EX-99.2O OTH FIN ST 4 exhibit9920.htm exhibit9920.htm
Exhibit 99.2O

 
Johnson & Johnson and Subsidiaries
                                     
Supplementary Sales Data
                                     
                                       
(Unaudited; Dollars in Millions)
FOURTH QUARTER
TWELVE MONTHS
         
Percent Change
         
Percent Change
 
2007
 
2006
 
Total
 
Operations
 
Currency
 
2007
 
2006
 
Total
 
Operations
 
Currency
Sales to customers by
                                     
segment of business
                                     
                                       
Consumer
                                     
    U.S.
 $      1,626
 
    1,182
 
      37.6
%
          37.6
 
             -
 
 $   6,408
 
    4,573
 
      40.1
%
           40.1
 
                 -
    International
         2,184
 
    1,383
 
      57.9
 
          46.8
 
       11.1
 
      8,085
 
    5,201
 
      55.5
 
           47.8
 
             7.7
 
         3,810
 
    2,565
 
      48.5
 
          42.5
 
         6.0
 
    14,493
 
    9,774
 
      48.3
 
           44.2
 
             4.1
                                       
Pharmaceutical
                                     
    U.S.
         3,944
 
    3,868
 
        2.0
 
            2.0
 
             -
 
    15,603
 
  15,092
 
        3.4
 
             3.4
 
                 -
    International
         2,453
 
    2,082
 
      17.8
 
            6.8
 
       11.0
 
      9,263
 
    8,175
 
      13.3
 
             5.9
 
             7.4
 
         6,397
 
    5,950
 
        7.5
 
            3.7
 
         3.8
 
    24,866
 
  23,267
 
        6.9
 
             4.3
 
             2.6
                                       
Med Devices & Diagnostics
                                     
    U.S.
         2,661
 
    2,491
 
        6.8
 
            6.8
 
             -
 
    10,433
 
  10,110
 
        3.2
 
             3.2
 
                 -
    International
         3,089
 
    2,676
 
      15.4
 
            5.6
 
         9.8
 
    11,303
 
  10,173
 
      11.1
 
             4.6
 
             6.5
 
         5,750
 
    5,167
 
      11.3
 
            6.2
 
         5.1
 
    21,736
 
  20,283
 
        7.2
 
             3.9
 
             3.3
                                       
U.S.
         8,231
 
    7,541
 
        9.1
 
            9.1
 
             -
 
    32,444
 
  29,775
 
        9.0
 
             9.0
 
                 -
International
         7,726
 
    6,141
 
      25.8
 
          15.3
 
       10.5
 
    28,651
 
  23,549
 
      21.7
 
           14.6
 
             7.1
Worldwide
 $    15,957
 
  13,682
 
      16.6
%
          11.9
 
         4.7
 
 $ 61,095
 
  53,324
 
      14.6
%
           11.5
 
             3.1
 
 

Johnson & Johnson and Subsidiaries
                                   
Supplementary Sales Data
                                     
                                       
(Unaudited; Dollars in Millions)
FOURTH QUARTER
 
TWELVE MONTHS
         
Percent Change
         
Percent Change
 
2007
 
2006
 
Total
 
Operations
 
Currency
 
2007
 
2006
 
Total
 
Operations
 
Currency
Sales to customers by
                                     
geographic area
                                     
U.S.
 $   8,231
 
    7,541
 
           9.1
%
            9.1
 
           -
 
 $ 32,444
 
  29,775
 
           9.0
%
            9.0
 
             -
                                       
Europe
      4,159
 
    3,322
 
         25.2
 
          13.2
 
       12.0
 
    15,644
 
  12,786
 
         22.4
 
          13.2
 
         9.2
Western Hemisphere excluding U.S.
      1,309
 
       943
 
         38.8
 
          26.1
 
       12.7
 
      4,681
 
    3,542
 
         32.2
 
          25.5
 
         6.7
Asia-Pacific, Africa
      2,258
 
    1,876
 
         20.4
 
          13.6
 
         6.8
 
      8,326
 
    7,221
 
         15.3
 
          11.8
 
         3.5
International
      7,726
 
    6,141
 
         25.8
 
          15.3
 
       10.5
 
    28,651
 
  23,549
 
         21.7
 
          14.6
 
         7.1
                                       
Worldwide
 $ 15,957
 
  13,682
 
         16.6
%
          11.9
 
         4.7
 
 $ 61,095
 
  53,324
 
         14.6
%
          11.5
 
         3.1
 

 

Johnson & Johnson and Subsidiaries
                 
Condensed Consolidated Statement of Earnings
                 
                   
                   
(Unaudited; in Millions Except Per Share Figures)
FOURTH QUARTER
                   
 
2007
 
2006
 
Percent
     
Percent
     
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $    15,957
 
100.0
 
 $    13,682
 
100.0
 
16.6
Cost of products sold
4,734
 
29.7
 
4,007
 
29.3
 
18.1
Selling, marketing and administrative expenses
5,721
 
35.8
 
4,696
 
34.3
 
21.8
Research expense
2,328
 
14.6
 
2,046
 
15.0
 
13.8
In-process research & development (IPR&D)
-
 
                 -
 
320
 
2.3
   
Restructuring expense
-
 
                 -
 
-
 
                 -
   
Interest (income)expense, net
(35)
 
(0.2)
 
(195)
 
(1.4)
   
Other (income)expense, net
877
 
5.5
 
100
 
0.7
   
Earnings before provision for taxes on income
2,332
 
14.6
 
2,708
 
19.8
 
(13.9)
Provision for taxes on income
(42)
 
(0.3)
 
540
 
4.0
 
(107.8)
Net earnings
 $      2,374
 
14.9
 
 $      2,168
 
15.8
 
9.5
                   
                   
Net earnings per share  (Diluted)
 $        0.82
     
 $        0.74
     
10.8
                   
Average shares outstanding  (Diluted)
2,889.2
     
2,930.7
       
                   
Effective tax rate
(1.8)
%
   
19.9
%
     
                   
Adjusted earnings before provision for taxes and net earnings (A)
                 
     Earnings before provision for taxes on income
 $      3,010
 (1)
18.9
 
 $      3,028
 (2)
22.1
 
(0.6)
     Net earnings
 $      2,548
 (1)
16.0
 
 $      2,385
 (2)
17.4
 
6.8
     Net earnings per share  (Diluted)
 $        0.88
 (1)
   
 $        0.81
 (2)
   
8.6
     Effective tax rate
15.3%
     
21.2%
       
                   
(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 the Natrecor intangible asset write-down of $678 million, $441 million, and $0.15 per share, respectively, and the exclusion of an international tax
gain on restructuring of $267 million on net earnings, and $0.09 per share.
                 
                   
(2) 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 IPR&D of $320 million, $217 million and $0.07 per share, respectively.
               

Johnson & Johnson and Subsidiaries
                 
Condensed Consolidated Statement of Earnings
                 
                   
                   
(Unaudited; in Millions Except Per Share Figures)
TWELVE MONTHS
                   
 
2007
 
2006
 
Percent
     
Percent
     
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $    61,095
 
100.0
 
 $    53,324
 
100.0
 
14.6
Cost of products sold
17,751
 
29.1
 
15,057
 
28.2
 
17.9
Selling, marketing and administrative expenses
20,451
 
33.5
 
17,433
 
32.7
 
17.3
Research expense
7,680
 
12.6
 
7,125
 
13.4
 
7.8
In-process research & development (IPR&D)
807
 
1.3
 
559
 
1.0
   
Restructuring expense
745
 
1.2
 
-
 
                 -
   
Interest (income)expense, net
(156)
 
(0.3)
 
(766)
 
(1.4)
   
Other (income)expense, net
534
 
0.9
 
(671)
 
(1.3)
   
Earnings before provision for taxes on income
13,283
 
21.7
 
14,587
 
27.4
 
(8.9)
Provision for taxes on income
2,707
 
4.4
 
3,534
 
6.7
 
(23.4)
Net earnings
 $    10,576
 
17.3
 
 $    11,053
 
20.7
 
(4.3)
                   
                   
Net earnings per share  (Diluted)
 $        3.63
     
 $        3.73
     
(2.7)
                   
Average shares outstanding  (Diluted)
2,910.7
     
2,961.0
       
                   
Effective tax rate
20.4
%
   
24.2
%
     
                   
Adjusted earnings before provision for taxes and net earnings (A)
                 
     Earnings before provision for taxes on income
 $    15,513
 (1)
25.4
 
 $    14,524
 (2)
27.2
 
6.8
     Net earnings
 $    12,085
 (1)
19.8
 
 $    11,133
 (2)
20.9
 
8.6
     Net earnings per share  (Diluted)
 $        4.15
 (1)
   
 $        3.76
 (2)
   
10.4
     Effective tax rate
22.1%
     
23.3%
       
                   
(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 IPR&D of $807 million with no tax benefit and $0.28 per share, respectively, the exclusion of the restructuring expense of $745 million, $528 million
and $0.18 per share, respectively, the exclusion of the Natrecor intangible asset write-down of $678 million, $441 million, and $0.15 per share, respectively, and the
exclusion of an international tax gain on restructuring of $267 million on net earnings, and $0.09 per share.
         
                   
(2) 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 the Guidant acquisition agreement termination fee of $622 million, $368 million and $0.12 per share, respectively, and the exclusion of IRP&D of
$559 million, $448 million and $0.15 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 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.
 



REPORTED SALES vs. PRIOR PERIOD
 
$MM
   
                                 
         
FOURTH QUARTER
 
TWELVE MONTHS
 
                                          % Change    
                                         % Change
         
2007
2006
Reported
Operational (1)
Currency
 
2007
2006
Reported
Operational (1)
Currency
 
                                 
PHARMACEUTICAL SEGMENT (2)
                       
                                 
ACIPHEX/PARIET
                             
US
       
   166
   157
5.7%
5.7%
                     -
 
   645
   595
8.4%
8.4%
                     -
 
Intl
       
   181
   161
12.4%
-0.4%
12.8%
 
   712
   644
10.6%
2.5%
8.1%
 
WW
       
   347
   318
9.1%
2.6%
6.5%
 
1,357
1,239
9.5%
5.3%
4.2%
 
                                 
Anti-Psychotics (3)
                             
US
       
   722
   629
14.8%
14.8%
                     -
 
2,759
2,418
14.1%
14.1%
                     -
 
Intl
       
   498
   432
15.3%
4.5%
10.8%
 
1,938
1,765
9.8%
2.5%
7.3%
 
WW
       
1,220
1,061
15.0%
10.6%
4.4%
 
4,697
4,183
12.3%
9.2%
3.1%
 
                                 
CONCERTA
                               
US
       
    222
     209
6.2%
6.2%
                     -
 
   798
   756
5.6%
5.6%
                     -
 
Intl
       
      67
     48
39.6%
26.6%
13.0%
 
   230
   174
32.2%
22.8%
9.4%
 
WW
       
   289
   257
12.5%
10.1%
2.4%
 
1,028
   930
10.5%
8.7%
1.8%
 
                                 
DURAGESIC/Fentanyl Transdermal
                         
US
       
     72
   108
-33.3%
-33.3%
                     -
 
   391
   478
-18.2%
-18.2%
                     -
 
Intl
       
   192
   184
4.3%
-6.2%
10.5%
 
   773
   817
-5.4%
-11.7%
6.3%
 
WW
       
   264
   292
-9.6%
-16.2%
6.6%
 
1,164
1,295
-10.1%
-14.1%
4.0%
 
                                 
EPREX/PROCRIT
                             
US
       
   331
   491
-32.6%
-32.6%
                     -
 
1,690
2,064
-18.1%
-18.1%
                     -
 
Intl
       
   297
   297
0.0%
-11.5%
11.5%
 
1,195
1,116
7.1%
-1.4%
8.5%
 
WW
       
   628
   788
-20.3%
-24.6%
4.3%
 
2,885
3,180
-9.3%
-12.3%
3.0%
 
                                 
Hormonal Contraceptives
                             
US
       
   146
   184
-20.7%
-20.7%
                     -
 
   662
   781
-15.2%
-15.2%
                     -
 
Intl
       
     69
     60
15.0%
2.0%
13.0%
 
   263
   235
11.9%
3.9%
8.0%
 
WW
       
   215
   244
-11.9%
-15.1%
3.2%
 
   925
1,016
-9.0%
-10.9%
1.9%
 
                                 
LEVAQUIN/FLOXIN
                             
US
       
   409
   423
-3.3%
-3.3%
                     -
 
1,564
1,471
6.3%
6.3%
                     -
 
Intl
       
     23
     16
43.8%
38.8%
5.0%
 
     82
     59
39.0%
37.2%
1.8%
 
WW
       
   432
   439
-1.6%
-1.8%
0.2%
 
1,646
1,530
7.6%
7.5%
0.1%
 
                                 
REMICADE
                               
US
       
   661
   592
11.7%
11.7%
                     -
 
2,534
2,355
7.6%
7.6%
                     -
 
Intl(4)
       
   247
   188
31.4%
31.4%
                     -
 
   793
   658
20.5%
20.5%
                     -
 
WW
       
   908
   780
16.4%
16.4%
                     -
 
3,327
3,013
10.4%
10.4%
                     -
 
                                 
TOPAMAX
                               
US
       
   535
   429
24.7%
24.7%
                     -
 
2,006
1,629
23.1%
23.1%
                     -
 
Intl
       
   117
   100
17.0%
5.8%
11.2%
 
   447
  398
12.3%
4.3%
8.0%
 
WW
       
   652
   529
23.3%
21.2%
2.1%
 
2,453
2,027
21.0%
19.4%
1.6%
 
                                 
Other
                               
US
       
   434
   458
-5.2%
-5.2%
                     -
 
1,764
1,887
-6.5%
-6.5%
                     -
 
Intl
       
1,008
   784
28.6%
18.1%
10.5%
 
3,620
2,967
22.0%
14.8%
7.2%
 
WW
       
1,442
1,242
16.1%
9.5%
6.6%
 
5,384
4,854
10.9%
6.5%
4.4%
 
                                 
Total Pharmaceutical
                             
US(4)
       
3,944
3,868
2.0%
2.0%
                     -
 
15,603
15,092
3.4%
3.4%
                     -
 
Intl
       
2,453
2,082
17.8%
6.8%
11.0%
 
9,263
8,175
13.3%
5.9%
7.4%
 
WW
       
6,397
5,950
7.5%
3.7%
3.8%
 
24,866
23,267
6.9%
4.3%
2.6%
 
                                 
(1) Operational growth excludes the effect of currency
 
(2) Select areas (unaudited)
 
(3) Includes Risperdal, Risperdal Consta & Invega
 
(4)Remicade international figures include sales to partners for markets outside the U.S. For total pharmaceutical sales reporting, these sales are reported as U.S. sales. Sales to partners outside the U.S. are as follows: Q4: 246, YTD: 790 and 2006 Q4: 188, YTD: 658
   
                                 
MEDICAL DEVICES AND DIAGNOSTICS(2)
 
                                 
Cordis
                               
US
       
   394
   464
-15.1%
-15.1%
                     -
 
1,588
2,033
-21.9%
-21.9%
                     -
 
Intl
       
   474
   497
-4.6%
-12.3%
7.7%
 
1,837
2,055
-10.6%
-15.0%
4.4%
 
WW
       
   868
   961
-9.7%
-13.7%
4.0%
 
3,425
4,088
-16.2%
-18.4%
2.2%
 
                                 
DePuy
                               
US
       
   661
   641
3.1%
3.1%
                     -
 
2,638
2,532
4.2%
4.2%
                     -
 
Intl
       
   548
   419
30.8%
19.0%
11.8%
 
1,949
1,573
23.9%
15.2%
8.7%
 
WW
       
1,209
1,060
14.1%
9.4%
4.7%
 
4,587
4,105
11.7%
8.4%
3.3%
 
                                 
Ethicon
                               
US
       
   352
   309
13.9%
13.9%
                     -
 
1,395
1,252
11.4%
11.4%
                     -
 
Intl
       
   591
   518
14.1%
3.5%
10.6%
 
2,196
1,961
12.0%
4.5%
7.5%
 
WW
       
   943
   827
14.0%
7.3%
6.7%
 
3,591
3,213
11.8%
7.2%
4.6%
 
                                 
Ethicon Endo-Surgery
                             
US
       
   481
   421
14.3%
14.3%
                     -
 
1,792
1,632
9.8%
9.8%
                     -
 
Intl
       
   583
   479
21.7%
10.9%
10.8%
 
2,042
1,744
17.1%
9.5%
7.6%
 
WW
       
1,064
   900
18.2%
12.6%
5.6%
 
3,834
3,376
13.6%
9.9%
3.7%
 
                                 
LifeScan
                               
US
       
   337
   289
16.6%
16.6%
                     -
 
1,260
1,146
9.9%
9.9%
                     -
 
Intl
       
   306
   253
20.9%
8.6%
12.3%
 
1,113
  928
19.9%
11.4%
8.5%
 
WW
       
   643
   542
18.6%
12.9%
5.7%
 
2,373
2,074
14.4%
10.6%
3.8%
 
                                 
Ortho-Clinical Diagnostics
                             
US
       
   228
   197
15.7%
15.7%
                     -
 
   881
  765
15.2%
15.2%
                     -
 
Intl
       
   211
   193
9.3%
0.2%
9.1%
 
   761
  723
5.3%
-0.7%
6.0%
 
WW
       
   439
   390
12.6%
8.1%
4.5%
 
1,642
1,488
10.3%
7.4%
2.9%
 
                                 
Total Vision Care
                             
US
       
   190
   157
21.0%
21.0%
                     -
 
  812
  698
16.3%
16.3%
                     -
 
Intl
       
   376
   314
19.7%
12.8%
6.9%
 
1,397
1,181
18.3%
15.2%
3.1%
 
WW
       
   566
   471
20.2%
15.6%
4.6%
 
2,209
1,879
17.6%
15.7%
1.9%
 
                                 
Other
                               
US
       
     18
     13
38.5%
38.5%
                     -
 
      67
    52
28.8%
28.8%
                     -
 
Intl
       
       0
       3
-100.0%
-381.4%
281.4%
 
       8
      8
0.0%
-217.0%
217.0%
 
WW
       
     18
     16
12.5%
11.4%
1.1%
 
     75
   60
25.0%
24.2%
0.8%
 
                                 
Total Medical Devices and Diagnostics
                         
US
       
2,661
2,491
6.8%
6.8%
                     -
 
10,433
10,110
3.2%
3.2%
                     -
 
Intl
       
3,089
2,676
15.4%
5.6%
9.8%
 
11,303
10,173
11.1%
4.6%
6.5%
 
WW
       
5,750
5,167
11.3%
6.2%
5.1%
 
21,736
20,283
7.2%
3.9%
3.3%
 
                                 
                                 
(1) Operational growth excludes the effect of currency
 
(2) Select areas (unaudited)
 
                                 
                                 
CONSUMER SEGMENT (2) (3)
 
                                 
Skin Care
                               
US
       
   323
   281
14.9%
14.9%
                     -
 
1,329
1,144
16.2%
16.2%
                     -
 
Intl
       
   470
   404
16.3%
5.3%
11.0%
 
1,722
1,489
15.6%
8.0%
7.6%
 
WW
       
   793
   685
15.8%
9.3%
6.5%
 
3,051
2,633
15.9%
11.6%
4.3%
 
                                 
Baby & Kids Care
                             
US
       
   116
   102
13.7%
13.7%
                     -
 
   444
   404
9.9%
9.9%
                     -
 
Intl
       
   421
   359
17.3%
6.8%
10.5%
 
1,538
1,336
15.1%
7.6%
7.5%
 
WW
       
   537
   461
16.5%
8.4%
8.1%
 
1,982
1,740
13.9%
8.1%
5.8%
 
                                 
Oral Care
                               
US
       
   189
     69
173.9%
173.9%
                     -
 
   789
   247
219.4%
219.4%
                     -
 
Intl
       
   190
     44
331.8%
321.7%
10.1%
 
   699
   159
339.6%
332.6%
7.0%
 
WW
       
   379
   113
235.4%
231.4%
4.0%
 
1,488
   406
266.5%
263.7%
2.8%
 
                                 
OTC/Nutritionals
                             
US
       
   728
   530
37.4%
37.4%
                     -
 
2,620
1,870
40.1%
40.1%
                     -
 
Intl
       
   687
   227
202.6%
190.5%
12.1%
 
2,522
   872
189.2%
181.1%
8.1%
 
WW
       
1,415
   757
86.9%
83.3%
3.6%
 
5,142
2,742
87.5%
84.9%
2.6%
 
                                 
Women's Health
                             
US
       
   148
   140
5.7%
5.7%
                     -
 
   623
   588
6.0%
6.0%
                     -
 
Intl
       
   313
   280
11.8%
0.2%
11.6%
 
1,183
1,078
9.7%
1.7%
8.0%
 
WW
       
   461
   420
9.8%
2.1%
7.7%
 
1,806
1,666
8.4%
3.2%
5.2%
 
                                 
Other
                               
US
       
   122
     60
103.3%
103.3%
                     -
 
   603
   320
88.4%
88.4%
                     -
 
Intl
       
   103
     69
49.3%
38.6%
10.7%
 
   421
   267
57.7%
50.2%
7.5%
 
WW
       
   225
   129
74.4%
68.7%
5.7%
 
1,024
   587
74.4%
71.0%
3.4%
 
                                 
Total Consumer
                             
US
       
1,626
1,182
37.6%
37.6%
                     -
 
6,408
4,573
40.1%
40.1%
                     -
 
Intl
       
2,184
1,383
57.9%
46.8%
11.1%
 
8,085
5,201
55.5%
47.8%
7.7%
 
WW
       
3,810
2,565
48.5%
42.5%
6.0%
 
14,493
9,774
48.3%
44.2%
4.1%
 
                                 
                                 
(1) Operational growth excludes the effect of currency
 
(2) Select areas (unaudited)
 
(3) 2007 Includes sales from acquisition of PCH