Johnson & Johnson Reports Q4 and Full-Year 2022 Results

Rhea-AI Summary

Johnson & Johnson (NYSE: JNJ) reported a fourth-quarter sales decline of 4.4% to $23.7 billion, primarily due to unfavorable foreign exchange and reduced COVID-19 Vaccine sales. However, operational growth excluding vaccine sales reached 4.6%. The 2022 full-year reported sales increased 1.3% to $94.9 billion. Earnings per share (EPS) for Q4 decreased by 24.9% to $1.33, while adjusted EPS increased by 10.3% to $2.35. For 2023, the company expects adjusted operational sales growth of 4.0% and adjusted EPS of $10.50, representing a 3.5% increase.

Positive

• Operational growth of 4.6% excluding COVID-19 Vaccine sales.
• 2022 Full-Year sales increased by 1.3% to $94.9 billion.
• Adjusted EPS for Q4 rose by 10.3% to $2.35.

Negative

• Q4 sales declined by 4.4% to $23.7 billion.
• Q4 net earnings fell by 25.7% to $3.52 billion.
• Q4 EPS decreased by 24.9% to $1.33.

• 2022 Fourth-Quarter reported sales decline of 4.4% to $23.7 Billion primarily driven by unfavorable foreign exchange and reduced COVID-19 Vaccine sales vs. prior year. Operational growth excluding COVID-19 Vaccine of 4.6%*
• 2022 Fourth-Quarter earnings per share (EPS) of $1.33 decreasing 24.9% and adjusted EPS of $2.35 increasing by 10.3%*
  
  

• 2022 Full-Year reported sales growth of 1.3% to $94.9 Billion primarily driven by strong commercial execution partially offset by unfavorable foreign exchange. Operational growth of 6.1%*
• 2022 Full-Year earnings per share (EPS) of $6.73 decreasing 13.8% and adjusted EPS of $10.15 increasing by 3.6%*
  
  

• Company guides 2023 adjusted operational sales growth excluding COVID-19 Vaccine of 4.0%* and adjusted operational EPS of $10.50, reflecting growth of 3.5%*

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2022. “Our full year 2022 results reflect the continued strength and stability of our three business segments, despite macroeconomic challenges,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “I am inspired by our employees who make a difference in the health and lives of people around the world every day. As we look ahead to 2023, Johnson & Johnson is well-positioned to drive near-term growth, while also investing strategically to deliver long-term value.”

OVERALL FINANCIAL RESULTS

	Q4				Full Year
($ in Millions, except EPS)	2022	2021	% Change		2022	2021	% Change
Reported Sales	$23,706	$24,804	(4.4)%		$94,943	$93,775	1.3%
Net Earnings	$3,520	$4,736	(25.7)%		$17,941	$20,878	(14.1)%
EPS (diluted)	$1.33	$1.77	(24.9)%		$6.73	$7.81	(13.8)%
	Q4				Full Year
Non-GAAP* ($ in Millions, except EPS)	2022	2021	% Change		2022	2021	% Change
Operational Sales1,2			0.9%				6.1%
Adjusted Operational Sales1,3			0.8%				6.2%
Adjusted Net Earnings1,4	$6,218	$5,678	9.5%		$27,038	$26,195	3.2%
Adjusted EPS (diluted)1,4	$2.35	$2.13	10.3%		$10.15	$9.80	3.6%

¹ Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
² Excludes the impact of translational currency
³ Excludes the net impact of acquisitions and divestitures and translational currency
⁴ Excludes intangible amortization expense and special items
Note: values may have been rounded

REGIONAL SALES RESULTS

Q4			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$12,516	$12,163	2.9%	2.9	-	2.7
International	11,190	12,641	(11.5)	(1.1)	(10.4)	(1.0)
Worldwide	$23,706	$24,804	(4.4)%	0.9	(5.3)	0.8
Full Year			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
U.S.	$48,580	$47,156	3.0%	3.0	-	3.0
International	46,363	46,619	(0.6)%	9.1	(9.7)	9.3
Worldwide	$94,943	$93,775	1.3%	6.1	(4.8)	6.2

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

SEGMENT SALES RESULTS

Q4			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer Health4	$ 3,767	$ 3,728	1.0%	6.4	(5.4)	6.4
Pharmaceutical4	13,163	14,217	(7.4)	(2.5)	(4.9)	(2.3)
MedTech	6,776	6,859	(1.2)	4.9	(6.1)	4.4
Worldwide	$ 23,706	$ 24,804	(4.4)%	0.9	(5.3)	0.8
Full Year			% Change
($ in Millions)	2022	2021	Reported	Operational1,2	Currency	Adjusted Operational1,3
Consumer Health	$ 14,953	$ 15,035	(0.5)%	3.6	(4.1)	3.9
Pharmaceutical	52,563	51,680	1.7	6.7	(5.0)	6.8
MedTech	27,427	27,060	1.4	6.2	(4.8)	6.1
Worldwide	$ 94,943	$ 93,775	1.3%	6.1	(4.8)	6.2

¹ Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules
² Excludes the impact of translational currency
³ Excludes the net impact of acquisitions and divestitures and translational currency
⁴ Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
Note: Values may have been rounded

FULL YEAR 2022 SEGMENT COMMENTARY:
Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Consumer Health
Consumer Health worldwide adjusted operational sales increased 3.9%* predominately driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, as well as upper respiratory products and digestive health products in the international markets. Additionally, Skin Health/Beauty adjusted operational growth was primarily driven by NEUTROGENA outside the U.S. Growth was partially offset by Oral Care in the international markets.

Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 6.8%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and ZYTIGA (abiratone acetate), an oral, once daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

MedTech
MedTech worldwide adjusted operational sales grew 6.1%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, and wound closure products in General Surgery.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at 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.

Regulatory	DePuy Synthes Receives FDA Clearance for TELIGEN System	Press Release
	U.S. FDA Approves TECVAYLI (teclistamab-cqyv), the First Bispecific T-cell Engager Antibody for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma	Press Release
	Janssen Submits Biologics License Application to U.S. FDA for Talquetamab for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma	Press Release
Data Release	New TREMFYA (guselkumab) Data Shows an Overall Clinical Response Rate of Approximately 80 Percent in a Phase 2b Induction Study of Adults with Moderately to Severely Active Ulcerative Colitis	Press Release
	Janssen to Highlight Latest Scientific Advances in Hematologic Diseases at ASH 2022 with Clinical and Real-World Data Across Innovative Pipeline and Distinguished Portfolio	Press Release
	Late-Breaking Data from Pivotal Phase 3 PRECISION Study Demonstrates Significant and Sustained Effect of Aprocitentan on Lowering Blood Pressure for Patients with Difficult-to-Control Hypertension	Press Release
	New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Active Psoriatic Arthritis Patients With Early Efficacy Had Meaningful Long-Term Improvement in Health-Related Quality of Life	Press Release
	New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Early Efficacy Predicted Longer-Term Efficacy And Sustained Achievement Among A Diverse Active Psoriatic Arthritis Patient Population	Press Release
	CERENOVUS Reveals Positive Outcomes with Thrombectomy in Global Registry Studying Stroke-Inducing Blood Clots	Press Release
Other	Johnson & Johnson Names CEO Joaquin Duato as Chairman of the Board	Press Release
	Johnson & Johnson Completes Acquisition of Abiomed	Press Release

FULL-YEAR 2023 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

($ in Billions, except EPS)	January 2023
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point	3.5% – 4.5% / 4.0%
Operational Sales2,5/ Mid-point2,5 Change vs. Prior Year / Mid-point	$96.9B – $97.9B / $97.4B 4.5% – 5.5% / 5.0%
Estimated Reported Sales3,5/ Mid-point3,5 Change vs. Prior Year / Mid-point	$96.9B – $97.9B / $97.4B 4.5% – 5.5% / 5.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4 Change vs. Prior Year / Mid-point	$10.40 – $10.60 / $10.50 2.5% – 4.5% / 3.5%
Adjusted EPS (Diluted)3,4 / Mid-point3,4 Change vs. Prior Year / Mid-point	$10.45 – $10.65 / $10.55 3.0% – 5.0% / 4.0%

¹ Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures
² Non-GAAP financial measure; excludes the impact of translational currency
³ Calculated using Euro Average Rate: January 2023 = $1.08 (Illustrative purposes only)
⁴ Non-GAAP financial measure; excludes intangible amortization expense and special items
⁵ Excludes COVID-19 Vaccine
Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

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

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:
* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company's website at quarterly results.

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

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at 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)	FOURTH QUARTER														TWELVE MONTHS
						Percent Change														Percent Change
	2022			2021		Total			Operations			Currency			2022			2021		Total			Operations		Currency
Sales to customers by
segment of business
Consumer Health (1)
U.S.	$	1,696		1,529		10.9		%	10.9			-			$	6,599		6,516		1.3		%	1.3		-
International		2,071		2,199		(5.8	)		3.2			(9.0	)			8,354		8,519		(1.9	)		5.3		(7.2	)
		3,767		3,728		1.0			6.4			(5.4	)			14,953		15,035		(0.5	)		3.6		(4.1	)
Pharmaceutical (1)
U.S.		7,375		7,418		(0.6	)		(0.6	)		-				28,604		27,954		2.3			2.3		-
International		5,788		6,799		(14.9	)		(4.5	)		(10.4	)			23,959		23,726		1.0			11.9		(10.9	)
		13,163		14,217		(7.4	)		(2.5	)		(4.9	)			52,563		51,680		1.7			6.7		(5.0	)
Pharmaceutical excluding COVID-19 Vaccine (1,3)
U.S.		7,375		7,205		2.4			2.4			-				28,484		27,320		4.3			4.3		-
International		5,099		5,394		(5.5	)		6.0			(11.5	)			21,900		21,975		(0.3	)		10.3		(10.6	)
		12,474		12,599		(1.0	)		3.9			(4.9	)			50,384		49,295		2.2			6.9		(4.7	)
MedTech (2)
U.S.		3,445		3,216		7.1			7.1			-				13,377		12,686		5.4			5.4		-
International		3,331		3,643		(8.6	)		2.9			(11.5	)			14,050		14,374		(2.3	)		6.9		(9.2	)
		6,776		6,859		(1.2	)		4.9			(6.1	)			27,427		27,060		1.4			6.2		(4.8	)
U.S.		12,516		12,163		2.9			2.9			-				48,580		47,156		3.0			3.0		-
International		11,190		12,641		(11.5	)		(1.1	)		(10.4	)			46,363		46,619		(0.6	)		9.1		(9.7	)
Worldwide		23,706		24,804		(4.4	)		0.9			(5.3	)			94,943		93,775		1.3			6.1		(4.8	)
U.S.		12,516		11,950		4.7			4.7			-				48,460		46,522		4.2			4.2		-
International		10,501		11,236		(6.5	)		4.4			(10.9	)			44,304		44,868		(1.3	)		8.2		(9.5	)
Worldwide excluding COVID-19 Vaccine (3)	$	23,017		23,186		(0.7	)	%	4.6			(5.3	)		$	92,764		91,390		1.5		%	6.2		(4.7	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes.
(2) Previously referred to as Medical Devices.
(3) Refer to supplemental sales reconciliation schedule.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)	FOURTH QUARTER														TWELVE MONTHS
						Percent Change														Percent Change
	2022			2021		Total			Operations			Currency			2022			2021		Total			Operations		Currency
Sales to customers by
geographic area
U.S.	$	12,516		12,163		2.9		%	2.9			-			$	48,580		47,156		3.0		%	3.0		-
Europe		5,816		6,925		(16.0	)		(6.3	)		(9.7	)			23,449		23,594		(0.6	)		11.0		(11.6	)
Western Hemisphere excluding U.S.		1,545		1,459		5.9			11.8			(5.9	)			6,125		5,750		6.5			10.2		(3.7	)
Asia-Pacific, Africa		3,829		4,257		(10.0	)		3.1			(13.1	)			16,789		17,275		(2.8	)		6.2		(9.0	)
International		11,190		12,641		(11.5	)		(1.1	)		(10.4	)			46,363		46,619		(0.6	)		9.1		(9.7	)
Worldwide	$	23,706		24,804		(4.4	)	%	0.9			(5.3	)		$	94,943		93,775		1.3		%	6.1		(4.8	)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	FOURTH QUARTER
	2022							2021					Percent
					Percent						Percent		Increase
	Amount				to Sales			Amount			to Sales		(Decrease)
Sales to customers	$	23,706			100.0			$	24,804		100.0		(4.4	)
Cost of products sold		7,765			32.8				7,955		32.1		(2.4	)
Gross Profit		15,941			67.2				16,849		67.9		(5.4	)
Selling, marketing and administrative expenses		6,512			27.4				7,154		28.9		(9.0	)
Research and development expense		3,841			16.2				4,720		19.0		(18.6	)
In-process research and development		173			0.7				0		0.0
Interest (income) expense, net		(77	)		(0.3	)			47		0.2
Other (income) expense, net		1,207			5.1				9		0.0
Restructuring		84			0.4				83		0.3
Earnings before provision for taxes on income		4,201			17.7				4,836		19.5		(13.1	)
Provision for taxes on income		681			2.9				100		0.4		581.0
Net earnings	$	3,520			14.8			$	4,736		19.1		(25.7	)
Net earnings per share (Diluted)	$	1.33						$	1.77				(24.9	)
Average shares outstanding (Diluted)		2,650.1							2,670.2
Effective tax rate		16.2		%					2.1	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	7,418			31.3			$	6,339		25.6		17.0
Net earnings	$	6,218			26.2			$	5,678		22.9		9.5
Net earnings per share (Diluted)	$	2.35						$	2.13				10.3
Effective tax rate		16.2		%					10.4	%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)	TWELVE MONTHS
	2022							2021					Percent
					Percent						Percent		Increase
	Amount				to Sales			Amount			to Sales		(Decrease)
Sales to customers	$	94,943			100.0			$	93,775		100.0		1.3
Cost of products sold		31,089			32.7				29,855		31.8		4.1
Gross Profit		63,854			67.3				63,920		68.2		(0.1	)
Selling, marketing and administrative expenses		24,765			26.1				24,659		26.3		0.4
Research and development expense		14,603			15.4				14,714		15.7		(0.8	)
In-process research and development		783			0.8				900		1.0
Interest (income) expense, net		(214	)		(0.2	)			130		0.1
Other (income) expense, net		1,871			2.0				489		0.5
Restructuring		321			0.3				252		0.3
Earnings before provision for taxes on income		21,725			22.9				22,776		24.3		(4.6	)
Provision for taxes on income		3,784			4.0				1,898		2.0		99.4
Net earnings	$	17,941			18.9			$	20,878		22.3		(14.1	)
Net earnings per share (Diluted)	$	6.73						$	7.81				(13.8	)
Average shares outstanding (Diluted)		2,663.9							2,674.0
Effective tax rate		17.4		%					8.3	%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	31,880			33.6			$	30,464		32.5		4.6
Net earnings	$	27,038			28.5			$	26,195		27.9		3.2
Net earnings per share (Diluted)	$	10.15						$	9.80				3.6
Effective tax rate		15.2		%					14.0	%
(1) See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
		Fourth Quarter						Twelve Months Ended
	(Dollars in Millions Except Per Share Data)	2022			2021			2022			2021
	Net Earnings, after tax- as reported	$3,520			$4,736			$17,941			$20,878
	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,061			1,121			4,305			4,697
	Litigation related	262			274			866			2,328
	IPR&D	173			-			783			900
	Restructuring related	140			140			463			473
	Acquisition, integration and divestiture related ¹	196			26			196			(478	)
	(Gains)/losses on securities	6			(198	)		690			(533	)
	Medical Device Regulation 2	88			73			296			234
	COVID-19 Vaccine related costs 3	821			-			1,474			-
	Consumer Health separation costs	470			67			1,089			67
	Other	-			-			(7	)		-
	Tax Adjustments
	Tax impact on special item adjustments 4	(507	)		(184	)		(1,592	)		(1,281	)
	Consumer Health separation tax related costs	35			-			494			-
	Tax legislation and other tax related	(47	)		(377	)		40			(1,090	)
	Adjusted Net Earnings, after tax	$6,218			$5,678			$27,038			$26,195
	Average shares outstanding (Diluted)	2,650.1			2,670.2			2,663.9			2,674.0
	Adjusted net earnings per share (Diluted)	$2.35			$2.13			$10.15			$9.80
	Operational adjusted net earnings per share (Diluted)	$2.46						$10.70
	Notes:
1	Acquisition, integration and divestiture related for 2022 primarily includes costs related to the Abiomed acquisition. Acquisition, integration and divestiture related for 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.
2	European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.
3	COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's modification of its COVID-19 vaccine research program and manufacturing capacity to levels that meet all remaining customer contractual requirements.
4	The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
FOURTH QUARTER 2022 ACTUAL vs. 2021 ACTUAL
Segments
		Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported		1.0	%		(7.4	)%		(1.2	)%		(4.4	)%
U.S.		10.9	%		(0.6	)%		7.1	%		2.9	%
International		(5.8	)%		(14.9	)%		(8.6	)%		(11.5	)%
WW Currency		(5.4	)		(4.9	)		(6.1	)		(5.3	)
U.S.		-			-			-			-
International		(9.0	)		(10.4	)		(11.5	)		(10.4	)
WW Operational		6.4	%		(2.5	)%		4.9	%		0.9	%
U.S.		10.9	%		(0.6	)%		7.1	%		2.9	%
International		3.2	%		(4.5	)%		2.9	%		(1.1	)%
Interventional Solutions
Abiomed								(0.5	)		(0.1	)
U.S.								(1.0	)		(0.3	)
International								0.0			0.0
All Other Acquisitions and Divestitures		0.0			0.2			0.0			0.1
U.S.		0.1			0.2			(0.2	)		0.1
International		0.0			0.1			0.1			0.1
WW Adjusted Operational		6.4	%		(2.3	)%		4.4	%		0.8	%
U.S.		11.0	%		(0.4	)%		5.9	%		2.7	%
International		3.2	%		(4.4	)%		3.0	%		(1.0	)%
Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
TWELVE MONTHS 2022 ACTUAL vs. 2021 ACTUAL
Segments
		Consumer Health			Pharmaceutical			MedTech			Total
WW As Reported		(0.5	)%		1.7	%		1.4	%		1.3	%
U.S.		1.3	%		2.3	%		5.4	%		3.0	%
International		(1.9	)%		1.0	%		(2.3	)%		(0.6	)%
WW Currency		(4.1	)		(5.0	)		(4.8	)		(4.8	)
U.S.		-			-			-			-
International		(7.2	)		(10.9	)		(9.2	)		(9.7	)
WW Operational		3.6	%		6.7	%		6.2	%		6.1	%
U.S.		1.3	%		2.3	%		5.4	%		3.0	%
International		5.3	%		11.9	%		6.9	%		9.1	%
All Other Acquisitions and Divestitures		0.3			0.1			(0.1	)		0.1
U.S.		0.2			0.2			(0.4	)		0.0
International		0.5			0.1			0.1			0.2
WW Adjusted Operational		3.9	%		6.8	%		6.1	%		6.2	%
U.S.		1.5	%		2.5	%		5.0	%		3.0	%
International		5.8	%		12.0	%		7.0	%		9.3	%
Note: Percentages are based on actual, non-rounded figures and may not sum

	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER													TWELVE MONTHS
						% Change												% Change
		2022			2021	Reported		Operational (1)		Currency				2022			2021	Reported		Operational (1)		Currency
CONSUMER HEALTH SEGMENT (2,3)
OTC
US		$	754		633	18.9	%	18.9	%	-				$	2,782		2,594	7.3	%	7.3	%	-
Intl			815		811	0.6	%	9.6	%	-9.0	%				3,249		3,034	7.1	%	14.5	%	-7.4	%
WW			1,569		1,444	8.6	%	13.7	%	-5.1	%				6,031		5,627	7.2	%	11.2	%	-4.0	%
SKIN HEALTH / BEAUTY
US			573		538	6.5	%	6.5	%	-					2,337		2,400	-2.6	%	-2.6	%	-
Intl			515		546	-5.6	%	4.4	%	-10.0	%				2,015		2,141	-5.9	%	2.2	%	-8.1	%
WW			1,088		1,084	0.4	%	5.4	%	-5.0	%				4,352		4,541	-4.2	%	-0.4	%	-3.8	%
ORAL CARE
US			164		159	3.3	%	3.3	%	-					635		637	-0.3	%	-0.3	%	-
Intl			207		246	-16.0	%	-8.1	%	-7.9	%				871		1,008	-13.6	%	-7.4	%	-6.2	%
WW			370		405	-8.4	%	-3.7	%	-4.7	%				1,505		1,645	-8.5	%	-4.7	%	-3.8	%
BABY CARE
US			93		90	3.4	%	3.4	%	-					357		378	-5.5	%	-5.5	%	-
Intl			264		309	-14.6	%	-7.4	%	-7.2	%				1,104		1,188	-7.1	%	-1.4	%	-5.7	%
WW			356		399	-10.6	%	-5.0	%	-5.6	%				1,461		1,566	-6.7	%	-2.4	%	-4.3	%
WOMEN'S HEALTH
US			4		4	15.6	%	15.6	%	-					13		13	1.7	%	1.7	%	-
Intl			217		230	-5.7	%	4.4	%	-10.1	%				891		905	-1.5	%	7.1	%	-8.6	%
WW			220		233	-5.5	%	4.6	%	-10.1	%				904		917	-1.5	%	7.0	%	-8.5	%
WOUND CARE / OTHER
US			109		106	3.3	%	3.3	%	-					475		495	-4.0	%	-4.0	%	-
Intl			54		57	-7.5	%	2.9	%	-10.4	%				224		243	-8.0	%	-3.4	%	-4.6	%
WW			163		164	-0.5	%	3.1	%	-3.6	%				700		739	-5.3	%	-3.8	%	-1.5	%
TOTAL CONSUMER HEALTH
US			1,696		1,529	10.9	%	10.9	%	-					6,599		6,516	1.3	%	1.3	%	-
Intl			2,071		2,199	-5.8	%	3.2	%	-9.0	%				8,354		8,519	-1.9	%	5.3	%	-7.2	%
WW		$	3,767		3,728	1.0	%	6.4	%	-5.4	%			$	14,953		15,035	-0.5	%	3.6	%	-4.1	%
See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER													TWELVE MONTHS
						% Change												% Change
PHARMACEUTICAL SEGMENT (2,3)		2022			2021	Reported		Operational (1)		Currency				2022			2021	Reported		Operational (1)		Currency
IMMUNOLOGY
US		$	2,805		2,912	-3.6	%	-3.6	%	-				$	11,036		10,843	1.8	%	1.8	%	-
Intl			1,312		1,443	-9.1	%	2.1	%	-11.2	%				5,899		5,907	-0.1	%	10.3	%	-10.4	%
WW			4,118		4,355	-5.4	%	-1.8	%	-3.6	%				16,935		16,750	1.1	%	4.8	%	-3.7	%
REMICADE
US			318		511	-37.7	%	-37.7	%	-					1,417		2,019	-29.8	%	-29.8	%	-
US Exports (4)			41		39	5.1	%	5.1	%	-					204		236	-13.6	%	-13.6	%	-
Intl			116		214	-45.9	%	-41.3	%	-4.6	%				722		935	-22.8	%	-18.7	%	-4.1	%
WW			475		764	-37.8	%	-36.5	%	-1.3	%				2,343		3,190	-26.6	%	-25.3	%	-1.3	%
SIMPONI / SIMPONI ARIA
US			280		287	-2.2	%	-2.2	%	-					1,166		1,127	3.5	%	3.5	%	-
Intl			220		271	-18.6	%	-7.4	%	-11.2	%				1,017		1,148	-11.4	%	-1.4	%	-10.0	%
WW			501		559	-10.2	%	-4.7	%	-5.5	%				2,184		2,276	-4.0	%	1.0	%	-5.0	%
STELARA
US			1,621		1,542	5.2	%	5.2	%	-					6,388		5,938	7.6	%	7.6	%	-
Intl			764		792	-3.5	%	8.1	%	-11.6	%				3,335		3,196	4.4	%	15.7	%	-11.3	%
WW			2,386		2,334	2.3	%	6.2	%	-3.9	%				9,723		9,134	6.5	%	10.4	%	-3.9	%
TREMFYA
US			541		528	2.5	%	2.5	%	-					1,844		1,503	22.7	%	22.7	%	-
Intl			211		165	27.5	%	44.5	%	-17.0	%				824		624	32.0	%	47.8	%	-15.8	%
WW			752		693	8.5	%	12.5	%	-4.0	%				2,668		2,127	25.4	%	30.1	%	-4.7	%
OTHER IMMUNOLOGY
US			3		6	-53.5	%	-53.5	%	-					17		21	-18.4	%	-18.4	%	-
Intl			0		0	*		*		*					0		3	*		*		*
WW			3		6	-53.3	%	-53.3	%	0.0	%				17		24	-28.2	%	-28.2	%	0.0	%
INFECTIOUS DISEASES
US			414		614	-32.6	%	-32.6	%	-					1,680		2,249	-25.3	%	-25.3	%	-
Intl			1,127		1,818	-38.0	%	-31.0	%	-7.0	%				3,769		3,576	5.4	%	17.3	%	-11.9	%
WW			1,540		2,431	-36.6	%	-31.4	%	-5.2	%				5,449		5,825	-6.5	%	0.8	%	-7.3	%
COVID-19 VACCINE
US			0		213	*		*		-					120		634	-81.1	%	-81.1	%	-
Intl			689		1,405	-50.9	%	-45.0	%	-5.9	%				2,059		1,751	17.6	%	32.1	%	-14.5	%
WW			689		1,619	-57.4	%	-52.2	%	-5.2	%				2,179		2,385	-8.6	%	2.0	%	-10.6	%
EDURANT / rilpivirine
US			9		10	1.2	%	1.2	%	-					36		41	-10.8	%	-10.8	%	-
Intl			281		220	27.6	%	39.2	%	-11.6	%				972		953	2.0	%	12.7	%	-10.7	%
WW			290		230	26.5	%	37.6	%	-11.1	%				1,008		994	1.5	%	11.8	%	-10.3	%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US			398		380	4.7	%	4.7	%	-					1,494		1,508	-1.0	%	-1.0	%	-
Intl			95		135	-29.5	%	-20.5	%	-9.0	%				449		575	-21.9	%	-13.4	%	-8.5	%
WW			493		515	-4.3	%	-1.9	%	-2.4	%				1,943		2,083	-6.7	%	-4.4	%	-2.3	%
OTHER INFECTIOUS DISEASES
US			6		11	-47.1	%	-47.1	%	-					30		66	-55.5	%	-55.5	%	-
Intl			61		57	7.3	%	18.0	%	-10.7	%				289		297	-2.6	%	3.6	%	-6.2	%
WW			67		68	-1.6	%	7.4	%	-9.0	%				318		363	-12.3	%	-7.2	%	-5.1	%

	REPORTED SALES vs. PRIOR PERIOD ($MM)											REPORTED SALES vs. PRIOR PERIOD ($MM)
		FOURTH QUARTER											TWELVE MONTHS
					% Change											% Change
		2022		2021	Reported		Operational (1)		Currency				2022		2021	Reported		Operational (1)		Currency
NEUROSCIENCE
US		912		899	1.4	%	1.4	%	-				3,570		3,347	6.7	%	6.7	%	-
Intl		825		890	-7.2	%	3.3	%	-10.5	%			3,323		3,641	-8.7	%	0.4	%	-9.1	%
WW		1,737		1,789	-2.8	%	2.4	%	-5.2	%			6,893		6,988	-1.4	%	3.4	%	-4.8	%
CONCERTA / Methylphenidate
US		37		55	-34.3	%	-34.3	%	-				151		172	-12.5	%	-12.5	%	-
Intl		131		123	6.5	%	20.3	%	-13.8	%			493		495	-0.4	%	9.9	%	-10.3	%
WW		168		178	-6.2	%	3.4	%	-9.6	%			644		667	-3.5	%	4.1	%	-7.6	%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		678		668	1.8	%	1.8	%	-				2,714		2,550	6.5	%	6.5	%	-
Intl		329		361	-8.8	%	2.7	%	-11.5	%			1,426		1,472	-3.1	%	7.8	%	-10.9	%
WW		1,008		1,029	-2.0	%	2.1	%	-4.1	%			4,140		4,022	3.0	%	6.9	%	-3.9	%
RISPERDAL CONSTA
US		62		77	-19.4	%	-19.4	%	-				257		287	-10.4	%	-10.4	%	-
Intl		50		63	-21.5	%	-9.7	%	-11.8	%			228		305	-25.3	%	-15.5	%	-9.8	%
WW		112		140	-20.4	%	-15.0	%	-5.4	%			485		592	-18.1	%	-13.0	%	-5.1	%
OTHER NEUROSCIENCE
US		134		99	35.5	%	35.5	%	-				447		338	32.4	%	32.4	%	-
Intl		315		342	-7.7	%	0.3	%	-8.0	%			1,176		1,368	-14.1	%	-7.5	%	-6.6	%
WW		449		441	2.0	%	8.2	%	-6.2	%			1,623		1,706	-4.9	%	0.4	%	-5.3	%
ONCOLOGY
US		1,857		1,594	16.5	%	16.5	%	-				6,930		5,958	16.3	%	16.3	%	-
Intl		2,069		2,184	-5.3	%	6.8	%	-12.1	%			9,052		8,590	5.4	%	17.3	%	-11.9	%
WW		3,927		3,778	3.9	%	10.9	%	-7.0	%			15,983		14,548	9.9	%	16.9	%	-7.0	%
DARZALEX
US		1,139		867	31.4	%	31.4	%	-				4,210		3,169	32.8	%	32.8	%	-
Intl		944		778	21.3	%	36.7	%	-15.4	%			3,767		2,854	32.0	%	47.0	%	-15.0	%
WW		2,083		1,645	26.6	%	33.9	%	-7.3	%			7,977		6,023	32.4	%	39.5	%	-7.1	%
ERLEADA
US		275		235	17.2	%	17.2	%	-				968		813	19.2	%	19.2	%	-
Intl		266		149	78.0	%	97.8	%	-19.8	%			913		478	*		*		*
WW		541		384	40.9	%	48.6	%	-7.7	%			1,881		1,291	45.7	%	53.0	%	-7.3	%
IMBRUVICA
US		318		436	-27.0	%	-27.0	%	-				1,390		1,747	-20.4	%	-20.4	%	-
Intl		547		626	-12.5	%	-2.0	%	-10.5	%			2,394		2,622	-8.7	%	1.0	%	-9.7	%
WW		866		1,062	-18.5	%	-12.3	%	-6.2	%			3,784		4,369	-13.4	%	-7.6	%	-5.8	%
ZYTIGA / abiraterone acetate
US		20		23	-14.3	%	-14.3	%	-				74		119	-37.8	%	-37.8	%	-
Intl		250		525	-52.4	%	-44.8	%	-7.6	%			1,696		2,178	-22.1	%	-12.3	%	-9.8	%
WW		270		548	-50.8	%	-43.6	%	-7.2	%			1,770		2,297	-22.9	%	-13.6	%	-9.3	%
OTHER ONCOLOGY
US		106		34	*		*		-				289		110	*		*		-
Intl		63		106	-41.1	%	-33.1	%	-8.0	%			283		458	-38.3	%	-31.6	%	-6.7	%
WW		168		140	20.6	%	26.7	%	-6.1	%			571		568	0.6	%	6.0	%	-5.4	%

	REPORTED SALES vs. PRIOR PERIOD ($MM)													REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER													TWELVE MONTHS
						% Change												% Change
		2022			2021	Reported		Operational (1)		Currency				2022			2021	Reported		Operational (1)		Currency
PULMONARY HYPERTENSION
US			610		587	3.9	%	3.9	%	-					2,346		2,365	-0.8	%	-0.8	%	-
Intl			261		264	-1.3	%	13.5	%	-14.8	%				1,071		1,085	-1.3	%	11.2	%	-12.5	%
WW			870		851	2.3	%	6.9	%	-4.6	%				3,417		3,450	-1.0	%	3.0	%	-4.0	%
OPSUMIT
US			305		286	7.0	%	7.0	%	-					1,132		1,147	-1.3	%	-1.3	%	-
Intl			156		162	-3.7	%	11.0	%	-14.7	%				651		672	-3.2	%	9.3	%	-12.5	%
WW			461		448	3.1	%	8.4	%	-5.3	%				1,783		1,819	-2.0	%	2.6	%	-4.6	%
UPTRAVI
US			280		264	6.3	%	6.3	%	-					1,104		1,056	4.5	%	4.5	%	-
Intl			56		46	20.4	%	33.3	%	-12.9	%				218		181	20.4	%	32.4	%	-12.0	%
WW			336		310	8.4	%	10.3	%	-1.9	%				1,322		1,237	6.9	%	8.6	%	-1.7	%
OTHER PULMONARY HYPERTENSION
US			24		38	-35.5	%	-35.5	%	-					110		163	-32.3	%	-32.3	%	-
Intl			48		56	-12.2	%	4.4	%	-16.6	%				202		232	-12.8	%	0.3	%	-13.1	%
WW			73		94	-21.7	%	-11.8	%	-9.9	%				313		395	-20.8	%	-13.1	%	-7.7	%
CARDIOVASCULAR / METABOLISM / OTHER
US			776		813	-4.4	%	-4.4	%	-					3,042		3,192	-4.7	%	-4.7	%	-
Intl			194		200	-3.4	%	5.7	%	-9.1	%				845		927	-8.9	%	-1.7	%	-7.2	%
WW			971		1,013	-4.2	%	-2.4	%	-1.8	%				3,887		4,119	-5.6	%	-4.0	%	-1.6	%
XARELTO
US			667		644	3.4	%	3.4	%	-					2,473		2,438	1.4	%	1.4	%	-
Intl			-		-	-		-		-					-		-	-		-		-
WW			667		644	3.4	%	3.4	%	-					2,473		2,438	1.4	%	1.4	%	-
INVOKANA / INVOKAMET
US			29		59	-51.3	%	-51.3	%	-					193		308	-37.4	%	-37.4	%	-
Intl			62		60	2.3	%	11.2	%	-8.9	%				255		254	0.1	%	7.3	%	-7.2	%
WW			91		120	-24.1	%	-19.6	%	-4.5	%				448		563	-20.4	%	-17.2	%	-3.2	%
OTHER
US			81		110	-25.7	%	-25.7	%	-					376		446	-15.5	%	-15.5	%	-
Intl			132		140	-5.9	%	3.3	%	-9.2	%				590		673	-12.3	%	-5.1	%	-7.2	%
WW			213		250	-14.6	%	-9.4	%	-5.2	%				966		1,119	-13.6	%	-9.3	%	-4.3	%
TOTAL PHARMACEUTICAL
US			7,375		7,418	-0.6	%	-0.6	%	-					28,604		27,954	2.3	%	2.3	%	-
Intl			5,788		6,799	-14.9	%	-4.5	%	-10.4	%				23,959		23,726	1.0	%	11.9	%	-10.9	%
WW		$	13,163		14,217	-7.4	%	-2.5	%	-4.9	%			$	52,563		51,680	1.7	%	6.7	%	-5.0	%
See footnotes at end of schedule

		REPORTED SALES vs. PRIOR PERIOD ($MM)												REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER													TWELVE MONTHS
						% Change												% Change
MEDTECH SEGMENT (2,3,5)		2022			2021	Reported		Operational (1)		Currency				2022			2021	Reported		Operational (1)		Currency
INTERVENTIONAL SOLUTIONS
US		$	603		483	24.9	%	24.9	%	-				$	2,169		1,836	18.2	%	18.2	%	-
Intl			495		536	-7.6	%	6.2	%	-13.8	%				2,131		2,135	-0.2	%	9.9	%	-10.1	%
WW			1,098		1,019	7.8	%	15.1	%	-7.3	%				4,300		3,971	8.3	%	13.7	%	-5.4	%
ORTHOPAEDICS
US			1,385		1,305	6.1	%	6.1	%	-					5,321		5,126	3.8	%	3.8	%	-
Intl			763		851	-10.4	%	0.8	%	-11.2	%				3,267		3,462	-5.6	%	3.4	%	-9.0	%
WW			2,148		2,155	-0.4	%	4.0	%	-4.4	%				8,587		8,588	0.0	%	3.7	%	-3.7	%
HIPS
US			250		227	9.7	%	9.7	%	-					943		878	7.3	%	7.3	%	-
Intl			135		151	-10.4	%	0.4	%	-10.8	%				571		602	-5.1	%	3.6	%	-8.7	%
WW			385		378	1.7	%	6.0	%	-4.3	%				1,514		1,480	2.3	%	5.8	%	-3.5	%
KNEES
US			231		208	11.8	%	11.8	%	-					851		787	8.2	%	8.2	%	-
Intl			122		135	-9.5	%	1.2	%	-10.7	%				508		538	-5.7	%	3.1	%	-8.8	%
WW			354		342	3.4	%	7.6	%	-4.2	%				1,359		1,325	2.6	%	6.1	%	-3.5	%
TRAUMA
US			470		467	0.7	%	0.7	%	-					1,882		1,819	3.5	%	3.5	%	-
Intl			240		261	-7.9	%	3.5	%	-11.4	%				989		1,066	-7.2	%	2.6	%	-9.8	%
WW			710		728	-2.4	%	1.7	%	-4.1	%				2,871		2,885	-0.5	%	3.1	%	-3.6	%
SPINE, SPORTS & OTHER
US			434		403	7.5	%	7.5	%	-					1,645		1,642	0.2	%	0.2	%	-
Intl			265		304	-12.9	%	-1.5	%	-11.4	%				1,198		1,256	-4.6	%	4.3	%	-8.9	%
WW			699		708	-1.3	%	3.6	%	-4.9	%				2,843		2,898	-1.9	%	1.9	%	-3.8	%

	REPORTED SALES vs. PRIOR PERIOD ($MM)												REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER												TWELVE MONTHS
						% Change												% Change
		2022			2021	Reported		Operational (1)		Currency				2022			2021	Reported		Operational (1)		Currency
SURGERY
US			1,000		986	1.5	%	1.5	%	-					3,897		3,867	0.8	%	0.8	%	-
Intl			1,383		1,527	-9.4	%	1.4	%	-10.8	%				5,793		5,945	-2.6	%	5.7	%	-8.3	%
WW			2,384		2,513	-5.1	%	1.4	%	-6.5	%				9,690		9,812	-1.2	%	3.8	%	-5.0	%
ADVANCED
US			456		457	-0.2	%	-0.2	%	-					1,784		1,761	1.3	%	1.3	%	-
Intl			653		735	-11.1	%	-0.4	%	-10.7	%				2,785		2,861	-2.6	%	5.3	%	-7.9	%
WW			1,109		1,192	-7.0	%	-0.3	%	-6.7	%				4,569		4,622	-1.1	%	3.8	%	-4.9	%
GENERAL
US			544		528	3.1	%	3.1	%	-					2,113		2,105	0.4	%	0.4	%	-
Intl			731		793	-7.8	%	3.0	%	-10.8	%				3,008		3,085	-2.5	%	6.2	%	-8.7	%
WW			1,275		1,321	-3.5	%	3.0	%	-6.5	%				5,121		5,190	-1.3	%	3.8	%	-5.1	%
VISION
US			456		443	3.1	%	3.1	%	-					1,990		1,857	7.2	%	7.2	%	-
Intl			689		728	-5.4	%	5.9	%	-11.3	%				2,859		2,831	1.0	%	11.1	%	-10.1	%
WW			1,145		1,171	-2.2	%	4.8	%	-7.0	%				4,849		4,688	3.4	%	9.5	%	-6.1	%
CONTACT LENSES / OTHER
US			343		316	8.6	%	8.6	%	-					1,522		1,398	8.9	%	8.9	%	-
Intl			489		518	-5.6	%	7.2	%	-12.8	%				2,022		2,043	-1.0	%	10.1	%	-11.1	%
WW			831		833	-0.2	%	7.7	%	-7.9	%				3,543		3,440	3.0	%	9.6	%	-6.6	%
SURGICAL
US			113		126	-10.7	%	-10.7	%	-					468		459	2.0	%	2.0	%	-
Intl			200		211	-5.0	%	2.9	%	-7.9	%				837		788	6.2	%	13.7	%	-7.5	%
WW			314		338	-7.1	%	-2.2	%	-4.9	%				1,306		1,248	4.6	%	9.4	%	-4.8	%
TOTAL MEDTECH
US			3,445		3,216	7.1	%	7.1	%	-					13,377		12,686	5.4	%	5.4	%	-
Intl			3,331		3,643	-8.6	%	2.9	%	-11.5	%				14,050		14,374	-2.3	%	6.9	%	-9.2	%
WW		$	6,776		6,859	-1.2	%	4.9	%	-6.1	%			$	27,427		27,060	1.4	%	6.2	%	-4.8	%
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales
(5) Previously referred to as Medical Devices

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
		FOURTH QUARTER														TWELVE MONTHS
							Percent Change														Percent Change
		2022			2021		Total			Operations			Currency			2022			2021		Total			Operations			Currency
Pharmaceutical
U.S.		$	7,375		7,418		(0.6	)	%	(0.6	)		-			$	28,604		27,954		2.3		%	2.3			-
International			5,788		6,799		(14.9	)		(4.5	)		(10.4	)			23,959		23,726		1.0			11.9			(10.9	)
Worldwide			13,163		14,217		(7.4	)		(2.5	)		(4.9	)			52,563		51,680		1.7			6.7			(5.0	)
COVID-19 Vaccine
U.S.			0		213		*			*			-				120		634		(81.1	)		(81.1	)		-
International			689		1,405		(50.9	)		(45.0	)		(5.9	)			2,059		1,751		17.6			32.1			(14.5	)
Worldwide			689		1,619		(57.4	)		(52.2	)		(5.2	)			2,179		2,385		(8.6	)		2.0			(10.6	)
Pharmaceutical excluding COVID-19 Vaccine
U.S.			7,375		7,205		2.4			2.4			-				28,484		27,320		4.3			4.3			-
International			5,099		5,394		(5.5	)		6.0			(11.5	)			21,900		21,975		(0.3	)		10.3			(10.6	)
Worldwide			12,474		12,599		(1.0	)		3.9			(4.9	)			50,384		49,295		2.2			6.9			(4.7	)
Worldwide
U.S.			12,516		12,163		2.9			2.9			-				48,580		47,156		3.0			3.0			-
International			11,190		12,641		(11.5	)		(1.1	)		(10.4	)			46,363		46,619		(0.6	)		9.1			(9.7	)
Worldwide			23,706		24,804		(4.4	)		0.9			(5.3	)			94,943		93,775		1.3			6.1			(4.8	)
COVID-19 Vaccine
U.S.			0		213		*			*			-				120		634		(81.1	)		(81.1	)		-
International			689		1,405		(50.9	)		(45.0	)		(5.9	)			2,059		1,751		17.6			32.1			(14.5	)
Worldwide			689		1,619		(57.4	)		(52.2	)		(5.2	)			2,179		2,385		(8.6	)		2.0			(10.6	)
Worldwide
U.S.			12,516		11,950		4.7			4.7			-				48,460		46,522		4.2			4.2			-
International			10,501		11,236		(6.5	)		4.4			(10.9	)			44,304		44,868		(1.3	)		8.2			(9.5	)
Worldwide excluding COVID-19 Vaccine		$	23,017		23,186		(0.7	)	%	4.6			(5.3	)		$	92,764		91,390		1.5		%	6.2			(4.7	)
Note: Columns and rows within tables may not add due to rounding
* Percentage greater than 100% or not meaningful

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 QTD - Income Before Tax by Segment*
Dollars in Millions
	Consumer Health1						Pharmaceutical1						MedTech						Unallocated						Consumer Health Separation Costs						Worldwide Total
	2022			2021			2022			2021			2022			2021			2022			2021			2022			2021			2022			2021
Reported Income Before Tax by Segment$	651			442			3,308			4,306			865			575			(153	)		(420	)		(470	)		(67	)		4,201			4,836
% to Sales	17.3	%		11.9	%		25.1	%		30.3	%		12.8	%		8.4	%		-0.6	%		-1.7	%		-2.0	%		-0.3	%		17.7	%		19.5	%
Intangible asset amortization expense	84			100			717			761			260			260			-			-			-			-			1,061			1,121
In-process research and development	-			-			173			-			-			-			-			-			-			-			173			-
Litigation related	72			122			61			(35	)		129			187			-			-			-			-			262			274
Loss/(gain) on securities	-			1			23			(237	)		(17	)		38			-			-			-			-			6			(198	)
Restructuring related	21			28			31			22			88			90			-			-			-			-			140			140
Acquisition, integration and divestiture related	-			-			(104	)		5			300			21			-			-			-			-			196			26
Medical Device Regulation	-			-			-			-			88			73			-			-			-			-			88			73
COVID-19 Vaccine related costs	-			-			821			-			-			-			-			-			-			-			821			-
Consumer Health separation costs	-			-			-			-			-			-			-			-			470			67			470			67
Other	-			-			-			-			-			-			-			-			-			-			-			-
Adjusted Income Before Tax by Segment$	828			693			5,030			4,822			1,713			1,244			(153	)		(420	)		-			-			7,418			6,339
% to Sales	22.0	%		18.6	%		38.2	%		33.9	%		25.3	%		18.1	%		-0.6	%		-1.7	%		0.0	%		0.0	%		31.3	%		25.6	%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 1/24/2023

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q4 YTD - Income Before Tax by Segment*
Dollars in Millions
																									Consumer Health Separation Costs
	Consumer Health1						Pharmaceutical1						MedTech						Unallocated												Worldwide Total
	2022			2021			2022			2021			2022			2021			2022			2021			2022			2021			2022			2021
Reported Income Before Tax by Segment$	2,930			1,573			15,901			17,969			4,607			4,373			(624	)		(1,072	)		(1,089	)		(67	)		21,725			22,776
% to Sales	19.6	%		10.5	%		30.3	%		34.8	%		16.8	%		16.2	%		-0.7	%		-1.1	%		-1.1	%		-0.1	%		22.9	%		24.3	%
Intangible asset amortization expense	361			414			2,911			3,258			1,033			1,025			-			-			-			-			4,305			4,697
In-process research and development	-			-			783			-			-			900			-			-			-			-			783			900
Litigation related	150			1,603			104			640			612			85			-			-			-			-			866			2,328
Loss/(gain) on securities	-			(18	)		696			(486	)		(6	)		(29	)		-			-			-			-			690			(533	)
Restructuring related	91			119			63			76			309			278			-			-			-			-			463			473
Acquisition, integration and divestiture related	-			-			(104	)		(562	)		300			84			-			-			-			-			196			(478	)
Medical Device Regulation	-			-			-			-			296			234			-			-			-			-			296			234
COVID-19 Vaccine related costs	-			-			1,474			-			-			-			-			-			-			-			1,474			-
Consumer Health separation costs	-						-			-			-			-			-			-			1,089			67			1,089			67
Other	-			-			-			-			-			-			(7	)		-			-			-			(7	)		-
Adjusted Income Before Tax by Segment$	3,532			3,691			21,828			20,895			7,151			6,950			(631	)		(1,072	)		-			-			31,880			30,464
% to Sales	23.6	%		24.5	%		41.5	%		40.4	%		26.1	%		25.7	%		-0.7	%		-1.1	%		0.0	%		0.0	%		33.6	%		32.5	%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 1/24/2023

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
																															Consumer Health separation tax related costs
	Fourth Quarter									In-process research and development						Acquisition, integration and divestiture related (1)			(Loss)/gain on securities						COVID-19 Vaccine Related Costs			Consumer Health separation costs						Tax legislation and other tax related						Fourth Quarter
	Jan 1, 2023 GAAP			Intangible asset amortization			Litigation related						Restructuring related									Medical Device Regulation															Other			Jan 1, 2023 Non-GAAP
Cost of products sold	$	7,765		(1,060	)								(36	)								(33	)		(160	)		(4	)		-			-			-			6,472
Selling, marketing and admin expenses		6,512																				(9	)		-			(43	)											6,460
Research and development expense		3,841														-						(46	)		(114	)		-												3,681
Other (Income) / Expense		1,207		(1	)		(262	)					(20	)		(196	)		(6	)					(547	)		(423	)		-						-			(248	)
In-process research and development		173								(173	)																													-
Restructuring		84											(84	)																										-
Provision for taxes on income		681		165			(36	)		40			21			5			2			17			199			94			(35	)		47			-			1,200
Net Earnings		3,520		896			298			133			119			191			4			71			622			376			35			(47	)		-			6,218
																															Consumer Health separation tax related costs
	Fourth Quarter									In-process research and development						Acquisition, integration and divestiture related			(Loss)/gain on securities						COVID-19 Vaccine Related Costs			Consumer Health separation costs						Tax legislation and other tax related						Fourth Quarter
	Jan 2, 2022 GAAP			Intangible asset amortization			Litigation related						Restructuring related									Medical Device Regulation															Other			Jan 2, 2022 Non-GAAP
Cost of products sold	$	7,955		(1,111	)								(21	)								(26	)																	6,797
Selling, marketing and admin expenses		7,154																				(7	)																	7,147
Research and development expense		4,720														-						(40	)																	4,680
Other (Income) / Expense		9		(10	)		(274	)					(36	)		(26	)		198						-			(67	)		-						-			(206	)
In-process research and development		-								-																														-
Restructuring		83											(83	)																										-
Provision for taxes on income		100		162			49			-			27			6			(89	)		14			-			15			-			377			-			661
Net Earnings		4,736		959			225			-			113			20			(109	)		59			-			52			-			(377	)		-			5,678
Year to Date
																															Consumer Health separation tax related costs
	Twelve Months									In-process research and development						Acquisition, integration and divestiture related (1)			(Loss)/gain on securities						COVID-19 Vaccine Related Costs			Consumer Health separation costs						Tax legislation and other tax related						Twelve Months
	Jan 1, 2023 GAAP			Intangible asset amortization			Litigation related						Restructuring related									Medical Device Regulation															Other			Jan 1, 2023 Non-GAAP
Cost of products sold	$	31,089		(4,292	)								(82	)								(109	)		(456	)		(4	)											26,146
Selling, marketing and admin expenses		24,765																				(28	)					(45	)											24,692
Research and development expense		14,603														-						(159	)		(304	)														14,140
Other (Income) / Expense		1,871		(13	)		(866	)					(60	)		(196	)		(690	)					(714	)		(1,040	)		-						7			(1,701	)
In-process research and development		783								(783	)					-			-																					-
Restructuring		321											(321	)																										-
Provision for taxes on income		3,784		667			(125	)		178			81			5			166			56			360			206			(494	)		(40	)		(2	)		4,842
Net Earnings		17,941		3,638			991			605			382			191			524			240			1,114			883			494			40			(5	)		27,038
																															Consumer Health separation tax related costs
	Twelve Months									In-process research and development						Acquisition, integration and divestiture related (1)			(Loss)/gain on securities						COVID-19 Vaccine Related Costs			Consumer Health separation costs						Tax legislation and other tax related						Twelve Months
	Jan 2, 2022 GAAP			Intangible asset amortization			Litigation related						Restructuring related									Medical Device Regulation															Other			Jan 2, 2022 Non-GAAP
Cost of products sold	$	29,855		(4,661	)								(86	)								(85	)																	25,023
Selling, marketing and admin expenses		24,659																				(24	)																	24,635
Research and development expense		14,714														-						(125	)																	14,589
Other (Income) / Expense		489		(36	)		(2,328	)					(135	)		478			533						-			(67	)		-						-			(1,066	)
In-process research and development		900								(900	)																													-
Restructuring		252											(252	)																										-
Provision for taxes on income		1,898		667			481			202			86			(98	)		(116	)		44			-			15			-			1,090			-			4,269
Net Earnings		20,878		4,030			1,847			698			387			(380	)		(417	)		190			-			52			-			(1,090	)		-			26,195
(1) 2022 primarily includes costs related to the Abiomed acquisition. 2021 primarily includes gains on the divestitures of two Pharmaceutical brands outside of the United States.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005275/en/

Press Contacts:

Tesia Williams

media-relations@its.jnj.com

Investor Contacts:

Jessica Moore

RA-JJCUS-InvestorRel@ITS.JNJ.com

Source: Johnson & Johnson

FAQ

What were Johnson & Johnson's Q4 2022 sales figures?

Johnson & Johnson reported Q4 sales of $23.7 billion, a decline of 4.4%.

How did Johnson & Johnson's 2022 earnings per share (EPS) change?

The 2022 EPS decreased by 13.8% to $6.73.

What is Johnson & Johnson's guidance for adjusted EPS in 2023?

Johnson & Johnson expects an adjusted EPS of $10.50 for 2023.

What factors contributed to the decline in Johnson & Johnson's Q4 sales?

The decline was primarily driven by unfavorable foreign exchange and reduced COVID-19 Vaccine sales.

What was the operational sales growth for Johnson & Johnson in 2022?

The operational sales growth for 2022 was 6.1%.