January 22, 2013
`
`
`
`Johnson & Johnson Reports 2012 Fourth-Quarter and Full-Year Results:
`
`2012 Fourth-Quarter Sales of $17.6 Billion increased 8.0%; EPS was $0.91
`2012 Full-Year Sales of $67.2 Billion increased 3.4%; Full-Year EPS was $3.86
`Excluding Special Items, 2012 Fourth-Quarter EPS was $1.19, an increase of 5.3%*
`And 2012 Full-Year EPS was $5.10, an increase of 2.0%*
`
`NEW BRUNSWICK, N.J., Jan. 22, 2013 /PRNewswire/ --(cid:160) Johnson & Johnson (NYSE: JNJ) today announced sales of $17.6 billion for the fourth quarter of 2012,
`an increase of 8.0% as compared to the fourth quarter of 2011. Operational results increased 9.3% and the negative impact of currency was 1.3%. Domestic
`sales increased 6.8%, while international sales increased 8.9%, reflecting operational growth of 11.2% and a negative currency impact of 2.3%. Sales for the
`fourth quarter of 2012 included the impact of the recently completed acquisition of Synthes, Inc., which contributed 5.6% to worldwide operational sales
`growth, net of the divestiture of the DePuy trauma business. Worldwide sales for the full-year 2012 were $67.2 billion, an increase of 3.4% versus 2011.
`Operational sales increased 6.1% and the negative impact of currency was 2.7%.(cid:160) Domestic sales increased 3.2%, while international sales increased 3.5%,
`reflecting operational growth of 8.4% and a negative currency impact of 4.9%. Sales for the full-year 2012 included the impact of the recently completed
`acquisition of Synthes, Inc., which contributed 3.1% to worldwide operational sales growth, net of the divestiture of the DePuy trauma business.
`
`Net earnings and diluted earnings per share for the fourth quarter of 2012 were $2.6 billion and $0.91, respectively.** Fourth-quarter 2012 net earnings
`included after-tax special items of $0.8 billion, primarily related to an increase in the litigation accrual and program costs associated with the DePuy ASR™ Hip,
`in-process research and development, and integration and transaction costs related to the acquisition of Synthes, Inc.(cid:160)
`
`Fourth-quarter 2011 net earnings reflect after-tax special items of $2.9 billion as detailed in the accompanying reconciliation of non-GAAP financial measures.
`Excluding these special items for both periods, net earnings for the current quarter were $3.4 billion and diluted earnings per share were $1.19, representing
`increases of 7.9% and 5.3%, respectively, as compared to the same period in 2011.*(cid:160)(cid:160) (cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`
`Net earnings and diluted earnings per share for the full-year 2012 were $10.9 billion and $3.86, respectively.** Full-year net earnings reflect after-tax special
`items of $3.5 billion in 2012 and $4.2 billion in 2011 as detailed in the accompanying reconciliation of non-GAAP financial measures. Excluding these special
`items in both periods, net earnings for the full-year 2012 were $14.3 billion and diluted earnings per share were $5.10, representing increases of 3.4% and
`2.0%, respectively, as compared with the full year of 2011.*(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160) (cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`"Johnson & Johnson delivered solid results in 2012 reflecting continued sales momentum in many parts of our business driven by our focus on delivering
`meaningful innovation in health care to patients and customers. Our results included strong growth of key products, successful new product launches, and the
`addition of Synthes to our family of companies," said Alex Gorsky, Chairman and Chief Executive Officer.(cid:160)"In addition, we continued to make important
`investments building strategic partnerships and in advancing our pipeline, positioning us well for delivering sustainable growth as we enter 2013. I would also
`like to thank our talented colleagues at Johnson & Johnson for their extraordinary achievements in helping advance health and well-being for patients and
`customers around the world."
`
`The Company announced earnings guidance for full-year 2013 of $5.35 to $5.45 per share, which excludes the impact of special items.
`
`Worldwide Consumer sales of $14.4 billion for the full-year 2012 represented a decrease of 2.9% versus the prior year, consisting of an operational increase
`of 0.5% and a negative impact from currency of 3.4%. Domestic sales decreased 2.0%; international sales decreased 3.4%, which reflected an operational
`increase of 1.9% and a negative currency impact of 5.3%.
`
`Positive contributors to operational results were sales of upper respiratory over-the-counter products; international sales of LISTERINE® oral care products;
`and U.S. sales of NEUTROGENA® skin care products.(cid:160)(cid:160)
`
`Worldwide Pharmaceutical sales of $25.4 billion for the full-year 2012 represented an increase of 4.0% versus the prior year with an operational increase of
`6.8% and a negative impact from currency of 2.8%. Domestic sales increased 0.3%; international sales increased 7.9%, which reflected an operational
`increase of 13.6% and a negative currency impact of 5.7%.(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`Primary contributors to operational sales growth were REMICADE® (infliximab), a biologic approved for the treatment of a number of immune-mediated,
`inflammatory diseases; VELCADE® (bortezomib), a treatment for multiple myeloma; PREZISTA® (darunavir), a treatment for HIV; and a number of recently
`launched products.
`
`The strong sales results of recently launched products included ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with
`prednisone for the treatment of metastatic, castration-resistant prostate cancer; INVEGA® SUSTENNA®/XEPLION® (paliperidone palmitate), a once-monthly,
`long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults; international sales of(cid:160) INCIVO ® (telaprevir), a
`direct acting antiviral protease inhibitor, for the treatment of genotype-1 chronic hepatitis C virus, in combination with peginterferon alfa and ribavirin, in adults;
`STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; XARELTO® (rivaroxaban), an oral anticoagulant;
`and SIMPONI® (golimumab), a biologic approved to treat adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis.
`
`Sales results were negatively impacted by generic competition for LEVAQUIN® (levofloxacin), a treatment for bacterial infections and the manufacturing
`suspension at a third party supplier for DOXIL® (doxorubicin HCl liposome injection)/CAELYX® (pegylated liposomal doxorubicin hydrochloride), a medication
`to treat ovarian and other cancers.
`
`During the quarter, the U.S. Food and Drug Administration (FDA) granted accelerated approval for SIRTURO™ (bedaquiline) tablets(cid:160)for the treatment of
`pulmonary multi-drug resistant tuberculosis as part of combination therapy in adults. The FDA and the European Commission also approved an expanded
`indication for ZYTIGA® (abiraterone acetate), in combination with prednisone, allowing for the use before chemotherapy in the treatment of metastatic
`castration-resistant disease.
`
`In November, the FDA approved XARELTO® (rivaroxaban), an oral anticoagulant, for the treatment of deep vein thrombosis (DVT) and/or pulmonary
`embolism (PE), and to reduce the risk of recurrence of DVT and PE following initial treatment. In addition, the FDA approved a new 800mg tablet of
`PREZISTA® (darunavir) for once daily oral administration for the treatment of human immunodeficiency virus (HIV-1) in treatment-naive and treatment-
`
`
`
`JANSSEN EXHIBIT 2110
`Wockhardt v. Janssen IPR2016-01582
`
`

`

`experienced adult patients with no darunavir resistance-associated mutations.
`
`Also during the quarter, a New Drug Application was submitted to the FDA seeking approval for a fixed-dose therapy combining canagliflozin and immediate
`release metformin to treat patients with type 2 diabetes. Additional submissions included a supplemental Biologics License Application to the FDA and a Type
`II Variation to the European Medicines Agency requesting approval of STELARA® (ustekinumab) for the treatment of adult patients with active psoriatic
`arthritis.
`
`Worldwide Medical Devices and Diagnostics sales of $27.4 billion for the full-year 2012 represented an increase of 6.4% versus the prior year with an
`operational increase of 8.7% and a negative impact from currency of 2.3%. Domestic sales increased 8.7%; international sales increased 4.5%, which
`reflected an operational increase of 8.6% and a negative currency impact of 4.1%. Sales included the impact of the recently completed acquisition of Synthes,
`Inc., which contributed 7.9% to worldwide operational sales growth, net of the divestiture of the DePuy trauma business.(cid:160)
`
`Primary contributors to operational growth were sales from the recently completed acquisition of Synthes, Inc. in the Orthopaedics business; a number of
`products in the Specialty Surgery business; Biosense Webster's electrophysiology products in the Cardiovascular Care business; and Vistakon's disposable
`contact lenses.
`
`During the quarter, the FDA approved EVARREST™ Fibrin Sealant Patch, a novel product that rapidly and reliably aids in stopping problematic bleeding
`during surgery. The FDA also approved the S.M.A.R.T.® CONTROL® Vascular Stent Systems for use in the superficial femoral artery and/or the proximal
`popliteal artery.(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`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 128,000 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.
`
`* Net earnings and diluted earnings per share attributable to Johnson & Johnson, 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. A reconciliation of these non-GAAP
`financial measures to the most directly comparable GAAP financial measures is included in the financial schedules accompanying this press release and can
`be found in the Investor Relations section of the Company's website at www.investor.jnj.com.
`
`(cid:160)** Net earnings and diluted earnings per share attributable to Johnson & Johnson.
`
`NOTE TO INVESTORS
`
`Johnson & Johnson will conduct a meeting with members of the investment community to discuss this news release today at 8:30 a.m., Eastern Time. A
`simultaneous webcast of the meeting for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at
`www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.
`
`Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. (cid:160)These schedules include
`supplementary sales data, condensed consolidated statements of earnings, and sales of key products/franchises. (cid:160)Additional information on Johnson &
`Johnson, including a pharmaceutical pipeline of selected compounds in late stage development and medical devices and diagnostics pipeline of selected
`products, can be found on the Company's website at www.jnj.com
`
`(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.(cid:160) The reader is cautioned not to
`rely on these forward-looking statements. These statements are based on current expectations of future events.(cid:160) If underlying assumptions prove inaccurate
`or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson.(cid:160) Risks and
`uncertainties include, but are not limited to, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate
`fluctuations; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining
`regulatory approvals; challenges to patents; significant adverse litigation or government action; impact of business combinations; financial distress and
`bankruptcies experienced by significant customers and suppliers; changes to governmental laws and regulations and domestic and foreign health care
`reforms; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; changes in behavior and
`spending patterns of purchasers of health care products and services; financial instability of international economies and sovereign risk; disruptions due to
`natural disasters; manufacturing difficulties or delays; 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 Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal
`year ended January 1, 2012.(cid:160) Copies of this Form 10 -K, as well as subsequent filings, are available online at www.sec.gov, www.investor.jnj.com or on request
`from Johnson & Johnson.(cid:160) Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or
`developments.)(cid:160)(cid:160)
`
`Johnson & Johnson and Subsidiaries
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`Sales to customers by
`segment of business
`
`Consumer
`(cid:160)(cid:160)(cid:160) U.S.
`(cid:160)(cid:160)(cid:160)
`International
`
`Pharmaceutical
`(cid:160)(cid:160)(cid:160) U.S.
`(cid:160)(cid:160)(cid:160)
`International
`
`2012
`
`2011
`
`FOURTH QUARTER
`Percent Change
`Operations
`
`Total
`
`Currency
`
`2012
`
`2011
`
`TWELVE MONTHS
`Percent Change
`Operations
`
`Total
`
`Currency
`
`$ (cid:160) (cid:160) 1,203
`2,449
`3,652
`
`3,013
`3,512
`6,525
`
`1,248
`2,420
`3,668
`
`2,887
`3,207
`6,094
`
`(3.6) %
`1.2
`(0.4)
`
`4.4
`9.5
`7.1
`
`(3.6)
`3.2
`0.9
`
`4.4
`12.1
`8.5
`
`-
`(2.0)
`(1.3)
`
`-
`(2.6)
`(1.4)
`
`$ (cid:160) (cid:160) 5,046
`9,401
`14,447
`
`12,421
`12,930
`25,351
`
`5,151
`9,732
`14,883
`
`12,386
`11,982
`24,368
`
`(2.0) %
`(3.4)
`(2.9)
`
`0.3
`7.9
`4.0
`
`(2.0)
`1.9
`0.5
`
`0.3
`13.6
`6.8
`
`-
`(5.3)
`(3.4)
`
`-
`(5.7)
`(2.8)
`
`(cid:160)
`

`

`Med Devices & Diagnostics
`(cid:160)(cid:160)(cid:160) U.S.
`(cid:160)(cid:160)(cid:160)
`International
`
`U.S.
`International
`Worldwide
`
`3,244
`4,137
`7,381
`
`7,460
`10,098
`$ (cid:160) 17,558
`
`2,850
`3,643
`6,493
`
`6,985
`9,270
`16,255
`
`13.8
`13.6
`13.7
`
`6.8
`8.9
`8.0 %
`
`13.8
`15.8
`14.9
`
`6.8
`11.2
`9.3
`
`-
`(2.2)
`(1.2)
`
`-
`(2.3)
`(1.3)
`
`12,363
`15,063
`27,426
`
`29,830
`37,394
`$ 67,224
`
`11,371
`14,408
`25,779
`
`28,908
`36,122
`65,030
`
`8.7
`4.5
`6.4
`
`3.2
`3.5
`3.4 %
`
`8.7
`8.6
`8.7
`
`3.2
`8.4
`6.1
`
`-
`(4.1)
`(2.3)
`
`-
`(4.9)
`(2.7)
`
`Johnson & Johnson and Subsidiaries
`Supplementary Sales Data
`
`(Unaudited; Dollars in Millions)
`
`2012
`
`2011
`
`FOURTH QUARTER
`Percent Change
`Operations
`
`Total
`
`Currency
`
`2012
`
`2011
`
`TWELVE MONTHS
`Percent Change
`Operations
`
`Total
`
`Currency
`
`Sales to customers by
`geographic area
`
`U.S.
`
`$ 7,460
`
`6,985
`
`4,279
`1,688
`3,303
`9,270
`
`6.8 %
`
`7.6
`15.0
`7.6
`8.9
`
`6.8
`
`10.4
`18.7
`8.5
`11.2
`
`-
`
`$ 29,830
`
`28,908
`
`3.2 %
`
`(2.8)
`(3.7)
`(0.9)
`(2.3)
`
`16,945
`7,207
`13,242
`37,394
`
`17,129
`6,418
`12,575
`36,122
`
`(1.1)
`12.3
`5.3
`3.5
`
`3.2
`
`5.8
`19.0
`6.7
`8.4
`
`-
`
`(6.9)
`(6.7)
`(1.4)
`(4.9)
`
`Europe
`Western Hemisphere excluding U.S.
`Asia-Pacific, Africa
`International
`
`4,603
`1,941
`3,554
`10,098
`
`Worldwide
`
`$ 17,558
`
`16,255
`
`8.0 %
`
`9.3
`
`(1.3)
`
`$ 67,224
`
`65,030
`
`3.4 %
`
`6.1
`
`(2.7)
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings(cid:160)
`
`(Unaudited; in Millions Except Per Share Figures)
`
`FOURTH QUARTER
`
`2012
`
`2011
`
`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 (income) expense, net
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnings
`Add: Net loss attributable to noncontrolling interest
`Net earnings attributable to Johnson & Johnson
`
`Amount
`$ (cid:160) 17,558
`6,003
`5,661
`2,331
`55
`89
`319
`-
`3,100
`533
`2,567
`-
`
`$ (cid:160) (cid:160) 2,567
`
`Percent
`to Sales
`100.0
`34.2
`32.2
`13.3
`0.3
`0.5
`1.8
`-
`17.7
`3.1
`14.6
`-
`14.6
`
`Net earnings per share attributable to Johnson & Johnson (Diluted)
`
`$ (cid:160) (cid:160) (cid:160) 0.91
`
`Average shares outstanding (Diluted)
`
`2,833.4
`
`Amount
`$ (cid:160) (cid:160)16,255
`5,338
`5,458
`2,155
`-
`148
`2,858
`(20)
`318
`100
`218
`-
`
`$ (cid:160) (cid:160) (cid:160) (cid:160) 218
`
`$ (cid:160) (cid:160) (cid:160) (cid:160)0.08
`
`2,768.9
`
`Percent
`to Sales
`100.0
`32.8
`33.6
`13.3
`-
`0.9
`17.6
`(0.1)
`1.9
`0.6
`1.3
`-
`1.3
`
`Percent
`Increase
`(Decrease)
`8.0
`12.5
`3.7
`8.2
`
`874.8
`433.0
`1,077.5
`
`1,077.5
`
`1,037.5
`
`Effective tax rate
`
`17.2 %
`
`31.4 %
`
`Adjusted earnings before provision for taxes and net earnings attributable to Johnson & Johnson (1)
`(cid:160)(cid:160) Earnings before provision for taxes on income
`$ (cid:160) (cid:160) 4,115
`23.4
`(cid:160)(cid:160) Net earnings attributable to Johnson & Johnson
`$ (cid:160) (cid:160) 3,376
`19.2
`(cid:160)(cid:160) Net earnings per share attributable to Johnson(cid:160)& Johnson (Diluted)
`$ (cid:160) (cid:160) (cid:160) 1.19
`(cid:160)(cid:160) Effective tax rate
`18.0 %
`
`$ (cid:160) (cid:160) (cid:160)3,657
`$ (cid:160) (cid:160) (cid:160)3,129
`$ (cid:160) (cid:160) (cid:160) (cid:160)1.13
`14.4 %
`
`22.5
`19.2
`
`12.5
`7.9
`5.3
`
`(1) See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson & Johnson and Subsidiaries
`Condensed Consolidated Statement of Earnings(cid:160)
`
`(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
`
`2012
`
`2011
`
`Amount
`$ (cid:160) (cid:160)67,224
`21,658
`20,869
`7,665
`
`Percent
`to Sales
`100.0
`32.2
`31.0
`11.4
`
`Amount
`$ (cid:160) (cid:160)65,030
`20,360
`20,969
`7,548
`
`Percent
`to Sales
`100.0
`31.3
`32.3
`11.6
`
`Percent
`Increase
`(Decrease)
`3.4
`6.4
`(0.5)
`1.6
`
`(cid:160)(cid:160)
`

`

`In-process research and development
`Interest (income) expense, net
`Other (income) expense, net
`Restructuring (income) expense, net
`Earnings before provision for taxes on income
`Provision for taxes on income
`Net earnings
`Add: Net loss attributable to noncontrolling interest
`Net earnings attributable to Johnson & Johnson
`
`1,163
`468
`1,626
`-
`13,775
`3,261
`10,514
`339
`$ (cid:160) (cid:160)10,853
`
`1.7
`0.7
`2.5
`-
`20.5
`4.9
`15.6
`0.5
`16.1
`
`Net earnings per share attributable to Johnson & Johnson (Diluted)
`
`$ (cid:160) (cid:160) (cid:160) (cid:160)3.86
`
`Average shares outstanding (Diluted)
`
`2,812.6
`
`-
`480
`2,743
`569
`12,361
`2,689
`9,672
`-
`
`$ (cid:160) (cid:160) (cid:160)9,672
`
`$ (cid:160) (cid:160) (cid:160) (cid:160)3.49
`
`2,775.3
`
`Effective tax rate
`
`23.7 %
`
`21.8 %
`
`Adjusted earnings before provision for taxes and net earnings attributable to Johnson & Johnson (1)
`(cid:160)(cid:160) Earnings before provision for taxes on income
`$ (cid:160) (cid:160)18,214
`27.1
`(cid:160)(cid:160) Net earnings attributable to Johnson & Johnson
`$ (cid:160) (cid:160)14,345
`21.3
`(cid:160)(cid:160) Net earnings per share attributable to Johnson & Johnson (Diluted)
`$ (cid:160) (cid:160) (cid:160) (cid:160)5.10
`(cid:160)(cid:160) Effective tax rate
`21.2 %
`
`$ (cid:160) (cid:160)17,353
`$ (cid:160) (cid:160)13,867
`$ (cid:160) (cid:160) (cid:160) (cid:160)5.00
`20.1 %
`
`-
`0.7
`4.2
`0.9
`19.0
`4.1
`14.9
`-
`14.9
`
`26.7
`21.3
`
`11.4
`21.3
`8.7
`
`12.2
`
`10.6
`
`5.0
`3.4
`2.0
`
`(1) See Reconciliation of Non-GAAP Financial Measures.
`
`Johnson & Johnson and Subsidiaries
`Reconciliation of Non-GAAP Financial Measures
`
`(Dollars in Millions Except Per Share Data)
`
`Fourth Quarter
`2012
`2011
`
`% Incr. /
`(Decr.)
`
`Twelve Months(cid:160)
`2012
`
`2011
`
`% Incr. /
`(Decr.)
`
`Earnings before provision for taxes on income - as reported
`
`$ (cid:160)3,100
`
`318
`
`874.8 %
`
`$ (cid:160) 13,775
`
`12,361
`
`11.4 %
`
`Net litigation loss (gain)
`
`In-process research and development
`
`Synthes integration/transaction costs and currency related
`
`Intangible asset write-downs and other adjustments
`
`DePuy ASR™ Hip program
`
`Restructuring(cid:160)
`
`471
`
`55
`
`406
`
`-
`
`83
`
`-
`
`2,656
`
`14
`
`277
`
`-
`
`412
`
`(20)
`
`1,229
`
`1,163
`
`1,028
`
`909
`
`110
`
`-
`
`3,310
`
`14
`
`491
`
`-
`
`521
`
`656
`
`Earnings before provision for taxes on income - as adjusted
`
`$ (cid:160)4,115
`
`3,657
`
`12.5 %
`
`$ 18,214
`
`17,353
`
`5.0 %
`
`Net Earnings attributable to Johnson & Johnson - as reported
`
`$ (cid:160)2,567
`
`218
`
`1,077.5 %
`
`$10,853
`
`1,052
`
`12.2 %
`
`9,672
`
`2,745
`
`Net litigation loss (gain)
`
`In-process research and development
`
`Synthes integration/transaction costs and currency related
`
`Intangible asset write-downs and other adjustments
`
`DePuy ASR™ Hip program
`
`Restructuring(cid:160)
`
`371
`
`59
`
`306
`
`-
`
`73
`
`-
`
`2,239
`
`11
`
`338
`
`-
`
`336
`
`(13)
`
`743
`
`(1)
`
`899
`
`701
`
`97
`
`-
`
`11
`
`477
`
`-
`
`426
`
`536
`
`Net Earnings attributable to Johnson & Johnson - as adjusted(cid:160)
`
`$ (cid:160)3,376
`
`3,129
`
`7.9 %
`
`$ 14,345
`
`13,867
`
`3.4 %
`
`(cid:160) %
`
`10.6
`
`(cid:160) %
`
`2.0
`
`3.49
`
`0.99
`
`-
`
`0.17
`
`-
`
`0.16
`
`0.19
`
`5.00
`
`1,037.5 %
`
`$ (cid:160) (cid:160) (cid:160)3.86
`
`0.37
`
`0.27
`
`0.32
`
`0.25
`
`0.03
`
`-
`
`Diluted Net Earnings per share attributable to Johnson & Johnson - as adjusted(cid:160)
`
`$ (cid:160) 1.19
`
`1.13
`
`5.3 %
`
`$ (cid:160) (cid:160)5.10
`
`Diluted Net Earnings per share attributable to Johnson & Johnson - as reported
`
`$ (cid:160) (cid:160)0.91
`
`Net litigation loss (gain)
`
`In-process research and development
`
`Synthes integration/transaction costs and currency related
`
`Intangible asset write-downs and other adjustments
`
`DePuy ASR™ Hip program
`
`Restructuring(cid:160)
`
`0.08
`
`0.81
`
`-
`
`0.12
`
`-
`
`0.13
`
`0.02
`
`0.11
`
`-
`
`0.02
`
`0.12
`
`-
`
`-
`
`(cid:160)
`(cid:160)
`(cid:160)
`(cid:160)
`(cid:160)
`(cid:160)
`

`

`(1) Amount includes third quarter in-process research and development charge of $679M related to bapineuzumab IV offset by $339M reported as net loss attributable to(cid:160)noncontrolling interest
`
`The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes(cid:160)
`on income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations.
`
`CONSUMER SEGMENT (2)(cid:160)
`BABY CARE
`US
`Intl
`WW
`ORAL CARE
`US
`Intl
`WW
`OTC/NUTRITIONALS
`US
`Intl
`WW
`SKIN CARE
`US
`Intl
`WW
`WOMEN'S HEALTH
`US
`Intl
`WW
`WOUND CARE/OTHER
`US
`Intl
`WW
`
`REPORTED SALES vs. PRIOR PERIOD ($MM)
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`0.0%
`0.9%
`0.7%
`
`-4.6%
`5.0%
`1.0%
`
`-3.8%
`4.7%
`1.9%
`
`-4.5%
`-5.9%
`-5.3%
`
`-7.9%
`5.2%
`2.3%
`
`1.8%
`-7.0%
`-2.4%
`
`$ (cid:160) (cid:160) 103
`469
`572
`
`165
`251
`416
`
`356
`802
`1,158
`
`385
`509
`894
`
`82
`325
`407
`
`112
`93
`205
`
`103
`465
`568
`
`173
`239
`412
`
`370
`766
`1,136
`
`403
`541
`944
`
`89
`309
`398
`
`110
`100
`210
`
`1,203
`2,449
`$ (cid:160)3,652
`
`1,248
`2,420
`3,668
`
`0.0%
`3.5%
`2.8%
`
`-4.6%
`6.6%
`2.0%
`
`-3.8%
`5.7%
`2.6%
`
`-4.5%
`-3.4%
`-3.9%
`
`-7.9%
`9.4%
`5.5%
`
`1.8%
`-8.0%
`-2.9%
`
`-
`-2.6%
`-2.1%
`
`-
`-1.6%
`-1.0%
`
`-
`-1.0%
`-0.7%
`
`-
`-2.5%
`-1.4%
`
`-
`-4.2%
`-3.2%
`
`-
`1.0%
`0.5%
`
`-
`-2.0%
`-1.3%
`
`$ (cid:160) (cid:160) (cid:160) 412
`1,842
`2,254
`
`641
`983
`1,624
`
`1,424
`2,930
`4,354
`
`1,699
`1,919
`3,618
`
`336
`1,289
`1,625
`
`534
`438
`972
`
`418
`1,922
`2,340
`
`656
`968
`1,624
`
`1,429
`2,973
`4,402
`
`1,654
`2,061
`3,715
`
`439
`1,353
`1,792
`
`555
`455
`1,010
`
`5,046
`9,401
`$ 14,447
`
`5,151
`9,732
`14,883
`
`-1.4%
`-4.2%
`-3.7%
`
`-2.3%
`1.5%
`0.0%
`
`-0.3%
`-1.4%
`-1.1%
`
`2.7%
`-6.9%
`-2.6%
`
`-23.5%
`-4.7%
`-9.3%
`
`-3.8%
`-3.7%
`-3.8%
`
`-2.0%
`-3.4%
`-2.9%
`
`-1.4%
`1.1%
`0.6%
`
`-2.3%
`6.9%
`3.2%
`
`-0.3%
`3.4%
`2.1%
`
`2.7%
`-2.0%
`0.1%
`
`-23.5%
`2.3%
`-4.0%
`
`-3.8%
`0.6%
`-1.8%
`
`-2.0%
`1.9%
`0.5%
`
`-
`-5.3%
`-4.3%
`
`-
`-5.4%
`-3.2%
`
`-
`-4.8%
`-3.2%
`
`-
`-4.9%
`-2.7%
`
`-
`-7.0%
`-5.3%
`
`-
`-4.3%
`-2.0%
`
`-
`-5.3%
`-3.4%
`
`TOTAL CONSUMER
`US
`Intl
`WW
`
`See footnotes at end of schedule
`
`-3.6%
`1.2%
`-0.4%
`
`-3.6%
`3.2%
`0.9%
`
`REPORTED SALES vs. PRIOR PERIOD ($MM)
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`$ (cid:160)1,448
`528
`1,976
`
`871
`347
`286
`1,504
`
`72
`109
`181
`
`158
`111
`269
`
`-
`22
`22
`
`236
`620
`856
`
`1,401
`395
`1,796
`
`776
`437
`215
`1,428
`
`62
`57
`119
`
`126
`81
`207
`
`-
`42
`42
`
`210
`506
`716
`
`3.4%
`33.7%
`10.0%
`
`12.2%
`-20.6%
`33.0%
`5.3%
`
`16.1%
`91.2%
`52.1%
`
`25.4%
`37.0%
`30.0%
`
`-
`-47.6%
`-47.6%
`
`12.4%
`22.5%
`19.6%
`
`3.4%
`35.7%
`10.4%
`
`12.2%
`-20.6%
`34.4%
`5.5%
`
`16.1%
`96.8%
`54.8%
`
`25.4%
`40.1%
`31.2%
`
`-
`-49.4%
`-49.4%
`
`12.4%
`26.7%
`22.6%
`
`-
`-2.0%
`-0.4%
`
`-
`-
`-1.4%
`-0.2%
`
`-
`-5.6%
`-2.7%
`
`-
`-3.1%
`-1.2%
`
`-
`1.8%
`1.8%
`
`-
`-4.2%
`-3.0%
`
`$ (cid:160) 5,972
`1,902
`7,874
`
`3,583
`1,470
`1,086
`6,139
`
`292
`315
`607
`
`627
`398
`1,025
`
`-
`103
`103
`
`974
`2,220
`3,194
`
`5,751
`1,047
`6,798
`
`3,276
`1,797
`419
`5,492
`
`235
`175
`410
`
`443
`295
`738
`
`-
`158
`158
`
`1,401
`1,788
`3,189
`
`3.8%
`81.7%
`15.8%
`
`9.4%
`-18.2%
`*
`11.8%
`
`24.3%
`80.0%
`48.0%
`
`41.5%
`34.9%
`38.9%
`
`-
`-34.8%
`-34.8%
`
`-30.5%
`24.2%
`0.2%
`
`3.8%
`86.3%
`16.9%
`
`9.4%
`-18.2%
`*
`12.6%
`
`24.3%
`87.5%
`51.2%
`
`41.5%
`42.4%
`41.9%
`
`-
`-33.0%
`-33.0%
`
`-30.5%
`32.1%
`4.6%
`
`-
`-4.6%
`-1.1%
`
`-
`-
`-4.5%
`-0.8%
`
`-
`-7.5%
`-3.2%
`
`-
`-7.5%
`-3.0%
`
`-
`-1.8%
`-1.8%
`
`-
`-7.9%
`-4.4%
`
`PHARMACEUTICAL SEGMENT(cid:160) (2) (4)
`IMMUNOLOGY
`US
`Intl
`WW
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`REMICADE
`
`(3)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US(cid:160)
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US Exports
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`SIMPONI
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`STELARA
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160) OTHER IMMUNOLOGY
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`INFECTIOUS DISEASES
`US
`Intl
`WW
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`INTELENCE
`
`(cid:160)(cid:160)
`

`

`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`LEVAQUIN/FLOXIN
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`PREZISTA
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`OTHER INFECTIOUS DISEASES
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`
`46
`38
`84
`
`-
`10
`10
`
`165
`188
`353
`
`25
`384
`409
`
`45
`38
`83
`
`(6)
`11
`5
`
`143
`173
`316
`
`28
`284
`312
`
`2.2%
`0.0%
`1.2%
`
`*
`-9.1%
`100.0%
`
`15.4%
`8.7%
`11.7%
`
`-10.7%
`35.2%
`31.1%
`
`2.2%
`1.7%
`2.0%
`
`*
`-10.5%
`97.2%
`
`15.4%
`12.2%
`13.6%
`
`-10.7%
`40.5%
`35.9%
`
`-
`-1.7%
`-0.8%
`
`-
`1.4%
`2.8%
`
`-
`-3.5%
`-1.9%
`
`-
`-5.3%
`-4.8%
`
`176
`173
`349
`
`35
`40
`75
`
`672
`742
`1,414
`
`91
`1,265
`1,356
`
`163
`151
`314
`
`579
`44
`623
`
`529
`682
`1,211
`
`130
`911
`1,041
`
`8.0%
`14.6%
`11.1%
`
`-94.0%
`-9.1%
`-88.0%
`
`27.0%
`8.8%
`16.8%
`
`-30.0%
`38.9%
`30.3%
`
`8.0%
`22.2%
`14.8%
`
`-94.0%
`-5.8%
`-87.8%
`
`27.0%
`16.3%
`21.0%
`
`-30.0%
`47.3%
`37.7%
`
`-
`-7.6%
`-3.7%
`
`-
`-3.3%
`-0.2%
`
`-
`-7.5%
`-4.2%
`
`-
`-8.4%
`-7.4%
`
`REPORTED SALES vs. PRIOR PERIOD ($MM)
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`2012
`
`2011
`
`% Change
`Reported Operational (1) Currency
`
`NEUROSCIENCE
`US
`Intl
`WW
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`CONCERTA/METHYLPHENIDATE
`
`601
`1,088
`1,689
`
`611
`1,128
`1,739
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`INVEGA
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`INVEGA SUSTENNA/ XEPLION
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`116
`127
`243
`
`76
`71
`147
`
`132
`96
`228
`
`155
`119
`274
`
`66
`59
`125
`
`99
`36
`135
`
`-1.6%
`-3.5%
`-2.9%
`
`-25.2%
`6.7%
`-11.3%
`
`15.2%
`20.3%
`17.6%
`
`33.3%
`*
`68.9%
`
`-1.6%
`-1.6%
`-1.6%
`
`-25.2%
`8.1%
`-10.7%
`
`15.2%
`23.0%
`18.9%
`
`33.3%
`*
`69.9%
`
`-
`-1.9%
`-1.3%
`
`-
`-1.4%
`-0.6%
`
`-
`-2.7%
`-1.3%
`
`-
`-2.4%
`-1.0%
`
`2,611
`4,107
`6,718
`
`609
`464
`1,073
`
`299
`251
`550
`
`482
`314
`796
`
`2,617
`4,331
`6,948
`
`822
`446
`1,268
`
`285
`214
`499
`
`319
`59
`378
`
`-0.2%
`-5.2%
`-3.3%
`
`-25.9%
`4.0%
`-15.4%
`
`4.9%
`17.3%
`10.2%
`
`51.1%
`*
`*
`
`-0.2%
`-0.8%
`-0.5%
`
`-25.9%
`8.8%
`-13.7%
`
`4.9%
`22.0%
`12.2%
`
`51.1%
`*
`*
`
`-
`-4.4%
`-2.8%
`
`-
`-4.8%
`-1.7%
`
`-
`-4.7%
`-2.0%
`
`-
`-5.7%
`-2.2%
`
`(cid:160)(cid:160) (cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`RISPERDAL CONSTA
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`OTHER NEUROSCIENCE
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`ONCOLOGY
`US
`Intl
`WW
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`DOXIL/CAELYX
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`VELCADE
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)US
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)Intl
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)WW
`ZYTIGA
`
`(cid:160)(cid:160)(cid:160)(cid:160)(cid:160)
`
`103
`255
`358
`
`174
`539
`713
`
`135
`684
`819
`
`21
`9
`30
`
`-
`502
`502
`
`114
`150
`264
`
`-
`23
`23
`
`108
`277
`385
`
`183
`637
`820
`
`95
`468
`563
`
`10
`29
`39
`
`-
`352
`352
`
`85
`67
`152
`
`-
`20
`20
`
`-4.6%
`-7.9%
`-7.0%
`
`-4.9%
`-15.4%
`-13.0%
`
`42.1%
`46.2%
`45.5%
`
`*
`-69.0%
`-23.1%
`
`-
`42.6%
`42.6%
`
`34.1%
`*
`73.7%
`
`-
`15.0%
`15.0%
`
`-4.6%
`-5.8%
`-5.5%
`
`-4.9%
`-13.7%
`-11.7%
`
`42.1%
`49.7%
`48.5%
`
`*
`-68.3%
`-22.6%
`
`-
`47.6%
`47.6%
`
`34.1%
`*
`75.8%
`
`-
`18.8%
`18.8%
`
`-
`-2.1%
`-1.5%
`
`-
`-1.7%
`-1.3%
`
`-
`-3.5%
`-3.0%
`
`-
`-0.7%
`-0.5%
`
`-
`-5.0%
`-5.0%
`
`-
`-3.8%
`-2.1%
`
`-
`-3.8%
`-3.8%
`
`439
`986
`1,425
`
`782
`2,092
`2,874
`
`506
`2,123
`2,629
`
`43
`40
`83
`
`-
`1,500
`1,500
`
`463
`498
`961
`
`-
`85
`85
`
`443
`1,140
`1,583
`
`748
`2,472
`3,220
`
`331
`1,717
`2,048
`
`140
`262
`402
`
`-
`1,274
`1,274
`
`191
`110
`301
`
`-
`71
`71
`
`-0.9%
`-13.5%
`-10.0%
`
`4.5%
`-15.4%
`-10.7%
`
`52.9%
`23.6%
`28.4%
`
`-69.3%
`-84.7%
`-79.4%
`
`-
`17.7%
`17.7%
`
`*
`*
`*
`
`-
`19.7%
`19.7%
`
`-0.9%
`-8.6%
`-6.4%
`
`4.5%
`-11.9%
`-8.0%
`
`52.9%
`29.7%
`33.3%
`
`-69.3%
`-83.5%
`-78.6%
`
`-
`24.5%
`24.5%
`
`*
`*
`*
`
`-
`25.5%
`25.5%
`
`-
`-4.9%
`-3.6%
`
`-
`-3.5%
`-2.7%
`
`-
`-6.1%
`-4.9%
`
`-
`-1.2%
`-0.8%
`
`-
`-6.8%
`-6.8%
`
`-
`-7.0%
`-3.7%
`
`-
`-5.8%
`-5.8%
`
`(cid:160)