EXHIBIT (11)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
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Computation of Earnings Per Share
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Amounts in millions except per share amounts
Years Ended June 30
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1999 2000 2001 2002 2003
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BASIC NET EARNINGS PER SHARE
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Net earnings $ 3,763 $ 3,542 $ 2,922 $ 4,352 $ 5,186
Preferred dividends, net of tax benefit 109 115 121 124 125
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Net earnings available to common shareholders $ 3,654 $ 3,427 $ 2,801 $ 4,228 $ 5,061
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Basic weighted average common
shares outstanding 1,328.1 1,313.2 1,300.3 1,297.4 1,296.6
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Basic net earnings per common share $ 2.75 $ 2.61 $ 2.15 $ 3.26 $ 3.90
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DILUTED NET EARNINGS PER SHARE
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Net earnings $ 3,763 $ 3,542 $ 2,922 $ 4,352 $ 5,186
Deduct preferred dividend impact on
funding of ESOP 22 18 15 12 9
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Diluted net earnings $ 3,741 $ 3,524 $ 2,907 $ 4,340 $ 5,177
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Basic weighted average common
shares outstanding 1,328.1 1,313.2 1,300.3 1,297.4 1,296.6
Add potential effect of:
Conversion of preferred shares (1) 97.2 94.3 91.9 88.8 85.1
Exercise of stock options (2) 21.5 19.7 13.4 18.7 19.6
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Diluted weighted average common
shares outstanding 1,446.8 1,427.2 1,405.6 1,404.9 1,401.3
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Diluted net earnings per common share $ 2.59 $ 2.47 $ 2.07 $ 3.09 $ 3.69
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(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 through 2021.
(2) Approximately 33 million in 2003, 36 million in 2002 and 38 million in
2001 of the Company's stock options were not included in the diluted
net earnings per share calculation because to do so would have been
antidilutive (i.e., the exercise price exceeded market value.)