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Table of Contents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
L. Comprehensive Income
The following table sets forth the components of comprehensive income for the years ended December 31, 2010, 2009 and 2008,
respectively (table in thousands):
In each period presented on VMware’s consolidated balance sheets, accumulated other comprehensive income consisted of unrealized
gains and losses on available-for-sale securities, net of taxes.
M. Related Party Transactions
In April 2010, VMware acquired certain software product technology and expertise from EMC’s Ionix IT management business for cash
consideration of $175.0 million. EMC retained the Ionix brand and will continue to offer customers the products acquired by VMware, pursuant
to the ongoing reseller agreement between EMC and VMware. During the three months ended December 31, 2010, $10.6 million of contingent
amounts was paid to EMC in accordance with the asset purchase agreement. This amount was recorded as a reduction to the capital contribution
from EMC. See Note E for further information.
Pursuant to the ongoing reseller arrangement with EMC that commenced in 2009, EMC bundles VMware’s products and services with
EMC’s hardware and sells them to end-users. In the years ended December 31, 2010 and 2009, VMware recognized revenues of $48.5 million
and $14.1 million, respectively, from products and services sold pursuant to VMware’s reseller arrangement with EMC. As of December 31,
2010 and 2009, $29.0 million and $22.4 million, respectively, of revenues from products and services sold under the reseller arrangement were
included in unearned revenue.
In the years ended December 31, 2010, 2009 and 2008, VMware recognized professional services revenues of $60.6 million, $25.2 million
and $16.9 million, respectively, for services provided to EMC’s customers pursuant to VMware’s contractual agreements with EMC. As of
December 31, 2010 and 2009, $5.9 million and $0.7 million, respectively, of revenues from professional services to EMC customers were
included in unearned revenue.
In the years ended December 31, 2010, 2009 and 2008, VMware recognized revenues of $6.1 million, $5.6 million and $4.1 million,
respectively, from server and desktop products and services purchased by EMC for internal use pursuant to VMware’s contractual agreements
with EMC. As of December 31, 2010 and 2009, $19.3 million and $3.7 million, respectively, of revenues from server and desktop products and
services purchased by EMC for internal use were included in unearned revenue.
104
For the Year Ended December 31,
2010
2009
2008
Net income
$
357,439
$
197,098
$
290,133
Other comprehensive income:
Unrealized gains (losses) on available
-
for
-
sale securities, net of taxes of $9,239,
$2,797 and $0
15,341
4,563
—
Reclassification of (gains) losses on available-for-sale securities recognized during
the period, net of taxes of $(102), $0 and $0
(269
)
—
—
Total other comprehensive income
15,072
4,563
—
Total comprehensive income, net of taxes
$
372,511
$
201,661
$
290,133