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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2025

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,
			2025																		2024																		2025																		2024
($ 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			$	4,749					$	3,207					$	7,956					$	4,412					$	2,858					$	7,270					$	9,057					$	6,104					$	15,161					$	8,531					$	5,686					$	14,217
Alliance revenue-Lynparza (1)			174						195						370						153						165						317						319						363						682						288						321						609
Alliance revenue-Lenvima (1)			183						83						265						177						73						249						368						155						523						349						155						504
Welireg			138						24						162						116						10						126						261						39						300						194						17						211
Alliance revenue-Reblozyl (2)			88						19						107						75						15						90						189						37						226						133						28						161
Vaccines
Gardasil/Gardasil 9			545						581						1,126						536						1,941						2,478						1,082						1,371						2,453						1,024						3,702						4,727
ProQuad/M-M-R II/Varivax			481						128						609						490						127						617						903						245						1,148						928						259						1,187
Vaxneuvance			136						93						229						99						90						189						275						184						459						260						148						408
RotaTeq			60						61						121						107						56						163						225						125						349						257						123						379
Capvaxive			129						—						129						—						—						—						235						1						236						—						—						—
Pneumovax 23			5						33						38						11						48						59						3						76						79						17						103						120
Hospital Acute Care
Bridion			411						50						461						351						104						455						789						113						902						680						215						895
Prevymis			115						113						228						90						98						188						217						219						436						165						197						362
Dificid			83						13						96						79						12						92						155						24						179						147						17						165
Zerbaxa			45						29						74						33						28						62						87						57						145						67						51						118
Cardiovascular
Winrevair			323						12						336						70						—						70						591						24						615						70						—						70
Alliance revenue-Adempas/Verquvo (3)			108						15						123						98						8						106						205						23						229						188						16						203
Adempas			—						80						80						—						72						72						—						147						147						—						142						142
Virology
Lagevrio			30						52						83						15						95						110						66						119						185						60						400						460
Isentress/Isentress HD			48						38						86						43						46						89						99						77						176						93						107						200
Delstrigo			14						70						83						14						45						60						29						121						150						26						89						116
Pifeltro			25						16						41						27						12						39						57						29						86						56						25						81
Neuroscience
Belsomra			18						21						40						19						34						53						31						58						90						33						66						99
Immunology
Simponi			—						—						—						—						172						172						—						—						—						—						356						356
Remicade			—						—						—						—						35						35						—						—						—						—						74						74
Diabetes
Januvia			216						155						372						177						227						405						561						360						921						361						463						824
Janumet			68						184						251						17						208						224						133						366						498						55						420						475
Other pharmaceutical (4)			136						450						584						190						430						618						317						997						1,313						354						899						1,252
Total Pharmaceutical segment sales			8,328						5,722						14,050						7,399						7,009						14,408						16,254						11,434						27,688						14,336						14,079						28,415
Animal Health:
Livestock			190						771						961						168						669						837						384						1,501						1,885						334						1,352						1,686
Companion Animal			309						376						685						287						358						645						617						732						1,349						595						712						1,307
Total Animal Health segment sales			499						1,147						1,646						455						1,027						1,482						1,001						2,233						3,234						929						2,064						2,993
Total segment sales			8,827						6,869						15,696						7,854						8,036						15,890						17,255						13,667						30,922						15,265						16,143						31,408
Other (5)			9						100						110						22						200						222						104						310						413						89						390						479
			$	8,836					$	6,969					$	15,806					$	7,876					$	8,236					$	16,112					$	17,359					$	13,977					$	31,335					$	15,354					$	16,533					$	31,887

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 $16 million and $118 million for the six months ended June 30, 2025 and 2024, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon & Co.). Other for the six months ended June 30, 2025 and 2024 also includes $100 million and $76 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)			2025						2024						2025						2024
United States			$	8,836					$	7,876					$	17,359					$	15,354
Europe, Middle East and Africa			3,659						3,515						7,109						7,078
Latin America			859						858						1,651						1,655
Asia Pacific (other than China and Japan)			785						748						1,474						1,472
Japan			626						686						1,295						1,507
China			446						1,817						1,148						3,589
Other			595						612						1,299						1,232
			$	15,806					$	16,112					$	31,335					$	31,887

Reconciliation of Segment Profits to Income before Taxes

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

			Three Months Ended June 30,																																				Six Months Ended June 30,
			2025																		2024																		2025																		2024
($ in millions)			Pharma- ceutical						Animal Health						Total						Pharma- ceutical						Animal  Health						Total						Pharma-ceutical						Animal Health						Total						Pharma-ceutical						Animal Health						Total
Segment sales			$	14,050					$	1,646					$	15,696					$	14,408					$	1,482					$	15,890					$	27,688					$	3,234					$	30,922					$	28,415					$	2,993					$	31,408
Less segment costs: (1)
Cost of sales			1,601						659												1,708						612												3,174						1,258												3,414						1,225
Selling, general and administrative			1,456						284												1,514						270												2,858						544												2,943						523
Research and development (2)			—						110												—						91												—						205												—						181
Other segment items (3)			(21)						—												(14)						1												(70)						1												(46)						—
Total segment profits			$	11,014					$	593					$	11,607					$	11,200					$	508					$	11,708					$	21,726					$	1,226					$	22,952					$	22,104					$	1,064					$	23,168
Other profits															30																		129																		231																		274
Unallocated:
Interest income															69																		69																		178																		141
Interest expense															(305)																		(310)																		(618)																		(613)
Amortization															(601)																		(614)																		(1,198)																		(1,087)
Depreciation															(455)																		(450)																		(896)																		(902)
Research and development															(3,844)																		(3,360)																		(7,321)																		(7,209)
Restructuring costs															(560)																		(80)																		(629)																		(202)
Other unallocated, net															(942)																		(1,086)																		(1,797)																		(1,895)
															$	4,999																	$	6,006																	$	10,902																	$	11,675

(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 June 30,																																				Six Months Ended June 30,
			2025																		2024																		2025																		2024
($ in millions)			Pharma- ceutical						Animal Health						Total						Pharma- ceutical						Animal  Health						Total						Pharma-ceutical						Animal Health						Total						Pharma-ceutical						Animal Health						Total
Equity income from affiliates			$	29					$	—					$	29					$	29					$	—					$	29					$	86					$	—					$	86					$	77					$	—					$	77
Depreciation			1						62						63						1						67						68						2						122						124						2						125						127

Property, Plant and Equipment, Net by Geographic Area

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

($ in millions)			June 30, 2025						December 31, 2024
United States			$	15,182					$	14,724
Europe, Middle East and Africa			8,554						7,548
Asia Pacific (other than China and Japan)			966						982
China			204						202
Japan			144						143
Latin America			135						133
Other			51						47
			$	25,236					$	23,779

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