Proctor and Gamble 2015 Annual Report Download - page 62

The Procter & Gamble Company 60
Amounts in millions of dollars except per share amounts or as otherwise specified.
 
EARNINGS PER SHARE
Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) are divided by the weighted
average number of common shares outstanding during the year to calculate basic net earnings per common share. Diluted net
earnings per common share are calculated to give effect to stock options and other stock-based awards (see Note 8) and assume
conversion of preferred stock (see Note 9).
Net earnings attributable to Procter & Gamble and common shares used to calculate basic and diluted net earnings per share were
as follows:
Years ended une 0 2015 2014 201
CONSOLIDATED AMOUNTS Continuing
Oerations
Dis-
continued
Oerations Total Continuing
Oerations
Dis-
continued
Oerations Total Continuing
Oerations
Dis-
continued
Oerations Total
Net earningsloss  ,90  1,  ,144 $11,318 $ 467 $ 11,785 $ 10,953 $ 449 $11,402
Net earnings attributable to
noncontrolling interests (100) (8) (108)(121)(21)(142)(93)3
(90)
Net earningsloss attriutale
to P&G Diluted ,0 1,94 ,0 11,197 446 11,643 10,860 452 11,312
Preferred dividends, net of tax 259  259(253)
(253)(244) (244)
Net earningsloss attriutale
to P&G aailale to common
shareholders Basic  ,51  1,94  , $ 10,944 $ 446 $ 11,390 $ 10,616 $ 452 $ 11,068
SHARES IN MILLIONS
asic weighted average common
shares outstanding 2,11. 2,11. 2,11. 2,719.8 2,719.8 2,719.8 2,742.9 2,742.9 2,742.9
Effect of dilutive securities
Conversion of preferred shares(1) 10. 10. 10. 112.3 112.3 112.3 116.8 116.8 116.8
Exercise of stock options and
other unvested equity awards (2) . . . 72.6 72.6 72.6 70.9 70.9 70.9
Diluted weighted aerage
common shares outstanding 2,. 2,. 2,. 2,904.7 2,904.7 2,904.7 2,930.6 2,930.6 2,930.6
PER SHARE AMOUNTS
Basic net earningsloss er
common share   .1  0.  2.50 $ 4.03 $ 0.16 $ 4.19 $ 3.87 $ 0.17 $ 4.04
Diluted net earningsloss er
common share   .0  0.2  2.44 $ 3.86 $ 0.15 $ 4.01 $ 3.71 $ 0.15 $ 3.86
(1) Despite being included currently in Diluted net earnings per common share, the actual conversion to common stock occurs when the
preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's
obligations through 2035.
(2) Approximately 8 million in 2015, 9 million in 2014 and 12 million in 2013 of the Company's outstanding stock options were not included
in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e.,
the total proceeds upon exercise would have exceeded the market value of the underlying common shares).
(3) asic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter &
Gamble.
 
STOCK-BASED COMPENSATION
e have stock-based compensation plans under which we
annually grant stock option, restricted stock, restricted stock
unit (RSU) and performance stock unit (PSU) awards to key
managers and directors. Exercise prices on options granted
have been, and continue to be, set equal to the market price of
the underlying shares on the date of the grant. Since September
2002, the key manager stock option awards granted vest after
three years and have a 10-year life. The key manager stock
option awards granted from July 1998 through August 2002
vested after three years and have a 15-year life. Key managers
can elect to receive up to the entire value of their option award
in RSUs. Key manager RSUs vest and are settled in shares of
common stock five years from the grant date. The awards
provided to the Company's directors are in the form of
restricted stock and RSUs. In addition to our key manager and
director grants, we make other minor stock option and RSU