EARNINGS PER SHARE

3 Months Ended

Sep. 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 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 outstanding 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 September 30
	2022		2021
Net earnings	$	3,963	$	4,126
Less: Net earnings attributable to noncontrolling interests	24		14
Net earnings attributable to P&G (Diluted)	3,939		4,112
Less: Preferred dividends	71		70
Net earnings attributable to P&G available to common shareholders (Basic)	$	3,868	$	4,042

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,385.5		2,428.1
Add: Effect of dilutive securities
Convertible preferred shares (1)	77.4		80.5
Stock options and other unvested equity awards (2)	40.7		50.3
Diluted weighted average common shares outstanding	2,503.6		2,558.9

NET EARNINGS PER SHARE (3)
Basic	$	1.62	$	1.66
Diluted	$	1.57	$	1.61

(1)An overview of preferred shares can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

(2)Excludes 18 million and 9 million for the three months ended September 30, 2022 and 2021, 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.