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 2005 2004 --------------- --------------- BASIC NET EARNINGS PER SHARE Net earnings $ 2,029 $ 1,942 Preferred dividends, net of tax benefit 36 33 --------------- --------------- Net earnings available to common shareholders $ 1,993 $ 1,909 =============== =============== Basic weighted average common shares outstanding 2,433.0 2,540.7 =============== =============== Basic net earnings per common share $ 0.82 $ 0.75 =============== =============== DILUTED NET EARNINGS PER SHARE Net earnings $ 2,029 $ 1,942 Deduct preferred dividend impact on funding of ESOP - - --------------- --------------- Diluted net earnings $ 2,029 $ 1,942 =============== =============== Basic weighted average common shares outstanding 2,433.0 2,540.7 Add potential effect of: Conversion of preferred shares 155.5 160.1 Exercise of stock options and other Unvested Equity awards 61.2 65.3 --------------- --------------- Diluted weighted average common shares outstanding 2,649.7 2,766.1 =============== =============== Diluted net earnings per common share $ 0.77 $ 0.70 =============== ===============