Ctd---
Condensed Consolidated Statement of Earnings
| |||||||||
(Unaudited; in Millions Except Per Share Figures)
|
FIRST QUARTER
| ||||||||
2016
|
2015
|
Percent
| |||||||
Percent
|
Percent
|
Increase
| |||||||
Amount
|
to Sales
|
Amount
|
to Sales
|
(Decrease)
| |||||
Sales to customers
|
$ 17,482
|
100.0
|
$ 17,374
|
100.0
|
0.6
| ||||
Cost of products sold
|
5,329
|
30.5
|
5,282
|
30.4
|
0.9
| ||||
Selling, marketing and administrative expenses
|
4,688
|
26.8
|
4,847
|
27.9
|
(3.3)
| ||||
Research and development expense
|
2,013
|
11.5
|
1,899
|
10.9
|
6.0
| ||||
Interest (income) expense, net
|
77
|
0.4
|
119
|
0.7
| |||||
Other (income) expense, net
|
(39)
|
(0.2)
|
(348)
|
(2.0)
| |||||
Restructuring
|
120
|
0.7
|
-
|
-
| |||||
Earnings before provision for taxes on income
|
5,294
|
30.3
|
5,575
|
32.1
|
(5.0)
| ||||
Provision for taxes on income
|
1,002
|
5.7
|
1,255
|
7.2
|
(20.2)
| ||||
Net earnings
|
4,292
|
24.6
|
4,320
|
24.9
|
(0.6)
| ||||
Net earnings per share (Diluted)
|
$ 1.54
|
$ 1.53
|
0.7
| ||||||
Average shares outstanding (Diluted)
|
2,795.4
|
2,826.0
| |||||||
Effective tax rate
|
18.9
|
%
|
22.5
|
%
| |||||
Adjusted earnings before provision for taxes and net earnings(1)
| |||||||||
Earnings before provision for taxes on income
|
$ 5,801
|
33.2
|
$ 5,630
|
32.4
|
3.0
| ||||
Net earnings
|
$ 4,689
|
26.8
|
$ 4,418
|
25.4
|
6.1
| ||||
Net earnings per share (Diluted)
|
$ 1.68
|
$ 1.56
|
7.7
| ||||||
Effective tax rate
|
19.2
|
%
|
21.5
|
%
| |||||
(1) See Reconciliation of Non-GAAP Financial Measures.
|
Reconciliation of Non-GAAP Financial Measures
| ||||||
First Quarter
|
% Incr. /
| |||||
(Dollars in Millions Except Per Share Data)
|
2016
|
2015
|
(Decr.)
| |||
Earnings before provision for taxes on income - as reported
|
$ 5,294
|
5,575
|
(5.0)
|
%
| ||
Intangible asset amortization expense
|
282
|
312
| ||||
Restructuring (1)
|
137
|
-
| ||||
Litigation expense/(gain), net
|
66
|
(402)
| ||||
DePuy ASR™Hip program
|
-
|
139
| ||||
Other
|
22
|
6
| ||||
Earnings before provision for taxes on income - as adjusted
|
$ 5,801
|
5,630
|
3.0
|
%
| ||
Net Earnings - as reported
|
$ 4,292
|
4,320
|
(0.6)
|
%
| ||
Intangible asset amortization expense
|
205
|
226
| ||||
Restructuring
|
120
|
-
| ||||
Litigation expense/(gain), net
|
56
|
(253)
| ||||
DePuy ASR™Hip program
|
-
|
122
| ||||
Other
|
16
|
3
| ||||
Net Earnings - as adjusted
|
$ 4,689
|
4,418
|
6.1
|
%
| ||
Diluted Net Earnings per share - as reported
|
$ 1.54
|
1.53
|
0.7
|
%
| ||
Intangible asset amortization expense
|
0.07
|
0.08
| ||||
Restructuring
|
0.04
|
-
| ||||
Litigation expense/(gain), net
|
0.02
|
(0.09)
| ||||
DePuy ASR™Hip program
|
-
|
0.04
| ||||
Other
|
0.01
|
-
| ||||
Diluted Net Earnings per share - as adjusted
|
$ 1.68
|
1.56
|
7.7
|
%
| ||
Operational Diluted Net Earnings per share - as adjusted*
|
$ 1.72
|
1.56
|
10.3
|
%
| ||
* Excludes the effect of translational currency
| ||||||
(1)Includes
|
Reconciliation of Non-GAAP Financial Measure
| ||||||||
Operational Sales Growth Excluding Acquisitions, Divestitures and Hepatitis C Sales (1) (Underlying Sales Growth)
| ||||||||
FIRST QUARTER 2016 ACTUAL vs. 2015 ACTUAL
| ||||||||
Segments
| ||||||||
Consumer
|
Pharmaceutical
|
Medical Devices
|
Total
| |||||
Operational % (2)
| ||||||||
WW As Reported:
|
(0.2)%
|
8.5%
|
0.5%
|
3.9%
| ||||
U.S.
|
(0.1)%
|
12.9%
|
2.2%
|
7.2%
| ||||
International
|
(0.3)%
|
2.6%
|
(1.0)%
|
0.6%
| ||||
Wound Care/Other
| ||||||||
SPLENDA ®
|
2.0
|
0.5
| ||||||
U.S.
|
4.1
|
0.7
| ||||||
International
|
0.7
|
0.2
| ||||||
Cardiovascular
| ||||||||
Cordis
|
2.4
|
0.9
| ||||||
U.S.
|
1.1
|
0.4
| ||||||
International
|
3.5
|
1.3
| ||||||
Other Neuroscience
| ||||||||
NUCYNTA ®
|
0.5
|
0.2
| ||||||
U.S.
|
1.0
|
0.5
| ||||||
International
|
0.0
|
0.0
| ||||||
All Other Acquisitions and Divestitures
|
0.1
|
0.1
|
0.1
| |||||
U.S.
|
0.1
|
0.0
|
0.0
| |||||
International
|
0.1
|
0.3
|
0.1
| |||||
WW Ops excluding Acquisitions and Divestitures
|
1.9%
|
9.0%
|
3.0%
|
5.6%
| ||||
U.S.
|
4.1%
|
13.9%
|
3.3%
|
8.8%
| ||||
International
|
0.5%
|
2.6%
|
2.8%
|
2.2%
| ||||
Hepatitis C
|
3.3
|
1.3
| ||||||
U.S.
|
2.3
|
1.0
| ||||||
International
|
4.5
|
1.6
| ||||||
WW Ops excluding Hepatitis C only
|
11.8%
|
5.2%
| ||||||
U.S.
|
15.2%
|
8.2%
| ||||||
International
|
7.1%
|
2.2%
| ||||||
WW Ops excluding Acquisitions, Divestitures and Hepatitis C
|
1.9%
|
12.3%
|
3.0%
|
6.9%
| ||||
U.S.
|
4.1%
|
16.2%
|
3.3%
|
9.8%
| ||||
International
|
0.5%
|
7.1%
|
2.8%
|
3.8%
| ||||
(1)Hepatitis C products include OLYSIO ® /SOVRIAD ® and INCIVO ®
| ||||||||
(2)Operational growth excludes the effect of translational currency
|
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
CONSUMER SEGMENT (2)
| ||||||||
US
|
$ 95
|
111
|
-14.4%
|
-14.4%
|
-
| |||
Intl
|
356
|
400
|
-11.0%
|
0.1%
|
-11.1%
| |||
WW
|
451
|
511
|
-11.7%
|
-3.0%
|
-8.7%
| |||
US
|
170
|
158
|
7.6%
|
7.6%
|
-
| |||
Intl
|
215
|
245
|
-12.2%
|
-2.9%
|
-9.3%
| |||
WW
|
385
|
403
|
-4.5%
|
1.1%
|
-5.6%
| |||
OTC
| ||||||||
US
|
461
|
405
|
13.8%
|
13.8%
|
-
| |||
Intl
|
558
|
588
|
-5.1%
|
2.8%
|
-7.9%
| |||
WW
|
1,019
|
993
|
2.6%
|
7.3%
|
-4.7%
| |||
US
|
488
|
492
|
-0.8%
|
-0.8%
|
-
| |||
Intl
|
374
|
411
|
-9.0%
|
-0.7%
|
-8.3%
| |||
WW
|
862
|
903
|
-4.5%
|
-0.7%
|
-3.8%
| |||
WOMEN'S HEALTH
| ||||||||
US
|
6
|
6
|
0.0%
|
0.0%
|
-
| |||
Intl
|
245
|
281
|
-12.8%
|
-0.9%
|
-11.9%
| |||
WW
|
251
|
287
|
-12.5%
|
-0.9%
|
-11.6%
| |||
WOUND CARE / OTHER
| ||||||||
US
|
138
|
187
|
-26.2%
|
-26.2%
|
-
| |||
Intl
|
89
|
106
|
-16.0%
|
-8.4%
|
-7.6%
| |||
WW
|
227
|
293
|
-22.5%
|
-19.7%
|
-2.8%
| |||
TOTAL CONSUMER
| ||||||||
US
|
1,358
|
1,359
|
-0.1%
|
-0.1%
|
-
| |||
Intl
|
1,837
|
2,031
|
-9.6%
|
-0.3%
|
-9.3%
| |||
WW
|
$ 3,195
|
3,390
|
-5.8%
|
-0.2%
|
-5.6%
| |||
See footnotes at end of schedule
| ||||||||
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
PHARMACEUTICAL SEGMENT (2)
| ||||||||
IMMUNOLOGY
| ||||||||
US
|
$ 2,171
|
1,755
|
23.7%
|
23.7%
|
-
| |||
Intl
|
739
|
708
|
4.4%
|
12.8%
|
-8.4%
| |||
WW
|
2,910
|
2,463
|
18.1%
|
20.5%
|
-2.4%
| |||
REMICADE
| ||||||||
US
|
1,211
|
1,055
|
14.8%
|
14.8%
|
-
| |||
US Exports (3)
|
233
|
181
|
28.7%
|
28.7%
|
-
| |||
Intl
|
335
|
364
|
-8.0%
|
1.8%
|
-9.8%
| |||
WW
|
1,779
|
1,600
|
11.2%
|
13.4%
|
-2.2%
| |||
SIMPONI / SIMPONI ARIA
| ||||||||
US
|
216
|
155
|
39.4%
|
39.4%
|
-
| |||
Intl
|
174
|
145
|
20.0%
|
27.6%
|
-7.6%
| |||
WW
|
390
|
300
|
30.0%
|
33.7%
|
-3.7%
| |||
STELARA
| ||||||||
US
|
511
|
364
|
40.4%
|
40.4%
|
-
| |||
Intl
|
224
|
185
|
21.1%
|
27.3%
|
-6.2%
| |||
WW
|
735
|
549
|
33.9%
|
36.0%
|
-2.1%
| |||
OTHER IMMUNOLOGY
| ||||||||
US
|
-
|
-
|
-
|
-
|
-
| |||
Intl
|
6
|
14
|
-57.1%
|
-48.4%
|
-8.7%
| |||
WW
|
6
|
14
|
-57.1%
|
-48.4%
|
-8.7%
| |||
INFECTIOUS DISEASES
| ||||||||
US
|
358
|
412
|
-13.1%
|
-13.1%
|
-
| |||
Intl
|
418
|
563
|
-25.8%
|
-22.1%
|
-3.7%
| |||
WW
|
776
|
975
|
-20.4%
|
-18.2%
|
-2.2%
| |||
EDURANT
| ||||||||
US
|
11
|
9
|
22.2%
|
22.2%
|
-
| |||
Intl
|
108
|
82
|
31.7%
|
35.3%
|
-3.6%
| |||
WW
|
119
|
91
|
30.8%
|
34.1%
|
-3.3%
| |||
OLYSIO / SOVRIAD
| ||||||||
US
|
16
|
98
|
-83.7%
|
-83.7%
|
-
| |||
Intl
|
16
|
136
|
-88.2%
|
-87.1%
|
-1.1%
| |||
WW
|
32
|
234
|
-86.3%
|
-85.7%
|
-0.6%
| |||
PREZISTA / PREZCOBIX / REZOLSTA
| ||||||||
US
|
277
|
234
|
18.4%
|
18.4%
|
-
| |||
Intl
|
175
|
193
|
-9.3%
|
-4.6%
|
-4.7%
| |||
WW
|
452
|
427
|
5.9%
|
8.0%
|
-2.1%
| |||
OTHER INFECTIOUS DISEASES
| ||||||||
US
|
54
|
71
|
-23.9%
|
-23.9%
|
-
| |||
Intl
|
119
|
152
|
-21.7%
|
-16.7%
|
-5.0%
| |||
WW
|
173
|
223
|
-22.4%
|
-19.0%
|
-3.4%
| |||
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
NEUROSCIENCE
| ||||||||
US
|
680
|
750
|
-9.3%
|
-9.3%
|
-
| |||
Intl
|
869
|
868
|
0.1%
|
5.4%
|
-5.3%
| |||
WW
|
1,549
|
1,618
|
-4.3%
|
-1.4%
|
-2.9%
| |||
CONCERTA / METHYLPHENIDATE
| ||||||||
US
|
134
|
126
|
6.3%
|
6.3%
|
-
| |||
Intl
|
97
|
98
|
-1.0%
|
6.4%
|
-7.4%
| |||
WW
|
231
|
224
|
3.1%
|
6.3%
|
-3.2%
| |||
INVEGA / PALIPERIDONE
| ||||||||
US
|
24
|
94
|
-74.5%
|
-74.5%
|
-
| |||
Intl
|
62
|
61
|
1.6%
|
5.3%
|
-3.7%
| |||
WW
|
86
|
155
|
-44.5%
|
-43.0%
|
-1.5%
| |||
INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA | ||||||||
US
|
305
|
228
|
33.8%
|
33.8%
|
-
| |||
Intl
|
208
|
183
|
13.7%
|
19.3%
|
-5.6%
| |||
WW
|
513
|
411
|
24.8%
|
27.3%
|
-2.5%
| |||
RISPERDAL CONSTA
| ||||||||
US
|
95
|
104
|
-8.7%
|
-8.7%
|
-
| |||
Intl
|
136
|
150
|
-9.3%
|
-4.9%
|
-4.4%
| |||
WW
|
231
|
254
|
-9.1%
|
-6.5%
|
-2.6%
| |||
OTHER NEUROSCIENCE
| ||||||||
US
|
122
|
198
|
-38.4%
|
-38.4%
|
-
| |||
Intl
|
366
|
376
|
-2.7%
|
2.6%
|
-5.3%
| |||
WW
|
488
|
574
|
-15.0%
|
-11.5%
|
-3.5%
| |||
ONCOLOGY
| ||||||||
US
|
549
|
334
|
64.4%
|
64.4%
|
-
| |||
Intl
|
805
|
774
|
4.0%
|
9.8%
|
-5.8%
| |||
WW
|
1,354
|
1,108
|
22.2%
|
26.3%
|
-4.1%
| |||
IMBRUVICA
| ||||||||
US
|
132
|
66
|
100.0%
|
100.0%
|
-
| |||
Intl
|
129
|
50
|
*
|
*
|
**
| |||
WW
|
261
|
116
|
*
|
*
|
**
| |||
VELCADE
| ||||||||
US
|
-
|
-
|
-
|
-
|
-
| |||
Intl
|
304
|
339
|
-10.3%
|
-5.4%
|
-4.9%
| |||
WW
|
304
|
339
|
-10.3%
|
-5.4%
|
-4.9%
| |||
ZYTIGA
| ||||||||
US
|
272
|
253
|
7.5%
|
7.5%
|
-
| |||
Intl
|
286
|
303
|
-5.6%
|
-0.1%
|
-5.5%
| |||
WW
|
558
|
556
|
0.4%
|
3.4%
|
-3.0%
| |||
OTHER ONCOLOGY
| ||||||||
US
|
145
|
15
|
*
|
*
|
-
| |||
Intl
|
86
|
82
|
4.9%
|
11.2%
|
-6.3%
| |||
WW
|
231
|
97
|
*
|
*
|
**
| |||
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
CARDIOVASCULAR / METABOLISM / OTHER
| ||||||||
US
|
1,179
|
1,120
|
5.3%
|
5.3%
|
-
| |||
Intl
|
410
|
442
|
-7.2%
|
-0.4%
|
-6.8%
| |||
WW
|
1,589
|
1,562
|
1.7%
|
3.6%
|
-1.9%
| |||
XARELTO
| ||||||||
US
|
567
|
441
|
28.6%
|
28.6%
|
-
| |||
Intl
|
-
|
-
|
-
|
-
|
-
| |||
WW
|
567
|
441
|
28.6%
|
28.6%
|
-
| |||
INVOKANA / INVOKAMET
| ||||||||
US
|
297
|
266
|
11.7%
|
11.7%
|
-
| |||
Intl
|
28
|
12
|
*
|
*
|
**
| |||
WW
|
325
|
278
|
16.9%
|
17.8%
|
-0.9%
| |||
PROCRIT / EPREX
| ||||||||
US
|
183
|
163
|
12.3%
|
12.3%
|
-
| |||
Intl
|
91
|
106
|
-14.2%
|
-8.7%
|
-5.5%
| |||
WW
|
274
|
269
|
1.9%
|
4.1%
|
-2.2%
| |||
OTHER
| ||||||||
US
|
132
|
250
|
-47.2%
|
-47.2%
|
-
| |||
Intl
|
291
|
324
|
-10.2%
|
-3.5%
|
-6.7%
| |||
WW
|
423
|
574
|
-26.3%
|
-22.5%
|
-3.8%
| |||
TOTAL PHARMACEUTICAL
| ||||||||
US
|
4,937
|
4,371
|
12.9%
|
12.9%
|
-
| |||
Intl
|
3,241
|
3,355
|
-3.4%
|
2.6%
|
-6.0%
| |||
WW
|
$ 8,178
|
7,726
|
5.9%
|
8.5%
|
-2.6%
| |||
See footnotes at end of schedule
| ||||||||
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
MEDICAL DEVICES (2) (4)
| ||||||||
CARDIOVASCULAR
| ||||||||
US
|
$ 231
|
228
|
1.3%
|
1.3%
|
-
| |||
Intl
|
212
|
301
|
-29.6%
|
-26.3%
|
-3.3%
| |||
WW
|
443
|
529
|
-16.3%
|
-14.4%
|
-1.9%
| |||
DIABETES CARE
| ||||||||
US
|
180
|
212
|
-15.1%
|
-15.1%
|
-
| |||
Intl
|
249
|
272
|
-8.5%
|
-2.8%
|
-5.7%
| |||
WW
|
429
|
484
|
-11.4%
|
-8.2%
|
-3.2%
| |||
DIAGNOSTICS
| ||||||||
US
|
-
|
-
|
-
|
-
|
-
| |||
Intl
|
28
|
30
|
**
|
**
|
**
| |||
WW
|
28
|
30
|
**
|
**
|
**
| |||
ORTHOPAEDICS
| ||||||||
US
|
1,392
|
1,309
|
6.3%
|
6.3%
|
-
| |||
Intl
|
949
|
1,019
|
-6.9%
|
-1.4%
|
-5.5%
| |||
WW
|
2,341
|
2,328
|
0.6%
|
3.0%
|
-2.4%
| |||
HIPS
| ||||||||
US
|
203
|
190
|
6.8%
|
6.8%
|
-
| |||
Intl
|
139
|
143
|
-2.8%
|
3.4%
|
-6.2%
| |||
WW
|
342
|
333
|
2.7%
|
5.4%
|
-2.7%
| |||
KNEES
| ||||||||
US
|
244
|
226
|
8.0%
|
8.0%
|
-
| |||
Intl
|
145
|
150
|
-3.3%
|
2.1%
|
-5.4%
| |||
WW
|
389
|
376
|
3.5%
|
5.7%
|
-2.2%
| |||
TRAUMA
| ||||||||
US
|
381
|
364
|
4.7%
|
4.7%
|
-
| |||
Intl
|
261
|
292
|
-10.6%
|
-4.9%
|
-5.7%
| |||
WW
|
642
|
656
|
-2.1%
|
0.4%
|
-2.5%
| |||
SPINE & OTHER
| ||||||||
US
|
564
|
529
|
6.6%
|
6.6%
|
-
| |||
Intl
|
404
|
434
|
-6.9%
|
-1.8%
|
-5.1%
| |||
WW
|
968
|
963
|
0.5%
|
2.8%
|
-2.3%
| |||
REPORTED SALES vs. PRIOR PERIOD ($MM)
| ||||||||
FIRST QUARTER
| ||||||||
% Change
| ||||||||
2016
|
2015
|
Reported
|
Operational (1)
|
Currency
| ||||
SURGERY
| ||||||||
US
|
981
|
960
|
2.2%
|
2.2%
|
-
| |||
Intl
|
1,247
|
1,296
|
-3.8%
|
2.3%
|
-6.1%
| |||
WW
|
2,228
|
2,256
|
-1.2%
|
2.3%
|
-3.5%
| |||
ADVANCED
| ||||||||
US
|
352
|
329
|
7.0%
|
7.0%
|
-
| |||
Intl
|
464
|
441
|
5.2%
|
11.7%
|
-6.5%
| |||
WW
|
816
|
770
|
6.0%
|
9.7%
|
-3.7%
| |||
GENERAL
| ||||||||
US
|
419
|
422
|
-0.7%
|
-0.7%
|
-
| |||
Intl
|
651
|
711
|
-8.4%
|
-2.8%
|
-5.6%
| |||
WW
|
1,070
|
1,133
|
-5.6%
|
-2.1%
|
-3.5%
| |||
SPECIALTY
| ||||||||
US
|
210
|
209
|
0.5%
|
0.5%
|
-
| |||
Intl
|
132
|
144
|
-8.3%
|
-1.0%
|
-7.3%
| |||
WW
|
342
|
353
|
-3.1%
|
-0.1%
|
-3.0%
| |||
VISION CARE
| ||||||||
US
|
242
|
253
|
-4.3%
|
-4.3%
|
-
| |||
Intl
|
398
|
378
|
5.3%
|
9.8%
|
-4.5%
| |||
WW
|
640
|
631
|
1.4%
|
4.1%
|
-2.7%
| |||
TOTAL MEDICAL DEVICES
| ||||||||
US
|
3,026
|
2,962
|
2.2%
|
2.2%
|
-
| |||
Intl
|
3,083
|
3,296
|
-6.5%
|
-1.0%
|
-5.5%
| |||
WW
|
$ 6,109
|
6,258
|
-2.4%
|
0.5%
|
-2.9%
| |||
* Percentage greater than 100%
| ||||||||
** Not meaningful
| ||||||||
(1) Operational growth excludes the effect of translational currency
| ||||||||
(2) Unaudited
| ||||||||
(3) Reported as
| ||||||||
(4) Prior year amounts have been reclassified to conform to current year product disclosure
|
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