AVERY DENNISON CORPORATION COMPUTATION OF NET INCOME PER SHARE AMOUNTS (In millions, except per share amounts) Three Months Ended Six Months Ended ----------------------------- ----------------------------- June 28, 1997 June 29, 1996 June 28, 1997 June 29, 1996 ------------- ------------- ------------- ------------- (A) Weighted average number of common shares outstanding 103.3 105.4 103.4 105.6 Additional common shares issuable under employee stock options using the treasury stock method 3.0 2.7 3.1 2.7 ------------- ------------- ------------- ------------- (B) Weighted average number of common shares outstanding assuming the exercise of stock options 106.3 108.1 106.5 108.3 ============= ============= ============= ============= (C) Net income applicable to common stock $ 49.6 $ 41.6 $ 97.8 $ 81.6 ============= ============= ============= ============= Net income per share as reported (C / A) $ 0.48 $ 0.39 $ 0.95 $ 0.77 ============= ============= ============= ============= Net income per share giving effect to the exercise of outstanding stock options (C / B) $ 0.47 $ 0.38 $ 0.92 $ 0.75 ============= ============= ============= ============= Exhibit 11