Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2023

Sales of the Company’s products were as follows:


Years Ended December 31	2023						2022						2021
	U.S.		Int’l		Total		U.S.		Int’l		Total		U.S.		Int’l		Total
Pharmaceutical:
Oncology
Keytruda	$	15,114	$	9,897	$	25,011	$	12,686	$	8,251	$	20,937	$	9,765	$	7,421	$	17,186
Alliance revenue - Lynparza (1)	607		592		1,199		584		532		1,116		515		473		989
Alliance revenue - Lenvima (1)	657		303		960		579		297		876		417		287		704
Welireg	209		10		218		123		—		123		13		—		13
Alliance revenue - Reblozyl (2)	168		43		212		123		43		166		—		17		17
Vaccines
Gardasil/Gardasil 9	2,083		6,803		8,886		2,065		4,832		6,897		1,881		3,792		5,673
ProQuad/M-M-R II/Varivax	1,837		531		2,368		1,724		518		2,241		1,629		506		2,135
RotaTeq	493		276		769		508		275		783		473		334		807
Vaxneuvance	561		103		665		163		7		170		3		—		3
Pneumovax 23	127		285		412		346		256		602		547		346		893
Vaqta	119		61		180		95		78		173		100		79		179
Hospital Acute Care
Bridion	1,156		686		1,842		922		762		1,685		762		770		1,532
Prevymis	264		341		605		188		240		428		153		218		370
Dificid	274		28		302		241		22		263		166		10		175
Zerbaxa	119		100		218		89		79		169		4		(5)		(1)
Noxafil	32		181		213		51		187		238		60		199		259
Primaxin	1		211		213		1		238		239		2		258		259
Cardiovascular
Alliance revenue - Adempas/Verquvo (3)	350		16		367		329		12		341		312		30		342
Adempas	—		255		255		—		238		238		—		252		252
Virology
Lagevrio	10		1,418		1,428		1,523		4,161		5,684		632		320		952
Isentress/Isentress HD	215		268		483		274		359		633		294		474		769
Neuroscience
Belsomra	81		150		231		79		179		258		78		241		318
Immunology
Simponi	—		710		710		—		706		706		—		825		825
Remicade	—		187		187		—		207		207		—		299		299
Diabetes
Januvia	1,151		1,039		2,189		1,248		1,565		2,813		1,404		1,920		3,324
Janumet	223		954		1,177		355		1,344		1,700		367		1,597		1,964
Other pharmaceutical (4)	688		1,596		2,283		693		1,628		2,319		824		1,690		2,516
Total Pharmaceutical segment sales	26,539		27,044		53,583		24,989		27,016		52,005		20,401		22,353		42,754
Animal Health:
Livestock	700		2,637		3,337		710		2,590		3,300		667		2,628		3,295
Companion Animal	1,104		1,184		2,288		1,112		1,138		2,250		1,091		1,182		2,273
Total Animal Health segment sales	1,804		3,821		5,625		1,822		3,728		5,550		1,758		3,810		5,568
Total segment sales	28,343		30,865		59,208		26,811		30,744		57,555		22,159		26,163		48,322
Other (5)	137		770		907		395		1,333		1,728		266		116		382
	$	28,480	$	31,635	$	60,115	$	27,206	$	32,077	$	59,283	$	22,425	$	26,279	$	48,704

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 (decreased) sales by $244 million, $810 million and $(203) million in 2023, 2022 and 2021, respectively, as well as revenue from third-party manufacturing arrangements (including sales to Organon). Other for 2023, 2022 and 2021 also includes $118 million, $165 million and $218 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	2023		2022		2021
United States	$	28,480	$	27,206	$	22,425
Europe, Middle East and Africa	13,254		14,493		13,341
China	6,802		5,191		4,378
Japan	3,164		3,629		2,726
Asia Pacific (other than China and Japan)	3,225		3,614		2,407
Latin America	3,086		2,582		2,206
Other	2,104		2,568		1,221
	$	60,115	$	59,283	$	48,704

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	2023		2022		2021
Segment profits:
Pharmaceutical segment	$	38,880	$	36,852	$	30,977
Animal Health segment	1,737		1,963		1,950
Total segment profits	40,617		38,815		32,927
Other profits	474		1,160		156
Unallocated:
Interest income	365		157		36
Interest expense	(1,146)		(962)		(806)
Amortization	(2,044)		(2,085)		(1,636)
Depreciation	(1,625)		(1,642)		(1,414)
Research and development	(30,008)		(13,011)		(11,692)
Restructuring costs	(599)		(337)		(661)
Charge for Zetia antitrust litigation settlements	(573)		—		—
Other unallocated, net	(3,572)		(5,651)		(3,031)
	$	1,889	$	16,444	$	13,879

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, 2023
Included in segment profits:
Equity income from affiliates	$	111	$	—	$	111
Depreciation	5		198		203
Year Ended December 31, 2022
Included in segment profits:
Equity income from affiliates	$	39	$	—	$	39
Depreciation	5		177		182
Year Ended December 31, 2021
Included in segment profits:
Equity income from affiliates	$	11	$	—	$	11
Depreciation	6		158		164

Property, Plant and Equipment, Net by Geographic Area

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


December 31	2023		2022		2021
United States	$	13,915	$	12,891	$	11,759
Europe, Middle East and Africa	7,562		6,993		6,081
Asia Pacific (other than China and Japan)	1,022		966		857
Latin America	222		225		199
China	193		207		220
Japan	133		135		159
Other	4		5		4
	$	23,051	$	21,422	$	19,279