ARTHUR J. GALLAGHER & CO.
COMPUTATION OF NET EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
(UNAUDITED)
Three-month period ended Six-month period ended
June 30, June 30,
1997 1996 1997 1996
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(In thousands, except per share data)
Net earnings $12,792 $ 7,001 $22,030 $15,535
Adjustments to net earnings for computation related
to the 20% limitation on the buyback of common
shares using the treasury stock method 288 169 614 312
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Net earnings applicable to computation $13,080 $ 7,170 $22,644 $15,847
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Average common shares outstanding 16,358 16,484 16,421 16,531
Dilutive effect of stock options using the
treasury stock method 1,501 1,230 1,559 1,320
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Weighted average number of common and
common equivalent shares outstanding 17,859 17,714 17,980 17,851
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Net earnings per common and common
equivalent share $.73 $.40 $1.26 $.89