EXHIBIT 11
COLUMBIA/HCA HEALTHCARE CORPORATION
SUPPLEMENTAL COMPUTATION OF EARNINGS PER COMMON
AND COMMON EQUIVALENT SHARE
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
1994 1993 1992
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PRIMARY EARNINGS PER COMMON AND COMMON EQUIVALENT
SHARE:
Earnings:
Income from continuing operations................. $ 929 $ 720 $ 293
Discontinued operations:
Income (loss) from operations of discontinued
health plan segment, net of income tax
(benefit)...................................... - 16 (108)
Costs associated with discontinuance of health
plan segment, net of income tax benefit........ - - (17)
Extraordinary loss on extinguishment of debt, net
of income tax benefit............................ (115) (97) (23)
Cumulative effect on prior years of a change in
accounting for income taxes...................... - - 51
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Net income.................................... $ 814 $ 639 $ 196
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Shares used in the computation (in thousands):
Columbia/HCA (prior to Healthtrust Merger):
Weighted average common shares outstanding...... 346,219 334,160 301,921
Dilutive effect of common stock equivalents..... 3,856 5,062 26,643
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Columbia/HCA common and common equivalent
shares......................................... 350,075 339,222 328,564
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Healthtrust:
Weighted average common shares outstanding...... 87,507 81,141 81,386
Dilutive effect of common stock equivalents..... 2,516 2,739 1,952
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Healthtrust common and common equivalent shares. 90,023 83,880 83,338
Merger exchange ratio........................... 0.88 0.88 0.88
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Adjusted Healthtrust common and common
equivalent shares.............................. 79,220 73,814 73,337
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Pooling adjustment:
Healthtrust common shares held as an investment
by Columbia/HCA................................ - - (8,549)
Merger exchange ratio........................... 0.88 0.88 0.88
------- ------- -------
Pooling adjustment.............................. - - (7,523)
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Shares used in earnings per common and
common equivalent share computations......... 429,295 413,036 394,378
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Primary earnings per common and common equivalent
share:
Income from continuing operations................. $ 2.16 $ 1.75 $ .75
Discontinued operations:
Income (loss) from operations of discontinued
health plan segment............................ - .04 (.27)
Costs associated with discontinuance of health
plan segment................................... - - (.05)
Extraordinary loss on extinguishment of debt...... (.27) (.24) (.06)
Cumulative effect on prior years of a change in
accounting for income taxes...................... - - .13
------- ------- -------
Net income.................................... $ 1.89 $ 1.55 $ .50
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EXHIBIT 11
COLUMBIA/HCA HEALTHCARE CORPORATION
SUPPLEMENTAL COMPUTATION OF EARNINGS PER COMMON
AND COMMON EQUIVALENT SHARE
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
1994 1993 1992
------- ------- -------
FULLY DILUTED EARNINGS PER COMMON AND COMMON
EQUIVALENT SHARE:
Earnings:
Income applicable to common stock................. $ 929 $ 720 $ 293
Interest addback on convertible securities, net of
income taxes..................................... 2 3 2
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Adjusted income applicable to common stock...... 931 723 295
Discontinued operations:
Income (loss) from operations of discontinued
health
plan segment, net of income tax (benefit)...... - 16 (108)
Costs associated with discontinuance of health
plan segment, net of income tax benefit........ - - (17)
Extraordinary loss on extinguishment of debt, net
of income tax benefit............................ (115) (97) (23)
Cumulative effect on prior years of a change in
accounting
for income taxes................................. - - 51
------- ------- -------
Net income.................................... $ 816 $ 642 $ 198
======= ======= =======
Shares used in the computation (in thousands):
Columbia/HCA (prior to Healthtrust Merger):
Weighted average common shares outstanding...... 346,219 334,160 301,921
Dilutive effect of common stock equivalents and
other
dilutive securities............................ 5,157 7,995 29,218
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Columbia/HCA common and common equivalent
shares......................................... 351,376 342,155 331,139
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Healthtrust:
Weighted average common shares outstanding...... 87,507 81,141 81,386
Dilutive effect of common stock equivalents and
other
dilutive securities............................ 2,674 2,988 2,096
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Healthtrust common and common equivalent shares. 90,181 84,129 83,482
Merger exchange ratio........................... 0.88 0.88 0.88
------- ------- -------
Adjusted Healthtrust common and common
equivalent shares.............................. 79,359 74,033 73,464
------- ------- -------
Pooling adjustment:
Healthtrust common shares held as an investment
by Columbia/HCA................................ - - (8,549)
Merger exchange ratio........................... 0.88 0.88 0.88
------- ------- -------
Pooling adjustment.............................. - - (7,523)
------- ------- -------
Shares used in earnings per common and
common equivalent share computations......... 430,735 416,188 397,080
======= ======= =======
Fully diluted earnings per common and common
equivalent share:
Income from continuing operations................. $ 2.16 $ 1.74 $ .74
Discontinued operations:
Income (loss) from operations of discontinued
health
plan segment................................... - .04 (.27)
Costs associated with discontinuance of health
plan segment................................... - - (.04)
Extraordinary loss on extinguishment of debt...... (.27) (.23) (.06)
Cumulative effect on prior years of a change in
accounting
for income taxes................................. - - .13
------- ------- -------
Net income.................................... $ 1.89 $ 1.55 $ .50
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