Free Cash Flow to The Firm (FCFF)
Procter & Gamble Co., FCFF calculation
USD $ in millions
| 12 months ended | Jun 30, 2011 | Jun 30, 2010 | Jun 30, 2009 | Jun 30, 2008 | Jun 30, 2007 | Jun 30, 2006 | |
|---|---|---|---|---|---|---|---|
 |
Net earnings | 11,797 | 12,736 | 13,436 | 12,075 | 10,340 | 8,684 |
|
Add: Net noncash charges | 3,193 | 1,123 | 1,847 | 5,462 | 4,643 | 3,110 |
|
Less: Total change in operating assets and liabilities | (1,759) | 2,213 | (364) | (1,723) | (1,548) | (419) |
|
Total operating activities | 13,231 | 16,072 | 14,919 | 15,814 | 13,435 | 11,375 |
|
Add: Cash payments for interest, net of tax | 626 | 896 | 943 | 1,031 | 935 | 731 |
|
Less: Capital expenditures | (3,306) | (3,067) | (3,238) | (3,046) | (2,945) | (2,667) |
|
Add: Proceeds from asset sales | 225 | 3,068 | 1,087 | 928 | 281 | 882 |
|
Less: Assets acquired through non-cash capital leases | (13) | (20) | (8) | (13) | (41) | (363) |
|
Free cash flow to the firm (FCFF) | 10,763 | 16,949 | 13,703 | 14,714 | 11,665 | 9,958 |
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Procter & Gamble Co.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Procter & Gamble Co.'s FCFF increased from 2009 to 2010 but then declined significantly from 2010 to 2011. |