Answer & Explanation:See below for question. (I check for plagiarism)View the attached Proctor & Gamble Annual Reporting. Refer to the most recent of P&G’s financial statements and the accompanying notes to address the following questions and topics:Using the notes to the consolidated financial statements, determine P&G’s revenue recognition policies. Discuss the impact of trade promotions on P&G’s financial statements.Give two examples in which historical cost information is reported in P&G’s financial statements and related notes. Give two examples of the use of fair value information reported in either the financial statements or related notes.How can we determine that the accounting principles used by P&G are prepared on a basis consistent with those of last year?What is P&G’s accounting policy related to advertising? What accounting principle does P&G follow regarding accounting for advertising? Where are advertising expenses reported in the financial statements?Your well-written paper must be two to three pages in length, in addition to the title and reference pages, and be formatted according to APA Guidelines. Cite at least three peer-reviewed sources, in addition to the required readings for this module.



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Annual Report
Letter to Shareowners����������������������������������������������������������������� 1
P&G — A Company of Leading Brands������������������������������������������ 6
Global Reach with a Human Touch���������������������������������������������� 8
Form 10-K Index�������������������������������������������������������������������������� 9
Form 10-K��������������������������������������������������������������������������������� 11
Measures Not Defined by U.S. GAAP����������������������������������������� 40
Global Company Leadership������������������������������������������������������ 81
Board of Directors��������������������������������������������������������������������� 82
Company and Shareowner Information������������������������������������� 83
Recognition������������������������������������������������������������������������������� 84
2015 (1)
Amounts in millions, except per share amounts
Net Sales
Operating Income
Net Earnings Attributable to Procter & Gamble
Net Earnings Margin from Continuing Operations
Diluted Net Earnings per Common Share from Continuing Operations (2)
Diluted Net Earnings per Common Share (2)
Dividends per Common Share
$  3.06
$  3.86
$  3.71
$  2.97
$  3.69
($ billions)
($ billions)
(per common share)
Baby, Feminine
and Family Care
Beauty, Hair and
Personal Care
Fabric Care and
Home Care
Health Care
10% 8%
Asia Pacific
Greater China
India, Middle East
and Africa (IMEA)
Latin America
North America
Various statements in this Annual Report, including estimates, projections, objectives and expected results, are “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,”
“should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks
and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties
discussed on pages 13–17 of this Annual Report. We undertake no obligation to update or revise publicly any forward-looking statements.
(1) Our 2015 net sales were negatively impacted by approximately $4.8 billion of unfavorable foreign exchange fluctuation compared to 2014. Net earnings
attributable to Procter & Gamble in 2015 were negatively impacted by approximately $1.4 billion due to foreign exchange, $2.1 billion of non-cash impairment
charges related to the Batteries business reported in discontinued operations and a $2.1 billion charge related to a change in accounting for our Venezuelan
operations from consolidation to the cost method. These impacts are discussed more fully later in this Annual Report.
(2) Diluted net earnings per share are calculated based on net earnings attributable to Procter & Gamble.
(3) These results exclude net sales in Corporate.
Brand names referenced in this Annual Report are trademarks of The Procter & Gamble Company or one of its subsidiaries. All other brand names are trademarks of
their respective owners.
Chairman of the Board,
President and
Chief Executive Officer
Dear Shareowners,
Fiscal 2015 was a tough year due to weakening developing
market economics and the unprecedented negative impact of
foreign exchange. Because we are a dollar-denominated
company headquartered in the U.S., and given the reality of
the geographic footprint of our business — with significant
exposures in markets such as Brazil, Japan and Russia — Company
worldwide sales and profits were negatively impacted by
foreign exchange.
All-in sales were down 5%, including the negative 6-point
impact of foreign exchange.
Organic sales grew 1%. Organic sales for our 10 core categories
grew 2%, about one point below underlying market growth.
On an all-in GAAP basis, earnings per share were $2.44, down
due to significant one-time charges and restructuring costs.
Core earnings per share were $4.02, down 2%, including a
13-point, $1.5 billion negative impact of foreign exchange. On a
constant currency basis, core earnings per share were up 11%.
2  The Procter & Gamble Company
Despite the sales and earnings pressures, we continued to generate strong
adjusted free cash flow of $11.6 billion, increased the dividend for the 59th year
in a row, and returned $11.9 billion to shareowners — $7.3 billion in dividends
and $4.6 billion in share repurchase. Over the past five years, we’ve returned
$60 billion to shareowners — $12 billion a year on average. We have announced
our intention to return up to $70 billion to shareowners over the next four
years through a combination of dividend payments, share retirement and
share repurchase.
Building a Better Company
In response to consumer demand, we
broadened our U.S. portfolio with Tide PODS
Plus Febreze, Tide PODS Free & Gentle and
Tide PODS Original Scent. These offerings
continue to fuel the Unit Dose segment, where
P&G’s global retail sales are over $1.5 billion.
This year, P&G will be 178 years old. A company does not last for that long if
its management is not willing to change anything and everything, except for its
purpose and core values, to serve consumers and create value for shareowners.
We are leading the most comprehensive series of changes in the Company’s
history. We are putting the strategies and capabilities in place to transform P&G
into a faster-growing, more profitable and far simpler company.
We are putting the strategies and capabilities in place
to transform P&G into a faster-growing, more profitable
and far simpler company.
We are recommitting ourselves to putting the consumer at the center of everything
we do. The purpose of any business is to create a consumer and to serve that
consumer better than anyone else can. That’s why we’re investing in capabilities to
understand consumer needs better than ever. That’s why we’re investing in creating
and building brands that consumers prefer. And that’s why we’re investing in
innovative products that deliver better performance, quality, experiences and value.
As we rededicate ourselves to the fundamentals of consumer-preferred brands
and products, what has changed at P&G? What’s different, and how are we
building a better P&G?
A More Focused Business Portfolio
Power Oral Care is an important P&G
business with annual sales over $1 billion,
including our most recent innovation — 
the first power toothbrush with Bluetooth®
technology. Current household penetration is
low, and we have significant growth potential
using our proven model to grow penetration.
We conducted a comprehensive diagnosis to answer a fundamental strategic
question: Which businesses should P&G be in? We chose 10 business categories
where P&G understands consumers and has leading market positions, strong
brands, differentiated products and business models proven to grow and
create value. These 10 categories have been growing faster, and their operating
margins are higher than those of the total Company. Their sales and profits are
highly concentrated in the top consumer markets around the world. Yet they
have significant growth opportunity in big, developed countries such as the U.S.,

The Procter & Gamble Company  3
Germany, the U.K. and Japan, where household penetration rates can still be
improved, and in developing markets such as China, Brazil, India, Russia, Turkey
and Mexico, where P&G has been improving its strategic position. They have
played and will continue to play to P&G’s core strengths: consumer understanding,
innovation, productivity, branding, go-to-market execution and leveraging
Company scale and scope.
After decades of category extension and geographic expansion to get bigger, we
are narrowing our focus to these 10 categories to get better. Ultimately, a more
focused P&G will lead to becoming the best-performing company in the consumer
products industry — winning with consumers and delivering the most consistent and
reliable performance in our chosen categories, countries, channels and customers.
Committed to Growth and Value Creation
At P&G, we win with shoppers and consumers by providing consumer-preferred
brands and products that become leading value creators in their categories.
The best measure of winning is Operating Total Shareholder Return (TSR). We like
Operating TSR because it is a single, coordinated and integrated measure of
growth and value creation that brings together winning with shoppers and
consumers to deliver sales growth, gross and operating margin improvement,
and asset efficiency.
SK-II, P&G’s billion-dollar prestige skin care
brand, has introduced two new essentials:
SK-II Mid-Day Miracle Essence and SK-II
Mid-Night Miracle Essence, to deliver a
boost of crystal-clear skin anytime, anywhere,
and strengthen the skin barrier over time.
The foundational building block of Operating TSR is operating cash flow, and
our strong cash flow performance for many years has enabled reinvestment in
the business and steady returns to shareowners. The second building block is
operating margins, which we have started to improve and will continue to
improve as we move into the core business portfolio and continue to execute
our innovation and productivity programs with excellence. The third building
block is organic sales growth, which has been modest, but will improve as we
build household penetration on more of our brands and introduce an even
stronger lineup of new and improved products that are coming to market over
the next one, two and three years.
Operating TSR is a balanced measure of performance, and everyone in the
Company — the technician on the manufacturing floor, the sales person in the
retail store, the scientist in the innovation lab — is focused on their contribution
to deliver consistent and reliable growth and value creation.
More Innovative and More Productive
We have always believed that product innovation is the lifeblood of our business.
We invent brands and products that create and transform categories, and that
build consumer trial and create value in those categories for years — often for
decades. Our brand and product innovations drive category market growth, which
creates value for our retail customers and suppliers. We’re rededicating ourselves
to product innovation that “wins from the top”— offering the best-performing
products in the category, with the highest quality, at a modest price premium — 
yielding superior consumer value and growth. We’re investing more in R&D and
We developed Pampers Premium Care
Pants to delight moms and babies with
comfort and skin protection. Pants are
the preferred style in many countries and
the fastest-growing segment of the diaper
market. They’re available in China and
Russia, and expanding to more markets.
4  The Procter & Gamble Company
meaningful product innovation. Early examples include Pampers Swaddlers and
Pants, Tide and Ariel PODS, Downy Unstopables, Pantene conditioners with
advanced Pro-V science, Gillette FlexBall and Venus Swirl, and Oral-B Powerbrush.
Each of these product innovations is building or is expected to build its category
and brand sales — and there are more to come.
We extended Gillette FlexBall innovation to
the market-leading women’s razor brand, with
Venus Swirl. We’ve sold over 2.5 million
Venus Swirl razors in the U.S., and Venus’ U.S.
share of women’s system razors has grown
over four points to 64% since Venus Swirl’s
January 2015 launch.
Innovation is our lifeblood, but what has changed is the realization that we cannot
deliver consistent and reliable growth and value creation without continuous
improvement in productivity. We are implementing the biggest supply chain
redesign in the Company’s history. We are moving to fewer categories, brands,
initiatives, product lines and SKUs. We are consolidating to fewer plants, agencies,
suppliers and organizations. We are focusing on fewer priorities and activities.
This is leading to lower costs in overhead, cost-of-goods-sold, marketing and
trade spending. In turn, this is driving more focus and more savings to reinvest in
accelerating growth of the leading brands, the most significant product innovations,
and the countries and customers with the highest potential for sales, profit and
cash growth.
Better Execution
We are rededicating ourselves to the power of execution. We are raising our
standards to be the best at execution. We are renewing focus on gaining trial
among consumers at the point of market entry. We are recommitting to superior
advertising to create awareness and sampling clearly superior-performing products
to attract consumers to our brands. We are investing in our sales force to build
profitable distribution and shelf assortment. We are investing in a more agile,
flexible and faster distribution network to reduce out-of-stocks and optimize
inventory. And we are renewing our manufacturing operations to improve quality
and to accelerate innovation at lower cash, capital and operating costs. Execution
is the only strategy a consumer sees, and we intend to be the best.
Better Balance
P&G is a company that needs balance to win. Whenever we get out of balance,
we underperform. We win when we deliver balanced sales growth and profit
growth. We win when we leverage both innovation and productivity. We win
when we have clear strategies and execute with excellence. Consumers and
shareowners expect balance from P&G. We are making changes to achieve this
balance, to deliver consistent and reliable growth and value creation for the
short-, mid- and long-term.
Stronger Ownership
Unstopables has expanded from in-wash
scent beads to a collection of products
delivering sophisticated scent experiences
for homes. With breakthrough fragrance
technology and long-lasting, high-quality
perfumes, sales of the Unstopables collection
have grown to nearly $300 million globally.
Personal leadership, accountability and ownership have always been core values
for P&G people. But as a company becomes bigger, more global and more complex,
it can become more difficult for individuals to feel strong personal ownership
in their connection to business unit success. We have simplified the organization
to bring a higher level of business ownership to each business leader and to

The Procter & Gamble Company  5
every P&G person. We have linked individual performance to each person’s
contribution to Operating TSR at every level of the Company. The intent is for
P&G people to be engaged in serving consumers and shoppers, driving product
innovation and productivity, sourcing and distributing brands and products,
and executing programs to win with consumers and shareowners — many of
whom are P&G employees.
Strong Leadership
On November 1, David Taylor will become P&G’s next CEO. David is an accomplished
leader with 35 years of proven results in many of P&G’s businesses and functions
in multiple markets around the world. His breadth of experience and track record
of success are strong. He is hands-on, with deep knowledge of consumers and
categories. He is focused and strategic, with strong operational leadership to take
action and execute with excellence. David has played a central role in working
with P&G leadership, the Board and me on developing the strategies and business
portfolio to win with consumers and deliver balanced growth and value creation.
As CEO, David will focus on leading P&G’s transformation with excellence.
As Executive Chairman, I look forward to supporting David, the leadership team
and you. I will continue to chair the Board of Directors and provide advice and
counsel to David and P&G leadership on Company and business unit strategies,
portfolio choices and organization decisions.
The NyQuil SEVERE and DayQuil SEVERE
launch was the largest in the Cold & Flu
category in North America since 2012,
delivering maximum-strength symptomfighting ingredients to consumers. SEVERE
gained trial in 8.5+ million households and
grew total DayQuil and NyQuil sales.
A Better P&G
We are transforming into a better P&G. The foundation is based on P&G’s
Purpose, Values and Principles. The consumer is at the center of everything we do.
We will win consistently with about 65 leading brands organized into 10 businesses
in industry-based sectors. We will go to market in six regions through about
30 country clusters. We will create value through consumer-preferred brands and
products that win at the zero, first and second moments of truth. We will play
P&G’s game to our core strengths — positioned to grow again through the power
of P&G brands, products and people. It won’t all happen immediately, and some
quarters will be better than others — but the choices we’ve made matter. The new
P&G will grow sales, profit and cash more consistently and more sustainably to
create value more reliably for P&G shareowners.
Chairman of the Board, President and Chief Executive Officer
Head & Shoulders, our largest shampoo
brand and the #1 shampoo brand globally,†
has grown organic sales for the past 20 years.
This year we launched the Instant Relief
Collection in the U.S., designed to provide
cooling scalp relief with the first wash.
P&G calculation based on Nielsen sales information.

6  The Procter & Gamble Company
P&G — A Company
of Leading Brands
20.2 billion
Subcategories: Baby Wipes,
Diapers and Pants
Subcategories: Paper Towels,
Tissues, Toilet Paper
Subcategories: Adult Incontinence,
Feminine Care
Subcategories: Fabric Enhancers,
Laundry Additives, Laundry
Subcategories: Air Care, Dish Care,
P&G Professional, Surface Care
22.3 billion

The Procter & Gamble Company  7
P&G is focusing on 10 product categories wit …
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