The 2015 annual report of The Procter & Gamble Company (P&G) is available at www.pginvestor.com. After reviewing P&G’s annual report, respond to the following questions.

a. Describe P&G’s outstanding commitments and contingencies as of June 30, 2015. Does the company consider these commitments and contingencies to be material?

b. What was the company’s effective tax rate for 2015? How much of the 2015 tax expense was deferred? P&G discloses deferred income taxes as a current asset and deferred income taxes as a noncurrent liability on its balance sheet. What is the difference between these two accounts (what do they represent)?

c. Describe some of P&G’s financial instruments and derivatives that it uses to manage its various business risks.

d. Describe P&G’s postretirement benefit plans for its employees. Evaluate the funding status of the company’s defined benefit pension plan in 2015. 

Is the plan fully funded relative to the benefit obligation (BO)? If not, how underfunded is this plan relative to the BO? Where is the underfunding reported on P&G’s balance sheet?