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v3.21.1

Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2021
Segment Reporting [Abstract] |
Sales of Company's products | Sales of the Company’s products were as follows:
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
($ in millions) | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  |  |  |  |  |  |  |  |  |  |  |
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 2,181 |  |  | $ | 1,718 |  |  | $ | 3,899 |  |  | $ | 1,906 |  |  | $ | 1,378 |  |  | $ | 3,284 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue - Lynparza (1) | 118 |  |  | 110 |  |  | 228 |  |  | 85 |  |  | 60 |  |  | 145 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue - Lenvima (1) | 85 |  |  | 44 |  |  | 130 |  |  | 90 |  |  | 38 |  |  | 128 |  |  |  |  |  |  |  |  |  |  |  |  |
Vaccines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 313 |  |  | 604 |  |  | 917 |  |  | 461 |  |  | 636 |  |  | 1,097 |  |  |  |  |  |  |  |  |  |  |  |  |
ProQuad/M-M-R II/Varivax | 333 |  |  | 117 |  |  | 449 |  |  | 333 |  |  | 102 |  |  | 435 |  |  |  |  |  |  |  |  |  |  |  |  |
Pneumovax 23 | 73 |  |  | 99 |  |  | 171 |  |  | 182 |  |  | 75 |  |  | 256 |  |  |  |  |  |  |  |  |  |  |  |  |
RotaTeq | 118 |  |  | 41 |  |  | 158 |  |  | 140 |  |  | 82 |  |  | 222 |  |  |  |  |  |  |  |  |  |  |  |  |
Vaqta | 25 |  |  | 9 |  |  | 34 |  |  | 30 |  |  | 30 |  |  | 60 |  |  |  |  |  |  |  |  |  |  |  |  |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 167 |  |  | 173 |  |  | 340 |  |  | 143 |  |  | 157 |  |  | 299 |  |  |  |  |  |  |  |  |  |  |  |  |
Prevymis | 35 |  |  | 47 |  |  | 82 |  |  | 26 |  |  | 33 |  |  | 60 |  |  |  |  |  |  |  |  |  |  |  |  |
Noxafil | 15 |  |  | 52 |  |  | 67 |  |  | 8 |  |  | 87 |  |  | 94 |  |  |  |  |  |  |  |  |  |  |  |  |
Primaxin | — |  |  | 65 |  |  | 65 |  |  | — |  |  | 51 |  |  | 51 |  |  |  |  |  |  |  |  |  |  |  |  |
Cancidas | 3 |  |  | 55 |  |  | 57 |  |  | 3 |  |  | 52 |  |  | 55 |  |  |  |  |  |  |  |  |  |  |  |  |
Invanz | 4 |  |  | 52 |  |  | 57 |  |  | 6 |  |  | 59 |  |  | 64 |  |  |  |  |  |  |  |  |  |  |  |  |
Zerbaxa | (2) |  |  | (6) |  |  | (8) |  |  | 20 |  |  | 16 |  |  | 37 |  |  |  |  |  |  |  |  |  |  |  |  |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 214 |  |  | 214 |  |  | — |  |  | 215 |  |  | 215 |  |  |  |  |  |  |  |  |  |  |  |  |
Remicade | — |  |  | 85 |  |  | 85 |  |  | — |  |  | 88 |  |  | 88 |  |  |  |  |  |  |  |  |  |  |  |  |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 18 |  |  | 61 |  |  | 79 |  |  | 27 |  |  | 53 |  |  | 79 |  |  |  |  |  |  |  |  |  |  |  |  |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Isentress/Isentress HD | 71 |  |  | 138 |  |  | 209 |  |  | 75 |  |  | 170 |  |  | 245 |  |  |  |  |  |  |  |  |  |  |  |  |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Zetia | 2 |  |  | 90 |  |  | 92 |  |  | (2) |  |  | 147 |  |  | 145 |  |  |  |  |  |  |  |  |  |  |  |  |
Vytorin | 2 |  |  | 38 |  |  | 41 |  |  | 3 |  |  | 50 |  |  | 53 |  |  |  |  |  |  |  |  |  |  |  |  |
Atozet | — |  |  | 112 |  |  | 112 |  |  | — |  |  | 122 |  |  | 122 |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue - Adempas (2) | 68 |  |  | 6 |  |  | 74 |  |  | 49 |  |  | 5 |  |  | 53 |  |  |  |  |  |  |  |  |  |  |  |  |
Adempas | — |  |  | 55 |  |  | 55 |  |  | — |  |  | 56 |  |  | 56 |  |  |  |  |  |  |  |  |  |  |  |  |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 348 |  |  | 461 |  |  | 809 |  |  | 355 |  |  | 419 |  |  | 774 |  |  |  |  |  |  |  |  |  |  |  |  |
Janumet | 84 |  |  | 401 |  |  | 486 |  |  | 113 |  |  | 390 |  |  | 503 |  |  |  |  |  |  |  |  |  |  |  |  |
Women’s Health |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Implanon/Nexplanon | 141 |  |  | 42 |  |  | 183 |  |  | 149 |  |  | 45 |  |  | 195 |  |  |  |  |  |  |  |  |  |  |  |  |
NuvaRing | 21 |  |  | 24 |  |  | 45 |  |  | 26 |  |  | 37 |  |  | 63 |  |  |  |  |  |  |  |  |  |  |  |  |
Diversified Brands |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Singulair | 4 |  |  | 102 |  |  | 107 |  |  | 5 |  |  | 151 |  |  | 155 |  |  |  |  |  |  |  |  |  |  |  |  |
Cozaar/Hyzaar | 3 |  |  | 87 |  |  | 90 |  |  | 7 |  |  | 95 |  |  | 102 |  |  |  |  |  |  |  |  |  |  |  |  |
Arcoxia | — |  |  | 56 |  |  | 56 |  |  | — |  |  | 70 |  |  | 70 |  |  |  |  |  |  |  |  |  |  |  |  |
Follistim AQ | 25 |  |  | 27 |  |  | 52 |  |  | 21 |  |  | 21 |  |  | 41 |  |  |  |  |  |  |  |  |  |  |  |  |
Nasonex | 2 |  |  | 41 |  |  | 43 |  |  | 6 |  |  | 65 |  |  | 71 |  |  |  |  |  |  |  |  |  |  |  |  |
Other pharmaceutical (3) | 384 |  |  | 814 |  |  | 1,197 |  |  | 447 |  |  | 886 |  |  | 1,338 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Pharmaceutical segment sales | 4,641 |  |  | 6,034 |  |  | 10,675 |  |  | 4,714 |  |  | 5,941 |  |  | 10,655 |  |  |  |  |  |  |  |  |  |  |  |  |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 157 |  |  | 662 |  |  | 819 |  |  | 162 |  |  | 577 |  |  | 739 |  |  |  |  |  |  |  |  |  |  |  |  |
Companion Animals | 280 |  |  | 319 |  |  | 599 |  |  | 222 |  |  | 253 |  |  | 475 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Animal Health segment sales | 437 |  |  | 981 |  |  | 1,418 |  |  | 384 |  |  | 830 |  |  | 1,214 |  |  |  |  |  |  |  |  |  |  |  |  |
Other segment sales (4) | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | 23 |  |  |  |  |  |  |  |  |  |  |  |  |
Total segment sales | 5,078 |  |  | 7,015 |  |  | 12,093 |  |  | 5,121 |  |  | 6,771 |  |  | 11,892 |  |  |  |  |  |  |  |  |  |  |  |  |
Other (5) | 58 |  |  | (72) |  |  | (13) |  |  | 16 |  |  | 149 |  |  | 165 |  |  |  |  |  |  |  |  |  |  |  |  |
| $ | 5,136 |  |  | $ | 6,943 |  |  | $ | 12,080 |  |  | $ | 5,137 |  |  | $ | 6,920 |  |  | $ | 12,057 |  |  |  |  |  |  |  |  |  |  |  |  |
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 fully divested in the first quarter of 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) | 2021 |  | 2020 |  |  |  |
United States | $ | 5,136 |  |  | $ | 5,137 |  |  |  |  |
Europe, Middle East and Africa | 3,729 |  |  | 3,534 |  |  |  |  |
China | 927 |  |  | 864 |  |  |  |  |
Asia Pacific (other than China and Japan) | 751 |  |  | 728 |  |  |  |  |
Japan | 730 |  |  | 811 |  |  |  |  |
Latin America | 569 |  |  | 556 |  |  |  |  |
Other | 238 |  |  | 427 |  |  |  |  |
| $ | 12,080 |  |  | $ | 12,057 |  |  |  |  |
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) | 2021 |  | 2020 |  |  |  |
Segment profits: |  |  |  |  |  |  |
Pharmaceutical segment | $ | 7,555 |  |  | $ | 7,582 |  |  |  |  |
Animal Health segment | 572 |  |  | 479 |  |  |  |  |
Other segment | — |  |  | 1 |  |  |  |  |
Total segment profits | 8,127 |  |  | 8,062 |  |  |  |  |
Other profits | (34) |  |  | 139 |  |  |  |  |
Unallocated: |  |  |  |  |  |  |
Interest income | 11 |  |  | 25 |  |  |  |  |
Interest expense | (200) |  |  | (212) |  |  |  |  |
Amortization | (534) |  |  | (410) |  |  |  |  |
Depreciation | (358) |  |  | (377) |  |  |  |  |
Research and development | (2,358) |  |  | (2,097) |  |  |  |  |
Restructuring costs | (298) |  |  | (72) |  |  |  |  |
Other unallocated, net | (894) |  |  | (1,220) |  |  |  |  |
| $ | 3,462 |  |  | $ | 3,838 |  |  |  |  |

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