Segments of Business and Geographic Areas

9 Months Ended

Sep. 28, 2014

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SALES BY SEGMENT OF BUSINESS

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
Consumer
United States	$	1,173	1,225	(4.2	)%
International	2,416		2,386	1.3
Total	3,589		3,611	(0.6	)
Pharmaceutical
United States	4,723		3,549	33.1
International	3,584		3,487	2.8
Total	8,307		7,036	18.1
Medical Devices & Diagnostics
United States	2,946		3,151	(6.5	)
International	3,625		3,777	(4.0	)
Total	6,571		6,928	(5.2	)
Worldwide
United States	8,842		7,925	11.6
International	9,625		9,650	(0.3	)
Total	$	18,467	17,575	5.1	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
Consumer
United States	$	3,802	3,899	(2.5	)%
International	7,088		7,045	0.6
Total	10,890		10,944	(0.5	)
Pharmaceutical
United States	13,076		10,397	25.8
International	11,238		10,432	7.7
Total	24,314		20,829	16.7
Medical Devices & Diagnostics
United States	9,300		9,600	(3.1	)
International	11,573		11,584	(0.1	)
Total	20,873		21,184	(1.5	)
Worldwide
United States	26,178		23,896	9.5
International	29,899		29,061	2.9
Total	$	56,077	52,957	5.9	%

SEGMENT PRE-TAX PROFIT

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
Consumer(1)	$	407	467	(12.8	)%
Pharmaceutical (2)	3,247		2,449	32.6
Medical Devices & Diagnostics(3)	3,399		956	255.5
Segments operating profit	7,053		3,872	82.2
Less: Expense not allocated to segments(4)	243		205
Worldwide income before taxes	$	6,810	3,667	85.7	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
Consumer (1)	$	1,588	1,525	4.1	%
Pharmaceutical (2)	9,921		7,858	26.3
Medical Devices & Diagnostics (3)	7,069		3,991	77.1
Segments operating profit	18,578		13,374	38.9
Less: Expense not allocated to segments (4)	718		653
Worldwide income before taxes	$	17,860	12,721	40.4	%

(1) Includes litigation expense of $60 million recorded in the fiscal third quarter of 2014.

Includes a gain of $388 million from the divestiture of the K-Y^® brand and litigation expense of $60 million recorded in the fiscal nine months of 2014. Includes a gain on the sale of intangible and other assets of $55 million recorded in the fiscal nine months of 2013.

(2) Includes an additional year of the Branded Prescription Drug Fee of $220 million recorded in the fiscal third quarter of 2014. Includes in-process research and development charge of $178 million recorded in the fiscal third quarter of 2013.

Includes an additional year of the Branded Prescription Drug Fee of $220 million recorded in the fiscal nine months of 2014. Includes litigation expense of $206 million, an in-process research and development charge of $178 million and a net gain of $400 million on equity investment transactions, primarily the sale of Elan American Depositary Shares, in the fiscal nine months of 2013.

(3) Includes a net gain of $1,948 million from the divestiture of the Ortho-Clinical Diagnostics business, Synthes integration/transaction costs of $167 million, litigation expense of $225 million and $126 million for costs associated with the DePuy ASR^TM Hip program recorded in the fiscal third quarter of 2014. Includes Synthes integration/transaction costs of $122 million, litigation expense of $844 million and $35 million for costs associated with the DePuy ASR^TM Hip program recorded in the fiscal third quarter of 2013.

Includes a net gain of $1,948 million from the divestiture of the Ortho-Clinical Diagnostics business, Synthes integration/transaction costs of $429 million, litigation expense of $501 million and $126 million for costs associated with the DePuy ASR^TM Hip program recorded in the fiscal nine months of 2014. Includes Synthes integration/transaction costs of $502 million, litigation expense of $1,564 million, an in-process research and development charge of $64 million and $117 million for costs associated with the DePuy ASR^TM Hip program recorded in the fiscal nine months of 2013.

(4) Amounts not allocated to segments include interest income/expense and general corporate income/expense.

SALES BY GEOGRAPHIC AREA

	Fiscal Third Quarters Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
United States	$	8,842	7,925	11.6	%
Europe	4,446		4,478	(0.7	)
Western Hemisphere, excluding U.S.	1,820		1,842	(1.2	)
Asia-Pacific, Africa	3,359		3,330	0.9
Total	$	18,467	17,575	5.1	%

	Fiscal Nine Months Ended
(Dollars in Millions)	September 28, 2014		September 29, 2013	Percent Change
United States	$	26,178	23,896	9.5	%
Europe	14,387		13,631	5.5
Western Hemisphere, excluding U.S.	5,378		5,530	(2.7	)
Asia-Pacific, Africa	10,134		9,900	2.4
Total	$	56,077	52,957	5.9	%