Stockholders' Equity

3 Months Ended

Mar. 31, 2013

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
	March 31, 2013			March 31, 2012
Numerator:
Net income attributable to EMC Corporation	$	580,050		$	586,842
Incremental dilution from VMware	(1,485		)	(2,891		)
Net income – dilution attributable to EMC Corporation	$	578,565		$	583,951
Denominator:
Weighted average shares, basic	2,102,368			2,067,828
Weighted common stock equivalents	30,397			45,606
Assumed conversion of the 2013 Notes and associated warrants	56,645			88,499
Weighted average shares, diluted	2,189,410			2,201,933

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 three months ended March 31, 2013. 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 3.1 million and 4.6 million of our common stock for the three months ended March 31, 2013 and 2012, 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 three months ended March 31, 2013, we spent $308.0 million to repurchase 12.6 million shares of our common stock. Of the 250.0 million shares authorized for repurchase, we have repurchased 235.5 million shares at a total cost of $4.7 billion, leaving a remaining balance of 14.5 million shares authorized for future repurchases. In February 2013, our Board of Directors authorized the repurchase of an additional 250.0 million shares of our common stock. We plan to spend up to $1.0 billion in 2013 on common stock repurchases.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), which is presented net of tax, consist of the following (table in thousands):

	Foreign Currency Translation Adjustments			Unrealized Net Gains on Investments			Unrealized Net Losses on Derivatives			Recognition of Actuarial Net Loss from Pension and Other Postretirement Plans			Accumulated Other Comprehensive Income Attributable to the Non-controlling Interest in VMware, Inc.			Total
Balance as of December 31, 2012(a)	$	(8,786	)	$	63,485		$	(108,645	)	$	(153,172	)	$	(1,155	)	$	(208,273	)
Other comprehensive income before reclassifications	(31,205		)	719			5,866			—			57			(24,563		)
Net losses (gains) reclassified from accumulated other comprehensive income	—			(3,761		)	(5,374		)	—			—			(9,135		)
Net current period other comprehensive income	(31,205		)	(3,042		)	492			—			57			(33,698		)
Balance at March 31, 2013(b)	$	(39,991	)	$	60,443		$	(108,153	)	$	(153,172	)	$	(1,098	)	$	(241,971	)

(a) Net of taxes (benefits) of $36.6 million for unrealized net gains on investments, $(67.2) million for unrealized net losses on derivatives and $(87.3) million for actuarial net loss on pension plans.

(b) Net of taxes (benefits) of $36.0 million for unrealized net gains on investments, $(66.9) million for unrealized net losses on derivatives and $(87.3) million for actuarial net loss on pension plans.

The amounts reclassified out of accumulated other comprehensive income (loss) for the three months ended March 31, 2013 are as follows (table in thousands):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
Net gain on investments:	$	5,865		Investment income
	(2,104		)	Provision for income tax
Net of tax	$	3,761
Net gain on derivatives:
Foreign exchange contracts	$	10,021		Product sales revenue
Foreign exchange contracts	(3,879		)	Cost of product sales
Total net gain on derivatives before tax	6,142
	(768		)	Provision for income tax
Net of tax	$	5,374