Exhibit 11
Viacom Inc. and Subsidiaries
Computation of Net Earnings Per Share
Qtr. ended September 30, Nine months ended Sept. 30,
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1997 1996 1997 1996
---- ---- ---- ----
(In millions, except per share amounts)
Earnings:
Earnings (loss) from continuing operations .... $ 18.4 $ 108.6 $ (222.1) $ 153.5
Cumulative convertible perferred stock
dividend requirement ........................ 15.0 15.0 45.0 45.0
--------- --------- --------- ---------
Earnings (loss) from continuing operations
attributable to common stock ................ 3.4 93.6 (267.1) 108.5
Earnings (loss) from discontinued operations,
net of tax .................................... -- (6.5) 13.9 17.5
Gain on dispositions .......................... 415.9 1,304.3 428.8 1,304.3
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Net earnings .................................. $ 419.3 $ 1,391.4 $ 175.6 $ 1,430.3
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Primary Computation:
Shares:
Weighted average number of
common shares outstanding ................ 353.0 361.6 352.7 367.8
Common shares potentially issuable in
connection with:
Stock options and warrants(a) ............ 0.6 2.4 1.3 3.8
--------- --------- --------- ---------
Weighted average common shares and common
share equivalents ........................ 353.6 364.0 354.0 371.6
========= ========= ========= =========
Net earnings per common share:
Earnings (loss) from continuing operations $ 0.01 $ .26 $ (0.75) $ 0.29
Earnings (loss) from discontinued
operations, net of tax.................... -- (.02) 0.04 0.05
Gain on dispositions ..................... 1.18 3.58 1.21 3.51
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Net earnings ............................. $ 1.19 $ 3.82 $ 0.50 $ 3.85
========= ========= ========= =========
Fully Diluted Computation:
Shares:
Weighted average number of common shares
outstanding .............................. 353.0 361.6 352.7 367.8
Common shares potentially issuable in
connection with:
Stock options and warrants(a) ............ 0.8 2.6 1.4 3.9
Preferred Stock (b) ...................... 17.2 17.2 -- 17.2
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Weighted average common shares and common
share equivalents ........................ 371.0 381.4 354.1 388.9
========= ========= ========= =========
Net earnings per common share:
Earnings (loss) from continuing operations .. $ 0.05 $ .28 $ (0.75) $ 0.39
Earnings (loss) from discontinued
operations, net of tax....................... -- (.01) 0.04 0.04
Gain on dispositions ........................ 1.12 3.42 1.21 3.36
--------- --------- --------- ---------
Net earnings ................................ $ 1.17 $ 3.69 $ 0.50 $ 3.79
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(a) Common share equivalents had a dilutive effect on earnings from continuing
operations per share for the quarters ended September 30, 1997 and 1996
and the nine months ended September 30, 1996 and therefore were included
in the primary and fully diluted earnings per share computation. For the
nine months ended September 30, 1997 they had an anti-dilutive effect,
however, they were included in the primary and fully diluted earnings per
share computation as they had a dilutive effect on net earnings.
(b) For the nine months ended September 30, 1997, 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.