[an error occurred while processing this directive] P&G 2009 AR – Supplemental Financial Information: Liability, Exit
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Note 3: Supplemental Financial Information

Selected components of current and noncurrent liabilities were as follows:

June 30 2009 2008
Accrued and Other Liabilities — Current  
Marketing and promotion $2,378 $ 2,760
Compensation expenses 1,464 1,527
Accrued Gillette exit costs 111 257
Taxes payable 722 945
Other 3,926 5,610
Total 8,601 11,099
Other Noncurrent Liabilities    
Pension benefits $3,798 $ 3,146
Other postretirement benefits 1,516 512
Unrecognized tax benefits 2,705 3,075
Other 1,410 1,421
Total 9,429 8,154

Gillette Acquisition

On October 1, 2005, we completed our acquisition of The Gillette Company (Gillette) for total consideration of $53.4 billion including common stock, the fair value of vested stock options and acquisition costs. In connection with this acquisition, we recognized an assumed liability for Gillette exit costs of $1.2 billion, including $854 in separation costs related to approximately 5,500 people, $55 in employee relocation costs and $320 in other exit costs. These costs are primarily related to the elimination of selling, general and administrative overlap between the two companies in areas like Global Business Services, corporate staff and go-to-market support, as well as redundant manufacturing capacity. These activities are substantially complete as of June 30, 2009. Total integration plan charges against the assumed liability were $51, $286 and $438 for the years ended June 2009, 2008 and 2007, respectively. A total of $106 and $121 of the liability was reversed during the years ended June 2009 and 2008, respectively, related to underspending on a number of projects that were concluded during the period, which resulted in a reduction of goodwill during those years.

Amounts in millions of dollars except per share amounts or as otherwise specified.

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