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 2003 2002 --------- ---------- BASIC NET EARNINGS PER SHARE - ---------------------------- Net earnings $ 1,761 $ 1,464 Preferred dividends, net of tax benefit 33 32 --------- --------- Net earnings available to common shareholders $ 1,728 $ 1,432 ========= ========= Basic weighted average common shares outstanding 1,296.6 1,300.0 ========= ========= Basic net earnings per common share $ 1.33 $ 1.10 ========= ========= DILUTED NET EARNINGS PER SHARE - ------------------------------ Net earnings $ 1,761 $ 1,464 Deduct preferred dividend impact on funding of ESOP 1 2 --------- --------- Diluted net earnings $ 1,760 $ 1,462 ========= ========= Basic weighted average common shares outstanding 1,296.6 1,300.0 Add potential effect of: Conversion of preferred shares 83.4 86.3 Exercise of stock options 18.9 21.0 --------- --------- Diluted weighted average common shares outstanding 1,398.9 1,407.3 ========= ========= Diluted net earnings per common share $ 1.26 $ 1.04 ========= =========