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 Primary November 2, October 27, November 2, October 27, 1997 1996 1997 1996 Net Earnings Applicable to Common and Common Equivalent Shares $ 235,878 $ 221,371 $ 852,590 $ 686,564 Tax Effected Interest Expense, Net of Interest Capitalized, Attributable to 3.25% Convertible Subordinated Notes 5,845 1,659 17,531 1,659 $ 241,723 $ 223,030 $ 870,121 $ 688,223 Shares: Weighted Average Number of Common and Common Equivalent Shares Assuming the higher of the Ending or Average Market Price for Period 741,604 725,043 739,750 723,084 Additional Shares from Assumed Conversion of 3.25% Convertible Subordinated Notes 23,956 6,845 23,956 2,282 765,560 731,888 763,706 725,366 Primary Earnings per Common and Common Equivalent Share $ 0.316 $ 0.305 $ 1.139 $ 0.949 (1) Common equivalent shares represent shares granted under the Company's employee stock purchase plan and stock option plans for the three and nine month periods ended November 2, 1997 and October 27, 1996. All periods have been adjusted to reflect the three-for-two stock split in July 1997. (2) Primary Earnings per Common and Common Equivalent Shares excluding the $104,000,000 non-recurring charge were $.399 for the three months and $1.223 for the nine months ended November 2, 1997. (3) The Company's 3.25% Convertible Subordinated Notes issued on October 2, 1996, are common stock equivalents. For the three and nine month periods ended November 2, 1997 and October 27, 1996, 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.