(l;oi’:41:u1t.t(lci’w:aoit
`in
`t.«
`January 20, 2015
`
`
`
`Johnson & Johnson Reports 2014 Fourth-Quarter and Full-Year Results:
`
`2014 Fourth-Quarter Sales of $18.3 Billion Decreased 0.6%; EPS was $0.89
`2014 Full-Year Sales of $74.3 Billion increased 4.2%; Full-Year EPS was $5.70
`it
`Excluding Special Items, 2014 Fourth-Quarter EPS was $1.27, an Increase of 2.4%‘, and 2014 Full-Year EPS was $5.97, an increase of 8.2%
`
`NEW BRUNSWICK. N.J., Jan. 20, 2015 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $18.3 billion for the fourth quarter of 2014. a
`decrease of 0.6% as compared to the fourth quarter of 2013. Operational results increased 3.9% and the negative impact of currency was 4.5%. Domestic sales
`increased 7.4%. international sales decreased 6.7%, reflecting operational growth of 1.2% and a negative currency impact of 7.9%. Excluding the net impact of
`acquisitions and divestitures, on an operational basis, worldwide sales increased 6.7%, domestic sales increased 10.7% and intemational sales increased 3.6%.‘
`
`Worldwide sales for the full—year 2014 were $74.3 billion, an increase of4.2% versus 2013. Operational results increased 6.1% and the negative impact of currency
`was 1.9%. Domestic sales increased 9.0%. international sales increased 0.4%, reflecting operational growth of 3.7% and a negative currency impact of 3.3%.
`Excluding the net impact of acquisitions and divestitures. on an operational basis, worldwide sales increased 8.0%. domestic sales increased 11.6% and international
`sales increased 5.1%.‘
`
`Net earnings and diluted earnings per share for the fourth quarter of 2014 were $2.5 billion and $0.89. respectively. Fourth-quarter 2014 net earnings included a
`charge for after-tax special items of approximately $1.1 billion, primarily related to an increase in the litigation accrual, integration costs related to the acquisition of
`Synthes, lnc., and an in-process research and development charge. Fourth—quarter 2013 net earnings included a net charge for after-tax special items of $42 million
`as shown in the accompanying reconciliation of non-GAAP financial measures. Excluding these special items, net earnings for the current quarter were $3.6 billion
`and diluted earnings per share were $1.27, representing increases of 1.4% and 2.4%, respectively. as compared to the same period in 2013.‘
`
`Net earnings and diluted earnings per share for the full-year 2014 were $16.3 billion and $5.70, respectively. Ful|—year net earnings included a net charge for after-tax
`special items of $0.8 billion in 2014 and $2.0 blHion in 2013 as detailed in the accompanying reconciliation of non-GAAP financial measures. Excluding these special
`items in both periods, net eamlngs for the full-year of 2014 were $17.1 billion and diluted earnings per share were $5.97. representing increases of 7.7% and 8.2%,
`respectively, as compared with the full year of 2013.‘
`
`"2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term.
`We have built significant momentum in our Pharmaceutical business, are realizing the benefits of innovation, scale and breadth in our Medical Devices business and
`are continuing our market leadership with iconic brands in our Consumer business.“ said Alex Gorsky. Chairman and Chief Executive Ofiicer. "I am proud of our
`exceptional Johnson & Johnson colleagues who make our success possible with their commltrnent to advancing health and weil—being for patients and consumers
`around the world.”
`
`The Company announced adjusted earnings guidance for full-year 2015 of $6.12 to $6.27 per share. Beginning in 2015, adjusted earnings excludes after-tax
`intangible amortization expense in addition to special items. After—tax intangible amortization expense for 2014 was approximately $0.42 per share and for 2015 is
`anticipated to be approximately $0.32 per share.
`
`Worldwide Consumer sales of $14.5 billion for the full-year 2014 represented a decrease of 1.4% versus the prior year, consisting of an operational increase of 1.0%
`and a negative impact from currency of 2.4%. Domestic sales decreased 13%; international sales decreased 1.4%. which reflected an operational increase of 2.3%
`and a negative currency impact of 3.7%. Excluding the net impact of acquisitions and divestitures. on anioperational basis, worldwide sales increased 2.8%, domestic
`sales increased 3.1% and international sales increased 2.6%.‘
`
`Positive contributors to operational results were sales of TYLENOL® and MOTR|N® analgesics and ZYRTEC® allergy over-the—counter products; AVEENO® and
`NEUTROGENA® skin care products: and LlSTERiNE® oral care products.
`
`Worldwide Pharmaceutical sales of $32.3 billion for the full-year 2014 represented an increase of 14.9% versus the prior year with operational growth of 16.5% and a
`negative impact from currency of 1.6%. Domestic sales increased 25.0%; international sales increased 5.0%, which reflected an operational increase of 8.3% and a
`negative currency impact of 3.3%.
`
`The strong sales results were driven by new products and the strength of our core products. New products include OLYS|O®/SOVRlAD® (simeprevir), for combination
`treatment of chronic hepatitis C in adult patients; XARELTO® (rivaroxaban), an oral anticoagulant; ZYTiGA® (abiraterone acetate), an oral. once-daily medication for
`use in combination with prednlsone for the treatment of metastatic, castration-resistant prostate cancer; |NVOKANA® (canagliflozin), for the treatment of adults with
`type 2 diabetes; and lMBRUVlCA® (ibrutinib), an oral. once-daily therapy approved for use in treating certain B~cell malignancies, or blood cancers.
`
`Additional contributors to operational sales growth were STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and
`psoriatlc arthritis; lNVEGA® SUSTENNA®/XEPLlON® (paiiperldone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the treatment of
`schizophrenia in adults: S|MPONl®ISlMPONl ARiA® (golimumab) and REM|CADE® (infliximab), bioiogics approved for the treatment of a number of immune-mediated
`inflammatory diseases.
`
`During the quarter. the U.S. Food and Drug Administration (FDA) granted approval forlhe supplemental New Drug Applications (sNDAs) for |NVEGA® SUSTENNA®
`(paiiperldone paimitate) to treat schizoaffective disorder as either monolherapy or adjunctive therapy. The European Commission approved lMBRUVICA® (ibrutinib)
`for the treatment oi adult patients with relapsed or refractory mantle cell lymphoma and adult patients with chronic lymphocytic leukemia who have received at least
`one prior therapy, or in first-line in the presence of 17p deletion or TP53 mutation in patients unsuitable for chemo-immunotherapy. The European Commission also
`approved REZOLSTA® (darunavir/cobicistat) in combination with other antiretroviral medicinal products for the treatment of human immunodeficiency virus-l infection
`in adults aged 18 years or older. in addition. VELCADE®(bor1ezomib) received a positive opinion from the European Committee for Medicinal Products for use in
`combination with rituximab, cyciophosphamide, doxorubicin and prednisone. for the treatment of adult patients with previously untreated mantle cell lymphoma who are
`unsuitable for haematopoietlc stem cell transplantation.
`
`Two New Drug Applications (NDAs) were submitted to the FDA for regulatory approval during the quarter. These included an NDA for three-month atypical
`antipsychotic pallperidone palmitate as a treatment for schizophrenia in adults as well as an NDA for YONDELIS® (trabectedin) for the treatment of patients with
`advanced soft tissue sarcoma, including liposarcoma and ieiomyosarcoma subtypes. who have received prior chemotherapy including an anthracycline. Also, a
`JANSSEN EXHIBIT 2035
`
`Mylan v. Janssen IPR2016-01332
`
`JANSSEN EXHIBIT 2035
`Mylan v. Janssen IPR2016-01332
`
`

`

`A
`
`supplemental NDA was submitted to the FDA and a Type II variation application was submitted to the European Medicines Agency (EMA) for an additional indication of
`|MBRUVlCA® (ibrutinib) for the treatment of patients with Waldenstrom's macroglobulinemia, a rare type of B-cell lymphoma.
`
`in addition, the acquisition of Alios BioPharma, lnc., a privately-held clinical stage biopharmaceutical company focused on developing therapies for viral diseases, was
`completed. In January, a definitive agreement was announced to divest the U.S. license rights to NUCYNTA® (tapentadol), NUCYNTA® ER (tapentadol extended-
`release tablets), and NUCYNTA® (tapentadol) oral solution for approximately $1.05 billion. The transaction is expected to close in the second quarter, subject to
`customary closing conditions and completion of financing.
`
`Worldwide Medical Devices sales of $27.5 billion for the iull—year 2014 represented a decrease of 3.4% versus the prior year consisting of an operational decrease of
`1.6% and a negative currency impact of 1.8%. Domestic sales decreased 4.3%; international sales decreased 2.7%, which reflected an operational increase of 0.5%
`and a negative currency impact of 3.2%. Excluding the net impact of acquisitions and divestitures. on an operational basis, worldwide sales increased 1.6%, domestic
`sales decreased 0.5% and international sales increased 3.5%.‘ The divestiture of the Ortho-Clinical Diagnostics business was completed in June.
`
`Primary contributors to operational growth were our broad portfolio of Orthopaedic products: Blosense Webster's electrophysiology products in the Cardiovascular
`Care business; and biosurgicals and international sales of energy products in the Specialty Surgery business.
`
`During the quarter, the FDA approved the Animas® Vibe” insulin pump and Continuous Glucose Monitoring system for the management of insulirequiring diabetes
`in adults ages 18 and older.
`
`About Johnson 8. Johnson
`Caring for the world. one person at a time, inspires and unites the people of Johnson 8. Johnson. We embrace research and science - bringing innovative ideas,
`products and services to advance the health and well-being of people. Our approximately 126,500 employees at more than 265 Johnson & Johnson operating
`companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.
`
`* Operational sales growth excluding the net impact of acquisitions and divestitures as well as net earnings and diluted earnings per share excluding 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. 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 invegtgrjn‘ ggm.
`
`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.investgr.‘n‘.com. A replay and podcast will be available
`approximately two hours after the live webcast by visiting wvwv investor.'n' com.
`
`Copies of the financial schedules accompanying this press release are available at mwfinveslgr 'ni.§p_r_r1[hi§tgrical—§a esgim. 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 8. Johnson, including 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 websiteat
`
`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. The reader is cautioned not to rely on these forvvard-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; uncertainty of commercial success for
`new and existing products; impact of business combinations and divestitures: challenges inherent in new product development, including obtaining regulatory
`approvals; challenges to patents; the impact of patent expirations; significant adverse litigation or govemmenl action, including related to product liability claims;
`changes to laws and regulations, including domestic and foreign health care reforms; changes in behavior and spending patterns or financial distress of purchasers
`of health care products and services; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; financial
`instability of international economies and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; and product efficacy or safety
`concerns resulting in product recalls or regulatory action. A further list and description of these risks, uncertainties and other factors can be found in Johnson 8.
`Johnson's Annual Report on Form 10-K for the fiscal year ended December 29, 2013, 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.inve§tgr,‘ni,ggm 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 & Johnson does not undertake to update any tom/ard-looking
`statements as a result of new information or future events or developments.
`
`Johnson & Johnson and Subsidiaries
` Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`FOURTH QUARTER
`TWELVE MONTHS
`Percent Change
`Percent Change
`Operations
`Operations
`
`Currengy
`
`2014
`
`2013
`
`Total
`
`Currency
`
`2014
`
`2013
`
`Total
`
`Sales to customers by
`segment of business
`Consumer
`U5.
`international
`
`Pharmaceutical
`U S.
`International
`
`Medical Devices
`U.S.
`international
`
`U.S,
`
`5 1,294
`2,312
`3,606
`
`6,356
`3,643
`7,999
`
`2.954
`3,895
`6,649
`
`8,504
`
`1,263
`2,490
`3.753
`
`3,551
`3,745
`7,298
`
`3,200
`4,106
`7,306
`
`8.014
`
`2 5 %
`7 1
`(3 9)
`
`22.7
`(2.7)
`9.6
`
`(7.7)
`10.0
`9.0
`
`7 4
`
`2.5
`O 1
`0.9
`
`22 7
`5.8
`13.9
`
`(7 7)
`2.3
`4.7)
`
`7.4
`
`-
`7.2
`(4 8)
`
`~
`(85)
`4.3
`
`-
`7.7
`4.3
`
`-
`
`5 5,096
`3.400
`14,465
`
`17.432
`14.881
`32,313
`
`12,254
`15,288
`27,522
`
`34,782
`
`5,162
`9,535
`14,697
`
`13,948
`14.177
`23,125
`
`12,800
`15,690
`28,490
`
`31,910
`
`(1.3) %
`(1.4)
`(1.4)
`
`25.0
`5.0
`14.9
`
`(4.3)
`(2.7
`3.4
`
`9.0
`
`(1,3)
`2.3
`1.0
`
`25.0
`8.3
`16.5
`
`(4.3)
`0 5
`1.8
`
`9.0
`
`-
`3,7
`(2,4)
`
`-
`(3.3)
`(1,6)
`
`4
`(3.2
`(1 8
`
`-
`
`

`

`International
`Worldwide
`
`9.550
`$18,254
`
`10,341
`15,355
`
`(5.7
`(0.8)
`
`°/a
`
`1.2
`3.9
`
`7.9)
`4.5)
`
`39,549
`$74,331
`
`39,402
`71,312
`
`0.4
`4.2 %
`
`3.7
`6.1
`
`(3.3)
`(1.9)
`
`
`Johnson 8. Johnson and Subsidiaries
`Supplementary Sales Data
`
`
`(Unaudited: Dollars in Millions)
`FOURTH QUARTER
`
`Percent Change
`2014
`2013
`Totai
`Operations
`Currency
`
`Sales to customers by
`geographic area
`
`2014
`
`
`TWELVE MONTHS
`Percent Change
`Operations
`
`2013
`
`Total
`
`Currency
`
`US.
`
`Europe
`Western Hemisphere excluding U.S.
`A$ia—Par:ific. Africa
`international
`
`Worldwide
`
`5 3.604
`
`3,014
`
`7.4 %
`
`4,560
`1,752
`3,300
`9.650
`
`$13,254
`
`4,960
`1,891
`3,432
`10,341
`
`16,355
`
`(3.2)
`(5.8)
`(5.0)
`(6.7)
`
`(0.6)
`
`“/o
`
`7.4
`
`0.6
`3.9
`0.5
`1 2
`
`3.9
`
`-
`
`3 34.732
`
`31,910
`
`9.0 %
`
`(8.6)
`(9.7)
`(5.6)
`(7.9
`
`(4.5)
`
`18,947
`7,160
`13.442
`35,549
`
`$74,331
`
`15,599
`7,421
`13.352
`39,402
`
`71,312
`
`1.9
`(3.5)
`0.4
`0.4
`
`4.2 %
`
`9.0
`
`2.6
`5.2
`4.4
`3.7
`
`6.1
`
`-
`
`(0.7)
`(8.7)
`(40)
`(3.3)
`
`(1.9)
`
` Johnson 3. Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`(Unaudited: in Millions Except Per Share Figures)
`
`1
`
`2014
`
`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 ex ense. not
`Earnings before provision for taxes on income
`Provision forI(Beneiit from) taxes on income
`Net earnings
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`Effective tax rate
`
`Percent
`to Sales
`100.0
`32.1
`31.9
`14.4
`0.8
`0.7
`5.3
`14.8
`1.0
`13.8
`
`FOURTH QUARTER
`2013
`
`Amount
`3 18,355
`5.955
`5,917
`2,411
`338
`116
`868
`2,750
`(765)
`3.519
`
`5
`
`S
`
`1.23
`
`2,872.0
`
`Percent
`to Sales
`100.0
`32.5
`32.2
`13.1
`1.0
`0.6
`4.7
`15.0
`(4.2)
`19.2
`
`Percent
`increase
`(Decrease)
`(0.6)
`(1 .7)
`(1 5)
`9.3
`
`(1.7)
`
`(25.4)
`
`(27.6)
`
`Amount
`5 18,254
`5,853
`5,822
`2.635
`156
`122
`963
`2,703
`182
`2.521
`
`5
`
`S
`
`0.89
`
`2,045.3
`
`6.7
`
`5‘.
`
`(28.0)
`
`'1.
`
`Adjusted earnings before provision for taxes and net earnings”
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Effective tax rate
`
`3
`5
`5
`
`3,925
`3.612
`1.27
`8.0
`
`V.
`
`'/.
`
`21.5
`19.8
`
`3
`5
`S
`
`3,909
`3,551
`124
`8.9
`
`(“See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson It Johnson and Subuidiaries
`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
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earning:
`
`Net earnings per share (Diluted)
`
`Average shares outstanding (Diluted)
`
`2014
`
`Percent
`to Sales
`100.0
`30.8
`29.5
`11.4
`0.3
`0.6
`(0.1)
`27.7
`5.7
`22.0
`
`Amount
`S 74,331
`22,746
`21,954
`8.494
`118
`466
`(70)
`20,563
`4,240
`3 10,323
`
`$
`
`5.70
`
`2,863.9
`
`TWELVE MONTHS
`
`2013
`
`Amount
`S 71,312
`22,342
`21.030
`8,183
`580
`408
`2.498
`15,471
`1,640
`$ 13,831
`
`5
`
`4.81
`
`2,877.0
`
`Percent
`to Sales
`100.0
`31.3
`30.6
`11.5
`0.8
`0.6
`3.5
`21.7
`2.3
`19.4
`
`Percent
`increase
`Decrease)
`4.2
`1.8
`0.6
`3.6
`
`32.9
`
`18.0
`
`18.5
`
`

`

`Effactlvo tax rate
`
`20.5
`
`'/e
`
`10.6
`
`"/-
`
`Adiusted earnings before provision for taxes and net earnings W
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Eflectlva tax rate
`
`5 21.195
`5 17.105
`3
`5.97
`19.3
`
`'/o
`
`
`
`5 19,169
`5 15.876
`5
`5.52
`17.2
`
`‘/a
`
`‘T’ See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measures
`
`(Dollars in Millions Exceg! Per Share Data)
`
`Earnings before provision for taxes on income - as reported
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`Litigation expenses
`
`Synthes integration/transaction costs
`
`Fourth Quarter
`
`2014
`
`5
`
`2.703
`
`49
`
`692
`
`325
`
`-
`
`2013
`
`2,750
`
`-
`
`508
`
`181
`
`—
`
`% lncrt I
`(Decr.
`
`32.9
`
`%
`
`% incr, /
`
`(Dear)
`
`Twelve Months
`
`2014
`
`(117) %
`
`5 20.563
`
`(1.899)
`
`1.253
`
`754
`
`220
`
`2013
`
`15,471
`
`-
`
`2,282
`
`683
`
`—
`
`Additional year of Branded Prescription Drug Fee
`
`In-process research and development
`
`DePuy AsR""Hip program
`
`Other
`
`Earnings before provision for taxes on income - as adjusted
`
`Net Earnings - as reported
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`Litigation expenses
`
`Synthes integration/transaction costs
`
`156
`
`—
`
`-
`
`5
`
`3
`
`3,925
`
`2.521
`
`B7
`
`652
`
`237
`
`338
`
`134
`
`-
`
`3.909
`
`3,519
`
`-
`
`227
`
`110
`
`178
`
`126
`
`-
`
`0.4
`
`“/a
`
`S 21,195
`
`(26.4) %
`
`5 16,323
`
`(1 ,062)
`
`S80
`
`251
`
`(95)
`
`19.169
`
`13,831
`
`~
`
`1,225
`
`(1)
`
`1.646
`
`555
`
`483
`
`-
`
`10.6
`
`180
`
`"fa
`al/0
`
`Additional year of Branded Prescription Drug Fee
`
`ln«process research and development
`
`DePuy AsR""Hip program
`
`Tax benefit associated with Connr Medsystems
`
`Scios tax benefit
`
`Other
`
`Net Earnings - as adjusted
`
`Diluted Net Earnings per share - as reported
`
`Ortho-Clinical Diagnostics divestiture net (gain)/expense
`
`‘
`
`115
`
`.
`
`-
`
`-
`
`~
`
`5
`
`3.612
`
`S
`
`0.39
`
`0,03
`
`’
`
`294
`
`113
`
`-
`
`(707)
`
`-
`
`3.561
`
`1.23
`
`-
`
`220
`
`131
`
`m
`
`(398)
`
`-
`
`-
`
`462
`
`240
`
`-
`
`(707)
`
`(79)
`
`1.4 %
`
`S 17.105
`
`15.876
`
`(27.6)
`
`"/1:
`
`S
`
`5.70
`
`(0.37)
`
`4.81
`
`-
`
`0.57
`
`Litigation expenses
`
`Synthes integration/transaction costs
`
`Additional year at Branded Prescription Drug Fee
`
`in-process research and development
`
`DePuy ASRTMHip program
`
`Tax benefit associated with Conor Medsystems
`
`Scios Tax Benefit
`
`other
`
`0,23
`
`008
`
`—
`
`0.04
`
`-
`
`‘
`
`-
`
`.
`
`Diluted Net Earnings per share - as adjusted
`
`$
`
`1.27
`
`(1) Includes adjustment to deferred tax asset related to deductibility by tax jurisdiction
`
`0.08
`
`0.04
`
`-
`
`0.10
`
`0.04
`
`'
`
`(025)
`
`.
`
`1.24
`
`0,43
`
`0.19
`
`0.08
`
`0.04
`
`0.04
`
`(0.14)
`
`-
`
`—
`
`2.4
`
`‘’/a
`
`3
`
`5.97
`
`0.17
`
`-
`
`0.16
`
`005
`
`-
`
`(025)
`
`(0002)
`
`5.52
`
`8.2
`
`

`

`Johnson 5 Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measure
`
`ral
`
`Dlvnsl
`inA ii
`rw xi
`In
`a
`FOURTH QUARTER 2014 ACTUAL vs. 2013 ACTUAL
`
`ros
`
`ww As Reported:
`US,
`international
`
`Women's Health
`Sanitary Protection
`U.S.
`international
`
`Women’: Health
`K-Y *9
`U5.
`International
`
`Diagnostics
`Orlho~CIinicaI Diagnostics
`U.S.
`international
`
`Segments
`
`Consumer
`
`Operational 'l. W
`Pharmagggticai Medical Devicgs
`
`0.9%
`2.5%
`0.1%
`
`0.5
`1.4
`0.1
`
`0.5
`1.0
`03
`
`13.9-/.
`22.7%
`5.8%
`
`(4.7)-/.
`(7.7)%
`(2.3)°/u
`
`6.2
`6,7
`5.8
`
`Total
`
`3.9%
`7.4%
`1 2%
`
`0.1
`0 2
`00
`
`0.2
`O 2
`0.1
`
`2.5
`29
`2.3
`
`0.0
`0.2
`All Other Acquisitions and Divostlluros
`00
`0 0
`U5.
`international
`0.2
`0.0
`
`W Ops excluding Acquisitions and Dlvestitures
`2.1%
`13.9%
`1.5%
`6.7%
`U S.
`4.9%
`22.7%
`(1 0)%
`107%
`international
`0 7%
`5.8%
`3.5%
`3.6%
`
`(“Operational growth excludes the effect of translational currency
`
`Johnson 8» Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measure
`
`rai
`
`inA lilo an Dvesir
`ales rwhxl
`TWELVE MONTHS 2014 ACTUAL vs. 2013 ACTUAL
`
`Segments
`
`Copsumor
`
`Ogerallonai “/A W
`Pharmgceut[ca|
`Mediggl Qev gag
`
`I
`
`WW As Reported:
`us.
`international
`
`Women's Health
`Sanitary Protection
`US.
`intematianai
`
`Women's Health
`K-Y 0
`US.
`international
`
`Diagnostics
`Ortho-C/inicai Diagnostics
`US.
`lntemationai
`
`All Other Acquisitions and Dlvestltures
`US.
`lniemational
`
`WW Ops excluding Acquisitions and Divestltures
`U.S.
`international
`
`(“Operational growth excludes the effect of translational currency
`
`1.0‘/.
`(1.3)%
`2.3%
`
`1.4
`3 8
`0.1
`
`0.3
`0.6
`0.1
`
`0.1
`00
`0.1
`
`2.3%
`3.1%
`2.6%
`
`iota]
`
`6.1‘/.
`9.0%
`3.7%
`
`0.3
`0.6
`0.0
`
`0.1
`01
`0.0
`
`1.4
`1 S
`1.2
`
`0.1
`0.1
`02
`
`16.5%
`250%
`8.3%
`
`(1.6)‘/u
`(4.3)%
`0.5%
`
`3.2
`3.7
`3.0
`
`0.1
`0.1
`0.1
`
`15.6%
`25.1%
`8.4%
`
`1.6%
`(0.6)%
`3.5%
`
`8.0‘/.
`11.6%
`5.1%
`
`

`

`cousgmgn gegugm 13!
`ABY CARE
`US
`int]
`W
`ORAL CARE
`US
`Ind
`W
`9.7.9
`US
`|nU
`W
`SKQN
`US
`Int!
`W
`WQM§N'S HEAL fl
`US
`Int!
`W
`W
`US
`MN
`W
`
`TH
`
`IQIAL
`US
`lntl
`WW
`
`See footnotes at and of schedule
`
`FOURTH QUARTER
`
`1.
`“/5 Change
`Rogotteg Dgnraliogal 111 Currency
`
`201;
`
`201;
`
`Engaged Oggpational Lu Curregcx
`
`“
`
`__
`
`%————_____
`
`1,294
`2,312
`3,506
`
`1,263
`2,490
`3.753
`
`3
`
`2.570
`
`1,052
`244
`373
`1.572
`
`154
`152
`345
`
`355
`109
`545
`
`2,402
`
`992
`3137
`353
`1,712
`
`112
`142
`254
`
`255
`152
`417
`
`7.3%
`
`7.1%
`-33.5%
`3.6%
`-2.3%
`
`46.4%
`28.2%
`36.2%
`
`34 3%
`24.3%
`30.7%
`
`10.0%
`
`7.1%
`413.5%
`12.5%
`-0.4%
`
`46.4%
`39.0%
`42.2%
`
`34.3%
`34.3%
`34.4%
`
`-27%
`
`.
`-
`-9.0%
`-1.9%
`
`-
`40.8%
`-5.0%
`
`-
`-10.0%
`-3.7%
`
`348
`
`1.444
`
`5,095
`9.400
`14.496
`
`10.193
`
`4,155
`1.073
`1,335
`6,868
`
`544
`643
`1,107
`
`1,334
`730
`2.072
`
`413
`1.332
`2.295
`
`502
`1.020
`11522
`
`1,235
`2.742
`4.023
`
`1,752
`1.952
`3.704
`
`230
`1.233
`11558
`
`329
`551
`1.450
`
`5.152
`9,535
`14.597
`
`2521.:
`
`8.922391 9.p_¢r_a!i9m1.l.‘-‘J
`
`
`
`__u..9_s1Crr '1
`
`0.591
`2.599
`9.190
`
`3,1191
`1,339
`1.443
`6,673
`
`404
`523
`932
`
`957
`547
`1,504
`
`10.9%
`
`6 9%
`49.5%
`13.3%
`2.9%
`
`34.7%
`21.3%
`27.4%
`
`39.4%
`34.9%
`37.0%
`
`12.2%
`
`0.0%
`49.5%
`19.0%
`4.1%
`
`34.7%
`26.4%
`30.0%
`
`39.4%
`37.3%
`30.7%
`
`-1 3%
`
`.
`-
`5.7%
`-1 2%
`
`-
`4.5%
`-2.6%
`
`—
`-24%
`-0.9%
`
`1=H5RMAg§ymA;, §_§§M§NI L911.‘-I
`1112101102291
`us
`11111
`ww
`REM 1:40:
`05
`us Expons W
`Inn
`w
`§1MEQuJL§.lMEQmAEJA
`us
`Inll
`w
`EELABA
`us
`1111
`w
`gmgg 1MM1gNg;,gGv
`us
`Inn
`w
`gnfgcnogs ngsggsgs
`US
`11111
`w
`
`RANT
`
`us
`11111
`ww
`mgzvo
`us
`mu
`w
`Y
`
`I
`
`v
`
`1 1
`
`us
`mu
`WW
`PR
`us
`Inn
`w
`mmm
`
`-
`15
`15
`
`564
`512
`1,076
`
`5
`04
`30
`
`-
`5
`5
`
`255
`55
`321
`
`243
`205
`440
`
`-
`19
`19
`
`302
`642
`944
`
`5
`as
`73
`
`.
`107
`107
`
`13
`10
`23
`
`229
`232
`461
`
`-
`-21.1%
`-21.1%
`
`315.0%
`-20.2%
`14.0%
`
`20.0%
`23.5%
`23.3%
`
`~
`-95.3%
`-95.3%
`
`'
`'
`'
`
`5.1%
`-1 1.6%
`2.0%
`
`-
`-15.9%
`-15.9%
`
`35.3%
`-12.1%
`19.5%
`
`20.0%
`33.5%
`32.9%
`
`-
`-90.7%
`430.7%
`
`'
`-
`'
`
`6.1%
`5.5%
`1 3%
`
`-
`-5.2%
`-5.2%
`
`.
`-3.1%
`-5.5%
`
`-
`-10.3%
`-9.6%
`
`-
`-4.6%
`-4.6%
`
`-
`42.5%
`-2.5%
`
`-
`—s.1 %
`-4 1%
`
`-
`as
`as
`
`3.112
`2.437
`5,599
`
`24
`341
`365
`
`-
`223
`225
`
`1,943
`359
`2.302
`
`930
`901
`1,031
`
`-
`01
`31
`
`1,077
`2,473
`3.550
`
`15
`221
`2:15
`
`-
`517
`517
`
`1:1
`10
`23
`
`307
`056
`1.67:1
`
`-
`.1a.s%
`-10.5%
`
`'
`
`0.5%
`57.7%
`
`60.0%
`54.3%
`547%
`
`.
`56.3%
`-55.31/.
`
`~
`'
`'
`
`15 2%
`4.0%
`9.4%
`
`-
`44.3%
`-14.3%
`
`2.5%
`50.5%
`
`60.0%
`54.3%
`54.7%
`
`.
`-55.0%
`.55 0%
`
`1
`
`-
`-
`1
`
`15.2%
`5.9%
`10.4%
`
`-
`-4.2%
`-4.2%
`
`-
`-1.9%
`.0.9%
`
`-
`0.0%
`0.0%
`
`-
`.1.3%
`-1.3%
`
`.
`-23%
`-04%
`
`-
`-1.9%
`-1.0%
`
`

`

`US
`int!
`WW
`
`-
`7.3%
`7.3%
`55
`59
`
`
`153
`225
`~32.0"I7:
`--25.1“/:
`-5.9%
`
`
`280
`-24.3”/e
`49.3%
`
`
`242
`215
`550
`359
`875
`1,101
`
`
`-112°/u
`<
`41.2%
`
`-23.2%
`-212°/o
`-2.0%
`
`-20.5%
`
`
`R
`
`NC
`
`A
`
`T N
`
`X P
`
`N
`
`N
`US
`Ind
`W
`QQNQERTNMETHYLPHENIQATE
`US
`Inn
`W
`INVEGA
`US
`Infl
`W
`NV
`US
`M11
`W
`
`C-0N§ A
`
`V
`
`_' _,.4, '53‘ MM
`
`2_g
`
`545
`1.008
`1,551
`
`55
`114
`153
`
`98
`55
`161
`
`226
`192
`415
`
`104
`190
`294
`
`154
`445
`509
`
`FOURTH cumin
`
`_2_Q]_§
`
`Reported Ogeratlanal Lu Cum: ncx
`
`511
`1.040
`1.351
`
`45
`123
`159
`
`57
`57
`154
`
`133
`151
`350
`
`113
`253
`321
`
`177
`430
`557
`
`5.5%
`-3.3%
`0.0%
`
`19.5%
`'7.3°/u
`(10%
`
`10.3%
`-3.0%
`4.5%
`
`20.2%
`18.5%
`19.4%
`
`~8.0%
`-3.7%
`-8.4%
`
`-7.3%
`-73%
`-7.3%
`
`54.5%
`'21"/o
`8.9%
`-
`-202%
`-20.2%
`
`5 5%
`5.1%
`5.3%
`
`19.5%
`0.5%
`5,7%
`
`10.3"/o
`7.0%
`3.9%
`
`20.2%
`27.5%
`23,7"/a
`
`-5.0%
`-0.5%
`-3.1%
`
`~7.3%
`0.8%
`-1.4%
`
`54.5%
`5.7%
`15.0%
`-
`-12.1%
`-12.1%
`
`—
`~3.4°/n
`-5.3%
`
`-
`-7.5%
`-5.7%
`
`-
`~10.0°/n
`~4.4%
`
`-
`-9.3%
`41.3%
`
`-
`-3.2%
`'5,3%
`
`-
`-3.1%
`-5.9%
`
`-
`-3.8%
`-7.1%
`-
`>8.1%
`-3.1%
`
`_2__4
`
`2,452
`4,035
`5,487
`
`152
`447
`599
`
`350
`250
`540
`
`325
`753
`1,533
`
`427
`753
`1,190
`
`553
`1.732
`2,470
`
`1,157
`3,300
`4.457
`-
`1,515
`1,613
`
`2__§
`
`Reported Ogerallonal L11 Cugrencx
`
`2.534
`4,033
`5,557
`
`303
`474
`732
`
`316
`257
`583
`
`590
`553
`1,243
`
`440
`875
`1,313
`
`330
`1.905
`2,736
`
`845
`1.925
`3.773
`-
`1,550
`1,550
`
`~5.1°/u
`-4.2%
`-2.7%
`
`-50.5%
`-5 7%
`-23.4%
`
`13.9%
`4.9%
`9 5%
`
`19.5%
`35.7%
`27.2"/u
`
`-3 0%
`-13.1%
`~97“/n
`
`-17.1%
`'5.5‘’/:
`>9 7%
`
`35.4%
`12.5%
`15.1%
`~
`-2.5%
`»25%
`
`~51“/o
`2.2%
`-0.5%
`
`-50,5"/u
`-1.5%
`40.9%
`
`13.9%
`8.7%
`11.5%
`
`19.5%
`39.1%
`23.3%
`
`-3.0%
`-10.9%
`-5.2%
`
`-17.1%
`-2.4%
`-5.9”/u
`
`35.4%
`16.0%
`20.5%
`-
`1.1%
`1 1%
`
`-
`-3.4%
`-2.1%
`
`-
`-4.1%
`-2.5%
`
`-
`<3 8%
`-1 7%
`
`~
`-2.4%
`4.1%
`
`-
`-2.2%
`-15%
`
`-
`~4.1%
`-2.3%
`
`>
`-3.2%
`-2.5%
`-
`-35%
`-3 5%
`
`US
`Int!
`W
`OTHER NEURU3C§NC§
`Us
`Intl
`W
`NCO
`US
`Ink!
`W
`
`us
`lnli
`W
`311%
`US
`MU
`WW
`UTHER ONQOLQGY
`US
`IMI
`W
`
`TOTAL OTHER
`US
`Int!
`W
`PRQCEF/EPREE
`US
`Intl
`W
`XA
`US
`Int!
`W
`OTHER
`US
`MU
`W
`
`TO
`
`334
`373
`1.212
`-
`418
`413
`
`255
`340
`5595
`
`79
`120
`199
`
`£4
`
`597
`435
`1.432
`
`177
`125
`302
`
`423
`~
`428
`
`392
`350
`752
`
`2_0_§
`
`595
`490
`1.135
`
`163
`139
`307
`
`271
`-
`271
`
`257
`351
`503
`
`Regortecl Ogerational 113 gurrengx
`
`43.2%
`-1.0%
`25.0%
`
`5.4%
`40.1%
`-1.5%
`
`57.9%
`-
`57 9%
`
`52.5%
`215%
`23 7%
`
`22.7%
`-2.7%
`9.5%
`
`43.2%
`5.0%
`27.9%
`
`5.4%
`-3.2%
`1.5%
`
`57.9%
`-
`57.9%
`
`52.5%
`9.5%
`27.7%
`
`22.7%
`5.5%
`13.97:
`
`-
`-7.0%
`-2.9%
`
`-
`-5.9%
`-3.1%:
`
`-
`-
`-
`
`»
`-70%
`-4.0%
`
`-
`-3.5%
`-4.3%
`
`TOTAL PHARMACEUTICAL
`US
`lntl
`W
`
`See footnotes at end of schedule
`
`4,355
`3.643
`=_-—.======.==-
`7.999
`3
`
`3,551
`3,745
`7.295
`
`17,432
`14,331
`32.313
`
`13,943
`14.177
`—_—======z
`23.125
`
`3
`
`215
`397
`1.113
`-
`524
`524
`
`211
`234
`495
`
`5
`39
`94
`
`20.9%
`19.7%
`20.2%
`
`‘
`34.3%
`'
`
`20.9%
`29.9%
`25.0%
`
`43.9%
`
`'
`
`'
`
`«
`-40.2%
`-5 5%
`
`-
`3.1%
`-5.5%
`
`571
`1,255
`2,237
`
`185
`415
`502
`
`750
`548
`1.595
`
`93
`317
`415
`
`29.5%
`33.5%
`31.7%
`
`69.3%
`31.2%
`45.1%
`
`29.5%
`36.1%
`33.1%
`
`39.5%
`34.2%
`47.4%
`
`'
`-25%
`-1.4%
`
`v
`-3.0%
`-2.3%
`
`FOURTH GUARTER
`
`
`
`g_Q_1_I_!_
`
`Regonad Ogarationag 111 Qurrengx
`
`g__4_
`
`3,600
`1.977
`5,577
`
`715
`523
`1,233
`
`1,522
`-
`1,522
`
`1,353
`1,454
`2,817
`
`2,843
`2.097
`4.945
`
`795
`559
`1,354
`
`354
`-
`354
`
`1.139
`1,523
`2.717
`
`25.4%
`-5.7%
`12.8%
`
`40.1%
`-5.1%
`~92”/u
`
`75.2%
`-
`76.2%
`
`14.5%
`-4 3%
`17%
`
`25.0%
`5.0%
`14.9%
`
`25.4%
`-3.4%
`13.3%
`
`-10.1%
`~62”/o
`«8.4%
`
`75.2%
`-
`76.2%
`
`146%
`-2.4%
`5.0%
`
`25.0%
`3.3%
`15.5%
`
`~
`-2.3%
`-1.0%
`
`-
`-19%
`-0.3%
`
`-
`-
`-
`
`-
`-24%
`-1.3%
`
`-
`-3.3%
`-1.5%
`
`

`

`FOURTH QUARTER
`
`' E '
`
`,
`
`
`TWELVE MONTHS
`
`gglg
`
`gill;
`
`Regorted Ogerationa] 111 Currancx
`
`5
`
`222
`336
`553
`
`205
`308
`514
`
`-
`14
`14
`
`210
`324
`534
`
`219
`344
`563
`
`215
`251
`436
`
`5.7%
`3 7%
`4.5%
`
`-5.9%
`40.5%
`-8.7%
`
`"
`-94.4%
`-97.0%
`
`5
`
`5.7%
`12.4%
`9.3%
`
`*5.9%
`4.5%
`-3.2%
`
`"
`
`-90,5”/n
`—94.9"/o
`
`24%
`3.3%
`2.3%
`
`<
`43.7%
`-5.3%
`
`-
`-9.0%
`-5 5%
`
`-
`-3.9%
`-2.1%
`
`-
`7.4%
`-3.4%
`
`_2____5
`
`852
`1,345
`2,203
`
`354
`1.273
`2,142
`
`455
`505
`962
`
`5,197
`4,473
`9,575
`
`ggl;
`
`Regortad Ogerational 111 Currency;
`
`803
`1,259
`2.077
`
`998
`1.311
`2,309
`
`926
`959
`1.335
`
`5.074
`4.435
`9,509
`
`5.7%
`61%
`63%
`
`43.4%
`-2,5"/o
`v7 2%
`
`60.8"/a
`-47 2%
`~4/9.0%
`
`2.4%
`1.0%
`1.7%
`
`5.7%
`9.4%
`8.3%
`
`-13.4 "A:
`0.8%
`-53%
`
`A50.8°/a
`-44 9%
`-47.3“/n
`
`2.4%
`35%
`2.9%
`
`-
`-3.3%
`-2.0%
`
`~
`-13%
`-1.9%
`
`~
`-2,3"/n
`-1.2%
`
`-
`~Z.5%
`~12“/a
`
`CS
`
`MEDIQAL ogvigss i£U2L11l
`CARD UVA§§ULAR CARE
`US
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`US
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`US
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`
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`
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`lntl
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`
`1,339
`1.102
`2,441
`
`425
`479
`904
`
`507
`1,005
`1,572
`
`195
`451
`646
`
`2,954
`3.695
`6.649
`
`5
`
`1,307
`1.149
`2,453
`
`422
`507
`929
`
`599
`1,040
`1.639
`
`220
`491
`719
`
`3.200
`4,105
`7.305
`
`2.4%
`-4.1%
`-05%
`
`0.7%
`-5.5%
`-27%
`
`-5 3%
`41.4%
`‘4.1°/o
`
`-14.5%
`-8.1%
`-10.2%
`
`-7.7’/n
`-10.0‘/n
`-9.0%
`
`0.7%
`21%
`1.5%
`
`-5.3%
`40%
`0.5%
`
`"V3.5"/o
`1 7%
`-3.5%
`
`-7.7‘/n
`-2.3%
`-4.7%
`
`v
`~7.5"/is
`-4.2%
`
`-
`-7.4%
`-4 .7%
`
`-
`-9.8%
`-6.7%
`
`-
`-71%
`-4.3%
`
`1.879
`1,862
`3,541
`
`2,221
`3,955
`5,175
`
`575
`1,343
`2,318
`
`1,634
`1.340
`3.504
`
`2,294
`3.975
`5.269
`
`1.035
`1,901
`2,937
`
`12.300
`12.254
`15.590
`15,263
`._.__......__. =_..__..
`27.522
`28,490
`3
`
`03%
`1.2%
`1.1%
`
`-3.2%
`-0.5%
`-1.5%
`
`-5.9%
`-3.1%
`-41%
`
`-4.3%
`-2.7%
`-3.4%
`
`0.9%
`4.9%
`3.0%
`
`-3.2%
`25%
`0.5%
`
`-5.9%
`17%
`-1.0%
`
`-4.3%
`0.5%
`-1.5%
`
`-
`-3.7%
`-1 3%
`
`—
`-3.1%
`-2.0%
`
`-
`-4.8%
`-3,1°/1:
`
`-
`-32%
`-1.5%
`
`‘ Percentage greater than 100%
`" Nut meaningful
`(1) Operational growth excludes the effect of translational currency
`(2) Unaudited
`(3) Prior year amounts have been reclassified to conform to current year product disclosure
`(4) Reported as U.S. sales
`(5) Reflects Diagnostics divestiture June 30, 2014
`(6) lnlection Prevention now reflected in Specialty Surgery/Other. previously reported independently
`(7) Previously referred to as Medical Devices and Diagnostics
`
` To view the original version on PR Newswire, visil:htt ://
`
`
`3OOQ227§8.htmi
`
`SOURCE Johnson & Johnson
`
`News Provided by Acquire Media
`
`