EXHIBIT 11 MERRILL LYNCH & CO., INC. AND SUBSIDIARIES COMPUTATION OF PER COMMON SHARE EARNINGS (in millions, except per share amounts)
For the Three Months For the Nine Months Ended Ended -------------------------- ----------------------- Sept. 25, Sept. 26, Sept. 25, Sept.26, 1998 1997 1998 1998 --------- --------- --------- -------- EARNINGS (LOSS) Net earnings (loss) $(164) $ 502 $ 915 $1,466 Preferred stock dividends (9) (9) (28) (29) ----- ----- ----- ------ Net earnings (loss) applicable to common stockholders $(173) $ 493 $ 887 $1,437 ===== ===== ===== ====== WEIGHTED-AVERAGE SHARES OUTSTANDING 357.6 339.8 354.1 339.2 ----- ----- ----- ------ EFFECT OF DILUTIVE INSTRUMENTS Employee stock options 29.6 30.6 30.9 29.2 FCCAAP shares 16.2 21.1 16.7 20.8 Restricted units 5.0 5.4 4.9 5.0 ESPP shares - - .1 .1 Convertible debt - - - .1 ----- ----- ----- ------ DILUTIVE POTENTIAL COMMON SHARES 50.8 57.1 52.6 55.2 ----- ----- ----- ------ TOTAL WEIGHTED-AVERAGE DILUTED SHARES 408.5 (1) 396.9 406.7 394.4 ===== ===== ===== ====== BASIC EARNINGS (LOSS) PER SHARE $(.49) $1.45 $2.50 $ 4.24 ===== ===== ===== ====== DILUTED EARNINGS (LOSS) PER SHARE $(.49)(1) $1.24 $2.18 $ 3.64 ===== ===== ===== ======
(1) Since accounting principles require that a net loss not be diluted by potential common shares, diluted loss per share for the 1998 third quarter is calculated using weighted-average shares outstanding only. Notes: Basic and diluted earnings per share are based on actual numbers before rounding. Prior periods have been restated for the Midland Walwyn merger, as required under pooling-of-interests accounting.