Business Combinations and Divestitures

6 Months Ended

Jun. 29, 2014

Business Combinations [Abstract]

BUSINESS COMBINATIONS AND DIVESTITURES

BUSINESS COMBINATIONS AND DIVESTITURES

Subsequent to the quarter, on June 30, 2014, the Company completed the divestiture of its Ortho-Clinical Diagnostics business to The Carlyle Group, for approximately $4.0 billion. The Company expects to record an after-tax gain of approximately $1.0 billion in the fiscal third quarter of 2014.

Ortho-Clinical Diagnostics' results are included in the Company's Medical Devices and Diagnostics segment pre-tax profit.

As of June 29, 2014, the total assets classified as held for sale related to Ortho-Clinical Diagnostics were:

(Dollars in Millions)
Accounts Receivable, trade	$	76
Inventory	361
Prepaid expenses and other current assets	72
Current assets held for sale(1)	509
Property, plant and equipment, net	647
Goodwill	599
Other non-current assets	69
Non-Current assets held for sale(2)	$	1,315

⁽¹⁾ Component of prepaid expenses and other on the Consolidated Balance Sheet

⁽²⁾ Component of other assets on the Consolidated Balance Sheet

The Consolidated Balance Sheet also includes $104 million of current liabilities classified as held for sale as a component of accounts payable and accrued liabilities, and $38 million of non-current liabilities classified as held for sale as a component of other liabilities.

During the fiscal second quarter of 2014, McNEIL-PPC, Inc., a subsidiary of Johnson & Johnson, completed the divestiture of the K-Y^® brand to Reckitt Benckiser Group PLC in the U.S. and certain other markets.  The gain on the divestiture in the countries that have closed was$332 million and was recognized in Other (income) expense, net.

During the fiscal first quarter of 2013, the Company completed the acquisitions of Flexible Stenting Solutions, Inc., a leading developer of innovative flexible peripheral arterial, venous and biliary stents and Shanghai Elsker Mother & Baby Co., Ltd, a baby care company in China.