Consolidated Statements of Earnings
Amounts in millions except per share amounts; Years ended June 30 2021 2020 2019
NET SALES $ 76,118 $ 70,950 $ 67,684 Cost of products sold 37,108 35,250 34,768 Selling, general and administrative expense 21,024 19,994 19,084 Goodwill and indefinite-lived intangible impairment charges — — 8,345
OPERATING INCOME 17,986 15,706 5,487
Interest expense (502) (465) (509) Interest income 45 155 220 Other non-operating income, net 86 438 871
EARNINGS BEFORE INCOME TAXES 17,615 15,834 6,069 Income taxes 3,263 2,731 2,103
NET EARNINGS 14,352 13,103 3,966
Less: Net earnings attributable to noncontrolling interests 46 76 69
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE $ 14,306 $ 13,027 $ 3,897
NET EARNINGS PER COMMON SHARE: Basic $ 5.69 $ 5.13 $ 1.45 Diluted $ 5.50 $ 4.96 $ 1.43
Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
(1)
(1)
See accompanying Notes to Consolidated Financial Statements.
The Procter & Gamble Company 39
Consolidated Statements of Comprehensive Income
Amounts in millions; Years ended June 30 2021 2020 2019
NET EARNINGS $ 14,352 $ 13,103 $ 3,966 OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX
Foreign currency translation (net of tax of $(266), $59 and $78, respectively) 1,023 (1,083) (213) Unrealized gains/(losses) on investment securities (net of tax of $5, $(1) and $0, respectively) 16 (12) 184 Unrealized gains/(losses) on defined benefit retirement plans (net of tax of $445, $(42) and $22, respectively) 1,386 (150) 169
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX 2,425 (1,245) 140
TOTAL COMPREHENSIVE INCOME 16,777 11,858 4,106
Less: Total comprehensive income attributable to noncontrolling interests 50 60 70
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 16,727 $ 11,798 $ 4,036
See accompanying Notes to Consolidated Financial Statements.
40 The Procter & Gamble Company
Consolidated Balance Sheets
Amounts in millions except stated values; As of June 30 2021 2020
Assets CURRENT ASSETS
Cash and cash equivalents $ 10,288 $ 16,181 Accounts receivable 4,725 4,178 INVENTORIES Materials and supplies 1,645 1,414 Work in process 719 674 Finished goods 3,619 3,410
Total inventories 5,983 5,498 Prepaid expenses and other current assets 2,095 2,130
TOTAL CURRENT ASSETS 23,091 27,987
PROPERTY, PLANT AND EQUIPMENT, NET 21,686 20,692 GOODWILL 40,924 39,901 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 23,642 23,792 OTHER NONCURRENT ASSETS 9,964 8,328
TOTAL ASSETS $ 119,307 $ 120,700
Liabilities and Shareholders’ Equity CURRENT LIABILITIES
Accounts payable $ 13,720 $ 12,071 Accrued and other liabilities 10,523 9,722 Debt due within one year 8,889 11,183
TOTAL CURRENT LIABILITIES 33,132 32,976
LONG-TERM DEBT 23,099 23,537 DEFERRED INCOME TAXES 6,153 6,199 OTHER NONCURRENT LIABILITIES 10,269 11,110
TOTAL LIABILITIES 72,653 73,822 SHAREHOLDERS’ EQUITY
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 870 897 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: 2021 – 4,009.2, 2020 – 4,009.2) 4,009 4,009 Additional paid-in capital 64,848 64,194 Reserve for ESOP debt retirement (1,006) (1,080) Accumulated other comprehensive loss (13,744) (16,165) Treasury stock, at cost (shares held: 2021 – 1,579.5, 2020 – 1,529.5) (114,973) (105,573) Retained earnings 106,374 100,239 Noncontrolling interest 276 357
TOTAL SHAREHOLDERS’ EQUITY 46,654 46,878
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 119,307 $ 120,700
See accompanying Notes to Consolidated Financial Statements.
The Procter & Gamble Company 41
Consolidated Statements of Shareholders’ Equity
Dollars in millions except per share amounts; shares in thousands
Common Stock Preferred
Stock Additional
Paid-In Capital
Reserve for ESOP Debt Retirement
Accumulated Other
Comp-rehensive Income/(Loss) Treasury Stock
Retained Earnings
Non-controlling Interest
Total Share- holders’ EquityShares Amount
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 (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 (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
Net earnings 14,306 46 14,352 Other comprehensive income/(loss)
2,421 4 2,425
Dividends and dividend equivalents ($3.2419 per share): Common (8,020) (8,020) Preferred (271) (271) Treasury stock purchases (81,343) (11,009) (11,009) Employee stock plans 28,001 650 1,586 2,236 Preferred stock conversions 3,302 (27) 4 23 — ESOP debt impacts 74 120 194 Noncontrolling interest, net (131) (131)
BALANCE JUNE 30, 2021 2,429,706 $4,009 $870 $64,848 ($1,006) ($13,744) ($114,973) $106,374 $276 $46,654
See accompanying Notes to Consolidated Financial Statements.
42 The Procter & Gamble Company
Consolidated Statements of Cash Flows
Amounts in millions; Years ended June 30 2021 2020 2019 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR $ 16,181 $ 4,239 $ 2,569 OPERATING ACTIVITIES
Net earnings 14,352 13,103 3,966 Depreciation and amortization 2,735 3,013 2,824 Loss on early extinguishment of debt 512 — — Share-based compensation expense 540 558 515 Deferred income taxes (258) (596) (411) Loss/(gain) on sale of assets (16) 7 (678) Goodwill and indefinite-lived intangible impairment charges — — 8,345 Change in accounts receivable (342) 634 (276) Change in inventories (309) (637) (239) Change in accounts payable, accrued and other liabilities 1,391 1,923 1,856 Change in other operating assets and liabilities (369) (710) (973) Other 135 108 313
TOTAL OPERATING ACTIVITIES 18,371 17,403 15,242 INVESTING ACTIVITIES
Capital expenditures (2,787) (3,073) (3,347) Proceeds from asset sales 42 30 394 Acquisitions, net of cash acquired (34) (58) (3,945) Purchases of investment securities (55) — (158) Proceeds from sales and maturities of investment securities — 6,151 3,628 Change in other investments — (5) (62)
TOTAL INVESTING ACTIVITIES (2,834) 3,045 (3,490) FINANCING ACTIVITIES
Dividends to shareholders (8,263) (7,789) (7,498) Increases/(reductions) in short-term debt (3,333) 2,345 (2,215) Additions to long-term debt 4,417 4,951 2,367 Reductions of long-term debt (4,987) (2,447) (969) Treasury stock purchases (11,009) (7,405) (5,003) Impact of stock options and other 1,644 1,978 3,324
TOTAL FINANCING ACTIVITIES (21,531) (8,367) (9,994) EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH 101 (139) (88)
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (5,893) 11,942 1,670
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR $ 10,288 $ 16,181 $ 4,239