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v3.20.1

Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
Sales of Company's products | Sales of the Company’s products were as follows:
| Three Months Ended March 31,
| 2020 |  | 2019
($ in millions) | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 1,906 |  |  | $ | 1,378 |  |  | $ | 3,284 |  |  | $ | 1,284 |  |  | $ | 985 |  |  | $ | 2,269 |
Alliance revenue - Lynparza (1) | 85 |  |  | 60 |  |  | 145 |  |  | 50 |  |  | 29 |  |  | 79 |
Alliance revenue - Lenvima (1) | 90 |  |  | 38 |  |  | 128 |  |  | 50 |  |  | 24 |  |  | 74 |
Emend | 5 |  |  | 38 |  |  | 43 |  |  | 63 |  |  | 53 |  |  | 117 |
Vaccines |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 461 |  |  | 636 |  |  | 1,097 |  |  | 362 |  |  | 476 |  |  | 838 |
ProQuad/M-M-R II/Varivax | 333 |  |  | 102 |  |  | 435 |  |  | 343 |  |  | 153 |  |  | 496 |
Pneumovax 23 | 182 |  |  | 75 |  |  | 256 |  |  | 125 |  |  | 59 |  |  | 185 |
RotaTeq | 140 |  |  | 82 |  |  | 222 |  |  | 154 |  |  | 57 |  |  | 211 |
Vaqta | 30 |  |  | 30 |  |  | 60 |  |  | 29 |  |  | 18 |  |  | 47 |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |
Bridion | 143 |  |  | 157 |  |  | 299 |  |  | 119 |  |  | 136 |  |  | 255 |
Noxafil | 8 |  |  | 87 |  |  | 94 |  |  | 91 |  |  | 99 |  |  | 190 |
Invanz | 6 |  |  | 59 |  |  | 64 |  |  | 14 |  |  | 58 |  |  | 72 |
Prevymis | 26 |  |  | 33 |  |  | 60 |  |  | 18 |  |  | 14 |  |  | 32 |
Cancidas | 3 |  |  | 52 |  |  | 55 |  |  | 1 |  |  | 60 |  |  | 61 |
Primaxin | — |  |  | 51 |  |  | 51 |  |  | — |  |  | 59 |  |  | 59 |
Cubicin | 15 |  |  | 31 |  |  | 46 |  |  | 42 |  |  | 46 |  |  | 88 |
Zerbaxa | 20 |  |  | 16 |  |  | 37 |  |  | 12 |  |  | 14 |  |  | 26 |
Immunology |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 215 |  |  | 215 |  |  | — |  |  | 208 |  |  | 208 |
Remicade | — |  |  | 88 |  |  | 88 |  |  | — |  |  | 123 |  |  | 123 |
Neuroscience |  |  |  |  |  |  |  |  |  |  |
Belsomra | 27 |  |  | 53 |  |  | 79 |  |  | 24 |  |  | 44 |  |  | 67 |
Virology |  |  |  |  |  |  |  |  |  |  |
Isentress/Isentress HD | 75 |  |  | 170 |  |  | 245 |  |  | 108 |  |  | 147 |  |  | 255 |
Zepatier | 18 |  |  | 37 |  |  | 55 |  |  | 33 |  |  | 81 |  |  | 114 |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |
Zetia | (2 | ) |  | 147 |  |  | 145 |  |  | — |  |  | 140 |  |  | 140 |
Vytorin | 3 |  |  | 50 |  |  | 53 |  |  | 3 |  |  | 94 |  |  | 97 |
Atozet | — |  |  | 122 |  |  | 122 |  |  | — |  |  | 94 |  |  | 94 |
Adempas | — |  |  | 56 |  |  | 56 |  |  | — |  |  | 48 |  |  | 48 |
Alliance revenue - Adempas (2) | 49 |  |  | 5 |  |  | 53 |  |  | 40 |  |  | 2 |  |  | 42 |
Diabetes |  |  |  |  |  |  |  |  |  |  |
Januvia | 355 |  |  | 419 |  |  | 774 |  |  | 384 |  |  | 440 |  |  | 824 |
Janumet | 113 |  |  | 390 |  |  | 503 |  |  | 167 |  |  | 364 |  |  | 530 |
Women’s Health |  |  |  |  |  |  |  |  |  |  |
Implanon/Nexplanon | 149 |  |  | 45 |  |  | 195 |  |  | 149 |  |  | 50 |  |  | 199 |
NuvaRing | 26 |  |  | 37 |  |  | 63 |  |  | 185 |  |  | 34 |  |  | 219 |
Diversified Brands |  |  |  |  |  |  |  |  |  |  |
Singulair | 5 |  |  | 151 |  |  | 155 |  |  | 5 |  |  | 186 |  |  | 191 |
Cozaar/Hyzaar | 7 |  |  | 95 |  |  | 102 |  |  | 4 |  |  | 99 |  |  | 103 |
Nasonex | 6 |  |  | 65 |  |  | 71 |  |  | (1 | ) |  | 97 |  |  | 96 |
Arcoxia | — |  |  | 70 |  |  | 70 |  |  | — |  |  | 75 |  |  | 75 |
Follistim AQ | 21 |  |  | 21 |  |  | 41 |  |  | 29 |  |  | 28 |  |  | 57 |
Other pharmaceutical (3) | 409 |  |  | 780 |  |  | 1,194 |  |  | 328 |  |  | 754 |  |  | 1,082 |
Total Pharmaceutical segment sales | 4,714 |  |  | 5,941 |  |  | 10,655 |  |  | 4,215 |  |  | 5,448 |  |  | 9,663 |
Animal Health: |  |  |  |  |  |  |  |  |  |  |
Livestock | 162 |  |  | 577 |  |  | 739 |  |  | 117 |  |  | 494 |  |  | 611 |
Companion Animals | 222 |  |  | 253 |  |  | 475 |  |  | 177 |  |  | 237 |  |  | 414 |
Total Animal Health segment sales | 384 |  |  | 830 |  |  | 1,214 |  |  | 294 |  |  | 731 |  |  | 1,025 |
Other segment sales (4) | 23 |  |  | — |  |  | 23 |  |  | 39 |  |  | — |  |  | 39 |
Total segment sales | 5,121 |  |  | 6,771 |  |  | 11,892 |  |  | 4,548 |  |  | 6,179 |  |  | 10,727 |
Other (5) | 16 |  |  | 149 |  |  | 165 |  |  | 7 |  |  | 82 |  |  | 89 |
| $ | 5,137 |  |  | $ | 6,920 |  |  | $ | 12,057 |  |  | $ | 4,555 |  |  | $ | 6,261 |  |  | $ | 10,816 |
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 3).
(2) | Alliance revenue represents Merck’s share of profits from sales in Bayer’s marketing territories, which are product sales net of cost of sales and commercialization costs (see Note 3).
(3) | Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(4) | Represents sales for the Healthcare Services segment. All the businesses in the Healthcare Services segment were divested as of March 31, 2020.
(5) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales.
Consolidated revenues by geographic area | Consolidated sales by geographic area where derived are as follows:
| Three Months Ended March 31,
($ in millions) | 2020 |  | 2019
United States | $ | 5,137 |  |  | $ | 4,555 |
Europe, Middle East and Africa | 3,534 |  |  | 3,103 |
China | 864 |  |  | 746 |
Japan | 811 |  |  | 799 |
Asia Pacific (other than China and Japan) | 728 |  |  | 745 |
Latin America | 556 |  |  | 561 |
Other | 427 |  |  | 307 |
| $ | 12,057 |  |  | $ | 10,816 |
Reconciliation of segment profits to income before taxes | A reconciliation of segment profits to Income before taxes is as follows:
| Three Months Ended March 31,
($ in millions) | 2020 |  | 2019
Segment profits: |  |  |
Pharmaceutical segment | $ | 7,477 |  |  | $ | 6,574 |
Animal Health segment | 478 |  |  | 415 |
Other segment | 1 |  |  | 2 |
Total segment profits | 7,956 |  |  | 6,991 |
Other profits | 139 |  |  | 30 |
Unallocated: |  |  |
Interest income | 25 |  |  | 89 |
Interest expense | (212 | ) |  | (209 | )
Depreciation and amortization | (381 | ) |  | (359 | )
Research and development | (2,097 | ) |  | (1,843 | )
Amortization of purchase accounting adjustments | (295 | ) |  | (397 | )
Restructuring costs | (72 | ) |  | (153 | )
Other unallocated, net | (1,225 | ) |  | (1,082 | )
| $ | 3,838 |  |  | $ | 3,067 |

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