EX-99.2O OTH FIN ST 4 exhibit99202011.htm exhibit99202011.htm Exhibit 99.2O
 
 
Johnson & Johnson and Subsidiaries
                 
Condensed Consolidated Statement of Earnings
                 
                   
(Unaudited; in Millions Except Per Share Figures)
FIRST QUARTER
 
2011 ACT
 
2010 ACT
 
Percent
     
Percent
     
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $     16,173
 
100.0
 
 $     15,631
 
100.0
 
3.5
Cost of products sold
         4,778
 
29.5
 
         4,528
 
29.0
 
5.5
Selling, marketing and administrative expenses
5,056
 
31.3
 
4,779
 
30.5
 
5.8
Research and development expense
1,738
 
10.8
 
1,557
 
10.0
 
11.6
Interest (income)expense, net
104
 
0.6
 
81
 
0.5
 
28.4
Other (income)expense, net
(13)
 
(0.1)
 
(1,594)
 
(10.2)
   
Earnings before provision for taxes on income
4,510
 
27.9
 
6,280
 
40.2
 
(28.2)
Provision for taxes on income
1,034
 
6.4
 
1,754
 
11.2
 
(41.0)
Net earnings
 $       3,476
 
21.5
 
 $       4,526
 
29.0
 
(23.2)
                   
                   
Net earnings per share  (Diluted)
 $        1.25
     
 $        1.62
     
          (22.8)
                   
Average shares outstanding  (Diluted)
2,772.7
     
2,797.3
       
                   
Effective tax rate
22.9
%
   
27.9
%
     
                   
Adjusted earnings before provision for taxes and net earnings(A)
           
     Earnings before provision for taxes on income
 $       4,856
 (1)
30.0
 
 $       4,783
 (2)
30.6
 
1.5
     Net earnings
 $       3,747
 (1)
23.2
 
 $       3,616
 (2)
23.1
 
3.6
     Net earnings per share  (Diluted)
$         1.35
 (1)
   
 $         1.29
 (2)
   
4.7
     Effective tax rate
22.8
%
   
24.4
%
     
                   
(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 expense due to litigation ($291 million) and additional DePuy ASR™ Hip recall costs ($55 million) of $346 million, $271 million and $0.10 per share, respectively.
                   
(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 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
 
2011
 
2010
 
Total
 
Operations
 
Currency
Sales to customers by
                 
segment of business
                 
                   
Consumer
                 
    U.S.
 $         1,345
 
            1,560
 
              (13.8)
%
                    (13.8)
 
                -
    International
            2,337
 
            2,206
 
                  5.9
 
                        2.6
 
                  3.3
 
            3,682
   
            3,766
 
                (2.2)
 
                      (4.1)
 
                  1.9
                   
Pharmaceutical
                 
    U.S.
            3,391
 
            3,206
 
                  5.8
 
                        5.8
 
                -
    International
            2,668
 
            2,432
 
                  9.7
 
                        7.3
 
                  2.4
 
            6,059
   
            5,638
 
                  7.5
 
                        6.4
 
                  1.1
                   
Med Devices & Diagnostics
                 
    U.S.
            2,872
   
            2,886
 
                (0.5)
 
                      (0.5)
 
                -
    International
            3,560
 
            3,341
 
                  6.6
 
                        3.0
 
                  3.6
 
            6,432
   
            6,227
 
                  3.3
 
                        1.3
 
                  2.0
                   
U.S.
            7,608
 
            7,652
 
                (0.6)
 
                      (0.6)
 
                -
International
            8,565
 
            7,979
 
                  7.3
 
                        4.1
 
                  3.2
Worldwide
 $       16,173
 
          15,631
 
                  3.5
%
                        1.8
 
                  1.7
 
 

 
 
 
 

Johnson & Johnson and Subsidiaries
                   
Supplementary Sales Data
                   
                     
(Unaudited; Dollars in Millions)
 
FIRST QUARTER
           
Percent Change
   
2011
 
2010
 
Total
 
Operations
 
Currency
Sales to customers by
                   
geographic area
                   
                     
U.S.
 
 $         7,608
 
            7,652
 
                (0.6)
%
                (0.6)
 
                -
                     
Europe
 
            4,183
 
            4,102
 
                  2.0
 
                  1.9
 
                  0.1
Western Hemisphere excluding U.S.
 
            1,436
 
            1,280
 
               12.2
 
                  7.3
 
                  4.9
Asia-Pacific, Africa
 
            2,946
 
            2,597
 
               13.4
 
                  6.3
 
                  7.1
International
 
            8,565
 
            7,979
 
                  7.3
 
                  4.1
 
                  3.2
   
  
 
  
 
  
 
  
 
  
Worldwide
 
 $       16,173
 
          15,631
 
                  3.5
%
                  1.8
 
                  1.7

 
 
 
 

JOHNSON & JOHNSON AND SUBSIDIARIES
SEGMENT SALES
$MM
 
         
FIRST QUARTER
 
               
% Change
 
         
2011
 
2010
Reported
Operational (1)
Currency
 
                       
CONSUMER SEGMENT (2)
               
                       
BABY CARE
                   
US
       
       105
 
      103
1.9%
1.9%
            -    
 
Intl
       
       456
 
      426
7.0%
3.3%
3.7%
 
WW
       
       561
 
      529
6.0%
3.1%
2.9%
 
         
 
 
 
       
ORAL CARE
                   
US
       
       163
 
      174
(6.3%)
(6.3%)
            -    
 
Intl
       
       228
 
      207
10.1%
5.6%
4.5%
 
WW
       
       391
 
      381
2.6%
0.2%
2.4%
 
         
 
 
 
       
OTC/NUTRITIONALS
                 
US
       
       397
 
      542
(26.8%)
(26.8%)
            -    
 
Intl
       
       732
 
      665
10.1%
6.9%
3.2%
 
WW
       
    1,129
 
   1,207
(6.5%)
(8.2%)
1.7%
 
         
 
 
 
       
SKIN CARE
                   
US
       
       426
 
      452
(5.8%)
(5.8%)
            -    
 
Intl
       
       473
 
      468
1.1%
(1.7%)
2.8%
 
WW
       
       899
 
      920
(2.3%)
(3.7%)
1.4%
 
         
 
 
 
       
WOMEN'S HEALTH
                 
US
       
       125
 
      146
(14.4%)
(14.4%)
            -    
 
Intl
       
       334
 
      323
3.4%
0.7%
2.7%
 
WW
       
       459
 
      469
(2.1%)
(4.0%)
1.9%
 
         
 
 
 
       
WOUND CARE/OTHER
                 
US
       
       129
 
      143
(9.8%)
(9.8%)
            -    
 
Intl
       
       114
 
      117
(2.6%)
(6.9%)
4.3%
 
WW
       
       243
 
      260
(6.5%)
(8.4%)
1.9%
 
         
 
 
 
       
TOTAL CONSUMER
                 
US
       
    1,345
 
   1,560
(13.8%)
(13.8%)
            -    
 
Intl
       
    2,337
 
   2,206
5.9%
2.6%
3.3%
 
WW
       
    3,682
 
   3,766
(2.2%)
(4.1%)
1.9%
 
                       
See footnotes at end of schedule
               
 
 
 
 
 
 
JOHNSON & JOHNSON AND SUBSIDIARIES
SEGMENT SALES
$MM
 
         
FIRST QUARTER
 
               
% Change
 
         
2011
 
2010
Reported
Operational (1)
Currency
 
           
PHARMACEUTICAL SEGMENT  (2) (5)
             
                     
ACIPHEX/PARIET
                 
US
       
       109
 
      119
(8.4%)
(8.4%)
 -   
Intl
       
       130
 
      141
(7.8%)
(8.8%)
1.0%
WW
       
       239
 
      260
(8.1%)
(8.6%)
0.5%
         
 
 
 
     
CONCERTA
                 
US
       
       254
 
      231
10.0%
10.0%
 -    
Intl
       
       108
 
        98
10.2%
6.3%
3.9%
WW
       
       362
 
      329
10.0%
8.8%
1.2%
         
 
 
 
     
DOXIL/CAELYX
                 
US
       
         64
 
        72
(11.1%)
(11.1%)
 -    
Intl
       
         75
 
          8
*     
*     
20.2%
WW
       
       139
 
        80
73.8%
71.6%
2.2%
                     
DURAGESIC/FENTANYL TRANSDERMAL
             
US
       
           4
 
        38
(89.5%)
(89.5%)
 -    
Intl
       
       123
 
      146
(15.8%)
(18.9%)
3.1%
WW
       
       127
 
      184
(31.0%)
(33.4%)
2.4%
         
 
 
 
     
LEVAQUIN/FLOXIN
               
US
       
       422
 
      363
16.3%
16.3%
 -    
Intl
       
         12
 
          8
50.0%
44.5%
5.5%
WW
       
       434
 
      371
17.0%
16.9%
0.1%
         
 
 
 
     
PREZISTA
                 
US
       
126
 
89
41.6%
41.6%
 -    
Intl
       
140
 
98
42.9%
42.3%
0.6%
WW
       
266
 
187
42.2%
41.9%
0.3%
                     
PROCRIT/EPREX
                 
US
       
       190
 
      290
(34.5%)
(34.5%)
 -    
Intl
       
       207
 
      233
(11.2%)
(12.3%)
1.1%
WW
       
       397
 
      523
(24.1%)
(24.6%)
0.5%
         
 
 
 
     
REMICADE
                 
US
       
       788
 
      780
1.0%
1.0%
 -    
US Exports (3)
     
       490
 
      400
22.5%
22.5%
 -    
Intl
       
           7
 
          6
16.7%
16.7%
0.0%
WW
       
    1,285
 
   1,186
8.3%
8.3%
0.0%
 
See footnotes at end of schedule

 
 
 
 
JOHNSON & JOHNSON AND SUBSIDIARIES
SEGMENT SALES
$MM
 
         
FIRST QUARTER
 
               
% Change
 
         
2011
 
2010
Reported
Operational (1)
Currency
 

PHARMACEUTICAL SEGMENT  (2) (5) (Continued)

RISPERDAL/RISPERIDONE
             
US
       
           8
 
          5
60.0%
60.0%
 -    
Intl
       
       119
 
      133
(10.5%)
(14.6%)
4.1%
WW
       
       127
 
      138
(8.0%)
(12.0%)
4.0%
         
 
 
 
     
RISPERDAL CONSTA
               
US
       
       114
 
      117
(2.6%)
(2.6%)
 -    
Intl
       
       290
 
      262
10.7%
9.1%
1.6%
WW
       
       404
 
      379
6.6%
5.5%
1.1%
         
 
 
 
     
TOPAMAX
                 
US
       
         50
 
        57
(12.3%)
(12.3%)
 -    
Intl
       
         79
 
        91
(13.2%)
(14.4%)
1.2%
WW
       
       129
 
      148
(12.8%)
(13.5%)
0.7%
         
 
 
 
     
VELCADE
                 
US
       
          -
 
         -
             -    
                          -    
-    
Intl
       
       280
 
      261
7.3%
5.6%
1.7%
WW
       
       280
 
      261
7.3%
5.6%
1.7%
         
 
 
 
     
OTHER
                   
US
       
       772
 
      645
19.7%
19.7%
 -    
Intl
       
    1,098
 
      947
15.9%
12.7%
3.2%
WW
       
    1,870
 
   1,592
17.5%
15.6%
1.9%
         
 
 
 
     
TOTAL PHARMACEUTICAL
             
US
       
    3,391
 
   3,206
5.8%
5.8%
 -    
Intl
       
    2,668
 
   2,432
9.7%
7.3%
2.4%
WW
       
    6,059
 
   5,638
7.5%
6.4%
1.1%
                     
MAJOR NEW PHARMACEUTICAL PRODUCTS (4)
           
                     
INTELENCE
                 
US
       
         38
 
        31
22.6%
22.6%
 -    
Intl
       
         31
 
        24
29.2%
28.3%
0.9%
WW
       
         69
 
        55
25.5%
25.1%
0.4%
                     
INVEGA
                   
US
       
         69
 
        69
0.0%
0.0%
 -    
Intl
       
         51
 
        39
30.8%
27.9%
2.9%
WW
       
       120
 
      108
11.1%
10.1%
1.0%
                     
SIMPONI
                   
US
       
         53
 
        39
35.9%
35.9%
 -    
Intl
       
         42
 
          3
*    
*    
 -    
WW
       
         95
 
        42
*    
*    
 -    
                     
STELARA
                 
US
       
       105
 
        56
87.5%
87.5%
 -    
Intl
       
         61
 
        31
96.8%
94.9%
1.9%
WW
       
       166
 
        87
90.8%
90.1%
0.7%
                     
See footnotes at end of schedule
             

 
 
 
 
JOHNSON & JOHNSON AND SUBSIDIARIES
SEGMENT SALES
$MM
 
         
FIRST QUARTER
 
               
% Change
 
         
2011
 
2010
Reported
Operational (1)
Currency
 

MEDICAL DEVICES AND DIAGNOSTICS   (2)
             
                     
CORDIS
                   
US
       
       242
 
      251
(3.6%)
(3.6%)
 -    
Intl
       
       393
 
      421
(6.7%)
(9.9%)
3.2%
WW
       
       635
 
      672
(5.5%)
(7.5%)
2.0%
         
 
 
 
     
DEPUY
                   
US
       
       811
 
      814
(0.4%)
(0.4%)
 -    
Intl
       
       692
 
      640
8.1%
4.2%
3.9%
WW
       
    1,503
 
   1,454
3.4%
1.7%
1.7%
                     
DIABETES CARE
                 
US
       
       311
 
      290
7.2%
7.2%
 -    
Intl
       
       326
 
      307
6.2%
4.9%
1.3%
WW
       
       637
 
      597
6.7%
6.0%
0.7%
         
 
 
 
     
ETHICON
                 
US
       
       516
 
      510
1.2%
1.2%
 -    
Intl
       
       677
 
      637
6.3%
3.3%
3.0%
WW
       
    1,193
 
   1,147
4.0%
2.3%
1.7%
         
 
 
 
     
ETHICON ENDO-SURGERY
             
US
       
       471
 
      483
(2.5%)
(2.5%)
 -    
Intl
       
       750
 
      685
9.5%
6.0%
3.5%
WW
       
    1,221
 
   1,168
4.5%
2.4%
2.1%
         
 
 
 
     
ORTHO-CLINICAL DIAGNOSTICS
             
US
       
       265
 
      288
(8.0%)
(8.0%)
 -    
Intl
       
       256
 
      237
8.0%
4.1%
3.9%
WW
       
       521
 
      525
(0.8%)
(2.5%)
1.7%
         
 
 
 
     
VISION CARE
                 
US
       
       256
 
      249
2.8%
2.8%
 -    
Intl
       
       466
 
      415
12.3%
5.9%
6.4%
WW
       
       722
 
      664
8.7%
4.7%
4.0%
         
 
 
 
     
TOTAL MEDICAL DEVICES AND DIAGNOSTICS
           
US
       
    2,872
 
   2,886
(0.5%)
(0.5%)
 -    
Intl
       
    3,560
 
   3,341
6.6%
3.0%
3.6%
WW
       
    6,432
 
   6,227
3.3%
1.3%
2.0%
                     
                     
* Percentage greater than 100%
             
(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 amounts have been reclassified to conform to current presentation