EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES --------------------------------------------- Computation of Earnings Per Share --------------------------------- Amounts in Millions Except Per Share Amounts Three Months Ended September 30 2000 1999 ------- -------- BASIC NET EARNINGS PER SHARE - ---------------------------- Net earnings $ 1,155 $ 1,147 Deduct preferred stock dividends 31 30 ------- ------- Net earnings applicable to common stock $ 1,124 $ 1,117 ======= ======= Average number of common shares outstanding 1,305.6 1,316.5 ======= ======= Basic net earnings per share $ 0.86 $ 0.85 ======= ======= DILUTED NET EARNINGS PER SHARE - ------------------------------ Net earnings $ 1,155 $ 1,147 Deduct differential - preferred vs. common dividends 4 5 ------- ------- Net earnings applicable to common stock $ 1,151 $ 1,142 ======= ======= Average number of common shares outstanding 1,305.6 1,316.5 Add potential effect of: Exercise of options 12.5 23.3 Conversion of preferred stock 92.7 95.4 ------- ------- Average number of common shares outstanding, assuming dilution 1,410.8 1,435.2 ======= ======= Diluted earnings per share $ 0.82 $ 0.80 ======= =======