- Reported sales growth of 1.9% to $23.8 Billion with operational
growth of 8.1%* and adjusted operational growth of 8.2%*
- Earnings per share (EPS) of $1.68 increasing 22.6% and adjusted
EPS of $2.55 decreasing by 1.9%*
- Company is maintaining 2022 full-year guidance midpoints for
adjusted operational sales and reported adjusted EPS; increasing
adjusted operational EPS performance offsetting continued
unfavorable currency impacts
Johnson & Johnson (NYSE: JNJ) today announced results for
third-quarter 2022. “Our third quarter performance demonstrates our
continued strength and resilience across all three of our
businesses,” said Joaquin Duato, Chief Executive Officer. “Through
the ongoing efforts of our teams around the world, we continue to
navigate the dynamic macroeconomic environment and remain focused
on delivering transformative healthcare solutions. Looking ahead, I
remain confident in our business and ability to continue advancing
our innovative portfolio and pipeline.”
OVERALL FINANCIAL
RESULTS
Q3
($ in Millions, except EPS)
2022
2021
% Change
Reported Sales
$23,791
$23,338
1.9%
Net Earnings
4,458
3,667
21.6%
EPS (diluted)
$1.68
$1.37
22.6%
Q3
Non-GAAP* ($ in Millions, except EPS)
2022
2021
% Change
Operational Sales1,2
8.1%
Adjusted Operational Sales1,3
8.2%
Adjusted Net Earnings1,4
6,779
6,968
(2.7)%
Adjusted EPS (diluted)1,4
$2.55
$2.60
(1.9)%
1 Non-GAAP financial measure; refer
to reconciliations of non-GAAP financial measures included in
accompanying schedules 2 Excludes the impact of translational
currency 3 Excludes the net impact of acquisitions and divestitures
and translational currency 4 Excludes intangible amortization
expense and special items Note: values may have been rounded
REGIONAL SALES RESULTS
Q3
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
U.S.
$12,453
$11,963
4.1%
4.1
-
4.2
International
$11,338
$11,375
(0.3)
12.3
(12.6)
12.4
Worldwide
$23,791
$23,338
1.9%
8.1
(6.2)
8.2
1 Non-GAAP financial measure; refer to reconciliations of
non-GAAP financial measures included in accompanying schedules 2
Excludes the impact of translational currency 3 Excludes the net
impact of acquisitions and divestitures and translational currency
Note: Values may have been rounded
SEGMENT SALES RESULTS
Q3
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
Consumer Health4
$3,795
$3,812
(0.4)%
4.7
(5.1)
4.8
Pharmaceutical4
$13,214
$12,882
2.6
9.0
(6.4)
9.2
MedTech
$6,782
$6,644
2.1
8.1
(6.0)
8.1
Worldwide
$23,791
$23,338
1.9%
8.1
(6.2)
8.2
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
4 Certain international OTC products, primarily in China, were
reclassified from the Pharmaceutical segment to the Consumer Health
segment based on operational changes Note: Values may have been
rounded
THIRD
QUARTER 2022 SEGMENT COMMENTARY: Adjusted operational
sales* reflected below excludes the net impact of acquisitions and
divestitures and translational currency.
Consumer Health Consumer
Health worldwide adjusted operational sales increased 4.8%*. Major
contributors to growth include upper respiratory and analgesic
products in the over-the-counter franchise, NEUTROGENA and AVEENO
in Skin Health/Beauty and Women’s Health products outside the
United States.
Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 9.2%*,
driven by DARZALEX (daratumumab), a biologic for the treatment of
multiple myeloma, TREMFYA (guselkumab), a biologic for the
treatment of adults living with moderate to severe plaque
psoriasis, and for adults with active psoriatic arthritis, STELARA
(ustekinumab), a biologic for the treatment of a number of
immune-mediated inflammatory diseases, ERLEADA (apalutamide), a
next-generation androgen receptor inhibitor for the treatment of
patients with prostate cancer, and INVEGA SUSTENNA/XEPLION and
INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting,
injectable atypical antipsychotics for the treatment of
schizophrenia in adults. Also contributing to growth were sales of
the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the prevention of
the SARS-CoV-2 virus. This growth was partially offset by declines
in sales of REMICADE (infliximab), a biologic approved for the
treatment of several immune-mediated inflammatory diseases and
IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use
in treating certain B-cell malignancies, a type of blood or lymph
node cancer.
MedTech MedTech worldwide
adjusted operational sales grew 8.1%*, driven primarily by
electrophysiology products in Interventional Solutions, contact
lenses in Vision, Trauma in Orthopaedics and wound closure products
in General Surgery.
NOTABLE NEW ANNOUNCEMENTS IN THE
QUARTER: The information contained in this section
should be read in conjunction with Johnson & Johnson’s other
disclosures filed with the Securities and Exchange Commission,
including its Current Reports on Form 8-K, Quarterly Reports on
Form 10-Q and Annual Reports on Form 10-K. Copies of these filings
are available online at www.sec.gov, www.jnj.com or on request from
Johnson & Johnson. The reader is also encouraged to review all
other news releases and information available in the Investors
section of the company’s website at news releases, as well as
www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com,
and www.LTLManagementInformation.com.
Regulatory Decisions
STELARA (ustekinumab) Approved by the U.S.
Food and Drug Administration to Treat Pediatric Patients with
Active Psoriatic Arthritis
Press Release
European Commission Approves IMBRUVICA
(ibrutinib) in a Fixed-Duration Combination Regimen for Adult
Patients with Previously Untreated Chronic Lymphocytic Leukaemia
(CLL)
Press Release
Janssen Marks First Approval Worldwide for
TECVAYLI (teclistamab) with EC Authorisation of First-in-Class
Bispecific Antibody for the Treatment of Patients with Multiple
Myeloma
Press Release
U.S. FDA Approves IMBRUVICA (ibrutinib) as
First and Only BTKi Treatment for Pediatric Patients with Chronic
Graft-Versus-Host Disease
Press Release
Data Release
Janssen Announces New Data Supporting
Safety and Efficacy of RYBREVANT and Lazertinib Combination for
Patients with Non-Small Cell Lung Cancer and EGFR Mutations
Press Release
Final Analysis of Phase 2 GRIFFIN Study
Presented for DARZALEX (daratumumab)-based Investigational
Quadruplet Regimen in Patients with Newly Diagnosed,
Transplant-Eligible Multiple Myeloma
Press Release
TREMFYA (guselkumab) Demonstrates Higher
Rates of Complete Skin Clearance with Earlier Treatment in Adults
with Moderate to Severe Plaque Psoriasis in Phase 3b GUIDE
Study
Press Release
Results of Novel Clinical Study of
Guselkumab and Golimumab Combination Therapy Show Adults with
Moderately to Severely Active Ulcerative Colitis Maintained Higher
Rates of Clinical, Histologic, and Endoscopic Remission at Week
381
Press Release
STELARA (ustekinumab) Demonstrated
Sustained Symptomatic and Corticosteroid-Free Remission Through
Four Years in Adults with Moderately to Severely Active Ulcerative
Colitis1
Press Release
Janssen Announces Late-Breaking Data from
Two Gene Therapy Programs at the American Academy of Ophthalmology
2022 Annual Meeting
Press Release
Product Launches
Biosense Webster Launches the OCTARAY
Mapping Catheter with TRUEref Technology
Press Release
Johnson & Johnson Vision Introduces
All Purpose EDOF, TECNIS Symfony OptiBlue IOL, the Latest PC-IOL
Powered by InteliLight Technology
Press Release
Johnson & Johnson Vision Launches New
Contact Lens Innovation to Help Meet the Needs of Digitally Intense
Lifestyles: ACUVUE OASYS MAX 1-Day
Press Release
Biosense Webster Launches HELIOSTAR in
Europe, the First Radiofrequency Balloon Ablation Catheter,
Enabling Physicians to Perform More Efficient Cardiac
Ablations1
Press Release
Other
Johnson & Johnson Announces $5 Billion
Share Repurchase Program
Press Release
Johnson & Johnson Appoints Larry Merlo
as Non-Executive Chair Designate of Planned New Consumer Health
Company
Press Release
Johnson & Johnson Announces Kenvue as
the Name for Planned New Consumer Health Company
Press Release
1 Subsequent to the quarter.
FULL-YEAR 2022 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a
forward-looking basis because the company is unable to predict with
reasonable certainty the ultimate outcome of legal proceedings,
unusual gains and losses, acquisition-related expenses and purchase
accounting fair value adjustments without unreasonable effort.
These items are uncertain, depend on various factors, and could be
material to Johnson & Johnson's results computed in accordance
with GAAP.
($ in Billions, except EPS)
October 2022
July 2022
Adjusted Operational Sales1,2,5
Change vs. Prior Year
6.7% – 7.2%
6.5% – 7.5%
Operational Sales2,5/ Mid-point2,5
Change vs. Prior Year / Mid-point
$97.5B – $98.0B / $97.8B
6.7% – 7.2% / 7.0%
$97.3B – $98.3B / $97.8B
6.5% – 7.5% / 7.0%
Estimated Reported Sales3,5/
Mid-point3,5
Change vs. Prior Year / Mid-point
$93.0B – $93.5B / $93.3B
1.8% – 2.3% / 2.1%
$93.3B – $94.3B / $93.8B
2.1% – 3.1% / 2.6%
Adjusted Operational EPS (Diluted)2,4/
Mid-point2,4
Change vs. Prior Year / Mid-point
$10.70 – $10.75 / $10.73
9.2% – 9.7% / 9.5%
$10.65 – $10.75 / $10.70
8.7% – 9.7% / 9.2%
Adjusted EPS (Diluted)3,4 /
Mid-point3,4
Change vs. Prior Year / Mid-point
$10.02 – $10.07 / $10.05
2.3% – 2.8% / 2.6%
$10.00 – $10.10 / $10.05
2.1% – 3.1% / 2.6 %
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: October 2022 = $1.04 and July 2022 = $1.05
(Illustrative purposes only) 4 Non-GAAP financial measure; excludes
intangible amortization expense and special items 5 Excludes
COVID-19 Vaccine Note: percentages may have been rounded
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 135 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, and the anticipated separation of
the Company’s Consumer Health business. 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; the Company’s
ability to satisfy the necessary conditions to consummate the
separation of the Company’s Consumer Health business on a timely
basis or at all; the Company’s ability to successfully separate the
Company’s Consumer Health business and realize the anticipated
benefits from the separation; the New Consumer Health Company’s
ability to succeed as a standalone publicly traded company; and
risks related to the impact of the COVID-19 global pandemic, such
as the scope and duration of the outbreak, government actions and
restrictive measures implemented in response, material delays and
cancellations of medical procedures, supply chain disruptions and
other impacts to the business, or on the company’s ability to
execute business continuity plans, as a result of the COVID-19
pandemic. 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 2, 2022, including in the sections captioned “Cautionary
Note Regarding Forward-Looking Statements” and “Item 1A. Risk
Factors,” and in Johnson & Johnson’s subsequent Quarterly
Reports on Form 10-Q and other 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.
Johnson & Johnson and Subsidiaries Supplementary
Sales Data (Unaudited; Dollars in Millions)
THIRD QUARTER
NINE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Sales to customers by segment of business
Consumer Health (1) U.S.
$ 1,659
1,625
2.1
%
2.1
-
$ 4,903
4,987
(1.7
)
%
(1.7
)
-
International
2,136
2,187
(2.3
)
6.7
(9.0
)
6,283
6,320
(0.6
)
6.0
(6.6
)
3,795
3,812
(0.4
)
4.7
(5.1
)
11,186
11,307
(1.1
)
2.6
(3.7
)
Pharmaceutical (1) U.S.
7,438
7,221
3.0
3.0
-
21,229
20,536
3.4
3.4
-
International
5,776
5,661
2.0
16.7
(14.7
)
18,171
16,927
7.3
18.5
(11.2
)
13,214
12,882
2.6
9.0
(6.4
)
39,400
37,463
5.2
10.2
(5.0
)
Pharmaceutical excluding COVID-19 Vaccine (1,3) U.S.
7,438
6,951
7.0
7.0
-
21,109
20,115
4.9
4.9
-
International
5,287
5,429
(2.6
)
11.3
(13.9
)
16,801
16,582
1.3
11.7
(10.4
)
12,725
12,380
2.8
8.9
(6.1
)
37,910
36,697
3.3
8.0
(4.7
)
MedTech (2) U.S.
3,356
3,117
7.7
7.7
-
9,932
9,470
4.9
4.9
-
International
3,426
3,527
(2.9
)
8.5
(11.4
)
10,719
10,731
(0.1
)
8.2
(8.3
)
6,782
6,644
2.1
8.1
(6.0
)
20,651
20,201
2.2
6.6
(4.4
)
U.S.
12,453
11,963
4.1
4.1
-
36,064
34,993
3.1
3.1
-
International
11,338
11,375
(0.3
)
12.3
(12.6
)
35,173
33,978
3.5
12.9
(9.4
)
Worldwide
23,791
23,338
1.9
8.1
(6.2
)
71,237
68,971
3.3
7.9
(4.6
)
U.S.
12,453
11,693
6.5
6.5
-
35,944
34,572
4.0
4.0
-
International
10,849
11,143
(2.6
)
9.5
(12.1
)
33,803
33,633
0.5
9.5
(9.0
)
Worldwide excluding COVID-19 Vaccine (3)
$ 23,302
22,836
2.0
%
8.0
(6.0
)
$ 69,747
68,205
2.3
%
6.7
(4.4
)
Note: Percentages have been calculated using actual,
non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China,
were reclassified from the Pharmaceutical segment to the Consumer
Health segment based on operational changes. (2) Previously
referred to as Medical Devices (3) Refer to supplemental sales
reconciliation schedule
Johnson & Johnson and
Subsidiaries Supplementary Sales Data (Unaudited;
Dollars in Millions)
THIRD QUARTER
NINE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Sales to customers by geographic area U.S.
$ 12,453
11,963
4.1
%
4.1
-
$ 36,064
34,993
3.1
%
3.1
-
Europe
5,524
5,587
(1.1
)
14.5
(15.6
)
17,633
16,669
5.8
18.2
(12.4
)
Western Hemisphere excluding U.S.
1,562
1,500
4.1
9.1
(5.0
)
4,580
4,291
6.7
9.6
(2.9
)
Asia-Pacific, Africa
4,252
4,288
(0.9
)
10.5
(11.4
)
12,960
13,018
(0.4
)
7.2
(7.6
)
International
11,338
11,375
(0.3
)
12.3
(12.6
)
35,173
33,978
3.5
12.9
(9.4
)
Worldwide
$ 23,791
23,338
1.9
%
8.1
(6.2
)
$ 71,237
68,971
3.3
%
7.9
(4.6
)
Note: Percentages have been calculated using actual,
non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and Subsidiaries Condensed
Consolidated Statement of Earnings (Unaudited;
in Millions Except Per Share Figures) THIRD QUARTER
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$
23,791
100.0
$
23,338
100.0
1.9
Cost of products sold
7,807
32.8
7,250
31.1
7.7
Gross Profit
15,984
67.2
16,088
68.9
(0.6
)
Selling, marketing and administrative expenses
6,089
25.6
6,000
25.7
1.5
Research and development expense
3,597
15.1
3,422
14.7
5.1
In-process research and development
-
-
900
3.9
Interest (income) expense, net
(99
)
(0.4
)
7
0.0
Other (income) expense, net
493
2.1
1,850
7.9
Restructuring
82
0.3
60
0.2
Earnings before provision for taxes on income
5,822
24.5
3,849
16.5
51.3
Provision for taxes on income
1,364
5.8
182
0.8
649.5
Net earnings
$
4,458
18.7
$
3,667
15.7
21.6
Net earnings per share (Diluted)
$
1.68
$
1.37
22.6
Average shares outstanding (Diluted)
2,661.3
2,674.9
Effective tax rate
23.4
%
4.7
%
Adjusted earnings before provision for
taxes and net earnings (1) Earnings before provision
for taxes on income
$
8,073
33.9
$
8,058
34.5
0.2
Net earnings
$
6,779
28.5
$
6,968
29.9
(2.7
)
Net earnings per share (Diluted)
$
2.55
$
2.60
(1.9
)
Effective tax rate
16.0
%
13.5
%
(1) See Reconciliation of Non-GAAP Financial
Measures.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) NINE
MONTHS
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$
71,237
100.0
$
68,971
100.0
3.3
Cost of products sold
23,324
32.7
21,900
31.8
6.5
Gross Profit
47,913
67.3
47,071
68.2
1.8
Selling, marketing and administrative expenses
18,253
25.7
17,505
25.4
4.3
Research and development expense
10,762
15.1
9,994
14.5
7.7
In-process research and development
610
0.9
900
1.3
Interest (income) expense, net
(137
)
(0.2
)
83
0.1
Other (income) expense, net
664
0.9
480
0.7
Restructuring
237
0.3
169
0.2
Earnings before provision for taxes on income
17,524
24.6
17,940
26.0
(2.3
)
Provision for taxes on income
3,103
4.4
1,798
2.6
72.6
Net earnings
$
14,421
20.2
$
16,142
23.4
(10.7
)
Net earnings per share (Diluted)
$
5.41
$
6.04
(10.4
)
Average shares outstanding (Diluted)
2,667.5
2,674.6
Effective tax rate
17.7
%
10.0
%
Adjusted earnings before provision for taxes and net
earnings (1) Earnings before provision for taxes on
income
$
24,462
34.3
$
24,125
35.0
1.4
Net earnings
$
20,820
29.2
$
20,517
29.7
1.5
Net earnings per share (Diluted)
$
7.81
$
7.67
1.8
Effective tax rate
14.9
%
15.0
%
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries Reconciliation of
Non-GAAP Financial Measures
Third Quarter
Nine Months Ended
(Dollars in Millions Except Per Share Data)
2022
2021
2022
2021
Net Earnings, after tax- as reported
$4,458
$3,667
$14,421
$16,142
Pre-tax Adjustments Intangible Asset Amortization expense
1,041
1,159
3,244
3,576
Litigation related
219
2,077
604
2,054
IPR&D
-
900
610
900
Restructuring related
123
121
323
333
Acquisition, integration and divestiture related ¹
-
20
-
(504
)
(Gains)/losses on securities
164
(127
)
684
(335
)
Medical Device Regulation 2
78
59
208
161
COVID-19 Vaccine related costs 3
377
-
653
-
Consumer Health separation costs
249
-
619
-
Other
-
-
(7
)
-
Tax Adjustments Tax impact on special item adjustments 4
(379
)
(849
)
(1,085
)
(1,097
)
Consumer Health separation tax related costs
361
-
459
-
Tax legislation and other tax related
88
(59
)
87
(713
)
Adjusted Net Earnings, after tax
$6,779
$6,968
$20,820
$20,517
Average shares outstanding (Diluted)
2,661.3
2,674.9
2,667.5
2,674.6
Adjusted net earnings per share (Diluted)
$2.55
$2.60
$7.81
$7.67
Operational adjusted net earnings per share (Diluted)
$2.75
$8.25
Notes:
1
Acquisition, integration and divestiture related for the nine
months of 2021 primarily includes the gain on the divestiture of
two Pharmaceutical brands outside of the U.S.
2
European Medical Device Regulation (MDR) costs represent one-time
compliance costs for the Company’s previously registered products.
MDR is a replacement of the existing European Medical Devices
Directive regulatory framework, and manufacturers of currently
marketed medical devices were required to comply with EU MDR
beginning in May 2021. The Company considers the adoption of EU MDR
to be a significant one-time regulatory change and is not
indicative of on-going operations. The Company has excluded only
external third-party regulatory and consulting costs from its
MedTech operating segments' measures of profit and loss used for
making operating decisions and assessing performance which is
expected to be completed during 2024.
3
COVID-19 Vaccine related costs include remaining commitments and
obligations, including external manufacturing network exit costs
and required clinical trial expenses, associated with the Company's
modification of its COVID-19 vaccine research program and
manufacturing capacity to levels that meet all customer contractual
requirements.
4
The tax impact related to special item adjustments reflects the
current and deferred income taxes associated with the above pre-tax
special items in arriving at adjusted earnings.
Johnson &
Johnson and Subsidiaries Reconciliation of Non-GAAP
Financial Measure Adjusted
Operational Sales Growth THIRD QUARTER 2022 ACTUAL
vs. 2021 ACTUAL
Segments Consumer Health Pharmaceutical
MedTech Total WW As Reported
(0.4
)%
2.6
%
2.1
%
1.9
%
U.S.
2.1
%
3.0
%
7.7
%
4.1
%
International
(2.3
)%
2.0
%
(2.9
)%
(0.3
)%
WW Currency
(5.1
)
(6.4
)
(6.0
)
(6.2
)
U.S.
-
-
-
-
International
(9.0
)
(14.7
)
(11.4
)
(12.6
)
WW Operational
4.7
%
9.0
%
8.1
%
8.1
%
U.S.
2.1
%
3.0
%
7.7
%
4.1
%
International
6.7
%
16.7
%
8.5
%
12.3
%
All Other Acquisitions and Divestitures
0.1
0.2
0.0
0.1
U.S.
0.2
0.2
(0.2
)
0.1
International
0.0
0.1
0.2
0.1
WW Adjusted Operational
4.8
%
9.2
%
8.1
%
8.2
%
U.S.
2.3
%
3.2
%
7.5
%
4.2
%
International
6.7
%
16.8
%
8.7
%
12.4
%
Note: Percentages are based on actual, non-rounded
figures and may not sum.
Johnson & Johnson and
Subsidiaries Reconciliation of Non-GAAP Financial
Measure Adjusted Operational
Sales Growth NINE MONTHS 2022 ACTUAL vs. 2021
ACTUAL
Segments Consumer Health Pharmaceutical
MedTech Total WW As Reported
(1.1
)%
5.2
%
2.2
%
3.3
%
U.S.
(1.7
)%
3.4
%
4.9
%
3.1
%
International
(0.6
)%
7.3
%
(0.1
)%
3.5
%
WW Currency
(3.7
)
(5.0
)
(4.4
)
(4.6
)
U.S.
-
-
-
-
International
(6.6
)
(11.2
)
(8.3
)
(9.4
)
WW Operational
2.6
%
10.2
%
6.6
%
7.9
%
U.S.
(1.7
)%
3.4
%
4.9
%
3.1
%
International
6.0
%
18.5
%
8.2
%
12.9
%
All Other Acquisitions and Divestitures
0.5
0.1
0.1
0.2
U.S.
0.2
0.1
(0.2
)
0.1
International
0.7
0.1
0.2
0.2
WW Adjusted Operational
3.1
%
10.3
%
6.7
%
8.1
%
U.S.
(1.5
)%
3.5
%
4.7
%
3.2
%
International
6.7
%
18.6
%
8.4
%
13.1
%
Note: Percentages are based on actual, non-rounded
figures and may not sum.
REPORTED SALES
vs. PRIOR PERIOD ($MM) REPORTED
SALES vs. PRIOR PERIOD ($MM) THIRD QUARTER
NINE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
CONSUMER HEALTH SEGMENT
(2,3)
OTC
US
$
695
686
1.4
%
1.4
%
-
$
2,028
1,960
3.5
%
3.5
%
-
Intl
825
798
3.4
%
12.2
%
-8.8
%
2,434
2,223
9.5
%
16.3
%
-6.8
%
WW
1,519
1,484
2.5
%
7.2
%
-4.7
%
4,462
4,183
6.7
%
10.3
%
-3.6
%
SKIN HEALTH / BEAUTY
US
591
569
3.7
%
3.7
%
-
1,764
1,862
-5.3
%
-5.3
%
-
Intl
535
555
-3.6
%
6.2
%
-9.8
%
1,500
1,595
-6.0
%
1.5
%
-7.5
%
WW
1,126
1,124
0.1
%
5.0
%
-4.9
%
3,264
3,457
-5.6
%
-2.2
%
-3.4
%
ORAL CARE
US
158
150
5.2
%
5.2
%
-
471
478
-1.5
%
-1.5
%
-
Intl
217
248
-12.4
%
-4.3
%
-8.1
%
664
762
-12.8
%
-7.2
%
-5.6
%
WW
375
398
-5.8
%
-0.7
%
-5.1
%
1,135
1,240
-8.5
%
-5.0
%
-3.5
%
BABY CARE
US
91
95
-4.0
%
-4.0
%
-
264
288
-8.2
%
-8.2
%
-
Intl
283
296
-4.5
%
3.4
%
-7.9
%
840
879
-4.4
%
0.8
%
-5.2
%
WW
375
391
-4.3
%
1.6
%
-5.9
%
1,105
1,167
-5.4
%
-1.5
%
-3.9
%
WOMEN'S HEALTH
US
2
3
-22.0
%
-22.0
%
-
9
9
-2.8
%
-2.8
%
-
Intl
222
229
-2.7
%
8.4
%
-11.1
%
674
675
-0.1
%
8.0
%
-8.1
%
WW
225
232
-3.0
%
7.9
%
-10.9
%
684
684
-0.1
%
7.8
%
-7.9
%
WOUND CARE / OTHER
US
122
122
-0.2
%
-0.2
%
-
366
390
-6.0
%
-6.0
%
-
Intl
53
61
-11.4
%
-7.1
%
-4.3
%
170
186
-8.2
%
-5.4
%
-2.8
%
WW
176
182
-3.9
%
-2.5
%
-1.4
%
537
575
-6.7
%
-5.8
%
-0.9
%
TOTAL CONSUMER HEALTH
US
1,659
1,625
2.1
%
2.1
%
-
4,903
4,987
-1.7
%
-1.7
%
-
Intl
2,136
2,187
-2.3
%
6.7
%
-9.0
%
6,283
6,320
-0.6
%
6.0
%
-6.6
%
WW
$
3,795
3,812
-0.4
%
4.7
%
-5.1
%
$
11,186
11,307
-1.1
%
2.6
%
-3.7
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR
PERIOD ($MM) REPORTED SALES vs.
PRIOR PERIOD ($MM) THIRD QUARTER
NINE MONTHS % Change % Change
PHARMACEUTICAL SEGMENT (2,3)
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
IMMUNOLOGY
US
$
2,876
2,771
3.8
%
3.8
%
-
$
8,230
7,932
3.8
%
3.8
%
-
Intl
1,411
1,480
-4.7
%
8.9
%
-13.6
%
4,587
4,464
2.8
%
12.9
%
-10.1
%
WW
4,287
4,250
0.9
%
5.6
%
-4.7
%
12,817
12,395
3.4
%
7.1
%
-3.7
%
REMICADE
US
350
480
-27.0
%
-27.0
%
-
1,099
1,508
-27.1
%
-27.1
%
-
US Exports (4)
39
47
-16.9
%
-16.9
%
-
163
197
-17.2
%
-17.2
%
-
Intl
169
234
-27.8
%
-22.8
%
-5.0
%
606
721
-16.0
%
-11.9
%
-4.1
%
WW
558
761
-26.6
%
-25.1
%
-1.5
%
1,868
2,426
-23.0
%
-21.8
%
-1.2
%
SIMPONI / SIMPONI ARIA
US
298
295
0.9
%
0.9
%
-
886
840
5.4
%
5.4
%
-
Intl
248
276
-10.4
%
3.0
%
-13.4
%
797
877
-9.2
%
0.4
%
-9.6
%
WW
545
571
-4.6
%
1.9
%
-6.5
%
1,682
1,717
-2.0
%
2.9
%
-4.9
%
STELARA
US
1,655
1,569
5.5
%
5.5
%
-
4,766
4,396
8.4
%
8.4
%
-
Intl
794
809
-1.9
%
12.9
%
-14.8
%
2,571
2,404
6.9
%
18.2
%
-11.3
%
WW
2,449
2,378
3.0
%
8.0
%
-5.0
%
7,336
6,800
7.9
%
11.9
%
-4.0
%
TREMFYA
US
530
376
40.7
%
40.7
%
-
1,303
975
33.6
%
33.6
%
-
Intl
200
161
24.6
%
44.5
%
-19.9
%
613
459
33.7
%
49.0
%
-15.3
%
WW
729
537
35.9
%
41.9
%
-6.0
%
1,916
1,434
33.6
%
38.5
%
-4.9
%
OTHER IMMUNOLOGY
US
5
3
*
*
-
14
15
-3.5
%
-3.5
%
-
Intl
0
0
*
*
*
0
3
*
*
*
WW
5
3
*
*
*
14
18
-19.3
%
-19.3
%
0.0
%
INFECTIOUS DISEASES
US
390
679
-42.7
%
-42.7
%
-
1,266
1,635
-22.6
%
-22.6
%
-
Intl
905
698
29.7
%
49.1
%
-19.4
%
2,642
1,758
50.3
%
67.1
%
-16.8
%
WW
1,295
1,378
-6.0
%
3.8
%
-9.8
%
3,908
3,394
15.2
%
23.9
%
-8.7
%
COVID-19 VACCINE
US
0
270
*
*
-
120
421
-71.5
%
-71.5
%
-
Intl
489
233
*
*
*
1,370
346
*
*
*
WW
489
502
-2.7
%
13.1
%
-15.8
%
1,490
766
*
*
*
EDURANT / rilpivirine
US
9
12
-27.1
%
-27.1
%
-
27
31
-14.5
%
-14.5
%
-
Intl
237
247
-4.2
%
9.8
%
-14.0
%
691
733
-5.7
%
4.8
%
-10.5
%
WW
245
259
-5.2
%
8.2
%
-13.4
%
718
764
-6.1
%
4.0
%
-10.1
%
PREZISTA / PREZCOBIX / REZOLSTA /
SYMTUZA US
372
380
-2.2
%
-2.2
%
-
1,096
1,128
-2.9
%
-2.9
%
-
Intl
112
137
-17.9
%
-6.3
%
-11.6
%
354
440
-19.5
%
-11.2
%
-8.3
%
WW
485
517
-6.4
%
-3.3
%
-3.1
%
1,450
1,568
-7.5
%
-5.2
%
-2.3
%
OTHER INFECTIOUS DISEASES
US
10
18
-46.4
%
-46.4
%
-
24
55
-57.2
%
-57.2
%
-
Intl
68
82
-17.1
%
-10.8
%
-6.3
%
228
240
-5.0
%
0.2
%
-5.2
%
WW
77
99
-22.4
%
-17.2
%
-5.2
%
251
295
-14.8
%
-10.6
%
-4.2
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD
($MM) THIRD QUARTER NINE
MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
NEUROSCIENCE
US
919
835
10.0
%
10.0
%
-
2,658
2,448
8.6
%
8.6
%
-
Intl
763
845
-9.9
%
1.8
%
-11.7
%
2,498
2,751
-9.2
%
-0.6
%
-8.6
%
WW
1,681
1,680
0.0
%
5.9
%
-5.9
%
5,156
5,199
-0.8
%
3.7
%
-4.5
%
CONCERTA / Methylphenidate
US
41
35
19.3
%
19.3
%
-
114
117
-2.2
%
-2.2
%
-
Intl
117
122
-4.4
%
8.0
%
-12.4
%
362
372
-2.6
%
6.5
%
-9.1
%
WW
158
157
0.8
%
10.5
%
-9.7
%
476
489
-2.5
%
4.4
%
-6.9
%
INVEGA SUSTENNA /
XEPLION /
INVEGA TRINZA / TREVICTA
US
684
648
5.3
%
5.3
%
-
2,036
1,882
8.1
%
8.1
%
-
Intl
348
355
-2.3
%
12.2
%
-14.5
%
1,097
1,111
-1.3
%
9.4
%
-10.7
%
WW
1,031
1,004
2.6
%
7.8
%
-5.2
%
3,132
2,994
4.6
%
8.6
%
-4.0
%
RISPERDAL CONSTA
US
67
71
-6.1
%
-6.1
%
-
195
210
-7.1
%
-7.1
%
-
Intl
52
69
-24.2
%
-11.3
%
-12.9
%
178
242
-26.3
%
-17.0
%
-9.3
%
WW
119
140
-14.9
%
-8.6
%
-6.3
%
373
452
-17.4
%
-12.4
%
-5.0
%
OTHER NEUROSCIENCE
US
127
81
57.2
%
57.2
%
-
313
239
31.1
%
31.1
%
-
Intl
246
298
-17.9
%
-10.0
%
-7.9
%
861
1,026
-16.2
%
-10.2
%
-6.0
%
WW
374
379
-1.9
%
4.3
%
-6.2
%
1,174
1,265
-7.3
%
-2.4
%
-4.9
%
ONCOLOGY
US
1,812
1,525
18.8
%
18.8
%
-
5,073
4,364
16.2
%
16.2
%
-
Intl
2,252
2,140
5.2
%
20.9
%
-15.7
%
6,983
6,406
9.0
%
20.8
%
-11.8
%
WW
4,064
3,665
10.9
%
20.0
%
-9.1
%
12,056
10,770
11.9
%
19.0
%
-7.1
%
DARZALEX
US
1,097
841
30.3
%
30.3
%
-
3,071
2,302
33.4
%
33.4
%
-
Intl
955
739
29.3
%
48.2
%
-18.9
%
2,823
2,076
36.0
%
50.8
%
-14.8
%
WW
2,052
1,580
29.8
%
38.7
%
-8.9
%
5,894
4,378
34.6
%
41.6
%
-7.0
%
ERLEADA
US
254
214
19.1
%
19.1
%
-
693
578
20.0
%
20.0
%
-
Intl
235
130
*
*
*
647
329
*
*
*
WW
490
344
42.2
%
51.2
%
-9.0
%
1,340
907
47.7
%
54.9
%
-7.2
%
IMBRUVICA
US
353
413
-14.6
%
-14.6
%
-
1,072
1,311
-18.3
%
-18.3
%
-
Intl
559
654
-14.6
%
-2.5
%
-12.1
%
1,847
1,996
-7.5
%
1.9
%
-9.4
%
WW
911
1,066
-14.6
%
-7.2
%
-7.4
%
2,918
3,307
-11.8
%
-6.1
%
-5.7
%
ZYTIGA / abiraterone acetate
US
16
25
-33.1
%
-33.1
%
-
54
96
-43.4
%
-43.4
%
-
Intl
440
523
-15.9
%
-1.2
%
-14.7
%
1,446
1,653
-12.5
%
-1.9
%
-10.6
%
WW
456
548
-16.7
%
-2.6
%
-14.1
%
1,500
1,749
-14.2
%
-4.2
%
-10.0
%
OTHER ONCOLOGY
US
92
32
*
*
-
183
76
*
*
-
Intl
64
94
-32.1
%
-22.6
%
-9.5
%
220
352
-37.5
%
-31.2
%
-6.3
%
WW
155
126
23.1
%
30.2
%
-7.1
%
403
428
-5.9
%
-0.8
%
-5.1
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD
($MM) THIRD QUARTER NINE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
PULMONARY HYPERTENSION
US
604
610
-1.1
%
-1.1
%
-
1,736
1,778
-2.4
%
-2.4
%
-
Intl
247
258
-3.8
%
12.5
%
-16.3
%
810
821
-1.3
%
10.5
%
-11.8
%
WW
852
868
-1.9
%
3.0
%
-4.9
%
2,547
2,599
-2.0
%
1.7
%
-3.7
%
OPSUMIT
US
289
299
-3.4
%
-3.4
%
-
827
861
-4.0
%
-4.0
%
-
Intl
152
159
-4.7
%
11.6
%
-16.3
%
495
510
-3.0
%
8.7
%
-11.7
%
WW
441
458
-3.9
%
1.8
%
-5.7
%
1,322
1,371
-3.6
%
0.7
%
-4.3
%
UPTRAVI
US
283
265
6.6
%
6.6
%
-
824
792
3.9
%
3.9
%
-
Intl
50
44
14.2
%
29.5
%
-15.3
%
162
135
20.4
%
32.1
%
-11.7
%
WW
333
309
7.7
%
9.9
%
-2.2
%
986
927
6.3
%
8.0
%
-1.7
%
OTHER PULMONARY HYPERTENSION
US
33
47
-29.5
%
-29.5
%
-
86
125
-31.3
%
-31.3
%
-
Intl
46
54
-15.7
%
1.2
%
-16.9
%
154
176
-13.0
%
-1.0
%
-12.0
%
WW
78
101
-22.1
%
-12.9
%
-9.2
%
239
301
-20.5
%
-13.5
%
-7.0
%
CARDIOVASCULAR / METABOLISM /
OTHER US
837
800
4.5
%
4.5
%
-
2,266
2,379
-4.8
%
-4.8
%
-
Intl
198
241
-17.5
%
-8.8
%
-8.7
%
651
727
-10.4
%
-3.8
%
-6.6
%
WW
1,034
1,041
-0.6
%
1.4
%
-2.0
%
2,916
3,106
-6.1
%
-4.5
%
-1.6
%
XARELTO
US
689
636
8.4
%
8.4
%
-
1,806
1,794
0.7
%
0.7
%
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
689
636
8.4
%
8.4
%
-
1,806
1,794
0.7
%
0.7
%
-
INVOKANA / INVOKAMET
US
49
66
-25.8
%
-25.8
%
-
164
249
-34.1
%
-34.1
%
-
Intl
60
67
-11.0
%
-2.5
%
-8.5
%
193
194
-0.6
%
6.1
%
-6.7
%
WW
109
133
-18.4
%
-14.1
%
-4.3
%
357
443
-19.5
%
-16.6
%
-2.9
%
OTHER
US
98
98
-0.1
%
-0.1
%
-
295
336
-12.2
%
-12.2
%
-
Intl
138
173
-20.0
%
-11.3
%
-8.7
%
458
533
-14.0
%
-7.3
%
-6.7
%
WW
236
271
-12.8
%
-7.3
%
-5.5
%
753
869
-13.3
%
-9.2
%
-4.1
%
TOTAL PHARMACEUTICAL
US
7,438
7,221
3.0
%
3.0
%
-
21,229
20,536
3.4
%
3.4
%
-
Intl
5,776
5,661
2.0
%
16.7
%
-14.7
%
18,171
16,927
7.3
%
18.5
%
-11.2
%
WW
$
13,214
12,882
2.6
%
9.0
%
-6.4
%
$
39,400
37,463
5.2
%
10.2
%
-5.0
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD
($MM) THIRD QUARTER NINE
MONTHS
% Change
% Change
MEDTECH SEGMENT (2,3,5)
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
INTERVENTIONAL SOLUTIONS
US
$
547
444
23.2
%
23.2
%
-
$
1,566
1,353
15.7
%
15.7
%
-
Intl
513
513
0.0
%
13.0
%
-13.0
%
1,636
1,599
2.3
%
11.1
%
-8.8
%
WW
1,060
957
10.8
%
17.7
%
-6.9
%
3,202
2,952
8.5
%
13.2
%
-4.7
%
ORTHOPAEDICS
US
1,309
1,249
4.8
%
4.8
%
-
3,936
3,821
3.0
%
3.0
%
-
Intl
785
843
-6.9
%
4.6
%
-11.5
%
2,504
2,611
-4.1
%
4.3
%
-8.4
%
WW
2,095
2,093
0.1
%
4.7
%
-4.6
%
6,440
6,433
0.1
%
3.5
%
-3.4
%
HIPS
US
228
209
9.1
%
9.1
%
-
693
651
6.5
%
6.5
%
-
Intl
124
146
-15.1
%
-4.5
%
-10.6
%
437
451
-3.3
%
4.6
%
-7.9
%
WW
352
355
-0.9
%
3.5
%
-4.4
%
1,129
1,102
2.5
%
5.7
%
-3.2
%
KNEES
US
203
184
9.8
%
9.8
%
-
620
579
6.9
%
6.9
%
-
Intl
115
131
-12.8
%
-2.1
%
-10.7
%
386
403
-4.4
%
3.7
%
-8.1
%
WW
317
316
0.4
%
4.9
%
-4.5
%
1,005
983
2.3
%
5.6
%
-3.3
%
TRAUMA
US
473
455
3.8
%
3.8
%
-
1,412
1,352
4.4
%
4.4
%
-
Intl
244
260
-6.0
%
6.5
%
-12.5
%
749
805
-7.0
%
2.3
%
-9.3
%
WW
717
715
0.2
%
4.8
%
-4.6
%
2,161
2,157
0.2
%
3.6
%
-3.4
%
SPINE, SPORTS & OTHER
US
406
401
1.3
%
1.3
%
-
1,211
1,239
-2.2
%
-2.2
%
-
Intl
303
306
-1.1
%
10.2
%
-11.3
%
933
952
-2.0
%
6.1
%
-8.1
%
WW
708
706
0.3
%
5.2
%
-4.9
%
2,144
2,190
-2.1
%
1.4
%
-3.5
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD
($MM) THIRD QUARTER NINE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
SURGERY
US
984
948
3.7
%
3.7
%
-
2,897
2,881
0.5
%
0.5
%
-
Intl
1,439
1,457
-1.2
%
9.3
%
-10.5
%
4,410
4,418
-0.2
%
7.3
%
-7.5
%
WW
2,422
2,405
0.7
%
7.1
%
-6.4
%
7,306
7,299
0.1
%
4.6
%
-4.5
%
ADVANCED
US
457
440
3.8
%
3.8
%
-
1,328
1,304
1.8
%
1.8
%
-
Intl
701
705
-0.4
%
9.8
%
-10.2
%
2,132
2,126
0.3
%
7.2
%
-6.9
%
WW
1,158
1,144
1.2
%
7.5
%
-6.3
%
3,460
3,430
0.9
%
5.2
%
-4.3
%
GENERAL
US
527
508
3.6
%
3.6
%
-
1,569
1,577
-0.5
%
-0.5
%
-
Intl
737
752
-2.0
%
8.8
%
-10.8
%
2,277
2,292
-0.6
%
7.3
%
-7.9
%
WW
1,264
1,261
0.3
%
6.7
%
-6.4
%
3,846
3,869
-0.6
%
4.1
%
-4.7
%
VISION
US
517
475
8.8
%
8.8
%
-
1,534
1,414
8.5
%
8.5
%
-
Intl
689
714
-3.5
%
8.4
%
-11.9
%
2,170
2,103
3.2
%
12.9
%
-9.7
%
WW
1,206
1,189
1.4
%
8.6
%
-7.2
%
3,704
3,517
5.3
%
11.1
%
-5.8
%
CONTACT LENSES / OTHER
US
405
359
12.6
%
12.6
%
-
1,179
1,082
9.0
%
9.0
%
-
Intl
503
522
-3.6
%
9.5
%
-13.1
%
1,533
1,525
0.5
%
11.1
%
-10.6
%
WW
908
882
3.0
%
10.8
%
-7.8
%
2,712
2,607
4.0
%
10.2
%
-6.2
%
SURGICAL
US
112
117
-3.2
%
-3.2
%
-
355
333
6.8
%
6.8
%
-
Intl
186
191
-3.3
%
5.6
%
-8.9
%
637
577
10.3
%
17.6
%
-7.3
%
WW
298
308
-3.2
%
2.3
%
-5.5
%
992
910
9.0
%
13.6
%
-4.6
%
TOTAL MEDTECH
US
3,356
3,117
7.7
%
7.7
%
-
9,932
9,470
4.9
%
4.9
%
-
Intl
3,426
3,527
-2.9
%
8.5
%
-11.4
%
10,719
10,731
-0.1
%
8.2
%
-8.3
%
WW
$
6,782
6,644
2.1
%
8.1
%
-6.0
%
$
20,651
20,201
2.2
%
6.6
%
-4.4
%
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) Certain prior year amounts have been reclassified
to conform to current year product disclosures (4) Reported as U.S.
sales (5) Previously referred to as Medical Devices
Supplemental Sales Reconciliation
(Unaudited) (Dollars in Millions)
THIRD QUARTER
NINE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Pharmaceutical U.S.
$
7,438
7,221
3.0
%
3.0
-
$
21,229
20,536
3.4
%
3.4
-
International
5,776
5,661
2.0
16.7
(14.7
)
18,171
16,927
7.3
18.5
(11.2
)
Worldwide
13,214
12,882
2.6
9.0
(6.4
)
39,400
37,463
5.2
10.2
(5.0
)
COVID-19 Vaccine U.S.
0
270
* *
-
120
421
(71.5
)
(71.5
)
-
International
489
233
* * *
1,370
346
* * * Worldwide
489
502
(2.7
)
13.1
(15.8
)
1,490
766
* * * Pharmaceutical excluding COVID-19 Vaccine U.S.
7,438
6,951
7.0
7.0
-
21,109
20,115
4.9
4.9
-
International
5,287
5,429
(2.6
)
11.3
(13.9
)
16,801
16,582
1.3
11.7
(10.4
)
Worldwide
12,725
12,380
2.8
8.9
(6.1
)
37,910
36,697
3.3
8.0
(4.7
)
Worldwide U.S.
12,453
11,963
4.1
4.1
-
36,064
34,993
3.1
3.1
-
International
11,338
11,375
(0.3
)
12.3
(12.6
)
35,173
33,978
3.5
12.9
(9.4
)
Worldwide
23,791
23,338
1.9
8.1
(6.2
)
71,237
68,971
3.3
7.9
(4.6
)
COVID-19 Vaccine U.S.
0
270
* *
-
120
421
(71.5
)
(71.5
)
-
International
489
233
* * *
1,370
346
* * * Worldwide
489
502
(2.7
)
13.1
(15.8
)
1,490
766
* * * Worldwide U.S.
12,453
11,693
6.5
6.5
-
35,944
34,572
4.0
4.0
-
International
10,849
11,143
(2.6
)
9.5
(12.1
)
33,803
33,633
0.5
9.5
(9.0
)
Worldwide excluding COVID-19 Vaccine
$
23,302
22,836
2.0
%
8.0
(6.0
)
$
69,747
68,205
2.3
%
6.7
(4.4
)
Note: Columns and rows within tables may not add due
to rounding * Percentage greater than 100% or not meaningful
Johnson & Johnson and Subsidiaries Reconciliation of Non-GAAP
Financial Measures Q3 QTD - Income Before Tax by Segment* Dollars
in Millions
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Consumer Health Separation Costs
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment $
809
(577
)
4,249
4,200
1,124
423
(111
)
(197
)
(249
)
-
5,822
3,849
% to Sales
21.3
%
-15.1
%
32.2
%
32.6
%
16.6
%
6.4
%
-0.5
%
-0.8
%
-1.0
%
0.0
%
24.5
%
16.5
%
Intangible asset amortization expense
83
103
698
799
260
257
-
-
-
-
1,041
1,159
In-process research and development
-
-
-
900
-
-
-
-
-
900
Litigation related
-
1,359
7
756
212
(38
)
-
-
-
-
219
2,077
Loss/(gain) on securities
-
1
177
(135
)
(13
)
7
-
-
-
-
164
(127
)
Restructuring related
31
36
23
17
69
68
-
-
-
-
123
121
Acquisition, integration and divestiture related
-
-
-
3
-
17
-
-
-
-
-
20
Medical Device Regulation
-
-
-
-
78
59
-
-
-
-
78
59
COVID-19 Vaccine related costs
-
-
377
-
-
-
-
-
-
-
377
-
Consumer Health separation costs
-
-
-
-
-
-
-
-
249
-
249
-
Other
-
-
-
-
-
-
-
-
-
-
-
-
Adjusted Income Before Tax by Segment $
923
922
5,531
5,640
1,730
1,693
(111
)
(197
)
-
-
8,073
8,058
% to Sales
24.3
%
24.2
%
41.9
%
43.8
%
25.5
%
25.5
%
-0.5
%
-0.8
%
0.0
%
0.0
%
33.9
%
34.5
%
1 Prior year income before tax has been
reclassified as Certain international OTC products, primarily in
China, were reclassified from the Pharmaceutical segment to the
Consumer Health segment based on operational changes
*Estimated as of 10/18/2022 Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures Q3 YTD - Income
Before Tax by Segment* Dollars in Millions
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Consumer Health
Separation Costs
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment $
2,279
1,131
12,593
13,663
3,742
3,798
(471
)
(652
)
(619
)
-
17,524
17,940
% to Sales
20.4
%
10.0
%
32.0
%
36.5
%
18.1
%
18.8
%
-0.7
%
-0.9
%
-0.9
%
0.0
%
24.6
%
26.0
%
Intangible asset amortization expense
277
314
2,194
2,497
773
765
-
-
-
-
3,244
3,576
In-process research and development
-
-
610
-
-
900
-
-
-
-
610
900
Litigation related
78
1,481
43
675
483
(102
)
-
-
-
-
604
2,054
Loss/(gain) on securities
-
(19
)
673
(249
)
11
(67
)
-
-
-
-
684
(335
)
Restructuring related
70
91
32
54
221
188
-
-
-
-
323
333
Acquisition, integration and divestiture related
-
-
-
(567
)
-
63
-
-
-
-
-
(504
)
Medical Device Regulation
-
-
-
-
208
161
-
-
-
-
208
161
COVID-19 Vaccine related costs
-
-
653
-
-
-
-
-
-
-
653
-
Consumer Health separation costs
-
-
-
-
-
-
-
-
619
-
619
-
Other
-
-
-
-
-
-
(7
)
-
-
-
(7
)
-
Adjusted Income Before Tax by Segment $
2,704
2,998
16,798
16,073
5,438
5,706
(478
)
(652
)
-
-
24,462
24,125
% to Sales
24.2
%
26.5
%
42.6
%
42.9
%
26.3
%
28.2
%
-0.7
%
-0.9
%
0.0
%
0.0
%
34.3
%
35.0
%
1 Prior year income before tax has been
reclassified as Certain international OTC products, primarily in
China, were reclassified from the Pharmaceutical segment to the
Consumer Health segment based on operational changes
*Estimated as of 10/18/2022
Johnson & Johnson and
Subsidiaries GAAP to Non-GAAP Reconciliation $ in
Millions Quarter to Date
Third Quarter
Oct 2, 2022
GAAP
Intangible asset
amortization
Litigation related
In-process research and
development
Restructuring related
Acquisition, integration and
divestiture related
(Loss)/gain on
securities
Medical Device
Regulation
COVID-19 Vaccine Related
Costs
Consumer Health separation
costs
Consumer Health separation tax
related costs
Tax legislation and other tax
related
Other
Third Quarter
Oct 2, 2022
Non-GAAP
Cost of products sold
$
7,807
(1,041
)
(13
)
(29
)
(102
)
-
-
-
-
6,622
Selling, marketing and admin expenses
6,089
(7
)
(2
)
6,080
Research and development expense
3,597
-
(42
)
(80
)
-
3,475
Other (Income) / Expense
493
-
(219
)
(28
)
-
(164
)
(195
)
(247
)
-
-
(360
)
In-process research and development
-
-
-
Restructuring
82
(82
)
-
Provision for taxes on income
1,364
164
(7
)
-
23
-
43
15
96
45
(361
)
(88
)
-
1,294
Net Earnings
4,458
877
226
-
100
-
121
63
281
204
361
88
-
6,779
Third Quarter
Oct 3, 2021
GAAP
Intangible asset
amortization
Litigation related
In-process research and
development
Restructuring related
Acquisition, integration and
divestiture related
(Loss)/gain on
securities
Medical Device
Regulation
COVID-19 Vaccine Related
Costs
Consumer Health separation
costs
Consumer Health separation tax
related costs
Tax legislation and other tax
related
Other
Second Quarter
Oct 3, 2021
Non-GAAP
Cost of products sold
$
7,250
(1,133
)
(18
)
(22
)
6,077
Selling, marketing and admin expenses
6,000
(6
)
5,994
Research and development expense
3,422
-
(31
)
3,391
Other (Income) / Expense
1,850
(26
)
(2,077
)
(43
)
(20
)
127
-
-
-
-
(189
)
In-process research and development
900
(900
)
-
Restructuring
60
(60
)
-
Provision for taxes on income
182
165
433
202
22
(6
)
22
11
-
-
-
59
-
1,090
Net Earnings
3,667
994
1,644
698
99
26
(149
)
48
-
-
-
(59
)
-
6,968
Year to Date
Nine Months
Oct 2, 2022
GAAP
Intangible asset
amortization
Litigation related
In-process research and
development
Restructuring related
Acquisition, integration and
divestiture related
(Loss)/gain on
securities
Medical Device
Regulation
COVID-19 Vaccine Related
Costs
Consumer Health separation
costs
Consumer Health separation tax
related costs
Tax legislation and other tax
related
Other
Nine Months
Oct 2, 2022
Non-GAAP
Cost of products sold
$
23,324
(3,232
)
(46
)
(76
)
(296
)
19,674
Selling, marketing and admin expenses
18,253
(19
)
(2
)
18,232
Research and development expense
10,762
-
(113
)
(190
)
10,459
Other (Income) / Expense
664
(12
)
(604
)
(40
)
-
(684
)
(167
)
(617
)
-
7
(1,453
)
In-process research and development
610
(610
)
-
Restructuring
237
(237
)
-
Provision for taxes on income
3,103
502
(89
)
138
60
-
164
39
161
112
(459
)
(87
)
(2
)
3,642
Net Earnings
14,421
2,742
693
472
263
-
520
169
492
507
459
87
(5
)
20,820
Nine Months
Oct 3, 2021
GAAP
Intangible asset
amortization
Litigation related
In-process research and
development
Restructuring related
Acquisition, integration and
divestiture related (1)
(Loss)/gain on
securities
Medical Device
Regulation
COVID-19 Vaccine Related
Costs
Consumer Health separation
costs
Consumer Health separation tax
related costs
Tax legislation and other tax
related
Other
Nine Months
Oct 3, 202
Non-GAAP
Cost of products sold
$
21,900
(3,550
)
(65
)
(59
)
18,226
Selling, marketing and admin expenses
17,505
(17
)
17,488
Research and development expense
9,994
-
(85
)
9,909
Other (Income) / Expense
480
(26
)
(2,054
)
(99
)
504
335
-
-
-
-
(860
)
In-process research and development
900
(900
)
-
Restructuring
169
(169
)
-
Provision for taxes on income
1,798
505
432
202
59
(104
)
(27
)
30
-
-
-
713
-
3,608
Net Earnings
16,142
3,071
1,622
698
274
(400
)
(308
)
131
-
-
-
(713
)
-
20,517
(1) 2021 primarily includes gains on the divestitures
of two Pharmaceutical brands outside of the United States.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221018005309/en/
Press Contacts: Jake Sargent (732) 524-1090
Investor Contacts:
Jessica Moore (732) 524-2955
Sarah Wood (732) 524-2617
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