3<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n Restructuring
\n
Costs<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n (Income)
\n
Loss from
\n
Investments
\n
in Equity
\n
Securities<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Certain
\n
Other
\n
Items<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Non-
\n
GAAP<\/b>2<\/sup><\/p>\n<\/td>\n\u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCost of sales\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$3,104\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$345\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$38\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$-\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$37\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,684\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nSelling, general and
\n
administrative\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,281\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n25\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,254\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nResearch and
\n
development\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n4,321\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n16\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n6\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n1,765\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,534\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nRestructuring costs\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n82\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n82\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nOther (income)
\n
expense, net\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(103)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n117\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(258)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n38\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n Second-Quarter 2020<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCost of sales\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,747\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$580\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$25\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$-\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$-\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,142\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nSelling, general and
\n
administrative\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,085\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n44\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n11\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,030\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nResearch and
\n
development\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,085\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(63)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n31\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,117\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nRestructuring costs\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n82\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n82\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nOther (income)
\n
expense, net\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(387)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n63\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(511)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(16)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n77\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n GAAP Expense, EPS and Related Information<\/b><\/p>\n \nGross margin was 72.8% for the second quarter of 2021 compared to 70.6% for the second quarter of 2020. The increase reflects lower acquisition- and divestiture-related costs and favorable product mix, partially offset by the unfavorable effects of foreign exchange, pricing pressure and higher manufacturing costs.\n<\/p>\n \nSelling, general and administrative expenses were $2.3 billion in the second quarter of 2021, an increase of 9% compared to the second quarter of 2020. The increase primarily reflects higher promotion and administrative costs, as well as the unfavorable effects of foreign exchange.\n<\/p>\n \nResearch and development expenses were $4.3 billion in the second quarter of 2021 compared with $2.1 billion in the second quarter of 2020. The increase was primarily driven by a $1.7 billion charge for the acquisition of Pandion, as well as higher expenses related to clinical development, and increased investment in discovery research and early drug development.\n<\/p>\n \nOther (income) expense, net, was $103 million of income in the second quarter of 2021 compared to $387 million of income in the second quarter of 2020, primarily reflecting lower income from investments in equity securities in 2021 compared with 2020.\n<\/p>\n \nThe effective income tax rate of 29.3% for the second quarter of 2021 reflects no tax benefit recognized on the Pandion acquisition charge.\n<\/p>\n \nGAAP EPS was $0.48 for the second quarter of 2021 compared with $0.92 for the second quarter of 2020.\n<\/p>\n Non-GAAP Expense, EPS and Related Information<\/b><\/p>\n \nNon-GAAP gross margin was 76.5% for the second quarter of 2021 compared to 77.1% for the second quarter of 2020. The decrease in non-GAAP gross margin reflects the unfavorable effects of foreign exchange, pricing pressure and higher manufacturing costs, partially offset by favorable product mix.\n<\/p>\n \nNon-GAAP selling, general and administrative expenses were $2.3 billion in the second quarter of 2021, an increase of 11% compared to the second quarter of 2020. The increase primarily reflects higher promotion and administrative costs, as well as the unfavorable effects of foreign exchange.\n<\/p>\n \nNon-GAAP R&D expenses were $2.5 billion in the second quarter of 2021, a 20% increase compared to the second quarter of 2020. The increase primarily reflects higher expenses related to clinical development, as well as increased investment in discovery research and early drug development.\n<\/p>\n \nNon-GAAP other (income) expense, net, was $38 million of expense in the second quarter of 2021 compared to $77 million of expense in the second quarter of 2020.\n<\/p>\n \nThe non-GAAP effective income tax rate was 14.6% for the second quarter of 2021.\n<\/p>\n \nNon-GAAP EPS was $1.31 for the second quarter of 2021 compared with $1.02 for the second quarter of 2020.\n<\/p>\n \nA reconciliation of GAAP to non-GAAP net income and EPS is provided in the table that follows.\n<\/p>\n \n\n| \u00a0<\/td>\n | <\/p>\n \n$ in millions, except EPS amounts\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Second Quarter<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | | \n\u00a0<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n EPS<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nGAAP EPS\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$0.48\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$0.92\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nDifference\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n0.83\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n0.10\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nNon-GAAP EPS that excludes items listed below2<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n$1.31\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$1.02\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n Net Income<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nGAAP net income1<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n$1,213\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,341\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nDifference\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,108\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n245\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nNon-GAAP net income that excludes items listed below1,2<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n$3,321\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,586\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n Decrease (Increase) in Net Income Due to Excluded Items:<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nAcquisition- and divestiture-related costs3<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n$503\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$624\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nRestructuring costs\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n128\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n149\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n(Income) loss from investments in equity securities\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(258)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(511)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCharge for the acquisition of Pandion\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n1,704\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCharge for the discontinuation of COVID-19 development programs\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n37\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nOther\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n61\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(16)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nNet decrease (increase) in income before taxes\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n2,175\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n246\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nIncome tax (benefit) expense4<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n(67)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n(1)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nDecrease (increase) in net income\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,108\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$245\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n Financial Outlook <\/b><\/p>\n \nMerck continues to experience strong global underlying demand across its business. Consequently, at mid-July 2021 exchange rates, Merck now expects sales growth of 12% to 14% in 2021 with full-year 2021 revenue estimated to be between $46.4 billion and $47.4 billion, including a positive impact from foreign exchange of less than 2%.\n<\/p>\n \nMerck continues to believe that global health systems and patients have largely adapted to the impacts of COVID-19 disease, and that while certain negative effects will persist, the trend will continue to improve. Merck now estimates that the pandemic will have a net unfavorable impact to 2021 revenues of less than 3%, all of which relates to the pharmaceutical segment.\n<\/p>\n \nMerck expects full-year 2021 GAAP EPS to be between $4.24 and $4.34.\n<\/p>\n \nMerck expects full-year 2021 non-GAAP EPS to be between $5.47 and $5.57, including a positive impact from foreign exchange of approximately 2%. The non-GAAP range excludes acquisition- and divestiture-related costs, costs related to restructuring programs, income and losses from investments in equity securities and certain other items.\n<\/p>\n \nFor full-year 2021, Merck continues to expect the pandemic will have a negligible impact on operating expenses, as spending on the development of its COVID-19 antiviral program is expected to offset the favorable impact of lower spending in other areas due to the COVID-19 pandemic.\n<\/p>\n \nNeither the sales nor the EPS guidance ranges provided above include the impact of the potential launch of Merck\u2019s COVID-19 antiviral drug candidate, molnupiravir.\n<\/p>\n \nThe following table summarizes the company\u2019s full-year 2021 financial guidance.\n<\/p>\n \n\n| \u00a0<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n GAAP<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n Non-GAAP<\/b>2<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nRevenue\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n$46.4 to $47.4 billion\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n$46.4 to $47.4 billion*\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nOperating
\n
expenses\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \nLower than 2020 by a
\n
mid-single digit rate\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \nHigher than 2020 by a
\n
high-single digit rate\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nEffective tax rate\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n14.5% to 15.5%\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n14.5% to 15.5%\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nEPS**\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n$4.24 to $4.34\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n$5.47 to $5.57\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n*The company does not have any non-GAAP adjustments to revenue.\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n**EPS guidance for 2021 assumes a share count (assuming dilution) of approximately 2.53 billion shares.\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n \nA reconciliation of anticipated 2021 GAAP EPS to non-GAAP EPS and the items excluded from non-GAAP EPS are provided in the table below.\n<\/p>\n \n\n| \u00a0<\/td>\n | <\/p>\n \n$ in millions, except EPS amounts\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n Full-Year 2021<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n \nGAAP EPS\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$4.24 to $4.34\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nDifference\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$1.23\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nNon-GAAP EPS that excludes items listed below2<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n$5.47 to $5.57\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nAcquisition- and divestiture-related costs\n<\/p>\n \nRestructuring costs\n<\/p>\n \n(Income) loss from investments in equity securities\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$2,100\n<\/p>\n \n700\n<\/p>\n \n(1,200)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCharge for the discontinuation of COVID-19 development programs\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n225\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nCharge for the acquisition of Pandion\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n1,704\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nOther\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n61\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nNet decrease (increase) in income before taxes\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n3,590\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nIncome tax (benefit) expense4<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | \n \n(475)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n | \n \nDecrease (increase) in net income\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n$3,115\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n Earnings Conference Call<\/b><\/p>\n \nInvestors, journalists and the general public may access a live audio webcast of the call today at 8:00 a.m. EDT on Merck\u2019s website at https:\/\/investors.merck.com\/events-and-presentations\/default.aspx<\/a>. Institutional investors and analysts can participate in the call by dialing (833) 353-0277 or (469) 886-1947 and using ID code number 5951886. Members of the media are invited to monitor the call by dialing (833) 353-0277 or (469) 886-1947 and using ID code number 5951886. Journalists who wish to ask questions are requested to contact a member of Merck\u2019s Media Relations team at the conclusion of the call.\n<\/p>\nAbout Merck<\/b><\/p>\n \nFor 130 years, Merck, known as MSD outside of the United States and Canada, has been inventing for life, bringing forward medicines and vaccines for many of the world\u2019s most challenging diseases in pursuit of our mission to save and improve lives. We demonstrate our commitment to patients and population health by increasing access to health care through far-reaching policies, programs and partnerships. Today, Merck continues to be at the forefront of research to prevent and treat diseases that threaten people and animals \u2013 including cancer, infectious diseases such as HIV and Ebola and emerging animal diseases \u2013 as we aspire to be the premier research-intensive biopharmaceutical company in the world. For more information, visit www.merck.com<\/a> and connect with us on Twitter<\/a>, Facebook<\/a>, Instagram<\/a>, YouTube<\/a> and LinkedIn<\/a>.\n<\/p>\nForward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA <\/b><\/p>\n \nThis news release of Merck & Co., Inc., Kenilworth, N.J., USA (the \u201ccompany\u201d) includes \u201cforward-looking statements\u201d within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company\u2019s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline products that the products will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.\n<\/p>\n \nRisks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of the global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company\u2019s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company\u2019s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and\/or regulatory actions.\n<\/p>\n \nThe company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company\u2019s 2020 Annual Report on Form 10-K and the company\u2019s other filings with the Securities and Exchange Commission (SEC) available at the SEC\u2019s Internet site (www.sec.gov<\/a>).\n<\/p>\n \n\n| \n 1<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | Net income attributable to Merck & Co., Inc.<\/td>\n<\/tr>\n | \n| \n 2<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | Merck is providing certain 2021 and 2020 non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors\u2019 understanding of the company\u2019s results and permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management\u2019s annual compensation is derived in part using non-GAAP pretax income. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP. For a description of the non-GAAP adjustments, see Table 2a attached to this release.<\/td>\n<\/tr>\n | \n| \n 3<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | Includes expenses for the amortization of intangible assets and purchase accounting adjustments to inventories recognized as a result of acquisitions, intangible asset impairment charges and expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration. Also includes integration, transaction and certain other costs related to acquisitions and divestitures.<\/td>\n<\/tr>\n | \n| \n 4<\/sup><\/p>\n<\/td>\n| \u00a0<\/td>\n | Includes the estimated tax impact on the reconciling items. In addition, the amount for full-year 2021 includes a $207 million net tax benefit related to the settlement of certain federal income tax matters.<\/td>\n<\/tr>\n<\/table>\n\n\nMERCK & CO., INC.<\/b><\/td>\n<\/tr>\n\nCONSOLIDATED STATEMENT OF INCOME – GAAP<\/b><\/td>\n<\/tr>\n\n(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)<\/b><\/td>\n<\/tr>\n\n(UNAUDITED)<\/b><\/td>\n<\/tr>\n\nTable 1<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| On June 2, 2021, Merck completed the spinoff of products from its women\u2019s health, biosimilars and established brands businesses into a new, independent, publicly traded company named Organon & Co. (Organon) through a distribution of Organon\u2019s publicly traded stock to company shareholders. The historical results of the women\u2019s health, biosimilars and established brands businesses that were contributed to Organon in the spin-off are excluded from sales and expenses below and reflected as discontinued operations in the company\u2019s Consolidated Statements of Income provided below.<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \nGAAP<\/b><\/td>\n | \u00a0<\/b><\/td>\n | % Change<\/b><\/td>\n | | \nGAAP<\/b><\/td>\n | \u00a0<\/b><\/td>\n | % Change<\/b><\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/b><\/td>\n | | \n\u00a0<\/b><\/td>\n<\/tr>\n\n | \n | \n\n 2Q21<\/b><\/p>\n<\/td>\n | \n 2Q20<\/b><\/p>\n<\/td>\n | \u00a0<\/b><\/td>\n | | \nJune YTD 2021<\/b><\/td>\n | June YTD 2020<\/b><\/td>\n | \u00a0<\/b><\/td>\n<\/tr>\n\n | \n | \n\u00a0<\/td>\n | | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Sales<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 11,402\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9,353\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n22%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 22,029\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 19,641\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n12%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Costs, Expenses and Other<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Cost of sales<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,104\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,747\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n13%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,303\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,576\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n13%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Selling, general and administrative<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,281\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,085\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n9%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,468\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,276\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n4%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Research and development<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,321\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,085\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n*\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,732\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,260\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n58%\n<\/p>\n<\/td>\n<\/tr>\n | \nRestructuring costs (1)\u00a0<\/sup><\/td>\n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n0%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 380\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 152\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n*\n<\/p>\n<\/td>\n<\/tr>\n | \n| Other (income) expense, net\u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (103\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (387\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-73%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (558\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (325\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n72%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income from Continuing Operations Before Taxes\u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,717\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,741\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-37%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,704\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,702\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-18%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income Tax Provision\u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 503\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 396\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 741\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 891\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Income from Continuing Operations<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,214\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,345\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-48%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,963\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,811\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-18%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Less: Net Income (Loss) Attributable to Noncontrolling Interests<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Income from Continuing Operations Attributable to Merck & Co., Inc.<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,213\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,341\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-48%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,958\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,812\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-18%\n<\/p>\n<\/td>\n<\/tr>\n | \nIncome from Discontinued Operations, Net of Taxes and Amounts
Attributable to Noncontrolling Interests<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 332\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 661\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-50%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 766\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,409\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-46%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Income Attributable to Merck & Co., Inc.<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,545\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,002\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-49%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,724\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,221\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-24%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \nBasic Earnings per Common Share Attributable to Merck & Co., Inc.
Common Shareholders:<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income from Continuing Operations<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.48\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.93\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-48%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.56\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.90\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-18%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income from Discontinued Operations<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.13\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.26\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-50%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.30\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.56\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-46%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Income<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.61\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.19\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-49%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.87\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.46\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-24%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \nEarnings per Common Share Assuming Dilution Attributable to
Merck & Co., Inc. Common Shareholders:<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income from Continuing Operations<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.48\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.92\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-48%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.56\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.89\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-17%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Income from Discontinued Operations<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.13\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.26\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-50%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.30\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.55\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-45%\n<\/p>\n<\/td>\n<\/tr>\n | \n| Net Income<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.61\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.18\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-48%\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.86\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.45\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n | \n \n-24%\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| Average Shares Outstanding<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,533\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,527\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,532\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,531\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \n| Average Shares Outstanding Assuming Dilution<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,540\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,536\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,540\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,542\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n | <\/tr>\n \nTax Rate from Continuing Operations (2)<\/sup><\/td>\n | \n\n \n29.3\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n14.4\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n15.8\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | \n \n15.6\n<\/p>\n<\/td>\n | \n \n%\n<\/p>\n<\/td>\n | | \n | <\/tr>\n<\/table>\n\n\n| * 100% or greater<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | <\/tr>\n \n(1) <\/sup>Represents separation and other related costs associated with restructuring activities under the company’s formal restructuring programs.\u00a0<\/td>\n<\/tr>\n\n| \u00a0<\/td>\n<\/tr>\n | \n(2) <\/sup>The effective income tax rates for the second quarter and first six months of 2021 reflect the unfavorable impact of a charge for the acquisition of Pandion Therapeutics, Inc. for which no tax benefit was recognized.\u00a0 Additionally, the effective income tax rate for the first six months of 2021 reflects a net tax benefit of $207 million related to the settlement of certain federal income tax matters.\u00a0\u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n| MERCK & CO., INC.\u00a0<\/b><\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2021 GAAP TO NON-GAAP RECONCILIATION – CONTINUING OPERATIONS<\/b><\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)<\/b><\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| (UNAUDITED)<\/b><\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Table 2a<\/b><\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| The table below reflects a reconciliation of GAAP to non-GAAP financial information on a continuing operations basis.\u00a0 As Organon results are reflected within discontinued operations, they are excluded from the financial information provided below.\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \nGAAP<\/b><\/td>\n | | \nAcquisition and Divestiture-
Related Costs (1)<\/sup><\/b><\/td>\n | \nRestructuring Costs (2)<\/sup><\/b><\/td>\n | \n(Income) Loss from
Investments in Equity
Securities<\/b><\/td>\n | | \nCertain Other Items<\/b><\/td>\n | | \nAdjustment Subtotal<\/b><\/td>\n | | \nNon-GAAP<\/b><\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Second Quarter<\/b><\/td>\n | | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Cost of sales<\/td>\n | | \n\n \u00a0$<\/b><\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,104<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 345\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 38\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 37\n<\/p>\n<\/td>\n | \n (3)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 420\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,684\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Selling, general and administrative<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,281<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 25\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2\n<\/p>\n<\/td>\n | | \n | \n | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 27\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,254\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Research and development<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,321<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 16\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,765\n<\/p>\n<\/td>\n | \n (4)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,787\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,534\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Restructuring costs<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82\n<\/p>\n<\/td>\n | | \n | \n | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 82\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Other (income) expense, net<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (103)<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 117\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (258)\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (141)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 38\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Income From Continuing Operations Before Taxes<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,717<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (503)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (128)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 258\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,802)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,175)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,892\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Income Tax Provision (Benefit)<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 503<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (98)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (15)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 57\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (11)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (67)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 570\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Net Income from Continuing Operations<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,214<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (405)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (113)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 201\n<\/p>\n<\/td>\n | <\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,791)\n<\/p>\n<\/td>\n | <\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,108)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,322\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \nNet Income from Continuing Operations Attributable to
Merck & Co., Inc.<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,213<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (405)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (113)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 201\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,791)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,108)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,321\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \nEarnings per Common Share Assuming Dilution from
Continuing Operations<\/td>\n | | \n\n \u00a0$<\/b><\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.48<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.16)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.04)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.08\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.71)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.83)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.31\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Tax Rate\u00a0<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 29.3%<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n14.6%\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| June YTD<\/b><\/td>\n | | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Cost of sales<\/td>\n | | \n\n \u00a0$<\/b><\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,303<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 842\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 65\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 225\n<\/p>\n<\/td>\n | \n (3)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,132\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,171\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Selling, general and administrative<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,468<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 35\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4\n<\/p>\n<\/td>\n | | \n | \n | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 39\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,429\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Research and development<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,732<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 34\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 13\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,765\n<\/p>\n<\/td>\n | \n (4)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,812\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,920\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Restructuring costs<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 380<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 380\n<\/p>\n<\/td>\n | | \n | \n | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 380\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 –\u00a0\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Other (income) expense, net<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (558)<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 89\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (819)\n<\/p>\n<\/td>\n | | \n | \n | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (730)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 172\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Income From Continuing Operations Before Taxes<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,704<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,000)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (462)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 819\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,990)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,633)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7,337\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Income Tax Provision (Benefit)<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 741<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (187)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (56)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 180\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (260)\n<\/p>\n<\/td>\n | \n (5)<\/sup><\/p>\n<\/td>\n| \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (323)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,064\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Net Income from Continuing Operations<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,963<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (813)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (406)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 639\n<\/p>\n<\/td>\n | <\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,730)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,310)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,273\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \nNet Income from Continuing Operations Attributable to
Merck & Co., Inc.<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,958<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (813)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (406)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 639\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,730)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (2,310)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,268\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \nEarnings per Common Share Assuming Dilution from
Continuing Operations<\/td>\n | | \n\n \u00a0$<\/b><\/p>\n<\/td>\n | \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.56<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.32)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.16)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.25\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.68)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (0.91)\n<\/p>\n<\/td>\n | | \n\n \n\u00a0$\n<\/p>\n<\/td>\n | \n \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2.47\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n\u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| Tax Rate\u00a0<\/td>\n | | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n 15.8%<\/b><\/p>\n<\/td>\n | \u00a0<\/td>\n | | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n\n \n\u00a0\n<\/p>\n<\/td>\n | \n \n14.5%\n<\/p>\n<\/td>\n | \u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n| Only the line items that are affected by non-GAAP adjustments are shown.<\/td>\n<\/tr>\n | \n| Merck is providing certain non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors\u2019 understanding of the company\u2019s results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. In addition, senior management\u2019s annual compensation is derived in part using non-GAAP pretax income. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.\u00a0<\/td>\n<\/tr>\n | \n| \u00a0<\/td>\n<\/tr>\n | \n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |