EXHIBIT (11)

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Computation of Earnings Per Share

Amounts in millions except per share amounts

	Years Ended June 30
	2006		2005		2004		2003		2002
BASIC NET EARNINGS PER SHARE
Net earnings	$	8,684	$	6,923	$	6,156	$	4,788	$	3,910
Preferred dividends, net of tax benefit		148		136		131		125		124
Net earnings available to common shareholders	$	8,536	$	6,787	$	6,025	$	4,663	$	3,786
Basic weighted average common shares outstanding		3,054.9		2,515.6		2,580.1		2,593.2		2,594.8
Basic net earnings per common share	$	2.79	$	2.70	$	2.34	$	1.80	$	1.46
DILUTED NET EARNINGS PER SHARE
Net earnings	$	8,684	$	6,923	$	6,156	$	4,788	$	3,910
Deduct preferred dividend impact on funding of ESOP		0		1		4		9		12
Diluted net earnings	$	8,684	$	6,922	$	6,152	$	4,779	$	3,898
Basic weighted average common shares outstanding		3,054.9		2,515.6		2,580.1		2,593.2		2,594.8
Add potential effect of:
Conversion of preferred shares		154.1		158.3		164.0		170.2		177.6
Exercise of stock options and other unvested equity awards		76.9		63.2		55.3		40.3		38.5
Diluted weighted average common shares outstanding		3,285.9		2,737.1		2,799.4		2,803.7		2,810.9
Diluted net earnings per common share	$	2.64	$	2.53	$	2.20	$	1.70	$	1.39

(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 44 million in 2006, 48 million in 2005 and 43 million in 2004 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).