Exhibit 11.1 INTEL CORPORATION COMPUTATION OF EARNINGS PER SHARE (In millions, except per share amounts) Three Months Ended ------------------ March 29, March 30, 1997 1996 -------- --------- PRIMARY SHARES CALCULATION: Reconciliation of weighted average number of shares outstanding to amount used in primary earnings per share computation: Weighted average number of shares outstanding 819 822 Add shares issuable from assumed exercise of options and warrants 81 58 ------ ------ Weighted average number of shares outstanding as adjusted 900 880 ====== ====== FULLY DILUTED SHARES CALCULATION: Reconciliation of weighted average number of shares outstanding to amount used in fully diluted earnings per share computation: Weighted average number of shares outstanding 819 822 Add shares issuable from assumed exercise of options and warrants 81 58 ------ ------ Weighted average number of shares outstanding as adjusted 900 880 ====== ====== NET INCOME $1,983 $ 894 ====== ====== PRIMARY EARNINGS PER SHARE $ 2.20 $ 1.02 ====== ====== FULLY DILUTED EARNINGS PER SHARE $ 2.20 $ 1.02 ====== ====== Earnings per common equivalent share presented on the face of the statements of income represent primary earnings per share. Dual presentation of primary and fully diluted earnings per share has not been made on the statement of income because the differences are insignificant.