1 EXHIBIT 11.1 SERVICE CORPORATION INTERNATIONAL COMPUTATION OF EARNINGS PER SHARE Years Ended December 31, -------------------------------------- 1996 1995 1994 -------- -------- -------- (Thousands, except per share amounts) PRIMARY: Net income........................... $265,298 $183,588 $131,045 ======== ======== ======== Average number of common shares outstanding......................... 235,432 201,597 173,018 Common stock equivalents applicable to options outstanding resulting from application of the "treasury stock method" using average stock price............................... 5,746 2,550 834 -------- -------- -------- Average common and common equivalent shares used in earnings per share... 241,178 204,147 173,852 ======== ======== ======== Primary Earnings Per Common Share: Net income.......................... $ 1.10 $ .90 $ .75 ======== ======== ======== FULLY DILUTED: Net income........................... $265,298 $183,588 $131,045 Add after tax interest expense applicable to convertible debentures.......................... 8,077 13,548 8,501 -------- -------- -------- $273,375 $197,136 $139,546 ======== ======== ======== Average number of common shares outstanding......................... 235,432 201,597 173,018 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)............. 6,091 3,038 984 Assuming conversion of convertible debentures.......................... 13,662 26,670 20,814 -------- -------- -------- Average shares used in fully diluted earnings per share................. 255,185 231,305 194,816 ======== ======== ======== Fully Diluted Earnings Per Common Share: Net income........................ $ 1.07 $ .85 $ .72 ======== ======== ========