Segments of Business and Geographic Areas

9 Months Ended

Sep. 29, 2024

Segment Reporting [Abstract]

Segments of Business and Geographic Areas

Segments of business and geographic areas

Following the separation of the Consumer Health business in the fiscal third quarter of 2023, the Company is now organized into two business segments: Innovative Medicine and MedTech.

Sales by segment of business

	Fiscal Third Quarter Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change		September 29, 2024	October 1, 2023	Percent Change
INNOVATIVE MEDICINE
Immunology
U.S.	$3,068	3,193	(3.9)	%	$8,499	8,506	(0.1)	%
International	1,552	1,656	(6.2)		5,090	4,951	2.8
Worldwide	4,621	4,849	(4.7)		13,590	13,457	1.0
REMICADE
U.S.	281	296	(5.4)		778	849	(8.5)
U.S. Exports	27	38	(28.9)		89	112	(20.5)
International	112	127	(11.5)		380	449	(15.4)
Worldwide	419	461	(9.1)		1,246	1,410	(11.6)
SIMPONI / SIMPONI ARIA
U.S.	299	310	(3.7)		820	866	(5.3)
International	218	319	(31.8)		787	829	(5.1)
Worldwide	516	629	(18.0)		1,607	1,695	(5.2)
STELARA
U.S.	1,770	1,912	(7.5)		5,021	5,180	(3.1)
International	906	951	(4.8)		2,991	2,925	2.2
Worldwide	2,676	2,864	(6.6)		8,012	8,105	(1.2)
TREMFYA
U.S.	691	634	9.1		1,789	1,490	20.1
International	316	258	22.6		932	747	24.7
Worldwide	1,007	891	13.0		2,721	2,237	21.6
OTHER IMMUNOLOGY
U.S.	1	2	(45.6)		3	9	(66.8)
International	0	0	—		0	0	—
Worldwide	1	2	(45.6)		3	9	(66.8)
Infectious Diseases
U.S.	365	360	1.5		1,023	1,147	(10.8)
International	471	500	(5.7)		1,599	2,420	(33.9)
Worldwide	836	859	(2.7)		2,622	3,566	(26.5)
COVID-19 VACCINE
U.S.	0	0	—		0	0	—
International	1	41	(97.7)		198	1,073	(81.6)
Worldwide	1	41	(97.7)		198	1,073	(81.6)
EDURANT / rilpivirine

	Fiscal Third Quarter Ended			Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change	September 29, 2024	October 1, 2023	Percent Change
U.S.	8	9	(15.8)	24	26	(10.0)
International	323	287	12.3	926	816	13.5
Worldwide	330	297	11.5	950	843	12.7
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
U.S.	355	345	2.8	990	1,105	(10.5)
International	94	102	(6.9)	315	310	1.8
Worldwide	449	447	0.6	1,305	1,415	(7.8)
OTHER INFECTIOUS DISEASES
U.S.	3	5	(52.2)	10	15	(37.7)
International	53	69	(23.2)	160	220	(27.4)
Worldwide	55	74	(25.4)	169	235	(28.0)
Neuroscience
U.S.	1,094	1,036	5.6	3,250	3,043	6.8
International	662	706	(6.2)	2,090	2,296	(8.9)
Worldwide	1,755	1,742	0.8	5,340	5,339	0.0
CONCERTA / methylphenidate
U.S.	26	57	(55.0)	101	191	(47.5)
International	117	133	(11.9)	382	412	(7.3)
Worldwide	142	189	(24.8)	482	603	(20.0)
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
U.S.	780	730	6.8	2,329	2,164	7.6
International	269	299	(10.1)	830	940	(11.7)
Worldwide	1,049	1,029	1.9	3,159	3,104	1.8
SPRAVATO
U.S.	243	154	56.8	660	409	61.2
International	42	29	44.6	120	74	62.9
Worldwide	284	183	54.9	780	483	61.5
OTHER NEUROSCIENCE
U.S.	46	94	(51.4)	161	278	(42.1)
International	235	245	(4.4)	759	870	(12.8)

	Fiscal Third Quarter Ended			Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change	September 29, 2024	October 1, 2023	Percent Change
Worldwide	281	340	(17.4)	920	1,149	(19.9)
Oncology
U.S.	2,816	2,219	26.9	7,835	6,177	26.8
International	2,565	2,313	10.9	7,450	6,865	8.5
Worldwide	5,380	4,533	18.7	15,284	13,043	17.2
CARVYKTI
U.S.	258	140	84.9	565	324	74.6
International	27	12	*	63	17	*
Worldwide	286	152	87.7	629	341	84.3
DARZALEX
U.S.	1,684	1,369	23.0	4,789	3,882	23.4
International	1,332	1,130	17.9	3,797	3,312	14.6
Worldwide	3,016	2,499	20.7	8,586	7,194	19.3
ERLEADA
U.S.	337	288	17.1	940	778	20.8
International	453	342	32.4	1,275	961	32.6
Worldwide	790	631	25.4	2,215	1,740	27.3
IMBRUVICA
U.S.	259	264	(1.9)	770	796	(3.2)
International	494	545	(9.2)	1,537	1,681	(8.5)
Worldwide	753	808	(6.8)	2,307	2,476	(6.8)
TECVAYLI
U.S.	105	93	13.5	310	232	34.0
International	30	19	54.2	93	37	*
Worldwide	135	112	20.6	403	269	49.6
ZYTIGA / abiraterone acetate
U.S.	5	16	(66.0)	25	41	(38.0)
International	144	199	(27.1)	470	646	(27.1)
Worldwide	150	214	(30.0)	496	686	(27.8)
OTHER ONCOLOGY
U.S.	168	50	*	435	125	*
International	83	67	24.8	214	211	2.0
Worldwide	250	117	*	649	336	93.4
Pulmonary Hypertension
U.S.	815	680	20.0	2,324	1,964	18.4
International	287	274	4.5	866	835	3.7
Worldwide	1,102	954	15.6	3,190	2,798	14.0
OPSUMIT
U.S.	406	323	25.4	1,135	924	22.8
International	165	166	(0.2)	504	512	(1.6)
Worldwide	571	490	16.8	1,639	1,437	14.1
UPTRAVI

	Fiscal Third Quarter Ended			Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change	September 29, 2024	October 1, 2023	Percent Change
U.S.	379	336	12.7	1,120	978	14.5
International	80	66	21.8	232	185	25.5
Worldwide	458	402	14.2	1,352	1,163	16.3
OTHER PULMONARY HYPERTENSION
U.S.	32	20	54.0	70	61	14.0
International	40	42	(3.9)	129	137	(5.8)
Worldwide	72	63	15.0	199	199	0.3
Cardiovascular / Metabolism / Other
U.S.	713	763	(6.5)	2,061	2,254	(8.5)
International	170	194	(11.9)	543	580	(6.4)
Worldwide	884	957	(7.6)	2,605	2,834	(8.1)
XARELTO
U.S.	592	625	(5.2)	1,697	1,840	(7.8)
International	—	—	—	—	—	—
Worldwide	592	625	(5.2)	1,697	1,840	(7.8)
OTHER
U.S.	121	139	(12.2)	364	414	(11.9)
International	170	194	(11.9)	543	580	(6.4)
Worldwide	292	332	(12.0)	908	994	(8.7)
TOTAL INNOVATIVE MEDICINE
U.S.	8,871	8,249	7.5	24,993	23,090	8.2
International	5,709	5,644	1.2	17,639	17,947	(1.7)
Worldwide	14,580	13,893	4.9	42,632	41,037	3.9
MEDTECH
Cardiovascular(1)
U.S.	1,148	891	28.6	3,292	2,662	23.6
International	819	667	22.8	2,353	2,019	16.5
Worldwide	1,966	1,558	26.2	5,645	4,681	20.6
ELECTROPHYSIOLOGY
U.S.	660	611	7.9	2,057	1,791	14.8
International	619	549	12.7	1,889	1,658	14.0
Worldwide	1,279	1,161	10.2	3,946	3,449	14.4
ABIOMED
U.S.	293	254	15.4	905	790	14.5
International	68	57	20.1	207	176	17.7
Worldwide	362	311	16.3	1,112	966	15.1
SHOCKWAVE(2)
U.S.	163	—	*	240	—	*
International	66	—	*	66	—	*
Worldwide	229	—	*	306	—	*
OTHER CARDIOVASCULAR(1)
U.S.	30	26	16.7	89	81	10.6

	Fiscal Third Quarter Ended			Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change	September 29, 2024	October 1, 2023	Percent Change
International	66	61	7.7	192	186	3.0
Worldwide	96	87	10.4	281	267	5.3
Orthopaedics
U.S.	1,359	1,349	0.7	4,229	4,100	3.2
International	832	815	2.0	2,614	2,574	1.5
Worldwide	2,191	2,164	1.2	6,843	6,674	2.5
HIPS
U.S.	250	239	4.8	785	730	7.5
International	131	136	(3.6)	435	432	0.6
Worldwide	381	375	1.7	1,220	1,162	5.0
KNEES
U.S.	212	207	2.2	684	654	4.5
International	140	131	6.9	463	415	11.5
Worldwide	352	338	4.0	1,147	1,069	7.2
TRAUMA
U.S.	497	488	1.8	1,499	1,462	2.5
International	265	253	4.2	786	775	1.4
Worldwide	761	742	2.6	2,285	2,238	2.1
SPINE, SPORTS & OTHER
U.S.	400	415	(3.6)	1,262	1,254	0.6
International	296	295	0.4	930	952	(2.3)
Worldwide	696	710	(1.9)	2,191	2,205	(0.6)
Surgery
U.S.	983	994	(1.1)	2,965	2,984	(0.6)
International	1,451	1,483	(2.2)	4,373	4,522	(3.3)
Worldwide	2,434	2,479	(1.8)	7,338	7,507	(2.2)
ADVANCED
U.S.	448	455	(1.4)	1,360	1,365	(0.4)
International	661	709	(6.8)	1,977	2,139	(7.6)
Worldwide	1,109	1,164	(4.7)	3,337	3,504	(4.8)
GENERAL
U.S.	535	540	(0.9)	1,605	1,619	(0.9)
International	791	775	2.1	2,397	2,383	0.6
Worldwide	1,325	1,314	0.8	4,001	4,002	0.0
Vision
U.S.	549	512	7.2	1,619	1,599	1.3
International	751	744	0.9	2,224	2,265	(1.8)
Worldwide	1,300	1,256	3.5	3,843	3,864	(0.5)
CONTACT LENSES / OTHER
U.S.	441	399	10.2	1,288	1,252	2.8

	Fiscal Third Quarter Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change		September 29, 2024	October 1, 2023	Percent Change
International	527	529	(0.3)		1,508	1,568	(3.8)
Worldwide	968	928	4.2		2,796	2,820	(0.9)
SURGICAL
U.S.	108	112	(3.6)		331	346	(4.4)
International	225	216	3.9		717	698	2.7
Worldwide	333	328	1.3		1,048	1,044	0.3
TOTAL MEDTECH
U.S.	4,038	3,747	7.8		12,105	11,345	6.7
International	3,853	3,711	3.9		11,564	11,382	1.6
Worldwide	7,891	7,458	5.8		23,669	22,727	4.1
WORLDWIDE
U.S.	12,909	11,996	7.6		37,098	34,435	7.7
International	9,562	9,355	2.2		29,203	29,329	(0.4)
Worldwide	$22,471	21,351	5.2	%	$66,301	63,764	4.0	%

*    Percentage greater than 100% or not meaningful

(1) Previously referred to as Interventional Solutions

(2) Acquired on May 31, 2024

Earnings before provision for taxes by segment

	Fiscal Third Quarter Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change		September 29, 2024	October 1, 2023	Percent Change
Innovative Medicine(1)	$4,482	4,794	(6.5)	%	$14,910	14,008	6.4	%
MedTech(2)	1,059	1,185	(10.6)		3,668	4,265	(14.0)
Segment earnings before provision for taxes	5,541	5,979	(7.3)		18,578	18,273	1.7
Less: Expense not allocated to segments (3)	2,203	762			5,778	8,037
Worldwide income (loss) before tax	$3,338	5,217	(36.0)	%	$12,800	10,236	25.0	%

(1) Innovative Medicine includes:

•Intangible amortization expense of $0.7 billion in both the fiscal third quarter of 2024 and 2023. Intangible amortization expense of $2.1 billion and $2.2 billion in the fiscal nine months of 2024 and 2023, respectively.

•Expense of $1.25 billion to secure the global rights to the NM26 bispecific antibody (Yellow Jersey acquisition) in the fiscal third quarter and fiscal nine months of 2024.

•One-time COVID-19 Vaccine related exit costs of $0.1 billion and $0.7 billion in the fiscal nine months of 2024 and 2023, respectively.

•Monetization of royalty rights of $0.3 billion in the fiscal third quarter and fiscal nine months of 2024.

•A restructuring related charge of $0.1 billion in the fiscal nine months of 2024. A restructuring related charge of $0.1 billion and $0.4 billion in the fiscal third quarter and fiscal nine months of 2023, respectively. Refer to Note 12 for additional details.

•An In-process research and development impairment of $0.2 billion in the fiscal nine months of 2024 and $0.2 billion in the fiscal third quarter and fiscal nine months of 2023 associated with the M710 (biosimilar) asset acquired as part of the acquisition of Momenta Pharmaceuticals in 2020.

•Unfavorable changes in the fair value of securities of $0.4 billion and $0.5 billion in the fiscal third quarter and fiscal nine months of 2023, respectively.

•Litigation expense of $0.4 billion in both the fiscal third quarter and fiscal nine months of 2024, primarily related to Risperdal Gynecomastia. Favorable litigation related items of $0.1 billion in the fiscal nine months of 2023.

(2)    MedTech includes:

•Intangible amortization expense of $0.5 billion and $0.4 billion in the fiscal third quarter of 2024 and 2023, respectively. Intangible amortization expense of $1.3 billion and $1.1 billion in the fiscal nine months of 2024 and 2023, respectively.

•Acquisition and integration related expense of $0.3 billion and $0.9 billion, primarily driven by the Shockwave acquisition, in the fiscal third quarter and fiscal nine months of 2024, respectively. Acquisition and integration related expense of $0.1 billion in the fiscal nine months of 2023.

•A gain of $0.2 billion related to the Acclarent divestiture is included in the fiscal nine months of 2024.

•A restructuring related charge of $0.1 billion in the fiscal nine months of 2024. A restructuring related charge of $0.2 billion in the fiscal third quarter and fiscal nine months of 2023, respectively.

(3)    Amounts not allocated to segments include interest (income)/expense and general corporate (income)/expense. The fiscal third quarter of 2024 includes charges for talc matters of $2.0 billion. The fiscal nine months of 2024 and 2023 include charges for talc matters of approximately $5.1 billion and $7.0 billion, respectively (See Note 11, Legal Proceedings, for additional details). The fiscal nine months of 2024 includes a loss of approximately $0.4 billion related to the debt to equity exchange of the Company's remaining shares of Kenvue Common Stock. The fiscal third quarter and fiscal nine months of 2023 include $0.6 billion related to the unfavorable change in the fair value of Kenvue shares.

Sales by geographic area

	Fiscal Third Quarter Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024	October 1, 2023	Percent Change		September 29, 2024	October 1, 2023	Percent Change
United States	$12,909	11,996	7.6	%	$37,098	34,435	7.7	%
Europe	4,914	4,727	4.0		15,291	15,448	(1.0)
Western Hemisphere, excluding U.S.	1,173	1,171	0.3		3,579	3,383	5.8
Asia-Pacific, Africa	3,475	3,457	0.5		10,333	10,498	(1.6)
Total	$22,471	21,351	5.2	%	$66,301	63,764	4.0	%