Johnson and Johnson 2012 Annual Report Download - page 49

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The Company plans to continue to fund its U.S. Qualified Plans to comply with the Pension Protection Act of 2006.
International Plans are funded in accordance with local regulations. Additional discretionary contributions are made when
deemed appropriate to meet the long-term obligations of the plans. For certain plans, funding is not a common practice, as
funding provides no economic benefit. Consequently, the Company has several pension plans that are not funded.
In 2012, the Company contributed $1,399 million and $439 million to its U.S. and international pension plans,
respectively.
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 December 30, 2012 and January 1, 2012, respectively:
U.S. Plans International Plans
Qualified Plans Non-Qualified Plans Funded Plans Unfunded Plans
(Dollars in Millions) 2012 2011 2012 2011 2012 2011 2012 2011
Plan Assets $11,464 9,132 – – 6,072 4,604 – –
Projected Benefit Obligation 12,420 10,283 1,343 1,155 7,586 5,626 480 360
Accumulated Benefit Obligation 11,001 9,147 1,070 903 6,774 5,078 422 324
Over (Under) Funded Status
Projected Benefit Obligation $(956) (1,151) (1,343) (1,155) (1,514) (1,022) (480) (360)
Accumulated Benefit Obligation 463 (15) (1,070) (903) (702) (474) (422) (324)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected
benefit obligation and plan assets of $6.5 billion, $7.4 billion and $4.0 billion, respectively at the end of 2012 and $13.8
billion, $15.4 billion and $11.7 billion, respectively, at the end of 2011.
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions) 2013 2014 2015 2016 2017 2018-2022
Projected future benefit payments
Retirement plans $695 715 736 775 820 4,934
Other benefit plans – gross 327 221 220 220 220 1,121
Medicare rebates (11) –––– –
Other benefit plans – net $316 221 220 220 220 1,121
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) 2013 2014 2015 2016 2017 2018-2022
Projected future contributions
Unfunded U.S. retirement plans $43 46 49 52 56 354
Unfunded international retirement plans $25 20 22 24 24 148
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.
Johnson & Johnson 2012 Annual Report •41