Johnson and Johnson 2006 Annual Report Download - page 77

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NOTES TO CONSOLIDATED FINANCIAL ST A TEMENTS75
21. Selected Quarterly Financial Data (unaudited)
Selected unaudited quarterly financial data for the years 2006 and 2005 are summarized below:
2006 2005
_________________________________________________ _________________________________________________
FirstSecond Third Fourth FirstSecond Third Fourth
(Dollars in Millions Except Per Share Data) Quarter(1)Quarter(2)Quarter(3)Quarter(4) Quarter Quarter(5) Quarter Quarter(6)
Segment sales to customers
Consumer $2,355 2,398 2,456 2,565 2,280 2,278 2,231 2,307
Pharmaceutical 5,626 5,810 5,881 5,950 5,755 5,628 5,457 5,482
Med Devices & Diagnostics 5,011 5,155 4,950 5,167 4,797 4,856 4,622 4,821
Total sales $12,992 13,363 13,287 13,682 12,832 12,762 12,310 12,610
Gross profit 9,380 9,575 9,637 9,675 9,336 9,240 8,956 8,972
Earnings before provision
for taxes on income 4,615 3,603 3,661 2,708 3,927 3,266 3,420 2,503
Net earnings 3,305 2,820 2,760 2,168 2,839 2,588 2,538 2,095
Basic net earnings per share$1.11 0.96 0.95 0.75 0.96 0.87 0.85 0.70
Diluted net earnings per share$1.10 0.95 0.94 0.74 0.94 0.86 0.85 0.70
(1)The first quarter of 2006 includes an after-tax gain of $368 million for the Guidant acquisition termination fee and an after-tax charge of $29 million for In-Process Research and
Development (IPR&D).
(2) The second quarter of 2006 includes an after-tax charge of $87 million for IPR&D.
(3) The third quarter of 2006 includes an after-tax charge of $115 million for IPR&D.
(4) The fourth quarter of 2006 includes an after-tax charge of $217 million for IPR&D.
(5)The second quarter of 2005 includes an after-tax charge of $353 million for IPR&D and a $225 million tax benefit, due to the reversal of a tax liability related to a technical
correction associated with the American Jobs Creation Act of 2004.
(6) The fourth quarter of 2005 includes an after-tax charge of $6 million for IPR&D. Shifts in sales to lower tax jurisdictions and expenditures to higher tax jurisdictions had a more
significant impact on the fiscal fourth quarter’s tax rate.
22. Subsequent Events
During the fiscal first quarter of 2007 the Company completed the acquisition of Conor Medsystems, Inc., a cardiovascular device
company, for $1.4 billion in cash.
During the fiscal first quarter of 2007, in accordance with the regulatory approval for the acquisition of the Consumer Healthcare
business of Pfizer Inc., the Company announced the closing of the divestiture of KAOPECTATE®, UNISOM®, CORTIZONE®,
BALMEX®and ACT®products to Chattem, Inc. for $410 million in cash.