JNJ · 10-Q · 2026Q2 · Full report

Accrued Legal and Regulatory

JOHNSON & JOHNSON · 2026-07-23 · Importance 89 · Surprise 82 · In source text

Other expense for fiscal six months 2026 was $0.6 billion compared with $7.2 billion of income in 2025, a $7.8 billion year-over-year swing. Fiscal six months 2026 included $0.8 billion of charges for talc matters, while fiscal six months 2025 included approximately $7.0 billion related to the talc reserve reversal. The Company expects to fund the remaining approximately $3.7 billion related to talc matters through operating cash flow, external financing, credit facilities, and commercial paper access. Fiscal second-quarter 2026 also included $0.3 billion of litigation-related expense, primarily related to talc matters.

Key facts

• The Company anticipates using operating cash flows, ability to raise funds, credit facilities and commercial paper markets to fund operating needs including remaining balance of approximately $3.7 billion related to talc matters, $1.7 billion related to the current portion of Corporate bonds due and approximately $0.9 billion related to opioid settlements. source
• Other (income) expense, net for the fiscal six months of 2026 was an expense of $0.6 billion as compared to $7.2 billion of income in the prior year, primarily due to litigation related changes and talc matters. source

Impact estimates