EXHIBIT 11
HILTON HOTELS CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
1997 1996 1995
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BASIC
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Income (in millions)
Before extraordinary item.................................. $ 250 $ 156 $ 173
Deduct dividends on preferred shares....................... (13) -- --
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Income applicable to common stock before extraordinary
item..................................................... 237 156 173
Extraordinary item, net.................................... -- (74) --
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Income applicable to common stock.......................... $ 237 $ 82 $ 173
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Shares
Weighted average common shares............................. 249,723,000 197,338,000 193,015,000
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Basic earnings per common share
Income before extraordinary item........................... $ 0.95 $ 0.79 $ 0.90
Extraordinary item......................................... -- (0.38) --
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Net income................................................. $ 0.95 $ 0.41 $ 0.90
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DILUTED
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Income (in millions)
Before extraordinary item.................................. $ 250 $ 156 $ 173
Add after tax interest applicable to 5% convertible
notes.................................................... 15 9 --
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Before extraordinary item, as adjusted..................... 265 165 173
Extraordinary item, net.................................... -- (74) --
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Net income................................................. $ 265 $ 91 $ 173
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Shares
Weighted average common shares - basic..................... 249,723,000 197,338,000 193,015,000
Assuming conversion of preferred stock..................... 13,645,000 477,000 --
Assuming conversion of 5% convertible notes................ 15,489,000 9,785,000 --
Dilutive effect of assumed option exercises (as determined
by the application of the treasury stock method)......... 2,374,000 1,756,000 1,643,000
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Common and common equivalent shares as adjusted............ 281,231,000 209,356,000 194,658,000
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Diluted earnings per common share
Income before extraordinary item........................... $ 0.94 $ 0.79 $ 0.89
Extraordinary item......................................... -- (0.35) --
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Net income................................................. $ 0.94 $ 0.43(1) $ 0.89
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(1) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 13 of Statement of Financial
Accounting Standards No. 128 because it produces an anti-dilutive result.
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