11-K 1 commercial11.htm 2011 P&G COMMERCIAL ESP commercial11.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form 11-K
 
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010, OR
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ to _________
 
 
Registration number: 33-50273
 
 
A.
Full title of the plan and the address of the plan, if different from that of the issuer named below: The Procter & Gamble Commercial Company Employees’ Savings Plan, Two Procter & Gamble Plaza, Cincinnati, Ohio 45202.
 
B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: c/o The Procter & Gamble Company, One Procter & Gamble Plaza, Cincinnati, Ohio 45202.
 
 
REQUIRED INFORMATION
 
Item 4
Plan Financial Statements and Schedules Prepared in Accordance with the Financial Reporting Requirements of ERISA.
   
 
 
SIGNATURE
  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees (or other persons who administer the employee benefit plan) have duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
THE PROCTER & GAMBLE COMMERCIAL
COMPANY EMPLOYEES’ SAVINGS PLAN 
Date:   June 27, 2011                                                             
 
 
By: __/s/ Jennifer Ting________
          Jennifer Ting 
          Secretary of the Master Savings Plan Committee     
 
 
 
EXHIBIT INDEX
 
     23
Consent of Deloitte & Touche LLP
 


 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
The Procter & Gamble
Commercial Company
Employees’ Savings Plan
 
 
Financial Statements as of and for the Years Ended
December 31, 2010 and 2009, Supplemental
Schedules as of and for the Year Ended
December 31, 2010, and Report of
Independent Registered Public Accounting Firm
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 



THE PROCTER & GAMBLE COMMERCIAL
COMPANY EMPLOYEES’ SAVINGS PLAN
 
 
  TABLE OF CONTENTS    
       
       Page
       
  REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    1
       
  FINANCIAL STATEMENTS:    
       
 
 Statements of Net Assets Available for Benefits
    as of December 31, 2010 and 2009
    2
       
 
 Statements of Changes in Net Assets Available for Benefits
    for the Years Ended December 31, 2010 and 2009
    3
       
 
 Notes to Financial Statements as of and for the Years Ended
    December 31, 2010 and 2009
    4-10
       
  SUPPLEMENTAL SCHEDULES:    11
       
 
 Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets (Held at End of Year)
    as of December 31, 2010
    12
       
 
 Form 5500, Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
    for the Year Ended December 31, 2010
    13
       
 
 NOTE: All other schedules required by Section 2520.103-10 of the Department of Labor's Rules
       and Regulations for Reporting and Disclosure under the Employee Retirement Income
       Security Act of 1974 have been omitted because they are not applicable.
    
 
 
 
 
 
 
 
 

 
 
 


 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To The Procter & Gamble Master Savings Plan Committee:
 
We have audited the accompanying statements of net assets available for benefits of The Procter & Gamble Commercial Company Employees’ Savings Plan (the “Plan”) as of December 31, 2010 and 2009, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2010 and 2009, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.
 
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the table of contents are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan’s management. Such schedules have been subjected to the auditing procedures applied in the audit of the basic 2010 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.
 
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
 
Cincinnati, Ohio
June 24, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 

 
-1-
 

THE PROCTER & GAMBLE COMMERCIAL
      
COMPANY EMPLOYEES’ SAVINGS PLAN
      
       
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
    
AS OF DECEMBER 31, 2010 AND 2009
      
       
       
   
2010
    
2009
       
ASSETS
      
       
Cash and cash equivalents
  $           2,850
  
  $           2,847
Investments — at fair value:
      
  The Procter & Gamble Company common stock — 216,248 shares
    
    (cost, $9,796,700) at December 31, 2010; 227,635 shares
      
    (cost, $9,903,225) at December 31, 2009
      13,911,213
  
      13,801,483
  The J.M. Smucker Company common stock — 737 shares
      
    (cost, $24,851) at December 31, 2010; 808 shares
      
    (cost, $26,705) at December 31, 2009
             48,383
  
             49,897
  Mutual funds
      10,808,365
  
        9,629,767
       
           Total investments
      24,770,811
  
      23,483,994
       
RECEIVABLES — Notes receivable from participants
             48,323
  
             85,102
       
           Total assets
      24,819,134
  
      23,569,096
       
LIABILITIES — Excess contributions payable
                 -
  
             13,280
       
NET ASSETS AVAILABLE FOR BENEFITS
  $  24,819,134
  
  $  23,555,816
       
       
See notes to financial statements.
      
       
 
 
 
 
 
 

 
-2-
 
 
THE PROCTER & GAMBLE COMMERCIAL
    
COMPANY EMPLOYEES’ SAVINGS PLAN
    
     
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
    
     
     
 
2010
2009
     
ADDITIONS:
    
  Contributions:
    
    Participant contributions
  $       835,810
  $    1,058,227
    Employer contributions
           210,994
           314,940
     
           Total contributions
        1,046,804
        1,373,167
     
  Investment income:
    
    Net appreciation in fair value of investments
        1,839,217
        2,026,008
    Dividends and interest
           593,782
           450,870
     
           Net investment income
        2,432,999
        2,476,878
 
    
  Interest income on notes receivable from participants
               4,740
                  748
     
           Total additions
        3,484,543
        3,850,793
     
DEDUCTIONS:
    
  Benefits paid to participants
        2,209,624
        2,234,574
  Administrative expenses
             11,601
                  125
     
           Total deductions
        2,221,225
        2,234,699
     
TRANSFERS FROM OTHER QUALIFIED PLANS
                 -
        5,741,002
     
INCREASE IN NET ASSETS
        1,263,318
        7,357,096
     
NET ASSETS AVAILABLE FOR BENEFITS:
    
  Beginning of year
      23,555,816
      16,198,720
     
  End of year
  $  24,819,134
  $  23,555,816
     
     
See notes to financial statements.
    
     
 
 
 
 
 
 
 

 
-3-
 

THE PROCTER & GAMBLE COMMERCIAL
COMPANY EMPLOYEES’ SAVINGS PLAN
 
NOTES TO FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
 
 
1.  
DESCRIPTION OF THE PLAN
 
The following description of The Procter & Gamble Commercial Company Employees’ Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.
 
General — The Plan is a defined contribution plan covering all eligible employees of Procter & Gamble Commercial, LLC (the “Plan Sponsor”) and Olay LLC, (collectively, the “Companies”), subsidiaries of The Procter & Gamble Company (“P&G”). In order to be eligible to participate in the Plan, employees must be residents of Puerto Rico and have completed one year of service. The Procter & Gamble Master Savings Plan Committee controls and manages the operation and administration of the Plan. Banco Popular de Puerto Rico serves as the trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
 
During the year ended December 31, 2009, the Plan was amended as follows:
 
·  
Effective September 4, 2009, the assets of the Puerto Rican participants in The Gillette Company Employees’ Savings Plan (the “Gillette Plan”), another qualified plan sponsored by affiliates of the Companies, were merged with and into the Plan. Net assets received from the Gillette Plan amounted to $5,386,026. The Plan was further amended to reflect certain provisions applicable to accounts transferred from the Gillette Plan.
 
·  
The Gillette Company Employee Stock Ownership Plan (the “Gillette ESOP”), another qualified plan sponsored by affiliates of the Companies, transferred balances for terminated Puerto Rican employees who were not eligible for retiree medical coverage under the Companies’ health care plan(s) to the Plan, as allowed under both the Gillette ESOP and the Plan. Net assets received from the Gillette ESOP amounted to $354,976 during the year ended December 31, 2009.
 
·  
Effective October 31, 2009, all participants terminating employment with Procter & Gamble Pharmaceuticals Puerto Rico LLC in connection with the sale of the pharmaceutical business of P&G to a third party, became 100% vested in their account balances as of the effective date of the sale.
 
Contributions — Each year, participants may contribute up to 10% of their pretax annual compensation, as defined in the Plan, not exceeding the maximum deferral amount specified by Puerto Rico law. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Companies contribute 40% of the first 5% of eligible compensation that a participant contributes to the Plan. Contributions are subject to certain limitations.
 
Participant Accounts — Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, allocations of the Companies’ contributions and Plan earnings, and charged with withdrawals and an allocation of Plan losses and administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
 
 
 
 
 
 
 
 
 
 
 
-4-
 
Investments — Participants direct the investment of their contributions into various investment options offered by the Plan. The Companies’ contributions are automatically invested in The Procter & Gamble Company common stock (“P&G common stock”). The Plan currently offers six mutual funds (including a money market mutual fund) as investment options for participants. As of December 31, 2010 and 2009, the Plan's investment in P&G common stock represents a concentration in investments.
 
Vesting — Participants are vested immediately in their contributions, plus actual earnings thereon. The Companies’ contributions plus actual earnings thereon are 100% vested upon the occurrence of any of the following events: completion of three years of credited service; attaining age 65; total disability while employed by the Companies or death while employed by the Companies.
 
Payment of Benefits — On termination of service, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution.
 
Loans to Participants — New loans to participants are not permitted under the Plan. Participant loans included in the accompanying statement of net assets available for benefits represent outstanding loans granted to participants of the Gillette Plan prior to its merger with the Plan.
 
Forfeited Accounts — At December 31, 2010 and 2009, forfeited nonvested accounts totaled $8,680 and $40,871, respectively. These accounts can be used to reduce future employer contributions. Employer contributions were reduced by $32,582 for the year ended December 31, 2010.
 
2.  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Accounting — The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
 
Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
 
Risks and Uncertainties — The Plan utilizes various investment instruments, including common stock and mutual funds. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
 
Investment Valuation and Income Recognition — The Plan’s investments are stated at fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Quoted market prices are used to value investments. Fair value of the P&G common stock and The J.M. Smucker Company common stock (“Smucker common stock”) is determined by published composite trading prices. Shares of mutual funds are valued at quoted market prices, which represent the net asset value of shares held by the Plan at year-end.
 
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
 
Management fees and operating expenses charged to the Plan for investments in mutual funds are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
 
 
 
 
 
 
 
 
-5-
 
 
Notes Receivable from Participants — Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are recorded as distributions based on the terms of the Plan document.
 
Payment of Benefits — Benefit payments to participants are recorded upon distribution.
 
Administrative Expenses — Administrative expenses of the Plan are paid by the Plan unless paid by the Companies as provided in the Plan document.
 
Excess Contributions Payable — The Plan is required to return contributions received during the Plan year in excess of the Puerto Rico Internal Revenue Code of 1994 (1994 PRIRC) limits. As of December 31, 2009, the Plan recorded a liability in the amount of $13,280 payable to certain participants for excess contributions. As of December 31, 2010, the Plan had no liability for excess contributions payable.
 
New Accounting Standards
 
ASU No. 2010-06, Fair Value Measurements and Disclosures — In January 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-06, Fair Value Measurements and Disclosures which amends ASC 820, Fair Value Measurements and Disclosures, adding new disclosure requirements for Levels 1 and 2, separate disclosures of purchases, sales, issuances, and settlements relating to Level 3 measurements and clarification of existing fair value disclosures. ASU No. 2010-06 is effective for periods beginning after December 15, 2009, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010. The Plan prospectively adopted the new guidance in 2010, except for the Level 3 reconciliation disclosures, which are required in 2011. The adoption in 2010 did not materially affect, and the future adoption is not expected to materially affect, the Plan’s financial statements.
 
ASU No. 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans — In September 2010, the FASB issued ASU No. 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans. The ASU requires that participant loans be classified as notes receivable rather than a plan investment and measured at unpaid principal balance plus accrued but unpaid interest rather than fair value. The Plan retrospectively adopted the new accounting in 2010. The adoption did not have a material effect on the Plan’s financial statements.
 
3.  
FAIR VALUE MEASUREMENTS 
 
ASC 820, Fair Value Measurements and Disclosures, provides a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1, which refers to securities valued using unadjusted quoted prices from active markets for identical assets; Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to securities valued based on significant unobservable inputs. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Plan’s policy is to recognize significant transfers between levels at the actual date of the event or change in circumstances that caused the transfer.
 

 
-6-
 
 

The following tables set forth by level within the fair value hierarchy a summary of the Plan’s investments measured at fair value on a recurring basis at December 31, 2010 and 2009.
 


     Assets Measured at Fair Value at  December 31, 2010
                         
     
Quoted Prices in
    
Significant Other
    
Significant
      
     
Active Markets for
    
Observable
    
Unobservable
      
     
 Identical Assets
    
Inputs
    
Inputs
      
     
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
                         
Cash and cash equivalents
   $
          2,850
   $ 
         -
   $ 
       -
   $ 
     2,850
Mutual funds:
                        
  Money Market
    
         1,385,295
                
    1,385,295
  Equity
    
         6,101,099
                
     6,101,099
  Fixed Income
    
            952,223
                
       952,223
  Balanced
    
         2,369,748
                
     2,369,748
Common stock
    
       13,959,596
    
 
    
 
    
    13,959,596
                         
Total
   $ 
   24,770,811
   $ 
          -
   $ 
-               
  $ 
  24,770,811
                         



      Assets Measured at Fair Value at  December 31, 2009
                         
     
Quoted Prices in
    
Significant Other
    
Significant
      
     
Active Markets for
    
Observable
    
Unobservable
      
     
 Identical Assets
    
Inputs
    
Inputs
      
     
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
                         
Cash and cash equivalents
   $ 
          2,847
    $
           -
   $ 
        -
   $ 
     2,847
Mutual funds:
                        
  Money Market
    
            1,438,324
                
        1,438,324
  Equity
    
         5,113,222
                
    5,113,222
  Fixed Income
       896,988                   896,988
  Balanced
    
            2,181,233
                
        2,181,233
Common stock
    
         13,851,380
                
    13,851,380
                         
Total
  $ 
      23,483,994
    $
           -
   $ 
         -
   $ 
  23,483,994

For the years ended December 31, 2010 and 2009, there were no significant transfers in or out of Levels 1, 2 or 3.
 
 
 
 
 
 

 
-7-
 
 

 
4.  
INVESTMENTS
 
The Plan’s investments that represented five percent or more of the Plan’s net assets available for benefits at December 31, 2010 and 2009, are as follows:

 
   
2010
  
2009
     
The Procter & Gamble Company common stock (1)
  $  13,911,213
  $  13,801,483
Oakmark Equity & Income Fund I
  
*
        2,181,233
Royce Low Priced Stock Fund
  
*
        1,441,267
Vanguard Balanced Index Fund
        2,369,748
  
*
Vanguard Small Cap Index Fund
        1,871,819
  
*
BlackRock S&P 500 Stock Fund
        3,205,315
        2,810,366
JP Morgan Prime Money Market Fund (2)
        1,385,295
        1,438,324
     
(1) Nonparticipant directed and represents a party-in-interest to the Plan.
  
(2) Party-in-interest to the Plan.
    
* Investment option added or removed during the current year
  



During the years ended December 31, 2010 and 2009, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:
 

   
2010
    
2009
       
Common stock
  $     840,085
  
  $     437,411
Mutual funds
         999,132
  
      1,588,597
       
Net appreciation in fair value of investments
  $  1,839,217
  
  $  2,026,008



5.  
NONPARTICIPANT-DIRECTED INVESTMENTS
 
Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments (P&G common stock) as of December 31, 2010 and 2009, and for the years then ended, is as follows:
 

   
2010
    
2009
       
Changes in net assets:
      
  Contributions
  $      610,291
  
  $      777,793
  Net appreciation in fair value of investments
          837,070
  
          422,309
  Dividends
          417,837
  
          312,600
  Benefits paid to participants
     (1,537,251)
  
     (1,607,625)
  Net transfers to participant-directed investments
        (218,759)
  
           (33,280)
  Loan repayments
               2,347
  
                  613
  Transfers in from other qualified plans
  
            -
  
       4,063,489
  Management fees
             (1,819)
    
        -
  Other receipts/disbursements
                    14
  
                (854)
       
           Net change
          109,730
  
       3,935,045
       
The Procter & Gamble Company common stock —
      
  beginning of year
     13,801,483
  
       9,866,438
       
The Procter & Gamble Company common stock — end of
    
  year
  $ 13,911,213
  
  $ 13,801,483




 
 
-8-
 




6.  
EXEMPT PARTY-IN-INTEREST TRANSACTIONS
 
Certain Plan investments are shares of mutual funds managed by JP Morgan. JP Morgan Retirement Plan Services performs record keeping and administrative services for the Plan and, therefore, transactions with JP Morgan related entities qualify as party-in-interest transactions. In addition, the Plan has an interest bearing deposit with Banco Popular de Puerto Rico, the trustee for the Plan. Fees paid by the Plan for investment management and trustee services were not significant for the years ended December 31, 2010 and 2009.
 
At December 31, 2010 and 2009, the Plan held 216,248 and 227,635 shares, respectively, of P&G common stock, with a cost basis of $9,796,700 and $9,903,225, respectively. Related dividend income for the years ended December 31, 2010 and 2009, amounted to $417,837 and $312,600, respectively.
 
7.  
PLAN TERMINATION
 
Although they have not expressed any intention to do so, the 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 ERISA. In the event that the Plan is terminated, participants would become 100% vested in their accounts.
 
8.  
TAX STATUS
 
The Plan is exempt from Puerto Rico income taxes under the provisions of the 1994 PRIRC, as amended. The Plan is not qualified under Section 401(a) of the U.S. Internal Revenue Code, but it is exempt from U.S. taxation under Section 1022 of the Employee Retirement Income Security Act of 1974.  The Plan is subject to routine audits by taxing jurisdictions at any time.  The Companies and Plan management believe that the Plan is currently designed and operated in compliance with the applicable requirements of the 1994 PRIRC and the Plan and the related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
 
Subsequent Event - On January 31, 2011, a new Puerto Rico Internal Revenue Code (the “2011 PRIRC”) was enacted, which replaces the 1994 PRIRC, as amended. The 2011 PRIRC modifies rules concerning contributions limits, coverage requirements, non-discrimination testing, and other matters. The 2011 PRIRC also provides for certain changes applicable to plans sponsored by entities under common control. These changes are effective for periods commencing after December 31, 2010, with certain additional requirements beginning on January 1, 2012.
 
9.  
RECONCILIATION OF FINANCIAL STATEMENTS TO THE FORM 5500
 
Reconciliation of net assets available for benefits as shown in the financial statements to those in the Form 5500 as filed by the Plan as of December 31, 2010 and 2009, is as follows:
 
 
   
2010
    
2009
       
Net assets available for benefits per the financial statements
 $    24,819,134
  
       23,555,816
Certain deemed distributions of participant loans
            (22,369)
  
                       -
       
Net assets available for benefits per Form 5500
 $    24,796,765
  
 $    23,555,816


 
 
 
 
 
 
 
 
 
 
 
 
-9-
 

Reconciliation of distributions made from the Plan as shown in the financial statements to those in the Form 5500 for the year ended December 31, 2010, is as follows:
 

Benefits paid to participants per the financial statements
  $  2,209,624
Plus deemed loans distributions
  $       32,417
Less deemed loans distributed previously
         (10,934)
   
Benefits paid to participants per the Form 5500
  $  2,231,107



For the year ended December 31, 2010, the following is a reconciliation of net investment income per the financial statements to the Form 5500:
 

Total net investment income per the financial statements
  $   2,432,999
Interest income on notes receivable from participants per the financial statements
  $          4,740
Less interest on deemed distributions
                (886)
   
Total income on investments per the Form 5500
  $   2,436,853

 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
-10-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
SUPPLEMENTAL SCHEDULES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
-11-
 
 



THE PROCTER & GAMBLE COMMERCIAL
    
COMPANY EMPLOYEES’ SAVINGS PLAN
    
         
FORM 5500, SCHEDULE H, PART IV, LINE 4i — SCHEDULE OF ASSETS
(HELD AT END OF YEAR)
        
AS OF DECEMBER 31, 2010
      
EIN:  66-0676831
        
PLAN:  002
        
         
         
   
Description of
    
Identity of Issue
  
 Investment
Cost
  
Fair Value
         
The Procter & Gamble Company
*
Common stock
  $ 9,796,700
  $ 13,911,213
         
The J.M. Smucker Company
  
Common stock
**
           48,383
       
 
Vanguard Inflation Protected Securities
  
 
  Fund
  
Mutual fund
**
            8,786
         
Vanguard Balanced Index Fund
  
Mutual fund
**
      2,369,748
       
 
Vanguard Total Bond Market Index
      
  Fund
  
Mutual fund
**
         943,437
         
Vanguard Small Cap Index Fund
  
Mutual fund
**
      1,871,819
       
 
Vanguard FTSE All-World EX US Index
    
  fund
  
Mutual fund
**
      1,023,965
         
BlackRock S&P 500 Stock Fund
  
Mutual fund
**
      3,205,315
         
JP Morgan Prime Money Market
      
  Fund
*
Mutual fund
**
      1,385,295
         
JP Morgan Chase Bank
*
Deposit
212
               212
         
Banco Popular de P.R.
  
Time deposit open account
    
  (Time Deposit)
*
  bearing interest at a variable rate
  
   
  (.20% at December 31, 2010)
  2,638
            2,638
         
Participants loans
***
    
           25,954
         
Total
      
  $ 24,796,765
         
         
     * Party-in-interest.
        
  ** Cost information is not required for participant-directed investments and therefore is not included.
*** 11 loans were outstanding at December 31, 2010, bearing interest at rates ranging from 4.25% to 9.25%.
         
 
 
 
 
 

 
-12-
 
 


THE PROCTER & GAMBLE COMMERCIAL
          
COMPANY EMPLOYEES’ SAVINGS PLAN
        
           
FORM 5500, SCHEDULE H, PART IV, LINE 4j — SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
        
EIN:  66-0676831
          
PLAN:  002
          
           
           
SINGLE TRANSACTIONS — None.
          
           
SERIES OF TRANSACTIONS
          
       
Current
  
       
Value of
  
       
Asset on
Net
 
Purchase
Sales
Cost of
Transaction
Gain
Description of Asset
Amount
Amount
Asset
Date
on Sale
           
The Procter & Gamble Company common stock *
 $   1,080,209
 $        -           
 $   1,080,209
 $   1,080,209
$       -        
The Procter & Gamble Company common stock *
-               
      1,637,271
      1,035,394
      1,637,271
    601,877
           
     * Party-in-interest.
          
 
 
 
 

 
-13-