AVERY DENNISON CORPORATION COMPUTATION OF NET INCOME PER SHARE AMOUNTS Three Months Ended Six Months Ended ---------------------------- ---------------------------- July 1, 1995 July 2, 1994 July 1, 1995 July 2, 1994 ------------ ------------ ------------ ------------ (A) Weighted average number of common shares outstanding 53,220,848 56,019,780 53,336,086 56,101,564 Additional common shares issuable under employee stock options using the treasury stock method 1,033,351 488,179 1,058,056 515,643 ------------ ------------ ------------ ------------ (B) Weighted average number of common shares outstanding assuming the exercise of stock options 54,254,199 56,507,959 54,394,142 56,617,207 ============ ============ ============ ============ (C) Net income applicable to common stock $35,688,000 $27,932,000 $70,200,000 $53,091,000 ============ ============ ============ ============ Net income per share as reported (C / A) $ .67 $ .50 $1.32 $ .95 ======= ======= ======== ======== Net income per share giving effect to the exercise of outstanding stock options (C / B) $ .66 $ .49 $1.29 $ .94 ======= ======= ======== ======== Exhibit 11