Exhibit 11
ALBEMARLE CORPORATION
COMPUTATION OF PRO FORMA EARNINGS PER SHARE
for the years ended December 31, 2003, 2002 and 2001
(In thousands except per share amounts)
Pro Forma 2003 | Pro Forma 2002 | Pro Forma 2001 | ||||||||
BASIC EARNINGS PER SHARE | ||||||||||
Numerator: | ||||||||||
Income before cumulative effect of a change in accounting principle, net and after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 70,658 | $ | 70,398 | $ | 66,476 | ||||
Cumulative effect of a change in accounting principle, net | (2,220 | ) | — | — | ||||||
Net income after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 68,438 | $ | 70,398 | $ | 66,476 | ||||
Denominator: | ||||||||||
Average number of shares of common stock outstanding | 41,255 | 42,104 | 45,766 | |||||||
Income before cumulative effect of a change in accounting principle, net and after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 1.71 | $ | 1.67 | $ | 1.45 | ||||
Cumulative effect of a change in accounting principle, net | (0.05 | ) | — | — | ||||||
Basic earnings per share | $ | 1.66 | $ | 1.67 | $ | 1.45 | ||||
DILUTED EARNINGS PER SHARE | ||||||||||
Numerator: | ||||||||||
Income before cumulative effect of a change in accounting principle, net and after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 70,658 | $ | 70,398 | $ | 66,476 | ||||
Cumulative effect of a change in accounting principle, net | (2,220 | ) | — | — | ||||||
Net income after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 68,438 | $ | 70,398 | $ | 66,476 | ||||
Denominator: | ||||||||||
Average number of shares of common stock outstanding | 41,255 | 42,104 | 45,766 | |||||||
Shares issuable upon the assumed exercise of outstanding stock options and other common stock equivalents | 1,070 | 1,190 | 765 | |||||||
Total pro forma shares | 42,325 | 43,294 | 46,531 | |||||||
Income before cumulative effect of a change in accounting principle, net and after effect of applying SFAS No. 123 “Accounting for Stock-Based Compensation” | $ | 1.67 | $ | 1.63 | $ | 1.43 | ||||
Cumulative effect of a change in accounting principle, net | (0.05 | ) | — | — | ||||||
Diluted earnings per share | $ | 1.62 | $ | 1.63 | $ | 1.43 | ||||