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 Six Months Ended July 28, July 30, July 28, July 30, 1996 1995 1996 1995 Net earnings applicable to common and common equivalent shares $ 270,174 $ 212,887 $ 465,193 $ 370,652 Tax effected interest expense, net of interest capitalized, attributable to 4.5% Convertible Subordinated Notes ------ ------ ------ 2,415 $ 270,174 $ 212,887 $ 465,193 $ 373,067 Shares: Weighted average number of common and common equivalent Shares assuming average market price 482,446 477,737 481,384 470,499 Additional shares from conversion of 4.5% Convertible Subordinated Notes ------ ------ ------ 6,925 482,446 477,737 481,384 477,424 Primary earnings per common and common equivalent share $ 0.560 $ 0.446 $ 0.966 $ 0.781 (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, were common stock equivalents prior to their conversion in March 1995. For the six months ended July 30, 1995 the Notes were dilutive and, accordingly, were 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 computations are 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 July 30, 1995, and the six month periods ended July 28, 1996 and July 30, 1995. Fully diluted earnings per share was not calculated for the three month period ending July 28, 1996, because the ending market price was lower than the average price.