Exhibit 11
ITT EDUCATIONAL SERVICES, INC.
COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE
(In thousands, except per share data)
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| Three Months Ended September 30, |
| Nine Months Ended September 30, |
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| 2002 |
| 2001 |
| 2002 |
| 2001 |
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Net income |
| $ | 12,101 |
| $ | 9,179 |
| $ | 25,261 |
| $ | 19,045 |
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Shares: |
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Weighted average number of shares of common stock outstanding (a) |
| 45,668 |
| 47,590 |
| 45,914 |
| 47,356 |
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Shares assumed issued (less shares assumed purchased for treasury) on stock options (a) |
| 838 |
| 1,072 |
| 1,054 |
| 996 |
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Outstanding shares for diluted earnings per share calculation (a) |
| 46,506 |
| 48,662 |
| 46,968 |
| 48,352 |
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Earnings per common share: |
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Basic |
| $ | 0.26 |
| $ | 0.19 |
| $ | 0.55 |
| $ | 0.40 |
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Diluted |
| $ | 0.26 |
| $ | 0.19 |
| $ | 0.54 |
| $ | 0.39 |
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(a) The number of shares for all prior periods have been restated to reflect the two-for-one stock split declared on May 10, 2002 that became effective on June 6 , 2002.