XML 47 R36.htm IDEA: XBRL DOCUMENT
v3.21.2

Segment Reporting (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2021
Segment Reporting [Abstract] |
Sales of Company's products | Sales of the Company’s products were as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
($ in millions) | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 2,347 |  |  | $ | 1,829 |  |  | $ | 4,176 |  |  | $ | 2,043 |  |  | $ | 1,345 |  |  | $ | 3,388 |  |  | $ | 4,528 |  |  | $ | 3,548 |  |  | $ | 8,076 |  |  | $ | 3,949 |  |  | $ | 2,722 |  |  | $ | 6,672 |
Alliance revenue - Lynparza (1) | 124 |  |  | 124 |  |  | 248 |  |  | 105 |  |  | 73 |  |  | 178 |  |  | 242 |  |  | 233 |  |  | 475 |  |  | 190 |  |  | 133 |  |  | 323 |
Alliance revenue - Lenvima (1) | 88 |  |  | 93 |  |  | 181 |  |  | 98 |  |  | 53 |  |  | 151 |  |  | 173 |  |  | 137 |  |  | 310 |  |  | 188 |  |  | 91 |  |  | 279 |
Vaccines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 454 |  |  | 781 |  |  | 1,234 |  |  | 168 |  |  | 488 |  |  | 656 |  |  | 766 |  |  | 1,385 |  |  | 2,151 |  |  | 629 |  |  | 1,124 |  |  | 1,753 |
ProQuad/M-M-R II/Varivax | 386 |  |  | 130 |  |  | 516 |  |  | 263 |  |  | 115 |  |  | 378 |  |  | 718 |  |  | 246 |  |  | 965 |  |  | 596 |  |  | 217 |  |  | 813 |
RotaTeq | 111 |  |  | 97 |  |  | 208 |  |  | 100 |  |  | 68 |  |  | 168 |  |  | 229 |  |  | 137 |  |  | 366 |  |  | 241 |  |  | 150 |  |  | 391 |
Pneumovax 23 | 100 |  |  | 52 |  |  | 152 |  |  | 21 |  |  | 96 |  |  | 117 |  |  | 173 |  |  | 150 |  |  | 323 |  |  | 203 |  |  | 170 |  |  | 373 |
Vaqta | 22 |  |  | 34 |  |  | 56 |  |  | 17 |  |  | 11 |  |  | 28 |  |  | 47 |  |  | 43 |  |  | 90 |  |  | 47 |  |  | 41 |  |  | 88 |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 197 |  |  | 190 |  |  | 387 |  |  | 107 |  |  | 117 |  |  | 224 |  |  | 364 |  |  | 363 |  |  | 727 |  |  | 250 |  |  | 274 |  |  | 524 |
Prevymis | 37 |  |  | 56 |  |  | 93 |  |  | 28 |  |  | 35 |  |  | 63 |  |  | 72 |  |  | 103 |  |  | 174 |  |  | 55 |  |  | 68 |  |  | 123 |
Noxafil | 14 |  |  | 52 |  |  | 66 |  |  | 6 |  |  | 67 |  |  | 73 |  |  | 29 |  |  | 104 |  |  | 133 |  |  | 14 |  |  | 154 |  |  | 168 |
Primaxin | — |  |  | 60 |  |  | 60 |  |  | 1 |  |  | 63 |  |  | 64 |  |  | — |  |  | 125 |  |  | 125 |  |  | 1 |  |  | 114 |  |  | 115 |
Cancidas | 1 |  |  | 53 |  |  | 54 |  |  | (2) |  |  | 45 |  |  | 43 |  |  | 3 |  |  | 108 |  |  | 111 |  |  | 1 |  |  | 98 |  |  | 98 |
Invanz | (4) |  |  | 52 |  |  | 48 |  |  | — |  |  | 43 |  |  | 43 |  |  | — |  |  | 104 |  |  | 104 |  |  | 6 |  |  | 102 |  |  | 108 |
Zerbaxa | (2) |  |  | 1 |  |  | (1) |  |  | 17 |  |  | 15 |  |  | 32 |  |  | (4) |  |  | (5) |  |  | (9) |  |  | 37 |  |  | 32 |  |  | 69 |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 202 |  |  | 202 |  |  | — |  |  | 191 |  |  | 191 |  |  | — |  |  | 416 |  |  | 416 |  |  | — |  |  | 406 |  |  | 406 |
Remicade | — |  |  | 75 |  |  | 75 |  |  | — |  |  | 73 |  |  | 73 |  |  | — |  |  | 160 |  |  | 160 |  |  | — |  |  | 160 |  |  | 160 |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 14 |  |  | 63 |  |  | 78 |  |  | 22 |  |  | 61 |  |  | 84 |  |  | 32 |  |  | 125 |  |  | 157 |  |  | 49 |  |  | 114 |  |  | 163 |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Isentress/Isentress HD | 74 |  |  | 118 |  |  | 192 |  |  | 76 |  |  | 120 |  |  | 196 |  |  | 145 |  |  | 256 |  |  | 401 |  |  | 151 |  |  | 290 |  |  | 441 |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue-Adempas/Verquvo (2) | 81 |  |  | (7) |  |  | 74 |  |  | 73 |  |  | 6 |  |  | 79 |  |  | 149 |  |  | — |  |  | 149 |  |  | 122 |  |  | 11 |  |  | 133 |
Adempas | — |  |  | 74 |  |  | 74 |  |  | — |  |  | 57 |  |  | 57 |  |  | — |  |  | 129 |  |  | 129 |  |  | — |  |  | 113 |  |  | 113 |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 284 |  |  | 500 |  |  | 784 |  |  | 413 |  |  | 441 |  |  | 854 |  |  | 632 |  |  | 961 |  |  | 1,593 |  |  | 768 |  |  | 860 |  |  | 1,628 |
Janumet | 74 |  |  | 403 |  |  | 477 |  |  | 143 |  |  | 348 |  |  | 490 |  |  | 158 |  |  | 805 |  |  | 962 |  |  | 256 |  |  | 737 |  |  | 993 |
Other pharmaceutical (3) | 245 |  |  | 301 |  |  | 546 |  |  | 259 |  |  | 289 |  |  | 548 |  |  | 485 |  |  | 644 |  |  | 1,130 |  |  | 513 |  |  | 637 |  |  | 1,149 |
Total Pharmaceutical segment sales | 4,647 |  |  | 5,333 |  |  | 9,980 |  |  | 3,958 |  |  | 4,220 |  |  | 8,178 |  |  | 8,941 |  |  | 10,277 |  |  | 19,218 |  |  | 8,266 |  |  | 8,818 |  |  | 17,083 |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 161 |  |  | 659 |  |  | 821 |  |  | 122 |  |  | 526 |  |  | 648 |  |  | 318 |  |  | 1,322 |  |  | 1,640 |  |  | 284 |  |  | 1,102 |  |  | 1,386 |
Companion Animals | 298 |  |  | 353 |  |  | 651 |  |  | 220 |  |  | 233 |  |  | 453 |  |  | 578 |  |  | 672 |  |  | 1,250 |  |  | 442 |  |  | 486 |  |  | 928 |
Total Animal Health segment sales | 459 |  |  | 1,012 |  |  | 1,472 |  |  | 342 |  |  | 759 |  |  | 1,101 |  |  | 896 |  |  | 1,994 |  |  | 2,890 |  |  | 726 |  |  | 1,588 |  |  | 2,314 |
Other segment sales (4) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | — |  |  | 23 |
Total segment sales | 5,106 |  |  | 6,345 |  |  | 11,452 |  |  | 4,300 |  |  | 4,979 |  |  | 9,279 |  |  | 9,837 |  |  | 12,271 |  |  | 22,108 |  |  | 9,015 |  |  | 10,406 |  |  | 19,420 |
Other (5) | (6) |  |  | (44) |  |  | (50) |  |  | 22 |  |  | 52 |  |  | 74 |  |  | 53 |  |  | (132) |  |  | (79) |  |  | 38 |  |  | 182 |  |  | 221 |
| $ | 5,100 |  |  | $ | 6,301 |  |  | $ | 11,402 |  |  | $ | 4,322 |  |  | $ | 5,031 |  |  | $ | 9,353 |  |  | $ | 9,890 |  |  | $ | 12,139 |  |  | $ | 22,029 |  |  | $ | 9,053 |  |  | $ | 10,588 |  |  | $ | 19,641 |
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 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 June 30, |  | Six Months Ended June 30,
($ in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
United States | $ | 5,100 |  |  | $ | 4,322 |  |  | $ | 9,890 |  |  | $ | 9,053 |
Europe, Middle East and Africa | 3,333 |  |  | 2,622 |  |  | 6,569 |  |  | 5,591 |
China | 975 |  |  | 623 |  |  | 1,697 |  |  | 1,269 |
Japan | 661 |  |  | 621 |  |  | 1,291 |  |  | 1,204 |
Asia Pacific (other than China and Japan) | 594 |  |  | 489 |  |  | 1,168 |  |  | 1,015 |
Latin America | 532 |  |  | 423 |  |  | 1,032 |  |  | 875 |
Other | 207 |  |  | 253 |  |  | 382 |  |  | 634 |
| $ | 11,402 |  |  | $ | 9,353 |  |  | $ | 22,029 |  |  | $ | 19,641 |
Reconciliation of segment profits to income before taxes | A reconciliation of segment profits to Income from Continuing Operations Before Taxes is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
($ in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Segment profits: |  |  |  |  |  |  |
Pharmaceutical segment | $ | 7,257 |  |  | $ | 5,832 |  |  | $ | 13,845 |  |  | $ | 12,209 |
Animal Health segment | 552 |  |  | 408 |  |  | 1,124 |  |  | 887 |
Other segment | — |  |  | — |  |  | — |  |  | 2 |
Total segment profits | 7,809 |  |  | 6,240 |  |  | 14,969 |  |  | 13,098 |
Other profits | (79) |  |  | 43 |  |  | (113) |  |  | 163 |
Unallocated: |  |  |  |  |  |  |
Interest income | 9 |  |  | 14 |  |  | 20 |  |  | 39 |
Interest expense | (202) |  |  | (209) |  |  | (401) |  |  | (421) |
Amortization | (357) |  |  | (599) |  |  | (871) |  |  | (988) |
Depreciation | (332) |  |  | (367) |  |  | (673) |  |  | (733) |
Research and development | (4,175) |  |  | (1,956) |  |  | (6,480) |  |  | (4,020) |
Restructuring costs | (82) |  |  | (82) |  |  | (380) |  |  | (152) |
Other unallocated, net | (874) |  |  | (343) |  |  | (1,367) |  |  | (1,284) |
| $ | 1,717 |  |  | $ | 2,741 |  |  | $ | 4,704 |  |  | $ | 5,702 |

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 + Details
Name: | us-gaap_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 + Details
Name: | us-gaap_ScheduleOfRevenueFromExternalCustomersAttributedToForeignCountriesByGeographicAreaTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration