EX-99.2O OTH FIN ST 3 ninetyninetwenty.txt Exhibit 99.20 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FOURTH QUARTER Percent Change Opera- 2006 2005 Total tions Currency Sales to customers by segment of business Consumer U.S. $ 1,182 1,124 5.2 % 5.2 - International 1,383 1,183 16.9 11.1 5.8 2,565 2,307 11.2 8.2 3.0 Pharmaceutical U.S. 3,868 3,573 8.3 8.3 - International 2,082 1,909 9.1 3.5 5.6 5,950 5,482 8.5 6.6 1.9 Med Devices & Diagnostics U.S. 2,491 2,390 4.2 4.2 - International 2,676 2,431 10.1 5.4 4.7 5,167 4,821 7.2 4.8 2.4 U.S. 7,541 7,087 6.4 6.4 - International 6,141 5,523 11.2 6.0 5.2 Worldwide $13,682 12,610 8.5 % 6.2 2.3 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) TWELVE MONTHS Percent Change Opera- 2006 2005 Total tions Currency Sales to customers by segment of business Consumer U.S. $ 4,573 4,405 3.8 % 3.8 - International 5,201 4,691 10.9 8.7 2.2 9,774 9,096 7.5 6.4 1.1 Pharmaceutical U.S. 15,092 14,478 4.2 4.2 - International 8,175 7,844 4.2 3.4 0.8 23,267 22,322 4.2 3.9 0.3 Med Devices & Diagnostics U.S. 10,110 9,494 6.5 6.5 - International 10,173 9,602 5.9 6.2 (0.3) 20,283 19,096 6.2 6.4 (0.2) U.S. 29,775 28,377 4.9 4.9 - International 23,549 22,137 6.4 5.8 0.6 Worldwide $53,324 50,514 5.6 % 5.3 0.3 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FOURTH QUARTER Percent Change Opera- 2006 2005 Total tions Currency Sales to customers by geographic area U.S. $ 7,541 7,087 6.4 % 6.4 - Europe 3,322 2,965 12.0 4.1 7.9 Western Hemisphere excluding U.S. 943 828 13.9 11.2 2.7 Asia-Pacific, Africa 1,876 1,730 8.4 6.6 1.8 International 6,141 5,523 11.2 6.0 5.2 Worldwide $13,682 12,610 8.5 % 6.2 2.3 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) TWELVE MONTHS Percent Change Opera- 2006 2005 Total tions Currency Sales to customers by geographic area U.S. $29,775 28,377 4.9 % 4.9 - Europe 12,786 12,187 4.9 4.4 0.5 Western Hemisphere excluding U.S. 3,542 3,087 14.7 9.3 5.4 Asia-Pacific, Africa 7,221 6,863 5.2 6.6 (1.4) International 23,549 22,137 6.4 5.8 0.6 Worldwide $53,324 50,514 5.6 % 5.3 0.3 Johnson & Johnson and Subsidiaries (1) Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) FOURTH QUARTER 2006 2006 2005 2005 Percent Amount Percent Amount Percent Increase to Sales to Sales (Decrease) Sales to customers $ 13,682 100.0 $12,610 100.0 8.5 Cost of products sold 4,007 29.3 3,638 28.9 10.1 Selling, marketing and administrative expenses 4,696 34.3 4,645 36.8 1.1 Research expense 2,046 15.0 2,014 16.0 1.6 In-process research & development 320 2.3 9 0.1 Interest (income) expense, net (195) (1.4) (169) (1.4) Other (income) expense, net 100 0.7 (30) (0.2) Earnings before provision for taxes on income 2,708 19.8 2,503 19.8 8.2 Provision for taxes on income 540 4.0 408 3.2 32.4 Net earnings $ 2,168 15.8 $ 2,095 16.6 3.5 Net earnings per share (Diluted) $ 0.74 $ 0.70 5.7 Average shares outstanding (Diluted) 2,930.7 3,013.5 Effective tax rate 19.9 % 16.3 % Adjusted earnings before provision for taxes and net earnings(A) Earnings before provision for taxes on income $ 3,028(2) 22.1 $ 2,512(3) 19.9 20.5 Net earnings $ 2,385(2) 17.4 $ 2,101(3) 16.7 13.5 Net earnings per share (Diluted)$ 0.81(2) $ 0.70(3) 15.7 Effective tax rate 21.2% 16.4% (1) The company has adopted SFAS No. 123 (R), Share Based Payment, applying the modified retrospective transition method. Previously reported financial statements have been restated accordingly. (2) The difference between as reported earnings before provision for taxes on income and net earnings and net earnings per share (diluted) and adjusted earnings before provision for taxes on income and net earnings and net earnings per share (diluted) is the exclusion of IPR&D charges of $320 million, $217 million, and $0.07 per share, respectively. (3) 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 IPR&D charges of $9 million and $6 million, respectively. Johnson & Johnson and Subsidiaries (1) Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) TWELVE MONTHS 2006 2006 2005 2005 Percent Amount Percent Amount Percent Increase to Sales to Sales (Decrease) Sales to customers $53,324 100.0 $50,514 100.0 5.6 Cost of products sold 15,057 28.2 14,010 27.7 7.5 Selling, marketing and administrative expenses 17,433 32.7 17,211 34.1 1.3 Research expense 7,125 13.4 6,462 12.8 10.3 In-process research & development 559 1.0 362 0.7 Interest (income) expense, net (766) (1.4) (433) (0.9) Other (income) expense, net (671) (1.3) (214) (0.4) Earnings before provision for taxes on income 14,587 27.4 13,116 26.0 11.2 Provision for taxes on income 3,534 6.7 3,056 6.1 15.6 Net earnings $11,053 20.7 $10,060 19.9 9.9 Net earnings per share (Diluted) $3.73 $3.35 11.3 Average shares outstanding (Diluted) 2,961.0 3,002.8 Effective tax rate 24.2 % 23.3 % Adjusted earnings before provision for taxes and net earnings(A) Earnings before provision for taxes on income $14,524(2) 27.2 $13,478(3) 26.7 7.8 Net earnings $11,133(2) 20.9 $10,194(3) 20.2 9.2 Net earnings per share (Diluted) $3.76(2) $3.39(3) 10.9 Effective tax rate 23.3% 24.4% (1) The company has adopted SFAS No. 123 (R), Share Based Payment, applying the modified retrospective transition method. Previously reported financial statements have been restated accordingly. (2) The difference between as reported earnings before provision for taxes on income and net earnings and net earnings per share (diluted) and adjusted earnings before provision for taxes on income and net earnings and net earnings per share (diluted) is the exclusion of the Guidant acquisition termination fee of $622 million, $368 million, and $0.12 per share, respectively, and the exclusion of IPR&D charges of $559 million, $448 million, and $0.15 per share, respectively. (3) The difference between as reported earnings before provision for taxes on income, net earnings and net earnings per share (diluted) and adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of IPR&D charges of $362 million, $359 million, and $0.12 per share, respectively. Adjusted net earnings and net earnings per share (diluted) also exclude a tax gain of $225 million and $0.08 per share, respectively, due to the reversal of a tax liability related to a technical correction associated with the American Jobs Creation Act of 2004. (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.