service cost$13 $13 $26 $26 
Interest cost11 14 22 29 
Expected return on plan assets(20)(19)(39)(37)
Amortization of unrecognized prior service credit(25)(22)(50)(45)
Termination benefits37 — 37 — 
Curtailments(27)— (28)(1)
 $(11)$(14)$(32)$(28)
Net periodic benefit cost (credit) for pension and other postretirement benefit plans in the second quarter and first six months of 2021 includes expenses for curtailments, settlements and termination benefits provided to certain employees in connection with the spin-off of Organon.
In connection with restructuring actions (see Note 5), termination charges were recorded on pension plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring actions, curtailments and settlements were recorded on pension plans as noted in the table above.
The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 12), with the exception of certain amounts for termination benefits, curtailments and settlements, which are recorded in Restructuring costs if the event giving rise to the termination benefits, curtailment or settlement is related to restructuring actions or in Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests if related to the spin-off of Organon (each as noted above).
The transfer of employees to Organon in connection with the spin-off triggered remeasurements of some of the Company’s pension plans. These remeasurements, which were calculated using discount rates and asset values as of the date of the spin-off, resulted in a $1.7 billion reduction to net pension liabilities primarily due to higher discount rates. In addition, $99 million of net pension liabilities were transferred to Organon. The remeasurements and plan transfers also resulted in a related adjustment to Accumulated Other Comprehensive Income (see Note 15).
v3.21.2
Other (Income) Expense, Net
 6 Months Ended
Jun. 30, 2021
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net Other (Income) Expense, Net
Other (income) expense, net, consisted of: 
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Interest income$(9)$(14)$(20)$(39)
Interest expense202 209 401 421 
Exchange losses114 24 155 78 
Income from investments in equity securities, net (1)
(280)(551)(854)(603)
Net periodic defined benefit plan (credit) cost other than service cost(110)(80)(199)(170)
Other, net(20)25 (41)(12)
 $(103)$(387)$(558)$(325)
(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 ownership interests in investment funds are accounted for on a one quarter lag. The Company estimates that gains of approximately $380 million will be recorded in the third quarter of 2021 from ownership interests in investment funds.
Interest paid for the six months ended June 30, 2021 and 2020 was $363 million and $387 million, respectively.
v3.21.2
Taxes on Income
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Taxes on Income Taxes on Income
The effective income tax rates from continuing operations of 29.3% and 14.4% for the second quarter of 2021 and 2020, respectively, and 15.8% and 15.6% for the first six months of 2021 and 2020, respectively. The effective income tax rates from continuing operations in the second quarter and first six months of 2021 reflect the unfavorable effect of a charge for the acquisition of Pandion for which no tax benefit was recognized. Additionally, the effective income tax rate from continuing operations for the first six months of 2021 reflects a net tax benefit of $207 million related to the settlement of certain federal income tax matters as discussed below.
In the first quarter of 2021, the Internal Revenue Service (IRS) concluded its examinations of Merck’s 2015-2016 U.S. federal income tax returns. As a result, the Company was required to make a payment of $190 million (of which $172 million related to Merck continuing operations and $18 million related to Organon discontinued operations). The Company’s reserves for unrecognized tax benefits for the years under examination exceeded the adjustments relating to this examination period and therefore the Company recorded a $236 million net tax benefit in the first six months of 2021 (of which $207 million related to Merck continuing operations and $29 million related to Organon discontinued operations). This net benefit reflects reductions in reserves for unrecognized tax benefits and other related liabilities for tax positions relating to the years that were under examination.
v3.21.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The calculations of earnings per share are as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ and shares in millions except per share amounts)2021202020212020
Net Income from Continuing Operations Attributable to Merck & Co., Inc.$1,213 $2,341 $3,958 $4,812 
Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests332 661 766 1,409 
Net Income Attributable to Merck & Co., Inc.$1,545 $3,002 $4,724 $6,221 
Average common shares outstanding2,533 2,527 2,532 2,531 
Common shares issuable (1)
7 9 8 11 
Average common shares outstanding assuming dilution 2,540 2,536 2,540 2,542 
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders:
Income from Continuing Operations$0.48 $0.93 $1.56 $1.90 
Income from Discontinued Operations0.13 0.26 0.30 0.56 
Net Income$0.61 $1.19 $1.87 $2.46 
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders:
Income from Continuing Operations$0.48 $0.92 $1.56 $1.89 
Income from Discontinued Operations0.13 0.26 0.30 0.55 
Net Income$0.61 $1.18 $1.86 $2.45 
(1)Issuable primarily under share-based compensation plans.
For the second quarter of 2021 and 2020, 12 million and 8 million, respectively, and for the first six months of 2021 and 2020, 11 million and 4 million respectively, of common shares issuable under share-based compensation plans were excluded from the computation of earnings per common share assuming dilution because the effect would have been antidilutive.
v3.21.2
Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss)
Changes in each component of other comprehensive income (loss) are as follows:
Three Months Ended June 30,
($ in millions)DerivativesInvestmentsEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Income (Loss)
Balance April 1, 2020, net of taxes$135 $— $(4,201)$(2,325)$(6,391)
Other comprehensive income (loss) before reclassification adjustments, pretax(110)— (21)63 (68)
Tax23 — 6 16 45 
Other comprehensive income (loss) before reclassification adjustments, net of taxes(87)— (15)79 (23)
Reclassification adjustments, pretax(42)
(1)
— 69 
(3)
— 27 
Tax9 — (15)— (6)
Reclassification adjustments, net of taxes(33)

— 

54 

— 21 
Other comprehensive income (loss), net of taxes(120)— 39 79 (2)
Balance June 30, 2020, net of taxes$15 $— $(4,162)$(2,246)$(6,393)
Balance April 1, 2021, net of taxes$(36)$— $(4,459)$(2,127)$(6,622)
Other comprehensive income (loss) before reclassification adjustments, pretax(59)— 1,767 140 1,848 
Tax13 — (400)(8)(395)
Other comprehensive income (loss) before reclassification adjustments, net of taxes(46)— 1,367 132 1,453 
Reclassification adjustments, pretax71 
(1)
— 55 
(3)
— 126 
Tax(15)— (19)— (34)
Reclassification adjustments, net of taxes56 

— 

36 

— 92 
Other comprehensive income (loss), net of taxes10 — 1,403 132 1,545 
Spin-off of Organon (see Note 2)— — 28 421 449 
Balance June 30, 2021, net of taxes$(26)$— $(3,028)$(1,574)$(4,628)
Six Months Ended June 30,
($ in millions)DerivativesInvestmentsEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Income (Loss)
Balance January 1, 2020, net of taxes$31 $18 $(4,261)$(1,981)$(6,193)
Other comprehensive income (loss) before reclassification adjustments, pretax68 3 (21)(270)(220)
Tax(14)— 11 5 2 
Other comprehensive income (loss) before reclassification adjustments, net of taxes54 3 (10)(265)(218)
Reclassification adjustments, pretax(89)
(1)
(21)
(2)
138 
(3)
— 28 
Tax19 — (29)— (10)
Reclassification adjustments, net of taxes(70)(21)109 — 18 
Other comprehensive income (loss), net of taxes(16)(18)99 (265)(200)
Balance June 30, 2020, net of taxes$15 $— $(4,162)$(2,246)$(6,393)
Balance January 1, 2021, net of taxes$(266)$— $(4,540)$(1,828)$(6,634)
Other comprehensive income (loss) before reclassification adjustments, pretax121 — 1,763 (71)1,813 
Tax(25)— (401)(96)(522)
Other comprehensive income (loss) before reclassification adjustments, net of taxes96 — 1,362 (167)1,291 
Reclassification adjustments, pretax182 
(1)
— 142 
(3)
— 324 
Tax(38)— (20)— (58)
Reclassification adjustments, net of taxes144 — 122 — 266 
Other comprehensive income (loss), net of taxes240 — 1,484 (167)1,557 
Spin-off of Organon (see Note 2)— — 28 421 449 
Balance June 30, 2021, net of taxes$(26)$— $(3,028)$(1,574)$(4,628)
(1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales.
(2) Represents net realized (gains) losses on the sales of available-for-sale debt securities that were reclassified from AOCI to Other (income) expense, net.
(3) Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 11).
v3.21.2
Segment Reporting
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s operations are principally managed on a products basis and include two operating segments, which are the Pharmaceutical and Animal Health segments, 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, primarily administered at physician offices. The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities. A large component of pediatric and adolescent vaccine sales are made to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles.
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 and animal producers.
The Company previously had a Healthcare Services segment that provided services and solutions focused on engagement, health analytics and clinical services to improve the value of care delivered to patients. The Company divested the remaining businesses in this segment during the first quarter of 2020.
Sales of the Company’s products were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
 ($ in millions)U.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotal
Pharmaceutical:
Oncology
Keytruda$2,347 $1,829 $4,176 $2,043 $1,345 $3,388 $4,528 $3,548 $8,076 $3,949 $2,722 $6,672 
Alliance revenue - Lynparza (1)
124 124 248 105 73 178 242 233 475 190 133 323 
Alliance revenue - Lenvima (1)
88 93 181 98 53 151 173 137 310 188 91 279 
Vaccines
Gardasil/Gardasil 9
454 781 1,234 168 488 656 766 1,385 2,151 629 1,124 1,753 
ProQuad/M-M-R II/Varivax
386 130 516 263 115 378 718 246 965 596 217 813 
RotaTeq111 97 208 100 68 168 229 137 366 241 150 391 
Pneumovax 23
100 52 152 21 96 117 173 150 323 203 170 373 
Vaqta22 34 56 17 11 28 47 43 90 47 41 88 
Hospital Acute Care
Bridion197 190 387 107 117 224 364 363 727 250 274 524 
Prevymis37 56 93 28 35 63 72 103 174 55 68 123 
Noxafil14 52 66 6 67 73 29 104 133 14 154 168 
Primaxin— 60 60 1 63 64 — 125 125 1 114 115 
Cancidas1 53 54 (2)45 43 3 108 111 1 98 98 
Invanz(4)52 48 — 43 43 — 104 104 6 102 108 
Zerbaxa(2)1 (1)17 15 32 (4)(5)(9)37 32 69 
Immunology
Simponi— 202 202 — 191 191 — 416 416 — 406 406 
Remicade— 75 75 — 73 73 — 160 160 — 160 160 
Neuroscience
Belsomra14 63 78 22 61 84 32 125 157 49 114 163 
Virology
Isentress/Isentress HD
74 118 192 76 120 196 145 256 401 151 290 441 
Cardiovascular
Alliance revenue-Adempas/Verquvo (2)
81 (7)74 73 6 79 149 — 149 122 11 133 
Adempas— 74 74 — 57 57 — 129 129 — 113 113 
Diabetes
Januvia284 500 784 413 441 854 632 961 1,593 768 860 1,628 
Janumet74 403 477 143 348 490 158 805 962 256 737 993 
Other pharmaceutical (3)
245 301 546 259 289 548 485 644 1,130 513 637 1,149 
Total Pharmaceutical segment sales4,647 5,333 9,980 3,958 4,220 8,178 8,941 10,277 19,218 8,266 8,818 17,083 
Animal Health:
Livestock161 659 821 122 526 648 318 1,322 1,640 284 1,102 1,386 
Companion Animals298 353 651 220 233 453 578 672 1,250 442 486 928 
Total Animal Health segment sales459 1,012 1,472 342 759 1,101 896 1,994 2,890 726 1,588 2,314 
Other segment sales (4)
— — — — — — — — — 23 — 23 
Total segment sales5,106 6,345 11,452 4,300 4,979 9,279 9,837 12,271 22,108 9,015 10,406 19,420 
Other (5)
(6)(44)(50)22 52 74 53 (132)(79)38 182 221 
 $5,100 $6,301 $11,402 $4,322 $5,031 $9,353 $9,890 $12,139 $22,029 $9,053 $10,588 $19,641 
U.S. plus international may not equal total due to rounding.
(1)    Alliance revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 4).
(2)    Alliance revenue 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 4).
(3)    Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(4)    Represents sales for the Healthcare Services segment. All the businesses in the Healthcare Services segment were fully divested in the first quarter of 2020.
(5)    Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales.
Product sales are recorded net of the provision for discounts, including chargebacks, which are customer discounts that occur when a contracted customer purchases through an intermediary wholesale purchaser, and rebates that are owed based upon definitive contractual agreements or legal requirements with private sector and public sector (Medicaid and Medicare Part D) benefit providers, after the final dispensing of the product by a pharmacy to a benefit plan participant. These discounts, in the aggregate, reduced U.S. sales by $3.1 billion and $2.6 billion for the three months ended June 30, 2021 and 2020, respectively, and $6.0 billion and $5.4 billion for the six months ended June 30, 2021 and 2020, respectively.
Consolidated sales by geographic area where derived are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
United States$5,100 $4,322 $9,890 $9,053 
Europe, Middle East and Africa3,333 2,622 6,569 5,591 
China975 623 1,697 1,269 
Japan661 621 1,291 1,204 
Asia Pacific (other than China and Japan)594 489 1,168 1,015 
Latin America532 423 1,032 875 
Other207 253 382 634 
 $11,402 $9,353 $22,029 $19,641 
A reconciliation of segment profits to Income from Continuing Operations Before Taxes is as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Segment profits:
Pharmaceutical segment$7,257 $5,832 $13,845 $12,209 
Animal Health segment552 408 1,124 887 
Other segment— — — 2 
Total segment profits7,809 6,240 14,969 13,098 
Other profits(79)43 (113)163 
Unallocated:
Interest income9 14 20 39 
Interest expense(202)(209)(401)(421)
Amortization(357)(599)(871)(988)
Depreciation(332)(367)(673)(733)
Research and development(4,175)(1,956)(6,480)(4,020)
Restructuring costs(82)(82)(380)(152)
Other unallocated, net(874)(343)(1,367)(1,284)
 $1,717 $2,741 $4,704 $5,702 
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 sales.
Other unallocated, net, includes expenses from corporate and manufacturing cost centers, goodwill and other intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration, and other miscellaneous income or expense items.
v3.21.2
Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2021
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 25, 2021.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.
Recently Adopted and Issued Accounting Standards
Recently Adopted Accounting Standards
In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intraperiod tax allocations and deferred tax liabilities, clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination, and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective January 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.
In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective January 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.
Recently Issued Accounting Standard Not Yet Adopted
In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.
Legal Costs, Policy Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable.
v3.21.2
Spin-Off of Organon & Co. (Tables)
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
Details of Income from discontinued operations, net of taxes and amounts attributable to noncontrolling interests are as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)
2021 (1)
2020
2021 (1)
2020
Sales$1,059 $1,519 $2,512 $3,288 
Costs, Expenses and Other
Cost of sales318 412 789 895 
Selling, general and administrative431 293 877 657 
Research and development50 38 103 72 
Restructuring costs— 1 1 3 
Other (income) expense, net(23)(4)(15)4 
776 740 1,755 1,631 
Income from discontinued operations before taxes283 779 757 1,657 
Tax (benefit) provision(49)114 (12)239 
Income from discontinued operations, net of taxes332 665 769 1,418 
Less: Income of discontinued operations attributable to noncontrolling interests— 4 3 9 
Income from discontinued operations, net of taxes and amounts attributable to noncontrolling interests$332 $661 $766 $1,409 
(1) Reflects amounts through the June 2, 2021 spin-off date.
Details of assets and liabilities of discontinued operations are as follows: 
($ in millions)December 31, 2020
Cash and cash equivalents$12 
Accounts receivable, less allowance for doubtful accounts1,048 
Inventories756 
Other current assets867 
Current assets of discontinued operations$2,683 
Property, plant and equipment, net$986 
Goodwill1,356 
Other intangibles, net503 
Other assets330 
Noncurrent Assets of Discontinued Operations$3,175 
Trade accounts payable$267 
Accrued and other current liabilities841 
Income taxes payable(22)
Total current liabilities of discontinued operations$1,086 
Deferred income taxes$10 
Other noncurrent liabilities176 
Noncurrent Liabilities of Discontinued Operations$186 
v3.21.2
Acquisitions, Research Collaborations and License Agreements (Tables)
 6 Months Ended
Jun. 30, 2021
Business Combinations [Abstract]  
Fair Value of Assets Acquired and Liabilities Assumed
The estimated fair value of assets acquired and liabilities assumed from ArQule is as follows:
($ in millions)January 16, 2020
Cash and cash equivalents$145 
IPR&D MK-1026 (formerly ARQ 531) (1)
2,280 
Licensing arrangement for ARQ 08780 
Deferred income tax liabilities(361)
Other assets and liabilities, net34 
Total identifiable net assets2,178 
Goodwill (2)
512 
Consideration transferred$2,690 
(1) The estimated fair value of the identifiable intangible asset related to IPR&D was determined using an income approach. The future net cash flows were discounted to present value utilizing a discount rate of 12.5%. Actual cash flows are likely to be different than those assumed.
(2) The goodwill was allocated to the Pharmaceutical segment and is not deductible for tax purposes.
v3.21.2
Collaborative Arrangements (Tables)
 6 Months Ended
Jun. 30, 2021
Collaborative Arrangements [Abstract]  
Collaboration Arrangements
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Lynparza$248 $178 $475 $323 
Alliance revenue - Koselugo8 — 14 — 
Total alliance revenue$256 $178 $489 $323 
Cost of sales (1)
42 137 84 164 
Selling, general and administrative43 39 83 72 
Research and development31 37 60 73 
($ in millions)June 30, 2021December 31, 2020
Receivables from AstraZeneca included in Other current assets
$258 $215 
Payables to AstraZeneca included in Accrued and other current liabilities (2)
418 423 
(1) Represents amortization of capitalized milestone payments.
(2) Includes accrued milestone payments.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Lenvima$181 $151 $310 $279 
Cost of sales (1)
47 135 94 170 
Selling, general and administrative31 19 54 31 
Research and development57 56 121 120 
($ in millions)June 30, 2021December 31, 2020
Receivables from Eisai included in Other current assets
$212 $157 
Payables to Eisai included in Accrued and other current liabilities (2)
600 335 
Payables to Eisai included in Other Noncurrent Liabilities (3)
— 600 
(1) Represents amortization of capitalized milestone payments.
(2) Includes accrued milestone and future option payments.
(3) Includes accrued milestone payments.
Summarized financial information related to this collaboration is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Alliance revenue - Adempas/Verquvo$74 $79 $149 $133 
Net sales of Adempas recorded by Merck74 57 129 113 
Net sales of Verquvo recorded by Merck1 — 1 — 
Total sales$149 $136 $279 $246 
Cost of sales (1)
39 28 229 57 
Selling, general and administrative32 17 58 28 
Research and development13 16 20 41 
($ in millions)June 30, 2021December 31, 2020
Receivables from Bayer included in Other current assets
$65 $65 
Payables to Bayer included in Other Noncurrent Liabilities (2)
400 — 
(1) Includes amortization of intangible assets. Amount in the first six months of 2021 includes $153 million of cumulative amortization as noted above.
(2) Represents accrued milestone payment.
v3.21.2
Restructuring (Tables)
 6 Months Ended
Jun. 30, 2021
Restructuring and Related Activities [Abstract]  
Charges Related to Restructuring Program Activities by Type of Cost
The following tables summarize the charges related to restructuring program activities by type of cost:
 Three Months Ended June 30, 2021Six Months Ended June 30, 2021
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotalSeparation
Costs		Accelerated
Depreciation		OtherTotal
Cost of sales$— $11 $27 $38 $— $21 $44 $65 
Selling, general and administrative— 2 — 2 — 4 — 4 
Research and development— 6 — 6 — 13 — 13 
Restructuring costs64 — 18 82 293 — 87 380 
$64 $19 $45 $128 $293 $38 $131 $462 
 Three Months Ended June 30, 2020Six Months Ended June 30, 2020
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotalSeparation
Costs		Accelerated
Depreciation		OtherTotal
Cost of sales$— $31 $(6)$25 $— $56 $37 $93 
Selling, general and administrative— 11 — 11 — 22 — 22 
Research and development— 31 — 31 — 48 — 48 
Restructuring costs35 — 47 82 82 — 70 152 
$35 $73 $41 $149 $82 $126 $107 $315 
Charges and Spending Relating to Restructuring Activities by Program
The following table summarizes the charges and spending relating to restructuring program activities for the six months ended June 30, 2021:
($ in millions)Separation
Costs		Accelerated
Depreciation		OtherTotal
Restructuring reserves January 1, 2021
$567 $— $19 $586 
Expense293 38 131 462 
(Payments) receipts, net(230)— (157)(387)
Non-cash activity— (38)48 10 
Restructuring reserves June 30, 2021 (1)
$630 $— $41 $671 
(1)The remaining cash outlays are expected to be substantially completed by the end of 2023.
v3.21.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Effect of Net Investment Hedges on OCI and the Consolidated Statement of Income
The effects of the Company’s net investment hedges on OCI and the Consolidated Statement of Income are shown below:
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income (1)
Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing
Three Months Ended June 30,Six Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,
($ in millions)20212020202120202021202020212020
Net Investment Hedging Relationships
Foreign exchange contracts
$(3)$8 $(28)$5 $(4)$(4)$(8)$(11)
Euro-denominated notes45 72 (122)21 — — — — 
(1) No amounts were reclassified from AOCI into income related to the sale of a subsidiary.
Summary of Interest Rate Swaps Held At June 30, 2021, the Company was a party to nine pay-floating, receive-fixed interest rate swap contracts designated as fair value hedges of fixed-rate notes in which the notional amounts match the amount of the hedged fixed-rate notes as detailed in the table below.
June 30, 2021
($ in millions)Par Value of DebtNumber of Interest Rate Swaps HeldTotal Swap Notional Amount
2.40% notes due 2022
$1,000 4 $1,000 
2.35% notes due 2022
1,250 5 1,250 
Amounts Recorded on Balance Sheet Related to Fair Value Hedges
The table below presents the location of amounts recorded on the Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:
Carrying Amount of Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount
($ in millions)June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Loans payable and current portion of long-term debt$1,261 $1,150 $11 $— 
Long-Term Debt1,022 2,301 23 53 
Fair Value of Derivatives on a Gross Basis Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments
Presented in the table below is the fair value of derivatives on a gross basis segregated between those derivatives that are designated as hedging instruments and those that are not designated as hedging instruments:
  June 30, 2021December 31, 2020
  Fair Value of DerivativeU.S. Dollar
Notional		Fair Value of DerivativeU.S. Dollar
Notional
($ in millions)AssetLiabilityAssetLiability
Derivatives Designated as Hedging Instruments
Balance Sheet Caption
Interest rate swap contractsOther current assets$12 $— $1,250 $1 $— $1,150 
Interest rate swap contractsOther Assets24 — 1,000 54 — 2,250 
Foreign exchange contractsOther current assets156 — 5,970 12 — 3,183 
Foreign exchange contractsOther Assets49 — 1,601 45 — 2,030 
Foreign exchange contractsAccrued and other current liabilities— 40 2,850 — 217 5,049 
Foreign exchange contractsOther Noncurrent Liabilities— 1 84 — 1 52 
  $241 $41 $12,755 $112 $218 $13,714 
Derivatives Not Designated as Hedging Instruments
Balance Sheet Caption      
Foreign exchange contractsOther current assets$92 $— $6,981 $70 $— $7,260 
Foreign exchange contractsAccrued and other current liabilities— 133 9,690 — 307 11,810 
  $92 $133 $16,671 $70 $307 $19,070 
  $333 $174 $29,426 $182 $525 $32,784 
Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis The following table provides information on the Company’s derivative positions subject to these master netting arrangements as if they were presented on a net basis, allowing for the right of offset by counterparty and cash collateral exchanged per the master agreements and related credit support annexes:
 June 30, 2021December 31, 2020
($ in millions)AssetLiabilityAssetLiability
Gross amounts recognized in the condensed consolidated balance sheet$333 $174 $182 $525 
Gross amounts subject to offset in master netting arrangements not offset in the condensed consolidated balance sheet
(152)(152)(156)(156)
Cash collateral received/posted(13)— — (36)
Net amounts$168 $22 $26 $333 
Location and Amount of Pretax (Gains) Losses of Derivatives
The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value or cash flow hedging relationships (including amounts attributable to discontinued operations):
Sales
Other (income) expense, net (1)
Other comprehensive income (loss)Sales
Other (income) expense, net (1)
Other comprehensive income (loss)
Three Months Ended June 30,Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
($ in millions)202120202021202020212020202120202021202020212020
Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded$11,402 $9,353 $(103)$(387)$1,545 $(2)$22,029 $19,641 $(558)$(325)$1,557 $(200)
(Gain) loss on fair value hedging relationships
Interest rate swap contracts
Hedged items
— — (9)1 — — — — (19)68 — — 
Derivatives designated as hedging instruments
— — (1)(8)— — — — — (76)— — 
Impact of cash flow hedging relationships
Foreign exchange contracts
Amount of gain recognized in OCI on derivatives
— — — — (58)(109)— — — — 121 69 
(Decrease) increase in Sales as a result of AOCI reclassifications
(71)42 — — 71 (42)(183)88 — — 183 (88)
Interest rate contracts
Amount of gain recognized in Other (income) expense, net on derivatives
— — — (1)— — — — (1)(2)— — 
Amount of loss recognized in OCI on derivatives
— — — — — (1)— — — — (1)(2)
(1) Interest expense is a component of Other (income) expense, net.
Income Statement Effects of Derivatives Not Designated as Hedging Instruments
The table below provides information regarding the income statement effects of derivatives not designated as hedging instruments (including amounts attributable to discontinued operations):
Amount of Derivative Pretax (Gain) Loss Recognized in Income
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Derivatives Not Designated as Hedging InstrumentsIncome Statement Caption
Foreign exchange contracts (1)
Other (income) expense, net$167 $49 $217 $(131)
Foreign exchange contracts (2)
Sales14 4 10 (3)
Interest rate contracts (3)
Other (income) expense, net— 9 — 9 
(1) These derivative contracts primarily mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. Amounts in 2021 include a loss on forward exchange contracts entered into in conjunction with the spin-off of Organon.
(2) These derivative contracts serve as economic hedges of forecasted transactions.
(3) These derivative contracts serve as economic hedges against rising treasury rates.
Information on Investments in Debt and Equity Securities
Information on investments in debt and equity securities is as follows:
 June 30, 2021December 31, 2020
 Amortized
Cost		Gross UnrealizedFair
Value		Amortized
Cost		Gross UnrealizedFair
Value
($ in millions)GainsLossesGainsLosses
U.S. government and agency securities$82 $— $— $82 $84 $— $— $84 
Corporate notes and bonds4 — — 4 — — — — 
Foreign government bonds2 — — 2 5 — — 5 
Total debt securities$88 $— $— $88 $89 $— $— $89 
Publicly traded equity securities (1)
1,579 1,787 
Total debt and publicly traded equity securities
$1,667 $1,876 
(1) Unrealized net losses recorded in Other (income) expense, net on equity securities still held at June 30, 2021 were $18 million and $199 million in the second quarter and first six months of 2021, respectively. Unrealized net gains recorded in Other (income) expense, net on equity securities still held at June 30, 2020 were $464 million and $469 million in the second quarter and first six months of 2020, respectively.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
Fair Value Measurements UsingFair Value Measurements Using
 Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
($ in millions)June 30, 2021December 31, 2020
Assets
Investments
Foreign government bonds$— $2 $— $2 $— $5 $— $5 
Publicly traded equity securities409 — — 409 780 — — 780 
 409 2 — 411 780 5 — 785 
Other assets (1)
U.S. government and agency securities82 — — 82 84 — — 84 
Corporate notes and bonds4 — — 4 — — — — 
Publicly traded equity securities1,170 — — 1,170 1,007 — — 1,007 
1,256 — — 1,256 1,091 — — 1,091 
Derivative assets (2)
Forward exchange contracts— 203 — 203 — 90 — 90 
Purchased currency options— 94 — 94 — 37 — 37 
Interest rate swaps— 36 — 36 — 55 — 55 
 — 333 — 333 — 182 — 182 
Total assets$1,665 $335 $— $2,000 $1,871 $187 $— $2,058 
Liabilities
Other liabilities
Contingent consideration$— $— $879 $879 $— $— $841 $841 
Derivative liabilities (2)
Forward exchange contracts— 173 — 173 — 505 — 505 
Written currency options— 1 — 1 — 20 — 20 
— 174 — 174 — 525 — 525 
Total liabilities$— $174 $879 $1,053 $— $525 $841 $1,366 
(1) Investments included in other assets are restricted as to use, including for the payment of benefits under employee benefit plans.
(2)    The fair value determination of derivatives includes the impact of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.
Information About the Changes in Liabilities for Contingent Consideration
Summarized information about the changes in liabilities for contingent consideration associated with business acquisitions is as follows:
Six Months Ended June 30,
($ in millions)20212020
Fair value January 1$841 $767 
Additions— 97 
Changes in estimated fair value (1)
50 40 
Payments— (106)
Other(12)— 
Fair value June 30 (2)(3)
$879 $798 
(1) Recorded in Cost of sales, Research and development expenses, and Other (income) expense, net. Includes cumulative translation adjustments.
(2) Balance at June 30, 2021 includes $297 million recorded as a current liability for amounts expected to be paid within the next 12 months.
(3) At June 30, 2021 and December 31, 2020, $759 million and $711 million, respectively, of the liabilities relate to the termination of the Sanofi Pasteur MSD joint venture in 2016. As part of the termination, Merck recorded a liability for contingent future royalty payments of 11.5% on net sales of all Merck products that were previously sold by the joint venture through December 31, 2024. The fair value of this liability is determined utilizing the estimated amount and timing of projected cash flows using a risk-adjusted discount rate of 8% to present value the cash flows.
v3.21.2
Inventories (Tables)
 6 Months Ended
Jun. 30, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consisted of:
($ in millions)June 30, 2021December 31, 2020
Finished goods$1,778 $1,610 
Raw materials and work in process5,954 5,949 
Supplies175 146 
Total (approximates current cost)7,907 7,705 
Decrease to LIFO cost4 (81)
 $7,911 $7,624 
Recognized as:
Inventories$5,499 $5,554 
Other assets2,412 2,070 
v3.21.2
Equity (Tables)
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Equity
Three Months Ended June 30,
 
  
Common Stock
Other
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
Non-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at April 1, 20203,577 $1,788 $39,697 $48,272 $(6,391)1,053 $(57,161)$95 $26,300 
Net income attributable to Merck & Co., Inc.— — — 3,002 — — — — 3,002 
Other comprehensive loss, net of taxes— — — — (2)— — — (2)
Cash dividends declared on common stock ($0.61 per share)
— — — (1,550)— — — — (1,550)
Share-based compensation plans and other— — (324)— — (5)311 — (13)
Net income attributable to noncontrolling interests
— — — — — — — 8 8 
Distributions attributable to noncontrolling interests— — — — — — — (1)(1)
Balance at June 30, 20203,577 $1,788 $39,373 $49,724 $(6,393)1,048 $(56,850)$102 $27,744 
Balance at April 1, 20213,577 $1,788 $39,613 $48,888 $(6,622)1,046 $(56,722)$94 $27,039 
Net income attributable to Merck & Co., Inc.— — — 1,545 — — — — 1,545 
Other comprehensive income, net of taxes— — — — 1,545 — — — 1,545 
Cash dividends declared on common stock ($0.65 per share)
— — — (1,656)— — — — (1,656)
Treasury stock shares purchased— — — — — 3 (239)— (239)
Spin-off of Organon & Co.— — 4,643 — 449 — — (1)5,091 
Share-based compensation plans and other— — (217)— — (5)279 — 62 
Net income attributable to noncontrolling interests
— — — — — — — 1 1 
Balance at June 30, 20213,577 $1,788 $44,039 $48,777 $(4,628)1,044 $(56,682)$94 $33,388 
Six Months Ended June 30,
 
  
Common Stock
Other
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Loss
 
Treasury Stock
Non-
controlling
Interests		Total
($ and shares in millions except per share amounts)SharesPar ValueSharesCost
Balance at January 1, 20203,577 $1,788 $39,660 $46,602 $(6,193)1,038 $(55,950)$94 $26,001 
Net income attributable to Merck & Co., Inc.— — — 6,221 — — — — 6,221 
Other comprehensive loss, net of taxes— — — — (200)— — — (200)
Cash dividends declared on common stock ($1.22 per share)
— — — (3,099)— — — — (3,099)
Treasury stock shares purchased— — — — — 16 (1,281)— (1,281)
Share-based compensation plans and other— — (287)— — (6)381 — 94 
Net income attributable to noncontrolling interests— — — — — — — 8 8 
Balance at June 30, 20203,577 $1,788 $39,373 $49,724 $(6,393)1,048 $(56,850)$102 $27,744 
Balance at January 1, 20213,577 $1,788 $39,588 $47,362 $(6,634)1,047 $(56,787)$87 $25,404 
Net income attributable to Merck & Co., Inc.— — — 4,724 — — — — 4,724 
Other comprehensive income, net of taxes— — — — 1,557 — — — 1,557 
Cash dividends declared on common stock ($1.30 per share)
— — — (3,309)— — — — (3,309)
Treasury stock shares purchased— — — — — 3 (239)— (239)
Spin-off of Organon & Co.— — 4,643 — 449 — — (1)5,091 
Share-based compensation plans and other— — (192)— — (6)344 — 152 
Net income attributable to noncontrolling interests
— — — — — — — 8 8 
Balance at June 30, 20213,577 $1,788 $44,039 $48,777 $(4,628)1,044 $(56,682)$94 $33,388 
v3.21.2
Pension and Other Postretirement Benefit Plans (Tables)
 6 Months Ended
Jun. 30, 2021
Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Components of net cost of defined benefit plans
The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost of such plans (including certain costs reported as part of discontinued operations) consisted of the following components: 
  Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
($ in millions)U.S.InternationalU.S.InternationalU.S.InternationalU.S.International
Service cost$98 $87 $88 $73 $198 $179 $175 $146 
Interest cost106 30 109 33 202 59 217 68 
Expected return on plan assets(191)(104)(195)(101)(379)(209)(388)(205)
Amortization of unrecognized prior service credit
(11)(4)(12)(3)(20)(9)(25)(6)
Net loss amortization58 38 76 31 142 78 152 62 
Termination benefits52 2 1 — 53 3 4 1 
Curtailments9 (27)— — 16 (27)2 (1)
Settlements— 2 9 2 — 2 9 2 
 $121 $24 $76 $35 $212 $76 $146 $67 
Other Postretirement Benefit Plans  
Defined Benefit Plan Disclosure [Line Items]  
Components of net cost of defined benefit plans
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components: 
  Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Service cost$13 $13 $26 $26 
Interest cost11 14 22 29 
Expected return on plan assets(20)(19)(39)(37)
Amortization of unrecognized prior service credit(25)(22)(50)(45)
Termination benefits37 — 37 — 
Curtailments(27)— (28)(1)
 $(11)$(14)$(32)$(28)
v3.21.2
Other (Income) Expense, Net (Tables)
 6 Months Ended
Jun. 30, 2021
Other Income and Expenses [Abstract]  
Other (Income) Expense, Net
Other (income) expense, net, consisted of: 
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Interest income$(9)$(14)$(20)$(39)
Interest expense202 209 401 421 
Exchange losses114 24 155 78 
Income from investments in equity securities, net (1)
(280)(551)(854)(603)
Net periodic defined benefit plan (credit) cost other than service cost(110)(80)(199)(170)
Other, net(20)25 (41)(12)
 $(103)$(387)$(558)$(325)
(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 ownership interests in investment funds are accounted for on a one quarter lag. The Company estimates that gains of approximately $380 million will be recorded in the third quarter of 2021 from ownership interests in investment funds.
v3.21.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Calculations of Earnings Per Share
The calculations of earnings per share are as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ and shares in millions except per share amounts)2021202020212020
Net Income from Continuing Operations Attributable to Merck & Co., Inc.$1,213 $2,341 $3,958 $4,812 
Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests332 661 766 1,409 
Net Income Attributable to Merck & Co., Inc.$1,545 $3,002 $4,724 $6,221 
Average common shares outstanding2,533 2,527 2,532 2,531 
Common shares issuable (1)
7 9 8 11 
Average common shares outstanding assuming dilution 2,540 2,536 2,540 2,542 
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders:
Income from Continuing Operations$0.48 $0.93 $1.56 $1.90 
Income from Discontinued Operations0.13 0.26 0.30 0.56 
Net Income$0.61 $1.19 $1.87 $2.46 
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders:
Income from Continuing Operations$0.48 $0.92 $1.56 $1.89 
Income from Discontinued Operations0.13 0.26 0.30 0.55 
Net Income$0.61 $1.18 $1.86 $2.45 
(1)Issuable primarily under share-based compensation plans.
v3.21.2
Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Changes in AOCI by Component
Changes in each component of other comprehensive income (loss) are as follows:
Three Months Ended June 30,
($ in millions)DerivativesInvestmentsEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Income (Loss)
Balance April 1, 2020, net of taxes$135 $— $(4,201)$(2,325)$(6,391)
Other comprehensive income (loss) before reclassification adjustments, pretax(110)— (21)63 (68)
Tax23 — 6 16 45 
Other comprehensive income (loss) before reclassification adjustments, net of taxes(87)— (15)79 (23)
Reclassification adjustments, pretax(42)
(1)
— 69 
(3)
— 27 
Tax9 — (15)— (6)
Reclassification adjustments, net of taxes(33)

— 

54 

— 21 
Other comprehensive income (loss), net of taxes(120)— 39 79 (2)
Balance June 30, 2020, net of taxes$15 $— $(4,162)$(2,246)$(6,393)
Balance April 1, 2021, net of taxes$(36)$— $(4,459)$(2,127)$(6,622)
Other comprehensive income (loss) before reclassification adjustments, pretax(59)— 1,767 140 1,848 
Tax13 — (400)(8)(395)
Other comprehensive income (loss) before reclassification adjustments, net of taxes(46)— 1,367 132 1,453 
Reclassification adjustments, pretax71 
(1)
— 55 
(3)
— 126 
Tax(15)— (19)— (34)
Reclassification adjustments, net of taxes56 

— 

36 

— 92 
Other comprehensive income (loss), net of taxes10 — 1,403 132 1,545 
Spin-off of Organon (see Note 2)— — 28 421 449 
Balance June 30, 2021, net of taxes$(26)$— $(3,028)$(1,574)$(4,628)
Six Months Ended June 30,
($ in millions)DerivativesInvestmentsEmployee
Benefit
Plans		Foreign Currency
Translation
Adjustment		Accumulated Other
Comprehensive
Income (Loss)
Balance January 1, 2020, net of taxes$31 $18 $(4,261)$(1,981)$(6,193)
Other comprehensive income (loss) before reclassification adjustments, pretax68 3 (21)(270)(220)
Tax(14)— 11 5 2 
Other comprehensive income (loss) before reclassification adjustments, net of taxes54 3 (10)(265)(218)
Reclassification adjustments, pretax(89)
(1)
(21)
(2)
138 
(3)
— 28 
Tax19 — (29)— (10)
Reclassification adjustments, net of taxes(70)(21)109 — 18 
Other comprehensive income (loss), net of taxes(16)(18)99 (265)(200)
Balance June 30, 2020, net of taxes$15 $— $(4,162)$(2,246)$(6,393)
Balance January 1, 2021, net of taxes$(266)$— $(4,540)$(1,828)$(6,634)
Other comprehensive income (loss) before reclassification adjustments, pretax121 — 1,763 (71)1,813 
Tax(25)— (401)(96)(522)
Other comprehensive income (loss) before reclassification adjustments, net of taxes96 — 1,362 (167)1,291 
Reclassification adjustments, pretax182 
(1)
— 142 
(3)
— 324 
Tax(38)— (20)— (58)
Reclassification adjustments, net of taxes144 — 122 — 266 
Other comprehensive income (loss), net of taxes240 — 1,484 (167)1,557 
Spin-off of Organon (see Note 2)— — 28 421 449 
Balance June 30, 2021, net of taxes$(26)$— $(3,028)$(1,574)$(4,628)
(1) Primarily relates to foreign currency cash flow hedges that were reclassified from AOCI to Sales.
(2) Represents net realized (gains) losses on the sales of available-for-sale debt securities that were reclassified from AOCI to Other (income) expense, net.
(3) Includes net amortization of prior service cost and actuarial gains and losses included in net periodic benefit cost (see Note 11).
v3.21.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Sales of Company's products
Sales of the Company’s products were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
 ($ in millions)U.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotal
Pharmaceutical:
Oncology
Keytruda$2,347 $1,829 $4,176 $2,043 $1,345 $3,388 $4,528 $3,548 $8,076 $3,949 $2,722 $6,672 
Alliance revenue - Lynparza (1)
124 124 248 105 73 178 242 233 475 190 133 323 
Alliance revenue - Lenvima (1)
88 93 181 98 53 151 173 137 310 188 91 279 
Vaccines
Gardasil/Gardasil 9
454 781 1,234 168 488 656 766 1,385 2,151 629 1,124 1,753 
ProQuad/M-M-R II/Varivax
386 130 516 263 115 378 718 246 965 596 217 813 
RotaTeq111 97 208 100 68 168 229 137 366 241 150 391 
Pneumovax 23
100 52 152 21 96 117 173 150 323 203 170 373 
Vaqta22 34 56 17 11 28 47 43 90 47 41 88 
Hospital Acute Care
Bridion197 190 387 107 117 224 364 363 727 250 274 524 
Prevymis37 56 93 28 35 63 72 103 174 55 68 123 
Noxafil14 52 66 6 67 73 29 104 133 14 154 168 
Primaxin— 60 60 1 63 64 — 125 125 1 114 115 
Cancidas1 53 54 (2)45 43 3 108 111 1 98 98 
Invanz(4)52 48 — 43 43 — 104 104 6 102 108 
Zerbaxa(2)1 (1)17 15 32 (4)(5)(9)37 32 69 
Immunology
Simponi— 202 202 — 191 191 — 416 416 — 406 406 
Remicade— 75 75 — 73 73 — 160 160 — 160 160 
Neuroscience
Belsomra14 63 78 22 61 84 32 125 157 49 114 163 
Virology
Isentress/Isentress HD
74 118 192 76 120 196 145 256 401 151 290 441 
Cardiovascular
Alliance revenue-Adempas/Verquvo (2)
81 (7)74 73 6 79 149 — 149 122 11 133 
Adempas— 74 74 — 57 57 — 129 129 — 113 113 
Diabetes
Januvia284 500 784 413 441 854 632 961 1,593 768 860 1,628 
Janumet74 403 477 143 348 490 158 805 962 256 737 993 
Other pharmaceutical (3)
245 301 546 259 289 548 485 644 1,130 513 637 1,149 
Total Pharmaceutical segment sales4,647 5,333 9,980 3,958 4,220 8,178 8,941 10,277 19,218 8,266 8,818 17,083 
Animal Health:
Livestock161 659 821 122 526 648 318 1,322 1,640 284 1,102 1,386 
Companion Animals298 353 651 220 233 453 578 672 1,250 442 486 928 
Total Animal Health segment sales459 1,012 1,472 342 759 1,101 896 1,994 2,890 726 1,588 2,314 
Other segment sales (4)
— — — — — — — — — 23 — 23 
Total segment sales5,106 6,345 11,452 4,300 4,979 9,279 9,837 12,271 22,108 9,015 10,406 19,420 
Other (5)
(6)(44)(50)22 52 74 53 (132)(79)38 182 221 
 $5,100 $6,301 $11,402 $4,322 $5,031 $9,353 $9,890 $12,139 $22,029 $9,053 $10,588 $19,641 
U.S. plus international may not equal total due to rounding.
(1)    Alliance revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 4).
(2)    Alliance revenue represents Merck’s share of profits from sales in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs (see Note 4).
(3)    Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(4)    Represents sales for the Healthcare Services segment. All the businesses in the Healthcare Services segment were fully divested in the first quarter of 2020.
(5)    Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales.
Consolidated revenues by geographic area
Consolidated sales by geographic area where derived are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
United States$5,100 $4,322 $9,890 $9,053 
Europe, Middle East and Africa3,333 2,622 6,569 5,591 
China975 623 1,697 1,269 
Japan661 621 1,291 1,204 
Asia Pacific (other than China and Japan)594 489 1,168 1,015 
Latin America532 423 1,032 875 
Other207 253 382 634 
 $11,402 $9,353 $22,029 $19,641 
Reconciliation of segment profits to income before taxes
A reconciliation of segment profits to Income from Continuing Operations Before Taxes is as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2021202020212020
Segment profits:
Pharmaceutical segment$7,257 $5,832 $13,845 $12,209 
Animal Health segment552 408 1,124 887 
Other segment— — — 2 
Total segment profits7,809 6,240 14,969 13,098 
Other profits(79)43 (113)163 
Unallocated:
Interest income9 14 20 39 
Interest expense(202)(209)(401)(421)
Amortization(357)(599)(871)(988)
Depreciation(332)(367)(673)(733)
Research and development(4,175)(1,956)(6,480)(4,020)
Restructuring costs(82)(82)(380)(152)
Other unallocated, net(874)(343)(1,367)(1,284)
 $1,717 $2,741 $4,704 $5,702 
v3.21.2
Spin-Off of Organon & Co. - Narrative (Details)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 02, 2021
USD ($)
shares
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Distribution from Organon & Co. $ 9,000          
Disposal group, other expense   $ 307 $ 120 $ 556 $ 290  
Stock options, converted awards (in shares) | shares 1,900          
Disposal group, including discontinued operations, liabilities $ 5,100          
Disposal group, including discontinued operations, debt 9,400          
Goodwill 1,400         $ 1,356
Property, plant and equipment, net 981         986
Disposal group, including discontinued operation, cash 929          
Inventories 815         756
Other intangibles, net 519         $ 503
Disposal group, including discontinued operation, other liabilities $ 328          
Spin-off of Organon & Co.   5,091   5,091    
Accumulated Other Comprehensive Loss            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Spin-off of Organon & Co.   449   449    
Foreign Currency Translation Adjustment            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Spin-off of Organon & Co.   421   421    
Employee Benefit Plans            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Spin-off of Organon & Co.   28   28    
Other Paid-In Capital            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Spin-off of Organon & Co.   4,643   4,643    
Restricted Stock Units (RSUs)            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Equity instruments other than options, converted awards (in shares) | shares 1,300          
Performance Share Units (PSUs)            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Equity instruments other than options, converted awards (in shares) | shares 248          
Organon & Co.            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Stock conversion ratio 0.1          
Due from related parties, current   1,600   1,600    
Due to related parties, current   $ 1,000   $ 1,000    
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 25 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          
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          
Organon & Co.            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Face amount of debt $ 9,500          
v3.21.2
Spin-Off of Organon & Co. - Schedule of Disposal Groups in Discontinued Operations (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Jun. 02, 2021
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]            
Sales $ 1,059 $ 1,519 $ 2,512 $ 3,288    
Cost of sales 318 412 789 895    
Selling, general and administrative 431 293 877 657    
Research and development 50 38 103 72    
Restructuring costs 0 1 1 3    
Other (income) expense, net (23) (4) (15) 4    
Operating expenses 776 740 1,755 1,631    
Income from discontinued operations before taxes 283 779 757 1,657    
Tax (benefit) provision (49) 114 (12) 239    
Income from discontinued operations, net of taxes 332 665 769 1,418    
Less: Income of discontinued operations attributable to noncontrolling interests 0 4 3 9    
Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests 332 $ 661 766 $ 1,409    
Cash and cash equivalents           $ 12
Accounts receivable, less allowance for doubtful accounts           1,048
Inventories         $ 815 756
Other current assets           867
Current assets of discontinued operations 0   0     2,683
Property, plant and equipment, net         981 986
Goodwill         1,400 1,356
Other intangibles, net         $ 519 503
Other assets           330
Noncurrent Assets of Discontinued Operations 0   0     3,175
Trade accounts payable           267
Accrued and other current liabilities           841
Income taxes payable           (22)
Current liabilities of discontinued operations 0   0     1,086
Deferred income taxes           10
Other noncurrent liabilities           176
Noncurrent Liabilities of Discontinued Operations $ 0   $ 0     $ 186
v3.21.2
Acquisitions, Research Collaborations and License Agreements - Acquisitions (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 16, 2020
Apr. 30, 2021
Mar. 31, 2021
Jan. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent consideration         $ 841.0 $ 798.0 $ 879.0 $ 798.0 $ 879.0 $ 798.0 $ 841.0 $ 767.0
Goodwill         18,882.0   18,873.0   18,873.0   18,882.0  
Research and development             4,321.0 2,085.0 6,732.0 4,260.0    
Inventories         5,554.0   5,499.0   5,499.0   5,554.0  
Payments to Acquire Productive Assets                 2,068.0 1,553.0    
Changes in estimated fair value                 50.0 40.0    
OncoImmune                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Payment to acquire business         423.0              
Other assets and liabilities, net         (22.0)           $ (22.0)  
Payments to Acquire Investments         $ 50.0              
Equity Method Investment, Ownership Percentage         20.00%           20.00%  
Investments         $ 33.0           $ 33.0  
Premium on shares acquired         $ 17.0              
Research and Development Asset Acquired Other than Through Business Combination, Written-off                     462.0  
COVID-19                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Charges related to program discontinuation             $ 37.0   $ 207.0      
Pandion Therapeutics                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Payment to acquire business   $ 1,900.0                    
Transaction costs   147.0                    
Other assets and liabilities, net   (156.0)                    
Research and development   $ 1,700.0                    
Themis                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Payment to acquire business           366.0            
Contingent consideration           85.0   85.0   85.0    
IPR&D           113.0   113.0   113.0    
Cash and cash equivalents           59.0   59.0   59.0    
Goodwill           239.0   239.0   239.0    
Other assets and liabilities, net           (32.0)   (32.0)   (32.0)    
Deferred tax assets           72.0   72.0   72.0    
Contingent consideration, maximum           740.0   740.0   740.0    
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High                     450.0  
Themis | COVID-19                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)                     90.0  
Changes in estimated fair value                     $ 45.0  
ArQule                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Payment to acquire business $ 2,700.0                      
IPR&D 2,280.0                      
Share-based compensation payments attributable to precombination service 138.0                      
Transaction costs 95.0                      
Cash and cash equivalents 145.0                      
Goodwill 512.0                      
Other assets and liabilities, net 34.0                      
Deferred income tax liabilities 361.0                      
Intangible assets $ 80.0                      
Development Milestones | Themis                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent consideration, maximum           60.0   60.0   60.0    
Sales-Based Milestones | Themis                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent consideration, maximum           194.0   194.0   194.0    
Regulatory Milestones | Themis                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent consideration, maximum           $ 196.0   $ 196.0   $ 196.0    
Gilead Sciences | oral and injectable formulations programs | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
proft share     40.00%                  
profit share counterparty     60.00%                  
Gilead Sciences | oral formulation | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
proft share     35.00%                  
profit share counterparty     65.00%                  
Sales threshold     $ 2,000.0                  
Gilead Sciences | injectable formulation | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
proft share     35.00%                  
profit share counterparty     65.00%                  
Sales threshold     $ 3,500.0                  
Artiva Biotherapeutics, Inc. | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Upfront and milestone payments       $ 30.0                
Upfront and milestone payments to be made       $ 15.0                
Artiva Biotherapeutics, Inc. | Minimum | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Royalty Rate, Percentage       7.00%                
Artiva Biotherapeutics, Inc. | Maximum | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Royalty Rate, Percentage       14.00%                
Artiva Biotherapeutics, Inc. | Development Milestones | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent milestone payments collaborative arrangement       $ 217.5                
Artiva Biotherapeutics, Inc. | Sales-Based Milestones | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent milestone payments collaborative arrangement       1,050.0                
Artiva Biotherapeutics, Inc. | Regulatory Milestones | Licensing Agreements                        
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]                        
Contingent milestone payments collaborative arrangement       $ 570.0                
v3.21.2
Acquisitions, Research Collaborations and License Agreements - Values of Assets Acquired and Liabilities Assumed, ArQule (Details)
$ in Millions
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jan. 16, 2020
USD ($)
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]      
Goodwill $ 18,873 $ 18,882  
ArQule      
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]      
Cash and cash equivalents     $ 145
IPR&D     2,280
Intangible assets     80
Deferred income tax liabilities     (361)
Other assets and liabilities, net     34
Total identifiable net assets     2,178
Goodwill     512
Consideration transferred     $ 2,690
ArQule | Measurement Input, Discount Rate      
Acquisitions Research Collaborations And License Agreements Transactions [Line Items]      
Present value discount rate     0.125
v3.21.2
Collaborative Arrangements - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2021
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Research and development   $ 4,321 $ 2,085 $ 6,732 $ 4,260  
Other liabilities, noncurrent   9,872   9,872   $ 12,306
Amortization       871 $ 988  
Lynparza | Other Assets            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Finite-lived intangible assets   1,200   1,200    
Lenvima | Other Assets            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Finite-lived intangible assets   1,000   1,000    
Adempas | Other intangible assets            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Finite-lived intangible assets   920   920    
Verquvo            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Amortization       153    
Verquvo | Other intangible assets            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Finite-lived intangible assets   75   75    
AstraZeneca | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Lynparza            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Potential Future Milestone Payments Sales-Based   2,700   2,700    
Milestone Payments Accrued Sales Based   400   400    
Potential Future Milestone Payments Regulatory   1,400   1,400    
Eisai            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
License option payment related to collaborative arrangement $ 125          
Eisai | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Lenvima            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Potential Future Milestone Payments Sales-Based   2,600   2,600    
Milestone Payments Sales-Based       200    
Milestone Payments Accrued Sales Based   600   600    
Potential Future Milestone Payments Regulatory   125   125    
Bayer AG | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Liabilities   400   400    
Milestone Payments Accrued Sales Based   $ 400   $ 400    
v3.21.2
Collaborative Arrangements - Schedule of Transactions (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Sales $ 11,402 $ 9,353 $ 22,029 $ 19,641  
Cost of sales 3,104 2,747 6,303 5,576  
Selling, general and administrative 2,281 2,085 4,468 4,276  
Research and development 4,321 2,085 6,732 4,260  
Payables, current 21,906   21,906   $ 27,327
Other current assets | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Receivables from Bayer included in Other current assets 258   258   215
Other current assets | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Receivables from Bayer included in Other current assets 212   212   157
Other current assets | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Receivables from Bayer included in Other current assets 65   65   65
Accounts payable and accrued liabilities | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Payables, current 418   418   423
Accounts payable and accrued liabilities | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Payables, current 600   600   335
Other Noncurrent Liabilities | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Payables to Bayer included in Other Noncurrent Liabilities 0   0   600
Other Noncurrent Liabilities | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Payables to Bayer included in Other Noncurrent Liabilities 400   400   $ 0
Revenue | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Alliance revenue - profit sharing 256 178 489 323  
Revenue | AstraZeneca | Collaborative Arrangement | Alliance revenue - Lynparza (1)          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Alliance revenue - profit sharing 248 178 475 323  
Revenue | AstraZeneca | Collaborative Arrangement | Alliance revenue - Koselugo          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Alliance revenue - profit sharing 8 0 14 0  
Revenue | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Alliance revenue - profit sharing 181 151 310 279  
Revenue | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Alliance revenue - profit sharing 74 79 149 133  
Sales 149 136 279 246  
Revenue | Bayer AG | Collaborative Arrangement | Adempas          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Collaborative Arrangement, Sales, Net 74 57 129 113  
Revenue | Bayer AG | Collaborative Arrangement | Verquvo          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Collaborative Arrangement, Sales, Net 1 0 1 0  
Cost of sales | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Cost of sales 42 137 84 164  
Cost of sales | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Cost of sales 47 135 94 170  
Cost of sales | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Cost of sales 39 28 229 57  
Amortization of intangible assets 153        
Selling, general and administrative | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Selling, general and administrative 43 39 83 72  
Selling, general and administrative | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Selling, general and administrative 31 19 54 31  
Selling, general and administrative | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Selling, general and administrative 32 17 58 28  
Research and development | AstraZeneca | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Research and development 31 37 60 73  
Research and development | Eisai | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Research and development 57 56 121 120  
Research and development | Bayer AG | Collaborative Arrangement          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Research and development $ 13 $ 16 $ 20 $ 41  
v3.21.2
Restructuring - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]          
Cumulative costs since program inception $ 2,300   $ 2,300    
Estimate of cumulative pre tax costs that will result in cash outlays     70.00%    
Estimate of cumulative pre tax costs that will be noncash     30.00%    
Expected restructuring and related cost 3,000   $ 3,000    
Total pretax restructuring costs $ 128 $ 149 $ 462 $ 315  
Forecast          
Restructuring Cost and Reserve [Line Items]          
Expected restructuring and related cost         $ 700
v3.21.2
Restructuring - Charges Activities by Type of Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs $ 128 $ 149 $ 462 $ 315
Separation Costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 64 35 293 82
Accelerated Depreciation        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 19 73 38 126
Other        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 45 41 131 107
Cost of sales        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 38 25 65 93
Cost of sales | Separation Costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Cost of sales | Accelerated Depreciation        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 11 31 21 56
Cost of sales | Other        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 27 (6) 44 37
Selling, general and administrative        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 2 11 4 22
Selling, general and administrative | Separation Costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Selling, general and administrative | Accelerated Depreciation        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 2 11 4 22
Selling, general and administrative | Other        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Research and development        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 6 31 13 48
Research and development | Separation Costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Research and development | Accelerated Depreciation        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 6 31 13 48
Research and development | Other        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Restructuring costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 82 82 380 152
Restructuring costs | Separation Costs        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 64 35 293 82
Restructuring costs | Accelerated Depreciation        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs 0 0 0 0
Restructuring costs | Other        
Restructuring Cost and Reserve [Line Items]        
Total pretax restructuring costs $ 18 $ 47 $ 87 $ 70
v3.21.2
Restructuring - Activities by Program (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Restructuring Reserve [Roll Forward]        
Restructuring reserve, beginning balance     $ 586  
Expense $ 128 $ 149 462 $ 315
(Payments) receipts, net     (387)  
Non-cash activity     10  
Restructuring reserve, ending balance 671   671  
Separation Costs        
Restructuring Reserve [Roll Forward]        
Restructuring reserve, beginning balance     567  
Expense 64 35 293 82
(Payments) receipts, net     (230)  
Non-cash activity     0  
Restructuring reserve, ending balance 630   630  
Accelerated Depreciation        
Restructuring Reserve [Roll Forward]        
Restructuring reserve, beginning balance     0  
Expense 19 73 38 126
(Payments) receipts, net     0  
Non-cash activity     (38)  
Restructuring reserve, ending balance 0   0  
Other        
Restructuring Reserve [Roll Forward]        
Restructuring reserve, beginning balance     19  
Expense 45 $ 41 131 $ 107
(Payments) receipts, net     (157)  
Non-cash activity     48  
Restructuring reserve, ending balance $ 41   $ 41  
v3.21.2
Financial Instruments - Narrative (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
interest_rate_swap
Mar. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
interest_rate_swap
Jun. 30, 2020
USD ($)
Jan. 31, 2021
USD ($)
interest_rate_swap
Dec. 31, 2020
USD ($)
Derivative [Line Items]            
Pretax net unrealized losses on derivatives maturing within next 12 months estimated to be reclassified from AOCI to sales     $ 52,000,000      
Equity investments without readily determinable fair values $ 694,000,000   694,000,000 $ 487,000,000    
Unrealized gains recognized on investments in equity securities without readily determinable fair value     75,000,000 18,000,000    
Cumulative unrealized gains on investments 244,000,000   244,000,000      
Cumulative unrealized losses on investments 8,000,000   8,000,000      
Payments of contingent consideration     0 106,000,000    
Fair value of loans payable and long-term debt, including current portion 29,500,000,000   29,500,000,000     $ 36,000,000,000.0
Debt, carrying amount 26,500,000,000   26,500,000,000     31,800,000,000
Accounts Receivable, Sale 2,400,000,000 $ 2,100,000,000        
Cash collateral received from counterparties 13,000,000   13,000,000     0
Cash collateral advanced to counterparties 0   0     36,000,000
Total swap notional amount 29,426,000,000   29,426,000,000     32,784,000,000
Unrealized losses recognized on investments in equity securities without readily determinable fair values     1,000,000 $ 3,000,000    
Level 2            
Derivative [Line Items]            
Cash equivalents 7,500,000,000   7,500,000,000     6,800,000,000
Derivatives Designated as Hedging Instruments            
Derivative [Line Items]            
Total swap notional amount 12,755,000,000   $ 12,755,000,000     13,714,000,000
Derivatives Designated as Hedging Instruments | Maximum            
Derivative [Line Items]            
Maximum average period of maturities of contracts in years (less than)     2 years      
Derivatives Not Designated as Hedging Instruments            
Derivative [Line Items]            
Total swap notional amount $ 16,671,000,000   $ 16,671,000,000     $ 19,070,000,000
Derivatives Not Designated as Hedging Instruments | Maximum            
Derivative [Line Items]            
Maximum average period of maturities of contracts in years (less than)     1 year      
3.875% Notes Due 2021 [Member]            
Derivative [Line Items]            
Face amount of debt         $ 1,150,000,000  
Stated interest rate (as percent)         3.875%  
Interest rate swap contracts            
Derivative [Line Items]            
Number of interest rate swaps held (in interest rate swaps) | interest_rate_swap 9   9   5  
Total swap notional amount         $ 1,150,000,000  
v3.21.2
Financial Instruments - Effect of Net Investment Hedges (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Foreign exchange contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income $ (3) $ 8 $ (28) $ 5
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 (4) (4) (8) (11)
Euro-denominated notes        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Pretax (Gain) Loss Recognized in Other Comprehensive Income 45 72 (122) 21
Euro-denominated notes | Other (income) expense, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Pretax (Gain) Loss Recognized in Other (income) expense, net for Amounts Excluded from Effectiveness Testing $ 0 $ 0 $ 0 $ 0
v3.21.2
Financial Instruments - Summary of Interest Rate Swaps Held (Details)
Jun. 30, 2021
USD ($)
interest_rate_swap
Jan. 31, 2021
USD ($)
interest_rate_swap
Dec. 31, 2020
USD ($)
Derivative [Line Items]      
Total swap notional amount $ 29,426,000,000   $ 32,784,000,000
Interest rate swap contracts      
Derivative [Line Items]      
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap 9 5  
Total swap notional amount   $ 1,150,000,000  
2.40% notes due 2022 | Interest rate swap contracts      
Derivative [Line Items]      
Stated interest rate (as percent) 2.40%    
Par Value of Debt $ 1,000,000,000    
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap 4    
Total swap notional amount $ 1,000,000,000    
2.35% notes due 2022 | Interest rate swap contracts      
Derivative [Line Items]      
Stated interest rate (as percent) 2.35%    
Par Value of Debt $ 1,250,000,000    
Number of Interest Rate Swaps Held (in interest rate swaps) | interest_rate_swap 5    
Total swap notional amount $ 1,250,000,000    
v3.21.2
Financial Instruments - Fair Value Hedges (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Loans payable and current portion of long-term debt    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Carrying Amount of Hedged Liabilities $ 1,261 $ 1,150
Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount 11 0
Long-Term Debt    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Carrying Amount of Hedged Liabilities 1,022 2,301
Cumulative Amount of Fair Value Hedging Adjustment Increase (Decrease) Included in the Carrying Amount $ 23 $ 53
v3.21.2
Financial Instruments - Fair Value of Derivatives Segregated between those Derivatives that are Designated as Hedging Instruments and those that are Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset $ 333 $ 182
Fair Value of Derivative, Liability 174 525
U.S Dollar Notional Amount 29,426 32,784
Derivatives Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 241 112
Fair Value of Derivative, Liability 41 218
U.S Dollar Notional Amount 12,755 13,714
Derivatives Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 92 70
Fair Value of Derivative, Liability 133 307
U.S Dollar Notional Amount 16,671 19,070
Interest Rate Contract | Derivatives Designated as Hedging Instruments | Other current assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 12 1
U.S Dollar Notional Amount 1,250 1,150
Interest Rate Contract | Derivatives Designated as Hedging Instruments | Other Assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 24 54
U.S Dollar Notional Amount 1,000 2,250
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other current assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 156 12
U.S Dollar Notional Amount 5,970 3,183
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 49 45
U.S Dollar Notional Amount 1,601 2,030
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Accrued and other current liabilities    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Liability 40 217
U.S Dollar Notional Amount 2,850 5,049
Foreign exchange contracts | Derivatives Designated as Hedging Instruments | Other Noncurrent Liabilities    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Liability 1 1
U.S Dollar Notional Amount 84 52
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Other current assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Asset 92 70
U.S Dollar Notional Amount 6,981 7,260
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments | Accrued and other current liabilities    
Derivatives, Fair Value [Line Items]    
Fair Value of Derivative, Liability 133 307
U.S Dollar Notional Amount $ 9,690 $ 11,810
v3.21.2
Financial Instruments - Information on Derivative Positions Subject to Master Netting Arrangements as if they were Presented on a Net Basis (Details) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross amounts recognized in the consolidated balance sheet, asset $ 333,000,000 $ 182,000,000
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, asset (152,000,000) (156,000,000)
Cash collateral received, asset (13,000,000) 0
Net amounts, asset 168,000,000 26,000,000
Gross amounts recognized in the consolidated balance sheet, liability 174,000,000 525,000,000
Gross amount subject to offset in master netting arrangements not offset in the condensed balance sheet, liability (152,000,000) (156,000,000)
Cash collateral received, liability 0 (36,000,000)
Net amounts, liability $ 22,000,000 $ 333,000,000
v3.21.2
Financial Instruments - Location and Amount of Pretax (Gains) Losses of Derivatives (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]        
Sales $ 11,402 $ 9,353 $ 22,029 $ 19,641
Other (income) expense, net (103) (387) (558) (325)
Other comprehensive income (loss) 1,545 (2) 1,557 (200)
Interest rate swap contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain recognized in OCI on derivatives 0 (1) (1) (2)
Interest rate swap contracts | Other (income) expense, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Hedged items (9) 1 (19) 68
Derivatives designated as hedging instruments (1) (8) 0 (76)
Amount of gain recognized in Other (income) expense, net on derivatives 0 (1) (1) (2)
Foreign exchange contracts        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain recognized in OCI on derivatives (58) (109) 121 69
(Decrease) increase in Sales as a result of AOCI reclassifications 71 (42) 183 (88)
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 $ (71) $ 42 $ (183) $ 88
v3.21.2
Financial Instruments - Income Statement Effects on Derivatives Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Foreign currency | Other (income) expense, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Derivative Pretax (Gain) Loss Recognized in Income $ 167 $ 49 $ 217 $ (131)
Forecasted transactions | Sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Derivative Pretax (Gain) Loss Recognized in Income 14 4 10 (3)
Interest Rate Contract | Other (income) expense, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Derivative Pretax (Gain) Loss Recognized in Income $ 0 $ 9 $ 0 $ 9
v3.21.2
Financial Instruments - Information on Available-for-sale Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]          
Debt securities, amortized cost $ 88   $ 88   $ 89
Debt securities, unrealized gains 0   0   0
Debt securities, unrealized losses 0   0   0
Debt securities, fair value 88   88   89
Publicly traded equity securities, fair value 1,579   1,579   1,787
Total debt and publicly traded equity securities, fair value 1,667   1,667   1,876
Unrealized net losses (gains) (18) $ 464 (199) $ 469  
Unrealized losses recognized on investments in equity securities without readily determinable fair values     1 $ 3  
U.S. government and agency securities          
Debt Securities, Available-for-sale [Line Items]          
Debt securities, amortized cost 82   82   84
Debt securities, unrealized gains 0   0   0
Debt securities, unrealized losses 0   0   0
Debt securities, fair value 82   82   84
Foreign government bonds          
Debt Securities, Available-for-sale [Line Items]          
Debt securities, amortized cost 2   2   5
Debt securities, unrealized gains 0   0   0
Debt securities, unrealized losses 0   0   0
Debt securities, fair value 2   2   5
Corporate notes and bonds          
Debt Securities, Available-for-sale [Line Items]          
Debt securities, amortized cost 4   4   0
Debt securities, unrealized gains 0   0   0
Debt securities, unrealized losses 0   0   0
Debt securities, fair value $ 4   $ 4   $ 0
v3.21.2
Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Assets        
Investments $ 88 $ 89    
Publicly traded equity securities 1,579 1,787    
Derivative assets 333 182    
Liabilities        
Contingent consideration 879 841 $ 798 $ 767
Derivative liabilities 174 525    
Foreign government bonds        
Assets        
Investments 2 5    
Corporate notes and bonds        
Assets        
Investments 4 0    
U.S. government and agency securities        
Assets        
Investments 82 84    
Fair Value, Measurements, Recurring        
Assets        
Investments 411 785    
Other assets 1,256 1,091    
Derivative assets 333 182    
Total assets 2,000 2,058    
Liabilities        
Contingent consideration 879 841    
Derivative liabilities 174 525    
Total liabilities 1,053 1,366    
Fair Value, Measurements, Recurring | Foreign exchange contracts        
Assets        
Derivative assets 203 90    
Liabilities        
Derivative liabilities 173 505    
Fair Value, Measurements, Recurring | Interest rate swap contracts        
Assets        
Derivative assets 36 55    
Fair Value, Measurements, Recurring | Currency options        
Assets        
Derivative assets 94 37    
Liabilities        
Derivative liabilities 1 20    
Fair Value, Measurements, Recurring | Level 1        
Assets        
Investments 409 780    
Other assets 1,256 1,091    
Derivative assets 0 0    
Total assets 1,665 1,871    
Liabilities        
Contingent consideration 0 0    
Derivative liabilities 0 0    
Total 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    
Fair Value, Measurements, Recurring | Level 1 | Currency options        
Assets        
Derivative assets 0 0    
Liabilities        
Derivative liabilities 0 0    
Fair Value, Measurements, Recurring | Level 2        
Assets        
Investments 2 5    
Other assets 0 0    
Derivative assets 333 182    
Total assets 335 187    
Liabilities        
Contingent consideration 0 0    
Derivative liabilities 174 525    
Total liabilities 174 525    
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts        
Assets        
Derivative assets 203 90    
Liabilities        
Derivative liabilities 173 505    
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap contracts        
Assets        
Derivative assets 36 55    
Fair Value, Measurements, Recurring | Level 2 | Currency options        
Assets        
Derivative assets 94 37    
Liabilities        
Derivative liabilities 1 20    
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 879 841    
Derivative liabilities 0 0    
Total liabilities 879 841    
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    
Fair Value, Measurements, Recurring | Level 3 | Currency options        
Assets        
Derivative assets 0 0    
Liabilities        
Derivative liabilities 0 0    
Fair Value, Measurements, Recurring | Foreign government bonds        
Assets        
Investments 2 5    
Fair Value, Measurements, Recurring | Foreign government bonds | Level 1        
Assets        
Investments 0 0    
Fair Value, Measurements, Recurring | Foreign government bonds | Level 2        
Assets        
Investments 2 5    
Fair Value, Measurements, Recurring | Foreign government bonds | Level 3        
Assets        
Investments 0 0    
Fair Value, Measurements, Recurring | Corporate notes and bonds        
Assets        
Other assets 4 0    
Fair Value, Measurements, Recurring | Corporate notes and bonds | Level 1        
Assets        
Other assets 4 0    
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    
Fair Value, Measurements, Recurring | U.S. government and agency securities        
Assets        
Other assets 82 84    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 1        
Assets        
Other assets 82 84    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 2        
Assets        
Other assets 0 0    
Fair Value, Measurements, Recurring | U.S. government and agency securities | Level 3        
Assets        
Other assets 0 0    
Fair Value, Measurements, Recurring | Publicly traded equity securities        
Assets        
Publicly traded equity securities 409 780    
Other assets 1,170 1,007    
Fair Value, Measurements, Recurring | Publicly traded equity securities | Level 1        
Assets        
Publicly traded equity securities 409 780    
Other assets 1,170 1,007    
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    
v3.21.2
Financial Instruments - Information About Changes in Liabilities for Contingent Consideration (Details)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Fair value, beginning balance $ 841 $ 767 $ 767
Additions 0 97  
Changes in estimated fair value 50 40  
Payments 0 (106)  
Other (12) 0  
Fair value, ending balance 879 798 841
Current liability 297    
Contingent consideration 879 $ 798 841
Sanofi Pasteur      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Fair value, beginning balance 711    
Fair value, ending balance 759   711
Contingent consideration $ 759   $ 711
Contingent consideration, measurement input, discount rate (as percent) 0.115    
Measurement Input, Discount Rate | Sanofi Pasteur      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Contingent consideration, measurement input, discount rate (as percent) 0.08    
v3.21.2
Inventories - Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Finished goods $ 1,778 $ 1,610
Raw materials and work in process 5,954 5,949
Supplies 175 146
Total (approximates current cost) 7,907 7,705
Decrease to LIFO cost 4 (81)
Total current and noncurrent inventories 7,911 7,624
Recognized as:    
Inventories 5,499 5,554
Other assets $ 2,412 $ 2,070
v3.21.2
Inventories - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Inventory [Line Items]    
Inventories classified in Other assets $ 2,412 $ 2,070
Inventories Not Expected to be Sold Within One Year    
Inventory [Line Items]    
Inventories classified in Other assets 1,700 1,800
Inventories Produced in Preparation for Product Launches    
Inventory [Line Items]    
Inventories classified in Other assets $ 681 $ 279
v3.21.2
Intangible Assets, Goodwill and Other (Details) - USD ($)
$ in Millions
Jun. 02, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Goodwill $ 1,400 $ 1,356
Other intangibles, net 519 $ 503
Technology Rights    
Finite-Lived Intangible Assets [Line Items]    
Other intangibles, net 394  
License    
Finite-Lived Intangible Assets [Line Items]    
Other intangibles, net $ 125  
v3.21.2
Contingencies - Narrative (Details)
$ in Millions
 1 Months Ended 6 Months Ended
Mar. 31, 2014
Case
Jun. 30, 2021
USD ($)
Claim
Case
Dec. 31, 2020
USD ($)
Legal Defense Costs      
Loss Contingencies [Line Items]      
Legal defense costs reserve | $   $ 230 $ 235
Zetia antitrust litigation      
Loss Contingencies [Line Items]      
Loss contingency, pending claims, number (in legal matters) | Claim   35  
Fosamax      
Loss Contingencies [Line Items]      
Loss contingency, pending claims, number (in legal matters)   3,475  
Fosamax | Femur Fracture Litigation | Federal      
Loss Contingencies [Line Items]      
Loss contingency, claims dismissed, number (in legal matters) 650    
Loss contingency, claims on appeal, number (in legal matters) 515    
Januvia      
Loss Contingencies [Line Items]      
Loss contingency, pending claims, number (in legal matters) | Claim   1,470  
Januvia | Other state courts      
Loss Contingencies [Line Items]      
Loss contingency, pending claims, number (in legal matters) | Claim   6  
Januvia | Cases Company Agreed To Toll Statute Of Limitations      
Loss Contingencies [Line Items]      
Loss contingency, pending claims, number (in legal matters) | Claim   50  
Bridion | Patents      
Loss Contingencies [Line Items]      
Loss Contingency, Claims Settled, Number   2  
Januvia and Janumet | Patents      
Loss Contingencies [Line Items]      
Loss Contingency, Claims Settled, Number   10  
v3.21.2
Equity - Rollforward Reconciliations (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Shares, beginning balance (in shares)     3,577,103,522  
Equity, beginning balance $ 27,039 $ 26,300 $ 25,404 $ 26,001
Net income attributable to Merck & Co., Inc. 1,545 3,002 4,724 6,221
Other comprehensive income (loss), net of taxes 1,545 (2) 1,557 (200)
Cash dividends declared on common stock (1,656) (1,550) (3,309) (3,099)
Treasury stock shares purchased (239)   (239) (1,281)
Spin-off of Organon & Co. 5,091   5,091  
Share-based compensation plans and other 62 (13) 152 94
Distributions attributable to noncontrolling interests   (1)    
Net income (loss) attributable to noncontrolling interests $ 1 8 $ 8 8
Shares, ending balance (in shares) 3,577,103,522   3,577,103,522  
Equity, ending balance $ 33,388 $ 27,744 $ 33,388 $ 27,744
Cash dividends declared on common stock (in dollars per share) $ 0.65 $ 0.61 $ 1.30 $ 1.22
   Common Stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Shares, beginning balance (in shares) 3,577,000,000 3,577,000,000 3,577,000,000 3,577,000,000
Equity, beginning balance $ 1,788 $ 1,788 $ 1,788 $ 1,788
Shares, ending balance (in shares) 3,577,000,000 3,577,000,000 3,577,000,000 3,577,000,000
Equity, ending balance $ 1,788 $ 1,788 $ 1,788 $ 1,788
Other Paid-In Capital        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Equity, beginning balance 39,613 39,697 39,588 39,660
Treasury stock shares purchased       0
Spin-off of Organon & Co. 4,643   4,643  
Share-based compensation plans and other (217) (324) (192) (287)
Equity, ending balance 44,039 39,373 44,039 39,373
Retained Earnings        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Equity, beginning balance 48,888 48,272 47,362 46,602
Net income attributable to Merck & Co., Inc. 1,545 3,002 4,724 6,221
Cash dividends declared on common stock (1,656) (1,550) (3,309) (3,099)
Equity, ending balance 48,777 49,724 48,777 49,724
Accumulated Other Comprehensive Loss        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Equity, beginning balance (6,622) (6,391) (6,634) (6,193)
Other comprehensive income (loss), net of taxes 1,545 (2) 1,557 (200)
Spin-off of Organon & Co. 449   449  
Equity, ending balance $ (4,628) $ (6,393) $ (4,628) $ (6,393)
  Treasury Stock        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Shares, beginning balance (in shares) 1,046,000,000 1,053,000,000 1,047,000,000 1,038,000,000
Equity, beginning balance $ (56,722) $ (57,161) $ (56,787) $ (55,950)
Treasury stock shares purchased (in shares) 3,000,000   3,000,000 16,000,000
Treasury stock shares purchased $ (239)   $ (239) $ (1,281)
Share-based compensation plans and other (in shares) (5,000,000) (5,000,000) (6,000,000) (6,000,000)
Share-based compensation plans and other $ 279 $ 311 $ 344 $ 381
Shares, ending balance (in shares) 1,044,000,000 1,048,000,000 1,044,000,000 1,048,000,000
Equity, ending balance $ (56,682) $ (56,850) $ (56,682) $ (56,850)
Non- controlling Interests        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Equity, beginning balance 94 95 87 94
Spin-off of Organon & Co. (1)   (1)  
Distributions attributable to noncontrolling interests   (1)    
Net income (loss) attributable to noncontrolling interests 1 8 8 8
Equity, ending balance $ 94 $ 102 $ 94 $ 102
v3.21.2
Pension and Other Postretirement Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 02, 2021
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]          
Defined Benefit Plan, Benefit Obligation, Divestiture $ 99        
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Remeasurement due to Settlement $ 1,700        
Other Postretirement Benefit Plans          
Defined Benefit Plan Disclosure [Line Items]          
Service cost   $ 13 $ 13 $ 26 $ 26
Interest cost   11 14 22 29
Expected return on plan assets   (20) (19) (39) (37)
Amortization of unrecognized prior service credit   (25) (22) (50) (45)
Termination benefits   37 0 37 0
Curtailments   (27) 0 (28) (1)
Net periodic benefit cost   (11) (14) (32) (28)
U.S. | Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Service cost   98 88 198 175
Interest cost   106 109 202 217
Expected return on plan assets   (191) (195) (379) (388)
Amortization of unrecognized prior service credit   (11) (12) (20) (25)
Net loss amortization   58 76 142 152
Termination benefits   52 1 53 4
Curtailments   9 0 16 2
Settlements   0 9 0 9
Net periodic benefit cost   121 76 212 146
International | Pension Plans          
Defined Benefit Plan Disclosure [Line Items]          
Service cost   87 73 179 146
Interest cost   30 33 59 68
Expected return on plan assets   (104) (101) (209) (205)
Amortization of unrecognized prior service credit   (4) (3) (9) (6)
Net loss amortization   38 31 78 62
Termination benefits   2 0 3 1
Curtailments   (27) 0 (27) (1)
Settlements   2 2 2 2
Net periodic benefit cost   $ 24 $ 35 $ 76 $ 67
v3.21.2
Other (Income) Expense, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Component of Other Income / Expense of Nonoperating [Line Items]          
Interest income   $ (9) $ (14) $ (20) $ (39)
Interest expense   202 209 401 421
Exchange losses   114 24 155 78
Income from investments in equity securities, net   (280) (551) (854) (603)
Net periodic defined benefit plan (credit) cost other than service cost   (110) (80) (199) (170)
Other, net   (20) 25 (41) (12)
Other (income) expense, net   (103) (387) (558) (325)
Unrealized net losses (gains)   $ (18) $ 464 $ (199) $ 469
Forecast          
Component of Other Income / Expense of Nonoperating [Line Items]          
Unrealized net losses (gains) $ 380        
v3.21.2
Other (Income) Expense, Net Other (Income) Expense, Net - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Component of Other Income / Expense of Nonoperating [Line Items]    
Interest paid $ 363 $ 387
v3.21.2
Taxes on Income (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Tax Examination [Line Items]        
Effective income tax rate (as percent) 29.30% 14.40% 15.80% 15.60%
Internal Revenue Service (IRS) | Domestic Tax Authority        
Income Tax Examination [Line Items]        
Tax benefit recognized related to settlement     $ 236  
Income taxes paid     190  
Internal Revenue Service (IRS) | Domestic Tax Authority | Continuing Operations        
Income Tax Examination [Line Items]        
Tax benefit recognized related to settlement     207  
Income taxes paid     172  
Internal Revenue Service (IRS) | Domestic Tax Authority | Discontinued Operations        
Income Tax Examination [Line Items]        
Tax benefit recognized related to settlement     29  
Income taxes paid     $ 18  
v3.21.2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Earnings Per Share [Abstract]        
Net Income from Continuing Operations Attributable to Merck & Co., Inc. $ 1,213 $ 2,341 $ 3,958 $ 4,812
Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests 332 661 766 1,409
Net income attributable to Merck & Co., Inc. $ 1,545 $ 3,002 $ 4,724 $ 6,221
Average common shares outstanding 2,533 2,527 2,532 2,531
Common shares issuable 7 9 8 11
Average common shares outstanding assuming dilution 2,540 2,536 2,540 2,542
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders:        
Income from Continuing Operations $ 0.48 $ 0.93 $ 1.56 $ 1.90
Income from Discontinued Operations 0.13 0.26 0.30 0.56
Net Income 0.61 1.19 1.87 2.46
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders:        
Income from Continuing Operations 0.48 0.92 1.56 1.89
Income from Discontinued Operations 0.13 0.26 0.30 0.55
Net Income $ 0.61 $ 1.18 $ 1.86 $ 2.45
Common shares issuable under share-based compensation plans excluded from diluted earnings per common share because the effect would have been antidilutive (in shares) 12 8 11 4
v3.21.2
Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance $ 27,039 $ 26,300 $ 25,404 $ 26,001
Other comprehensive income (loss) before reclassification adjustments, pretax 1,848 (68) 1,813 (220)
Tax (395) 45 (522) 2
Other comprehensive income (loss) before reclassification adjustments, net of taxes 1,453 (23) 1,291 (218)
Reclassification adjustments, pretax 126 27 324 28
Tax (34) (6) (58) (10)
Reclassification adjustments, net of taxes 92 21 266 18
Other comprehensive income (loss), net of taxes 1,545 (2) 1,557 (200)
Spin-off of Organon & Co. 5,091   5,091  
Equity, ending balance 33,388 27,744 33,388 27,744
Derivatives        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance (36) 135 (266) 31
Other comprehensive income (loss) before reclassification adjustments, pretax (59) (110) 121 68
Tax 13 23 (25) (14)
Other comprehensive income (loss) before reclassification adjustments, net of taxes (46) (87) 96 54
Reclassification adjustments, pretax 71 (42) 182 (89)
Tax (15) 9 (38) 19
Reclassification adjustments, net of taxes 56 (33) 144 (70)
Other comprehensive income (loss), net of taxes 10 (120) 240 (16)
Spin-off of Organon & Co. 0   0  
Equity, ending balance (26) 15 (26) 15
Investments        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance 0 0 0 18
Other comprehensive income (loss) before reclassification adjustments, pretax 0 0 0 3
Tax 0 0 0 0
Other comprehensive income (loss) before reclassification adjustments, net of taxes 0 0 0 3
Reclassification adjustments, pretax 0 0 0 (21)
Tax 0 0 0 0
Reclassification adjustments, net of taxes 0 0 0 (21)
Other comprehensive income (loss), net of taxes 0 0 0 (18)
Spin-off of Organon & Co. 0   0  
Equity, ending balance 0 0 0 0
Employee Benefit Plans        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance (4,459) (4,201) (4,540) (4,261)
Other comprehensive income (loss) before reclassification adjustments, pretax 1,767 (21) 1,763 (21)
Tax (400) 6 (401) 11
Other comprehensive income (loss) before reclassification adjustments, net of taxes 1,367 (15) 1,362 (10)
Reclassification adjustments, pretax 55 69 142 138
Tax (19) (15) (20) (29)
Reclassification adjustments, net of taxes 36 54 122 109
Other comprehensive income (loss), net of taxes 1,403 39 1,484 99
Spin-off of Organon & Co. 28   28  
Equity, ending balance (3,028) (4,162) (3,028) (4,162)
Foreign Currency Translation Adjustment        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance (2,127) (2,325) (1,828) (1,981)
Other comprehensive income (loss) before reclassification adjustments, pretax 140 63 (71) (270)
Tax (8) 16 (96) 5
Other comprehensive income (loss) before reclassification adjustments, net of taxes 132 79 (167) (265)
Reclassification adjustments, pretax 0 0 0 0
Tax 0 0 0 0
Reclassification adjustments, net of taxes 0 0 0 0
Other comprehensive income (loss), net of taxes 132 79 (167) (265)
Spin-off of Organon & Co. 421   421  
Equity, ending balance (1,574) (2,246) (1,574) (2,246)
Accumulated Other Comprehensive Income (Loss)        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Equity, beginning balance (6,622) (6,391) (6,634) (6,193)
Spin-off of Organon & Co. 449   449  
Equity, ending balance $ (4,628) $ (6,393) $ (4,628) $ (6,393)
v3.21.2
Segment Reporting - Narrative (Details)
$ in Billions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
USD ($)
Jun. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
segment
Jun. 30, 2020
USD ($)
Segment Reporting [Abstract]        
Number of operating segments | segment     2  
Sales discounts | $ $ 3.1 $ 2.6 $ 6.0 $ 5.4
v3.21.2
Segment Reporting - Sales of Company's Products (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Segment Reporting Information [Line Items]        
Sales $ 11,402 $ 9,353 $ 22,029 $ 19,641
Operating Segments        
Segment Reporting Information [Line Items]        
Sales 11,452 9,279 22,108 19,420
Other        
Segment Reporting Information [Line Items]        
Sales (50) 74 (79) 221
United States        
Segment Reporting Information [Line Items]        
Sales 5,100 4,322 9,890 9,053
United States | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 5,106 4,300 9,837 9,015
United States | Other        
Segment Reporting Information [Line Items]        
Sales (6) 22 53 38
International        
Segment Reporting Information [Line Items]        
Sales 6,301 5,031 12,139 10,588
International | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 6,345 4,979 12,271 10,406
International | Other        
Segment Reporting Information [Line Items]        
Sales (44) 52 (132) 182
Total Pharmaceutical segment sales | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 9,980 8,178 19,218 17,083
Total Pharmaceutical segment sales | Operating Segments | Keytruda        
Segment Reporting Information [Line Items]        
Sales 4,176 3,388 8,076 6,672
Total Pharmaceutical segment sales | Operating Segments | Alliance revenue - Lynparza (1)        
Segment Reporting Information [Line Items]        
Sales 248 178 475 323
Total Pharmaceutical segment sales | Operating Segments | Alliance revenue - Lenvima (1)        
Segment Reporting Information [Line Items]        
Sales 181 151 310 279
Total Pharmaceutical segment sales | Operating Segments | Gardasil/Gardasil 9        
Segment Reporting Information [Line Items]        
Sales 1,234 656 2,151 1,753
Total Pharmaceutical segment sales | Operating Segments | ProQuad/M-M-R II/Varivax        
Segment Reporting Information [Line Items]        
Sales 516 378 965 813
Total Pharmaceutical segment sales | Operating Segments | RotaTeq        
Segment Reporting Information [Line Items]        
Sales 208 168 366 391
Total Pharmaceutical segment sales | Operating Segments | Pneumovax 23        
Segment Reporting Information [Line Items]        
Sales 152 117 323 373
Total Pharmaceutical segment sales | Operating Segments | Vaqta        
Segment Reporting Information [Line Items]        
Sales 56 28 90 88
Total Pharmaceutical segment sales | Operating Segments | Bridion        
Segment Reporting Information [Line Items]        
Sales 387 224 727 524
Total Pharmaceutical segment sales | Operating Segments | Prevymis        
Segment Reporting Information [Line Items]        
Sales 93 63 174 123
Total Pharmaceutical segment sales | Operating Segments | Noxafil        
Segment Reporting Information [Line Items]        
Sales 66 73 133 168
Total Pharmaceutical segment sales | Operating Segments | Primaxin        
Segment Reporting Information [Line Items]        
Sales 60 64 125 115
Total Pharmaceutical segment sales | Operating Segments | Cancidas        
Segment Reporting Information [Line Items]        
Sales 54 43 111 98
Total Pharmaceutical segment sales | Operating Segments | Invanz        
Segment Reporting Information [Line Items]        
Sales 48 43 104 108
Total Pharmaceutical segment sales | Operating Segments | Zerbaxa        
Segment Reporting Information [Line Items]        
Sales (1) 32 (9) 69
Total Pharmaceutical segment sales | Operating Segments | Simponi        
Segment Reporting Information [Line Items]        
Sales 202 191 416 406
Total Pharmaceutical segment sales | Operating Segments | Remicade        
Segment Reporting Information [Line Items]        
Sales 75 73 160 160
Total Pharmaceutical segment sales | Operating Segments | Belsomra        
Segment Reporting Information [Line Items]        
Sales 78 84 157 163
Total Pharmaceutical segment sales | Operating Segments | Isentress/Isentress HD        
Segment Reporting Information [Line Items]        
Sales 192 196 401 441
Total Pharmaceutical segment sales | Operating Segments | Alliance revenue-Adempas/Verquvo (2)        
Segment Reporting Information [Line Items]        
Sales 74 79 149 133
Total Pharmaceutical segment sales | Operating Segments | Adempas        
Segment Reporting Information [Line Items]        
Sales 74 57 129 113
Total Pharmaceutical segment sales | Operating Segments | Januvia        
Segment Reporting Information [Line Items]        
Sales 784 854 1,593 1,628
Total Pharmaceutical segment sales | Operating Segments | Janumet        
Segment Reporting Information [Line Items]        
Sales 477 490 962 993
Total Pharmaceutical segment sales | Operating Segments | Other pharmaceutical (3)        
Segment Reporting Information [Line Items]        
Sales 546 548 1,130 1,149
Total Pharmaceutical segment sales | United States | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 4,647 3,958 8,941 8,266
Total Pharmaceutical segment sales | United States | Operating Segments | Keytruda        
Segment Reporting Information [Line Items]        
Sales 2,347 2,043 4,528 3,949
Total Pharmaceutical segment sales | United States | Operating Segments | Alliance revenue - Lynparza (1)        
Segment Reporting Information [Line Items]        
Sales 124 105 242 190
Total Pharmaceutical segment sales | United States | Operating Segments | Alliance revenue - Lenvima (1)        
Segment Reporting Information [Line Items]        
Sales 88 98 173 188
Total Pharmaceutical segment sales | United States | Operating Segments | Gardasil/Gardasil 9        
Segment Reporting Information [Line Items]        
Sales 454 168 766 629
Total Pharmaceutical segment sales | United States | Operating Segments | ProQuad/M-M-R II/Varivax        
Segment Reporting Information [Line Items]        
Sales 386 263 718 596
Total Pharmaceutical segment sales | United States | Operating Segments | RotaTeq        
Segment Reporting Information [Line Items]        
Sales 111 100 229 241
Total Pharmaceutical segment sales | United States | Operating Segments | Pneumovax 23        
Segment Reporting Information [Line Items]        
Sales 100 21 173 203
Total Pharmaceutical segment sales | United States | Operating Segments | Vaqta        
Segment Reporting Information [Line Items]        
Sales 22 17 47 47
Total Pharmaceutical segment sales | United States | Operating Segments | Bridion        
Segment Reporting Information [Line Items]        
Sales 197 107 364 250
Total Pharmaceutical segment sales | United States | Operating Segments | Prevymis        
Segment Reporting Information [Line Items]        
Sales 37 28 72 55
Total Pharmaceutical segment sales | United States | Operating Segments | Noxafil        
Segment Reporting Information [Line Items]        
Sales 14 6 29 14
Total Pharmaceutical segment sales | United States | Operating Segments | Primaxin        
Segment Reporting Information [Line Items]        
Sales 0 1 0 1
Total Pharmaceutical segment sales | United States | Operating Segments | Cancidas        
Segment Reporting Information [Line Items]        
Sales 1 (2) 3 1
Total Pharmaceutical segment sales | United States | Operating Segments | Invanz        
Segment Reporting Information [Line Items]        
Sales (4) 0 0 6
Total Pharmaceutical segment sales | United States | Operating Segments | Zerbaxa        
Segment Reporting Information [Line Items]        
Sales (2) 17 (4) 37
Total Pharmaceutical segment sales | United States | Operating Segments | Simponi        
Segment Reporting Information [Line Items]        
Sales 0 0 0 0
Total Pharmaceutical segment sales | United States | Operating Segments | Remicade        
Segment Reporting Information [Line Items]        
Sales 0 0 0 0
Total Pharmaceutical segment sales | United States | Operating Segments | Belsomra        
Segment Reporting Information [Line Items]        
Sales 14 22 32 49
Total Pharmaceutical segment sales | United States | Operating Segments | Isentress/Isentress HD        
Segment Reporting Information [Line Items]        
Sales 74 76 145 151
Total Pharmaceutical segment sales | United States | Operating Segments | Alliance revenue-Adempas/Verquvo (2)        
Segment Reporting Information [Line Items]        
Sales 81 73 149 122
Total Pharmaceutical segment sales | United States | Operating Segments | Adempas        
Segment Reporting Information [Line Items]        
Sales 0 0 0 0
Total Pharmaceutical segment sales | United States | Operating Segments | Januvia        
Segment Reporting Information [Line Items]        
Sales 284 413 632 768
Total Pharmaceutical segment sales | United States | Operating Segments | Janumet        
Segment Reporting Information [Line Items]        
Sales 74 143 158 256
Total Pharmaceutical segment sales | United States | Operating Segments | Other pharmaceutical (3)        
Segment Reporting Information [Line Items]        
Sales 245 259 485 513
Total Pharmaceutical segment sales | International | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 5,333 4,220 10,277 8,818
Total Pharmaceutical segment sales | International | Operating Segments | Keytruda        
Segment Reporting Information [Line Items]        
Sales 1,829 1,345 3,548 2,722
Total Pharmaceutical segment sales | International | Operating Segments | Alliance revenue - Lynparza (1)        
Segment Reporting Information [Line Items]        
Sales 124 73 233 133
Total Pharmaceutical segment sales | International | Operating Segments | Alliance revenue - Lenvima (1)        
Segment Reporting Information [Line Items]        
Sales 93 53 137 91
Total Pharmaceutical segment sales | International | Operating Segments | Gardasil/Gardasil 9        
Segment Reporting Information [Line Items]        
Sales 781 488 1,385 1,124
Total Pharmaceutical segment sales | International | Operating Segments | ProQuad/M-M-R II/Varivax        
Segment Reporting Information [Line Items]        
Sales 130 115 246 217
Total Pharmaceutical segment sales | International | Operating Segments | RotaTeq        
Segment Reporting Information [Line Items]        
Sales 97 68 137 150
Total Pharmaceutical segment sales | International | Operating Segments | Pneumovax 23        
Segment Reporting Information [Line Items]        
Sales 52 96 150 170
Total Pharmaceutical segment sales | International | Operating Segments | Vaqta        
Segment Reporting Information [Line Items]        
Sales 34 11 43 41
Total Pharmaceutical segment sales | International | Operating Segments | Bridion        
Segment Reporting Information [Line Items]        
Sales 190 117 363 274
Total Pharmaceutical segment sales | International | Operating Segments | Prevymis        
Segment Reporting Information [Line Items]        
Sales 56 35 103 68
Total Pharmaceutical segment sales | International | Operating Segments | Noxafil        
Segment Reporting Information [Line Items]        
Sales 52 67 104 154
Total Pharmaceutical segment sales | International | Operating Segments | Primaxin        
Segment Reporting Information [Line Items]        
Sales 60 63 125 114
Total Pharmaceutical segment sales | International | Operating Segments | Cancidas        
Segment Reporting Information [Line Items]        
Sales 53 45 108 98
Total Pharmaceutical segment sales | International | Operating Segments | Invanz        
Segment Reporting Information [Line Items]        
Sales 52 43 104 102
Total Pharmaceutical segment sales | International | Operating Segments | Zerbaxa        
Segment Reporting Information [Line Items]        
Sales 1 15 (5) 32
Total Pharmaceutical segment sales | International | Operating Segments | Simponi        
Segment Reporting Information [Line Items]        
Sales 202 191 416 406
Total Pharmaceutical segment sales | International | Operating Segments | Remicade        
Segment Reporting Information [Line Items]        
Sales 75 73 160 160
Total Pharmaceutical segment sales | International | Operating Segments | Belsomra        
Segment Reporting Information [Line Items]        
Sales 63 61 125 114
Total Pharmaceutical segment sales | International | Operating Segments | Isentress/Isentress HD        
Segment Reporting Information [Line Items]        
Sales 118 120 256 290
Total Pharmaceutical segment sales | International | Operating Segments | Alliance revenue-Adempas/Verquvo (2)        
Segment Reporting Information [Line Items]        
Sales (7) 6 0 11
Total Pharmaceutical segment sales | International | Operating Segments | Adempas        
Segment Reporting Information [Line Items]        
Sales 74 57 129 113
Total Pharmaceutical segment sales | International | Operating Segments | Januvia        
Segment Reporting Information [Line Items]        
Sales 500 441 961 860
Total Pharmaceutical segment sales | International | Operating Segments | Janumet        
Segment Reporting Information [Line Items]        
Sales 403 348 805 737
Total Pharmaceutical segment sales | International | Operating Segments | Other pharmaceutical (3)        
Segment Reporting Information [Line Items]        
Sales 301 289 644 637
Total Animal Health segment sales | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 1,472 1,101 2,890 2,314
Total Animal Health segment sales | Operating Segments | Livestock        
Segment Reporting Information [Line Items]        
Sales 821 648 1,640 1,386
Total Animal Health segment sales | Operating Segments | Companion Animals        
Segment Reporting Information [Line Items]        
Sales 651 453 1,250 928
Total Animal Health segment sales | United States | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 459 342 896 726
Total Animal Health segment sales | United States | Operating Segments | Livestock        
Segment Reporting Information [Line Items]        
Sales 161 122 318 284
Total Animal Health segment sales | United States | Operating Segments | Companion Animals        
Segment Reporting Information [Line Items]        
Sales 298 220 578 442
Total Animal Health segment sales | International | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 1,012 759 1,994 1,588
Total Animal Health segment sales | International | Operating Segments | Livestock        
Segment Reporting Information [Line Items]        
Sales 659 526 1,322 1,102
Total Animal Health segment sales | International | Operating Segments | Companion Animals        
Segment Reporting Information [Line Items]        
Sales 353 233 672 486
Other segment sales (4) | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 0 0 0 23
Other segment sales (4) | United States | Operating Segments        
Segment Reporting Information [Line Items]        
Sales 0 0 0 23
Other segment sales (4) | International | Operating Segments        
Segment Reporting Information [Line Items]        
Sales $ 0 $ 0 $ 0 $ 0
v3.21.2
Segment Reporting - Revenues by Geographic Area (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenue from External Customer [Line Items]        
Sales $ 11,402 $ 9,353 $ 22,029 $ 19,641
United States        
Revenue from External Customer [Line Items]        
Sales 5,100 4,322 9,890 9,053
Europe, Middle East and Africa        
Revenue from External Customer [Line Items]        
Sales 3,333 2,622 6,569 5,591
China        
Revenue from External Customer [Line Items]        
Sales 975 623 1,697 1,269
Japan        
Revenue from External Customer [Line Items]        
Sales 661 621 1,291 1,204
Asia Pacific (other than China and Japan)        
Revenue from External Customer [Line Items]        
Sales 594 489 1,168 1,015
Latin America        
Revenue from External Customer [Line Items]        
Sales 532 423 1,032 875
Other        
Revenue from External Customer [Line Items]        
Sales $ 207 $ 253 $ 382 $ 634
v3.21.2
Segment Reporting - Profits to Income Before Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Segment Reporting Information [Line Items]        
Profits $ 1,717 $ 2,741 $ 4,704 $ 5,702
Interest income 9 14 20 39
Interest expense (202) (209) (401) (421)
Amortization     871 988
Research and development (4,321) (2,085) (6,732) (4,260)
Restructuring costs (82) (82) (380) (152)
Total segment profits        
Segment Reporting Information [Line Items]        
Profits 7,809 6,240 14,969 13,098
Total segment profits | Pharmaceutical segment        
Segment Reporting Information [Line Items]        
Profits 7,257 5,832 13,845 12,209
Total segment profits | Animal Health segment        
Segment Reporting Information [Line Items]        
Profits 552 408 1,124 887
Total segment profits | Other segment        
Segment Reporting Information [Line Items]        
Profits 0 0 0 2
Other profits        
Segment Reporting Information [Line Items]        
Profits (79) 43 (113) 163
Unallocated        
Segment Reporting Information [Line Items]        
Interest income 9 14 20 39
Interest expense (202) (209) (401) (421)
Amortization 357 599 871 988
Depreciation (332) (367) (673) (733)
Research and development (4,175) (1,956) (6,480) (4,020)
Restructuring costs (82) (82) (380) (152)
Other unallocated, net $ (874) $ (343) $ (1,367) $ (1,284)