Johnson and Johnson 2009 Annual Report Download - page 51

The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2009 and 2008 for
the Company’s defined benefit retirement plans and other postretirement plans:
Retirement Plans Other Benefit Plans
_______________________ _______________________
(Dollars in Millions) 2009 2008 2009 2008
Change in Benefit Obligation
Projected benefit obligation — beginning of year $11,923 12,002 $ 2,765 2,721
Service cost 511 545 137 142
Interest cost 746 701 174 166
Plan participant contributions 50 60 ——
Amendments 3 10 —1
Actuarial losses (gains) 412 (318) 51 (124)
Divestitures & acquisitions 15 —13 (2)
Curtailments & settlements & restructuring (3) (2) 748 —
Benefits paid from plan (570) (535) (313) (122)
Effect of exchange rates 362 (540) 15 (17)
Projected benefit obligation — end of year* $13,449 11,923 $ 3,590 2,765
Change in Plan Assets
Plan assets at fair value — beginning of year $ 7,677 10,469 $ 17 29
Actual return (loss) on plan assets 2,048 (2,787) 4 (7)
Company contributions 1,354 978 308 117
Plan participant contributions 50 60 ——
Settlements —(1) ——
Benefits paid from plan assets (570) (535) (313) (122)
Effect of exchange rates 364 (507) ——
Plan assets at fair value — end of year $10,923 7,677 $ 16 17
Funded status at — end of year* $ (2,526) (4,246) $(3,574) (2,748)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets $ 266 136 $ ——
Current liabilities (53) (45) (484) (212)
Non-current liabilities (2,739) (4,337) (3,090) (2,536)
Total recognized in the consolidated balance sheet — end of year $ (2,526) (4,246) $(3,574) (2,748)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial loss $ 3,415 4,209 $ 924 1,006
Prior service cost (credit) 47 43 (23) (29)
Unrecognized net transition obligation 56——
Total before tax effects $ 3,467 4,258 $ 901 977
Accumulated Benefit Obligations — end of year* $11,687 10,357
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net periodic benefit cost $ 481 451 $ 359 366
Net actuarial (gain) loss (704) 3,344 48 60
Amortization of net actuarial loss (134) (68) (131) (65)
Prior service cost 3 10 —1
Amortization of prior service cost (13) (11) 56
Effect of exchange rates 57 (102) 2 (1)
Total recognized in other comprehensive income, before tax $ (791) 3,173 $ (76) 1
Total recognized in net periodic benefit cost and other comprehensive income $ (310) 3,624 $ 283 367
*The Company does not fund certain plans, as funding is not required. $1.2 billion of the projected
benefit obligation and $1.2 billion of the underfunded status for each of the fiscal years 2009 and
2008 relates to the unfunded pension plans. $1.0 billion and $0.9 billion of the accumulated benefit
obligation for the fiscal years 2009 and 2008, respectively, relate to these unfunded pension plans.
Plans with accumulated benefit obligations in excess of plan assets consist of the following:
Retirement Plans
_ ______________________
(Dollars in Millions) 2009 2008
Accumulated benefit obligation $(4,065) (9,885)
Projected benefit obligation (4,663) (11,379)
Plan assets at fair value 2,564 7,021
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S 49