l'Ofiti141314 . c,4` vt4cm
`
`January 24, 2017
`
`Johnson & Johnson Reports 2016 Fourth -Quarter Results:
`
`2016 Fourth -Quarter Sales of $ 18.1 Billion increased 1.7 %; EPS was $1.38
`2016 Full -Year Sales of $71.9 Billion increased 2.6 %, Full -Year EPS was $5.93
`Adjusted 2016 Fourth -Quarter EPS was $1.58, an increase of 9.7 % *, and Adjusted 2016 Full -Year EPS
`was $6.73, an increase of 8.5 %*
`Strong 2016 Full -Year Adjusted Operational Sales and EPS Growth of Approximately 7% and 9 %,
`Respectively*
`
`NEW BRUNSWICK, N.J., Jan. 24, 2017 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $18.1
`billion for the fourth quarter of 2016, an increase of 1.7% as compared to the fourth quarter of 2015. Operational sales
`results increased 2.3% and the negative impact of currency was 0.6 %. Domestic sales increased 2.6 %. International sales
`increased 0.6 %, reflecting operational growth of 1.9% and a negative currency impact of 1.3 %. As a reminder, there were
`additional shipping days in the fourth quarter of 2015 that negatively impacted the current quarter by 480 basis points.
`Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on
`an operational basis, worldwide sales increased 7.6 %, domestic sales increased 9.5% and international sales increased
`5.6 %.
`
`Worldwide sales for the full -year 2016 were $71.9 billion, an increase of 2.6% versus 2015. Operational results increased
`3.9% and the negative impact of currency was 1.3 %. Domestic sales increased 6.0 %. International sales decreased 0.9 %,
`reflecting operational growth of 1.8% and a negative currency impact of 2.7 %. The additional shipping days in 2015
`negatively impacted the current year by 130 basis points. Excluding the net impact of acquisitions, divestitures, hepatitis C,
`Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 7.4 %, domestic
`sales increased 8.9% and international sales increased 5.7 %.*
`
`Net earnings and diluted earnings per share for the fourth quarter of 2016 were $3.8 billion and $1.38, respectively. Fourth -
`quarter 2016 net earnings included after -tax intangible amortization expense of approximately $0.3 billion and a net charge
`for after -tax special items of approximately $0.3 billion. Fourth- quarter 2015 net earnings included after -tax intangible
`amortization expense of approximately $0.2 billion and a net charge for after -tax special items of approximately $0.6 billion.
`Excluding after -tax intangible amortization expense and special items, adjusted net earnings for the current quarter were
`$4.4 billion and adjusted diluted earnings per share were $1.58, representing increases of 7.9% and 9.7 %, respectively, as
`compared to the same period in 2015.* On an operational basis, adjusted diluted earnings per share also increased
`10.4 %.* A reconciliation of non -GAAP financial measures is included as an accompanying schedule.
`
`Net earnings and diluted earnings per share for the full -year 2016 were $16.5 billion and $5.93, respectively. Full -year net
`earnings included after -tax intangible amortization expense of approximately $0.9 billion and a charge for after -tax special
`items of approximately $1.3 billion. Full -year 2015 net earnings included after -tax intangible amortization expense of
`approximately $1.1 billion and a charge for after -tax special items of approximately $0.9 billion. Excluding after -tax intangible
`amortization expense and special items, adjusted net earnings for the full -year of 2016 were $18.8 billion and adjusted
`diluted earnings per share were $6.73, representing increases of 7.6% and 8.5 %, respectively, as compared to the same
`period in 2015.* On an operational basis, adjusted diluted earnings per share also increased 9.4%. *A reconciliation of non -
`GAAP financial measures is included as an accompanying schedule.
`
`"We are pleased to report that we accelerated our adjusted growth for 2016 over the prior year, and delivered a strong total
`shareholder return of greater than 15 percent. The strong adjusted sales and EPS growth was driven by the impressive
`performance of our Pharmaceutical business and continued momentum in our Medical Device business and share gains
`while improving profitability in our Consumer business," said Alex Gorsky, Chairman and Chief Executive Officer. "Looking
`forward to 2017, we expect to continue driving sustainable, long -term growth through the new products, science and
`innovation that our talented colleagues and partners of Johnson & Johnson are advancing to positively impact human
`health."
`
`The Company announced its 2017 full -year guidance for sales of $74.1 billion to $74.8 billion reflecting expected
`operational growth in the range of 4.0% to 5.0 %. Excluding the impact of acquisitions and divestitures, operational sales
`growth is expected to be in the range of 3.0% to 3.5 %.* Additionally, the Company announced adjusted earnings guidance
`for full -year 2017 of $6.93 to $7.08 per share reflecting expected operational growth in the range of 4.8% to 7.0 %.*
`Adjusted earnings guidance excludes the impact of after -tax intangible amortization expense and special items.
`
`Additionally, as part of the Company's ongoing portfolio management, the Company is announcing it is engaging in a
`process to evaluate potential strategic options for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan,
`Inc., Animas Corporation, and Calibra Medical, Inc. Strategic options may include the formation of operating partnerships,
`joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together. All options
`will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value. There can be no
`assurance that this process will result in any transaction or other strategic alternative of any kind.
`
`Exhibit ' O ` 4
`i S 14
`Date 2 O V4
`
`Wit
`
`Leslie Rockwood CSR RPR
`
`JANSSEN EXHIBIT 2014
`Wockhardt v. Janssen IPR2016-01582
`
`

`

`Worldwide Consumer sales of $13.3 billion for the full -year 2016 represented a decrease of 1.5% versus the prior year,
`consisting of an operational increase of 1.5% and a negative impact from currency of 3.0 %. Domestic sales increased 3.8 %;
`international sales decreased 4.8 %, which reflected an operational increase of 0.1% and a negative currency impact of
`4.9 %. Excluding the net impact of acquisitions, divestitures, Venezuela, and the additional shipping days in 2015, on an
`operational basis, worldwide sales increased 4.3 %, domestic sales increased 5.6% and international sales increased 3.4 % *.
`
`Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over -the -counter
`products, including TYLENOL® analgesics, digestive health products and anti -smoking aids; NEUTROGENA® and
`AVEENO® beauty products and LISTERINE® oral care products.
`
`Worldwide Pharmaceutical sales of $33.5 billion for the full -year 2016 represented an increase of 6.5% versus the prior
`year with an operational increase of 7.4% and a negative impact from currency of 0.9 %. Domestic sales increased 9.8 %;
`international sales increased 1.8 %, which reflected an operational increase of 4.0% and a negative currency impact of
`2.2 %. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in
`2015, on an operational basis, worldwide sales increased 11.5 %, domestic sales increased 13.8% and international sales
`increased 8.3 %.*
`
`Worldwide operational results, excluding the net impact of acquisitions, divestitures and hepatitis C sales, were driven by
`new products and the strength of core products. Strong growth in new products include IMBRUVICA® (ibrutinib), an oral,
`once -daily therapy approved for use in treating certain B -cell malignancies, a type of blood or lymph node cancer;
`DARZALEX®(daratumumab), for the treatment of patients with multiple myeloma; XARELTO® (rivaroxaban), an oral
`anticoagulant and INVOKANA ® /INVOKAMET® (canagliflozin), for the treatment of adults with type 2 diabetes.
`
`Additional contributors to operational sales growth included STELARA® (ustekinumab), REMICADE ®(infliximab)
`and SIMPONI ® / SIMPONI ARIA® (golimumab), biologics approved for the treatment of a number of immune -mediated
`inflammatory diseases; INVEGA®SUSTENNA ® /XEPLION ®/TRINZA ®(paliperidone palmitate), long- acting, injectable atypical
`antipsychotics for the treatment of schizophrenia in adults and EDURANT® (rilpivirine) for the treatment of HIV.
`
`Sales results were negatively impacted by generic entrants for ORTHO TRI -CYCLEN® LO (norgestimate /ethinyl estradiol)
`oral contraceptive and INVEGA® (paliperidone palmitate), long- acting, injectable atypical antipsychotics for the treatment of
`schizophrenia in adults.
`
`During the quarter, the U.S. Food and Drug Administration (FDA) approved DARZALEX® (daratumumab) in combination
`with lenalidomide and dexamethasone, or bortezomib and dexamethasone, for the treatment of patients with multiple
`myeloma who have received at least one prior therapy. The European Commission approved STELARA® for the treatment
`of adults with moderately to severely active Crohn's disease. Subsequent to the quarter, in January, the FDA approved
`IMBRUVICA® ( ibrutinib) for the treatment of patients with marginal zone lymphoma who require systemic therapy and have
`received at least one prior anti -CD20- based therapy.
`
`Additionally, regulatory applications for approval were submitted to the FDA and European Medicines Agency (EMA) for
`guselkumab for the treatment of adults living with moderate to severe plaque psoriasis. Regulatory applications for approval
`were also submitted to the FDA for SIMPONI ARIA® (golimumab) for the treatment of adults living with active psoriatic
`arthritis and the treatment of adults living with active ankylosing spondylitis and for STELARA® (ustekinumab) for the
`treatment of adolescents (12 to 17 years of age) with moderate to severe plaque psoriasis.
`
`Worldwide Medical Devices sales of $25.1 billion for the full -year 2016 represented a decrease of 0.1% versus the prior
`year consisting of an operational increase of 0.9% and a negative currency impact of 1.0 %. Domestic sales increased 1.1%;
`international sales decreased 1.2 %, which reflected an operational increase of 0.7% and a negative currency impact of
`1.9 %. Excluding the net impact of acquisitions, divestitures, Venezuela and the additional shipping days in 2015, on an
`operational basis, worldwide sales increased 3.8 %, domestic sales increased 2.9% and international sales increased 4.7 %.*
`
`Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology
`products in the Cardiovascular business; endocutters, energy and biosurgicals in the Advanced Surgery business;
`ACUVUE® contact lenses in the Vision Care business; and joint reconstruction and trauma products in the Orthopaedics
`business.
`
`During the quarter, the FDA approved OneTouch Vibe TM Plus Insulin Pump and Continuous Glucose Monitoring System for
`the treatment of patients age two and older living with diabetes.
`
`Also during the quarter, the purchase of expandable cage technologies for spinal fusion was completed, and a development
`agreement was entered into, with Interventional Spine, Inc.
`
`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 126,400 employees at more than 230 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, hepatitis C, Venezuela and the additional
`shipping days in 2015, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted
`diluted earnings per share excluding after -tax intangible amortization expense and special items, are non -GAAP financial
`measures and should not be considered replacements for, and should be read together with, the most comparable GAAP
`financial measures. Except for guidance measures, reconciliations of these non -GAAP financial measures to the most
`directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings
`
`

`

`release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not
`provide GAAP financial measures on a forward- looking basis because the company is unable to predict with reasonable
`certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition -related expenses and purchase
`accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and
`could be material to Johnson & Johnson's results computed in accordance with GAAP.
`
`Johnson & Johnson will conduct a conference call with investors to discuss this news release today at 8:30 a.m., Eastern
`Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson
`& Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live
`webcast by visiting www.investor.inj.com.
`
`Copies of the financial schedules accompanying this press release are available at www.investor.inj.com/historical-
`saies.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. i n ve sto r. jn j. ca m .
`
`NOTE TO INVESTORS CONCERNING FORWARD- LOOKING STATEMENTS
`
`This press release contains "forward- looking statements" as defined in the Private Securities Litigation Reform Act of 1995
`regarding, among other things, future operating and financial performance, product development, market position and
`business strategy. The reader is cautioned not to rely on these forward- looking statements. These statements are based on
`current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or
`uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson.
`Risks and uncertainties include, but are not limited to, economic factors, such as interest rate and currency exchange rate
`fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges
`inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory
`approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent
`expirations; the ability of the company to successfully execute strategic plans, including business plans, transactions and
`restructuring plans; market conditions and the possibility that the on -going share repurchase program may be delayed,
`suspended or discontinued; the impact of business combinations and divestitures; significant adverse litigation or
`government action, including related to product liability claims; changes to applicable laws and regulations, including tax
`laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending
`patterns or financial distress of purchasers of health care products and
`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 January 3, 2016, including in 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.inj.corn, or on request from Johnson & Johnson. Any forward- looking statement made in this
`release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward- looking
`statement as a result of new information or future events or developments.
`
`Johnson & Johnson and Subsidiaries
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`segment of business
`
`2016
`
`2015
`
`FOURTH QUARTER
`Percent Change
`Operations
`
`Total
`
`Currency
`
`2016
`
`2015
`
`TWELVE MONTHS
`Percent Change
`Operations
`
`Total
`
`Currency
`
`Consumer
`U.S.
`International
`
`Pharmaceutical
`U.S.
`International
`
`Medical Devices
`U.S.
`International
`
`U.S.
`International
`Worldwide
`
`$ 1,387
`2,045
`3,432
`
`5,002
`3,230
`8,232
`
`3,148
`3,294
`6,442
`
`1,231
`2,089
`3,320
`
`4,910
`3,154
`8,064
`
`3,152
`3,275
`6,427
`
`12.7 %
`(2.1)
`3.4
`
`1.9
`2.4
`2.1
`
`(0.1)
`0.6
`0.2
`
`9,537
`8,569
`s 18,106
`
`9,293
`8,518
`17,811
`
`2.6
`0.6
`1.7 %
`
`12.7
`0.2
`4.9
`
`1.9
`3.7
`2.6
`
`(0.1)
`1.3
`0.6
`
`2.6
`1.9
`2.3
`
`$ 5,420
`7,887
`13,307
`
`20,125
`13,339
`33,464
`
`12,266
`12,853
`25,119
`
`37,811
`34,079
`$ 71,890
`
`(2.3)
`(1.5)
`
`-
`
`(1.3)
`(0.5)
`
`(0.7)
`(0.4)
`
`(1.3)
`(0.6)
`
`5,222
`8,285
`13,507
`
`18,333
`13,097
`31,430
`
`12,132
`13,005
`25,137
`
`35,687
`34,387
`70,074
`
`3.8 %
`(4.8)
`(1.5)
`
`9.8
`1.8
`6.5
`
`1.1
`(1.2)
`(0.1)
`
`6.0
`(0.9)
`2.6 %
`
`3.8
`0.1
`
`1.5
`
`9.8
`4.0
`7.4
`
`1.1
`0.7
`0.9
`
`6.0
`1.8
`3.9
`
`(4.9)
`(3.0)
`
`(2.2)
`(0.9)
`
`(1.9)
`(1.0)
`
`-
`
`(2.7)
`(1.3)
`
`Johnson & Johnson and Subsidiaries
`
`

`

`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`geographic area
`
`2016
`
`2015
`
`FOURTH QUARTER
`Percent Change
`Operations Currency
`
`Total
`
`2016
`
`2015
`
`TWELVE MONTHS
`Percent Change
`Operations Currency
`
`Total
`
`U.S.
`
`$ 9,537
`
`9,293
`
`2.6 %
`
`2.6
`
`-
`
`$ 37,811
`
`35,687
`
`6.0 %
`
`Europe
`Western Hemisphere excluding U.S.
`Asia -Pacific, Africa
`International
`
`4,001
`1,465
`3,103
`8,569
`
`4,002
`1,442
`3,074
`8,518
`
`0.0
`1.6
`0.9
`0.6
`
`3.9
`2.4
`(0.9)
`1.9
`
`(3.9)
`(0.8)
`1.8
`(1.3)
`
`15,770
`5,734
`12,575
`34,079
`
`15,995
`6,045
`12,347
`34,387
`
`(1.4)
`(5.1)
`1.8
`(0.9)
`
`6.0
`
`1.4
`4.0
`1.4
`
`1.8
`
`Worldwide
`
`$ 18,106
`
`17,811
`
`1.7 %
`
`2.3
`
`(0.6)
`
`$ 71,890
`
`70,074
`
`2.6 %
`
`3.9
`
`(2.8)
`(9.1)
`0.4
`(2.7)
`
`(1.3)
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`(Unaudited; in Millions Except Per Share Figures)
`
`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
`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
`
`Adjusted earnings before provision for taxes and net earnings Itl
`Earnings before provision for taxes on income
`Net earnings
`Net earnings per share (Diluted)
`Effective tax rate
`
`(1)See Reconciliation of Non -GAAP Financial Measures.
`
`2016
`
`2015
`
`Amount
`$ 18,106
`5,534
`5,309
`2,640
`-
`84
`20
`195
`4,324
`510
`$ 3,814
`
`$
`
`1.38
`
`2,764.5
`
`11.8
`
`$ 5,103
`$ 4,361
`$
`1.58
`14.5
`
`Percent
`to Sales
`100.0
`30.5
`29.3
`14.6
`
`0.5
`0.1
`1.1
`23.9
`2.8
`21.1
`
`28.2
`24.1
`
`Amount
`$ 17,811
`5,673
`5,891
`2,864
`214
`107
`(1,205)
`509
`3,758
`543
`$ 3,215
`
`$
`
`1.15
`
`2,803.3
`
`14.4
`
`$ 4,913
`$ 4,043
`1.44
`$
`17.7
`
`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
`
`27.6
`22.7
`
`Percent
`Increase
`(Decrease)
`1.7
`(2.5)
`(9.9)
`(7.8)
`
`15.1
`(6.1)
`18.6
`
`20.0
`
`3.9
`7.9
`9.7
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings
`
`(Unaudited; in Millions Except Per Share Figures)
`
`TWELVE 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
`Restructuring
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnings
`
`Net earnings per share (Diluted)
`
`2016
`
`2015
`
`Amount
`$ 71,890
`21,685
`19,945
`9,095
`29
`358
`484
`491
`19,803
`3,263
`$ 16,540
`
`$
`
`5.93
`
`Percent
`to Sales
`100.0
`30.2
`27.7
`12.7
`0.0
`0.5
`0.7
`0.7
`27.5
`4.5
`23.0
`
`Amount
`$ 70,074
`21,536
`21,203
`9,046
`224
`424
`(2,064)
`509
`19,196
`3,787
`$ 15,409
`
`$
`
`5.48
`
`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
`
`Percent
`Increase
`(Decrease)
`2.6
`0.7
`(5.9)
`0.5
`
`3.2
`(13.8)
`7.3
`
`8.2
`
`

`

`Average shares outstanding (Diluted)
`
`Effective tax rate
`
`2,788.9
`
`16.5 %
`
`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
`
`$ 22,759
`$ 18,764
`6.73
`$
`17.6
`
`31.7
`26.1
`
`2,812.9
`
`19.7
`
`$ 22,003
`$ 17,445
`6.20
`$
`20.7
`
`(1)See Reconciliation of Non -GAAP Financial Measures.
`
`31.4
`24.9
`
`3.4
`7.6
`8.5
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non -GAAP Financial Measures
`
`(Dollars in Millions Except Per Share Data)
`
`Fourth Quarter
`2016
`2015
`
`%Incr. /
`(Decr.)
`
`Twelve Months
`2016
`2015
`
`% Incr. /
`(Decr.)
`
`Earnings before provision for taxes on income - as reported
`
`$ 4,324
`
`3,758
`
`15.1
`
`%
`
`$ 19,803
`
`19,196
`
`3.2
`
`Intangible asset amortization expense
`
`Restructuring/Other(1)
`
`Litigation expense, net
`
`DePuy ASRTMHip program
`
`In- process research and development
`
`Other
`
`344
`
`298
`
`96
`
`9
`
`32
`
`301
`
`590
`
`-
`
`214
`
`50
`
`1,271
`
`1,570
`
`685
`
`817
`
`9
`
`29
`
`145
`
`590
`
`141
`
`148
`
`224
`
`134
`
`Earnings before provision for taxes on income - as adjusted
`
`$ 5,103
`
`4,913
`
`3.9 %
`
`$ 22,759
`
`22,003
`
`Net Earnings - as reported
`
`$ 3,814
`
`3,215
`
`18.6
`
`%
`
`$ 16,540
`
`15,409
`
`3.4
`
`7.3
`
`Intangible asset amortization expense
`
`Restructuring /Other
`
`Litigation expense, net
`
`220
`
`415
`
`252
`
`251
`
`80
`
`931
`
`544
`
`675
`
`1,113
`
`415
`
`118
`
`DePuy ASRm Hip program
`
`In- process research and development
`
`Other
`
`7
`
`-
`
`(43)
`
`-
`
`156
`
`37
`
`7
`
`23
`
`44
`
`130
`
`162
`
`98
`
`Net Earnings - as adjusted
`
`$ 4,361
`
`4,043
`
`7.9 %
`
`$ 18,764
`
`17,445
`
`7.6
`
`8.2
`
`Diluted Net Earnings per share - as reported
`
`$ 1.38
`
`Intangible asset amortization expense
`
`Restructuring /Other
`
`Litigation expense, net
`
`DePuy ASRTMHip program
`
`In- process research and development
`
`Other
`
`Diluted Net Earnings per share - as adjusted
`
`Operational Diluted Net Earnings per share - as adjusted at 2014
`foreign currency exchange rates
`
`0.09
`
`0.09
`
`0.03
`
`-
`
`-
`
`(0.01)
`
`$ 1.58
`
`1.15
`
`0.07
`
`0.15
`
`-
`
`0.06
`
`0.01
`
`1.44
`
`1.54
`
`Impact of currency at 2015 foreign currency exchange rates
`
`0.01
`
`(0.10)
`
`20.0 %
`
`$
`
`5.93
`
`0.33
`
`0.20
`
`0.24
`
`0.01
`
`0.02
`
`5.48
`
`0.39
`
`0.15
`
`0.04
`
`0.05
`
`0.06
`
`0.03
`
`9.7 %
`
`$
`
`6.73
`
`6.20
`
`8.5
`
`6.76
`
`0.05
`
`(0.56)
`
`Operational Diluted Net Earnings per share - as adjusted at 2015
`foreign currency exchange rates
`
`$ 1.59
`
`1.44
`
`10.4 %
`
`$
`
`6.78
`
`6.20
`
`9.4
`
`(1) Includes $18M recorded in cost of products sold and $85M recorded in other (income) expense for the fourth quarter 2016,
`and $81 M recorded in cost of products sold for the fourth quarter 2015.
`Includes $45M recorded in cost of products sold and $149M recorded in other (income) expense for twelve months YTD 2016,
`
`

`

`and $81 M recorded in cost of products sold for twelve months YTD 2015.
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non -GAAP Financial Measure
`
`Operational Sales Growth Excluding Acquisitions. Divestitures. Hepatitis C Salesu. Venezuela and Additional 2015 Shipping Days
`FOURTH QUARTER 2016 ACTUAL vs. 2015 ACTUAL
`
`Segments
`
`Consumer
`
`4.9%
`12.7%
`0.2%
`
`0.5
`0.0
`0.8
`
`(2.7)
`(5.7)
`(1.0)
`
`(0.1)
`(0.3)
`0.1
`
`2.6%
`
`6.7%
`0.1%
`
`0.4
`0.0
`0.7
`
`4.6
`7.0
`3.3
`
`7.6%
`
`13.7%
`4.1%
`
`WW As Reported:
`U.S.
`International
`
`Wound Care /Other
`SPLENDA®
`U.S.
`International
`
`Cardiovascular
`Cordis
`U.S.
`International
`
`Beauty
`Vogue
`U.S.
`International
`
`Other Neuroscience
`Controlled Substance Raw Material and API Business
`U.S.
`International
`
`All Other Acquisitions and Divestitures
`U.S.
`International
`
`VOW Ops excluding Acquisitions and Divestitures
`
`U.S.
`International
`
`Hepatitis C
`U.S.
`International
`
`Venezuela
`U.S.
`International
`
`Additional 2015 Shipping Days
`U.S.
`International
`
`WW Ops excluding Acquisitions, Divestitures, Hepatitis C,
`Venezuela & Shipping Days
`
`U.S.
`International
`
`(t)Hepatitis C products include OLYSIO ® /SOVRIAD ®and INCIVO®
`(2)Operational growth excludes the effect of translational currency
`
`Pharmaceutical
`Medical Devices
`Operational %I21
`2.6%
`1.9%
`3.7%
`
`0.6%
`(0.1)%
`1.3%
`
`Total
`
`2.3%
`2.6%
`1.9%
`
`0.1
`0.0
`0.2
`
`0.0
`0.0
`0.0
`
`(0.5)
`(0.8)
`(0.3)
`
`0.5
`0.8
`0.3
`
`0.1
`(0.2)
`0.4
`
`2.5%
`
`2.4%
`2.5%
`
`0.2
`0.0
`0.5
`
`0.1
`0.0
`0.3
`
`4.8
`7.1
`2.3
`
`0.0
`0.1
`(0.1)
`
`0.3
`(0.4)
`1.0
`
`0.9%
`
`(0.4)%
`2.2%
`
`0.1
`0.0
`0.2
`
`3.7
`4.9
`2.6
`
`4.7%
`
`4.5%
`5.0%
`
`7.6%
`
`9.5%
`5.6%
`
`1.2
`1.4
`0.8
`
`0.0
`(0.1)
`0.0
`
`3.8%
`
`3.2%
`4.5%
`
`0.4
`(0.1)
`1.2
`
`0.0
`0.0
`0.2
`
`5.7
`8.7
`1.2
`
`9.9
`
`11.8%
`7.1%
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non -GAAP Financial Measure
`
`Operational Sales Growth Excluding Acquisitions. Divestitures, Hepatitis C Salesu. Venezuela and Additional 2015 Shipping Days
`
`

`

`TWELVE MONTHS 2016 ACTUAL vs. 2015 ACTUAL
`
`WW As Reported:
`U.S.
`International
`
`Wound Care /Other
`SPLENDA®
`U.S.
`International
`
`Cardiovascular
`Cordis
`U.S.
`International
`
`Beauty
`Vogue
`U.S.
`International
`
`Other Neuroscience
`Controlled Substance Raw Material and API Business
`U.S.
`International
`
`All Other Acquisitions and Divestitures
`U.S.
`International
`
`WW Ops excluding Acquisitions and Divestitures
`U.S.
`International
`
`Hepatitis C
`U.S.
`International
`
`Venezuela
`U.S.
`International
`
`Additional 2015 Shipping Days
`U.S.
`International
`
`WW Ops excluding Acquisitions, Divestitures, Hepatitis C,
`Venezuela & Shipping Days
`U.S.
`International
`
`Segments
`
`Consumer
`
`1.5%
`3.8%
`0.1%
`
`1.8
`3.4
`0.8
`
`(1.2)
`(2.8)
`(0.3)
`
`(0.1)
`(0.3)
`0.1
`
`2.0%
`
`4.1%
`0,7%
`
`1.2
`0.0
`1.9
`
`1.1
`1.5
`0.8
`
`4.3%
`
`5.6%
`3.4%
`
`Pharmaceutical
`Medical Devices
`Operational X121
`7.4%
`9.8%
`4.0%
`
`0.9%
`1.1%
`0.7%
`
`Total
`
`3.9%
`6.0%
`1.8%
`
`0.3
`0.5
`0.2
`
`0.7
`0.3
`1.0
`
`(0.2)
`(0.4)
`0.0
`
`0.2
`0.3
`0.1
`
`0.1
`0.0
`0.1
`
`5.0%
`
`6.7%
`3.2%
`
`0.8
`0.4
`1.2
`
`0.3
`0.0
`0.7
`
`1.3
`1.8
`0.6
`
`1.7
`0.8
`2.6
`
`0.1
`(0.2)
`0.3
`
`2.7%
`
`1.7%
`3.6%
`
`0.2
`0.0
`0.4
`
`0.9
`1.2
`0.7
`
`3.8%
`
`2.9%
`4.7%
`
`7.4%
`
`8.9%
`5.7%
`
`0.5
`0.7
`0.2
`
`0.1
`0.2
`0.1
`
`8.0%
`
`10.7%
`4.3%
`
`1.9
`0.7
`3.4
`
`0.1
`0.0
`0.3
`
`1.5
`2.4
`0.3
`
`11.5%
`
`13.8%
`8.3%
`
`(1)Hepatitis C products include OLYSIO ® /SOVRIAD ®and INCIVO®
`121Operational growth excludes the effect of translational currency
`
`CONSUMER SEGMENT 2-11-31
`BABY CARE
`US
`Intl
`WW
`BEAUTY
`US
`Intl
`WW
`ORAL CARE
`US
`
`Intl
`
`WW
`OTC
`US
`Intl
`
`FOURTH QUARTER
`
`TWELVE MONTHS
`
`REPORTED SALES vs. PRIOR PERIOD ($MM)
`
`2016
`
`2015
`
`Change
`Reported Operationalu Currency
`
`2016
`
`2015
`
`Change
`Reported OperationalLtl Currency
`
`$
`
`123
`370
`493
`
`580
`483
`1,063
`
`163
`234
`397
`
`418
`621
`
`126
`387
`513
`
`442
`461
`903
`
`170
`238
`408
`
`386
`632
`
`-2.4%
`-4.4%
`-3.9%
`
`31.2%
`4.8%
`17.7%
`
`-4.1%
`-1.7%
`-2.7%
`
`8.3%
`-1.7%
`
`-2.4%
`-2.2%
`-2.3%
`
`31.2 %
`6.7%
`18.7%
`
`-4.1%
`0.2%
`-1.6%
`
`8.3%
`1.5%
`
`-
`-2.2%
`-1.6%
`
`-
`-1.9%
`-1.0%
`
`-
`-1.9%
`-1.1%
`
`-
`-3.2%
`
`s
`
`488
`1,513
`2,001
`
`2,135
`1,762
`3,897
`
`648
`920
`
`1,568
`
`1,675
`2,302
`
`514
`1,643
`2,157
`
`1,861
`1,772
`3,633
`
`629
`951
`1,580
`
`1,565
`2,330
`
`-5.1%
`-7.9%
`-7.2%
`
`14.7%
`-0.6%
`7.3%
`
`3.0%
`-3.3%
`-0.8%
`
`7.0%
`-1.2%
`
`-5.1%
`-2.0%
`-2.7%
`
`14.7%
`3.7%
`9.4%
`
`3.0%
`1.4%
`2.0%
`
`7.0%
`3.4%
`
`-5.9%
`-4.5%
`
`-
`-4.3%
`-2.1%
`
`-4.7%
`-2.8%
`
`-4.6%
`
`

`

`WW
`WOMEN'S HEALTH
`US
`Intl
`WW
`WOUND CARE / OTHER
`US
`Intl
`WW
`
`TOTAL CONSUMER
`US
`Intl
`WW
`
`1,039
`
`1,018
`
`2.1 %
`
`4.1%
`
`-2.0%
`
`3
`261
`264
`
`100
`76
`176
`
`7
`276
`283
`
`100
`95
`195
`
`1,387
`2,045
`3,432
`
`$
`
`1,231
`2,089
`3,320
`
`-57.1%
`-5.4%
`-6.7%
`
`0.0%
`-20.0%
`-9.7%
`
`12.7%
`-2.1%
`
`3.4%
`
`-57.1%
`-3.1%
`-4.4%
`
`0.0%
`-19.6%
`-9.5%
`
`12.7%
`0.2%
`
`4.9%
`
`-
`-2.3%
`-2.3%
`
`-
`
`-0.4%
`-0.2%
`
`-2.3%
`-1.5%
`
`3,977
`
`19
`1,048
`1,067
`
`455
`342
`797
`
`3,895
`
`26
`1,174
`1,200
`
`627
`415
`1,042
`
`5,420
`7,887
`13,307
`
`5
`
`5,222
`8,285
`13,507
`
`2.1%
`
`-26.9%
`-10.7%
`-11.1%
`
`-27.4%
`-17.6%
`-23.5%
`
`3.8%
`-4.8%
`-1.5%
`
`4.8%
`
`-2.7%
`
`-26.9%
`-4.6%
`-5.1%
`
`-27.4%
`-14.7%
`-22.3%
`
`3.8%
`0.1%
`
`1.5%
`
`-6.1%
`-6.0%
`
`-2.9%
`-1.2%
`
`-4.9%
`-3.0%
`
`FOURTH QUARTER
`
`TWELVE MONTHS
`
`REPORTED SALES vs. PRIOR PERIOD ($MMW
`
`2016
`
`2015
`
`Reported
`
`2016
`
`Change
`erOpational Lll Currency
`
`2015
`
`Reported,
`
`% Change
`erOpationalu Currency
`
`s
`
`2,157
`779
`2,936
`
`1,173
`109
`342
`1,624
`
`243
`183
`426
`
`632
`247
`879
`
`7
`7
`
`2,101
`670
`2,771
`
`1,193
`180
`307
`1,680
`
`204
`136
`340
`
`524
`218
`742
`
`2.7%
`16.3%
`6.0%
`
`-1.7%
`-39.4%
`11.4%
`-3.3%
`
`19.1%
`34.6%
`25.3%
`
`20.6%
`13.3%
`18.5%
`
`2.7%
`16.9%
`6.1%
`
`-1.7%
`-39.4%
`11.9%
`-3.2%
`
`19.1%
`32.7%
`24.5%
`
`20.6 %
`15.6%
`19.2%
`
`-0.6%
`-0.1%
`
`-
`-
`-0.5%
`-0.1%
`
`-
`1.9%
`0.8%
`
`-
`-2.3%
`-0.7%
`
`9
`9
`
`-22.2%
`-22.2%
`
`-20.6%
`-20.6%
`
`-1.6%
`-1.6%
`
`$
`
`8,846
`3,122
`11,968
`
`4,842
`782
`1,342
`6,966
`
`959
`786
`1,745
`
`2,263
`969
`3,232
`
`25
`25
`
`7,642
`2,760
`10,402
`
`4,453
`782
`1,326
`6,561
`
`730
`598
`1,328
`
`1,677
`797
`2,474
`
`15.8%
`13.1%
`15.1%
`
`8.7%
`0.0%
`1.2%
`6.2%
`
`31.4%
`31.4%
`31.4%
`
`34.9%
`21.6%
`30.6%
`
`39
`39
`
`-35.9%
`-35.9%
`
`15.8%
`15.9%
`15.9%
`
`8.7%
`0.0%
`5.4%
`7.0%
`
`31.4%
`31.6%
`31.5%
`
`34.9%
`24.0%
`31.4%
`
`-2.8%
`-0.8%
`
`-
`-4.2%
`-0.8%
`
`-
`-0.2%
`-0.1%
`
`-2.4%
`-0.8%
`
`PHARMACEUTICAL SEGMENT 2)-(21
`IMMUNOLOGY
`US
`Intl
`WW
`REMICADE
`US
`US Exports 14)
`Intl
`WW
`SIMPONI / SIMPONI ARIA
`US
`Intl
`WW
`STELARA
`US
`Intl
`WW
`OTHER IMMUNOLOGY
`US
`Intl
`WW
`INFECTIOUS DISEASES
`US
`Intl
`WW
`EDURANT
`US
`Intl
`WW
`OLYSIO / SOVRIAD
`US
`Intl
`WW
`PREZISTA / PREZCOBIX / REZOLSTA
`US
`Intl
`WW
`OTHER INFECTIOUS DISEASES
`US
`
`Intl
`
`354
`407
`761
`
`14
`151
`165
`
`5
`5
`10
`
`283
`164
`447
`
`52
`87
`139
`
`363
`438
`801
`
`12
`95
`107
`
`(1)
`45
`44
`
`287
`180
`467
`
`65
`118
`183
`
`-2.5%
`-7.1%
`-5.0%
`
`16.7%
`58.9%
`54.2%
`
`-88.9%
`-77.3%
`
`-1.4%
`-8.9%
`-4.3%
`
`-20.0%
`-26.3%
`-24.0%
`
`-2.5%
`-5.0%
`-3.9%
`
`16.7%
`60.7%
`55.8%
`
`**
`
`-88.1%
`-76.5%
`
`-1.4%
`-6.0%
`-3.2%
`
`-20.0 %
`-24.9%
`-23.1%
`
`-
`-2.1%
`-1.1%
`
`-
`-1.8%
`-1.6%
`
`-
`-0.8%
`-0.8%
`
`-
`-2.9%
`-1.1%
`
`-
`-1.4%
`-0.9%
`
`1,461
`1,747
`3,208
`
`52
`521
`573
`
`55
`51
`106
`
`1,143
`708
`1,851
`
`211
`467
`678
`
`1,535
`2,121
`3,656
`
`41
`369
`410
`
`173
`448
`621
`
`1,064
`746
`1,810
`
`257
`558
`815
`
`-4.8%
`-17.6%
`-12.3%
`
`26.8%
`41.2%
`39.8%
`
`-68.2%
`-88.6%
`-82.9%
`
`7.4%
`-5.1%
`2.3%
`
`-17.9%
`-16.3%
`-16.8%
`
`-5.8%
`-5.8%
`
`-
`-1.9%
`-1.1%
`
`-0.7%
`-0.6%
`
`-0.5%
`-0.3%
`
`-2.8%
`-1.2%
`
`-30.1%
`-30.1%
`
`-4.8%
`-15.7%
`-11.2%
`
`26.8%
`41.9%
`40.4%
`
`-68.2%
`-88.1%
`-82.6%
`
`7.4%
`-2.3%
`3.5%
`
`-17.9%
`-13.6%
`-15.0%
`
`WW
`See footnotes at end of schedule
`
`NEUROSCIENCE
`US
`
`Intl
`WW
`CONCERTA / METHYLPHENIDATE
`US
`Intl
`WW
`INVEGA / PALIPERIDONE
`US
`
`Intl
`WW
`INVEGA SUSTENNA / XEPLION / TRINZA
`US
`Intl
`WW
`
`-
`-2.7%
`-1.8%
`
`REPORTED SALES vs. PRIOR PERIOD ($MM)
`
`2016
`
`631
`839
`1,470
`
`103
`101
`204
`
`56
`56
`
`360
`225
`585
`
`2015
`
`752
`849
`1,601
`
`117
`96
`213
`
`58
`55
`113
`
`327
`197
`524
`
`FOURTH QUARTER
`
`Change
`Reported, Operational ill Currency
`
`-16.1%
`-1.2%
`-8.2%
`
`-12.0%
`5.2%
`-4.2%
`
`1.8%
`-50.4%
`
`10.1%
`14.2%
`11.6%
`
`-16.1%
`-1.2%
`-8.2%
`
`-12.0%
`5.8%
`-3.9%
`*
`0.2%
`-51.1%
`
`10.1%
`15.8%
`12.2%
`
`-
`0.0%
`0.0%
`
`-
`-0.6%
`-0.3%
`
`-
`
`1.6%
`0.7%
`
`-
`-1.6%
`-0.6%
`
`TWELVE MONTHS
`
`2016
`
`2,628
`3,457
`6,085
`
`468
`395
`863
`
`70
`241
`311
`
`1,343
`871
`2,214
`
`2015
`
`2,850
`3,409
`6,259
`
`434
`387
`821
`
`339
`234
`573
`
`1,085
`745
`1,830
`
`Change
`Reported Operational ill Currency
`
`-7.8%
`1.4%
`-2.8%
`
`7.8%
`2.1%
`5.1%
`
`-79.4%
`3.0%
`-45.7%
`
`23.8%
`16.9%
`21.0%
`
`-7.8%
`2.3%
`-2.3%
`
`7.8%
`4.8%
`6.4%
`
`-79.4%
`2.1%
`-46.1%
`
`23.8%
`18.7%
`21.7%
`
`-0.9%
`-0.5%
`
`-2.7%
`-1.3%
`
`0.9%
`0.4%
`
`-
`-1.8%
`-0.7%
`
`

`

`RISPERDAL CONSTA
`US
`Intl
`WW
`OTHER NEUROSCIENCE
`US
`
`Intl
`
`92
`118
`210
`
`76
`339
`415
`
`595
`867
`1,462
`
`151
`49
`200
`
`158
`188
`346
`
`103
`131
`234
`
`147
`370
`517
`
`457
`816
`1,273
`
`20
`
`20
`
`122
`113
`235
`
`-10.7%
`-9.9%
`-10.3%
`
`-48.3%
`-8.4%
`-19.7%
`
`30.2%
`6.3%
`14.8%
`
`29.5%
`66.4%
`47.2%
`
`-10.7%
`-8.6%
`-9.5%
`
`-48.3%
`-9.8%
`-20.7%
`
`30.2%
`8.1%
`15.9%
`
`'
`
`29.5%
`72.2%
`50.0%
`
`-1.3%
`-0.8%
`
`-
`
`1.4%
`1.0%
`
`-1.8%
`-1.1%
`
`0.0%
`0.0%
`
`-5.8%
`-2.8%
`
`381
`512
`893
`
`366
`1,438
`1,804
`
`2,335
`3,472
`5,807
`
`471
`101
`572
`
`613
`638
`1,251
`
`409
`561
`970
`
`583
`1,482
`2,065
`
`1,547
`3,148
`4,695
`
`20
`
`20
`
`375
`314
`689
`
`-6.8%
`-8.7%
`-7.9%
`
`-37.2%
`-3.0%
`-12.6%
`
`50.9%
`10.3%
`23.7%
`
`63.5%
`
`81.6%
`
`-6.8%
`-7.4%
`-7.1%
`
`-37.2%
`-2.9%
`-12.5%
`
`50.9%
`12.6%
`25.2%
`
`'
`
`63.5%
`
`84.5%
`
`-1.3%
`-0.8%
`
`-0.1%
`-0.1%
`
`-2.3%
`-1.5%
`
`-
`
`0.0%
`0.0%
`
`-
`
`-6.3%
`-2.9%
`
`WW
`ONCOLOGY
`US
`Intl
`WW
`DARZALEX
`US
`Intl
`WW
`IMBRUVICA
`US
`Intl
`WW
`VELCADE
`US
`Intl
`WW
`ZYTIGA
`US
`
`Intl
`
`274
`274
`
`249
`270
`519
`
`37
`86
`123
`
`1,265
`338
`1,603
`
`598
`
`598
`
`321
`321
`
`286
`295
`581
`
`29
`87
`116
`
`1,237
`381
`1,618
`
`494
`
`494
`
`-14.6%
`-14.6%
`
`-12.9%
`-8.5%
`-10.7%
`
`27.6%
`-1.1%
`6.0%
`
`2.3%
`-11.3%
`-0.9%
`
`21.1%
`
`21.1%
`
`-2.0%
`-2.0%
`
`-
`0.5%
`0.3%
`
`-2.4%
`-1.8%
`
`-3.5%
`-0.8%
`
`-12.6%
`-12.6%
`
`-12.9%