Item 6. Selected Financial Data.

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Item 6. Selected Financial Data.

The following selected financial data should be read in conjunction with Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and consolidated financial statements and notes thereto contained in Item 8. “Financial Statements and Supplementary Data” of this report.

Merck & Co., Inc. and Subsidiaries

($ in millions except per share amounts)



	2019 (1)			2018 (2)			2017 (3)			2016 (4)		2015 (5)
Results for Year:
Sales	$	46,840		$	42,294		$	40,122		$	39,807	$	39,498
Cost of sales	14,112			13,509			12,912			14,030		15,043
Selling, general and administrative	10,615			10,102			10,074			10,017		10,508
Research and development	9,872			9,752			10,339			10,261		6,796
Restructuring costs	638			632			776			651		619
Other (income) expense, net	139			(402		)	(500		)	189		1,131
Income before taxes	11,464			8,701			6,521			4,659		5,401
Taxes on income	1,687			2,508			4,103			718		942
Net income	9,777			6,193			2,418			3,941		4,459
Less: Net (loss) income attributable to noncontrolling interests	(66		)	(27		)	24			21		17
Net income attributable to Merck & Co., Inc.	9,843			6,220			2,394			3,920		4,442
Basic earnings per common share attributable to Merck & Co., Inc. common shareholders	$	3.84		$	2.34		$	0.88		$	1.42	$	1.58
Earnings per common share assuming dilution attributable to Merck & Co., Inc. common shareholders	$	3.81		$	2.32		$	0.87		$	1.41	$	1.56
Cash dividends declared	5,820			5,313			5,177			5,135		5,115
Cash dividends declared per common share	$	2.26		$	1.99		$	1.89		$	1.85	$	1.81
Capital expenditures	3,473			2,615			1,888			1,614		1,283
Depreciation	1,679			1,416			1,455			1,611		1,593
Average common shares outstanding (millions)	2,565			2,664			2,730			2,766		2,816
Average common shares outstanding assuming dilution (millions)	2,580			2,679			2,748			2,787		2,841
Year-End Position:
Working capital	$	5,263		$	3,669		$	6,152		$	13,410	$	10,550
Property, plant and equipment, net	15,053			13,291			12,439			12,026		12,507
Total assets	84,397			82,637			87,872			95,377		101,677
Long-term debt	22,736			19,806			21,353			24,274		23,829
Total equity	26,001			26,882			34,569			40,308		44,767
Year-End Statistics:
Number of stockholders of record	110,023			115,800			121,700			129,500		135,500
Number of employees	71,000			69,000			69,000			68,000		68,000


(1)	Amounts for 2019 include a charge for the acquisition of Peloton Therapeutics, Inc.


(2)	Amounts for 2018 include a charge related to the formation of a collaboration with Eisai Co., Ltd.


(3)	Amounts for 2017 include a provisional net tax charge related to the enactment of U.S. tax legislation and a charge related to the formation of a collaboration with AstraZeneca PLC.


(4)	Amounts for 2016 include a charge related to the settlement of worldwide patent litigation related to Keytruda.


(5)	Amounts for 2015 include a net charge related to the settlement of Vioxx shareholder class action litigation, foreign exchange losses related to Venezuela, gains on the dispositions of businesses and other assets, and the favorable benefit of certain tax items.

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