Dell 2009 Annual Report Download - page 91

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
pricing matters, contained in the RAR and has contested them through the IRS administrative appeals procedures. The first meeting
between Dell and the IRS Appeals Division is scheduled for early 2010. Dell anticipates the appeals process will involve multiple
meetings and could take several years to complete. Dell believes that adequate reserves have been provided related to all matters
contained in tax periods open to examination. However, should Dell experience an unfavorable outcome in this matter, such outcome
could have a material impact on its results of operations, financial position, and cash flows. Although the timing of income tax audit
resolutions and negotiations with taxing authorities are highly uncertain, Dell does not anticipate a significant change to the total amount
of unrecognized income tax benefits within the next 12 months.
Dell takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments
from various jurisdictions. Dell believes its positions in these non-income tax litigation matters are supportable, that a liability is not
probable, and that it will ultimately prevail. In the normal course of business, Dell's positions and conclusions related to its non-income
taxes could be challenged and assessments may be made. To the extent new information is obtained and Dell's views on its positions,
probable outcomes of assessments, or litigation change, changes in estimates to Dell's accrued liabilities would be recorded in the period
in which such determination is made.
NOTE 11 — EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share for each of the past three fiscal years:
Fiscal Year Ended
January 29, January 30, February 1,
2010 2009 2008
(in millions, except per share amounts)
Numerator:
Net income $ 1,433 $ 2,478 $ 2,947
Denominator:
Weighted-average shares outstanding:
Basic 1,954 1,980 2,223
Effect of dilutive options, restricted stock units, restricted stock, and other 8 6 24
Diluted 1,962 1,986 2,247
Earnings per common share:
Basic $ 0.73 $ 1.25 $ 1.33
Diluted(a) $ 0.73 $ 1.25 $ 1.31
(a) 220 million, 252 million, and 230 million shares in stock based incentive awards have been excluded from the calculation of diluted earnings per share for Fiscal
2010, 2009 and 2008, respectively, as these awards are antidilutive.
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