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
May 4, April 28,
1997 1996
Net earnings applicable to
common and common equivalent
shares $ 258,834 $ 195,019
Tax effected interest expense, net
of interest capitalized, attributable
to convertible subordinated notes 5,842 ------
$ 264,676 $ 195,019
Shares:
Weighted average number of
common and common equivalent
shares assuming average market
price 487,247 480,187
Additional shares from assumed
conversion of convertible
subordinated notes 15,971 -----
503,218 480,187
Primary earnings per common and
common equivalent share $ .526 $ .406
(1) Common equivalent shares represent shares granted under the
Company's employee stock purchase plan and stock option plans
for the three month periods ended May 4,1997, and April 28, 1996.
(2) The Company's 3.25% Convertible Subordinated Notes issued on
October 2, 1996, are common stock equivalents. For the three
months ended May 4, 1997 the notes were dilutive and, accordingly,
were assumed to be converted at 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 periods ended May 4, 1997 and April 28, 1996.