Johnson & Johnson returned to delivering operational sales growth in 2011. We grew adjusted earnings(1) for the 28th consecutive year. Our worldwide sales were $65.0 billion, an increase of 5.6 percent. Sales increased operationally 2.8 percent, reflecting the strength of new product launches in our Pharmaceuticals business segment, steady performance across our MD&D franchise, science-based innovations in our Consumer business and strong growth in emerging markets.
Approximately 70 percent of our sales were from products with No. 1 or No. 2 global market share positions. Approximately 25 percent of our sales were from products introduced in the past five years.
With our continued focus on financial discipline, our adjusted earnings were $13.9 billion(1) and adjusted earnings per share were $5.00(1), representing increases of 4.4 percent and 5.0 percent, respectively.
We invested $7.5 billion in R&D and advanced robust pipelines across all three of our business segments.
We generated significant free cash flow of approximately $11.4 billion(2), maintained our AAA credit rating and increased the dividend to our shareholders for the 49th consecutive year.
Solid and consistent returns to shareholders have been a hallmark of Johnson & Johnson. During 2011, we generated a one-year total shareholder return of nearly 10 percent, exceeding the Standard & Poor's 500 and Dow Jones Industrial Average. Over longer timeframes, we continue to compare favorably to those indices. With a long-term management focus, our company has remained a solid investment choice for decades. (For more details, see the 2011 Business Segment Highlights.)
(1) Excludes special items.
(2) Free cash flow is defined as operating cash flow less capital spending. See Reconciliation of Non-GAAP Financial Measures.