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 2001 2000 ----------- ----------- BASIC NET EARNINGS PER SHARE Net earnings $ 1,104 $ 1,155 Deduct preferred stock dividends 32 31 ----------- ----------- Net earnings applicable to common stock $ 1,072 $ 1,124 =========== =========== Average number of common shares outstanding 1,296.1 1,305.6 =========== =========== Basic net earnings per share $ 0.83 $ 0.86 =========== =========== DILUTED NET EARNINGS PER SHARE Net earnings $ 1,104 $ 1,155 Deduct differential - preferred vs. common dividends 3 4 ----------- ----------- Net earnings applicable to common stock $ 1,101 $ 1,151 =========== =========== Average number of common shares outstanding 1,296.1 1,305.6 Add potential effect of: Exercise of options 14.3 12.5 Conversion of preferred stock 90.4 92.7 ----------- ----------- Average number of common shares outstanding, assuming dilution 1,400.8 1,410.8 =========== =========== Diluted net earnings per share $ 0.79 $ 0.82 =========== ===========