EX-11 3 ex11302.txt EXHIBIT 11 EXHIBIT 11 THE ST. PAUL COMPANIES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE Three Months and Nine Months Ended September 30, 2002 and 2001 (In millions, except per share data) Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- (in millions) 2002 2001 2002 2001 ----------- ------ ------ ------ ------ EARNINGS Basic: Net income (loss), as reported $ 63 $ (659) $ (26) $ (352) Preferred stock dividend, net of taxes (2) (2) (6) (6) Premium on preferred shares redeemed (1) (1) (6) (6) ------ ------ ------ ------ Net income (loss) available to common shareholders $ 60 $ (662) $ (38) $ (364) ====== ====== ====== ====== Diluted: Net income (loss) available to common shareholders $ 60 $ (662) $ (38) $ (364) Effect of dilutive securities: Convertible preferred stock 2 - - - Zero coupon convertible notes 1 - - - ------ ------ ------ ------ Net income (loss), as adjusted $ 63 $(662) $ (38) $ (364) ====== ====== ====== ====== COMMON SHARES Basic: Weighted average common shares outstanding 221 209 212 213 ====== ====== ====== ====== Diluted: Weighted average common shares outstanding 221 209 212 213 Effect of dilutive securities: Stock options and other incentive plans 1 - - - Convertible preferred stock 6 - - - Zero coupon convertible notes 2 - - - ------ ------ ------ ------ Total 230 209 212 213 ====== ====== ====== ====== EARNINGS (LOSS) PER COMMON SHARE Basic $ 0.27 $(3.16) $(0.18) $(1.71) ====== ====== ====== ====== Diluted $ 0.27 $(3.16) $(0.18) $(1.71) ====== ====== ====== ====== Diluted EPS is the same as Basic EPS for the nine month period ended September 30, 2002, as well as for the reported periods ended 2001, because Diluted EPS calculated in accordance with Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share," for The St. Paul's loss from continuing operations, results in a lesser loss per share than the Basic EPS calculation does. The provisions of SFAS No. 128 prohibit this "anti-dilution" of earnings per share, and require that the larger Basic loss per share also be reported as the Diluted loss per share amount.