6c: Stock Performance Examine how the stock price changed over the time period indicated. Assume that you had purchased 1,000 shares of stock on February 3, 2020 and sold the shares on October 30, 2021. Would you have experienced a gain or loss? Cite where you obtained the stock price data. Citation for stock price Price per share on February 3, 2020 Cost of 1,000 shares on February 3, 2020 Citation for stock price Price per share on October 30, 2021 Cost of 1,000 shares on October 30, 2021 Gain (loss) on sale of stock if all 1,000 shares were sold on October 30, 2021 Section 7: Conclusion Learning Objective: Think about what you have learned. How does the information that you learned affect your decision to continue to hold the stock or to sell it? There is no right or wrong answer here, but your rationale has to match your decision. Section 7: Conclusion If you had purchased 1,000 shares of common stock in this company on February 3, 2020, would you continue to hold the shares, or would you sell them off? Briefly describe why you made this decision. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 3, 2021 or Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission file number 1-3215 JOHNSON & JOHNSON (Exact name of regist specified in is chari) 22-1024240 CURS. Employer identification No.) New Jersey (State of incorporation One Johnson & Johnson Plaza New Brunswick, New Jersey (Address of principal executive office) 08933 (Zip Code) One Johnson & Johnson Plaza New Brunswick, New Jersey 08933 (Address of principal executive offices) Registrant's telephone number, including area code: (732) 524 0400 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT Title of each can Trading Symbol Name of each exchange on which registered Common Stock, Par Value $1.00 JNI New York Stock Exchange 0.250 Notes Due January 2022 JN/22 New York Stock Exchange 0.650W Notes Due May 2024 IN3246 New York Stock Exchange 5.50 Notes Due November 2024 IN24BP New York Stock Exchange 1.150%. Notes Du November 2028 JNI28 New York Stock Exchange 1.650X Notes Due May 2035 JNI35 New York Stock Exchange Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No o Indicate by check mark of the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No la Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports)and (2) has been subject to such filing requirements for the past 90 days. Yes No O Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months for for such shorter period that the registrant was required to submit such files). Yes No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of large accelerated filer," "accelerated file","smaller reporting company," and "emerging growth company in Rule 125-2 of the Exchange Act. Large accelerated filer Accelerated biler Non-accelerated filer Smaller reporting company Emerging growth company DOO DO JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 $ 13,985 11.200 13.576 9,344 3.132 51,237 18.766 3.402 36,393 8.534 6,562 174,894 17.305 1.982 14.481 9,020 2,392 94 45.274 17,658 47.643 33.639 7,819 5,699 157,728 $ Assets Current assets Cash and cash equivalents (Notes 1 and 2) Marketable securities (Notes 1 and 2) Accounts receivable trade, less allowances for doubtful accounts $293 (2019.5226) Inventories (Notes 1 and 3) Prepaid expenses and other receivables Assets held for sale (Note 18) Total current assets Property, plant and equipment, net (Notes 1 and 4) Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) Deferred taxes on income (Note 8) Other assets Total assets Liabilities and Shareholders' Equity Current liabilities Loans and notes payable (Note 7) Accounts payable Accrued liabilities Accrued rebates, returns and promotions Accrued compensation and employee related obligations Accrued taxes on income (Note 8) Total current liabilities Long-term debt (Note 7) Deferred taxes on income (Note 8) Employee related obligations (Notes 9 and 10) Long-term taxes payable (Note 1) Other liabilities Total liabilities Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock without par value (authorized and unissued 2,000,000 shares) Common stock - par value S1.00 per share (Note 12) (authorized 4.320,000,000 shares, issued 3.119.843,000 shares) Accumulated other comprehensive income (loss) (Note 13) Hetained earnings 2.631 9.505 13,968 11.513 3,484 1.392 42,493 32,635 7,214 10,771 6,559 11.944 111,616 1,202 8.544 9,715 10.883 1354 2,266 35.964 26.494 5.958 10,663 7.444 11.734 98,257 Less: common stock held in treasury, al cost (Notc 12) (487,331,000 shares and 487,336,000 shares) Total shareholders' equity Total liabilities and shareholders' equity 3,120 (15.242) 113.890 101,768 38,490 63,278 174,894 3,120 (15.891) 110.639 97.888 38,417 59,471 157,728 See Notes to Consolidated Financial Statements Common Stock Issued Amount 3.120 Treasury Stock Amount (31,554) 3,060 15.868) JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (Dollars in Millions) (Note 1) Accumulated Other Retained Comprehensive Total Earnings Income (Loss) 60,160 101,793 (13.199) (486) (254) (212) 15.297 15,297 (9,494) (9.494) 1,949 (1.111) (5.868) (15) (15) (1.791) (1.791) 59.252 106 216 (15.222) 15.119 15.119 (9,917) (9,917) 1,933 (758) (6,746) (D) (1) (669) 110,659 (15,891) 14,714 14,714 (10,481) (10,481) 2,212 (931) (3.221) (71) (71) 649 649 63,278 113,890 (15.242) Balance, December 31, 2017 Cumulative adjustment Net earnings Cash dividends paid (53 54 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income foss), net of tax Balance, December 30, 2018 Net aming Cash dividends paid (53.75 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income foss), net of tax Balance, December 29, 2019 Nereamings Cash dividends paid (53.98 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income (los), net of tax Balance, January 3, 2021 3,120 2.691 46,716) 59.471 3,120 (8.417) 3.148 (3,221) 3.120 (38.490) See Note I to Consolidated Financial Statements for additional details on the effect of cumulative adjustments to retained earnings See Notes to Consolidated Financial Statements JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Collars i Millies) (Note: 1) 301 101 Cash flows from speruline artisti 5 14714 IS 15. TO VI . 10 7211 100 233 (1,141) (111) (1.141) 0.14) 0.475) (1 217) 01.016) cn 714 12652 5.141 (704) 144 21.536 (2 277) 40V 1,054 1425 23,411 1.15) (644) 5.951 (275) EN 23,101 0,670 3,303 (899) Adjustments to concearingsformering precionado frygtes Stuck has competin Assented Content consider wherever Net alfabesi Deferred Credite account meble wow Onges and liabilities ofeffets fem sind die Increase in reale Incine Increase in s payable and credit Increase there and current Increase Decree other concern abilities Net cash flows from operating activities Cash flows from investing activities Addition to property, plant and equipment Proceeds from the disposal of business, Acquisitions of cash acquired (1) Purchase Salex afin Gapport sportcity Other (primarily Scenes and me Nel cash wed by investigates Cash for financiag activities Didende so wharchas Hapucha af cock Proces showtem dehi Kepayant of short-term che Proceeds from long-term de anco Repayment of long-term dhe Prexceeds from the recitesteck optimployee withholding on Mackwards, net Cet apport agreements divity, Other Nefcathed by facing activities Fiffect of endurerate changes on cash and cash equivalent (Decrease increase in cash and cash equiva Cash and can even beginning of year (el) Cash and chequivalents, end of year (Nate) 0.347) 305 (7.32) 21.08 12.117 1987) (521) (20.825) 03.09) 3.65 10 13.920 3.167 330 4 46,190 4.2 (464) (9,917) (104111 13.221) 3.391 12.663) 7,431 11.064 1.114 (333) (294) 16.120) 99 3,320) 17.105 12 (100) 1 (2.23 954 100 45 (18.015) 19.494) 15.063) NO 12.4793 5 (1.3333 919 25 (173) (1310 (241) 283 17.824 18.107 9) (021 1810 17.305 Supplemental cash few data Cash paid during the year for Interest Limeres e of capital Increase 901 541 4619 995 925 4191 119 963 4570 Sepplemental schedule of new cash investing and financing activities Trock employee compensation and stock option planet of cash peace playee withholding to lock was Crveis of 5 1.937 21 1 Angelland File of an acquired Fur value of the same und controlling 34756 HO 7.823 (141 510 LOET (145) 99 JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1) 2020 Sales to customers 82.584 Cost of products sold 28,427 Gross profit 54,157 Selling, marketing and administrative expenses 22,084 Research and development expense 12,159 In process research and development (Note 5) 181 Interest income Interest expense, net of portion capitalized (Note 4) 201 Other (income) expense, net 2,899 Restructuring (Note 20) 247 Earnings before provision for taxes on income 16,497 Provision for taxes on income (Note 8) 1.783 Net earnings 14,714 2019 82,039 27.556 54,503 22,178 11,355 890 (157) MIX 2,525 266 17,328 2,209 15.119 2018 81,581 27.091 54.490 22.540 10,775 1,120 (611) 1.005 1.405 251 17.999 2.702 15,297 5.59 5.51 5.72 5.63 5.70 5.61 Net earning per share (Notes 1 and 15) Basic Diluted Average shares outstanding (Notes 1 and 15) Basic Diluted 2,632.8 2,670.7 2.645.1 2.6143 2,681.3 2,728.7 Sre Notes to Consolidated Financial Statements 6c: Stock Performance Examine how the stock price changed over the time period indicated. Assume that you had purchased 1,000 shares of stock on February 3, 2020 and sold the shares on October 30, 2021. Would you have experienced a gain or loss? Cite where you obtained the stock price data. Citation for stock price Price per share on February 3, 2020 Cost of 1,000 shares on February 3, 2020 Citation for stock price Price per share on October 30, 2021 Cost of 1,000 shares on October 30, 2021 Gain (loss) on sale of stock if all 1,000 shares were sold on October 30, 2021 Section 7: Conclusion Learning Objective: Think about what you have learned. How does the information that you learned affect your decision to continue to hold the stock or to sell it? There is no right or wrong answer here, but your rationale has to match your decision. Section 7: Conclusion If you had purchased 1,000 shares of common stock in this company on February 3, 2020, would you continue to hold the shares, or would you sell them off? Briefly describe why you made this decision. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 3, 2021 or Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission file number 1-3215 JOHNSON & JOHNSON (Exact name of regist specified in is chari) 22-1024240 CURS. Employer identification No.) New Jersey (State of incorporation One Johnson & Johnson Plaza New Brunswick, New Jersey (Address of principal executive office) 08933 (Zip Code) One Johnson & Johnson Plaza New Brunswick, New Jersey 08933 (Address of principal executive offices) Registrant's telephone number, including area code: (732) 524 0400 SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT Title of each can Trading Symbol Name of each exchange on which registered Common Stock, Par Value $1.00 JNI New York Stock Exchange 0.250 Notes Due January 2022 JN/22 New York Stock Exchange 0.650W Notes Due May 2024 IN3246 New York Stock Exchange 5.50 Notes Due November 2024 IN24BP New York Stock Exchange 1.150%. Notes Du November 2028 JNI28 New York Stock Exchange 1.650X Notes Due May 2035 JNI35 New York Stock Exchange Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No o Indicate by check mark of the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No la Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports)and (2) has been subject to such filing requirements for the past 90 days. Yes No O Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months for for such shorter period that the registrant was required to submit such files). Yes No o Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of large accelerated filer," "accelerated file","smaller reporting company," and "emerging growth company in Rule 125-2 of the Exchange Act. Large accelerated filer Accelerated biler Non-accelerated filer Smaller reporting company Emerging growth company DOO DO JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 $ 13,985 11.200 13.576 9,344 3.132 51,237 18.766 3.402 36,393 8.534 6,562 174,894 17.305 1.982 14.481 9,020 2,392 94 45.274 17,658 47.643 33.639 7,819 5,699 157,728 $ Assets Current assets Cash and cash equivalents (Notes 1 and 2) Marketable securities (Notes 1 and 2) Accounts receivable trade, less allowances for doubtful accounts $293 (2019.5226) Inventories (Notes 1 and 3) Prepaid expenses and other receivables Assets held for sale (Note 18) Total current assets Property, plant and equipment, net (Notes 1 and 4) Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) Deferred taxes on income (Note 8) Other assets Total assets Liabilities and Shareholders' Equity Current liabilities Loans and notes payable (Note 7) Accounts payable Accrued liabilities Accrued rebates, returns and promotions Accrued compensation and employee related obligations Accrued taxes on income (Note 8) Total current liabilities Long-term debt (Note 7) Deferred taxes on income (Note 8) Employee related obligations (Notes 9 and 10) Long-term taxes payable (Note 1) Other liabilities Total liabilities Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock without par value (authorized and unissued 2,000,000 shares) Common stock - par value S1.00 per share (Note 12) (authorized 4.320,000,000 shares, issued 3.119.843,000 shares) Accumulated other comprehensive income (loss) (Note 13) Hetained earnings 2.631 9.505 13,968 11.513 3,484 1.392 42,493 32,635 7,214 10,771 6,559 11.944 111,616 1,202 8.544 9,715 10.883 1354 2,266 35.964 26.494 5.958 10,663 7.444 11.734 98,257 Less: common stock held in treasury, al cost (Notc 12) (487,331,000 shares and 487,336,000 shares) Total shareholders' equity Total liabilities and shareholders' equity 3,120 (15.242) 113.890 101,768 38,490 63,278 174,894 3,120 (15.891) 110.639 97.888 38,417 59,471 157,728 See Notes to Consolidated Financial Statements Common Stock Issued Amount 3.120 Treasury Stock Amount (31,554) 3,060 15.868) JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (Dollars in Millions) (Note 1) Accumulated Other Retained Comprehensive Total Earnings Income (Loss) 60,160 101,793 (13.199) (486) (254) (212) 15.297 15,297 (9,494) (9.494) 1,949 (1.111) (5.868) (15) (15) (1.791) (1.791) 59.252 106 216 (15.222) 15.119 15.119 (9,917) (9,917) 1,933 (758) (6,746) (D) (1) (669) 110,659 (15,891) 14,714 14,714 (10,481) (10,481) 2,212 (931) (3.221) (71) (71) 649 649 63,278 113,890 (15.242) Balance, December 31, 2017 Cumulative adjustment Net earnings Cash dividends paid (53 54 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income foss), net of tax Balance, December 30, 2018 Net aming Cash dividends paid (53.75 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income foss), net of tax Balance, December 29, 2019 Nereamings Cash dividends paid (53.98 per share) Employee compensation and stock option plans Repurchase of common stock Other Other comprehensive income (los), net of tax Balance, January 3, 2021 3,120 2.691 46,716) 59.471 3,120 (8.417) 3.148 (3,221) 3.120 (38.490) See Note I to Consolidated Financial Statements for additional details on the effect of cumulative adjustments to retained earnings See Notes to Consolidated Financial Statements JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Collars i Millies) (Note: 1) 301 101 Cash flows from speruline artisti 5 14714 IS 15. TO VI . 10 7211 100 233 (1,141) (111) (1.141) 0.14) 0.475) (1 217) 01.016) cn 714 12652 5.141 (704) 144 21.536 (2 277) 40V 1,054 1425 23,411 1.15) (644) 5.951 (275) EN 23,101 0,670 3,303 (899) Adjustments to concearingsformering precionado frygtes Stuck has competin Assented Content consider wherever Net alfabesi Deferred Credite account meble wow Onges and liabilities ofeffets fem sind die Increase in reale Incine Increase in s payable and credit Increase there and current Increase Decree other concern abilities Net cash flows from operating activities Cash flows from investing activities Addition to property, plant and equipment Proceeds from the disposal of business, Acquisitions of cash acquired (1) Purchase Salex afin Gapport sportcity Other (primarily Scenes and me Nel cash wed by investigates Cash for financiag activities Didende so wharchas Hapucha af cock Proces showtem dehi Kepayant of short-term che Proceeds from long-term de anco Repayment of long-term dhe Prexceeds from the recitesteck optimployee withholding on Mackwards, net Cet apport agreements divity, Other Nefcathed by facing activities Fiffect of endurerate changes on cash and cash equivalent (Decrease increase in cash and cash equiva Cash and can even beginning of year (el) Cash and chequivalents, end of year (Nate) 0.347) 305 (7.32) 21.08 12.117 1987) (521) (20.825) 03.09) 3.65 10 13.920 3.167 330 4 46,190 4.2 (464) (9,917) (104111 13.221) 3.391 12.663) 7,431 11.064 1.114 (333) (294) 16.120) 99 3,320) 17.105 12 (100) 1 (2.23 954 100 45 (18.015) 19.494) 15.063) NO 12.4793 5 (1.3333 919 25 (173) (1310 (241) 283 17.824 18.107 9) (021 1810 17.305 Supplemental cash few data Cash paid during the year for Interest Limeres e of capital Increase 901 541 4619 995 925 4191 119 963 4570 Sepplemental schedule of new cash investing and financing activities Trock employee compensation and stock option planet of cash peace playee withholding to lock was Crveis of 5 1.937 21 1 Angelland File of an acquired Fur value of the same und controlling 34756 HO 7.823 (141 510 LOET (145) 99 JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1) 2020 Sales to customers 82.584 Cost of products sold 28,427 Gross profit 54,157 Selling, marketing and administrative expenses 22,084 Research and development expense 12,159 In process research and development (Note 5) 181 Interest income Interest expense, net of portion capitalized (Note 4) 201 Other (income) expense, net 2,899 Restructuring (Note 20) 247 Earnings before provision for taxes on income 16,497 Provision for taxes on income (Note 8) 1.783 Net earnings 14,714 2019 82,039 27.556 54,503 22,178 11,355 890 (157) MIX 2,525 266 17,328 2,209 15.119 2018 81,581 27.091 54.490 22.540 10,775 1,120 (611) 1.005 1.405 251 17.999 2.702 15,297 5.59 5.51 5.72 5.63 5.70 5.61 Net earning per share (Notes 1 and 15) Basic Diluted Average shares outstanding (Notes 1 and 15) Basic Diluted 2,632.8 2,670.7 2.645.1 2.6143 2,681.3 2,728.7 Sre Notes to Consolidated Financial Statements