– 2019 Fourth-Quarter Sales of $20.7 Billion reflecting growth of 1.7%, operational growth of 2.6%* and adjusted operational growth of 3.4%*.

– 2019 Full-Year Sales of $82.1 Billion reflecting growth of 0.6%, operational growth of 2.8%* and adjusted operational growth of 4.5%*.

– 2019 Fourth-Quarter EPS of $1.50 increased 33.9%; adjusted EPS of $1.88 decreased 4.6%*.

– 2019 Full-Year EPS of $5.63 increased 0.4%; adjusted EPS of $8.68 increased 6.1%*.

– Company projects continued sales and earnings growth in 2020 guidance.

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

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

OVERALL FINANCIAL RESULTS:

FOURTH QUARTER

TWELVE MONTHS

($ in Millions, except EPS)

2019

2018

%  Change

2019

2018

%  Change

Reported Sales

$       20,747

$       20,394

1.7%

$       82,059

$       81,581

0.6%

Net Earnings

4,010

3,042

31.8%

15,119

15,297

(1.2)%

EPS (diluted)

$           1.50

$           1.12

33.9%

$           5.63

$           5.61

0.4%

Non-GAAP*

FOURTH QUARTER

TWELVE MONTHS

($ in Millions, except EPS)

2019

2018

%  Change

2019

2018

%  Change

Operational Sales1,2

n/a

n/a

2.6%

n/a

n/a

2.8%

Adjusted Operational Sales1,3

n/a

n/a

3.4%

n/a

n/a

4.5%

Adjusted Net Earnings1,4

5,027

5,372

(6.4)%

23,310

22,315

4.5%

Adjusted EPS (diluted)1,4

$           1.88

$           1.97

(4.6)%

$           8.68

$           8.18

6.1%

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

2 Excludes the impact of translational currency

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

Excludes intangible amortization expense and special items

REGIONAL SALES RESULTS:

FOURTH QUARTER

%  Change

($ in Millions)

2019

2018

Reported

Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$       10,774

$       10,629

1.4%

1.4

2.7

International

9,973

9,765

2.1%

4.0

(1.9)

4.1

Worldwide

$       20,747

$       20,394

1.7%

2.6

(0.9)

3.4

TWELVE MONTHS

%  Change

($ in Millions)

2019

2018


Reported


Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$       42,097

$       41,884

0.5%

0.5

2.3

International

39,962

39,697

0.7%

5.3

(4.6)

6.7

Worldwide

$       82,059

$       81,581

0.6%

2.8

(2.2)

4.5

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

2 Excludes the impact of translational currency

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

Note: values may have been rounded

SEGMENT SALES RESULTS:

FOURTH QUARTER

%  Change

($ in Millions)

2019

2018

Reported


Operational1,2

Currency

Adjusted 
Operational1,3

Consumer

$         3,567

$         3,536

0.9%

2.1

(1.2)

1.4

Pharmaceutical

10,548

10,190

3.5%

4.4

(0.9)

4.5

Medical Devices

6,632

6,668

(0.5)%

0.2

(0.7)

2.7

Worldwide

$       20,747

$       20,394

1.7%

2.6

(0.9)

3.4

TWELVE MONTHS

%  Change


($ in Millions)

2019

2018

Reported

Operational1,2

Currency

Adjusted
Operational1,3

Consumer

$       13,898

$       13,853

0.3%

3.0

(2.7)

1.4

Pharmaceutical

42,198

40,734

3.6%

5.8

(2.2)

5.8

Medical Devices

25,963

26,994

(3.8)%

(1.7)

(2.1)

3.9

Worldwide

$       82,059

$       81,581

0.6%

2.8

(2.2)

4.5

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

2 Excludes the impact of translational currency

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

Note: values may have been rounded

FULL-YEAR 2019 SEGMENT COMMENTARY:

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

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

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

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

Regulatory Approvals

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

(press release)

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

(press release)

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

(press release)

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

(press release)

Regulatory Submissions

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

(press release)

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

(press release)

(press release)

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

(press release)

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

(press release)

Other

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

(press release)

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

(press release)

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

(press release)

Agreement Announced to Acquire Remaining Stake in Verb Surgical Inc.

(press release)

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

(press release)

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

(press release)

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

(press release)

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

(press release)

1 Subsequent to the quarter

FULL-YEAR 2020 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.

January 2020

($ in Billions, except EPS)

Adjusted Operational Sales1,2

Change vs. Prior Year

5.0% – 6.0%

Operational Sales2

Change vs. Prior Year

$85.8 to $86.6

4.5% – 5.5%

Estimated Reported Sales3

Change vs. Prior Year

$85.4 to $86.2

4.0% – 5.0%

Adjusted Operational EPS (Diluted)2,4

Change vs. Prior Year

$9.00 to $9.15

3.7% – 5.4%

Adjusted EPS (Diluted)3,4

Change vs. Prior Year

$8.95 to $9.10

3.1% – 4.8%

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

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

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

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: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 30, 2018, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the company’s most recently filed Quarterly Report on Form 10-Q and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.govwww.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

FOURTH QUARTER

TWELVE MONTHS

Percent Change

Percent Change

2019

2018

Total

Operations

Currency

2019

2018

Total

Operations

Currency

Sales to customers by

segment of business

Consumer

    U.S.

$      1,470

1,479

(0.6)

%

(0.6)

$      5,839

5,761

1.4

%

1.4

    International

2,097

2,057

2.0

4.0

(2.0)

8,059

8,092

(0.4)

4.2

(4.6)

3,567

3,536

0.9

2.1

(1.2)

13,898

13,853

0.3

3.0

(2.7)

Pharmaceutical

    U.S.

6,169

5,936

3.9

3.9

23,874

23,286

2.5

2.5

    International

4,379

4,254

2.9

5.1

(2.2)

18,324

17,448

5.0

10.1

(5.1)

10,548

10,190

3.5

4.4

(0.9)

42,198

40,734

3.6

5.8

(2.2)

Medical Devices

    U.S.

3,135

3,214

(2.4)

(2.4)

12,384

12,837

(3.5)

(3.5)

    International

3,497

3,454

1.3

2.7

(1.4)

13,579

14,157

(4.1)

(0.1)

(4.0)

6,632

6,668

(0.5)

0.2

(0.7)

25,963

26,994

(3.8)

(1.7)

(2.1)

U.S.

10,774

10,629

1.4

1.4

42,097

41,884

0.5

0.5

International

9,973

9,765

2.1

4.0

(1.9)

39,962

39,697

0.7

5.3

(4.6)

Worldwide

$    20,747

20,394

1.7

%

2.6

(0.9)

$    82,059

81,581

0.6

%

2.8

(2.2)

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

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

FOURTH QUARTER

TWELVE MONTHS

Percent Change

Percent Change

2019

2018

Total

Operations

Currency

2019

2018

Total

Operations

Currency

Sales to customers by

geographic area

U.S.

$  10,774

10,629

1.4

%

1.4

$  42,097

41,884

0.5

%

0.5

Europe

4,663

4,730

(1.4)

1.0

(2.4)

18,466

18,753

(1.5)

3.8

(5.3)

Western Hemisphere excluding U.S.

1,495

1,456

2.6

9.3

(6.7)

5,941

6,113

(2.8)

5.7

(8.5)

Asia-Pacific, Africa

3,815

3,579

6.6

5.8

0.8

15,555

14,831

4.9

6.9

(2.0)

International

9,973

9,765

2.1

4.0

(1.9)

39,962

39,697

0.7

5.3

(4.6)

Worldwide

$  20,747

20,394

1.7

%

2.6

(0.9)

$  82,059

81,581

0.6

%

2.8

(2.2)

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

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)

FOURTH QUARTER

2019

2018

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$ 20,747

100.0

$ 20,394

100.0

1.7

Cost of products sold

7,134

34.4

6,961

34.1

2.5

Gross Profit

13,613

65.6

13,433

65.9

1.3

Selling, marketing and administrative expenses

6,039

29.1

5,991

29.4

0.8

Research and development expense

3,232

15.6

3,224

15.8

0.2

Interest (income) expense, net

4

0.0

54

0.3

Other (income) expense, net

16

0.1

978

4.8

Restructuring

104

0.5

64

0.3

Earnings before provision for taxes on income

4,218

20.3

3,122

15.3

35.1

Provision for taxes on income

208

1.0

80

0.4

160.0

Net earnings

$   4,010

19.3

$   3,042

14.9

31.8

Net earnings per share (Diluted)

$     1.50

$     1.12

33.9

Average shares outstanding (Diluted)

2,669.1

2,724.0

Effective tax rate

4.9

%

2.6

%

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

Earnings before provision for taxes on income

$   5,628

27.1

$   6,046

29.6

(6.9)

Net earnings

$   5,027

24.2

$   5,372

26.3

(6.4)

Net earnings per share (Diluted)

$     1.88

$     1.97

(4.6)

Effective tax rate

10.7

%

11.1

%

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

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS

2019

2018

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$ 82,059

100.0

$ 81,581

100.0

0.6

Cost of products sold

27,556

33.6

27,091

33.2

1.7

Gross Profit

54,503

66.4

54,490

66.8

0.0

Selling, marketing and administrative expenses

22,178

27.0

22,540

27.6

(1.6)

Research and development expense

11,355

13.8

10,775

13.2

5.4

In-process research and development

890

1.1

1,126

1.4

Interest (income) expense, net

(39)

0.0

394

0.5

Other (income) expense, net

2,525

3.1

1,405

1.7

Restructuring

266

0.3

251

0.3

Earnings before provision for taxes on income

17,328

21.1

17,999

22.1

(3.7)

Provision for taxes on income

2,209

2.7

2,702

3.3

(18.2)

Net earnings

$ 15,119

18.4

$ 15,297

18.8

(1.2)

Net earnings per share (Diluted)

$     5.63

$     5.61

0.4

Average shares outstanding (Diluted)

2,684.3

2,728.7

Effective tax rate

12.7

%

15.0

%

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

Earnings before provision for taxes on income

$ 28,225

34.4

$ 26,698

32.7

5.7

Net earnings

$ 23,310

28.4

$ 22,315

27.4

4.5

Net earnings per share (Diluted)

$     8.68

$     8.18

6.1

Effective tax rate

17.4

%

16.4

%

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

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Fourth Quarter

% Incr. /

Twelve Months

% Incr. /

(Dollars in Millions Except Per Share Data)

2019

2018

(Decr.)

2019

2018

(Decr.)

Earnings before provision for taxes on income – as reported

$        4,218

3,122

35.1

%

$    17,328

17,999

(3.7)

%

Litigation expense, net

264

1,288

5,096

1,991

Intangible asset amortization expense

1,142

1,073

4,528

4,357

In-process research and development

890

1,126

Restructuring/Other (1)

251

227

611

700

Actelion acquisition related cost

62

43

185

243

Auris Health acquisition related cost

16

72

AMO acquisition related cost

12

27

62

109

Unrealized loss/(gain) on securities

(350)

182

(567)

179

Contingent liability reversal

(184)

Tax legislation and related impacts

72

72

Other

13

12

20

106

Earnings before provision for taxes on income – as adjusted

$        5,628

6,046

(6.9)

%

$    28,225

26,698

5.7

%

Net Earnings – as reported

$        4,010

3,042

31.8

%

$    15,119

15,297

(1.2)

%

Litigation expense, net

251

1,113

4,015

1,722

Intangible asset amortization expense

1,008

957

3,844

3,888

In-process research and development

703

859

Restructuring/Other

214

190

511

585

Actelion acquisition related cost

58

39

172

232

Auris Health acquisition related cost

12

56

AMO acquisition related cost

12

21

52

89

Unrealized loss/(gain) on securities

(277)

143

(448)

141

Contingent liability reversal

(184)

Tax legislation and related impacts (2)

(184)

(137)

(575)

(390)

Other

(77)

4

(139)

76

Net Earnings – as adjusted

$        5,027

5,372

(6.4)

%

$    23,310

22,315

4.5

%

Diluted Net Earnings per share – as reported

$          1.50

1.12

33.9

%

$        5.63

5.61

0.4

%

Litigation expense, net

0.10

0.41

1.50

0.63

Intangible asset amortization expense

0.38

0.35

1.43

1.42

In-process research and development

0.26

0.32

Restructuring/Other

0.08

0.07

0.19

0.21

Actelion acquisition related cost

0.02

0.01

0.06

0.09

Auris Health acquisition related cost

0.02

AMO acquisition related cost

0.01

0.02

0.03

Unrealized loss/(gain) on securities

(0.10)

0.05

(0.17)

0.05

Contingent liability reversal

(0.07)

Tax legislation and related impacts

(0.07)

(0.05)

(0.21)

(0.14)

Other

(0.03)

(0.05)

0.03

Diluted Net Earnings per share – as adjusted

$          1.88

1.97

(4.6)

%

$        8.68

8.18

6.1

%

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

2.02

8.06

Impact of currency at 2018 foreign currency exchange rates

0.03

(0.05)

0.22

0.12

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

$          1.91

1.97

(3.0)

%

$        8.90

8.18

8.8

%

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

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

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

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

(2) Includes foreign currency translation

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

 FOURTH QUARTER 2019 ACTUAL vs. 2018 ACTUAL 

 Segments 

 Consumer 

 Pharmaceutical 

 Medical Devices 

 Total 

 WW As Reported 

0.9%

3.5%

(0.5)%

1.7%

 U.S. 

(0.6)%

3.9%

(2.4)%

1.4%

 International 

2.0%

2.9%

1.3%

2.1%

 WW Currency 

(1.2)

(0.9)

(0.7)

(0.9)

 U.S. 

 International 

(2.0)

(2.2)

(1.4)

(1.9)

 WW Operational 

2.1%

4.4%

0.2%

2.6%

 U.S. 

(0.6)%

3.9%

(2.4)%

1.4%

 International 

4.0%

5.1%

2.7%

4.0%

Beauty

RoC

0.6

0.1

 U.S. 

1.4

0.2

 International 

0.0

0.0

Beauty

Dr. Ci Labo – Japan

(1.7)

(0.3)

 U.S. 

0.0

0.0

 International 

(2.9)

(0.6)

Specialty Surgery

Advanced Sterilization Products

2.4

0.8

 U.S. 

3.0

0.9

 International 

2.0

0.7

Baby Care

Baby Center

0.3

0.1

 U.S. 

0.8

0.1

 International 

0.0

0.0

All Other Acquisitions and Divestitures

0.0

0.1

0.1

0.1

 U.S. 

0.0

0.1

0.0

0.1

 International 

0.1

0.0

0.1

0.1

WW Adjusted Operational

1.4%

4.5%

2.7%

3.4%

 U.S. 

1.6%

4.1%

0.6%

2.7%

 International 

1.3%

5.1%

4.7%

4.1%

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

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

 TWELVE MONTHS 2019 ACTUAL vs. 2018 ACTUAL 

 Segments 

 Consumer 

 Pharmaceutical 

 Medical Devices

 Total 

 WW As Reported 

0.3%

3.6%

(3.8)%

0.6%

 U.S. 

1.4%

2.5%

(3.5)%

0.5%

 International 

(0.4)%

5.0%

(4.1)%

0.7%

 WW Currency 

(2.7)

(2.2)

(2.1)

(2.2)

 U.S. 

 International 

(4.6)

(5.1)

(4.0)

(4.6)

 WW Operational 

3.0%

5.8%

(1.7)%

2.8%

 U.S. 

1.4%

2.5%

(3.5)%

0.5%

 International 

4.2%

10.1%

(0.1)%

5.3%

Beauty

Nizoral

0.2

0.0

 U.S. 

0.1

0.0

 International 

0.3

0.1

OTC

Zarbees

(0.4)

(0.1)

 U.S. 

(1.1)

(0.1)

 International 

0.0

0.0

Diabetes Care

LifeScan

3.8

1.3

 U.S. 

2.9

0.9

 International 

4.6

1.7

Beauty

RoC

0.7

0.1

 U.S. 

1.3

0.2

 International 

0.2

0.0

Beauty

Dr. Ci Labo – Japan

(2.3)

(0.4)

 U.S. 

0.0

0.0

 International 

(3.9)

(0.8)

Specialty Surgery

Advanced Sterilization Products

1.6

0.6

 U.S. 

2.2

0.7

 International 

1.0

0.4

Baby Care

Baby Center

0.1

0.0

 U.S. 

0.3

0.0

 International 

0.0

0.0

All Other Acquisitions and Divestitures

0.1

0.0

0.1

0.1

 U.S. 

0.0

0.1

0.1

0.1

 International 

0.1

0.0

0.1

0.1

WW Adjusted Operational

1.4%

5.8%

3.9%

4.5%

 U.S. 

2.1%

2.7%

1.8%

2.3%

 International 

1.0%

10.1%

5.7%

6.7%

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

REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER

TWELVE MONTHS

% Change

% Change

2019

2018

Reported

Operational (1)

Currency

2019

2018

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2)

BABY CARE

US

$            85

116

-26.7%

-26.7%

$          362

422

-14.2%

-14.2%

Intl

336

357

-5.9%

-3.7%

-2.2%

1,313

1,436

-8.6%

-3.7%

-4.9%

WW

421

473

-11.0%

-9.3%

-1.7%

1,675

1,858

-9.9%

-6.1%

-3.8%

BEAUTY

US

582

612

-4.9%

-4.9%

2,392

2,403

-0.4%

-0.4%

Intl

568

499

13.8%

15.6%

-1.8%

2,201

1,979

11.2%

15.3%

-4.1%

WW

1,150

1,111

3.5%

4.3%

-0.8%

4,593

4,382

4.8%

6.7%

-1.9%

ORAL CARE

US

159

165

-3.6%

-3.6%

621

637

-2.5%

-2.5%

Intl

233

234

0.2%

2.2%

-2.0%

906

918

-1.2%

3.3%

-4.5%

WW

393

399

-1.4%

-0.2%

-1.2%

1,528

1,555

-1.7%

0.9%

-2.6%

OTC

US

542

491

10.3%

10.3%

2,010

1,850

8.6%

8.6%

Intl

653

657

-0.6%

0.8%

-1.4%

2,434

2,484

-2.0%

2.2%

-4.2%

WW

1,195

1,148

4.1%

4.9%

-0.8%

4,444

4,334

2.5%

4.9%

-2.4%

WOMEN’S HEALTH

US

3

3

-11.8%

-11.8%

12

13

-5.5%

-5.5%

Intl

250

254

-1.5%

3.1%

-4.6%

974

1,036

-6.0%

1.1%

-7.1%

WW

253

257

-1.6%

2.9%

-4.5%

986

1,049

-6.0%

1.0%

-7.0%

WOUND CARE / OTHER

US

98

92

7.5%

7.5%

441

436

1.2%

1.2%

Intl

57

56

-0.4%

0.6%

-1.0%

230

239

-3.9%

-0.7%

-3.2%

WW

155

148

4.5%

4.8%

-0.3%

671

675

-0.6%

0.5%

-1.1%

TOTAL CONSUMER

US

1,470

1,479

-0.6%

-0.6%

5,839

5,761

1.4%

1.4%

Intl

2,097

2,057

2.0%

4.0%

-2.0%

8,059

8,092

-0.4%

4.2%

-4.6%

WW

$       3,567

3,536

0.9%

2.1%

-1.2%

$     13,898

13,853

0.3%

3.0%

-2.7%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER

TWELVE MONTHS

% Change

% Change

2019

2018

Reported

Operational (1)

Currency

2019

2018

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2)

IMMUNOLOGY

US

$       2,517

2,356

6.8%

6.8%

$       9,641

9,073

6.3%

6.3%

Intl

1,005

986

1.9%

4.3%

-2.4%

4,309

4,047

6.5%

11.6%

-5.1%

WW

3,522

3,342

5.4%

6.1%

-0.7%

13,950

13,120

6.3%

7.9%

-1.6%

REMICADE

US

755

843

-10.4%

-10.4%

3,079

3,664

-16.0%

-16.0%

US Exports (3)

68

90

-25.0%

-25.0%

294

436

-32.7%

-32.7%

Intl

212

305

-30.4%

-28.9%

-1.5%

1,007

1,226

-17.8%

-13.7%

-4.1%

WW

1,035

1,238

-16.4%

-16.0%

-0.4%

4,380

5,326

-17.8%

-16.8%

-1.0%

SIMPONI / SIMPONI ARIA

US

302

272

10.7%

10.7%

1,159

1,051

10.2%

10.2%

Intl

213

210

1.4%

3.7%

-2.3%

1,029

1,033

-0.4%

4.4%

-4.8%

WW

515

482

6.6%

7.6%

-1.0%

2,188

2,084

5.0%

7.3%

-2.3%

STELARA

US

1,194

1,009

18.4%

18.4%

4,346

3,469

25.3%

25.3%

Intl

506

435

16.3%

19.1%

-2.8%

2,015

1,687

19.4%

25.1%

-5.7%

WW

1,700

1,444

17.7%

18.6%

-0.9%

6,361

5,156

23.4%

25.2%

-1.8%

TREMFYA

US

199

142

39.7%

39.7%

764

453

68.5%

68.5%

Intl

71

33

*

*

*

248

91

*

*

*

WW

270

175

53.9%

55.1%

-1.2%

1,012

544

85.9%

87.7%

-1.8%

OTHER IMMUNOLOGY

US

Intl

2

3

-22.4%

-24.0%

1.6%

10

10

4.5%

4.7%

-0.2%

WW

2

3

-22.4%

-24.0%

1.6%

10

10

4.5%

4.7%

-0.2%

INFECTIOUS DISEASES

US

435

372

17.1%

17.1%

1,597

1,378

15.9%

15.9%

Intl

430

430

0.2%

3.0%

-2.8%

1,815

1,926

-5.7%

-0.2%

-5.5%

WW

866

802

8.0%

9.6%

-1.6%

3,413

3,304

3.3%

6.5%

-3.2%

EDURANT / rilpivirine

US

14

16

-12.3%

-12.3%

50

58

-13.7%

-13.7%

Intl

209

177

17.7%

20.9%

-3.2%

812

758

7.1%

12.7%

-5.6%

WW

222

193

15.2%

18.2%

-3.0%

861

816

5.6%

10.8%

-5.2%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA

US

390

322

21.0%

21.0%

1,422

1,169

21.6%

21.6%

Intl

155

173

-10.7%

-7.8%

-2.9%

689

786

-12.3%

-6.8%

-5.5%

WW

544

495

9.9%

10.9%

-1.0%

2,110

1,955

8.0%

10.2%

-2.2%

OTHER INFECTIOUS DISEASES

US

32

34

-5.8%

-5.8%

126

151

-16.5%

-16.5%

Intl

67

80

-15.4%

-13.3%

-2.1%

315

382

-17.6%

-12.3%

-5.3%

WW

99

114

-12.5%

-11.0%

-1.5%

441

533

-17.3%

-13.5%

-3.8%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER

TWELVE MONTHS

% Change

% Change

2019

2018

Reported

Operational (1)

Currency

2019

2018

Reported

Operational (1)

Currency

NEUROSCIENCE

US

747

660

13.2%

13.2%

2,919

2,574

13.4%

13.4%

Intl

819

840

-2.5%

-1.2%

-1.3%

3,409

3,503

-2.7%

1.5%

-4.2%

WW

1,566

1,500

4.4%

5.2%

-0.8%

6,328

6,077

4.1%

6.6%

-2.5%

CONCERTA / methlyphenidate

US

37

38

-4.4%

-4.4%

233

229

1.7%

1.7%

Intl

115

112

2.4%

3.0%

-0.6%

463

434

6.6%

10.3%

-3.7%

WW

152

150

0.7%

1.1%

-0.4%

696

663

4.9%

7.3%

-2.4%

INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA

US

564

485

16.2%

16.2%

2,107

1,791

17.6%

17.6%

Intl

308

278

10.7%

13.2%

-2.5%

1,224

1,137

7.7%

13.0%

-5.3%

WW

871

763

14.2%

15.1%

-0.9%

3,330

2,928

13.7%

15.8%

-2.1%

RISPERDAL CONSTA

US

77

77

0.3%

0.3%

314

315

-0.3%

-0.3%

Intl

82

101

-18.9%

-17.0%

-1.9%

374

422

-11.4%

-6.5%

-4.9%

WW

160

178

-10.6%

-9.5%

-1.1%

688

737

-6.7%

-3.9%

-2.8%

OTHER NEUROSCIENCE

US

70

60

16.7%

16.7%

266

239

11.4%

11.4%

Intl

314

349

-9.9%

-9.3%

-0.6%

1,349

1,510

-10.7%

-7.4%

-3.3%

WW

383

409

-6.1%

-5.5%

-0.6%

1,614

1,749

-7.7%

-4.9%

-2.8%

ONCOLOGY

US

1,153

1,063

8.5%

8.5%

4,299

4,331

-0.7%

-0.7%

Intl

1,563

1,426

9.6%

12.2%

-2.6%

6,393

5,513

16.0%

21.8%

-5.8%

WW

2,716

2,489

9.1%

10.6%

-1.5%

10,692

9,844

8.6%

11.9%

-3.3%

DARZALEX

US

444

323

37.8%

37.8%

1,567

1,203

30.3%

30.3%

Intl

385

261

47.5%

52.8%

-5.3%

1,430

822

73.9%

84.1%

-10.2%

WW

830

584

42.1%

44.5%

-2.4%

2,998

2,025

48.0%

52.2%

-4.2%

IMBRUVICA

US

392

318

22.8%

22.8%

1,555

1,129

37.7%

37.7%

Intl

483

385

25.9%

29.7%

-3.8%

1,856

1,486

24.9%

32.1%

-7.2%

WW

875

703

24.5%

26.6%

-2.1%

3,411

2,615

30.4%

34.5%

-4.1%

VELCADE

US

Intl

115

252

-54.6%

-55.2%

0.6%

751

1,116

-32.7%

-30.1%

-2.6%

WW

115

252

-54.6%

-55.2%

0.6%

751

1,116

-32.7%

-30.1%

-2.6%

ZYTIGA / abiraterone acetate

US

194

351

-44.8%

-44.8%

810

1,771

-54.3%

-54.3%

Intl

483

435

11.2%

12.9%

-1.7%

1,985

1,727

15.0%

19.8%

-4.8%

WW

677

786

-13.8%

-12.9%

-0.9%

2,795

3,498

-20.1%

-17.7%

-2.4%

OTHER ONCOLOGY

US

122

71

75.1%

75.1%

367

228

61.0%

61.0%

Intl

97

93

3.0%

5.9%

-2.9%

371

362

2.4%

8.1%

-5.7%

WW

220

164

33.7%

35.4%

-1.7%

739

590

25.0%

28.6%

-3.6%

PULMONARY HYPERTENSION

US

388

436

-11.1%

-11.1%

1,684

1,651

2.0%

2.0%

Intl

235

231

1.6%

3.1%

-1.5%

939

922

1.9%

6.3%

-4.4%

WW

623

667

-6.7%

-6.2%

-0.5%

2,623

2,573

1.9%

3.5%

-1.6%

OPSUMIT

US

185

189

-2.4%

-2.4%

766

700

9.4%

9.4%

Intl

143

134

5.8%

7.5%

-1.7%

562

515

9.0%

14.1%

-5.1%

WW

326

323

1.0%

1.7%

-0.7%

1,327

1,215

9.2%

11.4%

-2.2%

TRACLEER / bosentan

US

10

60

-83.3%

-83.3%

131

268

-51.1%

-51.1%

Intl

46

64

-27.6%

-28.8%

1.2%

210

278

-24.3%

-22.6%

-1.7%

WW

56

124

-54.8%

-55.4%

0.6%

341

546

-37.5%

-36.6%

-0.9%

UPTRAVI

US

178

165

7.4%

7.4%

714

598

19.3%

19.3%

Intl

30

16

92.5%

99.5%

-7.0%

105

65

62.4%

70.7%

-8.3%

WW

208

181

14.8%

15.4%

-0.6%

819

663

23.5%

24.3%

-0.8%

OTHER

US

16

22

-27.7%

-27.7%

74

85

-13.7%

-13.7%

Intl

16

17

-5.9%

-2.4%

-3.5%

62

64

-3.7%

3.3%

-7.0%

WW

32

39

-18.1%

-16.5%

-1.6%

135

149

-9.4%

-6.4%

-3.0%

CARDIOVASCULAR / METABOLISM / OTHER

US

930

1,049

-11.4%

-11.4%

3,734

4,279

-12.7%

-12.7%

Intl

327

341

-4.4%

-3.5%

-0.9%

1,458

1,537

-5.2%

-1.3%

-3.9%

WW

1,256

1,390

-9.7%

-9.5%

-0.2%

5,192

5,816

-10.7%

-9.7%

-1.0%

XARELTO

US

609

608

0.4%

0.4%

2,313

2,477

-6.6%

-6.6%

Intl

WW

609

608

0.4%

0.4%

2,313

2,477

-6.6%

-6.6%

INVOKANA / INVOKAMET

US

125

188

-33.8%

-33.8%

536

711

-24.6%

-24.6%

Intl

52

40

33.7%

36.0%

-2.3%

199

170

17.3%

22.1%

-4.8%

WW

177

228

-22.2%

-21.8%

-0.4%

735

881

-16.5%

-15.6%

-0.9%

PROCRIT / EPREX

US

118

151

-21.6%

-21.6%

505

674

-25.1%

-25.1%

Intl

65

70

-7.1%

-7.0%

-0.1%

285

314

-9.2%

-6.5%

-2.7%

WW

183

221

-17.0%

-16.9%

-0.1%

790

988

-20.0%

-19.2%

-0.8%

OTHER

US

78

102

-25.0%

-25.0%

380

417

-9.1%

-9.1%

Intl

209

231

-10.0%

-9.1%

-0.9%

974

1,053

-7.6%

-3.5%

-4.1%

WW

286

333

-14.6%

-14.0%

-0.6%

1,353

1,470

-8.0%

-5.1%

-2.9%

TOTAL PHARMACEUTICAL

US

6,169

5,936

3.9%

3.9%

23,874

23,286

2.5%

2.5%

Intl

4,379

4,254

2.9%

5.1%

-2.2%

18,324

17,448

5.0%

10.1%

-5.1%

WW

$     10,548

10,190

3.5%

4.4%

-0.9%

$     42,198

40,734

3.6%

5.8%

-2.2%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER

TWELVE MONTHS

% Change

% Change

2019

2018

Reported

Operational (1)

Currency

2019

2018

Reported

Operational (1)

Currency

MEDICAL DEVICES SEGMENT (2)(4)

DIABETES CARE(4)

US

$               –

$               –

371

*

*

Intl

638

*

*

*

WW

1,009

*

*

*

INTERVENTIONAL SOLUTIONS

US

377

336

12.2%

12.2%

1,443

1,283

12.5%

12.5%

Intl

398

350

13.4%

14.3%

-0.9%

1,554

1,363

14.0%

17.8%

-3.8%

WW

774

686

12.8%

13.3%

-0.5%

2,997

2,646

13.3%

15.2%

-1.9%

ORTHOPAEDICS

US

1,369

1,358

0.9%

0.9%

5,319

5,281

0.7%

0.7%

Intl

904

904

-0.1%

1.7%

-1.8%

3,520

3,604

-2.3%

1.9%

-4.2%

WW

2,273

2,262

0.5%

1.2%

-0.7%

8,839

8,885

-0.5%

1.2%

-1.7%

HIPS

US

230

220

4.9%

4.9%

863

841

2.6%

2.6%

Intl

147

145

1.2%

3.0%

-1.8%

575

577

-0.3%

4.2%

-4.5%

WW

377

365

3.4%

4.2%

-0.8%

1,438

1,418

1.4%

3.3%

-1.9%

KNEES

US

239

239

0.2%

0.2%

889

911

-2.4%

-2.4%

Intl

156

153

1.5%

3.2%

-1.7%

591

591

0.0%

4.1%

-4.1%

WW

395

392

0.7%

1.4%

-0.7%

1,480

1,502

-1.4%

0.2%

-1.6%

TRAUMA

US

413

403

2.3%

2.3%

1,652

1,599

3.3%

3.3%

Intl

273

271

0.8%

2.6%

-1.8%

1,068

1,100

-2.9%

1.4%

-4.3%

WW

686

674

1.7%

2.5%

-0.8%

2,720

2,699

0.8%

2.5%

-1.7%

SPINE & OTHER

US

488

496

-1.6%

-1.6%

1,915

1,930

-0.8%

-0.8%

Intl

329

335

-2.1%

-0.4%

-1.7%

1,286

1,336

-3.8%

0.4%

-4.2%

WW

817

831

-1.8%

-1.1%

-0.7%

3,201

3,266

-2.0%

-0.3%

-1.7%

SURGERY

US

961

1,094

-12.2%

-12.2%

3,828

4,125

-7.2%

-7.2%

Intl

1,481

1,493

-0.8%

1.2%

-2.0%

5,673

5,776

-1.8%

2.7%

-4.5%

WW

2,442

2,587

-5.6%

-4.4%

-1.2%

9,501

9,901

-4.0%

-1.4%

-2.6%

ADVANCED

US

428

441

-3.0%

-3.0%

1,637

1,657

-1.2%

-1.2%

Intl

647

614

5.5%

7.6%

-2.1%

2,458

2,345

4.8%

9.4%

-4.6%

WW

1,076

1,055

2.0%

3.2%

-1.2%

4,095

4,002

2.3%

5.0%

-2.7%

GENERAL

US

451

469

-3.9%

-3.9%

1,762

1,751

0.6%

0.6%

Intl

720

712

1.2%

3.3%

-2.1%

2,718

2,806

-3.1%

1.3%

-4.4%

WW

1,171

1,181

-0.8%

0.4%

-1.2%

4,480

4,557

-1.7%

1.0%

-2.7%

SPECIALTY

US

83

184

-55.3%

-55.3%

430

717

-40.1%

-40.1%

Intl

114

167

-32.3%

-30.7%

-1.6%

497

625

-20.5%

-16.4%

-4.1%

WW

195

351

-44.4%

-43.6%

-0.8%

926

1,342

-31.0%

-29.0%

-2.0%

VISION

US

428

426

0.3%

0.3%

1,794

1,777

0.9%

0.9%

Intl

713

707

1.0%

1.2%

-0.2%

2,830

2,776

2.0%

4.9%

-2.9%

WW

1,141

1,133

0.7%

0.9%

-0.2%

4,624

4,553

1.6%

3.3%

-1.7%

CONTACT LENSES / OTHER

US

311

289

7.7%

7.7%

1,304

1,237

5.4%

5.4%

Intl

522

527

-0.8%

-0.9%

0.1%

2,088

2,065

1.1%

4.0%

-2.9%

WW

833

816

2.2%

2.1%

0.1%

3,392

3,302

2.7%

4.6%

-1.9%

SURGICAL

US

117

137

-15.2%

-15.2%

490

540

-9.4%

-9.4%

Intl

191

180

6.4%

7.6%

-1.2%

742

711

4.4%

7.3%

-2.9%

WW

309

317

-3.0%

-2.3%

-0.7%

1,232

1,251

-1.6%

0.1%

-1.7%

TOTAL MEDICAL DEVICES

US

3,135

3,214

-2.4%

-2.4%

12,384

12,837

-3.5%

-3.5%

Intl

3,497

3,454

1.3%

2.7%

-1.4%

13,579

14,157

-4.1%

-0.1%

-4.0%

WW

$       6,632

6,668

-0.5%

0.2%

-0.7%

$     25,963

26,994

-3.8%

-1.7%

-2.1%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures,
and therefore, may not recalculate precisely.

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

(3) Reported as U.S. sales

(4) Reflects LifeScan divestiture October 2, 2018

SOURCE: Johnson & Johnson, PR Newswire, 23rd January 2020

Matt Woods

Author Matt Woods

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