Spreadsheet: bdbe0161-6cda-468d-8ad5-1a37aff23c7c
Sheet: 4th Qtr

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) |  |  | FOURTH QUARTER
 |  |  | 2010 |  |  |  | 2009 |  |  |  | Percent
 |  |  |  |  | Percent |  |  |  | Percent |  | Increase
 |  |  | Amount |  | to Sales |  | Amount |  | to Sales |  | (Decrease)
Sales to customers |  |  | 15644 |  | 100 |  | 16551 |  | 100 |  | -5.480031418041206
Cost of products sold |  |  | 5040 |  | 32.21682434160061 |  | 5312 |  | 32.094737478098 |  | -5.120481927710843
Selling, marketing and administrative expenses |  |  | 5180 |  | 33.1117361288673 |  | 5629 |  | 34.0100296054619 |  | -7.976550008882572
Research expense |  |  | 1982 |  | 12.66939401687548 |  | 2213 |  | 13.37079330554045 |  | -10.43831902394939
Interest (income)expense, net |  |  | 114 |  | 0.7287138839171567 |  | 81 |  | 0.4893964110929853
Other (income)expense, net |  |  | 1100 |  | 7.131449757095371 |  | -361 |  | -2.181137091414416
Restructuring expense |  |  | - |  | - |  | 1073 |  | 6.482991964231768
Earnings before provision for taxes on income |  |  | 2228 |  | 14.24188187164408 |  | 2604 |  | 15.73318832698931 |  | -14.43932411674347
Provision for taxes on income |  |  | 286 |  | 1.828176936844797 |  | 398 |  | 2.404688538456891 |  | -28.14070351758794
Net earnings |  |  | 1942 |  | 12.41370493479928 |  | 2206 |  | 13.32849978853242 |  | -11.96736174070716
Net earnings per share  (Diluted) |  |  | 0.7 |  |  |  | 0.79 |  |  |  | -11.39240506329115
Average shares outstanding  (Diluted) |  |  | 2781.6 |  |  |  | 2796.5
Effective tax rate |  |  | 12.83662477558348 | % |  |  | 15.28417818740399 |  | %
Adjusted earnings before provision for taxes and net earnings
Earnings before provision for taxes on income |  |  | 3451 | (1) | 22.05957555612375 |  | 3404 | (2) | 20.56673312790768 |  | 1.380728554641598
Net earnings |  |  | 2864 | (1) | 18.30733827665559 |  | 2846 | (2) | 17.19533562926711 |  | 0.6324666198172875
Net earnings per share  (Diluted) |  |  | 1.03 | (1) |  |  | 1.02 | (2) |  |  | 0.980392156862746
Effective tax rate |  |  | 0.1700956244566792 |  |  |  | 0.163924794359577
(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 expense from net litigation settlements of $374 million, $279 million and $0.10 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 net litigation settlements of $386 million, $212 million and $0.08 per share, respectively.