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EXHIBIT 11
ITT CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(In millions except per share data)
Three Months
Ended March 31,
---------------------
1994 1993
------- --------
PRIMARY BASIS -
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 219 $ 175
ESOP preferred dividends - net of tax. . . . . . . . . . . . . . . . (9) (9)
----- ------
Net income applicable to primary earnings per share. . . . . . . . . $ 210 $ 166
----- ------
Average common shares outstanding. . . . . . . . . . . . . . . . . . 118 119
Common shares issuable in respect to common stock equivalents. . . . 1 2
----- ------
Average common equivalent shares . . . . . . . . . . . . . . . . . . 119 121
----- ------
Earnings Per Share
Continuing operations. . . . . . . . . . . . . . . . . . . . . . . . $ 1.63 $ 1.23
Discontinued operations. . . . . . . . . . . . . . . . . . . . . . . .10 .14
Cumulative effect of accounting changes. . . . . . . . . . . . . . . .04 -
----- ------
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.77 $ 1.37
----- ------
FULLY DILUTED BASIS -
Net income applicable to primary earnings per share. . . . . . . . . $ 210 $ 166
ESOP preferred dividends - net of tax. . . . . . . . . . . . . . . . 9 9
If converted ESOP expense adjustment - net of tax benefit. . . . . . (5) (6)
----- -----
Net income applicable to fully diluted
earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $ 214 $ 169
----- ------
Average common equivalent shares . . . . . . . . . . . . . . . . . . 119 121
Additional common shares issuable assuming full dilution . . . . . . 9 9
----- ------
Average common equivalent shares assuming full dilution. . . . . . . 128 130
----- ------
Earnings Per Share
Continuing operations. . . . . . . . . . . . . . . . . . . . . . . . $ 1.54 $ 1.17
Discontinued operations. . . . . . . . . . . . . . . . . . . . . . . .09 .13
Cumulative effect of accounting changes. . . . . . . . . . . . . . . .04 -
----- ------
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.67 $ 1.30
----- ------
The Series N convertible preferred stock is considered a common stock
equivalent in 1994 and 1993.
With respect to options, it is assumed that the proceeds to be received
upon exercise are used to acquire common stock of the Corporation.
The dilutive nature of securities is determined quarterly based on the
forecast of annual earnings.