Johnson & Johnson (JNJ) 10-Q 4 Aug 09 2010 Q2 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Millions, except Share data	6 Months Ended Jun. 28, 2009	Jul. 26, 2009
Document And Company Information [Abstract]
Entity Registrant Name	JOHNSON & JOHNSON
Entity Central Index Key	0000200406
Document Type	10-Q
Document Period End Date	2009-06-28
Amendment Flag	false
Current Fiscal Year End Date	--01-03
Amendment Description	Not Applicable
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Public Float	$155,895
Entity Common Stock, Shares Outstanding		2,755,813,865

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jun. 28, 2009	Dec. 28, 2008
Current assets:
Cash & cash equivalents	$11,686	$10,768
Marketable securities	3,030	2,041
Accounts receivable, trade, less allowances for doubtful accounts $321 (2008,$268)	10,133	9,719
Inventories	5,472	5,052
Deferred taxes on income	2,454	3,430
Prepaid expenses and other receivables	2,719	3,367
Total current assets	35,494	34,377
Marketable securities, non-current	18	4
Property, plant and equipment at cost	28,411	27,392
Less: accumulated depreciation	(13,909)	(13,027)
Property, plant and equipment, net	14,502	14,365
Intangible assets, net	14,720	13,976
Goodwill, net	14,152	13,719
Deferred taxes on income	5,870	5,841
Other assets	2,682	2,630
Total assets	87,438	84,912
Current liabilities:
Loans and notes payable	5,435	3,732
Accounts payable	5,832	7,503
Accrued liabilities	4,765	5,531
Accrued rebates, returns and promotions	2,153	2,237
Accrued salaries, wages and commissions	1,191	1,432
Accrued taxes on income	510	417
Total current liabilities	19,886	20,852
Long-term debt	8,179	8,120
Deferred taxes on income	1,481	1,432
Employee related obligations	7,370	7,791
Other liabilities	4,275	4,206
Total liabilities	41,191	42,401
Shareholders' equity:
Common stock - par value $1.00 per share (authorized 4,320,000,000 shares; issued 3,119,843,000 shares)	3,120	3,120
Accumulated other comprehensive income	(4,481)	(4,955)
Retained earnings	67,408	63,379
Less: common stock held in treasury, at cost (365,502,527 and 350,665,000 shares)	19,800	19,033
Total shareholders' equity	46,247	42,511
Liabilities and Stockholders' Equity, Total	$87,438	$84,912

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Jun. 28, 2009	Dec. 28, 2008
Allowance for doubtful accounts	$321	$268
Preferred stock-without par value - shares authorized	2,000,000	2,000,000
Preferred stock-without par value - shares unissued	2,000,000	2,000,000
Common stock, par value	1	1
Common stock, shares authorized	4,320,000,000	4,320,000,000
Common stock, shares issued	3,119,843,000	3,119,843,000
Treasury stock, shares	365,502,527	350,665,000

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, unless otherwise specified	3 Months Ended Jun. 28, 2009	3 Months Ended Jun. 29, 2008	6 Months Ended Jun. 28, 2009	6 Months Ended Jun. 29, 2008
Sales to customers	$15,239	$16,450	$30,265	$32,644
Cost of products sold	4,450	4,751	8,701	9,365
Gross profit	10,789	11,699	21,564	23,279
Selling, marketing and administrative expenses	4,797	5,507	9,405	10,630
Research expense	1,638	1,896	3,156	3,608
In-process research & development (IPR&D)	0	40	0	40
Interest income	(25)	(89)	(50)	(171)
Interest expense, net of portion capitalized	110	105	216	203
Other (income) expense, net	6	(135)	(69)	(153)
Earnings before provision for taxes on income	4,263	4,375	8,906	9,122
Provision for taxes on income	1,055	1,048	2,191	2,197
NET EARNINGS	$3,208	$3,327	$6,715	$6,925
NET EARNINGS PER SHARE
Basic	1.16	1.18	2.43	2.45
Diluted	1.15	1.17	2.41	2.43
CASH DIVIDENDS PER SHARE	0.49	0.46	0.95	0.875
AVG. SHARES OUTSTANDING
Basic	2756.2	2809.8	2761.3	2821.6
Diluted	2,782	2844.8	2785.5	2856.1

1_Consolidated Statements of Ea

Consolidated Statements of Earnings (Percent To Sales) (USD $)
	3 Months Ended Jun. 28, 2009	3 Months Ended Jun. 29, 2008	6 Months Ended Jun. 28, 2009	6 Months Ended Jun. 29, 2008
Sales to customers	1	1	1	1
Cost of products sold	0.292	0.289	0.287	0.287
Gross profit	0.708	0.711	0.713	0.713
Selling, marketing and administrative expenses	0.315	0.335	0.311	0.326
Research expense	0.107	0.115	0.104	0.111
In-process research & development (IPR&D)	0	0.002	0	0.001
Interest income	-0.001	-0.005	-0.001	-0.005
Interest expense, net of portion capitalized	0.007	0.006	0.007	0.006
Other (income) expense, net	0	-0.008	-0.002	-0.005
Earnings before provision for taxes on income	0.28	0.266	0.294	0.279
Provision for taxes on income	0.069	0.064	0.072	0.067
Net earnings	0.211	0.202	0.222	0.212

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 28, 2009	6 Months Ended Jun. 29, 2008
CASH FLOW FROM OPERATING ACTIVITIES
Net earnings	$6,715	$6,925
Adjustment to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property and intangibles	1,355	1,349
Stock based compensation	341	356
Purchased in-process research and development	0	40
Decrease/(Increase) in deferred tax provision	645	(322)
Accounts receivable allowances	52	15
Changes in assets and liabilities, net of effects from acquisitions:
Increase in accounts receivable	(225)	(732)
Increase in inventories	(339)	(379)
Decrease in accounts payable and accrued liabilities	(1,897)	(1,160)
Increase in other current and non-current asset	(28)	(756)
(Decrease)/Increase in other current and non-current liabilities	(429)	742
NET CASH FLOWS FROM OPERATING ACTIVITIES	6,190	6,078
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment	(1,002)	(1,166)
Proceeds from the disposal of assets	12	47
Acquisitions, net of cash acquired	(1,291)	(46)
Purchases of investments	(3,485)	(687)
Sales of investments	2,471	1,786
Other	(84)	(46)
NET CASH USED BY INVESTING ACTIVITIES	(3,379)	(112)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends to shareholders	(2,623)	(2,466)
Repurchase of common stock	(1,123)	(3,617)
Proceeds from short-term debt	3,082	3,376
Retirement of short-term debt	(1,331)	(837)
Proceeds from long-term debt	9	1,641
Retirement of long-term debt	(16)	(5)
Proceeds from the exercise of stock options/excess tax benefits	74	610
NET CASH USED BY FINANCING ACTIVITIES	(1,928)	(1,298)
Effect of exchange rate changes on cash and cash equivalents	35	208
Increase in cash and cash equivalents	918	4,876
Cash and Cash equivalents, beginning of period	10,768	7,770
CASH AND CASH EQUIVALENTS, END OF PERIOD	11,686	12,646
Acquisitions
Fair value of assets acquired	1,519	51
Fair value of liabilities assumed	(228)	(5)
Net cash paid for acquisitions	$1,291	$46

Summary of Significant Accounti

Summary of Significant Accounting Policies
	6 Months Ended Jun. 28, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of Johnson Johnson and its Subsidiaries (the Company) and related notes as contained in the Companys Annual Report on Form 10-K for the fiscal year ended December28, 2008. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. During the fiscal second quarter of 2009, the Company adopted Statement of Financial Accounting Standards (SFAS)No.165, Subsequent Events. This statement establishes standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. See Note 13 for additional information. During the fiscal first quarter of 2009, the Company adopted SFAS No.141(R), Business Combinations, and No.160, Noncontrolling Interests in Consolidated Financial Statements. These statements aim to improve, simplify, and converge internationally, the accounting for business combinations and the reporting of noncontrolling interests in consolidated financial statements. These statements have a significant impact on the manner in which the Company accounts for acquisitions beginning in the fiscal year 2009. Significant changes include the capitalization of in process research and development (IPRD), expensing of acquisition related restructuring actions and transaction related costs and the recognition of contingent purchase price consideration at fair value at the acquisition date. In addition, changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period will be recognized in earnings rather than as an adjustment to the cost of acquisition. This accounting treatment for taxes is applicable to acquisitions that occurred both prior and subsequent to the adoption of SFAS No.141(R). Noncontrolling interests as related to Johnson Johnsons financial statements are insignificant. The adoption of SFAS No.141(R) and SFAS No.160 did not have a material impact on the Companys results of operations, cash flows or financial position. During the fiscal first quarter of 2009, the Company adopted SFAS Statement No.161, Disclosures About Derivative Instruments and Hedging Activities, to enhance the disclosure regarding the Companys derivative and hedging activities to improve the transparency of financial reporting. The adoption of SFAS No.161 did not have a significant impact on the Companys results of operations, cash flows or financial position. See Note 2 for enhanced disclosures. EITF Issue 07-1: Accounting for Collaborative Arrangements Related to the Development and Commercialization of Intellectual Property. This issue is effective for financial statements issued for fiscal years beginning after December15, 2008 and was adopted by the Company in the fiscal first quarter of 2009. This issue addresses the income statement classification of payments

Financial Instruments

Financial Instruments
	6 Months Ended Jun. 28, 2009 USD / shares
Financial Instruments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 2 FINANCIAL INSTRUMENTS During the fiscal first quarter of 2009, the Company adopted SFAS No.161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS Statement No.133. SFAS No.161 requires enhanced disclosures about the Companys derivative and hedging activities. SFAS No.161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gain and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The Company uses forward exchange contracts to manage its exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of future intercompany product and third- party purchases of raw materials denominated in foreign currency. The Company also uses cross currency interest rate swaps to manage currency risk primarily related to borrowings. Both types of derivatives are designated as cash flow hedges. The Company also uses forward exchange contracts to manage its exposure to the variability of cash flows for repatriation of foreign dividends. These contracts are designated as net investment hedges. Additionally, the Company uses forward exchange contracts to offset its exposure to certain foreign currency assets and liabilities. These forward exchange contracts are not designated as hedges and therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting current earnings effect of the related foreign currency assets and liabilities. The Company does not enter into derivative financial instruments for trading or speculative purposes, or contain credit risk related contingent features or requirements to post collateral. On an ongoing basis the Company monitors counterparty credit ratings. The Company considers credit non-performance risk to be low, because the Company enters into agreements with commercial institutions that have at least an A (or equivalent) credit rating. As of June28, 2009, the Company had notional amounts outstanding for forward foreign exchange contracts and cross currency interest rate swaps of $20billion and $4 billion, respectively. The Company follows the provisions of SFAS No.133, Accounting for Derivative Instruments and Hedging Activities, as amended. SFAS No.133 requires that all derivative instruments be recorded on the balance sheet at fair value. Changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction. The designation as a cash flow hedge is made at the entrance date into the derivative contract. At inception, all derivatives are expected to be highly effective. Changes in the fair value of a derivative that is designated as a cash flow hedge and is highly effective are recorded in accumulated other comprehensive income until the underlying transaction affects earnings, and are then reclassified to earnings in the same account as the hedged transaction. Gains

Income Taxes

Income Taxes
	6 Months Ended Jun. 28, 2009 USD / shares
Income Taxes [Abstract]
INCOME TAXES	NOTE 3 INCOME TAXES The worldwide effective income tax rates for the first fiscal six months of 2009 and 2008 were 24.6% and 24.1%, respectively. The increase in the effective tax rate was primarily due to a decline in taxable income in lower tax jurisdictions relative to taxable income in higher tax jurisdictions partially offset by the U.S. Research and Development tax credit which was not in effect in the first fiscal six months of 2008.

Inventories

Inventories
	6 Months Ended Jun. 28, 2009 USD / shares
Inventories [Abstract]
INVENTORIES	NOTE 4 INVENTORIES (Dollars in Millions) June 28, 2009 December 28, 2008 Raw materials and supplies $ 948 $ 839 Goods in process 1,613 1,372 Finished goods 2,911 2,841 Total $ 5,472 $ 5,052

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	6 Months Ended Jun. 28, 2009 USD / shares
Intangible Assets and Goodwill [Abstract]
INTANGIBLE ASSETS AND GOODWILL	NOTE 5 INTANGIBLE ASSETS AND GOODWILL Intangible assets that have finite useful lives are amortized over their estimated useful lives. The latest impairment assessment of goodwill and indefinite lived intangible assets was completed in the fiscal fourth quarter of 2008. Future impairment tests for goodwill and indefinite lived intangible assets will be performed annually in the fiscal fourth quarter, or sooner if warranted. (Dollars in Millions) June 28, 2009 December 28, 2008 Trademarks (non-amortizable)- gross $ 5,912 $ 5,879 Less accumulated amortization 145 145 Trademarks (non-amortizable)- net 5,767 5,734 Patents and trademarks gross 5,553 5,119 Less accumulated amortization 1,968 1,820 Patents and trademarks net 3,585 3,299 Other amortizable intangibles gross 7,945 7,376 Less accumulated amortization 2,595 2,433 Other intangibles net 5,350 4,943 Purchased in process research and development(non-amortizable)- gross* 18 Total intangible assets gross 19,428 18,374 Less accumulated amortization 4,708 4,398 Total intangible assets net $ 14,720 $ 13,976 * Purchased in process research and development was capitalized as per the adoption of SFAS No. 141(R). Amortization will begin upon commercialization. Goodwill as of June28, 2009 was allocated by segment of business as follows: Med Dev (Dollars in Millions) Consumer Pharm Diag Total Goodwill, net at December28, 2008 $7,474 $963 $5,282 $13,719 Acquisitions 376 376 Translation Other** 215 (2 ) (156 ) 57 Goodwill, net as of June28, 2009 $7,689 $961 $5,502 $14,152 ** Includes reclassification between segments, currency translation and other adjustments. The weighted average amortization periods for patents and trademarks and other intangible assets are 16years and 28years, respectively. The amortization expense of amortizable intangible assets for the fiscal six months ended June28, 2009 was $365million, and the estimated amortization expense for the five succeeding years approximates $775million, per year.

Segments of Business and Geogra

Segments of Business and Geographic Areas
	6 Months Ended Jun. 28, 2009 USD / shares
Segments of Business and Geographic Areas [Abstract]
SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS	NOTE 6 SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS (Dollars in Millions) SALES BY SEGMENT OF BUSINESS (1) Fiscal Quarters Ended June 28, June 29, Percent (Dollars in Millions) 2009 2008 Change Consumer U.S. $ 1,708 $ 1,694 0.8 % International 2,146 2,342 (8.4 ) Total 3,854 4,036 (4.5 ) Pharmaceutical U.S. 3,172 3,793 (16.4 ) International 2,326 2,547 (8.7 ) Total 5,498 6,340 (13.3 ) Medical Devices Diagnostics U.S. 2,776 2,723 1.9 International 3,111 3,351 (7.2 ) Total 5,887 6,074 (3.1 ) Worldwide U.S. 7,656 8,210 (6.7 ) International 7,583 8,240 (8.0 ) Total $ 15,239 $ 16,450 (7.4 )% Fiscal Six Months Ended June 28, June 29, Percent (Dollars in Millions) 2009 2008 Change Consumer U.S. $ 3,434 $ 3,513 (2.2 )% International 4,131 4,587 (9.9 ) Total 7,565 8,100 (6.6 ) Pharmaceutical U.S. 6,846 7,863 (12.9 ) International 4,432 4,906 (9.7 ) Total 11,278 12,769 (11.7 ) Medical Devices Diagnostics U.S. 5,428 5,311 2.2 International 5,994 6,464 (7.3 ) Total 11,422 11,775 (3.0 ) Worldwide U.S. 15,708 16,687 (5.9 ) International 14,557 15,957 (8.8 ) Total $ 30,265 $ 32,644 (7.3 )% (1) Export sales are not significant. OPERATING PROFIT BY SEGMENT OF BUSINESS Fiscal Quarters Ended June 28, June 29, Percent (Dollars in Millions) 2009 2008 Change Consumer $ 695 $ 683 1.8 % Pharmaceutical 1,701 2,143 (20.6 ) Medical Devices Diagnostics (2) 2,088 1,702 22.7 Segments total 4,484 4,528 (1.0 ) Expense not allocated to segments (3) (221 ) (153 ) Worldwide total $ 4,263 $ 4,375 (2.6 )% Fiscal Six Months Ended June 28, June 29, Percent (Dollars in Millions) 2009 2008 Change Consumer $ 1,495 $ 1,411 6.0 % Pharmaceutical 3,958 4,510 (12.2 ) Medical Devices Diagnostics (2) 3,875 3,502 10.7 Segments total 9,328 9,423 (1.0 ) Expense not allocated to segments (3) (422 ) (301 ) Worldwide total $ 8,906 $ 9,122 (2.4 )% (2) Includes $40million of in-process research and development (IPRD) charges related to the acquisition of Amic AB completed in the fisc

Earnings Per Share

Earnings Per Share
	6 Months Ended Jun. 28, 2009 USD / shares
Earnings Per Share Disclosure [Abstract]
EARNINGS PER SHARE	NOTE 7 EARNINGS PER SHARE The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal second quarters ended June28, 2009 and June29, 2008. Fiscal Quarters Ended June 28, June 29, (Shares in Millions) 2009 2008 Basic net earnings per share $ 1.16 $ 1.18 Average shares outstanding basic 2,756.2 2,809.8 Potential shares exercisable under stock option plans 80.8 197.4 Less: shares which could be repurchased under treasury stock method (58.6 ) (166.1 ) Convertible debt shares 3.6 3.7 Average shares outstanding diluted 2,782.0 2,844.8 Diluted earnings per share $ 1.15 $ 1.17 The diluted earnings per share calculation for the fiscal second quarters ended June28, 2009 and June29, 2008 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted earnings per share calculation for the fiscal second quarters ended June28, 2009 and June29, 2008 excluded 178million shares and 61million shares, respectively, related to stock options, as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share. The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal six months ended June28, 2009 and June29, 2008. Fiscal Six Months Ended June 28, June 29, (Shares in Millions) 2009 2008 Basic net earnings per share $ 2.43 $ 2.45 Average shares outstanding basic 2,761.3 2,821.6 Potential shares exercisable under stock option plans 108.4 197.4 Less: shares which could be repurchased under treasury stock method (87.8 ) (166.6 ) Convertible debt shares 3.6 3.7 Average shares outstanding diluted 2,785.5 2,856.1 Diluted earnings per share $ 2.41 $ 2.43 The diluted earnings per share calculation for both the fiscal six months ended June28, 2009 and June29, 2008 included the dilutive effect of convertible debt that was offset by the related reduction in interest expense. The diluted earnings per share calculation for the fiscal six months ended June28, 2009 and June 29, 2008, excluded 151million shares and 61million shares, respectively, related to stock options as the exercise price of these options was greater than their average market value, which would result in an anti-dilutive effect on diluted earnings per share.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	6 Months Ended Jun. 28, 2009 USD / shares
Accumulated Other Comprehensive Income [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 8 ACCUMULATED OTHER COMPREHENSIVE INCOME Total comprehensive income for the first fiscal six months ended June28, 2009 was $7.2billion, compared with $8.2billion for the same period a year ago. Total comprehensive income for the fiscal second quarter ended June28, 2009 was $3.9billion, compared with $3.4billion for the same period a year ago. Total comprehensive income included net earnings, net unrealized currency gains and losses on translation, adjustments related to Employee Benefit Plans, net unrealized gains and losses on securities available for sale and net gains and losses on derivative instruments qualifying and designated as cash flow hedges. The following table sets forth the components of accumulated other comprehensive income. Total Unrld Gains/ Accum For. Gains/ Employee (Losses) Other Comp Cur. (Losses) Benefit on Deriv Inc/ (Dollars in Millions) Trans. on Sec Plans Hedges (Loss) December28, 2008 $ (1,871 ) 25 (3,230 ) 121 (4,955 ) 2009 six months change Net change associated with current period hedging transactions 138 Net amount reclassed to net earnings (51) * Net six months change 410 2 (25 ) 87 474 June28, 2009 $ (1,461 ) 27 (3,255 ) 208 (4,481 ) * Substantially offset in net earnings by changes in value of the underlying transactions. Amounts in accumulated other comprehensive income are presented net of the related tax impact. Foreign currency translation adjustments are not currently adjusted for income taxes as they relate to permanent investments in international subsidiaries.

Mergers, Acquisitions and Dives

Mergers, Acquisitions and Divestitures
	6 Months Ended Jun. 28, 2009 USD / shares
Mergers Acquisitions and Divestitures [Abstract]
MERGERS, ACQUISITIONS AND DIVESTITURES	NOTE 9 MERGERS, ACQUISITIONS AND DIVESTITURES During the fiscal second quarter of 2009, there were no significant acquisitions or divestitures. During the fiscal first quarter of 2009, the Company acquired Mentor Corporation, a leading supplier of medical products for the global aesthetic market, for a net purchase price of $1.1 billion. The purchase price for the acquisition was allocated primarily to amortizable intangible assets for $0.9billion and goodwill for $0.4billion. During the fiscal second quarter of 2008 the Company acquired Amic AB for a purchase price of $44 million in cash and debt. Amic AB is a Swedish developer of in vitro diagnostic technologies for use in point-of-care and near-patient settings (outside the physical facilities of the clinical laboratory). An in-process research development (IPRD) charge of $40million before and after tax was recorded related to the acquisition of Amic AB.

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits
	6 Months Ended Jun. 28, 2009 USD / shares
Pensions and Other Postretirement Benefits [Abstract]
PENSIONS AND OTHER POSTRETIREMENT BENEFITS	NOTE 10 PENSIONS AND OTHER POSTRETIREMENT BENEFITS Components of Net Periodic Benefit Cost Net periodic benefit cost for the Companys defined benefit retirement plans and other benefit plans for the fiscal second quarters of 2009 and 2008 include the following components: Retirement Plans Other Benefit Plans Fiscal Quarters Ended June 28, June 29, June 28, June 29, (Dollars in Millions) 2009 2008 2009 2008 Service cost $ 116 126 36 35 Interest cost 182 178 42 42 Expected return on plan assets (227 ) (222 ) Amortization of prior service cost 3 3 (1 ) (2 ) Amortization of net transition asset 1 1 Recognized actuarial losses 41 16 14 17 Net periodic benefit cost $ 116 102 91 92 Net periodic benefit cost for the Companys defined benefit retirement plans and other benefit plans for the first fiscal six months of 2009 and 2008 include the following components: Retirement Plans Other Benefit Plans Fiscal Six Months Ended June 28, June 29, June 28, June 29, (Dollars in Millions) 2009 2008 2009 2008 Service cost $ 234 255 70 71 Interest cost 367 357 85 83 Expected return on plan assets (455 ) (446 ) (1 ) (1 ) Amortization of prior service cost 5 6 (2 ) (3 ) Amortization of net transition asset 1 1 Recognized actuarial losses 82 35 28 33 Net periodic benefit cost $ 234 208 180 183 Company Contributions For the fiscal six months ended June28, 2009, the Company contributed $568million and $13million to its U.S. and international retirement plans, respectively. In 2006, Congress passed the Pension Protection Act of 2006. The Act amended the Employee Retirement Income Security Act (ERISA)for plan years beginning after 2007 and established new minimum funding standards for U.S. employer defined benefit plans. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations.

Restructuring

Restructuring
	6 Months Ended Jun. 28, 2009 USD / shares
Restructuring [Abstract]
RESTRUCTURING	NOTE 11 RESTRUCTURING In the third quarter of 2007, the Company announced restructuring initiatives in an effort to improve its overall cost structure. This action was taken to offset the anticipated negative impacts associated with generic competition in the Pharmaceutical segment and challenges in the drug-eluting stent market. The Companys Pharmaceuticals segment has reduced its cost base by consolidating certain operations, while continuing to invest in recently launched products and its late-stage pipeline of new products. The Cordis franchise has moved to a more integrated business model to address the market changes underway with drug-eluting stents and to better serve the broad spectrum of its patients cardiovascular needs, while reducing its cost base. This program allowed the Company to accelerate steps to standardize and streamline certain aspects of its enterprise-wide functions such as human resources, finance and information technology to support growth across the business, while also leveraging its scale more effectively in areas such as procurement to benefit its operating companies. Additionally, as part of this initiative, the Company planned to eliminate approximately 4,400 positions of which 4,100 have been eliminated since this restructuring initiative was announced in 2007. During the fiscal third quarter of 2007, the Company recorded $745million in pre-tax charges of which, approximately, $500million of the pre-tax restructuring charges are expected to require cash payments. The $745million of restructuring charges included severance costs of $450 million, asset write-offs of $272million and $23million related to leasehold obligations. The $272million of asset write-offs relate to property, plant and equipment of $166million, intangible assets of $48million and other assets of $58million. The following table summarizes the severance reserve and the associated spending under this initiative through the second quarter of 2009: (Dollars in Millions) Severance Reserve balance as of: December28, 2008 $ 178 Cash outlays (81 ) June28, 2009* $ 97 * Substantially all cash payments related to the remaining reserve balance for severance is expected to be paid out over the remainder of the year in accordance with the Companys plans and local laws.

Legal Proceedings

Legal Proceedings
	6 Months Ended Jun. 28, 2009 USD / shares
Legal Proceedings Disclosure [Abstract]
LEGAL PROCEEDINGS	NOTE 12 LEGAL PROCEEDINGS PRODUCT LIABILITY The Companys subsidiaries are involved in numerous product liability cases in the United States, many of which concern alleged adverse reactions to drugs and medical devices. The damages claimed are substantial, and while the Company is confident of the adequacy of the warnings and instructions for use that accompany such products, it is not feasible to predict the ultimate outcome of litigation. However, the Company believes that if any product liability results from such cases, it will be substantially covered by existing amounts accrued in the Companys balance sheet and, where available, by third-party product liability insurance. Multiple products of Johnson Johnson subsidiaries are subject to numerous product liability claims and lawsuits, including ORTHO EVRA, RISPERDAL, DURAGESIC, LEVAQUIN, the CYPHER Stent and the CHARIT Artificial Disc. There are approximately 565 claimants who have pending lawsuits or claims regarding injuries allegedly due to ORTHO EVRA, 452 with respect to RISPERDAL, 279 with respect to CHARIT, 152 with respect to LEVAQUIN 101 with respect to DURAGESIC and 56 with respect to CYPHER. These claimants seek substantial compensatory and, where available, punitive damages. With respect to RISPERDAL, the Attorneys General of eight states and the Office of General Counsel of the Commonwealth of Pennsylvania have filed actions seeking reimbursement of Medicaid or other public funds for RISPERDAL prescriptions written for off-label use, compensation for treating their citizens for alleged adverse reactions to RISPERDAL, civil fines or penalties, punitive damages, or other relief. The Attorney General of Texas has joined a qui tam action in that state seeking similar relief. Certain of these actions also seek injunctive relief relating to the promotion of RISPERDAL. The Attorneys General of more than 40 other states have indicated a potential interest in pursuing similar litigation against the Companys Janssen subsidiary (now Ortho-McNeil-Janssen Pharmaceuticals Inc.) (OMJPI), and have obtained a tolling agreement staying the running of the statute of limitations while they inquire into the issues. In addition, there are six cases filed by union health plans seeking damages for alleged overpayments for RISPERDAL, several of which seek certification as class actions. In the case brought by the Attorney General of West Virginia, based on claims for alleged consumer fraud as to DURAGESIC as well as RISPERDAL, Janssen (now OMJPI) was found liable and damages were assessed at $4.5million. OMJPI intends to appeal. Numerous claims and lawsuits in the United States relating to the drug PROPULSID, withdrawn from general sale by the Companys Janssen (now OMJPI) subsidiary in 2000, have been resolved or are currently enrolled in settlement programs with an aggregate cap below $100million. Litigation concerning PROPULSID is pending in Canada, where a class action of persons alleging adverse reactions to the drug has been certified. AFFIRMATIVE STENT PATENT LITIGATION In patent infringement actions tried in Delaware Federal District Court in late 2000, Cordis Corpora

Subsequent Events

Subsequent Events
	6 Months Ended Jun. 28, 2009 USD / shares
Subsequent Events [Abstract]
Subsequent Events	NOTE 13 SUBSEQUENT EVENTS On July2, 2009 the Company announced a definitive agreement with Elan Corporation to acquire substantially all of the assets and rights of Elans Alzheimers Immunotherapy Program through a newly formed company, of which a wholly owned subsidiary of Johnson Johnson will own 50.1% and Elan will own 49.9%. In addition, Johnson Johnson, through its affiliate, will invest $1.0 billion in Elan in exchange for newly issued American Depositary Receipts (ADRs) of Elan which will represent 18.4% of Elans outstanding ordinary shares. On July9, 2009 the Company completed the acquisition of Cougar Biotechnology Inc., a development stage biopharmaceutical company with specific focus on oncology, for approximately $1.0billion. The Company has performed an evaluation of subsequent events through August4, 2009, the date the Company issued these financial statements.