2022 Fourth-Quarter reported sales decline of 4.4% to $23.7 Billion primarily driven by unfavorable foreign exchange and reduced COVID-19 Vaccine sales vs. prior year. Operational growth excluding COVID-19 Vaccine of 4.6%*
2022 Fourth-Quarter earnings per share (EPS) of $1.33 decreasing 24.9% and adjusted EPS of $2.35 increasing by 10.3%*
2022 Full-Year reported sales growth of 1.3% to $94.9 Billion primarily driven by strong commercial execution partially offset by unfavorable foreign exchange. Operational growth of 6.1%*
2022 Full-Year earnings per share (EPS) of $6.73 decreasing 13.8% and adjusted EPS of $10.15 increasing by 3.6%*
Company guides 2023 adjusted operational sales growth excluding COVID-19 Vaccine of 4.0%* and adjusted operational EPS of $10.50, reflecting growth of 3.5%*
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Johnson & Johnson Family of Companies (NYSE: JNJ) today announced results for fourth-quarter and full year 2022. “Our full year 2022 results reflect the continued strength and stability of our three business segments, despite macroeconomic challenges,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “I am inspired by our employees who make a difference in the health and lives of people around the world every day. As we look ahead to 2023, Johnson & Johnson is well-positioned to drive near-term growth, while also investing strategically to deliver long-term value.”
OVERALL FINANCIAL RESULTS
Q4
Full Year
($ in Millions, except EPS)
2022
2021
% Change
2022
2021
% Change
Reported Sales
$23,706
$24,804
(4.4)%
$94,943
$93,775
1.3%
Net Earnings
$3,520
$4,736
(25.7)%
$17,941
$20,878
(14.1)%
EPS (diluted)
$1.33
$1.77
(24.9)%
$6.73
$7.81
(13.8)%
Q4
Full Year
Non-GAAP* ($ in Millions, except EPS)
2022
2021
% Change
2022
2021
% Change
Operational Sales1,2
0.9%
6.1%
Adjusted Operational Sales1,3
0.8%
6.2%
Adjusted Net Earnings1,4
$6,218
$5,678
9.5%
$27,038
$26,195
3.2%
Adjusted EPS (diluted)1,4
$2.35
$2.13
10.3%
$10.15
$9.80
3.6%
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2 Excludes the impact of translational currency
3 Excludes the net impact of acquisitions and divestitures and translational currency
4 Excludes intangible amortization expense and special items
Note: values may have been rounded
REGIONAL SALES RESULTS
Q4
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
U.S.
$12,516
$12,163
2.9%
2.9
-
2.7
International
11,190
12,641
(11.5)
(1.1)
(10.4)
(1.0)
Worldwide
$23,706
$24,804
(4.4)%
0.9
(5.3)
0.8
Full Year
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
U.S.
$48,580
$47,156
3.0%
3.0
-
3.0
International
46,363
46,619
(0.6)%
9.1
(9.7)
9.3
Worldwide
$94,943
$93,775
1.3%
6.1
(4.8)
6.2
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2 Excludes the impact of translational currency
3 Excludes the net impact of acquisitions and divestitures and translational currency
Note: Values may have been rounded
SEGMENT SALES RESULTS
Q4
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
Consumer Health4
$ 3,767
$ 3,728
1.0%
6.4
(5.4)
6.4
Pharmaceutical4
13,163
14,217
(7.4)
(2.5)
(4.9)
(2.3)
MedTech
6,776
6,859
(1.2)
4.9
(6.1)
4.4
Worldwide
$ 23,706
$ 24,804
(4.4)%
0.9
(5.3)
0.8
Full Year
% Change
($ in Millions)
2022
2021
Reported
Operational1,2
Currency
Adjusted
Operational1,3
Consumer Health
$ 14,953
$ 15,035
(0.5)%
3.6
(4.1)
3.9
Pharmaceutical
52,563
51,680
1.7
6.7
(5.0)
6.8
MedTech
27,427
27,060
1.4
6.2
(4.8)
6.1
Worldwide
$ 94,943
$ 93,775
1.3%
6.1
(4.8)
6.2
1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2 Excludes the impact of translational currency
3 Excludes the net impact of acquisitions and divestitures and translational currency
4 Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
Note: Values may have been rounded
FULL YEAR 2022 SEGMENT COMMENTARY:
Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.
Consumer Health
Consumer Health worldwide adjusted operational sales increased 3.9%* predominately driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, as well as upper respiratory products and digestive health products in the international markets. Additionally, Skin Health/Beauty adjusted operational growth was primarily driven by NEUTROGENA outside the U.S. Growth was partially offset by Oral Care in the international markets.
Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 6.8%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and ZYTIGA (abiratone acetate), an oral, once daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.
MedTech
MedTech worldwide adjusted operational sales grew 6.1%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, and wound closure products in General Surgery.
NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at , or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investors section of the company’s website at news releases, as well as , , and .
Regulatory
DePuy Synthes Receives FDA Clearance for TELIGEN System
Press Release
U.S. FDA Approves TECVAYLI (teclistamab-cqyv), the First Bispecific T-cell Engager Antibody for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma
Press Release
Janssen Submits Biologics License Application to U.S. FDA for Talquetamab for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma
Press Release
Data Release
New TREMFYA (guselkumab) Data Shows an Overall Clinical Response Rate of Approximately 80 Percent in a Phase 2b Induction Study of Adults with Moderately to Severely Active Ulcerative Colitis
Press Release
Janssen to Highlight Latest Scientific Advances in Hematologic Diseases at ASH 2022 with Clinical and Real-World Data Across Innovative Pipeline and Distinguished Portfolio
Press Release
Late-Breaking Data from Pivotal Phase 3 PRECISION Study Demonstrates Significant and Sustained Effect of Aprocitentan on Lowering Blood Pressure for Patients with Difficult-to-Control Hypertension
Press Release
New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Active Psoriatic Arthritis Patients With Early Efficacy Had Meaningful Long-Term Improvement in Health-Related Quality of Life
Press Release
New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Early Efficacy Predicted Longer-Term Efficacy And Sustained Achievement Among A Diverse Active Psoriatic Arthritis Patient Population
Press Release
CERENOVUS Reveals Positive Outcomes with Thrombectomy in Global Registry Studying Stroke-Inducing Blood Clots
Press Release
Other
Johnson & Johnson Names CEO Joaquin Duato as Chairman of the Board
Press Release
Johnson & Johnson Completes Acquisition of Abiomed
Press Release
FULL-YEAR 2023 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.
($ in Billions, except EPS)
January 2023
Adjusted Operational Sales1,2,5
Change vs. Prior Year / Mid-point
3.5% – 4.5% / 4.0%
Operational Sales2,5/ Mid-point2,5
Change vs. Prior Year / Mid-point
$96.9B – $97.9B / $97.4B
4.5% – 5.5% / 5.0%
Estimated Reported Sales3,5/ Mid-point3,5
Change vs. Prior Year / Mid-point
$96.9B – $97.9B / $97.4B
4.5% – 5.5% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4
Change vs. Prior Year / Mid-point
$10.40 – $10.60 / $10.50
2.5% – 4.5% / 3.5%
Adjusted EPS (Diluted)3,4 / Mid-point3,4
Change vs. Prior Year / Mid-point
$10.45 – $10.65 / $10.55
3.0% – 5.0% / 4.0%
1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
2 Non-GAAP financial measure; excludes the impact of translational currency
3 Calculated using Euro Average Rate: January 2023 = $1.08 (Illustrative purposes only)
4 Non-GAAP financial measure; excludes intangible amortization expense and special items
5 Excludes COVID-19 Vaccine
Note: percentages may have been rounded
Other modeling considerations will be provided on the webcast.
WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.
ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.
NON-GAAP FINANCIAL MEASURES:
* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company's website at quarterly results.
Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company's website at quarterly results.
NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at , or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
FOURTH QUARTER
TWELVE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Sales to customers by
segment of business
Consumer Health (1)
U.S.
$
1,696
1,529
10.9
%
10.9
-
$
6,599
6,516
1.3
%
1.3
-
International
2,071
2,199
(5.8
)
3.2
(9.0
)
8,354
8,519
(1.9
)
5.3
(7.2
)
3,767
3,728
1.0
6.4
(5.4
)
14,953
15,035
(0.5
)
3.6
(4.1
)
Pharmaceutical (1)
U.S.
7,375
7,418
(0.6
)
(0.6
)
-
28,604
27,954
2.3
2.3
-
International
5,788
6,799
(14.9
)
(4.5
)
(10.4
)
23,959
23,726
1.0
11.9
(10.9
)
13,163
14,217
(7.4
)
(2.5
)
(4.9
)
52,563
51,680
1.7
6.7
(5.0
)
Pharmaceutical excluding COVID-19 Vaccine (1,3)
U.S.
7,375
7,205
2.4
2.4
-
28,484
27,320
4.3
4.3
-
International
5,099
5,394
(5.5
)
6.0
(11.5
)
21,900
21,975
(0.3
)
10.3
(10.6
)
12,474
12,599
(1.0
)
3.9
(4.9
)
50,384
49,295
2.2
6.9
(4.7
)
MedTech (2)
U.S.
3,445
3,216
7.1
7.1
-
13,377
12,686
5.4
5.4
-
International
3,331
3,643
(8.6
)
2.9
(11.5
)
14,050
14,374
(2.3
)
6.9
(9.2
)
6,776
6,859
(1.2
)
4.9
(6.1
)
27,427
27,060
1.4
6.2
(4.8
)
U.S.
12,516
12,163
2.9
2.9
-
48,580
47,156
3.0
3.0
-
International
11,190
12,641
(11.5
)
(1.1
)
(10.4
)
46,363
46,619
(0.6
)
9.1
(9.7
)
Worldwide
23,706
24,804
(4.4
)
0.9
(5.3
)
94,943
93,775
1.3
6.1
(4.8
)
U.S.
12,516
11,950
4.7
4.7
-
48,460
46,522
4.2
4.2
-
International
10,501
11,236
(6.5
)
4.4
(10.9
)
44,304
44,868
(1.3
)
8.2
(9.5
)
Worldwide excluding COVID-19 Vaccine (3)
$
23,017
23,186
(0.7
)
%
4.6
(5.3
)
$
92,764
91,390
1.5
%
6.2
(4.7
)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes.
(2) Previously referred to as Medical Devices.
(3) Refer to supplemental sales reconciliation schedule.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
FOURTH QUARTER
TWELVE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Sales to customers by
geographic area
U.S.
$
12,516
12,163
2.9
%
2.9
-
$
48,580
47,156
3.0
%
3.0
-
Europe
5,816
6,925
(16.0
)
(6.3
)
(9.7
)
23,449
23,594
(0.6
)
11.0
(11.6
)
Western Hemisphere excluding U.S.
1,545
1,459
5.9
11.8
(5.9
)
6,125
5,750
6.5
10.2
(3.7
)
Asia-Pacific, Africa
3,829
4,257
(10.0
)
3.1
(13.1
)
16,789
17,275
(2.8
)
6.2
(9.0
)
International
11,190
12,641
(11.5
)
(1.1
)
(10.4
)
46,363
46,619
(0.6
)
9.1
(9.7
)
Worldwide
$
23,706
24,804
(4.4
)
%
0.9
(5.3
)
$
94,943
93,775
1.3
%
6.1
(4.8
)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
FOURTH QUARTER
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$
23,706
100.0
$
24,804
100.0
(4.4
)
Cost of products sold
7,765
32.8
7,955
32.1
(2.4
)
Gross Profit
15,941
67.2
16,849
67.9
(5.4
)
Selling, marketing and administrative expenses
6,512
27.4
7,154
28.9
(9.0
)
Research and development expense
3,841
16.2
4,720
19.0
(18.6
)
In-process research and development
173
0.7
0
0.0
Interest (income) expense, net
(77
)
(0.3
)
47
0.2
Other (income) expense, net
1,207
5.1
9
0.0
Restructuring
84
0.4
83
0.3
Earnings before provision for taxes on income
4,201
17.7
4,836
19.5
(13.1
)
Provision for taxes on income
681
2.9
100
0.4
581.0
Net earnings
$
3,520
14.8
$
4,736
19.1
(25.7
)
Net earnings per share (Diluted)
$
1.33
$
1.77
(24.9
)
Average shares outstanding (Diluted)
2,650.1
2,670.2
Effective tax rate
16.2
%
2.1
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$
7,418
31.3
$
6,339
25.6
17.0
Net earnings
$
6,218
26.2
$
5,678
22.9
9.5
Net earnings per share (Diluted)
$
2.35
$
2.13
10.3
Effective tax rate
16.2
%
10.4
%
(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
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$
94,943
100.0
$
93,775
100.0
1.3
Cost of products sold
31,089
32.7
29,855
31.8
4.1
Gross Profit
63,854
67.3
63,920
68.2
(0.1
)
Selling, marketing and administrative expenses
24,765
26.1
24,659
26.3
0.4
Research and development expense
14,603
15.4
14,714
15.7
(0.8
)
In-process research and development
783
0.8
900
1.0
Interest (income) expense, net
(214
)
(0.2
)
130
0.1
Other (income) expense, net
1,871
2.0
489
0.5
Restructuring
321
0.3
252
0.3
Earnings before provision for taxes on income
21,725
22.9
22,776
24.3
(4.6
)
Provision for taxes on income
3,784
4.0
1,898
2.0
99.4
Net earnings
$
17,941
18.9
$
20,878
22.3
(14.1
)
Net earnings per share (Diluted)
$
6.73
$
7.81
(13.8
)
Average shares outstanding (Diluted)
2,663.9
2,674.0
Effective tax rate
17.4
%
8.3
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$
31,880
33.6
$
30,464
32.5
4.6
Net earnings
$
27,038
28.5
$
26,195
27.9
3.2
Net earnings per share (Diluted)
$
10.15
$
9.80
3.6
Effective tax rate
15.2
%
14.0
%
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Fourth Quarter
Twelve Months Ended
(Dollars in Millions Except Per Share Data)
2022
2021
2022
2021
Net Earnings, after tax- as reported
$3,520
$4,736
$17,941
$20,878
Pre-tax Adjustments
Intangible Asset Amortization expense
1,061
1,121
4,305
4,697
Litigation related
262
274
866
2,328
IPR&D
173
-
783
900
Restructuring related
140
140
463
473
Acquisition, integration and divestiture related ¹
196
26
196
(478
)
(Gains)/losses on securities
6
(198
)
690
(533
)
Medical Device Regulation 2
88
73
296
234
COVID-19 Vaccine related costs 3
821
-
1,474
-
Consumer Health separation costs
470
67
1,089
67
Other
-
-
(7
)
-
Tax Adjustments
Tax impact on special item adjustments 4
(507
)
(184
)
(1,592
)
(1,281
)
Consumer Health separation tax related costs
35
-
494
-
Tax legislation and other tax related
(47
)
(377
)
40
(1,090
)
Adjusted Net Earnings, after tax
$6,218
$5,678
$27,038
$26,195
Average shares outstanding (Diluted)
2,650.1
2,670.2
2,663.9
2,674.0
Adjusted net earnings per share (Diluted)
$2.35
$2.13
$10.15
$9.80
Operational adjusted net earnings per share (Diluted)
$2.46
$10.70
Notes:
1
Acquisition, integration and divestiture related for 2022 primarily includes costs related to the Abiomed acquisition. Acquisition, integration and divestiture related for 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.
2
European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.
3
COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's modification of its COVID-19 vaccine research program and manufacturing capacity to levels that meet all remaining customer contractual requirements.
4
The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
FOURTH QUARTER 2022 ACTUAL vs. 2021 ACTUAL
Segments
Consumer Health
Pharmaceutical
MedTech
Total
WW As Reported
1.0
%
(7.4
)%
(1.2
)%
(4.4
)%
U.S.
10.9
%
(0.6
)%
7.1
%
2.9
%
International
(5.8
)%
(14.9
)%
(8.6
)%
(11.5
)%
WW Currency
(5.4
)
(4.9
)
(6.1
)
(5.3
)
U.S.
-
-
-
-
International
(9.0
)
(10.4
)
(11.5
)
(10.4
)
WW Operational
6.4
%
(2.5
)%
4.9
%
0.9
%
U.S.
10.9
%
(0.6
)%
7.1
%
2.9
%
International
3.2
%
(4.5
)%
2.9
%
(1.1
)%
Interventional Solutions
Abiomed
(0.5
)
(0.1
)
U.S.
(1.0
)
(0.3
)
International
0.0
0.0
All Other Acquisitions and Divestitures
0.0
0.2
0.0
0.1
U.S.
0.1
0.2
(0.2
)
0.1
International
0.0
0.1
0.1
0.1
WW Adjusted Operational
6.4
%
(2.3
)%
4.4
%
0.8
%
U.S.
11.0
%
(0.4
)%
5.9
%
2.7
%
International
3.2
%
(4.4
)%
3.0
%
(1.0
)%
Note: Percentages are based on actual, non-rounded figures and may not sum
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
TWELVE MONTHS 2022 ACTUAL vs. 2021 ACTUAL
Segments
Consumer Health
Pharmaceutical
MedTech
Total
WW As Reported
(0.5
)%
1.7
%
1.4
%
1.3
%
U.S.
1.3
%
2.3
%
5.4
%
3.0
%
International
(1.9
)%
1.0
%
(2.3
)%
(0.6
)%
WW Currency
(4.1
)
(5.0
)
(4.8
)
(4.8
)
U.S.
-
-
-
-
International
(7.2
)
(10.9
)
(9.2
)
(9.7
)
WW Operational
3.6
%
6.7
%
6.2
%
6.1
%
U.S.
1.3
%
2.3
%
5.4
%
3.0
%
International
5.3
%
11.9
%
6.9
%
9.1
%
All Other Acquisitions and Divestitures
0.3
0.1
(0.1
)
0.1
U.S.
0.2
0.2
(0.4
)
0.0
International
0.5
0.1
0.1
0.2
WW Adjusted Operational
3.9
%
6.8
%
6.1
%
6.2
%
U.S.
1.5
%
2.5
%
5.0
%
3.0
%
International
5.8
%
12.0
%
7.0
%
9.3
%
Note: Percentages are based on actual, non-rounded figures and may not sum
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
CONSUMER HEALTH SEGMENT (2,3)
OTC
US
$
754
633
18.9
%
18.9
%
-
$
2,782
2,594
7.3
%
7.3
%
-
Intl
815
811
0.6
%
9.6
%
-9.0
%
3,249
3,034
7.1
%
14.5
%
-7.4
%
WW
1,569
1,444
8.6
%
13.7
%
-5.1
%
6,031
5,627
7.2
%
11.2
%
-4.0
%
SKIN HEALTH / BEAUTY
US
573
538
6.5
%
6.5
%
-
2,337
2,400
-2.6
%
-2.6
%
-
Intl
515
546
-5.6
%
4.4
%
-10.0
%
2,015
2,141
-5.9
%
2.2
%
-8.1
%
WW
1,088
1,084
0.4
%
5.4
%
-5.0
%
4,352
4,541
-4.2
%
-0.4
%
-3.8
%
ORAL CARE
US
164
159
3.3
%
3.3
%
-
635
637
-0.3
%
-0.3
%
-
Intl
207
246
-16.0
%
-8.1
%
-7.9
%
871
1,008
-13.6
%
-7.4
%
-6.2
%
WW
370
405
-8.4
%
-3.7
%
-4.7
%
1,505
1,645
-8.5
%
-4.7
%
-3.8
%
BABY CARE
US
93
90
3.4
%
3.4
%
-
357
378
-5.5
%
-5.5
%
-
Intl
264
309
-14.6
%
-7.4
%
-7.2
%
1,104
1,188
-7.1
%
-1.4
%
-5.7
%
WW
356
399
-10.6
%
-5.0
%
-5.6
%
1,461
1,566
-6.7
%
-2.4
%
-4.3
%
WOMEN'S HEALTH
US
4
4
15.6
%
15.6
%
-
13
13
1.7
%
1.7
%
-
Intl
217
230
-5.7
%
4.4
%
-10.1
%
891
905
-1.5
%
7.1
%
-8.6
%
WW
220
233
-5.5
%
4.6
%
-10.1
%
904
917
-1.5
%
7.0
%
-8.5
%
WOUND CARE / OTHER
US
109
106
3.3
%
3.3
%
-
475
495
-4.0
%
-4.0
%
-
Intl
54
57
-7.5
%
2.9
%
-10.4
%
224
243
-8.0
%
-3.4
%
-4.6
%
WW
163
164
-0.5
%
3.1
%
-3.6
%
700
739
-5.3
%
-3.8
%
-1.5
%
TOTAL CONSUMER HEALTH
US
1,696
1,529
10.9
%
10.9
%
-
6,599
6,516
1.3
%
1.3
%
-
Intl
2,071
2,199
-5.8
%
3.2
%
-9.0
%
8,354
8,519
-1.9
%
5.3
%
-7.2
%
WW
$
3,767
3,728
1.0
%
6.4
%
-5.4
%
$
14,953
15,035
-0.5
%
3.6
%
-4.1
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
PHARMACEUTICAL SEGMENT (2,3)
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
IMMUNOLOGY
US
$
2,805
2,912
-3.6
%
-3.6
%
-
$
11,036
10,843
1.8
%
1.8
%
-
Intl
1,312
1,443
-9.1
%
2.1
%
-11.2
%
5,899
5,907
-0.1
%
10.3
%
-10.4
%
WW
4,118
4,355
-5.4
%
-1.8
%
-3.6
%
16,935
16,750
1.1
%
4.8
%
-3.7
%
REMICADE
US
318
511
-37.7
%
-37.7
%
-
1,417
2,019
-29.8
%
-29.8
%
-
US Exports (4)
41
39
5.1
%
5.1
%
-
204
236
-13.6
%
-13.6
%
-
Intl
116
214
-45.9
%
-41.3
%
-4.6
%
722
935
-22.8
%
-18.7
%
-4.1
%
WW
475
764
-37.8
%
-36.5
%
-1.3
%
2,343
3,190
-26.6
%
-25.3
%
-1.3
%
SIMPONI / SIMPONI ARIA
US
280
287
-2.2
%
-2.2
%
-
1,166
1,127
3.5
%
3.5
%
-
Intl
220
271
-18.6
%
-7.4
%
-11.2
%
1,017
1,148
-11.4
%
-1.4
%
-10.0
%
WW
501
559
-10.2
%
-4.7
%
-5.5
%
2,184
2,276
-4.0
%
1.0
%
-5.0
%
STELARA
US
1,621
1,542
5.2
%
5.2
%
-
6,388
5,938
7.6
%
7.6
%
-
Intl
764
792
-3.5
%
8.1
%
-11.6
%
3,335
3,196
4.4
%
15.7
%
-11.3
%
WW
2,386
2,334
2.3
%
6.2
%
-3.9
%
9,723
9,134
6.5
%
10.4
%
-3.9
%
TREMFYA
US
541
528
2.5
%
2.5
%
-
1,844
1,503
22.7
%
22.7
%
-
Intl
211
165
27.5
%
44.5
%
-17.0
%
824
624
32.0
%
47.8
%
-15.8
%
WW
752
693
8.5
%
12.5
%
-4.0
%
2,668
2,127
25.4
%
30.1
%
-4.7
%
OTHER IMMUNOLOGY
US
3
6
-53.5
%
-53.5
%
-
17
21
-18.4
%
-18.4
%
-
Intl
0
0
*
*
*
0
3
*
*
*
WW
3
6
-53.3
%
-53.3
%
0.0
%
17
24
-28.2
%
-28.2
%
0.0
%
INFECTIOUS DISEASES
US
414
614
-32.6
%
-32.6
%
-
1,680
2,249
-25.3
%
-25.3
%
-
Intl
1,127
1,818
-38.0
%
-31.0
%
-7.0
%
3,769
3,576
5.4
%
17.3
%
-11.9
%
WW
1,540
2,431
-36.6
%
-31.4
%
-5.2
%
5,449
5,825
-6.5
%
0.8
%
-7.3
%
COVID-19 VACCINE
US
0
213
*
*
-
120
634
-81.1
%
-81.1
%
-
Intl
689
1,405
-50.9
%
-45.0
%
-5.9
%
2,059
1,751
17.6
%
32.1
%
-14.5
%
WW
689
1,619
-57.4
%
-52.2
%
-5.2
%
2,179
2,385
-8.6
%
2.0
%
-10.6
%
EDURANT / rilpivirine
US
9
10
1.2
%
1.2
%
-
36
41
-10.8
%
-10.8
%
-
Intl
281
220
27.6
%
39.2
%
-11.6
%
972
953
2.0
%
12.7
%
-10.7
%
WW
290
230
26.5
%
37.6
%
-11.1
%
1,008
994
1.5
%
11.8
%
-10.3
%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US
398
380
4.7
%
4.7
%
-
1,494
1,508
-1.0
%
-1.0
%
-
Intl
95
135
-29.5
%
-20.5
%
-9.0
%
449
575
-21.9
%
-13.4
%
-8.5
%
WW
493
515
-4.3
%
-1.9
%
-2.4
%
1,943
2,083
-6.7
%
-4.4
%
-2.3
%
OTHER INFECTIOUS DISEASES
US
6
11
-47.1
%
-47.1
%
-
30
66
-55.5
%
-55.5
%
-
Intl
61
57
7.3
%
18.0
%
-10.7
%
289
297
-2.6
%
3.6
%
-6.2
%
WW
67
68
-1.6
%
7.4
%
-9.0
%
318
363
-12.3
%
-7.2
%
-5.1
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
NEUROSCIENCE
US
912
899
1.4
%
1.4
%
-
3,570
3,347
6.7
%
6.7
%
-
Intl
825
890
-7.2
%
3.3
%
-10.5
%
3,323
3,641
-8.7
%
0.4
%
-9.1
%
WW
1,737
1,789
-2.8
%
2.4
%
-5.2
%
6,893
6,988
-1.4
%
3.4
%
-4.8
%
CONCERTA / Methylphenidate
US
37
55
-34.3
%
-34.3
%
-
151
172
-12.5
%
-12.5
%
-
Intl
131
123
6.5
%
20.3
%
-13.8
%
493
495
-0.4
%
9.9
%
-10.3
%
WW
168
178
-6.2
%
3.4
%
-9.6
%
644
667
-3.5
%
4.1
%
-7.6
%
INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA
US
678
668
1.8
%
1.8
%
-
2,714
2,550
6.5
%
6.5
%
-
Intl
329
361
-8.8
%
2.7
%
-11.5
%
1,426
1,472
-3.1
%
7.8
%
-10.9
%
WW
1,008
1,029
-2.0
%
2.1
%
-4.1
%
4,140
4,022
3.0
%
6.9
%
-3.9
%
RISPERDAL CONSTA
US
62
77
-19.4
%
-19.4
%
-
257
287
-10.4
%
-10.4
%
-
Intl
50
63
-21.5
%
-9.7
%
-11.8
%
228
305
-25.3
%
-15.5
%
-9.8
%
WW
112
140
-20.4
%
-15.0
%
-5.4
%
485
592
-18.1
%
-13.0
%
-5.1
%
OTHER NEUROSCIENCE
US
134
99
35.5
%
35.5
%
-
447
338
32.4
%
32.4
%
-
Intl
315
342
-7.7
%
0.3
%
-8.0
%
1,176
1,368
-14.1
%
-7.5
%
-6.6
%
WW
449
441
2.0
%
8.2
%
-6.2
%
1,623
1,706
-4.9
%
0.4
%
-5.3
%
ONCOLOGY
US
1,857
1,594
16.5
%
16.5
%
-
6,930
5,958
16.3
%
16.3
%
-
Intl
2,069
2,184
-5.3
%
6.8
%
-12.1
%
9,052
8,590
5.4
%
17.3
%
-11.9
%
WW
3,927
3,778
3.9
%
10.9
%
-7.0
%
15,983
14,548
9.9
%
16.9
%
-7.0
%
DARZALEX
US
1,139
867
31.4
%
31.4
%
-
4,210
3,169
32.8
%
32.8
%
-
Intl
944
778
21.3
%
36.7
%
-15.4
%
3,767
2,854
32.0
%
47.0
%
-15.0
%
WW
2,083
1,645
26.6
%
33.9
%
-7.3
%
7,977
6,023
32.4
%
39.5
%
-7.1
%
ERLEADA
US
275
235
17.2
%
17.2
%
-
968
813
19.2
%
19.2
%
-
Intl
266
149
78.0
%
97.8
%
-19.8
%
913
478
*
*
*
WW
541
384
40.9
%
48.6
%
-7.7
%
1,881
1,291
45.7
%
53.0
%
-7.3
%
IMBRUVICA
US
318
436
-27.0
%
-27.0
%
-
1,390
1,747
-20.4
%
-20.4
%
-
Intl
547
626
-12.5
%
-2.0
%
-10.5
%
2,394
2,622
-8.7
%
1.0
%
-9.7
%
WW
866
1,062
-18.5
%
-12.3
%
-6.2
%
3,784
4,369
-13.4
%
-7.6
%
-5.8
%
ZYTIGA / abiraterone acetate
US
20
23
-14.3
%
-14.3
%
-
74
119
-37.8
%
-37.8
%
-
Intl
250
525
-52.4
%
-44.8
%
-7.6
%
1,696
2,178
-22.1
%
-12.3
%
-9.8
%
WW
270
548
-50.8
%
-43.6
%
-7.2
%
1,770
2,297
-22.9
%
-13.6
%
-9.3
%
OTHER ONCOLOGY
US
106
34
*
*
-
289
110
*
*
-
Intl
63
106
-41.1
%
-33.1
%
-8.0
%
283
458
-38.3
%
-31.6
%
-6.7
%
WW
168
140
20.6
%
26.7
%
-6.1
%
571
568
0.6
%
6.0
%
-5.4
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
PULMONARY HYPERTENSION
US
610
587
3.9
%
3.9
%
-
2,346
2,365
-0.8
%
-0.8
%
-
Intl
261
264
-1.3
%
13.5
%
-14.8
%
1,071
1,085
-1.3
%
11.2
%
-12.5
%
WW
870
851
2.3
%
6.9
%
-4.6
%
3,417
3,450
-1.0
%
3.0
%
-4.0
%
OPSUMIT
US
305
286
7.0
%
7.0
%
-
1,132
1,147
-1.3
%
-1.3
%
-
Intl
156
162
-3.7
%
11.0
%
-14.7
%
651
672
-3.2
%
9.3
%
-12.5
%
WW
461
448
3.1
%
8.4
%
-5.3
%
1,783
1,819
-2.0
%
2.6
%
-4.6
%
UPTRAVI
US
280
264
6.3
%
6.3
%
-
1,104
1,056
4.5
%
4.5
%
-
Intl
56
46
20.4
%
33.3
%
-12.9
%
218
181
20.4
%
32.4
%
-12.0
%
WW
336
310
8.4
%
10.3
%
-1.9
%
1,322
1,237
6.9
%
8.6
%
-1.7
%
OTHER PULMONARY HYPERTENSION
US
24
38
-35.5
%
-35.5
%
-
110
163
-32.3
%
-32.3
%
-
Intl
48
56
-12.2
%
4.4
%
-16.6
%
202
232
-12.8
%
0.3
%
-13.1
%
WW
73
94
-21.7
%
-11.8
%
-9.9
%
313
395
-20.8
%
-13.1
%
-7.7
%
CARDIOVASCULAR / METABOLISM / OTHER
US
776
813
-4.4
%
-4.4
%
-
3,042
3,192
-4.7
%
-4.7
%
-
Intl
194
200
-3.4
%
5.7
%
-9.1
%
845
927
-8.9
%
-1.7
%
-7.2
%
WW
971
1,013
-4.2
%
-2.4
%
-1.8
%
3,887
4,119
-5.6
%
-4.0
%
-1.6
%
XARELTO
US
667
644
3.4
%
3.4
%
-
2,473
2,438
1.4
%
1.4
%
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
667
644
3.4
%
3.4
%
-
2,473
2,438
1.4
%
1.4
%
-
INVOKANA / INVOKAMET
US
29
59
-51.3
%
-51.3
%
-
193
308
-37.4
%
-37.4
%
-
Intl
62
60
2.3
%
11.2
%
-8.9
%
255
254
0.1
%
7.3
%
-7.2
%
WW
91
120
-24.1
%
-19.6
%
-4.5
%
448
563
-20.4
%
-17.2
%
-3.2
%
OTHER
US
81
110
-25.7
%
-25.7
%
-
376
446
-15.5
%
-15.5
%
-
Intl
132
140
-5.9
%
3.3
%
-9.2
%
590
673
-12.3
%
-5.1
%
-7.2
%
WW
213
250
-14.6
%
-9.4
%
-5.2
%
966
1,119
-13.6
%
-9.3
%
-4.3
%
TOTAL PHARMACEUTICAL
US
7,375
7,418
-0.6
%
-0.6
%
-
28,604
27,954
2.3
%
2.3
%
-
Intl
5,788
6,799
-14.9
%
-4.5
%
-10.4
%
23,959
23,726
1.0
%
11.9
%
-10.9
%
WW
$
13,163
14,217
-7.4
%
-2.5
%
-4.9
%
$
52,563
51,680
1.7
%
6.7
%
-5.0
%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
MEDTECH SEGMENT (2,3,5)
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
INTERVENTIONAL SOLUTIONS
US
$
603
483
24.9
%
24.9
%
-
$
2,169
1,836
18.2
%
18.2
%
-
Intl
495
536
-7.6
%
6.2
%
-13.8
%
2,131
2,135
-0.2
%
9.9
%
-10.1
%
WW
1,098
1,019
7.8
%
15.1
%
-7.3
%
4,300
3,971
8.3
%
13.7
%
-5.4
%
ORTHOPAEDICS
US
1,385
1,305
6.1
%
6.1
%
-
5,321
5,126
3.8
%
3.8
%
-
Intl
763
851
-10.4
%
0.8
%
-11.2
%
3,267
3,462
-5.6
%
3.4
%
-9.0
%
WW
2,148
2,155
-0.4
%
4.0
%
-4.4
%
8,587
8,588
0.0
%
3.7
%
-3.7
%
HIPS
US
250
227
9.7
%
9.7
%
-
943
878
7.3
%
7.3
%
-
Intl
135
151
-10.4
%
0.4
%
-10.8
%
571
602
-5.1
%
3.6
%
-8.7
%
WW
385
378
1.7
%
6.0
%
-4.3
%
1,514
1,480
2.3
%
5.8
%
-3.5
%
KNEES
US
231
208
11.8
%
11.8
%
-
851
787
8.2
%
8.2
%
-
Intl
122
135
-9.5
%
1.2
%
-10.7
%
508
538
-5.7
%
3.1
%
-8.8
%
WW
354
342
3.4
%
7.6
%
-4.2
%
1,359
1,325
2.6
%
6.1
%
-3.5
%
TRAUMA
US
470
467
0.7
%
0.7
%
-
1,882
1,819
3.5
%
3.5
%
-
Intl
240
261
-7.9
%
3.5
%
-11.4
%
989
1,066
-7.2
%
2.6
%
-9.8
%
WW
710
728
-2.4
%
1.7
%
-4.1
%
2,871
2,885
-0.5
%
3.1
%
-3.6
%
SPINE, SPORTS & OTHER
US
434
403
7.5
%
7.5
%
-
1,645
1,642
0.2
%
0.2
%
-
Intl
265
304
-12.9
%
-1.5
%
-11.4
%
1,198
1,256
-4.6
%
4.3
%
-8.9
%
WW
699
708
-1.3
%
3.6
%
-4.9
%
2,843
2,898
-1.9
%
1.9
%
-3.8
%
REPORTED SALES vs. PRIOR PERIOD ($MM)
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2022
2021
Reported
Operational (1)
Currency
2022
2021
Reported
Operational (1)
Currency
SURGERY
US
1,000
986
1.5
%
1.5
%
-
3,897
3,867
0.8
%
0.8
%
-
Intl
1,383
1,527
-9.4
%
1.4
%
-10.8
%
5,793
5,945
-2.6
%
5.7
%
-8.3
%
WW
2,384
2,513
-5.1
%
1.4
%
-6.5
%
9,690
9,812
-1.2
%
3.8
%
-5.0
%
ADVANCED
US
456
457
-0.2
%
-0.2
%
-
1,784
1,761
1.3
%
1.3
%
-
Intl
653
735
-11.1
%
-0.4
%
-10.7
%
2,785
2,861
-2.6
%
5.3
%
-7.9
%
WW
1,109
1,192
-7.0
%
-0.3
%
-6.7
%
4,569
4,622
-1.1
%
3.8
%
-4.9
%
GENERAL
US
544
528
3.1
%
3.1
%
-
2,113
2,105
0.4
%
0.4
%
-
Intl
731
793
-7.8
%
3.0
%
-10.8
%
3,008
3,085
-2.5
%
6.2
%
-8.7
%
WW
1,275
1,321
-3.5
%
3.0
%
-6.5
%
5,121
5,190
-1.3
%
3.8
%
-5.1
%
VISION
US
456
443
3.1
%
3.1
%
-
1,990
1,857
7.2
%
7.2
%
-
Intl
689
728
-5.4
%
5.9
%
-11.3
%
2,859
2,831
1.0
%
11.1
%
-10.1
%
WW
1,145
1,171
-2.2
%
4.8
%
-7.0
%
4,849
4,688
3.4
%
9.5
%
-6.1
%
CONTACT LENSES / OTHER
US
343
316
8.6
%
8.6
%
-
1,522
1,398
8.9
%
8.9
%
-
Intl
489
518
-5.6
%
7.2
%
-12.8
%
2,022
2,043
-1.0
%
10.1
%
-11.1
%
WW
831
833
-0.2
%
7.7
%
-7.9
%
3,543
3,440
3.0
%
9.6
%
-6.6
%
SURGICAL
US
113
126
-10.7
%
-10.7
%
-
468
459
2.0
%
2.0
%
-
Intl
200
211
-5.0
%
2.9
%
-7.9
%
837
788
6.2
%
13.7
%
-7.5
%
WW
314
338
-7.1
%
-2.2
%
-4.9
%
1,306
1,248
4.6
%
9.4
%
-4.8
%
TOTAL MEDTECH
US
3,445
3,216
7.1
%
7.1
%
-
13,377
12,686
5.4
%
5.4
%
-
Intl
3,331
3,643
-8.6
%
2.9
%
-11.5
%
14,050
14,374
-2.3
%
6.9
%
-9.2
%
WW
$
6,776
6,859
-1.2
%
4.9
%
-6.1
%
$
27,427
27,060
1.4
%
6.2
%
-4.8
%
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales
(5) Previously referred to as Medical Devices
Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
FOURTH QUARTER
TWELVE MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Pharmaceutical
U.S.
$
7,375
7,418
(0.6
)
%
(0.6
)
-
$
28,604
27,954
2.3
%
2.3
-
International
5,788
6,799
(14.9
)
(4.5
)
(10.4
)
23,959
23,726
1.0
11.9
(10.9
)
Worldwide
13,163
14,217
(7.4
)
(2.5
)
(4.9
)
52,563
51,680
1.7
6.7
(5.0
)
COVID-19 Vaccine
U.S.
0
213
*
*
-
120
634
(81.1
)
(81.1
)
-
International
689
1,405
(50.9
)
(45.0
)
(5.9
)
2,059
1,751
17.6
32.1
(14.5
)
Worldwide
689
1,619
(57.4
)
(52.2
)
(5.2
)
2,179
2,385
(8.6
)
2.0
(10.6
)
Pharmaceutical excluding COVID-19 Vaccine
U.S.
7,375
7,205
2.4
2.4
-
28,484
27,320
4.3
4.3
-
International
5,099
5,394
(5.5
)
6.0
(11.5
)
21,900
21,975
(0.3
)
10.3
(10.6
)
Worldwide
12,474
12,599
(1.0
)
3.9
(4.9
)
50,384
49,295
2.2
6.9
(4.7
)
Worldwide
U.S.
12,516
12,163
2.9
2.9
-
48,580
47,156
3.0
3.0
-
International
11,190
12,641
(11.5
)
(1.1
)
(10.4
)
46,363
46,619
(0.6
)
9.1
(9.7
)
Worldwide
23,706
24,804
(4.4
)
0.9
(5.3
)
94,943
93,775
1.3
6.1
(4.8
)
COVID-19 Vaccine
U.S.
0
213
*
*
-
120
634
(81.1
)
(81.1
)
-
International
689
1,405
(50.9
)
(45.0
)
(5.9
)
2,059
1,751
17.6
32.1
(14.5
)
Worldwide
689
1,619
(57.4
)
(52.2
)
(5.2
)
2,179
2,385
(8.6
)
2.0
(10.6
)
Worldwide
U.S.
12,516
11,950
4.7
4.7
-
48,460
46,522
4.2
4.2
-
International
10,501
11,236
(6.5
)
4.4
(10.9
)
44,304
44,868
(1.3
)
8.2
(9.5
)
Worldwide excluding COVID-19 Vaccine
$
23,017
23,186
(0.7
)
%
4.6
(5.3
)
$
92,764
91,390
1.5
%
6.2
(4.7
)
Note: Columns and rows within tables may not add due to rounding
* Percentage greater than 100% or not meaningful
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 QTD - Income Before Tax by Segment*
Dollars in Millions
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Consumer Health
Separation Costs
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment$
651
442
3,308
4,306
865
575
(153
)
(420
)
(470
)
(67
)
4,201
4,836
% to Sales
17.3
%
11.9
%
25.1
%
30.3
%
12.8
%
8.4
%
-0.6
%
-1.7
%
-2.0
%
-0.3
%
17.7
%
19.5
%
Intangible asset amortization expense
84
100
717
761
260
260
-
-
-
-
1,061
1,121
In-process research and development
-
-
173
-
-
-
-
-
-
-
173
-
Litigation related
72
122
61
(35
)
129
187
-
-
-
-
262
274
Loss/(gain) on securities
-
1
23
(237
)
(17
)
38
-
-
-
-
6
(198
)
Restructuring related
21
28
31
22
88
90
-
-
-
-
140
140
Acquisition, integration and divestiture related
-
-
(104
)
5
300
21
-
-
-
-
196
26
Medical Device Regulation
-
-
-
-
88
73
-
-
-
-
88
73
COVID-19 Vaccine related costs
-
-
821
-
-
-
-
-
-
-
821
-
Consumer Health separation costs
-
-
-
-
-
-
-
-
470
67
470
67
Other
-
-
-
-
-
-
-
-
-
-
-
-
Adjusted Income Before Tax by Segment$
828
693
5,030
4,822
1,713
1,244
(153
)
(420
)
-
-
7,418
6,339
% to Sales
22.0
%
18.6
%
38.2
%
33.9
%
25.3
%
18.1
%
-0.6
%
-1.7
%
0.0
%
0.0
%
31.3
%
25.6
%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 1/24/2023
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 YTD - Income Before Tax by Segment*
Dollars in Millions
Consumer Health
Separation Costs
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment$
2,930
1,573
15,901
17,969
4,607
4,373
(624
)
(1,072
)
(1,089
)
(67
)
21,725
22,776
% to Sales
19.6
%
10.5
%
30.3
%
34.8
%
16.8
%
16.2
%
-0.7
%
-1.1
%
-1.1
%
-0.1
%
22.9
%
24.3
%
Intangible asset amortization expense
361
414
2,911
3,258
1,033
1,025
-
-
-
-
4,305
4,697
In-process research and development
-
-
783
-
-
900
-
-
-
-
783
900
Litigation related
150
1,603
104
640
612
85
-
-
-
-
866
2,328
Loss/(gain) on securities
-
(18
)
696
(486
)
(6
)
(29
)
-
-
-
-
690
(533
)
Restructuring related
91
119
63
76
309
278
-
-
-
-
463
473
Acquisition, integration and divestiture related
-
-
(104
)
(562
)
300
84
-
-
-
-
196
(478
)
Medical Device Regulation
-
-
-
-
296
234
-
-
-
-
296
234
COVID-19 Vaccine related costs
-
-
1,474
-
-
-
-
-
-
-
1,474
-
Consumer Health separation costs
-
-
-
-
-
-
-
1,089
67
1,089
67
Other
-
-
-
-
-
-
(7
)
-
-
-
(7
)
-
Adjusted Income Before Tax by Segment$
3,532
3,691
21,828
20,895
7,151
6,950
(631
)
(1,072
)
-
-
31,880
30,464
% to Sales
23.6
%
24.5
%
41.5
%
40.4
%
26.1
%
25.7
%
-0.7
%
-1.1
%
0.0
%
0.0
%
33.6
%
32.5
%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 1/24/2023
Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
Consumer Health
separation tax
related costs
Fourth Quarter
In-process
research and
development
Acquisition, integration and
divestiture related (1)
(Loss)/gain on
securities
COVID-19 Vaccine
Related Costs
Consumer Health
separation costs
Tax legislation
and other tax
related
Fourth Quarter
Jan 1, 2023
GAAP
Intangible asset
amortization
Litigation related
Restructuring
related
Medical Device
Regulation
Other
Jan 1, 2023
Non-GAAP
Cost of products sold
$
7,765
(1,060
)
(36
)
(33
)
(160
)
(4
)
-
-
-
6,472
Selling, marketing and admin expenses
6,512
(9
)
-
(43
)
6,460
Research and development expense
3,841
-
(46
)
(114
)
-
3,681
Other (Income) / Expense
1,207
(1
)
(262
)
(20
)
(196
)
(6
)
(547
)
(423
)
-
-
(248
)
In-process research and development
173
(173
)
-
Restructuring
84
(84
)
-
Provision for taxes on income
681
165
(36
)
40
21
5
2
17
199
94
(35
)
47
-
1,200
Net Earnings
3,520
896
298
133
119
191
4
71
622
376
35
(47
)
-
6,218
Consumer Health
separation tax
related costs
Fourth Quarter
In-process
research and
development
Acquisition, integration and
divestiture related
(Loss)/gain on
securities
COVID-19 Vaccine
Related Costs
Consumer Health
separation costs
Tax legislation and
other tax related
Fourth Quarter
Jan 2, 2022
GAAP
Intangible asset
amortization
Litigation related
Restructuring
related
Medical Device
Regulation
Other
Jan 2, 2022
Non-GAAP
Cost of products sold
$
7,955
(1,111
)
(21
)
(26
)
6,797
Selling, marketing and admin expenses
7,154
(7
)
7,147
Research and development expense
4,720
-
(40
)
4,680
Other (Income) / Expense
9
(10
)
(274
)
(36
)
(26
)
198
-
(67
)
-
-
(206
)
In-process research and development
-
-
-
Restructuring
83
(83
)
-
Provision for taxes on income
100
162
49
-
27
6
(89
)
14
-
15
-
377
-
661
Net Earnings
4,736
959
225
-
113
20
(109
)
59
-
52
-
(377
)
-
5,678
Year to Date
Consumer Health
separation tax
related costs
Twelve Months
In-process
research and
development
Acquisition, integration and
divestiture related (1)
(Loss)/gain on
securities
COVID-19 Vaccine
Related Costs
Consumer Health
separation costs
Tax legislation
and other tax
related
Twelve Months
Jan 1, 2023
GAAP
Intangible asset
amortization
Litigation related
Restructuring
related
Medical Device
Regulation
Other
Jan 1, 2023
Non-GAAP
Cost of products sold
$
31,089
(4,292
)
(82
)
(109
)
(456
)
(4
)
26,146
Selling, marketing and admin expenses
24,765
(28
)
(45
)
24,692
Research and development expense
14,603
-
(159
)
(304
)
14,140
Other (Income) / Expense
1,871
(13
)
(866
)
(60
)
(196
)
(690
)
(714
)
(1,040
)
-
7
(1,701
)
In-process research and development
783
(783
)
-
-
-
Restructuring
321
(321
)
-
Provision for taxes on income
3,784
667
(125
)
178
81
5
166
56
360
206
(494
)
(40
)
(2
)
4,842
Net Earnings
17,941
3,638
991
605
382
191
524
240
1,114
883
494
40
(5
)
27,038
Consumer Health
separation tax
related costs
Twelve Months
In-process
research and development
Acquisition, integration and
divestiture related (1)
(Loss)/gain on
securities
COVID-19 Vaccine
Related Costs
Consumer Health
separation costs
Tax legislation
and other tax
related
Twelve Months
Jan 2, 2022
GAAP
Intangible asset
amortization
Litigation related
Restructuring
related
Medical Device
Regulation
Other
Jan 2, 2022
Non-GAAP
Cost of products sold
$
29,855
(4,661
)
(86
)
(85
)
25,023
Selling, marketing and admin expenses
24,659
(24
)
24,635
Research and development expense
14,714
-
(125
)
14,589
Other (Income) / Expense
489
(36
)
(2,328
)
(135
)
478
533
-
(67
)
-
-
(1,066
)
In-process research and development
900
(900
)
-
Restructuring
252
(252
)
-
Provision for taxes on income
1,898
667
481
202
86
(98
)
(116
)
44
-
15
-
1,090
-
4,269
Net Earnings
20,878
4,030
1,847
698
387
(380
)
(417
)
190
-
52
-
(1,090
)
-
26,195
(1) 2022 primarily includes costs related to the Abiomed acquisition. 2021 primarily includes gains on the divestitures of two Pharmaceutical brands outside of the United States.
