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Pension and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
The Company has defined benefit pension plans covering eligible employees in the U.S. and in certain of its international subsidiaries. The net periodic benefit cost of such plans (including certain costs reported as part of discontinued operations) consisted of the following components: 
  Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
($ in millions)U.S.InternationalU.S.InternationalU.S.InternationalU.S.International
Service cost$104 $75 $96 $76 $302 $254 $270 $222 
Interest cost102 33 107 35 305 92 323 102 
Expected return on plan assets(188)(105)(193)(104)(568)(313)(581)(309)
Amortization of unrecognized prior service credit
(9)(3)(12)(3)(29)(12)(37)(9)
Net loss amortization75 32 75 32 218 110 228 94 
Termination benefits2 — 1 1 54 3 5 2 
Curtailments(1)— 1 — 15 (27)4 (1)
Settlements139 — 2 — 139 2 11 2 
 $224 $32 $77 $37 $436 $109 $223 $103 
The Company provides medical benefits, principally to its eligible U.S. retirees and similar benefits to their dependents, through its other postretirement benefit plans. The net credit of such plans consisted of the following components: 
  Three Months Ended
September 30,		Nine Months Ended
September 30,
($ in millions)2021202020212020
Service cost$11 $13 $37 $39 
Interest cost12 14 34 43 
Expected return on plan assets(20)(19)(59)(56)
Amortization of unrecognized prior service credit(16)(18)(48)(54)
Net gain amortization(12)(5)(30)(13)
Termination benefits— — 37 — 
Curtailments(1)— (29)(1)
 $(26)$(15)$(58)$(42)
Net periodic benefit cost (credit) for pension and other postretirement benefit plans in the first nine months of 2021 includes expenses for curtailments, settlements and termination benefits provided to certain employees in connection with the spin-off of Organon.
In connection with restructuring actions (see Note 5), termination charges were recorded on pension plans related to expanded eligibility for certain employees exiting Merck. Also, in connection with these restructuring actions, curtailments and settlements were recorded on pension plans. In addition, lump sum payments to U.S. pension plan participants triggered a partial settlement resulting in a charge of approximately $125 million in the third quarter and first nine months of 2021. This partial settlement triggered a remeasurement of some of the Company’s U.S. pension plans. This remeasurement, which was calculated using discount rates and asset values as of September 30, 2021, resulted in a net increase of $160 million to net pension liabilities and also resulted in a related adjustment to AOCL.
The components of net periodic benefit cost (credit) other than the service cost component are included in Other (income) expense, net (see Note 12), with the exception of certain amounts for termination benefits, curtailments and settlements, which are recorded in Restructuring costs if the event giving rise to the termination benefits, curtailment or settlement is related to restructuring actions or in Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests if related to the spin-off of Organon (each as noted above).
The transfer of employees to Organon in connection with the spin-off triggered remeasurements of some of the Company’s pension plans. These remeasurements, which were calculated using discount rates and asset values as of the date of the spin-off, resulted in a $1.7 billion reduction to net pension liabilities primarily due to higher discount rates. In addition, $99 million of net pension liabilities were transferred to Organon. The remeasurements and plan transfers also resulted in a related adjustment to AOCL (see Note 15).