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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2005 2004 2003 2002 2001
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BASIC NET EARNINGS PER SHARE
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Net earnings $ 7,257 $ 6,481 $ 5,186 $ 4,352 $ 2,922
Preferred dividends, net of tax benefit 136 131 125 124 121
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Net earnings available to common shareholders $ 7,121 $ 6,350 $ 5,061 $ 4,228 $ 2,801
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Basic weighted average common shares
outstanding 2,515.6 2,580.1 2,593.2 2,594.8 2,600.7
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Basic net earnings per common share $ 2.83 $ 2.46 $ 1.95 $ 1.63 $ 1.08
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DILUTED NET EARNINGS PER SHARE
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Net earnings $ 7,257 $ 6,481 $ 5,186 $ 4,352 $ 2,922
Deduct preferred dividend impact on funding
of ESOP 1 4 9 12 15
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Diluted net earnings $ 7,256 $ 6,477 $ 5,177 $ 4,340 $ 2,907
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Basic weighted average common shares
outstanding 2,515.6 2,580.1 2,593.2 2,594.8 2,600.7
Add potential effect of:
Conversion of preferred shares 158.3 164.0 170.2 177.6 183.8
Exercise of stock options and other
unvested equity awards 52.3 46.0 39.2 37.5 26.6
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Diluted weighted average common shares
outstanding 2,726.2 2,790.1 2,802.6 2,809.9 2,811.1
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Diluted net earnings per common share $ 2.66 $ 2.32 $ 1.85 $ 1.54 $ 1.03
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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 1 million in 2005, 38 million in 2004 and 66 million in 2003
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).