gtrftltzmtogoimwmt
`January 26, 2016
`
`Johnson 8. Johnson Reports 2015 Fourth-Quarter Results:
`
`2015 Fourth-Quarter Sales of $17.8 Billion decreased 2.4%; EPS was $1.15
`2015 Full-Year Sales of $70.1 Billion decreased 5.7%, Full-Year EPS was $5.48
`Adjusted 2015 Fourth-Quarter EPS was $1.44, an increase of 5.1%’, and Adjusted 2015 Full-Year EPS
`was $6.20, a decrease of 3.0%‘
`Strong Operational Sales Growth Excluding Acquisitions/Divestitures and Hepatitis C impact
`
`NEW BRUNSWICK, N.J., Jan. 26, 2016 /PRNewswireI —- Johnson 8: Johnson (NYSE: JNJ) today announced sales of $17.8
`billion for the fourth quarter of 2015, a decrease of 2.4% as compared to the fourth quarter of 2014. Operational sales
`results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 80%. international sales
`decreased 11.7%, reflectlng operational growth of 1.2% and a negative currency impact of 12.9%. Excluding the net impact
`of acquisitions, divestitures and hepatitis C sales. on an operational basis, worldwide sales increased 7.8%, domestic sales
`increased 13.4% and international sales increased 2.9%.’
`
`Worldwide sales for the full-year 2015 were $70.1 billion, a decrease of 5.7% versus 2014. Operational results increased
`1.8% and the negative impact of currency was 7.5%. Domestic sales increased 2.6%.
`international sales decreased
`13.1%, reflecting operational growth of 1.1% and a negative currency impact of 14.2%. Excluding the net impact of
`acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 65%, domestic sales
`increased 10.6% and international sales increased 3.0%.‘
`
`Net earnings and diluted earnings per share for the fourth quarter of 2015 were $3.2 billion and 51.15, respectively.
`Fourth-quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a
`charge for after-tax special items of approximately $0.6 billion. Fourth-quarter 2014 net earnings included after-tax
`intangible amortization expense of approximately $0.3 billion and a charge for after-tax special items of approximately $1.1
`billion. A reconciliation of non-GAAP financial measures is included as an accompanying schedule. Excluding after-tax
`intangible amortization expense and special items. adjusted net eamings for the current quarter were $4.0 billion and
`adjusted diluted earnings per share were $1.44. representing increases of 4.0% and 5.1%, respectively, as compared to the
`same period in 2014.‘ On an operational basis, adjusted diluted earnings per share increased 12.4%.‘
`
`Net earnings and diluted earnings per share for the full-year 2015 were $15.4 billion and $5.48, respectively. Full-year net
`eamlngs included after-tax intangible amortization expense of approximately $1.1 billion and a net charge for after-tax
`special items of approximately $0.9 billion. Full-year 2014 net earnings included after-tax intangible amortization expense of
`approximately $1.2 billion and a net charge for after—tax special items of approximately $0.8 billion. A reconciliation of non-
`GAAP financial measures is included as an accompanying schedule. Excluding after-tax intangible amortization expense
`and special items, adjusted net earnings for the full-year of 2015 were $17.4 billion and adjusted diluted earnings per share
`were $6.20, representing decreases of 4.8% and 3.0%, respectively, as compared to the full year of 2014.‘ On an
`operational basis, adjusted diluted earnings per share increased 5.8%.‘
`
`"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business
`and iconic Consumer brands,” said Alex Gorsky, Chairman and Chief Executive Officer. "As we enter 2016, our core
`business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well
`to drive sustainable iong~term growth, faster than the markets we compete in."
`
`Mr. Gorsky continued, ''I want to thank all of our colleagues for contributing to these results through their commitment and
`dedication to the people around the world who rely on our products."
`
`The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion reflecting expected operational
`growth in the range of 2.5% to 3.5%. Excluding the impact of acquisitions, divestitures and hepatitis C sales, operational
`sales growth is expected to be in the range of 4.5% to 6.0%.‘ Additionally, the company announced adjusted earnings
`guidance for full-year 2016 of $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to
`7.7%.‘ Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.
`
`Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year,
`consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. Domestic sales increased 2.5%:
`intemational sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of
`14.6%. Excluding the net impact of acquisitions and divestitures. on an operational basis, worldwide sales increased 4.1%,
`domestic sales increased 4.6% and international sales increased 3.8%.‘
`
`Positive contributors to Consumer operational results were sales of over-the-counter products including TYLENOL® and
`MOTRiN® analgesics, upper respiratory products including ZYRTEC® allergy medications, and digestive health products;
`international feminine protection products; LlSTERlNE® oral care products; and NEUTROGENA® skin care products.
`
`Worldwide Pharmaceutical sales of $31 .4 billion for the full-year 2015 represented a decrease of 2.7% versus the prior year
`with an operational increase of 4.2% and a negative impact from currency of 6.9%. Domestic sales increased 5.2%;
`international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of
`15.0%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales
`increased 11.0%. domestic sales increased 18.1% and international sales increased 3.3%.‘
`
`Worldwide operational sales growth was driven by new products and the strength of core products. New product sales
`growth was negatively impacted by lower sales of OLYSlO®/SOVRiAD® (simeprevir) due to competitive entrants. Strong
`growth in new products include lNVOKANA®/lNVOKAMET® (canagliflozin), for the treatment of adults with type 2 diabetes;
`iMBRUVlCA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, or blood
`
`cancers: XARELTO® (rivaroxaban), an oral anticoagulant: and ZYT|GA® (abiraterone acetate), an oral, once-daily
`
`Amerigen v. Janssen lPR2016-00286
`
`JANSSEN EXHIBIT 2033
`Amerigen v. Janssen IPR2016-00286
`
`

`

`medication for use in combination with prednisone for the treatment of metastatic. castration~reslslant prostate cancer.
`
`Additional contributors to operational sales growth were STELARA® (ustekinumab), a biologic approved for the treatment of
`moderate to severe plaque psoriasis and psoriatic arthritis; |NVEGA® SUSTENNA®/XEF‘LlON®/TRlNZA® (paliperidone
`palmitate), long-acting, injectable atypical antlpsychotics for the treatment of schizophrenia in adults; CONCERTA®
`(methylphenidate HCl), for the treatment of attention deficit hyperactivity disorder: and SlMPON|®/SlMPONl ARlA®
`(golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases.
`
`During the quarter, the U.S. Food and Drug Administration (FDA) approved DARZALEXT” (daratumumab) for the treatment
`of double refractory multiple myeloma. Additionally, the FDA approved YONDELlS® (trabectedin) for the treatment of
`patients with unresectable or metastatic liposarcoma or leiomyosarcoma. The European Commission approved EDURANT®
`(rilpiravine) in combination with other anti-retroviral agents, for treatment-naive adolescent patients aged 12 to 18 years
`with human immunodeficiency virus-1 (HIV-1) infection.
`
`In the US., a New Drug Application (NDA) was submitted for |NVOKAMET® XR, a once-daily therapy combining fixed doses
`of canagliflozin and metformin hydrochloride extended release for the treatment of adults with type 2 diabetes. Additionally,
`regulatory applications were submitted for STELARA® (ustekinumab) for the treatment of adult patients with moderately to
`severely active Crohn‘s disease to the FDA and the European Medicines Agency (EMA). Several regulatory submissions
`were completed for additional indications of lMBRUVlCA® (lbrutinib) including for patients with relapsed or refractory chronic
`lymphocytic leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab in both the US.
`and the European Union (EU) as well as for use in treatment-naive patients with CLL and relapsed/refractory patients with
`mantle cell lymphoma in the EU.
`
`Also in the quarter, the acquisition of Novira Therapeutics, lnc., a privately held clinical-stage biopharmaceutical company
`developing innovative therapies for curative treatment of chronic hepatitis B virus infection, was completed.
`
`Worldwide Medical Devices sales of $25.1 billion for the iull~year represented a decrease of 87% versus the prior year
`consisting of an operational decrease of 1.4% and a negative currency impact of 7.3%. Domestic sales decreased 1.0%;
`international sales decreased 14.8%, which reflected an operational decrease of 1.7% and a negative currency impact of
`13.1%. Excluding the net impact of acquisitions and divestitures. on an operational basis, worldwide sales increased 2.5%,
`domestic sales increased 3.3% and international sales increased 2.0%.’
`
`Primary contributors to operational growth were sales of endocuiters and biosurgical products in the Advanced Surgery
`business; electrophysiology products in the Cardiovascular business; joint reconstruction products in the Orthopaedics
`business; and insulin pump products in the Diabetes Care business.
`
`During the quarter, the pediatric indication for the Animas® Vibe® insulin pump was approved by the FDA. Also in the
`quarter, the acquisition of Coherex Medical, lnc., a privately held medical device company focused on the development of
`the Coherex WaveCrest® left atrial appendage occlusion system, was completed.
`
`Subsequent to the quarter, the company announced on January 19”‘. a restructuring of certain Medical Devices
`businesses. The company's Consumer Medical Devices businesses. Vision Care and Diabetes Care, are not impacted by
`these actions. The restructuring is being undertaken to accelerate the pace of innovation, address unmet patient needs and
`drive growth. The actions are expected to result in ongoing annualized, pre-tax cost savings of $0.8 billion to $1.0 billion,
`the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016.
`
`AN
`
`J
`
`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 127,000 employees at more than 250 Johnson 8. 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, divestitures and hepatitis C sales, as well as adjusted
`net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after—lax
`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 wwwrinvestor. nlflcom.
`
`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 ‘-Nfiw inve§tgr.'n‘ 9931. A replay and podcast will be available approximately two hours after the live
`webcast by visiting wt_yw.investor.in;'.conz.
`
`Copies of the financial schedules accompanying this press release are available at \;r_»yyy.investor.l'n‘.comfhistorical-
`salescfm. 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
`3mw.investor. nlconj.
`
`NOTE TO lNVESTORS
`
`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, business
`strategy and restructuring plans. 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 and uncertainties inherent in new product development. including uncertainty of clinical success
`and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; impact of business
`combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to
`successfully execute strategic plans. including restructuring plans; any required consultation procedures relating to the
`restructuring workforce actions; the potential that the expected benefits and opportunities related to the restructuring may
`not be realized or may take longer to realize than expected; market conditions and the possibility that the on-going share
`repurchase program may be suspended or discontinued; significant adverse litigation or government action, including
`related to product liability claims; changes to applicable laws and regulations, including 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 description 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 December 28. 2014. including Exhibit 99 thereto, and the company's subsequent filings with the Securities and
`Exchange Commission. Copies of these filings are available online at www.set:.qov, www.investor.‘nj.com, or on request from
`Johnson 8. Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson
`8. Johnson does not undertake to update any fonrvard-looking statements as a result of new information or future events or
`developments.
`
`Johnson A Johnson and Subsidiaries
`Supplementary Sales Data
`
` _______
`TWELVE MONTHS
`FOURTH QUARTER
`(Unaudited: Dollars in Millions)
`Percent Chan a
`Percent Chan is
`______...______.._._._...____._._...._______..___._._‘.J_.______ _._._..._____...____..._____.._.__._E_..______..
`
`2014 Total 0 eratlons Currenc 2015 2014 Total Operations2015 Currenc __...._.___...____..._______..._______._.....____.....1_
`
`
`
`
`
`
`
`
`Sales to customers by
`segment of business
`
`Consumer
`
`US
`International
`
`Pharrnaceutical
`
`US.
`International
`
`Medical Devices
`
`3 1,231
`2,089
`3,320
`
`4,910
`3,154
`8.064
`
`1,294
`2,312
`3,606
`
`4,356
`3,643
`7,999
`
`“.4;
`
`(4.9)
`(9.6)
`(7.9
`
`12.7
`(134)
`0.8
`
`(4.9)
`5.5
`1.8
`
`127
`(0.9)
`5.5
`
`—
`(15.1)
`9.7
`
`~
`(12.5)
`(5.7)
`
`US.
`International
`
`-
`6.7
`6.7
`2,954
`3,152
`(12.0)
`0.6
`(11.4)
`3,695
`3,275
`(6.7)
`3.4
`(3.3)
`6,649
`6,427
`—
`8,0
`8.0
`8,604
`9,293
`US.
`_*
`international
`8.518
`9,650
`(11.7)
`1.2
`(12.9)
`Worldwide
`$17,811
`18,254
`2.4) %
`4 4
`(6.8)
`
`1
`
`5 5.222
`8,285
`13,507
`
`18,333
`13,097
`31.430
`
`12,132
`13.005
`25,137
`35.687
`34.387
`5 70.074
`
`5.095
`9.400
`14,496
`
`17,432
`14,381
`32.313
`
`12,254
`15,268
`27,522
`34.782
`39,549
`74,331
`
`2.5 %
`(11.9)
`(6.6)
`
`5.2
`12.0)
`(2.7
`
`(1.0)
`(14.8)
`(8.7)
`2.6
`(13.1)
`(5.7) %
`
`2.5
`2.7
`2.7
`
`5.2
`3.0
`4.2
`
`(1.0)
`(1.7)
`(1.4)
`2.6
`1.1
`1.8
`
`-
`(14.6)
`(9.5)
`
`—
`(15.0)
`6.9)
`
`-
`(13.1)
`(7.3)
`-
`14.2)
`(7.5)
`
`Johnson & Johnson and Subsidiaries
`._____.._._._.___.___.....______..__...______._____._j._.___..._ ___..._____._.____._.j___.________.._____....._..._
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`geographic area
`
`2015
`
`2014
`
`FOURTH QUARTER
`Percent Change
`Operations
`
`Total
`
`Currency
`
`__—.
`TWELVE MONTHS
`Percent Change
`Operations
`
`2015
`
`2014
`
`Total
`
`Currency
`
`U.S.
`
`5 9.293
`
`8,604
`
`8.0
`
`"/u
`
`8.0
`
`-
`
`3 35,687
`
`34,782
`
`2.6 %
`
`2.6
`
`-
`
`(16 7)
`1.1
`(15.6)
`13,947
`15,995
`(13.0)
`as
`(12.2)
`4,560
`4.002
`Europe
`(18.2)
`2.6
`(15.6)
`7.160
`6.045
`(21.9)
`2.8
`(19.1)
`1.732
`1,442
`Western Hemisphere excluding US.
`
`Asia-Pacific, Africa (8.4 3.074 3,308 (7.1) 0.9 (8.0) 12,347 13,442 (8.1 ) 0.3
`
`
`
`
`
`
`
`
`
`International
`8.518
`9.650
`(11.7)
`1.2
`(12.9)
`34,387
`39,549
`(13.1)
`1.1
`(14.2)
`1 8
`(75)
`
`5 17.811
`
`18,254
`
`(2.4)
`
`“,1:
`
`4.4
`
`(6.8
`
`3 70.074
`
`74,331
`
`(5.7)
`
`%
`
`Worldwide
`
`Johnson 8. Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`

`

`(Unaudited; in Millions Except Per Share Figures)
`
`Sales to customers
`Cost of products sold
`Selling. marketing and administrative expenses
`Research and development expense
`in-process research and development
`interest (income) expense, net
`Other (income) expense. net
`Restructuring
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnings
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`Effective tax rate
`
`2015
`
`Percent
`to Sales
`100.0
`31.0
`33.1
`16.1
`1.2
`0.6
`(6.8)
`2.9
`21.1
`3.0
`18.1
`
`Amount
`517.811
`5,673
`5,391
`2,064
`214
`107
`(1,205)
`509
`3.758
`543
`5 3.215
`
`S
`
`1.15
`
`2,803.3
`
`FOURTH QUARTER
`2014
`
`Amount
`$18,254
`5,053
`5,822
`2.635
`156
`122
`903
`~
`2,703
`182
`3 2,521
`
`S
`
`0.89
`
`2,045.3
`
`14.4
`
`14
`
`6.7
`
`"/-
`
`Percent
`to Sales
`100.0
`32.1
`31.9
`14.4
`0.8
`0.7
`5.3
`-
`14.0
`1.0
`13.0
`
`Percent
`increase
`Decrease)
`(2.4)
`(3.1)
`1.2
`8.7
`
`39.0
`
`27.5
`
`29.2
`
`Adjusted earnings before provision for taxes and net earnings (1)
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Effective tax rate
`
`5 4,913
`S 4,043
`S
`1.44
`17.7
`
`‘I.
`
`27.8
`22.7
`
`3 4,206
`S 3,887
`3
`1.37
`9.5
`
`":5
`
`
`
`(1) See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson H. Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`__(iJnaudited; in Millions Except Per Share Figures)
`
`Sales to customers
`Cost of products sold
`Selling. marketing and administrative expenses
`Research and development expense
`in-process research and development
`interest (Income) expense, net
`Other (income) expense. net
`Restructuring
`Earnings beiore provision tor taxes on income
`Provision tor taxes on income
`Net earnin s
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`Effective tax rate
`
`2015
`
`Percent
`to Sales
`100.0
`30.7
`30.3
`12.9
`0.3
`0.8
`(2.9)
`0.7
`27.4
`5.4
`22.0
`
`Amount
`5 70,074
`21.536
`21,203
`9.040
`224
`424
`(2,064)
`509
`19,196
`3.701
`5 15.409
`
`5
`
`5.40
`
`2,812.9
`
`TWELVE MONTHS
`2014
`
`Amount
`5 74,331
`22,746
`21,954
`8.494
`178
`466
`(70)
`—
`20,563
`4,240
`516.323
`
`S
`
`5.10
`
`2,863.9
`
`19.7
`
`‘/1.
`
`20.6
`
`‘/-
`
`Percent
`to Sales
`100.0
`30.6
`29.5
`11.4
`0.3
`0.6
`(0.1)
`-
`27.7
`5.7
`22.0
`
`Percent
`increase
`Decrease
`(5.7)
`(53)
`(3.4)
`65
`
`(6.6)
`(10.7
`5.6
`
`(3.9)
`
`
`Adiusted earnings before provision for taxes and net earnings (1)
`
`Earnings before provision for taxes on income
`5 22,003
`31.4
`5 22,825
`30.7
`(3.6)
`
`
`Net earnings
`$17,445
`24.9
`$18,318
`24.6
`(4.8)
`Net earnings per share (Diiuted)
`S
`6.20
`S
`6.39
`(3.0)
`
`
`
`Effective tax rate
`20.7
`19.7
`'/.
`(1) See Reconciliation of Non~GAAP Financial Measures.
`
`Johnson 5 Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measures
`
`Dollars in Millions Exce !Per Share Dale
`
`Fourth Quarter
`2015
`2014
`
`% incr. I
`Door.)
`
`Twelve Months
`2015
`2014
`
`% |ncr.l
`(Decr.
`
`Earnings before provision for taxes on income - as reported
`
`S 3.758
`
`intangible asset amortization expense
`
`301
`
`2.703
`
`371
`
`39.0
`
`"/a
`
`3 19.196
`
`1,570
`
`20.563
`
`1,630
`
`(6.6) %
`
`

`

`Restructuring “l
`
`|n~process research and development
`
`Synihes Integration costs
`
`DePuy AER” Hip program
`
`Litigation expense, net
`
`Orihdclinical Diagnostics divestiture net lgalmlexpense
`
`Additional year of Branded Prescription Drug Fee
`
`Earnings before provision for taxes on income - as adiusted
`
`590
`
`214
`
`83
`
`~
`
`-
`
`(33)
`
`-
`
`156
`
`325
`
`~
`
`692
`
`49
`
`590
`
`224
`
`196
`
`148
`
`141
`
`(62)
`
`-
`
`176
`
`754
`
`126
`
`1,253
`
`(1,899)
`
`220
`—
`-
`-
`
`S 4,913
`4.296
`14 4
`‘Va
`$ 22,003
`22.825
`(3.6)
`“/a
`
`Ne! Earnings « as reported
`
`Intangible asset amortization expense
`
`Restructuring
`
`In-process research and development
`
`Synthes integration costs
`
`DePuy ASR“‘ Hip program
`
`Litigation expense. net
`
`Ortho—Clinical Diagnostics divestiture net (gain)/expense
`
`Additional year of Branded Prescription Drug Fee
`
`5 3,215
`
`220
`
`415
`
`156
`
`59
`
`-
`
`-
`
`(22)
`
`—
`
`2,521
`
`275
`
`-
`
`115
`
`237
`
`-
`
`652
`
`87
`
`~
`
`27 5
`
`“A;
`
`S 15,409
`
`1,113
`
`415
`
`162
`
`144
`
`130
`
`118
`
`(46)
`
`«
`
`(5.6)
`
`“,6
`
`16,323
`
`1,213
`
`~
`
`131
`
`S55
`
`111
`
`1.225
`
`(2)
`
`(1,062)
`
`220
`
`Tax benefit associated with Conor Medsystems
`
`Net Earnings - as adjusted
`
`-
`-
`
`
`$ 4,043
`3,887
`4.0 %
`
`—
`(398)
`
`3 17.445
`18,318
`(4.8) %
`
`Diluted Net Earnings per share - as reported
`
`5
`
`1.15
`
`intangible asset amortization expense
`
`Restructuring
`
`In-process research and development
`
`Synihes integration costs
`
`DePuy ASRW Hip program
`
`Litigation expense. net
`
`0.07
`
`0.15
`
`006
`
`0.02
`
`-
`
`-
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`(0.01)
`
`Additional year of Branded Prescription Dmg Fee
`
`Tax benefit associated with Conor Medsyetems
`
`Diiuied Net Earnings per share - as adjusted
`
`Operational Diluted Net Earnings per share - as adluated'
`
`'Exi:iudes the effect of translational currency
`
`-
`
`~
`
`S
`
`S
`
`1.44
`
`1.54
`
`0.89
`
`0.10
`
`-
`
`0.04
`
`0,05
`
`-
`
`0.23
`
`O 03
`
`~
`
`—
`
`1 37
`
`1.37
`
`("Includes 581 million recorded in cost of products sold
`mlnciudes adjustment to deferred tax asset related to deductibility by tax jurisdiction
`
`29.2
`
`“In
`
`3
`
`5.48
`
`0 39
`
`0.15
`
`0.06
`
`0,05
`
`0.05
`
`0.04
`
`(0.02)
`
`-
`
`-
`
`5.1 %
`
`124
`
`'’/u
`
`S
`
`3
`
`6.20
`
`6.76
`
`5.70
`
`0.42
`
`-
`
`0.04
`
`0,19
`
`0.04
`
`0.43
`
`(0.37)
`
`0.08
`
`(0.14)
`
`639
`
`6.39
`
`(3.9) %
`
`£3.02 %
`
`5.5
`
`°/o
`
`Johnson G Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measure
`
`0 or tiona 5 las Growth Excludin Ac uisiti ns Divestiture and He atitis C Sales 111
`FOURTH QUARTER 2015 ACTUAL vs. 2014 ACTUAL
`
`
`
`WW As Reported:
`US,
`International
`
`Segments
`Cgnsgmgr
`
`1.3%
`(4.9)"/o
`55%
`
`Magical Qgv ggs
`Pharmacggtlcai
`Ogerational % 12’
`6.5‘/.
`12.7%
`i0.9)%
`
`3.4%
`6.7%
`0.6%
`
`Total
`
`4.4‘/.
`80%
`1.2%
`
`

`

`Wound Carslflther
`SPLENDA ®
`US.
`lnlemational
`
`Wound Care] Other
`BENECOL ®
`US.
`International
`
`Diagnostics
`Ortho~CIInIcaI Diagnostics
`US.
`lntemarlonal
`
`Cardlovascular
`Cardls
`US.
`lntemalional
`
`Other Neuroscience
`NUCYNTA *9
`US.
`International
`
`All other Acqulsillcns and Dlvestltures
`US.
`International
`
`2-5
`6.5
`0.3
`
`0-3
`0.1
`05
`
`0-5
`1.0
`0.1
`
`0.1
`00
`0.1
`
`(0.1)
`0.0
`(0.2)
`
`0.5
`0.5
`1.3
`
`0.2
`0.5
`0.0
`
`0.1
`00
`0.1
`
`(0.3)
`0.0
`(0.5)
`
`2.6
`1.3
`3.6
`
`0.1
`0.0
`0.2
`
`0.5
`1.1
`00
`
`_ 9* °‘”°5 3"‘ D"’“‘"
`lnlernalional
`
` U S.
`
`.
`
`
`
`Hepalltls C
`US.
`lnlernalional
`
`4.1
`7 2
`0.7
`
`1.7
`3.4
`0.3
`
`
`
`6.3%
`
`(0.2)"/u
`
`3.9%
`
`2.9%
`
`International
`
`W Hepatitis c products include OLYSIO ®/SCIVRIAD ®and INCNO *3
`(21 Operalional growth excludes the effect of translational currency
`
`Johnson 8. Johnson and Suhsldlarles
`Raconcillatlon ol Non-GAAP Financial Measure
`
`gggraglggal Saleg Grgwth Excludlng Acgulsigions, Dlvesglgurag aggg ljegagiglg C Salgg ‘-3
`TWELVE MONTHS 2015 ACTUAL vs. 2014 ACTUAL
`
`
`
`Segments
`Consumnr
`
`W A: Regortadz
`US.
`International
`
`Wound Care/Othar
`SPLENDA ®
`U3.
`International
`
`Women‘s Health
`K-Y ®
`US.
`lnlemalional
`
`Wound Care I Other
`BENECOL ®
`US.
`International
`
`Diagnostic:
`Orlho-Clinical Diagnostics
`U S.
`lnlemalional
`
`2.7%
`2.5%
`2.7%
`
`0.6
`1.7
`01
`
`0.3
`0.4
`0.2
`
`0.6
`0.0
`09
`
`Madl§a| Devices
`Pharmacuutlcal
`Ogarntlonal ‘l: (2)
`4.2%
`5.2%
`3.0%
`
`(1.4 V.
`(1.0)%
`(1 7)%
`
`'
`
`Tgtgl
`
`1.8%
`2 6%
`11%
`
`0.1
`0.2
`0.0
`
`0.1
`0.1
`0.0
`
`0.1
`(10
`02
`
`1.2
`1.4
`1.0
`
`3.2
`3.9
`2.6
`
`

`

`Cardiovascular
`Cordls
`US.
`International
`
`Other Neuroscience
`NUCYNTA ®
`US.
`Intemationa:
`
`All Other Acquisitions and Divestflnres
`US.
`International
`
`(0.1)
`0.0
`(0.1)
`
`0.3
`0.5
`0.0
`
`0-5
`0.4
`0.9
`
`0.1
`O 0
`0.2
`
`0-3
`0.2
`0.4
`
`0.2
`0,3
`0.0
`
`0.0
`00
`0.1
`
`
`US.
`4.6%
`5.8%
`3.3%
`4.8%
`International
`3 8%
`3.0%
`2.0%
`2 8%
`
`Hapamla C
`US.
`International
`
`6.5
`12.3
`0.3
`
`2.7
`5.8
`0.2
`
`
`US.
`17.5%
`6.4%
`Internauonat
`3.3%
`1.3%
`
`
`!ntemationaJ
`3.8%
`3.3%
`2.0%
`3.0%
`
`‘” Hepafiiis :3 products include owsno ®lSOVR!AD @ and mcnvo :3
`‘Z’ Operational growth excludes the effect of translational currency
`
`FOURTH QUARTER
`
`R FORTE SA Svs.PRORP RD MM
`
`TWELVE MONTHS
`
`251$
`
`3915
`
`Regarteg
`
`'/.Chane
`0ge[ag1gua| U1 Qggeucg
`
`S
`
`103
`381
`484
`
`170
`238
`408
`
`96
`423
`524
`
`150
`254
`414
`
`7.3%
`-11.0”/o
`-7.6%
`
`13.3%
`~9.8%
`-1.4%
`
`5.5%
`-6.8%
`-2.6%
`
`7 3%
`2.5%
`3.7%
`
`13.3%
`5.2%
`8.2%
`
`5.5%
`9.4%
`8.2%
`
`-
`-13.8"/a
`41.3%
`
`»
`—15 0%
`-9 6%
`
`-
`46.2%
`40.8"/o
`
`S
`
`;O_1_§
`
`421
`1.623
`2,044
`
`629
`951
`1,580
`
`1,536
`2,439
`3,975
`
`ggjg
`
`407
`1.832
`2,239
`
`600
`1,047
`1,647
`
`1.357
`2,749
`4,106
`
`“/.chana
`gnggrteg m C
`
`em:
`
`3.4%
`~1 1.4%
`-8.7%
`
`4.8%
`~9.2%
`~4.1"/2
`
`13.2%
`v1 1.3%
`-3.2%
`
`3.4%
`0.7%
`1.2%
`
`4.8%
`5.5%
`5.2%
`
`13.2%
`5.5%
`8.1%
`
`-
`-12.1%
`-9.9%
`
`-
`44.7%
`-9.3%
`
`-
`-16.8“/n
`-11.3"/u
`
`cgugymr-:R gegmgm *3!
`_BA§Y QARE
`US
`lntl
`W
`ORAL CARE
`US
`lull
`W
`933
`US
`Int!
`WW
`SK]N CAR§
`US
`Ink!
`W
`WOMEN'S HEALTH
`US
`int!
`W
`WOUND CARE I OTHER
`US
`Int!
`W
`
`TOTAL CONSUMER
`US
`Inll
`WW
`
`PHARMACEUTICAL SEGMENT131-(31
`IMMUNOLOGY
`us
`lntl
`W
`
`382
`E63
`1.045
`
`439
`432
`871
`
`7
`276
`283
`
`130
`95
`229
`
`1,231
`2.089
`3,320
`
`3
`
`362
`711
`1.073
`
`471
`485
`956
`
`7
`301
`308
`
`208
`123
`331
`
`1.294
`2,312
`3,608
`
`'5.8%
`40.9%
`-8.9%
`
`0.0%
`-8.3%
`-6.1%
`
`«37.5%
`-19.5%
`-30.8%
`
`-4.9%
`-9.6%
`-7.91’.
`
`~6.B%
`4.6%
`-1.1%
`
`0.0%
`7.5%
`7.4%
`
`-37.5%
`-8.4%
`»26.7°/u
`
`-4.9%
`5.5%
`1.8%
`
`-
`-15.5%
`-7.8%
`
`-
`-15.8%
`-15 5%
`
`-
`-11.1%
`-4.1%
`
`-
`-15.1%
`-9.7‘/.
`
`1.357
`1.674
`3,531
`
`26
`1.174
`1,200
`
`753
`-124
`1,177
`
`5.222
`3.285
`5 13.507
`
`1,334
`1,924
`3,753
`
`50
`1.252
`1.302
`
`848
`596
`1,444
`
`5,095
`9.400
`14.496
`
`1.3%
`43.0%
`43.0%
`
`48.0%
`-6.2%
`-7.3%
`
`-11.2%
`46.9%
`-18.5%
`
`2.5%
`-11.97:
`-6.8%
`
`1.3%
`1.2%
`1.3%
`
`-48.0%
`9.8%
`7.6%
`
`-11.2%
`43.3%
`-14.1“/u
`
`2.5%
`2.7%
`2.7‘/.
`
`-
`-14.27:
`-7.3%
`
`-
`45.0%
`-15.4%
`
`-
`40.6%
`-4.4%
`
`-
`-14.6‘/o
`-9.5‘/.
`
`FOURTH QUARTER
`
`K
`'/nchango
`Ragarted Oguratlonalm Currency
`
`-4.8%
`
`V
`
`K
`
`K
`
`TWELVE MONTHS
`
`Ragorteg Ogarallonalm Currangx
`
`15.7%
`2.0%
`11.7%
`
`—
`-14.1%
`-4.2%
`
`75%
`5.5%
`6.9%
`
`-
`45.9%
`
`

`

`IC D
`
`R
`us
`us Exports ‘4’
`we
`ww
`szmpgm I SIMPONI ARIA
`us
`um
`w
`STELARA
`us
`mu
`w
`QD_-IER nwung fix
`us
`lntl
`w
`mrgclgogs Dgsggsgs
`us
`am:
`w
`an RANT
`us
`mu
`w
`owsuo I sQvR1AD
`us
`mu
`w
`PR 11/ups
`us
`mu
`w
`TH RINF
`us
`mu
`ww
`
`co X/R
`
`T us
`
`1 ASES
`
`1.193
`150
`:07
`1,530
`
`204
`136
`340
`
`524
` 1
`742
`
`.
`9
`9
`
`353
`433
`301
`
`12
`95
`1111
`
`(1)
`«:5
`44
`
`237
`no
`457
`
`1,052
`244
`ave
`1,672
`
`154
`1112
`345
`
`356
`139
`545
`
`-
`15
`15
`
`554
`512
`1,075
`
`s
`as
`an
`
`256
`as
`321
`
`24:
`205
`443
`
`13.4%
`-25.2%
`43.4%
`0.5%
`
`24.4%
`-25.3%
`.1 .7=/.
`
`47 2%
`15.3%
`35.1 %
`
`-
`-40.0%
`40.0%
`
`-35161.,
`445%
`-25.6%
`
`100.0%
`13 1%
`13.9%
`
`"
`-30%
`-35.3%
`
`1a.1=/..
`.12.2°/.,
`4.2%
`
`13.4%
`—2a.2°/.
`as 9%
`3.5%
`
`24 4%
`.145->/.
`3.3%
`
`47.2%
`32. as
`42.00/.
`
`-
`24,
`.27.
`-217“/.
`
`.35.a=/.
`-3.5%
`.2o,4°/.,
`
`100.0%
`29.3%
`14.0%
`
`-'
`-27.01;
`-85.5%
`
`1a,1%
`-0 2°/.
`9.7%
`
`-
`-
`-14.5%
`-3.3%
`
`.
`405%
`.5 5%
`
`.
`47.1%
`.5 9%
`
`-
`-1231.
`-12.3"/.
`
`-
`-10.9%
`~s.2%
`
`-
`-15.2»/.
`~15.1°/.
`
`-
`-3.3%
`-0.3%
`
`-
`—12.o°,1.
`-5.5%
`
`1
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`as
`113
`
`59
`153
`
`10.2»/.
`.253“/.
`
`10.2%
`-15.51;
`—e.7'-.1.
`
`—
`»9.r=/,
`
`
`
`See footnotes at end 01 schedule
`
`TWELVE MONTHS
`
`N§QRO§_§l§Ng§
`Us
`Inn
`W
`CONCERTA I METHYLPHENIDATE
`US
`ml!
`W
`INVEGA I PALIPERIQQNE
`US
`mi
`W
`jNVE§f1_ Sg§T§[3N,5 I X§PL1QN I 1NV§§;A
`TR NZA
`US
`Inn
`WW
`R1SP§RDAL QONSTA
`US
`Inn
`W
`OTHER NEUROSC ENCE
`US
`mu
`W
`ongggggx
`US
`lntl
`WW
`IMQRUWQA
`us
`Int!
`W
`VELCAD§
`US
`11111
`W
`ZYTIQA
`US
`lntl
`WW
`OTHER ON§OgQ§1
`
`2915 magma:
`
`Qz=_._9rI._na_ti°I H1
`
`
`
`_C_ur_ro_r5.1L
`
`2121:
`
`"I. Chan 3
`am Ezmmsl Qummnm §2LL9.n.c1
`
`2,850
`3.409
`6,259
`
`434
`381
`821
`
`339
`234
`573
`
`1.085
`745
`1.830
`
`409
`561
`970
`
`583
`1,482
`2,065
`
`1,547
`3,148
`4,695
`
`375
`314
`689
`
`-
`1,333
`1.333
`
`1,070
`1.161
`2,231
`
`2.452
`4,035
`6,487
`
`152
`447
`599
`
`360
`280
`640
`
`825
`753
`1.583
`
`427
`763
`1.190
`
`658
`1.782
`2.470
`
`1,157
`3,300
`4,457
`
`145
`55
`200
`
`-
`1,61!
`1.618
`
`971
`1,268
`2.237
`
`16.2%
`—155%
`-3.5%
`
`'
`43.4%
`37.1%
`
`.5 8%
`-16.4%
`-10.5%
`
`31.5%
`-214%
`15.2%
`
`-4.2%
`-26.5%
`-18.5%
`
`-15.3%
`-16.6%
`-16.4%
`
`33.7%
`-4.6%
`5.3%
`
`'
`'
`‘
`
`.
`4 7.5%
`-17 6%
`
`10 2%
`—813°/1
`-0.3%
`
`16 2%
`4.8%
`5.0%
`
`'
`-03%
`46,91’.
`
`~58"/o
`-2.9%
`-4.6%
`
`31.5%
`14 9%
`23.5%
`
`-4.2%
`42.9%
`-9.8%
`
`—15.3"/«.
`-4.5"/.
`17.5%
`
`33.7%
`12.2%
`17.7%
`
`'
`‘
`'
`
`—
`-42%
`4.2%
`
`10.2%
`9.0%
`9.5%
`
`-
`43.7%
`-8 5%
`
`—
`-13. 1%
`-95%
`
`-
`-13.5“/o
`-5.9%
`
`-
`~17,3°/a
`-83%
`
`-
`-13.6"/:.
`-8.7%
`
`-
`42.3%
`-8.9%
`
`-
`-16.8%
`42.4%
`
`-
`"
`"
`
`-
`'1 3.4%
`43.4%
`
`-
`-17 3%
`-9.8%
`
`

`

`ISM
`
`US
`
`A
`
`Int!
`W
`I VASC
`gmgg L9
`US
`Iml
`W
`XARELTQ
`US
`lnti
`WW
`[NV KANA I INVO M T
`US
`lntl
`W
`PBQQRIT I 52%;
`US
`lnli
`W
`OTHER
`US
`Inn
`W
`
`TOTAL PHARMAC§UTlCA§
`US
`lnfl
`W
`See footnotes at end of schedule
`
`102
`340
`442
`
`4,759
`1,659
`6,418
`
`1,868
`-
`1.666
`
`1,233
`70
`1,308
`
`692
`376
`1.068
`
`981
`1,213
`2.174
`
`41
`361
`402
`
`3,600
`1,977
`5,577
`
`1.522
`-
`1,522
`
`569
`17
`586
`
`715
`523
`1,238
`
`794
`1,437
`2,231
`
`4,910
`3.154
`8,064
`
`5
`
`_
`
`18,333
`13.097
`5 31.430
`
`17,432
`14,331
`32,313
`
`
`
`
`
`R PORT A , v.PRRP ‘OI M
`
`FOURTH QUARTER I uM‘AAW(W V-” MA-7!“1;” V 7 H 1
`
`%Chane
`Ragnrtad Ogeratlonall-11 Cgrrancx
`
`_2fl§
`
`g__g
`
`fig
`
`gg1__
`
`‘
`-5.8%
`10.0"/»
`
`322%
`-16.1%
`15.1%
`
`22.7%
`-
`22.7%
`
`‘
`*
`'
`
`-312%
`-28.1 %
`-13.7%
`
`21 0%
`-15.6‘/o
`-2.6%
`
`52%
`42.0%
`-2.1%
`
`'
`11,2“/o
`252%
`
`322%
`-3.9%
`191970
`
`227%
`‘
`22.7%
`
`'
`-
`‘
`
`-3.2%
`~1 5.8%
`-8.5%
`
`21.0%
`41.1%
`4.8%
`
`5.2‘/.
`3.0%
`4.2‘/.
`
`v
`-17 0%
`-15 2%
`
`-
`42.2%
`-43%
`
`-
`~
`-
`
`-
`w
`“
`
`~
`42.3%
`-5.2%
`
`-
`41.5%
`-7.4%
`
`-
`-15.0'/-
`-6.9%
`
`"/achane
`Ragortad Ogarational ‘-11 Currencx
`
`5
`
`229
`210
`439
`
`202
`273
`430
`
`.
`24
`24
`
`222
`335
`558
`
`205
`303
`51‘
`
`.
`14
`14
`
`3.2%
`-37.5"/n
`-21.3%
`
`-13%
`-97%
`~5.5°/o
`
`.
`71 4%
`714%
`
`3.2%
`-29.11%
`~1 5.4%
`
`-1.9%
`5.0%
`2.2%
`
`-
`-~
`"
`
`-
`-8.1%
`-4.9%
`
`'
`-14.7%
`-5.3%
`
`—
`
`--
`"
`
`C
`
`3
`
`931
`1,105
`2,035
`
`833
`1.095
`1,923
`
`.
`as
`35
`
`5,330
`3,352
`9,252
`
`352
`1,345
`2.203
`
`354
`1,273
`2,142
`
`455
`506
`952
`
`5,197
`4.475
`5.675
`
`3.0%
`--17.9%
`-7.5%
`
`-3.5%
`-14.3%
`-10.0“/n
`
`'-
`453.0%
`-91.1“/o
`
`3.5%
`-13,3“/u
`-43%
`
`5.0%
`-5.3%
`-0.1%
`
`-3.5%
`1.3%
`41.7"/o
`
`-'
`"
`"
`
`3.5%
`-0.3%
`1.7%
`
`~
`-12,5”/n
`~7.7%
`
`-
`45,5“/o
`—9.3°/o
`
`-
`"
`"
`
`v
`-13.07»
`-5.0%
`
`M§DlCAL uevlcgs 13-191
`CARD|0VA§§ULAR
`U5
`lnu
`W
`D|ABETE§
`US
`10“
`W
`QlA§NQ§T]§§ 19
`us
`lnll
`W
`ORTHOP
`US
`lnti
`W
`fi!E§
`US
`Inll
`W
`KNEES
`
`US
`Int!
`W
`TRAUMA
`
`OTHER
`
`US
`|n[[
`W
`SPIN
`US
`Int!
`W
`SURQERY
`US
`Int!
`WW
`AQVANCE 2
`US
`Intl
`W
`GENERAL
`US
`Int!
`WW
`SPECIALTY
`
`US
`int!
`VWN
`VISIQN gAR§
`
`1,435
`935
`2,423
`
`213
`141
`354
`
`254
`151
`405
`
`379
`255
`544
`
`592
`423
`1,020
`
`1,044
`1,359
`2,413
`
`334
`435
`870
`
`430
`717
`1.147
`
`230
`155
`395
`
`1,339
`1,102
`2,441
`
`194
`155
`350
`
`235
`155
`401
`
`352
`287
`539
`
`557
`494
`1,051
`
`992
`1,434
`2,575
`
`352
`497
`549
`
`432
`821
`1,253
`
`203
`155
`374
`
`7.4%
`-10.6%
`-07%
`
`9.5%
`-9.6%
`1.1%
`
`7.6%
`»85%
`1.0%
`
`7.7%
`-7.7%
`0.8%
`
`5.3%
`-13.4"/n
`—2.9%
`
`5.2%
`-7.7%
`-2.5%
`
`9,1”/n
`-22%
`215%
`
`—0,5"/o
`42.7%
`-5.5%
`
`10.5%
`0.0%
`5.9%
`
`7.4%
`1.0%
`4.5%
`
`9.5%
`2.3%
`5.4%
`
`7.5%
`2.4%
`5.5%
`
`7.7%
`4.5%
`6.3%
`
`6.3%
`-2.1%
`2.4%
`
`5.2%
`4 4%
`4.7%
`
`9.1%
`101%
`9.7%
`
`-0.5“/a
`-1.3%
`-10%
`
`10.6%
`14.5%
`12.4%
`
`-
`—11.5"/2
`~5,2°/a
`
`v
`-11.9"/o
`-5.3%
`
`-
`40.9%
`-4.5%
`
`-
`42.3%
`-55%
`
`-
`-11 3%
`-53%
`
`-
`-12,1“/n
`-7.2%
`
`-
`-12.3%
`-7.2%
`
`-
`-1114“/u
`-7 5%
`
`-
`-14.5"/n
`5.5%
`
`781
`551
`1,332
`
`915
`550
`1,495
`
`1,452
`1,056
`2,528
`
`2,221
`1,635
`3.905
`
`3,991
`5,225
`9,217
`