HFS Incorporated and Subsidiaries COMPUTATION OF PER SHARE EARNINGS (In thousands, except per share amounts) For the Years Ended December 31, 1996 1995 1994 --------------------------------------------------------------------------------- Fully Fully Fully Primary Diluted Primary Diluted Primary Diluted ----------- ----------- ----------- ----------- ----------- ----------- Net income $ 257,241 $ 257,241 $ 157,850 $ 157,850 $ 122,533 $ 122,533 Convertible debt interest and amortization of deferred loan costs, net of tax 4,500 4,500 4,505 4,505 -- -- ----------- ----------- ----------- ----------- ----------- ----------- Net income, as adjusted $ 261,741 $ 261,741 $ 162,355 $ 162,355 $ 122,533 $ 122,533 =========== =========== =========== =========== =========== =========== Weighted average common shares outstanding 144,784 144,784 125,967 125,967 118,746 118,746 Incremental shares for outstanding stock options and warrants 11,342 12,110 8,257 10,256 7,663 7,691 Contingent shares -- -- -- -- 3,126 3,126 Convertible debt 8,252 8,252 8,266 8,266 -- -- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average common common equivalent shares outstanding 164,378 165,146 142,490 144,489 129,535 129,563 =========== =========== =========== =========== =========== =========== Net income per share $ 1.59 $ 1.58 $ 1.14 $ 1.12 $ .95 $ .95 =========== =========== =========== =========== =========== ===========