Johnson and Johnson 2014 Annual Report Download - page 41

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2. Cash, Cash Equivalents and Current Marketable Securities
At the end of 2014 and 2013, cash, cash equivalents and current marketable securities were comprised of:
(Dollars in Millions) 2014 2013
Cash $2,336 2,789
Government securities and obligations 20,610 7,632
Reverse repurchase agreements 6,735 15,006
Corporate debt securities 1,343 1,467
Money market funds 1,352 1,886
Time deposits 713 426
Total cash, cash equivalents and current marketable securities $33,089 29,206
The estimated fair value approximated cost as of December 28, 2014 and December 29, 2013.
As of December 28, 2014, current marketable securities consisted of $17,682 million, and $884 million of government
securities and obligations and corporate debt securities, respectively, with no reverse repurchase agreements.
As of December 29, 2013, current marketable securities consisted of $6,160 million, $1,100 million and $1,019 million of
government securities and obligations, reverse repurchase agreements and corporate debt securities, respectively.
Fair value of government securities and obligations and corporate debt securities were estimated using quoted broker
prices and significant other observable inputs.
The Company invests its excess cash in both deposits with major banks throughout the world and other high-quality
money market instruments. The Company has a policy of making investments only with commercial institutions that have at
least an “A” (or equivalent) credit rating.
3. Inventories
At the end of 2014 and 2013, inventories were comprised of:
(Dollars in Millions) 2014 2013
Raw materials and supplies $1,214 1,224
Goods in process 2,461 2,612
Finished goods 4,509 4,042
Total inventories $8,184 7,878
4. Property, Plant and Equipment
At the end of 2014 and 2013 , property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions) 2014 2013
Land and land improvements $833 885
Buildings and building equipment 10,046 10,423
Machinery and equipment 22,206 22,527
Construction in progress 3,600 3,298
Total property, plant and equipment, gross $36,685 37,133
Less accumulated depreciation 20,559 20,423
Total property, plant and equipment, net $16,126 16,710
The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense
capitalized in 2014, 2013 and 2012 was $115 million, $105 million and $115 million, respectively.
Johnson & Johnson 2014 Annual Report •31