The Procter & Gamble Company Consolidated Statements of Comprehensive Income Amounts in millions; Years ended June 30 NET EARNINGS OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement foreign currency translation 2018 2017 2016 $ 9,861 $ 15,411 $ 10,604 (6) 239 (1,679) Unrealized gains/(losses) on hedges (net of $(279), $(186) and $5 tax, respectively) (299) (306) 1 Unrealized gains/(losses) on investment securities (net of $0, $(6) and $7 tax, respectively) (148) (59) 28 Unrealized gains/(losses) on defined benefit retirement plans (net of $68, $551 and $(621) tax, respectively) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX 334 1,401 (1,477) (119) 1,275 (3,127) TOTAL COMPREHENSIVE INCOME Less: Total comprehensive income attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE 9,742 16,686 7,477 109 85 96 $ 9,633 $ 16,601 $ 7,381 Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold 2018 2017 2016 $ 66,832 $ 65,058 $ 65,299 34,268 32,535 32,909 Selling, general and administrative expense 18,853 18,568 18,949 OPERATING INCOME Interest expense 13,711 13,955 13,441 506 465 579 Interest income Other non-operating income/(expense), net 247 171 182 (126) (404) 325 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROM DISCONTINUED OPERATIONS NET EARNINGS 13,326 13,257 13,369 3,465 3,063 3,342 9,861 10,194 10,027 5,217 577 9,861 15,411 10,604 Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 111 85 96 $ 9,750 $ 15,326 $ 10,508 (1) BASIC NET EARNINGS PER COMMON SHARE: Earnings from continuing operations Earnings from discontinued operations $ 3.75 $ 3.79 $ 3.59 2.01 0.21 BASIC NET EARNINGS PER COMMON SHARE $ 3.75 $ 5.80 $ 3.80 DILUTED NET EARNINGS PER COMMON SHARE: (1) Earnings from discontinued operations Earnings from continuing operations DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 3.67 $ 3.69 $ 3.49 1.90 0.20 $ 3.67 $ 5.59 $ 3.69 $ 2.79 $ 2.70 $ 2.66 (1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. CURRENT ASSETS 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 Liabilities and Sharesholders' 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 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: 2018 4,009.2, 2017 - 4,009.2) Additional paid-in capital Reserve for ESOP debt retirement Accumulated other comprehensive income/(loss) Treasury stock, at cost (shares held: 2018 -1,511.2, 2017 - 1,455.9) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,569 $ 5,569 9,281 9,568 4,686 4,594 1,335 1,308 588 529 2,815 2,787 4,738 4,624 2,046 2,139 23,320 26,494 20,600 19,893 45,175 44,699 23,902 24,187 5,313 5,133 S 118,310 $ 120,406 $ 10,344 $ 9,632 7,470 7,024 10,423 13,554 28,237 30,210 20,863 18,038 6,163 8,126 10,164 8,254 65,427 64,628 967 1,006 4,009 4,009 63,846 63,641 (1,204) (1,249) (14,749) (14,632) (99,217) (93,715) 98,641 96,124 590 52,883 594 55,778 $ 118,310 $ 120,406 The Procter & Gamble Company Consolidated Statements of Shareholders' Equity Dollars in millions; shares in thousands BALANCE JUNE 30, 2015 Net earnings Other comprehensive lass Dividends and dividend equivalents: Common Preferred, net of tax benefits Treasury stock purchases Employee stock plans Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 Netcomings Other comprehensive loss Dividends and dividend equivalents: Common Common Stock Accumbed Reserve for ESOP Debt Shares Amount Preferred Meck Additional Paid-In Capital Retirement Comprehensive Income(Less) Treasury Stock 2,714,571 $ 4,009 S 1,077 5 63,852 $ (1.320) S (12,780) S (77,226) $ Retained Earnings 84,807 S Non-controlling Interest 631 5 Total Shareholders' Equity 63,050 10.508 96 10,604 (3,127) (3,127) (7.181) (255) (103,449) 52,089 (8,217) (7,181) (255) (8,217) (144) 3,234 3,090 4,863 (39) 6 30 33 74 104 (85) (85) 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 Treasury stock purchases Employee stock plans Preferred stock conversions ESOP debt impacts Preferred, net of tax benefits (164,866) 45,848 4,241 (6,989) (247) (77) (32) (14,625) 3,058 (6,989) (247) (14,625) 2,981 28 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 Net earnings 9,750 III 9,861 (117) (2) (119) Other comprehensive lass Dividends and dividend equivalents: Common Preferred, net of tax benefits Treasury stock purchases (81,439) Employee stock plans 21,655 Prefared stock conversions 4,580 (39) 199 6 45 (7,057) (265) (7,004) 1,469 33 (7,057) (265) (7.004) 1,668 ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2018 2,498,093 S 4,009 S 967 S 63,846 S (1,204) S (14,749) $ (99,217) S 98,641 89 134 (113) (113) S 590 $ 52.883 The Procter & Gamble Company Consolidated Statements of Cash Flows Amounts in millions; Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2018 2017 2016 $ 5,569 $ 7,102 $ 6,836 Depreciation and amortization OPERATING ACTIVITIES Net earnings Loss on early extinguishment of debt Share-based compensation expense 9,861 15,411 2,834 346 395 Deferred income taxes (1,844) Gain on sale of assets Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories (176) (5,490) (177) (188) Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures Proceeds from asset sales Acquisitions, net of cash acquired Purchases of short-term investments 1,385 2,000 431 14,867 12,753 (3,717) 269 (3,384) (109) (3,909) (4,843) Proceeds from sales and maturities of short-term investments 3,928 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 | | | 10,604 3,078 335 (815) (41) 450 35 116 1,285 204 184 15,435 (3,314) 432 (186) (2,815) 1,354 (996) - (143) Change in other investments TOTAL INVESTING ACTIVITIES FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt 27 (26) 93 (3,511) (5,689) (5,575) (7,310) (7,236) (7,436) (3,437) 2,727 (418) 5,072 3,603 3,916 Reductions of long-term debt () (2,873) (4,931) (2,213) Treasury stock purchases (7,004) (5,204) (4,004) Treasury stock from cash infused in Batteries divestiture (1,730) Impact of stock options and other 1,177 2,473 2,672 TOTAL FINANCING ACTIVITIES (14,375) (8,568) (9,213) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 19 (29) (381) CHANGE IN CASH AND CASH EQUIVALENTS (3,000) CASH AND CASH EQUIVALENTS, END OF YEAR 2,569 (1,533) 5,569 266 7,102 SUPPLEMENTAL DISCLOSURE Cash payments for interest 529 Cash payments for income taxes 2,830 518 3,714 569 3,730 Divestiture of Batteries business in exchange for shares of P&G stock (2) 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. - || - 4,213 11,360 (1) Includes early extinguishment of debt costs of $346 and $543 in 2018 and 2017, respectively. (2) Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). Question 14 0 / 3 points Total sales (a.k.a. Net Sales) for Procter and Gamble in 2018 were: ____. Round to nearest $ billion and use the $ sign...( hint is there are two digits...no commas) Answer: $10 Question 15 0 / 3 points Return on Sales for Procter and Gamble for 2018 was: (round to nearest whole number and use % symbol.) Hint.... Net income is the bottom line of the income statement. Answer: 21% Question 17 0 / 3 points Capital expenditures for Procter and Gamble in 2018 were. Round to nearest $billion and use the $ symbol. Do not show as a negative number. (i.e. if the detailed answer is something like $76,009,234,897, then you would place $76 in D2L) Answer: $37 Question 20 What were Days Inventory for Procter and Gamble in 2018? 25.9 days 34.1 days 74.3 days 100.3 days 50.5 days Question 23 0 / 2 points 0/3 points For Procter and Gamble, what was fixed charge coverage for 2018. Your answer should round to the nearest one decimal point and be in the form of....8.3x. In other words, use the x at the end of your answer. Answer: 27.1x Question 24 0 / 3 points For Procter and Gamble, what were days Receivable for 2018? Round to the nearest day and answer in the form of 54 days Answer: 26 Question 25 0/3 points For Procter and Gamble, what was the Gross Margin Percentage for 2018? Round to nearest one decimal point and use the % symbol. Answer: 48% Question 26 What was return on assets for Procter and Gamble for 2018? Round to nearest one decimal point and use the % symbol. Answer: 8% 0 / 3 points