Johnson and Johnson 2014 Annual Report Download - page 23

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Total borrowings at the end of 2014 and 2013 were $18.8 billion and $18.2 billion, respectively. The increase in
borrowings between 2014 and 2013 was a result of financing for general corporate purposes. In 2014, net cash (cash
and current marketable securities, net of debt) was $14.3 billion compared to net cash of $11.0 billion in 2013. Total debt
represented 21.2% of total capital (shareholders’ equity and total debt) in 2014 and 19.7% of total capital in 2013.
Shareholders’ equity per share at the end of 2014 was $25.06 compared to $26.25 at year-end 2013, a decrease of
4.5%.
A summary of borrowings can be found in Note 7 to the Consolidated Financial Statements.
Contractual Obligations and Commitments
The Company’s contractual obligations are primarily for leases, debt and unfunded retirement plans. There are no other
significant obligations. To satisfy these obligations, the Company will use cash from operations. The following table
summarizes the Company’s contractual obligations and their aggregate maturities as of December 28, 2014 (see Notes 7,
10 and 16 to the Consolidated Financial Statements for further details):
(Dollars in Millions)
Long-Term
Debt
Obligations
Interest on
Debt
Obligations
Unfunded
Retirement
Plans
Operating
Leases Total
2015 $7 603 74 200 884
2016 2,152 597 75 157 2,981
2017 1,722 557 78 111 2,468
2018 1,496 493 84 80 2,153
2019 1,713 448 89 66 2,316
After 2019 8,039 4,679 531 77 13,326
Total $15,129 7,377 931 691 24,128
For tax matters, see Note 8 to the Consolidated Financial Statements.
Dividends
The Company increased its dividend in 2014 for the 52nd consecutive year. Cash dividends paid were $2.76 per share in
2014 compared with dividends of $2.59 per share in 2013, and $2.40 per share in 2012. The dividends were distributed
as follows:
2014 2013 2012
First quarter $0.66 0.61 0.57
Second quarter 0.70 0.66 0.61
Third quarter 0.70 0.66 0.61
Fourth quarter 0.70 0.66 0.61
Total $2.76 2.59 2.40
On January 5, 2015, the Board of Directors declared a regular quarterly cash dividend of $0.70 per share, payable on
March 10, 2015, to shareholders of record as of February 24, 2015. The Company expects to continue the practice of
paying regular cash dividends.
Other Information
Critical Accounting Policies and Estimates
Management’s discussion and analysis of results of operations and financial condition are based on the Company’s
consolidated financial statements that have been prepared in accordance with accounting principles generally accepted in
the U.S. (GAAP). The preparation of these financial statements requires that management make estimates and
Johnson & Johnson 2014 Annual Report •13