1 Exhibit 11 TRW Inc. and Subsidiaries ------------------------- COMPUTATION OF EARNINGS PER SHARE - UNAUDITED --------------------------------------------- (In Millions Except Per Share Amounts) Six Months Ended June 30 ------------------------ PRIMARY 1997 1996 - ------- ---- ---- Earnings from continuing operations $ 253.6 $ 219.6 Less preference dividend requirements 0.3 0.3 -------- -------- Earnings applicable to common shares and common share equivalents 253.3 219.3 Earnings from discontinued operations -- 27.9 -------- -------- Net earnings applicable to common shares and common share equivalents $ 253.3 $ 247.2 ======== ======== Average common shares outstanding 124.4 130.5 Stock options and performance share rights, based on the treasury stock method using average market price 3.1 3.1 -------- -------- Average common shares and common share equivalents 127.5 133.6 ======== ======== Primary earnings per share from continuing operations $ 1.99 $ 1.64 Primary earnings per share from discontinued operations -- 0.21 -------- -------- Primary earnings per share $ 1.99 $ 1.85 ======== ======== FULLY DILUTED - ------------- Earnings from continuing operations applicable to common shares and common share equivalents $ 253.3 $ 219.3 Dividends assuming conversion of other dilutive securities: (A) Dilutive preference dividends 0.3 0.3 -------- -------- Earnings from continuing operations applicable to fully diluted shares 253.6 219.6 Earnings from discontinued operations -- 27.9 -------- -------- Net earnings applicable to fully diluted shares $ 253.6 $ 247.5 ======== ======== Average common shares outstanding 124.4 130.5 Common shares assuming conversion of other dilutive securities: (A) Dilutive preference shares 1.0 1.1 Stock options and performance share rights, based on the treasury stock method using closing market price if higher than average market price 3.6 3.1 -------- -------- Average fully diluted shares 129.0 134.7 ======== ======== Fully diluted earnings per share from continuing operations $ 1.97 $ 1.63 Fully diluted earnings per share from discontinued operations -- 0.21 -------- -------- Fully diluted earnings per share $ 1.97 $ 1.84 ======== ======== (A) Assuming the conversion of the Serial Preference Stock II - Series 1 and Series 3.