EXHIBIT 11.1 CENDANT CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) YEAR ENDED DECEMBER 31, --------------------------------------------------------------- 1996 1995 1994 ------------------- ------------------- ------------------- FULLY FULLY FULLY PRIMARY DILUTED PRIMARY DILUTED PRIMARY DILUTED -------- -------- -------- -------- -------- -------- Net income $423,611 $423,611 $302,825 $302,825 $286,590 $286,590 Convertible debt interest and amortization of deferred loan costs, net of tax 4,500 5,788 4,505 6,720 -- 3,141 -------- -------- -------- -------- -------- -------- Net income, as adjusted $428,111 $429,399 $307,330 $309,545 $286,590 $289,731 ======== ======== ======== ======== ======== ======== Weighted average common shares outstanding 754,363 754,363 670,466 670,466 643,486 643,486 Incremental shares for outstanding stock options and warrants 40,099 42,096 44,294 51,193 39,549 41,788 Contingent shares -- -- -- -- 7,512 7,512 Convertible debt 19,830 24,127 19,864 27,045 -- 9,423 -------- -------- -------- -------- -------- -------- Weighted average common equivalent shares outstanding 814,292 820,586 734,624 748,704 690,547 702,209 ======== ======== ======== ======== ======== ======== Net income per share $ 0.53 $ 0.52 $ 0.42 $ 0.41 $ 0.42 $ 0.41 ======== ======== ======== ======== ======== ========