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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): 
July 16, 2020
Johnson & Johnson
 (Exact name of registrant as specified in its charter)
  
New Jersey1-321522-1024240
(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:
 
            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
               CFR 240.14d-2(b)) 
            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. 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, Par Value $1.00JNJNew York Stock Exchange
0.250% Notes Due January 2022JNJNew York Stock Exchange
0.650% Notes Due May 2024JNJNew York Stock Exchange
5.50% Notes Due November 2024JNJNew York Stock Exchange
1.150% Notes Due November 2028JNJNew York Stock Exchange
1.650% Notes Due May 2035JNJNew York Stock Exchange
 
 




 
Item 2.02                      Results of Operations and Financial Condition
 
On July 16, 2020, Johnson & Johnson issued the attached press release announcing its sales and earnings for the second quarter ended June 28, 2020.
 
Item 9.01            Financial Statements and Exhibits

(d)     Exhibits. 
 
Exhibit No.
 
Description of Exhibit
 
Press Release dated July 16, 2020 for the period ended June 28, 2020
Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the second quarter
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.




 
 
 


 

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: July 16, 2020By:/s/ Robert J. Decker, Jr. 
  Robert J. Decker, Jr.
Controller
(Principal Accounting Officer)
 

Document

Exhibit 99.1

JOHNSON & JOHNSON REPORTS 2020 SECOND-QUARTER RESULTS:
Sales of $18.3 billion reflecting a decline of 10.8%, operational decline of 9.0%* and adjusted operational decline of 8.8%*, primarily driven by the negative impact of the COVID-19 pandemic

EPS of $1.36 decreased 34.6%; adjusted EPS of $1.67 decreased 35.3%*; 2019 included gain from sale of Advanced Sterilization Products (ASP) business

Company increasing Full Year Sales and EPS guidance

New Brunswick, N.J. (July 16, 2020) – Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2020. “Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment,” said Alex Gorsky, Chairman and Chief Executive Officer. “Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.“ Mr. Gorsky continued, “We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good.”
OVERALL FINANCIAL RESULTS:
https://cdn.kscope.io/71950a77b8ca691e7d32e6b40afe2618-a2020q2chart111.jpg
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:


https://cdn.kscope.io/71950a77b8ca691e7d32e6b40afe2618-a2020q2chart211.jpg


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:

https://cdn.kscope.io/71950a77b8ca691e7d32e6b40afe2618-a2020q2chart411.jpg


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 COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.4%* as results were negatively impacted by the COVID-19 pandemic most notably reflected in skin health and beauty care products, followed by women’s health care products and international baby care products. Partially offsetting this impact was growth in over-the-counter products including TYLENOL analgesics; digestive health products and ZARBEE’S NATURALS; and LISTERINE mouthwash in oral care products. Both over-the-counter and oral care products were positively impacted by COVID-19.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* 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, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression. 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, international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 32.5%* primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, Vision and Interventional Solutions businesses.



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
TREMFYA (guselkumab) – U.S. Food and Drug Administration (FDA) Approves for Adult Patients with Active Psoriatic Arthritis (PsA)¹(press release)
ZABDENO (Ad26.ZEBOV) and MVABEA (MVA-BN-Filo) – European Commission Approves Janssen’s Preventive Ebola Vaccine¹ (press release)
DARZALEX (daratumumab) – European Commission (EC) Grants Marketing Authorisation for Subcutaneous Formulation for all Currently Approved Intravenous Formulation Indications(press release)
SIRTURO (bedaquiline) – U.S. FDA Approves New Pediatric Formulation as Part of Combination Therapy to Treat Children with Pulmonary Multidrug-Resistant Tuberculosis
(press release)
DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – U.S. FDA Approves a new Subcutaneous Formulation of Daratumumab in the Treatment of Patients with Multiple Myeloma
(press release)
IMBRUVICA (ibrutinib) – U.S.FDA Approves IMBRUVICA Plus Rituximab for Treatment of Patients with Chronic Lymphocytic Leukemia (CLL)
(press release)
Regulatory
Submissions
SIMPONI ARIA (golimumab) – Submission to the U.S. Food and Drug Administration (FDA) for the Treatment of Polyarticular Juvenile Idiopathic Arthritis and Juvenile Psoriatic Arthritis
(press release)
Other
STELARA (ustekinumab) Discontinuation of Phase 3 LOTUS Study in Systemic Lupus Erythematosus
(press release)
Johnson & Johnson Announces Acceleration of its COVID-19 Vaccine Candidate; Phase 1/2a Clinical Trial to Begin in Second Half of July
(press release)
Biosense Webster Unveils Late-Breaking Results from PRECEPT Study in Patients with Persistent Atrial Fibrillation
(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.
The estimated impact of the COVID-19 pandemic is included in the guidance below.

July 2020April 2020
($ in Billions, except EPS) 
Adjusted Operational Sales1,2
Change vs. Prior Year
(0.8%) - 1.0%(3.0%) - 0.5%
Operational Sales2
Change vs. Prior Year
$81.0 to $82.5
(1.3%) - 0.5%
$79.2 to $82.2
(3.5%) - 0.0%
Estimated Reported Sales3
Change vs. Prior Year
$79.9 to $81.4
(2.6%) - (0.8%)
$77.5 to $80.5
(5.5%) - (2.0%)
Adjusted Operational EPS (Diluted)2,4
Change vs. Prior Year
$7.85 to $8.05
(9.6%) - (7.3%)
$7.65 to $8.05
(11.9%) - (7.3%)
Adjusted EPS (Diluted)3,4
Change vs. Prior Year
$7.75 to $7.95
(10.7%) - (8.4%)
$7.50 to $7.90
(13.6%) - (9.0%)
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: July 2020 = $1.12 Euro Average Rate: April 2020 = $1.09 (Illustrative purposes only)
4 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: 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.

Press Contacts: Investor Contacts:

Cristal Downing  Christopher DelOrefice  Matthew Stuckley
(732) 524-3283  (732) 524-2955   (732) 524-2617
(908) 616-8833 (M) 

Document

Exhibit 99.2


Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)SECOND QUARTER
Percent Change
20202019TotalOperationsCurrency
Sales to customers by
geographic area
U.S.$ 9,53910,403(8.3)%(8.3)-
Europe4,0634,733(14.2)(11.5)(2.7)
Western Hemisphere excluding U.S.1,1331,455(22.1)(8.9)(13.2)
Asia-Pacific, Africa3,6013,971(9.3)(7.7)(1.6)
International8,79710,159(13.4)(9.6)(3.8)
Worldwide$ 18,33620,562(10.8)%(9.0)(1.8)
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)SIX MONTHS
Percent Change
20202019TotalOperationsCurrency
Sales to customers by
geographic area
U.S.$ 20,23820,532(1.4)%(1.4)-
Europe8,8909,342(4.8)(2.1)(2.7)
Western Hemisphere excluding U.S.2,6352,958(10.9)(0.1)(10.8)
Asia-Pacific, Africa7,2647,751(6.3)(4.9)(1.4)
International18,78920,051(6.3)(2.9)(3.4)
Worldwide$ 39,02740,583(3.8)%(2.2)(1.6)
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)SECOND QUARTER
 Percent Change
20202019TotalOperationsCurrency
Sales to customers by
segment of business
Consumer Health
    U.S.$1,557  1,537  1.3  %1.3—  
    International1,739  2,007  (13.4) (7.4) (6.0) 
3,296     3,544  (7.0) (3.6) (3.4) 
Pharmaceutical
    U.S.6,120  5,783  5.8  5.8—  
    International4,632  4,746  (2.4) 1.4(3.8) 
10,752     10,529  2.1  3.9(1.8) 
Medical Devices
    U.S.1,862     3,083  (39.6) (39.6) —  
    International2,426  3,406  (28.8) (26.4) (2.4) 
 4,288     6,489  (33.9) (32.7) (1.2) 
U.S.9,539  10,403  (8.3) (8.3) —  
International8,797  10,159  (13.4) (9.6) (3.8) 
Worldwide$18,336  20,562  (10.8) %(9.0) (1.8) 
   
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)SIX MONTHS
Percent Change
20202019TotalOperationsCurrency
Sales to customers by
segment of business
Consumer Health
U.S.$3,297  2,97510.8%10.8-
International3,6243,887(6.8)(1.9)(4.9)
6,9216,8620.93.6(2.7)
Pharmaceutical
U.S.12,18111,3657.27.2-
International9,7059,4083.26.7(3.5)
21,88620,7735.47.0(1.6)
Medical Devices
U.S.4,7606,192(23.1)(23.1)-
International5,4606,756(19.2)(16.8)(2.4)
10,22012,948(21.1)(19.8)(1.3)
U.S.20,23820,532(1.4)(1.4)-
International18,78920,051(6.3)(2.9)(3.4)
Worldwide$39,027  40,583(3.8)%(2.2)(1.6)
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)SECOND QUARTER
20202019Percent
PercentPercentIncrease
Amountto SalesAmountto Sales(Decrease)
Sales to customers$18,336  100.0$20,562  100.0(10.8) 
Cost of products sold6,579  35.96,940  33.8(5.2) 
Gross Profit11,757  64.113,622  66.2(13.7) 
Selling, marketing and administrative expenses4,993  27.25,546  27.0(10.0) 
Research and development expense2,707  14.82,666  13.01.5  
In-process research and development 0.0  —  —  
Interest (income) expense, net26  0.2  (5) 0.0   
Other (income) expense, net24  0.1  (1,683) (8.2)  
Restructuring61  0.357  0.2 
Earnings before provision for taxes on income3,940  21.57,041  34.2(44.0) 
Provision for taxes on income314  1.71,434  6.9(78.1) 
Net earnings$3,626  19.8$5,607  27.3(35.3) 
Net earnings per share (Diluted)$1.36  $2.08  (34.6) 
Average shares outstanding (Diluted)2,665.5  2,691.7  
Effective tax rate8.0  %20.4  %
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income$5,337  29.1$8,614  41.9(38.0) 
Net earnings$4,446  24.2$6,950  33.8(36.0) 
Net earnings per share (Diluted)$1.67  $2.58  (35.3) 
Effective tax rate16.7  %19.3  %
(1) See Reconciliation of Non-GAAP Financial Measures.
(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)SIX MONTHS
20202019Percent
PercentPercentIncrease
Amountto SalesAmountto Sales(Decrease)
Sales to customers$39,027  100.0$40,583  100.0(3.8)
Cost of products sold13,64135.013,55533.40.6
Gross Profit25,38665.027,02866.6(6.1)
Selling, marketing and administrative expenses10,19626.110,76526.5(5.3)
Research and development expense5,28713.55,52413.6(4.3)
In-process research and development60.08902.2
Interest (income) expense, net(16)0.0(2)0.0
Other (income) expense, net(655)(1.7)(1,705)(4.2)
Restructuring1190.3930.3
Earnings before provision for taxes on income10,44926.811,46328.2(8.8)
Provision for taxes on income1,0272.72,1075.1(51.3)
Net earnings$9,422  24.1$9,356  23.10.7
Net earnings per share (Diluted)$3.53  $3.47  1.7
Average shares outstanding (Diluted)2,671.02,697.0
Effective tax rate9.8%18.4%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income$12,581  32.2$15,481  38.1(18.7)
Net earnings$10,600  27.2$12,611  31.1(15.9)
Net earnings per share (Diluted)$3.97  $4.68  (15.2)
Effective tax rate15.7%18.5%
(1) See Reconciliation of Non-GAAP Financial Measures.
(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
Reconciliation of Non-GAAP Financial Measures
Second Quarter
(Dollars in Millions Except Per Share Data)20202019
Net Earnings, after-tax as reported$3,626$5,607
Pre-tax Adjustments
Intangible Asset Amortization expense1,1271,118
Litigation expense, net613409
IPR&D6
Restructuring related115142
Acquisition and Integration related2955
Unrealized (gains)/losses on securities (533)(148)
Medical Device Regulation 1
37
Other3(3)
Tax Adjustments
Tax impact on special item adjustments 2
(253)(230)
Tax legislation and related impacts (324)
Adjusted Net Earnings, after-tax$4,446$6,950
Average shares outstanding (Diluted)2,665.52,691.7
Adjusted net earnings per share (Diluted)$1.67$2.58
Operational adjusted net earnings per share (Diluted)$1.69 
Notes:
1 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.
2 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.








Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Six Months Ended
(Dollars in Millions Except Per Share Data)20202019
Net Earnings, after-tax as reported$9,422$9,356
Pre-tax Adjustments
Intangible Asset Amortization expense2,2452,248
Litigation expense, net733832
IPR&D6890
Restructuring related233232
Acquisition and Integration related ¹(933)122
Unrealized (gains)/losses on securities(206)(306)
Medical Device Regulation 2
51-
Other3-
Tax Adjustments
Tax impact on special item adjustments 3
(520)(763)
Tax legislation and related impacts(434)-
Adjusted Net Earnings, after-tax$10,600$12,611
Average shares outstanding (Diluted)2,671.02,697.0
Adjusted net earnings per share (Diluted)$3.97$4.68
Operational adjusted net earnings per share (Diluted)$4.01
Notes:
1 Acquisition and integration related costs for the six months of 2020 primarily includes a $983M Contingent Consideration reversal 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.





Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth (A)
 SECOND QUARTER 2020 ACTUAL vs. 2019 ACTUAL
 Segments
Consumer Health Pharmaceutical  Medical Devices  Total
 WW As Reported (7.0)%2.1 %(33.9)%(10.8)%
 U.S. 1.3 %5.8 %(39.6)%(8.3)%
 International (13.4)%(2.4)%(28.8)%(13.4)%
 WW Currency (3.4)(1.8)(1.2)(1.8)
 U.S.
 International (6.0)(3.8)(2.4)(3.8)
 WW Operational (3.6)%3.9 %(32.7)%(9.0)%
 U.S. 1.3 %5.8 %(39.6)%(8.3)%
 International (7.4)%1.4 %(26.4)%(9.6)%
General Surgery
Advanced Sterilization Products0.10.1
 U.S. 0.00.0
 International 0.30.2
Baby Care
Baby Center0.30.0
 U.S. 0.70.1
 International 0.00.0
All Other Acquisitions and Divestitures0.00.00.10.1
 U.S. 0.00.00.10.0
 International (0.1)0.10.00.0
WW Adjusted Operational(3.4)%3.9 %(32.5)%(8.8)%
 U.S. 2.0 %5.8 %(39.5)%(8.1)%
 International (7.5)%1.5 %(26.1)%(9.4)%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and 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
Adjusted Operational Sales Growth (A)
SIX MONTHS 2020 ACTUAL vs. 2019 ACTUAL
Segments
Consumer HealthPharmaceuticalMedical DevicesTotal
WW As Reported0.9 %5.4 %(21.1)%(3.8)%
U.S.10.8 %7.2 %(23.1)%(1.4)%
International(6.8)%3.2 %(19.2)%(6.3)%
WW Currency(2.7)(1.6)(1.3)(1.6)
U.S.
International(4.9)(3.5)(2.4)(3.4)
WW Operational3.6 %7.0 %(19.8)%(2.2)%
U.S.10.8 %7.2 %(23.1)%(1.4)%
International(1.9)%6.7 %(16.8)%(2.9)%
Skin Health / Beauty
Dr. Ci Labo - Japan(0.2)0.0
U.S.0.00.0
International(0.4)(0.1)
General Surgery
Advanced Sterilization Products1.00.4
U.S.1.10.4
International0.90.4
Baby Care
Baby Center0.30.0
U.S.0.70.1
International0.00.0
All Other Acquisitions and Divestitures(0.1)0.10.00.0
U.S.0.00.10.00.1
International(0.2)0.00.00.0
WW Adjusted Operational3.6 %7.0 %(18.8)%(1.7)%
U.S.11.5 %7.2 %(22.0)%(0.8)%
International(2.5)%6.7 %(15.9)%(2.6)%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and 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)
SECOND QUARTER
% Change
20202019Reported
Operational (1)
Currency
CONSUMER HEALTH SEGMENT (2) (3)
BABY CARE
US$9699(3.5)%(3.5)%— %
Intl260344(24.3) (16.6) (7.7) 
WW356443(19.7) (13.6) (6.1) 
ORAL CARE
US1701559.7  9.7  —  
Intl227234(2.8) 4.0  (6.8) 
WW397  3892.2  6.3  (4.1) 
OTC
US62748429.6  29.6  —  
Intl522580(10.1) (5.0)<