Consolidated Statements of Earnings Johnson & Johnson and Subsidiaries (Dollars in Millions Except Per Share Figures) (Note 1) 2010 2009 2008 Sales to customers $61,587 61,897 63,747 Cost of products sold 18,792 18,447 18,511 Gross profit 42,795 43,450 45,236 Selling, marketing and administrative expenses 19,424 19,801 21,490 Research and development expense 6,844 6,986 7,577 Purchased in-process research and development (Note 20) — — 181 Interest income (107) (90) (361) Interest expense, net of portion capitalized (Note 4) 455 451 435 Other (income) expense, net (768) (526) (1,015) Restructuring (Note 22) — 1,073 — Earnings before provision for taxes on income 16,947 15,755 16,929 Provision for taxes on income (Note 8) 3,613 3,489 3,980 Net earnings $13,334 12,266 12,949 Basic net earnings pershare (Notes 1 and 15) $ 4.85 4.45 4.62 Diluted net earnings per share (Notes 1 and 15) $ 4.78 4.40 4.57 Cash dividends per share $ 2.110 1.930 1.795 Basic average shares outstanding (Notes 1 and 15) 2,751.4 2,759.5 2,802.5 Diluted average shares outstanding (Notes 1 and 15) 2,788.8 2,789.1 2,835.6 JOHNSON & JOHNSON 2010 ANNUAL REPORT 42 See Notes to Consolidated Financial Statements