EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ================================================ COMPUTATION OF EARNINGS PER SHARE -------------------------------------------------------------- Amounts in Millions, Except Per Share Amounts Three Months Ended Six Months Ended December 31 December 31 ------------------ ------------------ BASIC EARNINGS PER SHARE 1997 1996 1997 1996 - ------------------------ -------- -------- -------- ------- Net earnings $1,046 $ 944 $2,133 $1,923 Deduct preferred stock dividends 26 26 52 52 -------- -------- -------- -------- Net earnings applicable to common stock $1,020 $ 918 $2,081 $1,871 - --------------------------------------- ======== ======== ======== ======== Average number of common shares outstanding 1,346.0 1,364.4 1,346.0 1,364.4 Per Share - --------- Basic earnings per share $ .76 $ .67 $ 1.55 $ 1.37 ======== ======= ======== ======== DILUTIVE EARNINGS PER SHARE - --------------------------- Net earnings $1,046 $ 944 $2,133 $1,923 Deduct differential -- preferred vs. common dividends 6 8 13 16 -------- -------- -------- -------- Net earnings applicable to common stock $1,040 $ 936 $2,120 $1,907 - --------------------------------------- ======== ======== ======== ======== Average number of common shares outstanding 1,346.0 1,364.4 1,346.0 1,364.4 Add potential effect of: Exercise of options 24.0 21.8 24.0 21.8 Conversion of preferred stock 100.3 102.4 100.3 102.4 -------- -------- -------- -------- Average number of common shares outstanding, assuming dilution 1,470.3 1,488.6 1,470.3 1,488.6 ======== ======== ======== ======== Dilutive earnings per share $ .71 $ .63 $ 1.44 $ 1.28 ======== ======== ======== ========