Johnson and Johnson 2015 Annual Report Download - page 55

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The contractual maturities of substantially all available for sale securities are from one to five years at January 3, 2016.
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 investment grade credit rating.
3. Inventories
At the end of 2015 and 2014, inventories were comprised of:
(Dollars in Millions) 2015 2014
Raw materials and supplies $936 1,214
Goods in process 2,241 2,461
Finished goods 4,876 4,509
Total inventories $8,053 8,184
4. Property, Plant and Equipment
At the end of 2015 and 2014, property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions) 2015 2014
Land and land improvements $780 833
Buildings and building equipment 9,829 10,046
Machinery and equipment 22,511 22,206
Construction in progress 3,528 3,600
Total property, plant and equipment, gross $36,648 36,685
Less accumulated depreciation 20,743 20,559
Total property, plant and equipment, net $15,905 16,126
The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense
capitalized in 2015, 2014 and 2013 was $102 million, $115 million and $105 million, respectively.
Depreciation expense, including the amortization of capitalized interest in 2015, 2014 and 2013, was $2.5 billion, $2.5
billion and $2.7 billion, respectively.
Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated
depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The
difference, if any, between the net asset value and the proceeds are recorded in earnings.
5. Intangible Assets and Goodwill
At the end of 2015 and 2014, the gross and net amounts of intangible assets were:
(Dollars in Millions) 2015 2014
Intangible assets with definite lives:
Patents and trademarks – gross $8,299 9,074
Less accumulated amortization 4,745 4,700
Patents and trademarks – net $3,554 4,374
Customer relationships and other intangibles – gross $17,583 17,970
Less accumulated amortization 5,816 5,227
Customer relationships and other intangibles – net $11,767 12,743
Intangible assets with indefinite lives:
Trademarks $7,023 7,263
Purchased in-process research and development 3,420 2,842
Total intangible assets with indefinite lives $10,443 10,105
Total intangible assets – net $25,764 27,222
Johnson & Johnson 2015 Annual Report •43