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Summary of Accounting Policies Summary of Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Impact of Adopting New Standards
The following table provides the effects of adopting ASC 606 on the Consolidated Statement of Income:
Year Ended December 31, 2018
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Sales
$
42,294

 
$
(2
)
 
$
42,292

Cost of sales
13,509

 
(6
)
 
13,503

Income before taxes
8,701

 
4

 
8,705

Taxes on income
2,508

 
1

 
2,509

Net income attributable to Merck & Co., Inc.
6,220

 
3

 
6,223


The following table provides the effects of adopting ASC 606 on the Consolidated Balance Sheet:
December 31, 2018
As Reported
 
Effects of Adopting ASC 606
 
Amounts Without Adoption of ASC 606
Assets
 
 
 
 
 
Accounts receivable
$
7,071

 
$
(13
)
 
$
7,058

Inventories
5,440

 
7

 
5,447

Liabilities
 
 
 
 
 
Accrued and other current liabilities
10,151

 
(3
)
 
10,148

Income taxes payable
1,971

 
(1
)
 
1,970

Equity
 
 
 
 
 
Retained earnings
42,579

 
(2
)
 
42,577

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
)