Trademarks Patents. own licenses trademarks businesses. cover product formulation processes. trademarks important marketing branding. major trademarks registered. success protection trademarks patents licenses.


Competitive Condition. markets products highly competitive. compete similar global competitors. markets compete against branded private-label brands. well positioned leadership market share position. support products advertising promotions marketing vehicles awareness sales force. combination


efficient marketing. quality performance value packaging.


. Company laws. products operations federal agencies. Food Drug Administration Environmental Protection Agency Occupational Safety Health Administration Federal Trade Commission Consumer Product Safety Commission. anti-corruption. Foreign Corrupt Practices Act antitrust competition suppliers customers competitors government officials.


foreign jurisdictions similar operations products. subject to laws environmental sustainability non-financial reporting labor employment trade taxation data privacy including European Data Protection Regulation similar regulations United States.


Company has compliance programs experts business laws regulations made plan expenditures for compliance. expect suppliers consultants third parties share commitment compliance policies procedures manage relationships lesser control operations. expect expenditures for compliance on capital expenditures earnings competitive position fiscal year 2024.


Human Capital. employees competitive advantage. actions critical success business. retain competitive compensation benefits career development culture equal opportunity.


Board Directors Compensation policies talent diversity equality inclusion compensation principles practices. evaluates compensation plans senior executives.


June 30, 2023 Company 107,000 1% business growth. excluding interns co-ops contractors joint. 49% manufacturing 27% States. 41% global women 30%. multicultural.


attracting developing retaining skilled talent universities market. recruit best universities select top talent. job experiences training skill development opportunities. develop-within model holistic growth engagement.


consumer products company workforce reflect diversity. inclusive work environment innovation consumers. aspire equal gender representation globally management leadership levels. U. 40% multicultural representation management leadership levels.


Market-competitive compensation reward programs attract talent. rewards programs paying performance competitively long-term success incentive programs. offer competitive benefit programs retirement plans health insurance diverse workforce.


. business strategy products. balanced growth value creation sustainability objectives. 2021 2040 net zero Climate Transition Action


Plan reducing greenhouse gas emissions scopes 1 2 3. includes-term net zero emissions 1 2 interim goals. renewable electricity reducing petroleum plastic responsible sourcing forest commodities water usage water restoration projects.


use Global Reporting Initiative Sustainability Accounting Standards Board Task Force Climate-related Financial Disclosures sustainability disclosures Annual Report Proxy Statement sustainability reports. thresholds differ federal securities laws Commission’s rules Report. References sustainability reports website informational Annual Report Form 10-K. https://pginvestor.


discuss expectations future performance events business objectives Form 10-K quarterly annual reports Form 8-K press releases communications. statements-looking based financial data business plans outdated incomplete. no obligation update statements new information events law. statements uncertain events differ expectations.


discussion business operations financial position future performance. read with Management's Discussion Analysis Consolidated Financial Statements Notes. not inclusive important factors evaluating expectations. cause future results differ statements historical trends.


business risks operations sales international markets currency fluctuations volatility.


global company operations 70 countries products 180. hold assets liabilities generate sales pay expenses currencies. operations outside. generate 50% annual net sales. Fluctuations exchange rates reduce. dollar sales earnings cash. increase supply costs. competitiveness business results. foreign currency debt derivatives capital markets activities. cash appreciation foreign currency rates. discriminatory fiscal trade policies tariffs affect results. Results Operations Cash Flow Financial Condition Liquidity MD&A Consolidated Financial Statements.


businesses maintain local balances countries import controls Egypt Argentina Pakistan. results financial condition cash flows manage controls repatriate earnings tariffs quotas exchange price controls trade barriers restrictions.


business operations employees affected geopolitical conflicts political volatility trade controls labor market disruptions crises. political instability war economic instability sovereign risk default deterioration creditworthiness local governments emerging markets.


Uncertain economic social conditions impact demand products financial hardship.


business impacted reduced demand local global economic social disruptions. disruptions slow-down


recession inflationary pressures reduced market growth tighter credit markets shift government policies social unrest deterioration economic relations negative consumer sentiment non-local products inability transactions. economic conditions cause suppliers distributors contractors partners financial difficulties materials services business. Customers suffer financial hardships accounts uncollectible longer collection cycles. sales income cash flow share repurchase dividend payments.


markets banking partners ratings reduce access liquidity.


disruption credit markets downgrade credit rating increase borrowing costs capital credit markets affect liquidity capital resources increase cost capital. rely on top-tier banking partners risks for access credit collection payment supply finance. disruption credit facilities affect cash flows.


impact business financial results.


political markets products geopolitical affect business financial results. elections referendums sanctions uncertainty policies laws regulations sanctions taxes tariffs import export controls movement goods materials services capital data people. implications exchange rate fluctuations tariffs trade barriers market contraction affect cash flows.


Company operates global business sales manufacturing distribution research development growth. geopolitical tensions trade controls business sales responses sanctions tariffs limitations impact business financial condition results cash flows.


war Russia Ukraine business financial results.


war Russia Ukraine impacted operations. March 2022 Company reduced product portfolio discontinued investments suspended media advertising activity Russia. Future impacts difficult uncertainty. Ukraine possibility damage destruction manufacturing facilities distribution centers customers. operate manufacturing source raw materials ship products. Russia reduce discontinue operations controls restrictions supply transportation challenges. loss impairments write-downs assets working capital.


war Russia Ukraine risk factors Part I Item 1A foreign exchange volatility financial credit markets energy information security technology incident cost commodity cost costs compliance laws regulations. impact impact business financial results.


negative impacts sales earnings cash flows economic recessions inflationary energy supply chain cost increases geographic proximity war.


results global supply chain.


meet needs cost targets manufacturing supply arrangements supply chain optimizations plant


arrangements. loss disruption manufacturing supply arrangements labor disputes manufacturing sites information data systems cybersecurity incidents procure raw input materials labor changes trade policy natural disasters extreme weather war terrorism disease outbreaks external factors product supply impact business financial condition results cash flows.


businesses face cost results.


costs subject fluctuations due commodities petroleum-derived raw packaging materials labor transportation energy pension healthcare. Inflation input costs. business results depend fluctuations pricing cost saving decisions margins market share. Failure consumer reaction impact results cash flows.


achieve business objectives local global competitors markets channels.


consumer products industry competitive. compete against global local competitors. competitive pressures challenges maintaining sales profit margins. respond to retail trends pricing promotional incentives delivery windows trade terms. evolving sales channels business models affect preferences market dynamics shopping online entry hard discounter channels. Failure respond e-commerce mobile commerce impact cash flows.


significant change relationships demand products business.


sell products via retail merchandisers e-commerce grocery membership club drug stores department stores distributors wholesalers specialty beauty stores high-frequency stores pharmacies electronics stores professional channels. success depends relationships trade terms acceptable aligned with pricing profitability targets. concentration cost margin pressure performance agreement key customer trade terms. inventory shelf space non-branded delivery windows business disruption.


reputation Company brands erodes impact financial results.


Company's reputation brands relationships with stakeholders consumers customers suppliers. quality safety products critical to business. brands worldwide recognition financial success depends on. if marketing plans product initiatives image. cash flows if due recall defects impurities misuse perceptions negative perceptions packaging lack recyclability environmental impacts concerns labor equality inclusion privacy lapses data breaches product tampering counterfeit products. negative social media adverse publicity reputation. If issues safety quality ingredients efficacy environmental social impacts cash flows suffer. Company devotes to citizenship efforts corporate values business reputation programs ethics corporate responsibility strong communities equality inclusion environmental sustainability. programs


initiatives goals impacted by actions third parties authorities suppliers vendors customers. perceptions programs vary affect business. programs not executed negative publicity Company's reputation.


rely third parties risk.


scale business rely on third parties suppliers manufacturers distributors contractors banks joint venture partners external partners functions. third-party relationships agreements cash flows. failure obligations disruptions impact operations financial results. policies procedures lesser control operations governance compliance financial legal reputational operational risk.


significant information technology incident cybersecurity breach failure key systems networks hardware processes sites Company business reputation.


rely on technology systems networks services internet intranet sites data hosting processing facilities security systems hardware software applications platforms managed hosted provided used by third parties business. uses include managing materials •converting products selling transferring storing processing customer consumer employee vendor investor stakeholder information personal data citizens European Union residents California China Brazil reporting results financial reporting banking cash liquidity systems processing sharing confidential research business plans financial information online communications with regulatory legal tax requirements data security other processes.


evolving information security threats risk services systems networks supply chain confidentiality integrity data business operations. techniques tools tactics-attacks change difficult anticipating preventative measures mitigating harms.


IT/OT databases third-party providers’ viruses ransomware unauthorized access denial of service phishing social engineering hacking cyber-attacks. attacks outside parties hackers criminal organizations. insider actors disruptions data leakage. guarantee prevent breaches incidents breakdowns.


breach data security failure IT/OT databases business operations financial results. IT systems networks service providers fail cause outages unavailability inadvertent disclosure loss sensitive business information


personal information catastrophic disasters power outages failures improper data handling viruses phishing cyber-attacks malware ransomware security breaches employee error business continuity plans reputational competitive operational financial harm regulatory action. IT systems third damaged investment repair.


ransomware attack cybersecurity incident accessing data systems cause interruptions business remediation costs demands ransom damage reputation. events unauthorized disclosure confidential financial reputational damage lost misappropriated information. exposed to liability governmental inquiries investigations regulatory enforcement fines penalties legal claims remediation costs.


upgrade IT/OT systems adopt new technologies. cybersecurity breaches failures order ship orders process payments information integrity loss issues. costs consequences remediation measures impact cash flows.


manage demand supply challenges future disease health concerns.


business impacted by fear exposure disease outbreak epidemic pandemic public health concern. impacts include reductions demand volatility for caused due illness quarantine travel restrictions financial hardship shifts stockpiling pantry-loading. prolonged impacts increase difficulty business planning impact results cash flows changes political conditions markets quarantines import/export restrictions price controls governmental regulatory actions facilities travel prevent partners suppliers staffing operations.


efforts ultimate impact depends factors beyond duration severity outbreak third-party actions spread health.


growth targets product marketing operations digital marketing changing consumer habits.


consumer products company global demand brands. results developing introducing marketing new products improvements equipment manufacturing processes. success innovation acceptance trends intellectual property protections rights efficient marketing media mobile platforms privacy requirements. respond technological advances intellectual property rights competitors vendors. Failure competitive consumer habits position impact financial condition cash flows.


manage divestiture activities.


company consumer brands business model includes acquisition joint venture divestiture. manage impacts business objectives. financial results impacted loss earnings divested brands dissolution joint ventures. operations cash flows impacted by acquisitions


venture activities changes cash cause assets below book value deliver expected cost growth synergies integration collaboration challenges goodwill intangible assets.


business results productivity change attracting talent succession planning.


financial projections assume productivity cost savings staffing adjustments departures. Failure business growth impact results cash flows. organizational change management transitions motivation retention key employees critical success. Factors employees include morale reputation competition availability. success depends on identifying developing retaining key employees. includes capabilities in growth markets leadership succession plans.


manage compliance laws regulations matters U. S. abroad.


business subject to laws regulations countries intellectual property product liability composition packaging content corporate responsibility disposal marketing antitrust competition privacy data protection environmental climate water waste impacts employment healthcare anti-bribery anti-corruption internal controls record-keeping trade tariffs sanctions export tax accounting financial reporting. increasing attention environmental social governance reporting climate change waste production water usage human capital labor risk oversight expand complexity. changing laws regulations policies increased enforcement create challenges alter environment increase costs complexities compliance investments manufacturing sales business impact cash flows. unable impact reputation business results. subject to inquiries investigations claims proceedings requests information outcomes harm business. Failure manage regulatory legal matters without liability damage impact financial condition results cash flows.matters result fines costs accrued impact results operations financial position.


tax laws resolutions financial results.


Company subject taxation U. foreign jurisdictions. Changes tax laws. December 2017. government enacted tax Tax Cuts Jobs Act. changes. broad complex. current administration federal income tax reform proposed. corporate income tax rate elimination investment incentives. non-U. earnings. proposals controversial difficult. impact significant.


international tax norms trade evolution. Base Erosion Profit Shifting project 140 countries Challenges Digitalization Economy. project extends beyond digital businesses multinational businesses redefining taxation establishing global minimum tax. December 2022 European Union approved directive 15% global minimum tax laws years December 31, 2023.


non-EU countries proposed legislation global minimum tax. details enactment timing uncertain.


early assess impact changes tax laws regulations revised financial condition results cash flows.


subject review audit foreign tax authorities. tax positions outcome audits litigation tax treatment divestiture transactions 2017 differ tax Consolidated Financial Statements impact cash flows.


. 24 sites 18 states. 80 34 countries. businesses. Beauty 23 Grooming 17 Health Care 20 Fabric Home 37 Baby Family 37. headquarters Cincinnati Ohio. offices Switzerland Panama Singapore China United Arab Emirates. service centers Costa Rica United Kingdom Philippines. sites properties equipment maintained.


Company subject legal proceedings antitrust trade product liability advertising contracts environmental patent trademark labor employment tax. SEC regulations environmental proceedings Federal monetary sanctions ($1 million. no relevant matters disclose. Note 13 Consolidated Financial Statements legal proceedings contingencies.


Company Risk Factors Part I 1A.


positions Executive Officers August 4 2023 Jon R. Moeller President Shailesh Jejurikar Operating Andre Schulten Financial Gary. Coombe Grooming Jennifer L. Davis Health Care. Fatima. Baby Gender Equality. Alexandra Keith Beauty Corporate Sustainability Sundar Raman Fabric Home Care Victor Aguilar Marc S. Pritchard Brand Balaji Purushothaman Human Resources Susan Street Whaley Legal Secretary


Executive Officers employed Company five years.


. Moeller President Executive Officer Vice Chairman Financial Officer 2019 Chief Financial Officer 2017).


. Jejurikar Chief Executive Officer Fabric Home Care President Fabric P&G Brand-Building Officer 2018).


. Schulten Senior Vice President Baby Care 2021 Finance Accounting 2018).


. Coombe President Selling Operations.


. Davis President Feminine Care Global Feminine Vice President Franchise Tampax 2018).


. Francisco Chief Baby Feminine Care President Global Baby Global Feminine Care 2018).


. Keith Chief Beauty 2022.


. Raman President Home Care P&G Fabric Care North Vice President - 2019.


. Aguilar served Senior Vice President Research Corporate Function Global Fabric Care Sector Leader Home Care (2014 - 2019).


. Purushothaman Senior Vice President Resources Rewards 2022 Beauty Grooming Family Care 2020.


. Whaley Senior Vice President General Counsel North Business Units Vice President Global Units 2019.


Registrant Equity Purchases Securities


Shares Purchased Price Paid Share Plans Programs Dollar Value Shares Repurchase Program 4/1/2023 - 4/30/2023 5/1/2023 - 5/31/2023,324$149. 95.


transactions trade date open market large institutions. excludes shares withheld tax option. Company administers cashless exercises repurchase stock.


price excludes commission.


April 21, 2023 Company reduce shares repurchases $7. 4 $8. billion compensation benefit plans. repurchases authorized Board Directors financed cash debt. $7. 4 billion. ended June 30, 2023.


Part III Item 12 Form.


P&G dividend 133 years since 1890 increased 67 since 1956. past ten years dividend increased 5%. dividends considered reviewing dividend yields profitability cash flow financing needs declared Board Directors. split-adjusted Dividends per share.


P&G New York Stock Exchange PG. June 30 2023 five million shareowners owners banks.


compares P common stock five June 30 2023 S&P 500 Stock Index S&P 500 Consumer Staples Index. $100 invested June 30 2018 dividends reinvested. $100 Company P&G S&P 500 Consumer Staples


Discussion Financial Operations


statements in report estimates projections business plans objectives results assumptions “forward-looking Private Securities Litigation Reform Act 1995 Section 27A Securities Act 1933 Section 21E Securities Exchange Act 1934. statements's Discussion Analysis “Risk "Notes 4 8 13 Consolidated Financial Statements. identified by “believe. based on expectations assumptions subject to risks uncertainties results. no obligation to update revise statements by law.


Risks statements include manage global financial risks foreign currency fluctuations pricing controls volatility local global economic volatility reduced market growth generate income cash flow share repurchases dividend payments manage disruptions credit markets banking credit rating maintain manufacturing supply arrangements optimizations plant arrangements disruption natural disasters war terrorism disease outbreaks manage cost fluctuations commodities raw materials labor transportation energy pension healthcare stay innovation intellectual property protections respond consumer habits digital marketing technological advances compete competitors sales channels prices promotional incentives trade terms manage customer relationships protect reputation brand equity issues concerns safety quality ingredients efficacy packaging supply chain practices manage financial legal reputational operational risk third-party relationships maintain third-party information technology systems networks services security managegeopolitical conditions exchange rate fluctuations market contraction manage regulatory legal requirements product liability packaging intellectual property labor employment antitrust privacy data protection tax environment due diligence risk oversight accounting financial reporting resolve matters tax laws manage divestiture joint venture activities business strategy financial objectives without impacting objectives productivity improvements cost savings organizational changes employees manage demand supply operational challenges governmental responses disease outbreak epidemics pandemics public health uncertainties sanctions effects war Russia Ukraine greenhouse gas emissions environmental sustainability priorities. risks uncertainties "Economic Conditions Uncertainties "Risk Factors Form 10-K.


Discussion Analysis Procter & Gamble's financial condition results cash flows measures. Consolidated Financial Statements Notes. 2023 Results Conditions Uncertainties Operations Results Flow Financial Condition Liquidity Accounting Policies Estimates Information


MD&A measures volume growth net sales earnings diluted earnings share operating cash flow. financial measures. organic sales growth core earnings share adjusted free cash flow productivity. Organic sales growth excluding divestitures foreign exchange. Core EPS diluted. Adjusted free cash flow operating


capital spending transitional tax U. Tax Act. Adjusted cash flow productivity ratio net earnings excluding-time items. measures provide information results trends metrics management. MD&A derivation reconciliations. GAAP measure.


Management uses market share consumption estimates performance. References consumption based online data internal estimates. market share references represent percentage sales sales. Company measures quarter fiscal year market shares lag time one two months. uses unit volume growth net sales. Organic volume growth reflects year-over-year changes volume excluding acquisitions divestitures one-time items sales.


Procter & Gamble leader goods branded quality value. products sold 180 countries merchandisers e-commerce grocery drug department distributors wholesalers high-frequency pharmacies electronics professional channels. direct. operations 70 countries.


market environment competitive global regional competitors. markets compete against branded private-label brands. product segments differentiated by price tiers super-premium mid value-tier. well positioned leadership market share.


Units Enterprise Markets Corporate Functions Global Services.


Company ten product categories five SBUs segments. Beauty Grooming Health Care Fabric Home Care Baby Feminine Family Care. SBUs brand strategy product marketing supply chain. profit Focus innovation supply Enterprise. results North America Europe China Latin America Asia Pacific India Middle East Africa.


segments product categories brand composition. Sales Earnings Categories Brands Care Shampoos Styling Aids Treatments Shoulders Herbal Essences Pantene Rejoice Care Deodorants Cleansing Old Spice Safeguard SK-II-Shave Gillette Venus Care-B Pain Relief Respiratory Vitamins Neurobion Pepto-Bismol Vicks Fabric Home Care Enhancers Laundry Additives Downy Tide Care P&G Surface Dawn Fairy Febreze. Wipes Taped Diapers Pants Pampers Discreet Tampax Care Towels Tissues Toilet Paper Charmin Puffs


sales earnings year 30 2023 Corporate.


July 2022 Grooming Sector Unit Shave Care Appliances. management team financial targets budgets reporting.


Units


global market leader hair skin care. hair care 20% market share behind Pantene Head & Shoulders. products deodorants cleansing skin care Olay top skin care 5% global market share.


global leader blades razors. share 60% behind Gillette Venus. appliances electric shavers sold Braun brand. hold 25% male electric shavers 50% female epilators.


compete oral personal. global competitors two 20% Crest Oral-B. personal leader respiratory digestive wellness vitamins analgesics Vicks Metamucil Pepto-Bismol Neurobion.


Fabric Home Care fabric laundry detergents enhancers home dishwashing liquids detergents surface cleaners air fresheners. fabric care global leader 35% Tide Ariel Downy. home care 25% Cascade Dawn Febreze Swiffer.


Baby Feminine Family Care global market leader taped diapers pants baby wipes 20% market share. Pampers. feminine care 25% Always Tampax. adult incontinence Always Discreet 10% market share. family care North American Bounty towel Charmin paper. 40% Bounty 25% Charmin.


Markets sales profit SBU innovation supply planning distribution management.


strategy accounting treasury tax governance legal services.


Business Services technology process data SBUs EMs CF consumers. world-class services P&G.


Procter & Gamble consumers competitors category shareholder return top one-third peer group. value requires balanced growth cash generation.


Company competes daily-use categories P&G strengths. portfolio ten product categories P&G positions brands technologies.


strategic choices consumers. center. superiority product performance packaging brand communication retail execution value. innovation. P&G’s lifeblood. Superior products execution drive market growth value creation share growth&G.


productivity improvement growth cash generation value creation objectives. brands product innovation supply chains advertising sales R&D programs. cost environments commodity foreign exchange impacts. objective productivity improvements cost marketing spending overhead costs capital spending.


act agility disrupting competitive industry business technologies create value.


improving effectiveness culture roles accountability compensation.


strategy superiority declared four focus areas performance. leveraging environmental sustainability products packaging innovations increasing digital acumen developing next-level supply chain productivity employee value equation gender identities races ethnicities sexual orientations ages abilities talent.


strategy long health Company shareholder return top-third peer group.


Company expects growth algorithm returns top third consumer goods group sales growth above market EPS free cash flow productivity 90%.


macroeconomic pressures growth maintain disciplined approach investing.


millions. Net sales,006,187 Operating income,134 Net earnings Procter & Gamble,653 earnings share. earnings. Cash flow,848 sales increased 2% $82. billion. Health Care Fabric Home Care Baby Feminine Family Beauty Grooming. Organic sales increased 7%. Health Care Fabric Grooming. income increased $321 million 2% $18. 1 billion operating margin. earnings decreased $55 million $14. 7 billion higher tax rate. Foreign exchange reduced earnings $1. 4 billion. earnings Procter & Gamble decreased $89 million $14. 7 billion. EPS increased 2% $5. 90 shares. flow $16. 8 billion.


Adjusted flow capital expenditures $14. billion.


Adjusted cash flow productivity earnings 95%.


discuss expectations future performance events outcomes business objectives annual quarterly reports press releases communications. statements-looking based financial data business plans out-of-date incomplete. no obligation update statements new information except required law. statements uncertain events. risk factors Part I Item 1A Form 10-K.


. products sold Latin Asia Australia half sales outside States. markets China Kingdom Canada Japan Germany 20% net sales 2023. factors geopolitical tensions. policies exchange fluctuations. market risks unstable economic civil unrest disasters debt credit currency. reduce sales margins earnings cash flows.


Costs. commodity prices transportation costs inflationary impacts productivity efforts. commodities oil-derived pulp. Volatility price costs. Disruptions energy shortages disasters labor freight constraints costs. legal regulatory requirements sustainability costs material costs investments facilities. implement cost improvement plans supply chain optimization overhead workforce optimization. Increased pricing offset cost impacts impact consumption. cost impacts impact net sales gross margin operating margin earnings cash flows.


Foreign Exchange. translation transaction exposure exchange rates. exposures impacts income statements foreign subsidiaries. Transaction exposures input costs revaluation working capital balances. weakening foreign currencies. lower net sales earnings cash flows. countries exchange rate fluctuations Argentina Brazil United Kingdom Japan Russia Turkey. fluctuations impacted sales earnings cash flows could. Increased pricing offset impacts consumption net sales gross margin operating margin earnings cash flows.


Government Policies. net sales gross margin operating margin earnings cash flows U. foreign government policies. future U. non-U. tax policy OECD/G20 Inclusive Framework Challenges Digitalization Economy. OECD project digital large multinational businesses redefining jurisdictional taxation 15% global minimum tax. sales earnings U. foreign policies environmental climate change. manage debt currency exposures countries import pricing controls Egypt Argentina Pakistan. international trade agreements North America. Changes government policies sales earnings cash flows.


Russia-Ukraine War. impacted operations. Ukraine business two manufacturing sites less 1% sales earnings year June 30 2023. Russia business includes two sites. reduced product portfolio discontinued capital investments suspended media advertising activity Russia. 2% consolidated sales earnings 2023. less 2%.


Future impacts uncertainty war duration resolution. Ukraine possibility damage destruction two manufacturing facilities. operate source materials ship products customers.


Russia reduced operations due sanctions controls legislative financial institutions supply transportation challenges. suppliers distributors retail customers impacted war operations impact sales.


negative impacts sales earnings cash flows economic recessions countries inflationary pressures supply chain cost increases geographic proximity war.


risk factors Part I Item 1A Form 10-K.


metrics net sales gross margin selling costs operating margin non-operating items income taxes net earnings. factors market growth product initiatives competitive activities marketing spending retail executions divestiture unit volume pricing actions product geographic mix foreign exchange impacts.


categories cost products SG&A variable. discussion operating focuses relative margins absolute year-over-year changes costs. primary drivers gross margin input costs pricing impacts geographic mix product mix Beauty foreign


exchange rate fluctuations manufacturing savings reinvestments scale impacts. components SG&A marketing-related non-manufacturing overhead costs. Marketing costs variable scale benefit growth marketing efficiencies. overhead costs variable scale-related impacts organization infrastructures business growth. drivers SG&A overhead marketing cost savings reinvestments inflation foreign exchange fluctuations scale impacts.


2022 MD&A Part II Item 7 Form 10-K June 30.


sales increased 2% $82. billion 2023. higher pricing favorable mix 1% offset unfavorable foreign exchange 5% 3% decrease unit volume. North America Europe. organic sales grew 7%.


sales increased Health Fabric Home Baby Beauty decreased Grooming. decreased Europe China Asia IMEA North America. increased Latin America.


Comparisons percentage net sales years June 30 Gross margin. bps Selling administrative expense. bps Operating margin. bps Earnings before taxes. Net earnings. bps Procter Gamble. bps


margin increased 50. 9% net sales. pricing 150 productivity savings.


increased commodity material costs 110 decline premium products decline super-premium SK-II brand 50 decline foreign exchange capacity start-up manufacturing product packaging investments.


SG&A increased 4% to $21. 1 billion overhead. sales increased 50 points 25. 7% overhead offset marketing spending. spending decreased 40 points sales productivity savings offset media reinvestments. costs increased 40 wage inflation cost increases offset savings. operating expenses increased 60 higher foreign exchange charges.


Productivity savings 90 SG&A sales.


margin decreased 22. 1% margin offset SG&A net sales.


expense $756 million $317 million short-term debt. income $307 million $256 million. non income $98 million $668 million loss equity gain divestiture brands.


effective tax rate increased 190 19. 7% benefits share-based compensation 50 uncertain tax positions 40 lower deductions foreign income.


income increased $321 million 2% $18. billion net sales margin.


before taxes increased $358 million $18. 4 billion operating income. Net earnings declined $55 million $14. 7 billion offset tax rate. Foreign exchange reduced earnings $1. 4 billion currencies.


Procter Gamble $89 million.


EPS increased. 2% $5. 90 earnings offset shares.


Segment results reflect information internal management reporting performance evaluation. include non-business unit costs reported in Corporate segment. apply blended statutory tax rates in segments. Eliminations results consolidated tax rate included in Corporate. See Note 2 Consolidated Financial Statements for information Corporate segment. Sales Change Drivers 2023 vs. 2022 with Acquisitions Divestitures Excluding Exchange Sales Growth Beauty Grooming Health Care Fabric & Home Care Baby, Feminine Family Care TOTAL COMPANY


sales approximations quantitative formulas.


sales acquisitions divestitures volume net sales.


millions./A Net sales$15,008,740 earnings$3,178,160 sales. 4%


sales 2% $15. billion pricing 8% 1% offset foreign exchange 5% mix 1% SK-II 1% decrease unit volume.


acquisitions divestitures foreign exchange organic sales increased 6%. market share Beauty increased. points. Care sales increased. higher pricing acquisitions foreign exchange unit volume. sales. Europe Greater China Asia Pacific. Organic sales increased 20% growth Latin America double Europe North America offset decline Greater China. market share hair care decreased half point. Personal Care sales increased. higher pricing volume offset foreign exchange. volume increase North America Latin America Greater China offset decline Asia Pacific. Organic sales increased Latin America Europe double-digit North America offset decrease Asia Pacific. market share skin care increased point.


earnings increased 1% $3. 2 billion sales offset 20 margin. decreased margin SG&A. reduction negative product mix SK commodity costs foreign exchange offset increased pricing. SG&A decreased marketing spending.


millions. Volume/A Net sales$6,419 earnings$1,461 sales. 8%. 6%


Grooming sales decreased 3% $6. 4 billion unfavorable foreign exchange 7% 3% volume mix 2% offset higher pricing. volume decrease Europe North America. organic sales increased 5% growth Latin America double Asia Pacific. market share Grooming increased 1 point.


earnings decreased 2% $1. 5 billion sales offset 20 margin. offset SG&A. decrease driven unfavorable product mix commodity cost unfavorable foreign exchange offset higher pricing productivity savings. SG&A decreased marketing spending.


millions. Volume/A Net sales$11,226,824 earnings$2,125 sales. 5%


Health Care sales 4% $11. 2 billion pricing 5% mix 4% offset foreign exchange 4% 1% unit volume. organic sales increased 8%. Global share decreased.


Care sales decreased. foreign exchange volume offset by increased pricing premium product mix. Volume decline driven by Europe North America Greater China. Organic sales increased 20% growth Latin America North America. Global market share unchanged. Health Care sales increased. North America respiratory products higher pricing unit volume increase offset unfavorable foreign exchange. Volume increase driven growth North America Latin America offset decline IMEA. Organic sales increased high North America Europe low Latin America. Global market share unchanged.


earnings increased 6% to $2. 1 billion sales 40 margin. gross margin offset SG&A. decrease driven unfavorable product mix increased commodity material costs offset increased pricing. SG&A decreased marketing spending increased overhead spending.


millions. Volume/A Net sales$28,371,556 earnings$4,828$4,386 sales. bps


Fabric Home Care sales increased 3% $28. 4 billion higher pricing 11% mix 1% decline offset unfavorable foreign exchange 5% 4% decrease unit volume. organic sales increased 8%. Global market share unchanged. sales increased. higher pricing offset foreign exchange volume. declines Europe North America Greater China. sales increased increases Latin America IMEA Asia Pacific Europe low North America. market share decreased point. Care sales increased mid-single digits. higher pricing product mix offset unfavorable foreign exchange decrease volume. declines Europe North America. sales increased mid growth Europe high North America. Global market share increased point.


earnings increased 10% $4. 8 billion sales 110-point margin. gross margin offset SG&A sales. margin driven increased pricing commodity costs foreign exchange product mix. SG&A increased media spending net sales.


millions. Volume/A Net sales$20,217$19,736 earnings$3,545$3,266 sales.


Baby Feminine Family Care sales increased 2% $20. 2 billion higher pricing 8% mix 1% North America offset unfavorable foreign exchange 4% 3% decrease unit volume. organic sales increased 6%. Global market share unchanged. sales decreased. offset higher pricing favorable product geographic mix North America. volume decrease declines Europe North America Greater China. Organic sales increased 30% growth Latin America IMEA North America Europe double decline Greater China. market share unchanged. Care sales increased digits. higher pricing product mix offset foreign exchange decrease unit volume. decrease declines Europe IMEA. Organic sales increased growth regions. Market share increased half point. sales Family Care increased higher pricing. Unit volume sales.sales increased. America family decreased.


earnings increased 9% $3. 5 billion sales 100 margin. gross margin decrease SG&A. Gross margin increased pricing offset commodity input material costs. SG&A decreased operating expense.


millions. Net sales$765$744 earnings$485/A


Corporate includes operating activities. incidental businesses gains losses divested brands financing investing employee benefits impairments restructuring manufacturing workforce optimization. reconciling items accounting policies. GAAP. income taxes adjusts rates tax rate.


sales increased 3% $765 million. earnings decreased $884 million $399 million higher interest expense lower tax higher charges offset interest income.


Company restructuring program annual spending $250 to $500 million. Savings difficult reinvestment. 2023 incurred restructuring costs $250 to $500 million.


Restructuring $174 million June 30 2023 current liabilities. 87% charges 2023 settled cash. charges funded reporting.


restructuring savings supply chain marketing overhead operating margins.


financial condition high quality generate cash access markets competitive rates.


cash flow capital expenditures. Excess dividends. uses include repurchases acquisitions. supplement debt. cash position reflects business results global cash management strategy liquidity economic tax considerations.


millions Net cash operating activities,848 investing,500(4,424) financing,146 Adjusted Free Cash Flow,792 Productivity


cash flow $16. 8 billion 2023 1% increase. Net earnings sale generated $17. 5 billion. Working capital used $656 million. Accounts receivable $307 million sales growth. increased 1. inventory $119 million safety stock. Inventory flat. payable liabilities provided $313 million cash taxes accrued compensation offset reduction trade payables. transportation costs extended payment terms. payable outstanding decreased 3 days. assets liabilities $543 million pension contributions.


Adjusted Cash Flow. non-GAAP dividends repurchases acquisitions discretionary investments. operating cash flow capital transitional tax. Tax Act. senior management at-risk compensation.


free cash flow $14. billion 2023 increase 2%. driven operating cash flows. productivity 95% 2023.


Extended Payment Terms Supply Chain Financing. fiscal 2014, Company began program extended payment terms suppliers. initiated Supply Chain Finance program with global financial institutions. SCF qualifying suppliers sell receivables SCF Bank. negotiate sales with SCF Bank. Company not party SCF Banks allow creditworthiness credit spreads costs. provides favorable terms. Company no economic interest in. supplier Company invoices. payments paid SCF Bank invoice due date regardless. SCF Bank pays supplier for invoices not sold.


Company’s payment obligation not impacted by participation SCF. payment terms for services consistent between. average days outstanding not impacted by costs SCF. SCF available to material Cost service SG&A. June 30, 2023 3% global suppliers SCF. Payments 2023 $18 billion 29% Cost goods sold SG&A. receivables sold to SCF Banks. due payable to SCF Banks. outstanding amounts recorded Consolidated Balance Sheets included in Statements of Cash Flows. June 30, 2023 2022 due to suppliers approximately $6 billion.


difficult project cash flow extended payment terms increase fiscal 2024. changes financing policies developments interest rates market liquidity credit-worthiness impact participation SCF payment terms. difficult predict.


$3. billion 2023 capital acquisitions.


. capacity expansion cost efficiencies. 1 billion 2023. decreased. 7%.


. $765 million 2023 Beauty.


financing consumed. billion 2023 dividends purchases offset debt stock options.


Dividend Payments. dividend payments. increased 4% $3. 6806 2023. payments $9. billion. Board 3% increase quarterly dividend. 9133. 9407 Common Stock Employee Stock. 67th year dividend. paid 133 years 1890.


Short. maintain levels cash flow investment financing cost capital. Total debt $34. 6 billion June 30, 2023. generated $2. 9 billion.


. $7 billion 2023.


Stock Options. generated. billion cash 2023.


June 30, 2023 liabilities exceeded assets $13. 1 billion due short-term borrowings commercial program. anticipate short-term liquidity operating needs cash operations. assesses cash needs. June 30, 2023 $5. 1 billion cash equivalents foreign subsidiaries European Asian countries. restrictions repatriation. liquidity financial condition results.


utilize short long-term debt acquisitions share repurchases. strong debt ratings refinance favorable rates bond markets. agreements financial institutions funding short-term financing.


June 30 2023 P-1's A-1+ Poor Aa3 AA- stable outlook.


maintain paper program. $8. billion $3. billion $4. billion 364-day 2027


November 2023. facilities extended credit agreement. undrawn. cross-default ratings triggers adverse events clauses signing. effective registration statement Form S-3 SEC short long-term debt securities. details Note 10 Consolidated Financial Statements.


guarantees off-balance sheet financing variable interest financial liquidity.


table date contractual commitments June 30 2023. Years 5 Years LIABILITIES Total debt,248,316,705 Leases. Tax Act charge Interest payments long debt Minimum pension funding Purchase obligations,989,169 CONTRACTUAL COMMITMENTS,041,424,086


. tax liability repatriation provisions. Act.


future pension payments local requirements. Company requirements. current environment cash flows adequate. projected payments beyond 2026 not determinable.


reflects future payments take-or-pay arrangements. Commitments minimum commitments expected usage. includes service contracts information technology human resources facilities management outsourced. amounts obligations full paid contracts canceled maturity. negotiate new contracts cancellation penalties reduced payment. include purchase obligations. orders fair value operations reflected cash flow trends. affect liquidity.


preparing financial statements. GAAP accounting policies judgment. include revenue recognition taxes employee benefits goodwill intangible assets. Note 1 Consolidated Financial Statements integral financial condition Company.


discussed accounting policies estimates Audit Committee Board.


revenue finished product. sales single performance obligation recognized ownership risks rewards transfer shipment receipt. Trade promotions merchandising advertising coupons offered. Sales recorded net promotion spending recognized incurred sale. Amounts promotions require estimation contractual terms sales volumes utilization redemption rates. amounts. differences recognized change management estimate.


annual tax rate determined income tax rates impacts items treated differently. judgements


deferred tax balances loss carryforwards tax positions.


Realization operating losses carryforwards taxable income expiration business plans planning expectations future outcomes. management believes deferred tax assets realized.


operate jurisdictions complex tax regulatory. take tax positions challenge taxing authority. interpretational differences local economic fiscal environment.


principle tax structure based on business model profits earned functions legal entities jurisdictions. complexity transfer pricing income tax uncertainty intercompany transfer prices cross-border transactions. seeking advance rulings reduce uncertainty. portfolio reduces uncertainty over 70% global earnings. evaluate tax positions establish liabilities accounting guidance uncertainty. review tax uncertainties adjust. audits process jurisdictions. resolution tax uncertain outcomes financial position cash flows.


estimates assumptions tax provision future legislation geographic tax audits repatriation plans tax rate. Note 5 Consolidated Financial Statements taxes.


sponsor postretirement benefits. pension defined contribution health care life insurance. require assumptions benefit obligations discount rate salary increases turnover retirement mortality return assets health care cost. assumptions affect annual expense obligations. assumptions reflect historical experiences management future expectations. results assumptions deferred. exceeds 10% plan assets liabilities portion included expense following year. plan changes decreasing benefits prior service deferred included expense service period.


expected return defined benefit expense pension OPRB partially funded. Note 8 Consolidated Financial Statements. 2023 average return 5. 9% 8. 4%. change 100 points after-tax $135 million.


pension OPRB liabilities rate impacts obligations expenses. Discount rates U. S. based yield curve high bonds estimated payouts. international discount rates bonds AA. average discount rate 4. 2% local rates. 100-point change benefit expense $130 million. discount OPRB 5. 6% higher interest rates U. S. 100-point change OPRB expense $30 million. Note 8 Consolidated Financial Statements details.


judgment value goodwill units intangible assets. obtain assistance third-party valuation specialists. useful life intangible requires judgment. assets indefinite lives history plans. Other assets. relationships patents technologies


. assessment brands indefinite determinable life competitive environment market share brand history product cycles operating plans macroeconomic environment. Determinable-lived assets amortized over estimated lives. impairment assessment required recoverable.


Goodwill indefinite-lived assets not amortized tested annually impairment. income method fair value based future cash flows. less than carrying value impairment. annual December 31.


goodwill units value carrying values. Grooming integration Shave Care Appliances goodwill testing. Grooming goodwill fair value cushion over 30%. June 30, 2023 carrying value $12. 7 billion.


indefinite-lived assets fair value carrying value. 2022 Gillette fair value exceeded carrying 5%. June 30, 2023 carrying value $14. 1 billion. no triggering event susceptible future impairment risk. changes currency devaluation inflation Russia-Ukraine War reduce cash flows trigger future impairment charge. reduction business activities Russia reduce fair value 5%.


significant assumptions value Gillette net sales growth discount royalty rates.


sales growth rates by demand Gillette products caused changes shifts supply chain constraints. global factors Russia-Ukraine War devaluation currencies. residual growth rates represent expected Gillette brand beyond. consistent with plans long-term market growth rates. depend on market growth rates competitive environment inflation currency exchange rates business activities market. impacted by deceleration growth grooming habit changes devaluation. increased competitive environment.


discount rate consistent cost capital expected market industry rates return debt equity capital. impacted macroeconomic volatility equity debt markets factors devaluation. dollar. Spot rates fair value date cash flows outside U.


royalty rates driven profitability Gillette business. impacted margins.


performed sensitivity analysis Gillette asset annual impairment testing months December 31, 2022 changes discount rate growth rates royalty rates potential impacts. table impacts 25 increase discount rate growth rates 50 decrease royalty rates. Percent Change Estimated Fair Value+25 Discount Rate Growth Rate Royalty Rate Gillette


Note 4 Statements goodwill.


Note 1 Consolidated Financial Statements June 30 2023.


multinational exposed market risks interest prices. evaluate correlation netting. leverage diversified portfolio prioritize hedging instruments. volatility financial transactions derivative instruments hedging. governed policies counterparty exposure instrument types hedging practices. Note 9 Consolidated Financial Statements accounting policies derivative instruments.


Derivative positions monitored market valuation sensitivity analysis value-at-risk modeling. interest currency commodity positions RiskManagerTM value-at-risk model one-year horizon 95% confidence. correlation diversification returns. Estimates volatility RiskMetricsTM dataset June 30, 2023. proxy.


market risk exposures interest rates currency commodity prices changed previous period. facts exposures near.


Interest Rate Exposure Financial Instruments. swaps debt obligations. hedge currency exchange rate foreign. hedges Company foreign investments.


interest rate exposure fiscal year June 30 2023 instruments near-term change 95% confidence affect financial statements.


Currency Rate Exposure Financial Instruments. manufacture sell finance operations exchange rates. policy hedging. risk use forward contracts currency swaps maturities less 18 months.


currency rate exposure fiscal year June 30, 2023 95% confidence impact-term change currency affect financial statements.


Commodity Price Exposure Financial Instruments. raw materials volatility supply variables unpredictable. futures options swap contracts. 2022 commodity hedging activity.


SEC Regulation S-K Item 10(e), definitions non-GAAP measures reconciliation related GAAP measure. measures provide perspective business trends. non-recurring items results supplemental measure year-on-year results. non-GAAP measures used management operating decisions financial resources business strategy. investors supplemental information performance results. senior management at-risk compensation. not GAAP measures supplemental information results. not similar differences method. include


Organic Sales Growth. non-GAAP excluding acquisitions divestitures foreign exchange.


sales trends growth. measure management goals at-risk compensation.


tables organic sales net Fiscal year June 30 2023 Sales Growth Exchange Impact Divestiture Impact Sales Growth Beauty Grooming Health Care Fabric Home Care Baby Feminine Family Care TOTAL COMPANY


Divestiture Impact volume mix impact net organic sales.


Adjusted Free Cash Flow. operating less capital spending transitional tax. S. Tax Act. represents Company maintenance asset expansion. dividends share repurchases acquisitions discretionary investments.


table adjusted free cash flow Cash Flow Spending Free Cash Flow 2023,848(3,062,011 2022,156,792


Cash tax payments. Tax Act $225 2023.


Adjusted Free Cash Flow Productivity. ratio to net earnings. understand P&G’s cash. used management decisions financial resources budget planning. management goals at-risk compensation.


table adjusted free cash flow productivity Flow Earnings Productivity 2023,011,738 2022,792


Core EPS. diluted EPS excluding items sustainable results. non-GAAP supplemental performance. goals at-risk compensation. fiscal years 2023 2022 no adjustments diluted EPS.


incorporated MD&A Note 9 Consolidated Financial Statements.


Management control financial reporting Procter & Gamble Company Rule 13a-15(f Securities Exchange Act 1934. control assurance reliability preparation statements accounting principles.


internal controls reinforced Worldwide Business Conduct Manual commitment business integrity. people committed to Purpose Values Principles. internal controls includes policies procedures segregation duties selection development employees. Global Leadership Council business strategies results Disclosure Committee Board of Directors Audit Committee accounting policies financial reporting control.


Global Internal Audit performs financial reporting provides training improves control processes. includes Control Self-Assessment Program annually areas. Management control deficiencies.


limitations internal control financial reporting not prevent detect misstatements overridden error fraud. changes conditions internal control effectiveness vary over time.


Management assessed Company control financial reporting June 30, 2023 criteria Internal Control - Integrated Framework Sponsoring concluded maintained control.


Deloitte & Touche LLP audited financial reporting June 30, 2023.


shareholders Board Procter Gamble


audited Balance Sheets Procter & Gamble Company subsidiaries June 30 2023 2022 Statements Earnings Income Shareholders’ Equity Cash Flows three years notes. financial statements present financial position Company June 30 2023 2022 results operations cash flows accounting principles.


audited Public Company Accounting Oversight Board control financial reporting June 30, 2023 Internal Control Integrated Framework report August 4, 2023 unqualified opinion.


financial statements responsibility Company management. opinion audits. public accounting firm registered PCAOB independent. federal securities laws Securities Exchange Commission PCAOB.


conducted audits standards PCAOB. standards require plan audit assurance financial statements free misstatement. audits included risks misstatement. procedures included examining evidence amounts disclosures statements. accounting principles estimates management overall presentation. audits provide reasonable basis for opinion.


critical audit matter is from current-period audit of financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on financial statements not separate opinion on.


Gillette Notes 1 4 financial statements


Gillette fair value carrying. estimates method future cash flows. estimates assumptions sales earnings growth royalty discount rate. Changes fair value impairment charge. annual impairment assessment December 31, 2022. estimated fair value exceeds carrying no impairment recorded. June 30, 2023 carrying value $14. 1 billion.


identified impairment evaluation Gillette Brand critical audit judgments management value indefinite asset. high auditor judgment effort required estimates future sales earnings royalty rates discount fair value specialists.


audit procedures net sales earnings selection royalty discount rate Gillette Brand included tested controls over Gillette Brand fair value selection royalty rates discount. evaluated comparing results historical forecasts.


evaluated forecast net sales earnings comparing sales. analysis business strategies growth plans. communications Board. information industry reports Company peer companies. fair value specialists evaluated net sales earnings growth rates royalty discount rate source information mathematical accuracy. estimates discount rate comparing.


auditor 1890.


audited Procter & Gamble Company subsidiaries June 30, 2023 Internal Control Integrated Framework (2013) Sponsoring Organizations Treadway Commission. Company maintained effective internal control 2023.


audited Public Company Accounting Oversight consolidated financial statements June 30, 2023 report 4 unqualified opinion.


Company management responsible internal control financial reporting assessment Management’s Report. express opinion control audit. public accounting firm registered PCAOB independent U. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audit standards PCAOB. standards require assurance internal control financial reporting. audit included understanding control risk material weakness testing evaluating design effectiveness other procedures necessary. audit provides basis opinion.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors assurance prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


millions share years June 30 SALES,006,187,118 Cost products,760,157,108 Selling administrative expense,112,217 OPERATING INCOME,134,986 Interest expense income non-operating income EARNINGS INCOME TAXES,353,995 taxes,738,352 earnings noncontrolling interests EARNINGS PROCTER,653,742,306 COMMON SHARE.


earnings Diluted calculated Procter & Gamble.


millions years June 30 EARNINGS,738,352 INCOME Foreign currency translation $(197) $515 $(266) gains investment securities $(2) $1 $5 gains defined benefit postretirement plans $9 $1,022 $445,992,386 INCOME TAX,425 INCOME,700,340,777 noncontrolling interests PROCTER,622,297


Notes Statements.


millions June 30 Cash,246,214 Accounts receivable,471 INVENTORIES Materials supplies,168 Work goods,254,900,073 Prepaid expenses assets,372,648,653 PROPERTY PLANT EQUIPMENT GOODWILL,659,700 TRADEMARKS,783 NONCURRENT,981,829,208 Liabilities Shareholders Equity Accounts payable,598 liabilities Debt,756 LONG-TERM DEBT,378,848 DEFERRED INCOME TAXES NONCURRENT LIABILITIES,764,354 SHAREHOLDERS EQUITY $1 Non-Voting $1Common stock $1 share 2023. 2022. capital,556 ESOP debt loss Treasury stock 2023 1,647. 2022.,736 earnings,170 Noncontrolling interest SHAREHOLDERS EQUITY,854 LIABILITIES,829,208


millions thousands JUNE 30 2020,479,746$4,009 Dividends$3. 2419 Treasury purchases,343) conversions,302 ESOP debt BALANCE JUNE 30 2021,429,706$4,009 Dividends$3. 5227 purchases,088),042 ESOP debt BALANCE JUNE 30 2022,877$4,009 Dividends$3. 6806 purchases conversions ESOP debt BALANCE JUNE 30 2023,120$4,009


millions years June 30 CASH EQUIVALENTS RESTRICTED CASH,214,288,181 OPERATING Net earnings,738,352 Depreciation amortization,735 Loss extinguishment debt compensation Deferred income taxes Loss sale assets receivable inventories accounts payable liabilities assets liabilities OPERATING ACTIVITIES,848,371 INVESTING Capital expenditures),156,787 sales Acquisitions ACTIVITIES FINANCING Dividends shareholders Additions short-term debt months,168,411 Reductions debtthree months(7,577) short-term debt,319)(3,431) Additions long debt,385 Reductions long-term debt(1,878)(2,343) Treasury stock purchases,353),003 stock options FINANCING,146 EXCHANGE RATE CHANGES CASH EQUIVALENTS(3,074)(5,893) YEAR,246,214,288 payments interest income taxes,278,818,822


extinguishment $512.


Procter & Gamble branded goods quality value. products sold 180 countries merchandisers e-commerce grocery drug department distributors wholesalers high-frequency pharmacies electronics professional channels. direct. operations 70 countries.


Consolidated Statements subsidiaries.


lack control Venezuelan subsidiaries currency not consolidated. account cost less impairments price changes.


2022 Company short-term debt maturities three months Consolidated Statements Cash Flows. year June 30, 2021 revised. financing not material.


financial statements. requires estimates assumptions Financial Statements. estimates based current events actions. consumer accruals restructuring reserves pensions postretirement benefits stock options valuation acquired intangible assets depreciation amortization-lived future cash flows impairment testing indefinite-lived deferred tax assets liabilities uncertain income tax positions contingencies. results differ estimates financial statements. impairment testing deterioration future cash flow projections assumptions impairment charges financial statements.


revenue from finished product. sales single performance obligation revenue recognized ownership risks rewards transfer shipment receipt. provision payment discounts product return allowances reduction sales. net of sales taxes. includes shipping handling costs list price.


Trade promotions pricing funds coupons offered. Sales recorded net spending incurred. arrangements one year. Accruals payouts accrued marketing Consolidated Balance Sheets.


Cost products sold materials supplies labor depreciation overhead expenses convert into products. includes distribute freight internal transfer warehousing shipping handling activity.


marketing research overhead depreciation amortization non miscellaneous items. Research development $2. billion 2023 2022 $1. billion 2021. Advertising print radio-store $8. billion 2023 $7. billion 2022


millions share specified.


. billion 2021. Non-advertising promotions sampling sales aids.


non-operating divestiture non-service impacts postretirement.


Financial statements subsidiaries outside U. measured local. Adjustments. dollars recorded. subsidiaries inflationary economies U. dollar. Re-measurement adjustments reflected earnings.


Consolidated Statements Cash Flows indirect method earnings flows. foreign currency translated monthly exchange rates. hedging. investment hedges investing. gains losses non-qualifying derivative instruments currency financing activities. flows instruments interest operating activities. payments income taxes operating activities.


Company holds equity investments control decisions. accounted equity investments. investments recorded fair value gains losses net earnings. without values measured at cost less impairments price changes. noncurrent assets Consolidated Balance Sheets.


Company holds market funds time deposits. cash Consolidated Balance Sheets.


Inventories valued lower cost. Product-related first-in-out. spare part average-cost.


Property plant equipment recorded reduced depreciation. Depreciation expense recognized lives-line. office furniture fixtures (15-year computer software (3 manufacturing equipment (3 20-year. Buildings depreciated 40 years. reviewed changes. adjusted impairment assessment.


Goodwill indefinite-lived assets not amortized evaluated impairment annually potential impairment.-lived assets.


acquired brands indefinite lives. evaluate factors competitive environment market share brand history product cycles operating plans macroeconomic environment. additional impairment assessment assets adjusted life.


cost intangible assets lives economic benefits periods. Patents technology assets contractual terms amortized over lives. Customer relationships brands non-contractual assets amortized 5 to 30 years. impairment assessment lives adjusted.


goodwill Note 4.


financial instruments fair value. assumptions affect financial condition cash flows. cash equivalents investments short-term debt recorded cost approximates fair value. values debt Note 9.


2022 Financial Accounting Standards Board issued 2022-04 Supplier Finance Programs. annual interim disclosures supplier finance programs. amendments effective years 2022 rollforward 2023. July 1, 2023. Additional disclosures Notes Consolidated Financial Statements.


accounting pronouncements fiscal year future Consolidated Financial Statements.


. GAAP segments five Beauty Grooming Health Care Fabric Home Care Baby Feminine Family Care. Hair Shampoos Styling Aids Skin Deodorants Cleansing Female Male Pre- Post Pain Relief Respiratory Vitamins Home Care Enhancers Laundry Additives Dish P&G Professional Surface Feminine Family Care Wipes Taped Diapers Feminine Incontinence Towels Tissues Toilet Paper.


none segments seasonal Appliances Personal Health Care seasonal.


accounting policies Note 1. Differences. reflect income taxes reflected blended rates. Adjustments effective tax rate Corporate. capital expenditures accrual balance sheet. Adjustments cash reflected Corporate.


Corporate includes operating non-operating activities management reporting. GAAP. businesses. employee benefit restructuring activities manufacturing workforce optimization impairment. non-operating elements interest expense pension postretirement costs acquisition divestiture gains interest investing income financing costs.


assets reportable segments inventory intangible. cash accounts receivable securities goodwill.


millions share specified.


operating segments similar product categories. 5% net sales sales Fiscal years June Fabric Care Home Care Baby Care Skin Personal Care Hair Care Family Care Grooming Oral Care Feminine Care Personal Health Care Other TOTAL


Net sales segment excludes.


July 1, 2022 Grooming Sector Unit Shave Care Appliances. management team innovation financial targets budgets. 2022 2021 Appliances.


sales long-lived assets United States Fiscal years ended June 30 United States. 5. International. 3. 4-LIVED United States. 7. International. 5.


-lived assets equipment.


country 10% Company sales assets.


Walmart. affiliates sales 15% 2023 2022 2021. No 10%.


Global Segment Sales Before Taxes Amortization Assets Expenditures BEAUTY,008#4,009,178#376,196#287,740,160,018,210 GROOMING,601,482,668 HEALTH CARE,226,759,125####352,480,824####376,398 FABRIC HOME CARE,371,303,669,556,386,334 BABY FEMININE FAMILY CARE,217 ##2022,736,267,266,443####932 ##2021,850,629,666 CORPORATE,147),366(400)(1,238)(74) TOTAL COMPANY#2023,006,353,738,714,829,187,995,208,156,118####17,615,352,735,307,787


property plant equipment June 30 PLANT EQUIPMENT Buildings,277 Machinery equipment,098 Land Construction TOTAL PROPERTY PLANT EQUIPMENT,697 depreciation,195


liabilities June 30 Marketing promotion,894,878 Compensation Taxes liabilities Leases reserves,939,929 NONCURRENT LIABILITIES Pension benefits,116,139. Tax Act tax retiree benefits Uncertain tax positions leases Derivative liabilities TOTAL,152


Company restructuring activities cost workforce optimization. costs $250 to $500 annually.


Restructuring costs employees facilities. separation costs voluntary salary past service periods. charged earnings. Asset-related costs asset write-downs accelerated depreciation. write-downs new fair value disposal. current basis less. accelerated depreciation long-lived assets service. manufacturing consolidations technology standardizations. future depreciation. asset removal termination contracts supply overhead optimization. restructuring charges $329 $253 fiscal years 2023 2022. 2023 $160 Costs products sold $160 SG&A $9 Other non-operating income.


2022 $182 Costs products sold $67 SG&A $4 non-operating income. table restructuring years 2023 2022-Related Costs RESERVE JUNE 30 2021 Cost paid(384 JUNE 30 2022 expense paid RESERVE JUNE 30 2023


historical policies charges funded Corporate management reporting.


table restructuring costs years June 30 Beauty Grooming Health Care Fabric Home Care Baby Feminine Family Care Corporate Company


includes Enterprise Markets Business Services Corporate Functions.


change net goodwill segment Care Home Care Feminine Family Care Company Balance June 30, 2021,257#13,095#8,046,924 Acquisitions divestitures(742 Balance June 30, 2022 Net,296,571,700 Acquisitions divestitures Balance June 30, 2023 Net,888,703,659


goodwill. billion losses.


Goodwill indefinite-lived intangibles tested annually values values. income method fair value based future cash flows. estimates include future cash flows growth profitability. judgement management impact macroeconomic factors future cash flows Russia-Ukraine War. Estimates macroeconomic conditions category growth rates competitive activities cost containment margin expansion business plans product life cycles economic barriers brand market position discount rate. Unanticipated events affect.


millions share specified.


believe estimates assumptions impairment testing reasonable comparable marketplace participants. events results differ valuations. failure projected cash flows value goodwill assets need record additional non-cash impairment charges.


Goodwill 2023 Beauty acquisitions Baby Feminine Family currency translation segments.


Goodwill 2022 currency translation offset three acquisitions Beauty TULA.


intangible assets June 30 ASSETS DETERMINABLE LIVES Brands,352(2,540),299(2,628) Patents technology,775,769 Customer relationships TOTAL,047,256),012,273) INDEFINITE LIVES Brands,992,940 TOTAL INTANGIBLE,256,952,273)


Amortization assets years June Intangible asset amortization


amortization expense five fiscal years ending June 30#340#320#297#287


Income taxes recognized current year impact deferred tax assets liabilities future consequences. Deferred tax assets liabilities established tax rates adjusted changes.


tax Global Intangible Low-Taxed Income expense.


Earnings before taxes years June 30 States,107,698,858 International,246,297,353,995


Income taxes Fiscal years June 30 TAX. federal International,333. state local TOTAL,068,604 TAX EXPENSE. federal(65) International(82) TAX EXPENSE,615,202,263


reconciliation. federal statutory income tax rate effective rate Fiscal years June 30. federal statutory income tax rate. Country mix impacts foreign operations. State income taxes federal benefit. Excess tax benefits stock options. Foreign intangible income deduction. Changes uncertain tax positions. EFFECTIVE INCOME TAX RATE.


impacts foreign operations subsidiaries earnings U. S. statutory. impacts non-U. S. earnings repatriation impacts intercompany transactions. uncertain tax positions net liability. Excess tax benefits stock options reflect tax benefits over tax benefits.


Tax benefits equity $190 fiscal year 2023. investment hedges. Tax costs equity $1,538 year 2022. pension obligations investment hedges.


U. Tax Act Company asserted undistributed earnings foreign subsidiaries indefinitely invested no deferred taxes. earnings one-time transition tax. income foreign withholding taxes. deferred taxes $24 billion earnings indefinitely invested.


reconciliation liability tax positions Fiscal years June 30#627 Increases Decreases(34) Increases current Settlements taxing authorities(26) Lapse statute limitations(24) Currency translation END YEAR#515#583#627


liability tax positions June 30 2023 $354 tax rate.


Company present 70 countries 150 jurisdictions 30-40 audits. evaluate tax positions establish liabilities uncertain challenged. positions reviewed adjusted changing facts circumstances case law closing statutes limitation. adjustments reflected tax provision. tax years 2010. estimate settlement until audit. 12-month audit activity completed uncertain tax positions multiple jurisdictions accrued liabilities $40, including interest penalties.


accrual interest penalties. June 2023 2022 2021 interest $143 $179 $166 penalties $12 $10 not table. recognized $23 $21 $38 interest $1 $2 $6 penalties.


Deferred income tax liabilities June 30 TAX ASSETS Loss carryforwards research Pension retiree benefits marketing Stock compensation loss Fixed assets Lease liabilities Valuation allowances,091 DEFERRED TAX LIABILITIES Goodwill intangible assets Fixed assets retiree benefits gain Lease withholding tax,334


loss carryforwards. billion 2023. 5 2022. $300 2023 2042. remainder. 6 billion.


net earnings share Procter & Gamble less dividends average shares. Diluted earnings diluted. diluted shares include dilutive effect stock options share awards treasury conversion preferred stock 8).


millions share specified.


earnings per common share calculated Fiscal years June 30,738,352 Less noncontrolling interests P&G,653,742,306 Less Preferred dividends P&G,371,461,035,653,742,306 SHARES Basic average common shares outstanding,368.,410.,465. dilutive securities Stock options unvested equity awards. Convertible preferred shares. Diluted average common shares,483. 9. PER COMMON SHARE. Diluted.


19 million 11 9 million 2023 2022 2021 weighted stock options market antidilutive.


shares Note 8.


Diluted calculated Procter & Gamble.


Company two compensation programs stock option performance managers directors.


managers stock options RSUs. options vest three years 10-year life. market shares. RSUs settle stock three years grant.


executives incentive program PSUs paid shares three-year period goals. Relative Total Shareholder Return modifier shares granted impacted shareholder return.


long-term award RSUs non-employee directors minor stock option RSU grants employees terms.


Company share compensation plan approved 2019. 150 million shares stock 96 million.


Company recognizes share-based compensation expense fair value awards grant. recognized straight service period. Awards employees retirement recognized compensation expense grant date through. expense Cost products Consolidated Statement Earnings estimate forfeitures historical data.


expense tax benefit years June 30 Stock options RSUs PSUs share expense Income tax benefit


utilize standard lattice valuation model value stock options. Assumptions evaluated revised reflect market conditions Fiscal years June 30 Interest rate. Weighted average interest rate. Dividend yield. Expected volatility Expected life years.


Lattice option valuation models assumptions disclosed table. Expected volatilities based historical stock implied volatilities options. historical data option exercise employee termination patterns. expected life options average. interest rate based U. S. Treasury yield curve.


Monte-Carlo simulation model performance stock units. Assumptions stock options.


summary options June 30, 2023 activity Exercise Price Contractual Life Years Value July 1, 2022. Granted. Exercised. Forfeited/expired. June 30, 2023,205. Exercisable,336.,291


table stock options Fiscal years June 30 grant-date value options. 58. 55. 94 value options exercised Grant-date Cash,189 tax benefit


June 30 2023 $159 compensation cost option grants. 6 years.


millions share specified.


summary non-vested RSUs PSUs June 30, 2023 activity awards Grant Date Value Non-vested July 1, 2022. 94 Granted. 21 Vested. Forfeited. 68 Non-vested June 30 2023,172. 94.


June 30 2023 $218 compensation cost PSUs. 7 years. $220 $248 $266 2023 2022 2021.


Company settles equity treasury shares. policy repurchase shares impact options RSUs PSUs. discretionary purchases impacts.


benefits employees.


contribution plans. countries. funded. salaries years service. global contribution expense $392 $366 $340 2023 2022 2021.


primary. plan. majority expense. contribution rate set annually. contributions 13% wages salaries 2023 14% 2022 2021.


maintain Procter Gamble Profit Trust Employee Stock Ownership Plan U. DC plan retiree benefits. Operating details ESOP. ESOP shares cash contribution.


offer defined benefit retirement pension plans employees. outside. assumed previous


provide retiree health care. S employees eligible age service requirements. plans cost sharing funded ESOP B shares assets.


Funded.reconciliation benefit obligations assets funded status defined benefit plans Benefits Retiree Benefits Fiscal years June 30 CHANGE BENEFIT OBLIGATION,469 Service cost Interest cost Participants contributions Amendments actuarial loss Special termination benefits Currency translation Benefit payments END YEAR,499,933 CHANGE PLAN assets year return assets Employer contributions Participants contributions Currency translation ESOP debt impacts Benefit payments VALUE PLAN ASSETS YEAR#10,173,324 FUNDED STATUS,125,435),391,819


. retirement plans.


. postretirement plans.


pension benefit plans projected. retiree plans accumulated postretirement.


amendment self-insured. retiree health care Medicare Advantage Programs 2022.


ESOP debt assets retiree benefits.


gain pension plans 2023 discount rates offset inflation increases. benefits discount rates medical claims costs. gain pension plans 2022 discount rates. benefits offset unfavorable medical claim experience.


underfunding pension benefits funding incentives outside U. S. no legal requirements incentives pre-fund pension obligations. benefit payments paid Company cash. Benefits Retiree Benefits June 30 NET RECOGNIZED Noncurrent assets,119 Current liabilities Noncurrent liabilities,116 NET AMOUNT RECOGNIZED,125,391,819 Net actuarial loss,160 Prior service cost AMOUNTS RECOGNIZED AOCI


millions share specified.


accumulated benefit obligation defined benefit pension plans future salary increases $11. 8 billion $11. 9 billion June 30 2023 2022. funded status pension retiree benefits June 30 PLANS PROJECTED BENEFIT OBLIGATION EXCESS ACCUMULATED BENEFIT OBLIGATION,191 RETIREE BENEFIT PLANS obligation#818 value assets


Periodic.net benefit cost Benefits Retiree Benefits Fiscal years June 30 PERIODIC BENEFIT COST Service cost Interest cost return plan assets Amortization net actuarial loss service cost actuarial loss settlements Special termination benefits BENEFIT COST Dividends ESOP stock PERIODIC BENEFIT COST PLAN ASSETS BENEFIT OBLIGATIONS Net actuarial loss(gain current year,150Prior service cost year net actuarial loss prior service net loss settlements Currency translation TOTAL CHANGE AOCI,991)(1,025) PERIODIC BENEFIT COST AOCI(2,805))(1,499)


service cost Consolidated Statements Earnings products sold SG&A. other components non-operating income unless.


. determine actuarial assumptions annual. cost retirement benefits. average assumptions benefit obligations Consolidated Balance Sheets June 30 2023 2022 Benefits Retiree Benefits Discount rate. compensation increase. Interest crediting rate cash balance plans. Health care cost trend rates next year. health care cost trend rate decline trend. ultimate trend rate


fiscal year.


weighted average assumptions net benefit cost Consolidated Statement Earnings fiscal years ended June 30 Retiree Fiscal years ended June 30#2023 Discount rate. Expected return plan assets. Rate compensation increase./A Interest crediting rate cash balance plans.


Company calculates benefit obligation impacts service interest costs rates bond yield curve. remaining plans average discount rate bond yield curve.


factors long-term return assets. defined benefit retirement plans historical equity bond indices projected consultants. expected rates 8 - equities 3 - 5% bonds. other plans assets Company stock. based return 8. 5% historical pattern.


Assets. investment objective benefit retirement benefit obligations self-sufficiency. strategies focus asset diversification liquidity balance return risk. Target asset allocations determined risks future liabilities benefit payments long return volatility correlations. assets diversified investment managers invested liquid funds market equity bond indices. risk controlled rebalanced allocations monitoring performance.


target asset allocation fiscal year June 30 2023 actual asset allocation asset category June 30 2023 2022 Asset Allocation Asset Allocation June 30 Retiree Benefits Asset Cash Debt securities Equity securities TOTAL


table fair value Company assets June 30 2023 2022 segregated level Note 9.


Investments valued net asset value not fair value hierarchy managers supported unit prices purchase sale transactions. Retiree Benefits June 30 Value Hierarchy ASSETS Cash equivalents common preferred stock,340 Fixed income securities,190 Insurance contracts ASSETS FAIR VALUE,337,237 Investments net value,037 TOTAL ASSETS FAIR VALUE,374,324


preferred stock valued net ESOP debt.


income securities estimated pricing models.


insurance contracts cash equivalent future cash inputs credit risk interest rate curves. activity Level 3 assets years.


valued asset equity fixed income funds.


Cash Flows. cash contributions defined benefit retirement fiscal year June 30 2024 $206 $52. contributions market value conditions. business investment opportunities cash requirements. funding differ estimates.


benefit payments assets plans years June Retiree Benefits BENEFIT 2024 2025 2026 2027 2028 2029 2033,800


maintain ESOP employee benefits.


ESOP borrowed $1. billion 1989 Convertible Stock. DC plan. paid dividends advances. original borrowing $1. billion repaid advances $8 outstanding June 30 2023. share convertible common stock. $3. 68 share. liquidation $6. 82 share.


1991 ESOP borrowed $1. billion. ESOP Convertible Preferred Stock retiree health care benefits. borrowings $1. billion repaid 2021. dividends advances $814 outstanding June 30 2023. convertible common stock. $3. 68 share. liquidation value $12. 96 per share.


millions share specified.


ESOP accounting practices consistent continuation. ESOP debt guaranteed recorded offset Reserve ESOP debt retirement Shareholders' equity. Advances increase Reserve. Interest expense. Dividends shares charged earnings.


series A B shares ESOP allocated employees debt service. June 30,449,901#27,759 Unallocated,123 A,024,172,719,203 Unallocated,867,120,349 B,839,552


diluted earnings preferred shares ESOP converted.


multinational company exposed market risks interest currency commodity prices. evaluate exposure correlation netting. volatility financial transactions derivative instruments hedging. governed policies counterparty exposure instrument types hedging practices.


Company meets accounting criteria management designates instruments cash flow fair value net investment. record instruments fair value accounting depends use designation effectiveness risk. high effectiveness hedged hedging instrument.


counterparty credit guidelines transactions investment institutions. exposures monitored reviewed timely. incurred credit losses risk management instruments.


Company financial instruments hedging governed netting collateral agreements. credit rating counterparties demand collateralization termination. value instruments net liability $1,088 $219 as June 30 2023 2022. collateral.


policy interest cost fixed variable debt. interest rate swaps exchange counterparty difference fixed variable interest notional amount.


designate interest rate swaps fixed rate debt fair value hedges. changes recognized earnings.


manufacture sell products finance operations countries. exposed foreign currency exchange rates. leverage portfolio hedge. enter foreign currency contracts hedge items. change value exposure recognized earnings.


exchange rate risk forward contracts currency swaps. change value recognized earnings foreign currency impact.


hedge net investment positions foreign subsidiaries. borrow debt hedge enter currency swaps hedges. time value hedge swaps excluded from hedge effectiveness. Changes fair value swap recognized in OCI offset investment hedged. time value reported in income.


raw materials price volatility weather supply political economic variables. 2023 2022 financial commodity hedging activity.


self-insure risks. purchase Directors Officers law contract.


Accounting fair value 1: Quoted market prices active markets. 2: Observable market-based inputs corroborated data. 3: Unobservable inputs assumptions inputs inactive markets.


Company no activity Level 3 assets liabilities. value principles maximize quoted market prices minimize unobservable inputs. changed valuation techniques assets.


market quotes valuation models. project future cash flows discount amounts present value inputs credit risk interest rate curves prices. management judgment fair value.


Cash equivalents $6. billion. billion June 30 2023 2022 Level 1 value. investments.


value long-term debt $26. 9 billion $25. 7 billion June 2023 2022.$3. 9 billion $3. 6 billion 2022. fair value. amortized cost measured fair value. Level 2 fair value hierarchy. prices.


millions share specified.


notional amounts fair values financial instruments hedging transactions June 30 2023 2022 Amount Value Asset June FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts,044 INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts,005 TOTAL HEDGING INSTRUMENTS,049,915 NOT HEDGING Foreign currency contracts TOTAL FAIR VALUE,538,118


interest rate offsets hedging adjustment debt obligation. unamortized discount adjustment $3. 6 billion $4. 7 billion June 30, 2023 2022. debt instruments net. carrying value currency gain loss $11. 8 billion $11. 2 billion June 30 2023 2022. increase balance driven favorable interest rate spreads foreign currency swap market. decrease balance currency contracts not reflects intercompany financing activity.


assets Prepaid expenses current noncurrent. liabilities Accrued. Changes fair value investment hedges Foreign currency translation income. derivative assets liabilities Level 2.


gains instruments hedging categorized OCI Fiscal years June 30 INVESTMENT HEDGING RELATIONSHIPS Foreign currency contracts


derivatives gain excluded recognized earnings $238 $73 years 2023 2022.


foreign currency derivative contracts debt instruments net investment hedges. gain/(loss AOCI $(315) $1,639 fiscal years 2023 2022. Gain years VALUE HEDGING Interest rate contracts NOT HEDGING Foreign currency contracts


loss derivatives hedging offset mark-to-market. recognized Consolidated Statement Earnings Interest. loss derivatives not offset currency mark-to-market. recognized Statements Earnings.


June 30 DUE long-term debt,647 Commercial paper,236 Other TOTAL,229,645 interest rate debt year.


average interest rate debt swaps Note 9. June 30-TERM. 10% USD August 2023. 13% November 2023. 50% October 2024. 63%. 55% October 2025. 10% January 2026. 70% February. April. 25% August 2026. 45% November 2026. 90% February 2027. 80% March 2027. 88% May 2027. 85% August 2027. 95% January 2028. 20% October. 25% October. March 2030. 35% EUR May. 20% October 2030. 95% USD April. 25% EUR August. 30% February. January. 55% March.88% EUR October 2038. 55% USD March 2040. 90% EUR November 2041 long-term debt,196,647,378,848 interest.


rate-term debt swaps Note 9.


debt maturities June 30 maturities$3,951$1,954$3,364,368$1,380


table presents changes income Procter & Gamble reclassifications Securities-retirement Benefit Currency Translation AOCI BALANCE JUNE 30, 2021,744 OCI before reclassifications reclassified Consolidated Statement Earnings Less OCI non-controlling interests BALANCE JUNE 30, 2022 OCI before reclassifications reclassified Consolidated Statement Earnings Less OCI non-controlling interests BALANCE JUNE 30, 2023


tax $1 $953 $515 investment securities postretirement benefit plans foreign currency June 30 2022.


tax postretirement benefit plans foreign currency translation June 30 2022.


tax $(2) $1 $(197) gains securities postretirement benefit plans foreign currency June 30 2023.


tax postretirement benefit plans foreign currency translation June 30 2023.


details reclassified AOCI Consolidated Statement Earnings securities reclassified non-operating income. benefit plans income postretirement costs.


Company determines contract lease control property equipment. lease real estate machinery equipment vehicles office equipment varying periods. leases include option renew or terminate. options included term. incremental borrowing rate based on commencement. lease agreements guarantees restrictive covenants. material finance leases sublease activities. Short-term leases not reflected Consolidated Balance Sheets. Lease expense not material. significant assets real estate vehicles. liabilities lease non-lease components.


millions share specified.


lease cost years 2023 2022 2021 lease cost#229#220#245 Variable lease cost Total lease cost#308#309#320


utilities maintenance property taxes operating costs leases not liability recognized period.


balance sheet leases June 30 Operating leases Right-of-use assets Current lease liabilities Noncurrent lease liabilities operating lease liabilities lease term. 2 years. 4 years discount rate.


June 30 2023 payments lease 30 2 3 4 5 years 5 lease payments Interest lease liabilities


cash lease liabilities $233 $228 years 2023 2022.


right-use assets liabilities $213 $217 2023 2022.


transactions divestitures provide routine indemnifications. representations warranties retention environmental tax employee liabilities terms range not defined. maximum obligation not stated overall amount estimated. made significant payments for. loss effect financial position results operations cash flows.


guarantee loans suppliers customers. guarantees.


off-balance sheet financing variable financial statements.


purchase commitments materials supplies services property equipment business. Commitments take-pay Fiscal years June 30 Purchase obligations,169


amounts represent minimum commitments expected usage. include purchase commitments contracts information technology human resources facilities outsourced suppliers. proprietary contracts penalty early termination. penalty financial position cash flows.


subject to legal proceedings antitrust trade regulation product liability advertising contracts environmental patent trademark labor employment tax. uncertainty resolution lawsuits affect financial cash flows.


subject to contingencies environmental laws regulations effects manufacturing waste. ultimate resolution environmental remediation affect financial position cash flows.


Disagreements Financial Disclosure


Controls.


Chairman Jon R. Moeller Andre Schulten disclosure Rules 13a-15 15d-15 Securities Exchange Act 1934 Annual Report Form 10-K.


. Moeller Schulten concluded Company disclosure controls information reports Exchange Act recorded processed summarized reported Securities Exchange Commission rules accumulated communicated management. decisions.


Control Financial.


incorporated Report Financial Reporting Accounting Firm Item 8 Form 10-K.


Financial Reporting.


no changes in control over financial reporting during Company fourth fiscal quarter.


millions share specified.


Board Directors determined Audit financial experts SEC. Woertz. Christine. McCarthy.


information 2023 Proxy Statement Regulation 14A 120 days after June 30 2023 Election Directors Board Meetings Committees Code Ethics Shareholder Recommendations Nominations Director Candidates. Instruction 401 Regulation S-K Executive Officers Registrant Part I.


2023 Proxy Statement Regulation 14A 120 days June 30 2023 Corporate Governance Board Meetings Committees Compensation Committee Participation Risk Oversight Compensation Director Compensation Pay Versus Performance.


Ownership Stockholder Matters


table Company's common stock issued options warrants rights equity compensation plans as June 30, 2023. includes plans 1992 2001 2003 2009 2014 2019. Category Number securities issued options warrants rights average exercise price Number securities future issuance plans approved Stock Options/Stock Appreciation Rights#121,226,313$104. 1900 Restricted Stock Units/Performance Stock Units#6,430,184#/A TOTAL,656,497$104. 1900


Procter & Gamble 2019 Stock Incentive Compensation Plan future grants. maximum 187 million. Stock options appreciation rights one-for-one full value awards five. shares 96 million.


average price options.


2023 Proxy Statement Regulation 14A 120 June 30 2023 Beneficial Ownership Security Ownership Management Beneficial Owners.


2023 Proxy Statement Regulation 14A 120 days June 30 2023 Corporate Governance Director Independence Review Approval Transactions.


information 2023 Proxy Statement Regulation 14A 120 days June 30 2023 Report Audit Committee Services Deloitte.


. Statements


Consolidated Financial Statements Procter & Gamble Company subsidiaries management's report independent accounting firm Part II Item 8 Form 10-K.'s Report Control Independent Public Accounting Firm 34 Independent Accounting Firm Earnings years 2023 2022 2021 Comprehensive Income Balance Sheets June 30 2023 2022 Shareholders' Equity Cash Flows Financial Statements


. Statement


schedules omitted conditions information Consolidated Financial Statements Notes.


Exhibit (3-1) Articles Incorporation October 11 2011 consolidated Board April 8, 2016) Annual Report 10-K June 30. approved Board December 13, 2022 shareholders October 13, 2009). (4-1) September 3, 2009, Company Deutsche Bank Trust Americas Trustee Annual Report June. Company agrees furnish Securities Exchange Commission instrument rights long-term debt. (4-3 Common Stock Annual. 0. 625% Notes due 2024 1. 200% Notes 2028 1. 875% due 2038. 4. 875% EUR notes due May 2027 6. 250% GBP notes January 2030 5. 250% GBP January 2033 Exhibit (4-5). (4-6 0. 500% Notes due 2024 1.250% Notes due 2029 Exhibit (4-6) Annual 10-K June 30 2019. (4-7. 375% Notes 2025. 800% 2029 (4-7. (4-8. 125% Notes due 2023 Exhibit (4-8). (4-9. 350% EUR Notes 2030. 900% EUR Notes 2041 Exhibit (4-10). 110% Yen Notes 2026. 230% Yen Notes 2031 Exhibit (4-11. 3. 250% Notes 2026. 250% Notes 2031.


(10-1) Procter & Gamble 2001 Stock Incentive Compensation Plan adopted October 9, 2001 June 30, 2018). (10-2) terms conditions quarter December 31, 2013). (10-3 Procter & Gamble 1992 Stock Plan amended December 11, adopted October 12, 1992 June 30 2018). (10-4 Procter & Gamble Executive Group Life Insurance Policy June 30,. (10-5 Retirement Plan Restoration Program quarter December 31, 2019. (10-6 Plan Restoration Program Terms Conditions. (10-7 Long-Term Incentive Program quarter September 30, 2020. (10-8 quarter September 30, 2021. (10-9 Procter & Gamble Company Executive Deferred Compensation Plan quarter March 31, 2020.(10-10 Short Term Achievement Reward Program 10-Q quarter December 31, 2022. (10-11 Reward Exhibit (10-2) 10-Q quarter September 30 2021. (10-12 Separation Agreement (10-12 June 30, 2022. Separation Letter Release quarter March 31, 2023. (10-14 personal benefits officers directors (10-5 quarter September 30, 2021. (10-15 Gillette Company Deferred Compensation Plan (10-18 June 30. (10-16 Executive Recoupment Policy Exhibit (10-19 June 30. Deferred Compensation Plan salary deferrals January 1 2005 August 21, 2006 Exhibit (10-20 June 30,.(10-18 Procter & Gamble 2009 Stock Compensation Plan adopted 2009 Exhibit (10-21 Report 10-K June 30. (10-19 Compensation Leadership Development Committee 2009 2001 1992 2004 Incentive Plan 1971 Stock Option Plan Exhibit (10-21 Report June 30. (10-20 Gamble 2009 Compensation Plan Additional terms conditions Exhibit (10-2) 10-Q December 31,. (10-21 Procter Gamble Performance Stock Program Summary (10-5 September 30 2020. (10-4 September 30 2021. (10-23 Procter & Gamble 2013 Non-Employee Directors' Stock Plan (10-3 December 31,.


(10-24 Procter & Gamble 2014 Stock Incentive Compensation Plan adopted October 14 2014 Exhibit (10-25 Annual Report 10-K June 30. Compensation Leadership Development Committee Procter Gamble 2019 Exhibit (10-1) Form 10-Q December 31, 2019. Gamble 2014 Plan Additional terms conditions-26) Annual Report 10-K June 30.-27) Procter Gamble 2019 Plan adopted October 8 2019 (10-1) Form 8-K October 11 2019.-28) 2019 Additional terms conditions (10-28) Annual Report 10-K June 30, 2021. (21) Registrant. (23) Accounting Firm. (31) 13a-14 Certifications. 1350. Directors Officers Insurance Program.XBRL Taxonomy Extension Calculation 101. Definition. Label. Presentation Data File XBRL Exhibit 101 Rule 406T Regulation S-T data files not filed registration Sections 11 12 Securities Act 1933 18 Securities Exchange Act 1934 not liability. plan.


Section 13 Securities Exchange Act 1934 registrant report Cincinnati Ohio. PROCTER COMPANY JON. MOELLER. Chairman President Chief Executive Officer 04 2023