Rendering

Component: (Network and Table)
Network
2310301 - Disclosure - Pensions and Other Benefit Plans (Tables)
(http://www.jnj.com/role/PensionsAndOtherBenefitPlansTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000200406 (http://www.sec.gov/CIK)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-04 - 2017-01-01
Compensation and Retirement Disclosure [Abstract]
 
Components of Net Periodic Benefit Cost
Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2016, 2015 and 2014 include the following components:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
 
$
949

 
1,037

 
882

 
224

 
257

 
211

Interest cost
 
927

 
988

 
1,018

 
158

 
186

 
197

Expected return on plan assets
 
(1,962
)
 
(1,809
)
 
(1,607
)
 
(6
)
 
(7
)
 
(7
)
Amortization of prior service cost (credit)
 
1

 
2

 
6

 
(34
)
 
(33
)
 
(34
)
Amortization of net transition obligation
 
—

 
—

 
1

 
—

 
—

 
—

Recognized actuarial losses
 
496

 
745

 
460

 
135

 
201

 
136

Curtailments and settlements
 
11

 
8

 
(17
)
 
—

 
—

 
—

Net periodic benefit cost
 
$
422

 
971

 
743

 
477

 
604

 
503

  
Amounts Expected to be Recognized in Net Periodic Benefit Cost
Amounts expected to be recognized in net periodic benefit cost in the coming year for the Company’s defined benefit retirement plans and other post-retirement plans:
(Dollars in Millions)
 
Amortization of net transition obligation
$
—

Amortization of net actuarial losses
715

Amortization of prior service credit
28

  
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation
The following table represents the weighted-average actuarial assumptions:
 
 
Retirement Plans
 
Other Benefit Plans
Worldwide Benefit Plans
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost discount rate
 
3.98
%
 
3.78
 
4.78
 
4.77
 
4.31
 
5.25
Interest cost discount rate
 
4.24
%
 
3.78
 
4.78
 
4.10
 
4.31
 
5.25
Rate of increase in compensation levels
 
4.02
%
 
4.05
 
4.08
 
4.32
 
4.11
 
4.29
Expected long-term rate of return on plan assets
 
8.55
%
 
8.53
 
8.46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.78
%
 
4.11
 
3.78
 
4.42
 
4.63
 
4.31
Rate of increase in compensation levels
 
4.02
%
 
4.01
 
4.05
 
4.29
 
4.28
 
4.11
  
Assumed Health Care Cost Trend Rates
The following table displays the assumed health care cost trend rates, for all individuals:
Health Care Plans
 
2016
 
2015
Health care cost trend rate assumed for next year
 
6.32
%
 
6.60
%
Rate to which the cost trend rate is assumed to decline (ultimate trend)
 
4.50
%
 
4.50
%
Year the rate reaches the ultimate trend rate
 
2038

 
2038

  
Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one-percentage-point change in assumed health care cost trend rates would have the following effect:
 
 
One-Percentage-
 
One-Percentage-
(Dollars in Millions)
 
Point Increase
 
Point Decrease
Health Care Plans
 
 

 
 

Total interest and service cost
 
$
30

 
(23
)
Post-retirement benefit obligation
 
$
401

 
(325
)
  
Schedule of Net Funded Status
The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2016 and 2015 for the Company’s defined benefit retirement plans and other post-retirement plans:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2016
 
2015
 
2016
 
2015
Change in Benefit Obligation
 
 
 
 
 
 
 
 
Projected benefit obligation — beginning of year
 
$
25,855

 
26,889

 
4,669

 
5,081

Service cost
 
949

 
1,037

 
224

 
257

Interest cost
 
927

 
988

 
158

 
186

Plan participant contributions
 
54

 
48

 
—

 
—

Amendments
 
(48
)
 
60

 
—

 
—

Actuarial (gains) losses
 
2,302

 
(1,578
)
 
(73
)
 
(400
)
Divestitures & acquisitions
 
(24
)
 
(5
)
 
—

 
—

Curtailments, settlements & restructuring
 
(25
)
 
(20
)
 
—

 
(3
)
Benefits paid from plan*
 
(1,210
)
 
(773
)
 
(378
)
 
(420
)
Effect of exchange rates
 
(664
)
 
(791
)
 
5

 
(32
)
Projected benefit obligation — end of year
 
$
28,116

 
25,855

 
4,605

 
4,669

Change in Plan Assets
 
 
 
 
 
 
 
 
Plan assets at fair value — beginning of year
 
$
22,254

 
22,575

 
74

 
79

Actual return on plan assets
 
2,286

 
298

 
7

 
1

Company contributions
 
838

 
752

 
372

 
414

Plan participant contributions
 
54

 
48

 
—

 
—

Settlements
 
(25
)
 
(20
)
 
—

 
—

Divestitures & acquisitions
 
(24
)
 
(5
)
 
—

 
—

Benefits paid from plan assets*
 
(1,210
)
 
(773
)
 
(378
)
 
(420
)
Effect of exchange rates
 
(540
)
 
(621
)
 
—

 
—

Plan assets at fair value — end of year
 
$
23,633

 
22,254

 
75

 
74

Funded status — end of year
 
$
(4,483
)
 
(3,601
)
 
(4,530
)
 
(4,595
)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
 
 
 
 
 
 
 
 
Non-current assets
 
$
227

 
256

 
—

 
—

Current liabilities
 
(86
)
 
(77
)
 
(315
)
 
(324
)
Non-current liabilities
 
(4,624
)
 
(3,780
)
 
(4,215
)
 
(4,271
)
Total recognized in the consolidated balance sheet — end of year
 
$
(4,483
)
 
(3,601
)
 
(4,530
)
 
(4,595
)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
7,749

 
6,501

 
1,804

 
2,013

Prior service cost (credit)
 
(12
)
 
34

 
(150
)
 
(185
)
Unrecognized net transition obligation
 
—

 
—

 
—

 
—

Total before tax effects
 
$
7,737

 
6,535

 
1,654

 
1,828

 
 
 
 
 
 
 
 
 
Accumulated Benefit Obligations — end of year
 
$
25,319

 
23,262

 
 
 
 
 
 
 
 
 
 
 
 
 
*In 2016, the Company offered a voluntary lump-sum payment option below a pre-determined threshold for certain eligible former employees who are vested participants of the U.S. Qualified Defined Benefit Pension Plan.  The distribution of the lump-sums was substantially completed by the end of fiscal 2016. The amount distributed in 2016 was approximately $420 million. These distributions from the plan did not have a material impact on the Company’s financial position.

 
 
 
 
 
 
 
 
 
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2016
 
2015
 
2016
 
2015
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
 
 
 
 
 
 
 
 
Net periodic benefit cost
 
$
422

 
971

 
477

 
604

Net actuarial (gain) loss
 
1,965

 
(75
)
 
(72
)
 
(389
)
Amortization of net actuarial loss
 
(496
)
 
(745
)
 
(135
)
 
(201
)
Prior service cost (credit)
 
(48
)
 
60

 
—

 
—

Amortization of prior service (cost) credit
 
(1
)
 
(2
)
 
34

 
33

Effect of exchange rates
 
(218
)
 
(218
)
 
(1
)
 
(1
)
Total recognized in other comprehensive income, before tax
 
$
1,202

 
(980
)
 
(174
)
 
(558
)
Total recognized in net periodic benefit cost and other comprehensive income
 
$
1,624

 
(9
)
 
303

 
46

  
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2016 and December 31, 2015, respectively:

 
U.S. Plans
International Plans
 
Qualified Plans
Non-Qualified Plans
Funded Plans
Unfunded Plans
(Dollars in Millions)
2016
2015
2016
2015
2016
2015
2016
2015
Plan Assets
$
16,057

15,113

—

—

7,576

7,141

—

—

Projected Benefit Obligation
16,336

15,280

1,905

1,675

9,502

8,542

373

358

Accumulated Benefit Obligation
14,759

13,876

1,568

1,411

8,663

7,661

329

314

Over (Under) Funded Status
 
 
 
 
 
 
 
 
Projected Benefit Obligation
$
(279
)
(167
)
(1,905
)
(1,675
)
(1,926
)
(1,401
)
(373
)
(358
)
Accumulated Benefit Obligation
1,298

1,237

(1,568
)
(1,411
)
(1,087
)
(520
)
(329
)
(314
)
  
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022-2026
Projected future benefit payments
 
 
 
 
 
 
 
 
 
 
 
 
Retirement plans
 
$
897

 
908

 
958

 
1,010

 
1,081

 
6,416

Other benefit plans 
 
$
325

 
315

 
311

 
307

 
304

 
1,465

  
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)
 
2017
 
2018
 
2019
 
2020
 
2021
 
2022-2026
Projected future contributions
 
$
83

 
84

 
89

 
94

 
100

 
610

  
Company' Retirement Plan Asset Allocation and Target Allocations
The Company’s retirement plan asset allocation at the end of 2016 and 2015 and target allocations for 2017 are as follows:
 
 
Percent of
Plan Assets
 
Target
Allocation
 
 
2016
 
2015
 
2017
Worldwide Retirement Plans
 
 
 
 
 
 
Equity securities
 
75
%
 
79
%
 
73
%
Debt securities
 
25

 
21

 
27

Total plan assets
 
100
%
 
100
%
 
100
%
  
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2016 and December 31, 2015:
 
 
Quoted Prices
in Active
Markets for
Identical Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs(a)
 
Investments Measured at Net Asset Value(b)
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
Total Assets
(Dollars in Millions)
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
2016
 
2015
Short-term investment funds
 
$
145

 
184

 
652

 
312

 
—

 
—

 
—

 
—

797

 
496

Government and agency securities
 
—

 
—

 
2,655

 
1,767

 
—

 
—

 
—

 
—

2,655

 
1,767

Debt instruments
 
—

 
—

 
1,237

 
1,050

 
—

 
1

 
—

 
—

1,237

 
1,051

Equity securities
 
11,433

 
11,317

 
12

 
11

 
—

 
—

 
—

 
—

11,445

 
11,328

Commingled funds
 
—

 
—

 
1,316

 
1,100

 
—

 
—

 
5,767

 
6,122

7,083

 
7,222

Insurance contracts
 
—

 
—

 
—

 
—

 
24

 
23

 
—

 
—

24

 
23

Other assets
 
—

 
—

 
—

 
107

 
—

 
—

 
392

 
260

392

 
367

Investments at fair value
 
$
11,578

 
11,501

 
5,872

 
4,347

 
24

 
24

 
6,159

 
6,382

23,633

 
22,254



(a) The activity for the Level 3 assets is not significant for all years presented.
(b) Per adoption of ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. As per ASU 2015-7 prior year amounts have been reclassified to conform to the current year presentation. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total retirement plan assets.