Johnson & Johnson - Index

Johnson & Johnson - report - Index

Reconciliation of Non-GAAP Financial Measures
This table is provided to reconcile certain financial disclosures in the Letter to Shareholders, page 1.
’07 vs. ’06 ’06 vs. ’05
(Dollars in Millions Except Per Share Data) 2007 2006 2005 % Change % Change
Earnings before provision for taxes on income — as reported $13,283 14,587 13,116 (8.9%) 11.2
Purchased in-process research & development (IPR&D) 807 559 362
Restructuring charges 745 — —
NATRECOR® intangible asset write-down 678 — —
Guidant acquisition agreement termination fee — (622) —
Earnings before provision for taxes on income — as adjusted $15,513 14,524 13,478 6.8% 7.8
Net Earnings — as reported $10,576 11,053 10,060 (4.3%) 9.9
Purchased in-process research & development (IPR&D) 807 448 359
Restructuring charges 528 — —
NATRECOR® intangible asset write-down 441 — —
International tax gain on restructuring (267) — —
Guidant acquisition agreement termination fee — (368) —
American Jobs Creation Act of 2004 (AJCA):
Tax gain associated with a technical correction — — (225)
Net Earnings — as adjusted $12,085 11,133 10,194 8.6% 9.2
Diluted net earnings per share — as reported $ 3.63 3.73 3.35 (2.7%) 11.3
Purchased in-process research & development (IPR&D) 0.28 0.15 0.12
Restructuring charges 0.18 — —
NATRECOR® intangible asset write-down 0.15 — —
International tax gain on restructuring (0.09) — —
Guidant acquisition agreement termination fee — (0.12) —
American Jobs Creation Act of 2004:
Tax gain associated with a technical correction — — (0.08)
Diluted net earnings per share — as adjusted $ 4.15 3.76 3.39 10.4% 10.9
The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of
earnings before tax, net earnings and diluted net earnings per share that excludes IPR&D charges and other special items in order to
evaluate ongoing business operations. These non-GAAP financial measures should not be considered replacements for, and should
be read together with, the most comparable GAAP financial measures.
78 REC ONCILIATION OF NON-GAAP FINANCIAL MEASURES