Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Stockholders’ Equity

Net Income Per Share

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

	2012			2011			2010
Numerator:
Net income attributable to EMC Corporation	$	2,732,613		$	2,461,337		$	1,899,995
Incremental dilution from VMware	(9,977		)	(14,082		)	(9,267		)
Net income – dilution attributable to EMC Corporation	$	2,722,636		$	2,447,255		$	1,890,728
Denominator:
Weighted average shares, basic	2,093,372			2,055,536			2,055,959
Weighted average common stock equivalents	40,238			52,460			49,616
Assumed conversion of the 2013 Notes and associated warrants	72,029			121,117			42,356
Weighted average shares, diluted	2,205,639			2,229,113			2,147,931

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 year ended December 31, 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 4.1 million, 13.3 million and 54.5 million shares of our common stock for the years ended December 31, 2012, 2011 and 2010, 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 year ended December 31, 2012, we spent $700.0 million to repurchase 27.1 million shares of our common stock. Of the 250.0 million shares authorized for repurchase, we have repurchased 222.9 million shares at a total cost of $4.4 billion, leaving a remaining balance of 27.1 million shares authorized for future repurchases. We plan to spend up to $1.0 billion in 2013 on common stock repurchases. In February 2013, our Board of Directors authorized the repurchase of an additional 250.0 million shares of our common stock.

Accumulated Other Comprehensive Income (Loss)

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

	December 31, 2012			December 31, 2011
Foreign currency translation adjustments	$	(8,786	)	$	(10,780	)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(2,392) and $(8,492)	(4,775		)	(15,044		)
Unrealized gains on investments, net of taxes of $39,017 and $18,343	68,260			30,608
Unrealized losses on derivatives, net of tax benefits of $(67,248) and $(62,211)	(108,645		)	(100,446		)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(87,288) and $(81,798)	(153,172		)	(139,108		)
	(207,118		)	(234,770		)
Less: accumulated other comprehensive income attributable to the non-controlling interest in VMware, Inc.	(1,155		)	(239		)
	$	(208,273	)	$	(235,009	)

EMC Preferred Stock

Our preferred stock may be issued from time to time in one or more series, with such terms as our Board of Directors may determine, without further action by our shareholders.