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Segment Reporting (Tables)

12 Months Ended

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

X

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