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

Attached files

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EX-99.15 - EXHIBIT 99.15 - JOHNSON & JOHNSON	a8k2017q4exhibit9915.htm
8-K - 8-K - JOHNSON & JOHNSON	a8-k2017q4.htm

Exhibit 99.2O



Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

	2017			2016			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 20,195		100.0	$ 18,106		100.0	11.5
Cost of products sold	7,243		35.9	5,534		30.5	30.9
Selling, marketing and administrative expenses	6,025		29.8	5,309		29.3	13.5
Research and development expense	3,635		18.0	2,640		14.6	37.7
In-process research and development	408		2.0	—		—
Interest (income) expense, net	189		0.9	84		0.5
Other (income) expense, net	(9)		0.0	20		0.1
Restructuring	144		0.7	195		1.1
Earnings before provision for taxes on income	2,560		12.7	4,324		23.9	(40.8)
Provision for taxes on income	13,273		65.7	510		2.8
Net earnings/(Loss)	$ (10,713)		(53.0)	$ 3,814		21.1	(380.9)

Net earnings/(Loss) per share (Basic/Diluted)*	$ (3.99)			$ 1.38			(389.1	)

Average shares outstanding (Basic/Diluted)*	2,684.9			2,764.5

Effective tax rate	518.5	%		11.8	%

Adjusted earnings before provision for taxes and net earnings^{(1) (A)}
Earnings before provision for taxes on income	$ 5,251		26.0	$ 5,103		28.2	2.9
Net earnings	$ 4,777		23.7	$ 4,361		24.1	9.5
Net earnings per share (Diluted)	$ 1.74			$ 1.58			10.1
Average shares outstanding (Diluted)**	2,740.7			2,764.5
Effective tax rate	9.0	%		14.5	%

*Basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive.

**Difference of 55.8 shares due to anti-dilutive impact on net loss position.

⁽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, 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

	2017			2016			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 76,450		100.0	$ 71,890		100.0	6.3
Cost of products sold	25,354		33.2	21,685		30.2	16.9
Selling, marketing and administrative expenses	21,420		28.0	19,945		27.7	7.4
Research and development expense	10,554		13.8	9,095		12.7	16.0
In-process research and development	408		0.6	29		0.0
Interest (income) expense, net	549		0.7	358		0.5
Other (income) expense, net	183		0.2	484		0.7
Restructuring	309		0.4	491		0.7
Earnings before provision for taxes on income	17,673		23.1	19,803		27.5	(10.8)
Provision for taxes on income	16,373		21.4	3,263		4.5	401.8
Net earnings	$ 1,300		1.7	$ 16,540		23.0	(92.1)

Net earnings per share (Diluted)	$ 0.47			$ 5.93			(92.1)

Average shares outstanding (Diluted)	2,745.3			2,788.9

Effective tax rate	92.6	%		16.5	%

Adjusted earnings before provision for taxes and net earnings^{(1) (A)}
Earnings before provision for taxes on income	$ 24,212		31.7	$ 22,759		31.7	6.4
Net earnings	$ 20,040		26.2	$ 18,764		26.1	6.8
Net earnings per share (Diluted)	$ 7.30			$ 6.73			8.5
Effective tax rate	17.2	%		17.6	%

⁽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, 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
	2017	2016	Total		Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 1,379	1,387	(0.6)	%	(0.6)	—
International	2,161	2,045	5.7		1.2	4.5
	3,540	3,432	3.1		0.4	2.7

Pharmaceutical
U.S.	5,776	5,002	15.5		15.5	—
International	3,905	3,230	20.9		15.5	5.4
	9,681	8,232	17.6		15.5	2.1

Medical Devices
U.S.	3,314	3,148	5.3		5.3	—
International	3,660	3,294	11.1		7.5	3.6
	6,974	6,442	8.3		6.5	1.8

U.S.	10,469	9,537	9.8		9.8	—
International	9,726	8,569	13.5		9.0	4.5
Worldwide	$ 20,195	18,106	11.5	%	9.4	2.1



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	TWELVE MONTHS
			Percent Change
	2017	2016	Total		Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 5,565	5,420	2.7	%	2.7	—
International	8,037	7,887	1.9		0.4	1.5
	13,602	13,307	2.2		1.3	0.9

Pharmaceutical
U.S.	21,474	20,125	6.7		6.7	—
International	14,782	13,339	10.8		10.1	0.7
	36,256	33,464	8.3		8.0	0.3

Medical Devices
U.S.	12,824	12,266	4.5		4.5	—
International	13,768	12,853	7.1		6.7	0.4
	26,592	25,119	5.9		5.7	0.2

U.S.	39,863	37,811	5.4		5.4	—
International	36,587	34,079	7.4		6.6	0.8
Worldwide	$ 76,450	71,890	6.3	%	6.0	0.3



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FOURTH QUARTER
			Percent Change
	2017	2016	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 10,469	9,537	9.8	%	9.8	—

Europe	4,728	4,001	18.2		10.1	8.1
Western Hemisphere excluding U.S.	1,519	1,465	3.7		1.8	1.9
Asia-Pacific, Africa	3,479	3,103	12.1		11.1	1.0
International	9,726	8,569	13.5		9.0	4.5

Worldwide	$ 20,195	18,106	11.5	%	9.4	2.1



Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	TWELVE MONTHS
			Percent Change
	2017	2016	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 39,863	37,811	5.4	%	5.4	—

Europe	17,126	15,770	8.6		7.2	1.4
Western Hemisphere excluding U.S.	6,041	5,734	5.4		2.8	2.6
Asia-Pacific, Africa	13,420	12,575	6.7		7.5	(0.8)
International	36,587	34,079	7.4		6.6	0.8

Worldwide	$ 76,450	71,890	6.3	%	6.0	0.3



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

	Fourth Quarter		% Incr. /
(Dollars in Millions Except Per Share Data)	2017	2016	(Decr.)

Earnings before provision for taxes on income - as reported	$ 2,560	4,324	(40.8)		%
Intangible asset amortization expense	1,077	344
Litigation expense, net	645	96
Actelion acquisition related cost	217	—
Restructuring/Other ⁽¹⁾	284	298
In-process research and development	408	—
Diabetes asset impairment	35	—
AMO acquisition related cost	25	—
DePuy ASR^TM Hip program	—	9
Other	—	32
Earnings before provision for taxes on income - as adjusted	$ 5,251	5,103	2.9		%

Net Earnings/(Loss) - as reported	$ (10,713)	3,814	(380.9)		%
Impact of tax legislation	13,556	—
Intangible asset amortization expense	926	252
Litigation expense, net	506	80
Actelion acquisition related cost	313	—
Restructuring/Other	237	251
In-process research and development	266	—
Diabetes asset impairment	(116)	—
AMO acquisition related cost	(198)	—
DePuy ASR^TM Hip program	—	7
Other	—	(43)
Net Earnings - as adjusted	$ 4,777	4,361	9.5		%

Diluted Net Earnings/(Loss) per share - as reported	$ (3.99)	1.38	(389.1	)	%
Dilutive impact of shares excluded due to net loss position	0.08	—
Impact of tax legislation	4.94	—
Intangible asset amortization expense	0.34	0.09
Litigation expense, net	0.19	0.03
Actelion acquisition related cost	0.11	—
Restructuring/Other	0.08	0.09
In-process research and development	0.10	—
Diabetes asset impairment	(0.04)	—
AMO acquisition related cost	(0.07)	—
DePuy ASR^TM Hip program	—	—
Other	—	(0.01)
Diluted Net Earnings per share - as adjusted	$ 1.74	1.58	10.1		%

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

Impact of currency at 2016 foreign currency exchange rates	(0.07)	(0.01)

Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates	$ 1.67	1.58	5.7		%

⁽¹⁾ Includes $42M recorded in cost of products sold and $98M recorded in other (income) expense for the fourth quarter 2017, and $18M recorded in cost of products sold and $85M recorded in other (income) expense for the fourth quarter 2016.



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

	Twelve Months		% Incr. /
(Dollars in Millions Except Per Share Data)	2017	2016	(Decr.)

Earnings before provision for taxes on income - as reported	$ 17,673	19,803	(10.8)	%
Intangible asset amortization expense	2,963	1,271
Litigation expense, net	1,256	817
Actelion acquisition related cost	797	—
Restructuring/Other⁽¹⁾	760	685
In-process research and development	408	29
Diabetes asset impairment	215	—
AMO acquisition related cost	140	—
DePuy ASR^TM Hip program	—	9
Other	—	145
Earnings before provision for taxes on income - as adjusted	$ 24,212	22,759	6.4	%

Net Earnings/(Loss) - as reported	$ 1,300	16,540	(92.1)	%
Impact of tax legislation	13,556	—
Intangible asset amortization expense	2,481	931
Litigation expense, net	955	675
Actelion acquisition related cost	767	—
Restructuring/Other	595	544
In-process research and development	266	23
Diabetes asset impairment	4	—
AMO acquisition related cost	116	—
DePuy ASR^TM Hip program	—	7
Other	—	44
Net Earnings - as adjusted	$ 20,040	18,764	6.8	%

Diluted Net Earnings/(Loss) per share - as reported	$ 0.47	5.93	(92.1)	%
Dilutive impact of shares excluded due to loss position	—	—
Impact of tax legislation	4.94	—
Intangible asset amortization expense	0.90	0.33
Litigation expense, net	0.35	0.24
Actelion acquisition related cost	0.28	—
Restructuring/Other	0.22	0.20
In-process research and development	0.10	0.01
Diabetes asset impairment	—	—
AMO acquisition related cost	0.04	—
DePuy ASR^TM Hip program	—	—
Other	—	0.02
Diluted Net Earnings per share - as adjusted	$ 7.30	6.73	8.5	%

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

Impact of currency at 2016 foreign currency exchange rates	(0.06)	(0.05)

Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates	$ 7.24	6.73	7.6	%

⁽¹⁾ Includes $88M recorded in cost of products sold and $363M recorded in other (income) expense for twelve months YTD 2017, and $45M recorded in cost of products sold and $149M recorded in other (income) expense for twelve months YTD 2016.



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

Operational Sales Growth Excluding Acquisitions and Divestitures ^(A)
FOURTH QUARTER 2017 ACTUAL vs. 2016 ACTUAL

Segments

	Consumer	Pharmaceutical	Medical Devices	Total
	Operational %⁽¹⁾
WW As Reported:	0.4%	15.5%	6.5%	9.4%
U.S.	(0.6)%	15.5%	5.3%	9.8%
International	1.2%	15.5%	7.5%	9.0%

Vision Care
Abbott Medical Optics			(5.4)	(1.9)
U.S.			(4.9)	(1.7)
International			(5.8)	(2.2)

Pulmonary Hypertension
Actelion		(7.4)		(3.4)
U.S.		(7.3)		(3.8)
International		(7.6)		(2.8)

Cardiovascular / Metabolism / Other
Actelion		(0.5)		(0.2)
U.S.		(0.3)		(0.2)
International		(0.7)		(0.3)

Spine & Other			1.2	0.5
Codman Neuroscience			0.8	0.2
U.S.			1.6	0.6
International

All Other Acquisitions and Divestitures	(0.2)		(0.3)	(0.2)
U.S.	0.0		(0.9)	(0.2)
International	(0.5)		0.3	0.0

WW Ops excluding Acquisitions and Divestitures	0.2%	7.6%	2.0%	4.2%
U.S.	(0.6)%	7.9%	0.3%	4.1%
International	0.7%	7.2%	3.6%	4.3%

⁽¹⁾ Operational growth excludes the effect of translational currency

^(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions and divestitures" 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 variable nature of acquisitions and divestitures, 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 and Divestitures ^(A)
TWELVE MONTHS 2017 ACTUAL vs. 2016 ACTUAL

Segments

	Consumer	Pharmaceutical	Medical Devices	Total
	Operational % ⁽¹⁾
WW As Reported:	1.3%	8.0%	5.7%	6.0%
U.S.	2.7%	6.7%	4.5%	5.4%
International	0.4%	10.1%	6.7%	6.6%

Beauty
Vogue	(1.5)			(0.3)
U.S.	(3.1)			(0.4)
International	(0.4)			(0.1)

Other Neuroscience
Controlled Substance Raw Material and API Business		0.4		0.2
U.S.		0.5		0.2
International		0.2		0.1

Diagnostics
Ortho-Clinical Diagnostics			0.2	0.0
U.S.			0.0	0.0
International			0.5	0.1

Beauty
Dr. Ci: Labo	(0.3)			(0.1)
U.S.	0.0			0.0
International	(0.6)			(0.1)

Vision Care
Abbott Medical Optics			(4.5)	(1.5)
U.S.			(4.0)	(1.3)
International			(4.9)	(1.8)

Pulmonary Hypertension
Actelion		(4.0)		(1.9)
U.S.		(3.8)		(2.0)
International		(4.2)		(1.7)

Cardiovascular / Metabolism / Other
Actelion		(0.2)		(0.1)
U.S.		(0.3)		(0.1)
International		(0.3)		(0.1)

Spine & Other
Codman Neuroscience			0.3	0.1
U.S.			0.2	0.1
International			0.5	0.2

All Other Acquisitions and Divestitures	0.0		(0.2)	0.0
U.S.	(0.3)		(0.7)	(0.3)
International	0.3		0.2	0.1

WW Ops excluding Acquisitions and Divestitures	(0.5)%	4.2%	1.5%	2.4%
U.S.	(0.7)%	3.1%	0.0%	1.6%
International	(0.3)%	5.8%	3.0%	3.3%

⁽¹⁾ Operational growth excludes the effect of translational currency

^(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions and divestitures" 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 variable nature of acquisitions and divestitures, 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
		2017	2016	Reported		Operational⁽¹⁾		Currency
CONSUMER SEGMENT⁽²⁾

BABY CARE
US	$	123	123	0.0	%	0.0	%	—	%
Intl		367	370	(0.8	)	(3.2	)	2.4
WW		490	493	(0.6	)	(2.4	)	1.8

BEAUTY
US		596	580	2.8		2.8		—
Intl		514	483	6.4		2.0		4.4
WW		1,110	1,063	4.4		2.4		2.0

ORAL CARE
US		156	163	(4.3	)	(4.3	)	—
Intl		237	234	1.3		(2.6	)	3.9
WW		393	397	(1.0	)	(3.3	)	2.3

OTC
US		406	418	(2.9	)	(2.9	)	—
Intl		699	621	12.6		6.3		6.3
WW		1,105	1,039	6.4		2.6		3.8

WOMEN'S HEALTH
US		3	3	0.0		0.0		—
Intl		259	261	(0.8	)	(4.5	)	3.7
WW		262	264	(0.8	)	(4.4	)	3.6

WOUND CARE/OTHER
US		95	100	(5.0	)	(5.0	)	—
Intl		85	76	11.8		6.1		5.7
WW		180	176	2.3		(0.1	)	2.4

TOTAL CONSUMER
US		1,379	1,387	(0.6	)	(0.6	)	—
Intl		2,161	2,045	5.7		1.2		4.5
WW	$	3,540	3,432	3.1	%	0.4	%	2.7	%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		FOURTH QUARTER
				% Change
		2017	2016	Reported		Operational⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3)}

IMMUNOLOGY
US	$	2,227	2,157	3.2	%	3.2	%	—	%
Intl		859	779	10.3		5.2		5.1
WW		3,086	2,936	5.1		3.7		1.4
REMICADE
US		1,073	1,173	(8.5	)	(8.5	)	—
US Exports⁽⁴⁾		115	109	5.5		5.5		—
Intl		278	342	(18.7	)	(22.6	)	3.9
WW		1,466	1,624	(9.7	)	(10.5	)	0.8
SIMPONI / SIMPONI ARIA
US		253	243	4.1		4.1		—
Intl		237	183	29.5		25.1		4.4
WW		490	426	15.0		13.1		1.9
STELARA
US		740	632	17.1		17.1		—
Intl		341	247	38.1		30.6		7.5
WW		1,081	879	23.0		20.9		2.1
OTHER IMMUNOLOGY
US		46	—	*		*		—
Intl		3	7	(57.1	)	(57.1	)	0.0
WW		49	7	*		*		0.0

INFECTIOUS DISEASES
US		338	354	(4.5	)	(4.5	)	—
Intl		462	407	13.5		5.9		7.6
WW		800	761	5.1		1.0		4.1
EDURANT / rilpivirine
US		14	14	0.0		0.0		—
Intl		178	151	17.9		8.9		9.0
WW		192	165	16.4		8.2		8.2
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		285	283	0.7		0.7		—
Intl		185	164	12.8		5.5		7.3
WW		470	447	5.1		2.4		2.7
OTHER INFECTIOUS DISEASES
US		39	57	(31.6	)	(31.6	)	—
Intl		99	92	7.6		1.5		6.1
WW		138	149	(7.4	)	(11.1	)	3.7

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		FOURTH QUARTER
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

NEUROSCIENCE
US	$	699	631	10.8	%	10.8	%	—	%
Intl		825	839	(1.7	)	(5.3	)	3.6
WW		1,524	1,470	3.7		1.6		2.1
CONCERTA / METHYLPHENIDATE
US		100	103	(2.9	)	(2.9	)	—
Intl		103	101	2.0		(0.6	)	2.6
WW		203	204	(0.5	)	(1.8	)	1.3
INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA
US		436	360	21.1		21.1		—
Intl		257	225	14.2		8.0		6.2
WW		693	585	18.5		16.1		2.4
RISPERDAL CONSTA
US		87	92	(5.4	)	(5.4	)	—
Intl		110	118	(6.8	)	(11.5	)	4.7
WW		197	210	(6.2	)	(8.8	)	2.6
OTHER NEUROSCIENCE
US		76	76	0.0		0.0		—
Intl		355	395	(10.1	)	(12.2	)	2.1
WW		431	471	(8.5	)	(10.2	)	1.7

ONCOLOGY
US		891	595	49.7		49.7		—
Intl		1,148	867	32.4		26.0		6.4
WW		2,039	1,462	39.5		35.7		3.8
DARZALEX
US		241	151	59.6		59.6		—
Intl		130	49	*		*		*
WW		371	200	85.5		82.3		3.2
IMBRUVICA
US		219	158	38.6		38.6		—
Intl		303	188	61.2		52.2		9.0
WW		522	346	50.9		46.0		4.9
VELCADE
US		—	—	—		—		—
Intl		271	274	(1.1	)	(5.6	)	4.5
WW		271	274	(1.1	)	(5.6	)	4.5
ZYTIGA
US		402	249	61.4		61.4		—
Intl		353	270	30.7		25.0		5.7
WW		755	519	45.5		42.5		3.0
OTHER ONCOLOGY
US		29	37	(21.6	)	(21.6	)	—
Intl		91	86	5.8		0.5		5.3
WW		120	123	(2.4	)	(6.1	)	3.7
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2017	2016	Reported	Operational ⁽¹⁾	Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

PULMONARY HYPERTENSION ⁽⁵⁾
US	$	365	—	*	*	—
Intl		245	—	*	*	—
WW		610	—	*	*	—
OPSUMIT
US		146	—	*	*	—
Intl		123	—	*	*	—
WW		269	—	*	*	—
TRACLEER
US		76	—	*	*	—
Intl		91	—	*	*	—
WW		167	—	*	*	—
UPTRAVI
US		117	—	*	*	—
Intl		13	—	*	*	—
WW		130	—	*	*	—
OTHER
US		26	—	*	*	—
Intl		18	—	*	*	—
WW		44	—	*	*	—


See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		FOURTH QUARTER
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

CARDIOVASCULAR / METABOLISM / OTHER
US	$	1,256	1,265	(0.7	)%	(0.7	)%	—	%
Intl		366	338	8.3		3.2		5.1
WW		1,622	1,603	1.2		0.1		1.1
XARELTO
US		710	598	18.7		18.7		—
Intl		—	—	—		—		—
WW		710	598	18.7		18.7		—
INVOKANA / INVOKAMET
US		221	334	(33.8	)	(33.8	)	—
Intl		46	37	24.3		16.4		7.9
WW		267	371	(28.0	)	(28.8	)	0.8
PROCRIT / EPREX
US		164	186	(11.8	)	(11.8	)	—
Intl		68	73	(6.8	)	(12.1	)	5.3
WW		232	259	(10.4	)	(11.9	)	1.5
OTHER
US		161	147	9.5		9.5		—
Intl		252	228	10.5		5.9		4.6
WW		413	375	10.1		7.3		2.8

TOTAL PHARMACEUTICAL
US		5,776	5,002	15.5		15.5		—
Intl		3,905	3,230	20.9		15.5		5.4
WW	$	9,681	8,232	17.6	%	15.5	%	2.1	%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		FOURTH QUARTER
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ⁽²⁾

CARDIOVASCULAR
US	$	286	247	15.8	%	15.8	%	—	%
Intl		282	238	18.5		15.6		2.9
WW		568	485	17.1		15.7		1.4

DIABETES CARE
US		130	191	(31.9	)	(31.9	)	—
Intl		260	271	(4.1	)	(9.3	)	5.2
WW		390	462	(15.6	)	(18.7	)	3.1

DIAGNOSTICS
US		—	—	—		—		—
Intl		—	—	—		—		—
WW		—	—	—		—		—

ORTHOPAEDICS
US		1,389	1,422	(2.3	)	(2.3	)	—
Intl		950	965	(1.6	)	(5.8	)	4.2
WW		2,339	2,387	(2.0	)	(3.7	)	1.7

HIPS
US		215	208	3.4		3.4		—
Intl		149	142	4.9		0.4		4.5
WW		364	350	4.0		2.2		1.8

KNEES
US		246	247	(0.4	)	(0.4	)	—
Intl		151	148	2.0		(2.5	)	4.5
WW		397	395	0.5		(1.2	)	1.7

TRAUMA
US		397	394	0.8		0.8		—
Intl		272	260	4.6		0.4		4.2
WW		669	654	2.3		0.6		1.7

SPINE & OTHER
US		531	573	(7.3	)	(7.3	)	—
Intl		378	415	(8.9	)	(13.0	)	4.1
WW		909	988	(8.0	)	(9.7	)	1.7

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		FOURTH QUARTER
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ^{(2) (Continued)}

SURGERY
US	$	1,076	1,023	5.2	%	5.2	%	—	%
Intl		1,482	1,364	8.7		5.4		3.3
WW		2,558	2,387	7.2		5.3		1.9

ADVANCED
US		430	393	9.4		9.4		—
Intl		593	515	15.1		11.7		3.4
WW		1,023	908	12.7		10.8		1.9

GENERAL
US		452	415	8.9		8.9		—
Intl		718	687	4.5		1.0		3.5
WW		1,170	1,102	6.2		4.0		2.2

SPECIALTY
US		194	215	(9.8	)	(9.8	)	—
Intl		171	162	5.6		3.1		2.5
WW		365	377	(3.2	)	(4.3	)	1.1

VISION CARE
US		433	265	63.4		63.4		—
Intl		686	456	50.4		48.2		2.2
WW		1,119	721	55.2		53.8		1.4

CONTACT LENSES / OTHER
US		290	265	9.4		9.4		—
Intl		510	456	11.8		9.6		2.2
WW		800	721	11.0		9.6		1.4
SURGICAL
US		143	—	*		*		—
Intl		176	—	*		*		—
WW		319	—	*		*		—

TOTAL MEDICAL DEVICES
US		3,314	3,148	5.3		5.3		—
Intl		3,660	3,294	11.1		7.5		3.6
WW	$	6,974	6,442	8.3	%	6.5	%	1.8	%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational⁽¹⁾		Currency
CONSUMER SEGMENT⁽²⁾

BABY CARE
US	$	449	488	(8.0	)%	(8.0	)%	—	%
Intl		1,467	1,513	(3.0	)	(3.6	)	0.6
WW		1,916	2,001	(4.2	)	(4.7	)	0.5

BEAUTY
US		2,335	2,135	9.4		9.4		—
Intl		1,865	1,762	5.8		4.5		1.3
WW		4,200	3,897	7.8		7.2		0.6

ORAL CARE
US		616	648	(4.9	)	(4.9	)	—
Intl		915	920	(0.5	)	(1.8	)	1.3
WW		1,531	1,568	(2.4	)	(3.2	)	0.8

OTC
US		1,716	1,675	2.4		2.4		—
Intl		2,410	2,302	4.7		2.7		2.0
WW		4,126	3,977	3.7		2.6		1.1

WOMEN'S HEALTH
US		12	19	(36.8	)	(36.8	)	—
Intl		1,038	1,048	(1.0	)	(3.1	)	2.1
WW		1,050	1,067	(1.6	)	(3.7	)	2.1

WOUND CARE/OTHER
US		437	455	(4.0	)	(4.0	)	—
Intl		342	342	0.0		(1.7	)	1.7
WW		779	797	(2.3	)	(3.0	)	0.7

TOTAL CONSUMER
US		5,565	5,420	2.7		2.7		—
Intl		8,037	7,887	1.9		0.4		1.5
WW	$	13,602	13,307	2.2	%	1.3	%	0.9	%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3)}

IMMUNOLOGY
US	$	8,871	8,846	0.3	%	0.3	%	—	%
Intl		3,373	3,122	8.0		6.7		1.3
WW		12,244	11,968	2.3		2.0		0.3
REMICADE
US		4,525	4,842	(6.5	)	(6.5	)	—
US Exports⁽⁴⁾		563	782	(28.0	)	(28.0	)	—
Intl		1,227	1,342	(8.6	)	(10.2	)	1.6
WW		6,315	6,966	(9.3	)	(9.6	)	0.3
SIMPONI / SIMPONI ARIA
US		954	959	(0.5	)	(0.5	)	—
Intl		879	786	11.8		10.9		0.9
WW		1,833	1,745	5.0		4.6		0.4
STELARA
US		2,767	2,263	22.3		22.3		—
Intl		1,244	969	28.4		27.2		1.2
WW		4,011	3,232	24.1		23.7		0.4
OTHER IMMUNOLOGY
US		62	—	*		*		—
Intl		23	25	(8.0	)	(9.3	)	1.3
WW		85	25	*		*		1.3

INFECTIOUS DISEASES
US		1,358	1,461	(7.0	)	(7.0	)	—
Intl		1,796	1,747	2.8		1.0		1.8
WW		3,154	3,208	(1.7	)	(2.7	)	1.0
EDURANT / rilpivirine
US		58	52	11.5		11.5		—
Intl		656	521	25.9		23.1		2.8
WW		714	573	24.6		22.1		2.5
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		1,109	1,143	(3.0	)	(3.0	)	—
Intl		712	708	0.6		(0.8	)	1.4
WW		1,821	1,851	(1.6	)	(2.1	)	0.5
OTHER INFECTIOUS DISEASES
US		191	266	(28.2	)	(28.2	)	—
Intl		428	518	(17.4	)	(18.7	)	1.3
WW		619	784	(21.0	)	(21.9	)	0.9

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

NEUROSCIENCE
US	$	2,630	2,628	0.1	%	0.1	%	—	%
Intl		3,356	3,457	(2.9	)	(3.0	)	0.1
WW		5,986	6,085	(1.6	)	(1.6	)	0.0
CONCERTA / METHYLPHENIDATE
US		384	468	(17.9	)	(17.9	)	—
Intl		407	395	3.0		2.8		0.2
WW		791	863	(8.3	)	(8.4	)	0.1
INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA
US		1,590	1,343	18.4		18.4		—
Intl		979	871	12.4		11.6		0.8
WW		2,569	2,214	16.0		15.7		0.3
RISPERDAL CONSTA
US		360	381	(5.5	)	(5.5	)	—
Intl		445	512	(13.1	)	(13.4	)	0.3
WW		805	893	(9.9	)	(10.1	)	0.2
OTHER NEUROSCIENCE
US		296	436	(32.1	)	(32.1	)	—
Intl		1,525	1,679	(9.2	)	(8.7	)	(0.5	)
WW		1,821	2,115	(13.9	)	(13.5	)	(0.4	)

ONCOLOGY
US		3,098	2,335	32.7		32.7		—
Intl		4,160	3,472	19.8		19.1		0.7
WW		7,258	5,807	25.0		24.6		0.4
DARZALEX
US		884	471	87.7		87.7		—
Intl		358	101	*		*		*
WW		1,242	572	*		*		*
IMBRUVICA
US		841	613	37.2		37.2		—
Intl		1,052	638	64.9		63.2		1.7
WW		1,893	1,251	51.3		50.4		0.9
VELCADE
US		—	—	—		—		—
Intl		1,114	1,224	(9.0	)	(8.8	)	(0.2	)
WW		1,114	1,224	(9.0	)	(8.8	)	(0.2	)
ZYTIGA
US		1,228	1,089	12.8		12.8		—
Intl		1,277	1,171	9.1		8.5		0.6
WW		2,505	2,260	10.8		10.5		0.3
OTHER ONCOLOGY
US		145	162	(10.5	)	(10.5	)	—
Intl		359	338	6.2		5.6		0.6
WW		504	500	0.8		0.4		0.4
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2017	2016	Reported	Operational ⁽¹⁾	Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

PULMONARY HYPERTENSION ⁽⁵⁾
US	$	773	—	*	*	—
Intl		554	—	*	*	—
WW		1,327	—	*	*	—
OPSUMIT
US		320	—	*	*	—
Intl		253	—	*	*	—
WW		573	—	*	*	—
TRACLEER
US		161	—	*	*	—
Intl		242	—	*	*	—
WW		403	—	*	*	—
UPTRAVI
US		238	—	*	*	—
Intl		25	—	*	*	—
WW		263	—	*	*	—
OTHER ⁽⁶⁾
US		54	—	*	*	—
Intl		34	—	*	*	—
WW		88	—	*	*	—


See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
PHARMACEUTICAL SEGMENT^{(2) (3) (Continued)}

CARDIOVASCULAR / METABOLISM / OTHER
US	$	4,744	4,855	(2.3	)%	(2.3	)%	—	%
Intl		1,543	1,541	0.1		0.5		(0.4	)
WW		6,287	6,396	(1.7	)	(1.6	)	(0.1	)
XARELTO
US		2,500	2,288	9.3		9.3		—
Intl		—	—	—		—		—
WW		2,500	2,288	9.3		9.3		—
INVOKANA / INVOKAMET
US		944	1,273	(25.8	)	(25.8	)	—
Intl		167	134	24.6		23.7		0.9
WW		1,111	1,407	(21.0	)	(21.1	)	0.1
PROCRIT / EPREX
US		675	767	(12.0	)	(12.0	)	—
Intl		297	338	(12.1	)	(13.0	)	0.9
WW		972	1,105	(12.0	)	(12.3	)	0.3
OTHER ⁽⁶⁾
US		625	527	18.6		18.6		—
Intl		1,079	1,069	0.9		1.9		(1.0	)
WW		1,704	1,596	6.8		7.5		(0.7	)

TOTAL PHARMACEUTICAL
US		21,474	20,125	6.7		6.7		—
Intl		14,782	13,339	10.8		10.1		0.7
WW	$	36,256	33,464	8.3	%	8.0	%	0.3	%

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ⁽²⁾

CARDIOVASCULAR
US	$	1,071	948	13.0	%	13.0	%	—	%
Intl		1,025	901	13.8		14.0		(0.2	)
WW		2,096	1,849	13.4		13.5		(0.1	)

DIABETES CARE
US		612	739	(17.2	)	(17.2	)	—
Intl		1,003	1,050	(4.5	)	(5.8	)	1.3
WW		1,615	1,789	(9.7	)	(10.5	)	0.8

DIAGNOSTICS
US		—	—	—		—		—
Intl		1	66	*		*		*
WW		1	66	*		*		*

ORTHOPAEDICS
US		5,481	5,521	(0.7	)	(0.7	)	—
Intl		3,777	3,813	(0.9	)	(1.6	)	0.7
WW		9,258	9,334	(0.8	)	(1.1	)	0.3

HIPS
US		827	798	3.6		3.6		—
Intl		567	563	0.7		0.0		0.7
WW		1,394	1,361	2.4		2.1		0.3

KNEES
US		948	943	0.5		0.5		—
Intl		575	581	(1.0	)	(1.6	)	0.6
WW		1,523	1,524	(0.1	)	(0.3	)	0.2

TRAUMA
US		1,576	1,545	2.0		2.0		—
Intl		1,040	1,024	1.6		0.7		0.9
WW		2,616	2,569	1.8		1.5		0.3

SPINE & OTHER
US		2,130	2,235	(4.7	)	(4.7	)	—
Intl		1,595	1,645	(3.0	)	(3.6	)	0.6
WW		3,725	3,880	(4.0	)	(4.2	)	0.2

See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)

		TWELVE MONTHS
				% Change
		2017	2016	Reported		Operational ⁽¹⁾		Currency
MEDICAL DEVICES SEGMENT ^{(2) (Continued)}

SURGERY
US	$	4,085	4,026	1.5	%	1.5	%	—	%
Intl		5,474	5,270	3.9		3.5		0.4
WW		9,559	9,296	2.8		2.6		0.2

ADVANCED
US		1,620	1,524	6.3		6.3		—
Intl		2,136	1,993	7.2		7.0		0.2
WW		3,756	3,517	6.8		6.7		0.1

GENERAL
US		1,728	1,669	3.5		3.5		—
Intl		2,735	2,693	1.6		1.2		0.4
WW		4,463	4,362	2.3		2.0		0.3

SPECIALTY
US		737	833	(11.5	)	(11.5	)	—
Intl		603	584	3.3		2.4		0.9
WW		1,340	1,417	(5.4	)	(5.8	)	0.4

VISION CARE
US		1,575	1,032	52.6		52.6		—
Intl		2,488	1,753	41.9		42.0		(0.1	)
WW		4,063	2,785	45.9		46.0		(0.1	)

CONTACT LENSES / OTHER
US		1,122	1,032	8.7		8.7		—
Intl		1,914	1,753	9.2		9.3		(0.1	)
WW		3,036	2,785	9.0		9.1		(0.1	)
SURGICAL
US		453	—	*		*		—
Intl		574	—	*		*		—
WW		1,027	—	*		*		—

TOTAL MEDICAL DEVICES
US		12,824	12,266	4.5		4.5		—
Intl		13,768	12,853	7.1		6.7		0.4
WW	$	26,592	25,119	5.9	%	5.7	%	0.2	%

* Percentage greater than 100% or 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
⁽⁴⁾ Reported as U.S. sales
⁽⁵⁾ Actelion acquisition completed June 16, 2017
⁽⁶⁾ All non-PAH Actelion products were reclassified to Other within the Cardiovascular/Metabolism/Other therapeutic area.
See supplementary schedule.



Johnson & Johnson
Supplemental Sales Information
(Dollars in Millions)

Prior quarter amounts have been reclassified to conform to current quarter product disclosure

	2017

		Q3	Q2
PHARMACEUTICAL SEGMENT ⁽¹⁾

PULMONARY HYPERTENSION
US	$	371	37
Intl		261	48
WW		632	85

OTHER⁽²⁾
US		25	3
Intl		14	2
WW		39	5

CARDIOVASCULAR / METABOLISM / OTHER
US		1,179	1,214
Intl		406	391
WW		1,585	1,605

OTHER⁽³⁾
US		156	142
Intl		291	271
WW	$	447	413


⁽¹⁾ Unaudited
⁽²⁾ All non-PAH Actelion products removed; Previously included All Other PAH & Non-PAH products.
⁽³⁾ Includes Actelion non-PAH products; Previously included in Pulmonary Hypertension Other.

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