Johnson & Johnson
JOHNSON & JOHNSON (Form: 8-K, Received: 01/23/2018 07:17:21)
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):
 
January 23, 2018
JNJLOGOA06A02A01A01A01A16.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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨




 
 
 
 





 
Item 2.02                      Results of Operations and Financial Condition
 
On  January 23, 2018 , Johnson & Johnson issued the attached press release announcing its sales and earnings for the fourth quarter and full year ended December 31, 2017 .
 
Item 9.01            Financial Statements and Exhibits

(d)     Exhibits. 
 
Exhibit No.
 
Description of Exhibit
 
 
Press Release dated January 23, 2018 for the period ended December 31, 2017.
 
 
Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the fourth quarter and full year.
 
 




 
 
 


 

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: January 23, 2018
By:
/s/ Ronald A. Kapusta
 
 
 
Ronald A. Kapusta
Controller
(Principal Accounting Officer)
 





Exhibit 99.15
`
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) - 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.




Exhibit 99.2O


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) (A)
 
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
 
 
 
 
 
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) (A)
 
 
 
 
 
 
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
FOURTH QUARTER
 
 
 
 
 
Percent Change
 
2017
 
2016
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
segment of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
    U.S.
 $ 1,379
 
      1,387
 
  (0.6)
%
          (0.6)
 
    International
      2,161
 
      2,045
 
    5.7
 
            1.2
 
         4.5
 
      3,540
   
      3,432
 
    3.1
 
            0.4
 
         2.7
 
 
 
 
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
    U.S.
      5,776
 
      5,002
 
  15.5
 
          15.5
 
    International
      3,905
 
      3,230
 
  20.9
 
          15.5
 
         5.4
 
      9,681
   
      8,232
 
  17.6
 
          15.5
 
         2.1
 
 
 
 
 
 
 
 
 
 
Medical Devices
 
 
 
 
 
 
 
 
 
    U.S.
      3,314
   
      3,148
 
    5.3
 
            5.3
 
    International
      3,660
 
      3,294
 
  11.1
 
            7.5
 
         3.6
 
      6,974
   
      6,442
 
8.3
 
            6.5
 
         1.8
 
 
 
 
 
 
 
 
 
 
U.S.
    10,469
 
      9,537
 
    9.8
 
            9.8
 
International
      9,726
 
      8,569
 
  13.5
 
            9.0
 
         4.5
Worldwide
 $ 20,195
 
    18,106
 
  11.5
%
            9.4
 
         2.1








Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
TWELVE MONTHS
 
 
 
 
 
Percent Change
 
2017
 
2016
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
segment of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
    U.S.
 $ 5,565
 
      5,420
 
    2.7
%
            2.7
 
    International
      8,037
 
      7,887
 
    1.9
 
            0.4
 
         1.5
 
    13,602
   
    13,307
 
    2.2
 
            1.3
 
         0.9
 
 
 
 
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
    U.S.
    21,474
 
    20,125
 
    6.7
 
            6.7
 
    International
    14,782
 
    13,339
 
  10.8
 
          10.1
 
         0.7
 
    36,256
   
    33,464
 
    8.3
 
            8.0
 
         0.3
 
 
 
 
 
 
 
 
 
 
Medical Devices
 
 
 
 
 
 
 
 
 
    U.S.
    12,824
   
    12,266
 
    4.5
 
            4.5
 
    International
    13,768
 
    12,853
 
    7.1
 
            6.7
 
         0.4
 
    26,592
   
    25,119
 
    5.9
 
            5.7
 
         0.2
 
 
 
 
 
 
 
 
 
 
U.S.
    39,863
 
    37,811
 
    5.4
 
            5.4
 
International
    36,587
 
    34,079
 
    7.4
 
            6.6
 
         0.8
Worldwide
 $ 76,450
 
    71,890
 
    6.3
%
            6.0
 
         0.3






























Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
FOURTH QUARTER
 
 
 
 
 
Percent Change
 
2017
 
2016
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
geographic area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 $ 10,469
 
      9,537
 
    9.8
%
            9.8
 
 
 
 
 
 
 
 
 
 
 
Europe
      4,728
 
      4,001
 
18.2
 
          10.1
 
         8.1
Western Hemisphere excluding U.S.
      1,519
 
      1,465
 
    3.7
 
            1.8
 
         1.9
Asia-Pacific, Africa
      3,479
 
      3,103
 
  12.1
 
          11.1
 
         1.0
International
      9,726
 
      8,569
 
  13.5
 
            9.0
 
         4.5
 
  
 
  
 
  
 
  
 
  
Worldwide
 $ 20,195
 
    18,106
 
  11.5
%
            9.4
 
         2.1














Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
TWELVE MONTHS
 
 
 
 
 
Percent Change
 
2017
 
2016
 
Total
 
Operations
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
geographic area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 $ 39,863
 
    37,811
 
  5.4
%
   5.4
 
 
 
 
 
 
 
 
 
 
 
Europe
    17,126
 
    15,770
 
  8.6
 
   7.2
 
         1.4
Western Hemisphere excluding U.S.
      6,041
 
      5,734
 
  5.4
 
   2.8
 
         2.6
Asia-Pacific, Africa
    13,420
 
    12,575
 
  6.7
 
   7.5
 
        (0.8)
International
    36,587
 
    34,079
 
  7.4
 
   6.6
 
         0.8
 
  
 
  
 
  
 
  
 
  
Worldwide
 $ 76,450
 
    71,890
 
  6.3
%
   6.0
 
         0.3








Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter
 
% Incr. /
 
(Dollars in Millions Except Per Share Data)
 
2017
 
2016
 
(Decr.)
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as reported
 
 $ 2,560

 
  4,324
 
    (40.8)

%
Intangible asset amortization expense
 
       1,077

 
     344
 
 
 
Litigation expense, net
 
          645

 
       96
 
 
 
Actelion acquisition related cost
 
          217

 
 
 
 
Restructuring/Other (1)
 
          284

 
     298
 
 
 
In-process research and development
 
          408

 
 
 
 
Diabetes asset impairment
 
            35

 
 
 
 
AMO acquisition related cost
 
            25

 
 
 
 
DePuy ASR TM  Hip program
 

 
         9
 
 
 
Other
 

 
       32
 
 
 
Earnings before provision for taxes on income - as adjusted
 
 $ 5,251

 
  5,103
 
        2.9

 %
 
 
 
 
 
 
 
 
Net Earnings/(Loss) - as reported
 
 $ (10,713)

 
  3,814
 
  (380.9)

%
Impact of tax legislation
 
     13,556

   
   
 
 
Intangible asset amortization expense
 
          926

 
     252
 
 
 
Litigation expense, net
 
          506

   
       80
   
 
 
Actelion acquisition related cost
 
          313

 
 
 
 
Restructuring/Other
 
          237

 
     251
 
 
 
In-process research and development
 
          266

 
 
 
 
Diabetes asset impairment
 
         (116)

 
 
 
 
AMO acquisition related cost
 
         (198)

 
 
 
 
DePuy ASR TM  Hip program
 

 
         7
 
 
 
Other
 

 
     (43)
 
 
 
Net Earnings - as adjusted
 
 $ 4,777

 
  4,361
 
        9.5

 %
 
 
 
 
 
 
 
 
Diluted Net Earnings/(Loss) per share - as reported
 
$ (3.99)

 
    1.38
 
(389.1
)
%
Dilutive impact of shares excluded due to net loss position
 
0.08

 
 
 
 
Impact of tax legislation
 
         4.94

 
 
 
 
Intangible asset amortization expense
 
         0.34

 
    0.09
 
 
 
Litigation expense, net
 
         0.19

 
    0.03
 
 
 
Actelion acquisition related cost
 
         0.11

 
 
 
 
Restructuring/Other
 
         0.08

 
    0.09
 
 
 
In-process research and development
 
         0.10

 
 
 
 
Diabetes asset impairment
 
        (0.04)

 
 
 
 
AMO acquisition related cost
 
        (0.07)

 
 
 
 
DePuy ASR TM  Hip program
 

 
 
 
 
Other
 

 
  (0.01)
 
 
 
Diluted Net Earnings per share - as adjusted
 
 $ 1.74

 
    1.58
 
      10.1

 %
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates
 
 
 
    1.59
 
 
 
 
 
 
 
 
 
 
 
Impact of currency at 2016 foreign currency exchange rates
 
        (0.07)

 
  (0.01)
 
 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates
 
 $ 1.67

 
    1.58
 
        5.7

 %
 
 
 
 
 
 
 
 
(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.








Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months
 
% Incr. /
 
 
(Dollars in Millions Except Per Share Data)
 
2017
 
2016
 
(Decr.)
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as reported
 
 $ 17,673
 
  19,803

 
    (10.8)
%
 
Intangible asset amortization expense
 
      2,963
 
    1,271

 
 
 
 
Litigation expense, net
 
      1,256
 
       817

 
 
 
 
Actelion acquisition related cost
 
         797
 

 
 
 
 
Restructuring/Other  (1)
 
         760
 
       685

 
 
 
 
In-process research and development
 
         408
 
         29

 
 
 
 
Diabetes asset impairment
 
         215
 

 
 
 
 
AMO acquisition related cost
 
         140
 

 
 
 
 
DePuy ASR TM  Hip program
 
 
           9

 
 
 
 
Other
 
 
       145

 
 
 
 
Earnings before provision for taxes on income - as adjusted
 
 $ 24,212
 
  22,759

 
        6.4
 %
 
 
 
 
 
 
 
 
 
 
Net Earnings/(Loss) - as reported
 
 $ 1,300
 
  16,540

 
    (92.1)
%
 
Impact of tax legislation
 
    13,556
 

 
 
 
 
Intangible asset amortization expense
 
      2,481
 
       931

 
 
 
 
Litigation expense, net
 
         955
 
       675

 
 
 
 
Actelion acquisition related cost
 
         767
 

 
 
 
 
Restructuring/Other
 
         595
 
       544

 
 
 
 
In-process research and development
 
         266
 
         23

 
 
 
 
Diabetes asset impairment
 
             4
 

 
 
 
 
AMO acquisition related cost
 
         116
 

 
 
 
 
DePuy ASR TM  Hip program
 
 
           7

 
 
 
 
Other
 
 
         44

 
 
 
 
Net Earnings - as adjusted
 
 $ 20,040
 
  18,764

 
        6.8
 %
 
 
 
 
 
 
 
 
 
 
Diluted Net Earnings/(Loss) per share - as reported
 
 $ 0.47
 
      5.93

 
    (92.1)
%
 
Dilutive impact of shares excluded due to loss position
 
 

 
 
 
 
Impact of tax legislation
 
        4.94
 

 
 
 
 
Intangible asset amortization expense
 
        0.90
 
      0.33

 
 
 
 
Litigation expense, net
 
        0.35
 
      0.24

 
 
 
 
Actelion acquisition related cost
 
        0.28
 

 
 
 
 
Restructuring/Other
 
        0.22
 
      0.20

 
 
 
 
In-process research and development
 
        0.10
 
      0.01

 
 
 
 
Diabetes asset impairment
 
 

 
 
 
 
AMO acquisition related cost
 
        0.04
 

 
 
 
 
DePuy ASR TM  Hip program
 
 

 
 
 
 
Other
 
 
      0.02

 
 
 
 
Diluted Net Earnings per share - as adjusted
 
 $ 7.30
 
      6.73

 
        8.5
 %
 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates
 
 
 
      6.78

 
 
 
 
 
 
 
 
 
 
 
 
 
Impact of currency at 2016 foreign currency exchange rates
 
      (0.06)
 
    (0.05)

 
 
 
 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates
 
 $ 7.24
 
      6.73

 
        7.6
 %
 
 
 
 
 
 
 
 
 
 
(1)  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 (A)
 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 and Subsidiaries
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operational Sales Growth Excluding Acquisitions and Divestitures (A)
 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
 
FOURTH QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2017
 
2016
 
Reported
Operational  (1)
Currency

CONSUMER SEGMENT  (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BABY CARE
 
 
 
 
 
 
 
 
 
US
 
$
123

 
123

 
0.0
 %
0.0
 %
%
Intl
 
 
367

 
370

 
(0.8
)
(3.2
)
2.4

WW
 
 
490

 
493

 
(0.6
)
(2.4
)
1.8

 
 
 
 
 
 
 
 
 
 
BEAUTY
 
 
 
 
 
 
 
 
 
US
 
 
596

 
580

 
2.8

2.8


Intl
 
 
514

 
483

 
6.4

2.0

4.4

WW
 
 
1,110

 
1,063

 
4.4

2.4

2.0

 
 
 
 
 
 
 
 
 
 
ORAL CARE
 
 
 
 
 
 
 
 
 
US
 
 
156

 
163

 
(4.3
)
(4.3
)

Intl
 
 
237

 
234

 
1.3

(2.6
)
3.9

WW
 
 
393

 
397

 
(1.0
)
(3.3
)
2.3

 
 
 
 
 
 
 
 
 
 
OTC
 
 
 
 
 
 
 
 
 
US
 
 
406

 
418

 
(2.9
)
(2.9
)

Intl
 
 
699

 
621

 
12.6

6.3

6.3

WW
 
 
1,105

 
1,039

 
6.4

2.6

3.8

 
 
 
 
 
 
 
 
 
 
WOMEN'S HEALTH
 
 
 
 
 
 
 
 
 
US
 
 
3

 
3

</