5. Investments
At December 31, 2007 and 2006 the cost and fair values of the investments are summarized as follows (in thousands):
| 2007 | 2006 | |||
|---|---|---|---|---|
| Cost | Fair Value | Cost | Fair Value | |
| Johnson & Johnson common stock 42,343,491 and 55,983,308 shares in 2007 and 2006, respectively | $25,288 | $2,824,311 | $33,434 | $3,696,018 |
| Other equity investments | ||||
| Domestic equities | 2,206,650 | 2,448,859 | 1,816,493 | 2,034,872 |
| International equities | 437,697 | 619,620 | 436,570 | 657,184 |
| Alternative investments–limited partnerships | 2,915,822 | 3,451,865 | 2,125,153 | 2,459,712 |
| Fixed income investments | 786,599 | 831,734 | 744,896 | 729,630 |
| $6,372,056 | $10,176,389 | $5,156,546 | $9,577,416 | |
Other equity investments includes approximately $135 million and $166 million transferred at 2007 and 2006 year-end, respectively, and held in non-interest bearing or money market accounts by several limited partnerships pending investment subscription start dates of January 1, 2008 and 2007, respectively.
Included in Domestic equities and International equities at December 31, 2007 and 2006 were approximately $241 million and $198 million, respectively, of securities on loan pursuant to a securities lending agreement. Cash collateral received for securities on loan was $261 million and $207 million at December 31, 2007 and 2006, respectively. Original collateral received on domestic and international securities lent was at least 102 percent of market value. All cash collateral received is invested in approved money market and short-term funds.
Pursuant to its limited partnership agreements, as of December 31, 2007 and 2006, the Foundation had commitments of approximately $2,493 million and $1,955 million, respectively, which are expected to be funded over the next three to five years.
The Foundation purchases and sells forward foreign currency contracts whereby the Foundation agrees to exchange one currency for another on an agreed-upon date at an agreed-upon exchange rate to minimize the exposure of certain of its investments to adverse fluctuations in currency markets. At December 31, 2007 and 2006, the Foundation had open forward foreign currency contracts with notional amounts totaling $837,000 and $650,000, respectively. Included in the statement of financial position at December 31, 2007 at fair value were pending receivables and pending payables of approximately $842,000 and $840,000, respectively, and pending receivables and pending payables of approximately $660,000 and $680,000, respectively at December 31, 2006. Such contracts involve, to varying degrees, the possible inability of counterparties to meet the terms of their contracts. Changes in the value of forward foreign currency contracts are recognized as unrealized gains or losses until such contracts are closed.
The net realized gains on sales of securities for 2007 and 2006 were as follows (in thousands):
| 2007 | 2006 | |
|---|---|---|
| Johnson & Johnson common stock | $861,549 | $460,441 |
| Other securities, net | 639,930 | 605,660 |
| Less, Federal and state tax | (36,300) | (21,201) |
| $1,465,179 | $1,044,900 |