Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity

O. 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):

	2011	2010	2009
Numerator:
Net income attributable to EMC Corporation	$ 2,461,337	$ 1,899,995	$ 1,088,077
Incremental dilution from VMware	(14,082)	(9,267)	(2,252)
Net income – diluted attributable to EMC Corporation	$ 2,447,255	$ 1,890,728	$ 1,085,825
Denominator:
Weighted average shares, basic	2,055,536	2,055,959	2,022,371
Weighted common stock equivalents	52,460	49,616	29,393
Assumed conversion of the Notes and associated warrants	121,117	42,356	3,382
Weighted average shares, diluted	2,229,113	2,147,931	2,055,146

Due to the cash settlement feature of the principal amount of the Notes, we only include the impact of the premium feature in our diluted earnings per share calculation for our matured 2011 Notes and for our 2013 Notes when the average stock price exceeds the conversion price.

Concurrent with the issuance of the 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. We also include the impact of the sold warrants in our diluted earnings per share calculation for our matured 2011 Notes and for our 2013 Notes when the average stock price exceeds the exercise price.

Restricted stock awards, restricted stock units and options to acquire 13.3million, 54.5 millionand 162.0 million shares of our common stock for the years ended December 31, 2011, 2010 and 2009, 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. Of the 250.0 million shares authorized for repurchase, we have repurchased 195.8 million shares at a total cost of $3.7 billion, leaving a remaining balance of 54.2 million shares authorized for future repurchases. For the year ended December 31, 2011, we spent $2.0billion to repurchase 81.8 million shares of our common stock. We plan to spend up to $700.0million 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):

		December 31,		December 31,
		2011		2010
Foreign currency translation adjustments	$	(10,780)	$	(6,983)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(8,492) and
$(7,278)		(15,044)		(12,533)
Unrealized gains on investments, net of taxes of $18,343 and $32,684		30,608		53,823
Unrealized losses on derivatives, net of tax benefits of $(62,210) and $(3,403)		(100,446)		(5,934)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax
benefits of $(81,798) and $(70,388)		(139,108)		(117,058)
		(234,770)		(88,685)
Less: Accumulated Other Comprehensive Income attributable to the
non-controlling interest in VMware, Inc.		(239)		(3,932)
	$	(235,009)	$	(92,617)

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.