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Posted on Jun 16, 2024

The nancial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the nancial statements, is available online.

The nancial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the nancial statements, is available online. Click here to view Appendix B. Refer to P&G's nancial statements and the related information in the annual report to answer the following questions. How much working capital did P&G have on June 30, 2017? On June 30, 2016? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter your answer in millions.) June 30, 2017 June 30, 2016 Working capital $ million 3; million What were P&G's cash ows from its operating, investing, and nancing activities for 2017? What were its trends in net cash provided by operating activities over the period 20152017? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2017 2016 2015 Net cash provided by operating activities $ millions $ millions $ millions Net cash used in investing activities $ millions $ millions $ millions Net cash used in nancing activities $ millions $ millions $ millions (Round answers to 1 decimal place, e.g. 52.7.) P&G's net cash provided by operating activities V by % from 2015 to 2016. P&G's net cash provided by operating activities V by % from 2016 to 2017. Compute P&G's (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash ow for 2017. (Round ratio values to 2 decimal places, e.g. 52.75.) Current Cash Debt Coverage :1 Cash Debt Coverage :1 Free cash ow The f'nancial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the nancial statements, is available online. Click here to view Appendix B Refer to these nancial statements and the accompanying notes to answer the following questions. What were P&G's total assets at June 30, 2017? At June 30, 2016? June 30, 2017 June 30, 2016 \"3\"\" \"58\" $ 120405 million _ million How much cash (and cash equivalents) did P&G have on June 30, 2017? Cash and cash equwalents _ million What were P&G's research and development costs in 2016? In 2017? 2017 2016 What were P&G's revenues in 2016? In 2017? 2017 2016 \"at sa'es $ 65058 million _ million What were the amounts of P&G's depreciation and amortization expense in 2015, 2016, and 2017? 2017 2016 2015 $ 15411 million $ 10504 million a; 7144 million Depreciation and amortization expense Kellogg Company has its headquarters in Battle Creek, Michigan. The company manufactures and sells readytoeat breakfast cereals and convenience foods including cookies, toaster pastries, and cereal bars. Selected data from Kellogg Company's recent annual report follows (dollar amounts in millions). Current Year Prior Year 2 Years Ago Sales $14,580 $14,792 $14,197 Gross prot % 34.73 41.26 38.28 Operating prot 1,024 2,837 1,562 Net cash flow less capital expenditures 1,211 1,170 1,225 Net earnings 633 1808 961 In its annual reports, Kellogg Company has indicated that it plans to achieve sustainability of its operating results with operating principles that emphasize prot-rich, sustainable sales growth, as well as cash ow and return on invested capital. Kellogg believes its steady earnings growth, strong cash ow, and continued investment during a multi-year period demonstrates the strength and flexibility of is business model. Compute the percentage change in sales, operating prot, net cash ow less capital expenditures, and net earnings from year to year for the years presented. (Round answers to 2 decimal places, e.g. 52.75%. If an amount reduces the account balance then enter with negative sign.) % % Change Change Current Year Last Year Sales -1.43I% 4.19 % Operating prot .53,91|% 81.63 % Net cash flow less capital expenditures 3,50l% -4.49 % Net earnings -64.99I% 88.14 % 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 the accompanying notes to answer the following questions. (c1) Compute P&G's gross prot for each of the years 20152017. 2017 2016 2015 Gross profit $ 32523 million $ 32390 million $ 33693 million Consolidated Statements of Earnings Amounts in millions except Ber share amounts; Years ended June 30 2017 2016 2015 NET SALES $ 65,058 $ 65,299 $ 70,749 Cost of products sold 32,535 32,909 37,056 Selling, general and administrative expense 18,568 18,949 20,616 Venezuela deconsolidation charge : : % OPERATING INCOME 13,955 13,441 M Interest expense 465 579 626 Interest income 171 182 149 Other non-operating income/(expense), net 404 g E EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 13,257 13,369 11,012 Income taxes on continuing operations 3,063 w @ NET EARNINGS FROM CONTINUING OPERATIONS 10,194 10,027 w NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS 5,217 E m NET EARNINGS 15,411 10,604 M Less: Net earnings attributable to noncontrolling interests g g m NET EARNINGS A1TRIBUTABLE TO PROCTER & GAMBLE $ 15,326 $ 10,508 $ 7,036 BASIC NET EARNINGS PER COMMON SHARE: (1) Earnings from continuing operations $ 3.79 $ 3.59 $ 2.92 Earnings/(loss) from discontinued operations m E m BASIC NET EARNINGS PER COMMON SHARE $ 5.80 $ 3.80 $ 2.50 DILUTED NET EARNINGS PER COMMON SHARE: \"I Earnings from continuing operations $ 3.69 $ 3.49 $ 2.84 Earnings/(loss) from discontinued operations m M M DILUTED NET EARNINGS PER COMMON SHARE $ 5.59 $ 3.69 $ 2.44 DIVIDENDS PER COMMON SHARE $ 2.70 $ 2.66 $ 2.59 (1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. 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 oi $(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 A1TRIBUTABLE TO PROCTER & GAMBLE 2017 2016 2015 $15,411 $10,604 $7.144 239 (306) (59) 1,401 1 6,686 g $ 16,601 (1,679) (7,220) 1 1 ,234 28 24 m2 % M 1m 7,477 M a E $ 7,381 $1,918 Consolidated Balance Sheets Amounts in millions; As of June 30 m M Assets CURRENT ASSETS Cash and cash equivalents $ 5,569 $ 7,102 Available-forsale investment securities 9,568 6,246 Accounts receivable 4,594 4,373 INVENTORIES Materials and supplies 1,308 1,188 Work in process 529 563 Finished goods w w Total inventories 4,624 4,716 Deferred income taxes 1,507 Prepaid expenses and other current assets 2,139 2,653 Current assets held for sale : 7,185 TOTAL CURRENT ASSETS 26,494 33,782 PROPERTY, PLANT AND EQUIPMENT, NET 19,893 19,385 GOODWILL 44,699 44,350 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 24,187 24,527 OTHER NONCURRENT ASSETS 5,133 5,092 TOTAL ASSETS $ 120,406 $ 127,136 Liabilities and Shareholders' Eguig CURRENT LIABILITIES Accounts payable $ 9,632 Accrued and other liabilities 7,024 Current liabilities held for sale Debt due within one year 13,554 TOTAL CURRENT LIABILITIES 30,210 LONG-TERM DEBT 18,038 DEFERRED INCOME TAXES 8,126 OTHER NONCURRENT LIABILITIES w TOTAL LIABILITIES 64,628 SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 1,006 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) 4,009 Additional paid-in capital 63,641 Reserve for ESOP debt retirement (1,249) Accumulated other comprehensive income/(loss) (14,632) Treasury stock, at cost (shares held: 2017 - 1,455.9, 2016 - 1,341.2) (93,715) Retained earnings 96,124 Noncontrolling interest & TOTAL SHAREHOLDERS' EQUITY 55,778 $ 9,325 7,449 2,343 11,653 30,770 18,945 9,113 10,325 69,153 1,038 4,009 63,714 (1,290) (15,907) (82,176) 87,953 E 57,983 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 120,406 $ 127,136 Consolidated Statements of Shareholders' Equity Accumulated Total Common Non- Dollars in millions; Additional Reserve for Other Shares Common Preferred Share- Shares in thousands Stock Paid-In ESOP Debt Comprehensive Treasury Retained Stock controlling Outstanding Capital Retirement Stock Earnings holders' 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 $762 $69,976 Net earnings 7,036 108 7, 144 Other comprehensive loss (5, 118) (5, 118) Dividends to shareholders: Common (7,028) (7,028) Preferred, net of tax benefits (259) (259) Treasury purchases (54,670) (4,604) (4,604) Employee plan issuances 54, 100 156 3,153 3,309 Preferred stock conversions 4,335 (34) 4 30 ESOP debt impacts 20 68 88 Noncontrolling interest, net (219) 239) (458 BALANCE JUNE 30, 2015 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 Other comprehensive loss (3, 127) (3, 127) Dividends to shareholders: Common (7,181) (7, 181) Preferred, net of tax benefits (255) (255) Treasury purchases(1) (103,449) (8,217) (8,217) Employee plan issuances 52,089 (144) 3,234 3,090 Preferred stock conversions 4,863 (39) 6 33 ESOP debt impacts 30 74 104Noncontrolling interest, net (85) (85) BALANCE JUNE 30, 2016 2,668,074 $4,009 $1,038 $63,714 ($1,290) ($15,907) ($82,176) $87,953 $642 $57,983 Net earnings 15,326 85 15,411 Other comprehensive loss 1,275 1,275 Dividends to shareholders: Common (6,989) (6,989) Preferred, net of tax benefits (247) (247) Treasury purchases(2) (164,866) (14,625) (14,625) Employee plan issuances 45,848 (77) 3,058 2,981 Preferred stock conversions 4,241 (32) 4 28 ESOP debt impacts 41 81 122 Noncontrolling interest, net (133) (133) BALANCE JUNE 30, 2017 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 $594 $55,778(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. Consolidated Statements of Cash Flows Amounts in millions; Years ended June 30 M M w CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR $ 7,102 $ 6,836 $ 8,548 OPERATING ACTIVITIES Net earnings 15,411 10,604 7,144 Depreciation and amortization 2,820 3,078 3,134 Loss on early extinguishment of debt 543 Share-based compensation expense 351 335 337 Deferred income taxes (601) (815) (803) Gain on sale of assets (5,490) (41) (766) Venezuela deconsolidation charge 2,028 Goodwill and intangible asset impairment charges 450 2,174 Change in accounts receivable (322) 35 349 Change in inventories 71 116 313 Change in accounts payable, accrued and other liabilities (149) 1,285 928 Change in other operating assets and liabilities (43) 204 (976) Other E m @ TOTAL OPERATING ACTIVITIES 12,753 15,435 14,608 INVESTING ACTIVITIES Capital expenditures (3,384) (3,314) (3,736) Proceeds from asset sales 571 432 4,498 Cash related to deconsolidated Venezuela operations (908) Acquisitions, net of cash acquired (16) (186) (137) Purchases of short-term investments (4,843) (2,815) (3,647) Proceeds from sales and maturities of short-term investments 1,488 1,354 1,203 Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture (874) (996) 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 (143) Change in other investments (g) 93 (163) 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 Impact of stock options and other TOTAL FINANCING ACTIVITIES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE Cash payments for interest Cash payment for income taxes Divestiture of Batteries business in exchange for shares of P&G stock\") Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt Assets acquired through non-cash capital leases are immaterial for all periods. (5,689) (7,236) 2,727 3,603 (4,931) (1) (5,204) 2,473 (8,568) (at [1 ,533! 15,575! 12,890! (7,436) (7,287) (418) (2,580) 3,916 2,138 (2,213) (3,512) (4,004) (4,604) (1 ,730) 2,672 2,826 9,213! 13,019! I381! (411! @ () $ 5,569 $ 7,102 $ 6,836 $ 518 $ 569 $ 678 3,714 11,360 3,730 4,558 4,213 (1) Includes $543 of costs related to early extinguishment of debt?) Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13) See accompanying Notes to Consolidated Financial Statements. Financial Summary (Unaudited) Amounts in millions_, except per share amounts 2018 2017 2016 2015 2014 2013 Net sales 8 66,832 $ 65,058 $ 65,299 $ 70,749 $ 74,401 $ 73,910 Gross prot 32,564 32,523 32,390 33,693 35,371 35,858 Operating income 13,711 13,955 13,441 11,049 13,910 13,051 Net earnings from continuing operations 9,861 10,194 10,027 8,287 10,658 10,346 Net earnings/(loss) from discontinued operations 5,217 577 (1,143) 1,127 1,056 Net earnings attributable to Procter & Gamble 9,750 15,326 10,508 7,036 11,643 1 1,312 Net earnings margin from continuing operations 14.8% 15.7% 15.4% 11.7% 14.3% 14.0% Basic net earnings per common share: (I) Earnings from continuing operations 3 3.75 $ 3.79 $ 3.59 $ 2.92 $ 3.78 $ 3.65 Earnings/(loss) from discontinued operations 2.01 0.21 (0.42) 0.41 0.39 Basic net earnings per common share $ 3.75 $ 5.80 $ 3.80 $ 2.50 $ 4.19 $ 4.04 Diluted net earnings per common share: (1) Earnings from continuing operations 3 3.67 $ 3.69 $ 3.49 $ 2.84 $ 3.63 $ 3.50 Earnings/(loss) from discontinued operations 1.90 0.20 (0.40) 0.38 0.36 Diluted net earnings per common share $ 3.67 $ 5.59 $ 3.69 $ 2.44 $ 4.01 $ 3.86 Dividends per common share $ 2.79 $ 2.70 $ 2.66 $ 2.59 $ 2.45 $ 2.29 Research and development expense 3 1,908 $ 1,874 $ 1,879 $ 1,991 8 1,910 $ 1,867 Advertising expense 7,103 7,1 18 7,243 7,180 7,867 8,188 Total assets 118,310 120,406 127,136 129,495 144,266 139,263 Capital expenditures 3,717 3,384 3,314 3,736 3,848 4,008 Long-term debt 20,863 18,038 18,945 18,327 19,807 19,11 1 Shareholders' equity 8 52,883 $ 55,778 $ 57,983 $ 63,050 $ 69,976 $ 68,709 (I) Basic net earnings per common share and Diluted net earnings per common share are calculated based on Net earnings attributable to Procter & Gamble. SUMMARY OF 2017 RESULTS Change vs. Change vs. Amounts in millions, except p_er share amounts 2017 Prior Year 2016 Prior Year 2015 Net sales $ 65,058 % $ 65,299 (8)% $ 70,749 Operating income 13,955 4 % 13,441 22 % 1 1,049 Net earnings from continuing operations 10,194 2 % 10,027 21 % 8,287 Net earnings/(loss) from discontinued operations 5,217 804 % 577 N/A (1,143) Net earnings attributable to Procter & Gamble 15,326 46 % 10,508 49 % 7,036 Diluted net earnings per common share 5.59 51 % 3.69 51 % 2.44 Diluted net earnings per share from continuing operations 3.69 6 % 3.49 23 % 2.84 Core earnings per share 3.92 7 % 3.67 (2)% 3.76 Cash ow from operating activities 12,753 (1'0% 15,435 6 % 14,608 Amounts in millions Total Less Than 1 Year RECORDED LIABILITIES Total debt $ 31,455 $ 13,543 Capital leases 51 13 Uncertain tax positions (1) 18 18 OTHER Interest payments relating to long-term debt 5,220 594 Operating leases (2) 1,493 261 Minimum pension funding (3) 378 123 Purchase obligations (4) 1,607 343 TOTAL CONTRACTUAL COMMITNIENTS $ 40,222 $ 15,395 $ $ 1-3 Years 3,101 20 1,014 510 255 393 5,293 35 Years After 5 Years 3; 4,236 $ 10,575 10 8 887 2,725 354 368 169 202 $ 5,656 $ 13,878 Earnings/(Loss) from Continuing Operations Net Earnings /(Loss) from Depreciation Global Segment Results Before Net Sales Continuing and Total Income Taxes Capital Operations Amortization Assets Expenditures BEAUTY 2017 $ 11,429 $ 2,546 $ 1,914 $ 220 $ 4,184 $ 599 2016 11,477 2,636 1,975 218 3,888 435 2015 12,608 2,895 2,181 247 4,004 411 GROOMING 2017 6,642 1,985 1,537 433 22,759 341 2016 6,815 2,009 1,548 451 22,819 383 2015 7,441 2,374 1,787 540 23,090 372 HEALTH CARE 2017 7,513 1,898 1,280 209 5,194 283 2016 7,350 1,812 1,250 204 5,139 240 2015 7,713 1,700 1,167 202 5,212 218 FABRIC & HOME CARE 2017 20,717 4,249 2,713 513 6,886 797 2016 20,730 4,249 2,778 531 6,919 672 2015 22,274 4,059 2,634 547 7,155 986 BABY, FEMININE & FAMILY CARE 2017 18,252 3,868 2,503 874 9,920 1,197 2016 18,505 4,042 2,650 886 9,863 1,261 2015 20,247 4,317 2,938 924 10, 109 1,337 CORPORATE (1) 2017 505 (1,289) 247 571 71,463 167 2016 422 (1,379) (174) 788 78,508 323 2015 466 (4,333) (2,420) 674 79,925 412 TOTAL COMPANY 2017 $ 65,058 $ 13,257 $ 10,194 2,820 $ 120,406 $ 3,384 2016 65,299 13,369 10,027 3,078 127,136 3,314 2015 70,749 11,012 8,287 3,134 129,495 3,736 1) The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Beauty Brands, Batteries and Pet Care businesses prior to their divestiture