Exhibit 11
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CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
[CAPTION]
($ In Millions Except Per Share)
Years ended December 31,
------------------------
1995 1994 1993
---- ---- ----
[S]
Primary [C] [C] [C]
- -------
Income before the cumulative effect
of changes in accounting
principles (1) $264 $324 $234
Dividends declared on Series A ESOP
convertible junior preferred stock
(ESOP Stock), net of tax benefits (13) (13) (13)
---- ---- ----
251 311 221
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ----
Adjusted net income $251 $311 $147
==== ==== ====
Fully Diluted
- -------------
Income before the cumulative
effect of changes in accounting
principles (1) 264 324 234
Nondiscretionary adjustment (2) (3) (5) (6)
---- ---- ----
261 319 228
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ----
Adjusted net income $261 $319 $154
==== ==== ====
Page 1 of 3
Exhibit 11
----------
CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
[CAPTION]
($ In Millions Except Per Share)
Years ended December 31,
-----------------------------------
1995 1994 1993
---------- ---------- ----------
[S] [C] [C] [C]
Weighted average number of shares (3)
Primary
Weighted average number of
common shares outstanding 78,144,694 79,089,464 79,656,302
Effect of shares issuable under
employee stock compensation
plans 589,253 585,317 990,193
---------- ---------- ----------
78,733,947 79,674,781 80,646,495
========== ========== ==========
Fully diluted
Weighted average number of
common shares outstanding 78,144,694 79,089,464 79,656,302
ESOP Stock 9,799,611 9,887,940 9,954,311
Effect of shares issuable under
employee stock compensation
plans 758,407 585,317 1,225,369
---------- ---------- ----------
88,702,712 89,562,721 90,835,982
========== ========== ==========
Income per common share
Before the cumulative effect of
changes in accounting principles
Primary $3.19 $3.90 $2.74
Fully diluted 2.94 3.56 2.51
Cumulative effect of changes in
accounting principles
Primary (.92)
Fully diluted (.81)
Net income per common share
Primary $3.19 $3.90 $1.82
Fully diluted 2.94 3.56 1.70
Page 2 of 3
Exhibit 11
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CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
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. Shares held by the Employee Benefits Trust
(the "Trust") are not considered outstanding
for earnings per share computations until
issued by the Trust.
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