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 Six Months Ended August 1, August 2, August 1, August2, 1999 1998 1999 1998 BASIC Net Earnings Available to Common Shareholders $ 679 $ 467 $ 1,169 $ 804 Weighted Average Number of Common Shares Outstanding 1,482 1,470 1,480 1,468 Basic Earnings Per Share $ 0.46 $ 0.32 $ 0.79 $ 0.55 DILUTED Net Earnings Available to Common Shareholders $ 679 $ 467 $ 1,169 $ 804 Tax-Effected Interest Expense Attributable to 3.25% Convertible Subordinated Notes 5 6 10 12 Net Earnings Available to Common Shareholders Assuming Dilution $ 684 $ 473 $ 1,179 $ 816 Weighted Average Number of Common Shares Outstanding 1,482 1,470 1,480 1,468 Effect of Potentially Dilutive Securities: 3.25% Convertible Subordinated Notes 48 48 48 48 Employee Stock Plans 29 28 30 26 Weighted Average Number of Common Shares Outstanding Assuming Dilution 1,559 1,546 1,558 1,542 Diluted Earnings Per Share $ 0.44 $ 0.31 $ 0.76 $ 0.53 (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.