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Johnson & Johnson Reports 2020 Fourth-Quarter And Full Year Results
Jan 26, 2021
- 2020 Fourth-Quarter Sales of $22.5 Billion reflecting growth of 8.3%, operational growth of 7.1%* and adjusted operational growth of 7.3%*
- 2020 Full-Year Sales of $82.6 Billion reflecting growth of 0.6%, operational growth of 1.2%* and adjusted operational growth of 1.5%*
- 2020 Fourth-Quarter EPS of $0.65 decreased 56.7%; adjusted EPS of $1.86 decreased 1.1%*
- 2020 Full-Year EPS of $5.51 decreased 2.1%; adjusted EPS of $8.03 decreased 7.5%*
- Company provides 2021 guidance of adjusted operational sales growth of 8.8%* and adjusted operational EPS growth of 16.4%*

NEW BRUNSWICK, N.J., Jan. 26, 2021 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2020. "Our notable full year performance reflects the continued confidence from patients, physicians, customers and consumers in our life-enhancing products and medicines, particularly throughout the COVID-19 pandemic," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm incredibly proud of our Johnson & Johnson teams around the world for going above and beyond to meet stakeholder needs. These efforts, and our commitment to families around the world as the largest broad-based healthcare company, enabled us to lead in the fight against COVID-19. We continue to progress our COVID-19 vaccine candidate and look forward to sharing details from our Phase 3 study soon. Johnson & Johnson was built for times like these, and I am extremely confident in our ability to deliver lasting value and continued innovation in 2021 and for years to come."

OVERALL FINANCIAL RESULTS:

 

FOURTH QUARTER

   

TWELVE MONTHS

 

($ in Millions, except EPS)

2020

2019

%  Change

 

2020

2019

%  Change

Reported Sales

$ 22,475

$ 20,747

8.3%

 

$ 82,584

$ 82,059

0.6%

Net Earnings

1,738

4,010

(56.7)%

 

14,714

15,119

(2.7)%

EPS (diluted)

$      0.65

$      1.50

(56.7)%

 

$      5.51

$      5.63

(2.1)%

               

Non-GAAP*

FOURTH QUARTER

   

TWELVE MONTHS

 

($ in Millions, except EPS)

2020

2019

%  Change

 

2020

2019

%  Change

Operational Sales1,2

N/A

N/A

7.1%

 

N/A

N/A

1.2%

Adjusted Operational Sales1,3

N/A

N/A

7.3%

 

N/A

N/A

1.5%

Adjusted Net Earnings1,4

4,965

5,027

(1.2)%

 

21,433

23,310

(8.1)%

Adjusted EPS (diluted)1,4

$      1.86

$      1.88

(1.1)%

 

$      8.03

$      8.68

(7.5)%

 

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

4 Excludes intangible amortization expense and special items

REGIONAL SALES RESULTS: 

 

FOURTH QUARTER

%  Change

($ in Millions) 1

20202

20192

Reported2

Operational1,2

Currency2

Adjusted
Operational1,3

U.S.

$ 11,809

$ 10,774

9.6%

9.6%

-

9.6

International

10,666

9,973

7.0%

4.3%

2.7

4.8

Worldwide

$ 22,475

$ 20,747

8.3%

7.1%

1.2

7.3

             
             
             
 

TWELVE MONTHS

%  Change

($ in Millions) 1

20202

20192

Reported2

Operational1,2

Currency2

Adjusted
Operational1,3

U.S.

$ 43,133

$ 42,097

2.5%

2.5

-

2.8

International

39,451

39,962

(1.3)%

(0.2)

(1.1)

0.2

Worldwide

$ 82,584

$ 82,059

0.6%

1.2

(0.6)

1.5

 

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) 1

20201

20191

Reported2

Operational1,2

Currency1

Adjusted
Operational1,3

Consumer Health

$       3,618

$       3,567

1.4%

2.0

(0.6)

2.1

Pharmaceutical

12,268

10,548

16.3%

14.6

1.7

14.6

Medical Devices

6,589

6,632

(0.7)%

(2.2)

1.5

(1.5)

Worldwide

$     22,475

$     20,747

8.3%

7.1

1.2

7.3

             
             
 

TWELVE MONTHS

%  Change

($ in Millions) 1

20201

20191

Reported2

Operational1,2

Currency1

Adjusted
Operational1,3

Consumer Health

$     14,053

$     13,898

1.1%

3.0

(1.9)

3.1

Pharmaceutical

45,572

42,198

8.0%

8.2

(0.2)

8.4

Medical Devices

22,959

25,963

(11.6)%

(11.4)

(0.2)

(10.5)

Worldwide

$     82,584

$     82,059

0.6%

1.2

(0.6)

1.5

 

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 2020 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.1%* driven by U.S. growth in over-the-counter products including TYLENOL analgesics, PEPCID and ZYRTEC; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products and wound care products.  Growth was negatively impacted by COVID-19 primarily in skin health/beauty and international baby care partially offset by increased COVID-19 demand in oral care products.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 8.4%* 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, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis,   INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily 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, declined by 10.5%*. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products. Results reflect market recovery in the second half of 2020. 

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

VELYS Robotic-Assisted Solution- Receives 510(k) FDA Clearance Designed for Use with the ATTUNE Total Knee System ¹ 

(press release)

DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)- Becomes the First FDA-Approved Treatment for Patients with Newly Diagnosed Light Chain (AL) Amyloidosis ¹

(press release)

CABENUVA (rilpivirine/cabotegravir)- U.S. FDA Approval and European Commission Authorization of the first complete long acting injectable HIV treatment ¹

(press release)

(press release)

TREMFYA (guselkumab)- European Commission Approves First-in-Class treatment for Active Psoriatic Arthritis (PsA)

(press release)

Regulatory Submissions

Amivantamab- Submission of U.S. FDA and European Marketing Authorization Application for Treatment of Patients with Metastatic Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations

(press release)
(press release)

BCMA CAR-T Therapy (ciltacabtagene autoleucel)- Rolling Submission of a Biologics License Application to U.S. FDA for the Treatment of Relapsed and/or Refractory Multiple Myeloma

(press release)

DARZALEX (daratumumab and hyaluronidase-fihj)- Janssen Submits Applications in U.S. and EU Seeking Approval of DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)/DARZALEX (daratumumab) Subcutaneous (SC) Formulation in Combination With Pomalidomide and Dexamethasone for Patients With Relapsed or Refractory Multiple Myeloma

(press release)

Paliperidone Palmitate 6-Month- Submission of Supplemental New Drug Application to U.S. FDA and European Marketing Authorization for Treatment of Schizophrenia in Adults

(press release)

(press release)

XARELTO (rivaroxaban)- Submission of Application to U.S. FDA for New Indication to Expand Use in Patients with Peripheral Artery Disease

(press release)

Other

Janssen Receives Positive CHMP Opinion for SPRAVATO (esketamine Nasal Spray) for the Rapid Reduction of Depressive Symptoms in a Psychiatric Emergency for Patients with Major Depressive Disorder

(press release)

Janssen Acquires Rights to Novel Gene Therapy, Pioneering Treatment Solutions for Late-Stage Age-Related Macular Degeneration

(press release)

Johnson & Johnson Initiates Second Global Phase 3 Clinical Trial of its Janssen COVID-19 Vaccine Candidate

(press release)

 

1 Subsequent to the quarter

FULL-YEAR 2021 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 2021

($ in Billions, except EPS)

 

Adjusted Operational Sales1,2

Change vs. Prior Year

8.0% - 9.5%

Operational Sales2

Change vs. Prior Year

$88.8B - $90.0B

7.5% – 9.0%

Estimated Reported Sales3

Change vs. Prior Year

$90.5B - $91.7B

9.5% – 11.0%

   

Adjusted Operational EPS (Diluted)2,4

Change vs. Prior Year

$9.25 - $9.45

15.2% - 17.7%

Adjusted EPS (Diluted)3,4

Change vs. Prior Year

$9.40 - $9.60

17.1% - 19.6%

 

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 2021 = $1.21 (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 8:30 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. 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: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans, as a result of the COVID-19 pandemic, 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 29, 2019, 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

 

2020

 

2019

 

Total

 

Operations

 

Currency

 

2020

 

2019

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$ 11,809

 

10,774

 

9.6

%

9.6

 

-

 

$ 43,133

 

42,097

 

2.5

%

2.5

 

-

                                       

Europe

5,271

 

4,663

 

13.0

 

7.7

 

5.3

 

18,980

 

18,466

 

2.8

 

2.0

 

0.8

Western Hemisphere excluding U.S.

1,404

 

1,495

 

(6.1)

 

2.9

 

(9.0)

 

5,335

 

5,941

 

(10.2)

 

0.4

 

(10.6)

Asia-Pacific, Africa

3,991

 

3,815

 

4.6

 

0.7

 

3.9

 

15,136

 

15,555

 

(2.7)

 

(3.1)

 

0.4

International

10,666

 

9,973

 

7.0

 

4.3

 

2.7

 

39,451

 

39,962

 

(1.3)

 

(0.2)

 

(1.1)

                                       

Worldwide

$ 22,475

 

20,747

 

8.3

%

7.1

 

1.2

 

$ 82,584

 

82,059

 

0.6

%

1.2

 

(0.6)

                                       

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

 

2020

 

2019

 

Total

 

Operations

 

Currency

 

2020

 

2019

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

segment of business

                                     
                                       

Consumer Health

                                     

    U.S.

$   1,509

 

1,470

 

2.7

%

2.7

 

-

 

$   6,362

 

5,839

 

9.0

%

9.0

 

-

    International

2,109

 

2,097

 

0.5

 

1.5

 

(1.0)

 

7,691

 

8,059

 

(4.6)

 

(1.3)

 

(3.3)

 

3,618

 

3,567

 

1.4

 

2.0

 

(0.6)

 

14,053

 

13,898

 

1.1

 

3.0

 

(1.9)

                                       

Pharmaceutical

                                     

    U.S.

7,116

 

6,169

 

15.3

 

15.3

 

-

 

25,735

 

23,874

 

7.8

 

7.8

 

-

    International

5,152

 

4,379

 

17.7

 

13.5

 

4.2

 

19,837

 

18,324

 

8.3

 

8.8

 

(0.5)

 

12,268

 

10,548

 

16.3

 

14.6

 

1.7

 

45,572

 

42,198

 

8.0

 

8.2

 

(0.2)

                                       

Medical Devices

                                     

    U.S.

3,184

 

3,135

 

1.5

 

1.5

 

-

 

11,036

 

12,384

 

(10.9)

 

(10.9)

 

-

    International

3,405

 

3,497

 

(2.6)

 

(5.5)

 

2.9

 

11,923

 

13,579

 

(12.2)

 

(11.8)

 

(0.4)

 

6,589

 

6,632

 

(0.7)

 

(2.2)

 

1.5

 

22,959

 

25,963

 

(11.6)

 

(11.4)

 

(0.2)

                                       

U.S.

11,809

 

10,774

 

9.6

 

9.6

 

-

 

43,133

 

42,097

 

2.5

 

2.5

 

-

International

10,666

 

9,973

 

7.0

 

4.3

 

2.7

 

39,451

 

39,962

 

(1.3)

 

(0.2)

 

(1.1)

Worldwide

$ 22,475

 

20,747

 

8.3

%

7.1

 

1.2

 

$ 82,584

 

82,059

 

0.6

%

1.2

 

(0.6)

                                     

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

                   
 

2020

 

2019

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 22,475

 

100.0

 

$ 20,747

 

100.0

 

8.3

Cost of products sold

7,814

 

34.8

 

7,134

 

34.4

 

9.5

Gross Profit

14,661

 

65.2

 

13,613

 

65.6

 

7.7

Selling, marketing and administrative expenses

6,457

 

28.7

 

6,039

 

29.1

 

6.9

Research and development expense

4,032

 

17.9

 

3,232

 

15.6

 

24.8

In-process research and development

37

 

0.2

 

-

 

-

   

Interest (income) expense, net

74

 

0.3

 

4

 

0.0

   

Other (income) expense, net

2,354

 

10.5

 

16

 

0.1

   

Restructuring

60

 

0.3

 

104

 

0.5

   

Earnings before provision for taxes on income

1,647

 

7.3

 

4,218

 

20.3

 

(61.0)

Provision for/(Benefit from) taxes on income

(91)

 

(0.4)

 

208

 

1.0

 

(143.8)

Net earnings

$   1,738

 

7.7

 

$   4,010

 

19.3

 

(56.7)

                   

Net earnings per share (Diluted)

$     0.65

     

$     1.50

     

(56.7)

                   

Average shares outstanding (Diluted)

2,669.2

     

2,669.1

       
                   

Effective tax rate

(5.5)

%

   

4.9

%

     
                   

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

                 

Earnings before provision for taxes on income

$   5,601

 

24.9

 

$   5,628

 

27.1

 

(0.5)

Net earnings

$   4,965

 

22.1

 

$   5,027

 

24.2

 

(1.2)

Net earnings per share (Diluted)

$     1.86

     

$     1.88

     

(1.1)

Effective tax rate

11.4

%

   

10.7

%

     
                   

(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

                   
 

2020

 

2019

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 82,584

 

100.0

 

$ 82,059

 

100.0

 

0.6

Cost of products sold

28,427

 

34.4

 

27,556

 

33.6

 

3.2

Gross Profit

54,157

 

65.6

 

54,503

 

66.4

 

(0.6)

Selling, marketing and administrative expenses

22,084

 

26.8

 

22,178

 

27.0

 

(0.4)

Research and development expense

12,159

 

14.7

 

11,355

 

13.8

 

7.1

In-process research and development

181

 

0.2

 

890

 

1.1

   

Interest (income) expense, net

90

 

0.1

 

(39)

 

0.0

   

Other (income) expense, net

2,899

 

3.5

 

2,525

 

3.1

   

Restructuring

247

 

0.3

 

266

 

0.3

   

Earnings before provision for taxes on income

16,497

 

20.0

 

17,328

 

21.1

 

(4.8)

Provision for taxes on income

1,783

 

2.2

 

2,209

 

2.7

 

(19.3)

Net earnings

$ 14,714

 

17.8

 

$ 15,119

 

18.4

 

(2.7)

                   

Net earnings per share (Diluted)

$     5.51

     

$     5.63

     

(2.1)

                   

Average shares outstanding (Diluted)

2,670.7

     

2,684.3

       
                   

Effective tax rate

10.8

%

   

12.7

%

     
                   

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

                 

Earnings before provision for taxes on income

$ 25,428

 

30.8

 

$ 28,225

 

34.4

 

(9.9)

Net earnings

$ 21,433

 

26.0

 

$ 23,310

 

28.4

 

(8.1)

Net earnings per share (Diluted)

$     8.03

     

$     8.68

     

(7.5)

Effective tax rate

15.7

%

   

17.4

%

     
                   

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

 

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures 

               
 

Fourth Quarter

 

Twelve Months Ended

(Dollars in Millions Except Per Share Data)

2020

 

2019

 

2020

 

2019

Net Earnings, after tax- as reported

$1,738

 

$4,010

 

$14,714

 

$15,119

               

Pre-tax Adjustments 

             

Intangible Asset Amortization expense

1,234

 

1,142

 

4,660

 

4,528

Litigation expense, net

2,902

 

264

 

5,112

 

5,096

IPR&D

37

 

-

 

181

 

890

Restructuring related

85

 

251

 

448

 

611

Acquisition and Integration related ¹

14

 

90

 

(1,073)

 

319

Unrealized (gains)/losses on securities 

(373)

 

(350)

 

(547)

 

(567)

Medical Device Regulation 2

55

 

-

 

144

 

-

Other

-

 

13

 

6

 

20

               

Tax Adjustments

             

Tax impact on special item adjustments 3

(606)

 

(123)

 

(1,608)

 

(1,977)

Tax legislation and other tax related

(121)

 

(270)

 

(604)

 

(729)

Adjusted Net Earnings, after tax

$4,965

 

$5,027

 

$21,433

 

$23,310

Average shares outstanding (Diluted)

2,669.2

 

2,669.1

 

2,670.7

 

2,684.3

Adjusted net earnings per share (Diluted)

$1.86

 

$1.88

 

$8.03

 

$8.68

Operational adjusted net earnings per share (Diluted)

$1.82

     

$8.00

   
   
 

Notes:

1

Acquisition and integration related costs for 2020 primarily includes a Contingent Consideration reversal of $1,148M related to the timing of certain developmental milestones associated with the Auris Health acquisition. 

   

2

European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company's previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices are required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations.  The Company has excluded only external third-party regulatory and consulting costs from its Medical Devices operating segments' measures of profit and loss used for making operating decisions and assessing performance.

   

3

The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

   
 

Prior year amounts have been reclassified to conform to current year disclosure

 

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

                 

Adjusted Operational Sales Growth

 FOURTH QUARTER 2020 ACTUAL vs. 2019 ACTUAL 

                 

 Segments 

                 
   

Consumer Health

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

                 

 WW As Reported 

 

1.4%

 

16.3%

 

(0.7)%

 

8.3%

 U.S. 

 

2.7%

 

15.3%

 

1.5%

 

9.6%

 International 

 

0.5%

 

17.7%

 

(2.6)%

 

7.0%

                 

 WW Currency 

 

(0.6)

 

1.7

 

1.5

 

1.2

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(1.0)

 

4.2

 

2.9

 

2.7

                 

 WW Operational 

 

2.0%

 

14.6%

 

(2.2)%

 

7.1%

 U.S. 

 

2.7%

 

15.3%

 

1.5%

 

9.6%

 International 

 

1.5%

 

13.5%

 

(5.5)%

 

4.3%

                 

General Surgery

               

Advanced Sterilization Products

         

0.6

 

0.2

 U.S. 

         

0.0

 

0.0

 International 

         

1.0

 

0.4

                 

All Other Acquisitions and Divestitures

 

0.1

 

0.0

 

0.1

 

0.1

 U.S. 

 

0.1

 

(0.1)

 

0.2

 

0.0

 International 

 

0.1

 

0.2

 

0.0

 

0.1

                 

WW Adjusted Operational

 

2.1%

 

14.6%

 

(1.5)%

 

7.3%

 U.S. 

 

2.8%

 

15.2%

 

1.7%

 

9.6%

 International 

 

1.6%

 

13.7%

 

(4.4)%

 

4.8%

                 

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 2020 ACTUAL vs. 2019 ACTUAL 

 

 Segments 

                 
   

Consumer Health

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

                 

 WW As Reported 

 

1.1%

 

8.0%

 

(11.6)%

 

0.6%

 U.S. 

 

9.0%

 

7.8%

 

(10.9)%

 

2.5%

 International 

 

(4.6)%

 

8.3%

 

(12.2)%

 

(1.3)%

                 

 WW Currency 

 

(1.9)

 

(0.2)

 

(0.2)

 

(0.6)

 U.S. 

 

-

 

-

 

-

 

-

 International 

 

(3.3)

 

(0.5)

 

(0.4)

 

(1.1)

                 

 WW Operational 

 

3.0%

 

8.2%

 

(11.4)%

 

1.2%

 U.S. 

 

9.0%

 

7.8%

 

(10.9)%

 

2.5%

 International 

 

(1.3)%

 

8.8%

 

(11.8)%

 

(0.2)%

                 

Skin Health / Beauty

               

Dr. Ci Labo - Japan

 

(0.1)

         

0.0

 U.S. 

 

0.0

         

0.0

 International 

 

(0.2)

         

0.0

                 

General Surgery

               

Advanced Sterilization Products

         

0.8

 

0.3

 U.S. 

         

0.6

 

0.2

 International 

         

1.0

 

0.4

                 

Baby Care

               

Baby Center

 

0.2

         

0.0

 U.S. 

 

0.5

         

0.1

 International 

 

0.0

         

0.0

                 

All Other Acquisitions and Divestitures

 

0.0

 

0.2

 

0.0

 

0.1

 U.S. 

 

0.0

 

0.0

 

0.0

 

0.0

 International 

 

(0.1)

 

0.3

 

0.0

 

0.1

                 

WW Adjusted Operational

 

3.1%

 

8.4%

 

(10.5)%

 

1.5%

 U.S. 

 

9.5%

 

7.8%

 

(10.2)%

 

2.8%

 International 

 

(1.5)%

 

9.1%

 

(10.9)%

 

0.2%

                 

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

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

     

REPORTED SALES vs. PRIOR PERIOD ($MM)

 
 

FOURTH QUARTER

     

TWELVE MONTHS

 
         

% Change

       

% Change

 
   

2020

 

2019

Reported

Operational (1)

Currency

       

2020

 

2019

Reported

Operational (1)

Currency

 

CONSUMER HEALTH SEGMENT (2,3) 

                                   

OTC

                                   

US

 

$          543

 

542

0.1%

0.1%

-

       

$        2,460

 

2,010

22.4%

22.4%

-

 

Intl

 

642

 

653

-1.7%

-2.9%

1.2%

       

2,364

 

2,434

-2.9%

-1.2%

-1.7%

 

WW

 

1,185

 

1,195

-0.8%

-1.5%

0.7%

       

4,824

 

4,444

8.5%

9.4%

-0.9%

 

SKIN HEALTH / BEAUTY(4)

                                   

US

 

583

 

582

0.2%

0.2%

-

       

2,350

 

2,392

-1.7%

-1.7%

-

 

Intl

 

594

 

568

4.6%

5.0%

-0.4%

       

2,100

 

2,201

-4.6%

-2.3%

-2.3%

 

WW

 

1,177

 

1,150

2.4%

2.6%

-0.2%

       

4,450

 

4,593

-3.1%

-2.0%

-1.1%

 

ORAL CARE

                                   

US

 

173

 

159

8.3%

8.3%

-

       

683

 

621

9.9%

9.9%

-

 

Intl

 

264

 

233

13.5%

14.5%

-1.0%

       

958

 

906

5.7%

9.6%

-3.9%

 

WW

 

437

 

393

11.4%

12.0%

-0.6%

       

1,641

 

1,528

7.4%

9.7%

-2.3%

 

BABY CARE

                                   

US

 

97

 

85

14.3%

14.3%

-

       

376

 

362

3.7%

3.7%

-

 

Intl

 

310

 

336

-7.8%

-3.6%

-4.2%

       

1,141

 

1,313

-13.1%

-7.3%

-5.8%

 

WW

 

407

 

421

-3.4%

0.0%

-3.4%

       

1,517

 

1,675

-9.4%

-4.9%

-4.5%

 

WOMEN'S HEALTH

                                   

US

 

3

 

3

11.8%

11.8%

-

       

13

 

12

8.2%

8.2%

-

 

Intl

 

234

 

250

-6.5%

-3.1%

-3.4%

       

888

 

974

-8.8%

-2.9%

-5.9%

 

WW

 

237

 

253

-6.3%

-2.9%

-3.4%

       

901

 

986

-8.6%

-2.7%

-5.9%

 

WOUND CARE / OTHER

                                   

US

 

110

 

98

11.8%

11.8%

-

       

480

 

441

8.9%

8.9%

-

 

Intl

 

65

 

57

12.4%

13.0%

-0.6%

       

240

 

230

4.1%

7.3%

-3.2%

 

WW

 

175

 

155

12.0%

12.2%

-0.2%

       

720

 

671

7.2%

8.3%

-1.1%

 
                                     

TOTAL CONSUMER HEALTH

                                   

US

 

1,509

 

1,470

2.7%

2.7%

-

       

6,362

 

5,839

9.0%

9.0%

-

 

Intl

 

2,109

 

2,097

0.5%

1.5%

-1.0%

       

7,691

 

8,059

-4.6%

-1.3%

-3.3%

 

WW

 

$       3,618

 

3,567

1.4%

2.0%

-0.6%

       

$      14,053

 

13,898

1.1%

3.0%

-1.9%

 
                                     
                                     

See footnotes at end of schedule

                     
                                     
                                     
                                     
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

     

REPORTED SALES vs. PRIOR PERIOD ($MM)

 
 

FOURTH QUARTER

     

TWELVE MONTHS

 
   

% Change

       

% Change

 

PHARMACEUTICAL SEGMENT (2,5)

 

2020

 

2019

Reported

Operational (1)

Currency

       

2020

 

2019

Reported

Operational (1)

Currency

 
                                     

IMMUNOLOGY

                                   

US

 

$       2,845

 

2,517

13.0%

13.0%

-

       

$      10,175

 

9,641

5.5%

5.5%

-

 

Intl

 

1,261

 

1,005

25.4%

21.1%

4.3%

       

4,880

 

4,309

13.2%

14.0%

-0.8%

 

WW

 

4,105

 

3,522

16.6%

15.3%

1.3%

       

15,055

 

13,950

7.9%

8.2%

-0.3%

 

REMICADE

                                   

US 

 

656

 

755

-13.1%

-13.1%

-

       

2,508

 

3,079

-18.5%

-18.5%

-

 

US Exports (6)

 

25

 

68

-62.4%

-62.4%

-

       

346

 

294

18.0%

18.0%

-

 

Intl

 

220

 

212

3.3%

2.7%

0.6%

       

893

 

1,007

-11.4%

-8.6%

-2.8%

 

WW

 

901

 

1,035

-12.9%

-13.1%

0.2%

       

3,747

 

4,380

-14.4%

-13.8%

-0.6%

 

SIMPONI / SIMPONI ARIA

                                   

US

 

315

 

302

4.4%

4.4%

-

       

1,155

 

1,159

-0.3%

-0.3%

-

 

Intl

 

261

 

213

22.9%

18.8%

4.1%

       

1,088

 

1,029

5.8%

7.0%

-1.2%

 

WW

 

576

 

515

12.1%