Stockholders' Equity

12 Months Ended

Dec. 31, 2013

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ 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 millions):

	2013			2012			2011
Numerator:
Net income attributable to EMC Corporation	$	2,889		$	2,733		$	2,461
Incremental dilution from VMware	(8		)	(10		)	(14		)
Net income – dilution attributable to EMC Corporation	$	2,881		$	2,723		$	2,447
Denominator:
Weighted average shares, basic	2,074			2,093			2,056
Weighted average common stock equivalents	28			40			52
Assumed conversion of the 2013 Notes and associated warrants	58			73			121
Weighted average shares, diluted	2,160			2,206			2,229

Due to the cash settlement feature of the principal amount of the 2013 Notes, we only included 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. The remaining 108 million warrants become exercisable each day beginning February 18, 2014 over the course of the settlement period through March 17, 2014. These warrants will be settled with shares of our common stock. As such, we include the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation during the year ended December 31, 2013.

Restricted stock awards, restricted stock units and options to acquire 4 million, 4 million and 13 million shares of our common stock for the years ended December 31, 2013, 2012 and 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. Our Board of Directors authorized the repurchase of 250 million shares of our common stock in April 2008 and an additional 250 million shares of our common stock in February 2013. For the year ended December 31, 2013, we spent $3.0 billion to repurchase 122 million shares of our common stock. Of the 500 million shares authorized for repurchase, we have repurchased 345 million shares at a total cost of $7.4 billion, leaving a remaining balance of 155 million shares authorized for future repurchases. Including the amount spent in 2013, we plan to spend up to $3.5 billion by the end of the second quarter of 2014 and up to $6.0 billion by the end of 2015 on common stock repurchases.

Cash Dividend on Common Stock

In May 2013, our Board of Directors approved the initiation of a quarterly cash dividend to EMC shareholders. Our Board of Directors declared quarterly cash dividends of $0.10 per share of common stock in each of the second, third and fourth quarters of 2013. During the year ended December 31, 2013, EMC paid cash dividends of $415 million. On January 23, 2014, EMC paid a cash dividend of $202 million to shareholders of record as of the close of business on January 8, 2014, which was declared on December 12, 2013.

Accumulated Other Comprehensive Income (Loss)

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

	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 January, 1 2013(a)	$	(9	)	$	64		$	(109	)	$	(153	)	$	(1	)	$	(208	)
Other comprehensive income (loss) before reclassifications	(44		)	(22		)	13			43			—			(10		)
Net losses (gains) reclassified from accumulated other comprehensive income	—			(11		)	(10		)	—			—			(21		)
Net current period other comprehensive income (loss)	(44		)	(33		)	3			43			—			(31		)
Balance as of December 31, 2013(b)	$	(53	)	$	31		$	(106	)	$	(110	)	$	(1	)	$	(239	)

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(a) Net of taxes (benefits) of $37 million for unrealized net gains on investments, $(67) million for unrealized net losses on derivatives and $(87) million for actuarial net loss on pension plans.

(b) Net of taxes (benefits) of $18 million for unrealized net gains on investments, $(66) million for unrealized net losses on derivatives and $(61) million for actuarial net loss on pension plans.

The amounts reclassified out of accumulated other comprehensive income (loss) for the year ended December 31, 2013 is as follows (table in millions):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Impacted Line Item on Consolidated Income Statements
For the Year Ended, December 31, 2013
Net gain on investments:	$	17		Investment income
	(6		)	Provision for income tax
Net of tax	$	11
Net gain on derivatives:
Foreign exchange contracts	$	12		Product sales revenue
Foreign exchange contracts	—			Cost of product sales
Total net gain on derivatives before tax	12
	(2		)	Provision for income tax
Net of tax	$	10

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.