business practices healthcare industry. government agencies attorneys investigations prosecutions risk penalties. increased enforcement data protection authorities European Union fines for data breaches violations privacy cross-border data transfers. Federal Trade Commission stepped enforcement data privacy settlements class-action lawsuits biometric data tracking technologies.


Company relies global supply chains production distribution processes complex sourcing supply pricing materials. approvals.


December 31, 2023 134,400 131,900


full part fixed interns co-op. long-term disability excluded. Contingent contractors subcontractors excluded.


2FTE full-time positions reflect employees part-time.


Company believes employees critical success essential strategy. Management policies corporate culture strategy risk management ethics compliance. human capital strategy •Attracting recruiting •Developing retaining inspiring


efforts culture diversity equity innovation health well-being safety employees encouraged succeed business goals.


guided Credo responsibilities to patients consumers customers healthcare professionals employees communities shareholders. adhere Code of Business Conduct policies procedures guidelines. conducts surveys feedback risks. 2023 94% employees 76 countries participated Credo Survey 36 languages.


healthcare landscape Company retain top talent. 2023 voluntary turnover rate 7%. believes employees knowledge skills opportunities grow. professional development programs educational resources available. learning culture career path pipeline talent long-term strategies. global approach development everyone. first Global Learning Day. Employees skill-building courses leadership business skills digital upskilling DEI well-being J&J Learn platform.


Company committed workplace diversity culture equity inclusion. Diversity Equity Inclusion strategy recognizes needs. DEI Vision Be change world. Mission diversity equity inclusion. DEI Strategy Vision Mission pillars workforce diverse backgrounds cultures culture inclusion talent business processes equitable opportunities innovation growth diverse markets


Company DEI strategy insights best practices feedback diversity inclusion.


offers competitive compensation benefits top talent. fairness equitable treatment. observes minimum wage exceeds. programs performance pension retirement savings health welfare paid time off leave flexible schedules assistance. enhanced caregiver bereavement volunteer leave benefits July 2023.


Company’s investment in employee health safety starts. awareness focus practices tools ensures employees temporary contractors visitors work safely. expanded health well-being programs new technologies achieve health goals. programs practices for total protection for risks. through J&J Flex hybrid model employees productivity balance in-person remote work.


Company’s main corporate website. SEC filings available./financials/sec-filings after electronically filed SEC. SEC filings available website.


Investors public Company announces. factsaboutourprescriptionopioids. factsabouttalc. LLTManagementInformation. websites communicate products. information material information. encourage review information with. jnj. SEC filings press releases conference calls webcasts.


Amended Certificate Incorporation By-Laws charters Audit Compensation Benefits Nominating Corporate Governance Committee Regulatory Compliance Sustainability Committee Science Technology Committee special Board Directors Principles Corporate Governance Code Business Conduct Ethics materials available. website provided without charge shareholder. information. factsaboutourprescriptionopioids. LLTManagementInformation. not part Report filings SEC.


investment in Company’s common stock debt securities involves risks uncertainties. Company seeks risks difficult outside control eliminated. filings SEC investors consider factors below. not possible predict all factors not complete discussion risks. If risks Company’s business results financial condition could.


businesses competitive markets affect earnings.


Company faces competition segments markets. businesses compete cost-effectiveness technological innovations intellectual property rights product performance advantages pricing availability reimbursement. competes rights acquisitions collaborations licensing agreements. Competition for rights investment costs onerous agreement terms. Competitors’ products intellectual property rights impact sales new products. operational financial risk acquisitions identify risks liabilities integrate operations employees synergies acquisition strain management operations financial resources.


Innovative Medicine loss patent exclusivity sales competitors approval. competition loss exclusivity biological product. MedTech businesses technological innovation product quality reputation customer service important competitiveness. products technologies products less desirable economical obsolete. business impacted introduce new products effective competitors.


delays business sales reputation.


requires complex components materials. subsidiaries operate 61 facilities suppliers. interruptions delays. disruptions regulatory action production quality safety labor disputes shortages incidents natural disasters raw material shortages political unrest terrorist attacks epidemics. delays product shortages declines sales reputational impact remediation costs.


Company relies third parties products. failure loss delays costs affect business.


Company relies on third parties supply raw materials parts products. depend on manufacturers manufacturing capacity produce acceptable quality yields deliver prices. guarantee meet manufacturing requirements lost sales adverse effect business.


risks reliance on third parties include for regulatory compliance quality assurance misappropriation intellectual property limited inventory possible breach agreement termination nonrenewal costly. if third-party damage loses benefits power outages financial difficulties raw materials reduction in efficiency may business disruption. other manufacturers delays increased costs business.


Counterfeit harm patients revenues earnings business.


industry challenged distribution counterfeiting markets Internet. parties distribute sell counterfeit manufacturing testing standards. counterfeit products indistinguishable authentic. Counterfeit medicines risk health safety unregulated unlicensed uninspected unsanitary lack regulation contents.


failure counterfeit medicines impact business reputation patient confidence lost sales recalls litigation. diversion products from reduced revenues profitability.


health crises pandemics epidemics business financial condition.


subject to risks global health crises epidemics pandemics outbreaks. COVID-19 pandemic impacted business financial condition lower sales reduced demand usage. health crises modify business practices actions patients customers employees business partners. business continuity plans health crises prevent crisis. Health crises impact operations manufacturing supply chain third-party suppliers sales marketing clinical trial operations. affect business financial results global economic conditions.


Innovative Medicine healthcare reforms pricing.


Sales Company’s Innovative Medicine MedTech products affected reimbursements government healthcare private insurance plans managed care. costs payors prices. increased purchasing power Medicare Medicaid private sector consolidation pricing pressures. recent legislation political scrutiny pricing pressures. Inflation Reduction Act 2022 products pricing rebates penalties. third-party utilization 340B Federal Drug Discount Program Company financial performance. markets EU Kingdom Japan China government involvement healthcare impose price controls limit products reduce intellectual property.


subject costly complex regulations countries operations affect financial business operations.


Item 1. Business Company subject to government laws regulations investigations legal action U. S. countries. changes U. S. FDA’s timing new products. New laws regulations impose deadlines Company suppliers manufacturers partners insufficient time manufacturing delays supply chain constraints. delays adverse effect sales access products.


Company proceedings expenses fines damage.


Johnson & Johnson subsidiaries subject claims lawsuits product liability patent disputes sales marketing pricing antitrust unfair trade practices consumer protection laws. legal proceedings Note 19 Consolidated Financial Statements. Litigation securities derivative action class action multi-district expensive disruptive. plaintiffs large amounts damages unresolved years. Company defendant lawsuits body powders talc JOHNSON’S Baby Powder sale opioids. defenses predict outcome. pay amounts settlements judgments accruals jointly liable. resolution increase accruals results cash flows. purchase third-party product liability insurance utilizes wholly owned captive insurance company limits.


reliability safety sales litigation reputational damage.


Concerns product safety alerts recalls investigations regulatory action. claims lawsuits fines settlements declining sales reputational damage. brand image equity trust. recalls investigations shutdown shortages sales declines remediation costs reputational damage civil penalties criminal prosecution.


scrutiny compliance investigations actions penalties.


laws regulations compliance costs failure investigations legal actions penalties. issues Manufacturing Practices lead fines penalties recalls shortages interruptions delays approvals litigation. marketing pricing sale products subject regulation investigations legal actions Federal Food, Drug Cosmetic Act Medicaid Rebate Program false claims unfair trade practices consumer protection laws. Scrutiny healthcare attorneys. investigations prosecutions penalties debarment healthcare programs. debarment business. investigations Note 19 Legal Consolidated Financial Statements Item 8.


tax laws liabilities impact results.


Changes tax laws including U. S. Organization Economic Cooperation Development EU non-EU global minimum tax impact Company’s tax rate results operations. change tax rate international tax provisions Company’s deferred tax assets liabilities. expense benefit Company’s Consolidated Statement of Earnings. Company monitors proposals. Changes tax laws expense benefit material fiscal quarter year.


Note 8 Consolidated Financial Statements 8.


Company conducts business files tax returns countries tax audits disputes. government initiatives companies disclose information audit scrutiny profits. Company assesses outcomes tax audits disputes tax reserves. authority tax liabilities reserves.


Company intellectual property business.


Company owns licenses patents proprietary rights products manufacturing processes. rights essential to businesses results operations. Public policy. unfavorable intellectual property rights. patent protection new products markets protections last.


Competitors challenge Company’s patents proprietary rights through litigation oppositions States Patent Trademark Office. proceedings absorb resources protracted unpredictable. products patents injunction damages royalties affect competitive position sales.


Company faced patent challenges parties generic biosimilar products expiration patents. U. manufacturers generic challenge validity products Abbreviated Drug Application. FDA litigation. Biologics Price Competition Innovation Act 2010,. biosimilar alternatives products mechanisms applicants challenge patents. IPR process USPTO used competitors challenge patents.


Company patents “at-risk” launch generic firm lose revenues. Current legal proceedings patents intellectual property rights Note 19 Legal Notes Consolidated Financial Statements Item 8 Report.


challenges delays innovation new products technologies long-term success.


growth depends new products services healthcare needs. Development successful products revenue losses products lose share competition loss patent exclusivity. New products past five years 25% 2023 sales. develop license acquire companies products technologies regulatory approval products successful.


Company pursues product development research collaborations acquisitions joint ventures licensing. developing new products biotechnology medical devices requires investment. few biopharmaceutical research result commercially viable products. process depends discern future needs develop compounds strategies technologies clinical trial results intellectual property protection regulatory approvals differentiate. New products enhancements accepted competition resistance uncertainty third-party reimbursement. success safety efficacy market entry competitive products.


Company leverages data science machine learning AI emerging technologies across business operations introduction AI may unintended risks liabilities. AI technology evolving may obsolete. investments benefits competitive advantage. machine learning AI emerging evolving new laws regulations costs limit. carry risks data privacy security.


Company faces financial economic legal risks.


Company’s operations financial economic legal social political risks.


currency exchange 2023 45% sales outside U. S 24% Europe 5% Western Hemisphere. 16% Asia-Pacific Africa. non-U. currencies. impact revenues expenses. financial instruments unhedged exposures subject currency fluctuations. weakening strengthening. dollar translation effects non-U. dollars


Inflation currency devaluation risks Company profitability high inflation. operations Argentina Turkey Venezuela inflationary inflation 100%. profit cost reduction productivity price increases losses inflation. currency devaluations


high inflation fluctuations impact results.


Illegal importation illegal importation from price controls lower prices affect sales profitability U. countries limited prescription drugs foreign imports illegal under U. S. law. volume illegal imports lower-priced imports.


Anti-bribery regulations Company subject federal foreign laws international business payments government officials. laws include. Foreign Corrupt Practices Act prohibits. companies promising foreign officials influencing advantage. business regulated involves interaction foreign officials. countries outside. healthcare providers government purchasers interactions FCPA. jurisdictions laws regulations U. K. Bribery Act 2010, corrupt anticompetitive behavior. Enforcement administrative legal proceedings civil penalties criminal sanctions remedies exclusion healthcare programs.


financial economic legal social political risks. business globally include environments policies interest rates monetary policy inflation growth recession commodity prices currency controls policies trade antitrust local regulations protection intellectual property contractual rights nationalization foreign assets upheavals economic instability repression human rights issues events disasters armed conflict terrorism epidemics pandemics.


international geopolitical global tensions war affect business financial condition.


Company has operations activity. Global tensions conflict war in foreign currency volatility decreased demand challenges supply chain increased costs. experienced impacts Russia-Ukraine war conflict Middle East tensions between U. S. China. governments may export controls financial economic sanctions. business impacted by trade protection policies domestic companies over foreign. Additional sanctions global community limitations file prosecute maintain patents trademarks intellectual property rights. Russia exploit inventions without consent compensation prevent third parties practicing inventions selling importing products.


performance credit rating disruptions liquidity capital borrowing costs access.


maintain investment grade credit ratings Moody’s Investors Service Standard & Poor’s Ratings Services. Rating agencies evaluate us based factors. downgrade credit ratings increase cost borrowing reduce market capacity commercial paper additional collateral derivative contracts. no maintain credit ratings changes downgrades liquidity capital position access markets.


business talented diverse workforce.


growth requires retain diverse backgrounds experiences skill sets. market skilled workers leaders competitive depends personnel. Maintaining brand reputation diverse equitable work environment top talent. less successful recruiting skilled workers leaders products services. succession planning important success. unsuccessful transfer knowledge transitions affect business financial condition results operations.


Climate legal measures affect business results.


Climate change carbon dioxide greenhouse gases risks temperatures weather patterns extreme weather disasters. hurricane tornado earthquake wildfire flooding risks disrupt supply chain. impacts water water scarcity water operational costs.


Concern over climate change requirements reduce greenhouse emissions mitigate effects. If laws stringent disruption costs manufacturing distribution affect business financial condition. impacts climate change customer preferences failure climate-friendly products loss market share.


incident cybersecurity breach business reputation.


Company relies on systems networks third parties sensitive data confidential research business plans financial intellectual property personal data supply chain operations. cybersecurity threats customer products confidentiality integrity sensitive data. assesses threats investments internal protection detection response third-party providers capabilities controls. changing attack techniques increased volume sophistication potential. reputational competitive operational business harm financial costs regulatory action. increasing use AI risks. maintains cybersecurity insurance coverage not all financial legal losses.


increased global tensions Company expects increased risk of information incidents adversaries operations. potential sophistication may address proactively preventative measures detect address disruption breach promptly affect business financial condition. threats could impact third-party partners IT systems networks data.


breach privacy unauthorized access loss personal data.


Company subject privacy data laws compliance collection storage protection personal data. Breach fines penalties claims damage reputation business. New privacy laws expected greater enforcement data localization international data flows. privacy compliance programs technology data-driven initiatives vendors third parties potential risks cross border data unauthorized access loss business.


Company achieve strategic financial benefits separation Kenvue Inc. ownership.


Company incurred expenses Kenvue separation. may achieve full strategic financial benefits. anticipated benefits based assumptions may incorrect. holds 9. 5% ownership Kenvue. predict price market value subject market volatility control. intends divest no timing. Unanticipated developments could divestiture financial market conditions.


Separation tax.


Company received IRS tax-free Separation U. S Internal Revenue Code 1986. IRS steps tax-free. tax liability Company shareholders substantial. Separation may not qualify tax-free other countries trigger substantial tax liability.


Company cybersecurity policies standards assesses risks monitors systems. uses security tools protection response. maintains cybersecurity incident response plan response incidents.


Company identifies third-party risks data security supply chain risk management program.


Company maintains security training program phishing email security practices. privacy.


cybersecurity Company utilizes third-party experts maturity.


Company cybersecurity incident business operations changing attack techniques increased volume sophistication potential. reputational competitive operational harm financial costs regulatory action. risk factor information security incident breach business Part I Item 1A. Risk factors cybersecurity risks impacts.


Company risk-based approach implemented controls threats risks. Chief Information Officer Executive Committee assessing risks prevention mitigation detection remediation.


CISO cybersecurity program risk. CISO twenty-five years experience security background technical strategy cyber threat leadership roles.


Board oversees risk management cybersecurity. Regulatory Compliance Sustainability Committee cybersecurity compliance laws regulations policies privacy cybersecurity.


RCSC meetings risk areas cybersecurity. CISO provides two updates RCSC cybersecurity. reports include cybersecurity threat landscape initiatives changes legal regulatory landscape incidents.


subsidiaries operate 61 facilities. million square feet. segments Innovative Medicine,026 MedTech Worldwide Total


U. five Innovative Medicine 18 MedTech. 13 Innovative Medicine 25 MedTech.


manufacturing Area Facilities Feet United States,973 Europe,900 Western Hemisphere. Africa Asia Pacific Worldwide#9,808


facilities Company maintains office warehouse facilities.


subsidiaries own manufacturing facilities. Office warehouse leased. engages contract manufacturers.


committed maintaining properties operating.


additions property plant equipment Note 17 Financial Statements Item 8.


incorporated Note 19 Legal proceedings Consolidated Financial Statements Item 8.


executive officers Company. no family relationships arrangement. elected one year until successors resignation. Vanessa Broadhurst Vice President Global Corporate Affairs Joaquin Duato Chief Executive Officer Peter M. Fasolo Ph. Human Resources Officer Elizabeth Forminard General Counsel William N. Hait. Chief External Innovation Medical Officer John C. Reed. Vice President Tim Schmid MedTech James Swanson Chief Information Officer Jennifer L. Taubert Innovative Medicine Kathryn E. Wengel Chief Technical Operations Risk Officer Joseph J. Wolk Chief Financial Officer


. Broadhurst Executive Vice President Committee 2022. 2017 Chairman Commercial Strategy 2018. 2013 2017 General Manager Amgen Inflammation Cardiovascular. leadership 2005-2013.


. Duato Chairman Board 2023 Chief Executive Officer Director 2022. Committee 2016 Vice President Worldwide Chairman Pharmaceuticals Vice Chairman. joined 1989 Janssen-Farmaceutica. executive positions sectors geographies.


. Fasolo Executive Committee 2011 Vice President Resources 2016. joined 2004 Vice President MedTech Chief Talent Officer. left 2007 Kohlberg Kravis Roberts. 2010 Resources.


. Forminard Vice President Counsel Committee October 2022. joined 2006, Medical Devices Consumer Group Supply Chain President Governance Pharmaceuticals.


. Hait Vice President Innovation Safety Health Officer Executive Committee. joined 2007 leadership roles


Janssen 2011 2018 Johnson Johnson 2022.


. Reed joined Company 2023 Executive Vice President Innovative Medicine member Executive Committee. Sanofi Roche. CEO Sanford-Burnham Medical Research Institute established research centers centers.


. Schmid Vice President Chairman MedTech 2023. joined 1993 Strategic Officer President Ethicon Chairman MedTech Asia Pacific 2018-2023.


. Swanson Vice President Chief Information Officer Executive Committee 2022. rejoined 2019 Bayer Crop Science Leadership Digital Transformation. 1996 2005,. Project Manager Director. Director Vice President.


. Taubert Vice President Worldwide Chairman Innovative Medicine Executive Committee 2018. joined 2005 positions North America Americas 2012-2018.


. Wengel Executive Vice President Operations Risk Officer 2023 2018 Supply Chain. joined 1988 Project Engineer Supervisor Janssen subsidiary. held strategic leadership executive positions operations quality engineering products technology.


. Wolk Vice President Chief Financial Officer Committee July 2018. joined 1998 Finance Manager Ortho-McNeil subsidiary. senior leadership roles Vice Janssen Pharmaceutical Investor Relations.


equity stockholder purchases securities


February 9 2024 118,772 holders common stock. Additional information sections Note 16 Stock Stock Option Plans Compensation 8 12 Ownership Owners Management Equity Compensation Plan.


September 14 2022 Company approved repurchase $5. billion Common Stock. completed quarter 2023.


table common stock purchases fourth quarter 2023. purchases plan compensation programs. repurchases include stock-for-stock option exercises. Period Shares. Price Paid Per Share Plans Programs Value October 2, 2023 October 29, 2023 November 26, 2023$147. November 27, December 31, 2023,265,000$156. 76 Total,390,000


fourth quarter 2023 repurchased 1,390,000 shares Johnson & Johnson Common Stock compensation programs.


analysis results financial


Johnson & Johnson subsidiaries 131,900 employees research manufacture sale healthcare. business countries focus human health well-being.


Company Innovative Medicine MedTech. Immunology Infectious diseases Neuroscience Oncology Pulmonary Hypertension Cardiovascular Metabolic diseases. retailers wholesalers distributors hospitals professionals. MedTech Orthopaedic Surgery Interventional Solutions Vision.


Executive Committee Johnson & Johnson strategic operations resources. Innovative Medicine MedTech.


product lines Company competes locally globally. Competition exists without size. Competition research improvement new products processes significant. development products protecting intellectual property important success. competitive environment requires investments research.


heart science ingenuity health. believes health everything. healthcare innovation diseases prevented treatments smarter less invasive solutions personal. expertise Innovative Medicine MedTech positioned healthcare solutions deliver breakthroughs impact health.


products years 25% 2023 sales. $15. 1 billion invested research-enhancing innovations value partnerships.


success diversity 131,900 employees. empowered inspired lead Credo purpose. reach purpose agility urgency. Leveraging resources execute excellence. unmet needs impact delivering value patients consumers healthcare professionals employees communities shareholders.


acquisitions research assets not accounted


operations financial fiscal years 2022 2021 Annual Report Form 10-K year 2023 Item 7. Management. Prior periods operations.


2023 sales increased. 5% $85. 2 billion. 6% 2022. changes increase Volume. 8. Price. Currency. Total. 5.


acquisitions sales growth. 5% 2023 no 2022.


. $46. billion 2023 $42. billion 2022. 6%. 3%. international $38. 7 billion $38. billion. 9%. 2%.


five-year growth. sales 4. 7% 2%. 1%. ten-year. sales 2% 7%. 6%.


2023 sales Europe. 2% operational 2. 2% positive currency. 0%. impact Covid-19 Vaccine loss exclusivity Zytiga sales negative 9. 8%. Western Hemisphere. 7% operational. 8% negative currency. 1%. Asia-Pacific Africa 3. operational growth. 5% negative currency. 6%.


2023 three wholesalers 18. 2% 15. 1%. 2%. 2022 three 18. 9% 15. 13. 8%.


Medicine sales 2023 $54. billion. 2% growth. 8% negative currency. 6%. $31. 2 billion. International $23. 6 billion. 5% decline. negative currency. 3%. divestitures. 1%.


Innovative Medicine sales Millions Immunology$18,052$16,935. REMICADE#2,343. SIMPONI,197,184. STELARA,858,723. TREMFYA,147,668. Other Immunology. Total Infectious Diseases,449. COVID-19 VACCINE,117,179. EDURANT/rilpivirine,150. PREZISTA PREZCOBIX/REZOLSTA/SYMTUZA#1,943. Other Infectious Diseases#318. Total Neuroscience,140#6,893. CONCERTA/methylphenidate#644.INVEGA SUSTENNA TRINZA,115,140. SPRAVATO#374. Other#1,553#1,734. Total Oncology,661,983. CARVYKTI#133 DARZALEX,744#7,977. ERLEADA,387. IMBRUVICA,264,784. ZYTIGA acetate#1,770. Other Oncology#438 Total Pulmonary Hypertension,815#3,417. OPSUMIT#1,973#1,783. UPTRAVI#1,582,322. Other Pulmonary Hypertension#313. Total Cardiovascular Metabolism Other,671,887.,365,473.,306#1,414. Total Innovative Medicine Sales$54,759#52,563.


Immunology $18. billion 2023. 6%. sales STELARA patient mix market Inflammatory Bowel Disease. TREMFYA market mix. SIMPONI outside U. S. Lower sales REMICADE biosimilar competition.


Biosimilar REMICADE introduced United States markets outside competitors. competition sales REMICADE.


Sales STELARA $7. billion 2023. parties filed License Applications FDA. settled litigation Biosimilar Price Competition Innovation Act 2009. launch biosimilar January 1, 2025.


Infectious sales $4. billion 2023. COVID-19 vaccine exclusivity PREZISTA.


Neuroscience sales $7. billion 2023. 6%. growth SPRAVATO launches physician confidence demand. offset declines paliperidone injectables. XEPLION loss.


Oncology $17. 7 billion 2023. 5%. DARZALEX driven share gains market growth. ERLEADA gains market growth Metastatic Prostate Cancer. CARVYKTI driven launch share gains capacity improvement. TECVAYLI TALVEY. offset ZYTIGA IMBRUVICA pressures.


Hypertension sales $3. billion. 6%. mix share gains market growth UPTRAVI OPSUMIT declines.


Cardiovascular sales $3. 7 billion. XARELTO patient mix access changes.


Company no delivery billing location. impacts pharmacy transactions non-grantee 340B entities drugs exceptions. grantee non-grantee entities maintain pharmacy arrangements exceptions. 340B discounts drugs believes inappropriate discounts diversion 340B. 340B Drug Pricing Program. federal discounts drugs. policy impacted sales 2023.


2023 Company submissions approvals new indications AKEEGA (Niraparib Abiraterone Acetate Dual Action Tablet BRCA-Positive Prostate Cancer BALVERSA (erdafitinib Urothelial Carcinoma Fibroblast Growth Factor Receptor Alterations CARVYKTI Relapsed multiple myeloma EDURANT (rilpivirine pediatric patients ERLEADA (apalutamide OPSUMIT OPSYNVI (mecitentan/tadalafil RYBREVANT (amivantamab Chemotherapy Advanced Non Cell Lung Cancer EGFR Mutations RYBREVANT lazertinib TECVAYLI Relapsed Refractory Multiple MyeBiweekly Dosing Relapsed Multiple Myeloma


MedTech sales 2023 $30. 4 billion. 8% 4% negative currency. 6%. U. S. $15. 3 billion. 2%. International $15. 1 billion. 7% operational. negative currency. divestitures 6% Abiomed acquisition.


MedTech franchise sales Millions Change Change Surgery$10,037#9,690. Advanced#4,671#4,569. General,366,121. Orthopaedics#8,587. Hips. Knees,359. Trauma,979#2,871. Spine Sports Other,947#2,843. Interventional Solutions,350,300. Electrophysiology#3,937. Abiomed,306 Other Interventional Solutions#332. Vision,072#4,849. Contact Lenses/Other,702#3,543. Surgical,370,306. Total MedTech Sales$30,400#27,427.. 4##.


Surgery franchise sales $10. billion 2023. 6% 2022. Advanced Surgery driven Biosurgery products Endocutters. offset procurement. General Surgery increased procedures technology Wound Closure portfolio.


Orthopaedics sales $8. 9 billion 2023 increase. 1% 2022. hips offset procurement Russia sanctions. knees driven procedures Robotic. offset stocking outside. Trauma global procedures products. offset procurement. Spine Sports Digital Solutions Shoulders Sports Craniomaxillofacial Russia sanctions supply constraints.


Interventional Solutions $6. 4 billion 2023. 7% 2022 Abiomed. Electrophysiology grew growth product execution. offset volume procurement China. Abiomed sales Impella.


Vision franchise $5. 1 billion 2023. 6% 2022. Contact Lenses growth ACUVUE OASYS 1-Day launches. offset. stocking Russia sanctions supply challenges. Surgical growth driven cataract stocking. offset Russia sanctions.


earnings taxes $15. billion $19. 4 billion 2023 2022. 7%. 2% 2023 2022.


billions. Percentages total sales


products sold selling marketing administrative expenses


products


products inflation mix restructuring inventory Abiomed amortization MedTech


COVID-19 costs 2023 Innovative Medicine


intangible asset $4. $3. billion 2023 2022.


Selling


Selling Marketing Administrative Expenses Innovative Medicine MedTech businesses


increase


Development


Research development expense segment business Millions Sales Innovative Medicine$11. MedTech. Total research development expense$15.$14. Percent increase prior year. percent segment sales


Research development business. expenditures discovering testing products upfront payments milestones improving efficacy regulatory compliance. high quality innovative products.


Research Development flat sales driven milestone payments Innovative Medicine research MedTech 2023


Innovative Medicine


-Process Research Impairments 2023 $0. 3 billion. 2 billion market dynamics non-strategic asset (M710) Momenta Pharmaceuticals 2020 2022 intangible impairment $0. 8 billion bermekimab drug Atopic Dermatitis Hidradenitis Suppurativa. development bermekimab. acquired rights bermekimab XBiotech. 2020.


Expense Net records gains losses sale write-down Johnson Johnson Innovation. fair value employee benefit programs divestitures currency acquisition divestiture costs accruals settlements royalty income.


(income expense fiscal year 2023 unfavorable $5. 8 billion prior year due/Expense Litigation. Changes fair value securities(2). COVID-19 vaccine manufacturing exit costs. Acquisition Integration Divestiture. Employee benefit plan. (Income Expense$6. 6.


$7. billion talc Note 19 Statements property. 3 billion. 2022 pelvic mesh.


fiscal 2023. billion change Kenvue. billion Idorsia debt change Idorsia equity securities.


Ponvory acquisition Abiomed. 2022 acquisition Abiomed.


2023 $1. 3 billion $0. 5 billion 2022 higher. expense $0. 8 billion. higher debt. Cash equivalents securities $22. 9 billion 2023 $22. 6 billion $22. 3 $26. 9 billion 2022. debt 2023 $29. 3 billion $34. 5 billion $39. 6 billion 2022 $36. 7 billion. lower Abiomed. lower debt repayment commercial paper.


Income tax segment Sales Millions Innovative Medicine$18,246,647#54,759. MedTech####4,447,400. Segment earnings,915,159,990. Expenses not allocated Worldwide income before tax$15,062,359#85,159,990.


Note 17 Statements.


not allocated include interest. 2023 $7. billion charge. 4 billion change stake Kenvue.


Medicine


Innovative Medicine income. 3%. 8% 2022. COVID-19 Vaccine exit costs. 7 billion $1. 5 billion research development impairments. 2 billion. billion value securities. 4 billion. expense. 2 billion selling marketing expenses&D Portfolio prioritization


. billion. billion 2022 Ponvory milestone payments


segment


2023 MedTech income tax 15. 4% 16. 2% 2022. amortization expense $0. 5 billion Abiomed $0. 4 billion asset Laminar inflation


litigation. billion. 6 billion 2022 Abiomed. 2 billion. 3 billion 2022 marketing expenses


fiscal 2023 Company Innovative Medicine promising medicines benefit. programs. exits infectious diseases vaccines vaccine hepatitis HIV. pre-tax restructuring $0. 5 billion 2023 $449 million Restructuring $30 million Consolidated Statement Earnings termination costs asset impairments.


2023 Company restructuring Orthopaedics franchise markets product lines distribution. pre-tax restructuring $0. 3 billion $40 million Restructuring $279 million Cost inventory instrument charges exits.


2022 Company pre-tax charge. 4 billion Global Supply Chain. announced 2018 completed 2022.


20 Consolidated Statements restructuring.


Taxes tax. 5% 2023. 4% 2022.


December 15, 2022 European adopted Pillar Two Directive minimum tax rate 15% supported 130 countries. December 31, 2023 EU non-EU countries enacted Pillar 2 legislation January 1, 2024 2025. 2024 tax rate 1. 5% 150 points 2023. legislation events impact estimate.


2023 Note 8 Consolidated Statements.


$21. billion 2023 $14. billion 2022.


sources $7. 8 billion increase $14. 2022 equivalents. operating. investing. financing. exchange rate rounding $21. 2023 equivalents


Company $1. billion 2023 $9. 4 billion 2022. 1 Consolidated Statements cash securities.


Cash $22. 8 billion $35. Earnings. Kenvue separation sale deferred tax non-cash expenses adjustments depreciation amortization stock compensation write-downs. liabilities. assets. accounts payable accrued liabilities. accounts receivable inventories $22.


Cash flow investing activities $0. 9 billion due. property equipment. disposal. research development. sales investments (3. support agreements. cash


Cash $15. 8 billion due. common stock. repayment short long term debt. stock options withholding tax. support agreements. short long debt issuance cost Kenvue. Kenvue initial public offering. transferred Kenvue separation. cash financing


December 2023 Company-term debt cash equivalents securities. net debt $6. 4 billion $17. 4 billion. debt balance 2023 $29. 3 billion $39. 6 billion 2022. re-evaluated cash flows liquidity risk. cash flows borrowing capacity commercial paper markets remaining balance opioid litigation $2. 1 billion $9 billion reserve talc Note 19 Financial Statements. monitors capital markets raise capital.


May 8 2023 Kenvue 198,734,444 shares $0. 01 share $22. 00 share proceeds $4. 2 billion. excess Johnson & Johnson $2. 5 billion capital. Johnson Johnson 89. 6% shares Kenvue July 2, 2023 non interest $1. 3 billion balance.


August 23, 2023 Johnson Johnson. 1% Kenvue Common Stock 190,955,436 1,533,830,450. $31. 4 billion Treasury. owns 9. 5% Kenvue $4. 3 billion August 23, $3. 9 billion December 31, 2023.


Johnson $11. billion August 2023 loss Consumer Health $4. 3 billion. exchange


Johnson Johnson decreased non-controlling interest $1. 2 billion deconsolidation Kenvue. gain exchange $21. billion earnings third quarter 2023. $2. 8 billion Kenvue Common Stock. tax-free.


14 2022 Company repurchase $5. billion Common Stock. $2. 5 billion repurchased. 2023 $2. 5 billion repurchased.


table summarizes obligations maturities December 31, 2023 cash. Legislation Obligations 2024,341 2025,700,025 2026,741 2027 2028#691 2028,539#8,706,245 Total$4,565,350#12,509#44,424


tax 8 Statements.


Company uses financial instruments impact foreign exchange rate changes cash flows. enters exchange contracts assets liabilities future transactions product costs. Gains losses offset underlying transactions. 10% appreciation. Dollar unrealized value contracts $0. 1 billion. 10% depreciation. $0. 1 billion. offset underlying transaction impact future earnings cash flows.


Company hedges assets currency swap contracts. 1% change spread U. S. foreign interest rates unrealized value swap contracts $1. 6 billion. maturity swap contract offset underlying transaction impact future cash flows.


Company trading speculative. investment grade credit rating. counterparties institutions no concentration exposure. risk loss remote. credit support agreements derivative counterparties collateral thresholds credit ratings. Note 6 Consolidated Financial Statements.


Company invests fixed floating securities risk. value fixed interest rates floating less income rates. 1% change spread interest investments value cash equivalents securities less $0. 8 billion.


Company banks. 2023 secured 364-day Credit Facility $10 billion expires September 5 2024. terminated 364-day Credit Facility $10 billion November 21, 2023. Interest market margins. Commitment fees.


borrowings 2023 2022 $29. 3 billion $39. 6 billion. repayment commercial paper. $6. 4 billion $17. 4 billion 2022. debt. 2023 34. 2022 equity share $28. 57 $29.


borrowings 7 Consolidated Statements.


increased dividend 61st. dividends $4. 45 2022.


January 2 dividend $1. 19 share March 5 2024 shareholders.


financial condition consolidated financial statements accounting principles. estimates assumptions revenues expenses assets liabilities disclosures. results differ. understanding accounting policies estimates results financial condition. revenue recognition income taxes legal self-insurance contingencies valuation long-lived assets assumptions pensions benefit plans stock awards.


Revenue Recognition Company recognizes revenue sales obligations. global payment terms 30 to 90 days. rebates sales incentives promotions coupons returns discounts clawback sales.


discounts arrangements market participants conditions competitor pricing. Rebates estimated terms experience patient outcomes trend analysis market conditions markets. Company evaluates market research data internally information.


Sales returns estimated recorded historical. unusual patterns dating competition marketing investigated analyzed.


Sales returns reserve products returned expiration recall. based on trends sales. issues credit for returned goods. accounted U. S GAAP. recorded at full sales value. Innovative Medicine not resalable. MedTech resalable. exchanges for returned. returns reserve less than 1. 0% of annual net trade sales 2023 2022 2021.


Promotional programs product listing recorded sales volume-based incentive programs. estimated sales recorded sold. evaluated revenue. Company earns profit-share payments included sales. Profit-share payments less than 2. 0% 2023 less than 3. 0% 2022 2021.


Company enters revenue activities. Amounts due recognized selling price. Upfront fees deferred recognized performance. Note 1 Consolidated Financial Statements.


changes assumptions rebates returns promotions financial statements. Company discloses impact quarterly annual filing financial impact.


tables rebates returns promotions accounts cash discounts years December January 1.


Millions End 2023 rebates$12,289(45,151,661 returns promotions$12,939,867,301 Reserve doubtful accounts cash discounts,386,385$13,093,253,445 2022 rebates$10,331,289 returns promotions Subtotal$10,854(41,390,939 Reserve doubtful accounts cash discounts(1,265) Total$10,998,756(42,661,093


rebates $165 million $203 million January asset.


Millions Credits End 2023$1,470,241,256 returns promotions$1,647(6,912) Reserve doubtful accounts cash discounts#96$1,781(7,037) rebates(1)$1,446,131,107)#1,470 returns#531 promotions$1,634(6,751)#1,647 Reserve doubtful accounts cash discounts#99$1,792(6,880)


rebates $740 million $802 million January asset.


Income Taxes refundable payable difference. GAAP accounting tax reporting deferred tax assets liabilities. Company estimates tax regulations rates. affect.


Company unrecognized tax benefits uncertain positions. follows. GAAP threshold measurement attribute financial tax position. changes results cash flows financial position.


Company recorded deferred tax liabilities earnings December 31, 2017 international subsidiaries. not provided deferred taxes earnings January 1, 2018 indefinitely reinvested. intends continue. earnings. net tax effects. estimates tax effect approximately $0. 5 billion laws rates. foreign tax credits offset cost.


Note 8 Consolidated Financial Statements.


Legal Self Insurance Contingencies Company records accruals contingencies legal product liability. accruals judgment probability losses estimates. self insurance-owned captive. claims coverage accrued losses estimated.


Company. GAAP litigation contingencies. liability recorded loss.


Notes 19 Statements liability proceedings.


Long-Lived Intangible Assets Company assesses economic assumptions cash flows property plant equipment goodwill intangible assets. assumptions impairment charges.


Employee Benefit Company sponsors retirement pension defined benefit termination indemnity. discount return mortality salary healthcare attrition. Note 10 Financial Statements.


Stock Based Compensation Company recognizes compensation issuance equity instruments. fair value estimated Black-Scholes expensed financial statements period. assumptions expected life volatility risk-free rate dividend yield. performance share units fair market value calculated operational earnings per share shareholder return. earnings per share estimated fair market value discounted dividends not. total shareholder return estimated Monte Carlo valuation model. Note 16 Consolidated Financial Statements.


Note 1 Consolidated Financial Statements adopted December 2023.


Company products policymakers consumers businesses rising cost healthcare. policy pricing responsibly. 2013 - 2023. growth rate net price increases healthcare products below U. S. Consumer Price Index).


Company operates countries economic conditions challenges. actions. Inflation rates economies companies. operations Argentina Venezuela Turkey 2022 highly inflationary prior three-year inflation surpassed 100%. results. profit margins cost reduction productivity improvements price increases.


December 2023 Argentine government devalued peso 50%. Company recorded $130 million inflationary accounting. Argentine subsidiaries less. 0% assets liabilities revenues profits exchange rate 2024 results.


July 2023 Janssen Pharmaceuticals. litigation. Department Health Services Centers Medicare Medicaid Medicare Drug Price Negotiation Program. violates First Fifth Amendment not subject pricing.


-term implications invasion Ukraine difficult financial impact conflict fiscal year 2023 not material. Russian subsidiaries less 1% assets 1% revenues. maintain Ukraine subsidiaries Kenvue separation.


early March 2022 Company advertising clinical trials investment Russia. products healthcare.


long-term Israel conflict difficult financial impact fiscal year 2023 material. 2023 Israel subsidiaries 1% assets less than 1% revenues.


Company exposed currency exchange. 1% change. Dollar foreign currencies 2023 foreign sales. 4 billion net income. 2 billion.


Governments consider tax laws increasing tax rates. companies disclose information tax greater audit scrutiny profits. change tax rate revaluation Company’s deferred tax assets liabilities. expense benefit Company’s Consolidated Statement of Earnings. Company monitors proposals. Changes tax rate may occur related expense benefit material to fiscal quarter year law.


Company healthcare changes pricing cost containment legislation promotions pricing reimbursement.


healthcare delaying procedures rationing medications reducing visits foregoing insurance impact businesses.


Company operates environment hostile intellectual property rights. Firms filed New Drug Product U. FDA challenged Company patents market generic biosimilar forms products prior expiration patents. patent claims generic biosimilar versions introduced market share revenue losses non impairment charge intangible asset. risk competitors launch generic biosimilar regulatory approval valid patents.


Johnson Johnson subsidiaries liability intellectual property employment indemnification governmental investigations legal proceedings.


Company records accruals for loss contingencies probable liability estimated. As December 31, 2023 determined liabilities litigation probable estimated. accrued monitor adjust accruals new information ASC 450-20-25, Contingencies. loss probable unable estimate loss beyond amounts accrued. Amounts accrued contingencies result from complex judgments estimates assumptions. affected by factors damages unsubstantiated discovery early legal uncertainties facts dispute procedural jurisdictional issues claims settlements complexity cross-claims counterclaims numerous parties. adverse awards judgments verdicts rendered against Company record accrual until loss probable estimated.


Company's opinion examination experience discussions counsel ultimate outcome legal proceedings net liabilities not expected financial position. resolution increase accruals period may's results operations cash flows.


Note 19 Consolidated Financial Statements 8.


Stock New York Stock Exchange JNJ. 2024 118,772 holders.


information 7. financial condition Liquidity capital resources Financing market risk Note 1 accounting policies Financial instruments Statements Item 8.


balance sheets statements earnings income equity cash flows


accounting firm ID 238) financial reporting


Millions Amounts Cash equivalents$21,859,889 securities,392 Accounts receivable $166,039 Inventories,181,268 Prepaid expenses receivables#2,876 assets operations,495,294 Property plant equipment,898,982 Intangible assets,175,489 Goodwill,558#36,047 Deferred taxes,279 assets,153,212 Noncurrent assets$167,558,378 Liabilities Equity liabilities Loans$3,451,756 Accounts payable#9,889 Accrued liabilities,212,719 rebates returns promotions,001,579 compensation obligations taxes,993,220 liabilities,282,802 Long-term debt,886 Deferred taxes,193#3,991 Employee obligations9 10,149 taxes,306,398,146 discontinued operations,901,784,574 Commitments Contingencies Preferred stock 2,000,000 shares Common stock $1. share 4,320,000,000 shares issued 3,119,843,000 shares income,967 earnings,843,345 common stock (712,765,000 506,246,000,662 equity,774 liabilities,558,378


Shares Millions Share Sales$85,159,990,740 products,553#24,596,402 Gross profit,606,394,338 Selling marketing administrative expenses,246,118 Research development,085,135,277 research Interest income,261) expense#276#183 expense#810#526 Restructuring#275 Earnings taxes,062,359,178,989,377 earnings operations,326,370,801 discontinued tax#1,571#3,077$35,153#17,941,878 share operations. 26. 23. 76 Discontinued. 62. net earnings share. 88. 83. 93 diluted. 66. 52. earnings share. 72. 73.81 Average shares 1 15.#2,625#2,663.#2,674


earnings$35,153#17,941,878 income Foreign currency,221)(1,796)(1,079) Securities Unrealized gain Reclassifications Employee benefit plans service credit amortization,183)#1,854,318 Consumer settlement exchange rates,399)#1,805,255 Derivatives hedges Unrealized gain Reclassifications(789(988 income(4,741)#2,184$30,412,032#23,062


tax Foreign Currency $797 $346 Employee Benefit Plans $289 $1,198 Derivatives Hedges $39 $263.


Earnings capital Stock Stock January 3 2021,278,890,490 earnings,878 Cash dividends$4. 19 share Employee compensation stock option,171 Repurchase common stock Balance January 2 2022,023,060,120 Cash dividends$4. 45 share Employee compensation stock,466 Repurchase stock tax Balance January 1 2023,345,967,120 earnings,153 Cash dividends$4.share Employee compensation stock option,193 Repurchase common stock,054) Kenvue Separation,786,451 income tax Balance December 31, 2023,774,843,662


Cash Net earnings,153,878 Adjustments Depreciation amortization property intangibles,390 Stock compensation,162,138,135 Asset write-downs purchase assets Gain Kenvue separation,984) gain sale Deferred tax,194)(1,663)(2,079) Credit losses accounts receivable Changes assets liabilities divestitures Increase accounts receivable(1,290) inventories,323)(2,527) accounts payable accrued liabilities,437(3,480)(1,964)(1,979),061) cash flows,791,194 Additions property plant equipment(4,543),009,652 disposal Acquisitions Purchases-process research development assetsPurchases,906)(32,384,394) Sales,390,609,006 Credit agreements,963)#214 licenses milestones cash,371)(8,683) financing Dividends Repurchase common stock,054)(6,035)(3,456) Proceeds short-term debt,743,134#1,997 Repayment(22,973),550),190) issuance costs(1,551),134(1,802) stock options withholding tax,329#1,036 Credit support agreements Proceeds short long issuance Kenvue Kenvue public offering,241 Cash Kenvue,114 cash financing activities(8,871)(14,047) exchange rate Increase cash#7,732(360)equivalents,889,309,697,178#1,288,127,487,985 end,859,889,309 end#1,178 end year,859,127,487 Supplemental cash flow Cash Interest$1,836##982#990#1,766##933##941 Income taxes discontinued operations#8,574#5,223#4,768 non investing financing Treasury stock employee compensation stock option plans cash withholding tax$1,435#2,114#1,811 assets acquired#18,710 liabilities assumed(1,058) cash,652


discontinued operations.


consolidated statements Johnson subsidiaries. Intercompany eliminated. Columns rows. Percentages calculated figures.


Company has 131,900 employees research development manufacture sale healthcare. business countries focus human health well-being.


May 8 2023 Kenvue 198,734,444 shares $0. 01 share $22. 00 share proceeds $4. 2 billion. excess Johnson Johnson $2. 5 billion paid capital. Johnson Johnson 89. 6% shares Kenvue July 2, 2023 non-controlling interest $1. 3 billion second quarter 2023.


August 23, 2023 Johnson & Johnson 80. 1% ownership Kenvue exchange offer. Company owns 9. 5% shares Kenvue equity investment. Consumer Health discontinued operations Consolidated Financial Statements exchange Note 21. Johnson & continuing operations.


exchange Company Innovative Medicine MedTech. Medicine Immunology Infectious diseases Neuroscience Oncology Pulmonary Hypertension Cardiovascular Metabolic diseases. retailers wholesalers distributors hospitals professionals. MedTech Orthopaedic Surgery Interventional Solutions Vision.


2022 Liabilities 405-50 Obligations


Company adopted standard fiscal 2023 buyer supplier finance program.


Company has agreements supplier finance programs with financial institutions. programs finance payment obligations. not party arrangements. obligations amounts payment dates 90 not affected by decision.


December January 1. 7 billion obligations. Consolidated Balance Sheets.


2023 Reporting 280 Disclosures


update requires expanded disclosures segment expenses chief profit loss. effective fiscal years December 2023 applied financial statements. Early adoption permitted. impacts disclosures Consolidated Financial Statements.


2023 Taxes 740)


update standardizes tax rate reconciliation requires disaggregation disclosures. periods December 15 2024. impacts disclosures Financial Statements.


Company classifies investments three months cash equivalents than marketable securities. institutions investment grade credit rating. invests cash government corporate debt money market funds reverse repurchase agreements.


RRAs collateralized by Government Securities Obligations 102% value. Company record asset liability permitted sell repledge collateral. collateral A credit rating. third party custodian collateral 102%. RRAs maturities three months marketable securities.


maturity amortized cost gains losses earnings.-sale debt securities estimated fair value unrealized gains losses income. securities operations current assets long term. Management determines classification re-evaluates. reviews impairment adjusts fair value earnings.


Property plant equipment cost. Company Building equipment 30 Land 10 20 Machinery 2 - 13


Company capitalizes software development costs internal use. costs amortized lives 3 to 8 years.


Company reviews long-lived assets recoverability cash flows. impairment assessment recoverability


value. impaired loss difference fair carrying value. prices Company fair value discounted future cash flows.


recognizes revenue sales obligations. payment terms 30 to 90 days. rebates sales incentives promotions coupons returns discounts clawback variable sales. liability rebates returns promotions consolidated balance sheet.


discounts market participants conditions competitor pricing. Rebates estimated experience patient outcomes trend analysis market conditions. liability Company products. Managed Care Medicare Medicaid $11. 5 billion $9. 6 billion December 31, 2023 January 1, 2023. evaluates market wholesaler research information.


Sales returns estimated recorded historical. unusual patterns dating competition marketing investigated analyzed.


Sales returns reserve products returned expiration recall. based on trends sales. issues credit for returned goods. accounted U. S. GAAP. recorded at full sales value. Innovative Medicine not resalable. MedTech resalable. exchanges for returned. returns reserve less than 1. 0% of annual net trade sales 2023 2022 2021.


Promotional programs product listing recorded sales volume-based incentive programs. estimated sales recorded sold. evaluated revenue. Company earns profit-share payments included sales. Profit payments less than 2. 0% 2023 less than 3. 0% 2022 2021 included sales.


Note 17 Statements disaggregation.


Shipping handling costs. 9 billion. 2023 2022 2021 included selling marketing administrative expense. revenue less. sales.


Inventories lower cost first-in method.


. GAAP goodwill assets impairment. Company completed impairment test 2023. impairment


tests performed annually fiscal fourth quarter sooner warranted. Purchased-process research accounted indefinite until project. warranted written impaired underlying program.


Intangible assets finite reviewed economic. Note 5 Intangible Assets Goodwill.


. GAAP derivative instruments recorded balance fair.


price sell asset transfer liability. Fair value market-based measurement assumptions. literature establishes three-level hierarchy Level 1 highest Level 3 lowest. Changes fair value derivatives recorded earnings income hedge transaction type.


Company documents relationships hedged derivatives. risk management strategy includes transactions derivatives. objectives currency protect cash flow ensure appropriateness financial instruments manage risk. Note 6 Financial Instruments.


Company determines property plant equipment. Right Use Assets Lease Liabilities Other assets Accrued liabilities consolidated balance sheet. ROU Assets right use lease liabilities obligation payments. Commitments finance leases included Property plant equipment Loans notes Long-term debt.


Assets Lease Liabilities recognized lease commencement present value lease payments. Company uses incremental borrowing rate. Lease terms options extend terminate. Operating lease expense recognized straight-line term. Company elected policy elections portfolio approach exclusion short term leases not separating lease non-lease components.


Company space vehicles manufacturing data processing. ROU asset $1. billion 2023 2022. lease liability $1. 1 billion. lease costs. 2 billion. Cash paid liabilities $0. 2 billion.


Accruals product liability claims recorded probable liability incurred estimated information estimates. accruals adjusted additional information. Company accrues legal defense costs probable estimated. adverse verdicts record accrual until loss probable estimated.


Company self insurance wholly-owned captive company. claims losses probable amounts estimated.


Research development expenses ASC 730. Upfront milestone payments third parties regulatory approval. Payments capitalized amortized life product. capitalized included intangibles accumulated amortization.


Company enters collaborative arrangements with biotechnology companies develop commercialize drug candidates intellectual property. arrangements involve parties exposed to risks rewards commercial success. involve activities research development marketing selling distribution. require upfront milestone royalty profit payments contingent future events. due from partners research development expense central operations. income statement presentation Collaboration Third-party sale product profit share payments to customers Royalties/milestones partner products sold Royalties income Upfront payments milestones development expense payments expense


Milestones capitalized amortized products.


years no project 5% research development expense.


Company products compounds XARELTO Bayer HealthCare IMBRUVICA Pharmacyclics AbbVie.


Company licensing DARZALEX Genmab.


advertising expensed selling marketing administrative. expenses. 5 billion. 7 billion. 2 billion 2023 2022 2021.


taxes recorded current difference. GAAP reporting deferred tax assets liabilities.


estimates deferred tax assets liabilities regulations rates. affect.


Company unrecognized tax benefits uncertain positions. follows. GAAP threshold measurement attribute financial statement tax position. changes results cash flows financial position.


2017. Tax Cuts Jobs Act. corporate income tax tax 35% 21% January 1, 2018. tax undistributed earnings. companies foreign jurisdictions. cash equivalents taxed 15. 5% 8. 0%. payable 8 years interest. payments 2018 continue 2025. remaining balance 2023 $4. 5 billion $2. 5 billion noncurrent-term taxes.


TCJA includes tax intangible low-taxed income (GILTI. excess U. S. shareholder’s foreign income over return tangible assets. January 2018 FASB guidance companies tax effects GILTI. deferred tax assets liabilities differences GILTI. Company GILTI deferred method. deferred tax amounts based temporary differences GILTI.


Company recorded deferred tax liabilities earnings December 31, 2017 international subsidiaries. not provided deferred taxes earnings January 1, 2018 indefinitely reinvested. intends continue. earnings. net tax effects. estimates tax effect approximately $0. 5 billion laws rates. foreign tax credits offset cost.


Note 8 Consolidated Statements.


earnings per share net earnings shares. Diluted earnings dilution securities converted stock treasury method.


consolidated financial statements. estimates. sales discounts rebates allowances liabilities taxes depreciation amortization benefits contingencies liability valuations. results differ estimates.


Company follows. GAAP litigation contingencies. liability recorded loss probable estimated. best estimate accrued minimum accrued.


Company follows fiscal year ends Sunday December. 52 weeks five or six years 53 weeks includes additional shipping days 2020 2026.


fiscal year 2023 2022 cash equivalents securities Amount Loss Value$3,340 Non-U. S. Sovereign. Reverse repurchase agreements Corporate debt Money market funds Time Subtotal$14,053. Gov't Securities. Gov't Agencies Sovereign Securities Corporate debt securities Subtotal$8,875 cash equivalents securities$21,859 Millions Amount Loss Fair Value Equivalents$3,691.repurchase agreements Corporate debt Money market funds,368 Time Subtotal,794,793,921. Gov't Securities$9,959. Gov't Agencies Corporate debt securities Subtotal$10,521,487 cash securities$12,889


investments amortized cost gains earnings.


securities value unrealized gains losses taxes.


government securities corporate estimated broker prices inputs.


contractual maturities December 31, 2023 Millions Basis year$8,865,864 ten debt securities$8,875#8,874


Company invests cash banks high-quality market instruments. institutions investment grade credit rating.


2023 2022 inventories materials supplies$2,355 Goods process Finished inventories$11,181,268


2023 2022 property plant equipment depreciation Land improvements$795 Buildings,375,470 Machinery,979,603 Construction gross$47,776#43,534 depreciation,878,552 net$19,898,982


Company capitalizes construction facilities. 2023 2022 2021 $70 million $49.


Depreciation capitalized interest 2023 2022 2021. billion. 4.


retirement disposal property costs eliminated asset accounts. difference net asset value proceeds recorded earnings.


2023 2022 gross net intangible assets Patents trademarks$40,417,388 amortization(20,616)$15,609,772$20,322,764 amortization,685(11,363)$7,637#8,401 indefinite lives Trademarks$1,714#1,630 research development,215#9,686$10,929#11,316 net$34,175#38,489


Goodwill December 31, January 1, 2023 allocated segment business Millions Medicine Goodwill January 2, 2022,580,436 acquisitions,056 divestitures January 1 2023,184,863 divestitures December 31, 2023$10,407,151,558


patents trademarks 11. customer relationships intangible assets 19 years. $4. 5 billion $3. 9 billion $4. 2 billion tax 2023 2022. Intangible write-downs.


estimated amortization expense intangible products five years 2024 $4,300,900,600


Note 18 Statements divestitures.


Company uses foreign exchange contracts cash changes products purchases. cross currency interest rate swaps currency risk borrowings. cash flow hedges.


Company uses interest rate swaps risk borrowings. fair value hedges. cross currency swaps forward foreign exchange contracts net investment hedges. contracts foreign currency assets liabilities. not hedges recognized earnings foreign assets liabilities.


Company derivative instruments. maintains credit agreements counterparties collateral thresholds ratings. December January 1 2023 cash collateral paid $4. 0 billion $0. 8 billion net investment cash flow hedges. monitors counter-party credit ratings. credit non-performance risk low agreements investment grade. liabilities. December 31, 2023 amounts $42. 9 billion $39. 7 billion $10. 0 billion. January 1, 2023 $41. 5 billion $36. 2 billion $10. 0 billion.


derivative instruments recorded balance sheet fair value. Changes value recorded earnings income hedge transaction type.


cash flow hedge entrance derivative contract. derivatives effective. exchange contracts cash hedges accounted forward method gains/losses recognized income impacts earnings. Changes value recorded income transaction earnings reclassified earnings.


Gains losses interest rate swaps hedged debt recorded interest expense. Gains investment hedges accounted currency translation account income. portion excluded recorded interest expense. Company assesses derivative hedged items. hedge accounting discontinued.


Company Euro notes May 2016 dates 2022 2035 investment hedge subsidiaries Euro reduce volatility exchange rates.


December 31, 2023 deferred loss derivatives $377 million after-tax. Consolidated Statements Income Note 13. expects foreign exchange contracts earnings 12 months. maximum hedging 18 months excluding investment hedges. earnings exchange rates. gains losses determined exchange rates maturity.


table activity derivatives hedges years December 31, January 1, 2023 net tax 31, 1 2023 Millions Products Sold&D effects fair value net investment cash flow hedging Gain (Loss fair value hedging relationship Interest rate swaps contracts Hedged items Derivatives hedging instruments Gain (Loss net investment hedging Cross currency interest rate swaps contracts gain income derivative amount excluded effectiveness testing cash flow hedging foreign exchange contracts gain AOCI incomerecognized AOCI#447#319 Cross currency interest rate swaps contracts gain reclassified AOCI income#275#425 gain recognized AOCI#42#


December January 1, 2023 amounts consolidated balance sheet adjustment value hedges Amount Hedged Amount Hedging Adjustment Millions 31, 1 Long-term Debt$8,862$8,665(1,216)(1,435)


table effect derivatives years December 31, January 1, 2023 Millions Gain Derivatives Hedging 31, 1, 2023 Foreign Exchange Contracts expense


effect net investment hedges years December 31, January 1, 2023(Loss Recognized OCI Reclassified Income Reclassified Income Millions 31, 1 Debt expense Cross Currency interest rate swaps


Company holds equity with values without. measures investments at cost minus changes price changes in transactions for same issuer.


table activity equity investments years December January 1 2023 1 2023 Millions Value Value Net Purchases Current Assets Equity Investments value$576,265 Investments without value


2 2022 1 2023 Millions Value Value Net Purchases Current Assets Equity Investments value$1,884#576 value$413


Includes. 5% Kenvue. 4 billion change separation fiscal.


fiscal years January 1 equity investments market values $1 $51 million changes impairments. offsetting impacts $27 million $142 million prices gains disposal.


Fair value exit price sell asset transfer liability. market-based measurement assumptions pricing. ASC 820 three-level hierarchy inputs value. Level 1 highest 3 lowest.


fair value derivative instrument. foreign exchange future cash flows discounted present interest rates converted. S. Dollar current exchange rate. Company values differ settlement maturity changes results cash flows financial position. holds equity investments Level 1 debt securities Level 2. holds acquisition contingent liabilities Level 3 determined discounted cash flow methodologies.


three levels fair value


prices assets liabilities.


Significant inputs.


inputs.


financial assets liabilities fiscal December 31, 2023 January 1, 2023 Millions 1 2 3 hedging instruments Assets foreign exchange contracts#629 contracts#1,534#2,163 Liabilities contracts,338,778#3,289 Derivatives Assets foreign exchange contracts Liabilities Investments Equity investments(3) Debt securities(4),874,487 Contingent Consideration(5),120 Gross Net Derivative Reconciliation Millions Gross Assets,201 Credit Support Agreements,176 Net Liabilities#3,357 Credit Agreements(3,023)Liabilities


liabilities Millions Beginning Balance$1,120#533 estimated value(52) Additions#792 Payments(48) Ending Balance$1,092#1,120#533


liabilities 2 equity $576 million contingent $1,120 million 3.


currency rate swaps.


non-current.


cash securities.


$1,092,116 $520 million non liabilities 2 2022. $4 million $13 million current liabilities January.


2022 $704 million Abiomed.


Notes 2 7 liabilities Balance Sheet.


components long-term debt (Dollars Millions#2023 Rate. 73% Debentures 2023. 375% Notes due 2023. 2 05%. 650% Notes 2024 (750MM Euro 1. 50% Notes 2024 (500MM. 2756 GBP. 625% Notes due 2025. 55% Notes due 2025. 46% Notes 2026. 95% Notes 2027. 95% Notes 2027. 150% Notes 2028 (750MM Euro. 90% Notes 2028. 95% Notes 2029. 30% Notes 2030.95% Debentures 2033##499. 375% Notes 2033. 650% Notes 2035. 587% Notes 2036#. 95% 2037##994. 625% 2037,357. 85% 2038##697. 400% 2038#993. 50% Debentures 2040##541. 10% 2040#849. 85% 2041##297. 50% Notes 2043##496. 73% 2046##1,977. 75% Notes 2047##832. 500% 2048##743. 250% 2050#. 450% 2060#.49 Subtotal,350. 98,437. Less portion long-term debt$25,881$26,886


average.


December 31,.


rate 2023.


excess carrying debt $1. billion. billion 2023 2022.


long-term debt estimated market broker inputs.


Company banks. 364-day Credit Facility $10 billion expires September 5 2024. terminated 364-day Facility $10 billion November 21, 2023. Interest SOFR Reference Rate market rates margins. Commitment fees.


2022 liquidity commercial paper. debt $3. 5 billion $12. 8 billion. debt $1. 5 billion $1. 6 billion remainder commercial paper local borrowing.


debt balance December 31, 2023 $2. billion. 37% two months. January 1, 2023 $11. 2 billion. 23% two months.


maturities debt obligations 2024 Millions 2024 $1,469,700,539


taxes income payable. taxes,705,274,338 International,295 Deferred. taxes(3,440),990 International(2,595) deferred,059)(1,580)(2,030) taxes income$1,736,989,377


comparison income tax expense U. rate 21% years 2023 2022 2021 effective tax rate Millions.,275 International,095,753,903 Earnings before taxes$15,062,359,178 Tax rates. statutory rate. International. Tax Settlements. taxes international. Tax benefits loss capital assets. Tax benefits share compensation. Effective Rate.


operations reflect impacts tax rates. Ireland Switzerland Belgium Puerto Rico effective tax rate U.


GILTI tax Foreign-Derived Intangible Income deduction taxable. 2023 2022 2017 TCJA. 2023 foreign subsidiaries tax legislative 2021 reorganization international subsidiaries.


2023 tax rate decreased. 9% 2022 Company recorded non favorable tax items.


2023 Company settled. Internal Revenue audit 2013 2016 favorable impact 3. 0%. offset. 4 billion decrease. foreign tax credits unfavorable 2. 6% reflected tax expense.


fiscal 2023 Company impacts legislative tax elections subsidiaries tax basis deferred tax re-measurements. 3. 4% annual tax rate $0. 3 billion tax benefit local deferred tax assets operations. offset. 1 billion U. S. deferred tax expense GILTI deferred tax liability. reflected. tax international. 3 billion. deferred tax benefit GILTI deferred tax international subsidiary deferred tax refundable tax credit. taxes international income.


2023 2022 tax rates Tax Cuts Jobs Act 2017. lower income jurisdictions. $7. billion charge tax rate 21. 1% Note 19 Consolidated Financial Statements.


2022 tax rate increased. 2% 2021 recorded non-recurring tax items unfavorable. tax rate benefited bermekimab AD IPR&D changes fair value securities portfolio recorded U. S. statutory rate.


2021 Company reorganized international subsidiaries. increased tax basis assets. impact $0. 6 billion 3. 2% annual tax rate $2. 3 billion local deferred tax assets reflected International operations tax. $1. 7 billion U. S. deferred tax expense GILTI tax liability. reflected. taxes international income.


quarter 2021 recognized loss. affiliates intangibles reduced 2021 tax rate. 6%. 2021 impacts acquisition accrued legal expenses $1. 6 billion 23. 5%. 8 billion Risperdal Gynecomastia 16. 4% Note 19 Statements. partial IPR&D charge. 9 billion Ottava intangible Auris Health rate 22. 4%.


differences carryforwards 2023 2022 Employee obligations Stock compensation Depreciation property plant Goodwill(1,737) R&D tax Reserves liabilities,733 Income tax loss,319 Undistributed foreign earnings(1,604) Global intangible low,628) international. deferred income taxes,670,836(7,880)


2023 Company changed income taxes profits inventory expenses Consolidated Balance Sheet.


valuation allowances $1. billion 8 billion 2023 2022. change. 1 billion acquisition remainder operations.


Company subsidiaries net losses. future income deferred tax assets. valuation allowances recorded against deferred tax assets loss carryforwards.


table summarizes unrecognized tax benefits operations Millions$3,716,210,260 current#242 Decreases(781) Settlements(880) Lapse statute limitations(53)(11) End year$2,485,716,210


December 2023 Company $2. 5 billion unrecognized tax benefits. files returns audits. Internal Revenue Service completed 2016.


jurisdictions Company years open tax audits 2008. Company believes tax audits completed twelve months including United States. estimate future tax payments uncertain tax positions.


tax benefits long-term. income tax. recognized $99 million $136 million $42 million 2023 2022 2021. accrued interest $264 million $637 million.


2023 2022 obligations Balance Sheets Pension,129,475 Postretirement Postemployment Deferred compensation obligations#7,135 benefits#593 non-current$7,149#6,542


obligations $4,992 2023 2022 Balance Sheets.


Company sponsors retirement benefit indemnity. post-retirement benefits healthcare. employees dependents.


employees government programs cost not.


. non-union pension benefits before 2015 compensation five years retirement service Final Average Pay. benefits after 2014, different Retirement Value formula.


2021 Company 2026.-union employees earn Retirement Value. amendment affect benefits Final Average Pay 2026.


subsidiaries funds annuities purchased reserves.


Company fund retiree benefits modify plans.


2023 2022 Company used December measurement. retirement benefit plans.


benefit costs retirement 2023 2022 2021 Millions Service cost$893#1,319#1,412#309 Interest cost#908#768#214 return assets,716),756(2,644) Amortization service cost actuarial losses#650#1,251##122#151 Curtailments settlements benefit cost#607#487#533#502


service cost benefit same Consolidated Statement Earnings compensation costs products Research development Selling marketing administrative expenses Net earnings discontinued operations separation Kenvue. other components Other expense exception curtailments settlements Net earnings discontinued operations separation.


Unrecognized gains losses. pension plans amortized future service. life expectancy. amortization. 10% market value postretirement benefit obligation. unamortized gains losses amortized future service.


costs/benefits U. pension plans amortized future service participants amendment. U. benefit plans amortized eligibility age.


table weighted-average actuarial assumptions Benefit Worldwide Plans Periodic Benefit Cost Service cost discount rate. 85. Interest cost discount rate. 25. increase compensation levels. 71. long-term rate return plan assets. Benefit Obligation Discount rate. 58. 49 68 increase compensation levels. 69.


discount rates yield curves long-term fixed income instruments. consistent duration plan liabilities. cost duration rates cash flows.


expected rates asset assumptions assessment-term returns portfolios. projections averages returns asset class allocations market.


table healthcare cost trend rates Healthcare Plans Healthcare cost trend rate next year. 96 decline trend. 99 ultimate trend


table benefit obligation value plan assets 2023 2022 defined benefit retirement Plans Millions Change Benefit Projected benefit obligation$29,390,272,192 Service cost,319 Interest cost Plan contributions Amendments Actuarial,159 Divestitures Curtailments settlements restructuring Benefits exchange rates benefit obligation end year$31,744,390,108,192


Plan$31,496 return(8,663) Company contributions contributions Settlements Divestitures Benefits,122)(1,220) exchange rates(853) end year$33,607,496 Funded status end year$1,863,106,022),114 Non-current assets$4,992 liabilities(3,010)(2,348),606),653) consolidated balance sheet end year$1,863,106,022),114 Net actuarial loss$4,962 service cost(1,236)(1,417) Unrecognized net transition obligation tax$3,726 Accumulated Benefit Obligations end year$30,139losses retirement plans 2023 2022 driven discount rates. Kenvue separation. $800 million annuity contract third-party insurer U. S. Salaried Pension Plan. Benefit Plans Millions Net Periodic Benefit Cost benefit cost actuarial loss Amortization Prior service cost exchange rates loss income tax$1,195,398(868 benefit cost(1,460)


Company U. S. Plans Pension Protection Act 2006. International Plans funded local regulations. contributions obligations. no economic benefit. plans not funded.


contributed $135 $133. pension plans.


table displays funded status Company U. S. Non-Qualified international unfunded December 2023 2022.-Qualified Assets$22,298,937,309 Projected Benefit Obligation,152,394,431 Accumulated Benefit Obligation,557,696,498 Funded Status Projected Benefit Obligation,146 Accumulated Benefit Obligation,741,241


Plans accumulated obligations $5. 8 $6. 1 $3. 1 billion 2023 $2. 7. 3 billion 2022.


table displays future payments retirement benefit plans Millions benefit Retirement plans$1,481,133 benefit plans$427#396,360


table displays projected future contributions unfunded retirement plans. include discretionary contributions. Millions) contributions$122


pension plan overseen by local committee administration investment. local pension tax regulations investment vehicles. funded status ratio actives retirees liabilities diversification base currency. majority pension funds open to new entrants on-going. investments primarily liquid listed little reliance illiquid.


retirement plan 2023 2022 2024 2023 Annual Report Worldwide Retirement Plans Equity securities Debt securities Total assets


Plan fair values. based quoted market prices. models parameters yield curves interest rates volatilities equity prices exchange rates credit curves.


Plan believes valuation methods market participants different methodologies instruments different estimate reporting date.


authoritative literature three-level hierarchy fair value. levels 1 highest 3 lowest.


Net Asset Value assets minus liabilities divided shares outstanding.


financial categorization lowest input fair value measurement.


valuation methodologies for investments fair value.-term investment funds Cash quoted instruments valued at closing price deposit bank. investments valued NAV administrator. quoted price classified Level 2. •Government agency securities limited valued closing price major market. quoted prices active Level 1. not values estimated pricing models discounted cash flows. quoted prices not classified Level 2. instruments limited valued closing price market. Level 1. values estimated pricing models discounted cash flows classified Level 2. Level 3 debt instruments priced unobservable inputs. •Equity securities valued at closing price market. Level 1. •Commingled funds valued NAV administrator. Assets Level 2 quoted market price. assets limited partnerships. valued NAV fund administrator.assets traded Level 1 traded Level 2.


table Retirement Plans investments fair value December 2023 2022 Prices Active Markets Identical Unobservable Net Asset Value Assets Millions) Short investment funds#829 Government agency securities#5,985####5,863 Debt instruments,899,681,681 Equity securities,846,848 Commingled funds,362,682,514 Other assets,295 Investments fair value$7,776,872,602,607,496


activity Level 3 assets years.


Benefit Plans unfunded. $86 $78 million 2023 2022.


Johnson & Johnson Stock $14 million. December 2023 $21 million. 1% 2022.


Company 401(k savings plans retirement programs. matches contributions. contributions $263 million $257 million $239 million 2023 2022 2021.


treasury Millions January 3 2021,331$38,490,399)(2,847) Repurchase common stock,946 January 2 2022,878,099(3,440),375 January 1 2023,246(2,529) Repurchase stock,079 exchange,955 December 31, 2023,765$75,662


stock 3,119,843,000 2022 2021.


dividends $4. 70 2023 $4. 45 2022. 19 2021.


January 2 dividend $1. 19 share March 5 2024 shareholders.


September 14 2022 Company approved repurchase program $5. billion common stock. completed quarter 2023.


income Millions Currency Translation Securities Benefit Plans Derivatives Hedges Income January 3 2021(15,242) 2021,255,184 January 2 2022,702 2022(1,796) January 1 2023,967 2023,221),399) Kenvue Separation/IPO,181 December 31, 2023,149


income net tax impact. currency adjusted investments international subsidiaries. Consolidated Statements Comprehensive Income.


reclassifications Accumulated


Gain Securities reclassifications.


Employee Benefit reclassifications. Note 10.


Gain Derivatives Hedges reclassifications earnings. Note 6.


settlements Kenvue.


subsidiaries non-U. Dollar currencies Company determined local currencies functional except inflationary economies 100% three years cash flows not local currency. majority local currency functional.


consolidating subsidiaries currency effects income. assets Statement Cash flows foreign currency translation. equity account translating balance assets liabilities historical inflationary economies Venezuela. 2022 Company accounted operations Turkey inflationary. translation operating results.


rollforward 2023 foreign currency Note 13.


currency losses losses $366 $286 $216 2022 2021.


reconciliation diluted years 2023 January 1 2 2022 Millions earnings continuing operations. 26. 23. 76 discontinued operations. 17 Total earnings. 88. 83. 93 Average shares. shares stock option plans. shares repurchased treasury stock method. Adjusted shares diluted. Diluted earnings continuing operations. 66 discontinuing operations. 59. 15 Total net earnings diluted. 72. 73.


diluted earnings 2023 excluded 43 million shares stock options market value.


diluted earnings share 2022 2021 shares stock options less average market.


December 31, 2023 Company stock compensation plan. shares outstanding contracts 2012 2022 Plan. 2012 expired April 26, 2022. awards options restricted performance 2022. 150 million shares stock 110 million options appreciation rights 40 million full value awards. counted 1-for-1 against share reserve 40 million full value awards 5-for-1 against reserve. future grants 130 million fiscal 2023.


compensation cost charged $1,087 million $1,028 million $1,038 million 2023 2022 2021. income tax benefit $221 million $177 million $199 million. tax benefits $126 million $267 million $213 million. unrecognized compensation cost $907 million $866 million $775 million. weighted average. 78 years. Share-based compensation costs insignificant.


Company settles employee benefit equity treasury shares. replenished purchases.


options expire 10 6 months 4 years.


Options 2012 Plan average high low prices Common Stock New York Stock Exchange. 2022 Plan closing price Common Stock New Exchange.


value option estimated grant Black-Scholes option valuation model. 2023 2022 2021 grants volatility 10-year 5-week Johnson & Johnson options 2. historical data life. risk-free rate U. S. Treasury yield curve.


average value options $27. $23. $20. 86 2023 2022 2021. estimated assumptions Risk-free rate. 74. Expected volatility. 69. life years. dividend yield. 90.


option activity December 31, 2023 Price Value January 1 2023,672. granted,320. 75 exercised,386. canceled,368. 62 December 2023,238. 88,239


options $729 $1,228 $919 million 2021.


7,689 options cancelled conversion Johnson Johnson Kenvue


table stock options December 31, 2023 Thousands Exercise Price Range Price $90. 44 $101.,774.$99. $115. 67 $129.,368. $131. $151.,391.,676. $162. 70 $162.#13,928 $164. $165.,777.,238.,998$123.


life years.


Stock options January 1 2023 2 2022 118,672. 117,361 5. 8 years. exercisable 63,661 $113. 62,742 $104.


Company grants restricted share units 6 months 3 years. performance share units paid Johnson & Johnson Common Stock three-year performance period. shares goals earnings share return. shares earned performance 0% to 200% target.


December 31, 2023 Restricted Units Performance Units January 1 2023,616,357 Granted Issued,329)(785 Canceled,259) December 31, 2023,938


1,421 shares restricted 264 performance cancelled conversion Johnson & Johnson Kenvue units


average share units $152. 63 $153. 67. 62 2023 2022 2021. discounted dividends. issued $605 million $591 million $611 million 2023 2022 2021.


average performance share units $145. $170. $179. 35 2023 2022 2021 grant.


earnings per share goals estimated market discounted dividends not paid vesting. shareholder return goal estimated Monte Carlo valuation model. issued $140 million $94 million $83 million 2023 2022 2021.


separation Consumer Health business 2023 Company organized Innovative Medicine MedTech. segment results operations. Customers Millions. INNOVATIVE Immunology.$11,539,036,843. International#6,513#5,899#5,907. Worldwide,052#16,935#16,750. REMICADE.,143#1,417#2,019. Exports#147##204##236. International#549#722##935. Worldwide#1,839#2,343##3,190. SIMPONI.,124,166,127. International#1,017#1,148. Worldwide,197#2,184,276. STELARA.,388#5,938. International,892,335#3,196.Worldwide,858,723,134. TREMFYA.,147#1,503. International#824#624. Worldwide,147,668,127. IMMUNOLOGY. International Worldwide. Infectious Diseases.,500#1,680,249#. International,918,769#3,576. Worldwide#4,418,449#5,825. COVID-19 VACCINE.#120#634. International,117#2,059#1,751. Worldwide,117,179,385.


Millions. EDURANT.#36##41. International,115##972##953. Worldwide,150#1,008#994. PREZISTA PREZCOBIX.#1,494#1,508. International#408#449##575. Worldwide#1,854##1,943#2,083. INFECTIOUS.#30##66. International#278##289##297. Worldwide#297##318##363.,065##3,570##3,347.##3,323,641. Worldwide,140##6,893##6,988. CONCERTA.#151#172#52. International#554##493##495. Worldwide##644#667. INVEGA SUSTENNA TRINZA.,714. International#1,472. Worldwide,115,140#4,022.#328#198#79. International#100#46. Worldwide#689#374#224.##376##427. International#1,204##1,358#1,647. Worldwide#1,553#1,734#2,074.,462#6,930#5,958. International#9,199#9,052#8,590. Worldwide,661#15,983,548. (Dollars Millions)#2023#2021.#133# International Worldwide#500#133.,277#4,210,169. International#4,467#3,767#2,854. Worldwide,744#7,977#6,023..#968#813. International,322#913. Worldwide,387#1,881#1,291.#1,390#1,747. International,214#2,394#2,622. Worldwide,264,784,369.#74#119. International#837#1,696#2,178. Worldwide#887#1,770#2,297.#156#110. International#330#283#458. Worldwide#879#438#568. Pulmonary.##2,346#2,365. International,117##1,071#1,085. Worldwide#3,815#3,417#3,450.##1,132#1,147. International#681#651#672. Worldwide#1,973#1,783#1,819..,326#1,104#1,056. International#255#218#181. Worldwide#1,582#1,322#1,237#19.#110#163. International#182##202#232. Worldwide#260##313#395.


Change Millions. Cardiovascular Metabolism.,906#3,042#3,192. International#845#927. Worldwide,671,887#4,119. 5),365,473,438. Worldwide,365,473,438. ##541#569#754. International#845#927. Worldwide,306#1,414#1,682(7. 6). TOTAL INNOVATIVE.,169,604#27,954. International,590#23,959,726. 5) Worldwide#52,563,680. Interventional.,633#2,169#1,836. International,717,131,135. 5. Worldwide,350#4,300#3,971. 7,458. International,230. Worldwide#4,688#3,937,623.##31 International Worldwide,306 INTERVENTIONAL.#102#106. International#247#230##242. Worldwide#356#332#348#7.##5,321,126#3. International#3,417,267#3,462#4. Worldwide#8,942#8,587#8,588#4.#943##878#5. International#564#571#602. Worldwide#1,560##1,514#1,480##3. (Dollars Millions)#2023.##851#787#5. International#559#508#538. Worldwide#1,456##1,359#1,325.. International#989. Worldwide,979#2,885. SPINE SPORTS.#1,645#1,642# International,198#1,256. Worldwide,947#2,843#2,898.,031#,897,867. International#6,006#5,793##5,945. Worldwide#9,690#9,812.#1,784#1,761. International,785#2,861. Worldwide#4,671#4,569##4,622#.,198##2,113#2,105. International,168#3,008#3,085. Worldwide,366,121,190.#1,990#1,857. International,986#2,859#2,831. Worldwide,072#4,849##4,688.#1,522,398. International. Worldwide,702#3,543#3,440. ##460#468#459. International#910#837#788. Worldwide#1,370,306#1,248.,275#13,377,686. International,125,050,374. Worldwide,400#27,427,060.


Customers Change Millions. ’21 S.,444,981,640. International#38,715#38,009,100. Worldwide$85,159#79,990#78,740.


Assets Innovative Medicine$18,246,647,750$58,324,436 MedTech,208,956,915,392 Expense segments Discontinued operations,237 corporate,749 Worldwide$15,062,359,178$167,558,378 Property Plant Amortization Millions Innovative Medicine$1,653,374,198$3,847,687,029 MedTech,372,120,943,286,025,131#6,790#5,989,315 Discontinued operations#303 Worldwide$4,543,652$7,486#6,970,390-Lived Assets Millions United States$46,444,981,750 Europe,410,664,878 Hemisphere.,108 Asia-Pacific Africa,756,237,578,500,159,990,740,439,437 Discontinued operations,237,192 long Worldwide,159,990,740,558,378


Note 1 segments Company.


Export sales significant. 2023 three wholesalers 18. 2% 15. 1% 14. 2% revenues. 2022 three 18. 15. 0% 13. 8%. 2021 three 16. 6% 12. 6%. 6%


allocated include interest. Fiscal 2023 $7 billion charge talc Note 19,. 4 billion change stake Kenvue.


equivalents securities.


Medicine COVID-19 Vaccine. 7 billion restructuring. 5 billion. 4 billion litigation. 1 billion divestiture. 2 billion. intangible asset impairment. billion Momenta Pharmaceuticals.


MedTech. 4 billion Laminar restructuring. 3 billion. 2 billion Abiomed Medical Device Regulation. 3 billion. 1 billion


Medicine COVID-19 Vaccine costs $1. 5 billion intangible asset impairment. 8 billion bermekimab drug Atopic Dermatitis XBiotech. 2020. development bermekimab expense. 1 billion changes fair value securities. 7 billion restructuring charge. 1 billion


MedTech. 6 billion pelvic mesh restructuring. billion. billion Abiomed Medical Device Regulation. billion


Medicine. 6 billion Risperdal Gynecomastia gains. billion. billion securities restructuring. 1 billion


MedTech. billion Ottava restructuring. billion Medical Device. 2 billion


expense. billion


-lived assets property plant equipment $19,898 $17,982 intangible goodwill $70,733 $74,536.


quarter 2024 Company Ambrx Biopharma. clinical-stage biopharmaceutical proprietary synthetic biology antibody all-cash merger equity $2. 0 billion $1. 9 billion cash. shares common stock $28. 00 per share merger. closing first half 2024 shareholder approval clearance Hart-Scott-Rodino Antitrust Improvements Act closing conditions. business combination Innovative Medicine segment acquisition.


fiscal 2023 Company business combination.


fiscal 2023 acquisitions. 5 billion Laminar Inc. 4 billion November 30 2023. Laminar. left atrial appendage-valvular fibrillation.


2022 businesses acquired $17. 7 billion cash $1. 1 billion liabilities. accounted financial statements.


excess purchase price $17. 3 billion assigned residual goodwill.


2022 acquisitions Abiomed. remaining.


December 22, 2022 Company Abiomed cardiovascular technology coronary artery disease heart failure life-saving. transaction broadens cardiovascular care heart failure recovery. business combination MedTech segment. tender offer shares. upfront payment $380. 00 per share cash $17. 1 billion non contingent value right $35. 00 share cash $1. 6 billion commercial clinical milestones achieved. enterprise value $16. 5 billion cash equivalents marketable securities.


milestones consist


. $17. 50 per share payable sales Abiomed $3. 7 billion Johnson 2027 2028 first quarter 2029 $8. 75 per share


. $7. share FDA Impella® ST-elevated January 1 2028


. $10. share Class I Impella® high risk PCI STEMI shock four years December 31, 2029.


2023 purchase allocation. adjustments. 2 billion goodwill. $20. billion. 3 billion goodwill $11. billion amortizable assets. billion IPR $1. billion marketable securities. billion


$3. billion contingent consideration. billion deferred taxes $2. billion. goodwill commercial not deductible. contingent Liabilities adjusted 2023 Consolidated Balance Sheet.


amortizable assets Impella® 14 years.&D valued technology unapproved products. calculated cash discounted risk. success 52% to 70%. discount rate. 5%.


2023 recorded costs tax. 2 billion Other. 2022 costs. 3 billion Other/expense.


year 2021 acquisitions business combination.


. GAAP standards business combinations intangible assets supplemental information years 2023 2022 2021 acquisitions results.


2023 Company executed divestitures $0. 2 billion proceeds. assets intangibles $0. 3 billion Acclarent Ponvory.


2022 Company divestitures.


2021 divested two brands. Innovative Medicine. recognized pre-tax gain. 6 billion.


Johnson Johnson subsidiaries product liability intellectual property indemnification governmental investigations legal proceedings.


Company records loss contingencies liability


incurred loss estimated. December 31, 2023 Company determined liabilities litigation probable estimated. accrued monitor adjust accruals new information ASC 450-20-25 Contingencies. regulatory matters loss probable unable estimate loss beyond amounts accrued. Amounts accrued contingencies result complex judgments estimates assumptions. estimates affected factors damages unsubstantiated indeterminate discovery early legal uncertainties facts dispute procedural jurisdictional issues uncertainty claims settlements complexity cross-claims counterclaims numerous parties. adverse awards judgments verdicts record accrual until loss probable estimated.


Company’s opinion examination experience discussions counsel ultimate outcome legal proceedings net liabilities balance not expected financial position. resolution increase accruals period may results operations cash flows.


injury claims talc cancer Johnson & Johnson Consumer. LTL Management body powders JOHNSON’S Baby Powder.


talc cases Company defense verdicts against reversed appeal. 2020 Missouri Court Appeals July 2018 verdict $4. 7 billion Ingham v. Johnson & Johnson. 207476. award $2. 1 billion. transfer Supreme Court denied June 2021 certiorari denied. June 2021 Company paid award $2. 5 billion. unique Ingham decision not representative claims. grounds contest talc verdicts. safety talc settled cases.


October 2021 Johnson & Johnson Consumer Inc. JJCI corporate restructuring. JJCI ceased three new entities created LTL Management LLC North Carolina Royalty A&M LLC subsidiary LTL Debtor’s parent Johnson & Johnson Consumer Inc. New Jersey. Debtor received Old JJCI’s assets responsible talc-related liabilities injury damage purchase exposure talc risk remedy workers’ compensation statute.


October 2021 talc products Debtor filed petition Western North Carolina Charlotte relief 11 Bankruptcy Code LTL Bankruptcy Case. litigation LTL Old New JJCI Company affiliates retailers insurance companies Protected Parties stayed LTL stay appeals. transferred New Jersey. Claimants dismiss denied March 2022.


claimants filed LTL Bankruptcy extension stay Protected Parties. January 30, 2023 Third Circuit reversed remanded.


LTL filed Third decision denied March 2023. filed stay mandate Jersey Bankruptcy Court dismiss LTL bankruptcy. Third Circuit denied issued mandate.


2023 New Jersey Court dismissed LTL Case lifting stay returning litigation. LTL re-filed LTL 2 Bankruptcy Case. claims LTL stayed 362. issued restraining order litigation LTL Old JJCI New JJCI Company retailers Protected Parties.


April 2023 New Jersey Bankruptcy Court injunctive relief Company New Protected Parties LTL 2 Preliminary Injunction. August 2023 extension June 2023. cancer discovery personal injury wrongful death.


April 2023 Talc Claimants Committee dismiss LTL 2 Bankruptcy. Hearings June. July 28, court dismissed Company appeal. September 2023 Bankruptcy Court LTL appeal Third Circuit. October 2023 Third Circuit granted. Briefing ongoing.


dismissal LTL 2 lawsuits filed cases stayed reactivated. majority cases pending federal court multi-district District Court New Jersey. discovery trial early 2025. discovery pre-trial cases New Jersey California.


original bankruptcy Company funding LTL $2 billion trust. established reserve $2 billion. LTL de-consolidated. LTL 2 Bankruptcy Case additional amount total reserve $9 billion 25 years $12 billion discounted 4. 41%) current future claims. $9 billion reserve settlements one-third current liability. best estimate probable loss dismissal.


parties reached matters Company estimate loss beyond accrued.


class action industrial talc filed Company New Jersey May 2022 Edley Action. Company defended asbestos lawsuits industrial talc 1989 Windsor Minerals. debtor Imerys Bankruptcy. Company removed federal court New Jersey. 2022 filed motions dismiss deny certification. heard November 2023. Company resolved.


February 2019 talc supplier Imerys Talc America. affiliates Vermont. Canada. filed petition relief chapter 11 Code Bankruptcy Court District Delaware Bankruptcy. liability personal injury talcum powder. claims Company indemnification insurance proceeds. proposed chapter 11 plan talc claims trust indemnification rights. trust pay talc claims seek indemnification Company.


February 2021 Cyprus Mines Corporation Imerys talc mines filed petition Bankruptcy Code Disclosure Statement Plan. settlement Imerys talc claimants trust injunction talc claims.


Imerys Plan proceeded solicitation 2021. votes Bankruptcy Court ruled votes. canceled confirmation hearing.


Imerys Tort Committee Future Representative Cyprus Mediation Parties mediation confirmation hearing canceled October 2021. September 2023 Bankruptcy Court mediation December 2023. authorized Imerys Cyprus mediation insurers December 2023.


September 2023 Imerys Cyprus filed plans reorganization. claims channeled trust indemnification rights. January 2024 filed revised TDP. February 2024 filed motions Disclosure Statement.


February 2018 lawsuit filed Company officers District New Jersey violated laws asbestos contamination powders JOHNSON’S Baby Powder purchasers losses. April 2019 complaint.


2019 Court denied dismiss. April 2021 certification. stayed 2022 reopened 2023. December 2023 Court granted certification. January 2024 Defendants Third Circuit appeal. discovery proceeding.