Johnson & Johnson
Jan 23, 2018

Johnson & Johnson Reports 2017 Fourth-Quarter Results:

2017 Fourth-Quarter Sales of $20.2 Billion Increased 11.5%; EPS was a Loss of $3.99
2017 Full-Year Sales of $76.5 Billion Increased 6.3%, Full-Year EPS was $0.47
Adjusted 2017 Fourth-Quarter EPS was $1.74, an Increase of 10.1%*, and Adjusted 2017 Full-Year EPS was $7.30, an Increase of 8.5%*
Continued Sales Acceleration in Fourth Quarter
Strong 2017 Full-Year Adjusted EPS Growth of Approximately 8.5%*
Company Records Special Item Charge of Approximately $13.6 Billion Related to Recently Enacted Tax Legislation

NEW BRUNSWICK, N.J., Jan. 23, 2018 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $20.2 billion for the fourth quarter of 2017, an increase of 11.5% as compared to the fourth quarter of 2016. Operational sales results increased 9.4% and the positive impact of currency was 2.1%. Domestic sales increased 9.8%. International sales increased 13.5%, reflecting operational growth of 9.0% and a positive currency impact of 4.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the fourth quarter of 2017 increased 4.2%, domestic sales increased 4.1% and international sales increased 4.3%.*

Worldwide sales for the full-year 2017 were $76.5 billion, an increase of 6.3% versus 2016. Operational results increased 6.0% and the positive impact of currency was 0.3%. Domestic sales increased 5.4%. International sales increased 7.4%, reflecting operational growth of 6.6% and a positive currency impact of 0.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the full-year 2017 increased 2.4%, domestic sales increased 1.6% and international sales increased 3.3%.*

Net loss and diluted loss per share for the fourth quarter of 2017 were $10.7 billion and $3.99, respectively. Fourth-quarter 2017 net loss included after-tax intangible amortization expense of approximately $0.9 billion and a net charge for after-tax special items of approximately $14.6 billion. Included in these special items is a provisional amount of approximately $13.6 billion associated with the recent enactment of tax legislation.** Fourth-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a net charge for after-tax special items of approximately $0.3 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.8 billion and adjusted diluted earnings per share were $1.74, representing increases of 9.5% and 10.1%, respectively, as compared to the same period in 2016.* On an operational basis, adjusted diluted earnings per share increased 5.7%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

Net earnings and diluted earnings per share for the full-year 2017 were $1.3 billion and $0.47, respectively.  Full-year net earnings included after-tax intangible amortization expense of approximately $2.5 billion and a charge for after-tax special items of approximately $16.2 billion. Included in these special items is a provisional amount of approximately $13.6 billion associated with the recent enactment of tax legislation.** Full-year 2016 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $1.3 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2017 were $20.0 billion and adjusted diluted earnings per share were $7.30, representing increases of 6.8% and 8.5%, respectively, as compared to the same period in 2016.* On an operational basis, adjusted diluted earnings per share also increased 7.6%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"Johnson & Johnson delivered strong adjusted earnings per share growth of 8.5% and total shareholder return of greater than 24% in 2017, driven by the robust performance of our Pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses," said Alex Gorsky, Chairman and Chief Executive Officer. "As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. Johnson & Johnson is uniquely positioned to lead during this dynamic era and deliver innovative solutions for patients and consumers that drive sustainable, long-term growth. We are pleased with the passage of recent legislation modernizing the U.S. tax system, which enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs facing health care today."

Mr. Gorsky continued, "I want to thank all of our talented colleagues for their commitment, passion and dedication to transforming the lives of patients and consumers worldwide."

The Company announced its 2018 full-year guidance for sales of $80.6 billion to $81.4 billion reflecting expected operational growth in the range of 3.5% to 4.5%. The Company also announced adjusted earnings guidance for full-year 2018 of $8.00 to $8.20 per share reflecting expected operational growth in the range of 6.8% to 9.6%.* Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.

Segment Sales Performance
Worldwide Consumer sales of $13.6 billion for the full-year 2017 represented an increase of 2.2% versus the prior year, consisting of an operational increase of 1.3% and a positive impact from currency of 0.9%. Domestic sales increased 2.7%; international sales increased 1.9%, which reflected an operational increase of 0.4% and a positive currency impact of 1.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales decreased 0.5%, domestic sales decreased 0.7% and international sales decreased 0.3%*.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were negatively impacted by declines in the Baby Care and Oral Care businesses, mostly offset by growth in over-the-counter products, including TYLENOL® analgesics and upper respiratory products, and NEUTROGENA® beauty products.

Worldwide Pharmaceutical sales of $36.3 billion for the full-year 2017 represented an increase of 8.3% versus the prior year with an operational increase of 8.0% and a positive impact from currency of 0.3%. Domestic sales increased 6.7%; international sales increased 10.8%, which reflected an operational increase of 10.1% and a positive currency impact of 0.7%. Sales included the impact of the acquisition of Actelion Ltd. which was completed in June 2017 and contributed 4.2% to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 4.2%, domestic sales increased 3.1% and international sales increased 5.8%.*  Worldwide operational sales growth was negatively impacted by approximately 1.8 points due to a positive adjustment of U.S. rebate accruals in the first half of 2016, which did not repeat in the first half  of 2017.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by new products and the strength of core products. Strong growth in new products include DARZALEX® (daratumumab), for the treatment of patients with multiple myeloma, IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer and TREMFYA® (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis.

Additional contributors to operational sales growth included STELARA® (ustekinumab), a biologic for the treatment of  a number of immune-mediated inflammatory diseases, INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, ZYTIGA®  (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, and XARELTO® (rivaroxaban), an oral anticoagulant, partially offset by declines in REMICADE® (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, due to biosimilar entrants.

During the quarter, the U.S. Food and Drug Administration (FDA) approved JULUCA® (rilpivirine and dolutegravir), the first, complete, single-pill, two-drug regimen for the treatment of human immunodeficiency virus type 1 (HIV-1) infection; a 10 mg once-daily dose of XARELTO® (rivaroxaban) for reducing the continued risk for recurrent venous thromboembolism after completing at least six months of initial anticoagulation therapy; and SIMPONI ARIA® (golimumab) for the treatment of adults with active psoriatic arthritis or active ankylosing spondylitis. The European Commission approved TREMFYA® (guselkumab) for the treatment of adults with moderate to severe plaque psoriasis and granted approval to broaden the existing marketing authorization for ZYTIGA® (abiraterone acetate) plus prednisone / prednisolone to include the treatment of newly-diagnosed high-risk metastatic hormone-sensitive prostate cancer.

Regulatory applications for approval were submitted to the FDA and European Medicines Agency to expand the current indication of DARZALEX® (daratumumab) for use in combination with bortezomib, melphalan and prednisone, as a treatment for newly diagnosed patients with multiple myeloma ineligible for autologous stem cell transplantation.  In addition, a supplemental New Drug Application was submitted to the FDA for two new XARELTO® (rivaroxaban) vascular indications: reducing the risk of major cardiovascular (CV) events such as CV death, heart attack or stroke in patients with chronic coronary and/or peripheral artery disease (CAD/PAD), and for reducing the risk of acute limb ischemia in patients with PAD.

Also in the quarter, a worldwide collaboration and license agreement was executed with Legend Biotech, a subsidiary of GenScript Biotech Corporation, to develop, manufacture and commercialize a chimeric antigen receptor (CAR) T-cell therapy, LCAR-B38M, targeting BCMA for the treatment of multiple myeloma.

Worldwide Medical Devices sales of $26.6 billion for the full-year 2017 represented an increase of 5.9% versus the prior year consisting of an operational increase of 5.7% and a positive currency impact of 0.2%. Domestic sales increased 4.5%; international sales increased 7.1%, which reflected an operational increase of 6.7% and a positive currency impact of 0.4%. Sales included the impact of the acquisition of Abbott Medical Optics which contributed 4.5%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.5%, domestic sales were flat and international sales increased 3.0%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business; endocutters and biosurgicals in the Advanced Surgery business; ACUVUE® contact lenses in the Vision Care business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business and spine products in the Orthopaedics business.

About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

** The provisional estimates are based on the Company's initial analysis of the Tax Cuts and Jobs Act (the "Act") as of January 18, 2018.  Given the significant complexity of the Act, anticipated guidance from the U. S. Treasury about implementing the Act, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Act, these estimates may be adjusted during 2018.

Johnson & Johnson will conduct a conference call with investors to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can be found on the company's website at www.investor.jnj.com.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic and financial market factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; significant adverse litigation or government action, including related to product liability claims and allegations concerning opioid marketing practices; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 1, 2017, including under "Item 1A. Risk Factors," its most recently filed Quarterly Report on Form 10-Q, including in the section captioned "Cautionary Note Regarding Forward-Looking Statements," and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.jnj.com, or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

FOURTH QUARTER


TWELVE MONTHS






Percent Change






Percent Change


2017


2016


Total


Operations


Currency


2017


2016


Total


Operations


Currency

Sales to customers by




















segment of business








































Consumer




















    U.S.

$   1,379


1,387


(0.6)

%

(0.6)


-


$   5,565


5,420


2.7

%

2.7


-

    International

2,161


2,045


5.7


1.2


4.5


8,037


7,887


1.9


0.4


1.5


3,540


3,432


3.1


0.4


2.7


13,602


13,307


2.2


1.3


0.9





















Pharmaceutical




















    U.S.

5,776


5,002


15.5


15.5


-


21,474


20,125


6.7


6.7


-

    International

3,905


3,230


20.9


15.5


5.4


14,782


13,339


10.8


10.1


0.7


9,681


8,232


17.6


15.5


2.1


36,256


33,464


8.3


8.0


0.3





















Medical Devices




















    U.S.

3,314


3,148


5.3


5.3


-


12,824


12,266


4.5


4.5


-

    International

3,660


3,294


11.1


7.5


3.6


13,768


12,853


7.1


6.7


0.4


6,974


6,442


8.3


6.5


1.8


26,592


25,119


5.9


5.7


0.2





















U.S.

10,469


9,537


9.8


9.8


-


39,863


37,811


5.4


5.4


-

International

9,726


8,569


13.5


9.0


4.5


36,587


34,079


7.4


6.6


0.8

Worldwide

$ 20,195


18,106


11.5

%

9.4


2.1


$ 76,450


71,890


6.3

%

6.0


0.3

 

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

FOURTH QUARTER


TWELVE MONTHS






Percent Change






Percent Change


2017


2016


Total


Operations


Currency


2017


2016


Total


Operations

Currency

Sales to customers by




















geographic area








































U.S.

$ 10,469


9,537


9.8

%

9.8


-


$ 39,863


37,811


5.4

%

5.4


-





















Europe

4,728


4,001


18.2


10.1


8.1


17,126


15,770


8.6


7.2


1.4

Western Hemisphere excluding U.S.

1,519


1,465


3.7


1.8


1.9


6,041


5,734


5.4


2.8


2.6

Asia-Pacific, Africa

3,479


3,103


12.1


11.1


1.0


13,420


12,575


6.7


7.5


(0.8)

International

9,726


8,569


13.5


9.0


4.5


36,587


34,079


7.4


6.6


0.8





















Worldwide

$ 20,195


18,106


11.5

%

9.4


2.1


$ 76,450


71,890


6.3

%

6.0


0.3

 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

FOURTH QUARTER












2017


2016


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$  20,195


100.0


$ 18,106


100.0


11.5

Cost of products sold

7,243


35.9


5,534


30.5


30.9

Selling, marketing and administrative expenses

6,025


29.8


5,309


29.3


13.5

Research and development expense

3,635


18.0


2,640


14.6


37.7

In-process research and development

408


2.0


-


-



Interest (income) expense, net

189


0.9


84


0.5



Other (income) expense, net

(9)


0.0


20


0.1



Restructuring

144


0.7


195


1.1



Earnings before provision for taxes on income

2,560


12.7


4,324


23.9


(40.8)

Provision for taxes on income

13,273


65.7


510


2.8



Net earnings/(Loss)

$ (10,713)


(53.0)


$   3,814


21.1


(380.9)











Net earnings/(Loss) per share (Basic/Diluted)*

$     (3.99)




$     1.38




(389.1)











Average shares outstanding (Basic/Diluted)*

2,684.9




2,764.5















Effective tax rate

518.5

%



11.8

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$    5,251


26.0


$   5,103


28.2


2.9

Net earnings

$    4,777


23.7


$   4,361


24.1


9.5

Net earnings per share (Diluted)

$      1.74




$     1.58




10.1

Average shares outstanding (Diluted)**

2,740.7




2,764.5





Effective tax rate

9.0

%



14.5

%














*Basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive.















**Difference of 55.8 shares due to anti-dilutive impact on net loss position.




















(1)See Reconciliation of Non-GAAP Financial Measures.










 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS












2017


2016


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$ 76,450


100.0


$ 71,890


100.0


6.3

Cost of products sold

25,354


33.2


21,685


30.2


16.9

Selling, marketing and administrative expenses

21,420


28.0


19,945


27.7


7.4

Research and development expense

10,554


13.8


9,095


12.7


16.0

In-process research and development

408


0.6


29


0.0



Interest (income) expense, net

549


0.7


358


0.5



Other (income) expense, net

183


0.2


484


0.7



Restructuring

309


0.4


491


0.7



Earnings before provision for taxes on income

17,673


23.1


19,803


27.5


(10.8)

Provision for taxes on income

16,373


21.4


3,263


4.5


401.8

Net earnings

$   1,300


1.7


$ 16,540


23.0


(92.1)











Net earnings per share (Diluted)

$     0.47




$     5.93




(92.1)











Average shares outstanding (Diluted)

2,745.3




2,788.9















Effective tax rate

92.6

%



16.5

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$ 24,212


31.7


$ 22,759


31.7


6.4

Net earnings

$ 20,040


26.2


$ 18,764


26.1


6.8

Net earnings per share (Diluted)

$     7.30




$     6.73




8.5

Effective tax rate

17.2

%



17.6

%














(1)See Reconciliation of Non-GAAP Financial Measures.










 

 

Johnson & Johnson and Subsidiaries















Reconciliation of Non-GAAP Financial Measures
































Fourth Quarter


% Incr. /



Twelve Months 


% Incr. /


(Dollars in Millions Except Per Share Data)


2017


2016


(Decr.)



2017


2016


(Decr.)

















Earnings before provision for taxes on income - as reported


$    2,560


4,324


(40.8)

%


$ 17,673


19,803


(10.8)

%

Intangible asset amortization expense


1,077


344





2,963


1,271




Litigation expense, net


645


96





1,256


817




Actelion acquisition related cost


217


-





797


-




Restructuring/Other (1)


284


298





760


685




In-process research and development


408


-





408


29




Diabetes asset impairment


35


-





215


-




AMO acquisition related cost


25


-





140


-




DePuy ASR™ Hip program


-


9





-


9




Other


-


32





-


145




Earnings before provision for taxes on income - as adjusted


$    5,251


5,103


2.9

%


$ 24,212


22,759


6.4

%
















Net Earnings/(Loss) - as reported


$ (10,713)


3,814


(380.9)

%


$   1,300


16,540


(92.1)

%

Impact of tax legislation


13,556


-





13,556


-




Intangible asset amortization expense


926


252





2,481


931




Litigation expense, net


506


80





955


675




Actelion acquisition related cost


313


-





767


-




Restructuring/Other


237


251





595


544




In-process research and development


266


-





266


23




Diabetes asset impairment


(116)


-





4


-




AMO acquisition related cost


(198)


-





116


-




DePuy ASR™ Hip program


-


7





-


7




Other


-


(43)





-


44




Net Earnings - as adjusted 


$    4,777


4,361


9.5

%


$ 20,040


18,764


6.8

%
















Diluted Net Earnings/(Loss) per share - as reported


$     (3.99)


1.38


(389.1)

%


$     0.47


5.93


(92.1)

%

Dilutive impact of shares excluded due to net loss position


0.08


-





-


-




Impact of tax legislation


4.94


-





4.94


-




Intangible asset amortization expense


0.34


0.09





0.90


0.33




Litigation expense, net


0.19


0.03





0.35


0.24




Actelion acquisition related cost


0.11


-





0.28


-




Restructuring/Other


0.08


0.09





0.22


0.20




In-process research and development


0.10


-





0.10


0.01




Diabetes asset impairment


(0.04)


-





-


-




AMO acquisition related cost


(0.07)


-





0.04


-




DePuy ASR™ Hip program


-


-





-


-




Other


-


(0.01)





-


0.02




Diluted Net Earnings per share - as adjusted 


$      1.74


1.58


10.1

%


$     7.30


6.73


8.5

%
















Operational Diluted Net Earnings per share - as adjusted at 2015
foreign currency exchange rates




1.59







6.78



















Impact of currency at 2016 foreign currency exchange rates


(0.07)


(0.01)





(0.06)


(0.05)



















Operational Diluted Net Earnings per share - as adjusted at 2016
foreign currency exchange rates


$      1.67


1.58


5.7

%


$     7.24


6.73


7.6

%































(1) Includes $42M recorded in cost of products sold and $98M recorded in other (income) expense for the fourth quarter 2017, and $18M recorded in cost of products sold 


     and $85M recorded in other (income) expense for the fourth quarter 2016.













     Includes $88M recorded in cost of products sold and $363M recorded in other (income) expense for twelve months YTD 2017, and $45M recorded in cost of products sold


     and $149M recorded in other (income) expense for twelve months YTD 2016.













 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions and Divestitures

 FOURTH QUARTER 2017 ACTUAL vs. 2016 ACTUAL 











 Segments 












 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total 



Operational % (1)

 WW As Reported: 


0.4%


15.5%


6.5%


9.4%

 U.S. 


(0.6)%


15.5%


5.3%


9.8%

 International 


1.2%


15.5%


7.5%


9.0%










Vision Care









Abbott Medical Optics






(5.4)


(1.9)

 U.S. 






(4.9)


(1.7)

 International 






(5.8)


(2.2)










Pulmonary Hypertension









Actelion




(7.4)




(3.4)

 U.S. 




(7.3)




(3.8)

 International 




(7.6)




(2.8)










Cardiovascular / Metabolism / Other









Actelion




(0.5)




(0.2)

 U.S. 




(0.3)




(0.2)

 International 




(0.7)




(0.3)










Spine & Other 






1.2


0.5

Codman Neuroscience






0.8


0.2

 U.S. 






1.6


0.6

 International 


















All Other Acquisitions and Divestitures


(0.2)




(0.3)


(0.2)

 U.S. 


0.0




(0.9)


(0.2)

 International 


(0.5)




0.3


0.0










WW Ops excluding Acquisitions and Divestitures


0.2%


7.6%


2.0%


4.2%

 U.S. 


(0.6)%


7.9%


0.3%


4.1%

 International 


0.7%


7.2%


3.6%


4.3%










(1)Operational growth excludes the effect of translational currency









 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions and Divestitures

 TWELVE MONTHS 2017 ACTUAL vs. 2016 ACTUAL 











 Segments 












 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total 



Operational % (1)

 WW As Reported: 


1.3%


8.0%


5.7%


6.0%

 U.S. 


2.7%


6.7%


4.5%


5.4%

 International 


0.4%


10.1%


6.7%


6.6%










Beauty









Vogue


(1.5)






(0.3)

 U.S. 


(3.1)






(0.4)

 International 


(0.4)






(0.1)










Other Neuroscience









Controlled Substance Raw Material and API Business




0.4




0.2

 U.S. 




0.5




0.2

 International 




0.2




0.1










Diagnostics









Ortho-Clinical Diagnostics






0.2


0.0

 U.S. 






0.0


0.0

 International 






0.5


0.1










Beauty









Dr. Ci: Labo 


(0.3)






(0.1)

 U.S. 


0.0






0.0

 International 


(0.6)






(0.1)










Vision Care









Abbott Medical Optics






(4.5)


(1.5)

 U.S. 






(4.0)


(1.3)

 International 






(4.9)


(1.8)










Pulmonary Hypertension









Actelion




(4.0)




(1.9)

 U.S. 




(3.8)




(2.0)

 International 




(4.2)




(1.7)










Cardiovascular / Metabolism / Other









Actelion




(0.2)




(0.1)

 U.S. 




(0.3)




(0.1)

 International 




(0.3)




(0.1)










Spine & Other 









Codman Neuroscience






0.3


0.1

 U.S. 






0.2


0.1

 International 






0.5


0.2










All Other Acquisitions and Divestitures


0.0




(0.2)


0.0

 U.S. 


(0.3)




(0.7)


(0.3)

 International 


0.3




0.2


0.1










WW Ops excluding Acquisitions and Divestitures


(0.5)%


4.2%


1.5%


2.4%

 U.S. 


(0.7)%


3.1%


0.0%


1.6%

 International 


(0.3)%


5.8%


3.0%


3.3%










(1)Operational growth excludes the effect of translational currency









 

 



REPORTED SALES vs. PRIOR PERIOD ($MM)


FOURTH QUARTER


TWELVE MONTHS






% Change






% Change



2017


2016

Reported

Operational (1)

Currency



2017


2016

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2)
















BABY CARE
















US


$           123


$               123

0.0%

0.0%

-



$                  449


$                  488

-8.0%

-8.0%

-

Intl


367


370

-0.8%

-3.2%

2.4%



1,467


1,513

-3.0%

-3.6%

0.6%

WW


490


493

-0.6%

-2.4%

1.8%



1,916


2,001

-4.2%

-4.7%

0.5%

BEAUTY
















US


596


580

2.8%

2.8%

-



2,335


2,135

9.4%

9.4%

-

Intl


514


483

6.4%

2.0%

4.4%



1,865


1,762

5.8%

4.5%

1.3%

WW


1,110


1,063

4.4%

2.4%

2.0%



4,200


3,897

7.8%

7.2%

0.6%

ORAL CARE
















US


156


163

-4.3%

-4.3%

-



616


648

-4.9%

-4.9%

-

Intl


237


234

1.3%

-2.6%

3.9%



915


920

-0.5%

-1.8%

1.3%

WW


393


397

-1.0%

-3.3%

2.3%



1,531


1,568

-2.4%

-3.2%

0.8%

OTC
















US


406


418

-2.9%

-2.9%

-



1,716


1,675

2.4%

2.4%

-

Intl


699


621

12.6%

6.3%

6.3%



2,410


2,302

4.7%

2.7%

2.0%

WW


1,105


1,039

6.4%

2.6%

3.8%



4,126


3,977

3.7%

2.6%

1.1%

WOMEN'S HEALTH
















US


3


3

0.0%

0.0%

-



12


19

-36.8%

-36.8%

-

Intl


259


261

-0.8%

-4.5%

3.7%



1,038


1,048

-1.0%

-3.1%

2.1%

WW


262


264

-0.8%

-4.4%

3.6%



1,050


1,067

-1.6%

-3.7%

2.1%

WOUND CARE / OTHER
















US


95


100

-5.0%

-5.0%

-



437


455

-4.0%

-4.0%

-

Intl


85


76

11.8%

6.1%

5.7%



342


342

0.0%

-1.7%

1.7%

WW


180


176

2.3%

-0.1%

2.4%



779


797

-2.3%

-3.0%

0.7%

















TOTAL CONSUMER
















US


1,379


1,387

-0.6%

-0.6%

-



5,565


5,420

2.7%

2.7%

-

Intl


2,161


2,045

5.7%

1.2%

4.5%



8,037


7,887

1.9%

0.4%

1.5%

WW


$        3,540


$            3,432

3.1%

0.4%

2.7%



$             13,602


$             13,307

2.2%

1.3%

0.9%

































See footnotes at end of schedule


































REPORTED SALES vs. PRIOR PERIOD ($MM)


FOURTH QUARTER


TWELVE MONTHS






% Change






% Change



2017


2016

Reported

Operational (1)

Currency



2017


2016

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2) (3)
















IMMUNOLOGY
















US


$        2,227


$            2,157

3.2%

3.2%

-



$               8,871


$               8,846

0.3%

0.3%

-

Intl


859


779

10.3%

5.2%

5.1%



3,373


3,122

8.0%

6.7%

1.3%

WW


3,086


2,936

5.1%

3.7%

1.4%



12,244


11,968

2.3%

2.0%

0.3%

REMICADE
















US 


1,073


1,173

-8.5%

-8.5%

-



4,525


4,842

-6.5%

-6.5%

-

US Exports (4)


115


109

5.5%

5.5%

-



563


782

-28.0%

-28.0%

-

Intl


278


342

-18.7%

-22.6%

3.9%



1,227


1,342

-8.6%

-10.2%

1.6%

WW


1,466


1,624

-9.7%

-10.5%

0.8%



6,315


6,966

-9.3%

-9.6%

0.3%

SIMPONI / SIMPONI ARIA
















US


253


243

4.1%

4.1%

-



954


959

-0.5%

-0.5%

-

Intl


237


183

29.5%

25.1%

4.4%



879


786

11.8%

10.9%

0.9%

WW


490


426

15.0%

13.1%

1.9%



1,833


1,745

5.0%

4.6%

0.4%

STELARA
















US


740


632

17.1%

17.1%

-



2,767


2,263

22.3%

22.3%

-

Intl


341


247

38.1%

30.6%

7.5%



1,244


969

28.4%

27.2%

1.2%

WW


1,081


879

23.0%

20.9%

2.1%



4,011


3,232

24.1%

23.7%

0.4%

OTHER IMMUNOLOGY
















US


46


-

*

*

-



62


-

*

*

-

Intl


3


7

-57.1%

-57.1%

0.0%



23


25

-8.0%

-9.3%

1.3%

WW


49


7

*

*

0.0%



85


25

*

*

1.3%

INFECTIOUS DISEASES
















US


338


354

-4.5%

-4.5%

-



1,358


1,461

-7.0%

-7.0%

-

Intl


462


407

13.5%

5.9%

7.6%



1,796


1,747

2.8%

1.0%

1.8%

WW


800


761

5.1%

1.0%

4.1%



3,154


3,208

-1.7%

-2.7%

1.0%

EDURANT / rilpivirine
















US


14


14

0.0%

0.0%

-



58


52

11.5%

11.5%

-

Intl


178


151

17.9%

8.9%

9.0%



656


521

25.9%

23.1%

2.8%

WW


192


165

16.4%

8.2%

8.2%



714


573

24.6%

22.1%

2.5%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
















US


285


283

0.7%

0.7%

-



1,109


1,143

-3.0%

-3.0%

-

Intl


185


164

12.8%

5.5%

7.3%



712


708

0.6%

-0.8%

1.4%

WW


470


447

5.1%

2.4%

2.7%



1,821


1,851

-1.6%

-2.1%

0.5%

OTHER INFECTIOUS DISEASES
















US


39


57

-31.6%

-31.6%

-



191


266

-28.2%

-28.2%

-

Intl


99


92

7.6%

1.5%

6.1%



428


518

-17.4%

-18.7%

1.3%

WW


138


149

-7.4%

-11.1%

3.7%



619


784

-21.0%

-21.9%

0.9%





































REPORTED SALES vs. PRIOR PERIOD ($MM)




FOURTH QUARTER


TWELVE MONTHS








% Change






% Change





2017


2016

Reported

Operational (1)

Currency



2017


2016

Reported

Operational (1)

Currency



NEUROSCIENCE


















US


699


631

10.8%

10.8%

-



2,630


2,628

0.1%

0.1%

-



Intl


825


839

-1.7%

-5.3%

3.6%



3,356


3,457

-2.9%

-3.0%

0.1%



WW


1,524


1,470

3.7%

1.6%

2.1%



5,986


6,085

-1.6%

-1.6%

0.0%



CONCERTA / METHYLPHENIDATE


















US


100


103

-2.9%

-2.9%

-



384


468

-17.9%

-17.9%

-



Intl


103


101

2.0%

-0.6%

2.6%



407


395

3.0%

2.8%

0.2%



WW


203


204

-0.5%

-1.8%

1.3%



791


863

-8.3%

-8.4%

0.1%



INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA


















US


436


360

21.1%

21.1%

-



1,590


1,343

18.4%

18.4%

-



Intl


257


225

14.2%

8.0%

6.2%



979


871

12.4%

11.6%

0.8%



WW


693


585

18.5%

16.1%

2.4%



2,569


2,214

16.0%

15.7%

0.3%



RISPERDAL CONSTA


















US


87


92

-5.4%

-5.4%

-



360


381

-5.5%

-5.5%

-



Intl


110


118

-6.8%

-11.5%

4.7%



445


512

-13.1%

-13.4%

0.3%



WW


197


210

-6.2%

-8.8%

2.6%



805


893

-9.9%

-10.1%

0.2%



OTHER NEUROSCIENCE


















US


76


76

0.0%

0.0%

-



296


436

-32.1%

-32.1%

-



Intl


355


395

-10.1%

-12.2%

2.1%



1,525


1,679

-9.2%

-8.7%

-0.5%



WW


431


471

-8.5%

-10.2%

1.7%



1,821


2,115

-13.9%

-13.5%

-0.4%



ONCOLOGY


















US


891


595

49.7%

49.7%

-



3,098


2,335

32.7%

32.7%

-



Intl


1,148


867

32.4%

26.0%

6.4%



4,160


3,472

19.8%

19.1%

0.7%



WW


2,039


1,462

39.5%

35.7%

3.8%



7,258


5,807

25.0%

24.6%

0.4%



DARZALEX


















US


241


151

59.6%

59.6%

-



884


471

87.7%

87.7%

-



Intl


130


49

*

*

*



358


101

*

*

*



WW


371


200

85.5%

82.3%

3.2%



1,242


572

*

*

*



IMBRUVICA


















US


219


158

38.6%

38.6%

-



841


613

37.2%

37.2%

-



Intl


303


188

61.2%

52.2%

9.0%



1,052


638

64.9%

63.2%

1.7%



WW


522


346

50.9%

46.0%

4.9%



1,893


1,251

51.3%

50.4%

0.9%



VELCADE


















US


-


-

-

-

-



-


-

-

-

-



Intl


271


274

-1.1%

-5.6%

4.5%



1,114


1,224

-9.0%

-8.8%

-0.2%



WW


271


274

-1.1%

-5.6%

4.5%



1,114


1,224

-9.0%

-8.8%

-0.2%



ZYTIGA


















US


402


249

61.4%

61.4%

-



1,228


1,089

12.8%

12.8%

-



Intl


353


270

30.7%

25.0%

5.7%



1,277


1,171

9.1%

8.5%

0.6%



WW


755


519

45.5%

42.5%

3.0%



2,505


2,260

10.8%

10.5%

0.3%



OTHER ONCOLOGY


















US


29


37

-21.6%

-21.6%

-



145


162

-10.5%

-10.5%

-



Intl


91


86

5.8%

0.5%

5.3%



359


338

6.2%

5.6%

0.6%



WW


120


123

-2.4%

-6.1%

3.7%



504


500

0.8%

0.4%

0.4%



PULMONARY HYPERTENSION(5)


















US


365


-

*

*

-



773


-

*

*

-



Intl


245


-

*

*

-



554


-

*

*

-



WW


610


-

*

*

-



1,327


-

*

*

-



OPSUMIT




-














US


146


-

*

*

-



320


-

*

*

-



Intl


123


-

*

*

-



253


-

*

*

-



WW


269


-

*

*

-



573


-

*

*

-



TRACLEER




-














US


76


-

*

*

-



161


-

*

*

-



Intl


91


-

*

*

-



242


-

*

*

-



WW


167


-

*

*

-



403


-

*

*

-



UPTRAVI




-














US


117


-

*

*

-



238


-

*

*

-



Intl


13


-

*

*

-



25


-

*

*

-



WW


130


-

*

*

-



263


-

*

*

-



OTHER(6)




-














US


26


-

*

*

-



54


-

*

*

-



Intl


18


-

*

*

-



34


-

*

*

-



WW


44


-

*

*

-



88


-

*

*

-



CARDIOVASCULAR / METABOLISM / OTHER


















US


1,256


1,265

-0.7%

-0.7%

-



4,744


4,855

-2.3%

-2.3%

-



Intl


366


338

8.3%

3.2%

5.1%



1,543


1,541

0.1%

0.5%

-0.4%



WW


1,622


1,603

1.2%

0.1%

1.1%



6,287


6,396

-1.7%

-1.6%

-0.1%



XARELTO


















US


710


598

18.7%

18.7%

-



2,500


2,288

9.3%

9.3%

-



Intl


-


-

-

-

-



-


-

-

-

-



WW


710


598

18.7%

18.7%

-



2,500


2,288

9.3%

9.3%

-



INVOKANA / INVOKAMET


















US


221


334

-33.8%

-33.8%

-



944


1,273

-25.8%

-25.8%

-



Intl


46


37

24.3%

16.4%

7.9%



167


134

24.6%

23.7%

0.9%



WW


267


371

-28.0%

-28.8%

0.8%



1,111


1,407

-21.0%

-21.1%

0.1%



PROCRIT / EPREX


















US


164


186

-11.8%

-11.8%

-



675


767

-12.0%

-12.0%

-



Intl


68


73

-6.8%

-12.1%

5.3%



297


338

-12.1%

-13.0%

0.9%



WW


232


259

-10.4%

-11.9%

1.5%



972


1,105

-12.0%

-12.3%

0.3%



OTHER(6)


















US


161


147

9.5%

9.5%

-



625


527

18.6%

18.6%

-



Intl


252


228

10.5%

5.9%

4.6%



1,079


1,069

0.9%

1.9%

-1.0%



WW


413


375

10.1%

7.3%

2.8%



1,704


1,596

6.8%

7.5%

-0.7%



TOTAL PHARMACEUTICAL


















US


5,776


5,002

15.5%

15.5%

-



21,474


20,125

6.7%

6.7%

-



Intl


3,905


3,230

20.9%

15.5%

5.4%



14,782


13,339

10.8%

10.1%

0.7%



WW


$        9,681


$            8,232

17.6%

15.5%

2.1%



$             36,256


$             33,464

8.3%

8.0%

0.3%


































See footnotes at end of schedule










































































REPORTED SALES vs. PRIOR PERIOD ($MM)




FOURTH QUARTER


TWELVE MONTHS








% Change








% Change





MEDICAL DEVICES SEGMENT (2)


2017


2016

Reported

Operational (1)

Currency



2017


2016

Reported

Operational (1)

Currency



CARDIOVASCULAR


















US


$           286


$               247

15.8%

15.8%

-



$               1,071


$                  948

13.0%

13.0%

-



Intl


282


238

18.5%

15.6%

2.9%



1,025


901

13.8%

14.0%

-0.2%



WW


568


485

17.1%

15.7%

1.4%



2,096


1,849

13.4%

13.5%

-0.1%



DIABETES CARE


















US


130


191

-31.9%

-31.9%

-



612


739

-17.2%

-17.2%

-



Intl


260


271

-4.1%

-9.3%

5.2%



1,003


1,050

-4.5%

-5.8%

1.3%



WW


390


462

-15.6%

-18.7%

3.1%



1,615


1,789

-9.7%

-10.5%

0.8%



DIAGNOSTICS


















US


-


-

-

-

-



-


-

-

-

-



Intl


-


-

-

-

-



1


66

*

*

*



WW


-


-

-

-

-



1


66

*

*

*



ORTHOPAEDICS


















US 


1,389


1,422

-2.3%

-2.3%

-



5,481


5,521

-0.7%

-0.7%

-



Intl


950


965

-1.6%

-5.8%

4.2%



3,777


3,813

-0.9%

-1.6%

0.7%



WW


2,339


2,387

-2.0%

-3.7%

1.7%



9,258


9,334

-0.8%

-1.1%

0.3%



HIPS


















US


215


208

3.4%

3.4%

-



827


798

3.6%

3.6%

-



Intl


149


142

4.9%

0.4%

4.5%



567


563

0.7%

0.0%

0.7%



WW


364


350

4.0%

2.2%

1.8%



1,394


1,361

2.4%

2.1%

0.3%



KNEES


















US


246


247

-0.4%

-0.4%

-



948


943

0.5%

0.5%

-



Intl


151


148

2.0%

-2.5%

4.5%



575


581

-1.0%

-1.6%

0.6%



WW


397


395

0.5%

-1.2%

1.7%



1,523


1,524

-0.1%

-0.3%

0.2%



TRAUMA


















US


397


394

0.8%

0.8%

-



1,576


1,545

2.0%

2.0%

-



Intl


272


260

4.6%

0.4%

4.2%



1,040


1,024

1.6%

0.7%

0.9%



WW


669


654

2.3%

0.6%

1.7%



2,616


2,569

1.8%

1.5%

0.3%



SPINE & OTHER


















US


531


573

-7.3%

-7.3%

-



2,130


2,235

-4.7%

-4.7%

-



Intl


378


415

-8.9%

-13.0%

4.1%



1,595


1,645

-3.0%

-3.6%

0.6%



WW


909


988

-8.0%

-9.7%

1.7%



3,725


3,880

-4.0%

-4.2%

0.2%



SURGERY


















US


1,076


1,023

5.2%

5.2%

-



4,085


4,026

1.5%

1.5%

-



Intl


1,482


1,364

8.7%

5.4%

3.3%



5,474


5,270

3.9%

3.5%

0.4%



WW


2,558


2,387

7.2%

5.3%

1.9%



9,559


9,296

2.8%

2.6%

0.2%



ADVANCED


















US


430


393

9.4%

9.4%

-



1,620


1,524

6.3%

6.3%

-



Intl


593


515

15.1%

11.7%

3.4%



2,136


1,993

7.2%

7.0%

0.2%



WW


1,023


908

12.7%

10.8%

1.9%



3,756


3,517

6.8%

6.7%

0.1%



GENERAL


















US


452


415

8.9%

8.9%

-



1,728


1,669

3.5%

3.5%

-



Intl


718


687

4.5%

1.0%

3.5%



2,735


2,693

1.6%

1.2%

0.4%



WW


1,170


1,102

6.2%

4.0%

2.2%



4,463


4,362

2.3%

2.0%

0.3%



SPECIALTY


















US


194


215

-9.8%

-9.8%

-



737


833

-11.5%

-11.5%

-



Intl


171


162

5.6%

3.1%

2.5%



603


584

3.3%

2.4%

0.9%



WW


365


377

-3.2%

-4.3%

1.1%



1,340


1,417

-5.4%

-5.8%

0.4%



VISION CARE


















US


433


265

63.4%

63.4%

-



1,575


1,032

52.6%

52.6%

-



Intl


686


456

50.4%

48.2%

2.2%



2,488


1,753

41.9%

42.0%

-0.1%



WW


1,119


721

55.2%

53.8%

1.4%



4,063


2,785

45.9%

46.0%

-0.1%



CONTACT LENSES / OTHER


















US


290


265

9.4%

9.4%

-



1,122


1,032

8.7%

8.7%

-



Intl


510


456

11.8%

9.6%

2.2%



1,914


1,753

9.2%

9.3%

-0.1%



WW


800


721

11.0%

9.6%

1.4%



3,036


2,785

9.0%

9.1%

-0.1%



SURGICAL


















US


143


-

*

*

-



453


-

*

*

-



Intl


176


-

*

*

-



574


-

*

*

-



WW


319


-

*

*

-



1,027


-

*

*

-





















TOTAL MEDICAL DEVICES


















US


3,314


3,148

5.3%

5.3%

-



12,824


12,266

4.5%

4.5%

-



Intl


3,660


3,294

11.1%

7.5%

3.6%



13,768


12,853

7.1%

6.7%

0.4%



WW


$        6,974


6,442

8.3%

6.5%

1.8%



$             26,592


$             25,119

5.9%

5.7%

0.2%







































* Percentage greater than 100% or not meaningful


















(1) Operational growth excludes the effect of translational currency














(2) Unaudited


















(3) Prior year amounts have been reclassified to conform to current year product disclosure 














(4) Reported as U.S. sales


















(5) Actelion acquisition completed June 16, 2017


















(6) All non-PAH Actelion products were reclassified to Other within the Cardiovascular/Metabolisim/Other therapeutic area. See supplementary schedule.










 

 

Pharmaceutical Supplemental Schedule 






Prior quarter amounts have been reclassified to
conform to current quarter product disclosure  ($MM)








2017









Q2


Q3


PHARMACEUTICAL SEGMENT(1)






PULMONARY HYPERTENSION






US


37


371


Intl


48


261


WW


85


632


OTHER(2)






US


3


25


Intl


2


14


WW


5


39








CARDIOVASCULAR / METABOLISM / OTHER






US


1,214


1,179


Intl


391


406


WW


1,605


1,585


OTHER(3)






US


142


156


Intl


271


291


WW


413


447














(1) Unaudited






(2) All non-PAH Actelion products removed; Previously included All Other PAH & Non-PAH products. 

(3) Includes Actelion non-PAH products; Previously included in Pulmonary Hypertension Other.

 

 

 (PRNewsfoto/Johnson & Johnson)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/johnson--johnson-reports-2017-fourth-quarter-results-300586431.html

SOURCE Johnson & Johnson

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