Dell 2010 Annual Report Download - page 104

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Table of Contents
DELL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 28, January 29, January 30,
2011 2010 2009
(in millions, except per share amounts)
Numerator:
Net income $ 2,635 $ 1,433 $ 2,478
Denominator:
Weighted-average shares outstanding:
Basic 1,944 1,954 1,980
Effect of dilutive options, restricted stock units, restricted stock, and other 11 8 6
Diluted 1,955 1,962 1,986
Earnings per share:
Basic $ 1.36 $ 0.73 $ 1.25
Diluted $ 1.35 $ 0.73 $ 1.25
NOTE 14 — CAPITALIZATION
Preferred Stock
Authorized Shares — Dell has the authority to issue 5 million shares of preferred stock, par value $.01 per share. At January 28, 2011,
and January 29, 2010, no shares of preferred stock were issued or outstanding.
Common Stock
Authorized Shares — At January 28, 2011, Dell was authorized to issue 7 billion shares of common stock, par value $.01 per share.
Share Repurchase Program — Dell has a share repurchase program that authorizes it to purchase shares of common stock in order to
increase shareholder value and manage dilution resulting from shares issued under Dell's equity compensation plans. However, Dell does
not currently have a policy that requires the repurchase of common stock in conjunction with stock-based payment arrangements. During
Fiscal 2011, the amount of shares repurchased was $800 million. At January 28, 2011, Dell's remaining authorized amount for share
repurchases was $3.7 billion.
NOTE 15 — STOCK-BASED COMPENSATION AND BENEFIT PLANS
Stock-based Compensation
Description of the Plans
Employee Stock Plans — Dell is currently issuing stock grants under the Dell Amended and Restated 2002 Long-Term Incentive Plan
(the "2002 Incentive Plan"), which was approved by shareholders on December 4, 2007. There are previous plans that have been
terminated, except for options previously granted under those plans which remain outstanding. The 2002 Incentive Plan and the previous
plans are all collectively referred to as the "Stock Plans."
The 2002 Incentive Plan provides for the granting of stock-based incentive awards to Dell's employees and non-employee directors.
Awards may be incentive stock options within the meaning of Section 422 of the Internal Revenue Code, non-qualified stock options,
restricted stock, or restricted stock units. There were approximately
100