COMPUTATION OF EARNINGS PER SHARE Exhibit 11 THE STANLEY WORKS AND SUBSIDIARIES (dollars and shares in thousands except per share amounts) Fiscal Year Ended December 31 January 1 January 2 1994 1994 1993 (52 Weeks) (52 Weeks) (53 Weeks) Earnings per common share: Weighted average shares outstanding 44,775 44,935 45,703 Earnings before cumulative effect of accounting change $125,296 $92,630 $98,118 Cumulative effect of accounting change for Postemployment Benefits (8,489) Net earnings $125,296 $84,141 $98,118 Per share amounts: Before cumulative effect of accounting change $ 2.80 $ 2.06 $ 2.15 Cumulative effect of accounting change for Postemployment Benefits (0.19) Net earnings $ 2.80 $ 1.87 $ 2.15 Primary: Weighted average shares outstanding 44,775 44,935 45,703 Dilutive common stock equivalents-- based on the treasury stock method using average market price 553 713 718 45,328 45,648 46,421 Per share amounts: Before cumulative effect of accounting change $ 2.76 $ 2.03 $ 2.11 Cumulative effect of accounting change for Postemployment Benefits (0.19) Net earnings $ 2.76 $ 1.84 $ 2.11 Fully Diluted: Weighted average shares outstanding 44,775 44,935 45,703 Dilutive common stock equivalents-- based on the treasury stock method using the quarter end market price if higher than average market price 557 757 779 45,332 45,692 46,482 Per share amounts: Before cumulative effect of accounting change $ 2.76 $ 2.03 $ 2.11 Cumulative effect of accounting change for Postemployment Benefits (0.19) Net earnings $ 2.76 $ 1.84 $ 2.11 Note: 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%.