Proctor and Gamble 2005 Annual Report Download - page 58
Download and view the complete annual report
Please find page 58 of the 2005 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’sDiscussionandAnalysisTheProcter&GambleCompanyandSubsidiaries
54
StockoptionsoutstandingatJune30,2005wereinthefollowing
exercisepriceranges:
StockoptionsexercisableatJune30,2005wereinthefollowingexercise
priceranges:
Note8PostretirementBenefitsandEmployeeStock
OwnershipPlan
TheCompanyoffersvariouspostretirementbenefitstoitsemployees.
DefinedContributionRetirementPlans
Themostprevalentemployeepensionplansofferedaredefined
contributionplans,whichcoversubstantiallyallemployeesintheU.S.,
aswellasemployeesincertainothercountries.Theseplansarefully
funded.Wegenerallymakecontributionstoparticipantsbasedon
individualbasesalariesandyearsofservice.IntheU.S.,thecontribution
issetannually.Totalcontributionshaveapproximated15%oftotal
participants’annualwagesandsalariesfor2005,2004and2003.
TheCompanymaintainsTheProcter&GambleProfitSharingTrust
(Trust)andEmployeeStockOwnershipPlan(ESOP)toprovideaportion
ofthefundingfortheU.S.definedcontributionplan,aswellasother
retireebenefits.OperatingdetailsoftheESOPareprovidedattheendof
thisNote.ThefairvalueoftheESOPSeriesAsharesreducesourcash
contributionrequiredtofundtheU.S.definedcontributionplan.Defined
contributionexpense,whichapproximatesourcashcontributionto
theplanthatisfundedinthesubsequentyear,was$203,$274and
$286in2005,2004and2003,respectively.
DefinedBenefitRetirementPlansandOtherRetireeBenefits
Certainotheremployees,primarilyoutsidetheU.S.,arecoveredbylocal
definedbenefitpensionplansaswellasotherretireebenefitplans.
TheCompanyalsoprovidescertainotherretireebenefits,primarily
healthcareandlifeinsurance,forsubstantiallyallU.S.employeeswho
becomeeligibleforthesebenefitswhentheymeetminimumageand
servicerequirements.Generally,thehealthcareplansrequirecost
sharingwithretireesandpayastatedpercentageofexpenses,reduced
bydeductiblesandothercoverages.Thesebenefitsprimarilyarefunded
byESOPSeriesBshares,aswellascertainotherassetscontributedby
theCompany.
TheMedicarePrescriptionDrug,ImprovementandModernizationAct
of2003introducedaMedicareprescription-drugbenefitbeginningin
2006aswellasafederalsubsidytosponsorsofretireehealthcare
plansthatprovideabenefitatleast“actuariallyequivalent”tothe
Medicarebenefit.TheimpactofthisActwasincludedintheJune30,
2004measurementprocessforotherretireebenefitplans.TheActdid
nothaveamaterialimpacttothenetperiodicretireemedicalbenefit
costortoexpectedbenefitpayments.
ObligationandFundedStatus.WeuseaJune30measurementdatefor
ourdefinedbenefitretirementplansandotherretireebenefitplans.The
followingprovidesareconciliationofbenefitobligations,planassets
andfundedstatusoftheseplans:
NotestoConsolidatedFinancialStatementsTheProcter&GambleCompanyandSubsidiaries
Millionsofdollarsexceptpershareamountsorotherwisespecified.
OutstandingOptions
WeightedAvg.
Number Remaining
Outstanding WeightedAvg. Contractual
RangeofPrices (Thousands) ExercisePrice LifeinYears
$20.29to31.02
31.25to34.84
35.10to46.24
48.73to56.52
ExercisableOptions
Number Weighted
Exercisable Average
RangeofPrices (Thousands) ExercisePrice
$20.29to31.02
31.25to34.84
35.10to46.24
48.73to56.52