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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1994 1993 1992
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Earnings:
Net Income $1,326 $916 $728
Preferred dividends - series A (24) (24) (10)
Preferred dividends - series B (7) (4) -
Preferred dividends - series C (17) - -
Preferred dividends - series D (35) - -
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Income applicable to common stock 1,243 888 718
Interest expense (through the date of conversion) related
to 4 1/2% Eurodollar Convertible Subordinated Debentures,
net of applicable income taxes - - 1
Dilution due to assumed exercise of options of subsidiary - - (2)
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$1,243 $ 888 $ 717
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Average shares:
Common 315 229 215
Assumed conversion of 4 1/2% Eurodollar Convertible
Subordinated Debentures - - 1
Assumed exercise of dilutive stock options 3 5 4
Incremental shares - Capital Accumulation Plan 4 4 3
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322 238 223
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Earnings Per Share $ 3.86 $3.74 $3.22
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Earnings per common share is computed after recognition of preferred stock
dividend requirements and is 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 and the incremental shares assumed
issued under the Capital Accumulation Plan and other restricted stock plans.
Fully diluted earnings per common share, assuming conversion of all outstanding
convertible notes and debentures, the maximum dilutive effect of common stock
equivalents and conversion of the 5.5% convertible preferred stock, has not been
presented because the effects are not material. The fully diluted earnings per
common share computation for the years ended December 31, 1994, 1993 and 1992
would entail adding the number of shares issuable on conversion of the other
debentures (zero and 2 million and 4 million shares, respectively), the
additional common stock equivalents (2 million, zero and 1 million shares
respectively) and the assumed conversion of the 5.5% convertible preferred
stock (3 million, 2 million, and zero shares, respectively) to the number of
shares included in the earnings per common share calculation (resulting in a
total of 327 million, and 242 million and 228 million shares, respectively)
and eliminating the after-tax interest expense related to the conversion of
other debentures (zero, $3 million and $7 million, respectively) and the
elimination of the 5.5% convertible preferred stock dividends ($7 million,
$3 million, and zero, respectively).