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Document and Entity Information Document
3 Months Ended
Sep. 30, 2014
Document and Entity Information [Abstract] '
Entity Registrant Name 'PROCTER & GAMBLE CO
Entity Central Index Key '0000080424
Current Fiscal Year End Date '--06-30
Entity Filer Category 'Large Accelerated Filer
Document Type '10-Q
Document Period End Date Sep 30, 2014
Document Fiscal Year Focus '2015
Document Fiscal Period Focus 'Q1
Amendment Flag 'false
Trading Symbol 'PG
Entity Well Known Seasoned Issuer 'Yes
Entity Current Reporting Status 'Yes
Entity Voluntary Files 'No
Entity Common Stock, Shares Outstanding 2,702,118,733
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CONSOLIDATED STATEMENTS OF EARNINGS (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Income Statement [Abstract] ' '
NET SALES $ 20,792 $ 20,830
Cost of products sold 10,552 10,574
Selling, general and administrative expense 6,327 6,136
Goodwill and Intangible Asset Impairment 973 0
OPERATING INCOME 2,940 4,120
Interest expense 169 165
Interest income 31 21
Other non-operating income, net 21 5
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 2,823 3,981
Income taxes on continuing operations 820 942
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest 2,003 3,039
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent 17 18
NET EARNINGS 2,020 3,057
Less: Net earnings attributable to noncontrolling interests 30 30
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE $ 1,990 $ 3,027
Basic Net Earnings per Common Share ' '
Income (Loss) from Continuing Operations, Per Basic Share $ 0.7 [1],[2] $ 1.08 [1],[2]
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share $ 0.01 [1],[2] $ 0.01 [1],[2]
Earnings Per Share, Basic $ 0.71 [1],[2] $ 1.09 [1],[2]
Diluted Net Earnings per Common Share ' '
Income (Loss) from Continuing Operations, Per Diluted Share $ 0.68 [1],[2] $ 1.03 [1],[2]
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share $ 0.01 [1],[2] $ 0.01 [1],[2]
Earnings Per Share, Diluted $ 0.69 [1],[2] $ 1.04 [1],[2]
Dividends per common share (in dollars per share) $ 0.644 $ 0.602
Diluted Weighted Average Common Shares Outstanding (in shares) 2,888 2,924.3
[1] Basic net earnings per share and diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble.
[2] Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble.
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract] ' '
NET EARNINGS $ 2,020 $ 3,057
Financial statement translation (2,836) 1,049
Hedges 408 (239)
Investment securities net of tax (3) 14
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax 282 (56)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (2,149) 768
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest (129) 3,825
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 12 35
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ (141) $ 3,790
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CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
CURRENT ASSETS ' '
Cash and cash equivalents $ 7,486 $ 8,558
Available-for-sale investment securities 3,360 2,128
Accounts receivable 6,197 6,386
Inventories ' '
Materials and supplies 1,829 1,742
Work in process 739 684
Finished goods 4,532 4,333
Total inventories 7,100 6,759
Deferred income taxes 916 1,092
Prepaid expenses and other current assets 3,914 3,845
Assets held for sale, net 134 2,849
TOTAL CURRENT ASSETS 29,107 31,617
PROPERTY, PLANT AND EQUIPMENT ' '
Total property, plant and equipment 21,799 22,304
GOODWILL AND OTHER INTANGIBLE ASSETS ' '
Goodwill 51,361 53,704
Trademarks and other intangible assets, net 30,210 30,843
OTHER NON-CURRENT ASSETS 5,706 5,798
TOTAL ASSETS 138,183 144,266
CURRENT LIABILITIES ' '
Accounts payable 8,280 8,461
Accrued and other liabilities 9,554 8,999
Disposal Group, Including Discontinued Operation, Liabilities, Current 9 660
Debt due within one year 14,228 15,606
TOTAL CURRENT LIABILITIES 32,071 33,726
LONG-TERM DEBT 19,004 19,811
DEFERRED INCOME TAXES 10,271 10,218
OTHER NON-CURRENT LIABILITIES 10,008 10,535
TOTAL LIABILITIES 71,354 74,290
SHAREHOLDERS' EQUITY ' '
Preferred stock 1,102 1,111
Common Stock, Shares, Issued 4,009.2 4,009.2
Common Stock, Value, Issued 4,009 4,009
Additional paid-in capital 64,028 63,911
Reserve for ESOP debt retirement (1,331) (1,340)
Accumulated other comprehensive income (loss) (9,811) (7,662)
Treasury stock (77,149) (75,805)
Retained earnings 85,207 84,990
Noncontrolling interest 774 762
TOTAL SHAREHOLDERS' EQUITY 66,829 69,976
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 138,183 $ 144,266
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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Statement of Cash Flows [Abstract] ' '
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 8,558 $ 5,947
OPERATING ACTIVITIES ' '
NET EARNINGS 2,020 3,057
Depreciation and amortization 794 771
Share-based compensation expense 81 84
Deferred income taxes (15) (11)
(Gain)/loss on sale of businesses (234) (2)
Goodwill and indefinite lived intangibles impairment charges 973 0
Changes in: ' '
Accounts receivable (101) (3)
Inventories (568) (452)
Accounts payable, accrued and other liabilities 812 (809)
Other operating assets and liabilities (316) (731)
Other 187 140
TOTAL OPERATING ACTIVITIES 3,633 2,044
INVESTING ACTIVITIES ' '
Capital expenditures (810) (725)
Proceeds from asset sales 2,948 2
Acquisitions, net of cash acquired (15) 1
Purchases of available-for-sale investment securities (1,342) 0
Proceeds from sales of available-for-sale investment securities 101 0
Change in investments (440) (124)
TOTAL INVESTING ACTIVITIES 442 (846)
FINANCING ACTIVITIES ' '
Dividends to shareholders (1,806) (1,708)
Change in short-term debt 105 1,862
Additions to long-term debt 0 1,073
Reductions of long-term debt (1,902) 0
Treasury stock purchases (2,378) (2,502)
Impact of stock options and other 966 304
TOTAL FINANCING ACTIVITIES (5,015) (971)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (132) (52)
CHANGE IN CASH AND CASH EQUIVALENTS (1,072) 175
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 7,486 $ 6,122
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Organization, Consolidation and Presentation of Financial Statements Disclosure
3 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] '
Organization, Consolidation and Presentation of Financial Statements Disclosure '
1. Basis of Presentation

These statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. In the opinion of management, the accompanying unaudited Consolidated Financial Statements of The Procter & Gamble Company and subsidiaries (the "Company," "Procter & Gamble," "we" or "our") contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. However, the results of operations included in such financial statements may not necessarily be indicative of annual results.
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New Accounting Pronouncements and Policies
3 Months Ended
Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract] '
New Accounting Pronouncements and Policies '
2. New Accounting Pronouncements and Policies

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We will adopt the standard on July 1, 2017. We are still evaluating the impact, if any, that the standard will have on our financial statements.
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on the Consolidated Financial Statements.
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Segment Information
3 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract] '
Segment Information '
3. Segment Information

As discussed in Note 11, the Pet Care divested business is presented as discontinued operations and is excluded from segment results for all periods presented.

Following is a summary of segment results:
 
 
 
Three Months Ended September 30
 
 
 
Net Sales
 
Earnings / (Loss) from Continuing Operations Before Income Taxes
 
Net Earnings from Continuing Operations
Beauty, Hair and Personal Care
2014
  
$
4,857

 
$
926

 
$
710

 
2013
  
4,903

 
909

 
690

Grooming
2014
  
1,941

 
621

 
466

 
2013
  
1,956

 
601

 
453

Health Care
2014
  
2,011

 
459

 
322

 
2013
  
1,894

 
384

 
265

Fabric Care and Home Care
2014
  
6,538

 
1,180

 
783

 
2013
  
6,666

 
1,296

 
857

Baby, Feminine and Family Care
2014
  
5,322

 
1,202

 
825

 
2013
  
5,247

 
1,082

 
725

Corporate
2014
  
123

 
(1,565
)
 
(1,103
)
 
2013
  
164

 
(291
)
 
49

Total Company
2014
  
$
20,792

 
$
2,823

 
$
2,003

 
2013
  
20,830

 
3,981

 
3,039

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Goodwill and Other Intangible Assets
3 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract] '
Goodwill and Other Intangible Assets '
4. Goodwill and Other Intangible Assets

Goodwill is allocated by reportable segment as follows:
 
Beauty, Hair and Personal Care
 
Grooming
 
Health Care
 
Fabric Care and Home Care
 
Baby, Feminine and Family Care
 
Corporate
 
Total Company
GOODWILL at June 30, 2014
$
17,040

 
$
20,939

 
$
6,280

 
$
4,535

 
$
4,910

 
$

 
$
53,704

Acquisitions and divestitures

 

 

 
(2
)
 

 

 
(2
)
Goodwill impairment charges

 

 

 
(863
)
 

 

 
(863
)
Translation and other
(586
)
 
(512
)
 
(155
)
 
(85
)
 
(140
)
 

 
(1,478
)
GOODWILL at September 30, 2014
$
16,454

 
$
20,427

 
$
6,125

 
$
3,585

 
$
4,770

 
$

 
$
51,361



During the quarter ended September 30, 2014, we determined that the estimated fair value of our Batteries reporting unit was less than its carrying amount. The underlying fair value assessment was triggered by an agreement that was reached in the quarter to sell a portion of the Batteries business and a related decision to pursue options to exit the remainder of the Batteries business. As previously disclosed in our Annual Report on Form 10-K for the year ended June 30, 2014, the results of our annual goodwill impairment testing during fiscal 2014 indicated a decline in the fair value of the Batteries reporting unit due to lower long-term market growth assumptions in certain key geographies. At that time, the estimated fair value of Batteries continued to exceed its underlying carrying value, but the fair value cushion had been reduced to about 5%. The agreement during the most recent quarter to sell a portion of the Batteries business is at a transaction value that is below the earnings multiple implied from the prior valuation of our Batteries business, which effectively eliminated our fair value cushion. As a result, the remaining business unit cash flows no longer support the remaining carrying amount of the Batteries business. In addition, management made the decision in October to pursue alternatives to exit the remainder of the Batteries business, which could include a sale or split-off transaction. The timing of any such transaction is uncertain.

Due largely to the above factors, we recorded a non-cash before and after-tax impairment charge of $863 to reduce the carrying amount of goodwill for the Batteries business unit to its estimated fair value. Following the impairment charge, the carrying value of the Batteries goodwill was $1,344. These same factors resulted in a decline in the fair value of our Duracell brand intangible asset below its carrying value. This resulted in a non-cash, before-tax impairment charge of $110 ($69 after tax) to reduce the carrying amount of this asset to its estimated fair value. The carrying value of our Duracell brand intangible asset was $2,135 as of September 30, 2014.

The test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit's goodwill. The second step of the impairment analysis requires a valuation of a reporting unit's tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the resulting implied fair value of the reporting unit's goodwill is less than its carrying value, that difference represents an impairment. The impairment charges are included in Corporate for segment reporting.

The business unit valuations used to test goodwill and intangible assets for impairment are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion and Company business plans.  We believe these estimates and assumptions are reasonable.  However, actual events and results of the Batteries reporting unit could differ substantially from those used in our valuations.  To the extent such factors result in a reduction of the level of projected cash flows used to estimate the Batteries reporting unit fair value, we may need to record additional non-cash impairment charges in the future.

In addition, as previously disclosed in our Annual Report on Form 10-K for the year ended June 30, 2014, a key competitor announced its intent to split its consolidated business into two separate companies during 2015.  One of those companies would operate primarily in the batteries category.  While this proposed transaction has not been consummated, initial independent third party estimates of the competitor’s stand-alone batteries business valuation are below the earnings multiple implied from the most recent valuation of our Batteries business.  We attribute the implied valuation difference primarily to our more favorable business trends, primarily organic net sales and share growth, and brand equity. If our evaluation of exit alternatives results in the execution of a divestiture transaction, such a divestiture could result in an additional loss that could be material depending on the form of the transaction and/or valuations utilized by potential acquirers.

In addition to the impairment charge, goodwill decreased from June 30, 2014 due to currency translation across all reportable segments.

Identifiable intangible assets at September 30, 2014 are comprised of:
 
Gross Carrying Amount
 
Accumulated Amortization
Intangible assets with determinable lives
$
9,120

  
$
(5,221
)
Intangible assets with indefinite lives
26,311

  

Total identifiable intangible assets
$
35,431

  
$
(5,221
)


Intangible assets with determinable lives consist of brands, patents, technology and customer relationships. The intangible assets with indefinite lives consist primarily of brands. The amortization of intangible assets for the three months ended September 30, 2014 and 2013 was $119 and $134, respectively.
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Share-Based Compensation
3 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] '
Share-Based Compensation '
5. Share-Based Compensation and Postretirement Benefits

Total share-based compensation expense for the three months ended September 30, 2014 and 2013 was $81 and $84, respectively.

The Company offers various postretirement benefits to its employees. The total net periodic benefit cost for pension benefits for the three months ended September 30, 2014 and 2013 was $117 and $104, respectively. The total net periodic benefit cost for other retiree benefits for the three months ended September 30, 2014 and 2013 was $4 and $13, respectively. The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2014.
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Risk Management Activities and Fair Value Measurements
3 Months Ended
Sep. 30, 2014
Risk Management Activities and Fair Value Measurements [Abstract] '
Risk Management And Fair Value Measurements '
6. Risk Management Activities and Fair Value Measurements

As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices.

The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented. Except for the impairment charges related to our Batteries business (see Note 4), there were no assets or liabilities that were remeasured at fair value on a non-recurring basis for the period ended September 30, 2014.

The following table sets forth the Company’s financial assets as of September 30, 2014 and June 30, 2014 that are measured at fair value on a recurring basis during the period:
 
 
 
Fair Value Asset
 
 
September 30, 2014
 
June 30, 2014
Investments
 
 
 
 
U.S. government securities
  
$
2,377

 
$
1,631

Corporate bond securities
 
983

 
497

Other investments
 
33

 
30

Total
 
$
3,393

 
$
2,158



Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of U.S. government securities with maturities less than one year was $150 as of September 30, 2014 and $0 as of June 30, 2014. The amortized cost of U.S. government securities with maturities between one and five years was $2,248 as of September 30, 2014 and $1,649 as of June 30, 2014. The amortized cost of Corporate bond securities with maturities of less than a year was $77 as of September 30, 2014 and $39 as of June 30, 2014. The amortized cost of Corporate bond securities with maturities between one and five years was $909 as of September 30, 2014 and $458 as of June 30, 2014. The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. There are no material investment balances classified as either Level 1 or Level 3 within the fair value hierarchy. Fair values are generally estimated based upon quoted market prices for similar instruments.

The fair value of long-term debt was $23,992 and $26,429 at September 30, 2014 and June 30, 2014, respectively. This includes the current portion ($2,651 and $4,400 as of September 30, 2014 and June 30, 2014, respectively) of debt instruments. Long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes. Long-term debt with fair value of $1,681 and $1,682 at September 30, 2014 and June 30, 2014, respectively, is classified as Level 2 within the fair value hierarchy. All remaining long-term debt is classified as Level 1 within the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments.

The following table sets forth the notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of September 30, 2014 and June 30, 2014:
 
Notional Amount
 
Fair Value Asset/(Liability)
 
September 30, 2014
 
June 30, 2014
 
September 30, 2014
 
June 30, 2014
Derivatives in Cash Flow Hedging Relationships
 
 
 
 
 
 
 
Foreign currency contracts
$
951

 
$
951

  
$
239

 
$
187

Derivatives in Fair Value Hedging Relationships
 
 
 
 
 
 
 
Interest rate contracts
$
7,671

 
$
9,738

 
$
191

 
$
168

Derivatives in Net Investment Hedging Relationships
 
 
 
 
 
 
 
Net investment hedges
$
838

 
$
831

 
$
103

 
$
48

Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
Foreign currency contracts
$
8,964

 
$
12,111

 
$
(205
)
 
$
(42
)

  
All derivative assets are presented in Prepaid expenses and other current assets and Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities and Other noncurrent liabilities. The total notional amount of contracts outstanding at the end of the period is indicative of the Company's derivative activity during the period. The change in the notional balance of foreign currency contracts not designated as hedging instruments during the period reflects changes in the level of intercompany financing activity. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy.
 
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)
 
September 30, 2014
 
June 30, 2014
Derivatives in Cash Flow Hedging Relationships
 
 
 
Interest rate contracts
$
2

 
$
3

Foreign currency contracts
8

 
14

Total
$
10

 
$
17

Derivatives in Net Investment Hedging Relationships
 
 
 
Net investment hedges
$
64

 
$
30



The effective portion of gains and losses on derivative instruments that was recognized in other comprehensive income (OCI) during the three months ended September 30, 2014 and 2013, was not material. During the next 12 months, the amount of the September 30, 2014 accumulated OCI (AOCI) balance that will be reclassified to earnings is expected to be immaterial.

The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the three months ended September 30, 2014 and 2013 are as follows:
 
 
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (1)
 
Three Months Ended September 30
 
2014
 
2013
Derivatives in Cash Flow Hedging Relationships
 
 
 
Interest rate contracts
$
2

 
$
2

Foreign currency contracts
62

 
(2
)
Total
$
64

 
$

 
 
 
 
 
Amount of Gain/(Loss) Recognized in Income
 
Three Months Ended September 30
 
2014
 
2013
Derivatives in Fair Value Hedging Relationships (2)

 
 
 
Interest rate contracts
$
23

 
$
(29
)
Debt
(23
)
 
29

Total

 

Derivatives in Net Investment Hedging Relationships (2)
 
 
 
Net investment hedges
$
(1
)
 
$

Derivatives Not Designated as Hedging Instruments (3)
 
 
 
Foreign currency contracts (4)
$
(413
)
 
$
109


(1) 
The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense.
(2) 
The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense.
(3) 
The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A.
(4)
The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure.
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Accumulated Other Comprehensive Income / (Loss) Accumulated Other Comprehensive Income / (Loss)
3 Months Ended
Sep. 30, 2014
Statement of Financial Position [Abstract] '
Accumulated Other Comprehensive Income [Text Block] '
7. Accumulated Other Comprehensive Income / (Loss)

The tables below present the changes in accumulated other comprehensive income / (loss) by component and the reclassifications out of accumulated other comprehensive income / (loss):
 
Changes in Accumulated Other Comprehensive Income / (Loss) by Component
 
 
 
Hedges
 
Investment Securities
 
Pension and Other Retiree Benefits
 
Financial Statement Translation
 
Total
 
Balance at June 30, 2014
$
(3,876
)
 
$
(18
)
 
$
(5,165
)
 
$
1,397

 
$
(7,662
)
 
OCI before reclassifications (1)
471

 
(3
)
 
207

 
(2,836
)
 
(2,161
)
 
Amounts reclassified out of AOCI
(63
)
 

 
75

 

 
12

 
Net current period OCI
408

 
(3
)
 
282

 
(2,836
)
 
(2,149
)
 
Balance at September 30, 2014
$
(3,468
)
 
$
(21
)
 
$
(4,883
)
 
$
(1,439
)
 
$
(9,811
)

(1) Net of tax (benefit) / expense of $250, $1 and $90 for hedges, investment securities, and pension and other retiree benefits plans, respectively.

Reclassifications out of Accumulated Other Comprehensive Income / (Loss)
 
Three Months Ended September 30
 
2014
 
2013
Hedges (1)
 
 
 
Interest rate contracts
$
2

 
$
2

Foreign exchange contracts
62

 
(2
)
Total before-tax
64

 

Tax (expense) / benefit
(1
)
 
(1
)
Net of tax
63

 
(1
)
 
 
 
 
Pension and Other Retiree Benefits (2)
 
 
 
Amortization of deferred amounts
(3
)
 
(1
)
Recognized net actuarial gains/(losses)
(100
)
 
(81
)
Total before-tax
(103
)
 
(82
)
Tax (expense) / benefit
28

 
24

Net of tax
(75
)
 
(58
)
Total reclassifications, net of tax
$
(12
)
 
$
(59
)

(1) See Note 6 for classification of these items in the Consolidated Statement of Earnings.
(2) Reclassified from AOCI into Cost of products sold and SG&A. These components are included in net periodic pension cost.
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Earnings Per Share
3 Months Ended
Sep. 30, 2014
Notes to Financial Statements [Abstract] '
EARNINGS PER SHARE '
8. Earnings Per Share
Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) are divided by the weighted average number of common shares outstanding during the period to calculate basic net earnings per common share. Diluted net earnings per common share are calculated to give effect to stock options and other stock-based awards and assume conversion of preferred stock (see below).
Net earnings attributable to Procter & Gamble and common shares used to calculate basic and diluted net earnings per share were as follows:
 
Three Months Ended September 30
Amounts in millions except per share amounts
2014
 
2013
NET EARNINGS FROM CONTINUING OPERATIONS
$
2,003

 
$
3,039

Net earnings from discontinued operations
17

 
18

NET EARNINGS
2,020

 
3,057

Net earnings attributable to noncontrolling interests
(30
)
 
(30
)
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED)
1,990

 
3,027

Preferred dividends, net of tax benefit
(60
)
 
(58
)
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC)
1,930

 
2,969

 
 
 
 
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC)
$
1,913

 
$
2,951

 
 
 
 
NET EARNINGS FROM CONTINUTING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED)
$
1,973

 
$
3,009

 
 
 
 
 
Three Months Ended September 30
Shares in millions
2014
 
2013
Basic weighted average common shares outstanding
2,710.6

 
2,735.2

Effect of dilutive securities
 
 
 
Conversion of preferred shares (1)
110.2

 
113.4

Exercise of stock options and other unvested equity awards (2)
67.2

 
75.7

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,888.0

 
2,924.3

 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE (3)
 
 
 
Earnings from continuing operations
$
0.70

 
$
1.08

Earnings from discontinued operations
0.01

 
0.01

BASIC NET EARNINGS PER COMMON SHARE
0.71

 
1.09

 
 
 
 
DILUTED NET EARNINGS PER COMMON SHARE (3)
 
 
 
Earnings from continuing operations
$
0.68

 
$
1.03

Earnings from discontinued operations
0.01

 
0.01

DILUTED NET EARNINGS PER COMMON SHARE
0.69

 
1.04

(1) 
Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.
(2) 
Approximately 23 million in the three months ended September 30, 2014 and 22 million in the three months ended September 30, 2013 of the Company's outstanding stock options were not included in the diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares).
(3) 
Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble.
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Restructuring Program
3 Months Ended
Sep. 30, 2014
Restructuring and Related Activities [Abstract] '
Restructuring Program '
9. Restructuring Program
The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In 2012, the Company initiated an incremental restructuring program as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing and overheads. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy.

The Company expects to incur in excess of $4.5 billion in before-tax restructuring costs over a five year period (from fiscal 2012 through fiscal 2016), including costs incurred as part of the ongoing and incremental restructuring program. The restructuring program plans included a targeted net reduction in non-manufacturing overhead enrollment of approximately 16% - 22% through fiscal 2016, which we expect to exceed. Through fiscal 2014, the Company reduced non-manufacturing enrollment by approximately 9,300, or approximately 15%. The reductions are enabled by the elimination of duplicate work, simplification through the use of technology, optimization of various functional and business organizations and the Company's global footprint. In addition, the plan includes integration of newly acquired companies and the optimization of the supply chain and other manufacturing processes.

Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs as outlined below. Through fiscal 2014, the Company incurred charges of approximately $2.8 billion. Approximately $1.5 billion of these charges were related to separations, $666 were asset-related and $680 were related to other restructuring-type costs.

For the three months ended September 30, 2014, the Company incurred total restructuring charges of approximately $158. Approximately $47 of these charges were recorded in SG&A. The remainder is included in Cost of products sold. The following table presents restructuring activity for the three months ended September 30, 2014:
 
 
 
For the Three Months Ended September 30, 2014
 
 
 
Accrual Balance June 30, 2014
 
Charges
 
Cash Spent
 
Charges Against Assets
 
Accrual Balance September 30, 2014
Separations
$
353

 
$
81

 
$
(126
)
 
$

 
$
308

Asset-Related Costs

 
50

 

 
(50
)
 

Other Costs
28

 
27

 
(31
)
 

 
24

Total
$
381

 
$
158

 
$
(157
)
 
$
(50
)
 
$
332



Separation Costs
Employee separation charges for the three months ended September 30, 2014 relate to severance packages for approximately 650 employees, of which approximately 190 are non-manufacturing employees. These separations are primarily in North America and Western Europe. The packages are predominately voluntary and the amounts are calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Since its inception, the restructuring program has incurred separation charges related to approximately 10,130 employees, of which approximately 6,470 are non-manufacturing overhead personnel.
 
Asset-Related Costs
Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardization. The asset-related charges will not have a significant impact on future depreciation charges.

Other Costs
Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include employee relocation related to separations and office consolidations, termination of contracts related to supply chain redesign and the cost to change internal systems and processes to support the underlying organizational changes.

Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
 
Three Months Ended September 30
 
2014
Beauty, Hair and Personal Care
$
36

Grooming
13

Health Care
2

Fabric Care & Home Care
22

Baby, Feminine and Family Care
40

Corporate (1)
45

Total Company
$
158


(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities.
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Commitments and Contingencies
3 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract] '
Commitments and Contingencies '
10. Commitments and Contingencies

Litigation

The Company is subject to various legal proceedings and claims arising out of our business which cover a wide range of matters such as antitrust, trade and other governmental regulations, product liability, patent and trademark, advertising, contracts, environmental, labor and employment, and income taxes.

As previously disclosed, the Company has had a number of antitrust matters in Europe. These matters involve a number of other consumer products companies and/or retail customers. Several regulatory authorities in Europe have issued separate decisions pursuant to their investigations alleging that the Company, along with several other companies, engaged in violations of competition laws in those countries. Many of these matters have concluded and the fines have been paid. For ongoing matters, the Company has accrued liabilities for competition law violations from these European cases totaling $209 as of September 30, 2014. While the ultimate resolution of these matters for which we have accrued liabilities may result in fines or costs in excess of the amounts reserved, it is difficult to estimate such amounts at this time. Currently, however, we do not expect any such incremental losses to materially impact our financial statements in the period in which they are accrued and paid, respectively.

With respect to other litigation and claims, while considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows.

We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will have a material effect on our financial position, results of operations or cash flows.

Income Tax Uncertainties

The Company is present in approximately 140 taxable jurisdictions and, at any point in time, has 5060 audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitations. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2002 and forward. We are generally not able to reliably estimate the ultimate settlement amounts or timing until the close of the audit. While we do not expect material changes, it is possible that the amount of unrecognized benefit with respect to our uncertain tax positions will significantly increase or decrease within the next 12 months related to audits described above. At this time, we are not able to make a reasonable estimate of the range of impact on the balance of uncertain tax positions or the impact on the effective tax rate related to these items.

Additional information on the Commitments and Contingencies of the Company can be found in our Annual Report on Form 10-K for the year ended June 30, 2014.
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Discontinued Operations
3 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract] '
DISCONTINUED OPERATIONS '
11. Discontinued Operations
On July 31, 2014, the Company completed the divestiture of its Pet Care operations in North America, Latin America, and other selected countries to Mars, Incorporated (Mars) for $2.9 billion in an all-cash transaction. Under the terms of the agreement, Mars acquired our branded pet care products, our manufacturing facilities in the United States and the majority of the employees working in the Pet Care business. The agreement includes the acquisition of the Pet Care business in several additional countries, pending the receipt of necessary regulatory approvals. The European Union countries are not included in the agreement with Mars. In September 2014, the Company announced an agreement to sell its Pet Care operations in the European Union to Spectrum Brands. The Company expects to complete the transaction in the second half of fiscal 2015, pending the receipt of necessary regulatory approvals. The one-time impact of these transactions is not material.
The Pet Care business had historically been part of the Company’s Health Care reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Pet Care business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Pet Care balance sheet positions as of September 30, 2014 and June 30, 2014 are presented as Assets and Liabilities held for sale in the Consolidated Balance Sheets.
Following is selected financial information included in net earnings from discontinued operations for the Pet Care business:
 
Three Months Ended September 30
 
2014
 
2013
Net sales
$
163

 
$
375

Earnings from discontinued operations before income taxes
19

 
31

Income tax expense
(6
)
 
(13
)
Gain on sale of discontinued operations before income taxes
193

 

Income tax benefit/(expense) on sale
(189
)
 

Net earnings from discontinued operations
17

 
18


The major components of assets and liabilities of the Pet Care business held for sale were as follows:
 
September 30, 2014
 
June 30, 2014
Inventories
$
38

 
$
122

Prepaid expenses and other current assets
3

 
14

Property, plant and equipment, net
93

 
441

Goodwill and intangible assets, net

 
2,258

Other noncurrent assets

 
14

Total assets held for sale
134

 
2,849

 
 
 
 
Accounts payable
4

 
63

Accrued and other liabilities
5

 
13

Noncurrent deferred tax liabilities

 
584

Total liabilities held for sale
9

 
660

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Segment Information (Tables)
3 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract] '
Global Segment Results '
Following is a summary of segment results:
 
 
 
Three Months Ended September 30
 
 
 
Net Sales
 
Earnings / (Loss) from Continuing Operations Before Income Taxes
 
Net Earnings from Continuing Operations
Beauty, Hair and Personal Care
2014
  
$
4,857

 
$
926

 
$
710

 
2013
  
4,903

 
909

 
690

Grooming
2014
  
1,941

 
621

 
466

 
2013
  
1,956

 
601

 
453

Health Care
2014
  
2,011

 
459

 
322

 
2013
  
1,894

 
384

 
265

Fabric Care and Home Care
2014
  
6,538

 
1,180

 
783

 
2013
  
6,666

 
1,296

 
857

Baby, Feminine and Family Care
2014
  
5,322

 
1,202

 
825

 
2013
  
5,247

 
1,082

 
725

Corporate
2014
  
123

 
(1,565
)
 
(1,103
)
 
2013
  
164

 
(291
)
 
49

Total Company
2014
  
$
20,792

 
$
2,823

 
$
2,003

 
2013
  
20,830

 
3,981

 
3,039

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Goodwill and Other Intangible Assets (Tables)
3 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract] '
Change in the Net Carrying Amount of Goodwill by Global Business Unit '
Goodwill is allocated by reportable segment as follows:
 
Beauty, Hair and Personal Care
 
Grooming
 
Health Care
 
Fabric Care and Home Care
 
Baby, Feminine and Family Care
 
Corporate
 
Total Company
GOODWILL at June 30, 2014
$
17,040

 
$
20,939

 
$
6,280

 
$
4,535

 
$
4,910

 
$

 
$
53,704

Acquisitions and divestitures

 

 

 
(2
)
 

 

 
(2
)
Goodwill impairment charges

 

 

 
(863
)
 

 

 
(863
)
Translation and other
(586
)
 
(512
)
 
(155
)
 
(85
)
 
(140
)
 

 
(1,478
)
GOODWILL at September 30, 2014
$
16,454

 
$
20,427

 
$
6,125

 
$
3,585

 
$
4,770

 
$

 
$
51,361

Identifiable Intangible Assets '
Identifiable intangible assets at September 30, 2014 are comprised of:
 
Gross Carrying Amount
 
Accumulated Amortization
Intangible assets with determinable lives
$
9,120

  
$
(5,221
)
Intangible assets with indefinite lives
26,311

  

Total identifiable intangible assets
$
35,431

  
$
(5,221
)
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Risk Management Activities and Fair Value Measurements (Tables)
3 Months Ended
Sep. 30, 2014
Risk Management Activities and Fair Value Measurements [Abstract] '
Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis Table '
The following table sets forth the Company’s financial assets as of September 30, 2014 and June 30, 2014 that are measured at fair value on a recurring basis during the period:
 
 
 
Fair Value Asset
 
 
September 30, 2014
 
June 30, 2014
Investments
 
 
 
 
U.S. government securities
  
$
2,377

 
$
1,631

Corporate bond securities
 
983

 
497

Other investments
 
33

 
30

Total
 
$
3,393

 
$
2,158

Schedule of Derivative Instruments '
The following table sets forth the notional amounts and fair values of qualifying and non-qualifying financial instruments used in hedging transactions as of September 30, 2014 and June 30, 2014:
 
Notional Amount
 
Fair Value Asset/(Liability)
 
September 30, 2014
 
June 30, 2014
 
September 30, 2014
 
June 30, 2014
Derivatives in Cash Flow Hedging Relationships
 
 
 
 
 
 
 
Foreign currency contracts
$
951

 
$
951

  
$
239

 
$
187

Derivatives in Fair Value Hedging Relationships
 
 
 
 
 
 
 
Interest rate contracts
$
7,671

 
$
9,738

 
$
191

 
$
168

Derivatives in Net Investment Hedging Relationships
 
 
 
 
 
 
 
Net investment hedges
$
838

 
$
831

 
$
103

 
$
48

Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
Foreign currency contracts
$
8,964

 
$
12,111

 
$
(205
)
 
$
(42
)
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) '
 
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion)
 
September 30, 2014
 
June 30, 2014
Derivatives in Cash Flow Hedging Relationships
 
 
 
Interest rate contracts
$
2

 
$
3

Foreign currency contracts
8

 
14

Total
$
10

 
$
17

Derivatives in Net Investment Hedging Relationships
 
 
 
Net investment hedges
$
64

 
$
30

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance '
The amounts of gains and losses on qualifying and non-qualifying financial instruments used in hedging transactions for the three months ended September 30, 2014 and 2013 are as follows:
 
 
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (1)
 
Three Months Ended September 30
 
2014
 
2013
Derivatives in Cash Flow Hedging Relationships
 
 
 
Interest rate contracts
$
2

 
$
2

Foreign currency contracts
62

 
(2
)
Total
$
64

 
$

 
 
 
 
 
Amount of Gain/(Loss) Recognized in Income
 
Three Months Ended September 30
 
2014
 
2013
Derivatives in Fair Value Hedging Relationships (2)

 
 
 
Interest rate contracts
$
23

 
$
(29
)
Debt
(23
)
 
29

Total

 

Derivatives in Net Investment Hedging Relationships (2)
 
 
 
Net investment hedges
$
(1
)
 
$

Derivatives Not Designated as Hedging Instruments (3)
 
 
 
Foreign currency contracts (4)
$
(413
)
 
$
109


(1) 
The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense.
(2) 
The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense.
(3) 
The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A.
(4)
The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure.
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Accumulated Other Comprehensive Income / (Loss) Accumulated Other Comprehensive Income / (Loss) (Tables)
3 Months Ended
Sep. 30, 2014
Statement of Financial Position [Abstract] '
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] '
The tables below present the changes in accumulated other comprehensive income / (loss) by component and the reclassifications out of accumulated other comprehensive income / (loss):
 
Changes in Accumulated Other Comprehensive Income / (Loss) by Component
 
 
 
Hedges
 
Investment Securities
 
Pension and Other Retiree Benefits
 
Financial Statement Translation
 
Total
 
Balance at June 30, 2014
$
(3,876
)
 
$
(18
)
 
$
(5,165
)
 
$
1,397

 
$
(7,662
)
 
OCI before reclassifications (1)
471

 
(3
)
 
207

 
(2,836
)
 
(2,161
)
 
Amounts reclassified out of AOCI
(63
)
 

 
75

 

 
12

 
Net current period OCI
408

 
(3
)
 
282

 
(2,836
)
 
(2,149
)
 
Balance at September 30, 2014
$
(3,468
)
 
$
(21
)
 
$
(4,883
)
 
$
(1,439
)
 
$
(9,811
)

(1) Net of tax (benefit) / expense of $250, $1 and $90 for hedges, investment securities, and pension and other retiree benefits plans, respectively.

Reclassifications out of Accumulated Other Comprehensive Income [Table Text Block] '
Reclassifications out of Accumulated Other Comprehensive Income / (Loss)
 
Three Months Ended September 30
 
2014
 
2013
Hedges (1)
 
 
 
Interest rate contracts
$
2

 
$
2

Foreign exchange contracts
62

 
(2
)
Total before-tax
64

 

Tax (expense) / benefit
(1
)
 
(1
)
Net of tax
63

 
(1
)
 
 
 
 
Pension and Other Retiree Benefits (2)
 
 
 
Amortization of deferred amounts
(3
)
 
(1
)
Recognized net actuarial gains/(losses)
(100
)
 
(81
)
Total before-tax
(103
)
 
(82
)
Tax (expense) / benefit
28

 
24

Net of tax
(75
)
 
(58
)
Total reclassifications, net of tax
$
(12
)
 
$
(59
)

(1) See Note 6 for classification of these items in the Consolidated Statement of Earnings.
(2) Reclassified from AOCI into Cost of products sold and SG&A. These components are included in net periodic pension cost.
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Earnings Per Share (Tables)
3 Months Ended
Sep. 30, 2014
Notes to Financial Statements [Abstract] '
Net Earnings and Common Shares Used to Calculate Basic and Diluted Net Earnings per Share '
Net earnings attributable to Procter & Gamble and common shares used to calculate basic and diluted net earnings per share were as follows:
 
Three Months Ended September 30
Amounts in millions except per share amounts
2014
 
2013
NET EARNINGS FROM CONTINUING OPERATIONS
$
2,003

 
$
3,039

Net earnings from discontinued operations
17

 
18

NET EARNINGS
2,020

 
3,057

Net earnings attributable to noncontrolling interests
(30
)
 
(30
)
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED)
1,990

 
3,027

Preferred dividends, net of tax benefit
(60
)
 
(58
)
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC)
1,930

 
2,969

 
 
 
 
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (BASIC)
$
1,913

 
$
2,951

 
 
 
 
NET EARNINGS FROM CONTINUTING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (DILUTED)
$
1,973

 
$
3,009

 
 
 
 
 
Three Months Ended September 30
Shares in millions
2014
 
2013
Basic weighted average common shares outstanding
2,710.6

 
2,735.2

Effect of dilutive securities
 
 
 
Conversion of preferred shares (1)
110.2

 
113.4

Exercise of stock options and other unvested equity awards (2)
67.2

 
75.7

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,888.0

 
2,924.3

 
 
 
 
BASIC NET EARNINGS PER COMMON SHARE (3)
 
 
 
Earnings from continuing operations
$
0.70

 
$
1.08

Earnings from discontinued operations
0.01

 
0.01

BASIC NET EARNINGS PER COMMON SHARE
0.71

 
1.09

 
 
 
 
DILUTED NET EARNINGS PER COMMON SHARE (3)
 
 
 
Earnings from continuing operations
$
0.68

 
$
1.03

Earnings from discontinued operations
0.01

 
0.01

DILUTED NET EARNINGS PER COMMON SHARE
0.69

 
1.04

(1) 
Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.
(2) 
Approximately 23 million in the three months ended September 30, 2014 and 22 million in the three months ended September 30, 2013 of the Company's outstanding stock options were not included in the diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares).
(3) 
Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble.
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Restructuring Program (Tables)
3 Months Ended
Sep. 30, 2014
Restructuring and Related Activities [Abstract] '
Schedule of Restructuring Reserve '
The following table presents restructuring activity for the three months ended September 30, 2014:
 
 
 
For the Three Months Ended September 30, 2014
 
 
 
Accrual Balance June 30, 2014
 
Charges
 
Cash Spent
 
Charges Against Assets
 
Accrual Balance September 30, 2014
Separations
$
353

 
$
81

 
$
(126
)
 
$

 
$
308

Asset-Related Costs

 
50

 

 
(50
)
 

Other Costs
28

 
27

 
(31
)
 

 
24

Total
$
381

 
$
158

 
$
(157
)
 
$
(50
)
 
$
332



Schedule of Restructuring Costs '
Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
 
Three Months Ended September 30
 
2014
Beauty, Hair and Personal Care
$
36

Grooming
13

Health Care
2

Fabric Care & Home Care
22

Baby, Feminine and Family Care
40

Corporate (1)
45

Total Company
$
158


(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities.
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DISCONTINUED OPERATIONS (TABLES)
3 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract] '
Net Earnings from Discontinued Operations '
Following is selected financial information included in net earnings from discontinued operations for the Pet Care business:
 
Three Months Ended September 30
 
2014
 
2013
Net sales
$
163

 
$
375

Earnings from discontinued operations before income taxes
19

 
31

Income tax expense
(6
)
 
(13
)
Gain on sale of discontinued operations before income taxes
193

 

Income tax benefit/(expense) on sale
(189
)
 

Net earnings from discontinued operations
17

 
18

Major Components of Assets and Liabilities of Disposal Group Held for Sale '
The major components of assets and liabilities of the Pet Care business held for sale were as follows:
 
September 30, 2014
 
June 30, 2014
Inventories
$
38

 
$
122

Prepaid expenses and other current assets
3

 
14

Property, plant and equipment, net
93

 
441

Goodwill and intangible assets, net

 
2,258

Other noncurrent assets

 
14

Total assets held for sale
134

 
2,849

 
 
 
 
Accounts payable
4

 
63

Accrued and other liabilities
5

 
13

Noncurrent deferred tax liabilities

 
584

Total liabilities held for sale
9

 
660

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Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations $ 20,792 $ 20,830
Earnings Before Income Taxes 2,823 3,981
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest 2,003 3,039
Net Earnings 2,020 3,057
Beauty, Hair and Personal Care ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 4,857 4,903
Earnings Before Income Taxes 926 909
Net Earnings 710 690
Grooming ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 1,941 1,956
Earnings Before Income Taxes 621 601
Net Earnings 466 453
Health Care ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 2,011 1,894
Earnings Before Income Taxes 459 384
Net Earnings 322 265
Fabric Care and Home Care ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 6,538 6,666
Earnings Before Income Taxes 1,180 1,296
Net Earnings 783 857
Baby, Feminine and Family Care ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 5,322 5,247
Earnings Before Income Taxes 1,202 1,082
Net Earnings 825 725
Corporate ' '
Segment Reporting Information [Line Items] ' '
Net Earnings from Continuing Operations 123 164
Earnings Before Income Taxes (1,565) (291)
Net Earnings $ (1,103) $ 49
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Goodwill and Other Intangible Assets - Change in the Net Carrying Amount of Goodwill by Global Business Unit (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Goodwill [Roll Forward] '
GOODWILL, beginning of period $ 53,704
Acquisitions and divestitures (2)
Goodwill, Impairment Loss (863)
Translation and other (1,478)
GOODWILL, end of period 51,361
Beauty, Hair and Personal Care '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 17,040
Acquisitions and divestitures 0
Translation and other (586)
GOODWILL, end of period 16,454
Grooming '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 20,939
Acquisitions and divestitures 0
Translation and other (512)
GOODWILL, end of period 20,427
Health Care '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 6,280
Acquisitions and divestitures 0
Translation and other (155)
GOODWILL, end of period 6,125
Fabric Care and Home Care '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 4,535
Acquisitions and divestitures (2)
Goodwill, Impairment Loss (863)
Translation and other (85)
GOODWILL, end of period 3,585
Baby, Feminine and Family Care '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 4,910
Acquisitions and divestitures 0
Translation and other (140)
GOODWILL, end of period 4,770
Corporate '
Goodwill [Roll Forward] '
GOODWILL, beginning of period 0
Acquisitions and divestitures 0
Translation and other 0
GOODWILL, end of period $ 0
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Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] '
Gross Carrying Amount $ 35,431
Finite-Lived Intangible Assets, Accumulated Amortization (5,221)
INTANGIBLE ASSETS WITH DETERMINABLE LIVES '
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] '
Gross Carrying Amount 9,120
INTANGIBLE ASSETS WITH INDEFINITE LIVES '
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] '
Gross Carrying Amount $ 26,311
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Goodwill and Other Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Jun. 30, 2014
Goodwill and Other Intangible Assets - Change in the Net Carrying Amount ' ' '
Goodwill, Impairment Loss $ 863 ' '
Goodwill 51,361 ' 53,704
Amortization of intangible assets 119 134 '
Batteries [Member] ' ' '
Goodwill and Other Intangible Assets - Change in the Net Carrying Amount ' ' '
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount ' ' 5.00%
Goodwill, Impairment Loss 863 ' '
Goodwill 1,344 ' '
Duracell [Member] ' ' '
Goodwill and Other Intangible Assets - Change in the Net Carrying Amount ' ' '
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) 110 ' '
Indefinite-Lived Intangible Assets (Excluding Goodwill) 2,135 ' '
Intangible Asset Impairment Charges After Tax $ 69 ' '
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Share-Based Compensation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Share-Based Compensation ' '
Allocated Share-based Compensation Expense $ 81 $ 84
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Share-Based Compensation and Postretirement Benefits Postretirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Pension Plan [Member] ' '
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] ' '
Defined Benefit Plan, Net Periodic Benefit Cost $ 117 $ 104
Other Postretirement Benefit Plan [Member] ' '
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] ' '
Defined Benefit Plan, Net Periodic Benefit Cost $ 4 $ 13
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Risk Management Activities and Fair Value Measurements - Fair Value (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis $ 77 $ 39
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis 909 458
Liabilities, Fair Value Disclosure [Abstract] ' '
Long Term Debt, Current Maturities measured at Fair Value 2,651 4,400
US Treasury and Government [Member] ' '
Assets, Fair Value Disclosure [Abstract] ' '
Investment securities 2,377 1,631
Other Investments [Member] ' '
Assets, Fair Value Disclosure [Abstract] ' '
Investment securities 33 30
Corporate Bond Securities [Member] ' '
Assets, Fair Value Disclosure [Abstract] ' '
Investment securities 983 497
Fair Value Measurement [Domain] ' '
Assets, Fair Value Disclosure [Abstract] ' '
Investment securities 3,393 2,158
Fair Value, Inputs, Level 2 [Member] ' '
Liabilities, Fair Value Disclosure [Abstract] ' '
Long-term Debt, Fair Value 1,681 1,682
Estimate of Fair Value, Fair Value Disclosure [Member] ' '
Liabilities, Fair Value Disclosure [Abstract] ' '
Long-term Debt, Fair Value 23,992 26,429
Other Current Assets [Member] ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Available-for-sale Securities, Amortized Cost Basis 150 0
Other Noncurrent Assets [Member] ' '
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Available-for-sale Securities, Amortized Cost Basis $ 2,248 $ 1,649
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Risk Management Activities and Fair Value Measurements - Derivative Notional Amounts and Fair Value (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] ' '
Derivative [Line Items] ' '
Notional amount $ 951 $ 951
Fair Value Asset (Liability) 239 187
Fair Value Hedging [Member] | Interest Rate Contract [Member] ' '
Derivative [Line Items] ' '
Notional amount 7,671 9,738
Fair Value Asset (Liability) 191 168
Net Investment Hedging [Member] ' '
Derivative [Line Items] ' '
Notional amount 838 831
Fair Value Asset (Liability) 103 48
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] ' '
Derivative [Line Items] ' '
Notional amount 8,964 12,111
Fair Value Asset (Liability) $ (205) $ (42)
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Risk Management Activities and Fair Value Measurements - Gains (Losses) on Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Jun. 30, 2014
Cash Flow Hedging [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) $ 10 ' $ 17
Amount of Gain (Loss) Reclassified from AOCI into Income 64 [1] 0 [1] '
Cash Flow Hedging [Member] | Interest Rate Contract [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) 2 ' 3
Amount of Gain (Loss) Reclassified from AOCI into Income 2 [1] 2 [1] '
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) 8 ' 14
Amount of Gain (Loss) Reclassified from AOCI into Income 62 [1] (2) [1] '
Fair Value Hedging [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in Income 0 [2] 0 [2] '
Fair Value Hedging [Member] | Interest Rate Contract [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in Income 23 [2] (29) [2] '
Fair Value Hedging [Member] | Debt [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in Income (23) [2] 29 [2] '
Net Investment Hedging [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) 64 ' 30
Amount of Gain (Loss) Recognized in Income (1) [2] 0 [2] '
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] ' ' '
Derivative Instruments, Gain (Loss) [Line Items] ' ' '
Amount of Gain (Loss) Recognized in Income $ (413) [3],[4] $ 109 [3],[4] '
[1] The gain or loss on the effective portion of cash flow hedging relationships is reclassified from AOCI into net income in the same period during which the related item affects earnings. Such amounts are included in the Consolidated Statements of Earnings as follows: interest rate contracts in Interest expense and foreign currency contracts in Selling, general and administrative expense (SG&A) and Interest expense.
[2] The gain or loss on the ineffective portion of interest rate contracts and net investment hedges, if any, is included in the Consolidated Statements of Earnings in Interest expense.
[3] The gain or loss on non-qualifying foreign currency contracts substantially offsets the foreign currency mark-to-market impact of the related exposure.
[4] The gain or loss on foreign currency contracts not designated as hedging instruments is included in the Consolidated Statements of Earnings in SG&A.
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Risk Management Activities and Fair Value Measurements Risk Management Activities and Fair Value Measurements - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' '
Long Term Debt, Current Maturities measured at Fair Value $ 2,651 $ 4,400
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Accumulated Other Comprehensive Income / (Loss) Changes in Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Accumulated Other Comprehensive Income [Line Items] ' '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance $ (7,662) '
Other Comprehensive Income Before Reclassification (2,161) [1] '
Reclassifications out of Accumulated Other Comprehensive Income 12 '
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (2,149) 768
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (9,811) '
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges ' '
Accumulated Other Comprehensive Income [Line Items] ' '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (3,876) '
Other Comprehensive Income Before Reclassification 471 [1] '
Reclassifications out of Accumulated Other Comprehensive Income (63) '
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 408 '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (3,468) '
Accumulated Net Unrealized Investment Gain (Loss) [Member] ' '
Accumulated Other Comprehensive Income [Line Items] ' '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (18) '
Other Comprehensive Income Before Reclassification (3) [1] '
Reclassifications out of Accumulated Other Comprehensive Income 0 '
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (3) '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (21) '
Pension Plan [Member] ' '
Accumulated Other Comprehensive Income [Line Items] ' '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (5,165) '
Other Comprehensive Income Before Reclassification 207 [1] '
Reclassifications out of Accumulated Other Comprehensive Income 75 '
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX 282 '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (4,883) '
Foreign Currency Gain (Loss) [Member] ' '
Accumulated Other Comprehensive Income [Line Items] ' '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance 1,397 '
Other Comprehensive Income Before Reclassification (2,836) [1] '
Reclassifications out of Accumulated Other Comprehensive Income 0 '
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (2,836) '
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (1,439) '
Reclassification out of AOCI - Components [Domain] ' '
Accumulated Other Comprehensive Income [Line Items] ' '
Reclassifications out of Accumulated Other Comprehensive Income $ 12 $ 59
[1] Net of tax (benefit) / expense of $250, $1 and $90 for hedges, investment securities, and pension and other retiree benefits plans, respectively.
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Accumulated Other Comprehensive Income / (Loss) Reclassifications out of Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] ' '
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax $ (250) '
Hedges and investment securities, net of tax 408 (239)
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax (1) '
Net of tax (3) 14
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax (90) '
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax 282 (56)
Reclassifications out of Accumulated Other Comprehensive Income (12) '
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges ' '
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] ' '
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net 2 [1] 2 [1]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax 62 (2)
Gains and Losses on Hedges and Investment Securities, before tax 64 0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax (1) (1)
Hedges and investment securities, net of tax 63 (1)
Pension Plan [Member] ' '
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] ' '
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) (3) [2] (1) [2]
Defined Benefit Plan, Actuarial Gain (Loss) (100) [2] (81) [2]
Defined Benefit Plan, Amortization of Net Gains (Losses) (103) (82)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax 28 24
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax (75) (58)
Reclassification out of AOCI - Components [Domain] ' '
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] ' '
Reclassifications out of Accumulated Other Comprehensive Income $ (12) $ (59)
[1] See Note 6 for classification of these items in the Consolidated Statement of Earnings.
[2] Reclassified from AOCI into Cost of products sold and SG&A. These components are included in net periodic pension cost.
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Accumulated Other Comprehensive Income / (Loss) Additional Information - AOCI (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Statement of Comprehensive Income [Abstract] '
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax $ 250
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax 1
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax $ 90
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Earnings Per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Earnings Per Share Reconciliation [Abstract] ' '
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest $ 2,003 $ 3,039
Net earnings from discontinued operations 17 18
NET EARNINGS 2,020 3,057
Less: Net earnings attributable to noncontrolling interests (30) (30)
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 1,990 3,027
Preferred dividends, net of tax benefits (60) (58)
Net Income (Loss) Available to Common Stockholders, Basic 1,930 2,969
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE AVAILABLE TO COMMON SHAREHOLDERS (Basic) 1,913 2,951
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PROCTER & GAMBLE (Diluted) $ 1,973 $ 3,009
Weighted Average Number of Shares Outstanding, Diluted [Abstract] ' '
Basic weighted average common shares outstanding 2,710.6 2,735.2
Effect of dilutive securities ' '
Conversion of preferred shares 110.2 [1] 113.4 [1]
Exercise of stock options and other unvested equity awards 67.2 [2] 75.7 [2]
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2,888 2,924.3
Income (Loss) from Continuing Operations, Per Basic Share $ 0.7 [3],[4] $ 1.08 [3],[4]
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share $ 0.01 [3],[4] $ 0.01 [3],[4]
Earnings Per Share, Basic $ 0.71 [3],[4] $ 1.09 [3],[4]
Income (Loss) from Continuing Operations, Per Diluted Share $ 0.68 [3],[4] $ 1.03 [3],[4]
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share $ 0.01 [3],[4] $ 0.01 [3],[4]
Earnings Per Share, Diluted $ 0.69 [3],[4] $ 1.04 [3],[4]
[1] Despite being included currently in diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold. Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.
[2] Approximately 23 million in the three months ended September 30, 2014 and 22 million in the three months ended September 30, 2013 of the Company's outstanding stock options were not included in the diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i.e., the total proceeds upon exercise would have exceeded the market value of the underlying common shares).
[3] Basic net earnings per share and diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble.
[4] Basic net earnings per common share and diluted net earnings per common share are calculated on net earnings attributable to Procter & Gamble.
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Earnings Per Share - Antidilutive Securities (Details) (Stock Options [Member])
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Stock Options [Member] ' '
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] ' '
Outstanding stock options not included in the diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive, approximately 23 22
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Restructuring Reserve by Type of Costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 36 Months Ended 3 Months Ended 36 Months Ended 3 Months Ended 36 Months Ended 3 Months Ended 36 Months Ended 60 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Jun. 30, 2014
Non-manufacturing overhead personnel [Member]
employees
Sep. 30, 2014
Separations
Jun. 30, 2014
Separations
Sep. 30, 2014
Asset-Related Costs
Jun. 30, 2014
Asset-Related Costs
Sep. 30, 2014
Other Costs
Jun. 30, 2014
Other Costs
Jun. 30, 2016
Scenario, Forecast [Member]
Minimum [Member]
Non-manufacturing overhead personnel [Member]
Jun. 30, 2016
Scenario, Forecast [Member]
Maximum [Member]
Non-manufacturing overhead personnel [Member]
Restructuring Cost and Reserve [Line Items] ' ' ' ' ' ' ' ' ' ' '
Restructuring And Related Cost, Expected Number Of Positions Eliminated, Percent ' ' ' ' ' ' ' ' ' 16.00% 22.00%
Restructuring and Related Cost, Number of Positions Eliminated ' ' 9,300 ' ' ' ' ' ' ' '
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent ' ' 15.00% ' ' ' ' ' ' ' '
Restructuring Reserve [Roll Forward] ' ' ' ' ' ' ' ' ' ' '
Beginning accrual balance $ 381 ' ' $ 353 ' $ 0 ' $ 28 ' ' '
Charges Previously Reported 158 2,800 ' 81 1,500 50 666 27 680 ' '
Cash Spent (157) ' ' (126) ' 0 ' (31) ' ' '
Charges Against Assets (50) ' ' 0 ' (50) ' 0 ' ' '
Ending accrual balance $ 332 $ 381 ' $ 308 $ 353 $ 0 $ 0 $ 24 $ 28 ' '
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Restructuring Program Restructuring Costs per Segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 36 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Restructuring and Related Cost [Line Items] ' '
Restructuring charges $ 158 $ 2,800
Beauty, Hair and Personal Care ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges 36 '
Grooming ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges 13 '
Health Care ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges 2 '
Fabric Care and Home Care ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges 22 '
BABY CARE AND FAMILY CARE ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges 40 '
Corporate ' '
Restructuring and Related Cost [Line Items] ' '
Restructuring charges $ 45 [1] '
[1] Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities.
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Restructuring Program Restructuring (Additional Information) (Details) (USD $)
3 Months Ended 36 Months Ended 3 Months Ended 36 Months Ended 39 Months Ended 3 Months Ended 36 Months Ended 39 Months Ended 3 Months Ended 36 Months Ended 3 Months Ended 36 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Jun. 30, 2016
Scenario, Forecast [Member]
Sep. 30, 2014
Minimum [Member]
Sep. 30, 2014
Maximum [Member]
Sep. 30, 2014
Selling, General and Administrative Expense [Member]
Sep. 30, 2014
Separations
employee
Jun. 30, 2014
Separations
Sep. 30, 2014
Separations
employee
Sep. 30, 2014
Non-manufacturing overhead personnel [Member]
employee
Jun. 30, 2014
Non-manufacturing overhead personnel [Member]
employees
Sep. 30, 2014
Non-manufacturing overhead personnel [Member]
employee
Sep. 30, 2014
Asset-Related Costs
Jun. 30, 2014
Asset-Related Costs
Sep. 30, 2014
Other Costs
Jun. 30, 2014
Other Costs
Restructuring and Related Cost, Amounts Historically Incurred ' ' ' $ 250,000,000 $ 500,000,000 ' ' ' ' ' ' ' ' ' ' '
Restructuring and Related Cost, Expected Cost ' ' 4,500,000,000 ' ' ' ' ' ' ' ' ' ' ' ' '
Restructuring and Related Cost, Number of Positions Eliminated ' ' ' ' ' ' ' ' ' ' 9,300 ' ' ' ' '
Restructuring charges $ 158,000,000 $ 2,800,000,000 ' ' ' $ 47,000,000 $ 81,000,000 $ 1,500,000,000 ' ' ' ' $ 50,000,000 $ 666,000,000 $ 27,000,000 $ 680,000,000
Restructuring and Related Cost, Number of Severance Packages Executed ' ' ' ' ' ' 650 ' 10,130 190 ' 6,470 ' ' ' '
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Commitments and Contingencies (Details) (Estimated Obligation [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Estimated Obligation [Member] '
Loss Contingencies [Line Items] '
Reserves for potential fines for competition law violations $ 209
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Commitments and Contingencies Commitment and contingencies (additional information) (Details)
3 Months Ended
Sep. 30, 2014
taxable_jurisdiction
Loss Contingencies [Line Items] '
Number of Taxable Jurisdictions 140
Minimum [Member] '
Loss Contingencies [Line Items] '
Number of Audits Typically Underway 50
Maximum [Member] '
Loss Contingencies [Line Items] '
Number of Audits Typically Underway 60
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DISCONTINUED OPERATIONS - ADDITIONAL INFORMATION (DETAILS) (Pet Care Business, Mars, USD $)
In Billions, unless otherwise specified
Jul. 31, 2014
Pet Care Business | Mars '
Consideration received $ 2.9
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DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS (DETAILS) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Net earnings from discontinued operations $ 17 $ 18
Pet Care Business ' '
Net sales 163 375
Earnings from discontinued operations 19 31
Income tax expense (6) (13)
Gain on sale of discontinued operation 193 0
Income tax benefit (expense) on sale (189) 0
Net earnings from discontinued operations $ 17 $ 18
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DISCONTINUED OPERATIONS - MAJOR COMPONENTS OF ASSETS AND LIABILITIES (Details) (Pet Care Business, USD $)
In Millions, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Pet Care Business ' '
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] ' '
Inventories $ 38 $ 122
Prepaid expenses and other current assets 3 14
Property, plant and equipment, net 93 441
Goodwill and intangible assets, net 0 2,258
Other noncurrent assets 0 14
Total assets held for sale 134 2,849
Accounts payable 4 63
Accrued and other liabilities 5 13
Noncurrent deferred tax liabilities 0 584
Total liabilities held for sale $ 9 $ 660
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