EX-99.2O OTH FIN ST 3 ninetyninetwentyqthree.txt Exhibit 99-2O Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by segment of business Consumer U.S. $1,075 $1,023 5.1 % 5.1 - International 1,156 1,001 15.5 12.1 3.4 2,231 2,024 10.2 8.5 1.7 Pharmaceutical U.S. 3,527 3,694 (4.5) (4.5) - International 1,930 1,791 7.8 6.0 1.8 5,457 5,485 (0.5) (1.1) 0.6 Med Device & Diagnostics U.S. 2,365 2,073 14.1 14.1 - International 2,257 1,971 14.5 13.3 1.2 4,622 4,044 14.3 13.7 0.6 U.S. 6,967 6,790 2.6 2.6 - International 5,343 4,763 12.2 10.3 1.9 Worldwide $12,310 $11,553 6.6 % 5.8 0.8 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) NINE MONTHS 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by segment of business Consumer U.S. $3,281 3,090 6.2 % 6.2 - International 3,508 2,981 17.7 13.1 4.6 6,789 6,071 11.8 9.5 2.3 Pharmaceutical U.S. 10,905 10,980 (0.7) (0.7) - International 5,935 5,308 11.8 7.9 3.9 16,840 16,288 3.4 2.1 1.3 Med Device & Diagnostics U.S. 7,104 6,306 12.7 12.7 - International 7,171 5,931 20.9 17.1 3.8 14,275 12,237 16.7 14.9 1.8 U.S. 21,290 20,376 4.5 4.5 - International 16,614 14,220 16.8 12.8 4.0 Worldwide $37,904 34,596 9.6 % 7.9 1.7 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by geographic area U.S. $6,967 $6,790 2.6 % 2.6 - Europe 2,860 2,638 8.4 8.9 (0.5) Western Hemisphere 783 639 22.5 10.5 12.0 excluding U.S. Asia-Pacific, Africa 1,700 1,486 14.4 12.7 1.7 International 5,343 4,763 12.2 10.3 1.9 Worldwide $12,310 $11,553 6.6 % 5.8 0.8 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) NINE MONTHS 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by geographic area U.S. $21,290 $20,376 4.5 % 4.5 - Europe 9,222 8,124 13.5 10.1 3.4 Western Hemisphere 2,259 1,858 21.6 12.2 9.4 excluding U.S. Asia-Pacific, Africa 5,133 4,238 21.1 18.3 2.8 International 16,614 14,220 16.8 12.8 4.0 Worldwide $37,904 $34,596 9.6 % 7.9 1.7 Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) THIRD QUARTER 2005 2005 2004 2004 Percent Amount Percent Amount Percent Increase to to (Decrease) Sales Sales Sales to customers $12,310 100.0 $11,553 100.0 6.6 Cost of products 3,340 27.1 3,187 27.6 4.8 sold Selling, marketing 4,078 33.1 3,854 33.3 5.8 and administrative expenses Research Expense 1,502 12.2 1,198 10.4 25.4 In-process research - - 18 0.2 & development Interest (income) (101) (0.8) (19) (0.2) expense, net Other (income) (63) (0.5) 41 0.4 expense, net Earnings before 3,554 28.9 3,274 28.3 8.6 provision for taxes on income Provision for taxes 929 7.6 933 8.0 (0.4) on income Net earnings $2,625 21.3 $2,341 20.3 12.1 Net earnings per $0.87 $0.78 11.5 share (Diluted) Average shares 3,017.1 3,009.0 outstanding (Diluted) Effective tax rate 26.1 % 28.5 % Adjusted earnings before provision for taxes and net earnings (A) Earnings before $3,554 28.9 $3,292(1) 28.5 8.0 provision for taxes on income Net earnings $2,625 21.3 $2,353(1) 20.4 11.6 Net earnings per $0.87 $0.78(1) 11.5 share (Diluted) Effective tax rate 26.1 % 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 $18 million and $12 million respectively, which is in-process research & development charges. Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) NINE MONTHS 2005 2005 2004 2004 Percent Amount Percent Amount Percent Increase to to (Decrease) Sales Sales Sales to customers $37,904 100.0 $34,596 100.0 9.6 Cost of products 10,330 27.3 9,716 28.1 6.3 sold Selling, marketing 12,315 32.5 11,205 32.4 9.9 and administrative expenses Research Expense 4,336 11.4 3,476 10.0 24.7 In-process 353 0.9 18 0.1 research & development Interest (income) (264) (0.7) 4 0.0 expense, net Other (income) (184) (0.5) (36) (0.1) expense, net Earnings before 11,018 29.1 10,213 29.5 7.9 provision for taxes on income Provision for 2,790 7.4 2,921 8.4 (4.5) taxes on income Net earnings $8,228 21.7 $7,292 21.1 12.8 Net earnings per $2.73 $2.43 12.3 share (Diluted) Average shares 3,019.0 3,004.4 outstanding (Diluted) Effective tax rate 25.3 % 28.6 % Adjusted earnings before provision for taxes and net earnings (A) Earnings before $11,371(1) 30.0 $10,231(2) 29.6 11.1 provision for taxes on income Net earnings $8,356(1) 22.0 $7,304(2) 21.1 14.4 Net earnings per $2.77(1) $2.43(2) 14.0 share (Diluted) Effective tax 26.5 % 28.6 % rate (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. (2) 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 $18 million and $12 million respectively, which is in-process research & development charges. (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.