1 EXHIBIT 11.2 CVS CORPORATION COMPUTATION OF NET EARNINGS PER SHARE THREE MONTHS ENDED ------------------------- MARCH 29, MARCH 30, 1997 1996 --------- --------- (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) PRIMARY EARNINGS (LOSS) PER SHARE: Net earnings (loss).............................................. $82.7 $46.0 Less: Preferred dividends, net................................... 3.5 3.3 ----- ----- Net earnings (loss) used to calculate primary earnings (loss) per share......................................................... $79.2 $42.7 ===== ===== Weighted average number of shares outstanding.................... 166.7 164.6 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options................... 2.6 .6 ----- ----- Weighted average number of shares used to compute primary earnings (loss) per share..................................... 169.3 165.2 ===== ===== Primary earnings (loss) per share................................ $ .47 $ .26 ===== ===== FULLY DILUTED EARNINGS (LOSS) PER SHARE: Net earnings (loss).............................................. $82.7 $46.0 Less: Preferred dividends, net................................... -- -- ----- ----- Net earnings (loss) used to calculate fully diluted earnings (loss) per share, before adjustments.......................... 82.7 46.0 Less: Adjustments resulting principally from the assumed conversion of the Series One ESOP Convertible Preference Stock, net of tax benefit..................................... 1.6 2.9 ----- ----- Net earnings (loss) used to calculate fully diluted earnings (loss) per share.............................................. $81.1 $43.1 ===== ===== Weighted average number of shares outstanding.................... 166.7 164.6 Add: Weighted average shares of Series One ESOP Convertible Preference Stock assuming conversion.......................... 5.8 7.8 Add: Weighted average number of shares which could have been issued upon exercise of outstanding options................... 2.8 1.3 ----- ----- Weighted average number of shares used to compute fully diluted earnings (loss) per share..................................... 175.3 173.7 ===== ===== Fully diluted earnings (loss) per share.......................... $ .46 $ .25 ===== =====