ORIOLE COMPANY Intangibles Section of Balance Sheet December 31, 2020 V Intangible Assets Patents $ Franchises Total Intangible Assets $ e Textbook and Media List of Accounts 2016 2015 $ 70,749 2017 $ 65,058 32,535 18,568 $ 65,299 32,909 18,949 37,056 20,616 2,028 13,441 579 182 11,049 626 325 149 440 11,012 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 Interest expense Interest income 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 13,955 465 171 (404) 13,257 3,063 10,194 5,217 15,411 85 $ 15,326 13,369 3,342 10,027 577 10,604 96 $ 10,508 2,725 8,287 (1,143) 7,144 108 $ 7,036 $ 3.79 $ 3.59 2.01 0.21 2.92 (0.42) 2.50 $ 5.80 $ 3.80 $ $ $ 3.49 $ 3.69 1.90 5.59 2.84 (0.40) 2.44 $ 0.20 3.69 2.66 $ $ $ 2.70 $ $ 2.59 2016 2017 $ 15,411 2015 $ 7,144 $ 10,604 (1,679) 1 Consolidated Statements of Comprehensive Income 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 $o 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 239 (306) (59) 1,401 1,275 16,686 85 $ 16,601 28 (1,477) (3,127) 7,477 96 $ 7,381 (7,220) 1,234 24 844_ (5,118) 2,026 108 $ 1,918 Consolidated Balance Sheets 2017 2016 $ $ 5,569 9,568 4,594 7,102 6,246 4,373 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 inventoreis Deferred income taxes Prepaid expenses and other current assets Current assets held for sale TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL 1,308 529 2,787 4,624 1,188 563 2,965 4,716 1,507 2,653 7,185 33,782 19,385 44.350 2,139 26,494 19,893 44,699 PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS 19,893 44,699 24,187 5,133 $ 120,406 19,385 44,350 24,527 5,092 $ 127,136 $ $ 9,632 7,024 13,554 30,210 18,038 9,325 7,449 2,343 11,653 30,770 18,945 9,113 10,325 69,153 8,126 8,254 64,628 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 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,006 1,038 4,009 63,641 (1,249) (14,632) (93,715) 96,124 594 55,778 $ 120,406 4,009 63,714 (1,290) (15,907) (82,176) 87,953 642 57,983 $ 127,136 Paid-In Capital $63,911 ESOP Debt Retirement ($1,340) Income/ Treasury Retained controlling holders' (Loss) Stock Earnings Interest Equity ($7,662) $75,805) $84,990 $762 $69,976 7,036 108 7,144 (5,118) (5,118) (7,028) (259) (7,028) (259) (4,604) 3,309 156 (4,604) 3,153 30 ) 4 20 68 (219) $63,852 ($1,320) Dollars in millions; Shares Common Preferred Shares in thousands Outstanding Stock Stock BALANCE JUNE 30, 2014 2,710,806 $4,009 $1,111 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases (54,670) Employee plan issuances 54,100 Preferred stock conversions 4,335 (34) ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2015 2,714,571 $4,009 $1,077 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases (1) (103,449) Employee plan issuances 52,089 Preferred stock conversions 4,863 (39) ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 2,668,074 $4,009 $1,038 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits ($12,780) ($77,226) $84,807 10,508 (3,127) 88 (239) (458) $631 $63,050 96 10,604 (3,127) (7,181) (255) (7,181) (255) (8,217) 3,090 (144) 6 (8,217) 3,234 33 30 74 104 $63,714 ($1,290) ($15,907) ($82,176) $87,953 15,326 1,275 (85) (85) $642 $57,983 15,411 1,275 85 (6,989) (247) (6,989) (247) (164,866) 45,848 4,241 (14,625) 3,058 28 (14,625) 2,981 (77) 4 Treasury purchases(2) Employee plan issuances Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2017 (32) 41 81 122 (133) (133) $594 $55,778 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 (1) Includes $4,213 of treasury shares acquired in the divestiture of the Batteries business (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). See accompanying Notes to Consolidated Financial Statements. tements of Cash Flows 2017 $ 7,102 2016 2015 $ 6,836 $ 8,548 10,604 3,078 7,144 3,134 15,411 2,820 543 351 (601) (5,490) 335 (815) (41) 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 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures 450 35 116 (322) 71 (149) (43) 162 337 (803) (766) 2,028 2,174 349 313 928 (976) 746 14,608 1,285 204 184 12,753 15,435 (3.384) (3.314) (3.736) (3,314) 432 (3,736) 4,498 (908) (137) (3,647) 1,203 (186) (2,815) 1,354 (996) (143) 93 (5,575) (163) (2,890) INVESTING ACTIVITIES Capital expenditures (3,384) Proceeds from asset sales 571 Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired (16) Purchases of short-term investments (4,843) Proceeds from sales and maturities of short-term investments 1,488 Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture (874) Cash transferred at closing related to the Beauty Brands divestiture (475) Release of restricted cash upon closing of the Beauty Brands divestiture 1,870 Cash transferred in Batteries divestiture Change in other investments (26) TOTAL INVESTING ACTIVITIES (5,689) FINANCING ACTIVITIES Dividends to shareholders (7,236) Change in short-term debt 2,727 Additions to long-term debt 3,603 Reductions of long-term debt (4,931)(1) Treasury stock purchases (5,204) Treasury stock from cash infused in Batteries divestiture Impact of stock options and other 2,473 TOTAL FINANCING ACTIVITIES (8,568) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (29) CHANGE IN CASH AND CASH EQUIVALENTS (1,533) CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,569 $ SUPPLEMENTAL DISCLOSURE Cash payments for interest $ 518 $ Cash payment for income taxes 3,714 Divestiture of Batteries business in exchange for shares of P&G stock(2) Divestiture of Beauty business in evobange for shares of P&C stolzand assumption of debt (7,436) (418) 3,916 (2,213) (4,004) (1,730) 2,672 (9,213) (7,287) (2,580) 2,138 (3,512) (4,604) 2.826 (13,019) (381) (411) 266 (1,712) 7,102 $ 6,836 569 $ 3,730 678 4,558 4,213 11260 ORIOLE COMPANY Intangibles Section of Balance Sheet December 31, 2020 V Intangible Assets Patents $ Franchises Total Intangible Assets $ e Textbook and Media List of Accounts 2016 2015 $ 70,749 2017 $ 65,058 32,535 18,568 $ 65,299 32,909 18,949 37,056 20,616 2,028 13,441 579 182 11,049 626 325 149 440 11,012 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 Interest expense Interest income 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 13,955 465 171 (404) 13,257 3,063 10,194 5,217 15,411 85 $ 15,326 13,369 3,342 10,027 577 10,604 96 $ 10,508 2,725 8,287 (1,143) 7,144 108 $ 7,036 $ 3.79 $ 3.59 2.01 0.21 2.92 (0.42) 2.50 $ 5.80 $ 3.80 $ $ $ 3.49 $ 3.69 1.90 5.59 2.84 (0.40) 2.44 $ 0.20 3.69 2.66 $ $ $ 2.70 $ $ 2.59 2016 2017 $ 15,411 2015 $ 7,144 $ 10,604 (1,679) 1 Consolidated Statements of Comprehensive Income 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 $o 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 239 (306) (59) 1,401 1,275 16,686 85 $ 16,601 28 (1,477) (3,127) 7,477 96 $ 7,381 (7,220) 1,234 24 844_ (5,118) 2,026 108 $ 1,918 Consolidated Balance Sheets 2017 2016 $ $ 5,569 9,568 4,594 7,102 6,246 4,373 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 inventoreis Deferred income taxes Prepaid expenses and other current assets Current assets held for sale TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL 1,308 529 2,787 4,624 1,188 563 2,965 4,716 1,507 2,653 7,185 33,782 19,385 44.350 2,139 26,494 19,893 44,699 PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS 19,893 44,699 24,187 5,133 $ 120,406 19,385 44,350 24,527 5,092 $ 127,136 $ $ 9,632 7,024 13,554 30,210 18,038 9,325 7,449 2,343 11,653 30,770 18,945 9,113 10,325 69,153 8,126 8,254 64,628 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 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,006 1,038 4,009 63,641 (1,249) (14,632) (93,715) 96,124 594 55,778 $ 120,406 4,009 63,714 (1,290) (15,907) (82,176) 87,953 642 57,983 $ 127,136 Paid-In Capital $63,911 ESOP Debt Retirement ($1,340) Income/ Treasury Retained controlling holders' (Loss) Stock Earnings Interest Equity ($7,662) $75,805) $84,990 $762 $69,976 7,036 108 7,144 (5,118) (5,118) (7,028) (259) (7,028) (259) (4,604) 3,309 156 (4,604) 3,153 30 ) 4 20 68 (219) $63,852 ($1,320) Dollars in millions; Shares Common Preferred Shares in thousands Outstanding Stock Stock BALANCE JUNE 30, 2014 2,710,806 $4,009 $1,111 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases (54,670) Employee plan issuances 54,100 Preferred stock conversions 4,335 (34) ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2015 2,714,571 $4,009 $1,077 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases (1) (103,449) Employee plan issuances 52,089 Preferred stock conversions 4,863 (39) ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 2,668,074 $4,009 $1,038 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits ($12,780) ($77,226) $84,807 10,508 (3,127) 88 (239) (458) $631 $63,050 96 10,604 (3,127) (7,181) (255) (7,181) (255) (8,217) 3,090 (144) 6 (8,217) 3,234 33 30 74 104 $63,714 ($1,290) ($15,907) ($82,176) $87,953 15,326 1,275 (85) (85) $642 $57,983 15,411 1,275 85 (6,989) (247) (6,989) (247) (164,866) 45,848 4,241 (14,625) 3,058 28 (14,625) 2,981 (77) 4 Treasury purchases(2) Employee plan issuances Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2017 (32) 41 81 122 (133) (133) $594 $55,778 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 (1) Includes $4,213 of treasury shares acquired in the divestiture of the Batteries business (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). See accompanying Notes to Consolidated Financial Statements. tements of Cash Flows 2017 $ 7,102 2016 2015 $ 6,836 $ 8,548 10,604 3,078 7,144 3,134 15,411 2,820 543 351 (601) (5,490) 335 (815) (41) 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 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures 450 35 116 (322) 71 (149) (43) 162 337 (803) (766) 2,028 2,174 349 313 928 (976) 746 14,608 1,285 204 184 12,753 15,435 (3.384) (3.314) (3.736) (3,314) 432 (3,736) 4,498 (908) (137) (3,647) 1,203 (186) (2,815) 1,354 (996) (143) 93 (5,575) (163) (2,890) INVESTING ACTIVITIES Capital expenditures (3,384) Proceeds from asset sales 571 Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired (16) Purchases of short-term investments (4,843) Proceeds from sales and maturities of short-term investments 1,488 Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture (874) Cash transferred at closing related to the Beauty Brands divestiture (475) Release of restricted cash upon closing of the Beauty Brands divestiture 1,870 Cash transferred in Batteries divestiture Change in other investments (26) TOTAL INVESTING ACTIVITIES (5,689) FINANCING ACTIVITIES Dividends to shareholders (7,236) Change in short-term debt 2,727 Additions to long-term debt 3,603 Reductions of long-term debt (4,931)(1) Treasury stock purchases (5,204) Treasury stock from cash infused in Batteries divestiture Impact of stock options and other 2,473 TOTAL FINANCING ACTIVITIES (8,568) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (29) CHANGE IN CASH AND CASH EQUIVALENTS (1,533) CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,569 $ SUPPLEMENTAL DISCLOSURE Cash payments for interest $ 518 $ Cash payment for income taxes 3,714 Divestiture of Batteries business in exchange for shares of P&G stock(2) Divestiture of Beauty business in evobange for shares of P&C stolzand assumption of debt (7,436) (418) 3,916 (2,213) (4,004) (1,730) 2,672 (9,213) (7,287) (2,580) 2,138 (3,512) (4,604) 2.826 (13,019) (381) (411) 266 (1,712) 7,102 $ 6,836 569 $ 3,730 678 4,558 4,213 11260
