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):



	2015			2014			2013
Numerator:
Net income attributable to EMC Corporation	$	1,990		$	2,714		$	2,889
Incremental dilution from VMware	(5		)	(7		)	(8		)
Net income – dilution attributable to EMC Corporation	$	1,985		$	2,707		$	2,881
Denominator:
Weighted average shares, basic	1,944			2,028			2,074
Weighted average common stock equivalents	18			26			28
Assumed conversion of the 2013 Notes and associated warrants	—			5			58
Weighted average shares, diluted	1,962			2,059			2,160

Restricted stock awards, restricted stock units and options to acquire 6 million, 2 million and 4 million shares of our common stock for the years ended December 31, 2015, 2014 and 2013, respectively, were excluded from the calculation of diluted earnings per share because they were anti-dilutive. 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.

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 were convertible due to maturity or when the average stock price exceeded the conversion price of the 2013 Notes.

Concurrent with the issuance of the 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. Approximately half of the associated warrants were exercised in 2012 and the remaining 109 million warrants were exercised between February 18, 2014 and March 17, 2014 and were settled with 29 million shares of our common stock. As such, we included the impact of the remaining outstanding sold warrants in our diluted earnings per share calculation during the years ended December 31, 2014 and 2013.

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 February 2013 and an additional 250 million shares of our common stock in December 2014. For the year ended December 31, 2015, we spent $2.0 billion to repurchase 76 million shares of our common stock. Of the 500 million shares authorized for repurchase, we have repurchased 277 million shares at a total cost of $7.4 billion, leaving a remaining balance of 223 million shares authorized for future repurchases. We spent approximately $3.0 billion in both the years ended December 31, 2014 and December 31, 2013 on the repurchase of stock.

VMware Repurchase of Common Stock

The following table summarizes stock repurchase authorizations in the years ended December 31, 2015, 2014 and 2013 (amounts in table in millions):



Month Authorized	Amount Authorized		Expiration Date	Status
January 2015	$	1,000	End of 2017	Open
August 2014	1,000		End of 2016	Completed in Q3’15
August 2013	700		End of 2015	Completed in Q4’14
November 2012	250		End of 2014	Completed in Q4’13
February 2012	600		End of 2013	Completed in Q2’13

From time to time, VMware repurchases stock pursuant to the January 2015 authorizations in open market transactions or privately negotiated transactions as permitted by securities laws and other legal requirements. All shares repurchased under VMware’s stock repurchase programs are retired.

The following table summarizes stock repurchase activity in the years ended December 31, 2015, 2014 and 2013 (table in millions, except per share amounts):



	For the Year Ended December 31,
	2015		2014		2013
Aggregate purchase price	$	1,125	$	700	$	508
Class A common shares repurchased	13		8		7
Weighted-average price per share	$	83.36	$	91.61	$	76.58

The amount of repurchased shares includes commissions and was classified as a reduction to additional paid-in capital. As of December 31, 2015, the cumulative authorized amount remaining for repurchase was $835 million.

Cash Dividend on Common Stock

During 2013, our Board of Directors approved the initiation of a quarterly cash dividend to EMC shareholders of $0.10 per share of common stock and in the second quarter of 2014, our Board of Directors approved an increase of the dividend to $0.115 per share of common stock.

Our Board of Directors declared the following dividends during the periods presented:



Declaration Date	Dividend Per Share		Record Date	Total Amount (in millions)		Payment Date
Fiscal Year 2015:
February 27, 2015	$	0.115	April 1, 2015	$	229	April 23, 2015
May 20, 2015	$	0.115	July 1, 2015	$	226	July 23, 2015
July 30, 2015	$	0.115	October 1, 2015	$	229	October 23, 2015
December 17, 2015	$	0.115	January 4, 2016	$	230	January 22, 2016

Fiscal Year 2014:
February 6, 2014	$	0.10	April 1, 2014	$	209	April 23, 2014
April 17, 2014	$	0.115	July 1, 2014	$	237	July 23, 2014
July 30, 2014	$	0.115	October 1, 2014	$	239	October 23, 2014
December 10, 2014	$	0.115	January 2, 2015	$	234	January 23, 2015

Fiscal Year 2013:
May 28, 2013	$	0.10	July 1, 2013	$	212	July 23, 2013
August 1, 2013	$	0.10	October 1, 2013	$	210	October 23, 2013
December 12, 2013	$	0.10	January 8, 2014	$	206	January 23, 2014

On February 11, 2016, EMC declared a quarterly dividend of $0.115 per share to shareholders of record on April 1, 2016, payable on April 22, 2016.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), which is presented net of tax, for the years ended December 31, 2015 and 2014 consist of the following (table in millions):



	Foreign Currency Translation Adjustments			Unrealized Net Gains (Losses) 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 Interests			Total
Balance as of January 1, 2014^(a)	$	(52	)	$	31		$	(105	)	$	(110	)	$	(3	)	$	(239	)
Other comprehensive income (loss) before reclassifications	(135		)	57			24			(22		)	—			(76		)
Net losses (gains) reclassified from accumulated other comprehensive income	—			(39		)	(18		)	6			—			(51		)
Net current period other comprehensive income (loss)	(135		)	18			6			(16		)	—			(127		)
Balance as of December 31, 2014^(b)	(187		)	49			(99		)	(126		)	(3		)	(366		)
Other comprehensive income (loss) before reclassifications	(169		)	(16		)	21			(7		)	4			(167		)
Net losses (gains) reclassified from accumulated other comprehensive income	—			(43		)	(11		)	8			—			(46		)
Net current period other comprehensive income (loss)	(169		)	(59		)	10			1			4			(213		)
Balance as of December 31, 2015^(c)	$	(356	)	$	(10	)	$	(89	)	$	(125	)	$	1		$	(579	)


(a)	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.


(b)	Net of taxes (benefits) of $31 million for unrealized net gains on investments, $(64) million for unrealized net losses on derivatives and $(70) million for actuarial net loss on pension plans.


(c)	Net of taxes (benefits) of $(5) million for unrealized net gains on investments, $(56) million for unrealized net losses on derivatives and $(71) million for actuarial net loss on pension plans.

The amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 is as follows (table in millions):



	For the Year Ended
Accumulated Other Comprehensive Income Components	December 31, 2015			December 31, 2014			Impacted Line Item on Consolidated Income Statements
Net gain on investments:	$	70		$	62		Investment income
	(27		)	(23		)	Provision for income tax
Net of tax	$	43		$	39

Net gain on derivatives:
Foreign exchange contracts	$	30		$	39		Product sales revenue
Foreign exchange contracts	(2		)	(10		)	Cost of product sales
Interest rate swap	(22		)	(11		)	Other interest expense
Total net gain on derivatives before tax	6			18
	5			—			Provision for income tax
Net of tax	$	11		$	18

Net loss from pension and other postretirement plans	$	(13	)	$	(9	)	Selling, general and administrative expense
	5			3			Provision for income tax
Net of tax	$	(8	)	$	(6	)

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.