Exhibit 11.1 INTEL CORPORATION COMPUTATION OF EARNINGS PER SHARE (2) (In millions, except per share amounts) Three Months Ended Nine Months Ended ------------------ ----------------- Sept. 27, Sept. 28, Sept. 27, Sept. 28, 1997 1996 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 1,635 1,644 1,636 1,645 Add shares issuable from assumed exercise of options and warrants 162 126 162 124 ------ ------ ------ ------ Weighted average number of shares outstanding as adjusted 1,797 1,770 1,798 1,769 ====== ====== ====== ====== 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 1,635 1,644 1,636 1,645 Add shares issuable from assumed exercise of options and warrants 164 142 164 142 ------ ------ ------ ------ Weighted average number of shares outstanding as adjusted 1,799 1,786 1,800 1,787 ====== ====== ====== ====== NET INCOME $1,574 $1,312 $5,202 $3,247 ====== ====== ====== ====== PRIMARY EARNINGS PER SHARE $ 0.88 $ 0.74 $ 2.89 $ 1.84 ====== ====== ====== ====== (1) FULLY DILUTED EARNINGS PER SHARE $ 0.87 $ 0.73 $ 2.89 $ 1.82 ====== ====== ====== ====== (1) 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. (2) A two-for-one stock split effected as a special stock distribution was paid on July 13, 1997 to stockholders of record as of June 10, 1997. All share and per share amounts reported herein have been adjusted to reflect the effects of this split.