Johnson & Johnson Reports 2017 Fourth-Quarter Results

NEW BRUNSWICK, N.J., Jan. 23, 2018 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $20.2 billion for the fourth quarter of 2017, an increase of 11.5% as compared to the fourth quarter of 2016. Operational sales results increased 9.4% and the positive impact of currency was 2.1%. Domestic sales increased 9.8%. International sales increased 13.5%, reflecting operational growth of 9.0% and a positive currency impact of 4.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the fourth quarter of 2017 increased 4.2%, domestic sales increased 4.1% and international sales increased 4.3%.^*

Worldwide sales for the full-year 2017 were $76.5 billion, an increase of 6.3% versus 2016. Operational results increased 6.0% and the positive impact of currency was 0.3%. Domestic sales increased 5.4%. International sales increased 7.4%, reflecting operational growth of 6.6% and a positive currency impact of 0.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the full-year 2017 increased 2.4%, domestic sales increased 1.6% and international sales increased 3.3%.^*

Net loss and diluted loss per share for the fourth quarter of 2017 were $10.7 billion and $3.99, respectively. Fourth-quarter 2017 net loss included after-tax intangible amortization expense of approximately $0.9 billion and a net charge for after-tax special items of approximately $14.6 billion. Included in these special items is a provisional amount of approximately $13.6 billion associated with the recent enactment of tax legislation.^** Fourth-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a net charge for after-tax special items of approximately $0.3 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.8 billion and adjusted diluted earnings per share were $1.74, representing increases of 9.5% and 10.1%, respectively, as compared to the same period in 2016.^* On an operational basis, adjusted diluted earnings per share increased 5.7%.^* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

Net earnings and diluted earnings per share for the full-year 2017 were $1.3 billion and $0.47, respectively.  Full-year net earnings included after-tax intangible amortization expense of approximately $2.5 billion and a charge for after-tax special items of approximately $16.2 billion. Included in these special items is a provisional amount of approximately $13.6 billion associated with the recent enactment of tax legislation.^** Full-year 2016 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $1.3 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2017 were $20.0 billion and adjusted diluted earnings per share were $7.30, representing increases of 6.8% and 8.5%, respectively, as compared to the same period in 2016.^* On an operational basis, adjusted diluted earnings per share also increased 7.6%.^* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

'Johnson & Johnson delivered strong adjusted earnings per share growth of 8.5% and total shareholder return of greater than 24% in 2017, driven by the robust performance of our Pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses,' said Alex Gorsky, Chairman and Chief Executive Officer. 'As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. Johnson & Johnson is uniquely positioned to lead during this dynamic era and deliver innovative solutions for patients and consumers that drive sustainable, long-term growth. We are pleased with the passage of recent legislation modernizing the U.S. tax system, which enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs facing health care today.'

Mr. Gorsky continued, 'I want to thank all of our talented colleagues for their commitment, passion and dedication to transforming the lives of patients and consumers worldwide.'

The Company announced its 2018 full-year guidance for sales of $80.6 billion to $81.4 billion reflecting expected operational growth in the range of 3.5% to 4.5%. The Company also announced adjusted earnings guidance for full-year 2018 of $8.00 to $8.20 per share reflecting expected operational growth in the range of 6.8% to 9.6%.^* Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.

Segment Sales Performance
Worldwide Consumer sales of $13.6 billion for the full-year 2017 represented an increase of 2.2% versus the prior year, consisting of an operational increase of 1.3% and a positive impact from currency of 0.9%. Domestic sales increased 2.7%; international sales increased 1.9%, which reflected an operational increase of 0.4% and a positive currency impact of 1.5%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales decreased 0.5%, domestic sales decreased 0.7% and international sales decreased 0.3%^*.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were negatively impacted by declines in the Baby Care and Oral Care businesses, mostly offset by growth in over-the-counter products, including TYLENOL^® analgesics and upper respiratory products, and NEUTROGENA^® beauty products.

Worldwide Pharmaceutical sales of $36.3 billion for the full-year 2017 represented an increase of 8.3% versus the prior year with an operational increase of 8.0% and a positive impact from currency of 0.3%. Domestic sales increased 6.7%; international sales increased 10.8%, which reflected an operational increase of 10.1% and a positive currency impact of 0.7%. Sales included the impact of the acquisition of Actelion Ltd. which was completed in June 2017 and contributed 4.2% to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 4.2%, domestic sales increased 3.1% and international sales increased 5.8%.^*  Worldwide operational sales growth was negatively impacted by approximately 1.8 points due to a positive adjustment of U.S. rebate accruals in the first half of 2016, which did not repeat in the first half  of 2017.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by new products and the strength of core products. Strong growth in new products include DARZALEX^® (daratumumab), for the treatment of patients with 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 and TREMFYA^® (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis.

Additional contributors to operational sales growth included STELARA^® (ustekinumab), a biologic for the treatment of  a number of immune-mediated inflammatory diseases, INVEGA^® SUSTENNA^®/XEPLION^®/TRINZA^® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, ZYTIGA^®  (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, and XARELTO^® (rivaroxaban), an oral anticoagulant, partially offset by declines in REMICADE^® (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, due to biosimilar entrants.

During the quarter, the U.S. Food and Drug Administration (FDA) approved JULUCA^® (rilpivirine and dolutegravir), the first, complete, single-pill, two-drug regimen for the treatment of human immunodeficiency virus type 1 (HIV-1) infection; a 10 mg once-daily dose of XARELTO^® (rivaroxaban) for reducing the continued risk for recurrent venous thromboembolism after completing at least six months of initial anticoagulation therapy; and SIMPONI ARIA^® (golimumab) for the treatment of adults with active psoriatic arthritis or active ankylosing spondylitis. The European Commission approved TREMFYA^® (guselkumab) for the treatment of adults with moderate to severe plaque psoriasis and granted approval to broaden the existing marketing authorization for ZYTIGA^® (abiraterone acetate) plus prednisone / prednisolone to include the treatment of newly-diagnosed high-risk metastatic hormone-sensitive prostate cancer.

Regulatory applications for approval were submitted to the FDA and European Medicines Agency to expand the current indication of DARZALEX^® (daratumumab) for use in combination with bortezomib, melphalan and prednisone, as a treatment for newly diagnosed patients with multiple myeloma ineligible for autologous stem cell transplantation.  In addition, a supplemental New Drug Application was submitted to the FDA for two new XARELTO^® (rivaroxaban) vascular indications: reducing the risk of major cardiovascular (CV) events such as CV death, heart attack or stroke in patients with chronic coronary and/or peripheral artery disease (CAD/PAD), and for reducing the risk of acute limb ischemia in patients with PAD.

Also in the quarter, a worldwide collaboration and license agreement was executed with Legend Biotech, a subsidiary of GenScript Biotech Corporation, to develop, manufacture and commercialize a chimeric antigen receptor (CAR) T-cell therapy, LCAR-B38M, targeting BCMA for the treatment of multiple myeloma.

Worldwide Medical Devices sales of $26.6 billion for the full-year 2017 represented an increase of 5.9% versus the prior year consisting of an operational increase of 5.7% and a positive currency impact of 0.2%. Domestic sales increased 4.5%; international sales increased 7.1%, which reflected an operational increase of 6.7% and a positive currency impact of 0.4%. Sales included the impact of the acquisition of Abbott Medical Optics which contributed 4.5%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.5%, domestic sales were flat and international sales increased 3.0%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business; endocutters and biosurgicals in the Advanced Surgery business; ACUVUE^® contact lenses in the Vision Care business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business and spine products in the Orthopaedics business.

About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

^* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

^** The provisional estimates are based on the Company's initial analysis of the Tax Cuts and Jobs Act (the 'Act') as of January 18, 2018.  Given the significant complexity of the Act, anticipated guidance from the U. S. Treasury about implementing the Act, and the potential for additional guidance from the Securities and Exchange Commission or the Financial Accounting Standards Board related to the Act, these estimates may be adjusted during 2018.

Johnson & Johnson will conduct a conference call with investors to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com. 

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

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic and financial market factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in 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, including restructuring plans; the impact of business combinations and divestitures; significant adverse litigation or government action, including related to product liability claims and allegations concerning opioid marketing practices; 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; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. 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 1, 2017, including under 'Item 1A. Risk Factors,' its most recently filed Quarterly Report on Form 10-Q, including in the section captioned 'Cautionary Note Regarding Forward-Looking Statements,' and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.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
	2017		2016		Total		Operations		Currency		2017		2016		Total		Operations		Currency
Sales to customers by
segment of business
Consumer
U.S.	$   1,379		1,387		(0.6)	%	(0.6)		-		$   5,565		5,420		2.7	%	2.7		-
International	2,161		2,045		5.7		1.2		4.5		8,037		7,887		1.9		0.4		1.5
	3,540		3,432		3.1		0.4		2.7		13,602		13,307		2.2		1.3		0.9
Pharmaceutical
U.S.	5,776		5,002		15.5		15.5		-		21,474		20,125		6.7		6.7		-
International	3,905		3,230		20.9		15.5		5.4		14,782		13,339		10.8		10.1		0.7
	9,681		8,232		17.6		15.5		2.1		36,256		33,464		8.3		8.0		0.3
Medical Devices
U.S.	3,314		3,148		5.3		5.3		-		12,824		12,266		4.5		4.5		-
International	3,660		3,294		11.1		7.5		3.6		13,768		12,853		7.1		6.7		0.4
	6,974		6,442		8.3		6.5		1.8		26,592		25,119		5.9		5.7		0.2
U.S.	10,469		9,537		9.8		9.8		-		39,863		37,811		5.4		5.4		-
International	9,726		8,569		13.5		9.0		4.5		36,587		34,079		7.4		6.6		0.8
Worldwide	$ 20,195		18,106		11.5	%	9.4		2.1		$ 76,450		71,890		6.3	%	6.0		0.3

 

 

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER										TWELVE MONTHS
					Percent Change										Percent Change
	2017		2016		Total		Operations		Currency		2017		2016		Total		Operations		Currency
Sales to customers by
geographic area
U.S.	$ 10,469		9,537		9.8	%	9.8		-		$ 39,863		37,811		5.4	%	5.4		-
Europe	4,728		4,001		18.2		10.1		8.1		17,126		15,770		8.6		7.2		1.4
Western Hemisphere excluding U.S.	1,519		1,465		3.7		1.8		1.9		6,041		5,734		5.4		2.8		2.6
Asia-Pacific, Africa	3,479		3,103		12.1		11.1		1.0		13,420		12,575		6.7		7.5		(0.8)
International	9,726		8,569		13.5		9.0		4.5		36,587		34,079		7.4		6.6		0.8
Worldwide	$ 20,195		18,106		11.5	%	9.4		2.1		$ 76,450		71,890		6.3	%	6.0		0.3

 

 

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	FOURTH QUARTER
	2017				2016				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$  20,195		100.0		$ 18,106		100.0		11.5
Cost of products sold	7,243		35.9		5,534		30.5		30.9
Selling, marketing and administrative expenses	6,025		29.8		5,309		29.3		13.5
Research and development expense	3,635		18.0		2,640		14.6		37.7
In-process research and development	408		2.0		-		-
Interest (income) expense, net	189		0.9		84		0.5
Other (income) expense, net	(9)		0.0		20		0.1
Restructuring	144		0.7		195		1.1
Earnings before provision for taxes on income	2,560		12.7		4,324		23.9		(40.8)
Provision for taxes on income	13,273		65.7		510		2.8
Net earnings/(Loss)	$ (10,713)		(53.0)		$   3,814		21.1		(380.9)
Net earnings/(Loss) per share (Basic/Diluted)*	$     (3.99)				$     1.38				(389.1)
Average shares outstanding (Basic/Diluted)*	2,684.9				2,764.5
Effective tax rate	518.5	%			11.8	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$    5,251		26.0		$   5,103		28.2		2.9
Net earnings	$    4,777		23.7		$   4,361		24.1		9.5
Net earnings per share (Diluted)	$      1.74				$     1.58				10.1
Average shares outstanding (Diluted)**	2,740.7				2,764.5
Effective tax rate	9.0	%			14.5	%
*Basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive.
**Difference of 55.8 shares due to anti-dilutive impact on net loss position.
(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
	2017				2016				Percent
			Percent				Percent		Increase
	Amount		to Sales		Amount		to Sales		(Decrease)
Sales to customers	$ 76,450		100.0		$ 71,890		100.0		6.3
Cost of products sold	25,354		33.2		21,685		30.2		16.9
Selling, marketing and administrative expenses	21,420		28.0		19,945		27.7		7.4
Research and development expense	10,554		13.8		9,095		12.7		16.0
In-process research and development	408		0.6		29		0.0
Interest (income) expense, net	549		0.7		358		0.5
Other (income) expense, net	183		0.2		484		0.7
Restructuring	309		0.4		491		0.7
Earnings before provision for taxes on income	17,673		23.1		19,803		27.5		(10.8)
Provision for taxes on income	16,373		21.4		3,263		4.5		401.8
Net earnings	$   1,300		1.7		$ 16,540		23.0		(92.1)
Net earnings per share (Diluted)	$     0.47				$     5.93				(92.1)
Average shares outstanding (Diluted)	2,745.3				2,788.9
Effective tax rate	92.6	%			16.5	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$ 24,212		31.7		$ 22,759		31.7		6.4
Net earnings	$ 20,040		26.2		$ 18,764		26.1		6.8
Net earnings per share (Diluted)	$     7.30				$     6.73				8.5
Effective tax rate	17.2	%			17.6	%
(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)		2017		2016		(Decr.)			2017		2016		(Decr.)
Earnings before provision for taxes on income - as reported		$    2,560		4,324		(40.8)	%		$ 17,673		19,803		(10.8)	%
Intangible asset amortization expense		1,077		344					2,963		1,271
Litigation expense, net		645		96					1,256		817
Actelion acquisition related cost		217		-					797		-
Restructuring/Other (1)		284		298					760		685
In-process research and development		408		-					408		29
Diabetes asset impairment		35		-					215		-
AMO acquisition related cost		25		-					140		-
DePuy ASR™ Hip program		-		9					-		9
Other		-		32					-		145
Earnings before provision for taxes on income - as adjusted		$    5,251		5,103		2.9	%		$ 24,212		22,759		6.4	%
Net Earnings/(Loss) - as reported		$ (10,713)		3,814		(380.9)	%		$   1,300		16,540		(92.1)	%
Impact of tax legislation		13,556		-					13,556		-
Intangible asset amortization expense		926		252					2,481		931
Litigation expense, net		506		80					955		675
Actelion acquisition related cost		313		-					767		-
Restructuring/Other		237		251					595		544
In-process research and development		266		-					266		23
Diabetes asset impairment		(116)		-					4		-
AMO acquisition related cost		(198)		-					116		-
DePuy ASR™ Hip program		-		7					-		7
Other		-		(43)					-		44
Net Earnings - as adjusted		$    4,777		4,361		9.5	%		$ 20,040		18,764		6.8	%
Diluted Net Earnings/(Loss) per share - as reported		$     (3.99)		1.38		(389.1)	%		$     0.47		5.93		(92.1)	%
Dilutive impact of shares excluded due to net loss position		0.08		-					-		-
Impact of tax legislation		4.94		-					4.94		-
Intangible asset amortization expense		0.34		0.09					0.90		0.33
Litigation expense, net		0.19		0.03					0.35		0.24
Actelion acquisition related cost		0.11		-					0.28		-
Restructuring/Other		0.08		0.09					0.22		0.20
In-process research and development		0.10		-					0.10		0.01
Diabetes asset impairment		(0.04)		-					-		-
AMO acquisition related cost		(0.07)		-					0.04		-
DePuy ASR™ Hip program		-		-					-		-
Other		-		(0.01)					-		0.02
Diluted Net Earnings per share - as adjusted		$      1.74		1.58		10.1	%		$     7.30		6.73		8.5	%
Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates				1.59							6.78
Impact of currency at 2016 foreign currency exchange rates		(0.07)		(0.01)					(0.06)		(0.05)
Operational Diluted Net Earnings per share - as adjusted at 2016 foreign currency exchange rates		$      1.67		1.58		5.7	%		$     7.24		6.73		7.6	%
(1) Includes $42M recorded in cost of products sold and $98M recorded in other (income) expense for the fourth quarter 2017, and $18M recorded in cost of products sold
and $85M recorded in other (income) expense for the fourth quarter 2016.
Includes $88M recorded in cost of products sold and $363M recorded in other (income) expense for twelve months YTD 2017, and $45M recorded in cost of products sold
and $149M recorded in other (income) expense for twelve months YTD 2016.

 

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions and Divestitures
FOURTH QUARTER 2017 ACTUAL vs. 2016 ACTUAL
Segments
		Consumer		Pharmaceutical		Medical Devices		Total
		Operational % (1)
WW As Reported:		0.4%		15.5%		6.5%		9.4%
U.S.		(0.6)%		15.5%		5.3%		9.8%
International		1.2%		15.5%		7.5%		9.0%
Vision Care
Abbott Medical Optics						(5.4)		(1.9)
U.S.						(4.9)		(1.7)
International						(5.8)		(2.2)
Pulmonary Hypertension
Actelion				(7.4)				(3.4)
U.S.				(7.3)				(3.8)
International				(7.6)				(2.8)
Cardiovascular / Metabolism / Other
Actelion				(0.5)				(0.2)
U.S.				(0.3)				(0.2)
International				(0.7)				(0.3)
Spine & Other						1.2		0.5
Codman Neuroscience						0.8		0.2
U.S.						1.6		0.6
International
All Other Acquisitions and Divestitures		(0.2)				(0.3)		(0.2)
U.S.		0.0				(0.9)		(0.2)
International		(0.5)				0.3		0.0
WW Ops excluding Acquisitions and Divestitures		0.2%		7.6%		2.0%		4.2%
U.S.		(0.6)%		7.9%		0.3%		4.1%
International		0.7%		7.2%		3.6%		4.3%
(1)Operational growth excludes the effect of translational currency

 

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions and Divestitures
TWELVE MONTHS 2017 ACTUAL vs. 2016 ACTUAL
Segments
		Consumer		Pharmaceutical		Medical Devices		Total
		Operational % (1)
WW As Reported:		1.3%		8.0%		5.7%		6.0%
U.S.		2.7%		6.7%		4.5%		5.4%
International		0.4%		10.1%		6.7%		6.6%
Beauty
Vogue		(1.5)						(0.3)
U.S.		(3.1)						(0.4)
International		(0.4)						(0.1)
Other Neuroscience
Controlled Substance Raw Material and API Business				0.4				0.2
U.S.				0.5				0.2
International				0.2				0.1
Diagnostics
Ortho-Clinical Diagnostics						0.2		0.0
U.S.						0.0		0.0
International						0.5		0.1
Beauty
Dr. Ci: Labo		(0.3)						(0.1)
U.S.		0.0						0.0
International		(0.6)						(0.1)
Vision Care
Abbott Medical Optics						(4.5)		(1.5)
U.S.						(4.0)		(1.3)
International						(4.9)		(1.8)
Pulmonary Hypertension
Actelion				(4.0)				(1.9)
U.S.				(3.8)				(2.0)
International				(4.2)				(1.7)
Cardiovascular / Metabolism / Other
Actelion				(0.2)				(0.1)
U.S.				(0.3)				(0.1)
International				(0.3)				(0.1)
Spine & Other
Codman Neuroscience						0.3		0.1
U.S.						0.2		0.1
International						0.5		0.2
All Other Acquisitions and Divestitures		0.0				(0.2)		0.0
U.S.		(0.3)				(0.7)		(0.3)
International		0.3				0.2		0.1
WW Ops excluding Acquisitions and Divestitures		(0.5)%		4.2%		1.5%		2.4%
U.S.		(0.7)%		3.1%		0.0%		1.6%
International		(0.3)%		5.8%		3.0%		3.3%
(1)Operational growth excludes the effect of translational currency

 

 

		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2017		2016	Reported	Operational (1)	Currency			2017		2016	Reported	Operational (1)	Currency
CONSUMER SEGMENT (2)
BABY CARE
US		$           123		$               123	0.0%	0.0%	-			$                  449		$                  488	-8.0%	-8.0%	-
Intl		367		370	-0.8%	-3.2%	2.4%			1,467		1,513	-3.0%	-3.6%	0.6%
WW		490		493	-0.6%	-2.4%	1.8%			1,916		2,001	-4.2%	-4.7%	0.5%
BEAUTY
US		596		580	2.8%	2.8%	-			2,335		2,135	9.4%	9.4%	-
Intl		514		483	6.4%	2.0%	4.4%			1,865		1,762	5.8%	4.5%	1.3%
WW		1,110		1,063	4.4%	2.4%	2.0%			4,200		3,897	7.8%	7.2%	0.6%
ORAL CARE
US		156		163	-4.3%	-4.3%	-			616		648	-4.9%	-4.9%	-
Intl		237		234	1.3%	-2.6%	3.9%			915		920	-0.5%	-1.8%	1.3%
WW		393		397	-1.0%	-3.3%	2.3%			1,531		1,568	-2.4%	-3.2%	0.8%
OTC
US		406		418	-2.9%	-2.9%	-			1,716		1,675	2.4%	2.4%	-
Intl		699		621	12.6%	6.3%	6.3%			2,410		2,302	4.7%	2.7%	2.0%
WW		1,105		1,039	6.4%	2.6%	3.8%			4,126		3,977	3.7%	2.6%	1.1%
WOMEN'S HEALTH
US		3		3	0.0%	0.0%	-			12		19	-36.8%	-36.8%	-
Intl		259		261	-0.8%	-4.5%	3.7%			1,038		1,048	-1.0%	-3.1%	2.1%
WW		262		264	-0.8%	-4.4%	3.6%			1,050		1,067	-1.6%	-3.7%	2.1%
WOUND CARE / OTHER
US		95		100	-5.0%	-5.0%	-			437		455	-4.0%	-4.0%	-
Intl		85		76	11.8%	6.1%	5.7%			342		342	0.0%	-1.7%	1.7%
WW		180		176	2.3%	-0.1%	2.4%			779		797	-2.3%	-3.0%	0.7%
TOTAL CONSUMER
US		1,379		1,387	-0.6%	-0.6%	-			5,565		5,420	2.7%	2.7%	-
Intl		2,161		2,045	5.7%	1.2%	4.5%			8,037		7,887	1.9%	0.4%	1.5%
WW		$        3,540		$            3,432	3.1%	0.4%	2.7%			$             13,602		$             13,307	2.2%	1.3%	0.9%
See footnotes at end of schedule
		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2017		2016	Reported	Operational (1)	Currency			2017		2016	Reported	Operational (1)	Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US		$        2,227		$            2,157	3.2%	3.2%	-			$               8,871		$               8,846	0.3%	0.3%	-
Intl		859		779	10.3%	5.2%	5.1%			3,373		3,122	8.0%	6.7%	1.3%
WW		3,086		2,936	5.1%	3.7%	1.4%			12,244		11,968	2.3%	2.0%	0.3%
REMICADE
US		1,073		1,173	-8.5%	-8.5%	-			4,525		4,842	-6.5%	-6.5%	-
US Exports (4)		115		109	5.5%	5.5%	-			563		782	-28.0%	-28.0%	-
Intl		278		342	-18.7%	-22.6%	3.9%			1,227		1,342	-8.6%	-10.2%	1.6%
WW		1,466		1,624	-9.7%	-10.5%	0.8%			6,315		6,966	-9.3%	-9.6%	0.3%
SIMPONI / SIMPONI ARIA
US		253		243	4.1%	4.1%	-			954		959	-0.5%	-0.5%	-
Intl		237		183	29.5%	25.1%	4.4%			879		786	11.8%	10.9%	0.9%
WW		490		426	15.0%	13.1%	1.9%			1,833		1,745	5.0%	4.6%	0.4%
STELARA
US		740		632	17.1%	17.1%	-			2,767		2,263	22.3%	22.3%	-
Intl		341		247	38.1%	30.6%	7.5%			1,244		969	28.4%	27.2%	1.2%
WW		1,081		879	23.0%	20.9%	2.1%			4,011		3,232	24.1%	23.7%	0.4%
OTHER IMMUNOLOGY
US		46		-	*	*	-			62		-	*	*	-
Intl		3		7	-57.1%	-57.1%	0.0%			23		25	-8.0%	-9.3%	1.3%
WW		49		7	*	*	0.0%			85		25	*	*	1.3%
INFECTIOUS DISEASES
US		338		354	-4.5%	-4.5%	-			1,358		1,461	-7.0%	-7.0%	-
Intl		462		407	13.5%	5.9%	7.6%			1,796		1,747	2.8%	1.0%	1.8%
WW		800		761	5.1%	1.0%	4.1%			3,154		3,208	-1.7%	-2.7%	1.0%
EDURANT / rilpivirine
US		14		14	0.0%	0.0%	-			58		52	11.5%	11.5%	-
Intl		178		151	17.9%	8.9%	9.0%			656		521	25.9%	23.1%	2.8%
WW		192		165	16.4%	8.2%	8.2%			714		573	24.6%	22.1%	2.5%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		285		283	0.7%	0.7%	-			1,109		1,143	-3.0%	-3.0%	-
Intl		185		164	12.8%	5.5%	7.3%			712		708	0.6%	-0.8%	1.4%
WW		470		447	5.1%	2.4%	2.7%			1,821		1,851	-1.6%	-2.1%	0.5%
OTHER INFECTIOUS DISEASES
US		39		57	-31.6%	-31.6%	-			191		266	-28.2%	-28.2%	-
Intl		99		92	7.6%	1.5%	6.1%			428		518	-17.4%	-18.7%	1.3%
WW		138		149	-7.4%	-11.1%	3.7%			619		784	-21.0%	-21.9%	0.9%
		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
		2017		2016	Reported	Operational (1)	Currency			2017		2016	Reported	Operational (1)	Currency
NEUROSCIENCE
US		699		631	10.8%	10.8%	-			2,630		2,628	0.1%	0.1%	-
Intl		825		839	-1.7%	-5.3%	3.6%			3,356		3,457	-2.9%	-3.0%	0.1%
WW		1,524		1,470	3.7%	1.6%	2.1%			5,986		6,085	-1.6%	-1.6%	0.0%
CONCERTA / METHYLPHENIDATE
US		100		103	-2.9%	-2.9%	-			384		468	-17.9%	-17.9%	-
Intl		103		101	2.0%	-0.6%	2.6%			407		395	3.0%	2.8%	0.2%
WW		203		204	-0.5%	-1.8%	1.3%			791		863	-8.3%	-8.4%	0.1%
INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA
US		436		360	21.1%	21.1%	-			1,590		1,343	18.4%	18.4%	-
Intl		257		225	14.2%	8.0%	6.2%			979		871	12.4%	11.6%	0.8%
WW		693		585	18.5%	16.1%	2.4%			2,569		2,214	16.0%	15.7%	0.3%
RISPERDAL CONSTA
US		87		92	-5.4%	-5.4%	-			360		381	-5.5%	-5.5%	-
Intl		110		118	-6.8%	-11.5%	4.7%			445		512	-13.1%	-13.4%	0.3%
WW		197		210	-6.2%	-8.8%	2.6%			805		893	-9.9%	-10.1%	0.2%
OTHER NEUROSCIENCE
US		76		76	0.0%	0.0%	-			296		436	-32.1%	-32.1%	-
Intl		355		395	-10.1%	-12.2%	2.1%			1,525		1,679	-9.2%	-8.7%	-0.5%
WW		431		471	-8.5%	-10.2%	1.7%			1,821		2,115	-13.9%	-13.5%	-0.4%
ONCOLOGY
US		891		595	49.7%	49.7%	-			3,098		2,335	32.7%	32.7%	-
Intl		1,148		867	32.4%	26.0%	6.4%			4,160		3,472	19.8%	19.1%	0.7%
WW		2,039		1,462	39.5%	35.7%	3.8%			7,258		5,807	25.0%	24.6%	0.4%
DARZALEX
US		241		151	59.6%	59.6%	-			884		471	87.7%	87.7%	-
Intl		130		49	*	*	*			358		101	*	*	*
WW		371		200	85.5%	82.3%	3.2%			1,242		572	*	*	*
IMBRUVICA
US		219		158	38.6%	38.6%	-			841		613	37.2%	37.2%	-
Intl		303		188	61.2%	52.2%	9.0%			1,052		638	64.9%	63.2%	1.7%
WW		522		346	50.9%	46.0%	4.9%			1,893		1,251	51.3%	50.4%	0.9%
VELCADE
US		-		-	-	-	-			-		-	-	-	-
Intl		271		274	-1.1%	-5.6%	4.5%			1,114		1,224	-9.0%	-8.8%	-0.2%
WW		271		274	-1.1%	-5.6%	4.5%			1,114		1,224	-9.0%	-8.8%	-0.2%
ZYTIGA
US		402		249	61.4%	61.4%	-			1,228		1,089	12.8%	12.8%	-
Intl		353		270	30.7%	25.0%	5.7%			1,277		1,171	9.1%	8.5%	0.6%
WW		755		519	45.5%	42.5%	3.0%			2,505		2,260	10.8%	10.5%	0.3%
OTHER ONCOLOGY
US		29		37	-21.6%	-21.6%	-			145		162	-10.5%	-10.5%	-
Intl		91		86	5.8%	0.5%	5.3%			359		338	6.2%	5.6%	0.6%
WW		120		123	-2.4%	-6.1%	3.7%			504		500	0.8%	0.4%	0.4%
PULMONARY HYPERTENSION(5)
US		365		-	*	*	-			773		-	*	*	-
Intl		245		-	*	*	-			554		-	*	*	-
WW		610		-	*	*	-			1,327		-	*	*	-
OPSUMIT				-
US		146		-	*	*	-			320		-	*	*	-
Intl		123		-	*	*	-			253		-	*	*	-
WW		269		-	*	*	-			573		-	*	*	-
TRACLEER				-
US		76		-	*	*	-			161		-	*	*	-
Intl		91		-	*	*	-			242		-	*	*	-
WW		167		-	*	*	-			403		-	*	*	-
UPTRAVI				-
US		117		-	*	*	-			238		-	*	*	-
Intl		13		-	*	*	-			25		-	*	*	-
WW		130		-	*	*	-			263		-	*	*	-
OTHER(6)				-
US		26		-	*	*	-			54		-	*	*	-
Intl		18		-	*	*	-			34		-	*	*	-
WW		44		-	*	*	-			88		-	*	*	-
CARDIOVASCULAR / METABOLISM / OTHER
US		1,256		1,265	-0.7%	-0.7%	-			4,744		4,855	-2.3%	-2.3%	-
Intl		366		338	8.3%	3.2%	5.1%			1,543		1,541	0.1%	0.5%	-0.4%
WW		1,622		1,603	1.2%	0.1%	1.1%			6,287		6,396	-1.7%	-1.6%	-0.1%
XARELTO
US		710		598	18.7%	18.7%	-			2,500		2,288	9.3%	9.3%	-
Intl		-		-	-	-	-			-		-	-	-	-
WW		710		598	18.7%	18.7%	-			2,500		2,288	9.3%	9.3%	-
INVOKANA / INVOKAMET
US		221		334	-33.8%	-33.8%	-			944		1,273	-25.8%	-25.8%	-
Intl		46		37	24.3%	16.4%	7.9%			167		134	24.6%	23.7%	0.9%
WW		267		371	-28.0%	-28.8%	0.8%			1,111		1,407	-21.0%	-21.1%	0.1%
PROCRIT / EPREX
US		164		186	-11.8%	-11.8%	-			675		767	-12.0%	-12.0%	-
Intl		68		73	-6.8%	-12.1%	5.3%			297		338	-12.1%	-13.0%	0.9%
WW		232		259	-10.4%	-11.9%	1.5%			972		1,105	-12.0%	-12.3%	0.3%
OTHER(6)
US		161		147	9.5%	9.5%	-			625		527	18.6%	18.6%	-
Intl		252		228	10.5%	5.9%	4.6%			1,079		1,069	0.9%	1.9%	-1.0%
WW		413		375	10.1%	7.3%	2.8%			1,704		1,596	6.8%	7.5%	-0.7%
TOTAL PHARMACEUTICAL
US		5,776		5,002	15.5%	15.5%	-			21,474		20,125	6.7%	6.7%	-
Intl		3,905		3,230	20.9%	15.5%	5.4%			14,782		13,339	10.8%	10.1%	0.7%
WW		$        9,681		$            8,232	17.6%	15.5%	2.1%			$             36,256		$             33,464	8.3%	8.0%	0.3%
See footnotes at end of schedule
		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER								TWELVE MONTHS
					% Change								% Change
MEDICAL DEVICES SEGMENT (2)		2017		2016	Reported	Operational (1)	Currency			2017		2016	Reported	Operational (1)	Currency
CARDIOVASCULAR
US		$           286		$               247	15.8%	15.8%	-			$               1,071		$                  948	13.0%	13.0%	-
Intl		282		238	18.5%	15.6%	2.9%			1,025		901	13.8%	14.0%	-0.2%
WW		568		485	17.1%	15.7%	1.4%			2,096		1,849	13.4%	13.5%	-0.1%
DIABETES CARE
US		130		191	-31.9%	-31.9%	-			612		739	-17.2%	-17.2%	-
Intl		260		271	-4.1%	-9.3%	5.2%			1,003		1,050	-4.5%	-5.8%	1.3%
WW		390		462	-15.6%	-18.7%	3.1%			1,615		1,789	-9.7%	-10.5%	0.8%
DIAGNOSTICS
US		-		-	-	-	-			-		-	-	-	-
Intl		-		-	-	-	-			1		66	*	*	*
WW		-		-	-	-	-			1		66	*	*	*
ORTHOPAEDICS
US		1,389		1,422	-2.3%	-2.3%	-			5,481		5,521	-0.7%	-0.7%	-
Intl		950		965	-1.6%	-5.8%	4.2%			3,777		3,813	-0.9%	-1.6%	0.7%
WW		2,339		2,387	-2.0%	-3.7%	1.7%			9,258		9,334	-0.8%	-1.1%	0.3%
HIPS
US		215		208	3.4%	3.4%	-			827		798	3.6%	3.6%	-
Intl		149		142	4.9%	0.4%	4.5%			567		563	0.7%	0.0%	0.7%
WW		364		350	4.0%	2.2%	1.8%			1,394		1,361	2.4%	2.1%	0.3%
KNEES
US		246		247	-0.4%	-0.4%	-			948		943	0.5%	0.5%	-
Intl		151		148	2.0%	-2.5%	4.5%			575		581	-1.0%	-1.6%	0.6%
WW		397		395	0.5%	-1.2%	1.7%			1,523		1,524	-0.1%	-0.3%	0.2%
TRAUMA
US		397		394	0.8%	0.8%	-			1,576		1,545	2.0%	2.0%	-
Intl		272		260	4.6%	0.4%	4.2%			1,040		1,024	1.6%	0.7%	0.9%
WW		669		654	2.3%	0.6%	1.7%			2,616		2,569	1.8%	1.5%	0.3%
SPINE & OTHER
US		531		573	-7.3%	-7.3%	-			2,130		2,235	-4.7%	-4.7%	-
Intl		378		415	-8.9%	-13.0%	4.1%			1,595		1,645	-3.0%	-3.6%	0.6%
WW		909		988	-8.0%	-9.7%	1.7%			3,725		3,880	-4.0%	-4.2%	0.2%
SURGERY
US		1,076		1,023	5.2%	5.2%	-			4,085		4,026	1.5%	1.5%	-
Intl		1,482		1,364	8.7%	5.4%	3.3%			5,474		5,270	3.9%	3.5%	0.4%
WW		2,558		2,387	7.2%	5.3%	1.9%			9,559		9,296	2.8%	2.6%	0.2%
ADVANCED
US		430		393	9.4%	9.4%	-			1,620		1,524	6.3%	6.3%	-
Intl		593		515	15.1%	11.7%	3.4%			2,136		1,993	7.2%	7.0%	0.2%
WW		1,023		908	12.7%	10.8%	1.9%			3,756		3,517	6.8%	6.7%	0.1%
GENERAL
US		452		415	8.9%	8.9%	-			1,728		1,669	3.5%	3.5%	-
Intl		718		687	4.5%	1.0%	3.5%			2,735		2,693	1.6%	1.2%	0.4%
WW		1,170		1,102	6.2%	4.0%	2.2%			4,463		4,362	2.3%	2.0%	0.3%
SPECIALTY
US		194		215	-9.8%	-9.8%	-			737		833	-11.5%	-11.5%	-
Intl		171		162	5.6%	3.1%	2.5%			603		584	3.3%	2.4%	0.9%
WW		365		377	-3.2%	-4.3%	1.1%			1,340		1,417	-5.4%	-5.8%	0.4%
VISION CARE
US		433		265	63.4%	63.4%	-			1,575		1,032	52.6%	52.6%	-
Intl		686		456	50.4%	48.2%	2.2%			2,488		1,753	41.9%	42.0%	-0.1%
WW		1,119		721	55.2%	53.8%	1.4%			4,063		2,785	45.9%	46.0%	-0.1%
CONTACT LENSES / OTHER
US		290		265	9.4%	9.4%	-			1,122		1,032	8.7%	8.7%	-
Intl		510		456	11.8%	9.6%	2.2%			1,914		1,753	9.2%	9.3%	-0.1%
WW		800		721	11.0%	9.6%	1.4%			3,036		2,785	9.0%	9.1%	-0.1%
SURGICAL
US		143		-	*	*	-			453		-	*	*	-
Intl		176		-	*	*	-			574		-	*	*	-
WW		319		-	*	*	-			1,027		-	*	*	-
TOTAL MEDICAL DEVICES
US		3,314		3,148	5.3%	5.3%	-			12,824		12,266	4.5%	4.5%	-
Intl		3,660		3,294	11.1%	7.5%	3.6%			13,768		12,853	7.1%	6.7%	0.4%
WW		$        6,974		6,442	8.3%	6.5%	1.8%			$             26,592		$             25,119	5.9%	5.7%	0.2%
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Prior year amounts have been reclassified to conform to current year product disclosure
(4) Reported as U.S. sales
(5) Actelion acquisition completed June 16, 2017
(6) All non-PAH Actelion products were reclassified to Other within the Cardiovascular/Metabolisim/Other therapeutic area. See supplementary schedule.

 

 

Pharmaceutical Supplemental Schedule
Prior quarter amounts have been reclassified to conform to current quarter product disclosure  ($MM)
	2017
		Q2		Q3
PHARMACEUTICAL SEGMENT(1)
PULMONARY HYPERTENSION
US		37		371
Intl		48		261
WW		85		632
OTHER(2)
US		3		25
Intl		2		14
WW		5		39
CARDIOVASCULAR / METABOLISM / OTHER
US		1,214		1,179
Intl		391		406
WW		1,605		1,585
OTHER(3)
US		142		156
Intl		271		291
WW		413		447
(1) Unaudited
(2) All non-PAH Actelion products removed; Previously included All Other PAH & Non-PAH products.
(3) Includes Actelion non-PAH products; Previously included in Pulmonary Hypertension Other.

 

 

 

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SOURCE Johnson & Johnson