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Segment Reporting (Tables) | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Sales of Company's Products | Sales of the Company’s products were as follows:
Years Ended December 31 | 2018 |  | 2017 |  | 2016
| U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 4,150 |  |  | $ | 3,021 |  |  | $ | 7,171 |  |  | $ | 2,309 |  |  | $ | 1,500 |  |  | $ | 3,809 |  |  | $ | 792 |  |  | $ | 610 |  |  | $ | 1,402 |
Emend | 312 |  |  | 210 |  |  | 522 |  |  | 342 |  |  | 213 |  |  | 556 |  |  | 356 |  |  | 193 |  |  | 549 |
Temodar | 6 |  |  | 209 |  |  | 214 |  |  | 16 |  |  | 256 |  |  | 271 |  |  | 15 |  |  | 268 |  |  | 283 |
Alliance revenue - Lynparza | 127 |  |  | 61 |  |  | 187 |  |  | — |  |  | 20 |  |  | 20 |  |  | — |  |  | — |  |  | — |
Alliance revenue - Lenvima | 95 |  |  | 54 |  |  | 149 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Vaccines (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 1,873 |  |  | 1,279 |  |  | 3,151 |  |  | 1,565 |  |  | 743 |  |  | 2,308 |  |  | 1,780 |  |  | 393 |  |  | 2,173 |
ProQuad/M-M-R II/Varivax | 1,430 |  |  | 368 |  |  | 1,798 |  |  | 1,374 |  |  | 303 |  |  | 1,676 |  |  | 1,362 |  |  | 279 |  |  | 1,640 |
Pneumovax 23 | 627 |  |  | 281 |  |  | 907 |  |  | 581 |  |  | 240 |  |  | 821 |  |  | 447 |  |  | 193 |  |  | 641 |
RotaTeq | 496 |  |  | 232 |  |  | 728 |  |  | 481 |  |  | 204 |  |  | 686 |  |  | 482 |  |  | 169 |  |  | 652 |
Zostavax | 22 |  |  | 195 |  |  | 217 |  |  | 422 |  |  | 246 |  |  | 668 |  |  | 518 |  |  | 168 |  |  | 685 |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 386 |  |  | 531 |  |  | 917 |  |  | 239 |  |  | 465 |  |  | 704 |  |  | 77 |  |  | 405 |  |  | 482 |
Noxafil | 353 |  |  | 389 |  |  | 742 |  |  | 309 |  |  | 327 |  |  | 636 |  |  | 284 |  |  | 312 |  |  | 595 |
Invanz | 253 |  |  | 243 |  |  | 496 |  |  | 361 |  |  | 241 |  |  | 602 |  |  | 329 |  |  | 233 |  |  | 561 |
Cubicin | 191 |  |  | 176 |  |  | 367 |  |  | 189 |  |  | 193 |  |  | 382 |  |  | 906 |  |  | 181 |  |  | 1,087 |
Cancidas | 12 |  |  | 314 |  |  | 326 |  |  | 20 |  |  | 402 |  |  | 422 |  |  | 25 |  |  | 533 |  |  | 558 |
Primaxin | 7 |  |  | 258 |  |  | 265 |  |  | 10 |  |  | 270 |  |  | 280 |  |  | 4 |  |  | 293 |  |  | 297 |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 893 |  |  | 893 |  |  | — |  |  | 819 |  |  | 819 |  |  | — |  |  | 766 |  |  | 766 |
Remicade | — |  |  | 582 |  |  | 582 |  |  | — |  |  | 837 |  |  | 837 |  |  | — |  |  | 1,268 |  |  | 1,268 |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 96 |  |  | 164 |  |  | 260 |  |  | 98 |  |  | 112 |  |  | 210 |  |  | 84 |  |  | 70 |  |  | 154 |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Isentress/Isentress HD | 513 |  |  | 627 |  |  | 1,140 |  |  | 565 |  |  | 639 |  |  | 1,204 |  |  | 721 |  |  | 666 |  |  | 1,387 |
Zepatier | 8 |  |  | 447 |  |  | 455 |  |  | 771 |  |  | 888 |  |  | 1,660 |  |  | 488 |  |  | 67 |  |  | 555 |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Zetia | 45 |  |  | 813 |  |  | 857 |  |  | 352 |  |  | 992 |  |  | 1,344 |  |  | 1,588 |  |  | 972 |  |  | 2,560 |
Vytorin | 10 |  |  | 487 |  |  | 497 |  |  | 124 |  |  | 627 |  |  | 751 |  |  | 473 |  |  | 668 |  |  | 1,141 |
Atozet | — |  |  | 347 |  |  | 347 |  |  | — |  |  | 225 |  |  | 225 |  |  | 1 |  |  | 146 |  |  | 146 |
Adempas | — |  |  | 329 |  |  | 329 |  |  | — |  |  | 300 |  |  | 300 |  |  | — |  |  | 169 |  |  | 169 |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 1,969 |  |  | 1,718 |  |  | 3,686 |  |  | 2,153 |  |  | 1,584 |  |  | 3,737 |  |  | 2,286 |  |  | 1,622 |  |  | 3,908 |
Janumet | 811 |  |  | 1,417 |  |  | 2,228 |  |  | 863 |  |  | 1,296 |  |  | 2,158 |  |  | 984 |  |  | 1,217 |  |  | 2,201 |
Women’s Health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NuvaRing | 722 |  |  | 180 |  |  | 902 |  |  | 564 |  |  | 197 |  |  | 761 |  |  | 576 |  |  | 202 |  |  | 777 |
Implanon/Nexplanon | 495 |  |  | 208 |  |  | 703 |  |  | 496 |  |  | 191 |  |  | 686 |  |  | 420 |  |  | 186 |  |  | 606 |
Diversified Brands |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Singulair | 20 |  |  | 688 |  |  | 708 |  |  | 40 |  |  | 692 |  |  | 732 |  |  | 40 |  |  | 874 |  |  | 915 |
Cozaar/Hyzaar | 23 |  |  | 431 |  |  | 453 |  |  | 18 |  |  | 466 |  |  | 484 |  |  | 16 |  |  | 494 |  |  | 511 |
Nasonex | 23 |  |  | 353 |  |  | 376 |  |  | 54 |  |  | 333 |  |  | 387 |  |  | 184 |  |  | 352 |  |  | 537 |
Arcoxia | — |  |  | 335 |  |  | 335 |  |  | — |  |  | 363 |  |  | 363 |  |  | — |  |  | 450 |  |  | 450 |
Follistim AQ | 115 |  |  | 153 |  |  | 268 |  |  | 123 |  |  | 174 |  |  | 298 |  |  | 157 |  |  | 197 |  |  | 355 |
Dulera | 186 |  |  | 28 |  |  | 214 |  |  | 261 |  |  | 26 |  |  | 287 |  |  | 412 |  |  | 24 |  |  | 436 |
Fosamax | 4 |  |  | 205 |  |  | 209 |  |  | 6 |  |  | 235 |  |  | 241 |  |  | 5 |  |  | 279 |  |  | 284 |
Other pharmaceutical (2) | 1,228 |  |  | 2,855 |  |  | 4,090 |  |  | 1,148 |  |  | 2,917 |  |  | 4,065 |  |  | 1,261 |  |  | 3,158 |  |  | 4,420 |
Total Pharmaceutical segment sales | 16,608 |  |  | 21,081 |  |  | 37,689 |  |  | 15,854 |  |  | 19,536 |  |  | 35,390 |  |  | 17,073 |  |  | 18,077 |  |  | 35,151 |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 528 |  |  | 2,102 |  |  | 2,630 |  |  | 471 |  |  | 2,013 |  |  | 2,484 |  |  | 446 |  |  | 1,841 |  |  | 2,287 |
Companion Animals | 710 |  |  | 872 |  |  | 1,582 |  |  | 619 |  |  | 772 |  |  | 1,391 |  |  | 543 |  |  | 648 |  |  | 1,191 |
Total Animal Health segment sales | 1,238 |  |  | 2,974 |  |  | 4,212 |  |  | 1,090 |  |  | 2,785 |  |  | 3,875 |  |  | 989 |  |  | 2,489 |  |  | 3,478 |
Other segment sales (3) | 248 |  |  | 2 |  |  | 250 |  |  | 396 |  |  | 1 |  |  | 397 |  |  | 385 |  |  | — |  |  | 385 |
Total segment sales | 18,094 |  |  | 24,057 |  |  | 42,151 |  |  | 17,340 |  |  | 22,322 |  |  | 39,662 |  |  | 18,447 |  |  | 20,566 |  |  | 39,014 |
Other (4) | 118 |  |  | 26 |  |  | 143 |  |  | 84 |  |  | 376 |  |  | 460 |  |  | 31 |  |  | 763 |  |  | 793 |
| $ | 18,212 |  |  | $ | 24,083 |  |  | $ | 42,294 |  |  | $ | 17,424 |  |  | $ | 22,698 |  |  | $ | 40,122 |  |  | $ | 18,478 |  |  | $ | 21,329 |  |  | $ | 39,807 |
U.S. plus international may not equal total due to rounding.
(1) | On December 31, 2016, Merck and Sanofi terminated their equally-owned joint venture, SPMSD, which marketed vaccines in most major European markets (see Note 9). Accordingly, vaccine sales in 2018 and 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 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 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 2018, 2017 and 2016 also includes approximately $95 million, $85 million and $170 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:
Years Ended December 31 | 2018 |  | 2017 |  | 2016
United States | $ | 18,212 |  |  | $ | 17,424 |  |  | $ | 18,478 |
Europe, Middle East and Africa | 12,213 |  |  | 11,478 |  |  | 10,953 |
Japan | 3,212 |  |  | 3,122 |  |  | 2,846 |
Asia Pacific (other than Japan and China) | 2,909 |  |  | 2,751 |  |  | 2,483 |
Latin America | 2,415 |  |  | 2,339 |  |  | 2,155 |
China | 2,184 |  |  | 1,586 |  |  | 1,435 |
Other | 1,149 |  |  | 1,422 |  |  | 1,457 |
| $ | 42,294 |  |  | $ | 40,122 |  |  | $ | 39,807 |
Reconciliation of Segment Profits to Income Before Taxes | A reconciliation of segment profits to Income before taxes is as follows:
Years Ended December 31 | 2018 |  | 2017 |  | 2016
Segment profits: |  |  |  |  |
Pharmaceutical segment | $ | 24,292 |  |  | $ | 22,495 |  |  | $ | 22,141 |
Animal Health segment | 1,659 |  |  | 1,552 |  |  | 1,357 |
Other segments | 103 |  |  | 275 |  |  | 146 |
Total segment profits | 26,054 |  |  | 24,322 |  |  | 23,644 |
Other profits | 6 |  |  | 26 |  |  | 481 |
Unallocated: |  |  |  |  |
Interest income | 343 |  |  | 385 |  |  | 328 |
Interest expense | (772 | ) |  | (754 | ) |  | (693 | )
Depreciation and amortization | (1,334 | ) |  | (1,378 | ) |  | (1,585 | )
Research and development | (8,853 | ) |  | (9,481 | ) |  | (9,218 | )
Amortization of purchase accounting adjustments | (2,664 | ) |  | (3,056 | ) |  | (3,692 | )
Restructuring costs | (632 | ) |  | (776 | ) |  | (651 | )
Charge related to termination of collaboration agreement with Samsung | (423 | ) |  | — |  |  | — |
Loss on extinguishment of debt | — |  |  | (191 | ) |  | — |
Gain on sale of certain migraine clinical development programs | — |  |  | — |  |  | 100 |
Charge related to the settlement of worldwide Keytruda patent litigation | — |  |  | — |  |  | (625 | )
Other unallocated, net | (3,024 | ) |  | (2,576 | ) |  | (3,430 | )
| $ | 8,701 |  |  | $ | 6,521 |  |  | $ | 4,659 |
Equity Income from Affiliates and Depreciation and Amortization Included in Segment Profits | Equity (income) loss from affiliates and depreciation and amortization included in segment profits is as follows:
| Pharmaceutical |  | Animal Health |  | All Other |  | Total
Year Ended December 31, 2018 |  |  |  |  |  |  |
Included in segment profits: |  |  |  |  |  |  |
Equity (income) loss from affiliates | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Depreciation and amortization | 243 |  |  | 82 |  |  | 10 |  |  | 335 |
Year Ended December 31, 2017 |  |  |  |  |  |  |
Included in segment profits: |  |  |  |  |  |  |
Equity (income) loss from affiliates | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 7 |
Depreciation and amortization | 125 |  |  | 75 |  |  | 12 |  |  | 212 |
Year Ended December 31, 2016 |  |  |  |  |  |  |
Included in segment profits: |  |  |  |  |  |  |
Equity (income) loss from affiliates | $ | (105 | ) |  | $ | — |  |  | $ | — |  |  | $ | (105 | )
Depreciation and amortization | 160 |  |  | 10 |  |  | 13 |  |  | 183 |
Property, Plant and Equipment, Net by Geographic Area | Property, plant and equipment, net, by geographic area where located is as follows:
December 31 | 2018 |  | 2017 |  | 2016
United States | $ | 8,306 |  |  | $ | 8,070 |  |  | $ | 8,114 |
Europe, Middle East and Africa | 3,706 |  |  | 3,151 |  |  | 2,732 |
Asia Pacific (other than Japan and China) | 684 |  |  | 632 |  |  | 623 |
Latin America | 264 |  |  | 271 |  |  | 234 |
China | 167 |  |  | 150 |  |  | 152 |
Japan | 159 |  |  | 158 |  |  | 164 |
Other | 5 |  |  | 7 |  |  | 7 |
| $ | 13,291 |  |  | $ | 12,439 |  |  | $ | 12,026 |

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