EXHIBIT 11.1 COMPUTATION OF EARNINGS PER SHARE TEXAS INDUSTRIES, INC. AND SUBSIDIARIES Year Ended May 31, - -------------------------------------------------------------------------------- In thousands except per share 1996 1995 1994 - -------------------------------------------------------------------------------- AVERAGE SHARES OUTSTANDING Primary Average shares outstanding 11,054 12,253 11,208 Stock options and other equivalents - treasury stock method using average market prices 317 173 119 ------- ------- ------- TOTALS 11,371 12,426 11,327 ======= ======= ======= Fully diluted Average common shares outstanding 11,054 12,253 11,208 Stock options and other equivalents - treasury stock method using end of quarter market price if higher than average 347 173 139 Assumed conversion of 9% convertible subordinated debentures -- -- 1,251 ------- ------- ------- TOTALS 11,401 12,426 12,598 ======= ======= ======= INCOME APPLICABLE TO COMMON STOCK Primary Net income $79,954 $48,017 $25,751 Adjustments Dividend on preferred stock (28) (30) (30) Contingent price amortization 233 233 233 ------- ------- ------- NET INCOME $80,159 $48,220 $25,954 ======= ======= ======= Fully diluted Net income $79,954 $48,017 $25,751 Adjustments 9% convertible subordinated debenture interest, net of federal income tax effect -- -- 1,728 Dividend on preferred stock (28) (30) (30) Contingent price amortization 233 233 233 ------- ------- ------- NET INCOME $80,159 $48,220 $27,682 ======= ======= ======= PER SHARE Primary Net income per common share and common equivalent share $ 7.05 $ 3.88 $ 2.29 ======= ======= ======= Fully diluted Net income per common share and dilutive common equivalent share $ 7.03 $ 3.88 $ 2.20* ======= ======= ======= *Not separately disclosed on the Consolidated Statements of Income due to 9% convertible subordinated debentures being converted in April 1994. -40-