Exhibit 11 MELVILLE CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF PER SHARE EARNINGS ($ and shares in thousands, except per share data) Twelve Months Twelve Months Twelve Months Ended Ended Ended December 31, December 31, December 31, 1994 1993 1992 ---- ---- ---- PRIMARY EARNINGS PER COMMON SHARE: Net earnings $ 307,470 $ 331,790 $ 133,429 Less: Preferred dividends, net 17,027 16,807 15,724 --------- --------- --------- Net earnings used to calculate primary earnings per share $ 290,443 $ 314,983 $ 117,705 ========= ========= ========= Weighted average number of shares outstanding 105,481 105,069 104,418 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options 47 281 510 --------- --------- --------- Weighted average number of shares used to compute primary earnings per share 105,528 105,350 104,928 ========= ========= ========= Primary earnings per share $ 2.75 $ 2.99 $ 1.12 ========= ========= ========= FULLY DILUTED EARNINGS PER COMMON SHARE: Net earnings $ 307,470 $ 331,790 $ 133,429 Less: Preferred dividends 53 53 54 --------- --------- --------- Net earnings used to calculate fully diluted earnings per share, before adjustments 307,417 331,737 133,375 Less: Adjustments resulting principally from the assumed conversion of the Series One ESOP Convertible Preference Stock, net of tax benefit 557 510 452 --------- --------- --------- Net earnings used to calculate fully diluted earnings per share $ 306,860 $ 331,227 $ 132,923 ========= ========= ========= Weighted average number of shares used to compute primary earnings per share 105,481 105,069 104,418 Add: Weighted average shares of Series One Convertible Preference Stock assuming conversion 7,339 6,830 6,602 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options 47 293 652 Add: Weighted average number of shares which could have been issued upon conversion of 4 7/8% debentures 3 6 6 --------- --------- --------- Weighted average number of shares used to compute fully diluted earnings per share 112,870 112,198 111,678 ========= ========= ========= Fully diluted earnings per share $ 2.72 $ 2.95 $ 1.19 ========= ========= =========