TOTAL RENAL CARE HOLDINGS, INC. EXHIBIT 11 COMPUTATION OF PER SHARE EARNINGS During the period from October 1, 1994 to November 2, 1995 the Company issued approximately 2,190,000 shares of Common Stock and options at prices significantly below the offering price of the Company's initial public offering. Such shares and common stock equivalents have been included in the number of shares outstanding from June 1, 1994 (including the quarter and six months ended June 30, 1995) until November 2, 1995 using the Treasury Stock method using the actual offering price of $15.50 per share. THREE MONTHS SIX MONTHS ENDED JUNE 30 ENDED JUNE 30 -------------------------- ------------------------- 1996 1995 1996 1995 ------------ ----------- ----------- ----------- Applicable Common Shares Average outstanding during the period 25,802,000 13,927,000 24,077,000 13,863,000 Outstanding stock options 841,000 1,656,000 825,000 1,605,000 Reduction in shares in connection with notes receivable from employees (64,000) (51,000) (65,000) (50,000) ----------- ----------- ----------- ---------- Weighted average number of shares outstanding 26,579,000 15,532,000 24,837,000 15,418,000 =========== =========== =========== =========== Net income $ 5,726,000 $ 1,898,000 10,002,000 2,899,000 =========== =========== =========== =========== Net earnings per share $ 0.22 $ 0.12 $ 0.40 $ 0.19 =========== =========== =========== ===========