UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
------------------------------
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2004
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-3215
------------------------------
JOHNSON & JOHNSON
SAVINGS 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)
REQUIRED INFORMATION
Item 4. Financial Statements and Exhibits
Financial statements prepared in accordance with the financial reporting
requirements of ERISA filed herewith are listed below in lieu of the
requirements of Items 1 to 3.
Report of Independent Registered Public Accounting Firm
Financial Statements:
Statements of Net Assets Available for Benefits
Statement of Changes in Net Assets Available for Benefits
Notes to Financial Statements
Supplemental Schedule*:
Schedule H, line 4i - Schedule of Assets
(Held at End of Year)
*Other supplemental schedules required by Section 2520.103.10 of the Department
of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have
been omitted because they are not required or are not applicable.
Exhibits:
23. Consent of PricewaterhouseCoopers LLP, dated June 24, 2005
SIGNATURES
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.
JOHNSON & JOHNSON SAVINGS PLAN
By: /s/ R. J. Darretta
------------------
R. J. Darretta
Chairman, Pension Committee
June 27, 2005
JOHNSON & JOHNSON SAVINGS PLAN
------------------
FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 2004 AND 2003
JOHNSON & JOHNSON
SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
DECEMBER 31, 2004 AND 2003
PAGE(s)
Report of Independent Registered Public Accounting Firm 1
Financial Statements:
Statements of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4 - 12
Supplemental Schedule*:
Schedule H, line 4i - Schedule of Assets (Held at
End of Year) 13
* Other supplemental schedules required by Section 2520.103.10 of the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under ERISA have been omitted because they are not required or are not
applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Participants, the Pension Committee
and the Compensation & Benefits Committee of the
Johnson & Johnson Savings Plan:
In our opinion, the accompanying statements of net assets available for benefits
and the related statement of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Johnson & Johnson Savings Plan (the "Plan") as of December 31, 2004 and
2003, and the changes in net assets available for benefits for the year ended
December 31, 2004 in conformity with accounting principles generally accepted in
the United States of America. 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 of these
statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States). 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, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule H, line 4i -
Schedule of Assets (Held at End of Year) as of December 31, 2004 is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. This supplemental schedule is the
responsibility of the Plan's management. The supplemental schedule has been
subjected to the auditing procedures applied in the audits 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.
/s/ PricewaterhouseCoopers LLP
Florham Park, New Jersey
June 24, 2005
-1-
JOHNSON & JOHNSON
SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2004 AND 2003
2004 2003
ASSETS
Interest in Johnson & Johnson Pension
and Savings Plans Master Trust, at fair value $5,661,156,588 $4,796,232,682
Participant loans 58,418,387 57,570,698
-------------- --------------
Total investments 5,719,574,975 4,853,803,380
Receivables
Employee contributions 12,848,207 12,019,586
Employer contributions 4,531,522 4,280,247
Due from Johnson & Johnson - 1,743,422
-------------- --------------
Total receivables 17,379,729 18,043,255
-------------- --------------
Total assets 5,736,954,704 4,871,846,635
============== ==============
LIABILITIES
Accrued interest 466,126 1,179,958
Accrued expenses 3,184,101 1,594,638
Current portion of long-term note payable to Johnson &
Johnson 5,919,055 9,064,538
Long-term note payable to Johnson & Johnson - 5,919,055
-------------- --------------
Total liabilities 9,569,282 17,758,189
============== ==============
Net assets available for benefits $5,727,385,422 $4,854,088,446
============== ==============
The accompanying notes are an integral part of these financial statements.
-2-
JOHNSON & JOHNSON
SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2004
2004
ADDITIONS TO NET ASSETS ATTRIBUTED TO
INVESTMENT INCOME
Plan's interest in the Johnson & Johnson Pension
and Savings Plans Master Trust net appreciation $ 621,171,447
Interest 51,321,467
Dividends 59,006,334
Contributions
Employee contributions 377,817,059
Employer contributions 92,799,725
Asset transfers due to acquisitions 37,992,339
--------------
Total additions 1,240,108,371
--------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO
Benefits paid to participants 351,631,934
Interest expense 634,691
Administrative expenses 11,055,701
Employee Stock Ownership Plan transfers 3,489,069
--------------
Total deductions 366,811,395
--------------
Net increase 873,296,976
--------------
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 4,854,088,446
--------------
End of year $5,727,385,422
==============
The accompanying notes are an integral part of these financial statements.
-3-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE PLAN
GENERAL
The Johnson & Johnson Savings Plan (the "Plan") is a participant directed
defined contribution plan which was established on June 1, 1982 for
eligible salaried and non-union hourly employees of Johnson & Johnson
("J&J" or the "Company") and certain domestic subsidiaries. The Plan was
designed to enhance the existing retirement program of eligible employees.
The funding of the Plan is made through employee and Company
contributions. Prior to January 1, 2003, the assets of the Plan were
maintained in the Johnson & Johnson Savings Plan Trust and the Johnson &
Johnson Pension Trust Fund, and transactions therein were executed by the
trustee, State Street Trust Company ("State Street" or "Trustee"). The
Plan's interests in the Savings Plan Trust and the Pension Trust Fund were
allocated to the Plan based upon the total of each participant's share in
the Master Trust accounts. As of January 1, 2003, the Johnson & Johnson
Savings Plan Trust and Johnson & Johnson Pension Trust Fund merged to form
a single Master Trust, the Johnson & Johnson Pension and Savings Plans
Master Trust (the "Trust"). The Plan's interest in the Johnson & Johnson
Pension and Savings Plans Master Trust is allocated to the Plan based upon
the total of each participant's share in the Trust.
This brief description of the Plan is provided for general information
purposes only. Participants should refer to the Plan document for complete
information.
EMPLOYEE STOCK OWNERSHIP PLAN
Effective January 1, 1991, the Company implemented a Leveraged Employee
Stock Ownership Plan ("ESOP") to enhance its existing 401(k) plan. The
ESOP is a leveraged employee stock ownership plan and is designed to
comply with Section 4975(e)(7) and the regulations thereunder of the
Internal Revenue Code of 1986, as amended, and is subject to the
applicable provisions of the Employee Retirement Income Security Act of
1974, as amended. The ESOP is used to fund an additional 25% company match
of employee contributions (referred to herein as the "ESOP contribution").
Additionally, the Company may elect to fund the employer 50% match of
employee directed contributions with ESOP leveraged shares.
Initial funding for the ESOP was made through an advance from J&J of $100
million, which was used to purchase 1,554,800 shares of J&J common stock
on the open market (which equates to 12,438,400 shares when adjusted for
subsequent stock splits) (See Note 7). Of these shares, 465,624 (adjusted
for stock splits) remain unallocated as of December 31, 2004. As of
December 31, 2004, the net assets of the unallocated portion are
$11,981,969, while the net assets of the allocated portion are
$512,629,008. Shares are allocated to Plan participants under a formula
set forth in the ESOP note agreement relating to the advance from J&J.
Each participant is entitled to exercise voting rights attributable to the
shares allocated to his or her account. The Company is entitled to
exercise voting rights attributable to unallocated shares.
CONTRIBUTIONS
In general, full-time salaried employees and certain non-union hourly,
part-time and temporary employees can contribute to the Plan, as there is
no service requirement for employee contributions.
-4-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Contributions are made to the Plan by participants through payroll
deductions and by the Company on behalf of the participants. Participating
employees may contribute a minimum of 3% up to a maximum of 35% of
eligible pay, as defined by the Plan. Contributions can be pre-tax,
post-tax or a combination of both. Pre-tax contributions may not exceed
the smaller of (i) 35% of a participant's base salary or (ii) $13,000 for
2004. The maximum contributions to a participant's account, including
participant pre-tax and post-tax contributions and the employer match is
$41,000 for 2004.
Effective July 1, 2002, participants age 50 and over are eligible to
contribute extra pre-tax contributions ("catch-up contribution") above the
annual IRS limitations up to $3,000 in 2004. Participants can elect an
amount to be contributed from each paycheck as their catch-up
contribution. This amount will be in addition to the pre-tax and post-tax
contribution percentages that participants have elected.
After one year of service, participants receive an employer matching
contribution equal to 75% of the first 6% of a participant's
contributions. The Company match is composed of cash (50%) and shares of
Johnson & Johnson common stock (25%), defined as the ESOP contribution.
All contributions, with the exception of the ESOP contribution, are
invested in any of nine investment funds as selected by the participating
employees. Beginning in April of 2002, participants have the option to
elect that the Company stock matching contribution be made as a cash
contribution thus being diversified from ESOP into any of the other
investment funds chosen by the participant. ESOP shares are released from
the unallocated portion of the ESOP each February following the payment of
the loan (see Note 7), in accordance with the ESOP Trust Agreement. Shares
released, in accordance with the ESOP note agreement, may be more or less
than shares allocated to participants.
INVESTMENTS
Participants may invest in one or more of the nine investment funds
offered by the Plan. The investment mix chosen by the participant will
apply to employee and Company matching contributions. Rollover
contributions are invested at the election of the participant.
In the third quarter of 1998, Johnson & Johnson incorporated a "dividend
pass-through" feature into the Plan. Up through 2001, the pass-through was
distributed to each participant via check. Effective January 1, 2002,
dividends are automatically reinvested in the J&J Stock Fund unless
specific elections are made to receive payment via check. Participants
who had their dividends reinvested in the J&J Stock Fund had an
opportunity in early 2002 to receive those 2001 dividends in cash. The
eligibility to receive a dividend pass-through is contingent on the
ownership of shares in the Johnson & Johnson Stock Fund, which does not
include shares owned in the Employee Stock Ownership Plan Fund. The 2004
dividend pass-through amount paid to participants of $2,398,100 is
reflected as benefits paid to participants in the Statement of Changes in
Net Assets Available for Benefits.
All other dividend and interest income is reinvested by the Trustee.
VESTING
A participant's interest in their account, including participant
contributions, Company contributions and earnings thereon, will be at all
times fully vested. As a result, there are no forfeitures under the Plan.
-5-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
PAYMENT OF BENEFITS
Benefits are paid to participants upon termination of employment,
long-term disability or retirement. Participants can elect to defer
payment until age 70 1/2 if account balances are greater than $5,000.
Distributions are paid either in a lump sum payment or installment
payments made on a monthly, quarterly, or annual basis. Installment
payments are made over a period of years selected by the participant.
A participant's account may be distributed to their beneficiaries in lump
sum, in installments or maintained in the Trust upon the participant's
death only if the beneficiary is a spouse. Otherwise, it is paid to the
beneficiary in a lump sum.
Participants are allowed to withdraw an amount equal to their pre-August
1, 2003 post-tax contributions and earnings thereon, and unmatched
post-tax contributions made after August 1, 2003 by the employee and
earnings thereon at any time. Participants may withdraw pre-tax
contributions, post-tax matched contributions, and the employer match
after August 1, 2003, only upon meeting certain hardship conditions. The
benefits to which participants are entitled are the amounts provided by
contributions (Company and participant) and investment earnings thereon,
including net realized and unrealized gains and losses which have been
allocated to the participant's account balance. Participants have the
option of receiving all or part of their balance in the Johnson & Johnson
Stock Fund as either cash or in shares of Johnson & Johnson common stock
(plus cash for fractional shares) for distributions other than a hardship.
ADMINISTRATIVE EXPENSES
All third party administrative expenses are paid by the Plan, unless
otherwise provided for by the Company.
PARTICIPANT LOANS
Participants may borrow up to a maximum of 50% of their account balance.
The minimum loan amount is $1,000 and the maximum amount of outstanding
loans cannot exceed $50,000. Loans bear an interest rate of prime plus 1%,
are repayable within one to five years and are collateralized by the
balance in the participant's account. Principal and interest is paid
ratably through payroll deductions for active employees. Loans must be
paid within two months following retirement or termination of employment
with the Company. If the loan is not repaid in full, the unpaid balance,
plus accrued interest, will be deducted from the participant's account
balance and reported to the IRS as a distribution.
TERMINATION
Although it has not expressed an intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of a
partial or full Plan termination, all Plan funds must be used exclusively
for the benefit of the Plan participants.
-6-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method
of accounting in accordance with accounting principles generally accepted
in the United States of America.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's interest in the Trust is stated at fair value. Generally, it
represents securities traded on a national securities exchange, which are
valued at the last reported sales price on the last business day of the
year. Securities not traded on a national securities exchange are valued
using external pricing vendors based on the frequency of their valuations.
Benefit responsive guaranteed and synthetic investment contracts are
recorded at contract value, which approximates fair value (Note 5).
As the investment funds contain various underlying assets such as stock
and short-term investments, the participant's account balance is reported
in units of participation, which allows for immediate transfers in and out
of the funds. The purchase or redemption price of the units is determined
by the trustee, based on the current market value of the underlying assets
of the funds. Each fund's net asset value is the value of a single unit,
which is computed by adding the value of the fund's investments, cash and
other assets, and subtracting liabilities, then dividing the result by the
number of units outstanding.
Purchases and sales of securities are recorded on a trade-date basis.
Gains and losses on the sale of investment securities are determined on
the average cost method. Dividend income is recorded on the ex-dividend
date. Interest income is recorded as earned on an accrual basis.
NET APPRECIATION (DEPRECIATION)
The Plan presents in the Statement of Changes in Net Assets Available for
Benefits the Plan's interest in the Trust and includes the net
appreciation (depreciation) in the fair value of investments held in the
Trust, which consists of unrealized appreciation (depreciation) of the
underlying investments and realized gains and losses on sales of
investments.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
USE OF ESTIMATES
The preparation of the Plan's financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of net assets
available for benefits at the date of the financial statements and the
changes in net assets available for benefits during the reporting period
and, when applicable, disclosures of contingent assets and liabilities at
the date of the financial statements. Actual results could differ from
those estimates.
-7-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
RISK AND UNCERTAINTIES
The Plan provides for various investment options in funds which can
invest in a combination of equity, fixed income securities and other
investments. Investments are exposed to various risks, such as interest
rate, market and credit. Due to the level of risk associated with certain
investments, it is at least reasonably possible that changes in risks in
the near term could materially affect participants' account balances and
the amounts reported in the Statement of Net Assets Available for Benefits
and the Statement of Changes in Net Assets Available for Benefits.
RECLASSIFICATION
Certain prior year amounts have been reclassified to conform to current
year presentation.
3. NON-PARTICIPANT DIRECTED INVESTMENTS
The ESOP includes participant directed and non-participant directed
investments. Information about the ESOP's net assets and the significant
components of the changes in net assets of this fund is as follows:
AS OF DECEMBER 31,
2004 2003
-------------------------------- --------------------------------
Allocated Unallocated Allocated Unallocated
Assets
Investments at fair value $ 517,503,588 $ 13,492,570 $ 410,871,512 $ 61,521,889
Receivables 1,510,601 (1,510,601) 38,687,683 (38,687,683)
Liabilities (6,385,181) - (14,420,129)
------------- ------------- ------------- -------------
Net assets
J&J common stock $ 512,629,008 $ 11,981,969 $ 449,559,195 $ 8,414,077
------------- ------------- ------------- -------------
DECEMBER 31,
2004
-----------------------------
Allocated Unallocated
Changes in net assets
Investment income $ 8,744,429 $ 659,960
Net appreciation in fair value 96,824,353 2,494,727
Benefits paid to participants (26,657,561) -
Transfers to participant-directed investments (15,841,408) 1,047,896
Interest expense - (634,691)
------------ ------------
$ 63,069,813 $ 3,567,892
============ ============
-8-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
4. INVESTMENTS IN PLAN MASTER TRUSTS
Effective January 1, 2003, the Johnson & Johnson Savings Plan Trust merged
with the Johnson & Johnson Pension Trust Fund to form a single Master
Trust, the Johnson & Johnson Pension and Savings Plans Master Trust. The
Plan holds approximately 52.71% of the Trust's net assets as of December
31, 2004 and 2003.
Net assets, income, and expenses are allocated to the Plan based on the
total of each participant's share in the respective funds.
AS OF DECEMBER 31,
--------------------------------------
2004 2003
Investments at fair value
Short term investment funds $ 551,013,386 $ 251,872,480
U.S. Government and Agency securities 856,971,117 688,955,151
Corporate debt 313,196,278 305,698,696
Preferred stocks 11,061,328 10,536,822
Common stocks 6,822,053,563 4,890,705,529
Equities and other 1,348,404,513 2,074,484,099
Investments at contract value
Deposits in group annuity contracts and synthetic GICs 973,552,848 924,152,802
---------------- ----------------
Total Master Trust investments 10,876,253,033 9,146,405,579
Receivables 75,006,869 179,120,628
Liabilities (211,812,708) (230,499,957)
---------------- ----------------
Net assets held in Master Trust, at fair value $ 10,739,447,194 $ 9,095,026,250
================ ================
-9-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
The net investment income of the Johnson & Johnson Pension and Savings
Plans Master Trust was composed of the following:
FOR THE
YEAR ENDED
DECEMBER 31,
2004
Net appreciation in fair value of investments
Short term investment funds $ 326,060
U.S. Government and Agency securities 3,465,629
Corporate debt 8,776,223
Preferred stocks 579,384
Common stocks 1,094,390,127
Equities and other 39,969,617
--------------
1,147,507,040
--------------
Interest 96,085,856
Dividends 101,802,719
--------------
Net investment gain $1,345,395,615
--------------
5. GUARANTEED AND SYNTHETIC INVESTMENT CONTRACTS
The Trust holds investments in guaranteed and synthetic investment
contracts. These investments are recorded at their contract values. This
represents cost plus accrued interest of guaranteed investment contracts
and fair value of the collateral plus the benefit responsive wrap value
for synthetics, as the contracts are fully benefit-responsive.
Participants may ordinarily direct the withdrawal or transfer of all or a
portion of their investment at contract value. There are currently no
reserves against contract values for credit risk of the contract issuers
or otherwise.
The average yield of these contracts was approximately 4.12% and 4.86% for
2004 and 2003, respectively. The crediting interest rate was approximately
4.22% for 2004 and 4.96% for 2003. The crediting interest rate of these
contracts is the annual return of the contracts before plan expenses,
while the average yield includes plan expenses. The crediting interest
rate for the investment contracts is either agreed upon in advance with
the issuer or varies based on an agreed upon formula, but cannot be less
than zero. The fair value of guaranteed and synthetic investment contracts
at December 31, 2004 and 2003 was $964,899,533 and $916,198,929,
respectively.
6. TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated December 31, 2002, that the Plan is in compliance with
applicable sections of the Internal Revenue Code ("IRC"). Although the
Plan has been amended since receiving the determination letter, the Plan
administrator and the Plan's tax counsel believe that the Plan is
currently designed and is currently being operated in compliance with the
applicable requirements of the IRC.
-10-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
7. INDEBTEDNESS AND RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by State
Street Global Advisors. State Street is the trustee as defined by the Plan
and, therefore, these transactions qualify as party-in-interest
transactions.
The Plan also invests in shares of the Company. The Company is the plan
sponsor and, therefore, these transactions qualify as party-in-interest
transactions.
In connection with the formation of the Plan's ESOP feature, the Plan
borrowed $100 million from Johnson & Johnson for the purpose of purchasing
J&J common stock. The note bears interest at 9% and is payable through
February 15, 2005. The Company is obligated to make contributions in cash
to the ESOP which, when aggregated with the ESOP's dividends and interest
earnings, equal the amount necessary to enable the ESOP to make its
regularly scheduled payments of principal and interest due on the term
loan.
The remaining principal of $5,919,055 is due within the next year.
In the event of Plan termination or of termination of the ESOP portion of
the Plan, any unallocated shares shall be sold to the Company or on the
open market. The proceeds of such sale shall be used to satisfy the
outstanding principal and interest. The Company has no rights on the
allocated ESOP shares.
8. ASSETS TRANSFERS
In July 2004, the net assets of the OraPharma, Inc. 401(k) Plan in the
amount of $1,420,187 were transferred into the Plan. In August 2004, the
net assets of the 3-Dimensional Pharmaceuticals, Inc. 401(k) Retirement
Savings Plan in the amount of $5,566,319 were transferred into the Plan.
In October 2004, the net assets of the Scios 401(k) Savings & Investment
Plan in the amount of $31,005,833 were transferred into the Plan. These
transfers into the Plan are reflected in the Statement of Changes in Net
Assets Available for Benefits.
-11-
JOHNSON & JOHNSON
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
9. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
DECEMBER 31,
2004 2003
Net assets available for benefits per the financial
statements $ 5,727,385,422 $ 4,854,088,446
Amounts allocated to withdrawing participants (1,266,698) (1,214,681)
--------------- ---------------
Net assets available for benefits per the Form 5500 $ 5,726,118,724 $ 4,852,873,765
--------------- ---------------
YEAR ENDED
DECEMBER 31,
2004
Benefits paid to participants per the financial statements $ 351,631,934
Add: Amounts allocated to withdrawing participants at
December 31, 2004 1,266,698
Less: Amounts allocated to withdrawing participants at
December 31, 2003 (1,214,681)
-------------
Benefits paid to participants per the Form 5500 $ 351,683,951
-------------
Amounts allocated to the withdrawing participants are recorded on the Form
5500 for benefit payments that have been processed and approved for
payment prior to December 31, 2004 but not yet paid as of that date.
-12-
JOHNSON & JOHNSON
SAVINGS PLAN
SCHEDULE H, LINE 4I - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2004
DESCRIPTION OF INVESTMENT
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL, CURRENT
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
*Participant loans Interest rates ranging from 5% to 9.75% - 58,418,387
Maturities ranging from 2005-2009
* Represents party-in-interest transactions.
-13-