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Taxes on Income
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Taxes on Income Taxes on Income
The effective income tax rates from continuing operations of 29.3% and 14.4% for the second quarter of 2021 and 2020, respectively, and 15.8% and 15.6% for the first six months of 2021 and 2020, respectively. The effective income tax rates from continuing operations in the second quarter and first six months of 2021 reflect the unfavorable effect of a charge for the acquisition of Pandion for which no tax benefit was recognized. Additionally, the effective income tax rate from continuing operations for the first six months of 2021 reflects a net tax benefit of $207 million related to the settlement of certain federal income tax matters as discussed below.
In the first quarter of 2021, the Internal Revenue Service (IRS) concluded its examinations of Merck’s 2015-2016 U.S. federal income tax returns. As a result, the Company was required to make a payment of $190 million (of which $172 million related to Merck continuing operations and $18 million related to Organon discontinued operations). The Company’s reserves for unrecognized tax benefits for the years under examination exceeded the adjustments relating to this examination period and therefore the Company recorded a $236 million net tax benefit in the first six months of 2021 (of which $207 million related to Merck continuing operations and $29 million related to Organon discontinued operations). This net benefit reflects reductions in reserves for unrecognized tax benefits and other related liabilities for tax positions relating to the years that were under examination.