Johnson & Johnson Reports 2015 Fourth-Quarter Results:

2015 Fourth-Quarter Sales of $17.8 Billion decreased 2.4%; EPS was $1.15

2015 Full-Year Sales of $70.1 Billion decreased 5.7%, Full-Year EPS was $5.48

Adjusted 2015 Fourth-Quarter EPS was $1.44, an increase of 5.1%*, and Adjusted 2015 Full-Year EPS was $6.20, a decrease of 3.0%*

Strong Operational Sales Growth Excluding Acquisitions/Divestitures and Hepatitis C Impact

Jan 26, 2016, 06:40 ET from Johnson & Johnson

NEW BRUNSWICK, N.J., Jan. 26, 2016 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $17.8 billion for the fourth quarter of 2015, a decrease of 2.4% as compared to the fourth quarter of 2014.  Operational sales results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 8.0%. International sales decreased 11.7%, reflecting operational growth of 1.2% and a negative currency impact of 12.9%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.8%, domestic sales increased 13.4% and international sales increased 2.9%.*

Worldwide sales for the full-year 2015 were $70.1 billion, a decrease of 5.7% versus 2014.  Operational results increased 1.8% and the negative impact of currency was 7.5%.  Domestic sales increased 2.6%.  International sales decreased 13.1%, reflecting operational growth of 1.1% and a negative currency impact of 14.2%.  Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 6.5%, domestic sales increased 10.6% and international sales increased 3.0%.*  

Net earnings and diluted earnings per share for the fourth quarter of 2015 were $3.2 billion and $1.15, respectively.  Fourth-quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.6 billion. Fourth-quarter 2014 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a charge for after-tax special items of approximately $1.1 billion.  A reconciliation of non-GAAP financial measures is included as an accompanying schedule.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.0 billion and adjusted diluted earnings per share were $1.44, representing increases of 4.0% and 5.1%, respectively, as compared to the same period in 2014.* On an operational basis, adjusted diluted earnings per share increased 12.4%.*

Net earnings and diluted earnings per share for the full-year 2015 were $15.4 billion and $5.48, respectively.  Full-year net earnings included after-tax intangible amortization expense of approximately $1.1 billion and a net charge for after-tax special items of approximately $0.9 billion.  Full-year 2014 net earnings included after-tax intangible amortization expense of approximately $1.2 billion and a net charge for after-tax special items of approximately $0.8 billion. A reconciliation of non-GAAP financial measures is included as an accompanying schedule.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2015 were $17.4 billion and adjusted diluted earnings per share were $6.20, representing decreases of 4.8% and 3.0%, respectively, as compared to the full year of 2014.* On an operational basis, adjusted diluted earnings per share increased 5.8%.*

"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands," said Alex Gorsky, Chairman and Chief Executive Officer.  "As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in."

Mr. Gorsky continued, "I want to thank all of our colleagues for contributing to these results through their commitment and dedication to the people around the world who rely on our products."

The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion reflecting expected operational growth in the range of 2.5% to 3.5%.  Excluding the impact of acquisitions, divestitures and hepatitis C sales, operational sales growth is expected to be in the range of 4.5% to 6.0%.*  Additionally, the company announced adjusted earnings guidance for full-year 2016 of $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%.*  Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.

Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year, consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. Domestic sales increased 2.5%; international sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of 14.6%.  Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 4.1%, domestic sales increased 4.6% and international sales increased 3.8%.*  

Positive contributors to Consumer operational results were sales of over-the-counter products including TYLENOL® and MOTRIN® analgesics, upper respiratory products including ZYRTEC® allergy medications, and digestive health products; international feminine protection products; LISTERINE® oral care products; and NEUTROGENA® skin care products.  

Worldwide Pharmaceutical sales of $31.4 billion for the full-year 2015 represented a decrease of 2.7% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 6.9%. Domestic sales increased 5.2%; international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of 15.0%.  Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 11.0%, domestic sales increased 18.1% and international sales increased 3.3%.*

Worldwide operational sales growth was driven by new products and the strength of core products. New product sales growth was negatively impacted by lower sales of OLYSIO®/SOVRIAD® (simeprevir) due to competitive entrants.  Strong growth in new products include INVOKANA®/INVOKAMET® (canagliflozin), for the treatment of adults with type 2 diabetes; IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, or blood cancers; XARELTO® (rivaroxaban), an oral anticoagulant; and ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer. 

Additional contributors to operational sales growth were STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults; CONCERTA® (methylphenidate HCI), for the treatment of attention deficit hyperactivity disorder; and SIMPONI®/SIMPONI ARIA® (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases. 

During the quarter, the U.S. Food and Drug Administration (FDA) approved DARZALEX™ (daratumumab) for the treatment of double refractory multiple myeloma. Additionally, the FDA approved YONDELIS® (trabectedin) for the treatment of patients with unresectable or metastatic liposarcoma or leiomyosarcoma.  The European Commission approved EDURANT® (rilpiravine) in combination with other anti-retroviral agents, for treatment-naïve adolescent patients aged 12 to 18 years with human immunodeficiency virus-1 (HIV-1) infection. 

In the U.S., a New Drug Application (NDA) was submitted for INVOKAMET® XR, a once-daily therapy combining fixed doses of canagliflozin and metformin hydrochloride extended release for the treatment of adults with type 2 diabetes.  Additionally, regulatory applications were submitted for STELARA® (ustekinumab) for the treatment of adult patients with moderately to severely active Crohn's disease to the FDA and the European Medicines Agency (EMA).  Several regulatory submissions were completed for additional indications of IMBRUVICA® (ibrutinib) including for patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab in both the U.S. and the European Union (EU) as well as for use in treatment-naïve patients with CLL and relapsed/refractory patients with mantle cell lymphoma in the EU.

Also in the quarter, the acquisition of Novira Therapeutics, Inc., a privately held clinical-stage biopharmaceutical company developing innovative therapies for curative treatment of chronic hepatitis B virus infection, was completed.

Worldwide Medical Devices sales of $25.1 billion for the full-year represented a decrease of 8.7% versus the prior year consisting of an operational decrease of 1.4% and a negative currency impact of 7.3%. Domestic sales decreased 1.0%; international sales decreased 14.8%, which reflected an operational decrease of 1.7% and a negative currency impact of 13.1%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.5%, domestic sales increased 3.3% and international sales increased 2.0%.*

Primary contributors to operational growth were sales of endocutters and biosurgical products in the Advanced Surgery business; electrophysiology products in the Cardiovascular business; joint reconstruction products in the Orthopaedics business; and insulin pump products in the Diabetes Care business. 

During the quarter, the pediatric indication for the Animas® Vibe® insulin pump was approved by the FDA.  Also in the quarter, the acquisition of Coherex Medical, Inc., a privately held medical device company focused on the development of the Coherex WaveCrest® left atrial appendage occlusion system, was completed.

Subsequent to the quarter, the company announced on January 19th, a restructuring of certain Medical Devices businesses.  The company's Consumer Medical Devices businesses, Vision Care and Diabetes Care, are not impacted by these actions. The restructuring is being undertaken to accelerate the pace of innovation, address unmet patient needs and drive growth.  The actions are expected to result in ongoing annualized, pre-tax cost savings of $0.8 billion to $1.0 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016. 

About Johnson & Johnson

Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 127,000 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Operational sales growth excluding the net impact of acquisitions, divestitures and hepatitis C sales, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.  Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com.

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

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

NOTE TO INVESTORS

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, business strategy and restructuring plans. 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 and uncertainties inherent in new product development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; any required consultation procedures relating to the restructuring workforce actions; the potential that the expected benefits and opportunities related to the restructuring may not be realized or may take longer to realize than expected; market conditions and the possibility that the on-going share repurchase program may be suspended or discontinued; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. A further list and description 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 28, 2014, including Exhibit 99 thereto, and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.jnj.com, or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

FOURTH QUARTER


TWELVE MONTHS






Percent Change






Percent Change


2015


2014


Total


Operations


Currency


2015


2014


Total


Operations


Currency

Sales to customers by




















segment of business








































Consumer




















    U.S.

$   1,231


1,294


(4.9)

%

(4.9)


-


$   5,222


5,096


2.5

%

2.5


-

    International

2,089


2,312


(9.6)


5.5


(15.1)


8,285


9,400


(11.9)


2.7


(14.6)


3,320


3,606


(7.9)


1.8


(9.7)


13,507


14,496


(6.8)


2.7


(9.5)





















Pharmaceutical




















    U.S.

4,910


4,356


12.7


12.7


-


18,333


17,432


5.2


5.2


-

    International

3,154


3,643


(13.4)


(0.9)


(12.5)


13,097


14,881


(12.0)


3.0


(15.0)


8,064


7,999


0.8


6.5


(5.7)


31,430


32,313


(2.7)


4.2


(6.9)





















Medical Devices




















    U.S.

3,152


2,954


6.7


6.7


-


12,132


12,254


(1.0)


(1.0)


-

    International

3,275


3,695


(11.4)


0.6


(12.0)


13,005


15,268


(14.8)


(1.7)


(13.1)


6,427


6,649


(3.3)


3.4


(6.7)


25,137


27,522


(8.7)


(1.4)


(7.3)





















U.S.

9,293


8,604


8.0


8.0


-


35,687


34,782


2.6


2.6


-

International

8,518


9,650


(11.7)


1.2


(12.9)


34,387


39,549


(13.1)


1.1


(14.2)

Worldwide

$ 17,811


18,254


(2.4)

%

4.4


(6.8)


$ 70,074


74,331


(5.7)

%

1.8


(7.5)

 

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

FOURTH QUARTER


TWELVE MONTHS






Percent Change






Percent Change


2015


2014


Total


Operations


Currency


2015


2014


Total


Operations


Currency

Sales to customers by




















geographic area








































U.S.

$   9,293


8,604


8.0

%

8.0


-


$ 35,687


34,782


2.6

%

2.6


-





















Europe

4,002


4,560


(12.2)


0.8


(13.0)


15,995


18,947


(15.6)


1.1


(16.7)

Western Hemisphere excluding U.S.

1,442


1,782


(19.1)


2.8


(21.9)


6,045


7,160


(15.6)


2.6


(18.2)

Asia-Pacific, Africa

3,074


3,308


(7.1)


0.9


(8.0)


12,347


13,442


(8.1)


0.3


(8.4)

International

8,518


9,650


(11.7)


1.2


(12.9)


34,387


39,549


(13.1)


1.1


(14.2)





















Worldwide

$ 17,811


18,254


(2.4)

%

4.4


(6.8)


$ 70,074


74,331


(5.7)

%

1.8


(7.5)

 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

FOURTH QUARTER












2015


2014


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$ 17,811


100.0


$ 18,254


100.0


(2.4)

Cost of products sold

5,673


31.8


5,853


32.1


(3.1)

Selling, marketing and administrative expenses

5,891


33.1


5,822


31.9


1.2

Research and development expense

2,864


16.1


2,635


14.4


8.7

In-process research and development

214


1.2


156


0.8



Interest (income) expense, net

107


0.6


122


0.7



Other (income) expense, net

(1,205)


(6.8)


963


5.3



Restructuring

509


2.9


-


-



Earnings before provision for taxes on income

3,758


21.1


2,703


14.8


39.0

Provision for taxes on income

543


3.0


182


1.0



Net earnings

$   3,215


18.1


$   2,521


13.8


27.5











Net earnings per share (Diluted)

$     1.15




$     0.89




29.2











Average shares outstanding (Diluted)

2,803.3




2,845.3















Effective tax rate

14.4

%



6.7

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$   4,913


27.6


$   4,296


23.5


14.4

Net earnings 

$   4,043


22.7


$   3,887


21.3


4.0

Net earnings per share (Diluted)

$     1.44




$     1.37




5.1

Effective tax rate

17.7

%



9.5

%














(1) See Reconciliation of Non-GAAP Financial Measures.










 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS












2015


2014


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$ 70,074


100.0


$ 74,331


100.0


(5.7)

Cost of products sold

21,536


30.7


22,746


30.6


(5.3)

Selling, marketing and administrative expenses

21,203


30.3


21,954


29.5


(3.4)

Research and development expense

9,046


12.9


8,494


11.4


6.5

In-process research and development

224


0.3


178


0.3



Interest (income) expense, net

424


0.6


466


0.6



Other (income) expense, net

(2,064)


(2.9)


(70)


(0.1)



Restructuring

509


0.7


-


-



Earnings before provision for taxes on income

19,196


27.4


20,563


27.7


(6.6)

Provision for taxes on income

3,787


5.4


4,240


5.7


(10.7)

Net earnings

$ 15,409


22.0


$ 16,323


22.0


(5.6)











Net earnings per share (Diluted)

$     5.48




$     5.70




(3.9)











Average shares outstanding (Diluted)

2,812.9




2,863.9















Effective tax rate

19.7

%



20.6

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$ 22,003


31.4


$ 22,825


30.7


(3.6)

Net earnings 

$ 17,445


24.9


$ 18,318


24.6


(4.8)

Net earnings per share (Diluted)

$     6.20




$     6.39




(3.0)

Effective tax rate

20.7

%



19.7

%














(1) See Reconciliation of Non-GAAP Financial Measures.










 

 

Johnson & Johnson and Subsidiaries














Reconciliation of Non-GAAP Financial Measures





























Fourth Quarter


% Incr. /



Twelve Months 


% Incr. /


(Dollars in Millions Except Per Share Data)

2015


2014


(Decr.)



2015


2014


(Decr.)
















Earnings before provision for taxes on income - as reported

$ 3,758


2,703


39.0

%


$ 19,196


20,563


(6.6)

%















Intangible asset amortization expense

301


371





1,570


1,630


















Restructuring (1)

590


-





590


-


















In-process research and development

214


156





224


178


















Synthes integration costs 

83


325





196


754


















DePuy ASRHip program

-


-





148


126


















Litigation expense, net

-


692





141


1,253


















Ortho-Clinical Diagnostics divestiture net (gain)/expense

(33)


49





(62)


(1,899)


















Additional year of Branded Prescription Drug Fee

-


-





-


220


















Earnings before provision for taxes on income - as adjusted

$ 4,913


4,296


14.4

%


$ 22,003


22,825


(3.6)

%















Net Earnings - as reported

$ 3,215


2,521


27.5

%


$ 15,409


16,323


(5.6)

%















Intangible asset amortization expense

220


275





1,113


1,213


















Restructuring

415


-





415


-


















In-process research and development

156


115





162


131


















Synthes integration costs 

59


237





144


555


















DePuy ASRHip program

-


-





130


111


















Litigation expense, net

-


652





118


1,225

(2)

















Ortho-Clinical Diagnostics divestiture net (gain)/expense

(22)


87





(46)


(1,062)


















Additional year of Branded Prescription Drug Fee

-


-





-


220


















Tax benefit associated with Conor Medsystems

-


-





-


(398)


















Net Earnings  - as adjusted 

$ 4,043


3,887


4.0

%


$ 17,445


18,318


(4.8)

%















Diluted Net Earnings per share  - as reported

$   1.15


0.89


29.2

%


$     5.48


5.70


(3.9)

%















Intangible asset amortization expense

0.07


0.10





0.39


0.42


















Restructuring

0.15


-





0.15


-


















In-process research and development

0.06


0.04





0.06


0.04


















Synthes integration costs 

0.02


0.08





0.05


0.19


















DePuy ASRHip program

-


-





0.05


0.04


















Litigation expense, net

-


0.23





0.04


0.43


















Ortho-Clinical Diagnostics divestiture net (gain)/expense

(0.01)


0.03





(0.02)


(0.37)


















Additional year of Branded Prescription Drug Fee

-


-





-


0.08


















Tax benefit associated with Conor Medsystems

-


-





-


(0.14)


















Diluted Net Earnings per share  - as adjusted 

$   1.44


1.37


5.1

%


$     6.20


6.39


(3.0)

%















Operational Diluted Net Earnings per share - as adjusted*

$   1.54


1.37


12.4

%


$     6.76


6.39


5.8

%















*Excludes the effect of translational currency




























(1)Includes $81 million recorded in cost of products sold














(2)Includes adjustment to deferred tax asset related to deductibility by tax jurisdiction

























 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions, Divestitures and Hepatitis C Sales (1)

 FOURTH QUARTER 2015 ACTUAL vs. 2014 ACTUAL 


 Segments 



 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total  



Operational % (2)

 WW As Reported: 


1.8%


6.5%


3.4%


4.4%

 U.S. 


(4.9)%


12.7%


6.7%


8.0%

 International 


5.5%


(0.9)%


0.6%


1.2%










Wound Care/Other









SPLENDA ®


2.6






0.5

 U.S. 


6.5






1.0

 International 


0.3






0.1










Wound Care / Other









BENECOL ®


0.3






0.1

 U.S. 


0.1






0.0

 International 


0.5






0.1










Diagnostics









Ortho-Clinical Diagnostics






(0.3)


(0.1)

 U.S. 






0.0


0.0

 International 






(0.5)


(0.2)










Cardiovascular









Cordis






2.6


0.9

 U.S. 






1.3


0.5

 International 






3.6


1.3










Other Neuroscience









NUCYNTA ®




0.5




0.2

 U.S. 




1.1




0.5

 International 




0.0




0.0










All Other Acquisitions and Divestitures






0.1


0.1

 U.S. 






0.0


0.0

 International 






0.2


0.1










WW Ops excluding Acquisitions and Divestitures


4.7%


7.0%


5.8%


6.1%

 U.S. 


1.7%


13.8%


8.0%


10.0%

 International 


6.3%


(0.9)%


3.9%


2.6%










Hepatitis C




4.1




1.7

 U.S. 




7.2




3.4

 International 




0.7




0.3










WW Ops excluding Hepatitis C only




10.6%




6.1%

 U.S. 




19.9%




11.4%

 International 




(0.2)%




1.5%










WW Ops excluding Acquisitions, Divestitures and Hepatitis C


4.7%


11.1%


5.8%


7.8%

 U.S. 


1.7%


21.0%


8.0%


13.4%

 International 


6.3%


(0.2)%


3.9%


2.9%










(1) Hepatitis C products include OLYSIO ®/SOVRIAD ®and INCIVO ®









(2) Operational growth excludes the effect of translational currency









 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions, Divestitures and Hepatitis C Sales (1)

 TWELVE MONTHS 2015 ACTUAL vs. 2014 ACTUAL 










 Segments 



 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total  



Operational % (2)

 WW As Reported: 


2.7%


4.2%


(1.4)%


1.8%

 U.S. 


2.5%


5.2%


(1.0)%


2.6%

 International 


2.7%


3.0%


(1.7)%


1.1%










Wound Care/Other









SPLENDA ®


0.6






0.1

 U.S. 


1.7






0.2

 International 


0.1






0.0










Women's Health









K-Y ®


0.3






0.1

 U.S. 


0.4






0.1

 International 


0.2






0.0










Wound Care / Other









BENECOL ®


0.6






0.1

 U.S. 


0.0






0.0

 International 


0.9






0.2










Diagnostics









Ortho-Clinical Diagnostics






3.2


1.2

 U.S. 






3.9


1.4

 International 






2.6


1.0










Cardiovascular









Cordis






0.6


0.3

 U.S. 






0.4


0.2

 International 






0.9


0.4










Other Neuroscience









NUCYNTA ®




0.3




0.2

 U.S. 




0.6




0.3

 International 




0.0




0.0










All Other Acquisitions and Divestitures


(0.1)




0.1


0.0

 U.S. 


0.0




0.0


0.0

 International 


(0.1)




0.2


0.1










WW Ops excluding Acquisitions and Divestitures


4.1%


4.5%


2.5%


3.8%

 U.S. 


4.6%


5.8%


3.3%


4.8%

 International 


3.8%


3.0%


2.0%


2.8%










Hepatitis C




6.5




2.7

 U.S. 




12.3




5.8

 International 




0.3




0.2










WW Ops excluding Hepatitis C only




10.7%




4.5%

 U.S. 




17.5%




8.4%

 International 




3.3%




1.3%










WW Ops excluding Acquisitions, Divestitures and Hepatitis C


4.1%


11.0%


2.5%


6.5%

 U.S. 


4.6%


18.1%


3.3%


10.6%

 International 


3.8%


3.3%


2.0%


3.0%










(1) Hepatitis C products include OLYSIO ® /SOVRIAD ® and INCIVO ®









(2) Operational growth excludes the effect of translational currency









 

 


REPORTED SALES vs. PRIOR PERIOD ($MM)



FOURTH QUARTER


TWELVE MONTHS







% Change






% Change




2015


2014

Reported

Operational (1)

Currency



2015


2014

Reported

Operational (1)

Currency


CONSUMER SEGMENT (2)

















BABY CARE

















US


$       103


96

7.3%

7.3%

-



$       421


407

3.4%

3.4%

-


Intl


381


428

-11.0%

2.8%

-13.8%



1,623


1,832

-11.4%

0.7%

-12.1%


WW


484


524

-7.6%

3.7%

-11.3%



2,044


2,239

-8.7%

1.2%

-9.9%


ORAL CARE

















US


170


150

13.3%

13.3%

-



629


600

4.8%

4.8%

-


Intl


238


264

-9.8%

5.2%

-15.0%



951


1,047

-9.2%

5.5%

-14.7%


WW


408


414

-1.4%

8.2%

-9.6%



1,580


1,647

-4.1%

5.2%

-9.3%


OTC

















US


382


362

5.5%

5.5%

-



1,536


1,357

13.2%

13.2%

-


Intl


663


711

-6.8%

9.4%

-16.2%



2,439


2,749

-11.3%

5.5%

-16.8%


WW


1,045


1,073

-2.6%

8.2%

-10.8%



3,975


4,106

-3.2%

8.1%

-11.3%


SKIN CARE

















US


439


471

-6.8%

-6.8%

-



1,857


1,834

1.3%

1.3%

-


Intl


432


485

-10.9%

4.6%

-15.5%



1,674


1,924

-13.0%

1.2%

-14.2%


WW


871


956

-8.9%

-1.1%

-7.8%



3,531


3,758

-6.0%

1.3%

-7.3%


WOMEN'S HEALTH

















US


7


7

0.0%

0.0%

-



26


50

-48.0%

-48.0%

-


Intl


276


301

-8.3%

7.5%

-15.8%



1,174


1,252

-6.2%

9.8%

-16.0%


WW


283


308

-8.1%

7.4%

-15.5%



1,200


1,302

-7.8%

7.6%

-15.4%


WOUND CARE / OTHER

















US


130


208

-37.5%

-37.5%

-



753


848

-11.2%

-11.2%

-


Intl


99


123

-19.5%

-8.4%

-11.1%



424


596

-28.9%

-18.3%

-10.6%


WW


229


331

-30.8%

-26.7%

-4.1%



1,177


1,444

-18.5%

-14.1%

-4.4%



















TOTAL CONSUMER

















US


1,231


1,294

-4.9%

-4.9%

-



5,222


5,096

2.5%

2.5%

-


Intl


2,089


2,312

-9.6%

5.5%

-15.1%



8,285


9,400

-11.9%

2.7%

-14.6%


WW


$    3,320


3,606

-7.9%

1.8%

-9.7%



$  13,507


14,496

-6.8%

2.7%

-9.5%





































REPORTED SALES vs. PRIOR PERIOD ($MM)



FOURTH QUARTER


TWELVE MONTHS







% Change






% Change




2015


2014

Reported

Operational (1)

Currency



2015


2014

Reported

Operational (1)

Currency


PHARMACEUTICAL SEGMENT (2) (3)

















IMMUNOLOGY

















US


$    2,101


1,816

15.7%

15.7%

-



$    7,642


7,111

7.5%

7.5%

-


Intl


670


762

-12.1%

2.0%

-14.1%



2,760


3,082

-10.4%

5.5%

-15.9%


WW


2,771


2,578

7.5%

11.7%

-4.2%



10,402


10,193

2.1%

6.9%

-4.8%


   REMICADE

















   US 


1,193


1,052

13.4%

13.4%

-



4,453


4,155

7.2%

7.2%

-


   US Exports (4)


180


244

-26.2%

-26.2%

-



782


1,078

-27.5%

-27.5%

-


   Intl


307


376

-18.4%

-3.9%

-14.5%



1,326


1,635

-18.9%

-4.7%

-14.2%


   WW


1,680


1,672

0.5%

3.8%

-3.3%



6,561


6,868

-4.5%

-1.1%

-3.4%


   SIMPONI / SIMPONI ARIA

















   US


204


164

24.4%

24.4%

-



730


544

34.2%

34.2%

-


   Intl


136


182

-25.3%

-14.8%

-10.5%



598


643

-7.0%

10.2%

-17.2%


   WW


340


346

-1.7%

3.8%

-5.5%



1,328


1,187

11.9%

21.2%

-9.3%


   STELARA

















   US


524


356

47.2%

47.2%

-



1,677


1,334

25.7%

25.7%

-


   Intl


218


189

15.3%

32.4%

-17.1%



797


738

8.0%

27.0%

-19.0%


   WW


742


545

36.1%

42.0%

-5.9%



2,474


2,072

19.4%

26.2%

-6.8%


   OTHER IMMUNOLOGY

















   US


-


-

-

-

-



-


-

-

-

-


   Intl


9


15

-40.0%

-27.7%

-12.3%



39


66

-40.9%

-30.6%

-10.3%


   WW


9


15

-40.0%

-27.7%

-12.3%



39


66

-40.9%

-30.6%

-10.3%


INFECTIOUS DISEASES

















US


363


564

-35.6%

-35.6%

-



1,535


3,112

-50.7%

-50.7%

-


Intl


438


512

-14.5%

-3.6%

-10.9%



2,121


2,487

-14.7%

1.2%

-15.9%


WW


801


1,076

-25.6%

-20.4%

-5.2%



3,656


5,599

-34.7%

-27.6%

-7.1%


   EDURANT

















   US


12


6

100.0%

100.0%

-



41


24

70.8%

70.8%

-


   Intl


95


84

13.1%

29.3%

-16.2%



369


341

8.2%

29.2%

-21.0%


   WW


107


90

18.9%

34.0%

-15.1%



410


365

12.3%

31.9%

-19.6%


   OLYSIO / SOVRIAD

















   US


(1)


256

**

**

-



173


1,943

-91.1%

-91.1%

-


   Intl


45


65

-30.8%

-27.0%

-3.8%



448


359

24.8%

49.1%

-24.3%


   WW


44


321

-86.3%

-85.5%

-0.8%



621


2,302

-73.0%

-69.2%

-3.8%


   PREZISTA / PREZCOBIX / REZOLSTA

















   US


287


243

18.1%

18.1%

-



1,064


930

14.4%

14.4%

-


   Intl


180


205

-12.2%

-0.2%

-12.0%



746


901

-17.2%

-1.6%

-15.6%


   WW


467


448

4.2%

9.7%

-5.5%



1,810


1,831

-1.1%

6.6%

-7.7%


   OTHER INFECTIOUS DISEASES

















   US


65


59

10.2%

10.2%

-



257


215

19.5%

19.5%

-


   Intl


118


158

-25.3%

-15.6%

-9.7%



558


886

-37.0%

-26.2%

-10.8%


   WW


183


217

-15.7%

-8.7%

-7.0%



815


1,101

-26.0%

-17.3%

-8.7%



















See footnotes at end of schedule


















REPORTED SALES vs. PRIOR PERIOD ($MM)



FOURTH QUARTER


TWELVE MONTHS







% Change






% Change




2015


2014

Reported

Operational (1)

Currency



2015


2014

Reported

Operational (1)

Currency



















NEUROSCIENCE

















US


752


645

16.6%

16.6%

-



2,850


2,452

16.2%

16.2%

-


Intl


849


1,006

-15.6%

-4.2%

-11.4%



3,409


4,035

-15.5%

-1.8%

-13.7%


WW


1,601


1,651

-3.0%

3.9%

-6.9%



6,259


6,487

-3.5%

5.0%

-8.5%


   CONCERTA / METHYLPHENIDATE

















   US


117


55

*

*

-



434


152

*

*

-


   Intl


96


114

-15.8%

-4.0%

-11.8%



387


447

-13.4%

-0.3%

-13.1%


   WW


213


169

26.0%

33.9%

-7.9%



821


599

37.1%

46.9%

-9.8%


   INVEGA / PALIPERIDONE

















   US


58


96

-39.6%

-39.6%

-



339


360

-5.8%

-5.8%

-


   Intl


55


65

-15.4%

-5.6%

-9.8%



234


280

-16.4%

-2.9%

-13.5%


   WW


113


161

-29.8%

-25.9%

-3.9%



573


640

-10.5%

-4.6%

-5.9%


   INVEGA SUSTENNA / XEPLION / INVEGA
   TRINZA

















   US


327


226

44.7%

44.7%

-



1,085


825

31.5%

31.5%

-


   Intl


197


192

2.6%

17.7%

-15.1%



745


763

-2.4%

14.9%

-17.3%


   WW


524


418

25.4%

32.4%

-7.0%



1,830


1,588

15.2%

23.5%

-8.3%


   RISPERDAL CONSTA

















   US


103


104

-1.0%

-1.0%

-



409


427

-4.2%

-4.2%

-


   Intl


131


190

-31.1%

-21.2%

-9.9%



561


763

-26.5%

-12.9%

-13.6%


   WW


234


294

-20.4%

-14.0%

-6.4%



970


1,190

-18.5%

-9.8%

-8.7%


   OTHER NEUROSCIENCE

















   US


147


164

-10.4%

-10.4%

-



583


688

-15.3%

-15.3%

-


   Intl


370


445

-16.9%

-6.3%

-10.6%



1,482


1,782

-16.8%

-4.5%

-12.3%


   WW


517


609

-15.1%

-7.4%

-7.7%



2,065


2,470

-16.4%

-7.5%

-8.9%


ONCOLOGY

















US


457


334

36.8%

36.8%

-



1,547


1,157

33.7%

33.7%

-


Intl


816


878

-7.1%

6.5%

-13.6%



3,148


3,300

-4.6%

12.2%

-16.8%


WW


1,273


1,212

5.0%

14.8%

-9.8%



4,695


4,457

5.3%

17.7%

-12.4%


   IMBRUVICA

















   US


122


64

90.6%

90.6%

-



375


145

*

*

-


   Intl


113


28

*

*

**



314


55

*

*

**


   WW


235


92

*

*

**



689


200

*

*

**


   VELCADE

















   US


-


-

-

-

-



-


-

-

-

-


   Intl


321


418

-23.2%

-13.5%

-9.7%



1,333


1,618

-17.6%

-4.2%

-13.4%


   WW


321


418

-23.2%

-13.5%

-9.7%



1,333


1,618

-17.6%

-4.2%

-13.4%


   ZYTIGA

















   US


286


255

12.2%

12.2%

-



1,070


971

10.2%

10.2%

-


   Intl


295


340

-13.2%

0.2%

-13.4%



1,161


1,266

-8.3%

9.0%

-17.3%


   WW


581


595

-2.4%

5.3%

-7.7%



2,231


2,237

-0.3%

9.5%

-9.8%


   OTHER ONCOLOGY

















   US


49


15

*

*

-



102


41

*

*

-


   Intl


87


92

-5.4%

10.3%

-15.7%



340


361

-5.8%

11.2%

-17.0%


   WW


136


107

27.1%

40.5%

-13.4%



442


402

10.0%

25.2%

-15.2%


CARDIOVASCULAR / METABOLISM /
OTHER (5)

















US


1,237


997

24.1%

24.1%

-



4,759


3,600

32.2%

32.2%

-


Intl


381


485

-21.4%

-9.8%

-11.6%



1,659


1,977

-16.1%

-3.9%

-12.2%


WW


1,618


1,482

9.2%

13.0%

-3.8%



6,418


5,577

15.1%

19.4%

-4.3%


   XARELTO

















   US


494


428

15.4%

15.4%

-



1,868


1,522

22.7%

22.7%

-


   Intl


-


-

-

-

-



-


-

-

-

-


   WW


494


428

15.4%

15.4%

-



1,868


1,522

22.7%

22.7%

-


   INVOKANA / INVOKAMET

















   US


348


193

80.3%

80.3%

-



1,238


569

*

*

-


   Intl


24


8

*

*

**



70


17

*

*

**


   WW


372


201

85.1%

87.1%

-2.0%



1,308


586

*

*

**


   PROCRIT / EPREX

















   US


173


177

-2.3%

-2.3%

-



692


715

-3.2%

-3.2%

-


   Intl


87


125

-30.4%

-20.0%

-10.4%



376


523

-28.1%

-15.8%

-12.3%


   WW


260


302

-13.9%

-9.6%

-4.3%



1,068


1,238

-13.7%

-8.5%

-5.2%


   OTHER

















   US


222


199

11.6%

11.6%

-



961


794

21.0%

21.0%

-


   Intl


270


352

-23.3%

-12.1%

-11.2%



1,213


1,437

-15.6%

-4.1%

-11.5%


   WW


492


551

-10.7%

-3.5%

-7.2%



2,174


2,231

-2.6%

4.8%

-7.4%



















TOTAL PHARMACEUTICAL

















US


4,910


4,356

12.7%

12.7%

-



18,333


17,432

5.2%

5.2%

-


Intl


3,154


3,643

-13.4%

-0.9%

-12.5%



13,097


14,881

-12.0%

3.0%

-15.0%


WW


$    8,064


7,999

0.8%

6.5%

-5.7%



$  31,430


32,313

-2.7%

4.2%

-6.9%



















See footnotes at end of schedule


















REPORTED SALES vs. PRIOR PERIOD ($MM)



FOURTH QUARTER


TWELVE MONTHS







% Change






% Change




2015


2014

Reported

Operational (1)

Currency



2015


2014

Reported

Operational (1)

Currency


MEDICAL DEVICES (2) (3)

















CARDIOVASCULAR

















US


$       229


222

3.2%

3.2%

-



$       931


862

8.0%

8.0%

-


Intl


210


336

-37.5%

-29.4%

-8.1%



1,105


1,346

-17.9%

-5.3%

-12.6%


WW


439


558

-21.3%

-16.4%

-4.9%



2,036


2,208

-7.8%

-0.1%

-7.7%


DIABETES CARE

















US


202


206

-1.9%

-1.9%

-



833


864

-3.6%

-3.6%

-


Intl


278


308

-9.7%

5.0%

-14.7%



1,095


1,278

-14.3%

1.3%

-15.6%


WW


480


514

-6.6%

2.2%

-8.8%



1,928


2,142

-10.0%

-0.7%

-9.3%


DIAGNOSTICS (6)

















US


-


-

-

-

-



-


456

**

**

-


Intl


24


14

71.4%

**

**



86


506

-83.0%

**

**


WW


24


14

71.4%

**

**



86


962

-91.1%

**

**


ORTHOPAEDICS

















US 


1,438


1,339

7.4%

7.4%

-



5,380


5,197

3.5%

3.5%

-


Intl


985


1,102

-10.6%

1.0%

-11.6%



3,882


4,478

-13.3%

-0.3%

-13.0%


WW


2,423


2,441

-0.7%

4.5%

-5.2%



9,262


9,675

-4.3%

1.7%

-6.0%


   HIPS

















   US


213


194

9.8%

9.8%

-



781


745

4.8%

4.8%

-


   Intl


141


156

-9.6%

2.3%

-11.9%



551


623

-11.6%

1.1%

-12.7%


   WW


354


350

1.1%

6.4%

-5.3%



1,332


1,368

-2.6%

3.2%

-5.8%


   KNEES

















   US


254


236

7.6%

7.6%

-



916


878

4.3%

4.3%

-


   Intl


151


165

-8.5%

2.4%

-10.9%



580


655

-11.5%

0.7%

-12.2%


   WW


405


401

1.0%

5.5%

-4.5%



1,496


1,533

-2.4%

2.8%

-5.2%


   TRAUMA

















   US


379


352

7.7%

7.7%

-



1,462


1,418

3.1%

3.1%

-


   Intl


265


287

-7.7%

4.6%

-12.3%



1,066


1,222

-12.8%

0.6%

-13.4%


   WW


644


639

0.8%

6.3%

-5.5%



2,528


2,640

-4.2%

2.0%

-6.2%


   SPINE & OTHER

















   US


592


557

6.3%

6.3%

-



2,221


2,156

3.0%

3.0%

-


   Intl


428


494

-13.4%

-2.1%

-11.3%



1,685


1,978

-14.8%

-1.8%

-13.0%


   WW


1,020


1,051

-2.9%

2.4%

-5.3%



3,906


4,134

-5.5%

0.7%

-6.2%


SURGERY

















US


1,044


992

5.2%

5.2%

-



3,991


3,900

2.3%

2.3%

-


Intl


1,369


1,484

-7.7%

4.4%

-12.1%



5,226


5,817

-10.2%

2.9%

-13.1%


WW


2,413


2,476

-2.5%

4.7%

-7.2%



9,217


9,717

-5.1%

2.7%

-7.8%


   ADVANCED

















   US


384


352

9.1%

9.1%

-



1,430


1,342

6.6%

6.6%

-


   Intl


486


497

-2.2%

10.1%

-12.3%



1,845


1,895

-2.6%

10.8%

-13.4%


   WW


870


849

2.5%

9.7%

-7.2%



3,275


3,237

1.2%

9.1%

-7.9%


   GENERAL

















   US


430


432

-0.5%

-0.5%

-



1,702


1,717

-0.9%

-0.9%

-


   Intl


717


821

-12.7%

-1.3%

-11.4%



2,780


3,253

-14.5%

-1.9%

-12.6%


   WW


1,147


1,253

-8.5%

-1.0%

-7.5%



4,482


4,970

-9.8%

-1.5%

-8.3%


   SPECIALTY

















   US


230


208

10.6%

10.6%

-



859


841

2.1%

2.1%

-


   Intl


166


166

0.0%

14.6%

-14.6%



601


669

-10.2%

4.3%

-14.5%


   WW


396


374

5.9%

12.4%

-6.5%



1,460


1,510

-3.3%

3.1%

-6.4%


VISION CARE

















US


239


195

22.6%

22.6%

-



997


975

2.3%

2.3%

-


Intl


409


451

-9.3%

2.3%

-11.6%



1,611


1,843

-12.6%

1.5%

-14.1%


WW


648


646

0.3%

8.4%

-8.1%



2,608


2,818

-7.5%

1.7%

-9.2%



















TOTAL MEDICAL DEVICES

















US


3,152


2,954

6.7%

6.7%

-



12,132


12,254

-1.0%

-1.0%

-


Intl


3,275


3,695

-11.4%

0.6%

-12.0%



13,005


15,268

-14.8%

-1.7%

-13.1%


WW


$    6,427


6,649

-3.3%

3.4%

-6.7%



$  25,137


27,522

-8.7%

-1.4%

-7.3%




































* Percentage greater than 100%

















** Not meaningful

















(1) Operational growth excludes the effect of translational currency













(2) Unaudited

















(3) Prior year amounts have been reclassified to conform to current year product disclosure











(4) Reported as U.S. sales

















(5) Previously referred to as Other

















(6) Reflects Diagnostics divestiture June 30, 2014
































 

 

SOURCE Johnson & Johnson



RELATED LINKS

http://www.jnj.com