Vmware (VMW) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 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	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		111,565,890
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		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
License		$ 691	$ 681	$ 1,907	$ 1,896
Services		1,087	991	3,153	2,883
GSA settlement		0	0	0	(76)
Total revenue		1,778	1,672	5,060	4,703
Operating expenses:
Cost of license revenue	[1]	40	46	121	142
Cost of services revenue	[1]	226	212	658	609
Research and development	[1]	389	331	1,109	958
Sales and marketing	[1]	564	556	1,708	1,656
General and administrative	[1]	178	201	516	568
Realignment	[1]	0	0	52	20
Operating income		381	326	896	750
Investment income		21	13	56	38
Interest expense with Dell		(7)	(7)	(20)	(20)
Other income (expense), net		(8)	(7)	(8)	(8)
Income before income taxes		387	325	924	760
Income tax provision		68	69	179	137
Net income		$ 319	$ 256	$ 745	$ 623
Net income per weighted-average share, basic for Class A and Class B (USD per share)		$ 0.76	$ 0.61	$ 1.76	$ 1.47
Net income per weighted-average share, diluted for Class A and Class B (USD per share)		$ 0.75	$ 0.60	$ 1.75	$ 1.46
Weighted-average shares, basic for Class A and Class B (shares)		421,704	422,329	423,341	424,799
Weighted-average shares, diluted for Class A and Class B (shares)		425,008	423,981	425,851	427,466
Cost of license revenue
Operating expenses:
Stock-based compensation		$ 0	$ 0	$ 2	$ 1
Cost of services revenue
Operating expenses:
Stock-based compensation		13	11	38	32
Research and development
Operating expenses:
Stock-based compensation		80	56	224	164
Sales and marketing
Operating expenses:
Stock-based compensation		51	43	146	124
General and administrative
Operating expenses:
Stock-based compensation		$ 26	$ 16	$ 62	$ 47
[1]	Includes stock-based compensation as follows: Cost of license revenue $0 $0 $2 $1, Cost of services revenue $13 $11 $38 $32, Research and development $80 $56 $224 $164, Sales and marketing $51 $43 $146 $124, General and administrative $26 $16 $62 $47.

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 319	$ 256	$ 745	$ 623
Changes in market value of available-for-sale securities:
Unrealized gains (losses), net of taxes of $(2), $1, $12 and $1	(4)	1	19	2
Reclassification of (gains) losses realized during the period, net of taxes of $0, $0, $3 and $0	0	0	4	0
Net change in market value of available-for-sale securities	(4)	1	23	2
Changes in market value of effective foreign currency forward contracts:
Unrealized gains (losses), net of taxes of $0 for all periods	0	1	0	(4)
Reclassification of (gains) losses realized during the period, net of taxes of $0 for all periods	0	(2)	1	0
Net change in market value of effective foreign currency forward contracts	0	(1)	1	(4)
Total other comprehensive income (loss)	(4)	0	24	(2)
Total comprehensive income (loss), net of taxes	$ 315	$ 256	$ 769	$ 621

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Tax effect on unrealized gains (losses) on available-for-sale securities	$ (2)	$ 1	$ 12	$ 1
Tax effect on reclassification of (gains) losses on available-for-sale securities realized during the period	0	0	3	0
Tax effect on unrealized gains (losses) on effective foreign currency forward contracts	0	0	0	0
Tax effect on reclassification of (gains) losses on effective foreign currency forward contracts realized during the period	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 2,654	$ 2,493
Short-term investments	5,600	5,016
Accounts receivable, net of allowance for doubtful accounts of $2 and $2	1,119	1,633
Due from related parties, net	23	74
Other current assets	159	144
Total current assets	9,555	9,360
Property and equipment, net	1,050	1,128
Other assets	232	193
Deferred tax assets	462	456
Intangible assets, net	538	616
Goodwill	4,032	3,993
Total assets	15,869	15,746
Current liabilities:
Accounts payable	104	138
Accrued expenses and other	649	746
Unearned revenue	3,279	3,245
Total current liabilities	4,032	4,129
Notes payable to Dell	1,500	1,500
Unearned revenue	1,815	1,831
Other liabilities	388	363
Total liabilities	7,735	7,823
Contingencies
Stockholders’ equity:
Additional paid-in capital	2,174	2,728
Accumulated other comprehensive income (loss)	16	(8)
Retained earnings	5,940	5,195
Total VMware, Inc.’s stockholders’ equity	8,134	7,919
Non-controlling interests	0	4
Total stockholders’ equity	8,134	7,923
Total liabilities and stockholders’ equity	15,869	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	Sep. 30, 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)	113,870,000	121,947,000
Common stock, shares outstanding (shares)	113,870,000	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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net income	$ 745	$ 623
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	261	246
Stock-based compensation	472	368
Excess tax benefits from stock-based compensation	(7)	(27)
Deferred income taxes, net	(24)	(44)
Impairment of strategic investments	12	5
Gain on sales of strategic investments	(1)	0
Loss on disposal of assets	12	0
Other	(1)	0
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	513	508
Other assets	(22)	14
Due to/from related parties, net	55	31
Accounts payable	(26)	(36)
Accrued expenses	(64)	(153)
Income taxes payable	(26)	24
Unearned revenue	18	(148)
Net cash provided by operating activities	1,917	1,411
Investing activities:
Additions to property and equipment	(109)	(274)
Purchases of available-for-sale securities	(3,337)	(2,675)
Sales of available-for-sale securities	1,769	1,700
Maturities of available-for-sale securities	1,015	840
Proceeds from disposal of assets	3	0
Purchases of strategic investments	(33)	(11)
Sales of strategic investments	1	2
Business acquisitions, net of cash acquired	(59)	(21)
Decrease (increase) in restricted cash	(2)	77
Net cash used in investing activities	(752)	(362)
Financing activities:
Proceeds from issuance of common stock	106	123
Proceeds from non-controlling interests	0	4
Payment to acquire non-controlling interests	(4)	0
Repurchase of common stock	(1,016)	(1,050)
Excess tax benefits from stock-based compensation	7	27
Shares repurchased for tax withholdings on vesting of restricted stock	(97)	(141)
Net cash used in financing activities	(1,004)	(1,037)
Net increase in cash and cash equivalents	161	12
Cash and cash equivalents at beginning of the period	2,493	2,071
Cash and cash equivalents at end of the period	2,654	2,083
Supplemental disclosures of cash flow information:
Cash paid for interest	21	21
Cash paid for taxes, net	212	155
Non-cash items:
Changes in capital additions, accrued but not paid	$ (15)	$ (49)

Overview and Basis of Presentat

Overview and Basis of Presentation	9 Months Ended
	Sep. 30, 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. Effective September 7, 2016, Dell Technologies Inc. (“Dell”) (formerly Denali Holding Inc.) acquired EMC Corporation (“EMC”) which resulted in a change in control of VMware (the “Dell Acquisition”). As a result of the Dell Acquisition, EMC became a wholly-owned subsidiary of Dell and VMware became an indirectly-held, majority-owned subsidiary of Dell. As of September 30, 2016 , Dell controlled 82.9% of VMware’s outstanding common stock and 97.7% of the combined voting power of VMware’s outstanding common stock held by EMC, including 43 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. In connection with the Dell Acquisition, Michael S. Dell was elected to the VMware Board of Directors as Chairman and Egon Durban was elected to the VMware Board. Additionally, both Joseph M. Tucci, VMware’s Chairman of the Board, and John R. Egan resigned from the VMware Board. As VMware is a majority-owned and controlled subsidiary of Dell, its results of operations and financial position are consolidated with Dell’s financial statements. Pushdown accounting was not applied as a result of the Dell Acquisition and consequently no change in basis was reflected in VMware’s condensed consolidated financial statements. References to transactions with Dell within the financial statements and accompanying notes include transactions with EMC prior to September 7, 2016. Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with Dell and its consolidated subsidiaries 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 Dell. 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. During the second quarter of 2016, VMware acquired all of the non-controlling interests previously presented as a separate component within total stockholders’ equity. Refer to Note B for further discussion. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated 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 revenue 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 October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance requires the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective in annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted during the first interim period of a fiscal year, and requires a modified retrospective transition method. The Company is currently evaluating the effect that ASU 2016-16 will have on its consolidated financial statements and related disclosures. During March 2016, the FASB issued 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, ASU 2016-10 and ASU 2016-12, which provide interpretive clarifications on the new guidance in Topic 606. The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted for annual periods beginning after December 15, 2016. The Company has not selected a transition method and is currently evaluating the effect that the updates will have on its consolidated financial statements and related disclosures.

Business Combination, Definite-

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture	Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture Business Combination On June 21, 2016, VMware acquired all of the outstanding shares of Arkin Net, Inc. (“Arkin”) for approximately $67 million of cash, net of liabilities assumed. VMware acquired Arkin, a provider of software-defined data center security and operations, as part of a strategy to accelerate customers’ adoption of VMware NSX and software-defined data centers. The pro forma financial information assuming the acquisition had occurred as of the beginning of the calendar year prior to the year of acquisition, as well as the revenue and earnings generated during the current year, were not material for disclosure purposes. The following table summarizes the preliminary allocation of the consideration to the fair value of the assets acquired and liabilities assumed (table in millions): Cash $ 7 Intangible assets 26 Goodwill 38 Deferred tax assets 5 Other acquired assets 1 Total assets acquired 77 Deferred tax liabilities (10 ) Total liabilities assumed (10 ) Fair value of assets acquired and liabilities assumed $ 67 The identifiable intangible assets acquired were primarily related to purchased technology with estimated useful lives of four to five years . Goodwill is not expected to be deductible for U.S. income tax purposes. Prior to the closing of the acquisition on June 21, 2016, EMC owned approximately 16% of the outstanding shares of Arkin. As a result of the acquisition, cash paid to EMC was approximately $13 million . Definite-Lived Intangible Assets, Net As of September 30, 2016 and December 31, 2015 , definite-lived intangible assets consisted of the following (amounts in tables in millions): September 30, 2016 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 632 $ (337 ) $ 295 Leasehold interest 34.9 149 (23 ) 126 Customer relationships and customer lists 8.2 135 (60 ) 75 Trademarks and tradenames 8.6 61 (22 ) 39 Other 5.4 5 (2 ) 3 Total definite-lived intangible assets $ 982 $ (444 ) $ 538 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 $33 million and $99 million during the three and nine months ended September 30, 2016 , respectively, and $36 million and $110 million during the three and nine months ended September 30, 2015 , respectively. Based on intangible assets recorded as of September 30, 2016 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense is expected to be as follows (table in millions): Remainder of 2016 $ 32 2017 125 2018 115 2019 92 2020 42 Thereafter 132 Total $ 538 Goodwill The following table summarizes the changes in the carrying amount of goodwill during the nine months ended September 30, 2016 (table in millions): Balance, January 1, 2016 3,993 Increase in goodwill related to a business combination 39 Balance, September 30, 2016 $ 4,032 Joint Venture During the year ended December 31, 2014, VMware established a joint venture intended to expand VMware vCloud Air services in Japan. At December 31, 2015, VMware had a controlling interest in the joint venture and approximately 51% of the ownership. Accordingly, VMware consolidated the financial results of the joint venture. During the second quarter of 2016, VMware acquired all of the remaining non-controlling interests in the joint venture for $4 million .

Realignment

Realignment	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Realignment	Realignment 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 nine months ended September 30, 2016 . VMware recognized $49 million of severance-related realignment expenses during the nine months ended September 30, 2016 on the condensed consolidated statements of income. Additionally, VMware consolidated certain facilities as part of this plan, which resulted in the recognition of $3 million of related expenses during the nine months ended September 30, 2016 on the condensed consolidated statements of income. Actions associated with this plan were substantially completed by June 30, 2016. During fiscal 2015, VMware eliminated approximately 350 positions across all major functional groups and geographies to streamline its operations. As a result of these actions, $20 million of realignment expenses were recognized during the nine months ended September 30, 2015, which consisted of severance-related costs. The following table summarizes the activity for the accrued realignment expenses for the nine months ended September 30, 2016 and September 30, 2015 (tables in millions): For the Nine Months Ended September 30, 2016 Balance as of January 1, 2016 Realignment Utilization Balance as of September 30, 2016 Severance-related costs $ 3 $ 49 $ (51 ) $ 1 Costs to exit facilities — 3 (1 ) 2 Total $ 3 $ 52 $ (52 ) $ 3 For the Nine Months Ended September 30, 2015 Balance as of January 1, 2015 Realignment Utilization Balance as of September 30, 2015 Severance-related costs $ 8 20 (27 ) $ 1

Net Income per Share

Net Income per Share	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2016 and 2015 (net income in millions, shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income $ 319 $ 256 $ 745 $ 623 Weighted-average shares, basic for Class A and Class B 421,704 422,329 423,341 424,799 Effect of dilutive securities 3,304 1,652 2,510 2,667 Weighted-average shares, diluted for Class A and Class B 425,008 423,981 425,851 427,466 Net income per weighted-average share, basic for Class A and Class B $ 0.76 $ 0.61 $ 1.76 $ 1.47 Net income per weighted-average share, diluted for Class A and Class B $ 0.75 $ 0.60 $ 1.75 $ 1.46 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 and nine months ended September 30, 2016 and 2015 , because their effect would have been anti-dilutive (shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Anti-dilutive securities: Employee stock options 1,655 2,129 2,027 2,173 Restricted stock units 3,632 365 2,416 58 Total 5,287 2,494 4,443 2,231

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Cash, Cash Equivalents and Investments	Cash, Cash Equivalents and Investments Cash, cash equivalents and investments as of September 30, 2016 and December 31, 2015 consisted of the following (tables in millions): September 30, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Cash $ 565 $ — $ — $ 565 Cash equivalents: Money-market funds $ 2,015 $ — $ — $ 2,015 Time deposits 35 — — 35 Municipal obligations 39 — — 39 Total cash equivalents $ 2,089 $ — $ — $ 2,089 Short-term investments: U.S. Government and agency obligations $ 818 $ 2 $ — $ 820 U.S. and foreign corporate debt securities 4,109 19 (2 ) 4,126 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 401 — — 401 Asset-backed securities 5 — — 5 Mortgage-backed securities 213 1 (1 ) 213 Total short-term investments $ 5,581 $ 22 $ (3 ) $ 5,600 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 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 available-for-sale investments as of September 30, 2016 and December 31, 2015 to determine whether or not any security had experienced an other-than-temporary decline in fair value. As of September 30, 2016 and December 31, 2015 , VMware did not consider any of its available-for-sale investments to be other-than-temporarily impaired. The realized gains and losses on investments during the three and nine months ended September 30, 2016 and 2015 were not significant. Unrealized losses on cash equivalents and available-for-sale investments as of September 30, 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): September 30, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 170 $ — $ 657 $ (3 ) U.S. and foreign corporate debt securities 915 (2 ) 2,564 (11 ) Mortgage-backed securities 88 (1 ) 171 (1 ) Total $ 1,173 $ (3 ) $ 3,392 $ (15 ) As of September 30, 2016 and December 31, 2015 , unrealized losses on cash equivalents and available-for-sale investments in the other investment categories, which have been in a net loss position for less than twelve months, were not significant. 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 significant as of September 30, 2016 and December 31, 2015 . Contractual Maturities The contractual maturities of short-term investments held at September 30, 2016 consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,693 $ 1,694 Due after 1 year through 5 years 3,545 3,562 Due after 5 years through 10 years 111 112 Due after 10 years 232 232 Total short-term investments $ 5,581 $ 5,600

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 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 Dell. At September 30, 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 significant assets or liabilities that fell into Level 3 of the fair value hierarchy as of September 30, 2016 and December 31, 2015 , and there have been no transfers between fair value measurement levels during the three and nine months ended September 30, 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 September 30, 2016 and December 31, 2015 (tables in millions): September 30, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,015 $ — $ 2,015 Time deposits — 35 35 Municipal obligations — 39 39 Total cash equivalents $ 2,015 $ 74 $ 2,089 Short-term investments: U.S. Government and agency obligations $ 485 $ 335 $ 820 U.S. and foreign corporate debt securities — 4,126 4,126 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 401 401 Asset-backed securities — 5 5 Mortgage-backed securities — 213 213 Total short-term investments $ 485 $ 5,115 $ 5,600 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 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 Dell at fair value, but has measured the notes at fair value for disclosure purposes. As of September 30, 2016 , the fair value of the notes payable to Dell approximated its carrying value due to the minimal difference between the fair market interest rate as of September 30, 2016 and the fixed interest rate for the notes payable to Dell. As of December 31, 2015 , the fair value of the notes payable to Dell was approximately $1,474 million . Fair value was estimated primarily 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 significant 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 $33 million and $20 million as of September 30, 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 and nine months ended September 30, 2016 , VMware determined that certain strategic investments were considered to be other-than-temporarily impaired and accordingly, approximately $7 million and $12 million , respectively, was recognized as an impairment charge. During the three and nine months ended September 30, 2015 , approximately $5 million was recognized as an impairment charge. All other realized gains and losses on investments during the three and nine months ended September 30, 2016 and 2015 were not significant. Strategic investments are included in other assets on the condensed consolidated balance sheets. The carrying value of VMware’s strategic investments was $124 million and $103 million as of September 30, 2016 and December 31, 2015 , respectively.

Derivatives and Hedging Activit

Derivatives and Hedging Activities	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2016 and 2015 , the effective portion of gains or losses reclassified to the condensed consolidated statements of income was not significant. 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 September 30, 2016 and December 31, 2015 , VMware had forward contracts designated as cash flow hedges with a total notional value of $54 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 and nine months ended September 30, 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 September 30, 2016 and December 31, 2015 , VMware had outstanding forward contracts with a total notional value of $539 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. VMware recognized a loss of $12 million during the nine months ended September 30, 2016 relating to the settlement of forward contracts. During the three and nine months ended September 30, 2015 , VMware recognized gains of $12 million and $33 million , respectively. 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 $10 million during the nine months ended September 30, 2015 , respectively, and were not significant for all other periods presented. Net gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income.

Unearned Revenue

Unearned Revenue	9 Months Ended
	Sep. 30, 2016
Deferred Revenue Disclosure [Abstract]
Unearned Revenue	Unearned Revenue Unearned revenue as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): September 30, 2016 December 31, 2015 Unearned license revenue $ 425 $ 428 Unearned software maintenance revenue 4,201 4,174 Unearned professional services revenue 468 474 Total unearned revenue $ 5,094 $ 5,076 Unearned license revenue is 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 revenue 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 revenue is attributable to VMware’s maintenance contracts and are generally recognized ratably over the contract period. The weighted-average remaining term at September 30, 2016 was approximately two years . Unearned professional services revenue results primarily from prepaid professional services, including training, and are generally recognized as the services are delivered. Unearned license and software maintenance revenue 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 revenue derived from transactions denominated in a foreign currency is impacted by fluctuations in the foreign currencies in which VMware invoices.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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 in process of being rescheduled to 2017. 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. On July 8, 2016, the German court issued a written decision dismissing Mr. Hellwig’s lawsuit because he failed to show that his protectable software code had been used in VMware’s product. On August 9, 2016, a Notice of Appeal was filed. While VMware believes that it has valid defenses against each of the above legal matters, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 included the amount remaining from VMware’s previous stock repurchase authorization announced on January 27, 2015 of $835 million . All shares repurchased under VMware’s stock repurchase programs are retired. The cumulative authorized amount remaining for stock repurchases as of September 30, 2016 was utilized during the fourth quarter of fiscal 2016. The following table summarizes stock repurchase activity during the three and nine months ended September 30, 2016 and 2015 (aggregate purchase price in millions, shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Aggregate purchase price $ 1,016 $ 200 $ 1,016 $ 1,050 Class A common shares repurchased 13,999 2,408 13,999 12,524 Weighted-average price per share $ 72.57 $ 83.06 $ 72.57 $ 83.84 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 significant during the nine months ended September 30, 2016 . As of September 30, 2016 , there were 2.2 million stock options outstanding. The stock options outstanding as of September 30, 2016 had an aggregate intrinsic value of $43 million based on VMware’s closing stock price as of September 30, 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 during the nine months ended September 30, 2016 (units in thousands): Number of Units Weighted- Average Grant Date Fair Value (per unit) Outstanding, January 1, 2016 18,693 $ 77.29 Granted 11,008 57.73 Vested (4,660 ) 79.72 Forfeited (2,916 ) 77.01 Outstanding, September 30, 2016 22,125 67.08 The total fair value of VMware restricted stock that vested during the nine months ended September 30, 2016 was $272 million . As of September 30, 2016 , restricted stock representing 22.1 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $1,623 million based on VMware’s closing stock price as of September 30, 2016 . As of September 30, 2016, the total unrecognized compensation cost for stock options and restricted stock was $1,080 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 nine months ended September 30, 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 gains (losses), net of taxes of $12, $0 and $12 19 — 19 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income, net of taxes of $3, $0 and $3 4 1 5 Balance, September 30, 2016 $ 16 $ — $ 16 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Forward Contracts Total Balance, January 1, 2015 $ — $ (1 ) $ (1 ) Unrealized gains (losses), net of taxes of $1, $0 and $1 2 (4 ) (2 ) Balance, September 30, 2015 $ 2 $ (5 ) $ (3 ) 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 and nine months ended September 30, 2016 and 2015 were not significant to the individual functional line items.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Parties	Related Parties The information provided below includes a summary of the transactions entered into with Dell and Dell’s consolidated subsidiaries including EMC (collectively “Dell”) from the effective date of the Dell Acquisition through September 30, 2016. References to transactions with Dell include transactions with EMC prior to September 7, 2016. Transactions with Dell VMware and Dell engaged in the following ongoing intercompany transactions, which resulted in revenue and receipts and unearned revenue for VMware: • Pursuant to ongoing reseller arrangements with Dell, Dell bundles VMware’s products and services with Dell’s products and sells them to end users. • Dell purchases products and services from VMware for internal use. • VMware provides professional services to end users based upon contractual agreements with Dell. • 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 Dell, 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 revenue and receipts from such arrangements during the three and nine months ended September 30, 2016 and 2015 and unearned revenue from such arrangements as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): Revenue and Receipts Unearned Revenue Three Months Ended Nine Months Ended As of As of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Reseller revenue $ 98 $ 68 $ 261 $ 199 $ 553 $ 292 Internal-use revenue 5 4 24 13 17 11 Professional services revenue 28 20 79 68 — 3 Agency fee revenue 1 1 3 4 — — Reimbursement for services to Pivotal — 2 1 3 n/a n/a VMware and Dell engaged in the following ongoing intercompany transactions, which resulted in costs to VMware: • VMware purchases and leases products and purchases services from Dell. • From time to time, VMware and Dell enter into agreements to collaborate on technology projects, and VMware pays Dell for services provided to VMware by Dell related to such projects. • In certain geographic regions where VMware does not have an established legal entity, VMware contracts with Dell subsidiaries for support services and Dell personnel who are managed by VMware. The costs incurred by Dell 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. Dell 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 Dell for certain services rendered by Dell. Cash related to these services is collected from the end user by VMware and remitted to Dell. Information about VMware’s costs from such arrangements for the three and nine months ended September 30, 2016 and 2015 consisted of the following (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Purchases and leases of products and purchases of services $ 24 $ 14 $ 58 $ 45 Collaborative technology project costs — 1 — 4 Dell subsidiary support and administrative costs 30 24 74 79 VMware also purchases Dell products through Dell’s channel partners. Purchases of Dell products through Dell’s channel partners were not significant during the three and nine months ended September 30, 2016 . Purchases of Dell products through Dell’s channel partners were $7 million and $33 million during the three and nine months ended September 30, 2015 , respectively. Dell Financial Services (“DFS”) DFS provides financing to certain of VMware’s end customers based on the customer’s discretion. Upon acceptance of the financing arrangement by both VMware’s end customer and DFS, amounts classified as trade accounts receivable are reclassified to due from related parties on the condensed consolidated balance sheets. Amounts due from DFS as of September 30, 2016 were not significant. Tax Sharing Agreement with Dell On September 6, 2016, VMware entered into an amended tax sharing agreement with Dell, in connection with, and effective as of, the Dell Acquisition. The amended tax sharing agreement amends and restates the tax sharing agreement dated August 13, 2007 between VMware and EMC. Key contractual terms of the amended tax sharing agreement are substantially unchanged from the original agreement with EMC. VMware has made payments to Dell pursuant to the tax sharing agreement. The following table summarizes the payments made during the three and nine months ended September 30, 2016 and 2015 (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Payments from VMware to Dell $ 54 $ — $ 148 $ 92 Payments from VMware to Dell under the tax sharing agreement relate to VMware’s portion of federal income taxes on Dell’s consolidated tax return as well as the state payments for combined states. The timing of the tax payments due to and from related parties is governed by the tax sharing agreement. The amounts that VMware pays to Dell for its portion of federal income taxes on Dell’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. 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 significant during the three months ended September 30, 2016 and was $13 million during the nine months ended September 30, 2016 . During the three and nine months ended September 30, 2015 , the difference was not significant. EMC Equity Awards Held by VMware Employees In connection with the Dell Acquisition, vesting was accelerated for all outstanding EMC stock options and restricted stock units and stock options were automatically exercised on the last trading day prior to the effective date of the merger. VMware’s portion of the expense associated with accelerated EMC equity awards held by VMware employees was $7 million and was included within stock-based compensation expense on the condensed consolidated statement of income during the three and nine months ended September 30, 2016 . Due To/From Related Parties, Net As a result of the related party transactions with Dell described above, amounts due to and from related parties, net as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): September 30, December 31, 2016 2015 Due (to) related parties $ (54 ) $ (68 ) Due from related parties 77 142 Due (to) from related parties, net $ 23 $ 74 Income tax due (to) from related parties $ — $ (18 ) Balances due to and from related parties, which are unrelated to DFS and tax obligations, are generally settled in cash within 60 days of each quarter-end. Notes Payable to Dell VMware and Dell 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 Dell 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 and nine months ended September 30, 2016 , $7 million and $20 million , respectively, of interest expense was recognized. During the three and nine months ended September 30, 2015 , $7 million and $20 million , respectively, of interest expense was recognized. Pivotal During 2013, VMware transferred certain assets and liabilities to Pivotal in exchange for preferred equity interests in Pivotal’s outstanding shares. As of December 31, 2015, VMware’s ownership interest in Pivotal was 28% . In April 2016, VMware contributed $20 million in cash to Pivotal in exchange for additional preferred equity interests in Pivotal. After VMware’s contribution, VMware’s ownership interest in Pivotal was 17% and the cost method is being applied to this strategic investment. The decrease in VMware’s ownership interest was a result of investments made by other investors.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information VMware operates in one reportable operating segment, thus all required financial segment information can be found on the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for 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. Revenue by geographic area for the three and nine months ended September 30, 2016 and 2015 were as follows (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 916 $ 861 $ 2,587 $ 2,364 International 862 811 2,473 2,339 Total $ 1,778 $ 1,672 $ 5,060 $ 4,703 Revenue 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 revenue for the three and nine months ended September 30, 2016 and 2015 . Long-lived assets by geographic area, which primarily include property and equipment, net, as of September 30, 2016 and December 31, 2015 were as follows (table in millions): September 30, 2016 December 31, 2015 United States $ 793 $ 831 International 128 148 Total $ 921 $ 979 No individual country other than the United States accounted for 10% or more of these assets as of September 30, 2016 and December 31, 2015 , respectively.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 25, 2016, the VMware Board of Directors approved a change to VMware’s fiscal year (which currently ends on December 31 of each calendar year) whereby each fiscal year will consist of a 52- or 53-week period ending on the Friday nearest to January 31 of each year. The change in VMware’s fiscal year will be effective January 1, 2017 with the period ending on February 3, 2017, which will be reported as a transition period. Accordingly, VMware’s first full fiscal year under the revised fiscal calendar will begin on February 4, 2017 and end on February 2, 2018.

Overview and Basis of Present21

Overview and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Unaudited Interim Financial Information	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. Effective September 7, 2016, Dell Technologies Inc. (“Dell”) (formerly Denali Holding Inc.) acquired EMC Corporation (“EMC”) which resulted in a change in control of VMware (the “Dell Acquisition”). As a result of the Dell Acquisition, EMC became a wholly-owned subsidiary of Dell and VMware became an indirectly-held, majority-owned subsidiary of Dell. As of September 30, 2016 , Dell controlled 82.9% of VMware’s outstanding common stock and 97.7% of the combined voting power of VMware’s outstanding common stock held by EMC, including 43 million shares of VMware’s Class A common stock and all of VMware’s Class B common stock. In connection with the Dell Acquisition, Michael S. Dell was elected to the VMware Board of Directors as Chairman and Egon Durban was elected to the VMware Board. Additionally, both Joseph M. Tucci, VMware’s Chairman of the Board, and John R. Egan resigned from the VMware Board. As VMware is a majority-owned and controlled subsidiary of Dell, its results of operations and financial position are consolidated with Dell’s financial statements. Pushdown accounting was not applied as a result of the Dell Acquisition and consequently no change in basis was reflected in VMware’s condensed consolidated financial statements. References to transactions with Dell within the financial statements and accompanying notes include transactions with EMC prior to September 7, 2016. Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s intercompany transactions with Dell and its consolidated subsidiaries 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 Dell.
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. During the second quarter of 2016, VMware acquired all of the non-controlling interests previously presented as a separate component within total stockholders’ equity. Refer to Note B for further discussion. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated 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 revenue 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 October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance requires the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective in annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted during the first interim period of a fiscal year, and requires a modified retrospective transition method. The Company is currently evaluating the effect that ASU 2016-16 will have on its consolidated financial statements and related disclosures. During March 2016, the FASB issued 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, ASU 2016-10 and ASU 2016-12, which provide interpretive clarifications on the new guidance in Topic 606. The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted for annual periods beginning after December 15, 2016. The Company has not selected a transition method and is currently evaluating the effect that the updates will have on its consolidated financial statements and related disclosures.

Business Combination, Definit22

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Tables)	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Schedule of Recognized Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of the consideration to the fair value of the assets acquired and liabilities assumed (table in millions): Cash $ 7 Intangible assets 26 Goodwill 38 Deferred tax assets 5 Other acquired assets 1 Total assets acquired 77 Deferred tax liabilities (10 ) Total liabilities assumed (10 ) Fair value of assets acquired and liabilities assumed $ 67
Schedule of Definite-Lived Intangible Assets	As of September 30, 2016 and December 31, 2015 , definite-lived intangible assets consisted of the following (amounts in tables in millions): September 30, 2016 Weighted-Average Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 6.6 $ 632 $ (337 ) $ 295 Leasehold interest 34.9 149 (23 ) 126 Customer relationships and customer lists 8.2 135 (60 ) 75 Trademarks and tradenames 8.6 61 (22 ) 39 Other 5.4 5 (2 ) 3 Total definite-lived intangible assets $ 982 $ (444 ) $ 538 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 Estimated Amortization Expense	Based on intangible assets recorded as of September 30, 2016 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense is expected to be as follows (table in millions): Remainder of 2016 $ 32 2017 125 2018 115 2019 92 2020 42 Thereafter 132 Total $ 538
Schedule of Changes in Carrying Amount of Goodwill	The following table summarizes the changes in the carrying amount of goodwill during the nine months ended September 30, 2016 (table in millions): Balance, January 1, 2016 3,993 Increase in goodwill related to a business combination 39 Balance, September 30, 2016 $ 4,032

Realignment (Tables)

Realignment (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Summary of Accrued Realignment Charges	The following table summarizes the activity for the accrued realignment expenses for the nine months ended September 30, 2016 and September 30, 2015 (tables in millions): For the Nine Months Ended September 30, 2016 Balance as of January 1, 2016 Realignment Utilization Balance as of September 30, 2016 Severance-related costs $ 3 $ 49 $ (51 ) $ 1 Costs to exit facilities — 3 (1 ) 2 Total $ 3 $ 52 $ (52 ) $ 3 For the Nine Months Ended September 30, 2015 Balance as of January 1, 2015 Realignment Utilization Balance as of September 30, 2015 Severance-related costs $ 8 20 (27 ) $ 1

Net Income per Share (Tables)

Net Income per Share (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2016 and 2015 (net income in millions, shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income $ 319 $ 256 $ 745 $ 623 Weighted-average shares, basic for Class A and Class B 421,704 422,329 423,341 424,799 Effect of dilutive securities 3,304 1,652 2,510 2,667 Weighted-average shares, diluted for Class A and Class B 425,008 423,981 425,851 427,466 Net income per weighted-average share, basic for Class A and Class B $ 0.76 $ 0.61 $ 1.76 $ 1.47 Net income per weighted-average share, diluted for Class A and Class B $ 0.75 $ 0.60 $ 1.75 $ 1.46
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 and nine months ended September 30, 2016 and 2015 , because their effect would have been anti-dilutive (shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Anti-dilutive securities: Employee stock options 1,655 2,129 2,027 2,173 Restricted stock units 3,632 365 2,416 58 Total 5,287 2,494 4,443 2,231

Cash, Cash Equivalents and In25

Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Cash, Cash Equivalents and Investments	Cash, cash equivalents and investments as of September 30, 2016 and December 31, 2015 consisted of the following (tables in millions): September 30, 2016 Cost or Amortized Cost Unrealized Gains Unrealized Losses Aggregate Cash $ 565 $ — $ — $ 565 Cash equivalents: Money-market funds $ 2,015 $ — $ — $ 2,015 Time deposits 35 — — 35 Municipal obligations 39 — — 39 Total cash equivalents $ 2,089 $ — $ — $ 2,089 Short-term investments: U.S. Government and agency obligations $ 818 $ 2 $ — $ 820 U.S. and foreign corporate debt securities 4,109 19 (2 ) 4,126 Foreign governments and multi-national agency obligations 35 — — 35 Municipal obligations 401 — — 401 Asset-backed securities 5 — — 5 Mortgage-backed securities 213 1 (1 ) 213 Total short-term investments $ 5,581 $ 22 $ (3 ) $ 5,600 Other assets: Marketable available-for-sale equity securities $ 15 $ 7 $ — $ 22 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 September 30, 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): September 30, 2016 December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government and agency obligations $ 170 $ — $ 657 $ (3 ) U.S. and foreign corporate debt securities 915 (2 ) 2,564 (11 ) Mortgage-backed securities 88 (1 ) 171 (1 ) Total $ 1,173 $ (3 ) $ 3,392 $ (15 )
Contractual Maturities of Investments	The contractual maturities of short-term investments held at September 30, 2016 consisted of the following (table in millions): Amortized Cost Basis Aggregate Fair Value Due within one year $ 1,693 $ 1,694 Due after 1 year through 5 years 3,545 3,562 Due after 5 years through 10 years 111 112 Due after 10 years 232 232 Total short-term investments $ 5,581 $ 5,600

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Hierarchy	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 September 30, 2016 and December 31, 2015 (tables in millions): September 30, 2016 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 2,015 $ — $ 2,015 Time deposits — 35 35 Municipal obligations — 39 39 Total cash equivalents $ 2,015 $ 74 $ 2,089 Short-term investments: U.S. Government and agency obligations $ 485 $ 335 $ 820 U.S. and foreign corporate debt securities — 4,126 4,126 Foreign governments and multi-national agency obligations — 35 35 Municipal obligations — 401 401 Asset-backed securities — 5 5 Mortgage-backed securities — 213 213 Total short-term investments $ 485 $ 5,115 $ 5,600 Other assets: Marketable available-for-sale equity securities $ 22 $ — $ 22 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 Revenue (Tables)

Unearned Revenue (Tables)	9 Months Ended
	Sep. 30, 2016
Deferred Revenue Disclosure [Abstract]
Summary of Unearned Revenue	Unearned revenue as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): September 30, 2016 December 31, 2015 Unearned license revenue $ 425 $ 428 Unearned software maintenance revenue 4,201 4,174 Unearned professional services revenue 468 474 Total unearned revenue $ 5,094 $ 5,076

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Stock Repurchase Program	The following table summarizes stock repurchase activity during the three and nine months ended September 30, 2016 and 2015 (aggregate purchase price in millions, shares in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Aggregate purchase price $ 1,016 $ 200 $ 1,016 $ 1,050 Class A common shares repurchased 13,999 2,408 13,999 12,524 Weighted-average price per share $ 72.57 $ 83.06 $ 72.57 $ 83.84
Summary of Restricted Stock Activity	The following table summarizes restricted stock activity during the nine months ended September 30, 2016 (units in thousands): Number of Units Weighted- Average Grant Date Fair Value (per unit) Outstanding, January 1, 2016 18,693 $ 77.29 Granted 11,008 57.73 Vested (4,660 ) 79.72 Forfeited (2,916 ) 77.01 Outstanding, September 30, 2016 22,125 67.08
Schedule of Accumulated Other Comprehensive Income (Loss)	The changes in components of accumulated other comprehensive income (loss) during the nine months ended September 30, 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 gains (losses), net of taxes of $12, $0 and $12 19 — 19 Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income, net of taxes of $3, $0 and $3 4 1 5 Balance, September 30, 2016 $ 16 $ — $ 16 Unrealized Gain (Loss) on Unrealized Gain (Loss) on Forward Contracts Total Balance, January 1, 2015 $ — $ (1 ) $ (1 ) Unrealized gains (losses), net of taxes of $1, $0 and $1 2 (4 ) (2 ) Balance, September 30, 2015 $ 2 $ (5 ) $ (3 )

Related Parties (Tables)

Related Parties (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Information about VMware’s costs from such arrangements for the three and nine months ended September 30, 2016 and 2015 consisted of the following (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Purchases and leases of products and purchases of services $ 24 $ 14 $ 58 $ 45 Collaborative technology project costs — 1 — 4 Dell subsidiary support and administrative costs 30 24 74 79 Information about VMware’s revenue and receipts from such arrangements during the three and nine months ended September 30, 2016 and 2015 and unearned revenue from such arrangements as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): Revenue and Receipts Unearned Revenue Three Months Ended Nine Months Ended As of As of September 30, September 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 Reseller revenue $ 98 $ 68 $ 261 $ 199 $ 553 $ 292 Internal-use revenue 5 4 24 13 17 11 Professional services revenue 28 20 79 68 — 3 Agency fee revenue 1 1 3 4 — — Reimbursement for services to Pivotal — 2 1 3 n/a n/a VMware has made payments to Dell pursuant to the tax sharing agreement. The following table summarizes the payments made during the three and nine months ended September 30, 2016 and 2015 (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Payments from VMware to Dell $ 54 $ — $ 148 $ 92 As a result of the related party transactions with Dell described above, amounts due to and from related parties, net as of September 30, 2016 and December 31, 2015 consisted of the following (table in millions): September 30, December 31, 2016 2015 Due (to) related parties $ (54 ) $ (68 ) Due from related parties 77 142 Due (to) from related parties, net $ 23 $ 74 Income tax due (to) from related parties $ — $ (18 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of Revenues by Geographic Area	Revenue by geographic area for the three and nine months ended September 30, 2016 and 2015 were as follows (table in millions): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 916 $ 861 $ 2,587 $ 2,364 International 862 811 2,473 2,339 Total $ 1,778 $ 1,672 $ 5,060 $ 4,703
Schedule of Long-Lived Assets by Geographic Area	Long-lived assets by geographic area, which primarily include property and equipment, net, as of September 30, 2016 and December 31, 2015 were as follows (table in millions): September 30, 2016 December 31, 2015 United States $ 793 $ 831 International 128 148 Total $ 921 $ 979

Overview and Basis of Present31

Overview and Basis of Presentation (Details) - Dell shares in Millions	Sep. 30, 2016shares
Related Party Transaction [Line Items]
Outstanding ownership percentage of VMware controlled by Dell	82.90%
Combined voting power of VMware's outstanding common stock controlled by Dell	97.70%
Class A common stock
Related Party Transaction [Line Items]
VMware's outstanding common stock held controlled by Dell (shares)	43

Business Combination, Definit32

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Business Combinations) (Details) - USD ($)	Jun. 21, 2016	Jun. 20, 2016
Arkin
Business Acquisition [Line Items]
Cash consideration paid	$ 67,000,000
Goodwill expected to be tax deductible	0
Dell | Arkin | Acquisition of Related Party Ownership Interest
Business Acquisition [Line Items]
Cash consideration paid	$ 13,000,000
Purchased technology | Minimum | Arkin
Business Acquisition [Line Items]
Weighted-average useful lives (in years)	4 years
Purchased technology | Maximum | Arkin
Business Acquisition [Line Items]
Weighted-average useful lives (in years)	5 years
EMC
Business Acquisition [Line Items]
Ownership percentage		16.00%

Business Combination, Definit33

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Jun. 21, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 4,032		$ 3,993
Arkin
Business Acquisition [Line Items]
Cash		$ 7
Intangible assets		26
Goodwill		38
Deferred tax assets		5
Other acquired assets		1
Total assets acquired		77
Deferred tax liabilities		(10)
Total liabilities assumed		10
Fair value of assets acquired and liabilities assumed		$ 67

Business Combination, Definit34

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Intangible Assets Detail) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 982		$ 982		$ 1,026
Accumulated Amortization	(444)		(444)		(410)
Net Book Value	538		538		616
Amortization Expense	33	$ 36	99	$ 110
Purchased technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	632		632		648
Accumulated Amortization	(337)		(337)		(298)
Net Book Value	295		295		350
Leasehold interest
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	149		149		149
Accumulated Amortization	(23)		(23)		(20)
Net Book Value	126		126		129
Customer relationships and customer lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	135		135		148
Accumulated Amortization	(60)		(60)		(62)
Net Book Value	75		75		86
Trademarks and tradenames
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	61		61		61
Accumulated Amortization	(22)		(22)		(16)
Net Book Value	39		39		45
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5		5		20
Accumulated Amortization	(2)		(2)		(14)
Net Book Value	$ 3		$ 3		$ 6
Weighted Average | 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
Weighted Average | 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
Weighted Average | Customer relationships and customer lists
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Lives (in years)			8 years 2 months 12 days		8 years 4 months 24 days
Weighted Average | 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
Weighted Average | Other
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Useful Lives (in years)			5 years 4 months 24 days		2 years 10 months 24 days

Business Combination, Definit35

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Amortization of Intangible Assets) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Business Combinations [Abstract]
Remainder of 2016	$ 32
2,017	125
2,018	115
2,019	92
2,020	42
Thereafter	132
Net Book Value	$ 538	$ 616

Business Combination, Definit36

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Goodwill) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Roll Forward]
Balance, January 1, 2016	$ 3,993
Increase in goodwill related to a business combination	39
Balance, September 30, 2016	$ 4,032

Business Combination, Definit37

Business Combination, Definite-Lived Intangible Assets, Net, Goodwill and Joint Venture (Joint Venture) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
Payment to acquire non-controlling interests		$ 4	$ 0
Joint Venture
Business Acquisition [Line Items]
Ownership percentage				51.00%
Payment to acquire non-controlling interests	$ 4

Realignment (Narrative) (Detail

Realignment (Narrative) (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)position	Sep. 30, 2015USD ($)position	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | position				800	350
Realignment	[1]	$ 0	$ 0	$ 52	$ 20
Restructuring Reserve		3		3		$ 3
Severance-related costs
Restructuring Cost and Reserve [Line Items]
Realignment				49	20
Restructuring Reserve		1	$ 1	1	$ 1	3	$ 8
Costs to exit facilities
Restructuring Cost and Reserve [Line Items]
Realignment				3
Restructuring Reserve		$ 2		$ 2		$ 0
[1]	Includes stock-based compensation as follows: Cost of license revenue $0 $0 $2 $1, Cost of services revenue $13 $11 $38 $32, Research and development $80 $56 $224 $164, Sales and marketing $51 $43 $146 $124, General and administrative $26 $16 $62 $47.

Realignment (Schedule of Restru

Realignment (Schedule of Restructuring Reserve) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning of Period				$ 3
Realignment	[1]	$ 0	$ 0	52	$ 20
Utilization				(52)
Restructuring Reserve, End of Period		3		3
Severance-related costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning of Period				3	8
Realignment				49	20
Utilization				(51)	(27)
Restructuring Reserve, End of Period		1	$ 1	1	$ 1
Costs to exit facilities
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning of Period				0
Realignment				3
Utilization				(1)
Restructuring Reserve, End of Period		$ 2		$ 2
[1]	Includes stock-based compensation as follows: Cost of license revenue $0 $0 $2 $1, Cost of services revenue $13 $11 $38 $32, Research and development $80 $56 $224 $164, Sales and marketing $51 $43 $146 $124, General and administrative $26 $16 $62 $47.

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 319	$ 256	$ 745	$ 623
Weighted-average shares, basic for Class A and Class B	421,704	422,329	423,341	424,799
Effect of dilutive securities	3,304	1,652	2,510	2,667
Weighted-average shares, diluted for Class A and Class B	425,008	423,981	425,851	427,466
Net income per weighted-average share, basic for Class A and Class B (USD per share)	$ 0.76	$ 0.61	$ 1.76	$ 1.47
Net income per weighted-average share, diluted for Class A and Class B (USD per share)	$ 0.75	$ 0.60	$ 1.75	$ 1.46

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities, amount	5,287	2,494	4,443	2,231
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities, amount	1,655	2,129	2,027	2,173
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities, amount	3,632	365	2,416	58

Cash, Cash Equivalents and In42

Cash, Cash Equivalents and Investments (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	$ 2,654	$ 2,493	$ 2,083	$ 2,071
Short-term investments, cost or amortized cost	5,581
Short-term investments, aggregate fair value	5,600
Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	5,581	5,031
Short-term investments, unrealized gains	22	2
Short-term investments, unrealized losses	(3)	(17)
Short-term investments, aggregate fair value	5,600	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	7	3
Marketable available-for-sale equity securities, unrealized losses	0	0
Marketable available-for-sale equity securities, aggregate fair value	22	18
Time deposits | Short Term Investments
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 | Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	818	753
Short-term investments, unrealized gains	2	0
Short-term investments, unrealized losses	0	(3)
Short-term investments, aggregate fair value	820	750
U.S. and foreign corporate debt securities | Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	4,109	3,263
Short-term investments, unrealized gains	19	1
Short-term investments, unrealized losses	(2)	(12)
Short-term investments, aggregate fair value	4,126	3,252
Foreign governments and multi-national agency obligations | Short Term Investments
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 | Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	401	705
Short-term investments, unrealized gains	0	1
Short-term investments, unrealized losses	0	0
Short-term investments, aggregate fair value	401	706
Asset-backed securities | Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	5	20
Short-term investments, unrealized gains	0	0
Short-term investments, unrealized losses	0	0
Short-term investments, aggregate fair value	5	20
Mortgage-backed securities | Short Term Investments
Schedule of Investments [Line Items]
Short-term investments, cost or amortized cost	213	243
Short-term investments, unrealized gains	1	0
Short-term investments, unrealized losses	(1)	(2)
Short-term investments, aggregate fair value	213	241
Cash | Cash and Cash Equivalents
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	565	725
Cash and cash equivalents, unrealized gains	0	0
Cash and cash equivalents, unrealized losses	0	0
Cash and cash equivalents, aggregate fair value	565	725
Money-market funds | Cash and Cash Equivalents
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	2,015	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	2,015	1,763
Time deposits | Cash and Cash Equivalents
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	35	5
Cash and cash equivalents, unrealized gains	0	0
Cash and cash equivalents, unrealized losses	0	0
Cash and cash equivalents, aggregate fair value	35	5
Municipal obligations | Cash and Cash Equivalents
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	39
Cash and cash equivalents, unrealized gains	0
Cash and cash equivalents, unrealized losses	0
Cash and cash equivalents, aggregate fair value	39
Total cash equivalents | Cash and Cash Equivalents
Schedule of Investments [Line Items]
Cash and Cash Equivalents, cost or amortized cost	2,089	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	$ 2,089	$ 1,768

Cash, Cash Equivalents and In43

Cash, Cash Equivalents and Investments (Unrealized Losses On Cash Equivalents and Investments) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Schedule of Investments [Line Items]
Fair Value	$ 1,173	$ 3,392
Unrealized Losses	(3)	(15)
U.S. Government and agency obligations
Schedule of Investments [Line Items]
Fair Value	170	657
Unrealized Losses	0	(3)
U.S. and foreign corporate debt securities
Schedule of Investments [Line Items]
Fair Value	915	2,564
Unrealized Losses	(2)	(11)
Mortgage-backed securities
Schedule of Investments [Line Items]
Fair Value	88	171
Unrealized Losses	$ (1)	$ (1)

Cash, Cash Equivalents and In44

Cash, Cash Equivalents and Investments (Contractual Maturities) (Details) $ in Millions	Sep. 30, 2016USD ($)
Amortized Cost Basis
Due within one year	$ 1,693
Due after 1 year through 5 years	3,545
Due after 5 years through 10 years	111
Due after 10 years	232
Short-term investments, cost or amortized cost	5,581
Aggregate Fair Value
Due within one year	1,694
Due after 1 year through 5 years	3,562
Due after 5 years through 10 years	112
Due after 10 years	232
Short-term investments, aggregate fair value	$ 5,600

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	$ 5,600
Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5,600	$ 5,016
Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable available-for-sale equity securities	22	18
Deferred compensation plan assets	33	20
Notes payable to EMC | Level 2 | Notes payable | Dell
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument		1,474
Other Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred compensation plan liabilities	33	20
Time deposits | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments		12
U.S. Government and agency obligations | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	820	750
U.S. and foreign corporate debt securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	4,126	3,252
Foreign governments and multi-national agency obligations | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	35	35
Municipal obligations | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	401	706
Asset-backed securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5	20
Mortgage-backed securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	213	241
Total cash equivalents | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,089	1,768
Money-market funds | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,015	1,763
Time deposits | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	35	5
Municipal obligations | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	39
Fair Value, Measurements, Recurring | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5,600	5,016
Fair Value, Measurements, Recurring | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	485	543
Fair Value, Measurements, Recurring | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5,115	4,473
Fair Value, Measurements, Recurring | Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable available-for-sale equity securities	22	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	22	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 | Time deposits | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments		12
Fair Value, Measurements, Recurring | Time deposits | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments		0
Fair Value, Measurements, Recurring | Time deposits | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments		12
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	820	750
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	485	543
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	335	207
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	4,126	3,252
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | Short Term Investments | 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 | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	4,126	3,252
Fair Value, Measurements, Recurring | Foreign governments and multi-national agency obligations | Short Term Investments
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 | Short Term Investments | 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 | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	35	35
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	401	706
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0	0
Fair Value, Measurements, Recurring | Municipal obligations | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	401	706
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5	20
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0	0
Fair Value, Measurements, Recurring | Asset-backed securities | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	5	20
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	213	241
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	0	0
Fair Value, Measurements, Recurring | Mortgage-backed securities | Short Term Investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	213	241
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,089	1,768
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,015	1,763
Fair Value, Measurements, Recurring | Total cash equivalents | Cash and Cash Equivalents | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	74	5
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,015	1,763
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	2,015	1,763
Fair Value, Measurements, Recurring | Money-market funds | Cash and Cash Equivalents | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	35	5
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0	0
Fair Value, Measurements, Recurring | Time deposits | Cash and Cash Equivalents | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	35	$ 5
Fair Value, Measurements, Recurring | Municipal obligations | Cash and Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	39
Fair Value, Measurements, Recurring | Municipal obligations | Cash and Cash Equivalents | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	0
Fair Value, Measurements, Recurring | Municipal obligations | Cash and Cash Equivalents | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	$ 39

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of strategic investments			$ 12	$ 5
Fair Value, Measurements, Nonrecurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment of strategic investments	$ 7	$ 5	12	$ 5
Fair Value, Measurements, Nonrecurring | Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Strategic Investments	$ 124		$ 124		$ 103

Derivatives and Hedging Activ47

Derivatives and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Derivative [Line Items]
Net gain (loss) on forward contracts and underlying foreign currency denominated assets and liabilities			$ (10)
Foreign Exchange Forward
Derivative [Line Items]
Gain (loss) on forward contracts not designated as hedging instruments	$ 12	$ (12)	$ 33
Foreign Exchange Forward | Designated As Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Notional amount of forward contracts		$ 54		$ 213
Foreign Exchange Forward | Not Designated As Hedging Instrument
Derivative [Line Items]
Forward contract maturity		1 month
Notional amount of forward contracts		$ 539		$ 721
Maximum | Foreign Exchange Forward | Designated As Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Forward contract maturity		12 months

Unearned Revenue (Summary of Un

Unearned Revenue (Summary of Unearned Revenue) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Unearned Revenue Arrangement [Line Items]
Unearned Revenue	$ 5,094	$ 5,076
Unearned license revenues
Unearned Revenue Arrangement [Line Items]
Unearned Revenue	425	428
Unearned software maintenance revenues
Unearned Revenue Arrangement [Line Items]
Unearned Revenue	$ 4,201	4,174
Unearned software maintenance revenues | Weighted Average
Unearned Revenue Arrangement [Line Items]
Remaining revenue recognition term	2 years
Unearned professional services revenue
Unearned Revenue Arrangement [Line Items]
Unearned Revenue	$ 468	$ 474

Stockholders' Equity (Stock Rep

Stockholders' Equity (Stock Repurchase Program) (Details) - Class A common stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Apr. 30, 2016	Jan. 27, 2015
Class of Stock [Line Items]
Aggregate purchase price	$ 1,016	$ 200	$ 1,016	$ 1,050
Class A common shares repurchased (shares)	13,999	2,408	13,999	12,524
Weighted-average price per share (USD per share)	$ 72.57	$ 83.06	$ 72.57	$ 83.84
April 2016 Stock Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount under stock repurchase program (up to)					$ 1,200
January 2015 Stock Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount under stock repurchase program (up to)						$ 835

Stockholders' Equity (Summary o

Stockholders' Equity (Summary of Stock Option Activity) (Details) - VMware 2007 Equity and Incentive Plan - Class A common stock shares in Millions, $ in Millions	Sep. 30, 2016USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (shares) | shares	2.2
Intrinsic value of stock options outstanding | $	$ 43

Stockholders' Equity (Summary51

Stockholders' Equity (Summary of Restricted Stock Activity) (Details) - Class A common stock $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Restricted Stock
Number of Units
Outstanding (shares) | shares	18,693
Granted (shares) | shares	11,008
Vested (shares) | shares	(4,660)
Forfeited (shares) | shares	(2,916)
Outstanding (shares) | shares	22,125
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	57.73
Vested, weighted-average grant date fair value (USD per share) | $ / shares	79.72
Forfeited, weighted-average grant date fair value (USD per share) | $ / shares	77.01
Outstanding, weighted-average grant date fair value (USD per share) | $ / shares	$ 67.08
Fair value of restricted stock-based awards, vested | $	$ 272
Aggregate intrinsic value | $	$ 1,623
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 (Share-Bas

Stockholders' Equity (Share-Based Compensation) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Stockholders' Equity Note [Abstract]
Unrecognized compensation cost for stock options and restricted stock	$ 1,080
Weighted-average remaining recognition period	1 year 5 months 12 days

Stockholders' Equity (Accumulat

Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance			$ 7,923
Unrealized gains (losses), net of taxes	$ (4)	$ 0	24	$ (2)
Balance	8,134		8,134
Unrealized Gain (Loss) on Available-for-Sale Securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance			(7)	0
Unrealized gains (losses), net of taxes			19	2
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income, net of taxes			4
Balance	16	2	16	2
Tax effect on unrealized gains (losses)			12	1
Tax effect on reclassifications from accumulated other comprehensive income (loss)			3
Unrealized Gain (Loss) on Forward Contracts
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance			(1)	(1)
Unrealized gains (losses), net of taxes			0	(4)
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income, net of taxes			1
Balance	0	(5)	0	(5)
Tax effect on unrealized gains (losses)			0	0
Tax effect on reclassifications from accumulated other comprehensive income (loss)			0
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance			(8)	(1)
Unrealized gains (losses), net of taxes			19	(2)
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income, net of taxes			5
Balance	$ 16	$ (3)	16	(3)
Tax effect on unrealized gains (losses)			12	$ 1
Tax effect on reclassifications from accumulated other comprehensive income (loss)			$ 3

Related Parties (Schedule of Re

Related Parties (Schedule of Related Party Transactions) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Unearned Revenue	$ 5,094		$ 5,094		$ 5,076
Dell | Reseller revenue
Related Party Transaction [Line Items]
Revenue and Receipts	98	$ 68	261	$ 199
Unearned Revenue	553		553		292
Dell | Internal-use revenue
Related Party Transaction [Line Items]
Revenue and Receipts	5	4	24	13
Unearned Revenue	17		17		11
Dell | Professional services revenue
Related Party Transaction [Line Items]
Revenue and Receipts	28	20	79	68
Unearned Revenue	0		0		3
Dell | Agency fee revenue
Related Party Transaction [Line Items]
Revenue and Receipts	1	1	3	4
Unearned Revenue	0		0		$ 0
Dell | Reimbursement for services to Pivotal
Related Party Transaction [Line Items]
Revenue and Receipts	0	2	1	3
Dell | Purchases and leases of products and purchases of services
Related Party Transaction [Line Items]
Related party costs	24	14	58	45
Dell | Collaborative technology project costs
Related Party Transaction [Line Items]
Related party costs	0	1	0	4
Dell | Dell subsidiary support and administrative costs
Related Party Transaction [Line Items]
Related party costs	$ 30	24	$ 74	79
Dell | Purchases of products through channel
Related Party Transaction [Line Items]
Related party costs		$ 7		$ 33

Related Parties (Tax Sharing Ag

Related Parties (Tax Sharing Agreement) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Payments from VMware to Dell			$ 212	$ 155
Dell | Tax Sharing Agreement
Related Party Transaction [Line Items]
Increase to stockholders' equity from tax sharing agreement				13
Payments from VMware to Dell	$ 54	$ 0	$ 148	$ 92

Related Parties (EMC Equity Awa

Related Parties (EMC Equity Awards Held by VMware Employees) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Dell | EMC Accelerated Award Cost Held by VMware Employees
Related Party Transaction [Line Items]
VMware's portion of stock-based compensation expense associated with accelerated EMC equity awards	$ 7	$ 7

Related Parties (Due To_From Re

Related Parties (Due To/From Related Parties) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 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
Dell
Related Party Transaction [Line Items]
Due (to) related parties	$ (54)	$ (68)
Due from related parties	77	142
Due (to) from related parties, net	23	74
Income tax due (to) from related parties	$ 0	$ (18)

Related Parties (Note Payable t

Related Parties (Note Payable to Dell) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jan. 21, 2014
Related Party Transaction [Line Items]
Interest expense with Dell	$ 7	$ 7	$ 20	$ 20
Dell Notes Due May 2018, May 2020, and December 2022 | Notes payable | Dell
Related Party Transaction [Line Items]
Principal amount					$ 1,500
Interest rate					1.75%
Note Amended and Restated June 2011 | Notes payable | Dell
Related Party Transaction [Line Items]
Principal amount					$ 450
Note, May 2018 | Notes payable | Dell
Related Party Transaction [Line Items]
Principal amount					680
Note, May 2020 | Notes payable | Dell
Related Party Transaction [Line Items]
Principal amount					550
Note, December 2022 | Notes payable | Dell
Related Party Transaction [Line Items]
Principal amount					$ 270

Related Parties (Pivotal) (Deta

Related Parties (Pivotal) (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Apr. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Cash contributed to Pivotal		$ 33	$ 11
Pivotal | Subsidiary of Common Parent
Related Party Transaction [Line Items]
Ownership percentage		17.00%		28.00%
Cash contributed to Pivotal	$ 20

Segment Information (Schedule O

Segment Information (Schedule Of Revenues By Geographic Area) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			1
Revenues From External Customers And Long-Lived Assets [Line Items]
Revenues	$ 1,778	$ 1,672	$ 5,060	$ 4,703
United States
Revenues From External Customers And Long-Lived Assets [Line Items]
Revenues	916	861	2,587	2,364
International
Revenues From External Customers And Long-Lived Assets [Line Items]
Revenues	$ 862	$ 811	$ 2,473	$ 2,339

Segment Information (Schedule61

Segment Information (Schedule Of Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Revenues From External Customers And Long-Lived Assets [Line Items]
Long-lived assets by geographic area	$ 921	$ 979
United States
Revenues From External Customers And Long-Lived Assets [Line Items]
Long-lived assets by geographic area	793	831
International
Revenues From External Customers And Long-Lived Assets [Line Items]
Long-lived assets by geographic area	$ 128	$ 148