Equity

9 Months Ended

Sep. 30, 2012

Equity

11. Equity

											Accumulated
					Other						Other								Non-
	Common Stock				Paid-In			Retained			Comprehensive			Treasury Stock					Controlling
($ and shares in millions)	Shares		Par Value		Capital			Earnings			Loss			Shares			Cost		Interests			Total
Balance January 1, 2011		3,577	$	1,788	$	40,701		$	37,536		$	(3,216	)		495		$	(22,433)	$	2,429		$	56,805
Net income attributable to Merck & Co., Inc.		-		-		-			4,760			-			-			-		-			4,760
Cash dividends declared on common stock		-		-		-			(3,533	)		-			-			-		-			(3,533)
Treasury stock shares purchased		-		-		-			-			-			41			(1,359)		-			(1,359)
Share-based compensation plans and other		-		-		16			-			-			(11	)		377		-			393
Other comprehensive income		-		-		-			-			503			-			-		-			503
Net income attributable to noncontrolling interests		-		-		-			-			-			-			-		89			89
Distributions attributable to noncontrolling interests		-		-		-			-			-			-			-		(62	)		(62)
Balance September 30, 2011		3,577	$	1,788	$	40,717		$	38,763		$	(2,713	)		525		$	(23,415)	$	2,456		$	57,596
Balance January 1, 2012		3,577	$	1,788	$	40,663		$	38,990		$	(3,132	)		536		$	(23,792)	$	2,426		$	56,943
Net income attributable to Merck & Co., Inc.		-		-		-			5,261			-			-			-		-			5,261
Cash dividends declared on common stock		-		-		-			(3,861	)		-			-			-		-			(3,861)
Treasury stock shares purchased		-		-		-			-			-			36			(1,439)		-			(1,439)
Share-based compensation plans and other		-		-		(192	)		-			-			(39	)		1,369		-			1,177
Other comprehensive income		-		-		-			-			92			-			-		-			92
Net income attributable to noncontrolling interests		-		-		-			-			-			-			-		89			89
Distributions attributable to noncontrolling interests		-		-		-			-			-			-			-		(50	)		(50)
Balance September 30, 2012		3,577	$	1,788	$	40,471		$	40,390		$	(3,040	)		533		$	(23,862)	$	2,465		$	58,212

In connection with the 1998 restructuring of Astra Merck Inc., the Company assumed $2.4 billion par value preferred stock with a dividend rate of 5% per annum, which is carried by KBI and included in Noncontrolling interests on the Consolidated Balance Sheet. If AstraZeneca exercises its option to acquire Merck’s interest in AZLP (see Note 8), this preferred stock obligation will be retired.

The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows:

($ in millions)	Derivatives		Investments		Employee Benefit Plans		Cumulative Translation    Adjustment		Accumulated  Other  Comprehensive  Loss
Balance January 1, 2011	$	41	$	31	$	(2,043)	$	(1,245)	$	(3,216)
Other comprehensive (loss) income		(77)		(11)		59		532		503
Balance at September 30, 2011	$	(36)	$	20	$	(1,984)	$	(713)	$	(2,713)
Balance January 1, 2012	$	4	$	21	$	(2,346)	$	(811)	$	(3,132)
Other comprehensive (loss) income		(99)		62		45		84		92
Balance at September 30, 2012	$	(95)	$	83	$	(2,301)	$	(727)	$	(3,040)

Included in cumulative translation adjustment are pretax gains of approximately $393 million for the first nine months of 2011 relating to translation impacts of intangible assets recorded in conjunction with the Merger.