Exhibit 11
UNION CARBIDE CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE FOR THE FIVE YEARS ENDED DECEMBER 31, 1997
(In millions of dollars except per share amounts)
Year Ended December 31,
1997 1996
Basic -
Income before cumulative effect of change
in accounting principle $ 676 $ 593
Less: Dividends on ESOP shares, pre-tax (9) (13)
Appreciation on ESOP shares redeemed
for cash (23) -
Income before cumulative effect of change
in accounting principle adjusted for
basic calculation 644 580
Cumulative effect of change in accounting
principle (17) -
Net income - common stockholders, adjusted for
basic calculation $ 627 $ 580
Weighted average number of shares outstanding
for basic calculation 128,185,093 131,029,621
Earnings per share -
Income before cumulative effect of change
in accounting principle $ 5.02 $ 4.43
Cumulative effect of change
in accounting principle (0.13) -
Net income - common stockholders $ 4.89 $ 4.43
Diluted -
Income before cumulative effect of change
in accounting principle, adjusted for
basic calculation $ 644 $ 580
Plus: Dividends on ESOP shares, pre-tax 9 13
Interest on convertible debentures,
net of tax - -
Less: Additional ESOP contribution resulting
from assumed conversion of ESOP shares (1) (1)
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation 652 592
Cumulative effect of change in accounting
principle (17) -
Net income - common stockholders, adjusted for
diluted calculation $ 635 $ 592
Weighted average number of shares outstanding
for basic calculation 128,185,093 131,029,621
Add: Effect of stock options 4,034,969 4,495,656
Effect of equity put options - 403
Shares issuable upon conversion of UCC's
convertible debentures - -
Shares issuable upon conversion of UCC's
convertible ESOP shares 11,739,036 16,120,754
Weighted average shares outstanding,
adjusted for diluted calculation 143,959,098 151,646,434
Earnings Per Share -
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation $ 4.53 $ 3.90
Cumulative effect of change in accounting
principle (0.12) -
Net income - common stockholders, adjusted for
diluted calculation $ 4.41 $ 3.90
Year Ended December 31,
1995 1994
Basic -
Income before cumulative effect of change
in accounting principle $ 925 $ 389
Less: Dividends on ESOP shares, pre-tax (13) (13)
Appreciation on ESOP shares redeemed
for cash - -
Income before cumulative effect of change
in accounting principle adjusted for
basic calculation 912 376
Cumulative effect of change in accounting
principle - -
Net income - common stockholders, adjusted for
basic calculation $ 912 $ 376
Weighted average number of shares outstanding
for basic calculation 137,219,676 149,904,755
Earnings per share -
Income before cumulative effect of change
in accounting principle $ 6.65 $ 2.51
Cumulative effect of change
in accounting principle - -
Net income - common stockholders $ 6.65 $ 2.51
Diluted -
Income before cumulative effect of change
in accounting principle, adjusted for
basic calculation $ 912 $ 376
Plus: Dividends on ESOP shares, pre-tax 13 13
Interest on convertible debentures,
net of tax - -
Less: Additional ESOP contribution resulting
from assumed conversion of ESOP shares (1) (1)
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation 924 388
Cumulative effect of change in accounting
principle - -
Net income - common stockholders, adjusted for
diluted calculation $ 924 $ 388
Weighted average number of shares outstanding
for basic calculation 137,219,676 149,904,755
Add: Effect of stock options 4,367,153 4,208,776
Effect of equity put options - 495
Shares issuable upon conversion of UCC's
convertible debentures - -
Shares issuable upon conversion of UCC's
convertible ESOP shares 16,341,367 16,542,644
Weighted average shares outstanding,
adjusted for diluted calculation 157,928,196 170,656,670
Earnings Per Share -
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation $ 5.85 $ 2.27
Cumulative effect of change in accounting
principle - -
Net income - common stockholders, adjusted for
diluted calculation $ 5.85 $ 2.27
Year Ended December 31,
1993
Basic -
Income before cumulative effect of change
in accounting principle $ 165
Less: Dividends on ESOP shares, pre-tax (13)
Appreciation on ESOP shares redeemed
for cash -
Income before cumulative effect of change
in accounting principle adjusted for
basic calculation 152
Cumulative effect of change in accounting
principle (97)
Net income - common stockholders, adjusted for
basic calculation $ 55
Weighted average number of shares outstanding
for basic calculation 147,821,255
Earnings per share -
Income before cumulative effect of change
in accounting principle $ 1.03
Cumulative effect of change
in accounting principle (0.66)
Net income - common stockholders $ 0.37
Diluted -
Income before cumulative effect of change
in accounting principle, adjusted for
basic calculation $ 152
Plus: Dividends on ESOP shares, pre-tax 13
Interest on convertible debentures,
net of tax 4
Less: Additional ESOP contribution resulting
from assumed conversion of ESOP shares (1)
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation 168
Cumulative effect of change in accounting
principle (97)
Net income - common stockholders, adjusted for
diluted calculation $ 71
Weighted average number of shares outstanding
for basic calculation 147,821,255
Add: Effect of stock options 3,483,252
Effect of equity put options -
Shares issuable upon conversion of UCC's
convertible debentures 4,545,194
Shares issuable upon conversion of UCC's
convertible ESOP shares 16,796,109
Weighted average shares outstanding,
adjusted for diluted calculation 172,645,810
Earnings Per Share -
Income before cumulative effect of change
in accounting principle, adjusted for
diluted calculation $ 0.97
Cumulative effect of change in accounting
principle (0.56)
Net income - common stockholders, adjusted for
diluted calculation $ 0.41