Its showing correctly, 111GB is the correct capacity, When companies advertise the usable capacity they do it as 1Gigabyte is 1000Megabytes, when it is actually calculated as 1GB is 1024MB (this is the correct way to calculate it, and that is how Windows does it).
Just like how your 320GB HDD shows 296GB, a 500GB drive will show 465GB, and a 1TB drive 93xGB, 3TB 2.72TB etc.