Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2018

Sales of the Company’s products were as follows:



	Three Months Ended June 30,														Six Months Ended June 30,
	2018								2017						2018								2017
($ in millions)	U.S.			Int’l			Total		U.S.		Int’l		Total		U.S.			Int’l			Total		U.S.		Int’l		Total
Pharmaceutical:
Oncology
Keytruda	$	959		$	707		$	1,667	$	556	$	325	$	881	$	1,797		$	1,333		$	3,131	$	917	$	547	$	1,465
Emend	89			59			148		83		60		143		168			105			273		169		107		276
Temodar	1			54			56		3		61		65		2			111			113		4		126		130
Alliance revenue - Lynparza	31			13			44		—		—		—		55			22			76		—		—		—
Alliance revenue - Lenvima	—			35			35		—		—		—		—			35			35		—		—		—
Vaccines
Gardasil/Gardasil 9	302			306			608		312		156		469		682			586			1,269		711		290		1,001
ProQuad/M-M-R II/Varivax	356			70			426		341		58		399		668			150			818		639		115		754
Pneumovax 23	122			71			193		104		61		166		234			137			372		219		110		329
RotaTeq	99			57			156		72		51		123		250			99			349		251		96		347
Zostavax	1			43			44		107		52		160		17			91			108		216		97		313
Hospital Acute Care
Bridion	95			145			240		54		109		163		175			269			444		99		211		310
Noxafil	87			100			188		77		78		155		168			195			363		142		154		296
Invanz	87			63			149		93		57		150		177			123			300		175		111		286
Cubicin	48			46			94		53		50		103		95			97			192		107		92		198
Cancidas	4			83			87		6		106		112		7			171			178		11		222		233
Primaxin	—			68			68		1		70		71		5			135			140		2		132		133
Immunology
Simponi	—			233			233		—		199		199		—			464			464		—		383		383
Remicade	—			157			157		—		208		208		—			324			324		—		437		437
Neuroscience
Belsomra	29			42			71		25		28		52		52			73			125		45		49		94
Virology
Isentress/Isentress HD	132			174			305		136		146		282		260			326			586		279		308		587
Zepatier	(10		)	123			113		256		261		517		(10		)	253			243		455		440		895
Cardiovascular
Zetia	8			218			226		122		246		367		25			505			531		233		468		701
Vytorin	3			152			155		30		152		182		11			311			322		120		303		423
Atozet	—			101			101		—		63		63		—			174			174		—		112		112
Adempas	—			75			75		—		67		67		—			143			143		—		151		151
Diabetes
Januvia	503			446			949		541		407		948		968			862			1,829		1,048		740		1,787
Janumet	209			377			585		248		315		563		401			729			1,129		442		617		1,059
Women’s Health
NuvaRing	187			49			236		153		47		199		357			95			452		265		94		359
Implanon/Nexplanon	114			60			174		125		53		178		242			106			348		257		92		349
Diversified Brands
Singulair	5			180			185		6		197		203		11			350			360		12		377		389
Cozaar/Hyzaar	7			118			125		3		116		119		14			231			245		6		226		231
Nasonex	—			81			81		21		64		85		2			201			203		39		185		224
Arcoxia	—			84			84		—		89		89		—			166			166		—		192		192
Follistim AQ	27			43			70		32		47		79		56			81			138		74		86		160
Fosamax	3			56			59		2		65		66		1			113			114		3		124		127
Dulera	35			7			42		63		5		69		85			14			99		139		12		151
Other pharmaceutical ⁽¹⁾	289			765			1,053		304		761		1,064		563			1,483			2,045		611		1,449		2,062
Total Pharmaceutical segment sales	3,822			5,461			9,282		3,929		4,830		8,759		7,538			10,663			18,201		7,690		9,255		16,944
Animal Health:
Livestock	107			526			633		103		479		582		231			1,055			1,286		223		938		1,161
Companion Animals	204			253			457		167		206		373		387			482			869		330		403		733
Total Animal Health segment sales	311			779			1,090		270		685		955		618			1,537			2,155		553		1,341		1,894
Other segment sales ⁽²⁾	56			—			56		101		—		101		140			—			140		194		—		195
Total segment sales	4,189			6,240			10,428		4,300		5,515		9,815		8,296			12,200			20,496		8,437		10,596		19,033
Other ⁽³⁾	54			(18		)	37		8		108		115		80			(74		)	6		66		266		332
	$	4,243		$	6,222		$	10,465	$	4,308	$	5,623	$	9,930	$	8,376		$	12,126		$	20,502	$	8,503	$	10,862	$	19,365


⁽¹⁾	Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.


⁽²⁾	Represents the non-reportable segments of Healthcare Services and Alliances.


⁽³⁾	Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. Other in the first six months of 2018 and 2017 also includes $71 million and $50 million, respectively, related to the sale of the marketing rights to certain products.

Consolidated revenues by geographic area

Consolidated revenues by geographic area where derived are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2018		2017		2018		2017
United States	$	4,243	$	4,308	$	8,376	$	8,503
Europe, Middle East and Africa	3,144		2,804		6,334		5,433
Asia Pacific	1,350		1,056		2,588		2,054
Japan	855		839		1,592		1,544
Latin America	594		583		1,126		1,068
Other	279		340		486		763
	$	10,465	$	9,930	$	20,502	$	19,365

Reconciliation of segment profits to income before taxes

A reconciliation of segment profits to Income before taxes is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2018			2017			2018			2017
Segment profits:
Pharmaceutical segment	$	5,826		$	5,590		$	11,630		$	10,751
Animal Health segment	450			395			864			812
Other segments	26			111			88			144
Total segment profits	6,302			6,096			12,582			11,707
Other profits	(2		)	43			(89		)	186
Unallocated:
Interest income	81			96			165			194
Interest expense	(194		)	(193		)	(379		)	(375		)
Equity income from affiliates	66			5			16			(7		)
Depreciation and amortization	(332		)	(332		)	(682		)	(702		)
Research and development	(2,041		)	(1,560		)	(5,023		)	(3,191		)
Amortization of purchase accounting adjustments	(732		)	(779		)	(1,464		)	(1,557		)
Restructuring costs	(228		)	(166		)	(323		)	(317		)
Other unallocated, net	(834		)	(771		)	(1,371		)	(1,496		)
	$	2,086		$	2,439		$	3,432		$	4,442