EX-11 3 exhibit11.htm COMPUTATION OF EARNINGS PER SHARE EXHIBIT 11

EXHIBIT 11
 
 

THE INTERPUBLIC GROUP OF COMPANIES, INC.

COMPUTATION OF EARNINGS PER SHARE

(Dollars in Thousands Except Per Share Data)

Year Ended December 31
                   
 

2000      

  

1999      

  

1998      

  

1997      

  

1996      

BASIC:

Net income

$420,261

$359,509

$374,174

$168,674

$262,337

Weighted average number of
   common shares outstanding

359,615,126

  

351,966,488

  

346,908,503

  

333,764,150

  

333,001,925

Net income per share - Basic

$1.17

$1.02

$1.08

$ .51

$ .79

DILUTED:

Net income

$420,261

$359,509

$374,174

$168,684

$262,314

After tax interest savings
   on assumed conversion of
   subordinated debentures(1)(2)(3)(4)

--

  

--

  

--

  

--

  

--

Dividends paid net of
   related income tax applicable
   to the Restricted Stock Plan

         666

  

         631

  

         541

  

         447

  

         384

Net income, as adjusted

$420,927

$360,140

$374,715

$169,131

$262,698

Weighted average number of
   common shares outstanding

359,615,126

  

351,966,488

  

346,908,503

  

333,764,150

  

333,001,925

Assumed conversion of
  subordinated debentures(1)(2)(3)(4)

--

  

--

  

5,321

  

--

  

--

Weighted average number of
   incremental shares in
   connection with assumed
   exercise of stock options

7,568,272

  

9,129,110

  

9,029,393

  

8,176,116

  

5,899,086

Weighted average number of
   incremental shares in
   connection with the
   Restricted Stock Plan  

    3,393,666

  

    3,536,805

  

    3,453,838

  

    3,277,294

  

    3,211,128

Total

370,577,064

364,632,403

359,397,055

345,217,560

342,112,139

Diluted earnings per share data:

Net income per share - diluted

$1.14

$0.99

$1.04

$ .49

$ .77



All data for prior periods have been adjusted for the two-for-one stock split effective July 15, 1999.

(1) The computation of diluted EPS for 2000 and 1999 excludes the assumed conversion of the 1.87% and 1.80% Convertible Subordinated
      Notes due 2006 and 2004, respectively, because they were antidilutive.

(2) The computation of diluted EPS for 1998, 1997 and 1996 excludes the assumed conversion of the 1.80% Convertible Subordinated
      Notes due 2004 because they were antidilutive.

(3) In the fourth quarter of 1997, the Company redeemed its 3 3/4 % Convertible Subordinated Debentures due 2002.

     Substantially all of the outstanding debentures were converted into approximately 4.3 million shares of the Company's

     common stock.

(4) The computation of diluted EPS for 1997 and 1996 excludes the assumed conversion of the 3 3/4% Convertible Subordinated
     Debentures due 2002 because they were antidilutive.