Stockholders' Equity

3 Months Ended

Mar. 31, 2012

Shareholders' Equity

12.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,		March 31,
	2012		2011
Numerator:
Net income attributable to EMC Corporation	$	586,842	$	477,148
Incremental dilution from VMware		(2,891)		(2,764)
Net income – dilution attributable to EMC Corporation	$	583,951	$	474,384
Denominator:
Weighted average shares, basic		2,067,828		2,066,136
Weighted common stock equivalents		45,606		59,841
Assumed conversion of the 2013 Notes and associated warrants		88,499		132,301
Weighted average shares, diluted		2,201,933		2,258,278

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, 2012. We include the impact of the remainingoutstanding 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 sharesof our common stock in the amount of4.6million and 15.9 millionfor the three months endedMarch 31, 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. 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. We did not repurchase any shares in the three months endedMarch 31, 2012.We plan to spend up to $700.0 million 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):

		March 31,		December 31,
		2012		2011
Foreign currency translation adjustments	$	4,206	$	(10,780)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(3,850) and
$(8,492)		(6,770)		(15,044)
Unrealized gains on investments, net of taxes of $28,396 and $18,343		47,293		30,608
Unrealized losses on derivatives, net of tax benefits of $(56,287) and $(62,210)		(90,412)		(100,446)
Recognition of actuarial net loss from pension and other postretirement plans, net of tax
benefits of $(81,798) and $(81,798)		(139,108)		(139,108)
		(184,791)		(234,770)
Less: accumulated other comprehensive income attributable to the
non-controlling interest in VMware, Inc.		(901)		(239)
	$	(185,692)	$	(235,009)