`
`Johnson & 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 /PRNewswire/ -- Johnson & 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 8.0%. International sales
`decreased 11.7%, reflecting 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 6.5%, 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 $1 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 earnings 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 com pared 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
`earnings 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(cid:173)
`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 long-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%;
`international 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; LISTERINE® 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 OL YSIO®!SOVRIAD® (simeprevir) due to competitive entrants. Strong
`growth in new products include INVOKANA®/INVOKAMEr® (canagliflozin), for the treatment of adults with type 2 diabetes;
`IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain 8-cell malignancies, or blood
`cancers; XAREL To® (rivaroxaban), an oral anticoagulant; and ZYTIGA® (abiraterone acetate), an oral, once-daily
`
`JANSSEN EXHIBIT 2006
`Mylan v. Janssen IPR2016-01332
`
`
`
`medication for use in combination with prednisone for the treatment of metastatic, castration-resistant 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; INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone
`palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults; CONCERT A®
`(methylphenidate HCI), for the treatment of attention deficit hyperactivity disorder; and SIMPONl®/SIMPONI ARIA®
`(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 DARZALEXTM (daratumumab) for the treatment
`of double refractory multiple myeloma. Additionally, the FDA approved YONDELIS® (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 U.S., a New Drug Application (NOA) was submitted for INVOKAMET® 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 IMBRUVICA® (ibrutinib) including for patients with relapsed or refractory chronic
`lymphocytic leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab in both the U.S.
`and the European Union (EU) as well as for use in treatrnent-narve patients with CLL and relapsed/refractory patients with
`mantle cell lymphoma in the EU.
`
`Also in the quarter, the acquisition of Novira Therapeutics, Inc., 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 full-year represented a decrease of 8. 7% 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 endocutters 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, Inc., 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 19th, 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.
`
`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 127,000 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, 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-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 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(cid:173)
`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
`
`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.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 statements as a result of new information or future events or
`developments.
`
`Johnson & Johnson and Subsidiaries
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`segment of business
`
`Consumer
`U.S.
`International
`
`Pharmaceutical
`U.S.
`International
`
`Medical Devices
`U.S.
`International
`
`2015
`
`2014
`
`FOURTH QUARTER
`Percent Chan e
`Operations
`
`Total
`
`Currency
`
`2015
`
`2014
`
`TWELVE MONTHS
`Percent Chanse
`Operations
`
`Total
`
`Currency
`
`(4.9) %
`(9.6)
`(7.9)
`
`12.7
`(13.4)
`0.8
`
`6.7
`(11.4)
`(3.3)
`
`1,231
`2,089
`3,320
`
`4,910
`3,154
`8,064
`
`3,152
`3,275
`6,427
`
`1,294
`2,312
`3,606
`
`4,356
`3,643
`7,999
`
`2,954
`3,695
`6,649
`
`8,604
`9,650
`18,254
`
`(4.9)
`5.5
`1.8
`
`12.7
`(0.9)
`6.5
`
`6.7
`0.6
`3.4
`
`8.0
`1.2
`4.4
`
`(15.1)
`(9.7)
`
`(12.5)
`(5.7)
`
`(12.0)
`(6.7)
`
`$ 5,222
`8,285
`13,507
`
`18,333
`13,097
`31,430
`
`12,132
`13,005
`25,137
`
`2.5 %
`(11.9}
`(6.8)
`
`5.2
`(12.0)
`(2.7)
`
`(1.0)
`(14.8)
`(8.7)
`
`5,096
`9,400
`14,496
`
`17,432
`14,881
`32,313
`
`12,254
`15,268
`27,522
`
`34,782
`39,549
`74,331
`
`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)
`
`U.S.
`International
`Worldwide
`
`9,293
`8,518
`$17,811
`
`8.0
`(11.7)
`(24) %
`
`(12.9)
`(6.8)
`
`35,687
`34,387
`$ 70,074
`
`2.6
`(13.1)
`(5.7) %
`
`Johnson & Johnson and Subsidiaries
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`geographic area
`
`2015
`
`2014
`
`FOURTH QUARTER
`Percent Change
`Operations
`
`Total
`
`Currenc~
`
`2015
`
`2014
`
`TWELVE MONTHS
`Percent Change
`Operations
`
`Total
`
`Currency
`
`U.S.
`
`9,293
`
`8,604
`
`8.0 %
`
`Europe
`Western Hemisphere excluding U.S.
`Asia-Pacific, Africa
`International
`
`4,002
`1,442
`3,074
`8,518
`
`4,560
`1,782
`3,308
`9,650
`
`(12.2)
`(19.1)
`(7.1)
`(11.7)
`
`Worldwide
`
`$17,811
`
`18,254
`
`(2.4) %
`
`8.0
`
`0.8
`2.8
`0.9
`1.2
`
`4.4
`
`$35,687
`
`34,782
`
`2.6 %
`
`(13.0)
`(21.9)
`(8.0)
`(12.9)
`
`15,995
`6,045
`12,347
`34,387
`
`18,947
`7,160
`13,442
`39,549
`
`(15.6)
`(15.6)
`(8.1)
`(13.1)
`
`(6.8)
`
`$ 70,074
`
`74,331
`
`(5.7) %
`
`2.6
`
`11
`2.6
`0.3
`1.1
`
`1.8
`
`(16.7)
`(18.2)
`(8.4)
`(14.2)
`
`(7.5)
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`
`
`(Unaudited; in Millions Except Per Share Fi!i!ures!
`
`FOURTH QUARTER
`
`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
`Restructurin!i!
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnin!i!s
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`2015
`
`2014
`
`Amount
`$17,811
`5,673
`5,891
`2,864
`214
`107
`(1,205)
`509
`3,758
`543
`3,215
`
`1.15
`
`2,803.3
`
`Percent
`to Sales
`100.0
`31.8
`33.1
`16.1
`1.2
`0.6
`(6.8)
`2.9
`21.1
`3.0
`18.1
`
`Amount
`$18,254
`5,853
`5,822
`2,635
`156
`122
`963
`
`2,703
`182
`2,521
`
`0.89
`
`2,845.3
`
`Percent
`to Sales
`100.0
`32.1
`31.9
`14.4
`0.8
`0.7
`5.3
`
`14.8
`1.0
`13.8
`
`Effective tax rate
`
`14.4 ¾
`
`6.7 ¾
`
`Adjusted earnings before provision for taxes and net earnings (1)
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Effective tax rate
`
`$ 4,913
`$ 4,043
`1.44
`17.7 ¾
`
`27.6
`22.7
`
`4,296
`$ 3,887
`$
`1.37
`9.5 ¾
`
`23.5
`21.3
`
`(1) See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`(Unaudited; in Millions Except Per Share Fi!i!ures)
`
`TW ELVE MONTHS
`
`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
`Restructurin!i!
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnin!i!s
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`2015
`
`2014
`
`Amount
`$ 70,074
`21,536
`21,203
`9,046
`224
`424
`(2,064)
`509
`19,196
`3,787
`$15,409
`
`5.48
`
`2,812.9
`
`Percent
`to Sales
`100.0
`30.7
`30.3
`12.9
`0.3
`0.6
`(2.9)
`0.7
`27.4
`5.4
`22.0
`
`Amount
`$ 74,331
`22,746
`21,954
`8,494
`178
`466
`(70)
`
`20,563
`4,240
`$16,323
`
`5.70
`
`2,8.63.9
`
`Percent
`to Sales
`100.0
`30.6
`29.5
`11.4
`0.3
`0.6
`(0.1)
`
`27.7
`5.7
`22.0
`
`Effective tax rate
`
`19.7 ¾
`
`20.6 ¾
`
`Adjusted earnings before provision for taxes and net earnings (1)
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Effective tax rate
`
`$ 22,003
`$17,445
`$
`6.20
`20.7 ¾
`
`31.4
`24.9
`
`$22,825
`$18,318
`$
`6.39
`19.7 ¾
`
`30.7
`24.6
`
`(1) See Reconciliation of Non-GAAP Financial Measures.
`
`Percent
`Increase
`(Decrease)
`(2.4)
`(3.1)
`1.2
`8.7
`
`39.0
`
`27.5
`
`29.2
`
`14.4
`4.0
`5.1
`
`Percent
`Increase
`(Decrease)
`(5.7)
`(5.3)
`(3.4)
`6.5
`
`(6.6)
`(10.7)
`(5.6)
`
`(3.9)
`
`(3.6)
`(4.8)
`(3.0)
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measures
`
`(Dollars in Millions Except Per Share Data)
`
`Fourth Quarter
`2014
`2015
`
`% Iner./
`(Deer.)
`
`Twelve Months
`2015
`2014
`
`% Iner./
`(Deer.)
`
`Earnings before provision for taxes on income - as reported
`
`$ 3,758
`
`2,703
`
`39.0 %
`
`$19,196
`
`20,563
`
`(6.6) %
`
`Intangible asset amortization expense
`
`301
`
`371
`
`1,570
`
`1,630
`
`
`
`Restructuring (1)
`
`In-process research and development
`
`Synthes integration costs
`
`DePuy ASR™ Hip program
`
`Litigation expense, net
`
`590
`
`214
`
`83
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`(33)
`
`Additional year of Branded Prescription Drug Fee
`
`156
`
`325
`
`692
`
`49
`
`590
`
`224
`
`196
`
`148
`
`141
`
`178
`
`754
`
`126
`
`1,253
`
`(62)
`
`(1,899)
`
`220
`
`Earnings before provision for taxes on income - as adjusted $4,913
`
`4,296
`
`14.4 %
`
`$22,003
`
`22,825
`
`(3.6) %
`
`Net Earnings - as reported
`
`$ 3,215
`
`2,521
`
`27.5 %
`
`$15,409
`
`16,323
`
`(5.6) %
`
`Intangible asset amortization expense
`
`Restructuring
`
`In-process research and development
`
`Synthes integration costs
`
`DePuy ASR™ Hip program
`
`Litigation expense, net
`
`220
`
`415
`
`156
`
`59
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`(22)
`
`Additional year of Branded Prescription Drug Fee
`
`Tax benefit associated with Coner Medsystems
`
`275
`
`115
`
`237
`
`652
`
`87
`
`1,113
`
`1,213
`
`415
`
`162
`
`144
`
`130
`
`118
`
`131
`
`555
`
`111
`
`1,225
`
`(2)
`
`(46)
`
`(1,062)
`
`220
`
`(398)
`
`Net Earnings - as adjusted
`
`$ 4,043
`
`3,887
`
`4.0 %
`
`$17,445
`
`18,318
`
`(4.8) %
`
`Diluted Net Earnings per share - as reported
`
`Intangible asset amortization expense
`
`Restructuring
`
`In-process research and development
`
`Synthes integration costs
`
`DePuy ASR™ Hip program
`
`Litigation expense, net
`
`1 15
`
`0.07
`
`0.15
`
`0.06
`
`0.02
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`(0.01)
`
`0.89
`
`0.10
`
`0.04
`
`0.08
`
`0.23
`
`0.03
`
`29.2 %
`
`5.48
`
`0.39
`
`0.15
`
`0.06
`
`0.05
`
`0.05
`
`0.04
`
`5.70
`
`0.42
`
`0.04
`
`0.19
`
`0.04
`
`0.43
`
`(0.02)
`
`(0.37)
`
`(3.9) %
`
`Additional year of Branded Prescription Drug Fee
`
`Tax benefit associated with Coner Medsystems
`
`Diluted Net Earnings per share - as adjusted
`
`Operational Diluted Net Earnings per share - as adjusted*
`
`*Excludes the effect of translational currency
`
`1.44
`
`1.54
`
`1.37
`
`1.37
`
`5.1 %
`
`$ 6.20
`
`12.4 %
`
`6.76
`
`0.08
`
`(0.14)
`
`6.39
`
`6.39
`
`(3.0) %
`
`5.8 %
`
`(1l1ncludes $81 million recorded in cost of products sold
`(2llncludes adjustment to deferred tax asset related to deductibility by tax jurisdiction
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measure
`
`Operational Sales Growth Excluding Acquisitions Divestitures and Hepatitis C Sales ill
`FOURTH QUARTER 2015 ACTUAL vs. 2014 ACTUAL
`
`WW As Reported:
`U.S.
`International
`
`Se ments
`Con§umer
`
`1.8%
`(4.9)%
`5.5%
`
`Medi£al Device§
`Pharmaceutical
`Operational ¾ (i)
`6.5%
`12.7%
`(0.9)%
`
`3.4%
`6.7%
`0.6%
`
`Total
`
`4.4%
`8.0%
`1.2%
`
`
`
`2.6
`6.5
`0.3
`
`0.3
`0.1
`0.5
`
`Wound Care/Other
`SPLENDA ®
`U.S.
`International
`
`Wound Care I Other
`BENECOL®
`U.S.
`International
`
`Diagnostics
`Ortho-Clinical Diagnostics
`U.S.
`International
`
`Cardiovascular
`Cordis
`U.S.
`International
`
`Other Neuroscience
`NUCYNTA ®
`U.S.
`International
`
`All Other Acquisitions and Divestitures
`U.S.
`International
`
`WW Ops excludin~ Acquisitions and Divestitures
`U.S.
`International
`
`4.7%
`1.7%
`6.3%
`
`Hepatitis C
`U.S.
`International
`
`WW Ops excluding Hepatitis Conly
`U.S.
`International
`
`WW Ops excludin~ Acquisitions, Divestitures and Hepatitis C
`U.S.
`International
`
`4.7%
`1.7%
`6.3%
`
`(1) Hepatitis C products include OL YSIO ®tSOVRIAD ®and INCIVO ®
`(2) Operational growth excludes the effect of translational currency
`
`0.5
`1.0
`0.1
`
`0.1
`0.0
`0.1
`
`(0.1)
`0.0
`(0.2)
`
`0.9
`0.5
`1.3
`
`0.2
`0.5
`0.0
`
`0.1
`0.0
`0.1
`
`6.1%
`10.0%
`2.6%
`
`1.7
`3.4
`0.3
`
`6.1%
`11.4%
`1.5%
`
`7.8%
`13.4%
`2.9%
`
`(0.3)
`0.0
`(0.5)
`
`2.6
`1.3
`3.6
`
`0.1
`0.0
`0.2
`
`5.8%
`8.0%
`3.9%
`
`5.8%
`8.0%
`3.9%
`
`0.5
`11
`0.0
`
`7.0%
`13.8%
`(0.9)%
`
`4.1
`7.2
`0.7
`
`10.6%
`19.9%
`(0.2)%
`
`11.1%
`21.0%
`(0.2)%
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measure
`
`Operational Sales Growth Excluding Acquisitions Divestitures and Hepatitis C Sales ill
`TWELVE MONTHS 2015 ACTUAL vs. 2014 ACTUAL
`
`WW As Reported:
`U.S.
`International
`
`Wound Care/Other
`SPLENDA ®
`U.S.
`International
`
`Women's Health
`K-Y®
`U.S.
`International
`
`Wound Care I Other
`BENECOL®
`U.S.
`International
`
`Diagnostics
`Ortho-Clinical Diagnostics
`U.S.
`International
`
`Se ments
`Consumer
`
`2.7%
`2.5%
`2.7%
`
`0.6
`1.7
`0.1
`
`0.3
`0.4
`0.2
`
`0.6
`0.0
`0.9
`
`Medical Devices
`Pharmaceutical
`Operational % (2)
`4.2%
`5.2%
`3.0%
`
`j1.4)%
`(1.0)%
`(1.7)%
`
`Total
`
`1.8%
`2.6%
`1.1%
`
`0.1
`0.2
`0.0
`
`0.1
`0.1
`0.0
`
`0.1
`0.0
`0.2
`
`1.2
`1.4
`1.0
`
`3.2
`3.9
`2.6
`
`
`
`Cardiovascular
`Cordis
`U.S.
`International
`
`Other Neuroscience
`NUCYNTA ®
`U.S.
`International
`
`All Other Acquisitions and Divestitures
`U.S.
`International
`
`WW Ops excluding Acquisitions and Divestitures
`U.S.
`International
`
`(0.1)
`0.0
`(0.1)
`
`4.1%
`4.6%
`3.8%
`
`Hepatitis C
`U.S.
`International
`
`WW Ops excluding Hepatitis C only
`U.S.
`International
`
`WW Ops excluding Acquisitions, Divestitures and Hepatitis C
`U.S.
`International
`
`4.1%
`4.6%
`3.8%
`
`(lJ Hepatitis C products include OL YSIO ® /SOVRIAD ® and INCIVO ®
`(2) Operational growth excludes the effect of translational currency
`
`0.6
`0.4
`0.9
`
`0.1
`0.0
`0.2
`
`2.5%
`3.3%
`2.0%
`
`2.5%
`3.3%
`2.0%
`
`0.3
`0.2
`0.4
`
`0.2
`0.3
`0.0
`
`0.0
`0.0
`0.1
`
`3.8%
`4.8%
`2.8%
`
`2.7
`5.8
`0.2
`
`4.5%
`8.4%
`1.3%
`
`6.5%
`10.6%
`3.0%
`
`0.3
`0.6
`0.0
`
`4.5%
`5.8%
`3.0%
`
`6.5
`12.3
`0.3
`
`10.7%
`17.5%
`3.3%
`
`11.0%
`18.1%
`3.3%
`
`FOURTH QUARTER
`
`TWELVE MONTHS
`
`REPORTED SALES vs. PRIOR PERIOD /SMMl
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`$
`
`$
`
`103
`381
`484
`
`170
`238
`408
`
`382
`663
`1,045
`
`96
`428
`524
`
`150
`264
`414
`
`362
`711
`1,073
`
`7.3%
`-11.0%
`-7.6%
`
`13.3%
`-9.8%
`-1.4%
`
`5.5%
`-6.8%
`-2.6%
`
`7.3%
`2.8%
`3.7%
`
`13.3%
`5.2%
`8.2%
`
`5.5%
`9.4%
`8.2%
`
`-13.8%
`-11.3%
`
`-15.0%
`-9.6%
`
`-16.2%
`-10.8%
`
`421
`
`407
`
`3.4%
`
`1,623 ~ -11.4%
`
`2,044
`
`2,239
`
`-8.7%
`
`629
`
`600
`
`4.8%
`
`951 ~ -9.2%
`
`1,580
`
`1,647
`
`-4.1%
`
`1,536
`
`1,357
`
`13.2%
`
`2,439 ~ -11.3%
`
`3,975
`
`4,106
`
`-3.2%
`
`3.4%
`0.7%
`1.2%
`
`4.8%
`5.5%
`5.2%
`
`-12.1%
`-9.9%
`
`-14.7%
`-9.3%
`
`CONSUMER SEGMENT ill
`BABY CARE
`us
`Intl
`WW
`ORAL CARE
`us
`Intl
`WW
`OTC
`us
`Intl
`WW
`SKIN CARE
`us
`Intl
`WW
`WOMEN'S HEAL TH
`us
`Intl WW
`WOUND CARE / OTHER
`us
`Intl
`WW
`
`TOTAL CONSUMER
`us
`Intl
`WW
`
`439
`432
`871
`
`7
`276
`283
`
`130
`99
`229
`
`471
`485
`956
`
`7
`301
`308
`
`208
`123
`331
`
`-6.8%
`-10.9%
`-8.9%
`
`0.0%
`-8.3%
`-8.1%
`
`-37.5%
`-19.5%
`-30.8%
`
`1,231
`
`1,294
`
`-4.9%
`
`2,089 ~ -9.6%
`$ 3,320
`
`3,606
`
`-7.9%
`
`-6.8%
`4.6%
`-11%
`
`0.0%
`7.5%
`7.4%
`
`-37.5%
`-8.4%
`-26.7%
`
`-4.9%
`5.5%
`1.8%
`
`-15.5%
`-7.8%
`
`-15.8%
`-15.5%
`
`-11.1%
`-4.1%
`
`-15.1%
`-9.7%
`
`1,857
`
`1,834
`
`1.3%
`
`1,674 ~ -13.0%
`
`3,531
`
`3,758
`
`-6.0%
`
`26
`1,174
`1,200
`
`753
`424
`1,177
`
`50
`-48.0%
`___gg_ -6.2%
`1,302
`-7.8%
`
`848
`596
`1,444
`
`-11.2%
`-28.9%
`-18.5%
`
`5,222
`
`5,096
`
`2.5%
`
`8,285 ~ -11.9%
`
`$ 13,507
`
`14,496
`
`-6.8%
`
`13.2%
`5.5%
`8.1%
`
`1.3%
`1.2%
`1.3%
`
`-48.0%
`9.8%
`7.6%
`
`-11.2%
`-18.3%
`-14.1%
`
`2.5%
`2.7%
`2.7%
`
`-16.8%
`-11.3%
`
`-14.2%
`-7.3%
`
`-16.0%
`-15.4%
`
`-10.6%
`-4.4%
`
`-14.6%
`-9.5%
`
`FOURTH QUARTER
`
`TWELVE MONTHS
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`REPORTED SALES vs. PRIOR PERIOD /SMMl
`
`PHARMACEUTICAL SEGMENT ill.ill
`IMMUNOLOGY
`us
`Intl
`WW
`
`$ 2,101
`670
`2,771
`
`1,816
`762
`2,578
`
`15.7%
`-12.1%
`7.5%
`
`15.7%
`2.0%
`11.7%
`
`-14.1%
`-4.2%
`
`$ 7,642
`
`7,111
`
`10,402
`
`10,193
`
`2,760 ~ -10.4%
`
`7.5%
`
`2.1%
`
`7.5%
`5.5%
`6.9%
`
`-15.9%
`-4.8%
`
`
`
`REM IC.AD E
`
`us
`US Exports <4J
`Intl
`WW
`~IMPONI / SIMPON! ARIA
`us
`Intl
`WW
`STELARA
`us
`Intl
`WW
`OTHER IMMUNOLOGY
`us
`Intl
`WW
`INFECTIOUS DISEASES
`us
`Intl
`WW
`EDURANT
`us
`Intl
`WW
`OL YSIO / SOVRIAD
`us
`Intl
`WW
`PREZISTA / PREZCOBIX / REZOLSTA
`us
`Intl
`WW
`OTHER INFECTIOUS DISEASES
`us
`Intl
`WW
`
`See footnotes at end of schedule
`
`13.4%
`1,193
`1,052
`-26.2%
`180
`244
`307 ~ -18.4%
`0.5%
`1,680
`1,672
`
`204
`136
`340
`
`24.4%
`164
`__!g_ -25.3%
`-1.7%
`346
`
`47.2%
`524
`356
`218 ~ 15.3%
`36.1%
`742
`545
`
`__ 1_5_ -40.0%
`-40.0%
`15
`
`564
`512
`1,076
`
`6
`84
`90
`
`256
`65
`321
`
`-35.6%
`-14.5%
`-25.6%
`
`100.0%
`13.1%
`18.9%
`
`-30.8%
`-86.3%
`
`363
`438
`801
`
`12
`95
`107
`
`(1)
`45
`44
`
`18.1%
`287
`243
`180 ~ -12.2%
`4.2%
`467
`448
`
`65
`118
`183
`
`59
`158
`217
`
`10.2%
`-25.3%
`-15.7%
`
`13.4%
`-26.2%
`-3.9%
`3.8%
`
`24.4%
`-14.8%
`3.8%
`
`47.2%
`32.4%
`42.0%
`
`-27.7%
`-27.7%
`
`-35.6%
`-3.6%
`-20.4%
`
`100.0%
`29.3%
`34.0%
`
`-27.0%
`-85.5%
`
`18.1%
`-0.2%
`9.7%
`
`10.2%
`-15.6%
`-8.7%
`
`-14.5%
`-3.3%
`
`-10.5%
`-5.5%
`
`-171%
`-5.9%
`
`-12.3%
`-12.3%
`
`-10.9%
`-5.2%
`
`-16.2%
`-15.1%
`
`-3.8%
`-0.8%
`
`-12.0%
`-5.5%
`
`-9.7%
`-7.0%
`
`7.2%
`4,453
`4,155
`-27.5%
`782
`1,078
`1,326 ~ -18.9%
`-4.5%
`6,561
`6,868
`
`730
`598
`1,328
`
`1,677
`797
`2,474
`
`39
`39
`
`544
`643
`1,187
`
`1,334
`738
`2,072
`
`34.2%
`-7.0%
`11.9%
`
`25.7%
`8.0%
`19.4%
`
`66
`66
`
`-40.9%
`-40.9%
`
`-50.7%
`1,535
`3,112
`2,121 ~ -14.7%
`-34.7%
`3,656
`5,599
`
`70.8%
`24
`41
`369 ~ 8.2%
`12.3%
`410
`365
`
`173
`448
`621
`
`1,943
`359
`2,302
`
`-911%
`24.8%
`-73.0%
`
`14.4%
`1,064
`930
`746 __ 9_0_1_ -17.2%
`-11%
`1,810
`1,831
`
`257
`558
`815
`
`215
`886
`1,101
`
`19.5%
`-37.0%
`-26.0%
`
`7.2%
`-27.5%
`-4.7%
`-1.1%
`
`34.2%
`10.2%
`21.2%
`
`25.7%
`27.0%
`26.2%
`
`-30.6%
`-30.6%
`
`-50.7%
`1.2%
`-27.6%
`
`70.8%
`29.2%
`31.9%
`
`-91.1%
`49.1%
`-69.2%
`
`14.4%
`-1.6%
`6.6%
`
`19.5%
`-26.2%
`-17.3%
`
`-14.2%
`-3.4%
`
`-17.2%
`-9.3%
`
`-19.0%
`-6.8%
`
`-10.3%
`-10.3%
`
`-15.9%
`-71%
`
`-21.0%
`-19.6%
`
`-24.3%
`-3.8%
`
`-15.6%
`-7.7%
`
`-10.8%
`-8.7%
`
`FOURTH QUARTER
`
`TWELVE MONTHS
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`2015
`
`2014
`
`% Change
`Reported Operational ill Currency
`
`REPORTED SALES vs PRIOR PERIOD ISM Ml
`
`16.2%
`2,452
`2,850
`3,409 ~ -15.5%
`-3.5%
`6,259
`6,487
`
`NEUROSCIENCE
`us
`Intl
`WW
`CONCERTA / METHYLPHENIDATE
`us
`Intl
`WW
`INVEGA / PALIPERIDONE
`us
`Intl
`WW
`INVEGA SUSTENNA / XEPLION / INVEGA
`TRINZA
`us
`Intl
`WW
`RISPERDAL CONSTA
`us
`Intl
`WW
`OTHER NEUROSQENCE
`us
`Intl
`WW
`ONCOLOGY
`us
`Intl
`WW
`IMBRWlCA
`us
`Intl
`WW
`VELCADE
`us
`Intl
`WW
`ZVTIGA
`us
`Intl
`WW
`OTHER ONCOLOGY
`
`16.6%
`752
`645
`849 ~ -15.6%
`-3.0%
`1,601
`1,651
`
`16.6%
`-4.2%
`3.9%
`
`-11.4%
`-6.9%
`
`117
`96
`213
`
`58
`55
`113
`
`327
`197
`524
`
`103
`131
`234
`
`147
`370
`517
`
`55
`114
`169
`
`96
`65
`161
`
`226
`192
`418
`
`104
`190
`294
`
`164
`445
`609
`
`457
`816
`1,273
`
`334
`878
`1,212
`
`122
`113
`235
`
`321
`321
`
`286
`295
`581
`
`64
`28
`92
`
`418
`418
`
`255
`340
`595
`
`-15.8%
`26.0%
`
`-39.6%
`-15.4%
`-29.8%
`
`44.7%
`2.6%
`25.4%
`
`-1.0%
`-31.1%
`-20.4%
`
`-10.4%
`-16.9%
`-15.1%
`
`36.8%
`-71%
`5.0%
`
`90.6%
`
`-23.2%
`-23.2%
`
`12.2%
`-13.2%
`-2.4%
`
`-4.0%
`33.9%
`
`-11.8%
`-7.9%
`
`-39.6%
`-5.6%
`-25.9%
`
`44.7%
`17.7%
`32.4%
`
`-1.0%
`-21.2%
`-14.0%
`
`-10.4%
`-6.3%
`-7.4%
`
`36.8%
`6.5%
`14.8%
`
`90.6%
`
`-13.5%
`-13.5%
`
`12.2%
`0.2%
`5.3%
`
`-9.8%
`-3.9%
`
`-15.1%
`-7.0%
`
`-9.9%
`-6.4%
`
`-10.6%
`-7.7%
`
`-13.6%
`-9.8%
`
`..
`..
`
`-9.7%
`-