Johnson and Johnson 2014 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2014 Johnson and Johnson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

7. Borrowings
The components of long-term debt are as follows:
(Dollars in Millions) 2014
Effective
Rate % 2013
Effective
Rate %
3 month LIBOR+0.09% FRN due 2014 $ – –% 750 0.33
1.20% Notes due 2014 – – 999 1.24
2.15% Notes due 2016 898 2.22 898 2.22
3 month LIBOR+0.07% FRN due 2016 800 0.31 800 0.31
0.70% Notes due 2016 398 0.74 397 0.74
5.55% Debentures due 2017 1,000 5.55 1,000 5.55
1.125% Notes due 2017 697 1.15 – –
5.15% Debentures due 2018 898 5.15 898 5.15
1.65% Notes due 2018 597 1.70 589 1.70
4.75% Notes due 2019 (1B Euro 1.2199)(2)/(1B Euro 1.3683)(3) 1,216(2) 5.83 1,363(3) 5.83
1.875% Notes due 2019 497 1.93 – –
3% Zero Coupon Convertible Subordinated Debentures due 2020 158 3.00 179 3.00
2.95% Debentures due 2020 543 3.15 542 3.15
3.55% Notes due 2021 446 3.67 446 3.67
2.45% Notes due 2021 349 2.48 – –
6.73% Debentures due 2023 250 6.73 250 6.73
3.375% Notes due 2023 812(5) 3.17 550 3.38
5.50% Notes due 2024 (500MM GBP 1.5542)(2)/(500MM GBP 1.6414)(3) 772(2) 6.75 816(3) 6.75
6.95% Notes due 2029 297 7.14 296 7.14
4.95% Debentures due 2033 500 4.95 500 4.95
4.375% Notes due 2033 865(5) 4.23 646 4.42
5.95% Notes due 2037 995 5.99 995 5.99
5.85% Debentures due 2038 700 5.86 700 5.86
4.50% Debentures due 2040 539 4.63 539 4.63
4.85% Notes due 2041 298 4.89 298 4.89
4.50% Notes due 2043 499 4.52 499 4.52
Other 105 – 147 –
Subtotal 15,129(4) 4.08%(1) 15,097(4) 4.00(1)
Less current portion 7 1,769
Total long-term debt $15,122 13,328
(1) Weighted average effective rate.
(2) Translation rate at December 28, 2014.
(3) Translation rate at December 29, 2013.
(4) The excess of the fair value over the carrying value of debt was $2.2 billion in 2014 and $1.4 billion in 2013.
(5) Includes the reopening of these issues.
Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices
and significant other observable inputs.
The Company has access to substantial sources of funds at numerous banks worldwide. In September 2014, the
Company secured a new 364-day Credit Facility. Total credit available to the Company approximates $10 billion, which
expires on September 17, 2015. Interest charged on borrowings under the credit line agreements is based on either bids
provided by banks, the prime rate or London Interbank Offered Rates (LIBOR), plus applicable margins. Commitment fees
under the agreements are not material.
Johnson & Johnson 2014 Annual Report •35