Form 8-K JOHNSON & JOHNSON For: Apr 16
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
April 16, 2019
(Exact name of registrant as specified in its charter)
New Jersey | I-3215 | 22-1024240 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
732-524-0400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On April 16, 2019, Johnson & Johnson issued the attached press release announcing its sales and earnings for the first quarter ended March 31, 2019.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Johnson & Johnson | ||||
(Registrant) | ||||
Date: | April 16, 2019 | By: | /s/ Ronald A. Kapusta | |
Ronald A. Kapusta Controller (Principal Accounting Officer) | ||||
Exhibit 99.15
JOHNSON & JOHNSON REPORTS 2019 FIRST-QUARTER RESULTS:
• | Sales of $20.0 billion reflecting growth of 0.1%, operational growth of 3.9%* and adjusted operational growth of 5.5%* |
• | EPS of $1.39 decreased 13.1%; adjusted EPS of $2.10 increased 1.9%* |
• | Midpoint of adjusted EPS guidance maintained, overcoming incremental currency headwinds |
• | Strength of business drives up guidance for operational sales and adjusted operational EPS |
New Brunswick, N.J. (April 16, 2019) - Johnson & Johnson (NYSE: JNJ) today announced results for first-quarter 2019. “Our strong first-quarter results reflect continued underlying operational sales and adjusted EPS growth,” said Alex Gorsky, Chairman and Chief Executive Officer. “At the same time, we remain focused on investing in innovative technologies and platforms that will make a meaningful difference in the lives of patients around the world. I am proud of our global colleagues’ collective efforts to deliver on our long-term goals and our ability to create value for all of our stakeholders.”
OVERALL FINANCIAL RESULTS:
* Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
REGIONAL SALES RESULTS:
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:
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 COMMENTARY:
Consumer
Consumer worldwide operational sales, excluding the net impact of acquisitions and divestitures grew 0.7%* driven by over-the-counter products including TYLENOL analgesics, digestive health products and international anti-smoking aids; and NEUTROGENA beauty products, primarily offset by lower sales of baby care products.
Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures grew 7.9%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, DARZALEX (daratumumab), for the treatment of multiple myeloma, 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, PREZISTA/PREZCOBIX/REZOLSTA/SYMTUZA (D/C/F/TAF) for the treatment of human immunodeficiency virus type 1 (HIV-1) infection, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with non-metastatic castration-resistant prostate cancer partially offset by declines in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and 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 due to biosimilar and generic entrants.
Medical Devices
Worldwide Medical Devices operational sales, excluding the net impact of acquisitions and divestitures grew 4.3%* driven by the growth of electrophysiology products in the Interventional Solutions business; ACUVUE contact lenses in the Vision business; biosurgicals in the Advanced Surgery business; and wound closure products in the General Surgery business.
NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
Acquisitions/Divestitures/Licenses
• | Completed the divestiture of Advanced Sterilization Products1 (press release) |
• | Completed the acquisition of Auris Health, Inc.1 commercially available robotic platform technology (press release) |
• | Entered into an exclusive worldwide collaboration and license agreement with MeiraGTx to develop gene therapy programs for inherited retinal diseases (press release) |
Pipeline Updates
Regulatory Approvals | BALVERSA (erdafitinib) - Locally advanced or metastatic urothelial cancer (U.S.)1 | (press release) |
SPRAVATO (esketamine) - Treatment-resistant depression (U.S.) | (press release) | |
TREMFYA (guselkumab) - One-press patient-controlled injector (U.S.) | (press release) | |
DARZALEX (daratumumab) Split-dosing regimen (U.S.) | (press release) | |
IMBRUVICA (ibrutinib) plus obinutuzumab - Chronic lymphocytic leukemia (U.S.) | (press release) | |
Regulatory Submissions | INVOKANA (canagliflozin) - Chronic kidney disease in patients with Type 2 diabetes (U.S.) | (press release) |
DARZALEX (daratumumab) - Combination therapy for transplant eligible multiple myeloma patients (U.S.,EU) | (press release - U.S.) (press release - EU) | |
DARZALEX (daratumumab) - Combination therapy for transplant ineligible multiple myeloma patients (U.S.,EU) | (press release - U.S.) (press release - EU) | |
Other | Antihistamine-releasing contact lens demonstrates positive Phase 3 results | (press release) |
ACUVUE OASYS with TRANSITIONS LIGHT INTELLIGENT TECHNOLOGY availability (U.S) | (press release) | |
1 Subsequent to the quarter
FULL YEAR 2019 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.
April 2019 | January 2019 |
($ in Billions, except EPS)
Adjusted Operational Sales1,2 Change vs. Prior Year | 2.5% - 3.5% | 2.0% - 3.0% |
Operational Sales2 Change vs. Prior Year | $82.0 to $82.8 0.5% - 1.5% | $81.6 to $82.4 0.0% - 1.0% |
Estimated Reported Sales3 Change vs. Prior Year | $80.4 to $81.2 (1.5%) - (0.5%) | $80.4 to $81.2 (1.5%) - (0.5%) |
Adjusted Operational EPS (Diluted)2,4 Change vs. Prior Year | $8.73 to $8.83 6.7% - 7.9% | $8.65 to $8.80 5.7% - 7.6% |
Adjusted EPS (Diluted)3,4 Change vs. Prior Year | $8.53 to $8.63 4.3% - 5.5% | $8.50 to $8.65 3.9% - 5.8% |
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: April 2019 = $1.12; Euro Average Rate: Jan 2019 = $1.14 (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 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.
ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.
NON-GAAP FINANCIAL MEASURES:
*Operational sales growth excluding the impact of translational currency, adjusted operational sales growth excluding the net impact of acquisitions and divestitures and translational currency, as well as adjusted net earnings, adjusted diluted earnings per share and adjusted operational diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company's website at quarterly-results.
Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly-results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company's website at quarterly-results.
NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: 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,” and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Press Contacts: Investor Contacts:
Ernie Knewitz Christopher DelOrefice
(732) 524-6623 (732) 524-2955
(917) 697-2318 (M)
Cristal Downing Lisa Romanko
(732) 524-3283 (732) 524-2034
(908) 616-8833 (M)
Exhibit 99.2O
Johnson & Johnson and Subsidiaries | |||||||||||
Condensed Consolidated Statement of Earnings | |||||||||||
(Unaudited; in Millions Except Per Share Figures) | FIRST QUARTER | ||||||||||
2019 | 2018 | Percent | |||||||||
Percent | Percent | Increase | |||||||||
Amount | to Sales | Amount | to Sales | (Decrease) | |||||||
Sales to customers | $ 20,021 | 100.0 | $ 20,009 | 100.0 | 0.1 | ||||||
Cost of products sold | 6,615 | 33.0 | 6,614 | 33.1 | 0.0 | ||||||
Gross Profit | 13,406 | 67.0 | 13,395 | 66.9 | 0.1 | ||||||
Selling, marketing and administrative expenses | 5,219 | 26.1 | 5,263 | 26.3 | (0.8) | ||||||
Research and development expense | 2,858 | 14.3 | 2,404 | 12.0 | 18.9 | ||||||
In-process research and development | 890 | 4.4 | — | — | |||||||
Interest (income) expense, net | 3 | 0.0 | 145 | 0.7 | |||||||
Other (income) expense, net | (22) | (0.1) | 60 | 0.3 | |||||||
Restructuring | 36 | 0.2 | 42 | 0.2 | |||||||
Earnings before provision for taxes on income | 4,422 | 22.1 | 5,481 | 27.4 | (19.3) | ||||||
Provision for taxes on income | 673 | 3.4 | 1,114 | 5.6 | (39.6) | ||||||
Net earnings | 3,749 | 18.7 | 4,367 | 21.8 | (14.2) | ||||||
Net earnings per share (Diluted) | $ 1.39 | $ 1.60 | (13.1) | ||||||||
Average shares outstanding (Diluted) | 2,698.8 | 2,731.9 | |||||||||
Effective tax rate | 15.2 | % | 20.3 | % | |||||||
Adjusted earnings before provision for taxes and net earnings (1) (A) | |||||||||||
Earnings before provision for taxes on income | $ 6,867 | 34.3 | $ 6,858 | 34.3 | 0.1 | ||||||
Net earnings | $ 5,661 | 28.3 | $ 5,635 | 28.2 | 0.5 | ||||||
Net earnings per share (Diluted) | $ 2.10 | $ 2.06 | 1.9 | ||||||||
Effective tax rate | 17.6 | % | 17.8 | % | |||||||
(1) See Reconciliation of Non-GAAP Financial Measures. | |||||||||||
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. | |||||||||||
Johnson & Johnson and Subsidiaries | ||||||||||
Supplementary Sales Data | ||||||||||
(Unaudited; Dollars in Millions) | FIRST QUARTER | |||||||||
Percent Change | ||||||||||
2019 | 2018 | Total | Operations | Currency | ||||||
Sales to customers by | ||||||||||
segment of business | ||||||||||
Consumer | ||||||||||
U.S. | $ 1,438 | 1,436 | 0.2 | % | 0.2 | — | ||||
International | 1,880 | 1,962 | (4.2) | 3.7 | (7.9) | |||||
3,318 | 3,398 | (2.4) | 2.2 | (4.6) | ||||||
Pharmaceutical | ||||||||||
U.S. | 5,582 | 5,354 | 4.3 | 4.3 | — | |||||
International | 4,662 | 4,490 | 3.9 | 12.2 | (8.3) | |||||
10,244 | 9,844 | 4.1 | 7.9 | (3.8) | ||||||
Medical Devices | ||||||||||
U.S. | 3,109 | 3,161 | (1.6) | (1.6) | — | |||||
International | 3,350 | 3,606 | (7.1) | (0.3) | (6.8) | |||||
6,459 | 6,767 | (4.6) | (1.0) | (3.6) | ||||||
U.S. | 10,129 | 9,951 | 1.8 | 1.8 | — | |||||
International | 9,892 | 10,058 | (1.7) | 6.0 | (7.7) | |||||
Worldwide | $ 20,021 | 20,009 | 0.1 | % | 3.9 | (3.8) | ||||
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. | ||||||||||
Johnson & Johnson and Subsidiaries | |||||||||
Supplementary Sales Data | |||||||||
(Unaudited; Dollars in Millions) | FIRST QUARTER | ||||||||
Percent Change | |||||||||
2019 | 2018 | Total | Operations | Currency | |||||
Sales to customers by | |||||||||
geographic area | |||||||||
U.S. | $ 10,129 | 9,951 | 1.8 | % | 1.8 | — | |||
Europe | 4,609 | 4,797 | (3.9) | 4.5 | (8.4) | ||||
Western Hemisphere excluding U.S. | 1,503 | 1,567 | (4.1) | 8.7 | (12.8) | ||||
Asia-Pacific, Africa | 3,780 | 3,694 | 2.3 | 6.9 | (4.6) | ||||
International | 9,892 | 10,058 | (1.7) | 6.0 | (7.7) | ||||
Worldwide | $ 20,021 | 20,009 | 0.1 | % | 3.9 | (3.8) | |||
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. | |||||||||
Johnson & Johnson and Subsidiaries | |||||||
Reconciliation of Non-GAAP Financial Measures | |||||||
First Quarter | % Incr. / | ||||||
(Dollars in Millions Except Per Share Data) | 2019 | 2018 | (Decr.) | ||||
Earnings before provision for taxes on income - as reported | $ 4,422 | 5,481 | (19.3) | % | |||
Intangible asset amortization expense | 1,130 | 1,115 | |||||
In-process research and development | 890 | — | |||||
Litigation expense | 423 | — | |||||
Unrealized (gain)/loss on securities | (158) | 27 | |||||
Restructuring/Other (1) | 90 | 107 | |||||
Actelion acquisition related cost | 39 | 96 | |||||
AMO acquisition related cost | 28 | 21 | |||||
Other | 3 | 11 | |||||
Earnings before provision for taxes on income - as adjusted | $ 6,867 | 6,858 | 0.1 | % | |||
Net Earnings - as reported | $ 3,749 | 4,367 | (14.2) | % | |||
Intangible asset amortization expense | 846 | 996 | |||||
In-process research and development | 703 | — | |||||
Litigation expense | 342 | — | |||||
Unrealized (gain)/loss on securities | (125) | 21 | |||||
Restructuring/Other | 75 | 81 | |||||
Actelion acquisition related cost | 37 | 92 | |||||
AMO acquisition related cost | 23 | 17 | |||||
Impact of tax legislation (2) | — | 52 | |||||
Other | 11 | 9 | |||||
Net Earnings - as adjusted | $ 5,661 | 5,635 | 0.5 | % | |||
Diluted Net Earnings per share - as reported | $ 1.39 | 1.60 | (13.1) | % | |||
Intangible asset amortization expense | 0.31 | 0.36 | |||||
In-process research and development | 0.26 | — | |||||
Litigation expense | 0.13 | — | |||||
Unrealized (gain)/loss on securities | (0.05) | 0.01 | |||||
Restructuring/Other | 0.03 | 0.03 | |||||
Actelion acquisition related cost | 0.01 | 0.03 | |||||
AMO acquisition related cost | 0.01 | 0.01 | |||||
Impact of tax legislation | — | 0.02 | |||||
Other | 0.01 | — | |||||
Diluted Net Earnings per share - as adjusted | $ 2.10 | 2.06 | 1.9 | % | |||
Operational Diluted Net Earnings per share - as adjusted at 2017 foreign currency exchange rates | 1.93 | ||||||
Impact of currency at 2018 foreign currency exchange rates | 0.08 | 0.13 | |||||
Operational Diluted Net Earnings per share - as adjusted at 2018 foreign currency exchange rates | $ 2.18 | 2.06 | 5.8 | % | |||
(1) Includes $23M recorded in cost of products sold and $31M recorded in other (income) expense in the first quarter 2019, and $6M recorded in cost of products sold and $59M recorded in other (income) expense in the first quarter 2018 | |||||||
(2) Includes foreign currency translation | |||||||
Johnson & Johnson and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Financial Measure | ||||||||||||
Adjusted Operational Sales Growth (A) | ||||||||||||
FIRST QUARTER 2019 ACTUAL vs. 2018 ACTUAL | ||||||||||||
Segments | ||||||||||||
Consumer | Pharmaceutical | Medical Devices | Total | |||||||||
WW As Reported | (2.4 | )% | 4.1 | % | (4.6 | )% | 0.1 | % | ||||
U.S. | 0.2 | % | 4.3 | % | (1.6 | )% | 1.8 | % | ||||
International | (4.2 | )% | 3.9 | % | (7.1 | )% | (1.7 | )% | ||||
WW Currency | (4.6) | (3.8) | (3.6) | (3.8) | ||||||||
U.S. | — | — | — | — | ||||||||
International | (7.9) | (8.3) | (6.8) | (7.7) | ||||||||
WW Operational | 2.2% | 7.9% | (1.0)% | 3.9% | ||||||||
U.S. | 0.2% | 4.3% | (1.6)% | 1.8% | ||||||||
International | 3.7% | 12.2% | (0.3)% | 6.0% | ||||||||
Beauty | ||||||||||||
Nizoral | 0.4 | 0.1 | ||||||||||
U.S. | 0.3 | 0.0 | ||||||||||
International | 0.5 | 0.1 | ||||||||||
OTC | ||||||||||||
Zarbees | (0.8) | (0.1) | ||||||||||
U.S. | (2.0) | (0.3) | ||||||||||
International | 0.0 | 0.0 | ||||||||||
Diabetes Care | ||||||||||||
LifeScan | 5.1 | 1.7 | ||||||||||
U.S. | 3.8 | 1.2 | ||||||||||
International | 6.2 | 2.3 | ||||||||||
Beauty | ||||||||||||
RoC | 0.8 | 0.1 | ||||||||||
U.S. | 1.5 | 0.2 | ||||||||||
International | 0.3 | 0.1 | ||||||||||
Beauty | ||||||||||||
Dr. Ci Labo - Japan | (2.1) | (0.4) | ||||||||||
U.S. | 0.0 | 0.0 | ||||||||||
International | (3.6) | (0.7) | ||||||||||
All Other Acquisitions and Divestitures | 0.2 | 0.0 | 0.2 | 0.1 | ||||||||
U.S. | 0.0 | 0.0 | 0.3 | 0.1 | ||||||||
International | 0.4 | 0.0 | 0.0 | 0.1 | ||||||||
WW Adjusted Operational | 0.7% | 7.9% | 4.3% | 5.5% | ||||||||
U.S. | 0.0% | 4.3% | 2.5% | 3.1% | ||||||||
International | 1.3% | 12.2% | 5.9% | 7.9% | ||||||||
Note: Percentages are based on actual, non-rounded figures and may not sum. | ||||||||||||
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry. | ||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
CONSUMER SEGMENT (2) | ||||||||||||||
BABY CARE | ||||||||||||||
US | $ | 87 | 97 | (10.9 | )% | (10.9 | )% | — | % | |||||
Intl | 307 | 360 | (14.8 | ) | (6.4 | ) | (8.4 | ) | ||||||
WW | 394 | 457 | (14.0 | ) | (7.4 | ) | (6.6 | ) | ||||||
BEAUTY | ||||||||||||||
US | 588 | 611 | (3.8 | ) | (3.8 | ) | — | |||||||
Intl | 502 | 473 | 6.2 | 13.1 | (6.9 | ) | ||||||||
WW | 1,090 | 1,084 | 0.6 | 3.6 | (3.0 | ) | ||||||||
ORAL CARE | ||||||||||||||
US | 151 | 157 | (3.5 | ) | (3.5 | ) | — | |||||||
Intl | 216 | 222 | (2.8 | ) | 4.6 | (7.4 | ) | |||||||
WW | 367 | 379 | (3.1 | ) | 1.2 | (4.3 | ) | |||||||
OTC | ||||||||||||||
US | 507 | 465 | 9.1 | 9.1 | — | |||||||||
Intl | 580 | 607 | (4.6 | ) | 2.8 | (7.4 | ) | |||||||
WW | 1,087 | 1,072 | 1.3 | 5.5 | (4.2 | ) | ||||||||
WOMEN'S HEALTH | ||||||||||||||
US | 3 | 3 | 4.2 | 4.2 | — | |||||||||
Intl | 222 | 240 | (7.5 | ) | 4.3 | (11.8 | ) | |||||||
WW | 225 | 243 | (7.3 | ) | 4.3 | (11.6 | ) | |||||||
WOUND CARE / OTHER | ||||||||||||||
US | 102 | 103 | (0.9 | ) | (0.9 | ) | — | |||||||
Intl | 53 | 60 | (11.6 | ) | (6.0 | ) | (5.6 | ) | ||||||
WW | 155 | 163 | (4.8 | ) | (2.7 | ) | (2.1 | ) | ||||||
TOTAL CONSUMER | ||||||||||||||
US | 1,438 | 1,436 | 0.2 | 0.2 | — | |||||||||
Intl | 1,880 | 1,962 | (4.2 | ) | 3.7 | (7.9 | ) | |||||||
WW | $ | 3,318 | 3,398 | (2.4 | )% | 2.2 | % | (4.6 | )% | |||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
PHARMACEUTICAL SEGMENT (2) (4) | ||||||||||||||
IMMUNOLOGY | ||||||||||||||
US | $ | 2,163 | 2,000 | 8.1 | % | 8.1 | % | — | % | |||||
Intl | 1,088 | 1,042 | 4.5 | 12.6 | (8.1 | ) | ||||||||
WW | 3,251 | 3,042 | 6.9 | 9.6 | (2.7 | ) | ||||||||
REMICADE | ||||||||||||||
US | 774 | 916 | (15.5 | ) | (15.5 | ) | — | |||||||
US Exports (3) | 76 | 142 | (46.4 | ) | (46.4 | ) | — | |||||||
Intl | 252 | 331 | (23.6 | ) | (17.2 | ) | (6.4 | ) | ||||||
WW | 1,102 | 1,389 | (20.6 | ) | (19.1 | ) | (1.5 | ) | ||||||
SIMPONI / SIMPONI ARIA | ||||||||||||||
US | 263 | 224 | 17.0 | 17.0 | — | |||||||||
Intl | 261 | 294 | (11.1 | ) | (3.8 | ) | (7.3 | ) | ||||||
WW | 524 | 518 | 1.0 | 5.2 | (4.2 | ) | ||||||||
STELARA | ||||||||||||||
US | 882 | 652 | 35.2 | 35.2 | — | |||||||||
Intl | 523 | 409 | 27.9 | 37.2 | (9.3 | ) | ||||||||
WW | 1,405 | 1,061 | 32.4 | 36.0 | (3.6 | ) | ||||||||
TREMFYA | ||||||||||||||
US | 168 | 66 | * | * | — | |||||||||
Intl | 49 | 6 | * | * | * | |||||||||
WW | 217 | 72 | * | * | * | |||||||||
OTHER IMMUNOLOGY (4) | ||||||||||||||
US | — | — | — | — | — | |||||||||
Intl | 3 | 2 | 19.5 | 21.0 | (1.5 | ) | ||||||||
WW | 3 | 2 | 19.5 | 21.0 | (1.5 | ) | ||||||||
INFECTIOUS DISEASES | ||||||||||||||
US | 357 | 333 | 7.3 | 7.3 | — | |||||||||
Intl | 489 | 497 | (1.7 | ) | 7.8 | (9.5 | ) | |||||||
WW | 846 | 830 | 1.9 | 7.6 | (5.7 | ) | ||||||||
EDURANT / rilpivirine | ||||||||||||||
US | 12 | 14 | (18.8 | ) | (18.8 | ) | — | |||||||
Intl | 199 | 196 | 2.2 | 10.6 | (8.4 | ) | ||||||||
WW | 211 | 210 | 0.8 | 8.6 | (7.8 | ) | ||||||||
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA | ||||||||||||||
US | 315 | 273 | 15.5 | 15.5 | — | |||||||||
Intl | 208 | 205 | 1.5 | 11.9 | (10.4 | ) | ||||||||
WW | 523 | 478 | 9.5 | 13.9 | (4.4 | ) | ||||||||
OTHER INFECTIOUS DISEASES | ||||||||||||||
US | 30 | 46 | (33.8 | ) | (33.8 | ) | — | |||||||
Intl | 82 | 96 | (16.0 | ) | (6.3 | ) | (9.7 | ) | ||||||
WW | 112 | 142 | (21.7 | ) | (15.1 | ) | (6.6 | ) | ||||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
PHARMACEUTICAL SEGMENT (2) (4) (Continued) | ||||||||||||||
NEUROSCIENCE | ||||||||||||||
US | $ | 723 | 624 | 16.0 | % | 16.0 | % | — | % | |||||
Intl | 905 | 935 | (3.2 | ) | 4.3 | (7.5 | ) | |||||||
WW | 1,629 | 1,559 | 4.5 | 9.0 | (4.5 | ) | ||||||||
CONCERTA / methylphenidate | ||||||||||||||
US | 97 | 66 | 47.7 | 47.7 | — | |||||||||
Intl | 116 | 107 | 8.5 | 15.8 | (7.3 | ) | ||||||||
WW | 214 | 173 | 23.4 | 28.0 | (4.6 | ) | ||||||||
INVEGA SUSTENNA / XEPLION / INVEGA | ||||||||||||||
TRINZA / TREVICTA | ||||||||||||||
US | 483 | 400 | 20.7 | 20.7 | — | |||||||||
Intl | 307 | 296 | 3.8 | 12.3 | (8.5 | ) | ||||||||
WW | 790 | 696 | 13.5 | 17.1 | (3.6 | ) | ||||||||
RISPERDAL CONSTA | ||||||||||||||
US | 77 | 82 | (6.8 | ) | (6.8 | ) | — | |||||||
Intl | 102 | 114 | (10.3 | ) | (2.4 | ) | (7.9 | ) | ||||||
WW | 179 | 196 | (8.8 | ) | (4.3 | ) | (4.5 | ) | ||||||
OTHER NEUROSCIENCE | ||||||||||||||
US | 66 | 76 | (12.0 | ) | (12.0 | ) | — | |||||||
Intl | 379 | 418 | (9.2 | ) | (2.5 | ) | (6.7 | ) | ||||||
WW | 446 | 494 | (9.6 | ) | (3.9 | ) | (5.7 | ) | ||||||
ONCOLOGY | ||||||||||||||
US | 962 | 933 | 3.1 | 3.1 | — | |||||||||
Intl | 1,556 | 1,378 | 13.0 | 22.2 | (9.2 | ) | ||||||||
WW | 2,518 | 2,311 | 9.0 | 14.5 | (5.5 | ) | ||||||||
DARZALEX | ||||||||||||||
US | 352 | 264 | 33.0 | 33.0 | — | |||||||||
Intl | 277 | 168 | 65.1 | 80.1 | (15.0 | ) | ||||||||
WW | 629 | 432 | 45.5 | 51.3 | (5.8 | ) | ||||||||
IMBRUVICA | ||||||||||||||
US | 349 | 227 | 53.7 | 53.7 | — | |||||||||
Intl | 435 | 360 | 20.8 | 32.0 | (11.2 | ) | ||||||||
WW | 784 | 587 | 33.5 | 40.4 | (6.9 | ) | ||||||||
VELCADE | ||||||||||||||
US | — | — | — | — | — | |||||||||
Intl | 263 | 313 | (16.0 | ) | (10.1 | ) | (5.9 | ) | ||||||
WW | 263 | 313 | (16.0 | ) | (10.1 | ) | (5.9 | ) | ||||||
ZYTIGA / abiraterone acetate | ||||||||||||||
US | 185 | 407 | (54.5 | ) | (54.5 | ) | — | |||||||
Intl | 494 | 438 | 12.9 | 20.9 | (8.0 | ) | ||||||||
WW | 679 | 845 | (19.6 | ) | (15.4 | ) | (4.2 | ) | ||||||
OTHER ONCOLOGY | ||||||||||||||
US | 76 | 35 | * | * | — | |||||||||
Intl | 87 | 99 | (12.2 | ) | (3.9 | ) | (8.3 | ) | ||||||
WW | 163 | 134 | 21.7 | 27.8 | (6.1 | ) | ||||||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
PHARMACEUTICAL SEGMENT (2) (4) (Continued) | ||||||||||||||
PULMONARY HYPERTENSION | ||||||||||||||
US | $ | 430 | 361 | 19.2 | % | 19.2 | % | — | % | |||||
Intl | 226 | 224 | 0.7 | 8.6 | (7.9 | ) | ||||||||
WW | 656 | 585 | 12.1 | 15.1 | (3.0 | ) | ||||||||
OPSUMIT | ||||||||||||||
US | 172 | 149 | 15.9 | 15.9 | — | |||||||||
Intl | 133 | 122 | 8.9 | 17.8 | (8.9 | ) | ||||||||
WW | 306 | 271 | 12.7 | 16.8 | (4.1 | ) | ||||||||
TRACLEER | ||||||||||||||
US | 61 | 68 | (10.1 | ) | (10.1 | ) | — | |||||||
Intl | 56 | 72 | (22.9 | ) | (18.3 | ) | (4.6 | ) | ||||||
WW | 117 | 140 | (16.7 | ) | (14.4 | ) | (2.3 | ) | ||||||
UPTRAVI | ||||||||||||||
US | 176 | 124 | 41.4 | 41.4 | — | |||||||||
Intl | 22 | 16 | 42.8 | 53.6 | (10.8 | ) | ||||||||
WW | 198 | 140 | 41.6 | 42.8 | (1.2 | ) | ||||||||
OTHER | ||||||||||||||
US | 21 | 20 | 3.6 | 3.6 | — | |||||||||
Intl | 15 | 14 | 4.6 | 17.1 | (12.5 | ) | ||||||||
WW | 35 | 34 | 4.0 | 9.2 | (5.2 | ) | ||||||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
PHARMACEUTICAL SEGMENT (2) (4) (Continued) | ||||||||||||||
CARDIOVASCULAR / METABOLISM / OTHER | ||||||||||||||
US | $ | 947 | 1,103 | (14.1 | )% | (14.1 | )% | — | % | |||||
Intl | 398 | 414 | (3.9 | ) | 2.7 | (6.6 | ) | |||||||
WW | 1,345 | 1,517 | (11.3 | ) | (9.5 | ) | (1.8 | ) | ||||||
XARELTO | ||||||||||||||
US | 542 | 578 | (6.3 | ) | (6.3 | ) | — | |||||||
Intl | — | — | — | — | — | |||||||||
WW | 542 | 578 | (6.3 | ) | (6.3 | ) | — | |||||||
INVOKANA / INVOKAMET | ||||||||||||||
US | 154 | 204 | (24.8 | ) | (24.8 | ) | — | |||||||
Intl | 49 | 44 | 11.6 | 20.0 | (8.4 | ) | ||||||||
WW | 202 | 248 | (18.4 | ) | (16.9 | ) | (1.5 | ) | ||||||
PROCRIT / EPREX | ||||||||||||||
US | 148 | 189 | (21.6 | ) | (21.6 | ) | — | |||||||
Intl | 78 | 87 | (10.2 | ) | (5.2 | ) | (5.0 | ) | ||||||
WW | 226 | 276 | (18.0 | ) | (16.4 | ) | (1.6 | ) | ||||||
OTHER | ||||||||||||||
US | 104 | 132 | (21.3 | ) | (21.3 | ) | — | |||||||
Intl | 271 | 283 | (4.4 | ) | 2.5 | (6.9 | ) | |||||||
WW | 374 | 415 | (9.7 | ) | (5.1 | ) | (4.6 | ) | ||||||
TOTAL PHARMACEUTICAL | ||||||||||||||
US | 5,582 | 5,354 | 4.3 | 4.3 | — | |||||||||
Intl | 4,662 | 4,490 | 3.9 | 12.2 | (8.3 | ) | ||||||||
WW | $ | 10,244 | 9,844 | 4.1 | % | 7.9 | % | (3.8 | )% | |||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
MEDICAL DEVICES SEGMENT (2) (5) | ||||||||||||||
DIABETES CARE (5) | ||||||||||||||
US | $ | — | 117 | * | * | — | % | |||||||
Intl | — | 222 | * | * | * | |||||||||
WW | — | 339 | * | * | * | |||||||||
INTERVENTIONAL SOLUTIONS | ||||||||||||||
US | 343 | 304 | 12.6 | 12.6 | — | |||||||||
Intl | 389 | 336 | 15.8 | 22.7 | (6.9 | ) | ||||||||
WW | 732 | 640 | 14.3 | 17.9 | (3.6 | ) | ||||||||
ORTHOPAEDICS | ||||||||||||||
US | 1,318 | 1,307 | 0.9 | 0.9 | — | |||||||||
Intl | 885 | 943 | (6.2 | ) | 0.7 | (6.9 | ) | |||||||
WW | 2,204 | 2,250 | (2.1 | ) | 0.8 | (2.9 | ) | |||||||
HIPS | ||||||||||||||
US | 213 | 209 | 2.1 | 2.1 | — | |||||||||
Intl | 148 | 154 | (3.8 | ) | 3.5 | (7.3 | ) | |||||||
WW | 361 | 363 | (0.4 | ) | 2.7 | (3.1 | ) | |||||||
KNEES | ||||||||||||||
US | 223 | 228 | (2.2 | ) | (2.2 | ) | — | |||||||
Intl | 146 | 159 | (8.2 | ) | (1.5 | ) | (6.7 | ) | ||||||
WW | 369 | 387 | (4.7 | ) | (1.9 | ) | (2.8 | ) | ||||||
TRAUMA | ||||||||||||||
US | 417 | 407 | 2.5 | 2.5 | — | |||||||||
Intl | 268 | 289 | (7.0 | ) | (0.3 | ) | (6.7 | ) | ||||||
WW | 685 | 696 | (1.4 | ) | 1.3 | (2.7 | ) | |||||||
SPINE & OTHER | ||||||||||||||
US | 465 | 463 | 0.3 | 0.3 | — | |||||||||
Intl | 323 | 341 | (5.5 | ) | 1.3 | (6.8 | ) | |||||||
WW | 788 | 804 | (2.2 | ) | 0.7 | (2.9 | ) | |||||||
See footnotes at end of schedule | ||||||||||||||
Johnson & Johnson | ||||||||||||||
Segment Sales | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
FIRST QUARTER | ||||||||||||||
% Change | ||||||||||||||
2019 | 2018 | Reported | Operational (1) | Currency | ||||||||||
MEDICAL DEVICES SEGMENT (2) (5) (Continued) | ||||||||||||||
SURGERY | ||||||||||||||
US | $ | 1,001 | 993 | 0.8 | % | 0.8 | % | — | % | |||||
Intl | 1,394 | 1,430 | (2.6 | ) | 4.7 | (7.3 | ) | |||||||
WW | 2,395 | 2,423 | (1.2 | ) | 3.1 | (4.3 | ) | |||||||
ADVANCED | ||||||||||||||
US | 404 | 393 | 2.9 | 2.9 | — | |||||||||
Intl | 576 | 573 | 0.5 | 7.7 | (7.2 | ) | ||||||||
WW | 980 | 966 | 1.5 | 5.8 | (4.3 | ) | ||||||||
GENERAL | ||||||||||||||
US | 425 | 423 | 0.3 | 0.3 | — | |||||||||
Intl | 665 | 704 | (5.6 | ) | 1.6 | (7.2 | ) | |||||||
WW | 1,089 | 1,127 | (3.4 | ) | 1.1 | (4.5 | ) | |||||||
SPECIALTY | ||||||||||||||
US | 172 | 177 | (2.5 | ) | (2.5 | ) | — | |||||||
Intl | 153 | 153 | (0.2 | ) | 7.6 | (7.8 | ) | |||||||
WW | 325 | 330 | (1.4 | ) | 2.2 | (3.6 | ) | |||||||
VISION | ||||||||||||||
US | 446 | 440 | 1.5 | 1.5 | — | |||||||||
Intl | 682 | 675 | 1.1 | 7.2 | (6.1 | ) | ||||||||
WW | 1,129 | 1,115 | 1.2 | 5.0 | (3.8 | ) | ||||||||
CONTACT LENSES / OTHER | ||||||||||||||
US | 321 | 309 | 4.1 | 4.1 | — | |||||||||
Intl | 502 | 498 | 1.0 | 7.4 | (6.4 | ) | ||||||||
WW | 824 | 807 | 2.1 | 6.1 | (4.0 | ) | ||||||||
SURGICAL | ||||||||||||||
US | 125 | 131 | (4.5 | ) | (4.5 | ) | — | |||||||
Intl | 180 | 177 | 1.3 | 6.8 | (5.5 | ) | ||||||||
WW | 305 | 308 | (1.1 | ) | 2.0 | (3.1 | ) | |||||||
TOTAL MEDICAL DEVICES | ||||||||||||||
US | 3,109 | 3,161 | (1.6 | ) | (1.6 | ) | — | |||||||
Intl | 3,350 | 3,606 | (7.1 | ) | (0.3 | ) | (6.8 | ) | ||||||
WW | $ | 6,459 | 6,767 | (4.6 | )% | (1.0 | )% | (3.6 | )% | |||||
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) Prior year amounts have been reclassified to conform to current year product disclosure | ||||||||||||||
(5) Reflects LifeScan divestiture October 2, 2018 | ||||||||||||||