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Taxes on Income (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate
A reconciliation between the effective tax rate and the U.S. statutory rate is as follows:
 
2016
 
2015
 
2014
  
Amount
 
Tax Rate
 
Amount
 
Tax Rate
 
Amount
 
Tax Rate
U.S. statutory rate applied to income before taxes
$
1,631

 
35.0
 %
 
$
1,890

 
35.0
 %
 
$
6,049

 
35.0
 %
Differential arising from:
 
 
 
 
 
 
 
 
 
 
 
Foreign earnings
(1,593
)
 
(34.2
)
 
(2,105
)
 
(39.0
)
 
(1,367
)
 
(7.9
)
Unremitted foreign earnings
(30
)
 
(0.6
)
 
260

 
4.8

 
(209
)
 
(1.2
)
Tax settlements
—

 
—

 
(417
)
 
(7.7
)
 
(89
)
 
(0.5
)
AstraZeneca option exercise
—

 
—

 
—

 
—

 
(774
)
 
(4.5
)
Sale of Sirna Therapeutics, Inc.
—

 
—

 
—

 
—

 
(357
)
 
(2.1
)
Impact of purchase accounting adjustments, including amortization
623

 
13.4

 
797

 
14.8

 
1,013

 
5.9

Foreign currency devaluation related to Venezuela
—

 
—

 
321

 
5.9

 
—

 
—

State taxes
173

 
3.7

 
159

 
2.9

 
7

 
—

Restructuring
145

 
3.1

 
167

 
3.1

 
289

 
1.7

U.S. health care reform legislation
68

 
1.4

 
66

 
1.2

 
134

 
0.8

Divestiture of Merck Consumer Care
—

 
—

 
—

 
—

 
440

 
2.5

Other (1)
(299
)
 
(6.4
)
 
(196
)
 
(3.6
)
 
213

 
1.2

 
$
718

 
15.4
 %
 
$
942

 
17.4
 %
 
$
5,349

 
30.9
 %
(1) 
Other includes the tax effect of contingency reserves, research credits, and miscellaneous items.
Income Before Taxes
Income before taxes consisted of:
Years Ended December 31
2016
 
2015
 
2014
Domestic
$
518

 
$
2,247

 
$
15,730

Foreign
4,141

 
3,154

 
1,553

 
$
4,659

 
$
5,401

 
$
17,283
Taxes on Income
Taxes on income consisted of:
Years Ended December 31
2016
 
2015
 
2014
Current provision
 
 
 
 
 
Federal
$
1,166

 
$
732

 
$
7,136

Foreign
916

 
844

 
438

State
157

 
130

 
375

 
2,239

 
1,706

 
7,949

Deferred provision
 
 
 
 
 
Federal
(1,255
)
 
(552
)
 
(2,162
)
Foreign
(225
)
 
(163
)
 
(201
)
State
(41
)
 
(49
)
 
(237
)
 
(1,521
)
 
(764
)
 
(2,600
)
 
$
718

 
$
942

 
$
5,349
Deferred Income Taxes
Deferred income taxes at December 31 consisted of:
 
2016
 
2015
  
Assets
 
Liabilities
 
Assets
 
Liabilities
Intangibles
$
86

 
$
3,734

 
$
—

 
$
4,962

Inventory related
30

 
660

 
49

 
752

Accelerated depreciation
28

 
927

 
43

 
910

Unremitted foreign earnings
—

 
2,044

 
—

 
2,124

Pensions and other postretirement benefits
727

 
109

 
435

 
131

Compensation related
438

 
—

 
535

 
—

Unrecognized tax benefits
383

 
—

 
412

 
—

Net operating losses and other tax credit carryforwards
437

 
—

 
565

 
—

Other
1,128

 
46

 
1,217

 
—

Subtotal
3,257

 
7,520

 
3,256

 
8,879

Valuation allowance
(268
)
 
 
 
(304
)
 
 
Total deferred taxes
$
2,989

 
$
7,520

 
$
2,952

 
$
8,879

Net deferred income taxes
 
 
$
4,531

 
 
 
$
5,927

Recognized as:
 
 
 
 
 
 
 
Other assets
$
546

 
 
 
$
608

 
 
Deferred income taxes
 
 
$
5,077

 
 
 
$
6,535
Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
2016
 
2015
 
2014
Balance January 1
$
3,448

 
$
3,534

 
$
3,503

Additions related to current year positions
196

 
198

 
389

Additions related to prior year positions
75

 
53

 
23

Reductions for tax positions of prior years (1) 
(90
)
 
(59
)
 
(156
)
Settlements (1)
(92
)
 
(184
)
 
(161
)
Lapse of statute of limitations
(43
)
 
(94
)
 
(64
)
Balance December 31
$
3,494

 
$
3,448

 
$
3,534

(1) 
Amounts reflect the settlements with the IRS as discussed below.