Exhibit 11
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CONRAIL INC.
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EARNINGS (LOSS) PER SHARE COMPUTATIONS
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($ In Millions Except Per Share)
Years ended December 31,
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1993 1992 1991
---- ---- ----
Primary
- -------
Income (loss) before the cumulative
effect of changes in accounting
principles (1) $234 $282 $(207)
Dividends declared on Series A ESOP
convertible junior preferred stock
(ESOP Stock), net of tax benefits (13) (14) (14)
---- ---- ----
221 268 (221)
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ----
Adjusted net income (loss) $147 $268 $(221)
==== ==== =====
Fully Diluted
- -------------
Income (loss) before the cumulative
effect of changes in accounting
principles (1) 234 282 (207)
Dividends declared on ESOP Stock,
net of tax benefits (14)
Nondiscretionary adjustment (2) (6) (7)
---- ---- ----
228 275 (221)
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ----
Adjusted net income (loss) $154 $275 $(221)
==== ==== =====
Page 1 of 3
Exhibit 11
----------
CONRAIL INC.
------------
EARNINGS (LOSS) PER SHARE COMPUTATIONS
--------------------------------------
($ In Millions Except Per Share)
Years ended December 31,
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1993 1992 1991 (3)
---------- ---------- ----------
Weighted average number of shares
(4)
Primary
Weighted average number of common
shares outstanding 79,656,302 80,823,000 81,883,970
Effect of shares issuable under
stock option plans 990,193 920,648
---------- ---------- ----------
80,646,495 81,743,648 81,883,970
Fully diluted
Weighted average number of common
shares outstanding 79,656,302 80,823,000 81,883,970
ESOP Stock 9,954,311 9,966,200
Effect of shares issuable under
stock option plans 1,225,369 1,066,993
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90,835,982 91,856,193 81,883,970
Income (loss) per common share (4)
Before the cumulative effect of
changes in accounting principles
Primary $2.74 $3.28 $(2.70)
Fully diluted 2.51 2.99 (2.70)
Cumulative effect of changes in
accounting principles
Primary (.92)
Fully diluted (.81)
Net income (loss) per common share
Primary $1.82 $3.28 $(2.70)
Fully diluted 1.70 2.99 $(2.70)
Page 2 of 3
Exhibit 11
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CONRAIL INC.
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EARNINGS (LOSS) PER SHARE COMPUTATIONS
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Notes: 1. The Company adopted Statement of Financial Accounting
Standards No. 106 ("Employers' Accounting for
Postretirement Benefits Other Than Pensions") and
Statement of Financial Accounting Standards No. 109
("Accounting for Income Taxes") effective January 1,
1993. As a result, the Company recorded cumulative
after tax charges of $22 million and $52 million,
respectively.
2. Represents the increase, net of income tax benefits,
in ESOP-related expenses assuming conversion of all
ESOP Stock to common stock.
3. Primary and fully diluted loss per share are based on
the weighted average number of common shares
outstanding and exclude shares issuable under stock
option plans and the conversion of ESOP stock to
common stock since the effects of their inclusion
are antidilutive.
4. The Company's Board of Directors authorized a two-for-
one common stock split which was effected in the
form of a stock dividend distributed on
September 15, 1992. The Board of Directors also
declared a stock dividend on the ESOP Stock in the
amount of one share of ESOP Stock for each share of
ESOP Stock outstanding as of August 31, 1992 and
distributed on September 15, 1992. All references
with regard to the number of shares for common
stock, ESOP Stock, and shares issuable under stock
option plans and per share amounts have been
restated to reflect the stock splits.
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