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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Sales from Products

Sales of the Company’s products were as follows:

			Three Months Ended June 30,																																				Six Months Ended June 30,
			2022																		2021																		2022																		2021
($ 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			$	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
RotaTeq			98						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
Vaqta			16						19						35						22						34						56						45						25						71						47						43						90
Hospital Acute Care
Bridion			237						190						426						197						190						387						432						389						821						364						363						727
Prevymis			47						56						103						37						56						93						87						110						197						72						103						174
Primaxin			—						64						64						—						60						60						1						122						122						—						125						125
Dificid			63						3						66						32						2						34						113						6						119						56						4						61
Noxafil			16						45						60						14						52						66						25						92						118						29						104						133
Invanz			2						45						46						(4)						52						48						2						96						99						—						104						104
Cancidas			2						39						42						1						53						54						4						91						95						3						108						111
Zerbaxa			22						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
Belsomra			19						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
Januvia			301						455						756						284						500						784						626						909						1,535						632						961						1,593
Janumet			105						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 sales			5,726						7,030						12,756						4,647						5,333						9,980						12,498						14,364						26,863						8,941						10,277						19,218
Animal Health:
Livestock			164						662						826						161						659						821						335						1,322						1,658						318						1,322						1,640
Companion Animals			313						328						641						298						353						651						616						676						1,291						578						672						1,250
Total Animal Health segment sales			477						990						1,467						459						1,012						1,472						951						1,998						2,949						896						1,994						2,890
Total segment sales			6,203						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.

Consolidated Sales 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)			2022						2021						2022						2021
United States			$	6,238					$	5,100					$	13,577					$	9,890
Europe, Middle East and Africa			3,582						3,333						7,942						6,569
China			1,372						975						2,515						1,697
Japan			1,114						661						2,103						1,291
Asia Pacific (other than China and Japan)			1,008						594						1,938						1,168
Latin America			642						532						1,249						1,032
Other			637						207						1,170						382
			$	14,593					$	11,402					$	30,494					$	22,029

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)			2022						2021						2022						2021
Segment profits:
Pharmaceutical segment			$	9,173					$	7,257					$	18,673					$	13,845
Animal Health segment			571						552						1,156						1,124
Total segment profits			9,744						7,809						19,829						14,969
Other profits			260						(79)						454						(113)
Unallocated:
Interest income			15						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

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- 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.

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