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EXHIBIT 11
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
AND COMMON EQUIVALENT SHARE
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
Year Ended December 31,
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1996 1995 1994
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Primary Earnings Per Share:
(1) Weighted average shares of common stock
outstanding................................................. 244,443,110 247,706,457 245,706,746
(2) Effect of issuance of shares from
assumed exercise of stock options
(treasury stock method)..................................... 23,878 47,098 (79,048)
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(3) Weighted average shares........................................ 244,466,988 247,753,555 245,627,698
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(4) Net income..................................................... $ 404,944 $ 1,105,524 $ 399,261
(5) Primary earnings per share
(line 4/line 3)............................................. $ 1.66 $ 4.46 $ 1.62
Fully Diluted Earnings Per Share:
(6) Weighted average shares per computation
on line 3 above............................................. 244,466,988 247,753,555 245,627,698
(7) Shares applicable to options included
on line 2 above............................................. (23,878) (47,098) 79,048
(8) Dilutive effect of stock options (treasury stock method)
based on higher of the average price for the year or
year-end price of $22.88, $24.25 and $18.00 for 1996,
1995 and 1994, respectively.................................... 23,878 52,730 (79,048)
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(9) Weighted average shares........................................ 244,466,988 247,759,187 245,627,698
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(10) Net income..................................................... $ 404,944 $ 1,105,524 $ 399,261
(11) Fully diluted earnings per share
(line 10/line 9)............................................ $ 1.66 $ 4.46 $ 1.62
Notes:
These calculations are submitted in accordance with Regulation S-K item
601(b)(11) although submission is not required for financial presentation
disclosure as provided in footnote 2 to paragraph 14 of Accounting Principles
Board (APB) Opinion No. 15 because the 3 percent dilutive test is not met.
The calculations for year ended December 31, 1994 are submitted in accordance
with Regulation S-K item 601(b)(11) although they are contrary to paragraphs 30
and 40 of APB No. 15 because they produce anti-dilutive results.
All share amounts reflect the two-for-one stock split, effective December 1995.