EMC 2010 Annual Report Download - page 81

Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 when the average stock price exceeds the conversion price of the Notes.
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 when the average stock price exceeds the exercise price.
Options to acquire 50.6 million, 152.4 million and 144.2 million shares of our common stock for the years ended December 31, 2010, 2009 and 2008,
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. For the year ended December 31, 2010, we spent $1.0 billion to repurchase
52.7 million shares of our common stock. We plan to increase our repurchase of common stock from $1.0 billion in 2010 to $1.5 billion in 2011. Of the
250.0 million shares authorized for repurchase, we have repurchased 114.0 million shares at a total cost of $1.7 billion, leaving a remaining balance of
136.0 million shares authorized for future repurchases.
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss, which is presented net of tax, consists of the following (table in thousands):
December 31,
2010
December 31,
2009
Foreign currency translation adjustments, net of tax benefits of $0 and $0 $ (6,983) $ (2,349)
Unrealized losses on temporarily impaired investments, net of tax benefits of $(7,278) and $(8,679) (12,533) (15,361)
Unrealized gains on investments, net of taxes of $32,684 and $14,329 53,823 23,617
Unrealized gains (losses) on derivatives, net of taxes (benefits) of $(3,403) and $599 (5,934) 2,211
Recognition of actuarial net loss from pension and other postretirement plans, net of tax benefits of $(70,388) and $(68,996) (117,058) (113,001)
(88,685) (104,883)
Less: Accumulated Other Comprehensive Income attributable to the non-controlling interest in VMware, Inc. (3,932) (839)
$ (92,617) $ (105,722)
Reclassification adjustments between other comprehensive loss and the income statement consist of the following (table in thousands):
Year Ended December 31,
2010 2009 2008
Realized gains on investments, net of taxes of $4,178, $7,911 and $2,347 $ 11,792 $ 12,897 $ 4,212
Realized gains (losses) on derivatives, net of taxes (benefit) of $(745), $(736) and $93 (6,708) (6,626) 834
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.
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