Exhibit 99.2
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||||||||
Supplementary Sales Data | |||||||||||||||||||||||||||||
(Unaudited; Dollars in Millions) | FIRST QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2023 | 2022 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 10,782 | 9,857 | 9.4 | % | 9.4 | — | ||||||||||||||||||||||
Europe | 5,590 | 5,341 | 4.7 | 9.4 | (4.7) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 1,076 | 998 | 7.8 | 15.5 | (7.7) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 3,446 | 3,644 | (5.4) | 3.1 | (8.5) | ||||||||||||||||||||||||
International | 10,112 | 9,983 | 1.3 | 7.7 | (6.4) | ||||||||||||||||||||||||
Worldwide | $ | 20,894 | 19,840 | 5.3 | % | 8.5 | (3.2) | ||||||||||||||||||||||
(Unaudited; Dollars in Millions) | SECOND QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2023 | 2022 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 11,657 | 10,510 | 10.9 | % | 10.9 | — | ||||||||||||||||||||||
Europe | 5,131 | 5,355 | (4.2) | (5.2) | 1.0 | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 1,136 | 1,027 | 10.7 | 16.8 | (6.2) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 3,595 | 3,323 | 8.2 | 14.3 | (6.1) | ||||||||||||||||||||||||
International | 9,862 | 9,705 | 1.6 | 3.8 | (2.2) | ||||||||||||||||||||||||
Worldwide | $ | 21,519 | 20,215 | 6.5 | % | 7.5 | (1.0) | ||||||||||||||||||||||
(Unaudited; Dollars in Millions) | SIX MONTHS | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2023 | 2022 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 22,439 | 20,367 | 10.2 | % | 10.2 | — | ||||||||||||||||||||||
Europe | 10,721 | 10,696 | 0.2 | 2.1 | (1.9) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 2,212 | 2,025 | 9.3 | 16.2 | (6.9) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 7,041 | 6,967 | 1.1 | 8.5 | (7.4) | ||||||||||||||||||||||||
International | 19,974 | 19,688 | 1.5 | 5.8 | (4.3) | ||||||||||||||||||||||||
Worldwide | $ | 42,413 | 40,055 | 5.9 | % | 8.0 | (2.1) | ||||||||||||||||||||||
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||||||||
Supplementary Sales Data | |||||||||||||||||||||||||||||
(Unaudited; Dollars in Millions) | FIRST QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2022 | 2021 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 9,857 | 9,500 | 3.8 | % | 3.8 | — | ||||||||||||||||||||||
Europe | 5,341 | 4,727 | 13.0 | 21.2 | (8.2) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 998 | 968 | 3.0 | 4.2 | (1.2) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 3,644 | 3,485 | 4.6 | 8.3 | (3.7) | ||||||||||||||||||||||||
International | 9,983 | 9,180 | 8.7 | 14.5 | (5.8) | ||||||||||||||||||||||||
Worldwide | $ | 19,840 | 18,680 | 6.2 | % | 9.1 | (2.9) | ||||||||||||||||||||||
(Unaudited; Dollars in Millions) | SECOND QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2022 | 2021 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 10,510 | 10,168 | 3.4 | % | 3.4 | — | ||||||||||||||||||||||
Europe | 5,355 | 4,936 | 8.5 | 22.1 | (13.6) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 1,027 | 933 | 10.2 | 13.2 | (3.0) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 3,323 | 3,421 | (2.9) | 6.2 | (9.1) | ||||||||||||||||||||||||
International | 9,705 | 9,290 | 4.5 | 15.4 | (10.9) | ||||||||||||||||||||||||
Worldwide | $ | 20,215 | 19,458 | 3.9 | % | 9.1 | (5.2) | ||||||||||||||||||||||
(Unaudited; Dollars in Millions) | THIRD QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2022 | 2021 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 10,794 | 10,338 | 4.4 | % | 4.4 | — | ||||||||||||||||||||||
Europe | 4,844 | 4,833 | 0.2 | 16.1 | (15.9) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 1,059 | 1,019 | 3.9 | 9.1 | (5.2) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 3,299 | 3,336 | (1.1) | 11.4 | (12.5) | ||||||||||||||||||||||||
International | 9,202 | 9,188 | 0.1 | 13.6 | (13.5) | ||||||||||||||||||||||||
Worldwide | $ | 19,996 | 19,526 | 2.4 | % | 8.7 | (6.3) | ||||||||||||||||||||||
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||||||||
Supplementary Sales Data | |||||||||||||||||||||||||||||
(Unaudited; Dollars in Millions) | FOURTH QUARTER | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2022 | 2021 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 10,820 | 10,634 | 1.7 | % | 1.7 | — | ||||||||||||||||||||||
Europe | 5,124 | 6,099 | (16.0) | (6.3) | (9.7) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 1,024 | 1,007 | 1.7 | 8.3 | (6.6) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 2,971 | 3,336 | (10.9) | 3.0 | (13.9) | ||||||||||||||||||||||||
International | 9,119 | 10,442 | (12.7) | (1.9) | (10.8) | ||||||||||||||||||||||||
Worldwide | $ | 19,939 | 21,076 | (5.4) | % | (0.1) | (5.3) | ||||||||||||||||||||||
(Unaudited; Dollars in Millions) | TWELVE MONTHS | ||||||||||||||||||||||||||||
Percent Change | |||||||||||||||||||||||||||||
2022 | 2021 | Total | Operations | Currency | |||||||||||||||||||||||||
Sales to customers by geographic area | |||||||||||||||||||||||||||||
U.S. | $ | 41,981 | 40,640 | 3.3 | % | 3.3 | — | ||||||||||||||||||||||
Europe | 20,664 | 20,595 | 0.3 | 12.1 | (11.8) | ||||||||||||||||||||||||
Western Hemisphere excluding U.S. | 4,108 | 3,927 | 4.6 | 8.7 | (4.1) | ||||||||||||||||||||||||
Asia-Pacific, Africa | 13,237 | 13,578 | (2.5) | 7.2 | (9.7) | ||||||||||||||||||||||||
International | 38,009 | 38,100 | (0.2) | 10.0 | (10.2) | ||||||||||||||||||||||||
Worldwide | $ | 79,990 | 78,740 | 1.6 | % | 6.5 | (4.9) | ||||||||||||||||||||||
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Earnings | |||||||||||||||||||||||||||||||||||||||||
(Unaudited; in Millions Except Per Share Figures) | 2023 | ||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | SIX MONTHS | |||||||||||||||||||||||||||||||||||||||
Percent | Percent | Percent | |||||||||||||||||||||||||||||||||||||||
Amount | to Sales | Amount | to Sales | Amount | to Sales | ||||||||||||||||||||||||||||||||||||
Sales to customers | $ | 20,894 | 100.0 | % | $ | 21,519 | 100.0 | % | $ | 42,413 | 100.0 | % | |||||||||||||||||||||||||||||
Cost of products sold | 6,687 | 32.0 | 6,462 | 30.0 | 13,149 | 31.0 | |||||||||||||||||||||||||||||||||||
Gross Profit | 14,207 | 68.0 | 15,057 | 70.0 | 29,264 | 69.0 | |||||||||||||||||||||||||||||||||||
Selling, marketing and administrative expenses | 4,906 | 23.5 | 5,396 | 25.1 | 10,302 | 24.3 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,455 | 16.6 | 3,703 | 17.2 | 7,158 | 16.9 | |||||||||||||||||||||||||||||||||||
In-process research and development Impairments | 49 | 0.2 | — | — | 49 | 0.1 | |||||||||||||||||||||||||||||||||||
Interest income | (198) | (0.9) | (326) | (1.5) | (524) | (1.2) | |||||||||||||||||||||||||||||||||||
Interest expense, net of portion capitalized | 212 | 1.0 | 217 | 1.0 | 429 | 1.0 | |||||||||||||||||||||||||||||||||||
Other (income) expense, net | 6,940 | 33.2 | (384) | (1.8) | 6,556 | 15.5 | |||||||||||||||||||||||||||||||||||
Restructuring | 130 | 0.6 | 145 | 0.7 | 275 | 0.6 | |||||||||||||||||||||||||||||||||||
Earnings/(loss) before provision for taxes on income | (1,287) | (6.2) | 6,306 | 29.3 | 5,019 | 11.8 | |||||||||||||||||||||||||||||||||||
Provision for/(Benefit from) taxes on income | (796) | (3.9) | 930 | 4.3 | 134 | 0.3 | |||||||||||||||||||||||||||||||||||
Net earnings/(loss) from Continuing Operations | $ | (491) | (2.3) | % | $ | 5,376 | 25.0 | % | $ | 4,885 | 11.5 | % | |||||||||||||||||||||||||||||
Net earnings/(loss) from Discontinued Operations, net of tax | 423 | (232) | 191 | ||||||||||||||||||||||||||||||||||||||
Net earnings/(loss) | $ | (68) | $ | 5,144 | $ | 5,076 | |||||||||||||||||||||||||||||||||||
Net Earnings (loss) per Share (Diluted) from Continuing Operations | $ | (0.19) | $ | 2.05 | $ | 1.86 | |||||||||||||||||||||||||||||||||||
Net Earnings (loss) per Share (Diluted) from Discontinued Operations | $ | 0.16 | $ | (0.09) | $ | 0.07 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,605.5 | * | 2,625.7 | 2,630.7 | |||||||||||||||||||||||||||||||||||||
*Basic Shares used as in an overall loss position | |||||||||||||||||||||||||||||||||||||||||
Effective tax rate from Continuing Operations | 61.8 | % | 14.7 | % | 2.7 | % | |||||||||||||||||||||||||||||||||||
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A) | |||||||||||||||||||||||||||||||||||||||||
Earnings before provision for taxes on income from continuing operations | $ | 7,536 | 36.1 | $ | 8,005 | 37.2 | $ | 15,541 | 36.6 | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 6,340 | 30.3 | $ | 6,730 | 31.3 | $ | 13,070 | 30.8 | ||||||||||||||||||||||||||||||||
Net earnings per share (Diluted) from continuing operations | $ | 2.41 | $ | 2.56 | $ | 4.97 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,634.3 | 2,625.7 | 2,630.7 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate from continuing operations | 15.9 | % | 15.9 | % | 15.9 | % | |||||||||||||||||||||||||||||||||||
(1) See Reconciliation of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||||||||
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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) | 2022 | ||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | SIX MONTHS | |||||||||||||||||||||||||||||||||||||||
Percent | Percent | Percent | |||||||||||||||||||||||||||||||||||||||
Amount | to Sales | Amount | to Sales | Amount | to Sales | ||||||||||||||||||||||||||||||||||||
Sales to customers | $ | 19,840 | 100.0 | % | $ | 20,215 | 100.0 | % | $ | 40,055 | 100.0 | % | |||||||||||||||||||||||||||||
Cost of products sold | 6,018 | 30.3 | 6,322 | 31.3 | 12,340 | 30.8 | |||||||||||||||||||||||||||||||||||
Gross Profit | 13,822 | 69.7 | 13,893 | 68.7 | 27,715 | 69.2 | |||||||||||||||||||||||||||||||||||
Selling, marketing and administrative expenses | 4,812 | 24.3 | 5,120 | 25.3 | 9,932 | 24.8 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,355 | 16.9 | 3,585 | 17.7 | 6,940 | 17.3 | |||||||||||||||||||||||||||||||||||
In-process research and development Impairments | 610 | 3.1 | — | — | 610 | 1.5 | |||||||||||||||||||||||||||||||||||
Interest income | (22) | (0.1) | (64) | (0.3) | (86) | (0.2) | |||||||||||||||||||||||||||||||||||
Interest expense, net of portion capitalized | 10 | 0.1 | 38 | 0.2 | 48 | 0.1 | |||||||||||||||||||||||||||||||||||
Other (income) expense, net | (210) | (1.1) | (1) | 0.0 | (211) | (0.5) | |||||||||||||||||||||||||||||||||||
Restructuring | 64 | 0.3 | 71 | 0.4 | 135 | 0.4 | |||||||||||||||||||||||||||||||||||
Earnings before provision for taxes on income | 5,203 | 26.2 | 5,144 | 25.4 | 10,347 | 25.8 | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 632 | 3.2 | 882 | 4.3 | 1,514 | 3.7 | |||||||||||||||||||||||||||||||||||
Net earnings from Continuing Operations | $ | 4,571 | 23.0 | % | $ | 4,262 | 21.1 | % | $ | 8,833 | 22.1 | % | |||||||||||||||||||||||||||||
Net earnings from Discontinued Operations, net of tax | 578 | 552 | 1,130 | ||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 5,149 | $ | 4,814 | $ | 9,963 | |||||||||||||||||||||||||||||||||||
Net Earnings per Share (Diluted) from Continuing Operations | $ | 1.71 | $ | 1.60 | $ | 3.31 | |||||||||||||||||||||||||||||||||||
Net Earnings per Share (Diluted) from Discontinued Operations | $ | 0.22 | $ | 0.20 | $ | 0.42 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,666.5 | 2,667.9 | 2,669.2 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate from Continuing Operations | 12.1 | % | 17.1 | % | 14.6 | % | |||||||||||||||||||||||||||||||||||
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A) | |||||||||||||||||||||||||||||||||||||||||
Earnings before provision for taxes on income from continuing operations | $ | 7,349 | 37.0 | $ | 7,082 | 35.0 | $ | 14,431 | 36.0 | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 6,388 | 32.2 | $ | 6,038 | 29.9 | $ | 12,426 | 31.0 | ||||||||||||||||||||||||||||||||
Net earnings per share (Diluted) from continuing operations | $ | 2.40 | $ | 2.26 | $ | 4.66 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,666.5 | 2,667.9 | 2,669.2 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate from continuing operations | 13.1 | % | 14.7 | % | 13.9 | % | |||||||||||||||||||||||||||||||||||
(1) See Reconciliation of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||||||||
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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) | 2022 | ||||||||||||||||||||||||||||||||||||||||
Q3 | Q4 | FULL YEAR | |||||||||||||||||||||||||||||||||||||||
Percent | Percent | Percent | |||||||||||||||||||||||||||||||||||||||
Amount | to Sales | Amount | to Sales | Amount | to Sales | ||||||||||||||||||||||||||||||||||||
Sales to customers | $ | 19,996 | 100.0 | % | $ | 19,939 | 100.0 | % | $ | 79,990 | 100.0 | % | |||||||||||||||||||||||||||||
Cost of products sold | 6,172 | 30.9 | 6,084 | 30.5 | 24,596 | 30.7 | |||||||||||||||||||||||||||||||||||
Gross Profit | 13,824 | 69.1 | 13,855 | 69.5 | 55,394 | 69.3 | |||||||||||||||||||||||||||||||||||
Selling, marketing and administrative expenses | 4,975 | 24.9 | 5,339 | 26.8 | 20,246 | 25.3 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,485 | 17.4 | 3,710 | 18.6 | 14,135 | 17.7 | |||||||||||||||||||||||||||||||||||
In-process research and development Impairments | — | — | 173 | 0.8 | 783 | 1.0 | |||||||||||||||||||||||||||||||||||
Interest income | (150) | (0.8) | (254) | (1.3) | (490) | (0.6) | |||||||||||||||||||||||||||||||||||
Interest expense, net of portion capitalized | 51 | 0.3 | 177 | 0.9 | 276 | 0.3 | |||||||||||||||||||||||||||||||||||
Other (income) expense, net | 226 | 1.1 | 795 | 4.0 | 810 | 1.0 | |||||||||||||||||||||||||||||||||||
Restructuring | 65 | 0.3 | 75 | 0.4 | 275 | 0.4 | |||||||||||||||||||||||||||||||||||
Earnings before provision for taxes on income | 5,172 | 25.9 | 3,840 | 19.3 | 19,359 | 24.2 | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 862 | 4.3 | 613 | 3.1 | 2,989 | 3.7 | |||||||||||||||||||||||||||||||||||
Net earnings from Continuing Operations | $ | 4,310 | 21.6 | % | $ | 3,227 | 16.2 | % | $ | 16,370 | 20.5 | % | |||||||||||||||||||||||||||||
Net earnings from Discontinued Operations, net of tax | 148 | 293 | 1,571 | ||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 4,458 | $ | 3,520 | $ | 17,941 | |||||||||||||||||||||||||||||||||||
Net Earnings per Share (Diluted) from Continuing Operations | $ | 1.62 | $ | 1.22 | $ | 6.14 | |||||||||||||||||||||||||||||||||||
Net Earnings per Share (Diluted) from Discontinued Operations | $ | 0.06 | $ | 0.11 | $ | 0.59 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,661.3 | 2,650.1 | 2,663.9 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate from Continuing Operations | 16.7 | % | 16.0 | % | 15.4 | % | |||||||||||||||||||||||||||||||||||
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A) | |||||||||||||||||||||||||||||||||||||||||
Earnings before provision for taxes on income from continuing operations | $ | 7,060 | 35.3 | $ | 6,482 | 32.5 | $ | 27,973 | 35.0 | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 5,938 | 29.7 | $ | 5,432 | 27.2 | $ | 23,796 | 29.7 | ||||||||||||||||||||||||||||||||
Net earnings per share (Diluted) from continuing operations | $ | 2.23 | $ | 2.05 | $ | 8.93 | |||||||||||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,661.3 | 2,650.1 | 2,663.9 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate from continuing operations | 15.9 | % | 16.2 | % | 14.9 | % | |||||||||||||||||||||||||||||||||||
(1) See Reconciliation of Non-GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||||||||
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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 | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
2023 | ||||||||||||||||||||
(Dollars in Millions Except Per Share Data) | Q1 | Q2 | SIX MONTHS | |||||||||||||||||
Net Earnings/(loss) from Continuing Operations, after tax - as reported | $ | (491) | 5,376 | 4,885 | ||||||||||||||||
Pre-tax Adjustments | ||||||||||||||||||||
Intangible Asset Amortization expense | 1,122 | 1,130 | 2,252 | |||||||||||||||||
Litigation related | 6,900 | 137 | 7,037 | |||||||||||||||||
IPR&D impairments | 49 | 0 | 49 | |||||||||||||||||
Restructuring related | 130 | 145 | 275 | |||||||||||||||||
Acquisition, integration and divestiture related | 42 | 38 | 80 | |||||||||||||||||
(Gains)/losses on securities | 72 | (1) | 71 | |||||||||||||||||
Medical Device Regulation | 64 | 85 | 149 | |||||||||||||||||
COVID-19 Vaccine related costs | 444 | 165 | 609 | |||||||||||||||||
Tax Adjustments | ||||||||||||||||||||
Tax impact on special item adjustments | (1,980) | (307) | (2,287) | |||||||||||||||||
Consumer Health separation tax related costs | 11 | (17) | (6) | |||||||||||||||||
Tax legislation and other tax related | (23) | (21) | (44) | |||||||||||||||||
Adjusted Net Earnings from continuing operations, after tax | $ | 6,340 | 6,730 | 13,070 | ||||||||||||||||
Average shares outstanding (Diluted) | 2,634.3 | 2,625.7 | 2,630.7 | |||||||||||||||||
Adjusted net earnings per share from continuing operations (Diluted) | $ | 2.41 | 2.56 | 4.97 | ||||||||||||||||
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
(Dollars in Millions Except Per Share Data) | Q1 | Q2 | Q3 | Q4 | FULL YEAR | |||||||||||||||||||||||||||
Net Earnings from Continuing Operations, after tax - as reported | $ | 4,571 | 4,262 | 4,310 | 3,227 | 16,370 | ||||||||||||||||||||||||||
Pre-tax Adjustments | ||||||||||||||||||||||||||||||||
Intangible Asset Amortization expense | 1,014 | 995 | 958 | 977 | 3,944 | |||||||||||||||||||||||||||
Litigation related | 0 | 385 | 219 | 262 | 866 | |||||||||||||||||||||||||||
IPR&D impairments | 610 | 0 | 0 | 173 | 783 | |||||||||||||||||||||||||||
Restructuring related | 58 | 103 | 92 | 119 | 372 | |||||||||||||||||||||||||||
Acquisition, integration and divestiture related | 0 | 0 | 0 | 196 | 196 | |||||||||||||||||||||||||||
(Gains)/losses on securities | 411 | 109 | 164 | 6 | 690 | |||||||||||||||||||||||||||
Medical Device Regulation | 60 | 70 | 78 | 88 | 296 | |||||||||||||||||||||||||||
COVID-19 Vaccine related costs | 0 | 276 | 377 | 821 | 1,474 | |||||||||||||||||||||||||||
Other | (7) | 0 | 0 | 0 | (7) | |||||||||||||||||||||||||||
Tax Adjustments | ||||||||||||||||||||||||||||||||
Tax impact on special item adjustments | (346) | (242) | (312) | (394) | (1,294) | |||||||||||||||||||||||||||
Consumer Health separation tax related costs | 96 | 2 | (36) | 4 | 66 | |||||||||||||||||||||||||||
Tax legislation and other tax related | (79) | 78 | 88 | (47) | 40 | |||||||||||||||||||||||||||
Adjusted Net Earnings from continuing operations, after tax | $ | 6,388 | 6,038 | 5,938 | 5,432 | 23,796 | ||||||||||||||||||||||||||
Average shares outstanding (Diluted) | 2,666.5 | 2,667.9 | 2,661.3 | 2,650.1 | 2,663.9 | |||||||||||||||||||||||||||
Adjusted net earnings per share from continuing operations (Diluted) | $ | 2.40 | 2.26 | 2.23 | 2.05 | 8.93 | ||||||||||||||||||||||||||
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measure | |||||||||||||||||||||||
Adjusted Operational Sales Growth (A) | |||||||||||||||||||||||
2023 ACTUAL vs. 2022 ACTUAL | |||||||||||||||||||||||
Q1 | Q2 | SIX MONTHS | |||||||||||||||||||||
WW As Reported | 5.3 | % | 6.5 | % | 5.9 | % | |||||||||||||||||
U.S. | 9.4 | % | 10.9 | % | 10.2 | % | |||||||||||||||||
International | 1.3 | % | 1.6 | % | 1.5 | % | |||||||||||||||||
WW Currency | (3.2) | (1.0) | (2.1) | ||||||||||||||||||||
U.S. | — | — | — | ||||||||||||||||||||
International | (6.4) | (2.2) | (4.3) | ||||||||||||||||||||
WW Operational | 8.5 | % | 7.5 | % | 8.0 | % | |||||||||||||||||
U.S. | 9.4 | % | 10.9 | % | 10.2 | % | |||||||||||||||||
International | 7.7 | % | 3.8 | % | 5.8 | % | |||||||||||||||||
Abiomed | (1.6) | (1.6) | (1.6) | ||||||||||||||||||||
U.S. | (2.7) | (2.6) | (2.6) | ||||||||||||||||||||
International | (0.6) | (0.6) | (0.6) | ||||||||||||||||||||
All Other Acquisitions and Divestitures | 0.0 | 0.1 | 0.0 | ||||||||||||||||||||
U.S. | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||
International | 0.1 | 0.2 | 0.2 | ||||||||||||||||||||
WW Adjusted Operational | 6.9 | % | 6.0 | % | 6.4 | % | |||||||||||||||||
U.S. | 6.7 | % | 8.3 | % | 7.6 | % | |||||||||||||||||
International | 7.2 | % | 3.4 | % | 5.4 | % | |||||||||||||||||
Note: Percentages are based on actual, non-rounded figures and may not sum | |||||||||||||||||||||||
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and 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 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Operational Sales Growth (A) | |||||||||||||||||||||||||||||||||||||||||
2022 ACTUAL vs. 2021 ACTUAL | |||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | SIX MONTHS | Q3 | NINE MONTHS | Q4 | TWELVE MONTHS | |||||||||||||||||||||||||||||||||||
WW As Reported | 6.2 | % | 3.9 | % | 5.0 | % | 2.4 | % | 4.1 | % | (5.4) | % | 1.6 | % | |||||||||||||||||||||||||||
U.S. | 3.8 | % | 3.4 | % | 3.6 | % | 4.4 | % | 3.8 | % | 1.7 | % | 3.3 | % | |||||||||||||||||||||||||||
International | 8.7 | % | 4.5 | % | 6.6 | % | 0.1 | % | 4.5 | % | (12.7) | % | (0.2) | % | |||||||||||||||||||||||||||
WW Currency | (2.9) | (5.2) | (4.1) | (6.3) | (4.8) | (5.3) | (4.9) | ||||||||||||||||||||||||||||||||||
U.S. | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
International | (5.8) | (10.9) | (8.4) | (13.5) | (10.0) | (10.8) | (10.2) | ||||||||||||||||||||||||||||||||||
WW Operational | 9.1 | % | 9.1 | % | 9.1 | % | 8.7 | % | 8.9 | % | (0.1) | % | 6.5 | % | |||||||||||||||||||||||||||
U.S. | 3.8 | % | 3.4 | % | 3.6 | % | 4.4 | % | 3.8 | % | 1.7 | % | 3.3 | % | |||||||||||||||||||||||||||
International | 14.5 | % | 15.4 | % | 15.0 | % | 13.6 | % | 14.5 | % | (1.9) | % | 10.0 | % | |||||||||||||||||||||||||||
Abiomed | (0.1) | ||||||||||||||||||||||||||||||||||||||||
U.S. | (0.3) | ||||||||||||||||||||||||||||||||||||||||
International | 0.0 | ||||||||||||||||||||||||||||||||||||||||
All Other Acquisitions and Divestitures | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.0 | ||||||||||||||||||||||||||||||||||
U.S. | 0.0 | 0.1 | 0.0 | 0.1 | 0.0 | 0.1 | 0.0 | ||||||||||||||||||||||||||||||||||
International | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||
WW Adjusted Operational | 9.1 | % | 9.2 | % | 9.2 | % | 8.8 | % | 9.0 | % | (0.1) | % | 6.5 | % | |||||||||||||||||||||||||||
U.S. | 3.8 | % | 3.5 | % | 3.6 | % | 4.5 | % | 3.8 | % | 1.5 | % | 3.3 | % | |||||||||||||||||||||||||||
International | 14.5 | % | 15.5 | % | 15.1 | % | 13.7 | % | 14.6 | % | (1.8) | % | 10.1 | % | |||||||||||||||||||||||||||
Note: Percentages are based on actual, non-rounded figures and may not sum | |||||||||||||||||||||||||||||||||||||||||
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and 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 Measures | ||||||||||||||||||||||||||
Q1 2023 - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 4,402 | 1,409 | (7,098) | (1,287) | |||||||||||||||||||||
% to Sales | 32.8 | % | 18.8 | % | (34.0) | % | (6.2) | % | ||||||||||||||||||
Intangible asset amortization expense | ||||||||||||||||||||||||||
739 | 383 | — | 1,122 | |||||||||||||||||||||||
In-process research and development Impairments | ||||||||||||||||||||||||||
— | 49 | — | 49 | |||||||||||||||||||||||
Litigation Related | ||||||||||||||||||||||||||
— | — | 6,900 | 6,900 | |||||||||||||||||||||||
Loss/(gain) on securities | ||||||||||||||||||||||||||
38 | 34 | — | 72 | |||||||||||||||||||||||
Restructuring related | ||||||||||||||||||||||||||
130 | — | — | 130 | |||||||||||||||||||||||
Acquisition, integration and divestiture related | ||||||||||||||||||||||||||
— | 42 | — | 42 | |||||||||||||||||||||||
Medical Device Regulation | ||||||||||||||||||||||||||
— | 64 | — | 64 | |||||||||||||||||||||||
COVID-19 Vaccine related costs | ||||||||||||||||||||||||||
444 | — | — | 444 | |||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 5,753 | 1,981 | (198) | 7,536 | |||||||||||||||||||||
% to Sales | 42.9 | % | 26.5 | % | (0.9) | % | 36.1 | % | ||||||||||||||||||
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Q2 2023 QTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 4,812 | 1,671 | (177) | 6,306 | |||||||||||||||||||||
% to Sales | 35.0 | % | 21.5 | % | (0.8) | % | 29.3 | % | ||||||||||||||||||
Intangible asset amortization expense | 748 | 382 | — | 1,130 | ||||||||||||||||||||||
In-process research and development Impairments | — | — | — | — | ||||||||||||||||||||||
Litigation Related | (93) | 60 | 170 | 137 | ||||||||||||||||||||||
Loss/(gain) on securities | 38 | (39) | — | (1) | ||||||||||||||||||||||
Restructuring related | 145 | — | — | 145 | ||||||||||||||||||||||
Acquisition, integration and divestiture related | — | 38 | — | 38 | ||||||||||||||||||||||
Medical Device Regulation | — | 85 | — | 85 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 165 | — | — | 165 | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 5,815 | 2,197 | (7) | 8,005 | |||||||||||||||||||||
% to Sales | 42.3 | % | 28.2 | % | 0.0 | % | 37.2 | % | ||||||||||||||||||
Q2 2023 YTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 9,214 | 3,080 | (7,275) | 5,019 | |||||||||||||||||||||
% to Sales | 33.9 | % | 20.2 | % | (17.2) | % | 11.8 | % | ||||||||||||||||||
Intangible asset amortization expense | 1,487 | 765 | — | 2,252 | ||||||||||||||||||||||
In-process research and development Impairments | — | 49 | — | 49 | ||||||||||||||||||||||
Litigation Related | (93) | 60 | 7,070 | 7,037 | ||||||||||||||||||||||
Loss/(gain) on securities | 76 | (5) | — | 71 | ||||||||||||||||||||||
Restructuring related | 275 | — | — | 275 | ||||||||||||||||||||||
Acquisition, integration and divestiture related | — | 80 | — | 80 | ||||||||||||||||||||||
Medical Device Regulation | — | 149 | — | 149 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 609 | — | — | 609 | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 11,568 | 4,178 | (205) | 15,541 | |||||||||||||||||||||
% to Sales | 42.6 | % | 27.4 | % | (0.5) | % | 36.6 | % |
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Q1 2022 - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 3,873 | 1,441 | (111) | 5,203 | |||||||||||||||||||||
% to Sales | 30.1 | % | 20.7 | % | (0.6) | % | 26.2 | % | ||||||||||||||||||
Intangible asset amortization expense | 760 | 254 | — | 1,014 | ||||||||||||||||||||||
In-process research and development Impairments | 610 | — | — | 610 | ||||||||||||||||||||||
Loss/(gain) on securities | 394 | 17 | — | 411 | ||||||||||||||||||||||
Restructuring related | (14) | 72 | — | 58 | ||||||||||||||||||||||
Medical Device Regulation | — | 60 | — | 60 | ||||||||||||||||||||||
Other | — | — | (7) | (7) | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 5,623 | 1,844 | (118) | 7,349 | |||||||||||||||||||||
% to Sales | 43.7 | % | 26.5 | % | (0.6) | % | 37.0 | % | ||||||||||||||||||
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Q2 2022 QTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 4,365 | 1,110 | (331) | 5,144 | |||||||||||||||||||||
% to Sales | 32.8 | % | 16.1 | % | (1.6) | % | 25.4 | % | ||||||||||||||||||
Intangible asset amortization expense | 736 | 259 | — | 995 | ||||||||||||||||||||||
Litigation Related | 21 | 264 | 100 | 385 | ||||||||||||||||||||||
Loss/(gain) on securities | 102 | 7 | — | 109 | ||||||||||||||||||||||
Restructuring related | 23 | 80 | — | 103 | ||||||||||||||||||||||
Medical Device Regulation | — | 70 | — | 70 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 276 | — | — | 276 | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 5,523 | 1,790 | (231) | 7,082 | |||||||||||||||||||||
% to Sales | 41.5 | % | 25.9 | % | (1.1) | % | 35.0 | % | ||||||||||||||||||
Q2 2022 YTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 8,238 | 2,551 | (442) | 10,347 | |||||||||||||||||||||
% to Sales | 31.5 | % | 18.4 | % | (1.1) | % | 25.8 | % | ||||||||||||||||||
Intangible asset amortization expense | 1,496 | 513 | — | 2,009 | ||||||||||||||||||||||
In-process research and development Impairments | 610 | — | — | 610 | ||||||||||||||||||||||
Litigation Related | 21 | 264 | 100 | 385 | ||||||||||||||||||||||
Loss/(gain) on securities | 496 | 24 | — | 520 | ||||||||||||||||||||||
Restructuring related | 9 | 152 | — | 161 | ||||||||||||||||||||||
Medical Device Regulation | — | 130 | — | 130 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 276 | — | — | 276 | ||||||||||||||||||||||
Other | — | — | (7) | (7) | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 11,146 | 3,634 | (349) | 14,431 | |||||||||||||||||||||
% to Sales | 42.6 | % | 26.2 | % | (0.9) | % | 36.0 | % | ||||||||||||||||||
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Q3 2022 QTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 4,186 | 1,090 | (104) | 5,172 | |||||||||||||||||||||
% to Sales | 31.7 | % | 16.1 | % | (0.5) | % | 25.9 | % | ||||||||||||||||||
Intangible asset amortization expense | 698 | 260 | — | 958 | ||||||||||||||||||||||
Litigation Related | 7 | 212 | — | 219 | ||||||||||||||||||||||
Loss/(gain) on securities | 177 | (13) | — | 164 | ||||||||||||||||||||||
Restructuring related | 23 | 69 | — | 92 | ||||||||||||||||||||||
Medical Device Regulation | — | 78 | — | 78 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 377 | — | — | 377 | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 5,468 | 1,696 | (104) | 7,060 | |||||||||||||||||||||
% to Sales | 41.4 | % | 25.0 | % | (0.5) | % | 35.3 | % | ||||||||||||||||||
Q3 2022 YTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 12,424 | 3,641 | (546) | 15,519 | |||||||||||||||||||||
% to Sales | 31.5 | % | 17.6 | % | (0.9) | % | 25.8 | % | ||||||||||||||||||
Intangible asset amortization expense | 2,194 | 773 | — | 2,967 | ||||||||||||||||||||||
In-process research and development Impairments | 610 | — | — | 610 | ||||||||||||||||||||||
Litigation Related | 28 | 476 | 100 | 604 | ||||||||||||||||||||||
Loss/(gain) on securities | 673 | 11 | — | 684 | ||||||||||||||||||||||
Restructuring related | 32 | 221 | — | 253 | ||||||||||||||||||||||
Medical Device Regulation | — | 208 | — | 208 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 653 | — | — | 653 | ||||||||||||||||||||||
Other | — | — | (7) | (7) | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 16,614 | 5,330 | (453) | 21,491 | |||||||||||||||||||||
% to Sales | 42.2 | % | 25.8 | % | (0.8) | % | 35.8 | % |
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Q4 2022 QTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 3,223 | 806 | (189) | 3,840 | |||||||||||||||||||||
% to Sales | 24.5 | % | 11.9 | % | (0.9) | % | 19.3 | % | ||||||||||||||||||
Intangible asset amortization expense | 717 | 260 | — | 977 | ||||||||||||||||||||||
In-process research and development Impairments | 173 | — | — | 173 | ||||||||||||||||||||||
Litigation Related | 76 | 136 | 50 | 262 | ||||||||||||||||||||||
Loss/(gain) on securities | 23 | (17) | — | 6 | ||||||||||||||||||||||
Restructuring related | 31 | 88 | — | 119 | ||||||||||||||||||||||
Acquisition, integration and divestiture related | (104) | 300 | — | 196 | ||||||||||||||||||||||
Medical Device Regulation | — | 88 | — | 88 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 821 | — | — | 821 | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 4,960 | 1,661 | (139) | 6,482 | |||||||||||||||||||||
% to Sales | 37.7 | % | 24.5 | % | (0.7) | % | 32.5 | % | ||||||||||||||||||
Q4 2022 YTD - Income Before Tax by Segment from Continuing Operations | ||||||||||||||||||||||||||
(Dollars in Millions) | Pharmaceutical | MedTech | Unallocated | Worldwide Total | ||||||||||||||||||||||
Reported Income Before Tax by Segment from Continuing Operations | $ | 15,647 | 4,447 | (735) | 19,359 | |||||||||||||||||||||
% to Sales | 29.8 | % | 16.2 | % | (0.9) | % | 24.2 | % | ||||||||||||||||||
Intangible asset amortization expense | 2,911 | 1,033 | — | 3,944 | ||||||||||||||||||||||
In-process research and development Impairments | 783 | — | — | 783 | ||||||||||||||||||||||
Litigation Related | 104 | 612 | 150 | 866 | ||||||||||||||||||||||
Loss/(gain) on securities | 696 | (6) | — | 690 | ||||||||||||||||||||||
Restructuring related | 63 | 309 | — | 372 | ||||||||||||||||||||||
Acquisition, integration and divestiture related | (104) | 300 | — | 196 | ||||||||||||||||||||||
Medical Device Regulation | — | 296 | — | 296 | ||||||||||||||||||||||
COVID-19 Vaccine related costs | 1,474 | — | — | 1,474 | ||||||||||||||||||||||
Other | — | — | (7) | (7) | ||||||||||||||||||||||
Adjusted Income Before Tax by Segment from Continuing Operations | $ | 21,574 | 6,991 | (592) | 27,973 | |||||||||||||||||||||
% to Sales | 41.0 | % | 25.5 | % | (0.7) | % | 35.0 | % |
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
GAAP to Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||||||||||
$ in Millions | ||||||||||||||||||||||||||||||||||||||
First Quarter | ||||||||||||||||||||||||||||||||||||||
First Quarter April 2, 2023 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | Acquisition, integration and divestiture related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | First Quarter April 2, 2023 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 6,687 | (1,118) | (23) | (206) | 5,340 | ||||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 4,906 | (7) | 4,899 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,455 | (16) | (34) | (16) | 3,389 | |||||||||||||||||||||||||||||||||
Other (Income) / Expense | 6,940 | (4) | (6,900) | (26) | (72) | (222) | (284) | |||||||||||||||||||||||||||||||
In-process research and development Impairments | 49 | (49) | — | |||||||||||||||||||||||||||||||||||
Interest (Income) / Expense | 14 | 14 | ||||||||||||||||||||||||||||||||||||
Restructuring | 130 | (130) | — | |||||||||||||||||||||||||||||||||||
Provision for/(Benefit from) taxes on income | (796) | 177 | 1,622 | 11 | 32 | 5 | 16 | 12 | 105 | (11) | 23 | 1,196 | ||||||||||||||||||||||||||
Net Earnings/(Loss) from Continuing Operations | $ | (491) | 945 | 5,278 | 38 | 98 | 37 | 56 | 52 | 339 | 11 | (23) | 6,340 | |||||||||||||||||||||||||
Second Quarter | ||||||||||||||||||||||||||||||||||||||
Second Quarter July 2, 2023 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | Acquisition, integration and divestiture related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Second Quarter July 2, 2023 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 6,462 | (1,130) | (34) | 38 | — | 5,336 | |||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 5,396 | (8) | 5,388 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,703 | (44) | (46) | 3,613 | ||||||||||||||||||||||||||||||||||
Other (Income) / Expense | (384) | (137) | (38) | 1 | (156) | (714) | ||||||||||||||||||||||||||||||||
In-process research and development Impairments | — | — | ||||||||||||||||||||||||||||||||||||
Interest (Income)/Expense | (109) | (109) | ||||||||||||||||||||||||||||||||||||
Restructuring | 145 | (145) | — | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 930 | 177 | 29 | 37 | 12 | (1) | 15 | 38 | 17 | 21 | 1,275 | |||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 5,376 | 953 | 108 | — | 108 | 26 | — | 71 | 126 | (17) | (21) | 6,730 | |||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||
Six Months July 2, 2023 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | Acquisition, integration and divestiture related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Six Months July 2, 2023 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 13,149 | (2,248) | (57) | (168) | 10,676 | ||||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 10,302 | (15) | 10,287 | |||||||||||||||||||||||||||||||||||
Research and development expense | 7,158 | (16) | (78) | (62) | 7,002 | |||||||||||||||||||||||||||||||||
Other (Income) / Expense | 6,556 | (4) | (7,037) | (64) | (71) | (378) | (998) | |||||||||||||||||||||||||||||||
In-process research and development Impairments | 49 | (49) | — | |||||||||||||||||||||||||||||||||||
Interest (Income)/Expense | (95) | (95) | ||||||||||||||||||||||||||||||||||||
Restructuring | 275 | (275) | — | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 134 | 354 | 1,651 | 11 | 69 | 17 | 15 | 27 | 143 | 6 | 44 | 2,471 | ||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 4,885 | 1,898 | 5,386 | 38 | 206 | 63 | 56 | 123 | 465 | (6) | (44) | 13,070 |
Johnson & Johnson and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
GAAP to Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||||||||||
$ in Millions | ||||||||||||||||||||||||||||||||||||||
First Quarter | ||||||||||||||||||||||||||||||||||||||
First Quarter April 3, 2022 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Other | First Quarter April 3, 2022 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 6,018 | (1,014) | (14) | (22) | 4,968 | ||||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 4,812 | (6) | 4,806 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,355 | (32) | 3,323 | |||||||||||||||||||||||||||||||||||
Other (Income) / Expense | (210) | 20 | (411) | 7 | (594) | |||||||||||||||||||||||||||||||||
In-process research and development Impairments | 610 | (610) | — | |||||||||||||||||||||||||||||||||||
Restructuring | 64 | (64) | — | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 632 | 148 | (53) | 138 | 8 | 96 | 11 | (96) | 79 | (2) | 961 | |||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 4,571 | 866 | 53 | 472 | 50 | 315 | 49 | — | 96 | (79) | (5) | 6,388 | |||||||||||||||||||||||||
Second Quarter | ||||||||||||||||||||||||||||||||||||||
Second Quarter July 3, 2022 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Other | Second Quarter July 3, 2022 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 6,322 | (995) | (14) | (25) | (194) | 5,094 | |||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 5,120 | (6) | 5,114 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,585 | (39) | (110) | 3,436 | ||||||||||||||||||||||||||||||||||
Other (Income) / Expense | (1) | (385) | (18) | (109) | 28 | (485) | ||||||||||||||||||||||||||||||||
In-process research and development Impairments | — | — | ||||||||||||||||||||||||||||||||||||
Restructuring | 71 | (71) | — | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 882 | 148 | (29) | 20 | 25 | 13 | 65 | (2) | (78) | 1,044 | ||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 4,262 | 847 | 414 | — | 83 | 84 | 57 | 211 | 2 | 78 | — | 6,038 | |||||||||||||||||||||||||
Third Quarter | ||||||||||||||||||||||||||||||||||||||
Third Quarter Oct 2, 2022 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Other | Third Quarter Oct 2, 2022 Non-GAAP | |||||||||||||||||||||||||||
Cost of products sold | $ | 6,172 | (958) | (9) | (29) | (102) | 5,074 | |||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 4,975 | (7) | 4,968 | |||||||||||||||||||||||||||||||||||
Research and development expense | 3,485 | (42) | (80) | 3,363 | ||||||||||||||||||||||||||||||||||
Other (Income) / Expense | 226 | (219) | (18) | (164) | (195) | (370) | ||||||||||||||||||||||||||||||||
In-process research and development Impairments | — | — | ||||||||||||||||||||||||||||||||||||
Restructuring | 65 | (65) | — | |||||||||||||||||||||||||||||||||||
Provision for taxes on income | 862 | 146 | (7) | 19 | 43 | 15 | 96 | 36 | (88) | 1,122 | ||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 4,310 | 812 | 226 | — | 73 | 121 | 63 | 281 | (36) | 88 | — | 5,938 |
Johnson & Johnson and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
GAAP to Non-GAAP Reconciliation | |||||||||||||||||||||||||||||||||||||||||
$ in Millions | |||||||||||||||||||||||||||||||||||||||||
Fourth Quarter | |||||||||||||||||||||||||||||||||||||||||
Fourth Quarter Jan 1, 2023 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | Acquisition, integration and divestiture related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Other | Fourth Quarter Jan 1, 2023 Non-GAAP | |||||||||||||||||||||||||||||
Cost of products sold | $ | 6,084 | (977) | (25) | (33) | (160) | 4,889 | ||||||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 5,339 | (9) | 5,330 | ||||||||||||||||||||||||||||||||||||||
Research and development expense | 3,710 | (46) | (114) | 3,550 | |||||||||||||||||||||||||||||||||||||
Other (Income) / Expense | 795 | (262) | (19) | (196) | (6) | (547) | (235) | ||||||||||||||||||||||||||||||||||
In-process research and development Impairments | 173 | (173) | — | ||||||||||||||||||||||||||||||||||||||
Restructuring | 75 | (75) | — | ||||||||||||||||||||||||||||||||||||||
Provision for taxes on income | 613 | 148 | (36) | 40 | 19 | 5 | 2 | 17 | 199 | (4) | 47 | 1,050 | |||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 3,227 | 829 | 298 | 133 | 100 | 191 | 4 | 71 | 622 | 4 | (47) | — | 5,432 | |||||||||||||||||||||||||||
Twelve Months | |||||||||||||||||||||||||||||||||||||||||
Twelve Months Jan 1, 2023 GAAP | Intangible asset amortization | Litigation related | In-process research and development Impairments | Restructuring related | Acquisition, integration and divestiture related | (Loss)/gain on securities | Medical Device Regulation | COVID-19 Vaccine Related Costs | Consumer Health separation tax related costs | Tax legislation and other tax related | Other | Twelve Months Jan 1, 2023 Non-GAAP | |||||||||||||||||||||||||||||
Cost of products sold | $ | 24,596 | (3,944) | (62) | (109) | (456) | 20,025 | ||||||||||||||||||||||||||||||||||
Selling, marketing and admin expenses | 20,246 | (28) | 20,218 | ||||||||||||||||||||||||||||||||||||||
Research and development expense | 14,135 | (159) | (304) | 13,672 | |||||||||||||||||||||||||||||||||||||
Other (Income) / Expense | 810 | (866) | (35) | (196) | (690) | (714) | 7 | (1,684) | |||||||||||||||||||||||||||||||||
In-process research and development Impairments | 783 | (783) | — | ||||||||||||||||||||||||||||||||||||||
Restructuring | 275 | (275) | — | ||||||||||||||||||||||||||||||||||||||
Provision for taxes on income | 2,989 | 590 | (125) | 178 | 66 | 5 | 166 | 56 | 360 | (66) | (40) | (2) | 4,177 | ||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ | 16,370 | 3,354 | 991 | 605 | 306 | 191 | 524 | 240 | 1,114 | 66 | 40 | (5) | 23,796 | |||||||||||||||||||||||||||