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Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Effects of Adopting ASC 606
The impact of adopting the above standards is as follows:
($ in millions)
ASU 2014-09 (Revenue)
 
ASU 2016-01 (Financial Instruments)
 
ASU 2016-16 (Intra-Entity Transfers of Assets Other than Inventory)
 
ASU 2017-12 (Derivatives and Hedging)
 
ASU 2018-02 (Reclassification of Certain Tax Effects)
 
Total
Assets - Debit (Credit)
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
$
5

 
 
 
 
 
 
 
 
 
$
5

Liabilities - Credit (Debit)
 
 
 
 
 
 
 
 
 
 


Income Taxes Payable
 
 
 
 
 
 
(3
)
 
 
 
(3
)
Debt
 
 
 
 
 
 
14

 
 
 
14

Deferred Income Taxes
 
 
 
 
(54
)
 
 
 
 
 
(54
)
Equity - Credit (Debit)
 
 
 
 
 
 
 
 
 
 
 
Retained earnings
5

 
8

 
54

 
(11
)
 
266

 
322

Accumulated other comprehensive loss
 
 
(8
)
 
 
 
 
 
(266
)
 
(274
)
The following table provides the effects of adopting ASC 606 on the Consolidated Statement of Income in the first quarter of 2018:
 
Three Months Ended March 31, 2018
($ in millions)
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Sales
$
10,037

 
$
(24
)
 
$
10,013

Materials and production
3,184

 
(11
)
 
3,173

Income before taxes
1,345

 
(13
)
 
1,332

Taxes on income
604

 
(2
)
 
602

Net income attributable to Merck & Co., Inc.
736

 
(11
)
 
725


The following table provides the effects of adopting ASC 606 on the consolidated balance sheet as of March 31, 2018:
 
March 31, 2018
($ in millions)
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Assets
 
 
 
 
 
Accounts receivable
$
7,245

 
$
(36
)
 
$
7,209

Inventories
5,382

 
13

 
5,395

Liabilities
 
 
 
 


Accrued and other current liabilities
9,709

 
(3
)
 
9,706

Income taxes payable
717

 
(4
)
 
713

Equity
 
 
 
 


Retained earnings
41,107

 
(16
)
 
41,091