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Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 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:
| Three Months Ended September 30, 2018 |  | Nine Months Ended September 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 | $ | 10,794 |  |  | $ | (1 | ) |  | $ | 10,793 |  |  | $ | 31,296 |  |  | $ | (30 | ) |  | $ | 31,266 |
Materials and production | 3,619 |  |  | (1 | ) |  | 3,618 |  |  | 10,220 |  |  | (18 | ) |  | 10,202 |
Income before taxes | 2,665 |  |  | — |  |  | 2,665 |  |  | 6,097 |  |  | (12 | ) |  | 6,085 |
Taxes on income | 707 |  |  | — |  |  | 707 |  |  | 1,682 |  |  | (3 | ) |  | 1,679 |
Net income attributable to Merck & Co., Inc. | 1,950 |  |  | — |  |  | 1,950 |  |  | 4,393 |  |  | (9 | ) |  | 4,384 |
The following table provides the effects of adopting ASC 606 on the Consolidated Balance Sheet:
| September 30, 2018
($ in millions) | As Reported |  | Effects of Adopting ASC 606 |  | Amounts Without Adoption of ASC 606
Assets |  |  |  |  |
Accounts receivable | $ | 7,374 |  |  | $ | (45 | ) |  | $ | 7,329 |
Inventories | 5,416 |  |  | 19 |  |  | 5,435 |
Liabilities |  |  |  |  |  |
Accrued and other current liabilities | 9,776 |  |  | (6 | ) |  | 9,770 |
Income taxes payable | 759 |  |  | (5 | ) |  | 754 |
Equity |  |  |  |  |  |
Retained earnings | 42,189 |  |  | (15 | ) |  | 42,174 |

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