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10-K 1 mrk1231201810k.htm 2018 FORM 10-K

As filed with the Securities and Exchange Commission on February 27, 2019

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549


FORM 10-K

(MARK ONE)

☒Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 2018
or
☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to

Commission File No. 1-6571


Merck & Co., Inc.

2000 Galloping Hill Road

Kenilworth, N. J. 07033

(908) 740-4000

Incorporated in New JerseyI.R.S. Employer Identification No. 22-1918501
Securities Registered pursuant to Section 12(b) of the Act:
Title of Each ClassName of Each Exchange on which Registered
Common Stock ($0.50 par value)New York Stock Exchange
1.125% Notes due 2021New York Stock Exchange
0.500% Notes due 2024New York Stock Exchange
1.875% Notes due 2026New York Stock Exchange
2.500% Notes due 2034New York Stock Exchange
1.375% Notes due 2036New York Stock Exchange

Number of shares of Common Stock ($0.50 par value) outstanding as of January 31, 2019: 2,581,220,308.

Aggregate market value of Common Stock ($0.50 par value) held by non-affiliates on June 30, 2018 based on closing price on June 30, 2018: $161,991,000,000.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Documents Incorporated by Reference:
DocumentPart of Form 10-K
Proxy Statement for the Annual Meeting of Shareholders to be held May 28, 2019, to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year covered by this reportPart III

Table of Contents

Page
Part I
Item 1.Business1
Item 1A.Risk Factors20
Cautionary Factors that May Affect Future Results30
Item 1B.Unresolved Staff Comments31
Item 2.Properties31
Item 3.Legal Proceedings31
Item 4.Mine Safety Disclosures31
Executive Officers of the Registrant32
Part II
Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities33
Item 6.Selected Financial Data35
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations36
Item 7A.Quantitative and Qualitative Disclosures About Market Risk67
Item 8.Financial Statements and Supplementary Data68
(a)Financial Statements68
Notes to Consolidated Financial Statements72
Report of Independent Registered Public Accounting Firm127
(b)Supplementary Data129
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure130
Item 9A.Controls and Procedures130
Management’s Report130
Item 9B.Other Information131
Part III
Item 10.Directors, Executive Officers and Corporate Governance132
Item 11.Executive Compensation132
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters133
Item 13.Certain Relationships and Related Transactions, and Director Independence133
Item 14.Principal Accountant Fees and Services133
Part IV
Item 15.Exhibits and Financial Statement Schedules134
Item 16.Form 10-K Summary137
Signatures138

PART I

Next: Item 1. Business.