1 EXHIBIT 11.1 SOFTKEY INTERNATIONAL INC. STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) Three Months Ended Six Months Ended June 30, June 30, -------- -------- 1995 1994 1995 1994 ---- ---- ---- ---- Fully Diluted Net Income $ 7,954 $ 3,954 $ 17,973 10,245 Add: Interest on convertible debentures and notes -- 160 -- 392 Amortization of convertible debenture issue costs -- 35 -- 70 ----------- ----------- ----------- ---------- Adjusted net income $ 7,954 $ 4,149 $ 17,973 10,707 ----------- ----------- ----------- ---------- Weighted Average Common and Exchangeable Shares outstanding 21,782,000 18,133,000 21,402,000 18,133,000 Incremental shares calculated by the Treasury Stock Method applied to options, convertible debentures and warrants issued, using the greater of the closing and average fair value 1,230,000 2,095,000 1,311,000 1,946,000 ----------- ----------- ----------- ---------- Common and common share equivalents outstanding for purposes of calculating fully diluted earnings per share 23,012,000 20,228,000 22,713,000 20,079,000 =========== =========== =========== ========== Fully diluted earnings per share $ .35 $ .21 $ .79 $ .53 =========== =========== =========== ==========