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64 JOHNSON & JOHNSON 2006 ANNUAL REPORT
The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2006 and
2005 for the Company’s defined benefit retirement plans and other postretirement plans:
Retirement Plans Other Benefit Plans
_______________________ _______________________
(Dollars in Millions) 2006 2005 2006 2005
Change in Benefit Obligation
Projected benefit obligation—beginning of year $10,171 8,941 $2,325* 1,593
Service costs 552 462 122 56
Interest costs 570 488 136 87
Plan participant contributions 47 22 — —
Amendments7 13 — —
Actuarial (gains)/losses (99) 932 130 57
Divestitures & acquisitions 443 —101 —
Curtailments & settlements(7) (1) — —
Benefits paid from plan (402) (366) (147) (75)
Effect of exchange rates 378 (320) 1(1)
Projected benefit obligation—end of year $11,660 10,171 $2,668 1,717
Change in Plan Assets
Plan assets at fair value —beginning of year $8,108 7,125 $ 34 37
Actual return on plan assets 966 801 2 1
Company contributions 259 714 141 71
Plan participant contributions 47 22 — —
Divestitures & acquisitions 300 ———
Curtailments & settlements(7) ———
Benefits paid from plan assets (402) (366) (147) (75)
Effect of exchange rates 267 (188) — —
Plan assets at fair value —end of year $9,538 8,108 $ 30 34
Funded status at end of year $(2,122) (2,063) $(2,638) (1,683)
Unrecognized actuarial losses 1,996 2,484 1,046 574
Unrecognized prior service costs 44 49 (42) (48)
Unrecognized net transition assets 7 5 — —
Total recognized in the consolidated balance sheet $(75) 475 $(1,634) (1,157)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Before Adoption of SFAS 158
Book accruals $(1,703) (1,264) (1,634) (1,157)
Prepaid benefits1,062 1,218 — —
Intangible assets 38 41 — —
Accumulated comprehensive income 528 480 — —
Total recognized in the consolidated balance sheet $(75) 475 $(1,634) (1,157)
After Adoption of SFAS 158
Non-current assets $259 —
Current liabilities (26) (81)
Non-current liabilities (2,355) (2,557)
Total recognized in the consolidated balance sheet $(2,122) $(2,638)
Amounts Recognized in Accumulated Other Comprehensive Income consist of
Net actuarial losses $1,996 1,046
Prior service costs/(credits) 44 (42)
Unrecognized net transition assets 7 0
Total before tax effects $2,047 $1,004
Change in Accumulated Other Comprehensive Income due to Adoption of SFAS 158 (before tax effects) $1,519 $1,004
Accumulated Benefit Obligations End of Year $9,804 8,570
*Includes other post employment benefits as per the adoption of SFAS No. 158.