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Page 16 EXHIBIT 11
ITT CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(In millions except per share)
Nine Months
Ended September 30,
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1994 1993
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PRIMARY BASIS -
Net income $ 734 $ 694
ESOP preferred dividends - net of tax (26) (26)
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Net income applicable to primary earnings per share $ 708 $ 668
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Average common shares outstanding 116 119
Common shares issuable in respect to common stock equivalents 1 1
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Average common equivalent shares 117 120
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Earnings Per Share
Continuing operations $ 4.98 $ 3.81
Discontinued operations 1.00 2.15
Extraordinary item - (.41)
Cumulative effect of accounting changes .04 -
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Net income $ 6.02 $ 5.55
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FULLY DILUTED BASIS -
Net income applicable to primary earnings per share $ 708 $ 668
ESOP preferred dividends - net of tax 26 26
If converted ESOP expense adjustment - net of tax benefit (16) (16)
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Net income applicable to fully diluted earnings per share $ 718 $ 678
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Average common equivalent shares 117 120
Additional common shares issuable assuming full dilution 10 10
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Additional common equivalent shares assuming full dilution 127 130
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Earnings Per Share
Continuing operations $ 4.68 $ 3.62
Discontinued operations .93 1.99
Extraordinary item - (.38)
Cumulative effect of accounting changes .04 -
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Net income $ 5.65 $ 5.23
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The Series N convertible preferred stock is considered a common stock
equivalent in 1994 and 1993. With respect to options, it is assumed that the
proceeds to be received upon exercise are used to acquire common stock of the
Corporation. The calculation impact of dilutive securities is determined
quarterly based on the forecast of annual earnings.