The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
PROCTER & GAMBLE IRELAND
EMPLOYEES SHARE OWNERSHIP PLAN (1998)
The Plan's investment in Company common stock experienced net appreciation / (depreciation) in value as follows for the years ended June 30, 2017, 2016, and 2015:
|
|
2017
|
|
2016
|
|
2015
|
|
|
€
|
|
€
|
|
€
|
|
The Procter & Gamble Company
|
|
|
|
|
|
|
common stock
|
|
|
|
|
|
|
Net (depreciation) / appreciation
|
(95,110)
|
|
317,259
|
|
593,471
|
The realized gain on sales of Company common stock for the years ended June 30, 2017, 2016 and 2015 was determined using an average cost method as follows:
|
|
2017
|
2016
|
2015
|
|
|
€
|
€
|
€
|
|
Proceeds on sales of shares
|
1,309,609
|
498,363
|
522,866
|
|
Cost
|
(1,279,755)
|
(459,290)
|
(393,035)
|
|
Realised gain on sales of shares
|
29,854
|
39,073
|
129,831
|
Distributions payable represent dividends and proceeds from disposals owed to participants and were €39,232 and €41,497 at June 30, 2017 and 2016, respectively. Dividends received by the Plan are separately payable to participants in accordance with the Plan agreement.
6.
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FEDERAL INCOME TAX STATUS
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The Plan is not qualified under Section 401(a) of the Internal Revenue Code and is exempt from the provisions of Title I of ERISA pursuant to Section 4(b) (4) thereof. The Company believes that the fiduciary should be viewed as a directed custodian and that, for U.S. tax purposes, the participating employees should be treated as the owners of the shares of the Company's common stock held for their account under the Plan.
GAAP requires plan administrators to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS or the Department of Labor. The Plan administrators have analyzed the tax positions taken by the Plan, and have concluded that as of June 30, 2017 and 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan administrators believe it is no longer subject to income tax examinations for years prior to 2013.
The Irish Tax Authority has determined and informed the Company that it is an approved Employee Share Scheme under Irish tax legislation. Therefore, the Plan Administrator believes that the Plan was qualified and tax-exempt as of June 30, 2016 and 2015 and no provision for income taxes has been reflected in the accompanying financial statements.
PROCTER & GAMBLE IRELAND
EMPLOYEES SHARE OWNERSHIP PLAN (1998)
7.
PARTICIPATING PROCTER & GAMBLE COMPANIES
The participating Procter & Gamble Companies are as follows:
·
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Procter & Gamble (Manufacturing) Ireland Ltd;
|
·
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Procter & Gamble (HABC) Ltd; and
|
·
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Procter & Gamble (L&CP) Ltd;
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8.
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RELATED PARTY TRANSACTIONS
|
At June 30, 2017 and 2016, the Plan held 41,867
and 54,603 shares, respectively, of common stock of the Company, the sponsoring employer, with a cost basis of €3,027,199
and €3,569,415 respectively. Contributions from participating Procter & Gamble Companies of €384,268, €566,551 and €557,606 were recorded for the years ended June 30, 2017, 2016 and 2015 respectively.
Amounts due from participating Procter & Gamble Companies of €59,423 and €100,756 were recorded at June 30, 2017 and 2016 respectively. During the years ended June 30, 2017, 2016 and 2015, the Plan recorded dividend income from The Procter & Gamble Company common stock of €125,056, €130,666 and €125,084 respectively.
Although they have not expressed any intent to do so, the participating Procter & Gamble Companies have the right under the Plan to discontinue their contributions at any time and to terminate the Plan subject to the provisions set forth in the Plan agreement.
PROCTER & GAMBLE IRELAND
EMPLOYEES SHARE OWNERSHIP PLAN (1998)
The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through September 18, 2017, the date the financial were available to be issued. No other events have occurred that require adjustment to or disclosure in the financial statement of the Plan.