Exhibit 11
KMART CORPORATION AND SUBSIDIARY COMPANIES
INFORMATION ON COMPUTATION OF PER SHARE EARNINGS
($ Millions) Fiscal Year Ended
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January 31, January 25, January 26, January 27, January 29,
1996 1995* 1994* 1993* 1992*
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I. Earnings per common and common equivalent share:
Income (loss) from continuing retail operations before
extraordinary item and the effect of accounting changes $ (490) $ 104 $ (260) $ 867 $ 752
Less: Series B and C convertible preferred shares dividend
payment (6) (9) (9) (3) -
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(a) Adjusted income (loss) from continuing retail operations
before extraordinary item and the effect of accounting
changes (496) 95 (269) 864 752
(b) Discontinued operations including the effect of accounting
changes, net of income taxes - 75 (169) 74 107
(c) Gain (loss) on disposal of discontinued operations,
net of income taxes (30) 117 (521) - -
(d) Extraordinary item, net of income taxes (51) - (10) - -
(e) Effect of accounting changes, net of income taxes - - (14) - -
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(f) Adjusted net income (loss) (1) (577) 287 (983) 938 859
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Weighted average common shares outstanding 459.8 427.2 408.1 405.7 401.5
Weighted average $3.41 Depositary Shares outstanding
(each representing 1/4 share Series A conversion preferred) - 29.2 46.0 46.0 20.1
Stock Options:
Common shares assumed issued 1.6 2.2 16.1 17.2 15.5
Less: common shares assumed repurchased (1.5) (2.0) (13.5) (13.3) (12.7)
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0.1 0.2 2.6 3.9 2.8
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(g) Applicable common shares, as adjusted (2) 459.9 456.6 456.7 455.6 424.4
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Earnings per common and common equivalent share:
Adjusted income (loss) from continuing retail operations
before extraordinary item and the effect of accounting
changes (a)/(g) $ (1.08) $ 0.21 $ (0.59) $ 1.90 $ 1.77
Discontinued operations including the effect of accounting
changes, net of income taxes (b)/(g) - 0.16 (0.37) 0.16 0.25
Gain (loss) on disposal of discontinued operations,
net of income taxes (c)/(g) (0.06) 0.26 (1.14) - -
Extraordinary item, net of income taxes (d)/(g) (0.11) - (0.02) - -
Effect of accounting changes, net of income taxes (e)/(g) - - (0.03) - -
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Net income (loss) (f)/(g) $ (1.25) $ 0.63 $ (2.15) $ 2.06 $ 2.02
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* Prior year amounts have been restated for the effect of discontinued
operations.
(1) Adjusted net income (loss) includes an after-tax provision of $390
million or $0.85 per share for fiscal 1995 related to the adoption of
Financial Accounting Standard No. 121 "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" and an
after-tax provision of $723 million or $1.58 per share for fiscal 1993 for
store restructuring and other charges.
(2) Shares were restated for fiscal year 1991 to give effect to the 2 for 1
common stock split that occurred in fiscal 1991.
1
Exhibit 11
KMART CORPORATION AND SUBSIDIARY COMPANIES
INFORMATION ON COMPUTATION OF PER SHARE EARNINGS
($ Millions) Fiscal Year Ended
------------------------------------------------------------
January 31, January 25, January 26, January 27, January 29,
1996 1995* 1994* 1993* 1992*
-----------------------------------------------------------
II. Earnings per common and common equivalent share
assuming full dilution:
(h) Income (loss) from continuing retail operations before
extraordinary item and the effect of accounting changes $ (490) $ 104 $ (260) $ 867 $ 752
(i) Discontinued operations including the effect of accounting
changes, net of income taxes - 75 (169) 74 107
(j) Gain (loss) on disposal of discontinued operations,
net of income taxes (30) 117 (521) - -
(k) Extraordinary item, net of income taxes (51) - (10) - -
(l) Effect of accounting changes, net of income taxes - - (14) - -
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(m) Adjusted net income (loss) (1) (571) 296 (974) 941 859
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Weighted average common shares outstanding 459.8 427.2 408.1 405.7 401.5
Weighted average $3.41 Depositary Shares outstanding
(each representing 1/4 share Series A conversion preferred) - 29.2 46.0 46.0 20.1
Weighted average Series B and C convertible preferred shares
outstanding - 9.7 8.0 1.7 -
Stock Options:
Common shares assumed issued 1.6 2.2 16.6 18.1 19.2
Less: common shares assumed repurchased (1.4) (2.0) (14.5) (13.7) (14.6)
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0.2 0.2 2.1 4.4 4.6
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(n) Applicable common shares, as adjusted (2) 460.0 466.3 464.2 457.8 426.2
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Earnings per common and common equivalent share:
Adjusted income (loss) from continuing retail operations before
extraordinary item and the effect of accounting changes (h)/(n) $ (1.07) $ 0.22 $(0.56) $ 1.89 $ 1.76
Discontinued operations including the effect of accounting
changes, net of income taxes (i)/(n) - 0.16 (0.37) 0.16 0.25
Gain (loss) on disposal of discontinued operations,
net of income taxes (j)/(n) (0.06) 0.25 (1.12) - -
Extraordinary item, net of income taxes (k)/(n) (0.11) - (0.02) - -
Effect of accounting changes, net of income taxes (l)/(n) - - (0.03) - -
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Net income (loss) (m)/(n) $ (1.24) $ 0.63 $(2.10) $ 2.05 $ 2.01
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(3) (3) (3) (4) (4)
* Prior year amounts have been restated for the effect of discontinued
operations.
(1) Adjusted net income (loss) includes an after tax provision of $390 million
or $0.85 per share for fiscal 1995 related to the adoption of Financial
Accounting Standard No. 121 "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of" and an after tax provision of $723
million or $1.58 per share for fiscal 1993 for store restructuring and other
charges.
(2) Shares were restated for fiscal year 1991 to give effect to the 2 for 1
common stock split that occurred in fiscal 1991.
(3) This calculation is submitted in accordance with Regulation S-K Item
601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15 because
it produces an anti-dilutive result.
(4) This calculation is submitted in accordance with Regulation S-K Item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion
No. 15 because it results in dilution of less than 3%.
2