Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2024

Sales of the Company’s products were as follows:


Years Ended December 31	2024						2023						2022
	U.S.		Int’l		Total		U.S.		Int’l		Total		U.S.		Int’l		Total
Pharmaceutical:
Oncology
Keytruda	$	17,872	$	11,610	$	29,482	$	15,114	$	9,897	$	25,011	$	12,686	$	8,251	$	20,937
Alliance revenue - Lynparza (1)	626		685		1,311		607		592		1,199		584		532		1,116
Alliance revenue - Lenvima (1)	705		305		1,010		657		303		960		579		297		876
Welireg	466		43		509		209		10		218		123		—		123
Alliance revenue - Reblozyl (2)	303		68		371		168		43		212		123		43		166
Vaccines
Gardasil/Gardasil 9	2,425		6,158		8,583		2,083		6,803		8,886		2,065		4,832		6,897
ProQuad/M-M-R II/Varivax	1,919		566		2,485		1,837		531		2,368		1,724		518		2,241
Vaxneuvance	461		347		808		561		103		665		163		7		170
RotaTeq	472		239		711		493		276		769		508		275		783
Pneumovax 23	56		207		263		127		285		412		346		256		602
Hospital Acute Care
Bridion	1,401		363		1,764		1,156		686		1,842		922		762		1,685
Prevymis	371		414		785		264		341		605		188		240		428
Dificid	303		37		340		274		28		302		241		22		263
Zerbaxa	146		106		252		119		100		218		89		79		169
Noxafil	7		170		177		32		181		213		51		187		238
Cardiovascular
Winrevair	408		11		419		—		—		—		—		—		—
Alliance revenue - Adempas/Verquvo (3)	388		27		415		350		16		367		329		12		341
Adempas	—		287		287		—		255		255		—		238		238
Virology
Lagevrio	176		787		964		10		1,418		1,428		1,523		4,161		5,684
Isentress/Isentress HD	185		209		394		215		268		483		274		359		633
Delstrigo	56		193		249		49		152		201		39		111		151
Pifeltro	113		50		163		101		41		142		87		30		118
Neuroscience
Belsomra	72		150		222		81		150		231		79		179		258
Immunology
Simponi	—		543		543		—		710		710		—		706		706
Remicade	—		114		114		—		187		187		—		207		207
Diabetes
Januvia	469		865		1,334		1,151		1,039		2,189		1,248		1,565		2,813
Janumet	161		774		935		223		954		1,177		355		1,344		1,700
Other pharmaceutical (4)	729		1,782		2,510		658		1,675		2,333		663		1,803		2,462
Total Pharmaceutical segment sales	30,290		27,110		57,400		26,539		27,044		53,583		24,989		27,016		52,005
Animal Health:
Livestock	732		2,729		3,462		700		2,637		3,337		710		2,590		3,300
Companion Animal	1,129		1,287		2,415		1,104		1,184		2,288		1,112		1,138		2,250
Total Animal Health segment sales	1,861		4,016		5,877		1,804		3,821		5,625		1,822		3,728		5,550
Total segment sales	32,151		31,126		63,277		28,343		30,865		59,208		26,811		30,744		57,555
Other (5)	126		765		891		137		770		907		395		1,333		1,728
	$	32,277	$	31,891	$	64,168	$	28,480	$	31,635	$	60,115	$	27,206	$	32,077	$	59,283

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 4).

(2) Alliance revenue for Reblozyl represents royalties and, for 2022, also includes a payment received related to the achievement of a regulatory approval milestone (see Note 4).

(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 4).

(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 $195 million, $244 million and $810 million in 2024, 2023 and 2022, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for 2024, 2023 and 2022 also includes $106 million, $118 million and $165 million, respectively, related to upfront and milestone payments received by Merck for out-licensing arrangements.

Consolidated Revenues by Geographic Area

Consolidated sales by geographic area where derived are as follows:


Years Ended December 31	2024		2023		2022
United States	$	32,277	$	28,480	$	27,206
Europe, Middle East and Africa	14,041		13,254		14,493
China	5,494		6,802		5,191
Latin America	3,459		3,086		2,582
Japan	3,280		3,164		3,629
Asia Pacific (other than China and Japan)	3,058		3,225		3,614
Other	2,559		2,104		2,568
	$	64,168	$	60,115	$	59,283

Reconciliation of Segment Profits to Income Before Taxes

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


Years Ended December 31	2024						2023						2022
	Pharma-ceutical		Animal Health		Total		Pharma-ceutical		Animal Health		Total		Pharma-ceutical		Animal Health		Total
Segment sales	$	57,400	$	5,877	$	63,277	$	53,583	$	5,625	$	59,208	$	52,005	$	5,550	$	57,555
Less segment costs: (1)
Cost of sales	6,828		2,469				8,849		2,498				9,678		2,259
Selling, general and administrative	6,128		1,084				5,903		1,038				5,474		999
Research and development (2)	—		385				—		353				—		329
Other segment items (3)	(89)		1				(49)		(1)				1		—
Total segment profits	44,533		1,938		46,471		38,880		1,737		40,617		36,852		1,963		38,815
Other profits					492						474						1,160
Unallocated:
Interest income					415						365						157
Interest expense					(1,271)						(1,146)						(962)
Amortization					(2,395)						(2,044)						(2,085)
Depreciation					(1,843)						(1,625)						(1,642)
Research and development					(17,350)						(30,008)						(13,011)
Restructuring costs					(309)						(599)						(337)
Charge for Zetia antitrust litigation settlements					—						(573)						—
Other unallocated, net					(4,274)						(3,572)						(5,651)
					$	19,936					$	1,889					$	16,444

(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:


	Pharmaceutical		Animal Health		Total
Year Ended December 31, 2024
Equity income from affiliates	$	144	$	—	$	144
Depreciation	5		256		261
Year Ended December 31, 2023
Equity income from affiliates	$	111	$	—	$	111
Depreciation	5		198		203
Year Ended December 31, 2022
Equity income from affiliates	$	39	$	—	$	39
Depreciation	5		177		182

Property, Plant and Equipment, Net by Geographic Area

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


December 31	2024		2023		2022
United States	$	14,724	$	13,915	$	12,891
Europe, Middle East and Africa	7,548		7,562		6,993
Asia Pacific (other than China and Japan)	982		1,022		966
China	202		193		207
Japan	143		133		135
Latin America	133		222		225
Other	47		4		5
	$	23,779	$	23,051	$	21,422