EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2019

Earnings Per ShareBasic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share are calculated using the treasury stock method, on the basis of the weighted average number of common shares outstanding plus the dilutive effect of stock options and other stock-based awards and the assumed conversion of preferred stock.

Net earnings per share were as follows:


CONSOLIDATED AMOUNTS	Three Months Ended December 31						Six Months Ended December 31
	2019		2018		2019		2018
Net earnings	$	3,743	$	3,216	$	7,360	$	6,427
Less: Net earnings attributable to noncontrolling interests	26		22		50		34
Net earnings attributable to P&G (Diluted)	3,717		3,194		7,310		6,393
Preferred dividends	(64)		(65)		(129)		(131)
Net earnings attributable to P&G available to common shareholders (Basic)	$	3,653	$	3,129	$	7,181	$	6,262

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,487.0		2,499.7		2,495.5		2,497.8
Add: Effect of dilutive securities
Conversion of preferred shares ⁽¹⁾	86.4		90.7		86.9		91.3
Impact of stock options and other unvested equity awards ⁽²⁾	56.7		32.6		56.4		28.5
Diluted weighted average common shares outstanding	2,630.1		2,623.0		2,638.8		2,617.6

NET EARNINGS PER SHARE ⁽³⁾
Basic	$	1.47	$	1.25	$	2.88	$	2.51
Diluted	$	1.41	$	1.22	$	2.77	$	2.44

⁽¹⁾Despite being included currently in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.

⁽²⁾Weighted average outstanding stock options of approximately 23 million for the three months ended December 31, 2018, and approximately 2 million and 35 million for the six months ended December 31, 2019 and 2018 respectively, were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares). There were no antidilutive shares for the three months ended December 31, 2019.

⁽³⁾Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.