Johnson and Johnson 2015 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2015 Johnson and Johnson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Retirement Plans
Other Benefit
Plans
(Dollars in Millions) 2015 2014 2015 2014
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive
Income
Net periodic benefit cost $971 743 604 503
Net actuarial (gain) loss (75) 4,942 (389) 1,015
Amortization of net actuarial loss (745) (460) (201) (136)
Prior service cost (credit) 60 (60) – (253)
Amortization of prior service (cost) credit (2) (6) 33 34
Effect of exchange rates (218) (273) (1) –
Total recognized in other comprehensive income, before tax $(980) 4,143 (558) 660
Total recognized in net periodic benefit cost and other comprehensive income $(9) 4,886 46 1,163
The Company plans to continue to fund its U.S. Qualified Plans to comply with the Pension Protection Act of 2006.
International Plans are funded in accordance with local regulations. Additional discretionary contributions are made when
deemed appropriate to meet the long-term obligations of the plans. For certain plans, funding is not a common practice, as
funding provides no economic benefit. Consequently, the Company has several pension plans that are not funded.
In 2015, the Company contributed $435 million and $317 million to its U.S. and international pension plans, respectively.
The following table displays the funded status of the Company’s U.S. Qualified & Non-Qualified pension plans and
international funded and unfunded pension plans at December 31, 2015 and December 28, 2014, respectively:
U.S. Plans International Plans
Qualified Plans Non-Qualified Plans Funded Plans Unfunded Plans
(Dollars in Millions) 2015 2014 2015 2014 2015 2014 2015 2014
Plan Assets $15,113 15,201 – – 7,141 7,374 – –
Projected Benefit Obligation 15,280 15,571 1,675 1,683 8,542 9,203 358 432
Accumulated Benefit Obligation 13,876 13,875 1,411 1,363 7,661 8,205 314 373
Over (Under) Funded Status
Projected Benefit Obligation $(167) (370) (1,675) (1,683) (1,401) (1,829) (358) (432)
Accumulated Benefit Obligation 1,237 1,326 (1,411) (1,363) (520) (831) (314) (373)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected
benefit obligation and plan assets of $4.5 billion, $5.3 billion and $1.9 billion, respectively, at the end of 2015, and $8.2
billion, $9.4 billion and $5.3 billion, respectively, at the end of 2014.
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions) 2016 2017 2018 2019 2020 2021-2025
Projected future benefit payments
Retirement plans $839 872 911 967 1,031 6,098
Other benefit plans $331 322 315 312 310 1,499
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts
do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions) 2016 2017 2018 2019 2020 2021-2025
Projected future contributions $76 77 82 88 93 559
Each pension plan is overseen by a local committee or board that is responsible for the overall administration and
investment of the pension plans. In determining investment policies, strategies and goals, each committee or board
considers factors including, local pension rules and regulations; local tax regulations; availability of investment vehicles
Johnson & Johnson 2015 Annual Report •53