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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

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,
			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			$	3,331					$	2,095					$	5,426					$	2,580					$	1,954					$	4,534					$	9,307					$	6,180					$	15,487					$	7,108					$	5,501					$	12,609
Alliance revenue-Lynparza (1)			144						140						284						129						117						246						427						397						825						371						350						721
Alliance revenue-Lenvima (1)			142						60						202						114						74						188						426						235						660						287						211						498
Alliance revenue-Reblozyl (2)			32						7						39						—						—						—						87						37						124						—						—						—
Vaccines
Gardasil/Gardasil 9			957						1,337						2,294						839						1,154						1,993						1,803						3,624						5,428						1,605						2,539						4,144
ProQuad/M-M-R II/Varivax			532						136						668						537						125						661						1,337						379						1,716						1,255						371						1,626
RotaTeq			154						102						256						135						92						227						427						218						644						364						229						593
Pneumovax 23			68						63						131						181						97						277						280						177						457						354						247						600
Vaqta			27						36						64						32						16						48						72						62						134						80						58						138
Hospital Acute Care
Bridion			233						190						423						181						188						369						665						579						1,244						545						551						1,096
Prevymis			49						64						114						39						57						96						136						174						310						111						159						270
Dificid			72						6						77						52						2						54						184						12						196						108						7						115
Primaxin			—						63						63						—						69						70						1						185						185						—						194						194
Noxafil			13						49						62						19						45						64						39						141						180						48						149						197
Invanz			2						48						50						(2)						55						53						4						144						148						(2)						159						157
Cancidas			1						42						43						1						56						56						5						133						138						4						164						168
Zerbaxa			24						19						43						(1)						(1)						(2)						64						55						120						(5)						(6)						(11)
Cardiovascular
Alliance revenue-Adempas/Verquvo (3)			85						3						88						73						27						100						244						14						258						222						26						248
Adempas			—						57						57						—						59						59						—						181						181						—						188						188
Virology
Lagevrio			—						436						436						—						—						—						1,523						3,336						4,859						—						—						—
Isentress/Isentress HD			68						93						161						77						112						189						196						270						466						222						368						590
Neuroscience
Belsomra			20						42						62						23						58						81						60						139						199						56						183						238
Immunology
Simponi			—						173						173						—						203						203						—						540						540						—						619						619
Remicade			—						49						49						—						73						73						—						163						163						—						233						233
Diabetes
Januvia			332						385						717						365						487						852						958						1,294						2,252						997						1,448						2,445
Janumet			90						327						417						86						401						487						258						1,089						1,347						244						1,205						1,449
Other pharmaceutical (4)			244						321						564						210						306						518						616						949						1,565						637						950						1,589
Total Pharmaceutical segment sales			6,620						6,343						12,963						5,670						5,826						11,496						19,119						20,707						39,826						14,611						16,103						30,714
Animal Health:
Livestock			186						643						829						190						675						864						521						1,965						2,486						508						1,996						2,503
Companion Animals			289						253						542						277						276						553						904						929						1,834						855						948						1,804
Total Animal Health segment sales			475						896						1,371						467						951						1,417						1,425						2,894						4,320						1,363						2,944						4,307
Total segment sales			7,095						7,239						14,334						6,137						6,777						12,913						20,544						23,601						44,146						15,974						19,047						35,021
Other (5)			227						398						625						139						101						241						383						925						1,307						192						(30)						162
			$	7,322					$	7,637					$	14,959					$	6,276					$	6,878					$	13,154					$	20,927					$	24,526					$	45,453					$	16,166					$	19,017					$	35,183

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 revenue, including revenue hedging activities, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the nine months ended September 30, 2022 and 2021 also includes $156 million and $191 million, respectively, related to upfront and 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 September 30,												Nine Months Ended September 30,
($ in millions)			2022						2021						2022						2021
United States			$	7,322					$	6,276					$	20,927					$	16,166
Europe, Middle East and Africa			3,286						3,342						11,228						9,912
China			1,442						1,307						3,957						3,004
Japan			673						638						2,776						1,929
Asia Pacific (other than China and Japan)			854						613						2,792						1,782
Latin America			684						599						1,933						1,631
Other			698						379						1,840						759
			$	14,959					$	13,154					$	45,453					$	35,183

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)			2022						2021						2022						2021
Segment profits:
Pharmaceutical segment			$	9,590					$	8,606					$	28,263					$	22,450
Animal Health segment			515						505						1,672						1,629
Total segment profits			10,105						9,111						29,935						24,079
Other profits			377						141						831						29
Unallocated:
Interest income			40						7						62						27
Interest expense			(244)						(196)						(727)						(597)
Amortization			(460)						(360)						(1,623)						(1,231)
Depreciation			(448)						(358)						(1,257)						(1,031)
Research and development			(4,277)						(2,312)						(9,374)						(8,775)
Restructuring costs			(94)						(107)						(288)						(487)
Other unallocated, net			(1,416)						(660)						(4,628)						(2,044)
			$	3,583					$	5,266					$	12,931					$	9,970

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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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