Johnson and Johnson 2011 Annual Report Download - page 53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 51
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 January 1, 2012 and January 2, 2011, respectively:
U.S. Plans International Plans
Qualified Plans Non-Qualified Plans Funded Plans Unfunded Plans
(Dollars in Millions) 2011 2010 2011 2010 2011 2010 2011 2010
Plan assets $ 9,132 8,815 ——4,604 4,618 ——
Projected benefit obligation 10,283 8,460 1,155 955 5,626 5,215 360 363
Accumulated benefit obligation 9,147 7,561 903 761 5,078 4,489 324 323
Over (Under) Funded Status
Projected benefit obligation (1,151) 355 (1,155) (955) (1,022) (597) (360) (363)
Accumulated benefit obligation $ (15) 1,254 (903) (761) (474) 129 (324) (323)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected benefit obligation
and plan assets of $13.8 billion, $15.4 billion and $11.7 billion, respectively at the end of 2011 and $2.4 billion, $2.8 billion and $0.8 billion,
respectively at the end of 2010.
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions) 2012 2013 2014 2015 2016 2017-2021
Projected future benefit payments
Retirement plans $627 636 653 682 730 4,475
Other benefit plans — gross 365 277 216 218 218 1,112
Medicare rebates (11) —————
Other benefit plans — net $354 277 216 218 218 1,112
The following table displays the projected future minimum contributions to the Company’s U.S. and international unfunded retirement
plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions) 2012 2013 2014 2015 2016 2017-2021
Projected future contributions
Unfunded U.S. retirement plans $39 41 44 47 51 329
Unfunded international retirement plans $22 21 20 22 26 126
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 (separate accounts, commingled accounts, insurance funds, etc.);
funded status of the plans; ratio of actives to retirees; duration of liabilities; and other relevant factors including, diversification, liquidity of
local markets and liquidity of base currency. A majority of the Company’s pension funds are open to new entrants and are expected to be
on-going plans. Permitted investments are primarily liquid and/or listed, with little reliance on illiquid and non-traditional investments such
as hedge funds. An asset allocation of 75% equities and 25% fixed income is generally pursued unless local regulations and illiquidity
require otherwise.
The Company’s retirement plan asset allocation at the end of 2011 and 2010 and target allocations for 2012 are as follows:
Percent of Target
Plan Assets Allocation
2011 2010 2012
U.S. Retirement Plans
Equity securities 74% 79 75
Debt securities 26 21 25
Total plan assets 100% 100 100
International Retirement Plans
Equity securities 62% 65 64
Debt securities 38 35 36
Total plan assets 100% 100 100
The Company’s other benefit plans are unfunded except for U.S. life
insurance contract assets of $8 million and $14 million at January 1,
2012 and January 2, 2011, respectively.
The fair value of Johnson & Johnson Common Stock directly
held in plan assets was $476 million (3.5% of total plan assets) at
January 1, 2012 and $453 million (3.4% of total plan assets) at
January 2, 2011.