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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

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,
			2024																		2023																		2024																		2023
($ 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			$	4,412					$	2,858					$	7,270					$	3,863					$	2,408					$	6,271					$	8,531					$	5,686					$	14,217					$	7,348					$	4,718					$	12,065
Alliance revenue-Lynparza (1)			153						165						317						144						166						310						288						321						609						286						299						585
Alliance revenue-Lenvima (1)			177						73						249						163						79						242						349						155						504						316						158						474
Welireg			116						10						126						49						2						50						194						17						211						90						3						92
Alliance revenue-Reblozyl (2)			75						15						90						36						11						47						133						28						161						66						24						90
Vaccines
Gardasil/Gardasil 9			536						1,941						2,478						464						1,994						2,458						1,024						3,702						4,727						880						3,550						4,430
ProQuad/M-M-R II/Varivax			490						127						617						447						135						582						928						259						1,187						868						242						1,109
Vaxneuvance			99						90						189						147						20						168						260						148						408						241						33						274
RotaTeq			107						56						163						93						37						131						257						123						379						273						155						428
Pneumovax 23			11						48						59						23						69						92						17						103						120						63						125						188
Hospital Acute Care
Bridion			351						104						455						299						203						502						680						215						895						576						413						989
Prevymis			90						98						188						61						82						143						165						197						362						116						157						273
Dificid			79						12						92						68						8						76						147						17						165						130						11						141
Zerbaxa			33						28						62						30						24						54						67						51						118						57						47						104
Noxafil			—						44						45						11						45						55						8						92						101						25						91						116
Cardiovascular
Alliance revenue-Adempas/Verquvo (3)			98						8						106						70						(2)						68						188						16						203						153						14						167
Adempas			—						72						72						—						65						65						—						142						142						—						125						125
Winrevair			70						—						70						—						—						—						70						—						70						—						—						—
Virology
Lagevrio			15						95						110						2						201						203						60						400						460						—						595						595
Isentress/Isentress HD			43						46						89						56						80						136						93						107						200						108						151						259
Delstrigo			14						45						60						13						37						50						26						89						116						24						70						94
Pifeltro			27						12						39						27						11						38						56						25						81						51						21						72
Neuroscience
Belsomra			19						34						53						21						42						63						33						66						99						37						82						119
Immunology
Simponi			—						172						172						—						180						180						—						356						356						—						359						359
Remicade			—						35						35						—						48						48						—						74						74						—						99						99
Diabetes
Januvia			177						227						405						243						267						511						361						463						824						514						548						1,062
Janumet			17						208						224						82						272						354						55						420						475						138						544						683
Other pharmaceutical (4)			190						386						573						158						403						560						346						807						1,151						328						857						1,187
Total Pharmaceutical segment sales			7,399						7,009						14,408						6,570						6,887						13,457						14,336						14,079						28,415						12,688						13,491						26,179
Animal Health:
Livestock			168						669						837						165						643						807						334						1,352						1,686						338						1,318						1,656
Companion Animal			287						358						645						310						339						649						595						712						1,307						618						673						1,291
Total Animal Health segment sales			455						1,027						1,482						475						982						1,456						929						2,064						2,993						956						1,991						2,947
Total segment sales			7,854						8,036						15,890						7,045						7,869						14,913						15,265						16,143						31,408						13,644						15,482						29,126
Other (5)			22						200						222						(27)						149						122						89						390						479						32						364						396
			$	7,876					$	8,236					$	16,112					$	7,018					$	8,018					$	15,035					$	15,354					$	16,533					$	31,887					$	13,676					$	15,846					$	29,522

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 (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 $118 million and $128 million for the six months ended June 30, 2024 and 2023, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for the six months ended June 30, 2024 and 2023 also includes $76 million and $54 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 June 30,												Six Months Ended June 30,
($ in millions)			2024						2023						2024						2023
United States			$	7,876					$	7,018					$	15,354					$	13,676
Europe, Middle East and Africa			3,515						3,348						7,078						6,651
China			1,817						1,913						3,589						3,628
Latin America			858						742						1,655						1,403
Japan			686						675						1,507						1,434
Asia Pacific (other than China and Japan)			748						848						1,472						1,694
Other			612						491						1,232						1,036
			$	16,112					$	15,035					$	31,887					$	29,522

Reconciliation of Segment Profits to Income before Taxes

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

			Three Months Ended June 30,												Six Months Ended June 30,
($ in millions)			2024						2023						2024						2023
Segment profits:
Pharmaceutical segment			$	11,200					$	9,854					$	22,104					$	18,993
Animal Health segment			508						467						1,064						1,032
Total segment profits			11,708						10,321						23,168						20,025
Other profits			129						19						274						184
Unallocated:
Interest income			69						109						141						221
Interest expense			(310)						(277)						(613)						(519)
Amortization			(614)						(477)						(1,087)						(1,020)
Depreciation			(450)						(376)						(902)						(775)
Research and development			(3,360)						(13,194)						(7,209)						(17,341)
Restructuring costs			(80)						(151)						(202)						(218)
Charge for Zetia antitrust litigation settlements			—						—						—						(573)
Other unallocated, net			(1,086)						(1,309)						(1,895)						(1,669)
			$	6,006					$	(5,335)					$	11,675					$	(1,685)

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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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