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

Attached files

file	filename
8-K - 8-K - JOHNSON & JOHNSON	a8kcover2016q4.htm
EX-99.15 - EXHIBIT 99.15 - JOHNSON & JOHNSON	a8k2016q4exhibit9915.htm

Exhibit 99.2O



Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

	2016			2015					Percent
			Percent				Percent		Increase
	Amount		to Sales	Amount			to Sales		(Decrease)
Sales to customers	$ 18,106		100.0	$ 17,811			100.0		1.7
Cost of products sold	5,534		30.5	5,673			31.8		(2.5	)
Selling, marketing and administrative expenses	5,309		29.3	5,891			33.1		(9.9	)
Research and development expense	2,640		14.6	2,864			16.1		(7.8	)
In-process research and development	—		—	214			1.2
Interest (income) expense, net	84		0.5	107			0.6
Other (income) expense, net	20		0.1	(1,205	)		(6.8	)
Restructuring	195		1.1	509			2.9
Earnings before provision for taxes on income	4,324		23.9	3,758			21.1		15.1
Provision for taxes on income	510		2.8	543			3.0		(6.1	)
Net earnings	$ 3,814		21.1	$ 3,215			18.1		18.6

Net earnings per share (Diluted)	$ 1.38			$ 1.15					20.0

Average shares outstanding (Diluted)	2,764.5			2,803.3

Effective tax rate	11.8	%		14.4		%

Adjusted earnings before provision for taxes and net earnings^{(1) (A)}
Earnings before provision for taxes on income	$ 5,103		28.2	$ 4,913			27.6		3.9
Net earnings	$ 4,361		24.1	$ 4,043			22.7		7.9
Net earnings per share (Diluted)	$ 1.58			$ 1.44					9.7
Effective tax rate	14.5	%		17.7		%

⁽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 intangible asset amortization expense, 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. 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 intangible asset amortization expense, the effects of an acquisition, the Ortho-Clinical Diagnostics divestiture, 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
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	TWELVE MONTHS

	2016			2015					Percent
			Percent				Percent		Increase
	Amount		to Sales	Amount			to Sales		(Decrease)
Sales to customers	$ 71,890		100.0	$ 70,074			100.0		2.6
Cost of products sold	21,685		30.2	21,536			30.7		0.7
Selling, marketing and administrative expenses	19,945		27.7	21,203			30.3		(5.9	)
Research and development expense	9,095		12.7	9,046			12.9		0.5
In-process research and development	29		0.0	224			0.3
Interest (income) expense, net	358		0.5	424			0.6
Other (income) expense, net	484		0.7	(2,064	)		(2.9	)
Restructuring	491		0.7	509			0.7
Earnings before provision for taxes on income	19,803		27.5	19,196			27.4		3.2
Provision for taxes on income	3,263		4.5	3,787			5.4		(13.8	)
Net earnings	$ 16,540		23.0	$ 15,409			22.0		7.3

Net earnings per share (Diluted)	$ 5.93			$ 5.48					8.2

Average shares outstanding (Diluted)	2,788.9			2,812.9

Effective tax rate	16.5	%		19.7		%

Adjusted earnings before provision for taxes and net earnings ^{(1) (A)}
Earnings before provision for taxes on income	$ 22,759		31.7	$ 22,003			31.4		3.4
Net earnings	$ 18,764		26.1	$ 17,445			24.9		7.6
Net earnings per share (Diluted)	$ 6.73			$ 6.20					8.5
Effective tax rate	17.6	%		20.7		%

⁽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 intangible asset amortization expense, 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. 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 intangible asset amortization expense, the effects of an acquisition, the Ortho-Clinical Diagnostics divestiture, 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)	FOURTH QUARTER
			Percent Change
	2016	2015	Total			Operations		Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 1,387	1,231	12.7		%	12.7		—
International	2,045	2,089	(2.1	)		0.2		(2.3	)
	3,432	3,320	3.4			4.9		(1.5	)

Pharmaceutical
U.S.	5,002	4,910	1.9			1.9		—
International	3,230	3,154	2.4			3.7		(1.3	)
	8,232	8,064	2.1			2.6		(0.5	)

Medical Devices
U.S.	3,148	3,152	(0.1	)		(0.1	)	—
International	3,294	3,275	0.6			1.3		(0.7	)
	6,442	6,427	0.2			0.6		(0.4	)

U.S.	9,537	9,293	2.6			2.6		—
International	8,569	8,518	0.6			1.9		(1.3	)
Worldwide	$ 18,106	17,811	1.7		%	2.3		(0.6	)



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	TWELVE MONTHS
			Percent Change
	2016	2015	Total			Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 5,420	5,222	3.8		%	3.8	—
International	7,887	8,285	(4.8	)		0.1	(4.9	)
	13,307	13,507	(1.5	)		1.5	(3.0	)

Pharmaceutical
U.S.	20,125	18,333	9.8			9.8	—
International	13,339	13,097	1.8			4.0	(2.2	)
	33,464	31,430	6.5			7.4	(0.9	)

Medical Devices
U.S.	12,266	12,132	1.1			1.1	—
International	12,853	13,005	(1.2	)		0.7	(1.9	)
	25,119	25,137	(0.1	)		0.9	(1.0	)

U.S.	37,811	35,687	6.0			6.0	—
International	34,079	34,387	(0.9	)		1.8	(2.7	)
Worldwide	$ 71,890	70,074	2.6		%	3.9	(1.3	)



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FOURTH QUARTER
			Percent Change
	2016	2015	Total		Operations		Currency
Sales to customers by
geographic area

U.S.	$ 9,537	9,293	2.6	%	2.6		—

Europe	4,001	4,002	0.0		3.9		(3.9	)
Western Hemisphere excluding U.S.	1,465	1,442	1.6		2.4		(0.8	)
Asia-Pacific, Africa	3,103	3,074	0.9		(0.9	)	1.8
International	8,569	8,518	0.6		1.9		(1.3	)

Worldwide	$ 18,106	17,811	1.7	%	2.3		(0.6	)



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	TWELVE MONTHS
			Percent Change
	2016	2015	Total			Operations	Currency
Sales to customers by
geographic area

U.S.	$ 37,811	35,687	6.0		%	6.0	—

Europe	15,770	15,995	(1.4	)		1.4	(2.8	)
Western Hemisphere excluding U.S.	5,734	6,045	(5.1	)		4.0	(9.1	)
Asia-Pacific, Africa	12,575	12,347	1.8			1.4	0.4
International	34,079	34,387	(0.9	)		1.8	(2.7	)

Worldwide	$ 71,890	70,074	2.6		%	3.9	(1.3	)



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

	Fourth Quarter		% Incr. /
(Dollars in Millions Except Per Share Data)	2016	2015	(Decr.)

Earnings before provision for taxes on income - as reported	$ 4,324	3,758	15.1	%

Intangible asset amortization expense	344	301

Restructuring/Other⁽¹⁾	298	590

Litigation expense, net	96	—

DePuy ASR^TM Hip program	9	—

In-process research and development	—	214

Other	32	50

Earnings before provision for taxes on income - as adjusted	$ 5,103	4,913	3.9	%

Net Earnings - as reported	$ 3,814	3,215	18.6	%

Intangible asset amortization expense	252	220

Restructuring/Other	251	415

Litigation expense, net	80	—

DePuy ASR^TM Hip program	7	—

In-process research and development	—	156

Other	(43)	37

Net Earnings - as adjusted	$ 4,361	4,043	7.9	%

Diluted Net Earnings per share - as reported	$ 1.38	1.15	20.0	%

Intangible asset amortization expense	0.09	0.07

Restructuring/Other	0.09	0.15

Litigation expense, net	0.03	—

DePuy ASR^TM Hip program	—	—

In-process research and development	—	0.06

Other	(0.01)	0.01

Diluted Net Earnings per share - as adjusted	$ 1.58	1.44	9.7	%

Operational Diluted Net Earnings per share - as adjusted at 2014 foreign currency exchange rates		1.54

Impact of currency at 2015 foreign currency exchange rates	0.01	(0.10)

Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates	$ 1.59	1.44	10.4	%


⁽¹⁾ Includes $18M recorded in cost of products sold and $85M recorded in other (income) expense for the fourth quarter 2016, and $81M recorded in cost of products sold for the fourth quarter 2015.



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

	Twelve Months		% Incr. /
(Dollars in Millions Except Per Share Data)	2016	2015	(Decr.)

Earnings before provision for taxes on income - as reported	$ 19,803	19,196	3.2	%

Intangible asset amortization expense	1,271	1,570

Restructuring/Other⁽¹⁾	685	590

Litigation expense, net	817	141

DePuy ASR^TM Hip program	9	148

In-process research and development	29	224

Other	145	134

Earnings before provision for taxes on income - as adjusted	$ 22,759	22,003	3.4	%

Net Earnings - as reported	$ 16,540	15,409	7.3	%

Intangible asset amortization expense	931	1,113

Restructuring/Other	544	415

Litigation expense, net	675	118

DePuy ASR^TM Hip program	7	130

In-process research and development	23	162

Other	44	98

Net Earnings - as adjusted	$ 18,764	17,445	7.6	%

Diluted Net Earnings per share - as reported	$ 5.93	5.48	8.2	%

Intangible asset amortization expense	0.33	0.39

Restructuring/Other	0.20	0.15

Litigation expense, net	0.24	0.04

DePuy ASR^TM Hip program	—	0.05

In-process research and development	0.01	0.06

Other	0.02	0.03

Diluted Net Earnings per share - as adjusted	$ 6.73	6.20	8.5	%

Operational Diluted Net Earnings per share - as adjusted at 2014 foreign currency exchange rates		6.76

Impact of currency at 2015 foreign currency exchange rates	0.05	(0.56)

Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates	$ 6.78	6.20	9.4	%


⁽¹⁾ Includes $45M recorded in cost of products sold and $149M recorded in other (income) expense for twelve months YTD 2016, and $81M recorded in cost of products sold for twelve months YTD 2015.



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

Operational Sales Growth Excluding Acquisitions, Divestitures, Hepatitis C, ⁽¹⁾ Venezuela and Additional 2015 Shipping Days ^(A)
FOURTH QUARTER 2016 ACTUAL vs. 2015 ACTUAL

Segments

	Consumer	Pharmaceutical	Medical Devices	Total
	Operational % ⁽²⁾
WW As Reported:	4.9%	2.6%	0.6%	2.3%
U.S.	12.7%	1.9%	(0.1)%	2.6%
International	0.2%	3.7%	1.3%	1.9%

Wound Care/Other
SPLENDA^®	0.5			0.1
U.S.	0.0			0.0
International	0.8			0.2

Cardiovascular
Cordis			0.0	0.0
U.S.			0.1	0.0
International			(0.1)	0.0

Beauty
Vogue	(2.7)			(0.5)
U.S.	(5.7)			(0.8)
International	(1.0)			(0.3)

Other Neuroscience
Controlled Substance Raw Material and API Business		1.2		0.5
U.S.		1.4		0.8
International		0.8		0.3

All Other Acquisitions and Divestitures	(0.1)	0.0	0.3	0.1
U.S.	(0.3)	(0.1)	(0.4)	(0.2)
International	0.1	0.0	1.0	0.4

WW Ops excluding Acquisitions and Divestitures	2.6%	3.8%	0.9%	2.5%
U.S.	6.7%	3.2%	(0.4)%	2.4%
International	0.1%	4.5%	2.2%	2.5%

Hepatitis C		0.4		0.2
U.S.		(0.1)		0.0
International		1.2		0.5

Venezuela	0.4	0.0	0.1	0.1
U.S.	0.0	0.0	0.0	0.0
International	0.7	0.2	0.2	0.3

Additional 2015 Shipping Days*	4.6	5.7	3.7	4.8
U.S.	7.0	8.7	4.9	7.1
International	3.3	1.2	2.6	2.3

WW Ops excluding Acquisitions, Divestitures, Hepatitis C, Venezuela
and Additional 2015 Shipping Days	7.6%	9.9%	4.7%	7.6%
U.S.	13.7%	11.8%	4.5%	9.5%
International	4.1%	7.1%	5.0%	5.6%

⁽¹⁾Hepatitis C products include OLYSIO^®/SOVRIAD^® and INCIVO^{® (2)} Operational growth excludes the effect of translational currency

*The Company follows the concept of a fiscal year, which ends on the Sunday nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists of 53 weeks, as was the case in 2015.



^(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela and additional 2015 shipping days” is a non-GAAP financial measure. 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. Due to the magnitude of hepatitis C product sales over a short timeframe, the variable nature of acquisitions and divestitures, and instability in Venezuela and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.



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

Operational Sales Growth Excluding Acquisitions, Divestitures, Hepatitis C, ⁽¹⁾ Venezuela and Additional 2015 Shipping Days ^(A)
TWELVE MONTHS 2016 ACTUAL vs. 2015 ACTUAL

Segments

	Consumer	Pharmaceutical	Medical Devices	Total
	Operational % ⁽²⁾
WW As Reported:	1.5%	7.4%	0.9%	3.9%
U.S.	3.8%	9.8%	1.1%	6.0%
International	0.1%	4.0%	0.7%	1.8%

Wound Care/Other
SPLENDA^®	1.8			0.3
U.S.	3.4			0.5
International	0.8			0.2

Cardiovascular
Cordis			1.7	0.7
U.S.			0.8	0.3
International			2.6	1.0

Beauty	(1.2)
Vogue	(2.8)			(0.2)
U.S.	(0.3)			(0.4)
International				0.0

Other Neuroscience
Controlled Substance Raw Material and API Business		0.5		0.2
U.S.		0.7		0.3
International		0.2		0.1

All Other Acquisitions and Divestitures	(0.1)	0.1	0.1	0.1
U.S.	(0.3)	0.2	(0.2)	0.0
International	0.1	0.1	0.3	0.1

WW Ops excluding Acquisitions and Divestitures	2.0%	8.0%	2.7%	5.0%
U.S.	4.1%	10.7%	1.7%	6.7%
International	0.7%	4.3%	3.6%	3.2%

Hepatitis C		1.9		0.8
U.S.		0.7		0.4
International		3.4		1.2

Venezuela	1.2	0.1	0.2	0.3
U.S.	0.0	0.0	0.0	0.0
International	1.9	0.3	0.4	0.7

Additional 2015 Shipping Days*	1.1	1.5	0.9	1.3
U.S.	1.5	2.4	1.2	1.8
International	0.8	0.3	0.7	0.6

WW Ops excluding Acquisitions, Divestitures, Hepatitis C, Venezuela
and Additional 2015 Shipping Days	4.3%	11.5%	3.8%	7.4%
U.S.	5.6%	13.8%	2.9%	8.9%
International	3.4%	8.3%	4.7%	5.7%

⁽¹⁾ Hepatitis C products include OLYSIO^®/SOVRIAD^® and INCIVO^{® (2)} Operational growth excludes the effect of translational currency

*The Company follows the concept of a fiscal year, which ends on the Sunday nearest to the end of the month of December. Normally each fiscal year consists of 52 weeks, but every five or six years the fiscal year consists of 53 weeks, as was the case in 2015.



^(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela and additional 2015 shipping days” is a non-GAAP financial measure. 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. Due to the magnitude of hepatitis C product sales over a short timeframe, the variable nature of acquisitions and divestitures, and instability in Venezuela and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2016	2015	Reported		Operational⁽¹⁾		Currency
CONSUMER SEGMENT^{(2) (3)}

BABY CARE
US	$	123	126	(2.4	)%	(2.4	)%	—	%
Intl		370	387	(4.4	)	(2.2	)	(2.2	)
WW		493	513	(3.9	)	(2.3	)	(1.6	)

BEAUTY
US		580	442	31.2		31.2		—
Intl		483	461	4.8		6.7		(1.9	)
WW		1,063	903	17.7		18.7		(1.0	)

ORAL CARE
US		163	170	(4.1	)	(4.1	)	—
Intl		234	238	(1.7	)	0.2		(1.9	)
WW		397	408	(2.7	)	(1.6	)	(1.1	)

OTC
US		418	386	8.3		8.3		—
Intl		621	632	(1.7	)	1.5		(3.2	)
WW		1,039	1,018	2.1		4.1		(2.0	)

WOMEN'S HEALTH
US		3	7	(57.1	)	(57.1	)	—
Intl		261	276	(5.4	)	(3.1	)	(2.3	)
WW		264	283	(6.7	)	(4.4	)	(2.3	)

WOUND CARE/OTHER
US		100	100	0.0		0.0		—
Intl		76	95	(20.0	)	(19.6	)	(0.4	)
WW		176	195	(9.7	)	(9.5	)	(0.2	)

TOTAL CONSUMER
US		1,387	1,231	12.7		12.7		—
Intl		2,045	2,089	(2.1	)	0.2		(2.3	)
WW	$	3,432	3,320	3.4	%	4.9	%	(1.5	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
					% Change
		2016	2015		Reported		Operational⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3)}

IMMUNOLOGY
US	$	2,157	2,101		2.7	%	2.7	%	—	%
Intl		779	670		16.3		16.9		(0.6	)
WW		2,936	2,771		6.0		6.1		(0.1	)
REMICADE
US		1,173	1,193		(1.7	)	(1.7	)	—
US Exports⁽⁴⁾		109	180		(39.4	)	(39.4	)	—
Intl		342	307		11.4		11.9		(0.5	)
WW		1,624	1,680		(3.3	)	(3.2	)	(0.1	)
SIMPONI / SIMPONI ARIA
US		243	204		19.1		19.1		—
Intl		183	136		34.6		32.7		1.9
WW		426	340		25.3		24.5		0.8
STELARA
US		632	524		20.6		20.6		—
Intl		247	218		13.3		15.6		(2.3	)
WW		879	742		18.5		19.2		(0.7	)
OTHER IMMUNOLOGY
US		—	—		—		—		—
Intl		7	9		(22.2	)	(20.6	)	(1.6	)
WW		7	9		(22.2	)	(20.6	)	(1.6	)

INFECTIOUS DISEASES
US		354	363		(2.5	)	(2.5	)	—
Intl		407	438		(7.1	)	(5.0	)	(2.1	)
WW		761	801		(5.0	)	(3.9	)	(1.1	)
EDURANT
US		14	12		16.7		16.7		—
Intl		151	95		58.9		60.7		(1.8	)
WW		165	107		54.2		55.8		(1.6	)
OLYSIO / SOVRIAD
US		5	(1	)	**		**		—
Intl		5	45		(88.9	)	(88.1	)	(0.8	)
WW		10	44		(77.3	)	(76.5	)	(0.8	)
PREZISTA / PREZCOBIX / REZOLSTA
US		283	287		(1.4	)	(1.4	)	—
Intl		164	180		(8.9	)	(6.0	)	(2.9	)
WW		447	467		(4.3	)	(3.2	)	(1.1	)
OTHER INFECTIOUS DISEASES
US		52	65		(20.0	)	(20.0	)	—
Intl		87	118		(26.3	)	(24.9	)	(1.4	)
WW		139	183		(24.0	)	(23.1	)	(0.9	)

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

NEUROSCIENCE
US	$	631	752	(16.1	)%	(16.1	)%	—	%
Intl		839	849	(1.2	)	(1.2	)	0.0
WW		1,470	1,601	(8.2	)	(8.2	)	0.0
CONCERTA / METHYLPHENIDATE
US		103	117	(12.0	)	(12.0	)	—
Intl		101	96	5.2		5.8		(0.6	)
WW		204	213	(4.2	)	(3.9	)	(0.3	)
INVEGA / PALIPERIDONE
US		—	58	**		**		—
Intl		56	55	1.8		0.2		1.6
WW		56	113	(50.4	)	(51.1	)	0.7
INVEGA SUSTENNA / XEPLION / TRINZA
US		360	327	10.1		10.1		—
Intl		225	197	14.2		15.8		(1.6	)
WW		585	524	11.6		12.2		(0.6	)
RISPERDAL CONSTA
US		92	103	(10.7	)	(10.7	)	—
Intl		118	131	(9.9	)	(8.6	)	(1.3	)
WW		210	234	(10.3	)	(9.5	)	(0.8	)
OTHER NEUROSCIENCE
US		76	147	(48.3	)	(48.3	)	—
Intl		339	370	(8.4	)	(9.8	)	1.4
WW		415	517	(19.7	)	(20.7	)	1.0

ONCOLOGY
US		595	457	30.2		30.2		—
Intl		867	816	6.3		8.1		(1.8	)
WW		1,462	1,273	14.8		15.9		(1.1	)
DARZALEX
US		151	20	*		*		—
Intl		49	—	*		*		0.0
WW		200	20	*		*		0.0
IMBRUVICA
US		158	122	29.5		29.5		—
Intl		188	113	66.4		72.2		(5.8	)
WW		346	235	47.2		50.0		(2.8	)
VELCADE
US		—	—	—		—		—
Intl		274	321	(14.6	)	(12.6	)	(2.0	)
WW		274	321	(14.6	)	(12.6	)	(2.0	)
ZYTIGA
US		249	286	(12.9	)	(12.9	)	—
Intl		270	295	(8.5	)	(9.0	)	0.5
WW		519	581	(10.7	)	(11.0	)	0.3
OTHER ONCOLOGY
US		37	29	27.6		27.6		—
Intl		86	87	(1.1	)	1.3		(2.4	)
WW		123	116	6.0		7.8		(1.8	)
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

CARDIOVASCULAR / METABOLISM / OTHER
US	$	1,265	1,237	2.3	%	2.3	%	—	%
Intl		338	381	(11.3	)	(7.8	)	(3.5	)
WW		1,603	1,618	(0.9	)	(0.1	)	(0.8	)
XARELTO
US		598	494	21.1		21.1		—
Intl		—	—	—		—		—
WW		598	494	21.1		21.1		—
INVOKANA / INVOKAMET
US		334	348	(4.0	)	(4.0	)	—
Intl		37	24	54.2		60.3		(6.1	)
WW		371	372	(0.3	)	0.1		(0.4	)
PROCRIT / EPREX
US		186	173	7.5		7.5		—
Intl		73	87	(16.1	)	(14.5	)	(1.6	)
WW		259	260	(0.4	)	0.1		(0.5	)
OTHER
US		147	222	(33.8	)	(33.8	)	—
Intl		228	270	(15.6	)	(11.7	)	(3.9	)
WW		375	492	(23.8	)	(21.6	)	(2.2	)

TOTAL PHARMACEUTICAL
US		5,002	4,910	1.9		1.9		—
Intl		3,230	3,154	2.4		3.7		(1.3	)
WW	$	8,232	8,064	2.1	%	2.6	%	(0.5	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ⁽²⁾

CARDIOVASCULAR
US	$	247	229	7.9	%	7.9	%	—	%
Intl		238	210	13.3		12.4		0.9
WW		485	439	10.5		10.1		0.4

DIABETES CARE
US		191	202	(5.4	)	(5.4	)	—
Intl		271	278	(2.5	)	(1.1	)	(1.4	)
WW		462	480	(3.8	)	(3.0	)	(0.8	)

DIAGNOSTICS
US		—	—	—		—		—
Intl		—	24	**		**		**
WW		—	24	**		**		**

ORTHOPAEDICS
US		1,422	1,438	(1.1	)	(1.1	)	—
Intl		965	985	(2.0	)	(0.6	)	(1.4	)
WW		2,387	2,423	(1.5	)	(0.9	)	(0.6	)

HIPS
US		208	213	(2.3	)	(2.3	)	—
Intl		142	141	0.7		3.2		(2.5	)
WW		350	354	(1.1	)	(0.1	)	(1.0	)

KNEES
US		247	254	(2.8	)	(2.8	)	—
Intl		148	151	(2.0	)	0.9		(2.9	)
WW		395	405	(2.5	)	(1.4	)	(1.1	)

TRAUMA
US		394	379	4.0		4.0		—
Intl		260	265	(1.9	)	(1.2	)	(0.7	)
WW		654	644	1.6		1.9		(0.3	)

SPINE & OTHER
US		573	592	(3.2	)	(3.2	)	—
Intl		415	428	(3.0	)	(2.1	)	(0.9	)
WW		988	1,020	(3.1	)	(2.7	)	(0.4	)

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ^{(2) (Continued)}

SURGERY
US	$	1,023	1,044	(2.0	)%	(2.0	)%	—
Intl		1,364	1,369	(0.4	)	0.8		(1.2	)
WW		2,387	2,413	(1.1	)	(0.4	)	(0.7	)

ADVANCED
US		393	384	2.3		2.3		—
Intl		515	486	6.0		7.4		(1.4	)
WW		908	870	4.4		5.2		(0.8	)

GENERAL
US		415	430	(3.5	)	(3.5	)	—
Intl		687	717	(4.2	)	(2.9	)	(1.3	)
WW		1,102	1,147	(3.9	)	(3.1	)	(0.8	)

SPECIALTY
US		215	230	(6.5	)	(6.5	)	—
Intl		162	166	(2.4	)	(2.5	)	0.1
WW		377	396	(4.8	)	(4.8	)	0.0

VISION CARE
US		265	239	10.9		10.9		—
Intl		456	409	11.5		9.9		1.6
WW		721	648	11.3		10.3		1.0

TOTAL MEDICAL DEVICES
US		3,148	3,152	(0.1	)	(0.1	)	—
Intl		3,294	3,275	0.6		1.3		(0.7	)
WW	$	6,442	6,427	0.2	%	0.6	%	(0.4	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational⁽¹⁾		Currency
CONSUMER SEGMENT^{(2) (3)}

BABY CARE
US	$	488	514	(5.1	)%	(5.1	)%	—	%
Intl		1,513	1,643	(7.9	)	(2.0	)	(5.9	)
WW		2,001	2,157	(7.2	)	(2.7	)	(4.5	)

BEAUTY
US		2,135	1,861	14.7		14.7		—
Intl		1,762	1,772	(0.6	)	3.7		(4.3	)
WW		3,897	3,633	7.3		9.4		(2.1	)

ORAL CARE
US		648	629	3.0		3.0		—
Intl		920	951	(3.3	)	1.4		(4.7	)
WW		1,568	1,580	(0.8	)	2.0		(2.8	)

OTC
US		1,675	1,565	7.0		7.0		—
Intl		2,302	2,330	(1.2	)	3.4		(4.6	)
WW		3,977	3,895	2.1		4.8		(2.7	)

WOMEN'S HEALTH
US		19	26	(26.9	)	(26.9	)	—
Intl		1,048	1,174	(10.7	)	(4.6	)	(6.1	)
WW		1,067	1,200	(11.1	)	(5.1	)	(6.0	)

WOUND CARE/OTHER
US		455	627	(27.4	)	(27.4	)	—
Intl		342	415	(17.6	)	(14.7	)	(2.9	)
WW		797	1,042	(23.5	)	(22.3	)	(1.2	)

TOTAL CONSUMER
US		5,420	5,222	3.8		3.8		—
Intl		7,887	8,285	(4.8	)	0.1		(4.9	)
WW	$	13,307	13,507	(1.5	)%	1.5	%	(3.0	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3)}

IMMUNOLOGY
US	$	8,846	7,642	15.8	%	15.8	%	—	%
Intl		3,122	2,760	13.1		15.9		(2.8	)
WW		11,968	10,402	15.1		15.9		(0.8	)
REMICADE
US		4,842	4,453	8.7		8.7		—
US Exports⁽⁴⁾		782	782	0.0		0.0		—
Intl		1,342	1,326	1.2		5.4		(4.2	)
WW		6,966	6,561	6.2		7.0		(0.8	)
SIMPONI / SIMPONI ARIA
US		959	730	31.4		31.4		—
Intl		786	598	31.4		31.6		(0.2	)
WW		1,745	1,328	31.4		31.5		(0.1	)
STELARA
US		2,263	1,677	34.9		34.9		—
Intl		969	797	21.6		24.0		(2.4	)
WW		3,232	2,474	30.6		31.4		(0.8	)
OTHER IMMUNOLOGY
US		—	—	—		—		—
Intl		25	39	(35.9	)	(30.1	)	(5.8	)
WW		25	39	(35.9	)	(30.1	)	(5.8	)

INFECTIOUS DISEASES
US		1,461	1,535	(4.8	)	(4.8	)	—
Intl		1,747	2,121	(17.6	)	(15.7	)	(1.9	)
WW		3,208	3,656	(12.3	)	(11.2	)	(1.1	)
EDURANT
US		52	41	26.8		26.8		—
Intl		521	369	41.2		41.9		(0.7	)
WW		573	410	39.8		40.4		(0.6	)
OLYSIO / SOVRIAD
US		55	173	(68.2	)	(68.2	)	—
Intl		51	448	(88.6	)	(88.1	)	(0.5	)
WW		106	621	(82.9	)	(82.6	)	(0.3	)
PREZISTA / PREZCOBIX / REZOLSTA
US		1,143	1,064	7.4		7.4		—
Intl		708	746	(5.1	)	(2.3	)	(2.8	)
WW		1,851	1,810	2.3		3.5		(1.2	)
OTHER INFECTIOUS DISEASES
US		211	257	(17.9	)	(17.9	)	—
Intl		467	558	(16.3	)	(13.6	)	(2.7	)
WW		678	815	(16.8	)	(15.0	)	(1.8	)

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

NEUROSCIENCE
US	$	2,628	2,850	(7.8	)%	(7.8	)%	—	%
Intl		3,457	3,409	1.4		2.3		(0.9	)
WW		6,085	6,259	(2.8	)	(2.3	)	(0.5	)
CONCERTA / METHYLPHENIDATE
US		468	434	7.8		7.8		—
Intl		395	387	2.1		4.8		(2.7	)
WW		863	821	5.1		6.4		(1.3	)
INVEGA / PALIPERIDONE
US		70	339	(79.4	)	(79.4	)	—
Intl		241	234	3.0		2.1		0.9
WW		311	573	(45.7	)	(46.1	)	0.4
INVEGA SUSTENNA / XEPLION / TRINZA
US		1,343	1,085	23.8		23.8		—
Intl		871	745	16.9		18.7		(1.8	)
WW		2,214	1,830	21.0		21.7		(0.7	)
RISPERDAL CONSTA
US		381	409	(6.8	)	(6.8	)	—
Intl		512	561	(8.7	)	(7.4	)	(1.3	)
WW		893	970	(7.9	)	(7.1	)	(0.8	)
OTHER NEUROSCIENCE
US		366	583	(37.2	)	(37.2	)	—
Intl		1,438	1,482	(3.0	)	(2.9	)	(0.1	)
WW		1,804	2,065	(12.6	)	(12.5	)	(0.1	)

ONCOLOGY
US		2,335	1,547	50.9		50.9		—
Intl		3,472	3,148	10.3		12.6		(2.3	)
WW		5,807	4,695	23.7		25.2		(1.5	)
DARZALEX
US		471	20	*		*		—
Intl		101	—	*		*		0.0
WW		572	20	*		*		0.0
IMBRUVICA
US		613	375	63.5		63.5		—
Intl		638	314	*		*		(6.3	)
WW		1,251	689	81.6		84.5		(2.9	)
VELCADE
US		—	—	—		—		—
Intl		1,224	1,333	(8.2	)	(5.9	)	(2.3	)
WW		1,224	1,333	(8.2	)	(5.9	)	(2.3	)
ZYTIGA
US		1,089	1,070	1.8		1.8		—
Intl		1,171	1,161	0.9		1.8		(0.9	)
WW		2,260	2,231	1.3		1.8		(0.5	)
OTHER ONCOLOGY
US		162	82	97.6		97.6		—
Intl		338	340	(0.6	)	2.1		(2.7	)
WW		500	422	18.5		20.6		(2.1	)
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

CARDIOVASCULAR / METABOLISM / OTHER
US	$	4,855	4,759	2.0	%	2.0	%	—	%
Intl		1,541	1,659	(7.1	)	(2.9	)	(4.2	)
WW		6,396	6,418	(0.3	)	0.8		(1.1	)
XARELTO
US		2,288	1,868	22.5		22.5		—
Intl		—	—	—		—		—
WW		2,288	1,868	22.5		22.5		—
INVOKANA / INVOKAMET
US		1,273	1,238	2.8		2.8		—
Intl		134	70	91.4		*		(9.7	)
WW		1,407	1,308	7.6		8.1		(0.5	)
PROCRIT / EPREX
US		767	692	10.8		10.8		—
Intl		338	376	(10.1	)	(7.6	)	(2.5	)
WW		1,105	1,068	3.5		4.4		(0.9	)
OTHER
US		527	961	(45.2	)	(45.2	)	—
Intl		1,069	1,213	(11.9	)	(7.5	)	(4.4	)
WW		1,596	2,174	(26.6	)	(24.1	)	(2.5	)

TOTAL PHARMACEUTICAL
US		20,125	18,333	9.8		9.8		—
Intl		13,339	13,097	1.8		4.0		(2.2	)
WW	$	33,464	31,430	6.5	%	7.4	%	(0.9	)%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ⁽²⁾

CARDIOVASCULAR
US	$	948	931	1.8	%	1.8	%	—	%
Intl		901	1,105	(18.5	)	(18.4	)	(0.1	)
WW		1,849	2,036	(9.2	)	(9.2	)	0.0

DIABETES CARE
US		739	833	(11.3	)	(11.3	)	—
Intl		1,050	1,095	(4.1	)	(1.9	)	(2.2	)
WW		1,789	1,928	(7.2	)	(5.9	)	(1.3	)

DIAGNOSTICS
US		—	—	—		—		—
Intl		66	86	(23.3	)	(13.9	)	(9.4	)
WW		66	86	(23.3	)	(13.9	)	(9.4	)

ORTHOPAEDICS
US		5,521	5,380	2.6		2.6		—
Intl		3,813	3,882	(1.8	)	0.5		(2.3	)
WW		9,334	9,262	0.8		1.8		(1.0	)

HIPS
US		798	781	2.2		2.2		—
Intl		563	551	2.2		5.7		(3.5	)
WW		1,361	1,332	2.2		3.6		(1.4	)

KNEES
US		943	916	2.9		2.9		—
Intl		581	580	0.2		3.5		(3.3	)
WW		1,524	1,496	1.9		3.2		(1.3	)

TRAUMA
US		1,545	1,462	5.7		5.7		—
Intl		1,024	1,066	(3.9	)	(1.9	)	(2.0	)
WW		2,569	2,528	1.6		2.5		(0.9	)

SPINE & OTHER
US		2,235	2,221	0.6		0.6		—
Intl		1,645	1,685	(2.4	)	(0.6	)	(1.8	)
WW		3,880	3,906	(0.7	)	0.1		(0.8	)

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2016	2015	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ^{(2) (Continued)}

SURGERY
US	$	4,026	3,991	0.9	%	0.9	%	—	%
Intl		5,270	5,226	0.8		3.3		(2.5	)
WW		9,296	9,217	0.9		2.3		(1.4	)

ADVANCED
US		1,524	1,430	6.6		6.6		—
Intl		1,993	1,845	8.0		10.7		(2.7	)
WW		3,517	3,275	7.4		8.9		(1.5	)

GENERAL
US		1,669	1,702	(1.9	)	(1.9	)	—
Intl		2,693	2,780	(3.1	)	(0.7	)	(2.4	)
WW		4,362	4,482	(2.7	)	(1.2	)	(1.5	)

SPECIALTY
US		833	859	(3.0	)	(3.0	)	—
Intl		584	601	(2.8	)	(0.4	)	(2.4	)
WW		1,417	1,460	(2.9	)	(1.9	)	(1.0	)

VISION CARE
US		1,032	997	3.5		3.5		—
Intl		1,753	1,611	8.8		8.2		0.6
WW		2,785	2,608	6.8		6.4		0.4

TOTAL MEDICAL DEVICES
US		12,266	12,132	1.1		1.1		—
Intl		12,853	13,005	(1.2	)	0.7		(1.9	)
WW	$	25,119	25,137	(0.1	)%	0.9	%	(1.0	)%

* Percentage greater than 100%
** Not meaningful
⁽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 (see supplemental sales information for further detail)
⁽⁴⁾ Reported as U.S. sales



Johnson & Johnson
Supplemental Sales Information
(Dollars in Millions)

Prior quarter amounts have been reclassified to
conform to current year product disclosure
	2016				2015

	Q3		Q2	Q1	Q3	Q2	Q1
CONSUMER SEGMENT⁽¹⁾
BABY CARE⁽³⁾
US	$	118	126	121	126	127	135
Intl	377		404	362	408	443	405
WW	495		530	483	534	570	540
BEAUTY^{(2) (4)}
US	517		554	484	433	492	494
Intl	462		422	395	451	424	436
WW	979		976	879	884	916	930
ORAL CARE
US	156		159	170	154	147	158
Intl	227		244	215	224	244	245
WW	383		403	385	378	391	403
OTC⁽⁵⁾
US	386		405	466	395	377	407
Intl	557		591	533	552	587	559
WW	943		996	999	947	964	966
WOMEN'S HEALTH
US	3		7	6	6	7	6
Intl	266		276	245	304	313	281
WW	269		283	251	310	320	287
WOUND CARE / OTHER
US	111		133	111	163	205	159
Intl	81		98	87	98	117	105
WW	192		231	198	261	322	264

TOTAL CONSUMER
US	1,291		1,384	1,358	1,277	1,355	1,359
Intl	1,970		2,035	1,837	2,037	2,128	2,031
WW	$	3,261	3,419	3,195	$ 3,314	3,483	3,390

PHARMACEUTICAL SEGMENT⁽¹⁾
DARZALEX
US	$	124	95	101	—	—	—
Intl	39		13	—	—	—	—
WW	$	163	108	101	—	—	—

⁽¹⁾ Unaudited
⁽²⁾ Previously referred to as Skin Care
⁽³⁾ Now includes AVEENO^® Baby (previously part of Beauty)
⁽⁴⁾ Now includes NIZORAL^® and ROGAINE^® /REGAINE^® (previously part of OTC)
⁽⁵⁾ Now includes BENGAY^®, BENADRYL^® Topical, and LACTAID^® (previously part of Wound Care/Other)

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