EXHIBIT 11(ii)
Page 1 of 2
INGERSOLL-RAND COMPANY
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(In millions of dollars except for shares and per share amounts)
Years ended December 31,
1995 1994 1993 1992 1991
FULLY DILUTED EARNINGS PER SHARE:
Earnings applicable to common
stock before effect of
accounting changes........... $270.3 $211.1 $163.5 $ 115.6 $150.6
Effect of accounting changes:
- Postemployment benefits -- -- (21.0) -- --
- Postretirement benefits
other than pensions........ -- -- -- (332.0) --
- Income taxes............... -- -- -- (18.0) --
Net earnings (loss) applicable
to common stock.............. $270.3 $211.1 $142.5 $(234.4) $150.6
Average number of common
shares outstanding........... 106,069,078 105,458,116 104,991,535 104,340,622 103,634,178
Number of common shares
issuable assuming exercise
under incentive stock plans.. 498,456 496,893 600,429 738,149 632,056
Average number of outstanding
shares as adjusted for
fully diluted earnings per
share calculations........... 106,567,534 105,955,009 105,591,964 105,078,771 104,266,234
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EXHIBIT 11(ii)
Page 2 of 2
INGERSOLL-RAND COMPANY
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(In millions of dollars except for shares and per share amounts)
(Continued)
Years ended December 31,
1995 1994 1993 1992 1991
Fully diluted earnings per share:
Earnings before effect of
accounting change............ $2.54 $1.99 $ 1.55 $ 1.10 $1.44
Effect of accounting changes:
- Postemployment benefits -- -- (0.20) -- --
- Postretirement benefits
other than pensions...... -- -- -- (3.16) --
- Income taxes............. -- -- -- (0.17) --
Fully diluted earnings (loss) per
share........................ $2.54 $1.99 $ 1.35 $(2.23) $1.44
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.
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