JOHNSON & JOHNSON — Annual Report 2008

Jun 23, 2008

11-K 1 y61230ae11vk.htm FORM 11-K 11-K PAGEBREAK

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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

þ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2007

OR

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-3215

JOHNSON & JOHNSON RETIREMENT 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)

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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 the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, have been omitted because they are not required or are not applicable.

Exhibits:

1. Consent of PricewaterhouseCoopers LLP, dated June 23, 2008

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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 RETIREMENT SAVINGS PLAN
By:	/s/ Kaye Foster Cheek
	Kaye Foster-Cheek
	Chairman, Pension Committee

June 23, 2008

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JOHNSON & JOHNSON RETIREMENT SAVINGS PLAN

FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE

DECEMBER 31, 2007 AND 2006

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Johnson & Johnson Retirement Savings Plan

Index to Financial Statements December 31, 2007 and 2006

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
– 11
Supplemental Schedule*:
Schedule H, line 4i — Schedule of Assets (Held at
End of Year)	12

/TOC

• 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.

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Report of Independent Registered Public Accounting Firm

To the Participants, the Pension Committee and the Compensation & Benefits Committee of the Johnson & Johnson Retirement 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 Retirement Savings Plan (the “Plan”) at December 31, 2007 and 2006, and the changes in net assets available for benefits for the year ended December 31, 2007 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 of Assets (Held at End of Year) 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

PricewaterhouseCoopers LLP Florham Park, New Jersey June 20, 2008

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Johnson & Johnson Retirement Savings Plan

Statements of Net Assets Available for Benefits December 31, 2007 and 2006

	2007
Assets
Interest in Johnson & Johnson Pension
and Savings Plans Master Trust, at fair value	$ 176,958,131	$	159,906,146
Total investments	176,958,131		159,906,146
Receivables
Employee contributions	—		392,437
Employer contributions	—		152,592
Total receivables	—		545,029
Total assets	176,958,131		160,451,175
Liabilities
Accrued expenses	95,016		15,904
Total liabilities	95,016		15,904
Net assets available for benefits, at fair value	176,863,115		160,435,271
Adjustment from fair value to contract value for
fully benefit-responsive investment contracts	(99,121	)	25,803
Net assets available for benefits	$ 176,763,994	$	160,461,074

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Statement of Changes in Net Assets Available for Benefits December 31, 2007

Additions to net assets attributed to
Investment income
Plan’s interest in the Johnson & Johnson Pension and
Savings Plans Master Trust net investment income	$ 6,961,289
Contributions
Employee contributions	16,760,826
Employer contributions	6,313,173
Total additions	30,035,288
Deductions from net assets attributed to
Benefits paid to participants	12,969,139
Administrative expenses	763,229
Total deductions	13,732,368
Net
increase/(decrease)	16,302,920
Net assets available for benefits
Beginning of year	160,461,074
End of year	$ 176,763,994

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

| 1. |
| --- |
| General |
| The Johnson & Johnson Retirement Savings Plan (the “Plan”) is a defined contribution plan
which was established on March 1, 1990 for eligible employees of certain participating
subsidiaries of Johnson & Johnson (“J&J” or the “Company”) located in Puerto Rico which have
adopted the Plan. The Plan was designed to provide eligible employees with an opportunity to
strengthen their financial security at retirement by providing an incentive to save and
invest regularly. The funding of the Plan is made through employee and Company
contributions. Beginning January 1, 2003, assets of the Plan are maintained in the Johnson &
Johnson Pension and Savings Plans Master Trust (the “Trust”). The Plan’s interest in the
Trust is allocated to the Plan based upon the total of each participant’s share in the
Trust. |
| State Street Bank and Trust Company (“State Street” or “Trustee”) serves as trustee, agent,
and custodian of the Plan for purposes of investment of the assets of the Trust, maintained
by Banco Popular de Puerto Rico. As such, State Street performs certain services for the
Plan, including the execution of certain participant directed investments, which are
commingled for investment purposes only with assets of other tax-qualified plans maintained
by J&J. |
| This brief description of the Plan is provided for general information purposes only.
Participants should refer to the Plan document for complete information. |
| Contributions |
| In general, salaried and hourly employees of participating J&J companies who are Puerto Rico
residents can contribute to the Plan immediately, as there is no service requirement for
employee contributions. |
| Contributions are made to the Plan by participants through payroll deductions and by the
Company on behalf of participants. Participating employees may contribute a minimum of 3%
up to a maximum of 10% pre-tax and/or a minimum of 1% up to a maximum of 10% post-tax of
their base salary. Annual pre-tax contributions may not individually exceed $8,000 in 2007
under Puerto Rico law. Effective January 1, 2007, participants age 50 and over are eligible
to contribute extra pre-tax contributions (“catch-up contribution”) above the annual limitations up to $1,000 in 2007. 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 contribution percentages that participants have elected. All employee
contributions are invested in any of the investment funds offered by the Plan at the
direction of the participating employees. |
| After one year of service, participants receive an employer matching contribution equal to 75% of the first 6% of his/her pretax contribution. The employer
matching contribution is composed of cash and invested in the current investment fund mix chosen by the participant. |
| Investment |
| 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. |
| For all other funds the Trustee reinvests all dividend and interest income. |

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

	Vesting
	A participant’s account in the Plan, including participant contributions, Company
contributions and earnings thereon, is always fully vested. As a result, there are no
forfeitures under the Plan.
	Payment of Benefits
	Benefits are paid to participants upon termination of employment or retirement.
Participants can elect to defer payment 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 or in
installments upon the participant’s death.
	Participants are allowed to withdraw their post-tax contributions and earnings thereon one
time per calendar year. Participants may withdraw pre-tax contributions only upon meeting
certain hardship conditions. The benefits to which participants are entitled are the
amounts provided by contributions and investment earnings thereon, including realized and
unrealized gains and losses which have been allocated to the participant’s account balance.
Participants have the option of receiving 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.
	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
	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. The majority of
the securities are traded on a national securities exchange and 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, which may include the investment manager.
Estimated fair market value for these securities, primarily fixed income,
are typically made using pricing matrices or models. Where readily
available, multiple pricing sources are used by the custodian bank to
verify these estimates.
	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 State
Street, 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.

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

| 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 net appreciation (depreciation) of 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. |
| Derivatives |
| The Trust will invest in securities from time to time that are denominated in currencies
other than the U.S. dollar. To hedge against adverse changes in foreign exchange rates
relating to non-U.S. dollar denominated investments, the Trust may enter into forward
foreign exchange contracts. Forward foreign exchange contracts qualify as a derivative
under Statement of Financial Accounting Standard, Accounting for Derivative Instruments and
Hedging Activities (“SFAS No. 133”). The holder is exposed to credit risk for
nonperformance and to market risk for changes in interest and currency rates. Those
instruments involve, to varying degrees, elements of credit risk in excess of the amount
recognized in the Statements of Net Assets Available For Benefits. The Trust attempts to
mitigate this credit risk by utilizing the same policies in making commitments and
conditional obligations as it does for on-balance sheet instruments, and through structured
trading with reputable parties and continual monitoring procedures. Accordingly the Trust
does not anticipate losses for nonperformance. The Trust does not require collateral or
other security to support forward foreign exchange contracts. The Trust accounts for
forward foreign exchange contracts at fair value. The Trust had forward exchange contracts
outstanding at December 31, 2007 and 2006 in various currencies. At December 31, 2007 and
2006, the notional amount outstanding for these contracts in the Trust was $7,090,172 and
$3,162,281, respectively, and the net currency (loss)/gain recognized during 2007 and 2006
by the Trust was $31,996 and ($94,770), respectively. The Trust held no other material
derivative financial instruments at December 31, 2007 and 2006. |
| Fair Value Measurements |
| In September 2006, the Financial Accounting Standards
Board (“FASB”) issued Statement of Financial Accounting Standards No. 157, Fair
Value Measurements . This statement defines fair value, establishes a framework for measuring
fair value in generally accepted accounting principles, and expands disclosures about fair
value measurements. The statement is effective for fiscal years beginning after November
15, 2007 and the Plan will adopt the statement and become effective in 2008. The Plan believes that the adoption
of SFAS No. 157 will not have a material effect on its
Statements of Net Assets Available for Benefits and Statement
of Changes in Net Assets Available for Benefits. |
| 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. |

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

| Risks and Uncertainties |
| --- |
| The Plan provides for various investment options in funds which can invest in equity and
fixed income securities. 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 |
| On December 29, 2005, the FASB released FASB Staff
Position Nos. AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment
Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide
and Defined-Contribution Health and Welfare and Pension Plans (the “FSP”), which became
effective for the Plan on December 31, 2006. The FSP requires that investment contracts
held by a defined-contribution plan be reported at fair value. However, 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. As required by the FSP, the Statements
of Net Assets Available for Benefits present the fair value of the investment contracts as
well as the adjustment of the fully benefit-responsive investment contracts from fair value
to contract value. The Statement of Changes in Net Assets Available for Benefits is
prepared on a contract value basis. |

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

| 3. |
| --- |
| Effective January 1, 2003, the assets of the Plan are maintained in the Johnson & Johnson
Pension and Savings Plans Master Trust. The Plan holds approximately 1.22% and 1.19%,
respectively of the Trust’s net assets as of December 31, 2007 and 2006. The Plan’s sole
investment is its interest in the Trust and therefore is greater than 5% of Plan assets. |
| Net assets, income, and expenses are allocated to the Plan based on the total of each
participant’s share in the respective funds. |
| The following table represents the total value of investments in the Trust: |

	As of December 31, — 2007	2006
Investments at fair value
Short term investment funds	$ 605,589,905	$	538,645,020
U.S. Government and Agency securities	1,004,959,948		1,086,336,359
Corporate debt	585,744,054		489,780,887
Preferred stock	13,447,079		11,726,687
Common stock	8,706,451,063		8,535,090,404
Common Collective Trusts	2,394,683,035		1,710,530,369
Equities and other	211,810,333		155,487,707
Deposits in group annuity contracts and synthetic GICs	1,130,884,176		1,063,517,625
Total Trust investments at fair value	14,653,569,593		13,591,115,058
Receivables	120,905,382		105,521,725
Liabilities	(299,589,886	)	(308,776,008	)
Adjustment from fair value to contract value for
fully benefit-responsive investment contracts	(13,390,868	)	4,133,018
Net assets held in the Trust	$ 14,461,494,221	$	13,391,993,793

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement 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,
	2007
Net appreciation/(depreciation) in fair value of investments
Short term investment funds	$ 39,548,410
U.S. Government and Agency securities	16,063,669
Corporate debt	319,586
Preferred stock	(241,552	)
Common stock	322,073,698
Common Collective Trusts	160,001,187
Equities and other	14,174,568
	551,939,566
Interest	169,127,618
Dividends	231,147,530
Net investment income	$ 952,214,714

| 4. |
| --- |
| The Trust holds investments in traditional and synthetic guaranteed investment contracts
(GICs). The weighted average insurance financial strength rating of the insurers for these
contracts is AA. These investments are recorded at their fair values. The traditional GICs’
contract value represents contributions made under the contract and reinvested income, less
any withdrawals. The synthetic GICs are recorded at the wrapper contract value, which
represents the value of the underlying assets owned by the Trust plus the amount designed to
smooth the impact of normal market fluctuations on those assets. Both the traditional and
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 traditional GICs provide a fixed return on principal over a specified period of time
through fully benefit-responsive contracts issued by an insurance company, which are backed
by the general account of that insurer. The contract value of the traditional GICs was
$668,248,591 and $690,625,785 at December 31, 2007 and 2006, respectively. The fair value of
the traditional GICs, as determined by using discounted cash flows, was $676,465,649 and
$685,036,934 December 31, 2007 and 2006, respectively. |
| The synthetic GIC provides 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, overall of AA+ credit quality, underlying the synthetic GIC
includes mortgages, corporate, and United States Treasury Notes and Bonds. The contract
value of the synthetic GIC was $449,244,716 and $377,024,858 at December 31, 2007 and 2006,
respectively. The fair value of the synthetic GICs, as determined by using discounted cash
flows, was $454,418,527 and $378,480,691 at December 31, 2007 and 2006, respectively. |

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

| | The crediting interest rates for the synthetic GIC is calculated on a quarterly basis using
the contract value, and the market value, yield and duration of the underlying securities,
and cannot be less than zero. The crediting interest rates for the traditional GICs are
agreed to in advance with the issuer. The crediting interest rate for the contracts at
December 31, 2007 and 2006 was 5.03% and 4.53%, respectively. Effective April 2007, the
crediting rate is calculated on a monthly basis, and no longer on a quarterly basis. In the
event of extreme changes in interest rates, the crediting rate may be adjusted to reflect
current market condition |
| --- | --- |
| | Key factors that could influence future average interest crediting rates include, but are
not limited to: participant directed cash flows; changes in interest rates; total return
performance of the fair market value bond strategies underlying the synthetic GIC contract;
default or credit failures of any of the securities, investment contracts, or other
investments held in the Plan; the initiation of an extended termination (immunization) of
the synthetic GIC contract. |
| | The average market value yield of the contracts for 2007 and 2006 was 4.86% and 4.35%,
respectively (calculated by taking the average of the monthly market value weighted yields
of the investments). The average yield earned by the contracts that reflects the actual
interest credited to participants for 2007 and 2006 was 4.60% and 4.20%, respectively
(calculated by dividing annualized earnings credited to participants by the market value of
the Interest Income Fund). |
| | There are certain events not initiated by Plan participants that limit the ability of the
Plan to transact with the issuer of a GIC at its contract value. Specific coverage provided
by each traditional GIC and synthetic GIC may be different from each issuer, and can be
found in the individual traditional GIC or synthetic GIC contracts held by the Plan.
Examples of such events include: the Plan’s failure to qualify under the Internal Revenue
Code 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 do not 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 with participants, is probable. |
| 5. | Tax Status |
| | The Associated Free State of Puerto Rico, Property Department, has determined and informed
the Company by a letter dated March 1, 1990, that the Plan constitutes as a qualified plan
under Section 165(a) of the Puerto Rico Income Tax Act of 1954 as amended (the “ITA”), and
the Plan and the related trust accounts are exempt from Puerto Rico income taxes under
Section 165(a) and 165(e) of the ITA. 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 Puerto Rico tax code. Therefore, no provision for income taxes has been
included in the Plan’s financial statements. |

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Notes to Financial Statements

6.	Related Party Transactions
	Certain Plan investments are shares of institutional commingled funds managed by State
Street Global Advisors, a division of State Street. State Street is the trustee as defined
by the Plan and, therefore, these transactions qualify as party-in-interest transactions. As
of December 31, 2007 the total market value of investments in the institutional commingled
funds in the Plan managed by State Street was $17,264,195.
	The Plan also invests in shares of the Company, which is managed by State Street Global
Advisors. The Company is the plan sponsor and, therefore, these transactions qualify as
party-in-interest transactions. As of December 31, 2007 the market value of investments in
the Johnson & Johnson Common Stock Fund managed by State Street was $107,360,508.
7.	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, — 2007	2006
Net assets available for benefits
per the financial statements	$ 176,763,994	$	160,461,074
Amounts allocated to withdrawing participants	(50,105	)	(49,852	)
Adjustment of synthetic GIC values from
contract value to fair value	38,297		9,089
Net assets available for benefits per the Form 5500	$ 176,752,186	$	160,420,311

	For the Year Ended
	December 31, 2007
Benefits paid to participants per the financial statements	$ 12,969,139
* Add: Amounts allocated to withdrawing participants at
December 31, 2007	50,105
Less: Amounts allocated to withdrawing participants
at December 31, 2006	(49,852	)
Benefits paid to participants per the Form 5500	$ 12,969,392

• 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, 2007 but not yet paid as of that date.

The accompanying notes are an integral part of these financial statements.

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Johnson & Johnson Retirement Savings Plan

Schedule H, line 4i — Schedule of Assets (Held at End of Year)

December 31, 2007

	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
Plan’s interest in the Trust	Plan’s interest in the Johnson & Johnson	—	$ 176,958,131
	Pension and Savings Plans Master Trust

The accompanying notes are an integral part of these financial statements.

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