Table of Contents Patents, Trademarks and Licenses Patent protection is considered, in the aggregate, to be of material importance in the Company’s marketing of its products in the United States and in most major foreign markets.
Patents may cover products per se, pharmaceutical formulations, processes for or intermediates useful in the manufacture of products or the uses of products.
Protection for individual products extends for varying periods in accordance with the legal life of patents in the various countries.
The protection afforded, which may also vary from country to country, depends upon the type of patent and its scope of coverage.
The Food and Drug Administration Modernization Act includes a Pediatric Exclusivity Provision that may provide an additional six months of market exclusivity in the United States for indications of new or currently marketed drugs if certain agreed upon pediatric studies are completed by the applicant.
Current U. S.  patent law provides additional patent term under Patent Term Restoration for periods when the patented product was under regulatory review by the FDA.
Patent portfolios developed for products introduced by the Company normally provide market exclusivity.
The Company has the following key U. S.  patent protection (including Patent Term Restoration and Pediatric Exclusivity) for major marketed products:
## Table 0 ##
(1) Compound patent unless otherwise noted.
Certain of the products listed may be the subject of patent litigation.
See Item 8.
“Financial Statements and Supplementary Data,” Note 10.
“Contingencies and Environmental Liabilities” below.
(2) By agreement, Apotex, a generic manufacturer, has been granted rights under Merck’s Nasonex use patent in the United States.
In addition, a district court decision (upheld on appeal to the Court of Appeals for the Federal Circuit) found that Apotex’s proposed generic product would not infringe on Merck’s Nasonex formulation patent.
Thus, if Apotex’s application is approved by the FDA, it can enter the market in the United States with a generic version of Nasonex.
(3) By agreement, a generic manufacturer may launch a generic version of Zetia in the United States in December 2016.
While the expiration of a product patent normally results in a loss of market exclusivity for the covered pharmaceutical product, commercial benefits may continue to be derived from: (i) later-granted patents on processes and intermediates related to the most economical method of manufacture of the active ingredient of such product; (ii) patents relating to the use of such product; (iii) patents relating to novel compositions and formulations; and (iv) in the United States and certain other countries, market exclusivity that may be available under relevant law.
The effect of product patent expiration on pharmaceutical products also depends upon many other factors such as the nature of the market and the position of the product in it, the growth of the market, the complexities and economics of the process for manufacture of the active ingredient of the product and the requirements of new drug provisions of the Federal Food, Drug and Cosmetic Act or similar laws and regulations in other countries.
Obligations and Funded Status Summarized information about the changes in plan assets and benefit obligation, the funded status and the amounts recorded at December 31 is as follows:
## Table 1 ##
The fair value of U. S.  pension plan assets included in the preceding table was $10.0 billion and $8.7 billion at December 31, 2013 and 2012, respectively, and the projected benefit obligation of U. S.  pension plans was $8.7 billion and $10.0 billion, respectively.
Approximately 46% and 44% of the Company’s pension projected benefit obligation at December 31, 2013 and 2012, respectively, relates to international defined benefit plans, of which each individual plan is not significant relative to the total projected benefit obligation.
At December 31, 2013 and 2012, the accumulated benefit obligation was $14.8 billion and $15.9 billion, respectively, for all pension plans, of which $8.0 billion and $9.0 billion, respectively, related to U. S.  pension plans.
For pension plans with projected benefit obligations in excess of plan assets at December 31, 2013 and 2012, the fair value of plan assets was $1.5 billion and $12.8 billion, respectively, and the benefit obligations were $3.0 billion and $15.5 billion, respectively.
For those plans with accumulated benefit obligations in excess of plan assets at December 31, 2013 and 2012, the fair value of plan assets was $1.4 billion and $6.1 billion, respectively, and the accumulated benefit obligations were $2.5 billion and $7.7 billion, respectively.
Table of Contents PART I Item 1.  Business.
Merck & Co. , Inc.  (“Merck” or the “Company”) is a global health care company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures.
The Company’s operations are principally managed on a products basis and are comprised of four operating segments, which are the Pharmaceutical, Animal Health, Consumer Care and Alliances segments, and one reportable segment, which is the Pharmaceutical segment.
The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures.
Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders.
The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions.
Vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices.
The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities.
The Company also has animal health operations that discover, develop, manufacture and market animal health products, including vaccines, which the Company sells to veterinarians, distributors and animal producers.
Additionally, the Company has consumer care operations that develop, manufacture and market over-thecounter, foot care and sun care products, which are sold through wholesale and retail drug, food chain and mass merchandiser outlets, as well as club stores and specialty channels.
The Company was incorporated in New Jersey in 1970.
For financial information and other information about the Company’s segments, see Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 8.
“Financial Statements and Supplementary Data” below.
All product or service marks appearing in type form different from that of the surrounding text are trademarks or service marks owned, licensed to, promoted or distributed by Merck, its subsidiaries or affiliates, except as noted.
All other trademarks or services marks are those of their respective owners.
Product Sales Sales of the Company’s top pharmaceutical products, as well as total sales of animal health and consumer care products, were as follows:
## Table 2 ##
(1) Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third-party manufacturing sales.
On October 1, 2013, the Company divested a substantial portion of its third-party manufacturing sales.
Table of Contents Costs, Expenses and Other
## Table 3 ##
* 100% or greater.
(1) Includes $279 million, $200 million and $587 million of IPR&D impairment charges in 2013, 2012 and 2011, respectively.
Materials and Production Materials and production costs were $17.0 billion in 2013, $16.4 billion in 2012 and $16.9 billion in 2011.
Costs include expenses for the amortization of intangible assets recorded in connection with mergers and acquisitions which totaled $4.7 billion in 2013 and $4.9 billion in each of 2012 and 2011.
Additionally, expenses in 2011 include $89 million of amortization of purchase accounting adjustments to Schering-Plough’s inventories recognized as a result of the Merger.
Costs in 2013 and 2011 include intangible asset impairment charges of $486 million and $118 million, respectively.
The impairment charges in 2013 related to changes in cash flow assumptions for currently marked products Saphris/Sycrest and Rebetol (see “Pharmaceutical Segment” above).
The Company may recognize additional non-cash impairment charges in the future related to product intangibles that were measured at fair value and capitalized in connection with mergers and acquisitions and such charges could be material.
Additionally, costs in 2013 include a $41 million intangible asset impairment charge related to a licensing agreement.
Also included in materials and production were costs associated with restructuring activities which amounted to $446 million, $188 million and $348 million in 2013, 2012 and 2011, respectively, including accelerated depreciation and asset write-offs related to the planned sale or closure of manufacturing facilities.
Separation costs associated with manufacturing-related headcount reductions have been incurred and are reflected in Restructuring costs as discussed below.
Gross margin was 61.5% in 2013 compared with 65.2% in 2012 and 64.9% in 2011.
The amortization of intangible assets and purchase accounting adjustments to inventories, as well as the restructuring and impairment charges noted above reduced gross margin by 12.8 percentage points in 2013, 10.7 percentage points in 2012 and 11.4 percentage points in 2011.
Excluding these impacts, the gross margin decline in 2013 as compared with 2012 was driven in part by the loss of Singulair sales as result of patent expiries in the United States in August 2012 and in major European markets in February 2013.
In addition, generic competition in the United States for Maxalt, Temodar, Clarinex and Propecia coupled with changes in product mix and continued pricing pressures in mature markets also negatively affected gross margin in 2013.
The gross margin decline in 2012 as compared with 2011 reflects the significant decline in Singulair sales as a result of the loss of U. S.  market exclusivity, partially offset by improvements resulting from other changes in product mix.
The Company anticipates that gross margin will continue to be negatively affected by the ongoing impacts of recent patent expiries and additional patent expiries that will occur in 2014.
Marketing and Administrative Marketing and administrative expenses declined 7% in 2013 to $11.9 billion and decreased 7% in 2012 to $12.8 billion largely due to lower promotional spending and selling costs resulting from restructuring activities, and also reflecting the favorable effect of foreign exchange.
Expenses for 2013, 2012 and 2011 include restructuring costs of $145 million, $90 million and $119 million, respectively, related primarily to accelerated depreciation for facilities to be closed or divested.
Separation costs associated with sales force reductions have been incurred and are reflected in Restructuring costs as discussed below.
Expenses also include $94 million, $272 million and $278 million of acquisition-related costs in 2013, 2012 and 2011, respectively, consisting of incremental, third-party integration costs related to the Merger, including costs related to legal entity and system integration.
Acquisition-related costs for 2011 also consist of severance costs associated with the acquisition of Inspire Pharmaceuticals, Inc. , which are not part of the Company’s formal restructuring programs.

<table><tr><td>Product</td><td>Year of Expiration (in the U.S.)<sup>(1)</sup></td></tr><tr><td>Asmanex</td><td>2014 (use)/2018 (formulation)</td></tr><tr><td>Dulera</td><td>2014 (use)/2017(formulation)/2020 (combination)</td></tr><tr><td>Integrilin</td><td>2014 (compound)/2015 (use/formulation)</td></tr><tr><td>Nasonex<sup>-2</sup></td><td>2014 (use/formulation)/2018(formulation)</td></tr><tr><td>Emend</td><td>2015</td></tr><tr><td>Follistim AQ</td><td>2015</td></tr><tr><td>PegIntron</td><td>2015 (conjugates)/2020 (Mature IFN-alpha)</td></tr><tr><td>Invanz</td><td>2016 (compound)/2017 (composition)</td></tr><tr><td>Zostavax</td><td>2016 (use)</td></tr><tr><td>Zetia<sup>-3</sup>/Vytorin/Liptruzet</td><td>2017</td></tr><tr><td>NuvaRing</td><td>2018 (delivery system)</td></tr><tr><td>Emendfor Injection</td><td>2019</td></tr><tr><td>Noxafil</td><td>2019</td></tr><tr><td>RotaTeq</td><td>2019</td></tr><tr><td>Intron A</td><td>2020</td></tr><tr><td>Recombivax</td><td>2020 (method of making/vectors)</td></tr><tr><td>Januvia/Janumet/Janumet XR</td><td>2022 (compound)/2026 (salt)</td></tr><tr><td>Zioptan</td><td>2022 (with pending Patent Term Restoration)</td></tr><tr><td>Isentress</td><td>2023</td></tr><tr><td>Victrelis</td><td>2024 (with pending Patent Term Restoration)</td></tr><tr><td>Gardasil</td><td>2028</td></tr></table>
<table><tr><td></td><td colspan="2">Pension Benefits</td><td colspan="2">OtherPostretirementBenefits</td></tr><tr><td></td><td>2013</td><td>2012</td><td>2013</td><td>2012</td></tr><tr><td>Fair value of plan assets January 1</td><td>$15,349</td><td>$12,481</td><td>$1,760</td><td>$1,628</td></tr><tr><td>Actual return on plan assets</td><td>2,524</td><td>1,739</td><td>199</td><td>200</td></tr><tr><td>Company contributions</td><td>645</td><td>1,853</td><td>73</td><td>48</td></tr><tr><td>Effects of exchange rate changes</td><td>-84</td><td>3</td><td>—</td><td>—</td></tr><tr><td>Benefits paid</td><td>-780</td><td>-673</td><td>-119</td><td>-115</td></tr><tr><td>Settlements</td><td>-236</td><td>-75</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>17</td><td>21</td><td>—</td><td>-1</td></tr><tr><td>Fair value of plan assets December 31</td><td>$17,435</td><td>$15,349</td><td>$1,913</td><td>$1,760</td></tr><tr><td>Benefit obligation January 1</td><td>17,646</td><td>14,416</td><td>2,650</td><td>2,529</td></tr><tr><td>Service cost</td><td>682</td><td>555</td><td>102</td><td>82</td></tr><tr><td>Interest cost</td><td>665</td><td>661</td><td>107</td><td>121</td></tr><tr><td>Actuarial (gains) losses</td><td>-1,689</td><td>2,660</td><td>-428</td><td>88</td></tr><tr><td>Benefits paid</td><td>-780</td><td>-673</td><td>-119</td><td>-115</td></tr><tr><td>Effects of exchange rate changes</td><td>-21</td><td>67</td><td>-5</td><td>—</td></tr><tr><td>Plan amendments</td><td>-225</td><td>2</td><td>-38</td><td>-86</td></tr><tr><td>Curtailments</td><td>-61</td><td>-17</td><td>—</td><td>1</td></tr><tr><td>Termination benefits</td><td>58</td><td>27</td><td>50</td><td>18</td></tr><tr><td>Settlements</td><td>-236</td><td>-75</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>16</td><td>23</td><td>10</td><td>12</td></tr><tr><td>Benefit obligation December 31</td><td>$16,055</td><td>$17,646</td><td>$2,329</td><td>$2,650</td></tr><tr><td>Funded status December 31</td><td>$1,380</td><td>$-2,297</td><td>$-416</td><td>$-890</td></tr><tr><td>Recognized as:</td><td></td><td></td><td></td><td></td></tr><tr><td>Other assets</td><td>$2,811</td><td>$355</td><td>$—</td><td>$506</td></tr><tr><td>Accrued and other current liabilities</td><td>-53</td><td>-50</td><td>-8</td><td>-9</td></tr><tr><td>Other noncurrent liabilities</td><td>-1,378</td><td>-2,602</td><td>-408</td><td>-1,387</td></tr></table>
<table><tr><td>($ in millions)</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Total Sales</td><td>$44,033</td><td>$47,267</td><td>$48,047</td></tr><tr><td>Pharmaceutical</td><td>37,437</td><td>40,601</td><td>41,289</td></tr><tr><td>Januvia</td><td>4,004</td><td>4,086</td><td>3,324</td></tr><tr><td>Zetia</td><td>2,658</td><td>2,567</td><td>2,428</td></tr><tr><td>Remicade</td><td>2,271</td><td>2,076</td><td>2,667</td></tr><tr><td>Gardasil</td><td>1,831</td><td>1,631</td><td>1,209</td></tr><tr><td>Janumet</td><td>1,829</td><td>1,659</td><td>1,363</td></tr><tr><td>Isentress</td><td>1,643</td><td>1,515</td><td>1,359</td></tr><tr><td>Vytorin</td><td>1,643</td><td>1,747</td><td>1,882</td></tr><tr><td>Nasonex</td><td>1,335</td><td>1,268</td><td>1,286</td></tr><tr><td>ProQuad/M-M-RII/Varivax</td><td>1,306</td><td>1,273</td><td>1,202</td></tr><tr><td>Singulair</td><td>1,196</td><td>3,853</td><td>5,479</td></tr><tr><td>Animal Health</td><td>3,362</td><td>3,399</td><td>3,253</td></tr><tr><td>Consumer Care</td><td>1,894</td><td>1,952</td><td>1,840</td></tr><tr><td>Other Revenues<sup>-1</sup></td><td>1,340</td><td>1,315</td><td>1,665</td></tr></table>
<table><tr><td>($ in millions)</td><td>2013</td><td>Change</td><td>2012</td><td>Change</td><td>2011</td></tr><tr><td>Materials and production</td><td>$16,954</td><td>3%</td><td>$16,446</td><td>-3%</td><td>$16,871</td></tr><tr><td>Marketing and administrative</td><td>11,911</td><td>-7%</td><td>12,776</td><td>-7%</td><td>13,733</td></tr><tr><td>Research and development<sup>-1</sup></td><td>7,503</td><td>-8%</td><td>8,168</td><td>-4%</td><td>8,467</td></tr><tr><td>Restructuring costs</td><td>1,709</td><td>*</td><td>664</td><td>-49%</td><td>1,306</td></tr><tr><td>Equity income from affiliates</td><td>-404</td><td>-37%</td><td>-642</td><td>5%</td><td>-610</td></tr><tr><td>Other (income) expense, net</td><td>815</td><td>-27%</td><td>1,116</td><td>18%</td><td>946</td></tr><tr><td></td><td>$38,488</td><td>—%</td><td>$38,528</td><td>-5%</td><td>$40,713</td></tr></table>

Question: What was the average of the Actual return on plan assets in the years where Fair value of plan assets January 1 is positive?