Consolidated Statements of Earnings 2017 2016 2015 $ 65,058 $ 65,299 $ 70,749 32,535 32,909 37,056 Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Venezuela deconsolidation charge OPERATING INCOME 18,568 18,949 20,616 2,028 13.955 11,049 13,441 579 Interest expense 465 626 Interest income 171 182 149 325 440 (404) 13,257 13,369 11,012 3,342 2.725 3,063 10,194 10,027 8.287 5,217 577 (1,143) 15,411 '' l | |l | | | g 10,604 7,144 85 96 108 Other non-operating income/expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS/LOSS) FROM DISCONTINUED OPERATIONS NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations Earnings/(loss) from discontinued operations BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations Earnings/loss) from discontinued operations DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 15,326 $ 10,508 $ 7,036 $ 3.59 2.01 0.21 (0.42) $ 5.80 $ 3.80 $ 2.50 $ 3.49 $ 2.84 $ 3.69 1.90 0.20 (0.40) $ 2.44 $ 5.59 $ 3.69 $ 2.70 $ 2.66 $ 2.59 e calculated on Net earnings attributable to Procter & Gamble. Consolidated Statements of Comprehensive Income 2017 2016 2015 $ 15,411 $ 10,604 $ 7,144 239 Amounts in millions; Years ended June 30 NET EARNINGS OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation Unrealized gains/(losses) on hedges (net of $(186), $5 and $739 tax, respectively) Unrealized gains/(losses) on investment securities (net of $(6), $7 and $0 tax, respectively) Unrealized gains/(losses) on defined benefit retirement plans (net of $551, $(621) and $328 tax, respectively) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX TOTAL COMPREHENSIVE INCOME Less: Total comprehensive income attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE (306) (59) 1,401 (1,679) (7,220) 1 1,234 28 24 (1,477) 844 (3,127) (5,118) 7,477 2,026 96 108 1,275 16,686 85 $ 16,601 $ 7,381 $ 1,918 18.038 8.126 18,945 9.113 8 254 64.628 10,325 69,153 1.006 1,038 4.009 LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A proferred stock stated value $1 per share 600 shares authorized Non-Voting Class B preferred stock stated value 51 per share (200 shares authorized) Common stock stated value $1 per shara (10,000 shares authorized shares issued 2017 - 4,009 2 2016 - 40092) Additional pold-in capital Reserva for ESOP debt retirement Accumulated other comprehensive income foss) Treasury stock, at cost shares hold 2017. 14659 2016- 13412) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,009 63,641 63,714 (1,249) (1290) (14,632) (15.907) ) (93,715) (82.176) 96.124 87,953 594 642 55.770 57,983 $ 120,406 $ 127,136 See accompanying Notes to Consolidated Financial Statements Consolidated Statements of Shareholders' Equity Accumulated Total Non- Common Shares Common Preferred Dollars in millions; Shares in thousands Treasury Retained controlling Share- holders Stock Additional Reserve for Other Paldin ESOP Debt Comprahensive Capital Retirement Income L0331 Stock Stock Earnings Outstanding Interest Equity BALANCE JUNE 30, 2014 2,710,806 54009 51.111 563,511 (51,340) (57.662) (575,805) 584,950 S762 569,976 Net earnings 7,036 100 7144 Other comprehensive lose 15,118) 15.1181 Dividends to shareholders Common 17.028) (7,028) Preferred, nat of tax hanefits (259) (259) Treasury purchases (54,670) (4,6041 (4,604) Employee plan issuances 54 100 156 3153 3309 Preferred stock conversions 4.335 (34) 4 30 30 ESOP dat impacts 20 68 88 Nuncontrolling interest.net (219) (239) (458) BALANCE JUNE 30, 2015 2.714 571 S4009 $1077 563 052 (512.780) (S77,226) $84,807 5631 563 050 Net earnings 10.08 96 10 604 Other comprehensive los (3,127) (3,127) Dhidends to shareholders Common (7.181) (7,181) Prearad net of tax hanefits (255) (256) Treasury purchases (103,4491 (8.217) 18.217) Employee plan issuances 52 089 3234 3.090 Preferred stock conversions 4.853 (39) 6 33 ESOP de impacts 30 74 104 Noncontrolling interest.net (85) ( (85) BALANCE JUNE 30, 2016 2,668074 $4009 $1.030 S63.714 ($1,290) (515 907) (Sa2,176) $67,953 S642 557 983 Net earnings 15,326 AS 15,411 Other comprehensive love 1,275 1,275 Didends to shareholders Common (6.989) (6,989) Prevered net of tax benefits (247) (247) Treasury purchases (164,866) (14,625) (14,625) Employee plan lasuances 45.80 3.058 2,981 Preferred stock conversions 4.241 (32) 4 28 ESOP debt impacts 41 81 122 Noncontrolling interest not (133) (133) BALANCE JUNE 30, 2017 2,553 297 $4,009 $1.006 $63,641 ($1,249) ($14,632) (593,715) 596,124 S594 $55.778 (1) Includes 54 213 of treasury shares acquired in the divestiture of the Batteries business (see Note 13) 12 Includes $9.421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (see Note 13). See accompanying Notes to Consolidated Financial Statements Consolidated Statements of Cash Flows 2017 2016 2015 $ 7,102 5 6,836 $ 8548 Amounts in millions: Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net carnings Depreciation and amortization Loss on carly extinguishment of debt 7.144 15,411 2.820 10,604 3.078 543 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 120,406 $ 127,136 Consolidated Statements of Shareholders' Equity Accumulated Total Common Additional Reserve for Other Non- Dollars in millions; Common Preferred Treasury Retained Share- Shares Paid-In ESOP Debt Comprehensive controlling Shares in thousands Stock Stock Stock Earnings holders' Outstanding Capital Retirement Income/ Interest Equity (Loss) BALANCE JUNE 30, 2014 2,710,806 $4,009 $1,111 $63,911 ($1,340) ($7,662) ($75,805) $84,990 7,036 $762 $69,976 108 7,144 (5,118) (5,118) (7,028) (259) Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases Employee plan issuances Preferred stock onversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2015 (7,028) (259) (4,604) 3,309 (54,670) 54,100 (4,604) 3,153 156 4,335 (34) 4 30 20 68 88 (219) (239) (458) 2,714,571 $4,009 $1,077 $63,852 ($1,320) ($12,780) ($77,226) $84,807 $631 $63,050 Net earnings 10,508 96 10,604 (3,127) (3,127) (7,181) (7,181) (255) (255) (8,217) (103,449) (8,217) 3,234 52,089 (144) 3,090 4,863 (39) 6 33 30 74 104 (85) (85) Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(1) Employee plan issuances Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(2) Employee plan issuances Preferred stock conversions ESOP debt impacts 2,668,074 $4,009 $1,038 $63,714 ($1,290) ($15,907) ($82,176) $87,953 $642 $57,983 15,326 85 15,411 1,275 1,275 (6,989) (247) (6,989) (247) (164,866) 45,848 (14,625) 3,058 (14,625) 2,981 (77) 4,241 (32) 4 28 41 81 122 Noncontrolling interest, net BALANCE JUNE 30, 2017 (133) (133) $594 $55,778 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 less (see Note 13). 2) Includes $9,421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (see Note 13). Consolidated Statements of Cash Flows 2017 2016 2015 $ 7,102 $ 6,836 $ 8,548 15,411 10,604 7,144 2,820 3,078 3,134 543 351 335 337 (601) Amounts in millions; Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other (815) (41) (5,490) (803) (766) 2,028 2,174 349 450 (322) 35 71 116 1,285 313 928 (149) (43) 204 (976) 746 162 184 12,753 15,435 14,608 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES (3,384) (3,314) (3,736) 571 432 4,498 (908) (16) (186) (137) (4,843) (2,815) (3,647) 1,488 1,354 1,203 (874) (996) (475) 1,870 Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments TOTAL INVESTING ACTIVITIES FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture (143) (26) 93 (163) (5,689) (5,575) (2,890) (7,236) (7,436) (7,287) 2,727 (418) (2,580) 3,603 3,916 2,138 (4,931) (1) (2,213) (3,512) (5,204) (4,004) (4,604) (1.730) Consolidated Balance Sheets 2017 2016 $ 5,569 $ 7,102 9,568 6,246 4,594 4,373 1,308 1,188 529 2,787 4,624 563 2,965 4,716 1,507 2,139 2,653 7,185 33,782 26,494 19,893 19,385 44,350 44,699 24,187 24,527 5,133 5,092 $ 120,406 $ 127,136 Amounts in millions; As of June 30 Assets CURRENT ASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventories Deferred income taxes Prepaid expenses and other current assets Current assets held for sale TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Current liabilities held for sale Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2017-4,009.2, 2016 - 4,009.2) Additional paid-in capital Reserve for ESOP debt retirement Accumulated other comprehensive income/loss) Treasury stock, at cost (shares held: 2017- 1,455.9, 2016 - 1,341.2) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY $ 9,632 $ 9,325 7,024 7,449 2,343 13,554 11,653 30,210 18,038 8,126 8,254 30,770 18,945 9,113 10,325 64,628 69,153 1,006 1,038 4,009 4,009 63,641 63,714 (1,249) (1,290) (14,632) (93,715) 96,124 (15,907) (82,176) 87,953 594 55,778 642 57,983 Question 1 The financial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the financial statements, is available online. Click here to view Appendix B Refer to P&G's financial statements and accompanying notes to answer the following questions. x Your answer is incorrect. Try again. Under P&G's stock-based compensation plan, stock options are granted annually to key managers and directors. (1) How many options were granted during 2017 under the plan? Options granted during 2017 (2) How many options were exercisable at June 30, 2017? Options exerciseable at June 30, 2017 (3) How many options were exercised in 2017, and what was the average price of those exercised? (Round average price to 2 decimal places, e.g. 15.25.) Options exercised in 2017 Average price (4) What is the total stock-based compensation expense for stock options and the total compensation expense for restricted stock, restricted stock units (RSUs), and performance stock units (PSUs) for 2017, 2016, and 2015? 2017 2016 2015 Total stock-based compensation expense Total compensation expense (5) To what accounts are the proceeds from these option exercises credited? Option exercises credited (6) What was the number of outstanding options at June 30, 2017, and at what average exercise price? (Round average price to 2 decimal places, e.g. 15.25.) Number of outstanding options Average exercise price LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. What number of diluted weighted average common shares outstanding was used by P&G in computing earnings per share for 2017, 2016, and 2015? (Round answers to millions upto 1 decimal places, e.g. 125.5.) (In millions) 2016 2017 2015 Weighted average common shares What was P&G's diluted earnings per share in 2017, 2016, and 2015? (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 2015 Diluted earnings per share Consolidated Statements of Earnings 2017 2016 2015 $ 65,058 $ 65,299 $ 70,749 32,535 32,909 37,056 Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Venezuela deconsolidation charge OPERATING INCOME 18,568 18,949 20,616 2,028 13.955 11,049 13,441 579 Interest expense 465 626 Interest income 171 182 149 325 440 (404) 13,257 13,369 11,012 3,342 2.725 3,063 10,194 10,027 8.287 5,217 577 (1,143) 15,411 '' l | |l | | | g 10,604 7,144 85 96 108 Other non-operating income/expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS/LOSS) FROM DISCONTINUED OPERATIONS NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations Earnings/(loss) from discontinued operations BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations Earnings/loss) from discontinued operations DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 15,326 $ 10,508 $ 7,036 $ 3.59 2.01 0.21 (0.42) $ 5.80 $ 3.80 $ 2.50 $ 3.49 $ 2.84 $ 3.69 1.90 0.20 (0.40) $ 2.44 $ 5.59 $ 3.69 $ 2.70 $ 2.66 $ 2.59 e calculated on Net earnings attributable to Procter & Gamble. Consolidated Statements of Comprehensive Income 2017 2016 2015 $ 15,411 $ 10,604 $ 7,144 239 Amounts in millions; Years ended June 30 NET EARNINGS OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation Unrealized gains/(losses) on hedges (net of $(186), $5 and $739 tax, respectively) Unrealized gains/(losses) on investment securities (net of $(6), $7 and $0 tax, respectively) Unrealized gains/(losses) on defined benefit retirement plans (net of $551, $(621) and $328 tax, respectively) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX TOTAL COMPREHENSIVE INCOME Less: Total comprehensive income attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE (306) (59) 1,401 (1,679) (7,220) 1 1,234 28 24 (1,477) 844 (3,127) (5,118) 7,477 2,026 96 108 1,275 16,686 85 $ 16,601 $ 7,381 $ 1,918 18.038 8.126 18,945 9.113 8 254 64.628 10,325 69,153 1.006 1,038 4.009 LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A proferred stock stated value $1 per share 600 shares authorized Non-Voting Class B preferred stock stated value 51 per share (200 shares authorized) Common stock stated value $1 per shara (10,000 shares authorized shares issued 2017 - 4,009 2 2016 - 40092) Additional pold-in capital Reserva for ESOP debt retirement Accumulated other comprehensive income foss) Treasury stock, at cost shares hold 2017. 14659 2016- 13412) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,009 63,641 63,714 (1,249) (1290) (14,632) (15.907) ) (93,715) (82.176) 96.124 87,953 594 642 55.770 57,983 $ 120,406 $ 127,136 See accompanying Notes to Consolidated Financial Statements Consolidated Statements of Shareholders' Equity Accumulated Total Non- Common Shares Common Preferred Dollars in millions; Shares in thousands Treasury Retained controlling Share- holders Stock Additional Reserve for Other Paldin ESOP Debt Comprahensive Capital Retirement Income L0331 Stock Stock Earnings Outstanding Interest Equity BALANCE JUNE 30, 2014 2,710,806 54009 51.111 563,511 (51,340) (57.662) (575,805) 584,950 S762 569,976 Net earnings 7,036 100 7144 Other comprehensive lose 15,118) 15.1181 Dividends to shareholders Common 17.028) (7,028) Preferred, nat of tax hanefits (259) (259) Treasury purchases (54,670) (4,6041 (4,604) Employee plan issuances 54 100 156 3153 3309 Preferred stock conversions 4.335 (34) 4 30 30 ESOP dat impacts 20 68 88 Nuncontrolling interest.net (219) (239) (458) BALANCE JUNE 30, 2015 2.714 571 S4009 $1077 563 052 (512.780) (S77,226) $84,807 5631 563 050 Net earnings 10.08 96 10 604 Other comprehensive los (3,127) (3,127) Dhidends to shareholders Common (7.181) (7,181) Prearad net of tax hanefits (255) (256) Treasury purchases (103,4491 (8.217) 18.217) Employee plan issuances 52 089 3234 3.090 Preferred stock conversions 4.853 (39) 6 33 ESOP de impacts 30 74 104 Noncontrolling interest.net (85) ( (85) BALANCE JUNE 30, 2016 2,668074 $4009 $1.030 S63.714 ($1,290) (515 907) (Sa2,176) $67,953 S642 557 983 Net earnings 15,326 AS 15,411 Other comprehensive love 1,275 1,275 Didends to shareholders Common (6.989) (6,989) Prevered net of tax benefits (247) (247) Treasury purchases (164,866) (14,625) (14,625) Employee plan lasuances 45.80 3.058 2,981 Preferred stock conversions 4.241 (32) 4 28 ESOP debt impacts 41 81 122 Noncontrolling interest not (133) (133) BALANCE JUNE 30, 2017 2,553 297 $4,009 $1.006 $63,641 ($1,249) ($14,632) (593,715) 596,124 S594 $55.778 (1) Includes 54 213 of treasury shares acquired in the divestiture of the Batteries business (see Note 13) 12 Includes $9.421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (see Note 13). See accompanying Notes to Consolidated Financial Statements Consolidated Statements of Cash Flows 2017 2016 2015 $ 7,102 5 6,836 $ 8548 Amounts in millions: Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net carnings Depreciation and amortization Loss on carly extinguishment of debt 7.144 15,411 2.820 10,604 3.078 543 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 120,406 $ 127,136 Consolidated Statements of Shareholders' Equity Accumulated Total Common Additional Reserve for Other Non- Dollars in millions; Common Preferred Treasury Retained Share- Shares Paid-In ESOP Debt Comprehensive controlling Shares in thousands Stock Stock Stock Earnings holders' Outstanding Capital Retirement Income/ Interest Equity (Loss) BALANCE JUNE 30, 2014 2,710,806 $4,009 $1,111 $63,911 ($1,340) ($7,662) ($75,805) $84,990 7,036 $762 $69,976 108 7,144 (5,118) (5,118) (7,028) (259) Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases Employee plan issuances Preferred stock onversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2015 (7,028) (259) (4,604) 3,309 (54,670) 54,100 (4,604) 3,153 156 4,335 (34) 4 30 20 68 88 (219) (239) (458) 2,714,571 $4,009 $1,077 $63,852 ($1,320) ($12,780) ($77,226) $84,807 $631 $63,050 Net earnings 10,508 96 10,604 (3,127) (3,127) (7,181) (7,181) (255) (255) (8,217) (103,449) (8,217) 3,234 52,089 (144) 3,090 4,863 (39) 6 33 30 74 104 (85) (85) Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(1) Employee plan issuances Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(2) Employee plan issuances Preferred stock conversions ESOP debt impacts 2,668,074 $4,009 $1,038 $63,714 ($1,290) ($15,907) ($82,176) $87,953 $642 $57,983 15,326 85 15,411 1,275 1,275 (6,989) (247) (6,989) (247) (164,866) 45,848 (14,625) 3,058 (14,625) 2,981 (77) 4,241 (32) 4 28 41 81 122 Noncontrolling interest, net BALANCE JUNE 30, 2017 (133) (133) $594 $55,778 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 less (see Note 13). 2) Includes $9,421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (see Note 13). Consolidated Statements of Cash Flows 2017 2016 2015 $ 7,102 $ 6,836 $ 8,548 15,411 10,604 7,144 2,820 3,078 3,134 543 351 335 337 (601) Amounts in millions; Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other (815) (41) (5,490) (803) (766) 2,028 2,174 349 450 (322) 35 71 116 1,285 313 928 (149) (43) 204 (976) 746 162 184 12,753 15,435 14,608 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES (3,384) (3,314) (3,736) 571 432 4,498 (908) (16) (186) (137) (4,843) (2,815) (3,647) 1,488 1,354 1,203 (874) (996) (475) 1,870 Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments TOTAL INVESTING ACTIVITIES FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture (143) (26) 93 (163) (5,689) (5,575) (2,890) (7,236) (7,436) (7,287) 2,727 (418) (2,580) 3,603 3,916 2,138 (4,931) (1) (2,213) (3,512) (5,204) (4,004) (4,604) (1.730) Consolidated Balance Sheets 2017 2016 $ 5,569 $ 7,102 9,568 6,246 4,594 4,373 1,308 1,188 529 2,787 4,624 563 2,965 4,716 1,507 2,139 2,653 7,185 33,782 26,494 19,893 19,385 44,350 44,699 24,187 24,527 5,133 5,092 $ 120,406 $ 127,136 Amounts in millions; As of June 30 Assets CURRENT ASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventories Deferred income taxes Prepaid expenses and other current assets Current assets held for sale TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Current liabilities held for sale Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2017-4,009.2, 2016 - 4,009.2) Additional paid-in capital Reserve for ESOP debt retirement Accumulated other comprehensive income/loss) Treasury stock, at cost (shares held: 2017- 1,455.9, 2016 - 1,341.2) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY $ 9,632 $ 9,325 7,024 7,449 2,343 13,554 11,653 30,210 18,038 8,126 8,254 30,770 18,945 9,113 10,325 64,628 69,153 1,006 1,038 4,009 4,009 63,641 63,714 (1,249) (1,290) (14,632) (93,715) 96,124 (15,907) (82,176) 87,953 594 55,778 642 57,983 Question 1 The financial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the financial statements, is available online. Click here to view Appendix B Refer to P&G's financial statements and accompanying notes to answer the following questions. x Your answer is incorrect. Try again. Under P&G's stock-based compensation plan, stock options are granted annually to key managers and directors. (1) How many options were granted during 2017 under the plan? Options granted during 2017 (2) How many options were exercisable at June 30, 2017? Options exerciseable at June 30, 2017 (3) How many options were exercised in 2017, and what was the average price of those exercised? (Round average price to 2 decimal places, e.g. 15.25.) Options exercised in 2017 Average price (4) What is the total stock-based compensation expense for stock options and the total compensation expense for restricted stock, restricted stock units (RSUs), and performance stock units (PSUs) for 2017, 2016, and 2015? 2017 2016 2015 Total stock-based compensation expense Total compensation expense (5) To what accounts are the proceeds from these option exercises credited? Option exercises credited (6) What was the number of outstanding options at June 30, 2017, and at what average exercise price? (Round average price to 2 decimal places, e.g. 15.25.) Number of outstanding options Average exercise price LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. What number of diluted weighted average common shares outstanding was used by P&G in computing earnings per share for 2017, 2016, and 2015? (Round answers to millions upto 1 decimal places, e.g. 125.5.) (In millions) 2016 2017 2015 Weighted average common shares What was P&G's diluted earnings per share in 2017, 2016, and 2015? (Round answers to 2 decimal places, e.g. 15.25.) 2017 2016 2015 Diluted earnings per share