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Segments of Business and Geographic Areas (Tables)

9 Months Ended

Sep. 27, 2020

SALES BY SEGMENT OF BUSINESS


	Fiscal Third Quarter Ended								Fiscal Nine Months Ended
(Dollars in Millions)	September 27, 2020		September 29, 2019	Percent Change		September 27, 2020		September 29, 2019	Percent Change

Consumer Health*
OTC
U.S.	$	601	477	26.0	%	$	1,917	1,468	30.6	%
International	541		621	(12.9)		1,722		1,781	(3.3)
Worldwide	1,142		1,098	4.0		3,639		3,249	12.0
Skin Health/Beauty
U.S.	572		559	2.4		1,767		1,810	(2.4)
International	577		592	(2.7)		1,506		1,633	(7.8)
Worldwide	1,149		1,151	(0.2)		3,273		3,443	(5.0)
Oral Care
U.S.	164		156	5.5		510		462	10.4
International	248		223	10.7		694		673	3.0
Worldwide	412		379	8.5		1,204		1,135	6.0
Baby Care
U.S.	91		91	(1.0)		279		277	0.5
International	302		326	(7.2)		831		977	(14.9)
Worldwide	393		417	(5.9)		1,110		1,254	(11.5)
Women's Health
U.S.	3		3	(6.9)		10		9	7.3
International	227		252	(9.6)		654		724	(9.6)
Worldwide	230		255	(9.6)		664		733	(9.4)
Wound Care/Other
U.S.	125		109	15.2		370		343	8.0
International	64		59	7.4		175		173	1.3
Worldwide	189		168	12.5		545		516	5.8
TOTAL Consumer Health
U.S.	1,556		1,394	11.6		4,853		4,369	11.1
International	1,958		2,075	(5.6)		5,582		5,962	(6.4)
Worldwide	3,514		3,469	1.3		10,435		10,331	1.0
* Previously referred to as Consumer


PHARMACEUTICAL
Immunology
U.S.	2,558	2,582	(0.9)	7,330	7,124	2.9
International	1,230	1,129	9.0	3,619	3,304	9.5
Worldwide	3,789	3,711	2.1	10,950	10,428	5.0
REMICADE^®
U.S.	634	749	(15.4)	1,852	2,324	(20.3)
U.S. Exports	78	88	(11.3)	321	226	42.1
International	209	299	(30.1)	673	795	(15.3)
Worldwide	921	1,136	(18.9)	2,846	3,345	(14.9)
SIMPONI / SIMPONI ARIA^®
U.S.	312	313	(0.4)	840	857	(2.0)
International	280	273	2.4	827	816	1.3
Worldwide	592	586	0.9	1,667	1,673	(0.4)
STELARA^®
U.S.	1,313	1,212	8.4	3,668	3,152	16.4
International	634	487	30.3	1,795	1,509	19.0
Worldwide	1,947	1,698	14.7	5,463	4,661	17.2
TREMFYA^®
U.S.	222	221	0.4	650	565	15.0%
International	105	69	54.4	316	177	78.7
Worldwide	327	290	13.1	965	742	30.2%
OTHER IMMUNOLOGY
U.S.	—	—	—	—	—	—
International	3	2	35.6	9	8	12.4
Worldwide	3	2	35.6	9	8	12.4

Infectious Diseases
U.S.	413	418	(1.1)	1,265	1,162	8.9
International	451	421	7.0	1,397	1,385	0.9
Worldwide	864	839	3.0	2,662	2,547	4.5
EDURANT^® / rilpivirine
U.S.	11	12	(12.0)	33	36	(8.6)
International	226	206	9.3	684	603	13.3
Worldwide	236	218	8.1	716	639	12.1
PREZISTA^® / PREZCOBIX^® / REZOLSTA^® / SYMTUZA^®
U.S.	379	373	1.5	1,154	1,032	11.8
International	147	135	9.1	461	534	(13.7)
Worldwide	526	508	3.5	1,615	1,566	3.1
OTHER INFECTIOUS DISEASES
U.S.	24	33	(26.6)	79	94	(16.6)
International	78	80	(2.3)	252	248	1.8
Worldwide	102	113	(9.4)	331	342	(3.2)


Neuroscience
U.S.	759	785	(3.5)	2,285	2,172	5.2
International	846	810	4.5	2,565	2,590	(1.0)
Worldwide	1,605	1,595	0.6	4,850	4,762	1.8
CONCERTA^® / methylphenidate
U.S.	43	84	(49.2)	150	196	(23.6)
International	107	109	(2.0)	319	348	(8.2)
Worldwide	149	193	(22.6)	469	544	(13.8)
INVEGA SUSTENNA^® / XEPLION^® / INVEGA TRINZA^® / TREVICTA^®
U.S.	585	554	5.6	1,704	1,543	10.5
International	341	297	14.9	983	916	7.3
Worldwide	926	851	8.8	2,688	2,459	9.3
RISPERDAL CONSTA^®
U.S.	70	79	(11.0)	220	237	(6.9)
International	81	89	(7.8)	254	292	(12.7)
Worldwide	152	167	(9.3)	475	528	(10.1)
OTHER NEUROSCIENCE
U.S.	60	68	(11.3)	210	196	7.1
International	317	316	0.3	1,008	1,035	(2.6)
Worldwide	377	384	(1.8)	1,218	1,231	(1.1)

Oncology
U.S.	1,267	1,171	8.2	3,623	3,146	15.2
International	1,862	1,590	17.1	5,310	4,830	9.9
Worldwide	3,129	2,761	13.3	8,933	7,976	12.0
DARZALEX^®
U.S.	585	402	46.0	1,540	1,123	37.2
International	514	363	41.5	1,397	1,045	33.7
Worldwide	1,099	765	43.8	2,937	2,168	35.5
ERLEADA^®
U.S.	152	74	*	407	194	*
International	55	12	*	112	22	*
Worldwide	206	86	*	519	216	*
IMBRUVICA^®
U.S.	450	447	0.7	1,329	1,163	14.2
International	581	475	22.5	1,682	1,373	22.5
Worldwide	1,031	921	11.9	3,011	2,536	18.7
VELCADE^®
U.S.	—	—	—	—	—	—
International	105	149	(30.1)	311	636	(51.2)
Worldwide	105	149	(30.1)	311	636	(51.2)
ZYTIGA^® / abiraterone acetate
U.S.	58	233	(75.2)	284	616	(53.9)
International	532	508	4.8	1,564	1,502	4.1
Worldwide	590	741	(20.4)	1,848	2,118	(12.7)


OTHER ONCOLOGY
U.S.	21	17	35.3	63	51	25.8
International	76	83	(8.8)	244	252	(3.1)
Worldwide	98	100	(1.7)	308	303	1.7

Pulmonary Hypertension
U.S.	510	427	19.4	1,541	1,296	18.9
International	239	227	5.2	742	704	5.3
Worldwide	749	654	14.5	2,283	2,000	14.1
OPSUMIT^®
U.S.	244	206	18.1	729	581	25.3
International	148	140	5.5	458	419	9.3
Worldwide	392	347	13.0	1,187	1,001	18.6
UPTRAVI^®
U.S.	226	185	22.4	692	536	29.1
International	34	25	32.3	100	75	33.1
Worldwide	260	210	23.6	792	611	29.6
OTHER PULMONARY HYPERTENSION
U.S.	40	36	11.5	121	179	(32.3)
International	57	61	(6.7)	183	210	(12.7)
Worldwide	97	96	0.1	304	388	(21.7)

Cardiovascular / Metabolism / Other
U.S.	931	955	(2.6)	2,574	2,804	(8.2)
International	351	360	(2.7)	1,052	1,131	(7.1)
Worldwide	1,281	1,316	(2.6)	3,625	3,936	(7.9)
XARELTO^®
U.S.	630	613	2.9	1,716	1,704	0.7
International	—	—	—	—	—	—
Worldwide	630	613	2.9	1,716	1,704	0.7
INVOKANA^® / INVOKAMET^®
U.S.	156	125	24.7	405	411	(1.6)
International	68	55	24.7	173	147	18.0
Worldwide	224	179	24.7	578	558	3.6
PROCRIT^® / EPREX^®
U.S.	69	126	(45.4)	215	387	(44.5)
International	63	72	(12.2)	208	220	(5.5)
Worldwide	132	198	(33.3)	423	607	(30.4)
OTHER
U.S.	75	91	(17.9)	238	302	(21.4)
International	219	234	(6.2)	670	765	(12.3)
Worldwide	294	325	(9.5)	908	1,067	(14.9)

TOTAL PHARMACEUTICAL
U.S.	6,438	6,340	1.5	18,619	17,705	5.2
International	4,980	4,537	9.7	14,685	13,945	5.3
Worldwide	11,418	10,877	5.0	33,304	31,650	5.2


MEDICAL DEVICES








Interventional Solutions
U.S.	399	357	11.8	1,019	1,066	(4.4)
International	437	382	14.0	1,134	1,156	(2.0)
Worldwide	836	741	12.9	2,153	2,223	(3.1)
Orthopaedics
U.S.	1,308	1,301	0.6	3,427	3,950	(13.2)
International	774	837	(7.5)	2,145	2,616	(18.0)
Worldwide	2,083	2,138	(2.6)	5,572	6,566	(15.1)
HIPS
U.S.	221	204	8.7	564	633	(10.9)
International	124	133	(7.2)	344	428	(19.8)
Worldwide	345	336	2.4	908	1,061	(14.5)
KNEES
U.S.	205	209	(1.9)	527	650	(19.0)
International	102	136	(24.8)	298	435	(31.5)
Worldwide	308	344	(10.9)	825	1,085	(24.0)
TRAUMA
U.S.	433	415	4.2	1,194	1,239	(3.6)
International	253	262	(3.4)	698	795	(12.2)
Worldwide	685	677	1.3	1,892	2,034	(7.0)
SPINE, SPORTS & OTHER
U.S.	449	472	(4.9)	1,142	1,427	(20.0)
International	295	306	(3.4)	805	957	(15.8)
Worldwide	745	778	(4.3)	1,947	2,384	(18.3)
Surgery
U.S.	913	940	(3.0)	2,247	2,867	(21.7)
International	1,239	1,371	(9.6)	3,556	4,192	(15.2)
Worldwide	2,152	2,311	(6.9)	5,803	7,059	(17.8)
ADVANCED
U.S.	421	409	3.0	1,079	1,209	(10.7)
International	579	602	(3.9)	1,644	1,811	(9.2)
Worldwide	1,000	1,010	(1.1)	2,723	3,019	(9.8)
GENERAL
U.S.	492	531	(7.6)	1,168	1,658	(29.6)
International	660	769	(14.1)	1,912	2,381	(19.7)
Worldwide	1,152	1,301	(11.4)	3,080	4,040	(23.8)
Vision
U.S.	473	459	3.1	1,160	1,366	(15.1)
International	608	734	(17.2)	1,683	2,117	(20.5)
Worldwide	1,081	1,193	(9.4)	2,843	3,483	(18.4)
CONTACT LENSES / OTHER
U.S.	375	339	10.9	924	993	(6.9)
International	455	555	(18.1)	1,274	1,566	(18.7)
Worldwide	830	893	(7.1)	2,198	2,559	(14.1)


SURGICAL
U.S.	98		120	(18.9)		236		373	(36.8)
International	153		180	(14.6)		409		551	(25.7)
Worldwide	251		299	(16.3)		645		923	(30.2)

TOTAL MEDICAL DEVICES
U.S.	3,092		3,057	1.2		7,852		9,249	(15.1)
International	3,058		3,326	(8.1)		8,518		10,082	(15.5)
Worldwide	6,150		6,383	(3.6)		16,370		19,331	(15.3)

WORLDWIDE
U.S.	11,086		10,791	2.7		31,324		31,323	0.0
International	9,996		9,938	0.6		28,785		29,989	(4.0)
Worldwide	$	21,082	20,729	1.7	%	$	60,109	61,312	(2.0)	%

*Percentage greater than 100% or not meaningful

Operating Profit by Segment of Business

EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT


	Fiscal Third Quarter Ended								Fiscal Nine Months Ended
(Dollars in Millions)	September 27, 2020		September 29, 2019	Percent Change		September 27, 2020		September 29, 2019	Percent Change
Consumer Health ⁽¹⁾	$	191	653	(70.8)	%	$	993	1,800	(44.8)	%
Pharmaceutical⁽²⁾	3,439		(222)	*		11,787		5,786	*
Medical Devices⁽³⁾	1,010		1,392	(27.4)		2,681		6,078	(55.9)
Segment earnings before provision for taxes	4,640		1,823	*		15,461		13,664	13.2
Less: Expense not allocated to segments⁽⁴⁾	239		176			611		554
Worldwide income before tax	$	4,401	1,647	*		$	14,850	13,110	13.3	%

*Percentage greater than 100% or not meaningful

⁽¹⁾ Consumer Health

•Includes a gain of $0.3 billion related to the Company's previously held equity investment in Ci:z Holdings Co., Ltd. (DR. CI: LABO) in the fiscal nine months of 2019.

•Includes litigation expense of $0.5 billion in the fiscal third quarter of 2020, primarily talc related costs, including certain settlements. Includes litigation expense of $1.2 billion and $0.2 billion in both the fiscal nine months of 2020 and 2019, primarily talc related costs, including certain settlements.

•Includes amortization expense of $0.1 billion in both the fiscal third quarters of 2020 and 2019, respectively and $0.3 billion in both the fiscal nine months of 2020 and 2019, respectively.

•Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2020 and 2019, respectively.

⁽²⁾ Pharmaceutical

•Includes an in-process research and development expense of $0.9 billion related to the Alios asset in the fiscal nine months of 2019.

•Includes litigation expense of $1.0 billion and $4.0 billion in the fiscal third quarters of 2020 and 2019 and $1.0 billion and $4.3 billion in the fiscal nine months of 2020 and 2019, respectively. Litigation expense in all periods is primarily related to the agreement in principle to settle opioid litigation.

•Includes an unrealized loss on securities of $0.1 billion in the fiscal third quarter of 2019. Includes an unrealized gain on securities of $0.2 billion in both the fiscal nine months of 2020 and 2019, respectively.

•Includes a research and development expense of $0.3 billion in the fiscal nine months of 2019, for an upfront payment related to argenx.

•Includes amortization expense of $0.8 billion in both the fiscal third quarters of 2020 and 2019. Includes amortization expense of $2.4 billion in both the fiscal nine months of 2020 and 2019.

•Includes a restructuring related charge of $0.1 billion in both the fiscal nine months of 2020 and 2019, respectively.

•Includes Actelion acquisition related costs of $0.1 billion in the fiscal nine months of 2019.

•In the fiscal second and third quarters of 2020, the Company entered into a series of contract manufacturing arrangements for vaccine production with third party contract manufacturing organizations. These arrangements provide the Company with future supplemental commercial capacity for vaccine production and potentially transferable rights to such production if capacity is not required. Amounts paid and contractually obligated to be paid to these contract manufacturing organizations of approximately $0.8 billion are reflected in the prepaid expenses and other, other assets, accrued liabilities and other liabilities accounts in the Company's consolidated balance sheet upon execution of each agreement. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations.

⁽³⁾Medical Devices

•Includes a contingent consideration reversal of $0.2 billion in the fiscal third quarter of 2020 and $1.1 billion in the fiscal nine months of 2020 related to the timing of certain developmental milestones associated with the Auris Health acquisition.

•Includes a gain of $2.0 billion from the divestiture of the ASP business in the fiscal nine months of 2019.

•Includes litigation expense of $0.3 billion in the fiscal nine months of 2019.

•Includes a restructuring related charge of $0.1 billion and amortization expense of $0.2 billion in both the fiscal third quarters of 2020 and 2019.

•Includes a restructuring related charge of $0.2 billion and amortization expense of $0.7 billion in both the fiscal nine months of 2020 and 2019.

•Includes an in-process research and development expense of $0.1 billion in the fiscal third quarter of 2020 and fiscal nine months of 2020.

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

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

SALES BY GEOGRAPHIC AREA


	Fiscal Third Quarter Ended								Fiscal Nine Months Ended
(Dollars in Millions)	September 27, 2020		September 29, 2019	Percent Change		September 27, 2020		September 29, 2019	Percent Change
United States	$	11,086	10,791	2.7	%	$	31,324	31,323	0.0	%
Europe	4,819		4,461	8.0		13,709		13,803	(0.7)
Western Hemisphere, excluding U.S.	1,296		1,488	(12.9)		3,931		4,446	(11.6)
Asia-Pacific, Africa	3,881		3,989	(2.7)		11,145		11,740	(5.1)
Total	$	21,082	20,729	1.7	%	$	60,109	61,312	(2.0)	%