1 Exhibit 11.1 SERVICE CORPORATION INTERNATIONAL COMPUTATION OF EARNINGS PER SHARE Three Months Ended March 31, 1996 1995 - --------------------------------------------------------------------------------------------------- (Thousands, except per share amounts) PRIMARY: Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 71,897 $ 47,380 ========== ========= Average number of common shares outstanding . . . . . . . . 117,447 95,750 Common stock equivalents applicable to options outstanding resulting from application of the "treasury stock method" using average stock price . . . . . . . . . . . . . . . . 2,291 722 --------- ---------- Average common and common equivalent shares used in earnings per share . . . . . . . . . . . . . . . 119,738 96,472 ========= ========== Primary Earnings Per Common Share: Net income . . . . . . . . . . . . . . . . . . . . . . . . $ .60 $ .49 ========= ========== FULLY DILUTED: Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 71,897 $ 47,380 Add after tax interest expense applicable to convertible debentures . . . . . . . . . . . . . . . . . . 1,941 3,741 --------- ---------- $ 73,838 $ 51,121 ========= ========== Average number of common shares outstanding . . . . . . . . . 117,447 95,750 Common stock equivalents applicable to options outstanding resulting from application of the "treasury stock method" using end of period stock price (if greater than average stock price for period) . . . . . . . . . . . . . . . . . 2,572 722 Assuming conversion of convertible debentures . . . . . . . . 6,834 15,795 --------- ---------- Average shares used in fully diluted earnings per share . . . 126,853 112,267 ========= ========== Fully Diluted Earnings Per Common Share: Net income . . . . . . . . . . . . . . . . . . . . . . . . $ .58 $ .46 ========= ==========