Earnings Per Share (Notes)

6 Months Ended

Aug. 03, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 13 — EARNINGS PER SHARE

Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. Dell excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. Accordingly, certain stock-based incentive awards have been excluded from the calculation of diluted earnings per share, totaling 135 million and 138 million common shares for the three months ended August 3, 2012, and July 29, 2011, respectively, and 121 million and 153 million for the six months ended August 3, 2012, and July 29, 2011, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended August 3, 2012, and July 29, 2011:

	Three Months Ended				Six Months Ended
	August 3, 2012		July 29, 2011		August 3, 2012		July 29, 2011
	(in millions, except per share amounts)
Numerator:
Net income	$	732	$	890	$	1,367	$	1,835
Denominator:
Weighted-average shares outstanding:
Basic	1,747		1,858		1,753		1,883
Effect of dilutive options, restricted stock units, restricted stock, and other	6		13		11		14
Diluted	1,753		1,871		1,764		1,897
Earnings per share:
Basic	$	0.42	$	0.48	$	0.78	$	0.97
Diluted	$	0.42	$	0.48	$	0.77	$	0.97