Finance Final Homework

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Balance Sheet

The Procter & Gamble Company
Annual Balance Sheet (year end 6/30/XX)
Period Ended in millions 2010 2011 2012 2013 2014 2015
Cash and Cash Equivalents 2,879 2,768 4,436 5,947 8,558 6,845
ST marketable securities 2,128 4,767
Accounts Receivable - Trade, Net 5,335 6,275 6,068 6,508 6,386 4,861
Inventory 6,384 7,379 6,721 6,909 6,759 5,454
Deferred Income Taxes 948 1,092 1,356
Prepaid Expenses and other current assets 4,184 5,548 4,685 3,678 3,845 2,853
Assets held for sale 2,849 3,510
Total Current Assets 18,782 21,970 21,910 23,990 31,617 29,646
Buildings - Gross 6,868 7,753 7,324 7,829
Land / Improvements - Gross 850 934 880 878
Machinery / Equipment - Gross 29,294 32,820 32,029 34,305
Property / Plant / Equipment, Total - Gross 37,012 41,507 40,233 43,012
Accumulated Depreciation, Total -17,768 -20,214 -19,856 -21,346
Property / Plant / Equipment, Total - Net 19,244 21,293 20,377 21,666 22,304 20,268
Goodwill, Net 54,012 57,562 53,773 55,188 53,704 47,316
Intangibles, Net 31,636 32,620 30,988 31,572 30,843 26,829
Other Long Term Assets 4,498 4,909 5,196 6,847 5,798 5,436
Total Assets 128,172 138,354 132,244 139,263 144,266 129,495
Accounts Payable 7,251 8,022 7,920 8,777 8,461 8,257
ST Debt& Current portion of Lt Debt 8,472 9,981 8,698 12,432 15,606 12,021
Liabilities held for sale 660 1,187
Accrued and Other Current liabilities 8,559 9,290 8,289 8,828 8,999 8,325
Total Current Liabilities 24,282 27,293 24,907 30,037 33,726 29,790
Long Term Debt 21,360 22,033 21,080 19,111 19,811 18,329
Deferred Income Tax 10,902 11,070 10,132 10,827 10,218 9,531
Pension Benefits & Other Liabilities 10,189 9,957 12,090 10,579 10,535 8,795
Total Liabilities 66,733 70,353 68,209 70,554 74,290 66,445
Noncontrolling Interest 324 361 596 645 762 631
Redeemable Convertible Preferred Stock 1,277 1,234 1,195 1,137 1,111 1,077
Common Stock 4,008 4,008 4,008 4,009 4,009 4,009
Additional Paid-In Capital 61,697 62,405 63,181 63,538 63,911 63,852
Retained Earnings (Accumulated Deficit) 64,614 70,682 75,349 80,197 84,990 84,807
Treasury Stock - Common -61,309 -67,278 -69,604 -71,966 -75,805 -77,226
Accumulated & Other Comprehensive Income -10,773 -5,006 -10,690 -8,851 -9,002 -14,100
Total Equity 59,838 66,406 64,035 68,709 69,976 63,050
Total Liabilities & Shareholders' Equity 128,172 138,354 132,244 139,263 144,266 129,495
Check Work balanced balanced balanced balanced balanced balanced

Cash Flow

The Procter & Gamble Company
Cash Flow Statement in millions (yr end 6/30/xx) 2010 2011 2012 2013 2014 2015
Net Income 12,846 11,927 10,904 11,402 11,785 7,144
Depreciation & Amortization 3,108 2,838 3,204 2,982 3,141 3,134
Deferred Taxes 36 128 -65 -307 -44 -803
Venezuela deconsolidation charge 2,028
Goodwill impariment charges 1,576 308 2,174
Share Based compensation expense 453 414 377 346 360 337
Other Non-Cash Items -2,670 -203 -2,106 -916 -154 -766
Total Non- Cash expenses 927 3,177 2,986 2,413 3,303 6,104
Accounts Receivable -14 -426 -427 -415 87 349
Inventories 86 -501 77 -225 8 313
Payable / Accrued 2,446 358 -22 1,253 1 928
Other Assets & Liabilities, Net -160 -1,205 -234 445 -1,226 -230
Changes in Working Capital 2,358 -1,774 -606 1,058 -1,130 1,360
Cash from Operating Activities 16,131 13,330 13,284 14,873 13,958 14,608
Capital Expenditures -3,067 -3,306 -3,964 -4,008 -3,848 -3,736
Acquisition of Business -425 -474 -134 -1,145 -24 -137
Deconsolidated Venezuela Operations -908
Sale of Fixed Assets 3,068 225 2,893 584 570 4,497
Investment, Net -173 73 112 -1,726 -805 -2,607
Cash from Investing Activities -597 -3,482 -1,093 -6,295 -4,107 -2,891
Total Cash Dividends Paid -5,458 -5,767 -6,139 -6,519 -6,911 -7,287
Treasury stock purchases -6,004 -7,039 -4,024 -5,986 -6,005 -4,604
Options Exercised 721 1,302 1,729 3,449 2,094 2,826
Short Term Debt, Net -1,798 151 -3,412 3,406 3,304 -2,580
Long Term Debt Issued 3,830 1,536 3,985 2,331 4,334 2,138
Long Term Debt Reduction -8,546 -206 -2,549 -3,752 -4,095 -3,512
Cash from Financing Activities -17255 -10023 -10410 -7071 -7,279 -13,019
Foreign Exchange Effects -122 163 -113 4 39 -411
Net Change in Cash -1,843 -12 1,668 1,511 2,611 -1,713
Net Cash - Beginning Balance 4,781 2,879 2,768 4,436 5,947 8,558
Net Cash - Ending Balance 2,938 2,867 4,436 5,947 8,558 6,845
Cash Interest Paid 1,184 806 740 683 686 678
Cash Taxes Paid 4,175 2,992 4,348 3,780 3,320 4,558

Income Statement

The Procter & Gamble Company
Annual Income Statement in millions (year end 6/30/xx) 2010 2011 2012 2013 2014 2015 TTM
2014 2015
Total Revenue 77,567 81,104 82,006 80,116 80,510 76,279 69,374 Total Revenue 80,510 76,279
Cost of Revenue incl depr & amort & restructuring 37,042 39,859 41,411 39,991 41,010 38,876 -35,196 Fabric Care & Home Care 23,509 22,277
SG&A Expense incl restructuring 24,793 25,750 25,984 26,000 24,760 23,585 -20,464 Beauty, Hair & Personal Care 19,507 18,135
Goodwill & indefinite-lived intangible impariment 1,576 308 Baby, Feminine & Family Care 20,950 20,247
Venezuela deconsolidation charge 2,028 -2,028 Health Care 7,798 7,713
Operating Income 15,732 15,495 13,035 13,817 14,740 11,790 11,686 Grooming 8,009 7,441
Interest Expense 946 831 769 667 710 626 -579 Corporate 737 466
Other Non-Operating Income (Expense) 82 333 262 1,029 307 682 696
Earnings before taxes 14,868 14,997 12,528 14,179 14,337 11,846 11,803 % of Total TTM
Provision for Income Taxes 4,017 3,299 3,378 3,226 3,019 2,916 -3,006 Fabric Care & Home Care 29.20% 29.20%
Net Income From Continuing Operations 10,851 11,698 9,150 10,953 11,318 8,930 8,797 Beauty, Hair & Personal Care 24.23% 23.77%
Baby, Feminine & Family Care 26.02% 26.54%
Net Earnings from Noncontrolling Interests 130 148 90 142 108 -208 Health Care 9.69% 10.11%
Net Income From Discontinued Operations 1,995 229 1,754 449 467 -1,786 -108 Grooming 9.95% 9.75%
Corporate 0.92% 0.61%
Net Income Attributable to Proctor & Gamble 12,846 11,797 10,756 11,312 11,643 7,036 8,481
Operating Margin TTM
Fabric Care & Home Care 18.0% 18.2%
Other Earnings Data Beauty, Hair & Personal Care 18.1% 18.6%
Preferred Dividends -219 -233 -256 -244 -253 -259 Baby, Feminine & Family Care 20.6% 21.3%
Income Avail to Common Excl Extraordinary Items 10,727 11,564 10,500 11,068 11,390 6,777 Health Care 20.5% 22.0%
Grooming 32.3% 31.9%
Basic Weighted Average Shares 2,844 2,766 2,748 2,742 2,711 2,715 Corporate
Diluted Weighted Average Shares 3,099 3,002 2,941 2,931 2,905 2,884
Common stock dividend per share $1.80 $1.97 $2.14 $2.29 $2.29 $2.29
Basic Normalized EPS $3.70 $4.12 $3.82 $4.04 $4.20 $2.50
Diluted Normalized EPS $3.53 $3.93 $3.57 $3.78 $3.92 $2.35

Quarterly

Income Statement - As Reported Dec '15 Sep '15 Jun '15 Mar '15 Dec '14 Balance Sheet - As Reported Dec '15 Sep '15 Jun '15 Cash Flow - As Reported Dec '15 Sep '15 Jun '15
3 M 3 M 3 M 3 M 3 M 6 M 3 M 1 Y
Net sales 16,915 16,527 17,790 18,142 18,495 Cash and cash equivalents 9.4 7.7 6.8
Cost of products sold (8,460) (8,152) (9,257) (9,327) (9,558) Available-for-sale investments securities 4.9 4.9 4.8 Net earnings 5,863 2,635 7,144
Gross profit 8,455 8,375 8,533 8,815 8,937 Accounts receivable 4.7 4.7 4.9 Depreciation and amortization 1,454 731 3,134
Selling, general and administrative expense (4,602) (4,607) (5,575) (5,680) (5,358) Total inventories 5.1 5.2 5.5 Share-based compensation expense 140 67 337
Venezuela deconsolidation charge -- -- (2,028) -- -- Assets held for sale 9.2 9.4 3.5 Deferred income taxes 140 89 (803)
Operating income 3,853 3,768 930 3,135 3,579 Other CA 3.0 3.7 4.2 Gain / loss on sale / purchase of businesses (37) (7) (766)
Interest expense (143) (140) (147) (149) (160) Total current assets 36.3 35.6 29.6 Venezuela deconsolidation charge 2,028
Interest income 58 44 48 38 34 Goodwill and indefinite-lived intangible asset impairment 402 402 2,174
Other non-operating income / loss, net 35 (18) 438 53 19 Property, plant and equipment, net 18.9 19.1 20.3 Changes in
Earnings from continuing operations before inc taxes 3,803 3,654 1,269 3,077 3,472 Goodwill 44.2 44.6 47.3 Accounts receivable (488) (368) 349
Income taxes on continuing operations (898) (877) (629) (602) (798) Trademarks and other intangible assets, net 24.5 24.7 26.8 Inventories (386) (519) 313
Net earnings from continuing operations 2,905 2,777 640 2,475 2,674 Other non-current assets 5.2 5.2 5.4 Accounts payable, accrued and other liabilities 322 298 928
Net earnings / loss from discontinued operations 323 (142) (102) (287) (276) Total assets 129.1 129.3 129.5 Other operating assets and liabilities 374 141 (976)
Net earnings 3,228 2,635 538 2,188 2,398 Other 234 69 746
Net earnings attributable to noncontrolling interests (22) (34) (17) (35) (26) Accounts payable 7.7 7.8 8.3 Total operating activities 8,018 3,538 14,608
Net earnings attributable to Procter & Gamble 3,206 2,601 521 2,153 2,372 Accrued and other liabilities 7.9 8.5 8.3
Liabilities held for sale 2.5 2.2 1.2 Capital expenditures (1,223) (532) (3,736)
Debt due within one year 13.9 13.1 12.0 Proceeds from asset sales 80 38 4,497
Total current liabilities 32.1 31.6 29.8 Cash related to deconsolidated Venezuela operations -- -- (908)
Acquisitions, net of cash acquired (186) 0 (137)
Long-term debt 17.6 17.4 18.3 Purchases of short-term investments (762) (494) (3,647)
Other Liabilities 17.2 17.4 18.3 Proceeds from sales of short-term investments 683 418 1,203
Total liabilities 66.8 66.3 66.4 Change in other investments (31) 24 (163)
Total investing activities (1,439) (546) (2,891)
Preferred stock 1.1 1.1 1.1
Common stock 4.0 4.0 4.0 Dividends to shareholders (3,733) (1,865) (7,287)
Additional paid-in capital 63.8 63.7 63.9 Change in short-term debt 2,020 450 (2,580)
Reserve for ESOP debt retirement -1.3 -1.3 -1.3 Additions to long-term debt 1,721 -- 2,138
Accumulated other comprehensive income / loss -14.3 -13.7 -12.8 Reductions of long-term debt (2,239) (537) (3,512)
Treasury stock -78.5 -77.0 -77.2 Treasury stock purchases (2,503) (502) (4,604)
Retained earnings 86.9 85.6 84.8 Impact of stock options and other 1,007 483 2,826
Noncontrolling interest 0.7 0.7 0.6 Total financing activities (3,727) (1,971) (13,019)
Total shareholders' equity 62.3 63.0 63.1
Total liabilities and shareholders’ equity 129.1 129.3 129.5 Effect of exchange rate changes on cash and cash equiv (285) (152) (411)
Change in cash and cash equivalents 2,567 869 (1,713)
Cash and cash equivalents, beginning of period 6,836 6,836 8,558
Cash and cash equivalents, end of period 9,403 7,705 6,845

Oper expense

2010 2011 2012 2013 2014 2015 TTM
Reorganization & Restructure Expense * 0 0 1,100 956 757 1,055 362
Cost of Revenue 354 356 399 628 273
SG&A Expense 746 600 358 427 89
Depreciation 3,108 2,838 3,204 2,982 3,141 3,134 2,623
Amortization 425
Ongoing COGS w/o depr & amort & restruc
Total SG&A 24,793 25,750 25,984 26,000 24,760 23,585 20,464
Research & Development 1,851 1,897 1,947 1,940 1,984 2,047
Advertising 8,475 9,210 9,345 9,400 9,000 8,300
Other SG&A 14,467 14,643 13,946 14,060 13,418 12,811
Restructure expense 0 0 746 600 358 427 89
Ongoing SG&A 20,375
As a percent of sales 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Research & Development
Advertising
Other SG&A
Restructuring & reorganization
Ongoing SG&A

Intangibles

Intangible Assets
Determinable lives, Gross 2010 2011 2012 2013 2014 2015
Brands 3,284 3,392 3,297 4,251 4,154 3,678
Patents & Tech 3,140 3,195 3,164 2,976 2,850 2,627
Customer Relationships 1,947 2,121 2,048 2,118 2,002 1,621
Other 304 335 352 348 355 307
Total 8,675 9,043 8,861 9,693 9,361 8,233
Accumulate amortization 2010 2011 2012 2013 2014 2015
Brands 1,318 1,553 1,687 2,020 2,205 2,200
Patents & Tech 1,575 1,840 2,021 2,032 2,082 2,036
Customer Relationships 460 602 642 703 763 659
Other 205 217 218 168 164 156
Total 3,558 4,212 4,568 4,923 5,214 5,051
Determinable lives, Net 2010 2011 2012 2013 2014 2015 Gross - accum amort = Net
Brands
Patents & Tech
Customer Relationships
Other
Total 0 0 0 0 0 0
Intangible Assets w/indefinite lives
Brands 26,519 27,789 26,695 26,802 26,696 23,647
Total Intangible Assets 26,519 27,789 26,695 26,802 26,696 23,647
Intangible Amortization Expense 0 0 0 0 0 0

Segment

Sales Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Jun '08 Operating Income Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Fabric Care & Home Care 22,277 26,060 27,448 27,254 24,837 23,805 23,186 23,831 Fabric Care & Home Care 4,061 4,678 4,825 4,645 4,714 5,076 4,663 5,078
Beauty, Hair & Personal Care 18,135 19,507 19,956 20,318 20,157 19,491 18,789 19,515 Beauty, Hair & Personal Care 3,379 3,530 3,215 3,196 3,607 3,648 3,367 3,528
Baby, Feminine & Family Care 20,247 20,950 Baby, Feminine & Family Care 4,317 4,310
Health Care 7,713 7,798 12,830 12,421 12,033 11,493 13,623 14,578 Health Care 1,700 1,597 2,769 2,718 2,720 2,809 3,685 3,746
Grooming 7,441 8,009 8,038 8,339 8,025 7,631 7,543 8,254 Grooming 2,374 2,589 2,458 2,395 2,183 2,007 2,091 2,299
Historical Segments 16,790 16,493 15,606 14,736 14,103 13,898 Historical Segments 3,509 3,351 3,181 3,270 2,827 2,700
Total 76,279 83,062 84,167 83,680 82,559 78,938 79,029 83,503 Total 11,846 14,885 14,843 12,785 15,189 15,047 15,325 16,078
Sales % of Total Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Jun '08 Operating Income % of Total Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Fabric Care & Home Care 29.2% 31.4% 32.6% 32.6% 30.1% 30.2% 29.3% 28.5% Fabric Care & Home Care 34.3% 31.4% 32.5% 36.3% 31.0% 33.7% 30.4% 31.6%
Beauty, Hair & Personal Care 23.8% 23.5% 23.7% 24.3% 24.4% 24.7% 22.3% 23.2% Beauty, Hair & Personal Care 28.5% 23.7% 21.7% 25.0% 23.7% 24.2% 22.0% 21.9%
Baby, Feminine & Family Care 26.5% 25.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Baby, Feminine & Family Care 36.4% 29.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Health Care 10.1% 9.4% 15.2% 14.8% 14.6% 14.6% 16.2% 17.3% Health Care 14.4% 10.7% 18.7% 21.3% 17.9% 18.7% 24.0% 23.3%
Grooming 9.8% 9.6% 9.6% 10.0% 9.7% 9.7% 9.0% 9.8% Grooming 20.0% 17.4% 16.6% 18.7% 14.4% 13.3% 13.6% 14.3%
Historical Segments 0.0% 0.0% 19.9% 19.7% 18.9% 18.7% 16.8% 16.5% Historical Segments 0.0% 0.0% 23.6% 26.2% 20.9% 21.7% 18.4% 16.8%
% Growth Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Operating Margin Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09
Fabric Care & Home Care -14.5% -5.1% 0.7% 9.7% 4.3% 2.7% -2.7% Fabric Care & Home Care 18.2% 18.0% 17.6% 17.0% 19.0% 21.3% 20.1%
Beauty -7.0% -2.2% -1.8% 0.8% 3.4% 3.7% -3.7% Beauty, Hair & Personal Care 18.6% 18.1% 16.1% 15.7% 17.9% 18.7% 17.9%
Baby Care & Family Care -3.4% Baby, Feminine & Family Care 21.3% 20.6%
Health Care -1.1% -39.2% 3.3% 3.2% 4.7% -15.6% -6.6% Health Care 22.0% 20.5% 21.6% 21.9% 22.6% 24.4% 27.0%
Grooming -7.1% -0.4% -3.6% 3.9% 5.2% 1.2% -8.6% Grooming 31.9% 32.3% 30.6% 28.7% 27.2% 26.3% 27.7%
Historical Segments 1.8% 5.7% 5.9% 4.5% 1.5% Historical Segments 20.9% 20.3% 20.4% 22.2% 20.0%

ROIC

ROIC & Economic Profit Terminal
Value
percent 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
ROIC without goodwill (average) 309.13% 302.09% 299.25% 290.35% 296.65% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
ROIC with goodwill (average) 96.50% 96.39% 96.11% 95.41% 97.31% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
ROIC without goodwill (prior year) 330.07% 292.67% 305.53% 294.11% 271.03% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
ROIC with goodwill (prior year) 100.70% 93.27% 97.61% 94.94% 90.65% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
$ millions
NOPLAT $74,459 $78,266 $78,802 $77,134 $77,369 $73,145 ERROR:#DIV/0! $0 $0 $0 $0 $0
Capital charge
Economic profit
ROIC 100.70% 93.27% 97.61% 94.94% 90.65% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
WACC
Spread
Invested capitalt-1 77,724 84,487 79,019 81,494 80,692 69,642 0 0 0 0 0
Economic profit w/goodwill
NOPLAT (adjusted values) Terminal
Value
$ millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Revenue 77,567 81,104 82,006 80,116 80,510 76,279 76279
Cost of Revenue 0 0 0 0 0 0 0
SG&A expense 0 0 0 0 0 0 0
Depreciation expense 3,108 2,838 3,204 2,982 3,141 3,134 ERROR:#DIV/0!
Amortization expense 0 0 0 0 0 0
Operating Profit (EBITA) 74,459 78,266 78,802 77,134 77,369 73,145 ERROR:#DIV/0! 0 0 0 0 0
Taxes (use effective tax rate)
NOPLAT 74,459 78,266 78,802 77,134 77,369 73,145 ERROR:#DIV/0! 0 0 0 0 0
Invested Capital Terminal
Value
$ millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating Cash
Accounts Receivable - Trade, Net 5,335 6,275 6,068 6,508 6,386 4,861
Inventory 6,384 7,379 6,721 6,909 6,759 5,454
Prepaid expenses & Other CA ??
Operating current assets 11,719 13,654 12,789 13,417 13,145 10,315 0 0 0 0 0 0
Accounts Payable 7,251 8,022 7,920 8,777 8,461 8,257
Accrued & other CL ??
Operating current liabilities 7,251 8,022 7,920 8,777 8,461 8,257 0 0 0 0 0 0
Operating working capital 4,468 5,632 4,869 4,640 4,684 2,058 0 0 0 0 0 0
PP&E, Net 19,244 21,293 20,377 21,666 22,304 20,268
Intangibles determinable lived
Operating Leases ???
Other long term assets ???
Invested Capital 23,712 26,925 25,246 26,306 26,988 22,326 0 0 0 0 0 0
Goodwill, Net 54,012 57,562 53,773 55,188 53,704 47,316
Intangibles , acquired (indefinite lived)
Invested Capital w/ acquisitions 77,724 84,487 79,019 81,494 80,692 69,642 0 0 0 0 0 0
Excess Cash
All other non-oper assets
Total Funds Invested (Uses) 77,724 84,487 79,019 81,494 80,692 69,642 0 0 0 0 0 0
Total Funds Invested (Sources) 2010 2011 2012 2013 2014 2015
ST Debt& Current portion of Lt Debt 8,472 9,981 8,698 12,432 15,606 12,021
Operating Leases 0 0 0 0 0 0
Long Term Debt 21,360 22,033 21,080 19,111 19,811 18,329
Other Debt and equivalents
Debt & Debt Equivalents 29,832 32,014 29,778 31,543 35,417 30,350
Noncontrolling Interest 324 361 596 645 762 631
Redeemable Convertible Preferred Stock 1,277 1,234 1,195 1,137 1,111 1,077
Common Stock 4,008 4,008 4,008 4,009 4,009 4,009
Additional Paid-In Capital 61,697 62,405 63,181 63,538 63,911 63,852
Retained Earnings (Accumulated Deficit) 64,614 70,682 75,349 80,197 84,990 84,807
Treasury Stock - Common -61,309 -67,278 -69,604 -71,966 -75,805 -77,226
Accumulated & Other Comprehensive Income -10,773 -5,006 -10,690 -8,851 -9,002 -14,100
Equity equivalents
Equity & Equity equivalents 59,838 66,406 64,035 68,709 69,976 63,050
Total Funds Invested 89,670 98,420 93,813 100,252 105,393 93,400
Check error error error error error error
$ millions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Capital Expenditures Capex = PPE1 - PPE0 + depr
Check data: Capex as a % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!

Forecasts

Forecasts ** 2021 is the terminal value year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Growth of revenue 1.14% 4.56% 1.11% -2.30% 0.49% -5.26%
Percent of revenue, unless noted
Cost of Revenue
SG&A 0 0 0 0 0
EBITDA margin 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Depreciation (% of PP&E)
Amortization (% of definite lived intang)
Operating Income (EBITA) margin 96.0% 96.5% 96.1% 96.3% 96.1% 95.9% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
Effective tax rate 27.02% 22.00% 26.96% 22.75% 21.06% 24.62%
Invested Capital
Days Sales unless noted 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating Cash
Accounts Receivable
Inventory
Prepaid expenses (% of revenue)
Other current assets ?? (% of revenue)
Accounts Payable
Accrued expenses (% of revenue)
Other current liabilities ?? (% of revenue)
Percent of revenue
Plant, property & equip, net
Intangibles determinable lived
Operating Leases
Other long term assets ???
$ millions
Goodwill
Intangible assets, acq (indefinite lived)
Percent of revenue
Excess Cash
State other non-operating assets

WACC

Procter & Gamble Co (PG) Latest Latest Calculate Beta here
Cusip Number Description Current Amt Out Coupon Maturity Seniority Price YTW
FDSF299C7 Commercial Paper* 8,807.0 -- 12/2016 SNR Unsec -- --
742718ED7 Other P&G ST Debt 3,214.0 75.000% 11/2016 SNR Unsec 99.99 0.77
Total debt due within the year 12,021.0
Assume settlement date of 2/26/16
U74271PA6 Procter & Gamble Co - EUR* 1,131.0 512.500% 10/2017 SNR Unsec 108.86 0.80
742718EE5 Procter & Gamble Co* 1,000.0 160.000% 11/2018 SNR Unsec 101.51 1.04
742718EG0 Procter & Gamble Co* 550.0 190.000% 11/2019 SNR Unsec 102.73 1.15
742718DN6 Procter & Gamble Co* 1,600.0 470.000% 02/2019 SNR Unsec 110.15 1.25
U74271LB8 Procter & Gamble Co - EUR* 671.0 412.500% 12/2020 SNR Unsec 118.59 0.32
742718EK1 Procter & Gamble Co - JPY* 618.0 27.500% 05/2020 SNR Unsec 101.22 0.45
742741AA9 Procter & Gamble Co - ESOP* 672.0 936.000% 01/2021 SNR Unsec 120.03 1.99
U74271QC1 Procter & Gamble Co - EUR* 839.0 200.000% 11/2021 SNR Unsec 108.41 0.51
742718DY2 Procter & Gamble Co* 1,500.0 230.000% 02/2022 SNR Unsec 2.03
742718EA3 Procter & Gamble Co - EUR* 1,119.0 200.000% 08/2022 SNR Unsec 108.78 0.62
742718EB1 Procter & Gamble Co* 1,600.0 310.000% 08/2023 SNR Unsec 106.03 2.22
U74271NP5 Procter & Gamble Co - EUR* 1,119.0 487.500% 05/2027 SNR Unsec 138.35 1.23
U74271CL6 Procter & Gamble Co - GBP* 960.0 625.000% 01/2030 SNR Unsec 137.48 2.93
742718CB3 Procter & Gamble Co* 800.0 550.000% 02/2034 SNR Unsec 123.38 3.71
742718DB2 Procter & Gamble Co* 850.0 580.000% 08/2034 SNR Unsec 128.69
742718DF3 Procter & Gamble Co* 1,400.0 555.000% 03/2037 SNR Unsec 125.89 3.76
742718EP Procter & Gamble Co 1,300.0 270.000% 02/2026 SNR Unsec 101.40 2.54
742718EN Procter & Gamble Co 600.0 185.000% 02/2021 SNR Unsec 101.00 1.64
Total LT Debt 18,329.0
Total BV Debt
Total MV Debt
Weighted Kd
MV (billions) Default Risk Prem Credit Rating
MV Debt Kd with spread Industry
MV Equity Source & date
Total capital Interest Expense
Kd with BV Debt
Beta - 3 year Unlevered ERROR:#DIV/0!
Risk free Security Used
Risk prem Method Used
Cost of Equity (Ke)
WACC
Historical 2011 2012 2013 2014 2015 12/31/15
Fiscal Yr End Share Price
Basic shs outstanding
Diluted shs outstanding
Tax Rate

Valuation

Historical values Forecasted Values
(millions) 2011 2012 2013 2014 2015 TTM CAGR 2016 2017 2018 2019 2020 TV
Sales 81,104 82,006 80,116 80,510 76,279 69,374 76,279 0 0 0 0
growth rate 4.6% 1.1% -2.3% 0.5% -5.3% -9.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
COGS 0 0 0 0 0 0 0 0 0 0 0
Gross profit 81,104 82,006 80,116 80,510 76,279 69,374 76,279 0 0 0 0
gross margin 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
SG&A 0 0 0 0 0 20,375 0 0 0 0 0
% of sales 0.0% 0.0% 0.0% 0.0% 0.0% 29.4% 0.0% 0.0% 0.0% 0.0% 0.0%
EBITDA 81,104 82,006 80,116 80,510 76,279 48,999 76,279 0 0 0 0
EBITDA margin 100.0% 100.0% 100.0% 100.0% 100.0% 70.6% 100.0% 100.0% 100.0% 100.0% 100.0%
Depreciation 2,838 3,204 2,982 3,141 3,134 ERROR:#DIV/0! 0 0 0 0
% of Net PP&E 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
EBITA 78,266 78,802 77,134 77,369 73,145 ERROR:#DIV/0! 0 0 0 0
EBIT margin 96.5% 96.1% 96.3% 96.1% 95.9% ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
tax expense 17,217 21,248 17,549 16,292 18,005 ERROR:#DIV/0! 0 0 0 0
tax rate 22.0% 27.0% 22.8% 21.1% 24.6%
NOPLAT 61,049 57,554 59,585 61,077 55,140 ERROR:#DIV/0! 0 0 0 0
plus: Depr 2,838 3,204 2,982 3,141 3,134 ERROR:#DIV/0! 0 0 0 0
less: Capex 0 0 0 0 0 0 0 0 0 0
less: Change NWC 1,164 -763 -229 44 -2,626 -2,058 0 0 0 0
FCF 62,723 61,521 62,796 64,174 60,900
Time
WACC 0% PV of FCF
implied 0%
Enterprise Value Equity Value w/ Multiple Perpetuity growth rate growth excess
Sum of PV FCF Enterprise V 0.0 Terminal ROIC 0%
Exit Multiple (EBITDA/EV) Less: debt Terminal growth rate 0.0% 0%
Terminal Value Less: debt equiv Terminal Value
Non-operating assets
Excess Cash Equity Value Enterprise Value
Other nonoperating assets
Dilulted shs outstanding Equity Value
Enterprise Value
Equity Value/ share Equity Value/ share
Equity Value Exit Multiple Equity Value Perpetuity Growth Rate
WACC WACC
TTM EPS Sensitivity to Revenue growth and EBIT or
EBITDA margin are also good things to look at
Multiple ROIC
Implied Equity Value/ share $0.00 $0.00
Implied P/E Ratio ERROR:#DIV/0! ERROR:#DIV/0!
Historical LT Average P/E ratio 20.31x
Historical 5 yr Average P/E ratio 22.45x
High P/E Ratio 32.31x
Low P/E Ratio 14.11x
Median P/E Ratio 19.60x
Current EBITDA $48,999
Multiple ROIC
Implied Enterprise Value $0.00 $0.00
Implied EV/ EBITDA Ratio 0.00 0.00
Historical LT Average EV / EBITDA 11.55x
Historical 5 yr Average EV/EBITDA ratio 12.02x
High EV/ EBITDA Ratio 12.88x
Low EV/ EBITDA Ratio 8.87x
Median EV/ EBITDA Ratio 11.96x

Multiples

Procter & Gamble Company
Source : FactSet Fundamentals
Valuation (x) Dec '15 Jun '15 Jun '14 Jun '13 Jun '12 Jun '11 Jun '10 Jun '09 Jun '08 Jun '07 Jun '06
Price/Sales 3.28 2.96 2.75 2.68 2.15 2.31 2.35 2.04 2.42 2.72 2.68
Price/Earnings 27.40 32.31 19.60 19.95 19.29 16.18 16.67 14.11 16.71 20.13 21.06
Price/Book Value 3.55 3.46 3.13 3.15 2.65 2.59 2.79 2.36 2.66 2.87 2.88
Price/Cash Flow 14.62 15.44 16.35 15.17 13.56 14.42 11.57 10.80 12.75 15.48 16.06
Price/Free Cash Flow 18.58 20.75 22.58 20.77 19.33 19.23 14.29 13.80 15.80 19.82 20.98
Enterprise Value/EBIT 15.49 14.82 15.07 15.32 11.36 14.22 11.69 10.45 13.87 14.40 15.09
Enterprise Value/EBITDA 12.88 12.36 12.59 12.86 9.57 11.88 9.88 8.87 11.54 11.96 12.68
Enterprise Value/Sales 3.37 3.05 2.89 2.83 2.32 2.49 2.51 2.29 2.61 2.90 3.06
EPS PE Ratio PE Ratio PE Ratio EV / EV / EV / Debt/ Debt/
FY1 Actual FY1 LTM Sales EBIT EBITDA EBITDA EV
P&G 3.62 28.22x 22.56x 21.02x 3.46x 15.91x 13.24x 1.74x 1,312.54%
Average 4.93 25.75x 21.28x 21.06x 3.30x 16.52x 14.07x 1.32x 948.65%
Median 6.11 21.24x 21.36x 21.12x 3.38x 16.24x 14.22x 1.53x 1,032.57%
Johnson & Johnson 6.51 19.95x 15.99x 15.86x 3.83x 14.35x 12.00x 0.88x 729.73%
Kimberly-Clark 6.11 47.09x 21.36x 21.12x 2.93x 16.24x 13.28x 1.89x 1,426.44%
Colgate-Palmolive 2.77 24.99x 24.39x 24.10x 4.02x 16.44x 14.77x 1.53x 1,032.57%
Unilever 2.08 21.24x 20.79x 20.58x 2.34x 15.93x 14.22x 1.70x 1,194.16%
L'Oreal 7.20 15.46x 23.86x 23.64x 3.38x 19.66x 16.09x 0.62x 360.33%
Comps Source: User Defined Comparables

Print screen

Some print screens you might want to include to support breakdown of invested capital and operating expense line items
COGS, SG&A, noncurrent assets, restructuring, accrued and other liabilities, other non-current liabilities, amortization
You should show all relevant sourcing as a print screen as well as footnotes if necessary

Operating Lease

Sample print screen supporting the judgement of excluding oper leases from the analysis for P&G