JOHNSON & JOHNSON [JNJ] Filings

10-Q 1 jnj-20240630.htm 10-Q jnj-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



☑						Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended June 30, 2024



☐						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 registrant as specified in its charter)


New Jersey						22-1024240
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One Johnson & Johnson Plaza

New Brunswick, New Jersey 08933

(Address of principal executive offices)

Registrant’s telephone number, including area code (732) 524-0400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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

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 (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, Par Value $1.00	JNJ	New York Stock Exchange
5.50% Notes Due November 2024	JNJ24BP	New York Stock Exchange
1.150% Notes Due November 2028	JNJ28	New York Stock Exchange
3.20% Notes Due November 2032	JNJ32	New York Stock Exchange
1.650% Notes Due May 2035	JNJ35	New York Stock Exchange
3.350% Notes Due November 2036	JNJ36A	New York Stock Exchange
3.550% Notes Due November 2044	JNJ44	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

On July 19, 2024, 2,407,243,667 shares of Common Stock, $1.00 par value, were outstanding.

JOHNSON & JOHNSON AND SUBSIDIARIES

Table of contents


Item		Page

Part I
	Financial information	1
Item 1	Financial statements (unaudited)	1
	Consolidated balance sheets — June 3 0 , 2024 and December 31, 2023	1
	Consolidated statements of earnings for the fiscal second quarters ended June 3 0 , 2024 and July 2 , 2023	2
	Consolidated s tatements of e arnings for the f iscal six m onths e nded June 30 , 202 4 and July 2, 202 3	3

	Consolidated statements of comprehensive income for the fiscal second quarters and fiscal six mon ths ended June 3 0 , 2024 and July 2, 2023	4
	Consolidated statements of equity for the fiscal second quarters and fiscal six months ended June 3 0 , 2024 and July 2, 2023	5
	Consolidated statements of cash flows for the fiscal six months ended June 3 0 , 2024 and July 2, 2023	7
	Notes to consolidated financial statements	9


Item 2	Management’s discussion and analysis of financial condition and results of operations	42
Item 3	Quantitative and qualitative disclosures about market risk	60
Item 4	Controls and procedures	60

Part II
	Other information	61
Item 1	Legal proceedings	61
Item 2	Unregistered sales of equity securities and use of proceeds	61
Item 5	Other information	62
Item 6	Exhibits	62
	Signatures	63

Cautionary note regarding forward-looking statements

This Quarterly Report on Form 10-Q and Johnson & Johnson’s other publicly available documents contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Management and representatives of Johnson & Johnson and its subsidiaries (the Company) also may from time to time make forward-looking statements. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and other words of similar meaning in conjunction with, among other things: discussions of future operations, expected operating results, financial performance; impact of planned acquisitions and dispositions; impact and timing of restructuring initiatives including associated cost savings and other benefits; the Company’s strategy for growth; product development activities; regulatory approvals; market position and expenditures.

Because forward-looking statements are based on current beliefs, expectations and assumptions regarding future events, they are subject to uncertainties, risks and changes that are difficult to predict and many of which are outside of the Company’s control. Investors should realize that if underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, the Company’s actual results and financial condition could vary materially from expectations and projections expressed or implied in its forward-looking statements. Investors are therefore cautioned not to rely on these forward-looking statements. Risks and uncertainties include, but are not limited to:

Risks related to product development, market success and competition

•Challenges and uncertainties inherent in innovation and development of new and improved products and technologies on which the Company’s continued growth and success depend, including uncertainty of clinical outcomes, additional analysis of existing clinical data, obtaining regulatory approvals, health plan coverage and customer access, and initial and continued commercial success;

•Challenges to the Company’s ability to obtain and protect adequate patent and other intellectual property rights for new and existing products and technologies in the United States and other important markets;

•The impact of patent expirations, typically followed by the introduction of competing generic, biosimilar or other products and resulting revenue and market share losses;

•Increasingly aggressive and frequent challenges to the Company’s patents by competitors and others seeking to launch competing generic, biosimilar or other products and increased receptivity of courts, the United States Patent and Trademark Office and other decision makers to such challenges, potentially resulting in loss of market exclusivity and rapid decline in sales for the relevant product sooner than expected;

•Competition in research and development of new and improved products, processes and technologies, which can result in product and process obsolescence;

•Competition to reach agreement with third parties for collaboration, licensing, development and marketing agreements for products and technologies;

•Competition based on cost-effectiveness, product performance, technological advances and patents attained by competitors; and

•Allegations that the Company’s products infringe the patents and other intellectual property rights of third parties, which could adversely affect the Company’s ability to sell the products in question and require the payment of money damages and future royalties.

Risks related to product liability, litigation and regulatory activity

•Product efficacy or safety concerns, whether or not based on scientific evidence, potentially resulting in product withdrawals, recalls, regulatory action on the part of the United States Food and Drug Administration (U.S. FDA) (or international counterparts), declining sales, reputational damage, increased litigation expense and share price impact;

•The impact, including declining sales and reputational damage, of significant litigation or government action adverse to the Company, including product liability claims and allegations related to pharmaceutical marketing practices and contracting strategies;

•The impact of an adverse judgment or settlement and the adequacy of reserves related to legal proceedings, including patent litigation, product liability, personal injury claims, securities class actions, government investigations, employment and other legal proceedings;

•Increased scrutiny of the healthcare industry by government agencies and state attorneys general resulting in investigations and prosecutions, which carry the risk of significant civil and criminal penalties, including, but not limited to, debarment from government business;

•Failure to meet compliance obligations in compliance agreements with governments or government agencies, which could result in significant sanctions;

•Potential changes to applicable laws and regulations affecting United States and international operations, including relating to: approval of new products; licensing and patent rights; sales and promotion of healthcare products; access to, and reimbursement and pricing for, healthcare products and services; environmental protection; and sourcing of raw materials;

•Compliance with local regulations and laws that may restrict the Company’s ability to manufacture or sell its products in relevant markets, including requirements to comply with medical device reporting regulations and other requirements such as the European Union’s Medical Devices Regulation;

•Changes in domestic and international tax laws and regulations, increasing audit scrutiny by tax authorities around the world and exposures to additional tax liabilities potentially in excess of existing reserves; and

•The issuance of new or revised accounting standards by the Financial Accounting Standards Board and regulations by the Securities and Exchange Commission.

Risks related to healthcare market trends and the realization of benefits from the Company's strategic initiatives

•Pricing pressures resulting from trends toward healthcare cost containment, including the continued consolidation among healthcare providers and other market participants, trends toward managed care, the shift toward governments increasingly becoming the primary payors of healthcare expenses, significant new entrants to the healthcare markets seeking to reduce costs and government pressure on companies to voluntarily reduce costs and price increases;

•Restricted spending patterns of individual, institutional and governmental purchasers of healthcare products and services due to economic hardship and budgetary constraints;

•Challenges to the Company’s ability to realize its strategy for growth including through externally sourced innovations, such as development collaborations, strategic acquisitions, licensing and marketing agreements, and the potential heightened costs of any such external arrangements due to competitive pressures;

•The potential that the expected strategic benefits and opportunities from any planned or completed acquisition or divestiture by the Company may not be realized or may take longer to realize than expected;

•The potential that the expected benefits and opportunities related to past and ongoing restructuring actions may not be realized or may take longer to realize than expected;

•The Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc.

Risks related to economic conditions, financial markets and operating internationally

•The risks associated with global operations on the Company and its customers and suppliers, including foreign governments in countries in which the Company operates;

•The impact of inflation and fluctuations in interest rates and currency exchange rates and the potential effect of such fluctuations on revenues, expenses and resulting margins;

•Potential changes in export/import and trade laws, regulations and policies of the United States and other countries, including any increased trade restrictions or tariffs and potential drug reimportation legislation;

•The impact on international operations from financial instability in international economies, sovereign risk, possible imposition of governmental controls and restrictive economic policies, and unstable international governments and legal systems;

•The impact of global public health crises and pandemics;

•Changes to global climate, extreme weather and natural disasters that could affect demand for the Company’s products and services, cause disruptions in manufacturing and distribution networks, alter the availability of goods and services within the supply chain, and affect the overall design and integrity of the Company’s products and operations;

•The impact of global or economic changes or events, including global tensions and war; and

•The impact of armed conflicts and terrorist attacks in the United States and other parts of the world, including social and economic disruptions and instability of financial and other markets.

Risks related to supply chain and operations

•Difficulties and delays in manufacturing, internally, through third-party providers or otherwise within the supply chain, that may lead to voluntary or involuntary business interruptions or shutdowns, product shortages, withdrawals or suspensions of products from the market, and potential regulatory action;

•Interruptions and breaches of the Company’s information technology systems or those of the Company’s vendors, which could result in reputational, competitive, operational or other business harm as well as financial costs and regulatory action;

•Reliance on global supply chains and production and distribution processes that are complex and subject to increasing regulatory requirements that may adversely affect supply, sourcing and pricing of materials used in the Company’s products; and

•The potential that the expected benefits and opportunities related to restructuring actions may not be realized or may take longer to realize than expected, including due to any required approvals from applicable regulatory authorities.

Investors also should carefully read the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, for a description of certain risks that could, among other things, cause the Company’s actual results to differ materially from those expressed in its forward-looking statements. Investors should understand that it is not possible to predict or identify all such factors and should not consider the risks described above to be a complete statement of all potential risks and uncertainties. The Company does not undertake to publicly update any forward-looking statement that may be made from time to time, whether as a result of new information or future events or developments.

Table of Contents

Part I — Financial information

Item 1 — Financial statements

Johnson & Johnson and subsidiaries consolidated balance sheets

(Unaudited; Dollars in Millions Except Share and Per Share Data)


	June 30, 2024	December 31, 2023
Assets
Current assets:
Cash and cash equivalents (Note 4)	$24,878	21,859

Marketable securities	597	1,068
Accounts receivable, trade, less allowances $161 (2023, $166)	15,794	14,873
Inventories (Note 2)	12,169	11,181
Prepaid expenses and other	4,379	4,514

Total current assets	57,817	53,495
Property, plant and equipment at cost	48,035	47,776
Less: accumulated depreciation	(28,287)	(27,878)
Property, plant and equipment, net	19,748	19,898
Intangible assets, net (Note 3)	39,725	34,175
Goodwill (Note 3)	44,250	36,558
Deferred taxes on income (Note 5)	9,004	9,279
Other assets	10,544	14,153

Total assets	$181,088	167,558
Liabilities and shareholders’ equity
Current liabilities:
Loans and notes payable	$9,855	3,451
Accounts payable	8,848	9,632
Accrued liabilities	10,539	10,212
Accrued rebates, returns and promotions	17,539	16,001
Accrued compensation and employee related obligations	2,843	3,993
Accrued taxes on income (Note 5)	4,309	2,993

Total current liabilities	53,933	46,282
Long-term debt (Note 4)	31,636	25,881
Deferred taxes on income (Note 5)	2,635	3,193
Employee related obligations (Note 6)	6,919	7,149
Long-term taxes payable (Note 5)	341	2,881
Other liabilities	14,086	13,398

Total liabilities	$109,550	98,784
Commitments and Contingencies (Note 11)
Shareholders’ equity:
Common stock — par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares)	$3,120	3,120
Accumulated other comprehensive income (loss) (Note 7)	(11,253)	(12,527)
Retained earnings and Additional paid-in capital	155,360	153,843
Less: common stock held in treasury, at cost (712,997,000 and 712,765,000 shares)	75,689	75,662
Total shareholders’ equity	$71,538	68,774
Total liabilities and shareholders’ equity	$181,088	167,558

See Notes to Consolidated Financial Statements


Form 10-Q			1

Table of Contents

Johnson & Johnson and subsidiaries consolidated statements of earnings

(Unaudited; Dollars & Shares in Millions Except Per Share Amounts)


	Fiscal Second Quarter Ended
	June 30, 2024	Percent to Sales		July 2, 2023	Percent to Sales
Sales to customers (Note 9)	$22,447	100.0	%	$21,519	100.0	%
Cost of products sold	6,869	30.6		6,462	30.0
Gross profit	15,578	69.4		15,057	70.0
Selling, marketing and administrative expenses	5,681	25.3		5,396	25.1
Research and development expense	3,440	15.3		3,703	17.2
In-process research and development impairments	194	0.9		—	—
Interest income	(395)	(1.8)		(326)	(1.5)
Interest expense, net of portion capitalized	270	1.2		217	1.0
Other (income) expense, net	653	2.9		(384)	(1.8)
Restructuring (Note 12)	(13)	0.0		145	0.7
Earnings before provision for taxes on income	5,748	25.6		6,306	29.3
Provision for taxes on income (Note 5)	1,062	4.7		930	4.3
Net earnings from continuing operations	4,686	20.9	%	5,376	25.0	%
Net earnings (loss) from discontinued operations, net of tax (Note 13)	—			(232)
Net earnings	$4,686			$5,144
Net earnings (loss) per share (Note 8)
Continuing operations - basic	$1.95			$2.07
Discontinued operations - basic	—			(0.09)
Total net earnings (loss) per share - basic	$1.95			$1.98
Continuing operations - diluted	$1.93			$2.05
Discontinued operations - diluted	—			(0.09)
Total net earnings (loss) per share - diluted	$1.93			$1.96
Avg. shares outstanding
Basic	2,406.8			2,598.4
Diluted	2,422.0			2,625.7

See Notes to Consolidated Financial Statements

Prior year results have been recast to reflect the continuing operations of Johnson & Johnson


2

Table of Contents

Johnson & Johnson and subsidiaries consolidated statements of earnings

(Unaudited; Dollars & Shares in Millions Except Per Share Amounts)



	Fiscal Six Months Ended
	June 30, 2024	Percent to Sales		July 2, 2023	Percent to Sales
Sales to customers (Note 9)	$43,830	100.0	%	$42,413	100.0	%
Cost of products sold	13,380	30.5		13,149	31.0
Gross profit	30,450	69.5		29,264	69.0
Selling, marketing and administrative expenses	10,938	25.0		10,302	24.3
Research and development expense	6,982	16.0		7,158	16.9
In-process research and development impairments	194	0.4		49	0.1
Interest income	(759)	(1.8)		(524)	(1.2)
Interest expense, net of portion capitalized	425	1.0		429	1.0
Other (income) expense, net	3,057	7.0		6,556	15.5
Restructuring (Note 12)	151	0.3		275	0.6
Earnings before provision for taxes on income	9,462	21.6		5,019	11.8
Provision for taxes on income (Note 5)	1,521	3.5		134	0.3
Net earnings from continuing operations	7,941	18.1	%	4,885	11.5	%
Net earnings from discontinued operations, net of tax (Note 13)	—			191
Net earnings	$7,941			$5,076
Net earnings per share (Note 8)
Continuing operations - basic	$3.30			$1.88
Discontinued operations - basic	—			$0.07
Total net earnings per share - basic	$3.30			$1.95
Continuing operations - diluted	$3.27			$1.86
Discontinued operations - diluted	—			$0.07
Total net earnings per share - diluted	$3.27			$1.93
Avg. shares outstanding
Basic	2,407.5			2,601.9
Diluted	2,428.5			2,630.7

See Notes to Consolidated Financial Statements

Prior year results have been recast to reflect the continuing operations of Johnson & Johnson


Form 10-Q			3

Table of Contents

Johnson & Johnson and subsidiaries consolidated statements of comprehensive income

(Unaudited; Dollars in Millions)


	Fiscal Second Quarter Ended		Fiscal Six Months Ended
	June 30, 2024	July 2, 2023	June 30, 2024	July 2, 2023

Net earnings	$4,686	5,144	$7,941	5,076

Other comprehensive income (loss), net of tax
Foreign currency translation	(389)	(715)	1,734	(896)

Securities:
Unrealized holding gain (loss) arising during period	(1)	4	1	21
Reclassifications to earnings	—	—	—	—

Net change	(1)	4	1	21

Employee benefit plans:
Prior service cost amortization during period	(34)	(36)	(272)	(71)
Gain (loss) amortization during period	43	(34)	333	(67)

Net change	9	(70)	61	(138)

Derivatives & hedges:
Unrealized gain (loss) arising during period	75	(137)	(92)	433
Reclassifications to earnings	(179)	(139)	(430)	(136)
Net change	(104)	(276)	(522)	297

Other comprehensive income (loss)	(485)	(1,057)	1,274	(716)





Comprehensive income	$4,201	4,087	$9,215	4,360

See Notes to Consolidated Financial Statements

Amounts presented have not been recast to exclude discontinued operations.


The tax effects in other comprehensive income/(loss) for the fiscal second quarter were as follows for 2024 and 2023, respectively: Foreign Currency Translation: $65 million and $32 million; Securities: $1 million and $1 million; Employee Benefit Plans: $1 million and $21 million; Derivatives & Hedges: $28 million and $74 million.

The tax effects in other comprehensive income/(loss) for the fiscal six months were as follows for 2024 and 2023, respectively: Foreign Currency Translation: $684 million and $266 million; Securities: $6 million in 2023; Employee Benefit Plans: $41 million and $43 million; Derivatives & Hedges: $139 million and $80 million.


4

Table of Contents

Johnson & Johnson and subsidiaries consolidated statements of equity

(Unaudited; Dollars in Millions)

Fiscal Second Quarter Ended June 30, 2024


	Total	Retained Earnings and Additional Paid-in Capital	Accumulated Other Comprehensive Income (AOCI)	Common Stock Issued Amount	Treasury Stock Amount
Balance, March 31, 2024	$70,020	153,378	(10,768)	3,120	(75,710)
Net earnings	4,686	4,686	—	—	—
Cash dividends paid ($1.24 per share)	(2,985)	(2,985)	—	—	—
Employee compensation and stock option plans	438	281	—	—	157
Repurchase of common stock	(136)		—	—	(136)



Other comprehensive income (loss), net of tax	(485)	—	(485)	—	—
Balance, June 30, 2024	$71,538	155,360	(11,253)	3,120	(75,689)

Fiscal Six Months Ended June 30, 2024



	Total	Retained Earnings and Additional Paid-in Capital	Accumulated Other Comprehensive Income (AOCI)	Common Stock Issued Amount	Treasury Stock Amount
Balance, December 31, 2023	$68,774	153,843	(12,527)	3,120	(75,662)
Net earnings	7,941	7,941	—	—	—
Cash dividends paid ($2.43 per share)	(5,854)	(5,854)	—	—	—
Employee compensation and stock option plans	1,015	(570)	—	—	1,585
Repurchase of common stock	(1,611)	—	—	—	(1,611)
Other	(1)	—	—	—	(1)


Other comprehensive income (loss), net of tax	1,274	—	1,274	—	—
Balance, June 30, 2024	$71,538	155,360	(11,253)	3,120	(75,689)


Form 10-Q			5

Table of Contents

Fiscal Second Quarter Ended July 2, 2023


	Total	Retained Earnings and Additional Paid-in Capital	Accumulated Other Comprehensive Income	Common Stock Issued Amount	Treasury Stock Amount	Non-Controlling interest (NCI)
Balance, April 2, 2023	$70,869	124,558	(12,626)	3,120	(44,183)	—

Net earnings	5,144	5,144	—	—	—	—
Cash dividends paid ($1.19 per share)	(3,092)	(3,092)	—	—	—	—
Employee compensation and stock option plans	649	301	—	—	348	—
Repurchase of common stock	(381)	—	—	—	(381)	—
Other	(1)	—	—	—	(1)	—
Kenvue IPO	4,278	2,470	548			1,260	*
Other comprehensive income (loss), net of tax	(1,057)	—	(1,057)	—	—	—
Balance, July 2, 2023	$76,409	129,381	(13,135)	3,120	(44,217)	1,260

Fiscal Six Months Ended July 2, 2023




	Total	Retained Earnings and Additional Paid-in Capital	Accumulated Other Comprehensive Income	Common Stock Issued Amount	Treasury Stock Amount	Non-Controlling interest (NCI)
Balance, January 1, 2023	$76,804	128,345	(12,967)	3,120	(41,694)	—

Net earnings	5,076	5,076	—	—	—	—
Cash dividends paid ($2.32 per share)	(6,034)	(6,034)	—	—	—	—
Employee compensation and stock option plans	944	(476)	—	—	1,420	—
Repurchase of common stock	(3,918)	—	—	—	(3,918)	—
Other	(25)	—	—	—	(25)	—
Kenvue IPO	4,278	2,470	548			1,260	*

Other comprehensive income (loss), net of tax	(716)	—	(716)	—	—
Balance, July 2, 2023	$76,409	129,381	(13,135)	3,120	(44,217)	1,260

* Includes $37 million recorded in net earnings related to the 10.4% non-controlling interest in Kenvue.

See Notes to Consolidated Financial Statements


6

Table of Contents

Johnson & Johnson and subsidiaries consolidated statements of cash flows

(Unaudited; Dollars in Millions)


	Fiscal Six Months Ended
	June 30, 2024	July 2, 2023
Cash flows from operating activities
Net earnings	$7,941	5,076
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property and intangibles	3,597	3,814
Stock based compensation	643	688


Asset write-downs	379	388



Net gain on sale of assets/businesses	(223)	(47)

Deferred tax provision	(2,257)	(2,342)
Credit losses and accounts receivable allowances	—	—
Changes in assets and liabilities, net of effects from acquisitions and divestitures:
Increase in accounts receivable	(1,163)	(599)
Increase in inventories	(739)	(741)
Increase/(Decrease) in accounts payable and accrued liabilities	449	(1,061)
Decrease/(Increase) in other current and non-current assets	3,731	(1,144)
(Decrease)/Increase in other current and non-current liabilities	(3,068)	3,407

Net cash flows from operating activities	9,290	7,439

Cash flows from investing activities
Additions to property, plant and equipment	(1,783)	(1,987)
Proceeds from the disposal of assets/businesses, net (Note 10)	573	116
Acquisitions, net of cash acquired (Note 10)	(14,807)	—
Purchases of investments	(1,184)	(9,688)
Sales of investments	1,706	11,877
Credit support agreements activity, net	1,430	(798)
Other (including capitalized licenses and milestones)	(86)	19

Net cash used by investing activities	(14,151)	(461)

Cash flows from financing activities
Dividends to shareholders