EXHIBIT 11
HILTON HOTELS CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
1997 1998 1999
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BASIC
Income (in millions)
Continuing operations $ 183 $ 188 $ 176
Deduct dividends on preferred shares (13) (10) --
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Income applicable to common stock
from continuing operations 170 178 176
Discontinued gaming operations 67 109 --
Cumulative effect of accounting change -- -- (2)
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Income applicable to common stock $ 237 $ 287 $ 174
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Shares
Weighted average common shares 249,723,000 250,306,000 266,433,000
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Basic earnings per common share
Continuing operations $ 0.68 $ 0.71 $ 0.66
Discontinued gaming operations 0.27 0.44 --
Cumulative effect of accounting change -- -- (0.01)
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Net income $ 0.95 $ 1.15 $ 0.65
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DILUTED
Income (in millions) $ 183 $ 188 $ 176
Continuing operations
Add after tax interest applicable to
5% convertible notes 15 15 15
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Before extraordinary item, as adjusted 198 203 191
Discontinued gaming operations 67 109 --
Cumulative effect of accounting change -- -- (2)
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Net income $ 265 $ 312 $ 189
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Shares
Weighted average common shares - basic 249,723,000 250,306,000 266,433,000
Assuming conversion of preferred stock 13,645,000 9,845,000 --
Assuming conversion of 5% convertible notes 15,489,000 15,489,000 22,558,000
Dilutive effect of assumed option exercises
(as determined by the application of the
treasury stock method) 2,374,000 1,909,000 1,204,000
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Common and common equivalent shares
as adjusted 281,231,000 277,549,000 209,195,000
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Diluted earnings per common share
Continuing operations $ 0.70(1) $ 0.73(1) $ 0.66
Discontinued gaming operations 0.24(1) 0.39(1) --
Cumulative effect of accounting change -- -- (0.01)
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Net income $ 0.94 $ 1.12 $ 0.65
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(1) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 13 of Statement of
Financial Accounting Standards No. 128 because it produces an
anti-dilutive result for continuing operations in the 1997 and 1998
periods.