EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income (loss) by the weighted-average shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares used in the basic earnings (loss) per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings (loss) per share if the effect of including such instruments is antidilutive.

The Company has two groups of common stock, denoted as the DHI Group Common Stock and the Class V Common Stock. The DHI Group Common Stock consists of four classes of common stock, referred to as Class A Common Stock, Class B Common Stock, Class C Common Stock, and Class D Common Stock. The DHI Group generally refers to the direct and indirect interest of Dell Technologies in all of Dell Technologies' business, assets, properties, liabilities, and preferred stock other than those attributable to the Class V Group, as well as its retained interest in the Class V Group equal to approximately 35% of the Company's economic interest in the Class V Group as of the closing date of the EMC merger transaction. The Class V Common Stock is intended to track the economic performance of approximately 65% of the Company's economic interest in the Class V Group as of such date. As of the closing date of the EMC merger transaction, the Class V Group consisted of approximately 343 million shares of common stock of VMware held by the Company. See Note 17 of the Notes to the Unaudited Condensed Consolidated Financial Statements and Exhibit 99.1 filed with this report for more information regarding the allocation of earnings from Dell Technologies' interest in VMware between the DHI Group and the Class V Common Stock.

For purposes of calculating earnings (loss) per share, the Company used the two-class method. As all classes of DHI Group Common Stock share the same rights in dividends, basic and diluted earnings (loss) per share are the same for each class of DHI Group Common Stock.

The following table sets forth basic and diluted earnings (loss) per share for each of the periods presented:



	Three Months Ended						Nine Months Ended
	October 28, 2016			October 30, 2015			October 28, 2016			October 30, 2015
	(in millions, except per share amounts)
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
Continuing operations - Class V Common Stock - basic	$	0.79		$	—		$	0.79		$	—
Continuing operations - DHI Group - basic	$	(3.62	)	$	(0.65	)	$	(5.70	)	$	(2.47	)
Discontinued operations - DHI Group - basic	$	(0.88	)	$	0.21		$	2.01		$	0.13

Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
Continuing operations - Class V Common Stock - diluted	$	0.78		$	—		$	0.78		$	—
Continuing operations - DHI Group - diluted	$	(3.63	)	$	(0.65	)	$	(5.70	)	$	(2.47	)
Discontinued operations - DHI Group - diluted	$	(0.88	)	$	0.21		$	2.01		$	0.13

The following table sets forth the computation of basic and diluted earnings (loss) per share for each of the periods presented:



	Three Months Ended						Nine Months Ended
	October 28, 2016			October 30, 2015			October 28, 2016			October 30, 2015
	(in millions, except per share amounts)
Numerator: Continuing operations - Class V Common Stock
Net income from continuing operations attributable to Class V Common Stock - basic	$	175		$	—		$	175		$	—
Incremental dilution from VMware attributable to Class V Common Stock (a)	(2		)	—			(2		)	—
Net income from continuing operations attributable to Class V Common Stock - diluted	$	173		$	—		$	173		$	—

Numerator: Continuing operations - DHI Group
Net loss from continuing operations attributable to DHI Group - basic	$	(1,801	)	$	(264	)	$	(2,486	)	$	(1,000	)
Incremental dilution from VMware attributable to DHI Group (a)	(1		)	—			(1		)	—
Net loss from continuing operations attributable to DHI Group - diluted	$	(1,802	)	$	(264	)	$	(2,487	)	$	(1,000	)

Numerator: Discontinued operations - DHI Group
Income (loss) from discontinued operations, net of income taxes - basic and diluted	$	(438	)	$	84		$	875		$	51

Denominator: Class V Common Stock weighted-average shares outstanding
Weighted-average shares outstanding - basic	222			—			222			—
Dilutive effect of options, restricted stock units, restricted stock, and other (b)	—			—			—			—
Weighted-average shares outstanding - diluted	222			—			222			—
Weighted-average shares outstanding - antidilutive (b)	—			—			—			—

Denominator: DHI Group weighted-average shares outstanding
Weighted-average shares outstanding - basic	497			405			436			405
Dilutive effect of options, restricted stock units, restricted stock, and other	—			—			—			—
Weighted-average shares outstanding - diluted	497			405			436			405
Weighted-average shares outstanding - antidilutive (c)	33			55			30			54

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(a)	The incremental dilution from VMware represents the impact of VMware's dilutive securities on the DHI Group and Class V Common Stock's respective diluted earnings (loss) per share and is calculated by multiplying the difference between VMware's basic and diluted earnings (loss) per share by the number of VMware shares owned by the Company.


(b)	The dilutive effect of Class V stock-based incentive awards was not material to the calculation of the weighted-average Class V Common Stock outstanding. The antidilutive effect of these awards was also not material.


(c)	Stock-based incentive awards have been excluded from the calculation of the DHI Group's diluted earnings (loss) per share because their effect would have been antidilutive, as the Company had a net loss from continuing operations attributable to the DHI Group for the periods presented.

The following table presents a reconciliation to the consolidated net income (loss) attributable to Dell Technologies Inc.:



	Three Months Ended				Nine Months Ended
	October 28, 2016		October 30, 2015		October 28, 2016		October 30, 2015
	(in millions)
Net income from continuing operations attributable to Class V Common Stock	175		—		175		—
Net loss from continuing operations attributable to DHI Group	(1,801	)	(264	)	(2,486	)	(1,000	)
Net loss from continuing operations attributable to Dell Technologies Inc.	(1,626	)	(264	)	(2,311	)	(1,000	)
Income (loss) from discontinued operations, net of income taxes	(438	)	84		875		51
Net loss attributable to Dell Technologies Inc.	(2,064	)	(180	)	(1,436	)	(949	)