Debt Equity Commingled Insurance Other Total (Dollars in Millions) Instruments Securities Funds Contracts Assets Level 3 Balance December 28, 2008 $ 7 15 15 29 85 151 Realized gains (losses) — — — 3 — 3 Unrealized gains (losses) 2 (2) (2) — (3) (5) Purchases, sales, issuances and settlements, net (4) 2 13 — — 11 Balance January 3, 2010 5 15 26 32 82 160 Realized gains (losses) (1) — — (3) 1 (3) Unrealized gains (losses) 1 4 4 — (3) 6 Purchases, sales, issuances and settlements, net 8 5 5 — 2 20 Balance January 2, 2011 $13 24 35 29 82 183 LEVEL 3 GAINS AND LOSSES The table below sets forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended January 2, 2011 and January 3, 2010: The Company has voluntary 401 (k) savings plans designed to enhance the existing retirement programs covering eligible employ- ees. The Company matches a percentage of each employee’s contributions consistent with the provisions of the plan for which he/she is eligible. Total Company matching contributions to the plans were $157 million, $163 million and $166 million in 2010, 2009 and 2008, respectively. Components of other comprehensive income/(loss) consist of the following: Changes in treasury stock were: Aggregate shares of Common Stock issued were approximately 3,119,843,000 shares at the end of 2010, 2009 and 2008. Cash dividends paid were $2.110 per share in 2010, compared with dividends of $1.930 per share in 2009, and $1.795 per share in 2008. The tax effect on the unrealized gains/(losses) on the equity securi- ties was expense of $13 million in 2010, income of $14 million in 2009 and expense of $14 million in 2008. The tax effect related to employee benefit plans was $11 million, $302 million and $1,090 million in 2010, 2009 and 2008, respectively. The tax effect on the gains/(losses) on derivatives and hedges was expense of $54 million, $78 million and $70 million in 2010, 2009 and 2008, respectively. See Note 6 for additional information relating to derivatives and hedging. The currency translation adjustments are not adjusted for income taxes as they relate to permanent investments in international subsidiaries. JOHNSON & JOHNSON 2010 ANNUAL REPORT 58 (Amounts in Millions Except Treasury Stock Treasury Stock _______________________ Number of Shares in Thousands) Shares Amount Balance at December 30, 2007 279,620 $14,388 Employee compensation and stock option plans (29,906) (2,005) Conversion of subordinated debentures (19) (1) Repurchase of common stock 100,970 6,651 Balance at December 28, 2008 350,665 19,033 Employee compensation and stock option plans (22,161) (1,377) Conversion of subordinated debentures (96) (6) Repurchase of common stock 37,114 2,130 Balance at January 3, 2010 365,522 19,780 Employee compensation and stock option plans (28,827) (1,792) Conversion of subordinated debentures (39) (2) Repurchase of common stock 45,090 2,797 Balance at January 2, 2011 381,746 $20,783 Total Gains/ Accumulated Foreign Gains/ (Losses) on Other Currency (Losses) on Employee Derivatives Comprehensive (Dollars in Millions) Translation Securities Benefit Plans & Hedges Income/(Loss) December 30, 2007 $ 628 84 (1,360) (45) (693) 2008 changes Unrealized gain (loss) — (32) — 94 Net amount reclassed to net earnings — (27) — 72 Net 2008 changes (2,499) (59) (1,870) 166 (4,262) December 28, 2008 $(1,871) 25 (3,230) 121 (4,955) 2009 changes Unrealized gain (loss) — (52) — 38 Net amount reclassed to net earnings — (3) — (14) Net 2009 changes 1,363 (55) 565 24 1,897 January 3, 2010 $ (508) (30) (2,665) 145 (3,058) 2010 changes Unrealized gain (loss) — 99 — (333) Net amount reclassed to net earnings — (45) — 288 Net 2010 changes (461) 54 (21) (45) (473) January 2, 2011 $ (969) 24 (2,686) 100 (3,531) 12. Capital and Treasury Stock 11. Savings Plan 13. Accumulated Other Comprehensive Income