28 The Procter & Gamble Company Improving Productivity and Creating a Cost Savings Culture We have taken significant steps to accelerate cost savings and create a more cost-focused culture within the Company, including a five-year, $10 billion cost savings initiative, which was announced in February 2012.
The cost savings program is based on: ?
Reduction in overhead spending, with a target of approximately 5,700 non-manufacturing overhead positions by the end of fiscal year 2013.  ?
Annual savings planned in cost of goods across raw materials, manufacturing and transportation and warehousing expenses.  ?
Generating efficiencies to enable us to grow marketing costs at a slightly slower rate than sales growth while still increasing consumer reach and effectiveness, saving approximately $1 billion over the five year period.
Strengthening our Upstream Innovation Program and Pipeline Innovation has always been - and continues to be - P&G's lifeblood.
To consistently win with consumers around the world across price tiers and preferences, and to consistently win versus our best competitors, each P&G product category must have a full portfolio of innovation.
The innovation portfolios must include a mix of commercial programs, incremental product improvements and discontinuous innovations.
We have made the creation of more discontinuous innovation a top priority, dedicating R&D resources and funding to develop new innovations aimed at changing the game in existing product categories and creating new ones.
SUMMARY OF 2012 RESULTS
## Table 0 ##
?
Net sales increased 3% to $83.7 billion.
Organic sales increased 3%.
Unit volume was consistent with the prior year period as mid-single digit growth in developing regions was offset by a low single-digit decline in developed regions.  ?
Net earnings attributable to Procter & Gamble were $10.8 billion, a decrease of $1.0 billion or 9% versus the prior year period.
The decrease in net earnings attributable to Procter & Gamble was due to impairment charges, incremental restructuring charges and gross margin contraction, partially offset by net sales growth and the gain on the sale of the snacks business.
The impairment charges included $1.6 billion of beforetax non-cash goodwill and intangible asset impairment charges associated with the Appliances and Salon Professional businesses.
The incremental restructuring charges totaled $721 million before tax, resulting from the Company's productivity and cost savings plan announced during the year.
A 160-basis point decline in gross margin was driven primarily by higher commodity costs and negative mix, partially offset by price increases and manufacturing cost savings.
Net earnings from discontinued operations increased $1.4 billion due to the gain on the sale of the snacks business.  ?
Diluted net earnings per share from continuing operations decreased 19% to $3.12.
Diluted net earnings per share decreased 7% to $3.66, including earnings from discontinued operations of $0.54 per share.
Core EPS decreased 1% to $3.85.  ?
Cash flow from operating activities was $13.3 billion.
Free cash flow was $9.3 billion.
Free cash flow productivity was 85%.
ECONOMIC CONDITIONS, CHALLENGES AND RISKS We discuss expectations regarding future performance, events and outcomes, such as our business outlook and objectives, in annual and quarterly reports, press releases and other written and oral communications.
All such statements, except for historical and present factual
Defined Benefit Retirement Plans and Other Retiree Benefits We offer defined benefit retirement pension plans to certain employees.
These benefits relate primarily to local plans outside the U. S.  and, to a lesser extent, plans assumed in previous acquisitions covering U. S.  employees.
We also provide certain other retiree benefits, primarily health care and life insurance, for the majority of our U. S.  employees who become eligible for these benefits when they meet minimum age and service requirements.
Generally, the health care plans require cost sharing with retirees and pay a stated percentage of expenses, reduced by deductibles and other coverages.
These benefits are primarily funded by ESOP Series B shares and certain other assets contributed by the Company.
Obligation and Funded Status.
The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans:
## Table 1 ##
Pension Benefits(1)
## Table 2 ##
(1) Primarily non-U.
S. -based defined benefit retirement plans.
(2) Primarily U. S. -based other postretirement benefit plans.
(3) For the pension benefit plans, the benefit obligation is the projected benefit obligation.
For other retiree benefit plans, the benefit obligation is the accumulated postretirement benefit obligation.
(4) Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits.
The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U. S.  In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date.
In these instances, benefit payments are typically paid directly from the Company's cash as they become due.
WESTROCK COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 132 Our results of operations for the fiscal years ended September 30, 2019, 2018 and 2017 include share-based compensation expense of $64.2 million, $66.8 million and $60.9 million, respectively, including $2.9 million included in the gain on sale of HH&B in fiscal 2017.
Share-based compensation expense in fiscal 2017 was reduced by $5.4 million for the rescission of shares granted to our CEO that were inadvertently granted in excess of plan limits in fiscal 2014 and 2015.
The total income tax benefit in the results of operations in connection with share-based compensation was $16.3 million, $19.4 million and $22.5 million, for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.
Cash received from share-based payment arrangements for the fiscal years ended September 30, 2019, 2018 and 2017 was $61.5 million, $44.4 million and $59.2 million, respectively.
Equity Awards Issued in Connection with Acquisitions In connection with the KapStone Acquisition, we replaced certain outstanding awards of restricted stock units granted under the KapStone long-term incentive plan with WestRock stock options and restricted stock units.
No additional shares will be granted under the KapStone plan.
The KapStone equity awards were replaced with awards with identical terms utilizing an approximately 0.83 conversion factor as described in the Merger Agreement.
The acquisition consideration included approximately $70.8 million related to outstanding KapStone equity awards related to service prior to the effective date of the KapStone Acquisition – the balance related to service after the effective date will be expensed over the remaining service period of the awards.
As part of the KapStone Acquisition, we issued 2,665,462 options that were valued at a weighted average fair value of $20.99 per share using the Black-Scholes option pricing model.
The weighted average significant assumptions used were:
## Table 3 ##
In connection with the MPS Acquisition, we replaced certain outstanding awards of restricted stock units granted under the MPS long-term incentive plan with WestRock restricted stock units.
No additional shares will be granted under the MPS plan.
The MPS equity awards were replaced with identical terms utilizing an approximately 0.33 conversion factor as described in the merger agreement.
As part of the MPS Acquisition, we granted 119,373 awards of restricted stock units, which contain service conditions and were valued at $54.24 per share.
The acquisition consideration included approximately $1.9 million related to outstanding MPS equity awards related to service prior to the effective date of the MPS Acquisition – the balance related to service after the effective date will be expensed over the remaining service period of the awards.
Stock Options and Stock Appreciation Rights Stock options granted under our plans generally have an exercise price equal to the closing market price on the date of the grant, generally vest in three years, in either one tranche or in approximately one-third increments, and have 10-year contractual terms.
However, a portion of our grants are subject to earlier expense recognition due to retirement eligibility rules.
Presently, other than circumstances such as death, disability and retirement, grants will include a provision requiring both a change of control and termination of employment to accelerate vesting.
At the date of grant, we estimate the fair value of stock options granted using a Black-Scholes option pricing model.
We use historical data to estimate option exercises and employee terminations in determining the expected term in years for stock options.
Expected volatility is calculated based on the historical volatility of our stock.
The risk-free interest rate is based on U. S.  Treasury securities in effect at the date of the grant of the stock options.
The dividend yield is estimated based on our historic annual dividend payments and current expectations for the future.
Other than in connection with replacement awards in connection with acquisitions, we did not grant any stock options in fiscal 2019, 2018 and 2017.

Tables referenced above, in order (Table 0 first):
<table><tr><td>Amounts in millions, except per share amounts</td><td>2012</td><td>Change vs. Prior Year</td><td>2011</td><td>Change vs. Prior Year</td><td>2010</td></tr><tr><td>Net Sales</td><td>$83,680</td><td>3%</td><td>$81,104</td><td>5%</td><td>$77,567</td></tr><tr><td>Operating Income</td><td>13,292</td><td>-14%</td><td>15,495</td><td>-2%</td><td>15,732</td></tr><tr><td>Net Earnings from Continuing Operations</td><td>9,317</td><td>-20%</td><td>11,698</td><td>8%</td><td>10,851</td></tr><tr><td>Net Earnings from Discontinued Operations</td><td>1,587</td><td>593%</td><td>229</td><td>-89%</td><td>1,995</td></tr><tr><td>Net Earnings attributable to Procter & Gamble</td><td>10,756</td><td>-9%</td><td>11,797</td><td>-7%</td><td>12,736</td></tr><tr><td>Diluted Net Earnings per Common Share</td><td>3.66</td><td>-7%</td><td>3.93</td><td>-4%</td><td>4.11</td></tr><tr><td>Diluted Net Earnings per Share from Continuing Operations</td><td>3.12</td><td>-19%</td><td>3.85</td><td>11%</td><td>3.47</td></tr><tr><td>Core Earnings per Common Share</td><td>3.85</td><td>-1%</td><td>3.87</td><td>7%</td><td>3.61</td></tr></table>
<table><tr><td></td><td colspan="2">Pension Benefits<sup>-1</sup></td><td colspan="2">Other Retiree Benefits<sup>-2</sup></td></tr><tr><td>Years ended June 30</td><td>2012</td><td>2011</td><td>2012</td><td>2011</td></tr><tr><td>CHANGE IN BENEFIT OBLIGATION</td><td></td><td></td><td></td><td></td></tr><tr><td>Benefit obligation at beginning of year<sup>-3</sup></td><td>$12,229</td><td>$11,245</td><td>$4,886</td><td>$4,778</td></tr><tr><td>Service cost</td><td>267</td><td>270</td><td>142</td><td>146</td></tr><tr><td>Interest cost</td><td>611</td><td>588</td><td>276</td><td>270</td></tr><tr><td>Participants' contributions</td><td>22</td><td>21</td><td>68</td><td>67</td></tr><tr><td>Amendments</td><td>-44</td><td>93</td><td>—</td><td>7</td></tr><tr><td>Actuarial loss/(gain)</td><td>1,911</td><td>-633</td><td>957</td><td>-235</td></tr><tr><td>Acquisitions/(divestitures)</td><td>-17</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Special termination benefits</td><td>—</td><td>—</td><td>27</td><td>3</td></tr><tr><td>Currency translation and other</td><td>-847</td><td>1,137</td><td>-95</td><td>89</td></tr><tr><td>Benefit payments</td><td>-559</td><td>-492</td><td>-255</td><td>-239</td></tr><tr><td>BENEFIT OBLIGATION AT END OF YEAR<sup>-3</sup></td><td>13,573</td><td>12,229</td><td>6,006</td><td>4,886</td></tr></table>
<table><tr><td></td><td colspan="2">Pension Benefits<sup>-1</sup></td><td colspan="2">Other Retiree Benefits<sup>-2</sup></td></tr><tr><td></td><td>2012</td><td>2011</td><td>2012</td><td>2011</td></tr><tr><td>CHANGE IN PLAN ASSETS</td><td></td><td></td><td></td><td></td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>$7,962</td><td>$6,562</td><td>$2,975</td><td>$2,843</td></tr><tr><td>Actual return on plan assets</td><td>459</td><td>685</td><td>-126</td><td>253</td></tr><tr><td>Employer contributions</td><td>485</td><td>555</td><td>24</td><td>29</td></tr><tr><td>Participants' contributions</td><td>22</td><td>21</td><td>68</td><td>67</td></tr><tr><td>Currency translation and other</td><td>-395</td><td>631</td><td>—</td><td>2</td></tr><tr><td>ESOP debt impacts<sup>-4</sup></td><td>—</td><td>—</td><td>27</td><td>20</td></tr><tr><td>Benefit payments</td><td>-559</td><td>-492</td><td>-255</td><td>-239</td></tr><tr><td>FAIR VALUE OF PLAN ASSETS AT END OF YEAR</td><td>7,974</td><td>7,962</td><td>2,713</td><td>2,975</td></tr><tr><td>FUNDED STATUS</td><td>-5,599</td><td>-4,267</td><td>-3,293</td><td>-1,911</td></tr></table>
<table><tr><td></td><td>2019</td></tr><tr><td>Expected term in years</td><td>3.1</td></tr><tr><td>Expected volatility</td><td>27.7%</td></tr><tr><td>Risk-free interest rate</td><td>3.0%</td></tr><tr><td>Dividend yield</td><td>4.1%</td></tr></table>

Question: Which year is Service cost for pension benefits the lowest?
Answer: 2012