Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In contemplation of the Separation, the Merck Retained Products business in the Transferred Entities was distributed to Merck affiliates and, accordingly, the historical results of operations, assets and liabilities, and the cash flows of the Merck Retained Products for such Transferred Entities are reflected as discontinued operations.

The components of Income (loss) from discontinued operations, net of tax for the Merck Retained Products business are as follows:

	Three Months Ended March 31,
($ in millions)	2022		2021
Sales	$	—	$	89
Costs, Expenses and Other
Cost of Sales	—		52
Selling, general and administrative	—		14
Research and development	—		4
Other (income) expense, net	—		10
Income from discontinued operations before taxes	$	—	$	9
Taxes on income	—		5
Income from discontinued operations, net of taxes	$	—	$	4

Discontinued operations includes related party sales of $12 million for the three months ended March 31, 2021. Costs for inventory purchases from related parties was $50 million for the three months ended March 31, 2021.