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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Sales from Products

Sales of the Company’s products were as follows:

			Three Months Ended September 30,																																				Nine Months Ended September 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			$	2,580					$	1,954					$	4,534					$	2,157					$	1,559					$	3,715					$	7,108					$	5,501					$	12,609					$	6,106					$	4,281					$	10,387
Alliance revenue - Lynparza (1)			129						117						246						107						89						196						371						350						721						297						223						519
Alliance revenue - Lenvima (1)			114						74						188						82						60						142						287						211						498						270						152						421
Vaccines
Gardasil/Gardasil 9			839						1,154						1,993						579						608						1,187						1,605						2,539						4,144						1,209						1,732						2,941
ProQuad/M-M-R II/Varivax			537						125						661						437						139						576						1,255						371						1,626						1,033						356						1,390
Pneumovax 23			181						97						277						276						99						375						354						247						600						478						270						748
RotaTeq			135						92						227						114						96						210						364						229						593						355						246						601
Vaqta			32						16						48						32						19						51						80						58						138						79						60						139
Hospital Acute Care
Bridion			181						188						369						162						157						320						545						551						1,096						412						431						843
Prevymis			39						57						96						32						46						77						111						159						270						87						113						200
Noxafil			19						45						64						13						66						79						48						149						197						27						220						247
Primaxin			—						69						70						1						73						74						—						194						194						2						187						189
Cancidas			1						56						56						1						49						50						4						164						168						2						147						148
Invanz			(2)						55						53						1						50						51						(2)						159						157						7						152						159
Zerbaxa			(1)						(1)						(2)						20						23						43						(5)						(6)						(11)						57						54						112
Immunology
Simponi			—						203						203						—						209						209						—						619						619						—						615						615
Remicade			—						73						73						—						82						82						—						233						233						—						242						242
Neuroscience
Belsomra			23						58						81						18						63						81						56						183						238						67						177						244
Virology
Isentress/Isentress HD			77						112						189						92						113						205						222						368						590						243						403						646
Cardiovascular
Alliance revenue-Adempas/Verquvo (2)			73						27						100						78						5						83						222						26						248						200						16						216
Adempas			—						59						59						—						55						55						—						188						188						—						167						167
Diabetes
Januvia			365						487						852						342						479						821						997						1,448						2,445						1,110						1,339						2,449
Janumet			86						401						487						105						400						506						244						1,205						1,449						361						1,138						1,499
Other pharmaceutical (3)			262						308						572						193						333						526						745						957						1,704						706						969						1,675
Total Pharmaceutical segment sales			5,670						5,826						11,496						4,842						4,872						9,714						14,611						16,103						30,714						13,108						13,690						26,797
Animal Health:
Livestock			190						675						864						165						593						758						508						1,996						2,503						448						1,697						2,145
Companion Animals			277						276						553						234						228						462						855						948						1,804						676						714						1,390
Total Animal Health segment sales			467						951						1,417						399						821						1,220						1,363						2,944						4,307						1,124						2,411						3,535
Other segment sales (4)			—						—						—						—						—						—						—						—						—						23						—						23
Total segment sales			6,137						6,777						12,913						5,241						5,693						10,934						15,974						19,047						35,021						14,255						16,101						30,355
Other (5)			139						101						241						9						(14)						(5)						192						(30)						162						46						168						215
			$	6,276					$	6,878					$	13,154					$	5,250					$	5,679					$	10,929					$	16,166					$	19,017					$	35,183					$	14,301					$	16,269					$	30,570

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. Other for the three and nine months ended September 30, 2021 also includes $135 million and $185 million, respectively, related to the achievement of milestones for an out-licensed product that triggered contingent payments to Merck.

Consolidated Sales by Geographic Area

Consolidated sales by geographic area where derived are as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions)			2021						2020						2021						2020
United States			$	6,276					$	5,250					$	16,166					$	14,301
Europe, Middle East and Africa			3,342						2,946						9,912						8,537
China			1,307						791						3,004						2,060
Japan			638						671						1,929						1,875
Asia Pacific (other than China and Japan)			613						545						1,782						1,560
Latin America			599						499						1,631						1,374
Other			379						227						759						863
			$	13,154					$	10,929					$	35,183					$	30,570

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 September 30,												Nine Months Ended September 30,
($ in millions)			2021						2020						2021						2020
Segment profits:
Pharmaceutical segment			$	8,606					$	7,026					$	22,450					$	19,235
Animal Health segment			505						459						1,629						1,347
Other segment			—						(1)						—						1
Total segment profits			9,111						7,484						24,079						20,583
Other profits			141						(28)						29						135
Unallocated:
Interest income			7						9						27						48
Interest expense			(196)						(203)						(597)						(624)
Amortization			(360)						(406)						(1,231)						(1,393)
Depreciation			(358)						(367)						(1,031)						(1,105)
Research and development			(2,312)						(3,231)						(8,775)						(7,251)
Restructuring costs			(107)						(113)						(487)						(265)
Other unallocated, net			(660)						(439)						(2,044)						(1,720)
			$	5,266					$	2,706					$	9,970					$	8,408

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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.

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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.

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