EARNINGS PER SHARE

12 Months Ended

Jun. 30, 2022

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 year. 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 outstanding during the year. The diluted shares include the dilutive effect of stock options and other stock-based awards based on the treasury stock method (see Note 7) and the assumed conversion of preferred stock (see Note 8).

Net earnings per share were calculated as follows:


Years ended June 30	2022		2021		2020
CONSOLIDATED AMOUNTS
Net earnings	$	14,793	$	14,352	$	13,103
Less: Net earnings attributable to noncontrolling interests	51		46		76
Net earnings attributable to P&G	14,742		14,306		13,027
Less: Preferred dividends	281		271		263
Net earnings attributable to P&G available to common shareholders (Basic)	$	14,461	$	14,035	$	12,764

Net earnings attributable to P&G available to common shareholders (Diluted)	$	14,742	$	14,306	$	13,027

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,410.3		2,465.8		2,487.1
Add effect of dilutive securities:
Stock options and other unvested equity awards (1)	49.5		52.5		52.7
Convertible preferred shares (2)	79.3		82.7		86.0
Diluted weighted average common shares outstanding	2,539.1		2,601.0		2,625.8

NET EARNINGS PER SHARE (3)
Basic	$	6.00	$	5.69	$	5.13
Diluted	$	5.81	$	5.50	$	4.96

(1)Excludes 11 million, 9 million and 6 million in 2022, 2021 and 2020, respectively, of weighted average stock options outstanding because the exercise price of these options was greater than the average market value of the Company's stock or their effect was antidilutive.

(2)An overview of preferred shares can be found in Note 8.

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