Chapter 12
Using Accounting Information
354
the Procter & gamble company
consolidated statement of earnings
amounts in millions except per share amounts; Year ended June 29, 2014
2014
net sales
$83,062
Cost of products sold
42,460
Selling, general and administrative expense
25,314
goodwill and indefinite lived intangibles impairment charges
–
oPerating income
15,288
Interest expense
709
Interest Income
100
Other non-operating income/(expense), net
206
eArNINgS FrOM CONTINUINg OPerATIONS BeFOre INCOMe TAXeS
14,885
Income taxes on continuing operations
3,178
NeT eArNINgS FrOM CONTINUINg OPerATIONS
11,707
net earnings from DiscountinueD oPerations
78
net earnings
11,785
Less: Net earnings attributable to noncontrolling interests
142
net earnings attriButaBle to Procter & gamBle
$11,643
Basic net earnings Per common sHare:
earnings from continuing operations
$4.16
earnings from discontinued operations
0.03
Basic net earnings Per common sHare
4.19
DiluteD net earnings Per common sHare
earnings from continuing operations
$3.98
earnings from discontinued operations
0.03
DiluteD net earnings Per common sHare
4.01
DiViDenDs Per common sHare
$2.45
(1) Basic net earnings per common share and diluted net earnings per
common share are calculated on net earnings attributable to Procter & gamble
_______________
FIgUre 12.3
Discontinued operation
A
discontinued operation
is a segment of a business that is no longer part of regular operating
activities. However, other business segments are still operational. There are a variety of reasons that
a corporation may want to discontinue a business segment. For example, the segment may no longer
be profitable, so the corporation is shutting it down or selling it. Or management has shifted the
corporate mission and the segment no longer fits the company’s focus.
Normally, sole proprietorships have a single business segment, meaning the business only has one
type of operation (e.g. providing a service or operating as a retailer).Because corporations are usually
larger in nature, they tend to be divided into more than one business segment.These segments may
operate independently and contribute to the revenues and expenses of the corporation as a whole.
Discontinued operations are accounted for and presented in the financial statements in the
following manner. The corporation liquidates the net assets of the discontinued business segment.
The revenues and expenses generated by discontinued operations, as well as any gains or losses
