Johnson & Johnson
JOHNSON & JOHNSON (Form: 8-K, Received: 04/18/2017 08:16:30)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported):
 
April 18, 2017
JNJLOGOA06A02A01A01A01A13.JPG
 
(Exact name of registrant as specified in its charter)
 
 
New Jersey
I-3215
22-1024240
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)


One Johnson & Johnson Plaza, New Brunswick, New Jersey  08933
 
(Address of Principal Executive Offices)
 (Zip Code)
 
Registrant's telephone number, including area code:
732-524-0400
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
               CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
               CFR 240.13e-4(c))
 
 
 
 





 





Item 2.02                      Results of Operations and Financial Condition
 
On  April 18, 2017 , Johnson & Johnson issued the attached press release announcing its sales and earnings for the first quarter ended April 2, 2017 .
 
Item 9.01            Financial Statements and Exhibits
 
Exhibit No.
 
Description of Exhibit
 
99.15
 
Press Release dated April 18, 2017 for the period ended April 2, 2017.
 
99.2O
 
Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the first quarter.
 
 






 
 
 


 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Johnson & Johnson
 
 
 
 (Registrant)
 
 
 
 
Date: April 18, 2017
By:
/s/ Ronald A. Kapusta
 
 
 
Ronald A. Kapusta
Controller
(Principal Accounting Officer)
 






Exhibit 99.15
`
Johnson & Johnson Reports 2017 First-Quarter Results:

2017 First-Quarter Sales of $17.8 Billion Increased 1.6% versus 2016
2017 First-Quarter EPS was $1.61
2017 Adjusted First-Quarter EPS of $1.83 Increased 5.8%*

Acquisition of Actelion Remains on Track to Close in Second Quarter


New Brunswick, N.J. (April 18, 2017) - Johnson & Johnson (NYSE: JNJ) today announced sales of $17.8 billion for the first quarter of 2017, an increase of 1.6% as compared to the first quarter of 2016. Operational sales results increased 2.0% and the negative impact of currency was 0.4%. Domestic sales increased 0.6%. International sales increased 2.8%, reflecting operational growth of 3.6% and a negative currency impact of 0.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.2%, domestic sales decreased 0.7% and international sales increased 3.4%. *
Net earnings and diluted earnings per share for the first quarter of 2017 were $4.4 billion and $1.61, respectively. First-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.4 billion. First-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.2 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.0 billion and adjusted diluted earnings per share were $1.83, representing increases of 3.8% and 5.8%, respectively, as compared to the same period in 2016. * On an operational basis, adjusted diluted earnings per share also increased 7.5%. * A reconciliation of non-GAAP financial measures is included as an accompanying schedule.
“Johnson & Johnson’s first-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year,” said Alex Gorsky, Chairman and Chief Executive Officer. “The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products. We look forward to the associates from Actelion joining the Johnson & Johnson Family of Companies.”
The Company is now including the estimated impact of the Actelion transaction in its financial guidance. As such, the Company increased its sales guidance for the full-year 2017 to $75.4 billion to $76.1 billion. Additionally, the Company increased its adjusted earnings guidance for full-year 2017 to $7.00 - $7.15 per share.*
Worldwide Consumer sales of $3.2 billion for the first quarter 2017 represented an increase of 1.0% versus the prior year, consisting of an operational increase of 0.8% and a positive impact from currency of 0.2%. Domestic sales increased 4.1%; international sales decreased 1.3%, which reflected an operational decrease of 1.6% and a positive currency impact of 0.3%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales decreased 2.3%, domestic sales decreased 2.9% and international sales decreased 1.9% * .





Worldwide operational results, excluding the net impact of acquisitions and divestitures, were negatively impacted by LISTERINE ® oral care products, baby care products, and wound care products, partially offset by growth in over-the-counter products, including domestic TYLENOL ® analgesics.
Worldwide Pharmaceutical sales of $8.2 billion for the first quarter 2017 represented an increase of 0.8% versus the prior year with an operational increase of 1.4% and a negative impact from currency of 0.6%. Domestic sales decreased 1.3%; international sales increased 4.1%, which reflected an operational increase of 5.6% and a negative currency impact of 1.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.2%, domestic sales decreased 0.4% and international sales increased 6.1%. *
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 and IMBRUVICA ® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer. Additional contributors to operational sales growth included STELARA ® (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, and INVEGA ® SUSTENNA ® /XEPLION ® /TRINZA ® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Sales growth was negatively impacted by a positive adjustment of rebate accruals in the first quarter of 2016, which did not occur to the same degree in the first quarter of 2017.
During the quarter, the Company announced a definitive agreement to acquire Actelion Ltd., a leading biopharmaceutical company, for approximately $30 billion. The public tender offer for Actelion has been declared successful based on the number of shares tendered and regulatory approval has been obtained in six of seven jurisdictions in which the company filed for such approval, with antitrust approval from the European Commission pending. The transaction is expected to close in the second quarter of 2017, subject to the satisfaction of remaining closing conditions.
Also in the quarter, the Committee for Medicinal Products for Human Use of the European Medicines Agency issued a positive opinion recommending broadening the existing marketing authorization for DARZALEX ® (daratumumab) for use in combination with lenalidomide and dexamethasone; or bortezomib and dexamethasone, for the treatment of multiple myeloma in patients who have received at least one prior therapy. A supplemental New Drug Application was submitted to the U.S. Food and Drug Administration for IMBRUVICA ® (ibrutinib) for the treatment of chronic Graft-Versus-Host Disease after failure of one or more lines of systemic therapy.
In April, subsequent to the quarter, a marketing authorization application was submitted to the European Medicines Agency for ZYTIGA ® (abiraterone acetate) to expand the existing indication to include treatment of men with newly diagnosed high-risk metastatic hormone sensitive prostate cancer.
Worldwide Medical Devices sales of $6.3 billion for the first quarter 2017 represented an increase of 3.0% versus the prior year consisting of an operational increase of 3.4% and a negative currency impact of 0.4%. Domestic sales increased 2.2%; international sales increased 3.8%, which reflected an operational increase of 4.7% and a negative currency impact of 0.9%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.7%, domestic sales decreased 0.2% and international sales increased 3.7%. *





Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business; ACUVUE ® contact lenses in the Vision Care business and endocutters in the Advanced Surgery business, partially offset by declines in the Diabetes Care business.
During the quarter, the company completed the acquisition of Abbott Medical Optics, a wholly-owned subsidiary of Abbott and global leader in ophthalmic surgery, for approximately $4.3 billion.
Additionally, the acquisitions of Megadyne Medical Products, Inc., a privately held medical device company that develops, manufactures and markets electrosurgical tools, and Torax Medical Inc., a privately held medical device company that manufactures and markets the LINX™ Reflux Management System for the surgical treatment of gastroesophageal reflux disease, were completed.
In April, subsequent to the quarter, the acquisition of Neuravi Limited, a privately held medical device company that develops and markets medical devices for neurointerventional therapy, was completed.

About Johnson & Johnson
Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 130,800 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.
* 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.
          
     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 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; market conditions and the possibility that the on-going share repurchase program may be delayed, suspended or discontinued; the impact of business combinations and divestitures, including the planned acquisition of Actelion Ltd.; significant adverse litigation or government action, including related to product liability claims; 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 or financial distress 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 in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” 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.




Exhibit 99.2O


Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statement of Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; in Millions Except Per Share Figures)
FIRST QUARTER
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
Percent
 
 
 
Percent
 
 
 
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $ 17,766
 
         100.0
 
 $ 17,482
 
         100.0
 
1.6
Cost of products sold
         5,386
 
           30.3
 
         5,329
 
           30.5
 
1.1
Selling, marketing and administrative expenses
         4,737
 
           26.6
 
         4,688
 
           26.8
 
1.0
Research and development expense
         2,060
 
           11.6
 
         2,013
 
           11.5
 
2.3
Interest (income) expense, net
              83
 
             0.5
 
              77
 
             0.4
 
 
Other (income) expense, net
           (160)
 
            (0.9)
 
             (39)
 
            (0.2)
 
 
Restructuring
              85
 
             0.5
 
            120
 
             0.7
 
 
Earnings before provision for taxes on income
         5,575
 
           31.4
 
         5,294
 
           30.3
 
5.3
Provision for taxes on income
         1,153
 
             6.5
 
            837
 
             4.8
 
37.8
Net earnings
         4,422
 
           24.9
 
         4,457
 
           25.5
 
(0.8)
 
 
 
 
 
 
 
 
 
 
Net earnings per share (Diluted)
 $ 1.61
 
 
 
 $ 1.59
 
 
 
1.3
 
 
 
 
 
 
 
 
 
 
Average shares outstanding (Diluted)
2,754.5
 
 
 
2,803.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
20.7
%
 
 
15.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings before provision for taxes and net earnings (1) (A)
 
 
 
 
 
 
 
Earnings before provision for taxes on income
 $ 6,103
 
34.4
 
 $ 5,801
 
33.2
 
5.2
Net earnings
 $ 5,038
 
28.4
 
 $ 4,854
 
27.8
 
3.8
Net earnings per share (Diluted)
 $ 1.83
 
 
 
 $ 1.73
 
 
 
5.8
Effective tax rate
17.5
%
 
 
16.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  See Reconciliation of Non-GAAP Financial Measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)   NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.












Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
 
FIRST QUARTER
 
 
 
 
 
 
Percent Change
 
 
2017
 
2016
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
 
segment of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
 
    U.S.
 
$
1,414

 
1,358

 
              4.1
%
              4.1
 

    International
 
1,814

 
1,837

 
            (1.3)
 
            (1.6)
 
              0.3

 
 
3,228

   
3,195

 
              1.0
 
              0.8
 
              0.2

 
 
 
 
 
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
 
    U.S.
 
4,872

 
4,937

 
            (1.3)
 
            (1.3)
 

    International
 
3,373

 
3,241

 
              4.1
 
              5.6
 
            (1.5)

 
 
8,245

   
8,178

 
              0.8
 
              1.4
 
            (0.6)

 
 
 
 
 
 
 
 
 
 
 
Medical Devices
 
 
 
 
 
 
 
 
 
 
    U.S.
 
3,092

   
3,026

 
              2.2
 
              2.2
 

    International
 
3,201

 
3,083

 
              3.8
 
              4.7
 
            (0.9)

 
 
6,293

   
6,109

 
3.0
 
              3.4
 
            (0.4)

 
 
 
 
 
 
 
 
 
 
 
U.S.
 
9,378

 
9,321

 
              0.6
 
              0.6
 

International
 
8,388

 
8,161

 
              2.8
 
              3.6
 
            (0.8)

Worldwide
 
$
17,766

 
17,482

 
              1.6
%
              2.0
 
            (0.4)































Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
 
FIRST QUARTER
 
 
 
 
 
 
Percent Change
 
 
2017
 
2016
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
 
geographic area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
$
9,378

 
9,321

 
0.6

%
0.6

 

 
 
 
 
 
 
 
 
 
 
 
Europe
 
3,858

 
3,847

 
0.3

 
4.2

 
(3.9
)
Western Hemisphere excluding U.S.
 
1,454

 
1,331

 
9.2

 
2.5

 
6.7

Asia-Pacific, Africa
 
3,076

 
2,983

 
3.1

 
3.4

 
(0.3
)
International
 
8,388

 
8,161

 
2.8

 
3.6

 
(0.8
)
 
 
  
 
 
 
  
 
  
 
  
Worldwide
 
$
17,766

 
17,482

 
1.6

%
2.0

 
(0.4
)














Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First Quarter
 
% Incr. /
 
(Dollars in Millions Except Per Share Data)
 
2017
 
2016
 
(Decr.)
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as reported
 
 $ 5,575

 
         5,294

 
             5.3
%
 
 
 
 
 
 
 
 
Intangible asset amortization expense
 
            329

 
            282

 
 
 
 
 
 
 
 
 
 
 
Restructuring/Other  (1)
 
            161

 
            137

 
 
 
 
 
 
 
 
 
 
 
Litigation expense, net
 

 
              66

 
 
 
 
 
 
 
 
 
 
 
AMO acquisition related cost
 
              38

 

 
 
 
 
 
 
 
 
 
 
 
Other
 

 
              22

 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as adjusted
 
 $ 6,103

 
         5,801

 
             5.2
%
 
 
 
 
 
 
 
 
Net Earnings - as reported
 
 $ 4,422

 
         4,457

 
            (0.8)
%
 
 
 
 
 
 
 
 
Intangible asset amortization expense
 
            244

 
            205

 
 
 
 
 
 
 
 
 
 
 
Restructuring/Other
 
            121

 
            120

 
 
 
 
 
 
 
 
 
 
 
Litigation expense, net
 

 
              56

 
 
 
 
 
 
 
 
 
 
 
AMO acquisition related cost
 
            251

 

 
 
 
 
 
 
 
 
 
 
 
Other
 

 
              16

 
 
 
 
 
 
 
 
 
 
 
Net Earnings - as adjusted
 
 $ 5,038

 
         4,854

 
             3.8
%
 
 
 
 
 
 
 
 
Diluted Net Earnings per share - as reported
 
 $ 1.61

 
           1.59

 
             1.3
%
 
 
 
 
 
 
 
 
Intangible asset amortization expense
 
           0.09

 
           0.07

 
 
 
 
 
 
 
 
 
 
 
Restructuring/Other
 
           0.04

 
           0.04

 
 
 
 
 
 
 
 
 
 
 
Litigation expense, net
 

 
           0.02

 
 
 
 
 
 
 
 
 
 
 
AMO acquisition related cost
 
           0.09

 

 
 
 
 
 
 
 
 
 
 
 
Other
 

 
           0.01

 
 
 
 
 
 
 
 
 
 
 
Diluted Net Earnings per share - as adjusted
 
 $ 1.83

 
           1.73

 
             5.8
%
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates
 
 
   
           1.77

 
 
 
 
 
 
 
 
 
 
 
Impact of currency at 2016 foreign currency exchange rates
 
           0.03

   
          (0.04)

 
 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates
 
 $ 1.86

   
           1.73

   
             7.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  Includes $4M recorded in cost of products sold and $72M recorded in other (income) expense in the first quarter 2017 and $17M recorded in cost of products sold in the first quarter 2016.







Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operational Sales Growth Excluding Acquisitions and Divestitures   (A)
 FIRST QUARTER 2017 ACTUAL vs. 2016 ACTUAL
 
 Segments
 
 
 
 
 
 
 
 
 
 
 
 Consumer
 
 Pharmaceutical
 
 Medical Devices
 
 Total
 
 
Operational % (1)
 WW As Reported:
 
0.8%
 
1.4%
 
3.4%
 
2.0%
 U.S.
 
4.1%
 
(1.3)%
 
2.2%
 
0.6%
 International
 
(1.6)%
 
5.6%
 
4.7%
 
3.6%
 
 
 
 
 
 
 
 
 
Beauty
 
 
 
 
 
 
 
 
Vogue
 
(3.0)
 
 
 
 
 
(0.6)
 U.S.
 
(6.3)
 
 
 
 
 
(0.9)
 International
 
(0.7)
 
 
 
 
 
(0.1)
 
 
 
 
 
 
 
 
 
Other Neuroscience
 
 
 
 
 
 
 
 
Controlled Substance Raw Material and API Business
 
 
 
0.8
 
 
 
0.4
 U.S.
 
 
 
0.9
 
 
 
0.5
 International
 
 
 
0.5
 
 
 
0.2
 
 
 
 
 
 
 
 
 
Diagnostics
 
 
 
 
 
 
 
 
Ortho-Clinical Diagnostics
 
 
 
 
 
0.5
 
0.2
 U.S.
 
 
 
 
 
0.0
 
0.0
 International
 
 
 
 
 
1.0
 
0.4
 
 
 
 
 
 
 
 
 
Vision Care
 
 
 
 
 
 
 
 
Abbott Medical Optics
 
 
 
 
 
(2.0)
 
(0.7)
 U.S.
 
 
 
 
 
(1.7)
 
(0.6)
 International
 
 
 
 
 
(2.3)
 
(0.9)
 
 
 
 
 
 
 
 
 
All Other Acquisitions and Divestitures
 
(0.1)
 
 
 
(0.2)
 
(0.1)
 U.S.
 
(0.7)
 
 
 
(0.7)
 
(0.3)
 International
 
0.4
 
 
 
0.3
 
0.2
 
 
 
 
 
 
 
 
 
WW Ops excluding Acquisitions and Divestitures
 
(2.3)%
 
2.2%
 
1.7%
 
1.2%
 U.S.
 
(2.9)%
 
(0.4)%
 
(0.2)%
 
(0.7)%
 International
 
(1.9)%
 
6.1%
 
3.7%
 
3.4%
 
 
 
 
 
 
 
 
 
(1)  Operational growth excludes the effect of translational currency
 
 
 
 
 
 
 
 
 
 
 
(A)   NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions and divestitures" is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.






Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
FIRST QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational  (1)
Currency

CONSUMER SEGMENT  (2) (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BABY CARE
 
 
 
 
 
 
 
 
 
US
 
$
113

 
121

 
(6.6
)%
(6.6
)%
 %
Intl
 
 
342

 
362

 
(5.5
)
(6.1
)
0.6

WW
 
 
455

 
483

 
(5.8
)
(6.3
)
0.5

 
 
 
 
 
 
 
 
 
 
BEAUTY
 
 
 
 
 
 
 
 
 
US
 
 
567

 
484

 
17.1

17.1


Intl
 
 
414

 
395

 
4.8

5.0

(0.2
)
WW
 
 
981

 
879

 
11.6

11.7

(0.1
)
 
 
 
 
 
 
 
 
 
 
ORAL CARE
 
 
 
 
 
 
 
 
 
US
 
 
156

 
170

 
(8.2
)
(8.2
)

Intl
 
 
206

 
215

 
(4.2
)
(4.5
)
0.3

WW
 
 
362

 
385

 
(6.0
)
(6.2
)
0.2

 
 
 
 
 
 
 
 
 
 
OTC
 
 
 
 
 
 
 
 
 
US
 
 
477

 
466

 
2.4

2.4


Intl
 
 
536

 
533

 
0.6

0.7

(0.1
)
WW
 
 
1,013

 
999

 
1.4

1.5

(0.1
)
 
 
 
 
 
 
 
 
 
 
WOMEN'S HEALTH
 
 
 
 
 
 
 
 
 
US
 
 
3

 
6

 
(50.0
)
(50.0
)

Intl
 
 
239

 
245

 
(2.4
)
(4.2
)
1.8

WW
 
 
242

 
251

 
(3.6
)
(5.3
)
1.7

 
 
 
 
 
 
 
 
 
 
WOUND CARE/OTHER
 
 
 
 
 
 
 
 
 
US
 
 
98

 
111

 
(11.7
)
(11.7
)

Intl
 
 
77

 
87

 
(11.5
)
(12.3
)
0.8

WW
 
 
175

 
198

 
(11.6
)
(11.9
)
0.3

 
 
 
 
 
 
 
 
 
 
TOTAL CONSUMER
 
 
 
 
 
 
 
 
 
US
 
 
1,414

 
1,358

 
4.1

4.1


Intl
 
 
1,814

 
1,837

 
(1.3
)
(1.6
)
0.3

WW
 
$
3,228

 
3,195

 
1.0
 %
0.8
 %
0.2
 %
 
 
 
 
 
 
 
 
 
 
See footnotes at end of schedule
 
 
 
 
 
 
 
 
 






Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
FIRST QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational  (1)
Currency

PHARMACEUTICAL SEGMENT   (2) (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMMUNOLOGY
 
 
 
 
 
 
 
 
 
US
 
$
2,123

 
2,171

 
(2.2
)%
(2.2
)%
 %
Intl
 
 
807

 
739

 
9.2

9.0

0.2

WW
 
 
2,930

 
2,910

 
0.7

0.6

0.1

       REMICADE
 
 
 
 
 
 
 
 
 
     US
 
 
1,182

 
1,211
 
(2.4
)
(2.4
)

     US Exports  (4)
 
 
165

 
233

 
(29.2
)
(29.2
)

     Intl
 
 
325

 
335

 
(3.0
)
(4.8
)
1.8

     WW
 
 
1,672

 
1,779

 
(6.0
)
(6.3
)
0.3

      SIMPONI / SIMPONI ARIA
 
 
 
 
 
 
 
 
 
     US
 
 
229

 
216

 
6.0

6.0


     Intl
 
 
199

 
174

 
14.4

13.4

1.0

     WW
 
 
428

 
390

 
9.7

9.2

0.5

      STELARA
 
 
 
 
 
 
 
 
 
     US
 
 
547

 
511

 
7.0

7.0


     Intl
 
 
276

 
224

 
23.2

26.1

(2.9
)
     WW
 
 
823

 
735

 
12.0

12.9

(0.9
)
      OTHER IMMUNOLOGY
 
 
 
 
 
 
 
 
 
     US
 
 

 

 



     Intl
 
 
7

 
6

 
16.7

12.1

4.6

     WW
 
 
7

 
6

 
16.7

12.1

4.6

 
 
 
 
 
 
 
 
 
 
INFECTIOUS DISEASES
 
 
 
 
 
 
 
 
 
US
 
 
326

 
358

 
(8.9
)
(8.9
)

Intl
 
 
423

 
418

 
1.2

2.8

(1.6
)
WW
 
 
749

 
776

 
(3.5
)
(2.6
)
(0.9
)
      EDURANT / RILPIVIRINE
 
 
 
 
 
 
 
 
 
     US
 
 
12

 
11

 
9.1

9.1


     Intl
 
 
137

 
108

 
26.9

30.4

(3.5
)
     WW
 
 
149

 
119

 
25.2

28.3

(3.1
)
      PREZISTA / PREZCOBIX / REZOLSTA
 
 
 
 
 
 
 
 
 
     US
 
 
259

 
277

 
(6.5
)
(6.5
)

     Intl
 
 
171

 
175

 
(2.3
)
0.2

(2.5
)
     WW
 
 
430

 
452

 
(4.9
)
(3.9
)
(1.0
)
      OTHER INFECTIOUS DISEASES
 
 
 
 
 
 
 
 
 
     US
 
 
55

 
70

 
(21.4
)
(21.4
)

     Intl
 
 
115

 
135

 
(14.8
)
(15.9
)
1.1

     WW
 
 
170

 
205

 
(17.1
)
(17.8
)
0.7

 
 
 
 
 
 
 
 
 
 
See footnotes at end of schedule
 
 
 
 
 
 
 
 
 





Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
FIRST QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational (1)
Currency

PHARMACEUTICAL SEGMENT   (2) (3) (Continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NEUROSCIENCE
 
 
 
 
 
 
 
 
 
US
 
$
664

 
680

 
(2.4
)%
(2.4
)%
 %
Intl
 
 
833

 
869

 
(4.1
)
(2.9
)
(1.2
)
WW
 
 
1,497

 
1,549

 
(3.4
)
(2.7
)
(0.7
)
      CONCERTA / METHYLPHENIDATE
 
 
 
 
 
 
 
 
 
     US
 
 
108

 
134

 
(19.4
)
(19.4
)

     Intl
 
 
101

 
97

 
4.1

4.2

(0.1
)
     WW
 
 
209

 
231

 
(9.5
)
(9.5
)
0.0

      INVEGA SUSTENNA / XEPLION / TRINZA
 
 
 
 
 
 
 
     US
 
 
372

 
305

 
22.0

22.0


     Intl
 
 
232

 
208

 
11.5

14.3

(2.8
)
     WW
 
 
604

 
513

 
17.7

18.8

(1.1
)
       RISPERDAL CONSTA
 
 
 
 
 
 
 
 
 
     US
 
 
95

 
95

 
0.0

0.0


     Intl
 
 
112

 
136

 
(17.6
)
(15.7
)
(1.9
)
     WW
 
 
207

 
231

 
(10.4
)
(9.3
)
(1.1
)
      OTHER NEUROSCIENCE
 
 
 
 
 
 
 
 
 
     US
 
 
89

 
146

 
(39.0
)
(39.0
)

     Intl
 
 
388

 
428

 
(9.3
)
(8.9
)
(0.4
)
     WW
 
 
477

 
574

 
(16.9
)
(16.6
)
(0.3
)
 
 
 
 
 
 
 
 
 
 
ONCOLOGY
 
 
 
 
 
 
 
 
 
US
 
 
664

 
549

 
20.9

20.9


Intl
 
 
930

 
805

 
15.5

18.3

(2.8
)
WW
 
 
1,594

 
1,354

 
17.7

19.3

(1.6
)
      DARZALEX
 
 
 
 
 
 
 
 
 
     US
 
 
201

 
101

 
99.0

99.0


     Intl
 
 
54

 

 
*

*


     WW
 
 
255

 
101

 
*

*


      IMBRUVICA
 
 
 
 
 
 
 
 
 
     US
 
 
190

 
132

 
43.9

43.9


     Intl
 
 
219

 
129

 
69.8

73.7

(3.9
)
     WW
 
 
409

 
261

 
56.7

58.6

(1.9
)
      VELCADE
 
 
 
 
 
 
 
 
 
     US
 
 

 

 



     Intl
 
 
280

 
304

 
(7.9
)
(5.0
)
(2.9
)
     WW
 
 
280

 
304

 
(7.9
)
(5.0
)
(2.9
)
      ZYTIGA
 
 
 
 
 
 
 
 
 
     US
 
 
233

 
272

 
(14.3
)
(14.3
)

     Intl
 
 
290

 
286

 
1.4

2.7

(1.3
)
     WW
 
 
523

 
558

 
(6.3
)
(5.6
)
(0.7
)
      OTHER ONCOLOGY
 
 
 
 
 
 
 
 
 
     US
 
 
40

 
44

 
(9.1
)
(9.1
)

     Intl
 
 
87

 
86

 
1.2

4.1

(2.9
)
     WW
 
 
127

 
130

 
(2.3
)
(0.4
)
(1.9
)
See footnotes at end of schedule
 
 
 
 
 
 
 
 
 




Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
FIRST QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT   (2) (3) (Continued)
 
 
 
 
 
 
 
 
 
 
 
 
CARDIOVASCULAR / METABOLISM / OTHER
 
 
 
 
 
 
US
 
$
1,095

 
1,179

 
(7.1
)%
(7.1
)%
 %
Intl
 
 
380

 
410

 
(7.3
)
(4.5
)
(2.8
)
WW
 
 
1,475

 
1,589

 
(7.2
)
(6.5
)
(0.7
)
      XARELTO
 
 
 
 
 
 
 
 
 
     US
 
 
513

 
567

 
(9.5
)
(9.5
)

     Intl
 
 

 

 



     WW
 
 
513

 
567

 
(9.5
)
(9.5
)

      INVOKANA / INVOKAMET
 
 
 
 
 
 
 
 
 
     US
 
 
247

 
297

 
(16.8
)
(16.8
)

     Intl
 
 
37

 
28

 
32.1

32.8

(0.7
)
     WW
 
 
284

 
325

 
(12.6
)
(12.5
)
(0.1
)
       PROCRIT / EPREX
 
 
 
 
 
 
 
 
 
     US
 
 
169

 
183

 
(7.7
)
(7.7
)

     Intl
 
 
78

 
91

 
(14.3
)
(13.1
)
(1.2
)
     WW
 
 
247

 
274

 
(9.9
)
(9.5
)
(0.4
)
      OTHER
 
 
 
 
 
 
 
 
 
     US
 
 
166

 
132

 
25.8

25.8


     Intl
 
 
265

 
291

 
(8.9
)
(5.4
)
(3.5
)
     WW
 
 
431

 
423

 
1.9

4.3

(2.4
)
 
 
 
 
 
 
 
 
 
 
TOTAL PHARMACEUTICAL
 
 
 
 
 
 
 
 
 
US
 
 
4,872

 
4,937

 
(1.3
)
(1.3
)

Intl
 
 
3,373

 
3,241

 
4.1

5.6

(1.5
)
WW
 
$
8,245

 
8,178

 
0.8
 %
1.4
 %
(0.6
)%
 
 
 
 
 
 
 
 
 
 
See footnotes at end of schedule
 
 
 
 
 
 
 





Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
FIRST QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational (1)
Currency

MEDICAL DEVICES SEGMENT (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
CARDIOVASCULAR
 
 
 
 
 
 
US
 
$
259

 
231

 
12.1
 %
12.1
 %
 %
Intl
 
 
240

 
212

 
13.2

14.2

(1.0
)
WW
 
 
499

 
443

 
12.6

13.1

(0.5
)
 
 
 
 
 
 
 
 
 
 
DIABETES CARE
 
 
 
 
 
 
 
 
 
US
 
 
154

 
180

 
(14.4
)
(14.4
)

Intl
 
 
245

 
249

 
(1.6
)
(0.8
)
(0.8
)
WW
 
 
399