JONES APPAREL GROUP, INC.
Computation of Basic and Diluted Earnings per Share
(In millions except per share amounts)
For the Year Ended December 31,
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2004 2003 2002
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Basic Earnings per Share:
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Net income........................... $301.8 $328.6 $318.5
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Weighted average number of shares
outstanding.......................... 123.6 127.3 128.2
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Basic earnings per share............. $2.44 $2.58 $2.48
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Diluted Earnings per Share:
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Net income........................... $301.8 $328.6 $318.5
Add: interest expense associated
with convertible notes,
net of tax benefit.............. 0.8 9.5 9.1
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Income available to common
shareholders....................... $302.6 $338.1 $327.6
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Weighted average number of shares
outstanding........................ 123.6 127.3 128.2
Effect of dilutive securities:
Employee stock options............. 2.2 1.3 2.9
Assumed conversion of convertible
notes............................ 0.7 7.9 7.9
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126.5 136.5 139.0
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Diluted earnings per share.......... $2.39 $2.48 $2.36
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