EX-99.2O OTH FIN ST 4 firstq20108k9920.htm firstq20108k9920.htm
Exhbiti 99.2O

 
Johnson & Johnson and Subsidiaries
                       
Condensed Consolidated Statement of Earnings
               
                         
(Unaudited; in Millions Except Per Share Figures)
FIRST QUARTER
 
   
2010
 
2009
   
Percent
 
       
Percent
     
Percent
   
Increase
 
   
Amount
 
to Sales
 
Amount
 
to Sales
   
(Decrease)
 
Sales to customers
    $        15,631     100.0     $        15,026     100.0       4.0  
Cost of products sold
    4,528     29.0     4,251     28.3       6.5  
Selling, marketing and administrative expenses
    4,779     30.5     4,608     30.7       3.7  
Research expense
    1,557     10.0     1,518     10.1       2.6  
Interest (income)expense, net
    81     0.5     81     0.5          
Other (income)expense, net
    (1,594 )   (10.2 )        (75)     (0.5 )        
Earnings before provision for taxes on income
    6,280     40.2     4,643     30.9       35.3  
Provision for taxes on income
    1,754     11.2     1,136     7.6       54.4  
Net earnings
    $          4,526     29.0     $          3,507     23.3       29.1  
                                   
                                   
Net earnings per share  (Diluted)
    $            1.62           $            1.26             28.6  
                                   
Average shares outstanding  (Diluted)
    2,797.3           2,789.8                
                                   
Effective tax rate
    27.9  
%
        24.5
 
         
                                   
Adjusted earnings before provision for taxes and net earnings(A)
                             
  Earnings before provision for taxes on income
$          4,783  (1)   30.6     $          4,643     30.9       3.0  
  Net earnings
    $          3,616  (1)   23.1     $          3,507     23.3       3.1  
  Net earnings per share  (Diluted)
    $            1.29  (1)         $            1.26             2.4  
  Effective tax rate
    24.4 %         24.5 %              
                                   
(1) The difference between as reported earnings and as adjusted earnings before provision for taxes on income, net earnings and net earnings
 
per share (diluted) is the exclusion of income from net litigation of $1,497 million, $910 million and $0.33 per share, respectively.
 


(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, 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.

 
 
 
 

Johnson & Johnson and Subsidiaries
                             
Supplementary Sales Data
                             
                               
(Unaudited; Dollars in Millions)
 
FIRST QUARTER
 
               
Percent Change
 
   
2010
   
2009
   
Total
   
Operations
   
Currency
 
Sales to customers by
                             
segment of business
                             
                               
Consumer
                             
    U.S.
 $   1,560       1,726       (9.6 ) %     (9.6 )     -  
    International
    2,206       1,985       11.1       1.4       9.7  
      3,766       3,711       1.5       (3.7 )     5.2  
                                         
Pharmaceutical
                                       
    U.S.
    3,206       3,674       (12.7 )     (12.7 )     -  
    International
    2,432       2,106       15.5       6.6       8.9  
      5,638       5,780       (2.5 )     (5.7 )     3.2  
                                         
Med Devices & Diagnostics
                                       
    U.S.
    2,886       2,652       8.8       8.8       -  
    International
    3,341       2,883       15.9       7.5       8.4  
      6,227       5,535       12.5       8.1       4.4  
                                         
U.S.
    7,652       8,052       (5.0 )     (5.0 )     -  
International
    7,979       6,974       14.4       5.5       8.9  
Worldwide
  $ 15,631       15,026       4.0 %     (0.1 )     4.1  



 
 
 
 

Johnson & Johnson and Subsidiaries
                             
Supplementary Sales Data
                             
                               
(Unaudited; Dollars in Millions)
 
FIRST QUARTER
 
               
Percent Change
 
   
2010
   
2009
   
Total
   
Operations
   
Currency
 
Sales to customers by
                             
geographic area
                             
                               
U.S.
  $ 7,652       8,052       (5.0 ) %     (5.0 )     -  
                                         
Europe
    4,102       3,671       11.7       4.6       7.1  
Western Hemisphere excluding U.S.
    1,280       1,062       20.5       3.5       17.0  
Asia-Pacific, Africa
    2,597       2,241       15.9       7.8       8.1  
International
    7,979       6,974       14.4       5.5       8.9  
                                         
Worldwide
  $ 15,631       15,026       4.0 %     (0.1 )     4.1  


 
 
 
 

          REPORTED SALES vs. PRIOR PERIOD
            $MM
                   
         
FIRST QUARTER
             
% Change
         
2010
2009
Reported
Operational (1)
Currency
                   
CONSUMER SEGMENT (2)
           
                   
SKIN CARE
               
US
       
        452
        423
6.9%
6.9%
 -
Intl
       
        468
        419
11.7%
2.4%
9.3%
WW
       
        920
        842
9.3%
4.6%
4.7%
         
 
 
     
BABY CARE
               
US
       
        103
        102
1.0%
1.0%
 -
Intl
       
        426
        387
10.1%
1.2%
8.9%
WW
       
        529
        489
8.2%
1.2%
7.0%
         
 
 
     
ORAL CARE
               
US
       
        174
        188
(7.4%)
(7.4%)
 -
Intl
       
        207
        177
16.9%
5.1%
11.8%
WW
       
        381
        365
4.4%
(1.3%)
5.7%
         
 
 
     
OTC/NUTRITIONALS
             
US
       
        542
        726
(25.3%)
(25.3%)
 -
Intl
       
        665
        622
6.9%
(2.7%)
9.6%
WW
       
     1,207
     1,348
(10.5%)
(15.0%)
4.5%
         
 
 
     
WOMEN'S HEALTH
             
US
       
        146
        149
(2.0%)
(2.0%)
 -
Intl
       
        323
        274
17.9%
7.8%
10.1%
WW
       
        469
        423
10.9%
4.4%
6.5%
         
 
 
     
WOUND CARE/OTHER
           
US
       
        143
        138
3.6%
3.6%
 -
Intl
       
        117
        106
10.4%
 -
10.4%
WW
       
        260
        244
6.6%
2.1%
4.5%
         
 
 
     
TOTAL CONSUMER
             
US
       
     1,560
     1,726
(9.6%)
(9.6%)
 -
Intl
       
     2,206
     1,985
11.1%
1.4%
9.7%
WW
       
     3,766
     3,711
1.5%
(3.7%)
5.2%
                   
Note: See footnotes at end of schedule
           
 
 
 
 
 
 

 
          REPORTED SALES vs. PRIOR PERIOD
            $MM
                   
         
FIRST QUARTER
             
% Change
         
2010
2009
Reported
Operational (1)
Currency
                 
PHARMACEUTICAL SEGMENT  (2) (5)
                 

ACIPHEX/PARIET
                 
US
       
        119
        138
(13.8%)
(13.8%)
 -
 
Intl
       
        141
        125
12.8%
3.1%
9.7%
 
WW
       
        260
        263
(1.1%)
(5.7%)
4.6%
 
         
 
 
     
 
CONCERTA
                 
US
       
        231
        269
(14.1%)
(14.1%)
 -
 
Intl
       
          98
          75
30.7%
17.3%
13.4%
 
WW
       
        329
        344
(4.4%)
(7.3%)
2.9%
 
         
 
 
     
 
DURAGESIC/FENTANYL TRANSDERMAL
             
US
       
          38
          75
(49.3%)
(49.3%)
 -
 
Intl
       
        146
        156
(6.4%)
(13.4%)
7.0%
 
WW
       
        184
        231
(20.3%)
(25.1%)
4.8%
 
         
 
 
       
LEVAQUIN/FLOXIN
               
US
       
        363
        408
(11.0%)
(11.0%)
 -
 
Intl
       
            8
          17
(52.9%)
(56.3%)
3.4%
 
WW
       
        371
        425
(12.7%)
(12.8%)
0.1%
 
         
 
 
     
 
PREZISTA
                 
US
       
89
72
23.6%
23.6%
 -
 
Intl
       
98
50
96.0%
80.3%
15.7%
 
WW
       
187
122
53.3%
46.8%
6.5%
 
                     
PROCRIT/EPREX
                 
US
       
        290
        321
(9.7%)
(9.7%)
 -
 
Intl
       
        233
        229
1.7%
(6.2%)
7.9%
 
WW
       
        523
        550
(4.9%)
(8.2%)
3.3%
 
         
 
 
     
 
REMICADE
                 
US
       
        780
        737
5.8%
5.8%
 -
 
US Exports (3)
     
        400
        286
39.9%
39.9%
 -
 
Intl
       
            6
            5
20.0%
19.9%
0.1%
   
WW
       
     1,186
     1,028
15.4%
15.4%
 -
 

Note: See footnotes at end of schedule
 
 
 
 

          REPORTED SALES vs. PRIOR PERIOD
            $MM
                   
         
FIRST QUARTER
             
% Change
         
2010
2009
Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT  (2) (5) (Continued)
 
RISPERDAL/RISPERIDONE
             
US
       
            5
        118
(95.8%)
(95.8%)
 -
 
Intl
       
        133
        157
(15.3%)
(20.1%)
4.8%
 
WW
       
        138
        275
(49.8%)
(52.5%)
2.7%
 
         
 
 
       
RISPERDAL CONSTA
               
US
       
        117
        126
(7.1%)
(7.1%)
 -
 
Intl
       
        262
        199
31.7%
21.4%
10.3%
 
WW
       
        379
        325
16.6%
10.3%
6.3%
 
         
 
 
       
TOPAMAX
                 
US
       
          57
        495
(88.5%)
(88.5%)
 -
 
Intl
       
          91
        107
(15.0%)
(21.6%)
6.6%
 
WW
       
        148
        602
(75.4%)
(76.6%)
1.2%
 
         
 
 
       
VELCADE
                 
US
       
 -
 -
 -
 -
 -
 
Intl
       
        261
        192
35.9%
26.3%
9.6%
 
WW
       
        261
        192
35.9%
26.3%
9.6%
 
                     
OTHER
                   
US
       
        717
        629
14.0%
14.0%
 -
 
Intl
       
        955
        794
20.3%
11.1%
9.2%
 
WW
       
     1,672
     1,423
17.5%
12.4%
5.1%
 
         
 
 
       
TOTAL PHARMACEUTICAL
             
US
       
     3,206
     3,674
(12.7%)
(12.7%)
 -
 
Intl
       
     2,432
     2,106
15.5%
6.6%
8.9%
 
WW
       
     5,638
     5,780
(2.5%)
(5.7%)
3.2%
 
                     
MAJOR NEW PHARMACEUTICAL PRODUCTS (4)
           
                     
INVEGA
                   
US
       
69
66
4.5%
4.5%
 -
 
Intl
       
39
25
56.0%
43.2%
12.8%
 
WW
       
108
91
18.7%
15.1%
3.6%
 
 
Note: See footnotes at end of schedule
 
 
 
 
 
 
 
          REPORTED SALES vs. PRIOR PERIOD
            $MM
                   
         
FIRST QUARTER
             
% Change
         
2010
2009
Reported
Operational (1)
Currency
 
MEDICAL DEVICES AND DIAGNOSTICS   (2)
                 

CORDIS (6)
                 
US
       
        251
        246
2.0%
2.0%
 -
 
Intl
       
        421
        422
(0.2%)
(6.3%)
6.1%
 
WW
       
        672
        668
0.6%
(3.3%)
3.9%
 
         
 
 
       
DEPUY
                   
US
       
        814
        766
6.3%
6.3%
 -
 
Intl
       
        640
        526
21.7%
11.2%
10.5%
 
WW
       
     1,454
     1,292
12.5%
8.2%
4.3%
 
                     
DIABETES CARE
                 
US
       
        290
        270
7.4%
7.4%
 -
 
Intl
       
        307
        271
13.3%
5.4%
7.9%
 
WW
       
        597
        541
10.4%
6.4%
4.0%
 
         
 
 
       
ETHICON
                 
US
       
        510
        405
25.9%
25.9%
 -
 
Intl
       
        637
        548
16.2%
7.6%
8.6%
 
WW
       
     1,147
        953
20.4%
15.5%
4.9%
 
         
 
 
       
ETHICON ENDO-SURGERY
             
US
       
        483
        454
6.4%
6.4%
 -
 
Intl
       
        685
        561
22.1%
12.9%
9.2%
 
WW
       
     1,168
     1,015
15.1%
10.0%
5.1%
 
         
 
 
       
ORTHO-CLINICAL DIAGNOSTICS
             
US
       
        288
        277
4.0%
4.0%
 -
 
Intl
       
        237
        190
24.7%
16.1%
8.6%
 
WW
       
        525
        467
12.4%
8.9%
3.5%
 
         
 
 
       
VISION CARE
                 
US
       
        249
        234
6.4%
6.4%
 -
 
Intl
       
        415
        365
13.7%
6.9%
6.8%
 
WW
       
        664
        599
10.9%
6.8%
4.1%
 
         
 
 
       
TOTAL MEDICAL DEVICES AND DIAGNOSTICS
           
US
       
     2,886
     2,652
8.8%
8.8%
 -
 
Intl
       
     3,341
     2,883
15.9%
7.5%
8.4%
 
WW
       
     6,227
     5,535
12.5%
8.1%
4.4%
 

(1) Operational growth excludes the effect of currency
               
(2) Select areas (unaudited)
   
 
           
(3) Reported in U.S. sales
                 
(4) Included in Other
(5) Prior year conforms to current presentation
   
(6) Includes sales of Drug-Eluting Stents for Q1 2010 of $60, $131 and $191MM Domestic, International and Worldwide, respectively
      Includes sales of Drug-Eluting Stents for Q1 2009 of $67, $184 and $251MM Domestic, International and Worldwide, respectively