News: Johnson & Johnson Reports 2016 First-Quarter Results - Part - II

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Johnson & Johnson and Subsidiaries
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.

Johnson & Johnson and Subsidiaries
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 $17M recorded in cost of products sold

Johnson & Johnson and Subsidiaries
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)
BABY CARE
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%
ORAL CARE
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%
SKIN CARE
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 U.S. sales
(4) Prior year amounts have been reclassified to conform to current year product disclosure