Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | VMWARE, INC. | |
Entity Central Index Key | 1,124,610 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 124,272,592 | |
Class B Convertible Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 300,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues: | |||
License | $ 572 | $ 576 | |
Services | 1,017 | 935 | |
Total revenues | 1,589 | 1,511 | |
Operating expenses: | |||
Cost of license revenues | [1] | 40 | 50 |
Cost of services revenues | [1] | 211 | 193 |
Research and development | [1] | 356 | 305 |
Sales and marketing | [1] | 565 | 536 |
General and administrative | [1] | 172 | 187 |
Realignment charges | [1] | 53 | 22 |
Operating income | 192 | 218 | |
Investment income | 16 | 12 | |
Interest expense with EMC | (7) | (6) | |
Other income (expense), net | (1) | (2) | |
Income before income taxes | 200 | 222 | |
Income tax provision | 39 | 26 | |
Net income | $ 161 | $ 196 | |
Net income per weighted-average share, basic for Class A and Class B (USD per share) | $ 0.38 | $ 0.46 | |
Net income per weighted-average share, diluted for Class A and Class B (USD per share) | $ 0.38 | $ 0.45 | |
Weighted-average shares, basic for Class A and Class B (shares) | 423,230 | 427,962 | |
Weighted-average shares, diluted for Class A and Class B (shares) | 424,180 | 430,496 | |
Cost of license revenues | |||
Operating expenses: | |||
Stock-based compensation | $ 1 | $ 1 | |
Cost of services revenues | |||
Operating expenses: | |||
Stock-based compensation | 12 | 11 | |
Research and development | |||
Operating expenses: | |||
Stock-based compensation | 70 | 54 | |
Sales and marketing | |||
Operating expenses: | |||
Stock-based compensation | 49 | 39 | |
General and administrative | |||
Operating expenses: | |||
Stock-based compensation | $ 18 | $ 14 | |
[1] | Includes stock-based compensation as follows: Cost of license revenues $1 $1, Cost of services revenues $12 $11, Research and development $70 $54, Sales and marketing $49 $39, General and administrative $18 $14. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 161 | $ 196 |
Changes in market value of available-for-sale securities: | ||
Unrealized gains (losses), net of taxes of $11 and $4 | 18 | 6 |
Changes in market value of effective foreign currency forward contracts: | ||
Unrealized gains (losses), net of taxes of $0 for all periods | 2 | (5) |
Total other comprehensive income (loss) | 20 | 1 |
Total comprehensive income (loss), net of taxes | $ 181 | $ 197 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on unrealized gains (losses) on available-for-sale securities | $ 11 | $ 4 |
Tax effect on unrealized gains (losses) on effective foreign currency forward contracts | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,785 | $ 2,493 |
Short-term investments | 5,461 | 5,016 |
Accounts receivable, net of allowance for doubtful accounts of $2 and $2 | 1,089 | 1,633 |
Due from related parties, net | 12 | 74 |
Other current assets | 147 | 144 |
Total current assets | 9,494 | 9,360 |
Property and equipment, net | 1,108 | 1,128 |
Other assets | 195 | 193 |
Deferred tax assets | 464 | 456 |
Intangible assets, net | 582 | 616 |
Goodwill | 3,993 | 3,993 |
Total assets | 15,836 | 15,746 |
Current liabilities: | ||
Accounts payable | 106 | 138 |
Accrued expenses and other | 622 | 746 |
Unearned revenues | 3,181 | 3,245 |
Total current liabilities | 3,909 | 4,129 |
Notes payable to EMC | 1,500 | 1,500 |
Unearned revenues | 1,795 | 1,831 |
Other liabilities | 361 | 363 |
Total liabilities | $ 7,565 | $ 7,823 |
Contingencies | ||
Stockholders’ equity: | ||
Additional paid-in capital | $ 2,897 | $ 2,728 |
Accumulated other comprehensive income (loss) | 12 | (8) |
Retained earnings | 5,356 | 5,195 |
Total VMware, Inc.’s stockholders’ equity | 8,269 | 7,919 |
Non-controlling interests | 2 | 4 |
Total stockholders’ equity | 8,271 | 7,923 |
Total liabilities and stockholders’ equity | 15,836 | 15,746 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 1 | 1 |
Class B Convertible Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 3 | $ 3 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 2 | $ 2 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (shares) | 124,086,000 | 121,947,000 |
Common stock, shares outstanding (shares) | 124,086,000 | 121,947,000 |
Class B Convertible Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 300,000,000 | 300,000,000 |
Common stock, shares outstanding (shares) | 300,000,000 | 300,000,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 161 | $ 196 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 88 | 76 |
Stock-based compensation | 150 | 119 |
Excess tax benefits from stock-based compensation | 0 | (2) |
Deferred income taxes, net | (18) | (15) |
Impairment of strategic investments | 5 | 0 |
Other | 1 | 0 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 544 | 531 |
Other assets | (5) | 0 |
Due to/from related parties, net | 63 | 52 |
Accounts payable | (28) | (49) |
Accrued expenses | (118) | (102) |
Income taxes payable | (23) | (32) |
Unearned revenues | (100) | (91) |
Net cash provided by operating activities | 720 | 683 |
Investing activities: | ||
Additions to property and equipment | (41) | (106) |
Purchases of available-for-sale securities | (1,124) | (1,027) |
Sales of available-for-sale securities | 420 | 501 |
Maturities of available-for-sale securities | 286 | 255 |
Proceeds from disposal of assets | 3 | 0 |
Purchases of strategic investments | (2) | 0 |
Business acquisitions, net of cash acquired | 0 | (21) |
Decrease in restricted cash | 2 | 1 |
Net cash used in investing activities | (456) | (397) |
Financing activities: | ||
Proceeds from issuance of common stock | 52 | 54 |
Repurchase of common stock | 0 | (438) |
Excess tax benefits from stock-based compensation | 0 | 2 |
Shares repurchased for tax withholdings on vesting of restricted stock | (24) | (34) |
Net cash provided by (used in) financing activities | 28 | (416) |
Net increase (decrease) in cash and cash equivalents | 292 | (130) |
Cash and cash equivalents at beginning of the period | 2,493 | 2,071 |
Cash and cash equivalents at end of the period | 2,785 | 1,941 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 7 | 7 |
Cash paid for taxes, net | 63 | 74 |
Non-cash items: | ||
Changes in capital additions, accrued but not paid | $ (3) | $ (42) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Company and Background VMware, Inc. ("VMware" or the "Company") is a leader in virtualization and cloud infrastructure solutions that enable businesses to transform the way they build, deliver and consume information technology ("IT") resources in a manner that is based on their specific needs. VMware’s virtualization infrastructure solutions, which include a suite of products and services designed to deliver a software-defined data center, run on industry-standard desktop computers, servers and mobile devices 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 The accompanying unaudited condensed 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 condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s condensed 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 2016. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2015 Annual Report on Form 10-K. As of March 31, 2016 , EMC held 80.9% of VMware’s outstanding common stock and 97.4% 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. On October 12, 2015, Dell Inc. ("Dell"), Denali Holding Inc. ("Denali") and EMC entered into a definitive merger agreement under which Denali has agreed to acquire EMC (the "Dell Acquisition"). Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with EMC may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the results of operations, financial position 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. Principles of Consolidation The condensed consolidated financial statements include the accounts of VMware and subsidiaries in which VMware has a controlling financial interest. Non-controlling interests are presented as a separate component within total stockholders’ equity and represent the equity and cumulative pro-rata share of the results of operations attributable to the non-controlling interests. The portion of results of operations attributable to the non-controlling interests is eliminated in other income (expense), net on the condensed consolidated statements of income and is not presented separately as the amount was not material for the periods presented. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with EMC and its subsidiaries are generally settled in cash and are classified on the condensed consolidated statements of cash flows based upon the nature of the underlying transaction. 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, marketing development funds and rebates, useful lives assigned to fixed assets and intangible assets, valuation of goodwill and definite-lived intangibles, income taxes, stock-based compensation, and contingencies. Actual results could differ from those estimates. New Accounting Pronouncements During March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation—Stock Compensation (Topic 718), which impacts the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated standard is effective for interim and annual periods beginning after December 15, 2016 and permits early adoption in any interim or annual period. The Company is currently evaluating the effect that ASU 2016-09 will have on its consolidated financial statements and related disclosures. During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. This ASU also requires additional disclosure regarding leasing arrangements. The updated lease standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures, and expects that most of its lease commitments will be subject to the updated standard and recognized as lease liabilities and right-of-use assets upon adoption of ASU 2016-02. During May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The updated revenue standard establishes principles for recognizing revenue and develops a common revenue standard for all industries. In 2016, the FASB issued ASU 2016-08 and ASU 2016-10, which provide interpretive clarifications on the new guidance in Topic 606. The updates are effective for the Company in the first quarter of 2018 and permit the use of either the retrospective or cumulative effect transition method. Early adoption is permitted, but not earlier than the first quarter of 2017. The Company has not selected a transition method and is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
Definite-Lived Intangible Asset
Definite-Lived Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Definite-Lived Intangible Assets, Net | Definite-Lived Intangible Assets, Net Definite-Lived Intangible Assets, Net As of March 31, 2016 and December 31, 2015 , definite-lived intangible assets consisted of the following (amounts in tables in millions): March 31, 2016 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 646 $ (320 ) $ 326 Leasehold interest 34.9 149 (21 ) 128 Customer relationships and customer lists 8.3 134 (52 ) 82 Trademarks and tradenames 8.6 61 (18 ) 43 Other 5.5 5 (2 ) 3 Total definite-lived intangible assets $ 995 $ (413 ) $ 582 December 31, 2015 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 648 $ (298 ) $ 350 Leasehold interest 34.9 149 (20 ) 129 Customer relationships and customer lists 8.4 148 (62 ) 86 Trademarks and tradenames 8.6 61 (16 ) 45 Other 2.9 20 (14 ) 6 Total definite-lived intangible assets $ 1,026 $ (410 ) $ 616 Amortization expense on definite-lived intangible assets was $34 million and $37 million during the three months ended March 31, 2016 and 2015 , respectively. Based on intangible assets recorded as of March 31, 2016 and assuming no subsequent additions or impairment of underlying assets, the remaining estimated annual amortization expense is expected to be as follows (table in millions): Remainder of 2016 $ 95 2017 122 2018 109 2019 88 2020 38 Thereafter 130 Total $ 582 |
Realignment Charges
Realignment Charges | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Realignment Charges | Realignment Charges On January 22, 2016, VMware approved a plan to streamline its operations, with plans to reinvest the associated savings in field, technical and support resources associated with growth products. As a result of these actions, approximately 800 positions were eliminated during the three months ended March 31, 2016 . VMware recognized $50 million of severance-related realignment charges during the three months ended March 31, 2016 on the condensed consolidated statements of income. Additionally, VMware is in the process of consolidating certain facilities as part of this plan, which resulted in the recognition of $3 million of related charges during the three months ended March 31, 2016 on the condensed consolidated statements of income. As of March 31, 2016 , $30 million remained in accrued expenses and other on the condensed consolidated balance sheets, which is generally expected to be paid during 2016. Actions associated with the plan are expected to be completed by June 30, 2016. Additional charges to be incurred in future quarters associated with this plan are not expected to be material. During the three months ended March 31, 2015, VMware eliminated approximately 350 positions across all major functional groups and geographies to streamline its operations. As a result of these actions, $22 million of severance-related realignment charges were recognized during the three months ended March 31, 2015 on the condensed consolidated statements of income. The following table summarizes the activity for the accrued realignment charges for the three months ended March 31, 2016 and 2015 (tables in millions): For the Three Months Ended March 31, 2016 Balance as of January 1, 2016 Realignment Charges Utilization Balance as of March 31, 2016 Severance-related costs $ 3 $ 50 $ (26 ) $ 27 Costs to exit facilities — 3 — 3 Total $ 3 $ 53 $ (26 ) $ 30 For the Three Months Ended March 31, 2015 Balance as of January 1, 2015 Realignment Charges Utilization Balance as of March 31, 2015 Severance-related costs $ 8 $ 22 $ (14 ) $ 16 |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income 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, including performance stock units, and stock options, including 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 net income 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 during the three months ended March 31, 2016 and 2015 (net income in millions, shares in thousands): Three Months Ended March 31, 2016 2015 Net income $ 161 $ 196 Weighted-average shares, basic for Class A and Class B 423,230 427,962 Effect of dilutive securities 950 2,534 Weighted-average shares, diluted for Class A and Class B 424,180 430,496 Net income per weighted-average share, basic for Class A and Class B $ 0.38 $ 0.46 Net income per weighted-average share, diluted for Class A and Class B $ 0.38 $ 0.45 The following table sets forth the weighted-average common share equivalents of Class A common stock that were excluded from the diluted net income per share calculations during the three months ended March 31, 2016 and 2015 , because their effect would have been anti-dilutive (shares in thousands): Three Months Ended March 31, 2016 2015 Anti-dilutive securities: Employee stock options 2,352 2,503 Restricted stock units 15,491 223 Total 17,843 2,726 |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash, cash equivalents and investments as of March 31, 2016 and December 31, 2015 consisted of the following (tables in millions): March 31, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Cash $ 716 $ — $ — $ 716 Cash equivalents: Money-market funds $ 2,033 $ — $ — $ 2,033 Time deposits 14 — — 14 Municipal obligations 22 — — 22 Total cash equivalents $ 2,069 $ — $ — $ 2,069 Short-term investments: U.S. Government and agency obligations $ 813 $ 2 $ — $ 815 U.S. and foreign corporate debt securities 3,747 14 (3 ) 3,758 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 618 1 — 619 Asset-backed securities 13 — — 13 Mortgage-backed securities 221 — — 221 Total short-term investments $ 5,447 $ 17 $ (3 ) $ 5,461 Other assets: Marketable available-for-sale equity securities $ 15 $ 2 $ — $ 17 December 31, 2015 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 725 $ — $ — $ 725 Cash equivalents: Money-market funds $ 1,763 $ — $ — $ 1,763 Time deposits 5 — — 5 Total cash equivalents $ 1,768 $ — $ — $ 1,768 Short-term investments: Time deposits $ 12 $ — $ — $ 12 U.S. Government and agency obligations 753 — (3 ) 750 U.S. and foreign corporate debt securities 3,263 1 (12 ) 3,252 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 705 1 — 706 Asset-backed securities 20 — — 20 Mortgage-backed securities 243 — (2 ) 241 Total short-term investments $ 5,031 $ 2 $ (17 ) $ 5,016 Other assets: Marketable available-for-sale equity securities $ 15 $ 3 $ — $ 18 Refer to Note F for further information regarding the fair value of VMware’s cash equivalents and investments. VMware evaluated its fixed income investments as of March 31, 2016 and December 31, 2015 to determine whether or not any security had experienced an other-than-temporary decline in fair value. As of March 31, 2016 and December 31, 2015 , VMware did not consider any of its fixed income investments to be other-than-temporarily impaired. The realized gains and losses on investments during the three months ended March 31, 2016 and 2015 were not material. Unrealized losses on cash equivalents and available-for-sale investments as of March 31, 2016 and December 31, 2015 , which have been in a net loss position for less than twelve months, were classified by asset class as follows (table in millions): March 31, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 106 $ — $ 657 $ (3 ) U.S. and foreign corporate debt securities 926 (2 ) 2,564 (11 ) Mortgage-backed securities 77 — 171 (1 ) Total $ 1,109 $ (2 ) $ 3,392 $ (15 ) Unrealized losses on cash equivalents and available-for-sale investments, which have been in a net loss position for twelve months or greater, were not material as of March 31, 2016 and December 31, 2015 . Contractual Maturities The contractual maturities of short-term investments held at March 31, 2016 consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,741 $ 1,742 Due after 1 year through 5 years 3,422 3,434 Due after 5 years through 10 years 113 114 Due after 10 years 171 171 Total short-term investments $ 5,447 $ 5,461 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Certain financial assets and liabilities are measured at fair value on a recurring basis. VMware determines fair value using the following hierarchy: • Level 1 - Quoted prices in active markets for identical assets or liabilities • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are noted active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities VMware’s fixed income securities are primarily classified as Level 2, with the exception of some of the U.S. Government and agency obligations which are classified as Level 1. Additionally, VMware’s Level 2 classification includes forward contracts and notes payable to EMC. At March 31, 2016 and December 31, 2015 , VMware’s Level 2 securities were generally priced using 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 did not have any material assets or liabilities that fell into Level 3 of the fair value hierarchy as of March 31, 2016 and December 31, 2015 , and there have been no transfers between fair value measurement levels during the three months ended March 31, 2016 and 2015 . The following tables set forth the fair value hierarchy of VMware’s cash equivalents, available-for-sale securities, and forward contracts, that were required to be measured at fair value as of March 31, 2016 and December 31, 2015 (tables in millions): March 31, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,033 $ — $ 2,033 Time deposits — 14 14 Municipal obligations — 22 22 Total cash equivalents $ 2,033 $ 36 $ 2,069 Short-term investments: U.S. Government and agency obligations $ 564 $ 251 $ 815 U.S. and foreign corporate debt securities — 3,758 3,758 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 619 619 Asset-backed securities — 13 13 Mortgage-backed securities — 221 221 Total short-term investments $ 564 $ 4,897 $ 5,461 Other assets: Marketable available-for-sale equity securities $ 17 $ — $ 17 Other current assets: Forward contracts $ — $ 4 $ 4 December 31, 2015 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 1,763 $ — $ 1,763 Time deposits — 5 5 Total cash equivalents $ 1,763 $ 5 $ 1,768 Short-term investments: Time deposits $ — $ 12 $ 12 U.S. Government and agency obligations 543 207 750 U.S. and foreign corporate debt securities — 3,252 3,252 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 706 706 Asset-backed securities — 20 20 Mortgage-backed securities — 241 241 Total short-term investments $ 543 $ 4,473 $ 5,016 Other assets: Marketable available-for-sale equity securities $ 18 $ — $ 18 Accrued expenses and other: Forward contracts $ — $ (1 ) $ (1 ) VMware has elected not to record its notes payable to EMC at fair value, but has measured the notes at fair value for disclosure purposes. As of March 31, 2016 and December 31, 2015 , the fair value of the notes payable to EMC was approximately $1,487 million and $1,474 million , respectively. Fair value was estimated based on observable market interest rates (Level 2 inputs). VMware offers a deferred compensation plan for eligible employees that allows participants to defer payment for part or all of their compensation. The net impact to the condensed consolidated statements of income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with this plan have not been included in the above tables. Assets and liabilities associated with this plan were both approximately $25 million and $20 million as of March 31, 2016 and December 31, 2015 , respectively, and are included in other assets and other liabilities on the condensed consolidated balance sheets. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis VMware has strategic investments in its portfolio accounted for under the cost method, which are periodically assessed for other-than-temporary impairment. VMware evaluates these investments to assess whether any of its strategic investments were other-than-temporarily impaired. VMware uses Level 3 inputs as part of its impairment analysis, including, pre- and post-money valuations of recent financing events and the impact of those on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance. The estimated fair value of these investments is considered in VMware’s impairment review if any events or changes in circumstances occur that might have a significant adverse effect on their value. If VMware determines that an other-than-temporary impairment has occurred, VMware writes down the investments to their fair value. During the three months ended March 31, 2016 , VMware recognized charges of approximately $5 million as a result of determining that certain strategic investments were considered to be other-than-temporarily impaired. There was no impairment charge during the three months ended March 31, 2015 . All other realized gains and losses on investments during the three months ended March 31, 2016 and 2015 were not material. Strategic investments are included in other assets on the condensed consolidated balance sheets. The carrying value of VMware’s strategic investments accounted for under the cost method was $100 million and $103 million as of March 31, 2016 and December 31, 2015 , respectively. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities VMware conducts business on a global basis in multiple foreign currencies, subjecting the Company to foreign currency risk. To mitigate this risk, VMware utilizes hedging contracts as described below, which potentially expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. VMware manages counterparty risk by seeking counterparties of high credit quality, by monitoring credit ratings and credit spreads of, and other relevant public information about its counterparties. VMware does not, and does not intend to, use derivative instruments for trading or speculative purposes. Cash Flow Hedges To mitigate its exposure to foreign currency fluctuations resulting from operating expenses denominated in certain foreign currencies, VMware enters into forward contracts. The Company designates these forward contracts as cash flow hedging instruments as the accounting criteria for such designation have 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 condensed consolidated balance sheets and is subsequently reclassified to the related operating expense line item on the condensed consolidated statements of income in the same period that the underlying expenses are incurred. During the three months ended March 31, 2016 and 2015 the effective portion of gains or losses reclassified to the condensed consolidated statements of income was not material. 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 on the condensed consolidated statements of income as incurred. VMware enters into forward contracts annually, which have maturities of twelve months or less. As of March 31, 2016 and December 31, 2015 , VMware had forward contracts designated as cash flow hedges with a total notional value of $161 million and $213 million , respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three months ended March 31, 2016 and 2015 , all cash flow hedges were considered effective. Forward Contracts Not Designated as Hedges VMware has established a program that utilizes forward contracts to offset the foreign currency risk associated with net outstanding monetary asset and liability positions. 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 on the condensed consolidated statements of income. VMware enters into forward contracts on a monthly basis, which typically have a contractual term of one month. As of March 31, 2016 and December 31, 2015 , VMware had outstanding forward contracts with a total notional value of $693 million and $721 million , respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three months ended March 31, 2016 and 2015 , VMware recognized a loss of $23 million and a gain of $40 million , respectively, relating to the settlement of forward contracts. Gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. The combined gains and losses derived from the settlement of forward contracts and the underlying foreign currency denominated assets and liabilities resulted in a net loss of $2 million and $6 million , respectively, during the three months ended March 31, 2016 and 2015 . Net gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. |
Unearned Revenues
Unearned Revenues | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Unearned Revenues | Unearned Revenues Unearned revenues as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): March 31, 2016 December 31, 2015 Unearned license revenues $ 415 $ 428 Unearned software maintenance revenues 4,105 4,174 Unearned professional services revenues 456 474 Total unearned revenues $ 4,976 $ 5,076 Unearned license revenues are generally recognized upon delivery of existing or future products or services, or are otherwise recognized ratably over the term of the arrangement. 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 the future product at no additional charge. To the extent the future product has not been delivered and vendor-specific objective evidence ("VSOE") of fair value cannot be established, the revenue for the entire order is deferred until such time as all product delivery obligations have been fulfilled. In the event the arrangement does not include professional services, unearned license revenues may also be recognized ratably, if the customer is granted the right to receive unspecified future products or VSOE of fair value on the software maintenance element of the arrangement does not exist. Unearned software maintenance revenues are attributable to VMware’s maintenance contracts and are generally recognized ratably over the contract period. The weighted-average remaining term at March 31, 2016 was approximately two years . Unearned professional services revenues result primarily from prepaid professional services, including training, and are generally recognized as the services are delivered. Unearned license and software maintenance revenues will fluctuate based upon a variety of factors including sales volume, the timing of both product promotion offers and delivery of the future products offered, and the amount of arrangements sold with ratable revenue recognition. Additionally, the amount of unearned revenues derived from transactions denominated in a foreign currency is impacted by fluctuations in the foreign currencies in which VMware invoices. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation On March 27, 2015, Phoenix Technologies ("Phoenix") filed a complaint against VMware in the U.S. District Court for the Northern District of California asserting claims for copyright infringement and breach of contract relating to a version of Phoenix’s BIOS software that VMware licensed from Phoenix. In the lawsuit, Phoenix is seeking injunctive relief and monetary damages. Trial is currently scheduled for November 2016. VMware believes that it has meritorious defenses in connection with this lawsuit, and currently a reasonably possible loss or range of loss cannot be estimated. On March 4, 2015, Christoph Hellwig, a software developer who alleges that software code he wrote is used in a component of the Company's vSphere product, filed a lawsuit against VMware in the Hamburg Regional Court in Germany alleging copyright infringement for failing to comply with the terms of an open source General Public License v.2 ("GPL v.2") and seeking an order requiring VMware to comply with the GPL v.2 or cease distribution of any affected code within Germany. VMware believes that it has meritorious defenses in connection with this lawsuit, and currently a reasonably possible loss or range of loss cannot be estimated. VMware believes that it has valid defenses against each of the above legal matters. However, given the unpredictable nature of legal proceedings, an unfavorable resolution of one or more legal proceedings, claims, or investigations could have a material adverse effect on VMware’s condensed consolidated financial statements. On November 17, 2015, Francis M. Ford, a VMware Class A stockholder, filed an action in the Delaware Chancery Court against certain current and former VMware directors, among others, alleging that the directors breached their fiduciary duties in connection with the Dell Acquisition, and the proposed issuance of tracking stock that is intended to track the performance of VMware. The plaintiff does not assert claims directly against VMware, but purports to bring class claims on behalf of other VMware Class A stockholders and derivative claims on behalf of VMware. In addition, on November 10, 2015, David Jacobs, also a VMware stockholder, filed an action in Massachusetts Superior Court against, among others, EMC and four directors who serve on both the EMC board and the VMware Board, setting forth similar allegations to those in the Ford matter. While VMware does not believe that the cases represent material adverse exposures, no assurances can be given that the litigation will not have any adverse consequences for the company or the directors named in the suits. VMware accrues for a liability when a determination has been made that a loss is both probable and the amount of the loss can be reasonably estimated. If only a range can be estimated and no amount within the range is a better estimate than any other amount, an accrual is recorded for the minimum amount in the range. Significant judgment is required in both the determination that the occurrence of a loss is probable and is reasonably estimable. In making such judgments, VMware considers the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Legal costs are generally recognized as expense when incurred. VMware is also subject to other legal, administrative and regulatory proceedings, claims, demands and investigations in the ordinary course of business or in connection with business mergers and acquisitions, including claims with respect to commercial, contracting and sales practices, product liability, intellectual property, employment, corporate and securities law, class action, whistleblower and other matters. From time to time, VMware also receives inquiries from and has discussions with government entities and stockholders on various matters. As of March 31, 2016 , amounts accrued relating to these other matters arising as part of the ordinary course of business were not considered material. VMware does not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on its condensed consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity VMware Stock Repurchases During April 2016, VMware's board of directors authorized the repurchase of up to an aggregate of $1,200 million of VMware's Class A common stock through the end of 2016. The aggregate authorized stock repurchase amount of $1,200 million includes the amount remaining from VMware's previous stock repurchase authorization announced on January 27, 2015, which was $835 million as of March 31, 2016. Stock will be purchased from time to time, in the open market or through private transactions, subject to market conditions. 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, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases can be discontinued at any time VMware believes additional purchases are not warranted. All shares repurchased under VMware’s stock repurchase programs are retired. During the three months ended March 31, 2016, VMware did not repurchase any shares of its Class A common stock as the Company is currently subject to a number of legal and regulatory constraints resulting from the proposed Dell Acquisition, which impacts the timing and ability to execute repurchases of VMware's shares. The following table summarizes stock repurchase activity during the three months ended March 31, 2015 (aggregate purchase price in millions, shares in thousands): Three Months Ended March 31, 2015 Aggregate purchase price $ 438 Class A common shares repurchased 5,366 Weighted-average price per share $ 81.65 The aggregate purchase price of repurchased shares includes commissions and is classified as a reduction to additional paid-in capital. VMware Stock Options Stock option activity was not material during three months ended March 31, 2016 . As of March 31, 2016 , there were 2.9 million stock options outstanding. The stock options outstanding as of March 31, 2016 had an aggregate intrinsic value of $35 million based on VMware’s closing stock price as of March 31, 2016 . VMware Restricted Stock VMware's restricted stock primarily consists of restricted stock unit ("RSU") awards granted to employees. RSUs are valued based on VMware's stock price on the date of grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of VMware Class A common stock. VMware's 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 and, in certain cases, a time-based vesting component. Upon vesting, each PSU award will convert into VMware’s Class A common stock at various ratios ranging from 0.5 to 2.0 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, 2016 (units in thousands): Number of Units Weighted- Average Grant Date Fair Value (per unit) Outstanding, January 1, 2016 18,693 $ 77.29 Granted 1,690 51.38 Vested (1,220 ) 76.88 Forfeited (1,085 ) 81.33 Outstanding, March 31, 2016 18,078 74.65 The total fair value of VMware restricted stock that vested during the three months ended March 31, 2016 was $61 million . As of March 31, 2016 , restricted stock representing 18.1 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $946 million based on VMware’s closing stock price as of March 31, 2016 . As of March 31, 2016, the total unrecognized compensation cost for stock options and restricted stock was $1,029 million and will be recognized through 2020 with a weighted-average remaining period of 1.4 years. Accumulated Other Comprehensive Income (Loss) The changes in components of accumulated other comprehensive income (loss) during the three months ended March 31, 2016 and 2015 were as follows (tables in millions): Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2016 $ (7 ) $ (1 ) $ (8 ) Unrealized gain (loss), net of taxes of $11, $0 and $11 18 2 20 Balance, March 31, 2016 $ 11 $ 1 $ 12 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2015 $ — $ (1 ) $ (1 ) Unrealized gain (loss), net of taxes of $4, $0, and $4 6 (5 ) 1 Balance, March 31, 2015 $ 6 $ (6 ) $ — Unrealized gains on VMware’s available-for-sale securities are reclassified to investment income on the condensed consolidated statements of income in the period that such gains 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 condensed consolidated statements of income in the same period that the underlying expenses are incurred. The amounts recorded to their related operating expense functional line items on the condensed consolidated statements of income during the three months ended March 31, 2016 and 2015 were not material to the individual functional line items. |
Stockholders' Equity | Stockholders’ Equity VMware Stock Repurchases During April 2016, VMware's board of directors authorized the repurchase of up to an aggregate of $1,200 million of VMware's Class A common stock through the end of 2016. The aggregate authorized stock repurchase amount of $1,200 million includes the amount remaining from VMware's previous stock repurchase authorization announced on January 27, 2015, which was $835 million as of March 31, 2016. Stock will be purchased from time to time, in the open market or through private transactions, subject to market conditions. 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, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases can be discontinued at any time VMware believes additional purchases are not warranted. All shares repurchased under VMware’s stock repurchase programs are retired. During the three months ended March 31, 2016, VMware did not repurchase any shares of its Class A common stock as the Company is currently subject to a number of legal and regulatory constraints resulting from the proposed Dell Acquisition, which impacts the timing and ability to execute repurchases of VMware's shares. The following table summarizes stock repurchase activity during the three months ended March 31, 2015 (aggregate purchase price in millions, shares in thousands): Three Months Ended March 31, 2015 Aggregate purchase price $ 438 Class A common shares repurchased 5,366 Weighted-average price per share $ 81.65 The aggregate purchase price of repurchased shares includes commissions and is classified as a reduction to additional paid-in capital. VMware Stock Options Stock option activity was not material during three months ended March 31, 2016 . As of March 31, 2016 , there were 2.9 million stock options outstanding. The stock options outstanding as of March 31, 2016 had an aggregate intrinsic value of $35 million based on VMware’s closing stock price as of March 31, 2016 . VMware Restricted Stock VMware's restricted stock primarily consists of restricted stock unit ("RSU") awards granted to employees. RSUs are valued based on VMware's stock price on the date of grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of VMware Class A common stock. VMware's 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 and, in certain cases, a time-based vesting component. Upon vesting, each PSU award will convert into VMware’s Class A common stock at various ratios ranging from 0.5 to 2.0 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, 2016 (units in thousands): Number of Units Weighted- Average Grant Date Fair Value (per unit) Outstanding, January 1, 2016 18,693 $ 77.29 Granted 1,690 51.38 Vested (1,220 ) 76.88 Forfeited (1,085 ) 81.33 Outstanding, March 31, 2016 18,078 74.65 The total fair value of VMware restricted stock that vested during the three months ended March 31, 2016 was $61 million . As of March 31, 2016 , restricted stock representing 18.1 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $946 million based on VMware’s closing stock price as of March 31, 2016 . As of March 31, 2016, the total unrecognized compensation cost for stock options and restricted stock was $1,029 million and will be recognized through 2020 with a weighted-average remaining period of 1.4 years. Accumulated Other Comprehensive Income (Loss) The changes in components of accumulated other comprehensive income (loss) during the three months ended March 31, 2016 and 2015 were as follows (tables in millions): Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2016 $ (7 ) $ (1 ) $ (8 ) Unrealized gain (loss), net of taxes of $11, $0 and $11 18 2 20 Balance, March 31, 2016 $ 11 $ 1 $ 12 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2015 $ — $ (1 ) $ (1 ) Unrealized gain (loss), net of taxes of $4, $0, and $4 6 (5 ) 1 Balance, March 31, 2015 $ 6 $ (6 ) $ — Unrealized gains on VMware’s available-for-sale securities are reclassified to investment income on the condensed consolidated statements of income in the period that such gains 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 condensed consolidated statements of income in the same period that the underlying expenses are incurred. The amounts recorded to their related operating expense functional line items on the condensed consolidated statements of income during the three months ended March 31, 2016 and 2015 were not material to the individual functional line items. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The information provided below includes a summary of the transactions entered into with EMC and EMC’s consolidated subsidiaries (collectively "EMC"). Transactions with EMC VMware and EMC engaged in the following ongoing intercompany transactions, which resulted in revenues and receipts and unearned revenues for VMware: • 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. • EMC purchases products and services from VMware for internal use. • VMware provides professional services to end users based upon contractual agreements with EMC. • Pursuant to an ongoing distribution agreement, VMware acts as the selling agent for certain products and services of Pivotal Software, Inc. ("Pivotal"), a subsidiary of EMC, in exchange for an agency fee. Under this agreement, cash is collected from the end user by VMware and remitted to Pivotal, net of the contractual agency fee. • VMware provides various services to Pivotal. Support costs incurred by VMware are reimbursed to VMware and are recorded as a reduction to the costs incurred by VMware. Information about VMware’s revenues and receipts from such arrangements during the three months ended March 31, 2016 and 2015 and unearned revenues from such arrangements as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): Revenues and Receipts Unearned Revenues Three Months Ended As of As of March 31, March 31, December 31, 2016 2015 2016 2015 Reseller revenues $ 79 $ 61 $ 276 $ 292 Internal-use revenues 5 3 6 11 Professional services revenues 25 23 — 3 Agency fee revenues 1 1 — — Reimbursement for services to Pivotal 1 1 n/a n/a VMware and EMC engaged in the following ongoing intercompany transactions, which resulted in costs to VMware: • VMware purchases and leases products and purchases services from EMC. • From time to time, VMware and EMC enter into agreements to collaborate on technology projects, and VMware pays EMC for services provided to VMware by EMC related to such projects. • 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 charged to VMware with a mark-up intended to approximate costs that would have been incurred had VMware contracted for such services with an unrelated third party. These costs are included as expenses on VMware’s condensed consolidated statements of income and primarily include salaries, benefits, travel and rent expenses. EMC also incurs certain administrative costs on VMware’s behalf in the U.S. that are recorded as expenses on VMware’s condensed consolidated statements of income. • From time to time, VMware invoices end users on behalf of EMC for certain services rendered by EMC. Cash related to these services is collected from the end user by VMware and remitted to EMC. Information about VMware’s costs from such arrangements for the three months ended March 31, 2016 and 2015 consisted of the following (table in millions): Three Months Ended March 31, 2016 2015 Purchases and leases of products and purchases of services $ 17 $ 19 Collaborative technology project costs — 1 EMC subsidiary support and administrative costs 23 28 VMware also purchases EMC products through EMC's channel partners. There were no purchases of EMC products through EMC's channel partners during the three months ended March 31, 2016 . Purchases of EMC products through EMC's channel partners were $8 million during the three months ended March 31, 2015 . Tax Sharing Agreement with EMC VMware has made payments to EMC pursuant to a tax sharing agreement. The following table summarizes the payments made during the three months ended March 31, 2016 and 2015 (table in millions): Three Months Ended March 31, 2016 2015 Payments from VMware to EMC $ 40 $ 49 Payments from VMware to EMC under the tax sharing agreement relate to VMware’s portion of federal income taxes on EMC’s consolidated tax return as well as the state payments for combined states. The amounts that VMware pays to EMC for its portion of federal income taxes on EMC’s consolidated tax return differ from the amounts VMware would owe on a separate return basis and the difference is presented as a component of stockholders’ equity. During the three months ended March 31, 2016 and 2015 , the difference between the amount of tax calculated on a separate return basis and the amount of tax calculated per the tax sharing agreement was not material. Due To/From Related Parties, Net As a result of the related party transactions with EMC described above, amounts due to and from related parties, net as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): March 31, December 31, 2016 2015 Due (to) related parties $ (51 ) $ (68 ) Due from related parties 63 142 Due (to) from related parties, net $ 12 $ 74 Income tax due (to) from related parties $ (2 ) $ (18 ) Balances due to and from related parties, 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 related parties is governed by the tax sharing agreement with EMC. Notes Payable to EMC VMware and EMC entered into a note exchange agreement on January 21, 2014 providing for the issuance of three promissory notes in the aggregate principal amount of $1,500 million . The total debt of $1,500 million includes $450 million that was exchanged for the $450 million promissory note issued to EMC in April 2007, as amended and restated in June 2011. The three notes issued may be prepaid without penalty or premium, and outstanding principal is due on the following dates: $680 million due May 1, 2018 , $550 million due May 1, 2020 and $270 million due December 1, 2022 . The notes bear interest, payable quarterly in arrears, at the annual rate of 1.75% . During the three months ended March 31, 2016 and 2015 , $7 million and $6 million , respectively, of interest expense was recognized. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information VMware operates in one reportable operating segment, thus all required financial segment information can be found in the condensed consolidated financial statements. 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 months ended March 31, 2016 and 2015 were as follows (table in millions): Three Months Ended March 31, 2016 2015 United States $ 800 $ 762 International 789 749 Total $ 1,589 $ 1,511 Revenues by geographic area are based on the ship-to addresses of VMware’s customers. No individual country other than the United States accounted for 10% or more of revenues for the three months ended March 31, 2016 and 2015 . Long-lived assets by geographic area, which primarily include property and equipment, net, as of March 31, 2016 and December 31, 2015 were as follows (table in millions): March 31, 2016 December 31, 2015 United States $ 817 $ 831 International 144 148 Total $ 961 $ 979 No individual country other than the United States accounted for 10% or more of these assets as of March 31, 2016 and December 31, 2015 , respectively. |
Overview and Basis of Present20
Overview and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Unaudited Interim Financial Information The accompanying unaudited condensed 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 condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments and accruals, for a fair statement of VMware’s condensed 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 2016. Certain information and footnote disclosures typically included in annual consolidated financial statements have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in VMware’s 2015 Annual Report on Form 10-K. As of March 31, 2016 , EMC held 80.9% of VMware’s outstanding common stock and 97.4% 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. On October 12, 2015, Dell Inc. ("Dell"), Denali Holding Inc. ("Denali") and EMC entered into a definitive merger agreement under which Denali has agreed to acquire EMC (the "Dell Acquisition"). Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with EMC may not be considered arm’s length with an unrelated third party. Therefore, the financial statements included herein may not necessarily reflect the results of operations, financial position 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. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of VMware and subsidiaries in which VMware has a controlling financial interest. Non-controlling interests are presented as a separate component within total stockholders’ equity and represent the equity and cumulative pro-rata share of the results of operations attributable to the non-controlling interests. The portion of results of operations attributable to the non-controlling interests is eliminated in other income (expense), net on the condensed consolidated statements of income and is not presented separately as the amount was not material for the periods presented. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with EMC and its subsidiaries are generally settled in cash and are classified on the condensed consolidated statements of cash flows based upon the nature of the underlying transaction. |
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, marketing development funds and rebates, useful lives assigned to fixed assets and intangible assets, valuation of goodwill and definite-lived intangibles, income taxes, stock-based compensation, and contingencies. Actual results could differ from those estimates. |
New Accounting Pronouncements | New Accounting Pronouncements During March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation—Stock Compensation (Topic 718), which impacts the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated standard is effective for interim and annual periods beginning after December 15, 2016 and permits early adoption in any interim or annual period. The Company is currently evaluating the effect that ASU 2016-09 will have on its consolidated financial statements and related disclosures. During February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. This ASU also requires additional disclosure regarding leasing arrangements. The updated lease standard is effective for interim and annual periods beginning after December 15, 2018 and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures, and expects that most of its lease commitments will be subject to the updated standard and recognized as lease liabilities and right-of-use assets upon adoption of ASU 2016-02. During May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The updated revenue standard establishes principles for recognizing revenue and develops a common revenue standard for all industries. In 2016, the FASB issued ASU 2016-08 and ASU 2016-10, which provide interpretive clarifications on the new guidance in Topic 606. The updates are effective for the Company in the first quarter of 2018 and permit the use of either the retrospective or cumulative effect transition method. Early adoption is permitted, but not earlier than the first quarter of 2017. The Company has not selected a transition method and is currently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. |
Definite-Lived Intangible Ass21
Definite-Lived Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Definite-Lived Intangible Assets | As of March 31, 2016 and December 31, 2015 , definite-lived intangible assets consisted of the following (amounts in tables in millions): March 31, 2016 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 646 $ (320 ) $ 326 Leasehold interest 34.9 149 (21 ) 128 Customer relationships and customer lists 8.3 134 (52 ) 82 Trademarks and tradenames 8.6 61 (18 ) 43 Other 5.5 5 (2 ) 3 Total definite-lived intangible assets $ 995 $ (413 ) $ 582 December 31, 2015 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 648 $ (298 ) $ 350 Leasehold interest 34.9 149 (20 ) 129 Customer relationships and customer lists 8.4 148 (62 ) 86 Trademarks and tradenames 8.6 61 (16 ) 45 Other 2.9 20 (14 ) 6 Total definite-lived intangible assets $ 1,026 $ (410 ) $ 616 |
Schedule of Future Amortization Expense | Based on intangible assets recorded as of March 31, 2016 and assuming no subsequent additions or impairment of underlying assets, the remaining estimated annual amortization expense is expected to be as follows (table in millions): Remainder of 2016 $ 95 2017 122 2018 109 2019 88 2020 38 Thereafter 130 Total $ 582 |
Realignment Charges (Tables)
Realignment Charges (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity for the accrued realignment charges for the three months ended March 31, 2016 and 2015 (tables in millions): For the Three Months Ended March 31, 2016 Balance as of January 1, 2016 Realignment Charges Utilization Balance as of March 31, 2016 Severance-related costs $ 3 $ 50 $ (26 ) $ 27 Costs to exit facilities — 3 — 3 Total $ 3 $ 53 $ (26 ) $ 30 For the Three Months Ended March 31, 2015 Balance as of January 1, 2015 Realignment Charges Utilization Balance as of March 31, 2015 Severance-related costs $ 8 $ 22 $ (14 ) $ 16 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 during the three months ended March 31, 2016 and 2015 (net income in millions, shares in thousands): Three Months Ended March 31, 2016 2015 Net income $ 161 $ 196 Weighted-average shares, basic for Class A and Class B 423,230 427,962 Effect of dilutive securities 950 2,534 Weighted-average shares, diluted for Class A and Class B 424,180 430,496 Net income per weighted-average share, basic for Class A and Class B $ 0.38 $ 0.46 Net income per weighted-average share, diluted for Class A and Class B $ 0.38 $ 0.45 |
Antidilutive Securities Excluded from Computation of Net Income per Share | The following table sets forth the weighted-average common share equivalents of Class A common stock that were excluded from the diluted net income per share calculations during the three months ended March 31, 2016 and 2015 , because their effect would have been anti-dilutive (shares in thousands): Three Months Ended March 31, 2016 2015 Anti-dilutive securities: Employee stock options 2,352 2,503 Restricted stock units 15,491 223 Total 17,843 2,726 |
Cash, Cash Equivalents and In24
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, cash equivalents and investments as of March 31, 2016 and December 31, 2015 consisted of the following (tables in millions): March 31, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Cash $ 716 $ — $ — $ 716 Cash equivalents: Money-market funds $ 2,033 $ — $ — $ 2,033 Time deposits 14 — — 14 Municipal obligations 22 — — 22 Total cash equivalents $ 2,069 $ — $ — $ 2,069 Short-term investments: U.S. Government and agency obligations $ 813 $ 2 $ — $ 815 U.S. and foreign corporate debt securities 3,747 14 (3 ) 3,758 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 618 1 — 619 Asset-backed securities 13 — — 13 Mortgage-backed securities 221 — — 221 Total short-term investments $ 5,447 $ 17 $ (3 ) $ 5,461 Other assets: Marketable available-for-sale equity securities $ 15 $ 2 $ — $ 17 December 31, 2015 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value Cash $ 725 $ — $ — $ 725 Cash equivalents: Money-market funds $ 1,763 $ — $ — $ 1,763 Time deposits 5 — — 5 Total cash equivalents $ 1,768 $ — $ — $ 1,768 Short-term investments: Time deposits $ 12 $ — $ — $ 12 U.S. Government and agency obligations 753 — (3 ) 750 U.S. and foreign corporate debt securities 3,263 1 (12 ) 3,252 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 705 1 — 706 Asset-backed securities 20 — — 20 Mortgage-backed securities 243 — (2 ) 241 Total short-term investments $ 5,031 $ 2 $ (17 ) $ 5,016 Other assets: Marketable available-for-sale equity securities $ 15 $ 3 $ — $ 18 |
Unrealized Losses on Cash Equivalents and Investments | Unrealized losses on cash equivalents and available-for-sale investments as of March 31, 2016 and December 31, 2015 , which have been in a net loss position for less than twelve months, were classified by asset class as follows (table in millions): March 31, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 106 $ — $ 657 $ (3 ) U.S. and foreign corporate debt securities 926 (2 ) 2,564 (11 ) Mortgage-backed securities 77 — 171 (1 ) Total $ 1,109 $ (2 ) $ 3,392 $ (15 ) |
Contractual Maturities of Investments | The contractual maturities of short-term investments held at March 31, 2016 consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,741 $ 1,742 Due after 1 year through 5 years 3,422 3,434 Due after 5 years through 10 years 113 114 Due after 10 years 171 171 Total short-term investments $ 5,447 $ 5,461 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Money Market Funds, Available-For-Sale Securities, and Foreign Currency Forward Contracts | The following tables set forth the fair value hierarchy of VMware’s cash equivalents, available-for-sale securities, and forward contracts, that were required to be measured at fair value as of March 31, 2016 and December 31, 2015 (tables in millions): March 31, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,033 $ — $ 2,033 Time deposits — 14 14 Municipal obligations — 22 22 Total cash equivalents $ 2,033 $ 36 $ 2,069 Short-term investments: U.S. Government and agency obligations $ 564 $ 251 $ 815 U.S. and foreign corporate debt securities — 3,758 3,758 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 619 619 Asset-backed securities — 13 13 Mortgage-backed securities — 221 221 Total short-term investments $ 564 $ 4,897 $ 5,461 Other assets: Marketable available-for-sale equity securities $ 17 $ — $ 17 Other current assets: Forward contracts $ — $ 4 $ 4 December 31, 2015 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 1,763 $ — $ 1,763 Time deposits — 5 5 Total cash equivalents $ 1,763 $ 5 $ 1,768 Short-term investments: Time deposits $ — $ 12 $ 12 U.S. Government and agency obligations 543 207 750 U.S. and foreign corporate debt securities — 3,252 3,252 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 706 706 Asset-backed securities — 20 20 Mortgage-backed securities — 241 241 Total short-term investments $ 543 $ 4,473 $ 5,016 Other assets: Marketable available-for-sale equity securities $ 18 $ — $ 18 Accrued expenses and other: Forward contracts $ — $ (1 ) $ (1 ) |
Unearned Revenues (Tables)
Unearned Revenues (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Unearned Revenues, by Arrangement | Unearned revenues as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): March 31, 2016 December 31, 2015 Unearned license revenues $ 415 $ 428 Unearned software maintenance revenues 4,105 4,174 Unearned professional services revenues 456 474 Total unearned revenues $ 4,976 $ 5,076 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Programs | The following table summarizes stock repurchase activity during the three months ended March 31, 2015 (aggregate purchase price in millions, shares in thousands): Three Months Ended March 31, 2015 Aggregate purchase price $ 438 Class A common shares repurchased 5,366 Weighted-average price per share $ 81.65 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity since January 1, 2016 (units in thousands): Number of Units Weighted- Average Grant Date Fair Value (per unit) Outstanding, January 1, 2016 18,693 $ 77.29 Granted 1,690 51.38 Vested (1,220 ) 76.88 Forfeited (1,085 ) 81.33 Outstanding, March 31, 2016 18,078 74.65 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in components of accumulated other comprehensive income (loss) during the three months ended March 31, 2016 and 2015 were as follows (tables in millions): Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2016 $ (7 ) $ (1 ) $ (8 ) Unrealized gain (loss), net of taxes of $11, $0 and $11 18 2 20 Balance, March 31, 2016 $ 11 $ 1 $ 12 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Total Balance, January 1, 2015 $ — $ (1 ) $ (1 ) Unrealized gain (loss), net of taxes of $4, $0, and $4 6 (5 ) 1 Balance, March 31, 2015 $ 6 $ (6 ) $ — |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | As a result of the related party transactions with EMC described above, amounts due to and from related parties, net as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): March 31, December 31, 2016 2015 Due (to) related parties $ (51 ) $ (68 ) Due from related parties 63 142 Due (to) from related parties, net $ 12 $ 74 Income tax due (to) from related parties $ (2 ) $ (18 ) Information about VMware’s revenues and receipts from such arrangements during the three months ended March 31, 2016 and 2015 and unearned revenues from such arrangements as of March 31, 2016 and December 31, 2015 consisted of the following (table in millions): Revenues and Receipts Unearned Revenues Three Months Ended As of As of March 31, March 31, December 31, 2016 2015 2016 2015 Reseller revenues $ 79 $ 61 $ 276 $ 292 Internal-use revenues 5 3 6 11 Professional services revenues 25 23 — 3 Agency fee revenues 1 1 — — Reimbursement for services to Pivotal 1 1 n/a n/a Information about VMware’s costs from such arrangements for the three months ended March 31, 2016 and 2015 consisted of the following (table in millions): Three Months Ended March 31, 2016 2015 Purchases and leases of products and purchases of services $ 17 $ 19 Collaborative technology project costs — 1 EMC subsidiary support and administrative costs 23 28 VMware has made payments to EMC pursuant to a tax sharing agreement. The following table summarizes the payments made during the three months ended March 31, 2016 and 2015 (table in millions): Three Months Ended March 31, 2016 2015 Payments from VMware to EMC $ 40 $ 49 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Area | Revenues by geographic area for the three months ended March 31, 2016 and 2015 were as follows (table in millions): Three Months Ended March 31, 2016 2015 United States $ 800 $ 762 International 789 749 Total $ 1,589 $ 1,511 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area, which primarily include property and equipment, net, as of March 31, 2016 and December 31, 2015 were as follows (table in millions): March 31, 2016 December 31, 2015 United States $ 817 $ 831 International 144 148 Total $ 961 $ 979 |
Overview and Basis of Present30
Overview and Basis of Presentation (Basis of Presentation) (Details) - EMC shares in Millions | Mar. 31, 2016shares |
Related Party Transaction [Line Items] | |
Shareholders' interest, outstanding ownership percentage of VMware by EMC | 80.90% |
Combined voting power of VMware's outstanding common stock | 97.40% |
Class A common stock | |
Related Party Transaction [Line Items] | |
VMware's outstanding common stock held by EMC (shares) | 43 |
Definite-Lived Intangible Ass31
Definite-Lived Intangible Assets, Net (Intangible Assets Detail) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 995 | $ 1,026 | |
Accumulated Amortization | (413) | (410) | |
Net Book Value | 582 | $ 616 | |
Amortization Expense | $ 34 | $ 37 | |
Purchased technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Lives (in years) | 6 years 7 months 6 days | 6 years 7 months 6 days | |
Gross Carrying Amount | $ 646 | $ 648 | |
Accumulated Amortization | (320) | (298) | |
Net Book Value | $ 326 | $ 350 | |
Leasehold interest | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Lives (in years) | 34 years 10 months 24 days | 34 years 10 months 24 days | |
Gross Carrying Amount | $ 149 | $ 149 | |
Accumulated Amortization | (21) | (20) | |
Net Book Value | $ 128 | $ 129 | |
Customer relationships and customer lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Lives (in years) | 8 years 3 months 18 days | 8 years 4 months 24 days | |
Gross Carrying Amount | $ 134 | $ 148 | |
Accumulated Amortization | (52) | (62) | |
Net Book Value | $ 82 | $ 86 | |
Trademarks and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Lives (in years) | 8 years 7 months 6 days | 8 years 7 months 6 days | |
Gross Carrying Amount | $ 61 | $ 61 | |
Accumulated Amortization | (18) | (16) | |
Net Book Value | $ 43 | $ 45 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Useful Lives (in years) | 5 years 6 months | 2 years 10 months 24 days | |
Gross Carrying Amount | $ 5 | $ 20 | |
Accumulated Amortization | (2) | (14) | |
Net Book Value | $ 3 | $ 6 |
Definite-Lived Intangible Ass32
Definite-Lived Intangible Assets, Net (Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Business Combinations [Abstract] | ||
Remainder of 2016 | $ 95 | |
2,017 | 122 | |
2,018 | 109 | |
2,019 | 88 | |
2,020 | 38 | |
Thereafter | 130 | |
Net Book Value | $ 582 | $ 616 |
Realignment Charges (Narrative)
Realignment Charges (Narrative) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016USD ($)Position | Mar. 31, 2015USD ($)Position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated | Position | 800 | 350 | |||
Realignment Charges | [1] | $ 53 | $ 22 | ||
Restructuring Reserve | 30 | $ 3 | |||
Severance-related costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Realignment Charges | 50 | 22 | |||
Restructuring Reserve | 27 | $ 16 | 3 | $ 8 | |
Costs to exit facilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Realignment Charges | 3 | ||||
Restructuring Reserve | $ 3 | $ 0 | |||
[1] | Includes stock-based compensation as follows: Cost of license revenues $1 $1, Cost of services revenues $12 $11, Research and development $70 $54, Sales and marketing $49 $39, General and administrative $18 $14. |
Realignment Charges (Schedule o
Realignment Charges (Schedule of Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning of Period | $ 3 | ||
Realignment Charges | [1] | 53 | $ 22 |
Utilization | (26) | ||
Restructuring Reserve, End of Period | 30 | ||
Severance-related costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning of Period | 3 | 8 | |
Realignment Charges | 50 | 22 | |
Utilization | (26) | (14) | |
Restructuring Reserve, End of Period | 27 | $ 16 | |
Costs to exit facilities | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning of Period | 0 | ||
Realignment Charges | 3 | ||
Utilization | 0 | ||
Restructuring Reserve, End of Period | $ 3 | ||
[1] | Includes stock-based compensation as follows: Cost of license revenues $1 $1, Cost of services revenues $12 $11, Research and development $70 $54, Sales and marketing $49 $39, General and administrative $18 $14. |
Net Income per Share (Computati
Net Income per Share (Computations Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 161 | $ 196 |
Weighted-average shares, basic for Class A and Class B | 423,230 | 427,962 |
Effect of dilutive securities | 950 | 2,534 |
Weighted-average shares, diluted for Class A and Class B | 424,180 | 430,496 |
Net income per weighted-average share, basic for Class A and Class B (USD per share) | $ 0.38 | $ 0.46 |
Net income per weighted-average share, diluted for Class A and Class B (USD per share) | $ 0.38 | $ 0.45 |
Net Income per Share (Anti-Dilu
Net Income per Share (Anti-Dilutive Shares Excluded From Net Income) (Details) - Class A common stock - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,843 | 2,726 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,352 | 2,503 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 15,491 | 223 |
Cash, Cash Equivalents and In37
Cash, Cash Equivalents and Investments (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | $ 2,785 | $ 2,493 | $ 1,941 | $ 2,071 |
Short-term investments, cost or amortized cost | 5,447 | 5,031 | ||
Short-term investments, unrealized gains | 17 | 2 | ||
Short-term investments, unrealized losses | (3) | (17) | ||
Short-term investments, aggregate fair value | 5,461 | 5,016 | ||
Other Assets | ||||
Schedule of Investments [Line Items] | ||||
Marketable available-for-sale equity securities, amortized cost | 15 | 15 | ||
Marketable available-for-sale equity securities, unrealized gains | 2 | 3 | ||
Marketable available-for-sale equity securities, unrealized losses | 0 | 0 | ||
Marketable available-for-sale equity securities, aggregate fair value | 17 | 18 | ||
Time deposits | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 12 | |||
Short-term investments, unrealized gains | 0 | |||
Short-term investments, unrealized losses | 0 | |||
Short-term investments, aggregate fair value | 12 | |||
U.S. Government and agency obligations | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 813 | 753 | ||
Short-term investments, unrealized gains | 2 | 0 | ||
Short-term investments, unrealized losses | 0 | (3) | ||
Short-term investments, aggregate fair value | 815 | 750 | ||
U.S. and foreign corporate debt securities | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 3,747 | 3,263 | ||
Short-term investments, unrealized gains | 14 | 1 | ||
Short-term investments, unrealized losses | (3) | (12) | ||
Short-term investments, aggregate fair value | 3,758 | 3,252 | ||
Foreign governments and multi-national agency obligations | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 35 | 35 | ||
Short-term investments, unrealized gains | 0 | 0 | ||
Short-term investments, unrealized losses | 0 | 0 | ||
Short-term investments, aggregate fair value | 35 | 35 | ||
Municipal obligations | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 618 | 705 | ||
Short-term investments, unrealized gains | 1 | 1 | ||
Short-term investments, unrealized losses | 0 | 0 | ||
Short-term investments, aggregate fair value | 619 | 706 | ||
Asset-backed securities | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 13 | 20 | ||
Short-term investments, unrealized gains | 0 | 0 | ||
Short-term investments, unrealized losses | 0 | 0 | ||
Short-term investments, aggregate fair value | 13 | 20 | ||
Mortgage-backed securities | ||||
Schedule of Investments [Line Items] | ||||
Short-term investments, cost or amortized cost | 221 | 243 | ||
Short-term investments, unrealized gains | 0 | 0 | ||
Short-term investments, unrealized losses | 0 | (2) | ||
Short-term investments, aggregate fair value | 221 | 241 | ||
Cash | ||||
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | 716 | 725 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 716 | 725 | ||
Money-market funds | ||||
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | 2,033 | 1,763 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 2,033 | 1,763 | ||
Time deposits | ||||
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | 14 | 5 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | 14 | 5 | ||
Municipal obligations | ||||
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | 22 | |||
Cash and cash equivalents, unrealized gains | 0 | |||
Cash and cash equivalents, unrealized losses | 0 | |||
Cash and cash equivalents, aggregate fair value | 22 | |||
Total cash equivalents | ||||
Schedule of Investments [Line Items] | ||||
Cash and Cash Equivalents, cost or amortized cost | 2,069 | 1,768 | ||
Cash and cash equivalents, unrealized gains | 0 | 0 | ||
Cash and cash equivalents, unrealized losses | 0 | 0 | ||
Cash and cash equivalents, aggregate fair value | $ 2,069 | $ 1,768 |
Cash, Cash Equivalents and In38
Cash, Cash Equivalents and Investments (Unrealized Losses On Cash Equivalents and Investments) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Fair Value | $ 1,109 | $ 3,392 |
Unrealized Losses | (2) | (15) |
U.S. Government and agency obligations | ||
Schedule of Investments [Line Items] | ||
Fair Value | 106 | 657 |
Unrealized Losses | 0 | (3) |
U.S. and foreign corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Fair Value | 926 | 2,564 |
Unrealized Losses | (2) | (11) |
Mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Fair Value | 77 | 171 |
Unrealized Losses | $ 0 | $ (1) |
Cash, Cash Equivalents and In39
Cash, Cash Equivalents and Investments (Contractual Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized Cost Basis | ||
Due within one year | $ 1,741 | |
Due after 1 year through 5 years | 3,422 | |
Due after 5 years through 10 years | 113 | |
Due after 10 years | 171 | |
Short-term investments, cost or amortized cost | 5,447 | $ 5,031 |
Aggregate Fair Value | ||
Due within one year | 1,742 | |
Due after 1 year through 5 years | 3,434 | |
Due after 5 years through 10 years | 114 | |
Due after 10 years | 171 | |
Short-term investments, aggregate fair value | $ 5,461 | $ 5,016 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | $ 5,461 | $ 5,016 |
Other Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable available-for-sale equity securities | 17 | 18 |
Deferred compensation plan assets | 25 | 20 |
Notes payable to EMC | Notes payable | EMC | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument | 1,487 | 1,474 |
Other Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred compensation plan liabilities | 25 | 20 |
Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 12 | |
U.S. Government and agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 815 | 750 |
U.S. and foreign corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 3,758 | 3,252 |
Foreign governments and multi-national agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 35 | 35 |
Municipal obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 619 | 706 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 13 | 20 |
Mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 221 | 241 |
Municipal obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 22 | |
Money-market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,033 | 1,763 |
Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 14 | 5 |
Total cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,069 | 1,768 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 5,461 | 5,016 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 564 | 543 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 4,897 | 4,473 |
Fair Value, Measurements, Recurring | Other Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable available-for-sale equity securities | 17 | 18 |
Fair Value, Measurements, Recurring | Other Assets | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable available-for-sale equity securities | 17 | 18 |
Fair Value, Measurements, Recurring | Other Assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable available-for-sale equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Accrued expense and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, liability | (1) | |
Fair Value, Measurements, Recurring | Accrued expense and other | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, liability | 0 | |
Fair Value, Measurements, Recurring | Accrued expense and other | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, liability | (1) | |
Fair Value, Measurements, Recurring | Other current assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, asset | 4 | |
Fair Value, Measurements, Recurring | Other current assets | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, asset | 0 | |
Fair Value, Measurements, Recurring | Other current assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward contracts, asset | 4 | |
Fair Value, Measurements, Recurring | Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 12 | |
Fair Value, Measurements, Recurring | Time deposits | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Fair Value, Measurements, Recurring | Time deposits | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 12 | |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 815 | 750 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 564 | 543 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 251 | 207 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 3,758 | 3,252 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 3,758 | 3,252 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 35 | 35 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 35 | 35 |
Fair Value, Measurements, Recurring | Municipal obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 619 | 706 |
Fair Value, Measurements, Recurring | Municipal obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 0 | 0 |
Fair Value, Measurements, Recurring | Municipal obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 619 | 706 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 13 | 20 |
Fair Value, Measurements, Recurring | Asset-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 13 | 20 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 221 | 241 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments: | 221 | 241 |
Fair Value, Measurements, Recurring | Municipal obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 22 | |
Fair Value, Measurements, Recurring | Municipal obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | |
Fair Value, Measurements, Recurring | Municipal obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 22 | |
Fair Value, Measurements, Recurring | Money-market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,033 | 1,763 |
Fair Value, Measurements, Recurring | Money-market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,033 | 1,763 |
Fair Value, Measurements, Recurring | Money-market funds | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 14 | 5 |
Fair Value, Measurements, Recurring | Time deposits | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 14 | 5 |
Fair Value, Measurements, Recurring | Total cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,069 | 1,768 |
Fair Value, Measurements, Recurring | Total cash equivalents | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | 2,033 | 1,763 |
Fair Value, Measurements, Recurring | Total cash equivalents | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents: | $ 36 | $ 5 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured and Recorded at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment of strategic investments | $ 5 | $ 0 | |
Other Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Strategic Investments | $ 100 | $ 103 |
Derivatives and Hedging Activ42
Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Net loss on forward contracts and underlying foreign currency denominated assets and liabilities | $ 2 | $ 6 | |
Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on forward contracts not designated as hedging instruments | $ (23) | $ 40 | |
Not Designated As Hedging Instrument | Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Maximum maturity of forward contracts | 1 month | ||
Notional amount of forward contracts | $ 693 | $ 721 | |
Cash Flow Hedging | Designated As Hedging Instrument | Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Maximum maturity of forward contracts | 12 months | ||
Notional amount of forward contracts | $ 161 | $ 213 |
Unearned Revenues (Summary of U
Unearned Revenues (Summary of Unearned Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Unearned Revenue Arrangement [Line Items] | ||
Unearned revenues | $ 4,976 | $ 5,076 |
Unearned license revenues | ||
Unearned Revenue Arrangement [Line Items] | ||
Unearned revenues | 415 | 428 |
Unearned software maintenance revenues | ||
Unearned Revenue Arrangement [Line Items] | ||
Unearned revenues | $ 4,105 | 4,174 |
Unearned software maintenance revenues | Weighted Average | ||
Unearned Revenue Arrangement [Line Items] | ||
Revenue recognition term | 2 years | |
Unearned professional services revenues | ||
Unearned Revenue Arrangement [Line Items] | ||
Unearned revenues | $ 456 | $ 474 |
Stockholders' Equity (Stock Rep
Stockholders' Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2015 | Apr. 17, 2016 | Mar. 31, 2016 | |
Class A common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized amount remaining for repurchase | $ 835 | ||
Class A common stock | VMware Share Repurchase Programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase price | $ 438 | ||
Class A common shares repurchased (shares) | 5,366 | ||
Weighted-average price per share | $ 81.65 | ||
Subsequent Event [Member] | April 2016 Stock Repurchase Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized repurchase amount under stock repurchase program | $ 1,200 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Stock Option Activity) (Details) - Class A common stock shares in Millions, $ in Millions | Mar. 31, 2016USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, intrinsic value | $ | $ 35 |
VMware 2007 Equity and Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Ending balance (shares) | shares | 2.9 |
Stockholders' Equity (Share-Bas
Stockholders' Equity (Share-Based Compensation) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Unrecognized compensation cost for stock options and restricted stock | $ 1,029 |
Weighted-average remaining recognition period | 1 year 4 months 17 days |
Stockholders' Equity (Summary47
Stockholders' Equity (Summary of Restricted Stock Activity) (Details) - Class A common stock $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Restricted Stock | |
Number of Units | |
Outstanding, number of shares (in shares) | shares | 18,693 |
Granted, number of shares (in shares) | shares | 1,690 |
Vested, number of shares (in shares) | shares | (1,220) |
Forfeited, number of shares (in shares) | shares | (1,085) |
Outstanding, number of shares (in shares) | shares | 18,078 |
Weighted-Average Grant Date Fair Value | |
Outstanding, weighted-average grant date fair value (USD per share) | $ / shares | $ 77.29 |
Granted, weighted-average grant date fair value (USD per share) | $ / shares | 51.38 |
Vested, weighted-average grant date fair value (USD per share) | $ / shares | 76.88 |
Forfeited, weighted-average grant date fair value (USD per share) | $ / shares | 81.33 |
Outstanding, weighted-average grant date fair value (USD per share) | $ / shares | $ 74.65 |
Fair value of restricted stock-based awards, vested | $ | $ 61 |
Aggregate intrinsic value | $ | $ 946 |
Minimum | 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 | 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 | 2 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | $ 7,923 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 20 | $ 1 |
Balance | 8,271 | |
Other Comprehensive Income (Loss) before Reclassifications, Tax [Abstract] | ||
Tax effect on unrealized gains (losses) on available-for-sale securities | 11 | 4 |
Tax effect on unrealized gains (losses) on effective foreign currency forward contracts | 0 | 0 |
Tax effect on unrealized gains (losses) | 11 | 4 |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (7) | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 18 | 6 |
Balance | 11 | 6 |
Unrealized Gain (Loss) on Forward Contracts | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (1) | (1) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 2 | (5) |
Balance | 1 | (6) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance | (8) | (1) |
Balance | $ 12 | $ 0 |
Related Parties (Schedule of Re
Related Parties (Schedule of Related Party Transactions) (Details) - EMC - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Reseller revenues | |||
Related Party Transaction [Line Items] | |||
Revenues | $ 79 | $ 61 | |
Unearned revenues | 276 | $ 292 | |
Internal-use revenues | |||
Related Party Transaction [Line Items] | |||
Revenues | 5 | 3 | |
Unearned revenues | 6 | 11 | |
Professional services revenues | |||
Related Party Transaction [Line Items] | |||
Revenues | 25 | 23 | |
Unearned revenues | 0 | 3 | |
Agency fee revenues | |||
Related Party Transaction [Line Items] | |||
Revenues | 1 | 1 | |
Unearned revenues | 0 | $ 0 | |
Reimbursement for services to Pivotal | |||
Related Party Transaction [Line Items] | |||
Revenues | 1 | 1 | |
Purchases and leases of products and purchases of services | |||
Related Party Transaction [Line Items] | |||
Related party costs | 17 | 19 | |
Collaborative technology project costs | |||
Related Party Transaction [Line Items] | |||
Related party costs | 0 | 1 | |
EMC subsidiary support and administrative costs | |||
Related Party Transaction [Line Items] | |||
Related party costs | 23 | 28 | |
Purchases of products through channel | |||
Related Party Transaction [Line Items] | |||
Related party costs | $ 0 | $ 8 |
Related Parties (Tax Sharing Ag
Related Parties (Tax Sharing Agreement) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Cash paid for taxes, net | $ 63 | $ 74 |
EMC | Tax Sharing Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Cash paid for taxes, net | $ 40 | $ 49 |
Related Parties (Due To_From Re
Related Parties (Due To/From Related Parties) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Related party transaction, other than tax obligation due to or from related party, cash settlement period | 60 days | |
EMC | ||
Related Party Transaction [Line Items] | ||
Due (to) related parties | $ (51) | $ (68) |
Due from related parties | 63 | 142 |
Due (to) from related parties, net | 12 | 74 |
Income tax due (to) from related parties | $ (2) | $ (18) |
Related Parties (Note Payable t
Related Parties (Note Payable to EMC) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Jan. 21, 2014 | |
Related Party Transaction [Line Items] | ||||
Notes payable to EMC | $ 1,500 | $ 1,500 | ||
Interest Expense, Related Party | $ 7 | $ 6 | ||
EMC | ||||
Related Party Transaction [Line Items] | ||||
Notes payable to EMC | $ 450 | |||
Notes payable | EMC | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | 1,500 | |||
Note, May 2018 | Notes payable | EMC | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 680 | |||
Interest rate | 1.75% | |||
Note, May 2020 | Notes payable | EMC | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 550 | |||
Interest rate | 1.75% | |||
Note, December 2022 | Notes payable | EMC | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 270 | |||
Interest rate | 1.75% |
Segment Information (Schedule O
Segment Information (Schedule Of Revenues By Geographic Area) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | |
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Number of reportable segments | segment | 1 | |
Revenues | $ 1,589 | $ 1,511 |
United States | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Revenues | 800 | 762 |
International | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Revenues | $ 789 | $ 749 |
Segment Information (Schedule54
Segment Information (Schedule Of Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | $ 961 | $ 979 |
United States | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | 817 | 831 |
International | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | $ 144 | $ 148 |