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P & G The Procter & Gamble Company Regulation G Reconciliation of Non - GAAP Measures The following provides definitions of the non - GAAP measures used in Procter & Gamble's ( " the Company " ) October 13 , 2026 , Annual Meeting of Shareholders and the reconciliation to the most closely related GAAP measure . We believe that these non - GAAP measures provide useful perspective on underlying business trends ( i.e. , trends excluding non - recurring or unusual items ) and results and provide a supplemental measure of year - on - year results . The non - GAAP measures described below are used by Management in making operating decisions , allocating financial resources and for business strategy purposes . These measures may be useful to investors , as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of Management . These measures are also used to evaluate senior management and are a factor in determining their at - risk compensation . These non - GAAP measures are not intended to be considered by the user in place of the related GAAP measure , but rather as supplemental information to our business results . These non - GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted . Note that certain columns and rows may not add due to rounding . The following measures are provided : 1. Organic sales growth page 2 2 . Core EPS and Currency - neutral Core EPS page 2 3. Adjusted free cash flow and adjusted free cash flow productivity - page 2 The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items : • Incremental restructuring : The Company has historically had an ongoing level of restructuring activities of approximately $ 250 - $ 500 million before tax . In June 2025 , the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and invest in growth . The Company incurred over half of the costs under this plan in fiscal 2026 , with the remainder expected to be incurred in fiscal 2027. In the fiscal year ended June 30 , 2024 , the Company started a limited market portfolio restructuring of its business operations , primarily in certain Enterprise Markets , including Argentina and Nigeria , to address challenging macroeconomic and fiscal conditions . During the period ended September 30 , 2024 , the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina . The adjustment to Core earnings includes the restructuring charges that exceed the normal , recurring level of restructuring charges . Glad joint venture agreement : In January 2026 , the Glad joint venture agreement between the Company and Clorox expired . Under the terms of the agreement , Clorox purchased the Company's minority interest in the venture at fair market value for $ 476 million . This transaction was accounted for as a dissolution of the Glad joint venture business and the Company recorded an after - tax gain of $ 261 million . We do not view the above items to be part of our sustainable results , and their exclusion from Core earnings measures provides a more comparable measure of year - on - year results . These items are also excluded when evaluating senior management in determining their at- risk compensation . Organic sales growth : Organic sales growth is a non - GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year - over - year comparisons . We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis . This measure is also used in assessing the achievement of management goals for at - risk compensation . Core EPS and currency - neutral Core EPS : Core net earnings per share , or Core EPS , is a measure of diluted net earnings per common share ( diluted EPS ) excluding items that are not judged by management to be part of the Company's sustainable results or trends . Currency - neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange . Management views these non - GAAP measures as useful supplemental measures of Company performance over time . These measures are also used in assessing the achievement of management goals for at - risk compensation . Adjusted free cash flow : Adjusted free cash flow is defined as operating cash flow less capital spending and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act . Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion . We view adjusted free cash flow as an important measure because it is one factor used in determining the amount of cash available for dividends , share repurchases , acquisitions and other discretionary investments . 1