Unfortunately, that is correct. The hard drive is 120,000,000,000 bytes in size. However, Windows and other Operating Systems don't count is steps of 1000, they count in steps of 1024 so 1KB = 1024 bytes, 1MB = 1024KB, 1GB = 1024 MB. Due to this conversion you seem to lose some hard drive space along the way and it reports a 120GB hard drive as 111GB. The biggest the drive the bigger the apparent loss e.g. a 1TB hard drive reports as 931GB.