Proctor and Gamble 2008 Annual Report Download - page 70

Amountsinmillionsofdollarsexceptpershareamountsorasotherwisespecied.
68 TheProcter&GambleCompany NotestoConsolidatedFinancialStatements
AtJune30,2008,therewas$565ofcompensationcostthathasnot
yetbeenrecognizedrelatedtostockawards.Thatcostisexpectedto
berecognizedoveraremainingweightedaverageperiodof1.9years.
Cashreceivedfromoptionsexercisedwas$1,837,$1,422and$1,229
in2008,2007and2006,respectively.Theactualtaxbenetrealized
forthetaxdeductionsfromoptionexercisestotaled$318,$265and
$242in2008,2007and2006,respectively.
NOT E 9


Weoffervariouspostretirementbenetstoouremployees.

Wehavedenedcontributionplanswhichcoverthemajorityofour
U.S.employees,aswellasemployeesincertainothercountries.These
plansarefullyfunded.Wegenerallymakecontributionstoparticipants’
accountsbasedonindividualbasesalariesandyearsofservice.The
primaryU.S.denedcontributionplan(theU.S.DCplan)comprises
themajorityofthebalancesandexpensefortheCompany’sdened
contributionplans.FortheU.S.DCplan,thecontributionrateisset
annually.Totalcontributionsforthisplanapproximated15%oftotal
participants’annualwagesandsalariesin2008,2007and2006.
WemaintainTheProcter&GambleProtSharingTrust(Trust)and
EmployeeStockOwnershipPlan(ESOP)toprovideaportionofthe
fundingfortheU.S.DCplan,aswellasotherretireebenets.
OperatingdetailsoftheESOPareprovidedattheendofthisNote.
ThefairvalueoftheESOPSeriesAsharesallocatedtoparticipants
reducesourcashcontributionrequiredtofundtheU.S.DCplan.
Totaldenedcontributionexpensewas$290,$273,and$249in
2008,2007and2006,respectively.

Weofferdenedbenetretirementpensionplanstocertainemployees.
ThesebenetsrelateprimarilytolocalplansoutsidetheU.S.,andto
alesserextent,plansassumedintheGilletteacquisitioncoveringU.S.
employees.TheseacquiredGilletteplanswerefrozeneffective
January1,2008.
Wealsoprovidecertainotherretireebenets,primarilyhealthcareand
lifeinsurance,forthemajorityofourU.S.employeeswhobecome
eligibleforthesebenetswhentheymeetminimumageandservice
requirements.Generally,thehealthcareplansrequirecostsharing
withretireesandpayastatedpercentageofexpenses,reducedby
deductiblesandothercoverages.Thesebenetsareprimarilyfunded
byESOPSeriesBshares,aswellascertainotherassetscontributedby
theCompany.
Obligation and Funded Status. WeuseaJune30measurementdate
forourdenedbenetretirementplansandotherretireebenet
plans.Thefollowingprovidesareconciliationofbenetobligations,
planassetsandfundedstatusoftheseplans:
   Other
 PensionBenets(1) RetireeBenets(2)
YearsendedJune30   2007  2007


Benetobligationat
beginningofyear
(3)
  $9,244  $3,286
Servicecost   279  85
Interestcost   476  206
Participants’contributions   19  55
Amendments   24  12
Actuarial(gain)loss   1  80
Acquisitions(divestitures)   (8)  —
Curtailmentsand
settlements   (163)  (1)
Specialterminationbenets  1  2
Currencytranslation
andother   431  35
Benetpayments   (485)  (202)


(3)
 9,819  3,558

Fairvalueofplanassets
atbeginningofyear   6,203  3,091
Actualreturnonplanassets  736  429
Acquisitions(divestitures)   (2)  —
Employercontributions   565  30
Participants’contributions   19  55
Currencytranslation
andother   314  1
ESOPdebtimpacts
(4)  —  (14)
Benetpayments   (485)  (202)

 7,350  3,390
 (2,469)  (168)
(1)Primarilynon-U.S.-baseddenedbenetretirementplans.
(2)PrimarilyU.S.-basedotherpostretirementbenetplans.
(3)Forthepensionbenetplans,thebenetobligationistheprojectedbenetobligation.
Forotherretireebenetplans,thebenetobligationistheaccumulatedpostretirement
benetobligation.
(4)RepresentsincreasesintheESOP’sdebt,whichisnettedagainstplanassetsforOther
RetireeBenets.