Johnson and Johnson 2008 Annual Report Download - page 60

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The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2008 and 2007 for
the Company’s defined benefit retirement plans and other postretirement plans:
Retirement Plans Other Benefit Plans
_______________________ _______________________
(Dollars in Millions) 2008 2007 2008 2007
Change in Benefit Obligation
Projected benefit obligation — beginning of year $12,002 11,660 $ 2,721 2,668
Service cost 545 597 142 140
Interest cost 701 656 166 149
Plan participant contributions 60 62 ——
Amendments 10 14 1 —
Actuarial (gains) losses (318) (876) (124) (1)
Divestitures & acquisitions —79(
2)8
Curtailments & settlements (2) (46) ——
Benefits paid from plan (535) (481) (122) (255)
Effect of exchange rates (540) 337 (17) 12
Projected benefit obligation — end of year*$11,923 12,002 $ 2,765 2,721
Change in Plan Assets
Plan assets at fair value — beginning of year $10,469 9,538 $ 29 30
Actual return (loss) on plan assets (2,787) 743 (7) 4
Company contributions 978 317 117 250
Plan participant contributions 60 62 ——
Settlements (1) (38) ——
Divestitures & acquisitions —55 ——
Benefits paid from plan assets (535) (481) (122) (255)
Effect of exchange rates (507) 273 — —
Plan assets at fair value — end of year $ 7,677 10,469 $ 17 29
Funded status at — end of year*$ (4,246) (1,533) $(2,748) (2,692)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets $ 136 481 — —
Current liabilities (45) (43) (212) (262)
Non-current liabilities (4,337) (1,971) (2,536) (2,430)
Total recognized in the consolidated balance sheet — end of year $ (4,246) (1,533) $(2,748) (2,692)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Netactuarial (gain) loss $ (2,064) 1,027 $ (472) 1,013
Prior service cost (credit) 551 31 (36)
Unrecognized net transition asset 67——
Total before tax effects $ (2,053) 1,085 $ (441) 977
Accumulated Benefit Obligations —end of year* $10,357 10,282
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net periodic benefit cost $ 451 646 $ 366 346
Netactuarial loss (gain) 3,344 (555) 60 11
Amortization of net actuarial loss (68) (435) (65) (13)
Prior service cost (11) (9) 1 (34)
Amortization of prior service cost 10 14 6 6
Effect ofexchange rates (102) 23 (1) 3
Total recognized in other comprehensive income, before tax $ 3,173 (962) $ 1 (27)
Total recognized in net periodic benefit cost and other comprehensive income $ 3,624 (316) $ 367 319
*The Company does not fund certain plans, as funding is not required. $1.2 billion of the projected
benefit obligation, $1.2 billion of the underfunded status, and $0.9 billion of the accumulated
benefit obligation for the fiscal years 2008 and 2007 relates to these unfunded pension plans.
Plans with accumulated benefit obligations in excess of plan assets consist of the following:
Retirement Plans
______________________
(Dollars in Millions) 2008 2007
Accumulated benefit obligation $ (9,885) (4,914)
Projected benefit obligation (11,379) (5,233)
Plan assets at fair value 7,021 3,735
58 JOHNSON & JOHNSON 2008 ANNUAL REPORT