Procter & Gamble Co. (PG)

Income Statement

Low level of difficulty

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Procter & Gamble Co., consolidated income statement

US$ in millions

12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
Net sales	67,684	66,832	65,058	65,299	76,279	83,062
Cost of products sold	(34,768)	(34,268)	(32,535)	(32,909)	(38,876)	(42,460)
Gross profit	32,916	32,564	32,523	32,390	37,403	40,602
Selling, general and administrative expense	(19,084)	(18,853)	(18,568)	(18,949)	(23,585)	(25,314)
Goodwill and indefinite-lived intangible asset impairment charges	(8,345)	—	—	—	—	—
Venezuela deconsolidation charge	—	—	—	—	(2,028)	—
Operating income	5,487	13,711	13,955	13,441	11,790	15,288
Interest expense	(509)	(506)	(465)	(579)	(626)	(709)
Interest income	220	247	171	182	151	100
Other non-operating income (expense), net	871	(126)	(404)	325	531	206
Earnings from continuing operations before income taxes	6,069	13,326	13,257	13,369	11,846	14,885
Income taxes on continuing operations	(2,103)	(3,465)	(3,063)	(3,342)	(2,916)	(3,178)
Net earnings from continuing operations	3,966	9,861	10,194	10,027	8,930	11,707
Net earnings (loss) from discontinued operations	—	—	5,217	577	(1,786)	78
Net earnings	3,966	9,861	15,411	10,604	7,144	11,785
Net earnings attributable to noncontrolling interests	(69)	(111)	(85)	(96)	(108)	(142)
Net earnings attributable to Procter & Gamble	3,897	9,750	15,326	10,508	7,036	11,643
Preferred dividends, net of tax	(263)	(265)	(247)	(255)	(259)	(253)
Net earnings attributable to P&G available to common shareholders	3,634	9,485	15,079	10,253	6,777	11,390

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

Income statement item	Description	The company
Net sales	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Procter & Gamble Co.’s net sales increased from 2017 to 2018 and from 2018 to 2019.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Procter & Gamble Co.’s operating income declined from 2017 to 2018 and from 2018 to 2019.
Earnings from continuing operations before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Procter & Gamble Co.’s earnings from continuing operations before income taxes increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
Net earnings attributable to Procter & Gamble	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Procter & Gamble Co.’s net earnings attributable to Procter & Gamble declined from 2017 to 2018 and from 2018 to 2019.