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EXHIBIT 11.1
DETROIT DIESEL CORPORATION
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
December 31, December 31, December 31,
1996 1995 1994
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Primary net income per share:
Net income $ 3,846,000 $ 40,062,000 $ 36,102,000
Pro rata shares:
Common stock outstanding 24,697,316 24,676,696 22,206,758
Common stock equivalents 344(1) 16,722(2) 786,276(3)
Diesel Project Development, Inc. - - 760,896(4)
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Weighted average number of shares outstanding 24,697,660 24,693,418 23,753,930
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Primary net income per share $0.16 $1.62 $1.52
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Fully diluted net income per share:
Net income $ 3,846,000 $ 40,062,000 $ 36,102,000
Pro rata shares:
Common stock outstanding 24,697,316 24,676,696 22,206,758
Common stock equivalents 1,087 (1) 16,722(2) 786,276(3)
Diesel Project Development, Inc. - - 760,896(4)
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Weighted average number of shares outstanding 24,698,403 24,693,418 23,753,930
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Fully diluted net income per share $0.16 $1.62 $1.52
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(1) Represents the weighted average dilutive effect of 305,000, 108,000 and
5,000 stock options at $20.00, $23.75 and $18.00 per share, respectively,
calculated using the treasury stock method.
(2) Represents the weighted average dilutive effect of 339,070 and 114,000 stock
options exercisable at $20.00 and $23.75 per share, respectively, calculated
using the treasury stock method.
(3) Represents the weighted average dilutive effect of options to acquire
339,070 shares of common stock at the IPO price of $20.00 per share, plus
the weighted average dilutive effect through September 1994 of options to
acquire 73,842 shares of restricted stock at the IPO price of $20.00 per
share, plus the weighted average dilutive effect through September 1994 of
rights to acquire 2,415,019 shares of common stock at 80% of the IPO price,
or $16.00 per share, calculated using the treasury stock method.
(4) Represents the weighted average number of shares issued to Diesel Project
Development, Inc. in September 1994, upon exercise of rights to acquire
2,415,019 shares of common stock at 80% of the IPO price, or $16.00 per
share.
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