EXHIBIT 11 MERRILL LYNCH & CO., INC. AND SUBSIDIARIES COMPUTATION OF PER COMMON SHARE EARNINGS (In Millions, Except Per Share Amounts) FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED -------------------------- ------------------------- SEPT. 24, SEPT. 25, SEPT. 24, SEPT. 25, 1999 1998 1999 1998 -------- -------- -------- -------- EARNINGS Net earnings $ 572 $ (163) $1,854 $ 900 Preferred stock dividends (10) (10) (29) (29) ----- ------ ------ ----- Net earnings applicable to common stockholders $ 562 $ (173) $1,825 $ 871 ===== ====== ====== ===== WEIGHTED-AVERAGE SHARES OUTSTANDING 370.3 357.6 367.6 354.1 ----- ------ ------ ----- Effect of Dilutive Instruments: Employee stock options 27.1 29.6 29.3 30.9 FCCAAP shares 16.2 16.2 16.4 16.7 Restricted units 5.4 5.1 5.3 4.9 ESPP shares 0.1 - 0.1 0.1 ----- ------ ------ ----- DILUTIVE POTENTIAL COMMON SHARES 48.8 50.9 51.1 52.6 ----- ------ ------ ----- TOTAL WEIGHTED-AVERAGE DILUTED SHARES 419.1 408.5 (1) 418.7 406.7 ===== ====== ====== ===== BASIC EARNINGS PER SHARE $1.52 $(0.48) $ 4.97 $2.46 ===== ====== ====== ===== DILUTED EARNINGS PER SHARE $1.34 $(0.48)(1) $ 4.36 $2.14 ===== ====== ====== =====
(1) Since accounting principles require that a net loss not be diluted by potential comman shares, diluted loss per share for the 1998 third quarter is calculated using weighted-average shares outstanding only. Basic and diluted earnings per share are based on actual numbers before rounding.