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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Sales of Company's Products

Sales of the Company’s products were as follows:

Years Ended December 31			2020																		2019																		2018
			U.S.						Int’l						Total						U.S.						Int’l						Total						U.S.						Int’l						Total
Pharmaceutical:
Oncology
Keytruda			$	8,352					$	6,028					$	14,380					$	6,305					$	4,779					$	11,084					$	4,150					$	3,021					$	7,171
Alliance revenue - Lynparza (1)			417						308						725						269						176						444						127						61						187
Alliance revenue - Lenvima (1)			359						220						580						239						165						404						95						54						149
Emend			18						127						145						183						205						388						312						210						522
Vaccines
Gardasil/Gardasil 9			1,755						2,184						3,938						1,831						1,905						3,737						1,873						1,279						3,151
ProQuad/M-M-R II/Varivax			1,378						500						1,878						1,683						592						2,275						1,430						368						1,798
Pneumovax 23			727						359						1,087						679						247						926						627						281						907
RotaTeq			486						311						797						506						284						791						496						232						728
Vaqta			103						67						170						130						108						238						127						112						239
Hospital Acute Care
Bridion			583						615						1,198						533						598						1,131						386						531						917
Noxafil			42						287						329						282						380						662						353						389						742
Prevymis			119						162						281						84						81						165						46						27						72
Primaxin			2						248						251						2						271						273						7						258						265
Cancidas			7						207						213						6						242						249						12						314						326
Invanz			9						202						211						30						233						263						253						243						496
Cubicin			46						106						152						92						165						257						191						176						367
Zerbaxa			74						56						130						63						58						121						42						45						87
Immunology
Simponi			—						838						838						—						830						830						—						893						893
Remicade			—						330						330						—						411						411						—						582						582
Neuroscience
Belsomra			81						247						327						92						214						306						96						164						260
Virology
Isentress/Isentress HD			326						531						857						398						576						975						513						627						1,140
Zepatier			60						107						167						118						252						370						8						447						455
Cardiovascular
Zetia			(1)						483						482						14						575						590						45						813						857
Vytorin			12						171						182						16						269						285						10						487						497
Atozet			—						453						453						—						391						391						—						347						347
Alliance revenue - Adempas (2)			259						22						281						194						10						204						134						5						139
Adempas			—						220						220						—						215						215						—						190						190
Diabetes
Januvia			1,470						1,836						3,306						1,724						1,758						3,482						1,969						1,718						3,686
Janumet			477						1,494						1,971						589						1,452						2,041						811						1,417						2,228
Women’s Health
Implanon/Nexplanon			488						192						680						568						219						787						495						208						703
NuvaRing			110						127						236						742						136						879						722						180						902
Diversified Brands
Singulair			18						444						462						29						669						698						20						688						708
Cozaar/Hyzaar			21						365						386						24						418						442						23						431						453
Arcoxia			—						258						258						—						288						288						—						335						335
Nasonex			12						206						218						9						284						293						23						353						376
Follistim AQ			84						109						193						103						138						241						115						153						268
Other pharmaceutical (3)			1,555						3,152						4,709						1,416						3,204						4,615						1,231						3,308						4,546
Total Pharmaceutical segment sales			19,449						23,572						43,021						18,953						22,798						41,751						16,742						20,947						37,689
Animal Health:
Livestock			612						2,327						2,939						582						2,201						2,784						528						2,102						2,630
Companion Animals			872						892						1,764						724						885						1,609						710						872						1,582
Total Animal Health segment sales			1,484						3,219						4,703						1,306						3,086						4,393						1,238						2,974						4,212
Other segment sales (4)			23						—						23						174						1						175						248						2						250
Total segment sales			20,956						26,791						47,747						20,433						25,885						46,319						18,228						23,923						42,151
Other (5)			71						176						247						86						436						521						118						26						143
			$	21,027					$	26,967					$	47,994					$	20,519					$	26,321					$	46,840					$	18,346					$	23,949					$	42,294

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)     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 4).

(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 non-reportable segments of Healthcare Services (fully divested in the first quarter of 2020) and Alliances (which concluded in 2018).

(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:

Years Ended December 31			2020						2019						2018
United States			$	21,027					$	20,519					$	18,346
Europe, Middle East and Africa			13,600						12,707						12,213
China			3,624						3,207						2,184
Japan			3,376						3,583						3,212
Asia Pacific (other than China and Japan)			2,864						2,943						2,909
Latin America			2,274						2,469						2,415
Other			1,229						1,412						1,015
			$	47,994					$	46,840					$	42,294

Reconciliation of Segment Profits to Income Before Taxes

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

Years Ended December 31			2020						2019						2018
Segment profits:
Pharmaceutical segment			$	29,722					$	28,324					$	24,871
Animal Health segment			1,650						1,609						1,659
Other segments			1						(7)						103
Total segment profits			31,373						29,926						26,633
Other profits			140						363						6
Unallocated:
Interest income			59						274						343
Interest expense			(831)						(893)						(772)
Depreciation and amortization			(1,602)						(1,593)						(1,352)
Research and development			(13,072)						(9,499)						(9,432)
Amortization of purchase accounting adjustments			(1,168)						(1,406)						(2,664)
Restructuring costs			(578)						(638)						(632)
Charge related to the termination of a collaboration with Samsung			—						—						(423)
Other unallocated, net			(5,530)						(5,070)						(3,006)
Income Before Taxes			$	8,791					$	11,464					$	8,701

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, 2020
Included in segment profits:
Equity (income) loss from affiliates			$	6					$	—					$	—					$	6
Depreciation and amortization			690						164						1						855
Year Ended December 31, 2019
Included in segment profits:
Equity (income) loss from affiliates			$	—					$	—					$	—					$	—
Depreciation and amortization			534						109						10						653
Year Ended December 31, 2018
Included in segment profits:
Equity (income) loss from affiliates			$	4					$	—					$	—					$	4
Depreciation and amortization			411						82						10						503

Property, Plant and Equipment, Net by Geographic Area

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

December 31			2020						2019						2018
United States			$	10,526					$	8,974					$	8,306
Europe, Middle East and Africa			6,059						4,767						3,706
Asia Pacific (other than China and Japan)			761						714						684
Latin America			252						266						264
China			217						174						167
Japan			166						152						159
Other			5						6						5
			$	17,986					$	15,053					$	13,291

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