EX-11 5 l96166aexv11.txt EX. 11 COMPUTATION OF EARNINGS PER SHARE EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Computation of Earnings Per Share Amounts in millions except per share amounts
Years Ended June 30 --------------------------------------------------------------------- 1998 1999 2000 2001 2002 --------- --------- --------- --------- --------- BASIC NET EARNINGS PER SHARE Net earnings $ 3,780 $ 3,763 $ 3,542 $ 2,922 $ 4,352 Preferred dividends, net of tax benefit 104 109 115 121 124 --------- --------- --------- --------- --------- Net earnings available to common shareholders $ 3,676 $ 3,654 $ 3,427 $ 2,801 $ 4,228 ========= ========= ========= ========= ========= Basic weighted average common shares outstanding 1,343.4 1,328.1 1,313.2 1,300.3 1,297.4 ========= ========= ========= ========= ========= Basic net earnings per common share $ 2.74 $ 2.75 $ 2.61 $ 2.15 $ 3.26 ========= ========= ========= ========= ========= DILUTED NET EARNINGS PER SHARE Net earnings $ 3,780 $ 3,763 $ 3,542 $ 2,922 $ 4,352 Deduct preferred dividend impact on funding of ESOP 25 22 18 15 12 --------- --------- --------- --------- --------- Diluted net earnings $ 3,755 $ 3,741 $ 3,524 $ 2,907 $ 4,340 ========= ========= ========= ========= ========= Basic weighted average common shares outstanding 1,343.4 1,328.1 1,313.2 1,300.3 1,297.4 Add potential effect of: Conversion of preferred shares (1) 99.8 97.2 94.3 91.9 88.8 Exercise of stock options (2) 22.3 21.5 19.7 13.4 18.7 --------- --------- --------- --------- --------- Diluted weighted average common shares outstanding 1,465.5 1,446.8 1,427.2 1,405.6 1,404.9 ========= ========= ========= ========= ========= Diluted net earnings per common share $ 2.56 $ 2.59 $ 2.47 $ 2.07 $ 3.09 ========= ========= ========= ========= =========
(1) Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs pursuant to the repayment of the ESOP debt over a period exceeding 20 years. (2) Approximately 36 million in 2002, 38 million in 2001 and 17 million in 2000 of the Company's outstanding stock options were not included in the diluted net earnings per common share calculation because to do so would have been antidilutive (i.e., the exercise price exceeded market value.)