Johnson and Johnson 2010 Annual Report Download - page 53

The Company’s significant financial assets and liabilities measured at fair value as of January 2, 2011 and January 3, 2010 were as follows:
2010 2009
________________________________________________ ______
(Dollars in Millions) Level 1 Level 2 Level 3 Total Total(1)
Derivatives designated as hedging instruments:
Assets:
Foreign exchange contracts $—321 —321 436
Cross currency interest rate swaps (2) —17 —17 126
Total —338 —338 562
Liabilities:
Foreign exchange contracts —586 —586 608
Cross currency interest rate swaps (3) —502 —502 571
Total —1,088 —1,088 1,179
Derivatives not designated as hedging instruments:
Assets:
Foreign exchange contracts —19 —19 33
Liabilities:
Foreign exchange contracts —39 —39 40
Other investments$1,165 — — 1,165 1,134
(1)2009 assets and liabilities are all classified as Level 2 with the exception of other investments of $1,134 million which are classified as Level 1.
(2) Includes $14 million and $119 million of non-current assets for the fiscal years ending January 2, 2011 and January 3, 2010, respectively.
(3) Includes $502 million and $517 million of non-current liabilities for the fiscal years ending January 2, 2011 and January 3, 2010, respectively.
See Notes 2 and 7 for financial assets and liabilities held at carrying amount on the Consolidated Balance Sheet.
NOTES TO CONSOLIDATED FINANCIAL ST A TEMENTS51
7. Borrowings
The components of long-term debt are as follows:
EffectiveEffective
(Dollars in Millions) 2010 Rate % 2009 Rate %
5.15% Debentures due 2012 $599 5.18% 599 5.18
3.80% Debentures due 2013 500 3.82 500 3.82
5.55% Debentures due 2017 1,000 5.55 1,000 5.55
5.15% Debentures due 2018 898 5.15 898 5.15
4.75% Notes due 2019
(1B Euro 1.3268)(2)/(1B Euro 1.4382)(3) 1,319(2) 5.35 1,429(3) 5.35
3% Zero Coupon Convertible
Subordinated Debentures due 2020 194 3.00 188 3.00
2.95% Debentures due 2020 541 3.15 — —
6.73% Debentures due 2023 250 6.73 250 6.73
5.50% Notes due 2024
(500MM GBP 1.5403)(2)/
(500MM GBP 1.6189)(3) 764(2) 5.71 803(3) 5.71
6.95% Notes due 2029 294 7.14 294 7.14
4.95% Debenture due 2033 500 4.95 500 4.95
5.95% Notes due 2037 995 5.99 995 5.99
5.86% Debentures due 2038 700 5.86 700 5.86
4.50% Debentures due 2040 539 4.63 — —
Other (Includes Industrial
Revenue Bonds)76 101
9,169(4) 5.25(1) 8,257(4) 5.42(1)
Less current portion 13 34
$9,156 8,223
(1)Weighted average effective rate.
(2) Translation rate at January 2, 2011.
(3) Translation rate at January 3, 2010.
(4) The excess of the fair value over the carrying value of debt was $1.0 billion in 2010 and
$0.8 billion in 2009.
Fair value of the non-current debt was estimated using market
prices, which were corroborated by quoted broker prices in
activemarkets.
The Company has access to substantial sources of funds at
numerous banks worldwide. In September 2010, the Company
secured a new 364-day Credit Facility. Total credit available to the
Company approximates $10 billion, which expires September 22,
2011. Interest charged on borrowings under the credit line agree-
ments is based on either bids provided by banks, the prime rate or
London Interbank Offered Rates (LIBOR), plus applicable margins.
Commitment fees under the agreements are not material.
Throughout 2010 the Company continued to have access to
liquidity through the commercial paper market. Short-term borrow-
ings and the current portion of long-term debt amounted to approxi-
mately $7.6 billion at the end of 2010, of which $7.4 billion was
borrowed under the Commercial Paper Program. The remainder
represents principally local borrowing by international subsidiaries.
The Company has a shelf registration with the Securities and
Exchange Commission that enables the Company to issue on a
timely basis debt securities and warrants to purchase debt securities.
Aggregate maturities of long-term obligations commencing in
2010 are:
(Dollars in Millions) After
2011 2012 2013 2014 2015 2015
$13 644 509 9—7,994