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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): 

July 16, 2020

Johnson & Johnson

 (Exact name of registrant as specified in its charter)

  

New Jersey			1-3215			22-1024240
(State or Other Jurisdiction of Incorporation)			(Commission File Number)			(IRS Employer Identification No.)

One Johnson & Johnson Plaza, New Brunswick, New Jersey  08933 

(Address of Principal Executive Offices)

 (Zip Code) 

Registrant's telephone number, including area code:

732-524-0400

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17

               CFR 240.14d-2(b)) 

☐             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17

               CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

        Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, Par Value $1.00			JNJ			New York Stock Exchange
0.250% Notes Due January 2022			JNJ			New York Stock Exchange
0.650% Notes Due May 2024			JNJ			New York Stock Exchange
5.50% Notes Due November 2024			JNJ			New York Stock Exchange
1.150% Notes Due November 2028			JNJ			New York Stock Exchange
1.650% Notes Due May 2035			JNJ			New York Stock Exchange

 

 

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Item 2.02                      Results of Operations and Financial Condition

 

On July 16, 2020, Johnson & Johnson issued the attached press release announcing its sales and earnings for the second quarter ended June 28, 2020.

 

Item 9.01            Financial Statements and Exhibits

(d)     Exhibits. 

 

Exhibit No.			Description of Exhibit
99.1			Press Release dated July 16, 2020 for the period ended June 28, 2020
99.2			Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the second quarter
104			The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Johnson & Johnson

(Registrant)

Date:

July 16, 2020

By:

/s/ Robert J. Decker, Jr.

Robert J. Decker, Jr. Controller (Principal Accounting Officer)

Exhibit 99.1

JOHNSON & JOHNSON REPORTS 2020 SECOND-QUARTER RESULTS:

•Sales of $18.3 billion reflecting a decline of 10.8%, operational decline of 9.0%* and adjusted operational decline of 8.8%*, primarily driven by the negative impact of the COVID-19 pandemic

•EPS of $1.36 decreased 34.6%; adjusted EPS of $1.67 decreased 35.3%*; 2019 included gain from sale of Advanced Sterilization Products (ASP) business

•Company increasing Full Year Sales and EPS guidance

New Brunswick, N.J. (July 16, 2020) – Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2020. “Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment,” said Alex Gorsky, Chairman and Chief Executive Officer. “Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.“ Mr. Gorsky continued, “We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good.”

OVERALL FINANCIAL RESULTS:

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

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REGIONAL SALES RESULTS:

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:

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

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SEGMENT COMMENTARY:

Consumer Health

Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.4%* as results were negatively impacted by the COVID-19 pandemic most notably reflected in skin health and beauty care products, followed by women’s health care products and international baby care products. Partially offsetting this impact was growth in over-the-counter products including TYLENOL analgesics; digestive health products and ZARBEE’S NATURALS; and LISTERINE mouthwash in oral care products. Both over-the-counter and oral care products were positively impacted by COVID-19.

Pharmaceutical

Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, 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, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 32.5%* primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, Vision and Interventional Solutions businesses.

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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 www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases available online in the Investors section of the Company’s website at news releases.

Regulatory Approvals			TREMFYA (guselkumab) – U.S. Food and Drug Administration (FDA) Approves for Adult Patients with Active Psoriatic Arthritis (PsA)¹			(press release)
						ZABDENO (Ad26.ZEBOV) and MVABEA (MVA-BN-Filo) – European Commission Approves Janssen’s Preventive Ebola Vaccine¹			(press release)
			DARZALEX (daratumumab) – European Commission (EC) Grants Marketing Authorisation for Subcutaneous Formulation for all Currently Approved Intravenous Formulation Indications			(press release)
			SIRTURO (bedaquiline) – U.S. FDA Approves New Pediatric Formulation as Part of Combination Therapy to Treat Children with Pulmonary Multidrug-Resistant Tuberculosis			(press release)
			DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – U.S. FDA Approves a new Subcutaneous Formulation of Daratumumab in the Treatment of Patients with Multiple Myeloma			(press release)
			IMBRUVICA (ibrutinib) – U.S.FDA Approves IMBRUVICA Plus Rituximab for Treatment of Patients with Chronic Lymphocytic Leukemia (CLL)			(press release)
Regulatory Submissions			SIMPONI ARIA (golimumab) – Submission to the U.S. Food and Drug Administration (FDA) for the Treatment of Polyarticular Juvenile Idiopathic Arthritis and Juvenile Psoriatic Arthritis			(press release)
Other			STELARA (ustekinumab) Discontinuation of Phase 3 LOTUS Study in Systemic Lupus Erythematosus			(press release)
						Johnson & Johnson Announces Acceleration of its COVID-19 Vaccine Candidate; Phase 1/2a Clinical Trial to Begin in Second Half of July			(press release)
						Biosense Webster Unveils Late-Breaking Results from PRECEPT Study in Patients with Persistent Atrial Fibrillation			(press release)

¹ Subsequent to the quarter

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FULL-YEAR 2020 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.

The estimated impact of the COVID-19 pandemic is included in the guidance below.

			July 2020			April 2020

($ in Billions, except EPS) 

Adjusted Operational Sales1,2 Change vs. Prior Year			(0.8%) - 1.0%			(3.0%) - 0.5%
Operational Sales2 Change vs. Prior Year			$81.0 to $82.5 (1.3%) - 0.5%			$79.2 to $82.2 (3.5%) - 0.0%
Estimated Reported Sales3 Change vs. Prior Year			$79.9 to $81.4 (2.6%) - (0.8%)			$77.5 to $80.5 (5.5%) - (2.0%)
Adjusted Operational EPS (Diluted)2,4 Change vs. Prior Year			$7.85 to $8.05 (9.6%) - (7.3%)			$7.65 to $8.05 (11.9%) - (7.3%)
Adjusted EPS (Diluted)3,4 Change vs. Prior Year			$7.75 to $7.95 (10.7%) - (8.4%)			$7.50 to $7.90 (13.6%) - (9.0%)

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: July 2020 = $1.12 Euro Average Rate: April 2020 = $1.09 (Illustrative purposes only)

⁴ Non-GAAP financial measure; excludes intangible amortization expense and special items

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 8:00 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 130 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.

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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. 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: 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, 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. 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 December 29, 2019, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Press Contacts: Investor Contacts:

Cristal Downing  Christopher DelOrefice  Matthew Stuckley

(732) 524-3283  (732) 524-2955   (732) 524-2617

(908) 616-8833 (M) 

Exhibit 99.2

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2020						2019						Total						Operations						Currency
Sales to customers by
geographic area
U.S.			$ 9,539						10,403						(8.3)			%			(8.3)						-
Europe			4,063						4,733						(14.2)						(11.5)						(2.7)
Western Hemisphere excluding U.S.			1,133						1,455						(22.1)						(8.9)						(13.2)
Asia-Pacific, Africa			3,601						3,971						(9.3)						(7.7)						(1.6)
International			8,797						10,159						(13.4)						(9.6)						(3.8)
Worldwide			$ 18,336						20,562						(10.8)			%			(9.0)						(1.8)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SIX MONTHS
															Percent Change
			2020						2019						Total						Operations						Currency
Sales to customers by
geographic area
U.S.			$ 20,238						20,532						(1.4)			%			(1.4)						-
Europe			8,890						9,342						(4.8)						(2.1)						(2.7)
Western Hemisphere excluding U.S.			2,635						2,958						(10.9)						(0.1)						(10.8)
Asia-Pacific, Africa			7,264						7,751						(6.3)						(4.9)						(1.4)
International			18,789						20,051						(6.3)						(2.9)						(3.4)
Worldwide			$ 39,027						40,583						(3.8)			%			(2.2)						(1.6)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2020						2019						Total						Operations						Currency
Sales to customers by
segment of business
Consumer Health
U.S.			$	1,557					1,537						1.3			%			1.3						—
International			1,739						2,007						(13.4)						(7.4)						(6.0)
			3,296						3,544						(7.0)						(3.6)						(3.4)
Pharmaceutical
U.S.			6,120						5,783						5.8						5.8						—
International			4,632						4,746						(2.4)						1.4						(3.8)
			10,752						10,529						2.1						3.9						(1.8)
Medical Devices
U.S.			1,862						3,083						(39.6)						(39.6)						—
International			2,426						3,406						(28.8)						(26.4)						(2.4)
			4,288						6,489						(33.9)						(32.7)						(1.2)
U.S.			9,539						10,403						(8.3)						(8.3)						—
International			8,797						10,159						(13.4)						(9.6)						(3.8)
Worldwide			$	18,336					20,562						(10.8)			%			(9.0)						(1.8)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SIX MONTHS
															Percent Change
			2020						2019						Total						Operations						Currency
Sales to customers by
segment of business
Consumer Health
U.S.			$	3,297					2,975						10.8			%			10.8						-
International			3,624						3,887						(6.8)						(1.9)						(4.9)
			6,921						6,862						0.9						3.6						(2.7)
Pharmaceutical
U.S.			12,181						11,365						7.2						7.2						-
International			9,705						9,408						3.2						6.7						(3.5)
			21,886						20,773						5.4						7.0						(1.6)
Medical Devices
U.S.			4,760						6,192						(23.1)						(23.1)						-
International			5,460						6,756						(19.2)						(16.8)						(2.4)
			10,220						12,948						(21.1)						(19.8)						(1.3)
U.S.			20,238						20,532						(1.4)						(1.4)						-
International			18,789						20,051						(6.3)						(2.9)						(3.4)
Worldwide			$	39,027					40,583						(3.8)			%			(2.2)						(1.6)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)			SECOND QUARTER
			2020																		2019																		Percent
									Percent												Percent						Increase
			Amount						to Sales						Amount						to Sales						(Decrease)
Sales to customers			$	18,336					100.0						$	20,562					100.0						(10.8)
Cost of products sold			6,579						35.9						6,940						33.8						(5.2)
Gross Profit			11,757						64.1						13,622						66.2						(13.7)
Selling, marketing and administrative expenses			4,993						27.2						5,546						27.0						(10.0)
Research and development expense			2,707						14.8						2,666						13.0						1.5
In-process research and development			6						0.0						—						—
Interest (income) expense, net			26						0.2						(5)						0.0
Other (income) expense, net			24						0.1						(1,683)						(8.2)
Restructuring			61						0.3						57						0.2
Earnings before provision for taxes on income			3,940						21.5						7,041						34.2						(44.0)
Provision for taxes on income			314						1.7						1,434						6.9						(78.1)
Net earnings			$	3,626					19.8						$	5,607					27.3						(35.3)
Net earnings per share (Diluted)			$	1.36											$	2.08											(34.6)
Average shares outstanding (Diluted)			2,665.5												2,691.7
Effective tax rate			8.0			%									20.4			%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income			$	5,337					29.1						$	8,614					41.9						(38.0)
Net earnings			$	4,446					24.2						$	6,950					33.8						(36.0)
Net earnings per share (Diluted)			$	1.67											$	2.58											(35.3)
Effective tax rate			16.7			%									19.3			%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.

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Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)			SIX MONTHS
			2020																		2019																		Percent
									Percent												Percent						Increase
			Amount						to Sales						Amount						to Sales						(Decrease)
Sales to customers			$	39,027					100.0						$	40,583					100.0						(3.8)
Cost of products sold			13,641						35.0						13,555						33.4						0.6
Gross Profit			25,386						65.0						27,028						66.6						(6.1)
Selling, marketing and administrative expenses			10,196						26.1						10,765						26.5						(5.3)
Research and development expense			5,287						13.5						5,524						13.6						(4.3)
In-process research and development			6						0.0						890						2.2
Interest (income) expense, net			(16)						0.0						(2)						0.0
Other (income) expense, net			(655)						(1.7)						(1,705)						(4.2)
Restructuring			119						0.3						93						0.3
Earnings before provision for taxes on income			10,449						26.8						11,463						28.2						(8.8)
Provision for taxes on income			1,027						2.7						2,107						5.1						(51.3)
Net earnings			$	9,422					24.1						$	9,356					23.1						0.7
Net earnings per share (Diluted)			$	3.53											$	3.47											1.7
Average shares outstanding (Diluted)			2,671.0												2,697.0
Effective tax rate			9.8			%									18.4			%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income			$	12,581					32.2						$	15,481					38.1						(18.7)
Net earnings			$	10,600					27.2						$	12,611					31.1						(15.9)
Net earnings per share (Diluted)			$	3.97											$	4.68											(15.2)
Effective tax rate			15.7			%									18.5			%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.

---

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
									Second Quarter
			(Dollars in Millions Except Per Share Data)						2020						2019
			Net Earnings, after-tax as reported						$3,626						$5,607
			Pre-tax Adjustments
			Intangible Asset Amortization expense						1,127						1,118
			Litigation expense, net						613						409
			IPR&D						6						—
			Restructuring related						115						142
			Acquisition and Integration related						29						55
			Unrealized (gains)/losses on securities						(533)						(148)
			Medical Device Regulation 1						37						—
			Other						3						(3)
			Tax Adjustments
			Tax impact on special item adjustments 2						(253)						(230)
			Tax legislation and related impacts						(324)						—
			Adjusted Net Earnings, after-tax						$4,446						$6,950
			Average shares outstanding (Diluted)						2,665.5						2,691.7
			Adjusted net earnings per share (Diluted)						$1.67						$2.58
			Operational adjusted net earnings per share (Diluted)						$1.69
			Notes:
			1 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 are 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 Medical Devices operating segments' measures of profit and loss used for making operating decisions and assessing performance.
			2 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 Measures
									Six Months Ended
			(Dollars in Millions Except Per Share Data)						2020						2019
			Net Earnings, after-tax as reported						$9,422						$9,356
			Pre-tax Adjustments
			Intangible Asset Amortization expense						2,245						2,248
			Litigation expense, net						733						832
			IPR&D						6						890
			Restructuring related						233						232
			Acquisition and Integration related ¹						(933)						122
			Unrealized (gains)/losses on securities						(206)						(306)
			Medical Device Regulation 2						51						-
			Other						3						-
			Tax Adjustments
			Tax impact on special item adjustments 3						(520)						(763)
			Tax legislation and related impacts						(434)						-
			Adjusted Net Earnings, after-tax						$10,600						$12,611
			Average shares outstanding (Diluted)						2,671.0						2,697.0
			Adjusted net earnings per share (Diluted)						$3.97						$4.68
			Operational adjusted net earnings per share (Diluted)						$4.01
			Notes:
			1 Acquisition and integration related costs for the six months of 2020 primarily includes a $983M Contingent Consideration reversal related to the timing of certain developmental milestones associated with the Auris Health acquisition.
			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 are 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 Medical Devices operating segments' measures of profit and loss used for making operating decisions and assessing performance.
			3 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 (A)
SECOND QUARTER 2020 ACTUAL vs. 2019 ACTUAL
Segments
						Consumer Health						Pharmaceutical						Medical Devices						Total
WW As Reported						(7.0)		%				2.1		%				(33.9)		%				(10.8)		%
U.S.						1.3		%				5.8		%				(39.6)		%				(8.3)		%
International						(13.4)		%				(2.4)		%				(28.8)		%				(13.4)		%
WW Currency						(3.4)						(1.8)						(1.2)						(1.8)
U.S.						—						—						—						—
International						(6.0)						(3.8)						(2.4)						(3.8)
WW Operational						(3.6)		%				3.9		%				(32.7)		%				(9.0)		%
U.S.						1.3		%				5.8		%				(39.6)		%				(8.3)		%
International						(7.4)		%				1.4		%				(26.4)		%				(9.6)		%
General Surgery
Advanced Sterilization Products																		0.1						0.1
U.S.																		0.0						0.0
International																		0.3						0.2
Baby Care
Baby Center						0.3																		0.0
U.S.						0.7																		0.1
International						0.0																		0.0
All Other Acquisitions and Divestitures						0.0						0.0						0.1						0.1
U.S.						0.0						0.0						0.1						0.0
International						(0.1)						0.1						0.0						0.0
WW Adjusted Operational						(3.4)		%				3.9		%				(32.5)		%				(8.8)		%
U.S.						2.0		%				5.8		%				(39.5)		%				(8.1)		%
International						(7.5)		%				1.5		%				(26.1)		%				(9.4)		%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.

---

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth (A)
SIX MONTHS 2020 ACTUAL vs. 2019 ACTUAL
Segments
						Consumer Health						Pharmaceutical						Medical Devices						Total
WW As Reported						0.9		%				5.4		%				(21.1)		%				(3.8)		%
U.S.						10.8		%				7.2		%				(23.1)		%				(1.4)		%
International						(6.8)		%				3.2		%				(19.2)		%				(6.3)		%
WW Currency						(2.7)						(1.6)						(1.3)						(1.6)
U.S.						—						—						—						—
International						(4.9)						(3.5)						(2.4)						(3.4)
WW Operational						3.6		%				7.0		%				(19.8)		%				(2.2)		%
U.S.						10.8		%				7.2		%				(23.1)		%				(1.4)		%
International						(1.9)		%				6.7		%				(16.8)		%				(2.9)		%
Skin Health / Beauty
Dr. Ci Labo - Japan						(0.2)																		0.0
U.S.						0.0																		0.0
International						(0.4)																		(0.1)
General Surgery
Advanced Sterilization Products																		1.0						0.4
U.S.																		1.1						0.4
International																		0.9						0.4
Baby Care
Baby Center						0.3																		0.0
U.S.						0.7																		0.1
International						0.0																		0.0
All Other Acquisitions and Divestitures						(0.1)						0.1						0.0						0.0
U.S.						0.0						0.1						0.0						0.1
International						(0.2)						0.0						0.0						0.0
WW Adjusted Operational						3.6		%				7.0		%				(18.8)		%				(1.7)		%
U.S.						11.5		%				7.2		%				(22.0)		%				(0.8)		%
International						(2.5)		%				6.7		%				(15.9)		%				(2.6)		%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2) (3)
BABY CARE
US						$			96						99						(3.5)		%	(3.5)		%	—		%
Intl									260						344						(24.3)			(16.6)			(7.7)
WW									356						443						(19.7)			(13.6)			(6.1)
ORAL CARE
US									170						155						9.7			9.7			—
Intl									227						234						(2.8)			4.0			(6.8)
WW									397						389						2.2			6.3			(4.1)
OTC
US									627						484						29.6			29.6			—
Intl									522						580						(10.1)			(5.0)			(5.1)
WW									1,149						1,064						7.9			10.7			(2.8)
SKIN HEALTH / BEAUTY (4)
US									536						663						(19.2)			(19.2)			—
Intl									471						539						(12.5)			(8.2)			(4.3)
WW									1,007						1,202						(16.2)			(14.3)			(1.9)
WOMEN'S HEALTH
US									3						3						(2.9)			(2.9)			—
Intl									199						250						(20.4)			(12.0)			(8.4)
WW									202						253						(20.1)			(11.8)			(8.3)
WOUND CARE / OTHER
US									126						132						(4.7)			(4.7)			—
Intl									59						61						(2.4)			3.7			(6.1)
WW									185						193						(4.0)			(2.1)			(1.9)
TOTAL CONSUMER HEALTH
US									1,557						1,537						1.3			1.3			—
Intl									1,739						2,007						(13.4)			(7.4)			(6.0)
WW						$			3,296						3,544						(7.0)		%	(3.6)		%	(3.4)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5)
IMMUNOLOGY
US						$			2,362						2,379						(0.7)		%	(0.7)		%	—		%
Intl									1,161						1,087						6.8			11.0			(4.2)
WW									3,523						3,466						1.6			3.0			(1.4)
REMICADE
US									593						801						(25.8)			(25.8)			—
US Exports (6)									133						62						*			*			—
Intl									208						244						(14.5)			(8.7)			(5.8)
WW									935						1,107						(15.5)			(14.2)			(1.3)
SIMPONI / SIMPONI ARIA
US									256						281						(8.7)			(8.7)			—
Intl									289						282						2.6			6.8			(4.2)
WW									546						563						(3.0)			(0.9)			(2.1)
STELARA
US									1,138						1,058						7.5			7.5			—
Intl									558						499						11.9			15.5			(3.6)
WW									1,697						1,558						8.9			10.1			(1.2)
TREMFYA
US									241						176						36.7			36.7			—
Intl									101						59						71.0			73.4			(2.4)
WW									342						235						45.4			46.0			(0.6)
OTHER IMMUNOLOGY
US									—						—						—			—			—
Intl									3						3						11.8			21.6			(9.8)
WW									3						3						11.8			21.6			(9.8)
INFECTIOUS DISEASES
US									416						387						7.4			7.4			—
Intl									463						475						(2.5)			2.6			(5.1)
WW									878						862						1.9			4.7			(2.8)
EDURANT / rilpivirine
US									10						12						(14.0)			(14.0)			—
Intl									246						198						24.5			27.7			(3.2)
WW									256						210						22.2			25.2			(3.0)
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US									379						344						10.5			10.5			—
Intl									130						191						(32.0)			(26.1)			(5.9)
WW									510						535						(4.7)			(2.6)			(2.1)
OTHER INFECTIOUS DISEASES
US									25						31						(18.7)			(18.7)			—
Intl									87						86						1.0			8.7			(7.7)
WW									113						117						(4.2)			1.5			(5.7)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) (Continued)
NEUROSCIENCE
US						$			778						664						17.4		%	17.4		%	—		%
Intl									809						875						(7.6)			(4.1)			(3.5)
WW									1,587						1,538						3.2			5.2			(2.0)
CONCERTA / methylphenidate
US									55						15						*			*			—
Intl									94						123						(23.0)			(20.2)			(2.8)
WW									149						137						8.7			11.2			(2.5)
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US									576						506						13.8			13.8			—
Intl									303						312						(2.8)			0.3			(3.1)
WW									879						818						7.5			8.6			(1.1)
RISPERDAL CONSTA
US									74						81						(9.3)			(9.3)			—
Intl									79						101						(21.2)			(18.1)			(3.1)
WW									153						182						(15.9)			(14.2)			(1.7)
OTHER NEUROSCIENCE
US									75						62						21.5			21.5			—
Intl									331						340						(2.5)			1.7			(4.2)
WW									406						401						1.2			4.7			(3.5)
ONCOLOGY
US									1,181						1,013						16.6			16.6			—
Intl									1,609						1,684						(4.4)			(0.9)			(3.5)
WW									2,791						2,697						3.5			5.7			(2.2)
DARZALEX
US									492						369						32.9			32.9			—
Intl									409						405						1.2			5.9			(4.7)
WW									901						774						16.3			18.8			(2.5)
ERLEADA
US									136						62						*			*			—
Intl									33						7						*			*			*
WW									170						69						*			*			*
IMBRUVICA
US									447						367						21.5			21.5			—
Intl									502						463						8.3			13.4			(5.1)
WW									949						831						14.1			17.0			(2.9)
VELCADE
US									—						—						—			—			—
Intl									98						224						(56.1)			(55.2)			(0.9)
WW									98						224						(56.1)			(55.2)			(0.9)
ZYTIGA / abiraterone acetate
US									87						198						(55.6)			(55.6)			—
Intl									480						500						(3.9)			(2.0)			(1.9)
WW									568						698						(18.6)			(17.2)			(1.4)
OTHER ONCOLOGY
US									20						16						22.9			22.9			—
Intl									87						85						2.2			5.9			(3.7)
WW									106						101						5.5			8.6			(3.1)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) (Continued)
PULMONARY HYPERTENSION
US						$			545						439						24.2		%	24.2		%	—		%
Intl									243						251						(3.3)			(1.0)			(2.3)
WW									789						690						14.2			15.0			(0.8)
OPSUMIT
US									256						203						26.1			26.1			—
Intl									150						146						3.0			5.7			(2.7)
WW									406						348						16.5			17.6			(1.1)
UPTRAVI
US									254						175						44.5			44.5			—
Intl									28						28						4.0			7.3			(3.3)
WW									282						203						39.0			39.5			(0.5)
OTHER PULMONARY HYPERTENSION
US									37						61						(40.2)			(40.2)			—
Intl									64						78						(17.6)			(16.4)			(1.2)
WW									101						140						(27.5)			(26.9)			(0.6)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) Continued)
CARDIOVASCULAR / METABOLISM / OTHER
US						$			837						902						(7.2)		%	(7.2)		%	—		%
Intl									347						373						(7.0)			(2.4)			(4.6)
WW									1,184						1,275						(7.1)			(5.8)			(1.3)
XARELTO
US									559						549						1.7			1.7			—
Intl									—						—						—			—			—
WW									559						549						1.7			1.7			—
INVOKANA / INVOKAMET
US									132						132						(0.8)			(0.8)			—
Intl									47						43						9.1			14.8			(5.7)
WW									179						177						1.6			3.1			(1.5)
PROCRIT / EPREX
US									70						113						(38.3)			(38.3)			—
Intl									66						70						(5.0)			(2.3)			(2.7)
WW									136						183						(25.6)			(24.6)			(1.0)
OTHER
US									78						107						(27.7)			(27.7)			—
Intl									234						260						(10.2)			(5.3)			(4.9)
WW									312						368						(15.3)			(11.8)			(3.5)
TOTAL PHARMACEUTICAL
US									6,120						5,783						5.8			5.8			—
Intl									4,632						4,746						(2.4)			1.4			(3.8)
WW						$			10,752						10,529						2.1		%	3.9		%	(1.8)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
MEDICAL DEVICES SEGMENT (2) (5)
INTERVENTIONAL SOLUTIONS
US						$			255						366						(30.5)		%	(30.5)		%	—		%
Intl									335						385						(12.8)			(10.9)			(1.9)
WW									590						750						(21.5)			(20.5)			(1.0)
ORTHOPAEDICS
US									869						1,331						(34.7)			(34.7)			—
Intl									583						894						(34.8)			(32.6)			(2.2)
WW									1,451						2,224						(34.7)			(33.9)			(0.8)
HIPS
US									137						216						(36.5)			(36.5)			—
Intl									88						147						(39.8)			(37.3)			(2.5)
WW									226						364						(37.8)			(36.8)			(1.0)
KNEES
US									108						218						(50.5)			(50.5)			—
Intl									66						153						(56.8)			(55.3)			(1.5)
WW									174						372						(53.1)			(52.5)			(0.6)
TRAUMA
US									354						407						(12.9)			(12.9)			—
Intl									198						265						(25.2)			(22.6)			(2.6)
WW									553						672						(17.8)			(16.7)			(1.1)
SPINE, SPORTS & OTHER (7)
US									270						490						(45.0)			(45.0)			—
Intl									230						328						(29.9)			(27.9)			(2.0)
WW									499						818						(39.0)			(38.2)			(0.8)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2020						2019						Reported			Operational (1)			Currency
MEDICAL DEVICES SEGMENT (2) (5) (Continued)
SURGERY
US						$			490						926						(47.0)		%	(47.0)		%	—		%
Intl									1,060						1,427						(25.7)			(22.6)			(3.1)
WW									1,551						2,353						(34.1)			(32.2)			(1.9)
ADVANCED
US									277						396						(30.0)			(30.0)			—
Intl									498						633						(21.2)			(18.4)			(2.8)
WW									775						1,029						(24.6)			(22.9)			(1.7)
GENERAL
US									213						530						(59.8)			(59.8)			—
Intl									562						794						(29.2)			(26.0)			(3.2)
WW									775						1,325						(41.5)			(39.5)			(2.0)
VISION
US									248						461						(46.1)			(46.1)			—
Intl									447						701						(36.1)			(34.8)			(1.3)
WW									695						1,161						(40.1)			(39.3)			(0.8)
CONTACT LENSES / OTHER
US									203						333						(39.0)			(39.0)			—
Intl									352						509						(30.9)			(29.6)			(1.3)
WW									554						842						(34.1)			(33.3)			(0.8)
SURGICAL
US									45						128						(64.6)			(64.6)			—
Intl									96						191						(49.9)			(48.8)			(1.1)
WW									141						319						(55.8)			(55.2)			(0.6)
TOTAL MEDICAL DEVICES
US									1,862						3,083						(39.6)			(39.6)			—
Intl									2,426						3,406						(28.8)			(26.4)			(2.4)
WW						$			4,288						6,489						(33.9)		%	(32.7)		%	(1.2)		%

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2) (3)
BABY CARE
US						$			188						186						1.2		%	1.2		%	—%
Intl									529						651						(18.7)			(12.6)			(6.1)
WW									717						837						(14.3)			(9.5)			(4.8)
ORAL CARE
US									346						306						12.9			12.9			—
Intl									446						450						(0.8)			4.6			(5.4)
WW									792						756						4.8			8.0			(3.2)
OTC
US									1,316						991						32.8			32.8			—
Intl									1,181						1,160						1.8			6.0			(4.2)
WW									2,497						2,151						16.1			18.3			(2.2)
SKIN HEALTH / BEAUTY (4)
US									1,195						1,251						(4.5)			(4.5)			—
Intl									929						1,041						(10.7)			(7.4)			(3.3)
WW									2,124						2,292						(7.3)			(5.8)			(1.5)
WOMEN'S HEALTH
US									7						6						14.3			14.3			—
Intl									427						472						(9.6)			(2.1)			(7.5)
WW									434						478						(9.3)			(1.9)			(7.4)
WOUND CARE / OTHER
US									245						234						4.7			4.7			—
Intl									111						114						(1.9)			2.8			(4.7)
WW									356						348						2.6			4.1			(1.5)
TOTAL CONSUMER HEALTH
US									3,297						2,975						10.8			10.8			—
Intl									3,624						3,887						(6.8)			(1.9)			(4.9)
WW						$			6,921						6,862						0.9		%	3.6		%	(2.7)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5)
IMMUNOLOGY
US						$			4,772						4,542						5.1		%	5.1		%	—%
Intl									2,389						2,175						9.8			13.7			(3.9)
WW									7,161						6,717						6.6			7.9			(1.3)
REMICADE
US									1,218						1,575						(22.7)			(22.7)			—
US Exports (6)									243						138						75.7			75.7			—
Intl									464						496						(6.4)			(1.6)			(4.8)
WW									1,925						2,209						(12.9)			(11.8)			(1.1)
SIMPONI / SIMPONI ARIA
US									528						544						(2.9)			(2.9)			—
Intl									547						543						0.8			4.8			(4.0)
WW									1,075						1,087						(1.1)			1.0			(2.1)
STELARA
US									2,355						1,940						21.4			21.4			—
Intl									1,161						1,022						13.6			16.9			(3.3)
WW									3,516						2,963						18.7			19.8			(1.1)
TREMFYA
US									428						344						24.4			24.4			—
Intl									210						108						94.0			97.1			(3.1)
WW									638						452						41.1			41.8			(0.7)
OTHER IMMUNOLOGY
US									—						—						—			—			—
Intl									6						6						2.7			8.4			(5.7)
WW									6						6						2.7			8.4			(5.7)
INFECTIOUS DISEASES
US									852						744						14.5			14.5			—
Intl									946						964						(1.8)			2.7			(4.5)
WW									1,798						1,708						5.3			7.8			(2.5)
EDURANT / rilpivirine
US									22						24						(6.9)			(6.9)			—
Intl									458						397						15.4			18.4			(3.0)
WW									480						421						14.1			17.0			(2.9)
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US									775						659						17.7			17.7			—
Intl									314						399						(21.4)			(15.8)			(5.6)
WW									1,089						1,058						2.9			5.0			(2.1)
OTHER INFECTIOUS DISEASES
US									54						61						(11.2)			(11.2)			—
Intl									174						168						3.8			9.4			(5.6)
WW									229						229						(0.2)			3.9			(4.1)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) (Continued)
NEUROSCIENCE
US						$			1,526						1,387						10.1		%	10.1		%	—%
Intl									1,719						1,780						(3.5)			(0.5)			(3.0)
WW									3,245						3,167						2.5			4.1			(1.6)
CONCERTA / methylphenidate
US									107						112						(4.2)			(4.2)			—
Intl									212						239						(11.0)			(8.6)			(2.4)
WW									320						351						(8.9)			(7.2)			(1.7)
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US									1,120						989						13.2			13.2			—
Intl									642						619						3.7			6.7			(3.0)
WW									1,762						1,608						9.5			10.7			(1.2)
RISPERDAL CONSTA
US									150						158						(4.9)			(4.9)			—
Intl									173						203						(14.9)			(11.9)			(3.0)
WW									323						361						(10.5)			(8.9)			(1.6)
OTHER NEUROSCIENCE
US									150						128						16.8			16.8			—
Intl									691						719						(3.9)			(0.8)			(3.1)
WW									841						847						(0.7)			1.8			(2.5)
ONCOLOGY
US									2,356						1,975						19.3			19.3			—
Intl									3,448						3,240						6.4			9.9			(3.5)
WW									5,804						5,215						11.3			13.5			(2.2)
DARZALEX
US									955						721						32.3			32.3			—
Intl									883						682						29.6			34.7			(5.1)
WW									1,838						1,403						31.0			33.5			(2.5)
ERLEADA
US									255						120						*			*			—
Intl									57						10						*			*			*
WW									313						130						*			*			*
IMBRUVICA
US									879						716						22.6			22.6			—
Intl									1,101						898						22.6			27.4			(4.8)
WW									1,980						1,615						22.6			25.3			(2.7)
VELCADE
US									—						—						—			—			—
Intl									206						487						(57.7)			(56.9)			(0.8)
WW									206						487						(57.7)			(56.9)			(0.8)
ZYTIGA / abiraterone acetate
US									226						383						(40.9)			(40.9)			—
Intl									1,032						994						3.8			6.1			(2.3)
WW									1,258						1,377						(8.6)			(7.0)			(1.6)
OTHER ONCOLOGY
US									42						34						21.4			21.4			—
Intl									169						169						(0.3)			3.3			(3.6)
WW									210						203						3.4			6.3			(2.9)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) (Continued)
PULMONARY HYPERTENSION
US						$			1,031						869						18.7		%	18.7		%	—%
Intl									503						477						5.3			7.9			(2.6)
WW									1,534						1,346						13.9			14.9			(1.0)
OPSUMIT
US									485						375						29.3			29.3			—
Intl									310						279						11.2			14.1			(2.9)
WW									795						654						21.6			22.8			(1.2)
UPTRAVI
US									466						351						32.6			32.6			—
Intl									66						50						33.6			37.6			(4.0)
WW									532						401						32.7			33.2			(0.5)
OTHER PULMONARY HYPERTENSION
US									81						143						(43.5)			(43.5)			—
Intl									126						149						(15.1)			(13.7)			(1.4)
WW									207						292						(29.0)			(28.3)			(0.7)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (5) (Continued)
CARDIOVASCULAR / METABOLISM / OTHER
US						$			1,643						1,849						(11.1)		%	(11.1)		%	—%
Intl									701						771						(9.1)			(5.6)			(3.5)
WW									2,344						2,620						(10.5)			(9.5)			(1.0)
XARELTO
US									1,086						1,091						(0.5)			(0.5)			—
Intl									—						—						—			—			—
WW									1,086						1,091						(0.5)			(0.5)			—
INVOKANA / INVOKAMET
US									249						286						(13.0)			(13.0)			—
Intl									105						92						14.1			18.1			(4.0)
WW									354						379						(6.4)			(5.5)			(0.9)
PROCRIT / EPREX
US									146						261						(44.1)			(44.1)			—
Intl									145						148						(2.2)			(0.1)			(2.1)
WW									291						409						(28.9)			(28.2)			(0.7)
OTHER
US									163						211						(22.9)			(22.9)			—
Intl									451						531						(15.0)			(11.3)			(3.7)
WW									614						742						(17.3)			(14.6)			(2.7)
TOTAL PHARMACEUTICAL
US									12,181						11,365						7.2			7.2			—
Intl									9,705						9,408						3.2			6.7			(3.5)
WW						$			21,886						20,773						5.4		%	7.0		%	(1.6)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
MEDICAL DEVICES SEGMENT (2) (5)
INTERVENTIONAL SOLUTIONS
US						$			620						709						(12.6)		%	(12.6)		%	—%
Intl									697						774						(9.9)			(8.0)			(1.9)
WW									1,317						1,482						(11.2)			(10.2)			(1.0)
ORTHOPAEDICS
US									2,119						2,649						(20.0)			(20.0)			—
Intl									1,371						1,779						(22.9)			(20.6)			(2.3)
WW									3,489						4,428						(21.2)			(20.3)			(0.9)
HIPS
US									343						429						(20.1)			(20.1)			—
Intl									220						295						(25.4)			(22.8)			(2.6)
WW									563						725						(22.3)			(21.2)			(1.1)
KNEES
US									322						441						(27.1)			(27.1)			—
Intl									196						299						(34.6)			(32.7)			(1.9)
WW									517						741						(30.1)			(29.3)			(0.8)
TRAUMA
US									761						824						(7.6)			(7.6)			—
Intl									445						533						(16.5)			(13.9)			(2.6)
WW									1,207						1,357						(11.1)			(10.0)			(1.1)
SPINE, SPORTS & OTHER (7)
US									693						955						(27.4)			(27.4)			—
Intl									510						651						(21.7)			(19.6)			(2.1)
WW									1,202						1,606						(25.1)			(24.3)			(0.8)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2020						2019						Reported			Operational (1)			Currency
MEDICAL DEVICES SEGMENT (2) (5) (Continued)
SURGERY
US						$			1,334						1,927						(30.8)		%	(30.8)		%	—%
Intl									2,317						2,821						(17.9)			(14.8)			(3.1)
WW									3,651						4,748						(23.1)			(21.3)			(1.8)
ADVANCED
US									658						800						(17.7)			(17.7)			—
Intl									1,065						1,209						(11.9)			(8.9)			(3.0)
WW									1,723						2,009						(14.2)			(12.4)			(1.8)
GENERAL
US									676						1,127						(40.0)			(40.0)			—
Intl									1,252						1,612						(22.4)			(19.2)			(3.2)
WW									1,928						2,739						(29.6)			(27.8)			(1.8)
VISION
US									687						907						(24.2)			(24.2)			—
Intl									1,075						1,383						(22.3)			(20.8)			(1.5)
WW									1,762						2,290						(23.0)			(22.2)			(0.8)
CONTACT LENSES / OTHER
US									549						654						(16.1)			(16.1)			—
Intl									819						1,011						(19.0)			(17.6)			(1.4)
WW									1,368						1,666						(17.9)			(17.0)			(0.9)
SURGICAL
US									138						253						(45.3)			(45.3)			—
Intl									256						371						(31.0)			(29.6)			(1.4)
WW									394						624						(36.8)			(36.0)			(0.8)
TOTAL MEDICAL DEVICES
US									4,760						6,192						(23.1)			(23.1)			—
Intl									5,460						6,756						(19.2)			(16.8)			(2.4)
WW						$			10,220						12,948						(21.1)		%	(19.8)		%	(1.3)		%
Note: Column 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) Previously referred to as Consumer
(4) Previously referred to as Beauty
(5) Certain prior year amounts have been reclassified to conform to current year product disclosures
(6) Reported as U.S. sales
(7) Previously referred to as Spine & Other