39 The Procter & Gamble Company and Subsidiaries Notes to Consolidated Financial Statements The following table summarizes stock option activity during 2002, 2001  and 2000: received from the sale of the instruments is credited to equity.  The put options entered into during 2002 were equivalent to three million shares at approximately $81 per share. The last of the equity put  option contracts will expire in the second quarter of 2003. The 2001  options were equivalent to one million common shares, at approximate- ly $74 per share and the options entered into in 2000 were equivalent  to 12 million common shares, at prices ranging from $60 to $71 per  share. The 2001 and 2000 options have expired mostly unexercised.  Over the past three years, $96 of premiums received have been credited  to equity. In limited cases, the Company also issues stock appreciation rights,  generally in countries where stock options are not permitted by local  governments. The obligations and associated compensation expense  are adjusted for changes in intrinsic value. The impact of these adjustments is insignificant. The Company maintains The Procter & Gamble Profit Sharing Trust and  Employee Stock Ownership Plan (ESOP) to provide funding for certain  employee benefits. Stock options outstanding at June 30, 2002 were in the following exercise price ranges:  The ESOP borrowed $1,000 in 1989 and the proceeds were used to  purchase Series A ESOP Convertible Class A Preferred Stock to fund a  portion of the defined contribution plan. Principal and interest requirements are $117 per year, paid by the trust from dividends on the  preferred shares and from cash contributions and advances from the  Company. Each share is convertible at the option of the holder into one  share of the Company’s common stock. The liquidation value is $13.64  per share. In 1991, the ESOP borrowed an additional $1,000. The proceeds were  used to purchase Series B ESOP Convertible Class A Preferred Stock to  fund a portion of retiree health care benefits. These shares are considered plan assets of the other retiree benefits plan as discussed in  Note 10. Debt service requirements are $94 per year, funded by preferred stock dividends and cash contributions from the Company.  Each share is convertible at the option of the holder into one share of  the Company’s common stock. The liquidation value is $25.92 per share. As a component of its treasury share repurchase program, the Company  generally repurchases common shares to fund the stock options granted.  Additionally, the Company enters into equity put options on its common  stock in order to reduce the cash outlay for share repurchases. These  agreements typically mature in six months and can be settled on a  physical or net-share basis at the Company’s option. The premium Millions of dollars except per share amounts  $33.81   59.75  73.14  85.76 Exercisable Options Number  Exercisable (Thousands)  Weighted  Average  Exercise Price 25 to 46 54 to 64 65 to 75 76 to 106 21,331 8,182 946 15,873 $ Range of prices Stock options exercisable at June 30, 2002 were in the following exercise price ranges: Number Outstanding (Thousands) Weighted Avg. Remaining Contractual Life 25 to 46 54 to 64 65 to 75 76 to 106 21,331 37,139 24,756 36,937  $33.81 61.35 69.39 89.21 2.6 years  11.2  13.7  9.1 Weighted Avg. Exercise Price  Outstanding Options $ Range of prices Outstanding, beginning of year Granted Jif and Crisco spin-off adjustment  Exercised Canceled Outstanding, end of year Exercisable Available for grant Average price Outstanding, beginning of year Granted Exercised Outstanding, end of year Exercisable, end of year Weighted average fair value of options granted during the year  2002  104,196  25,040 811  (8,149)  (1,735)  120,163  46,332  114,536   82,744  28,400 – (5,709) (1,239)  104,196  48,805  27,994  $61.73 62.20 24.77 63.64 49.14 22.45  $63.64 70.19 29.07 66.68 56.99 21.14  76,810  14,360 –  (7,401)  (1,025)  82,744  54,667  41,387  $52.11 96.10 25.21 61.73 46.67 37.21 June 30 Options in thousands 2001 2000 Note 9 Employee Stock Ownership Plan