Johnson & Johnson (JNJ) 10-K 1 Mar 10 2010 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Jan. 03, 2010	Feb. 08, 2010	Jun. 28, 2009
Document and Company Information [Abstract]
Entity Registrant Name	JOHNSON & JOHNSON
Entity Central Index Key	0000200406
Document Type	10-K
Document Period End Date	2010-01-03
Amendment Flag	false
Current Fiscal Year End Date	--01-03
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$156
Entity Common Stock, Shares Outstanding		2,751,927,062

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Jan. 03, 2010	Dec. 28, 2008
Current assets
Cash and cash equivalents (Notes 1 and 2)	$15,810	$10,768
Marketable securities (Notes 1 and 2)	3,615	2,041
Accounts receivable trade, less allowances for doubtful accounts $333 (2008,$268)	9,646	9,719
Inventories (Notes 1 and 3)	5,180	5,052
Deferred taxes on income (Note 8)	2,793	3,430
Prepaid expenses and other receivables	2,497	3,367
Total current assets	39,541	34,377
Property, plant and equipment, net (Notes 1 and 4)	14,759	14,365
Intangible assets, net (Notes 1 and 5)	16,323	13,976
Goodwill (Notes 1 and 5)	14,862	13,719
Deferred taxes on income (Note 8)	5,507	5,841
Other assets	3,690	2,634
Total assets	94,682	84,912
Current liabilities
Loans and notes payable (Note 7)	6,318	3,732
Accounts payable	5,541	7,503
Accrued liabilities	5,796	5,531
Accrued rebates, returns and promotions	2,028	2,237
Accrued salaries, wages and commissions	1,606	1,432
Accrued taxes on income	442	417
Total current liabilities	21,731	20,852
Long-term debt (Note 7)	8,223	8,120
Deferred taxes on income (Note 8)	1,424	1,432
Employee related obligations (Notes 9 and 10)	6,769	7,791
Other liabilities	5,947	4,206
Total liabilities	44,094	42,401
Shareholders' equity
Preferred stock - without par value (authorized and unissued 2,000,000 shares)	0	0
Common stock - par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares)	3,120	3,120
Accumulated other comprehensive income (Note 13)	(3,058)	(4,955)
Retained earnings	70,306	63,379
Shareholders' equity before deduction of treasury stock	70,368	61,544
Less: common stock held in treasury, at cost (Note 12) (365,522,000 and 350,665,000)	19,780	19,033
Total shareholders' equity	50,588	42,511
Total liabilities and shareholders' equity	$94,682	$84,912

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Jan. 03, 2010	Dec. 28, 2008
Current assets
Allowances for doubtful accounts	$333	$268
Shareholders' equity
Preferred stock, no par value	0	0
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, 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	365,522,000	350,665,000

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data	12 Months Ended Jan. 03, 2010	12 Months Ended Dec. 28, 2008	12 Months Ended Dec. 30, 2007
Statements of Earnings [Abstract]
Sales to customers	$61,897	$63,747	$61,095
Cost of products sold	18,447	18,511	17,751
Gross profit	43,450	45,236	43,344
Selling, marketing and administrative expenses	19,801	21,490	20,451
Research expense	6,986	7,577	7,680
Purchased in-process research and development (Note 20)	0	181	807
Interest income	(90)	(361)	(452)
Interest expense, net of portion capitalized (Note 4)	451	435	296
Other (income) expense, net	(526)	(1,015)	534
Restructuring (Note 22)	1,073	0	745
Earnings before provision for taxes on income	15,755	16,929	13,283
Provision for taxes on income (Note 8)	3,489	3,980	2,707
Net earnings	$12,266	$12,949	$10,576
Basic net earnings per share (Notes 1 and 15)	4.45	4.62	3.67
Diluted net earnings per share (Notes 1 and 15)	4.4	4.57	3.63
Cash dividends per share	1.93	1.795	1.62
Basic average shares outstanding (Notes 1 and 15)	2759.5	2802.5	2882.9
Diluted average shares outstanding (Notes 1 and 15)	2789.1	2835.6	2910.7

Consolidated Statements of Equi

Consolidated Statements of Equity (USD $)
In Millions	12 Months Ended Jan. 03, 2010	12 Months Ended Dec. 28, 2008	12 Months Ended Dec. 30, 2007
Beginning Balance	$42,511	$43,319	$39,318
Net earnings	12,266	12,949	10,576
Cash dividends paid	(5,327)	(5,024)	(4,670)
Employee compensation and stock option plans	1,402	2,180	2,311
Conversion of subordinated debentures	2	0	9
Repurchase of common stock	(2,130)	(6,651)	(5,607)
Adoption of FIN 48			(19)
Other	(33)		(24)
Currency translation adjustment	1,363	(2,499)	786
Unrealized (losses) gains on securities	(55)	(59)	23
Employee benefit plans	565	(1,870)	670
Gains/(Losses) on derivatives & hedges	24	166	(54)
Ending Balance	50,588	42,511	43,319
Retained Earnings
Beginning Balance	63,379	55,280	49,290
Net earnings	12,266	12,949	10,576
Cash dividends paid	(5,327)	(5,024)	(4,670)
Employee compensation and stock option plans	25	175	131
Conversion of subordinated debentures	(4)	(1)	(4)
Adoption of FIN 48			(19)
Other	(33)		(24)
Ending Balance	70,306	63,379	55,280
Accumulated Other Comprehensive Income
Beginning Balance	(4,955)	(693)	(2,118)
Currency translation adjustment	1,363	(2,499)	786
Unrealized (losses) gains on securities	(55)	(59)	23
Employee benefit plans	565	(1,870)	670
Gains/(Losses) on derivatives & hedges	24	166	(54)
Ending Balance	(3,058)	(4,955)	(693)
Common Stock Issued Amount
Beginning Balance	3,120	3,120	3,120
Ending Balance	3,120	3,120	3,120
Treasury Stock Amount
Beginning Balance	(19,033)	(14,388)	(10,974)
Employee compensation and stock option plans	1,377	2,005	2,180
Conversion of subordinated debentures	6	1	13
Repurchase of common stock	(2,130)	(6,651)	(5,607)
Ending Balance	(19,780)	(19,033)	(14,388)
Comprehensive Income
Net earnings	12,266	12,949	10,576
Currency translation adjustment	1,363	(2,499)	786
Unrealized (losses) gains on securities	(55)	(59)	23
Employee benefit plans	565	(1,870)	670
Gains/(Losses) on derivatives & hedges	24	166	(54)
Reclassification adjustment		(27)	(5)
Total comprehensive income	$14,163	$8,660	$11,996

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Jan. 03, 2010	12 Months Ended Dec. 28, 2008	12 Months Ended Dec. 30, 2007
Cash flows from operating activities
Net earnings	$12,266	$12,949	$10,576
Adjustments to reconcile net earnings to cash flows from operating activities:
Depreciation and amortization of property and intangibles	2,774	2,832	2,777
Stock based compensation	628	627	698
Purchased in-process research and development	0	181	807
Intangible asset write-down (NATRECOR)	0	0	678
Deferred tax provision	(436)	22	(1,762)
Accounts receivable allowances	58	86	22
Changes in assets and liabilities, net of effects from acquisitions:
Decrease/(increase) in accounts receivable	453	(736)	(416)
Decrease/(increase) in inventories	95	(101)	14
(Decrease)/increase in accounts payable and accrued liabilities	(507)	(272)	2,642
Decrease/(increase) in other current and non-current assets	1,209	(1,600)	(1,578)
Increase in other current and non-current liabilities	31	984	564
Net cash flows from operating activities	16,571	14,972	15,022
Cash flows from investing activities
Additions to property, plant and equipment	(2,365)	(3,066)	(2,942)
Proceeds from the disposal of assets	154	785	457
Acquisitions, net of cash acquired (Note 20)	(2,470)	(1,214)	(1,388)
Purchases of investments	(10,040)	(3,668)	(9,659)
Sales of investments	7,232	3,059	7,988
Other (primarily intangibles)	(109)	(83)	(368)
Net cash used by investing activities	(7,598)	(4,187)	(5,912)
Cash flows from financing activities
Dividends to shareholders	(5,327)	(5,024)	(4,670)
Repurchase of common stock	(2,130)	(6,651)	(5,607)
Proceeds from short-term debt	9,484	8,430	19,626
Retirement of short-term debt	(6,791)	(7,319)	(21,691)
Proceeds from long-term debt	9	1,638	5,100
Retirement of long-term debt	(219)	(24)	(18)
Proceeds from the exercise of stock options/excess tax benefits	882	1,486	1,562
Net cash used by financing activities	(4,092)	(7,464)	(5,698)
Effect of exchange rate changes on cash and cash equivalents	161	(323)	275
Increase in cash and cash equivalents	5,042	2,998	3,687
Cash and cash equivalents, beginning of year (Note 1)	10,768	7,770	4,083
Cash and cash equivalents, end of year (Note 1)	15,810	10,768	7,770
Cash paid during the year for:
Interest	533	525	314
Income taxes	2,363	4,068	4,099
Supplemental schedule of noncash investing and financing activities
Treasury stock issued for employee compensation and stock option plans, net of cash proceeds	541	593	738
Conversion of debt	2	0	9
Acquisitions
Fair value of assets acquired	3,345	1,328	1,620
Fair value of liabilities assumed and non-controlling interests	(875)	(114)	(232)
Net cash paid for acquisitions	$2,470	$1,214	$1,388

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Jan. 03, 2010 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Johnson Johnson and subsidiaries (the Company). Inter-company accounts and transactions are eliminated. DESCRIPTION OF THE COMPANY AND BUSINESS SEGMENTS The Company has approximately 115,500 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the health care field. The Company conducts business in virtually all countries of the world and its primary focus is on products related to human health and well-being. The Company is organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. The Consumer segment manufactures and markets a broad range of products used in the baby care, skin care, oral care, wound care and womens health care fields, as well as nutritional and over-the-counter pharmaceutical products. These products are marketed to the general public and sold both to retail outlets and distributors throughout the world. The Pharmaceutical segment includes products in the following therapeutic areas: anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. These products are distributed directly to retailers, wholesalers and health care professionals for prescription use. The Medical Devices and Diagnostics segment includes a broad range of products used principally in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. These products include Cordis circulatory disease management products; DePuys orthopaedic joint reconstruction, spinal care and sports medicine products; Ethicons surgical care, aesthetics and womens health products; Ethicon Endo-Surgerys minimally invasive surgical products; LifeScans blood glucose monitoring and insulin delivery products; Ortho-Clinical Diagnostics professional diagnostic products and Vistakons disposable contact lenses. NEW ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS During the fiscal fourth quarter of 2009, in accordance with U.S. GAAP, the Company adopted the authoritative guidance for employers disclosures about postretirement benefit plan assets to enhance the disclosure regarding the types of assets and associated risks in an employers defined benefit pension or other postretirement plan, as well as, events in the economy and markets that could have a significant effect on the value of the plan assets. The adoption of this standard did not have a material impact on the Companys results of operations, cash flows or financial position. See Note 10 for enhanced disclosures. During the fiscal third quarter of 2009, the Company adopted The FASB Accounting Standards CodificationTM (ASC or Codification) and the Hierarchy of Generally Accepted Accounting Principles (GAAP) which establishes the Codification as the sole source for authoritative U.S. GAAP and will supersede all accounting standards in U.S. GAAP, aside from those issued by the SEC.

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities
	12 Months Ended Jan. 03, 2010 USD / shares
Cash, Cash Equivalents and Current Marketable Securities [Abstract]
Cash, Cash Equivalents and Current Marketable Securities	2. Cash, Cash Equivalents and Current Marketable Securities January 3, 2010 December 28, 2008 Amortized Unrealized Estimated Amortized Unrealized Estimated (Dollars in Millions) Cost Gains/(Losses) Fair Value Cost Gains/(Losses) Fair Value Current Investments Cash $ 2,517 2,517 3,276 3,276 Government securities and obligations 13,370 1 13,371 7,486 4 7,490 Corporate debt securities 426 426 627 1 628 Money market funds 1,890 1,890 813 813 Time deposits 1,222 1,222 607 607 Total cash, cash equivalents and current marketable securities $ 19,425 1 19,426 12,809 5 12,814 As of January3, 2010, current marketable securities consist of $3,434million and $181million of government securities and obligations and corporate debt securities, respectively. As of December28, 2008, current marketable securities consist of $1,663million, $342million and $36million of government securities and obligations, corporate debt securities and time deposits, respectively. Fair value of government securities and obligations and corporate debt securities were estimated using quoted broker prices in active markets. The Company invests its excess cash in both deposits with major banks throughout the world and other high-quality money market instruments. The Company has a policy of making investments only with commercial institutions that have at least an A (or equivalent) credit rating.

Inventories

Inventories
	12 Months Ended Jan. 03, 2010 USD / shares
Inventories [Abstract]
Inventories	3. Inventories At the end of 2009 and 2008, inventories were comprised of: (Dollars in Millions) 2009 2008 Raw materials and supplies $ 1,144 839 Goods in process 1,395 1,372 Finished goods 2,641 2,841 $ 5,180 5,052

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Jan. 03, 2010 USD / shares
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment At the end of 2009 and 2008, property, plant and equipment at cost and accumulated depreciation were: (Dollars in Millions) 2009 2008 Land and land improvements $ 714 886 Buildings and building equipment 8,863 7,720 Machinery and equipment 17,153 15,234 Construction in progress 2,521 3,552 29,251 27,392 Less accumulated depreciation 14,492 13,027 $ 14,759 14,365 The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2009, 2008 and 2007 was $101million, $147million and $130million, respectively. Depreciation expense, including the amortization of capitalized interest in 2009, 2008 and 2007, was $2.1billion, $2.0billion and $1.9billion, 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.

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	12 Months Ended Jan. 03, 2010 USD / shares
Intangible Assets and Goodwill [Abstract]
Intangible Assets and Goodwill	5. Intangible Assets and Goodwill At the end of 2009 and 2008, the gross and net amounts of intangible assets were: (Dollars in Millions) 2009 2008 Intangible assets with definite lives: Patents and trademarks gross $ 5,697 5,119 Less accumulated amortization 2,177 1,820 Patents and trademarks net $ 3,520 3,299 Other intangibles gross $ 7,808 7,376 Less accumulated amortization 2,680 2,433 Other intangibles net $ 5,128 4,943 Total intangible assets with definite lives gross $ 13,505 12,495 Less accumulated amortization 4,857 4,253 Total intangible assets with definite lives net $ 8,648 8,242 Intangible assets with indefinite lives: Trademarks $ 5,938 5,734 Purchased in-process research and development* 1,737 Total intangible assets with indefinite lives $ 7,675 5,734 Total intangible assets net $ 16,323 13,976 * Purchased in-process research and development will be accounted for as an indefinite-lived intangible asset until the underlying project is completed or abandoned. Goodwill as of January3, 2010 and December28, 2008, as allocated by segment of business is as follows: Med Dev (Dollars in Millions) Consumer Pharm and Diag Total Goodwill at December30, 2007 $ 8,125 964 5,034 14,123 Acquisitions 191 286 477 Currency translation/other (842 ) (1 ) (38 ) (881 ) Goodwill at December28, 2008 $ 7,474 963 5,282 13,719 Acquisitions 271 401 672 Currency translation/other* 600 10 (139 ) 471 Goodwill at January3, 2010 $ 8,074 1,244 5,544 14,862 * Includes reclassification between segments. The weighted average amortization periods for patents and trademarks and other intangible assets are 17years and 28years, respectively. The amortization expense of amortizable assets for the fiscal years ended January3, 2010, December28, 2008 and December30, 2007 was $675million, $788million and $844million before tax, respectively. Certain patents and intangible assets were written down to fair value during fiscal years 2009, 2008 and 2007, with the resulting charge included in amortization expense. The estimated amortization expense for the five succeeding years approximates $700million before tax, per year. Substantially all of the amortization expense is included in cost of products sold.

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Jan. 03, 2010 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	6. Fair Value Measurements During the fiscal first quarter of 2009, in accordance with U.S. GAAP the Company adopted the standard related to disclosures about derivative instruments and hedging activities. This standard 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 the 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 January3, 2010, the Company had notional amounts outstanding for forward foreign exchange contracts and cross currency interest rate swaps of $21billion and $4 billion, respectively. As required by U.S. GAAP for derivative instruments and hedging activities, all derivative instruments are to 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/losses on net investment hedges are accounted for through the currency translation account and are insignificant. On an ongoing basis, the Company assesses wheth

Borrowings

Borrowings
	12 Months Ended Jan. 03, 2010 USD / shares
Borrowings [Abstract]
Borrowings	7. Borrowings The components of long-term debt are as follows: Effective Effective (Dollars in Millions) 2009 Rate % 2008 Rate % 6.625% Notes due 2009 199 6.80 5.15% Debentures due 2012 $ 599 5.18 % 599 5.18 3.80% Debentures due 2013 500 3.82 500 3.82 5.55% Debentures due 2017 1,000 5.55 1,000 5.55 5.15% Debentures due 2018 898 5.15 898 5.15 4.75% Notes due 2019 (1B Euro 1.4382)(2)/(1B Euro 1.4000)(3) 1,429 (2) 5.35 1,390 (3) 5.35 3% Zero Coupon Convertible Subordinated Debentures due 2020 188 3.00 183 3.00 6.73% Debentures due 2023 250 6.73 250 6.73 5.50% Notes due 2024 (500MM GBP1.6189)(2)/(500MM GBP1.4759)(3) 803 (2) 5.71 731 (3) 5.71 6.95% Notes due 2029 294 7.14 294 7.14 4.95% Debenture due 2033 500 4.95 500 4.95 5.95% Notes due 2037 995 5.99 995 5.99 5.86% Debentures due 2038 700 5.86 700 5.86 Other (Includes Industrial Revenue Bonds) 101 102 8,257 (4) 5.42 (1) 8,341 (4) 5.46 (1) Less current portion 34 221 $ 8,223 8,120 (1) Weighted average effective rate. (2) Translation rate at January3, 2010. (3) Translation rate at December28, 2008. (4) The excess of the fair value over the carrying value of debt was $0.8billion in 2009 and $1.4billion in 2008. Fair value of the non-current debt was estimated using market prices, which were corroborated by quoted broker prices in active markets. The Company has access to substantial sources of funds at numerous banks worldwide. In September2009, the Company secured a new 364-day Credit Facility. Total credit available to the Company approximates $10billion which expires September23, 2010. 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. On July28, 2000, ALZA Corporation, a subsidiary of the Company, completed a private offering of the 3% Zero Coupon Convertible Subordinated Debentures, which were issued at a price of $551.26 per $1,000 principal amount at maturity. Under the terms of the 3% Debentures, holders are entitled to convert their debentures into approximately 15.0million shares of Johnson Johnson stock at a price of $40.102 per share. Approximately 11.4million shares have been issued as of January3, 2010, due to voluntary conversions by note holders. At the option of the holder, the 3% Debentures may be repurchased by the Company on July28, 2013, at a purchase price equal to the issue price plus accreted original issue discount to such purchase date. The Company, at its option, may also redeem any or all of the 3% Debentures after July28, 2003 at the

Income Taxes

Income Taxes
	12 Months Ended Jan. 03, 2010 USD / shares
Income Taxes [Abstract]
Income Taxes	8. Income Taxes The provision for taxes on income consists of: (Dollars in Millions) 2009 2008 2007 Currently payable: U.S. taxes $ 2,410 2,334 2,990 International taxes 1,515 1,624 1,479 3,925 3,958 4,469 Deferred: U.S. taxes 187 126 (722 ) International taxes (623 ) (104 ) (1,040 ) (436 ) 22 (1,762 ) $ 3,489 3,980 2,707 A comparison of income tax expense at the U.S. statutory rate of 35% in 2009, 2008 and 2007, to the Companys effective tax rate is as follows: (Dollars in Millions) 2009 2008 2007 U.S. $ 7,141 6,579 5,237 International 8,614 10,350 8,046 Earnings before taxes on income: $ 15,755 16,929 13,283 Tax rates: U.S. statutory rate 35.0 % 35.0 35.0 Ireland and Puerto Rico operations (5.1 ) (6.8 ) (8.8 ) Research and orphan drug tax credits (0.6 ) (0.6 ) (0.8 ) U.S. state and local 1.8 1.6 2.1 International subsidiaries excluding Ireland (6.7 ) (5.6 ) (7.3 ) U.S. manufacturing deduction (0.4 ) (0.4 ) (0.3 ) In-process research and development (IPRD) 0.0 0.4 2.1 U.S. Tax international income (1.6 ) (0.5 ) (1.9 ) All other (0.3 ) 0.4 0.3 Effective tax rate 22.1 % 23.5 20.4 The Company has subsidiaries manufacturing in Ireland under an incentive tax rate. In addition, the Company has subsidiaries operating in Puerto Rico under various tax incentive grants. The decrease in the 2009 tax rate was primarily due to increases in taxable income in lower tax jurisdictions relative to taxable income in higher tax jurisdictions. The increase in the 2008 tax rate was mainly attributed to increases in taxable income in higher tax jurisdictions relative to taxable income in lower jurisdictions, as well as a business restructuring of certain international subsidiaries in 2007, resulting in a one-time benefit of $267million, which reduced the 2007 effective tax rate by 2%. Temporary differences and carry forwards for 2009 and 2008 are as follows: 2009 2008 Deferred Tax Deferred Tax (Dollars in Millions) Asset Liability Asset Liability Employee related obligations $ 2,153 2,615 Stock based compensation 1,291 1,296 Depreciation (661 ) (523 ) Non-deductible intangibles (2,377 ) (1,791 ) International RD capitalized for tax 1,989 1,914 Reserves liabilities 1,014 688 Income reported for tax purposes 648 629 Net operating loss carryforward international 615 393 Miscellaneous internatio

Employee Related Obligations

Employee Related Obligations
	12 Months Ended Jan. 03, 2010 USD / shares
Employee Related Obligations [Abstract]
Employee Related Obligations	9. Employee Related Obligations At the end of 2009 and 2008, employee related obligations recorded on the Consolidated Balance Sheet were: (Dollars in Millions) 2009 2008 Pension benefits $ 2,792 4,382 Postretirement benefits 2,245 2,217 Postemployment benefits 1,504 870 Deferred compensation 790 772 Total employee obligations 7,331 8,241 Less current benefits payable 562 450 Employee related obligations long-term $ 6,769 7,791 Prepaid employee related obligations of $266million and $136million for 2009 and 2008, respectively, are included in other assets on the consolidated balance sheet.

Pensions and Other Benefit Plan

Pensions and Other Benefit Plans
	12 Months Ended Jan. 03, 2010 USD / shares
Pensions and Other Benefit Plans [Abstract]
Pensions and Other Benefit Plans	10. Pensions and Other Benefit Plans The Company sponsors various retirement and pension plans, including defined benefit, defined contribution and termination indemnity plans, which cover most employees worldwide. The Company also provides postretirement benefits, primarily health care, to all U.S. retired employees and their dependents. Many international employees are covered by government-sponsored programs and the cost to the Company is not significant. Retirement plan benefits are primarily based on the employees compensation during the last three to five years before retirement and the number of years of service. International subsidiaries have plans under which funds are deposited with trustees, annuities are purchased under group contracts, or reserves are provided. The Company does not fund retiree health care benefits in advance and has the right to modify these plans in the future. The Company uses the date of its consolidated financial statements (January3, 2010 and December28, 2008, respectively) as the measurement date for all U.S. and international retirement and other benefit plans. In accordance with U.S. GAAP the Company has adopted the recent standards related to employers accounting for defined benefit pension and other postretirement plans. Net periodic benefit costs for the Companys defined benefit retirement plans and other benefit plans for 2009, 2008 and 2007 include the following components: Retirement Plans Other Benefit Plans (Dollars in Millions) 2009 2008 2007 2009 2008 2007 Service cost $ 511 545 597 $ 137 142 140 Interest cost 746 701 656 174 166 149 Expected return on plan assets (934 ) (876 ) (809 ) (1 ) (2 ) (2 ) Amortization of prior service cost 13 10 10 (5 ) (4 ) (7 ) Amortization of net transition asset 1 2 1 Recognized actuarial losses 155 62 186 55 64 66 Curtailments and settlements (11 ) 7 5 (1 ) Net periodic benefit cost $ 481 451 646 $ 359 366 346 The net periodic benefit cost attributable to U.S. retirement plans was $286million, $220 million and $379million in 2009, 2008 and 2007, respectively. Amounts expected to be recognized in net periodic benefit cost in the coming year for the Companys defined benefit retirement plans and other postretirement plans: (Dollars in Millions) Amortization of net transition obligation $ 1 Amortization of net actuarial losses 296 Amortization of prior service cost 5 Unrecognized gains and losses for the U.S. pension plans are amortized over the average remaining future service for each plan. For plans with no active employees, they are amortized over the average life expectancy. The amortization of gains and losses for the other U.S. benefit plans is determined by using a 10% corridor of the greater of the market value of assets or

Savings Plan

Savings Plan
	12 Months Ended Jan. 03, 2010 USD / shares
Savings Plan [Abstract]
Savings Plan	11. Savings Plan The Company has voluntary 401 (k)savings plans designed to enhance the existing retirement programs covering eligible employees. The Company matches a percentage of each employees contributions consistent with the provisions of the plan for which he/she is eligible. Total Company matching contributions to the plans were $163million, $166million and $169million in 2009, 2008 and 2007, respectively.

Capital and Treasury Stock

Capital and Treasury Stock
	12 Months Ended Jan. 03, 2010 USD / shares
Capital and Treasury Stock [Abstract]
Capital and Treasury Stock	12. Capital and Treasury Stock Changes in treasury stock were: (Amounts in Millions Except Treasury Stock Treasury Stock Number of Shares in Thousands) Shares Amount Balance at December31, 2006 226,612 $ 10,974 Employee compensation and stock option plans (33,296 ) (2,180 ) Conversion of subordinated debentures (194 ) (13 ) Repurchase of common stock 86,498 5,607 Balance at December30, 2007 279,620 14,388 Employee compensation and stock option plans (29,906 ) (2,005 ) Conversion of subordinated debentures (19 ) (1 ) Repurchase of common stock 100,970 6,651 Balance at December28, 2008 350,665 19,033 Employee compensation and stock option plans (22,161 ) (1,377 ) Conversion of subordinated debentures (96 ) (6 ) Repurchase of common stock 37,114 2,130 Balance at January3, 2010 365,522 $ 19,780 Aggregate shares of Common Stock issued were approximately 3,120million shares at the end of 2009, 2008 and 2007. Cash dividends paid were $1.930 per share in 2009, compared with dividends of $1.795 per share in 2008 and $1.620 per share in 2007.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income
	12 Months Ended Jan. 03, 2010 USD / shares
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	13. Accumulated Other Comprehensive Income Components of other comprehensive income/(loss) consist of the following: Total Gains/ Accumulated Foreign Gains/ (Losses) on Other Currency (Losses) on Employee Derivatives Comprehensive (Dollars in Millions) Translation Securities Benefit Plans Hedges Income/(Loss) December31, 2006 $ (158 ) 61 (2,030 ) 9 (2,118 ) 2007 changes Unrealized gain (loss) 28 (78 ) Net amount reclassed to net earnings (5 ) 24 Net 2007 changes 786 23 670 (54 ) 1,425 December30, 2007 $ 628 84 (1,360 ) (45 ) (693 ) 2008 changes Unrealized gain (loss) (32 ) 94 Net amount reclassed to net earnings (27 ) 72 Net 2008 changes (2,499 ) (59 ) (1,870 ) 166 (4,262 ) December28, 2008 $ (1,871 ) 25 (3,230 ) 121 (4,955 ) 2009 changes Unrealized gain (loss) (52 ) 38 Net amount reclassed to net earnings (3 ) (14 ) Net 2009 changes 1,363 (55 ) 565 24 1,897 January3, 2010 $ (508 ) (30 ) (2,665 ) 145 (3,058 ) The tax effect on the unrealized gains/(losses) on the equity securities was income of $14 million in 2009 and expense of $14million and $46million in 2008 and 2007, respectively. The tax effect related to employee benefit plans was $302million, $1,090million and $349million in 2009, 2008 and 2007, respectively. The tax effect on the gains/(losses) on derivatives and hedges was expense of $78million and $70million in 2009 and 2008, respectively, and income of $24million in 2007. See Note 6 for additional information relating to derivatives and hedging. The currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in international subsidiaries.

International Currency Translat

International Currency Translation
	12 Months Ended Jan. 03, 2010 USD / shares
International Currency Translation [Abstract]
International Currency Translation	14. International Currency Translation For translation of its subsidiaries operating in non-U.S. Dollar currencies, the Company has determined that the local currencies of its international subsidiaries are the functional currencies except those in highly inflationary economies, which are defined as those which have had compound cumulative rates of inflation of 100% or more during the past three years, or where a substantial portion of its cash flows are not in the local currency. In consolidating international subsidiaries, balance sheet currency effects are recorded as a component of accumulated other comprehensive income. This equity account includes the results of translating all balance sheet assets and liabilities at current exchange rates, except for those located in highly inflationary economies. The translation of balance sheet accounts for highly inflationary economies are reflected in the operating results. An analysis of the changes during 2009, 2008 and 2007 for foreign currency translation adjustments is included in Note 13. Net currency transaction and translation gains and losses included in other (income)expense were losses of $210million, $31million and $23million in 2009, 2008 and 2007, respectively.

Earnings Per Share

Earnings Per Share
	12 Months Ended Jan. 03, 2010 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	15. Earnings Per Share The following is a reconciliation of basic net earnings per share to diluted net earnings per share for the fiscal years ended January3, 2010, December28, 2008 and December30, 2007: (Shares in Millions Except Per Share Data) 2009 2008 2007 Basic net earnings per share $ 4.45 4.62 3.67 Average shares outstanding basic 2,759.5 2,802.5 2,882.9 Potential shares exercisable under stock option plans 118.0 179.0 178.6 Less: shares repurchased under treasury stock method (92.0 ) (149.6 ) (154.5 ) Convertible debt shares 3.6 3.7 3.7 Adjusted average shares outstanding diluted 2,789.1 2,835.6 2,910.7 Diluted net earnings per share $ 4.40 4.57 3.63 The diluted net earnings per share calculation includes the dilutive effect of convertible debt that is offset by the related reduction in interest expense of $4million after-tax for years 2009, 2008 and 2007. Diluted net earnings per share excludes 121million, 59million and 64million shares underlying stock options for 2009, 2008 and 2007, respectively, 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.

Rental Expense and Lease Commit

Rental Expense and Lease Commitments
	12 Months Ended Jan. 03, 2010 USD / shares
Rental Expense and Lease Commitments [Abstract]
Rental Expense and Lease Commitments	16. Rental Expense and Lease Commitments Rentals of space, vehicles, manufacturing equipment and office and data processing equipment under operating leases were approximately $322million in 2009, $309million in 2008 and $302 million in 2007. The approximate minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at January3, 2010 are: (Dollars in Millions) After 2010 2011 2012 2013 2014 2014 Total $178 150 128 103 87 94 740 Commitments under capital leases are not significant.

Common Stock, Stock Option Plan

Common Stock, Stock Option Plans and Stock Compensation Agreements
	12 Months Ended Jan. 03, 2010 USD / shares
Common Stock, Stock Option Plans and Stock Compensation Agreements [Abstract]
Common Stock, Stock Option Plans and Stock Compensation Agreements	17. Common Stock, Stock Option Plans and Stock Compensation Agreements STOCK OPTIONS At January3, 2010, the Company had 11 stock-based compensation plans. The shares outstanding are for contracts under the Companys 1995 and 2000 Stock Option Plans, the 2005 Long-Term Incentive Plan, the 1997 Non-Employee Directors Plan and the ALZA, Inverness, and Scios Stock Option Plans. During 2009, no options or restricted shares were granted under any of these plans except under the 2005 Long-Term Incentive Plan. The compensation cost that has been charged against income for these plans was $628million, $627million and $698million for 2009, 2008 and 2007, respectively. The total income tax benefit recognized in the income statement for share-based compensation costs was $210million, $210 million and $238million for 2009, 2008 and 2007, respectively. Share-based compensation costs capitalized as part of inventory were insignificant in all periods. Stock options expire 10years from the date of grant and vest over service periods that range from six months to five years. All options are granted at the average of the high and low prices of the Companys common stock on the New York Stock Exchange on the date of grant. Under the 2005 Long-Term Incentive Plan, the Company may issue up to 260million shares of common stock. Shares available for future grants under the 2005 Long-Term Incentive Plan were 139.7million at the end of 2009. The Company settles employee stock option exercises with treasury shares. Treasury shares are replenished throughout the year for the number of shares used to settle employee stock option exercises. The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility represents a blended rate of 4-year daily historical average volatility rate, and a 5-week average implied volatility rate based on at-the-money traded Johnson Johnson options with a life of 2 years. Historical data is used to determine the expected life of the option. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. The average fair value of options granted was $8.35, $7.66, and $11.67 in 2009, 2008, and 2007, respectively. The fair value was estimated based on the weighted average assumptions of: 2009 2008 2007 Risk-free rate 2.71 % 2.97 % 4.78 % Expected volatility 19.5 % 15.0 % 14.7 % Expected life 6.0 yrs 6.0 yrs 6.0 yrs Dividend yield 3.30 % 2.90 % 2.50 % A summary of option activity under the Plan as of January3, 2010, December28, 2008, and December 30, 2007 and changes during the years ending on those dates is presented below: Aggregate Weighted Intrinsic Outstanding Average Value (Shares in Thousands) Shares Exercise Price (Dollars in Millions) Shares at December31, 2006 242,927 $ 54.57 $ 2,788 Options granted 26,7

Segments of Business and Geogra

Segments of Business and Geographic Areas
	12 Months Ended Jan. 03, 2010 USD / shares
Segments of Business and Geographic Areas [Abstract]
Segments of Business and Geographic Areas	18. Segments of Business(1) and Geographic Areas Sales to Customers(2) (Dollars in Millions) 2009 2008 2007 Consumer United States $ 6,837 6,937 6,408 International 8,966 9,117 8,085 Total 15,803 16,054 14,493 Pharmaceutical United States 13,041 14,831 15,603 International 9,479 9,736 9,263 Total 22,520 24,567 24,866 Medical Devices and Diagnostics United States 11,011 10,541 10,433 International 12,563 12,585 11,303 Total 23,574 23,126 21,736 Worldwide total $ 61,897 63,747 61,095 Operating Profit Identifiable Assets (Dollars in Millions) 2009(5) 2008(6) 2007(7) 2009 2008 2007 Consumer $ 2,475 2,674 2,277 $ 24,671 23,765 26,550 Pharmaceutical 6,413 7,605 6,540 21,460 19,544 19,780 Medical Devices and Diagnostics 7,694 7,223 4,846 22,853 20,779 19,978 Total 16,582 17,502 13,663 68,984 64,088 66,308 Less: Expense not allocated to segments(3) 827 573 380 General corporate(4) 25,698 20,824 14,646 Worldwide total $ 15,755 16,929 13,283 $ 94,682 84,912 80,954 Additions to Property, Depreciation and Plant Equipment Amortization (Dollars in Millions) 2009 2008 2007 2009 2008 2007 Consumer $ 439 499 504 $ 513 489 472 Pharmaceutical 535 920 1,137 922 986 1,033 Medical Devices and Diagnostics 1,114 1,251 919 1,124 1,146 1,080 Segments total 2,088 2,670 2,560 2,559 2,621 2,585 General corporate 277 396 382 215 211 192 Worldwide total $ 2,365 3,066 2,942 $ 2,774 2,832 2,777 Sales to Customers(2) Long-Lived Assets(8) (Dollars in Millions) 2009 2008 2007 2009 2008 2007 United States $ 30,889 32,309 32,444 $ 22,399 21,674 21,685 Europe 15,934 16,782 15,644 17,347 14,375 15,578 Western Hemisphere excluding U.S. 5,156 5,173 4,681 3,540 3,328 3,722 Asia-Pacific, Africa 9,918 9,483 8,326 1,868 1,898 1,261 Segments total 61,897 63,747 61,095 45,154 41,275 42,246 General corporate 790 785 702 Other non long-lived assets 48,738 42,852 38,006 Worldwide total $ 61,8

Selected Quarterly Financial Da

Selected Quarterly Financial Data (unaudited)
	12 Months Ended Jan. 03, 2010 USD / shares
Selected Quarterly Financial Data (unaudited) [Abstract]
Selected Quarterly Financial Data (unaudited)	19. Selected Quarterly Financial Data (unaudited) Selected unaudited quarterly financial data for the years 2009 and 2008 are summarized below: 2009 2008 First Second Third Fourth First Second Third Fourth (Dollars in Millions Except Per Share Data) Quarter Quarter Quarter Quarter (1) Quarter Quarter (2) Quarter Quarter (3) Segment sales to customers Consumer $ 3,711 3,854 3,989 4,249 4,064 4,036 4,099 3,855 Pharmaceutical 5,780 5,498 5,249 5,993 6,429 6,340 6,113 5,685 Med Devices Diagnostics 5,535 5,887 5,843 6,309 5,701 6,074 5,709 5,642 Total sales $ 15,026 15,239 15,081 16,551 16,194 16,450 15,921 15,182 Gross profit 10,775 10,789 10,647 11,239 11,580 11,699 11,147 10,810 Earnings before provision for taxes on income 4,643 4,263 4,245 2,604 4,747 4,375 4,290 3,517 Net earnings 3,507 3,208 3,345 2,206 3,598 3,327 3,310 2,714 Basic net earnings per share $ 1.27 1.16 1.21 0.80 1.27 1.18 1.19 0.98 Diluted net earnings per share $ 1.26 1.15 1.20 0.79 1.26 1.17 1.17 0.97 (1) The fourth quarter of 2009 includes an after-tax charge of $852million for restructuring and $212million after-tax of income from net litigation. (2) The second quarter of 2008 includes an after-tax charge of $40million for IPRD. (3) The fourth quarter of 2008 includes an after-tax charge of $141million for IPRD, $229million after-tax of income from net litigation and $331million after-tax gain on the divestiture of the Professional Wound Care business of Ethicon, Inc. The gain from the divestiture of the Professional Wound Care business of Ethicon, Inc. was reinvested in the business.

Business Combinations and Dives

Business Combinations and Divestitures
	12 Months Ended Jan. 03, 2010 USD / shares
Business Combinations and Divestitures [Abstract]
Business Combinations and Divestitures	20. Business Combinations and Divestitures Certain businesses were acquired for $2,470million in cash and $875million of liabilities assumed and non-controlling interests during 2009. These acquisitions were accounted for by the purchase method and, accordingly, results of operations have been included in the financial statements from their respective dates of acquisition. The 2009 acquisitions included: Mentor Corporation, a leading supplier of medical products for the global aesthetics market; Cougar Biotechnology, Inc., a development stage biopharmaceutical company with a specific focus on oncology; Finsbury Orthopaedics Limited, a privately held UK-based manufacturer and global distributor of orthopaedic implants; Gloster Europe, a privately held developer of innovative disinfection processes and technologies to prevent healthcare-acquired infections and substantially all of the assets and rights of Elans Alzheimers Immunotherapy Program through a newly formed company, of which the Company owns 50.1% and Elan owns 49.9%. The excess of purchase price over the estimated fair value of tangible assets acquired amounted to $2,940million and has been assigned to identifiable intangible assets, with any residual recorded to goodwill. Of this amount, approximately $1,737million has been identified as the value of IPRD primarily associated with the acquisitions of Cougar Biotechnology, Inc. and substantially all of the assets and rights of Elans Alzheimers Immunotherapy Program. Additionally, approximately $1,107million has been identified as the value of other intangible assets, including patents technology and customer relationships primarily associated with the acquisition of Mentor Corporation. The IPRD related to the acquisition of Cougar Biotechnology, Inc. was $971million and is associated with abiraterone acetate, a late stage, first-in-class compound for the treatment of prostate cancer. The value of the IPRD was calculated using cash flow projections discounted for the risk inherent in such projects. Probability of success factors ranging from 60-85% were used to reflect inherent clinical and regulatory risk. The discount rate applied was 23.5%. Refer to Note 6 for information related to the Elan transaction. Certain businesses were acquired for $1,214million in cash and $114million of liabilities assumed during 2008. These acquisitions were accounted for by the purchase method and, accordingly, results of operations have been included in the financial statements from their respective dates of acquisition. The 2008 acquisitions included: Amic AB, a privately held Swedish developer of in vitro diagnostic technologies for use in point-of-care and near-patient settings; Beijing Dabao Cosmetics Co., Ltd., a company that sells personal care brands in China; SurgRx, Inc., a privately held developer of the advanced bipolar tissue sealing system used in the ENSEAL family of devices; HealthMedia, Inc., a privately held company that creates web-based behavior change interventions; LGE Performance Systems, Inc., a privately held company known as Human Performance Institute, which develops science-based training programs t

Legal Proceedings

Legal Proceedings
	12 Months Ended Jan. 03, 2010 USD / shares
Legal Proceedings [Abstract]
Legal Proceedings	Note 21 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. There are a significant number of claimants who have pending lawsuits or claims regarding injuries allegedly due to ORTHO EVRA, RISPERDAL, LEVAQUIN, DURAGESIC, the CHARIT Artificial Disc and CYPHER Stent. 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 subsidiary, Janssen Pharmaceutica Inc. (Janssen) (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 has filed an 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. Similar litigation concerning PROPULSID is pending in Canada, where a national class action of persons alleging adverse reactions to the drug has been certified and a settlement program instituted with an aggregate cap below $10million. AFFIRMATIVE STENT PATENT LITIGATION In patent infringement actions tried in Delaware Federal District Court in late 2000, Cordis Corporation (Cordis), a subsidiary of Johnson John

Restructuring

Restructuring
	12 Months Ended Jan. 03, 2010 USD / shares
Restructuring [Abstract]
Restructuring	22. Restructuring In the fourth quarter of 2009, the Company announced global restructuring initiatives designed to strengthen the Companys position as one of the worlds leading global health care companies. This program will allow the Company to invest in new growth platforms; ensure the successful launch of its many new products and continued growth of its core businesses; and provide flexibility to adjust to the changed and evolving global environment. During the fiscal fourth quarter of 2009, the Company recorded $1.2billion in related pre-tax charges of which, approximately $830million of the pre-tax restructuring charges are expected to require cash payments. The $1.2billion of restructuring charges consists of severance costs of $748million, asset write-offs of $362million and $76million related to leasehold and contract obligations. The $362million of asset write-offs relate to inventory of $113million (recorded in cost of products sold), property, plant and equipment of $107million, intangible assets of $81million and other assets of $61million. Additionally, as part of this program the Company plans to eliminate approximately 7,500 positions of which approximately 700 have been eliminated since the restructuring was announced. The following table summarizes the severance charges and the associated spending for the fiscal year ended 2009: Asset (Dollars in Millions) Severance Write-Offs Other Total 2009 restructuring charge $ 748 362 76 1,186 Current year activity (62 ) (149 ) (28 ) (239 ) Reserve balance, January3, 2010* $ 686 213 48 947 * Cash outlays for severance are expected to be substantially paid out over the next 12 to 18months in accordance with the Companys plans and local laws. For additional information on the restructuring as it relates to the segments, see Note 18. 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. The Company accelerated 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 program the Company eliminated approximately 4,600 positions. The Company recorded $745mill

Subsequent Events

Subsequent Events
	12 Months Ended Jan. 03, 2010 USD / shares
Subsequent Events [Abstract]
Subsequent Events	23. Subsequent Events On January20, 2010, the Company completed the acquisition of Acclarent Inc. for a net purchase price of approximately $785million. Acclarent Inc. is a medical technology company dedicated to designing, developing and commercializing devices that address conditions affecting the ear, nose and throat. The Company has performed an evaluation of subsequent events through March1, 2010, the date the Company issued these financial statements.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Jan. 03, 2010 USD / shares
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Schedule Of Valuation And Qualifying Accounts Disclosure JOHNSON JOHNSON AND SUBSIDIARIES SCHEDULEII VALUATION AND QUALIFYING ACCOUNTS Fiscal Years Ended January3, 2010, December28, 2008 and December30, 2007 (Dollars in Millions) Balance at Balance at Beginning of End of Period Accruals Payments/ Other Period 2009 Accrued Rebates(1) $ 1,808 6,584 (6,753 ) 1,639 Accrued Returns 794 355 (460 ) 689 Accrued Promotions 356 2,446 (2,373 ) 429 Subtotal $ 2,958 9,385 (9,586 ) 2,757 Reserve for doubtful accounts 267 110 (44 ) 333 Reserve for cash discounts 79 1,163 (1,141 ) 101 Total $ 3,304 10,658 (10,771 ) 3,191 2008 Accrued Rebates(1) $ 1,802 5,578 (5,572 ) 1,808 Accrued Returns 648 402 (256 ) 794 Accrued Promotions 578 2,991 (3,213 ) 356 Subtotal $ 3,028 8,971 (9,041 ) 2,958 Reserve for doubtful accounts 193 101 (27 ) 267 Reserve for cash discounts 71 905 (897 ) 79 Total $ 3,292 $ 9,977(2 ) $ (9,965 ) $ 3,304 2007 Accrued Rebates(1) $ 1,691 5,243 (5,132 ) 1,802 Accrued Returns 599 395 (346 ) 648 Accrued Promotions 457 2,908 (2,787 ) 578 Subtotal $ 2,747 8,546 (8,265 ) 3,028 Reserve for doubtful accounts 160 42 (9 ) 193 Reserve for cash discounts 62 1,022 (1,013 ) 71 Total $ 2,969 9,610 (9,287 ) 3,292 (1) Includes reserve for customer rebates of $729million, $721million, $710million at January3, 2010, December28, 2008 and December30, 2007, respectively. (2) Includes $171million adjustment related to previously estimated accrued sales reserve.