EXHIBIT 11(ii)
Page 1 of 2
INGERSOLL-RAND COMPANY
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(In thousands of dollars except for shares and per share amounts)
Years ended December 31,
1993 1992 1991 1990 1989
FULLY DILUTED EARNINGS PER SHARE:
Net earnings before effect of
accounting changes and
extraordinary item........... $ 163,524 $ 115,594 $ 150,589 $ 185,343 $ 202,225
Less dividends on preference
stock ..................... -- -- -- 1,838 7,498
Earnings before effect of
accounting changes and
extraordinary item........... 163,524 115,594 150,589 183,505 194,727
Effect of accounting changes:
- Postemployment benefits (21,000) -- -- -- --
- Postretirement benefits
other than pensions........ -- (332,000) -- -- --
- Income taxes............... -- (18,000) -- -- --
Extraordinary item............. -- -- -- -- 8,526
Net earnings (loss)............ $ 142,524 $ (234,406) $ 150,589 $ 183,505 $ 203,253
Average number of common
shares outstanding........... 104,991,535 104,340,622 103,634,178 103,351,708 102,842,942
Number of common shares
issuable assuming exercise
under incentive stock plans.. 600,429 738,149 632,056 639,836 714,992
Average number of outstanding
shares, as adjusted for
fully diluted earnings per
share calculations........... 105,591,964 105,078,771 104,266,234 103,991,544 103,557,934
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EXHIBIT 11(ii)
Page 2 of 2
INGERSOLL-RAND COMPANY
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(In thousands of dollars except for shares and per share amounts)
(Continued)
Years ended December 31,
1993 1992 1991 1990 1989
Fully diluted earnings per share:
Earnings before effect of
accounting changes and
extraordinary item........... $ 1.55 $ 1.10 $1.44 $1.76 $1.88
Effect of accounting changes:
- Postemployment benefits (0.20) -- -- -- --
- Postretirement benefits
other than pensions...... -- (3.16) -- -- --
- Income taxes............. -- (0.17) -- -- --
Extraordinary item........... -- -- -- -- 0.08
Fully diluted earnings (loss) per
share........................ $ 1.35 $(2.23) $1.44 $1.76 $1.96
Notes: All common share and per share amounts have been adjusted for the 2-for-1 stock split which
was made in the form of a stock dividend in 1992. This calculation is presented in accordance with
the Securities Exchange Act of 1934, although it is not required disclosure under APB Opinion No.
15. Net earnings per share of common stock computed on a fully diluted basis are based on the
average number of common shares outstanding during each year after adjustment for individual
securities which may be dilutive. Securities entering into consideration in making this calculation
are common shares issuable under employee incentive stock plans. Employee stock options outstanding
have been included in the calculation of fully diluted earnings per share by applying the "Treasury
Stock" Method quarterly. Such calculations have been made using the higher of the average month-end
market prices or the market prices at the end of the quarter, in order to reflect the maximum
potential dilution. On February 7, 1990, the board of directors authorized the redemption of the
Dutch Auction Rate Transferable Securities preference stock. The company redeemed Series D-1
preference stock on March 14, 1990, and Series D-2 preference stock on April 4, 1990.
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