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