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
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[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Fiscal Year Ended
December 31, 2021
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 1-3215
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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 Supplemental Schedules
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 Schedules*:
Schedule H, line 4i - Schedule of Assets (Held at End of
Year)
Schedule H, line 4a - Schedule of Delinquent Participant
Contributions
Signatures
*Other supplemental schedules required by Section 2520.103-10 of
the Department of Labor’s Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974 (“ERISA”), as amended, have been omitted because they are not
required or are not applicable.
Exhibits:
23. Consent
of PricewaterhouseCoopers LLP, dated June 16,
2022
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.
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JOHNSON & JOHNSON SAVINGS PLAN
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Date: June 16, 2022 |
By:
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/s/ Peter Fasolo
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Peter Fasolo
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Chairman, Pension and Benefits Committee
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JOHNSON & JOHNSON SAVINGS PLAN
__________________
FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
DECEMBER 31, 2021 AND 2020
Johnson & Johnson Savings Plan
Index to Financial Statements and Supplemental
Schedules
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Page(s)
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Report of Independent Registered Public Accounting
Firm
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1 |
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Financial Statements:
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Statements of Net Assets Available for Benefits
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2 |
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Statement of Changes in Net Assets Available for
Benefits
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3 |
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Notes to Financial Statements
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4 - 16
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Supplemental Schedules*:
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Schedule H, line 4i - Schedule of Assets (Held at End of
Year)
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17 |
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Schedule H, line 4a - Schedule of Delinquent Participant
Contributions
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18 |
* Other supplemental schedules required by Section 2520.103-10 of
the Department of Labor’s Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974 (“ERISA”), as amended, have been omitted because
they are not required or are not applicable.
Report of Independent Registered Public Accounting
Firm
To
the Administrator and Plan Participants of Johnson & Johnson
Savings Plan
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available
for benefits of Johnson & Johnson Savings Plan
(the “Plan”) as of December 31, 2021 and 2020 and the related
statement of changes in net assets available for benefits for the
year ended December 31, 2021, including the related notes
(collectively referred to as the “financial statements”). In our
opinion, the financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as
of
December 31, 2021 and 2020, and the changes in net assets available
for benefits for the year ended December 31, 2021 in conformity
with accounting principles generally accepted in the United States
of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s
management. Our responsibility is to express an opinion on the
Plan’s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Plan in accordance with the U.S.
federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance
with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement,
whether due to error or fraud.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis
for our opinion.
Supplemental Information
The supplemental Schedule of Assets (Held at End of Year) as of
December 31, 2020 and Schedule of Delinquent Participant
Contributions for the year ended December 31, 2021 have been
subjected to audit procedures performed in conjunction with the
audit of the Plan’s financial statements. The supplemental
schedules are the responsibility of the Plan’s management. Our
audit procedures included determining whether the supplemental
schedules reconcile to the financial statements or the underlying
accounting and other records, as applicable, and performing
procedures to test the completeness and accuracy of the information
presented in the supplemental schedules. In forming our opinion on
the supplemental schedules, we evaluated whether the supplemental
schedules, including their
form and content, are presented in conformity with the Department
of Labor’s Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974.
In our opinion, the supplemental schedules are fairly stated, in
all material respects, in relation to the financial statements as a
whole.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 16, 2022
We have served as the Plan’s auditor since at least 1987. We have
not been able to determine the specific year we began serving as
auditor of the Plan.
Johnson & Johnson Savings Plan
Statements of Net Assets Available for Benefits
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December 31, |
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2021 |
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2020 |
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Assets
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Interest in Johnson & Johnson Pension and Savings Plans Master
Trust, at fair value
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$ |
24,579,699,618 |
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$ |
21,870,112,671 |
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Total investments |
24,579,699,618 |
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21,870,112,671 |
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Receivables
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Employee contributions |
1,056,470 |
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816,264 |
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Employer contributions
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214,325 |
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209,583 |
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Notes
receivable from participants |
99,832,008 |
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104,166,135 |
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Total receivables
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101,102,803 |
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105,191,982 |
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Other
assets |
16,729,766 |
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9,526,571 |
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Total assets
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24,697,532,187 |
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21,984,831,224 |
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Net assets available for benefits
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$ |
24,697,532,187 |
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$ |
21,984,831,224 |
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The accompanying notes are an integral part of these financial
statements.
Johnson & Johnson Savings Plan
Statement of Changes in Net Assets Available for
Benefits
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Year Ended |
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December 31, |
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Additions to net assets attributed to |
2021 |
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Investment Income/Loss |
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Plan's interest in the Johnson & Johnson Pension and Savings
Plans Master Trust net
investment income/loss
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$ |
3,097,406,586 |
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Contributions |
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Employee contributions
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716,755,393 |
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Employer contributions |
248,279,576 |
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Total additions
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4,062,441,555 |
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Deductions from net assets attributed to |
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Benefits paid to participants
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1,356,048,918 |
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Administrative expenses |
51,270,587 |
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Total deductions
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1,407,319,505 |
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Net increase |
2,655,122,050 |
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Asset
transfers due to plan mergers |
57,578,913 |
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Net assets available for benefits |
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Beginning of year |
21,984,831,224 |
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End of year
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$ |
24,697,532,187 |
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The accompanying notes are an integral part of these financial
statements.
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 certain
hourly employees of Johnson & Johnson (the “Plan Administrator”
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. The net
assets of the Plan are held in the Johnson & Johnson Pension
and Savings Plans Master Trust (the “Trust” or "the Master
Trust"). Transactions in the Trust are executed by the
trustee, State Street Bank and Trust Company (“State Street” or
“Trustee”). Recordkeeping services are provided by Alight
Solutions. The Plan’s interest in the Trust is allocated to the
Plan based upon the total of each participant’s share of 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.
CARES Act
In March 2020, the Coronavirus Aid, Relief, and Economic Security
Act (CARES Act) was signed into law. The CARES Act allowed
retirement plans to provide participants who were impacted by the
coronavirus (as defined in the CARES Act) with greater access to
their savings. As permitted by the CARES Act, the Plan implemented
the following provisions:
•Through
December 31, 2020, qualified individuals were permitted to take a
distribution in an amount up to $100,000 from the Plan. Any such
distribution was not subject to the 10% early distribution penalty
or the mandatory 20% federal income tax withholding rate.
Participants who took a qualified distribution had the option to
have the distribution taxed over a three-year period, with the
ability to re-contribute up to the full amount of the distribution
within three years and not be subject to federal income tax as a
result.
•Loans
repayments with respect to qualified participants could be delayed
between March 27, 2020 and December 31, 2020 upon participant
request. Loan repayments were resumed in January 2021.
•Required
minimum distributions for calendar year 2020 were waived for
retired and retirement-aged individuals.
Contributions
In general, full-time salaried employees and certain hourly,
part-time and temporary employees can contribute to the Plan. There
is no service requirement for employee contributions. If a
participant does not take action to enroll or decline enrollment in
the Plan within their first 30 days of employment, they will be
automatically enrolled for pre-tax employee contributions equal to
6% of their eligible pay and these contributions will be invested
in the Plan's default investment option. Prior to September 30,
2019, the default investment option was the Balanced Fund.
Effective September 30, 2019, the Plan's default investment option
is the Target Retirement Fund that aligns with, or is closest to,
the year in which the participant will turn age 62.
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 50% of eligible pay, as defined by
the Plan. Contributions can be pre-tax, Roth, post-tax
or a combination of all three. Pre-tax and Roth
contributions may not exceed the smaller of (i) 50% of a
participant’s base salary (and 1/2 paid commissions, if
applicable) or (ii) $19,500 for 2021. The maximum
contributions to a participant’s account including participant
pre-tax, Roth and post-tax contributions and the Company
match is $58,000 for 2021.
Participants age 50 and over are eligible to contribute extra
pre-tax and/or Roth contributions (“catch-up contributions”) above
the annual Internal Revenue Service ("IRS") limitation up to $6,500
in 2021. 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, Roth and post-tax
contribution percentages that participants have elected. The
catch-up contribution is not eligible for the Company matching
contribution.
Johnson & Johnson Savings Plan
Notes to Financial Statements
Participants receive a Company matching contribution equal to 75%
of the first 6% of a participant’s contributions. The Company
matching contribution is comprised of cash and invested in the
current investment fund mix chosen by the participant.
Investments
Participants may invest in one or more of the various investment
funds offered by the Plan. On September 30, 2019, the
Plan eliminated the Balanced Fund and introduced the Target
Retirement Funds as new investment options for Plan participants.
Each of the Plan's funds represents a mix of various investments.
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.
Participants receive dividends on Johnson & Johnson Common
Stock shares held in the Johnson & Johnson Common Stock Fund
and Johnson & Johnson Stock Contributions Fund. The
dividends are automatically reinvested in the Johnson & Johnson
Common Stock Fund unless specific elections are made to receive a
cash payment. The 2021 dividend pass-through amount paid
to participants of $6,111,398 is reflected in benefits paid to
participants in the Statement of Changes in Net Assets Available
for Benefits. For all other funds, the Trustee reinvests
all dividend and interest income.
Effective September 1, 2020, participants are not permitted to (1)
direct more than 20% of any contribution made to the Plan to the
Johnson & Johnson Common Stock Fund or (2) transfer or
reallocate amounts into the Johnson & Johnson Common Stock Fund
if, immediately after such transfer or reallocation, the aggregate
value of their investments in the Johnson & Johnson Common
Stock Fund and the Johnson & Johnson Stock Contributions Fund
would exceed 20% of their aggregate Plan Balance. This limitation
does not (a) affect investments resulting from transfers before
September 1, 2020 or (b) restrict percentages in excess of 20% that
result from investment performance or reinvestment of
dividends.
Vesting
A participant's contributions (pre-tax, after-tax, Roth and
rollover) and the earnings on them are always fully
vested.
For the Company matching contributions, if a participant was hired
before March 1, 2017, the Company matching contributions were made
to the participant's account after a one-year eligibility period
was satisfied. These contributions and the associated earnings are
fully vested. If a participant was hired on or after March 1, 2017,
the Company matching contributions made to the participant's
account, and the earnings on these contributions, become vested
after the participant has completed a three-year period of service.
These contributions become vested if, while employed by the
Company, the participant should die, become disabled, or reach age
55. If the Company matching contributions and associated earnings
are not vested when the participant employment ends, they will be
forfeited unless the participant returns to employment with the
Company before (1) taking a total distribution of their vested
account balance and (2) incurs a break in service (a period of at
least five consecutive years in which the participant is not
employed by the Company).
Forfeitures
Forfeitures of non-vested Company contributions are used to reduce
future Company contributions. During 2021 and 2020, $3,302,026 and
$2,591,824, respectively, of forfeited participant accounts were
used to reduce the Company's contributions. At December 31, 2021,
there were $364,801 of forfeitures that have not yet been applied
to reduce the Company's contributions.
Payment of Benefits
Participants are allowed to withdraw an amount equal to their
pre-August 1, 2003 post-tax contributions and earnings thereon,
unmatched post-tax contributions made after August 1, 2003 by the
employee and earnings thereon, rollover contributions and earnings
thereon, and pre-2003 Company match and earnings thereon, at any
time. Prior to December 13, 2019, participants were able to
withdraw pre-tax, Roth or post-tax matched contributions, and the
vested employer match after August 1, 2003, only upon meeting
certain hardship conditions. Effective December 13, 2019,
participants are able to withdraw from all vested contribution
types 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 vested balance in the Johnson & Johnson Common
Stock Fund and/or the Johnson &
Johnson & Johnson Savings Plan
Notes to Financial Statements
Johnson Stock Contributions Fund as either cash or in shares of
Johnson & Johnson Common Stock (plus cash for fractional
shares) for lump sum distributions other than a
hardship.
Benefits are also paid to participants upon termination of
employment, long-term disability or retirement. Effective January
1, 2020, participants can elect to defer payment until (a) age
70 1/2 for members who attain age 70 1/2 before January 1,
2020 and (b) age 72 for participants who attain age 70 1/2 after
December 31, 2019 if their vested account balances are greater than
$5,000. Distributions are paid either in a lump sum payment,
partial payments or installment payments made on a monthly,
quarterly, or annual basis over a period of years selected by the
participant.
A participant’s vested account may be distributed to his/her
beneficiaries in lump sum, partials, 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, either directly or rolled over to an Individual
Retirement Account ("IRA").
Administrative Expenses
All third-party administrative expenses are paid by the Plan,
unless otherwise provided for by the Company.
Notes
Receivable from Participants
Participants may borrow up to a maximum of 50% of their vested
account balance. The minimum loan amount is $1,000 and
the maximum amount of all outstanding loans cannot exceed
$50,000. Loans bear an interest rate of prime plus 1%
and are repayable within one to five years. Due to
acquisitions, there are some existing loans extending beyond five
years, which must be allowed to continue once transferred into the
Johnson & Johnson Savings Plan. The collateralized balances in
the participant’s accounts have interest rates that range from
4.25% to 11.33%. 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, in that each participant would
receive the respective value in their account.
2.
Summary of Significant Accounting Policies
Recent Accounting Pronouncements
In August 2018, the Financial Accounting Standards Board (FASB)
issued an Accounting Standards Update (ASU) 2018-13, Fair Value
Measurement (Topic 820), Disclosure Framework - Changes to the
Disclosure Requirements for Fair Value Measurement which removes,
modifies and adds disclosures to Topic 820. The amendments in this
ASU 2018-13 apply to all entities that are required, under existing
U.S. Generally Accepted Accounting Principles (GAAP), to make
disclosures about recurring or nonrecurring fair value
measurements. The amendments in this ASU 2018-13 are effective for
all entities for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2019. The adoption of
this update did not have a material impact on the Plan's financial
statements.
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 of the
Trust
The Plan’s interest in the Trust is stated at fair value, except
for the fully benefit-responsive investment contracts which are
stated at contract value. The investment in the Trust represents
the Plan's interest in the net assets of the Trust.
Johnson & Johnson Savings Plan
Notes to Financial Statements
As the investment funds contain various underlying assets such as
stocks 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 for a single unit 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 and
administrative expenses are recorded on an accrual
basis.
The Plan presents, in the Statement of Changes in Net Assets
Available for Benefits, the net investment income/loss for the
Plan's interest in the Trust which consists of the Plan’s allocated
change in unrealized appreciation and depreciation of the
underlying investments, realized gains and losses on sales of
investments and investment income/loss based upon the total of each
participant's share of the Trust.
Payment of Benefits
Benefit payments to participants are recorded upon
distribution.
Derivatives
The Trust mitigates risk through structured trading with reputable
parties and continual monitoring procedures. The Trust enters into
forward foreign exchange contracts to hedge against adverse changes
in foreign exchange rates related to non-U.S. dollar denominated
investments. The Trust is exposed to credit risk for
non-performance by the counterparty and to market risk for changes
in interest and currency rates. The Trust accounts for forward
foreign exchange contracts at fair value.
The fair value of a forward foreign exchange contract is the
aggregation by currency of all future cash flows discounted to its
present value at the prevailing market interest rates and
subsequently converted to the U.S. Dollar at the current spot
foreign exchange rate.
The Trust actively manages risk by periodically investing in
interest rate swaps, credit default swaps and fixed income options.
Interest rate swaps are used to manage interest rate risk and
provide an effective means to adjust portfolio duration, maturity
mix and term-structure. Credit default swaps are used to either
synthetically add or reduce credit risk to an individual issuer or
a basket of issuers. Depending on the type of contract, the
counterparty risk exposure can be either with the exchange or
another counterparty.
Fixed income options are used in various ways including: to pursue
upside exposure to a portion of the yield curve, to capitalize on
anticipated changes in market volatility, to focus on generating
income, and to serve as a hedge. The Trust records interest rate
swaps, credit default swaps and options at fair value.
Interest rate swaps are valued daily using underlying yield curves
based upon broker/dealer sources, the present value of expected
cash flows, and frequency of which they compound and pay. Credit
default swaps are valued using daily underlying yield curves and/or
credit curves and spreads based upon broker/dealer/index sources,
the present value of expected cash flows, and the frequency of
which they compound and pay including a weighted default
calculation. Options are valued using market-based inputs to
models, broker or dealer quotations, or alternative pricing sources
with reasonable levels of price transparency, where such inputs and
models are available. Alternatively, the values may be obtained
through unobservable management determined inputs and/or
management’s proprietary models. Where models are used, the
selection of a particular model to value an option depends upon the
contractual terms of, and specific risks inherent in, the option as
well as the availability of pricing information in the market.
Valuation models require a variety of inputs, including contractual
terms, market prices, measures of volatility and correlations of
such inputs.
The Trust may also enter into total return swap contracts, which
are contracts in which one party agrees to make periodic payments
based on the change in market value of the underlying assets, which
may include a specified security, basket of securities or security
indexes during the specified period, in return for periodic
payments based on a fixed or variable interest rate of the total
return from other underlying assets. Total return swap agreements
may be used to obtain exposure to a security or market without
owning or taking physical custody of such security or market. Total
return swaps involve not only the risk associated with the
investment in the underlying securities, but also the risk of the
counterparty not fulfilling its obligations under the agreement.
Total return swaps are valued daily using underlying index levels
for fixed and financing legs. We determine the fair value of our
total return
Johnson & Johnson Savings Plan
Notes to Financial Statements
swaps based on published index prices. The total market value is
the sum of the market value of both the fixed and the float legs.
The market value of the fixed leg is determined by the change in
price of the asset times the units. The market value of the float
leg is determined by the accrued financing given the reset
frequency and financing index. The MTM/ SWAP value is
collateralized daily.
A futures contract is an agreement to buy or sell a security or
other asset for a set price on a future date. These contracts are
traded on major exchanges and are marked to market daily, thus
minimizing counterparty risk. The Trust enters into futures
contracts mainly to manage the duration and refine the curve
positioning of the fixed income portfolios, thus, allowing the
investment managers to achieve the overall investment portfolios'
objectives. These contracts are priced by an exchange and the fair
value is the daily mark to market, which is a function of price
movements for the contract relative to the level it was originally
entered into.
There have been no changes in the methodologies used at December
31, 2021 and 2020.
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 the applicable disclosures of
contingent assets and liabilities at the date of the financial
statements. Actual results could differ from those
estimates.
Risks 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 Statements of Net Assets Available for Benefits and the
Statement of Changes in Net Assets Available for
Benefits.
Reporting of Fully Benefit-Responsive
Investment Contracts
Fully benefit-responsive investment contracts are reported at
contract value. Contract value is the relevant measurement criteria
for that portion of the net assets available for benefits of a
defined contribution plan attributable to fully benefit-responsive
investment contracts because contract value is the amount
participants would receive if they were to initiate permitted
transactions under the terms of the Plan.
3. Johnson
& Johnson Pension and Savings Plans
Master Trust
The assets of the Johnson & Johnson Savings Plan, the Johnson
& Johnson Retirement Savings Plan, the Retirement Plan of
Johnson & Johnson and Affiliated Companies, the Johnson &
Johnson Retirement Plan for Union Represented Employees, and the
Johnson & Johnson Retirement Plan for Puerto Rico Employees
comprise the total of the Trust which is held by State
Street.
The following table presents the net assets of the Master Trust and
the Plan's interest in the net assets of the Master Trust as of
December 31, 2021 and 2020.
Johnson & Johnson Savings Plan
Notes to Financial Statements
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Savings Plan's |
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Master Trust |
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Interest in Master Trust |
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2021 |
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2020 |
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2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Investments, at fair value |
|
|
|
|
|
|
|
|
|
Short-term investment funds |
|
$ |
1,389,861,183 |
|
|
$ |
1,189,683,373 |
|
|
$ |
614,954,452 |
|
|
$ |
716,285,594 |
|
|
Government and agency securities |
|
4,603,175,965 |
|
|
3,704,625,243 |
|
|
669,223,893 |
|
|
653,713,985 |
|
|
Debt Securities |
|
4,102,056,257 |
|
|
4,566,270,808 |
|
|
650,281,521 |
|
|
676,349,037 |
|
|
Equity Securities |
|
24,083,032,474 |
|
|
22,572,712,824 |
|
|
12,128,696,350 |
|
|
11,181,457,192 |
|
|
Exchange Traded Funds |
|
9,565,350 |
|
|
— |
|
|
— |
|
|
— |
|
|
Common collective trusts |
|
14,811,487,642 |
|
|
12,585,925,043 |
|
|
8,259,927,909 |
|
|
6,337,913,003 |
|
|
Partnership/joint venture interests |
|
1,968,982,495 |
|
|
1,111,970,701 |
|
|
130,417,893 |
|
|
123,504,175 |
|
|
Total Investments at Fair Value |
|
$ |
50,968,161,366 |
|
|
$ |
45,731,187,992 |
|
|
$ |
22,453,502,018 |
|
|
$ |
19,689,222,986 |
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
|
|
|
Guaranteed and synthetic investment |
|
|
|
|
|
|
|
|
contracts at contract value |
|
$ |
2,240,845,017 |
|
|
$ |
2,340,548,670 |
|
|
$ |
2,190,054,990 |
|
|
$ |
2,289,059,719 |
|
|
Receivable for investments sold |
|
104,991,312 |
|
|
294,865,280 |
|
|
64,268,585 |
|
|
239,026,068 |
|
|
|
|
|
|
|
|
|
|
|
Interest receivables |
|
45,563,518 |
|
|
46,781,754 |
|
|
26,726,591 |
|
|
37,275,084 |
|
|
Dividend receivables |
|
14,623,451 |
|
|
12,296,717 |
|
|
8,951,489 |
|
|
9,968,064 |
|
|
Other receivables |
|
8,263,756 |
|
|
11,264,732 |
|
|
5,058,513 |
|
|
9,131,508 |
|
|
Total Other Assets |
|
$ |
2,414,287,054 |
|
|
$ |
2,705,757,153 |
|
|
$ |
2,295,060,168 |
|
|
$ |
2,584,460,443 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Master Trust assets |
|
$ |
53,382,448,420 |
|
|
$ |
48,436,945,145 |
|
|
$ |
24,748,562,186 |
|
|
$ |
22,273,683,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Payables for investments purchased |
|
$ |
(259,981,986) |
|
|
$ |
(484,343,393) |
|
|
$ |
(159,143,400) |
|
|
$ |
(392,622,342) |
|
|
|
|
|
|
|
|
|
|
|
All other payables |
|
(15,877,554) |
|
|
(13,506,088) |
|
|
(9,719,168) |
|
|
(10,948,416) |
|
|
Total Liabilities |
|
$ |
(275,859,540) |
|
|
$ |
(497,849,481) |
|
|
$ |
(168,862,568) |
|
|
$ |
(403,570,758) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Master Trust assets |
|
$ |
53,106,588,880 |
|
|
$ |
47,939,095,664 |
|
|
$ |
24,579,699,618 |
|
|
$ |
21,870,112,671 |
|
|
|
|
|
|
|
|
|
|
The following table presents the changes
in net assets for the Master Trust for the year ended December 31,
2021:
|
|
|
|
|
|
|
2021 |
|
Changes in Net Assets: |
|
|
Net appreciation (depreciation) in fair value of
investments |
$ |
5,627,895,274 |
|
|
Interest |
332,992,838 |
|
|
Dividends |
408,386,035 |
|
|
Total net
investment income (loss) |
6,369,274,147 |
|
|
|
|
|
Contributions received, benefits paid and other,
net |
(1,201,780,931) |
|
|
|
|
|
Increase
(decrease) in net assets |
5,167,493,216 |
|
|
Net assets |
|
|
Beginning of year |
47,939,095,664 |
|
|
End of year |
$ |
53,106,588,880 |
|
Johnson & Johnson Savings Plan
Notes to Financial Statements
a.
Fair
Value Measurements
The Plan’s valuation methodologies were applied to all of the
Trust's investments carried at fair value. Fair value is based upon
quoted market prices, where available. If listed prices or quotes
are not available, fair value is based upon models that primarily
use, as inputs, market-based or independently sourced market
parameters, including yield curves, interest rates, volatilities,
equity or debt prices, foreign exchange rates and credit
curves.
While the Plan believes its valuation methods are appropriate and
consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain
financial instruments could result in a different estimate of fair
value at the reporting date.
Valuation Hierarchy
FASB Accounting Standards Codification (ASC) 820,
Fair Value Measurements and Disclosures,
provides the framework for measuring fair value. That framework
provides a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy under
FASB ASC 820 are described as follows:
•Level
1 - Quoted prices in active markets for identical assets and
liabilities.
•Level
2 - Significant other observable inputs.
•Level
3 - Significant unobservable inputs.
A financial instrument’s categorization within the valuation
hierarchy is based upon the lowest level of input that is
significant to the fair value measurement.
The following is a description of the valuation methodologies used
for the investments measured at fair value:
•Short-term
investment funds - The assets are comprised of cash and quoted
short-term instruments which are valued at the closing price or the
amount held on deposit by the custodian bank where quoted prices
are available in an active market and are classified as Level
1. Other investments are through investment vehicles
valued using the Net Asset Value ("NAV") provided by the
administrator of the fund. The NAV is based on the value of the
underlying assets owned by the fund, minus its liabilities, and
then divided by the number of shares outstanding. The NAV is a
quoted price in a market that is not active and classified as Level
2. In addition, derivatives are included in this category. In
general, derivatives that are exchange listed and actively traded
are classified as Level 1, while derivatives that are not exchange
listed but still actively traded in observable markets are
classified as Level 2.
•Government
and agency securities - The assets are comprised of government and
agency securities and U.S. Treasury bills and notes of varying
maturities. These are all considered Level 2 fair values which are
estimated by using pricing models, quoted prices of securities with
similar characteristics or discounted cash flows.
•Debt
instruments - The assets are comprised of corporate debt and
commercial loans and mortgages. Fair values are estimated by using
pricing models, quoted prices of securities with similar
characteristics or discounted cash flows and are generally
classified as Level 2. Level 3 debt instruments are priced based on
unobservable inputs.
•Equity
securities - U.S. and International equity securities are valued at
the closing price reported on the major market on which the
individual securities are traded. Substantially all equity
securities are classified within Level 1 of the valuation
hierarchy.
Johnson & Johnson Savings Plan
Notes to Financial Statements
•Exchange
Traded Funds (ETF) - ETFs are valued at the closing price reported
on the major market on which the ETF is traded. ETFs are classified
as Level 1 of the valuation hierarchy.
•Common
Collective Trusts (CCT's) - The fair value of all CCT interests
have been determined using NAV as a practical expedient. The NAV is
based on the value of the underlying assets owned by the fund,
minus its liabilities, and then divided by the number of shares
outstanding. The CCT's are included in Investments measured at Net
Asset Value. A majority of the CCT's are used for liquidity
purposes for both the defined benefit and defined contribution
plans within the Trust. The CCTs are primarily passive funds
that provide daily liquidity with no prior notice for participant
transactions, and 2-day prior notice for Plan Sponsor transactions
for the various Plan investment options. Participant directed
purchases and sales are transacted at the NAV. At December
31, 2021 and 2020, approximately 77% and 68%, respectively, of the
CCT's are invested in passive strategies that mimic the indices,
and 23% and 32%, respectively, in active strategies.
Additionally, at December 31, 2021 and 2020, 65% and 65%,
respectively, of the active and passive CCT's are invested in U.S.
equities, 23% and 24%, respectively, are invested in global
equities and emerging markets, and the remaining 12% and 11%,
respectively, are invested in fixed income. There are no
unfunded commitments for any of the CCT's that the Trust invests
in.
•Limited
Partnerships ("LP") - The Trust invests in LP investments including
a Hedge Fund, Emerging Market Long-Only Equity Funds and Private
Market Funds. As of December 31, 2021 and 2020, approximately 16%
and 24%, respectively, of these investments are invested in the
Hedge Fund, 22% and 38%, respectively, in Emerging Market Long-Only
Equity Funds and 62% and 38%, respectively, in Private Market
Funds.
The Trust's private market program has invested as a limited
partner in a well-diversified portfolio of funds managed by general
partners. The program is being managed to ensure adequate
diversification by general partner, strategy type (private equity,
real assets, and private credit), and geographic region. As of
December 31, 2021 and 2020, approximately 58% and 57%,
respectively, of these investments are invested in private equity,
15% and 22%, respectively, in real assets, and 27% and 21%,
respectively, in private credit. The Trust has entered into a
number of private markets agreements that commit the Trust, upon
request, to make additional investment purchases up to
predetermined amounts. As of December 31, 2021, and 2020, the Trust
had aggregate unfunded commitments of $1,547,368,813 and
$1,343,995,206 respectively. These commitments are expected to be
satisfied with distributions from existing funds, reinvestment of
proceeds and/or periodic rebalancing of existing investments. The
LP investments have target maturity dates ranging from 2022 to at
least 2034 with the possibility of 2 to 4 years of extensions in
accordance with the respective LP's governing documents.
Distributions to the Trust from LP investments are driven by
portfolio company liquidation in the public and private markets.
Otherwise, the LP investments are not redeemable. The fair value of
the Trust's LP investments has been determined using NAV provided
by the respective general partners as a practical expedient. The
NAV is the pro-rata share of the Trust's position based on the
value of the underlying assets owned by the LP, minus its
liabilities.
2021 Master Trust Investments Measured at
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted market
prices inputs |
|
Observable
inputs |
|
|
|
Investments measured at Net |
|
Total Assets |
|
December 31, 2021 |
|
(Level 1) |
|
(Level 2) |
|
|
|
Asset Value |
|
|
|
Short-term investment funds |
|
$ |
7,666,727 |
|
|
$ |
1,382,194,456 |
|
|
|
|
$ |
— |
|
|
$ |
1,389,861,183 |
|
|
Government and agency securities |
|
— |
|
|
4,603,175,965 |
|
|
|
|
— |
|
|
4,603,175,965 |
|
|
Debt instruments |
|
— |
|
|
4,102,056,257 |
|
|
|
|
— |
|
|
4,102,056,257 |
|
|
Equity Securities |
|
24,080,008,304 |
|
|
3,024,170 |
|
|
|
|
— |
|
|
24,083,032,474 |
|
|
Exchange Traded Funds |
|
9,565,350 |
|
|
— |
|
|
|
|
— |
|
|
9,565,350 |
|
|
Common collective trusts |
|
— |
|
|
— |
|
|
|
|
14,811,487,642 |
|
|
14,811,487,642 |
|
|
Partnership/joint venture interests |
|
— |
|
|
— |
|
|
|
|
1,968,982,495 |
|
|
1,968,982,495 |
|
|
Trust investments at fair value |
|
$ |
24,097,240,381 |
|
|
$ |
10,090,450,848 |
|
|
|
|
$ |
16,780,470,137 |
|
|
$ |
50,968,161,366 |
|
Johnson & Johnson Savings Plan
Notes to Financial Statements
2020 Master Trust Investments Measured at Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted market
prices inputs |
|
Observable
inputs |
|
|
|
Investments measured at Net |
|
Total Assets |
|
December 31, 2020 |
|
(Level 1) |
|
(Level 2) |
|
|
|
Asset Value |
|
|
|
Short-term investment funds |
|
$ |
59,112,562 |
|
|
$ |
1,130,570,811 |
|
|
|
|
$ |
— |
|
|
$ |
1,189,683,373 |
|
|
Government and agency securities |
|
— |
|
|
3,704,625,243 |
|
|
|
|
— |
|
|
3,704,625,243 |
|
|
Debt instruments |
|
— |
|
|
4,566,270,808 |
|
|
|
|
— |
|
|
4,566,270,808 |
|
|
Equity securities |
|
22,569,563,572 |
|
|
3,149,252 |
|
|
|
|
— |
|
|
22,572,712,824 |
|
|
Common Collective Trusts |
|
— |
|
|
— |
|
|
|
|
12,585,925,043 |
|
|
12,585,925,043 |
|
|
Partnership/joint venture interests |
|
— |
|
|
— |
|
|
|
|
1,111,970,701 |
|
|
1,111,970,701 |
|
|
Trust investments at fair value |
|
$ |
22,628,676,134 |
|
|
$ |
9,404,616,114 |
|
|
|
|
$ |
13,697,895,744 |
|
|
$ |
45,731,187,992 |
|
b. Synthetic
Investment Contracts
The Trust holds investments in synthetic GICs. The
weighted average insurance financial strength rating of the
insurers for these contracts is Aa3. These investments
are recorded at their book values. The synthetic GICs’ contract
value represents book value plus reinvested income adjusted for net
cash flows. The synthetic GICs are fully benefit-responsive.
Participants may under most circumstances direct the withdrawal or
transfer of all or a portion of their investment at contract value.
Currently no reserves are needed against contract values for credit
risk of the contract issuers or otherwise.
The synthetic GICs provide a return over a period of time through a
fully benefit-responsive contract, or wrapper contract, which is
backed by the underlying assets owned by the Trust. The
portfolio of assets with overall Aa1/AA+ credit quality, underlying
the synthetic GICs primarily includes government and agency
securities, corporate debt, mortgage backed securities, and asset
backed securities. The contract value of the synthetic GICs was
$2,240,845,017 and $2,340,548,670 at December 31, 2021 and December
31, 2020, respectively.
There are certain events not initiated by Plan participants that
limit the ability of the Plan to transact with the issuer of a GIC
(synthetic or traditional) at its contract value. Specific coverage
provided by each synthetic GIC may be different from each issuer.
Examples of such events include: the Plan’s failure to
qualify under the Internal Revenue Code ("IRC") of 1986 as amended;
full or partial termination of the Plan; involuntary termination of
employment as a result of a corporate merger, divestiture,
spin-off, or other significant business restructuring, which may
include early retirement incentive programs or bankruptcy; changes
to the administration of the Plan which decreases employee or
employer contributions, the establishment of a competing plan by
the plan sponsor, the introduction of a competing investment
option, or other Plan amendment that has not been approved by the
contract issuers; dissemination of a participant communication that
is designed to induce participants to transfer assets from this
investment option; events resulting in a material and adverse
financial impact on the contract issuer, including changes in the
tax code, laws or regulations. The Plan fiduciaries
believe that the occurrence of any of the aforementioned events,
which would limit the Plan’s ability to transact with the issuer of
a GIC at its contract value, is not probable.
c. Derivatives
Presented in the following table is the fair value of derivatives
within the Trust as of December 31, 2021 and 2020. The net
unrealized appreciation/depreciation of these derivative
instruments is included in the Interest in Johnson & Johnson
Pension and Savings Plans Master Trust, at fair value in the
Statements of Net Assets Available for Benefits.
Johnson & Johnson Savings Plan
Notes to Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
Asset |
Liability |
|
Asset |
Liability |
|
Fair Value of Derivatives |
|
|
|
|
|
|
|
Forward Foreign Exchange Contracts |
|
$ |
438,417 |
|
$ |
2,403,478 |
|
|
$ |
976,178 |
|
$ |
4,353,037 |
|
|
Futures |
|
88,202 |
|
— |
|
|
1,193,068 |
|
— |
|
|
Interest Rate Swaps |
|
1,506,889 |
|
— |
|
|
— |
|
1,710,662 |
|
|
Credit Default Swaps |
|
748,928 |
|
— |
|
|
467,456 |
|
— |
|
|
Options |
|
38,655 |
|
— |
|
|
52,209 |
|
— |
|
|
Total Return Swaps |
|
12,366,796 |
|
— |
|
|
— |
|
— |
|
|
Total |
|
$ |
15,187,887 |
|
$ |
2,403,478 |
|
|
$ |
2,688,911 |
|
$ |
6,063,699 |
|
The following table provides information on the investment
gains/(losses) on derivatives within the Trust for the year ended
December 31, 2021. These amounts are included in the Plan’s
interest in the Johnson & Johnson Pension and Savings Plans
Master Trust net investment income/loss on the Statement of Changes
in Net Assets Available for Benefits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
Realized (Loss)/Gain |
Unrealized (Loss)/Gain |
Total Investment (Loss)/Gain |
|
Forward Foreign Exchange Contracts |
|
$ |
(832,665) |
|
$ |
1,411,799 |
|
$ |
579,134 |
|
|
Futures |
|
20,681,930 |
|
(2,356,418) |
|
18,325,512 |
|
|
Interest Rate Swaps |
|
(288,964) |
|
3,217,552 |
|
2,928,588 |
|
|
Credit Default Swaps |
|
1,192,100 |
|
281,472 |
|
1,473,572 |
|
|
Options |
|
— |
|
(13,554) |
|
(13,554) |
|
|
Total Return Swaps |
|
8,250,332 |
|
12,366,796 |
|
20,617,128 |
|
|
Total |
|
$ |
29,002,733 |
|
$ |
14,907,647 |
|
$ |
43,910,380 |
|
The following table provides information on collateral pledged by
and owed to the Trust as of December 31, 2021 and
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
Pledged/ (Owed) |
|
Pledged/ (Owed) |
|
|
|
Cash |
|
Cash |
|
Forward Foreign Exchange Contracts |
|
$ |
2,658,000 |
|
|
$ |
290,000 |
|
|
Futures |
|
1,206,000 |
|
|
— |
|
|
Swaps |
|
(6,083,000) |
|
|
2,952,000 |
|
Johnson & Johnson Savings Plan
Notes to Financial Statements
The following table provides the average notional value of
derivatives held by the Trust as of December 31, 2021 and
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Notional Value |
|
|
2021 |
2020 |
|
Purchased Forward Foreign Exchange Contracts |
|
$ |
12,028,311 |
|
$ |
20,469,817 |
|
|
Sold Forward Foreign Exchange Contracts |
|
94,994,204 |
|
100,524,775 |
|
|
Purchased Futures Contracts |
|
355,608,079 |
|
77,352,451 |
|
|
Sold Futures Contracts |
|
23,380,775 |
|
34,488,525 |
|
|
|
|
|
|
Written Options Contracts |
|
23,548,000 |
|
43,451,667 |
|
|
Interest Rate Swaps |
|
341,985,970 |
|
190,386,522 |
|
|
Written Credit Default Swaps |
|
196,338,893 |
|
47,188,250 |
|
|
Total Return Swaps |
|
257,780,226 |
|
— |
|
For the written credit default swaps, the recourse provisions are
determined either by the International Swaps and Derivatives
Association ("ISDA") agreements or the exchange. Where the Trust is
a seller of credit default swaps and if a credit event occurs due
to the default of the underlying security or the underlying
tranche, this would result in a net loss to the Trust. At December
31, 2021, the maximum payout for outstanding credit default swaps
aggregated to $255,751,000 with terms as follows:
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
Number of Contracts |
Maturity |
Total Value |
|
4 |
Less than 1 Year |
$ |
8,000,000 |
|
|
5 |
1 Year |
1,800,000 |
|
|
8 |
2 Years |
5,100,000 |
|
|
7 |
3 Years |
12,651,000 |
|
|
7 |
4 Years |
9,700,000 |
|
|
8 |
5 Years |
96,200,000 |
|
|
2 |
9 Years |
13,400,000 |
|
|
1 |
10 Years |
108,900,000 |
|
At December 31, 2020, the maximum payout for outstanding credit
default swaps aggregated to $83,421,000
with terms as follows:
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
Number of Contracts |
Maturity |
Total Value |
|
17 |
Less than 1 Year |
$ |
31,600,000 |
|
|
5 |
2 Years |
2,900,000 |
|
|
9 |
3 Years |
5,600,000 |
|
|
10 |
4 Years |
28,321,000 |
|
|
3 |
5 Years |
15,000,000 |
|
4. Notes
Receivable from Participants
The Plan had participant loans outstanding at December 31, 2021 and
December 31, 2020 of $100 million and $104 million,
respectively. The net decrease of $4 million for 2021
represents loan issuances of $48 million less loan retirements and
payments toward outstanding loans of $52 million. Delinquent notes
receivable from participants are reclassified to benefit payments
based on terms of the Plan document.
Johnson & Johnson Savings Plan
Notes to Financial Statements
5. Tax
Status
The Plan received a favorable determination letter from the IRS
dated August 17, 2017. Although the Plan has been amended
since receiving the determination letter, the Plan Administrator
believes that the Plan is currently designed and is currently being
operated in compliance with the applicable requirements of the
IRC.
Accounting principles generally accepted in the United States of
America require plan management to evaluate tax positions taken by
the Plan and recognize a tax liability (or asset) if the Plan has
taken an uncertain tax position that more likely than not would not
be sustained upon examination by the IRS. The Plan
Administrator has concluded that as of December 31, 2021 and
December 31, 2020, there are no uncertain tax positions taken or
expected to be taken that would require recognition of a liability
(or asset) or disclosure in the financial
statements. The Plan is subject to routine audits by
taxing jurisdictions; however, there are currently no audits for
any tax periods in progress.
6. Related
Party Transactions
Certain Plan investments, such as shares of CCT's managed by State
Street Global Advisors, a division of State Street, and shares of
State Street common stock and bonds, qualify as party-in interest
transactions as State Street is the Trustee as defined by the
Plan. As of December 31, 2021 and December 31, 2020, the
total market value of investments in these interests allocated to
the Plan and managed by State Street was $8,155,078,339 and
$6,218,652,107, respectively.
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. As of December 31, 2021 and
December 31, 2020, the fair value of investments in Johnson &
Johnson Common Stock was $3,901,623,940 and $3,756,929,248,
respectively. During the year ended December 31, 2021, the Plan
made purchases of $89,028,191 and sales of $266,568,843 of the
Company’s common stock. The total dividend income received during
2021 was $97,185,508. The total realized and unrealized gains
during 2021 were $142,418,984 and $2,123,158,986,
respectively.
7. Asset Transfers
As a result of business acquisitions by the Plan Administrator, the
following transfers into the Plan were completed in
2021:
|
|
|
|
|
|
|
|
|
|
Plan Name |
Amount Transferred |
Date of Transfer |
|
TARIS Biomedical 401 (k) Plan |
$ |
2,293,460 |
|
January 2021 |
|
Auris 401 (k) Plan |
19,963,468 |
|
February 2021 |
|
Actelion 401 (k) Retirement Plan |
109 |
|
February 2021 |
|
Momenta 401 (k) Plan |
35,321,876 |
|
November 2021 |
All transfers are reflected in the Statement of Changes in Net
Assets Available for Benefits
Johnson & Johnson Savings Plan
Notes to Financial Statements
8. 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, |
|
|
2021 |
|
2020 |
|
Net assets available for benefits per the financial
statements
|
|
$ |
24,697,532,187 |
|
|
$ |
21,984,831,224 |
|
|
Deemed distributions
|
|
(781,150) |
|
|
(835,310) |
|
|
Amounts allocated to withdrawing participants
|
|
(1,970,280) |
|
|
(2,771,992) |
|
|
Net assets available for benefits per the Form 5500
|
|
$ |
24,694,780,757 |
|
|
$ |
21,981,223,922 |
|
The following is a reconciliation of the net increase in net assets
available for benefits per the financial statements to the Form
5500:
|
|
|
|
|
|
|
December 31, 2021 |
|
Net increase in net assets available for benefits per the financial
statements
|
$ |
2,655,122,050 |
|
|
Less: Amounts allocated to withdrawing participants at
December 31, 2021 (not yet paid)
|
(1,970,280) |
|
|
Less: Deemed distributions
|
(188,972) |
|
|
Add: Amounts allocated to withdrawing participants at December 31,
2020
|
2,771,992 |
|
|
Add: Loan offset
|
243,132 |
|
|
Net increase in net assets available for benefits per the Form
5500
|
$ |
2,655,977,922 |
|
9. Subsequent Events
In November 2021, the Company announced its intention to separate
the Company's Consumer Health business, with the intent to create a
new, publicly traded company. The Company is targeting completion
of the planned separation in 18 to 24 months after initial
announcement. The planned separation may not be completed on the
terms or timeline currently contemplated, if at all, and may not
achieve the expected results. The impacts of this decision is not
yet known, but are being closely monitored throughout
2022.
The Plan has assessed subsequent events through the date that the
financial statements were available to be issued and has determined
that no other items require disclosure.
Johnson & Johnson Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of
Year)
As of December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Identity of Issue, Borrower,
Lessor, or Similar Party
|
|
Description of Investment
Including Maturity Date, Rate of
Interest, Collateral, Par or
Maturity Value
|
|
Cost
|
|
Current Value
|
|
Plan's interest in the Trust
|
|
Plan's interest in the Johnson & Johnson Pension and Savings
Plans Master Trust
|
|
**
|
|
$ |
24,579,699,618 |
|
|
*Participant loans
|
|
Interest rates ranging from 4.25% to 11.33%. Maturities ranging
from 2022 - 2040
|
|
**
|
|
$ |
99,832,008 |
|
* Represents
party-in-interest transactions
** Not
applicable
Johnson & Johnson Savings Plan
Schedule H, line 4a - Schedule of Delinquent Participant
Contributions
For the year ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant Contributions Transferred Late to Plan |
Total that Constitute Nonexempt Prohibited Transaction |
Total Fully Corrected Under VFCP and PTE 2002-51 |
|
Check here if Late Participant Loan Repayments are
included:
q
|
Contributions Not Corrected |
Contributions Corrected Outside VFCP |
Contributions Pending Correction in VFCP |
|
|
|
$ 0 |
$ 1,755* |
$ 0 |
$ 0 |
*All delinquent contributions, adjusted for earnings, have been
contributed to the Plan.
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