EMC 2011 Annual Report Download - page 83

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 13.3 million, 54.5 million and 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 $2.0 billion to repurchase 81.8 million shares of our common stock. We plan to spend up to $700.0 million in 2012 on common
stock repurchases.
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