EARNINGS PER SHARE

12 Months Ended

Jun. 30, 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 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 share-based awards based on the treasury stock method (see Note 7) and the assumed conversion of preferred stock (see Note 8).

Net earnings per common share were calculated as follows:


Fiscal years ended June 30	2023		2022		2021
CONSOLIDATED AMOUNTS
Net earnings	$	14,738	$	14,793	$	14,352
Less: Net earnings attributable to noncontrolling interests	85		51		46
Net earnings attributable to P&G	14,653		14,742		14,306
Less: Preferred dividends	282		281		271
Net earnings attributable to P&G available to common shareholders (Basic)	$	14,371	$	14,461	$	14,035

Net earnings attributable to P&G available to common shareholders (Diluted)	$	14,653	$	14,742	$	14,306

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,368.2		2,410.3		2,465.8
Add effect of dilutive securities:
Stock options and other unvested equity awards (1)	39.4		49.5		52.5
Convertible preferred shares (2)	76.3		79.3		82.7
Diluted weighted average common shares outstanding	2,483.9		2,539.1		2,601.0

NET EARNINGS PER COMMON SHARE (3)
Basic	$	6.07	$	6.00	$	5.69
Diluted	$	5.90	$	5.81	$	5.50

(1)Excludes 19 million, 11 million and 9 million in 2023, 2022 and 2021, 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)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.