EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2021

Earnings Per Share

Basic 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 by dividing Net earnings attributable to Procter & Gamble by the diluted weighted average number of common shares during the period. The diluted shares include the dilutive effect of stock options and other stock-based awards based on the treasury stock method and the assumed conversion of preferred stock.

Net earnings per share were calculated as follows:


CONSOLIDATED AMOUNTS	Three Months Ended December 31				Six Months Ended December 31
	2021		2020		2021		2020
Net earnings	$	4,242	$	3,887	$	8,368	$	8,195
Less: Net earnings attributable to noncontrolling interests	19		33		33		64
Net earnings attributable to P&G (Diluted)	4,223		3,854		8,335		8,131
Less: Preferred dividends	70		66		140		132
Net earnings attributable to P&G available to common shareholders (Basic)	$	4,153	$	3,788	$	8,195	$	7,999

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,413.4		2,475.8		2,420.7		2,481.0
Add: Effect of dilutive securities
Convertible preferred shares (1)	79.6		83.1		80.1		83.5
Stock options and other unvested equity awards (2)	51.2		56.5		50.8		55.9
Diluted weighted average common shares outstanding	2,544.2		2,615.4		2,551.6		2,620.4

NET EARNINGS PER SHARE (3)
Basic	$	1.72	$	1.53	$	3.39	$	3.22
Diluted	$	1.66	$	1.47	$	3.27	$	3.10

(1)An overview of preferred shares can be found in our Annual Report on Form 10-K for the year ended June 30, 2021.

(2)Excludes 14 million and 8 million for the three months ended December 31, 2021 and 2020, respectively, and 13 million and 6 million for the six months ended December 31, 2021 and 2020, respectively, of weighted average stock options outstanding because the exercise price of these options was greater than their average market value or their effect was antidilutive.

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