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Equity | 12 Months Ended
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Dec. 31, 2018
Equity [Abstract] |
Equity | Equity The Merck certificate of incorporation authorizes 6,500,000,000 shares of common stock and 20,000,000 shares of preferred stock. Capital Stock A summary of common stock and treasury stock transactions (shares in millions) is as follows:
| 2018 |  | 2017 |  | 2016
| Common Stock |  | Treasury Stock |  | Common Stock |  | Treasury Stock |  | Common Stock |  | Treasury Stock
Balance January 1 | 3,577 |  |  | 880 |  |  | 3,577 |  |  | 828 |  |  | 3,577 |  |  | 796 |
Purchases of treasury stock | — |  |  | 122 |  |  | — |  |  | 67 |  |  | — |  |  | 60 |
Issuances (1) | — |  |  | (17 | ) |  | — |  |  | (15 | ) |  | — |  |  | (28 | )
Balance December 31 | 3,577 |  |  | 985 |  |  | 3,577 |  |  | 880 |  |  | 3,577 |  |  | 828 |
(1) | Issuances primarily reflect activity under share-based compensation plans.
On October 25, 2018, the Company entered into accelerated share repurchase (ASR) agreements with two third-party financial institutions (Dealers). Under the ASR agreements, Merck agreed to purchase $5 billion of Merck’s common stock, in total, with an initial delivery of 56.7 million shares of Merck’s common stock, based on the then-current market price, made by the Dealers to Merck, and payments of $5 billion made by Merck to the Dealers on October 29, 2018, which were funded with existing cash and investments, as well as short-term borrowings. The payments to the Dealers were recorded as reductions to shareholders’ equity, consisting of a $4 billion increase in treasury stock, which reflects the value of the initial 56.7 million shares received on October 29, 2018, and a $1 billion decrease in other-paid-in capital, which reflects the value of the stock held back by the Dealers pending final settlement. The number of shares of Merck’s common stock that Merck may receive, or may be required to remit, upon final settlement under the ASR agreements will be based upon the average daily volume weighted-average price of Merck’s common stock during the term of the ASR program, less a negotiated discount. Final settlement of the transaction under the ASR agreements is expected to occur in the first half of 2019, but may occur earlier at the option of the Dealers, or later under certain circumstances. If Merck is obligated to make adjustment payments to the Dealers under the ASR agreements, Merck may elect to satisfy such obligations in cash or in shares of Merck’s common stock.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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