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EXHIBIT 11
Service Merchandise Company, Inc. and Subsidiaries
COMPUTATION OF EARNINGS PER COMMON SHARE (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
January 1 January 1 January 2
1995 1994 1993
--------- --------- ---------
PRIMARY
- -------
Earnings before extraordinary loss and cumulative
effect of change in accounting principle $ 61,570 $ 82,315 $ 84,495
Extraordinary loss from early extinguishment of debt,
net of tax benefit of $3,462 and $4,982, respectively (5,415) (7,474) -
Cumulative effect of change in accounting principle - 7,742 -
-------- -------- --------
Net earnings $ 56,155 $ 82,583 $ 84,495
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Shares:
- ------
Weighted average common shares outstanding 98,549 98,294 97,483
Weighted average shares of restricted
stock outstanding 883 948 1,128
Additional shares assuming exercise of stock options 1,941 2,836 2,991
-------- -------- --------
Weighted average common shares and common
share equivalents outstanding - primary 101,373 102,078 101,602
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Earnings per commmon share before extraordinary loss
and cumulative effect of change in accounting principle $ 0.61 $ 0.80 $ 0.83
Extraordinary loss per common share from early extinguishment
of debt, net of tax benefit (0.06) (0.07) -
Cumulative effect per common share of change in accounting
principle - 0.08 -
-------- -------- --------
Primary net earnings per common share $ 0.55 $ 0.81 $ 0.83
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ASSUMING FULL DILUTION
- ----------------------
Earnings before extraordinary loss and cumulative
effect of change in accounting principle $ 61,570 $ 82,315 $ 84,495
Extraordinary loss before from early extinguishment of debt,
net of tax benefit of $3,462 and $4,982, respectively (5,415) (7,474) -
Cumulative effect before of change in accounting principle - 7,742 -
-------- -------- --------
Net earnings $ 56,155 $ 82,583 $ 84,495
======== ======== ========
Shares:
- ------
Weighted average common shares outstanding 98,549 98,294 97,483
Weighted average shares of restricted
stock outstanding 883 948 1,128
Additional shares assuming exercise of stock options 1,954 2,858 3,066
-------- -------- --------
Weighted average common shares and common
share equivalents outstanding - fully diluted 101,386 102,100 101,677
======== ======== ========
Earnings per common share before extraordinary loss
and cumulative effect of change in accounting principle $ 0.61 $ 0.80 $ 0.83
Extraordinary loss per common share from early extinguishment
of debt, net of tax benefit (0.06) (0.07) -
Cumulative effect per common share of change in
accounting principle - 0.08 -
-------- -------- --------
Fully diluted net earnings per common share $ 0.55 $ 0.81 $ 0.83
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