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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Sales of Company's Products

Sales of the Company’s products were as follows:

Years Ended December 31	2019												2018												2017
	U.S.				Int’l				Total				U.S.				Int’l				Total				U.S.				Int’l				Total
Pharmaceutical:
Oncology
Keytruda	$	6,305			$	4,779			$	11,084			$	4,150			$	3,021			$	7,171			$	2,309			$	1,500			$	3,809
Alliance revenue - Lynparza (1)	269				176				444				127				61				187				—				20				20
Alliance revenue - Lenvima (1)	239				165				404				95				54				149				—				—				—
Emend	183				205				388				312				210				522				342				213				556
Vaccines
Gardasil/Gardasil 9	1,831				1,905				3,737				1,873				1,279				3,151				1,565				743				2,308
ProQuad/M-M-R II/Varivax	1,683				592				2,275				1,430				368				1,798				1,374				303				1,676
Pneumovax 23	679				247				926				627				281				907				581				240				821
RotaTeq	506				284				791				496				232				728				481				204				686
Vaqta	130				108				238				127				112				239				94				124				218
Hospital Acute Care
Bridion	533				598				1,131				386				531				917				239				465				704
Noxafil	282				380				662				353				389				742				309				327				636
Primaxin	2				271				273				7				258				265				10				270				280
Invanz	30				233				263				253				243				496				361				241				602
Cubicin	92				165				257				191				176				367				189				193				382
Cancidas	6				242				249				12				314				326				20				402				422
Immunology
Simponi	—				830				830				—				893				893				—				819				819
Remicade	—				411				411				—				582				582				—				837				837
Neuroscience
Belsomra	92				214				306				96				164				260				98				112				210
Virology
Isentress/Isentress HD	398				576				975				513				627				1,140				565				639				1,204
Zepatier	118				252				370				8				447				455				771				888				1,660
Cardiovascular
Zetia	14				575				590				45				813				857				352				992				1,344
Vytorin	16				269				285				10				487				497				124				627				751
Atozet	—				391				391				—				347				347				—				225				225
Adempas	—				419				419				—				329				329				—				300				300
Diabetes
Januvia	1,724				1,758				3,482				1,969				1,718				3,686				2,153				1,584				3,737
Janumet	589				1,452				2,041				811				1,417				2,228				863				1,296				2,158
Women’s Health
NuvaRing	742				136				879				722				180				902				564				197				761
Implanon/Nexplanon	568				219				787				495				208				703				496				191				686
Diversified Brands
Singulair	29				669				698				20				688				708				40				692				732
Cozaar/Hyzaar	24				418				442				23				431				453				18				466				484
Nasonex	9				284				293				23				353				376				54				333				387
Arcoxia	—				288				288				—				335				335				—				363				363
Follistim AQ	103				138				241				115				153				268				123				174				298
Other pharmaceutical (2)	1,563				3,343				4,901				1,319				3,380				4,705				1,759				3,556				5,314
Total Pharmaceutical segment sales	18,759				22,992				41,751				16,608				21,081				37,689				15,854				19,536				35,390
Animal Health:
Livestock	582				2,201				2,784				528				2,102				2,630				471				2,013				2,484
Companion Animals	724				885				1,609				710				872				1,582				619				772				1,391
Total Animal Health segment sales	1,306				3,086				4,393				1,238				2,974				4,212				1,090				2,785				3,875
Other segment sales (3)	174				1				175				248				2				250				396				1				397
Total segment sales	20,239				26,079				46,319				18,094				24,057				42,151				17,340				22,322				39,662
Other (4)	86				436				521				118				26				143				84				376				460
	$	20,325			$	26,515			$	46,840			$	18,212			$	24,083			$	42,294			$	17,424			$	22,698			$	40,122

U.S. plus international may not equal total due to rounding.

⁽¹⁾  Alliance revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 4).

⁽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 2019, 2018 and 2017 also includes approximately $80 million, $95 million and $85 million, respectively, related to the sale of the marketing rights to certain products.

Consolidated Revenues by Geographic Area

Consolidated sales by geographic area where derived are as follows:

Years Ended December 31	2019				2018				2017
United States	$	20,325			$	18,212			$	17,424
Europe, Middle East and Africa	12,707				12,213				11,478
Japan	3,583				3,212				3,122
China	3,207				2,184				1,586
Asia Pacific (other than Japan and China)	2,943				2,909				2,751
Latin America	2,469				2,415				2,339
Other	1,606				1,149				1,422
	$	46,840			$	42,294			$	40,122

Reconciliation of Segment Profits to Income Before Taxes

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

Years Ended December 31	2019				2018				2017
Segment profits:
Pharmaceutical segment	$	28,324			$	24,871			$	23,018
Animal Health segment	1,609				1,659				1,552
Other segments	(7		)		103				275
Total segment profits	29,926				26,633				24,845
Other profits	363				6				26
Unallocated:
Interest income	274				343				385
Interest expense	(893		)		(772		)		(754		)
Depreciation and amortization	(1,573		)		(1,334		)		(1,378		)
Research and development	(9,499		)		(9,432		)		(10,004		)
Amortization of purchase accounting adjustments	(1,419		)		(2,664		)		(3,056		)
Restructuring costs	(638		)		(632		)		(776		)
Charge related to the termination of a collaboration with Samsung	—				(423		)		—
Loss on extinguishment of debt	—				—				(191		)
Other unallocated, net	(5,077		)		(3,024		)		(2,576		)
Income Before Taxes	$	11,464			$	8,701			$	6,521

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, 2019
Included in segment profits:
Equity (income) loss from affiliates	$	—			$	—			$	—			$	—
Depreciation and amortization	137				109				10				256
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

Property, Plant and Equipment, Net by Geographic Area

Property, plant and equipment, net, by geographic area where located is as follows:

December 31	2019				2018				2017
United States	$	8,974			$	8,306			$	8,070
Europe, Middle East and Africa	4,767				3,706				3,151
Asia Pacific (other than Japan and China)	714				684				632
Latin America	266				264				271
China	174				167				150
Japan	152				159				158
Other	6				5				7
	$	15,053			$	13,291			$	12,439

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