Earnings Per Share (Notes)

3 Months Ended

May 04, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 13 — 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 106 million and 167 million common shares for the three months ended May 4, 2012, and April 29, 2011, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended May 4, 2012, and April 29, 2011:

	Three Months Ended
	May 4, 2012		April 29, 2011
	(in millions, except per share amounts)
Numerator:
Net income	$	635	$	945
Denominator:
Weighted-average shares outstanding:
Basic	1,759		1,908
Effect of dilutive options, restricted stock units, restricted stock, and other	15		15
Diluted	1,774		1,923
Earnings per share:
Basic	$	0.36	$	0.50
Diluted	$	0.36	$	0.49