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Loans Payable, Long-Term Debt and Other Commitments | 12 Months Ended
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Dec. 31, 2018
Debt Disclosure [Abstract] |
Loans Payable, Long-Term Debt and Other Commitments | Loans Payable, Long-Term Debt and Other Commitments Loans payable at December 31, 2018 included $5.1 billion of commercial paper and $149 million of long-dated notes that are subject to repayment at the option of the holders. Loans payable at December 31, 2017 included $3.0 billion of notes due in 2018 and $73 million of long-dated notes that are subject to repayment at the option of the holders. The weighted-average interest rate of commercial paper borrowings was 2.09% and 0.85% for the years ended December 31, 2018 and 2017, respectively. Long-term debt at December 31 consisted of:
| 2018 |  | 2017
2.75% notes due 2025 | $ | 2,490 |  |  | $ | 2,488 |
3.70% notes due 2045 | 1,974 |  |  | 1,973 |
2.80% notes due 2023 | 1,745 |  |  | 1,744 |
4.15% notes due 2043 | 1,237 |  |  | 1,237 |
1.85% notes due 2020 | 1,231 |  |  | 1,232 |
2.35% notes due 2022 | 1,214 |  |  | 1,220 |
1.125% euro-denominated notes due 2021 | 1,134 |  |  | 1,185 |
3.875% notes due 2021 | 1,132 |  |  | 1,140 |
1.875% euro-denominated notes due 2026 | 1,127 |  |  | 1,178 |
2.40% notes due 2022 | 983 |  |  | 993 |
6.50% notes due 2033 | 726 |  |  | 729 |
Floating-rate notes due 2020 | 699 |  |  | 699 |
0.50% euro-denominated notes due 2024 | 565 |  |  | 591 |
1.375% euro-denominated notes due 2036 | 561 |  |  | 587 |
2.50% euro-denominated notes due 2034 | 560 |  |  | 585 |
3.60% notes due 2042 | 490 |  |  | 489 |
6.55% notes due 2037 | 414 |  |  | 415 |
5.75% notes due 2036 | 338 |  |  | 338 |
5.95% debentures due 2028 | 306 |  |  | 306 |
5.85% notes due 2039 | 270 |  |  | 270 |
6.40% debentures due 2028 | 250 |  |  | 250 |
6.30% debentures due 2026 | 135 |  |  | 135 |
5.00% notes due 2019 | — |  |  | 1,260 |
Other | 225 |  |  | 309 |
| $ | 19,806 |  |  | $ | 21,353 |
Other (as presented in the table above) includes $223 million and $300 million at December 31, 2018 and 2017, respectively, of borrowings at variable rates that resulted in effective interest rates of 2.27% and 1.42% for 2018 and 2017, respectively. With the exception of the 6.30% debentures due 2026, the notes listed in the table above are redeemable in whole or in part, at Merck’s option at any time, at varying redemption prices. In December 2018, the Company exercised a make-whole provision on its $1.25 billion, 5.00% notes due 2019 and repaid this debt. In November 2017, the Company launched tender offers for certain outstanding notes and debentures. The Company paid $810 million in aggregate consideration (applicable purchase price together with accrued interest) to redeem $585 million principal amount of debt that was validly tendered in connection with the tender offers and recognized a loss on extinguishment of debt of $191 million in 2017. Effective as of November 3, 2009, the Company executed a full and unconditional guarantee of the then existing debt of its subsidiary Merck Sharp & Dohme Corp. (MSD) and MSD executed a full and unconditional guarantee of the then existing debt of the Company (excluding commercial paper), including for payments of principal and interest. These guarantees do not extend to debt issued subsequent to that date. Certain of the Company’s borrowings require that Merck comply with covenants and, at December 31, 2018, the Company was in compliance with these covenants. The aggregate maturities of long-term debt for each of the next five years are as follows: 2019, no maturities; 2020, $1.9 billion; 2021, $2.3 billion; 2022, $2.2 billion; 2023, $1.7 billion. The Company has a $6.0 billion credit facility that matures in June 2023. The facility provides backup liquidity for the Company’s commercial paper borrowing facility and is to be used for general corporate purposes. The Company has not drawn funding from this facility. Rental expense under operating leases, net of sublease income, was $322 million in 2018, $327 million in 2017 and $292 million in 2016. The minimum aggregate rental commitments under noncancellable leases are as follows: 2019, $188 million; 2020, $198 million; 2021, $150 million; 2022, $134 million; 2023, $84 million and thereafter, $243 million. The Company has no significant capital leases.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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