|
☒ |
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
2000 Galloping Hill Road | ||||||||||||||
Kenilworth | New Jersey | 07033 |
New Jersey | 22-1918501 | |||||||
(State or other jurisdiction of incorporation)
|
(I.R.S Employer Identification No.)
|
Securities Registered pursuant to Section 12(b) of the Act: | ||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | ||||||
Common Stock ($0.50 par value) | MRK | New York Stock Exchange | ||||||
1.125% Notes due 2021 | MRK/21 | New York Stock Exchange | ||||||
0.500% Notes due 2024 | MRK 24 | New York Stock Exchange | ||||||
1.875% Notes due 2026 | MRK/26 | New York Stock Exchange | ||||||
2.500% Notes due 2034 | MRK/34 | New York Stock Exchange | ||||||
1.375% Notes due 2036 | MRK 36A | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Documents Incorporated by Reference:
|
||||||||
Document | Part of Form 10-K | |||||||
Proxy Statement for the Annual Meeting of Shareholders to be held May 25, 2021, to be filed with the
Securities and Exchange Commission within 120 days after the close of the fiscal year covered by this report |
Part III |
Page | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 1B. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 7. | |||||||||||
Item 7A. | |||||||||||
Item 8. | |||||||||||
(a) | |||||||||||
Item 9. | |||||||||||
Item 9A. | |||||||||||
Item 9B. | |||||||||||
Item 10. | |||||||||||
Item 11. | |||||||||||
Item 12. | |||||||||||
Item 13. | |||||||||||
Item 14. | |||||||||||
Item 15. | |||||||||||
Item 16. | |||||||||||
($ in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Total Sales | $ | 47,994 | $ | 46,840 | $ | 42,294 | |||||||||||
Pharmaceutical | 43,021 | 41,751 | 37,689 | ||||||||||||||
Keytruda | 14,380 | 11,084 | 7,171 | ||||||||||||||
Januvia/Janumet | 5,276 | 5,524 | 5,914 | ||||||||||||||
Gardasil/Gardasil 9
|
3,938 | 3,737 | 3,151 | ||||||||||||||
ProQuad/M-M-R II/Varivax
|
1,878 | 2,275 | 1,798 | ||||||||||||||
Bridion | 1,198 | 1,131 | 917 | ||||||||||||||
Pneumovax 23
|
1,087 | 926 | 907 | ||||||||||||||
Isentress/Isentress HD | 857 | 975 | 1,140 | ||||||||||||||
Simponi | 838 | 830 | 893 | ||||||||||||||
RotaTeq | 797 | 791 | 728 | ||||||||||||||
Alliance revenue - Lynparza(1)
|
725 | 444 | 187 | ||||||||||||||
Implanon/Nexplanon | 680 | 787 | 703 | ||||||||||||||
Zetia/Vytorin | 664 | 874 | 1,355 | ||||||||||||||
Alliance revenue - Lenvima(1)
|
580 | 404 | 149 | ||||||||||||||
Animal Health | 4,703 | 4,393 | 4,212 | ||||||||||||||
Livestock | 2,939 | 2,784 | 2,630 | ||||||||||||||
Companion Animals | 1,764 | 1,609 | 1,582 | ||||||||||||||
Other Revenues(2)
|
270 | 696 | 393 |
Product
|
Date
|
Approval
|
||||||
Dificid (1)
|
January 2020 |
U.S. Food and Drug Administration (FDA) approved Dificid as an oral suspension, and Dificid tablets for the treatment of Clostridioides (formerly Clostridium) difficile-associated diarrhea in children aged six months and older.
|
||||||
Gardasil | November 2020 |
China’s National Medical Products Administration (NMPA) granted expanded approval for Gardasil for use in girls and women from 9 to 45 years of age.
|
||||||
Gardasil 9
|
December 2020 |
Japan’s Ministry of Health, Labour and Welfare (MHLW) approved additional indication, dosage and administrations of Gardasil 9 (marketed as Silgard 9) for the prevention of anal cancer (squamous cell cancer) and precursor lesions (anal intraepithelial neoplasia (AIN) grade 1/2/3) caused by HPV types 6, 11, 16 and 18 for individuals 9 years and older and for Genital Warts (condyloma acuminate) for men 9 years and older.
|
||||||
July 2020 |
Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) approved Gardasil 9 for use in girls and women 9 years and older for the prevention of cervical cancer, certain cervical, vaginal and vulvar precancers, and genital warts caused by the HPV types covered by the vaccine.
|
|||||||
June 2020 |
FDA granted accelerated approval for an expanded indication for Gardasil 9 for the prevention of oropharyngeal and other head and neck cancers caused by HPV Types 16, 18, 31, 33, 45, 52, and 58.
|
Keytruda
|
December 2020 |
NMPA approved Keytruda as monotherapy for the first-line treatment of patients with metastatic or with unresectable, recurrent HNSCC whose tumors express PD-L1 (Combined Positive Score CPS ≥20) as determined by a fully validated test.
|
||||||
November 2020
|
FDA granted accelerated approval for Keytruda in combination with chemotherapy for patients with locally recurrent unresectable or metastatic triple‑negative breast cancer whose tumors express PD-L1 (CPS ≥10).
|
|||||||
October 2020 |
FDA approved an expanded label for Keytruda, as monotherapy for the treatment of adult patients with relapsed or refractory cHL.
|
|||||||
August 2020
|
PMDA approved Keytruda for use at an additional recommended dosage of 400 mg every six weeks (Q6W) administered as an intravenous infusion over 30 minutes across all adult indications, including Keytruda monotherapy and combination therapy.
|
|||||||
August 2020
|
PMDA approved Keytruda for the treatment of patients whose tumors are PD-L1-positive, and have radically unresectable, advanced or recurrent esophageal squamous cell carcinoma (ESCC) who have progressed after chemotherapy.
|
|||||||
June 2020
|
FDA approved Keytruda as monotherapy for the first-line treatment of patients with unresectable or metastatic MSI-H or dMMR colorectal cancer.
|
|||||||
June 2020
|
FDA approved Keytruda as monotherapy for the treatment of patients with recurrent or metastatic cSCC that is not curable by surgery or radiation.
|
|||||||
June 2020
|
NMPA approved Keytruda as monotherapy for the treatment of patients with locally advanced or metastatic ESCC whose tumors express PD-L1 (CPS ≥10) as determined by a fully validated test, following failure of one prior line of systemic therapy.
|
|||||||
June 2020
|
FDA granted accelerated approval for Keytruda as monotherapy for the treatment of adult and pediatric patients with unresectable or metastatic TMB-H [≥10 mutations/megabase (mut/Mb)] solid tumors, as determined by an FDA-approved test, that have progressed following prior treatment and who have no satisfactory alternative treatment options.
|
|||||||
April 2020
|
FDA granted accelerated approval for Keytruda for use at an additional recommended dose of 400 mg every six weeks (Q6W) for all approved adult indications.
|
|||||||
January 2020 |
FDA approved Keytruda for patients with Bacillus Calmette-Guerin (BCG)-unresponsive, high-risk, non-muscle invasive bladder cancer with carcinoma in situ with or without papillary tumors who are ineligible for or have elected not to undergo cystectomy.
|
|||||||
Koselugo(2)
|
April 2020 |
FDA approved the kinase inhibitor Koselugo for the treatment of pediatric patients two years of age and older with neurofibromatosis type 1 (NF1) who have symptomatic, inoperable plexiform neurofibromas (PN).
|
||||||
Lenvima | November 2020 | NMPA approved Lenvima as a monotherapy for the treatment of differentiated thyroid cancer. |
Lynparza(2)
|
December 2020 |
PMDA approved Lynparza for the treatment of patients with BRCA gene-mutated (BRCAm) castration-resistant prostate cancer with distant metastasis.
|
||||||
December 2020 |
PMDA approved Lynparza as maintenance treatment after platinum-based chemotherapy for patients with BRCAm curatively unresectable pancreas cancer.
|
|||||||
December 2020 |
PMDA approved Lynparza as maintenance treatment after first-line chemotherapy containing bevacizumab (genetical recombination) in patients with homologous recombination repair deficient (HRD) ovarian cancer.
|
|||||||
November 2020 |
The European Commission (EC) approved Lynparza for the maintenance treatment of adult patients with advanced (FIGO stages III and IV) high-grade epithelial ovarian, fallopian tube or primary peritoneal cancer who are in response (complete or partial) following completion of first-line platinum-based chemotherapy in combination with bevacizumab and whose cancer is associated with HRD-positive status defined by either a breast cancer susceptibility gene 1/2 (BRCA1/2) mutation and/or genomic instability.
|
|||||||
November 2020 | EC approved Lynparza as monotherapy for the treatment of adult patients with metastatic castration-resistant prostate cancer (mCRPC) and BRCA1/2 mutations (germline and/or somatic) who have progressed following a prior therapy that included a new hormonal agent. | |||||||
July 2020
|
EC approved Lynparza as a monotherapy for the maintenance treatment of adult patients with germline BRCA1/2 mutations who have metastatic adenocarcinoma of the pancreas and have not progressed after a minimum of 16 weeks of platinum treatment within a first-line chemotherapy regimen.
|
|||||||
May 2020 |
FDA approved Lynparza for the treatment of adult patients with deleterious or suspected deleterious germline or somatic homologous recombination repair (HRR) gene-mutated mCRPC, as determined by an FDA-approved test, who have progressed following prior treatment with enzalutamide or abiraterone.
|
|||||||
May 2020
|
FDA approved Lynparza in combination with bevacizumab as a first-line maintenance treatment of adult patients with advanced epithelial ovarian, fallopian tube or primary peritoneal cancer who are in complete or partial response to first-line platinum-based chemotherapy and whose cancer is associated with HRD positive status defined by either a deleterious or suspected deleterious BRCA mutation, and/or genomic instability, as determined by an FDA-approved test.
|
|||||||
Recarbrio
|
June 2020
|
FDA approved Recarbrio for the treatment of patients 18 years of age and older with hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia (HABP/VABP).
|
||||||
Steglatro(3)
|
July 2020 |
NMPA approved Steglatro 5 mg tablets for the treatment of type 2 diabetes.
|
Product | Year of Expiration (U.S.) |
Year of Expiration (EU)(1)
|
Year of Expiration (Japan)(2)
|
Year of Expiration (China)
|
||||||||||
Januvia | 2023 | 2022 | 2025-2026 | 2022 | ||||||||||
Janumet | 2023 | 2023 | N/A | 2022 | ||||||||||
Janumet XR | 2023 | N/A | N/A | 2022 | ||||||||||
Isentress | 2024 |
2023(3)
|
2022-2026 | 2022 | ||||||||||
Simponi |
N/A(4)
|
2024(5)
|
N/A(4)
|
N/A(4)
|
||||||||||
Lenvima(6)
|
2025(3) (with pending PTE)
|
2021 (patents), 2026(3) (SPCs)
|
2026 | 2021 | ||||||||||
Adempas(7)
|
2026(3)
|
2028(3)
|
2027-2028 | 2023 | ||||||||||
Bridion |
2026(3) (with pending PTE)
|
2023 | 2024 | Expired | ||||||||||
Nexplanon | 2027 (device) | 2025 (device) | N/A | 2025 | ||||||||||
Bravecto | 2027 (with pending PTE) | 2025 (patents), 2029 (SPCs) | 2029 | 2033 | ||||||||||
Gardasil | 2028 |
2021(3)
|
Expired | N/A | ||||||||||
Gardasil 9
|
2028 |
2025 (patents), 2030(3) (SPCs)
|
N/A | 2025 | ||||||||||
Keytruda | 2028 |
2028 (patents), 2030(3) (SPCs)
|
2032-2033 | 2028 | ||||||||||
Lynparza(8)
|
2028(3) (with pending PTE)
|
2024 (patents), 2029(3) (SPCs)
|
2028-2029 | 2024 | ||||||||||
Zerbaxa |
2028(3)
|
2023 (patents), 2028(3) (SPCs)
|
2028 (with pending PTE) | N/A | ||||||||||
Sivextro | 2028 | 2024 (patents), 2029 (SPCs) | 2029 | 2024 | ||||||||||
Belsomra |
2029(3)
|
N/A | 2031 | N/A | ||||||||||
Prevymis |
2029(3) (with pending PTE)
|
2024 (patents), 2029(3) (SPCs)
|
2029 | N/A | ||||||||||
Segluromet(9)
|
2031 (with pending PTE) | 2029 (patents), 2034 (SPCs) |
N/A(10)
|
N/A | ||||||||||
Steglatro(9)
|
2031(3) (with pending PTE)
|
2029 (patents), 2034(3) (SPCs)
|
N/A(10)
|
2029 | ||||||||||
Steglujan(9)
|
2031 (with pending PTE)
|
2029 (patents), 2034 (SPCs) |
N/A(10)
|
N/A | ||||||||||
Verquvo(7)
|
2031 (with pending PTE) |
N/A(11)
|
N/A(11)
|
N/A(11)
|
||||||||||
Delstrigo | 2032 (with pending PTE) | 2031 (patents), 2033 (SPCs) | N/A | N/A | ||||||||||
Pifeltro | 2032 (with pending PTE) | 2031 (patents), 2033 (SPCs) | 2036 | 2031 | ||||||||||
Recarbrio |
2033(3) (with pending PTE)
|
N/A | N/A | N/A |
Phase 3 Drug Candidate |
Currently Anticipated
Year of Expiration (in the U.S.)
|
||||
MK-7264 (gefapixant) | 2027 | ||||
V114 (pneumoconjugate vaccine) | 2031 (vaccine composition) | ||||
MK-7110 (CD24Fc) | 2031 | ||||
MK-8591A (islatravir/doravirine) | 2032 | ||||
MK-6482 (belzutifan)
|
2034 |
Phase 2 | Phase 3 (Phase 3 entry date) | Under Review | ||||||
Antiviral COVID-19
MK-4482 (molnupiravir)(1)
Cancer
MK-1026
Hematological Malignancies
MK-1308 (quavonlimab)(2)
Melanoma
Non-Small-Cell Lung
Solid Tumors
MK-1454(2)
Head and Neck
MK-2140
Advanced Solid Tumors
MK-3475 Keytruda
Advanced Solid Tumors
MK-4280(2)
Hematological Malignancies
Non-Small-Cell Lung
MK-4830
Non-Small-Cell Lung
MK-5890(2)
Non-Small-Cell Lung
MK-6440 (ladiratuzumab vedotin)(1)(3)
Advanced Solid Tumors
Breast
MK-7119 Tukysa(1)
Advanced Solid Tumors
Colorectal
Gastric
MK-7339 Lynparza(1)(3)
Advanced Solid Tumors
MK-7684 (vibostolimab)(2)
Melanoma
Non-Small-Cell Lung
MK-7902 Lenvima(1)(2)
Advanced Solid Tumors
Biliary Tract
Colorectal
Glioblastoma
V937
Breast
Cutaneous Squamous Cell
Head and Neck
Melanoma
Solid Tumors
Chikungunya virus
V184
Cytomegalovirus
V160
HIV-1 Prevention
MK-8591 (islatravir)
Nonalcoholic Steatohepatitis NASH
MK-3655
Overgrowth Syndrome
MK-7075 (miransertib)
Pneumococcal Vaccine Adult
V116
Respiratory Syncytial Virus
MK-1654
Schizophrenia
MK-8189
|
Cancer
MK-3475 Keytruda
Biliary Tract (September 2019)
Cervical (October 2018) (EU)
Cutaneous Squamous Cell (August 2019) (EU)
Endometrial (August 2019) (EU)
Gastric (May 2015) (EU)
Hepatocellular (May 2016) (EU)
Mesothelioma (May 2018)
Ovarian (December 2018)
Prostate (May 2019)
Small-Cell Lung (May 2017) (EU)
MK-6482 (belzutifan)
Renal Cell (February 2020)
MK-7119 Tukysa(1)
Breast (October 2019)
MK-7339 Lynparza(1)(2)
Colorectal(1) (August 2020)
Non-Small-Cell Lung(2) (June 2019)
Small-Cell Lung(2) (December 2020)
MK-7902 Lenvima(1)(2)
Bladder (May 2019)
Endometrial (June 2018) (EU)
Gastric (December 2020)
Head and Neck (February 2020)
Melanoma (March 2019)
Non-Small-Cell Lung (March 2019)
Cough
MK-7264 (gefapixant) (March 2018)
COVID-19
MK-7110 (December 2020)
HIV-1 Infection
MK-8591A (doravirine/islatravir) (February 2020)
|
New Molecular Entities/Vaccines
Bacterial Infection
MK-7655A (relebactam+imipenem/cilastatin) (JPN)
Heart Failure
MK-1242 (vericiguat)(1) (EU) (JPN)
Pediatric Neurofibromatosis Type 1
MK-5618 (selumetinib)(1) (EU)
Pneumococcal Infection Adult
V-114 (U.S.) (EU)
Certain Supplemental Filings
Cancer
MK-3475 Keytruda
• Metastatic Triple-Negative Breast Cancer
(KEYNOTE-355) (EU) (JPN)
• Early-Stage Triple-Negative Breast Cancer
(KEYNOTE-522) (U.S.)
• Refractory Classical Hodgkin Lymphoma
(KEYNOTE-204) (EU)
• Unresectable or Metastatic MSI-H or dMMR Colorectal Cancer
(KEYNOTE-177) (JPN)
• Cutaneous Squamous Cell Cancer
(KEYNOTE-629) (U.S.)
• Advanced Unresectable Metastatic
Esophageal Cancer (KEYNOTE-590)
(U.S.) (EU) (JPN)
• First-Line Metastatic HER2+ Gastric Cancer
(KEYNOTE-811) (U.S.)
MK-7902 Lenvima(1)
• First-Line Metastatic Hepatocellular Carcinoma
(KEYNOTE-524) (U.S.)(2)(4)
• Thymic Carcinoma (NCCH1508/REMORA) (JPN)
|
||||||
Footnotes:
(1) Being developed in a collaboration.
(2) Being developed in combination with Keytruda.
(3) Being developed as monotherapy and in combination with Keytruda.
(4) In July 2020, the FDA issued a CRL for Merck’s and Eisai’s applications. Merck and Eisai intend to submit additional data when available to the FDA.
|
Gender and Ethnicity Performance Data(1)
|
2020 | 2019 | 2018 | ||||||||
Women in the workforce | 49% | 49% | 49% | ||||||||
Women in the workforce in the U.S. | 50% | 50% | NR | ||||||||
Women on the Board of Directors | 46% | 33% | 23% | ||||||||
Women in executive roles(2)
|
34% | 36% | 32% | ||||||||
Women in management roles(3)
|
43% | 43% | 41% | ||||||||
Members of underrepresented ethnic groups on the Board of Directors | 23% | 17% | 15% | ||||||||
Members of underrepresented ethnic groups in executive roles (U.S.) | 22% | 26% | 21% | ||||||||
Members of underrepresented ethnic groups in the workforce (U.S.) | 31% | 29% | 27% | ||||||||
Members of underrepresented ethnic groups in management roles (U.S.) | 29% | 27% | 25% | ||||||||
New hires that were female | 50% | 50% | 51% | ||||||||
New hires that were members of underrepresented ethnic groups (U.S.) | 42% | 33% | 36% |
Name | Age | Offices and Business Experience | ||||||
Kenneth C. Frazier | 66 |
Chairman, President and Chief Executive Officer (since December 2011)
|
||||||
Sanat Chattopadhyay | 61 |
Executive Vice President and President, Merck Manufacturing Division (since March 2016)
|
||||||
Frank Clyburn | 56 |
Executive Vice President, Chief Commercial Officer (since January 2019); President, Global Oncology Business Unit (October 2013-December 2018)
|
||||||
Robert M. Davis | 54 |
Executive Vice President, Global Services, and Chief Financial Officer (since April 2016); Executive Vice President and Chief Financial Officer (April 2014-April 2016)
|
||||||
Richard R. DeLuca, Jr. | 58 |
Executive Vice President and President, Merck Animal Health (since September 2011)
|
||||||
Michael W. Fleming | 62 |
Senior Vice President, Chief Ethics and Compliance Officer (since March 2019); Senior Vice President, International Legal and Compliance (January 2017-March 2019); Vice President, International Legal and Compliance (July 2008-January 2017)
|
||||||
Julie L. Gerberding | 65 |
Executive Vice President and Chief Patient Officer, Strategic Communications, Global Public Policy and Population Health (since July 2016); Executive Vice President for Strategic Communications, Global Public Policy and Population Health (January 2015-July 2016)
|
||||||
Rita A. Karachun | 57 |
Senior Vice President Finance - Global Controller (since March 2014)
|
||||||
Dean Li | 58 | President, Merck Research Laboratories (since January 2021); Senior Vice President, Discovery Sciences and Translational Medicine, Merck Research Laboratories (November 2017-January 2020); Vice President, Translational Medicine (March 2017-November 2017); Prior to that, Chief Scientific Officer and Associate Vice President, University of Utah Health Sciences | ||||||
Steven C. Mizell
|
60 |
Executive Vice President, Chief Human Resources Officer (since December 2016); Executive Vice President, Human Resources, Monsanto Company (August 2011-December 2016)
|
||||||
Michael T. Nally | 45 |
Executive Vice President, Chief Marketing Officer (since January 2019); President, Global Vaccines, Global Human Health (September 2016-January 2019); Managing Director, United Kingdom and Ireland, Global Human Health (January 2014-September 2016)
|
||||||
Jennifer Zachary | 43 | Executive Vice President, General Counsel and Corporate Secretary (since January 2020); Executive Vice President and General Counsel (April 2018-January 2020); Partner, Covington & Burling LLP (January 2013-March 2018) |
End of
Period Value |
2020/2015
CAGR* |
||||||||||
MERCK | $180 | 12% | |||||||||
PEER GRP.** | 157 | 9% | |||||||||
S&P 500 | 203 | 15% |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
MERCK | 100.0 | 115.1 | 113.4 | 158.9 | 194.3 | 180.1 | ||||||||||||||
PEER GRP. | 100.0 | 96.9 | 116.1 | 124.1 | 147.2 | 157.2 | ||||||||||||||
S&P 500 | 100.0 | 112.0 | 136.4 | 130.4 | 171.4 | 203.0 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | ||||||||||||||||
Sales | $ | 47,994 | 2 | % | 4 | % | $ | 46,840 | ||||||||||||
Net Income Attributable to Merck & Co., Inc. | 7,067 | (28) | % | (25) | % | 9,843 | ||||||||||||||
Non-GAAP Net Income Attributable to Merck & Co., Inc. (1)
|
15,082 | 13 | % | 16 | % | 13,382 | ||||||||||||||
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders | $2.78 | (27) | % | (24) | % | $3.81 | ||||||||||||||
Non-GAAP Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders (1)
|
$5.94 | 14 | % | 17 | % | $5.19 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
United States | $ | 21,027 | 2 | % | 2 | % | $ | 20,519 | 12 | % | 12 | % | $ | 18,346 | |||||||||||||||||||||||||||
International | 26,967 | 2 | % | 5 | % | 26,321 | 10 | % | 13 | % | 23,949 | ||||||||||||||||||||||||||||||
Total | $ | 47,994 | 2 | % | 4 | % | $ | 46,840 | 11 | % | 13 | % | $ | 42,294 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Keytruda | $ | 14,380 | 30 | % | 30 | % | $ | 11,084 | 55 | % | 58 | % | $ | 7,171 | |||||||||||||||||||||||||||
Alliance Revenue - Lynparza (1)
|
725 | 63 | % | 62 | % | 444 | 137 | % | 141 | % | 187 | ||||||||||||||||||||||||||||||
Alliance Revenue - Lenvima (1)
|
580 | 44 | % | 43 | % | 404 | 171 | % | 173 | % | 149 | ||||||||||||||||||||||||||||||
Emend | 145 | (63) | % | (62) | % | 388 | (26) | % | (24) | % | 522 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Gardasil/Gardasil 9
|
$ | 3,938 | 5 | % | 6 | % | $ | 3,737 | 19 | % | 21 | % | $ | 3,151 | |||||||||||||||||||||||||||
ProQuad | 678 | (10) | % | (10) | % | 756 | 27 | % | 29 | % | 593 | ||||||||||||||||||||||||||||||
M-M-R II
|
378 | (31) | % | (31) | % | 549 | 28 | % | 29 | % | 430 | ||||||||||||||||||||||||||||||
Varivax | 823 | (15) | % | (15) | % | 970 | 25 | % | 28 | % | 774 | ||||||||||||||||||||||||||||||
Pneumovax 23
|
1,087 | 17 | % | 18 | % | 926 | 2 | % | 3 | % | 907 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Bridion | $ | 1,198 | 6 | % | 7 | % | $ | 1,131 | 23 | % | 26 | % | $ | 917 | |||||||||||||||||||||||||||
Noxafil | 329 | (50) | % | (50) | % | 662 | (11) | % | (7) | % | 742 | ||||||||||||||||||||||||||||||
Prevymis | 281 | 70 | % | 69 | % | 165 | 128 | % | 131 | % | 72 | ||||||||||||||||||||||||||||||
Cubicin | 152 | (41) | % | (40) | % | 257 | (30) | % | (28) | % | 367 | ||||||||||||||||||||||||||||||
Zerbaxa | 130 | 8 | % | 10 | % | 121 | 39 | % | 42 | % | 87 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Simponi | $ | 838 | 1 | % | 1 | % | $ | 830 | (7) | % | (2) | % | $ | 893 | |||||||||||||||||||||||||||
Remicade | 330 | (20) | % | (20) | % | 411 | (29) | % | (25) | % | 582 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Isentress/Isentress HD | $ | 857 | (12) | % | (11) | % | $ | 975 | (15) | % | (10) | % | $ | 1,140 | |||||||||||||||||||||||||||
Zepatier | 167 | (55) | % | (54) | % | 370 | (19) | % | (16) | % | 455 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Zetia/Vytorin | $ | 664 | (24) | % | (24) | % | $ | 874 | (35) | % | (34) | % | $ | 1,355 | |||||||||||||||||||||||||||
Atozet | 453 | 16 | % | 16 | % | 391 | 13 | % | 18 | % | 347 | ||||||||||||||||||||||||||||||
Rosuzet | 130 | 8 | % | 9 | % | 120 | 107 | % | 115 | % | 58 | ||||||||||||||||||||||||||||||
Alliance revenue - Adempas (1)
|
281 | 38 | % | 38 | % | 204 | 47 | % | 47 | % | 139 | ||||||||||||||||||||||||||||||
Adempas | 220 | 3 | % | 2 | % | 215 | 13 | % | 17 | % | 190 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Januvia/Janumet | $ | 5,276 | (4) | % | (4) | % | $ | 5,524 | (7) | % | (4) | % | $ | 5,914 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Implanon/Nexplanon | 680 | (14) | % | (13) | % | 787 | 12 | % | 14 | % | 703 | ||||||||||||||||||||||||||||||
NuvaRing | 236 | (73) | % | (73) | % | 879 | (3) | % | (2) | % | 902 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Biosimilars | $ | 330 | 31 | % | 31 | % | $ | 252 | * | * | $ | 64 |
($ in millions) | 2020 | % Change |
% Change
Excluding Foreign Exchange |
2019 | % Change |
% Change
Excluding Foreign Exchange |
2018 | ||||||||||||||||||||||||||||||||||
Livestock | $ | 2,939 | 6 | % | 9 | % | $ | 2,784 | 6 | % | 11 | % | $ | 2,630 | |||||||||||||||||||||||||||
Companion Animal | 1,764 | 10 | % | 11 | % | 1,609 | 2 | % | 5 | % | 1,582 |
($ in millions) | 2020 | % Change | 2019 | % Change | 2018 | ||||||||||||||||||||||||
Cost of sales | $ | 15,485 | 10 | % | $ | 14,112 | 4 | % | $ | 13,509 | |||||||||||||||||||
Selling, general and administrative | 10,468 | (1) | % | 10,615 | 5 | % | 10,102 | ||||||||||||||||||||||
Research and development | 13,558 | 37 | % | 9,872 | 1 | % | 9,752 | ||||||||||||||||||||||
Restructuring costs | 578 | (9) | % | 638 | 1 | % | 632 | ||||||||||||||||||||||
Other (income) expense, net | (886) | * | 139 | * | (402) | ||||||||||||||||||||||||
$ | 39,203 | 11 | % | $ | 35,376 | 5 | % | $ | 33,593 |
Segment Profits | |||||||||||||||||
($ in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Pharmaceutical segment profits | $ | 29,722 | $ | 28,324 | $ | 24,871 | |||||||||||
Animal Health segment profits | 1,650 | 1,609 | 1,659 | ||||||||||||||
Other non-reportable segment profits | 1 | (7) | 103 | ||||||||||||||
Other | (22,582) | (18,462) | (17,932) | ||||||||||||||
Income Before Taxes | $ | 8,791 | $ | 11,464 | $ | 8,701 |
($ in millions except per share amounts) | 2020 | 2019 | 2018 | ||||||||||||||
Income before taxes as reported under GAAP | $ | 8,791 | $ | 11,464 | $ | 8,701 | |||||||||||
Increase (decrease) for excluded items: | |||||||||||||||||
Acquisition and divestiture-related costs (1)
|
3,704 | 2,681 | 3,066 | ||||||||||||||
Restructuring costs | 883 | 927 | 658 | ||||||||||||||
Other items: | |||||||||||||||||
Charge for the acquisition of VelosBio | 2,660 | — | — | ||||||||||||||
Charges for the formation of collaborations (2)
|
1,076 | — | 1,400 | ||||||||||||||
Charge for the acquisition of OncoImmune | 462 | — | — | ||||||||||||||
Charge for the discontinuation of COVID-19 vaccine development programs | 305 | — | — | ||||||||||||||
Charge for the acquisition of Peloton | — | 993 | — | ||||||||||||||
Charge related to the termination of a collaboration with Samsung | — | — | 423 | ||||||||||||||
Charge for the acquisition of Viralytics Limited | — | — | 344 | ||||||||||||||
Other | (20) | 55 | (57) | ||||||||||||||
Non-GAAP income before taxes | 17,861 | 16,120 | 14,535 | ||||||||||||||
Taxes on income as reported under GAAP | 1,709 | 1,687 | 2,508 | ||||||||||||||
Estimated tax benefit on excluded items (3)
|
1,122 | 695 | 535 | ||||||||||||||
Adjustment to tax benefits recorded in conjunction with the 2015 Cubist Pharmaceuticals, Inc. acquisition | (67) | — | — | ||||||||||||||
Net tax benefit from the settlement of certain federal income tax matters | — | 364 | — | ||||||||||||||
Tax benefit from the reversal of tax reserves related to the divestiture of MCC | — | 86 | — | ||||||||||||||
Net tax charge related to the finalization of treasury regulations related to the enactment of the TCJA | — | (117) | (160) | ||||||||||||||
Non-GAAP taxes on income | 2,764 | 2,715 | 2,883 | ||||||||||||||
Non-GAAP net income | 15,097 | 13,405 | 11,652 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests as reported under GAAP | 15 | (66) | (27) | ||||||||||||||
Acquisition and divestiture-related costs attributable to noncontrolling interests | — | (89) | (58) | ||||||||||||||
Non-GAAP net income attributable to noncontrolling interests | 15 | 23 | 31 | ||||||||||||||
Non-GAAP net income attributable to Merck & Co., Inc. | $ | 15,082 | $ | 13,382 | $ | 11,621 | |||||||||||
EPS assuming dilution as reported under GAAP | $ | 2.78 | $ | 3.81 | $ | 2.32 | |||||||||||
EPS difference | 3.16 | 1.38 | 2.02 | ||||||||||||||
Non-GAAP EPS assuming dilution | $ | 5.94 | $ | 5.19 | $ | 4.34 |
Selected Data | |||||||||||||||||
($ in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Working capital | $ | 437 | $ | 5,263 | $ | 3,669 | |||||||||||
Total debt to total liabilities and equity | 34.7 | % | 31.2 | % | 30.4 | % | |||||||||||
Cash provided by operations to total debt | 0.3:1 | 0.5:1 | 0.4:1 |
Payments Due by Period | |||||||||||||||||||||||||||||
($ in millions) | Total | 2021 | 2022—2023 | 2024—2025 | Thereafter | ||||||||||||||||||||||||
Purchase obligations (1)
|
$ | 3,458 | $ | 977 | $ | 1,232 | $ | 668 | $ | 581 | |||||||||||||||||||
Loans payable and current portion of long-term debt
|
6,432 | 6,432 | — | — | — | ||||||||||||||||||||||||
Long-term debt | 25,437 | — | 4,000 | 3,863 | 17,574 | ||||||||||||||||||||||||
Interest related to debt obligations | 10,779 | 759 | 1,431 | 1,254 | 7,335 | ||||||||||||||||||||||||
Unrecognized tax benefits (2)
|
305 | 305 | — | — | — | ||||||||||||||||||||||||
Transition tax related to the enactment of the TCJA (3)
|
3,006 | 390 | 736 | 1,880 | — | ||||||||||||||||||||||||
Milestone payments related to collaborations (4)
|
200 | 200 | — | — | — | ||||||||||||||||||||||||
Leases (5)
|
1,778 | 335 | 521 | 342 | 580 | ||||||||||||||||||||||||
$ | 51,395 | $ | 9,398 | $ | 7,920 | $ | 8,007 | $ | 26,070 |
($ in millions) | 2020 | ||||||||||||||||
Debt Instrument | Par Value of Debt | Number of Interest Rate Swaps Held | Total Swap Notional Amount | ||||||||||||||
3.875% notes due 2021 (1)
|
$ | 1,150 | 5 | $ | 1,150 | ||||||||||||
2.40% notes due 2022 | 1,000 | 4 | 1,000 | ||||||||||||||
2.35% notes due 2022 | 1,250 | 5 | 1,250 |
($ in millions) | 2020 | 2019 | |||||||||
Balance January 1 | $ | 2,436 | $ | 2,630 | |||||||
Current provision | 13,144 | 11,999 | |||||||||
Adjustments to prior years | (16) | (230) | |||||||||
Payments | (12,454) | (11,963) | |||||||||
Balance December 31 | $ | 3,110 | $ | 2,436 |
2020 | 2019 | 2018 | |||||||||||||||
Sales | $ | 47,994 | $ | 46,840 | $ | 42,294 | |||||||||||
Costs, Expenses and Other | |||||||||||||||||
Cost of sales | 15,485 | 14,112 | 13,509 | ||||||||||||||
Selling, general and administrative | 10,468 | 10,615 | 10,102 | ||||||||||||||
Research and development | 13,558 | 9,872 | 9,752 | ||||||||||||||
Restructuring costs | 578 | 638 | 632 | ||||||||||||||
Other (income) expense, net | (886) | 139 | (402) | ||||||||||||||
39,203 | 35,376 | 33,593 | |||||||||||||||
Income Before Taxes | 8,791 | 11,464 | 8,701 | ||||||||||||||
Taxes on Income | 1,709 | 1,687 | 2,508 | ||||||||||||||
Net Income | 7,082 | 9,777 | 6,193 | ||||||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 15 | (66) | (27) | ||||||||||||||
Net Income Attributable to Merck & Co., Inc. | $ | 7,067 | $ | 9,843 | $ | 6,220 | |||||||||||
Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders
|
$ | 2.79 | $ | 3.84 | $ | 2.34 | |||||||||||
Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders
|
$ | 2.78 | $ | 3.81 | $ | 2.32 |
2020 | 2019 | 2018 | |||||||||||||||
Net Income Attributable to Merck & Co., Inc. | $ | 7,067 | $ | 9,843 | $ | 6,220 | |||||||||||
Other Comprehensive Loss Net of Taxes: | |||||||||||||||||
Net unrealized (loss) gain on derivatives, net of reclassifications | (297) | (135) | 297 | ||||||||||||||
Net unrealized (loss) gain on investments, net of reclassifications | (18) | 96 | (10) | ||||||||||||||
Benefit plan net (loss) gain and prior service (cost) credit, net of amortization | (279) | (705) | (425) | ||||||||||||||
Cumulative translation adjustment | 153 | 96 | (223) | ||||||||||||||
(441) | (648) | (361) | |||||||||||||||
Comprehensive Income Attributable to Merck & Co., Inc. | $ | 6,626 | $ | 9,195 | $ | 5,859 |
2020 | 2019 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 8,062 | $ | 9,676 | |||||||
Short-term investments | — | 774 | |||||||||
Accounts receivable (net of allowance for doubtful accounts of $85 in 2020
and $86 in 2019)
|
7,851 | 6,778 | |||||||||
Inventories (excludes inventories of $2,197 in 2020 and $1,480 in 2019
classified in Other assets - see Note 7)
|
6,310 | 5,978 | |||||||||
Other current assets | 5,541 | 4,277 | |||||||||
Total current assets | 27,764 | 27,483 | |||||||||
Investments | 785 | 1,469 | |||||||||
Property, Plant and Equipment (at cost) | |||||||||||
Land | 350 | 343 | |||||||||
Buildings | 12,645 | 11,989 | |||||||||
Machinery, equipment and office furnishings | 16,649 | 15,394 | |||||||||
Construction in progress | 7,324 | 5,013 | |||||||||
36,968 | 32,739 | ||||||||||
Less: accumulated depreciation | 18,982 | 17,686 | |||||||||
17,986 | 15,053 | ||||||||||
Goodwill | 20,238 | 19,425 | |||||||||
Other Intangibles, Net | 14,604 | 14,196 | |||||||||
Other Assets | 10,211 | 6,771 | |||||||||
$ | 91,588 | $ | 84,397 | ||||||||
Liabilities and Equity | |||||||||||
Current Liabilities | |||||||||||
Loans payable and current portion of long-term debt | $ | 6,431 | $ | 3,610 | |||||||
Trade accounts payable | 4,594 | 3,738 | |||||||||
Accrued and other current liabilities | 13,053 | 12,549 | |||||||||
Income taxes payable | 1,575 | 736 | |||||||||
Dividends payable | 1,674 | 1,587 | |||||||||
Total current liabilities | 27,327 | 22,220 | |||||||||
Long-Term Debt | 25,360 | 22,736 | |||||||||
Deferred Income Taxes | 1,015 | 1,470 | |||||||||
Other Noncurrent Liabilities | 12,482 | 11,970 | |||||||||
Merck & Co., Inc. Stockholders’ Equity | |||||||||||
Common stock, $0.50 par value
Authorized - 6,500,000,000 shares
Issued - 3,577,103,522 shares in 2020 and 2019
|
1,788 | 1,788 | |||||||||
Other paid-in capital | 39,588 | 39,660 | |||||||||
Retained earnings | 47,362 | 46,602 | |||||||||
Accumulated other comprehensive loss | (6,634) | (6,193) | |||||||||
82,104 | 81,857 | ||||||||||
Less treasury stock, at cost:
1,046,877,695 shares in 2020 and 1,038,087,496 shares in 2019
|
56,787 | 55,950 | |||||||||
Total Merck & Co., Inc. stockholders’ equity | 25,317 | 25,907 | |||||||||
Noncontrolling Interests | 87 | 94 | |||||||||
Total equity | 25,404 | 26,001 | |||||||||
$ | 91,588 | $ | 84,397 |
Common
Stock |
Other
Paid-In Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Loss |
Treasury
Stock |
Non-
controlling Interests |
Total | |||||||||||||||||||||||||||||||||||
Balance January 1, 2018 | $1,788 | $ | 39,902 | $ | 41,350 | $ | (4,910) | $ | (43,794) | $ | 233 | $ | 34,569 | ||||||||||||||||||||||||||||
Net income attributable to Merck & Co., Inc. | — | — | 6,220 | — | — | — | 6,220 | ||||||||||||||||||||||||||||||||||
Adoption of new accounting standards | — | — | 322 | (274) | — | — | 48 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | (361) | — | — | (361) | ||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock ($1.99 per share)
|
— | — | (5,313) | — | — | — | (5,313) | ||||||||||||||||||||||||||||||||||
Treasury stock shares purchased | — | (1,000) | — | — | (8,091) | — | (9,091) | ||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | (27) | (27) | ||||||||||||||||||||||||||||||||||
Distributions attributable to noncontrolling interests | — | — | — | — | — | (25) | (25) | ||||||||||||||||||||||||||||||||||
Share-based compensation plans and other | — | (94) | — | — | 956 | — | 862 | ||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 1,788 | 38,808 | 42,579 | (5,545) | (50,929) | 181 | 26,882 | ||||||||||||||||||||||||||||||||||
Net income attributable to Merck & Co., Inc. | — | — | 9,843 | — | — | — | 9,843 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | (648) | — | — | (648) | ||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock ($2.26 per share)
|
— | — | (5,820) | — | — | — | (5,820) | ||||||||||||||||||||||||||||||||||
Treasury stock shares purchased | — | 1,000 | — | — | (5,780) | — | (4,780) | ||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | — | (66) | (66) | ||||||||||||||||||||||||||||||||||
Distributions attributable to noncontrolling interests | — | — | — | — | — | (21) | (21) | ||||||||||||||||||||||||||||||||||
Share-based compensation plans and other | — | (148) | — | — | 759 | — | 611 | ||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 1,788 | 39,660 | 46,602 | (6,193) | (55,950) | 94 | 26,001 | ||||||||||||||||||||||||||||||||||
Net income attributable to Merck & Co., Inc. | — | — | 7,067 | — | — | — | 7,067 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | (441) | — | — | (441) | ||||||||||||||||||||||||||||||||||
Cash dividends declared on common stock ($2.48 per share)
|
— | — | (6,307) | — | — | — | (6,307) | ||||||||||||||||||||||||||||||||||
Treasury stock shares purchased | — | — | — | — | (1,281) | — | (1,281) | ||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | 15 | 15 | ||||||||||||||||||||||||||||||||||
Distributions attributable to noncontrolling interests | — | — | — | — | — | (22) | (22) | ||||||||||||||||||||||||||||||||||
Share-based compensation plans and other | — | (72) | — | — | 444 | — | 372 | ||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | $ | 1,788 | $ | 39,588 | $ | 47,362 | $ | (6,634) | $ | (56,787) | $ | 87 | $ | 25,404 |
2020 | 2019 | 2018 | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||
Net income | $ | 7,082 | $ | 9,777 | $ | 6,193 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Amortization | 1,899 | 1,973 | 3,103 | ||||||||||||||
Depreciation | 1,726 | 1,679 | 1,416 | ||||||||||||||
Intangible asset impairment charges | 1,718 | 1,040 | 296 | ||||||||||||||
Charge for the acquisition of VelosBio Inc. | 2,660 | — | — | ||||||||||||||
Charge for the acquisition of Peloton Therapeutics, Inc. | — | 993 | — | ||||||||||||||
Charge for future payments related to collaboration license options | — | — | 650 | ||||||||||||||
Deferred income taxes | (668) | (556) | (509) | ||||||||||||||
Share-based compensation | 475 | 417 | 348 | ||||||||||||||
Other | (49) | 184 | 978 | ||||||||||||||
Net changes in assets and liabilities: | |||||||||||||||||
Accounts receivable | (1,002) | 294 | (418) | ||||||||||||||
Inventories | (855) | (508) | (911) | ||||||||||||||
Trade accounts payable | 724 | 399 | 230 | ||||||||||||||
Accrued and other current liabilities | (1,138) | 376 | (341) | ||||||||||||||
Income taxes payable | 560 | (2,359) | 827 | ||||||||||||||
Noncurrent liabilities | (453) | (237) | (266) | ||||||||||||||
Other | (2,426) | (32) | (674) | ||||||||||||||
Net Cash Provided by Operating Activities | 10,253 | 13,440 | 10,922 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||
Capital expenditures | (4,684) | (3,473) | (2,615) | ||||||||||||||
Purchase of Seagen Inc. common stock | (1,000) | — | — | ||||||||||||||
Purchases of securities and other investments | (95) | (3,202) | (7,994) | ||||||||||||||
Proceeds from sales of securities and other investments | 2,812 | 8,622 | 15,252 | ||||||||||||||
Acquisition of VelosBio Inc., net of cash acquired | (2,696) | — | — | ||||||||||||||
Acquisition of ArQule, Inc., net of cash acquired | (2,545) | — | — | ||||||||||||||
Acquisition of Antelliq Corporation, net of cash acquired | — | (3,620) | — | ||||||||||||||
Acquisition of Peloton Therapeutics, Inc., net of cash acquired | — | (1,040) | — | ||||||||||||||
Other acquisitions, net of cash acquired | (1,365) | (294) | (431) | ||||||||||||||
Other | 130 | 378 | 102 | ||||||||||||||
Net Cash (Used in) Provided by Investing Activities | (9,443) | (2,629) | 4,314 | ||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||
Net change in short-term borrowings | 2,549 | (3,710) | 5,124 | ||||||||||||||
Payments on debt | (1,957) | — | (4,287) | ||||||||||||||
Proceeds from issuance of debt | 4,419 | 4,958 | — | ||||||||||||||
Purchases of treasury stock | (1,281) | (4,780) | (9,091) | ||||||||||||||
Dividends paid to stockholders | (6,215) | (5,695) | (5,172) | ||||||||||||||
Proceeds from exercise of stock options | 89 | 361 | 591 | ||||||||||||||
Other | (436) | 5 | (325) | ||||||||||||||
Net Cash Used in Financing Activities | (2,832) | (8,861) | (13,160) | ||||||||||||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 253 | 17 | (205) | ||||||||||||||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (1,769) | 1,967 | 1,871 | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes $258 of restricted cash at January 1, 2020 included in Other Assets - see Note 6)
|
9,934 | 7,967 | 6,096 | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash at End of Year (includes $103 of restricted cash at December 31, 2020 included in Other Assets - see Note 6)
|
$ | 8,165 | $ | 9,934 | $ | 7,967 |
($ in millions) | January 16, 2020 | ||||
Cash and cash equivalents | $ | 145 | |||
IPR&D MK-1026 (formerly ARQ 531) (1)
|
2,280 | ||||
Licensing arrangement for ARQ 087 | 80 | ||||
Deferred income tax liabilities | (361) | ||||
Other assets and liabilities, net | 34 | ||||
Total identifiable net assets
|
2,178 | ||||
Goodwill (2)
|
512 | ||||
Consideration transferred | $ | 2,690 |
($ in millions) | April 1, 2019 | ||||
Cash and cash equivalents | $ | 31 | |||
Accounts receivable | 73 | ||||
Inventories | 93 | ||||
Property, plant and equipment | 60 | ||||
Identifiable intangible assets (useful lives ranging from 18-24 years) (1)
|
2,689 | ||||
Deferred income tax liabilities | (589) | ||||
Other assets and liabilities, net | (82) | ||||
Total identifiable net assets | 2,275 | ||||
Goodwill (2)
|
1,376 | ||||
Consideration transferred | $ | 3,651 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Alliance revenue - Lynparza | $ | 725 | $ | 444 | $ | 187 | |||||||||||
Alliance revenue - Koselugo | 8 | — | — | ||||||||||||||
Total alliance revenue | $ | 733 | $ | 444 | $ | 187 | |||||||||||
Cost of sales (1)
|
247 | 148 | 93 | ||||||||||||||
Selling, general and administrative | 160 | 138 | 48 | ||||||||||||||
Research and development | 133 | 168 | 152 | ||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||
Receivables from AstraZeneca included in Other current assets
|
$ | 215 | $ | 128 | |||||||||||||
Payables to AstraZeneca included in Accrued and other current liabilities (2)
|
423 | 577 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Alliance revenue - Lenvima | $ | 580 | $ | 404 | $ | 149 | |||||||||||
Cost of sales (1)
|
271 | 206 | 39 | ||||||||||||||
Selling, general and administrative | 73 | 80 | 13 | ||||||||||||||
Research and development (2)
|
185 | 189 | 1,489 | ||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||
Receivables from Eisai included in Other current assets
|
$ | 157 | $ | 150 | |||||||||||||
Payables to Eisai included in Accrued and other current liabilities (3)
|
335 | 700 | |||||||||||||||
Payables to Eisai included in Other Noncurrent Liabilities (4)
|
600 | 525 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Alliance revenue - Adempas | $ | 281 | $ | 204 | $ | 139 | |||||||||||
Net sales of Adempas recorded by Merck | 220 | 215 | 190 | ||||||||||||||
Total sales | $ | 501 | $ | 419 | $ | 329 | |||||||||||
Cost of sales (1)
|
115 | 113 | 216 | ||||||||||||||
Selling, general and administrative | 61 | 41 | 35 | ||||||||||||||
Research and development | 63 | 126 | 127 | ||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||
Receivables from Bayer included in Other current assets
|
$ | 65 | $ | 49 | |||||||||||||
Payables to Bayer included in Other Noncurrent Liabilities (2)
|
— | 375 |
Separation
Costs |
Accelerated
Depreciation |
Other | Total | ||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Cost of sales | $ | — | $ | 143 | $ | 32 | $ | 175 | |||||||||||||||
Selling, general and administrative | — | 44 | 3 | 47 | |||||||||||||||||||
Research and development | — | 81 | 2 | 83 | |||||||||||||||||||
Restructuring costs | 385 | — | 193 | 578 | |||||||||||||||||||
$ | 385 | $ | 268 | $ | 230 | $ | 883 | ||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Cost of sales | $ | — | $ | 198 | $ | 53 | $ | 251 | |||||||||||||||
Selling, general and administrative | — | 33 | 1 | 34 | |||||||||||||||||||
Research and development | — | 2 | 2 | 4 | |||||||||||||||||||
Restructuring costs | 572 | — | 66 | 638 | |||||||||||||||||||
$ | 572 | $ | 233 | $ | 122 | $ | 927 | ||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
Cost of sales | $ | — | $ | 10 | $ | 11 | $ | 21 | |||||||||||||||
Selling, general and administrative | — | 2 | 1 | 3 | |||||||||||||||||||
Research and development | — | (13) | 15 | 2 | |||||||||||||||||||
Restructuring costs | 473 | — | 159 | 632 | |||||||||||||||||||
$ | 473 | $ | (1) | $ | 186 | $ | 658 |
Separation
Costs |
Accelerated
Depreciation |
Other | Total | ||||||||||||||||||||
Restructuring reserves January 1, 2019
|
$ | 443 | $ | — | $ | 91 | $ | 534 | |||||||||||||||
Expenses | 572 | 233 | 122 | 927 | |||||||||||||||||||
(Payments) receipts, net | (325) | — | (136) | (461) | |||||||||||||||||||
Non-cash activity | — | (233) | (8) | (241) | |||||||||||||||||||
Restructuring reserves December 31, 2019
|
690 | — | 69 | 759 | |||||||||||||||||||
Expenses | 385 | 268 | 230 | 883 | |||||||||||||||||||
(Payments) receipts, net | (508) | — | (301) | (809) | |||||||||||||||||||
Non-cash activity | — | (268) | 38 | (230) | |||||||||||||||||||
Restructuring reserves December 31, 2020 (1)
|
$ | 567 | $ | — | $ | 36 | $ | 603 |
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
|
||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Net Investment Hedging Relationships | |||||||||||||||||||||||||||||||||||
Foreign exchange contracts
|
$ | 26 | $ | (10) | $ | (18) | $ | (19) | $ | (31) | $ | (11) | |||||||||||||||||||||||
Euro-denominated notes | 385 | (75) | (183) | — | — | — |
2020 | |||||||||||||||||
Debt Instrument | Par Value of Debt | Number of Interest Rate Swaps Held | Total Swap Notional Amount | ||||||||||||||
3.875% notes due 2021 (1)
|
$ | 1,150 | 5 | $ | 1,150 | ||||||||||||
2.40% notes due 2022
|
1,000 | 4 | 1,000 | ||||||||||||||
2.35% notes due 2022
|
1,250 | 5 | 1,250 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Fair Value of
Derivative |
U.S. Dollar
Notional |
Fair Value of
Derivative |
U.S. Dollar
Notional |
||||||||||||||||||||||||||||||||||||||
Balance Sheet Caption | Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments
|
|||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Other current assets | $ | 1 | $ | — | $ | 1,150 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Interest rate swap contracts | Other Assets | 54 | — | 2,250 | 15 | — | 3,400 | ||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Accrued and other current liabilities | — | — | — | — | 1 | 1,250 | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | 12 | — | 3,183 | 152 | — | 6,117 | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other Assets | 45 | — | 2,030 | 55 | — | 2,160 | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued and other current liabilities | — | 217 | 5,049 | — | 22 | 1,748 | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other Noncurrent Liabilities | — | 1 | 52 | — | 1 | 53 | ||||||||||||||||||||||||||||||||||
$ | 112 | $ | 218 | $ | 13,714 | $ | 222 | $ | 24 | $ | 14,728 | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments
|
|||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 70 | $ | — | $ | 7,260 | $ | 66 | $ | — | $ | 7,245 | ||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued and other current liabilities | — | 307 | 11,810 | — | 73 | 8,693 | ||||||||||||||||||||||||||||||||||
$ | 70 | $ | 307 | $ | 19,070 | $ | 66 | $ | 73 | $ | 15,938 | ||||||||||||||||||||||||||||||
$ | 182 | $ | 525 | $ | 32,784 | $ | 288 | $ | 97 | $ | 30,666 |
2020 | 2019 | ||||||||||||||||||||||
Asset | Liability | Asset | Liability | ||||||||||||||||||||
Gross amounts recognized in the consolidated balance sheet | $ | 182 | $ | 525 | $ | 288 | $ | 97 | |||||||||||||||
Gross amounts subject to offset in master netting arrangements not offset in the consolidated balance sheet
|
(156) | (156) | (84) | (84) | |||||||||||||||||||
Cash collateral posted/received | — | (36) | (34) | — | |||||||||||||||||||
Net amounts | $ | 26 | $ | 333 | $ | 170 | $ | 13 |
Sales |
Other (income) expense, net (1)
|
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Statement Line Items in which Effects of Fair Value or Cash Flow Hedges are Recorded | $ | 47,994 | $ | 46,840 | $ | 42,294 | $ | (886) | 139 | (402) | $ | (441) | $ | (648) | $ | (361) | |||||||||||||||||||||||||||||||||||||
(Gain) loss on fair value hedging relationships | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged items
|
— | — | — | 40 | 95 | (27) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments
|
— | — | — | (76) | (65) | 50 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Impact of cash flow hedging relationships | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (loss) gain recognized in OCI on derivatives
|
— | — | — | — | — | — | (383) | 87 | 228 | ||||||||||||||||||||||||||||||||||||||||||||
(Decrease) increase in Sales as a result of AOCI reclassifications
|
(6) | 255 | (160) | — | — | — | 6 | (255) | 160 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain recognized in Other (income) expense, net on derivatives
|
— | — | — | (4) | (4) | (4) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Amount of loss recognized in OCI on derivatives
|
— | — | — | — | — | — | (4) | (6) | (4) |
Amount of Derivative Pretax (Gain) Loss Recognized in Income | |||||||||||||||||||||||
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Income Statement Caption | ||||||||||||||||||||||
Foreign exchange contracts (1)
|
Other (income) expense, net | $ | (12) | $ | 174 | $ | (260) | ||||||||||||||||
Foreign exchange contracts (2)
|
Sales | 13 | 1 | (8) | |||||||||||||||||||
Interest rate contracts (3)
|
Other (income) expense, net | 9 | — | — | |||||||||||||||||||
Forward contract related to Seagen common stock | Research and development expenses | 15 | — | — |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized
Cost |
Gross Unrealized |
Fair
Value |
Amortized
Cost |
Gross Unrealized |
Fair
Value |
||||||||||||||||||||||||||||||||||||||||||
|
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities | $ | 84 | $ | — | $ | — | $ | 84 | $ | 266 | $ | 3 | $ | — | $ | 269 | |||||||||||||||||||||||||||||||
Foreign government bonds | 5 | — | — | 5 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | 668 | — | — | 668 | |||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | — | — | — | — | 608 | 13 | — | 621 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | 226 | 1 | — | 227 | |||||||||||||||||||||||||||||||||||||||
Total debt securities | 89 | — | — | 89 | 1,768 | 17 | — | 1,785 | |||||||||||||||||||||||||||||||||||||||
Publicly traded equity securities (1)
|
1,787 | 838 | |||||||||||||||||||||||||||||||||||||||||||||
Total debt and publicly traded equity securities
|
$ | 1,876 | $ | 2,623 |
Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | $ | — | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | — | 668 | — | 668 | |||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | — | — | — | — | — | 621 | — | 621 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | — | 227 | — | 227 | |||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities
|
— | — | — | — | — | 209 | — | 209 | |||||||||||||||||||||||||||||||||||||||
Publicly traded equity securities
|
780 | — | — | 780 | 518 | — | — | 518 | |||||||||||||||||||||||||||||||||||||||
780 | 5 | — | 785 | 518 | 1,725 | — | 2,243 | ||||||||||||||||||||||||||||||||||||||||
Other assets (1)
|
|||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities
|
84 | — | — | 84 | 60 | — | — | 60 | |||||||||||||||||||||||||||||||||||||||
Publicly traded equity securities
|
1,007 | — | — | 1,007 | 320 | — | — | 320 | |||||||||||||||||||||||||||||||||||||||
1,091 | — | — | 1,091 | 380 | — | — | 380 | ||||||||||||||||||||||||||||||||||||||||
Derivative assets (2)
|
|||||||||||||||||||||||||||||||||||||||||||||||
Forward exchange contracts | — | 90 | — | 90 | — | 169 | — | 169 | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps | — | 55 | — | 55 | — | 15 | — | 15 | |||||||||||||||||||||||||||||||||||||||
Purchased currency options | — | 37 | — | 37 | — | 104 | — | 104 | |||||||||||||||||||||||||||||||||||||||
— | 182 | — | 182 | — | 288 | — | 288 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 1,871 | $ | 187 | $ | — | $ | 2,058 | $ | 898 | $ | 2,013 | $ | — | $ | 2,911 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 841 | $ | 841 | $ | — | $ | — | $ | 767 | $ | 767 | |||||||||||||||||||||||||||||||
Derivative liabilities (2)
|
|||||||||||||||||||||||||||||||||||||||||||||||
Forward exchange contracts | — | 505 | — | 505 | — | 95 | — | 95 | |||||||||||||||||||||||||||||||||||||||
Written currency options | — | 20 | — | 20 | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps | — | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||
— | 525 | — | 525 | — | 97 | — | 97 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 525 | $ | 841 | $ | 1,366 | $ | — | $ | 97 | $ | 767 | $ | 864 |
2020 | 2019 | ||||||||||
Fair value January 1 | $ | 767 | $ | 788 | |||||||
Additions | 97 | — | |||||||||
Changes in estimated fair value (1)
|
83 | 64 | |||||||||
Payments | (106) | (85) | |||||||||
Fair value December 31 (2)(3)
|
$ | 841 | $ | 767 |
2020 | 2019 | ||||||||||
Finished goods | $ | 1,963 | $ | 1,772 | |||||||
Raw materials and work in process | 6,420 | 5,650 | |||||||||
Supplies | 206 | 207 | |||||||||
Total (approximates current cost) | 8,589 | 7,629 | |||||||||
Decrease to LIFO cost | (82) | (171) | |||||||||
$ | 8,507 | $ | 7,458 | ||||||||
Recognized as: | |||||||||||
Inventories | $ | 6,310 | $ | 5,978 | |||||||
Other assets | 2,197 | 1,480 |
Pharmaceutical | Animal Health | All Other | Total | ||||||||||||||||||||
Balance January 1, 2019
|
$ | 16,162 | $ | 1,870 | $ | 221 | $ | 18,253 | |||||||||||||||
Acquisitions | 19 | 1,322 | — | 1,341 | |||||||||||||||||||
Impairments | — | — | (162) | (162) | |||||||||||||||||||
Other (1)
|
— | — | (7) | (7) | |||||||||||||||||||
Balance December 31, 2019 (2)
|
16,181 | 3,192 | 52 | 19,425 | |||||||||||||||||||
Acquisitions | 742 | 105 | — | 847 | |||||||||||||||||||
Divestitures | — | — | (54) | (54) | |||||||||||||||||||
Other (1)
|
47 | (29) | 2 | 20 | |||||||||||||||||||
Balance December 31, 2020 (2)
|
$ | 16,970 | $ | 3,268 | $ | — | $ | 20,238 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Net |
Gross
Carrying Amount |
Accumulated
Amortization |
Net | |||||||||||||||||||||||||||||
Products and product rights | $ | 45,087 | $ | 39,925 | $ | 5,162 | $ | 45,947 | $ | 38,852 | $ | 7,095 | |||||||||||||||||||||||
Licenses | 4,177 | 1,387 | 2,790 | 3,185 | 824 | 2,361 | |||||||||||||||||||||||||||||
IPR&D | 3,228 | — | 3,228 | 1,032 | — | 1,032 | |||||||||||||||||||||||||||||
Trade names | 2,882 | 352 | 2,530 | 2,899 | 217 | 2,682 | |||||||||||||||||||||||||||||
Other | 2,223 | 1,329 | 894 | 2,261 | 1,235 | 1,026 | |||||||||||||||||||||||||||||
$ | 57,597 | $ | 42,993 | $ | 14,604 | $ | 55,324 | $ | 41,128 | $ | 14,196 |
2020 | 2019 | ||||||||||
2.75% notes due 2025
|
$ | 2,493 | $ | 2,492 | |||||||
3.70% notes due 2045
|
1,976 | 1,975 | |||||||||
2.80% notes due 2023
|
1,748 | 1,747 | |||||||||
3.40% notes due 2029
|
1,734 | 1,732 | |||||||||
4.00% notes due 2049
|
1,469 | 1,468 | |||||||||
2.35% notes due 2022
|
1,269 | 1,248 | |||||||||
4.15% notes due 2043
|
1,238 | 1,238 | |||||||||
1.45% notes due 2030
|
1,233 | — | |||||||||
1.875% euro-denominated notes due 2026
|
1,218 | 1,107 | |||||||||
2.45% notes due 2050
|
1,211 | — | |||||||||
2.40% notes due 2022
|
1,032 | 1,010 | |||||||||
0.75% notes due 2026
|
991 | — | |||||||||
3.90% notes due 2039
|
983 | 982 | |||||||||
2.35% notes due 2040
|
982 | — | |||||||||
2.90% notes due 2024
|
746 | 745 | |||||||||
6.50% notes due 2033
|
719 | 722 | |||||||||
0.50% euro-denominated notes due 2024
|
611 | 555 | |||||||||
1.375% euro-denominated notes due 2036
|
606 | 551 | |||||||||
2.50% euro-denominated notes due 2034
|
605 | 550 | |||||||||
3.60% notes due 2042
|
491 | 490 | |||||||||
6.55% notes due 2037
|
411 | 412 | |||||||||
5.75% notes due 2036
|
338 | 338 | |||||||||
5.95% debentures due 2028
|
306 | 306 | |||||||||
5.85% notes due 2039
|
271 | 271 | |||||||||
6.40% debentures due 2028
|
250 | 250 | |||||||||
6.30% debentures due 2026
|
135 | 135 | |||||||||
3.875% notes due 2021
|
— | 1,151 | |||||||||
1.125% euro-denominated notes due 2021
|
— | 1,113 | |||||||||
Other | 294 | 148 | |||||||||
$ | 25,360 | $ | 22,736 |
December 31 | 2020 | 2019 | |||||||||||||||
Assets | |||||||||||||||||
Other Assets (1)
|
$ | 1,725 | $ | 1,073 | |||||||||||||
Liabilities | |||||||||||||||||
Accrued and other current liabilities | 300 | 236 | |||||||||||||||
Other Noncurrent Liabilities | 1,362 | 768 | |||||||||||||||
$ | 1,662 | $ | 1,004 | ||||||||||||||
Weighted-average remaining lease term (years) | 8.0 | 7.4 | |||||||||||||||
Weighted-average discount rate | 2.8 | % | 3.2 | % |
2021 | $ | 336 | |||
2022 | 277 | ||||
2023 | 252 | ||||
2024 | 187 | ||||
2025 | 162 | ||||
Thereafter | 665 | ||||
Total lease payments | 1,879 | ||||
Less: Imputed interest | 217 | ||||
$ | 1,662 |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
|
Common
Stock |
Treasury
Stock |
Common
Stock |
Treasury
Stock |
Common
Stock |
Treasury
Stock |
|||||||||||||||||||||||||||||
Balance January 1 | 3,577 | 1,038 | 3,577 | 985 | 3,577 | 880 | |||||||||||||||||||||||||||||
Purchases of treasury stock | — | 16 | — | 66 | — | 122 | |||||||||||||||||||||||||||||
Issuances (1)
|
— | (7) | — | (13) | — | (17) | |||||||||||||||||||||||||||||
Balance December 31 | 3,577 | 1,047 | 3,577 | 1,038 | 3,577 | 985 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Expected dividend yield | 3.1 | % | 3.2 | % | 3.4 | % | |||||||||||
Risk-free interest rate | 0.4 | % | 2.4 | % | 2.9 | % | |||||||||||
Expected volatility | 22.1 | % | 18.7 | % | 19.1 | % | |||||||||||
Expected life (years) | 5.8 | 5.9 | 6.1 |
Number
of Options |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Outstanding January 1, 2020
|
17,868 | $ | 59.88 | ||||||||||||||||||||
Granted | 3,564 | 77.67 | |||||||||||||||||||||
Exercised | (1,685) | 52.73 | |||||||||||||||||||||
Forfeited | (301) | 67.73 | |||||||||||||||||||||
Outstanding December 31, 2020 | 19,446 | $ | 63.64 | 6.27 | $ | 353 | |||||||||||||||||
Exercisable December 31, 2020 | 13,141 | $ | 58.30 | 5.13 | $ | 309 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Total intrinsic value of stock options exercised | $ | 51 | $ | 295 | $ | 348 | |||||||||||
Fair value of stock options vested | 25 | 27 | 29 | ||||||||||||||
Cash received from the exercise of stock options | 89 | 361 | 591 |
RSUs | PSUs | |||||||||||||||||||||||||
|
Number
of Shares |
Weighted
Average Grant Date Fair Value |
Number
of Shares |
Weighted
Average Grant Date Fair Value |
||||||||||||||||||||||
Nonvested January 1, 2020
|
13,527 | $ | 67.58 | 1,972 | $ | 69.18 | ||||||||||||||||||||
Granted | 6,627 | 77.79 | 996 | 77.82 | ||||||||||||||||||||||
Vested | (7,511) | 65.70 | (824) | 64.01 | ||||||||||||||||||||||
Forfeited | (728) | 72.06 | (44) | 80.06 | ||||||||||||||||||||||
Nonvested December 31, 2020 | 11,915 | $ | 74.17 | 2,100 | $ | 75.08 |
Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | International | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 360 | $ | 293 | $ | 326 | $ | 301 | $ | 238 | $ | 238 | $ | 52 | $ | 48 | $ | 57 | |||||||||||||||||||||||||||||||||||
Interest cost | 431 | 458 | 432 | 137 | 177 | 178 | 57 | 69 | 69 | ||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets
|
(774) | (817) | (851) | (415) | (426) | (431) | (75) | (72) | (83) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost
|
(49) | (49) | (50) | (18) | (12) | (13) | (73) | (78) | (84) | ||||||||||||||||||||||||||||||||||||||||||||
Net loss (gain) amortization | 303 | 151 | 232 | 127 | 64 | 84 | (18) | (10) | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Termination benefits | 10 | 31 | 19 | 3 | 8 | 2 | 2 | 5 | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Curtailments | 10 | 14 | 10 | — | 6 | 1 | (4) | (11) | (8) | ||||||||||||||||||||||||||||||||||||||||||||
Settlements | 13 | — | 5 | 15 | 1 | 13 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (credit) | $ | 304 | $ | 81 | $ | 123 | $ | 150 | $ | 56 | $ | 72 | $ | (59) | $ | (49) | $ | (45) |
Pension Benefits |
Other
Postretirement Benefits |
||||||||||||||||||||||||||||||||||
U.S. | International | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Fair value of plan assets January 1 | $ | 11,361 | $ | 9,648 | $ | 10,163 | $ | 8,580 | $ | 1,102 | $ | 968 | |||||||||||||||||||||||
Actual return on plan assets | 1,908 | 2,165 | 1,026 | 1,505 | 175 | 203 | |||||||||||||||||||||||||||||
Company contributions | 199 | 130 | 387 | 262 | 19 | 14 | |||||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | 746 | 31 | — | — | |||||||||||||||||||||||||||||
Benefits paid | (751) | (582) | (215) | (230) | (93) | (104) | |||||||||||||||||||||||||||||
Settlements | (45) | — | (117) | (12) | — | — | |||||||||||||||||||||||||||||
Other | — | — | 59 | 27 | 18 | 21 | |||||||||||||||||||||||||||||
Fair value of plan assets December 31 | $ | 12,672 | $ | 11,361 | $ | 12,049 | $ | 10,163 | $ | 1,221 | $ | 1,102 | |||||||||||||||||||||||
Benefit obligation January 1 | $ | 13,003 | $ | 10,620 | $ | 10,612 | $ | 9,083 | $ | 1,673 | $ | 1,615 | |||||||||||||||||||||||
Service cost | 360 | 293 | 301 | 238 | 52 | 48 | |||||||||||||||||||||||||||||
Interest cost | 431 | 458 | 137 | 177 | 57 | 69 | |||||||||||||||||||||||||||||
Actuarial losses (gains) (1)
|
1,594 | 2,165 | 1,036 | 1,313 | (98) | 21 | |||||||||||||||||||||||||||||
Benefits paid | (751) | (582) | (215) | (230) | (93) | (104) | |||||||||||||||||||||||||||||
Effects of exchange rate changes | — | — | 794 | 4 | (3) | 1 | |||||||||||||||||||||||||||||
Plan amendments | — | — | (64) | 1 | — | — | |||||||||||||||||||||||||||||
Curtailments | 11 | 18 | (8) | 3 | (1) | — | |||||||||||||||||||||||||||||
Termination benefits | 10 | 31 | 3 | 8 | 2 | 5 | |||||||||||||||||||||||||||||
Settlements | (45) | — | (117) | (12) | — | — | |||||||||||||||||||||||||||||
Other | — | — | 55 | 27 | 18 | 18 | |||||||||||||||||||||||||||||
Benefit obligation December 31 | $ | 14,613 | $ | 13,003 | $ | 12,534 | $ | 10,612 | $ | 1,607 | $ | 1,673 | |||||||||||||||||||||||
Funded status December 31 | $ | (1,941) | $ | (1,642) | $ | (485) | $ | (449) | $ | (386) | $ | (571) | |||||||||||||||||||||||
Recognized as: | |||||||||||||||||||||||||||||||||||
Other Assets | $ | — | $ | — | $ | 941 | $ | 837 | $ | — | $ | — | |||||||||||||||||||||||
Accrued and other current liabilities | (82) | (92) | (13) | (18) | (9) | (10) | |||||||||||||||||||||||||||||
Other Noncurrent Liabilities | (1,859) | (1,550) | (1,413) | (1,268) | (377) | (561) |
U.S. | International | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Pension plans with a projected benefit obligation in excess of plan assets | |||||||||||||||||||||||
Projected benefit obligation | $ | 14,613 | $ | 13,003 | $ | 8,951 | $ | 7,421 | |||||||||||||||
Fair value of plan assets | 12,672 | 11,361 | 7,526 | 6,135 | |||||||||||||||||||
Pension plans with an accumulated benefit obligation in excess of plan assets | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 13,489 | $ | 12,009 | $ | 4,288 | $ | 2,476 | |||||||||||||||
Fair value of plan assets | 11,685 | 10,484 | 3,033 | 1,501 |
Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 |
NAV (1)
|
Total | Level 1 | Level 2 | Level 3 |
NAV (1)
|
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | — | $ | — | $ | 303 | $ | 308 | $ | 3 | $ | — | $ | — | $ | 236 | $ | 239 | |||||||||||||||||||||||||||||||||||||||
Investment funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets equities
|
206 | — | — | 3,884 | 4,090 | 205 | — | — | 3,542 | 3,747 | |||||||||||||||||||||||||||||||||||||||||||||||||
Emerging markets equities
|
169 | — | — | 927 | 1,096 | 165 | — | — | 723 | 888 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 89 | — | — | 89 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
— | — | — | — | — | — | — | — | 173 | 173 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets
|
2,819 | — | — | — | 2,819 | 2,451 | — | — | — | 2,451 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
— | 2,236 | — | — | 2,236 | — | 2,094 | — | — | 2,094 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations
|
— | 1,994 | — | — | 1,994 | — | 1,582 | — | — | 1,582 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities
|
— | 33 | — | — | 33 | — | 178 | — | — | 178 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | — | — | 7 | — | 7 | — | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | $ | 3,199 | $ | 4,352 | $ | 7 | $ | 5,114 | $ | 12,672 | $ | 2,824 | $ | 3,854 | $ | 9 | $ | 4,674 | $ | 11,361 | |||||||||||||||||||||||||||||||||||||||
International Pension Plans
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 110 | $ | 1 | $ | — | $ | 20 | $ | 131 | $ | 70 | $ | 1 | $ | — | $ | 15 | $ | 86 | |||||||||||||||||||||||||||||||||||||||
Investment funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets equities
|
475 | 4,286 | — | 118 | 4,879 | 546 | 3,761 | — | 96 | 4,403 | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
1,516 | 2,614 | — | 172 | 4,302 | 462 | 2,534 | — | 207 | 3,203 | |||||||||||||||||||||||||||||||||||||||||||||||||
Emerging markets equities
|
154 | — | — | 92 | 246 | 66 | 96 | — | 90 | 252 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations
|
5 | 12 | — | 172 | 189 | 5 | 11 | — | 109 | 125 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other fixed income obligations | 9 | 11 | — | 4 | 24 | 9 | 6 | — | — | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
Real estate
|
— | 1 | — | 15 | 16 | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets
|
505 | — | — | — | 505 | 565 | — | — | — | 565 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
3 | 486 | — | 3 | 492 | 3 | 376 | — | — | 379 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations
|
1 | 174 | — | 2 | 177 | 1 | 135 | — | — | 136 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities
|
— | 70 | — | — | 70 | — | 61 | — | — | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance contracts (2)
|
— | 76 | 935 | 1 | 1,012 | — | 65 | 851 | — | 916 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other
|
1 | 5 | — | — | 6 | — | 5 | — | 16 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value
|
$ | 2,779 | $ | 7,736 | $ | 935 | $ | 599 | $ | 12,049 | $ | 1,727 | $ | 7,052 | $ | 851 | $ | 533 | $ | 10,163 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Insurance
Contracts |
Real
Estate |
Other | Total |
Insurance
Contracts |
Real
Estate |
Other | Total | ||||||||||||||||||||||||||||||||||||||||
U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1 | $ | — | $ | — | $ | 9 | $ | 9 | $ | — | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at December 31
|
— | — | (5) | (5) | — | — | (8) | (8) | |||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the year
|
— | — | 5 | 5 | — | — | 8 | 8 | |||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | — | — | (2) | (2) | — | — | (4) | (4) | |||||||||||||||||||||||||||||||||||||||
Balance December 31 | $ | — | $ | — | $ | 7 | $ | 7 | $ | — | $ | — | $ | 9 | $ | 9 | |||||||||||||||||||||||||||||||
International Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1 | $ | 851 | $ | — | $ | — | $ | 851 | $ | 811 | $ | 1 | $ | 1 | $ | 813 | |||||||||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at December 31
|
103 | — | — | 103 | 54 | — | — | 54 | |||||||||||||||||||||||||||||||||||||||
Purchases and sales, net | (17) | — | — | (17) | (14) | (1) | (1) | (16) | |||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | (2) | — | — | (2) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance December 31 | $ | 935 | $ | — | $ | — | $ | 935 | $ | 851 | $ | — | $ | — | $ | 851 |
Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 |
NAV (1)
|
Total | Level 1 | Level 2 | Level 3 |
NAV (1)
|
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 31 | $ | — | $ | — | $ | 28 | $ | 59 | $ | 52 | $ | — | $ | — | $ | 22 | $ | 74 | |||||||||||||||||||||||||||||||||||||||
Investment funds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets equities
|
19 | — | — | 355 | 374 | 19 | — | — | 324 | 343 | |||||||||||||||||||||||||||||||||||||||||||||||||
Emerging markets equities
|
16 | — | — | 85 | 101 | 15 | — | — | 66 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
1 | — | — | — | 1 | 1 | — | — | 16 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities | — | 8 | — | — | 8 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed markets
|
258 | — | — | — | 258 | 225 | — | — | — | 225 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government and agency obligations
|
— | 221 | — | — | 221 | — | 196 | — | — | 196 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations
|
— | 196 | — | — | 196 | — | 149 | — | — | 149 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and asset-backed securities
|
— | 3 | — | — | 3 | — | 17 | — | — | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets at fair value | $ | 325 | $ | 428 | $ | — | $ | 468 | $ | 1,221 | $ | 312 | $ | 362 | $ | — | $ | 428 | $ | 1,102 |
U.S. Pension Benefits |
International Pension
Benefits |
Other
Postretirement Benefits |
|||||||||||||||
2021 | $ | 816 | $ | 274 | $ | 85 | |||||||||||
2022 | 786 | 277 | 86 | ||||||||||||||
2023 | 781 | 284 | 87 | ||||||||||||||
2024 | 772 | 285 | 89 | ||||||||||||||
2025 | 782 | 287 | 91 | ||||||||||||||
2026 — 2030 | 4,271 | 1,688 | 474 |
Pension Plans |
Other Postretirement
Benefit Plans |
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | International | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) gain arising during the period | $ | (448) | $ | (816) | $ | (397) | $ | (407) | $ | (227) | $ | (505) | $ | 198 | $ | 112 | $ | 186 | |||||||||||||||||||||||||||||||||||
Prior service (cost) credit arising during the period
|
(1) | (4) | (4) | 62 | (1) | (10) | (3) | (11) | 2 | ||||||||||||||||||||||||||||||||||||||||||||
$ | (449) | $ | (820) | $ | (401) | $ | (345) | $ | (228) | $ | (515) | $ | 195 | $ | 101 | $ | 188 | ||||||||||||||||||||||||||||||||||||
Net loss (gain) amortization included in benefit cost | $ | 303 | $ | 151 | $ | 232 | $ | 127 | $ | 64 | $ | 84 | $ | (18) | $ | (10) | $ | 1 | |||||||||||||||||||||||||||||||||||
Prior service credit amortization included in benefit cost
|
(49) | (49) | (50) | (18) | (12) | (13) | (73) | (78) | (84) | ||||||||||||||||||||||||||||||||||||||||||||
$ | 254 | $ | 102 | $ | 182 | $ | 109 | $ | 52 | $ | 71 | $ | (91) | $ | (88) | $ | (83) |
U.S. Pension and Other
Postretirement Benefit Plans |
International Pension Plans | ||||||||||||||||||||||||||||||||||
December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Discount rate | 3.40 | % | 4.40 | % | 3.70 | % | 1.50 | % | 2.20 | % | 2.10 | % | |||||||||||||||||||||||
Expected rate of return on plan assets | 7.30 | % | 8.10 | % | 8.20 | % | 4.40 | % | 4.90 | % | 5.10 | % | |||||||||||||||||||||||
Salary growth rate | 4.20 | % | 4.30 | % | 4.30 | % | 2.80 | % | 2.80 | % | 2.90 | % | |||||||||||||||||||||||
Interest crediting rate | 4.90 | % | 3.40 | % | 3.30 | % | 2.80 | % | 2.90 | % | 2.80 | % | |||||||||||||||||||||||
Benefit obligation | |||||||||||||||||||||||||||||||||||
Discount rate | 2.70 | % | 3.40 | % | 4.40 | % | 1.10 | % | 1.50 | % | 2.20 | % | |||||||||||||||||||||||
Salary growth rate | 4.60 | % | 4.20 | % | 4.30 | % | 2.80 | % | 2.80 | % | 2.80 | % | |||||||||||||||||||||||
Interest crediting rate | 4.70 | % | 4.90 | % | 3.40 | % | 3.00 | % | 2.80 | % | 2.90 | % |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Interest income | $ | (59) | $ | (274) | $ | (343) | |||||||||||
Interest expense | 831 | 893 | 772 | ||||||||||||||
Exchange losses | 145 | 187 | 145 | ||||||||||||||
Income from investments in equity securities, net (1)
|
(1,338) | (170) | (324) | ||||||||||||||
Net periodic defined benefit plan (credit) cost other than service cost | (339) | (545) | (512) | ||||||||||||||
Other, net | (126) | 48 | (140) | ||||||||||||||
$ | (886) | $ | 139 | $ | (402) |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
|
Amount | Tax Rate | Amount | Tax Rate | Amount | Tax Rate | |||||||||||||||||||||||||||||
U.S. statutory rate applied to income before taxes
|
$ | 1,846 | 21.0 | % | $ | 2,408 | 21.0 | % | $ | 1,827 | 21.0 | % | |||||||||||||||||||||||
Differential arising from: | |||||||||||||||||||||||||||||||||||
Foreign earnings | (1,242) | (14.1) | (1,020) | (8.9) | (245) | (2.8) | |||||||||||||||||||||||||||||
GILTI and the foreign-derived intangible income deduction
|
364 | 4.1 | 336 | 2.9 | (25) | (0.3) | |||||||||||||||||||||||||||||
R&D tax credit | (110) | (1.3) | (118) | (1.0) | (96) | (1.1) | |||||||||||||||||||||||||||||
Tax settlements | (13) | (0.2) | (403) | (3.5) | (22) | (0.3) | |||||||||||||||||||||||||||||
Acquisition of VelosBio | 559 | 6.3 | — | — | — | — | |||||||||||||||||||||||||||||
Restructuring | 105 | 1.2 | 39 | 0.3 | 56 | 0.6 | |||||||||||||||||||||||||||||
Acquisition of OncoImmune | 97 | 1.1 | — | — | — | — | |||||||||||||||||||||||||||||
State taxes | 67 | 0.8 | (2) | — | 201 | 2.3 | |||||||||||||||||||||||||||||
Acquisition-related costs, including amortization
|
46 | 0.5 | 95 | 0.8 | 267 | 3.1 | |||||||||||||||||||||||||||||
Valuation allowances
|
42 | 0.5 | 113 | 1.0 | 269 | 3.1 | |||||||||||||||||||||||||||||
Acquisition of Peloton | — | — | 209 | 1.8 | — | — | |||||||||||||||||||||||||||||
Tax Cuts and Jobs Act of 2017 | — | — | 117 | 1.0 | 289 | 3.3 | |||||||||||||||||||||||||||||
Other | (52) | (0.5) | (87) | (0.7) | (13) | (0.1) | |||||||||||||||||||||||||||||
$ | 1,709 | 19.4 | % | $ | 1,687 | 14.7 | % | $ | 2,508 | 28.8 | % |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Domestic | $ | (3,492) | $ | 439 | $ | 3,717 | |||||||||||
Foreign | 12,283 | 11,025 | 4,984 | ||||||||||||||
$ | 8,791 | $ | 11,464 | $ | 8,701 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Current provision | |||||||||||||||||
Federal | $ | 962 | $ | 514 | $ | 536 | |||||||||||
Foreign | 1,362 | 1,806 | 2,281 | ||||||||||||||
State | 53 | (77) | 200 | ||||||||||||||
2,377 | 2,243 | 3,017 | |||||||||||||||
Deferred provision | |||||||||||||||||
Federal | (605) | (330) | (402) | ||||||||||||||
Foreign | (40) | (240) | (64) | ||||||||||||||
State | (23) | 14 | (43) | ||||||||||||||
(668) | (556) | (509) | |||||||||||||||
$ | 1,709 | $ | 1,687 | $ | 2,508 |
2020 | 2019 | ||||||||||||||||||||||
|
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Product intangibles and licenses | $ | 141 | $ | 1,250 | $ | 442 | $ | 1,778 | |||||||||||||||
Inventory related | 43 | 335 | 32 | 354 | |||||||||||||||||||
Accelerated depreciation | — | 588 | — | 594 | |||||||||||||||||||
Equity investments | — | 175 | — | — | |||||||||||||||||||
Pensions and other postretirement benefits | 834 | 248 | 785 | 191 | |||||||||||||||||||
Compensation related | 252 | — | 322 | — | |||||||||||||||||||
Unrecognized tax benefits | 117 | — | 109 | — | |||||||||||||||||||
Net operating losses and other tax credit carryforwards | 794 | — | 897 | — | |||||||||||||||||||
Other | 808 | 81 | 764 | 84 | |||||||||||||||||||
Subtotal | 2,989 | 2,677 | 3,351 | 3,001 | |||||||||||||||||||
Valuation allowance | (433) | (1,100) | |||||||||||||||||||||
Total deferred taxes | $ | 2,556 | $ | 2,677 | $ | 2,251 | $ | 3,001 | |||||||||||||||
Net deferred income taxes | $ | 121 | $ | 750 | |||||||||||||||||||
Recognized as: | |||||||||||||||||||||||
Other Assets | $ | 894 | $ | 719 | |||||||||||||||||||
Deferred Income Taxes | $ | 1,015 | $ | 1,470 |
2020 | 2019 | 2018 | |||||||||||||||
Balance January 1 | $ | 1,225 | $ | 1,893 | $ | 1,723 | |||||||||||
Additions related to current year positions | 298 | 199 | 221 | ||||||||||||||
Additions related to prior year positions | 110 | 46 | 142 | ||||||||||||||
Reductions for tax positions of prior years (1)
|
(4) | (454) | (73) | ||||||||||||||
Settlements (1)
|
(70) | (356) | (91) | ||||||||||||||
Lapse of statute of limitations (2)
|
(22) | (103) | (29) | ||||||||||||||
Balance December 31 | $ | 1,537 | $ | 1,225 | $ | 1,893 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Net income attributable to Merck & Co., Inc. | $ | 7,067 | $ | 9,843 | $ | 6,220 | |||||||||||
Average common shares outstanding | 2,530 | 2,565 | 2,664 | ||||||||||||||
Common shares issuable (1)
|
11 | 15 | 15 | ||||||||||||||
Average common shares outstanding assuming dilution | 2,541 | 2,580 | 2,679 | ||||||||||||||
Basic earnings per common share attributable to Merck & Co., Inc. common shareholders
|
$ | 2.79 | $ | 3.84 | $ | 2.34 | |||||||||||
Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders
|
$ | 2.78 | $ | 3.81 | $ | 2.32 |
Derivatives | Investments |
Employee
Benefit Plans |
Cumulative
Translation Adjustment |
Accumulated Other
Comprehensive Income (Loss) |
|||||||||||||||||||||||||
Balance January 1, 2018, net of taxes
|
$ | (108) | $ | (61) | $ | (2,787) | $ | (1,954) | $ | (4,910) | |||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | 228 | (108) | (728) | (84) | (692) | ||||||||||||||||||||||||
Tax | (55) | 1 | 169 | (139) | (24) | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 173 | (107) | (559) | (223) | (716) | ||||||||||||||||||||||||
Reclassification adjustments, pretax | 157 |
(1)
|
97 |
(2)
|
170 |
(3)
|
— | 424 | |||||||||||||||||||||
Tax | (33) | — | (36) | — | (69) | ||||||||||||||||||||||||
Reclassification adjustments, net of taxes | 124 | 97 | 134 | — | 355 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 297 | (10) | (425) | (223) | (361) | ||||||||||||||||||||||||
Adoption of ASU 2018-02 | (23) | 1 | (344) | 100 | (266) | ||||||||||||||||||||||||
Adoption of ASU 2016-01 | — | (8) | — | — | (8) | ||||||||||||||||||||||||
Balance at December 31, 2018, net of taxes | 166 | (78) | (3,556) | (2,077) | (5,545) | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | 86 | 140 | (948) | 112 | (610) | ||||||||||||||||||||||||
Tax | (15) | — | 192 | (16) | 161 | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | 71 | 140 | (756) | 96 | (449) | ||||||||||||||||||||||||
Reclassification adjustments, pretax | (261) |
(1)
|
(44) |
(2)
|
66 |
(3)
|
— | (239) | |||||||||||||||||||||
Tax | 55 | — | (15) | — | 40 | ||||||||||||||||||||||||
Reclassification adjustments, net of taxes | (206) | (44) | 51 | — | (199) | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (135) | 96 | (705) | 96 | (648) | ||||||||||||||||||||||||
Balance at December 31, 2019, net of taxes | 31 | 18 | (4,261) |
(4)
|
(1,981) | (6,193) | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, pretax | (383) | 3 | (599) | 64 | (915) | ||||||||||||||||||||||||
Tax | 84 | — | 111 | 89 | 284 | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments, net of taxes | (299) | 3 | (488) | 153 | (631) | ||||||||||||||||||||||||
Reclassification adjustments, pretax | 2 |
(1)
|
(21) |
(2)
|
272 |
(3)
|
— | 253 | |||||||||||||||||||||
Tax | — | — | (63) | — | (63) | ||||||||||||||||||||||||
Reclassification adjustments, net of taxes | 2 | (21) | 209 | — | 190 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (297) | (18) | (279) | 153 | (441) | ||||||||||||||||||||||||
Balance at December 31, 2020, net of taxes | $ | (266) | $ | — | $ | (4,540) |
(4)
|
$ | (1,828) | $ | (6,634) |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||||||||||||||||
Pharmaceutical: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Oncology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Keytruda | $ | 8,352 | $ | 6,028 | $ | 14,380 | $ | 6,305 | $ | 4,779 | $ | 11,084 | $ | 4,150 | $ | 3,021 | $ | 7,171 | |||||||||||||||||||||||||||||||||||
Alliance revenue - Lynparza (1)
|
417 | 308 | 725 | 269 | 176 | 444 | 127 | 61 | 187 | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Lenvima (1)
|
359 | 220 | 580 | 239 | 165 | 404 | 95 | 54 | 149 | ||||||||||||||||||||||||||||||||||||||||||||
Emend | 18 | 127 | 145 | 183 | 205 | 388 | 312 | 210 | 522 | ||||||||||||||||||||||||||||||||||||||||||||
Vaccines | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gardasil/Gardasil 9
|
1,755 | 2,184 | 3,938 | 1,831 | 1,905 | 3,737 | 1,873 | 1,279 | 3,151 | ||||||||||||||||||||||||||||||||||||||||||||
ProQuad/M-M-R II/Varivax | 1,378 | 500 | 1,878 | 1,683 | 592 | 2,275 | 1,430 | 368 | 1,798 | ||||||||||||||||||||||||||||||||||||||||||||
Pneumovax 23
|
727 | 359 | 1,087 | 679 | 247 | 926 | 627 | 281 | 907 | ||||||||||||||||||||||||||||||||||||||||||||
RotaTeq | 486 | 311 | 797 | 506 | 284 | 791 | 496 | 232 | 728 | ||||||||||||||||||||||||||||||||||||||||||||
Vaqta | 103 | 67 | 170 | 130 | 108 | 238 | 127 | 112 | 239 | ||||||||||||||||||||||||||||||||||||||||||||
Hospital Acute Care | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Bridion | 583 | 615 | 1,198 | 533 | 598 | 1,131 | 386 | 531 | 917 | ||||||||||||||||||||||||||||||||||||||||||||
Noxafil | 42 | 287 | 329 | 282 | 380 | 662 | 353 | 389 | 742 | ||||||||||||||||||||||||||||||||||||||||||||
Prevymis | 119 | 162 | 281 | 84 | 81 | 165 | 46 | 27 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Primaxin | 2 | 248 | 251 | 2 | 271 | 273 | 7 | 258 | 265 | ||||||||||||||||||||||||||||||||||||||||||||
Cancidas | 7 | 207 | 213 | 6 | 242 | 249 | 12 | 314 | 326 | ||||||||||||||||||||||||||||||||||||||||||||
Invanz | 9 | 202 | 211 | 30 | 233 | 263 | 253 | 243 | 496 | ||||||||||||||||||||||||||||||||||||||||||||
Cubicin | 46 | 106 | 152 | 92 | 165 | 257 | 191 | 176 | 367 | ||||||||||||||||||||||||||||||||||||||||||||
Zerbaxa | 74 | 56 | 130 | 63 | 58 | 121 | 42 | 45 | 87 | ||||||||||||||||||||||||||||||||||||||||||||
Immunology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Simponi | — | 838 | 838 | — | 830 | 830 | — | 893 | 893 | ||||||||||||||||||||||||||||||||||||||||||||
Remicade | — | 330 | 330 | — | 411 | 411 | — | 582 | 582 | ||||||||||||||||||||||||||||||||||||||||||||
Neuroscience | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Belsomra | 81 | 247 | 327 | 92 | 214 | 306 | 96 | 164 | 260 | ||||||||||||||||||||||||||||||||||||||||||||
Virology | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Isentress/Isentress HD | 326 | 531 | 857 | 398 | 576 | 975 | 513 | 627 | 1,140 | ||||||||||||||||||||||||||||||||||||||||||||
Zepatier | 60 | 107 | 167 | 118 | 252 | 370 | 8 | 447 | 455 | ||||||||||||||||||||||||||||||||||||||||||||
Cardiovascular | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Zetia | (1) | 483 | 482 | 14 | 575 | 590 | 45 | 813 | 857 | ||||||||||||||||||||||||||||||||||||||||||||
Vytorin | 12 | 171 | 182 | 16 | 269 | 285 | 10 | 487 | 497 | ||||||||||||||||||||||||||||||||||||||||||||
Atozet | — | 453 | 453 | — | 391 | 391 | — | 347 | 347 | ||||||||||||||||||||||||||||||||||||||||||||
Alliance revenue - Adempas (2)
|
259 | 22 | 281 | 194 | 10 | 204 | 134 | 5 | 139 | ||||||||||||||||||||||||||||||||||||||||||||
Adempas | — | 220 | 220 | — | 215 | 215 | — | 190 | 190 | ||||||||||||||||||||||||||||||||||||||||||||
Diabetes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Januvia | 1,470 | 1,836 | 3,306 | 1,724 | 1,758 | 3,482 | 1,969 | 1,718 | 3,686 | ||||||||||||||||||||||||||||||||||||||||||||
Janumet | 477 | 1,494 | 1,971 | 589 | 1,452 | 2,041 | 811 | 1,417 | 2,228 | ||||||||||||||||||||||||||||||||||||||||||||
Women’s Health | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Implanon/Nexplanon | 488 | 192 | 680 | 568 | 219 | 787 | 495 | 208 | 703 | ||||||||||||||||||||||||||||||||||||||||||||
NuvaRing | 110 | 127 | 236 | 742 | 136 | 879 | 722 | 180 | 902 | ||||||||||||||||||||||||||||||||||||||||||||
Diversified Brands | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Singulair | 18 | 444 | 462 | 29 | 669 | 698 | 20 | 688 | 708 | ||||||||||||||||||||||||||||||||||||||||||||
Cozaar/Hyzaar | 21 | 365 | 386 | 24 | 418 | 442 | 23 | 431 | 453 | ||||||||||||||||||||||||||||||||||||||||||||
Arcoxia | — | 258 | 258 | — | 288 | 288 | — | 335 | 335 | ||||||||||||||||||||||||||||||||||||||||||||
Nasonex | 12 | 206 | 218 | 9 | 284 | 293 | 23 | 353 | 376 | ||||||||||||||||||||||||||||||||||||||||||||
Follistim AQ | 84 | 109 | 193 | 103 | 138 | 241 | 115 | 153 | 268 | ||||||||||||||||||||||||||||||||||||||||||||
Other pharmaceutical (3)
|
1,555 | 3,152 | 4,709 | 1,416 | 3,204 | 4,615 | 1,231 | 3,308 | 4,546 | ||||||||||||||||||||||||||||||||||||||||||||
Total Pharmaceutical segment sales | 19,449 | 23,572 | 43,021 | 18,953 | 22,798 | 41,751 | 16,742 | 20,947 | 37,689 | ||||||||||||||||||||||||||||||||||||||||||||
Animal Health: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Livestock | 612 | 2,327 | 2,939 | 582 | 2,201 | 2,784 | 528 | 2,102 | 2,630 | ||||||||||||||||||||||||||||||||||||||||||||
Companion Animals | 872 | 892 | 1,764 | 724 | 885 | 1,609 | 710 | 872 | 1,582 | ||||||||||||||||||||||||||||||||||||||||||||
Total Animal Health segment sales | 1,484 | 3,219 | 4,703 | 1,306 | 3,086 | 4,393 | 1,238 | 2,974 | 4,212 | ||||||||||||||||||||||||||||||||||||||||||||
Other segment sales (4)
|
23 | — | 23 | 174 | 1 | 175 | 248 | 2 | 250 | ||||||||||||||||||||||||||||||||||||||||||||
Total segment sales | 20,956 | 26,791 | 47,747 | 20,433 | 25,885 | 46,319 | 18,228 | 23,923 | 42,151 | ||||||||||||||||||||||||||||||||||||||||||||
Other (5)
|
71 | 176 | 247 | 86 | 436 | 521 | 118 | 26 | 143 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 21,027 | $ | 26,967 | $ | 47,994 | $ | 20,519 | $ | 26,321 | $ | 46,840 | $ | 18,346 | $ | 23,949 | $ | 42,294 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 21,027 | $ | 20,519 | $ | 18,346 | |||||||||||
Europe, Middle East and Africa | 13,600 | 12,707 | 12,213 | ||||||||||||||
China | 3,624 | 3,207 | 2,184 | ||||||||||||||
Japan | 3,376 | 3,583 | 3,212 | ||||||||||||||
Asia Pacific (other than China and Japan) | 2,864 | 2,943 | 2,909 | ||||||||||||||
Latin America | 2,274 | 2,469 | 2,415 | ||||||||||||||
Other | 1,229 | 1,412 | 1,015 | ||||||||||||||
$ | 47,994 | $ | 46,840 | $ | 42,294 |
Years Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Segment profits: | |||||||||||||||||
Pharmaceutical segment | $ | 29,722 | $ | 28,324 | $ | 24,871 | |||||||||||
Animal Health segment | 1,650 | 1,609 | 1,659 | ||||||||||||||
Other segments | 1 | (7) | 103 | ||||||||||||||
Total segment profits | 31,373 | 29,926 | 26,633 | ||||||||||||||
Other profits | 140 | 363 | 6 | ||||||||||||||
Unallocated: | |||||||||||||||||
Interest income | 59 | 274 | 343 | ||||||||||||||
Interest expense | (831) | (893) | (772) | ||||||||||||||
Depreciation and amortization | (1,602) | (1,593) | (1,352) | ||||||||||||||
Research and development | (13,072) | (9,499) | (9,432) | ||||||||||||||
Amortization of purchase accounting adjustments | (1,168) | (1,406) | (2,664) | ||||||||||||||
Restructuring costs | (578) | (638) | (632) | ||||||||||||||
Charge related to the termination of a collaboration with Samsung
|
— | — | (423) | ||||||||||||||
Other unallocated, net | (5,530) | (5,070) | (3,006) | ||||||||||||||
Income Before Taxes | $ | 8,791 | $ | 11,464 | $ | 8,701 |
Pharmaceutical | Animal Health | All Other | Total | ||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Included in segment profits: | |||||||||||||||||||||||
Equity (income) loss from affiliates | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||
Depreciation and amortization | 690 | 164 | 1 | 855 | |||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Included in segment profits: | |||||||||||||||||||||||
Equity (income) loss from affiliates | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Depreciation and amortization | 534 | 109 | 10 | 653 | |||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
Included in segment profits: | |||||||||||||||||||||||
Equity (income) loss from affiliates | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||
Depreciation and amortization | 411 | 82 | 10 | 503 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 10,526 | $ | 8,974 | $ | 8,306 | |||||||||||
Europe, Middle East and Africa | 6,059 | 4,767 | 3,706 | ||||||||||||||
Asia Pacific (other than China and Japan) | 761 | 714 | 684 | ||||||||||||||
Latin America | 252 | 266 | 264 | ||||||||||||||
China | 217 | 174 | 167 | ||||||||||||||
Japan | 166 | 152 | 159 | ||||||||||||||
Other | 5 | 6 | 5 | ||||||||||||||
$ | 17,986 | $ | 15,053 | $ | 13,291 |
|
|||||
|
|||||
Kenneth C. Frazier | Robert M. Davis | ||||
Chairman, President
and Chief Executive Officer |
Executive Vice President, Global Services,
and Chief Financial Officer |
Plan Category |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights (a) |
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
Number of
securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
|||||||||||||||||
Equity compensation plans approved by security holders(1)
|
19,446,307(2)
|
$ | 63.64 | 100,353,680 | ||||||||||||||||
Equity compensation plans not approved by security holders
|
— | — | — | |||||||||||||||||
Total | 19,446,307 | $ | 63.64 | 100,353,680 |
Exhibit
Number
|
Description | |||||||||||||
3.1 | — | |||||||||||||
3.2 | — | |||||||||||||
4.1 | — | Indenture, dated as of April 1, 1991, between Merck Sharp & Dohme Corp. (f/k/a Schering Corporation) and U.S. Bank Trust National Association (as successor to Morgan Guaranty Trust Company of New York), as Trustee (the 1991 Indenture) — Incorporated by reference to Exhibit 4 to MSD’s Registration Statement on Form S-3 (No. 33-39349) | ||||||||||||
4.2 | — | |||||||||||||
4.3 | — | |||||||||||||
4.4 | — | |||||||||||||
4.5 | — | |||||||||||||
4.6 | — | |||||||||||||
4.7 | — |
Exhibit
Number
|
Description | |||||||||||||
4.8 | — | |||||||||||||
4.9 | — | |||||||||||||
4.10 | — | |||||||||||||
4.11 | — | |||||||||||||
4.12 | — | |||||||||||||
*10.1 | — | |||||||||||||
*10.2 | — | |||||||||||||
*10.3 | — | |||||||||||||
*10.4 | — | |||||||||||||
*10.5 | — | |||||||||||||
*10.6 | — | |||||||||||||
*10.7 | — | |||||||||||||
*10.8 | — | |||||||||||||
*10.9 | — |
Exhibit
Number
|
Description | |||||||||||||
*10.10 | — | |||||||||||||
*10.11 | — | |||||||||||||
*10.12 | — | |||||||||||||
*10.13 | — | |||||||||||||
*10.14 | — | |||||||||||||
*10.15 | — | |||||||||||||
*10.16 | — | |||||||||||||
*10.17 | — | |||||||||||||
*10.18 | — | |||||||||||||
10.19 | — | |||||||||||||
10.20 | — | |||||||||||||
10.21 | — | |||||||||||||
10.22 | — | |||||||||||||
*10.23 | — | |||||||||||||
*10.24 | — | |||||||||||||
21 | — | |||||||||||||
23 | — | |||||||||||||
24.1 | — | |||||||||||||
24.2 | — |
31.1 | — | |||||||||||||
31.2 | — | |||||||||||||
32.1 | — | |||||||||||||
32.2 | — | |||||||||||||
Exhibit
Number
|
Description | |||||||||||||
101.INS | — | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||||
101.SCH | — | XBRL Taxonomy Extension Schema Document. | ||||||||||||
101.CAL | — | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||
101.DEF | — | XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||
101.LAB | — | XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||||
101.PRE | — | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Management contract or compensatory plan or arrangement. | ||||
† | Certain portions of the exhibit have been omitted pursuant to a request for confidential treatment. The non-public information has been filed separately with the Securities and Exchange Commission pursuant to rule 24b-2 under the Securities Exchange Act of 1934, as amended. | ||||
Long-term debt instruments under which the total amount of securities authorized does not exceed 10% of Merck & Co., Inc.’s total consolidated assets are not filed as exhibits to this report. Merck & Co., Inc. will furnish a copy of these agreements to the Securities and Exchange Commission on request. |
MERCK & CO., INC. | ||||||||
By: | KENNETH C. FRAZIER | |||||||
(Chairman, President and Chief Executive Officer) | ||||||||
By: | /s/ JENNIFER ZACHARY | |||||||
Jennifer Zachary | ||||||||
(Attorney-in-Fact) |
Signatures | Title | Date | ||||||||||||
KENNETH C. FRAZIER |
Chairman, President and Chief Executive Officer;
Principal Executive Officer; Director
|
February 25, 2021 | ||||||||||||
ROBERT M. DAVIS | Executive Vice President, Global Services, and Chief Financial Officer; Principal Financial Officer | February 25, 2021 | ||||||||||||
RITA A. KARACHUN |
Senior Vice President Finance-Global Controller;
Principal Accounting Officer
|
February 25, 2021 | ||||||||||||
LESLIE A. BRUN | Director | February 25, 2021 | ||||||||||||
THOMAS R. CECH | Director | February 25, 2021 | ||||||||||||
MARY ELLEN COE | Director | February 25, 2021 | ||||||||||||
PAMELA J. CRAIG | Director | February 25, 2021 | ||||||||||||
THOMAS H. GLOCER | Director | February 25, 2021 | ||||||||||||
RISA J. LAVIZZO-MOUREY | Director | February 25, 2021 | ||||||||||||
PAUL B. ROTHMAN | Director | February 25, 2021 | ||||||||||||
PATRICIA F. RUSSO | Director | February 25, 2021 | ||||||||||||
CHRISTINE E. SEIDMAN | Director | February 25, 2021 | ||||||||||||
INGE G. THULIN | Director | February 25, 2021 | ||||||||||||
KATHY J. WARDEN | Director | February 25, 2021 | ||||||||||||
PETER C. WENDELL | Director | February 25, 2021 |
By: | /S/ JENNIFER ZACHARY | |||||||
Jennifer Zachary | ||||||||
(Attorney-in-Fact) |
Name
|
Country or State
of Incorporation
|
||||
7728026 Canada Inc.
|
Canada
|
||||
Abmaxis Inc.
|
Delaware
|
||||
Afferent Pharmaceuticals, Inc.
|
Delaware
|
||||
Agrident GmbH
|
Germany
|
||||
Agro Verhen B.V.
|
Netherlands
|
||||
Aleis Pty Ltd
|
Australia
|
||||
Allflex Argentina S.A.
|
Argentina
|
||||
Allflex Australia Pty. Ltd.
|
Australia
|
||||
Allflex Avrasya Hayvan Kimlik Sistemleri Sanayi Ve Ticaret Limited Sirketi
|
Turkey
|
||||
Allflex dan-mark ApS
|
Denmark
|
||||
Allflex Europe S.A.S.
|
France
|
||||
Allflex Group Germany GmbH
|
Germany
|
||||
Allflex India Private Limited
|
India
|
||||
Allflex International do Brasil Ltda
|
Brazil
|
||||
Allflex Maroc S.A.R.L.
|
Morocco
|
||||
Allflex New Zealand Limited
|
New Zealand
|
||||
Allflex Polska Spolka z ograniczona odpowiedzialnoscia
|
Poland
|
||||
Allflex SCR Vostok
|
Belarus
|
||||
Allflex Services S.A.R.L.
|
France
|
||||
Allflex UK Group Limited
|
United Kingdom
|
||||
Allflex USA, Inc.
|
Delaware
|
||||
Alta Plastic Muhendislik Sanayi Ve Ticaret Limited Sirketi
|
Turkey
|
||||
Animal ID Australia Pty Ltd
|
Australia
|
||||
Antelliq Corporation
|
Delaware
|
||||
Antelliq Finance, Inc.
|
Delaware
|
||||
Antelliq Holdings France S.A.S
|
France
|
||||
Antelliq Holdings, Inc.
|
Delaware
|
||||
Antelliq Management, Inc.
|
Delaware
|
||||
Antimicrobial Stewardship LLC
|
Delaware
|
||||
ArQule, Inc.
|
Delaware
|
||||
AVL Holdings Limited
|
United Kingdom
|
Beijing Allflex Plastic Products Co. Ltd
|
China
|
||||
Beijing Protection Science and Technology Co., Ltd.
|
People’s Republic of China
|
||||
Biomark, Inc.
|
Idaho
|
||||
BRC Ltd.
|
Bermuda
|
||||
Burgwedel Biotech GmbH
|
Germany
|
||||
Calporta Therapeutics, Inc.
|
Delaware
|
||||
Cambridge Resonant Technologies Ltd
|
United Kingdom
|
||||
Canji, Inc.
|
Delaware
|
||||
cCam Biotherapeutics Ltd.
|
Israel
|
||||
Cherokee Pharmaceuticals LLC
|
Delaware
|
||||
Chevillot S.A.S.
|
France
|
||||
Continuum Professional Services Limited
|
United Kingdom
|
||||
Controladora MSD Mexicana Sociedad de Responsabilidad Limitada de Capital Variable
|
Mexico
|
||||
Cooper Veterinary Products (Proprietary) Limited
|
South Africa
|
||||
Corporation Allflex, Inc.
|
Canada
|
||||
Cosmas B.V.
|
Netherlands
|
||||
Cubist (UK) Ltd
|
United Kingdom
|
||||
Cubist Pharmaceuticals (UK) Ltd.
|
United Kingdom
|
||||
Cubist Pharmaceuticals LLC
|
Delaware
|
||||
Dashtag
|
United Kingdom
|
||||
Desarrollos Farmaceuticos Y Cosmeticos, S.A.
|
Spain
|
||||
Destron Fearing Corporation
|
Delaware
|
||||
Dialstat Trading 91 Pty Ltd T/A Allflex SA
|
South Africa
|
||||
Dieckmann Arzneimittel GmbH
|
Germany
|
||||
Digital Angel S.A.
|
Digital Angel S.A.
|
||||
Diosynth France S.A.S.
|
France
|
||||
Diosynth Holding B.V.
|
Netherlands
|
||||
Diosynth Produtos Farmo-quimicos Ltda.
|
Brazil
|
||||
Drovers ID Pty Ltd
|
Australia
|
||||
DSD Holding A/S
|
Denmark
|
||||
Elastec S.R.L
|
Argentina
|
||||
Essex Pharmaceuticals, Inc.
|
Philippines
|
||||
Essexfarm, S.A.
|
Ecuador
|
||||
Farmacox - Companhia Farmaceutica, Lda
|
Portugal
|
||||
Farmasix-Produtos Farmaceuticos, Lda
|
Portugal
|
||||
Financiere MSD
|
France
|
||||
Fontelabor-Produtos Farmaceuticos, Lda.
|
Portugal
|
Frosst Laboratories, Inc.
|
Delaware
|
||||
Frosst Portuguesa - Produtos Farmaceuticos, Lda.
|
Portugal
|
||||
Fulford (India) Limited1
|
India
|
||||
GlycoFi, Inc.
|
Delaware
|
||||
GT Acquisition Sub, Inc.
|
Minnesota
|
||||
GTS FI B.V.
|
Netherlands | ||||
Hangzhou MSD Pharmaceutical Co., Ltd.1
|
China
|
||||
Harrisvaccines, Inc.
|
Iowa
|
||||
Hawk and Falcon L.L.C.
|
Delaware
|
||||
Healthcare Services and Solutions, LLC
|
Delaware
|
||||
Heptafarma Companhia Farmaceutica, Lda
|
Portugal
|
||||
Hydrochemie GmbH
|
Germany
|
||||
Idenix GmbH
|
Switzerland
|
||||
Idenix SARL
|
France
|
||||
IdentiGEN Canada Ltd.
|
Canada
|
||||
IdentiGEN Czech s.r.o.
|
Czech Republic
|
||||
IdentiGEN Deutschland GmbH
|
Germany
|
||||
IdentiGEN Limited
|
Ireland
|
||||
IdentiGEN North America Inc.
|
Delaware
|
||||
IdentiGEN Switzerland AG
|
Switzerland
|
||||
Immune Design B.V.
|
Netherlands
|
||||
Immune Design Corp.
|
Delaware
|
||||
Insight Acquisition Holdings Limited
|
Ireland
|
||||
International Indemnity Ltd.
|
Bermuda
|
||||
Intervet (Ireland) Limited
|
Ireland
|
||||
Intervet (Israel) Ltd.
|
Israel
|
||||
Intervet (M) Sdn. Bhd.
|
Malaysia
|
||||
Intervet (Proprietary) Limited
|
South Africa
|
||||
Intervet (Thailand) Ltd.
|
Thailand
|
||||
Intervet AB
|
Sweden
|
||||
Intervet Agencies B.V.
|
Netherlands
|
||||
Intervet Animal Health Taiwan Limited
|
Republic of China
|
||||
Intervet Argentina S.A.
|
Argentina
|
||||
Intervet Australia Pty Limited
|
Australia
|
||||
Intervet Canada Corp.
|
Canada
|
||||
Intervet Central America S. de R.L.
|
Panama
|
||||
Intervet Deutschland GmbH
|
Germany
|
||||
Intervet Ecuador S.A.
|
Ecuador
|
Intervet Egypt for Animal Health SAE
|
Egypt
|
||||
Intervet GesmbH
|
Austria
|
||||
Intervet Hellas A.E.
|
Greece
|
||||
Intervet Holding B.V.
|
Netherlands
|
||||
Intervet Holdings France SAS
|
France
|
||||
Intervet Hungaria Értékesítő Kft
|
Hungary
|
||||
Intervet Inc.
|
Delaware
|
||||
Intervet India Pvt Limited
|
India
|
||||
Intervet International B.V.
|
Netherlands
|
||||
Intervet International GmbH
|
Germany
|
||||
Intervet International Sarl
|
France
|
||||
Intervet LLC
|
Russian Federation
|
||||
Intervet Maroc S.A.
|
Morocco
|
||||
Intervet Mexico S.A. de C.V.
|
Mexico
|
||||
Intervet Middle East Limited
|
Cyprus
|
||||
Intervet Nederland B.V.
|
Netherlands
|
||||
Intervet Philippines, Inc.
|
Philippines
|
||||
Intervet Productions S.A.
|
France
|
||||
Intervet Productions S.r.l.
|
Italy
|
||||
Intervet Romania SRL
|
Romania
|
||||
Intervet S.A.
|
Peru
|
||||
Intervet SAS
|
France
|
||||
Intervet Schering-Plough Animal Health Pty. Ltd.
|
Australia
|
||||
Intervet South Africa (Proprietary) Limited
|
South Africa
|
||||
Intervet Sp. z.o.o.
|
Poland
|
||||
Intervet UK Production Limited
|
United Kingdom
|
||||
Intervet Venezolana S.A.
|
Venezuela
|
||||
Intervet Veterinaria Chile Ltda
|
Chile
|
||||
Intervet Veteriner Ilaclari Pazarlama ve Ticaret Ltd. Sirketi
|
Turkey
|
||||
Intervet, s.r.o.
|
Czech Republic
|
||||
Interveterinaria SA de CV
|
Mexico
|
||||
IOmet Pharma Limited
|
United Kingdom
|
||||
Laboratoires Merck Sharp & Dohme-Chibret
|
France
|
||||
Laboratorios Abello, S.A.
|
Spain
|
||||
Laboratorios Chibret, S.A.
|
Spain
|
||||
Laboratorios Frosst, S.A.
|
Spain
|
||||
Laboratorios Quimico-Farmaceuticos Chibret, Lda
|
Portugal
|
||||
Lemifar S. A.
|
Uruguay
|
Maple Leaf Holdings GmbH
|
Switzerland
|
||||
Maya Tibbi Urunler Ticaret Limited Sirketi
|
Turkey
|
||||
MCM Vaccine B.V.1
|
Netherlands
|
||||
Med-Nim (Proprietary) Limited
|
South Africa
|
||||
Merck and Company, Incorporated
|
Delaware
|
||||
Merck Canada Inc.
|
Canada
|
||||
Merck Capital Ventures, LLC1
|
Delaware
|
||||
Merck Frosst Canada & Co.
|
Canada
|
||||
Merck Frosst Company
|
Canada
|
||||
Merck Global Health Innovation Fund, LLC
|
Delaware
|
||||
Merck Global Health Innovation, Private Equity, LLC
|
Delaware
|
||||
Merck HDAC Research, LLC
|
Delaware
|
||||
Merck Holdings II Corp.
|
Delaware
|
||||
Merck Holdings III Corp.
|
Delaware
|
||||
Merck Holdings IV Corp.
|
Delaware
|
||||
Merck Holdings LLC
|
Delaware
|
||||
Merck International Holdings Corp.
|
Delaware
|
||||
Merck Lumira Biosciences Fund L.P.1
|
Canada
|
||||
Merck Registry Holdings, Inc.
|
New Jersey
|
||||
Merck Research Investments LLC
|
Delaware
|
||||
Merck Research Laboratories Massachusetts, LLC
|
Delaware
|
||||
Merck Sharp & Dohme (Argentina) LLC
|
Delaware
|
||||
Merck Sharp & Dohme (Asia) Limited
|
Hong Kong
|
||||
Merck Sharp & Dohme (Australia) Pty. Limited
|
Australia
|
||||
Merck Sharp & Dohme (Chile) Ltda.
|
Chile
|
||||
Merck Sharp & Dohme (China) Limited
|
Hong Kong
|
||||
Merck Sharp & Dohme (Enterprises) B.V.
|
Netherlands
|
||||
Merck Sharp & Dohme (Europe) Inc.
|
Delaware
|
||||
Merck Sharp & Dohme (Holdings) Pty Ltd
|
Australia
|
||||
Merck Sharp & Dohme (I.A.) LLC
|
Delaware
|
||||
Merck Sharp & Dohme (International) Limited
|
Bermuda
|
||||
Merck Sharp & Dohme (Israel - 1996) Company Ltd.
|
Israel
|
||||
Merck Sharp & Dohme (Malaysia) SDN. BHD.
|
Malaysia
|
||||
Merck Sharp & Dohme (New Zealand) Limited
|
New Zealand
|
||||
Merck Sharp & Dohme (Sweden) A.B.
|
Sweden
|
||||
Merck Sharp & Dohme (Switzerland) GmbH
|
Switzerland
|
||||
Merck Sharp & Dohme (UK) Limited
|
United Kingdom
|
||||
Merck Sharp & Dohme Animal Health, S.L.
|
Spain
|
Merck Sharp & Dohme Asia Pacific Services Pte. Ltd.
|
Singapore
|
||||
Merck Sharp & Dohme B.V.
|
Netherlands
|
||||
Merck Sharp & Dohme BH d.o.o.
|
Bosnia
|
||||
Merck Sharp & Dohme Bulgaria EOOD
|
Bulgaria
|
||||
Merck Sharp & Dohme Colombia S.A.S.
|
Colombia
|
||||
Merck Sharp & Dohme Comercializadora, S. de R.L. de C.V.
|
Mexico
|
||||
Merck Sharp & Dohme Corp.
|
New Jersey
|
||||
Merck Sharp & Dohme Cyprus Limited
|
Cyprus
|
||||
Merck Sharp & Dohme d.o.o.
|
Croatia
|
||||
Merck Sharp & Dohme d.o.o. Belgrade
|
Serbia
|
||||
Merck Sharp & Dohme de Espana SAU
|
Spain
|
||||
Merck Sharp & Dohme Farmaceutica Ltda.
|
Brazil
|
||||
Merck Sharp & Dohme Finance Europe Limited
|
United Kingdom
|
||||
Merck Sharp & Dohme Gesellschaft m.b.H.
|
Austria
|
||||
Merck Sharp & Dohme IDEA GmbH
|
Switzerland
|
||||
Merck Sharp & Dohme inovativna zdravila d.o.o.
|
Slovenia
|
||||
Merck Sharp & Dohme International Services B.V.
|
Netherlands
|
||||
Merck Sharp & Dohme Latvija
|
Latvia
|
||||
Merck Sharp & Dohme Limitada
|
Bolivia
|
||||
Merck Sharp & Dohme LLC
|
New Jersey
|
||||
Merck Sharp & Dohme Manufacturing Unlimited Company
|
Ireland
|
||||
Merck Sharp & Dohme OU
|
Estonia
|
||||
Merck Sharp & Dohme Peru SRL
|
Peru
|
||||
Merck Sharp & Dohme Pharmaceutical Industrial and Commercial Societe Anonyme
|
Greece
|
||||
Merck Sharp & Dohme Research GmbH
|
Switzerland
|
||||
Merck Sharp & Dohme Romania SRL
|
Romania
|
||||
Merck Sharp & Dohme S.A.
|
Morocco
|
||||
Merck Sharp & Dohme s.r.o.
|
Czech Republic
|
||||
Merck Sharp & Dohme Salud Animal Columbia S.A.S.
|
Colombia
|
||||
Merck Sharp & Dohme Saude Animal Ltda.
|
Brazil
|
||||
Merck Sharp & Dohme Singapore Trading Pte. Ltd.
|
Singapore
|
||||
Merck Sharp & Dohme Tunisie SARL
|
Tunisia
|
||||
Merck Sharp & Dohme, Limitada
|
Portugal
|
||||
Merck Sharp & Dohme, S. de R.L. de C.V.
|
Mexico
|
||||
Merck Sharp & Dohme, s.r.o.
|
Slovakia
|
||||
Merck Sharp Dohme Ilaclari Limited Sirketi
|
Turkey
|
||||
Merck Teknika LLC
|
Delaware
|
||||
Merko Acquisition S.A.
|
Belgium
|
Merko B.V.
|
Netherlands
|
||||
Merko Dalton B.V.
|
Netherlands
|
||||
Merko N.V.
|
Belgium
|
||||
ML Holdings (Canada) Inc.
|
Canada
|
||||
MRL San Francisco, LLC
|
Delaware
|
||||
MRL Ventures Fund LLC
|
Delaware
|
||||
MSD (I.A.) B.V.
|
Netherlands
|
||||
MSD (L-SP) Unterstützungskasse GmbH
|
Germany
|
||||
MSD (Ningbo) Animal Health Technology Co., Ltd.
|
China
|
||||
MSD (Nippon Holdings) B.V.
|
Netherlands
|
||||
MSD (Norge) AS
|
Norway
|
||||
MSD (Proprietary) Limited
|
South Africa
|
||||
MSD (Shanghai) Pharmaceuticals Consultancy Co., Ltd.
|
China
|
||||
MSD (Thailand) Ltd.
|
Thailand
|
||||
MSD AH Limited
|
United Kingdom
|
||||
MSD Animal Health (Phils.), Inc
|
Philippines
|
||||
MSD Animal Health (Shanghai) Trading Co., Ltd.
|
China
|
||||
MSD Animal Health A/S
|
Denmark
|
||||
MSD Animal Health B.V.
|
Belgium
|
||||
MSD Animal Health Danube Biotech GmbH
|
Austria
|
||||
MSD Animal Health FZ-LLC
|
United Arab Emirates
|
||||
MSD Animal Health GmbH
|
Switzerland
|
||||
MSD Animal Health Innovation AS
|
Norway
|
||||
MSD Animal Health Innovation GmbH
|
Germany
|
||||
MSD Animal Health Innovation Pte. Ltd.
|
Singapore
|
||||
MSD Animal Health Innovation SAS
|
France
|
||||
MSD Animal Health K.K.
|
Japan
|
||||
MSD Animal Health Korea Ltd.
|
Korea, Republic of
|
||||
MSD Animal Health Norge AS
|
Norway
|
||||
MSD Animal Health Oy
|
Finland
|
||||
MSD Animal Health Pension Trustee Limited
|
United Kingdom
|
||||
MSD Animal Health S.r.l.
|
Italy
|
||||
MSD Animal Health UK Ltd.
|
United Kingdom
|
||||
MSD Animal Health Vietnam Co. Limited
|
Viet Nam
|
||||
MSD Animal Health, Lda.
|
Portugal
|
||||
MSD Argentina Holdings B.V.
|
Netherlands
|
||||
MSD Argentina SRL
|
Argentina
|
||||
MSD Asia Holdings Pte. Ltd.
|
Singapore
|
MSD Belgium BV - SRL
|
Belgium
|
||||
MSD Biotech B.V.
|
Netherlands
|
||||
MSD Brazil Investments B.V.
|
Netherlands
|
||||
MSD Central America Services S. de R.L.
|
Panama
|
||||
MSD China (Investments) B.V.
|
Netherlands
|
||||
MSD China B.V.
|
Netherlands
|
||||
MSD China Holding Co., Ltd.
|
China
|
||||
MSD Cubist Holdings Unlimited Company
|
Ireland
|
||||
MSD Czech Republic s.r.o.
|
Czech Republic
|
||||
MSD Danmark ApS
|
Denmark
|
||||
MSD Egypt LLC
|
Egypt
|
||||
MSD EIC Unlimited Company
|
Ireland
|
||||
MSD Eurofinance
|
Bermuda
|
||||
MSD Farmaceutica C.A.
|
Venezuela
|
||||
MSD FI BV
|
Netherlands
|
||||
MSD Finance 2 LLC
|
Delaware
|
||||
MSD Finance B.V.
|
Netherlands
|
||||
MSD Finance Company
|
Bermuda
|
||||
MSD Finance Holdings Unlimited Company
|
Ireland
|
||||
MSD Finland Oy
|
Finland
|
||||
MSD France
|
France
|
||||
MSD Global Research GmbH
|
Switzerland
|
||||
MSD HH Vietnam Ltd
|
Vietnam
|
||||
MSD Holdings (Ireland) Unlimited Company
|
Ireland
|
||||
MSD Holdings 2 G.K.
|
Japan
|
||||
MSD Holdings G.K.
|
Japan
|
||||
MSD Human Health Holding B.V.
|
Netherlands
|
||||
MSD Human Health Holding II B.V.
|
Netherlands
|
||||
MSD IDEA Pharmaceuticals Nigeria Limited
|
Nigeria
|
||||
MSD IDEA Tunisie SARL
|
Tunisia
|
||||
MSD Idenix Holdings Unlimited Company
|
Ireland
|
||||
MSD Innovation & Development GmbH
|
Switzerland
|
||||
MSD International Business GmbH
|
Switzerland
|
||||
MSD International Finance B.V.
|
Netherlands
|
||||
MSD International Finance LLC
|
Delaware
|
||||
MSD International GmbH
|
Switzerland
|
||||
MSD International Holdings 2 B.V.
|
Netherlands
|
||||
MSD International Investment Holdings Unlimited Company
|
Ireland
|
MSD International Manufacturing GmbH
|
Switzerland
|
||||
MSD Investment Holdings (Ireland) Unlimited Company
|
Ireland
|
||||
MSD Investments (Holdings) GmbH
|
Switzerland
|
||||
MSD Italia s.r.l.
|
Italy
|
||||
MSD Japan Holdings B.V.
|
Netherlands
|
||||
MSD Japan Holdings GK
|
Japan
|
||||
MSD K.K.
|
Japan
|
||||
MSD Korea Co., Ltd.
|
Korea
|
||||
MSD Laboratories India LLC
|
Delaware
|
||||
MSD Latin America Services S. de R.L.
|
Panama
|
||||
MSD Latin America Services S. de R.L. de C.V.
|
Mexico
|
||||
MSD Limited
|
United Kingdom
|
||||
MSD Luxembourg S.a.r.l.
|
Luxembourg
|
||||
MSD Merck Sharp & Dohme AG
|
Switzerland
|
||||
MSD NL 4 B.V.
|
Netherlands
|
||||
MSD Overseas Manufacturing Co (Ireland) Unlimited Company
|
Ireland
|
||||
MSD Panama International Services S. de R.L.
|
Panama
|
||||
MSD Participations B.V.
|
Netherlands
|
||||
MSD Pharma (Singapore) Pte. Ltd.
|
Singapore
|
||||
MSD Pharma GmbH
|
Germany
|
||||
MSD Pharma Hungary Korlatolt Felelossegu Tarsasag
|
Hungary
|
||||
MSD Pharmaceuticals Holdings Unlimited Company
|
Ireland
|
||||
MSD Pharmaceuticals Investments 1 Unlimited Company
|
Ireland
|
||||
MSD Pharmaceuticals Investments 3 Unlimited Company
|
Ireland
|
||||
MSD Pharmaceuticals Ireland Unlimited Company
|
Ireland
|
||||
MSD Pharmaceuticals LLC
|
Russian Federation
|
||||
MSD Pharmaceuticals Private Limited
|
India
|
||||
MSD Polska Dystrybucja Sp. z.o.o.
|
Poland
|
||||
MSD Polska Sp.z.o.o.
|
Poland
|
||||
MSD R&D (China) Co., Ltd.
|
China
|
||||
MSD R&D Innovation Centre Limited
|
United Kingdom
|
||||
MSD RDC Costa Rica Sociedad de Responsabilidad Limitada
|
Cost Rica
|
||||
MSD Regional Business Support Center GmbH
|
Germany
|
||||
MSD Registry Holdings, Inc.
|
New Jersey
|
||||
MSD Shared Business Services EMEA Limited
|
Ireland
|
||||
MSD Sharp & Dohme Gesellschaft mit beschränkter Haftung
|
Germany
|
||||
MSD Switzerland Investments 1 Unlimited Company
|
Ireland
|
||||
MSD Switzerland Investments 4 Unlimited Company
|
Ireland
|
MSD Switzerland Investments 5 Unlimited Company
|
Ireland
|
||||
MSD Ukraine Limited Liability Company
|
Ukraine
|
||||
MSD Unterstutzungskasse GmbH
|
Germany
|
||||
MSD Vaccines Limited
|
United Kingdom
|
||||
MSD Vaccins
|
France
|
||||
MSD Vaccins Holdings
|
France
|
||||
MSD Venezuela Holding GmbH
|
Switzerland
|
||||
MSD Ventures (Ireland) Unlimited Company
|
Ireland
|
||||
MSD Verwaltungs GmbH
|
Germany
|
||||
MSD Vietnam Company Limited
|
Vietnam
|
||||
MSD Vietnam Holdings B.V.
|
Netherlands
|
||||
MSD Vostok B.V.
|
Netherlands
|
||||
MSDIG Holdings Limited
|
Ireland
|
||||
MSDRG Holdings Unlimited Company
|
Switzerland
|
||||
MSDRG LLC
|
Delaware
|
||||
MSP Singapore - Sub, LLC
|
Delaware
|
||||
MSP Singapore Company, LLC
|
Delaware
|
||||
MSP Vaccine Company1
|
Pennsylvania
|
||||
Multilan AG
|
Switzerland
|
||||
N.V. Organon
|
Netherlands
|
||||
Nihon MSD G.K.
|
Japan
|
||||
Nourifarma - Produtos Quimicos e Farmaceuticos, Sociedade Uniperssoal, Lda
|
Portugal
|
||||
O.PI.VI S.R.L.
|
Italy
|
||||
OBS Holdings B.V.
|
Netherlands
|
||||
OBS Human Health Holding B.V.
|
Netherlands
|
||||
OBS International 9 B.V.
|
Netherlands
|
||||
OBS Mexico Holdings B.V.
|
Netherlands
|
||||
Oncoethix GmbH
|
Switzerland
|
||||
OncoImmune, Inc.
|
Delaware
|
||||
Optimer Pharmaceuticals LLC
|
Delaware
|
||||
Organon – Ecuador S.A.
|
Ecuador
|
||||
Organon & Co.
|
Delaware
|
||||
Organon (I.A.) B.V.
|
Bulgaria
|
||||
Organon (India) Private Limited
|
India
|
||||
Organon (Ireland) Ltd
|
Ireland
|
||||
Organon (Philippines) Incorporated
|
Philippines
|
||||
Organon (Shanghai) Pharmaceutical Technology Co., Ltd.
|
Peoples Republic of China
|
||||
Organon (Thailand) Ltd.
|
Thailand
|
Organon Agencies B.V.
|
Netherlands
|
||||
Organon Argentina Holdings B.V.
|
Argentina
|
||||
Organon Argentina S.R.L.
|
Argentina
|
||||
Organon Asia Holdings B.V.
|
Netherlands
|
||||
Organon Asia Pacific Services Pte. Ltd.
|
Singapore
|
||||
Organon Austria GmbH
|
Austria
|
||||
Organon Belgium BV
|
Belgium
|
||||
Organon BH d.o.o.
|
Bosnia and Herzegovina
|
||||
Organon BioSciences International B.V.
|
Netherlands
|
||||
Organon BioSciences Peru S.R.L.
|
Peru
|
||||
Organon BioSciences S.R.L.
|
Romania
|
||||
Organon BioSciences Ventures B.V.
|
Netherlands
|
||||
Organon Canada Holdings BV
|
Netherlands
|
||||
Organon Canada Holdings LLC
|
Delaware
|
||||
Organon Canada Inc.
|
Canada
|
||||
Organon Central East GmbH
|
Switzerland
|
||||
Organon Chile SPA
|
Chile
|
||||
Organon China B.V.
|
Netherlands
|
||||
Organon Colombia S.A.S.
|
Colombia
|
||||
Organon Comercializadora, S. de R.L. de C.V.
|
Mexico
|
||||
Organon Czech Republic s.r.o.
|
Czech Republic
|
||||
Organon Denmark ApS
|
Denmark
|
||||
Organon Dominicana S.A.
|
Dominican Republic
|
||||
Organon Egypt Ltd
|
Egypt
|
||||
Organon Finance 1 LLC
|
Delaware
|
||||
Organon Finance Inc.
|
Delaware
|
||||
Organon Finland Oy
|
Finland
|
||||
Organon France
|
France
|
||||
Organon Global Inc.
|
Delaware
|
||||
Organon GmbH
|
Switzerland
|
||||
Organon Healthcare GmbH
|
Germany
|
||||
Organon Holding I B.V.
|
Netherlands
|
||||
Organon Holdings 9 B.V.
|
Netherlands
|
||||
Organon Hong Kong Limited
|
Hong Kong
|
||||
Organon International GmbH
|
Switzerland
|
||||
Organon International Holdings 9 B.V.
|
Netherlands
|
||||
Organon International Holdings B.V.
|
Netherlands
|
||||
Organon International Services GmbH
|
Switzerland
|
Organon Ireland Holdings B.V.
|
Netherlands
|
||||
Organon Italia S.r.l.
|
Italy
|
||||
Organon Japan Holdings B.V.
|
Netherlands
|
||||
Organon Japan Holdings G.K.
|
Japan
|
||||
Organon K.K.
|
Japan
|
||||
Organon Korea Co. Ltd.
|
Korea (the Republic of)
|
||||
Organon KSA GmbH
|
Switzerland
|
||||
Organon Laboratories Ltd
|
United Kingdom
|
||||
Organon Latin America S.A.
|
Uruguay
|
||||
Organon Latin America Services S. de R.L.
|
Panama
|
||||
Organon Limited Liability Company
|
Russian Federation
|
||||
Organon LLC
|
Delaware
|
||||
Organon Malaysia Sdn. Bhd.
|
Malaysia
|
||||
Organon Maroc S.A.R.L.
|
Morocco
|
||||
Organon Middle East S.A.L.
|
Lebanon
|
||||
Organon New Zealand Limited
|
New Zealand
|
||||
Organon Norway AS
|
Norway
|
||||
Organon Participations B.V.
|
Netherlands
|
||||
Organon Pharma (Ireland) Limited
|
Ireland
|
||||
Organon Pharma (UK) Limited
|
United Kingdom
|
||||
Organon Pharma B.V.
|
Netherlands
|
||||
Organon Pharma Costa Rica S.R.L.
|
Costa Rica
|
||||
Organon Pharma d.o.o.
|
Croatia
|
||||
Organon Pharma d.o.o. Beograde
|
Serbia
|
||||
Organon Pharma FZ-LLC
|
United Arab Emirates
|
||||
Organon Pharma Holdings LLC
|
Delaware
|
||||
Organon Pharma Israel Ltd.
|
Israel
|
||||
Organon Pharma Pty Ltd
|
Australia
|
||||
Organon Pharma S. de R.L.
|
Panama
|
||||
Organon Pharmaceutical Egypt LLC
|
Egypt
|
||||
Organon Polska Sp. zo.o.
|
Poland
|
||||
Organon Portugal Sociedade Unipessoal Lda
|
Portugal
|
||||
Organon Puerto Rico LLC
|
Puerto Rico
|
||||
Organon Salud, S.L.
|
Spain
|
||||
Organon Singapore Pte. Ltd.
|
Singapore
|
||||
Organon Slovakia s.r.o.
|
Slovakia
|
||||
Organon South Africa (Pty) Ltd
|
South Africa
|
||||
Organon Sweden AB
|
Sweden
|
Organon Trade LLC
|
Delaware
|
||||
Organon Turkey Ilaclari Limited Sirketi
|
Turkey
|
||||
Organon Ukraine Limited Liability Company
|
Ukraine
|
||||
Organon USA LLC
|
New Jersey
|
||||
OS ID AS
|
Norway
|
||||
OS ID Hellas M.I.K.E
|
Greece
|
||||
P.T. Merck Sharp & Dohme Indonesia
|
Indonesia
|
||||
Parlanca Limited
|
Ireland
|
||||
Peloton Therapeutics, Inc.
|
Delaware
|
||||
Pentair Iceland Holdings ehf.
|
Iceland
|
||||
Pentair Chile SpA
|
Chile
|
||||
Peocon ehf.
|
Iceland
|
||||
Pixobot, Inc.
|
Delaware
|
||||
Polnet ID Spolka z ograniczona odpowiedzialnoscia
|
Poland
|
||||
Productos Famaceuticos Organon, S. de R.L. de C.V.
|
Mexico
|
||||
Prondil Sociedad Anónima
|
Uruguay
|
||||
PT Intervet Indonesia
|
Indonesia
|
||||
PT Merck Sharp Dohme Pharma Tbk 1
|
Indonesia
|
||||
Putexin Investments Limited
|
New Zealand
|
||||
Rigontec GmbH
|
Germany
|
||||
Rigontec, Inc.
|
Delaware
|
||||
Rosetta Biosoftware UK Limited
|
United Kingdom
|
||||
Rosetta Inpharmatics LLC
|
Delaware
|
||||
S.C. Allflex Romania S.R.L.
|
Romania
|
||||
S.C.R. (Engineers) Limited
|
Israel
|
||||
Schering-Plough
|
France
|
||||
Schering-Plough (India) Private Limited
|
India
|
||||
Schering-Plough (Ireland) Unlimited Company
|
Ireland
|
||||
Schering-Plough Animal Health Limited
|
New Zealand
|
||||
Schering-Plough Bermuda Ltd.
|
Bermuda
|
||||
Schering-Plough Canada Inc.
|
Canada
|
||||
Schering-Plough Corporation
|
Philippines
|
||||
Schering-Plough Corporation, U.S.A.
|
Delaware
|
||||
Schering-Plough del Peru S.A.
|
Peru
|
||||
Schering-Plough Holdings Limited
|
United Kingdom
|
||||
Schering-Plough Indústria Farmacêutica Ltda.
|
Brazil
|
||||
Schering-Plough Labo NV
|
Belgium
|
||||
Schering-Plough Limited
|
United Kingdom
|
Schering-Plough S.A.
|
Panama
|
||||
Schering-Plough S.A.
|
Paraguay
|
||||
Schering-Plough S.A.
|
Spain
|
||||
Schering-Plough S.A.
|
Uruguay
|
||||
Schering-Plough S.A. de C.V.
|
Mexico
|
||||
Schering-Plough Sante Animale
|
France
|
||||
SCR Allflex Management, Ltd
|
Israel
|
||||
SCR Dairy, Inc.
|
Delaware
|
||||
SCR Europe S.R.L.
|
Italy
|
||||
SCR Monitoring Mexico, S. de R.L. de C.V.
|
Mexico
|
||||
Sentipharm AG
|
Switzerland
|
||||
Servicios Organon S. de R.L. de C.V.
|
Brazil
|
||||
Servicios Veterniarios Servet, Sociedad Anónima
|
Costa Rica
|
||||
Shanghai MSD Pharmaceutical Trading Co., Ltd.
|
China
|
||||
Sistemas de Identificacao Animal Ltda
|
Brazil
|
||||
SmartCells, Inc.
|
Delaware
|
||||
SOL Limited
|
Bermuda
|
||||
S-P Ril Ltd.
|
United Kingdom
|
||||
S-P Veterinary Holdings Limited
|
United Kingdom
|
||||
S-P Veterinary Limited
|
United Kingdom
|
||||
Stallmastaren AB
|
Sweden
|
||||
SureFlap (NZ) Limited
|
New Zealand
|
||||
SureFlap Limited
|
United Kingdom
|
||||
SureFlap LLC
|
Florida
|
||||
Tag ID Investments, Inc.
|
Delaware
|
||||
Theriak B.V.
|
Netherlands]
|
||||
Tilos Therapeutics, Inc.
|
Delaware
|
||||
Trius Therapeutics LLC
|
Delaware
|
||||
UAB Merck Sharp & Dohme
|
Lithuania
|
||||
Undra, S.A. de C.V.
|
Mexico
|
||||
Vaki A/S
|
Norway
|
||||
Vaki Aquaculture Systems ehf.
|
Iceland
|
||||
Vaki Chile Limitada
|
Chile
|
||||
Vaki Scotland Ltd
|
United Kingdom
|
||||
Vallée S.A.1
|
Brazil
|
||||
VelosBio Inc.
|
Delaware
|
||||
Venco Farmaceutica S.A.
|
Venezuela
|
||||
Venco Holding GmbH
|
Switzerland
|
Vet Pharma Friesoythe GmbH
|
Germany
|
||||
Veterinaria Premium, Sociedad Anonima
|
Guatemala
|
||||
VetInvent, LLC
|
Delaware
|
||||
Vetrex B.V.
|
Netherlands
|
||||
Vetrex Egypt L.L.C.
|
Egypt
|
||||
Vilsan Veteriner Ilaclari Ticaret ve Sanayi Anonim Sirketi
|
Turkey
|
||||
Viralytics Limited
|
Australia
|
||||
Vocaltag Ltd.
|
Israel
|
||||
Vree Health Italia S.r.l.
|
Italy
|
||||
Vree Health Ltd.
|
United Kingdom
|
||||
Werthenstein Biopharma GmbH
|
Switzerland
|
||||
Zoöpharm B.V.
|
Netherlands
|
/s/ Kenneth C. Frazier
|
Chairman, President and Chief Executive Officer | |||||||
Kenneth C. Frazier
|
(Principal Executive Officer; Director) | |||||||
/s/ Robert M. Davis
|
Executive Vice President, Global Services,
and Chief Financial Officer |
|||||||
Robert M. Davis
|
(Principal Financial Officer) | |||||||
/s/ Rita A. Karachun
|
Senior Vice President Finance—Global Controller | |||||||
Rita A. Karachun
|
(Principal Accounting Officer) |
/s/ Leslie A. Brun | /s/ Paul B. Rothman | |||||||
Leslie A. Brun | Paul B. Rothman | |||||||
/s/ Thomas R. Cech | /s/ Patricia F. Russo | |||||||
Thomas R. Cech | Patricia F. Russo | |||||||
/s/ Mary Ellen Coe | /s/ Christine E. Seidman | |||||||
Mary Ellen Coe | Christine E. Seidman | |||||||
/s/ Pamela J. Craig | /s/ Inge G. Thulin | |||||||
Pamela J. Craig | Inge G. Thulin | |||||||
/s/ Thomas H. Glocer | /s/ Kathy J. Warden | |||||||
Thomas H. Glocer | Kathy J. Warden | |||||||
/s/ Risa J. Lavizzo-Mourey | /s/ Peter C. Wendell | |||||||
Risa J. Lavizzo-Mourey | Peter C. Wendell |
[Corporate Seal] | /s/ Kelly Grez | ||||||||||
Kelly Grez
Deputy Corporate Secretary |
By: | /s/ Kenneth C. Frazier | ||||
KENNETH C. FRAZIER
Chairman, President and Chief Executive Officer |
By: | /s/ Robert M. Davis | ||||
ROBERT M. DAVIS
Executive Vice President, Global Services, and Chief Financial Officer |
Dated: February 25, 2021 | /s/ Kenneth C. Frazier | |||||||
Name: KENNETH C. FRAZIER | ||||||||
Title: Chairman, President and Chief Executive Officer |
Dated: February 25, 2021 | /s/ Robert M. Davis | |||||||
Name: ROBERT M. DAVIS
|
||||||||
Title: Executive Vice President, Global Services,
and Chief Financial Officer
|