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EXHIBIT 11.1
VALERO ENERGY CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
Year Ended December 31,
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1998 1997 1996
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COMPUTATION OF BASIC EARNINGS PER SHARE:
Income (loss) from continuing operations.............................. $ (47,291) $ 111,768 $ 22,472
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Income (loss) from discontinued operations,
net of income taxes................................................ $ -- $ (15,672) $ 50,229
Less: Preferred stock dividend requirements
and redemption premium............................................. -- (4,592) (11,327)
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Income (loss) from discontinued operations
applicable to common stock......................................... $ -- $ (20,264) $ 38,902
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Weighted average number of shares of
common stock outstanding........................................... 56,077,671 51,662,449 43,926,026
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Earnings (loss) per share:
Continuing operations.............................................. $ (.84) $ 2.16 $ .51
Discontinued operations............................................ -- (.39) .89
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Total........................................................... $ (.84) $ 1.77 $ 1.40
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COMPUTATION OF EARNINGS PER SHARE
ASSUMING DILUTION:
Income (loss) from continuing operations assuming dilution............ $ (47,291) $ 111,768 $ 22,472
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Income (loss) from discontinued operations, net of
income taxes....................................................... $ -- $ (15,672) $ 50,229
Less: Preferred stock dividend requirements
and redemption premium............................................. -- (4,592) (11,327)
Add: Reduction of preferred stock dividends applicable
to the assumed conversion of Convertible Preferred Stock
at the beginning of the period..................................... -- 4,522 10,781
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Income (loss) from discontinued operations applicable to
common stock assuming full dilution ............................... $ -- $ (15,742) $ 49,683
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Weighted average number of shares of
common stock outstanding........................................... 56,077,671 51,662,449 43,926,026
Effect of dilutive securities:
Stock options...................................................... --(a) 880,864 424,986
Performance awards................................................. --(a) 91,151 44,050
Convertible preferred stock........................................ -- 2,494,905 6,381,798
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Weighted average number of shares of
common stock outstanding assuming dilution.......................... 56,077,671 55,129,369 50,776,860
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Earnings (loss) per share - assuming dilution:
Continuing operations.............................................. $ (.84) $ 2.03 $ .44
Discontinued operations............................................ -- (.29) .98
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Total........................................................... $ (.84) $ 1.74 $ 1.42
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(a) Various stock options and performance awards granted to employees in
connection with the Company's stock compensation plans were outstanding
during 1998 but were not included in the computation of diluted earnings
per share from continuing operations for such period because the effect
would have been antidilutive.