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Segment Reporting | 3 Months Ended
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Mar. 31, 2017
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company’s operations are principally managed on a products basis and include the Pharmaceutical, Animal Health, Healthcare Services and Alliances operating segments. The Animal Health, Healthcare Services and Alliances segments are not material for separate reporting. The Pharmaceutical segment includes human health pharmaceutical and vaccine products. 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. A large component of pediatric and adolescent vaccine sales are made to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles. Sales of vaccines in most major European markets were marketed through the Company’s SPMSD joint venture until its termination on December 31, 2016. 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. The Company’s Healthcare Services segment provides services and solutions that focus on engagement, health analytics and clinical services to improve the value of care delivered to patients. Sales of the Company’s products were as follows:
| Three Months Ended March 31,
($ in millions) | 2017 |  | 2016
Primary Care and Women’s Health |  |  |
Cardiovascular |  |  |
Zetia | $ | 334 |  |  | $ | 612 |
Vytorin | 241 |  |  | 277 |
Liptruzet | 49 |  |  | 23 |
Adempas | 84 |  |  | 33 |
Diabetes |  |  |
Januvia | 839 |  |  | 906 |
Janumet | 496 |  |  | 506 |
General Medicine and Women’s Health |  |  |
Implanon/Nexplanon | 170 |  |  | 134 |
NuvaRing | 160 |  |  | 175 |
Follistim AQ | 81 |  |  | 94 |
Hospital and Specialty |  |  |
Hepatitis |  |  |
Zepatier | 378 |  |  | 50 |
HIV |  |  |
Isentress | 305 |  |  | 340 |
Hospital Acute Care |  |  |
Bridion | 148 |  |  | 90 |
Noxafil | 141 |  |  | 145 |
Invanz | 136 |  |  | 114 |
Cancidas | 121 |  |  | 133 |
Cubicin | 96 |  |  | 292 |
Primaxin | 62 |  |  | 73 |
Immunology |  |  |
Remicade | 229 |  |  | 349 |
Simponi | 184 |  |  | 188 |
Oncology |  |  |
Keytruda | 584 |  |  | 249 |
Emend | 133 |  |  | 126 |
Temodar | 66 |  |  | 66 |
Diversified Brands |  |  |
Respiratory |  |  |
Singulair | 186 |  |  | 237 |
Nasonex | 139 |  |  | 229 |
Dulera | 82 |  |  | 113 |
Other |  |  |
Cozaar/Hyzaar | 112 |  |  | 126 |
Arcoxia | 103 |  |  | 111 |
Fosamax | 61 |  |  | 75 |
Vaccines (1) |  |  |
Gardasil/Gardasil 9 | 532 |  |  | 378 |
ProQuad/M-M-R II/Varivax | 355 |  |  | 357 |
RotaTeq | 224 |  |  | 188 |
Pneumovax 23 | 163 |  |  | 107 |
Zostavax | 154 |  |  | 125 |
Other pharmaceutical (2) | 1,037 |  |  | 1,083 |
Total Pharmaceutical segment sales | 8,185 |  |  | 8,104 |
Other segment sales (3) | 1,033 |  |  | 905 |
Total segment sales | 9,218 |  |  | 9,009 |
Other (4) | 216 |  |  | 303 |
| $ | 9,434 |  |  | $ | 9,312 |
(1) | On December 31, 2016, Merck and Sanofi Pasteur terminated their equally-owned joint venture, SPMSD, which marketed vaccines in most major European markets. Accordingly, vaccine sales in 2017 include sales in the European markets that were previously part of SPMSD. Amounts for 2016 do not include sales of vaccines sold through SPMSD, the results of which are reflected in equity income from affiliates which is included in Other (income) expense, net. Amounts for 2016 do, however, include supply sales to SPMSD.
(2) | Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(3) | Represents the non-reportable segments of Animal Health, Healthcare Services and Alliances.
(4) | Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. Other in the first quarter of 2017 and 2016 also includes $50 million and $75 million, respectively, related to the sale of the marketing rights to certain products.
A reconciliation of segment profits to Income before taxes is as follows:
| Three Months Ended March 31,
($ in millions) | 2017 |  | 2016
Segment profits: |  |  |
Pharmaceutical segment | $ | 5,180 |  |  | $ | 5,117 |
Other segments | 452 |  |  | 355 |
Total segment profits | 5,632 |  |  | 5,472 |
Other profits | 142 |  |  | 227 |
Unallocated: |  |  |
Interest income | 97 |  |  | 79 |
Interest expense | (182 | ) |  | (172 | )
Equity income from affiliates | (12 | ) |  | 20 |
Depreciation and amortization | (370 | ) |  | (428 | )
Research and development | (1,599 | ) |  | (1,373 | )
Amortization of purchase accounting adjustments | (778 | ) |  | (1,133 | )
Restructuring costs | (151 | ) |  | (91 | )
Other unallocated, net | (776 | ) |  | (977 | )
| $ | 2,003 |  |  | $ | 1,624 |
Segment profits are comprised of segment sales less standard costs and certain operating expenses directly incurred by the segments. For internal management reporting presented to the chief operating decision maker, Merck does not allocate materials and production costs, other than standard costs, the majority of research and development expenses or general and administrative expenses, nor the cost of financing these activities. Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits. In addition, costs related to restructuring activities, as well as the amortization of purchase accounting adjustments are not allocated to segments. Other profits are primarily comprised of miscellaneous corporate profits, as well as operating profits related to third-party manufacturing sales. Other unallocated, net includes expenses from corporate and manufacturing cost centers, goodwill and intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value of contingent consideration, and other miscellaneous income or expense items.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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