10-KPeriod: FY2008

JOHNSON & JOHNSON Annual Report, Year Ended Dec 28, 2008

Filed February 20, 2009For Securities:JNJ

Summary

This 10-K filing for Johnson & Johnson for the fiscal year ended December 28, 2008, reflects the company's position as a large, diversified healthcare giant operating in a challenging economic environment. As a well-established issuer, JNJ maintained its standard reporting practices, detailing its business segments, risk factors, and financial performance. Investors should note the company's significant market capitalization and its ongoing commitment to research and development, crucial for maintaining its competitive edge in the pharmaceutical, medical devices, and consumer health sectors. The filing, while comprehensive, incorporates much of the detailed information through references to its Annual Report to Shareholders and Proxy Statement. This approach is typical for large companies and allows for a streamlined 10-K. Investors seeking a deeper understanding of the operational and financial intricacies should refer to these incorporated documents, particularly for detailed financial statements, management's discussion and analysis, and executive compensation.

Financial Highlights

52 data points
Beta

Revenue

$63.75B

71.0% Gross Margin

Net Income

$12.95B

20.3% Net Margin

EPS (Diluted)

$4.57

Total Assets

$84.91B

Cash & Equivalents

$10.77B

Free Cash Flow

$11.91B

Financial Statements
Beta
Revenue$63.75B
Cost of Revenue$18.51B
Gross Profit$45.24B
SG&A Expenses$21.49B
Interest Expense$435.00M
Net Income$12.95B
EPS (Basic)$4.62
EPS (Diluted)$4.57
Shares Outstanding (Basic)2.80B
Shares Outstanding (Diluted)2.84B

Key Highlights

  • 1Johnson & Johnson is a large accelerated filer, indicating a significant market capitalization (approximately $178 billion as of the last business day of the second fiscal quarter of 2008) and robust financial reporting history.
  • 2The company operates across diversified business segments: Pharmaceuticals, Medical Devices and Diagnostics, and Consumer Health Care.
  • 3The 10-K references extensive incorporated documents, including the Annual Report to Shareholders and Proxy Statement, which contain detailed financial statements and management's discussion.
  • 4JNJ has a history of robust patent and trademark protection, essential for its product pipeline and market exclusivity.
  • 5The company's business is subject to extensive regulation across all its operating segments, a key factor influencing its operations and strategic decisions.
  • 6Research and Development (R&D) is highlighted as a critical function, signaling ongoing investment in innovation to maintain market leadership.
  • 7The filing includes detailed information on various equity-based compensation plans for directors and executive officers, as well as severance arrangements.

Frequently Asked Questions

Johnson & Johnson operates through three main segments: Pharmaceuticals, Medical Devices and Diagnostics, and Consumer Health Care. These segments cater to a wide range of healthcare needs, from prescription drugs and surgical equipment to over-the-counter health products.

While the 10-K filing doesn't provide explicit commentary on the 2008 economic downturn within the provided excerpt, as a diversified healthcare company, J&J is generally considered more resilient to economic cycles than many other industries. However, consumer discretionary spending on certain products and elective medical procedures could be affected, alongside potential impacts on R&D funding or access to capital.

The 10-K filing incorporates much of the detailed financial statements and Management's Discussion and Analysis (MD&A) by reference to the Company's Annual Report to Shareholders for fiscal year 2008 and its Proxy Statement for the 2009 annual meeting. Investors should consult these documents for a comprehensive understanding of the company's financial condition and results of operations.

The provided excerpt lists 'Risk Factors' as Item 1A. While specific risks are not detailed here, typical risks for a company of J&J's scale and industry include product liability, regulatory changes, patent expirations, competitive pressures, and the success of research and development efforts. Investors should refer to the full 10-K filing for a complete list and discussion of these risks.