Johnson and Johnson 2006 Annual Report Download - page 82

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This table is provided to reconcile certain financial disclosures in the Letter to Shareholders, page 1.
’06 vs. ’05 ’05 vs. ’04
(Dollars in Millions Except Per Share Data) 2006 2005 2004 % Change% Change
Net Earnings —as reported $11,053 10,060 8,180 9.9% 23.0
In-process research & development (IPR&D) charges 448 359 12
Guidant acquisition agreement termination fee (368) — —
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) —
Net Earnings —as adjusted $11,133 10,194 8,981 9.2% 13.5
Diluted net earnings per share — as reported $3.73 3.35 2.74 11.3% 22.3
In-process research & development charges 0.15 0.12 —
Guidant acquisition agreement termination fee (0.12) — —
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) —
Diluted net earnings per share — as adjusted $3.76 3.39 3.00 10.9% 13.0
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 charges, the Guidant acquisition agreement termination fee, 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. These non-GAAP financial measures should not be considered replacements for, and should
be read together with, the most comparable GAAP financial measures.
80 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Reconciliation of Non-GAAP Financial Measures