EX-11 33 0033.txt COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 Page 1 of 2 THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (Amounts in Thousands Except Per Share Data) Three Months Ended June 30 --------------------------- Basic 2000 1999 ------------ ------------ Net income $ 136,839 $ 150,007 Weighted average number of common shares outstanding 294,438 292,201 Earnings per common and common equivalent share $ .46 $ .51 ============ ============ Three Months Ended June 30 ---------------------------- Diluted 2000 1999 ------------ ------------ Net income $ 136,839 $ 150,007 Add: After tax savings on assumed conversion of subordinated debentures and notes 4,614 2,813 Dividends paid net of related income tax applicable to restricted stock 173 160 ------------ ------------ Net income, as adjusted $ 141,626 $ 152,980 ============ ============ Weighted average number of common shares outstanding 294,438 292,201 Weighted average number of incremental shares in connection with restricted stock and assumed exercise of stock options 9,745 10,442 Assumed conversion of subordinated debentures and notes 13,053 8,813 ------------ ------------ Total 317,236 311,456 ============ ============ Earnings per common and common equivalent share $ .45 $ .49 ============ ============ EXHIBIT 11 Page 2 of 2 THE INTERPUBLIC GROUP OF COMPANIES, INC. AND ITS SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (Amounts in Thousands Except Per Share Data) Six Months Ended June 30 -------------------------- Basic 2000 1999 ----------- ----------- Net income $ 174,134 $ 198,719 Weighted average number of common shares outstanding 294,168 291,366 Earnings per common share $ .59 $ .68 =========== =========== Six Months Ended June 30 -------------------------- Diluted 2000 1999 ----------- ----------- Net income $ 174,134 $ 198,719 Add: After tax interest savings on assumed conversion of subordinated debentures and notes - 3,898 Dividends paid net of related income tax applicable to restricted stock 335 303 ----------- ----------- Net income, as adjusted $ 174,469 $ 202,920 =========== =========== Weighted average number of common shares outstanding 294,168 291,366 Weighted average number of incremental shares in connection with restricted stock and assumed exercise of stock options 10,222 10,844 Assumed conversion of subordinated debentures and notes - 6,693 ----------- ----------- Total 304,390 308,903 =========== =========== Earnings per common and common equivalent share $ .57 $ .66 =========== =========== Note: The computation of diluted EPS for 2000 excludes the assumed conversion of the 1.87% and 1.8% Convertible Subordinated Notes and for 1999 excludes the assumed conversion of the 1.87% Convertible Subordinated Notes, respectively, because they were anti-dilutive.