Merck & Co., Inc. - FORM 8-K - EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE

Attached files

file	filename
8-K - FORM 8-K - Merck & Co., Inc.	d8k.htm
EX-99.1 - PRESS RELEASE ISSUED FEBRUARY 3, 2011 - Merck & Co., Inc.	dex991.htm

Exhibit 99.2

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FOURTH QUARTER 2009

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c


	GAAP			Purchase Accounting ⁽¹⁾			Restructuring Costs ⁽²⁾			Merger-Related Costs ⁽³⁾			Certain Other Items ⁽⁴⁾			Adjustment Subtotal			Non-GAAP

Sales	$	10,093														$	—		$	10,093

Materials and production		4,901			2,286			19									2,305			2,596

Marketing and administrative		3,455									265						265			3,190

Research and development		1,971						(13	)								(13	)		1,984

Restructuring costs		1,490						1,490									1,490			—

Equity income from affiliates		(374	)														—			(374	)

Other (income) expense, net		(7,813	)								23			(7,930	)		(7,907	)		94

Income Before Taxes		6,463			(2,286	)		(1,496	)		(288	)		7,930			3,860			2,603

Taxes on Income		(60	)														(458	) ⁽⁵⁾		398

Net Income		6,523															4,318			2,205

Less: Net Income Attributable to Noncontrolling Interests		29															—			29

Net Income Attributable to Merck & Co., Inc.	$	6,494														$	4,318		$	2,176

Earnings per Common Share Assuming Dilution	$	2.35																	$	0.79	⁽⁶⁾

Average Shares Outstanding Assuming Dilution		2,753																		2,753

Tax Rate		-0.9	%																	15.3	%

Merck is providing non-GAAP information that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. Management believes that providing this information enhances investors’ understanding of the company’s performance. This information should be considered in addition to, but not in lieu of, information prepared in accordance with GAAP.

(1)	Amounts included in materials and production costs reflect expenses for the amortization of intangible assets and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger.

(2)	Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested.

(3)	Merger-related costs include transaction and integration costs associated with the merger.

(4)

Included in other (income) expense, net is a $7.5 billion gain related to the Merck/Schering-Plough partnership recognized in connection with the merger. Also included in other (income) expense, net is $400 million of additional gain on the divesture of Merck’s interest in Merial Limited which had been deferred.

(5)	Represents the estimated tax impact on the reconciling items.

(6)

The company calculates earnings per share pursuant to the two-class method which requires the allocation of net income between common shareholders and participating security holders. Net income attributable to Merck & Co., Inc. common shareholders used to calculate non-GAAP earnings per common share assuming dilution was $2,166 million for the fourth quarter of 2009.

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

FULL YEAR 2009

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d


	GAAP			Purchase Accounting ⁽¹⁾			Restructuring Costs ⁽²⁾			Merger-Related Costs ⁽³⁾			Certain Other Items ⁽⁴⁾			Adjustment Subtotal			Non-GAAP

Sales	$	27,428														$	—		$	27,428

Materials and production		9,019			2,286			115									2,401			6,618

Marketing and administrative		8,543									371						371			8,172

Research and development		5,845						232									232			5,613

Restructuring costs		1,634						1,634									1,634			—

Equity income from affiliates		(2,235	)														—			(2,235	)

Other (income) expense, net		(10,668	)								173			(10,692	)		(10,519	)		(149	)

Income Before Taxes		15,290			(2,286	)		(1,981	)		(544	)		10,692			5,881			9,409

Taxes on Income		2,268															390	⁽⁵⁾		1,878

Net Income		13,022															5,491			7,531

Less: Net Income Attributable to Noncontrolling Interests		123															—			123

Net Income Attributable to Merck & Co., Inc.	$	12,899														$	5,491		$	7,408

Earnings per Common Share Assuming Dilution	$	5.65																	$	3.25	⁽⁶⁾

Average Shares Outstanding Assuming Dilution		2,273																		2,273

Tax Rate		14.8	%																	20.0	%

(1)	Amounts included in materials and production costs reflect expenses for the amortization of intangible assets and the amortization of purchase accounting adjustments to inventories recognized as a result of the merger.

(2)	Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested.

(3)	Merger-related costs include transaction and integration costs associated with the merger.

(4)	Included in other (income) expense, net is a $7.5 billion gain related to the Merck/Schering-Plough partnership recognized in connection with the merger. Also included in other (income) expense, net is a $3.2 billion gain on the divesture of Merck’s interest in Merial Limited.

(5)	Represents the estimated tax impact on the reconciling items.

(6)

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FOURTH QUARTER 2010

(AMOUNTS IN MILLIONS)

Table 3b

The following Table reflects Supplemental Combined Non-GAAP sales which are adjusted to reflect a full quarter of Merck and Schering-Plough combined results as if the merger closed as of January 1, 2009.


	Global						U.S.						International
	4Q10		Supp. Comb. Non-GAAP 4Q09		% Change		4Q10		Supp. Comb. Non-GAAP 4Q09		% Change		4Q10		Supp. Comb. Non-GAAP 4Q09		% Change

TOTAL SALES ⁽¹⁾	$	12,094	$	12,216		-1	$	5,224	$	5,535		-6	$	6,870	$	6,681		3


HUMAN HEALTH ⁽²⁾		10,581		10,805		-2		4,400		4,740		-7		6,182		6,064		2

Bone, Resp., Imm., & Dermatology
Singulair		1,349		1,260		7		838		810		3		511		450		14
Remicade		710		635		12								710		635		12
Nasonex		303		286		6		146		157		-7		157		129		22
Fosamax		234		285		-18		25		39		-36		209		246		-15
Clarinex		146		155		-6		47		55		-14		99		100		-1
Arcoxia		115		98		17								115		98		17
Proventil		55		56		-2		53		54		-2		2		2		14
Asmanex		53		58		-8		47		55		-15		6		2		*

Cardiovascular
Zetia		629		614		2		329		343		-4		299		271		10
Vytorin		562		577		-3		296		319		-7		266		258		3
Integrilin		63		72		-12		58		67		-14		5		5		9

Diabetes & Obesity
Januvia		675		558		21		425		390		9		250		168		49
Janumet		288		202		42		164		136		21		123		66		86

Infectious Disease
Isentress		313		234		34		164		113		45		149		121		23
PegIntron		198		216		-8		35		23		54		163		193		-16
Cancidas		174		175		—		17		19		-8		157		156		1
Primaxin		158		196		-19		29		41		-31		130		155		-16
Invanz		113		88		29		50		43		18		63		45		40
Avelox		92		118		-22		86		115		-25		6		4		79
Rebetol		54		57		-4								54		57		-4
Crixivan / Stocrin		58		52		11		2		2		-20		56		50		13

Diversified Brands
Cozaar / Hyzaar		415		955		-57		9		363		-98		406		592		-31
Zocor		121		139		-13		12		10		18		109		129		-15
Propecia		124		123		1		39		38		3		85		84		1
Claritin Rx		122		109		11								122		109		11
Vasotec / Vaseretic		64		85		-25								64		85		-25
Remeron		62		60		5		1		3		-55		61		57		7
Proscar		44		72		-39		1		2		-27		43		71		-39

Neurosciences & Ophthalmology
Maxalt		149		156		-5		106		107		-1		43		49		-12
Cosopt / Trusopt		131		134		-2		5		7		-24		126		127		-1
Subutex / Suboxone		1		56		-98								1		56		-98

Oncology
Temodar		266		292		-9		109		103		7		157		189		-17
Emend		110		89		23		65		56		16		45		34		34
Caelyx		75		70		7								75		70		7
Intron A		54		54		-1		28		29		-4		26		25		2

Vaccines
ProQuad, M-M-R II and Varivax		285		333		-14		272		310		-12		13		22		-43
Gardasil		221		277		-20		157		218		-28		64		59		8
RotaTeq		169		135		25		149		123		21		21		12		69
Pneumovax		156		128		22		115		74		56		40		54		-26
Zostavax		107		76		41		107		76		41

Women’s Health & Endocrine
NuvaRing		145		135		7		86		80		8		58		55		5
Follistim AQ		138		149		-7		40		45		-10		98		105		-6
Implanon		71		53		34		24		18		36		47		36		33
Cerazette		49		53		-8								49		53		-8

Other Human Health ⁽³⁾		1,160		1,079		8		263		297		-12		898		780		15

ANIMAL HEALTH		815		759		7		169		161		5		646		598		8

CONSUMER CARE ⁽²⁾		251		232		8		232		214		9		18		19		-2
Claritin OTC		67		63		6		65		62		5		2		1		*

Other Revenues ⁽⁴⁾		447		420		6		423		420		1		24				*
Astra		302		332		-9		302		332		-9

⁽¹⁾	Only select products are shown.

⁽²⁾	Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾	Includes Human Health products not individually shown above. Other Vaccines sales included in Other Human Health were $75 million and $50 million on a global basis for fourth quarter 2010 and 2009, respectively.

⁽⁴⁾	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

Note: The company is providing Supplemental Combined Non-GAAP sales to reflect the revenues of the company’s product sales on a comparable basis to periods prior to the merger. Merck has defined Supplemental Combined Non-GAAP sales as GAAP sales adjusted to reflect a full quarter of Merck and Schering-Plough performance as if the merger closed at the beginning of the periods indicated in this table. This supplemental information is provided to enhance investors’ understanding of the company’s sales performance. This information should be considered in addition to, but not in lieu of, sales reported in accordance with GAAP.

*	100% or over

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

FULL YEAR 2010

(AMOUNTS IN MILLIONS)

Table 3c

The following Table reflects Supplemental Combined Non-GAAP sales which are adjusted to reflect a full year of Merck and Schering-Plough combined results as if the merger closed as of January 1, 2009.


	Global						U.S.						International
	Full Year 2010		Supp. Comb. Non-GAAP Full Year 2009		% Change		Full Year 2010		Supp. Comb. Non-GAAP Full Year 2009		% Change		Full Year 2010		Supp. Comb. Non-GAAP Full Year 2009		% Change

TOTAL SALES ⁽¹⁾	$	45,987	$	45,964		—	$	20,226	$	21,269		-5	$	25,761	$	24,695		4


HUMAN HEALTH ⁽²⁾		39,811		40,098		-1		16,811		17,766		-5		23,000		22,332		3

Bone, Resp., Imm., & Dermatology
Singulair		4,987		4,660		7		3,219		3,044		6		1,768		1,615		9
Remicade		2,714		2,327		17								2,714		2,327		17
Nasonex		1,220		1,179		3		639		648		-1		581		530		9
Fosamax		926		1,100		-16		93		161		-42		832		939		-11
Clarinex		659		719		-8		203		249		-19		457		470		-3
Arcoxia		398		358		11								398		358		11
Proventil		210		225		-7		202		220		-8		8		5		58
Asmanex		208		214		-3		195		204		-4		13		10		25

Cardiovascular
Zetia		2,297		2,244		2		1,227		1,296		-5		1,070		948		13
Vytorin		2,014		2,112		-5		1,077		1,219		-12		938		893		5
Integrilin		266		295		-10		245		275		-11		20		19		5

Diabetes & Obesity
Januvia		2,385		1,922		24		1,563		1,404		11		822		518		59
Janumet		954		658		45		576		472		22		378		187		*

Infectious Disease
Isentress		1,090		752		45		554		370		50		536		382		40
PegIntron		737		844		-13		98		110		-11		639		735		-13
Cancidas		611		617		-1		61		73		-16		550		543		1
Primaxin		610		689		-11		123		136		-10		487		553		-12
Invanz		362		293		24		180		152		19		182		141		29
Avelox		316		368		-14		296		353		-16		20		15		36
Rebetol		221		254		-13		1		1		3		220		253		-13
Crixivan / Stocrin		206		206		—		8		10		-24		198		196		1

Diversified Brands
Cozaar / Hyzaar		2,104		3,561		-41		400		1,321		-70		1,705		2,240		-24
Zocor		468		558		-16		42		45		-8		426		513		-17
Propecia		447		440		1		148		148		—		298		293		2
Claritin Rx		420		433		-3								420		433		-3
Vasotec / Vaseretic		255		311		-18								255		311		-18
Remeron		223		234		-5		7		10		-31		216		224		-4
Proscar		216		291		-26		6		6		1		210		285		-26

Neurosciences & Ophthalmology
Maxalt		550		575		-4		378		398		-5		173		176		-2
Cosopt / Trusopt		484		503		-4		20		39		-50		464		464
Subutex / Suboxone		111		211		-47								111		211		-47

Oncology
Temodar		1,065		1,073		-1		403		387		4		662		686		-3
Emend		378		317		19		230		202		14		147		115		28
Caelyx		284		265		7								284		265		7
Intron A		209		231		-9		114		121		-6		95		110		-13

Vaccines
ProQuad, M-M-R II and Varivax		1,378		1,369		1		1,305		1,288		1		73		81		-9
Gardasil		988		1,118		-12		722		802		-10		266		317		-16
RotaTeq		519		522		-1		439		468		-6		81		54		49
Pneumovax		376		346		9		296		245		21		80		101		-21
Zostavax		243		277		-12		243		277		-12

Women’s Health & Endocrine
NuvaRing		559		511		9		342		313		9		217		198		10
Follistim AQ		528		546		-3		167		179		-6		361		368		-2
Implanon		236		179		32		86		63		38		150		116		29
Cerazette		209		187		11								209		187		11

Other Human Health ⁽³⁾		4,170		4,005		4		903		1,057		-15		3,266		2,947		11

ANIMAL HEALTH		2,941		2,716		8		616		599		3		2,326		2,117		10

CONSUMER CARE ⁽²⁾		1,342		1,281		5		1,213		1,175		3		128		105		22
Claritin OTC		401		406		-1		379		390		-3		23		16		45

Other Revenues ⁽⁴⁾		1,893		1,870		1		1,586		1,729		-8		307		141		*
Astra		1,252		1,414		-11		1,252		1,414		-11

⁽¹⁾	Only select products are shown.

⁽²⁾	Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾	Includes Human Health products not individually shown above. Other Vaccines sales included in Other Human Health were $282 million and $188 million on a global basis for full year 2010 and 2009, respectively.

⁽⁴⁾	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

Note: The company is providing Supplemental Combined Non-GAAP sales to reflect the revenues of the company’s product sales on a comparable basis to periods prior to the merger. Merck has defined Supplemental Combined Non-GAAP sales as GAAP sales adjusted to reflect a full year of Merck and Schering-Plough performance as if the merger closed at the beginning of the periods indicated in this table. This supplemental information is provided to enhance investors’ understanding of the company’s sales performance. This information should be considered in addition to, but not in lieu of, sales reported in accordance with GAAP.

*	100% or over

MERCK & CO., INC.

HUMAN HEALTH GEOGRAPHIC SALES

(AMOUNTS IN MILLIONS)

Table 3d


	1Q10			2Q10			3Q10			4Q10			Full Year

TOTAL HUMAN HEALTH	$	9,793		$	9,776		$	9,660		$	10,581		$	39,811


United States		4,090			4,041			4,281			4,400			16,811
% Human Health Sales		41.8	%		41.3	%		44.3	%		41.6	%		42.2	%

Europe ⁽¹⁾		2,831			2,660			2,360			2,690			10,541
% Human Health Sales		28.9	%		27.2	%		24.4	%		25.4	%		26.5	%

Japan		811			902			855			1,077			3,645
% Human Health Sales		8.3	%		9.2	%		8.9	%		10.2	%		9.2	%

Latin America		694			728			742			819			2,983
% Human Health Sales		7.1	%		7.4	%		7.7	%		7.7	%		7.5	%

Asia Pacific		587			659			659			755			2,659
% Human Health Sales		6.0	%		6.7	%		6.8	%		7.1	%		6.7	%

Eastern Europe/Middle East Africa		404			422			371			410			1,607
% Human Health Sales		4.1	%		4.3	%		3.8	%		3.9	%		4.0	%

Canada		337			328			374			364			1,403
% Human Health Sales		3.4	%		3.4	%		3.9	%		3.4	%		3.5	%

Other		39			37			17			67			161
% Human Health Sales		0.4	%		0.4	%		0.2	%		0.6	%		0.4	%

(1)	Europe primarily represents all European Union countries and the European Union accession markets.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

Full Year 2010

(AMOUNTS IN MILLIONS)

Table 3e


	2010 - GAAP
	1Q		2Q		3Q		4Q		Full Year

TOTAL SALES ⁽¹⁾	$	11,422	$	11,346	$	11,125	$	12,094	$	45,987


HUMAN HEALTH ⁽²⁾		9,793		9,776		9,660		10,581		39,811

Bone, Resp., Imm., & Dermatology
Singulair		1,165		1,258		1,215		1,349		4,987
Remicade		674		669		661		710		2,714
Nasonex		320		338		259		303		1,220
Fosamax		230		241		220		234		926
Clarinex		174		202		137		146		659
Arcoxia		95		95		94		115		398
Proventil		57		55		43		55		210
Asmanex		51		56		48		53		208

Cardiovascular
Zetia		534		564		571		629		2,297
Vytorin		477		490		485		562		2,014
Integrilin		70		70		63		63		266

Diabetes & Obesity
Januvia		511		600		600		675		2,385
Janumet		201		218		247		288		954

Infectious Disease
Isentress		232		267		278		313		1,090
PegIntron		186		185		168		198		737
Cancidas		153		150		135		174		611
Primaxin		159		158		135		158		610
Invanz		75		83		91		113		362
Avelox		106		59		59		92		316
Rebetol		56		55		55		54		221
Crixivan / Stocrin		52		48		49		58		206

Diversified Brands
Cozaar / Hyzaar		782		485		423		415		2,104
Zocor		116		117		114		121		468
Propecia		100		113		109		124		447
Claritin Rx		124		93		81		122		420
Vasotec / Vaseretic		59		63		69		64		255
Remeron		51		59		50		62		223
Proscar		58		56		58		44		216

Neurosciences & Ophthalmology
Maxalt		135		133		133		149		550
Cosopt / Trusopt		115		123		114		131		484
Subutex / Suboxone		52		51		7		1		111

Oncology
Temodar		274		271		254		266		1,065
Emend		84		93		91		110		378
Caelyx		74		66		70		75		284
Intron A		54		51		50		54		209

Vaccines
ProQuad, M-M-R II and Varivax		319		340		434		285		1,378
Gardasil		233		219		316		221		988
RotaTeq		93		139		119		169		519
Pneumovax		51		59		110		156		376
Zostavax		95		18		23		107		243

Women’s Health & Endocrine
NuvaRing		135		145		134		145		559
Follistim AQ		134		137		119		138		528
Implanon		51		51		64		71		236
Cerazette		55		49		56		49		209

Other Human Health ⁽³⁾		974		986		1,049		1,160		4,170

ANIMAL HEALTH		709		731		687		815		2,941

CONSUMER CARE ⁽²⁾		379		422		291		251		1,342
Claritin OTC		110		132		92		67		401

Other Revenues ⁽⁴⁾		542		417		487		447		1,893
Astra		364		241		345		302		1,252

⁽¹⁾	Only select products are shown.

⁽²⁾	Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾	Includes Human Health products not individually shown above. Other Vaccines sales included in Other Human Health were $55 million, $57 million, $94 million and $75 million for the first, second, third and fourth quarters of 2010, respectively.

⁽⁴⁾	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES - SUPPLEMENTAL COMBINED NON-GAAP

FULL YEAR 2009

(AMOUNTS IN MILLIONS)

Table 3f

The following Table reflects Supplemental Combined Non-GAAP sales which are adjusted to reflect full quarters and a full year of Merck and Schering-Plough combined results as if the merger closed as of January 1, 2009.


	2009 - Supplemental Combined Non-GAAP
	1Q		2Q		3Q		4Q		Full Year

TOTAL SALES ⁽¹⁾	$	10,683	$	11,534	$	11,531	$	12,216	$	45,964


HUMAN HEALTH ⁽²⁾		9,235		9,956		10,101		10,805		40,098

Bone, Resp., Imm., & Dermatology
Singulair		1,057		1,257		1,085		1,260		4,660
Remicade		518		565		608		635		2,327
Nasonex		306		321		266		286		1,179
Fosamax		261		277		276		285		1,100
Clarinex		174		226		164		155		719
Arcoxia		81		88		90		98		358
Proventil		54		56		59		56		225
Asmanex		49		54		53		58		214

Cardiovascular
Zetia		510		556		563		614		2,244
Vytorin		477		532		525		577		2,112
Integrilin		76		73		74		72		295

Diabetes & Obesity
Januvia		411		462		491		558		1,922
Janumet		128		155		173		202		658

Infectious Disease
PegIntron		216		215		198		216		844
Isentress		148		172		197		234		752
Primaxin		165		160		168		196		689
Cancidas		139		149		155		175		617
Avelox		109		71		70		118		368
Invanz		62		71		73		88		293
Rebetol		66		67		64		57		254
Crixivan / Stocrin		49		56		49		52		206

Diversified Brands
Cozaar / Hyzaar		839		906		861		955		3,561
Zocor		137		141		141		139		558
Propecia		103		106		109		123		440
Claritin Rx		132		96		95		109		433
Vasotec / Vaseretic		77		76		73		85		311
Proscar		72		79		67		72		291
Remeron		50		50		74		60		234

Neurosciences & Ophthalmology
Maxalt		133		141		144		156		575
Cosopt / Trusopt		121		125		123		134		503
Subutex / Suboxone		50		52		53		56		211

Oncology
Temodar		247		256		278		292		1,073
Emend		69		77		82		89		317
Caelyx		61		68		67		70		265
Intron A		54		67		56		54		231

Vaccines
ProQuad, M-M-R II and Varivax		252		322		462		333		1,369
Gardasil		262		268		311		277		1,118
RotaTeq		134		126		127		135		522
Pneumovax		41		47		130		128		346
Zostavax		75		42		84		76		277

Women’s Health & Endocrine
Follistim AQ		131		145		122		149		546
NuvaRing		115		129		131		135		511
Cerazette		39		46		49		53		187
Implanon		37		43		45		53		179

Other Human Health ⁽³⁾		945		965		1,016		1,079		4,005

ANIMAL HEALTH		621		672		664		759		2,716

CONSUMER CARE ⁽²⁾		384		381		283		232		1,281
Claritin OTC		149		108		85		63		406

Other Revenues ⁽⁴⁾		443		524		483		420		1,870
Astra		356		386		340		332		1,414

⁽¹⁾	Only select products are shown.

⁽²⁾	Human Health includes worldwide prescription pharmaceutical sales and consumer product sales excluding the US and Canada. Consumer Care includes US and Canada consumer product sales.

⁽³⁾	Includes Human Health products not individually shown above. Other Vaccines sales included in Other Human Health were $50M in 1Q09, $34M in 2Q09, $54M in 3Q09, and $50M in 4Q09, respectively.

⁽⁴⁾	Other revenues are primarily comprised of alliance revenue, miscellaneous corporate revenues and third party manufacturing sales.

Note: The company is providing Supplemental Combined Non-GAAP sales to reflect the revenues of the company’s product sales on a comparable basis to periods prior to the merger. Merck has defined Supplemental Combined Non-GAAP sales as GAAP sales adjusted to reflect a full year of Merck and Schering-Plough performance as if the merger closed at the beginning of the periods indicated in this table. This supplemental information is provided to enhance investors’ understanding of the company’s sales performance. This information should be considered in addition to, but not in lieu of, sales reported in accordance with GAAP.

MERCK & CO., INC.

EQUITY INCOME / JV SALES / OTHER (INCOME) EXPENSE - GAAP

FOURTH QUARTER 2010

Table 4

EQUITY INCOME FROM AFFILIATES (millions of dollars)


	4Q10			4Q09		FY 2010		FY 2009
ASTRAZENECA LP	$	190		$	192	$	546	$	674
MERCK / SCHERING-PLOUGH ⁽¹⁾		—			151		—		1,195
Other ⁽²⁾		(19	)		31		41		366

TOTAL	$	171		$	374	$	587	$	2,235

⁽¹⁾	Upon completion of the merger with Schering-Plough, the Merck/Schering-Plough partnership became wholly-owned by the company.

⁽²⁾	Primarily reflects results for Merial Limited (which was disposed of on September 17, 2009), Sanofi Pasteur MSD and Johnson & JohnsonºMerck Consumer Pharmaceuticals.

SANOFI PASTEUR MSD JOINT VENTURE SALES DETAIL (millions of dollars)

All sales reported here are end-market JV sales, presented on a “NET” basis.


	4Q10		4Q09		FY 2010		FY 2009
GARDASIL	$	106	$	132	$	350	$	549
FLU VACCINES		62		82		220		249
OTHER VIRAL VACCINES		27		33		93		112
ROTATEQ		9		13		42		42
HEPATITIS VACCINES		7		9		25		44
Other Vaccines		135		167		487		593

TOTAL SANOFI PASTEUR MSD SALES	$	346	$	436	$	1,217	$	1,589

OTHER (INCOME) EXPENSE, NET (millions of dollars)


	4Q10			4Q09			FY 2010			FY 2009
INTEREST INCOME	$	(27	)	$	(11	)	$	(83	)	$	(210	)
INTEREST EXPENSE		177			169			715			460
EXCHANGE LOSSES (GAINS)		130			(9	)		214			(12	)
Other, net ⁽¹⁾		29			(7,962	)		458			(10,906	)

TOTAL	$	309		$	(7,813	)	$	1,304		$	(10,668	)

⁽¹⁾

Other, net for the full year of 2010 primarily reflects a $950 million legal reserve and a $443 million gain recognized upon AstraZeneca’s exercise of the asset option. Other, net for the fourth quarter and full year of 2009 primarily reflects a $7.5 billion gain associated with the Merck/Schering-Plough partnership. In addition, the full year of 2009 also reflects a $3.2 billion gain on the sale of Merck’s interest in Merial Limited.

Merck & Co., Inc. - FORM 8-K - EX-99.2 - CERTAIN SUPPLEMENTAL INFORMATION NOT INCLUDED IN THE PRESS RELEASE - February 3, 2011

Attached files

Merck & Co., Inc. Reports