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EXHIBIT 11
THE HOME DEPOT, INC.
Computation of Primary and Fully Diluted Earnings
Per Common and Common Equivalent Share
(In thousands, except per share amounts)
Fiscal Year Ended
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2-2-97 1-28-96 1-29-95
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Primary
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Net earnings applicable to common and equivalent shares $937,739 $731,523 $604,501
Tax affected interest expense, net of interest
capitalized attributable to convertible subordinated
notes 7,951 2,415 2,580
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$945,690 $733,938 $627,081
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Shares:
Weighted average number of common and common
equivalent shares assuming average market price for
period 482,414 477,977 455,173
Additional shares assuming conversion of the notes 5,338 --- 20,774
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487,752 477,977 475,947
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Primary earnings
per common and common equivalent share $ 1.94 $ 1.54 $ 1.32
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(1) Common equivalent shares represent shares granted under three stock
option plans and an employee stock
purchase plan.
(2) The Company's 4-1/2% Convertible Subordinated Notes, issued in 1992, were
common stock equivalents prior to conversion in March, 1995. For fiscal
1994, the 4-1/2% Notes were dilutive and are assumed to be converted as of
the beginning of the accounting period for purposes of calculating primary
earnings per share.
(3) The Company's 3-1/4% Convertible Subordinated Notes issued on October 2,
1996, are common stock equivalents. For fiscal year 1996, the 3-1/4%
Notes were dilutive and are assumed to be converted as of the beginning of
the accounting period for purposes of calculating earnings per share.
(4) Fully diluted earnings per share was not calculated for fiscal year 1996
because the ending market price was lower than the average market price
for the year. Fully diluted earnings per share computations are not
presented for fiscal years 1995 and 1994 because the impact of a higher
ending market price on weighted average common equivalent shares was not
material.