The Procter & Gamble Company (P&G)

Chapter 15

What is the par or stated value of P&Gs preferred stock?

What is the par or stated value of P&Gs common stock?

What percentage of P&Gs authorized common stock was issued at June 30,2014?

How many shares of common stock were outstanding at June 30,2014 and June 30,2013?

What was the dollar amount effect of the cash dividends on P&Gs stockholders equity?

What is P&Gs return on common stockholders equity for 2014 and 2013?

What is P&Gs payout ratio for 2014 and 2013?

What was the market price range (high/low) of P&Gs common stock during the quarter ended June 30,2014?

Consolidated Statements of Earnings See accompanying Notes to Consolidated Financial Statements. Amounts in millions except per share amounts; Years ended June 30 2014 2013 2012 NET SALES $ 83,062 $ 82,581 $ 82,006 Cost of products sold 42,460 41,391 41,411 Selling, general and administrative expense 25,314 26,552 25,984 Goodwill and indefinite-lived intangible asset impairment charges 308 1,576 OPERATING INCOME 15,288 14,330 13,035 Interest expense 709 667 769 Interest income 100 87 77 Other non-operating income, net 206 942 185 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 14,885 14,692 12,528 Income taxes on continuing operations 3,178 3,391 3,378 NET EARNINGS FROM CONTINUING OPERATIONS 11,707 11,301 9,150 NET EARNINGS FROM DISCONTINUED OPERATIONS 78 101 1,754 NET EARNINGS 11,785 11,402 10,904 Less: Net earnings attributable to noncontrolling interests 142 90 148 NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE $ 11,643 $ 11,312 $ 10,756 BASIC NET EARNINGS PER COMMON SHARE (1) : Earnings from continuing operations $ 4.16 $ 4.00 $ 3.18 Earnings from discontinued operations 0.03 0.04 0.64 BASIC NET EARNINGS PER COMMON SHARE 4.19 4.04 3.82 DILUTED NET EARNINGS PER COMMON SHARE (1) : Earnings from continuing operations $ 3.98 $ 3.83 $ 3.06

Consolidated Statements of Comprehensive Income Amounts in millions; Years ended June 30 2014 2013 2012 NET EARNINGS $ 11,785 $ 11,402 $ 10,904 OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation 1,044 710 (5,990) Unrealized gains/(losses) on hedges (net of $209, $92 and $441 tax, respectively) (347) 144 724 Unrealized gains/(losses) on investment securities (net of $4, $5 and $3 tax, respectively) 9 (24) (3) Defined benefit retirement plans (net of $356, $637 and $993 tax, respectively) (869) 1,004 (2,010) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX (163) 1,834 (7,279) TOTAL COMPREHENSIVE INCOME 11,622 13,236 3,625 Less: Total comprehensive income attributable to noncontrolling interests 150 94 124 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 11,472 $ 13,142 $ 3,501

Consolidated Balance Sheets See accompanying Notes to Consolidated Financial Statements. Amounts in millions; June 30 Assets 2014 2013 CURRENT ASSETS Cash and cash equivalents $ 8,558 $ 5,947 Available-for-sale investment securities 2,128 Accounts receivable 6,386 6,508 INVENTORIES Materials and supplies 1,742 1,704 Work in process 684 722 Finished goods 4,333 4,483 Total inventories 6,759 6,909 Deferred income taxes 1,092 948 Prepaid expenses and other current assets 3,845 3,678 Assets held for sale 2,849 TOTAL CURRENT ASSETS 31,617 23,990 PROPERTY, PLANT AND EQUIPMENT, NET 22,304 21,666 GOODWILL 53,704 55,188 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 30,843 31,572 OTHER NONCURRENT ASSETS 5,798 6,847 TOTAL ASSETS $ 144,266 $ 139,263 Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 8,461 $ 8,777 Accrued and other liabilities 8,999 8,828 Liabilities held for sale 660 Debt due within one year 15,606 12,432 TOTAL CURRENT LIABILITIES 33,726 30,037 LONG-TERM DEBT 19,811 19,111 DEFERRED INCOME TAXES 10,218 10,827 OTHER NONCURRENT LIABILITIES 10,535 10,579 TOTAL LIABILITIES 74,290 70,554 SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 1,111 1,137 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: 2014 - 4009.2, 2013 - 4,009.2) 4,009 4,009 Additional paid-in capital 63,911 63,538 Reserve for ESOP debt retirement (1,340) (1,352) Accumulated other comprehensive income/(loss) (7,662) (7,499) Treasury stock, at cost (shares held: 2014 - 1,298.4, 2013 - 1,266.9) (75,805) (71,966) Retained earnings 84,990 80,197 Noncontrolling interest 762 645 TOTAL SHAREHOLDERS' EQUITY 69,976 68,709 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 144,266 $ 139,263

Consolidated Statements of Shareholders' Equity See accompanying Notes to Consolidated Financial Statements. Dollars in millions/Shares in thousands Common Shares Outstanding Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/ (Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total BALANCE JUNE 30, 2011 2,765,737 $ 4,008 $ 1,234 $ 62,405 $ (1,357) $ (2,054) $ (67,278) $ 70,682 $ 361 $ 68,001 Net earnings 10,756 148 10,904 Other comprehensive loss (7,279) (7,279) Dividends to shareholders: Common (5,883) (5,883) Preferred, net of tax benefits (256) (256) Treasury purchases (61,826) (4,024) (4,024) Employee plan issuances 39,546 550 1,665 2,215 Preferred stock conversions 4,576 (39) 6 33 ESOP debt impacts 50 50 Noncontrolling interest, net 220 87 307 BALANCE JUNE 30, 2012 2,748,033 4,008 1,195 63,181 (1,357) (9,333) (69,604) 75,349 596 64,035 Net earnings 11,312 90 11,402 Other comprehensive income 1,834 1,834 Dividends to shareholders: Common (6,275) (6,275) Preferred, net of tax benefits (244) (244) Treasury purchases (84,234) (5,986) (5,986) Employee plan issuances 70,923 1 352 3,573 3,926 Preferred stock conversions 7,605 (58) 7 51 ESOP debt impacts 5 55 60 Noncontrolling interest, net (2) (41) (43) BALANCE JUNE 30, 2013 2,742,327 4,009 1,137 63,538 (1,352) (7,499) (71,966) 80,197 645 68,709 Net earnings 11,643 142 11,785 Other comprehensive loss (163) (163) Dividends to shareholders: Common (6,658) (6,658) Preferred, net of tax benefits (253) (253) Treasury purchases (74,987) (6,005) (6,005) Employee plan issuances 40,288 364 2,144 2,508 Preferred stock conversions 3,178 (26) 4 22 ESOP debt impacts 12 61 73 Noncontrolling interest, net 5 (25) (20) BALANCE JUNE 30, 2014 2,710,806 $ 4,009 $ 1,111 $ 63,911 $ (1,340) $ (7,662) $ (75,805) $84,990 $ 762 $69,976

Consolidated Statements of Cash Flows See accompanying Notes to Consolidated Financial Statements. Amounts in millions; Years ended June 30 2014 2013 2012 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR $ 5,947 $ 4,436 $ 2,768 OPERATING ACTIVITIES Net earnings 11,785 11,402 10,904 Depreciation and amortization 3,141 2,982 3,204 Share-based compensation expense 360 346 377 Deferred income taxes (44) (307) (65) Gain on sale and purchase of businesses (154) (916) (2,106) Goodwill and indefinite-lived intangible asset impairment charges 308 1,576 Change in accounts receivable 87 (415) (427) Change in inventories 8 (225) 77 Change in accounts payable, accrued and other liabilities 1 1,253 (22) Change in other operating assets and liabilities (1,557) 68 (444) Other 331 377 210 TOTAL OPERATING ACTIVITIES 13,958 14,873 13,284 INVESTING ACTIVITIES Capital expenditures (3,848) (4,008) (3,964) Proceeds from asset sales 570 584 2,893 Acquisitions, net of cash acquired (24) (1,145) (134) Purchases of available-for-sale investment securities (568) (1,605) Proceeds from sales of available-for-sale investment securities 24 Change in other investments (261) (121) 112 TOTAL INVESTING ACTIVITIES (4,107) (6,295) (1,093) FINANCING ACTIVITIES Dividends to shareholders (6,911) (6,519) (6,139) Change in short-term debt 3,304 3,406 (3,412) Additions to long-term debt 4,334 2,331 3,985 Reductions of long-term debt (4,095) (3,752) (2,549) Treasury stock purchases (6,005) (5,986) (4,024) Impact of stock options and other 2,094 3,449 1,729 TOTAL FINANCING ACTIVITIES (7,279) (7,071) (10,410) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 39 4 (113) CHANGE IN CASH AND CASH EQUIVALENTS 2,611 1,511 1,668 CASH AND CASH EQUIVALENTS, END OF YEAR $ 8,558 $ 5,947 $ 4,436 SUPPLEMENTAL DISCLOSURE Cash payments for: Interest $ 686 $ 683 $ 740 Income taxes 3,320 3,780 4,348 Assets acquired through non-cash capital leases are immaterial for all periods.