For the fiscal year ended January 3, 2016
|
Commission file number 1-3215
|
New Jersey
|
|
22-1024240
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
One Johnson & Johnson Plaza
New Brunswick, New Jersey
|
|
08933
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, Par Value $1.00
4.75% Notes Due November 2019
5.50% Notes Due November 2024
|
|
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
|
Parts I and III:
|
|
Portions of registrant’s proxy statement for its 2016 annual meeting of shareholders filed within 120 days after the close of the registrant’s fiscal year (the "Proxy Statement"), are incorporated by reference to this report on Form 10-K (this "Report").
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Item
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Page
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1
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1A.
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1B.
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2
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3
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4
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5
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6
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7
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7A.
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8
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9
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9A.
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9B.
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10
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11
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12
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13
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14
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15
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Item 1.
|
BUSINESS
|
|
1
|
|
2
|
|
3
|
Item 1A.
|
RISK FACTORS
|
Item 1B.
|
UNRESOLVED STAFF COMMENTS
|
|
4
|
Segment
|
|
Square Feet
(in thousands)
|
|
Consumer
|
|
6,942
|
|
Pharmaceutical
|
|
7,435
|
|
Medical Devices
|
|
6,919
|
|
Worldwide Total
|
|
21,296
|
|
Geographic Area
|
|
Number of Facilities
|
|
Square Feet
(in thousands)
|
||
United States
|
|
36
|
|
|
5,808
|
|
Europe
|
|
38
|
|
|
7,917
|
|
Western Hemisphere, excluding U.S.
|
|
14
|
|
|
2,815
|
|
Africa, Asia and Pacific
|
|
33
|
|
|
4,756
|
|
Worldwide Total
|
|
121
|
|
|
21,296
|
|
|
5
|
Item 3.
|
LEGAL PROCEEDINGS
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
Name
|
|
Age
|
|
Position
|
Dominic J. Caruso
|
|
58
|
|
Member, Executive Committee; Vice President, Finance; Chief Financial Officer(a)
|
Peter M. Fasolo
|
|
53
|
|
Member, Executive Committee; Vice President, Global Human Resources(b)
|
Alex Gorsky
|
|
55
|
|
Chairman, Board of Directors; Chairman, Executive Committee; Chief Executive Officer
|
Sandra E. Peterson
|
|
57
|
|
Member, Executive Committee; Group Worldwide Chairman(c)
|
Paulus Stoffels
|
|
54
|
|
Member, Executive Committee; Chief Scientific Officer; Worldwide Chairman, Pharmaceuticals(d)
|
Michael H. Ullmann
|
|
57
|
|
Member, Executive Committee; Vice President, General Counsel(e)
|
(a)
|
Mr. D. J. Caruso joined the Company in 1999 when the Company acquired Centocor, Inc. At the time of that acquisition, he had been Senior Vice President, Finance of Centocor. Mr. Caruso was named Vice President, Finance of Ortho-McNeil Pharmaceutical, Inc., a subsidiary of the Company, in 2001 and Vice President, Group Finance of the Company’s Medical Devices and Diagnostics Group in 2003. In 2005, Mr. Caruso was named Vice President of the Company’s Group Finance organization. Mr. Caruso became a Member of the Executive Committee and Vice President, Finance and Chief Financial Officer in 2007.
|
(b)
|
Dr. P. M. Fasolo joined the Company in 2004 as Vice President, Worldwide Human Resources for Cordis Corporation, a subsidiary of the Company. He was then named Vice President, Global Talent Management for the Company. He left Johnson & Johnson in 2007 to join Kohlberg Kravis Roberts & Co. as Chief Talent Officer. Dr. Fasolo returned to the Company in 2010 as the Vice President, Global Human Resources, and in 2011, he became a Member of the Executive Committee.
|
(c)
|
Ms. S. E. Peterson joined the Company in 2012 as Group Worldwide Chairman and a Member of the Executive Committee, with responsibility for the Consumer Group of Companies, consumer medical device businesses in the Vision Care and Diabetes Care franchises, and functions such as Johnson & Johnson Supply Chain, Information Technology, Wellness and Prevention and Global Strategic Design. Prior to joining Johnson & Johnson, Ms. Peterson had an extensive global career in healthcare, consumer goods and consulting. Most recently, she was Chairman and Chief Executive Officer of Bayer CropScience AG in Germany, previously serving as President and Chief Executive Officer of Bayer Medical Care and President of Bayer HealthCare AG's Diabetes Care Division. Before joining Bayer in 2005, Ms. Peterson held a number of leadership roles at Medco Health Solutions (previously known as Merck-Medco). Among her responsibilities was the application of information technology to healthcare systems.
|
|
6
|
(d)
|
Dr. P. Stoffels joined the Company in 2002 with the acquisition of Virco and Tibotec, where he was Chief Executive Officer of Virco and Chairman of Tibotec. In 2005, he was appointed Company Group Chairman, Global Virology where he led the development of PREZISTA
®
and INTELENCE
®
, leading products for the treatment of HIV. In 2006, he assumed the role of Company Group Chairman, Pharmaceuticals, with responsibility for worldwide research and development for the Central Nervous System and Internal Medicine Franchises. Dr. Stoffels was appointed Global Head, Research & Development, Pharmaceuticals, in 2009, and in 2011 became Worldwide Chairman, Pharmaceuticals, with responsibility for the Company's therapeutic pipeline through global research and development and strategic business development. In 2012, Dr. Stoffels was also appointed Chief Scientific Officer, with responsibility for enterprise-wide innovation and product safety, and a Member of the Executive Committee.
|
(e)
|
Mr. M. H. Ullmann joined the Company in 1989 as a corporate attorney in the Law Department. He was appointed Corporate Secretary in 1999 and served in that role until 2006. During that time, he also held various management positions in the Law Department. In 2006, he was named General Counsel, Medical Devices and Diagnostics. Mr. Ullmann was appointed Vice President, General Counsel and a Member of the Executive Committee in 2012.
|
Item 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period
|
|
Total Number
of Shares Purchased
(1)
|
|
Avg. Price
Paid Per Share
|
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
(2)
|
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
(3)
|
|||
September 28, 2015 through October 25, 2015
|
|
1,134,367
|
|
|
$
|
96.45
|
|
|
-
|
|
-
|
October 26, 2015 through November 22, 2015
|
|
6,298,421
|
|
|
100.21
|
|
|
5,408,965
|
|
-
|
|
November 23, 2015 through January 3, 2016
|
|
11,330,068
|
|
|
102.30
|
|
|
4,462,352
|
|
-
|
|
Total
|
|
18,762,856
|
|
|
|
|
9,871,317
|
|
87,618,945
|
(1)
|
During the fiscal fourth quarter of 2015, the Company repurchased an aggregate of 18,762,856 shares of Johnson & Johnson Common Stock in open-market transactions, of which 9,871,317 shares were purchased pursuant to the repurchase program that was publicly announced on October 13, 2015, and of which 8,891,539 shares were purchased in open-market transactions as part of a systematic plan to meet the needs of the Company’s compensation programs.
|
(2)
|
As of January 3, 2016, an aggregate of 9,871,317 shares were purchased for a total of $1.0 billion since the inception of the repurchase program announced on October 13, 2015.
|
(3)
|
As of January 3, 2016, the maximum number of shares that may yet be purchased under the plan is 87,618,945 based on the closing price of Johnson & Johnson Common Stock on the New York Stock Exchange on December 31, 2015 of $102.72 per share.
|
|
7
|
Item 6.
|
SELECTED FINANCIAL DATA
|
(Dollars in Millions Except Per Share Amounts)
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
2006
|
|
2005
|
||||||||||
Sales to customers — U.S.
|
$35,687
|
|
34,782
|
|
|
31,910
|
|
|
29,830
|
|
|
28,908
|
|
|
29,450
|
|
|
30,889
|
|
|
32,309
|
|
|
32,444
|
|
|
29,775
|
|
|
28,377
|
|
Sales to customers — International
|
34,387
|
|
39,549
|
|
|
39,402
|
|
|
37,394
|
|
|
36,122
|
|
|
32,137
|
|
|
31,008
|
|
|
31,438
|
|
|
28,651
|
|
|
23,549
|
|
|
22,137
|
|
Total sales
|
70,074
|
|
74,331
|
|
|
71,312
|
|
|
67,224
|
|
|
65,030
|
|
|
61,587
|
|
|
61,897
|
|
|
63,747
|
|
|
61,095
|
|
|
53,324
|
|
|
50,514
|
|
Cost of products sold
|
21,536
|
|
22,746
|
|
|
22,342
|
|
|
21,658
|
|
|
20,360
|
|
|
18,792
|
|
|
18,447
|
|
|
18,511
|
|
|
17,751
|
|
|
15,057
|
|
|
14,010
|
|
Selling, marketing and administrative expenses
|
21,203
|
|
21,954
|
|
|
21,830
|
|
|
20,869
|
|
|
20,969
|
|
|
19,424
|
|
|
19,801
|
|
|
21,490
|
|
|
20,451
|
|
|
17,433
|
|
|
17,211
|
|
Research and development expense
|
9,046
|
|
8,494
|
|
|
8,183
|
|
|
7,665
|
|
|
7,548
|
|
|
6,844
|
|
|
6,986
|
|
|
7,577
|
|
|
7,680
|
|
|
7,125
|
|
|
6,462
|
|
In-process research and development
|
224
|
|
178
|
|
|
580
|
|
|
1,163
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
807
|
|
|
559
|
|
|
362
|
|
Interest income
|
(128)
|
|
(67
|
)
|
|
(74
|
)
|
|
(64
|
)
|
|
(91
|
)
|
|
(107
|
)
|
|
(90
|
)
|
|
(361
|
)
|
|
(452
|
)
|
|
(829
|
)
|
|
(487
|
)
|
Interest expense, net of portion capitalized
|
552
|
|
533
|
|
|
482
|
|
|
532
|
|
|
571
|
|
|
455
|
|
|
451
|
|
|
435
|
|
|
296
|
|
|
63
|
|
|
54
|
|
Other (income) expense, net
|
(2,064)
|
|
(70
|
)
|
|
2,498
|
|
|
1,626
|
|
|
2,743
|
|
|
(768
|
)
|
|
(526
|
)
|
|
(1,015
|
)
|
|
534
|
|
|
(671
|
)
|
|
(214
|
)
|
Restructuring
|
509
|
|
—
|
|
|
—
|
|
|
—
|
|
|
569
|
|
|
—
|
|
|
1,073
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
—
|
|
|
50,878
|
|
53,768
|
|
|
55,841
|
|
|
53,449
|
|
|
52,669
|
|
|
44,640
|
|
|
46,142
|
|
|
46,818
|
|
|
47,812
|
|
|
38,737
|
|
|
37,398
|
|
Earnings before provision for taxes on income
|
$19,196
|
|
20,563
|
|
|
15,471
|
|
|
13,775
|
|
|
12,361
|
|
|
16,947
|
|
|
15,755
|
|
|
16,929
|
|
|
13,283
|
|
|
14,587
|
|
|
13,116
|
|
Provision for taxes on income
|
3,787
|
|
4,240
|
|
|
1,640
|
|
|
3,261
|
|
|
2,689
|
|
|
3,613
|
|
|
3,489
|
|
|
3,980
|
|
|
2,707
|
|
|
3,534
|
|
|
3,056
|
|
Net earnings
|
15,409
|
|
16,323
|
|
|
13,831
|
|
|
10,514
|
|
|
9,672
|
|
|
13,334
|
|
|
12,266
|
|
|
12,949
|
|
|
10,576
|
|
|
11,053
|
|
|
10,060
|
|
Add: Net loss attributable to noncontrolling interest
|
—
|
|
—
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net earnings attributable to Johnson & Johnson
|
15,409
|
|
16,323
|
|
|
13,831
|
|
|
10,853
|
|
|
9,672
|
|
|
13,334
|
|
|
12,266
|
|
|
12,949
|
|
|
10,576
|
|
|
11,053
|
|
|
10,060
|
|
Percent of sales to customers
|
22.0%
|
|
22.0
|
|
|
19.4
|
|
|
16.1
|
|
|
14.9
|
|
|
21.7
|
|
|
19.8
|
|
|
20.3
|
|
|
17.3
|
|
|
20.7
|
|
|
19.9
|
|
Diluted net earnings per share of common stock
(1)
|
$5.48
|
|
5.70
|
|
|
4.81
|
|
|
3.86
|
|
|
3.49
|
|
|
4.78
|
|
|
4.40
|
|
|
4.57
|
|
|
3.63
|
|
|
3.73
|
|
|
3.35
|
|
Percent return on average shareholders’ equity
|
21.9%
|
|
22.7
|
|
|
19.9
|
|
|
17.8
|
|
|
17.0
|
|
|
24.9
|
|
|
26.4
|
|
|
30.2
|
|
|
25.6
|
|
|
28.3
|
|
|
28.2
|
|
Percent increase (decrease) over previous year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Sales to customers
|
(5.7)%
|
|
4.2
|
|
|
6.1
|
|
|
3.4
|
|
|
5.6
|
|
|
(0.5
|
)
|
|
(2.9
|
)
|
|
4.3
|
|
|
14.6
|
|
|
5.6
|
|
|
6.7
|
|
Diluted net earnings per share
|
(3.9)%
|
|
18.5
|
|
|
24.6
|
|
|
10.6
|
|
|
(27.0
|
)
|
|
8.6
|
|
|
(3.7
|
)
|
|
25.9
|
|
|
(2.7
|
)
|
|
11.3
|
|
|
22.3
|
|
Supplementary balance sheet data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Property, plant and equipment, net
|
15,905
|
|
16,126
|
|
|
16,710
|
|
|
16,097
|
|
|
14,739
|
|
|
14,553
|
|
|
14,759
|
|
|
14,365
|
|
|
14,185
|
|
|
13,044
|
|
|
10,830
|
|
Additions to property, plant and equipment
|
3,463
|
|
3,714
|
|
|
3,595
|
|
|
2,934
|
|
|
2,893
|
|
|
2,384
|
|
|
2,365
|
|
|
3,066
|
|
|
2,942
|
|
|
2,666
|
|
|
2,632
|
|
Total assets
(2)
|
133,411
|
|
130,358
|
|
|
131,754
|
|
|
121,347
|
|
|
113,644
|
|
|
102,908
|
|
|
94,682
|
|
|
84,912
|
|
|
80,954
|
|
|
70,556
|
|
|
58,864
|
|
Long-term debt
|
12,857
|
|
15,122
|
|
|
13,328
|
|
|
11,489
|
|
|
12,969
|
|
|
9,156
|
|
|
8,223
|
|
|
8,120
|
|
|
7,074
|
|
|
2,014
|
|
|
2,017
|
|
Operating cash flow
|
19,279
|
|
18,471
|
|
|
17,414
|
|
|
15,396
|
|
|
14,298
|
|
|
16,385
|
|
|
16,571
|
|
|
14,972
|
|
|
15,022
|
|
|
14,248
|
|
|
11,799
|
|
Common stock information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Dividends paid per share
|
$2.95
|
|
2.76
|
|
|
2.59
|
|
|
2.40
|
|
|
2.25
|
|
|
2.11
|
|
|
1.93
|
|
|
1.795
|
|
|
1.62
|
|
|
1.455
|
|
|
1.275
|
|
Shareholders’ equity per share
|
25.82
|
|
25.06
|
|
|
26.25
|
|
|
23.33
|
|
|
20.95
|
|
|
20.66
|
|
|
18.37
|
|
|
15.35
|
|
|
15.25
|
|
|
13.59
|
|
|
13.01
|
|
Market price per share (year-end close)
|
$102.72
|
|
105.06
|
|
|
92.35
|
|
|
69.48
|
|
|
65.58
|
|
|
61.85
|
|
|
64.41
|
|
|
58.56
|
|
|
67.38
|
|
|
66.02
|
|
|
60.10
|
|
Average shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
— basic
|
2,771.8
|
|
2,815.2
|
|
|
2,809.2
|
|
|
2,753.3
|
|
|
2,736.0
|
|
|
2,751.4
|
|
|
2,759.5
|
|
|
2,802.5
|
|
|
2,882.9
|
|
|
2,936.4
|
|
|
2,973.9
|
|
— diluted
|
2,812.9
|
|
2,863.9
|
|
|
2,877.0
|
|
|
2,812.6
|
|
|
2,775.3
|
|
|
2,788.8
|
|
|
2,789.1
|
|
|
2,835.6
|
|
|
2,910.7
|
|
|
2,961.0
|
|
|
3,002.8
|
|
Employees (thousands)
|
127.1
|
|
126.5
|
|
|
128.1
|
|
|
127.6
|
|
|
117.9
|
|
|
114.0
|
|
|
115.5
|
|
|
118.7
|
|
|
119.2
|
|
|
122.2
|
|
|
115.6
|
|
|
8
|
Item 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
|
9
|
Sales increase/(decrease) due to:
|
|
2015
|
|
2014
|
|
2013
|
|||
Volume
|
|
1.2
|
%
|
|
6.3
|
|
|
7.6
|
|
Price
|
|
0.6
|
|
|
(0.2
|
)
|
|
0.1
|
|
Currency
|
|
(7.5
|
)
|
|
(1.9
|
)
|
|
(1.6
|
)
|
Total
|
|
(5.7
|
)%
|
|
4.2
|
|
|
6.1
|
|
|
10
|
|
|
|
|
|
|
|
|
% Change
|
||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
’15 vs. ’14
|
|
’14 vs. ’13
|
||||||
OTC
|
|
$
|
3,975
|
|
|
4,106
|
|
|
4,028
|
|
|
(3.2
|
)%
|
|
1.9
|
|
Skin Care
|
|
3,531
|
|
|
3,758
|
|
|
3,704
|
|
|
(6.0
|
)
|
|
1.5
|
|
|
Baby Care
|
|
2,044
|
|
|
2,239
|
|
|
2,295
|
|
|
(8.7
|
)
|
|
(2.4
|
)
|
|
Oral Care
|
|
1,580
|
|
|
1,647
|
|
|
1,622
|
|
|
(4.1
|
)
|
|
1.5
|
|
|
Women’s Health
|
|
1,200
|
|
|
1,302
|
|
|
1,568
|
|
|
(7.8
|
)
|
|
(17.0
|
)
|
|
Wound Care/Other
|
|
1,177
|
|
|
1,444
|
|
|
1,480
|
|
|
(18.5
|
)
|
|
(2.4
|
)
|
|
Total Consumer Sales
|
|
$
|
13,507
|
|
|
14,496
|
|
|
14,697
|
|
|
(6.8
|
)%
|
|
(1.4
|
)
|
|
11
|
|
|
|
|
|
|
|
|
% Change
|
||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
’15 vs. ’14
|
|
’14 vs. ’13
|
||||||
Total Immunology
|
|
$
|
10,402
|
|
|
10,193
|
|
|
9,190
|
|
|
2.1
|
%
|
|
10.9
|
|
REMICADE
®
|
|
6,561
|
|
|
6,868
|
|
|
6,673
|
|
|
(4.5
|
)
|
|
2.9
|
|
|
SIMPONI
®
/SIMPONI ARIA
®
|
|
1,328
|
|
|
1,187
|
|
|
932
|
|
|
11.9
|
|
|
27.4
|
|
|
STELARA
®
|
|
2,474
|
|
|
2,072
|
|
|
1,504
|
|
|
19.4
|
|
|
37.8
|
|
|
Other Immunology
|
|
39
|
|
|
66
|
|
|
81
|
|
|
(40.9
|
)
|
|
(18.5
|
)
|
|
Total Infectious Diseases
|
|
3,656
|
|
|
5,599
|
|
|
3,550
|
|
|
(34.7
|
)
|
|
57.7
|
|
|
EDURANT
®
|
|
410
|
|
|
365
|
|
|
236
|
|
|
12.3
|
|
|
54.7
|
|
|
OLYSIO
®
/SOVRIAD
®
|
|
621
|
|
|
2,302
|
|
|
23
|
|
|
(73.0
|
)
|
|
**
|
|
|
PREZISTA
®
/ PREZCOBIX
®
/REZOLSTA
®
|
|
1,810
|
|
|
1,831
|
|
|
1,673
|
|
|
(1.1
|
)
|
|
9.4
|
|
|
Other Infectious Diseases
|
|
815
|
|
|
1,101
|
|
|
1,618
|
|
|
(26.0
|
)
|
|
(32.0
|
)
|
|
Total Neuroscience
|
|
6,259
|
|
|
6,487
|
|
|
6,667
|
|
|
(3.5
|
)
|
|
(2.7
|
)
|
|
CONCERTA
®
/methylphenidate
|
|
821
|
|
|
599
|
|
|
782
|
|
|
37.1
|
|
|
(23.4
|
)
|
|
INVEGA
®
/paliperidone
|
|
573
|
|
|
640
|
|
|
583
|
|
|
(10.5
|
)
|
|
9.8
|
|
|
INVEGA SUSTENNA
®
/XEPLION
®
/INVEGA TRINZA
®
|
|
1,830
|
|
|
1,588
|
|
|
1,248
|
|
|
15.2
|
|
|
27.2
|
|
|
RISPERDAL
®
CONSTA
®
|
|
970
|
|
|
1,190
|
|
|
1,318
|
|
|
(18.5
|
)
|
|
(9.7
|
)
|
|
Other Neuroscience
|
|
2,065
|
|
|
2,470
|
|
|
2,736
|
|
|
(16.4
|
)
|
|
(9.7
|
)
|
|
Total Oncology
|
|
4,695
|
|
|
4,457
|
|
|
3,773
|
|
|
5.3
|
|
|
18.1
|
|
|
IMBRUVICA
®
|
|
689
|
|
|
200
|
|
|
—
|
|
|
**
|
|
—
|
|
||
VELCADE
®
|
|
1,333
|
|
|
1,618
|
|
|
1,660
|
|
|
(17.6
|
)
|
|
(2.5
|
)
|
|
ZYTIGA
®
|
|
2,231
|
|
|
2,237
|
|
|
1,698
|
|
|
(0.3
|
)
|
|
31.7
|
|
|
Other Oncology
|
|
442
|
|
|
402
|
|
|
415
|
|
|
10.0
|
|
|
(3.1
|
)
|
|
Cardiovascular / Metabolism / Other***
|
|
6,418
|
|
|
5,577
|
|
|
4,945
|
|
|
15.1
|
|
|
12.8
|
|
|
XARELTO
®
|
|
1,868
|
|
|
1,522
|
|
|
864
|
|
|
22.7
|
|
|
76.2
|
|
|
INVOKANA
®
/ INVOKAMET
®
|
|
1,308
|
|
|
586
|
|
|
123
|
|
|
**
|
|
**
|
|
||
PROCRIT
®
/EPREX
®
|
|
1,068
|
|
|
1,238
|
|
|
1,364
|
|
|
(13.7
|
)
|
|
(9.2
|
)
|
|
Other
|
|
2,174
|
|
|
2,231
|
|
|
2,594
|
|
|
(2.6
|
)
|
|
(14.0
|
)
|
|
Total Pharmaceutical Sales
|
|
$
|
31,430
|
|
|
32,313
|
|
|
28,125
|
|
|
(2.7
|
)%
|
|
14.9
|
|
|
12
|
|
13
|
Product Name (Chemical Name)
|
Indication
|
US Approv
|
EU Approv
|
US Filing
|
EU Filing
|
DARZALEX
™
(daratumumab)
|
For the treatment of double refractory multiple myeloma
|
ü
|
|
|
ü
|
EDURANT
®
(rilpiravine)
|
For use in combination with other anti-retroviral agents, for the treatment-naïve adolescent patients aged 12 to 18 years with HIV-1 infection
|
ü
|
ü
|
|
|
IMBRUVICA
®
(ibrutinib)
|
Treatment of Waldenström's Macroglobulinemia
|
ü
|
ü
|
|
|
|
Treatment for patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab
|
|
|
ü
|
ü
|
|
For use in treatment-naïve patients with chronic lymphocytic leukemia
|
|
|
ü
|
ü
|
INVEGA TRINZA
®
(paliperidone palmitate)
|
An atypical antipsychotic injection administered four times a year for the treatment of schizophrenia
|
ü
|
|
|
ü
|
INVOKAMET
®
XR (canagliflozin)
|
A once-daily therapy combining fixed doses of canagliflozin and metformin hydrochloride extended release for the treatment of adults with type 2 diabetes
|
|
|
ü
|
|
PREZCOBIX
®
(darunavir/cobicistat)
|
For use in combination with other antiretroviral medicinal products for the treatment of human immunodeficiency virus (HIV-1)
|
ü
|
|
|
|
SIMPONI
®
(golimumab)
|
Treatment of non-radiographic axial spondyloarthritis
|
|
ü
|
|
|
STELARA
®
(ustekinumab)
|
For the treatment of adolescents with moderate-to-severe psoriasis
|
|
ü
|
|
|
|
For the treatment of adult patients with moderately to severely active Crohn's disease
|
|
|
ü
|
ü
|
VELCADE
®
(bortezomib)
|
For use in combination with rituximab, cyclophosphamide, doxorubicin and prednisone for the treatment of adult patients with previously untreated mantle cell lymphoma
|
|
ü
|
|
|
YONDELIS
®
(trabectedin)
|
For the treatment of patients with unresectable or metastatic liposarcoma or leiomyosarcoma
|
ü
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
% Change
|
||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
’15 vs. ’14
|
|
’14 vs. ’13
|
||||||
Orthopaedics
|
|
$
|
9,262
|
|
|
9,675
|
|
|
9,509
|
|
|
(4.3
|
)%
|
|
1.7
|
|
Hips
|
|
1,332
|
|
|
1,368
|
|
|
1,333
|
|
|
(2.6
|
)
|
|
2.6
|
|
|
Knees
|
|
1,496
|
|
|
1,533
|
|
|
1,496
|
|
|
(2.4
|
)
|
|
2.5
|
|
|
Trauma
|
|
2,528
|
|
|
2,640
|
|
|
2,555
|
|
|
(4.2
|
)
|
|
3.3
|
|
|
Spine & Other
|
|
3,906
|
|
|
4,134
|
|
|
4,125
|
|
|
(5.5
|
)
|
|
0.2
|
|
|
Surgery
|
|
9,217
|
|
|
9,717
|
|
|
9,773
|
|
|
(5.1
|
)
|
|
(0.6
|
)
|
|
Advanced
|
|
3,275
|
|
|
3,237
|
|
|
3,088
|
|
|
1.2
|
|
|
4.8
|
|
|
General
|
|
4,482
|
|
|
4,970
|
|
|
5,136
|
|
|
(9.8
|
)
|
|
(3.2
|
)
|
|
Specialty
|
|
1,460
|
|
|
1,510
|
|
|
1,549
|
|
|
(3.3
|
)
|
|
(2.5
|
)
|
|
Vision Care
|
|
2,608
|
|
|
2,818
|
|
|
2,937
|
|
|
(7.5
|
)
|
|
(4.1
|
)
|
|
Cardiovascular
|
|
2,036
|
|
|
2,208
|
|
|
2,077
|
|
|
(7.8
|
)
|
|
6.3
|
|
|
Diabetes Care
|
|
1,928
|
|
|
2,142
|
|
|
2,309
|
|
|
(10.0
|
)
|
|
(7.2
|
)
|
|
Diagnostics
|
|
86
|
|
|
962
|
|
|
1,885
|
|
|
(91.1
|
)
|
|
(49.0
|
)
|
|
Total Medical Devices Sales
|
|
$
|
25,137
|
|
|
27,522
|
|
|
28,490
|
|
|
(8.7
|
)%
|
|
(3.4
|
)
|
|
15
|
% of Sales
|
|
2015
|
|
2014
|
|
2013
|
|||
Cost of products sold
|
|
30.7
|
%
|
|
30.6
|
|
|
31.3
|
|
Percent point increase/(decrease) over the prior year
|
|
0.1
|
|
|
(0.7
|
)
|
|
(0.9
|
)
|
Selling, marketing and administrative expenses
|
|
30.3
|
%
|
|
29.5
|
|
|
30.6
|
|
Percent point increase/(decrease) over the prior year
|
|
0.8
|
|
|
(1.1
|
)
|
|
(0.4
|
)
|
|
16
|
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||
(Dollars in Millions)
|
|
Amount
|
|
% of Sales*
|
|
Amount
|
|
% of Sales*
|
|
Amount
|
|
% of Sales*
|
|||||||
Consumer
|
|
$
|
625
|
|
|
4.6
|
%
|
|
629
|
|
|
4.3
|
|
|
590
|
|
|
4.0
|
|
Pharmaceutical
|
|
6,821
|
|
|
21.7
|
|
|
6,213
|
|
|
19.2
|
|
|
5,810
|
|
|
20.7
|
|
|
Medical Devices
|
|
1,600
|
|
|
6.4
|
|
|
1,652
|
|
|
6.0
|
|
|
1,783
|
|
|
6.3
|
|
|
Total research and development expense
|
|
$
|
9,046
|
|
|
12.9
|
%
|
|
8,494
|
|
|
11.4
|
|
|
8,183
|
|
|
11.5
|
|
Percent increase/(decrease) over the prior year
|
|
6.5
|
%
|
|
|
|
|
3.8
|
|
|
|
|
|
6.8
|
|
|
|
|
*
|
As a percent to segment sales
|
|
17
|
|
|
|
|
|
|
Percent of Segment Sales
|
||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Consumer
|
|
$
|
1,787
|
|
|
1,941
|
|
|
13.2
|
%
|
|
13.4
|
Pharmaceutical
|
|
11,734
|
|
|
11,696
|
|
|
37.3
|
|
|
36.2
|
|
Medical Devices
|
|
6,826
|
|
|
7,953
|
|
|
27.2
|
|
|
28.9
|
|
Total
(1)
|
|
20,347
|
|
|
21,590
|
|
|
29.0
|
|
|
29.0
|
|
Less: Expenses not allocated to segments
(2)
|
|
1,151
|
|
|
1,027
|
|
|
|
|
|
|
|
Earnings before provision for taxes on income
|
|
$
|
19,196
|
|
|
20,563
|
|
|
27.4
|
%
|
|
27.7
|
(1)
|
See Note 18 to the Consolidated Financial Statements for more details.
|
(2)
|
Amounts not allocated to segments include interest (income) expense, noncontrolling interests, and general corporate (income) expense.
|
|
18
|
|
19
|
|
20
|
(Dollars in Millions)
|
|
Debt Obligations
|
|
Interest on
Debt Obligations |
|
Unfunded
Retirement Plans |
|
Operating Leases
|
|
Total
|
||||||
2016
|
|
$
|
2,104
|
|
|
586
|
|
|
76
|
|
|
224
|
|
|
2,990
|
|
2017
|
|
1,790
|
|
|
554
|
|
|
77
|
|
|
194
|
|
|
2,615
|
|
|
2018
|
|
1,501
|
|
|
490
|
|
|
82
|
|
|
136
|
|
|
2,209
|
|
|
2019
|
|
1,587
|
|
|
446
|
|
|
88
|
|
|
90
|
|
|
2,211
|
|
|
2020
|
|
683
|
|
|
373
|
|
|
93
|
|
|
74
|
|
|
1,223
|
|
|
After 2020
|
|
7,296
|
|
|
4,303
|
|
|
559
|
|
|
109
|
|
|
12,267
|
|
|
Total
|
|
$
|
14,961
|
|
|
6,752
|
|
|
975
|
|
|
827
|
|
|
23,515
|
|
|
2015
|
|
2014
|
|
2013
|
||||
First quarter
|
$
|
0.70
|
|
|
0.66
|
|
|
0.61
|
|
Second quarter
|
0.75
|
|
|
0.70
|
|
|
0.66
|
|
|
Third quarter
|
0.75
|
|
|
0.70
|
|
|
0.66
|
|
|
Fourth quarter
|
0.75
|
|
|
0.70
|
|
|
0.66
|
|
|
Total
|
$
|
2.95
|
|
|
2.76
|
|
|
2.59
|
|
|
21
|
|
22
|
(Dollars in Millions)
|
|
Balance at
Beginning of Period |
|
Accruals
|
|
Payments/Credits
|
|
Balance at
End of Period |
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(1)
|
|
$
|
122
|
|
|
581
|
|
|
(564
|
)
|
|
139
|
|
Accrued returns
|
|
77
|
|
|
84
|
|
|
(107
|
)
|
|
54
|
|
|
Accrued promotions
|
|
241
|
|
|
1,846
|
|
|
(1,675
|
)
|
|
412
|
|
|
Subtotal
|
|
$
|
440
|
|
|
2,511
|
|
|
(2,346
|
)
|
|
605
|
|
Reserve for doubtful accounts
|
|
18
|
|
|
5
|
|
|
(5
|
)
|
|
18
|
|
|
Reserve for cash discounts
|
|
22
|
|
|
206
|
|
|
(211
|
)
|
|
17
|
|
|
Total
|
|
$
|
480
|
|
|
2,722
|
|
|
(2,562
|
)
|
|
640
|
|
|
|
|
|
|
|
|
|
|
|||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(1)
|
|
$
|
137
|
|
|
619
|
|
|
(634
|
)
|
|
122
|
|
Accrued returns
|
|
80
|
|
|
102
|
|
|
(105
|
)
|
|
77
|
|
|
Accrued promotions
|
|
321
|
|
|
1,850
|
|
|
(1,930
|
)
|
|
241
|
|
|
Subtotal
|
|
$
|
538
|
|
|
2,571
|
|
|
(2,669
|
)
|
|
440
|
|
Reserve for doubtful accounts
|
|
25
|
|
|
5
|
|
|
(12
|
)
|
|
18
|
|
|
Reserve for cash discounts
|
|
24
|
|
|
215
|
|
|
(217
|
)
|
|
22
|
|
|
Total
|
|
$
|
587
|
|
|
2,791
|
|
|
(2,898
|
)
|
|
480
|
|
(1)
|
Includes reserve for customer rebates of $31 million at
January 3, 2016
and $37 million at
December 28, 2014
, recorded as a contra asset.
|
(Dollars in Millions)
|
|
Balance at
Beginning of Period |
|
Accruals
|
|
Payments/Credits
|
|
Balance at
End of Period |
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(1)
|
|
$
|
2,717
|
|
|
10,449
|
|
|
(9,715
|
)
|
|
3,451
|
|
Accrued returns
|
|
422
|
|
|
52
|
|
|
(70
|
)
|
|
404
|
|
|
Accrued promotions
|
|
34
|
|
|
127
|
|
|
(150
|
)
|
|
11
|
|
|
Subtotal
|
|
$
|
3,173
|
|
|
10,628
|
|
|
(9,935
|
)
|
|
3,866
|
|
Reserve for doubtful accounts
|
|
41
|
|
|
30
|
|
|
(25
|
)
|
|
46
|
|
|
Reserve for cash discounts
|
|
51
|
|
|
625
|
|
|
(613
|
)
|
|
63
|
|
|
Total
|
|
$
|
3,265
|
|
|
11,283
|
|
|
(10,573
|
)
|
|
3,975
|
|
|
|
|
|
|
|
|
|
|
|||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(1)
|
|
$
|
1,985
|
|
|
7,652
|
|
|
(6,920
|
)
|
|
2,717
|
|
Accrued returns
|
|
372
|
|
|
83
|
|
|
(33
|
)
|
|
422
|
|
|
Accrued promotions
|
|
96
|
|
|
34
|
|
|
(96
|
)
|
|
34
|
|
|
Subtotal
|
|
$
|
2,453
|
|
|
7,769
|
|
|
(7,049
|
)
|
|
3,173
|
|
Reserve for doubtful accounts
|
|
95
|
|
|
4
|
|
|
(58
|
)
|
|
41
|
|
|
Reserve for cash discounts
|
|
61
|
|
|
576
|
|
|
(586
|
)
|
|
51
|
|
|
Total
|
|
$
|
2,609
|
|
|
8,349
|
|
|
(7,693
|
)
|
|
3,265
|
|
(1)
|
Includes reserve for customer rebates of $64 million at
January 3, 2016
and $70 million* at
December 28, 2014
, recorded as a contra asset. *Prior year amount has been reclassified to conform to current year presentation.
|
|
23
|
(Dollars in Millions)
|
|
Balance at
Beginning of Period |
|
Accruals
|
|
Payments/Credits
|
|
Balance at
End of Period |
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(
1)
|
|
$
|
844
|
|
|
5,216
|
|
|
(4,871
|
)
|
|
1,189
|
|
Accrued returns
|
|
188
|
|
|
556
|
|
|
(505
|
)
|
|
239
|
|
|
Accrued promotions
|
|
53
|
|
|
95
|
|
|
(101
|
)
|
|
47
|
|
|
Subtotal
|
|
$
|
1,085
|
|
|
5,867
|
|
|
(5,477
|
)
|
|
1,475
|
|
Reserve for doubtful accounts
|
|
216
|
|
|
13
|
|
|
(25
|
)
|
|
204
|
|
|
Reserve for cash discounts
|
|
16
|
|
|
877
|
|
|
(873
|
)
|
|
20
|
|
|
Total
|
|
$
|
1,317
|
|
|
6,757
|
|
|
(6,375
|
)
|
|
1,699
|
|
|
|
|
|
|
|
|
|
|
|||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued rebates
(1)
|
|
$
|
801
|
|
|
4,663
|
|
|
(4,620
|
)
|
|
844
|
|
Accrued returns
|
|
180
|
|
|
395
|
|
|
(387
|
)
|
|
188
|
|
|
Accrued promotions
|
|
66
|
|
|
35
|
|
|
(48
|
)
|
|
53
|
|
|
Subtotal
|
|
$
|
1,047
|
|
|
5,093
|
|
|
(5,055
|
)
|
|
1,085
|
|
Reserve for doubtful accounts
|
|
213
|
|
|
62
|
|
|
(59
|
)
|
|
216
|
|
|
Reserve for cash discounts
|
|
18
|
|
|
815
|
|
|
(817
|
)
|
|
16
|
|
|
Total
|
|
$
|
1,278
|
|
|
5,970
|
|
|
(5,931
|
)
|
|
1,317
|
|
(1)
|
Includes reserve for customer rebates of $411 million at
January 3, 2016
and $354 million at
December 28, 2014
, recorded as a contra asset.
|
|
24
|
|
25
|
|
||||||||||||
|
2015
|
|
2014
|
|||||||||
|
High
|
|
Low
|
|
High
|
|
Low
|
|||||
First quarter
|
$
|
106.50
|
|
|
97.15
|
|
|
98.47
|
|
|
86.09
|
|
Second quarter
|
104.48
|
|
|
97.01
|
|
|
105.97
|
|
|
96.05
|
|
|
Third quarter
|
101.36
|
|
|
81.79
|
|
|
108.77
|
|
|
98.80
|
|
|
Fourth quarter
|
105.49
|
|
|
89.90
|
|
|
109.49
|
|
|
95.10
|
|
|
Year-end close
|
$102.72
|
|
105.06
|
|
26
|
|
27
|
Item 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Index to Audited Consolidated Financial Statements
|
|
|
28
|
|
2015
|
|
2014
|
|||
Assets
|
|
|
|
|||
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents (Notes 1 and 2)
|
$
|
13,732
|
|
|
14,523
|
|
Marketable securities (Notes 1 and 2)
|
24,644
|
|
|
18,566
|
|
|
Accounts receivable trade, less allowances for doubtful accounts $268 (2014, $275)
|
10,734
|
|
|
10,985
|
|
|
Inventories (Notes 1 and 3)
|
8,053
|
|
|
8,184
|
|
|
Prepaid expenses and other receivables
|
3,047
|
|
|
3,486
|
|
|
Total current assets
|
60,210
|
|
|
55,744
|
|
|
Property, plant and equipment, net (Notes 1 and 4)
|
15,905
|
|
|
16,126
|
|
|
Intangible assets, net (Notes 1 and 5)
|
25,764
|
|
|
27,222
|
|
|
Goodwill (Notes 1 and 5)
|
21,629
|
|
|
21,832
|
|
|
Deferred taxes on income (Note 1 and 8)
|
5,490
|
|
|
6,202
|
|
|
Other assets
|
4,413
|
|
|
3,232
|
|
|
Total assets
|
$
|
133,411
|
|
|
130,358
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Loans and notes payable (Note 7)
|
$
|
7,004
|
|
|
3,638
|
|
Accounts payable
|
6,668
|
|
|
7,633
|
|
|
Accrued liabilities
|
5,411
|
|
|
6,553
|
|
|
Accrued rebates, returns and promotions
|
5,440
|
|
|
4,010
|
|
|
Accrued compensation and employee related obligations
|
2,474
|
|
|
2,751
|
|
|
Accrued taxes on income (Note 8)
|
750
|
|
|
446
|
|
|
Total current liabilities
|
27,747
|
|
|
25,031
|
|
|
Long-term debt (Note 7)
|
12,857
|
|
|
15,122
|
|
|
Deferred taxes on income (Note 1 & 8)
|
2,562
|
|
|
2,447
|
|
|
Employee related obligations (Notes 9 and 10)
|
8,854
|
|
|
9,972
|
|
|
Other liabilities
|
10,241
|
|
|
8,034
|
|
|
Total liabilities
|
62,261
|
|
|
60,606
|
|
|
Shareholders’ equity
|
|
|
|
|
|
|
Preferred stock — without par value (authorized and unissued 2,000,000 shares)
|
—
|
|
|
—
|
|
|
Common stock — par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares)
|
3,120
|
|
|
3,120
|
|
|
Accumulated other comprehensive income (Note 13)
|
(13,165
|
)
|
|
(10,722
|
)
|
|
Retained earnings
|
103,879
|
|
|
97,245
|
|
|
|
93,834
|
|
|
89,643
|
|
|
Less: common stock held in treasury, at cost (Note 12) (364,681,000 shares and 336,620,000 shares)
|
22,684
|
|
|
19,891
|
|
|
Total shareholders’ equity
|
71,150
|
|
|
69,752
|
|
|
Total liabilities and shareholders’ equity
|
$
|
133,411
|
|
|
130,358
|
|
|
29
|
|
2015
|
|
2014
|
|
2013
|
||||
Sales to customers
|
$
|
70,074
|
|
|
74,331
|
|
|
71,312
|
|
Cost of products sold
|
21,536
|
|
|
22,746
|
|
|
22,342
|
|
|
Gross profit
|
48,538
|
|
|
51,585
|
|
|
48,970
|
|
|
Selling, marketing and administrative expenses
|
21,203
|
|
|
21,954
|
|
|
21,830
|
|
|
Research and development expense
|
9,046
|
|
|
8,494
|
|
|
8,183
|
|
|
In-process research and development
|
224
|
|
|
178
|
|
|
580
|
|
|
Interest income
|
(128
|
)
|
|
(67
|
)
|
|
(74
|
)
|
|
Interest expense, net of portion capitalized (Note 4)
|
552
|
|
|
533
|
|
|
482
|
|
|
Other (income) expense, net
|
(2,064
|
)
|
|
(70
|
)
|
|
2,498
|
|
|
Restructuring (Note 22)
|
509
|
|
|
—
|
|
|
—
|
|
|
Earnings before provision for taxes on income
|
19,196
|
|
|
20,563
|
|
|
15,471
|
|
|
Provision for taxes on income (Note 8)
|
3,787
|
|
|
4,240
|
|
|
1,640
|
|
|
Net earnings
|
$
|
15,409
|
|
|
16,323
|
|
|
13,831
|
|
|
|
|
|
|
|
||||
Net earnings per share (Notes 1 and 15)
|
|
|
|
|
|
||||
Basic
|
$
|
5.56
|
|
|
5.80
|
|
|
4.92
|
|
Diluted
|
$
|
5.48
|
|
|
5.70
|
|
|
4.81
|
|
Cash dividends per share
|
$
|
2.95
|
|
|
2.76
|
|
|
2.59
|
|
Average shares outstanding (Notes 1 and 15)
|
|
|
|
|
|
||||
Basic
|
2,771.8
|
|
|
2,815.2
|
|
|
2,809.2
|
|
|
Diluted
|
2,812.9
|
|
|
2,863.9
|
|
|
2,877.0
|
|
|
30
|
|
2015
|
|
2014
|
|
2013
|
||||
Net earnings
|
$
|
15,409
|
|
|
16,323
|
|
|
13,831
|
|
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||
Foreign currency translation
|
(3,632
|
)
|
|
(4,601
|
)
|
|
94
|
|
|
|
|
|
|
|
|
||||
Securities:
|
|
|
|
|
|
||||
Unrealized holding gain (loss) arising during period
|
471
|
|
|
156
|
|
|
225
|
|
|
Reclassifications to earnings
|
(124
|
)
|
|
(5
|
)
|
|
(314
|
)
|
|
Net change
|
347
|
|
|
151
|
|
|
(89
|
)
|
|
|
|
|
|
|
|
||||
Employee benefit plans:
|
|
|
|
|
|
||||
Prior service cost amortization during period
|
(21
|
)
|
|
(18
|
)
|
|
9
|
|
|
Prior service credit (cost) - current year
|
(39
|
)
|
|
211
|
|
|
(27
|
)
|
|
Gain amortization during period
|
624
|
|
|
400
|
|
|
515
|
|
|
Gain (loss) - current year
|
307
|
|
|
(4,098
|
)
|
|
2,203
|
|
|
Effect of exchange rates
|
148
|
|
|
197
|
|
|
8
|
|
|
Net change
|
1,019
|
|
|
(3,308
|
)
|
|
2,708
|
|
|
|
|
|
|
|
|
||||
Derivatives & hedges:
|
|
|
|
|
|
||||
Unrealized gain (loss) arising during period
|
(115
|
)
|
|
92
|
|
|
344
|
|
|
Reclassifications to earnings
|
(62
|
)
|
|
(196
|
)
|
|
(107
|
)
|
|
Net change
|
(177
|
)
|
|
(104
|
)
|
|
237
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income (loss)
|
(2,443
|
)
|
|
(7,862
|
)
|
|
2,950
|
|
|
|
|
|
|
|
|
||||
Comprehensive income
|
$
|
12,966
|
|
|
8,461
|
|
|
16,781
|
|
|
|
|
|
|
|
|
The tax effects in other comprehensive income for the fiscal years ended 2015, 2014 and 2013 respectively: Securities; $187 million, $81 million and $48 million, Employee Benefit Plans; $519 million, $1,556 million and $1,421 million, Derivatives & Hedges; $95 million, $56 million and $128 million.
|
|
|
31
|
|
Total
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Common Stock
Issued Amount
|
|
Treasury
Stock
Amount
|
||||||
Balance, December 30, 2012
|
$
|
64,826
|
|
|
85,992
|
|
|
(5,810
|
)
|
|
3,120
|
|
|
(18,476
|
)
|
Net earnings
|
13,831
|
|
|
13,831
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
|
(7,286
|
)
|
|
(7,286
|
)
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and stock option plans
|
3,285
|
|
|
(82
|
)
|
|
|
|
|
|
|
|
3,367
|
|
|
Repurchase of common stock
|
(3,538
|
)
|
|
(2,947
|
)
|
|
|
|
|
|
|
|
(591
|
)
|
|
Other
|
(15
|
)
|
|
(15
|
)
|
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax
|
2,950
|
|
|
|
|
2,950
|
|
|
|
|
|
|
|
||
Balance, December 29, 2013
|
74,053
|
|
|
89,493
|
|
|
(2,860
|
)
|
|
3,120
|
|
|
(15,700
|
)
|
|
Net earnings
|
16,323
|
|
|
16,323
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
|
(7,768
|
)
|
|
(7,768
|
)
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and stock option plans
|
2,164
|
|
|
(769
|
)
|
|
|
|
|
|
|
|
2,933
|
|
|
Repurchase of common stock
|
(7,124
|
)
|
|
|
|
|
|
|
|
|
|
|
(7,124
|
)
|
|
Other
|
(34
|
)
|
|
(34
|
)
|
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax
|
(7,862
|
)
|
|
|
|
|
(7,862
|
)
|
|
|
|
|
|
|
|
Balance, December 28, 2014
|
69,752
|
|
|
97,245
|
|
|
(10,722
|
)
|
|
3,120
|
|
|
(19,891
|
)
|
|
Net earnings
|
15,409
|
|
|
15,409
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
|
(8,173
|
)
|
|
(8,173
|
)
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and stock option plans
|
1,920
|
|
|
(577
|
)
|
|
|
|
|
|
|
|
2,497
|
|
|
Repurchase of common stock
|
(5,290
|
)
|
|
|
|
|
|
|
|
|
|
|
(5,290
|
)
|
|
Other
|
(25
|
)
|
|
(25
|
)
|
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax
|
(2,443
|
)
|
|
|
|
|
(2,443
|
)
|
|
|
|
|
|
|
|
Balance, January 3, 2016
|
$
|
71,150
|
|
|
103,879
|
|
|
(13,165
|
)
|
|
3,120
|
|
|
(22,684
|
)
|
|
32
|
|
2015
|
|
2014
|
|
2013
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
||
Net earnings
|
$
|
15,409
|
|
|
16,323
|
|
|
13,831
|
|
Adjustments to reconcile net earnings to cash flows from operating activities:
|
|
|
|
|
|
|
|
||
Depreciation and amortization of property and intangibles
|
3,746
|
|
|
3,895
|
|
|
4,104
|
|
|
Stock based compensation
|
874
|
|
|
792
|
|
|
728
|
|
|
Venezuela adjustments
|
122
|
|
|
87
|
|
|
108
|
|
|
Asset write-downs
|
624
|
|
|
410
|
|
|
739
|
|
|
Net gain on sale of assets/businesses
|
(2,583
|
)
|
|
(2,383
|
)
|
|
(113
|
)
|
|
Net gain on equity investment transactions
|
—
|
|
|
—
|
|
|
(417
|
)
|
|
Deferred tax provision
|
(270
|
)
|
|
441
|
|
|
(607
|
)
|
|
Accounts receivable allowances
|
18
|
|
|
(28
|
)
|
|
(131
|
)
|
|
Changes in assets and liabilities, net of effects from acquisitions and divestitures:
|
|
|
|
|
|
|
|
||
Increase in accounts receivable
|
(433
|
)
|
|
(247
|
)
|
|
(632
|
)
|
|
Increase in inventories
|
(449
|
)
|
|
(1,120
|
)
|
|
(622
|
)
|
|
(Decrease)/Increase in accounts payable and accrued liabilities
|
(3
|
)
|
|
955
|
|
|
1,821
|
|
|
Decrease/(Increase) in other current and non-current assets
|
65
|
|
|
442
|
|
|
(1,693
|
)
|
|
Increase/(Decrease) in other current and non-current liabilities
|
2,159
|
|
|
(1,096
|
)
|
|
298
|
|
|
Net cash flows from operating activities
|
19,279
|
|
|
18,471
|
|
|
17,414
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(3,463
|
)
|
|
(3,714
|
)
|
|
(3,595
|
)
|
|
Proceeds from the disposal of assets/businesses, net
|
3,464
|
|
|
4,631
|
|
|
458
|
|
|
Acquisitions, net of cash acquired (Note 20)
|
(954
|
)
|
|
(2,129
|
)
|
|
(835
|
)
|
|
Purchases of investments
|
(40,828
|
)
|
|
(34,913
|
)
|
|
(18,923
|
)
|
|
Sales of investments
|
34,149
|
|
|
24,119
|
|
|
18,058
|
|
|
Other (primarily intangibles)
|
(103
|
)
|
|
(299
|
)
|
|
(266
|
)
|
|
Net cash used by investing activities
|
(7,735
|
)
|
|
(12,305
|
)
|
|
(5,103
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|||
Dividends to shareholders
|
(8,173
|
)
|
|
(7,768
|
)
|
|
(7,286
|
)
|
|
Repurchase of common stock
|
(5,290
|
)
|
|
(7,124
|
)
|
|
(3,538
|
)
|
|
Proceeds from short-term debt
|
2,416
|
|
|
1,863
|
|
|
1,411
|
|
|
Retirement of short-term debt
|
(1,044
|
)
|
|
(1,267
|
)
|
|
(1,397
|
)
|
|
Proceeds from long-term debt
|
75
|
|
|
2,098
|
|
|
3,607
|
|
|
Retirement of long-term debt
|
(68
|
)
|
|
(1,844
|
)
|
|
(1,593
|
)
|
|
Proceeds from the exercise of stock options/excess tax benefits
|
1,295
|
|
|
1,782
|
|
|
2,649
|
|
|
Other
|
(57
|
)
|
|
—
|
|
|
56
|
|
|
Net cash used by financing activities
|
(10,846
|
)
|
|
(12,260
|
)
|
|
(6,091
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
(1,489
|
)
|
|
(310
|
)
|
|
(204
|
)
|
|
(Decrease)/Increase in cash and cash equivalents
|
(791
|
)
|
|
(6,404
|
)
|
|
6,016
|
|
|
Cash and cash equivalents, beginning of year (Note 1)
|
14,523
|
|
|
20,927
|
|
|
14,911
|
|
|
Cash and cash equivalents, end of year (Note 1)
|
$
|
13,732
|
|
|
14,523
|
|
|
20,927
|
|
|
|
|
|
|
|
||||
Supplemental cash flow data
|
|
|
|
|
|
|
|
|
|
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
|
Interest
|
$
|
617
|
|
|
603
|
|
|
596
|
|
Interest, net of amount capitalized
|
515
|
|
|
488
|
|
|
491
|
|
|
Income taxes
|
2,865
|
|
|
3,536
|
|
|
3,155
|
|
|
|
|
|
|
|
|
|
33
|
Supplemental schedule of non-cash investing and financing activities
|
|
|
|
|
|
|
|
|
|
Treasury stock issued for employee compensation and stock option plans, net of cash proceeds
|
1,196
|
|
|
1,170
|
|
|
743
|
|
|
Conversion of debt
|
16
|
|
|
17
|
|
|
22
|
|
|
|
|
|
|
|
|
||||
Acquisitions
|
|
|
|
|
|
|
|
|
|
Fair value of assets acquired
|
$
|
1,174
|
|
|
2,167
|
|
|
1,028
|
|
Fair value of liabilities assumed and noncontrolling interests
|
(220
|
)
|
|
(38
|
)
|
|
(193
|
)
|
|
Net cash paid for acquisitions
|
$
|
954
|
|
|
2,129
|
|
|
835
|
|
|
34
|
1.
|
Summary of Significant Accounting Policies
|
|
35
|
|
36
|
Building and building equipment
|
20 - 30 years
|
Land and leasehold improvements
|
10 - 20 years
|
Machinery and equipment
|
2 - 13 years
|
|
37
|
|
38
|
Nature/Type of Collaboration
|
|
Statement of Earnings Presentation
|
Third-party sale of product
|
|
Sales to customers
|
Royalties/milestones paid to collaborative partner (post-regulatory approval)*
|
|
Cost of products sold
|
Royalties received from collaborative partner
|
|
Other income (expense), net
|
Upfront payments & milestones paid to collaborative partner (pre-regulatory approval)
|
|
Research and development expense
|
Research and development payments to collaborative partner
|
|
Research and development expense
|
Research and development payments received from collaborative partner
|
|
Reduction of Research and development expense
|
*
|
Milestones are capitalized as intangible assets and amortized to cost of goods sold over the useful life.
|
|
39
|
|
40
|
2.
|
Cash, Cash Equivalents and Current Marketable Securities
|
(Dollars in Millions)
|
|
2015
|
||||||||||||||||||
|
|
Carrying Amount
|
|
Unrecognized Gain
|
|
Unrecognized Loss
|
|
Estimated Fair Value
|
|
Cash Equivalents
|
|
Current Marketable Securities
|
||||||||
Cash
|
|
$
|
1,832
|
|
|
—
|
|
|
—
|
|
|
1,832
|
|
|
1,832
|
|
|
—
|
|
|
U.S. Gov't Securities
(1)
|
|
14,641
|
|
|
1
|
|
|
(2
|
)
|
|
14,640
|
|
|
650
|
|
|
13,991
|
|
||
Other Sovereign Securities
(1)
|
|
2,122
|
|
|
—
|
|
|
—
|
|
|
2,122
|
|
|
933
|
|
|
1,189
|
|
||
U.S. Reverse repurchase agreements
(1)
|
|
1,579
|
|
|
—
|
|
|
—
|
|
|
1,579
|
|
|
1,579
|
|
|
—
|
|
||
Other Reverse repurchase agreements
(1)
|
|
2,200
|
|
|
—
|
|
|
—
|
|
|
2,200
|
|
|
2,200
|
|
|
—
|
|
||
Corporate debt securities
(1)
|
|
2,941
|
|
|
—
|
|
|
—
|
|
|
2,941
|
|
|
1,793
|
|
|
1,148
|
|
||
Money market funds
|
|
3,855
|
|
|
—
|
|
|
—
|
|
|
3,855
|
|
|
3,855
|
|
|
—
|
|
||
Time deposits
(1)
|
|
890
|
|
|
—
|
|
|
—
|
|
|
890
|
|
|
890
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Carrying Amount
|
|
Unrealized Gain
|
|
Unrealized Loss
|
|
Estimated Fair Value
|
|
|
|
|
||||||||
Gov't Securities
|
|
7,307
|
|
|
1
|
|
|
(34
|
)
|
|
7,274
|
|
|
—
|
|
|
7,274
|
|
||
Corporate debt securities
|
|
1,046
|
|
|
1
|
|
|
(5
|
)
|
|
1,042
|
|
|
—
|
|
|
1,042
|
|
||
Available for Sale
(2)
|
|
$
|
8,353
|
|
|
2
|
|
|
(39
|
)
|
|
8,316
|
|
|
—
|
|
|
8,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total cash, cash equivalents and current marketable securities
|
|
|
|
|
|
|
|
|
|
|
$
|
13,732
|
|
|
24,644
|
|
(Dollars in Millions)
|
|
2014
|
||||||||||||||||||
|
|
Carrying Amount
|
|
Unrecognized Gain
|
|
Unrecognized Loss
|
|
Estimated Fair Value
|
|
Cash Equivalents
|
|
Current Marketable Securities
|
||||||||
Cash
|
|
$
|
2,336
|
|
|
—
|
|
|
—
|
|
|
2,336
|
|
|
2,336
|
|
|
—
|
|
|
U.S. Gov't Securities
(1)
|
|
16,345
|
|
|
1
|
|
|
(1
|
)
|
|
16,345
|
|
|
1,950
|
|
|
14,395
|
|
||
Other Sovereign Securities
(1)
|
|
4,265
|
|
|
—
|
|
|
—
|
|
|
4,265
|
|
|
978
|
|
|
3,287
|
|
||
U.S. Reverse repurchase agreements
(1)
|
|
4,387
|
|
|
—
|
|
|
—
|
|
|
4,387
|
|
|
4,387
|
|
|
—
|
|
||
Other Reverse repurchase agreements
(1)
|
|
2,348
|
|
|
—
|
|
|
—
|
|
|
2,348
|
|
|
2,348
|
|
|
—
|
|
||
Corporate debt securities
(1)
|
|
1,343
|
|
|
—
|
|
|
—
|
|
|
1,343
|
|
|
459
|
|
|
884
|
|
||
Money market funds
|
|
1,352
|
|
|
—
|
|
|
—
|
|
|
1,352
|
|
|
1,352
|
|
|
—
|
|
||
Time deposits
(1)
|
|
$
|
713
|
|
|
—
|
|
|
—
|
|
|
713
|
|
|
713
|
|
|
—
|
|
|
Total cash, cash equivalents and current marketable securities
|
|
|
|
|
|
|
|
|
|
$
|
14,523
|
|
|
18,566
|
|
|
41
|
3.
|
Inventories
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|||
Raw materials and supplies
|
|
$
|
936
|
|
|
1,214
|
|
Goods in process
|
|
2,241
|
|
|
2,461
|
|
|
Finished goods
|
|
4,876
|
|
|
4,509
|
|
|
Total inventories
|
|
$
|
8,053
|
|
|
8,184
|
|
4.
|
Property, Plant and Equipment
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|||
Land and land improvements
|
|
$
|
780
|
|
|
833
|
|
Buildings and building equipment
|
|
9,829
|
|
|
10,046
|
|
|
Machinery and equipment
|
|
22,511
|
|
|
22,206
|
|
|
Construction in progress
|
|
3,528
|
|
|
3,600
|
|
|
Total property, plant and equipment, gross
|
|
$
|
36,648
|
|
|
36,685
|
|
Less accumulated depreciation
|
|
20,743
|
|
|
20,559
|
|
|
Total property, plant and equipment, net
|
|
$
|
15,905
|
|
|
16,126
|
|
5.
|
Intangible Assets and Goodwill
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|||
Intangible assets with definite lives:
|
|
|
|
|
|
|
|
Patents and trademarks — gross
|
|
$
|
8,299
|
|
|
9,074
|
|
Less accumulated amortization
|
|
4,745
|
|
|
4,700
|
|
|
Patents and trademarks — net
|
|
$
|
3,554
|
|
|
4,374
|
|
Customer relationships and other intangibles — gross
|
|
$
|
17,583
|
|
|
17,970
|
|
Less accumulated amortization
|
|
5,816
|
|
|
5,227
|
|
|
Customer relationships and other intangibles — net
|
|
$
|
11,767
|
|
|
12,743
|
|
Intangible assets with indefinite lives:
|
|
|
|
|
|
|
|
Trademarks
|
|
$
|
7,023
|
|
|
7,263
|
|
Purchased in-process research and development
|
|
3,420
|
|
|
2,842
|
|
|
Total intangible assets with indefinite lives
|
|
$
|
10,443
|
|
|
10,105
|
|
Total intangible assets — net
|
|
$
|
25,764
|
|
|
27,222
|
|
|
42
|
(Dollars in Millions)
|
|
Consumer
|
|
Pharmaceutical
|
|
Med Devices
|
|
Total
|
|||||
Goodwill at December 29, 2013
|
|
$
|
8,531
|
|
|
2,068
|
|
|
12,199
|
|
|
22,798
|
|
Goodwill, related to acquisitions
|
|
13
|
|
|
665
|
|
|
—
|
|
|
678
|
|
|
Goodwill, related to divestitures
|
|
(138
|
)
|
|
—
|
|
|
(603
|
)
|
|
(741
|
)
|
|
Currency translation/other
|
|
(731
|
)
|
|
(107
|
)
|
|
(65
|
)
|
|
(903
|
)
|
|
Goodwill at December 28, 2014
|
|
$
|
7,675
|
|
|
2,626
|
|
|
11,531
|
|
|
21,832
|
|
Goodwill, related to acquisitions
|
|
110
|
|
|
366
|
|
|
34
|
|
|
510
|
|
|
Goodwill, related to divestitures
|
|
(119
|
)
|
|
(17
|
)
|
|
(57
|
)
|
|
(193
|
)
|
|
Currency translation/other
|
|
(426
|
)
|
|
(86
|
)
|
|
(8
|
)
|
|
(520
|
)
|
|
Goodwill at January 3, 2016
|
|
$
|
7,240
|
|
|
2,889
|
|
|
11,500
|
|
|
21,629
|
|
6.
|
Fair Value Measurements
|
|
43
|
(Dollars in Millions)
|
|
Gain/(Loss)
Recognized In Accumulated OCI (1) |
|
Gain/(Loss) Reclassified From
Accumulated OCI Into Income (1) |
|
Gain/(Loss) Recognized In
Other Income/Expense (2) |
|||||||||||||
Cash Flow Hedges by Income Statement Caption
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||
Sales to customers
(3)
|
|
$
|
(83
|
)
|
|
(106
|
)
|
|
(126
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(5
|
)
|
Cost of products sold
(3)
|
|
(22
|
)
|
|
58
|
|
|
122
|
|
|
204
|
|
|
14
|
|
|
2
|
|
|
Research and development expense
(3)
|
|
(3
|
)
|
|
39
|
|
|
6
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
Interest (income)/Interest expense, net
(4)
|
|
(40
|
)
|
|
21
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
Other (income) expense, net
(3)
|
|
33
|
|
|
80
|
|
|
60
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
Total
|
|
$
|
(115
|
)
|
|
92
|
|
|
62
|
|
|
196
|
|
|
11
|
|
|
(3
|
)
|
(1)
|
Effective portion
|
(2)
|
Ineffective portion
|
(3)
|
Forward foreign exchange contracts
|
(4)
|
Cross currency interest rate swaps
|
|
44
|
|
|
2015
|
|
2014
|
||||||||||||
(Dollars in Millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total
(1)
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange contracts
(7)
|
|
$
|
—
|
|
|
452
|
|
|
—
|
|
|
452
|
|
|
996
|
|
Interest rate contracts
(2)(4)(7)
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
31
|
|
|
Total
|
|
—
|
|
|
480
|
|
|
—
|
|
|
480
|
|
|
1,027
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange contracts
(8)
|
|
—
|
|
|
358
|
|
|
—
|
|
|
358
|
|
|
751
|
|
|
Interest rate contracts
(3)(4)(8)
|
|
—
|
|
|
241
|
|
|
—
|
|
|
241
|
|
|
8
|
|
|
Total
|
|
—
|
|
|
599
|
|
|
—
|
|
|
599
|
|
|
759
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange contracts
(7)
|
|
—
|
|
|
33
|
|
|
—
|
|
|
33
|
|
|
29
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange contracts
(8)
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
51
|
|
|
Available For Sale Other Investments:
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity investments
(5)
|
|
1,494
|
|
|
—
|
|
|
—
|
|
|
1,494
|
|
|
679
|
|
|
Debt securities
(6)
|
|
$
|
—
|
|
|
8,316
|
|
|
—
|
|
|
8,316
|
|
|
—
|
|
(1)
|
2014 assets and liabilities are all classified as Level 2 with the exception of equity investments of
$679 million
, which are classified as Level 1.
|
(2)
|
Includes
$20 million
and
$29 million
of non-current assets for the fiscal years ending
January 3, 2016
and
December 28, 2014
, respectively.
|
(3)
|
Includes
$239 million
and
$8 million
of non-current liabilities for the fiscal years ending
January 3, 2016
and
December 28, 2014
, respectively.
|
(4)
|
Includes cross currency interest rate swaps and interest rate swaps.
|
(5)
|
Classified as non-current other assets. The carrying amount of the equity investments were
$528 million
and
$284 million
as of
January 3, 2016
and December 28, 2014, respectively. The unrealized gains were
$979 million
and
$406 million
as of
January 3, 2016
and December 28, 2014, respectively. The unrealized losses were
$13 million
and
$11 million
as of
January 3, 2016
and December 28, 2014, respectively.
|
(6)
|
Classified as current marketable securities.
|
(7)
|
Classified as other current assets.
|
(8)
|
Classified as accounts payable.
|
|
45
|
7.
|
Borrowings
|
(Dollars in Millions)
|
|
2015
|
|
Effective Rate %
|
|
2014
|
|
Effective Rate %
|
|
|||||
2.15% Notes due 2016
|
|
$
|
900
|
|
|
2.22
|
%
|
|
898
|
|
|
2.22
|
|
|
3 month LIBOR+0.07% FRN due 2016
|
|
800
|
|
|
0.48
|
|
|
800
|
|
|
0.31
|
|
||
0.70% Notes due 2016
|
|
398
|
|
|
0.74
|
|
|
398
|
|
|
0.74
|
|
||
5.55% Debentures due 2017
|
|
1,000
|
|
|
5.55
|
|
|
1,000
|
|
|
5.55
|
|
||
1.125% Notes due 2017
|
|
700
|
|
|
1.15
|
|
|
697
|
|
|
1.15
|
|
||
5.15% Debentures due 2018
|
|
899
|
|
|
5.15
|
|
|
898
|
|
|
5.15
|
|
||
1.65% Notes due 2018
|
|
602
|
|
|
1.70
|
|
|
597
|
|
|
1.70
|
|
||
4.75% Notes due 2019 (1B Euro 1.0882)
(2)
/
(1B Euro 1.2199)
(3)
|
|
1,085
|
|
(2)
|
5.83
|
|
|
1,216
|
|
(3)
|
5.83
|
|
||
1.875% Notes due 2019
|
|
502
|
|
|
1.93
|
|
|
497
|
|
|
1.93
|
|
||
3% Zero Coupon Convertible Subordinated Debentures due 2020
|
|
137
|
|
|
3.00
|
|
|
158
|
|
|
3.00
|
|
||
2.95% Debentures due 2020
|
|
545
|
|
|
3.15
|
|
|
543
|
|
|
3.15
|
|
||
3.55% Notes due 2021
|
|
448
|
|
|
3.67
|
|
|
446
|
|
|
3.67
|
|
||
2.45% Notes due 2021
|
|
349
|
|
|
2.48
|
|
|
349
|
|
|
2.48
|
|
||
6.73% Debentures due 2023
|
|
250
|
|
|
6.73
|
|
|
250
|
|
|
6.73
|
|
||
3.375% Notes due 2023
|
|
811
|
|
|
3.17
|
|
|
812
|
|
|
3.17
|
|
||
5.50% Notes due 2024 (500MM GBP 1.4818)
(2)
/(500MM GBP 1.5542)
(3)
|
|
737
|
|
(2)
|
6.75
|
|
|
772
|
|
(3)
|
6.75
|
|
||
6.95% Notes due 2029
|
|
297
|
|
|
7.14
|
|
|
297
|
|
|
7.14
|
|
||
4.95% Debentures due 2033
|
|
500
|
|
|
4.95
|
|
|
500
|
|
|
4.95
|
|
||
4.375% Notes due 2033
|
|
864
|
|
|
4.24
|
|
|
865
|
|
|
4.23
|
|
||
5.95% Notes due 2037
|
|
996
|
|
|
5.99
|
|
|
995
|
|
|
5.99
|
|
||
5.85% Debentures due 2038
|
|
700
|
|
|
5.86
|
|
|
700
|
|
|
5.86
|
|
||
4.50% Debentures due 2040
|
|
540
|
|
|
4.63
|
|
|
539
|
|
|
4.63
|
|
||
4.85% Notes due 2041
|
|
298
|
|
|
4.89
|
|
|
298
|
|
|
4.89
|
|
||
4.50% Notes due 2043
|
|
499
|
|
|
4.52
|
|
|
499
|
|
|
4.52
|
|
||
Other
|
|
104
|
|
|
—
|
|
|
105
|
|
|
—
|
|
||
Subtotal
|
|
14,961
|
|
(4)
|
4.06
|
%
|
(1)
|
15,129
|
|
(4)
|
4.08
|
(1
|
)
|
|
Less current portion
|
|
2,104
|
|
|
|
|
|
7
|
|
|
|
|
||
Total long-term debt
|
|
$
|
12,857
|
|
|
|
|
|
15,122
|
|
|
|
|
(1)
|
Weighted average effective rate.
|
(2)
|
Translation rate at
January 3, 2016
.
|
(3)
|
Translation rate at
December 28, 2014
.
|
(4)
|
The excess of the fair value over the carrying value of debt was
$1.7 billion
in
2015
and
$2.2 billion
in
2014
.
|
|
46
|
(Dollars in Millions)
|
|
|
|
|
|
|
|
|
||
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
After 2020
|
$2,104
|
|
1,790
|
|
1,501
|
|
1,587
|
|
683
|
|
7,296
|
8.
|
Income Taxes
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
||||
Currently payable:
|
|
|
|
|
|
|
||||
U.S. taxes
|
|
$
|
2,748
|
|
|
2,625
|
|
|
594
|
|
International taxes
|
|
1,309
|
|
|
1,174
|
|
|
1,653
|
|
|
Total currently payable
|
|
4,057
|
|
|
3,799
|
|
|
2,247
|
|
|
Deferred:
|
|
|
|
|
|
|
||||
U.S. taxes
|
|
37
|
|
|
(258
|
)
|
|
(251
|
)
|
|
International taxes
|
|
(307
|
)
|
|
699
|
|
|
(356
|
)
|
|
Total deferred
|
|
(270
|
)
|
|
441
|
|
|
(607
|
)
|
|
Provision for taxes on income
|
|
$
|
3,787
|
|
|
4,240
|
|
|
1,640
|
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
||||
U.S.
|
|
$
|
8,179
|
|
|
8,001
|
|
|
4,261
|
|
|
International
|
|
11,017
|
|
|
12,562
|
|
|
11,210
|
|
|
|
Earnings before taxes on income:
|
|
$
|
19,196
|
|
|
20,563
|
|
|
15,471
|
|
|
Tax rates:
|
|
|
|
|
|
|
|
||||
U.S. statutory rate
|
|
35.0
|
%
|
|
35.0
|
|
|
35.0
|
|
|
|
International operations excluding Ireland
|
|
(6.7
|
)
|
|
(7.0
|
)
|
|
(10.6
|
)
|
|
|
Ireland and Puerto Rico operations
(1)
|
|
(8.7
|
)
|
|
(6.9
|
)
|
|
(9.0
|
)
|
|
|
Research and orphan drug tax credits
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.8
|
)
|
|
|
U.S. state and local
|
|
0.4
|
|
|
1.0
|
|
|
0.4
|
|
|
|
U.S. manufacturing deduction
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(0.8
|
)
|
|
|
U.S. tax on international income
|
|
0.2
|
|
|
1.4
|
|
|
1.7
|
|
|
|
U.S. tax benefit on asset/business disposals
|
|
—
|
|
|
(1.9
|
)
|
|
(5.1
|
)
|
|
|
All other
|
|
0.3
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
|
Effective tax rate
|
|
19.7
|
%
|
|
20.6
|
|
|
10.6
|
|
|
|
47
|
|
|
2015 Deferred Tax
|
|
2014 Deferred Tax
|
|||||||||
(Dollars in Millions)
|
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
|||||
Employee related obligations
|
|
$
|
2,863
|
|
|
|
|
|
3,426
|
|
|
|
|
Stock based compensation
|
|
790
|
|
|
|
|
|
799
|
|
|
|
|
|
Depreciation
|
|
|
|
|
(247
|
)
|
|
|
|
|
(564
|
)
|
|
Non-deductible intangibles
|
|
|
|
|
(6,663
|
)
|
|
|
|
|
(6,671
|
)
|
|
International R&D capitalized for tax
|
|
1,318
|
|
|
|
|
|
1,433
|
|
|
|
|
|
Reserves & liabilities
|
|
1,801
|
|
|
|
|
|
1,497
|
|
|
|
|
|
Income reported for tax purposes
|
|
960
|
|
|
|
|
|
1,067
|
|
|
|
|
|
Net operating loss carryforward international
|
|
997
|
|
|
|
|
|
949
|
|
|
|
|
|
Miscellaneous international
|
|
922
|
|
(1)
|
(249
|
)
|
|
1,128
|
|
(1)
|
(305
|
)
|
|
Miscellaneous U.S.
|
|
436
|
|
|
|
|
|
996
|
|
|
|
|
|
Total deferred income taxes
|
|
$
|
10,087
|
|
|
(7,159
|
)
|
|
11,295
|
|
|
(7,540
|
)
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
||||
Beginning of year
|
|
$
|
2,465
|
|
|
2,729
|
|
|
3,054
|
|
Increases related to current year tax positions
|
|
570
|
|
|
281
|
|
|
643
|
|
|
Increases related to prior period tax positions
|
|
182
|
|
|
295
|
|
|
80
|
|
|
Decreases related to prior period tax positions
|
|
(79
|
)
|
|
(288
|
)
|
|
(574
|
)
|
|
Settlements
|
|
(4
|
)
|
|
(477
|
)
|
|
(418
|
)
|
|
Lapse of statute of limitations
|
|
(54
|
)
|
|
(75
|
)
|
|
(56
|
)
|
|
End of year
|
|
$
|
3,080
|
|
|
2,465
|
|
|
2,729
|
|
|
48
|
9.
|
Employee Related Obligations
|
(Dollars in Millions)
|
|
2015
|
|
2014
|
|||
Pension benefits
|
|
$
|
3,857
|
|
|
4,547
|
|
Postretirement benefits
|
|
2,738
|
|
|
3,161
|
|
|
Postemployment benefits
|
|
2,092
|
|
|
2,062
|
|
|
Deferred compensation
|
|
584
|
|
|
599
|
|
|
Total employee obligations
|
|
9,271
|
|
|
10,369
|
|
|
Less current benefits payable
|
|
417
|
|
|
397
|
|
|
Employee related obligations — non-current
|
|
$
|
8,854
|
|
|
9,972
|
|
10.
|
Pensions and Other Benefit Plans
|
|
|
Retirement Plans
|
|
Other Benefit Plans
|
|||||||||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
|||||||
Service cost
|
|
$
|
1,037
|
|
|
882
|
|
|
906
|
|
|
257
|
|
|
211
|
|
|
196
|
|
Interest cost
|
|
988
|
|
|
1,018
|
|
|
908
|
|
|
186
|
|
|
197
|
|
|
151
|
|
|
Expected return on plan assets
|
|
(1,809
|
)
|
|
(1,607
|
)
|
|
(1,447
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
(6
|
)
|
|
Amortization of prior service cost (credit)
|
|
2
|
|
|
6
|
|
|
6
|
|
|
(33
|
)
|
|
(34
|
)
|
|
(2
|
)
|
|
Amortization of net transition obligation
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Recognized actuarial losses
|
|
745
|
|
|
460
|
|
|
681
|
|
|
201
|
|
|
136
|
|
|
111
|
|
|
Curtailments and settlements
|
|
8
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Net periodic benefit cost
|
|
$
|
971
|
|
|
743
|
|
|
1,055
|
|
|
604
|
|
|
503
|
|
|
452
|
|
|
49
|
|
|
Retirement Plans
|
|
Other Benefit Plans
|
|||||||||
Worldwide Benefit Plans
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
|
Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
3.78
|
%
|
|
4.78
|
|
4.25
|
|
4.31
|
|
5.25
|
|
4.55
|
Rate of increase in compensation levels
|
|
4.05
|
%
|
|
4.08
|
|
4.08
|
|
4.11
|
|
4.29
|
|
4.28
|
Expected long-term rate of return on plan assets
|
|
8.53
|
%
|
|
8.46
|
|
8.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit Obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
4.11
|
%
|
|
3.78
|
|
4.78
|
|
4.63
|
|
4.31
|
|
5.25
|
Rate of increase in compensation levels
|
|
4.01
|
%
|
|
4.05
|
|
4.08
|
|
4.28
|
|
4.11
|
|
4.29
|
|
50
|
Health Care Plans
|
|
2015
|
|
2014
|
||
Health care cost trend rate assumed for next year
|
|
6.60
|
%
|
|
6.00
|
%
|
Rate to which the cost trend rate is assumed to decline (ultimate trend)
|
|
4.50
|
%
|
|
4.50
|
%
|
Year the rate reaches the ultimate trend rate
|
|
2038
|
|
|
2032
|
|
|
|
One-Percentage-
|
|
One-Percentage-
|
|||
(Dollars in Millions)
|
|
Point Increase
|
|
Point Decrease
|
|||
Health Care Plans
|
|
|
|
|
|
|
|
Total interest and service cost
|
|
$
|
36
|
|
|
(29
|
)
|
Post-retirement benefit obligation
|
|
$
|
417
|
|
|
(326
|
)
|
|
51
|
|
|
Retirement Plans
|
|
Other Benefit Plans
|
|||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
|
|||||
Projected benefit obligation — beginning of year
|
|
$
|
26,889
|
|
|
21,488
|
|
|
5,081
|
|
|
4,407
|
|
Service cost
|
|
1,037
|
|
|
882
|
|
|
257
|
|
|
211
|
|
|
Interest cost
|
|
988
|
|
|
1,018
|
|
|
186
|
|
|
197
|
|
|
Plan participant contributions
|
|
48
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
Amendments
|
|
60
|
|
|
(60
|
)
|
|
—
|
|
|
(254
|
)
|
|
Actuarial (gains) losses
|
|
(1,578
|
)
|
|
5,395
|
|
|
(400
|
)
|
|
1,030
|
|
|
Divestitures & acquisitions
|
|
(5
|
)
|
|
(121
|
)
|
|
—
|
|
|
—
|
|
|
Curtailments, settlements & restructuring
|
|
(20
|
)
|
|
(53
|
)
|
|
(3
|
)
|
|
—
|
|
|
Benefits paid from plan
|
|
(773
|
)
|
|
(813
|
)
|
|
(420
|
)
|
|
(493
|
)
|
|
Effect of exchange rates
|
|
(791
|
)
|
|
(906
|
)
|
|
(32
|
)
|
|
(17
|
)
|
|
Projected benefit obligation — end of year
|
|
$
|
25,855
|
|
|
26,889
|
|
|
4,669
|
|
|
5,081
|
|
Change in Plan Assets
|
|
|
|
|
|
|
|
|
|||||
Plan assets at fair value — beginning of year
|
|
$
|
22,575
|
|
|
20,901
|
|
|
79
|
|
|
87
|
|
Actual return on plan assets
|
|
298
|
|
|
2,078
|
|
|
1
|
|
|
8
|
|
|
Company contributions
|
|
752
|
|
|
1,176
|
|
|
414
|
|
|
477
|
|
|
Plan participant contributions
|
|
48
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
Settlements
|
|
(20
|
)
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
Divestitures & acquisitions
|
|
(5
|
)
|
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
Benefits paid from plan assets
|
|
(773
|
)
|
|
(813
|
)
|
|
(420
|
)
|
|
(493
|
)
|
|
Effect of exchange rates
|
|
(621
|
)
|
|
(677
|
)
|
|
—
|
|
|
—
|
|
|
Plan assets at fair value — end of year
|
|
$
|
22,254
|
|
|
22,575
|
|
|
74
|
|
|
79
|
|
Funded status — end of year
|
|
$
|
(3,601
|
)
|
|
(4,314
|
)
|
|
(4,595
|
)
|
|
(5,002
|
)
|
Amounts Recognized in the Company’s Balance Sheet consist of the following:
|
|
|
|
|
|
|
|
|
|||||
Non-current assets
|
|
$
|
256
|
|
|
233
|
|
|
—
|
|
|
—
|
|
Current liabilities
|
|
(77
|
)
|
|
(74
|
)
|
|
(324
|
)
|
|
(309
|
)
|
|
Non-current liabilities
|
|
(3,780
|
)
|
|
(4,473
|
)
|
|
(4,271
|
)
|
|
(4,693
|
)
|
|
Total recognized in the consolidated balance sheet — end of year
|
|
$
|
(3,601
|
)
|
|
(4,314
|
)
|
|
(4,595
|
)
|
|
(5,002
|
)
|
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
|
|
|
|
|
|
|
|
|
|||||
Net actuarial loss
|
|
$
|
6,501
|
|
|
7,547
|
|
|
2,013
|
|
|
2,611
|
|
Prior service cost (credit)
|
|
34
|
|
|
(33
|
)
|
|
(185
|
)
|
|
(225
|
)
|
|
Unrecognized net transition obligation
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Total before tax effects
|
|
$
|
6,535
|
|
|
7,515
|
|
|
1,828
|
|
|
2,386
|
|
|
|
|
|
|
|
|
|
|
|||||
Accumulated Benefit Obligations — end of year
|
|
$
|
23,262
|
|
|
23,816
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
52
|
|
|
Retirement Plans
|
|
Other Benefit Plans
|
|||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|||||
Net periodic benefit cost
|
|
$
|
971
|
|
|
743
|
|
|
604
|
|
|
503
|
|
Net actuarial (gain) loss
|
|
(75
|
)
|
|
4,942
|
|
|
(389
|
)
|
|
1,015
|
|
|
Amortization of net actuarial loss
|
|
(745
|
)
|
|
(460
|
)
|
|
(201
|
)
|
|
(136
|
)
|
|
Prior service cost (credit)
|
|
60
|
|
|
(60
|
)
|
|
—
|
|
|
(253
|
)
|
|
Amortization of prior service (cost) credit
|
|
(2
|
)
|
|
(6
|
)
|
|
33
|
|
|
34
|
|
|
Effect of exchange rates
|
|
(218
|
)
|
|
(273
|
)
|
|
(1
|
)
|
|
—
|
|
|
Total recognized in other comprehensive income, before tax
|
|
$
|
(980
|
)
|
|
4,143
|
|
|
(558
|
)
|
|
660
|
|
Total recognized in net periodic benefit cost and other comprehensive income
|
|
$
|
(9
|
)
|
|
4,886
|
|
|
46
|
|
|
1,163
|
|
|
U.S. Plans
|
International Plans
|
|||||||||||||||
|
Qualified Plans
|
Non-Qualified Plans
|
Funded Plans
|
Unfunded Plans
|
|||||||||||||
(Dollars in Millions)
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||
Plan Assets
|
$
|
15,113
|
|
15,201
|
|
—
|
|
—
|
|
7,141
|
|
7,374
|
|
—
|
|
—
|
|
Projected Benefit Obligation
|
15,280
|
|
15,571
|
|
1,675
|
|
1,683
|
|
8,542
|
|
9,203
|
|
358
|
|
432
|
|
|
Accumulated Benefit Obligation
|
13,876
|
|
13,875
|
|
1,411
|
|
1,363
|
|
7,661
|
|
8,205
|
|
314
|
|
373
|
|
|
Over (Under) Funded Status
|
|
|
|
|
|
|
|
|
|||||||||
Projected Benefit Obligation
|
$
|
(167
|
)
|
(370
|
)
|
(1,675
|
)
|
(1,683
|
)
|
(1,401
|
)
|
(1,829
|
)
|
(358
|
)
|
(432
|
)
|
Accumulated Benefit Obligation
|
1,237
|
|
1,326
|
|
(1,411
|
)
|
(1,363
|
)
|
(520
|
)
|
(831
|
)
|
(314
|
)
|
(373
|
)
|
(Dollars in Millions)
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021-2025
|
|||||||
Projected future benefit payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Retirement plans
|
|
$
|
839
|
|
|
872
|
|
|
911
|
|
|
967
|
|
|
1,031
|
|
|
6,098
|
|
Other benefit plans
|
|
$
|
331
|
|
|
322
|
|
|
315
|
|
|
312
|
|
|
310
|
|
|
1,499
|
|
(Dollars in Millions)
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021-2025
|
|||||||
Projected future contributions
|
|
$
|
76
|
|
|
77
|
|
|
82
|
|
|
88
|
|
|
93
|
|
|
559
|
|
|
53
|
|
|
Percent of
Plan Assets
|
|
Target
Allocation
|
|||||
|
|
2015
|
|
2014
|
|
2016
|
|||
Worldwide Retirement Plans
|
|
|
|
|
|
|
|||
Equity securities
|
|
79
|
%
|
|
77
|
%
|
|
74
|
%
|
Debt securities
|
|
21
|
|
|
23
|
|
|
26
|
|
Total plan assets
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
•
|
Short-term investments
— Cash and quoted short-term instruments are valued at the closing price or the amount held on deposit by the custodian bank. Other investments are through investment vehicles valued using the Net Asset Value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The NAV is a quoted price in a market that is not active and classified as Level 2.
|
•
|
Government and agency securities
— A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are available in an active market, the investments are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. When quoted market prices for a security are not available in an active market, they are classified as Level 2.
|
•
|
Debt instruments
— A limited number of these investments are valued at the closing price reported on the major market on which the individual securities are traded. Where quoted prices are available in an active market, the investments are classified as Level 1. If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows and are classified as Level 2. Level 3 debt instruments are priced based on unobservable inputs.
|
•
|
Equity securities
— Common stocks are valued at the closing price reported on the major market on which the individual securities are traded. Substantially all common stock is classified within Level 1 of the valuation hierarchy.
|
•
|
Commingled funds
— These investment vehicles are valued using the NAV provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. Assets in the Level 2 category have a quoted market price in a market that is not active.
|
|
54
|
•
|
Insurance contracts
— The instruments are issued by insurance companies. The fair value is based on negotiated value and the underlying investments held in separate account portfolios as well as considering the credit worthiness of the issuer. The underlying investments are government, asset-backed and fixed income securities. In general, insurance contracts are classified as Level 3 as there are no quoted prices nor other observable inputs for pricing.
|
•
|
Other assets
— Other assets are represented primarily by limited partnerships and real estate investments, as well as commercial loans and commercial mortgages that are not classified as corporate debt. Other assets that are exchange listed and actively traded are classified as Level 1, while inactively traded assets are classified as Level 2. Most limited partnerships represent investments in private equity and similar funds that are valued by the general partners. Certain of these limited partnerships, as well as any other assets valued using unobservable inputs, are classified as Level 3.
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
|
|
|||||||||||||||
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total Assets
|
|||||||||||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||||
Short-term investment funds
|
|
$
|
184
|
|
|
168
|
|
|
312
|
|
|
551
|
|
|
—
|
|
|
—
|
|
|
496
|
|
|
719
|
|
Government and agency securities
|
|
—
|
|
|
—
|
|
|
1,767
|
|
|
1,934
|
|
|
—
|
|
|
—
|
|
|
1,767
|
|
|
1,934
|
|
|
Debt instruments
|
|
—
|
|
|
—
|
|
|
1,050
|
|
|
1,143
|
|
|
1
|
|
|
1
|
|
|
1,051
|
|
|
1,144
|
|
|
Equity securities
|
|
11,317
|
|
|
11,204
|
|
|
11
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
11,328
|
|
|
11,225
|
|
|
Commingled funds
|
|
—
|
|
|
—
|
|
|
7,189
|
|
|
7,205
|
|
|
33
|
|
|
46
|
|
|
7,222
|
|
|
7,251
|
|
|
Insurance contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
24
|
|
|
23
|
|
|
24
|
|
|
Other assets
|
|
—
|
|
|
1
|
|
|
314
|
|
|
214
|
|
|
53
|
|
|
63
|
|
|
367
|
|
|
278
|
|
|
Investments at fair value
|
|
$
|
11,501
|
|
|
11,373
|
|
|
10,643
|
|
|
11,068
|
|
|
110
|
|
|
134
|
|
|
22,254
|
|
|
22,575
|
|
(Dollars in Millions)
|
|
Debt Instruments
|
|
Equity Securities
|
|
Commingled Funds
|
|
Insurance Contracts
|
|
Other Assets
|
|
Total Level 3
|
|||||||
Balance December 29, 2013
|
|
$
|
1
|
|
|
4
|
|
|
44
|
|
|
23
|
|
|
69
|
|
|
141
|
|
Realized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
Unrealized gains (losses)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Purchases, sales, issuances and settlements, net
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
3
|
|
|
(1
|
)
|
|
—
|
|
|
Transfers in/out and exchange rate changes
|
|
—
|
|
|
(4
|
)
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
Balance December 28, 2014
|
|
1
|
|
|
—
|
|
|
46
|
|
|
24
|
|
|
63
|
|
|
134
|
|
|
Realized gains (losses)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|
Unrealized gains (losses)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(5
|
)
|
|
(16
|
)
|
|
Purchases, sales, issuances and settlements, net
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
(2
|
)
|
|
(3
|
)
|
|
Transfers in/out and exchange rate changes
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
Balance December 31, 2015
|
|
$
|
1
|
|
|
—
|
|
|
33
|
|
|
23
|
|
|
53
|
|
|
110
|
|
|
55
|
11.
|
Savings Plan
|
12.
|
Capital and Treasury Stock
|
|
|
Treasury Stock
|
|||||
(Amounts in Millions Except Treasury Stock Shares in Thousands)
|
|
Shares
|
|
Amount
|
|||
Balance at December 30, 2012
|
|
341,354
|
|
|
$
|
18,476
|
|
Employee compensation and stock option plans
|
|
(48,555
|
)
|
|
(3,367
|
)
|
|
Repurchase of common stock
|
|
6,416
|
|
|
591
|
|
|
Balance at December 29, 2013
|
|
299,215
|
|
|
15,700
|
|
|
Employee compensation and stock option plans
|
|
(32,302
|
)
|
|
(2,933
|
)
|
|
Repurchase of common stock
|
|
69,707
|
|
|
7,124
|
|
|
Balance at December 28, 2014
|
|
336,620
|
|
|
19,891
|
|
|
Employee compensation and stock option plans
|
|
(24,413
|
)
|
|
(2,497
|
)
|
|
Repurchase of common stock
|
|
52,474
|
|
|
5,290
|
|
|
Balance at January 3, 2016
|
|
364,681
|
|
|
$
|
22,684
|
|
13.
|
Accumulated Other Comprehensive Income
|
(Dollars in Millions)
|
|
Foreign
Currency Translation |
|
Gain/(Loss) On Securities
|
|
Employee Benefit Plans
|
|
Gain/
(Loss) On Derivatives & Hedges |
|
Total
Accumulated Other Comprehensive Income (Loss) |
||||||
December 30, 2012
|
|
$
|
(296
|
)
|
|
195
|
|
|
(5,717
|
)
|
|
8
|
|
|
(5,810
|
)
|
Net 2013 changes
|
|
94
|
|
|
(89
|
)
|
|
2,708
|
|
|
237
|
|
|
2,950
|
|
|
December 29, 2013
|
|
(202
|
)
|
|
106
|
|
|
(3,009
|
)
|
|
245
|
|
|
(2,860
|
)
|
|
Net 2014 changes
|
|
(4,601
|
)
|
|
151
|
|
|
(3,308
|
)
|
|
(104
|
)
|
|
(7,862
|
)
|
|
December 28, 2014
|
|
(4,803
|
)
|
|
257
|
|
|
(6,317
|
)
|
|
141
|
|
|
(10,722
|
)
|
|
Net 2015 changes
|
|
(3,632
|
)
|
|
347
|
|
|
1,019
|
|
|
(177
|
)
|
|
(2,443
|
)
|
|
January 3, 2016
|
|
$
|
(8,435
|
)
|
|
604
|
|
|
(5,298
|
)
|
|
(36
|
)
|
|
(13,165
|
)
|
|
56
|
14.
|
International Currency Translation
|
15.
|
Earnings Per Share
|
(In Millions Except Per Share Amounts)
|
|
2015
|
|
2014
|
|
2013
|
||||
Basic net earnings per share
|
|
$
|
5.56
|
|
|
5.80
|
|
|
4.92
|
|
Average shares outstanding — basic
|
|
2,771.8
|
|
|
2,815.2
|
|
|
2,809.2
|
|
|
Potential shares exercisable under stock option plans
|
|
141.5
|
|
|
142.6
|
|
|
148.5
|
|
|
Less: shares repurchased under treasury stock method
|
|
(102.6
|
)
|
|
(96.5
|
)
|
|
(103.3
|
)
|
|
Convertible debt shares
|
|
2.2
|
|
|
2.6
|
|
|
3.0
|
|
|
Accelerated share repurchase program
|
|
—
|
|
|
—
|
|
|
19.6
|
|
|
Adjusted average shares outstanding — diluted
|
|
2,812.9
|
|
|
2,863.9
|
|
|
2,877.0
|
|
|
Diluted net earnings per share
|
|
$
|
5.48
|
|
|
5.70
|
|
|
4.81
|
|
16.
|
Rental Expense and Lease Commitments
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
After 2020
|
|
Total
|
$224
|
|
194
|
|
136
|
|
90
|
|
74
|
|
109
|
|
827
|
17.
|
Common Stock, Stock Option Plans and Stock Compensation Agreements
|
|
57
|
|
2015
|
|
2014
|
|
2013
|
|||
Risk-free rate
|
1.77
|
%
|
|
1.87
|
%
|
|
1.01
|
%
|
Expected volatility
|
15.48
|
%
|
|
14.60
|
%
|
|
14.04
|
%
|
Expected life (in years)
|
7.0
|
|
|
6.0
|
|
|
6.0
|
|
Expected dividend yield
|
2.90
|
%
|
|
3.10
|
%
|
|
3.40
|
%
|
|
58
|
(Shares in Thousands)
|
|
Outstanding Shares
|
|
Weighted
Average Exercise Price
|
|
Aggregate
Intrinsic
Value
(Dollars in Millions)
|
|||||
Shares at December 30, 2012
|
|
134,351
|
|
|
$
|
61.58
|
|
|
$
|
1,061
|
|
Options granted
|
|
29,010
|
|
|
72.54
|
|
|
|
|||
Options exercised
|
|
(41,357
|
)
|
|
59.99
|
|
|
|
|||
Options canceled/forfeited
|
|
(2,448
|
)
|
|
65.89
|
|
|
|
|||
Shares at December 29, 2013
|
|
119,556
|
|
|
64.70
|
|
|
3,306
|
|
||
Options granted
|
|
24,356
|
|
|
90.44
|
|
|
|
|||
Options exercised
|
|
(25,319
|
)
|
|
62.31
|
|
|
|
|||
Options canceled/forfeited
|
|
(2,881
|
)
|
|
75.48
|
|
|
|
|||
Shares at December 28, 2014
|
|
115,712
|
|
|
70.37
|
|
|
4,014
|
|
||
Options granted
|
|
20,484
|
|
|
100.06
|
|
|
|
|||
Options exercised
|
|
(16,683
|
)
|
|
62.53
|
|
|
|
|||
Options canceled/forfeited
|
|
(2,996
|
)
|
|
82.22
|
|
|
|
|||
Shares at January 3, 2016
|
|
116,517
|
|
|
$
|
76.41
|
|
|
$
|
3,065
|
|
(Shares in Thousands)
|
|
Outstanding
|
|
Exercisable
|
||||||||
Exercise Price Range
|
|
Options
|
|
Average Life
(1)
|
|
Average Exercise Price
|
|
Options
|
|
Average Exercise Price
|
||
$52.13-$58.33
|
|
8,694
|
|
|
3.1
|
|
$58.32
|
|
8,694
|
|
|
$58.32
|
$58.34-$62.20
|
|
17,644
|
|
|
2.6
|
|
$61.21
|
|
17,644
|
|
|
$61.21
|
$62.62-$65.62
|
|
22,139
|
|
|
3.4
|
|
$64.55
|
|
21,726
|
|
|
$64.54
|
$66.07-$72.54
|
|
25,617
|
|
|
7.0
|
|
$72.52
|
|
217
|
|
|
$69.77
|
$90.44-$100.48
|
|
42,423
|
|
|
8.6
|
|
$94.98
|
|
64
|
|
|
$90.47
|
|
|
116,517
|
|
|
5.9
|
|
$76.41
|
|
48,345
|
|
|
$62.26
|
|
59
|
(Shares in Thousands)
|
|
Outstanding Restricted Share Units
|
|
Outstanding Performance Share Units
|
||
Shares at December 30, 2012
|
|
31,834
|
|
|
285
|
|
Granted
|
|
10,582
|
|
|
1,290
|
|
Issued
|
|
(10,078
|
)
|
|
—
|
|
Canceled/forfeited
|
|
(1,721
|
)
|
|
(40
|
)
|
Shares at December 29, 2013
|
|
30,617
|
|
|
1,535
|
|
Granted
|
|
8,487
|
|
|
1,113
|
|
Issued
|
|
(9,685
|
)
|
|
(19
|
)
|
Canceled/forfeited
|
|
(1,726
|
)
|
|
(98
|
)
|
Shares at December 28, 2014
|
|
27,693
|
|
|
2,531
|
|
Granted
|
|
7,637
|
|
|
931
|
|
Issued
|
|
(10,164
|
)
|
|
(285
|
)
|
Canceled/forfeited
|
|
(1,281
|
)
|
|
(99
|
)
|
Shares at January 3, 2016
|
|
23,885
|
|
|
3,078
|
|
|
60
|
18.
|
Segments of Business and Geographic Areas
|
|
|
Sales to Customers
|
||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
||||
Consumer —
|
|
|
|
|
|
|
||||
United States
|
|
$
|
5,222
|
|
|
5,096
|
|
|
5,162
|
|
International
|
|
8,285
|
|
|
9,400
|
|
|
9,535
|
|
|
Total
|
|
13,507
|
|
|
14,496
|
|
|
14,697
|
|
|
Pharmaceutical —
|
|
|
|
|
|
|
||||
United States
|
|
18,333
|
|
|
17,432
|
|
|
13,948
|
|
|
International
|
|
13,097
|
|
|
14,881
|
|
|
14,177
|
|
|
Total
|
|
31,430
|
|
|
32,313
|
|
|
28,125
|
|
|
Medical Devices —
|
|
|
|
|
|
|
||||
United States
|
|
12,132
|
|
|
12,254
|
|
|
12,800
|
|
|
International
|
|
13,005
|
|
|
15,268
|
|
|
15,690
|
|
|
Total
|
|
25,137
|
|
|
27,522
|
|
|
28,490
|
|
|
Worldwide total
|
|
$
|
70,074
|
|
|
74,331
|
|
|
71,312
|
|
|
|
Income Before Tax
|
|
Identifiable Assets
|
|||||||||||||
(Dollars in Millions)
|
|
2015
(3)
|
|
2014
(4)
|
|
2013
(5)
|
|
2015
|
|
2014
|
|||||||
Consumer
|
|
$
|
1,787
|
|
|
1,941
|
|
|
1,973
|
|
|
20,772
|
|
|
21,813
|
|
|
Pharmaceutical
|
|
11,734
|
|
|
11,696
|
|
|
9,178
|
|
|
26,144
|
|
|
25,803
|
|
||
Medical Devices
|
|
6,826
|
|
|
7,953
|
|
|
5,261
|
|
|
40,979
|
|
|
41,445
|
|
||
Total
|
|
20,347
|
|
|
21,590
|
|
|
16,412
|
|
|
87,895
|
|
|
89,061
|
|
||
Less: Expense not allocated to segments
(1)
|
|
1,151
|
|
|
1,027
|
|
|
941
|
|
|
|
|
|
||||
General corporate
(2)
|
|
|
|
|
|
|
|
45,516
|
|
|
41,297
|
|
|||||
Worldwide total
|
|
$
|
19,196
|
|
|
20,563
|
|
|
15,471
|
|
|
$
|
133,411
|
|
|
130,358
|
|
|
|
Additions to Property,
Plant & Equipment
|
|
Depreciation and
Amortization
|
||||||||||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||
Consumer
|
|
$
|
544
|
|
|
581
|
|
|
533
|
|
|
$
|
559
|
|
|
577
|
|
|
539
|
|
Pharmaceutical
|
|
1,063
|
|
|
977
|
|
|
856
|
|
|
929
|
|
|
1,053
|
|
|
1,075
|
|
||
Medical Devices
|
|
1,631
|
|
|
1,807
|
|
|
1,724
|
|
|
1,945
|
|
|
1,974
|
|
|
2,224
|
|
||
Segments total
|
|
3,238
|
|
|
3,365
|
|
|
3,113
|
|
|
3,433
|
|
|
3,604
|
|
|
3,838
|
|
||
General corporate
|
|
225
|
|
|
349
|
|
|
482
|
|
|
313
|
|
|
291
|
|
|
266
|
|
||
Worldwide total
|
|
$
|
3,463
|
|
|
3,714
|
|
|
3,595
|
|
|
$
|
3,746
|
|
|
3,895
|
|
|
4,104
|
|
|
61
|
|
|
Sales to Customers
|
|
Long-Lived Assets
(6)
|
||||||||||||
(Dollars in Millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
||||||
United States
|
|
$
|
35,687
|
|
|
34,782
|
|
|
31,910
|
|
|
36,609
|
|
|
36,835
|
|
Europe
|
|
15,995
|
|
|
18,947
|
|
|
18,599
|
|
|
20,167
|
|
|
21,559
|
|
|
Western Hemisphere excluding U.S.
|
|
6,045
|
|
|
7,160
|
|
|
7,421
|
|
|
2,881
|
|
|
3,210
|
|
|
Asia-Pacific, Africa
|
|
12,347
|
|
|
13,442
|
|
|
13,382
|
|
|
2,493
|
|
|
2,438
|
|
|
Segments total
|
|
70,074
|
|
|
74,331
|
|
|
71,312
|
|
|
62,150
|
|
|
64,042
|
|
|
General corporate
|
|
|
|
|
|
|
|
1,148
|
|
|
1,138
|
|
||||
Other non long-lived assets
|
|
|
|
|
|
|
|
70,113
|
|
|
65,178
|
|
||||
Worldwide total
|
|
$
|
70,074
|
|
|
74,331
|
|
|
71,312
|
|
|
133,411
|
|
|
130,358
|
|
(1)
|
Amounts not allocated to segments include interest (income) expense, noncontrolling interests and general corporate (income) expense.
|
(2)
|
General corporate includes cash, cash equivalents and marketable securities.
|
(3)
|
The Medical Devices segment includes a restructuring charge of
$590 million
, an intangible asset write-down of
$346 million
related to Acclarent, Synthes integration costs of
$196 million
and
$148 million
expense for the cost associated with the DePuy ASR
TM
Hip program. Includes
$224 million
of in-process research and development expense, comprised of
$214 million
and
$10 million
in the Pharmaceutical and Medical Devices segments, respectively. Includes net litigation expense of
$141 million
comprised of
$136 million
in the Pharmaceutical segment and
$5 million
in the Medical Devices segment, which included the gain from the litigation settlement agreement with Guidant for
$600 million
. The Medical Devices Segment includes a gain of
$1.3 billion
from the divestiture of the Cordis business. The Pharmaceutical segment includes a gain of
$981 million
from the U.S. divestiture of NUCYNTA
®
and a positive adjustment of
$0.5 billion
to previous reserve estimates, including Managed Medicaid rebates. The Consumer segment includes a gain of
$229 million
from the divestiture of SPLENDA
®
brand.
|
(4)
|
Includes net litigation expense of
$1,253 million
comprised of
$907 million
,
$259 million
and
$87 million
in the Medical Devices, Pharmaceutical and Consumer segments, respectively. Includes
$178 million
of in-process research and development expense, comprised of
$147 million
and
$31 million
in the Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment includes a net gain of
$1,899 million
from the divestiture of the Ortho-Clinical Diagnostics business, Synthes integration costs of
$754 million
and
$126 million
expense for the cost associated with the DePuy ASR
TM
Hip program. The Pharmaceutical segment includes an additional year of the Branded Prescription Drug Fee of
$220 million
and a positive adjustment of
$0.1 billion
to previous reserve estimates.
|
(5)
|
Includes
$2,276 million
of net litigation expense comprised of
$1,975 million
and
$301 million
in the Medical Devices and Pharmaceutical segments, respectively. Includes
$683 million
of Synthes integration/transaction costs in the Medical Devices segment. Includes
$580 million
of in-process research and development expense, comprised of
$514 million
and
$66 million
in the Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment also includes
$251 million
expense for the cost associated with the DePuy ASR
TM
Hip program. Includes
$98 million
of income related to other adjustments comprised of
$55 million
and
$43 million
in the Consumer and Pharmaceutical segments, respectively.
|
(6)
|
Long-lived assets include property, plant and equipment, net for
2015
, and
2014
of
$15,905
and
$16,126
, respectively, and intangible assets and goodwill, net for
2015
and
2014
of
$47,393
and
$49,054
, respectively.
|
|
62
|
19.
|
Selected Quarterly Financial Data (unaudited)
|
|
|
2015
|
|
2014
|
|||||||||||||||||||||
(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
|
|
$
|
3,390
|
|
|
3,483
|
|
|
3,314
|
|
|
3,320
|
|
|
3,557
|
|
|
3,744
|
|
|
3,589
|
|
|
3,606
|
|
Pharmaceutical
|
|
7,726
|
|
|
7,946
|
|
|
7,694
|
|
|
8,064
|
|
|
7,498
|
|
|
8,509
|
|
|
8,307
|
|
|
7,999
|
|
|
Medical Devices
|
|
6,258
|
|
|
6,358
|
|
|
6,094
|
|
|
6,427
|
|
|
7,060
|
|
|
7,242
|
|
|
6,571
|
|
|
6,649
|
|
|
Total sales
|
|
17,374
|
|
|
17,787
|
|
|
17,102
|
|
|
17,811
|
|
|
18,115
|
|
|
19,495
|
|
|
18,467
|
|
|
18,254
|
|
|
Gross profit
|
|
12,092
|
|
|
12,430
|
|
|
11,878
|
|
|
12,138
|
|
|
12,660
|
|
|
13,456
|
|
|
13,068
|
|
|
12,401
|
|
|
Earnings before provision for taxes on income
|
|
5,575
|
|
|
5,741
|
|
|
4,122
|
|
|
3,758
|
|
|
5,424
|
|
|
5,626
|
|
|
6,810
|
|
|
2,703
|
|
|
Net earnings
|
|
4,320
|
|
|
4,516
|
|
|
3,358
|
|
|
3,215
|
|
|
4,727
|
|
|
4,326
|
|
|
4,749
|
|
|
2,521
|
|
|
Basic net earnings per share
|
|
$
|
1.55
|
|
|
1.63
|
|
|
1.21
|
|
|
1.16
|
|
|
1.67
|
|
|
1.53
|
|
|
1.69
|
|
|
0.90
|
|
Diluted net earnings per share
|
|
$
|
1.53
|
|
|
1.61
|
|
|
1.20
|
|
|
1.15
|
|
|
1.64
|
|
|
1.51
|
|
|
1.66
|
|
|
0.89
|
|
(1)
|
The first quarter of 2015 includes a net litigation gain of
$253 million
after-tax (
$402 million
before-tax) and
$122 million
after-tax (
$139 million
before-tax) for costs associated with the DePuy ASR
TM
Hip program.
|
(2)
|
The second quarter of 2015 includes net litigation expense of
$23 million
after-tax (
$134 million
before-tax).
|
(3)
|
The third quarter of 2015 includes net litigation expense of
$348 million
after-tax (
$409 million
before-tax).
|
(4)
|
The fourth quarter of 2015 includes a restructuring charge of
$415 million
after-tax (
$590 million
before-tax),
$156 million
after-tax (
$214 million
before-tax) from impairment of in-process research and development and Synthes integration costs of
$59 million
after-tax (
$83 million
before-tax). Additionally, the fourth quarter of 2015 includes the gain on the Cordis divestiture.
|
(5)
|
The first quarter of 2014 includes Synthes integration costs of
$84 million
after-tax (
$118 million
before-tax) and a
$398 million
tax benefit associated with Conor Medsystems.
|
(6)
|
The second quarter of 2014 includes litigation expense of
$342 million
after-tax (
$276 million
before-tax) and Synthes integration costs of
$104 million
after-tax (
$144 million
before-tax).
|
(7)
|
The third quarter of 2014 includes an additional year of the Branded Prescription Drug Fee of
$220 million
after and before tax, litigation expense of
$231 million
after-tax (
$285 million
before-tax), Synthes integration costs of
$130 million
after-tax (
$167 million
before-tax) and
$111 million
after-tax (
$126 million
before-tax) for costs associated with the DePuy ASR
TM
Hip program. Additionally, the fiscal third quarter of 2014 includes a net gain of
$1.1 billion
after-tax (
$1.9 billion
before-tax) for the divestiture of the Ortho-Clinical Diagnostics business.
|
(8)
|
The fourth quarter of 2014 includes litigation expense, primarily related to product liability and patent litigation of
$652 million
after-tax (
$692 million
before-tax), Synthes integration costs of
$237 million
after-tax (
$325 million
before-tax) and
$115 million
after-tax (
$156 million
before-tax) from impairment of in-process research and development.
|
20.
|
Business Combinations and Divestitures
|
|
63
|
|
64
|
21.
|
Legal Proceedings
|
|
65
|
|
66
|
|
67
|
|
68
|
|
69
|
|
70
|
|
71
|
|
72
|
|
73
|
|
74
|
|
75
|
|
76
|
|
77
|
|
78
|
(Dollars in Millions)
|
Severance
|
Asset Write-offs
|
Other
|
Total
|
|||||
2015 restructuring charge
|
$
|
484
|
|
86
|
|
20
|
|
590
|
|
|
|
|
|
|
|||||
Current year activity
|
—
|
|
86
|
|
3
|
|
89
|
|
|
|
|
|
|
|
|||||
Reserve balance, January 3, 2016*
|
$
|
484
|
|
—
|
|
17
|
|
501
|
|
|
|
|
|
|
|
79
|
|
80
|
/s/ Alex Gorsky
|
|
/s/ Dominic J. Caruso
|
Alex Gorsky
|
|
Dominic J. Caruso
|
Chairman, Board of Directors
|
|
Vice President, Finance
|
Chief Executive Officer
|
|
Chief Financial Officer
|
|
81
|
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
Johnson & Johnson
|
$100.00
|
$112.44
|
$116.50
|
$107.45
|
$119.57
|
$118.87
|
$130.63
|
$144.77
|
$194.89
|
$228.67
|
$231.32
|
S&P 500 Index
|
$100.00
|
$115.78
|
$122.23
|
$77.00
|
$97.37
|
$112.03
|
$114.39
|
$132.68
|
$175.64
|
$199.67
|
$202.41
|
S&P Pharmaceutical Index
|
$100.00
|
$115.85
|
$121.25
|
$99.18
|
$117.65
|
$118.56
|
$139.62
|
$159.76
|
$216.04
|
$264.04
|
$279.32
|
S&P Healthcare Equipment Index
|
$100.00
|
$104.12
|
$109.47
|
$79.20
|
$102.01
|
$99.24
|
$98.45
|
$115.45
|
$147.42
|
$186.16
|
$197.28
|
|
82
|
Item 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
Item 9A.
|
CONTROLS AND PROCEDURES
|
Item 9B.
|
OTHER INFORMATION
|
Item 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
|
83
|
Item 11.
|
EXECUTIVE COMPENSATION
|
Item 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan Category
|
Number of Securities to
be Issued Upon Exercise of
Outstanding Options and Rights
|
|
Weighted Average
Exercise Price of
Outstanding Options and Rights
|
|
Number of Securities
Remaining Available for
Future Issuance Under Equity Compensation Plans
(2)(3)
|
||||
Equity Compensation Plans Approved by Security Holders
(1)
|
143,479,580
|
|
|
|
$62.05
|
|
|
485,801,441
|
|
Equity Compensation Plans Not Approved by Security Holders
|
-
|
|
|
-
|
|
|
-
|
|
|
Total
|
143,479,580
|
|
|
|
$62.05
|
|
|
485,801,441
|
|
(1)
|
Included in this category are the following equity compensation plans which have been approved by the Company’s shareholders: 2005 Long-Term Incentive Plan and 2012 Long-Term Incentive Plan.
|
(2)
|
This column excludes shares reflected under the column “Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights.”
|
(3)
|
The 2005 Long-Term Incentive Plan expired April 26, 2012. All options and restricted shares granted subsequent to that date were under the 2012 Long-Term Incentive Plan.
|
Item 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Item 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
|
84
|
Item 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
|
85
|
JOHNSON & JOHNSON
|
(Registrant)
|
By
|
/s/ A. Gorsky
|
|
A. Gorsky, Chairman, Board of Directors,
and Chief Executive Officer |
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ A. Gorsky
|
|
Chairman, Board of Directors,
|
|
February 24, 2016
|
A. Gorsky
|
|
Chief Executive Officer, and Director (Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ D. J. Caruso
|
|
Chief Financial Officer and Vice President, Finance
|
|
February 24, 2016
|
D. J. Caruso
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ R. A. Kapusta
|
|
Controller and Chief Accounting Officer
|
|
February 24, 2016
|
R. A. Kapusta
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ M. C. Beckerle
|
|
Director
|
|
February 24, 2016
|
M. C. Beckerle
|
|
|
|
|
|
|
|
|
|
/s/ M. S. Coleman
|
|
Director
|
|
February 24, 2016
|
M. S. Coleman
|
|
|
|
|
|
|
|
|
|
/s/ D. S. Davis
|
|
Director
|
|
February 24, 2016
|
D. S. Davis
|
|
|
|
|
|
|
|
|
|
/s/ I. E. L. Davis
|
|
Director
|
|
February 24, 2016
|
I. E. L. Davis
|
|
|
|
|
|
86
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ S. L. Lindquist
|
|
Director
|
|
February 24, 2016
|
S. L. Lindquist
|
|
|
|
|
|
|
|
|
|
/s/ M. B. McClellan
|
|
Director
|
|
February 24, 2016
|
M. B. McClellan
|
|
|
|
|
|
|
|
|
|
/s/ A. M. Mulcahy
|
|
Director
|
|
February 24, 2016
|
A. M. Mulcahy
|
|
|
|
|
|
|
|
|
|
/s/ W. D. Perez
|
|
Director
|
|
February 24, 2016
|
W. D. Perez
|
|
|
|
|
|
|
|
|
|
/s/ C. Prince
|
|
Director
|
|
February 24, 2016
|
C. Prince
|
|
|
|
|
|
|
|
|
|
/s/ A. E. Washington
|
|
Director
|
|
February 24, 2016
|
A. E. Washington
|
|
|
|
|
|
|
|
|
|
/s/ R. A. Williams
|
|
Director
|
|
February 24, 2016
|
R. A. Williams
|
|
|
|
|
|
87
|
Reg. S-K
|
|
|
Exhibit Table
|
|
Description
|
Item No.
|
|
of Exhibit
|
3(i)
|
|
Restated Certificate of Incorporation effective February 19, 2016 — Filed with this document.
|
3(ii)
|
|
By-Laws of the Company, as amended effective January 26, 2016 — Incorporated herein by reference to Exhibit 3.1 the Registrant’s Form 8-K Current Report filed January 26, 2016.
|
4(a)
|
|
Upon the request of the Securities and Exchange Commission, the Registrant will furnish a copy of all instruments defining the rights of holders of long-term debt of the Registrant.
|
10(a)
|
|
2005 Long-Term Incentive Plan — Incorporated herein by reference to Exhibit 4 of the Registrant’s S-8 Registration Statement filed with the Commission on May 10, 2005 (file no. 333-124785).*
|
10(b)
|
|
Form of Restricted Shares to Non-Employee Directors under the 2005 Long-Term Incentive Plan — Incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 8-K Current Report filed August 25, 2005.*
|
10(c)
|
|
Form of Stock Option Certificate, Restricted Share Unit Certificate and Performance Share Unit Certificate under the 2005 Long-Term Incentive Plan — Incorporated herein by reference to Exhibits 10.1, 10.2 and 10.3 of the Registrant’s Form 8-K Current Report filed January 13, 2012.*
|
10(d)
|
|
2012 Long-Term Incentive Plan — Incorporated herein by reference to Appendix A of the Registrant’s Proxy Statement filed with the Commission on March 14, 2012 .*
|
10(e)
|
|
Form of Stock Option Certificate, Restricted Share Unit Certificate and Performance Share Unit Certificate under the 2012 Long-Term Incentive Plan — Incorporated herein by reference to Exhibits 10.2, 10.3 and 10.4 of the Registrant’s Form 10-Q Quarterly Report filed May 7, 2012.*
|
10(f)
|
|
Executive Incentive Plan (as amended) — Incorporated herein by reference to Exhibit 10(f) of the Registrant’s Form 10-K Annual Report for the year ended December 31, 2000.*
|
10(g)
|
|
Domestic Deferred Compensation (Certificate of Extra Compensation) Plan — Incorporated herein by reference to Exhibit 10(g) of the Registrant’s Form 10-K Annual Report for the year ended December 28, 2003.*
|
10(h)
|
|
Amendments to the Certificate of Extra Compensation Plan effective as of January 1, 2009 — Incorporated herein by reference to Exhibit 10(j) of the Registrant’s Form 10-K Annual Report for the year ended December 28, 2008.*
|
10(i)
|
|
2009 Certificates of Long-Term Performance Plan — Incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 10-Q Quarterly Report for the quarter ended September 27, 2009.*
|
10(j)
|
|
Amended and Restated Deferred Fee Plan for Directors — Incorporated herein by reference to Exhibit 10(k) of the Registrant's Form 10-K Annual Report for the year ended January 1, 2012.*
|
10(k)
|
|
Executive Income Deferral Plan (Amended and Restated) — Incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 10-Q Quarterly Report for the quarter ended September 30, 2012.*
|
10(l)
|
|
Excess Savings Plan — Incorporated herein by reference to Exhibit 10(j) of the Registrant’s Form 10-K Annual Report for the year ended December 29, 1996.*
|
10(m)
|
|
Amendments to the Johnson & Johnson Excess Savings Plan effective as of January 1, 2009 — Incorporated herein by reference to Exhibit 10(p) of the Registrant’s Form 10-K Annual Report for the year ended December 28, 2008.*
|
10(n)
|
|
Excess Benefit Plan (Supplemental Retirement Plan) — Incorporated herein by reference to Exhibit 10(h) of the Registrant’s Form 10-K Annual Report for the year ended January 3, 1993.*
|
10(o)
|
|
Amendments to the Excess Benefit Plan of Johnson & Johnson and Affiliated Companies effective as of January 1, 2009 — Incorporated herein by reference to Exhibit 10(r) of the Registrant’s Form 10-K Annual Report for the year ended December 28, 2008.*
|
10(p)
|
|
Amendment to the Excess Benefit Plan of Johnson & Johnson and Affiliated Companies, effective as of January 1, 2015 — Incorporated herein by reference to Exhibit 10(q) of the Registrant’s Form 10-K Annual Report for the year ended December 28, 2014.*
|
10(q)
|
|
Executive Life Plan Agreement — Incorporated herein by reference to Exhibit 10(i) of the Registrant’s Form 10-K Annual Report for the year ended January 3, 1993.*
|
10(r)
|
|
Executive Life Plan Agreement Closure Letter — Incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 10-Q Quarterly Report for the quarter ended March 29, 2015.*
|
10(s)
|
|
Johnson & Johnson Retirement Savings Plan, Johnson & Johnson Savings Plan for Union Represented Employees, and Johnson & Johnson Savings Plan - Incorporated herein by reference to Exhibits 99.1, 99.2 and 99.3 of the Registrant's Form S-8 filed with the Commission on May 6, 2013.*
|
10(t)
|
|
Employment Agreement for Dr. Paulus Stoffels - Incorporated herein by reference to Exhibit 10.2 of the Registrant’s Form 10-Q Quarterly Report for the quarter ended September 30, 2012.*
|
|
88
|
Reg. S-K
|
|
|
Exhibit Table
|
|
Description
|
Item No.
|
|
of Exhibit
|
10(u)
|
|
Summary of Employment Arrangements for Sandra E. Peterson — Incorporated herein by reference to Exhibit 10(t) of the Registrant's Form 10-K Annual Report for the year ended December 30, 2012.*
|
10(v)
|
|
Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies, Amended and Restated as of October 1, 2014 — Incorporated herein by reference to Exhibit 10.1 of the Registrant's Form 10-Q Quarterly Report for the quarter ended September 28, 2014.*
|
10(w)
|
|
First Amendment to the Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies (as amended and restated effective October 1, 2014) — Incorporated herein by reference to Exhibit 10.1 of the Registrant's Form 10-Q Quarterly Report for the quarter ended June 28, 2015.*
|
10(x)
|
|
Second Amendment to the Severance Pay Plan of Johnson & Johnson and U.S. Affiliated Companies (as amended and restated effective October 1, 2014) — Filed with this document.*
|
12
|
|
Statement of Computation of Ratio of Earnings to Fixed Charges — Filed with this document.
|
21
|
|
Subsidiaries - Filed with this document.
|
23
|
|
Consent of Independent Registered Public Accounting Firm — Filed with this document.
|
31(a)
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act — Filed with this document.
|
31(b)
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act — Filed with this document.
|
32(a)
|
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act — Furnished with this document.
|
32(b)
|
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act — Furnished with this document.
|
99
|
|
Cautionary Statement Pursuant to Private Securities Litigation Reform Act of 1995 — “Safe Harbor” for Forward-Looking Statements — Filed with this document.
|
101
|
|
XBRL (Extensible Business Reporting Language) The following materials from this Report for the fiscal year ended January 3, 2016, formatted in Extensive Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to the Consolidated Financial Statements.
|
*
|
Management contract or compensatory plan.
|
|
89
|
A.
|
PREFERRED STOCK
:
|
(a)
|
entitling the holders thereof to cumulative, non-cumulative or partially cumulative dividends;
|
(b)
|
entitling the holders thereof to receive dividends payable on a parity with, or in preference to, the dividends payable on any other class or series of capital stock of the Corporation;
|
(c)
|
entitling the holders thereof to preferential rights upon the liquidation of, or upon any distribution of the assets of, the Corporation;
|
(d)
|
convertible, at the option of the holder or of the Corporation or both, into shares of any other class or classes of capital stock of the Corporation or of any series of the same or any other class or classes;
|
(e)
|
redeemable, in whole or in part, at the option of the Corporation, in cash, bonds or other property, at such price or prices, within such period or periods, and under such conditions as the Board of Directors shall so provide, including provision for the creation of a sinking fund for the redemption thereof; and
|
(f)
|
lacking voting rights or having limited voting rights or enjoying special or multiple voting rights.
|
B.
|
COMMON STOCK
:
|
1.
|
Article 4.1(b)(iii) is amended to read as follows:
|
a.
|
An Eligible Employee is not eligible for the benefits provided in Article 5 if his or her employment is terminated as a result of any one of the following events:
|
i.
|
the refusal of a position with a Johnson & Johnson Company, which, in the sole discretion of the Pension and Benefits Committee, is comparable (meaning that the new position would not result in a reduction of the Eligible Employee’s base pay or salary (other than a
de minimis
reduction)
or pay grade ) to the Eligible Employee’s current position and for which the primary work location is no more than a 50-mile radius from the Eligible Employee’s current primary work location, or the acceptance of employment with a Johnson & Johnson Company;
|
|
|
|
|
|||||||||||||||||
|
January 3, 2016
|
|
December 28, 2014
|
|
December 29, 2013
|
|
December 30, 2012
|
|
January 1, 2012
|
|
||||||||||
Determination of Earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings Before Provision for Taxes on Income
|
$
|
19,196
|
|
|
$
|
20,563
|
|
|
$
|
15,471
|
|
|
$
|
13,775
|
|
|
$
|
12,361
|
|
|
Fixed Charges, less Capitalized Interest
|
657
|
|
|
647
|
|
|
603
|
|
|
657
|
|
|
675
|
|
|
|||||
Total Earnings as Defined
|
$
|
19,853
|
|
|
$
|
21,210
|
|
|
$
|
16,074
|
|
|
$
|
14,432
|
|
|
$
|
13,036
|
|
|
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Estimated Interest Portion of Rent Expense
|
105
|
|
|
114
|
|
|
121
|
|
|
125
|
|
|
104
|
|
|
|||||
Interest Expense before Capitalization of Interest
|
654
|
|
|
648
|
|
|
587
|
|
|
647
|
|
|
655
|
|
|
|||||
Total Fixed Charges
|
$
|
759
|
|
|
$
|
762
|
|
|
$
|
708
|
|
|
$
|
772
|
|
|
$
|
759
|
|
|
Ratio of Earnings to Fixed Charges
|
26.16
|
|
|
27.83
|
|
|
22.70
|
|
|
18.69
|
|
|
17.18
|
|
|
(1)
|
The ratio of earnings to fixed charges is computed by dividing the sum of earnings before provision for taxes on income and fixed charges by fixed charges. Fixed charges represent interest expense (before interest is capitalized), amortization of debt discount and an appropriate interest factor on operating leases.
|
Name of Subsidiary
|
Jurisdiction of Organization
|
U.S. Subsidiaries:
|
|
Acclarent, Inc.
|
Delaware
|
Advanced Sterilization Products Services Inc.
|
New Jersey
|
Alios BioPharma, Inc.
|
Delaware
|
ALZA Corporation
|
Delaware
|
Alza Land Management, Inc.
|
Delaware
|
Animas Corporation
|
Delaware
|
Aragon Pharmaceuticals, Inc.
|
Delaware
|
Biosense Webster, Inc.
|
California
|
Calibra Medical, Inc.
|
Delaware
|
CNA Development LLC
|
Delaware
|
Codman & Shurtleff, Inc.
|
New Jersey
|
Coherex Medical, Inc.
|
Delaware
|
Cordis Financing Corporation
|
Delaware
|
Cordis LLC
|
Delaware
|
DePuy Mitek, LLC
|
Massachusetts
|
DePuy Orthopaedics, Inc.
|
Indiana
|
DePuy Products, Inc.
|
Indiana
|
DePuy Spine, LLC
|
Ohio
|
DePuy Synthes Products, Inc.
|
Delaware
|
DePuy Synthes Sales, Inc.
|
Massachusetts
|
DePuy Synthes, Inc.
|
Delaware
|
Diabetes Diagnostics, Inc.
|
Delaware
|
Ethicon Endo-Surgery, Inc.
|
Ohio
|
Ethicon Endo-Surgery, LLC
|
Delaware
|
Ethicon LLC
|
Delaware
|
Ethicon US, LLC
|
Texas
|
Ethicon, Inc.
|
New Jersey
|
Heartport, Inc.
|
Delaware
|
J&J Holdings (Nevada), Inc.
|
Nevada
|
Janssen Biotech, Inc.
|
Pennsylvania
|
Janssen Global Services, LLC
|
New Jersey
|
Janssen Oncology, Inc.
|
Delaware
|
Janssen Ortho LLC
|
Delaware
|
Janssen Pharmaceuticals, Inc.
|
Pennsylvania
|
Janssen Products, LP
|
New Jersey
|
Janssen Research & Development, LLC
|
New Jersey
|
Janssen Scientific Affairs, LLC
|
New Jersey
|
Janssen Supply Group, LLC
|
Pennsylvania
|
Janssen-Cilag Manufacturing, LLC
|
Delaware
|
JJHC, LLC
|
Delaware
|
JNJ International Investment LLC
|
Delaware
|
Johnson & Johnson (Middle East) Inc.
|
New Jersey
|
Johnson & Johnson Consumer Inc.
|
New Jersey
|
Johnson & Johnson Finance Corporation
|
New Jersey
|
Johnson & Johnson Health Care Systems Inc.
|
New Jersey
|
Johnson & Johnson Innovation - JJDC, Inc.
|
New Jersey
|
Johnson & Johnson International
|
New Jersey
|
Johnson & Johnson Japan Inc.
|
New Jersey
|
Name of Subsidiary
|
Jurisdiction of Organization
|
DePuy Synthes Eos Limited
|
Ireland
|
DePuy Synthes Gorgan Limited
|
Ireland
|
DePuy Synthes Jason Limited
|
Ireland
|
DePuy Synthes Leto S.A.R.L.
|
Luxembourg
|
EES, S.A. de C.V.
|
Mexico
|
Ethicon
|
France
|
Ethicon Ireland
|
Ireland
|
Ethicon PR Holdings
|
Ireland
|
Ethicon Women's Health & Urology Sarl
|
Switzerland
|
Ethnor Farmaceutica, S.A.
|
Venezuela
|
FMS Future Medical System SA
|
Switzerland
|
GMED Healthcare BVBA
|
Belgium
|
J.C. General Services CVBA
|
Belgium
|
Janssen Alzheimer Immunotherapy (Holding) Limited
|
Ireland
|
Janssen Biologics (Ireland)
|
Ireland
|
Janssen Biologics B.V.
|
Netherlands
|
Janssen Cilag Farmaceutica S.A.
|
Argentina
|
Janssen de Mexico, S. de R.L. de C.V.
|
Mexico
|
Janssen Inc.
|
Canada
|
Janssen Infectious Diseases-Diagnostics BVBA
|
Belgium
|
Janssen Irish Finance Company UC
|
Ireland
|
Janssen Korea Ltd.
|
Korea, Republic of
|
Janssen Pharmaceutica NV
|
Belgium
|
Janssen Pharmaceutical
|
Ireland
|
Janssen Pharmaceutical Holdings
|
Ireland
|
Janssen Pharmaceutical International Holdings
|
Ireland
|
Janssen Pharmaceutical K.K.
|
Japan
|
Janssen Pharmaceutical Sciences Unlimited Company
|
Ireland
|
Janssen R&D Ireland
|
Ireland
|
Janssen Sciences Ireland UC
|
Ireland
|
Janssen Vaccine Corp.
|
Korea, Republic of
|
Janssen Vaccines AG
|
Switzerland
|
Janssen-Cilag
|
France
|
Janssen-Cilag AB
|
Sweden
|
Janssen-Cilag AG
|
Switzerland
|
Janssen-Cilag AS
|
Norway
|
Janssen-Cilag AS
|
Denmark
|
Janssen-Cilag B.V.
|
Netherlands
|
Janssen-Cilag Farmaceutica Ltda.
|
Brazil
|
Janssen-Cilag Farmaceutica, Lda.
|
Portugal
|
Janssen-Cilag GmbH
|
Germany
|
Janssen-Cilag Kft.
|
Hungary
|
Janssen-Cilag Limited
|
Thailand
|
Janssen-Cilag Limited
|
United Kingdom
|
Janssen-Cilag NV
|
Belgium
|
Janssen-Cilag OY
|
Finland
|
Janssen-Cilag Pharma GmbH
|
Austria
|
Janssen-Cilag Pharmaceutical S.A.C.I.
|
Greece
|
Name of Subsidiary
|
Jurisdiction of Organization
|
Janssen-Cilag Pty Ltd
|
Australia
|
Janssen-Cilag S.A.
|
Colombia
|
Janssen-Cilag S.p.A.
|
Italy
|
Janssen-Cilag, C.A.
|
Venezuela
|
Janssen-Cilag, S.A.
|
Spain
|
Janssen-Cilag, S.A. de C.V.
|
Mexico
|
J-C Health Care Ltd.
|
Israel
|
JJC Acquisition Company B.V.
|
Netherlands
|
Johnson & Johnson (China) Investment Ltd.
|
China
|
Johnson & Johnson (China) Ltd.
|
China
|
Johnson & Johnson (Hong Kong) Limited
|
Hong Kong
|
Johnson & Johnson (Ireland) Limited
|
Ireland
|
Johnson & Johnson (New Zealand) Limited
|
New Zealand
|
Johnson & Johnson (Philippines), Inc.
|
Philippines
|
Johnson & Johnson (Proprietary) Limited
|
South Africa
|
Johnson & Johnson (Thailand) Ltd.
|
Thailand
|
Johnson & Johnson AB
|
Sweden
|
Johnson & Johnson AG
|
Switzerland
|
Johnson & Johnson Belgium Finance Company
|
Belgium
|
Johnson & Johnson Consumer (Thailand) Limited
|
Thailand
|
Johnson & Johnson Consumer B.V.
|
Netherlands
|
Johnson & Johnson Consumer Holdings France
|
France
|
Johnson & Johnson Consumer Services EAME Ltd.
|
United Kingdom
|
Johnson & Johnson de Argentina S.A.C. e. I.
|
Argentina
|
Johnson & Johnson de Chile S.A.
|
Chile
|
Johnson & Johnson de Colombia S.A.
|
Colombia
|
Johnson & Johnson de Mexico, S.A. de C.V.
|
Mexico
|
Johnson & Johnson de Venezuela, S.A.
|
Venezuela
|
Johnson & Johnson del Ecuador S.A.
|
Ecuador
|
Johnson & Johnson del Peru S.A.
|
Peru
|
Johnson & Johnson do Brasil Industria E Comercio de Produtos Para Saude Ltda.
|
Brazil
|
Johnson & Johnson European Treasury Company
|
Ireland
|
Johnson & Johnson Finance Limited
|
United Kingdom
|
Johnson & Johnson Financial Services GmbH
|
Germany
|
Johnson & Johnson Gesellschaft m.b.H.
|
Austria
|
Johnson & Johnson GmbH
|
Germany
|
Johnson & Johnson Group Holdings GmbH
|
Germany
|
Johnson & Johnson Hellas Commercial and Industrial S.A.
|
Greece
|
Johnson & Johnson Holding GmbH
|
Germany
|
Johnson & Johnson Holdings K.K.
|
Japan
|
Johnson & Johnson Inc.
|
Canada
|
Johnson & Johnson Industrial Ltda.
|
Brazil
|
Johnson & Johnson Innovation Limited
|
United Kingdom
|
Johnson & Johnson International Financial Services Company
|
Ireland
|
Johnson & Johnson K.K.
|
Japan
|
Johnson & Johnson Kft.
|
Hungary
|
Johnson & Johnson Korea Selling & Distribution Limited Liability Company
|
Korea, Republic of
|
Johnson & Johnson Korea, Ltd.
|
Korea, Republic of
|
Name of Subsidiary
|
Jurisdiction of Organization
|
Johnson & Johnson Limitada
|
Portugal
|
Johnson & Johnson Limited
|
United Kingdom
|
Johnson & Johnson LLC
|
Russian Federation
|
Johnson & Johnson Luxembourg Finance Company Sarl
|
Luxembourg
|
Johnson & Johnson Management Limited
|
United Kingdom
|
Johnson & Johnson Medical (China) Ltd.
|
China
|
Johnson & Johnson Medical (Shanghai) Ltd.
|
China
|
Johnson & Johnson Medical (Suzhou) Ltd.
|
China
|
Johnson & Johnson Medical B.V.
|
Netherlands
|
Johnson & Johnson Medical GmbH
|
Germany
|
Johnson & Johnson Medical Korea Limited
|
Korea, Republic of
|
Johnson & Johnson Medical Limited
|
United Kingdom
|
Johnson & Johnson Medical Mexico, S.A. de C.V.
|
Mexico
|
Johnson & Johnson Medical NV
|
Belgium
|
Johnson & Johnson Medical Products GmbH
|
Austria
|
Johnson & Johnson Medical Pty Ltd
|
Australia
|
Johnson & Johnson Medical S.A.
|
Argentina
|
Johnson & Johnson Medical S.p.A.
|
Italy
|
Johnson & Johnson Medical, S.C.S.
|
Venezuela
|
Johnson & Johnson Medikal Sanayi ve Ticaret Limited Sirketi
|
Turkey
|
Johnson & Johnson Middle East FZ-LLC
|
United Arab Emirates
|
Johnson & Johnson Nordic AB
|
Sweden
|
Johnson & Johnson Pacific Pty. Limited
|
Australia
|
Johnson & Johnson Poland Sp. z o.o.
|
Poland
|
Johnson & Johnson Private Limited
|
India
|
Johnson & Johnson Pte. Ltd.
|
Singapore
|
Johnson & Johnson Pty. Limited
|
Australia
|
Johnson & Johnson Sante Beaute France
|
France
|
Johnson & Johnson S.p.A.
|
Italy
|
Johnson & Johnson SDN. BHD.
|
Malaysia
|
Johnson & Johnson Sihhi Malzeme Sanayi Ve Ticaret Limited Sirketi
|
Turkey
|
Johnson & Johnson Swiss Finance Company Limited
|
United Kingdom
|
Johnson & Johnson Taiwan Ltd.
|
Taiwan
|
Johnson & Johnson UK Treasury Company Limited
|
United Kingdom
|
Johnson & Johnson Vision Care (Ireland)
|
Ireland
|
Johnson & Johnson, prodaja medicinskih in farmacevtskih izdelkov, d.o.o.
|
Slovenia
|
Johnson & Johnson, S.A.
|
Spain
|
Johnson & Johnson, S.A. de C.V.
|
Mexico
|
Johnson & Johnson, s.r.o.
|
Czech Republic
|
Johnson & Johnson, s.r.o.
|
Slovakia
|
Johnson and Johnson Medical (Pty) Limited
|
South Africa
|
Latam International Investment Company
|
Ireland
|
Latam Properties Holdings
|
Ireland
|
Lifescan
|
France
|
LifeScan Scotland Limited
|
United Kingdom
|
McNeil AB
|
Sweden
|
McNeil Healthcare (UK) Limited
|
United Kingdom
|
McNeil Products Limited
|
United Kingdom
|
Name of Subsidiary
|
Jurisdiction of Organization
|
McNeil Sweden AB
|
Sweden
|
Medos International Sarl
|
Switzerland
|
Medos Sarl
|
Switzerland
|
Mentor B.V.
|
Netherlands
|
Mentor Medical Systems B.V.
|
Netherlands
|
Mentor Medical Systems C.V.
|
Netherlands
|
OBTECH Medical Sarl
|
Switzerland
|
OMJ Ireland
|
Ireland
|
OMJ PR Holdings
|
Ireland
|
Omrix Biopharmaceuticals Ltd.
|
Israel
|
PT. Johnson & Johnson Indonesia
|
Indonesia
|
Shanghai Elsker Mother & Baby Co., Ltd
|
China
|
Shanghai Johnson & Johnson Pharmaceuticals, Ltd.
|
China
|
Spectrum Vision Limited Liability Company
|
Russian Federation
|
Synthes (Suzhou) Medical Co., Ltd.
|
China
|
Synthes Australia Pty Ltd
|
Australia
|
Synthes Colombia S.A.S.
|
Colombia
|
SYNTHES GmbH
|
Germany
|
Synthes GmbH
|
Switzerland
|
Synthes Holding AG
|
Switzerland
|
Synthes Limited
|
United Kingdom
|
Synthes Lux Finance S.àr.l.
|
Luxembourg
|
Synthes Luxembourg, S.àr.l.
|
Luxembourg
|
SYNTHES Medical Immobilien GmbH
|
Germany
|
Synthes Produktions GmbH
|
Switzerland
|
Synthes Tuttlingen GmbH
|
Germany
|
Tasmanian Alkaloids Pty. Ltd.
|
Australia
|
Turnbuckle Investment Company
|
Ireland
|
Vania Expansion
|
France
|
Xian-Janssen Pharmaceutical Ltd.
|
China
|
XO1 Limited
|
United Kingdom
|
|
|
|
|
|
/s/ Alex Gorsky
|
|
Alex Gorsky
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Dominic J. Caruso
|
|
Dominic J. Caruso
|
|
Chief Financial Officer
|
|
|
(1)
|
the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
|
|
/s/ Alex Gorsky
|
|
Alex Gorsky
|
|
Chief Executive Officer
|
|
|
(1)
|
the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016 (the “Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
/s/ Dominic J. Caruso
|
|
Dominic J. Caruso
|
|
Chief Financial Officer
|
|
|