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Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 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 - Increase (Decrease)
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
$
5

 
 
 
 
 
 
 
 
 
$
5

Liabilities - Increase (Decrease)
 
 
 
 
 
 
 
 
 
 


Income Taxes Payable
 
 
 
 
 
 
(3
)
 
 
 
(3
)
Debt
 
 
 
 
 
 
14

 
 
 
14

Deferred Income Taxes
 
 
 
 
(54
)
 
 
 
 
 
(54
)
Equity - Increase (Decrease)
 
 
 
 
 
 
 
 
 
 
 
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 for the three and six months ended June 30, 2018:
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
($ in millions)
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
 
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Sales
$
10,465

 
$
(6
)
 
$
10,459

 
$
20,502

 
$
(29
)
 
$
20,473

Materials and production
3,417

 
(5
)
 
3,412

 
6,601

 
(16
)
 
6,585

Income before taxes
2,086

 
(1
)
 
2,085

 
3,432

 
(13
)
 
3,419

Taxes on income
370

 
(1
)
 
369

 
975

 
(3
)
 
972

Net income attributable to Merck & Co., Inc.
1,707

 
—

 
1,707

 
2,443

 
(10
)
 
2,433


The following table provides the effects of adopting ASC 606 on the Consolidated Balance Sheet as of June 30, 2018:
 
June 30, 2018
($ in millions)
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Assets
 
 
 
 
 
Accounts receivable
$
7,287

 
$
(47
)
 
$
7,240

Inventories
5,178

 
18

 
5,196

Liabilities
 
 
 
 


Accrued and other current liabilities
9,755

 
(9
)
 
9,746

Income taxes payable
661

 
(5
)
 
656

Equity
 
 
 
 


Retained earnings
41,523

 
(15
)
 
41,508