The Procter & Gamble Company

Consolidated Statements of Earnings

 
Amounts in millions except per 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
Goodwill and indefinite lived intangibles impairment charges — ### ###
Venezuela deconsolidation — ### 2,028
OPERATING INCOME 13,955 13,441 11,049
Interest expense 465 579 626
Interest income 171 182 149
Other non-operating income, 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 FROM DISCONTINUED OPERATIONS 5,217 577 (1,143)
NET EARNINGS 15,411 10,604 7,144
Less: Net earnings attributable to noncontrolling interests 85 96 108
NET EARNINGS ATTRIBUTABLE 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 from discontinued operations 2.01 0.21 (0.42)
BASIC NET EARNINGS PER COMMON SHARE $ 5.80 $ 3.80 $ 2.50
DILUTED NET EARNINGS PER COMMON SHARE: (1)
Earnings from continuing operations $ 3.69 $ 3.49 $ 2.84
Earnings from discontinued operations 1.90 0.20 (0.40)
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.
The Procter & Gamble Company
Consolidated Statements of Comprehensive Income

Amounts in millions; Years ended June 30 2017 2016 2015

NET EARNINGS $ 15,411 $ 10,604 $ 7,144
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX
Financial statement translation 239 (1,679) (7,220)
Unrealized gains/(losses) on hedges (net of $(186), $5 and $739 tax, respectively) (306) 1 1,234
Unrealized gains/(losses) on investment securities (net of $(6), $7 and $0 tax, respectively) (59) 28 24
Unrealized gains/(losses) on defined benefit retirement plans (net of $551, $(621) and $328 tax, respectively) 1,401 (1,477) 844
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX 1,275 (3,127) (5,118)
TOTAL COMPREHENSIVE INCOME 16,686 7,477 2,026
Less: Total comprehensive income attributable to noncontrolling interests 85 96 108
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 16,601 $ 7,381 $ 1,918
The Procter & Gamble Company
Consolidated Balance Sheets

Amounts in millions; As of June 30 2017   2016

Assets  
CURRENT ASSETS  
Cash and cash equivalents $ 5,569   $ 7,102
Available-for-sale 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 2,787   2,965
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 Sharesholders' Equity  

CURRENT LIABILITIES  
Accounts payable $ 9,632   $ 9,325
Accrued and other liabilities 7,024   7,449
Current liabilities held for sale — 2,343
Debt due within one year 13,554   11,653
TOTAL CURRENT LIABILITIES 30,210   30,770
LONG-TERM DEBT 18,038   18,945
DEFERRED INCOME TAXES 8,126   9,113
OTHER NONCURRENT LIABILITIES 8,254   10,325
TOTAL LIABILITIES 64,628   69,153
SHAREHOLDERS' EQUITY  
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 1,006   1,038
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   4,009
Additional paid-in capital 63,641   63,714
Reserve for ESOP debt retirement (1,249)   (1,290)
Accumulated other comprehensive income/(loss) (14,632)   (15,907)
Treasury stock, at cost (shares held: 2017 -1,455.9, 2016 - 1,341.2) (93,715)   (82,176)
Retained earnings 96,124   87,953
Noncontrolling interest 594   642
TOTAL SHAREHOLDERS' EQUITY 55,778   57,983
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 120,406   $ 127,136
The Procter & Gamble Company
Consolidated Statements of Shareholders' Equity

Accumulated Other
Common Shares Reserve for ESOP Debt Comprehensive
Dollars in millions; shares in thousands Outstanding Common Stock Preferred Stock Additional Paid-In Capital Retirement Income/(Loss) Treasury Stock Retained Earnings Non-controlling Interest Total

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 income/(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 income/(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 74 104
Noncontrolling 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 income/(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).
The Procter & Gamble Company
Consolidated Statements of Cash Flows

Amounts in millions; Years ended June 30 2017   2016   2015

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 indefinite lived intangibles 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 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 (26)   93   (163)
TOTAL INVESTING ACTIVITIES (5,689)   (5,575)   (2,890)
FINANCING ACTIVITIES    
Dividends to shareholders (7,236)   (7,436)   (7,287)
Change in short-term debt 2,727   (418)   (2,580)
Additions to long-term debt 3,603   3,916   2,138
Reductions of long-term debt (4,931) (1) (2,213)   (3,512)
Treasury stock purchases (5,204)   (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 payments 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).