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Johnson & Johnson Reports 2019 Fourth-Quarter And Full Year Results:
Jan 22, 2020
- 2019 Fourth-Quarter Sales of $20.7 Billion reflecting growth of 1.7%, operational growth of 2.6%* and adjusted operational growth of 3.4%*
- 2019 Full-Year Sales of $82.1 Billion reflecting growth of 0.6%, operational growth of 2.8%* and adjusted operational growth of 4.5%*
- 2019 Fourth-Quarter EPS of $1.50 increased 33.9%; adjusted EPS of $1.88 decreased 4.6%*
- 2019 Full-Year EPS of $5.63 increased 0.4%; adjusted EPS of $8.68 increased 6.1%*
- Company projects continued sales and earnings growth in 2020 guidance

NEW BRUNSWICK, N.J., Jan. 22, 2020 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2019. "We delivered strong underlying sales and earnings growth in 2019, driven by the strength of our Pharmaceutical business, accelerating performance in our Medical Devices business and improved profitability in our Consumer business," said Alex Gorsky, Chairman and Chief Executive Officer. "As we enter into 2020 and this next decade, our strategic investments focused on advancing our pipelines and driving innovation across our entire product portfolio, position us well to deliver long-term sustainable growth and value to our shareholders."

Mr. Gorsky continued, "I am extremely proud of our talented and dedicated colleagues who live Our Credo values each and every day, and are inspired to deliver transformative healthcare solutions that improve the lives of our patients and consumers around the world."

OVERALL FINANCIAL RESULTS:

 

FOURTH QUARTER

   

TWELVE MONTHS

 

($ in Millions, except EPS)

2019

2018

%  Change

 

2019

2018

%  Change

Reported Sales

$       20,747

$       20,394

1.7%

 

$       82,059

$       81,581

0.6%

Net Earnings

4,010

3,042

31.8%

 

15,119

15,297

(1.2)%

EPS (diluted)

$           1.50

$           1.12

33.9%

 

$           5.63

$           5.61

0.4%

               

Non-GAAP*

FOURTH QUARTER

   

TWELVE MONTHS

 

($ in Millions, except EPS)

2019

2018

%  Change

 

2019

2018

%  Change

Operational Sales1,2

n/a

n/a

2.6%

 

n/a

n/a

2.8%

Adjusted Operational Sales1,3

n/a

n/a

3.4%

 

n/a

n/a

4.5%

Adjusted Net Earnings1,4

5,027

5,372

(6.4)%

 

23,310

22,315

4.5%

Adjusted EPS (diluted)1,4

$           1.88

$           1.97

(4.6)%

 

$           8.68

$           8.18

6.1%

 

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules 

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Excludes intangible amortization expense and special items

 

REGIONAL SALES RESULTS: 

 

FOURTH QUARTER

%  Change

($ in Millions)

2019

2018

Reported

Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$       10,774

$       10,629

1.4%

1.4

-

2.7

International

9,973

9,765

2.1%

4.0

(1.9)

4.1

Worldwide

$       20,747

$       20,394

1.7%

2.6

(0.9)

3.4

             
             
             
 

TWELVE MONTHS

%  Change

($ in Millions)

2019

2018


Reported


Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$       42,097

$       41,884

0.5%

0.5

-

2.3

International

39,962

39,697

0.7%

5.3

(4.6)

6.7

Worldwide

$       82,059

$       81,581

0.6%

2.8

(2.2)

4.5

 

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

 

SEGMENT SALES RESULTS:

 

FOURTH QUARTER

%  Change

($ in Millions)

2019

2018

Reported


Operational1,2

Currency

Adjusted 
Operational1,3

Consumer

$         3,567

$         3,536

0.9%

2.1

(1.2)

1.4

Pharmaceutical

10,548

10,190

3.5%

4.4

(0.9)

4.5

Medical Devices

6,632

6,668

(0.5)%

0.2

(0.7)

2.7

Worldwide

$       20,747

$       20,394

1.7%

2.6

(0.9)

3.4

             
             
 

TWELVE MONTHS

%  Change


($ in Millions)

2019

2018

Reported

Operational1,2

Currency

Adjusted
Operational1,3

Consumer

$       13,898

$       13,853

0.3%

3.0

(2.7)

1.4

Pharmaceutical

42,198

40,734

3.6%

5.8

(2.2)

5.8

Medical Devices

25,963

26,994

(3.8)%

(1.7)

(2.1)

3.9

Worldwide

$       82,059

$       81,581

0.6%

2.8

(2.2)

4.5

 

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

FULL-YEAR 2019 SEGMENT COMMENTARY:

Consumer
Consumer worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 1.4%* driven by NEUTROGENA beauty products and over-the-counter products including TYLENOL and MOTRIN analgesics, partially offset by lower sales of baby care products.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 5.8%* driven by STELARA (ustekinumab), a biologic for the treatment of  a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer.  This growth was partially offset by biosimilar and generic competition, primarily declines in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, U.S. ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer and international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* driven by electrophysiology products in the Interventional Solutions business, international energy and endocutter products in the Advanced Surgery business, and ACUVUE contact lenses in the Vision business.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson's other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases available online in the Investors section of the company's website at news releases.

Regulatory Approvals

DARZALEX (daratumumab) - European Commission Approves Combination with Bortezomib, Thalidomide and Dexamethasone for Patients with Newly Diagnosed Multiple Myeloma Who Are Transplant Eligible1

(press release)

SPRAVATO (esketamine) Nasal Spray - Approved in Europe for Adults with Treatment-Resistant Major Depressive Disorder

(press release)

DARZALEX (daratumumab) - European Commission Approves Combination with Lenalidomide and Dexamethasone for Patients with Newly Diagnosed Multiple Myeloma Who Are Transplant Ineligible

(press release)

STELARA (ustekinumab) - U.S. FDA Approval for the Treatment of Adults with Moderately to Severely Active Ulcerative Colitis

(press release)

Regulatory Submissions

SPRAVATO (esketamine) - Submission of a Type II Variation Application to the European Medicines Agency (EMA) Seeking Expanded Use as a Treatment for Depressive Symptoms in Adults with Major Depressive Disorder Who Have Current Suicidal Ideation with Intent1

(press release)

IMBRUVICA (ibrutinib) - Supplemental NDA Submitted to U.S. FDA and Type II Variation Submitted to EMA1 Seeking Approval of Combination with Rituximab for Previously Untreated Patients with CLL

(press release)

(press release)

Ebola Vaccine Regimen - Submission of MAA to EMA for Prevention of Ebola Virus Disease (EVD) caused by Zaire Ebolavirus Species.

(press release)

TREMFYA (guselkumab) - Submission of a Type II Variation Application to the EMA Seeking to Expand Use in the Treatment of Adults with Active Psoriatic Arthritis

(press release)

Other

Completion of Acquisition of Bermekimab, an investigational compound for multiple dermatological indications, from XBiotech Inc. 1

(press release)

Rilpivirine and Cabotegravir - U.S. FDA issues Complete Response Letter Issued for Investigational Two-Drug Long-Acting HIV Regimen

(press release)

Completion of Acquisition of TARIS Biomedical with Focus on Transforming the Treatment of Bladder Cancer

(press release)

Agreement Announced to Acquire Remaining Stake in Verb Surgical Inc.

(press release)

BCMA CAR-T Therapy Granted U.S. FDA Breakthrough Therapy Designation for the Treatment of Relapsed or Refractory Multiple Myeloma

(press release)

J&J Vision Introduces TECNIS Toric II 1-Piece IOL as New Monofocal Option for Cataract Patients with Astigmatism

(press release)

Ethicon Launches VISTASEAL Fibrin Sealant (Human) To Manage Bleeding During Surgery

(press release)

New Cervical Spine System from DePuy Synthes Advances Treatment Options for Patients with Complex Cervical Spine Disorders

(press release)

1 Subsequent to the quarter

 

FULL-YEAR 2020 GUIDANCE:
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.

 

January 2020

($ in Billions, except EPS)

 

Adjusted Operational Sales1,2

Change vs. Prior Year

5.0% - 6.0%

Operational Sales2

Change vs. Prior Year

$85.8 to $86.6

4.5% - 5.5%

Estimated Reported Sales3

Change vs. Prior Year

$85.4 to $86.2

4.0% - 5.0%

   

Adjusted Operational EPS (Diluted)2,4

Change vs. Prior Year

$9.00 to $9.15

3.7% - 5.4%

Adjusted EPS (Diluted)3,4

Change vs. Prior Year

$8.95 to $9.10

3.1% - 4.8%

1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

2 Non-GAAP financial measure; excludes the impact of translational currency

3 Calculated using Euro Average Rate: January 2020 = $1.11 (Illustrative purposes only)

Non-GAAP financial measure; excludes intangible amortization expense and special items

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:00 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. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity. 

NON-GAAP FINANCIAL MEASURES:
*Operational sales growth excluding the impact of translational currency, adjusted operational sales growth excluding the net impact of acquisitions and divestitures and translational currency, as well as adjusted net earnings, adjusted diluted earnings per share and adjusted operational 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 Investors section of the company's website at quarterly-results.

Copies of the financial schedules accompanying this earnings release are available on the company's website at quarterly-results. 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 also be found in the Investors section of the company's website at quarterly-results.

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; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; 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 of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 30, 2018, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the company's most recently filed Quarterly Report on Form 10-Q and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement 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

 

2019

 

2018

 

Total

 

Operations

 

Currency

 

2019

 

2018

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

segment of business

                                     
                                       

Consumer

                                     

    U.S.

$      1,470

 

1,479

 

(0.6)

%

(0.6)

 

-

 

$      5,839

 

5,761

 

1.4

%

1.4

 

-

    International

2,097

 

2,057

 

2.0

 

4.0

 

(2.0)

 

8,059

 

8,092

 

(0.4)

 

4.2

 

(4.6)

 

3,567

 

3,536

 

0.9

 

2.1

 

(1.2)

 

13,898

 

13,853

 

0.3

 

3.0

 

(2.7)

                                       

Pharmaceutical

                                     

    U.S.

6,169

 

5,936

 

3.9

 

3.9

 

-

 

23,874

 

23,286

 

2.5

 

2.5

 

-

    International

4,379

 

4,254

 

2.9

 

5.1

 

(2.2)

 

18,324

 

17,448

 

5.0

 

10.1

 

(5.1)

 

10,548

 

10,190

 

3.5

 

4.4

 

(0.9)

 

42,198

 

40,734

 

3.6

 

5.8

 

(2.2)

                                       

Medical Devices

                                     

    U.S.

3,135

 

3,214

 

(2.4)

 

(2.4)

 

-

 

12,384

 

12,837

 

(3.5)

 

(3.5)

 

-

    International

3,497

 

3,454

 

1.3

 

2.7

 

(1.4)

 

13,579

 

14,157

 

(4.1)

 

(0.1)

 

(4.0)

 

6,632

 

6,668

 

(0.5)

 

0.2

 

(0.7)

 

25,963

 

26,994

 

(3.8)

 

(1.7)

 

(2.1)

                                       

U.S.

10,774

 

10,629

 

1.4

 

1.4

 

-

 

42,097

 

41,884

 

0.5

 

0.5

 

-

International

9,973

 

9,765

 

2.1

 

4.0

 

(1.9)

 

39,962

 

39,697

 

0.7

 

5.3

 

(4.6)

Worldwide

$    20,747

 

20,394

 

1.7

%

2.6

 

(0.9)

 

$    82,059

 

81,581

 

0.6

%

2.8

 

(2.2)

                                       

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

                   

 

 

Johnson & Johnson and Subsidiaries

                                     

Supplementary Sales Data

                                     
                                       

(Unaudited; Dollars in Millions)

FOURTH QUARTER

 

TWELVE MONTHS

         

Percent Change

         

Percent Change

 

2019

 

2018

 

Total

 

Operations

 

Currency

 

2019

 

2018

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$  10,774

 

10,629

 

1.4

%

1.4

 

-

 

$  42,097

 

41,884

 

0.5

%

0.5

 

-

                                       

Europe

4,663

 

4,730

 

(1.4)

 

1.0

 

(2.4)

 

18,466

 

18,753

 

(1.5)

 

3.8

 

(5.3)

Western Hemisphere excluding U.S.

1,495

 

1,456

 

2.6

 

9.3

 

(6.7)

 

5,941

 

6,113

 

(2.8)

 

5.7

 

(8.5)

Asia-Pacific, Africa

3,815

 

3,579

 

6.6

 

5.8

 

0.8

 

15,555

 

14,831

 

4.9

 

6.9

 

(2.0)

International

9,973

 

9,765

 

2.1

 

4.0

 

(1.9)

 

39,962

 

39,697

 

0.7

 

5.3

 

(4.6)

                                       

Worldwide

$  20,747

 

20,394

 

1.7

%

2.6

 

(0.9)

 

$  82,059

 

81,581

 

0.6

%

2.8

 

(2.2)

                                       

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

                   

 

 

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings

                 
                   

(Unaudited; in Millions Except Per Share Figures)

FOURTH QUARTER

                   
 

2019

 

2018

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 20,747

 

100.0

 

$ 20,394

 

100.0

 

1.7

Cost of products sold

7,134

 

34.4

 

6,961

 

34.1

 

2.5

Gross Profit

13,613

 

65.6

 

13,433

 

65.9

 

1.3

Selling, marketing and administrative expenses

6,039

 

29.1

 

5,991

 

29.4

 

0.8

Research and development expense

3,232

 

15.6

 

3,224

 

15.8

 

0.2

Interest (income) expense, net

4

 

0.0

 

54

 

0.3

   

Other (income) expense, net

16

 

0.1

 

978

 

4.8

   

Restructuring

104

 

0.5

 

64

 

0.3

   

Earnings before provision for taxes on income

4,218

 

20.3

 

3,122

 

15.3

 

35.1

Provision for taxes on income

208

 

1.0

 

80

 

0.4

 

160.0

Net earnings

$   4,010

 

19.3

 

$   3,042

 

14.9

 

31.8

                   

Net earnings per share (Diluted)

$     1.50

     

$     1.12

     

33.9

                   

Average shares outstanding (Diluted)

2,669.1

     

2,724.0

       
                   

Effective tax rate

4.9

%

   

2.6

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$   5,628

 

27.1

 

$   6,046

 

29.6

 

(6.9)

Net earnings

$   5,027

 

24.2

 

$   5,372

 

26.3

 

(6.4)

Net earnings per share (Diluted)

$     1.88

     

$     1.97

     

(4.6)

Effective tax rate

10.7

%

   

11.1

%

     
                   

(1) See Reconciliation of Non-GAAP Financial Measures.

                 

 

 

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings

                 
                   

(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS

                   
 

2019

 

2018

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 82,059

 

100.0

 

$ 81,581

 

100.0

 

0.6

Cost of products sold

27,556

 

33.6

 

27,091

 

33.2

 

1.7

Gross Profit

54,503

 

66.4

 

54,490

 

66.8

 

0.0

Selling, marketing and administrative expenses

22,178

 

27.0

 

22,540

 

27.6

 

(1.6)

Research and development expense

11,355

 

13.8

 

10,775

 

13.2

 

5.4

In-process research and development

890

 

1.1

 

1,126

 

1.4

   

Interest (income) expense, net

(39)

 

0.0

 

394

 

0.5

   

Other (income) expense, net

2,525

 

3.1

 

1,405

 

1.7

   

Restructuring

266

 

0.3

 

251

 

0.3

   

Earnings before provision for taxes on income

17,328

 

21.1

 

17,999

 

22.1

 

(3.7)

Provision for taxes on income

2,209

 

2.7

 

2,702

 

3.3

 

(18.2)

Net earnings

$ 15,119

 

18.4

 

$ 15,297

 

18.8

 

(1.2)

                   

Net earnings per share (Diluted)

$     5.63

     

$     5.61

     

0.4

                   

Average shares outstanding (Diluted)

2,684.3

     

2,728.7

       
                   

Effective tax rate

12.7

%

   

15.0

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$ 28,225

 

34.4

 

$ 26,698

 

32.7

 

5.7

Net earnings

$ 23,310

 

28.4

 

$ 22,315

 

27.4

 

4.5

Net earnings per share (Diluted)

$     8.68

     

$     8.18

     

6.1

Effective tax rate

17.4

%

   

16.4

%

     
                   

(1) See Reconciliation of Non-GAAP Financial Measures.

                 

 

 

 

Johnson & Johnson and Subsidiaries

                           

Reconciliation of Non-GAAP Financial Measures

                           
   

Fourth Quarter

 

% Incr. /

   

Twelve Months

 

% Incr. /

 

(Dollars in Millions Except Per Share Data)

 

2019

 

2018

 

(Decr.)

   

2019

 

2018

 

(Decr.)

 
                             

Earnings before provision for taxes on income - as reported

 

$        4,218

 

3,122

 

35.1

%

 

$    17,328

 

17,999

 

(3.7)

%

Litigation expense, net

 

264

 

1,288

       

5,096

 

1,991

     

Intangible asset amortization expense

 

1,142

 

1,073

       

4,528

 

4,357

     

In-process research and development

 

-

 

-

       

890

 

1,126

     

Restructuring/Other (1)

 

251

 

227

       

611

 

700

     

Actelion acquisition related cost

 

62

 

43

       

185

 

243

     

Auris Health acquisition related cost

 

16

 

-

       

72

 

-

     

AMO acquisition related cost

 

12

 

27

       

62

 

109

     

Unrealized loss/(gain) on securities

 

(350)

 

182

       

(567)

 

179

     

Contingent liability reversal

 

-

 

-

       

-

 

(184)

     

Tax legislation and related impacts

 

-

 

72

       

-

 

72

     

Other

 

13

 

12

       

20

 

106

     
                             

Earnings before provision for taxes on income - as adjusted

 

$        5,628

 

6,046

 

(6.9)

%

 

$    28,225

 

26,698

 

5.7

%

                             

Net Earnings - as reported

 

$        4,010

 

3,042

 

31.8

%

 

$    15,119

 

15,297

 

(1.2)

%

Litigation expense, net

 

251

 

1,113

       

4,015

 

1,722

     

Intangible asset amortization expense

 

1,008

 

957

       

3,844

 

3,888

     

In-process research and development

 

-

 

-

       

703

 

859

     

Restructuring/Other

 

214

 

190

       

511

 

585

     

Actelion acquisition related cost

 

58

 

39

       

172

 

232

     

Auris Health acquisition related cost

 

12

 

-

       

56

 

-

     

AMO acquisition related cost

 

12

 

21

       

52

 

89

     

Unrealized loss/(gain) on securities

 

(277)

 

143

       

(448)

 

141

     

Contingent liability reversal

 

-

 

-

       

-

 

(184)

     

Tax legislation and related impacts (2)

 

(184)

 

(137)

       

(575)

 

(390)

     

Other

 

(77)

 

4

       

(139)

 

76

     
                             

Net Earnings - as adjusted

 

$        5,027

 

5,372

 

(6.4)

%

 

$    23,310

 

22,315

 

4.5

%

                             

Diluted Net Earnings per share - as reported

 

$          1.50

 

1.12

 

33.9

%

 

$        5.63

 

5.61

 

0.4

%

                             

Litigation expense, net

 

0.10

 

0.41

       

1.50

 

0.63

     

Intangible asset amortization expense

 

0.38

 

0.35

       

1.43

 

1.42

     

In-process research and development

 

-

 

-

       

0.26

 

0.32

     

Restructuring/Other

 

0.08

 

0.07

       

0.19

 

0.21

     

Actelion acquisition related cost

 

0.02

 

0.01

       

0.06

 

0.09

     

Auris Health acquisition related cost

 

-

 

-

       

0.02

 

-

     

AMO acquisition related cost

 

-

 

0.01

       

0.02

 

0.03

     

Unrealized loss/(gain) on securities

 

(0.10)

 

0.05

       

(0.17)

 

0.05

     

Contingent liability reversal

 

-

 

-

       

-

 

(0.07)

     

Tax legislation and related impacts

 

(0.07)

 

(0.05)

       

(0.21)

 

(0.14)

     

Other

 

(0.03)

 

-

       

(0.05)

 

0.03

     
                             

Diluted Net Earnings per share - as adjusted

 

$          1.88

 

1.97

 

(4.6)

%

 

$        8.68

 

8.18

 

6.1

%

                             

Operational Diluted Net Earnings per share - as adjusted at 2017 foreign currency exchange rates

     

2.02

           

8.06

     
                             

Impact of currency at 2018 foreign currency exchange rates

 

0.03

 

(0.05)

       

0.22

 

0.12

     
                             

Operational Diluted Net Earnings per share - as adjusted at 2018 foreign currency exchange rates

 

$          1.91

 

1.97

 

(3.0)

%

 

$        8.90

 

8.18

 

8.8

%

                             
                             

(1) Includes $70M recorded in cost of products sold and $77M recorded in other (income) expense for the fourth quarter 2019, and $32M recorded in cost of products sold

     

     and $131M recorded in other (income) expense for the fourth quarter 2018.

                         

     Includes $151M recorded in cost of products sold and $194M recorded in other (income) expense for twelve months YTD 2019, and $105M recorded in cost of products sold

   

     and $344M recorded in other (income) expense for twelve months YTD 2018.

                         
                             

(2) Includes foreign currency translation

                           

 

 

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Adjusted Operational Sales Growth

 FOURTH QUARTER 2019 ACTUAL vs. 2018 ACTUAL 

                 
                 

 Segments 

     
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

 WW As Reported 

 

0.9%

 

3.5%

 

(0.5)%

 

1.7%

 U.S. 

 

(0.6)%

 

3.9%

 

(2.4)%

 

1.4%

 International 

 

2.0%

 

2.9%

 

1.3%

 

2.1%

                 

 WW Currency 

 

(1.2)

 

(0.9)

 

(0.7)

 

(0.9)

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(2.0)

 

(2.2)

 

(1.4)

 

(1.9)

                 

 WW Operational 

 

2.1%

 

4.4%

 

0.2%

 

2.6%

 U.S. 

 

(0.6)%

 

3.9%

 

(2.4)%

 

1.4%

 International 

 

4.0%

 

5.1%

 

2.7%

 

4.0%

                 

Beauty

               

RoC

 

0.6

         

0.1

 U.S. 

 

1.4

         

0.2

 International 

 

0.0

         

0.0

                 

Beauty

               

Dr. Ci Labo - Japan

 

(1.7)

         

(0.3)

 U.S. 

 

0.0

         

0.0

 International 

 

(2.9)

         

(0.6)

                 

Specialty Surgery

               

Advanced Sterilization Products

         

2.4

 

0.8

 U.S. 

         

3.0

 

0.9

 International 

         

2.0

 

0.7

                 

Baby Care

               

Baby Center

 

0.3

         

0.1

 U.S. 

 

0.8

         

0.1

 International 

 

0.0

         

0.0

                 

All Other Acquisitions and Divestitures

 

0.0

 

0.1

 

0.1

 

0.1

 U.S. 

 

0.0

 

0.1

 

0.0

 

0.1

 International 

 

0.1

 

0.0

 

0.1

 

0.1

                 

WW Adjusted Operational

 

1.4%

 

4.5%

 

2.7%

 

3.4%

 U.S. 

 

1.6%

 

4.1%

 

0.6%

 

2.7%

 International 

 

1.3%

 

5.1%

 

4.7%

 

4.1%

                 

Note:Percentages are based on actual, non-rounded figures and may not sum

   

 

 

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Adjusted Operational Sales Growth

 TWELVE MONTHS 2019 ACTUAL vs. 2018 ACTUAL 

                 
 

 Segments 

                 
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices

 

 Total 

 WW As Reported 

 

0.3%

 

3.6%

 

(3.8)%

 

0.6%

 U.S. 

 

1.4%

 

2.5%

 

(3.5)%

 

0.5%

 International 

 

(0.4)%

 

5.0%

 

(4.1)%

 

0.7%

                 

 WW Currency 

 

(2.7)

 

(2.2)

 

(2.1)

 

(2.2)

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(4.6)

 

(5.1)

 

(4.0)

 

(4.6)

                 

 WW Operational 

 

3.0%

 

5.8%

 

(1.7)%

 

2.8%

 U.S. 

 

1.4%

 

2.5%

 

(3.5)%

 

0.5%

 International 

 

4.2%

 

10.1%

 

(0.1)%

 

5.3%

                 

Beauty

               

Nizoral

 

0.2

         

0.0

 U.S. 

 

0.1

         

0.0

 International 

 

0.3

         

0.1

                 

OTC

               

Zarbees

 

(0.4)

         

(0.1)

 U.S. 

 

(1.1)

         

(0.1)

 International 

 

0.0

         

0.0

                 

Diabetes Care

               

LifeScan

         

3.8

 

1.3

 U.S. 

         

2.9

 

0.9

 International 

         

4.6

 

1.7

                 

Beauty

               

RoC

 

0.7

         

0.1

 U.S. 

 

1.3

         

0.2

 International 

 

0.2

         

0.0

                 

Beauty

               

Dr. Ci Labo - Japan

 

(2.3)

         

(0.4)

 U.S. 

 

0.0

         

0.0

 International 

 

(3.9)

         

(0.8)

                 

Specialty Surgery

               

Advanced Sterilization Products

         

1.6

 

0.6

 U.S. 

         

2.2

 

0.7

 International 

         

1.0

 

0.4

                 

Baby Care

               

Baby Center

 

0.1

         

0.0

 U.S. 

 

0.3

         

0.0

 International 

 

0.0

         

0.0

                 

All Other Acquisitions and Divestitures

 

0.1

 

0.0

 

0.1

 

0.1

 U.S. 

 

0.0

 

0.1

 

0.1

 

0.1

 International 

 

0.1

 

0.0

 

0.1

 

0.1

                 

WW Adjusted Operational

 

1.4%

 

5.8%

 

3.9%

 

4.5%

 U.S. 

 

2.1%

 

2.7%

 

1.8%

 

2.3%

 International 

 

1.0%

 

10.1%

 

5.7%

 

6.7%

                 

Note:Percentages are based on actual, non-rounded figures and may not sum

   

 

 

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FOURTH QUARTER

 

TWELVE MONTHS

         

% Change

         

% Change