1) Based on what you see in the financial statements, how likely do you think it is that

Procter & Gamble capitalized interest in FY 2020? Why?

Consolidated Statements of Earnings Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Goodwill and indefinite-lived intangibles impairment charges OPERATING INCOME Interest expense Interest income Other non-operating income, net EARNINGS BEFORE INCOME TAXES Income taxes NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE") 2020 2019 2018 $ 70,950 $ 67,684 $ 66,832 35,250 34,768 34,432 19,994 19,084 19,037 8,345 15,706 5,487 13,363 (465) (509) (506) 155 220 247 438 871 222 15,834 6,069 13,326 2,731 2,103 3,465 13,103 3,966 9,861 76 69 111 $ 13,027 $ 3,897 $ 9,750 NET EARNINGS PER COMMON SHARE: (2) Basic $ 5.13 $ 1.45 $ 3.75 Diluted $ 4.96 $ 1.43 $ 3.67 (1) Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care goodwill and Gillette indefinite-lived intangible assets. Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. (2) $ 16,181 $ 4,239 6,048 4,951 4,178 1,289 URRENTASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventories Prepaid expenses and other current assets TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS 1,414 674 612 3,410 3,116 5,498 5,017 2,130 2,218 27,987 22,473 20,692 21,271 39,901 40,273 23,792 24,215 8,328 6,863 $ 120,700 $ 115,095 $ Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY 12,071 $ 11,260 9,722 9,054 11,183 9,697 32,976 30,011 23,537 20,395 6,199 6,899 11,110 10,211 73,822 67,516 2019 As of June 30 2020 PROPERTY, PLANT AND EQUIPMENT Buildings $ 7,700 $ 7,746 Machinery and equipment 33,260 32,263 Land 777 805 Construction in progress 2,034 2,579 TOTAL PROPERTY, PLANT AND EQUIPMENT 43,771 43,393 Accumulated depreciation (23,079) (22,122) PROPERTY, PLANT AND EQUIPMENT, NET $ 20,692 $ 21,271 Selected components of current and noncurrent liabilities were as follows: Consolidated Statements of Earnings Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Goodwill and indefinite-lived intangibles impairment charges OPERATING INCOME Interest expense Interest income Other non-operating income, net EARNINGS BEFORE INCOME TAXES Income taxes NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE") 2020 2019 2018 $ 70,950 $ 67,684 $ 66,832 35,250 34,768 34,432 19,994 19,084 19,037 8,345 15,706 5,487 13,363 (465) (509) (506) 155 220 247 438 871 222 15,834 6,069 13,326 2,731 2,103 3,465 13,103 3,966 9,861 76 69 111 $ 13,027 $ 3,897 $ 9,750 NET EARNINGS PER COMMON SHARE: (2) Basic $ 5.13 $ 1.45 $ 3.75 Diluted $ 4.96 $ 1.43 $ 3.67 (1) Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care goodwill and Gillette indefinite-lived intangible assets. Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. (2) $ 16,181 $ 4,239 6,048 4,951 4,178 1,289 URRENTASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventories Prepaid expenses and other current assets TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS 1,414 674 612 3,410 3,116 5,498 5,017 2,130 2,218 27,987 22,473 20,692 21,271 39,901 40,273 23,792 24,215 8,328 6,863 $ 120,700 $ 115,095 $ Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY 12,071 $ 11,260 9,722 9,054 11,183 9,697 32,976 30,011 23,537 20,395 6,199 6,899 11,110 10,211 73,822 67,516 2019 As of June 30 2020 PROPERTY, PLANT AND EQUIPMENT Buildings $ 7,700 $ 7,746 Machinery and equipment 33,260 32,263 Land 777 805 Construction in progress 2,034 2,579 TOTAL PROPERTY, PLANT AND EQUIPMENT 43,771 43,393 Accumulated depreciation (23,079) (22,122) PROPERTY, PLANT AND EQUIPMENT, NET $ 20,692 $ 21,271 Selected components of current and noncurrent liabilities were as follows