Exhibit 11.1 THE HOME DEPOT, INC. AND SUBSIDIARIES Computation of Earnings Per Common and Common Equivalent Share (In Thousands, Except Per Share Data) Three Months Ended Nine Months Ended October 30, October 31, October 30, October 31, 1994 1993 1994 1993 Primary Net earnings applicable to common and common equivalent shares $140,774 $103,417 $458,522 $344,721 Tax effected interest expense, net of interest capitalized, attributable to convertible subordinated notes 5,606 --- 15,946 --- $146,380 $103,417 $474,468 $344,721 Shares: Weighted average number of common and common equivalent shares assuming average market price 455,301 452,925 454,793 452,878 Additional shares from conversion of notes 20,774 --- 20,774 --- 476,075 452,925 475,567 452,878 Primary earnings per common and common equivalent share $ .307 $ .228 $ .998 $ .761 Fully Diluted Net earnings applicable to common and common equivalent shares $140,774 $458,522 Tax effected interest expense, net of interest capitalized, attributable to convertible subordinated notes 5,606 15,946 $146,380 $474,468 Shares: Weighted average number of common and common equivalent shares assuming ending market price for period 455,575 455,131 Additional shares from conversion of notes 20,774 20,774 476,349 475,905 Fully diluted earnings per common and common equivalent share $ .307 $ .997 (1) Common equivalent shares represent shares granted under three stock option plans and an employee stock purchase plan. (2) The Company's 4.5% Convertible Subordinated Notes, issued in 1992, are common stock equivalents. For the three and nine month periods ended October 31, 1993, shares issuable upon their conversion were anti-dilutive and, therefore, were excluded from the earnings per share calculation. For the three and nine month periods ended October 30, 1994, the Notes are dilutive and, accordingly, are assumed to be converted as of the beginning of the accounting periods for purposes of calculating earnings per share. (3) For the three and nine month periods ended October 31, 1993, the ending market price was lower than the average market price which would result in an anti-dilutive calculation of earnings per share and therefore was excluded from the fully dilutive calculation.