EARNINGS PER SHARE

3 Months Ended

Apr. 29, 2022

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 instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive.

The following table presents basic and diluted earnings per share for the periods indicated:


	Three Months Ended
		April 29, 2022		April 30, 2021
Earnings per share attributable to Dell Technologies Inc. - basic
Continuing operations		$	1.42	$	0.87
Discontinued operations		$	—	$	0.30

Earnings per share attributable to Dell Technologies Inc. — diluted
Continuing operations		$	1.37	$	0.84
Discontinued operations		$	—	$	0.29

The following table presents the computation of basic and diluted earnings per share for the periods indicated:


	Three Months Ended
	April 29, 2022		April 30, 2021
	(in millions)
Numerator: Continuing operations
Net income attributable to Dell Technologies Inc. from continuing operations - basic and diluted	$	1,072	$	660

Numerator: Discontinued operations
Income from discontinued operations, net of income taxes - basic	$	—	$	227
Incremental dilution from VMware (a)	—		(2)
Income from discontinued operations, net of income taxes, attributable to Dell Technologies Inc. - diluted	$	—	$	225

Denominator: Dell Technologies Common Stock weighted-average shares outstanding
Weighted-average shares outstanding — basic	754		757
Dilutive effect of options, restricted stock units, restricted stock, and other	26		25
Weighted-average shares outstanding — diluted	780		782
Weighted-average shares outstanding — antidilutive	1		—

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(a) The incremental dilution from VMware represents the impact of VMware, Inc.’s dilutive securities on diluted earnings per share of Dell Technologies Common Stock, and is calculated by multiplying the difference between VMware, Inc.’s basic and diluted earnings (loss) per share by the number of shares of VMware, Inc. common stock held by the Company.