Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Sales of the Company’s products were as follows:


	Three Months Ended September 30,												Nine Months Ended September 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	$	2,157	$	1,559	$	3,715	$	1,743	$	1,327	$	3,070	$	6,106	$	4,281	$	10,387	$	4,525	$	3,448	$	7,973
Alliance revenue - Lynparza (1)	107		89		196		71		53		123		297		223		519		186		126		313
Alliance revenue - Lenvima (1)	82		60		142		65		44		109		270		152		421		169		112		280
Emend	8		31		39		42		56		98		18		96		115		173		163		336
Vaccines
Gardasil/Gardasil 9	579		608		1,187		761		558		1,320		1,209		1,732		2,941		1,579		1,464		3,044
ProQuad/M-M-R II/Varivax	437		139		576		482		141		623		1,033		356		1,390		1,325		469		1,794
Pneumovax 23	276		99		375		179		58		237		478		270		748		428		164		592
RotaTeq	114		96		210		102		78		180		355		246		601		360		203		564
Vaqta	32		19		51		36		26		62		79		60		139		103		65		167
Hospital Acute Care
Bridion	162		157		320		133		151		284		412		431		843		381		437		817
Noxafil	13		66		79		77		100		177		27		220		247		268		291		560
Prevymis	32		46		77		22		23		45		87		113		200		60		55		115
Primaxin	1		73		74		2		75		77		2		187		189		2		204		207
Invanz	1		50		51		(1)		58		57		7		152		159		30		176		206
Cancidas	1		49		50		—		62		62		2		147		148		5		187		191
Cubicin	11		28		39		14		38		52		36		80		116		78		129		207
Zerbaxa	20		23		43		20		15		35		57		54		112		45		43		88
Immunology
Simponi	—		209		209		—		203		203		—		615		615		—		625		625
Remicade	—		82		82		—		101		101		—		242		242		—		322		322
Neuroscience
Belsomra	18		63		81		23		57		80		67		177		244		68		155		223
Virology
Isentress/Isentress HD	92		113		205		102		149		250		243		403		646		304		449		752
Zepatier	6		22		28		24		59		83		38		83		122		96		208		304
Cardiovascular
Zetia	(1)		103		103		5		142		147		(4)		389		384		11		432		443
Vytorin	3		44		47		5		52		57		9		130		139		11		219		231
Atozet	—		111		111		—		97		97		—		348		348		—		283		283
Alliance revenue - Adempas (2)	78		5		83		48		2		50		200		16		216		137		7		144
Adempas	—		55		55		—		57		57		—		167		167		—		158		158
Diabetes
Januvia	342		479		821		367		440		807		1,110		1,339		2,449		1,223		1,317		2,539
Janumet	105		400		506		129		375		503		361		1,138		1,499		462		1,105		1,567
Women’s Health
Implanon/Nexplanon	137		52		189		136		62		199		374		142		515		421		160		581
NuvaRing	24		34		58		202		39		241		85		98		184		593		107		700
Diversified Brands
Singulair	4		78		82		11		140		152		14		324		338		24		479		503
Cozaar/Hyzaar	5		86		91		6		110		116		17		275		292		16		313		329
Arcoxia	—		68		68		—		72		72		—		204		204		—		221		221
Nasonex	—		41		41		4		55		58		9		152		161		2		224		226
Follistim AQ	20		31		50		27		35		62		60		76		136		80		102		182
Other pharmaceutical (3)	352		834		1,186		343		804		1,149		1,144		2,334		3,478		1,037		2,394		3,431
Total Pharmaceutical segment sales	5,218		6,102		11,320		5,180		5,914		11,095		14,202		17,452		31,654		14,202		17,016		31,218
Animal Health:
Livestock	164		594		758		144		582		726		448		1,697		2,145		406		1,601		2,007
Companion Animals	234		228		462		193		203		396		676		714		1,390		560		704		1,264
Total Animal Health segment sales	398		822		1,220		337		785		1,122		1,124		2,411		3,535		966		2,305		3,271
Other segment sales (4)	—		—		—		46		—		46		23		—		23		133		1		133
Total segment sales	5,616		6,924		12,540		5,563		6,699		12,263		15,349		19,863		35,212		15,301		19,322		34,622
Other (5)	9		2		11		10		125		134		47		221		267		19		330		350
	$	5,625	$	6,926	$	12,551	$	5,573	$	6,824	$	12,397	$	15,396	$	20,084	$	35,479	$	15,320	$	19,652	$	34,972

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.

Consolidated revenues 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)	2020		2019		2020		2019
United States	$	5,625	$	5,573	$	15,396	$	15,320
Europe, Middle East and Africa	3,454		3,189		10,059		9,452
China	1,016		914		2,715		2,423
Japan	828		919		2,506		2,639
Asia Pacific (other than China and Japan)	735		756		2,129		2,217
Latin America	604		671		1,670		1,889
Other	289		375		1,004		1,032
	$	12,551	$	12,397	$	35,479	$	34,972

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)	2020		2019		2020		2019
Segment profits:
Pharmaceutical segment	$	7,974	$	7,747	$	22,010	$	21,437
Animal Health segment	451		423		1,336		1,243
Other segment	(1)		(2)		1		(2)
Total segment profits	8,424		8,168		23,347		22,678
Other profits	(12)		101		188		226
Unallocated:
Interest income	9		61		48		225
Interest expense	(203)		(231)		(624)		(674)
Depreciation and amortization	(395)		(382)		(1,173)		(1,169)
Research and development	(3,272)		(3,110)		(7,364)		(7,045)
Amortization of purchase accounting adjustments	(285)		(329)		(879)		(1,105)
Restructuring costs	(114)		(232)		(269)		(444)
Other unallocated, net	(724)		(1,699)		(2,490)		(4,019)
	$	3,428	$	2,347	$	10,784	$	8,673