Spreadsheet: bdbe0161-6cda-468d-8ad5-1a37aff23c7c
Sheet: 12 Mos

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) |  |  | TWELVE MONTHS
 |  |  | 2010 |  |  |  | 2009 |  |  |  | Percent
 |  |  |  |  | Percent |  |  |  | Percent |  | Increase
 |  |  | Amount |  | to Sales |  | Amount |  | to Sales |  | (Decrease)
Sales to customers |  |  | 61587 |  | 100 |  | 61897 |  | 100 |  | -0.5008320274003586
Cost of products sold |  |  | 18792 |  | 30.51293292415607 |  | 18447 |  | 29.80273680469167 |  | 1.870222800455358
Selling, marketing and administrative expenses |  |  | 19424 |  | 31.53912351632649 |  | 19801 |  | 31.99024185340162 |  | -1.903944245240139
Research expense |  |  | 6844 |  | 11.11273483040252 |  | 6986 |  | 11.28649207554486 |  | -2.032636701975379
Interest (income)expense, net |  |  | 348 |  | 0.5650543134102977 |  | 361 |  | 0.5832269738436434
Other (income)expense, net |  |  | -768 |  | -1.247016415802036 |  | -526 |  | -0.8497988593954472
Restructuring expense |  |  | - |  | - |  | 1073 |  | 1.733525049679306
Earnings before provision for taxes on income |  |  | 16947 |  | 27.51717083150665 |  | 15755 |  | 25.35357610223436 |  | 7.56585211044113
Provision for taxes on income |  |  | 3613 |  | 5.76649779986036 |  | 3489 |  | 5.636783689031779 |  | 3.554026941817139
Net earnings |  |  | 13334 |  | 21.65067303164629 |  | 12266 |  | 19.81679241320258 |  | 8.706994945377467
Net earnings per share  (Diluted) |  |  | 4.78 |  |  |  | 4.4 |  |  |  | 8.636363636363633
Average shares outstanding  (Diluted) |  |  | 2788.8 |  |  |  | 2789.1
Effective tax rate |  |  | 21.31940756476073 | % |  |  | 22.14535068232307 |  | %
Adjusted earnings before provision for taxes and net earnings
Earnings before provision for taxes on income |  |  | 16830 | (1) | 27.32719567441181 |  | 16555 | (2) | 26.74604585036431 |  | 1.661129568106313
Net earnings |  |  | 13279 | (1) | 21.5613684706188 |  | 12906 | (2) | 20.85076821170654 |  | 2.890128622346196
Net earnings per share  (Diluted) |  |  | 4.76 | (1) |  |  | 4.63 | (2) |  |  | 2.80777537796976
Effective tax rate |  |  | 0.210992275698158 |  |  |  | 0.2204167925098158
(1)    The difference between as reported earnings and as adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of income from net litigation settlements of $966 million, $698 million and $0.25 per share, respectively, the exclusion of product liability expense of $569 million, $404 million and $0.14 per share, respectively, and the exclusion of expense for the cost associated with the DePuy ASR® Hip recall program of $280 million, $239 million and $0.09 per share, respectively.
(2) The difference between as reported earnings and as adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of restructuring expense of $1,186 million ($1,073 million restructuring expense and $113 million related to restructuring included in cost of products sold), $852 million and $0.31 per share, respectively, and the exclusion of income from fourth quarter net litigation settlements of $386 million, $212 million and $0.08 per share, respectively.