Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Sales of the Company’s products were as follows:



	Three Months Ended June 30,														Six Months Ended June 30,
	2020							2019							2020							2019
($ 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	$	2,043		$	1,345	$	3,388	$	1,498		$	1,136	$	2,634	$	3,949		$	2,722	$	6,672	$	2,782		$	2,121	$	4,903
Alliance revenue - Lynparza⁽¹⁾	105			73		178		66			45		111		190			133		323		116			74		190
Alliance revenue - Lenvima⁽¹⁾	98			53		151		54			43		97		188			91		279		104			67		171
Emend	6			27		33		67			54		121		11			65		76		130			107		237
Vaccines
Gardasil/Gardasil 9	168			488		656		456			430		886		629			1,124		1,753		818			906		1,724
ProQuad/M-M-R II/Varivax	263			115		378		500			174		675		596			217		813		843			328		1,171
RotaTeq	100			68		168		104			68		172		241			150		391		258			125		383
Pneumovax 23	21			96		117		123			47		170		203			170		373		248			107		355
Vaqta	17			11		28		38			20		58		47			41		88		67			39		105
Hospital Acute Care
Bridion	107			117		224		129			149		278		250			274		524		248			285		533
Noxafil	6			67		73		100			93		193		14			154		168		191			192		383
Prevymis	28			35		63		19			18		38		55			68		123		37			33		70
Primaxin	1			63		64		—			70		71		1			114		115		1			129		130
Invanz	—			43		43		18			60		78		6			102		108		31			118		150
Cancidas	(2		)	45		43		3			64		67		1			98		98		4			125		129
Cubicin	10			21		32		22			45		67		25			53		78		64			91		155
Zerbaxa	17			15		32		13			14		27		37			32		69		25			28		53
Immunology
Simponi	—			191		191		—			214		214		—			406		406		—			422		422
Remicade	—			73		73		—			98		98		—			160		160		—			221		221
Neuroscience
Belsomra	22			61		84		21			55		76		49			114		163		45			98		143
Virology
Isentress/Isentress HD	76			120		196		94			153		247		151			290		441		202			300		502
Zepatier	15			24		39		39			68		108		33			62		94		72			149		221
Cardiovascular
Zetia	(1		)	138		137		6			150		156		(4		)	285		282		6			290		296
Vytorin	2			37		39		3			73		76		5			86		92		6			167		174
Atozet	—			115		115		—			92		92		—			238		238		—			186		186
Alliance revenue - Adempas ⁽²⁾	73			6		79		49			2		51		122			11		133		89			5		94
Adempas	—			57		57		—			53		53		—			113		113		—			100		100
Diabetes
Januvia	413			441		854		471			437		908		768			860		1,628		855			877		1,732
Janumet	143			348		490		166			366		533		256			737		993		333			730		1,063
Women’s Health
Implanon/Nexplanon	87			44		132		136			48		183		237			90		326		285			98		382
NuvaRing	35			28		63		206			34		240		61			65		126		391			68		459
Diversified Brands
Singulair	4			96		100		8			153		160		9			246		255		13			338		352
Cozaar/Hyzaar	4			94		98		6			103		109		12			189		200		10			202		213
Arcoxia	—			65		65		—			75		75		—			135		135		—			149		149
Nasonex	4			45		49		(1		)	73		72		10			110		120		(2		)	170		168
Follistim AQ	20			24		44		24			39		63		40			45		85		53			67		121
Other pharmaceutical ⁽³⁾	385			720		1,103		369			837		1,203		792			1,500		2,293		697			1,589		2,283
Total Pharmaceutical segment sales	4,270			5,409		9,679		4,807			5,653		10,460		8,984			11,350		20,334		9,022			11,101		20,123
Animal Health:
Livestock	122			526		648		145			526		671		284			1,102		1,386		261			1,021		1,282
Companion Animals	220			233		453		190			263		453		442			486		928		367			500		867
Total Animal Health segment sales	342			759		1,101		335			789		1,124		726			1,588		2,314		628			1,521		2,149
Other segment sales ⁽⁴⁾	—			—		—		47			—		48		23			—		23		86			—		87
Total segment sales	4,612			6,168		10,780		5,189			6,442		11,632		9,733			12,938		22,671		9,736			12,622		22,359
Other ⁽⁵⁾	22			70		92		4			125		128		38			220		258		12			206		216
	$	4,634		$	6,238	$	10,872	$	5,193		$	6,567	$	11,760	$	9,771		$	13,158	$	22,929	$	9,748		$	12,828	$	22,575

U.S. plus international may not equal total due to rounding.


⁽¹⁾	Alliance revenue represents Merck’s share of profits, which are product sales net of cost of sales and commercialization costs (see Note 3).


⁽²⁾	Alliance revenue 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).


⁽³⁾	Other pharmaceutical primarily reflects sales of other human health pharmaceutical products, including products within the franchises not listed separately.


⁽⁴⁾	Represents sales for the Healthcare Services segment. All the businesses in the Healthcare Services segment were divested as of March 31, 2020.

⁽⁵⁾

Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. Other in the first six months of 2020 and 2019 also includes approximately $85 million and $15 million, respectively, related to the sale of the marketing rights for certain products.

Consolidated revenues 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)	2020		2019		2020		2019
United States	$	4,634	$	5,193	$	9,771	$	9,748
Europe, Middle East and Africa	3,071		3,163		6,605		6,265
China	834		763		1,699		1,509
Japan	867		921		1,678		1,720
Asia Pacific (other than China and Japan)	666		716		1,394		1,461
Latin America	510		658		1,066		1,219
Other	290		346		716		653
	$	10,872	$	11,760	$	22,929	$	22,575

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,
($ in millions)	2020			2019			2020			2019
Segment profits:
Pharmaceutical segment	$	6,560		$	7,115		$	14,036		$	13,690
Animal Health segment	407			405			885			820
Other segment	—			(2		)	2			—
Total segment profits	6,967			7,518			14,923			14,510
Other profits	61			94			200			124
Unallocated:
Interest income	14			75			39			164
Interest expense	(209		)	(233		)	(421		)	(442		)
Depreciation and amortization	(390		)	(427		)	(772		)	(786		)
Research and development	(1,994		)	(2,093		)	(4,092		)	(3,935		)
Amortization of purchase accounting adjustments	(299		)	(378		)	(594		)	(775		)
Restructuring costs	(83		)	(59		)	(155		)	(212		)
Other unallocated, net	(548		)	(1,238		)	(1,771		)	(2,322		)
	$	3,519		$	3,259		$	7,357		$	6,326