1 Exhibit 11 TRW INC. AND SUBSIDIARIES ------------------------- COMPUTATION OF EARNINGS PER SHARE --------------------------------- (In Millions Except Per Share Amounts) Years ended December 31 ----------------------- PRIMARY (A) 1996 1995 1994 - ----------- ---- ---- ---- Earnings from continuing operations $ 182.4 $ 395.4 $ 277.1 Less preference dividend requirements 0.8 0.8 0.7 ------- ------- ------- Earnings applicable to common shares and common share equivalents 181.6 394.6 276.4 Earnings from discontinued operations 37.9 50.8 55.7 Gain on disposal of discontinued operations 259.8 n/a n/a ------- ------- ------- Net earnings applicable to common shares and common share equivalents $ 479.3 $ 445.4 $ 332.1 ======= ======= ======= Average common shares outstanding 128.7 130.6 129.2 Stock options and performance share rights, based on the treasury stock method using average market price 3.0 2.6 2.4 ------- ------- ------- Average common shares and common share equivalents 131.7 133.2 131.6 ===== ===== ====== Primary earnings per share from continuing operations $ 1.38 $ 2.96 $ 2.10 Primary earnings per share from discontinued operations 0.29 0.38 0.42 Primary earnings per share from gain on disposal of discontinued operations 1.97 n/a n/a ------- ------- ------- Primary earnings per share $ 3.64 $ 3.34 $ 2.52 ======= ====== ======= FULLY DILUTED (A) - ----------------- Earnings from continuing operations applicable to common shares and common share equivalents $ 181.6 $ 394.6 $ 276.4 Dividends assuming conversion of other dilutive securities: (B) Dilutive preference dividends 0.8 0.8 0.7 ------- ------- ------- Earnings from continuing operations applicable to fully diluted shares 182.4 395.4 277.1 Earnings from discontinued operations 37.9 50.8 55.7 Gain on disposal of discontinued operations 259.8 n/a n/a ------- ------- ------- Net earnings applicable to fully diluted shares $ 480.1 $ 446.2 $ 332.8 ======= ======= ======= Average common shares outstanding 128.7 130.6 129.2 Common shares assuming conversion of other dilutive securities: (B) Dilutive preference shares 1.1 1.2 1.3 Stock options and performance share rights, based on the treasury stock method using closing market price if higher than average market price 3.4 3.0 2.4 ------- ------- ------- Average fully diluted shares 133.2 134.8 132.9 ===== ===== ======= Fully diluted earnings per share from continuing operations $ 1.37 $ 2.93 $ 2.09 Fully diluted earnings per share from discontinued operations 0.28 0.38 0.41 Fully diluted earnings per share from gain on disposal of discontinued operations 1.95 n/a n/a ------- ------- ------- Fully diluted earnings per share $ 3.60 $ 3.31 $ 2.50 ====== ====== ======= <FN> (A) 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 was effective as of November 8, 1996. (B) Assuming the conversion of the Serial Preference Stock II - Series 1 and Series 3.