Segments of Business and Geographic Areas (Tables)

6 Months Ended

Jul. 03, 2022

Segment Reporting [Abstract]

Sales By Segment Of Business

SALES BY SEGMENT OF BUSINESS

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2022		July 4, 2021	Percent Change		July 3, 2022		July 4, 2021	Percent Change
CONSUMER HEALTH (1)
OTC
U.S.	$	663	675	(1.8)	%	$	1,333	1,274	4.6	%
International	818		752	8.8		1,609		1,425	12.9
Worldwide	1,482		1,426	3.8		2,943		2,699	9.0
Skin Health/Beauty
U.S.	629		659	(4.5)		1,173		1,293	(9.2)
International	497		511	(2.8)		965		1,040	(7.2)
Worldwide	1,126		1,170	(3.7)		2,138		2,333	(8.3)
Oral Care
U.S.	170		165	3.4		313		328	(4.6)
International	224		260	(14.1)		447		514	(13.0)
Worldwide	394		426	(7.3)		760		843	(9.7)
Baby Care
U.S.	88		97	(9.1)		173		193	(10.3)
International	287		290	(1.0)		557		583	(4.4)
Worldwide	375		387	(3.1)		730		776	(5.9)
Women's Health
U.S.	3		3	8.9		7		6	8.1
International	228		227	0.1		452		446	1.3
Worldwide	230		230	0.2		458		452	1.4
Wound Care/Other
U.S.	133		153	(12.7)		245		268	(8.6)
International	65		64	1.7		117		125	(6.6)
Worldwide	197		216	(8.4)		361		393	(8.0)
TOTAL CONSUMER HEALTH
U.S.	1,687		1,751	(3.6)		3,244		3,362	(3.5)
International	2,118		2,103	0.6		4,147		4,133	0.3
Worldwide	3,805		3,854	(1.3)		7,391		7,495	(1.4)

PHARMACEUTICAL(1)
Immunology
U.S.	2,853	2,748	3.8	5,354	5,161	3.7
International	1,559	1,483	5.1	3,176	2,984	6.4
Worldwide	4,411	4,231	4.3	8,530	8,145	4.7
REMICADE
U.S.	391	540	(27.4)	749	1,029	(27.1)
U.S. Exports	44	93	(53.0)	124	150	(17.5)
International	212	255	(17.2)	437	487	(10.3)
Worldwide	647	888	(27.2)	1,310	1,665	(21.4)
SIMPONI / SIMPONI ARIA
U.S.	301	290	3.8	588	545	7.9
International	266	294	(9.7)	549	601	(8.6)
Worldwide	566	584	(3.0)	1,137	1,146	(0.8)
STELARA
U.S.	1,731	1,496	15.7	3,110	2,827	10.0
International	868	778	11.6	1,777	1,595	11.4
Worldwide	2,599	2,274	14.3	4,887	4,422	10.5
TREMFYA
U.S.	382	325	17.7	773	599	29.1
International	214	155	38.3	413	298	38.6
Worldwide	597	479	24.4	1,187	897	32.3
OTHER IMMUNOLOGY
U.S.	3	5	(50.1)	9	12	(24.8)
International	0	1	*	0	3	*
Worldwide	3	7	(59.2)	9	15	(39.0)
Infectious Diseases
U.S.	415	444	(6.4)	876	956	(8.3)
International	901	575	56.8	1,737	1,060	63.9
Worldwide	1,316	1,018	29.3	2,613	2,016	29.6
COVID-19 VACCINE
U.S.	45	51	(11.5)	120	151	(20.4)
International	499	113	*	881	113	*
Worldwide	544	164	*	1,001	264	*
EDURANT / rilpivirine
U.S.	9	9	(1.7)	18	19	(7.4)
International	215	253	(14.7)	454	486	(6.5)
Worldwide	225	262	(14.3)	473	505	(6.5)
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
U.S.	355	368	(3.4)	724	748	(3.2)
International	110	137	(20.2)	242	303	(20.3)
Worldwide	464	505	(7.9)	965	1,051	(8.1)

OTHER INFECTIOUS DISEASES
U.S.	6	16	(62.5)	14	37	(62.5)
International	77	71	7.4	160	158	1.3
Worldwide	83	88	(5.4)	174	196	(10.9)
Neuroscience
U.S.	896	842	6.5	1,739	1,613	7.9
International	837	963	(13.0)	1,735	1,906	(8.9)
Worldwide	1,734	1,804	(3.9)	3,475	3,519	(1.2)
CONCERTA / methylphenidate
U.S.	38	35	9.4	73	82	(11.3)
International	123	127	(2.2)	245	250	(1.7)
Worldwide	161	161	0.3	318	332	(4.1)
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
U.S.	691	645	7.3	1,352	1,234	9.6
International	362	380	(4.6)	749	756	(0.8)
Worldwide	1,054	1,024	2.9	2,102	1,989	5.7
RISPERDAL CONSTA
U.S.	65	72	(8.9)	128	139	(7.7)
International	60	84	(28.0)	126	173	(27.1)
Worldwide	125	155	(19.3)	254	312	(18.4)
OTHER NEUROSCIENCE
U.S.	102	91	11.8	186	158	17.6
International	292	373	(21.8)	615	728	(15.5)
Worldwide	393	464	(15.2)	800	886	(9.6)
Oncology
U.S.	1,679	1,462	14.9	3,261	2,839	14.9
International	2,362	2,073	14.0	4,731	4,266	10.9
Worldwide	4,042	3,535	14.3	7,992	7,105	12.5
DARZALEX
U.S.	1,021	770	32.6	1,974	1,461	35.1
International	965	663	45.5	1,868	1,337	39.7
Worldwide	1,986	1,433	38.6	3,842	2,798	37.3
ERLEADA
U.S.	233	193	20.6	439	364	20.4
International	218	109	*	412	199	*
Worldwide	450	302	49.5	850	563	51.1
IMBRUVICA
U.S.	349	454	(23.1)	719	898	(19.9)
International	620	662	(6.3)	1,288	1,342	(4.0)
Worldwide	970	1,116	(13.1)	2,008	2,241	(10.4)
ZYTIGA / abiraterone acetate
U.S.	19	21	(12.2)	38	71	(47.0)
International	486	542	(10.2)	1,006	1,130	(11.0)
Worldwide	505	563	(10.3)	1,044	1,201	(13.1)

OTHER ONCOLOGY
U.S.	57	23	*	91	44	*
International	72	97	(25.7)	156	258	(39.4)
Worldwide	130	120	7.5	248	302	(18.0)
Pulmonary Hypertension
U.S.	560	595	(5.8)	1,132	1,168	(3.1)
International	284	275	2.8	563	563	(0.1)
Worldwide	843	870	(3.1)	1,695	1,731	(2.1)
OPSUMIT
U.S.	265	290	(8.7)	538	562	(4.3)
International	173	172	0.5	343	351	(2.2)
Worldwide	438	463	(5.3)	881	913	(3.5)
UPTRAVI
U.S.	272	268	1.4	541	527	2.6
International	56	45	26.2	112	91	23.5
Worldwide	328	313	4.9	653	618	5.7
OTHER PULMONARY HYPERTENSION
U.S.	23	36	(36.2)	53	78	(32.3)
International	55	59	(8.1)	108	122	(11.7)
Worldwide	78	95	(18.7)	161	200	(19.8)
Cardiovascular / Metabolism / Other
U.S.	757	780	(3.0)	1,429	1,579	(9.5)
International	215	241	(10.9)	453	486	(6.9)
Worldwide	972	1,021	(4.8)	1,882	2,065	(8.9)
XARELTO
U.S.	609	569	7.1	1,117	1,158	(3.5)
International	—	—	—	—	—	—
Worldwide	609	569	7.1	1,117	1,158	(3.5)
INVOKANA / INVOKAMET
U.S.	55	96	(42.9)	115	183	(37.1)
International	65	64	2.4	133	127	4.9
Worldwide	120	160	(24.9)	248	310	(19.9)
OTHER(2)
U.S.	93	116	(19.5)	197	238	(17.2)
International	150	178	(15.6)	320	360	(11.1)
Worldwide	243	293	(17.2)	517	598	(13.5)
TOTAL PHARMACEUTICAL
U.S.	7,159	6,869	4.2	13,791	13,315	3.6
International	6,158	5,611	9.8	12,395	11,266	10.0
Worldwide	13,317	12,480	6.7	26,186	24,581	6.5

MEDTECH(3)
Interventional Solutions
U.S.	525	475	10.5	1,019	909	12.1
International	525	572	(8.1)	1,123	1,086	3.4
Worldwide	1,049	1,046	0.3	2,141	1,995	7.4
Orthopaedics
U.S.	1,338	1,323	1.1	2,627	2,572	2.1
International	820	904	(9.3)	1,719	1,768	(2.8)
Worldwide	2,157	2,227	(3.1)	4,345	4,340	0.1
HIPS
U.S.	240	233	3.4	465	442	5.2
International	148	159	(6.6)	312	305	2.4
Worldwide	388	391	(0.7)	777	747	4.1
KNEES
U.S.	216	210	2.9	417	395	5.6
International	133	140	(4.6)	271	272	(0.4)
Worldwide	349	350	(0.1)	688	667	3.1
TRAUMA
U.S.	464	447	3.9	939	897	4.7
International	232	263	(11.8)	505	545	(7.4)
Worldwide	696	710	(1.9)	1,444	1,443	0.1
SPINE, SPORTS & OTHER
U.S.	418	434	(3.7)	805	838	(3.9)
International	306	343	(10.6)	630	646	(2.4)
Worldwide	724	777	(6.8)	1,436	1,484	(3.2)
Surgery
U.S.	992	1,035	(4.1)	1,913	1,933	(1.0)
International	1,458	1,487	(2.0)	2,971	2,961	0.3
Worldwide	2,450	2,522	(2.8)	4,884	4,894	(0.2)
ADVANCED
U.S.	454	459	(1.1)	871	864	0.8
International	702	708	(0.9)	1,431	1,421	0.7
Worldwide	1,156	1,168	(1.0)	2,302	2,286	0.7
GENERAL
U.S.	538	576	(6.4)	1,042	1,069	(2.5)
International	756	779	(3.0)	1,540	1,540	0.0
Worldwide	1,294	1,354	(4.5)	2,582	2,608	(1.0)
Vision
U.S.	496	467	6.2	1,017	939	8.3
International	745	716	4.0	1,481	1,389	6.6
Worldwide	1,241	1,183	4.9	2,498	2,328	7.3
CONTACT LENSES / OTHER
U.S.	374	352	6.6	774	723	7.2
International	519	517	0.4	1,030	1,003	2.7
Worldwide	894	868	2.9	1,804	1,725	4.5

SURGICAL
U.S.	122		115	5.1		243		216	12.1
International	225		199	13.6		451		386	17.0
Worldwide	347		314	10.5		694		602	15.2
TOTAL MEDTECH
U.S.	3,351		3,299	1.6		6,576		6,353	3.5
International	3,547		3,679	(3.6)		7,293		7,204	1.2
Worldwide	6,898		6,978	(1.1)		13,869		13,557	2.3
WORLDWIDE
U.S.	12,197		11,919	2.3		23,611		23,030	2.5
International	11,823		11,393	3.8		23,835		22,603	5.5
Worldwide	$	24,020	23,312	3.0	%	$	47,446	45,633	4.0	%

*Percentage greater than 100% or not meaningful

(1) Approximately $0.1 billion in the fiscal second quarter of 2021 and $0.2 billion in the fiscal six months of 2021, of certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes

(2) Inclusive of PROCRIT / EPREX which was previously disclosed separately

(3) Previously referred to as Medical Devices

Operating Profit by Segment of Business

EARNINGS BEFORE PROVISION FOR TAXES BY SEGMENT*

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2022		July 4, 2021	Percent Change		July 3, 2022		July 4, 2021	Percent Change
Consumer Health (1)	$	784	866	(9.5)	%	$	1,470	1,708	(13.9)	%
Pharmaceutical(2)	4,420		4,294	2.9		8,344		9,463	(11.8)
MedTech(3)	1,141		1,746	(34.7)		2,618		3,375	(22.4)
Segment earnings before provision for taxes	6,345		6,906	(8.1)		12,432		14,546	(14.5)
Less: Expense not allocated to segments (4)	237		244			360		455
Less: Consumer Health separation costs	268		—			370		—
Worldwide income before tax	$	5,840	6,662	(12.3)	%	$	11,702	14,091	(17.0)	%

*The 2021 fiscal second quarter and six months earnings before provision for taxes has been reclassified as certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes

(1) Consumer Health includes:

•Intangible amortization expense of $0.1 billion in both the fiscal second quarter of 2022 and 2021 and $0.2 billion in both the fiscal six months of 2022 and 2021.

•Litigation expense of $0.1 billion in both the fiscal second quarters and fiscal six months of 2022 and 2021, primarily for talc related costs.

(2) Pharmaceutical includes:

•Divestiture gains of $0.6 billion in the fiscal six months of 2021 related to two brands outside the U.S.

•Intangible amortization expense of $0.7 billion and $0.8 billion in the fiscal second quarter of 2022 and 2021, respectively. Intangible amortization expense of $1.5 billion and $1.7 billion in the fiscal six months of 2022 and 2021, respectively.

•In the fiscal six months of 2022, the Company recorded an intangible asset impairment charge of approximately $0.6 billion related to an in-process research and development asset, bermekimab (JnJ-77474462), an investigational drug for the treatment of Atopic Dermatitis (AD) and Hidradenitis Suppurativa (HS). Additional information regarding efficacy of the AD indication became available which led the Company to the decision to terminate the development of bermekimab for AD.

•A loss of $0.1 billion and a gain of $0.2 billion related to the change in the fair value of securities in the fiscal second quarter of 2022 and 2021, respectively. A loss of $0.5 billion and a gain of $0.1 billion related to the change in the fair value of securities in the fiscal six months of 2022 and 2021, respectively.

•COVID-19 Vaccine supply network related costs of $0.2 billion in both the fiscal second quarter and fiscal six months 2022

In fiscal 2021 and 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. In the fiscal second quarter of 2022, amounts paid for services to be delivered and contractually obligated to be paid to these contract manufacturing organizations of approximately $0.9 billion are reflected in the prepaid expenses and other and the accrued liabilities accounts in the Company's consolidated balance sheet. Additionally, the Company has entered into certain vaccine development cost sharing arrangements with government related organizations.

(3) MedTech includes:

•Litigation expense of $0.3 billion in both the fiscal second quarters and fiscal six months of 2022 primarily pelvic mesh related costs.

•A restructuring related charge of $0.2 billion and $0.1 billion in the fiscal six months of 2022 and 2021, respectively.

•Intangible amortization expense of $0.3 billion in both the fiscal second quarter of 2022 and 2021 and $0.5 billion in both the fiscal six months of 2022 and 2021.

(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 Second Quarter Ended					Fiscal Six Months Ended
(Dollars in Millions)	July 3, 2022		July 4, 2021	Percent Change		July 3, 2022		July 4, 2021	Percent Change
United States	$	12,197	11,919	2.3	%	$	23,611	23,030	2.5	%
Europe	6,085		5,668	7.3		12,109		11,082	9.3
Western Hemisphere, excluding U.S.	1,536		1,367	12.4		3,018		2,791	8.1
Asia-Pacific, Africa	4,202		4,358	(3.6)		8,708		8,730	(0.2)
Total	$	24,020	23,312	3.0	%	$	47,446	45,633	4.0	%