SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS

SALES BY SEGMENT OF BUSINESS



	Fiscal Second Quarters Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change

Consumer
United States	$	1,487	1,384	7.4	%
International	1,991		2,035	(2.2	)
Total	3,478		3,419	1.7
Pharmaceutical
United States	5,010		5,144	(2.6	)
International	3,625		3,510	3.3
Total	8,635		8,654	(0.2	)
Medical Devices
United States	3,229		3,044	6.1
International	3,497		3,365	3.9
Total	6,726		6,409	4.9
Worldwide
United States	9,726		9,572	1.6
International	9,113		8,910	2.3
Total	$	18,839	18,482	1.9	%




	Fiscal Six Months Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change

Consumer
United States	$	2,901	2,742	5.8	%
International	3,805		3,872	(1.7	)
Total	6,706		6,614	1.4
Pharmaceutical
United States	9,882		10,081	(2.0	)
International	6,998		6,751	3.7
Total	16,880		16,832	0.3
Medical Devices
United States	6,321		6,070	4.1
International	6,698		6,448	3.9
Total	13,019		12,518	4.0
Worldwide
United States	19,104		18,893	1.1
International	17,501		17,071	2.5
Total	$	36,605	35,964	1.8	%

INCOME BEFORE TAX BY SEGMENT



	Fiscal Second Quarters Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change
Consumer	$	658	571	15.2	%
Pharmaceutical⁽¹⁾	3,414		3,687	(7.4	)
Medical Devices⁽²⁾	992		939	5.6
Segments operating profit	5,064		5,197	(2.6	)
Less: Expense not allocated to segments⁽³⁾	316		293
Worldwide income before tax	$	4,748	4,904	(3.2	)%




	Fiscal Six Months Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change
Consumer	$	1,254	1,137	10.3	%
Pharmaceutical⁽¹⁾	7,077		7,031	0.7
Medical Devices⁽²⁾	2,555		2,515	1.6
Segments operating profit	10,886		10,683	1.9
Less: Expense not allocated to segments⁽³⁾	563		485
Worldwide income before taxes	$	10,323	10,198	1.2	%

(1) Includes a positive adjustment of $0.3 billion to previous reserve estimates in the fiscal second quarter of 2016. Includes a positive adjustment of $0.5 billion to previous reserve estimates in the fiscal six months of 2016. Includes acquisition costs related to the Actelion acquisition of $0.2 billion in the fiscal second quarter and fiscal six months of 2017. Includes a gain of $0.2 billion related to monetization of future royalty receivables in the fiscal second quarter and fiscal six months of 2017. Includes a gain of $0.2 billion and $0.1 billion in the fiscal six months of 2017 and 2016, respectively, related to the sale of certain investments in equity securities held by Johnson & Johnson Innovation - JJDC, Inc.

(2) Includes a restructuring related charge of $0.1 billion and $0.1 billion in the fiscal second quarters of 2017 and 2016, respectively. Includes a restructuring related charge of $0.3 billion and $0.3 billion in the fiscal six months of 2017 and 2016, respectively. Includes litigation expense of $0.4 billion and $0.6 billion in the fiscal second quarter of 2017 and 2016, respectively. Includes litigation expense of $0.4 billion and $0.7 billion in the fiscal six months of 2017 and 2016, respectively. Includes an asset impairment of $0.2 billion primarily related to the insulin pump business in the fiscal second quarter and fiscal six months of 2017.

(3) Amounts not allocated to segments include interest income/expense and general corporate income/expense.

SALES BY GEOGRAPHIC AREA



	Fiscal Second Quarters Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change
United States	$	9,726	9,572	1.6	%
Europe	4,232		4,090	3.5
Western Hemisphere, excluding U.S.	1,499		1,542	(2.8	)
Asia-Pacific, Africa	3,382		3,278	3.2
Total	$	18,839	18,482	1.9	%




	Fiscal Six Months Ended
(Dollars in Millions)	July 2, 2017		July 3, 2016	Percent Change
United States	$	19,104	18,893	1.1	%
Europe	8,090		7,937	1.9
Western Hemisphere, excluding U.S.	2,953		2,873	2.8
Asia-Pacific, Africa	6,458		6,261	3.1
Total	$	36,605	35,964	1.8	%