Johnson & Johnson Reports Q2 2023 Results

July 20, 2023 at 06:20 AM EDT

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

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 Sales^1,2			7.5%
Adjusted Operational Sales^1,3			6.2%
Adjusted Net Earnings^1,4	$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	Operational^1,2	Currency	Adjusted Operational^1,3
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	Operational^1,2	Currency	Adjusted Operational^1,3
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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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 Sales^1,2,5 Change vs. Prior Year / Mid-point	6.0% – 7.0% / 6.5%	4.5% – 5.5% / 5.0%
Operational Sales^2,5/ 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 Sales^3,5/ 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

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

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

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

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 costs¹		165			276			609			276
	Consumer Health separation costs		282			268			582			370
	Restructuring related²		145			128			275			200
	Medical Device Regulation³		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 adjustments⁴		(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		Consumer Health Separation Costs		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