EXHIBIT 11
UNITED HEALTHCARE CORPORATION
STATEMENT RE COMPUTATION OF PER COMMON SHARE EARNINGS
YEAR ENDED DECEMBER 31
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1996 1995 1994
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(in thousands, except per share data)
PRIMARY:
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NET EARNINGS BEFORE EXTRAORDINARY GAIN $355,637 (1) $285,964 (2) $ 288,139 (3)
EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY -- -- 1,377,075
LESS CONVERTIBLE PREFERRED STOCK DIVIDENDS 28,752 7,188 --
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NET EARNINGS APPLICABLE TO COMMON
SHAREHOLDERS $326,885 $278,776 $1,665,214
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WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Weighted average number of common shares
outstanding 181,601 173,587 170,711
Additional equivalent shares issuable from assumed
exercise of stock options 4,244 3,856 4,498
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WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 185,845 177,443 175,209
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NET EARNINGS PER COMMON SHARE BEFORE
EXTRAORDINARY GAIN $ 1.76 (1) $ 1.57 (2) $ 1.64 (3)
EXTRAORDINARY GAIN PER COMMON SHARE -- -- 7.86
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NET EARNINGS PER COMMON SHARE $ 1.76 $ 1.57 $ 9.50
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FULLY DILUTED:
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NET EARNINGS BEFORE EXTRAORDINARY GAIN $355,637 $285,964 $ 288,139
EXTRAORDINARY GAIN ON SALE OF SUBSIDIARY -- -- 1,377,075
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NET EARNINGS APPLICABLE TO COMMON
SHAREHOLDERS $355,637 $285,964 $1,665,214
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WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Weighted average number of common shares
outstanding 181,601 173,587 170,711
Additional equivalent shares issuable from assumed
exercise of stock options 4,232 5,132 4,506
Assumed conversion of convertible preferred stock 10,106 2,547 --
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WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 195,939 181,266 175,217
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NET EARNINGS PER COMMON SHARE BEFORE
EXTRAORDINARY GAIN $ 1.82 $ 1.58 $ 1.64
EXTRAORDINARY GAIN PER COMMON SHARE -- -- 7.86
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NET EARNINGS PER COMMON SHARE $ 1.82 (4) $ 1.58 (4) $ 9.50 (5)
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(1) Excluding the non-operating merger costs associated with the acquisition
of HealthWise of America, Inc. of $14.9 million ($9.1 million after tax,
or $0.05 per common share) and the provision for future losses on two
multi-year contracts of $45.0 ($27.4 million after tax, or $0.15 per
common share), 1996 net earnings would have been $392.2 million, or $1.96
per common share.
(2) Excluding restructuring charges of $153.8 million ($96.9 million after
tax, or $0.55 per common share) associated with the acquisition of The
MetraHealth Companies, Inc., 1995 net earnings would have been $382.9
million, or $2.12 per common share.
(3) Excluding the non-operating merger costs of $35.9 million ($22.3 million
after tax, or $0.13 per common share) incurred in connection with the
acquisitions of Complete Health Services, Inc. and Ramsay-HMO, Inc., 1994
net earnings before extraordinary gain would have been $310.4 million, or
$1.77 per common share.
(4) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15
because it produces an anti-dilutive result.
(5) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB
Opinion No. 15 because it results in dilution of less than 3%.