Johnson & Johnson Reports Q4 and Full-Year 2022 Results

24 Jan 2023
www.biospace.com
Clinical ResultDrug ApprovalPhase 2Phase 3Financial Statement
2022 Fourth-Quarter reported sales decline of 4.4% to $23.7 Billion primarily driven by unfavorable foreign exchange and reduced COVID-19 VaccineCOVID-19 Vaccine sales vs. prior year. Operational growth excluding COVID-19 VaccineCOVID-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 VaccineCOVID-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 inhibitorandrogen 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 . 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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 VaccineCOVID-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.
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