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 May 2, May 3, 1999 1998 BASIC Net Earnings Available to Common Shareholders $ 489 $ 337 Weighted Average Number of Common Shares Outstanding 1,478 1,466 Basic Earnings Per Share $ 0.33 $ 0.23 DILUTED Net Earnings Available to Common Shareholders $ 489 $ 337 Tax Effected Interest Expense Attributable to 3.25% Convertible Subordinated Notes 5 6 Net Earnings Available to Common Shareholders Assuming Dilution $ 494 $ 343 Weighted Average Number of Common Shares Outstanding 1,478 1,466 Effect of Potentially Dilutive Securities: 3.25% Convertible Subordinated Notes 48 48 Employee Stock Plans 32 25 Weighted Average Number of Common Shares Outstanding Assuming Dilution 1,558 1,539 Diluted Earnings Per Share $ 0.32 $ 0.22 (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 1999 and 1998, 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.