NBCUniversal Media, LLC Consolidated Statement of Comprehensive Income
## Table 0 ##
costs may be tied to a different functional currency than the underlying sales), the impacts of manufacturing savings projects and reinvestments (for example, product or package improvements) and to a lesser extent scale impacts (for costs that are fixed or less variable in nature).
The primary components of SG&A are marketing-related costs and nonmanufacturing overhead costs.
Marketing-related costs are primarily variable in nature, although we may achieve some level of scale benefit over time due to overall growth and other marketing efficiencies.
While overhead costs are variable to some extent, we generally experience more scale-related impacts for these costs due to our ability to leverage our organization and systems infrastructures to support business growth.
Adetailed discussion of the fiscal 2018 year-over-year changes can be found in the MD&A section in the Form 8-K filed October 22, 2018, which updated our Form 10-K for the year ended June 30, 2018, to revise disclosures to reflect the adoption of the Financial Accounting Standards Board (FASB) ASU 2017-07 and 2016-18.
For more information on the adoption of this standard, refer to Note 1 to the Consolidated Financial Statements.
Net Sales Net sales increased 1% to $67.7 billionin 2019 on a 3%increase in unit volume versus the prior year.
Volume increased midsingle digits in Health Care and Fabric & Home Care and increased low single digits in Beauty and Baby, Feminine & Family Care.
Volume decreased low single digits in Grooming.
Volume increased mid-single digits in developed regions and low single digits in developing regions.
Excluding the impact of acquisitions and divestitures, organic volume increased low single digits in developed regions.
Unfavorable foreign exchange reduced net sales by 4%.
Pricing had a positive 2% impact on net sales.
Product mix had a positive 1% impact on net sales driven by the slightly higher organic growth of the Skin and Personal Care and Personal Health Care categories and developed regions, all of which have higher than company average selling prices.
Organic sales grew 5% driven by a 2% increase in organic volume.
Operating Costs
## Table 1 ##
Gross margin increased 10 basis points to 48.6% of net sales in 2019.
Gross margin benefited 160 basis points from total manufacturing cost savings (130 basis points net of product and packaging reinvestments), 60 basis points of positive pricing impacts and 50 basis points from lower restructuring costs.
These were offset by: ?
a 100 basis-point decline from unfavorable product mix and other impacts (primarily mix within segments due to the growth of lower margin product forms and the club channel in certain categories and due to the disproportionate growth of the Fabric Care category, which is one of our largest categories and has lower than company-average gross margins), ?
an 80 basis-point negative impact due to higher commodity costs and ?
a 50 basis-point negative impact from unfavorable foreign exchange.
Total SG&A was relatively unchanged at $19.1 billion, as a decrease in marketing spending was offset by an increase in overhead costs and in other net operating expenses.
SG&A as a percentage of net sales decreased 30 basis points to 28.2%.
Reductions in marketing spending as a percentage of net sales were partially offset by an increase in overhead costs and other net operating expenses as a percentage of sales.  ?
Marketing spending as a percentage of net sales decreased 80 basis points due to the positive scale impacts of the organic net sales increase, reductions in agency compensation and the impact of adopting the new standard on "Revenue from Contracts with Customers" which prospectively reclassified certain customer spending from marketing (SG&A) expense to a reduction of net sales.  ?
Overhead costs as a percentage of net sales increased 30 basis points, as productivity savings and fixed cost leverage from the increased organic net sales, were more than offset by the impact of inflation, higher incentive compensation costs and other cost increases, including the ongoing and integration-related overhead costs of the Merck OTC acquisition.  ?
Other net operating expenses as a percentage of net sales increased 20 basis points primarily due to an increase in foreign exchange transactional charges and the net impact of changes in indirect tax reserves, partially offset by the gain on sale of real estate in the current year.
Net earnings per share were calculated as follows:
## Table 2 ##
(1) Weighted average outstanding stock options of approximately 13 million in 2019, 48 million in 2018 and 20 million in 2017 were not included in the Diluted net earnings per share calculation because the options were out of the money or to do so would have been antidilutive (i. e. , the assumed proceeds upon exercise would have exceeded the market value of the underlying common shares).
(2) Despite being included in Diluted net earnings per common share, the actual conversion to common stock occurs when the preferred shares are sold.
Shares may only be sold after being allocated to the ESOP participants pursuant to the repayment of the ESOP's obligations through 2035.
In fiscal year 2019, weighted average outstanding preferred shares of 90 million were not included in the Diluted net earnings per share calculation because to do so would have been antidilutive, due to lower Net earnings driven by the Shave Care impairment charges (see Note 4).
(3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
NOTE 7 STOCK-BASED COMPENSATION We have two primary stock-based compensation programs under which we annually grant stock option, restricted stock unit (RSU) and performance stock unit (PSU) awards to key managers and directors.
In our main long-term incentive program, key managers can elect to receive options or RSUs.
All options vest after three years and have a 10-year life.
Exercise prices on options are set equal to the market price of the underlying shares on the date of the grant.
Effective in fiscal year 2017, RSUs vest and settle in shares of common stock three years from the grant date.
RSUs granted prior to fiscal year 2017 vest and settle in shares of common stock five years from the grant date.
Senior-level executives participate in an additional long-term incentive program that awards PSUs, which are paid in shares after the end of a three-year performance period subject to preestablished performance goals.
Effective in fiscal year 2019, we added a Relative Total Shareholder Return (R-TSR) modifier to the PSU, under which the number of shares ultimately granted is also impacted by the Company's actual shareholder return relative to our consumer products competitive peer set.
In addition to these long-term incentive programs, we award RSUs to the Company's non-employee directors and make other minor stock option and RSU grants to employees for which the terms are not substantially different from our longterm incentive awards.
Atotal of 185 million shares of common stock were authorized for issuance under the stock-based compensation plan approved by shareholders in 2014, of which 41 million shares remain available for grant.
The Company recognizes stock-based compensation expense based on the fair value of the awards at the date of grant.
The fair value is amortized on a straight-line basis over the requisite service period.
Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation expense from the grant date through the date the employee first becomes eligible to retire and is no longer required to provide services to earn the award.
Stock-based compensation expense is included as part of Cost of products sold and SG&Ain the Consolidated Statement of Earnings and Amounts in millions of dollars except per share amounts or as otherwise specified.

Tables referenced above, in order (Table 0 first):
<table><tr><td>Year ended December 31 (in millions)</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Net income</td><td>$3,624</td><td>$3,297</td><td>$2,122</td></tr><tr><td>Deferred gains (losses) on cash flow hedges, net</td><td>-21</td><td>25</td><td>-5</td></tr><tr><td>Employee benefit obligations, net</td><td>60</td><td>-106</td><td>95</td></tr><tr><td>Currency translation adjustments, net</td><td>-121</td><td>-62</td><td>-41</td></tr><tr><td>Comprehensive income</td><td>3,542</td><td>3,154</td><td>2,171</td></tr><tr><td>Net (income) loss attributable to noncontrolling interests</td><td>-210</td><td>-182</td><td>-154</td></tr><tr><td>Other comprehensive (income) loss attributable to noncontrolling interests</td><td>29</td><td>—</td><td>—</td></tr><tr><td>Comprehensive income attributable to NBCUniversal</td><td>$3,361</td><td>$2,972</td><td>$2,017</td></tr></table>
<table><tr><td>Comparisons as a percentage of net sales; Years ended June 30</td><td>2019</td><td>2018</td><td>Basis Point Change</td></tr><tr><td>Gross margin</td><td>48.6%</td><td>48.5%</td><td>10</td></tr><tr><td>Selling, general and administrative expense</td><td>28.2%</td><td>28.5%</td><td>-30</td></tr><tr><td>Operating margin</td><td>8.1%</td><td>20.0%</td><td>-1,190</td></tr><tr><td>Earnings from continuing operations before income taxes</td><td>9.0%</td><td>19.9%</td><td>-1,090</td></tr><tr><td>Net earnings</td><td>5.9%</td><td>14.8%</td><td>-890</td></tr><tr><td>Net earnings attributable to Procter & Gamble</td><td>5.8%</td><td>14.6%</td><td>-880</td></tr></table>
<table><tr><td>Years ended June 30</td><td rowspan="2">2019 Total</td><td rowspan="2">2018 Total</td><td colspan="3">2017</td></tr><tr><td>CONSOLIDATED AMOUNTS</td><td>Continuing Operations</td><td>Discontinued Operations</td><td>Total</td></tr><tr><td>Net earnings</td><td>$3,966</td><td>$9,861</td><td>$10,194</td><td>$5,217</td><td>$15,411</td></tr><tr><td>Less: Net earnings attributable to noncontrolling interests</td><td>69</td><td>111</td><td>85</td><td>—</td><td>85</td></tr><tr><td>Net earnings attributable to P&G</td><td>3,897</td><td>9,750</td><td>10,109</td><td>5,217</td><td>15,326</td></tr><tr><td>Less: Preferred dividends, net of tax</td><td>263</td><td>265</td><td>247</td><td>—</td><td>247</td></tr><tr><td>Net earnings attributable to P&G available to common shareholders (Basic)</td><td>$3,634</td><td>$9,485</td><td>$9,862</td><td>$5,217</td><td>$15,079</td></tr><tr><td>Net earnings attributable to P&G available to common shareholders (Diluted)</td><td>$3,634</td><td>$9,750</td><td>$10,109</td><td>$5,217</td><td>$15,326</td></tr><tr><td>SHARES IN MILLIONS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic weighted average common shares outstanding</td><td>2,503.6</td><td>2,529.3</td><td>2,598.1</td><td>2,598.1</td><td>2,598.1</td></tr><tr><td>Add: Effect of dilutive securities</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Impact of stock options and other unvested equity awards<sup>-1</sup></td><td>35.9</td><td>32.5</td><td>43.0</td><td>43.0</td><td>43.0</td></tr><tr><td>Conversion of preferred shares<sup>-2</sup></td><td>—</td><td>94.9</td><td>99.3</td><td>99.3</td><td>99.3</td></tr><tr><td>Diluted weighted average common shares outstanding</td><td>2,539.5</td><td>2,656.7</td><td>2,740.4</td><td>2,740.4</td><td>2,740.4</td></tr><tr><td>NET EARNINGS PER SHARE<sup>-3</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.45</td><td>$3.75</td><td>$3.79</td><td>$2.01</td><td>$5.80</td></tr><tr><td>Diluted</td><td>$1.43</td><td>$3.67</td><td>$3.69</td><td>$1.90</td><td>$5.59</td></tr></table>

Question: In what year is Net earnings greater than 1?
Answer: 201920182017