1 MELVILLE CORPORATION AND SUBSIDIARY COMPANIES Exhibit 11 Computation of Earnings Per Share (Dollars and shares in thousands except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended Six Months Ended June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Primary (loss) earnings per common share: Net (loss) earnings $(62,534) $ 30,665 $(48,332) $(41,642) Less: preferred dividends, net (3,398) (4,328) (6,797) (8,656) - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) earnings used to compute primary (loss) earnings per share $(65,932) $ 26,337 $(55,129) $(50,298) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average number of shares outstanding 105,455 104,892 105,321 105,083 Add: weighted average number of shares which could have been issued upon exercise of outstanding stock options 242 46 31 26 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average number of shares used to compute primary (loss) earnings per share 105,697 104,938 105,352 105,109 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Primary (loss) earnings per share $ (.62) $ .25 $ (.52) $ (.48) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Fully diluted (loss) earnings per common share: Net (loss) earnings $(62,534) $ 30,665 $(48,332) $(41,642) Less: preferred dividends, net (341) (631) (683) (1,261) - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) earnings used to compute fully diluted (loss) earnings per share before adjustments (62,875) 30,034 (49,015) (42,903) Less: adjustments resulting principally from the assumed conversion of the Series One ESOP Convertible Preference stock, net of tax benefit (1,659) (262) (4,212) (1,221) - ------------------------------------------------------------------------------------------------------------------------------------ Net (loss) earnings used to compute fully diluted (loss) earnings per share $(64,534) $ 29,772 $(53,227) $(44,124) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average number of shares outstanding 105,455 104,892 105,321 105,083 Add: weighted average number of shares of Series One ESOP Convertible Preference Stock assuming conversion 7,032 7,208 7,032 7,208 Add: weighted average number of shares which could have been issued upon exercise of outstanding stock options 332 45 334 28 Add: weighted average number of shares which could have been issued upon conversion of 4 7/8% debentures -- 3 -- 3 - ------------------------------------------------------------------------------------------------------------------------------------ Weighted average number of shares used to compute fully diluted (loss) earnings per share 112,819 112,148 112,687 112,322 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Fully diluted (loss) earnings per share $ (.57) $ .27 $ (.47) $ (.39) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------