EXHIBIT (11.3) THE MEAD CORPORATION AND CONSOLIDATED SUBSIDIARIES CALCULATION OF FULLY DILUTED NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE(1) (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 $701,386 $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 5,723 -------- -------- -------- NET EARNINGS APPLICABLE TO COMMON AND COMMON EQUIVALENT SHARES ON A FULLY DILUTED BASIS $349,972 $701,386 $129,889 ======== ======== ======== AVERAGE NUMBER OF SHARES OUTSTANDING ON A FULLY DILUTED BASIS Shares used in calculating primary earnings per share 55,293 62,555 59,593 Dilutive effect of stock options after application of treasury stock method 8 172 99 Adjustment for other potentially dilutive securities - Dilutive effect of Convertible Subordinated Debentures as if converted at the beginning of the period 2,630 ======== ======== -------- AVERAGE NUMBER OF SHARES OUTSTANDING ON A FULLY DILUTED BASIS 55,301 62,727 62,322 ======== ======== ======== FULLY DILUTED NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE $6.33 $11.18 $2.08 ======== ======== ======== (1) This calculation is submitted in accordance with 17 CFR 229.601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an antidilutive result. 72