Merck & Co. Inc.
For the period ended Dec 31, 2023. Filed Feb 26, 2024.
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FY2023 · Filed Feb 26, 2024
MRK$146.73-0.1%Stored close · as of Nov 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Financial Statements
(a)Financial Statements
The consolidated balance sheet of Merck & Co., Inc. and subsidiaries as of December 31, 2023 and 2022, and the related consolidated statements of income, of comprehensive (loss) income, of equity and of cash flows for each of the three years in the period ended December 31, 2023, the notes to consolidated financial statements, and the report dated February 26, 2024 of PricewaterhouseCoopers LLP, independent registered public accounting firm, are as follows:
Consolidated Statement of Income
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Sales | $60,115 | $59,283 | $48,704 |
| Costs, Expenses and Other | |||
| Cost of sales | 16,126 | 17,411 | 13,626 |
| Selling, general and administrative | 10,504 | 10,042 | 9,634 |
| Research and development | 30,531 | 13,548 | 12,245 |
| Restructuring costs | 599 | 337 | 661 |
| Other (income) expense, net | 466 | 1,501 | (1,341) |
| 58,226 | 42,839 | 34,825 | |
| Income from Continuing Operations Before Taxes | 1,889 | 16,444 | 13,879 |
| Taxes on Income from Continuing Operations | 1,512 | 1,918 | 1,521 |
| Net Income from Continuing Operations | 377 | 14,526 | 12,358 |
| Less: Net Income Attributable to Noncontrolling Interests | 12 | 7 | 13 |
| Net Income from Continuing Operations Attributable to Merck & Co., Inc. | 365 | 14,519 | 12,345 |
| Income from Discontinued Operations, Net of Taxes and Amounts Attributable to Noncontrolling Interests | — | — | 704 |
| Net Income Attributable to Merck & Co., Inc. | $365 | $14,519 | $13,049 |
| Basic Earnings per Common Share Attributable to Merck & Co., Inc. Common Shareholders | |||
| Income from Continuing Operations | $0.14 | $5.73 | $4.88 |
| Income from Discontinued Operations | — | — | 0.28 |
| Net Income | $0.14 | $5.73 | $5.16 |
| Earnings per Common Share Assuming Dilution Attributable to Merck & Co., Inc. Common Shareholders | |||
| Income from Continuing Operations | $0.14 | $5.71 | $4.86 |
| Income from Discontinued Operations | — | — | 0.28 |
| Net Income | $0.14 | $5.71 | $5.14 |
Consolidated Statement of Comprehensive (Loss) Income
($ in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Net Income Attributable to Merck & Co., Inc. | $365 | $14,519 | $13,049 |
| Other Comprehensive (Loss) Income Net of Taxes: | |||
| Net unrealized (loss) gain on derivatives, net of reclassifications | (97) | (71) | 410 |
| Benefit plan net (loss) gain and prior service (cost) credit, net of amortization | (385) | 335 | 1,769 |
| Cumulative translation adjustment | 89 | (603) | (423) |
| (393) | (339) | 1,756 | |
| Comprehensive (Loss) Income Attributable to Merck & Co., Inc. | $(28) | $14,180 | $14,805 |
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Balance Sheet
December 31
| 2023 | 2022 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $6,841 | $12,694 |
| Short-term investments | 252 | 498 |
| Accounts receivable (net of allowance for doubtful accounts of $88 in 2023 and $72 in 2022) | 10,349 | 9,450 |
| Inventories (excludes inventories of $3,348 in 2023 and $2,938 in 2022classified in Other assets - see Note 8) | 6,358 | 5,911 |
| Other current assets | 8,368 | 7,169 |
| Total current assets | 32,168 | 35,722 |
| Investments | 252 | 1,015 |
| Property, Plant and Equipment (at cost) | ||
| Land | 326 | 295 |
| Buildings | 14,966 | 13,166 |
| Machinery, equipment and office furnishings | 17,763 | 16,760 |
| Construction in progress | 8,262 | 9,186 |
| 41,317 | 39,407 | |
| Less: accumulated depreciation | 18,266 | 17,985 |
| 23,051 | 21,422 | |
| Goodwill | 21,197 | 21,204 |
| Other Intangibles, Net | 18,011 | 20,269 |
| Other Assets | 11,996 | 9,528 |
| $106,675 | $109,160 | |
| Liabilities and Equity | ||
| Current Liabilities | ||
| Loans payable and current portion of long-term debt | $1,372 | $1,946 |
| Trade accounts payable | 3,922 | 4,264 |
| Accrued and other current liabilities | 15,766 | 14,159 |
| Income taxes payable | 2,649 | 1,986 |
| Dividends payable | 1,985 | 1,884 |
| Total current liabilities | 25,694 | 24,239 |
| Long-Term Debt | 33,683 | 28,745 |
| Deferred Income Taxes | 871 | 1,795 |
| Other Noncurrent Liabilities | 8,792 | 8,323 |
| Merck & Co., Inc. Stockholders’ Equity | ||
| Common stock, $0.50 par valueAuthorized - 6,500,000,000 sharesIssued - 3,577,103,522 shares in 2023 and 2022 | 1,788 | 1,788 |
| Other paid-in capital | 44,509 | 44,379 |
| Retained earnings | 53,895 | 61,081 |
| Accumulated other comprehensive loss | (5,161) | (4,768) |
| 95,031 | 102,480 | |
| Less treasury stock, at cost: 1,045,470,249 shares in 2023 and 1,039,269,638 shares in 2022 | 57,450 | 56,489 |
| Total Merck & Co., Inc. stockholders’ equity | 37,581 | 45,991 |
| Noncontrolling Interests | 54 | 67 |
| Total equity | 37,635 | 46,058 |
| $106,675 | $109,160 | |
Consolidated Statement of Equity
| CommonStock | OtherPaid-InCapital | RetainedEarnings | AccumulatedOtherComprehensiveLoss | TreasuryStock | Non-controllingInterests | Total | |
|---|---|---|---|---|---|---|---|
| Balance January 1, 2021 | $1,788 | $39,588 | $47,362 | $(6,634) | $(56,787) | $87 | $25,404 |
| Net income attributable to Merck & Co., Inc. | — | — | 13,049 | — | — | — | 13,049 |
| Other comprehensive income, net of taxes | — | — | — | 1,756 | — | — | 1,756 |
| Cash dividends declared on common stock ($2.64 per share) | — | — | (6,715) | — | — | — | (6,715) |
| Treasury stock shares purchased | — | — | — | — | (840) | — | (840) |
| Spin-off of Organon & Co. | — | 4,643 | — | 449 | — | (1) | 5,091 |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 16 | 16 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (29) | (29) |
| Share-based compensation plans and other | — | 7 | — | — | 518 | — | 525 |
| Balance December 31, 2021 | 1,788 | 44,238 | 53,696 | (4,429) | (57,109) | 73 | 38,257 |
| Net income attributable to Merck & Co., Inc. | — | — | 14,519 | — | — | — | 14,519 |
| Other comprehensive loss, net of taxes | — | — | — | (339) | — | — | (339) |
| Cash dividends declared on common stock ($2.80 per share) | — | — | (7,134) | — | — | — | (7,134) |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 7 | 7 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (13) | (13) |
| Share-based compensation plans and other | — | 141 | — | — | 620 | — | 761 |
| Balance December 31, 2022 | 1,788 | 44,379 | 61,081 | (4,768) | (56,489) | 67 | 46,058 |
| Net income attributable to Merck & Co., Inc. | — | — | 365 | — | — | — | 365 |
| Other comprehensive loss, net of taxes | — | — | — | (393) | — | — | (393) |
| Cash dividends declared on common stock ($2.96 per share) | — | — | (7,551) | — | — | — | (7,551) |
| Treasury stock shares purchased | — | — | — | — | (1,346) | — | (1,346) |
| Net income attributable to noncontrolling interests | — | — | — | — | — | 12 | 12 |
| Distributions attributable to noncontrolling interests | — | — | — | — | — | (25) | (25) |
| Share-based compensation plans and other | — | 130 | — | — | 385 | — | 515 |
| Balance December 31, 2023 | $1,788 | $44,509 | $53,895 | $(5,161) | $(57,450) | $54 | $37,635 |
Consolidated Statement of Cash Flows
($ in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash Flows from Operating Activities of Continuing Operations | |||
| Net income from continuing operations | $377 | $14,526 | $12,358 |
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations: | |||
| Amortization | 2,044 | 2,085 | 1,636 |
| Depreciation | 1,828 | 1,824 | 1,578 |
| Intangible asset impairment charges | 792 | 1,749 | 302 |
| (Income) loss from investments in equity securities, net | (340) | 1,419 | (1,940) |
| Charge for the acquisition of Prometheus Biosciences, Inc. | 10,217 | — | — |
| Charge for the acquisition of Imago BioSciences, Inc. | 1,192 | — | — |
| Charge for the acquisition of Pandion Therapeutics, Inc. | — | — | 1,556 |
| Deferred income taxes | (1,899) | (1,568) | 187 |
| Share-based compensation | 645 | 541 | 479 |
| Other | 355 | 1,301 | 805 |
| Net changes in assets and liabilities: | |||
| Accounts receivable | (1,148) | (644) | (2,033) |
| Inventories | (816) | (161) | (674) |
| Trade accounts payable | (380) | (289) | 405 |
| Accrued and other current liabilities | 1,783 | (50) | 277 |
| Income taxes payable | 214 | 380 | (540) |
| Noncurrent liabilities | 456 | (545) | 484 |
| Other | (2,314) | (1,473) | (1,758) |
| Net Cash Provided by Operating Activities of Continuing Operations | 13,006 | 19,095 | 13,122 |
| Cash Flows from Investing Activities of Continuing Operations | |||
| Capital expenditures | (3,863) | (4,388) | (4,448) |
| Purchases of securities and other investments | (955) | (1,204) | (1) |
| Proceeds from sale of Seagen Inc. common stock | 1,145 | — | — |
| Proceeds from sales of securities and other investments | 1,658 | 721 | 1,026 |
| Acquisition of Prometheus Biosciences, Inc., net of cash acquired | (10,705) | — | — |
| Acquisition of Imago BioSciences Inc., net of cash acquired | (1,327) | — | — |
| Acquisition of Acceleron Pharma Inc., net of cash acquired | — | — | (11,174) |
| Acquisition of Pandion Therapeutics, Inc., net of cash acquired | — | — | (1,554) |
| Other acquisitions, net of cash acquired | — | (121) | (179) |
| Other | (36) | 32 | (91) |
| Net Cash Used in Investing Activities of Continuing Operations | (14,083) | (4,960) | (16,421) |
| Cash Flows from Financing Activities of Continuing Operations | |||
| Net change in short-term borrowings | — | — | (3,986) |
| Payments on debt | (1,755) | (2,251) | (2,319) |
| Proceeds from issuance of debt | 5,939 | — | 7,936 |
| Distribution from Organon & Co. | — | — | 9,000 |
| Purchases of treasury stock | (1,346) | — | (840) |
| Dividends paid to stockholders | (7,445) | (7,012) | (6,610) |
| Proceeds from exercise of stock options | 125 | 384 | 202 |
| Other | (328) | (240) | (286) |
| Net Cash (Used in) Provided by Financing Activities of Continuing Operations | (4,810) | (9,119) | 3,097 |
| Cash Flows from Discontinued Operations | |||
| Net cash provided by operating activities | — | — | 987 |
| Net cash used in investing activities | — | — | (134) |
| Net cash used in financing activities | — | — | (504) |
| Net Cash Flows Provided by Discontinued Operations | — | — | 349 |
| Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 23 | (410) | (133) |
| Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (5,864) | 4,606 | 14 |
| Cash, Cash Equivalents and Restricted Cash at Beginning of Year (includes $79, $71 and $103 of restricted cash at January 1, 2023, 2022 and 2021, respectively, included in Other current assets) | 12,773 | 8,167 | 8,153 |
| Cash, Cash Equivalents and Restricted Cash at End of Year (includes $68, $79 and $71 of restricted cash at December 31, 2023, 2022 and 2021, respectively, included in Other current assets) | $6,909 | $12,773 | $8,167 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.