XML 64 R40.htm IDEA: XBRL DOCUMENT v3.20.4

Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Reconciliation Between Effective Tax Rate and U.S. Statutory Rate

A reconciliation between the effective tax rate and the U.S. statutory rate is as follows:

			2020												2019												2018
			Amount						Tax Rate						Amount						Tax Rate						Amount						Tax Rate
U.S. statutory rate applied to income before taxes			$	1,846					21.0		%				$	2,408					21.0		%				$	1,827					21.0		%
Differential arising from:
Foreign earnings			(1,242)						(14.1)						(1,020)						(8.9)						(245)						(2.8)
GILTI and the foreign-derived intangible income deduction			364						4.1						336						2.9						(25)						(0.3)
R&D tax credit			(110)						(1.3)						(118)						(1.0)						(96)						(1.1)
Tax settlements			(13)						(0.2)						(403)						(3.5)						(22)						(0.3)
Acquisition of VelosBio			559						6.3						—						—						—						—
Restructuring			105						1.2						39						0.3						56						0.6
Acquisition of OncoImmune			97						1.1						—						—						—						—
State taxes			67						0.8						(2)						—						201						2.3
Acquisition-related costs, including amortization			46						0.5						95						0.8						267						3.1
Valuation allowances			42						0.5						113						1.0						269						3.1
Acquisition of Peloton			—						—						209						1.8						—						—
Tax Cuts and Jobs Act of 2017			—						—						117						1.0						289						3.3
Other			(52)						(0.5)						(87)						(0.7)						(13)						(0.1)
			$	1,709					19.4		%				$	1,687					14.7		%				$	2,508					28.8		%

Income Before Taxes

Income before taxes consisted of:

Years Ended December 31			2020						2019						2018
Domestic			$	(3,492)					$	439					$	3,717
Foreign			12,283						11,025						4,984
			$	8,791					$	11,464					$	8,701

Taxes on Income

Taxes on income consisted of:

Years Ended December 31			2020						2019						2018
Current provision
Federal			$	962					$	514					$	536
Foreign			1,362						1,806						2,281
State			53						(77)						200
			2,377						2,243						3,017
Deferred provision
Federal			(605)						(330)						(402)
Foreign			(40)						(240)						(64)
State			(23)						14						(43)
			(668)						(556)						(509)
			$	1,709					$	1,687					$	2,508

Deferred Income Taxes

Deferred income taxes at December 31 consisted of:

			2020												2019
			Assets						Liabilities						Assets						Liabilities
Product intangibles and licenses			$	141					$	1,250					$	442					$	1,778
Inventory related			43						335						32						354
Accelerated depreciation			—						588						—						594
Equity investments			—						175						—						—
Pensions and other postretirement benefits			834						248						785						191
Compensation related			252						—						322						—
Unrecognized tax benefits			117						—						109						—
Net operating losses and other tax credit carryforwards			794						—						897						—
Other			808						81						764						84
Subtotal			2,989						2,677						3,351						3,001
Valuation allowance			(433)												(1,100)
Total deferred taxes			$	2,556					$	2,677					$	2,251					$	3,001
Net deferred income taxes									$	121											$	750
Recognized as:
Other Assets			$	894											$	719
Deferred Income Taxes									$	1,015											$	1,470

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

			2020						2019						2018
Balance January 1			$	1,225					$	1,893					$	1,723
Additions related to current year positions			298						199						221
Additions related to prior year positions			110						46						142
Reductions for tax positions of prior years (1)			(4)						(454)						(73)
Settlements (1)			(70)						(356)						(91)
Lapse of statute of limitations (2)			(22)						(103)						(29)
Balance December 31			$	1,537					$	1,225					$	1,893

(1)    Amounts in 2019 reflects the settlement with the IRS discussed below.

(2) Amount in 2019 includes $78 million related to the divestiture of Merck’s Consumer Care business in 2014.

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=121610041&loc=d3e36027-109320

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration