AVERY DENNISON CORPORATION COMPUTATION OF NET INCOME PER SHARE AMOUNTS Three Months Ended Nine Months Ended --------------------------------- -------------------------------- September 27, September 28, September 27, September 28, 1997 1996 1997 1996 ------------- ------------- ------------- ------------- (A) Weighted average number of common shares outstanding 103.1 104.7 103.3 105.3 Additional common shares issuable under employee stock options using the treasury stock method 3.0 2.5 3.0 2.9 ------ ------ ------ ------ (B) Weighted average number of common shares outstanding assuming the exercise of stock options 106.1 107.2 106.3 108.2 ====== ====== ====== ====== (C) Net income applicable to common stock $ 52.6 $ 46.6 $150.4 $128.2 ====== ====== ====== ====== Net income per share as reported (C divided by A) $ 0.51 $ 0.45 $ 1.46 $ 1.22 ====== ====== ====== ====== Net income per share giving effect to the exercise of outstanding stock options (C divided by B) $ 0.50 $ 0.43 $ 1.41 $ 1.18 ====== ====== ====== ====== Exhibit 11