Exhibit 99.20
Johnson & Johnson and
Subsidiaries
Condensed Consolidated Statement
of Earnings
(Unaudited; in Millions SECOND QUARTER
Except Per Share Figures)
2005 2004 Percent
Percent Percent Increase
Amount to sales Amount to Sales (Decrease)
Sales to customers $12,762 100.0 $11,484 100.0 11.1
Cost of products sold 3,508 27.5 3,162 27.5 10.9
Selling, marketing and
administrative expenses 4,194 32.8 3,711 32.3 13.0
Research expense 1,487 11.6 1,182 10.3 25.8
In-process research &
development 353 2.8 - -
Interest (income)expense,
net (94) (0.7) 17 0.1
Other (income)expense,
net (88) (0.7) (23) (0.1)
Earnings before provision
for taxes on income 3,402 26.7 3,435 29.9 (1.0)
Provision for taxes on
income 726 5.7 977 8.5 (25.7)
Net earnings $ 2,676 21.0 $ 2,458 21.4 8.9
Net earnings per share
(Diluted) $ 0.89 $ 0.82 8.5
Average shares
outstanding (Diluted) 3,024.7 3,005.3
Effective tax rate 21.3% 28.5%
Adjusted earnings before
provision for taxes and net
earnings
Earnings before provision for taxes (A)
on income $ 3,755 (1) 29.4 $ 3,435 29.9 9.3
Net earnings $ 2,804 (1) 22.0 $ 2,458 21.4 14.1
Net earnings per share
(Diluted) $ 0.93 (1) $ 0.82 13.4
Effective tax rate 25.3% 28.5%
(1) The difference between as reported earnings before provision for taxes
on income and net earnings and adjusted earnings before provision for taxes
on income and net earnings is the exclusion of IPR&D of $353 million before
tax with no tax benefit, or $0.12 per share, and the exclusion of a $225
million tax gain, or $0.08 per share, due to the reversal of a tax liability
related to a technical correction associated with the American Jobs Creation
Act of 2004.
Johnson & Johnson and
Subsidiaries
Condensed Consolidated Statement
of Earnings
SIX MONTHS
2005 2004 Percent
Percent Percent Increase
Amount to sales Amount to Sales (Decrease)
Sales to customers $25,594 100.0 $23,043 100.0 11.1
Cost of products sold 6,990 27.3 6,529 28.3 7.1
Selling, marketing and
administrative expenses 8,237 32.1 7,351 31.9 12.1
Research expense 2,834 11.1 2,278 9.9 24.4
In-process research &
development 353 1.4 - -
Interest (income)expense,
net (163) (0.6) 23 0.1
Other (income)expense, net (121) (0.5) (77) (0.3)
Earnings before provision
for taxes on income 7,464 29.2 6,939 30.1 7.6
Provision for taxes on
income 1,861 7.3 1,988 8.6 (6.4)
Net earnings $ 5,603 21.9 $ 4,951 21.5 13.2
Net earnings per share
(Diluted) $ 1.86 1.65 12.7
Average shares
outstanding (Diluted) 3,021.8 3,004.4
Effective tax rate 24.9% 28.6%
Adjusted earnings before
provision for taxes and net
earnings
Earnings before provision for taxes (A)
on income $ 7,817 (1) 30.5 $ 6,939 30.1 12.7
Net earnings $ 5,731 (1) 22.4 $ 4,951 21.5 15.8
Net earnings per share
(Diluted) $ 1.90 (1) $ 1.65 15.2
Effective tax rate 26.7% 28.6%
(1) The difference between as reported earnings before provision for
taxes on income and net earnings and adjusted earnings before provision
for taxes on income and net earnings is the exclusion of IPR&D of $353
million before tax with no tax benefit, or $0.12 per share, and the
exclusion of a $225 million tax gain, or $0.08 per share, due to the
reversal of a tax liability related to a technical correction associated
with the American Jobs Creation Act of 2004.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) SECOND QUARTER
Percent Change
Oper-
2005 2004 Total ations Currency
Sales to customers by
segment of business
Consumer
U.S. $1,092 987 10.6% 10.6 -
International 1,186 1,013 17.1 11.6 5.5
2,278 2,000 13.9 11.1 2.8
Pharmaceutical
U.S. 3,595 3,643 (1.3) (1.3) -
International 2,033 1,784 14.0 9.2 4.8
5,628 5,427 3.7 2.1 1.6
Med Devices & Diagnostics
U.S. 2,378 2,038 16.7 16.7 -
International 2,478 2,019 22.7 18.1 4.6
4,856 4,057 19.7 17.4 2.3
U.S. 7,065 6,668 6.0 6.0 -
International 5,697 4,816 18.3 13.4 4.9
Worldwide $12,762 11,484 11.1% 9.1 2.0
(Unaudited; Dollars in Millions) SIX MONTHS
Percent Change
Oper-
2005 2004 Total ations Currency
Sales to customers by
segment of business
Consumer
U.S. $2,206 2,067 6.7% 6.7 -
International 2,352 1,980 18.8 13.4 5.4
4,558 4,047 12.6 10.0 2.6
Pharmaceutical
U.S. 7,378 7,286 1.3 1.3 -
International 4,005 3,517 13.9 8.8 5.1
11,383 10,803 5.4 3.8 1.6
Med Devices & Diagnostics
U.S. 4,739 4,233 12.0 12.0 -
International 4,914 3,960 24.1 19.1 5.0
9,653 8,193 17.8 15.4 2.4
U.S. 14,323 13,586 5.4 5.4 -
International 11,271 9,457 19.2 14.1 5.1
Worldwide $25,594 23,043 11.1% 9.0 2.1
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) SECOND QUARTER
Percent Change
Oper-
2005 2004 Total ations Currency
Sales to customers by
geographic area
U.S. $7,065 6,668 6.0% 6.0 -
Europe 3,186 2,779 14.6 10.0 4.6
Western Hemisphere
excluding U.S. 751 622 20.7 10.7 10.0
Asia-Pacific, Africa 1,760 1,415 24.4 21.3 3.1
International 5,697 4,816 18.3 13.4 4.9
Worldwide $12,762 11,484 11.1% 9.1 2.0
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) SIX MONTHS
Percent Change
Oper-
2005 2004 Total ations Currency
Sales to customers by
geographic area
U.S. $14,323 13,586 5.4% 5.4 -
Europe 6,362 5,486 16.0 10.7 5.3
Western Hemisphere
excluding U.S. 1,477 1,219 21.2 13.1 8.1
Asia-Pacific, Africa 3,432 2,752 24.7 21.3 3.4
International 11,271 9,457 19.2 14.1 5.1
Worldwide $25,594 23,043 11.1% 9.0 2.1
(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, they may assist investors in evaluating the Company's
results of operations period over period. In various periods, these
measures may exclude such items as business development activities (including
IPR&D at acquisition or upon attainment of milestones and any extraordinary
expenses), strategic developments (including restructuring and product line
changes), significant litigation, and changes in applicable laws and
regulations (including significant accounting or tax matters). Special items
may be highly variable, difficult to predict, and of a size that sometimes
has substantial impact on the Company's reported results of operations for a
period. Management uses these measures internally for planning, forecasting
and evaluating the performances of the Company's businesses, including
allocating resources and evaluating results relative to employee performance
compensation targets. Unlike earnings before provision for taxes on income,
net earnings, net earnings per share (diluted), and effective tax rate prepared
in accordance with GAAP, adjusted earnings before provision for taxes on income,
adjusted net earnings, adjusted net earnings per share (diluted), and adjusted
effective tax rate may not be comparable with the calculation of similar
measures for other companies. These non-GAAP financial measures are presented
solely to permit investors to more fully understand how management assesses the
performance of the Company. The limitations of using these non-GAAP financial
measures as performance measures are that they provide a view of the Company's
results of operations without including all events during a period, such as the
effects of an acquisition, merger-related or other restructuring charges, or
amortization of purchased intangibles, 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.