Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Stockholders’ Equity

The reconciliation from basic to diluted earnings per share for both the numerators and denominators is as follows (table in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Numerator:
Net income attributable to EMC Corporation	$	626,338		$	605,649		$	1,862,694		$	1,629,291
Incremental dilution from VMware	(1,766		)	(3,233		)	(7,425		)	(11,178		)
Net income – dilution attributable to EMC Corporation	$	624,572		$	602,416		$	1,855,269		$	1,618,113
Denominator:
Weighted average shares, basic	2,104,205			2,054,007			2,089,516			2,060,242
Weighted common stock equivalents	38,043			46,629			41,974			55,418
Assumed conversion of the 2013 Notes and associated warrants	68,173			106,463			75,315			128,848
Weighted average shares, diluted	2,210,421			2,207,099			2,206,805			2,244,508

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only include the impact of the premium feature in our diluted earnings per share calculation when the 2013 Notes are convertible due to maturity or when the average stock price exceeds the conversion price of the 2013 Notes.

Concurrent with the issuance of the 2011 Notes and 2013 Notes, we also entered into separate transactions in which we sold warrants to acquire, subject to customary anti-dilution adjustments, approximately 215 million shares of our common stock at an exercise price of approximately $19.55 per share of our common stock. Half of the associated warrants were exercised during the nine months ended September 30, 2012. We include the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation when the average stock price exceeds the exercise price.

Restricted stock awards, restricted stock units and options to acquire shares of our common stock in the amount of 5.2 million and 4.3 millionfor the three and nine months ended September 30, 2012, respectively, and 17.6 million and 15.4 million for the three and nine months ended September 30, 2011, respectively, were excluded from the calculation of diluted earnings per share because they were antidilutive. The incremental dilution from VMware represents the impact of VMware’s dilutive securities on EMC’s consolidated diluted net income per share and is calculated by multiplying the difference between VMware’s basic and diluted earnings per share by the number of VMware shares owned by EMC.

Repurchases of Common Stock

We utilize both authorized and unissued shares (including repurchased shares) for all issuances under our equity plans. In 2008, our Board of Directors authorized the repurchase of 250.0 million shares of our common stock. For the nine months ended September 30, 2012, we spent $410.0 million to repurchase 15.3 million shares of our common stock. Of the 250.0 million shares authorized for repurchase, we have repurchased 211.2 million shares at a total cost of $4.1 billion, leaving a remaining balance of 38.8 million shares authorized for future repurchases. We plan to spend up to $700.0 million in 2012 on common stock repurchases.

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):

	September 30, 2012			December 31, 2011
Foreign currency translation adjustments	$	(2,924	)	$	(10,780	)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(3,128) and $(8,492)	(6,099		)	(15,044		)
Unrealized gains on investments, net of taxes of $61,961 and $18,343	105,755			30,608
Unrealized losses on derivatives, net of tax benefits of $(68,007) and $(62,210)	(111,235		)	(100,446		)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(81,798) and $(81,798)	(139,108		)	(139,108		)
	(153,611		)	(234,770		)
Less: accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,692		)	(239		)
	$	(155,303	)	$	(235,009	)