Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2020

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