Johnson and Johnson 2010 Annual Report Download - page 60

58 JOHNSON & JOHNSON 2010 ANNUAL REPORT
LEVEL 3 GAINS AND LOSSES
The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended January 2, 2011 and
January 3, 2010:
Debt Equity Commingled InsuranceOther Total
(Dollars in Millions) InstrumentsSecurities Funds Contracts Assets Level 3
Balance December 28, 2008 $ 7 15 15 29 85 151
Realized gains (losses)——— 3—3
Unrealized gains (losses)2(2) (2) —(3) (5)
Purchases, sales, issuances and settlements, net(4) 2 13 — — 11
Balance January 3, 2010 5 15 26 32 82 160
Realized gains (losses)(1) — — (3) 1(3)
Unrealized gains (losses)144—(3) 6
Purchases, sales, issuances and settlements, net855—2 20
Balance January 2, 2011 $13 24 35 29 82 183
11. Savings Plan
The Company has voluntary 401 (k) savings plans designed to
enhance the existing retirement programs covering eligible employ-
ees. The Company matches a percentage of each employee’s
contributions consistent with the provisions of the plan for which
he/she is eligible. Total Company matching contributions to the
plans were $157 million, $163 million and $166 million in 2010, 2009
and 2008, respectively.
12. Capital and Treasury Stock
Changes in treasury stock were:
(Amounts in Millions Except Treasury Stock Treasury Stock
_______________________
Number of Shares in Thousands)Shares Amount
Balance at December 30, 2007279,620 $14,388
Employee compensation and stock option plans (29,906) (2,005)
Conversion of subordinated debentures (19) (1)
Repurchase of common stock 100,970 6,651
Balance at December 28, 2008 350,665 19,033
Employee compensation and stock option plans (22,161) (1,377)
Conversion of subordinated debentures (96) (6)
Repurchase of common stock 37,114 2,130
Balance at January 3, 2010 365,522 19,780
Employee compensation and stock option plans (28,827) (1,792)
Conversion of subordinated debentures (39) (2)
Repurchase of common stock 45,090 2,797
Balance at January 2, 2011 381,746 $20,783
Aggregate shares of Common Stock issued were approximately
3,119,843,000 shares at the end of 2010, 2009 and 2008.
Cash dividends paid were $2.110 per share in 2010, compared
with dividends of $1.930 per share in 2009, and $1.795 per share
in 2008.
13. Accumulated Other Comprehensive Income
Components of other comprehensive income/(loss) consist of
the following:
Total
Gains/ Accumulated
Foreign Gains/ (Losses) on Other
Currency(Losses) on Employee Derivatives Comprehensive
(Dollars in Millions) Translation Securities Benefit Plans & Hedges Income/(Loss)
December 30, 2007$628 84 (1,360) (45) (693)
2008 changes
Unrealized gain (loss)—(32) —94
Net amount reclassed
to net earnings —(27) —72
Net 2008 changes (2,499) (59) (1,870) 166 (4,262)
December 28, 2008 $(1,871) 25 (3,230) 121 (4,955)
2009 changes
Unrealized gain (loss)—(52) —38
Net amount reclassed
to net earnings —(3) —(14)
Net 2009 changes 1,363 (55) 565 24 1,897
January 3, 2010 $(508) (30) (2,665) 145 (3,058)
2010 changes
Unrealized gain (loss)—99 —(333)
Net amount reclassed
to net earnings —(45) —288
Net 2010 changes (461) 54 (21) (45) (473)
January 2, 2011 $(969) 24 (2,686) 100 (3,531)
The tax effect on the unrealized gains/(losses) on the equity securi-
ties was expense of $13 million in 2010, income of $14 million in
2009 and expense of $14 million in 2008. The tax effect related
to employee benefit plans was $11 million, $302 million and
$1,090 million in 2010, 2009 and 2008, respectively. The tax effect
on the gains/(losses) on derivatives and hedges was expense of
$54 million, $78 million and $70 million in 2010, 2009 and 2008,
respectively. See Note 6 for additional information relating to
derivatives and hedging.
The currency translation adjustments are not adjusted for
income taxes as they relate to permanent investments in
international subsidiaries.