JOHNSON & JOHNSON - FORM 8-K - EX-99.2O - EXHIBIT

Attached files

file	filename
8-K - 8-K - JOHNSON & JOHNSON	a1q20148kcover.htm
EX-99.15 - EXHIBIT - JOHNSON & JOHNSON	a1q20148kexhibit9915.htm

Exhibit 99.2O



Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	FIRST QUARTER

	2014			2013			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 18,115		100.0	$ 17,505		100.0	3.5
Cost of products sold	5,455		30.1	5,554		31.7	(1.8)
Selling, marketing and administrative expenses	5,183		28.6	5,223		29.8	(0.8)
Research and development expense	1,831		10.1	1,784		10.2	2.6
In-process research and development	18		0.1	64		0.4
Interest (income) expense, net	118		0.7	104		0.6
Other (income) expense, net	86		0.5	515		3.0
Earnings before provision for taxes on income	5,424		29.9	4,261		24.3	27.3
Provision for taxes on income	697		3.8	764		4.3	(8.8)
Net earnings	$ 4,727		26.1	$ 3,497		20.0	35.2

Net earnings per share (Diluted)	$ 1.64			$ 1.22			34.4

Average shares outstanding (Diluted)	2,874.7			2,858.8

Effective tax rate	12.9	%		17.9	%

Adjusted earnings before provision for taxes and net earnings ^{(1) (A)}
Earnings before provision for taxes on income	$ 5,560		30.7	$ 5,070		29.0	9.7
Net earnings	$ 4,426		24.4	$ 4,107		23.5	7.8
Net earnings per share (Diluted)	$ 1.54			$ 1.44			6.9
Effective tax rate	20.4	%		19.0	%

⁽¹⁾ See Reconciliation of Non-GAAP Financial Measures.

^(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. These non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses the performance of the Company. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FIRST QUARTER
			Percent Change
	2014	2013	Total		Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 1,309	1,348	(2.9)	%	(2.9)	—
International	2,248	2,327	(3.4)		0.7	(4.1)
	3,557	3,675	(3.2)		(0.6)	(2.6)

Pharmaceutical
U.S.	3,740	3,471	7.7		7.7	—
International	3,758	3,297	14.0		16.9	(2.9)
	7,498	6,768	10.8		12.2	(1.4)

Med Devices & Diagnostics
U.S.	3,155	3,206	(1.6)		(1.6)	—
International	3,905	3,856	1.3		4.6	(3.3)
	7,060	7,062	0.0		1.8	(1.8)

U.S.	8,204	8,025	2.2		2.2	—
International	9,911	9,480	4.5		7.9	(3.4)
Worldwide	$ 18,115	17,505	3.5	%	5.3	(1.8)



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FIRST QUARTER
			Percent Change
	2014	2013	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 8,204	8,025	2.2	%	2.2	—

Europe	4,885	4,481	9.0		6.6	2.4
Western Hemisphere excluding U.S.	1,695	1,783	(4.9)		7.1	(12.0)
Asia-Pacific, Africa	3,331	3,216	3.6		10.3	(6.7)
International	9,911	9,480	4.5		7.9	(3.4)

Worldwide	$ 18,115	17,505	3.5	%	5.3	(1.8)



Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

	First Quarter		% Incr. /
(Dollars in Millions Except Per Share Data)	2014	2013	(Decr.)

Earnings before provision for taxes on income - as reported	$ 5,424	4,261	27.3	%

Litigation expenses	—	529

Synthes integration/transaction costs	118	258

In-process research and development	18	64

Other	—	(42)

Earnings before provision for taxes on income - as adjusted	$ 5,560	5,070	9.7	%

Net Earnings - as reported	$ 4,727	3,497	35.2	%

Litigation expenses	—	391

Synthes integration/transaction costs	84	183

In-process research and development	13	42

Tax benefit associated with Conor Medsystems	(398)	—

Other	—	(6)

Net Earnings - as adjusted	$ 4,426	4,107	7.8	%

Diluted Net Earnings per share - as reported	$ 1.64	1.22	34.4	%

Litigation expenses	—	0.14

Synthes integration/transaction costs	0.03	0.06

In-process research and development	0.01	0.02

Tax benefit associated with Conor Medsystems	(0.14)	—

Other	—	—

Diluted Net Earnings per share - as adjusted	$ 1.54	1.44	6.9	%


The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations.



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FIRST QUARTER
				% Change
		2014	2013	Reported		Operational⁽¹⁾		Currency
CONSUMER SEGMENT ⁽²⁾

BABY CARE
US	$	102	103	(1.0	)%	(1.0	)%	—	%
Intl		443	461	(3.9	)	2.4		(6.3	)
WW		545	564	(3.4	)	1.7		(5.1	)

ORAL CARE
US		160	158	1.3		1.3		—
Intl		251	245	2.4		6.9		(4.5	)
WW		411	403	2.0		4.7		(2.7	)

OTC
US		366	354	3.4		3.4		—
Intl		645	689	(6.4	)	(3.6	)	(2.8	)
WW		1,011	1,043	(3.1	)	(1.2	)	(1.9	)

SKIN CARE
US		457	453	0.9		0.9		—
Intl		457	449	1.8		4.5		(2.7	)
WW		914	902	1.3		2.7		(1.4	)

WOMEN'S HEALTH
US		24	81	(70.4	)	(70.4	)	—
Intl		303	320	(5.3	)	1.0		(6.3	)
WW		327	401	(18.5	)	(13.4	)	(5.1	)

WOUND CARE/OTHER
US		200	199	0.5		0.5		—
Intl		149	163	(8.6	)	(6.4	)	(2.2	)
WW		349	362	(3.6	)	(2.6	)	(1.0	)

TOTAL CONSUMER
US		1,309	1,348	(2.9	)	(2.9	)	—
Intl		2,248	2,327	(3.4	)	0.7		(4.1	)
WW	$	3,557	3,675	(3.2	)%	(0.6	)%	(2.6	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FIRST QUARTER
				% Change
		2014	2013	Reported		Operational⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3)}

IMMUNOLOGY
US	$	1,547	1,639	(5.6	)%	(5.6	)%	—	%
Intl		796	565	40.9		46.6		(5.7	)
WW		2,343	2,204	6.3		7.8		(1.5	)
REMICADE
US		997	970	2.8		2.8		—
US Exports⁽⁴⁾		167	349	(52.1	)	(52.1	)	—
Intl		446	281	58.7		67.3		(8.6	)
WW		1,610	1,600	0.6		2.1		(1.5	)
SIMPONI/SIMPONI ARIA
US		104	94	10.6		10.6		—
Intl		155	143	8.4		12.3		(3.9	)
WW		259	237	9.3		11.6		(2.3	)
STELARA
US		279	226	23.5		23.5		—
Intl		177	120	47.5		48.2		(0.7	)
WW		456	346	31.8		32.0		(0.2	)
OTHER IMMUNOLOGY
US		—	—	—		—		—
Intl		18	21	(14.3	)	(5.8	)	(8.5	)
WW		18	21	(14.3	)	(5.8	)	(8.5	)

INFECTIOUS DISEASES
US		561	238	*		*		—
Intl		639	577	10.7		11.8		(1.1	)
WW		1,200	815	47.2		48.0		(0.8	)
EDURANT
US		5	3	66.7		66.7		—
Intl		76	40	90.0		86.8		3.2
WW		81	43	88.4		85.4		3.0
INCIVO
US		—	—	—		—		—
Intl		86	162	(46.9	)	(47.4	)	0.5
WW		86	162	(46.9	)	(47.4	)	0.5
OLYSIO/SOVRIAD
US		291	—	*		*		—
Intl		63	—	*		*		0.0
WW		354	—	*		*		0.0
PREZISTA
US		214	167	28.1		28.1		—
Intl		231	200	15.5		15.5		0.0
WW		445	367	21.3		21.3		0.0
OTHER INFECTIOUS DISEASES
US		51	68	(25.0	)	(25.0	)	—
Intl		183	175	4.6		5.8		(1.2	)
WW		234	243	(3.7	)	(2.8	)	(0.9	)

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FIRST QUARTER
				% Change
		2014	2013	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

NEUROSCIENCE
US	$	601	746	(19.4	)%	(19.4	)%	—	%
Intl		1,037	998	3.9		7.6		(3.7	)
WW		1,638	1,744	(6.1	)	(4.0	)	(2.1	)
CONCERTA/METHYLPHENIDATE
US		35	139	(74.8	)	(74.8	)	—
Intl		115	117	(1.7	)	2.9		(4.6	)
WW		150	256	(41.4	)	(39.3	)	(2.1	)
INVEGA
US		86	71	21.1		21.1		—
Intl		79	61	29.5		34.0		(4.5	)
WW		165	132	25.0		27.1		(2.1	)
INVEGA SUSTENNA/XEPLION
US		182	164	11.0		11.0		—
Intl		191	120	59.2		60.7		(1.5	)
WW		373	284	31.3		31.9		(0.6	)
RISPERDAL CONSTA
US		106	106	0.0		0.0		—
Intl		204	229	(10.9	)	(9.1	)	(1.8	)
WW		310	335	(7.5	)	(6.3	)	(1.2	)
OTHER NEUROSCIENCE
US		192	266	(27.8	)	(27.8	)	—
Intl		448	471	(4.9	)	0.1		(5.0	)
WW		640	737	(13.2	)	(10.0	)	(3.2	)

ONCOLOGY
US		240	199	20.6		20.6		—
Intl		782	595	31.4		33.4		(2.0	)
WW		1,022	794	28.7		30.2		(1.5	)
VELCADE
US		—	—	—		—		—
Intl		408	353	15.6		18.6		(3.0	)
WW		408	353	15.6		18.6		(3.0	)
ZYTIGA
US		229	161	42.2		42.2		—
Intl		283	183	54.6		54.6		0.0
WW		512	344	48.8		48.8		0.0
OTHER ONCOLOGY
US		11	38	(71.1	)	(71.1	)	—
Intl		91	59	54.2		56.0		(1.8	)
WW		102	97	5.2		6.3		(1.1	)
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FIRST QUARTER
				% Change
		2014	2013	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

TOTAL OTHER
US	$	791	649	21.9	%	21.9	%	—	%
Intl		504	562	(10.3	)	(8.7	)	(1.6	)
WW		1,295	1,211	6.9		7.6		(0.7	)
PROCRIT/EPREX
US		176	233	(24.5	)	(24.5	)	—
Intl		134	145	(7.6	)	(6.6	)	(1.0	)
WW		310	378	(18.0	)	(17.6	)	(0.4	)
XARELTO
US		319	158	*		*		—
Intl		—	—	—		—		—
WW		319	158	*		*		—
OTHER
US		296	258	14.7		14.7		—
Intl		370	417	(11.3	)	(9.6	)	(1.7	)
WW		666	675	(1.3	)	(0.2	)	(1.1	)

TOTAL PHARMACEUTICAL
US		3,740	3,471	7.7		7.7		—
Intl		3,758	3,297	14.0		16.9		(2.9	)
WW	$	7,498	6,768	10.8	%	12.2	%	(1.4	)%



Supplemental Sales Information		2013
		Q1	Q2	Q3	Q4	Full Year
EDURANT
US		3	3	4	5	15
Intl		40	53	60	68	221
WW	$	43	56	64	73	236

OLYSIO/SOVRIAD
US		—	—	—	13	13
Intl		—	—	—	10	10
WW	$	—	—	—	23	23

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FIRST QUARTER
				% Change
		2014	2013	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES AND DIAGNOSTICS ^{(2) (3)}

CARDIOVASCULAR CARE
US	$	205	198	3.5	%	3.5	%	—	%
Intl		336	315	6.7		9.4		(2.7	)
WW		541	513	5.5		7.2		(1.7	)

DIABETES CARE
US		192	283	(32.2	)	(32.2	)	—
Intl		320	317	0.9		2.9		(2.0	)
WW		512	600	(14.7	)	(13.7	)	(1.0	)

DIAGNOSTICS
US		224	248	(9.7	)	(9.7	)	—
Intl		219	229	(4.4	)	(0.9	)	(3.5	)
WW		443	477	(7.1	)	(5.4	)	(1.7	)

ORTHOPAEDICS
US		1,292	1,261	2.5		2.5		—
Intl		1,129	1,124	0.4		2.9		(2.5	)
WW		2,421	2,385	1.5		2.7		(1.2	)

SPECIALTY SURGERY/OTHER ⁽⁵⁾
US		417	404	3.2		3.2		—
Intl		457	435	5.1		9.3		(4.2	)
WW		874	839	4.2		6.4		(2.2	)

SURGICAL CARE
US		539	531	1.5		1.5		—
Intl		969	977	(0.8	)	2.2		(3.0	)
WW		1,508	1,508	0.0		1.9		(1.9	)

VISION CARE
US		286	281	1.8		1.8		—
Intl		475	459	3.5		10.0		(6.5	)
WW		761	740	2.8		6.8		(4.0	)

TOTAL MEDICAL DEVICES AND DIAGNOSTICS
US		3,155	3,206	(1.6	)	(1.6	)	—
Intl		3,905	3,856	1.3		4.6		(3.3	)
WW	$	7,060	7,062	0.0	%	1.8	%	(1.8	)%

*Percentage greater than 100%
⁽¹⁾Operational growth excludes the effect of translational currency
⁽²⁾ Unaudited
⁽³⁾Prior year amounts have been reclassified to conform to current year product disclosure
⁽⁴⁾Reported as U.S. sales
⁽⁵⁾ Infection Prevention now reflected in Specialty Surgery/Other, previously reported independently

Attached files

Stock widget

Investing forum

JOHNSON & JOHNSON Reports

JOHNSON & JOHNSON - FORM 8-K - EX-99.2O - EXHIBIT - April 15, 2014

Attached files

Stock widget

Investing forum

JOHNSON & JOHNSON Reports