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Segment Reporting | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company’s operations are principally managed on a product basis and include two operating segments, Pharmaceutical and Animal Health, 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, 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, animal producers, farmers and pet owners. Sales of the Company’s products were as follows:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
| U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total |  | U.S. |  | Int’l |  | Total
Pharmaceutical: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oncology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Keytruda | $ | 15,114 |  |  | $ | 9,897 |  |  | $ | 25,011 |  |  | $ | 12,686 |  |  | $ | 8,251 |  |  | $ | 20,937 |  |  | $ | 9,765 |  |  | $ | 7,421 |  |  | $ | 17,186 |
Alliance revenue - Lynparza (1) | 607 |  |  | 592 |  |  | 1,199 |  |  | 584 |  |  | 532 |  |  | 1,116 |  |  | 515 |  |  | 473 |  |  | 989 |
Alliance revenue - Lenvima (1) | 657 |  |  | 303 |  |  | 960 |  |  | 579 |  |  | 297 |  |  | 876 |  |  | 417 |  |  | 287 |  |  | 704 |
Welireg | 209 |  |  | 10 |  |  | 218 |  |  | 123 |  |  | — |  |  | 123 |  |  | 13 |  |  | — |  |  | 13 |
Alliance revenue - Reblozyl (2) | 168 |  |  | 43 |  |  | 212 |  |  | 123 |  |  | 43 |  |  | 166 |  |  | — |  |  | 17 |  |  | 17 |
Vaccines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gardasil/Gardasil 9 | 2,083 |  |  | 6,803 |  |  | 8,886 |  |  | 2,065 |  |  | 4,832 |  |  | 6,897 |  |  | 1,881 |  |  | 3,792 |  |  | 5,673 |
ProQuad/M-M-R II/Varivax | 1,837 |  |  | 531 |  |  | 2,368 |  |  | 1,724 |  |  | 518 |  |  | 2,241 |  |  | 1,629 |  |  | 506 |  |  | 2,135 |
RotaTeq | 493 |  |  | 276 |  |  | 769 |  |  | 508 |  |  | 275 |  |  | 783 |  |  | 473 |  |  | 334 |  |  | 807 |
Vaxneuvance | 561 |  |  | 103 |  |  | 665 |  |  | 163 |  |  | 7 |  |  | 170 |  |  | 3 |  |  | — |  |  | 3 |
Pneumovax 23 | 127 |  |  | 285 |  |  | 412 |  |  | 346 |  |  | 256 |  |  | 602 |  |  | 547 |  |  | 346 |  |  | 893 |
Vaqta | 119 |  |  | 61 |  |  | 180 |  |  | 95 |  |  | 78 |  |  | 173 |  |  | 100 |  |  | 79 |  |  | 179 |
Hospital Acute Care |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bridion | 1,156 |  |  | 686 |  |  | 1,842 |  |  | 922 |  |  | 762 |  |  | 1,685 |  |  | 762 |  |  | 770 |  |  | 1,532 |
Prevymis | 264 |  |  | 341 |  |  | 605 |  |  | 188 |  |  | 240 |  |  | 428 |  |  | 153 |  |  | 218 |  |  | 370 |
Dificid | 274 |  |  | 28 |  |  | 302 |  |  | 241 |  |  | 22 |  |  | 263 |  |  | 166 |  |  | 10 |  |  | 175 |
Zerbaxa | 119 |  |  | 100 |  |  | 218 |  |  | 89 |  |  | 79 |  |  | 169 |  |  | 4 |  |  | (5) |  |  | (1) |
Noxafil | 32 |  |  | 181 |  |  | 213 |  |  | 51 |  |  | 187 |  |  | 238 |  |  | 60 |  |  | 199 |  |  | 259 |
Primaxin | 1 |  |  | 211 |  |  | 213 |  |  | 1 |  |  | 238 |  |  | 239 |  |  | 2 |  |  | 258 |  |  | 259 |
Cardiovascular |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alliance revenue - Adempas/Verquvo (3) | 350 |  |  | 16 |  |  | 367 |  |  | 329 |  |  | 12 |  |  | 341 |  |  | 312 |  |  | 30 |  |  | 342 |
Adempas | — |  |  | 255 |  |  | 255 |  |  | — |  |  | 238 |  |  | 238 |  |  | — |  |  | 252 |  |  | 252 |
Virology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Lagevrio | 10 |  |  | 1,418 |  |  | 1,428 |  |  | 1,523 |  |  | 4,161 |  |  | 5,684 |  |  | 632 |  |  | 320 |  |  | 952 |
Isentress/Isentress HD | 215 |  |  | 268 |  |  | 483 |  |  | 274 |  |  | 359 |  |  | 633 |  |  | 294 |  |  | 474 |  |  | 769 |
Neuroscience |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Belsomra | 81 |  |  | 150 |  |  | 231 |  |  | 79 |  |  | 179 |  |  | 258 |  |  | 78 |  |  | 241 |  |  | 318 |
Immunology |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Simponi | — |  |  | 710 |  |  | 710 |  |  | — |  |  | 706 |  |  | 706 |  |  | — |  |  | 825 |  |  | 825 |
Remicade | — |  |  | 187 |  |  | 187 |  |  | — |  |  | 207 |  |  | 207 |  |  | — |  |  | 299 |  |  | 299 |
Diabetes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Januvia | 1,151 |  |  | 1,039 |  |  | 2,189 |  |  | 1,248 |  |  | 1,565 |  |  | 2,813 |  |  | 1,404 |  |  | 1,920 |  |  | 3,324 |
Janumet | 223 |  |  | 954 |  |  | 1,177 |  |  | 355 |  |  | 1,344 |  |  | 1,700 |  |  | 367 |  |  | 1,597 |  |  | 1,964 |
Other pharmaceutical (4) | 688 |  |  | 1,596 |  |  | 2,283 |  |  | 693 |  |  | 1,628 |  |  | 2,319 |  |  | 824 |  |  | 1,690 |  |  | 2,516 |
Total Pharmaceutical segment sales | 26,539 |  |  | 27,044 |  |  | 53,583 |  |  | 24,989 |  |  | 27,016 |  |  | 52,005 |  |  | 20,401 |  |  | 22,353 |  |  | 42,754 |
Animal Health: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Livestock | 700 |  |  | 2,637 |  |  | 3,337 |  |  | 710 |  |  | 2,590 |  |  | 3,300 |  |  | 667 |  |  | 2,628 |  |  | 3,295 |
Companion Animal | 1,104 |  |  | 1,184 |  |  | 2,288 |  |  | 1,112 |  |  | 1,138 |  |  | 2,250 |  |  | 1,091 |  |  | 1,182 |  |  | 2,273 |
Total Animal Health segment sales | 1,804 |  |  | 3,821 |  |  | 5,625 |  |  | 1,822 |  |  | 3,728 |  |  | 5,550 |  |  | 1,758 |  |  | 3,810 |  |  | 5,568 |
Total segment sales | 28,343 |  |  | 30,865 |  |  | 59,208 |  |  | 26,811 |  |  | 30,744 |  |  | 57,555 |  |  | 22,159 |  |  | 26,163 |  |  | 48,322 |
Other (5) | 137 |  |  | 770 |  |  | 907 |  |  | 395 |  |  | 1,333 |  |  | 1,728 |  |  | 266 |  |  | 116 |  |  | 382 |
| $ | 28,480 |  |  | $ | 31,635 |  |  | $ | 60,115 |  |  | $ | 27,206 |  |  | $ | 32,077 |  |  | $ | 59,283 |  |  | $ | 22,425 |  |  | $ | 26,279 |  |  | $ | 48,704 |
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 2022, also includes a payment received related to the achievement of a regulatory approval 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 which increased (decreased) sales by $244 million, $810 million and $(203) million in 2023, 2022 and 2021, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for 2023, 2022 and 2021 also includes $118 million, $165 million and $218 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements. Consolidated sales by geographic area where derived are as follows:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
United States | $ | 28,480 |  |  | $ | 27,206 |  |  | $ | 22,425 |
Europe, Middle East and Africa | 13,254 |  |  | 14,493 |  |  | 13,341 |
China | 6,802 |  |  | 5,191 |  |  | 4,378 |
Japan | 3,164 |  |  | 3,629 |  |  | 2,726 |
Asia Pacific (other than China and Japan) | 3,225 |  |  | 3,614 |  |  | 2,407 |
Latin America | 3,086 |  |  | 2,582 |  |  | 2,206 |
Other | 2,104 |  |  | 2,568 |  |  | 1,221 |
| $ | 60,115 |  |  | $ | 59,283 |  |  | $ | 48,704 |
A reconciliation of segment profits to Income from Continuing Operations Before Taxes is as follows:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
Segment profits: |  |  |  |  |
Pharmaceutical segment | $ | 38,880 |  |  | $ | 36,852 |  |  | $ | 30,977 |
Animal Health segment | 1,737 |  |  | 1,963 |  |  | 1,950 |
Total segment profits | 40,617 |  |  | 38,815 |  |  | 32,927 |
Other profits | 474 |  |  | 1,160 |  |  | 156 |
Unallocated: |  |  |  |  |
Interest income | 365 |  |  | 157 |  |  | 36 |
Interest expense | (1,146) |  |  | (962) |  |  | (806) |
Amortization | (2,044) |  |  | (2,085) |  |  | (1,636) |
Depreciation | (1,625) |  |  | (1,642) |  |  | (1,414) |
Research and development | (30,008) |  |  | (13,011) |  |  | (11,692) |
Restructuring costs | (599) |  |  | (337) |  |  | (661) |
Charge for Zetia antitrust litigation settlements | (573) |  |  | — |  |  | — |
Other unallocated, net | (3,572) |  |  | (5,651) |  |  | (3,031) |
| $ | 1,889 |  |  | $ | 16,444 |  |  | $ | 13,879 |
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 not directly incurred by the segments, 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 amortization of 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 arrangements. Other unallocated, net, includes expenses from corporate and manufacturing cost centers, 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. Equity income from affiliates and depreciation included in segment profits is as follows:
| Pharmaceutical |  | Animal Health |  | Total
Year Ended December 31, 2023 |  |  |  |  |
Included in segment profits: |  |  |  |  |
Equity income from affiliates | $ | 111 |  |  | $ | — |  |  | $ | 111 |
Depreciation | 5 |  |  | 198 |  |  | 203 |
Year Ended December 31, 2022 |  |  |  |  |
Included in segment profits: |  |  |  |  |
Equity income from affiliates | $ | 39 |  |  | $ | — |  |  | $ | 39 |
Depreciation | 5 |  |  | 177 |  |  | 182 |
Year Ended December 31, 2021 |  |  |  |  |
Included in segment profits: |  |  |  |  |
Equity income from affiliates | $ | 11 |  |  | $ | — |  |  | $ | 11 |
Depreciation | 6 |  |  | 158 |  |  | 164 |
Property, plant and equipment, net, by geographic area where located is as follows:
December 31 | 2023 |  | 2022 |  | 2021
United States | $ | 13,915 |  |  | $ | 12,891 |  |  | $ | 11,759 |
Europe, Middle East and Africa | 7,562 |  |  | 6,993 |  |  | 6,081 |
Asia Pacific (other than China and Japan) | 1,022 |  |  | 966 |  |  | 857 |
Latin America | 222 |  |  | 225 |  |  | 199 |
China | 193 |  |  | 207 |  |  | 220 |
Japan | 133 |  |  | 135 |  |  | 159 |
Other | 4 |  |  | 5 |  |  | 4 |
| $ | 23,051 |  |  | $ | 21,422 |  |  | $ | 19,279 |
The Company does not disaggregate assets on a products and services basis for internal management reporting and, therefore, such information is not presented.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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