Johnson and Johnson 2013 Annual Report Download - page 41

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3. Inventories
At the end of 2013 and 2012, inventories were comprised of:
(Dollars in Millions) 2013 2012
Raw materials and supplies $1,224 1,416
Goods in process 2,612 2,262
Finished goods 4,042 3,817
Total inventories $7,878 7,495
4. Property, Plant and Equipment
At the end of 2013 and 2012, property, plant and equipment at cost and accumulated depreciation were:
(Dollars in Millions) 2013 2012
Land and land improvements $885 793
Buildings and building equipment 10,423 10,046
Machinery and equipment 22,527 21,075
Construction in progress 3,298 2,740
Total property, plant and equipment, gross $37,133 34,654
Less accumulated depreciation 20,423 18,557
Total property, plant and equipment, net $16,710 16,097
The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense
capitalized in 2013, 2012 and 2011 was $105 million, $115 million and $84 million, respectively.
Depreciation expense, including the amortization of capitalized interest in 2013, 2012 and 2011, was $2.7 billion, $2.5
billion and $2.3 billion, respectively.
Upon retirement or other disposal of property, plant and equipment, the costs and related amounts of accumulated
depreciation or amortization are eliminated from the asset and accumulated depreciation accounts, respectively. The
difference, if any, between the net asset value and the proceeds are recorded in earnings.
5. Intangible Assets and Goodwill
At the end of 2013 and 2012, the gross and net amounts of intangible assets were:
(Dollars in Millions) 2013 2012
Intangible assets with definite lives:
Patents and trademarks – gross $9,164 8,890
Less accumulated amortization 4,146 3,416
Patents and trademarks – net $5,018 5,474
Customer relationships and other intangibles – gross $19,027 18,755
Less accumulated amortization 4,872 4,030
Customer relationships and other intangibles – net $14,155 14,725
Intangible assets with indefinite lives:
Trademarks $7,619 7,648
Purchased in-process research and development 1,155 905
Total intangible assets with indefinite lives $8,774 8,553
Total intangible assets – net $27,947 28,752
Johnson & Johnson 2013 Annual Report •31