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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): 

August 30, 2023

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
0.650% Notes Due May 2024			JNJ24C			New York Stock Exchange
5.50% Notes Due November 2024			JNJ24BP			New York Stock Exchange
1.150% Notes Due November 2028			JNJ28			New York Stock Exchange
1.650% Notes Due May 2035			JNJ35			New York Stock Exchange

 

 

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Item 2.02     Results of Operations and Financial Condition

Johnson & Johnson completed an exchange offer to finalize the separation of Kenvue Inc. (the "Kenvue Separation"). On August 30, 2023, Johnson & Johnson issued the attached press release (Exhibit 99.1) providing updated financials and 2023 guidance following completion of the Kenvue Separation.

 

Item 9.01    Financial Statements and Exhibits

(d)     Exhibits. 

 

Exhibit No.			Description of Exhibit
99.1			Press Release dated August 30, 2023
99.2			Updated Financial Data
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:

August 30, 2023

By:

/s/ Robert J. Decker, Jr.

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

Exhibit 99.1

Johnson & Johnson Announces Updated Financials and 2023 Guidance Following Completion of the Kenvue Separation

•Company expects increased 2023 Reported Sales Growth of 7.0% - 8.0%, Operational Sales Growth of 7.5% - 8.5%, and Adjusted Operational Sales Growth of 6.2% - 7.2%; Figures exclude the COVID-19 Vaccine

•Company expects 2023 Adjusted Reported Earnings Per Share (EPS) of $10.00 - $10.10, reflecting increased growth of 12.5% at the mid-point and Adjusted Operational EPS of $9.90 - $10.00, reflecting increased growth of 11.5% at the mid-point

•Company reduced outstanding share count by approximately 191 million; 2023 guidance reflects only a partial-year benefit of approximately 73.5 million shares or $0.28 benefit to EPS

•Company secured $13.2 billion in cash proceeds from the Kenvue debt offering and initial public offering and maintains 9.5% of equity stake in Kenvue

•Company maintains its quarterly dividend of $1.19 per share

New Brunswick, N.J. (August 30, 2023) – Johnson & Johnson (NYSE: JNJ) (“the Company”) today announced updates to its financials and 2023 guidance which reflect its operations as a company focused on transformational innovation in Pharmaceutical and MedTech. The Company has published a recorded webinar for investors to provide additional context behind the updated financials and 2023 guidance found in this release, which may be accessed by visiting the Investors section of the Company's website at webcasts & presentations.

“The completion of this transaction uniquely positions Johnson & Johnson as a Pharmaceutical and MedTech company focused on delivering transformative healthcare solutions to patients,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “We are incredibly proud of the focus and dedication of our employees worldwide to achieve this milestone, which we are confident will unlock near- and long-term value for all of our stakeholders.”

As previously announced, the Company recently completed an exchange offer to finalize the separation of Kenvue Inc., formerly Johnson & Johnson’s Consumer Health business. As a result of the completion of the exchange offer, Johnson & Johnson will now present its Consumer Health business financial results as discontinued operations, including a gain of approximately $20 billion in the third quarter of 2023.

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Unless otherwise noted, the financial results and earnings guidance included below have been recast to reflect the continuing operations of Johnson & Johnson.

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

Note: values may have been rounded

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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UPDATED FULL-YEAR 2023 GUIDANCE:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

($ in Billions, except EPS; Shares in Millions)			August 2023 (excl. Consumer Health)			July 2023 (incl. Consumer Health)6
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point			6.2% – 7.2% / 6.7%			6.0% – 7.0% / 6.5%
Operational Sales2,5 / Mid-point Change vs. Prior Year / Mid-point			$83.6B – $84.4B / $84.0B 7.5% – 8.5% / 8.0%			$99.3B – $100.3B / $99.8B 7.0% – 8.0% / 7.5%
Reported Sales3,5 / Mid-point Change vs. Prior Year / Mid-point			$83.2B – $84.0B / $83.6B 7.0% – 8.0% / 7.5%			$98.8B – $99.8B / $99.3B 6.5% – 7.5% / 7.0%
Adjusted Operational EPS (Diluted)2,4 / Mid-point Change vs. Prior Year / Mid-point			$9.90 – $10.00 / $9.95 11.0% – 12.0% / 11.5%			$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point			$10.00 – $10.10 / $10.05 12.0% – 13.0% / 12.5%			$10.70 – $10.80 / $10.75 5.5% – 6.5% / 6.0%
Average Shares Outstanding (Diluted)			~2,557.28			2,630.77

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 2023 = $1.09 (Illustrative purposes only)

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

5 Excludes COVID-19 Vaccine

6 The July 2023 financial measures that were previously communicated reflect amounts before the separation of Kenvue and therefore include the Consumer Health results

7 Average shares outstanding (Diluted) as reported on Q2 2023 Form 10-Q

8 Full Year 2023 Projected Average Shares Outstanding (Diluted) only reflects impact from the Kenvue exchange offer

Note: percentages may have been rounded

Following completion of the Kenvue exchange offer, the Company has reduced its outstanding share count by the approximately 191 million shares of common stock accepted in the exchange offer.

The weighted average shares outstanding used in the calculation of the August 2023 Guidance for Adjusted Diluted EPS reflects the net reduction of approximately 73.5 million shares of Johnson & Johnson outstanding common stock as a result of the Kenvue exchange offer. Because this net reduction occurred on August 23, 2023, Johnson & Johnson will recognize only a partial-year benefit of $0.28 to its full-year 2023 Adjusted Diluted EPS.

The Company generated $13.2 billion in cash proceeds as result of the Kenvue debt offering and initial public offering. Additionally, Johnson & Johnson maintains a 9.5% stake in Kenvue common stock, which provides the Company the opportunity to monetize the retained stake in a tax efficient manner in the next year, subject to a

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current 90-day lockup agreement. Johnson & Johnson is under no obligation to do so if market conditions are not supportive.

The Company will maintain its quarterly dividend of $1.19 per share.

WEBINAR INFORMATION:

Johnson & Johnson has published a recorded webinar for investors to provide additional context behind the updated financials and 2023 guidance found in this release. This webinar, along with supplemental information, may be accessed by visiting the Investors section of the Company's website at webcasts & 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, most diversified healthcare products 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 release and the Investors section of the Company's website at webcasts & presentations.

Copies of the financial schedules accompanying this release are available on the Company’s website at webcasts & presentations. These schedules include supplementary sales data, a condensed consolidated statement of earnings, and reconciliations of non-GAAP financial measures.

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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, and 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: 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, including restructuring 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 realize the anticipated benefits from the separation of the Company’s Consumer Health business; and the New Consumer Health Company’s ability to succeed as a standalone publicly traded company. 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 1, 2023, 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 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:
Jake Sargent						Jessica Moore
[email protected]						[email protected]

Exhibit 99.2

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			FIRST QUARTER
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	10,782					9,857						9.4			%			9.4						—
Europe			5,590						5,341						4.7						9.4						(4.7)
Western Hemisphere excluding U.S.			1,076						998						7.8						15.5						(7.7)
Asia-Pacific, Africa			3,446						3,644						(5.4)						3.1						(8.5)
International			10,112						9,983						1.3						7.7						(6.4)
Worldwide			$	20,894					19,840						5.3			%			8.5						(3.2)
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	11,657					10,510						10.9			%			10.9						—
Europe			5,131						5,355						(4.2)						(5.2)						1.0
Western Hemisphere excluding U.S.			1,136						1,027						10.7						16.8						(6.2)
Asia-Pacific, Africa			3,595						3,323						8.2						14.3						(6.1)
International			9,862						9,705						1.6						3.8						(2.2)
Worldwide			$	21,519					20,215						6.5			%			7.5						(1.0)
(Unaudited; Dollars in Millions)			SIX MONTHS
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	22,439					20,367						10.2			%			10.2						—
Europe			10,721						10,696						0.2						2.1						(1.9)
Western Hemisphere excluding U.S.			2,212						2,025						9.3						16.2						(6.9)
Asia-Pacific, Africa			7,041						6,967						1.1						8.5						(7.4)
International			19,974						19,688						1.5						5.8						(4.3)
Worldwide			$	42,413					40,055						5.9			%			8.0						(2.1)
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)			FIRST QUARTER
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	9,857					9,500						3.8			%			3.8						—
Europe			5,341						4,727						13.0						21.2						(8.2)
Western Hemisphere excluding U.S.			998						968						3.0						4.2						(1.2)
Asia-Pacific, Africa			3,644						3,485						4.6						8.3						(3.7)
International			9,983						9,180						8.7						14.5						(5.8)
Worldwide			$	19,840					18,680						6.2			%			9.1						(2.9)
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	10,510					10,168						3.4			%			3.4						—
Europe			5,355						4,936						8.5						22.1						(13.6)
Western Hemisphere excluding U.S.			1,027						933						10.2						13.2						(3.0)
Asia-Pacific, Africa			3,323						3,421						(2.9)						6.2						(9.1)
International			9,705						9,290						4.5						15.4						(10.9)
Worldwide			$	20,215					19,458						3.9			%			9.1						(5.2)
(Unaudited; Dollars in Millions)			THIRD QUARTER
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	10,794					10,338						4.4			%			4.4						—
Europe			4,844						4,833						0.2						16.1						(15.9)
Western Hemisphere excluding U.S.			1,059						1,019						3.9						9.1						(5.2)
Asia-Pacific, Africa			3,299						3,336						(1.1)						11.4						(12.5)
International			9,202						9,188						0.1						13.6						(13.5)
Worldwide			$	19,996					19,526						2.4			%			8.7						(6.3)
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)			FOURTH QUARTER
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	10,820					10,634						1.7			%			1.7						—
Europe			5,124						6,099						(16.0)						(6.3)						(9.7)
Western Hemisphere excluding U.S.			1,024						1,007						1.7						8.3						(6.6)
Asia-Pacific, Africa			2,971						3,336						(10.9)						3.0						(13.9)
International			9,119						10,442						(12.7)						(1.9)						(10.8)
Worldwide			$	19,939					21,076						(5.4)			%			(0.1)						(5.3)
(Unaudited; Dollars in Millions)			TWELVE MONTHS
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by geographic area
U.S.			$	41,981					40,640						3.3			%			3.3						—
Europe			20,664						20,595						0.3						12.1						(11.8)
Western Hemisphere excluding U.S.			4,108						3,927						4.6						8.7						(4.1)
Asia-Pacific, Africa			13,237						13,578						(2.5)						7.2						(9.7)
International			38,009						38,100						(0.2)						10.0						(10.2)
Worldwide			$	79,990					78,740						1.6			%			6.5						(4.9)
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)						2023
						Q1												Q2												SIX MONTHS
												Percent												Percent												Percent
						Amount						to Sales						Amount						to Sales						Amount						to Sales
Sales to customers						$	20,894					100.0			%			$	21,519					100.0			%			$	42,413					100.0			%
Cost of products sold						6,687						32.0						6,462						30.0						13,149						31.0
Gross Profit						14,207						68.0						15,057						70.0						29,264						69.0
Selling, marketing and administrative expenses						4,906						23.5						5,396						25.1						10,302						24.3
Research and development expense						3,455						16.6						3,703						17.2						7,158						16.9
In-process research and development Impairments						49						0.2						—						—						49						0.1
Interest income						(198)						(0.9)						(326)						(1.5)						(524)						(1.2)
Interest expense, net of portion capitalized						212						1.0						217						1.0						429						1.0
Other (income) expense, net						6,940						33.2						(384)						(1.8)						6,556						15.5
Restructuring						130						0.6						145						0.7						275						0.6
Earnings/(loss) before provision for taxes on income						(1,287)						(6.2)						6,306						29.3						5,019						11.8
Provision for/(Benefit from) taxes on income						(796)						(3.9)						930						4.3						134						0.3
Net earnings/(loss) from Continuing Operations						$	(491)					(2.3)			%			$	5,376					25.0			%			$	4,885					11.5			%
Net earnings/(loss) from Discontinued Operations, net of tax						423												(232)												191
Net earnings/(loss)						$	(68)											$	5,144											$	5,076
Net Earnings (loss) per Share (Diluted) from Continuing Operations						$	(0.19)											$	2.05											$	1.86
Net Earnings (loss) per Share (Diluted) from Discontinued Operations						$	0.16											$	(0.09)											$	0.07
Average shares outstanding (Diluted)						2,605.5			*									2,625.7												2,630.7
*Basic Shares used as in an overall loss position
Effective tax rate from Continuing Operations						61.8			%									14.7			%									2.7			%
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income from continuing operations						$	7,536					36.1						$	8,005					37.2						$	15,541					36.6
Net earnings from continuing operations						$	6,340					30.3						$	6,730					31.3						$	13,070					30.8
Net earnings per share (Diluted) from continuing operations						$	2.41											$	2.56											$	4.97
Average shares outstanding (Diluted)						2,634.3												2,625.7												2,630.7
Effective tax rate from continuing operations						15.9			%									15.9			%									15.9			%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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)						2022
						Q1												Q2												SIX MONTHS
												Percent												Percent												Percent
						Amount						to Sales						Amount						to Sales						Amount						to Sales
Sales to customers						$	19,840					100.0			%			$	20,215					100.0			%			$	40,055					100.0			%
Cost of products sold						6,018						30.3						6,322						31.3						12,340						30.8
Gross Profit						13,822						69.7						13,893						68.7						27,715						69.2
Selling, marketing and administrative expenses						4,812						24.3						5,120						25.3						9,932						24.8
Research and development expense						3,355						16.9						3,585						17.7						6,940						17.3
In-process research and development Impairments						610						3.1						—						—						610						1.5
Interest income						(22)						(0.1)						(64)						(0.3)						(86)						(0.2)
Interest expense, net of portion capitalized						10						0.1						38						0.2						48						0.1
Other (income) expense, net						(210)						(1.1)						(1)						0.0						(211)						(0.5)
Restructuring						64						0.3						71						0.4						135						0.4
Earnings before provision for taxes on income						5,203						26.2						5,144						25.4						10,347						25.8
Provision for taxes on income						632						3.2						882						4.3						1,514						3.7
Net earnings from Continuing Operations						$	4,571					23.0			%			$	4,262					21.1			%			$	8,833					22.1			%
Net earnings from Discontinued Operations, net of tax						578												552												1,130
Net earnings						$	5,149											$	4,814											$	9,963
Net Earnings per Share (Diluted) from Continuing Operations						$	1.71											$	1.60											$	3.31
Net Earnings per Share (Diluted) from Discontinued Operations						$	0.22											$	0.20											$	0.42
Average shares outstanding (Diluted)						2,666.5												2,667.9												2,669.2
Effective tax rate from Continuing Operations						12.1			%									17.1			%									14.6			%
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income from continuing operations						$	7,349					37.0						$	7,082					35.0						$	14,431					36.0
Net earnings from continuing operations						$	6,388					32.2						$	6,038					29.9						$	12,426					31.0
Net earnings per share (Diluted) from continuing operations						$	2.40											$	2.26											$	4.66
Average shares outstanding (Diluted)						2,666.5												2,667.9												2,669.2
Effective tax rate from continuing operations						13.1			%									14.7			%									13.9			%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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)						2022
						Q3												Q4												FULL YEAR
												Percent												Percent												Percent
						Amount						to Sales						Amount						to Sales						Amount						to Sales
Sales to customers						$	19,996					100.0			%			$	19,939					100.0			%			$	79,990					100.0			%
Cost of products sold						6,172						30.9						6,084						30.5						24,596						30.7
Gross Profit						13,824						69.1						13,855						69.5						55,394						69.3
Selling, marketing and administrative expenses						4,975						24.9						5,339						26.8						20,246						25.3
Research and development expense						3,485						17.4						3,710						18.6						14,135						17.7
In-process research and development Impairments						—						—						173						0.8						783						1.0
Interest income						(150)						(0.8)						(254)						(1.3)						(490)						(0.6)
Interest expense, net of portion capitalized						51						0.3						177						0.9						276						0.3
Other (income) expense, net						226						1.1						795						4.0						810						1.0
Restructuring						65						0.3						75						0.4						275						0.4
Earnings before provision for taxes on income						5,172						25.9						3,840						19.3						19,359						24.2
Provision for taxes on income						862						4.3						613						3.1						2,989						3.7
Net earnings from Continuing Operations						$	4,310					21.6			%			$	3,227					16.2			%			$	16,370					20.5			%
Net earnings from Discontinued Operations, net of tax						148												293												1,571
Net earnings						$	4,458											$	3,520											$	17,941
Net Earnings per Share (Diluted) from Continuing Operations						$	1.62											$	1.22											$	6.14
Net Earnings per Share (Diluted) from Discontinued Operations						$	0.06											$	0.11											$	0.59
Average shares outstanding (Diluted)						2,661.3												2,650.1												2,663.9
Effective tax rate from Continuing Operations						16.7			%									16.0			%									15.4			%
Adjusted earnings from continuing operations before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income from continuing operations						$	7,060					35.3						$	6,482					32.5						$	27,973					35.0
Net earnings from continuing operations						$	5,938					29.7						$	5,432					27.2						$	23,796					29.7
Net earnings per share (Diluted) from continuing operations						$	2.23											$	2.05											$	8.93
Average shares outstanding (Diluted)						2,661.3												2,650.1												2,663.9
Effective tax rate from continuing operations						15.9			%									16.2			%									14.9			%
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings from continuing operations before provision for taxes on income," "adjusted net earnings from continuing operations," "adjusted net earnings per share (diluted) from continuing operations," and "adjusted effective tax rate from continuing operations" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations 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 gains from divestitures, 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 from continuing operations before provision for taxes on income, net earnings from continuing operations, net earnings per share (diluted) from continuing operations, and effective tax rate from continuing operations prepared in accordance with GAAP, adjusted earnings from continuing operations before provision for taxes on income, adjusted net earnings from continuing operations, adjusted net earnings per share (diluted) from continuing operations, and adjusted effective tax rate from continuing operations 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, significant gains from divestitures, 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
Reconciliation of Non-GAAP Financial Measures
						2023
			(Dollars in Millions Except Per Share Data)			Q1						Q2						SIX MONTHS
			Net Earnings/(loss) from Continuing Operations, after tax - as reported			$	(491)					5,376						4,885
			Pre-tax Adjustments
			Intangible Asset Amortization expense			1,122						1,130						2,252
			Litigation related			6,900						137						7,037
			IPR&D impairments			49						0						49
			Restructuring related			130						145						275
			Acquisition, integration and divestiture related			42						38						80
			(Gains)/losses on securities			72						(1)						71
			Medical Device Regulation			64						85						149
			COVID-19 Vaccine related costs			444						165						609
			Tax Adjustments
			Tax impact on special item adjustments			(1,980)						(307)						(2,287)
			Consumer Health separation tax related costs			11						(17)						(6)
			Tax legislation and other tax related			(23)						(21)						(44)
			Adjusted Net Earnings from continuing operations, after tax			$	6,340					6,730						13,070
			Average shares outstanding (Diluted)			2,634.3						2,625.7						2,630.7
			Adjusted net earnings per share from continuing operations (Diluted)			$	2.41					2.56						4.97

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
						2022
			(Dollars in Millions Except Per Share Data)			Q1						Q2						Q3						Q4						FULL YEAR
			Net Earnings from Continuing Operations, after tax - as reported			$	4,571					4,262						4,310						3,227						16,370
			Pre-tax Adjustments
			Intangible Asset Amortization expense			1,014						995						958						977						3,944
			Litigation related			0						385						219						262						866
			IPR&D impairments			610						0						0						173						783
			Restructuring related			58						103						92						119						372
			Acquisition, integration and divestiture related			0						0						0						196						196
			(Gains)/losses on securities			411						109						164						6						690
			Medical Device Regulation			60						70						78						88						296
			COVID-19 Vaccine related costs			0						276						377						821						1,474
			Other			(7)						0						0						0						(7)
			Tax Adjustments
			Tax impact on special item adjustments			(346)						(242)						(312)						(394)						(1,294)
			Consumer Health separation tax related costs			96						2						(36)						4						66
			Tax legislation and other tax related			(79)						78						88						(47)						40
			Adjusted Net Earnings from continuing operations, after tax			$	6,388					6,038						5,938						5,432						23,796
			Average shares outstanding (Diluted)			2,666.5						2,667.9						2,661.3						2,650.1						2,663.9
			Adjusted net earnings per share from continuing operations (Diluted)			$	2.40					2.26						2.23						2.05						8.93

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth (A)
2023 ACTUAL vs. 2022 ACTUAL
						Q1						Q2						SIX MONTHS
WW As Reported						5.3		%				6.5		%				5.9		%
U.S.						9.4		%				10.9		%				10.2		%
International						1.3		%				1.6		%				1.5		%
WW Currency						(3.2)						(1.0)						(2.1)
U.S.						—						—						—
International						(6.4)						(2.2)						(4.3)
WW Operational						8.5		%				7.5		%				8.0		%
U.S.						9.4		%				10.9		%				10.2		%
International						7.7		%				3.8		%				5.8		%
Abiomed						(1.6)						(1.6)						(1.6)
U.S.						(2.7)						(2.6)						(2.6)
International						(0.6)						(0.6)						(0.6)
All Other Acquisitions and Divestitures						0.0						0.1						0.0
U.S.						0.0						0.0						0.0
International						0.1						0.2						0.2
WW Adjusted Operational						6.9		%				6.0		%				6.4		%
U.S.						6.7		%				8.3		%				7.6		%
International						7.2		%				3.4		%				5.4		%
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.

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth (A)
2022 ACTUAL vs. 2021 ACTUAL
			Q1						Q2						SIX MONTHS						Q3						NINE MONTHS						Q4						TWELVE MONTHS
WW As Reported			6.2		%				3.9		%				5.0		%				2.4		%				4.1		%				(5.4)		%				1.6		%
U.S.			3.8		%				3.4		%				3.6		%				4.4		%				3.8		%				1.7		%				3.3		%
International			8.7		%				4.5		%				6.6		%				0.1		%				4.5		%				(12.7)		%				(0.2)		%
WW Currency			(2.9)						(5.2)						(4.1)						(6.3)						(4.8)						(5.3)						(4.9)
U.S.			—						—						—						—						—						—						—
International			(5.8)						(10.9)						(8.4)						(13.5)						(10.0)						(10.8)						(10.2)
WW Operational			9.1		%				9.1		%				9.1		%				8.7		%				8.9		%				(0.1)		%				6.5		%
U.S.			3.8		%				3.4		%				3.6		%				4.4		%				3.8		%				1.7		%				3.3		%
International			14.5		%				15.4		%				15.0		%				13.6		%				14.5		%				(1.9)		%				10.0		%
Abiomed																																	(0.1)
U.S.																																	(0.3)
International																																	0.0
All Other Acquisitions and Divestitures			0.0						0.1						0.1						0.1						0.1						0.1						0.0
U.S.			0.0						0.1						0.0						0.1						0.0						0.1						0.0
International			0.0						0.1						0.1						0.1						0.1						0.1						0.1
WW Adjusted Operational			9.1		%				9.2		%				9.2		%				8.8		%				9.0		%				(0.1)		%				6.5		%
U.S.			3.8		%				3.5		%				3.6		%				4.5		%				3.8		%				1.5		%				3.3		%
International			14.5		%				15.5		%				15.1		%				13.7		%				14.6		%				(1.8)		%				10.1		%
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.

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q1 2023 - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	4,402					1,409						(7,098)						(1,287)
% to Sales						32.8		%				18.8		%				(34.0)		%				(6.2)		%
Intangible asset amortization expense
						739						383						—						1,122
In-process research and development Impairments
						—						49						—						49
Litigation Related
						—						—						6,900						6,900
Loss/(gain) on securities
						38						34						—						72
Restructuring related
						130						—						—						130
Acquisition, integration and divestiture related
						—						42						—						42
Medical Device Regulation
						—						64						—						64
COVID-19 Vaccine related costs
						444						—						—						444
Adjusted Income Before Tax by Segment from Continuing Operations						$	5,753					1,981						(198)						7,536
% to Sales						42.9		%				26.5		%				(0.9)		%				36.1		%

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 2023 QTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	4,812					1,671						(177)						6,306
% to Sales						35.0		%				21.5		%				(0.8)		%				29.3		%
Intangible asset amortization expense						748						382						—						1,130
In-process research and development Impairments						—						—						—						—
Litigation Related						(93)						60						170						137
Loss/(gain) on securities						38						(39)						—						(1)
Restructuring related						145						—						—						145
Acquisition, integration and divestiture related						—						38						—						38
Medical Device Regulation						—						85						—						85
COVID-19 Vaccine related costs						165						—						—						165
Adjusted Income Before Tax by Segment from Continuing Operations						$	5,815					2,197						(7)						8,005
% to Sales						42.3		%				28.2		%				0.0		%				37.2		%
Q2 2023 YTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	9,214					3,080						(7,275)						5,019
% to Sales						33.9		%				20.2		%				(17.2)		%				11.8		%
Intangible asset amortization expense						1,487						765						—						2,252
In-process research and development Impairments						—						49						—						49
Litigation Related						(93)						60						7,070						7,037
Loss/(gain) on securities						76						(5)						—						71
Restructuring related						275						—						—						275
Acquisition, integration and divestiture related						—						80						—						80
Medical Device Regulation						—						149						—						149
COVID-19 Vaccine related costs						609						—						—						609
Adjusted Income Before Tax by Segment from Continuing Operations						$	11,568					4,178						(205)						15,541
% to Sales						42.6		%				27.4		%				(0.5)		%				36.6		%

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q1 2022 - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	3,873					1,441						(111)						5,203
% to Sales						30.1		%				20.7		%				(0.6)		%				26.2		%
Intangible asset amortization expense						760						254						—						1,014
In-process research and development Impairments						610						—						—						610
Loss/(gain) on securities						394						17						—						411
Restructuring related						(14)						72						—						58
Medical Device Regulation						—						60						—						60
Other						—						—						(7)						(7)
Adjusted Income Before Tax by Segment from Continuing Operations						$	5,623					1,844						(118)						7,349
% to Sales						43.7		%				26.5		%				(0.6)		%				37.0		%

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 2022 QTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	4,365					1,110						(331)						5,144
% to Sales						32.8		%				16.1		%				(1.6)		%				25.4		%
Intangible asset amortization expense						736						259						—						995
Litigation Related						21						264						100						385
Loss/(gain) on securities						102						7						—						109
Restructuring related						23						80						—						103
Medical Device Regulation						—						70						—						70
COVID-19 Vaccine related costs						276						—						—						276
Adjusted Income Before Tax by Segment from Continuing Operations						$	5,523					1,790						(231)						7,082
% to Sales						41.5		%				25.9		%				(1.1)		%				35.0		%
Q2 2022 YTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	8,238					2,551						(442)						10,347
% to Sales						31.5		%				18.4		%				(1.1)		%				25.8		%
Intangible asset amortization expense						1,496						513						—						2,009
In-process research and development Impairments						610						—						—						610
Litigation Related						21						264						100						385
Loss/(gain) on securities						496						24						—						520
Restructuring related						9						152						—						161
Medical Device Regulation						—						130						—						130
COVID-19 Vaccine related costs						276						—						—						276
Other						—						—						(7)						(7)
Adjusted Income Before Tax by Segment from Continuing Operations						$	11,146					3,634						(349)						14,431
% to Sales						42.6		%				26.2		%				(0.9)		%				36.0		%

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q3 2022 QTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	4,186					1,090						(104)						5,172
% to Sales						31.7		%				16.1		%				(0.5)		%				25.9		%
Intangible asset amortization expense						698						260						—						958
Litigation Related						7						212						—						219
Loss/(gain) on securities						177						(13)						—						164
Restructuring related						23						69						—						92
Medical Device Regulation						—						78						—						78
COVID-19 Vaccine related costs						377						—						—						377
Adjusted Income Before Tax by Segment from Continuing Operations						$	5,468					1,696						(104)						7,060
% to Sales						41.4		%				25.0		%				(0.5)		%				35.3		%
Q3 2022 YTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	12,424					3,641						(546)						15,519
% to Sales						31.5		%				17.6		%				(0.9)		%				25.8		%
Intangible asset amortization expense						2,194						773						—						2,967
In-process research and development Impairments						610						—						—						610
Litigation Related						28						476						100						604
Loss/(gain) on securities						673						11						—						684
Restructuring related						32						221						—						253
Medical Device Regulation						—						208						—						208
COVID-19 Vaccine related costs						653						—						—						653
Other						—						—						(7)						(7)
Adjusted Income Before Tax by Segment from Continuing Operations						$	16,614					5,330						(453)						21,491
% to Sales						42.2		%				25.8		%				(0.8)		%				35.8		%

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Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 2022 QTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	3,223					806						(189)						3,840
% to Sales						24.5		%				11.9		%				(0.9)		%				19.3		%
Intangible asset amortization expense						717						260						—						977
In-process research and development Impairments						173						—						—						173
Litigation Related						76						136						50						262
Loss/(gain) on securities						23						(17)						—						6
Restructuring related						31						88						—						119
Acquisition, integration and divestiture related						(104)						300						—						196
Medical Device Regulation						—						88						—						88
COVID-19 Vaccine related costs						821						—						—						821
Adjusted Income Before Tax by Segment from Continuing Operations						$	4,960					1,661						(139)						6,482
% to Sales						37.7		%				24.5		%				(0.7)		%				32.5		%
Q4 2022 YTD - Income Before Tax by Segment from Continuing Operations
(Dollars in Millions)						Pharmaceutical						MedTech						Unallocated						Worldwide Total
Reported Income Before Tax by Segment from Continuing Operations						$	15,647					4,447						(735)						19,359
% to Sales						29.8		%				16.2		%				(0.9)		%				24.2		%
Intangible asset amortization expense						2,911						1,033						—						3,944
In-process research and development Impairments						783						—						—						783
Litigation Related						104						612						150						866
Loss/(gain) on securities						696						(6)						—						690
Restructuring related						63						309						—						372
Acquisition, integration and divestiture related						(104)						300						—						196
Medical Device Regulation						—						296						—						296
COVID-19 Vaccine related costs						1,474						—						—						1,474
Other						—						—						(7)						(7)
Adjusted Income Before Tax by Segment from Continuing Operations						$	21,574					6,991						(592)						27,973
% to Sales						41.0		%				25.5		%				(0.7)		%				35.0		%

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Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
First Quarter
			First Quarter April 2, 2023 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			First Quarter April 2, 2023 Non-GAAP
Cost of products sold			$	6,687		(1,118)																		(23)			(206)									5,340
Selling, marketing and admin expenses			4,906																					(7)												4,899
Research and development expense			3,455															(16)						(34)			(16)									3,389
Other (Income) / Expense			6,940			(4)			(6,900)									(26)			(72)						(222)									(284)
In-process research and development Impairments			49									(49)																								—
Interest (Income) / Expense			14																																	14
Restructuring			130												(130)																					—
Provision for/(Benefit from) taxes on income			(796)			177			1,622			11			32			5			16			12			105			(11)			23			1,196
Net Earnings/(Loss) from Continuing Operations			$	(491)		945			5,278			38			98			37			56			52			339			11			(23)			6,340
Second Quarter
			Second Quarter July 2, 2023 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Second Quarter July 2, 2023 Non-GAAP
Cost of products sold			$	6,462		(1,130)																		(34)			38						—			5,336
Selling, marketing and admin expenses			5,396																					(8)												5,388
Research and development expense			3,703																					(44)			(46)									3,613
Other (Income) / Expense			(384)						(137)									(38)			1						(156)									(714)
In-process research and development Impairments			—																																	—
Interest (Income)/Expense			(109)																																	(109)
Restructuring			145												(145)																					—
Provision for taxes on income			930			177			29						37			12			(1)			15			38			17			21			1,275
Net Earnings from Continuing Operations			$	5,376		953			108			—			108			26			—			71			126			(17)			(21)			6,730
Six Months
			Six Months July 2, 2023 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Six Months  July 2, 2023 Non-GAAP
Cost of products sold			$	13,149		(2,248)																		(57)			(168)									10,676
Selling, marketing and admin expenses			10,302																					(15)												10,287
Research and development expense			7,158															(16)						(78)			(62)									7,002
Other (Income) / Expense			6,556			(4)			(7,037)									(64)			(71)						(378)									(998)
In-process research and development Impairments			49									(49)																								—
Interest (Income)/Expense			(95)																																	(95)
Restructuring			275												(275)																					—
Provision for taxes on income			134			354			1,651			11			69			17			15			27			143			6			44			2,471
Net Earnings from Continuing Operations			$	4,885		1,898			5,386			38			206			63			56			123			465			(6)			(44)			13,070

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Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
First Quarter
			First Quarter April 3, 2022 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			First Quarter April 3, 2022 Non-GAAP
Cost of products sold			$	6,018		(1,014)									(14)						(22)															4,968
Selling, marketing and admin expenses			4,812																		(6)															4,806
Research and development expense			3,355																		(32)															3,323
Other (Income) / Expense			(210)												20			(411)															7			(594)
In-process research and development Impairments			610									(610)																								—
Restructuring			64												(64)																					—
Provision for taxes on income			632			148			(53)			138			8			96			11						(96)			79			(2)			961
Net Earnings from Continuing Operations			$	4,571		866			53			472			50			315			49			—			96			(79)			(5)			6,388
Second Quarter
			Second Quarter July 3, 2022 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Second Quarter July 3, 2022 Non-GAAP
Cost of products sold			$	6,322		(995)									(14)						(25)			(194)												5,094
Selling, marketing and admin expenses			5,120																		(6)															5,114
Research and development expense			3,585																		(39)			(110)												3,436
Other (Income) / Expense			(1)						(385)						(18)			(109)						28												(485)
In-process research and development Impairments			—																																	—
Restructuring			71												(71)																					—
Provision for taxes on income			882			148			(29)						20			25			13			65			(2)			(78)						1,044
Net Earnings from Continuing Operations			$	4,262		847			414			—			83			84			57			211			2			78			—			6,038
Third Quarter
			Third Quarter Oct 2, 2022 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Third Quarter Oct 2, 2022 Non-GAAP
Cost of products sold			$	6,172		(958)									(9)						(29)			(102)												5,074
Selling, marketing and admin expenses			4,975																		(7)															4,968
Research and development expense			3,485																		(42)			(80)												3,363
Other (Income) / Expense			226						(219)						(18)			(164)						(195)												(370)
In-process research and development Impairments			—																																	—
Restructuring			65												(65)																					—
Provision for taxes on income			862			146			(7)						19			43			15			96			36			(88)						1,122
Net Earnings from Continuing Operations			$	4,310		812			226			—			73			121			63			281			(36)			88			—			5,938

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Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Fourth Quarter
			Fourth Quarter Jan 1, 2023 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Fourth Quarter Jan 1, 2023 Non-GAAP
Cost of products sold			$	6,084		(977)									(25)									(33)			(160)												4,889
Selling, marketing and admin expenses			5,339																					(9)															5,330
Research and development expense			3,710																					(46)			(114)												3,550
Other (Income) / Expense			795						(262)						(19)			(196)			(6)						(547)												(235)
In-process research and development Impairments			173									(173)																											—
Restructuring			75												(75)																								—
Provision for taxes on income			613			148			(36)			40			19			5			2			17			199			(4)			47						1,050
Net Earnings from Continuing Operations			$	3,227		829			298			133			100			191			4			71			622			4			(47)			—			5,432
Twelve Months
			Twelve Months Jan 1, 2023 GAAP			Intangible asset amortization			Litigation related			In-process research and development Impairments			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Twelve Months Jan 1, 2023 Non-GAAP
Cost of products sold			$	24,596		(3,944)									(62)									(109)			(456)												20,025
Selling, marketing and admin expenses			20,246																					(28)															20,218
Research and development expense			14,135																					(159)			(304)												13,672
Other (Income) / Expense			810						(866)						(35)			(196)			(690)						(714)									7			(1,684)
In-process research and development Impairments			783									(783)																											—
Restructuring			275												(275)																								—
Provision for taxes on income			2,989			590			(125)			178			66			5			166			56			360			(66)			(40)			(2)			4,177
Net Earnings from Continuing Operations			$	16,370		3,354			991			605			306			191			524			240			1,114			66			40			(5)			23,796