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Exhibit 11
HARRAH'S ENTERTAINMENT, INC.
COMPUTATIONS OF PER SHARE EARNINGS
| Year Ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2002 | 2001 | 2000 | |||||||||
Income (loss) from continuing operations | $ | 324,643,000 | $ | 208,351,000 | $ | (11,344,000 | ) | |||||
Discontinued operations, net of tax | 1,555,000 | 639,000 | – | |||||||||
Income (loss) before extraordinary losses and cumulative effect of change in accounting principle | 326,198,000 | 208,990,000 | (11,344,000 | ) | ||||||||
Extraordinary losses, net of tax | – | (23,000 | ) | (716,000 | ) | |||||||
Cumulative effect of change in accounting principle, net of tax | (91,169,000 | ) | – | – | ||||||||
Net income (loss) | $ | 235,029,000 | $ | 208,967,000 | $ | (12,060,000 | ) | |||||
BASIC EARNINGS (LOSS) PER SHARE | ||||||||||||
Weighted average number of common shares outstanding | 111,211,833 | 113,539,872 | 117,189,838 | |||||||||
BASIC EARNINGS (LOSS) PER COMMON SHARE | ||||||||||||
Income (loss) from continuing operatons | $ | 2.92 | $ | 1.83 | $ | (0.09 | ) | |||||
Discontinued operations, net | 0.01 | 0.01 | – | |||||||||
Income (loss) before extraordinary losses and cumulative effect of change in accounting principle | 2.93 | 1.84 | (0.09 | ) | ||||||||
Extraordinary losses, net | – | – | (0.01 | ) | ||||||||
Cumulative effect of change in accounting principle, net | (0.82 | ) | – | – | ||||||||
Net income (loss) | $ | 2.11 | $ | 1.84 | $ | (0.10 | ) | |||||
DILUTED EARNINGS (LOSS) PER SHARE | ||||||||||||
Weighted average number of common shares outstanding | 111,211,833 | 113,539,872 | 117,189,838 | |||||||||
Additional shares based on average market price for period applicable to: | ||||||||||||
Restricted stock | 631,532 | 697,130 | – | |||||||||
Stock options | 1,691,000 | 1,471,400 | – | |||||||||
Average number of common and common equivalent shares outstanding(a) | 113,534,365 | 115,708,402 | 117,189,838 | |||||||||
DILUTED EARNINGS (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE | ||||||||||||
Income (loss) from continuing operations | $ | 2.86 | $ | 1.80 | $ | (0.09 | ) | |||||
Discontinued operations, net | 0.01 | 0.01 | – | |||||||||
Income (loss) before extraordinary losses and cumulative effect of change in accounting principle | 2.87 | 1.81 | (0.09 | ) | ||||||||
Extraordinary losses, net | – | – | (0.01 | ) | ||||||||
Cumulative effect of change in accounting principle, net | (0.80 | ) | – | – | ||||||||
Net income (loss) | $ | 2.07 | $ | 1.81 | $ | (0.10 | ) | |||||
- (a)
- The diluted share base for 2000 excludes common stock equivalents of 481,338 and 1,407,362 related to restricted stock and stock options, respectively. These shares are excluded due to their antidilutive effect as a result of the Company's net loss in 2000.
HARRAH'S ENTERTAINMENT, INC. COMPUTATIONS OF PER SHARE EARNINGS