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
April 28, April 30,
1996 1995
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Net earnings applicable to common and common
equivalent shares $ 195,019 $ 157,765
Tax effected interest expense, net of
interest capitalized, attributable to
convertible subordinated notes --- 2,415
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$ 195,019 $ 160,180
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Shares:
Weighted average number of common and
common equivalent shares assuming average
market price 480,187 456,546
Additional shares from conversion of notes --- 20,774
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480,187 477,320
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Primary earnings per common and common
equivalent share $ 0.406 $ 0.336
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(1) Common equivalent shares represent shares granted under the Company s stock
option plans and an employee stock purchase plan.
(2) The Company's 4.5% Convertible Subordinated Notes, issued in 1992, were
common stock equivalents prior to their conversion in March 1995. For the
three months ended April 30, 1995, the Notes were dilutive and,
accordingly, are assumed to be converted as of the beginning of the
accounting period for purposes of calculating earnings per share.
(3) Fully diluted earnings per share is not presented because the impact of a
higher ending market price on weighted average common equivalent shares was
not material for the three month period ended April 28, 1996, and was not
calculated for the three month period ending April 30, 1995, because the
ending price of the stock was lower than the average price.