8-KOther Events

JOHNSON & JOHNSON 8-K Report (Oct 14, 2003)

Filed October 14, 2003For Securities:JNJ

Summary

Johnson & Johnson (JNJ) filed an 8-K report on October 14, 2003, to announce its third-quarter financial results for the period ended September 28, 2003. The report primarily serves to furnish a press release detailing the company's sales and earnings performance. A key aspect of this disclosure is J&J's use of non-GAAP financial measures to provide investors with a clearer view of underlying business trends, excluding the impact of currency fluctuations and in-process research and development (IPR&D) charges. Investors are provided with sales growth figures that exclude currency impacts, which J&J believes offer a more meaningful comparison of performance. Additionally, the company presented earnings metrics (before taxes, net earnings, and EPS) that exclude IPR&D charges, stemming from business combinations, to better reflect ongoing operations. The report also highlights adjustments for a significant legal settlement charge recorded in the prior year's third quarter, further aiming to present a comparable view of operational performance.

Key Highlights

  • 1Announcement of Third Quarter 2003 Sales and Earnings ended September 28, 2003.
  • 2Use of non-GAAP financial measures to provide enhanced insight into underlying business performance.
  • 3Presentation of sales growth excluding currency fluctuations for a more meaningful comparative analysis.
  • 4Disclosure of earnings metrics excluding In-Process Research and Development (IPR&D) charges related to business combinations.
  • 5Adjustment for a significant legal settlement charge in Q3 2002 to facilitate comparison of ongoing business operations.
  • 6Furnished a press release and supplementary sales data/condensed statements as exhibits.

Frequently Asked Questions

The primary purpose of this 8-K filing is to officially announce and provide investors with Johnson & Johnson's consolidated financial results for the third quarter ended September 28, 2003, as detailed in an accompanying press release.

Johnson & Johnson is using non-GAAP financial measures, such as sales growth excluding currency and earnings excluding IPR&D charges, to offer investors a clearer perspective on the underlying performance and trends of its ongoing business operations. They believe these adjusted figures provide a more meaningful comparison by removing the impact of factors outside of management's direct control (currency fluctuations) or that are related to specific transactions (IPR&D charges, legal settlements).

The report indicates that sales growth is presented excluding the impact of currency fluctuations. Earnings metrics (before taxes, net earnings, and EPS) are reported excluding in-process research and development (IPR&D) charges, which are associated with business combinations. Additionally, comparisons of net earnings and EPS growth exclude a charge from a legal settlement that occurred in the third quarter of the prior year (2002).

The detailed financial results are primarily contained within the press release dated October 14, 2003, which is furnished as an exhibit (Exhibit No. 99.15) to this 8-K filing. Further supplementary sales data and condensed consolidated statements of earnings for the third quarter and year-to-date are also provided as Exhibit No. 99.2O.