Johnson & Johnson Reports 2020 Third-Quarter Results

NEW BRUNSWICK, N.J., Oct. 13, 2020 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2020. "Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals," said Alex Gorsky, Chairman and Chief Executive Officer. "I am proud of the relentless passion and Credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic. Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need. This resilient mindset, combined with our strategic capabilities and execution excellence, increase our optimism for continued recovery in 2020 and strong momentum entering into 2021."

OVERALL FINANCIAL RESULTS:

                                                          THIRD QUARTER



       ($ in Millions, except EPS)                 2020    2019    
       
     % Change

    ---


       
              Reported Sales                $21,082 $20,729               1.7%

    ---


       
              Net Earnings                    3,554   1,753             102.7%

    ---


       
              EPS (diluted)                   $1.33   $0.66             101.5%

    ---




       
              Non-GAAP*                              THIRD QUARTER



       ($ in Millions, except EPS)                 2020    2019    
       
     % Change

    ---


       
              Operational Sales1,2              N/A    N/A              1.7%

    ---


       
              Adjusted Operational Sales1,3     N/A    N/A              2.0%

    ---


       
              Adjusted Net Earnings1,4        5,868   5,672               3.5%

    ---


       
              Adjusted EPS (diluted)1,4       $2.20   $2.12               3.8%

    ---


                            (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

REGIONAL SALES RESULTS:

                                            THIRD QUARTER 
     
            % Change



                                                                                                                              
      
                Adjusted
    ($ in Millions) (1)               2020                    2019             Reported       Operational      Currency
                                          (2)                    (2)                 (2)          1,2                 (2)       Operational1,3

    ---

                        U.S.                      $11,086              $10,791           2.7%             2.7%                                         2.8

    ---

                        International               9,996                9,938           0.6%             0.6%            0.0                           1.1

    ---

                        Worldwide                 $21,082              $20,729           1.7%             1.7%            0.0                           2.0

    ---


                            (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:

                                        THIRD QUARTER 
     
     % Change



                                                                                                                        
      
                Adjusted
    ($ in Millions) (1)                          2020          2019 Reported         Operational       Currency
                                                  (1)          (1)        (2)            1,2                  (1)         Operational1,3

    ---

                        Consumer Health        $3,514        $3,469             1.3%               3.0            (1.7)                           3.1

    ---

                        Pharmaceutical         11,418        10,877             5.0%               4.6              0.4                            4.7

    ---

                        Medical Devices         6,150         6,383           (3.6)%             (3.9)             0.3                          (3.3)

    ---

                        Worldwide             $21,082       $20,729             1.7%               1.7              0.0                            2.0

    ---


                            (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 COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased by 3.1%*, inclusive of the net negative impact of COVID-19 primarily in international over-the-counter products. Sales growth was driven by U.S. growth in over-the-counter products including TYLENOL analgesics and digestive health products; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products; and wound care products, primarily BAND-AID® Brand Adhesive Bandages.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 4.7%* driven by DARZALEX (daratumumab), for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of 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, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.3%*. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. Results reflect market recovery versus the second quarter. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson's other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases available online in the Investors section of the Company's website at news releases.

        Regulatory                        THERMOCOOL SMARTTOUCH - Biosense Webster
         Approvals                         Receives FDA Approval for SF Ablation Catheter
                                           for the Treatment of Persistent Atrial
                                           Fibrillation(1)                                 (press release)



        SIMPONI ARIA (golimumab) -
         Approved by the U.S. Food and
         Drug Administration for Active
         Polyarticular Juvenile
         Idiopathic Arthritis and
         Extension of Its Active
         Psoriatic Arthritis Indication
         in Patients 2 Years of Age and
         Older                                         (press release)

    ---

        SPRAVATO (esketamine) - Janssen
         Announces U.S. FDA Approval of
         CIII Nasal Spray to Treat
         Depressive Symptoms in Adults
         with Major Depressive Disorder
         with Acute Suicidal Ideation or
         Behavior                                      (press release)

    ---

        DARZALEX (daratumumab) - U.S. FDA
         Approves New DARZALEX-Based
         Combination Regimen for Patients
         with Relapsed/Refractory
         Multiple Myeloma                              (press release)

    ---

                                          STELARA (ustekinumab) - U.S. Food and Drug
                                           Administration Approves Treatment of Pediatric
                                           Patients with Moderate to Severe Plaque
                                           Psoriasis                                       (press release)



        Regulatory                        UPTRAVI (selexipag) - Janssen Submits New Drug
         Submissions                       Application (NDA) to U.S. FDA for Injection for
                                           Intravenous Use to Treat Pulmonary Arterial
                                           Hypertension (PAH)                              (press release)



                                          DARZALEX FASPRO (daratumumab and hyaluronidase-
                                           fihj) - Janssen Submits Application Seeking
                                           U.S. FDA Approval for the Treatment of Patients
                                           with Light Chain (AL) Amyloidosis               (press release)




       Other                             Johnson & Johnson Announces European Commission
                                           Approval of Agreement to Supply 200 Million
                                           Doses of Janssen's COVID-19 Vaccine Candidate
                                           (1)                                             (press release)

    ---

        Johnson & Johnson Completes
         Acquisition of Momenta
         Pharmaceuticals, Inc.(1)                      (press release)

    ---

        Johnson & Johnson Initiates
         Pivotal Global Phase 3 Clinical
         Trial of Janssen's COVID-19
         Vaccine Candidate                             (press release)

    ---

        CERENOVUS Launches New Suite of
         Technologies to Advance Stroke
         Treatment                                     (press release)

    ---

        Johnson & Johnson Announces that
         Janssen's COVID-19
         Investigational Vaccine
         Candidate Prevents Severe
         Clinical Disease in Pre-
         clinical Studies                              (press release)

    ---

        Janssen to Discontinue Pimodivir
         Influenza Development Program                 (press release)

    ---

        Johnson & Johnson Announces
         Agreement with U.S. Government
         for 100 Million Doses of
         Investigational COVID-19
         Vaccine                                       (press release)

    ---

        U.S. FDA Grants Ethicon
         Breakthrough Device Designation
         for Monarch-enabled NeuWave
         Microwave Ablation Technology                 (press release)

    ---


                            (1) Subsequent to the quarter

FULL-YEAR 2020 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

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

                                                                            October 2020                      July 2020





                    
              ($ in Billions, except EPS)



       Adjusted Operational Sales1,2                                        0.5% - 1.5%                 (0.8%) - 1.0%


       Change vs. Prior Year

    ---


       Operational Sales(2)                                   
              $82.0 to $82.8      
              $81.0 to $82.5


       Change vs. Prior Year                                                0.0% - 1.0%                 (1.3%) - 0.5%

    ---


       Estimated Reported Sales(3)                            
              $81.2 to $82.0      
              $79.9 to $81.4


       Change vs. Prior Year                                              (1.0%) - 0.0%  
      (2.6%) - (0.8%)

    ---




       Adjusted Operational EPS (Diluted)2,4                  
              $7.95 to $8.05      
              $7.85 to $8.05


       Change vs. Prior Year                              
     (8.4%) - (7.3%)              
      (9.6%) - (7.3%)

    ---


        Adjusted EPS (Diluted)3,4                             
              $7.95 to $8.05      
              $7.75 to $7.95


       Change vs. Prior Year                              
     (8.4%) - (7.3%)             
      (10.7%) - (8.4%)

    ---


                            (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:
                             October 2020 = $1.14 Euro Average Rate: July
                             2020 = $1.12 (Illustrative purposes only)


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

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 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 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

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

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

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans, as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 29, 2019, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the Company's most recently filed Quarterly Report on Form 10-Q and the Company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.


       
                Johnson & Johnson and Subsidiaries

    ---


       
                Supplementary Sales Data





       (Unaudited; Dollars in Millions)                           
     
            THIRD QUARTER                         
              
             NINE MONTHS

    ---                                                 ---                                                                           ---

                                                                                                
      Percent Change                                                             
      Percent Change



                                                              2020       2019              
     Total                
       Operations                   
     Currency         2020        2019          
     Total     
     Operations           
     Currency

                                                                                                                                                                                                                                         ---


       
                Sales to customers by



       
                segment of business





       Consumer Health



           U.S.                                            $1,556      1,394                 11.6
                                                                                                                                                                                                   %
                                                                                               %                              11.6                                 $4,853       4,369              11.1                   11.1                  -



           International                                    1,958      2,075                (5.6)                             (2.7)                       (2.9)     5,582       5,962             (6.4)                 (2.2)             (4.2)


                                                             3,514      3,469                  1.3                                3.0                        (1.7)    10,435      10,331               1.0                    3.4              (2.4)

                                                                                                                                                                                                                                         ---




       Pharmaceutical



           U.S.                                             6,438      6,340                  1.5                                1.5                                 18,619      17,705               5.2                    5.2



           International                                    4,980      4,537                  9.7                                8.8                          0.9     14,685      13,945               5.3                    7.4              (2.1)


                                                            11,418     10,877                  5.0                                4.6                          0.4     33,304      31,650               5.2                    6.1              (0.9)

                                                                                                                                                                                                                                         ---




       Medical Devices



           U.S.                                             3,092      3,057                  1.2                                1.2                                  7,852       9,249            (15.1)                (15.1)



           International                                    3,058      3,326                (8.1)                             (8.5)                         0.4      8,518      10,082            (15.5)                (14.1)             (1.4)


                                                             6,150      6,383                (3.6)                             (3.9)                         0.3     16,370      19,331            (15.3)                (14.6)             (0.7)

                                                                                                                                                                                                                                         ---




       U.S.                                                11,086     10,791                  2.7                                2.7                                 31,324      31,323               0.0                    0.0



       International                                        9,996      9,938                  0.6                                0.6                          0.0     28,785      29,989             (4.0)                 (1.7)             (2.3)



       Worldwide                                          $21,082     20,729                  1.7                                1.7                          0.0    $60,109      61,312             (2.0)                 (0.8)             (1.2)

    ---                                                                                                                                                                                                                                  ---


                            Note: Percentages have been
                             calculated using actual, non-
                             rounded figures and, therefore,
                             may not recalculate precisely.


       
                Johnson & Johnson and Subsidiaries

    ---


       
                Supplementary Sales Data





       (Unaudited; Dollars in Millions)                           
     
            THIRD QUARTER                        
       
              NINE MONTHS

    ---                                                 ---                                                                              ---

                                                                                                 
      Percent Change                                                     
     Percent Change



                                                              2020       2019              
     Total                   
       Operations           
     Currency       2020       2019          
     Total     
     Operations            
     Currency

                                                                                                                                                                                                                                  ---


       
                Sales to customers by



       
                geographic area





       U.S.                                               $11,086     10,791                   2.7                                  2.7                      $31,324     31,323               0.0
                                                                                                %                                                                                          %                     0.0

    ---                                                                                                                                                                                                                           ---




       Europe                                               4,819      4,461                   8.0                                  4.6                  3.4   13,709     13,803             (0.7)                     0.1             (0.8)



       Western Hemisphere excluding U.S.                    1,296      1,488                (12.9)                               (1.2)              (11.7)   3,931      4,446            (11.6)                   (0.4)           (11.2)



       Asia-Pacific, Africa                                 3,881      3,989                 (2.7)                               (3.2)                 0.5   11,145     11,740             (5.1)                   (4.3)            (0.8)




       International                                        9,996      9,938                   0.6                                  0.6                  0.0   28,785     29,989             (4.0)                   (1.7)            (2.3)

    ---                                                                                                                                                                                                                           ---




       Worldwide                                          $21,082     20,729                   1.7                                  1.7                  0.0  $60,109     61,312             (2.0)
                                                                                                %
                                                                                                                                                                                           %                   (0.8)            (1.2)

    ---                                                                                                                                                                                                                           ---


                            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)                              
              
     THIRD QUARTER

    ---                             ---



                                                              2020                       2019 
      Percent



                                                                                  Percent                Percent       
     Increase


                                                            Amount                  to Sales    Amount     to Sales    
     (Decrease)


          Sales to customers                               $21,082                      100.0    $20,729         100.0              1.7


          Cost of products sold                              6,972                       33.1      6,867          33.1              1.5


          Gross Profit                                      14,110                       66.9     13,862          66.9              1.8

    ---

          Selling, marketing and
           administrative
           expenses                                          5,431                       25.8      5,374          26.0              1.1


          Research and
           development expense                               2,840                       13.5      2,599          12.5              9.3


          In-process research
           and development                                     138                        0.6


          Interest (income)
           expense, net                                         32                        0.1       (41)        (0.2)


          Other (income)
           expense, net                                      1,200                        5.7      4,214          20.3


          Restructuring                                         68                        0.3         69           0.4

    ---

          Earnings before
           provision for taxes
           on income                                         4,401                       20.9      1,647           7.9            167.2


          Provision for/
           (Benefit from) taxes
           on income                                           847                        4.0      (106)        (0.6)


          Net earnings                                      $3,554                       16.9     $1,753           8.5            102.7

    ---                                                                                                                         ---



          Net earnings per share
           (Diluted)                                         $1.33                                $0.66                         101.5




          Average shares
           outstanding (Diluted)                           2,669.3                              2,669.9




          Effective tax rate                                  19.2                                (6.4)

                                                                 %                                   %




          Adjusted earnings before provision for taxes and
           net earnings (1)


          Earnings before
           provision for taxes
           on income                                        $7,246                       34.4     $7,116          34.3              1.8


          Net earnings                                      $5,868                       27.8     $5,672          27.4              3.5


          Net earnings per share
           (Diluted)                                         $2.20                                $2.12                           3.8


          Effective tax rate                                  19.0                                 20.3

                                                                 %                                   %

    ---




                            (1)See Reconciliation of Non-GAAP
                             Financial Measures.


       
     Johnson & Johnson and Subsidiaries

    ---


       
     Condensed Consolidated Statement of Earnings




          (Unaudited; in
           Millions Except Per
           Share Figures)                               
              
     NINE MONTHS

    ---                             ---



                                                              2020                      2019 
      Percent



                                                                                 Percent                Percent       
     Increase


                                                            Amount                 to Sales    Amount     to Sales    
     (Decrease)


          Sales to customers                               $60,109                     100.0    $61,312         100.0            (2.0)


          Cost of products sold                             20,613                      34.3     20,422          33.3              0.9


          Gross Profit                                      39,496                      65.7     40,890          66.7            (3.4)

    ---

          Selling, marketing and
           administrative
           expenses                                         15,627                      26.0     16,139          26.3            (3.2)


          Research and
           development expense                               8,127                      13.5      8,123          13.3              0.0


          In-process research
           and development                                     144                       0.3        890           1.4


          Interest (income)
           expense, net                                         16                       0.0       (43)        (0.1)


          Other (income)
           expense, net                                        545                       0.9      2,509           4.1


          Restructuring                                        187                       0.3        162           0.3

    ---

          Earnings before
           provision for taxes
           on income                                        14,850                      24.7     13,110          21.4             13.3


          Provision for taxes on
           income                                            1,874                       3.1      2,001           3.3            (6.3)



          Net earnings                                     $12,976                      21.6    $11,109          18.1             16.8

    ---                                                                                                                        ---



          Net earnings per share
           (Diluted)                                         $4.86                               $4.13                          17.7




          Average shares
           outstanding (Diluted)                           2,670.8                             2,688.1




          Effective tax rate                                  12.6                                15.3

                                                                 %                                  %




          Adjusted earnings before provision for taxes and net
           earnings (1)


          Earnings before
           provision for taxes
           on income                                       $19,827                      33.0    $22,597          36.9           (12.3)


          Net earnings                                     $16,468                      27.4    $18,283          29.8            (9.9)


          Net earnings per share
           (Diluted)                                         $6.17                               $6.80                         (9.3)


          Effective tax rate                                  16.9                                19.1

                                                                 %                                  %

    ---


                            (1)See Reconciliation of Non-GAAP
                             Financial Measures.


       
                Johnson & Johnson and Subsidiaries



       
                Reconciliation of Non-GAAP Financial Measures




                                                                           Third Quarter             Nine Months Ended



       (Dollars in Millions Except Per Share Data)                   2020       2019         2020       2019

    ---                                                                                                ---


       Net Earnings, after tax- as reported                        $3,554     $1,753      $12,976    $11,109





       
                Pre-tax Adjustments



       Intangible Asset Amortization expense                        1,181      1,138        3,426      3,386



       Litigation expense, net                                      1,477      4,000        2,210      4,832



       IPR&D                                                          138                    144        890



       Restructuring related                                          130        128          363        360



       Acquisition and Integration related (1)                      (154)       107      (1,087)       229



       Unrealized (gains)/losses on securities                         32         89        (174)     (217)



       Medical Device Regulation(2)                                    38                     89          -



       Other                                                            3          7            6          7





       
                Tax Adjustments



       Tax impact on special item adjustments (3)                   (482)   (1,159)     (1,002)   (1,922)



       Tax legislation and related impacts                           (49)     (391)       (483)     (391)

                                                                                                       ---


       Adjusted Net Earnings, after tax                            $5,868     $5,672      $16,468    $18,283



       Average shares outstanding (Diluted)                       2,669.3    2,669.9      2,670.8    2,688.1



       Adjusted net earnings per share (Diluted)                    $2.20      $2.12        $6.17      $6.80



       Operational adjusted net earnings per share (Diluted)        $2.17                  $6.18



            
      
                Notes:



     
     (1)   Acquisition and integration related
                costs for 2020 primarily includes a
                Contingent Consideration reversal
                ($165M in third quarter and $1,148M
                in nine months) related to the
                timing of certain developmental
                milestones associated with the
                Auris Health acquisition.





     
     (2)   European Medical Device Regulation
                (MDR) costs represent one-time
                compliance costs for the Company's
                previously registered products. MDR
                is a replacement of the existing
                European Medical Devices Directive
                regulatory framework, and
                manufacturers of currently marketed
                medical devices are required to
                comply with EU MDR beginning in May
                2021. The Company considers the
                adoption of EU MDR to be a
                significant one-time regulatory
                change and is not indicative of on-
                going operations.  The Company has
                excluded only external third-party
                regulatory and consulting costs
                from its Medical Devices operating
                segments' measures of profit and
                loss used for making operating
                decisions and assessing
                performance.





     
     (3)   The tax impact related to special
                item adjustments reflects the
                current and deferred income taxes
                associated with the above pre-tax
                special items in arriving at
                adjusted earnings.


       
                Johnson & Johnson and Subsidiaries



       
                Reconciliation of Non-GAAP Financial Measure




                                                                        
              
             
                Adjusted Operational Sales Growth

                                                                                                      ---

                                                                           
              
            THIRD QUARTER 2020 ACTUAL vs. 2019 ACTUAL




                                                                                           
          
                 Segments

                                                                                                      ---



                                                                    
     
      Consumer Health                
              
                 Pharmaceutical   
     
     Medical Devices     Total





                      WW As Reported                                                  1.3%                                                  5.0%                 (3.6)%    1.7%

    ---


        U.S.                                                                        11.6%                                                  1.5%                   1.2%    2.7%



        International                                                              (5.6)%                                                  9.7%                 (8.1)%    0.6%




                      WW Currency                                                    (1.7)                                                   0.4                     0.3      0.0



        U.S.



        International                                                               (2.9)                                                   0.9                     0.4      0.0




                      WW Operational                                                  3.0%                                                  4.6%                 (3.9)%    1.7%

    ---


        U.S.                                                                        11.6%                                                  1.5%                   1.2%    2.7%



        International                                                              (2.7)%                                                  8.8%                 (8.5)%    0.6%




                     General Surgery


                                    Advanced Sterilization Products                                                                                                 0.5      0.2



        U.S.                                                                                                                                                       0.0      0.0



        International                                                                                                                                              0.9      0.4




                     Baby Care


                                    Baby Center                                        0.1                                                                                   0.0



        U.S.                                                                          0.4                                                                                   0.1



        International                                                                 0.0                                                                                   0.0




                     All Other Acquisitions and
                      Divestitures                                                     0.0                                                    0.1                     0.0      0.1



        U.S.                                                                          0.0                                                    0.0                     0.1      0.0



        International                                                               (0.1)                                                   0.3                     0.0      0.1




                     WW Adjusted Operational                                          3.1%                                                  4.7%                 (3.3)%    2.0%

    ===


        U.S.                                                                        12.0%                                                  1.5%                   1.3%    2.8%



        International                                                              (2.8)%                                                  9.2%                 (7.6)%    1.1%



                            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

                                                                                                     ---

                                                                             
              
          NINE MONTHS 2020 ACTUAL vs. 2019 ACTUAL




                                                                                           
         
                 Segments

                                                                                                     ---



                                                                    
     
      Consumer Health               
              
                 Pharmaceutical   
     
     Medical Devices      Total





                      WW As Reported                                                  1.0%                                                 5.2%                (15.3)%   (2.0)%

    ---


        U.S.                                                                        11.1%                                                 5.2%                (15.1)%     0.0%



        International                                                              (6.4)%                                                 5.3%                (15.5)%   (4.0)%




                      WW Currency                                                    (2.4)                                                (0.9)                  (0.7)    (1.2)



        U.S.



        International                                                               (4.2)                                                (2.1)                  (1.4)    (2.3)




                      WW Operational                                                  3.4%                                                 6.1%                (14.6)%   (0.8)%

    ---


        U.S.                                                                        11.1%                                                 5.2%                (15.1)%     0.0%



        International                                                              (2.2)%                                                 7.4%                (14.1)%   (1.7)%




                     Skin Health /Beauty


                                    Dr. Ci Labo -Japan                               (0.1)                                                                                  0.0



        U.S.                                                                          0.0                                                                                   0.0



        International                                                               (0.2)                                                                                  0.0




                     General Surgery


                                    Advanced Sterilization Products                                                                                                0.9       0.3



        U.S.                                                                                                                                                      0.8       0.3



        International                                                                                                                                             0.9       0.4




                     Baby Care


                                    Baby Center                                        0.2                                                                                   0.0



        U.S.                                                                          0.6                                                                                   0.1



        International                                                                 0.0                                                                                   0.0




                     All Other Acquisitions and
                      Divestitures                                                   (0.1)                                                  0.2                     0.0       0.1



        U.S.                                                                          0.0                                                   0.0                     0.0       0.0



        International                                                               (0.1)                                                  0.3                     0.0       0.1




                     WW Adjusted Operational                                          3.4%                                                 6.3%                (13.7)%   (0.4)%

    ===


        U.S.                                                                        11.7%                                                 5.2%                (14.3)%     0.4%



        International                                                              (2.6)%                                                 7.7%                (13.1)%   (1.3)%



                            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)



                                                                                            
          
                THIRD QUARTER                                                                
       
            NINE MONTHS


                                                                                          
         
            % Change                                                                                           
              
                % Change



                                                                                  2020              2019                                         Reported     Operational (1)     Currency                            2020                     2019     Reported     Operational (1)     Currency




              
                
                  CONSUMER HEALTH SEGMENT (2,3)

    ---


              
                OTC

    ---


              US                                                                 $601               477                                            26.0%               26.0%                                       $1,917                    1,468        30.6%               30.6%



              Intl                                                                541               621                                           -12.9%              -12.9%         0.0%                           1,722                    1,781        -3.3%               -0.6%        -2.7%




              WW                                                                1,142             1,098                                             4.0%                4.0%         0.0%                           3,639                    3,249        12.0%               13.5%        -1.5%



              
                SKIN HEALTH / BEAUTY(4)

    ---


              US                                                                  572               559                                             2.4%                2.4%                                        1,767                    1,810        -2.4%               -2.4%



              Intl                                                                577               592                                            -2.7%               -0.5%        -2.2%                           1,506                    1,633        -7.8%               -4.9%        -2.9%




              WW                                                                1,149             1,151                                            -0.2%                0.9%        -1.1%                           3,273                    3,443        -5.0%               -3.6%        -1.4%



              
                ORAL CARE

    ---


              US                                                                  164               156                                             5.5%                5.5%                                          510                      462        10.4%               10.4%



              Intl                                                                248               223                                            10.7%               14.4%        -3.7%                             694                      673         3.0%                7.9%        -4.9%




              WW                                                                  412               379                                             8.5%               10.8%        -2.3%                           1,204                    1,135         6.0%                8.9%        -2.9%



              
                BABY CARE

    ---


              US                                                                   91                91                                            -1.0%               -1.0%                                          279                      277         0.5%                0.5%



              Intl                                                                302               326                                            -7.2%               -0.6%        -6.6%                             831                      977       -14.9%               -8.6%        -6.3%




              WW                                                                  393               417                                            -5.9%               -0.7%        -5.2%                           1,110                    1,254       -11.5%               -6.6%        -4.9%



              
                WOMEN'S HEALTH

    ---


              US                                                                    3                 3                                            -6.9%               -6.9%                                           10                        9         7.3%                7.3%



              Intl                                                                227               252                                            -9.6%               -4.0%        -5.6%                             654                      724        -9.6%               -2.8%        -6.8%




              WW                                                                  230               255                                            -9.6%               -4.1%        -5.5%                             664                      733        -9.4%               -2.7%        -6.7%



              
                WOUND CARE / OTHER

    ---


              US                                                                  125               109                                            15.2%               15.2%                                          370                      343         8.0%                8.0%



              Intl                                                                 64                59                                             7.4%               10.3%        -2.9%                             175                      173         1.3%                5.4%        -4.1%




              WW                                                                  189               168                                            12.5%               13.5%        -1.0%                             545                      516         5.8%                7.2%        -1.4%





              
                
                  TOTAL CONSUMER HEALTH

    ---


              
                US                                                   1,556             1,394                                            11.6%               11.6%                                        4,853                    4,369        11.1%               11.1%



              
                Intl                                                 1,958             2,075                                            -5.6%               -2.7%        -2.9%                           5,582                    5,962        -6.4%               -2.2%        -4.2%




              
                WW                                                  $3,514             3,469                                             1.3%                3.0%        -1.7%                         $10,435                   10,331         1.0%                3.4%        -2.4%








              See footnotes at end of schedule








                                                                                                           REPORTED SALES vs. PRIOR PERIOD ($MM)                                                    REPORTED SALES vs. PRIOR PERIOD ($MM)



                                                                                            
          
                THIRD QUARTER                                                              
       
           NINE MONTHS


                                                                                         
         
            % Change                                                                                     
              
                % Change




              
                
                  PHARMACEUTICAL SEGMENT (2,5)           2020              2019                                         Reported     Operational (1)     Currency                            2020                     2019     Reported     Operational (1)     Currency

    ---




              
                
                  IMMUNOLOGY

    ---


              US                                                               $2,558             2,582                                            -0.9%               -0.9%                                       $7,330                    7,124         2.9%                2.9%



              Intl                                                              1,230             1,129                                             9.0%                8.4%         0.6%                           3,619                    3,304         9.5%               11.9%        -2.4%




              WW                                                                3,789             3,711                                             2.1%                1.9%         0.2%                          10,950                   10,428         5.0%                5.7%        -0.7%



              
                REMICADE

    ---


              US                                                                  634               749                                           -15.4%              -15.4%                                        1,852                    2,324       -20.3%              -20.3%



              US Exports (6)                                                       78                88                                           -11.3%              -11.3%                                          321                      226        42.1%               42.1%



              Intl                                                                209               299                                           -30.1%              -28.0%        -2.1%                             673                      795       -15.3%              -11.6%        -3.7%




              WW                                                                  921             1,136                                           -18.9%              -18.4%        -0.5%                           2,846                    3,345       -14.9%              -14.0%        -0.9%



              
                SIMPONI / SIMPONI ARIA

    ---


              US                                                                  312               313                                            -0.4%               -0.4%                                          840                      857        -2.0%               -2.0%



              Intl                                                                280               273                                             2.4%                2.2%         0.2%                             827                      816         1.3%                3.9%        -2.6%




              WW                                                                  592               586                                             0.9%                0.8%         0.1%                           1,667                    1,673        -0.4%                0.9%        -1.3%



              
                STELARA

    ---


              US                                                                1,313             1,212                                             8.4%                8.4%                                        3,668                    3,152        16.4%               16.4%



              Intl                                                                634               487                                            30.3%               28.1%         2.2%                           1,795                    1,509        19.0%               20.6%        -1.6%




              WW                                                                1,947             1,698                                            14.7%               14.0%         0.7%                           5,463                    4,661        17.2%               17.7%        -0.5%



              
                TREMFYA

    ---


              US                                                                  222               221                                             0.4%                0.4%                                          650                      565        15.0%               15.0%



              Intl                                                                105                69                                            54.4%               50.4%         4.0%                             316                      177        78.7%               79.1%        -0.4%




              WW                                                                  327               290                                            13.1%               12.2%         0.9%                             965                      742        30.2%               30.3%        -0.1%



              
                OTHER IMMUNOLOGY

    ---


              US



              Intl                                                                  3                 2                                            35.6%               44.6%        -9.0%                               9                        8        12.4%               19.1%        -6.7%




              WW                                                                    3                 2                                            35.6%               44.6%        -9.0%                               9                        8        12.4%               19.1%        -6.7%



              
                
                  INFECTIOUS DISEASES

    ---


              US                                                                  413               418                                            -1.1%               -1.1%                                        1,265                    1,162         8.9%                8.9%



              Intl                                                                451               421                                             7.0%                6.3%         0.7%                           1,397                    1,385         0.9%                3.8%        -2.9%




              WW                                                                  864               839                                             3.0%                2.6%         0.4%                           2,662                    2,547         4.5%                6.1%        -1.6%



              
                EDURANT / rilpivirine

    ---


              US                                                                   11                12                                           -12.0%              -12.0%                                           33                       36        -8.6%               -8.6%



              Intl                                                                226               206                                             9.3%                5.0%         4.3%                             684                      603        13.3%               13.8%        -0.5%




              WW                                                                  236               218                                             8.1%                4.1%         4.0%                             716                      639        12.1%               12.6%        -0.5%



              
                PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA

    ---


              US                                                                  379               373                                             1.5%                1.5%                                        1,154                    1,032        11.8%               11.8%



              Intl                                                                147               135                                             9.1%               12.1%        -3.0%                             461                      534       -13.7%               -8.8%        -4.9%




              WW                                                                  526               508                                             3.5%                4.3%        -0.8%                           1,615                    1,566         3.1%                4.8%        -1.7%



              
                OTHER INFECTIOUS DISEASES

    ---


              US                                                                   24                33                                           -26.6%              -26.6%                                           79                       94       -16.6%              -16.6%



              Intl                                                                 78                80                                            -2.3%               -0.4%        -1.9%                             252                      248         1.8%                6.3%        -4.5%




              WW                                                                  102               113                                            -9.4%               -8.1%        -1.3%                             331                      342        -3.2%                0.0%        -3.2%







                                                                                                           REPORTED SALES vs. PRIOR PERIOD ($MM)                                                    REPORTED SALES vs. PRIOR PERIOD ($MM)



                                                                                            
          
                THIRD QUARTER                                                              
       
           NINE MONTHS


                                                                                       
         
            % Change                                                                                     
              
                % Change



                                                                                  2020              2019                                         Reported     Operational (1)     Currency                            2020                     2019     Reported     Operational (1)     Currency




              
                
                  NEUROSCIENCE

    ---


              US                                                                  759               785                                            -3.5%               -3.5%                                        2,285                    2,172         5.2%                5.2%



              Intl                                                                846               810                                             4.5%                4.1%         0.4%                           2,565                    2,590        -1.0%                0.9%        -1.9%




              WW                                                                1,605             1,595                                             0.6%                0.4%         0.2%                           4,850                    4,762         1.8%                2.9%        -1.1%



              
                CONCERTA / Methylphenidate

    ---


              US                                                                   43                84                                           -49.2%              -49.2%                                          150                      196       -23.6%              -23.6%



              Intl                                                                107               109                                            -2.0%               -1.7%        -0.3%                             319                      348        -8.2%               -6.4%        -1.8%




              WW                                                                  149               193                                           -22.6%              -22.5%        -0.1%                             469                      544       -13.8%              -12.6%        -1.2%



              
                INVEGA SUSTENNA / XEPLION /
    INVEGA TRINZA / TREVICTA

    ---


              US                                                                  585               554                                             5.6%                5.6%                                        1,704                    1,543        10.5%               10.5%



              Intl                                                                341               297                                            14.9%               12.6%         2.3%                             983                      916         7.3%                8.6%        -1.3%




              WW                                                                  926               851                                             8.8%                8.0%         0.8%                           2,688                    2,459         9.3%                9.8%        -0.5%



              
                RISPERDAL CONSTA

    ---


              US                                                                   70                79                                           -11.0%              -11.0%                                          220                      237        -6.9%               -6.9%



              Intl                                                                 81                89                                            -7.8%               -8.9%         1.1%                             254                      292       -12.7%              -11.0%        -1.7%




              WW                                                                  152               167                                            -9.3%               -9.9%         0.6%                             475                      528       -10.1%               -9.2%        -0.9%



              
                OTHER NEUROSCIENCE

    ---


              US                                                                   60                68                                           -11.3%              -11.3%                                          210                      196         7.1%                7.1%



              Intl                                                                317               316                                             0.3%                1.7%        -1.4%                           1,008                    1,035        -2.6%               -0.1%        -2.5%




              WW                                                                  377               384                                            -1.8%               -0.6%        -1.2%                           1,218                    1,231        -1.1%                1.1%        -2.2%



              
                
                  ONCOLOGY

    ---


              US                                                                1,267             1,171                                             8.2%                8.2%                                        3,623                    3,146        15.2%               15.2%



              Intl                                                              1,862             1,590                                            17.1%               15.5%         1.6%                           5,310                    4,830         9.9%               11.8%        -1.9%




              WW                                                                3,129             2,761                                            13.3%               12.4%         0.9%                           8,933                    7,976        12.0%               13.1%        -1.1%



              
                DARZALEX

    ---


              US                                                                  585               402                                            46.0%               46.0%                                        1,540                    1,123        37.2%               37.2%



              Intl                                                                514               363                                            41.5%               40.5%         1.0%                           1,397                    1,045        33.7%               36.7%        -3.0%




              WW                                                                1,099               765                                            43.8%               43.4%         0.4%                           2,937                    2,168        35.5%               37.0%        -1.5%



              
                ERLEADA

    ---


              US                                                                  152                74    
              *                                  
     *                                                          407                      194 
     *          
     *



              Intl                                                                 55                12    
              *                                  
     *                 
     *                                      112                       22 
     *          
     *                 
     *




              WW                                                                  206                86    
              *                                  
     *                 
     *                                      519                      216 
     *          
     *                 
     *



              
                IMBRUVICA

    ---


              US                                                                  450               447                                             0.7%                0.7%                                        1,329                    1,163        14.2%               14.2%



              Intl                                                                581               475                                            22.5%               21.2%         1.3%                           1,682                    1,373        22.5%               25.2%        -2.7%




              WW                                                                1,031               921                                            11.9%               11.2%         0.7%                           3,011                    2,536        18.7%               20.2%        -1.5%



              
                VELCADE

    ---


              US



              Intl                                                                105               149                                           -30.1%              -30.8%         0.7%                             311                      636       -51.2%              -50.7%        -0.5%




              WW                                                                  105               149                                           -30.1%              -30.8%         0.7%                             311                      636       -51.2%              -50.7%        -0.5%



              
                ZYTIGA / abiraterone acetate

    ---


              US                                                                   58               233                                           -75.2%              -75.2%                                          284                      616       -53.9%              -53.9%



              Intl                                                                532               508                                             4.8%                2.2%         2.6%                           1,564                    1,502         4.1%                4.8%        -0.7%




              WW                                                                  590               741                                           -20.4%              -22.1%         1.7%                           1,848                    2,118       -12.7%              -12.3%        -0.4%



              
                OTHER ONCOLOGY

    ---


              US                                                                   21                17                                            35.3%               35.3%                                           63                       51        25.8%               25.8%



              Intl                                                                 76                83                                            -8.8%              -10.1%         1.3%                             244                      252        -3.1%               -1.1%        -2.0%




              WW                                                                   98               100                                            -1.7%               -2.8%         1.1%                             308                      303         1.7%                3.3%        -1.6%



              
                
                  PULMONARY HYPERTENSION

    ---


              US                                                                  510               427                                            19.4%               19.4%                                        1,541                    1,296        18.9%               18.9%



              Intl                                                                239               227                                             5.2%                3.7%         1.5%                             742                      704         5.3%                6.5%        -1.2%




              WW                                                                  749               654                                            14.5%               13.9%         0.6%                           2,283                    2,000        14.1%               14.6%        -0.5%



              
                OPSUMIT

    ---


              US                                                                  244               206                                            18.1%               18.1%                                          729                      581        25.3%               25.3%



              Intl                                                                148               140                                             5.5%                3.9%         1.6%                             458                      419         9.3%               10.7%        -1.4%




              WW                                                                  392               347                                            13.0%               12.3%         0.7%                           1,187                    1,001        18.6%               19.2%        -0.6%



              
                UPTRAVI

    ---


              US                                                                  226               185                                            22.4%               22.4%                                          692                      536        29.1%               29.1%



              Intl                                                                 34                25                                            32.3%               28.9%         3.4%                             100                       75        33.1%               34.6%        -1.5%




              WW                                                                  260               210                                            23.6%               23.2%         0.4%                             792                      611        29.6%               29.8%        -0.2%



              
                OTHER PULMONARY HYPERTENSION

    ---


              US                                                                   40                36                                            11.5%               11.5%                                          121                      179       -32.3%              -32.3%



              Intl                                                                 57                61                                            -6.7%               -7.4%         0.7%                             183                      210       -12.7%              -11.9%        -0.8%




              WW                                                                   97                96                                             0.1%               -0.3%         0.4%                             304                      388       -21.7%              -21.3%        -0.4%



              
                
                  CARDIOVASCULAR / METABOLISM / OTHER

    ---


              US                                                                  931               955                                            -2.6%               -2.6%                                        2,574                    2,804        -8.2%               -8.2%



              Intl                                                                351               360                                            -2.7%               -2.4%        -0.3%                           1,052                    1,131        -7.1%               -4.6%        -2.5%




              WW                                                                1,281             1,316                                            -2.6%               -2.5%        -0.1%                           3,625                    3,936        -7.9%               -7.2%        -0.7%



              
                XARELTO

    ---


              US                                                                  630               613                                             2.9%                2.9%                                        1,716                    1,704         0.7%                0.7%



              Intl




              WW                                                                  630               613                                             2.9%                2.9%                                        1,716                    1,704         0.7%                0.7%



              
                INVOKANA / INVOKAMET

    ---


              US                                                                  156               125                                            24.7%               24.7%                                          405                      411        -1.6%               -1.6%



              Intl                                                                 68                55                                            24.7%               25.2%        -0.5%                             173                      147        18.0%               20.7%        -2.7%




              WW                                                                  224               179                                            24.7%               24.9%        -0.2%                             578                      558         3.6%                4.3%        -0.7%



              
                PROCRIT / EPREX

    ---


              US                                                                   69               126                                           -45.4%              -45.4%                                          215                      387       -44.5%              -44.5%



              Intl                                                                 63                72                                           -12.2%              -13.0%         0.8%                             208                      220        -5.5%               -4.3%        -1.2%




              WW                                                                  132               198                                           -33.3%              -33.6%         0.3%                             423                      607       -30.4%              -29.9%        -0.5%



              
                OTHER

    ---


              US                                                                   75                91                                           -17.9%              -17.9%                                          238                      302       -21.4%              -21.4%



              Intl                                                                219               234                                            -6.2%               -5.5%        -0.7%                             670                      765       -12.3%               -9.5%        -2.8%




              WW                                                                  294               325                                            -9.5%               -9.0%        -0.5%                             908                    1,067       -14.9%              -12.9%        -2.0%



              
                
                  TOTAL PHARMACEUTICAL

    ---


              
                US                                                   6,438             6,340                                             1.5%                1.5%                                       18,619                   17,705         5.2%                5.2%



              
                Intl                                                 4,980             4,537                                             9.7%                8.8%         0.9%                          14,685                   13,945         5.3%                7.4%        -2.1%




              
                WW                                                 $11,418            10,877                                             5.0%                4.6%         0.4%                         $33,304                   31,650         5.2%                6.1%        -0.9%






              See footnotes at end of schedule




                                                                                                           REPORTED SALES vs. PRIOR PERIOD ($MM)                                                    REPORTED SALES vs. PRIOR PERIOD ($MM)



                                                                                            
          
                THIRD QUARTER                                                              
       
           NINE MONTHS


                                                                                       
         
            % Change                                                                                     
              
                % Change




              
                
                  MEDICAL DEVICES SEGMENT (2,5)          2020              2019                                         Reported     Operational (1)     Currency                            2020                     2019     Reported     Operational (1)     Currency

    ---




              
                INTERVENTIONAL SOLUTIONS

    ---


              US                                                                  399               357                                            11.8%               11.8%                                        1,019                    1,066        -4.4%               -4.4%



              Intl                                                                437               382                                            14.0%               12.9%         1.1%                           1,134                    1,156        -2.0%               -1.0%        -1.0%




              WW                                                                  836               741                                            12.9%               12.4%         0.5%                           2,153                    2,223        -3.1%               -2.7%        -0.4%



              
                
                  ORTHOPAEDICS

    ---


              US                                                                1,308             1,301                                             0.6%                0.6%                                        3,427                    3,950       -13.2%              -13.2%



              Intl                                                                774               837                                            -7.5%               -9.0%         1.5%                           2,145                    2,616       -18.0%              -16.9%        -1.1%




              WW                                                                2,083             2,138                                            -2.6%               -3.1%         0.5%                           5,572                    6,566       -15.1%              -14.7%        -0.4%



              
                HIPS

    ---


              US                                                                  221               204                                             8.7%                8.7%                                          564                      633       -10.9%              -10.9%



              Intl                                                                124               133                                            -7.2%               -8.4%         1.2%                             344                      428       -19.8%              -18.3%        -1.5%




              WW                                                                  345               336                                             2.4%                1.9%         0.5%                             908                    1,061       -14.5%              -13.9%        -0.6%



              
                KNEES

    ---


              US                                                                  205               209                                            -1.9%               -1.9%                                          527                      650       -19.0%              -19.0%



              Intl                                                                102               136                                           -24.8%              -26.4%         1.6%                             298                      435       -31.5%              -30.7%        -0.8%




              WW                                                                  308               344                                           -10.9%              -11.6%         0.7%                             825                    1,085       -24.0%              -23.7%        -0.3%



              
                TRAUMA

    ---


              US                                                                  433               415                                             4.2%                4.2%                                        1,194                    1,239        -3.6%               -3.6%



              Intl                                                                253               262                                            -3.4%               -4.7%         1.3%                             698                      795       -12.2%              -10.9%        -1.3%




              WW                                                                  685               677                                             1.3%                0.7%         0.6%                           1,892                    2,034        -7.0%               -6.5%        -0.5%



              
                SPINE, SPORTS & OTHER(7)

    ---


              US                                                                  449               472                                            -4.9%               -4.9%                                        1,142                    1,427       -20.0%              -20.0%



              Intl                                                                295               306                                            -3.4%               -5.0%         1.6%                             805                      957       -15.8%              -14.9%        -0.9%




              WW                                                                  745               778                                            -4.3%               -5.0%         0.7%                           1,947                    2,384       -18.3%              -18.0%        -0.3%



              
                
                  SURGERY

    ---


              US                                                                  913               940                                            -3.0%               -3.0%                                        2,247                    2,867       -21.7%              -21.7%



              Intl                                                              1,239             1,371                                            -9.6%               -9.5%        -0.1%                           3,556                    4,192       -15.2%              -13.1%        -2.1%




              WW                                                                2,152             2,311                                            -6.9%               -6.9%         0.0%                           5,803                    7,059       -17.8%              -16.6%        -1.2%



              
                ADVANCED

    ---


              US                                                                  421               409                                             3.0%                3.0%                                        1,079                    1,209       -10.7%              -10.7%



              Intl                                                                579               602                                            -3.9%               -4.1%         0.2%                           1,644                    1,811        -9.2%               -7.3%        -1.9%




              WW                                                                1,000             1,010                                            -1.1%               -1.2%         0.1%                           2,723                    3,019        -9.8%               -8.7%        -1.1%



              
                GENERAL

    ---


              US                                                                  492               531                                            -7.6%               -7.6%                                        1,168                    1,658       -29.6%              -29.6%



              Intl                                                                660               769                                           -14.1%              -13.8%        -0.3%                           1,912                    2,381       -19.7%              -17.5%        -2.2%




              WW                                                                1,152             1,301                                           -11.4%              -11.3%        -0.1%                           3,080                    4,040       -23.8%              -22.5%        -1.3%



              
                
                  VISION

    ---


              US                                                                  473               459                                             3.1%                3.1%                                        1,160                    1,366       -15.1%              -15.1%



              Intl                                                                608               734                                           -17.2%              -17.4%         0.2%                           1,683                    2,117       -20.5%              -19.6%        -0.9%




              WW                                                                1,081             1,193                                            -9.4%               -9.5%         0.1%                           2,843                    3,483       -18.4%              -17.8%        -0.6%



              
                CONTACT LENSES / OTHER

    ---


              US                                                                  375               339                                            10.9%               10.9%                                          924                      993        -6.9%               -6.9%



              Intl                                                                455               555                                           -18.1%              -18.2%         0.1%                           1,274                    1,566       -18.7%              -17.8%        -0.9%




              WW                                                                  830               893                                            -7.1%               -7.2%         0.1%                           2,198                    2,559       -14.1%              -13.6%        -0.5%



              
                SURGICAL

    ---


              US                                                                   98               120                                           -18.9%              -18.9%                                          236                      373       -36.8%              -36.8%



              Intl                                                                153               180                                           -14.6%              -14.8%         0.2%                             409                      551       -25.7%              -24.8%        -0.9%




              WW                                                                  251               299                                           -16.3%              -16.4%         0.1%                             645                      923       -30.2%              -29.6%        -0.6%





              
                
                  TOTAL MEDICAL DEVICES

    ---


              
                US                                                   3,092             3,057                                             1.2%                1.2%                                        7,852                    9,249       -15.1%              -15.1%



              
                Intl                                                 3,058             3,326                                            -8.1%               -8.5%         0.4%                           8,518                   10,082       -15.5%              -14.1%        -1.4%




              
                WW                                                  $6,150             6,383                                            -3.6%               -3.9%         0.3%                         $16,370                   19,331       -15.3%              -14.6%        -0.7%






                   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                                                                       (6) Reported as U.S. sales



     (1) Operational growth excludes the effect of translational currency                                                   (7) Previously referred to
                                                                                                                              as Spine & Other



     (2) Unaudited



     (3) Previously referred to as Consumer



     (4) Previously referred to as Beauty



     (5) Certain prior year amounts have been reclassified to conform to current year product disclosures

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SOURCE Johnson & Johnson