EXHIBIT 11 FURNITURE BRANDS INTERNATIONAL, INC. STATEMENT RE COMPUTATION OF NET EARNINGS PER COMMON SHARE ---------------------------------------------------------- Three Months Nine Months Three and Nine Ended Ended Months Ended September 30, September 30, September 30, Primary: 1996 1996 1995 ------------ ------------- Weighted average common shares outstanding during the period................................................ 61,405,437 58,413,744 50,112,020 Common shares issuable on exercise of stock options (1). 1,161,741 992,174 485,603 Common shares issuable on exercise of warrants.......... 1,526,016 1,821,221 - ------------ ------------- Weighted average common and common equivalent shares outstanding for primary calculation.................... 64,093,194 61,227,139 50,597,623 ============ ============= Fully diluted: Weighted average common and common equivalent shares outstanding for primary calculation.................... 64,093,194 61,227,139 50,597,623 Common shares issuable on exercise of stock options (3). 228,349 397,916 152,764 Common shares issuable on exercise of warrants (4)...... 432,658 1,139,749 653,468 ------------ ------------- Weighted average common and common equivalent shares outstanding for fully diluted calculation.............. 64,754,201 62,764,804 51,403,855 ============ ============= EXHIBIT 11 (CONTINUED) FURNITURE BRANDS INTERNATIONAL, INC. NOTES TO STATEMENT RE COMPUTATION OF NET EARNINGS PER COMMON SHARE (1) Includes common stock options, the exercise of which would result in dilution of net earnings per common share. Such common stock options have been considered as exercised and the proceeds therefrom were used to purchase common stock at the average common stock market price, if the average common stock market price was higher than the common stock option exercise price during the period. (2) Includes common stock warrants, the exercise of which would result in dilution of net earnings per common share. Such common stock warrants have been considered as exercised and the proceeds therefrom were used to purchase common stock at the average common stock market price, if the average common stock market price was higher than the common stock warrant exercise price during the period. (3) Additional common shares issuable resulting from the application of the same principles described in Note (1), except that the proceeds from assumed common stock options exercised were used to purchase common stock at the month end common stock market price, if the month end common stock market price was higher than the average common stock market price during the period. (4) Additional common shares issuable resulting from the application of the same principles described in Note (2), except that the proceeds from assumed common stock warrants exercised were used to purchase common stock at the month end common stock market price, if the month end common stock market price was higher than the average common stock market price during the period.