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19. Selected Quarterly Financial Data (unaudited)
Selected unaudited quarterly financial data for the years 2013 and 2012 are summarized below:
2013 2012
(Dollars in Millions Except Per Share
Data)
First
Quarter(1)
Second
Quarter(2)
Third
Quarter(3)
Fourth
Quarter(4)
First
Quarter(5)
Second
Quarter(6)
Third
Quarter(7)
Fourth
Quarter(8)
Segment sales to customers
Consumer $3,675 3,658 3,611 3,753 3,595 3,619 3,581 3,652
Pharmaceutical 6,768 7,025 7,036 7,296 6,133 6,291 6,402 6,525
Med Devices & Diagnostics 7,062 7,194 6,928 7,306 6,411 6,565 7,069 7,381
Total sales 17,505 17,877 17,575 18,355 16,139 16,475 17,052 17,558
Gross profit 11,951 12,388 12,231 12,400 11,224 11,332 11,455 11,555
Earnings before provision for taxes on
income 4,261 4,793 3,667 2,750 5,045 2,035 3,595 3,100
Net earnings attributable to Johnson &
Johnson 3,497 3,833 2,982 3,519 3,910 1,408 2,968 2,567
Basic net earnings per share
attributable to Johnson & Johnson $1.25 1.36 1.06 1.25 1.43 0.51 1.08 0.93
Diluted net earnings per share
attributable to Johnson & Johnson $1.22 1.33 1.04 1.23 1.41 0.50 1.05 0.91
(1) The first quarter of 2013 includes after-tax charges of $183 million from Synthes integration/transaction costs, $391 million from net
litigation expense and $42 million from impairment of in-process research and development, and $30 million associated with the
DePuy ASR™ Hip program.
(2) The second quarter of 2013 includes after-tax charges of $308 million from net litigation expense, $87 million from Synthes
integration/transaction costs and $61 million associated with the DePuy ASR™ Hip program.
(3) The third quarter of 2013 includes after-tax charges of $720 million from net litigation expense, $103 million from Synthes
integration/transaction costs, $126 million from impairment of in-process research and development and $31 million associated with
the DePuy ASR™ Hip program.
(4) The fourth quarter of 2013 includes after-tax charges of $227 million from net litigation expense, $110 million from Synthes
integration/transaction costs, $294 million from impairment of in-process research and development, $118 million associated with
the DePuy ASR™ Hip program and a $707 million tax benefit associated with Scios Inc.
(5) The first quarter of 2012 includes an after-tax gain of $106 million from currency and costs associated with the acquisition of
Synthes, Inc.
(6) The second quarter of 2012 includes after-tax charges of $717 million for asset write-downs, $611 million from net litigation
expense, $564 million associated with the acquisition of Synthes, Inc. and $344 million from impairment of in-process research and
development.
(7) The third quarter of 2012 includes after-tax charges of $135 million associated with the acquisition of Synthes, Inc., $340 million
from impairment of in-process research and development, $70 million associated with net litigation expense, and $24 million
associated with the DePuy ASR™ Hip program.
(8) The fourth quarter of 2012 includes after-tax charges of $371 million from net litigation expense, $306 million associated with the
acquisition of Synthes, Inc., $73 million associated with the DePuy ASR™ Hip program and $59 million from impairment of in-process
research and development.
20. Business Combinations and Divestitures
Certain businesses were acquired for $835 million in cash and $193 million of liabilities assumed during 2013. These
acquisitions were accounted for using the acquisition method and, accordingly, results of operations have been included
in the financial statements from their respective dates of acquisition.
The assumed liabilities primarily represent the fair value of the contingent consideration which may be payable related to
the acquisition of Aragon Pharmaceuticals, Inc. As per terms of the agreement, additional payments of up to $350 million
may be paid in the future based on reaching predetermined milestones.
The 2013 acquisitions included: Flexible Stenting Solutions, Inc., a leading developer of innovative flexible peripheral
arterial, venous and biliary stents; Shanghai Elsker Mother & Baby Co., Ltd, a baby care company in China and Aragon
Pharmaceuticals, Inc., a privately-held, pharmaceutical discovery and development company focused on drugs to treat
hormonally-driven cancers.
50 •Johnson & Johnson 2013 Annual Report