1 Exhibit 11 2 LEHMAN BROTHERS HOLDINGS INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS (UNAUDITED) (IN MILLIONS, EXCEPT SHARE DATA) Three months Three months Eight months Nine months ended ended ended ended August 31, September 30, August 31, September 30, 1994 1993 1994 1993 -------------- ---------------- --------------- --------------- PRIMARY: Weighted average shares outstanding: Common stock 105,555,348 105,608,423 105,588,233 105,608,423 Common stock equivalents: Restricted stock units 3,559,208 73,056 1,392,916 73,056 ----------- ----------- ----------- ----------- Total common stock and common stock equivalents 109,114,556 105,681,479 106,981,149 105,681,479 =========== =========== =========== =========== Income (loss) from continuing operations before before cumulative effect of change in accounting principle $22.0 $113.8 $79.7 $(405.4) Net income from discontinued operations 189.4 Cumulative effect of change in accounting principle (12.7) ----------- ----------- ----------- ----------- Net income (loss) 22.0 113.8 67.0 (216.0) Preferred dividends (11.0) (12.0) (27.0) (36.0) ----------- ----------- ----------- ----------- Net income (loss) applicable to common stock $11.0 $101.8 $40.0 $(252.0) =========== =========== =========== =========== EARNINGS PER SHARE: Income (loss) from continuing operations before cumulative effect of change in accounting principle $.10 $.96 $.49 $(4.17) Discontinued operations 1.79 Cumulative effect of change in accounting principle (.12) ----------- ----------- ----------- ----------- Earnings per common share $.10 $.96 $.37 $(2.38) =========== =========== =========== =========== FULLY DILUTED: Weighted average shares outstanding: Common stock 105,555,348 105,608,423 105,588,233 105,608,423 Common stock equivalents: Restricted stock units 3,559,208 73,056 1,392,916 73,056 ----------- ----------- ----------- ----------- Total common stock and common stock equivalents 109,114,556 105,681,479 106,981,149 105,681,479 =========== =========== =========== =========== Income (loss) from continuing operations before before cumulative effect of change in accounting principle $22.0 $113.8 $79.7 $(405.4) Net income from discontinued operations 189.4 Cumulative effect of change in accounting principle (12.7) ----------- ----------- ----------- ----------- Net income (loss) 22.0 113.8 67.0 (216.0) Preferred dividends (11.0) (12.0) (27.0) (36.0) ----------- ----------- ----------- ----------- Net income (loss) applicable to common stock $11.0 $101.8 $40.0 $(252.0) =========== =========== =========== =========== EARNINGS PER SHARE: Income (loss) from continuing operations before cumulative effect of change in accounting principle $.10 $.96 $.49 $(4.17) Discontinued operations 1.79 Cumulative effect of change in accounting principle (.12) ----------- ----------- ----------- ----------- Earnings per common share $.10 $.96 $.37 $(2.38) =========== =========== =========== ===========