Exhibit 11.01
The Travelers Inc. and Subsidiaries
Computation of Earnings Per Share
(In millions, except for per share amounts)
Year ended December 31,
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1993 1992 1991
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Earnings:
Net Income $916 $728 $479
Preferred dividends - series A (24) (10) -
Preferred dividends - series B (4) - -
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Income applicable to common stock 888 718 479
Interest expense related to 5 3/4% Convertible Subordinated
Notes (retired in 1991), net of applicable income taxes - - 2
Interest expense (through the date of conversion) related
to 4 1/2% Eurodollar Convertible Subordinated Debentures,
net of applicable income taxes - 1 4
Dilution due to assumed exercise of options of subsidiary - (2) (2)
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$888 $717 $483
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Average shares:
Common 229 215 212
Common stock warrants - - -
Assumed conversion of 5 3/4% Convertible
Subordinated Notes - - 2
Assumed conversion of 4 1/2% Eurodollar Convertible
Subordinated Debentures - 1 4
Assumed exercise of dilutive stock options 5 4 5
Incremental shares - Capital Accumulation Plan 4 3 4
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238 223 227
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Earnings Per Share $3.74 $3.22 $2.14
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Earnings per common share are based on the weighted average number of shares
outstanding during the period after consideration of the dilutive effect of
common stock warrants and stock options, the incremental shares assumed issued
under the Capital Accumulation Plan and the assumed conversion of the 4 1/2%
Eurodollar Convertible Subordinated Debentures (through the date of their
conversion) and the 5 3/4% Convertible Subordinated Notes. Fully diluted
earnings per common share, assuming conversion of all outstanding convertible
notes and debentures, the maximum dilutive effect of common stock equivalents
and the 5.5% convertible preferred stock, have not been presented because the
effects are not material. The fully diluted earnings per common share
computation for the years ended December 31, 1993, 1992 and 1991 would entail
adding the number of shares issuable on conversion of the other debentures
(2.0, 4.1 and 6.0 million shares, respectively), the additional common stock
equivalents (0.4, 1.1 and 3.8 million shares, respectively) and the assumed
conversion of the 5.5% convertible preferred stock (1.4 million shares in
1993), to the number of shares included in the earnings per common share
calculation (resulting in a total of 241.6, 228.0 and 236.3 million shares,
respectively) and eliminating the after-tax interest expense related to the
conversion of other debentures ($3.1, $7.0 and $8.3, respectively) and the
elimination of the 5.5% convertible preferred stock dividends ($2.9 in 1993).