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
(Table restated for two-for-one stock split effective May 21, 2004)
Years Ended June 30
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2000 2001 2002 2003 2004
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BASIC NET EARNINGS PER SHARE
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Net earnings $ 3,542 $ 2,922 $ 4,352 $ 5,186 $ 6,481
Preferred dividends, net of tax benefit 115 121 124 125 131
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Net earnings available to common shareholders $ 3,427 $ 2,801 $ 4,228 $ 5,061 $ 6,350
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Basic weighted average common
shares outstanding 2,626.4 2,600.7 2,594.8 2,593.2 2,580.1
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Basic net earnings per common share $ 1.30 $ 1.08 $ 1.63 $ 1.95 $ 2.46
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DILUTED NET EARNINGS PER SHARE
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Net earnings $ 3,542 $ 2,922 $ 4,352 $ 5,186 $ 6,481
Deduct preferred dividend impact on
funding of ESOP 18 15 12 9 4
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Diluted net earnings $ 3,524 $ 2,907 $ 4,340 $ 5,177 $ 6,477
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Basic weighted average common
shares outstanding 2,626.4 2,600.7 2,594.8 2,593.2 2,580.1
Add potential effect of:
Conversion of preferred shares (1) 188.6 183.8 177.6 170.2 164.0
Exercise of stock options (2) 39.4 26.6 37.5 39.2 46.0
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Diluted weighted average common
shares outstanding 2,854.4 2,811.1 2,809.9 2,802.6 2,790.1
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Diluted net earnings per common share $ 1.23 $ 1.03 $ 1.54 $ 1.85 $ 2.32
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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 debt through 2021.
(2) Approximately 38 million in 2004, 66 million in 2003 and 72 million in
2002 of the Company's outstanding 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).