EARNINGS PER SHARE

9 Months Ended

Mar. 31, 2023

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 March 31				Nine Months Ended March 31
	2023		2022		2023		2022
Net earnings	$	3,424	$	3,367	$	11,346	$	11,735
Less: Net earnings attributable to noncontrolling interests	27		12		77		45
Net earnings attributable to P&G (Diluted)	3,397		3,355		11,269		11,690
Less: Preferred dividends	69		68		210		208
Net earnings attributable to P&G available to common shareholders (Basic)	$	3,328	$	3,287	$	11,059	$	11,482

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,359.1		2,400.5		2,370.2		2,414.0
Add: Effect of dilutive securities
Convertible preferred shares (1)	76.0		78.9		76.7		79.7
Stock options and other unvested equity awards (2)	38.1		50.8		39.1		50.7
Diluted weighted average common shares outstanding	2,473.2		2,530.2		2,486.0		2,544.4

NET EARNINGS PER SHARE (3)
Basic	$	1.41	$	1.37	$	4.67	$	4.76
Diluted	$	1.37	$	1.33	$	4.53	$	4.59

(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 21 million and 5 million for the three months ended March 31, 2023 and 2022, respectively, and 20 million and 11 million for the nine months ended March 31, 2023 and 2022, 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.