Viacom Inc. and Subsidiaries
Computation of Net Earnings Per Share
Quarter ended September 30, Nine months ended September 30,
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1996 1995 1996 1995
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(In millions, except per share amounts)
Earnings:
Net earnings from continuing operations ........... $ 102.1 $ 77.5 $ 142.7 $ 151.3
Cumulative convertible preferred stock dividend
requirement .................................... 15.0 15.0 45.0 45.0
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Earnings from continuing operations attributable to
common stock ................................... 87.1 62.5 97.7 106.3
Earnings from discontinued operations, net of tax . -- 16.3 28.3 66.7
Gain on split-off of discontinued operations, net
of tax ......................................... 1,304.3 -- 1,304.3 --
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Net earnings attributable to common stock ......... $ 1,391.4 $ 78.8 $ 1,430.3 $ 173.0
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Primary Computation:
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Shares:
Weighted average number of common shares
outstanding .................................... 361.6 361.3 367.8 360.2
Common shares potentially issuable in connection
with:
Stock options and warrants ................... 2.4 8.8 3.8 8.5
Variable common rights (b) ................... -- 6.0 -- 6.1
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Weighted average common shares and common
share equivalents ............................ 364.0 376.1 371.6 374.8
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Net earnings per common share:
Net earnings from continuing operations ........... $ 0.24 $ 0.17 $ 0.26 $ 0.28
Earnings from discontinued operations, net of tax . -- 0.04 0.08 0.18
Gain on split-off of discontinued operations, net
of tax ......................................... 3.58 -- 3.51 --
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Net earnings ...................................... $ 3.82 $ 0.21 $ 3.85 $ 0.46
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Fully Diluted Computation:
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Shares:
Weighted average number of common shares
outstanding .................................. 361.6 361.3 367.8 360.2
Common shares potentially issuable in connection
with:
Stock options and warrants ................... 2.6 9.1 3.9 8.8
Preferred Stock (a) .......................... 17.2 -- 17.2 --
Variable common rights (b) ................... -- 6.0 -- 6.1
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Weighted average common shares and common
share equivalents ............................ 381.4 376.4 388.9 375.1
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Net earnings per common share:
Net earnings from continuing operations ........... $ 0.27 $ 0.17 $ 0.37 $ 0.28
Earnings from discontinued operations, net of tax . -- 0.04 0.07 0.18
Gain on split-off of discontinued operations, net
of tax ......................................... 3.42 -- 3.35 --
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Net earnings ...................................... $ 3.69 $ 0.21 $ 3.79 $ 0.46
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(a) For the third quarter and nine months ended September 30, 1996, the assumed
conversion of preferred stock had a dilutive effect on net earnings per
share, resulting from the gain on the Cable split-off, and therefore the
assumed conversion was included in the fully diluted earnings per share
calculation.
For the third quarter and nine months ended September 30, 1995, the assumed
conversion of preferred stock had an anti-dilutive effect on earnings per
share, resulting from the assumed reduction in Preferred Stock dividends,
and therefore was excluded from the fully diluted earnings per share
calculation.
(b) The variable common rights (the "VCRs") matured on September 29, 1995. The
Company issued approximately 6.1 million shares of Viacom Inc. Class B
Common Stock, or .022665 of a share of Viacom Inc. Class B Common Stock per
VCR, to settle its obligation under the VCRs.