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EX-99.1 - EX-99.1 - Merck & Co., Inc.a18-17779_1ex99d1.htm
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Exhibit 99.2

 

MERCK & CO., INC.

CONSOLIDATED STATEMENT OF INCOME - GAAP

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 1a

 

 

 

2018

 

2017

 

% Change

 

 

 

1Q

 

2Q

 

June YTD

 

1Q

 

2Q

 

June YTD

 

3Q

 

4Q

 

Full Year

 

2Q

 

June YTD

 

Sales

 

$

10,037

 

$

10,465

 

$

20,502

 

$

9,434

 

$

9,930

 

$

19,365

 

$

10,325

 

$

10,433

 

$

40,122

 

5

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs, Expenses and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

3,184

 

3,417

 

6,601

 

3,049

 

3,116

 

6,165

 

3,307

 

3,440

 

12,912

 

10

%

7

%

Marketing and administrative

 

2,508

 

2,508

 

5,016

 

2,472

 

2,500

 

4,972

 

2,459

 

2,643

 

10,074

 

 

1

%

Research and development

 

3,196

 

2,274

 

5,470

 

1,830

 

1,782

 

3,612

 

4,413

 

2,314

 

10,339

 

28

%

51

%

Restructuring costs

 

95

 

228

 

323

 

151

 

166

 

317

 

153

 

306

 

776

 

37

%

2

%

Other (income) expense, net

 

(291

)

(48

)

(340

)

(71

)

(73

)

(143

)

(207

)

(149

)

(500

)

-34

%

*

 

Income Before Taxes

 

1,345

 

2,086

 

3,432

 

2,003

 

2,439

 

4,442

 

200

 

1,879

 

6,521

 

-14

%

-23

%

Taxes on Income

 

604

 

370

 

975

 

447

 

488

 

935

 

251

 

2,917

 

4,103

 

 

 

 

 

Net Income (Loss)

 

741

 

1,716

 

2,457

 

1,556

 

1,951

 

3,507

 

(51

)

(1,038

)

2,418

 

-12

%

-30

%

Less: Net Income Attributable to Noncontrolling Interests

 

5

 

9

 

14

 

5

 

5

 

11

 

5

 

8

 

24

 

 

 

 

 

Net Income (Loss) Attributable to Merck & Co., Inc.

 

$

736

 

$

1,707

 

$

2,443

 

$

1,551

 

$

1,946

 

$

3,496

 

$

(56

)

$

(1,046

)

$

2,394

 

-12

%

-30

%

Earnings (Loss) per Common Share Assuming Dilution (1)

 

$

0.27

 

$

0.63

 

$

0.90

 

$

0.56

 

$

0.71

 

$

1.27

 

$

(0.02

)

$

(0.39

)

$

0.87

 

-11

%

-29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding Assuming Dilution (1)

 

2,710

 

2,696

 

2,702

 

2,766

 

2,752

 

2,759

 

2,727

 

2,715

 

2,748

 

 

 

 

 

Tax Rate

 

44.9

%

17.8

%

28.4

%

22.3

%

20.0

%

21.0

%

125.5

%

155.2

%

62.9

%

 

 

 

 

 


* 100% or greater

 

Sum of quarterly amounts may not equal year-to-date amounts due to rounding.

 

On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Materials and production costs, Marketing and administrative expenses and Research and development costs.  Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.

 

(1) Because the company recorded a net loss in the third and fourth quarters of 2017, no potential dilutive common shares were used in the computations of loss per common share assuming dilution as the effects would have been anti-dilutive.

 



 

MERCK & CO., INC.

GAAP TO NON-GAAP RECONCILIATION

SECOND QUARTER 2017

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2c

 

 

 

GAAP

 

Acquisition and
Divestiture-Related
Costs 
(1)

 

Restructuring
Costs 
(2)

 

Certain Other
Items

 

Adjustment
Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

$

3,116

 

827

 

33

 

 

 

860

 

$

2,256

 

Marketing and administrative

 

2,500

 

9

 

2

 

 

 

11

 

2,489

 

Research and development

 

1,782

 

7

 

9

 

 

 

16

 

1,766

 

Restructuring costs

 

166

 

 

 

166

 

 

 

166

 

 

Other (income) expense, net

 

(73

)

39

 

 

 

 

 

39

 

(112

)

Income Before Taxes

 

2,439

 

(882

)

(210

)

 

 

(1,092

)

3,531

 

Income Tax Provision (Benefit)

 

488

 

(127

)(3)

(45

)(3)

(88

)(4)

(260

)

748

 

Net Income

 

1,951

 

(755

)

(165

)

88

 

(832

)

2,783

 

Net Income Attributable to Merck & Co., Inc.

 

1,946

 

(755

)

(165

)

88

 

(832

)

2,778

 

Earnings per Common Share Assuming Dilution

 

$

0.71

 

(0.27

)

(0.06

)

0.03

 

(0.30

)

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rate

 

20.0

%

 

 

 

 

 

 

 

 

21.2

%

 

Only the line items that are affected by non-GAAP adjustments are shown.

 

Merck is providing certain 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 results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

 


(1) Amounts included in materials and production costs primarily reflect $779 million of expenses for the amortization of intangible assets recognized as a result of business acquisitions, as well as an intangible asset impairment charge of $47 million.  Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures.  Amounts included in research and development expenses primarily reflect an increase in the estimated fair value measurement of liabilities for contingent consideration.  Amounts included in other (income) expense, net reflect an increase in the estimated fair value measurement of liabilities for contingent consideration, partially offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.

 

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company’s formal restructuring programs.

 

(3) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

 

(4) Represents a tax benefit related to the settlement of a state income tax issue.

 



 

MERCK & CO., INC.

GAAP TO NON-GAAP RECONCILIATION

SIX MONTHS ENDED JUNE 30, 2017

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES)

(UNAUDITED)

Table 2d

 

 

 

GAAP

 

Acquisition and
Divestiture-Related
Costs 
(1)

 

Restructuring
Costs 
(2)

 

Certain Other
Items

 

Adjustment
Subtotal

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Materials and production

 

$

6,165

 

1,682

 

96

 

 

 

1,778

 

$

4,387

 

Marketing and administrative

 

4,972

 

29

 

3

 

 

 

32

 

4,940

 

Research and development

 

3,612

 

18

 

9

 

 

 

27

 

3,585

 

Restructuring costs

 

317

 

 

 

317

 

 

 

317

 

 

Other (income) expense, net

 

(143

)

36

 

 

 

(9

)

27

 

(170

)

Income Before Taxes

 

4,442

 

(1,765

)

(425

)

9

 

(2,181

)

6,623

 

Income Tax Provision (Benefit)

 

935

 

(285

)(3)

(93

)(3)

(85

)(4)

(463

)

1,398

 

Net Income

 

3,507

 

(1,480

)

(332

)

94

 

(1,718

)

5,225

 

Net Income Attributable to Merck & Co., Inc.

 

3,496

 

(1,480

)

(332

)

94

 

(1,718

)

5,214

 

Earnings per Common Share Assuming Dilution

 

$

1.27

 

(0.53

)

(0.12

)

0.03

 

(0.62

)

$

1.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Rate

 

21.0

%

 

 

 

 

 

 

 

 

21.1

%

 

Only the line items that are affected by non-GAAP adjustments are shown.

 

Merck is providing certain 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 results as it permits investors to understand how management assesses performance. Management uses these measures internally for planning and forecasting purposes and to measure the performance of the company along with other metrics. Senior management’s annual compensation is derived in part using non-GAAP income and non-GAAP EPS. This information should be considered in addition to, but not as a substitute for or superior to, information prepared in accordance with GAAP.

 


(1) Amounts included in materials and production costs primarily reflect $1.6 billion of expenses for the amortization of intangible assets recognized as a result of business acquisitions, as well as intangible asset impairment charges of $123 million.  Amounts included in marketing and administrative expenses reflect integration, transaction and certain other costs related to business acquisitions and divestitures.  Amounts included in research and development expenses primarily reflect an increase in the estimated fair value measurement of liabilities for contingent consideration.  Amounts included in other (income) expense, net reflect an increase in the estimated fair value measurement of liabilities for contingent consideration, partially offset by royalty income related to the termination of the Sanofi-Pasteur MSD joint venture.

 

(2) Amounts primarily include employee separation costs and accelerated depreciation associated with facilities to be closed or divested related to activities under the company’s formal restructuring programs.

 

(3) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments.

 

(4) Represents the estimated tax impact on the reconciling items based on applying the statutory rate of the originating territory of the non-GAAP adjustments, as well as a tax benefit of $88 million related to the settlement of a state income tax issue.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

SECOND QUARTER 2018
(AMOUNTS IN MILLIONS)

(UNAUDITED)
Table 3a

 

 

 

Global

 

U.S.

 

International

 

 

 

2Q 2018

 

2Q 2017

 

% Change

 

2Q 2018

 

2Q 2017

 

% Change

 

2Q 2018

 

2Q 2017

 

% Change

 

TOTAL SALES (1)

 

$

10,465

 

$

9,930

 

5

 

$

4,243

 

$

4,308

 

-2

 

$

6,222

 

$

5,623

 

11

 

PHARMACEUTICAL

 

9,282

 

8,759

 

6

 

3,822

 

3,929

 

-3

 

5,461

 

4,830

 

13

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

1,667

 

881

 

89

 

959

 

556

 

73

 

707

 

325

 

118

 

Emend

 

148

 

143

 

3

 

89

 

83

 

7

 

59

 

60

 

-3

 

Temodar

 

56

 

65

 

-13

 

1

 

3

 

-60

 

54

 

61

 

-11

 

Alliance Revenue - Lynparza

 

44

 

 

 

 

 

31

 

 

 

 

 

13

 

 

 

 

 

Alliance Revenue - Lenvima

 

35

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

Vaccines (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

608

 

469

 

30

 

302

 

312

 

-3

 

306

 

156

 

96

 

ProQuad / M-M-R II / Varivax

 

426

 

399

 

7

 

356

 

341

 

4

 

70

 

58

 

20

 

Pneumovax 23

 

193

 

166

 

16

 

122

 

104

 

17

 

71

 

61

 

16

 

RotaTeq

 

156

 

123

 

27

 

99

 

72

 

38

 

57

 

51

 

11

 

Zostavax

 

44

 

160

 

-73

 

1

 

107

 

-99

 

43

 

52

 

-18

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridion

 

240

 

163

 

48

 

95

 

54

 

78

 

145

 

109

 

33

 

Noxafil

 

188

 

155

 

21

 

87

 

77

 

13

 

100

 

78

 

29

 

Invanz

 

149

 

150

 

-1

 

87

 

93

 

-7

 

63

 

57

 

9

 

Cubicin

 

94

 

103

 

-9

 

48

 

53

 

-9

 

46

 

50

 

-8

 

Cancidas

 

87

 

112

 

-23

 

4

 

6

 

-36

 

83

 

106

 

-22

 

Primaxin

 

68

 

71

 

-4

 

 

 

1

 

-90

 

68

 

70

 

-3

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simponi

 

233

 

199

 

17

 

 

 

 

 

 

 

233

 

199

 

17

 

Remicade

 

157

 

208

 

-24

 

 

 

 

 

 

 

157

 

208

 

-24

 

Neuroscience

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Belsomra

 

71

 

52

 

35

 

29

 

25

 

16

 

42

 

28

 

52

 

Virology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress / Isentress HD

 

305

 

282

 

8

 

132

 

136

 

-3

 

174

 

146

 

19

 

Zepatier

 

113

 

517

 

-78

 

(10

)

256

 

-104

 

123

 

261

 

-53

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

226

 

367

 

-39

 

8

 

122

 

-93

 

218

 

246

 

-11

 

Vytorin

 

155

 

182

 

-15

 

3

 

30

 

-91

 

152

 

152

 

1

 

Atozet

 

101

 

63

 

62

 

 

 

 

 

 

 

101

 

63

 

62

 

Adempas

 

75

 

67

 

13

 

 

 

 

 

 

 

75

 

67

 

13

 

Diabetes (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

949

 

948

 

 

 

503

 

541

 

-7

 

446

 

407

 

10

 

Janumet

 

585

 

563

 

4

 

209

 

248

 

-16

 

377

 

315

 

20

 

Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

236

 

199

 

18

 

187

 

153

 

22

 

49

 

47

 

4

 

Implanon / Nexplanon

 

174

 

178

 

-3

 

114

 

125

 

-9

 

60

 

53

 

14

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

185

 

203

 

-9

 

5

 

6

 

-20

 

180

 

197

 

-9

 

Cozaar / Hyzaar

 

125

 

119

 

5

 

7

 

3

 

170

 

118

 

116

 

1

 

Arcoxia

 

84

 

89

 

-6

 

 

 

 

 

 

 

84

 

89

 

-6

 

Nasonex

 

81

 

85

 

-5

 

 

 

21

 

-98

 

81

 

64

 

26

 

Follistim AQ

 

70

 

79

 

-11

 

27

 

32

 

-16

 

43

 

47

 

-8

 

Fosamax

 

59

 

66

 

-11

 

3

 

2

 

74

 

56

 

65

 

-13

 

Dulera

 

42

 

69

 

-39

 

35

 

63

 

-46

 

7

 

5

 

39

 

Other Pharmaceutical (4)

 

1,053

 

1,064

 

-1

 

289

 

304

 

-5

 

765

 

761

 

1

 

ANIMAL HEALTH

 

1,090

 

955

 

14

 

311

 

270

 

15

 

779

 

685

 

14

 

Livestock

 

633

 

582

 

9

 

107

 

103

 

4

 

526

 

479

 

10

 

Companion Animals

 

457

 

373

 

23

 

204

 

167

 

22

 

253

 

206

 

23

 

Other Revenues (5)

 

93

 

216

 

-57

 

110

 

109

 

1

 

(18

)

106

 

-117

 

 


(1) Only select products are shown.

 

(2) Total Vaccines sales were $1,533 million and $1,404 million on a global basis for second quarter 2018 and 2017, respectively.

 

(3) Total Diabetes sales were $1,571 million and $1,520 million on a global basis for second quarter 2018 and 2017, respectively.

 

(4) Includes Pharmaceutical products not individually shown above.

 

(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.

 



 

MERCK & CO., INC.

FRANCHISE / KEY PRODUCT SALES

JUNE YEAR-TO-DATE 2018
(AMOUNTS IN MILLIONS)

(UNAUDITED)
Table 3b

 

 

 

Global

 

U.S.

 

International

 

 

 

June YTD

 

June YTD

 

 

 

June YTD

 

June YTD

 

 

 

June YTD

 

June YTD

 

 

 

 

 

2018

 

2017

 

% Change

 

2018

 

2017

 

% Change

 

2018

 

2017

 

% Change

 

TOTAL SALES (1)

 

$

20,502

 

$

19,365

 

6

 

$

8,376

 

$

8,503

 

-1

 

$

12,126

 

$

10,862

 

12

 

PHARMACEUTICAL

 

18,201

 

16,944

 

7

 

7,538

 

7,690

 

-2

 

10,663

 

9,255

 

15

 

Oncology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keytruda

 

3,131

 

1,465

 

114

 

1,797

 

917

 

96

 

1,333

 

547

 

144

 

Emend

 

273

 

276

 

-1

 

168

 

169

 

 

 

105

 

107

 

-2

 

Temodar

 

113

 

130

 

-13

 

2

 

4

 

-42

 

111

 

126

 

-12

 

Alliance Revenue - Lynparza

 

76

 

 

 

 

 

55

 

 

 

 

 

22

 

 

 

 

 

Alliance Revenue - Lenvima

 

35

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

Vaccines (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gardasil / Gardasil 9

 

1,269

 

1,001

 

27

 

682

 

711

 

-4

 

586

 

290

 

102

 

ProQuad / M-M-R II / Varivax

 

818

 

754

 

8

 

668

 

639

 

5

 

150

 

115

 

30

 

Pneumovax 23

 

372

 

329

 

13

 

234

 

219

 

7

 

137

 

110

 

24

 

RotaTeq

 

349

 

347

 

1

 

250

 

251

 

 

 

99

 

96

 

3

 

Zostavax

 

108

 

313

 

-65

 

17

 

216

 

-92

 

91

 

97

 

-6

 

Hospital Acute Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridion

 

444

 

310

 

43

 

175

 

99

 

77

 

269

 

211

 

27

 

Noxafil

 

363

 

296

 

23

 

168

 

142

 

19

 

195

 

154

 

26

 

Invanz

 

300

 

286

 

5

 

177

 

175

 

1

 

123

 

111

 

10

 

Cubicin

 

192

 

198

 

-3

 

95

 

107

 

-11

 

97

 

92

 

6

 

Cancidas

 

178

 

233

 

-24

 

7

 

11

 

-35

 

171

 

222

 

-23

 

Primaxin

 

140

 

133

 

5

 

5

 

2

 

*

 

135

 

132

 

2

 

Immunology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Simponi

 

464

 

383

 

21

 

 

 

 

 

 

 

464

 

383

 

21

 

Remicade

 

324

 

437

 

-26

 

 

 

 

 

 

 

324

 

437

 

-26

 

Neuroscience

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Belsomra

 

125

 

94

 

33

 

52

 

45

 

15

 

73

 

49

 

50

 

Virology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Isentress / Isentress HD

 

586

 

587

 

 

 

260

 

279

 

-7

 

326

 

308

 

6

 

Zepatier

 

243

 

895

 

-73

 

(10

)

455

 

-102

 

253

 

440

 

-42

 

Cardiovascular

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zetia

 

531

 

701

 

-24

 

25

 

233

 

-89

 

505

 

468

 

8

 

Vytorin

 

322

 

423

 

-24

 

11

 

120

 

-91

 

311

 

303

 

3

 

Atozet

 

174

 

112

 

55

 

 

 

 

 

 

 

174

 

112

 

55

 

Adempas

 

143

 

151

 

-5

 

 

 

 

 

 

 

143

 

151

 

-5

 

Diabetes (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Januvia

 

1,829

 

1,787

 

2

 

968

 

1,048

 

-8

 

862

 

740

 

17

 

Janumet

 

1,129

 

1,059

 

7

 

401

 

442

 

-9

 

729

 

617

 

18

 

Women’s Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NuvaRing

 

452

 

359

 

26

 

357

 

265

 

35

 

95

 

94

 

1

 

Implanon / Nexplanon

 

348

 

349

 

 

 

242

 

257

 

-6

 

106

 

92

 

16

 

Diversified Brands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Singulair

 

360

 

389

 

-7

 

11

 

12

 

-11

 

350

 

377

 

-7

 

Cozaar / Hyzaar

 

245

 

231

 

6

 

14

 

6

 

150

 

231

 

226

 

2

 

Nasonex

 

203

 

224

 

-9

 

2

 

39

 

-95

 

201

 

185

 

9

 

Arcoxia

 

166

 

192

 

-13

 

 

 

 

 

 

 

166

 

192

 

-13

 

Follistim AQ

 

138

 

160

 

-14

 

56

 

74

 

-24

 

81

 

86

 

-5

 

Fosamax

 

114

 

127

 

-10

 

1

 

3

 

-63

 

113

 

124

 

-9

 

Dulera

 

99

 

151

 

-35

 

85

 

139

 

-39

 

14

 

12

 

18

 

Other Pharmaceutical (4)

 

2,045

 

2,062

 

-1

 

563

 

611

 

-8

 

1,483

 

1,449

 

2

 

ANIMAL HEALTH

 

2,155

 

1,894

 

14

 

618

 

553

 

12

 

1,537

 

1,341

 

15

 

Livestock

 

1,286

 

1,161

 

11

 

231

 

223

 

4

 

1,055

 

938

 

12

 

Companion Animals

 

869

 

733

 

18

 

387

 

330

 

17

 

482

 

403

 

20

 

Other Revenues (5)

 

146

 

527

 

-72

 

220

 

260

 

-15

 

(74

)

266

 

-128

 

 


* 200% or greater

 

(1) Only select products are shown.

 

(2) Total Vaccines sales were $3,094 million and $2,919 million on a global basis for June YTD 2018 and 2017, respectively.

 

(3) Total Diabetes sales were $3,003 million and $2,858 million on a global basis for June YTD 2018 and 2017, respectively.

 

(4) Includes Pharmaceutical products not individually shown above.

 

(5) Other Revenues are comprised primarily of Healthcare Services segment revenue, third-party manufacturing sales and miscellaneous corporate revenues, including revenue hedging activities.

 



 

MERCK & CO., INC.

PHARMACEUTICAL GEOGRAPHIC SALES
(AMOUNTS IN MILLIONS)
(UNAUDITED)
Table 3c

 

 

 

2018

 

2017

 

% Change

 

 

 

1Q

 

2Q

 

June YTD

 

1Q

 

2Q

 

June YTD

 

3Q

 

4Q

 

Full Year

 

2Q

 

TOTAL PHARMACEUTICAL

 

$

8,919

 

$

9,282

 

$

18,201

 

$

8,185

 

$

8,759

 

$

16,944

 

$

9,156

 

$

9,290

 

$

35,390

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

3,716

 

3,822

 

7,538

 

3,761

 

3,929

 

7,690

 

4,197

 

3,967

 

15,854

 

-3

 

% Pharmaceutical Sales

 

41.7

%

41.2

%

41.4

%

45.9

%

44.9

%

45.4

%

45.8

%

42.7

%

44.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe (1)

 

2,402

 

2,322

 

4,724

 

1,977

 

2,082

 

4,059

 

2,174

 

2,290

 

8,522

 

12

 

% Pharmaceutical Sales

 

26.9

%

25.0

%

26.0

%

24.2

%

23.8

%

24.0

%

23.7

%

24.7

%

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

718

 

834

 

1,552

 

688

 

818

 

1,507

 

756

 

780

 

3,043

 

2

 

% Pharmaceutical Sales

 

8.1

%

9.0

%

8.5

%

8.4

%

9.3

%

8.9

%

8.3

%

8.4

%

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

1,112

 

1,224

 

2,336

 

889

 

946

 

1,835

 

994

 

1,054

 

3,883

 

29

 

% Pharmaceutical Sales

 

12.5

%

13.2

%

12.8

%

10.9

%

10.8

%

10.8

%

10.9

%

11.3

%

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China

 

459

 

530

 

989

 

328

 

353

 

681

 

377

 

439

 

1,497

 

50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

398

 

459

 

856

 

375

 

462

 

837

 

451

 

547

 

1,836

 

-1

 

% Pharmaceutical Sales

 

4.5

%

4.9

%

4.7

%

4.6

%

5.3

%

4.9

%

4.9

%

5.9

%

5.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eastern Europe/Middle East Africa

 

335

 

356

 

691

 

255

 

314

 

569

 

349

 

397

 

1,314

 

13

 

% Pharmaceutical Sales

 

3.8

%

3.8

%

3.8

%

3.1

%

3.6

%

3.4

%

3.8

%

4.3

%

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

196

 

192

 

388

 

182

 

171

 

353

 

193

 

193

 

739

 

12

 

% Pharmaceutical Sales

 

2.2

%

2.1

%

2.1

%

2.2

%

2.0

%

2.1

%

2.1

%

2.1

%

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

42

 

73

 

116

 

58

 

37

 

94

 

42

 

62

 

199

 

97

 

% Pharmaceutical Sales

 

0.5

%

0.8

%

0.6

%

0.7

%

0.4

%

0.6

%

0.5

%

0.7

%

0.6

%

 

 

 


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

 



 

MERCK & CO., INC.

OTHER (INCOME) EXPENSE, NET - GAAP

(AMOUNTS IN MILLIONS)

(UNAUDITED)

Table 4

 

OTHER (INCOME) EXPENSE, NET

 

 

 

2Q18

 

2Q17

 

June YTD
2018

 

June YTD
2017

 

Interest income

 

$

(81

)

$

(96

)

$

(165

)

$

(194

)

Interest expense

 

194

 

193

 

379

 

375

 

Exchange losses

 

71

 

19

 

77

 

11

 

Equity (income) losses from affiliates

 

(64

)

(5

)

(12

)

8

 

Net periodic defined benefit plan (credit) cost other than service cost

 

(130

)

(131

)

(265

)

(260

)

Other, net

 

(38

)

(53

)

(354

)

(83

)

Total

 

$

(48

)

$

(73

)

$

(340

)

$

(143

)

 

On January 1, 2018, the company adopted a new accounting standard related to defined benefit plans that requires the components of net benefit cost/credit (other than service costs) be presented in the statement of income outside of operating expenses. Upon adoption, net periodic benefit cost/credit other than service cost was reclassified to Other (income) expense, net from the previous classifications within Materials and production costs, Marketing and administrative expenses and Research and development costs.  Previously reported amounts have been reclassified to conform to the new presentation. There was no impact to net income as a result of adopting the new standard.