OREANDA-NEWS. The Procter & Gamble Company (NYSE:PG) reported first quarter fiscal year 2017 net sales of $16.5 billion, unchanged versus the prior year. Organic sales increased three percent. Organic sales increased in all five business segments driven by low-to-mid single digit organic volume growth in all segments. Diluted net earnings per share were $0.96, an increase of five percent versus the prior year. Core earnings per share were $1.03, an increase of five percent versus the prior year. Currency-neutral core EPS increased 12% versus the prior year. Reported operating profit margin was unchanged. Core operating profit margin increased 20 basis points as improvement in core gross margin was partially offset by an increase in core SG&A costs as a percent of net sales.

Operating cash flow was $3.0 billion for the quarter. Free cash flow productivity was 85%. The Company repurchased $1 billion of common stock and returned $1.9 billion of cash to shareholders as dividends.

“Our first quarter results mark a good start to the fiscal year,” said Chairman, President and Chief Executive Officer David Taylor. “We delivered broad-based organic sales growth improvement across product categories and markets, as well as strong cost savings. Earlier this month, we completed the last major step in P&G’s portfolio transformation with the Beauty Brands divestiture to Coty Inc. We are now focusing all our efforts on 10 large, structurally attractive categories where P&G holds leading positions. We’re pleased with the progress we’re making, but there is still more work to do to get back to the levels of balanced top- and bottom-line growth and cash generation that will consistently put P&G shareholder value creation among the best in our industry.”

July - September Quarter Discussion

Net sales in the first quarter of fiscal year 2017 were $16.5 billion, unchanged versus prior year, including a negative three percent impact from foreign exchange. Organic sales increased three percent driven by a three percent increase in organic shipment volume. All-in volume increased two percent including the impacts of minor brand divestitures and lost sales to Venezuelan subsidiaries.

July - September 2016

      

Foreign

                        

Organic

  

Organic

Net Sales Drivers*

  

Volume

  

Exchange

  

Price

  

Mix

  

Other**

  

Net Sales

        

Volume

  

Sales
Beauty   (2)%   (2)%   1%   1%   1%   (1)%         2%   3%
Grooming   —%   (3)%   1%   —%   1%   (1)%         3%   3%
Health Care   5%   (3)%   1%   1%   —%   4%         5%   7%
Fabric & Home Care   2%   (2)%   (1)%   1%   1%   1%         4%   4%
Baby, Feminine & Family Care   3%   (3)%   (1)%   (1)%   1%   (1)%         4%   2%
Total P&G   2%   (3)%   —%   —%   1%   —%         3%   3%

* Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
** Other includes the sales mix impact of acquisitions/divestitures and rounding impacts necessary to reconcile volume to net sales.

  • Beauty segment organic sales increased three percent versus year ago behind higher organic volume and increased pricing in both Hair Care and Skin & Personal Care. Organic sales increased in Skin & Personal Care due to the continued strong growth of the super-premium SK-II brand. Hair Care growth was driven by mid-single-digit organic sales growth on both Pantene and Head & Shoulders which was partially offset by declines of smaller brands.
  • Grooming segment organic sales increased three percent due to strong innovation-driven organic volume growth in both Shave Care and Appliances. Organic sales increased low single digits in Shave Care and mid-single digits in Appliances.
  • Health Care segment organic sales increased seven percent driven by double-digit growth in Personal Health Care from innovation and pricing. Oral Care organic sales grew mid-single digits due to broad-based volume growth and favorable product mix from power toothbrushes and pricing.
  • Fabric & Home Care segment organic sales increased four percent versus year ago driven by mid-single-digit growth in both Fabric Care and Home Care. Fabric Care organic sales growth was led by high single-digit growth in developed markets behind product innovation and marketing investments. Home Care delivered mid-single-digit organic sales growth in developed and developing markets behind the expansion of product innovation.
  • Baby, Feminine & Family Care segment organic sales increased two percent driven by mid-single-digit organic volume growth in all three businesses. Baby Care organic sales increased low single digits behind market growth, product innovation and consumer value corrections. Feminine Care organic sales increased low single digits behind mid-single-digit volume growth in both developed and developing markets. Family Care organic sales increased low single digits driven by new product innovation.

Diluted net earnings per share from continuing operations were $1.00, an increase of four percent over the base period. Diluted net earnings per share were $0.96, an increase of five percent versus the prior year. Current year results included a $0.04 per share loss from discontinued operations and non-core restructuring costs of $0.03 per share. Core earnings per share, which exclude non-core restructuring charges and the results of discontinued operations, were $1.03, an increase of five percent versus the prior year. Excluding the impact of foreign exchange, currency-neutral core earnings per share increased 12% for the quarter.

Reported gross margin increased 30 basis points, including a 20 basis point increase in non-core restructuring charges. Core gross margin improved 50 basis points, including 80 basis points of negative foreign exchange impacts. On a currency-neutral basis, core gross margin increased 130 basis points, driven by 190 basis points of productivity cost savings and 20 basis points of volume growth leverage. These benefits more than offset headwinds from unfavorable mix, innovation and capacity investments and commodity cost increases.

Selling, general and administrative expense (SG&A) as a percent of sales increased 20 basis points on a reported basis versus the prior year, including a 10 basis point net benefit from a year-on-year decline in non-core restructuring charges. Core SG&A as a percentage of sales increased 40 basis points, including 30 basis points of unfavorable foreign exchange impacts. On a currency-neutral basis, core SG&A was up 10 basis points versus the prior year as increased advertising and sampling investments were partially offset by productivity savings in overhead and marketing costs.

Reported operating profit margin was unchanged. Core operating profit margin increased 20 basis points versus the prior year, including 100 basis points of foreign exchange impacts. On a currency-neutral basis, core operating profit margin increased 120 basis points driven by productivity cost savings of 270 basis points for the quarter.

Fiscal Year 2017 Guidance

P&G said it is maintaining its projection for organic sales growth of approximately two percent for fiscal 2017. The Company expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by about one percentage point. As a result, P&G continues to estimate all-in sales growth of about one percent for fiscal 2017.

The Company also maintains its expectation for core earnings per share growth of mid-single digits versus fiscal 2016 core EPS of $3.67. All-in GAAP earnings per share are expected to increase 45% to 50% versus fiscal year 2016 GAAP EPS of $3.69. The fiscal 2017 GAAP EPS estimate includes approximately $0.10 per share of non-core restructuring costs and $0.13 per share of charges related to early debt retirement that was initiated earlier this month. Also included in GAAP EPS is a significant gain from the divestiture of 41 beauty brands to Coty Inc. The exact earnings gain from the transaction with Coty, which closed October 1, 2016, will be reported in the second quarter results.

About Procter & Gamble

P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. 

 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
     
    Three Months Ended September 30
    2016   2015   % Chg
NET SALES   $ 16,518     $ 16,527     — %
COST OF PRODUCTS SOLD   8,102     8,152     (1 )%
GROSS PROFIT   8,416     8,375     — %
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE   4,645     4,607     1 %
OPERATING INCOME   3,771     3,768     — %
INTEREST EXPENSE   131     140     (6 )%
INTEREST INCOME   35     44     (20 )%
OTHER NON-OPERATING INCOME/(LOSS), NET   63     (18 )   N/A
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES   3,738     3,654     2 %
INCOME TAXES ON CONTINUING OPERATIONS   863     877     (2 )%
NET EARNINGS FROM CONTINUING OPERATIONS   2,875     2,777     4 %
NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS   (118 )   (142 )   N/A
NET EARNINGS   2,757     2,635     5 %
LESS: NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTERESTS   43     34     26 %
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE   $ 2,714     $ 2,601     4 %
             
EFFECTIVE TAX RATE   23.1 %   24.0 %    
             
BASIC NET EARNINGS PER COMMON SHARE:*            
EARNINGS FROM CONTINUING OPERATIONS   $ 1.03     $ 0.98     5 %
EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS   $ (0.04 )   $ (0.05 )   N/A
BASIC NET EARNINGS PER COMMON SHARE   $ 0.99     $ 0.93     6 %
DILUTED NET EARNINGS PER COMMON SHARE:*            
EARNINGS FROM CONTINUING OPERATIONS   $ 1.00     $ 0.96     4 %
EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS   $ (0.04 )   $ (0.05 )   N/A
DILUTED NET EARNINGS PER COMMON SHARE   $ 0.96     $ 0.91     5 %
DIVIDENDS PER COMMON SHARE   $ 0.6700     $ 0.6630      
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING   2,822.9     2,867.5      
             
COMPARISONS AS A % OF NET SALES           Basis Pt Chg
GROSS MARGIN   51.0%   50.7%   30
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE   28.1%   27.9%   20
OPERATING MARGIN   22.8%   22.8%   —
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES   22.6%   22.1%   50
NET EARNINGS FROM CONTINUING OPERATIONS   17.4%   16.8%   60
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE   16.4%   15.7%   70

* 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)
Consolidated Earnings Information
     
    Three Months Ended September 30, 2016
        % Change   Earnings/(Loss) from   % Change   Net Earnings/(Loss)   % Change
        Versus Year   Continuing Operations   Versus Year   from Continuing   Versus Year
    Net Sales   Ago   Before Income Taxes   Ago   Operations   Ago
Beauty   $ 2,996   (1 )%   $ 783     (5 )%   $ 592   (5 )%
Grooming   1,658   (1 )%   529     6 %   415   6 %
Health Care   1,861   4 %   496     11 %   320   1 %
Fabric & Home Care   5,302   1 %   1,129     1 %   728   (3 )%
Baby, Feminine & Family Care   4,595   (1 )%   1,045     (6 )%   697   (7 )%
Corporate   106   (1 )%   (244 )   N/A   123   N/A
Total Company   $ 16,518   — %   $ 3,738     2 %   $ 2,875   4 %
     
    Three Months Ended September 30, 2016
    (Percent Change vs. Year Ago)*
    Volume with   Volume Excluding                    
    Acquisitions &   Acquisitions &   Foreign               Net Sales
    Divestitures   Divestitures   Exchange   Price   Mix   Other**   Growth
Beauty   (2)%   2%   (2)%   1%   1%   1%   (1)%
Grooming   —%   3%   (3)%   1%   —%   1%   (1)%
Health Care   5%   5%   (3)%   1%   1%   —%   4%
Fabric & Home Care   2%   4%   (2)%   (1)%   1%   1%   1%
Baby, Feminine & Family Care   3%   4%   (3)%   (1)%   (1)%   1%   (1)%
Total Company   2%   3%   (3)%   —%   —%   1%   —%

* Net Sales percentage changes are approximations based on quantitative formulas that are consistently applied.
** Other includes the sales mix impact of acquisitions/divestitures and rounding impacts necessary to reconcile volume to net sales.

 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

(Amounts in Millions Except Per Share Amounts)
Consolidated Statements of Cash Flows
     
    Three Months Ended September 30
    2016     2015
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   $ 7,102       $ 6,836  
OPERATING ACTIVITIES          
NET EARNINGS   2,757       2,635  
DEPRECIATION AND AMORTIZATION   728       731  
SHARE-BASED COMPENSATION EXPENSE   44       67  
DEFERRED INCOME TAXES   (177 )     89  
GAIN ON SALE OF BUSINESSES   (75 )     (7 )
GOODWILL AND INTANGIBLE ASSET IMPAIRMENT CHARGES   —       402  
CHANGES IN:          
ACCOUNTS RECEIVABLE   (424 )     (368 )
INVENTORIES   (287 )     (519 )
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES   298       298  
OTHER OPERATING ASSETS & LIABILITIES   135       141  
OTHER   26       69  
TOTAL OPERATING ACTIVITIES   3,025       3,538  
INVESTING ACTIVITIES          
CAPITAL EXPENDITURES   (684 )     (532 )
PROCEEDS FROM ASSET SALES   183       38  
ACQUISITIONS, NET OF CASH ACQUIRED   (14 )     —  
PURCHASES OF SHORT-TERM INVESTMENTS   (631 )     (494 )
PROCEEDS FROM SALES OF SHORT-TERM INVESTMENTS   243       418  
CASH TRANSFERRED TO DISCONTINUED BEAUTY BRANDS BUSINESS   (348 )     —  
RESTRICTED CASH RELATED TO BEAUTY BRANDS DIVESTITURE   (874 )     —  
CHANGE IN OTHER INVESTMENTS   4       24  
TOTAL INVESTING ACTIVITIES   (2,121 )     (546 )
FINANCING ACTIVITIES          
DIVIDENDS TO SHAREHOLDERS   (1,851 )     (1,865 )
CHANGE IN SHORT-TERM DEBT   1,519       450  
ADDITIONS TO LONG-TERM DEBT   891       —  
REDUCTIONS OF LONG-TERM DEBT   (1,001 )     (537 )
TREASURY STOCK PURCHASES   (1,002 )     (502 )
IMPACT OF STOCK OPTIONS AND OTHER   937       483  
TOTAL FINANCING ACTIVITIES   (507 )     (1,971 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (43 )     (152 )
CHANGE IN CASH AND CASH EQUIVALENTS   354       869  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 7,456       $ 7,705  
 
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

(Amounts in Millions Except Per Share Amounts)
Condensed Consolidated Balance Sheets
         
    September 30, 2016   June 30, 2016
CASH AND CASH EQUIVALENTS   $ 7,456     $ 7,102
RESTRICTED CASH   1,870     —
AVAILABLE-FOR-SALE INVESTMENTS SECURITIES   6,615     6,246
ACCOUNTS RECEIVABLE   4,713     4,373
INVENTORIES   4,999     4,716
DEFERRED INCOME TAXES   —     1,507
PREPAID EXPENSES AND OTHER CURRENT ASSETS   2,447     2,653
CURRENT ASSETS HELD FOR SALE   7,071     7,185
TOTAL CURRENT ASSETS   35,171     33,782
PROPERTY, PLANT AND EQUIPMENT, NET   19,310     19,385
GOODWILL   44,458     44,350
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET   24,429     24,527
OTHER NONCURRENT ASSETS   5,675     5,092
TOTAL ASSETS   $ 129,043     $ 127,136
         
ACCOUNTS PAYABLE   $ 9,024     $ 9,325
ACCRUED AND OTHER LIABILITIES   8,032     7,449
CURRENT LIABILITIES HELD FOR SALE   3,130     2,343
DEBT DUE WITHIN ONE YEAR   12,215     11,653
TOTAL CURRENT LIABILITIES   32,401     30,770
LONG-TERM DEBT   18,910     18,945
DEFERRED INCOME TAXES   8,515     9,113
OTHER NONCURRENT LIABILITIES   10,266     10,325
TOTAL LIABILITIES   70,092     69,153
TOTAL SHAREHOLDERS' EQUITY   58,951     57,983
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 129,043     $ 127,136
               

The Procter & Gamble Company

Exhibit 1: Non-GAAP Measures

In accordance with the SEC's Regulation G, the following provides definitions of the non-GAAP measures used in Procter & Gamble's October 25, 2016 earnings release and the reconciliation to the most closely related GAAP measure. We believe that these measures provide useful perspective of underlying business trends (i.e. trends excluding non-recurring or unusual items) and results and provide a supplemental measure of year-on-year results. The non-GAAP measures described below are used by Management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measure, but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted.

The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items:

Incremental restructuring: The Company has and continues to have an ongoing level of restructuring activities. Such activities have resulted in ongoing annual restructuring related charges of approximately $250 - $500 million before tax. Beginning in 2012 Procter & Gamble began a $10 billion strategic productivity and cost savings initiative that includes incremental restructuring activities. This results in incremental restructuring charges to accelerate productivity efforts and cost savings. The adjustment to Core earnings includes only the restructuring costs above what we believe are the normal recurring level of restructuring costs.

We do not view the above item to be part of our sustainable results and its exclusion from Core earnings measures provides a more comparable measure of year-on-year results.

Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions, divestitures and foreign exchange from year-over-year comparisons. Management believes this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis, and this measure is used in assessing achievement of management goals for at-risk compensation.

Core operating profit margin: Core operating profit margin is a measure of the Company's operating margin adjusted for items as indicated. Management believes this non-GAAP measure provides a supplemental perspective to the Company’s operating efficiency over time.

Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Management believes this non-GAAP measure provides a supplemental perspective to the Company’s operating efficiency over time.

Core EPS and currency-neutral Core EPS: Core earnings per share, or Core EPS, is a measure of the Company's diluted net earnings per share from continuing operations adjusted as indicated. Currency-neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. Management views these non-GAAP measures as a useful supplemental measure of Company performance over time.

Free cash flow: Free cash flow is defined as operating cash flow less capital spending. Free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. Management views free cash flow as an important measure because it is one factor used in determining the amount of cash available for dividends and discretionary investment.

Free cash flow productivity: Free cash flow productivity is defined as the ratio of free cash flow to net earnings. Management views free cash flow productivity as a useful measure to help investors understand P&G’s ability to generate cash. Free cash flow productivity is used by management in making operating decisions, allocating financial resources and for budget planning purposes. The Company's long-term target is to generate annual free cash flow productivity at or above 90 percent.

   
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Reconciliation of Non-GAAP Measures
   
Three Months Ended September 30, 2016  
    AS REPORTED   DISCONTINUED   INCREMENTAL       NON-GAAP
    (GAAP)   OPERATIONS   RESTRUCTURING   ROUNDING   (CORE)
COST OF PRODUCTS SOLD   8,102     —     (111 )   —     7,991  
GROSS PROFIT   8,416     —     111     —     8,527  
GROSS MARGIN   51.0 %   — %   0.7 %   (0.1 )%   51.6 %
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE   4,645     —     23     (1 )   4,667  
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES   28.1 %   — %   0.1 %   0.1 %   28.3 %
OPERATING INCOME   3,771     —     88     1     3,860  
OPERATING PROFIT MARGIN   22.8 %   — %   0.5 %   0.1 %   23.4 %
INCOME TAX ON CONTINUING OPERATIONS   863     —     15     1     879  
NET EARNINGS ATTRIBUTABLE TO P&G   2,714     118     73     —     2,905  
EFFECTIVE TAX RATE   23.1 %   — %   (0.1 )%   — %   23.0 %
                   

Core EPS:

  
DILUTED NET EARNINGS PER COMMON SHARE*   0.96     0.04     0.03     —     1.03  
    CURRENCY IMPACT TO CORE EARNINGS   0.07  
    CURRENCY-NEUTRAL CORE EPS   1.10  

* Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble.

       
CHANGE VERSUS YEAR AGO      
CORE GROSS MARGIN   50   BPS
CORE SELLING GENERAL & ADMINISTRATIVE EXPENSE AS A % OF NET SALES   40   BPS
CORE OPERATING PROFIT MARGIN   20   BPS
CORE EFFECTIVE TAX RATE   (90 ) BPS
CORE EPS   5 %  
CURRENCY-NEUTRAL CORE EPS   12 %  
         
   
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Reconciliation of Non-GAAP Measures
 
Three Months Ended September 30, 2015
    AS REPORTED   DISCONTINUED   INCREMENTAL       NON-GAAP
    (GAAP)   OPERATIONS   RESTRUCTURING   ROUNDING   (CORE)
COST OF PRODUCTS SOLD   8,152     —     (72 )   —     8,080  
GROSS PROFIT   8,375     —     72     —     8,447  
GROSS MARGIN   50.7 %   — %   0.4 %   — %   51.1 %
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE   4,607     —     —     —     4,607  
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE AS A % OF NET SALES   27.9 %   — %   — %   — %   27.9 %
OPERATING INCOME   3,768     —     72     —     3,840  
OPERATING PROFIT MARGIN   22.8 %   — %   0.4 %   — %   23.2 %
INCOME TAX ON CONTINUING OPERATIONS   877     —     14     1     892  
NET EARNINGS ATTRIBUTABLE TO P&G   2,601     142     58     (1 )   2,800  
EFFECTIVE TAX RATE   24.0 %   — %   (0.1 )%   — %   23.9 %
                    Core EPS:  
DILUTED NET EARNINGS PER COMMON SHARE*   0.91     0.05     0.02     —     0.98  

* Diluted net earnings per share are calculated on Net earnings attributable to Procter & Gamble.

                       

Organic sales growth:
                       
         

Foreign Exchange

    

Acquisition/Divestiture

    

Organic Sales

July - September 2016

  

Net Sales Growth

    

Impact

    

Impact*

    

Growth
Beauty   (1)%     2%     2%     3%
Grooming   (1)%     3%     1%     3%
Health Care   4%     3%     —%     7%
Fabric & Home Care   1%     2%     1%     4%
Baby, Feminine & Family Care   (1)%     3%     —%     2%
Total P&G   —%     3%     —%     3%
                         
               

Combined Foreign Exchange &

      

Organic Sales

Total P&G

      

Net Sales Growth

      

Acquisition/Divestiture Impact*

      

Growth
FY 2017                        
(Estimate)       1%       1%       2%

* Acquisition/Divestiture Impact includes the mix impacts of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.

                   

Core EPS:
                   
     

Diluted EPS

            

Total P&G

    

Growth

    

Impact of Incremental Non-Core Items*

    

Core EPS Growth
FY 2017                 Up mid-single
(Estimate)     Up 45% to 50%     (41%) to (44%)     digits

* Includes change in discontinued operations (includes anticipated gain on sale of Beauty Brands).

 

Free cash flow and free cash flow productivity (dollar amounts in millions):
 
Three Months Ended September 30, 2016
                       

Free Cash Flow

Operating Cash Flow

    

Capital Spending

    

Free Cash Flow

    

Net Earnings

    

Productivity
$3,025     $(684)     $2,341     $2,757     85%