THE PEP BOYS - MANNY, MOE & JACK AND SUBSIDIARIES Exhibit 11 - Computation of Earnings per Share (in thousands, except per share data) - ----------------------------------------------------------------------------------------------------------- Fiscal Year 1996 1995 1994 1993 1992 - ----------------------------------------------------------------------------------------------------------- Earnings before cumulative effect of change in accounting principle............................ $100,824 $81,494 $80,008 $65,512 $54,579 Adjustment for interest on $86,250, 4% convertible subordinated notes, net of income tax effect......................................... 2,168 2,200 897 - - Adjustments for interest on $271,704, 4% zero coupon convertible subordinated notes, net of income tax effect.................................. 1,409 - ------------------------------------------------------------------------------------------------------------ (a) Adjusted earnings before the cumulative effect of change in accounting principle..................... 104,401 83,694 80,905 65,512 54,579 - ------------------------------------------------------------------------------------------------------------ (b) Cumulative effect of change in accounting principle. - - (4,300) - - - ----------------------------------------------------------------------------------------------------------- (c) Adjusted net earnings $104,401 $ 83,694 $76,605 $65,512 $54,579 - ------------------------------------------------------------------------------------------------------------ Average number of common shares outstanding during the year.................................... 60,305 59,581 59,252 60,805 59,297 Common shares assumed issued upon conversion of 4% convertible subordinated notes.................. 2,104 2,104 873 - - Common shares assumed issued upon conversion of 4% zero coupon convertible subordinated notes...... 1,303 - - - - Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price, using the treasury stock method (1)................ 893 903 1,313 1,086 1,339 - ----------------------------------------------------------------------------------------------------------- (d) Average number of common shares outstanding during the year.................................... 64,605 62,588 61,438 61,891 60,636 - ------------------------------------------------------------------------------------------------------------ (e) Earnings per share before cumulative effect of change in accounting principle (a/d)............... $1.62 $ 1.34 $ 1.32 $ 1.06 $ .90 - ------------------------------------------------------------------------------------------------------------ (f) Cumulative effect of change in accounting principle (b/d).................................... - - (.07) - - - ------------------------------------------------------------------------------------------------------------ (g)Net earnings per share (c/d)........................ $1.62 $ 1.34 $ 1.25 $ 1.06 $ .90 - ------------------------------------------------------------------------------------------------------------ <FN> (1) The number of shares assumed issued upon exercise of dilutive stock options is essentially the same for fully diluted earnings per share.