EXHIBIT (11)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Computation of Earnings Per Share
Amounts in millions except per share amounts
Years Ended June 30
---------------------------------------------------------------------
1998 1999 2000 2001 2002
--------- --------- --------- --------- ---------
BASIC NET EARNINGS PER SHARE
Net earnings $ 3,780 $ 3,763 $ 3,542 $ 2,922 $ 4,352
Preferred dividends, net of tax benefit 104 109 115 121 124
--------- --------- --------- --------- ---------
Net earnings available to common shareholders $ 3,676 $ 3,654 $ 3,427 $ 2,801 $ 4,228
========= ========= ========= ========= =========
Basic weighted average common
shares outstanding 1,343.4 1,328.1 1,313.2 1,300.3 1,297.4
========= ========= ========= ========= =========
Basic net earnings per common share $ 2.74 $ 2.75 $ 2.61 $ 2.15 $ 3.26
========= ========= ========= ========= =========
DILUTED NET EARNINGS PER SHARE
Net earnings $ 3,780 $ 3,763 $ 3,542 $ 2,922 $ 4,352
Deduct preferred dividend impact on
funding of ESOP 25 22 18 15 12
--------- --------- --------- --------- ---------
Diluted net earnings $ 3,755 $ 3,741 $ 3,524 $ 2,907 $ 4,340
========= ========= ========= ========= =========
Basic weighted average common
shares outstanding 1,343.4 1,328.1 1,313.2 1,300.3 1,297.4
Add potential effect of:
Conversion of preferred shares (1) 99.8 97.2 94.3 91.9 88.8
Exercise of stock options (2) 22.3 21.5 19.7 13.4 18.7
--------- --------- --------- --------- ---------
Diluted weighted average common
shares outstanding 1,465.5 1,446.8 1,427.2 1,405.6 1,404.9
========= ========= ========= ========= =========
Diluted net earnings per common share $ 2.56 $ 2.59 $ 2.47 $ 2.07 $ 3.09
========= ========= ========= ========= =========
(1) Despite being included currently in diluted net earnings per common share,
the actual conversion to common stock occurs pursuant to the repayment of
the ESOP debt over a period exceeding 20 years.
(2) Approximately 36 million in 2002, 38 million in 2001 and 17 million in 2000
of the Company's outstanding stock options were not included in the diluted
net earnings per common share calculation because to do so would have been
antidilutive (i.e., the exercise price exceeded market value.)