EXHIBIT (11.1) THE MEAD CORPORATION AND CONSOLIDATED SUBSIDIARIES CALCULATION OF PRIMARY NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE (All amounts in thousands, except per share amounts) Year Ended December 31 ---------------------------- 1995 1994 1993 -------- -------- -------- NET EARNINGS APPLICABLE TO COMMON AND COMMON EQUIVALENT SHARES: $349,972 $695,725 $124,166 ADJUSTMENT FOR OTHER POTENTIALLY DILUTIVE SECURITIES - Interest Savings (net of tax) on Convertible Subordinated Debentures as if converted at the beginning of the period 5,661 -------- -------- -------- $349,972 $701,386 $124,166 ======== ======== ======== AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING: Average number of common shares outstanding 54,380 59,333 59,021 Dilutive effect of stock options after application of treasury stock method 913 621 572 Adjustment of other potentially dilutive securities - Dilutive effect of Convertible Subordinated Debentures as if converted at the beginning of the year 2,601 -------- ------- -------- AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 55,293 62,555 59,593 ======== ======== ======== PRIMARY NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $6.33 $11.21 $2.08 ======== ======== ======== 70