The official SEC filing of the annual report is called a Form 10-K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present The Procter & Gamble Company (P&G)'s financial statements taken from the company's 2017 Form 10-K. 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 Venezuela deconsolidation charge 2017 $ 65,058 32,535 2016 2015 $ 65,299 $ 70,749 32,909 37,056 18,568 18,949 20,616 2,028 OPERATING INCOME 13.955 13-441 11,049 Interest expense 465 579 626 Interest income 171 182 149 Other non-operating income/(expense), net (404) 325 440 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 13.257 13.369 11,012 Income taxes on continuing operations 3.063 3:342 2,725 NET EARNINGS FROM CONTINUING OPERATIONS 10.194 10,027 8,287 NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS 5.217 572 (1,143) NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE:() Earnings from continuing operations Earnings/(loss) from discontinued operations BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE:() Earnings from continuing operations Earnings/(loss) from discontinued operations DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE 15.411 10,604 7.144 85 96 108 $15.326 $ 10,508 $ 7,036 $ 3.79 $ 3-59 $ 2.92 2.01 0.21 (0.42) $ 5.80 $ 3.80 $ 2.50 $ 3.69 $ 3-49 $ 2.84 1.90 0.20 (0.40) $ 5-59 $ 3.69 $ 2-44 $ 2.70 $ 2.66 $ 2.59 (*) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. Consondated Balance Sneets 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 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 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2017 2016 $ 5.569 $ 7,102 9.568 6,246 4.594 4.373 1,308 1,188 529 563 2-8- 2,965 4.624 4,716 1,507 2,139 2,653 7,185 26.494 33-782 19,893 19.385 44.699 44.350 24.187 24,527 5.133 5,092 $ 120,406 $ 127136 $ 9.632 $ 9.325 7,024 7,449 2,343 13-554 11,653 30,210 30,770 18,038 18,945 8,126 9,113 8,254 10,325 64,628 69.153 1,006 1,038 4.009 4,009 63,641 63.714 (1,249) (1,290) (14.632) (15.907) (93.715) (82,176) 96,124 87,953 394 55.778 $ 120,406 642 57.983 $ 127136 Consolidated Statements of Shareholders' Equity Common Dollars in millions; Shares in thousands BALANCE JUNE 30, 2014 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases Employee plan issuances Preferred stock conversions ESOP debt impacts Accumulated Other Additional Reserve for Comprehensive Shares Common Preferred Paid-In ESOP Debt Outstanding Stock Stock 2,710,806 $4,009 $1,111 Capital Retirement $63.911 ($1,340) Income/ (Loss) Total Non- Share- Treasury Retained controlling holders' Stock Earnings Interest Equity $762 $69.976 ($7,662) ($75,805) $84,990 7,036 108 7,144 (5,118) (5,118) (7,028) (7,028) (259) (259) (54,670) 54.100 4,335 156 (4,604) 3,153 (4,604) 3.309 (34) 30 20 68 88 Noncontrolling interest, net BALANCE JUNE 30, 2015 Net earnings 2,714,571 $4.009 $1,077 (219) $63,852 ($1,320) ($12,780) ($77.226) $84,807 (239) (458) $631 $63,050 10,508 96 10,604 Other comprehensive loss (3.127) (3,127) Dividends to shareholders: Common Preferred, net of tax benefits (7,181) (7,181) (255) (255) Treasury purchases(x) (103,449) (8,217) (8,217) Employee plan issuances 52,089 Preferred stock conversions 4,863 (39) (144) 6 3,234 3,090 33 - ESOP debt impacts 30 74 104 Noncontrolling interest, net (85) (85) BALANCE JUNE 30, 2016 Net earnings 2,668,074 $4.009 $1,038 $63.714 ($1,290) ($15,907) ($82,176) $87.953 15.326 Other comprehensive loss 1,275 $642 $57,983 85 15.411 1,275 Treasury purchases(2) Dividends to shareholders: Common Preferred, net of tax benefits Employee plan issuances Preferred stock conversions (6,989) (247) (6,989) (247) (164,866) 45.848 4.241 ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2017 (14,625) 3,058 (14.625) 2,981 (32) 28 41 81 122 2.553.297 $4.009 $1,006 863,641 ($1,249) ($14.632) (893.715) 896,124 (133) (133) 8594 855.778 (4) 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 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2017 2016 2015 $ 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 162 184 746 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures Proceeds from asset sales Acquisitions, net of cash acquired 12.753 15.435 14,608 (3.384) (3.314) (3.736) 571 432 4,498 Cash related to deconsolidated Venezuela operations Purchases of short-term investments Proceeds from sales and maturities of short-term investments 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 - (16) - (908) (186) (137) (4,843) (2,815) (3,647) 1,488 1,354 1,203 Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture (874) (996) (475) 1,870 (143) Change in other investments TOTAL INVESTING ACTIVITIES (26) 93 (163) (5.689) (5.575) (2,890) FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt (7,236) (7,436) (7,287) 2,727 (418) (2,580) 3,603 3,916 2,138 Reductions of long-term debt Treasury stock purchases (5,204) (4.931)() (2,213) (3,512) (4,004) (4,604) Treasury stock from cash infused in Batteries divestiture - (1,730) - Impact of stock options and other 2.473 2,672 2,826 TOTAL FINANCING ACTIVITIES (8,568) (9,213) (13,019) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (29) (381) (411) CHANGE IN CASH AND CASH EQUIVALENTS (1,533) 266 (1,712) CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,569 $ 7,102 $ 6,836 SUPPLEMENTAL DISCLOSURE Cash payments for interest $ 518 $ 569 $ 678 Cash payment for income taxes 3.714 3,730 4,558 Divestiture of Batteries business in exchange for shares of P&G stock(2) - 4,213 Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt 11,360 Assets acquired through non-cash capital leases are immaterial for all periods. (1) Includes $543 of costs related to early extinguishment of debt. (2) 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. 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 21425 (2) How many options were exercisable at June 30, 2017? Options exerciseable at June 30, 2017 140803 (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 44070 Average price 66.71 (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? based compensation expense ensation expense 69 $ 69 2017 216 366 (5) To what accounts are the proceeds from these option exercises credited? Option exercises credited Common Stock and Additional Paid-In Capital 2016 199 342 19 2015 (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 206485 Average exercise price $ 72.46 22 33 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.) 2017 Weighted-average common shares (In millions) 2016 2015 What was P&G's diluted earnings per share in 2017, 2016, and 2015? (Round answers to 2 decimal places, e.g. 15.25.) Diluted earnings per share $ 2017 $ 2016 69 $ 2015