Johnson and Johnson 2013 Annual Report Download - page 13

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In order to remain a leader in health care the Company strives to maintain a purpose-driven organization and is committed
to developing global business leaders who can achieve these growth objectives. Businesses are managed for the long-
term in order to sustain market leadership positions and enable growth, which provides an enduring source of value to our
shareholders.
Our Credo unifies all Johnson & Johnson employees in achieving these objectives, and provides a common set of values
that serve as the foundation of the Company’s responsibilities to its customers, employees, communities and shareholders.
The Company believes that these basic principles and growth drivers, along with its overall mission of improving the quality
of life for people across the globe, will enable Johnson & Johnson to continue to be a leader in the health care industry.
Results of Operations
Analysis of Consolidated Sales
In 2013, worldwide sales increased 6.1% to $71.3 billion, compared to increases of 3.4% in 2012 and 5.6% in 2011.
These sales changes consisted of the following:
Sales increase/(decrease) due to: 2013 2012 2011
Volume 7.6% 5.7 3.1
Price 0.1 0.4 (0.3)
Currency (1.6) (2.7) 2.8
Total 6.1% 3.4 5.6
Sales by U.S. companies were $31.9 billion in 2013, $29.8 billion in 2012 and $28.9 billion in 2011. This represents
increases of 7.0% in 2013 and 3.2% in 2012, and a decrease of 1.8% in 2011. Sales by international companies were
$39.4 billion in 2013, $37.4 billion in 2012 and $36.1 billion in 2011. This represents increases of 5.4% in 2013, 3.5% in
2012 and 12.4% in 2011. The acquisition of Synthes, Inc., net of the related divestiture, increased both total worldwide
sales growth and operational growth by 2.5% and 3.1% in 2013 and 2012, respectively.
The five-year compound annual growth rates for worldwide, U.S. and international sales were 2.3%, (0.2)% and 4.6%,
respectively. The ten-year compound annual growth rates for worldwide, U.S. and international sales were 5.5%, 2.4% and
9.0%, respectively.
Sales in Europe achieved growth of 9.8% as compared to the prior year, including operational growth of 7.7% and a
positive currency impact of 2.1%. Sales in the Western Hemisphere (excluding the U.S.) achieved growth of 3.0% as
compared to the prior year, including operational growth of 8.9% and a negative currency impact of 5.9%. Sales in the
Asia-Pacific, Africa region achieved growth of 1.1% as compared to the prior year, including operational growth of 8.6%
and a negative currency impact of 7.5%.
In 2013, 2012 and 2011, the Company did not have a customer that represented 10% or more of total consolidated
revenues.
U.S. Health Care Reform
Under the provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation
Act of 2010, beginning in 2013, the Company began paying a tax deductible 2.3% excise tax imposed on the sale of
certain medical devices. The 2013 full-year impact of the excise tax was approximately $200 million.
Johnson & Johnson 2013 Annual Report •3