Page 16 EXHIBIT 11
ITT CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(In millions except per share)
Three Months
Ended March 31,
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1995 1994
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PRIMARY BASIS -
Net income $ 228 $ 202
ESOP preferred dividends - net of tax (8) (9)
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Net income applicable to primary
earnings per share $ 220 $ 193
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Average common shares outstanding 106 118
Common shares issuable in respect to common
stock equivalents 1 1
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Average common equivalent shares 107 119
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Earnings Per Share
Continuing operations $1.71 $1.39
Discontinued operations .34 .34
Cumulative effect of accounting changes - (.10)
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Net income $2.05 $1.63
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FULLY DILUTED BASIS -
Net income applicable to
primary earnings per share $ 220 $ 193
ESOP preferred dividends - net of tax 8 9
If converted ESOP expense adjustment-
net of tax benefit (4) (5)
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Net income applicable to fully diluted
earnings per share $ 224 $ 197
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Average common equivalent shares 107 119
Additional common shares issuable assuming
full dilution 10 9
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Average common equivalent shares assuming
full dilution 117 128
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Earnings Per Share
Continuing operations $1.59 $1.31
Discontinued operations .32 .32
Cumulative effect of accounting changes - (.09)
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Net income $1.91 $1.54
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The Series N convertible preferred stock is considered a
common stock equivalent in 1995 and 1994. 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 calculation impact of dilutive securities
is determined quarterly based on the forecast of annual
earnings.