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19. Selected Quarterly Financial Data (unaudited)
Selected unaudited quarterly financial data for the years 2014 and 2013 are summarized below:
2014 2013
(Dollars in Millions Except Per Share
Data)
First
Quarter(1)
Second
Quarter(2)
Third
Quarter(3)
Fourth
Quarter(4)
First
Quarter(5)
Second
Quarter(6)
Third
Quarter(7)
Fourth
Quarter(8)
Segment sales to customers
Consumer $3,557 3,744 3,589 3,606 3,675 3,658 3,611 3,753
Pharmaceutical 7,498 8,509 8,307 7,999 6,768 7,025 7,036 7,296
Medical Devices 7,060 7,242 6,571 6,649 7,062 7,194 6,928 7,306
Total sales 18,115 19,495 18,467 18,254 17,505 17,877 17,575 18,355
Gross profit 12,660 13,456 13,068 12,401 11,951 12,388 12,231 12,400
Earnings before provision for taxes on
income 5,424 5,626 6,810 2,703 4,261 4,793 3,667 2,750
Net earnings attributable to Johnson &
Johnson 4,727 4,326 4,749 2,521 3,497 3,833 2,982 3,519
Basic net earnings per share attributable
to Johnson & Johnson $1.67 1.53 1.69 0.90 1.25 1.36 1.06 1.25
Diluted net earnings per share
attributable to Johnson & Johnson $1.64 1.51 1.66 0.89 1.22 1.33 1.04 1.23
(1) The first quarter of 2014 includes Synthes integration costs of $84 million after-tax ($118 million before-tax) and a $398 million tax
benefit associated with Conor Medsystems.
(2) The second quarter of 2014 includes litigation expense of $342 million after-tax ($276 million before-tax) and Synthes integration
costs of $104 million after-tax ($144 million before-tax).
(3) The third quarter of 2014 includes an additional year of the Branded Prescription Drug Fee of $220 million after and before tax,
litigation expense of $231 million after-tax ($285 million before-tax), Synthes integration costs of $130 million after-tax ($167 million
before-tax) and $111 million after-tax ($126 million before-tax) for costs associated with the DePuy ASR™ Hip program. Additionally,
the fiscal third quarter of 2014 includes a net gain of $1.1 billion after-tax ($1.9 billion before-tax) for the divestiture of the Ortho-
Clinical Diagnostics business.
(4) The fourth quarter of 2014 includes litigation expense, primarily related to product liability and patent litigation of $652 million after-
tax ($692 million before-tax), Synthes integration costs of $237 million after-tax ($325 million before-tax) and $115 million after-tax
($156 million before-tax) from impairment of in-process research and development.
(5) The first quarter of 2013 includes Synthes integration/transaction costs of $183 million after-tax ($258 million before-tax) and net
litigation expense of $391 million after-tax ($529 million before-tax).
(6) The second quarter of 2013 includes net litigation expense of $308 million after-tax ($375 million before-tax) and Synthes
integration/transaction costs of $87 million after-tax ($122 million before-tax).
(7) The third quarter of 2013 includes net litigation expense of $720 million after-tax ($872 million before-tax), Synthes integration/
transaction costs of $103 million after-tax ($122 million before-tax) and $126 million after-tax ($178 million before-tax) from
impairment of in-process research and development.
(8) The fourth quarter of 2013 includes net litigation expense of $227 million after-tax ($506 million before-tax), Synthes integration/
transaction costs $110 million after-tax ($181 million before-tax), $294 million after-tax ($338 million before-tax) from impairment of
in-process research and development and $118 million after-tax ($134 million before-tax) for costs associated with the DePuy ASR™
Hip program and a $707 million tax benefit associated with Scios Inc.
20. Business Combinations and Divestitures
Certain businesses were acquired for $2,129 million in cash and $38 million of liabilities assumed during 2014. These
acquisitions were accounted for using the acquisition method and, accordingly, results of operations have been included
in the financial statements from their respective dates of acquisition.
The 2014 acquisitions included: Covagen AG, a privately-held, biopharmaceutical company specializing in the
development of multispecific protein therapeutics through the FynomAb®technology platform; Alios BioPharma, Inc., a
privately-held, clinical stage biopharmaceutical company focused on developing therapies for viral diseases; and the
ORSL™electrolyte ready-to-drink brand from Jagdale Industries Ltd. The excess of purchase price over the estimated fair
value of tangible assets acquired amounted to $2,069 million and has been assigned to identifiable intangible assets,
50 •Johnson & Johnson 2014 Annual Report