EARNINGS PER SHARE

6 Months Ended

Dec. 31, 2022

Earnings Per Share

Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble by the diluted weighted average number of common shares outstanding during the period. The diluted shares include the dilutive effect of stock options and other stock-based awards based on the treasury stock method and the assumed conversion of preferred stock.

Net earnings per share were calculated as follows:


CONSOLIDATED AMOUNTS	Three Months Ended December 31				Six Months Ended December 31
	2022		2021		2022		2021
Net earnings	$	3,959	$	4,242	$	7,922	$	8,368
Less: Net earnings attributable to noncontrolling interests	26		19		50		33
Net earnings attributable to P&G (Diluted)	3,933		4,223		7,872		8,335
Less: Preferred dividends	70		70		141		140
Net earnings attributable to P&G available to common shareholders (Basic)	$	3,863	$	4,153	$	7,731	$	8,195

SHARES IN MILLIONS
Basic weighted average common shares outstanding	2,365.9		2,413.4		2,375.7		2,420.7
Add: Effect of dilutive securities
Convertible preferred shares (1)	76.7		79.6		77.0		80.1
Stock options and other unvested equity awards (2)	38.6		51.2		39.7		50.8
Diluted weighted average common shares outstanding	2,481.2		2,544.2		2,492.4		2,551.6

NET EARNINGS PER SHARE (3)
Basic	$	1.63	$	1.72	$	3.25	$	3.39
Diluted	$	1.59	$	1.66	$	3.16	$	3.27

(1)An overview of preferred shares can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

(2)Excludes 22 million and 14 million for the three months ended December 31, 2022 and 2021, respectively, and 19 million and 13 million for the six months ended December 31, 2022 and 2021, respectively, of weighted average stock options outstanding because the exercise price of these options was greater than their average market value or their effect was antidilutive.

(3)Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.