informationalproforma2014


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934
 
 
Date of Report (Date of earliest event reported)
December 22, 2014

 
THE PROCTER & GAMBLE COMPANY
(Exact name of registrant as specified in its charter)
 
Ohio
 
1-434
 
31-0411980
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification Number)
 
One Procter & Gamble Plaza, Cincinnati, Ohio
 
45202
(Address of principal executive offices)
 
Zip Code
 
(513) 983-1100
 
45202
(Registrant's telephone number, including area code)
 
Zip Code
 
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 








ITEM 7.01    REGULATION FD DISCLOSURE

As discussed in the following paragraph, due to The Procter & Gamble Company's (the “Company”)  planned exit from the Batteries business, the Company is reporting the results of the Batteries business, including the previously reported impairment charge in the three months ended September 30, 2014, as discontinued operations.   This informational Form 8-K provides revised historical Segment and Consolidated earnings information for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, as well as for the fiscal year ended June 30, 2014, reflecting the above changes.  This informational Form 8-K in no way revises or restates the previously filed Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Shareholders' Equity or Consolidated Statements of Cash Flows for the Company and consolidated subsidiaries for any period.
 
Fiscal Year 2015 Changes
On November 13, 2014, the Company announced that it plans to divest the Duracell business via a split transaction with Berkshire Hathaway, in which it will exchange a recapitalized Duracell Company for Berkshire Hathaway’s shares of Procter & Gamble stock. The Company had previously announced an agreement to divest its controlling interest in a Chinese batteries venture, which represents the balance of the Company’s Batteries business. The Company expects to complete the Duracell transaction in the second half of calendar year 2015, pending necessary regulatory approvals. The Batteries business had historically been part of the Company’s Fabric Care and Home Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Batteries business will be presented as discontinued operations and, as such, will be excluded from both continuing operations and segment results. Additionally, the Batteries balance sheet positions as of December 31, 2014 will be presented as held for sale in the Consolidated Balance Sheet.
  
The above changes will be reflected in the consolidated financial statements and segment reporting beginning in the second quarter (October - December period) of fiscal year 2015, starting with the Form 10-Q that will be issued for the three and six month periods ending December 31, 2014.  Reporting changes for the above items will be reflected for all historical periods presented.   In advance of the Form 10-Q filing, this document provides revised sales and earnings information for the affected segments and Consolidated Earnings information for the three months ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013, as well as for the twelve months ended June 30, 2014.
 
This 8-K is furnished pursuant to Item 7.01 “Regulation FD Disclosure”.






THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Three Months Ended September 30, 2014
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
4,857

 
$
926

 
$
710

 
$
4,857

 
$
926

 
$
710

Grooming
 
1,941

 
621

 
466

 
1,941

 
621

 
466

Health Care
 
2,011

 
459

 
322

 
2,011

 
459

 
322

Fabric Care and Home Care
 
6,538

 
1,180

 
783

 
5,933

 
1,081

 
719

Baby, Feminine and Family Care
 
5,322

 
1,202

 
825

 
5,322

 
1,202

 
825

Corporate
 
123

 
(1,565
)
 
(1,103
)
 
122

 
(629
)
 
(202
)
Total Company
 
$
20,792

 
$
2,823

 
$
2,003

 
$
20,186

 
$
3,660

 
$
2,840

 
 
 
 
 
 
 
 
 
 
 
 
 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Three Months Ended June 30, 2014
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
4,629

 
$
661

 
$
498

 
$
4,629

 
$
661

 
$
498

Grooming
 
2,072

 
645

 
485

 
2,072

 
645

 
485

Health Care
 
1,813

 
290

 
174

 
1,813

 
290

 
174

Fabric Care and Home Care
 
6,262

 
1,019

 
647

 
5,702

 
971

 
618

Baby, Feminine and Family Care
 
5,203

 
1,064

 
725

 
5,203

 
1,064

 
725

Corporate
 
178

 
(452
)
 
82

 
177

 
(482
)
 
56

Total Company
 
$
20,157

 
$
3,227

 
$
2,611

 
$
19,596

 
$
3,149

 
$
2,556








THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Three Months Ended March 31, 2014
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
4,691

 
$
800

 
$
624

 
$
4,691

 
$
800

 
$
624

Grooming
 
1,863

 
613

 
463

 
1,863

 
613

 
463

Health Care
 
1,938

 
398

 
270

 
1,938

 
398

 
270

Fabric Care and Home Care
 
6,312

 
1,029

 
658

 
5,775

 
964

 
619

Baby, Feminine and Family Care
 
5,177

 
1,065

 
725

 
5,177

 
1,065

 
725

Corporate
 
197

 
(630
)
 
(137
)
 
197

 
(665
)
 
(170
)
Total Company
 
$
20,178

 
$
3,275

 
$
2,603

 
$
19,641

 
$
3,175

 
$
2,531

 
 
 
 
 
 
 
 
 
 
 
 
 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Three Months Ended December 31, 2013
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
5,284

 
$
1,160

 
$
927

 
$
5,284

 
$
1,160

 
$
927

Grooming
 
2,118

 
730

 
553

 
2,118

 
730

 
553

Health Care
 
2,153

 
525

 
374

 
2,153

 
525

 
374

Fabric Care and Home Care
 
6,820

 
1,334

 
877

 
6,022

 
1,149

 
751

Baby, Feminine and Family Care
 
5,323

 
1,099

 
765

 
5,323

 
1,099

 
765

Corporate
 
199

 
(446
)
 
(42
)
 
199

 
(481
)
 
(73
)
Total Company
 
$
21,897

 
$
4,402

 
$
3,454

 
$
21,099

 
$
4,182

 
$
3,297










THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Three Months Ended September 30, 2013
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
4,903

 
$
909

 
$
690

 
$
4,903

 
$
909

 
$
690

Grooming
 
1,956

 
601

 
453

 
1,956

 
601

 
453

Health Care
 
1,894

 
384

 
265

 
1,894

 
384

 
265

Fabric Care and Home Care
 
6,666

 
1,296

 
857

 
6,010

 
1,182

 
783

Baby, Feminine and Family Care
 
5,247

 
1,082

 
725

 
5,247

 
1,082

 
725

Corporate
 
164

 
(291
)
 
49

 
164

 
(327
)
 
18

Total Company
 
$
20,830

 
$
3,981

 
$
3,039

 
$
20,174

 
$
3,831

 
$
2,934

 
 
 
 
 
 
 
 
 
 
 
 
 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Segment Earnings Information
 
 
Twelve Months Ended June 30, 2014
 
 
As Reported
 
Revised
 
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
 
Net Sales
 
Earnings/(Loss) From Continuing Operations Before Income Taxes
 
 Net Earnings/(Loss)
From
Continuing
Operations
Beauty, Hair and Personal Care
 
$
19,507

 
$
3,530

 
$
2,739

 
$
19,507

 
$
3,530

 
$
2,739

Grooming
 
8,009

 
2,589

 
1,954

 
8,009

 
2,589

 
1,954

Health Care
 
7,798

 
1,597

 
1,083

 
7,798

 
1,597

 
1,083

Fabric Care and Home Care
 
26,060

 
4,678

 
3,039

 
23,509

 
4,266

 
2,771

Baby, Feminine and Family Care
 
20,950

 
4,310

 
2,940

 
20,950

 
4,310

 
2,940

Corporate
 
738

 
(1,819
)
 
(48
)
 
737

 
(1,955
)
 
(169
)
Total Company
 
$
83,062

 
$
14,885

 
$
11,707

 
$
80,510

 
$
14,337

 
$
11,318






THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Three Months Ended September 30, 2014
 
 
As Reported
 
Revised
NET SALES
 
$
20,792

 
$
20,186

    COST OF PRODUCTS SOLD
 
10,552

 
10,209

GROSS PROFIT
 
10,240

 
9,977

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
6,327

 
6,199

GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSET IMPAIRMENT CHARGES
 
973

 

OPERATING INCOME
 
2,940

 
3,778

    INTEREST EXPENSE
 
169

 
170

    INTEREST INCOME
 
31

 
31

    OTHER NON-OPERATING INCOME, NET
 
21

 
21

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
2,823

 
3,660

    INCOME TAXES
 
820

 
820

NET EARNINGS  FROM CONTINUING OPERATIONS
 
2,003

 
2,840

NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS
 
17

 
(820
)
NET EARNINGS
 
2,020

 
2,020

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
30

 
30

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
1,990

 
$
1,990

 
 
 
 
 
EFFECTIVE TAX RATE
 
29.0
%
 
22.4
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.70

 
$
1.01

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
(0.30
)
    BASIC NET EARNINGS PER COMMON SHARE
 
$
0.71

 
$
0.71

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.68

 
$
0.97

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
(0.28
)
    DILUTED NET EARNINGS PER COMMON SHARE
 
$
0.69

 
$
0.69

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
0.644

 
$
0.644

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,888.0

 
2,888.0

*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 AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Three Months Ended June 30, 2014
 
 
As Reported
 
Revised
NET SALES
 
$
20,157

 
$
19,596

    COST OF PRODUCTS SOLD
 
10,636

 
10,288

GROSS PROFIT
 
9,521

 
9,308

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
6,281

 
6,146

OPERATING INCOME
 
3,240

 
3,162

    INTEREST EXPENSE
 
178

 
179

    INTEREST INCOME
 
27

 
28

    OTHER NON-OPERATING INCOME, NET
 
138

 
138

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
3,227

 
3,149

    INCOME TAXES
 
616

 
593

NET EARNINGS  FROM CONTINUING OPERATIONS
 
2,611

 
2,556

NET EARNINGS FROM DISCONTINUED OPERATIONS
 
9

 
64

NET EARNINGS
 
2,620

 
2,620

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
41

 
41

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
2,579

 
$
2,579

 
 
 
 
 
EFFECTIVE TAX RATE
 
19.1
%
 
18.8
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.92

 
$
0.90

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$

 
$
0.02

    BASIC NET EARNINGS PER COMMON SHARE
 
$
0.92

 
$
0.92

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.89

 
$
0.87

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$

 
$
0.02

    DILUTED NET EARNINGS PER COMMON SHARE
 
$
0.89

 
$
0.89

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
0.643

 
$
0.643

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,891.9

 
2,891.9

*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 AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Three Months Ended March 31, 2014
 
 
As Reported
 
Revised
NET SALES
 
$
20,178

 
$
19,641

    COST OF PRODUCTS SOLD
 
10,366

 
10,040

GROSS PROFIT
 
9,812

 
9,601

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
6,407

 
6,295

OPERATING INCOME
 
3,405

 
3,306

    INTEREST EXPENSE
 
179

 
180

    INTEREST INCOME
 
29

 
29

    OTHER NON-OPERATING INCOME, NET
 
20

 
20

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
3,275

 
3,175

    INCOME TAXES
 
672

 
644

NET EARNINGS  FROM CONTINUING OPERATIONS
 
2,603

 
2,531

NET EARNINGS FROM DISCONTINUED OPERATIONS
 
33

 
105

NET EARNINGS
 
2,636

 
2,636

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
27

 
27

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
2,609

 
$
2,609

 
 
 
 
 
EFFECTIVE TAX RATE
 
20.5
%
 
20.3
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.93

 
$
0.90

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.04

    BASIC NET EARNINGS PER COMMON SHARE
 
$
0.94

 
$
0.94

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
0.89

 
$
0.87

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.03

    DILUTED NET EARNINGS PER COMMON SHARE
 
$
0.90

 
$
0.90

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
0.602

 
$
0.602

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,894.1

 
2,894.1

*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 AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Three Months Ended December 31, 2013
 
 
As Reported
 
Revised
NET SALES
 
$
21,897

 
$
21,099

    COST OF PRODUCTS SOLD
 
10,884

 
10,474

GROSS PROFIT
 
11,013

 
10,625

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
6,490

 
6,323

OPERATING INCOME
 
4,523

 
4,302

    INTEREST EXPENSE
 
187

 
185

    INTEREST INCOME
 
23

 
22

    OTHER NON-OPERATING INCOME, NET
 
43

 
43

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
4,402

 
4,182

    INCOME TAXES
 
948

 
885

NET EARNINGS  FROM CONTINUING OPERATIONS
 
3,454

 
3,297

NET EARNINGS FROM DISCONTINUED OPERATIONS
 
18

 
175

NET EARNINGS
 
3,472

 
3,472

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
44

 
44

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
3,428

 
$
3,428

 
 
 
 
 
EFFECTIVE TAX RATE
 
21.5
%
 
21.2
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
1.23

 
$
1.18

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.06

    BASIC NET EARNINGS PER COMMON SHARE
 
$
1.24

 
$
1.24

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
1.17

 
$
1.12

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.06

    DILUTED NET EARNINGS PER COMMON SHARE
 
$
1.18

 
$
1.18

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
0.602

 
$
0.602

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,908.5

 
2,908.5

*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 AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Three Months Ended September 30, 2013
 
 
As Reported
 
Revised
NET SALES
 
$
20,830

 
$
20,174

    COST OF PRODUCTS SOLD
 
10,574

 
10,208

GROSS PROFIT
 
10,256

 
9,966

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
6,136

 
5,996

OPERATING INCOME
 
4,120

 
3,970

    INTEREST EXPENSE
 
165

 
166

    INTEREST INCOME
 
21

 
22

    OTHER NON-OPERATING INCOME, NET
 
5

 
5

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
3,981

 
3,831

    INCOME TAXES
 
942

 
897

NET EARNINGS  FROM CONTINUING OPERATIONS
 
3,039

 
2,934

NET EARNINGS FROM DISCONTINUED OPERATIONS
 
18

 
123

NET EARNINGS
 
3,057

 
3,057

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
30

 
30

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
3,027

 
$
3,027

 
 
 
 
 
EFFECTIVE TAX RATE
 
23.7
%
 
23.4
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
1.08

 
$
1.04

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.05

    BASIC NET EARNINGS PER COMMON SHARE
 
$
1.09

 
$
1.09

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
1.03

 
$
1.00

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$
0.01

 
$
0.04

    DILUTED NET EARNINGS PER COMMON SHARE
 
$
1.04

 
$
1.04

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
0.602

 
$
0.602

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,924.3

 
2,924.3

*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 AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
 
 
  Twelve Months Ended June 30, 2014
 
 
As Reported
 
Revised
NET SALES
 
$
83,062

 
$
80,510

    COST OF PRODUCTS SOLD
 
42,460

 
41,010

GROSS PROFIT
 
40,602

 
39,500

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
 
25,314

 
24,760

OPERATING INCOME
 
15,288

 
14,740

    INTEREST EXPENSE
 
709

 
710

    INTEREST INCOME
 
100

 
101

    OTHER NON-OPERATING INCOME, NET
 
206

 
206

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
 
14,885

 
14,337

    INCOME TAXES
 
3,178

 
3,019

NET EARNINGS  FROM CONTINUING OPERATIONS
 
11,707

 
11,318

NET EARNINGS FROM DISCONTINUED OPERATIONS
 
78

 
467

NET EARNINGS
 
11,785

 
11,785

    LESS:  NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
 
142

 
142

NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
 
$
11,643

 
$
11,643

 
 
 
 
 
EFFECTIVE TAX RATE
 
21.4
%
 
21.1
%
 
 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
4.16

 
$
4.03

    EARNINGS FROM DISCONTINUED OPERATIONS
 
$
0.03

 
$
0.16

    BASIC NET EARNINGS PER COMMON SHARE
 
$
4.19

 
$
4.19

DILUTED NET EARNINGS PER COMMON SHARE*:
 
 
 
 
    EARNINGS FROM CONTINUING OPERATIONS
 
$
3.98

 
$
3.86

    EARNINGS  FROM DISCONTINUED OPERATIONS
 
$
0.03

 
$
0.15

    DILUTED NET EARNINGS PER COMMON SHARE
 
$
4.01

 
$
4.01

 
 
 
 
 
DIVIDENDS PER COMMON SHARE
 
$
2.448

 
$
2.448

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
 
2,904.7

 
2,904.7

*Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble.

















Supplemental Core Earnings per Share Information

Core earnings per share is a measure of the Company's diluted net earnings per share from continuing operations excluding certain items that are not judged to be part of the Company's sustainable results or trends. This includes charges in fiscal years 2015 and 2014 for incremental restructuring due to increased focus on productivity and cost savings, charges in fiscal years 2015 and 2014 for the balance sheet impacts from foreign exchange policy changes and the devaluations of the official foreign currency exchange rate in Venezuela, and charges in fiscal year 2014 related to pending European legal matters. We do not view these items to be part of our sustainable results. We believe the Core EPS measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on year earnings per share growth. Core EPS is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation. The table below provides a reconciliation of reported diluted net earnings per share from continuing operations to Core EPS:
 
JAS 13
 
OND 13
 
JFM 14
 
AMJ 14
 
FY 14
 
JAS 14
Diluted Net Earnings Per Share from Continuing Operations
$
1.00

 
$
1.12

 
$
0.87

 
$
0.87

 
$
3.86

 
$
0.97

Incremental Restructuring1
0.02

 
0.03

 
0.04

 
0.04

 
0.12

 
0.03

Venezuela Balance Sheet Remeasurement and Devaluation Impacts

 

 
0.10

 

 
0.09

 
0.04

Charges for European Legal Matters

 

 

 
0.02

 
0.02

 

Goodwill and Intangible Impairment2

 

 

 

 

 

Rounding
(0.01
)
 

 
(0.01
)
 

 

 

CORE EPS
$
1.01

 
$
1.15

 
$
1.00

 
$
0.93

 
$
4.09

 
$
1.04

1 Excludes incremental restructuring for the Batteries business, which is included in discontinued operations.
2 Excludes a charge in JAS 14 for Batteries goodwill and indefinite-lived intangible asset impairment, which is reflected in discontinued operations.
























SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 THE PROCTER & GAMBLE COMPANY
 
  BY:  /s/ Susan S. Whaley
              Susan S. Whaley
              Assistant Secretary
December 22, 2014