Viacom Inc. and Subsidiaries
Computation of Net Earnings Per Share
Year ended December 31,
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1996 1995 1994
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(In millions, except per share amounts)
Earnings:
Earnings from continuing operations ....................... $ 170.7 $ 150.5 $ 77.0
Cumulative convertible preferred stock dividend requirement 60.0 60.0 75.0
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Earnings from continuing operations attributable to
common stock ........................................... 110.7 90.5 2.0
Earnings (loss) from discontinued
operations, net of tax ................................. (52.0) 72.0 33.0
Net gain on discontinued operations, net of tax............ 1,129.2 -- --
Extraordinary loss, net of tax ............................ -- -- (20.4)
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Net earnings .............................................. $ 1,187.9 $ 162.5 $ 14.6
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Primary Computation:
Shares:
Weighted average number of common shares outstanding 364.0 362.4 207.6
Common shares potentially issuable in connection with:
Stock options and warrants .......................... 3.4 8.3 2.6
Variable common rights (1) .......................... -- 4.4 4.0
Contingent value rights (2) ......................... -- -- 5.8
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Weighted average common shares and common
share equivalents ................................... 367.4 375.1 220.0
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Net earnings per common share:
Earnings from continuing operations ....................... $ 0.30 $ 0.24 $ .01
Earnings (loss) from discontinued operations,
net of tax .............................................. (0.14) 0.19 .15
Net gain on discontinued operations, net of tax ........... 3.07 -- --
Extraordinary loss, net of tax ............................ -- -- (.09)
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Net earnings .............................................. $ 3.23 $ 0.43 $ .07
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Fully Diluted Computation:
Shares:
Weighted average number of common shares
outstanding ......................................... 364.0 362.4 207.6
Common shares potentially issuable in connection
with:
Stock options and warrants .......................... 3.5 8.6 3.0
Variable common rights (1) .......................... -- 4.5 4.0
Contingent value rights (2) ......................... -- -- 5.8
Preferred Stock (3) ................................. -- -- --
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Weighted average common shares and common
share equivalents ................................... 367.5 375.5 220.4
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Net earnings per common share:
Earnings from continuing operations ....................... $ 0.30 $ 0.24 $ 0.1
Earnings (loss) from discontinued operations,
net of tax ............................................. (0.14) 0.19 .15
Net gain on discontinued operations, net of tax ........... 3.07 -- --
Extraordinary loss, net of tax ............................ -- -- (0.09)
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Net earnings .............................................. $ 3.23 $ 0.43 $ 0.07
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(1) 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.
(2) The contingent value rights (the "CVRs") matured on July 7, 1995. The
Company paid approximately $81.9 million in cash of approximately $1.44
pen CVR to settle its obligation.
(3) For the years ended December 31, 1996, 1995, and 1994, 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.