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Table of Contents
VMware, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
VMware’s consolidated balance sheets. As of December 31, 2009, VMware had $3.0 million of income taxes receivable due from EMC and
$10.5 million of income taxes payable due to EMC. A large portion of the income tax receivable is related to 2010 federal income taxes and is
expected to be received from EMC after the 2010 consolidated federal tax return extension is filed. Balances due to or from EMC which are
unrelated to tax obligations are generally settled in cash within 60 days of each quarter-end. The timing of the tax payments due to and from
EMC is governed by the tax sharing agreement with EMC.
Transactions with Other Related Parties
In the fourth quarter of 2009, VMware entered into a definitive agreement to invest and participate in the management of VCE, (formerly
“Acadia Enterprises, LLC”). VCE is a joint venture between EMC and Cisco focused on accelerating customer build-outs of private cloud
infrastructures through end-to-end enablement of service providers and large enterprise customers. In addition to Cisco and EMC as the lead
investors, the build-out of VCE’s expanded capabilities in 2010 has also been capitalized by investments from VMware and Intel. VMware and
Intel each have a minority ownership interest in the joint venture. VMware’s participation in the joint venture is accounted for under the equity
method and did not have a material impact on the Company’
s consolidated financial statements as of and for the years ended December 31, 2010
and 2009.
Cisco Systems holds 6.5 million shares of VMware Class A common stock representing greater than 5% of VMware’
s outstanding Class A
common stock. VMware has in the past done business, and expects to continue to do business, with Cisco on a regular arm’s-length basis, on the
same or similar terms as would be negotiated with unrelated third parties. The transactions with Cisco in 2010, 2009 and 2008 were not material
to VMware’s consolidated financial statements.
N. Segment Information
VMware operates in one reportable segment. Operating segments are defined as components of an enterprise about which separate
financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing
performance. Since VMware operates in one operating segment, all required financial segment information can be found in the consolidated
financial statements.
Revenues by geographic area were as follows (table in thousands):
No country other than the United States had material revenues for the years ended December 31, 2010, 2009 or 2008.
Two distributors each accounted for more than 10% of revenues in 2010, 2009 and 2008, respectively, and another distributor accounted
for more than 10% of revenues in 2010, but less than 10% of revenues in 2009 and 2008. One channel partner accounted for more than 10% of
revenues in 2008, but less than 10% of revenues in 2010 and 2009, respectively.
106
For the Year Ended December 31,
2010
2009
2008
United States
$
1,452,738
$
1,039,033
$
987,604
International
1,404,605
984,904
893,423
Total
$
2,857,343
$
2,023,937
$
1,881,027