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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2024

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,
			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			$	4,500					$	2,929					$	7,429					$	3,795					$	2,543					$	6,338					$	13,031					$	8,614					$	21,646					$	11,142					$	7,261					$	18,403
Alliance revenue-Lynparza (1)			161						177						337						153						146						299						449						498						947						439						445						884
Alliance revenue-Lenvima (1)			173						78						251						160						100						260						523						233						755						476						258						734
Welireg			127						12						139						51						3						54						320						29						349						141						6						146
Alliance revenue-Reblozyl (2)			82						18						100						43						10						52						215						45						261						108						33						142
Vaccines
Gardasil/Gardasil 9			1,020						1,285						2,306						838						1,746						2,585						2,045						4,988						7,032						1,718						5,297						7,015
ProQuad/M-M-R II/Varivax			572						131						703						567						146						713						1,500						391						1,891						1,435						388						1,823
Vaxneuvance			137						103						239						182						33						214						397						251						647						423						65						488
RotaTeq			131						62						193						108						48						156						388						185						572						381						203						584
Pneumovax 23			19						49						68						42						98						140						36						152						188						105						223						327
Hospital Acute Care
Bridion			339						81						420						265						159						424						1,020						296						1,315						841						572						1,413
Prevymis			101						107						208						70						87						157						265						305						570						186						244						430
Dificid			83						13						96						69						5						74						231						30						261						199						16						215
Zerbaxa			39						26						64						29						24						53						106						77						182						86						71						157
Noxafil			1						40						41						4						47						51						9						132						141						29						138						167
Cardiovascular
Alliance revenue-Adempas/Verquvo (3)			96						7						102						96						(4)						92						283						22						306						249						10						259
Adempas			—						72						72						—						65						65						—						214						214						—						189						189
Winrevair			147						3						149						—						—						—						216						3						219						—						—						—
Virology
Lagevrio			84						299						383						—						640						640						144						699						843						—						1,236						1,236
Isentress/Isentress HD			54						48						102						58						61						119						147						155						302						165						212						377
Delstrigo			15						50						65						13						40						54						42						139						180						37						110						148
Pifeltro			31						12						42						27						10						37						86						37						123						78						31						109
Neuroscience
Belsomra			20						58						78						23						35						58						53						124						177						60						117						176
Immunology
Simponi			—						189						189						—						179						179						—						545						545						—						539						539
Remicade			—						41						41						—						45						45						—						115						115						—						144						144
Diabetes
Januvia			67						211						278						328						252						581						428						674						1,102						842						800						1,642
Janumet			15						190						204						43						211						255						70						610						679						182						755						937
Other pharmaceutical (4)			213						426						644						189						381						568						559						1,232						1,796						518						1,239						1,758
Total Pharmaceutical segment sales			8,227						6,717						14,943						7,153						7,110						14,263						22,563						20,795						43,358						19,840						20,602						40,442
Animal Health:
Livestock			194						692						886						205						669						874						529						2,044						2,573						543						1,987						2,530
Companion Animal			293						307						601						257						269						526						888						1,019						1,907						875						942						1,817
Total Animal Health segment sales			487						999						1,487						462						938						1,400						1,417						3,063						4,480						1,418						2,929						4,347
Total segment sales			8,714						7,716						16,430						7,615						8,048						15,663						23,980						23,858						47,838						21,258						23,531						44,789
Other (5)			22						206						227						100						199						299						109						597						706						135						561						696
			$	8,736					$	7,922					$	16,657					$	7,715					$	8,247					$	15,962					$	24,089					$	24,455					$	48,544					$	21,393					$	24,092					$	45,485

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 $156 million and $173 million for the nine months ended September 30, 2024 and 2023, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon as discussed in Note 2). Other for the nine months ended September 30, 2024 and 2023 also includes $91 million and $118 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)			2024						2023						2024						2023
United States			$	8,736					$	7,715					$	24,089					$	21,393
Europe, Middle East and Africa			3,583						3,327						10,661						9,978
China			1,017						1,694						4,606						5,322
Latin America			936						895						2,591						2,298
Japan			938						1,081						2,445						2,514
Asia Pacific (other than China and Japan)			823						781						2,294						2,475
Other			624						469						1,858						1,505
			$	16,657					$	15,962					$	48,544					$	45,485

Reconciliation of Segment Profits to Income before Taxes

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

			Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions)			2024						2023						2024						2023
Segment profits:
Pharmaceutical segment			$	11,547					$	10,407					$	33,651					$	29,400
Animal Health segment			510						421						1,574						1,453
Total segment profits			12,057						10,828						35,225						30,853
Other profits			117						190						391						374
Unallocated:
Interest income			127						73						269						295
Interest expense			(330)						(317)						(943)						(836)
Amortization			(633)						(562)						(1,720)						(1,582)
Depreciation			(467)						(401)						(1,368)						(1,175)
Research and development			(5,716)						(3,183)						(12,926)						(20,523)
Restructuring costs			(56)						(126)						(258)						(344)
Charge for Zetia antitrust litigation settlements			—						—						—						(573)
Other unallocated, net			(1,009)						(882)						(2,904)						(2,554)
			$	4,090					$	5,620					$	15,766					$	3,935

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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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