EXHIBIT 11.4 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED SEPTEMBER 30, ----------------------------------------- 1997 1996 ------------------- ------------------- FULLY FULLY PRIMARY DILUTED PRIMARY DILUTED -------- -------- -------- -------- Net income $248,264 $248,264 $ 68,466 $ 68,466 Convertible debt interest and amortization of deferred loan costs, net of tax 5,539 5,771 1,134 1,586 -------- -------- -------- -------- Net income, as adjusted $253,803 $254,035 $ 69,600 $ 70,052 ======== ======== ======== ======== Weighted average common shares outstanding 807,447 807,447 773,519 773,519 Incremental shares for outstanding stock options and warrants 34,642 43,529 41,080 41,975 Convertible debt 45,972 48,471 19,842 22,989 -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding 888,061 899,447 834,441 838,483 ======== ======== ======== ======== Net income per share $ 0.29 $ 0.28 $ 0.08 $ 0.08 ======== ======== ======== ======== NINE MONTHS ENDED SEPTEMBER 30, ----------------------------------------- 1997 1996 ------------------- ------------------- FULLY FULLY PRIMARY DILUTED PRIMARY DILUTED -------- -------- -------- -------- Net income $400,694 $400,694 $265,504 $265,504 Convertible debt interest and amortization of deferred loan costs, net of tax 10,648 11,328 3,369 4,812 -------- -------- -------- -------- Net income, as adjusted $411,342 $412,022 $268,873 $270,316 ======== ======== ======== ======== Weighted average common shares outstanding 804,338 804,338 740,557 740,557 Incremental shares for outstanding stock options and warrants 33,677 33,966 40,317 42,528 Convertible debt 36,364 39,115 19,842 24,522 -------- -------- -------- -------- Weighted average common and common equivalent shares outstanding 874,379 877,419 800,716 807,607 ======== ======== ======== ======== Net income per share $ 0.47 $ 0.47 $ 0.34 $ 0.33 ======== ======== ======== ========