The Procter & Gamble Company (P&G)

The financial statements of P&G are presented in Appendix 5B or can be accessed on the KWW website.

Instructions Refer to P&G‘s financial statements and the accompanying notes to answer the following questions.

(a) What kind of pension plan does P&G provide its employees in the United States?

(b) What was P&G’s pension expense for 2004, 2003, and 2002 for the United States?

(c) What is the impact of P&G’s pension plans for 2004 on its financial statements?

(d) What information does P&G provide on the target allocation of its pension assets? (Compare the asset allocation for “Pensions and Other Retiree Benefits.”) How do the allocations relate to the expected returns on these assets?