Johnson and Johnson 2014 Annual Report Download - page 28

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The Company also operates in an environment increasingly hostile to intellectual property rights. Firms have filed
Abbreviated New Drug Applications or Biosimilar Biological Product Applications with the FDA or otherwise challenged
the coverage and/or validity of the Company’s patents, seeking to market generic or biosimilar forms of many of the
Company’s key pharmaceutical products prior to expiration of the applicable patents covering those products. In the event
the Company is not successful in defending the patent claims challenged in the resulting lawsuits, generic or biosimilar
versions of the products at issue will be introduced to the market, resulting in the potential for substantial market share and
revenue losses for those products, and which may result in a non-cash impairment charge in any associated intangible
asset. For further information, see the discussion on “REMICADE®Related Cases” and “Litigation Against Filers of
Abbreviated New Drug Applications” in Note 21 to the Consolidated Financial Statements.
Legal Proceedings
Johnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability,
intellectual property, commercial and other matters; governmental investigations; and other legal proceedings that arise
from time to time in the ordinary course of business.
The Company records accruals for such contingencies when it is probable that a liability will be incurred and the amount
of the loss can be reasonably estimated. The Company has accrued for certain litigation matters and continues to monitor
each related legal issue and adjust accruals for new information and further developments in accordance with Accounting
Standards Codification (ASC) 450-20-25. For these and other litigation and regulatory matters currently disclosed for
which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or
range of loss beyond the amounts already accrued. These matters can be affected by various factors, including whether
damages sought in the proceedings are unsubstantiated or indeterminate; scientific and legal discovery has not
commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant
facts in dispute; or there are numerous parties involved.
In the Company’s opinion, based on its examination of these matters, its experience to date and discussions with counsel,
the ultimate outcome of legal proceedings, net of liabilities accrued in the Company’s balance sheet, is not expected to
have a material adverse effect on the Company’s financial position. However, the resolution in any reporting period of one
or more of these matters, either alone or in the aggregate, may have a material adverse effect on the Company’s results of
operations and cash flows for that period.
See Note 21 to the Consolidated Financial Statements for further information regarding legal proceedings.
Common Stock Market Prices
The Company’s Common Stock is listed on the New York Stock Exchange under the symbol JNJ. As of February 17,
2015, there were 162,062 record holders of Common Stock of the Company. The composite market price ranges for
Johnson & Johnson Common Stock during 2014 and 2013 were:
2014 2013
High Low High Low
First quarter $98.47 86.09 81.59 69.18
Second quarter 105.97 96.05 89.99 80.31
Third quarter 108.77 98.80 94.42 85.50
Fourth quarter 109.49 95.10 95.99 85.50
Year-end close $105.06 92.35
18 •Johnson & Johnson 2014 Annual Report