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 2002 2001 --------------- -------------- BASIC NET EARNINGS PER SHARE - ---------------------------- Net earnings $ 1,464 $ 1,104 Preferred dividends, net of tax benefit 32 32 -------------- -------------- Net earnings available to common shareholders $ 1,432 $ 1,072 ============== ============== Basic weighted average common shares outstanding 1,300.0 1,296.1 ============== ============== Basic net earnings per common share $ 1.10 $ 0.83 ============== ============== DILUTED NET EARNINGS PER SHARE - ------------------------------ Net earnings $ 1,464 $ 1,104 Deduct preferred dividend impact on funding of ESOP 2 3 -------------- -------------- Diluted net earnings $ 1,462 $ 1,101 ============== ============== Basic weighted average common shares outstanding 1,300.0 1,296.1 Add potential effect of: Conversion of preferred shares 86.3 90.4 Exercise of stock options 21.0 14.3 -------------- -------------- Diluted weighted average common shares outstanding 1,407.3 1,400.8 ============== ============== Diluted net earnings per common share $ 1.04 $ 0.79 ============== ==============