Segments of Business and Geographic Areas

6 Months Ended

Jul. 03, 2016

Segment Reporting [Abstract]

Segments of Business and Geographic Areas

SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SALES BY SEGMENT OF BUSINESS

	Fiscal Second Quarters Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
Consumer
United States	$	1,384	1,355	2.1	%
International	2,035		2,128	(4.4	)
Total	3,419		3,483	(1.8	)
Pharmaceutical
United States	5,144		4,543	13.2
International	3,510		3,403	3.1
Total	8,654		7,946	8.9
Medical Devices
United States	3,044		3,013	1.0
International	3,365		3,345	0.6
Total	6,409		6,358	0.8
Worldwide
United States	9,572		8,911	7.4
International	8,910		8,876	0.4
Total	$	18,482	17,787	3.9	%

	Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
Consumer
United States	$	2,742	2,714	1.0	%
International	3,872		4,159	(6.9	)
Total	6,614		6,873	(3.8	)
Pharmaceutical
United States	10,081		8,914	13.1
International	6,751		6,758	(0.1	)
Total	16,832		15,672	7.4
Medical Devices
United States	6,070		5,975	1.6
International	6,448		6,641	(2.9	)
Total	12,518		12,616	(0.8	)
Worldwide
United States	18,893		17,603	7.3
International	17,071		17,558	(2.8	)
Total	$	35,964	35,161	2.3	%

INCOME BEFORE TAX BY SEGMENT

	Fiscal Second Quarters Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
Consumer	$	571	317	80.1	%
Pharmaceutical(1)	3,687		4,122	(10.6	)
Medical Devices(2)	939		1,584	(40.7	)
Segments operating profit	5,197		6,023	(13.7	)
Less: Expense not allocated to segments (3)	293		282
Worldwide income before tax	$	4,904	5,741	(14.6	)%

	Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
Consumer	$	1,137	961	18.3	%
Pharmaceutical(1)	7,031		7,084	(0.7	)
Medical Devices(2)	2,515		3,805	(33.9	)
Segments operating profit	10,683		11,850	(9.8	)
Less: Expense not allocated to segments (3)	485		534
Worldwide income before taxes	$	10,198	11,316	(9.9	)%

(1) Includes litigation expense of $136 million recorded in the fiscal six months of 2015. Includes a gain of $981 million recorded in the fiscal second quarter and first fiscal six months of 2015 from the divestiture of the U.S. license rights to NUCYNTA^® (tapentadol), NUCYNTA^® ER (tapentadol extended-release tablets), and NUCYNTA^® (tapentadol) oral solution. Includes a positive adjustment of $539 million and $403 million to previous reserve estimates in the fiscal six months of 2016 and 2015, respectively. Includes a positive adjustment of $342 million and $199 million to previous reserve estimates in the fiscal second quarter of 2016 and 2015, respectively.

(2) Includes a restructuring charge of $141 million and $278 million in the fiscal second quarter and fiscal six months of 2016, respectively. Includes litigation expense of $570 million and $676 million recorded in the fiscal second quarter and fiscal six months of 2016, respectively. Includes litigation expense of $134 million in the fiscal second quarter of 2015 and a net litigation gain of $404 million primarily related to a litigation settlement agreement with Guidant recorded in the fiscal six months of 2015. The fiscal six months of 2015 included $148 million for costs associated with the DePuy ASR^TM Hip program.

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

SALES BY GEOGRAPHIC AREA

	Fiscal Second Quarters Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
United States	$	9,572	8,911	7.4	%
Europe	4,090		4,151	(1.5	)
Western Hemisphere, excluding U.S.	1,542		1,501	2.7
Asia-Pacific, Africa	3,278		3,224	1.7
Total	$	18,482	17,787	3.9	%

	Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2016		June 28, 2015	Percent Change
United States	$	18,893	17,603	7.3	%
Europe	7,937		8,191	(3.1	)
Western Hemisphere, excluding U.S.	2,873		3,140	(8.5	)
Asia-Pacific, Africa	6,261		6,227	0.5
Total	$	35,964	35,161	2.3	%