The Home Depot, Inc. (HD) 10-K 2010 FY Annual report

Exhibit 12

THE HOME DEPOT, INC. AND SUBSIDIARIES

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(amounts in millions, except ratio data)

	Fiscal Year(1)
	2006			2007			2008			2009			2010
Earnings From Continuing Operations Before Income Taxes	$	8,502		$	6,620		$	3,590		$	3,982		$	5,273
Less: Capitalized Interest		(47	)		(46	)		(20	)		(4	)		(3	)
Add:
Portion of Rental Expense under operating leases deemed to be the equivalent of interest		257			279			286			277			278
Interest Expense		437			741			644			680			533
Adjusted Earnings	$	9,149		$	7,594		$	4,500		$	4,935		$	6,081
Fixed Charges:
Interest Expense	$	437		$	741		$	644		$	680		$	533
Portion of Rental Expense under operating leases deemed to be the equivalent of interest		257			279			286			277			278
Total Fixed Charges	$	694		$	1,020		$	930		$	957		$	811
Ratio of Earnings to Fixed Charges(2)		13.2x			7.4x			4.8x			5.2x			7.5x

(1) Fiscal years 2010, 2009, 2008, 2007 and 2006 refer to the fiscal years ended January 30, 2011, January 31, 2010, February 1, 2009, February 3, 2008 and January 28, 2007, respectively. Fiscal year 2007 includes 53 weeks; all other fiscal years reported include 52 weeks.

(2) For purposes of computing the ratios of earnings to fixed charges, “earnings” consist of earnings from continuing operations before income taxes plus fixed charges, excluding capitalized interest. “Fixed charges” consist of interest incurred on indebtedness including capitalized interest, amortization of debt expenses and the portion of rental expense under operating leases deemed to be the equivalent of interest. The ratios of earnings to fixed charges are calculated as follows:

(earnings from continuing operations before income taxes) + (fixed charges) – (capitalized interest)

(fixed charges)