EXHIBIT 99(a)(v)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
---------------------
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the Fiscal Year Ended December 30, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission File Number 1-3215
---------------------
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
(Full title of the Plan)
JOHNSON & JOHNSON
ONE JOHNSON & JOHNSON PLAZA
NEW BRUNSWICK, NEW JERSEY 08933
(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
i
Item 4. Financial Statements and Exhibits
Independent Auditors' Report
Statement of Net Assets Available for Benefits
Statement of Changes in Net Assets Available for Benefits
Notes to Financial Statements
Supplemental Schedule:
Schedule of Assets Held for Investment Purposes
Consent of Morris Davis & Chan, LLP dated June 25, 2002
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
ALZA CORPORATION TAX DEFERRAL
INVESTMENT PLAN
By: /s/ D.R. HOFFMAN
-----------------------
D.R. HOFFMANN
Trustee
June 25, 2002
ii
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2001 AND 2000
iii
ALZA CORPORATION TAX DEFERRAL
INVESTMENT PLAN
TABLE OF CONTENTS
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-10
Supplemental Schedule: 11
Schedule of Assets Held for Investment Purposes 12-39
iv
INDEPENDENT AUDITORS' REPORT
Administrative Committee of the
ALZA CORPORATION TAX DEFERRAL
INVESTMENT PLAN
We have audited the accompanying statement of net assets available for benefits
of the ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN (the Plan) as of December
31, 2001 and 2000, and the related statement of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2001 and 2000, and the changes in its net assets available for
benefits for the years then ended, in conformity with accounting principles
generally accepted in the United States of America.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedule of
assets held for investment purposes as of December 31, 2001 is presented for the
purpose of complying with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974, and is not a required part of the basic financial statements. The
supplemental schedule has been subjected to the auditing procedures applied in
our audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
April 17, 2002
1
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Statement of Net Assets Available for Benefits
December 31, 2001 and 2000
2001 2000
-------------- --------------
Investments at fair value:
Mutual funds:
Merrill Lynch Ready Asset Trust $ 15,782,386 $ 12,995,436
Merrill Lynch Basic Value 11,810,199 11,580,100
Merrill Lynch Growth - 9,524,487
Merrill Lynch Corporate Bond 3,795,085 4,022,727
Merrill Lynch Capital 3,531,862 3,718,390
Merrill Lynch Global Allocation 3,249,197 3,000,763
Merrill Lynch Equity Index Fund - 88
John Hancock Emerging Growth 2,991,029 3,013,587
Templeton International 1,798,814 1,686,211
Alliance New Europe 81,948 76,323
Alliance Premier Growth 1,353,788 821,019
Fidelity Advisor Overseas 191,448 130,419
Franklin California Growth 1,644,479 1,460,274
Merrill Lynch Healthcare 1,328,948 630,601
Merrill Lynch International Index 307,710 284,621
Merrill Lynch Pacific 63,156 42,581
Merrill Lynch Small Cap Index 215,898 142,598
Merrill Lynch S&P 500 Index 6,990,932 6,792,096
Merrill Lynch Fundamental Growth 6,918,633 -
Munder NetNet 411,528 373,199
PIMCO Small Cap Value 540,538 42,035
Other investments:
Retirement Cash Management Account 33,826,806 36,673,497
ALZA Corporation Common Stock - 49,565,200
Johnson & Johnson Common Stock 57,289,235 -
Participant loans 917,581 1,096,733
-------------- --------------
Total investments 155,041,200 147,672,985
Cash 113,914 49,018
Employer contributions receivable 2,315,461 2,071,224
Employee contributions receivable 360,343 341,163
-------------- --------------
Net assets available for benefits $ 157,830,918 $ 150,134,390
============== ==============
See accompanying notes to financial statements.
2
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Statement of Changes in Net Assets Available for Benefits
Years Ended December 31, 2001 and 2000
2001 2000
-------------- --------------
Additions to net assets attributed to:
Investment income:
Net realized and unrealized appreciation
in fair value of investments $ 8,291,237 $ 28,535,335
Interest and dividends 3,108,884 5,204,108
-------------- --------------
11,400,121 33,739,443
Employer contributions 3,594,549 3,127,724
Participant contributions 13,619,013 11,738,959
-------------- --------------
Net additions 28,613,683 48,606,126
-------------- --------------
Deductions from net assets attributed to:
Distributions 20,915,378 30,806,852
Administrative expenses 1,777 2,575
-------------- --------------
Net deductions 20,917,155 30,809,427
-------------- --------------
Increase in net assets 7,696,528 17,796,699
Net assets available for benefits:
Beginning of year 150,134,390 132,337,691
-------------- --------------
End of year $ 157,830,918 $ 150,134,390
============== ==============
See accompanying notes to financial statements.
3
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
1. DESCRIPTION OF PLAN
The following description of the ALZA CORPORATION TAX DEFERRAL INVESTMENT
PLAN (the Plan) provides only general information. Participants should
refer to the Summary Plan Description for a more complete description of
the Plan's provisions.
General
The Plan is a defined contribution plan. ALZA Corporation (the Company or
ALZA) remits to the Trust created by the Plan such amounts as are
voluntarily elected by participants and Company contributions. The Plan is
subject to the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions
Participants may make elective salary reduction contributions which are
tax deferred and are, therefore, not included in a participant's
compensation for federal income tax purposes until distributed to the
participant. Under the Plan, participants may elect to contribute through
bi-weekly payroll deductions a fixed dollar amount up to a maximum of
$10,500 in 2001 and 2000. Further restrictions may be imposed on highly
compensated individuals and Plan participants who also participate in the
ALZA Retirement Plan.
For the years ended December 31, 2001 and 2000 the Company made a
contribution of $20 each pay period for each employee (thereby making all
ALZA employees participants) to begin an account and encourage employees
to participate further in the Plan. The Company also made a matching
contribution at 50% of participant contributions. The maximum Company
contribution was $2,000 for each participant.
Participant Accounts
Each participant's account is credited with 100% of the contributions made
by the participant through a salary deferral agreement. The Company will
suspend the pretax salary deferral agreement of any participant if it
determines that a participant's annual contribution limitation, as
described in the Internal Revenue Code, will be exceeded.
Participants are allowed to make rollover contributions of amounts
received from other qualified employer-sponsored retirement plans. Such
contributions are deposited in the appropriate investment funds in
accordance with the participant's directions and the Plan's provisions.
4
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
1. DESCRIPTION OF PLAN (continued)
Participant Accounts (continued)
Participants allocate their contributions for investment into mutual funds
and other investment vehicles (see Note 4). Earnings and losses of the
investments are allocated to participants in accordance with the Plan's
provisions.
Vesting
Participant account balances are 100% vested at all times.
Distribution of Benefits
Distributions from the Plan are available to a participant (or the
beneficiary) in any of the following situations: termination of employment
with the Company, retirement, total disability, death, reaching age
59 1/2, or a qualified financial hardship. The participant (or the
beneficiary) may elect to receive a lump sum distribution of the value of
his account, or he or she may choose to have the funds remain in the Plan.
Loans
A participant who is employed by the Company and meets certain Plan
requirements may elect to borrow funds from his or her account. The
borrowings are evidenced by notes that bear interest at the published
prime rate plus 1% and have repayment terms of one to 30 years, depending
on the purpose of the loans. Such repayments and interest thereon are
credited to the borrower's account and reinvested in the same manner as
current contributions.
Income Tax Status
The Company has received a favorable determination letter from the IRS
dated March 11, 2002 which states that the Plan is qualified under Section
401(a) and 401(k) of the Internal Revenue Code. Accordingly, income
generated by the underlying trust is generally exempt from federal income
tax under Section 501(a) of the Internal Revenue Code. The Company is
unaware of any event or series of events that may cause operational
disqualification of the Plan.
5
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
1. DESCRIPTION OF PLAN (Continued)
Administrative Expenses
Although not required to do so, the Company has paid all of the expenses
(except for certain broker fees on transactions executed at the
participant's discretion, and loan fees) associated with administering the
Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment Valuation and Income Recognition
Investments in mutual funds are valued at the published fair value as
reported by the fund manager which represents the net asset value of
shares held by the Plan at year end. Other investments are valued at the
published fair value as reported. The participant loans receivable is
valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
Estimates
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires the
Plan management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may differ
from those estimates.
3. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by Merrill
Lynch Trust Company of California. Merrill Lynch Trust Company of
California is the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest transactions. Fees for the
investment management services are paid by ALZA.
6
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
4. INVESTMENT FUND ACTIVITY
During 1991, the Plan was amended to allow for the acceptance of quarterly
plan-to-plan transfers from the ALZA Corporation Employee Stock Ownership
Plan (the ESOP) pursuant to the phased termination of the ESOP. The Plan
was amended in 1992 to allow ALZA Common Stock to be an investment choice
under the Plan. The ESOP termination was considered complete as of
December 1995, and no further ALZA Stock Transfers were made after that
date. The following are investment options under the Plan:
Mutual Funds
Merrill Lynch Ready Asset Trust - A money market fund.
Merrill Lynch Basic Value Fund - A fund of equity securities that
management of the fund believes are undervalued and represent basic
investment value.
Merrill Lynch Growth Fund - A mutual fund investing primarily in a
diversified portfolio of equity securities seeking growth of capital and,
as a secondary objective, income. This fund was eliminated as an
investment option as of December 31, 2001.
Merrill Lynch Corporate Bond Fund - A fund of long-term corporate
fixed-income securities, including corporate bonds and notes, convertible
securities and preferred stocks.
Merrill Lynch Capital Fund - A fund of equity, debt and convertible
securities that seeks to achieve the highest total return consistent with
prudent risk.
Merrill Lynch Global Allocation Fund - A fund investing in domestic and
foreign equities, debt, and money markets seeking total return consistent
with prudent risk.
Merrill Lynch Equity Index Fund - A fund investing in S&P 500 Index(TM)
stocks that seeks to achieve market performance with diversified
securities. This fund was eliminated as an investment option as of
December 31, 2001.
John Hancock Emerging Growth Fund - A fund investing in emerging-growth
companies.
Templeton International Fund - A fund investing in equity securities
trading on foreign markets seeking long term growth of capital.
7
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
4. INVESTMENT FUND ACTIVITY (Continued)
Mutual Funds (continued)
Effective May 2000, the following funds were added as investment options:
Alliance New Europe Fund - This fund seeks long-term capital appreciation
by investing at least 65% of its total assets in the equity securities of
European companies.
Alliance Premier Growth Fund - This fund seeks long-term growth of capital
by investing at least 85% of its total assets in the equity securities of
large, carefully selected, U.S. companies.
Fidelity Advisor Overseas Fund - This fund seeks capital growth by
investing at least 65% of its total assets in foreign securities.
Franklin California Growth Fund - This fund seeks capital appreciation by
investing in equity securities of companies that maintain their
headquarters or conduct a majority of their operations in California.
Merrill Lynch Healthcare Fund - This fund seeks long-term capital
appreciation through worldwide investment in equity securities of
companies that derive a substantial portion of their sales from products
and services in health care.
Merrill Lynch International Index Fund - This fund seeks to provide
investment results that, before expenses, replicate the total return of
the Morgan Stanley Capital International EAFE Index.
Merrill Lynch Pacific Fund - This fund seeks long-term capital
appreciation by investing primarily in equities of corporations domiciled
in Far Eastern or Western Pacific countries.
Merrill Lynch Small Cap Index Fund - This fund seeks to provide investment
results that, before expenses, replicate the total return of the Russell
2000 Index.
Merrill Lynch S&P 500 Index Fund - This fund seeks to provide investment
results that, before expenses, replicate the total return of the Standard
& Poor's 500(TM) Composite Stock Price Index.
8
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
4. INVESTMENT FUND ACTIVITY (Continued)
Mutual Funds (continued)
Merill Lynch Fundamental Growth Fund - This fund seeks long-term growth of
capital by investing at least 65% of assets in equities issued by medium
and large capitalization companies.
Munder NetNet Fund - This fund seeks long-term capital appreciation by
investing at least 65% of its total assets in equity securities.
PIMCO Small Cap Value Fund - This fund seeks long-term growth of capital
by investing at least 65% of its total assets in the common stocks of
companies with market capitalizations between $50 million and $1 billion.
Other Investments
Retirement Cash Management Account (RCMA) - A self-directed brokerage
account that enables participants to choose from a wide variety of
investments.
ALZA Corporation Common Stock - A fund consisting of shares of ALZA Common
Stock transferred from the ALZA ESOP or purchased under the provisions of
the Plan.
Johnson & Johnson Common Stock Fund - On June 22, 2001, a merger between
Johnson & Johnson and ALZA Corporation was completed as further discussed
in Note 5. Holders of ALZA common stock received 0.98 of a share of
Johnson & Johnson common stock for each share of ALZA common stock.
Investments representing 5% or more of the Plan's net assets were as
follows:
December 31,
----------------------------
2001 2000
----------- -----------
Merrill Lynch Ready Asset Trust $15,782,386 $12,995,436
Merrill Lynch Basic Value Fund 11,810,199 11,580,100
Merrill Lynch Growth Fund - 9,524,487
ALZA Corporation Common Stock
Held in ALZA Corporation Common Stock Fund - 49,565,200
Held in Retirement Cash Management Account - 3,737,535
Johnson & Johnson Common Stock
Held in Johnson & Johnson Common Stock Fund 57,289,235 -
Held in Retirement Cash Management Account 4,928,741 -
9
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
5. COMPANY MERGER
On June 22, 2001 a merger between Johnson & Johnson and ALZA Corporation
(ALZA) was completed. The Plan will continue through at least December 31,
2002. It is not anticipated that there will be any employer contributions
to the Plan subsequent to December 31, 2002. However, the future of the
Plan has not yet been determined.
10
SUPPLEMENTAL SCHEDULE
11
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------- ---------------------------------------- ----------------------------------- ------------ ------------
* Merrill Lynch Ready Asset Trust Fund $ 15,782,386 $ 15,782,386
* Merrill Lynch Basic Value Fund 13,718,100 11,810,199
* Merrill Lynch Corporate Bond Fund 3,832,111 3,795,085
* Merrill Lynch Capital Fund 4,121,464 3,531,862
* Merrill Lynch Global Allocation Fund 3,456,736 3,249,197
John Hancock Emerging Growth Fund 3,798,050 2,991,029
Templeton International Fund 1,865,227 1,798,814
Alliance New Europe Fund 99,013 81,948
Alliance Premier Growth Fund 1,792,932 1,353,788
Fidelity Advisor Overseas Fund 247,275 191,448
Franklin California Growth Fund 2,202,560 1,644,479
* Merrill Lynch Healthcare Fund 1,317,376 1,328,948
* Merrill Lynch International Index Fund 427,317 307,710
* Merrill Lynch Pacific Fund 79,053 63,156
* Merrill Lynch Small Cap Index Fund 226,549 215,898
* Merrill Lynch S&P 500 Index Fund 8,334,709 6,990,932
* Merrill Lynch Fundamental Growth Fund 10,495,914 6,918,633
Munder NetNet Fund 461,085 411,528
PIMCO Small Cap Value Fund 509,878 540,538
* Johnson & Johnson Common Stock - 969,361 shares 8,620,415 57,289,235
Retirement Cash Management Account
Daimler Chrysler Common Stock - 374 shares 17,874 15,585
Deutsche Bank Common Stock - 165 shares 10,260 11,575
Elan Corp. Common Stock - 500 shares 310 67
Global Crossing Ltd. Common Stock - 659 shares 14,771 553
Globalsantafe Corp. Common Stock - 284 shares 7,511 8,100
12
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------- ---------------------------------------- ----------------------------------- ------------ ------------
Global Telecommunication Common Stock - 200 shares $ 8,013 $ 32
Interwave Communications International Common Stock - 50 shares 1,303 38
Loral Space & Comm Ltd. Common Stock - 3,075 shares 35,308 9,194
Open TV Corp. Common Stock - 50 shares 8,500 414
Sina.com Common Stock - 250 shares 1,738 395
Check Point Software Tech Ltd. Common Stock - 120 shares 4,937 4,787
Westpac Banking Corp. Common Stock - 6,375 shares 53,295 51,414
Flextronics International Ltd. Common Stock - 1,974 shares 58,706 47,356
ADC Telecommunications Inc. Common Stock - 1,000 shares 9,163 4,600
A N Amro Common Stock - 700 shares 16,532 11,396
AOL Time Warner Inc. Common Stock - 3,820 shares 146,167 122,622
AT&T Corporation Common Stock - 1,245 shares 37,870 22,579
AT & T Wireless Common Stock - 558 shares 13,937 8,022
AVI Biopharma Inc. Common Stock - 200 shares 4,800 2,184
Abbott Labs Common Stock - 1,538 shares 45,728 85,744
Abbey Natl. Common Stock - 295 shares 8,202 8,408
Abgenix Inc. Common Stock - 257 shares 14,095 8,645
Adaptive Broadband Corp. Common Stock - 20 shares 1,328 -
Adaptec Inc. Common Stock - 700 shares 23,210 10,150
Advanced Digital Information Common Stock - 500 shares 7,113 8,020
Advanced Fibre Communication Common Stock - 400 shares 29,248 7,068
Advance PCS Common Stock - 68 shares 2,382 1,996
Advanced Micro Devices Inc. Common Stock - 2,307 shares 62,153 36,589
Advent Software Inc. Common Stock - 86 shares 4,267 4,296
Affiliated Computer Svcs Inc. Common Stock - 35 shares 2,700 3,715
Affymetrix Inc. Common Stock - 1,208 shares 103,084 45,602
13
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------- ---------------------------------------- ----------------------------------- ------------ ------------
Agilent Technologies Inc. Common Stock - 1,719 shares $ 78,024 $ 49,009
Agile Software Corp. Common Stock - 400 shares 19,980 6,888
Air Products & Chemicals Common Stock - 140 shares 4,362 6,567
AKZO Common Stock - 240 shares 5,015 10,764
Alcoa Inc. Common Stock - 2,180 shares 68,543 77,499
Alliant Tech Systems Inc. Common Stock - 60 shares 4,202 4,632
Allied Irish Banks Common Stock - 500 shares 9,263 11,550
Allstate Corp. Common Stock - 120 shares 5,108 4,044
Alpha Industries Inc. Common Stock - 181 shares 5,186 3,946
Altera Corp. Common Stock - 5,864 shares 47,104 124,434
Amazon.com Common Stock - 150 shares 4,985 1,623
America Movil Common Stock - 1,000 shares 6,021 19,480
America West Common Stock - 570 shares 1,796 1,995
American Bank Common Stock - 4,000 shares 7,360 6,440
American Home Products Common Stock - 235 shares 8,243 14,420
American Intl. Group Inc. Common Stock - 610 shares 50,011 48,434
American Tower Corp. Common Stock - 100 shares 3,344 947
Amerisourcebergen Corp. Common Stock - 198 shares 12,822 12,583
Amgen Inc. Common Stock - 1,300 shares 54,922 73,372
Anadarko Pete Corp. Common Stock - 200 shares 10,109 11,370
Analog Devices Inc. Common Stock - 300 shares 22,333 13,317
Andrx Corp. Group Common Stock - 200 shares 12,898 14,082
Antigenics Inc. Common Stock - 1,059 shares 6,125 968
Apollo Group Inc. Common Stock - 244 shares 8,058 10,982
Apple Computer Inc. Common Stock - 640 shares 16,988 14,016
Applera Common Stock - 225 shares 6,731 8,836
14
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------- ---------------------------------------- ----------------------------------- ------------ ------------
Applied Digital Solutions Common Stock - 1,700 shares $ 11,963 $ 731
Applied Micro Circuits Common Stock - 400 shares 4,076 4,528
Applied Materials Inc. Common Stock - 8,706 shares 243,017 349,111
Arch Wireless Inc. Common Stock - 47 shares 2,233 -
Ariad Pharmaceuticals Inc. Common Stock - 100 shares 4,338 533
Ariba Inc. Common Stock - 500 shares 4,825 3,080
Armstrong Holdings Inc. Common Stock - 100 shares 8,610 341
Ascential Software Corp. Common Stock - 27 shares - 109
Aspeon Inc. Common Stock - 350 shares 3,491 28
At Home Common Stock - 300 shares 13,766 2
At Track Communications Common Stock - 60 shares 2,760 90
Atmel Corp. Common Stock - 400 shares 5,925 2,948
Avanex Corp. Common Stock - 40 shares 1,065 236
Avaya Inc. Common Stock - 210 shares 5,752 2,552
Avon Prod. Inc. Common Stock - 329 shares 11,135 15,318
Axa Common Stock - 380 shares 12,861 7,988
Bae Sys Common Stock - 363 shares 6,993 6,588
BASF Ag Common Stock - 224 shares 10,196 8,492
B A T Intl. Inc. Common Stock - 6,900 shares 2,779 69
BJS Wholesale Club Inc. Common Stock - 1,000 shares 7,181 44,100
BJ Svcs Co. Common Stock - 249 shares 7,348 8,080
BP Amoco Common Stock - 790 shares 36,533 36,743
BT Group Common Stock - 250 shares 6,773 9,188
BMC Software Inc. Common Stock - 1,000 shares 46,079 16,370
Ballard Pwr Sys. Inc. Common Stock - 748 shares 35,421 22,118
Bank of America Corp. Common Stock - 1,775 shares 65,901 111,736
15
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------- ---------------------------------------- ----------------------------------- ------------ ------------
Bank of NY Common Stock - 550 shares $ 21,104 $ 22,440
Bank One Corp. Common Stock - 282 shares 11,546 11,025
BARR Labs Common Stock - 92 shares 7,433 7,301
Bayer Common Stock - 270 shares 8,199 8,451
BEA Sys Inc. Common Stock - 1,000 shares 12,500 15,400
Becton Dickinson Co. Common Stock - 100 shares 3,038 3,315
Bed Bath & Beyond Inc. Common Stock - 288 shares 7,141 9,763
Bellsouth Corp. Common Stock - 800 shares 17,380 30,520
Berkshire Hathaway Inc. Common Stock - 30 shares 66,601 75,750
Best Buy Co. Inc. Common Stock - 837 shares 27,610 62,340
Bio Technology Gen. Corp. Common Stock - 500 shares 5,419 4,115
Biogen Inc. Common Stock - 23 shares 1,856 1,319
Biotech Common Stock - 200 shares 21,151 26,400
Boeing Company Common Stock - 570 shares 25,222 22,105
Boston Scientific Corp. Common Stock - 200 shares 3,050 4,824
Boykin Lodging Co. Common Stock - 6,000 shares 54,600 47,820
Bristol Myers Squibb Co. Common Stock - 407 shares 17,660 20,757
Broadcom Corp. Common Stock - 357 shares 48,554 14,591
Broadvision Inc. Common Stock - 1,200 shares 52,188 3,288
Brocade Communications Sys. Common Stock - 1,240 shares 83,804 41,069
Burnham Pac Pptys Inc. Common Stock - 1,000 shares 12,375 4,120
CMGI Common Stock - 1,450 shares 52,897 2,364
CPX Corp. Common Stock - 1 share - 45
CVS Corp. Common Stock - 715 shares 19,590 21,164
Cable & Wireless Pub Ltd. Co. Common Stock - 200 shares 3,240 2,962
Cable Design Technologies Co. Common Stock - 300 shares 6,900 4,104
16
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Cabot Corp. Common Stock - 166 shares $ 6,059 $ 5,926
Cadbury Schweppes Common Stock - 261 shares 6,645 6,713
Calico Commerce Inc. Common Stock - 125 shares 6,300 21
Calif Micro Devices Corp. Common Stock - 300 shares 11,010 1,410
California Water Svc Grp Common Stock - 1,000 shares 18,223 25,750
Caliper Techs Corp. Common Stock - 116 shares 4,987 1,811
Calpine Corp. Common Stock - 517 shares 17,214 8,680
CAM COMM Solutions Inc. Common Stock - 500 shares 8,075 2,000
Canon Inc. Common Stock - 600 shares 11,706 21,036
Catalytica Energy Sys. Common Stock - 1,001 shares 7,837 4,575
Caterpillar Inc. Common Stock - 479 shares 20,324 25,004
Cellular Tech Svcs Common Stock - 500 shares 5,388 1,145
Cendant Corp. Common Stock - 50 shares 1,055 981
Centura Software Corp. Common Stock - 2,100 shares 14,150 11
Cepheid Inc. Common Stock - 100 shares 1,124 420
Cephalon Inc. Common Stock - 56 shares 4,051 4,233
ChevronTexaco Corp. Common Stock - 982 shares 74,624 88,003
China Mobile HK Common Stock - 100 shares 1,440 1,748
Chiron Corp. Common Stock - 48 shares 678 2,104
Chubb Corp. Common Stock - 265 shares 14,933 18,285
Ciena Corp. Common Stock - 500 shares 15,075 7,155
Cisco Systems Inc. Common Stock - 36,406 shares 1,197,190 659,313
Citigroup Inc. Common Stock - 7,979 shares 242,279 402,780
Citrix Systems Inc. Common Stock - 1,553 shares 41,414 35,191
City National Corp. Common Stock - 147 shares 6,632 6,887
Coca Cola Common Stock - 253 shares 12,237 11,928
17
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Colonial Properties Common Stock - 750 shares $ 18,469 $ 23,363
Comcast Corp. Common Stock - 1,200 shares 44,682 43,200
Compaq Computer Corp. Common Stock - 2,280 shares 40,509 22,253
Computer Science Corp. Common Stock - 506 shares 24,586 24,784
Conagra Inc. Common Stock - 400 shares 7,840 9,508
Concord EFS Inc. Common Stock - 136 shares 2,919 4,458
Connectics Corp. Common Stock - 2,000 shares 11,075 23,800
Consolidated Edison Inc. Common Stock - 92 shares 3,048 3,698
Copart Inc. Common Stock - 193 shares 5,620 7,019
Copper Mtn. Networks Inc. Common Stock - 800 shares 5,720 1,352
Cor Therapeutics Inc. Common Stock - 26 shares 816 622
Corning Inc. Common Stock - 128 shares 9,866 1,142
Corporate High Yld Common Stock - 3,000 shares 37,902 24,570
Correctional Properties Trust Common Stock - 6,000 shares 55,350 101,400
Corvis Corp. Common Stock - 1,093 shares 4,768 3,530
Cybertel Communications Corp. Common Stock - 200 shares 2,125 60
Cylink Corp. Common Stock - 3,410 shares 12,190 9,378
Cypress Semiconductor Common Stock - 1,000 shares 32,627 19,930
DMC Stratex Networks Inc. Common Stock - 50 shares 1,750 389
Debt Strategy Fund Inc. Common Stock - 3,391 shares 40,000 22,008
Dell Computer Corp. Common Stock - 10,072 shares 233,916 273,757
Delta Air Lines Inc. Common Stock - 100 shares 6,200 2,926
Deltagen Inc. Common Stock - 250 shares 4,925 2,300
Developers Diversified Rlty. Common Stock - 3,600 shares 54,743 68,760
Diageo Common Stock - 320 shares 10,131 14,806
Diametrics Med. Common Stock - 200 shares 1,630 1,132
18
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Digital Lightwave Inc. Common Stock - 100 shares $ 12,988 $ 938
Digital Video Systems Common Stock - 500 shares 5,950 2,245
Walt Disney Company Common Stock - 2,240 shares 64,863 46,422
Ditech Communications Common Stock - 185 shares 4,051 1,114
Dollar Tree Stores Inc. Common Stock - 620 shares 14,182 19,164
Dominium Res Inc. Common Stock - 1,931 shares 80,102 116,026
Donaldson Co. Inc. Common Stock - 400 shares 9,310 15,536
DSL Net Inc. Common Stock - 200 shares 1,375 252
E I Dupont Common Stock - 747 shares 38,207 31,744
Duke Energy Corp. Common Stock - 425 shares 13,129 16,686
Durect Corp. Common Stock - 1,000 shares 13,100 11,590
EMC Corporation Common Stock - 6,210 shares 116,433 83,462
Eni SPA Common Stock - 160 shares 9,903 9,914
E Trade Group Inc. Common Stock - 813 shares 22,253 8,333
Econnect Common Stock - 600 shares 1,564 26
Edison Intl. Common Stock - 238 shares 3,760 3,592
Edwards JD & Co. Common Stock - 316 shares 4,753 5,198
Egain Communications Corp. Common Stock - 600 shares 1,647 840
Eisai Ltd. Common Stock - 282 shares 6,786 7,121
El Paso Corp. Common Stock - 1,230 shares 19,558 54,870
Elan Corp. Common Stock - 692 shares 23,653 31,182
Electric Data Sys. Corp. Common Stock - 1,011 shares 48,013 69,292
Eloyalty Corp. Common Stock - 30 shares 10,138 159
Emerson Elec. Co. Common Stock - 150 shares 9,309 8,565
Endesa S.A. Common Stock - 1,085 shares 25,037 17,002
Energy Power Sys. Ltd. Common Stock - 2,000 shares 11,580 8,400
19
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Engage Technologies Inc. Common Stock - 250 shares $ 2,003 $ 110
Enron Corp. Common Stock - 4,703 shares 80,036 2,822
Enterasys Networks Inc. Common Stock - 500 shares 7,964 4,425
Entrada Networks Inc. Common Stock - 50 shares 97 6
Enzon Inc. Common Stock - 99 shares 6,359 5,572
Enzo Biochem Inc. Common Stock - 300 shares 4,905 7,050
Equity Office Properties Common Stock - 100 shares 3,050 3,008
Equity Residential Properties Common Stock - 1,200 shares 30,383 34,452
Ericsson Common Stock - 628 shares 9,472 3,278
Essex Properties Common Stock - 1,400 shares 34,600 69,174
Etoys Inc. Common Stock - 200 shares 1,131 1
Exodus Communications Inc. Common Stock - 1,468 shares 41,654 57
Extreme Networks Inc. Common Stock - 100 shares 3,250 1,290
Exxon Mobil Corp. Common Stock - 2,742 shares 95,599 107,761
Federal Natl. Mtg. Assn Common Stock - 505 shares 29,547 40,182
Fedex Corp. Common Stock - 25 shares 873 1,297
Fibercore Inc. Common Stock - 1,200 shares 11,272 2,880
Finisar Corp. Common Stock - 1,175 shares 38,986 11,950
First Health Group Corp. Common Stock - 207 shares 5,488 5,121
FleetBoston Finl Corp. Common Stock - 490 shares 18,719 17,885
Fluor Corp. Common Stock - 200 shares - 7,480
Ford Motor Co. Common Stock - 200 shares 2,724 3,144
Forest Labs Inc. Common Stock - 200 shares 13,340 16,390
Foundry Networks Inc. Common Stock - 250 shares 22,544 2,038
4 Kids Entertainment Inc. Common Stock - 1,000 shares 29,163 20,030
France Telecom Common Stock - 200 shares 19,313 7,998
20
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Franklin Res. Inc. Common Stock - 80 shares $ 3,513 $ 2,822
Friede Goldman Halter Common Stock - 570 shares 4,913 108
Fuji Photo Film Common Stock - 488 shares 12,927 17,539
Gannett Co. Common Stock - 1,100 shares 51,319 73,953
Gap Inc. Common Stock - 1,012 shares 9,360 14,107
Genentech Inc. Common Stock - 600 shares 48,368 32,550
Genl Dynamics Corp. Common Stock - 100 shares 2,400 7,964
General Electric Common Stock - 14,890 shares 360,438 596,785
General Motors Corp. Common Stock - 100 shares 9,212 4,860
Genzyme Corp. Common Stock - 70 shares 3,703 4,190
Geron Corp. Common Stock - 1,000 shares 10,463 8,700
Gillette Co. Common Stock - 780 shares 34,843 26,052
Glaxo Common Stock - 1,393 shares 48,298 69,399
Goldman Sachs Group Inc. Common Stock - 275 shares 21,963 25,506
Guidant Corp. Common Stock - 780 shares 25,671 38,844
HRPT Properties Common Stock - 18,600 shares 121,685 161,076
HSBC Hldg Common Stock - 306 shares 6,560 18,271
Halliburton Company Common Stock - 100 shares 3,325 1,310
Harley Davidson Inc. Common Stock - 932 shares 10,380 50,617
Harmonic Lightwaves Inc. Common Stock - 475 shares 19,737 5,710
Health Care Ppty Invs. Common Stock - 4,000 shares 110,600 144,840
Health Mgmt Assoc. Inc. Common Stock - 500 shares 7,543 9,200
Healthcare Rlty Common Stock - 5,000 shares 89,563 140,000
Health Care REIT Inc. Common Stock - 6,000 shares 104,600 146,100
Health Grades Inc. Common Stock - 2,000 shares 9,075 140
Heinz H J Co. Common Stock - 200 shares 5,993 8,224
21
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Hewlett Packard Co. Common Stock - 1,940 shares $ 47,292 $ 39,848
Highwoods Pptys Inc. Common Stock - 2,400 shares 58,691 62,280
Hitachi Ltd. Common Stock - 132 shares 13,000 9,661
Home Depot Inc. Common Stock - 3,130 shares 69,568 159,655
Honda Motor Common Stock - 83 shares 7,117 6,765
Honeywell Intl. Inc. Common Stock - 35 shares 1,298 1,168
House2home Inc. Common Stock - 500 shares 2,069 1
Human Genome Sciences Inc. Common Stock - 68 shares 4,539 2,293
Humphrey Hospitality Common Stock - 10,000 shares 73,156 29,500
Hyseq Inc. Common Stock - 200 shares 19,150 1,544
Icos Corp. Common Stock - 105 shares 5,366 6,031
Idec Pharmaceuticals Corp. Common Stock - 98 shares 5,511 6,755
Ibis Technology Corp. Common Stock - 30 shares 1,153 446
Illumina Inc. Common Stock - 230 shares 3,730 2,705
Imagistics Intl. Inc. Common Stock - 8 shares 145 99
Immunex Corp. Common Stock - 979 shares 29,417 27,128
Incyte Pharmaceuticals Inc. Common Stock - 60 shares 7,130 1,166
Infocast Corp. Common Stock - 200 shares 1,775 12
Infocus Corp. Common Stock - 1,000 shares 16,100 22,020
Ing Gp Common Stock - 668 shares 7,680 17,001
Inhale Therapeutic Sys. Common Stock - 560 shares 14,984 10,388
Innkeepers USA Common Stock - 5,000 shares 58,000 49,000
Integrated Device Tech Common Stock - 100 shares 3,650 2,659
Intelidata Technologies Common Stock - 250 shares 1,613 708
Intel Corp. Common Stock - 34,424 shares 849,040 1,019,740
Intermune Inc. Common Stock - 73 shares 3,243 3,596
22
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Interferon Common Stock - 3,000 shares $ 6,100 $ 1,350
Intl. Business Mach. Common Stock - 2,450 shares 235,775 296,352
Intl. Fibercom Inc. Common Stock - 600 shares 7,189 150
Intl. Paper Co. Common Stock - 973 shares 37,877 39,269
Internet Cap Group Inc. Common Stock - 2,922 shares 63,034 3,536
Internet Infrastructure Common Stock - 600 shares 24,277 3,756
Internet Architecture Common Stock - 200 shares 15,813 7,670
Intersil Hldg. Corp. Common Stock - 70 shares 2,495 2,258
Intrpublic Grp of Co. Common Stock - 635 shares 18,647 18,758
Intuit Inc. Common Stock - 100 shares 3,106 4,278
Invitrogen Common Stock - 100 shares 7,017 6,193
Invision Technologies Inc. Common Stock - 200 shares 2,970 5,958
Iomega Corp. Common Stock - 200 shares 8,638 1,670
Isis Pharmaceuticals Common Stock - 1,200 shares 10,428 26,628
Ito Yokado Common Stock - 230 shares 14,528 10,465
12 Technologies Inc. Common Stock - 110 shares 5,644 869
Ivax Corp. Common Stock - 300 shares 5,934 6,042
Ivoice Com Inc. Common Stock - 3,000 shares 10,894 165
JDN Rlty Corp. Common Stock - 5,000 shares 53,000 61,650
JDS Uniphase Corp. Common Stock - 9,686 shares 358,076 84,074
JMAR Inds Inc. Common Stock - 150 shares 2,481 449
JNI Corp. Common Stock - 295 shares 12,539 2,451
JP Realty Inc. Common Stock - 5,000 shares 81,125 118,950
JP Morgan Chase and Co. Common Stock - 2,385 shares 89,675 86,695
Jacobs Engn Grp Inc. Common Stock - 506 shares 15,801 33,396
* Johnson & Johnson Common Stock - 83,397 shares 336,166 4,928,741
23
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Jones Apparel Grp Inc. Common Stock - 116 shares $ 3,848 $ 3,848
Juniper Networks Inc. Common Stock - 1,273 shares 72,829 24,123
KLA Instrs Corp. Common Stock - 271 shares 10,066 13,431
Kanakaris Wireless Common Stock - 13 shares 1,074 2
Kimberly Clark Common Stock - 230 shares 11,209 13,754
King Pharmaceuticals Inc. Common Stock - 157 shares 5,441 6,614
Kingfisher Common Stock - 613 shares 6,232 6,866
Koninkl Phil E Ny Common Stock - 664 shares 16,027 19,329
Korea Telecom Common Stock - 260 shares 8,625 5,286
Korea Elec Pwr Common Stock - 720 shares 10,468 6,588
Kulicke & Soffa Indust Common Stock - 2,000 shares 57,800 34,300
Kyocera Corp. Common Stock - 185 shares 12,431 12,345
LSI Logic Corp. Common Stock - 2,600 shares 116,609 41,028
LTX Corp. Common Stock - 500 shares 13,138 10,470
L-3 Communications Hldg. Common Stock - 99 shares 8,170 8,910
Lam Research Corp. Common Stock - 250 shares 5,581 5,805
Learningstar Corp. Common Stock - 125 shares 9,056 188
Learn2 Corp. Common Stock - 474 shares 5,311 57
Lilly Eli Co. Common Stock - 930 shares 62,534 73,042
Lionbridge Technologies Common Stock - 57 shares 2,160 100
Lockheed Martin Corp. Common Stock - 100 shares 1,756 4,667
Loudeye Technologies Inc. Common Stock - 150 shares 6,022 110
Lucent Technologies Inc. Common Stock - 2,792 shares 101,089 17,590
MGI Pharma Inc. Common Stock - 3,381 shares 102,590 51,662
MRV Communications Inc. Common Stock - 100 shares 7,381 424
Macromedia Inc. Common Stock - 220 shares 4,647 3,916
24
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Manor Care Inc. Common Stock - 269 shares $ 7,619 $ 6,378
Marks & Spencer Ltd. Common Stock - 245 shares 9,004 7,669
Martha Stewart Common Stock - 200 shares 5,875 3,290
Massey Energy Co. Common Stock - 400 shares 16,674 8,292
Maxim Integrated Prods. Common Stock - 3,200 shares 80,610 168,032
Maxygen Inc. Common Stock - 600 shares 12,204 10,542
McData Corp. Common Stock - 162 shares 1,878 3,969
McDonalds Corp. Common Stock - 1,800 shares 44,049 47,646
Medimmune Inc. Common Stock - 76 shares 4,431 3,553
Medtronic Inc. Common Stock - 2,150 shares 88,260 110,102
Mellon Financial Corp. Common Stock - 50 shares 1,642 1,881
Merck & Co. Inc. Common Stock - 1,832 shares 96,223 107,702
* Merrill Lynch & Co. Common Stock - 9,305 shares 580,833 484,977
MessageMedia Inc. Common Stock - 230 shares 1,592 32
MetLife Inc. Common Stock - 575 shares 11,969 18,216
Metricom Inc. Common Stock - 2,200 shares 39,189 136
Metrocall Inc. Common Stock - 1,000 shares 11,650 26
Metromedia Common Stock - 400 shares 4,700 176
Microsoft Corp. Common Stock - 8,318 shares 394,920 551,068
Micromuse Inc. Common Stock - 70 shares 7,033 1,050
Micron Technology Inc. Common Stock - 200 shares 12,575 6,200
Millennium Pharmaceuticals Common Stock - 130 shares 9,689 3,186
Minnesota Mng Mfg. Common Stock - 115 shares 9,573 13,594
MIPS Techs Inc. Common Stock - 13 shares 723 104
Molecular Diagnostics Common Stock - 491 shares 9,269 442
Moody's Corp. Common Stock - 180 shares 6,229 7,175
25
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------- ---------------------------- ----------------------------------- ---------- ----------
Motorola Inc. Common Stock - 1,505 shares $ 44,636 $ 22,605
UTS Motorola Inc. Common Stock - 145 shares 7,259 6,777
NRG Energy Inc. Common Stock - 400 shares 9,905 6,200
Nanogen Inc. Common Stock - 104 shares 1,571 600
Nasdaq-100 Common Stock - 4,001 shares 233,660 155,679
Natl. Australia Common Stock - 198 shares 9,603 16,137
Nationwide Health Properties Common Stock - 8,000 shares 98,800 149,520
Neotherapeutics Inc. Common Stock - 1,000 shares 3,350 3,660
Nestle S A Common Stock - 370 shares 9,401 19,703
Network Appliance Inc. Common Stock - 1,926 shares 115,323 42,122
New Focus Inc. Common Stock - 760 shares 11,251 2,896
News Corp. Ltd. Common Stock - 1,000 shares 49,863 31,810
Nintendo Ltd. Common Stock - 286, shares 3,231 6,149
Nippon Teleg & Tel Corp. Common Stock - 570 shares 31,636 9,234
Nisource Inc. Common Stock - 395 shares 10,088 9,109
Nokia Corp. Common Stock - 12,464 shares 298,877 305,736
Norsk Hydro Common Stock - 400 shares 18,030 16,800
Nortel Networks Corp. Common Stock - 2,370 shares 83,999 17,683
Nova Chemicals Corp. Common Stock - 100 shares 2,231 1,927
Novartis Common Stock - 512 shares 11,542 18,688
Novell Inc. Common Stock - 300 shares 8,950 1,377
Novellus Sys Inc. Common Stock - 1,898 shares 77,627 74,876
Nvidia Common Stock - 118 shares 5,031 7,894
Nutrition 21 Inc. Common Stock - 350 shares 2,433 249
Office Depot Inc. Common Stock - 500 shares 10,881 9,270
On2.com Inc. Common Stock - 460 shares 7,199 156
26
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Openwave Sys Inc. Common Stock - 2,000 shares $ 18,420 $ 19,580
Oracle Sys Corp. Common Stock - 24,817 shares 158,049 342,723
Outback Steakhouse Inc. Common Stock - 260 shares 6,667 8,905
PG&E Corp. Common Stock - 370 shares 8,998 7,123
Pacific Aerospace & Eltr Inc. Common Stock - 2,000 shares 2,815 90
Pall Corp. Common Stock - 695 shares 15,635 16,722
Palm Inc. Common Stock - 2,950 shares 19,873 11,446
Pan Pacific Retail Properties Common Stock - 930 shares 18,918 26,710
JC Penney Co. Common Stock - 2,000 shares 52,700 53,800
Peoplesoft Inc. Common Stock - 120 shares 4,345 4,824
Pepsi Bottling Group Inc. Common Stock - 226 shares 5,462 5,311
Pepsico Inc. Common Stock - 1,800 shares 53,668 87,642
Peregrine Systems Inc. Common Stock - 305 shares 6,735 4,523
Peregrine Pharmactls Inc. Common Stock - 1,000 shares 4,060 3,430
Petrleo Bras Vtg. Spd Common Stock - 260 shares 6,895 6,058
Pfizer Inc. Common Stock - 4,795 shares 175,695 191,071
Pharmactcl Hldrs Common Stock - 400 shares 36,452 39,400
Pharmacia Corp. Common Stock - 200 shares 9,600 8,530
Philip Morris Cos Inc. Common Stock - 2,405 shares 93,183 110,253
Pitney Bowes Inc. Common Stock - 100 shares 6,305 3,761
Pixar Common Stock - 200 shares 8,190 7,192
Plantronics Inc. Common Stock - 700 shares 22,148 17,948
Portugal Telecom Common Stock - 1,662 shares 14,652 12,648
Power-One Inc. Common Stock - 100 shares 4,650 1,041
Price T Rowe Group Inc. Common Stock - 50 shares 1,903 1,737
Procter & Gamble Common Stock - 2,000 shares 112,336 158,260
27
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Providian Finl Corp. Common Stock - 3,200 shares $ 18,160 $ 11,360
Proxim Inc. Common Stock - 100 shares 1,806 992
Psinet Inc. Common Stock - 105 shares 5,064 1
Qlogic Corp. Common Stock - 200 shares 9,470 8,902
Qualcomm Inc. Common Stock - 296 shares 36,625 14,948
Quest Diagnostics Inc. Common Stock - 63 shares 4,222 4,518
RSA Security Inc. Common Stock - 300 shares 13,023 5,238
RF Micro Devices Inc. Common Stock - 840 shares 33,542 16,153
Railamerica Inc. Common Stock - 533 shares 5,743 7,707
Rambus Inc. Common Stock - 105 shares 9,500 839
Real Networks Inc. Common Stock - 500 shares 4,370 2,970
Red Hat Inc. Common Stock - 200 shares 3,013 1,420
Redback Networks Inc. Common Stock - 867 shares 10,780 3,425
Repsol Common Stock - 650 shares 8,430 9,445
Rio Tinto Ltd. Common Stock - 96 shares 5,943 7,152
Rite Aid Corporation Common Stock - 250 shares 800 1,265
Riverstone Networks Inc. Common Stock - 256 shares 4,054 4,250
Roche Hldg Ltd. Common Stock - 83 shares 5,976 5,918
Rogue Wave Software Common Stock - 200 shares 2,028 640
Rolls-Royce Plc. Common Stock - 503 shares 6,526 5,935
Ross Store Inc. Common Stock - 130 shares 3,920 4,170
Roxio Inc. Common Stock - 114 shares 6,546 1,887
SBC Communications Inc. Common Stock - 1,000 shares 28,380 39,170
Saba Software Inc. Common Stock - 150 shares 1,550 783
Safeguard Scientifics Common Stock - 1,100 shares 39,015 3,850
St. Mary Ld & Expl Co. Common Stock - 250 shares 3,410 5,298
28
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
San Paolo-Imi Sps Common Stock - 220 shares $ 7,112 $ 4,816
Sandisk Corp. Common Stock - 225 shares 16,903 3,240
Sanmina-Sci Corp. Common Stock - 635 shares 9,786 12,637
Sap Aktiengesellschaft Common Stock - 200 shares 8,289 6,386
Save the Worldair Inc. Common Stock - 530 shares 2,889 270
Schering Plough Corp. Common Stock - 100 shares 4,950 3,581
Schlumberger Ltd. Common Stock - 485 shares 25,647 26,651
Schwab Charles Corp. Common Stock - 180 shares 5,129 2,785
Scios Inc. Common Stock - 600 shares 5,352 14,262
Scottish Power Common Stock - 500 shares 15,217 10,850
Sector Spdr Consumers Stpl. Common Stock - 100 shares 2,761 2,540
Sector Spdr Technology Common Stock - 125 shares 4,548 3,000
Sempra Energy Common Stock - 495 shares 11,249 12,152
Serologicals Corp. Common Stock - 150 shares 3,300 3,225
Shell Trns & Trdng Common Stock - 357 shares 8,575 14,798
Sicor Inc. Common Stock - 246 shares 6,053 3,857
Siebel Sys Inc. Common Stock - 1,850 shares 44,337 51,763
Silicon Graphics Inc. Common Stock - 2,948 shares 11,586 6,191
Societe Generale France Common Stock - 1,560 shares 9,240 17,238
Sohu Com Inc. Common Stock - 500 shares 2,325 600
Solectron Corp. Common Stock - 2,200 shares 81,781 24,816
Sony Corp. Common Stock - 325 shares 23,217 14,658
Sorrento Networks Corp. Common Stock - 200 shares 7,750 718
Sonus Networks Inc. Common Stock - 180 shares 811 832
Southwest Airlines Co. Common Stock - 275 shares 4,024 5,082
Sovran Self Storage Inc. Common Stock - 5,000 shares 91,750 155,750
29
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Sprint Corp. Common Stock - 800 shares $ 21,311 $ 16,064
Starbucks Corp. Common Stock - 319 shares 6,663 6,077
Statoil ASA Common Stock - 1,001 shares 6,677 6,557
Stellent Inc. Common Stock - 38 shares 1,549 1,123
Stemcells Inc. Common Stock - 1,000 shares 4,538 3,490
Stryker Corp. Common Stock - 120 shares 6,281 7,004
Sun Microsystems Inc. Common Stock - 11,066 shares 293,565 136,112
Sunguard Data Sys Inc. Common Stock - 181 shares 4,498 5,236
Superconductor Technologies Common Stock - 100 shares 3,725 650
Supergen Inc. Common Stock - 2,587 shares 58,904 37,046
Symantec Corp. Common Stock - 153 shares 9,866 10,148
Symyx Tech Inc. Common Stock - 200 shares 4,650 4,248
Syngenta Common Stock - 711 shares 6,577 7,537
TDK Corp. Common Stock - 190 shares 15,221 9,215
TJX Cos Inc. Common Stock - 187 shares 6,750 7,454
Telecom Italia Common Stock - 130 shares 5,976 11,115
Telefonos M SA RP L Common Stock - 1,338 shares 18,128 46,857
Tellabs Inc. Common Stock - 200 shares 12,450 2,992
Teraforce Tech Corp. Common Stock - 4,200 shares 18,118 353
Texas Instruments Common Stock - 7,700 shares 478,651 215,600
3Com Corp. Common Stock - 110 shares 1,134 702
Tibco Software Inc. Common Stock - 105 shares 8,897 1,568
Tiffany & Co. Common Stock - 141 shares 4,299 4,437
Topps Inc. Common Stock - 500 shares 5,335 6,075
Total SA Common Stock - 265 shares 8,246 18,614
Toyota Motor Corp. Common Stock - 70 shares 5,935 3,567
30
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Trans World Airlines Inc. Common Stock - 500 shares $ 2,888 $ 5
Transcanada Pipeline Common Stock - 500 shares 10,700 6,255
Transmeta Corp. Common Stock - 140 shares 6,236 321
Triangle Pharms Inc. Common Stock - 1,000 shares 6,913 4,010
Trinity Biotech Common Stock - 2,000 shares 3,825 3,040
Tyco Intl. Ltd. Common Stock - 200 shares 10,231 11,780
UAL Corp. Common Stock - 200 shares 9,425 2,700
USX Marathon Group Common Stock - 1,500 shares 40,139 45,000
US Oncology Inc. Common Stock - 1,100 shares 8,822 8,294
USA Education Inc. Common Stock - 113 shares 7,669 9,494
Unilever Common Stock - 636 shares 26,043 36,640
Union Pacific Corp. Common Stock - 206 shares 8,775 11,740
United Parcel Services Common Stock - 315 shares 21,838 17,168
US Air Group Inc. Common Stock - 1,000 shares 16,600 6,340
United Health Group Inc. Common Stock - 600 shares 17,061 42,462
Universal Health Realty Common Stock - 800 shares 15,528 18,800
Universal Health Svcs Common Stock - 200 shares 4,839 8,556
Univision Communications Common Stock - 429 shares 14,372 17,357
Unocal Corp. Common Stock - 545 shares 19,229 19,658
Upgrade Intl. Corp. Common Stock - 50 shares 3,354 39
Valero Refng & Mktng Co. Common Stock - 121 shares 5,129 4,613
Varco Intl Inc. Common Stock - 1,000 shares 8,100 14,980
Vast Solutions Inc. Common Stock - 90 shares 4,620 -
Ventro Corp. Common Stock - 550 shares 11,625 215
Verisign Inc. Common Stock - 433 shares 47,011 16,471
Verizon Communications Common Stock - 3,889 shares 135,245 184,549
31
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Veritas Software Co. Common Stock - 144 shares $ 7,308 $ 6,456
Viacom Inc. Common Stock - 1,050 shares 30,786 46,463
Viacom Inc. CL B Common Stock - 390 shares 23,520 17,219
Viador Inc. Common Stock - 1,000 shares 19,688 60
Vicon Indust Inc. Common Stock - 500 shares 2,075 2,280
Visionics Corporation Common Stock - 100 shares 1,578 1,443
Visteon Corp. Common Stock - 26 shares 167 391
Visx Inc. Common Stock - 200 shares 5,350 2,650
Vivendi Universal Common Stock - 254 shares 19,922 13,663
Vixel Corp. Common Stock - 500 shares 3,700 925
Vodavi Technology Inc. Common Stock - 500 shares 2,684 653
Vodafone Grp Common Stock - 550 shares 25,898 14,124
Vulcan Materials Co. Common Stock - 165 shares 6,980 7,910
Wachovia Corp. Common Stock - 495 shares 19,874 15,523
Wal mart Stores Inc. Common Stock - 1,765 shares 90,681 101,576
Washington Mut Inc. Common Stock - 150 shares 4,893 4,905
Westell Technologies Inc. Common Stock - 300 shares 10,793 792
Williams Sonoma Inc. Common Stock - 160 shares 5,828 6,864
Wind Riv Sys Inc. Common Stock - 1,450 shares 51,518 25,970
Worldcom Inc. Common Stock - 6,760 shares 155,444 95,181
MCI Group-Worldcom Inc. Common Stock - 1,114 shares 14,893 14,148
Worldwide Restaurant Common Stock - 2,000 shares 5,088 2,380
XO Communications Common Stock - 1,680 shares 11,249 161
Xcel Energy Inc. Common Stock - 183 shares 4,684 5,076
Xilinx Inc. Common Stock - 150 shares 10,278 5,858
Xerox Corp. Common Stock - 966 shares 21,852 10,066
32
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Yahoo Inc. Common Stock - 1,016 shares $ 63,468 $ 18,024
Zimmer Holdings Inc. Common Stock - 40 shares 893 1,223
Zurich Finl Svcs Common Stock - 380 shares 20,309 8,854
Global Crossing Ltd. Preferred Stock - 145 shares 13,321 181
Repsol Intl Capital Ltd. Preferred Stock - 800 shares 20,000 18,360
AES Trust VII Preferred Stock - 315 shares 16,340 8,978
ABN Amro Preferred Stock - 1,000 shares 25,517 25,170
Alabama Pwr Preferred Stock - 400 shares 10,000 9,988
Allstate Corporation Preferred Stock - 2,000 shares 50,000 50,400
American Exp Co. Preferred Stock - 1,000 shares 25,000 25,230
BankAmerica Preferred Stock - 1,000 shares 25,000 25,420
Bethlehem Steel Preferred Stock - 173 shares 8,432 279
Bank of New York Preferred Stock - 1,000 shares 25,000 25,280
Calpine Captl Trst Preferred Stock - 205 shares 11,778 6,663
Duke Energy Preferred Stock - 1,000 shares 25,000 25,050
Electronic Data Systems Preferred Stock - 155 shares 7,761 8,262
Enterprise Cap Tr I Preferred Stock - 600 shares 15,000 14,760
Enterprise Cap Tr III Preferred Stock - 1,000 shares 25,000 23,800
Equity Office Properties Preferred Stock - 200 shares 7,900 9,160
Equity Residential Properties Preferred Stock - 955 shares 23,254 24,162
Georgia Pwr Preferred Stock - 400 shares 10,000 9,900
Harris Preferred Cap Cor Preferred Stock - 400 shares 10,000 9,840
Hartford Life Preferred Stock - 1,000 shares 25,517 25,050
Host Marriott Preferred Stock - 240 shares 9,226 10,311
International Paper Preferred Stock - 190 shares 8,509 8,480
KCPL Financing I Preferred Stock - 400 shares 10,000 10,092
33
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
MCI Capital Preferred Stock - 1,500 shares $ 38,750 $ 36,750
* Merrill Lynch Capital Tr I Preferred Stock - 3,000 shares 75,000 78,360
* Merrill Lynch Capital Tr II Preferred Stock - 400 shares 10,000 10,552
* Merrill Lynch Pfd Sers III Preferred Stock - 2,000 shares 50,000 49,900
Met Life Inc. Preferred Stock - 85 shares 4,440 8,432
NB Capital Trust I Preferred Stock - 1,750 shares 45,023 43,785
National Australia Bank Preferred Stock - 790 shares 20,181 23,700
Newell Financial Trust I Preferred Stock - 220 shares 10,306 8,188
Plc Capital Trust Preferred Stock - 600 shares 15,000 14,880
PP&L Capital Trust Preferred Stock - 1,100 shares 27,500 28,325
Pwg Capital Trust II Preferred Stock - 800 shares 20,705 20,120
Pacificorp Preferred Stock - 900 shares 23,171 21,600
Placer Dome Inc. Preferred Stock - 2,000 shares 51,625 47,960
Potomac Elec Pwr Co. Preferred Stock - 900 shares 22,500 22,419
Prudential Financial Inc. Preferred Stock - 115 shares 6,054 6,693
Raytheon Company Preferred Stock - 120 shares 6,004 6,690
Reliastar Financing Preferred Stock - 2,200 shares 55,721 55,880
Sealed Air Corp. Preferred Stock - 245 shares 8,146 10,658
Simon Property Group Inc. Preferred Stock - 1,500 shares 37,500 39,000
Suiza Capital Trust II Preferred Stock - 150 shares 5,941 6,189
UDS Capital I Preferred Stock - 500 shares 12,500 12,350
US Bancorp Capital II Preferred Stock - 1,100 shares 27,500 27,379
Union Pacific Cap Trust Preferred Stock - 175 shares 7,755 8,714
Unit Washtn Mut Cap TR I Preferred Stock - 135 shares 7,665 6,404
Weingarten Realty Invstr. Preferred Stock - 1,000 shares 25,000 24,900
Aim Europe Growth Fund 16,932 9,897
34
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Aim America Value Fund $ 189,100 $ 178,483
Aim Global Telecomm Fund 55,222 13,378
Aim Constellation Fund 29,941 19,684
Aim Aggressive Growth Fund 21,668 14,244
Aim Blue Chip Fund 320,145 241,935
Aim High Yield Fund 13,245 6,833
Aim Value Fund 32,981 22,866
Aim Balanced Fund 22,544 21,498
Alger Growth Portfolio 2,878 2,112
Alger Midcap Growth 3,088 2,922
Alger Retirement Fund 25,000 25,960
Alliance Premier Growth Fund Class A 170,270 107,757
Alliance Premier Growth Fund ADV CL 47,806 33,547
Alliance Technology Fund 82,230 60,703
Captial World Growth and Income Fund 2,517 2,744
Davis NY Venture Fund 122,738 120,141
Federated Aggresive Growth Fund 18,527 7,118
Federated European Growth Fund 17,053 11,375
Federated International Small Company Fund 45,000 20,407
Fidelity Equity Portfolio Growth Fund 53,164 35,274
Fidelity Series I Mid Cap Fund 10,926 8,277
Fidelity High Yield Portfolio 66,962 44,903
Franklin Calif 250 Growth Fund 279,863 188,479
Ivy Fund Emerging Growth Fund 81,674 28,115
John Hancock Growth & Income Fund 188,476 130,878
John Hancock High Yield Bond Fund 35,968 21,465
35
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
John Hancock Sovereign Bond Fund $ 59,516 $ 57,713
John Hancock Pacific Basin Equity Fund 12,399 10,640
John Hancock Global Technology Fund 13,500 4,236
Lord Abb Dev Growth Fund 6,582 6,513
MFS Total Return Fund 12,343 9,189
MFS High Income Fund 56,578 39,863
MFS Over-the-Counter Fund 3,896 2,537
Massachusetts Investors Inv Growth Stk Fund 154,282 118,621
Massachusetts Investors Investors Trust 40,314 33,615
* Merrill Lynch Focus Value Fund 16,565 15,754
* Merrill Lynch Euro Fund 36,529 27,318
* Merrill Lynch Equity Income Fund 11 9
* Merrill Lynch Global Allocation Fund 503,326 482,186
* Merrill Lynch Fundamentl Growth Fund 58,016 42,801
* Merrill Lynch Global Value Fund 93,405 74,653
* Merrill Lynch Global Tech Fund 216,901 113,141
* Merrill Lynch Latin America Fund 25,628 19,154
* Merrill Lynch Dragon Fund 33,414 15,774
* Merrill Lynch Healthcare Fund 19,115 18,008
* Merrill Lynch Basic Value Fund CL A 586,634 485,789
* Merrill Lynch Basic Value Fund CL B 68,267 54,143
* Merrill Lynch Balanced Capital Fund 264,352 223,682
* Merrill Lynch Small Cap Value Fund 147,355 156,401
* Merrill Lynch Global Growth Fund 433,000 359,451
* Merrill Lynch S&P 500 Index Fund 212,773 221,047
* Merrill Lynch Small Cap Index Fund 1,213 1,212
36
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
* Merrill Lynch Pacific Fund $ 22,678 $ 17,218
* Merrill Lynch Corp Bond High Income Fund 140,727 90,214
* Merrill Lynch Bond Fund 37,502 37,268
Munder Framlingtn Health Care Fund 62,254 54,236
Munder NetNet Fund 411,045 151,639
Oppenheimer International Growth Fund 5,635 3,759
Oppenheimer Global Fund 25,000 25,342
PIMCO Capital Appreciation Fund 16,975 11,849
PIMCO Renaissance Fund 181,624 184,927
PIMCO Innovation Fund 123,310 58,398
PIMCO High Yield Fund 22,883 19,312
PIMCO Total Return Fund 6,225 6,553
Pilgrim Intl Small-Cap Gr Fund 55,379 30,870
Seligman Communications & Information Fund 56,169 41,029
State Street Aurora Fund 175,000 200,185
State Street Government Income Fund 63,740 61,904
Templeton Developing Markets Trust 16,957 12,391
Templeton Foreign Fund 80,991 73,964
Van Kampen American Cap Fund 66,932 31,419
Washington Mutual Investors Fund Inc. 52,449 44,733
United States Treasury Note 8.125% Due 08/15/21 93,736 98,344
United States Treasury Bond 6.000% Due 02/15/26 21,047 20,578
United States Treasury Note 6.500% Due 05/15/05 147,046 146,752
United States Treasury Note 5.625% Due 02/15/06 29,390 30,554
United States Treasury Note 5.875% Due 11/15/04 45,714 45,513
United States Treasury Note 6.500% Due 02/15/10 28,254 27,442
37
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Alza Corp. Corporate Bond - 10,000 shares 0% Due 07/28/20 $ 7,185 $ 8,310
Amazon.com Corporate Bond - 13,000 shares 4.750% Due 02/01/09 6,399 6,617
Anadarko Petroleum Corp. Corporate Bond - 16,000 shares 0% Due 03/07/20 11,194 11,221
Anixter International Lyons Corporate Bond - 31,000 shares 0% Due 06/28/20 7,766 8,922
Arrow Electronic Inc. Corporate Bond - 18,000 shares 0% Due 02/21/21 8,015 8,557
Atmel Corp. Corporate Bond - 11,000 shares 0% Due 04/21/18 6,471 5,656
Carnival Corp. Corporate Bond - 4,000 shares 2.000% Due 04/15/21 3,766 3,994
Cendant Corp. Corporate Bond - 11,000 shares 0% Due 02/13/21 8,262 8,076
Clear Channel Communications Corporate Bond - 10,000 shares 1.500% Due 12/01/02 10,043 9,541
Conexant Systems inc. Corporate Bond - 9,000 shares 4.000% Due 02/01/07 7,389 4,176
Countrywide Corporate Bond - 8,000 shares 0% Due 02/08/31 5,732 5,790
Devon Energy Corporation Corporate Bond - 9,000 shares 4.900% Due 08/15/08 8,823 9,276
Devon Energy Corporation Corporate Bond - 15,000 shares 0% Due 06/27/20 7,645 6,804
Diamond Offshore Drilling Inc. Corporate Bond - 9,000 shares 1.500% Due 04/15/31 8,050 8,299
First Data Corporation Corporate Bond - 7,000 shares 2.000% Due 03/01/08 7,542 7,368
Health Management Assoc. Corporate Bond - 12,000 shares 0.250% Due 08/16/20 8,094 8,311
Interim Services Inc. Corporate Bond - 7,000 shares 4.500% Due 06/01/05 6,169 5,613
Jones Apparel Group Corporate Bond - 14,000 shares 0% Due 02/01/21 7,867 7,217
Liberty Media Group Corporate Bond - 7,000 shares 4.000% Due 11/15/29 7,782 5,207
Lowe's Cos Inc. Corporate Bond - 11,000 shares 0% Due 02/16/22 7,926 9,295
Masco Corp. Corporate Bond - 19,000 shares 0% Due 07/20/31 7,640 7,839
News America Inc. Corporate Bond - 16,000 shares 0% Due 02/28/21 8,071 7,886
PMI Group Inc. Corporate Bond - 7,000 shares 2.500% Due 07/15/21 7,257 7,430
Royal Caribbean Cruise Corporate Bond - 37,000 shares 0% Due 02/02/21 14,496 11,840
Solectron Corporation Corporate Bond - 15,000 shares 0% Due 05/08/20 10,275 7,970
Thermo Electron Corp. Corporate Bond - 9,000 shares 4.000% Due 01/15/05 7,808 8,510
38
ALZA CORPORATION TAX DEFERRAL INVESTMENT PLAN
EIN 77-00142070 PLAN NO. 002
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2001
( a ) ( b ) ( c ) ( d ) ( e )
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------ ------------------------------------- -------------------------------------------- ----------- ------------
Times Mirror Company Corporate Bond - 14,000 shares 0% Due 04/15/17 $ 6,163 $ 8,112
Tyco Internatl Ltd. Corporate Bond - 10,000 shares 0% Due 11/17/20 7,812 7,847
Telefonos DE Mexico S.A. Corporate Bond - 6,000 shares 4.250% Due 06/15/04 7,705 7,651
CMA Money Fund 6,680,064 6,680,064
Cedar Fair Dep Unt Limited Partnership 100,125 123,950
Kaneb Pln Prt Sr Prf Limited Partnership 108,400 163,920
Kinder Morgan Energy Partners Limited Partnership 3,544 7,564
* Participant Loans 6% - 10.5% - 917,581
* Represents parties-in-interest
39
CONSENT OF MORRIS, DAVIS & CHAN, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (No. 333-87736) of Johnson & Johnson Corporation pertaining to the ALZA
Corporation Tax Deferral Investment Plan of our report dated April 17, 2002 with
respect to the financial statements and schedules of the ALZA Corporation Tax
Deferral Investment Plan included in this Annual Report (Form 11-K) for the year
ended December 31, 2001.
Morris, Davis & Chan LLP
Oakland, California
June 25, 2002