Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2021

Sales of the Company’s products were as follows:


Years Ended December 31	2021						2020						2019
	U.S.		Int’l		Total		U.S.		Int’l		Total		U.S.		Int’l		Total
Pharmaceutical:
Oncology
Keytruda	$	9,765	$	7,421	$	17,186	$	8,352	$	6,028	$	14,380	$	6,305	$	4,779	$	11,084
Alliance revenue - Lynparza (1)	515		473		989		417		308		725		269		176		444
Alliance revenue - Lenvima (1)	417		287		704		359		220		580		239		165		404
Vaccines
Gardasil/Gardasil 9	1,881		3,792		5,673		1,755		2,184		3,938		1,831		1,905		3,737
ProQuad/M-M-R II/Varivax	1,629		506		2,135		1,378		500		1,878		1,683		592		2,275
Pneumovax 23	547		346		893		727		359		1,087		679		247		926
RotaTeq	473		334		807		486		311		797		506		284		791
Vaqta	100		79		179		103		67		170		130		108		238
Hospital Acute Care
Bridion	762		770		1,532		583		615		1,198		533		598		1,131
Prevymis	153		218		370		119		162		281		84		81		165
Primaxin	2		258		259		2		248		251		2		271		273
Noxafil	60		199		259		42		287		329		282		380		662
Cancidas	4		208		212		7		207		213		6		242		249
Invanz	(5)		207		202		9		202		211		30		233		263
Zerbaxa	4		(5)		(1)		74		56		130		63		58		121
Immunology
Simponi	—		825		825		—		838		838		—		830		830
Remicade	—		299		299		—		330		330		—		411		411
Neuroscience
Belsomra	78		241		318		81		247		327		92		214		306
Virology
Molnupiravir	632		320		952		—		—		—		—		—		—
Isentress/Isentress HD	294		474		769		326		531		857		398		576		975
Cardiovascular
Alliance revenue - Adempas/Verquvo (2)	312		30		342		259		22		281		194		10		204
Adempas	—		252		252		—		220		220		—		215		215
Diabetes
Januvia	1,404		1,920		3,324		1,470		1,836		3,306		1,724		1,758		3,482
Janumet	367		1,597		1,964		477		1,494		1,971		589		1,452		2,041
Other pharmaceutical (3)	1,007		1,302		2,310		984		1,328		2,312		1,215		1,661		2,873
Total Pharmaceutical segment sales	20,401		22,353		42,754		18,010		18,600		36,610		16,854		17,246		34,100
Animal Health:
Livestock	667		2,628		3,295		612		2,327		2,939		582		2,201		2,784
Companion Animals	1,091		1,182		2,273		872		892		1,764		724		885		1,609
Total Animal Health segment sales	1,758		3,810		5,568		1,484		3,219		4,703		1,306		3,086		4,393
Other segment sales (4)	—		—		—		23		—		23		174		1		175
Total segment sales	22,159		26,163		48,322		19,517		21,819		41,336		18,334		20,333		38,668
Other (5)	266		116		382		71		111		182		86		368		453
	$	22,425	$	26,279	$	48,704	$	19,588	$	21,930	$	41,518	$	18,420	$	20,701	$	39,121

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 5).

(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 5).

(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 fully divested by the first quarter of 2020.

(5) Other is primarily comprised of miscellaneous corporate revenues, including revenue hedging activities, as well as third-party manufacturing sales (including sales to Organon). Other for 2021 also includes $185 million related to the achievement of milestones for an out-licensed product that triggered contingent payments to Merck.

Consolidated Revenues by Geographic Area

Consolidated sales by geographic area where derived are as follows:


Years Ended December 31	2021		2020		2019
United States	$	22,425	$	19,588	$	18,420
Europe, Middle East and Africa	13,341		11,547		10,496
China	4,378		2,751		2,180
Japan	2,726		2,602		2,609
Asia Pacific (other than China and Japan)	2,407		2,113		2,126
Latin America	2,206		1,890		2,015
Other	1,221		1,027		1,275
	$	48,704	$	41,518	$	39,121

Reconciliation of Segment Profits to Income Before Taxes

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


Years Ended December 31	2021		2020		2019
Segment profits:
Pharmaceutical segment	$	30,977	$	26,106	$	23,448
Animal Health segment	1,950		1,669		1,612
Other segments	—		1		(7)
Total segment profits	32,927		27,776		25,053
Other profits	156		75		295
Unallocated:
Interest income	36		59		274
Interest expense	(806)		(831)		(893)
Amortization	(1,636)		(1,817)		(1,695)
Depreciation	(1,414)		(1,519)		(1,491)
Research and development	(11,692)		(12,911)		(9,351)
Restructuring costs	(661)		(575)		(626)
Other unallocated, net	(3,031)		(4,394)		(4,395)
	$	13,879	$	5,863	$	7,171

Equity Loss from Affiliates and Depreciation Included in Segment Profits

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


	Pharmaceutical		Animal Health		All Other		Total
Year Ended December 31, 2021
Included in segment profits:
Equity loss from affiliates	$	11	$	—	$	—	$	11
Depreciation	6		158		—		164
Year Ended December 31, 2020
Included in segment profits:
Equity loss from affiliates	$	6	$	—	$	—	$	6
Depreciation	6		143		1		150
Year Ended December 31, 2019
Included in segment profits:
Equity loss from affiliates	$	—	$	—	$	—	$	—
Depreciation	9		105		10		124

Property, Plant and Equipment, Net by Geographic Area

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


December 31	2021		2020		2019
United States	$	11,759	$	10,394	$	8,963
Europe, Middle East and Africa	6,081		5,314		4,129
Asia Pacific (other than China and Japan)	857		737		692
China	220		216		174
Latin America	199		169		180
Japan	159		166		152
Other	4		4		7
	$	19,279	$	17,000	$	14,297