Tuesday, January 29, 2013

Johnson & Johnson 4Q 2012 Non-GAAP Adjusted Net Income up 8% and Annual 2012 Earnings up 3%

Below here are reconciliations of Johnson & Johnson's Net Income as Reported and its Non-GAAP Adjusted Net Income for both the 4Qs of 2012 and 2011 and for annual 2012 and 2011:



4Q 4Q %
Annual Annual %

2012 2011 Increase
2012 2011 Increase

mil $s mil $s
mil $s mil $s








Net Income, as Reported 2,567 218 1078%
10,853 9,672 12%








Adjustments:














Litigation Loss 371 2,239

1,052 2,745








In Process R&D Charges 59 11

743 11







Synthes Integration/transaction and Currency-related Costs 306 338

899 477








Intangible Asset Write-downs and Other Adjustments

701









DePuy Hip Program Charges 73 336

97 426








Restructuring
(13)


536








Non-GAAP Adjusted Net Income 3,376 3,129 8%
14,345 13,867 3%

From the most recent 2011 Proxy Statement filed with the SEC, below here is the executive compensation information for William Weldon, the Chairman and CEO of Johnson & Johnson for each of the years 2009 through 2011:






Non-equity Increase





Incentive In All


Stock Option Plan Pension Other Total
Year Salary Awards Awards Compensation Value Compensation Compensation

000s 000s 000s 000s 000s 000s 000s
2011 1,907 2,609 4,189 14,336 3,435 321 26,797
2010 1,851 2,774 4,713 12,043 7,085 254 28,720
2009 1,803 2,763 5,238 12,831 7,983 197 30,815
3 Yr Total 5,561 8,146 14,140 39,210 18,503 772 86,332

When you review the above compensation numbers, yeah that's $86.3 mil of Total Compensation for Johnson & Johnson's CEO  for the three years from 2009 and 2011, do you think that the US has a problem with economic fairness between the very wealthy and everyone else?

And from JNJ's most recent income tax footnote, it received total foreign tax breaks from its international and Puerto Rican operations for the three years from 2009 to 2011 of $5,947 mil, yeah that's more than $5.9 bil.

It's easy to see why the country's largest companies like JNJ want the US Debt to be reduced solely by cost cuts rather than by a combination of both costs cuts and additional US Tax Revenues.

And the Business Roundtable, which speaks for the largest US Corps, is now lobbying very heavily to delay first eligibility for both Social Security and Medicare Benefits to Age 70.  Give me a break!