Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2016

Sales of the Company’s products were as follows:



Years Ended December 31	2016		2015		2014
Primary Care and Women’s Health
Cardiovascular
Zetia	$	2,560	$	2,526	$	2,650
Vytorin	1,141		1,251		1,516
Diabetes
Januvia	3,908		3,863		3,931
Janumet	2,201		2,151		2,071
General Medicine and Women’s Health
NuvaRing	777		732		723
Implanon/Nexplanon	606		588		502
Dulera	436		536		460
Follistim AQ	355		383		412
Hospital and Specialty
Hepatitis
Zepatier	555		—		—
HIV
Isentress	1,387		1,511		1,673
Hospital Acute Care
Cubicin ⁽¹⁾	1,087		1,127		25
Noxafil	595		487		402
Invanz	561		569		529
Cancidas	558		573		681
Bridion	482		353		340
Primaxin	297		313		329
Immunology
Remicade	1,268		1,794		2,372
Simponi	766		690		689
Oncology
Keytruda	1,402		566		55
Emend	549		535		553
Temodar	283		312		350
Diversified Brands
Respiratory
Singulair	915		931		1,092
Nasonex	537		858		1,099
Other
Cozaar/Hyzaar	511		667		806
Arcoxia	450		471		519
Fosamax	284		359		470
Zocor	186		217		258
Vaccines ⁽²⁾
Gardasil/Gardasil 9	2,173		1,908		1,738
ProQuad/M-M-R II/Varivax	1,640		1,505		1,394
Zostavax	685		749		765
RotaTeq	652		610		659
Pneumovax 23	641		542		746
Other pharmaceutical ⁽³⁾	4,703		5,105		6,233
Total Pharmaceutical segment sales	35,151		34,782		36,042
Other segment sales ⁽⁴⁾	3,862		3,667		5,758
Total segment sales	39,013		38,449		41,800
Other ⁽⁵⁾	794		1,049		437
	$	39,807	$	39,498	$	42,237


⁽¹⁾	Sales of Cubicin in 2015 represent sales subsequent to the Cubist acquisition date. Sales of Cubicin in 2014 reflect sales in Japan pursuant to a previously existing licensing agreement.


⁽²⁾	These amounts do not reflect sales of vaccines sold in most major European markets through the Company’s joint venture, SPMSD, the results of which are reflected in equity income from affiliates which is included in Other (income) expense, net. These amounts do, however, reflect supply sales to SPMSD. On December 31, 2016, Merck and Sanofi terminated the SPMSD joint venture (see Note 8).


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


⁽⁴⁾	Represents the non-reportable segments of Animal Health, Healthcare Services and Alliances, as well as Consumer Care until its divestiture on October 1, 2014 (see Note 3). The Alliances segment includes revenue from the Company’s relationship with AZLP until termination on June 30, 2014 (see Note 8).


⁽⁵⁾	Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales. Other in 2016 and 2014 also includes approximately $170 million and $232 million, respectively, in connection with the sale of the marketing rights to certain products.

Consolidated revenues by geographic area where derived are as follows:



Years Ended December 31	2016		2015		2014
United States	$	18,478	$	17,519	$	17,071
Europe, Middle East and Africa	10,953		10,677		13,174
Asia Pacific	3,918		3,825		3,952
Japan	2,846		2,673		3,471
Latin America	2,155		2,825		3,151
Other	1,457		1,979		1,418
	$	39,807	$	39,498	$	42,237

A reconciliation of total segment profits to consolidated Income before taxes is as follows:



Years Ended December 31	2016			2015			2014
Segment profits:
Pharmaceutical segment	$	22,180		$	21,658		$	22,164
Other segments	1,507			1,573			2,386
Total segment profits	23,687			23,231			24,550
Other profits	481			810			627
Unallocated:
Interest income	328			289			266
Interest expense	(693		)	(672		)	(732		)
Equity income from affiliates	(19		)	135			59
Depreciation and amortization	(1,585		)	(1,573		)	(2,452		)
Research and development	(9,084		)	(5,871		)	(5,823		)
Amortization of purchase accounting adjustments	(3,692		)	(4,816		)	(4,182		)
Restructuring costs	(651		)	(619		)	(1,013		)
Gain on sale of certain migraine clinical development programs	100			250			—
Charge related to the settlement of worldwide Keytruda patent litigation	(625		)	—			—
Gain on divestiture of certain ophthalmic products	—			147			480
Foreign currency devaluation related to Venezuela	—			(876		)	—
Net charge related to the settlement of Vioxx shareholder class action litigation	—			(680		)	—
Gain on divestiture of Merck Consumer Care	—			—			11,209
Gain on AstraZeneca option exercise	—			—			741
Loss on extinguishment of debt	—			—			(628		)
Other unallocated, net	(3,588		)	(4,354		)	(5,819		)
	$	4,659		$	5,401		$	17,283

Equity income from affiliates and depreciation and amortization included in segment profits is as follows:



	Pharmaceutical			All Other			Total
Year Ended December 31, 2016
Included in segment profits:
Equity income from affiliates	$	105		$	—		$	105
Depreciation and amortization	(160		)	(23		)	(183		)
Year Ended December 31, 2015
Included in segment profits:
Equity income from affiliates	$	70		$	—		$	70
Depreciation and amortization	(82		)	(18		)	(100		)
Year Ended December 31, 2014
Included in segment profits:
Equity income from affiliates	$	90		$	108		$	198
Depreciation and amortization	(39		)	(18		)	(57		)

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



December 31	2016		2015		2014
United States	$	8,114	$	8,467	$	8,727
Europe, Middle East and Africa	2,732		2,844		3,120
Asia Pacific	775		842		897
Latin America	234		182		207
Japan	164		164		172
Other	7		8		13
	$	12,026	$	12,507	$	13,136