FOUNDATION HEALTH SYSTEMS, INC.
EARNINGS PER SHARE COMPUTATION
UTILIZING THE TREASURY STOCK METHOD
EXHIBIT 11.1
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER
QUARTER ENDED SEPTEMBER 30, 30,
---------------------------- ----------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
PRIMARY
Shares outstanding at beginning of period............ 121,186,734 124,793,756 125,207,484 123,059,358
Weighted average shares issued (repurchased) during
period.............................................. 94,198 163,680 (1,260,774) 1,179,155
Dilutive shares contingently issuable upon exercise
of stock options, net of shares assumed to have been
purchased (at average market price) for treasury
with assumed proceeds from exercise................. 626,497 262,075 501,620 603,571
------------- ------------- ------------- -------------
Weighted average shares outstanding(A)............... 121,907,429 125,219,511 124,448,330 124,842,084
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Income (loss) from continuing operations(B).......... $ 68,901 $ 57,518 $ (72,746) $ 183,373
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Income from discontinued operations (C).............. -- -- -- 2,910
------------- ------------- ------------- -------------
Net income (loss)(D)................................. $ 68,901 $ 57,518 $ (72,746) $ 186,283
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Earnings (loss) per share:
Continuing operations(B/A)......................... $ 0.57 $ 0.46 $ (0.58) $ 1.47
Discontinued operations(C/A)....................... -- -- -- 0.02
------------- ------------- ------------- -------------
Net earnings(D/A).................................... $ 0.57 $ 0.46 $ (0.58) $ 1.49
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
FULLY DILUTED
Shares outstanding at beginning of period............ 121,186,734 124,793,756 125,207,484 123,059,358
Weighted average shares issued (repurchased) during
period............................................. 94,198 163,680 (1,260,774) 1,179,155
Dilutive shares contingently issuable upon exercise
of stock options, net of shares assumed to have
been purchased (at average market price) for
treasury with assumed proceeds from exercise....... 656,182 422,198 698,954 601,327
------------- ------------- ------------- -------------
Weighted average shares outstanding(A)............... 121,937,114 125,379,634 124,645,664 124,839,840
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Income (loss) from continuing operations(B).......... $ 68,901 $ 57,518 $ (72,746) $ 183,373
Income from discontinued operations(C)............... -- -- -- 2,910
------------- ------------- ------------- -------------
Net income (loss)(D)................................. $ 68,901 $ 57,518 $ (72,746) $ 186,283
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Earnings (loss) per share:
Continuing operations(B/A)......................... $ 0.57 $ 0.46 $ (0.58) $ 1.47
Discontinued operations(C/A)....................... -- -- -- 0.02
------------- ------------- ------------- -------------
Net earnings(D/A).................................... $ 0.57 $ 0.46 $ (0.58) $ 1.49
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------