Johnson and Johnson 2015 Annual Report Download - page 6

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acquisitions and partnership opportunities.
Finally, we consider other prudent ways to
return value to shareholders such as share
repurchase programs.
During 2015, we increased our dividend for the
53rd consecutive year, we invested nearly $2.5
billion in licensing, acquisitions and strategic
partnerships, and we announced a $10 billion
share repurchase program in October.
Over the past decade, we have supported
our organic growth programs and prioritized
business needs while also investing
about 30 percent of our free cash flows**
in merger and acquisition opportunities.
Approximately 70 percent has been returned
to our shareholders in the form of dividends
or share repurchases. Historically, about
half of our growth has come from mergers
and acquisitions, and half from internal
development, which we expect to continue
in the future. With our strong balance sheet,
we have the financial strength and flexibility
to execute on all of our capital allocation
priorities simultaneously.
OUR DECENTRALIZED MANAGEMENT
APPROACH ACKNOWLEDGES THAT
THOSE CLOSEST TO PATIENTS AND
CUSTOMERS ARE IN THE BEST POSITION
TO UNDERSTAND AND ADDRESS
THEIR NEEDS.
In order to meet our performance objectives,
we have developed a set of near-term
priorities for each business segment that will
enable our enterprise to achieve the growth
we expect in the long term, while also driving
success for each segment.
As an enterprise, we continue to focus
on delivering on our financial and quality
commitments. Consistent with our long-term
strategy, we exceeded our 2015 adjusted
operational earnings per share growth
goal and met our operational sales and
free cash flow goals**, while executing
against our enterprise priorities for long-
term value creation.
The success of our strategies is predicated
on the strength of our leaders and our
talented, diverse employees across the
globe, with their broad base of experience
helping to drive results. Our goal is to attract
and retain the best talent in order to deliver
the best outcomes. We’ve made significant
investments, both internally and externally, in
global diverse talent who share our vision.
PHARMACEUTICALS
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strong financial results and continued to
strengthen our industry-leading innovation
pipeline in 2015. Our objective is to continue
building on our launch excellence and robust
pipeline of transformational medicines.
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strategy, focused on five therapeutic areas
of high unmet medical need, a robust
innovation engine and proven commercial
capabilities. As we announced at our
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are investing in our future with 10 new
product candidates which we plan to file
for regulatory approval by 2019, each with
the potential to exceed a billion dollars in
annual sales. In 2015, we delivered the first
of those breakthrough medicines to the
THE SUCCESS
OF OUR
STRATEGIES IS
PREDICATED
ON THE
STRENGTH OF
OUR LEADERS &
OUR TALENTED,
DIVERSE
EMPLOYEES
ACROSS THE
GLOBE, WITH
THEIR BROAD
BASE OF
EXPERIENCE
HELPING TO
DRIVE RESULTS.
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