Johnson and Johnson 2012 Annual Report Download - page 51

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•Other assets – Other assets are represented primarily by limited partnerships and real estate investments, as well as
commercial loans and commercial mortgages that are not classified as corporate debt. Other assets that are exchange
listed and actively traded are classified as Level 1, while inactively traded assets are classified as Level 2. Most limited
partnerships represent investments in private equity and similar funds that are valued by the general partners. These, as
well as any other assets valued using unobservable inputs, are classified as Level 3.
The following table sets forth the Retirement Plans’ trust investments measured at fair value as of December 30, 2012 and
January 1, 2012:
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total Assets
(Dollars in Millions) 2012 2011 2012 2011 2012 2011 2012 2011
Short-term investment funds $155 161 627 632 – – 782 793
Government and agency securities 53 59 1,706 1,528 – – 1,759 1,587
Debt instruments 2 1 1,641 1,106 3 9 1,646 1,116
Equity securities 8,104 6,682 1 2 4 16 8,109 6,700
Commingled funds 11 8 4,985 3,375 50 33 5,046 3,416
Insurance contracts ––––2425 2425
Other assets – 1 101 33 69 65 170 99
Trust investments at fair value $8,325 6,912 9,061 6,676 150 148 17,536 13,736
The Company’s Other Benefit Plans are unfunded except for U.S. commingled funds (Level 2) of $67 million and $8
million at December 30, 2012 and January 1, 2012, respectively, and $55 million of U.S. short-term-investment funds
(Level 2) at December 30, 2012.
The fair value of Johnson & Johnson Common Stock directly held in plan assets was $512 million (2.9% of total plan
assets) at December 30, 2012 and $476 million (3.5% of total plan assets) at January 1, 2012.
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
December 30, 2012 and January 1, 2012:
(Dollars in Millions)
Debt
Instruments
Equity
Securities
Commingled
Funds
Insurance
Contracts
Other
Assets
Total
Level 3
Balance January 2, 2011 $13 24 35 29 82 183
Realized gains (losses) – 3 – 1 – 4
Unrealized gains (losses) 1 (2) (6) (2) (17) (26)
Purchases, sales, issuances and settlements, net (5) (9) 4 (3) – (13)
Balance January 1, 2012 9 16 33 25 65 148
Realized gains (losses) – (1) – – (5) (6)
Unrealized gains (losses) – – – – – –
Purchases, sales, issuances and settlements, net (6) (11) 17 (1) 9 8
Balance December 30, 2012 $3 4 50 24 69 150
Johnson & Johnson 2012 Annual Report •43