Johnson and Johnson 2015 Annual Report Download - page 17

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Item 1A. Risk Factors
The Company faces a number of uncertainties and risks that are difficult to predict and many of which are outside of the
Company’s control. In addition to the other information in this Report and the Company’s other filings with the SEC,
investors should consider carefully the factors set forth in Exhibit 99 to this Report. Investors should realize that if known or
unknown risks or uncertainties materialize, the Company’s business, results of operations or financial condition could be
adversely affected.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
The Company’s subsidiaries operate 121 manufacturing facilities occupying approximately 21.3 million square feet of floor
space. The manufacturing facilities are used by the industry segments of the Company’s business approximately as
follows:
Segment
Square Feet
(in thousands)
Consumer 6,942
Pharmaceutical 7,435
Medical Devices 6,919
Worldwide Total 21,296
Within the United States, eight facilities are used by the Consumer segment, eight by the Pharmaceutical segment and 20
by the Medical Devices segment. Outside of the United States, 30 facilities are used by the Consumer segment, 18 by the
Pharmaceutical segment and 37 by the Medical Devices segment.
The locations of the manufacturing facilities by major geographic areas of the world are as follows:
Geographic Area Number of Facilities
Square Feet
(in thousands)
United States 36 5,808
Europe 38 7,917
Western Hemisphere, excluding U.S. 14 2,815
Africa, Asia and Pacific 33 4,756
Worldwide Total 121 21,296
In addition to the manufacturing facilities discussed above, the Company maintains numerous office and warehouse
facilities throughout the world. Research facilities are also discussed in Item 1 of this Report under “Business – Research
and Development.”
The Company’s subsidiaries generally seek to own their manufacturing facilities, although some, principally in non-U.S.
locations, are leased. Office and warehouse facilities are often leased. The Company also engages contract
manufacturers.
The Company is committed to maintaining all of its properties in good operating condition and repair, and the facilities are
well utilized.
McNEIL-PPC, Inc. (now Johnson & Johnson Consumer Inc.) (McNEIL-PPC) continues to operate under a consent decree,
signed in 2011 with the FDA, which governs certain McNeil Consumer Healthcare manufacturing operations, and requires
McNEIL-PPC to remediate the facilities it operates in Lancaster, Pennsylvania, Fort Washington, Pennsylvania, and Las
Piedras, Puerto Rico (the “Consent Decree”). The Fort Washington facility was voluntarily shut down in April 2010, and
subsequently many products were transferred to other manufacturing sites and successfully reintroduced to the market.
After McNEIL-PPC successfully completed all requirements contained in the Consent Decree Workplans for the
Johnson & Johnson 2015 Annual Report •5