EXHIBIT 11
MELVILLE CORPORATION AND SUBSIDIARY COMPANIES
COMPUTATION OF EARNINGS PER SHARE (1)
($ and shares in thousands, except per share data)
Twelve Months Ended Twelve Months Ended Twelve Months Ended
December 31, December 31, December 31,
1993 1992 1991
---- ---- ----
PRIMARY EARNINGS PER COMMON SHARE
Net earnings $331,790 $133,429 $346,681
Less: Preferred dividends, net 16,807 15,724 15,836
-------- -------- --------
Net earnings used to calculate
primary earnings per share $314,983 $117,705 $330,845
======== ======== ========
Weighted average number of shares
outstanding 105,069 104,418 103,376
Add: Weighted average number of
shares which could have been issued
upon exercise of outstanding options 281 510 456
-------- -------- --------
Weighted average number of shares used
to compute primary earnings per share 105,350 104,928 103,832
======== ======== ========
Primary earnings per share $2.99 $1.12 $3.19
======== ======== ========
FULLY DILUTED EARNINGS PER COMMON SHARE:
Net earnings $331,790 $133,429 $346,681
Less: Preferred dividends 53 54 58
-------- -------- --------
Net earnings used to calculate fully
diluted earnings per share, before
adjustments 331,737 133,375 346,623
Less: Adjustments resulting principally
from the assumed conversion of the
Series One ESOP Convertible Preference
Stock, net of tax benefit 510 452 1,397
-------- -------- --------
Net earnings used to calculate fully
diluted earnings per share $331,227 $132,923 $345,226
======== ======== ========
Weighted average number of shares used
to compute primary earnings per share 105,069 104,418 103,376
Add: Weighted average shares of Series
One Convertible Preference Stock
assuming conversion 6,830 6,602 6,779
Add: Weighted average number of shares
which could have been issued upon
exercise of outstanding options 293 652 501
Add: Weighted average number of shares
which could have been issued upon
conversion of 4 7/8% debentures 6 6 8
-------- -------- --------
Weighted average number of shares used
to compute fully diluted earnings per
share 112,198 111,678 110,664
======== ======== ========
Fully diluted earnings per share $2.95 $1.19 $3.12
======== ======== ========
(1) The earnings per share calculation presented above differs from that
disclosed on the income statement as the above calculation includes shares
which could be issued upon conversion of outstanding stock options. As these
shares represent less than 3% dilution, they have been excluded from the
primary earnings per share presented on the income statement in accordance
with APB No. 15.