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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): 
October 19, 2021
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 2022JNJ22New York Stock Exchange
0.650% Notes Due May 2024JNJ24CNew York Stock Exchange
5.50% Notes Due November 2024JNJ24BPNew York Stock Exchange
1.150% Notes Due November 2028JNJ28New York Stock Exchange
1.650% Notes Due May 2035JNJ35New York Stock Exchange
 
 




 
Item 2.02     Results of Operations and Financial Condition
 
On October 19, 2021, Johnson & Johnson issued the attached press release announcing its sales and earnings for the third quarter ended October 3, 2021.

Item 7.01     Regulation FD Disclosure

Subsequent to the quarter, the Company’s wholly owned subsidiary LTL Management LLC (LTL), a newly created and separate subsidiary of Johnson & Johnson, that was established to hold and manage claims in the cosmetic talc litigation, has filed for voluntary Chapter 11 bankruptcy protection. This filing is intended to resolve all claims related to cosmetic talc in a manner that is equitable to all parties, including any current and future claimants. Johnson & Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual. To demonstrate its commitment to resolving the cosmetic talc cases and remove any financial objections to the process, Johnson & Johnson has agreed to provide funding to LTL for the payment of amounts the Bankruptcy Court determines are owed by LTL and will also establish a $2 billion trust in furtherance of this purpose. The $2 billion trust resulted in an incremental $1.4 billion litigation charge (recorded in Other income & expense) in the third fiscal quarter. While LTL pursues this equitable resolution, all pending cosmetic talc cases will be stayed. The press release further discussing this announcement is attached below as Exhibit 99.3.
 
Item 9.01    Financial Statements and Exhibits

(d)     Exhibits. 
 
Exhibit No.
 
Description of Exhibit
 
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: October 19, 2021By:/s/ Robert J. Decker, Jr. 
  Robert J. Decker, Jr.
Controller
(Principal Accounting Officer)
 

Document

Exhibit 99.1

JOHNSON & JOHNSON REPORTS 2021 THIRD-QUARTER RESULTS:
Total sales growth of 10.7% to $23.3 Billion with operational growth of 9.9%* and adjusted operational growth of 10.6%*

Earnings per share of $1.37 increasing 3.0% and adjusted earnings per share of $2.60 increasing 18.2%*

Company increasing 2021 Full-Year Guidance


New Brunswick, N.J. (October 19, 2021) – Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2021. “Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health,” said Alex Gorsky, Chairman and Chief Executive Officer. “In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders, while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth. I am incredibly proud of our Company’s transformative growth over the last decade. As I prepare to transition the role of CEO to Joaquin Duato in January, I want to extend my deepest gratitude to our colleagues around the globe who work tirelessly to deliver solutions to address the world’s most urgent and unmet healthcare challenges.”

OVERALL FINANCIAL RESULTS:
https://cdn.kscope.io/a2173306e69653fb725208a477dfc398-a3q21overallfinancialresul.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/a2173306e69653fb725208a477dfc398-a3q21regionalfinancialresu.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/a2173306e69653fb725208a477dfc398-a3q21salesbysegment.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




Third Quarter 2021 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased 5.7%* primarily driven by over-the-counter (OTC) products. Major contributors to growth were TYLENOL and MOTRIN analgesics, upper respiratory products, and digestive health in OTC, and AVEENO in Skin Health / Beauty.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 13.8%* driven by DARZALEX (daratumumab), for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, 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. Also contributing to growth was sales of the not-for-profit COVID-19 Vaccine (Ad26.COV2.S) for the treatment of the SARS-CoV-2 virus. This growth was partially offset by declines in U.S. sales of REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and INVOKANA (canagliflozin) for the treatment of adults with type 2 diabetes.


Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 7.6%*, driven by electrophysiology products in Interventional Solutions, wound closure products in General Surgery, surgical vision products and contact lenses in Vision, trauma, hips, and knees in Orthopaedics, and energy, endocutters, and biosurgicals in Advanced Surgery. Growth was partially offset by Spine, Sports & Other.



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
Decisions
INVEGA HAFYERA (paliperidone palmitate) Receives FDA Approval For First and Only Twice-Yearly Treatment for Adults with Schizophrenia
(press release)
XARELTO (rivaroxaban) Plus Aspirin Receives FDA Approval For Expanded Peripheral Artery Disease (PAD) Indication to Include Patients After Lower-Extremity Revascularization (LER)

(press release)
UPTRAVI (selexipag) Receives FDA Approval For Intravenous Use in Adult Patients with Pulmonary Arterial Hypertension (PAH)
(press release)
Regulatory
Submissions
Johnson & Johnson Announces Submission of Emergency Use Authorization Amendment to the U.S. FDA to Support Booster of its Single-Shot COVID-19 Vaccine 1
(press release)
Janssen Submits Application Seeking U.S. FDA Approval of STELARA (ustekinumab) for the Treatment of Pediatric Patients With Juvenile Psoriatic Arthritis 1
(press release)
Other
Alex Gorsky to Transition Role of Chief Executive Officer of Johnson & Johnson to Joaquin Duato, Effective January 3, 2022
(press release)
Dr. Paul Stoffels, Vice Chairman of the Executive Committee and Chief Scientific Officer of Johnson & Johnson to Retire, Effective December 31, 2021 1
(press release)
Johnson & Johnson Announces Real-World Evidence and Phase 3 Data Confirming Strong and Long-Lasting Protection of Single-Shot COVID-19 Vaccine in the U.S.
(press release)
Johnson & Johnson Issues Statement on Nationwide Opioid Settlement Agreement
(press release)
DePuy Synthes Announces Introduction of the INHANCE Shoulder System, a First-to-Market, Fully Integrated Shoulder Arthroplasty System
(press release)
Janssen Announces Start of Phase 3 Trial for Investigational Respiratory Syncytial Virus (RSV) Vaccine in Older Adults
(press release)
Janssen Receives Positive CHMP Opinion for BYANNLI (six-monthly paliperidone palmitate) for the Maintenance Treatment of Schizophrenia in Adults
(press release)
Ethicon Announces ECHELON CIRCULAR Powered Stapler Associated with Major Reduction in Serious Complications Following Colorectal Surgery
(press release)
Johnson & Johnson Takes Steps to Equitably Resolve All Current and Future Talc Claims 1
(press release)
Janssen Receives Positive CHMP Opinion for RYBREVANT (amivantamab) for the Treatment of Patients with Advanced Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations After Failure of Platinum-Based Therapy 1
(press release)
Johnson & Johnson COVID-19 Vaccine Booster Shot Unanimously Recommended for Emergency Use Authorization by U.S. FDA Advisory Committee 1
(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.     
($ in Billions, except EPS)October 2021
 (Base Business)
October 2021
(incl. COVID Vx)
July 2021
 (Base Business)
July 2021
(incl. COVID Vx)
Adjusted Operational Sales1,2
Change vs. Prior Year
9.9% - 10.5%12.9% - 13.5%9.5% - 10.5%12.5% - 13.5%
Operational Sales2
Change vs. Prior Year
$90.3B – 90.8B
9.4% – 10.0%
$92.8 - $93.3B
12.4% – 13.0%
$90.0B - $90.8B
 9.0% – 10.0%
$92.5B - $93.3B
12.0% – 13.0%
Estimated Reported Sales3
Change vs. Prior Year
$91.6B - $92.1B
10.9% – 11.5%
$94.1B - $94.6B
13.9% – 14.5%
$91.3B - $92.1B
 10.5% – 11.5%
$93.8B - $94.6B
13.5% – 14.5%
Adjusted Operational EPS (Diluted)2,4
Change vs. Prior Year
$9.65 - $9.70
20.2% - 20.8%
$9.50 - $9.60
 18.4% - 19.6%
Adjusted EPS (Diluted)3,4
Change vs. Prior Year
$9.77 - $9.82
21.7% - 22.3%
$9.60 - $9.70
 19.6% - 20.8%
1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
2 Non-GAAP financial measure; excludes the impact of translational currency
3 Calculated using Euro Average Rate: July 2021 = $1.19 and October = $1.19 (Illustrative purposes only)
4 Non-GAAP financial measure; excludes intangible amortization expense and special items
Note: % may have been rounded

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 January 3, 2021 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:
Courtney DuganJennifer McIntyreSarah Wood
Lisa Romanko
(347) 452-1061(732) 524-3922(732) 524-2617
(732) 524-2034

Document

Exhibit 99.2


Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
THIRD QUARTER
Percent Change
20212020TotalOperationsCurrency
Sales to customers by
geographic area
U.S.$11,963  11,086  7.9 % 7.9 — 
Europe 5,587  4,819 15.9  14.6  1.3
Western Hemisphere excluding U.S. 1,500  1,296  15.7  13.4  2.3
Asia-Pacific, Africa 4,288  3,881  10.5  8.5  2.0
International 11,375  9,996  13.8  12.1  1.7
      
Worldwide$23,338  21,082  10.7 % 9.9  0.8
        
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)
NINE MONTHS
Percent Change
20212020TotalOperationsCurrency
Sales to customers by
geographic area
U.S.$34,993  31,324  11.7 % 11.7 — 
Europe 16,669  13,709  21.6  15.3  6.3
Western Hemisphere excluding U.S. 4,291  3,931  9.2  8.1  1.1
Asia-Pacific, Africa 13,018  11,145  16.8  12.3  4.5
International 33,978  28,785  18.0  13.1  4.9
      
Worldwide$68,971  60,109  14.7 % 12.4  2.3
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)
THIRD QUARTER
 Percent Change
20212020TotalOperationsCurrency
Sales to customers by
segment of business
Consumer Health
    U.S.$1,625 1,556 4.5 %4.5 — 
    International2,075 1,958 5.9 3.7 2.2 
3,700    3,514 5.3 4.1 1.2 
Pharmaceutical
    U.S.7,221 6,438 12.2 12.2— 
    International5,773 4,980 15.9 14.61.3 
12,994    11,418 13.8 13.20.6 
Medical Devices
    U.S.3,117    3,092 0.8 0.8 — 
    International3,527 3,058 15.4 13.3 2.1 
 6,644    6,150 8.0 7.0 1.0 
U.S.11,963 11,086 7.9 7.9 — 
International11,375 9,996 13.8 12.1 1.7 
Worldwide$23,338 21,082 10.7 %9.9 0.8 
   
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)
NINE MONTHS
 Percent Change
20212020TotalOperationsCurrency
Sales to customers by
segment of business
Consumer Health
    U.S.$4,987 4,853 2.8 %2.8 — 
    International5,991 5,582 7.3 3.5 3.8 
10,978    10,435 5.2 3.1 2.1 
Pharmaceutical
    U.S.20,536 18,619 10.3 10.3— 
    International17,256 14,685 17.5 12.55.0 
37,792    33,304 13.5 11.32.2 
Medical Devices
    U.S.9,470    7,852 20.6 20.6 — 
    International10,731 8,518 26.0 20.5 5.5 
 20,201    16,370 23.4 20.5 2.9 
U.S.34,993 31,324 11.7 11.7 — 
International33,978 28,785 18.0 13.1 4.9 
Worldwide$68,971 60,109 14.7 %12.4 2.3 
   
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)
THIRD QUARTER
20212020Percent
PercentPercentIncrease
Amountto SalesAmountto Sales(Decrease)
Sales to customers$23,338 100.0$21,082 100.010.7 
Cost of products sold7,250 31.16,972 33.14.0
Gross Profit16,088 68.914,110 66.914.0 
Selling, marketing and administrative expenses6,000 25.75,431 25.810.5 
Research and development expense3,422 14.72,840 13.520.5 
In-process research and development9003.9138 0.6 
Interest (income) expense, net7 0.0 32 0.1 
Other (income) expense, net1,850 7.9 1,200 5.7  
Restructuring60 0.268 0.3 
Earnings before provision for taxes on income3,849 16.54,401 20.9(12.5)
Provision for taxes on income182 0.8847 4 (78.5)
Net earnings$3,667 15.7$3,554 16.93.2 
Net earnings per share (Diluted)$1.37 $1.33 3.0 
Average shares outstanding (Diluted)2,674.9 2,669.3 
Effective tax rate4.7 %19.2 %
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income$8,058 34.5$7,246 34.411.2 
Net earnings$6,968 29.9$5,868 27.818.7 
Net earnings per share (Diluted)$2.60 $2.20 18.2 
Effective tax rate13.5 %19.0 %
(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 gains from divestitures, 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, significant gains from divestitures, 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
20212020Percent
PercentPercentIncrease
Amountto SalesAmountto Sales(Decrease)
Sales to customers$68,971 100.0$60,109 100.014.7 
Cost of products sold21,900 31.820,613 34.36.2
Gross Profit47,071 68.239,496 65.719.2 
Selling, marketing and administrative expenses17,505 25.415,627 26.012.0 
Research and development expense9,994 14.58,127 13.523.0 
In-process research and development9001.3144 0.3  
Interest (income) expense, net83 0.116 0.0  
Other (income) expense, net480 0.7 545 0.9  
Restructuring169 0.2187 0.3 
Earnings before provision for taxes on income17,940 26.014,850 24.720.8 
Provision for taxes on income1,798 2.61,874 3.1 (4.1)
Net earnings$16,142 23.4$12,976 21.624.4 
Net earnings per share (Diluted)$6.04 $4.86 24.3 
Average shares outstanding (Diluted)2,674.6 2,670.8 
Effective tax rate10.0 %12.6 %
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income$24,125 35.0$19,827 33.021.7 
Net earnings$20,517 29.7$16,468 27.424.6 
Net earnings per share (Diluted)$7.67 $6.17 24.3 
Effective tax rate15.0 %16.9 %
(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 gains from divestitures, 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, significant gains from divestitures, 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
Third Quarter
(Dollars in Millions Except Per Share Data)20212020
Net Earnings, after tax- as reported$3,667$3,554
Pre-tax Adjustments
Intangible Asset Amortization expense1,159 1,181
Litigation expense, net2,077 1,477
IPR&D 900  138
Restructuring related121 130
Acquisition, integration and divestiture related 20 (154)
(Gains)/losses on securities (127)32
Medical Device Regulation 59  38
Other - 3
Tax Adjustments
Tax impact on special item adjustments 1
(849)(482)
Tax legislation and related impacts (59) (49)
Adjusted Net Earnings, after tax$6,968$5,868
Average shares outstanding (Diluted)2,674.9 2,669.3
Adjusted net earnings per share (Diluted)$2.60$2.20
Operational adjusted net earnings per share (Diluted)$2.56 
Notes:
1
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
Nine Months Ended
(Dollars in Millions Except Per Share Data)20212020
Net Earnings, after tax- as reported$16,142$12,976
Pre-tax Adjustments
Intangible Asset Amortization expense3,576 3,426
Litigation expense, net2,054 2,210
IPR&D 900 144
Restructuring related333 363
Acquisition, integration and divestiture related 1
(504)(1,087)
(Gains)/losses on securities(335)(174)
Medical Device Regulation161  89
Other -  6
Tax Adjustments
Tax impact on special item adjustments 2
(1,097)(1,002)
Tax legislation and related impacts(713) (483)
Adjusted Net Earnings, after tax$20,517$16,468
Average shares outstanding (Diluted)2,674.6 2,670.8
Adjusted net earnings per share (Diluted)$7.67$6.17
Operational adjusted net earnings per share (Diluted)$7.47 
Notes:
1
Acquisition, integration and divestiture related for the nine months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S. Acquisition, integration and divestiture related for 2020 primarily includes a Contingent Consideration reversal ($165M in third quarter and $1,148M in nine months) related to the timing of certain developmental milestones associated with the Auris Health acquisition.
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 Measure
Adjusted Operational Sales Growth (A)
 THIRD QUARTER 2021 ACTUAL vs. 2020 ACTUAL
 Segments
Consumer Health Pharmaceutical  Medical Devices  Total
 WW As Reported 5.3 %13.8 %8.0 %10.7 %
 U.S. 4.5 %12.2 %0.8 %7.9 %
 International 5.9 %15.9 %15.4 %13.8 %
 WW Currency 1.20.61.00.8
 U.S.
 International 2.21.32.11.7
 WW Operational 4.1 %13.2 %7.0 %9.9 %
 U.S. 4.5 %12.2 %0.8 %7.9 %
 International 3.7 %14.6 %13.3 %12.1 %
General Surgery
Advanced Sterilization Products0.40.1
 U.S. 0.00.0
 International 0.80.2
Skin Health / Beauty
Dr. Ci Labo - Sedona1.10.2
 U.S. 0.00.0
 International 2.00.4
All Other Acquisitions and Divestitures0.50.60.20.4
 U.S. 0.60.00.30.1
 International 0.31.40.00.8
WW Adjusted Operational5.7 %13.8 %7.6 %10.6 %
 U.S. 5.1 %12.2 %1.1 %8.0 %
 International 6.1 %16.0 %14.1 %13.5 %
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)
NINE MONTHS 2021 ACTUAL vs. 2020 ACTUAL
 Segments
Consumer Health Pharmaceutical  Medical Devices  Total
 WW As Reported 5.2 %13.5 %23.4 %14.7 %
 U.S. 2.8 %10.3 %20.6 %11.7 %
 International 7.3 %17.5 %26.0 %18.0 %
 WW Currency 2.12.22.92.3
 U.S.
 International 3.85.05.54.9
 WW Operational 3.1 %11.3 %20.5 %12.4 %
 U.S. 2.8 %10.3 %20.6 %11.7 %
 International 3.5 %12.5 %20.5 %13.1 %
General Surgery
Advanced Sterilization Products0.60.2
 U.S. 0.00.0
 International 1.20.3
Skin Health / Beauty
Dr. Ci Labo - Sedona0.50.1
U.S.0.00.0
International0.90.2
All Other Acquisitions and Divestitures0.50.50.20.4
 U.S. 0.5(0.1)0.40.1
 International 0.31.30.00.7
WW Adjusted Operational4.1 %11.8 %21.4 %13.1 %
 U.S. 3.3 %10.2 %21.0 %11.8 %
 International 4.7 %13.8 %21.7 %14.4 %
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
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US$68660114.0 %14.0 %— %
Intl68654126.9 22.8 4.1 
WW1,3721,14220.1 18.2 1.9 
SKIN HEALTH / BEAUTY
US569572(0.5)(0.5)— 
Intl555577(3.8)(5.5)1.7 
WW1,124 1,149(2.2)(3.0)0.8 
ORAL CARE
US150164(8.4)(8.4)— 
Intl2482480.1 (1.8)1.9 
WW398 412 (3.3)(4.5)1.2 
BABY CARE
US95915.2 5.2 — 
Intl296302(2.0)(3.1)1.1 
WW391 393 (0.3)(1.2)0.9 
WOMEN'S HEALTH
US3320.1 20.1 — 
Intl2292270.5 0.6 (0.1)
WW2322300.8 0.8 0.0 
WOUND CARE / OTHER
US122125(2.6)(2.6)— 
Intl6164(5.2)(9.0)3.8 
WW182189(3.5)(4.8)1.3 
TOTAL CONSUMER HEALTH
US1,625 1,556 4.5 4.5  
Intl2,075 1,958 5.9 3.7 2.2 
WW$3,700 3,514 5.3 %4.1 %1.2 %
See footnotes at end of schedule






Johnson & Johnson
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US$2,7712,5588.3 %8.3 %— %
Intl1,4801,23020.3 18.8 1.5 
WW4,2503,78912.2 11.7 0.5 
     REMICADE
     US480634(24.3)(24.3)— 
     US Exports (4)
4778(40.2)(40.2)— 
     Intl23420912.2 8.1 4.1 
     WW761921(17.4)(18.3)0.9 
     SIMPONI / SIMPONI ARIA
     US295312(5.3)(5.3)— 
     Intl276280(1.1)(0.7)(0.4)
     WW571592(3.3)(3.1)(0.2)
     STELARA
     US1,5691,31319.5 19.5 — 
     Intl80963427.7 26.3 1.4 
     WW2,3781,94722.2 21.7 0.5 
     TREMFYA
     US376 222 69.7 69.7 — 
     Intl161 105 52.5 50.5 2.0 
     WW537 327 64.1 63.5 0.6 
     OTHER IMMUNOLOGY
     US3  **— 
     Intl0 3 ***
     WW3 3 (26.4)(27.5)1.1
INFECTIOUS DISEASES
US67941364.3 64.3 — 
Intl70945157.2 55.6 1.6 
WW1,38986460.6 59.8 0.8 
     COVID-19 VACCINE
     US270**— 
     Intl233**— 
     WW502**— 
     EDURANT / rilpivirine
     US12 11 8.4 8.4 — 
     Intl247 226 9.7 8.7 1.0 
     WW259 236 9.6 8.6 1.0 
     PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
     US3803790.4 0.4 — 
     Intl137147(7.1)(8.8)1.7 
     WW517526(1.7)(2.2)0.5 
     OTHER INFECTIOUS DISEASES
     US1824(26.0)(26.0)— 
     Intl937818.3 15.2 3.1 
     WW1101027.8 5.4 2.4 
See footnotes at end of schedule





Johnson & Johnson
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
NEUROSCIENCE
US$83575910.2 %10.2%—%
Intl8548460.8(0.5)1.3
WW1,6891,6055.34.60.7
     CONCERTA / methylphenidate
     US3543(19.5)(19.5)
     Intl12210714.212.51.7
     WW1571494.53.31.2
     INVEGA SUSTENNA / XEPLION / INVEGA
     TRINZA / TREVICTA
     US64858511.011.0
     Intl355341 4.33.21.1
     WW1,0049268.58.10.4
     RISPERDAL CONSTA
     US71701.31.3
     Intl6981(16.7)(16.0)(0.7)
     WW140152(8.4)(8.0)(0.4)
     OTHER NEUROSCIENCE
     US816034.734.7
     Intl307317(2.9)(4.8)1.9
     WW3883773.11.51.6
ONCOLOGY
US1,5251,26720.320.3
Intl2,140 1,862 14.913.81.1
WW3,6653,12917.116.50.6
     DARZALEX
     US841 585 43.743.7
     Intl739 514 43.742.01.7
     WW1,580 1,099 43.742.90.8
     ERLEADA
     US214 152 40.540.5
     Intl130 55 ***
     WW344 206 66.765.80.9
     IMBRUVICA
     US413 450 (8.3)(8.3)
     Intl654 581 12.610.91.7
     WW1,066 1,031 3.52.51.0
     ZYTIGA / abiraterone acetate
     US2558 (57.0)(57.0)
     Intl523532(1.8)(2.1)0.3
     WW548590(7.2)(7.5)0.3
     OTHER ONCOLOGY
     US32 21 49.649.6
     Intl94181(48.0)(47.2)(0.8)
     WW126203(37.6)(36.9)(0.7)
See footnotes at end of schedule



Johnson & Johnson
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
PULMONARY HYPERTENSION
US$610 510 19.7 %19.7 %— %
Intl258 239 7.9 8.4 (0.5)
WW868 749 15.9 16.1 (0.2)
     OPSUMIT
     US299 244 22.8 22.8 — 
     Intl159 148 7.4 7.8 (0.4)
     WW458 392 17.0 17.1 (0.1)
     UPTRAVI
     US265 226 17.3 17.3 — 
     Intl44 34 30.4 28.8 1.6 
     WW309 260 19.0 18.8 0.2 
     OTHER PULMONARY HYPERTENSION
     US47 40 14.4 14.4 — 
     Intl54 57 (4.4)(2.1)(2.3)
     WW101 97 3.4 4.8 (1.4)
CARDIOVASCULAR / METABOLISM / OTHER
US800931(14.0)(14.0)— 
Intl333351(5.1)(8.2)3.1 
WW1,1331,281(11.5)(12.4)0.9 
     XARELTO
     US636 630 0.8 0.8 — 
     Intl  — — — 
     WW636 630 0.8 0.8 — 
     INVOKANA / INVOKAMET
     US66 156 (57.4)(57.4)— 
     Intl67 68 (1.0)(4.3)3.3 
     WW133 224 (40.3)(41.3)1.0 
     PROCRIT / EPREX
     US47 69 (30.9)(30.9)— 
     Intl65 63 3.1 0.5 2.6 
     WW112 132 (14.6)(15.8)1.2 
     OTHER
     US51 75 (32.6)(32.6)— 
     Intl200 219 (8.7)(11.9)3.2 
     WW251 294 (14.8)(17.2)2.4 
TOTAL PHARMACEUTICAL
US7,2216,43812.2 12.2  
Intl5,7734,98015.9 14.6 1.3 
WW$12,99411,41813.8 %13.2 %0.6 %
See footnotes at end of schedule




Johnson & Johnson
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
MEDICAL DEVICES SEGMENT (2)
INTERVENTIONAL SOLUTIONS
US$444 399 11.1 %11.1 %— %
Intl513 43717.7 15.1 2.6 
WW957 83614.5 13.2 1.3 
ORTHOPAEDICS
US1,249 1,308 (4.5)(4.5)— 
Intl843 774 8.8 6.8 2.0 
WW2,093 2,083 0.5 (0.3)0.8 
     HIPS
     US210 221 (5.3)(5.3)— 
     Intl146 124 18.8 16.0 2.8 
     WW356 345 3.3 2.3 1.0 
     KNEES
     US184 205 (9.8)(9.8)— 
     Intl131 102 28.125.9 2.2 
     WW316 308 2.82.1 0.7 
     TRAUMA
     US455 433 5.3 5.3 — 
     Intl260 253 2.4 0.9 1.5 
     WW715 685 4.2 3.7 0.5 
     SPINE, SPORTS & OTHER
     US400 449 (11.1)(11.1)— 
     Intl306 295 3.5 1.5 2.0 
     WW705 745 (5.3)(6.1)0.8 
See footnotes at end of schedule




Johnson & Johnson
Segment Sales
(Dollars in Millions)
THIRD QUARTER
% Change
20212020Reported
Operational (1)
Currency
MEDICAL DEVICES SEGMENT (2) (Continued)
SURGERY
US$948 913 3.93.9— %
Intl1,457 1,239 17.6 14.8 2.8 
WW2,405 2,152 11.8 10.2 1.6 
     ADVANCED
US440 421 4.6 4.6  
Intl705 579 21.8 18.4 3.4 
WW1,144 1,000 14.6 12.6 2.0 
     GENERAL
US508 492 3.33.3 
Intl752 660 13.9 11.7 2.2 
WW1,261 1,152 9.4 8.1 1.3 
VISION
US475 473 0.6 0.6  
Intl714 608 17.4 17.4 0.0 
WW1,189 1,081 10.1 10.0 0.1 
     CONTACT LENSES / OTHER
US359 375 (4.3)(4.3) 
Intl522 455 14.9 15.2 (0.3)
WW882 830 6.2 6.4 (0.2)
     SURGICAL
US117 98 19.619.6— 
Intl191 153 24.723.7 1.0 
WW308 251 22.722.10.6
TOTAL MEDICAL DEVICES
US3,117 3,092 0.8 0.8  
Intl3,527 3,058 15.4 13.3 2.1 
WW$6,644 6,150 8.0 %7.0 %1.0 %
See footnotes at end of schedule








Johnson & Johnson
Segment Sales
(Dollars in Millions)
NINE MONTHS
% Change
20212020Reported
Operational (1)
Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US$1,9601,9172.2 %2.2 %— %
Intl1,8941,72210.0 3.9 6.1 
WW3,8543,6395.9 3.0 2.9 
SKIN HEALTH / BEAUTY
US1,8621,7675.4 5.4 — 
Intl1,5951,5065.9 2.1 3.8 
WW3,457 3,2735.6 3.9 1.7 
ORAL CARE
US478510(6.2)(6.2)— 
Intl7626949.9 5.9 4.0 
WW1,240 1,204 3.0 0.8 2.2 
BABY CARE
US2882793.3 3.3 — 
Intl8798315.8 4.6 1.2 
WW1,167 1,110 5.2 4.3 0.9 
WOMEN'S HEALTH
US910(5.7)(5.7)— 
Intl6756543.1 2.3 0.8 
WW6846643.0 2.1 0.9 
WOUND CARE / OTHER
US3903705.3 5.3 — 
Intl1861755.8 0.0 5.8 
WW5755455.4 3.6 1.8 
TOTAL CONSUMER HEALTH
US4,987 4,853 2.8 2.8  
Intl5,991 5,582 7.3 3.5 3.8 
WW$10,978 10,435 5.2 %3.1 %2.1 %
See footnotes at end of schedule






Johnson & Johnson
Segment Sales
(Dollars in Millions)
NINE MONTHS
% Change
20212020Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US$7,9327,3308.2 %8.2 %— %
Intl4,4643,61923.3 17.6 5.7 
WW12,39510,95013.2 11.3 1.9 
     REMICADE
     US1,5081,852(18.6)(18.6)— 
     US Exports (4)
197321(38.7)(38.7)— 
     Intl7216737.1 1.4 5.7 
     WW2,4262,846(14.8)(16.1)1.3 
     SIMPONI / SIMPONI ARIA
     US8408400.0 0.0 — 
     Intl8778276.1 2.8 3.3 
     WW1,7171,6673.0 1.4 1.6 
     STELARA
     US4,3963,66819.9 19.9 — 
     Intl2,4041,79533.9 27.5 6.4 
     WW6,8005,46324.5 22.4 2.1 
     TREMFYA
     US975 650 50.1 50.1 — 
     Intl459 316 45.4 38.0 7.4 
     WW1,434 965 48.5 46.1 2.4 
     OTHER IMMUNOLOGY
     US15  **— 
     Intl3 9 (68.6)(70.8)2.2 
     WW18 9 91.689.52.1
INFECTIOUS DISEASES
US1,6351,26529.2 29.2 — 
Intl1,7881,39728.0 23.2 4.8 
WW3,4242,66228.6 26.1 2.5 
     COVID-19 VACCINE
     US421**— 
     Intl346**— 
     WW766**— 
     EDURANT / rilpivirine
     US31 33 (4.8)(4.8)— 
     Intl733 684 7.2 1.7 5.5 
     WW764 716 6.7 1.4 5.3 
     PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
     US1,1281,154(2.2)(2.2)— 
     Intl440461(4.6)(8.6)4.0 
     WW1,5681,615(2.9)(4.1)1.2 
     OTHER INFECTIOUS DISEASES
     US5579(29.6)(29.6)— 
     Intl2702526.9 2.6 4.3 
     WW325331(1.8)