Five Year Historical Financial Review (1)

7/25/2019 Five Year Historical Financial Review (1)

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2014 Historical

Financial

Review


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heHistorical Financial Review is

prepared once per year and is

available on line atwww.investor.jnj.com.

It is intended to supplement the AnnualReport and other SEC filings and be used

primarily by financial analysts to assist in a

detailed financial analysis. While this

document does include abbreviated

financial statements, it is not a substitute

for the more detailed financial statements

(including footnotes) found in the Annual

Report and other SEC filings.

We appreciate your comments and

suggestions on ways to improve this

document and will attempt to incorporate

them into future editions.

Index Page

T

Introduction 1

Five Year Selected Financial Data 2

Description of Major Business Franchises 3

Balance Sheets, Statements of Earnings, Statements of Cash Flows 4-6

Segments of Business Information 7-8Geographical Areas 9

Sales Growth Rates 10

Quarterly Sales and Earnings Information 11-14

Sales and Net Earnings 1887-2014 15

Stock Split and Share Repurchase Information 16

Common Stock Information 1944-2014 17-18

Reconciliation of Non-GAAP Measures 19

Corporate and Shareholder/Investor Information 20

Historical Financial Review

1
http://www.investor.jnj.com./http://www.investor.jnj.com./http://www.investor.jnj.com./http://www.investor.jnj.com./


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Johnson & Johnson and Subsidiaries:

Five-Year Selected Financial Data 2010-2014

(Dollars in Millions Except Per Share Figu

Operating Results 2014(1)

2013(1)

2012(1)

2011(1)

2010(1)

Sales to customers 74,331$ 71,312 67,224 65,030 61,587

Earnings before provision for taxes on income 20,563 15,471 13,775 12,361 16,947

Net earnings attributable to J&J (2) 16,323 13,831 10,853 9,672 13,334

Basic net earnings per share 5.80 4.92 3.94 3.54 4.85Diluted net earnings per share 5.70 4.81 3.86 3.49 4.78

Statistics

Before tax margin 27.7 % 21.7 % 20.5 19.0 27.5

Net profit margin(2)

22.0 19.4 16.1 14.9 21.7

Effective tax rate 20.6 10.6 23.7 21.8 21.3

Return on average shareholders' equity 22.7 19.9 17.8 17.0 24.9

Return on total assets 12.4 % 10.4 % 8.9 8.5 13.0

Capital Structu re

Cash and Current Marketable Securities 33,089$ 29,206 21,089 32,261 27,658

Debt 18,760 18,180 16,165 19,627 16,773

Equity 69,752 74,053 64,826 57,080 56,579

Total capital 88,512 92,233 80,991 76,707 73,352

Net cash/(debt) 14,329$ 11,026 4,924 12,634 10,885

Total debt/total capital 21.2 % 19.7 % 20.0 25.6 22.9

Common Stock Information

Dividends paid per share 2.760$ 2.590 2.400 2.250 2.110

Shareholders' equity per share 25.06 26.25 23.33 20.95 20.66

Market price per share (year end close) 105.06 92.35 69.48 65.58 61.85

Average shares outstanding (mm) - basic 2,815.2 2,809.2 2,753.3 2,736.0 2,751.4

- diluted 2,863.9 2,877.0 2,812.6 2,775.3 2,788.8Cash dividends 7,768$ 7,286 6,614 6,156 5,804

Other Data

Total assets 131,119$ 132,683 121,347 113,644 102,908

Research & development expense 8,494 8,183 7,665 7,548 6,844

Capital expenditures 3,714 3,595 2,934 2,893 2,384

Number of employees (thousands) 126.5 128.1 127.6 117.9 114.0

(1) For Adjusted earnings (before and after tax) and adjusted earnings per share, see Reconciliation of Non-GAAP Measures on Page 19.

(2) After noncontrolling interests

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Consumer Segment

Worldwide Consumer sales of $14.5 billion for the fullyear

2014 represented an operational increase of 1.0 percent.

Excluding the net impact of acquisitions and divestitures, on

an operational basis, worldwide sales increased 2.8 percent.

Positive contributors to operational results were sales of

TYLENOLand MOTRINanalgesics and ZYRTECallergy over-

the-counter products; AVEENOand NEUTROGENAskin care

products; and LISTERINEoral care products.

During the year, we launched several new products including

Womens ROGAINE, ZYRTECdissolve tabs and several new

formulations of LISTERINE, and re-launched brands such as

TYLENOLPM. Our insight-driven innovation in the Consumer

business is focused on addressing key consumer need states,

led by our 12 megabrands, with 20 new product launches

planned for 2015.

Medical Devices SegmentWorldwide Medical Devices sales of $27.5 billion for the full-

year 2014 represented an operational decrease of

1.6 percent. Excluding the net impact of acquisitions and

divestitures, on an operational basis, worldwide sales

increased 1.6 percent.

The Medical Devices business holds a strong leadership

position in the industry, including 10 platforms with more

than $1 billion in sales. Weve launched over 50 major new

products since 2012, and have more than 30 major new

filings planned by the end of 2016.

Primary contributors to operational growth were our broadportfolio of Orthopaedic products; Biosense Websters

electrophysiology products in the Cardiovascular Care

business; and biosurgicals and international sales of energy

products in the Specialty Surgery business. Sales results in the

Vision Care and U.S. Diabetes Care businesses were

negatively impacted by competitive pricing dynamics.

Key approvals and launches during the year include

U.S. Food and Drug Administration (FDA) approval for the

Animas Vibe insulin pump and Continuous

Glucose Monitoring system for the management of insulin-

requiring diabetes in adults ages 18 and older; the INCRAFTAAA Stent Graft System was approved and launched for

treatment of abdominal aortic aneurysms (AAA) in Europe

and Canada; the SABER PTA Dilatation Catheter for the

treatment of patients with Peripheral Arterial Disease

received FDA and European Commission approval; and the

FDA approved the THERMOCOOL SMARTTOUCH Catheter

for treatment of patients suffering from drug-resistant

paroxysmal atrial fibrillation.

On June 30, 2014, the Company completed the divestiture of

its Ortho-Clinical Diagnostics business to The Carlyle Group

for approximately $4 billion.

Pharmaceutical Segment

Worldwide Pharmaceutical sales of $32.3 billion for the full-

year 2014 represented operational growth of 16.5 percent.

With 14 new medicines launched since 2009, our

Pharmaceutical segment is the fastest growing of the top 10

pharmaceutical businesses in the U.S., Europe and Japan*,

and our medicines are making a dramatic impact.

The strong sales results were driven by new products and the

strength of our core products. New products include

OLYSIO/SOVRIAD (simeprevir), for combination treatment

of chronic hepatitis C in adult patients; XARELTO

(rivaroxaban), an oral anticoagulant; ZYTIGA (abiraterone

acetate), an oral, once-daily medication for use in

combination with prednisone for the treatment of metastatic,

castration-resistant prostate cancer; INVOKANA

(canagliflozin), for the treatment of adults with type 2

diabetes; and IMBRUVICA (ibrutinib), an oral, once-daily

therapy approved for use in treating certain B-cell

malignancies, or blood cancers. 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 (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the

treatment of schizophrenia in adults; SIMPONI/SIMPONI

ARIA (golimumab) and REMICADE (infliximab), biologics

approved for the treatment of a number of immunemediated

inflammatory diseases.

When it comes to innovation and ensuring we have

continuous access to new ideas and products at their earliest

stages, we expect the best science to prevail regardless of

whether that comes from sources inside or outside of

Johnson & Johnson. In 2014, we made two significant

acquisitions to add to our innovation portfolio: Alios

BioPharma, Inc., a privately-held clinical stage

biopharmaceutical company focused on developing therapies

for viral diseases; and Covagen AG, a privatelyheld

biopharmaceutical company specializing in the development

of multispecific protein therapeutics through the FynomAb

technology platform.

Description of Major Business Franchises

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Consolidated Balance Sheets

Assets 2014 2013 2012

Current assets

Cash and cash equivalents 14,523$ 20,927 14,911

Marketable securities 18,566 8,279 6,178Accounts receivable trade, less allowance for doubtful accounts 10,985 11,713 11,309

Inventories 8,184 7,878 7,495Other current assets 7,053 7,610 6,223Total current assets 59,311 56,407 46,116

Property, plant and equipment, net 16,126 16,710 16,097Intangible assets, net and Goodwill 49,054 50,745 51,176Other non-current assets 6,628 8,821 7,958

Total assets 131,119$ 132,683 121,347

Liabilities and Shareholders' Equity

Current liabilities

Loans and notes payable 3,638$ 4,852 4,676Accounts payable 7,633 6,266 5,831

Accrued liabilities 13,314 13,787 12,691Accrued taxes on income 500 770 1,064

Total cu rrent liabilities 25,085 25,675 24,262

Long-term debt 15,122 13,328 11,489Other long-term liabilities 21,160 19,627 20,770Total liabilities 61,367 58,630 56,521

Shareholders' equity

Common stock 3,120 3,120 3,120Accumulated other comprehensive income (10,722) (2,860) (5,810)Retained earnings 97,245 89,493 85,992

89,643 89,753 83,302

Less: common stock held in treasury, at cost 19,891 15,700 18,476

Total shareholders' equity 69,752$ 74,053 64,826

Total liabilit ies and shareholders' equity 131,119$ 132,683 121,347

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Consolidated Statements of Earnings

2014(1)

2013(1)

2012(1)

2011(1)

2010(1)

Sales to customers 74,331$ 71,312$ 67,224$ 65,030$ 61,587$

Cost of products sold 22,746 22,342 21,658 20,360 18,792

Gross profit 51,585 48,970 45,566 44,670 42,795

Selling, marketing and administrative expenses 21,954 21,830 20,869 20,969 19,424Research and development expense 8,494 8,183 7,665 7,548 6,844

In-process research and development 178 580 1,163 - -

Interest income (67) (74) (64) (91) (107)

Interest expense, net of portion capitalized 533 482 532 571 455

Other (income) expense, net (70) 2,498 1,626 2,743 (768)

Restructuring - - 569 -

Earnings before provision for taxes on income 20,563 15,471 13,775 12,361 16,947

Provision for taxes on income 4,240 1,640 3,261 2,689 3,613

Net earnings 16,323 13,831 10,514 9,672 13,334

Add: Net loss attributable to noncontrolling interests - - 339 - -

Net earnings attributable to Johnson & Johns on 16,323 13,831 10,853 9,672 13,334

Basic net earnings per share attributable to J&J 5.80 4.92 3.94 3.54 4.85

Diluted net earnings per share attributable to J&J 5.70$ 4.81$ 3.86$ 3.49$ 4.78$

Ratios to Sales

Sales to customers 100.0% 100.0% 100.0% 100.0% 100.0%Cost of products sold 30.6 31.3 32.2 31.3 30.5

Gross profit 69.4 68.7 67.8 68.7 69.5Selling, marketing & administrative expense 29.5 30.6 31.0 32.3 31.5Research and development expense 11.4 11.5 11.4 11.6 11.1

Earnings before provision for taxes on income 27.7 21.7 20.5 19.0 27.5

Provision for taxes on income 5.7 2.3 4.9 4.1 5.8Net earnings attributable to Johnson & Johnson 22.0 19.4 16.1 14.9 21.7

(1) For adjusted earnings (before and after tax) and adjusted earnings per share, see Reconciliation of Non-GAAP Measures on Page 19.

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Consolidated Statements of Cash Flows

2014 2013 2012Cash flows from op erations

Net earnings 16,323$ 13,831 10,514Adjustments to reconcile net earnings to cash flows: Depreciation and amortization of property and intangibles 3,895 4,104 3,666

Stock Based Compensation 792 728 662Noncontrolling interest - - 339

Venezuela adjustments 87 108 -Asset write-downs 410 739 2,131Net gain on sale of assets/businesses (2,383) (113) (908)Net gain on equity investment transactions - (417) -Deferred tax provision 441 (607) (39)Accounts receivable allowances (28) (131) 92

Changes in assets and liabilities, net of effects from acquisitions: (Increase) in accounts receivable (247) (632) (9)

(Increase) in inventories (1,120) (622) (1)Increase in accounts payable and accrued liabilities 955 1,821 2,768Decrease/(Increase) in other current and non-current assets 442 (1,693) (1,264)(Decrease)/Increase in other current and non-current liabilities (1,096) 298 (2,555)

Net cash flows from operating activities 18,471 17,414 15,396

Cash flows from investing activities

Additions to property, plant and equipment (3,714) (3,595) (2,934)Proceeds from the disposal of assets / businesses, net 4,631 458 1,509Acquisitions, net of cash acquired (2,129) (835) (4,486)Purchases of investments (34,913) (18,923) (13,434)Sales of investments 24,119 18,058 14,797Other (299) (266) 38Net cash used by investing activities (12,305) (5,103) (4,510)

Cash flows from fin ancing activities

Dividends to shareholders (7,768) (7,286) (6,614)Repurchase of common stock (7,124) (3,538) (12,919)Proceeds from short-term debt 1,863 1,411 3,268Retirement of short-term debt (1,267) (1,397) (6,175)Proceeds from long-term debt 2,098 3,607 45Retirement of long-term debt (1,844) (1,593) (804)Proceeds from the exercise of stock options/excess tax benefits 1,782 2,649 2,720

Other - 56 (83)Net cash used by financing activities (12,260) (6,091) (20,562)

Effect of exchange rate changes on cash and cash equivalents (310) (204) 45(Decrease)/Increase in cash and cash equivalents (6,404) 6,016 (9,631)Cash and cash equivalents, beginning of year 20,927 14,911 24,542Cash and cash equivalents, end of year 14,523$ 20,927 14,911

Supplemental cash flow data

Cash paid during the year for: Interest 603$ 596 616

Interest, net of amount capitalized 488 491 501Income taxes 3,536 3,155 2,507

Supplemental schedule of non-cash investing and financing activities

Issuance of common stock associated with the acquisition of Synthes, Inc. -$ - 13,335

Treasury stock issued for employee compensation and stock option plans, net of cash proceeds 1,170 743 615Conversion of debt 17 22 -

Acq uisi tion of businesses

Fair value of assets acquired 2,167$ 1,028 19,025Fair value of liabilities assumed and noncontrolling interests (38) (193) (1,204)Net fair value of acquisitions 2,129$ 835 17,821Less: Issuance of common stock associated with the acquisition of Synthes, Inc. - - 13,335

Net cash paid for acquisitions 2,129$ 835 4,486

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Segments of Business

Sales to Customers 2014(1)

2013(2)

2012(3)

2011(4)

2010(5)

Consumer United States 5,096$ 5,162 5,046 5,151 5,519International 9,400 9,535 9,401 9,732 9,071Total 14,496 14,697 14,447 14,883 14,590

Pharmaceutical United States 17,432 13,948 12,421 12,386 12,519International 14,881 14,177 12,930 11,982 9,877Total 32,313 28,125 25,351 24,368 22,396

Medical Devices United States 12,254 12,800 12,363 11,371 11,412International 15,268 15,690 15,063 14,408 13,189Total 27,522 28,490 27,426 25,779 24,601

Worldwide United States 34,782 31,910 29,830 28,908 29,450International 39,549 39,402 37,394 36,122 32,137Total 74,331$ 71,312 67,224 65,030 61,587

Pre-Tax Prof it

Consumer 1,941$ 1,973 1,693 2,096 2,342Pharmaceutical 11,696 9,178 6,075 6,406 7,086

Medical Devices 7,953 5,261 7,187 5,263 8,272Segments Total 21,590 16,412 14,955 13,765 17,700

Less: Expenses not allocated to segments(6)

1,027 941 1,180 1,404 753Worldwide Total 20,563$ 15,471 13,775 12,361 16,947

Pre-Tax Profit as % of Segment Sales

Consumer 13.4% 13.4 11.7 14.1 16.1Pharmaceutical 36.2% 32.6 24.0 26.3 31.6Medical Devices 28.9% 18.5 26.2 20.4 33.6Segments Total 29.0% 23.0 22.2 21.2 28.7Worldwide Total 27.7% 21.7 20.5 19.0 27.5

Identifiable Assets

Consumer 21,813$ 23,711 24,131 24,210 23,753Pharmaceutical 25,803 23,783 23,219 23,747 19,961Medical Devices 41,445 44,585 42,926 23,609 23,277

Segments Total 89,061 92,079 90,276 71,566 66,991

General corporate(7)

42,058 40,604 31,071 42,078 35,917Worldwide Total 131,119$ 132,683 121,347 113,644 102,908

(7) General corporate includes cash, cash equivalents & marketable securities.

(1) 2014 pre-tax profit includes net litigation expense of $1,253 million comprised of $907 million, $259 million and $87 million in the Medical Devices, Pharmaceutical

and Consumer segments, respectively. Includes $178 million of in-process research and development expense, comprised of $147 million and $31 million in the

Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment includes a net gain of $1,899 million from the divestiture of the Ortho-

Clinical Diagnostics business, Synthes integration costs of $754 million and $126 million expense for the cost associated with the DePuy ASRTM

Hip program. Includes

an additional year of the Branded Prescription Drug Fee of $220 million in the Pharmaceutical segment.

(2) 2013 pre-tax profit includes $2,276 million of net litigation expense comprised of $1,975 million and $301 million in the Medical Devices and Pharmaceutical

segments, respectively. Includes $683 million of Synthes integration/transaction costs in the Medical Devices segment. Includes $580 million of in-process research and

development expense, comprised of $514 million and $66 million in the Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment also

includes $251 million expense for the cost associated with the DePuy ASR TM Hip program. Includes $98 million of income related to other adjustments comprised of $55

million and $43 million in the Consumer and Pharmaceutical segments, respectively.

(3) 2012 pre-tax profit includes $1,218 million of net litigation expense comprised of $658 million and $560 million in the Pharmaceutical and Medical Devices segments,

respectively. Includes $1,163 million of in-process research and development expense, comprised of $1,111 million and $52 million in the Pharmaceutical and MedicalDevices segments, respectively. Includes $795 million of Synthes integration/transaction costs in the Medical Devices segment. Includes $909 million of asset write-

downs and other adjustments, comprised of $499 million, $264 million and $146 million in the Pharmaceutical, Consumer and Medical Devices segments, respectively.

The Medical Devices segment also includes $110 million expense for the cost associated with the DePuy ASR Hip program.

(4) 2011 pre-tax profit includes $3,310 million of net litigation expense comprised of $1,741 million and $1,569 million in the Pharmaceutical and Medical Devices

segments, respectively. Includes $656 million of net restructuring expense, comprised of $676 million expense in the Medical Devices segment and a gain of $20 million

in the Pharmaceutical segment. The Medical Devices segment also includes $521 million expense for the cost associated with the DePuy ASR Hip program.

(5) 2010 pre-tax profit includes $397 million of net litigation gain comprised of $447 million expense in the Pharmaceutical segment and a gain of $844 million in the

Medical Devices segment. The Medical Devices segment also includes $280 million expense for the cost associated with the DePuy ASR Hip program.

(6) Amounts not allocated to segments include interest (income) expense, noncontrolling interests and general corporate (income) expense. Includes expense of $0.2

billion and $0.5 billion of currency related expense related to the acquisition of Synthes, Inc. in 2012 and 2011, respectively.

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Segments of Business

Add it ions to Property, Plant and Equ ipment 2014 2013 2012 2011 2010

Consumer 581$ 533 468 670 526Pharmaceutical 977 856 737 729 508Medical Devices 1,807 1,724 1,230 1,095 1,113Segments Total 3,365 3,113 2,435 2,494 2,147General corporate 349 482 499 399 237Worldwide Total 3,714$ 3,595 2,934 2,893 2,384

Depreciation & Amortization

Consumer 577$ 539 575 631 532Pharmaceutical 1,053 1,075 1,010 958 912Medical Devices 1,974 2,224 1,857 1,331 1,270Segments Total 3,604 3,838 3,442 2,920 2,714General corporate 291 266 224 238 225Worldwide Total 3,895$ 4,104 3,666 3,158 2,939

Research Expense and Development

Consumer segment 629$ 590 622 659 609

Pharmaceutical segment 6,213 5,810 5,362 5,138 4,432Medical Devices segment 1,652 1,783 1,681 1,751 1,803

Worldwide total 8,494$ 8,183 7,665 7,548 6,844

Research Expense as a Percent of Segment Sales

Consumer segment 4.3% 4.0% 4.3% 4.4% 4.2%Pharmaceutical segment 19.2% 20.7% 21.2% 21.1% 19.8%Medical Devices segment 6.0% 6.3% 6.1% 6.8% 7.3%Worldwide total 11.4% 11.5% 11.4% 11.6% 11.1%

Pharmaceutical Research Expense as a Percent of

total J &J WW Sales 8.4% 8.1% 8.0% 7.9% 7.2%

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Geographical Areas

Sales to Customers 2014 2013 2012 2011 2010

United States 34,782$ 31,910 29,830 28,908 29,450Europe 18,947 18,599 16,945 17,129 15,510Western Hemisphere excluding U.S. 7,160 7,421 7,207 6,418 5,550

Asia-Pacific, Africa 13,442 13,382 13,242 12,575 11,077

Total 74,331$ 71,312 67,224 65,030 61,587

Long-Lived Assets

United States 36,835$ 35,880 35,115 23,529 23,315Europe 21,559 24,868 25,261 19,056 16,791

Western Hemisphere excluding U.S. 3,210 3,281 3,636 3,517 3,653Asia-Pacific, Africa 2,438 2,434 2,362 2,163 2,089

Segments total 64,042 66,463 66,374 48,265 45,848

General corporate 1,138 992 899 750 715

Other non long-lived assets 65,939 65,228 54,074 64,629 56,345

Worldwide total 131,119$ 132,683 121,347 113,644 102,908

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Sales Growth Rates

2014 2013 2012 2011 20

United States 9.0% 7.0% 3.2% -1.8% -4.

Operations 9.0% 7.0% 3.2% -1.8% -4.

International 0.4% 5.4% 3.5% 12.4% 3.

Operations 3.7% 8.2% 8.4% 7.0% 1.

Currency -3.3% -2.8% -4.9% 5.4% 1.

Worldwide 4.2% 6.1% 3.4% 5.6% -0.

Operations 6.1% 7.7% 6.1% 2.8% -1.

Currency -1.9% -1.6% -2.7% 2.8% 0.

Compound Growth Rates

United States Internat ional Worldwide

2009-2014 (5 Yr.) 2.4% 5.0% 3.7%

2004-2014 (10 Yr.) 2.3% 7.3% 4.6%

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Quarterly Sales by Segment (Dollars in Millions)

Year U.S. Int'l WW U.S. Int'l WW

1Q 2010 1,560 2,206 3,766 3,206 2,432 5,638

2Q 2010 1,463 2,184 3,647 3,110 2,443 5,553

3Q 2010 1,277 2,290 3,567 3,054 2,441 5,495

4Q 2010 1,219 2,391 3,610 3,149 2,561 5,710

2010 5,519 9,071 14,590 12,519 9,877 22,396

1Q 2011 1,345 2,337 3,682 3,391 2,668 6,059

2Q 2011 1,339 2,454 3,793 3,239 2,994 6,233

3Q 2011 1,219 2,521 3,740 2,869 3,113 5,982

4Q 2011 1,248 2,420 3,668 2,887 3,207 6,094

2011 5,151 9,732 14,883 12,386 11,982 24,368

1Q 2012 1,316 2,279 3,595 3,026 3,107 6,133

2Q 2012 1,313 2,306 3,619 3,094 3,197 6,291

3Q 2012 1,214 2,367 3,581 3,288 3,114 6,402

4Q 2012 1,203 2,449 3,652 3,013 3,512 6,525

2012 5,046 9,401 14,447 12,421 12,930 25,351

1Q 2013 1,348 2,327 3,675 3,471 3,297 6,768

2Q 2013 1,326 2,332 3,658 3,377 3,648 7,025

3Q 2013 1,225 2,386 3,611 3,549 3,487 7,036

4Q 2013 1,263 2,490 3,753 3,551 3,745 7,296

2013 5,162 9,535 14,697 13,948 14,177 28,125

1Q 2014 1,309 2,248 3,557 3,740 3,758 7,498

2Q 2014 1,320 2,424 3,744 4,613 3,896 8,509

3Q 2014 1,173 2,416 3,589 4,723 3,584 8,307

4Q 2014 1,294 2,312 3,606 4,356 3,643 7,999

2014 5,096 9,400 14,496 17,432 14,881 32,313

Consumer Pharmaceutical

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Quarterly Sales by Segment (Dollars in Millions)

Year U.S. Int'l WW U.S. Int'l WW

1Q 2010 2,886 3,341 6,227 7,652 7,979 15,631

2Q 2010 2,865 3,265 6,130 7,438 7,892 15,330

3Q 2010 2,800 3,120 5,920 7,131 7,851 14,982

4Q 2010 2,861 3,463 6,324 7,229 8,415 15,644

2010 11,412 13,189 24,601 29,450 32,137 61,587

1Q 2011 2,872 3,560 6,432 7,608 8,565 16,173

2Q 2011 2,869 3,702 6,571 7,447 9,150 16,597

3Q 2011 2,780 3,503 6,283 6,868 9,137 16,005

4Q 2011 2,850 3,643 6,493 6,985 9,270 16,255

2011 11,371 14,408 25,779 28,908 36,122 65,030

1Q 2012 2,877 3,534 6,411 7,219 8,920 16,139

2Q 2012 2,953 3,612 6,565 7,360 9,115 16,475

3Q 2012 3,289 3,780 7,069 7,791 9,261 17,052

4Q 2012 3,244 4,137 7,381 7,460 10,098 17,558

2012 12,363 15,063 27,426 29,830 37,394 67,224

1Q 2013 3,206 3,856 7,062 8,025 9,480 17,505

2Q 2013 3,243 3,951 7,194 7,946 9,931 17,877

3Q 2013 3,151 3,777 6,928 7,925 9,650 17,575

4Q 2013 3,200 4,106 7,306 8,014 10,341 18,355

2013 12,800 15,690 28,490 31,910 39,402 71,312

1Q 2014 3,155 3,905 7,060 8,204 9,911 18,115

2Q 2014 3,199 4,043 7,242 9,132 10,363 19,495

3Q 2014 2,946 3,625 6,571 8,842 9,625 18,467

4Q 2014 2,954 3,695 6,649 8,604 9,650 18,254

2014 12,254 15,268 27,522 34,782 39,549 74,331

Medical Devices Total

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Quarterly Statement of Earnings

(Dollars in Millions except per share figures)

Year SalesCost of

Products Sold SM&A R&D

In-process

Research andDevelopment

Net InterestExp. (Inc.)

Other Exp.(Inc.)

1Q 2014 18,115$ 5,455$ 5,183$ 1,831$ 18$ 118$ 86$2Q 2014 19,495 6,039 5,481 2,005 4 114 226

3Q 2014 18,467 5,399 5,468 2,023 - 112 (1,345)

4Q 2014 18,254 5,853 5,822 2,635 156 122 963

2014 74,331$ 22,746$ 21,954$ 8,494$ 178$ 466$ (70)$

Year Sales

Cost of

Products Sold Gross Margin SM&A R&D

In-processResearch and

Development

Net Interest

Exp. (Inc.)

1Q 2014 100.0% 30.1% 69.9% 28.6% 10.1% 0.1% 0.7%

2Q 2014 100.0% 31.0% 69.0% 28.1% 10.3% 0.0% 0.6%

3Q 2014 100.0% 29.2% 70.8% 29.6% 11.0% - 0.6%

4Q 2014 100.0% 32.1% 67.9% 31.9% 14.4% 0.8% 0.7%

2014 100.0% 30.6% 69.4% 29.5% 11.4% 0.3% 0.6%

(1) Net Earnings are GAAP and therefore, do not exclude special items.

Refer to Page 19, Reconciliation of Non-GAAP Measures, for an analysis of 2010-2014 Full Year Adjusted Earnings

Quarterly Statement o f Earnings - as a % of Sales

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Quarterly Statement of Earnings (Continued) (Dollars in Millions except per share figures)

YearTotal Cost &

ExpenseEarnings

Before Taxes

Provision

for/(Benefit

from) Taxeson Income Net Earnings

Basic

Earnings perShare

Basic

AverageShares

Diluted

Earnings perShare

Diluted

AverageShares

1Q 2014 12,691$ 5,424$ 697$ 4,727$ 1.67$ 2,826.8 1.64$ 2,874.72Q 2014 13,869 5,626 1,300 4,326 1.53 2,826.4 1.51 2,874.2

3Q 2014 11,657 6,810 2,061 4,749 1.69 2,814.4 1.66 2,864.3

4Q 2014 15,551 2,703 182 2,521 0.90 2,795.2 0.89 2,845.3

2014 53,768$ 20,563$ 4,240$ 16,323$ 5.80$ 2,815.2 5.70$ 2,863.9

Year

Other Exp.

(Inc.)

Total Cost &

Expense

Earnings

Before Taxes

Provision

for/(Benefitfrom) Taxes

on Income

Income Taxes

(Eff. Rate) Net Earnings

1Q 2014 0.5% 70.1% 29.9% 3.8% 12.9% 26.1%

2Q 2014 1.1% 71.1% 28.9% 6.7% 23.1% 22.2%

3Q 2014 -7.3% 63.1% 36.9% 11.2% 30.3% 25.7%

4Q 2014 5.3% 85.2% 14.8% 1.0% 6.7% 13.8%

2014 -0.1% 72.3% 27.7% 5.7% 20.6% 22.0%

(1) Net Earnings are GAAP and therefore, do not exclude special items.

Refer to Page 19, Reconciliation of Non-GAAP Measures, for an analysis of 2010-2014 Full Year Adjusted Earnings

Quarterly Statement of Earnings - as a % of Sales

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Sales and Net Earnings 1887 - 2014 (Dollars in Millions)

YearNet Trade

SalesNet

Earnings Year Net Trade

SalesNet

Earnings Year Net TradeSales (1) Net Earnings

1931 17.4 1.3 1976 2,522.5 205.41887 0.1$ 1932 15.2 1.1 1977 2,914.1 247.3

1888 0.2 1933 17.1 0.9 1978 3,497.3 299.1

1889 0.3 1934 20.7 1.0 1979 4,211.6 352.11890 0.4 1935 24.7 1.3 1980 4,837.4 400.7

1891 0.4 1936 28.9 2.1 1981 5,399.0 467.61892 0.5 1937 32.3 1.7 1982 5,760.9 473.01893 0.5 1938 33.4 2.7 1983 5,972.9 489.0

1894 0.6 1939 35.1 3.7 1984 6,124.5 514.51895 0.6 1940 39.1 2.4 1985 6,421.3 613.71896 0.7 1941 56.6 3.2 1986 7,003.0 330.0

1897 0.7 0.19$ 1942 78.2 2.8 1987 8,011.5 833.01898 0.9 0.13 1943 93.1 3.1 1988 8,999.5 974.0

1899 1.1 0.20 1944 93.6 3.1 1989 9,829.0 1,082.01900 1.3 0.23 1945 96.0 3.1 1990 11,365.0 1,080.01901 1.4 0.23 1946 112.6 8.3 1991 12,210.0 1,270.0

1902 1.6 0.27 1947 152.3 9.9 1992 13,600.0 977.01903 1.8 0.28 1948 165.6 12.1 1993 13,877.0 1,786.01904 2.0 0.36 1949 168.3 10.0 1994 15,454.0 1,961.0

1905 2.4 0.33 1950 195.5 15.7 1995 18,537.0 2,416.01906 2.7 0.53 1951 227.6 12.3 1996 21,387.0 2,942.01907 3.0 0.77 1952 232.2 8.8 1997 22,522.0 3,070.0

1908 2.9 0.54 1953 236.1 11.2 1998 23,811.0 3,024.01909 3.2 0.63 1954 243.5 12.2 1999 27,357.0 4,133.0

1910 3.9 0.67 1955 267.5 14.0 2000 29,172.0 4,764.01911 4.4 0.54 1956 293.6 15.6 2001 32,317.0 5,405.01912 4.6 1.05 1957 315.6 16.9 2002 36,298.0 6,277.0

1913 4.8 0.75 1958 321.2 15.1 2003 41,862.0 6,848.01914 5.0 0.63 1959 368.4 19.7 2004 47,348.0 8,180.01915 5.1 0.74 1960 384.4 20.2 2005 50,514.0 10,060.0

1916 6.2 1.11 1961 414.5 17.7 2006 53,324.0 11,053.01917 9.6 1.22 1962 447.6 19.9 2007 61,095.0 10,576.01918 13.7 1.37 1963 462.4 21.5 2008 63,747.0 12,949.0

1919 11.2 0.83 1964 503.3 26.8 2009 61,897.0 12,266.01920 15.2 0.50 1965 576.0 34.4 2010 61,587.0 13,334.01921 12.5 1.30 1966 660.6 40.1 2011 65,030.0 9,672.0

1922 13.7 1.90 1967 712.3 45.9 2012 67,224.0 10,853.01923 15.5 1.80 1968 801.3 57.6 2013 71,312.0 13,831.01924 16.0 1.80 1969 901.9 69.4 2014 74,331.0$ 16,323.0$

1925 16.2 2.10 1970 1,002.0 83.71926 16.5 2.00 1971 1,140.5 101.81927 16.8 1.50 1972 1,317.7 120.7

1928 18.4 0.80 1973 1,611.8 148.41929 19.9 1.60 1974 1,937.2 161.6

1930 18.7 1.20 1975 2,224.7 183.8

(1) Sales restated for EITF change for 1991-2001 only. Net Earnings restated for FAS 123R Share Based Payment for 1996-2005.

(2) Net Earnings attributable to Johnson & Johnson.

Note: 1887-1989 information not restated and may include estimates.

Refer to Page 19, Reconciliation of Non-GAAP Measures, for an analysis of 2010-2014 Adjusted Earnings.

Note: Net Earnings are reported according to GAAP and therefore do not exclude special items.

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Stock Split and Share Repurchase Information (Dollars in Millions)

Stock Splits

Pay Out Date Action

May 5, 1947 100% Stock Dividend

November 15, 1948 5% Stock Dividend

November 15, 1949 5% Stock DividendMarch 20, 1951 5% Stock Dividend

January 9, 1959 2 1/2 for 1 Split

June 19, 1967 200% Stock Dividend

May 15, 1970 3 for 1 Split



June 9, 1992 2 for 1 Split



Share Repurchase Program*

Total Shares Total Value Avg. Price

Year (Millions) (Dollars in Millions) Per Share

1984 160.0 $329 $2.0550

1986 160.0 670 4.1865

1988 97.8 500 5.1230

1992 42.4 500 11.7975

1993 49.6 500 10.0625

2002 83.6 5,000 59.7994

2006 81.8 5,000 61.1247

2007 55.8 3,600 64.5870

2008 69.1 4,500 65.1230

2009 15.5 800 51.6129

2010 17.9 1,100 61.4525

2014(1) 33.7 $3,500 $103.8576

* Total value may be rounded. In addition, the Company repurchases shares annually for use in employee stock option and

employee incentive plans. In 1990, the Company repurchased 12.8 million shares for a total value of $100 million in connection withthe establishment of an ESOP. All shares and average price per share have been adjusted for stock split.

(1)On July 21, 2014, the Company announced that is Board of Directors approved a share repurchase program, authorizing the

Company to purchase up to $5.0 billion of the Company's Common Stock.

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Common Stock Information 1944-2014 (Price per share/Shares in Millions)

YEARLY YEARLY YEARLY YEAR-END YEARLY NET SHARES P/E

YEAR HIGH LOW AVERAGE PRICE DIVIDEND OUTSTANDING* RATIO

9/25/44 (open) $ 0.02 2,213.6

1944 $ 0.02 $ 0.01 $ 0.02 0.01 $ 0.00008 2,213.6 10

1945 0.03 0.02 0.02 0.02 0.00012 2,242.7 19

1946 0.03 0.02 0.02 0.03 0.00012 2,264.0 71947 0.03 0.02 0.03 0.02 0.00020 2,276.0 6

1948 0.03 0.03 0.03 0.03 0.00067 2,243.1 6

1949 0.05 0.03 0.03 0.05 0.00115 2,247.9 12

1950 0.07 0.04 0.05 0.07 0.00176 2,260.2 12

1951 0.08 0.06 0.07 0.06 0.00102 2,264.1 18

1952 0.07 0.05 0.06 0.06 0.00093 2,259.8 15

1953 0.06 0.05 0.06 0.06 0.00152 2,268.4 15

1954 0.07 0.06 0.06 0.07 0.00152 2,274.9 17

1955 0.08 0.06 0.07 0.07 0.00152 2,270.4 15

1956 0.08 0.06 0.07 0.07 0.00152 2,276.6 12

1957 0.09 0.07 0.08 0.08 0.00167 2,288.0 14

1958 0.14 0.08 0.11 0.12 0.00157 2,290.3 22

1959 0.17 0.11 0.16 0.14 0.00185 2,558.8 23

1960 0.18 0.13 0.16 0.17 0.00231 2,563.5 28

1961 0.26 0.17 0.22 0.24 0.00231 2,586.3 31

1962 0.26 0.14 0.22 0.17 0.00231 2,584.8 24

1963 0.29 0.17 0.24 0.24 0.00255 2,591.9 29

1964 0.28 0.22 0.25 0.26 0.00278 2,574.6 27

1965 0.40 0.26 0.35 0.40 0.00336 2,603.0 32

1966 0.47 0.32 0.41 0.40 0.00382 2,588.2 28

1967 0.67 0.38 0.50 0.64 0.00428 2,606.1 33

1968 0.75 0.52 0.63 0.74 0.00451 2,619.4 34

1969 1.26 0.70 0.99 1.25 0.00590 2,656.4 41

1970 1.25 0.89 1.06 1.19 0.00708 2,676.3 43

1971 2.08 1.18 1.74 2.05 0.00896 2,690.8 54

1972 2.77 1.96 2.50 2.72 0.00932 2,708.1 59

1973 2.76 2.11 2.47 2.35 0.01094 2,761.1 411974 2.49 1.52 1.97 1.69 0.01510 2,773.6 28

1975 2.08 1.51 1.85 1.87 0.01771 2,785.7 30

1976 2.01 1.49 1.84 1.63 0.02188 2,796.1 22

1977 1.63 1.30 1.46 1.60 0.02917 2,808.3 16

1978 1.86 1.37 1.61 1.54 0.03542 2,872.9 14

1979 1.68 1.35 1.52 1.65 0.04167 2,938.2 12

1980 2.11 1.38 1.67 2.08 0.04646 2,966.6 15

1981 2.46 1.77 2.06 2.32 0.05313 2,993.0 15

1982 3.20 2.03 2.55 3.10 0.06625 3,026.0 16

1983 3.22 2.44 2.86 2.55 0.06750 3,061.3 14

1984 2.68 1.75 2.16 2.26 0.07375 2,925.5 14

1985 3.45 2.20 2.78 3.29 0.08000 2,925.6 15

1986 4.64 2.86 3.97 4.10 0.08625 2,765.6 43

1987 6.59 3.44 5.28 4.68 0.10063 2,753.5 17

1988 5.51 4.35 5.06 5.32 0.12000 2,664.6 16

1989 7.44 5.19 6.25 7.42 0.14000 2,679.4 19

1990 9.27 6.39 7.85 8.97 0.16375 2,700.4 21

1991 14.53 8.17 11.19 14.31 0.19250 2,713.4 30

1992 14.67 10.75 12.34 12.63 0.22250 2,674.2 23

1993 12.60 8.91 10.50 11.22 0.25250 2,627.8 17

1994 14.13 9.00 11.54 13.69 0.28250 2,645.0 191995 23.10 13.41 17.19 21.38 0.32000 2,665.6 25

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Common Stock Information 1944-2014 (Price per share/Shares in Millions)

YEARLY YEARLY YEARLY YEAR-END YEARLY NET SHARES P/E

YEAR HIGH LOW AVERAGE PRICE DIVIDEND OUTSTANDING* RATIO

1996 27.00 20.78 24.29 24.88 0.36750 2,753.4 25

1997 33.66 24.32 29.82 32.97 0.42500 2,971.6 32

1998 44.88 31.69 37.46 41.94 0.48500 2,975.3 41

1999 53.44 38.50 46.99 46.63 0.54500 2,979.6 342000 52.97 33.07 44.64 52.53 0.62000 3,014.6 33

2001 60.97 40.25 51.88 59.86 0.70000 3,047.2 34

2002 65.89 41.40 57.67 53.11 0.79500 2,968.3 25

2003 59.08 48.05 52.62 50.62 0.92500 2,967.9 22

2004 64.25 49.25 55.84 63.42 1.09500 2,971.0 23

2005 64.60 59.76 64.70 60.10 1.27500 2,971.0 18

2006 69.41 56.70 62.21 66.02 1.45500 2,893.2 18

2007 68.75 59.72 63.98 67.38 1.62000 2,840.2 18

2008 72.76 52.06 64.91 58.56 1.79500 2,769.2 13

2009 65.41 46.25 56.88 64.41 1.93000 2,754.3 15

2010 66.20 56.86 62.16 61.85 2.11000 2,738.1 13

2011 68.05 57.50 63.56 65.58 2.25000 2,724.4 19

2012 72.74 61.71 66.95 69.48 2.40000 2,778.5 18

2013 95.99 69.18 85.65 92.35 2.59000 2,820.6 19

2014 109.49 86.09 100.82 105.06 2.76000 2,783.2 18

* Net shares outstanding = shares issued less treasury stock at Johnson & Johnson year-end close.

Note: All data adjusted for prior stock splits; shares outstanding are actual J&J year-end close; year -end share price per

Yahoo Financeat J&J year-end close; P/E ratio based on fiscal year-end closing price.

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Reconciliation of Non-GAAP Measures

2014 2013 2012 2011 2010

Earnings before provision for taxes on income- as reported 20,563$ 15,471 13,775 12,361 16,947

Net litigation loss (gain) 1,253 2,282 1,229 3,310 (397)

Ortho-Clinical Diagnostics divestiture net gain (1,899) - - - -

Additional year of Branded Prescription Drug Fee 220 - - - -

DePuy ASR

TM

Hip program 126 251 110 521 280Synthes integration/transaction costs and currency related 754 683 1,028 491 -

In-process research & development 178 580 1,163 14 -

Intangible asset write-downs - - 939 - -

Restructuring expense - - - 656 -

Other - (98) (30) - -

Earnings before provision for taxes on income- as adjusted 21,195$ 19,169 18,214 17,353 16,830

Net Earnings(1)- as reported 16,323$ 13,831 10,853 9,672 13,334

Net litigation loss (gain) 1,225 (2) 1,646 1,052 2,745 (294)Ortho-Clinical Diagnostics divestiture net gain (1,062) - - - -

Additional year of Branded Prescription Drug Fee 220 - - - -

Tax benefit associated with Conor Medsystems (398) - - - -

DePuy ASRTMHip program 111 240 97 426 239

Synthes integration/transaction costs and currency related 555 483 899 477 -

In-process research & development 131 462 743 (3) 11 -

Scios Tax Benefit - (707) - - -

Intangible asset write-downs - - 717 - -Restructuring expense - - - 536 -

Other - (79) (16) - -

Net Earnings(1)- as adjusted 17,105$ 15,876 14,345 13,331 13,279

Diluted net earnings per share(1)- as reported 5.70$ 4.81 3.86 3.49 4.78

Net litigation loss (gain) 0.43 0.57 0.37 0.99 (0.11)Ortho-Clinical Diagnostics divestiture net gain (0.37) - - - -

Additional year of Branded Prescription Drug Fee 0.08 - - - -

Tax benefit associated with Conor Medsystems (0.14) - - - -

DePuy ASRTMHip program 0.04 0.08 0.03 0.16 0.09

Synthes integration/transaction costs and currency related 0.19 0.17 0.32 0.17 -In-process research & development 0.04 0.16 0.27 - -

Scios Tax Benefit - (0.25) - - -

Intangible asset write-downs - - 0.26 - -

Restructuring expense - - - 0.19 -Other - (0.02) (0.01) - -

Diluted net earnings per share(1)- as adjusted 5.97$ 5.52 5.10 5.00 4.76

The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on

income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations. These non-GAAP financial measures

should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.

(3) Amount includes in-process research and development charge of $679M related to bapineuzumab IV offset by $339M reported as net loss attributable to noncontrolling

interest

(1) Attributable to Johnson & Johnson

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

19


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Principal OfficeOne Johnson & Johnson PlazaNew Brunswick, New Jersey 08933(732) 524-0400

Common StockListed on New York Stock ExchangeStock Symbol: JNJ

Annual MeetingThe Annual Meeting of Shareholders will takeplace on Thursday, April 23, 2015, at theHyatt Regency Hotel, Two Albany Street, NewBrunswick, New Jersey. The meeting willconvene at 10 a.m. All shareholders as of therecord date of February 24, 2015 are cordiallyinvited to attend. A formal Notice of AnnualMeeting, Proxy Statement and Proxy havebeen sent to shareholders.

Transfer Agent and RegistrarQuestions regarding stock holdings, certificatereplacement/transfer, dividends and addresschanges should be directed to:Computershare Trust Company, N.A.250 Royall St.Canton, MA 02021(800) 328-9033 or(781) 575-2718 (outside the U.S.)www.computershare.com

Dividend Reinvestment PlanThe Plan allows for full or partial dividendreinvestment and additional monthly cash

investments up to $50,000 per year inJohnson & Johnson Common Stock withoutbrokerage commissions or service charges onstock purchases. If you are interested inparticipating in the Plan and need anauthorization form and/or more information,please call Computershare Trust Company,N.A. at (800) 328-9033 or (781) 575-2718(outside the U.S.).

Shareholder Relations ContactDouglas K. ChiaCorporate Secretary(732) 524-2455

Investor Relations DepartmentOne Johnson & Johnson PlazaNew Brunswick, New Jersey 089331-800-950-5089Fax: (732) 524-3867

Louise MehrotraVice President, Investor Relations(732) 524-6492

Jason ValmoreSenior Director, Investor Relations(732) 524-3709

Lesley FishmanSenior Director, Investor Relations(732) 524-3922

Lisa RomankoSenior Director, Investor Relations

(732) 524-2034

Renee McKennaSenior Analyst(732) 524-6492

Reports AvailableCopies of the Company's 2014 AnnualReport on Form 10-K, Quarterly Reports onForm 10-Q and Current Reports on Form8-K to the Securities and ExchangeCommission, Proxy Statement and the

Annual Report are available onlineatwww.jnj.comor to shareholders without

charge upon written request to theSecretary at the Company's principaladdress or by calling (800) 328-9033 or(781) 575-2718 (outside the U.S.)

Press ReleasesPress releases, including earningsreports, are available via webaccesshttp://www.jnj.com

Internet AccessVisit the Johnson & Johnson HomePage on theInternet:http://www.jnj.com

Johnson & Johnson 2014Trademarks and service marks of Johnson & Johnson and its affiliated

Corporate and Shareholder/Investor Information
http://www.computershare.com/http://www.computershare.com/http://www.jnj.com./http://www.jnj.com./http://www.jnj.com./http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com/http://www.jnj.com./http://www.computershare.com/

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