The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; Years ended June 30 2020   2019   2018
NET SALES $ 70,950 $ 67,684 $ 66,832
Cost of products sold 35,250 34,768 34,432
Selling, general and administrative expense 19,994 19,084 19,037
Goodwill and indefinite-lived intangibles impairment charges - 8,345 -
OPERATING INCOME 15,706 5,487 13,363
Interest expense (465) (509) (506)
Interest income 155 220 247
Other non-operating income, net 438 871 222
EARNINGS BEFORE INCOME TAXES 15,834 6,069 13,326
Income taxes 2,731 2,103 3,465
NET EARNINGS 13,103 3,966 9,861
Less: Net earnings attributable to noncontrolling interests 76 69 111
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE (1) $ 13,027 $ 3,897 $ 9,750

NET EARNINGS PER COMMON SHARE: (2)

Basic $ 5.13 $ 1.45 $ 3.75
Diluted $ 4.96 $ 1.43 $ 3.67

Net earnings attributable to Procter & Gamble in fiscal 2019 was negatively impacted by the impairment charges of $8.3 billion related to Shave Care
(1)      

goodwill and Gillette indefinite-lived intangible assets.

(2)      
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 2020 2019 2018

NET EARNINGS $ 13,103 $ 3,966 $ 9,861
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX
Foreign currency translation (net of $59, $78 and $(279) tax, respectively) (1,083) (213) (305)
Unrealized gains/(losses) on investment securities (net of $(1), $0 and $0 tax, respectively) (12) 184 (148)
Unrealized gains/(losses) on defined benefit retirement plans (net of $(42), $22 and $68 tax, respectively) (150) 169 334
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX (1,245) 140 (119)
TOTAL COMPREHENSIVE INCOME 11,858 4,106 9,742
Less: Total comprehensive income attributable to noncontrolling interests 60 70 109
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 11,798 $ 4,036 $ 9,633
The Procter & Gamble Company
Consolidated Balance Sheets

Amounts in millions except stated values; As of June 30 2020   2019

ASSETS  
CURRENT ASSETS  
Cash and cash equivalents $ 16,181   $ 4,239
Available-for-sale investment securities — 6,048
Accounts receivable 4,178   4,951
Inventories  
Materials and supplies 1,414   1,289
Work in process 674   612
Finished goods 3,410   3,116
Total inventories 5,498   5,017
Prepaid expenses and other current assets 2,130   2,218
TOTAL CURRENT ASSETS 27,987   22,473
PROPERTY, PLANT AND EQUIPMENT, NET 20,692   21,271
GOODWILL 39,901   40,273
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 23,792   24,215
OTHER NONCURRENT ASSETS 8,328   6,863
TOTAL ASSETS $ 120,700   $ 115,095

LIABILITIES AND SHAREHOLDERS' EQUITY  

CURRENT LIABILITIES  
Accounts payable $ 12,071   $ 11,260
Accrued and other liabilities 9,722   9,054
Debt due within one year 11,183   9,697
TOTAL CURRENT LIABILITIES 32,976   30,011
LONG-TERM DEBT 23,537   20,395
DEFERRED INCOME TAXES 6,199   6,899
OTHER NONCURRENT LIABILITIES 11,110   10,211
TOTAL LIABILITIES 73,822   67,516
SHAREHOLDERS' EQUITY  
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 897   928
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:
2020 - 4,009.2, 2019 - 4,009.2) 4,009   4,009
Additional paid-in capital 64,194   63,827
Reserve for ESOP debt retirement (1,080)   (1,146)
Accumulated other comprehensive income/(loss) (16,165)   (14,936)
Treasury stock, at cost (shares held: 2020 - 1,529.5, 2019 -1,504.5) (105,573)   (100,406)
Retained earnings 100,239   94,918
Noncontrolling interest 357   385
TOTAL SHAREHOLDERS' EQUITY 46,878   47,579
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 120,700   $ 115,095
The Procter & Gamble Company
Consolidated Statements of Shareholders' Equity

Common Stock
Accumulated Other
Reserve for ESOP Debt Comprehensive
Dollars in millions except per share amounts; shares in thousands Shares Amount Preferred Stock Additional Paid-In Capital Retirement Income/(Loss) Treasury Stock Retained Earnings Non-controlling Interest Total Shareholders' Equity
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 9,750 111 9,861
Other comprehensive income/(loss) (117) (2) (119)
Dividends and dividend equivalents ($2.7860 per share):
Common (7,057) (7,057)
Preferred, net of tax benefits (265) (265)
Treasury stock purchases (81,439) (7,004) (7,004)
Employee stock plans 21,655 199 1,469 1,668
Preferred stock conversions 4,580 (39) 6 33 -
ESOP debt impacts 45 89 134
Noncontrolling interest, net (113) (113)
BALANCE JUNE 30, 2018 2,498,093 $ 4,009 $ 967 $ 63,846 $ (1,204) $ (14,749) $ (99,217) $ 98,641 $ 590 $ 52,883
Impact of adoption of new accounting standards (326) (200) (27) (553)
Net earnings 3,897 69 3,966
Other comprehensive income/(loss) 139 1 140
Dividends and dividend equivalents ($2.8975 per share):
Common (7,256) (7,256)
Preferred, net of tax benefits (263) (263)
Treasury stock purchases (53,714) (5,003) (5,003)
Employee stock plans 55,734 93 3,781 3,874
Preferred stock conversions 4,638 (39) 6 33 -
ESOP debt impacts 58 99 157
Noncontrolling interest, net (118) (248) (366)
BALANCE JUNE 30, 2019 2,504,751 $ 4,009 $ 928 $ 63,827 $ (1,146) $ (14,936) $ (100,406) $ 94,918 $ 385 $ 47,579
Net earnings 13,027 76 13,103
Other comprehensive income/(loss) (1,229) (16) (1,245)
Dividends and dividend equivalents ($3.0284 per share):
Common (7,551) (7,551)
Preferred, net of tax benefits (263) (263)
Treasury stock purchases (61,346) (7,405) (7,405)
Employee stock plans 32,603 362 2,212 2,574
Preferred stock conversions 3,738 (31) 5 26 -
ESOP debt impacts 66 108 174
Noncontrolling interest, net (88) (88)
BALANCE JUNE 30, 2020 2,479,746 $ 4,009 $ 897 $ 64,194 $ (1,080) $ (16,165) $ (105,573) $ 100,239 $ 357 $ 46,878
The Procter & Gamble Company
Consolidated Statements of Cash Flows

Amounts in millions; Years ended June 30 2020   2019   2018

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR $ 4,239 $ 2,569 $ 5,569
OPERATING ACTIVITIES    
Net earnings 13,103   3,966   9,861
Depreciation and amortization 3,013 2,824 2,834
Loss on early extinguishment of debt -   -   ###
Share-based compensation expense 558 515 395
Deferred income taxes (596)    (411)    (1,844)
Loss/(gain) on sale of assets 7 (678) (176)
Goodwill and indefinite-lived intangible impairment charges ###
  ###
  -
Change in accounts receivable 634 (276) (177)
Change in inventories (637)    (239)    (188)
Change in accounts payable, accrued and other liabilities 1,923 1,856 1,385
Change in other operating assets and liabilities (710)    (973)    2,000
Other 108 313 431
TOTAL OPERATING ACTIVITIES 17,403   15,242   14,867
INVESTING ACTIVITIES    
Capital expenditures (3,073)    (3,347)    (3,717)
Proceeds from asset sales 30 394 269
Acquisitions, net of cash acquired (58)   (3,945)   (109)
Purchases of short-term investments - (158) (3,909)
Proceeds from sales and maturities of investment securities 6,151   3,628   3,928
Change in other investments (5) (62) 27
TOTAL INVESTING ACTIVITIES 3,045    (3,490)    (3,511)
FINANCING ACTIVITIES
Dividends to shareholders (7,789)    (7,498)    (7,310)
Increases/(reductions) in short-term debt 2,345 (2,215) (3,437)
Additions to long-term debt 4,951   2,367   5,072
Reductions of long-term debt (1) (2,447)   (969)   (2,873)
Treasury stock purchases (7,405)   (5,003)   (7,004)
Impact of stock options and other 1,978    3,324    1,177
TOTAL FINANCING ACTIVITIES (8,367) (9,994) (14,375)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND
RESTRICTED CASH (139)    (88)    19
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 11,942 1,670 (3,000)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR $ 16,181   $ 4,239   $ 2,569

SUPPLEMENTAL DISCLOSURE    
Cash payments for interest $ 434 $ 497 $ 529
Cash payments for income taxes 3,550   3,064   2,830
Assets acquired through non-cash capital leases are immaterial for all periods.
(1)
Includes early extinguishment of debt costs of $346 in 2018.