Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported):
 
October 16, 2018
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12499448&doc=4
 
(Exact name of registrant as specified in its charter)
 
 
New Jersey
I-3215
22-1024240
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)


One Johnson & Johnson Plaza, New Brunswick, New Jersey  08933
 
(Address of Principal Executive Offices)
 (Zip Code)
 
Registrant's telephone number, including area code:
732-524-0400
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
               CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
               CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨




 
 


 
Item 2.02             Results of Operations and Financial Condition
 
On October 16, 2018, Johnson & Johnson issued the attached press release announcing its sales and earnings for the third quarter ended September 30, 2018.

Item 8.01     Other Events
On October 11, 2018, Johnson & Johnson (the Company) determined that it will record an intangible asset impairment charge related to an in-process research and development asset, AL-8176, an investigational drug for the treatment of Respiratory Syncytial Virus (RSV) and human metapneumovirus (hMPV), with a carrying value of $1.7 billion acquired in the acquisition of Alios Biopharma Inc. in 2014.
Late in the fiscal second quarter of 2018, information became available which led the Company to suspend on-going Phase 2B trials on AL-8176 until an analysis of this information was completed. The Company disclosed the trial suspension in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 2, 2018.
In the fiscal third quarter of 2018, further information became available to the Company enabling the Company to reassess the carrying value of the AL-8176 in-process research and development asset. On October 16, 2018, the Company announced that in the fiscal third quarter of 2018 the Company recorded a non-cash after-tax impairment charge of approximately $630 million to the AL-8176 asset primarily representing the impact of the ongoing analysis of the activities related to the development of AL-8176. The charge will be reflected in the Company’s fiscal third quarter 2018 financial results and will be excluded for purposes of adjusted earnings. The Company continues to evaluate information with respect to the development program and will monitor the remaining $900 million intangible asset for further impairment.
Item 9.01            Financial Statements and Exhibits

(d)     Exhibits. 
 
Exhibit No.
 
Description of Exhibit
 
 
Press Release dated October 16, 2018 for the period ended September 30, 2018.
 
 
Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the third quarter.
 
 




 
 
 


 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Johnson & Johnson
 
 
 
 (Registrant)
 
 
 
 
Date: October 16, 2018
By:
/s/ Ronald A. Kapusta
 
 
 
Ronald A. Kapusta
Controller
(Principal Accounting Officer)
 



Exhibit


Exhibit 99.15

Johnson & Johnson Reports 2018 Third-Quarter Results:

2018 Third-Quarter Sales of $20.3 Billion Increased 3.6% versus 2017
2018 Third-Quarter EPS was $1.44
2018 Adjusted Third-Quarter EPS of $2.05 increased 7.9%*

Strong Operational Sales and Adjusted EPS Growth*
Company Increased Sales and EPS Guidance

New Brunswick, N.J. (October 16, 2018) - Johnson & Johnson (NYSE: JNJ) today announced sales of $20.3 billion for the third quarter of 2018, an increase of 3.6% as compared to the third quarter of 2017. Operational sales results increased 5.5%, partially offset by the negative impact of currency of 1.9%. Domestic sales increased 3.6%. International sales increased 3.5%, reflecting operational growth of 7.5% and a negative currency impact of 4.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, domestic sales increased 3.9% and international sales increased 8.5%.*
Net earnings and diluted earnings per share for the third quarter of 2018 were $3.9 billion and $1.44, respectively. Third-quarter 2018 net earnings included after-tax intangible amortization expense of approximately $1.0 billion and a net charge for after-tax special items of approximately $0.7 billion, primarily consisting of a non-cash charge attributed to a partial write-down of an in-process research and development asset associated with the acquisition of Alios BioPharma Inc. Third-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $0.5 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.6 billion and adjusted diluted earnings per share were $2.05, representing increases of 7.3% and 7.9%, respectively, as compared to the same period in 2017.* On an operational basis, adjusted diluted earnings per share also increased 9.5%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.
“We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business,” said Alex Gorsky, Chairman and Chief Executive Officer. “I’m confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future.”
The Company issued sales guidance for the full-year 2018 in a range of $81.0 to $81.4 billion. This reflects an increase in expected operational growth to a range of 5.5% to 6.0%, partially offset by the estimated lower favorable impact of currency. Additionally, the Company increased its adjusted earnings guidance for full-year 2018 to a range of $8.13 to $8.18 per share. This reflects an increase in expected operational EPS growth to a range of 9.3% to 10.0%.









Segment Sales Performance
Worldwide Consumer sales of $3.4 billion for the third quarter 2018 represented an increase of 1.8% versus the prior year, consisting of an operational increase of 4.9% and a negative impact from currency of 3.1%. Domestic sales increased 6.6%, while international sales decreased 1.3%, which reflected an operational increase of 3.7% and a negative currency impact of 5.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, with domestic sales increasing 6.4% and international sales increasing 5.9%.*
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products including MOTRIN and TYLENOL analgesics, ZYRTEC upper respiratory and IMODIUM digestive health products; beauty products including NEUTROGENA, OGX and DR. CI LABO; as well as domestic sales of JOHNSON’s baby care products.
During the quarter, the acquisition of Zarbee’s, Inc., a leader in naturally-based healthcare products, was completed.
Worldwide Pharmaceutical sales of $10.3 billion for the third quarter 2018 represented an increase of 6.7% versus the prior year with an operational increase of 8.2% and a negative impact from currency of 1.5%. Domestic sales increased 4.8%, international sales increased 9.5%, which reflected an operational increase of 13.2% and a negative currency impact of 3.7%. Acquisitions and divestitures had a negligible impact to sales growth in the quarter.
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, TREMFYA (guselkumab), 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, SIMPONI/SIMPONI ARIA (golimumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, 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.





During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for IMBRUVICA (ibrutinib) in combination with rituximab as a non-chemotherapy combination regimen for patients with Waldenström’s Macroglobulinemia, a rare blood cancer. The European Commission (EC) granted marketing authorization for DARZALEX (daratumumab) in combination with VELCADE (bortezomib), a proteasome inhibitor, melphalan, an alkylating agent, and prednisone for the treatment of newly diagnosed multiple myeloma patients who are ineligible for autologous stem cell transplant. In addition, the FDA approved and the EC granted marketing authorization for SYMTUZA (D/C/F/TAF), a complete darunavir-based single-tablet regimen for the treatment of HIV-1 infection.

A New Drug Application was submitted to the FDA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults and erdafitinib, a once-daily, oral pan-fibroblast growth factor receptor (FGFR) inhibitor for the treatment of locally advanced or metastatic urothelial cancer. A supplemental New Drug Application was submitted to the FDA seeking to broaden the use of IMBRUVICA (ibrutinib) in chronic lymphocytic leukemia or small lymphocytic lymphoma to include combination use with a non-chemotherapy agent, obinutuzumab, in the frontline setting. A Type II Variation was submitted to the European Medicines Agency (EMA) seeking to expand the indication of OPSUMIT (macitentan) to include the treatment of adults with inoperable chronic thromboembolic pulmonary hypertension (CTEPH), WHO Group 4, to improve exercise capacity and pulmonary vascular resistance. In addition, the Company also submitted a supplemental Biologics License Application to the FDA and a Type II Variation to the EMA seeking approval of a split dosing regimen for DARZALEX (daratumumab).
Subsequent to the quarter, the FDA approved an additional indication for XARELTO (rivaroxaban) to reduce the risk of major cardiovascular (CV) events, such as CV death, myocardial infarction and stroke, in people with chronic coronary or peripheral artery disease. Additionally, a Marketing Authorization Application was submitted to the EMA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults. The Company also entered into an exclusive worldwide license agreement with Arrowhead Pharmaceuticals, Inc. to develop and commercialize a new treatment for chronic Hepatitis B viral infection.
Worldwide Medical Devices sales of $6.6 billion for the third quarter 2018 represented a decrease of 0.2% versus the prior year consisting of an operational increase of 1.7% and a negative currency impact of 1.9%. Domestic sales increased 0.3%, while international sales decreased 0.6%, which reflected an operational increase of 3.0% and a negative currency impact of 3.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.9%, domestic sales increased 1.2% and international sales increased 4.4%.*
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by the growth of electrophysiology products in the Interventional Solutions business; ACUVUE contact lenses in the Vision business; endocutters and biosurgicals in the Advanced Surgery business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business.
During the quarter, the Company received European CE mark approval for its BRAVO Flow Diverter for use in the treatment of patients suffering from intracranial aneurysms. In addition, the acquisition of Emerging Implant Technologies GmbH, a privately held manufacturer of 3D-printed titanium interbody implants for spinal fusion surgery, was completed. Lastly, the Company accepted the binding offer from Fortive Corporation to acquire its Advanced Sterilization Products business for an aggregate value of approximately $2.8 billion, subject to customary adjustments.
Subsequent to the quarter, the Company announced the completion of the divestiture of its LifeScan business to Platinum Equity for approximately $2.1 billion, subject to customary adjustments.







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.
* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company’s website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.
          
    Johnson & Johnson will conduct a conference call with investors to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can be found on the company's website at www.investor.jnj.com.







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 unexpected clinical trial results, additional analysis of existing clinical data, uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; the impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; 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, global health care reforms and import/export and trade laws; 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 31, 2017, 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 in 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.




Exhibit

Exhibit 99.2O

Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statement of Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; in Millions Except Per Share Figures)
THIRD QUARTER
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017*
 
Percent
 
 
 
Percent
 
 
 
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $ 20,348
 
     100.0
 
 $ 19,650

 
     100.0

 
3.6
Cost of products sold
      6,589
 
       32.4
 
      6,925

 
       35.2

 
(4.9)
Gross Profit
    13,759
 
       67.6
 
    12,725

 
       64.8

 
8.1
Selling, marketing and administrative expenses
      5,543
 
       27.3
 
      5,423

 
       27.6

 
2.2
Research and development expense
      2,508
 
       12.3
 
      2,585

 
       13.2

 
(3.0)
In-process research and development
      1,126
 
         5.6
 

 

 
 
Interest (income) expense, net
           68
 
         0.3
 
         155

 
         0.8

 
 
Other (income) expense, net
             3
 
         0.0
 
       (297)

 
       (1.5)

 
 
Restructuring
           88
 
         0.4
 
           69

 
         0.3

 
 
Earnings before provision for taxes on income
      4,423
 
       21.7
 
      4,790

 
       24.4

 
(7.7)
Provision for taxes on income
         489
 
         2.4
 
      1,026

 
         5.2

 
(52.3)
Net earnings
 $ 3,934
 
       19.3
 
 $ 3,764

 
       19.2

 
4.5
 
 
 
 
 
 
 
 
 
 
Net earnings per share (Diluted)
 $ 1.44
 
 
 
 $ 1.37

 
 
 
5.1
 
 
 
 
 
 
 
 
 
 
Average shares outstanding (Diluted)
2,727.6
 
 
 
2,737.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
11.1
%
 
 
21.4

%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings before provision for taxes and net earnings (1) (A)
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income
 $ 6,780
 
33.3
 
 $ 6,573

 
       33.5

 
3.1
Net earnings
 $ 5,590
 
27.5
 
 $ 5,208

 
       26.5

 
7.3
Net earnings per share (Diluted)
 $ 2.05
 
 
 
 $ 1.90

 
 
 
7.9
Effective tax rate
17.6
%
 
 
20.8

%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) See Reconciliation of Non-GAAP Financial Measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07
 
 
 
 
 
 
 
 
 
 
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.





Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statement of Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; in Millions Except Per Share Figures)
NINE MONTHS
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017*
 
Percent
 
 
 
Percent
 
 
 
Percent
 
Increase
 
Amount
 
to Sales
 
Amount
 
to Sales
 
(Decrease)
Sales to customers
 $ 61,187
 
     100.0
 
 $ 56,255

 
     100.0

 
8.8
Cost of products sold
    20,130
 
       32.9
 
    18,180

 
       32.3

 
10.7
Gross Profit
    41,057
 
       67.1
 
    38,075

 
       67.7

 
7.8
Selling, marketing and administrative expenses
    16,549
 
       27.1
 
    15,475

 
       27.5

 
6.9
Research and development expense
      7,551
 
       12.3
 
      6,951

 
       12.4

 
8.6
In-process research and development
      1,126
 
         1.8
 

 

 
 
Interest (income) expense, net
         340
 
         0.6
 
         360

 
         0.6

 
 
Other (income) expense, net
         427
 
         0.7
 
           11

 
         0.0

 
 
Restructuring
         187
 
         0.3
 
         165

 
         0.3

 
 
Earnings before provision for taxes on income
    14,877
 
       24.3
 
    15,113

 
       26.9

 
(1.6)
Provision for taxes on income
      2,622
 
         4.3
 
      3,100

 
         5.5

 
(15.4)
Net earnings
 $ 12,255
 
       20.0
 
 $ 12,013

 
       21.4

 
2.0
 
 
 
 
 
 
 
 
 
 
Net earnings per share (Diluted)
 $ 4.49
 
 
 
 $ 4.37

 
 
 
2.7
 
 
 
 
 
 
 
 
 
 
Average shares outstanding (Diluted)
2,729.6
 
 
 
2,746.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate
17.6
%
 
 
20.5

%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings before provision for taxes and net earnings (1) (A)
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income
 $ 20,652
 
33.8
 
 $ 18,961

 
       33.7

 
8.9
Net earnings
 $ 16,943
 
27.7
 
 $ 15,263

 
       27.1

 
11.0
Net earnings per share (Diluted)
 $ 6.21
 
 
 
 $ 5.56

 
 
 
11.7
Effective tax rate
18.0
%
 
 
19.5

%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) See Reconciliation of Non-GAAP Financial Measures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07
 
 
 
 
 
 
 
 
 
 
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.






Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
THIRD QUARTER
 
 
 
 
 
Percent Change
 
2018
 
2017
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
segment of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
    U.S.
 $ 1,370
 
    1,285
 
   6.6
%
            6.6
 

    International
      2,045
 
    2,071
 
  (1.3)
 
3.7
 
        (5.0)

 
      3,415
   
    3,356
 
   1.8
 
            4.9
 
        (3.1)

 
 
 
 
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
    U.S.
      6,097
 
    5,816
 
   4.8
 
            4.8
 

    International
      4,249
 
    3,879
 
   9.5
 
          13.2
 
        (3.7)

 
    10,346
   
    9,695
 
   6.7
 
            8.2
 
        (1.5)

 
 
 
 
 
 
 
 
 
 
Medical Devices
 
 
 
 
 
 
 
 
 
    U.S.
      3,197
   
    3,189
 
   0.3
 
            0.3
 

    International
      3,390
 
    3,410
 
  (0.6)
 
            3.0
 
        (3.6)

 
      6,587
   
    6,599
 
(0.2)
 
            1.7
 
        (1.9)

 
 
 
 
 
 
 
 
 
 
U.S.
    10,664
 
  10,290
 
   3.6
 
            3.6
 

International
      9,684
 
    9,360
 
   3.5
 
            7.5
 
        (4.0)

Worldwide
 $ 20,348
 
  19,650
 
   3.6
%
            5.5
 
        (1.9)










Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
NINE MONTHS
 
 
 
 
 
Percent Change
 
2018
 
2017
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
segment of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
    U.S.
 $ 4,282
 
    4,186
 
    2.3
%
            2.3
 

    International
      6,035
 
    5,876
 
    2.7
 
            1.6
 
         1.1

 
    10,317
   
  10,062
 
    2.5
 
            1.9
 
         0.6

 
 
 
 
 
 
 
 
 
 
Pharmaceutical
 
 
 
 
 
 
 
 
 
    U.S.
    17,350
 
  15,698
 
  10.5
 
          10.5
 

    International
    13,194
 
  10,877
 
  21.3
 
          17.5
 
         3.8

 
    30,544
   
  26,575
 
  14.9
 
          13.4
 
         1.5

 
 
 
 
 
 
 
 
 
 
Medical Devices
 
 
 
 
 
 
 
 
 
    U.S.
      9,623
   
    9,510
 
    1.2
 
            1.2
 

    International
    10,703
 
  10,108
 
    5.9
 
            3.2
 
         2.7

 
    20,326
   
  19,618
 
    3.6
 
            2.2
 
         1.4

 
 
 
 
 
 
 
 
 
 
U.S.
    31,255
 
  29,394
 
    6.3
 
            6.3
 

International
    29,932
 
  26,861
 
  11.4
 
            8.6
 
         2.8

Worldwide
 $ 61,187
 
  56,255
 
    8.8
%
            7.5
 
         1.3



























Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
THIRD QUARTER
 
 
 
 
 
Percent Change
 
2018
 
2017
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
geographic area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 $ 10,664
 
  10,290
 
   3.6
%
            3.6
 

 
 
 
 
 
 
 
 
 
 
Europe
      4,416
 
    4,308
 
2.5
 
            5.1
 
        (2.6)

Western Hemisphere excluding U.S.
      1,550
 
    1,569
 
  (1.2)
 
          11.2
 
      (12.4)

Asia-Pacific, Africa
      3,718
 
    3,483
 
   6.7
 
            8.6
 
        (1.9)

International
      9,684
 
    9,360
 
   3.5
 
            7.5
 
        (4.0)

 
  
 
  
 
  
 
  
 
  
Worldwide
 $ 20,348
 
  19,650
 
   3.6
%
            5.5
 
        (1.9)











Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
 
Supplementary Sales Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited; Dollars in Millions)
NINE MONTHS
 
 
 
 
 
Percent Change
 
2018
 
2017
 
Total
 
Operations
 
Currency
Sales to customers by
 
 
 
 
 
 
 
 
 
geographic area
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 $ 31,255
 
  29,394
 
    6.3
%
            6.3
 

 
 
 
 
 
 
 
 
 
 
Europe
    14,023
 
  12,398
 
  13.1
 
            7.1
 
         6.0

Western Hemisphere excluding U.S.
      4,657
 
    4,522
 
    3.0
 
            8.4
 
        (5.4)

Asia-Pacific, Africa
    11,252
 
    9,941
 
  13.2
 
          10.8
 
         2.4

International
    29,932
 
  26,861
 
  11.4
 
            8.6
 
         2.8

 
  
 
  
 
  
 
  
 
  
Worldwide
 $ 61,187
 
  56,255
 
    8.8
%
            7.5
 
         1.3
















Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter
 
% Incr. /
 
(Dollars in Millions Except Per Share Data)
 
2018
 
2017
 
(Decr.)
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as reported
 
 $ 4,423

 
         4,790

 
            (7.7)
%
Intangible asset amortization expense
 
         1,085

 
         1,077

 
 
 
In-process research and development
 
         1,126

 

 
 
 
Litigation expense, net
 

 
            118

 
 
 
Restructuring/Other (1)
 
            190

 
            187

 
 
 
Actelion acquisition related cost
 
              40

 
            367

 
 
 
Contingent liability reversal
 
           (184)

 

 
 
 
AMO acquisition related cost
 
              36

 
              36

 
 
 
Diabetes asset impairment
 

 
               (2)

 
 
 
Unrealized loss/(gain) on securities
 
                9

 

 
 
 
Other
 
              55

 

 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as adjusted
 
 $ 6,780

 
         6,573

 
             3.1
 %
 
 
 
 
 
 
 
 
Net Earnings - as reported
 
 $ 3,934

 
         3,764

 
             4.5
%
Intangible asset amortization expense
 
            968

 
            933

 
 
 
In-process research and development
 
            859

 

 
 
 
Litigation expense, net
 

   
              97

   
 
 
Restructuring/Other
 
            162

 
            136

 
 
 
Actelion acquisition related cost
 
              37

 
            255

 
 
 
Contingent liability reversal
 
           (184)

 

 
 
 
AMO acquisition related cost
 
              29

 
              28

 
 
 
Diabetes asset impairment
 

 
               (5)

 
 
 
Unrealized loss/(gain) on securities
 
                8

 

 
 
 
Impact of tax legislation (2)
 
           (265)

 

 
 
 
Other
 
              42

 

 
 
 
 
 
 
 
 
 
 
 
Net Earnings - as adjusted
 
 $ 5,590

 
         5,208

 
             7.3
 %
 
 
 
 
 
 
 
 
Diluted Net Earnings per share - as reported
 
 $ 1.44

 
           1.37

 
             5.1
%
Intangible asset amortization expense
 
           0.35

 
           0.34

 
 
 
In-process research and development
 
           0.32

 

 
 
 
Litigation expense, net
 

 
           0.04

 
 
 
Restructuring/Other
 
           0.06

 
           0.05

 
 
 
Actelion acquisition related cost
 
           0.02

 
           0.09

 
 
 
Contingent liability reversal
 
          (0.07)

 

 
 
 
AMO acquisition related cost
 
           0.01

 
           0.01

 
 
 
Diabetes asset impairment
 

 

 
 
 
Unrealized loss/(gain) on securities
 

 

 
 
 
Impact of tax legislation
 
          (0.10)

 

 
 
 
Other
 
           0.02

 

 
 
 
 
 
 
 
 
 
 
 
Diluted Net Earnings per share - as adjusted
 
 $ 2.05

 
           1.90

 
             7.9
 %
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted
 
 
 
 
 
 
 
at 2016 foreign currency exchange rates
 
 
 
           1.85

 
 
 
 
 
 
 
 
 
 
 
Impact of currency at 2017 foreign currency exchange rates
 
           0.03

 
           0.05

 
 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted
 
 
 
 
 
 
 
at 2017 foreign currency exchange rates
 
 $ 2.08

 
           1.90

 
             9.5
 %
 
 
 
 
 
 
 
 
(1) Includes $23M recorded in cost of products sold and $79M recorded in other (income) expense for the third quarter 2018. Includes $29M recorded in cost of products sold and $89M recorded in other (income) expense for the third quarter 2017.
 
(2) Includes foreign currency translation
 
 
 
 
 
 
 





Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months YTD
 
% Incr. /
 
(Dollars in Millions Except Per Share Data)
2018
 
2017
 
(Decr.)
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as reported
 $ 14,877

 
       15,113

 
            (1.6)
%
Intangible asset amortization expense
         3,284

 
         1,886

 
 
 
In-process research and development
         1,126

 

 
 
 
Litigation expense, net
            703

 
            611

 
 
 
Restructuring/Other (1)
            473

 
            476

 
 
 
Actelion acquisition related cost
            200

 
            580

 
 
 
Contingent liability reversal
           (184)

 

 
 
 
AMO acquisition related cost
              82

 
            115

 
 
 
Diabetes asset impairment
                4

 
            180

 
 
 
Unrealized loss/(gain) on securities
               (3)

 

 
 
 
Other
              90

 

 
 
 
 
 
 
 
 
 
 
Earnings before provision for taxes on income - as adjusted
 $ 20,652

 
       18,961

 
             8.9
 %
 
 
 
 
 
 
 
Net Earnings - as reported
 $ 12,255

 
       12,013

 
             2.0
%
Intangible asset amortization expense
         2,931

 
         1,555

 
 
 
In-process research and development
            859

 

 
 
 
Litigation expense, net
            609

 
            449

 
 
 
Restructuring/Other
            395

 
            358

 
 
 
Actelion acquisition related cost
            193

 
            454

 
 
 
Contingent liability reversal
           (184)

 

 
 
 
AMO acquisition related cost
              68

 
            314

 
 
 
Diabetes asset impairment
                3

 
            120

 
 
 
Unrealized loss/(gain) on securities
               (2)

 

 
 
 
Impact of tax legislation (2)
           (253)

 

 
 
 
Other
              69

 

 
 
 
 
 
 
 
 
 
 
Net Earnings - as adjusted
 $ 16,943

 
       15,263

 
           11.0
 %
 
 
 
 
 
 
 
Diluted Net Earnings per share - as reported
 $ 4.49

 
           4.37

 
             2.7
%
Intangible asset amortization expense
           1.07

 
           0.57

 
 
 
In-process research and development
           0.32

 

 
 
 
Litigation expense, net
           0.22

 
           0.16

 
 
 
Restructuring/Other
           0.15

 
           0.14

 
 
 
Actelion acquisition related cost
           0.07

 
           0.16

 
 
 
Contingent liability reversal
          (0.07)

 

 
 
 
AMO acquisition related cost
           0.02

 
           0.11

 
 
 
Diabetes asset impairment

 
           0.05

 
 
 
Unrealized loss/(gain) on securities

 

 
 
 
Impact of tax legislation
          (0.09)

 

 
 
 
Other
           0.03

 

 
 
 
 
 
 
 
 
 
 
Diluted Net Earnings per share - as adjusted
 $ 6.21

 
           5.56

 
           11.7
 %
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted
 
 
 
 
 
 
at 2016 foreign currency exchange rates
 
 
           5.57

 
 
 
 
 
 
 
 
 
 
Impact of currency at 2017 foreign currency exchange rates
          (0.17)

 
          (0.01)

 
 
 
 
 
 
 
 
 
 
Operational Diluted Net Earnings per share - as adjusted
 
 
 
 
 
 
at 2017 foreign currency exchange rates
 $ 6.04

 
           5.56

 
             8.6
 %
 
 
 
 
 
 
 
(1) Includes $73M recorded in cost of products sold and $213M recorded in other (income) expense for nine months 2018 YTD. Includes $46M recorded in cost of products sold and $265M recorded in other (income) expense for nine months 2017 YTD.
 
 
 
 
 
 
 
(2) Includes foreign currency translation
 
 
 
 
 
 






Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operational Sales Growth Excluding Acquisitions and Divestitures (A)
 THIRD QUARTER 2018 ACTUAL vs. 2017 ACTUAL
 
 
 
 
 
 
 
 
 
 
 Segments
 
 
 Consumer
 
 Pharmaceutical
 
 Medical Devices
 
 Total
 
 
Operational % (1)
 WW As Reported:
 
4.9%
 
8.2%
 
1.7%
 
5.5%
 U.S.
 
6.6%
 
4.8%
 
0.3%
 
3.6%
 International
 
3.7%
 
13.2%
 
3.0%
 
7.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spine & Other
 
 
 
 
 
 
 
 
Codman Neuroscience
 
 
 
 
 
1.0
 
0.4
 U.S.
 
 
 
 
 
0.6
 
0.2
 International
 
 
 
 
 
1.4
 
0.5
 
 
 
 
 
 
 
 
 
Wound Care / Other
 
 
 
 
 
 
 
 
Compeed
 
0.8
 
 
 
 
 
0.1
 U.S.
 
0.0
 
 
 
 
 
0.0
 International
 
1.3
 
 
 
 
 
0.3
 
 
 
 
 
 
 
 
 
Beauty
 
 
 
 
 
 
 
 
Nizoral
 
0.5
 
 
 
 
 
0.1
 U.S.
 
0.3
 
 
 
 
 
0.0
 International
 
0.7
 
 
 
 
 
0.1
 
 
 
 
 
 
 
 
 
All Other Acquisitions and Divestitures
 
(0.1)
 
0.0
 
0.2
 
0.0
 U.S.
 
(0.5)
 
0.0
 
0.3
 
0.1
 International
 
0.2
 
0.0
 
0.0
 
0.1
 
 
 
 
 
 
 
 
 
WW Ops excluding Acquisitions and Divestitures
 
6.1%
 
8.2%
 
2.9%
 
6.1%
 U.S.
 
6.4%
 
4.8%
 
1.2%
 
3.9%
 International
 
5.9%
 
13.2%
 
4.4%
 
8.5%
 
 
 
 
 
 
 
 
 
(1) Operational growth excludes the effect of translational currency
 
 
 
 
 
 
 
 
 
 
 
(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions and divestitures" is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.





Johnson & Johnson and Subsidiaries
 
 
 
 
 
 
 
 
Reconciliation of Non-GAAP Financial Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operational Sales Growth Excluding Acquisitions and Divestitures (A)
 NINE MONTHS 2018 ACTUAL vs. 2017 ACTUAL
 
 
 
 
 
 
 
 
 
 Segments
 
 
 Consumer
 
 Pharmaceutical
 
 Medical Devices
 
 Total
 
 
Operational % (1)
 WW As Reported:
 
1.9%
 
13.4%
 
2.2%
 
7.5%
 U.S.
 
2.3%
 
10.5%
 
1.2%
 
6.3%
 International
 
1.6%
 
17.5%
 
3.2%
 
8.6%
 
 
 
 
 
 
 
 
 
Pulmonary Hypertension
 
 
 
 
 
 
 
 
Actelion
 
 
 
(4.3)
 
 
 
(2.0)
 U.S.
 
 
 
(4.7)
 
 
 
(2.5)
 International
 
 
 
(3.8)
 
 
 
(1.6)
 
 
 
 
 
 
 
 
 
Cardiovascular / Metabolism / Other
 
 
 
 
 
 
 
 
Actelion
 
 
 
(0.2)
 
 
 
(0.1)
 U.S.
 
 
 
(0.1)
 
 
 
(0.1)
 International
 
 
 
(0.3)
 
 
 
(0.1)
 
 
 
 
 
 
 
 
 
Spine & Other
 
 
 
 
 
 
 
 
Codman Neuroscience
 
 
 
 
 
1.0
 
0.4
 U.S.
 
 
 
 
 
0.6
 
0.3
 International
 
 
 
 
 
1.4
 
0.6
 
 
 
 
 
 
 
 
 
Wound Care / Other
 
 
 
 
 
 
 
 
Compeed
 
0.9
 
 
 
 
 
0.2
 U.S.
 
0.0
 
 
 
 
 
0.0
 International
 
1.5
 
 
 
 
 
0.3
 
 
 
 
 
 
 
 
 
Vision
 
 
 
 
 
 
 
 
Vision Surgical & Eye Health Business
 
 
 
 
 
(1.0)
 
(0.4)
  U.S.
 
 
 
 
 
(0.9)
 
(0.3)
  International
 
 
 
 
 
(1.1)
 
(0.4)
 
 
 
 
 
 
 
 
 
Beauty
 
 
 
 
 
 
 
 
Nizoral
 
0.2
 
 
 
 
 
0.0
  U.S.
 
0.1
 
 
 
 
 
0.0
  International
 
0.3
 
 
 
 
 
0.1
 
 
 
 
 
 
 
 
 
All Other Acquisitions and Divestitures
 
0.0
 
0.0
 
0.1
 
0.0
 U.S.
 
(0.1)
 
0.0
 
0.0
 
0.0
 International
 
0.2
 
0.0
 
0.2
 
0.1
 
 
 
 
 
 
 
 
 
WW Ops excluding Acquisitions and Divestitures
 
3.0%
 
8.9%
 
2.3%
 
5.6%
 U.S.
 
2.3%
 
5.7%
 
0.9%
 
3.7%
 International
 
3.6%
 
13.4%
 
3.7%
 
7.6%
 
 
 
 
 
 
 
 
 
(1) Operational growth excludes the effect of translational currency
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) NON-GAAP FINANCIAL MEASURE “Operational sales growth excluding the net impact of acquisitions and divestitures" is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.






Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
THIRD QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2018
 
2017
 
Reported
Operational (1)
Currency

CONSUMER SEGMENT (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BABY CARE
 
 
 
 
 
 
 
 
 
US
 
$
120

 
100

 
20.0
 %
20.0
 %
 %
Intl
 
 
352

 
377

 
(6.6
)
0.1

(6.7
)
WW
 
 
472

 
477

 
(1.0
)
4.3

(5.3
)
 
 
 
 
 
 
 
 
 
 
BEAUTY
 
 
 
 
 
 
 
 
 
US
 
 
543

 
523

 
3.8

3.8


Intl
 
 
535

 
510

 
4.9

9.2

(4.3
)
WW
 
 
1,078

 
1,033

 
4.4

6.5

(2.1
)
 
 
 
 
 
 
 
 
 
 
ORAL CARE
 
 
 
 
 
 
 
 
 
US
 
 
158

 
154

 
2.6

2.6


Intl
 
 
226

 
228

 
(0.9
)
3.6

(4.5
)
WW
 
 
384

 
382

 
0.5

3.2

(2.7
)
 
 
 
 
 
 
 
 
 
 
OTC
 
 
 
 
 
 
 
 
 
US
 
 
440

 
401

 
9.7

9.7


Intl
 
 
608

 
601

 
1.2

4.8

(3.6
)
WW
 
 
1,048

 
1,002

 
4.6

6.8

(2.2
)
 
 
 
 
 
 
 
 
 
 
WOMEN'S HEALTH
 
 
 
 
 
 
 
 
 
US
 
 
3

 
3

 
0.0

0.0


Intl
 
 
266

 
267

 
(0.4
)
8.0

(8.4
)
WW
 
 
269

 
270

 
(0.4
)
7.9

(8.3
)
 
 
 
 
 
 
 
 
 
 
WOUND CARE / OTHER
 
 
 
 
 
 
 
 
 
US
 
 
106

 
104

 
1.9

1.9


Intl
 
 
58

 
88

 
(34.1
)
(31.3
)
(2.8
)
WW
 
 
164

 
192

 
(14.6
)
(13.3
)
(1.3
)
 
 
 
 
 
 
 
 
 
 
TOTAL CONSUMER
 
 
 
 
 
 
 
 
 
US
 
 
1,370

 
1,285

 
6.6

6.6


Intl
 
 
2,045

 
2,071

 
(1.3
)
3.7

(5.0
)
WW
 
$
3,415

 
3,356

 
1.8
 %
4.9
 %
(3.1
)%
 
 
 
 
 
 
 
 
 
 
See footnotes at end of schedule
 
 
 
 
 
 
 
 
 






Johnson & Johnson
Segment Sales
(Dollars in Millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
THIRD QUARTER
 
 
 
 
 
 
 
% Change
 
 
 
2018
 
2017
 
Reported
Operational (1)
Currency

PHARMACEUTICAL SEGMENT  (2) (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IMMUNOLOGY
 
 
 
 
 
 
 
 
 
US
 
$
2,400

 
2,420

 
(0.8
)%
(0.8
)%
 %
Intl
 
 
998

 
849

 
17.6

21.7

(4.1
)
WW
 
 
3,398