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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Sales from Products

Sales of the Company’s products were as follows:

			Three Months Ended March 31,
			2025																		2024
($ in millions)			U.S.						Int’l						Total						U.S.						Int’l						Total
Pharmaceutical:
Oncology
Keytruda			$	4,308					$	2,897					$	7,205					$	4,119					$	2,828					$	6,947
Alliance revenue-Lynparza (1)			145						168						312						135						157						292
Alliance revenue-Lenvima (1)			186						72						258						173						82						255
Welireg			123						15						137						77						7						85
Alliance revenue-Reblozyl (2)			101						18						119						58						12						71
Vaccines
Gardasil/Gardasil 9			536						790						1,327						488						1,761						2,249
ProQuad/M-M-R II/Varivax			423						116						539						438						133						570
Vaxneuvance			139						92						230						161						58						219
RotaTeq			164						64						228						149						67						216
Capvaxive			106						1						107						—						—						—
Pneumovax 23			(2)						42						41						6						55						61
Hospital Acute Care
Bridion			378						63						441						329						111						440
Prevymis			102						106						208						74						100						174
Dificid			72						11						83						68						5						73
Zerbaxa			42						28						70						33						23						56
Cardiovascular
Winrevair			268						12						280						—						—						—
Alliance revenue-Adempas/Verquvo (3)			97						9						106						90						8						98
Adempas			—						68						68						—						70						70
Virology
Lagevrio			35						67						102						45						305						350
Isentress/Isentress HD			51						39						90						50						61						111
Delstrigo			15						52						67						12						44						56
Pifeltro			32						13						45						29						13						42
Neuroscience
Belsomra			13						37						50						15						32						46
Immunology
Simponi			—						—						—						—						184						184
Remicade			—						—						—						—						39						39
Diabetes
Januvia			344						204						549						183						236						419
Janumet			65						182						247						39						212						251
Other pharmaceutical (4)			184						545						729						165						467						632
Total Pharmaceutical segment sales			7,927						5,711						13,638						6,936						7,070						14,006
Animal Health:
Livestock			194						730						924						166						683						850
Companion Animal			308						356						664						308						354						661
Total Animal Health segment sales			502						1,086						1,588						474						1,037						1,511
Total segment sales			8,429						6,797						15,226						7,410						8,107						15,517
Other (5)			93						210						303						68						190						258
			$	8,522					$	7,007					$	15,529					$	7,478					$	8,297					$	15,775

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 $58 million and $54 million for the three months ended March 31, 2025 and 2024, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for the three months ended March 31, 2025 and 2024 also includes $95 million and $61 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)			2025						2024
United States			$	8,522					$	7,478
Europe, Middle East and Africa			3,454						3,563
Latin America			792						796
China			702						1,772
Asia Pacific (other than China and Japan)			689						724
Japan			669						821
Other			701						621
			$	15,529					$	15,775

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,
			2025																		2024
($ in millions)			Pharmaceutical						Animal Health						Total						Pharmaceutical						Animal Health						Total
Segment sales			$	13,638					$	1,588					$	15,226					$	14,006					$	1,511					$	15,517
Less segment costs: (1)
Cost of sales			1,573						600												1,706						613
Selling, general and administrative			1,402						260												1,429						252
Research and development (2)			—						95												—						90
Other segment items (3)			(49)						(1)												(33)						1
Total segment profits			10,712						634						11,346						10,904						555						11,459
Other profits															202																		146
Unallocated:
Interest income															109																		73
Interest expense															(313)																		(303)
Amortization															(597)																		(473)
Depreciation															(441)																		(452)
Research and development															(3,477)																		(3,851)
Restructuring costs															(69)																		(123)
Other unallocated, net															(857)																		(806)
															$	5,903																	$	5,670

(1)    The significant expense categories and amounts align with the segment level information that is regularly provided to the chief operating decision maker.

(2)    Human health-related research and development expenses incurred by Merck Research Laboratories are not allocated to segment profits as noted below.

(3)    Includes equity (income) loss from affiliates and other miscellaneous non-operating expenses.

Equity Loss from Affiliates and Depreciation Included in Segment Profits

Equity income from affiliates and depreciation included in segment profits is as follows:

			Three Months Ended March 31,
			2025																		2024
($ in millions)			Pharmaceutical						Animal Health						Total						Pharmaceutical						Animal Health						Total
Equity income from affiliates			$	58					$	—					$	58					$	48					$	—					$	48
Depreciation			1						60						61						1						58						59

Property, Plant and Equipment, Net by Geographic Area

Property, plant and equipment, net, by geographic area where located is as follows:

($ in millions)			March 31, 2025						December 31, 2024
United States			$	14,891					$	14,724
Europe, Middle East and Africa			8,402						7,548
Asia Pacific (other than China and Japan)			973						982
China			198						202
Japan			145						143
Latin America			135						133
Other			49						47
			$	24,793					$	23,779

X

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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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