Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Johnson & Johnson, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
U.S. taxes	2,705)	2,378)	1,525)	1,026)	1,941)
International taxes	3,090)	3,069)	2,452)	1,898)	2,744)
Currently payable	5,795)	5,447)	3,977)	2,924)	4,685)
U.S. taxes	(3,440)	(2,081)	583)	(76)	(814)
International taxes	(619)	418)	(2,662)	(1,065)	(1,662)
Deferred	(4,059)	(1,663)	(2,079)	(1,141)	(2,476)
Provision for taxes on income	1,736)	3,784)	1,898)	1,783)	2,209)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

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Item	Description	The company
Currently payable	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Johnson & Johnson currently payable increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Johnson & Johnson deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Provision for taxes on income	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Johnson & Johnson provision for taxes on income increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Johnson & Johnson, effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
U.S. statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
International operations	-8.10%	-4.50%	-16.40%	-9.90%	-5.90%
U.S. Tax Settlements	-3.00%	0.00%	0.00%	0.00%	0.00%
Consumer health separation	0.00%	2.20%	0.00%	0.00%	0.00%
U.S. taxes on international income	-0.30%	-1.90%	6.70%	2.70%	1.80%
Tax benefits from loss on capital assets	0.00%	0.00%	-1.30%	-1.20%	-0.30%
Tax benefits on share-based compensation	-0.80%	-1.30%	-1.00%	-1.50%	-0.50%
All other	2.70%	1.90%	-0.70%	-0.30%	-3.40%
Effective tax rate	11.50%	17.40%	8.30%	10.80%	12.70%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Johnson & Johnson effective tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Johnson & Johnson, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Employee related obligations	586)	725)	1,244)	2,434)	2,393)
Stock based compensation	686)	687)	679)	627)	546)
Depreciation & amortization	—)	—)	—)	721)	1,122)
R&D capitalized for tax	3,595)	2,611)	1,664)	1,517)	1,189)
Reserves & liabilities	3,816)	2,761)	2,882)	3,466)	2,384)
Income reported for tax purposes	359)	2,045)	2,566)	1,705)	1,605)
Net realizable operating loss carryforward	996)	1,260)	1,073)	990)	838)
Undistributed foreign earnings	1,801)	1,565)	1,015)	812)	765)
Miscellaneous international	831)	1,053)	1,006)	854)	696)
Miscellaneous U.S.	—)	476)	495)	12)	410)
Deferred tax assets	12,670)	13,183)	12,624)	13,138)	11,948)
Depreciation of property, plant and equipment	(902)	(858)	(876)	—)	—)
Goodwill and intangibles	(1,252)	(4,271)	(2,659)	—)	—)
Non-deductible intangibles	—)	—)	—)	(6,567)	(5,752)
Undistributed foreign earnings	(1,695)	(1,693)	(1,461)	(1,435)	(1,289)
Global intangible low-taxed income	(2,731)	(3,547)	(4,853)	(3,606)	(2,965)
Miscellaneous international	—)	(65)	(39)	(211)	(81)
Miscellaneous U.S.	(4)	—)	—)	—)	—)
Deferred tax liabilities	(6,584)	(10,434)	(9,888)	(11,819)	(10,087)
Deferred income taxes	6,086)	2,749)	2,736)	1,319)	1,861)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

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Item	Description	The company
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Johnson & Johnson deferred tax assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred income taxes	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Johnson & Johnson deferred income taxes increased from 2021 to 2022 and from 2022 to 2023.

Johnson & Johnson, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
	Deferred tax assets	9,279)	9,123)	10,223)	8,534)	7,819)
	Deferred tax liabilities	3,193)	6,374)	7,487)	7,214)	5,958)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Johnson & Johnson deferred tax assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Johnson & Johnson deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Johnson & Johnson, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Adjustment to Total Assets
Total assets (as reported)	167,558)	187,378)	182,018)	174,894)	157,728)
Less: Noncurrent deferred tax assets, net	9,279)	9,123)	10,223)	8,534)	7,819)
Total assets (adjusted)	158,279)	178,255)	171,795)	166,360)	149,909)
Adjustment to Total Liabilities
Total liabilities (as reported)	98,784)	110,574)	107,995)	111,616)	98,257)
Less: Noncurrent deferred tax liabilities, net	3,193)	6,374)	7,487)	7,214)	5,958)
Total liabilities (adjusted)	95,591)	104,200)	100,508)	104,402)	92,299)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	68,774)	76,804)	74,023)	63,278)	59,471)
Less: Net deferred tax assets (liabilities)	6,086)	2,749)	2,736)	1,319)	1,861)
Shareholders’ equity (adjusted)	62,688)	74,055)	71,287)	61,959)	57,610)
Adjustment to Net Earnings
Net earnings (as reported)	35,153)	17,941)	20,878)	14,714)	15,119)
Add: Deferred income tax expense (benefit)	(4,059)	(1,663)	(2,079)	(1,141)	(2,476)
Net earnings (adjusted)	31,094)	16,278)	18,799)	13,573)	12,643)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

Johnson & Johnson, Financial Data: Reported vs. Adjusted

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Johnson & Johnson, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Net Profit Margin
Reported net profit margin	41.28%	18.90%	22.26%	17.82%	18.42%
Adjusted net profit margin	36.51%	17.15%	20.05%	16.44%	15.41%
Total Asset Turnover
Reported total asset turnover	0.51	0.51	0.52	0.47	0.52
Adjusted total asset turnover	0.54	0.53	0.55	0.50	0.55
Financial Leverage
Reported financial leverage	2.44	2.44	2.46	2.76	2.65
Adjusted financial leverage	2.52	2.41	2.41	2.69	2.60
Return on Equity (ROE)
Reported ROE	51.11%	23.36%	28.20%	23.25%	25.42%
Adjusted ROE	49.60%	21.98%	26.37%	21.91%	21.95%
Return on Assets (ROA)
Reported ROA	20.98%	9.57%	11.47%	8.41%	9.59%
Adjusted ROA	19.65%	9.13%	10.94%	8.16%	8.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Johnson & Johnson adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Johnson & Johnson adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Johnson & Johnson adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Johnson & Johnson adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Profitability Ratio
Net profit margin¹	41.28%	18.90%	22.26%	17.82%	18.42%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	31,094)	16,278)	18,799)	13,573)	12,643)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Profitability Ratio
Adjusted net profit margin²	36.51%	17.15%	20.05%	16.44%	15.41%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

2023 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 35,153 ÷ 85,159 = 41.28%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 31,094 ÷ 85,159 = 36.51%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Johnson & Johnson adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Total assets	167,558)	187,378)	182,018)	174,894)	157,728)
Activity Ratio
Total asset turnover¹	0.51	0.51	0.52	0.47	0.52
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Adjusted total assets	158,279)	178,255)	171,795)	166,360)	149,909)
Activity Ratio
Adjusted total asset turnover²	0.54	0.53	0.55	0.50	0.55

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

2023 Calculations

¹ Total asset turnover = Sales to customers ÷ Total assets
= 85,159 ÷ 167,558 = 0.51

² Adjusted total asset turnover = Sales to customers ÷ Adjusted total assets
= 85,159 ÷ 158,279 = 0.54

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Johnson & Johnson adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	167,558)	187,378)	182,018)	174,894)	157,728)
Shareholders’ equity	68,774)	76,804)	74,023)	63,278)	59,471)
Solvency Ratio
Financial leverage¹	2.44	2.44	2.46	2.76	2.65
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	158,279)	178,255)	171,795)	166,360)	149,909)
Adjusted shareholders’ equity	62,688)	74,055)	71,287)	61,959)	57,610)
Solvency Ratio
Adjusted financial leverage²	2.52	2.41	2.41	2.69	2.60

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 167,558 ÷ 68,774 = 2.44

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 158,279 ÷ 62,688 = 2.52

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Johnson & Johnson adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Shareholders’ equity	68,774)	76,804)	74,023)	63,278)	59,471)
Profitability Ratio
ROE¹	51.11%	23.36%	28.20%	23.25%	25.42%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	31,094)	16,278)	18,799)	13,573)	12,643)
Adjusted shareholders’ equity	62,688)	74,055)	71,287)	61,959)	57,610)
Profitability Ratio
Adjusted ROE²	49.60%	21.98%	26.37%	21.91%	21.95%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

2023 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 35,153 ÷ 68,774 = 51.11%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity
= 100 × 31,094 ÷ 62,688 = 49.60%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Total assets	167,558)	187,378)	182,018)	174,894)	157,728)
Profitability Ratio
ROA¹	20.98%	9.57%	11.47%	8.41%	9.59%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	31,094)	16,278)	18,799)	13,573)	12,643)
Adjusted total assets	158,279)	178,255)	171,795)	166,360)	149,909)
Profitability Ratio
Adjusted ROA²	19.65%	9.13%	10.94%	8.16%	8.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

2023 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 35,153 ÷ 167,558 = 20.98%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 31,094 ÷ 158,279 = 19.65%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Johnson & Johnson adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Johnson & Johnson (NYSE:JNJ)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Johnson & Johnson, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)