EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
(In millions, except share and per share data)
EARNINGS PER SHARE
In the third quarter and nine months of 1996, earnings per share
equals net income, minus dividends on the Company's preferred
stock ("PRIDES"), divided by the weighted-average number of
common shares outstanding during the period. In the third
quarter and nine months of 1995, earnings per share equals net
income divided by the weighted-average number of common shares
and common share equivalents outstanding during the period. The
number of common share equivalents outstanding was based on the
assumed conversion of the PRIDES. For the purpose of this
computation, the respective conversion rates of common stock for
each share of PRIDES were based on the average market value of
the Company's common stock during the applicable period. Common
share equivalents relating to the PRIDES were not included in the
third quarter or nine months of 1996 since their effect would
have been anti-dilutive.
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- ---------------------------
1996 1995 1996 1995
-------------------------- ---------------------------
Weighted-average shares outstanding:
Common shares 63,679,000 63,463,000 63,650,000 62,870,000
Common share equivalents - 9,020,000 - 9,719,000
-------------------------- ---------------------------
Total 63,679,000 72,483,000 63,650,000 72,589,000
========================== ===========================
Income before cumulative effect of
accounting change $26 $112 $103 $305
Less preferred stock dividends 9 - 27 -
-------------------------- ---------------------------
$17 $112 $76 $305
-------------------------- ---------------------------
Cumulative effect of accounting
change - - (15) -
-------------------------- ---------------------------
$17 $112 $61 $305
========================== ===========================
Earnings per share:
Income before cumulative effect of
accounting change $0.26 $1.56 $1.19 $4.20
Cumulative effect of accounting
change - - (0.24) -
-------------------------- ---------------------------
Net income $0.26 $1.56 $0.95 $4.20
========================== ===========================
Conversion rate - 0.82 - 0.88
Average market value per share
of common stock - $60.37 - $53.48
/TABLE
EARNINGS PER SHARE (FULLY DILUTED):
Earnings per share (fully diluted) equals net income divided by
the weighted-average number of common shares and common share
equivalents outstanding during the period. The number of common
share equivalents outstanding was based on the maximum potential
issuance of common shares upon conversion of the PRIDES, which is
one share of common for each share of PRIDES. This computation
was made for presentation purposes only since its effect was anti-
dilutive in 1996 and was not material in 1995.
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- ------------------------
1996 1995 1996 1995
-------------------------- ------------------------
Weighted-average shares outstanding:
Common shares 63,679,000 63,463,000 63,650,000 62,870,000
Common share equivalents 11,000,000 11,000,000 11,000,000 11,000,000
-------------------------- ------------------------
Total 74,679,000 74,463,000 74,650,000 73,870,000
========================== ========================
Income before cumulative effect of
accounting change $26 $112 $103 $305
Cumulative effect of accounting
change - - (15) -
-------------------------- ------------------------
Net income $26 $112 $88 $305
========================== ========================
Earnings per share (fully diluted):
Income before cumulative effect of
accounting change $0.34 $1.51 $1.38 $4.13
Cumulative effect of accounting
change - - (0.21) -
-------------------------- ------------------------
Net income $0.34 $1.51 $1.17 $4.13
========================== ========================