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Segment Reporting
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s operations are principally managed on a product basis and include two operating segments, which are the Pharmaceutical and Animal Health segments, both of which are reportable segments.
The Pharmaceutical segment includes human health pharmaceutical and vaccine products. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. Human health vaccine products consist of preventive pediatric, adolescent and adult vaccines. The Company sells these human health vaccines primarily to physicians, wholesalers, physician distributors and government entities. A large component of pediatric and adolescent vaccine sales are made to the U.S. Centers for Disease Control and Prevention Vaccines for Children program, which is funded by the U.S. government. Additionally, the Company sells vaccines to the Federal government for placement into vaccine stockpiles.
The Animal Health segment discovers, develops, manufactures and markets a wide range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all major livestock and companion animal species. The Company also offers an extensive suite of digitally connected identification, traceability and monitoring products. The Company sells its products to veterinarians, distributors and animal producers.
Sales of the Company’s products were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
 ($ in millions)U.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotalU.S.Int’lTotal
Pharmaceutical:
Oncology
Keytruda$3,197 $2,055 $5,252 $2,347 $1,829 $4,176 $5,976 $4,085 $10,061 $4,528 $3,548 $8,076 
Alliance revenue-Lynparza (1)
143 132 275 124 124 248 283 257 541 242 233 475 
Alliance revenue-Lenvima (1)
128 103 231 88 93 181 284 175 459 173 137 310 
Alliance revenue-Reblozyl (2)
28 5 33 — — — 55 30 86 — — — 
Vaccines
Gardasil/Gardasil 9
428 1,245 1,674 454 781 1,234 846 2,287 3,133 766 1,385 2,151 
ProQuad/M-M-R II/Varivax
434 143 578 386 130 516 805 243 1,047 718 246 965 
RotaTeq98 75 173 111 97 208 273 116 389 229 137 366 
Pneumovax 23
94 59 153 100 52 152 212 114 325 173 150 323 
Vaqta16 19 35 22 34 56 45 25 71 47 43 90 
Hospital Acute Care
Bridion237 190 426 197 190 387 432 389 821 364 363 727 
Prevymis47 56 103 37 56 93 87 110 197 72 103 174 
Primaxin— 64 64 — 60 60 1 122 122 — 125 125 
Dificid63 3 66 32 2 34 113 6 119 56 4 61 
Noxafil16 45 60 14 52 66 25 92 118 29 104 133 
Invanz2 45 46 (4)52 48 2 96 99 — 104 104 
Cancidas2 39 42 1 53 54 4 91 95 3 108 111 
Zerbaxa22 24 46 (2)1 (1)40 36 76 (4)(5)(9)
Cardiovascular
Alliance revenue-Adempas/Verquvo (3)
88 10 98 81 (7)74 159 11 170 149 — 149 
Adempas— 63 63 — 74 74 — 124 124 — 129 129 
Virology
Lagevrio— 1,177 1,177 — — — 1,523 2,901 4,424 — — — 
Isentress/Isentress HD
67 80 147 74 118 192 128 177 305 145 256 401 
Neuroscience
Belsomra19 50 69 14 63 78 39 98 137 32 125 157 
Immunology
Simponi— 181 181 — 202 202 — 366 366 — 416 416 
Remicade— 53 53 — 75 75 — 114 114 — 160 160 
Diabetes
Januvia301 455 756 284 500 784 626 909 1,535 632 961 1,593 
Janumet105 371 476 74 403 477 168 762 931 158 805 962 
Other pharmaceutical (4)
191 288 479 213 299 512 372 628 998 429 640 1,069 
Total Pharmaceutical segment sales5,726 7,030 12,756 4,647 5,333 9,980 12,498 14,364 26,863 8,941 10,277 19,218 
Animal Health:
Livestock164 662 826 161 659 821 335 1,322 1,658 318 1,322 1,640 
Companion Animals313 328 641 298 353 651 616 676 1,291 578 672 1,250 
Total Animal Health segment sales477 990 1,467 459 1,012 1,472 951 1,998 2,949 896 1,994 2,890 
Total segment sales6,203 8,020 14,223 5,106 6,345 11,452 13,449 16,362 29,812 9,837 12,271 22,108 
Other (5)
35 335 370 (6)(44)(50)128 555 682 53 (132)(79)
 $6,238 $8,355 $14,593 $5,100 $6,301 $11,402 $13,577 $16,917 $30,494 $9,890 $12,139 $22,029 
U.S. plus international may not equal total due to rounding.
(1)    Alliance revenue for Lynparza and Lenvima represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 4).
(2)    Alliance revenue for Reblozyl represents royalties and, for the year-to-date period, a payment received related to the achievement of a regulatory milestone (see Note 4).
(3)    Alliance revenue for Adempas/Verquvo 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).
(4)    Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.
(5)    Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales (including sales to Organon). Other for the six months ended June 30, 2022 and 2021 also includes $146 million and $56 million, respectively, related to upfront and contingent milestone payments received by Merck for out-licensing arrangements.
Product sales are recorded net of the provision for discounts, including chargebacks, which are customer discounts that occur when a contracted customer purchases through an intermediary wholesale purchaser, and rebates that are owed based upon definitive contractual agreements or legal requirements with private sector and public sector (Medicaid and Medicare Part D) benefit providers, after the final dispensing of the product by a pharmacy to a benefit plan participant. These discounts, in the aggregate, reduced U.S. sales by $3.0 billion and $3.1 billion for the three months ended June 30, 2022 and 2021, respectively, and $5.9 billion and $6.0 billion for the six months ended June 30, 2022 and 2021, respectively.
Consolidated sales by geographic area where derived are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2022202120222021
United States$6,238 $5,100 $13,577 $9,890 
Europe, Middle East and Africa3,582 3,333 7,942 6,569 
China1,372 975 2,515 1,697 
Japan1,114 661 2,103 1,291 
Asia Pacific (other than China and Japan)1,008 594 1,938 1,168 
Latin America642 532 1,249 1,032 
Other637 207 1,170 382 
 $14,593 $11,402 $30,494 $22,029 
A reconciliation of segment profits to Income from Continuing Operations Before Taxes is as follows:
 Three Months Ended
June 30,		Six Months Ended
June 30,
($ in millions)2022202120222021
Segment profits:
Pharmaceutical segment$9,173 $7,257 $18,673 $13,845 
Animal Health segment571 552 1,156 1,124 
Total segment profits9,744 7,809 19,829 14,969 
Other profits260 (79)454 (113)
Unallocated:
Interest income15 9 22 20 
Interest expense(240)(202)(483)(401)
Amortization(463)(357)(1,163)(871)
Depreciation(431)(332)(809)(673)
Research and development(2,652)(4,175)(5,097)(6,480)
Restructuring costs(142)(82)(194)(380)
Other unallocated, net(1,604)(874)(3,211)(1,367)
 $4,487 $1,717 $9,348 $4,704 
Pharmaceutical segment profits are comprised of segment sales less standard costs, as well as selling, general and administrative expenses directly incurred by the segment. Animal Health segment profits are comprised of segment sales, less all cost of sales, as well as selling, general and administrative expenses and research and development costs directly incurred by the segment. For internal management reporting presented to the chief operating decision maker, Merck does not allocate the remaining cost of sales not included in segment profits as described above, research and development expenses incurred in Merck Research Laboratories, the Company’s research and development division that focuses on human health-related activities, or general and administrative expenses, nor the cost of financing these activities. Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits. In addition, costs related to restructuring activities, as well as the amortization of intangible assets and purchase accounting adjustments are not allocated to segments.
Other profits are primarily comprised of miscellaneous corporate profits, as well as operating profits related to third-party manufacturing sales.
Other unallocated, net, includes expenses from corporate and manufacturing cost centers, goodwill and other intangible asset impairment charges, gains or losses on sales of businesses, expense or income related to changes in the estimated fair value measurement of liabilities for contingent consideration, and other miscellaneous income or expense items.