Proctor and Gamble 2008 Annual Report Download - page 71
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Amountsinmillionsofdollarsexceptpershareamountsorasotherwisespecied.
Other
PensionBenets RetireeBenets
YearsendedJune30 2007 2007
Noncurrentassets $ 469 $347
Currentliability (40) (12)
Noncurrentliability (2,898) (503)
(2,469) (168)
Netactuarialloss 379 337
Priorservicecost(credit) 172 (185)
551 152
Netactuarialloss—
currentyear n/a n/a
Priorservicecost(credit)—
currentyear n/a n/a
Amortizationofnet
actuarialloss n/a n/a
Amortizationofprior
service(cost)/credit n/a n/a
Settlement/Curtailmentcost n/a n/a
Currencytranslation
andother n/a n/a
Theunderfundingofpensionbenetsisprimarilyafunctionofthe
differentfundingincentivesthatexistoutsideoftheU.S.Incertain
countries,therearenolegalrequirementsornancialincentives
providedtocompaniestopre-fundpensionobligations.Inthese
instances,benetpaymentsaretypicallypaiddirectlyfromthe
Company’scashastheybecomedue.
Theaccumulatedbenetobligationforalldenedbenetretirement
pensionplanswas$8,750and$8,611atJune30,2008andJune30,
2007,respectively.Pensionplanswithaccumulatedbenetobligations
inexcessofplanassetsandplanswithprojectedbenetobligationsin
excessofplanassetsconsistofthefollowing:
AccumulatedBenet ProjectedBenet
ObligationExceedsthe ObligationExceedsthe
FairValueofPlanAssets FairValueofPlanAssets
YearsendedJune30 2007 2007
Projectedbenetobligation $4,813 $6,763
Accumulatedbenet
obligation 4,294 5,792
Fairvalueofplanassets 1,973 3,825
Net Periodic Benet Cost. Componentsofthenetperiodicbenet
costwereasfollows:
PensionBenets OtherRetireeBenets
YearsendedJune30 2007 2006 2007 2006
Servicecost $279 $265 $ 85 $ 97
Interestcost 476 383 206 179
Expectedreturn
onplanassets (454) (353) (407) (372)
Priorservice
cost(credit)
amortization 13 7 (22) (22)
Netactuarialloss
amortization 45 76 2 6
Curtailmentand
settlementgain (176) (4) (1) —
183 374 (137) (112)
DividendsonESOP
preferredstock — — (85) (78)
183 374 (222) (190)
Pursuanttoplanrevisionsadoptedduring2007,Gillette’sU.S.dened
benetretirementpensionplanswerefrozeneffectiveJanuary1,2008,
atwhichtimeGilletteemployeesintheU.S.movedintotheP&G
denedcontributionProtSharingTrustandEmployeeStockOwnership
Plan.Thisrevisionresultedina$154curtailmentgainfortheyear
endedJune30,2007.
Amountsexpectedtobeamortizedfromaccumulatedothercompre-
hensiveincomeintonetperiodbenetcostduringtheyearending
June30,2009,areasfollows:
Other
Pension Retiree
Benets Benets
Netactuarialloss $31 $ 4
Priorservicecost(credit) 17 (23)