21. Legal Proceedings
Johnson & Johnson and certain of its subsidiaries are involved in various lawsuits and claims regarding product liability,
intellectual property, commercial and other matters; governmental investigations; and other legal proceedings that arise
from time to time in the ordinary course of their business.
The Company records accruals for such contingencies when it is probable that a liability will be incurred and the amount
of the loss can be reasonably estimated. As of December 28, 2014, the Company has determined that the liabilities
associated with certain litigation matters are probable and can be reasonably estimated. The Company has accrued for
these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on
new information and further developments in accordance with ASC 450-20-25. For these and other litigation and
regulatory matters discussed below for which a loss is probable or reasonably possible, the Company is unable to
determine an estimate of the possible loss or range of loss beyond the amounts already accrued. These matters can be
affected by various factors, including whether damages sought in the proceedings are unsubstantiated or indeterminate;
scientific and legal discovery has not commenced or is not complete; proceedings are in early stages; matters present
legal uncertainties; there are significant facts in dispute; or there are numerous parties involved. Amounts accrued for legal
contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on
estimates and assumptions.
In the Company’s opinion, based on its examination of these matters, its experience to date and discussions with counsel,
the ultimate outcome of legal proceedings, net of liabilities accrued in the Company’s balance sheet, is not expected to
have a material adverse effect on the Company’s financial position. However, the resolution in any reporting period of one
or more of these matters, either alone or in the aggregate, may have a material adverse effect on the Company’s results of
operations and cash flows for that period.