Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | |
Class A Common Stock | Class B Common Stock | ||
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'VMWARE, INC. | ' | ' |
Entity Central Index Key | '0001124610 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 130,366,009 | 300,000,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | ' | ' | ' | ' | ||||
License | $564 | $491 | $1,583 | $1,490 | ||||
Services | 725 | 643 | 2,141 | 1,822 | ||||
Total Revenues | 1,289 | 1,134 | 3,724 | 3,312 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Cost of license revenues | 51 | [1] | 60 | [1] | 163 | [1] | 174 | [1] |
Cost of services revenues | 132 | [1] | 119 | [1] | 375 | [1] | 356 | [1] |
Research and development | 266 | [1] | 260 | [1] | 797 | [1] | 731 | [1] |
Sales and marketing | 449 | [1] | 412 | [1] | 1,308 | [1] | 1,166 | [1] |
General and administrative | 103 | [1] | 93 | [1] | 298 | [1] | 266 | [1] |
Realignment charges | 1 | [1] | 0 | [1] | 64 | [1] | 0 | [1] |
Operating income | 287 | 190 | 719 | 619 | ||||
Investment income | 7 | 8 | 21 | 20 | ||||
Interest expense with EMC | -1 | -1 | -3 | -4 | ||||
Other income (expense), net | 15 | -2 | 29 | -2 | ||||
Income before income taxes | 308 | 195 | 766 | 633 | ||||
Income tax provision | 47 | 38 | 87 | 93 | ||||
Net income | $261 | $157 | $679 | $540 | ||||
Net income per weighted-average share, basic for Class A and Class B | $0.61 | $0.37 | $1.58 | $1.26 | ||||
Net income per weighted-average share, diluted for Class A and Class B | $0.60 | $0.36 | $1.57 | $1.24 | ||||
Weighted-average shares, basic for Class A and Class B | 430 | 427 | 429 | 427 | ||||
Weighted-average shares, diluted for Class A and Class B | 433 | 433 | 433 | 434 | ||||
[1] | Includes stock-based compensation as follows: Cost of license revenues $1 $0 $2 $1, Cost of services revenues $7 $8 $21 $21, Research and development $52 $60 $165 $148 Sales and marketing $37 $52 $106 $111, General and administrative $16 $12 $42 $34, Realignment charges $0 $0 $6 $0. |
Consolidated_Statements_Of_Inc1
Consolidated Statements Of Income (unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cost Of License Revenues [Member] | ' | ' | ' | ' |
Stock-based Compensation | $1 | $0 | $2 | $1 |
Cost Of Services Revenues [Member] | ' | ' | ' | ' |
Stock-based Compensation | 7 | 8 | 21 | 21 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Stock-based Compensation | 52 | 60 | 165 | 148 |
Sales and Marketing Expense [Member] | ' | ' | ' | ' |
Stock-based Compensation | 37 | 52 | 106 | 111 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Stock-based Compensation | 16 | 12 | 42 | 34 |
Realignment Charges [Member] | ' | ' | ' | ' |
Stock-based Compensation | $0 | $0 | $6 | $0 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $261 | $157 | $679 | $540 |
Changes in market value of available-for-sale securities: | ' | ' | ' | ' |
Unrealized gains (losses), net of taxes of $3, $3, $(2) and $4 | 5 | 4 | -3 | 7 |
Reclassification of (gains) realized during the period, net of taxes of $0, $0, $(1) and $0 | 0 | 0 | -1 | -1 |
Net change in market value of available-for-sale securities | 5 | 4 | -4 | 6 |
Changes in market value of effective foreign currency forward exchange contracts: | ' | ' | ' | ' |
Unrealized gains (losses), net of taxes of $0 for all periods | -1 | 1 | -1 | 1 |
Reclassification of losses realized during the period, net of taxes of $0 for all periods | 1 | 0 | 0 | 0 |
Net change in market value of effective foreign currency forward exchange contracts | 0 | 1 | -1 | 1 |
Total other comprehensive loss, net | 5 | 5 | -5 | 7 |
Total comprehensive income, net of taxes | $266 | $162 | $674 | $547 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Tax effect on unrealized gains (losses) on available-for-sale securities | $3 | $3 | ($2) | $4 |
Tax effect on reclassification of (gains) on available-for-sale securities realized during the period | 0 | 0 | -1 | 0 |
Tax effect on unrealized gains (losses) on effective foreign currency forward exchange contracts | 0 | 0 | 0 | 0 |
Tax effect on reclassification of losses on effective foreign currency forward exchange contracts realized during the period | $0 | $0 | $0 | $0 |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,263 | $1,609 |
Short-term investments | 3,574 | 3,022 |
Accounts receivable, net of allowance for doubtful accounts of $2 and $4 | 789 | 1,151 |
Due from related parties, net | 0 | 68 |
Deferred tax assets | 183 | 179 |
Other current assets | 116 | 91 |
Total current assets | 6,925 | 6,120 |
Property and equipment, net | 793 | 665 |
Other assets, net | 113 | 128 |
Deferred tax assets | 63 | 103 |
Intangible assets, net | 602 | 732 |
Goodwill | 2,958 | 2,848 |
Total assets | 11,454 | 10,596 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 84 | 90 |
Accrued expenses and other | 546 | 674 |
Due to related parties, net | 16 | 0 |
Unearned revenues | 2,225 | 2,196 |
Total current liabilities | 2,871 | 2,960 |
Unearned revenues | 1,411 | 1,265 |
Other liabilities | 195 | 181 |
Total liabilities | 4,927 | 4,856 |
Contingencies (see Note L) | ' | ' |
Stockholders' equity: | ' | ' |
Additional paid-in capital | 3,545 | 3,432 |
Accumulated other comprehensive income | 1 | 6 |
Retained earnings | 2,977 | 2,298 |
Total stockholders' equity | 6,527 | 5,740 |
Total liabilities and stockholders' equity | 11,454 | 10,596 |
Class A Common Stock | ' | ' |
Stockholders' equity: | ' | ' |
Common stock | 1 | 1 |
Class B Common Stock | ' | ' |
Stockholders' equity: | ' | ' |
Common stock | 3 | 3 |
EMC [Member] | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Note payable to EMC | $450 | $450 |
Consolidated_Balance_Sheets_un1
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts | $2 | $4 |
Class A Common Stock | ' | ' |
Common Stock, Par Value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized (Shares) | 2,500 | 2,500 |
Common Stock, Shares Issued (Shares) | 131 | 129 |
Common Stock, Shares Outstanding (Shares) | 131 | 129 |
Class B Common Stock | ' | ' |
Common Stock, Par Value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized (Shares) | 1,000 | 1,000 |
Common Stock, Shares Issued (Shares) | 300 | 300 |
Common Stock, Shares Outstanding (Shares) | 300 | 300 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' | ' | ' |
Net income | $261 | $157 | $679 | $540 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 82 | 86 | 261 | 262 |
Stock-based compensation | 113 | 119 | 332 | 302 |
Excess tax benefits from stock-based compensation | -12 | -25 | -60 | -111 |
Non-cash realignment charges | 0 | 0 | 15 | 0 |
Gain on disposition of certain lines of business and other, net | -12 | 0 | -31 | 0 |
Other | 4 | -1 | 3 | -1 |
Changes in assets and liabilities, net of acquisitions: | ' | ' | ' | ' |
Accounts receivable | 152 | 67 | 360 | 202 |
Other assets | 4 | -5 | -72 | -122 |
Due to/from related parties, net | 49 | 15 | 84 | 28 |
Accounts payable | -2 | 10 | 16 | 26 |
Accrued expenses | -69 | -64 | -91 | -63 |
Income taxes receivable from EMC | 0 | 0 | 15 | 0 |
Income taxes payable | -2 | 60 | -4 | 128 |
Deferred income taxes, net | 32 | -34 | 41 | -70 |
Unearned revenues | 37 | 51 | 300 | 283 |
Net cash provided by operating activities | 637 | 436 | 1,848 | 1,404 |
Investing activities: | ' | ' | ' | ' |
Additions to property and equipment | -94 | -75 | -247 | -153 |
Purchases of available-for-sale securities | -573 | -765 | -2,227 | -2,720 |
Sales of available-for-sale securities | 253 | 882 | 1,072 | 1,653 |
Maturities of available-for-sale securities | 227 | 234 | 597 | 768 |
Proceeds from disposition of certain lines of business | 6 | 0 | 37 | 0 |
Business acquisitions, net of cash acquired | 0 | -1,242 | -184 | -1,344 |
Other investing | -8 | -8 | -11 | -12 |
Net cash used in investing activities | -189 | -974 | -963 | -1,808 |
Financing activities: | ' | ' | ' | ' |
Proceeds from issuance of common stock | 70 | 70 | 185 | 214 |
Repurchase of common stock | -90 | -129 | -392 | -307 |
Excess tax benefits from stock-based compensation | 12 | 25 | 60 | 111 |
Shares repurchased for tax withholdings on vesting of restricted stock | -17 | -25 | -84 | -90 |
Net cash used in financing activities | -25 | -59 | -231 | -72 |
Net increase (decrease) in cash and cash equivalents | 423 | -597 | 654 | -476 |
Cash and cash equivalents at beginning of the period | 1,840 | 2,077 | 1,609 | 1,956 |
Cash and cash equivalents at end of the period | 2,263 | 1,480 | 2,263 | 1,480 |
Non-cash items: | ' | ' | ' | ' |
Changes in capital additions, accrued but not paid | -3 | -17 | -8 | -2 |
Changes in tax withholdings on vesting of restricted stock, accrued but not paid | -2 | -4 | -1 | 3 |
Fair value of stock options assumed in acquisition | $0 | $17 | $0 | $17 |
Overview_And_Basis_Of_Presenta
Overview And Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Overview And Basis Of Presentation | ' |
A. Overview and Basis of Presentation | |
Company and Background | |
VMware, Inc. (“VMware” or the “Company”) is the leader in virtualization infrastructure solutions utilized by organizations to help them transform the way they build, deliver and consume information technology (“IT”) resources. VMware’s virtualization infrastructure solutions, which include a suite of products designed to deliver a software-defined data center, run on industry-standard desktop computers and servers and support a wide range of operating system and application environments, as well as networking and storage infrastructures. | |
Accounting Principles | |
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |
Unaudited Interim Financial Information | |
These accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s consolidated results of operations, financial position and cash flows for the periods presented. Results of operations are not necessarily indicative of the results that may be expected for the full year 2013. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2012 Annual Report on Form 10-K. | |
As of September 30, 2013, EMC Corporation (“EMC”) holds approximately 79.7% of VMware’s outstanding common stock and 97.2% of the combined voting power of VMware’s outstanding common stock, including 43 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. VMware is a majority-owned and controlled subsidiary of EMC, and its results of operations and financial position are consolidated with EMC’s financial statements. VMware and EMC engage in intercompany transactions, including agreements regarding the use of EMC’s and VMware’s intellectual property and real estate, agreements regarding the sale of goods and services to one another, and an agreement for EMC to resell VMware’s products and services to third party customers. In geographic areas where VMware has not established its own subsidiaries, VMware contracts with EMC subsidiaries for support services and for personnel who are managed by VMware. See Note K and N to the consolidated financial statements for further information. | |
The amounts recorded for VMware’s intercompany transactions with EMC and GoPivotal, Inc. (“Pivotal”) may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the financial position, results of operations and cash flows had VMware engaged in such transactions with an unrelated third party during all periods presented. Accordingly, VMware’s historical financial information is not necessarily indicative of what the Company’s results of operations, financial position and cash flows will be in the future if and when VMware contracts at arm’s length with unrelated third parties for the services the Company receives from and provides to EMC and Pivotal. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of VMware and its subsidiaries. All intercompany transactions and balances between VMware and its subsidiaries have been eliminated. All intercompany transactions with EMC and Pivotal in the consolidated statements of cash flows will be settled in cash, and changes in the current intercompany balances are presented as a component of cash flows from operating activities. | |
Use of Accounting Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting periods, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used for, but not limited to trade receivable valuation, certain accrued liabilities, useful lives of fixed assets and intangible assets, valuation of acquired intangibles, revenue reserves, income taxes, stock-based compensation and contingencies. Actual results could differ from those estimates. |
Business_Combinations_And_Good
Business Combinations And Goodwill | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Business Combinations And Goodwill | ' | |||||
B. Business Combinations and Goodwill | ||||||
Business Combinations | ||||||
On February 15, 2013, VMware acquired Virsto Software (“Virsto”), a provider of software that optimizes storage performance and utilization in virtual environments. The consideration paid for this acquisition was $184 million, net of cash acquired. | ||||||
The following table summarizes the initial allocation of the consideration to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date (table in millions): | ||||||
Intangible assets | $ | 32 | ||||
Goodwill | 162 | |||||
Total intangible assets acquired | 194 | |||||
Deferred tax liabilities, net | — | |||||
Other acquired liabilities, net of acquired assets | (10 | ) | ||||
Total net liabilities assumed | (10 | ) | ||||
Fair value of intangible assets acquired and net liabilities assumed | $ | 184 | ||||
The excess of the consideration for Virsto over the fair values assigned to the assets acquired and liabilities assumed, which represents the goodwill resulting from the acquisition, was allocated to VMware’s one operating segment. Management believes that the goodwill represents the synergies expected from combining the technologies of VMware with those of Virsto, including complementary products that will enhance the Company’s overall product portfolio. | ||||||
The following table summarizes the fair value of the intangible assets acquired by VMware in conjunction with the acquisition of Virsto (amounts in table in millions): | ||||||
Weighted-Average | Fair Value | |||||
Useful Lives | Amount | |||||
(in years) | ||||||
Purchased technology | 5 | $ | 32 | |||
Total intangible assets, net, excluding goodwill | $ | 32 | ||||
The results of operations of Virsto described above have been included in VMware’s consolidated financial statements from the date of purchase. Pro forma results of operations have not been presented as the results of the acquired business were not material to VMware’s consolidated results of operations in the three and nine months ended September 30, 2013. | ||||||
Goodwill | ||||||
The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2013 (table in millions): | ||||||
Balance, January 1, 2013 | $ | 2,848 | ||||
Increase in goodwill related to business combination | 162 | |||||
Contribution to Pivotal (see Note N) | (28 | ) | ||||
Reduction related to business realignment plan | (4 | ) | ||||
Deferred tax adjustments to purchase price allocations on acquisitions | (19 | ) | ||||
Other adjustments to purchase price allocations on acquisitions | (1 | ) | ||||
Balance, September 30, 2013 | $ | 2,958 | ||||
Realignment_Charges
Realignment Charges | 9 Months Ended |
Sep. 30, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Realignment Charges | ' |
C. Realignment Charges | |
Realignment Plan | |
During January 2013, VMware approved and initiated a business realignment plan to streamline its operations. As of the second quarter of 2013, the plan was substantially completed. The associated cash payments are expected to be fully paid out by the end of 2013. | |
The realignment plan included the elimination of approximately 725 positions and personnel across all major functional groups and geographies. The total cash and non-cash charge for workforce reductions of $54 million was recorded on the consolidated statements of income for the nine months ended September 30, 2013. In connection with the realignment plan, VMware also recognized other cash and non-cash costs primarily associated with asset impairments of $10 million during the nine months ended September 30, 2013. Substantially all of the cash-related expenses incurred in connection with the business realignment plan have been paid as of September 30, 2013. | |
Other Related Activities | |
In connection with VMware's business realignment plan, in the three months ended September 30, 2013, VMware sold certain of its assets relating to a previous acquisition, Zimbra, in exchange for cash and equity resulting in a pre-tax gain of $12 million. During the nine months ended September 30, 2013, VMware recognized cumulative pre-tax gains of $44 million relating to the disposition of certain lines of business that were no longer aligned with VMware's core business priorities, including Zimbra. The gains recognized in connection with these dispositions were recorded to other income (expense), net on the consolidated statements of income for the three and nine months ended September 30, 2013. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
D. Earnings per Share | ||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period, as calculated using the treasury stock method. Potentially dilutive securities primarily include unvested restricted stock units, stock options and purchase options under VMware’s employee stock purchase plan. Securities are excluded from the computations of diluted net income per share if their effect would be anti-dilutive. VMware uses the two-class method to calculate earnings per share as both classes share the same rights in dividends, therefore basic and diluted earnings per share are the same for both classes. | ||||||||||||||||
The following table sets forth the computations of basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012 (table in millions, except per share data): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 261 | $ | 157 | $ | 679 | $ | 540 | ||||||||
Weighted-average shares, basic for Class A and Class B | 430 | 427 | 429 | 427 | ||||||||||||
Effect of dilutive securities | 3 | 6 | 4 | 7 | ||||||||||||
Weighted-average shares, diluted for Class A and Class B | 433 | 433 | 433 | 434 | ||||||||||||
Net income per weighted-average share, basic for Class A and Class B | $ | 0.61 | $ | 0.37 | $ | 1.58 | $ | 1.26 | ||||||||
Net income per weighted-average share, diluted for Class A and Class B | $ | 0.6 | $ | 0.36 | $ | 1.57 | $ | 1.24 | ||||||||
For both the three and nine months ended September 30, 2013, stock options to purchase 1 million shares of VMware Class A common stock were excluded from the diluted earnings per share calculations because their effect would have been anti-dilutive. For the three and nine months ended September 30, 2012, the number of stock options to purchase shares of VMware Class A common stock that were excluded from the diluted earnings per share calculations because their effect would have been anti-dilutive was not material. | ||||||||||||||||
For the three months ended September 30, 2013 and 2012, 2 million and 3 million shares, respectively, of restricted stock, and for the nine months ended September 30, 2013 and 2012, 1 million and 2 million shares, respectively, of restricted stock were excluded from the diluted earnings per share calculations because their effect would have been anti-dilutive. |
Investments
Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
E. Investments | ||||||||||||||||
Investments as of September 30, 2013 and December 31, 2012 consisted of the following (tables in millions): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate | |||||||||||||
Fair Value | ||||||||||||||||
U.S. Government and agency obligations | $ | 448 | $ | 1 | $ | — | $ | 449 | ||||||||
U.S. and foreign corporate debt securities | 2,082 | 4 | (3 | ) | 2,083 | |||||||||||
Foreign governments and multi-national agency obligations | 25 | — | — | 25 | ||||||||||||
Municipal obligations | 880 | 3 | (1 | ) | 882 | |||||||||||
Asset-backed securities | 4 | — | — | 4 | ||||||||||||
Mortgage-backed securities | 133 | — | (2 | ) | 131 | |||||||||||
Total investments | $ | 3,572 | $ | 8 | $ | (6 | ) | $ | 3,574 | |||||||
December 31, 2012 | ||||||||||||||||
Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate | |||||||||||||
Fair Value | ||||||||||||||||
U.S. Government and agency obligations | $ | 374 | $ | 1 | $ | — | $ | 375 | ||||||||
U.S. and foreign corporate debt securities | 1,545 | 6 | (1 | ) | 1,550 | |||||||||||
Foreign governments and multi-national agency obligations | 41 | — | — | 41 | ||||||||||||
Municipal obligations | 973 | 3 | — | 976 | ||||||||||||
Asset-backed securities | 1 | — | — | 1 | ||||||||||||
Mortgage-backed securities | 79 | — | — | 79 | ||||||||||||
Total investments | $ | 3,013 | $ | 10 | $ | (1 | ) | $ | 3,022 | |||||||
In addition, VMware evaluated its investments as of September 30, 2013 and December 31, 2012 to determine whether or not any security has experienced an other-than-temporary decline in fair value. During the three months ended September 30, 2013, VMware did not consider any of its investments to be other-than-temporarily impaired. During the nine months ended September 30, 2013, VMware recognized a charge of approximately $13 million as a result of determining that a strategic investment was considered to be other-than-temporarily impaired. All other realized gains and losses on investments in the three and nine months ended September 30, 2013 and 2012 were not material. | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, investments in a continuous unrealized loss position for twelve months or greater were not considered significant. Unrealized losses on investments as of September 30, 2013 and December 31, 2012, which have been in a net loss position for less than twelve months, were classified by investment category as follows (table in millions): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government and agency obligations | $ | 64 | $ | — | $ | 35 | $ | — | ||||||||
U.S. and foreign corporate debt securities | 888 | (3 | ) | 316 | (1 | ) | ||||||||||
Foreign governments and multi-national agency obligations | 16 | — | 5 | — | ||||||||||||
Municipal obligations | 132 | (1 | ) | 259 | — | |||||||||||
Asset-backed securities | 2 | — | — | — | ||||||||||||
Mortgage-backed securities | 110 | (2 | ) | 28 | — | |||||||||||
Total | $ | 1,212 | $ | (6 | ) | $ | 643 | $ | (1 | ) | ||||||
Contractual Maturities | ||||||||||||||||
The contractual maturities of investments held at September 30, 2013 consisted of the following (table in millions): | ||||||||||||||||
Amortized | Aggregate | |||||||||||||||
Cost Basis | Fair Value | |||||||||||||||
Due within one year | $ | 839 | $ | 840 | ||||||||||||
Due after 1 year through 5 years | 2,610 | 2,612 | ||||||||||||||
Due after 5 years | 123 | 122 | ||||||||||||||
Total investments | $ | 3,572 | $ | 3,574 | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Measurements | ' | |||||||||||
F. Fair Value Measurements | ||||||||||||
Certain financial assets and liabilities are measured at fair value on a recurring basis. There have been no transfers between fair value measurement levels during the nine months ended September 30, 2013. | ||||||||||||
The following tables set forth the fair value hierarchy of VMware’s money market funds and available-for-sale securities, including those securities classified within cash and cash equivalents on the consolidated balance sheets, that were required to be measured at fair value as of September 30, 2013 and December 31, 2012 (tables in millions): | ||||||||||||
September 30, 2013 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Money-market funds | $ | 1,817 | $ | — | $ | 1,817 | ||||||
U.S. Government and agency obligations | 331 | 118 | 449 | |||||||||
U.S. and foreign corporate debt securities | — | 2,108 | 2,108 | |||||||||
Foreign governments and multi-national agency obligations | — | 25 | 25 | |||||||||
Municipal obligations | — | 882 | 882 | |||||||||
Asset-backed securities | — | 4 | 4 | |||||||||
Mortgage-backed securities | — | 131 | 131 | |||||||||
Total | $ | 2,148 | $ | 3,268 | $ | 5,416 | ||||||
December 31, 2012 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Money-market funds | $ | 1,125 | $ | — | $ | 1,125 | ||||||
U.S. Government and agency obligations | 250 | 155 | 405 | |||||||||
U.S. and foreign corporate debt securities | — | 1,567 | 1,567 | |||||||||
Foreign governments and multi-national agency obligations | — | 41 | 41 | |||||||||
Municipal obligations | — | 976 | 976 | |||||||||
Asset-backed securities | — | 1 | 1 | |||||||||
Mortgage-backed securities | — | 79 | 79 | |||||||||
Total | $ | 1,375 | $ | 2,819 | $ | 4,194 | ||||||
Fixed income available-for-sale securities consist of high quality, investment-grade securities from diverse issuers. Fair value of fixed income securities are determined based on pricing from pricing vendors who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. VMware’s procedures include controls to ensure that appropriate fair values are recorded such as comparing prices obtained from multiple independent sources. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivatives and Hedging Activities | ' |
G. Derivatives and Hedging Activity | |
VMware conducts business in several foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. To mitigate this risk, VMware enters into hedging activities as described below. The counterparties to VMware’s foreign currency forward contracts are multi-national commercial banks considered to be credit-worthy. VMware does not enter into speculative foreign exchange contracts for trading purposes. | |
Cash Flow Hedging Activities | |
To mitigate its exposure to foreign currency fluctuations resulting from operating expenses denominated in certain foreign currencies, VMware enters into foreign currency forward contracts. The Company designates these forward contracts as cash flow hedging instruments as the accounting criteria for such designation has been met. Therefore, the effective portion of gains or losses resulting from changes in the fair value of these hedges is initially reported in accumulated other comprehensive income (loss) on the consolidated balance sheet and is subsequently reclassified to the related operating expense line item in the consolidated statements of income in the same period that the underlying expenses are incurred. Interest charges or “forward points” on VMware’s forward contracts are excluded from the assessment of hedge effectiveness and are recorded in other income (expense), net in the consolidated statements of income as incurred. | |
VMware generally enters into cash flow hedges semi-annually with maturities of six months or less. As of September 30, 2013 and December 31, 2012, VMware had forward contracts to purchase foreign currency designated as cash flow hedges with a total notional value of $39 million and $9 million, respectively. The fair value of these forward contracts was immaterial as of September 30, 2013 and December 31, 2012, and therefore excluded from the fair value tables above. For the three and nine months ended September 30, 2013, all cash flow hedges were considered effective. | |
Balance Sheet Hedging Activities | |
In order to manage exposure to foreign currency fluctuations, VMware enters into foreign currency forward contracts to hedge a portion of its net outstanding monetary assets and liabilities against movements in certain foreign exchange rates. These forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are reported in other income (expense), net in the consolidated statements of income. | |
VMware’s foreign currency forward contracts are generally traded on a monthly basis with a typical contractual term of one month. As of September 30, 2013 and December 31, 2012, VMware had outstanding forward contracts with a total notional value of $314 million and $440 million, respectively. The fair value of these forward contracts was immaterial as of September 30, 2013 and December 31, 2012 and therefore excluded from the fair value tables above. | |
In the three months ended September 30, 2013 and 2012, VMware recognized losses of $16 million and $6 million, respectively, on its consolidated statements of income for its foreign currency forward contracts. In the nine months ended September 30, 2013, the impact on its consolidated statements of income for its foreign currency forward contracts was not material. In the nine months ended September 30, 2012, VMware recognized a loss of $7 million on its consolidated statements of income for its foreign currency forward contracts. | |
The net impact of the gains and losses on VMware’s foreign currency forward contracts and the gains and losses associated with the underlying foreign-currency denominated assets and liabilities resulted in a net gain of $1 million and a net loss of $1 million in the three months ended September 30, 2013 and 2012, respectively, and net losses of $5 million and $3 million in the nine months ended September 30, 2013 and 2012, respectively. |
Property_And_Equipment_Net
Property And Equipment, Net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property And Equipment, Net | ' | |||||||
H. Property and Equipment, Net | ||||||||
Property and equipment, net, as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Equipment and software | $ | 708 | $ | 636 | ||||
Buildings and improvements | 495 | 438 | ||||||
Furniture and fixtures | 72 | 67 | ||||||
Construction in progress | 180 | 98 | ||||||
Total property and equipment | 1,455 | 1,239 | ||||||
Accumulated depreciation | (662 | ) | (574 | ) | ||||
Total property and equipment, net | $ | 793 | $ | 665 | ||||
Depreciation expense was $36 million and $31 million in the three months ended September 30, 2013 and 2012, respectively. Depreciation expense was $105 million and $97 million in the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
As of September 30, 2013 and December 31, 2012, construction in progress primarily represented buildings and site improvements related to VMware’s Palo Alto campus expansion that had not yet been placed into service. |
Accrued_Expenses_And_Other
Accrued Expenses And Other | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Liabilities [Abstract] | ' | |||||||
Accrued Expenses And Other | ' | |||||||
I. Accrued Expenses and Other | ||||||||
Accrued expenses and other as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Salaries, commissions, bonuses, and benefits | $ | 202 | $ | 292 | ||||
Accrued partner liabilities | 114 | 129 | ||||||
Other | 230 | 253 | ||||||
Total | $ | 546 | $ | 674 | ||||
Accrued partner liabilities relate to rebates and marketing development fund accruals for channel partners, system vendors and systems integrators, as well as accrued royalties. |
Unearned_Revenues
Unearned Revenues | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Unearned Revenues | ' | |||||||
J. Unearned Revenues | ||||||||
Unearned revenues as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Unearned license revenues | $ | 415 | $ | 463 | ||||
Unearned software maintenance revenues | 2,937 | 2,755 | ||||||
Unearned professional services revenues | 284 | 243 | ||||||
Total unearned revenues | $ | 3,636 | $ | 3,461 | ||||
Unearned license revenues are either recognized ratably, recognized upon delivery of existing or future products or services, or will be recognized ratably upon delivery of future products or services. Future products include, in some cases, emerging products that are offered as part of product promotions where the purchaser of an existing product is entitled to receive a promotional product at no additional charge. VMware regularly offers product promotions to improve awareness of its emerging products. To the extent promotional products have not been delivered and vendor-specific objective evidence (“VSOE”) of fair value is not established, revenue for the entire order is deferred until such time as all product delivery obligations have been fulfilled. Unearned license revenue may also be recognized ratably, which is generally due to a right to receive unspecified future products or a lack of VSOE of fair value on the software maintenance element of the arrangement. | ||||||||
Unearned software maintenance revenues are attributable to VMware’s maintenance contracts and are recognized ratably, typically over terms of one to five years. Unearned professional services revenues result primarily from prepaid professional services, including training, and are recognized as the services are delivered. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
K. Income Taxes | |
Although VMware files a consolidated federal tax return with EMC, the income tax provision is calculated under a hybrid method, primarily as though VMware were a separate taxpayer. However, where VMware and EMC are parties to certain discrete transactions outside the normal course of business, the tax consequences of these transactions are determined in accordance with consolidated return rules. Payments between VMware and EMC under the tax sharing agreement primarily relate to VMware’s portion of federal income taxes on EMC’s consolidated tax return. Payments from VMware to EMC primarily relate to periods for which VMware had federal taxable income, while payments from EMC to VMware relate to periods for which VMware had a federal taxable loss. In the nine months ended September 30, 2013, EMC paid VMware $16 million under the tax sharing agreement. No other payments were made either by EMC or VMware under the tax sharing agreement during the three months ended September 30, 2013 and 2012, or during the nine months ended September 30, 2012. The amounts that VMware either pays to or receives from EMC for its portion of federal income taxes on EMC’s consolidated tax return differ from the amounts VMware would owe based on the hybrid method and the difference is presented as a component of stockholders’ equity. For all periods presented, the difference was not material. | |
The Company's effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The rate at which the provision for income taxes is calculated differs from the U.S. federal statutory income tax rate primarily due to differential tax rates in foreign jurisdictions where income is earned and considered to be indefinitely reinvested. | |
VMware’s effective income tax rate was 15.3% and 19.7% for the three months ended September 30, 2013 and 2012, respectively. The effective income tax rate was 11.4% and 14.7% for the nine months ended September 30, 2013 and 2012, respectively. The lower effective rate for the three months ended September 30, 2013 compared with the three months ended September 30, 2012 was primarily attributable to the finalization of the 2012 federal return related to the change in estimate of the U.S. federal research tax credit calculation. The lower effective rate for the nine months ended September 30, 2013 compared with the nine months ended September 30, 2012 was primarily attributable to the discrete tax benefits recognized in the nine months ended September 30, 2013 due to the retroactive enactment of the U.S. federal research tax credit by the U.S. Congress in January 2013. | |
VMware's rate of taxation in foreign jurisdictions is lower than the U.S. tax rate. VMware's international income is primarily earned by VMware's subsidiaries in Ireland, where the statutory tax rate is 12.5%. Management does not believe that any recent or currently expected developments in non-U.S. tax jurisdictions are reasonably likely to have a material impact on VMware's effective tax rate. VMware's intent is to indefinitely reinvest its non-U.S. funds in its foreign operations, and VMware's current plans do not demonstrate a need to repatriate them to fund its U.S. operations. | |
As of September 30, 2013, VMware had gross unrecognized tax benefits totaling $162 million, which excludes $7 million of offsetting tax benefits. Approximately $155 million of VMware’s net unrecognized tax benefits, not including interest and penalties, if recognized, would reduce income tax expense and lower VMware’s effective tax rate in the period or periods recognized. In total, there were $167 million of net unrecognized tax benefits, including interest and penalties, which were classified as a non-current liability on the consolidated balance sheet as of September 30, 2013. It is reasonably possible that within the next 12 months, audit resolutions could potentially reduce total unrecognized tax benefits by approximately $4 million. Due to the closure of tax audits and statutes that lapsed, approximately $6 million of uncertain tax benefits were reversed during the nine months ended September 30, 2013. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. | |
VMware recognizes interest expense and penalties related to income tax matters in the income tax provision. VMware recognized approximately $4 million in interest and penalties for the nine months ended September 30, 2013. Interest and penalties for the three months ended September 30, 2013 were not material. As of September 30, 2013, there were $12 million of interest and penalties accrued for unrecognized tax benefits. These amounts are included as components of the $167 million of net unrecognized tax benefits as of September 30, 2013. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
L. Contingencies | |
Litigation | |
VMware is subject to legal, administrative and regulatory proceedings, claims, demands and investigations in the ordinary course of business, including claims with respect to commercial, product liability, intellectual property, employment, class action, whistleblower and other matters. From time to time, VMware also receives inquiries from government entities regarding the compliance of its contracting and sales practices with applicable regulations. VMware accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. VMware evaluates its claims on a quarterly basis and considers the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of September 30, 2013 and December 31, 2012, the amounts accrued were not material. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, management believes that the amount of any such additional loss would also be immaterial to VMware’s consolidated financial position and results of operations. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
M. Stockholders’ Equity | ||||||||||||||||
VMware Equity Plan and VMware Employee Stock Purchase Plan | ||||||||||||||||
In May 2013, VMware amended its 2007 Equity and Incentive Plan to increase the number of shares available for issuance by 13,300,000 shares. VMware also amended its 2007 Employee Stock Purchase Plan to increase the number of shares available for issuance by 7,900,000 shares. | ||||||||||||||||
VMware Stock Repurchases | ||||||||||||||||
In August 2013, VMware’s Board of Directors authorized the repurchase of up to $700 million of VMware’s Class A common stock through the end of 2015. In November 2012, VMware’s Board of Directors authorized the repurchase of up to $250 million of VMware’s Class A common stock through the end of 2014. In February 2012, VMware’s Board of Directors authorized the repurchase of up to $600 million of VMware’s Class A common stock, which was completed in the second quarter of 2013. From time to time, future stock repurchases may be made pursuant to the August 2013 and November 2012 authorizations in open market transactions or privately negotiated transactions as permitted by securities laws and other legal requirements. VMware is not obligated to purchase any shares under its stock repurchase programs. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including VMware’s stock price, cash requirements for operations and business combinations, corporate and regulatory requirements and other market and economic conditions. Purchases can be discontinued at any time that VMware feels additional purchases are not warranted. All shares repurchased under VMware’s stock repurchase programs are retired. | ||||||||||||||||
The following table summarizes stock repurchase activity in the three and nine months ended September 30, 2013 and 2012 (table in millions, except per share amounts): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Aggregate purchase price | $ | 90 | $ | 129 | $ | 392 | $ | 307 | ||||||||
Class A common shares repurchased | 1 | 1 | 5 | 3 | ||||||||||||
Weighted-average price per share | $ | 73.63 | $ | 88.35 | $ | 75.06 | $ | 92.91 | ||||||||
The amount of repurchased shares includes commissions and was classified as a reduction to additional paid-in capital. As of September 30, 2013, the cumulative authorized amount remaining for repurchase was $775 million. | ||||||||||||||||
VMware Restricted Stock | ||||||||||||||||
VMware restricted stock primarily consists of restricted stock unit (“RSU”) awards granted to employees. RSUs are valued based on the VMware stock price on the date of grant, and shares underlying RSU awards are not issued until the restricted stock units vest. Upon vesting, each RSU converts into one share of VMware Class A common stock. | ||||||||||||||||
VMware restricted stock also includes performance stock unit (“PSU”) awards, which have been granted to certain of VMware's executives and employees. The PSU awards include performance conditions, as well as time-based vesting. Upon vesting, each PSU award will convert into VMware’s Class A common stock at various ratios ranging from 0.5 to 3.0 shares per PSU, depending upon the degree of achievement of the performance target designated by each individual award. If minimum performance thresholds are not achieved, then no shares will be issued. | ||||||||||||||||
The following table summarizes restricted stock activity since January 1, 2013 (units in millions): | ||||||||||||||||
Number of Units | Weighted- | |||||||||||||||
Average Grant | ||||||||||||||||
Date Fair | ||||||||||||||||
Value | ||||||||||||||||
(per unit) | ||||||||||||||||
Outstanding, January 1, 2013 | 12 | $ | 91.93 | |||||||||||||
Granted | 6 | 74.9 | ||||||||||||||
Vested | (3 | ) | 80.36 | |||||||||||||
Forfeited | (2 | ) | 91.01 | |||||||||||||
Outstanding, September 30, 2013 | 13 | 87.23 | ||||||||||||||
As of September 30, 2013, the 13 million of units outstanding included 12 million of RSUs and 1 million of PSUs. | ||||||||||||||||
As of September 30, 2013, restricted stock representing 13 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $1,023 million based on VMware’s closing price as of September 30, 2013. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The changes in components of accumulated other comprehensive income in the nine months ended September 30, 2013 were as follows (table in millions): | ||||||||||||||||
Unrealized Gains on | Losses on | Total | ||||||||||||||
Available-for-Sale Securities | Cash Flow Hedges | |||||||||||||||
Balance, January 1, 2013 | $ | 6 | $ | — | $ | 6 | ||||||||||
Other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | (3 | ) | (1 | ) | (4 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | (1 | ) | — | (1 | ) | |||||||||||
Other comprehensive loss, net | (4 | ) | (1 | ) | (5 | ) | ||||||||||
Balance, September 30, 2013 | $ | 2 | $ | (1 | ) | $ | 1 | |||||||||
Gains (losses) on VMware’s available-for-sale securities are reclassified to investment income on the consolidated statement of income in the same period that they are realized. | ||||||||||||||||
The effective portion of gains (losses) resulting from changes in the fair value of forward contracts designated as cash flow hedging instruments are reclassified to its related operating expense line item on the consolidated statement of income in the same period that the underlying expenses are incurred. The amounts recorded to their related operating expense line items on the consolidated statements of income in the three and nine months ended September 30, 2013 were not material. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Related Party Transactions [Abstract] | ' | |||
Related Party Transactions | ' | |||
N. Related Parties | ||||
EMC Reseller Arrangement, Other Services and Note Payable | ||||
Pursuant to an ongoing reseller arrangement with EMC, EMC bundles VMware’s products and services with EMC’s products and sells them to end-users. In the three months ended September 30, 2013 and 2012, VMware recognized revenues of $37 million and $27 million, respectively, from such contractual arrangement with EMC. In the nine months ended September 30, 2013 and 2012, VMware recognized revenues of $108 million and $88 million, respectively, from such contractual arrangement with EMC. As of September 30, 2013, $162 million of revenues from products and services sold under the reseller arrangement were included in unearned revenues. | ||||
In the three months ended September 30, 2013 and 2012, VMware recognized professional services revenues of $14 million and $21 million, respectively, from such contractual agreements with EMC. In the nine months ended September 30, 2013 and 2012, VMware recognized revenues of $60 million and $63 million, respectively, from such contractual agreements with EMC. As of September 30, 2013, $9 million of revenues from professional services to EMC customers were included in unearned revenues. | ||||
In both the three months ended September 30, 2013 and 2012, VMware recognized revenues of $3 million from products and services purchased by EMC for internal use pursuant to VMware’s contractual agreements with EMC. In the nine months ended September 30, 2013 and 2012, VMware recognized revenues of $9 million and $7 million, respectively, from such contractual agreements with EMC. As of September 30, 2013, $30 million of revenues from products and services purchased by EMC for internal use were included in unearned revenues. | ||||
VMware purchased products and services for internal use from EMC for $20 million and $4 million in the three months ended September 30, 2013 and 2012, respectively, and for $45 million and $28 million in the nine months ended September 30, 2013 and 2012, respectively. | ||||
From time to time, VMware and EMC enter into agreements to collaborate on technology projects. In both the three months ended September 30, 2013 and 2012, VMware received $2 million from EMC for EMC’s portion of expenses related to such projects, and in the nine months ended September 30, 2013 and 2012, VMware received $6 million and $5 million, respectively, from such contractual agreements with EMC. In the three months ended September 30, 2013, VMware paid $5 million to EMC for services provided to VMware by EMC related to such projects, and in the nine months ended September 30, 2013, VMware paid $7 million to EMC for such contractual agreements with EMC. | ||||
In certain geographic regions where VMware does not have an established legal entity, VMware contracts with EMC subsidiaries for support services and EMC personnel who are managed by VMware. The costs incurred by EMC on VMware’s behalf related to these employees are passed on to VMware and VMware is charged a mark-up intended to approximate costs that would have been charged had VMware contracted for such services with an unrelated third party. These costs are included as expenses in VMware’s consolidated statements of income and primarily include salaries, benefits, travel and rent. Additionally, EMC incurs certain administrative costs on VMware’s behalf in the U.S. that are also recorded as expenses in VMware’s consolidated statements of income. The total cost of the services provided to VMware by EMC as described above was $29 million and $26 million in the three months ended September 30, 2013 and 2012, respectively, and $94 million and $75 million in the nine months ended September 30, 2013 and 2012, respectively. | ||||
In both the three months ended September 30, 2013 and 2012, $1 million of interest expense was recorded related to the note payable to EMC and included in interest expense with EMC on VMware’s consolidated statements of income. In the nine months ended September 30, 2013 and 2012, $3 million and $4 million, respectively, of interest expense was recorded related to the note payable to EMC and included in interest expense with EMC on VMware’s consolidated statements of income. VMware’s interest expense as a separate, stand-alone company may be higher or lower than the amounts reflected in the consolidated financial statements. | ||||
Certain Stock-Based Compensation | ||||
Effective September 1, 2012, Pat Gelsinger succeeded Paul Maritz as Chief Executive Officer of VMware. Prior to joining VMware, Pat Gelsinger was the President and Chief Operating Officer of EMC Information Infrastructure Products. Paul Maritz remains a board member of VMware and currently serves as Chief Executive Officer of Pivotal, a majority-owned subsidiary of EMC in which VMware has an ownership interest. Both Paul Maritz and Pat Gelsinger retain and continue to vest in certain of their respective equity awards that they held as of September 1, 2012. Stock-based compensation related to Pat Gelsinger’s EMC awards will be recognized on VMware’s consolidated statements of income over the awards’ remaining requisite service periods. Effective September 1, 2012, stock-based compensation related to Paul Maritz’s VMware awards will not be recognized by VMware. | ||||
Mozy | ||||
In 2011, VMware acquired certain assets relating to EMC’s Mozy cloud-based data storage and data center services, including certain data center assets and a license to certain intellectual property. EMC retained ownership of the Mozy business and its remaining assets and continued to be responsible to Mozy customers for Mozy products and services and to recognize revenue from such products and services. VMware entered into an operational support agreement with EMC through the end of 2012, pursuant to which VMware took over responsibility to operate the Mozy service on behalf of EMC. Pursuant to the support agreement, costs incurred by VMware to support EMC’s Mozy services, plus a mark-up intended to approximate third-party costs and a management fee, were reimbursed to VMware by EMC. In the fourth quarter of 2012, the operational support agreement between VMware and EMC was amended such that VMware would no longer operate the Mozy service on behalf of EMC. Under the amendment, VMware transferred substantially all employees that support Mozy services to EMC and EMC purchased certain assets from VMware in relation to transferred employees. The termination of service and related transfer of employees and sale of assets was substantially completed during the first quarter of 2013. On the consolidated statements of income, such amounts reimbursed by EMC to VMware to operate Mozy were immaterial in the three and nine months ended September 30, 2013, and $17 million and $48 million in the three and nine months ended September 30, 2012, respectively. These amounts were recorded as a reduction to the costs VMware incurred. | ||||
Joint Contribution of Assets with EMC to Pivotal | ||||
On April 1, 2013, VMware transferred certain assets and liabilities to Pivotal. VMware contributed certain assets, including intellectual property, to Pivotal, and Pivotal assumed substantially all liabilities, related to certain of its Cloud Application Platform products and services, including VMware’s Cloud Foundry, VMware vFabric (including Spring and GemFire) and Cetas organizations, except for certain tangible assets related to Cloud Foundry. During the nine months ended September 30, 2013, VMware transferred approximately 415 VMware employees to Pivotal. | ||||
VMware received preferred equity interests in Pivotal equal to approximately 31% of Pivotal’s outstanding shares in exchange for its contributions. Additionally, VMware and Pivotal entered into an agreement pursuant to which VMware will act as the selling agent for the products and services it contributed to Pivotal until at least December 31, 2013 in exchange for a customary agency fee. In the three and nine months ended September 30, 2013, VMware recognized revenues of $2 million and $3 million, respectively, from such contractual arrangement with Pivotal. As of September 30, 2013, $1 million of revenues from such contractual arrangement with Pivotal were included in unearned revenues. VMware also agreed to provide various transition services to Pivotal until at least December 31, 2013. Pursuant to the support agreement, costs incurred by VMware to support Pivotal services are reimbursed to VMware by Pivotal. During the three and nine months ended September 30, 2013, VMware provided transition services of $2 million and $10 million, respectively, that are reimbursable by Pivotal and which were recorded as a reduction to the costs VMware incurred. Additionally, VMware purchased products and services for internal use from Pivotal for $1 million and $6 million in the three and nine months ended September 30, 2013, respectively. | ||||
The book value of all contributed assets and the liabilities assumed by Pivotal, with the exception of intangible assets and goodwill, was based on the book values of those assets and liabilities specific to those particular products and services. For intangible assets and goodwill, the book value contributed was based on the relative fair value of the contributed assets applicable to Pivotal. | ||||
On April 1, 2013, VMware's initial contribution was a net liability of $16 million to Pivotal, which was included in VMware’s consolidated balance sheet as of March 31, 2013. The following table summarizes the assets VMware contributed to Pivotal and the liabilities Pivotal assumed from VMware, including certain adjustments made subsequent to April 1, 2013, which were not material to VMware’s consolidated financial statements (table in millions): | ||||
Accounts receivable | $ | 4 | ||
Property and equipment, net | 1 | |||
Intangible assets | 28 | |||
Goodwill | 28 | |||
Total assets | 61 | |||
Accounts payable, accrued liabilities and other, net | (3 | ) | ||
Unearned revenues | (71 | ) | ||
Total liabilities | (74 | ) | ||
Total liabilities, net assumed by Pivotal | $ | (13 | ) | |
Of the $71 million in unearned revenues assumed by Pivotal on April 1, 2013, $32 million related to unearned license revenues and $39 million related to unearned services revenues. | ||||
VMware's ownership interest in Pivotal is 28% as of September 30, 2013 as a result of investments made by a third-party strategic investor. As Pivotal assumed a net liability from VMware, the investment carried by VMware has a cost basis of zero. Thus the net liability assumed by Pivotal of $13 million as of September 30, 2013 was classified to additional paid-in capital on VMware’s consolidated balance sheet. | ||||
Due To/Due From Related Parties | ||||
As of September 30, 2013, VMware had $16 million net due to related parties, which consisted of $59 million due to EMC and $15 million due to Pivotal, partially offset by $55 million due from EMC and $3 million due from Pivotal. These amounts resulted from the related-party transactions with EMC and Pivotal described above. Additionally, as of September 30, 2013, VMware had a net income tax receivable from EMC of $6 million, which consisted of $9 million due from EMC, partially offset by $3 million due to EMC. Balances due to or from EMC which are unrelated to tax obligations are generally settled in cash within 60 days of each quarter-end. The timing of the tax payments due to and from EMC is governed by the tax sharing agreement with EMC. See Note K to the consolidated financial statements for information regarding tax payments with EMC. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
O. Segment Information | ||||||||||||||||
VMware operates in one operating segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. VMware’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. | ||||||||||||||||
Revenues by geographic area for the three and nine months ended September 30, 2013 and 2012 were as follows (table in millions): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
United States | $ | 614 | $ | 554 | $ | 1,773 | $ | 1,589 | ||||||||
International | 675 | 580 | 1,951 | 1,723 | ||||||||||||
Total | $ | 1,289 | $ | 1,134 | $ | 3,724 | $ | 3,312 | ||||||||
No individual country other than the United States had material revenues for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||
Long-lived assets by geographic area, which primarily include property and equipment, net, as of September 30, 2013 and December 31, 2012 were as follows (table in millions): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
United States | $ | 697 | $ | 563 | ||||||||||||
International | 53 | 51 | ||||||||||||||
Total | $ | 750 | $ | 614 | ||||||||||||
No individual country other than the United States accounted for 10% or more of these assets as of September 30, 2013 and December 31, 2012, respectively. |
Overview_And_Basis_Of_Presenta1
Overview And Basis Of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Acconting Principles | ' |
Accounting Principles | |
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | |
Unaudited Interim Financial Information | |
These accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. In the opinion of management, these unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s consolidated results of operations, financial position and cash flows for the periods presented. Results of operations are not necessarily indicative of the results that may be expected for the full year 2013. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2012 Annual Report on Form 10-K. | |
As of September 30, 2013, EMC Corporation (“EMC”) holds approximately 79.7% of VMware’s outstanding common stock and 97.2% of the combined voting power of VMware’s outstanding common stock, including 43 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. VMware is a majority-owned and controlled subsidiary of EMC, and its results of operations and financial position are consolidated with EMC’s financial statements. VMware and EMC engage in intercompany transactions, including agreements regarding the use of EMC’s and VMware’s intellectual property and real estate, agreements regarding the sale of goods and services to one another, and an agreement for EMC to resell VMware’s products and services to third party customers. In geographic areas where VMware has not established its own subsidiaries, VMware contracts with EMC subsidiaries for support services and for personnel who are managed by VMware. See Note K and N to the consolidated financial statements for further information. | |
The amounts recorded for VMware’s intercompany transactions with EMC and GoPivotal, Inc. (“Pivotal”) may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the financial position, results of operations and cash flows had VMware engaged in such transactions with an unrelated third party during all periods presented. Accordingly, VMware’s historical financial information is not necessarily indicative of what the Company’s results of operations, financial position and cash flows will be in the future if and when VMware contracts at arm’s length with unrelated third parties for the services the Company receives from and provides to EMC and Pivotal. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of VMware and its subsidiaries. All intercompany transactions and balances between VMware and its subsidiaries have been eliminated. All intercompany transactions with EMC and Pivotal in the consolidated statements of cash flows will be settled in cash, and changes in the current intercompany balances are presented as a component of cash flows from operating activities. | |
Use of Accounting Estimates | ' |
Use of Accounting Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting periods, and the disclosure of contingent liabilities at the date of the financial statements. Estimates are used for, but not limited to trade receivable valuation, certain accrued liabilities, useful lives of fixed assets and intangible assets, valuation of acquired intangibles, revenue reserves, income taxes, stock-based compensation and contingencies. Actual results could differ from those estimates. |
Business_Combinations_And_Good1
Business Combinations And Goodwill (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Schedule Of Purchase Price Allocation | ' | |||||
The following table summarizes the initial allocation of the consideration to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date (table in millions): | ||||||
Intangible assets | $ | 32 | ||||
Goodwill | 162 | |||||
Total intangible assets acquired | 194 | |||||
Deferred tax liabilities, net | — | |||||
Other acquired liabilities, net of acquired assets | (10 | ) | ||||
Total net liabilities assumed | (10 | ) | ||||
Fair value of intangible assets acquired and net liabilities assumed | $ | 184 | ||||
Schedule Of Finite-Lived And Indefinite-Lived Intangible Assets Acquired As Part Of Business Combination | ' | |||||
The following table summarizes the fair value of the intangible assets acquired by VMware in conjunction with the acquisition of Virsto (amounts in table in millions): | ||||||
Weighted-Average | Fair Value | |||||
Useful Lives | Amount | |||||
(in years) | ||||||
Purchased technology | 5 | $ | 32 | |||
Total intangible assets, net, excluding goodwill | $ | 32 | ||||
Schedule Of Goodwill | ' | |||||
The following table summarizes the changes in the carrying amount of goodwill for the nine months ended September 30, 2013 (table in millions): | ||||||
Balance, January 1, 2013 | $ | 2,848 | ||||
Increase in goodwill related to business combination | 162 | |||||
Contribution to Pivotal (see Note N) | (28 | ) | ||||
Reduction related to business realignment plan | (4 | ) | ||||
Deferred tax adjustments to purchase price allocations on acquisitions | (19 | ) | ||||
Other adjustments to purchase price allocations on acquisitions | (1 | ) | ||||
Balance, September 30, 2013 | $ | 2,958 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computations of Basic and Diluted Net Income per Share | ' | |||||||||||||||
The following table sets forth the computations of basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012 (table in millions, except per share data): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 261 | $ | 157 | $ | 679 | $ | 540 | ||||||||
Weighted-average shares, basic for Class A and Class B | 430 | 427 | 429 | 427 | ||||||||||||
Effect of dilutive securities | 3 | 6 | 4 | 7 | ||||||||||||
Weighted-average shares, diluted for Class A and Class B | 433 | 433 | 433 | 434 | ||||||||||||
Net income per weighted-average share, basic for Class A and Class B | $ | 0.61 | $ | 0.37 | $ | 1.58 | $ | 1.26 | ||||||||
Net income per weighted-average share, diluted for Class A and Class B | $ | 0.6 | $ | 0.36 | $ | 1.57 | $ | 1.24 | ||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investing in Fixed Income Securities | ' | |||||||||||||||
Investments as of September 30, 2013 and December 31, 2012 consisted of the following (tables in millions): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate | |||||||||||||
Fair Value | ||||||||||||||||
U.S. Government and agency obligations | $ | 448 | $ | 1 | $ | — | $ | 449 | ||||||||
U.S. and foreign corporate debt securities | 2,082 | 4 | (3 | ) | 2,083 | |||||||||||
Foreign governments and multi-national agency obligations | 25 | — | — | 25 | ||||||||||||
Municipal obligations | 880 | 3 | (1 | ) | 882 | |||||||||||
Asset-backed securities | 4 | — | — | 4 | ||||||||||||
Mortgage-backed securities | 133 | — | (2 | ) | 131 | |||||||||||
Total investments | $ | 3,572 | $ | 8 | $ | (6 | ) | $ | 3,574 | |||||||
December 31, 2012 | ||||||||||||||||
Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate | |||||||||||||
Fair Value | ||||||||||||||||
U.S. Government and agency obligations | $ | 374 | $ | 1 | $ | — | $ | 375 | ||||||||
U.S. and foreign corporate debt securities | 1,545 | 6 | (1 | ) | 1,550 | |||||||||||
Foreign governments and multi-national agency obligations | 41 | — | — | 41 | ||||||||||||
Municipal obligations | 973 | 3 | — | 976 | ||||||||||||
Asset-backed securities | 1 | — | — | 1 | ||||||||||||
Mortgage-backed securities | 79 | — | — | 79 | ||||||||||||
Total investments | $ | 3,013 | $ | 10 | $ | (1 | ) | $ | 3,022 | |||||||
Unrealized Losses On Investments | ' | |||||||||||||||
Unrealized losses on investments as of September 30, 2013 and December 31, 2012, which have been in a net loss position for less than twelve months, were classified by investment category as follows (table in millions): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
U.S. Government and agency obligations | $ | 64 | $ | — | $ | 35 | $ | — | ||||||||
U.S. and foreign corporate debt securities | 888 | (3 | ) | 316 | (1 | ) | ||||||||||
Foreign governments and multi-national agency obligations | 16 | — | 5 | — | ||||||||||||
Municipal obligations | 132 | (1 | ) | 259 | — | |||||||||||
Asset-backed securities | 2 | — | — | — | ||||||||||||
Mortgage-backed securities | 110 | (2 | ) | 28 | — | |||||||||||
Total | $ | 1,212 | $ | (6 | ) | $ | 643 | $ | (1 | ) | ||||||
Contractual Maturities Of Investments | ' | |||||||||||||||
The contractual maturities of investments held at September 30, 2013 consisted of the following (table in millions): | ||||||||||||||||
Amortized | Aggregate | |||||||||||||||
Cost Basis | Fair Value | |||||||||||||||
Due within one year | $ | 839 | $ | 840 | ||||||||||||
Due after 1 year through 5 years | 2,610 | 2,612 | ||||||||||||||
Due after 5 years | 123 | 122 | ||||||||||||||
Total investments | $ | 3,572 | $ | 3,574 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Of Money Market Funds And Available-For-Sale Securities Included In Cash And Cash Equivalents | ' | |||||||||||
The following tables set forth the fair value hierarchy of VMware’s money market funds and available-for-sale securities, including those securities classified within cash and cash equivalents on the consolidated balance sheets, that were required to be measured at fair value as of September 30, 2013 and December 31, 2012 (tables in millions): | ||||||||||||
September 30, 2013 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Money-market funds | $ | 1,817 | $ | — | $ | 1,817 | ||||||
U.S. Government and agency obligations | 331 | 118 | 449 | |||||||||
U.S. and foreign corporate debt securities | — | 2,108 | 2,108 | |||||||||
Foreign governments and multi-national agency obligations | — | 25 | 25 | |||||||||
Municipal obligations | — | 882 | 882 | |||||||||
Asset-backed securities | — | 4 | 4 | |||||||||
Mortgage-backed securities | — | 131 | 131 | |||||||||
Total | $ | 2,148 | $ | 3,268 | $ | 5,416 | ||||||
December 31, 2012 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Money-market funds | $ | 1,125 | $ | — | $ | 1,125 | ||||||
U.S. Government and agency obligations | 250 | 155 | 405 | |||||||||
U.S. and foreign corporate debt securities | — | 1,567 | 1,567 | |||||||||
Foreign governments and multi-national agency obligations | — | 41 | 41 | |||||||||
Municipal obligations | — | 976 | 976 | |||||||||
Asset-backed securities | — | 1 | 1 | |||||||||
Mortgage-backed securities | — | 79 | 79 | |||||||||
Total | $ | 1,375 | $ | 2,819 | $ | 4,194 | ||||||
Property_And_Equipment_Net_Tab
Property And Equipment, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components Of Property And Equipment | ' | |||||||
Property and equipment, net, as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Equipment and software | $ | 708 | $ | 636 | ||||
Buildings and improvements | 495 | 438 | ||||||
Furniture and fixtures | 72 | 67 | ||||||
Construction in progress | 180 | 98 | ||||||
Total property and equipment | 1,455 | 1,239 | ||||||
Accumulated depreciation | (662 | ) | (574 | ) | ||||
Total property and equipment, net | $ | 793 | $ | 665 | ||||
Accrued_Expenses_And_Other_Tab
Accrued Expenses And Other (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Liabilities [Abstract] | ' | |||||||
Components Of Accrued Expenses | ' | |||||||
Accrued expenses and other as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Salaries, commissions, bonuses, and benefits | $ | 202 | $ | 292 | ||||
Accrued partner liabilities | 114 | 129 | ||||||
Other | 230 | 253 | ||||||
Total | $ | 546 | $ | 674 | ||||
Unearned_Revenues_Tables
Unearned Revenues (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Unearned Revenues, by Arrangement, Disclosure | ' | |||||||
Unearned revenues as of September 30, 2013 and December 31, 2012 consisted of the following (table in millions): | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Unearned license revenues | $ | 415 | $ | 463 | ||||
Unearned software maintenance revenues | 2,937 | 2,755 | ||||||
Unearned professional services revenues | 284 | 243 | ||||||
Total unearned revenues | $ | 3,636 | $ | 3,461 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stock Repurchase Activity | ' | |||||||||||||||
The following table summarizes stock repurchase activity in the three and nine months ended September 30, 2013 and 2012 (table in millions, except per share amounts): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Aggregate purchase price | $ | 90 | $ | 129 | $ | 392 | $ | 307 | ||||||||
Class A common shares repurchased | 1 | 1 | 5 | 3 | ||||||||||||
Weighted-average price per share | $ | 73.63 | $ | 88.35 | $ | 75.06 | $ | 92.91 | ||||||||
Summary Of Restricted Stock Activity | ' | |||||||||||||||
The following table summarizes restricted stock activity since January 1, 2013 (units in millions): | ||||||||||||||||
Number of Units | Weighted- | |||||||||||||||
Average Grant | ||||||||||||||||
Date Fair | ||||||||||||||||
Value | ||||||||||||||||
(per unit) | ||||||||||||||||
Outstanding, January 1, 2013 | 12 | $ | 91.93 | |||||||||||||
Granted | 6 | 74.9 | ||||||||||||||
Vested | (3 | ) | 80.36 | |||||||||||||
Forfeited | (2 | ) | 91.01 | |||||||||||||
Outstanding, September 30, 2013 | 13 | 87.23 | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
The changes in components of accumulated other comprehensive income in the nine months ended September 30, 2013 were as follows (table in millions): | ||||||||||||||||
Unrealized Gains on | Losses on | Total | ||||||||||||||
Available-for-Sale Securities | Cash Flow Hedges | |||||||||||||||
Balance, January 1, 2013 | $ | 6 | $ | — | $ | 6 | ||||||||||
Other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | (3 | ) | (1 | ) | (4 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | (1 | ) | — | (1 | ) | |||||||||||
Other comprehensive loss, net | (4 | ) | (1 | ) | (5 | ) | ||||||||||
Balance, September 30, 2013 | $ | 2 | $ | (1 | ) | $ | 1 | |||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Related Party Transactions [Abstract] | ' | |||
Schedule Of Recognized Identified Assets Contributed And Liabilities Assumed [Table Text Block] | ' | |||
The following table summarizes the assets VMware contributed to Pivotal and the liabilities Pivotal assumed from VMware, including certain adjustments made subsequent to April 1, 2013, which were not material to VMware’s consolidated financial statements (table in millions): | ||||
Accounts receivable | $ | 4 | ||
Property and equipment, net | 1 | |||
Intangible assets | 28 | |||
Goodwill | 28 | |||
Total assets | 61 | |||
Accounts payable, accrued liabilities and other, net | (3 | ) | ||
Unearned revenues | (71 | ) | ||
Total liabilities | (74 | ) | ||
Total liabilities, net assumed by Pivotal | $ | (13 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule Of Revenues By Geographic Area | ' | |||||||||||||||
Revenues by geographic area for the three and nine months ended September 30, 2013 and 2012 were as follows (table in millions): | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
United States | $ | 614 | $ | 554 | $ | 1,773 | $ | 1,589 | ||||||||
International | 675 | 580 | 1,951 | 1,723 | ||||||||||||
Total | $ | 1,289 | $ | 1,134 | $ | 3,724 | $ | 3,312 | ||||||||
Schedule Of Long-Lived Assets By Geographic Area | ' | |||||||||||||||
Long-lived assets by geographic area, which primarily include property and equipment, net, as of September 30, 2013 and December 31, 2012 were as follows (table in millions): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
United States | $ | 697 | $ | 563 | ||||||||||||
International | 53 | 51 | ||||||||||||||
Total | $ | 750 | $ | 614 | ||||||||||||
Overview_And_Basis_Of_Presenta2
Overview And Basis Of Presentation (Details) (EMC [Member]) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Related Party Transaction [Line Items] | ' |
Shareholders' interest, outstanding ownership percentage of VMware by EMC | 79.70% |
Combined voting power of VMware's outstanding common stock | 97.20% |
Class A Common Stock | ' |
Related Party Transaction [Line Items] | ' |
VMware's outstanding common stock held by EMC | 43 |
Class B Common Stock | ' |
Related Party Transaction [Line Items] | ' |
VMware's outstanding common stock held by EMC | 300 |
Business_Combinations_And_Good2
Business Combinations And Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 15, 2013 |
Virsto [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Consideration Paid For The Acquisition | $0 | $1,242 | $184 | $1,344 | $184 |
Business_Combinations_And_Good3
Business Combinations And Goodwill Purchase Price Allocation (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 15, 2013 |
In Millions, unless otherwise specified | Virsto [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' |
Intangible assets | ' | ' | $32 |
Goodwill | 2,958 | 2,848 | 162 |
Total intangible assets acquired | ' | ' | 194 |
Deferred tax liabilities, net | ' | ' | 0 |
Other acquired liabilities, net of acquired assets | ' | ' | -10 |
Total net liabilities assumed | ' | ' | -10 |
Fair value of intangible assets acquired and net liabilities assumed | ' | ' | $184 |
Business_Combinations_And_Good4
Business Combinations And Goodwill Summary of Intangible Assets Acquired (Details) (Virsto [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 15, 2013 |
Acquired Intangible Assets [Line Items] | ' |
Total intangible assets, net, excluding goodwill | $32 |
Purchased Technology | ' |
Acquired Intangible Assets [Line Items] | ' |
Weighted-average useful lives of acquired intangible assets | '5 years |
Additions to intangible assets related to business combinations | $32 |
Business_Combinations_And_Good5
Business Combinations And Goodwill Changes In Carrying Amount Of Goodwill (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' |
Balance, January 1, 2013 | $2,848 |
Increase in goodwill related to business combination | 162 |
Contribution to Pivotal (see Note N) | -28 |
Reduction related to business realignment plan | -4 |
Deferred tax adjustments to purchase price allocations on acquisitions | -19 |
Other adjustments to purchase price allocations on acquisitions | -1 |
Balance, September 30, 2013 | $2,958 |
Realignment_Charges_Details
Realignment Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
employees | ||||||||
Realignment Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Realignment and related cost, expected number of positions eliminated | ' | ' | 725 | ' | ||||
Realignment charges | $1 | [1] | $0 | [1] | $64 | [1] | $0 | [1] |
Pre-tax gain on disposition of certain lines of business | 12 | ' | 44 | ' | ||||
Workforce Reductions [Member] | ' | ' | ' | ' | ||||
Realignment Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Realignment charges | ' | ' | 54 | [1] | ' | |||
Asset Impairments, Exit Of Facilities And Other Exit Costs [Member] | ' | ' | ' | ' | ||||
Realignment Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Realignment charges | ' | ' | $10 | [1] | ' | |||
[1] | Includes stock-based compensation as follows: Cost of license revenues $1 $0 $2 $1, Cost of services revenues $7 $8 $21 $21, Research and development $52 $60 $165 $148 Sales and marketing $37 $52 $106 $111, General and administrative $16 $12 $42 $34, Realignment charges $0 $0 $6 $0. |
Earnings_Per_Share_Computation
Earnings Per Share (Computations Of Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $261 | $157 | $679 | $540 |
Weighted-average shares, basic for Class A and Class B | 430 | 427 | 429 | 427 |
Effect of dilutive securities | 3 | 6 | 4 | 7 |
Weighted-average shares, diluted for Class A and Class B | 433 | 433 | 433 | 434 |
Net income per weighted-average share, basic for Class A and Class B | $0.61 | $0.37 | $1.58 | $1.26 |
Net income per weighted-average share, diluted for Class A and Class B | $0.60 | $0.36 | $1.57 | $1.24 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Class A Common Stock) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options | ' | ' | ' | ' |
Anti-dilutive shares excluded from computation of earnings per share | 1 | ' | 1 | ' |
Restricted Stock | ' | ' | ' | ' |
Anti-dilutive shares excluded from computation of earnings per share | 2 | 3 | 1 | 2 |
Investments_Investing_In_Fixed
Investments (Investing In Fixed Income Securities) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | $3,572 | $3,013 |
Unrealized gains | 8 | 10 |
Unrealized losses | -6 | -1 |
Total investments, aggregate fair value | 3,574 | ' |
Short-term investments | 3,574 | 3,022 |
Unrealized Losses Indicating Other-Than-Temporary Impairment | 0 | 0 |
Charge recognized for other-than-temporarily impaired strategic investment | 13 | ' |
U.S. Government And Agency Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 448 | 374 |
Unrealized gains | 1 | 1 |
Unrealized losses | 0 | 0 |
Total investments, aggregate fair value | 449 | 375 |
U.S. And Foreign Corporate Debt Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 2,082 | 1,545 |
Unrealized gains | 4 | 6 |
Unrealized losses | -3 | -1 |
Total investments, aggregate fair value | 2,083 | 1,550 |
Foreign Governments And Multi-National Agency Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 25 | 41 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Total investments, aggregate fair value | 25 | 41 |
Municipal Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 880 | 973 |
Unrealized gains | 3 | 3 |
Unrealized losses | -1 | 0 |
Total investments, aggregate fair value | 882 | 976 |
Asset-Backed Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 4 | 1 |
Unrealized gains | 0 | 0 |
Unrealized losses | 0 | 0 |
Total investments, aggregate fair value | 4 | 1 |
Mortgage-Backed Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Cost or amortized cost | 133 | 79 |
Unrealized gains | 0 | 0 |
Unrealized losses | -2 | 0 |
Total investments, aggregate fair value | $131 | $79 |
Investments_Unrealized_Losses_
Investments (Unrealized Losses On Investments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Fair value | $1,212 | $643 |
Unrealized losses | -6 | -1 |
U.S. Government And Agency Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 64 | 35 |
Unrealized losses | 0 | 0 |
U.S. And Foreign Corporate Debt Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 888 | 316 |
Unrealized losses | -3 | -1 |
Foreign Governments And Multi-National Agency Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 16 | 5 |
Unrealized losses | 0 | 0 |
Municipal Obligations [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 132 | 259 |
Unrealized losses | -1 | 0 |
Asset-Backed Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 2 | 0 |
Unrealized losses | 0 | 0 |
Mortgage-Backed Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair value | 110 | 28 |
Unrealized losses | ($2) | $0 |
Investments_Contractual_Maturi
Investments (Contractual Maturity Of Investments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Due within one year, amortized cost basis | $839 | ' |
Due after 1 year through 5 years, amortized cost basis | 2,610 | ' |
Due after 5 years, amortized cost basis | 123 | ' |
Total investments, amortized cost basis | 3,572 | 3,013 |
Due within one year, aggregate fair value | 840 | ' |
Due after 1 year through 5 years, aggregate fair value | 2,612 | ' |
Due after 5 years, aggregate fair value | 122 | ' |
Total investments, aggregate fair value | $3,574 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Of Money Market Funds And Available-For-Sale Securities Included In Cash And Cash Equivalents) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | $3,574 | ' |
Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Total cash equivalents and investments | 2,148 | 1,375 |
Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Total cash equivalents and investments | 3,268 | 2,819 |
Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Total cash equivalents and investments | 5,416 | 4,194 |
U.S. Government And Agency Obligations [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 449 | 375 |
U.S. Government And Agency Obligations [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 331 | 250 |
U.S. Government And Agency Obligations [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 118 | 155 |
U.S. Government And Agency Obligations [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 449 | 405 |
U.S. And Foreign Corporate Debt Securities [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 2,083 | 1,550 |
U.S. And Foreign Corporate Debt Securities [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 0 | 0 |
U.S. And Foreign Corporate Debt Securities [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 2,108 | 1,567 |
U.S. And Foreign Corporate Debt Securities [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 2,108 | 1,567 |
Foreign Governments And Multi-National Agency Obligations [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 25 | 41 |
Foreign Governments And Multi-National Agency Obligations [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 0 | 0 |
Foreign Governments And Multi-National Agency Obligations [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 25 | 41 |
Foreign Governments And Multi-National Agency Obligations [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 25 | 41 |
Municipal Obligations [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 882 | 976 |
Municipal Obligations [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 0 | 0 |
Municipal Obligations [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 882 | 976 |
Municipal Obligations [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 882 | 976 |
Asset-Backed Securities [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 4 | 1 |
Asset-Backed Securities [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 0 | 0 |
Asset-Backed Securities [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 4 | 1 |
Asset-Backed Securities [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 4 | 1 |
Mortgage-Backed Securities [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 131 | 79 |
Mortgage-Backed Securities [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 0 | 0 |
Mortgage-Backed Securities [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 131 | 79 |
Mortgage-Backed Securities [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale securities | 131 | 79 |
Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Money-market funds | 1,817 | 1,125 |
Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Money-market funds | 0 | 0 |
Money Market Funds [Member] | Total [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Money-market funds | $1,817 | $1,125 |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Details) (Foreign Exchange Forward [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Not Designated As Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Notional amount of foreign currency cash flow hedge derivatives | $314 | ' | $314 | ' | $440 |
Maturity of foreign currency derivatives | ' | ' | '1 month | ' | ' |
Derivative instruments, loss recognized in income, net | -16 | -6 | ' | -7 | ' |
Derivative instruments & underlying, gain (loss) recognized in income, net | 1 | -1 | -5 | -3 | ' |
Cash Flow Hedging [Member] | Designated As Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Maximum length of time hedged in price risk cash flow hedge | ' | ' | '6 months | ' | ' |
Notional amount of foreign currency cash flow hedge derivatives | $39 | ' | $39 | ' | $9 |
Property_And_Equipment_Net_Com
Property And Equipment, Net (Components Of Property And Equipment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Equipment and software | $708 | $636 |
Buildings and improvements | 495 | 438 |
Furniture and fixtures | 72 | 67 |
Construction in progress | 180 | 98 |
Total property and equipment | 1,455 | 1,239 |
Accumulated depreciation | -662 | -574 |
Total property and equipment, net | $793 | $665 |
Property_And_Equipment_Net_Nar
Property And Equipment, Net (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $36 | $31 | $105 | $97 |
Accrued_Expenses_And_Other_Com
Accrued Expenses And Other (Components Of Accrued Expenses) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ' | ' |
Salaries, commissions, bonuses and benefits | $202 | $292 |
Accrued partner liabilities | 114 | 129 |
Other | 230 | 253 |
Total | $546 | $674 |
Unearned_Revenues_Summary_of_U
Unearned Revenues (Summary of Unearned Revenues) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Unearned Revenue Arrangement [Line Items] | ' | ' |
Unearned revenues | $3,636 | $3,461 |
Revenue recognition, maintenance contract agreements, contractual term, minimum | '1 year | ' |
Revenue recognition, maintenance contract agreements, contractual term, maximum | '5 years | ' |
Unearned License Revenues [Member] | ' | ' |
Unearned Revenue Arrangement [Line Items] | ' | ' |
Unearned revenues | 415 | 463 |
Unearned Software Maintenance Revenues [Member] | ' | ' |
Unearned Revenue Arrangement [Line Items] | ' | ' |
Unearned revenues | 2,937 | 2,755 |
Unearned Professional Services Revenues [Member] | ' | ' |
Unearned Revenue Arrangement [Line Items] | ' | ' |
Unearned revenues | $284 | $243 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Effective income tax rate, continuing operations | 15.30% | 19.70% | 11.40% | 14.70% |
Unrecognized tax benefits, excluding offsetting tax benefits | $162 | ' | $162 | ' |
Offsetting tax benefits not recognized | 7 | ' | 7 | ' |
Unrecognized tax benefits that would impact effective tax rate, excluding interest and penalties | 155 | ' | 155 | ' |
Unrecognized tax benefits that would impact effective tax rate, including interest and penalties | 167 | ' | 167 | ' |
Reduction in total unrecognized tax benefits reasonably possible within next 12 months, minimum | -4 | ' | -4 | ' |
Uncertain tax benefits, reversal resulting from closure of tax audits and statutes that lapsed | ' | ' | 6 | ' |
Unrecognized tax benefits, interest and penalties on income tax expense | ' | ' | 4 | ' |
Unrecognized tax benefits, interest and penalties on income taxes accrued | 12 | ' | 12 | ' |
International [Member] | Ireland [Member] | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign statutory income tax rate, Ireland | 12.50% | ' | ' | ' |
Tax Sharing Agreement [Member] | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Receipt of income tax from EMC | $0 | 0 | $16 | 0 |
Income_Taxes_Parenthetical_Det
Income Taxes (Parenthetical) (Details) (Tax Sharing Agreement [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Tax Sharing Agreement [Member] | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Payment of income tax to EMC | $0 | $0 | $0 | $0 |
Receipt of income tax from EMC | $0 | $0 | $16 | $0 |
Stockholders_Equity_VMware_Equ
Stockholders' Equity (VMware Equity Plan And VMware Employee Stock Purchase Plan) (Details) | 1 Months Ended |
31-May-13 | |
VMware 2007 Equity And Incentive Plan [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Increase in the number of shares available for issuance (shares) | 13,300,000 |
VMware Employee Stock Purchase Plan [Member] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Increase in the number of shares available for issuance (shares) | 7,900,000 |
Stockholders_Equity_Stock_Repu
Stockholders' Equity (Stock Repurchase Program) (Details) (USD $) | 28 Months Ended | 25 Months Ended | 16 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
August 2013 Stock Repurchase Program [Member] [Domain] | November 2012 Stock Repurchase Program [Member] | February 2012 Stock Repurchase Program [Member] | Class A Common Stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | |
VMware Repurchase Program [Member] | VMware Repurchase Program [Member] | VMware Repurchase Program [Member] | VMware Repurchase Program [Member] | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Authorized repurchase amount under stock repurchase program | $700 | $250 | $600 | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | 90 | 129 | 392 | 307 |
Class A common shares repurchased (shares) | ' | ' | ' | 1 | 1 | 5 | 3 |
Weighted-average price per share (US$ per share) | ' | ' | ' | $73.63 | $88.35 | $75.06 | $92.91 |
Authorized amount remaining for repurchase | ' | ' | ' | $775 | ' | ' | ' |
Stockholders_Equity_Summary_Of
Stockholders' Equity (Summary Of Restricted Stock Activity) (Details) (Class A Common Stock, USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Non-Vested [Roll Forward] | ' |
Outstanding, weighted-average grant date fair value (per share) | $91.93 |
Outstanding, number of shares | 12,000,000 |
Granted, weighted-average grant date fair value (per share) | $74.90 |
Granted, number of shares | 6,000,000 |
Vested, weighted-average grant date fair value (per share) | $80.36 |
Vested, number of shares | -3,000,000 |
Forfeited, weighted-average grant date fair value (per share) | $91.01 |
Forfeited, number of shares | -2,000,000 |
Outstanding, weighted-average grant date fair falue (per share) | $87.23 |
Outstanding, number of shares | 13,000,000 |
Aggregate intrinsic value | $1,023 |
Restricted Stock Units (RSUs) | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Non-Vested [Roll Forward] | ' |
Outstanding, number of shares | 12,000,000 |
Performance Stock Units (PSUs) | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Non-Vested [Roll Forward] | ' |
Outstanding, number of shares | 1,000,000 |
Minimum [Member] | Performance Stock Units (PSUs) | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Performance stock units to Class A common stock, conversion ratio | 0.5 |
Maximum [Member] | Performance Stock Units (PSUs) | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | ' |
Performance stock units to Class A common stock, conversion ratio | 3 |
Stockholders_Equity_Accumulate
Stockholders' Equity (Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Balance, January 1, 2013 | ' | ' | $6 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | ' | ' | -4 | ' |
Amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | ' | ' | -1 | ' |
Total other comprehensive loss, net | 5 | 5 | -5 | 7 |
Balance, September 30, 2013 | 1 | ' | 1 | ' |
Unrealized Gains On Available-For-Sale Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Balance, January 1, 2013 | ' | ' | 6 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | ' | ' | -3 | ' |
Amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | ' | ' | -1 | ' |
Total other comprehensive loss, net | ' | ' | -4 | ' |
Balance, September 30, 2013 | 2 | ' | 2 | ' |
Losses On Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Balance, January 1, 2013 | ' | ' | 0 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | ' | ' | -1 | ' |
Amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | ' | ' | 0 | ' |
Total other comprehensive loss, net | ' | ' | -1 | ' |
Balance, September 30, 2013 | ($1) | ' | ($1) | ' |
Stockholders_Equity_Accumulate1
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Parenthetical) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income [Line Items] | ' |
Tax effect on other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | ($2) |
Tax effect on amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | -1 |
Unrealized Gains On Available-For-Sale Securities [Member] | ' |
Accumulated Other Comprehensive Income [Line Items] | ' |
Tax effect on other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | -2 |
Tax effect on amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | -1 |
Losses On Cash Flow Hedges [Member] | ' |
Accumulated Other Comprehensive Income [Line Items] | ' |
Tax effect on other comprehensive loss before reclassifications, net of taxes of $(2), $0 and $(2) | 0 |
Tax effect on amounts reclassified from accumulated other comprehensive income to the consolidated statement of income, net of taxes of $(1), $0 and $(1) | $0 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 01, 2013 |
EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | Pivotal [Member] | Pivotal [Member] | Product Sold Pursuant To Reseller Arrangement [Member] | Product Sold Pursuant To Reseller Arrangement [Member] | Product Sold Pursuant To Reseller Arrangement [Member] | Product Sold Pursuant To Reseller Arrangement [Member] | Professional Services [Member] | Professional Services [Member] | Professional Services [Member] | Professional Services [Member] | Products And Services For EMC's Internal Use [Member] | Products And Services For EMC's Internal Use [Member] | Products And Services For EMC's Internal Use [Member] | Products And Services For EMC's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Products And Services For VMware's Internal Use [Member] | Collaborative Arrangement [Member] | Collaborative Arrangement [Member] | Collaborative Arrangement [Member] | Collaborative Arrangement [Member] | Cost Reimbursement from Related Party Pursuant to Support Agreement [Member] | Cost Reimbursement from Related Party Pursuant to Support Agreement [Member] | Cost Reimbursement from Related Party Pursuant to Support Agreement [Member] | Cost Reimbursement from Related Party Pursuant to Support Agreement [Member] | Collaborative Arrangement, Contribution Of Assets [Member] | Collaborative Arrangement, Contribution Of Assets [Member] | Collaborative Arrangement, Contribution Of Assets [Member] | Collaborative Arrangement, Contribution Of Assets [Member] | Collaborative Arrangement, Contribution Of Assets [Member] | ||||||
EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | Pivotal [Member] | Pivotal [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | EMC [Member] | Pivotal [Member] | Pivotal [Member] | Pivotal [Member] | Pivotal [Member] | VMware [Member] | Unearned Revenues [Member] | Unearned Revenues [Member] | ||||||||||||
employees | Pivotal [Member] | Pivotal [Member] | ||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | $3 | $37 | $27 | $108 | $88 | $14 | $21 | $60 | $63 | $3 | $3 | $9 | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 4 | 45 | 28 | 1 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, expenses from transactions with related party | ' | ' | ' | ' | ' | 29 | 26 | 94 | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense with EMC | -1 | -1 | -3 | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, amounts of transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 6 | 5 | 17 | 48 | 2 | 10 | ' | ' | ' | ' | ' |
Due from related party | ' | ' | ' | ' | ' | 55 | ' | 55 | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Income Tax Receivable Due From Related Party, Net | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Income Tax Receivable Due From Related Party | 9 | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Income Tax Payable Due to Related Party | -3 | ' | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to related party | ' | ' | ' | ' | ' | 59 | ' | 59 | ' | 15 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, other than tax obligation due to or from related party, cash settlement period | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unearned revenues | 3,636 | ' | 3,636 | ' | 3,461 | ' | ' | ' | ' | 1 | 1 | 162 | ' | 162 | ' | 9 | ' | 9 | ' | 30 | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transactions, employees transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415 | ' | ' |
Ownership percentage of Pivotal, pre-additional investor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | ' | ' |
Cost basis of investment in Pivotal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Contributed capital at cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -16 | ' | -71 | -71 |
Due to related parties, net | $16 | ' | $16 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage of Pivotal, post-additional investor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.00% | ' | ' |
Related_Party_Transactions_Sch
Related Party Transactions Schedule of Assets Contributed and Liabilities Assumed (Details) (Collaborative Arrangement, Contribution Of Assets [Member], Pivotal [Member], USD $) | Sep. 30, 2013 | Apr. 01, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | ($13) | ($16) |
Unearned Revenue [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | -71 | -71 |
Accounts Receivable [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | 4 | ' |
Property And Equipment, Net [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | 1 | ' |
Intangible Assets [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | 28 | ' |
Goodwill [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | 28 | ' |
Total Assets [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | 61 | ' |
Accounts Payable, Accrued Liabilities And Other, Net [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | -3 | ' |
Total Liabilities [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | -74 | ' |
Unearned License Revenues [Member] | Unearned Revenue [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | ' | -32 |
Unearned Service Revenues [Domain] | Unearned Revenue [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Contributed capital at cost | ' | ($39) |
Segment_Information_Schedule_O
Segment Information (Schedule Of Revenues By Geographic Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' |
Revenues | $1,289 | $1,134 | $3,724 | $3,312 |
United States [Member] | ' | ' | ' | ' |
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | 614 | 554 | 1,773 | 1,589 |
International [Member] | ' | ' | ' | ' |
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenues | $675 | $580 | $1,951 | $1,723 |
Number of other countries accounted for material revenues | 0 | 0 | 0 | 0 |
Segment_Information_Schedule_O1
Segment Information (Schedule Of Long-Lived Assets By Geographic Area) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets by geographic area | $750 | $614 |
United States [Member] | ' | ' |
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets by geographic area | 697 | 563 |
International [Member] | ' | ' |
Revenues From External Customers And Long-Lived Assets [Line Items] | ' | ' |
Long-lived assets by geographic area | $53 | $51 |
Number of other countries accounted for ten percent or more of total assets | 0 | 0 |