Exhibit 11 MELVILLE CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF EARNINGS PER SHARE ($ and shares in thousands, except per share data) Three Months Ended Three Months Ended April 1, 1995 April 2, 1994 ----------------- ----------------- - ------------------------------------------------ PRIMARY LOSS PER COMMON SHARE: - ------------------------------------------------ Net loss ($ 26,448) ($ 2,505) Less: Preferred dividends, net 4,367 4,237 ----------------- ----------------- Net loss used to calculate primary loss per share ($ 30,815) ($ 6,742) ================= ================= Weighted average number of shares outstanding 105,209 105,351 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options 15 91 ----------------- ----------------- Weighted average number of shares used to compute primary loss per share 105,224 105,442 ================= ================= Primary loss per share ($ 0.29) ($ 0.06) ================= ================= - ------------------------------------------------ FULLY DILUTED LOSS PER COMMON SHARE: - ------------------------------------------------ Net loss ($ 26,448) ($ 2,505) Less: Preferred dividends 13 13 ----------------- ----------------- Net loss used to calculate fully diluted loss per share, before adjustments (26,461) (2,518) Less: Adjustments resulting principally from the assumed conversion of the Series One ESOP Convertible Preference Stock, net of tax benefit 1,670 1,657 ----------------- ----------------- Net loss used to calculate fully diluted loss per share ($ 28,131) ($ 4,175) ================= ================= Weighted average number of shares outstanding 105,209 105,351 Add: Weighted average shares of Series One Convertible Preference Stock assuming conversion 7,065 7,074 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options 31 91 Add: Weighted average number of shares which could have been issued upon conversion of 4 7/8% debentures 3 6 ----------------- ----------------- Weighted average number of shares used to compute fully diluted loss per share 112,308 112,522 ================= ================= Fully diluted loss per share ($ 0.25) ($ 0.04) ================= =================