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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Sales from Products

Sales of the Company’s products were as follows:

			Three Months Ended March 31,
			2023																		2022
($ in millions)			U.S.						Int’l						Total						U.S.						Int’l						Total
Pharmaceutical:
Oncology
Keytruda			$	3,485					$	2,310					$	5,795					$	2,779					$	2,030					$	4,809
Alliance revenue-Lynparza (1)			142						133						275						141						125						266
Alliance revenue-Lenvima (1)			153						79						232						156						71						227
Alliance revenue-Reblozyl (2)			30						12						43						27						25						52
Welireg			41						1						42						18						—						18
Vaccines
Gardasil/Gardasil 9			416						1,556						1,972						418						1,042						1,460
ProQuad/M-M-R II/Varivax			421						107						528						371						99						470
RotaTeq			180						117						297						175						41						216
Vaxneuvance			94						13						106						5						—						5
Pneumovax 23			40						56						96						118						55						173
Vaqta			30						10						40						29						7						36
Hospital Acute Care
Bridion			276						210						487						195						199						395
Prevymis			54						75						129						40						54						94
Primaxin			4						76						80						1						58						58
Dificid			62						3						65						49						3						52
Noxafil			14						46						60						10						48						57
Zerbaxa			27						23						50						18						12						30
Cardiovascular
Alliance revenue-Adempas/Verquvo (3)			83						16						99						71						1						72
Adempas			—						59						59						—						61						61
Virology
Lagevrio			(2)						394						392						1,523						1,723						3,247
Isentress/Isentress HD			52						71						123						61						97						158
Neuroscience
Belsomra			16						40						56						20						48						69
Immunology
Simponi			—						180						180						—						186						186
Remicade			—						51						51						—						61						61
Diabetes
Januvia			271						280						551						325						454						779
Janumet			56						272						329						63						391						454
Other pharmaceutical (4)			172						414						584						160						443						602
Total Pharmaceutical segment sales			6,117						6,604						12,721						6,773						7,334						14,107
Animal Health:
Livestock			174						676						849						171						661						832
Companion Animals			308						334						642						302						348						650
Total Animal Health segment sales			482						1,010						1,491						473						1,009						1,482
Total segment sales			6,599						7,614						14,212						7,246						8,343						15,589
Other (5)			60						214						275						93						220						312
			$	6,659					$	7,828					$	14,487					$	7,339					$	8,563					$	15,901

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 3).

(2)    Alliance revenue for Reblozyl represents royalties and, for 2022, also includes the receipt of a regulatory approval milestone payment (see Note 3).

(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 3).

(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 which increased sales by $99 million and $69 million for the three months ended March 31, 2023 and 2022, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the three months ended March 31, 2023 and 2022 also includes $51 million and $114 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 March 31,
($ in millions)			2023						2022
United States			$	6,659					$	7,339
Europe, Middle East and Africa			3,303						4,359
China			1,715						1,143
Asia Pacific (other than China and Japan)			846						930
Japan			758						989
Latin America			661						607
Other			545						534
			$	14,487					$	15,901

Reconciliation of Segment Profits to Income before Taxes

A reconciliation of segment profits to Income Before Taxes is as follows:

			Three Months Ended March 31,
($ in millions)			2023						2022
Segment profits:
Pharmaceutical segment			$	9,140					$	9,501
Animal Health segment			566						585
Total segment profits			9,706						10,086
Other profits			164						194
Unallocated:
Interest income			112						7
Interest expense			(242)						(243)
Amortization			(543)						(699)
Depreciation			(398)						(378)
Research and development			(4,147)						(2,446)
Restructuring costs			(67)						(53)
Charge for Zetia antitrust litigation settlements			(573)						—
Other unallocated, net			(362)						(1,607)
			$	3,650					$	4,861

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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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