Cover Page
Cover Page - shares | 6 Months Ended | |
Aug. 04, 2023 | Sep. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 04, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33622 | |
Entity Registrant Name | VMWARE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3292913 | |
Entity Address, Address Line One | 3401 Hillview Avenue | |
Entity Address, City or Town | Palo Alto, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94304 | |
City Area Code | 650 | |
Local Phone Number | 427-5000 | |
Title of 12(b) Security | Class A common stock | |
Trading Symbol | VMW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 431,789,488 | |
Entity Central Index Key | 0001124610 | |
Current Fiscal Year End Date | --02-02 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Revenue: | |||||
Revenue | [1] | $ 3,408 | $ 3,336 | $ 6,685 | $ 6,424 |
Operating expenses: | |||||
Research and development | [2] | 835 | 803 | 1,682 | 1,577 |
Sales and marketing | [2] | 1,100 | 1,080 | 2,205 | 2,134 |
General and administrative | [2] | 287 | 276 | 660 | 527 |
Realignment | [2] | 0 | 7 | 0 | 7 |
Operating income | 547 | 566 | 855 | 974 | |
Investment income | 74 | 7 | 138 | 8 | |
Interest expense | (79) | (74) | (159) | (145) | |
Other income (expense), net | 19 | (20) | 26 | (30) | |
Income before income tax | 561 | 479 | 860 | 807 | |
Income tax provision | 84 | 132 | 159 | 218 | |
Net income, basic | 477 | 347 | 701 | 589 | |
Net income, diluted | $ 477 | $ 347 | $ 701 | $ 589 | |
Net income per weighted-average share, basic (in USD per share) | $ 1.11 | $ 0.82 | $ 1.63 | $ 1.40 | |
Net income per weighted-average share, diluted (in USD per share) | $ 1.10 | $ 0.82 | $ 1.62 | $ 1.39 | |
Weighted-average shares, basic (in shares) | 430,395 | 422,002 | 429,290 | 421,294 | |
Weighted-average shares, diluted (in shares) | 434,090 | 424,125 | 432,839 | 423,561 | |
License | |||||
Revenue: | |||||
Revenue | [1] | $ 619 | $ 796 | $ 1,136 | $ 1,369 |
Operating expenses: | |||||
Cost of revenue | [2] | 37 | 39 | 76 | 74 |
Subscription and SaaS | |||||
Revenue: | |||||
Revenue | [1] | 1,259 | 943 | 2,476 | 1,842 |
Operating expenses: | |||||
Cost of revenue | [2] | 203 | 196 | 411 | 387 |
Services | |||||
Revenue: | |||||
Revenue | [1] | 1,530 | 1,597 | 3,073 | 3,213 |
Operating expenses: | |||||
Cost of revenue | [2] | $ 399 | $ 369 | $ 796 | $ 744 |
[1]Includes related party revenue as follows (refer to Note C): License $ 291 $ 436 $ 478 $ 690 Subscription and SaaS 389 259 767 514 Services 589 633 1,193 1,274 Cost of license revenue $ — $ — $ 1 $ 1 Cost of subscription and SaaS revenue 6 6 13 11 Cost of services revenue 23 25 45 48 Research and development 146 146 293 278 Sales and marketing 88 93 166 174 General and administrative 47 41 81 81 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Revenue | [1] | $ 3,408 | $ 3,336 | $ 6,685 | $ 6,424 |
Cost of license revenue | |||||
Stock-based compensation | 0 | 0 | 1 | 1 | |
Cost of subscription and SaaS revenue | |||||
Stock-based compensation | 6 | 6 | 13 | 11 | |
Cost of services revenue | |||||
Stock-based compensation | 23 | 25 | 45 | 48 | |
Research and development | |||||
Stock-based compensation | 146 | 146 | 293 | 278 | |
Sales and marketing | |||||
Stock-based compensation | 88 | 93 | 166 | 174 | |
General and administrative | |||||
Stock-based compensation | 47 | 41 | 81 | 81 | |
License | |||||
Revenue | [1] | 619 | 796 | 1,136 | 1,369 |
License | Dell | |||||
Revenue | 291 | 436 | 478 | 690 | |
Subscription and SaaS | |||||
Revenue | [1] | 1,259 | 943 | 2,476 | 1,842 |
Subscription and SaaS | Dell | |||||
Revenue | 389 | 259 | 767 | 514 | |
Services | |||||
Revenue | [1] | 1,530 | 1,597 | 3,073 | 3,213 |
Services | Dell | |||||
Revenue | $ 589 | $ 633 | $ 1,193 | $ 1,274 | |
[1]Includes related party revenue as follows (refer to Note C): License $ 291 $ 436 $ 478 $ 690 Subscription and SaaS 389 259 767 514 Services 589 633 1,193 1,274 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 477 | $ 347 | $ 701 | $ 589 |
Changes in fair value of effective foreign currency forward contracts: | ||||
Unrealized gains (losses), net of tax provision (benefit) of $—, $(1), $— and $(1) | (2) | (6) | (2) | (9) |
Reclassification of (gains) losses realized during the period, net of tax (provision) benefit of $— for all periods | 0 | 2 | 0 | 1 |
Total other comprehensive income (loss) | (2) | (4) | (2) | (8) |
Comprehensive income, net of taxes | $ 475 | $ 343 | $ 699 | $ 581 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision (benefit) on unrealized gains (losses) on derivatives | $ 0 | $ (1) | $ 0 | $ (1) |
Tax (provision) benefit on reclassification of gains (losses) realized on derivatives | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 6,801 | $ 5,100 |
Accounts receivable, net of allowance of $10 and $9 | 2,432 | 2,510 |
Due from related parties | 1,267 | 2,078 |
Other current assets | 519 | 543 |
Total current assets | 11,019 | 10,231 |
Property and equipment, net | 1,644 | 1,623 |
Deferred tax assets | 6,402 | 6,157 |
Intangible assets, net | 368 | 478 |
Goodwill | 9,598 | 9,598 |
Due from related parties | 267 | 208 |
Other assets | 2,901 | 2,942 |
Total assets | 32,199 | 31,237 |
Current liabilities: | ||
Accounts payable | 217 | 267 |
Accrued expenses and other | 2,358 | 2,568 |
Customer deposits | 2,017 | 1,087 |
Current portion of long-term debt | 1,000 | 1,000 |
Unearned revenue | 6,739 | 7,079 |
Due to related parties | 404 | 390 |
Total current liabilities | 12,735 | 12,391 |
Long-term debt | 9,449 | 9,440 |
Unearned revenue | 5,351 | 5,664 |
Income tax payable | 381 | 287 |
Operating lease liabilities | 785 | 845 |
Due to related parties | 504 | 648 |
Other liabilities | 447 | 428 |
Total liabilities | 29,652 | 29,703 |
Contingencies (refer to Note D) | ||
Stockholders’ equity: | ||
Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 431,379 and 426,741 shares | 4 | 4 |
Additional paid-in capital | 1,409 | 1,095 |
Accumulated other comprehensive loss | (6) | (4) |
Retained earnings | 1,140 | 439 |
Total stockholders’ equity | 2,547 | 1,534 |
Total liabilities and stockholders’ equity | $ 32,199 | $ 31,237 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 10 | $ 9 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (in shares) | 431,379,000 | 426,741,000 |
Common stock, shares outstanding (in shares) | 431,379,000 | 426,741,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Jul. 29, 2022 | |
Operating activities: | ||
Net income | $ 701 | $ 589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 666 | 590 |
Stock-based compensation | 599 | 593 |
Deferred income taxes, net | (237) | (80) |
(Gain) loss on equity securities and disposition of assets, net | 4 | (12) |
Other | 6 | 3 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 72 | 222 |
Other current assets and other assets | (291) | (418) |
Due from related parties | 752 | 180 |
Accounts payable | (49) | (31) |
Accrued expenses, customer deposits and other liabilities | 717 | (319) |
Income taxes payable | 37 | 114 |
Unearned revenue | (653) | 9 |
Due to related parties | (130) | (38) |
Net cash provided by operating activities | 2,194 | 1,402 |
Investing activities: | ||
Additions to property and equipment | (199) | (219) |
Sales of investments in equity securities | 0 | 20 |
Purchases of strategic investments | (3) | (8) |
Proceeds from disposition of assets | 10 | 90 |
Business combinations, net of cash acquired, and purchases of intangible assets | (8) | (4) |
Net cash used in investing activities | (200) | (121) |
Financing activities: | ||
Proceeds from issuance of common stock | 5 | 124 |
Repayment of term loan | 0 | (1,500) |
Repurchase of common stock | 0 | (89) |
Shares repurchased for tax withholdings on vesting of restricted stock | (300) | (205) |
Principal payments on finance lease obligations | (3) | (2) |
Net cash used in financing activities | (298) | (1,672) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,696 | (391) |
Cash, cash equivalents and restricted cash at beginning of the period | 5,127 | 3,663 |
Cash, cash equivalents and restricted cash at end of the period | 6,823 | 3,272 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 154 | 140 |
Cash paid for taxes, net | 416 | 184 |
Non-cash items: | ||
Changes in capital additions, accrued but not paid | $ (12) | $ 9 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Millions | Total | Class A Common Stock | Common Stock Class A Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Jan. 28, 2022 | 419,000 | |||||
Beginning balance at Jan. 28, 2022 | $ (876) | $ 4 | $ 0 | $ (875) | $ (5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from issuance of common stock (in shares) | 1,000 | |||||
Proceeds from issuance of common stock | 124 | 124 | ||||
Repurchase and retirement of common stock (in shares) | (803) | (1,000) | ||||
Repurchase and retirement of common stock | (89) | $ (89) | (89) | 0 | ||
Issuance of restricted stock (in shares) | 5,000 | |||||
Shares withheld for tax withholdings on vesting of restricted stock (in shares) | (1,000) | |||||
Shares withheld for tax withholdings on vesting of restricted stock | (208) | (208) | ||||
Stock-based compensation | 608 | 608 | ||||
Total other comprehensive loss | (8) | (8) | ||||
Net income | 589 | 589 | ||||
Ending balance (in shares) at Jul. 29, 2022 | 423,000 | |||||
Ending balance at Jul. 29, 2022 | 140 | $ 4 | 435 | (286) | (13) | |
Beginning balance (in shares) at Apr. 29, 2022 | 421,000 | |||||
Beginning balance at Apr. 29, 2022 | (411) | $ 4 | 227 | (633) | (9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from issuance of common stock | 5 | 5 | ||||
Repurchase and retirement of common stock (in shares) | 0 | |||||
Repurchase and retirement of common stock | $ 0 | |||||
Issuance of restricted stock (in shares) | 3,000 | |||||
Shares withheld for tax withholdings on vesting of restricted stock (in shares) | (1,000) | |||||
Shares withheld for tax withholdings on vesting of restricted stock | (115) | (115) | ||||
Stock-based compensation | 318 | 318 | ||||
Total other comprehensive loss | (4) | (4) | ||||
Net income | 347 | 347 | ||||
Ending balance (in shares) at Jul. 29, 2022 | 423,000 | |||||
Ending balance at Jul. 29, 2022 | $ 140 | $ 4 | 435 | (286) | (13) | |
Beginning balance (in shares) at Feb. 03, 2023 | 426,741 | 427,000 | ||||
Beginning balance at Feb. 03, 2023 | $ 1,534 | $ 4 | 1,095 | 439 | (4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from issuance of common stock | 5 | 5 | ||||
Issuance of restricted stock (in shares) | 7,000 | |||||
Shares withheld for tax withholdings on vesting of restricted stock (in shares) | (3,000) | |||||
Shares withheld for tax withholdings on vesting of restricted stock | (305) | (305) | ||||
Stock-based compensation | 614 | 614 | ||||
Total other comprehensive loss | (2) | (2) | ||||
Net income | $ 701 | 701 | ||||
Ending balance (in shares) at Aug. 04, 2023 | 431,379 | 431,000 | ||||
Ending balance at Aug. 04, 2023 | $ 2,547 | $ 4 | 1,409 | 1,140 | (6) | |
Beginning balance (in shares) at May. 05, 2023 | 430,000 | |||||
Beginning balance at May. 05, 2023 | 1,867 | $ 4 | 1,204 | 663 | (4) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from issuance of common stock | 4 | 4 | ||||
Issuance of restricted stock (in shares) | 2,000 | |||||
Shares withheld for tax withholdings on vesting of restricted stock (in shares) | (1,000) | |||||
Shares withheld for tax withholdings on vesting of restricted stock | (116) | (116) | ||||
Stock-based compensation | 317 | 317 | ||||
Total other comprehensive loss | (2) | (2) | ||||
Net income | $ 477 | 477 | ||||
Ending balance (in shares) at Aug. 04, 2023 | 431,379 | 431,000 | ||||
Ending balance at Aug. 04, 2023 | $ 2,547 | $ 4 | $ 1,409 | $ 1,140 | $ (6) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Aug. 04, 2023 | |
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”) originally pioneered the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware, and then evolved to become the private cloud and mobility management leader. Building upon that leadership, VMware is focused on becoming the multi-cloud leader. Information technology (“IT”) driven innovation continues to disrupt markets and industries. Technologies emerge faster than organizations can absorb, creating increasingly complex environments. Organizations’ IT departments and corporate divisions are working at an accelerated pace to harness new technologies, platforms and cloud models, ultimately guiding businesses and their product teams through a digital transformation. To take on these challenges, the Company is helping customers drive their multi-cloud strategy by providing the multi-cloud platform for all applications, enabling digital innovation and enterprise control. Basis of Presentation The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The fiscal year for VMware is the 52 or 53 weeks ending on the Friday nearest to January 31 of each year. Fiscal 2024 is a 52-week fiscal year and fiscal 2023 was a 53-week fiscal year, in which the fourth quarter had 14 weeks. 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 fiscal year 2024. 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 Annual Report on Form 10-K filed on March 28, 2023. On November 1, 2021, VMware’s spin-off from Dell Technologies Inc. (“Dell”) was completed (the “Spin-Off”). As a result of the Spin-Off, VMware became a standalone company and entities affiliated with Michael Dell (the “MSD Stockholders”), who serves as VMware’s Chairman of the Board and chairman and chief executive officer of Dell, and entities affiliated with Silver Lake Partners (the “SLP Stockholders”), of which Egon Durban, a VMware director, is a managing partner, became owners of direct interests in VMware representing 39.2% and 9.7%, respectively, of VMware’s outstanding stock, based on the shares outstanding as of August 4, 2023. Due to the MSD Stockholders’ and SLP Stockholders’ direct ownership in both VMware and Dell, as well as Mr. Dell’s executive position with Dell, transactions with Dell continue to be considered related party transactions following the Spin-Off. Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s related party transactions with Dell and its consolidated subsidiaries may not be considered arm’s length with an unrelated third party. Therefore, the condensed consolidated 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 products and services the Company receives from and provides to Dell. Broadcom Merger Agreement On May 26, 2022, VMware entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Broadcom Inc. (“Broadcom”). Under the terms of the Merger Agreement, each share of Class A common stock, par value $0.01 per share, of the Company (“Common Stock”) issued and outstanding immediately prior to the effective time of the transaction will be indirectly converted into the right to receive, at the election of the holder of such share of Common Stock, and subject to proration in accordance with the Merger Agreement as described below: (i) $142.50 per share in cash, without interest (the “Cash Consideration”), or (ii) 0.25200 (the “Exchange Ratio”) shares of common stock, par value $0.001 per share, of Broadcom (“Broadcom Common Stock,” and such consideration, the “Stock Consideration”). The stockholder election will be subject to a proration mechanism, such that the total number of shares of Common Stock entitled to receive the Cash Consideration and the total number of shares of Common Stock entitled to receive the Stock Consideration will, in each case, be equal to 50% of the aggregate number of shares of Common Stock issued and outstanding immediately prior to the consummation of the transaction. Holders of Common Stock that do not make an election will be treated as having elected to receive the Cash Consideration or the Stock Consideration in accordance with the proration methodology in the Merger Agreement. The Merger Agreement contains customary representations, warranties and covenants. The Merger Agreement also contains termination rights for either or each of Broadcom and the Company. On August 21, 2023, in accordance with the Merger Agreement, the Company and Broadcom each delivered to the other a mutual notice to extend the Outside Date (as defined in the Merger Agreement) to November 26, 2023. The transaction, which is expected to be consummated on October 30, 2023, was approved by VMware shareholders at a special meeting held on November 4, 2022 but remains subject to the receipt of regulatory approvals and other customary closing conditions. If the transaction is consummated, the Common Stock will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934, as amended. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of VMware and subsidiaries in which VMware has a controlling financial interest. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated subsidiaries are 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, expected period of benefit for deferred commissions, 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. To the extent the Company’s actual results differ materially from those estimates and assumptions, VMware’s future financial statements could be affected. Income Taxes In July 2023, the Internal Revenue Service released Notice 2023-55, which provides temporary relief for taxpayers in determining whether a foreign tax is eligible for a foreign tax credit under Sections 901 and 903 of the Internal Revenue Code. As a result of the temporary relief, the Company recognized a discrete tax benefit of approximately $60 million in income tax provision on the condensed consolidated statements of income during each of the three and six months ended August 4, 2023. |
Revenue, Unearned Revenue and R
Revenue, Unearned Revenue and Remaining Performance Obligations | 6 Months Ended |
Aug. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Unearned Revenue and Remaining Performance Obligations | Revenue, Unearned Revenue and Remaining Performance Obligations Revenue Contract Assets A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract assets include fixed-fee professional services where transfer of services has occurred in advance of the Company’s right to invoice. Contract assets are classified as accounts receivables upon invoicing. Contract assets are included in other current assets on the condensed consolidated balance sheets. Contract assets were $33 million as of August 4, 2023 and February 3, 2023. Contract asset balances will fluctuate based upon the timing of the transfer of services, billings and customers’ acceptance of contractual milestones. Contract Liabilities Contract liabilities consist of unearned revenue, which is generally recorded when VMware has the right to invoice or payments have been received for undelivered products or services. Customer Deposits Customer deposits include prepayments from customers related to amounts received for contracts that include certain cancellation rights, such as termination for convenience. If customers do not exercise their cancellation rights, amounts in customer deposits will be recognized as revenue over time, in accordance with the performance obligations of the contracts and transfer of control of these obligations. Unredeemed, prepaid credits eligible for consumption of VMware’s hosted services (“cloud credits”) are also included in customer deposits. Upon customers’ redemption of cloud credits, the net value of the consumed credits is classified as unearned revenue and recognized as revenue over time, in accordance with the Company’s transfer of control of the hosted services. As of August 4, 2023, customer deposits of $2.0 billion were included in current liabilities on the condensed consolidated balance sheets and primarily consisted of customer prepayments received for contracts that include certain cancellation rights, such as termination for convenience, of $1.6 billion and cloud credits of $380 million. In addition, customer deposits of $179 million were included in other liabilities on the condensed consolidated balance sheets and primarily consisted of cloud credits. As of February 3, 2023, customer deposits of $1.1 billion were included in current liabilities on the condensed consolidated balance sheets and primarily consisted of customer prepayments received for contracts that include certain cancellation rights, such as termination for convenience, of $681 million and cloud credits of $405 million. In addition, customer deposits of $182 million were included in other liabilities on the condensed consolidated balance sheets and primarily consisted of cloud credits. Deferred Commissions Deferred commissions are classified as current or non-current based on the duration of the expected period of benefit. Deferred commissions, including the employer portion of payroll taxes, included in other current assets as of August 4, 2023 and February 3, 2023 were not material. Deferred commissions included in other assets were $1.6 billion and $1.5 billion as of August 4, 2023 and February 3, 2023, respectively. Amortization expense for deferred commissions was included in sales and marketing on the condensed consolidated statements of income and was $183 million and $362 million during the three and six months ended August 4, 2023, respectively, and $158 million and $301 million during the three and six months ended July 29, 2022, respectively. Unearned Revenue Unearned revenue as of the periods presented consisted of the following (table in millions): August 4, February 3, 2023 2023 Unearned license revenue $ 11 $ 21 Unearned subscription and software-as-a-service (“SaaS”) revenue 4,488 4,401 Unearned software maintenance revenue 6,095 6,805 Unearned professional services revenue 1,496 1,516 Total unearned revenue $ 12,090 $ 12,743 Unearned subscription and SaaS revenue is generally recognized over time as customers consume the services or ratably over the term of the subscription, commencing upon provisioning of the service. Unearned software maintenance revenue is attributable to VMware’s maintenance contracts and is generally recognized ratably over the contract duration. The weighted-average remaining contractual term as of August 4, 2023 was approximately two years. Unearned professional services revenue results primarily from prepaid professional services and is generally recognized as the services are performed. Total billings and revenue recognized during the three months ended August 4, 2023 were $2.2 billion and $2.3 billion, respectively, and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premises licenses. Total billings and revenue recognized during the six months ended August 4, 2023 were $3.9 billion and $4.6 billion, respectively, and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premises licenses. Revenue recognized during the three and six months ended July 29, 2022 was $2.2 billion and $4.3 billion, respectively, and did not include amounts for performance obligations that were fully satisfied upon delivery, such as on-premises licenses. Remaining Performance Obligations Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted non-cancellable customer contracts at the end of any given period. |
Related Parties
Related Parties | 6 Months Ended |
Aug. 04, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties Transactions with Dell continue to be considered related party transactions following the Spin-Off due to the MSD Stockholders’ and SLP Stockholders’ direct ownership in both VMware and Dell, as well as Mr. Dell’s executive position with Dell. On November 1, 2021, in connection with the Spin-Off, VMware and Dell entered into the Commercial Framework Agreement to provide a framework under which the Company and Dell will continue their strategic commercial relationship, particularly with respect to projects mutually agreed by the parties as having the potential to accelerate the growth of an industry, product, service or platform that may provide the parties with a strategic market opportunity. The Commercial Framework Agreement has an initial term of five years, with automatic one-year renewals occurring annually thereafter, subject to certain terms and conditions. The information provided below includes a summary of transactions with Dell. Transactions with Dell VMware and Dell engaged in the following ongoing related party transactions, which resulted in revenue and receipts, and unearned revenue for VMware: • Pursuant to original equipment manufacturer (“OEM”) and reseller arrangements, Dell integrates or bundles VMware’s products and services with Dell’s products and sells them to end users. Dell also acts as a distributor, purchasing VMware’s standalone products and services for resale to end-user customers through VMware-authorized resellers. Revenue under these arrangements is presented net of related marketing development funds and rebates paid to Dell. In addition, VMware provides professional services to end users based upon contractual agreements with Dell. • Dell purchases products and services from VMware for its internal use. • From time to time, VMware and Dell enter into agreements to collaborate on technology projects, in connection with which Dell pays VMware for services or reimburses VMware for costs incurred by VMware. During the three and six months ended August 4, 2023, revenue from Dell accounted for 37% and 36% of VMware’s consolidated revenue, respectively. During each of the three and six months ended August 4, 2023, revenue recognized on transactions where Dell acted as an OEM accounted for 13% of total revenue from Dell, and 5% of VMware’s consolidated revenue. During the three and six months ended July 29, 2022, revenue from Dell accounted for 40% and 39% of VMware’s consolidated revenue, respectively. During each of the three and six months ended July 29, 2022, revenue recognized on transactions where Dell acted as an OEM accounted for 13% of total revenue from Dell, and 5% of VMware’s consolidated revenue. Dell purchases VMware products and services directly from VMware, as well as through VMware’s channel partners. Information about VMware’s revenue and unearned revenue from such arrangements for the periods presented consisted of the following (table in millions): Revenue Unearned Revenue Three Months Ended Six Months Ended As of August 4, July 29, August 4, July 29, August 4, February 3, 2023 2022 2023 2022 2023 2023 Reseller revenue $ 1,225 $ 1,313 $ 2,380 $ 2,451 $ 5,632 $ 6,145 Internal-use revenue 44 15 58 27 44 19 Customer deposits resulting from transactions with Dell were $1.1 billion and $766 million as of August 4, 2023 and February 3, 2023, respectively. VMware and Dell engaged in the following ongoing related party 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, in connection with which VMware pays Dell for services provided to VMware by Dell. • Through the end of fiscal 2023, in certain geographic regions where VMware did not have an established legal entity, VMware contracted with Dell subsidiaries for support services and support from Dell personnel who were managed by VMware. The costs incurred by Dell on VMware’s behalf related to these employees were 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 were included as expenses on VMw are’s condensed consolidated statements of income and primarily include salaries, benefits, travel and occupancy expenses. Payments for Dell subsidiary support and administrative costs were not material during the three and six months ended July 29, 2022. Information about VMware’s payments for such arrangements during the periods presented consisted of the following (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Purchases and leases of products and purchases of services $ 51 $ 53 $ 89 $ 95 VMware also purchases Dell products through Dell’s channel partners, however such amounts were not material during the periods presented. From time to time, VMware and Dell also enter into joint marketing, sales, branding and product development arrangements, for which both parties may incur costs. Dell Financial Services (“DFS”) DFS provides financing to certain of VMware’s end users at the end users’ discretion. Upon acceptance of the financing arrangement by both VMware’s end users and DFS, amounts classified as trade accounts receivable are reclassified to the current portion of due from related parties on th e condensed consolidated balance sheets . Revenue recognized on transactions financed through DFS was recorded net of financing fees. Financing fees on arrangements accepted by both parties were $21 million and $17 million during the six months ended August 4, 2023 and July 29, 2022, respectively, and were not material during each of the three months ended August 4, 2023 and July 29, 2022. Tax Agreement with Dell Pursuant to the Tax Matters Agreement, effective April 14, 2021 (the “Tax Matters Agreement”), VMware and Dell have agreed to indemnify one another for certain tax liabilities or tax benefits relating to periods prior to the Spin-Off. Certain adjustments to these amounts that will be recognized in future periods will be recorded with an offset to other income (expense), net on the condensed consolidated statements of income. The actual amount that VMware may receive from or pay to Dell could vary depending on the outcome of tax matters arising from Dell’s future tax audits, which may not be resolved for several years. As of the periods presented, amounts due to and due from Dell pursuant to the Tax Matters Agreement consisted of the following (table in millions): August 4, February 3, 2023 2023 Due from related parties: Current $ — $ 1 Non-current 267 208 Due to related parties: Current $ 341 $ 306 Non-current 504 648 Amounts due to Dell pursuant to the Tax Matters Agreement primarily related to VMware’s estimated tax obligation resulting from the mandatory, one-time transition tax on accumulated earnings of foreign subsidiaries (“Transition Tax”) of $334 million and $445 million as of August 4, 2023 and February 3, 2023, respectively. The U.S. Tax Cuts and Jobs Act enacted on December 22, 2017 (the “2017 Tax Act”) included a deferral election for an eight-year installment payment method on the Transition Tax. The Company expects to pay the remainder of its Transition Tax as of August 4, 2023 over a period of two years. In addition, amounts due to Dell included uncertain tax positions of $292 million and $285 million as of August 4, 2023 and February 3, 2023, respectively. During each of the three and six months ended August 4, 2023, payments received from Dell pursuant to the Tax Matters Agreement were not material, and payments made to Dell were $113 million. During each of the three and six months ended July 29, 2022, payments received from Dell pursuant to the Tax Matters Agreement were not material, and payments made to Dell were $59 million. Payments made to Dell for the periods presented were primarily related to the Transition Tax. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation On June 2, 2020, WSOU Investments LLC (doing business as Brazos Licensing & Development) (“WSOU”) filed four patent infringement lawsuits against VMware (also naming Dell and EMC) in the United States District Court for the Western District of Texas (the “Texas Court”), asserting one patent in each lawsuit. The Texas Court consolidated the four lawsuits for all purposes. During the course of the lawsuit, WSOU dropped one of the asserted patents and on February 21, 2023, trial began for the remaining three patents, with WSOU seeking certain damages. On the first day of trial, the Texas Court granted summary judgment of non-infringement as to two patents, leaving one patent to continue to trial. At the conclusion of the plaintiff’s case, the Texas Court granted VMware’s motion for a directed verdict on the remaining patent. The parties are in the post-trial motion stage and the Texas Court’s rulings are subject to appeal. In the event of an appeal, the Company intends to vigorously defend against this matter. On March 31, 2020, a securities class action lawsuit was filed against VMware and certain present and former officers of the Company in the United States District Court for the Northern District of California (the “California Court”). On September 18, 2020, the plaintiff filed a consolidated amended complaint alleging that the Company’s statements about backlog and the related internal controls during the period from August 2018 through February 2020 were materially misleading. The defendants filed a motion to dismiss, which was granted with leave to amend on September 10, 2021. On October 8, 2021, the plaintiffs filed their Second Amended Consolidated Complaint based on the same alleged disclosure deficiencies. The defendants’ motion to dismiss the Second Amended Consolidated Complaint was filed on November 5, 2021. On April 2, 2023, the California court denied the defendants’ motion to dismiss, finding that the plaintiffs had adequately stated claims under Sections 10 and 20A of the Exchange Act. The parties are currently in the discovery stage of the proceedings. The Company is unable at this time to assess whether or to what extent it may be found liable and, if found liable, what the damages may be, and believes a loss is not probable and reasonably estimable. The Company intends to vigorously defend against this matter. On March 5, 2020, two purported Pivotal stockholders filed a petition for appraisal in the Delaware Court of Chancery (the “Chancery Court”) seeking a judicial determination of the fair value of an aggregate total of 10,000,100 Pivotal shares (the “Appraisal Action”). On June 23, 2020, the Company made a payment of $91 million to the petitioners in the Appraisal Action, which reduces the Company’s exposure to accumulating interest. A trial in the Appraisal Action took place in July 2022. Thereafter, the parties completed a post-trial briefing, and a post-trial hearing was held on December 13, 2022. On August 14, 2023, the Chancery Court issued a ruling finding that the fair value for the acquisition was $14.83 per share. The ruling is subject to appeal. As a result, recognition of the estimated gain contingency, which primarily represents the difference between the purchase price of $15.00 per share and the fair value per share, will occur in the period in which all underlying events or contingencies are resolved and is not expected to be material to the condensed consolidated financial statements. In the event of an appeal, the Company intends to vigorously defend against this matter. On April 25, 2019, Cirba Inc. and Cirba IP, Inc. (collectively, “Cirba”) sued VMware in the United States District Court for the District of Delaware (the “Delaware Court”) asserting two patent infringement claims and three trademark claims. A first jury trial was held on these claims in January 2020, following which, in December 2020, the Delaware Court ordered a new trial. During the proceedings, VMware counter-asserted eight patent infringement claims against Cirba, and Cirba asserted an additional two patent infringement claims against VMware. VMware filed invalidity challenges in the United States Patent and Trademark Office against all four patents asserted by Cirba. In those proceedings, one patent (“367 patent”) survived an ex parte reexamination and one patent (“687 patent”) remains under review in an ex parte reexamination. In addition, the Patent Trial and Appeal Board found one patent invalid (“492 patent”) pursuant to an inter partes review and one patent invalid (“459 patent”) pursuant to a post-grant review. Cirba severed and stayed the 492 patent and 459 patent claims from the Delaware Court proceedings and appealed both decisions to the Federal Circuit. Of the eight patents asserted by VMware, one was held invalid pursuant to a Section 101 challenge and four were voluntarily dismissed. The remaining three patents were severed and stayed. Prior to the second jury trial, the Delaware Court granted VMware’s summary judgment motion on Cirba’s three trademark claims. Beginning on April 24, 2023, the second jury trial was held on Cirba’s 367 patent and 687 patent claims. On May 1, 2023, the jury returned a verdict finding that VMware infringed both patents. Specifically, the jury’s verdict found that VMware willfully infringed one patent and that one of Cirba’s patents that VMware asserted invalidity against was valid. The jury awarded damages to Cirba of $85 million. The parties are now in the post-trial motion stage. During the first quarter of fiscal 2024, VMware accrued a total of $85 million, which reflects the estimated losses that are considered both probable and reasonably estimable at this time. The amount accrued for this matter was included in accrued expenses and other on the condensed consolidated balance sheets as of August 4, 2023, and the charge was included in general and administrative expense on the condensed consolidated statements of income during the six months ended August 4, 2023. The Company is unable at this time to assess whether, or to what extent, the jury verdict will stand following post-trial motions and appeals. The Company intends to continue to vigorously defend against this matter. 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. 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 August 4, 2023, amounts accrued relating to these other matters arising as part of the ordinary course of business were considered not material. VMware does not believe that any liability from any reasonably possible disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on its condensed consolidated financial statements. |
Definite-Lived Intangible Asset
Definite-Lived Intangible Assets, Net | 6 Months Ended |
Aug. 04, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Definite-Lived Intangible Assets, Net | Definite-Lived Intangible Assets, Net As of the periods presented, definite-lived intangible assets consisted of the following (amounts in tables in millions): August 4, 2023 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 5.4 $ 787 $ (658) $ 129 Customer relationships and customer lists 12.0 626 (402) 224 Trademarks and tradenames 6.8 69 (54) 15 Total definite-lived intangible assets $ 1,482 $ (1,114) $ 368 February 3, 2023 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 5.3 $ 819 $ (623) $ 196 Customer relationships and customer lists 11.9 632 (371) 261 Trademarks and tradenames 6.8 69 (48) 21 Total definite-lived intangible assets $ 1,520 $ (1,042) $ 478 Amortization expense on definite-lived intangible assets was $58 million and $118 million during the three and six months ended August 4, 2023, respectively, and $63 million and $129 million during the three and six months ended July 29, 2022, respectively. Based on intangible assets recorded as of August 4, 2023 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (table in millions): Remainder of 2024 $ 88 2025 114 2026 73 2027 43 2028 16 Thereafter 34 Total $ 368 |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Aug. 04, 2023 | |
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 shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period, using the treasury stock method. Potentially dilutive securities primarily include unvested restricted stock, which includes restricted stock unit (“RSU”) and performance stock unit (“PSU”) awards, and stock options, including purchase options under VMware’s employee stock purchase plan. Securities are excluded from the computation of diluted net income per share if their effect would be anti-dilutive. The following table sets forth the computations of basic and diluted net income per share during the periods presented (table in millions, except per share amounts and shares in thousands): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Net income $ 477 $ 347 $ 701 $ 589 Weighted-average shares, basic 430,395 422,002 429,290 421,294 Effect of other dilutive securities 3,695 2,123 3,549 2,267 Weighted-average shares, diluted 434,090 424,125 432,839 423,561 Net income per weighted-average share, basic $ 1.11 $ 0.82 $ 1.63 $ 1.40 Net income per weighted-average share, diluted $ 1.10 $ 0.82 $ 1.62 $ 1.39 The following table sets forth the weighted-average common share equivalents of Common Stock that were excluded from the diluted net income per share calculations during the periods presented because their effect would have been anti-dilutive (shares in thousands): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Anti-dilutive securities: Employee stock options — 159 — 126 RSUs 87 876 1,297 679 Total 87 1,035 1,297 805 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Aug. 04, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and Cash Equivalents Cash and cash equivalents totaled $6.8 billion and $5.1 billion as of August 4, 2023 and February 3, 2023, respectively. Cash equivalents were $6.0 billion as of August 4, 2023 and consisted of money-market funds of $6.0 billion and time deposits of $42 million. Cash equivalents were $4.3 billion as of February 3, 2023 and consisted of money-market funds of $4.2 billion and time deposits of $19 million. Restricted Cash The following table provides a reconciliation of the Company’s cash and cash equivalents, and current and non-current portion of restricted cash reported on the condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash as of the periods presented (table in millions): August 4, February 3, 2023 2023 Cash and cash equivalents $ 6,801 $ 5,100 Restricted cash within other current assets 21 24 Restricted cash within other assets 1 3 Total cash, cash equivalents and restricted cash $ 6,823 $ 5,127 |
Debt
Debt | 6 Months Ended |
Aug. 04, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Unsecured Senior Notes On August 2, 2021, VMware issued five series of unsecured senior notes pursuant to a public debt offering (the “2021 Senior Notes”). The proceeds from the 2021 Senior Notes were $5.9 billion, net of debt discount of $11 million and debt issuance costs of $47 million. VMware also issued unsecured senior notes on April 7, 2020 (the “2020 Senior Notes”) and on August 21, 2017 (the “2017 Senior Notes,” collectively with the 2020 Senior Notes and 2021 Senior Notes, the “Senior Notes”). The carrying value of the Senior Notes as of the periods presented was as follows (amounts in millions): August 4, February 3, Effective Interest Rate 2023 2023 2017 Senior Notes: 3.90% Senior Note Due August 21, 2027 $ 1,250 $ 1,250 4.05% 2020 Senior Notes: 4.50% Senior Note Due May 15, 2025 750 750 4.70% 4.65% Senior Note Due May 15, 2027 500 500 4.80% 4.70% Senior Note Due May 15, 2030 750 750 4.86% 2021 Senior Notes: 0.60% Senior Note Due August 15, 2023 1,000 1,000 0.95% 1.00% Senior Note Due August 15, 2024 1,250 1,250 1.23% 1.40% Senior Note Due August 15, 2026 1,500 1,500 1.61% 1.80% Senior Note Due August 15, 2028 750 750 2.01% 2.20% Senior Note Due August 15, 2031 1,500 1,500 2.32% Total principal amount 9,250 9,250 Less: unamortized discount (11) (12) Less: unamortized debt issuance costs (39) (46) Net carrying amount $ 9,200 $ 9,192 Current portion of long-term debt $ 1,000 $ 1,000 Long-term debt 8,200 8,192 Beginning on February 15, 2022, interest on the 2021 Senior Notes became payable semiannually in arrears, on February 15 and August 15 of each year. Beginning on November 15, 2020, interest on the 2020 Senior Notes became payable semiannually in arrears, on May 15 and November 15 of each year. The interest rate on the 2020 Senior Notes is subject to adjustment based on certain rating events. Beginning on February 21, 2018, interest on the 2017 Senior Notes became payable semiannually in arrears, on February 21 and August 21 of each year. Interest expense was $60 million and $123 million during the three and six months ended August 4, 2023, respectively, and $61 million and $123 million during the three and six months ended July 29, 2022, respectively. Interest expense, which included amortization of discount and issuance costs, was recognized on the condensed consolidated statements of income. The discount and issuance costs are amortized over the term of the Senior Notes on a straight-line basis, which approximates the effective interest method. The Senior Notes are redeemable in whole at any time or in part from time to time at VMware’s option and may be subject to a make-whole premium. In addition, upon the occurrence of certain change-of-control triggering events and certain downgrades of the ratings on the Senior Notes, VMware may be required to repurchase the notes at a repurchase price equal to 101% of the aggregate principal plus any accrued and unpaid interest on the date of repurchase. The Senior Notes rank equally in right of payment with VMware’s other unsecured and unsubordinated indebtedness and contain restrictive covenants that, in certain circumstances, limit VMware’s ability to create certain liens, to enter into certain sale and leaseback transactions and to consolidate, merge, sell or otherwise dispose of all or substantially all of VMware’s assets. The future principal payments for the next five fiscal years and thereafter for the Senior Notes as of August 4, 2023 were as follows (amounts in millions): Remainder of 2024 $ 1,000 2025 1,250 2026 750 2027 1,500 2028 1,750 Thereafter 3,000 Total $ 9,250 On August 15, 2023, subsequent to the second quarter of fiscal 2024, VMware repaid the $1.0 billion unsecured senior note due August 15, 2023. Senior Unsecured Term Loan Facility On September 2, 2021, VMware received commitments from financial institutions for a three-year senior unsecured term loan facility and a five-year senior unsecured term loan facility that provided the Company with a one-time aggregate borrowing capacity of up to $4.0 billion (the “2021 Term Loan”). The Company drew down an aggregate of $4.0 billion on November 1, 2021 and has since repaid $2.8 billion, of which $1.5 billion was repaid during the six months ended July 29, 2022. As of August 4, 2023 and February 3, 2023, the outstanding balance on the 2021 Term Loan of $1.2 billion, net of unamortized debt issuance costs, respectively, was included in long-term debt on the condensed consolidated balance sheets. As of August 4, 2023, the weighted-average interest rate on the outstanding 2021 Term Loan was 6.23%. During the three months ended August 4, 2023, VMware entered into an amendment to the outstanding five-year senior unsecured term loan facility to change the referenced interest rate index from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). The Company has elected the optional expedient pursuant to Accounting Standards Codification 848, Reference Rate Reform, (“ASC 848”) to account for the amendment prospectively. The amendment did not have a significant impact on the Company’s condensed consolidated financial statements during the three months ended August 4, 2023. The 2021 Term Loan contains certain representations, warranties and covenants. Interest expense for the 2021 Term Loan, including amortization of issuance costs, was $19 million and $37 million during the three and six months ended August 4, 2023, respectively and was not significant and $22 million during the three and six months ended July 29, 2022, respectively. Revolving Credit Facility On September 2, 2021, VMware entered into an unsecured credit agreement establishing a revolving credit facility with a syndicate of lenders that provides the Company with a borrowing capacity of up to $1.5 billion for general corporate purposes (the “2021 Revolving Credit Facility”). Commitments under the 2021 Revolving Credit Facility are available for a period of five years , which may be extended, subject to the satisfaction of certain conditions, by up to two one-year periods. A s of August 4, 2023 and February 3, 2023, there was no outstanding borrowing under the 2021 Revolving Credit Facility. The 2021 Revolving Credit Facility contains certain representations, warranties and covenants. Commitment fees, interest rates and other terms of borrowing under the 2021 Revolving Credit Facility may vary based on VMware’s external credit ratings. The amount incurred in connection with the ongoing commitment fee, which is payable quarterly in arrears, was not significant duri ng each of the three and six months ended August 4, 2023 and July 29, 2022, respectively . During the three months ended August 4, 2023, VMware entered into an amendment to the 2021 Revolving Credit Facility to change the referenced interest rate index from LIBOR to SOFR. The Company has elected the optional expedient pursuant to ASC 848 to account for the amendment prospectively. The amendment did not have a significant impact on the Company’s condensed consolidated financial statements during the three months ended August 4, 2023. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 04, 2023 | |
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 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not 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; and • 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 did not have any significant assets or liabilities that were classified as Level 3 of the fair value hierarchy for the periods presented, and there have been no transfers between fair value measurement levels during the periods presented. The following tables set forth the fair value hierarchy of VMware’s cash equivalents and short-term investments that were required to be measured at fair value as of the periods presented (tables in millions): August 4, 2023 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 6,003 $ — $ 6,003 Time deposits (1) — 42 42 Total cash equivalents $ 6,003 $ 42 $ 6,045 February 3, 2023 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 4,250 $ — $ 4,250 Time deposits (1) — 19 19 Total cash equivalents $ 4,250 $ 19 $ 4,269 (1) Time deposits were valued at amortized cost, which approximated fair value. The Senior Notes and the 2021 Term Loan were not recorded at fair value. The fair value of the Senior Notes was approximately $8.4 billion and $8.5 billion as of August 4, 2023 and February 3, 2023. The fair value of the 2021 Term Loan approximated its carrying value as of August 4, 2023 and February 3, 2023. Fair value for the Senior Notes and the 2021 Term Loan was estimated primarily based on observable market interest rates (Level 2 inputs). VMware offers a non-qualified deferred compensation plan (the “NQDC Program”) for eligible employees, which allows participants to defer payment of part or all of their compensation. There is no net impact to the condensed consolidated statements of income under the NQDC Program since changes in the fair value of the assets offset changes in the fair value of the liabilities. As such, assets and liabilities associated with the NQDC Program have not been included in the above tables. Assets associated with the NQDC Program were the same as the liabilities at $184 million and $166 million as of August 4, 2023 and February 3, 2023, respectively, and were included in other assets on the condensed consolidated balance sheets. Liabilities associated with the NQDC Program included in accrued expenses and other on the condensed consolidated balance sheets were $17 million and $16 million as of August 4, 2023 and February 3, 2023, respectively. Liabilities associated with the NQDC Program included in other liabilities on the condensed consolidated balance sheets were $167 million and $150 million a s of August 4, 2023 and February 3, 2023, respectively. Equity Securities Without a Readily Determinable Fair Value VMware’s equity securities include investments in privately held companies, which do not have a readily determinable fair value. As of August 4, 2023 and February 3, 2023, investments in privately held companies, which consisted primarily of equity securities, had a carrying value of $83 million and $87 million, respectively, and were included in other assets on the condensed consolidated balance sheets. All gains and losses on these securities, whether realized or unrealized, were not significant for the periods presented and were recognized in other income (expense), net on the condensed consolidated statements of income. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Aug. 04, 2023 | |
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 a portion of 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 agreements. VMware manages counterparty risk by seeking counterparties of high credit quality and by monitoring credit ratings, credit spreads 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 certain operating expenses denominated in certain foreign currencies, VMware enters into forward contracts that are designated as cash flow hedging instruments as the accounting criteria for such designation are met. Therefore, the effective portion of gains or losses resulting from changes in the fair value of these instruments is initially reported in accumulated other comprehensive 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 six months ended August 4, 2023 and July 29, 2022 , the effective portion of gains or losses reclassified to the condensed consolidated statements of income was not significant to each of the individual functional line items, as well as in aggregate. Interest charges or forward points on VMware’s forward contracts were excluded from the assessment of hedge effectiveness and were recorded to the related operating expense line item on the condensed consolidated statements of income in the same period that the interest charges are incurred. These forward contracts have maturities of fourteen months or less, and as of August 4, 2023 and February 3, 2023, outstanding forward contracts had a total notional value of $357 million and $677 million, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. The fair value of these forward contracts was not significant as of August 4, 2023 and February 3, 2023. During the three and six months ended August 4, 2023 and July 29, 2022 , 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. These forward contracts generally have a maturity of one month, and as of August 4, 2023 and February 3, 2023, outstanding forward contracts had a total notional value of $1.3 billion and $1.7 billion, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. The fair value of these forward contracts was not significant as of August 4, 2023 and February 3, 2023. Gains related to the settlement of forward contracts were not significant and $30 million during the three and six months ended August 4, 2023, respectively. Gains related to the settlement of forward contracts were not significant and $56 million during the three and six months ended July 29, 2022, respectively . Gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. The combined gains and losses related to the settlement of forward contracts and the underlying foreign currency denominated assets and liabilities were not significant during the three and six months ended August 4, 2023, and resulted in net losses of $20 million and $29 million during the three and six months ended July 29, 2022, respectively . Net gains and losses are recorded in other income (expense), net on the condensed consolidated statements of income. |
Leases
Leases | 6 Months Ended |
Aug. 04, 2023 | |
Leases [Abstract] | |
Leases | Leases VMware has operating and finance leases primarily related to office facilities and equipment, which have remaining lease terms of one month to 23 years. The components of lease expense during the periods presented were as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Operating lease expense $ 46 $ 48 $ 94 $ 99 Finance lease expense: Amortization of right-of-use (“ROU”) assets 3 2 5 3 Interest on lease liabilities — — 1 1 Total finance lease expense 3 2 6 4 Short-term lease expense 1 — 1 — Variable lease expense 8 9 17 15 Total lease expense $ 58 $ 59 $ 118 $ 118 The Company subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease income was not significant during each of the three and six months ended August 4, 2023 and July 29, 2022 . Supplemental cash flow information related to operating and finance leases during the periods presented was as follows (table in millions): Six Months Ended August 4, July 29, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93 $ 86 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 3 2 ROU assets obtained in exchange for lease liabilities: Operating leases $ 15 $ 53 Finance leases 11 — Supplemental balance sheet information related to operating and finance leases as of the periods presented was as follows (table in millions): August 4, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 913 $ 53 Lease liabilities, current (2) $ 139 $ 12 Lease liabilities, non-current (3) 785 43 Total lease liabilities $ 924 $ 55 February 3, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 974 $ 47 Lease liabilities, current (2) $ 144 $ 9 Lease liabilities, non-current (3) 845 39 Total lease liabilities $ 989 $ 48 (1) ROU assets for operating leases are included in other assets property and equipment, net (2) Current lease liabilities are included primarily in accrued expenses and other (3) Non-current operating lease liabilities are presented as operating lease liabilities on the condensed consolidated balance sheets. Non-current finance lease liabilities are included in other liabilities Lease term and discount rate related to operating and finance leases as of the periods presented were as follows: August 4, February 3, 2023 2023 Weighted-average remaining lease term (in years) Operating leases 11.8 11.8 Finance leases 4.8 5.7 Weighted-average discount rate Operating leases 3.7 % 3.5 % Finance leases 3.5 % 3.2 % The following represents VMware’s future minimum lease payments under non-cancellable operating and finance leases as of August 4, 2023 (table in millions): Operating Leases Finance Leases Remainder of 2024 $ 88 $ 8 2025 138 12 2026 127 13 2027 113 10 2028 99 7 Thereafter 606 9 Total future minimum lease payments 1,171 59 Less: Imputed interest (247) (4) Total lease liabilities (1) $ 924 $ 55 (1) Total lease liabilities as of August 4, 2023 excluded legally binding lease payments for leases signed but not yet commenced of $6 million. The amount of the future operating lease commitments after fiscal 2028 is primarily for the ground leases on VMware’s Palo Alto, California headquarter facilities, which expire in fiscal 2047. As several of VMware’s operating leases are payable in foreign currencies, the operating lease payments may fluctuate in response to changes in the exchange rate between the U.S. dollar and the foreign currencies in which the commitments are payable. |
Leases | Leases VMware has operating and finance leases primarily related to office facilities and equipment, which have remaining lease terms of one month to 23 years. The components of lease expense during the periods presented were as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Operating lease expense $ 46 $ 48 $ 94 $ 99 Finance lease expense: Amortization of right-of-use (“ROU”) assets 3 2 5 3 Interest on lease liabilities — — 1 1 Total finance lease expense 3 2 6 4 Short-term lease expense 1 — 1 — Variable lease expense 8 9 17 15 Total lease expense $ 58 $ 59 $ 118 $ 118 The Company subleases certain leased office space to third parties when it determines there is excess leased capacity. Sublease income was not significant during each of the three and six months ended August 4, 2023 and July 29, 2022 . Supplemental cash flow information related to operating and finance leases during the periods presented was as follows (table in millions): Six Months Ended August 4, July 29, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93 $ 86 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 3 2 ROU assets obtained in exchange for lease liabilities: Operating leases $ 15 $ 53 Finance leases 11 — Supplemental balance sheet information related to operating and finance leases as of the periods presented was as follows (table in millions): August 4, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 913 $ 53 Lease liabilities, current (2) $ 139 $ 12 Lease liabilities, non-current (3) 785 43 Total lease liabilities $ 924 $ 55 February 3, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 974 $ 47 Lease liabilities, current (2) $ 144 $ 9 Lease liabilities, non-current (3) 845 39 Total lease liabilities $ 989 $ 48 (1) ROU assets for operating leases are included in other assets property and equipment, net (2) Current lease liabilities are included primarily in accrued expenses and other (3) Non-current operating lease liabilities are presented as operating lease liabilities on the condensed consolidated balance sheets. Non-current finance lease liabilities are included in other liabilities Lease term and discount rate related to operating and finance leases as of the periods presented were as follows: August 4, February 3, 2023 2023 Weighted-average remaining lease term (in years) Operating leases 11.8 11.8 Finance leases 4.8 5.7 Weighted-average discount rate Operating leases 3.7 % 3.5 % Finance leases 3.5 % 3.2 % The following represents VMware’s future minimum lease payments under non-cancellable operating and finance leases as of August 4, 2023 (table in millions): Operating Leases Finance Leases Remainder of 2024 $ 88 $ 8 2025 138 12 2026 127 13 2027 113 10 2028 99 7 Thereafter 606 9 Total future minimum lease payments 1,171 59 Less: Imputed interest (247) (4) Total lease liabilities (1) $ 924 $ 55 (1) Total lease liabilities as of August 4, 2023 excluded legally binding lease payments for leases signed but not yet commenced of $6 million. The amount of the future operating lease commitments after fiscal 2028 is primarily for the ground leases on VMware’s Palo Alto, California headquarter facilities, which expire in fiscal 2047. As several of VMware’s operating leases are payable in foreign currencies, the operating lease payments may fluctuate in response to changes in the exchange rate between the U.S. dollar and the foreign currencies in which the commitments are payable. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Aug. 04, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Stock Repurchases VMware purchases stock from time to time in open market transactions, subject to market conditions. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including VMware’s stock price, cash requirements for operations and business combinations, corporate, legal and regulatory requirements and other market and economic conditions. VMware is not obligated to purchase any shares under its stock repurchase programs. Purchases may be discontinued at any time VMware believes additional purchases are not warranted. All shares repurchased under VMware’s stock repurchase programs are retired. As of August 4, 2023, the cumulative authorized amount remaining for stock repurchases under the October 2021 authorized repurchase program was $1.6 billion. In connection with its entry into the Merger Agreement, VMware suspended its stock repurchase program during the second quarter of fiscal 2023. The following table summarizes stock repurchase activity during the three and six months ended July 29, 2022 (aggregate purchase price in millions, shares in thousands): Three Months Ended Six Months Ended July 29, July 29, 2022 2022 Aggregate purchase price $ — $ 89 Class A common stock repurchased — 803 Weighted-average price per share $ — $ 111.33 Restricted Stock Restricted stock primarily consists of RSU awards granted to employees. The value of an RSU grant is based on VMware’s stock price on the date of the grant. The shares underlying the RSU awards are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of VMware’s Class A common stock. Restricted stock also includes PSU awards granted to certain VMware executives and employees. PSU awards have performance conditions and a service-based vesting component. Upon vesting, PSU awards convert into Class A common stock at various ratios ranging from 0.1 to 2.0 shares per PSU, depending upon the degree of achievement of the performance-based targets designated by each award. If minimum performance thresholds are not achieved, then no shares are issued. The following table summarizes restricted stock activity since February 3, 2023 (units in thousands): Number of Units Weighted-Average Grant Date Fair Value Outstanding, February 3, 2023 23,522 $ 117.73 Granted 9,146 141.63 Vested (6,952) 120.41 Forfeited (1,341) 121.61 Outstanding, August 4, 2023 24,375 125.72 The aggregate vesting date fair value of restricted stock that vested during the six months ended August 4, 2023 was $880 million. As of August 4, 2023, restricted stock representing 24.4 million shares of VMware’s Class A common stock were outstanding, with an aggregate intrinsic value of $3.9 billion based on VMware’s closing stock price as of August 4, 2023. Net Excess Tax Benefits (Tax Deficiencies) |
Segment Information
Segment Information | 6 Months Ended |
Aug. 04, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationVMware operates in one reportable operating segment; thus, all required financial segment information is included in the condensed consolidated financial statements. An operating segment is defined as the component of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in order to allocate resources and assess performance. VMware’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. Revenue by type during the periods presented was as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Revenue: License $ 619 $ 796 $ 1,136 $ 1,369 Subscription and SaaS 1,259 943 2,476 1,842 Services: Software maintenance 1,222 1,299 2,456 2,609 Professional services 308 298 617 604 Total services 1,530 1,597 3,073 3,213 Total revenue $ 3,408 $ 3,336 $ 6,685 $ 6,424 Revenue by geographic area during the periods presented was as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 United States $ 1,621 $ 1,648 $ 3,176 $ 3,166 International 1,787 1,688 3,509 3,258 Total $ 3,408 $ 3,336 $ 6,685 $ 6,424 Revenue by geographic area is based on the ship-to addresses of VMware’s customers. No individual country other than the U.S. accounted for 10% or more of revenue during each of the three and six months ended August 4, 2023 and July 29, 2022. Long-lived assets by geographic area, which primarily include property and equipment, net, as of the periods presented were as follows (table in millions): August 4, February 3, 2023 2023 United States $ 814 $ 840 International 243 261 Total $ 1,057 $ 1,101 As of August 4, 2023, the U.S. and India each accounted for more than 10% of these assets, with India accounting for 12% of these assets. As of February 3, 2023, the U.S. and India each accounted for more than 10% of these assets, with India accounting for 13% of these assets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 477 | $ 347 | $ 701 | $ 589 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Aug. 04, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Aug. 04, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The fiscal year for VMware is the 52 or 53 weeks ending on the Friday nearest to January 31 of each year. Fiscal 2024 is a 52-week fiscal year and fiscal 2023 was a 53-week fiscal year, in which the fourth quarter had 14 weeks. 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 fiscal year 2024. 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 Annual Report on Form 10-K filed on March 28, 2023. On November 1, 2021, VMware’s spin-off from Dell Technologies Inc. (“Dell”) was completed (the “Spin-Off”). As a result of the Spin-Off, VMware became a standalone company and entities affiliated with Michael Dell (the “MSD Stockholders”), who serves as VMware’s Chairman of the Board and chairman and chief executive officer of Dell, and entities affiliated with Silver Lake Partners (the “SLP Stockholders”), of which Egon Durban, a VMware director, is a managing partner, became owners of direct interests in VMware representing 39.2% and 9.7%, respectively, of VMware’s outstanding stock, based on the shares outstanding as of August 4, 2023. Due to the MSD Stockholders’ and SLP Stockholders’ direct ownership in both VMware and Dell, as well as Mr. Dell’s executive position with Dell, transactions with Dell continue to be considered related party transactions following the Spin-Off. Management believes the assumptions underlying the condensed consolidated financial statements are reasonable. However, the amounts recorded for VMware’s related party transactions with Dell and its consolidated subsidiaries may not be considered arm’s length with an unrelated third party. Therefore, the condensed consolidated 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 products and services the Company receives from and provides to Dell. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of VMware and subsidiaries in which VMware has a controlling financial interest. All intercompany transactions and account balances between VMware and its subsidiaries have been eliminated in consolidation. Transactions with Dell and its consolidated subsidiaries are 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 EstimatesThe 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, expected period of benefit for deferred commissions, 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. To the extent the Company’s actual results differ materially from those estimates and assumptions, VMware’s future financial statements could be affected. |
Income Taxes | Income TaxesIn July 2023, the Internal Revenue Service released Notice 2023-55, which provides temporary relief for taxpayers in determining whether a foreign tax is eligible for a foreign tax credit under Sections 901 and 903 of the Internal Revenue Code. |
Derivative Instruments and Hedging Activities | VMware conducts business on a global basis in multiple foreign currencies, subjecting the Company to foreign currency risk. To mitigate a portion of 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 agreements. VMware manages counterparty risk by seeking counterparties of high credit quality and by monitoring credit ratings, credit spreads and other relevant public information about its counterparties. VMware does not, and does not intend to, use derivative instruments for trading or speculative purposes. |
Revenue, Unearned Revenue and_2
Revenue, Unearned Revenue and Remaining Performance Obligations (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Unearned Revenue | Unearned revenue as of the periods presented consisted of the following (table in millions): August 4, February 3, 2023 2023 Unearned license revenue $ 11 $ 21 Unearned subscription and software-as-a-service (“SaaS”) revenue 4,488 4,401 Unearned software maintenance revenue 6,095 6,805 Unearned professional services revenue 1,496 1,516 Total unearned revenue $ 12,090 $ 12,743 |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Information about VMware’s revenue and unearned revenue from such arrangements for the periods presented consisted of the following (table in millions): Revenue Unearned Revenue Three Months Ended Six Months Ended As of August 4, July 29, August 4, July 29, August 4, February 3, 2023 2022 2023 2022 2023 2023 Reseller revenue $ 1,225 $ 1,313 $ 2,380 $ 2,451 $ 5,632 $ 6,145 Internal-use revenue 44 15 58 27 44 19 Information about VMware’s payments for such arrangements during the periods presented consisted of the following (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Purchases and leases of products and purchases of services $ 51 $ 53 $ 89 $ 95 As of the periods presented, amounts due to and due from Dell pursuant to the Tax Matters Agreement consisted of the following (table in millions): August 4, February 3, 2023 2023 Due from related parties: Current $ — $ 1 Non-current 267 208 Due to related parties: Current $ 341 $ 306 Non-current 504 648 |
Definite-Lived Intangible Ass_2
Definite-Lived Intangible Assets, Net (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | As of the periods presented, definite-lived intangible assets consisted of the following (amounts in tables in millions): August 4, 2023 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 5.4 $ 787 $ (658) $ 129 Customer relationships and customer lists 12.0 626 (402) 224 Trademarks and tradenames 6.8 69 (54) 15 Total definite-lived intangible assets $ 1,482 $ (1,114) $ 368 February 3, 2023 Weighted-Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology 5.3 $ 819 $ (623) $ 196 Customer relationships and customer lists 11.9 632 (371) 261 Trademarks and tradenames 6.8 69 (48) 21 Total definite-lived intangible assets $ 1,520 $ (1,042) $ 478 |
Schedule of Future Amortization Expense | Based on intangible assets recorded as of August 4, 2023 and assuming no subsequent additions, dispositions or impairment of underlying assets, the remaining estimated annual amortization expense over the next five fiscal years and thereafter is expected to be as follows (table in millions): Remainder of 2024 $ 88 2025 114 2026 73 2027 43 2028 16 Thereafter 34 Total $ 368 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of 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 periods presented (table in millions, except per share amounts and shares in thousands): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Net income $ 477 $ 347 $ 701 $ 589 Weighted-average shares, basic 430,395 422,002 429,290 421,294 Effect of other dilutive securities 3,695 2,123 3,549 2,267 Weighted-average shares, diluted 434,090 424,125 432,839 423,561 Net income per weighted-average share, basic $ 1.11 $ 0.82 $ 1.63 $ 1.40 Net income per weighted-average share, diluted $ 1.10 $ 0.82 $ 1.62 $ 1.39 |
Schedule of Antidilutive Securities Excluded from Computation of Net Income per Share | The following table sets forth the weighted-average common share equivalents of Common Stock that were excluded from the diluted net income per share calculations during the periods presented because their effect would have been anti-dilutive (shares in thousands): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Anti-dilutive securities: Employee stock options — 159 — 126 RSUs 87 876 1,297 679 Total 87 1,035 1,297 805 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of the Company’s cash and cash equivalents, and current and non-current portion of restricted cash reported on the condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash as of the periods presented (table in millions): August 4, February 3, 2023 2023 Cash and cash equivalents $ 6,801 $ 5,100 Restricted cash within other current assets 21 24 Restricted cash within other assets 1 3 Total cash, cash equivalents and restricted cash $ 6,823 $ 5,127 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Senior Notes | The carrying value of the Senior Notes as of the periods presented was as follows (amounts in millions): August 4, February 3, Effective Interest Rate 2023 2023 2017 Senior Notes: 3.90% Senior Note Due August 21, 2027 $ 1,250 $ 1,250 4.05% 2020 Senior Notes: 4.50% Senior Note Due May 15, 2025 750 750 4.70% 4.65% Senior Note Due May 15, 2027 500 500 4.80% 4.70% Senior Note Due May 15, 2030 750 750 4.86% 2021 Senior Notes: 0.60% Senior Note Due August 15, 2023 1,000 1,000 0.95% 1.00% Senior Note Due August 15, 2024 1,250 1,250 1.23% 1.40% Senior Note Due August 15, 2026 1,500 1,500 1.61% 1.80% Senior Note Due August 15, 2028 750 750 2.01% 2.20% Senior Note Due August 15, 2031 1,500 1,500 2.32% Total principal amount 9,250 9,250 Less: unamortized discount (11) (12) Less: unamortized debt issuance costs (39) (46) Net carrying amount $ 9,200 $ 9,192 Current portion of long-term debt $ 1,000 $ 1,000 Long-term debt 8,200 8,192 |
Schedule of Maturities of Long-term Debt | The future principal payments for the next five fiscal years and thereafter for the Senior Notes as of August 4, 2023 were as follows (amounts in millions): Remainder of 2024 $ 1,000 2025 1,250 2026 750 2027 1,500 2028 1,750 Thereafter 3,000 Total $ 9,250 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy | The following tables set forth the fair value hierarchy of VMware’s cash equivalents and short-term investments that were required to be measured at fair value as of the periods presented (tables in millions): August 4, 2023 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 6,003 $ — $ 6,003 Time deposits (1) — 42 42 Total cash equivalents $ 6,003 $ 42 $ 6,045 February 3, 2023 Level 1 Level 2 Total Cash equivalents: Money-market funds $ 4,250 $ — $ 4,250 Time deposits (1) — 19 19 Total cash equivalents $ 4,250 $ 19 $ 4,269 (1) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost, Cash Flow, Term and Discount Rate | The components of lease expense during the periods presented were as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Operating lease expense $ 46 $ 48 $ 94 $ 99 Finance lease expense: Amortization of right-of-use (“ROU”) assets 3 2 5 3 Interest on lease liabilities — — 1 1 Total finance lease expense 3 2 6 4 Short-term lease expense 1 — 1 — Variable lease expense 8 9 17 15 Total lease expense $ 58 $ 59 $ 118 $ 118 Supplemental cash flow information related to operating and finance leases during the periods presented was as follows (table in millions): Six Months Ended August 4, July 29, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 93 $ 86 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 3 2 ROU assets obtained in exchange for lease liabilities: Operating leases $ 15 $ 53 Finance leases 11 — Lease term and discount rate related to operating and finance leases as of the periods presented were as follows: August 4, February 3, 2023 2023 Weighted-average remaining lease term (in years) Operating leases 11.8 11.8 Finance leases 4.8 5.7 Weighted-average discount rate Operating leases 3.7 % 3.5 % Finance leases 3.5 % 3.2 % |
Schedule of Lease Assets and Liabilities | Supplemental balance sheet information related to operating and finance leases as of the periods presented was as follows (table in millions): August 4, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 913 $ 53 Lease liabilities, current (2) $ 139 $ 12 Lease liabilities, non-current (3) 785 43 Total lease liabilities $ 924 $ 55 February 3, 2023 Operating Leases Finance Leases ROU assets, non-current (1) $ 974 $ 47 Lease liabilities, current (2) $ 144 $ 9 Lease liabilities, non-current (3) 845 39 Total lease liabilities $ 989 $ 48 (1) ROU assets for operating leases are included in other assets property and equipment, net (2) Current lease liabilities are included primarily in accrued expenses and other (3) Non-current operating lease liabilities are presented as operating lease liabilities on the condensed consolidated balance sheets. Non-current finance lease liabilities are included in other liabilities |
Schedule of Operating Lease Liability Maturity | The following represents VMware’s future minimum lease payments under non-cancellable operating and finance leases as of August 4, 2023 (table in millions): Operating Leases Finance Leases Remainder of 2024 $ 88 $ 8 2025 138 12 2026 127 13 2027 113 10 2028 99 7 Thereafter 606 9 Total future minimum lease payments 1,171 59 Less: Imputed interest (247) (4) Total lease liabilities (1) $ 924 $ 55 (1) Total lease liabilities as of August 4, 2023 excluded legally binding lease payments for leases signed but not yet commenced of $6 million. |
Schedule of Finance Lease Liability Maturity | The following represents VMware’s future minimum lease payments under non-cancellable operating and finance leases as of August 4, 2023 (table in millions): Operating Leases Finance Leases Remainder of 2024 $ 88 $ 8 2025 138 12 2026 127 13 2027 113 10 2028 99 7 Thereafter 606 9 Total future minimum lease payments 1,171 59 Less: Imputed interest (247) (4) Total lease liabilities (1) $ 924 $ 55 (1) Total lease liabilities as of August 4, 2023 excluded legally binding lease payments for leases signed but not yet commenced of $6 million. |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Repurchase Program | The following table summarizes stock repurchase activity during the three and six months ended July 29, 2022 (aggregate purchase price in millions, shares in thousands): Three Months Ended Six Months Ended July 29, July 29, 2022 2022 Aggregate purchase price $ — $ 89 Class A common stock repurchased — 803 Weighted-average price per share $ — $ 111.33 |
Schedule of Restricted Stock Activity | The following table summarizes restricted stock activity since February 3, 2023 (units in thousands): Number of Units Weighted-Average Grant Date Fair Value Outstanding, February 3, 2023 23,522 $ 117.73 Granted 9,146 141.63 Vested (6,952) 120.41 Forfeited (1,341) 121.61 Outstanding, August 4, 2023 24,375 125.72 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 04, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Type | Revenue by type during the periods presented was as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 Revenue: License $ 619 $ 796 $ 1,136 $ 1,369 Subscription and SaaS 1,259 943 2,476 1,842 Services: Software maintenance 1,222 1,299 2,456 2,609 Professional services 308 298 617 604 Total services 1,530 1,597 3,073 3,213 Total revenue $ 3,408 $ 3,336 $ 6,685 $ 6,424 |
Schedule of Revenue by Geographic Area | Revenue by geographic area during the periods presented was as follows (table in millions): Three Months Ended Six Months Ended August 4, July 29, August 4, July 29, 2023 2022 2023 2022 United States $ 1,621 $ 1,648 $ 3,176 $ 3,166 International 1,787 1,688 3,509 3,258 Total $ 3,408 $ 3,336 $ 6,685 $ 6,424 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets by geographic area, which primarily include property and equipment, net, as of the periods presented were as follows (table in millions): August 4, February 3, 2023 2023 United States $ 814 $ 840 International 243 261 Total $ 1,057 $ 1,101 |
Overview and Basis of Present_3
Overview and Basis of Presentation - Basis of Presentation (Details) | Aug. 04, 2023 |
Director | SLP Stockholders | |
Overview and Basis of Presentation [Line Items] | |
Ownership percentage | 9.70% |
MSD Stockholders | Board of Directors Chairman | |
Overview and Basis of Presentation [Line Items] | |
Ownership percentage | 39.20% |
Overview and Basis of Present_4
Overview and Basis of Presentation - Broadcom Merger Agreement (Details) | Aug. 04, 2023 $ / shares | Feb. 03, 2023 $ / shares | May 26, 2022 $ / shares |
Business Acquisition [Line Items] | |||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |
VMware, Inc. | Broadcom Inc. | |||
Business Acquisition [Line Items] | |||
Common stock, par value (in USD per share) | $ 0.001 | ||
Blended price per share (in USD per share) | $ 142.50 | ||
Business merger, exchange ratio | 0.25200 | ||
Percentage of aggregate number of shares issued and outstanding to be received, term of merger arrangement (percent) | 0.50 | ||
VMware, Inc. | Class A Common Stock | |||
Business Acquisition [Line Items] | |||
Common stock, par value (in USD per share) | $ 0.01 |
Overview and Basis of Present_5
Overview and Basis of Presentation (Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2023 | Aug. 04, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Discrete tax benefit | $ 60 | $ 60 |
Revenue, Unearned Revenue and_3
Revenue, Unearned Revenue and Remaining Performance Obligations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract assets | $ 33 | $ 33 | $ 33 | ||
Customer deposits included in accrued expenses and other | 2,017 | 2,017 | 1,087 | ||
Customer deposits, certain cancellation rights | 1,600 | 1,600 | 681 | ||
Customer deposits, cloud credits | 380 | 380 | 405 | ||
Customer deposits included in other liabilities | 179 | 179 | 182 | ||
Deferred commissions, non-current | 1,600 | 1,600 | $ 1,500 | ||
Amortization of deferred commissions | 183 | $ 158 | $ 362 | $ 301 | |
Remaining weighted average contractual duration | 2 years | ||||
Current period billings | 2,200 | $ 3,900 | |||
Revenue recognized from amounts previously classified as unearned revenue | $ 2,300 | $ 2,200 | $ 4,600 | $ 4,300 |
Revenue, Unearned Revenue and_4
Revenue, Unearned Revenue and Remaining Performance Obligations - Schedule of Unearned Revenue (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total unearned revenue | $ 12,090 | $ 12,743 |
Unearned license revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned revenue | 11 | 21 |
Unearned subscription and software-as-a-service (“SaaS”) revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned revenue | 4,488 | 4,401 |
Unearned software maintenance revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned revenue | 6,095 | 6,805 |
Unearned professional services revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total unearned revenue | $ 1,496 | $ 1,516 |
Revenue, Unearned Revenue and_5
Revenue, Unearned Revenue and Remaining Performance Obligations - Remaining Performance Obligations (Details) - USD ($) $ in Billions | Aug. 04, 2023 | Feb. 03, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 12.9 | $ 13.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-04 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 54% | |
Remaining performance obligation period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-05 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 55% | |
Remaining performance obligation period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-04 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation period | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-08-05 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation period |
Related Parties - Transactions
Related Parties - Transactions with Dell (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Nov. 01, 2021 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Customer Concentration Risk | OEM Revenue | Dell | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues | 13% | 13% | 13% | 13% | ||
Dell | ||||||
Related Party Transaction [Line Items] | ||||||
Commercial framework agreement, term | 5 years | |||||
Commercial framework agreement, renewal term | 1 year | |||||
Customer deposits | $ 1,100 | $ 1,100 | $ 766 | |||
Dell | Customer Concentration Risk | Dell acting as OEM | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of revenues | 5% | 5% | 5% | 5% | ||
Dell | Revenue Benchmark | Customer Concentration Risk | ||||||
Related Party Transaction [Line Items] | ||||||
Concentration risk, percentage (more than 10%) | 37% | 40% | 36% | 39% |
Related Parties - Schedule of R
Related Parties - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | ||
Related Party Transaction [Line Items] | ||||||
Revenue | [1] | $ 3,408 | $ 3,336 | $ 6,685 | $ 6,424 | |
Unearned Revenue | 12,090 | 12,090 | $ 12,743 | |||
Dell | Reseller revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 1,225 | 1,313 | 2,380 | 2,451 | ||
Unearned Revenue | 5,632 | 5,632 | 6,145 | |||
Dell | Internal-use revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 44 | 15 | 58 | 27 | ||
Unearned Revenue | 44 | 44 | $ 19 | |||
Dell | Purchases and leases of products and purchases of services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party costs | $ 51 | $ 53 | $ 89 | $ 95 | ||
[1]Includes related party revenue as follows (refer to Note C): License $ 291 $ 436 $ 478 $ 690 Subscription and SaaS 389 259 767 514 Services 589 633 1,193 1,274 |
Related Parties - Dell Financia
Related Parties - Dell Financial Services (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Financial Services | Dell | ||||
Related Party Transaction [Line Items] | ||||
Financing fees | $ 0 | $ 0 | $ 21 | $ 17 |
Related Parties - Tax Agreement
Related Parties - Tax Agreements with Dell (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Related Party Transaction [Line Items] | ||
Due from related parties, current | $ 1,267 | $ 2,078 |
Due from related parties, non-current | 267 | 208 |
Due to related parties, current | 404 | 390 |
Due to related parties, non-current | 504 | 648 |
Dell | Tax matters agreement | ||
Related Party Transaction [Line Items] | ||
Due from related parties, current | 0 | 1 |
Due from related parties, non-current | 267 | 208 |
Due to related parties, current | 341 | 306 |
Due to related parties, non-current | $ 504 | $ 648 |
Related Parties - Tax Agreeme_2
Related Parties - Tax Agreement with Dell (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Related Party Transaction [Line Items] | |||||
Transition tax, payment period | 2 years | ||||
Tax matters agreement | Dell | |||||
Related Party Transaction [Line Items] | |||||
Transition tax | $ 334 | $ 334 | $ 445 | ||
Uncertain tax positions | 292 | 292 | $ 285 | ||
Payments made to dell | $ 113 | $ 59 | $ 113 | $ 59 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | |||||||||
May 01, 2023 USD ($) Patent patent | Feb. 21, 2023 patent | Jun. 23, 2020 USD ($) | Jun. 02, 2020 lawsuit patent | Mar. 05, 2020 stockholder shares | Apr. 25, 2019 Patent trademark | Jan. 31, 2020 Patent patent | Aug. 14, 2023 $ / shares | May 05, 2023 USD ($) | Dec. 31, 2019 $ / shares | |
WSOU Investments LLC vs VMware | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of lawsuits | lawsuit | 4 | |||||||||
Asserted patents dropped | patent | 1 | |||||||||
Asserted patents remaining | patent | 1 | 3 | ||||||||
Patents found not infringed | patent | 2 | |||||||||
Pivotal Stockholders | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of petitioners | stockholder | 2 | |||||||||
Aggregate number of shares seeking a judicial determination of fair value (in shares) | shares | 10,000,100 | |||||||||
Payments to dissenting stockholders | $ | $ 91 | |||||||||
Pivotal Stockholders | Pivotal | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Business merger, share price (in USD per share) | $ / shares | $ 15 | |||||||||
Pivotal Stockholders | Subsequent Event | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Fair value of acquisition (in USD per share) | $ / shares | $ 14.83 | |||||||||
Cirba Inc. Vs. VMware | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Patent infringement claims | 2 | 4 | ||||||||
Trademark infringement claims | trademark | 3 | |||||||||
Number of patents allegedly infringed upon | 8 | |||||||||
Additional patent infringement claims | 2 | |||||||||
Number of patents that survived reexamination | 1 | |||||||||
Number of patents granted with reexamination | 1 | |||||||||
Number of patents found invalid through an inter partes review | 1 | |||||||||
Number of patents undergoing a post-grant review | 1 | |||||||||
Patents found invalid | patent | 1 | |||||||||
Patents dismissed | patent | 4 | |||||||||
Patents served and stayed | patent | 3 | |||||||||
Number of patents willfully infringed upon | 1 | |||||||||
Patents found valid | patent | 1 | |||||||||
Damages awarded | $ | $ 85 | |||||||||
Accrued loss contingency | $ | $ 85 |
Definite-Lived Intangible Ass_3
Definite-Lived Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,482 | $ 1,520 |
Accumulated Amortization | (1,114) | (1,042) |
Net Book Value | 368 | 478 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 787 | 819 |
Accumulated Amortization | (658) | (623) |
Net Book Value | $ 129 | $ 196 |
Purchased technology | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives (in years) | 5 years 4 months 24 days | 5 years 3 months 18 days |
Customer relationships and customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 626 | $ 632 |
Accumulated Amortization | (402) | (371) |
Net Book Value | $ 224 | $ 261 |
Customer relationships and customer lists | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives (in years) | 12 years | 11 years 10 months 24 days |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 69 | $ 69 |
Accumulated Amortization | (54) | (48) |
Net Book Value | $ 15 | $ 21 |
Trademarks and tradenames | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Lives (in years) | 6 years 9 months 18 days | 6 years 9 months 18 days |
Definite-Lived Intangible Ass_4
Definite-Lived Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 58 | $ 63 | $ 118 | $ 129 |
Definite-Lived Intangible Ass_5
Definite-Lived Intangible Assets, Net - Amortization of Intangible Assets (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 88 | |
2025 | 114 | |
2026 | 73 | |
2027 | 43 | |
2028 | 16 | |
Thereafter | 34 | |
Net Book Value | $ 368 | $ 478 |
Net Income Per Share - Computat
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 | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income, basic | $ 477 | $ 347 | $ 701 | $ 589 |
Net income, diluted | $ 477 | $ 347 | $ 701 | $ 589 |
Weighted-average shares, basic (in shares) | 430,395 | 422,002 | 429,290 | 421,294 |
Effect of other dilutive securities (in shares) | 3,695 | 2,123 | 3,549 | 2,267 |
Weighted-average shares, diluted (in shares) | 434,090 | 424,125 | 432,839 | 423,561 |
Net income per weighted-average share, basic (in USD per share) | $ 1.11 | $ 0.82 | $ 1.63 | $ 1.40 |
Net income per weighted-average share, diluted (in USD per share) | $ 1.10 | $ 0.82 | $ 1.62 | $ 1.39 |
Net Income Per Share - Anti-Dil
Net Income Per Share - Anti-Dilutive Shares Excluded From Net Income (Details) - Common Stock - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities, amount (in shares) | 87 | 1,035 | 1,297 | 805 |
Employee stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities, amount (in shares) | 0 | 159 | 0 | 126 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities, amount (in shares) | 87 | 876 | 1,297 | 679 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | $ 6,801 | $ 5,100 |
Cash equivalents | 6,000 | 4,300 |
Money-market funds | ||
Schedule of Investments [Line Items] | ||
Cash equivalents | 6,000 | 4,200 |
Time deposits | ||
Schedule of Investments [Line Items] | ||
Cash equivalents | $ 42 | $ 19 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash - Restricted Cash (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 | Jul. 29, 2022 | Jan. 28, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 6,801 | $ 5,100 | ||
Restricted cash within other current assets | 21 | 24 | ||
Restricted cash within other assets | 1 | 3 | ||
Total cash, cash equivalents and restricted cash | $ 6,823 | $ 5,127 | $ 3,272 | $ 3,663 |
Debt - Unsecured Senior Notes (
Debt - Unsecured Senior Notes (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Aug. 15, 2023 USD ($) | Aug. 02, 2021 USD ($) debt_instrument | Aug. 04, 2023 USD ($) | Jul. 29, 2022 USD ($) | Aug. 04, 2023 USD ($) | Jul. 29, 2022 USD ($) | Feb. 03, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Interest expense | $ 79 | $ 74 | $ 159 | $ 145 | |||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount | 11 | 11 | $ 12 | ||||
Interest expense | $ 60 | $ 61 | $ 123 | $ 123 | |||
Repurchase price as percent of principal | 101% | ||||||
Senior Notes | 2021 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Number of debt instruments | debt_instrument | 5 | ||||||
Proceeds from issuance of senior notes, net of issuance costs | $ 5,900 | ||||||
Debt discount | 11 | ||||||
Debt issuance costs | $ 47 | ||||||
Senior Notes | 0.60% Senior Note Due August 15, 2023 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Redemption of debt | $ 1,000 |
Debt - Carrying Value of Senior
Debt - Carrying Value of Senior Notes (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 9,449 | $ 9,440 |
Current portion of long-term debt | 1,000 | 1,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,250 | 9,250 |
Less: unamortized discount | (11) | (12) |
Less: unamortized debt issuance costs | (39) | (46) |
Net carrying amount | 9,200 | 9,192 |
Current portion of long-term debt | 1,000 | 1,000 |
Long-term debt | $ 8,200 | $ 8,192 |
Senior Notes | 3.90% Senior Note Due August 21, 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.90% | 3.90% |
Long-term debt | $ 1,250 | $ 1,250 |
Effective Interest Rate | 4.05% | |
Senior Notes | 4.50% Senior Note Due May 15, 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | 4.50% |
Long-term debt | $ 750 | $ 750 |
Effective Interest Rate | 4.70% | |
Senior Notes | 4.65% Senior Note Due May 15, 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.65% | 4.65% |
Long-term debt | $ 500 | $ 500 |
Effective Interest Rate | 4.80% | |
Senior Notes | 4.70% Senior Note Due May 15, 2030 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.70% | 4.70% |
Long-term debt | $ 750 | $ 750 |
Effective Interest Rate | 4.86% | |
Senior Notes | 0.60% Senior Note Due August 15, 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.60% | 0.60% |
Long-term debt | $ 1,000 | $ 1,000 |
Effective Interest Rate | 0.95% | |
Senior Notes | 1.00% Senior Note Due August 15, 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1% | 1% |
Long-term debt | $ 1,250 | $ 1,250 |
Effective Interest Rate | 1.23% | |
Senior Notes | 1.40% Senior Note Due August 15, 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.40% | 1.40% |
Long-term debt | $ 1,500 | $ 1,500 |
Effective Interest Rate | 1.61% | |
Senior Notes | 1.80% Senior Note Due August 15, 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.80% | 1.80% |
Long-term debt | $ 750 | $ 750 |
Effective Interest Rate | 2.01% | |
Senior Notes | 2.20% Senior Note Due August 15, 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.20% | 2.20% |
Long-term debt | $ 1,500 | $ 1,500 |
Effective Interest Rate | 2.32% |
Debt - Future Principal Payment
Debt - Future Principal Payments (Details) - Senior Notes - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Debt Instrument [Line Items] | ||
Remainder of 2024 | $ 1,000 | |
2025 | 1,250 | |
2026 | 750 | |
2027 | 1,500 | |
2028 | 1,750 | |
Thereafter | 3,000 | |
Total | $ 9,250 | $ 9,250 |
Debt - Senior Unsecured Term Lo
Debt - Senior Unsecured Term Loan Facility (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 21 Months Ended | |||||
Nov. 01, 2021 | Sep. 02, 2021 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Feb. 03, 2023 | |
Debt Instrument [Line Items] | ||||||||
Repayment of term loan | $ 0 | $ 1,500 | ||||||
Long-term debt | $ 9,449 | 9,449 | $ 9,449 | $ 9,440 | ||||
Interest expense | 79 | $ 74 | 159 | 145 | ||||
VMW Term Loan | Senior Unsecured Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan maximum borrowing capacity | $ 4,000 | |||||||
Proceeds from debt issuance | $ 4,000 | |||||||
Repayment of term loan | 1,500 | 2,800 | ||||||
Long-term debt | $ 1,200 | $ 1,200 | $ 1,200 | $ 1,200 | ||||
Weighted average interest rate | 6.23% | 6.23% | 6.23% | |||||
Interest expense | $ 19 | $ 0 | $ 37 | $ 22 | ||||
VMW Term Loan | 3-Year Senior Unsecured Term Loan Facility | Senior Unsecured Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 3 years | |||||||
VMW Term Loan | 5-Year Senior Unsecured Term Loan Facility | Senior Unsecured Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 5 years | 5 years |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) | Sep. 02, 2021 USD ($) extension | Aug. 04, 2023 USD ($) | Feb. 03, 2023 USD ($) |
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 9,449,000,000 | $ 9,440,000,000 | |
Revolving Credit Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||
Debt term | 5 years | ||
Number of extensions | extension | 2 | ||
Extension period | 1 year | ||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - Cash Equivalents - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 6,045 | $ 4,269 |
Cash equivalents | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 6,003 | 4,250 |
Cash equivalents | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 42 | 19 |
Money-market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 6,003 | 4,250 |
Money-market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 6,003 | 4,250 |
Money-market funds | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 42 | 19 |
Time deposits | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Time deposits | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 42 | $ 19 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 184 | $ 166 |
Plan liabilities in accrued expenses and other | 17 | 16 |
Plan liabilities in other liabilities | 167 | 150 |
Securities without readily determinable fair value | 83 | 87 |
Level 2 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 8,400 | $ 8,500 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Derivative [Line Items] | |||||
Gain on forward contracts not designated as hedging instruments | $ 0 | $ 0 | $ 30 | $ 56 | |
Combined loss on settlement of forward contracts and the underlying foreign currency denominated assets and liabilities | 0 | $ 20 | $ 0 | $ 29 | |
Foreign Exchange Forward | Not Designated As Hedging Instrument | |||||
Derivative [Line Items] | |||||
Forward contract maturity | 1 month | 1 month | |||
Notional amount | 1,300 | $ 1,300 | $ 1,700 | ||
Foreign Exchange Forward | Cash Flow Hedging | Designated As Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | $ 357 | $ 357 | $ 677 | ||
Maximum | Foreign Exchange Forward | Cash Flow Hedging | Designated As Hedging Instrument | |||||
Derivative [Line Items] | |||||
Forward contract maturity | 14 months | 14 months |
Leases - Narrative (Details)
Leases - Narrative (Details) | 6 Months Ended |
Aug. 04, 2023 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of lease contract | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of lease contract | 23 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 46 | $ 48 | $ 94 | $ 99 |
Finance lease expense: | ||||
Amortization of right-of-use (“ROU”) assets | 3 | 2 | 5 | 3 |
Interest on lease liabilities | 0 | 0 | 1 | 1 |
Total finance lease expense | 3 | 2 | 6 | 4 |
Short-term lease expense | 1 | 0 | 1 | 0 |
Variable lease expense | 8 | 9 | 17 | 15 |
Total lease expense | $ 58 | $ 59 | $ 118 | $ 118 |
Leases - Lease Cash Flow (Detai
Leases - Lease Cash Flow (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2023 | Jul. 29, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 93 | $ 86 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 3 | 2 |
ROU assets obtained in exchange for lease liabilities: | ||
Operating leases | 15 | 53 |
Finance leases | $ 11 | $ 0 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Operating Leases | ||
ROU assets, non-current | $ 913 | $ 974 |
Lease liabilities, current | 139 | 144 |
Lease liabilities, non-current | 785 | 845 |
Total lease liabilities | 924 | 989 |
Finance Leases | ||
ROU assets, non-current | 53 | 47 |
Lease liabilities, current | 12 | 9 |
Lease liabilities, non-current | 43 | 39 |
Total lease liabilities | $ 55 | $ 48 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other | Accrued expenses and other |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other | Accrued expenses and other |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Aug. 04, 2023 | Feb. 03, 2023 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 11 years 9 months 18 days | 11 years 9 months 18 days |
Finance leases | 4 years 9 months 18 days | 5 years 8 months 12 days |
Weighted-average discount rate | ||
Operating leases | 3.70% | 3.50% |
Finance leases | 3.50% | 3.20% |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 88 | |
2025 | 138 | |
2026 | 127 | |
2027 | 113 | |
2028 | 99 | |
Thereafter | 606 | |
Total future minimum lease payments | 1,171 | |
Less: Imputed interest | (247) | |
Total lease liabilities | 924 | $ 989 |
Finance Leases | ||
Remainder of 2024 | 8 | |
2025 | 12 | |
2026 | 13 | |
2027 | 10 | |
2028 | 7 | |
Thereafter | 9 | |
Total future minimum lease payments | 59 | |
Less: Imputed interest | (4) | |
Total lease liabilities | 55 | $ 48 |
Legally binding minimum lease payments for leases signed but not yet commenced | $ 6 |
Stockholders_ Equity (Stock Rep
Stockholders’ Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 29, 2022 | Jul. 29, 2022 | Aug. 04, 2023 | |
Class of Stock [Line Items] | |||
Aggregate purchase price | $ 89 | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Remaining authorized repurchase amount | $ 1,600 | ||
Aggregate purchase price | $ 0 | $ 89 | |
Class A Stock repurchased (in shares) | 0 | 803 | |
Weighted-average price per share (in USD per share) | $ 0 | $ 111.33 |
Stockholders_ Equity (Summary o
Stockholders’ Equity (Summary of Restricted Stock Activity) (Details) - Class A Common Stock $ / shares in Units, $ in Millions | 6 Months Ended |
Aug. 04, 2023 USD ($) $ / shares shares | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock unit conversion into common stock (in shares) | 1 |
PSU | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Conversion ratio | 0.1 |
PSU | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Conversion ratio | 2 |
Restricted Stock | |
Number of Units | |
Outstanding. Ending balance (in shares) | 24,400,000 |
Weighted-Average Grant Date Fair Value (per unit) | |
Fair value of restricted stock-based awards, vested | $ | $ 880 |
Aggregate intrinsic value, nonvested | $ | $ 3,900 |
Restricted Stock | VMware RSUs | |
Number of Units | |
Outstanding, Beginning balance (in shares) | 23,522,000 |
Granted (in shares) | 9,146,000 |
Vested (in shares) | (6,952,000) |
Forfeited (in shares) | (1,341,000) |
Outstanding. Ending balance (in shares) | 24,375,000 |
Weighted-Average Grant Date Fair Value (per unit) | |
Outstanding, Beginning balance (in USD per share) | $ / shares | $ 117.73 |
Granted (in USD per share) | $ / shares | 141.63 |
Vested (in USD per share) | $ / shares | 120.41 |
Forfeited (in USD per share) | $ / shares | 121.61 |
Outstanding, Ending balance (in USD per share) | $ / shares | $ 125.72 |
Segment Information - Narrative
Segment Information - Narrative (Details) - segment | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | Feb. 03, 2023 | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | 1 | ||||
United States | Sales | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage (more than 10%) | 10% | 10% | 10% | 10% | |
United States | Assets Benchmark | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage (more than 10%) | 10% | 10% | |||
India | Assets Benchmark | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage (more than 10%) | 12% | 13% |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | $ 3,408 | $ 3,336 | $ 6,685 | $ 6,424 |
License | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 619 | 796 | 1,136 | 1,369 |
Subscription and SaaS | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 1,259 | 943 | 2,476 | 1,842 |
Total services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 1,530 | 1,597 | 3,073 | 3,213 |
Software maintenance | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,222 | 1,299 | 2,456 | 2,609 | |
Professional services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 308 | $ 298 | $ 617 | $ 604 | |
[1]Includes related party revenue as follows (refer to Note C): License $ 291 $ 436 $ 478 $ 690 Subscription and SaaS 389 259 767 514 Services 589 633 1,193 1,274 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2023 | Jul. 29, 2022 | Aug. 04, 2023 | Jul. 29, 2022 | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | |||||
Revenue | [1] | $ 3,408 | $ 3,336 | $ 6,685 | $ 6,424 |
United States | |||||
Revenues From External Customers And Long-Lived Assets [Line Items] | |||||
Revenue | 1,621 | 1,648 | 3,176 | 3,166 | |
International | |||||
Revenues From External Customers And Long-Lived Assets [Line Items] | |||||
Revenue | $ 1,787 | $ 1,688 | $ 3,509 | $ 3,258 | |
[1]Includes related party revenue as follows (refer to Note C): License $ 291 $ 436 $ 478 $ 690 Subscription and SaaS 389 259 767 514 Services 589 633 1,193 1,274 |
Segment Information - Schedul_3
Segment Information - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Aug. 04, 2023 | Feb. 03, 2023 |
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | $ 1,057 | $ 1,101 |
United States | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | 814 | 840 |
International | ||
Revenues From External Customers And Long-Lived Assets [Line Items] | ||
Long-lived assets by geographic area | $ 243 | $ 261 |