The Procter & Gamble Company (PG) 10-Q 2014 Q3 Quarterly report

EXHIBIT 11

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Computation of Earnings Per Share

	Three Months Ended March 31						Nine Months Ended March 31
Amounts in millions except per share amounts	2014			2013			2014			2013
BASIC NET EARNINGS PER SHARE
Net earnings	$	2,636		$	2,591		$	9,165		$	9,520
Net earnings attributable to noncontrolling interests	$	(27	)	$	(25	)	$	(101	)	$	(83	)
Net earnings attributable to Procter & Gamble	$	2,609		$	2,566		$	9,064		$	9,437
Preferred dividends, net of tax benefit	$	(57	)	$	(54	)	$	(182	)	$	(176	)
Net earnings attributable to Procter & Gamble available to common shareholders	$	2,552		$	2,512		$	8,882		$	9,261
Basic weighted average common shares outstanding	2,713.1			2,741.5			2,722.5			2,741.8
Basic net earnings per common share	$	0.94		$	0.92		$	3.26		$	3.38
DILUTED NET EARNINGS PER SHARE
Net earnings attributable to Procter & Gamble	$	2,609		$	2,566		$	9,064		$	9,437
Basic weighted average common shares outstanding	2,713.1			2,741.5			2,722.5			2,741.8
Add potential effect of:
Conversion of preferred shares (1)	111.9			115.6			112.7			117.7
Exercise of stock options and other unvested equity awards (2)	69.1			73.6			73.7			68.1
Diluted weighted average common shares outstanding	2,894.1			2,930.7			2,908.9			2,927.6
Diluted net earnings per common share	$	0.90		$	0.88		$	3.12		$	3.22

⁽¹⁾ Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.

⁽²⁾ For the three months ended March 31, 2014 and March 31, 2013 approximately 15 million and 11 million of the Company's outstanding stock options and for the nine months ended March 31, 2014 and March 31, 2013 approximately 4 million and 34 million of the Company's outstanding stock options were not included in the diluted net earnings per share calculations because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares).