Exhibit 11.1 THE HOME DEPOT, INC. AND SUBSIDIARIES COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (In Millions, Except Per Share Data) Three Months Ended Nine Months Ended Nov 1, Nov 2, Nov 1, Nov 2, BASIC 1998 1997 1998 1997 Net Earnings Available to Common Shareholders $ 392 $ 236 $ 1,196 $ 853 Weighted Average Number of Common Shares Outstanding 1,471 1,461 1,469 1,457 Basic Earnings Per Share $ 0.27 $ 0.16 $ 0.81 $ 0.59 DILUTED Net Earnings Available to Common Shareholders $ 392 $ 236 $ 1,196 $ 853 Tax-Effected Interest Expense Attributable to 3.25% Convertible Subordinated Notes 5 6 17 18 Net Earnings Available to Common Shareholders Assuming Dilution $ 397 $ 242 $ 1,213 $ 871 Weighted Average Number of Common Shares Outstanding 1,471 1,461 1,469 1,457 Effect of Potentially Dilutive Securities: 3.25% Convertible Subordinated Notes 48 48 48 48 Employee Stock Plans 28 20 27 16 Weighted Average Number of Common Shares Outstanding Assuming Dilution 1,547 1,529 1,544 1,521 Diluted Earnings Per Share $ 0.26 $ 0.16 $ 0.79 $ 0.57 (1) Employee stock plans represent shares granted under the Company's employee stock purchase plan and stock option plans, as well as shares issued for deferred compensation stock plans. For fiscal years 1998 and 1997, shares issuable upon conversion of the Company's 3.25% Notes, issued in October 1996, were included in weighted average shares assuming dilution for purposes of calculating diluted earnings per share. To calculate diluted earnings per share, net earnings are adjusted for tax-effected net interest and issue costs on the 3.25% Notes and divided by weighted average shares assuming dilution.