NOTE 14 — 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 167 million and 204 million common shares for the first quarters of Fiscal 2012 and Fiscal 2011, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended April 29, 2011, and April 30, 2010:



	Three Months Ended
	April 29, 2011		April 30, 2010
	(in millions, except per share amounts)
Numerator:
Net income	$	945	$	341
Denominator:
Weighted-average shares outstanding:
Basic	1,908		1,961
Effect of dilutive options, restricted stock units, restricted stock, and other	15		12
Diluted	1,923		1,973
Earnings per share:
Basic	$	0.50	$	0.17
Diluted	$	0.49	$	0.17