Johnson & Johnson Reports Q2 2023 Results

Rhea-AI Summary

Johnson & Johnson reports 6.3% sales growth to $25.5 billion in Q2 2023. Adjusted EPS increased by 8.1% to $2.80. Company increases full-year guidance for adjusted operational sales and EPS. Plans to split off Kenvue shares through an exchange offer.

Positive

• Sales growth of 6.3% to $25.5 billion in Q2 2023
• Adjusted EPS increased by 8.1% to $2.80
• Increase in full-year guidance for adjusted operational sales and EPS

Negative

• None.

• 2023 Second-Quarter reported sales growth of 6.3% to $25.5 Billion with operational growth of 7.5%* and adjusted operational growth of 6.2%*. Operational growth excluding COVID-19 Vaccine of 8.9%*
• Earnings per share (EPS) of $1.96 increasing 8.9% and adjusted EPS of $2.80 increasing by 8.1%*
• Company is increasing 2023 full-year guidance midpoints for adjusted operational sales excluding COVID-19 Vaccine and adjusted operational EPS
• Johnson & Johnson intends to "split off" Kenvue shares through an exchange offer as the form of its next step in the separation, subject to market conditions

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2023. “Our robust performance in the second quarter and first half of 2023 is a testament to the hard work and commitment of our colleagues around the world,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation.”

OVERALL FINANCIAL RESULTS

	Q2
($ in Millions, except EPS)	2023	2022	% Change
Reported Sales	$25,530	$24,020	6.3%
Net Earnings/(Loss)	$5,144	$4,814	6.9%
EPS (diluted)	$1.96	$1.80	8.9%
	Q2
Non-GAAP* ($ in Millions, except EPS)	2023	2022	% Change
Operational Sales1,2			7.5%
Adjusted Operational Sales1,3			6.2%
Adjusted Net Earnings1,4	$7,358	$6,912	6.5%
Adjusted EPS (diluted)1,4	$2.80	$2.59	8.1%

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

Q2			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$13,444	$12,197	10.2%	10.2	-	8.0
International	12,086	11,823	2.2	4.7	(2.5)	4.4
Worldwide	$25,530	$24,020	6.3%	7.5	(1.2)	6.2

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
		Note: Values may have been rounded

SEGMENT SALES RESULTS

Q2			% Change
($ in Millions)	2023	2022	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer Health	$4,011	$3,805	5.4%	7.7	(2.3)	7.7
Pharmaceutical	13,731	13,317	3.1	3.8	(0.7)	3.9
MedTech	7,788	6,898	12.9	14.7	(1.8)	9.9
Worldwide	$25,530	$24,020	6.3%	7.5	(1.2)	6.2

1		Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
2		Excludes the impact of translational currency
3		Excludes the net impact of acquisitions and divestitures and translational currency
		Note: Values may have been rounded

SECOND QUARTER 2023 SEGMENT COMMENTARY:
Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 3.9%*. Excluding the COVID-19 Vaccine, adjusted operational sales grew 6.2%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), and CARVYKTI (ciltacabtagene autoleucel) in Oncology, STELARA (ustekinumab) and TREMFYA (guselkumab) in Immunology, UPTRAVI (selexipag) and OPSUMIT (macitentan) in Pulmonary Hypertension, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by ZYTIGA (abiraterone acetate) and IMBRUVICA (ibrutinib) in Oncology, COVID-19 Vaccine (Ad26.COV2.S) in Infectious Diseases, and REMICADE (infliximab) in Immunology.

MedTech
MedTech worldwide adjusted operational sales grew 9.9%*, driven primarily by electrophysiology products in Interventional Solutions, trauma in Orthopaedics, wound closure products in General Surgery, biosurgery in Advanced Surgery, and contact lenses in Vision. MedTech worldwide operational sales grew 14.7%*, with the acquisition of Abiomed contributing 4.8%.

Consumer Health
Consumer Health worldwide adjusted operational sales increased 7.7%* largely driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, upper respiratory products, international smoking cessation products, and IMODIUM in digestive health products. Additional contributors to growth were NEUTROGENA in Skin Health/Beauty products and Women’s Health products outside the United States.

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 and information available in the Investors section of the company’s website at news releases, as well as www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

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	Janssen Enters Worldwide Collaboration and License Agreement with Cellular Biomedicine Group to Develop Next Generation CAR-T Therapies	Press Release

1

Subsequent to the quarter

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)	July 2023	April 2023
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	6.0% – 7.0% / 6.5%	4.5% – 5.5% / 5.0%
Operational Sales2,5/ Mid-point Change vs. Prior Year / Mid-point	$99.3B – $100.3B / $99.8B 7.0% – 8.0% / 7.5%	$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%
Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point	$98.8B – $99.8B / $99.3B 6.5% – 7.5% / 7.0%	$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point Change vs. Prior Year / Mid-point	$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%	$10.50 – $10.60 / $10.55 3.5% – 4.5% / 4.0%
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point	$10.70 – $10.80 / $10.75 5.5% – 6.5% / 6.0%	$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%

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 2023 = $1.09 and April 2023 = $1.10 (Illustrative purposes only)
4		Non-GAAP financial measure; excludes intangible amortization expense and special items
5		Excludes COVID-19 Vaccine
		Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest, 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 earnings release and the Investors section of the company's website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company's website at quarterly results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, 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 satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; 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.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	SECOND QUARTER														SIX MONTHS
						Percent Change														Percent Change
	2023			2022		Total			Operations			Currency			2023			2022		Total			Operations		Currency
Sales to customers by
segment of business
Consumer Health
U.S.	$	1,787		1,687		6.0		%	6.0			-			$	3,522		3,244		8.6		%	8.6		-
International		2,224		2,118		5.0			9.0			(4.0	)			4,341		4,147		4.7			10.1		(5.4	)
		4,011		3,805		5.4			7.7			(2.3	)			7,863		7,391		6.4			9.5		(3.1	)
Pharmaceutical (1)
U.S.		7,818		7,159		9.2			9.2			-				14,841		13,791		7.6			7.6		-
International		5,913		6,158		(4.0	)		(2.5	)		(1.5	)			12,303		12,395		(0.7	)		3.1		(3.8	)
		13,731		13,317		3.1			3.8			(0.7	)			27,144		26,186		3.7			5.5		(1.8	)
Pharmaceutical excluding COVID-19 Vaccine (1)
U.S.		7,818		7,114		9.9			9.9			-				14,841		13,671		8.6			8.6		-
International		5,628		5,659		(0.5	)		1.5			(2.0	)			11,271		11,514		(2.1	)		1.9		(4.0	)
		13,446		12,773		5.3			6.2			(0.9	)			26,112		25,185		3.7			5.5		(1.8	)
MedTech (1)
U.S.		3,839		3,351		14.6			14.6			-				7,598		6,576		15.5			15.5		-
International		3,949		3,547		11.3			14.7			(3.4	)			7,671		7,293		5.2			10.3		(5.1	)
		7,788		6,898		12.9			14.7			(1.8	)			15,269		13,869		10.1			12.8		(2.7	)
U.S.		13,444		12,197		10.2			10.2			-				25,961		23,611		10.0			10.0		-
International		12,086		11,823		2.2			4.7			(2.5	)			24,315		23,835		2.0			6.5		(4.5	)
Worldwide		25,530		24,020		6.3			7.5			(1.2	)			50,276		47,446		6.0			8.2		(2.2	)
U.S.		13,444		12,152		10.6			10.6			-				25,961		23,491		10.5			10.5		-
International		11,801		11,324		4.2			7.0			(2.8	)			23,283		22,954		1.4			6.1		(4.7	)
Worldwide excluding COVID-19 Vaccine (1)	$	25,245		23,476		7.5		%	8.9			(1.4	)		$	49,244		46,445		6.0		%	8.3		(2.3	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales reconciliation schedule

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	SECOND QUARTER														SIX MONTHS
						Percent Change														Percent Change
	2023			2022		Total			Operations			Currency			2023			2022		Total		Operations		Currency
Sales to customers by
geographic area
U.S.	$	13,444		12,197		10.2		%	10.2			-			$	25,961		23,611		10.0	%	10.0		-
Europe		5,894		6,085		(3.1	)		(3.9	)		0.8				12,226		12,109		1.0		3.0		(2.0	)
Western Hemisphere excluding U.S.		1,713		1,536		11.5			17.7			(6.2	)			3,300		3,018		9.3		16.1		(6.8	)
Asia-Pacific, Africa		4,479		4,202		6.6			12.5			(5.9	)			8,789		8,708		0.9		8.2		(7.3	)
International		12,086		11,823		2.2			4.7			(2.5	)			24,315		23,835		2.0		6.5		(4.5	)
Worldwide	$	25,530		24,020		6.3		%	7.5			(1.2	)		$	50,276		47,446		6.0	%	8.2		(2.2	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	SECOND QUARTER
	2023							2022							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	25,530			100.0			$	24,020			100.0			6.3
Cost of products sold		8,212			32.2				7,919			33.0			3.7
Gross Profit		17,318			67.8				16,101			67.0			7.6
Selling, marketing and administrative expenses		6,665			26.1				6,226			25.9			7.1
Research and development expense		3,829			15.0				3,703			15.4			3.4
Interest (income) expense, net		(23	)		(0.1	)			(26	)		(0.1	)
Other (income) expense, net*		(60	)		(0.2	)			273			1.1
Restructuring		145			0.5				85			0.4
Earnings before provision for taxes on income		6,762			26.5				5,840			24.3			15.8
Provision for taxes on income		1,618			6.4				1,026			4.3			57.7
Net earnings	$	5,144			20.1			$	4,814			20.0			6.9
Net earnings per share (Diluted)	$	1.96						$	1.80						8.9
Average shares outstanding (Diluted)		2,625.7							2,667.9
Effective tax rate		23.9		%					17.6		%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	8,824			34.6			$	8,171			34.0			8.0
Net earnings	$	7,358			28.8			$	6,912			28.8			6.5
Net earnings per share (Diluted)	$	2.80						$	2.59						8.1
Effective tax rate		16.6		%					15.4		%
* Fiscal second quarter Other (income) expense, net includes $37 million related to the Company's 10.4% non-controlling interest in Kenvue, Inc. from the time of the initial public offering on May 8, 2023 through the end of the fiscal second quarter.
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	SIX MONTHS
	2023							2022							Percent
					Percent							Percent			Increase
	Amount				to Sales			Amount				to Sales			(Decrease)
Sales to customers	$	50,276			100.0			$	47,446			100.0			6.0
Cost of products sold		16,607			33.0				15,517			32.7			7.0
Gross Profit		33,669			67.0				31,929			67.3			5.4
Selling, marketing and administrative expenses		12,803			25.5				12,164			25.6			5.3
Research and development expense		7,392			14.7				7,165			15.1			3.2
In-process research and development		49			0.1				610			1.3
Interest (income) expense, net		(43	)		(0.1	)			(38	)		(0.1	)
Other (income) expense, net*		7,168			14.3				171			0.4
Restructuring		275			0.5				155			0.3
Earnings before provision for taxes on income		6,025			12.0				11,702			24.7			(48.5	)
Provision for taxes on income		949			1.9				1,739			3.7			(45.4	)
Net earnings	$	5,076			10.1			$	9,963			21.0			(49.1	)
Net earnings per share (Diluted)	$	1.93						$	3.73						(48.3	)
Average shares outstanding (Diluted)		2,630.7							2,669.2
Effective tax rate		15.8		%					14.9		%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	17,292			34.4			$	16,389			34.5			5.5
Net earnings	$	14,426			28.7			$	14,041			29.6			2.7
Net earnings per share (Diluted)	$	5.48						$	5.26						4.2
Effective tax rate		16.6		%					14.3		%
* Fiscal six months Other (income) expense, net includes $37 million related to the Company's 10.4% non-controlling interest in Kenvue, Inc. from the time of the initial public offering on May 8, 2023 through the end of the fiscal second quarter.
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Second Quarter								Six Months Ended
	(Dollars in Millions Except Per Share Data)		2023				2022				2023				2022
	Net Earnings, after tax- as reported	$	5,144			$	4,814			$	5,076			$	9,963
	Pre-tax Adjustments
	Litigation related		137				385				7,037				385
	Intangible Asset Amortization expense		1,211				1,095				2,415				2,203
	COVID-19 Vaccine related costs 1		165				276				609				276
	Consumer Health separation costs		282				268				582				370
	Restructuring related 2		145				128				275				200
	Medical Device Regulation 3		85				70				149				130
	Acquisition, integration and divestiture related		38				-				80				-
	(Gains)/losses on securities		(1	)			109				71				520
	IPR&D		-				-				49				610
	Other		-				-				-				(7	)
	Tax Adjustments
	Tax impact on special item adjustments 4		(373	)			(313	)			(2,430	)			(706	)
	Consumer Health separation tax related costs		546				2				557				98
	Tax legislation and other tax related		(21	)			78				(44	)			(1	)
	Adjusted Net Earnings, after tax	$	7,358			$	6,912			$	14,426			$	14,041
	Average shares outstanding (Diluted)		2,625.7				2,667.9				2,630.7				2,669.2
	Adjusted net earnings per share (Diluted)	$	2.80			$	2.59			$	5.48			$	5.26
	Operational adjusted net earnings per share (Diluted)	$	2.84							$	5.59
	Notes:
1	COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.
2	In the first and second quarter of 2023, the company completed a prioritization of its research and development (R&D) investment within the Pharmaceutical segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expenses of $145 million in the quarter ($275 million Q2 YTD) include the termination of partnered and non-partnered program costs and asset impairments.
3	European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.
4	The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SECOND QUARTER 2023 ACTUAL vs. 2022 ACTUAL
Segments
		Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported		5.4	%		3.1	%		12.9	%		6.3	%
U.S.		6.0	%		9.2	%		14.6	%		10.2	%
International		5.0	%		(4.0	)%		11.3	%		2.2	%
WW Currency		(2.3	)		(0.7	)		(1.8	)		(1.2	)
U.S.		-			-			-			-
International		(4.0	)		(1.5	)		(3.4	)		(2.5	)
WW Operational		7.7	%		3.8	%		14.7	%		7.5	%
U.S.		6.0	%		9.2	%		14.6	%		10.2	%
International		9.0	%		(2.5	)%		14.7	%		4.7	%
Abiomed								(4.8	)		(1.4	)
U.S.								(8.1	)		(2.2	)
International								(1.7	)		(0.5	)
All Other Acquisitions and Divestitures		0.0			0.1			0.0			0.1
U.S.		0.0			0.0			0.0			0.0
International		0.0			0.3			0.0			0.2
WW Adjusted Operational		7.7	%		3.9	%		9.9	%		6.2	%
U.S.		6.0	%		9.2	%		6.5	%		8.0	%
International		9.0	%		(2.2	)%		13.0	%		4.4	%
Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SIX MONTHS 2023 ACTUAL vs. 2022 ACTUAL
Segments
		Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported		6.4	%		3.7	%		10.1	%		6.0	%
U.S.		8.6	%		7.6	%		15.5	%		10.0	%
International		4.7	%		(0.7	)%		5.2	%		2.0	%
WW Currency		(3.1	)		(1.8	)		(2.7	)		(2.2	)
U.S.		-			-			-			-
International		(5.4	)		(3.8	)		(5.1	)		(4.5	)
WW Operational		9.5	%		5.5	%		12.8	%		8.2	%
U.S.		8.6	%		7.6	%		15.5	%		10.0	%
International		10.1	%		3.1	%		10.3	%		6.5	%
Abiomed								(4.7	)		(1.4	)
U.S.								(8.2	)		(2.3	)
International								(1.6	)		(0.5	)
All Other Acquisitions and Divestitures		0.0			0.1			0.0			0.1
U.S.		0.0			0.0			0.0			0.0
International		0.0			0.3			0.0			0.2
WW Adjusted Operational		9.5	%		5.6	%		8.1	%		6.9	%
U.S.		8.6	%		7.6	%		7.3	%		7.7	%
International		10.1	%		3.4	%		8.7	%		6.2	%
Note: Percentages are based on actual, non-rounded figures and may not sum

	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US		$	712		663	7.5%	7.5%	-					$	1,457		1,333	9.3%	9.3%	-
Intl			947		818	15.7%	19.0%	-3.3%						1,844		1,609	14.6%	19.4%	-4.8%
WW			1,659		1,482	12.0%	13.9%	-1.9%						3,301		2,943	12.2%	14.8%	-2.6%
SKIN HEALTH / BEAUTY
US			650		629	3.4%	3.4%	-						1,267		1,173	8.0%	8.0%	-
Intl			498		497	0.3%	3.8%	-3.5%						991		965	2.7%	8.1%	-5.4%
WW			1,148		1,126	2.0%	3.5%	-1.5%						2,258		2,138	5.6%	8.0%	-2.4%
ORAL CARE
US			173		170	1.7%	1.7%	-						332		313	6.2%	6.2%	-
Intl			225		224	0.3%	3.4%	-3.1%						427		447	-4.7%	-0.3%	-4.4%
WW			398		394	0.9%	2.7%	-1.8%						759		760	-0.2%	2.4%	-2.6%
BABY CARE
US			99		88	12.5%	12.5%	-						195		173	12.7%	12.7%	-
Intl			261		287	-9.1%	-4.0%	-5.1%						524		557	-6.0%	0.1%	-6.1%
WW			360		375	-4.0%	-0.2%	-3.8%						719		730	-1.6%	3.1%	-4.7%
WOMEN'S HEALTH
US			4		3	-2.1%	-2.1%	-						7		7	-0.1%	-0.1%	-
Intl			235		228	3.5%	10.2%	-6.7%						449		452	-0.7%	7.2%	-7.9%
WW			238		230	3.4%	10.0%	-6.6%						455		458	-0.6%	7.1%	-7.7%
WOUND CARE / OTHER
US			149		133	12.3%	12.3%	-						264		245	7.9%	7.9%	-
Intl			58		65	-10.3%	-4.6%	-5.7%						107		117	-8.4%	-1.5%	-6.9%
WW			207		197	4.9%	6.8%	-1.9%						371		361	2.6%	4.9%	-2.3%
TOTAL CONSUMER HEALTH
US			1,787		1,687	6.0%	6.0%	-						3,522		3,244	8.6%	8.6%	-
Intl			2,224		2,118	5.0%	9.0%	-4.0%						4,341		4,147	4.7%	10.1%	-5.4%
WW		$	4,011		3,805	5.4%	7.7%	-2.3%					$	7,863		7,391	6.4%	9.5%	-3.1%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
PHARMACEUTICAL SEGMENT (2,3)		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
IMMUNOLOGY
US		$	2,865		2,853	0.4%	0.4%	-					$	5,313		5,354	-0.8%	-0.8%	-
Intl			1,631		1,559	4.7%	6.6%	-1.9%						3,295		3,176	3.8%	8.2%	-4.4%
WW			4,496		4,411	1.9%	2.6%	-0.7%						8,608		8,530	0.9%	2.6%	-1.7%
REMICADE
US			277		391	-29.3%	-29.3%	-						553		749	-26.2%	-26.2%	-
US Exports (4)			33		44	-24.9%	-24.9%	-						74		124	-40.3%	-40.3%	-
Intl			152		212	-28.2%	-25.2%	-3.0%						322		437	-26.2%	-22.5%	-3.7%
WW			462		647	-28.6%	-27.6%	-1.0%						949		1,310	-27.5%	-26.3%	-1.2%
SIMPONI / SIMPONI ARIA
US			285		301	-5.1%	-5.1%	-						556		588	-5.4%	-5.4%	-
Intl			244		266	-8.2%	-4.3%	-3.9%						510		549	-7.1%	-1.1%	-6.0%
WW			529		566	-6.6%	-4.7%	-1.9%						1,066		1,137	-6.2%	-3.3%	-2.9%
STELARA
US			1,817		1,731	4.9%	4.9%	-						3,268		3,110	5.1%	5.1%	-
Intl			981		868	13.0%	14.1%	-1.1%						1,974		1,777	11.1%	15.2%	-4.1%
WW			2,797		2,599	7.6%	8.0%	-0.4%						5,241		4,887	7.2%	8.7%	-1.5%
TREMFYA
US			450		382	17.8%	17.8%	-						856		773	10.7%	10.7%	-
Intl			255		214	19.4%	21.0%	-1.6%						489		413	18.4%	22.8%	-4.4%
WW			706		597	18.3%	18.9%	-0.6%						1,346		1,187	13.4%	15.0%	-1.6%
OTHER IMMUNOLOGY
US			4		3	17.8%	17.8%	-						7		9	-30.2%	-30.2%	-
Intl			0		0	-	-	-						0		0	-	-	-
WW			4		3	17.8%	17.8%	-						7		9	-30.2%	-30.2%	-
INFECTIOUS DISEASES
US			395		415	-4.9%	-4.9%	-						787		876	-10.2%	-10.2%	-
Intl			727		901	-19.4%	-22.0%	2.6%						1,920		1,737	10.5%	12.3%	-1.8%
WW			1,121		1,316	-14.8%	-16.6%	1.8%						2,707		2,613	3.6%	4.7%	-1.1%
COVID-19 VACCINE
US			-		45	*	*	-						-		120	*	*	-
Intl			285		499	-43.0%	-47.4%	4.4%						1,032		881	17.1%	18.4%	-1.3%
WW			285		544	-47.7%	-51.8%	4.1%						1,032		1,001	3.0%	4.2%	-1.2%
EDURANT / rilpivirine
US			8		9	-9.0%	-9.0%	-						17		18	-5.3%	-5.3%	-
Intl			258		215	19.9%	17.3%	2.6%						529		454	16.4%	18.0%	-1.6%
WW			266		225	18.6%	16.2%	2.4%						546		473	15.6%	17.1%	-1.5%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US			382		355	7.6%	7.6%	-						760		724	5.0%	5.0%	-
Intl			109		110	-0.2%	-1.0%	0.8%						208		242	-13.9%	-12.1%	-1.8%
WW			491		464	5.8%	5.6%	0.2%						968		965	0.3%	0.7%	-0.4%
OTHER INFECTIOUS DISEASES
US			5		6	-27.2%	-27.2%	-						10		14	-30.6%	-30.6%	-
Intl			74		77	-3.5%	3.6%	-7.1%						151		160	-5.6%	-1.2%	-4.4%
WW			79		83	-5.2%	1.3%	-6.5%						161		174	-7.6%	-3.6%	-4.0%
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
NEUROSCIENCE
US			1,029		896	14.9%	14.9%	-						2,007		1,739	15.4%	15.4%	-
Intl			764		837	-8.8%	-4.6%	-4.2%						1,590		1,735	-8.4%	-3.8%	-4.6%
WW			1,793		1,734	3.5%	5.5%	-2.0%						3,597		3,475	3.5%	5.8%	-2.3%
CONCERTA / Methylphenidate
US			64		38	68.2%	68.2%	-						134		73	84.0%	84.0%	-
Intl			143		123	16.3%	21.3%	-5.0%						279		245	13.9%	20.7%	-6.8%
WW			208		161	28.6%	32.4%	-3.8%						414		318	30.0%	35.3%	-5.3%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US			721		691	4.3%	4.3%	-						1,434		1,352	6.0%	6.0%	-
Intl			310		362	-14.4%	-12.6%	-1.8%						641		749	-14.5%	-10.7%	-3.8%
WW			1,031		1,054	-2.1%	-1.5%	-0.6%						2,075		2,102	-1.3%	0.1%	-1.4%
SPRAVATO
US			144		74	93.2%	93.2%	-						255		135	88.3%	88.3%	-
Intl			25		11	*	*	*						45		20	*	*	*
WW			169		85	98.2%	98.5%	-0.3%						300		155	93.1%	93.8%	-0.7%
OTHER NEUROSCIENCE
US			100		93	9.3%	9.3%	-						184		179	3.1%	3.1%	-
Intl			286		341	-16.4%	-9.9%	-6.5%						625		721	-13.4%	-8.7%	-4.7%
WW			386		433	-10.9%	-5.8%	-5.1%						809		900	-10.1%	-6.4%	-3.7%
ONCOLOGY
US			2,069		1,679	23.2%	23.2%	-						3,958		3,261	21.4%	21.4%	-
Intl			2,329		2,362	-1.4%	0.1%	-1.5%						4,552		4,731	-3.8%	0.0%	-3.8%
WW			4,398		4,042	8.8%	9.7%	-0.9%						8,510		7,992	6.5%	8.8%	-2.3%
CARVYKTI
US			114		24	*	*	-						184		24	*	*	-
Intl			3		-	*	*	*						5		-	*	*	*
WW			117		24	*	*	*						189		24	*	*	*
DARZALEX
US			1,322		1,021	29.5%	29.5%	-						2,513		1,974	27.3%	27.3%	-
Intl			1,110		965	15.0%	17.0%	-2.0%						2,182		1,868	16.8%	21.5%	-4.7%
WW			2,431		1,986	22.4%	23.4%	-1.0%						4,695		3,842	22.2%	24.5%	-2.3%
ERLEADA
US			241		233	3.6%	3.6%	-						490		439	11.8%	11.8%	-
Intl			326		218	49.7%	51.7%	-2.0%						619		412	50.3%	55.9%	-5.6%
WW			567		450	25.9%	26.9%	-1.0%						1,109		850	30.4%	33.2%	-2.8%
IMBRUVICA
US			262		349	-24.9%	-24.9%	-						532		719	-26.0%	-26.0%	-
Intl			579		620	-6.7%	-5.7%	-1.0%						1,136		1,288	-11.8%	-8.8%	-3.0%
WW			841		970	-13.2%	-12.6%	-0.6%						1,668		2,008	-16.9%	-15.0%	-1.9%
ZYTIGA / abiraterone acetate
US			9		19	-55.2%	-55.2%	-						25		38	-34.7%	-34.7%	-
Intl			218		486	-55.1%	-53.8%	-1.3%						447		1,006	-55.6%	-53.0%	-2.6%
WW			227		505	-55.1%	-53.8%	-1.3%						472		1,044	-54.8%	-52.3%	-2.5%
OTHER ONCOLOGY
US			122		33	*	*	-						214		67	*	*	-
Intl			92		72	27.8%	29.4%	-1.6%						162		156	3.6%	7.1%	-3.5%
WW			214		106	*	*	*						376		224	68.0%	70.4%	-2.4%
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
PULMONARY HYPERTENSION
US			684		560	22.0%	22.0%	-						1,284		1,132	13.4%	13.4%	-
Intl			289		284	2.0%	5.7%	-3.7%						561		563	-0.4%	5.5%	-5.9%
WW			972		843	15.3%	16.5%	-1.2%						1,844		1,695	8.8%	10.8%	-2.0%
OPSUMIT
US			328		265	23.7%	23.7%	-						601		538	11.6%	11.6%	-
Intl			179		173	3.4%	6.0%	-2.6%						346		343	0.9%	6.1%	-5.2%
WW			507		438	15.7%	16.7%	-1.0%						947		881	7.5%	9.5%	-2.0%
UPTRAVI
US			338		272	24.2%	24.2%	-						642		541	18.7%	18.7%	-
Intl			61		56	10.0%	14.1%	-4.1%						119		112	6.6%	11.7%	-5.1%
WW			399		328	21.8%	22.5%	-0.7%						761		653	16.6%	17.5%	-0.9%
OTHER PULMONARY HYPERTENSION
US			18		23	-23.8%	-23.8%	-						41		53	-23.0%	-23.0%	-
Intl			48		55	-10.9%	-3.7%	-7.2%						95		108	-11.7%	-2.8%	-8.9%
WW			66		78	-14.7%	-9.7%	-5.0%						136		161	-15.5%	-9.5%	-6.0%
CARDIOVASCULAR / METABOLISM / OTHER
US			776		757	2.6%	2.6%	-						1,491		1,429	4.3%	4.3%	-
Intl			174		215	-19.0%	-18.3%	-0.7%						386		453	-14.7%	-12.0%	-2.7%
WW			950		972	-2.2%	-2.0%	-0.2%						1,877		1,882	-0.3%	0.4%	-0.7%
XARELTO
US			637		609	4.7%	4.7%	-						1,215		1,117	8.8%	8.8%	-
Intl			-		-	-	-	-						-		-	-	-	-
WW			637		609	4.7%	4.7%	-						1,215		1,117	8.8%	8.8%	-
OTHER
US			138		148	-6.3%	-6.3%	-						275		312	-11.8%	-11.8%	-
Intl			174		215	-19.0%	-18.3%	-0.7%						386		453	-14.7%	-12.0%	-2.7%
WW			313		363	-13.8%	-13.4%	-0.4%						662		765	-13.5%	-11.9%	-1.6%
TOTAL PHARMACEUTICAL
US			7,818		7,159	9.2%	9.2%	-						14,841		13,791	7.6%	7.6%	-
Intl			5,913		6,158	-4.0%	-2.5%	-1.5%						12,303		12,395	-0.7%	3.1%	-3.8%
WW		$	13,731		13,317	3.1%	3.8%	-0.7%					$	27,144		26,186	3.7%	5.5%	-1.8%
See footnotes at end of schedule
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
MEDTECH SEGMENT (2,3)		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
INTERVENTIONAL SOLUTIONS
US		$	908		525	73.1%	73.1%	-					$	1,771		1,019	73.8%	73.8%	-
Intl			712		525	35.7%	40.7%	-5.0%						1,352		1,123	20.5%	27.0%	-6.5%
WW			1,620		1,049	54.4%	56.9%	-2.5%						3,123		2,141	45.8%	49.3%	-3.5%
ELECTROPHYSIOLOGY
US			609		499	22.0%	22.0%	-						1,180		969	21.7%	21.7%	-
Intl			587		469	25.1%	30.0%	-4.9%						1,109		1,001	10.8%	17.3%	-6.5%
WW			1,196		968	23.5%	25.9%	-2.4%						2,288		1,970	16.2%	19.5%	-3.3%
ABIOMED
US			272		-	*	*	-						536		-	*	*	-
Intl			59		-	*	*	*						119		-	*	*	*
WW			331		-	*	*	*						655		-	*	*	*
OTHER INTERVENTIONAL SOLUTIONS
US			27		26	4.5%	4.5%	-						55		50	10.8%	10.8%	-
Intl			67		56	20.0%	25.3%	-5.3%						125		121	2.8%	8.9%	-6.1%
WW			93		81	15.1%	18.8%	-3.7%						180		171	5.1%	9.5%	-4.4%
ORTHOPAEDICS
US			1,388		1,338	3.7%	3.7%	-						2,751		2,627	4.7%	4.7%	-
Intl			878		820	7.0%	9.0%	-2.0%						1,759		1,719	2.3%	6.4%	-4.1%
WW			2,265		2,157	5.0%	5.7%	-0.7%						4,510		4,345	3.8%	5.4%	-1.6%
HIPS
US			250		240	4.1%	4.1%	-						491		465	5.6%	5.6%	-
Intl			147		148	-0.8%	1.2%	-2.0%						296		312	-5.1%	-1.3%	-3.8%
WW			397		388	2.2%	3.0%	-0.8%						787		777	1.3%	2.8%	-1.5%
KNEES
US			221		216	2.4%	2.4%	-						447		417	7.2%	7.2%	-
Intl			142		133	6.3%	8.0%	-1.7%						284		271	4.8%	8.8%	-4.0%
WW			363		349	3.9%	4.5%	-0.6%						731		688	6.3%	7.9%	-1.6%
TRAUMA
US			483		464	4.3%	4.3%	-						974		939	3.7%	3.7%	-
Intl			255		232	9.9%	10.9%	-1.0%						522		505	3.2%	7.0%	-3.8%
WW			739		696	6.1%	6.5%	-0.4%						1,496		1,444	3.6%	4.9%	-1.3%
SPINE, SPORTS & OTHER
US			433		418	3.5%	3.5%	-						839		805	4.1%	4.1%	-
Intl			334		306	9.0%	11.6%	-2.6%						657		630	4.2%	8.7%	-4.5%
WW			766		724	5.8%	7.0%	-1.2%						1,495		1,436	4.2%	6.1%	-1.9%
	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER											SIX MONTHS
						% Change											% Change
		2023			2022	Reported	Operational (1)	Currency					2023			2022	Reported	Operational (1)	Currency
SURGERY
US			1,015		992	2.2%	2.2%	-						1,990		1,913	4.0%	4.0%	-
Intl			1,580		1,458	8.4%	12.6%	-4.2%						3,039		2,971	2.3%	7.7%	-5.4%
WW			2,594		2,450	5.9%	8.4%	-2.5%						5,028		4,884	3.0%	6.3%	-3.3%
ADVANCED
US			466		454	2.7%	2.7%	-						910		871	4.5%	4.5%	-
Intl			757		702	7.8%	12.1%	-4.3%						1,430		1,431	0.0%	5.3%	-5.3%
WW			1,222		1,156	5.8%	8.4%	-2.6%						2,340		2,302	1.7%	5.0%	-3.3%
GENERAL
US			548		538	1.9%	1.9%	-						1,079		1,042	3.6%	3.6%	-
Intl			823		756	8.9%	13.1%	-4.2%						1,608		1,540	4.5%	10.0%	-5.5%
WW			1,372		1,294	6.0%	8.4%	-2.4%						2,688		2,582	4.1%	7.4%	-3.3%
VISION
US			529		496	6.6%	6.6%	-						1,087		1,017	6.9%	6.9%	-
Intl			778		745	4.6%	7.1%	-2.5%						1,521		1,481	2.7%	7.5%	-4.8%
WW			1,308		1,241	5.4%	6.9%	-1.5%						2,608		2,498	4.4%	7.2%	-2.8%
CONTACT LENSES / OTHER
US			409		374	9.1%	9.1%	-						853		774	10.1%	10.1%	-
Intl			530		519	2.2%	4.8%	-2.6%						1,039		1,030	0.9%	6.3%	-5.4%
WW			939		894	5.1%	6.6%	-1.5%						1,892		1,804	4.9%	8.0%	-3.1%
SURGICAL
US			120		122	-1.1%	-1.1%	-						234		243	-3.6%	-3.6%	-
Intl			249		225	10.1%	12.3%	-2.2%						482		451	6.7%	10.2%	-3.5%
WW			369		347	6.2%	7.6%	-1.4%						716		694	3.1%	5.4%	-2.3%
TOTAL MEDTECH
US			3,839		3,351	14.6%	14.6%	-						7,598		6,576	15.5%	15.5%	-
Intl			3,949		3,547	11.3%	14.7%	-3.4%						7,671		7,293	5.2%	10.3%	-5.1%
WW		$	7,788		6,898	12.9%	14.7%	-1.8%					$	15,269		13,869	10.1%	12.8%	-2.7%
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
		SECOND QUARTER														SIX MONTHS
							Percent Change														Percent Change
		2023			2022		Total			Operations			Currency			2023			2022		Total			Operations		Currency
Pharmaceutical
U.S.		$	7,818		7,159		9.2		%	9.2			-			$	14,841		13,791		7.6		%	7.6		-
International			5,913		6,158		(4.0	)		(2.5	)		(1.5	)			12,303		12,395		(0.7	)		3.1		(3.8	)
Worldwide			13,731		13,317		3.1			3.8			(0.7	)			27,144		26,186		3.7			5.5		(1.8	)
COVID-19 Vaccine
U.S.			-		45		*			*			-				-		120		*			*		-
International			285		499		(43.0	)		(47.4	)		4.4				1,032		881		17.1			18.4		(1.3	)
Worldwide			285		544		(47.7	)		(51.8	)		4.1				1,032		1,001		3.0			4.2		(1.2	)
Pharmaceutical excluding COVID-19 Vaccine
U.S.			7,818		7,114		9.9			9.9			-				14,841		13,671		8.6			8.6		-
International			5,628		5,659		(0.5	)		1.5			(2.0	)			11,271		11,514		(2.1	)		1.9		(4.0	)
Worldwide			13,446		12,773		5.3			6.2			(0.9	)			26,112		25,185		3.7			5.5		(1.8	)
Worldwide
U.S.			13,444		12,197		10.2			10.2			-				25,961		23,611		10.0			10.0		-
International			12,086		11,823		2.2			4.7			(2.5	)			24,315		23,835		2.0			6.5		(4.5	)
Worldwide			25,530		24,020		6.3			7.5			(1.2	)			50,276		47,446		6.0			8.2		(2.2	)
COVID-19 Vaccine
U.S.			-		45		*			*			-				-		120		*			*		-
International			285		499		(43.0	)		(47.4	)		4.4				1,032		881		17.1			18.4		(1.3	)
Worldwide			285		544		(47.7	)		(51.8	)		4.1				1,032		1,001		3.0			4.2		(1.2	)
Worldwide
U.S.			13,444		12,152		10.6			10.6			-				25,961		23,491		10.5			10.5		-
International			11,801		11,324		4.2			7.0			(2.8	)			23,283		22,954		1.4			6.1		(4.7	)
Worldwide excluding COVID-19 Vaccine		$	25,245		23,476		7.5		%	8.9			(1.4	)		$	49,244		46,445		6.0		%	8.3		(2.3	)
Note: Columns and rows within tables may not add due to rounding
* Percentage greater than 100% or not meaningful

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 QTD - Income Before Tax by Segment*
Dollars in Millions
																			Consumer Health Separation Costs
			Consumer Health				Pharmaceutical				MedTech				Unallocated								Worldwide Total
			2023		2022		2023		2022		2023		2022		2023		2022		2023		2022		2023		2022
Reported Income Before Tax by Segment		$	860		784		4,862		4,420		1,699		1,141		(377)		(237)		(282)		(268)		6,762		5,840
% to Sales			21.4%		20.6%		35.4%		33.2%		21.8%		16.5%		-1.5%		-1.0%		-1.1%		-1.1%		26.5%		24.3%
Intangible asset amortization expense			81		100		748		736		382		259		-		-		-		-		1,211		1,095
In-process research and development			-		-		-		-		-		-		-		-		-		-		-		-
Litigation related			-		78		(93)		36		60		271		170		-		-		-		137		385
COVID-19 Vaccine related costs			-		-		165		276		-		-		-		-		-		-		165		276
Loss/(gain) on securities			-		-		38		102		(39)		7		-		-		-		-		(1)		109
Restructuring related			-		25		145		23		-		80		-		-		-		-		145		128
Acquisition, integration and divestiture related			-		-		-		-		38		-		-		-		-		-		38		-
Medical Device Regulation			-		-		-		-		85		70		-		-		-		-		85		70
Consumer Health separation costs			-		-		-		-		-		-		-		-		282		268		282		268
							-
Other			-		-				-		-		-		-		-		-		-		-		-
Adjusted Income Before Tax by Segment		$	941		987		5,865		5,593		2,225		1,828		(207)		(237)		-		-		8,824		8,171
% to Sales			23.5%		25.9%		42.7%		42.0%		28.6%		26.5%		-0.8%		-1.0%		0.0%		0.0%		34.6%		34.0%
*Estimated as of 7/20/2023

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 YTD - Income Before Tax by Segment*
Dollars in Millions
			Consumer Health				Pharmaceutical				MedTech				Unallocated				Consumer Health Separation Costs				Worldwide Total
			2023		2022		2023		2022		2023		2022		2023		2022		2023		2022		2023		2022
Reported Income Before Tax by Segment		$	1,636		1,470		9,306		8,344		3,144		2,618		(7,479)		(360)		(582)		(370)		6,025		11,702
% to Sales			20.8%		19.9%		34.3%		31.9%		20.6%		18.9%		-14.9%		-0.8%		-1.2%		-0.8%		12.0%		24.7%
Intangible asset amortization expense			163		194		1,487		1,496		765		513		-		-		-		-		2,415		2,203
In-process research and development			-		-		-		610		49		-		-		-		-		-		49		610
Litigation related			-		78		(93)		36		60		271		7,070		-		-		-		7,037		385
COVID-19 Vaccine related costs			-		-		609		276		-		-		-		-		-		-		609		276
Loss/(gain) on securities			-		-		76		496		(5)		24		-		-		-		-		71		520
Restructuring related			-		39		275		9		-		152		-		-		-		-		275		200
Acquisition, integration and divestiture related			-		-		-		-		80		-		-		-		-		-		80		-
Medical Device Regulation			-		-		-		-		149		130		-		-		-		-		149		130
Consumer Health separation costs			-		-		-		-		-		-		-		-		582		370		582		370
Other			-		-		-		-		-		-		-		(7)		-		-		-		(7)
Adjusted Income Before Tax by Segment		$	1,799		1,781		11,660		11,267		4,242		3,708		(409)		(367)		-		-		17,292		16,389
% to Sales			22.9%		24.1%		43.0%		43.0%		27.8%		26.7%		-0.8%		-0.8%		0.0%		0.0%		34.4%		34.5%
*Estimated as of 7/20/2023

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
	Second Quarter July 2, 2023 GAAP					Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation 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	$	8,212				(1,211	)								-									(34	)		38			(14	)		-			-			-			6,991
Selling, marketing and admin expenses		6,665																						(8	)					(44	)											6,613
Research and development expense		3,829																-						(44	)		(46	)		(2	)											3,737
Other (Income) / Expense		(60	)			-			(137	)					-			(38	)		1						(156	)		(221	)		-						-			(611	)
In-process research and development		-										-																														-
Interest (Income)/Expense		(23	)																											(1	)											(24	)
Restructuring		145													(145	)																										-
Provision for taxes on income		1,618				194			29			-			37			12			(1	)		15			38			49			(546	)		21			-			1,466
Net Earnings		5,144				1,017			108			-			108			26			-			71			126			233			546			(21	)		-			7,358
	Second Quarter July 3, 2022 GAAP					Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation 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	$	7,919				(1,083	)								(17	)								(25	)		(194	)		-			-			-			-			6,600
Selling, marketing and admin expenses		6,226																						(6	)																	6,220
Research and development expense		3,703																-						(39	)		(110	)														3,554
Other (Income) / Expense		273				(12	)		(385	)					(26	)		-			(109	)					28			(268	)		-						-			(499	)
In-process research and development		-										-																														-
Restructuring		85													(85	)																										-
Provision for taxes on income		1,026				170			(29	)		-			25			-			25			13			65			44			(2	)		(78	)		-			1,259
Net Earnings		4,814				925			414			-			103			-			84			57			211			224			2			78			-			6,912
Year to Date
	Six Months July 2, 2023 GAAP					Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Six Months July 2, 2023 Non-GAAP
Cost of products sold	$	16,607				(2,411	)								-									(57	)		(168	)		(26	)											13,945
Selling, marketing and admin expenses		12,803																						(15	)					(82	)											12,706
Research and development expense		7,392																(16	)					(78	)		(62	)		(4	)											7,232
Other (Income) / Expense		7,168				(4	)		(7,037	)					-			(64	)		(71	)					(378	)		(506	)		-						-			(892	)
In-process research and development		49										(49	)					-									-															-
Interest (Income)/Expense		(43	)																											36												(7	)
Restructuring		275													(275	)																										-
Provision for taxes on income		949				388			1,651			11			69			17			15			27			143			109			(557	)		44			-			2,866
Net Earnings		5,076				2,027			5,386			38			206			63			56			123			465			473			557			(44	)		-			14,426
	Six Months July 3, 2022 GAAP					Intangible asset amortization			Litigation related			In-process research and development			Restructuring related			Acquisition, integration and divestiture related			(Loss)/gain on securities			Medical Device Regulation			COVID-19 Vaccine Related Costs			Consumer Health separation costs			Consumer Health separation tax related costs			Tax legislation and other tax related			Other			Six Months July 3, 2022 Non-GAAP
Cost of products sold	$	15,517				(2,191	)								(33	)								(47	)		(194	)														13,052
Selling, marketing and admin expenses		12,164																						(12	)																	12,152
Research and development expense		7,165																-						(71	)		(110	)														6,984
Other (Income) / Expense		171				(12	)		(385	)					(12	)		-			(520	)					28			(370	)		-						7			(1,093	)
In-process research and development		610										(610	)																													-
Restructuring		155													(155	)																										-
Provision for taxes on income		1,739				338			(82	)		138			37			-			121			24			65			67			(98	)		1			(2	)		2,348
Net Earnings		9,963				1,865			467			472			163			-			399			106			211			303			98			(1	)		(5	)		14,041

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230720974196/en/

Press:

Tesia Williams

media-relations@its.jnj.com

Investors:

Jessica Moore

investor-relations@its.jnj.com

Source: Johnson & Johnson

FAQ

What was the sales growth in Q2 2023?

Sales grew by 6.3% to $25.5 billion.

How much did adjusted EPS increase by?

Adjusted EPS increased by 8.1% to $2.80.

What is the company's plan for Kenvue shares?

The company plans to split off Kenvue shares through an exchange offer.