HFS Incorporated and Subsidiaries EXHIBIT 11 COMPUTATION OF PER SHARE EARNINGS (Unaudited) (In thousands, except per share data) For the Three Months Ended September 30, 1996 1995 ------------------- ------------------ Fully Fully Primary Diluted Primary Diluted ----------------------------------------- Net income .................................................................. $ 61,070 $ 61,070 $ 27,119 $ 27,119 Convertible debt interest and amortization of deferred loan costs, net of tax ........................................ 1,134 1,134 1,092 1,092 -------- -------- -------- -------- Net income as adjusted ...................................................... $ 62,204 $ 62,204 $ 28,211 $ 28,211 ======== ======== ======== ======== Weighted average common shares outstanding 123,322 123,322 99,398 99,398 Incremental shares for outstanding stock options and warrants ................................................ 11,052 11,364 7,306 8,094 Convertible debt ............................................................ 8,256 8,256 8,266 8,266 -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding ............................................. 142,630 142,942 114,970 115,758 ======== ======== ======== ======== Net income per share ........................................................ $ 0.44 $ 0.44 $ 0.25 $ 0.24 ======== ======== ======== ======== For the Three Months Ended September 30, 1996 1995 ------------------- ------------------ Fully Fully Primary Diluted Primary Diluted ----------------------------------------- Net income .................................................................. $122,632 $122,632 $ 59,364 $ 59,364 Convertible debt interest and amortization of deferred loan costs, net of tax ........................................ 3,369 3,369 3,276 3,276 -------- -------- -------- -------- Net income as adjusted ...................................................... $126,001 $126,001 $ 62,640 $ 62,640 ======== ======== ======== ======== Weighted average common shares outstanding ................................................. 112,036 112,036 96,166 96,166 Incremental shares for outstanding stock options and warrants ................................................ 10,667 11,391 5,132 7,624 Convertible debt ............................................................ 8,257 8,257 8,266 8,266 -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding 130,960 131,684 109,564 112,056 ======== ======== ======== ======== Net income per share ........................................................ $ 0.96 $ 0.96 $ 0.57 $ 0.56 ======== ======== ======== ========