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 Oct. 27, Oct. 29, Oct. 27, Oct. 29, 1996 1995 1996 1995 Net earnings applicable to common and common equivalent shares $ 221,371 $ 175,473 $ 686,564 $ 546,125 Tax effected interest expense, net of interest capitalized, attributable to convertible subordinated notes 1,659 --- 1,659 2,415 $ 223,030 $ 175,473 $ 688,223 $ 548,540 Shares: Weighted average number of common and common equivalent shares assuming average market price 483,362 477,671 482,056 470,544 Additional shares from conversion of notes 4,563 --- 1,521 6,925 487,925 477,671 483,577 477,469 Primary earnings per common and common equivalent share $ 0.457 $ 0.367 $ 1.423 $ 1.149 (1) Common equivalent shares represent shares granted under two stock option plans for the three months ended October 27, 1996, and three stock option plans and an employee stock purchase plan for all other periods presented. (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 nine months ended October 29, 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) The Company's 3.25% Convertible Subordinated Notes issued on October 2, 1996, are common stock equivalents. For the three and nine months ended October 27, 1996, the notes were dilutive and, accordingly, were assumed to be converted upon the date of issuance for purposes of calculating earnings per share. (4) 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 nine months ended October 27, 1996, and the three and nine months ended October 29, 1995. Fully diluted earnings per share was not calculated for the three month period ending October 27, 1996, because the ending market price was lower than the average price.