1 Exhibit 11 TRW COMPUTATION OF EARNINGS PER SHARE-UNAUDITED (In Millions Except Per Share Amounts) Nine Months Ended September 30 ------------------------------ PRIMARY (A) 1996 1995 - ----------- --------- --------- Earnings from continuing operations $ 72.4 $ 290.0 Less preference dividend requirements 0.5 0.5 --------- --------- Earnings applicable to common shares and common share equivalents 71.9 289.5 Earnings from discontinued operations 37.9 41.4 Gain on disposal of discontinued operations 242.4 n/a --------- --------- Net earnings applicable to common shares and common share equivalents $ 352.2 $ 330.9 ========= ========= Average common shares outstanding 129.6 130.4 Stock options and performance share rights, based on the treasury stock method using average market price 2.9 2.7 --------- --------- Average common shares and common share equivalents 132.5 133.1 ========= ========= Primary earnings per share from continuing operations $ 0.54 $ 2.17 Primary earnings per share from discontinued operations 0.29 0.32 Primary earnings per share from gain on disposal of discontinued operations 1.83 n/a --------- --------- Primary earnings per share $ 2.66 $ 2.49 ========= ========= FULLY DILUTED (B) - ----------------- Earnings from continuing operations applicable to common shares and common share equivalents $ 71.9 $ 289.5 Dividends assuming conversion of other dilutive securities: (B) Dilutive preference dividends 0.5 0.5 --------- --------- Earnings from continuing operations applicable to fully diluted shares 72.4 290.0 Earnings from discontinued operations 37.9 41.4 Gain on disposal of discontinued operations 242.4 n/a --------- --------- Net earnings applicable to fully diluted shares $ 352.7 $ 331.4 ========= ========= Average common shares outstanding 129.6 130.4 Common shares assuming conversion of other dilutive securities: (B) Dilutive preference shares 1.1 1.2 Stock options and performance share rights, based on the treasury stock method using closing market price if higher than average market price 3.2 2.7 --------- --------- Average fully diluted shares 133.9 134.3 ========= ========= Fully diluted earnings per share from continuing operations $ 0.54 $ 2.16 Fully diluted earnings per share from discontinued operations 0.28 0.31 Fully diluted earnings per share from gain on disposal of discontinued operations 1.81 n/a --------- --------- Fully diluted earnings per share $ 2.63 $ 2.47 ========= ========= <FN> (A) In accordance with APB#15, the shares and per share amounts reflect a two-for-one stock split (in the form of a 100% stock dividend) of the company's common stock which is effective as of November 8, 1996. (B) Assuming the conversion of the Serial Preference Stock II - Series 1 and Series 3.