Johnson and Johnson 2013 Annual Report Download - page 51

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Retirement Plans
Other Benefit
Plans
(Dollars in Millions) 2013 2012 2013 2012
Changes in Plan Assets and Benefit Obligations Recognized in Other
Comprehensive Income
Net periodic benefit cost $1,055 865 452 409
Net actuarial (gain) loss (3,559) 2,007 248 458
Amortization of net actuarial loss (681) (494) (111) (76)
Prior service cost 34 12 8 –
Amortization of prior service (cost) credit (13) (6) – 3
Effect of exchange rates (6) 79 (6) 1
Total recognized in other comprehensive income, before tax $(4,225) 1,598 139 386
Total recognized in net periodic benefit cost and other comprehensive income $(3,170) 2,463 591 795
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 2013, the Company contributed $58 million and $507 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 29, 2013 and December 30, 2012, respectively:
U.S. Plans International Plans
Qualified Plans Non-Qualified Plans Funded Plans Unfunded Plans
(Dollars in Millions) 2013 2012 2013 2012 2013 2012 2013 2012
Plan Assets $13,990 11,464 – – 6,911 6,072 – –
Projected Benefit Obligation 11,921 12,420 1,296 1,343 7,797 7,586 474 480
Accumulated Benefit Obligation 10,745 11,001 1,065 1,070 6,974 6,774 419 422
Over (Under) Funded Status
Projected Benefit Obligation $2,069 (956) (1,296) (1,343) (886) (1,514) (474) (480)
Accumulated Benefit Obligation 3,245 463 (1,065) (1,070) (63) (702) (419) (422)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected
benefit obligation and plan assets of $5.4 billion, $5.8 billion and $3.3 billion, respectively, at the end of 2013, and $6.5
billion, $7.4 billion and $4.0 billion, respectively, at the end of 2012.
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions) 2014 2015 2016 2017 2018 2019-2023
Projected future benefit payments
Retirement plans $778 794 840 890 933 6,071
Other benefit plans $313 309 305 302 299 1,469
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts
do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions) 2014 2015 2016 2017 2018 2019-2023
Projected future contributions $74 73 78 95 89 524
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;
Johnson & Johnson 2013 Annual Report •41