EX-11 5 l09389aexv11.txt EXHIBIT 11 EXHIBIT (11) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES --------------------------------------------- Computation of Earnings Per Share --------------------------------- Amounts in millions except per share amounts (Table restated for two-for-one stock split effective May 21, 2004)
Years Ended June 30 ------------------- 2000 2001 2002 2003 2004 ---------- ---------- ---------- ---------- ---------- BASIC NET EARNINGS PER SHARE ---------------------------- Net earnings $ 3,542 $ 2,922 $ 4,352 $ 5,186 $ 6,481 Preferred dividends, net of tax benefit 115 121 124 125 131 ---------- ---------- ---------- ---------- ---------- Net earnings available to common shareholders $ 3,427 $ 2,801 $ 4,228 $ 5,061 $ 6,350 ========== ========== ========== ========== ========== Basic weighted average common shares outstanding 2,626.4 2,600.7 2,594.8 2,593.2 2,580.1 ========== ========== ========== ========== ========== Basic net earnings per common share $ 1.30 $ 1.08 $ 1.63 $ 1.95 $ 2.46 ========== ========== ========== ========== ========== DILUTED NET EARNINGS PER SHARE ------------------------------ 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 ---------- ---------- ---------- ---------- ---------- Diluted net earnings $ 3,524 $ 2,907 $ 4,340 $ 5,177 $ 6,477 ========== ========== ========== ========== ========== 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 ---------- ---------- ---------- ---------- ---------- Diluted weighted average common shares outstanding 2,854.4 2,811.1 2,809.9 2,802.6 2,790.1 ========== ========== ========== ========== ========== Diluted net earnings per common share $ 1.23 $ 1.03 $ 1.54 $ 1.85 $ 2.32 ========== ========== ========== ========== ==========
(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).