8-KOther Events

JOHNSON & JOHNSON 8-K Report (Jan 30, 2003)

Filed January 30, 2003For Securities:JNJ

Summary

Johnson & Johnson (JNJ) filed an 8-K report on January 30, 2003, primarily to disclose the financial impact of an Amgen arbitration. The company announced that it has accrued arbitration fees and expenses related to the Amgen matter as part of its 2002 financial results. This accrual is reflected in the unaudited consolidated statements of earnings for the fourth quarter and full year ended December 29, 2002, which are filed as an exhibit to this report. Investors should pay attention to the magnitude of these expenses when reviewing J&J's 2002 performance. Additionally, the report notes the resignation of John Snow from the Board of Directors on January 22, 2003, due to his nomination by President Bush to serve as the U.S. Secretary of the Treasury. While this is a significant event for Mr. Snow, its direct financial impact on J&J's operations is likely minimal. The core financial disclosure revolves around the Amgen arbitration expenses.

Key Highlights

  • 1J&J accrued arbitration fees and expenses related to Amgen as part of its 2002 financial results.
  • 2Unaudited consolidated statements of earnings for Q4 and full year ended Dec 29, 2002, reflecting these expenses, are filed as an exhibit.
  • 3John Snow resigned from the Board of Directors on January 22, 2003.
  • 4Mr. Snow's resignation was due to his nomination to serve as U.S. Secretary of the Treasury.
  • 5The filing includes a press release statement regarding the Amgen arbitration fees and expenses.

Frequently Asked Questions

The primary financial impact disclosed is the accrual of arbitration fees and expenses related to a matter with Amgen. These costs have been recorded as part of Johnson & Johnson's 2002 financial results.

Investors can find details in the unaudited consolidated statements of earnings for the fourth quarter and the full year ended December 29, 2002, which are filed as Exhibit 99.2O to this Form 8-K. A press release (Exhibit 99.15) also provides information.

John Snow resigned from the Board of Directors in connection with his nomination by President Bush to serve as the U.S. Secretary of the Treasury.

The Amgen arbitration resulted in accrued fees and expenses that are now included in J&J's 2002 financial performance. Investors should review the updated financial statements to understand the magnitude of these costs on the company's earnings.