EXHIBIT 11.3 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) FOR THE THREE MONTHS ENDED JUNE 30, ----------------------------------------------- 1997 1996 ---------------------- --------------------- FULLY FULLY PRIMARY DILUTED PRIMARY DILUTED --------- --------- --------- --------- Net income (loss) $ (13,437) $ (13,437) $ 101,064 $ 101,064 Convertible debt interest and amortization of deferred loan costs, net of tax -- -- 1,122 1,644 --------- --------- --------- --------- Net income (loss), as adjusted $ (13,437) $ (13,437) $ 102,186 $ 102,708 ========= ========= ========= ========= Weighted average common shares outstanding 804,246 804,246 735,841 735,841 Incremental shares for outstanding stock options and warrants -- -- 41,995 43,457 Convertible debt -- -- 19,842 24,186 --------- --------- --------- --------- Weighted average common and common equivalent shares outstanding 804,246 804,246 797,678 803,484 ========= ========= ========= ========= Net income (loss) per share $ (0.02) $ (0.02) $ 0.13 $ 0.13 ========= ========= ========= ========= FOR THE SIX MONTHS ENDED JUNE 30, ----------------------------------------------- 1997 1996 ---------------------- --------------------- FULLY FULLY PRIMARY DILUTED PRIMARY DILUTED --------- --------- --------- --------- Net income $ 152,432 $ 152,432 $ 197,038 $ 197,038 Convertible debt interest and amortization of deferred loan costs, net of tax 7,028 7,476 2,244 3,235 --------- --------- --------- --------- Net income, as adjusted $ 159,460 $ 159,908 $ 199,282 $ 200,273 ========= ========= ========= ========= Weighted average common shares outstanding 803,188 803,188 723,929 723,929 Incremental shares for outstanding stock options and warrants 36,016 36,034 40,335 43,476 Convertible debt 36,292 39,169 19,842 25,289 --------- --------- --------- --------- Weighted average common and common equivalent shares outstanding 875,496 878,391 784,106 792,694 ========= ========= ========= ========= Net income per share $ 0.18 $ 0.18 $ 0.25 $ 0.25 ========= ========= ========= =========