Johnson and Johnson 2005 Annual Report Download - page 69

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RECONCILIATION OF NON-GAAP MEASURES PAGE 67
RECONCILIATION OF NON-GAAP MEASURES JOHNSON & JOHNSON AND SUBSIDIARIES
This table is provided to reconcile certain financial disclosures in the Letter to Shareholders, page 1.
The Company believes investors gain additional perspective of underlying business trends and results by providing a
measure of net earnings and diluted net earnings per share that excludes IPR&D and the tax cost associated with funds
repatriated under, and the tax gain associated with a technical correction made to, the AJCA, in order to evaluate ongoing
business operations.
’05 vs.’04 ’04 vs.’03
(Dollars in Millions Except Per Share Data) 2005 2004 2003 % Change % Change
Net Earnings — as reported $10,411 8,509 7,197 22.4% 18.2%
American Jobs Creation Act of 2004 (AJCA):
Tax cost associated with repatriation of undistributed
international earnings — 789 —
Tax gain associated with a technical correction (225) — —
In-process research & development (IPR&D) 359 12 915
Net Earnings — as adjusted $10,545 9,310 8,112 13.3% 14.8%
Diluted net earnings per share — as reported $ 3.46 2.84 2.40 21.8% 18.3%
American Jobs Creation Act of 2004:
Tax cost associated with repatriation of undistributed
international earnings — 0.26 —
Tax gain associated with a technical correction (0.08) — —
In-process research & development 0.12 — 0.30
Diluted net earnings per share — as adjusted $ 3.50 3.10 2.70 12.9% 14.8%