Exhibit 11 FURNITURE BRANDS INTERNATIONAL, INC. STATEMENT RE COMPUTATION OF NET EARNINGS PER COMMON SHARE Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Primary: Weighted average common shares outstanding during the period......................... 61,033,994 60,276,200 61,239,722 56,901,460 Common shares issuable on exercise of stock options (1)............................... 1,429,690 985,273 1,384,191 906,411 Common shares issuable on exercise of warrants (2)............................. 918,434 2,442,451 910,953 2,150,291 Weighted average common and common equivalent shares outstanding for primary calculation.. 63,382,118 63,703,924 63,534,866 59,958,162 ============ ============ ============ ============ Fully diluted: Weighted average common and common equivalent shares outstanding for primary calculation.. 63,382,118 63,703,924 63,534,866 59,958,162 Common shares issuable on exercise of stock options(3).................................. 192,112 60,910 237,611 139,772 Common shares issuable on exercise of warrants (4)............................... 122,783 254,326 155,551 596,011 Weighted average common and common equivalent shares outstanding for fully diluted calculation................................. 63,697,013 64,019,160 63,928,028 60,693,945 ============ ============ ============ ============ 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.